Document:

Unassociated Document

     

    ACE
      SECURITIES CORP.

    Depositor

     

    OCWEN
      LOAN SERVICING, LLC

    a
      Servicer

     

    WELLS
      FARGO BANK, NATIONAL ASSOCIATION 

    a
      Servicer

     

    WELLS
      FARGO BANK, NATIONAL ASSOCIATION 

    Master
      Servicer and Securities Administrator

     

    HSBC
      BANK
      USA, NATIONAL ASSOCIATION

    Trustee

     

    POOLING
      AND SERVICING AGREEMENT

     

    Dated
      as
      of May 31, 2006

     

    ACE
      Securities Corp. Home Equity Loan Trust, Series 2006-SD2

     

    Asset
      Backed Pass-Through Certificates

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    TABLE
      OF
      CONTENTS

     

    
      	
              ARTICLE
                I           
                DEFINITIONS

            
	 	 
	
              SECTION
                1.01

            	
              Defined
                Terms.

            
	
              SECTION
                1.02

            	
              Allocation
                of Certain Interest Shortfalls.

               

            
	
              ARTICLE
                II           
                CONVEYANCE
                OF MORTGAGE LOANS; ORIGINAL ISSUANCE OF CERTIFICATES

               

            
	
              SECTION
                2.01

            	
              Conveyance
                of the Mortgage Loans.

            
	
              SECTION
                2.02

            	
              Acceptance
                of REMIC I by Trustee.

            
	
              SECTION
                2.03

            	
              Repurchase
                or Substitution of Mortgage Loans.

            
	
              SECTION
                2.04

            	
              Representations
                and Warranties of the Master Servicer.

            
	
              SECTION
                2.05

            	
              Representations,
                Warranties and Covenants of Ocwen and Wells Fargo.

            
	
              SECTION
                2.06

            	
              Issuance
                of the REMIC I Regular Interests and the Class R-I
                Interest.

            
	
              SECTION
                2.07

            	
              Conveyance
                of the REMIC I Regular Interests; Acceptance of REMIC I by the
                Trustee.

            
	
              SECTION
                2.08

            	
              Issuance
                of the Residual Certificates.

            
	
              SECTION
                2.09

            	
              Establishment
                of the Trust.

            
	
              SECTION
                2.10

            	
              Purpose
                and Powers of the Trust.

            
	
              SECTION
                2.11

            	
              Representations
                and Warranties of the Trustee.

            
	 	 
	
              ARTICLE
                III           
                ADMINISTRATION
                AND SERVICING OF THE OCWEN MORTGAGE LOANS AND WELLS FARGO MORTGAGE
                LOANS;
                ACCOUNTS

            
	 	 
	
              SECTION
                3.01

            	
              Ocwen
                and Wells Fargo to Act as a Servicer.

            
	
              SECTION
                3.02

            	
              Sub-Servicing
                Agreement Between Each Servicer and Sub-Servicers.

            
	
              SECTION
                3.03

            	
              Successor
                Sub-Servicers.

            
	
              SECTION
                3.04

            	
              No
                Contractual Relationship Between Sub-Servicer, Subcontractor, Trustee
                or
                the Certificateholders.

            
	
              SECTION
                3.05

            	
              Assumption
                or Termination of Sub-Servicing Agreement by Successor
                Servicer.

            
	
              SECTION
                3.06

            	
              Collection
                of Certain Mortgage Loan Payments.

            
	
              SECTION
                3.07

            	
              Collection
                of Taxes, Assessments and Similar Items; Servicing
                Accounts.

            
	
              SECTION
                3.08

            	
              Collection
                Accounts, Simple Interest Excess Sub-Account and Distribution
                Account.

            
	
              SECTION
                3.09

            	
              Withdrawals
                from the Collection Accounts and Distribution Account.

            
	
              SECTION
                3.10

            	
              Investment
                of Funds in the Investment Accounts.

            
	
              SECTION
                3.11

            	
              Maintenance
                of Hazard Insurance, Errors and Omissions and Fidelity Coverage and
                Primary Mortgage Insurance.

            
	
              SECTION
                3.12

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

            
	
              SECTION
                3.13

            	
              Realization
                Upon Defaulted Mortgage Loans.

            
	
              SECTION
                3.14

            	
              Trustee
                to Cooperate; Release of Mortgage Files.

            
	
              SECTION
                3.15

            	
              Servicing
                Compensation.

            
	
              SECTION
                3.16

            	
              Collection
                Account Statements.

            
	
              SECTION
                3.17

            	
              Annual
                Statement as to Compliance.

            
	
              SECTION
                3.18

            	
              Assessments
                of Compliance and Attestation Reports.

            
	
              SECTION
                3.19

            	
              Annual
                Certification; Additional Information.

            
	
              SECTION
                3.20

            	
              Access
                to Certain Documentation.

            
	
              SECTION
                3.21

            	
              Title,
                Management and Disposition of REO Property.

            
	
              SECTION
                3.22

            	
              Obligations
                of Each Servicer in Respect of Prepayment Interest Shortfalls; Relief
                Act
                Interest Shortfalls.

            
	
              SECTION
                3.23

            	
              Obligations
                of Each Servicer in Respect of Mortgage Rates and Monthly
                Payments.

            
	
              SECTION
                3.24

            	
              Reserve
                Fund.

            
	
              SECTION
                3.25

            	
              Advance
                Facility.

            
	
              SECTION
                3.26

            	
              The
                Servicer’s Indemnification Obligation.

            
	 	 
	
              ARTICLE
                IV           
                ADMINISTRATION
                AND MASTER SERVICING OF THE MORTGAGE LOANS BY THE MASTER
                SERVICER

            
	 	 
	
              SECTION
                4.01

            	
              Master
                Servicer.

            
	
              SECTION
                4.02

            	
              REMIC-Related
                Covenants.

            
	
              SECTION
                4.03

            	
              Monitoring
                of the Servicers.

            
	
              SECTION
                4.04

            	
              Fidelity
                Bond.

            
	
              SECTION
                4.05

            	
              Power
                to Act; Procedures.

            
	
              SECTION
                4.06

            	
              Due-on-Sale
                Clauses; Assumption Agreements.

            
	
              SECTION
                4.07

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

            
	
              SECTION
                4.08

            	
              Standard
                Hazard Insurance and Flood Insurance Policies.

            
	
              SECTION
                4.09

            	
              Presentment
                of Claims and Collection of Proceeds.

            
	
              SECTION
                4.10

            	
              Maintenance
                of Primary Mortgage Insurance Policies.

            
	
              SECTION
                4.11

            	
              Trustee
                to Retain Possession of Certain Insurance Policies and
                Documents.

            
	
              SECTION
                4.12

            	
              Realization
                Upon Defaulted Mortgage Loans.

            
	
              SECTION
                4.13

            	
              Compensation
                for the Master Servicer.

            
	
              SECTION
                4.14

            	
              REO
                Property.

            
	
              SECTION
                4.15

            	
              Master
                Servicer Annual Statement of Compliance.

            
	
              SECTION
                4.16

            	
              Master
                Servicer Assessments of Compliance.

            
	
              SECTION
                4.17

            	
              Master
                Servicer Attestation Reports.

            
	
              SECTION
                4.18

            	
              Annual
                Certification.

            
	
              SECTION
                4.19

            	
              Obligation
                of the Master Servicer in Respect of Prepayment Interest
                Shortfalls.

            
	
              SECTION
                4.20

            	
              Prepayment
                Penalty Verification.

            
	 	 
	
              ARTICLE
                V           
                PAYMENTS
                TO CERTIFICATEHOLDERS

            
	 	 
	
              SECTION
                5.01

            	
              Distributions.

            
	
              SECTION
                5.02

            	
              Statements
                to Certificateholders.

            
	
              SECTION
                5.03

            	
              Servicer
                Reports; P&I Advances.

            
	
              SECTION
                5.04

            	
              Allocation
                of Realized Losses.

            
	
              SECTION
                5.05

            	
              Compliance
                with Withholding Requirements.

            
	
              SECTION
                5.06

            	
              Reports
                Filed with Securities and Exchange Commission.

            
	
              ARTICLE
                VI

            	
              THE
                CERTIFICATES

            
	
              SECTION
                6.01

            	
              The
                Certificates.

            
	
              SECTION
                6.02

            	
              Registration
                of Transfer and Exchange of Certificates.

            
	
              SECTION
                6.03

            	
              Mutilated,
                Destroyed, Lost or Stolen Certificates.

            
	
              SECTION
                6.04

            	
              Persons
                Deemed Owners.

            
	
              SECTION
                6.05

            	
              Certain
                Available Information.

            
	
              ARTICLE
                VII

            	
              THE
                DEPOSITOR, OCWEN, WELLS FARGO AND THE MASTER SERVICER

            
	
              SECTION
                7.01

            	
              Liability
                of the Depositor, Ocwen, Wells Fargo and the Master
                Servicer.

            
	
              SECTION
                7.02

            	
              Merger
                or Consolidation of the Depositor, Ocwen, Wells Fargo or the Master
                Servicer.

            
	
              SECTION
                7.03

            	
              Limitation
                on Liability of the Depositor, Ocwen, Wells Fargo, the Master Servicer
                and
                Others.

            
	
              SECTION
                7.04

            	
              Limitation
                on Resignation of Ocwen and Wells Fargo.

            
	
              SECTION
                7.05

            	
              Limitation
                on Resignation of the Master Servicer.

            
	
              SECTION
                7.06

            	
              Assignment
                of Master Servicing.

            
	
              SECTION
                7.07

            	
              Rights
                of the Depositor in Respect of Ocwen, Wells Fargo and the Master
                Servicer.

            
	
              SECTION
                7.08

            	
              Duties
                of the Credit Risk Manager.

            
	
              SECTION
                7.09

            	
              Limitation
                Upon Liability of the Credit Risk Manager.

            
	
              SECTION
                7.10

            	
              Removal
                of the Credit Risk Manager.

            
	
              SECTION
                7.11

            	
              Transfer
                of Servicing by Sponsor.

            
	 	 
	
              ARTICLE
                VIII           
                DEFAULT

            
	 	 
	
              SECTION
                8.01

            	
              Servicer
                Events of Default.

            
	
              SECTION
                8.02

            	
              Master
                Servicer to Act; Appointment of Successor.

            
	
              SECTION
                8.03

            	
              Notification
                to Certificateholders.

            
	
              SECTION
                8.04

            	
              Waiver
                of Servicer Events of Default.

            
	 	 
	
              ARTICLE
                IX           
                CONCERNING
                THE TRUSTEE AND THE SECURITIES ADMINISTRATOR

            
	 	 
	
              SECTION
                9.01

            	
              Duties
                of Trustee and Securities Administrator.

            
	
              SECTION
                9.02

            	
              Certain
                Matters Affecting Trustee and Securities Administrator.

            
	
              SECTION
                9.03

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

            
	
              SECTION
                9.04

            	
              Trustee
                and Securities Administrator May Own Certificates.

            
	
              SECTION
                9.05

            	
              Fees
                and Expenses of Trustee, Custodians and Securities
                Administrator.

            
	
              SECTION
                9.06

            	
              Eligibility
                Requirements for Trustee and Securities Administrator.

            
	
              SECTION
                9.07

            	
              Resignation
                and Removal of Trustee and Securities Administrator.

            
	
              SECTION
                9.08

            	
              Successor
                Trustee or Securities Administrator.

            
	
              SECTION
                9.09

            	
              Merger
                or Consolidation of Trustee or Securities
                Administrator.

            
	
              SECTION
                9.10

            	
              Appointment
                of Co-Trustee or Separate Trustee.

            
	
              SECTION
                9.11

            	
              Appointment
                of Office or Agency.

            
	
              SECTION
                9.12

            	
              Representations
                and Warranties.

            
	 	 
	
              ARTICLE
                X           
                TERMINATION

            
	 	 
	
              SECTION
                10.01

            	
              Termination

                Upon Repurchase or Liquidation of All Mortgage Loans.

            
	
              SECTION
                10.02

            	
              Additional
                Termination Requirements.

            
	 	 
	
              ARTICLE
                XI           
                REMIC
                PROVISIONS

            
	 	 
	
              SECTION
                11.01

            	
              REMIC
                Administration.

            
	
              SECTION
                11.02

            	
              Prohibited
                Transactions and Activities.

            
	
              SECTION
                11.03

            	
              Indemnification.

            
	 	 
	
              ARTICLE
                XII           
                MISCELLANEOUS
                PROVISIONS

            
	 	 
	
              SECTION
                12.01

            	
              Amendment.

            
	
              SECTION
                12.02

            	
              Recordation
                of Agreement; Counterparts.

            
	
              SECTION
                12.03

            	
              Limitation
                on Rights of Certificateholders.

            
	
              SECTION
                12.04

            	
              Governing
                Law.

            
	
              SECTION
                12.05

            	
              Notices.

            
	
              SECTION
                12.06

            	
              Severability
                of Provisions.

            
	
              SECTION
                12.07

            	
              Notice
                to Rating Agencies.

            
	
              SECTION
                12.08

            	
              Article
                and Section References.

            
	
              SECTION
                12.09

            	
              Grant
                of Security Interest.

            
	
              SECTION
                12.10

            	
              Survival
                of Indemnification.

            
	
              SECTION
                12.11

            	
              Servicing
                Agreement.

            
	
              SECTION
                12.12

            	
              Intention
                of the Parties and Interpretation.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Exhibits

     

    
      	
              Exhibit
                A-1

            	
              Form
                of Class A Certificate

            
	
              Exhibit
                A-2

            	
              Form
                of Class M Certificate

            
	
              Exhibit
                A-3

            	
              Form
                of Class CE-1 Certificate

            
	
              Exhibit
                A-4

            	
              Form
                of Class CE-2 Certificate

            
	
              Exhibit
                A-5

            	
              Form
                of Class P Certificate

            
	
              Exhibit
                A-6

            	
              Form
                of Class R Certificate

            
	
              Exhibit
                B-1

            	
              Form
                of Transferor Representation Letter and Form of Transferee Representation
                Letter in Connection with Transfer of the Class CE-1 Certificates,
                Class
                CE-2 Certificates, Class P Certificates and Residual Certificates
                Pursuant
                to Rule 144A Under the Securities Act

            
	
              Exhibit
                B-2

            	
              Form
                of Transferor Representation Letter and Form of Transferee Representation
                Letter in Connection with Transfer of the Class CE-1 Certificates,
                Class
                CE-2 Certificates, Class P Certificates and Residual Certificates
                Pursuant
                to Rule 501 (a) Under the Securities Act

            
	
              Exhibit
                B-3

            	
              Form
                of Transfer Affidavit and Agreement and Form of Transferor Affidavit
                in
                Connection with Transfer of Residual Certificates

            
	
              Exhibit
                C

            	
              Form
                of Back-Up Certification

            
	
              Exhibit
                D

            	
              Form
                of Power of Attorney

            
	
              Exhibit
                E

            	
              Servicing
                Criteria

            
	
              Exhibit
                F

            	
              Mortgage
                Loan Purchase Agreement

            
	
              Exhibit
                G

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

            
	
              Exhibit
                H

            	
              Additional
                Disclosure Notification

            
	
              Exhibit
                I

            	
              Assignment,
                Assumption and Recognition Agreement and Servicing
                Agreement

            
	 	 
	
              Schedule
                1

            	
              Mortgage
                Loan Schedule

            
	
              Schedule
                2

            	
              Prepayment
                Charge Schedule

            
	
              Schedule
                3

            	
              Standard
                File Layout - Delinquency Reporting

            
	
              Schedule
                4

            	
              Standard
                File Layout - Master Servicing

            
	
              Schedule
                5

            	
              Standard
                File Layout - Simple Interest Mortgage Loans

            
	
              Schedule
                6

            	
              Servicing
                Advance Schedule

            

    

    

     

    This
      Pooling and Servicing Agreement, is dated and effective as of May 31, 2006,
      among ACE SECURITIES CORP., as Depositor, OCWEN LOAN SERVICING, LLC, as a
      Servicer, WELLS FARGO BANK, NATIONAL ASSOCIATION, as a Servicer, WELLS FARGO
      BANK, NATIONAL ASSOCIATION, as Master Servicer and Securities Administrator
      and
      HSBC BANK USA, NATIONAL ASSOCIATION, as Trustee.

     

    PRELIMINARY
      STATEMENT:

     

    The
      Depositor intends to sell pass-through certificates to be issued hereunder
      in
      multiple classes, which in the aggregate will evidence the entire beneficial
      ownership interest of the Trust Fund created hereunder. The Trust Fund will
      consist of a segregated pool of assets comprised of the Mortgage Loans and
      certain other related assets subject to this Agreement.

     

    REMIC
      I

     

    As
      provided herein, the Securities Administrator will elect to treat the segregated
      pool of assets consisting of the Mortgage Loans and certain other related assets
      subject to this Agreement (other than the Reserve Fund) as a REMIC for federal
      income tax purposes, and such segregated pool of assets will be designated
      as
“REMIC I”. The Class R-I Interest will be the sole class of “residual interests”
in REMIC I for purposes of the REMIC Provisions (as defined herein). The
      following table irrevocably sets forth the designation, the REMIC I Remittance
      Rate, the initial Uncertificated Balance and, for purposes of satisfying
      Treasury regulation Section 1.860G-1(a)(4)(iii), the “latest possible
      maturity date” for each of the REMIC I Regular Interests (as defined herein).
      None of the REMIC I Regular Interests will be certificated.

     

    

      
        	
                Designation

              	 	
                REMIC
                  I

                Remittance
                  Rate

              	 	
                Initial

                Uncertificated
                  Balance

              	 	
                Latest
                  Possible

                Maturity
                  Date (1)

              
	
                I-LTAA

              	 	
                Variable(2)

              	 	
                $

              	
                142,256,013.86
                  

              	 	
                December
                  2045

              
	
                I-LTA

              	 	
                Variable(2)

              	 	
                $

              	
                995,070.00
                  

              	 	
                December
                  2045

              
	
                I-LTM1

              	 	
                Variable(2)

              	 	
                $

              	
                181,450.00
                  

              	 	
                December
                  2045

              
	
                I-LTM2

              	 	
                Variable(2)

              	 	
                $

              	
                116,130.00
                  

              	 	
                December
                  2045

              
	
                I-LTM3

              	 	
                Variable(2)

              	 	
                $

              	
                48,630.00
                  

              	 	
                December
                  2045

              
	
                I-LTM4

              	 	
                Variable(2)

              	 	
                $

              	
                23,950.00
                  

              	 	
                December
                  2045

              
	
                I-LTM5

              	 	
                Variable(2)

              	 	
                $

              	
                22,500.00
                  

              	 	
                December
                  2045

              
	
                I-LTZZ

              	 	
                Variable(2)

              	 	
                $

              	
                1,515,453.96
                  

              	 	
                December
                  2045

              
	
                I-LTP

              	 	
                Variable(2)

              	 	
                $

              	
                100.00
                  

              	 	
                December
                  2045

              
	
                I-LTCE2

              	 	
                Variable(2)

              	 	 	
                N/A(3)

              	 	
                December
                  2045

              

      

       

    

     ________________

    
      	
              (1)

            	
              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 has been designated as the “latest
                possible maturity date” for each REMIC I Regular
                Interest.

            

    

     

    
      	
              (2)

            	
              Calculated
                in accordance with the definition of “REMIC I Remittance Rate”
                herein.

            

    

     

    
      	
              (3)

            	
              REMIC
                I Regular Interest I-LTCE2 will not have an Uncertificated Balance,
                but
                will accrue interest on its Notional Amount calculated in accordance
                with
                the definition of “REMIC I Remittance Rate”
                herein.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    REMIC
      II

     

    As
      provided herein, the Securities Administrator will elect to treat the segregated
      pool of assets consisting of the REMIC I Regular Interests as a REMIC for
      federal income tax purposes, and such segregated pool of assets will be
      designated as “REMIC II.” The Class R-II Interest will evidence the sole class
      of “residual interests” in REMIC II for purposes of the REMIC Provisions. The
      following table irrevocably sets forth the designation, the Pass-Through Rate,
      the initial aggregate Certificate Principal Balance and, for purposes of
      satisfying Treasury regulation Section 1.860G-1(a)(4)(iii), the “latest
      possible maturity date” for the indicated Classes of Certificates.

     

    

      
        	
                Designation

              	 	
                Pass-Through
                  Rate

              	 	
                Initial
                  Aggregate

                Certificate
                  Principal Balance

              	 	
                Latest
                  Possible

                Maturity
                  Date (1)

              
	
                Class
                  A

              	 	
                Variable(2)

              	 	
                $

              	
                99,507,000.00

              	 	
                December
                  2045

              
	
                Class
                  M-1

              	 	
                Variable(2)

              	 	
                $

              	
                18,145,000.00

              	 	
                December
                  2045

              
	
                Class
                  M-2

              	 	
                Variable(2)

              	 	
                $

              	
                11,613,000.00

              	 	
                December
                  2045

              
	
                Class
                  M-3

              	 	
                Variable(2)

              	 	
                $

              	
                4,863,000.00

              	 	
                December
                  2045

              
	
                Class
                  M-4

              	 	
                Variable(2)

              	 	
                $

              	
                2,395,000.00

              	 	
                December
                  2045

              
	
                Class
                  M-5

              	 	
                Variable(2)

              	 	
                $

              	
                2,250,000.00

              	 	
                December
                  2045

              
	
                Class
                  P

              	 	
                N/A(3)

              	 	
                $

              	
                100.00

              	 	
                December
                  2045

              
	
                Class
                  CE-1

              	 	
                N/A(4)

              	 	
                $

              	
                6,386,197.82

              	 	
                December
                  2045

              
	
                Class
                  CE-2

              	 	
                N/A(5)

              	 	 	
                N/A(6)

              	 	
                December
                  2045

              

      

    

     

    ________________

    
      	(1)	
              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 has been designated as the “latest
                possible maturity date” for each Class of
                Certificates.

            

    

     

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

            

    

     

    
      	(3)	
              The
                Class P Certificates will not accrue
                interest.

            

    

     

    
      	(4)	
              The
                Class CE-1 Certificates will accrue interest at their variable
                Pass-Through Rate on the Notional Amount of the Class CE-1 Certificates
                outstanding from time to time which shall equal the Uncertificated
                Balance
                of the REMIC I Regular Interests (other than REMIC I Regular Interest
                I-LTP). The Class CE-1 Certificates will not accrue interest on their
                Certificate Principal Balance.

            

    

     

    
      	(5)	
              The
                Class CE-2 Certificates are an interest only class and for each
                Distribution Date the Class CE-2 Certificates will be entitled to
                receive
                100% of the amounts distributed on REMIC I Regular Interest
                I-LTCE2.

            

    

     

    
      	(6)	
              For
                federal income tax purposes, the Class CE-2 Certificates will not
                have a
                Certificate Principal Balance, but will have a Notional Amount equal
                to
                the Notional Amount of REMIC I Regular Interest
                I-LTCE2.

            

    

     

    

    As
      of the
      Cut-off Date, the Mortgage Loans had an aggregate Scheduled Principal Balance
      equal to $145,159,297.82.

     

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

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ARTICLE
      I

     

    DEFINITIONS

     

    SECTION
      1.01  Defined
      Terms.

     

    Whenever
      used in this Agreement, including, without limitation, in the Preliminary
      Statement hereto, the following words and phrases, unless the context otherwise
      requires, shall have the meanings specified in this Article. Unless otherwise
      specified, all calculations described herein shall be made on the basis of
      a
      360-day year consisting of twelve 30-day months.

     

    “60-day
      Delinquent Mortgage Loan”: With respect to any Mortgage Loan or any date of
      determination, the excess, if any, of (i) the number of days the most delinquent
      Monthly Payment for such Mortgage Loan was delinquent as of the close of
      business on the last day of the related Due Period minus (ii) the number of
      days
      the most delinquent Monthly Payment for such Mortgage Loan was delinquent as
      of
      the close of business on the Cut-off Date, is greater than or equal to
      60.

     

    “Accepted
      Master Servicing Practices”: With respect to any Mortgage Loan, as applicable,
      either (x) those customary mortgage master servicing practices of prudent
      mortgage servicing institutions that master service mortgage loans of the same
      type and quality as such Mortgage Loan in the jurisdiction where the related
      Mortgaged Property is located, to the extent applicable to the Master Servicer
      (except in its capacity as successor to a Servicer (other than Wells Fargo)),
      or
      (y) as provided in Section 3.01 hereof, but in no event below the standard
      set forth in clause (x).

     

    “Accepted
      Servicing Practices”: As defined in Section 3.01.

     

    “Account”:
      The Collection Accounts and the Distribution Account as the context may
      require.

     

    “Accrued
      Certificate Interest”: With respect to any Class A, Mezzanine, Class CE-1 or
      Class CE-2 Certificate and each Distribution Date, interest accrued during
      the
      related Interest Accrual Period at the Pass-Through Rate for such Certificate
      for such Distribution Date on the Certificate Principal Balance, in the case
      of
      the Class A Certificates and the Mezzanine Certificates, or on the Notional
      Amount in the case of the Class CE-1 Certificates and the Class CE-2
      Certificates, of such Certificate immediately prior to such Distribution Date.
      The Class P Certificates are not entitled to distributions in respect of
      interest and, accordingly, will not accrue interest. All distributions of
      interest on the Class A Certificates and the Mezzanine Certificates will be
      calculated on the basis of a 360-day year and the actual number of days in
      the
      applicable Interest Accrual Period. All distributions of interest on the Class
      CE-1 Certificates and Class CE-2 Certificates will be based on a 360 day year
      consisting of twelve 30 day months. Accrued Certificate Interest with respect
      to
      each Distribution Date, as to any Class A, Mezzanine or Class CE-1 Certificate
      shall be reduced by an amount equal to the portion allocable to such Certificate
      pursuant to Section 1.02 hereof, if any, of the sum of (a) the aggregate
      Prepayment Interest Shortfall, if any, for such Distribution Date to the extent
      not covered by payments pursuant to Section 3.22 or Section 4.19 of
      this Agreement or pursuant to the Servicing Agreement and (b) the aggregate
      amount of any Relief Act Interest Shortfall, if any, for such Distribution
      Date.
      In addition, Accrued Certificate Interest with respect to each Distribution
      Date, as to any Class CE-1 Certificate, shall be reduced by an amount equal
      to
      the portion allocable to such Class CE-1 Certificate of Realized Losses, if
      any,
      pursuant to Section 1.02 and Section 5.04 hereof.

     

    “Additional
      Disclosure Notification”: Has the meaning set forth in Section 5.06(a)(ii).

     

    “Additional
      Form 10-D Disclosure”: Has the meaning set forth in Section 5.06(a) of this
      Agreement.

     

    “Additional
      Form 10-K Disclosure”: Has the meaning set forth in Section 5.06(d) of this
      Agreement.

     

    “Additional
      Servicer”: Means each affiliate of a Servicer that Services any of the Mortgage
      Loans and each Person who is not an affiliate of a Servicer that Services the
      Mortgage Loans. For clarification purposes, the Master Servicer and the
      Securities Administrator are Additional Servicers.

     

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

     

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

     

    “Administration
      Fees”: The sum of (i) the Servicing Fee, (ii) the Master Servicing Fee and (iii)
      the Credit Risk Management Fee.

     

    “Administration
      Fee Rate”: The sum of (i) the Servicing Fee Rate, (ii) the Master Servicing Fee
      Rate and (iii) the Credit Risk Management Fee Rate.

     

    “Advance
      Facility”: As defined in Section 3.25(a).

     

    “Advance
      Financing Person”: As defined in Section 3.25(a).

     

    “Advance
      Reimbursement Amounts”: As defined in Section 3.25(b).

     

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

     

    “Aggregate
      Loss Severity Percentage”: With respect to any Distribution Date, the percentage
      equivalent of a fraction, the numerator of which is the aggregate amount of
      Realized Losses incurred on any Mortgage Loans from the Cut-off Date to the
      last
      day of the preceding calendar month and the denominator of which is the
      aggregate principal balance of such Mortgage Loans immediately prior to the
      liquidation of such Mortgage Loans.

     

    “Agreement”:
      This Pooling and Servicing Agreement, including all exhibits and schedules
      hereto and all amendments hereof and supplements hereto.

     

    “Allocated
      Realized Loss Amount”: With respect to any Class of Mezzanine Certificates and
      any Distribution Date, an amount equal to the sum of any Realized Loss allocated
      to that Class of Certificates on the Distribution Date pursuant to
      Section 5.04 and any Allocated Realized Loss Amount for that Class
      remaining unpaid from the previous Distribution Date.

     

    “Amounts
      Held for Future Distribution”: As to any Distribution Date, the aggregate amount
      held in the Custodial Account and the Collection Accounts at the close of
      business on the immediately preceding Determination Date on account of (i)
      all
      Monthly Payments or portions thereof received in respect of the related Mortgage
      Loans due after the related Due Period and (ii) Principal Prepayments and
      Liquidation Proceeds received in respect of such Mortgage Loans after the last
      day of the related Prepayment Period.

     

    “Annual
      Statement of Compliance”: As defined in Section 3.17.

     

    “Arrearages”:
      With respect to each Mortgage Loan, the amount, if any, equal to the interest
      portion of the payments due on such Mortgage Loan on or prior to the Cut-off
      Date but not yet received by the related Servicer by such date, as shown on
      the
      Mortgage Loan Schedule.

     

    “Assignment”:
      An assignment of Mortgage, notice of transfer or equivalent instrument, in
      recordable form, which is sufficient under the laws of the jurisdiction wherein
      the related Mortgaged Property is located to reflect of record the sale and
      assignment of the Mortgage, which assignment, notice of transfer or equivalent
      instrument may be in the form of one or more blanket assignments covering
      Mortgages secured by Mortgaged Properties located in the same county, if
      permitted by law.

     

    “Assignment
      Agreement”: The Assignment, Assumption and Recognition Agreement, dated as of
      June 26, 2006, by and among the Sponsor, the Depositor and SPS evidencing
      the assignment of the Servicing Agreement, to the extent of the servicing of
      the
      SPS Mortgage Loans, to the Depositor.

     

    “Authorized
      Officers”: A managing director of the whole loan trading desk and a managing
      director in global markets.

     

    “Available
      Distribution Amount”: With respect to any Distribution Date, an amount equal to
      (1) the sum of (a) the aggregate of the amounts on deposit in the Custodial
      Account, the Collection Accounts and the Distribution Account as of the close
      of
      business on the related Servicer Remittance Date, (b) the aggregate of any
      amounts deposited in the Distribution Account by the Servicers or the Master
      Servicer in respect of Prepayment Interest Shortfalls for such Distribution
      Date
      pursuant to Section 3.22 or Section 4.19 of this Agreement or pursuant
      to the Servicing Agreement, (c) the aggregate of any P&I Advances for such
      Distribution Date made by the Servicers pursuant to Section 5.03 of this
      Agreement or pursuant to the Servicing Agreement and (d) the aggregate of any
      P&I Advances made by a successor Servicer (including the Master Servicer or
      the Trustee) for such Distribution Date pursuant to Section 8.02 of this
      Agreement or the Servicing Agreement, reduced (to an amount not less than zero)
      by (2) the portion of the amount described in clause (1)(a) above that
      represents (i) Amounts Held for Future Distribution, (ii) Principal Prepayments
      on the Mortgage Loans received after the related Prepayment Period (together
      with any interest payments received with such Principal Prepayments to the
      extent they represent the payment of interest accrued on the Mortgage Loans
      during a period subsequent to the related Prepayment Period), (iii) Liquidation
      Proceeds, Insurance Proceeds and Subsequent Recoveries received in respect
      of
      the Mortgage Loans after the related Prepayment Period, (iv) amounts
      reimbursable or payable to the Depositor, the Servicers, the Trustee, the Master
      Servicer, the Securities Administrator, the Custodians or the Credit Risk
      Manager pursuant to Section 3.09 or Section 9.05 of this Agreement or
      otherwise payable in respect of Extraordinary Trust Fund Expenses or
      reimbursable or payable under the Servicing Agreement, (v) the Credit Risk
      Management Fee, (vi) amounts deposited in the Custodial Account, a Collection
      Account or the Distribution Account in error, (vii) the amount of any Prepayment
      Charges collected by the Servicers in connection with the Principal Prepayment
      of any of the Mortgage Loans and (viii) amounts reimbursable to a successor
      Servicer (including the Master Servicer or the Trustee) pursuant to
      Section 8.02 of this Agreement or pursuant to the Servicing
      Agreement.

     

    “Balloon
      Mortgage Loan”: A Mortgage Loan that provides for the payment of the unamortized
      principal balance of such Mortgage Loan in a single payment, that is
      substantially greater than the preceding monthly payment at the maturity of
      such
      Mortgage Loan.

     

    “Balloon
      Payment”: A payment of the unamortized principal balance of a Mortgage Loan in a
      single payment, that is substantially greater than the preceding Monthly Payment
      at the maturity of such Mortgage Loan.

     

    “Bankruptcy
      Code”: The Bankruptcy Reform Act of 1978 (Title 11 of the United States Code),
      as amended.

     

    “Book-Entry
      Certificates”: The Offered Certificates for so long as the Certificates of such
      Class shall be registered in the name of the Depository or its
      nominee.

     

    “Book-Entry
      Custodian”: The custodian appointed pursuant to Section 6.01.

     

    “Business
      Day”: Any day other than a Saturday, a Sunday or a day on which banking or
      savings and loan institutions in the States of New York, Florida, Maryland,
      Minnesota, Utah or in the city in which the Corporate Trust Office of the
      Trustee is located, are authorized or obligated by law or executive order to
      be
      closed.

     

    “Cash-Out
      Refinancing”: A Refinanced Mortgage Loan the proceeds of which are more than a
      nominal amount in excess of the principal balance of any existing first mortgage
      plus any subordinate mortgage on the related Mortgaged Property and related
      closing costs.

     

    “Certificate”:
      Any one of ACE Securities Corp., Asset Backed Pass-Through Certificates, Series
      2006-SD2, Class A, Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class
      CE-1, Class CE-2, Class P and Class R issued under this Agreement.

     

    “Certificate
      Factor”: With respect to any Class of Certificates (other than the Residual
      Certificates) as of any Distribution Date, a fraction, expressed as a decimal
      carried to six places, the numerator of which is the aggregate Certificate
      Principal Balance (or Notional Amount, in the case of the Class CE-1
      Certificates and Class CE-2 Certificates) of such Class of Certificates on
      such
      Distribution Date (after giving effect to any distributions of principal and
      allocations of Realized Losses resulting in reduction of the Certificate
      Principal Balance (or Notional Amount, in the case of the Class CE-1
      Certificates and Class CE-2 Certificates) of such Class of Certificates to
      be
      made on such Distribution Date), and the denominator of which is the initial
      aggregate Certificate Principal Balance (or Notional Amount, in the case of
      the
      Class CE-1 Certificates and Class CE-2 Certificates) of such Class of
      Certificates as of the Closing Date.

     

    “Certificate
      Margin”: With respect to the Class A Certificates and, for purposes of the
      definition of “Marker Rate”, REMIC I Regular Interest I-LTA, 0.300% in the case
      of each Distribution Date through and including the Optional Termination Date
      and 0.600% in the case of each Distribution Date thereafter.

     

    With
      respect to the Class M-1 Certificates and, for purposes of the definition of
      “Marker Rate”, REMIC I Regular Interest I-LTM1, 0.550% in the case of each
      Distribution Date through and including the Optional Termination Date and 0.825%
      in the case of each Distribution Date thereafter.

     

    With
      respect to the Class M-2 Certificates and, for purposes of the definition of
      “Marker Rate”, REMIC I Regular Interest I-LTM2, 1.350% in the case of each
      Distribution Date through and including the Optional Termination Date and 1.850%
      in the case of each Distribution Date thereafter.

     

    With
      respect to the Class M-3 Certificates and, for purposes of the definition of
      “Marker Rate”, REMIC I Regular Interest I-LTM3, 2.500% in the case of each
      Distribution Date through and including the Optional Termination Date and 3.000%
      in the case of each Distribution Date thereafter.

     

    With
      respect to the Class M-4 Certificates and, for purposes of the definition of
      “Marker Rate”, REMIC I Regular Interest I-LTM4, 2.500% in the case of each
      Distribution Date through and including the Optional Termination Date and 3.000%
      in the case of each Distribution Date thereafter.

     

    With
      respect to the Class M-5 Certificates and, for purposes of the definition of
      “Marker Rate”, REMIC I Regular Interest I-LTM5, 2.500% in the case of each
      Distribution Date through and including the Optional Termination Date and 3.000%
      in the case of each Distribution Date thereafter.

     

    “Certificateholder”
      or “Holder”: The Person in whose name a Certificate is registered in the
      Certificate Register, except that a Disqualified Organization or a Non-United
      States Person shall not be a Holder of a Residual Certificate for any purposes
      hereof, and solely for the purposes of giving any consent pursuant to this
      Agreement, any Certificate registered in the name of or beneficially owned
      by
      the Depositor, the Sponsor, a Servicer, the Master Servicer, the Securities
      Administrator, the Trustee or any Affiliate thereof shall be deemed not to
      be
      outstanding and the Voting Rights to which it is entitled shall not be taken
      into account in determining whether the requisite percentage of Voting Rights
      necessary to effect any such consent has been obtained, except as otherwise
      provided in Section 12.01 of this Agreement. The Trustee and the Securities
      Administrator may conclusively rely upon a certificate of the Depositor, the
      Sponsor, the Master Servicer, the Securities Administrator or a Servicer in
      determining whether a Certificate is held by an Affiliate thereof. All
      references herein to “Holders” or “Certificateholders” shall reflect the rights
      of Certificate Owners as they may indirectly exercise such rights through the
      Depository and participating members thereof, except as otherwise specified
      herein; provided, however, that the Trustee and the Securities Administrator
      shall be required to recognize as a “Holder” or “Certificateholder” only the
      Person in whose name a Certificate is registered in the Certificate
      Register.

     

    “Certificate
      Owner”: With respect to a Book-Entry Certificate, the Person who is the
      beneficial owner of such Certificate as reflected on the books of the Depository
      or on the books of a Depository Participant or on the books of an indirect
      participating brokerage firm for which a Depository Participant acts as
      agent.

     

    “Certificate
      Principal Balance”: With respect to each Class A, Mezzanine or Class P
      Certificate as of any date of determination, the Certificate Principal Balance
      of such Certificate on the Distribution Date immediately prior to such date
      of
      determination plus any Subsequent Recoveries added to the Certificate Principal
      Balance of such Certificate pursuant to Section 5.04 of this Agreement,
      minus all distributions allocable to principal made thereon and Realized Losses
      allocated thereto, if any, on such immediately prior Distribution Date (or,
      in
      the case of any date of determination up to and including the first Distribution
      Date, the initial Certificate Principal Balance of such Certificate, as stated
      on the face thereof). With respect to each Class CE-1 Certificate as of any
      date
      of determination, an amount equal to the Percentage Interest evidenced by such
      Certificate times the excess, if any, of (A) the then aggregate Uncertificated
      Balances of the REMIC I Regular Interests over (B) the then aggregate
      Certificate Principal Balances of the Class A, Mezzanine and Class P
      Certificates then outstanding. The aggregate initial Certificate Principal
      Balance of each Class of Regular Certificates is set forth in the Preliminary
      Statement hereto.

     

    “Certificate
      Register”: The register maintained pursuant to Section 6.02 of this
      Agreement.

     

    “Certification
      Parties”: Has the meaning set forth in Section 3.19 of this
      Agreement.

     

    “Certifying
      Person”: Has the meaning set forth in Section 3.19 of this
      Agreement.

     

    “Class”:
      Collectively, all of the Certificates bearing the same class
      designation.

     

    “Class
      A
      Certificate”: Any one of the Class A Certificates executed and authenticated by
      the Securities Administrator and delivered by the Trustee, substantially in
      the
      form annexed hereto as Exhibit A-1 and evidencing a Regular Interest in REMIC
      II
      for purposes of the REMIC Provisions.

     

    “Class
      A
      Principal Distribution Amount”: With respect to any Distribution Date on or
      after the Stepdown Date and on which a Trigger Event is not in effect, the
      excess of (x) the Certificate Principal Balance of the Class A Certificates
      immediately prior to such Distribution Date over (y) the lesser of (A) the
      product of (i) 35.70% and (ii) the aggregate Scheduled Principal Balance of
      the
      Mortgage Loans as of the last day of the related Due Period (after giving effect
      to scheduled payments of principal due during the related Due Period, to the
      extent received or advanced and unscheduled collections of principal received
      during the related Prepayment Period) and (B) the aggregate Scheduled Principal
      Balance of the Mortgage Loans as of the last day of the related Due Period
      (after giving effect to scheduled payments of principal due during the related
      Due Period, to the extent received or advanced and unscheduled collections
      of
      principal received during the related Prepayment Period) minus the product
      of
      (i) 0.50% and (ii) the aggregate principal balance of the Mortgage Loans as
      of
      the Cut-off Date.

     

    “Class
      CE-1 Certificate”: Any one of the Class CE-1 Certificates executed and
      authenticated by the Securities Administrator and delivered by the Trustee,
      substantially in the form annexed hereto as Exhibit A-3 and evidencing a Regular
      Interest in REMIC II for purposes of the REMIC Provisions.

     

    “Class
      CE-2 Certificate”: Any one of the Class CE-2 Certificates executed and
      authenticated by the Securities Administrator and delivered by the Trustee,
      substantially in the form annexed hereto as Exhibit A-4 and evidencing a Regular
      Interest in REMIC II for purposes of the REMIC Provisions.

     

    “Class
      M-1 Certificate”: Any one of the Class M-1 Certificates executed and
      authenticated by the Securities Administrator and delivered by the Trustee,
      substantially in the form annexed hereto as Exhibit A-2 and evidencing a Regular
      Interest in REMIC II for purposes of the REMIC Provisions.

     

    “Class
      M-1 Principal Distribution Amount”: With respect to any Distribution Date on or
      after the Stepdown Date and on which a Trigger Event is not in effect, the
      excess of (x) the sum of (i) the Certificate Principal Balance of the Class
      A
      Certificates (after taking into account the payment of the Class A Principal
      Distribution Amount on such Distribution Date) and (ii) the Certificate
      Principal Balance of the Class M-1 Certificates immediately prior to such
      Distribution Date over (y) the lesser of (A) the product of (i) 60.70% and
      (ii)
      the aggregate Scheduled Principal Balance of the Mortgage Loans as of the last
      day of the related Due Period (after giving effect to scheduled payments of
      principal due during the related Due Period, to the extent received or advanced
      and unscheduled collections of principal received during the related Prepayment
      Period) and (B) the aggregate Scheduled Principal Balance of the Mortgage Loans
      as of the last day of the related Due Period (after giving effect to scheduled
      payments of principal due during the related Due Period, to the extent received
      or advanced and unscheduled collections of principal received during the related
      Prepayment Period) minus the product of (i) 0.50% and (ii) the aggregate
      principal balance of the Mortgage Loans as of the Cut-off Date.

     

    “Class
      M-2 Certificate”: Any one of the Class M-2 Certificates executed and
      authenticated by the Securities Administrator and delivered by the Trustee,
      substantially in the form annexed hereto as Exhibit A-2 and evidencing a Regular
      Interest in REMIC II for purposes of the REMIC Provisions.

     

    “Class
      M-2 Principal Distribution Amount”: With respect to any Distribution Date on or
      after the Stepdown Date and on which a Trigger Event is not in effect, the
      excess of (x) the sum of (i) the Certificate Principal Balance of the Class
      A
      Certificates (after taking into account the payment of the Class A Principal
      Distribution Amount on such Distribution Date), (ii) the Certificate Principal
      Balance of the Class M-1 Certificates (after taking into account the payment
      of
      the Class M-1 Principal Distribution Amount on such Distribution Date) and
      (iii)
      the Certificate Principal Balance of the Class M-2 Certificates immediately
      prior to such Distribution Date over (y) the lesser of (A) the product of (i)
      76.70% and (ii) the aggregate Scheduled Principal Balance of the Mortgage Loans
      as of the last day of the related Due Period (after giving effect to scheduled
      payments of principal due during the related Due Period, to the extent received
      or advanced and unscheduled collections of principal received during the related
      Prepayment Period) and (B) the aggregate Scheduled Principal Balance of the
      Mortgage Loans as of the last day of the related Due Period (after giving effect
      to scheduled payments of principal due during the related Due Period, to the
      extent received or advanced and unscheduled collections of principal received
      during the related Prepayment Period) minus the product of (i) 0.50% and (ii)
      the aggregate principal balance of the Mortgage Loans as of the Cut-off
      Date.

     

    “Class
      M-3 Certificate”: Any one of the Class M-3 Certificates executed and
      authenticated by the Securities Administrator and delivered by the Trustee,
      substantially in the form annexed hereto as Exhibit A-2 and evidencing a Regular
      Interest in REMIC II for purposes of the REMIC Provisions.

     

    “Class
      M-3 Principal Distribution Amount”: With respect to any Distribution Date on or
      after the Stepdown Date and on which a Trigger Event is not in effect, the
      excess of (x) the sum of (i) the Certificate Principal Balance of the Class
      A
      Certificates (after taking into account the payment of the Class A Principal
      Distribution Amount on such Distribution Date), (ii) the Certificate Principal
      Balance of the Class M-1 Certificates (after taking into account the payment
      of
      the Class M-1 Principal Distribution Amount on such Distribution Date), (iii)
      the Certificate Principal Balance of the Class M-2 Certificates (after taking
      into account the payment of the Class M-2 Principal Distribution Amount on
      such
      Distribution Date) and (iv) the Certificate Principal Balance of the Class
      M-3
      Certificates immediately prior to such Distribution Date over (y) the lesser
      of
      (A) the product of (i) 83.40% and (ii) the aggregate Scheduled Principal Balance
      of the Mortgage Loans as of the last day of the related Due Period (after giving
      effect to scheduled payments of principal due during the related Due Period,
      to
      the extent received or advanced and unscheduled collections of principal
      received during the related Prepayment Period) and (B) the aggregate Scheduled
      Principal Balance of the Mortgage Loans as of the last day of the related Due
      Period (after giving effect to scheduled payments of principal due during the
      related Due Period, to the extent received or advanced and unscheduled
      collections of principal received during the related Prepayment Period) minus
      the product of (i) 0.50% and (ii) the aggregate principal balance of the
      Mortgage Loans as of the Cut-off Date.

     

    “Class
      M-4 Certificate”: Any one of the Class M-4 Certificates executed and
      authenticated by the Securities Administrator and delivered by the Trustee,
      substantially in the form annexed hereto as Exhibit A-2 and evidencing a Regular
      Interest in REMIC II for purposes of the REMIC Provisions.

     

    “Class
      M-4 Principal Distribution Amount”: With respect to any Distribution Date on or
      after the Stepdown Date and on which a Trigger Event is not in effect, the
      excess of (x) the sum of (i) the Certificate Principal Balance of the Class
      A
      Certificates (after taking into account the payment of the Class A Principal
      Distribution Amount on such Distribution Date), (ii) the Certificate Principal
      Balance of the Class M-1 Certificates (after taking into account the payment
      of
      the Class M-1 Principal Distribution Amount on such Distribution Date), (iii)
      the Certificate Principal Balance of the Class M-2 Certificates (after taking
      into account the payment of the Class M-2 Principal Distribution Amount on
      such
      Distribution Date), (iv) the Certificate Principal Balance of the Class M-3
      Certificates (after taking into account the payment of the Class M-3 Principal
      Distribution Amount on such Distribution Date) and (v) the Certificate Principal
      Balance of the Class M-4 Certificates immediately prior to such Distribution
      Date over (y) the lesser of (A) the product of (i) 86.70% and (ii) the aggregate
      Scheduled Principal Balance of the Mortgage Loans as of the last day of the
      related Due Period (after giving effect to scheduled payments of principal
      due
      during the related Due Period, to the extent received or advanced and
      unscheduled collections of principal received during the related Prepayment
      Period) and (B) the aggregate Scheduled Principal Balance of the Mortgage Loans
      as of the last day of the related Due Period (after giving effect to scheduled
      payments of principal due during the related Due Period, to the extent received
      or advanced and unscheduled collections of principal received during the related
      Prepayment Period) minus the product of (i) 0.50% and (ii) the aggregate
      principal balance of the Mortgage Loans as of the Cut-off Date.

     

    “Class
      M-5 Certificate”: Any one of the Class M-5 Certificates executed and
      authenticated by the Securities Administrator and delivered by the Trustee,
      substantially in the form annexed hereto as Exhibit A-2 and evidencing a Regular
      Interest in REMIC II for purposes of the REMIC Provisions.

     

    “Class
      M-5 Principal Distribution Amount”: With respect to any Distribution Date on or
      after the Stepdown Date and on which a Trigger Event is not in effect, the
      excess of (x) the sum of (i) the Certificate Principal Balance of the Class
      A
      Certificates (after taking into account the payment of the Class A Principal
      Distribution Amount on such Distribution Date), (ii) the Certificate Principal
      Balance of the Class M-1 Certificates (after taking into account the payment
      of
      the Class M-1 Principal Distribution Amount on such Distribution Date), (iii)
      the Certificate Principal Balance of the Class M-2 Certificates (after taking
      into account the payment of the Class M-2 Principal Distribution Amount on
      such
      Distribution Date), (iv) the Certificate Principal Balance of the Class M-3
      Certificates (after taking into account the payment of the Class M-3 Principal
      Distribution Amount on such Distribution Date), (v) the Certificate Principal
      Balance of the Class M-4 Certificates (after taking into account the payment
      of
      the Class M-4 Principal Distribution Amount on such Distribution Date) and
      (v)
      the Certificate Principal Balance of the Class M-5 Certificates immediately
      prior to such Distribution Date over (y) the lesser of (A) the product of (i)
      89.80% and (ii) the aggregate Scheduled Principal Balance of the Mortgage Loans
      as of the last day of the related Due Period (after giving effect to scheduled
      payments of principal due during the related Due Period, to the extent received
      or advanced and unscheduled collections of principal received during the related
      Prepayment Period) and (B) the aggregate Scheduled Principal Balance of the
      Mortgage Loans as of the last day of the related Due Period (after giving effect
      to scheduled payments of principal due during the related Due Period, to the
      extent received or advanced and unscheduled collections of principal received
      during the related Prepayment Period) minus the product of (i) 0.50% and (ii)
      the aggregate principal balance of the Mortgage Loans as of the Cut-off
      Date.

     

    “Class
      P
      Certificate”: Any one of the Class P Certificates executed and authenticated by
      the Securities Administrator and delivered by the Trustee, substantially in
      the
      form annexed hereto as Exhibit A-5 and evidencing a Regular Interest in REMIC
      II
      for purposes of the REMIC Provisions.

     

    “Class
      R
      Certificates”: Any one of the Class R Certificates executed and authenticated by
      the Securities Administrator and delivered by the Trustee, substantially in
      the
      form annexed hereto as Exhibit A-6, and evidencing the Class R-I Interest and
      the Class R-II Interest.

     

    “Class
      R-I Interest”: The uncertificated residual interest in REMIC I.

     

    “Class
      R-II Interest”: The uncertificated residual interest in REMIC II.

     

    “Closing
      Date”: June 26, 2006.

     

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

     

    “Collection
      Account”: Each separate account or accounts created and maintained, or caused to
      be created and maintained, by each of Ocwen and Wells Fargo pursuant to
      Section 3.08(a) of this Agreement, which shall be entitled (i) with respect
      to the Ocwen Mortgage Loans, “Ocwen Loan Servicing, LLC, as Servicer for HSBC
      Bank USA, National Association, as Trustee, in trust for the registered holders
      of ACE Securities Corp. Home Equity Loan Trust, Series 2006-SD2, Asset Backed
      Pass-Through Certificates” and (ii) with respect to the Wells Fargo Mortgage
      Loans, “Wells Fargo Bank, National Association, as Servicer for HSBC Bank USA,
      National Association, as Trustee, in trust for the registered holders of ACE
      Securities Corp. Home Equity Loan Trust, Series 2006-SD2, Asset Backed
      Pass-Through Certificates. Each Collection Account must be an Eligible
      Account.

     

    “Commission”:
      The Securities and Exchange Commission.

     

    “Controlling
      Person”: Means, with respect to any Person, any other Person who “controls” such
      Person within the meaning of the Securities Act.

     

    “Corporate
      Trust Office”: The principal corporate trust office of the Trustee or the
      Securities Administrator, as the case may be, at which, at any particular time,
      its corporate trust business in connection with this Agreement shall be
      administered, which office at the date of the execution of this instrument
      is
      located at (i) with respect to the Trustee, HSBC Bank USA, National Association,
      452 Fifth Avenue, New York, New York 10018, Attention: ACE Securities Corp.,
      2006-SD2, or at such other address as the Trustee may designate from time to
      time by notice to the Certificateholders, the Depositor, the Master Servicer,
      the Securities Administrator and the Servicers or (ii) with respect to the
      Securities Administrator, (A) for purposes of Certificate transfers and
      surrender, Wells Fargo Bank, National Association, Sixth Street and Marquette
      Avenue, Minneapolis, Minnesota 55479, Attention: Corporate Trust (ACE 2006-SD2),
      and (B) for all other purposes, Wells Fargo Bank, National Association, P.O.
      Box
      98, Columbia, Maryland 21046, Attention: Corporate Trust (ACE 2006-SD2) (or
      for
      overnight deliveries, at 9062 Old Annapolis Road, Columbia, Maryland 21045,
      Attention: Corporate Trust (ACE 2006-SD2)), or at such other address as the
      Securities Administrator may designate from time to time by notice to the
      Certificateholders, the Depositor, the Master Servicer, the Servicers and the
      Trustee.

     

    “Corresponding
      Certificate”: With respect to each REMIC I Regular Interest, as
      follows:

     

    
      	
              REMIC
                I Regular Interest

            	
              Class

            
	
              REMIC
                I Regular Interest I-LTA

            	
              A

            
	
              REMIC
                I Regular Interest I-LTM1

            	
              M-1

            
	
              REMIC
                I Regular Interest I-LTM2

            	
              M-2

            
	
              REMIC
                I Regular Interest I-LTM3

            	
              M-3

            
	
              REMIC
                I Regular Interest I-LTM4

            	
              M-4

            
	
              REMIC
                I Regular Interest I-LTM5

            	
              M-5

            
	
              REMIC
                I Regular Interest I-LTP

            	
              P

            
	
              REMIC
                I Regular Interest I-LTCE2

            	
              CE-2

            

    

    

    “Credit
      Enhancement Percentage”: For any Distribution Date is the percentage obtained by
      dividing (x) the aggregate Certificate Principal Balance of the Subordinate
      Certificates (which includes the Overcollateralization Amount) by (y) the
      aggregate principal balance of the Mortgage Loans, calculated after taking
      into
      account collections of principal on the Mortgage Loans and distribution of
      the
      Principal Distribution Amount to the holders of the Certificates then entitled
      to distributions of principal on the Distribution Date.

     

    “Credit
      Risk Management Agreements”: The agreements between the Credit Risk Manager and
      each Servicer and/or Master Servicer, each regarding the loss mitigation and
      advisory services to be provided by the Credit Risk Manager.

     

    “Credit
      Risk Management Fee”: The amount payable to the Credit Risk Manager on each
      Distribution Date as compensation for all services rendered by it in the
      exercise and performance of any and all powers and duties of the Credit Risk
      Manager under the Credit Risk Management Agreements, which amount shall equal
      one-twelfth of the product of (i) the Credit Risk Management Fee Rate multiplied
      by (ii) the Scheduled Principal Balance of the Mortgage Loans and any related
      REO Properties as of the first day of the related Due Period.

     

    “Credit
      Risk Management Fee Rate”: 0.0200% per annum.

     

    “Credit
      Risk Manager”: Risk Management Group, LLC, a New York limited liability company,
      and its successors and assigns.

     

    “Custodial
      Account”: The separate account or accounts maintained by SPS under the Servicing
      Agreement.

     

    “Custodial
      Agreement”: Either (i) the DBNTC Custodial Agreement or (ii) the Wells Fargo
      Custodial Agreement, or any other custodial agreement entered into after the
      date hereof with respect to any Mortgage Loan subject to this
      Agreement.

     

    “Custodian”:
      DBNTC or Wells Fargo Bank, National Association or any other custodian appointed
      under any custodial agreement entered into after the date of this
      Agreement.

     

    “Cut-off
      Date”: With respect to each Mortgage Loan, the close of business on May 31,
      2006. With respect to all Qualified Substitute Mortgage Loans, their respective
      dates of substitution. References herein to the “Cut-off Date,” when used with
      respect to more than one Mortgage Loan, shall be to the respective Cut-off
      Dates
      for such Mortgage Loans.

     

    “DBNTC”:
      Deutsche Bank National Trust Company, a national banking association, or its
      successor in interest.

     

    “DBNTC
      Custodial Agreement”: The Custodial Agreement, dated as of May 31, 2006,
      among the Trustee, DBNTC, Ocwen, SPS and Wells Fargo, as may be amended or
      supplemented from time to time.

     

    “Debt
      Service Reduction”: With respect to any Mortgage Loan, a reduction in the
      scheduled Monthly Payment for such Mortgage Loan by a court of competent
      jurisdiction in a proceeding under the Bankruptcy Code, except such a reduction
      resulting from a Deficient Valuation.

     

    “Deficient
      Valuation”: With respect to any Mortgage Loan, a valuation of the related
      Mortgaged Property by a court of competent jurisdiction in an amount less than
      the then outstanding principal balance of the Mortgage Loan, which valuation
      results from a proceeding initiated under the Bankruptcy Code.

     

    “Definitive
      Certificates”: As defined in Section 6.01(b) of this
      Agreement.

     

    “Deleted
      Mortgage Loan”: A Mortgage Loan replaced or to be replaced by a Qualified
      Substitute Mortgage Loan.

     

    “Delinquency
      Percentage”: As of the last day of the related Due Period, the rolling six month
      average of a fraction, expressed as a percentage, the numerator of which is
      the
      aggregate Scheduled Principal Balance of all 60-day Delinquent Mortgage Loans,
      as of the close of business of the last day of the related Due Period, provided
      that in the case of (i) Mortgage Loans that are the subject of forebearance
      plans and (ii) Mortgage Loans with respect to which the related Mortgagor is
      the
      subject of bankruptcy proceedings, delinquency shall be deemed to mean
      delinquency of the Monthly Payment due under the related forebearance plan
      or
      bankruptcy plan, as applicable, and the denominator of which is the aggregate
      Scheduled Principal Balance of the Mortgage Loans and REO Properties as of
      the
      close of business of the last day of the related Due Period.

     

    “Depositor”:
      ACE Securities Corp., a Delaware corporation, or its successor in
      interest.

     

    “Depository”:
      The Depository Trust Company, or any successor Depository hereafter named.
      The
      nominee of the initial Depository, for purposes of registering those
      Certificates that are to be Book-Entry Certificates, is Cede & Co. 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
      and a “clearing agency” registered pursuant to the provisions of
      Section 17A of the Exchange Act.

     

    “Depository
      Institution”: Any depository institution or trust company, including the
      Trustee, that (a) is incorporated under the laws of the United States of America
      or any State thereof, (b) is subject to supervision and examination by federal
      or state banking authorities and (c) has outstanding unsecured commercial paper
      or other short-term unsecured debt obligations (or, in the case of a depository
      institution that is the principal subsidiary of a holding company, such holding
      company has unsecured commercial paper or other short-term unsecured debt
      obligations) that are rated at least A-1+ by S&P, F-1+ by Fitch and P-1 by
      Moody’s (or, if such Rating Agencies are no longer rating the Offered
      Certificates, comparable ratings by any other nationally recognized statistical
      rating agency then rating the Offered Certificates).

     

    “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”: With respect to (i) Ocwen and each Distribution Date, the 15th
      day of
      the calendar month in which such Distribution Date occurs, or if such
      15th
      day is
      not a Business Day, the Business Day immediately preceding such 15th
      day and
      (ii) Wells Fargo and each Distribution Date, the Business Day preceding the
      related Servicer Remittance Date. With respect to SPS, the date specified in
      the
      Servicing Agreement. The Determination Date for purposes of Article X hereof
      shall mean the 15th
      day of
      the month or, if such 15th
      day is
      not a Business Day, the first Business Day following such 15th
      day.

     

    “Directly
      Operate”: With respect to any REO Property, the furnishing or rendering of
      services to the tenants thereof, the management or operation of such REO
      Property, the holding of such REO Property primarily for sale to customers,
      the
      performance of any construction work thereon or any use of such REO Property
      in
      a trade or business conducted by REMIC I other than through an Independent
      Contractor; provided, however, that the related Servicer, on behalf of the
      Trustee, shall not be considered to Directly Operate an REO Property solely
      because the related Servicer establishes rental terms, chooses tenants, enters
      into or renews leases, deals with taxes and insurance, or makes decisions as
      to
      repairs or capital expenditures with respect to such REO Property.

     

    “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 Freddie Mac, 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, (v) an “electing large partnership” and
      (vi) 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 any Trust REMIC or any Person having an Ownership Interest
      in any Class of Certificates (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 separate trust account or accounts created and maintained by the
      Securities Administrator pursuant to Section 3.08(c) of this Agreement in
      the name of the Securities Administrator for the benefit of the
      Certificateholders and designated “Wells Fargo Bank, National Association, in
      trust for registered holders of ACE Securities Corp. Home Equity Loan Trust,
      Series 2006-SD2”. Funds in the Distribution Account shall be held in trust for
      the Certificateholders for the uses and purposes set forth in this Agreement.
      The Distribution Account must be an Eligible Account.

     

    “Distribution
      Date”: The 25th
      day of
      any month, or if such 25th
      day is
      not a Business Day, the Business Day immediately following such 25th
      day,
      commencing in July 2006.

     

    “Due
      Date”: With respect to each Distribution Date, the day of the month on which the
      Monthly Payment is due on a Mortgage Loan during the related Due Period,
      exclusive of any days of grace.

     

    “Due
      Period”: With respect to the Distribution Date in July 2006, the period
      commencing on June 1, 2006 and ending on July 1, 2006, and with
      respect to any Distribution Date thereafter, the period commencing on the second
      day of the month immediately preceding the month in which such Distribution
      Date
      occurs and ending on the first day of the month in which such Distribution
      Date
      occurs.

     

    “Eligible
      Account”: Any of (i) an account or accounts maintained with a Depository
      Institution, (ii) an account or accounts the deposits in which are fully insured
      by the FDIC or (iii) a trust account or accounts maintained with a federal
      depository institution or state chartered depository institution acting in
      its
      fiduciary capacity. Eligible Accounts may bear interest.

     

    “ERISA”:
      The Employee Retirement Income Security Act of 1974, as amended from time to
      time.

     

    “Estate
      in Real Property”: A fee simple estate in a parcel of land.

     

    “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 Net Mortgage Rate through the last day of the month
      in
      which the related Liquidation Event occurs, plus (ii) related liquidation
      expenses or other amounts to which the related Servicer is entitled to be
      reimbursed from Liquidation Proceeds with respect to such liquidated Mortgage
      Loan pursuant to Section 3.09 of this Agreement or pursuant to the
      Servicing Agreement.

     

    “Excess
      Servicing Fee”: As defined in Section 5.01(b) of this
      Agreement.

     

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

     

    “Extraordinary
      Trust Fund Expense”: Any amounts payable or reimbursable to the Trustee, the
      Master Servicer, the Securities Administrator, the Custodians, the Credit Risk
      Manager or any director, officer, employee or agent of any such Person from
      the
      Trust Fund pursuant to the terms of this Agreement and any amounts payable
      from
      the Distribution Account in respect of taxes pursuant to
      Section 11.01(g)(v) of this Agreement or pursuant to the Servicing
      Agreement.

     

    “Fannie
      Mae”: Fannie Mae, formerly known as the Federal National Mortgage Association,
      or any successor thereto.

     

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

     

    “Final
      Recovery Determination”: With respect to any defaulted Mortgage Loan or any REO
      Property (other than a Mortgage Loan or REO Property purchased by the Sponsor
      or
      the Terminator pursuant to or as contemplated by Section 2.03,
      Section 3.13(c) or Section 10.01 of this Agreement), a determination
      made by the related Servicer that all Insurance Proceeds, Liquidation Proceeds
      and other payments or recoveries which the related Servicer, in its reasonable
      good faith judgment, expects to be finally recoverable in respect thereof have
      been so recovered, which determination shall be evidenced by a certificate
      of a
      Servicing Officer of the related Servicer delivered to the Master Servicer
      and
      maintained in its records.

     

    “Fitch”:
      Fitch Ratings or any successor thereto.

     

    “Foreclosure
      Restricted Mortgage Loans”: A Mortgage Loan that was 90 or more days delinquent
      as of the Closing Date and which was not current under a repayment plan and
      identified as such on the Mortgage Loan Schedule.

     

    “Form
      8-K
      Disclosure Information”: Has the meaning set forth in Section
      5.06(b).

     

    “Freddie
      Mac”: Freddie Mac, formerly known as the Federal Home Loan Mortgage Corporation,
      or any successor thereto.

     

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

     

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

     

    “Independent
      Contractor”: Either (i) any Person (other than a Servicer) that would be an
“independent contractor” with respect to REMIC I within the meaning of
      Section 856(d)(3) of the Code if REMIC I were a real estate investment
      trust (except that the ownership tests set forth in that section shall be
      considered to be met by any Person that owns, directly or indirectly, 35% or
      more of any Class of Certificates), so long as REMIC I does not receive or
      derive any income from such Person and provided that the relationship between
      such Person and REMIC I is at arm’s length, all within the meaning of Treasury
      Regulation Section 1.856-4(b)(5), or (ii) any other Person (including any
      Servicer) if the Trustee has received an Opinion of Counsel to the effect that
      the taking of any action in respect of any REO Property by such Person, subject
      to any conditions therein specified, that is otherwise herein contemplated
      to be
      taken by an Independent Contractor will not cause such REO Property to cease
      to
      qualify as “foreclosure property” within the meaning of Section 860G(a)(8)
      of the Code (determined without regard to the exception applicable for purposes
      of Section 860D(a) of the Code), or cause any income realized in respect of
      such REO Property to fail to qualify as Rents from Real Property.

     

    “Index”:
      As of any Adjustment Date, the index applicable to the determination of the
      Mortgage Rate on each Adjustable Rate Mortgage Loan will generally be (i) the
      average of the interbank offered rates for six-month United States dollar
      deposits in the London market as published in The Wall Street Journal and as
      most recently available either (a) as of the first Business Day 45 days prior
      to
      such Adjustment Date or (b) as of the first Business Day of the month preceding
      the month of such Adjustment Date, as specified in the related Mortgage Note,
      (ii) the average of the interbank offered rates for one-year United States
      dollar deposits in the London market as published in The Wall Street Journal
      and
      as most recently available either (a) as of the first business day 45 days
      prior
      to that Adjustment Date or (b) as of the first business day of the month
      preceding the month of the Adjustment Date, as specified in the related mortgage
      note or (iii) the weekly average yield on United States Treasury Securities
      adjusted to a constant maturity of one year, as published in the Federal Reserve
      Statistical Release H.15 (519) as most recently announced as of a date 45 days
      prior to that Adjustment Date.

     

    “Insurance
      Proceeds”: Proceeds of any title policy, hazard policy or other insurance
      policy, covering a Mortgage Loan or the related Mortgaged Property, to the
      extent such proceeds are not to be applied to the restoration of the related
      Mortgaged Property or released to the Mortgagor or a senior lienholder in
      accordance with Accepted Servicing Practices, subject to the terms and
      conditions of the related Mortgage Note and Mortgage.

     

    “Interest
      Accrual Period”: With respect to any Distribution Date and the Offered
      Certificates, the period commencing on the Distribution Date of the month
      immediately preceding the month in which such Distribution Date occurs (or,
      in
      the case of the first Distribution Date, commencing on the Closing Date) and
      ending on the day preceding such Distribution Date. With respect to any
      Distribution Date and the Class CE-1 Certificates and Class CE-2 Certificates
      and the REMIC I Regular Interests, the one-month period ending on the last
      day
      of the calendar month immediately preceding the month in which such Distribution
      Date occurs.

     

    “Interest
      Carry Forward Amount”: With respect to any Distribution Date and any Class of
      Offered Certificates, the sum of (i) the amount, if any, by which (a) the
      Interest Distribution Amount for such Class as of the immediately preceding
      Distribution Date exceeded (b) the actual amount distributed on such Class
      in
      respect of interest on such immediately preceding Distribution Date and (ii)
      the
      amount of any Interest Carry Forward Amount for such Class remaining unpaid
      from
      the previous Distribution Date, plus accrued interest on such sum calculated
      at
      the related Pass-Through Rate for the most recently ended Interest Accrual
      Period.

     

    “Interest
      Determination Date”: With respect to the Class A Certificates, the Mezzanine
      Certificates, REMIC I Regular Interest I-LTA, REMIC I Regular Interest I-LTM1,
      REMIC I Regular Interest I-LTM2, REMIC I Regular Interest I-LTM3, REMIC I
      Regular Interest I-LTM4 and REMIC I Regular Interest I-LTM5 and any Interest
      Accrual Period therefor, the second London Business Day preceding the
      commencement of such Interest Accrual Period.

     

    “Interest
      Distribution Amount”: With respect to any Distribution Date and any Class A
      Certificate, any Mezzanine Certificate, any Class CE-1 Certificate and any
      Class
      CE-2 Certificate, the aggregate Accrued Certificate Interest on the Certificates
      of such Class for such Distribution Date.

     

    “Interest
      Remittance Amount”: With respect to any Distribution Date, the portion of the
      Available Distribution Amount for such Distribution Date that represents
      interest received or advanced on the Mortgage Loans (other than any Simple
      Interest Excess, if applicable, and net of the Administration Fees, Arrearages
      collected by the Servicers and any Prepayment Charges and after taking into
      account amounts payable or reimbursable to the Trustee, the Custodians, the
      Securities Administrator, the Master Servicer, the Credit Risk Manager or the
      Servicers pursuant to this Agreement, the Servicing Agreement or the Custodial
      Agreements, as applicable), plus any amounts withdrawn from the Simple Interest
      Excess Sub-Account.

     

    “Last
      Scheduled Distribution Date”: The Distribution Date occurring in December 2045,
      which is the Distribution Date immediately following the maturity date for
      the
      Mortgage Loan with the latest maturity date.

     

    “Late
      Collections”: With respect to any Mortgage Loan and any Due Period, all amounts
      received subsequent to the Determination Date immediately following such Due
      Period with respect to such Mortgage Loan, whether as late payments of Monthly
      Payments or as Insurance Proceeds, Liquidation Proceeds or otherwise, which
      represent late payments or collections of principal and/or interest due (without
      regard to any acceleration of payments under the related Mortgage and Mortgage
      Note) but delinquent for such Due Period and not previously
      recovered.

     

    “Liquidation
      Event”: With respect to any Mortgage Loan, any of the following events: (i) such
      Mortgage Loan is paid in full; (ii) a Final Recovery Determination is made
      as to
      such Mortgage Loan or (iii) such Mortgage Loan is removed from REMIC I by reason
      of its being purchased, sold or replaced pursuant to or as contemplated by
      Section 2.03, Section 3.13(c) or Section 10.01 of this Agreement.
      With respect to any REO Property, either of the following events: (i) a Final
      Recovery Determination is made as to such REO Property or (ii) such REO Property
      is removed from REMIC I by reason of its being purchased pursuant to
      Section 10.01 of this Agreement.

     

    “Liquidation
      Proceeds”: The amount (other than Insurance Proceeds, amounts received in
      respect of the rental of any REO Property prior to REO Disposition, or required
      to be released to a Mortgagor or a senior lienholder in accordance with
      applicable law or the terms of the related Mortgage Loan Documents) received
      by
      the related Servicer in connection with (i) the taking of all or a part of
      a
      Mortgaged Property by exercise of the power of eminent domain or condemnation
      (other than amounts required to be released to the Mortgagor or a senior
      lienholder), (ii) the liquidation of a defaulted Mortgage Loan through a
      trustee’s sale, foreclosure sale or otherwise, (iii) the repurchase,
      substitution or sale of a Mortgage Loan or an REO Property pursuant to or as
      contemplated by Section 2.03, Section 3.13(c), Section 3.21 or
      Section 10.01 of this Agreement or pursuant to the Servicing Agreement or
      (iv) any Subsequent Recoveries.

     

    “Loan-to-Value
      Ratio”: As of any date of determination, the fraction, expressed as a
      percentage, the numerator of which is the principal balance of the related
      Mortgage Loan at such date and the denominator of which is the Value of the
      related Mortgaged Property.

     

    “London
      Business Day”: Any day on which banks in the Cities of London and New York are
      open and conducting transactions in United States dollars.

     

    “Loss
      Severity Percentage”: With respect to any Distribution Date, the percentage
      equivalent of a fraction, the numerator of which is the amount of Realized
      Losses incurred on a Mortgage Loan and the denominator of which is the principal
      balance of such Mortgage Loan immediately prior to the liquidation of such
      Mortgage Loan.

     

    “Marker
      Rate”: With respect to the Class CE-1 Certificates and any Distribution Date, a
      per annum rate equal to two (2) times the weighted average of the REMIC I
      Remittance Rate for each of REMIC I Regular Interest I-LTA, REMIC I Regular
      Interest I-LTM1, REMIC I Regular Interest I-LTM2, REMIC I Regular Interest
      I-LTM3, REMIC I Regular Interest I-LTM4, REMIC I Regular Interest I-LTM5 and
      REMIC I Regular Interest I-LTZZ, with the rate on each such REMIC I Regular
      Interest (other than REMIC I Regular Interest I-LTZZ) subject to a cap equal
      to
      the lesser of (i) the related One-Month LIBOR Pass-Through Rate and (ii) the
      related Net WAC Pass-Through Rate for the Corresponding Certificates for the
      purpose of this calculation for such Distribution Date and with the rate on
      REMIC I Regular Interest I-LTZZ subject to a cap of zero for the purpose of
      this
      calculation; provided however, each such cap for each REMIC I Regular Interest
      shall be multiplied by a fraction the numerator of which is the actual number
      of
      days in the related Interest Accrual Period and the denominator of which is
      30.

     

    “Master
      Servicer”: As of the Closing Date, Wells Fargo Bank, National Association and
      thereafter, its respective successors in interest who meet the qualifications
      of
      this Agreement. The Master Servicer and the Securities Administrator shall
      at
      all times be the same Person or an Affiliate.

     

    “Master
      Servicer Event of Default”: One or more of the events described in
      Section 8.01(b) of this Agreement.

     

    “Master
      Servicing Fee”: With respect to each Mortgage Loan and for any calendar month,
      an amount equal to one twelfth of the product of the Master Servicing Fee Rate
      multiplied by the Scheduled Principal Balance of the Mortgage Loans as of the
      Due Date in the preceding calendar month.

     

    “Master
      Servicing Fee Rate”: 0.0575% per annum.

     

    “Maximum
      I-LTZZ Uncertificated Interest Deferral Amount”: With respect to any
      Distribution Date, the excess of (i) accrued interest at the REMIC I Remittance
      Rate applicable to REMIC I Regular Interest I-LTZZ for such Distribution Date
      on
      a balance equal to the Uncertificated Balance of REMIC I Regular Interest I-LTZZ
      minus the REMIC I Overcollateralization Amount, in each case for such
      Distribution Date, over (ii) Uncertificated Interest on REMIC I Regular Interest
      I-LTA, REMIC I Regular Interest I-LTM1, REMIC I Regular Interest I-LTM2, REMIC
      I
      Regular Interest I-LTM3, REMIC I Regular Interest I-LTM4 and REMIC I Regular
      Interest I-LTM5 for such Distribution Date, with the rate on each such REMIC
      I
      Regular Interest subject to a cap equal to the lesser of (i) the related
      One-Month LIBOR Pass-Through Rate and (ii) the related Net WAC Pass-Through
      Rate
      for the Corresponding Certificates for the purpose of this calculation for
      such
      Distribution Date; provided however, each such cap for each REMIC I Regular
      Interest shall be multiplied by a fraction the numerator of which is the actual
      number of days in the related Interest Accrual Period and the denominator of
      which is 30.

     

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

     

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

     

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

     

    “Mezzanine
      Certificate”: Any Class M-1, Class M-2, Class M-3, Class M-4 or Class M-5
      Certificate.

     

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

     

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

     

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

     

    “Monthly
      Payment”: With respect to any Mortgage Loan, the scheduled monthly payment of
      principal and interest on such Mortgage Loan which is payable by the related
      Mortgagor from time to time under the related Mortgage Note, a bankruptcy or
      a
      forebearance plan determined: (a) after giving effect to (i) any Deficient
      Valuation and/or Debt Service Reduction with respect to such Mortgage Loan
      and
      (ii) any reduction in the amount of interest collectible from the related
      Mortgagor pursuant to the Relief Act or similar state laws; (b) without giving
      effect to any extension granted or agreed to by the related Servicer pursuant
      to
      Section 3.01 of this Agreement or pursuant to the Servicing Agreement; and
      (c) on the assumption that all other amounts, if any, due under such Mortgage
      Loan are paid when due.

     

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

     

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

     

    “Mortgage
      File”: The Mortgage Loan Documents pertaining to a particular Mortgage
      Loan.

     

    “Mortgage
      Loan”: Each mortgage loan transferred and assigned to the Trustee and the
      Mortgage Loan Documents for which have been delivered to the applicable
      Custodian pursuant to Section 2.01 of this Agreement and pursuant to the
      related Custodial Agreement, as held from time to time as a part of the Trust
      Fund, the Mortgage Loans so held being identified in the Mortgage Loan
      Schedule.

     

    “Mortgage
      Loan Documents”: The documents evidencing or relating to each Mortgage Loan
      delivered to the applicable Custodian under the related Custodial Agreement
      on
      behalf of the Trustee.

     

    “Mortgage
      Loan Purchase Agreement”: Shall mean the Mortgage Loan Purchase Agreement, dated
      as of June 26, 2006, between the Depositor and the Sponsor, a copy of which
      is attached hereto as Exhibit F.

     

    “Mortgage
      Loan Schedule”: As of any date, the list of Mortgage Loans included in REMIC I
      on such date, separately identifying the Mortgage Loans, attached hereto as
      Schedule 1. The Depositor shall deliver or cause the delivery of the initial
      Mortgage Loan Schedule to the related Servicer, the Master Servicer, the
      Custodians and the Trustee on the Closing Date. The Mortgage Loan Schedule
      shall
      set forth the following information with respect to each Mortgage
      Loan:

     

    
      
        	 	
                (i)

              	
                the
                  Mortgage Loan identifying number;

              
	 	 	 
	 	
                (ii)

              	
                the
                  Mortgagor’s first and last name;

              
	 	 	 
	 	
                (iii)

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

              
	 	 	 
	 	
                (iv)

              	
                a
                  code indicating whether the Mortgaged Property is
                  owner-occupied;

              
	 	 	 
	 	
                (v)

              	
                the
                  type of Residential Dwelling constituting the Mortgaged
                  Property;

              
	 	 	 
	 	
                (vi)

              	
                the
                  original months to maturity;

              
	 	 	 
	 	
                (vii)

              	
                the
                  original date of the Mortgage Loan and the remaining months to
                  maturity
                  from the Cut-off Date, based on the original amortization
                  schedule;

              
	 	 	 
	 	
                (viii)

              	
                the
                  Loan-to-Value Ratio at origination;

              
	 	 	 
	 	
                (ix)

              	
                the
                  Mortgage Rate in effect immediately following the Cut-off
                  Date;

              
	 	 	 
	 	
                (x)

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

              
	 	 	 
	 	
                (xi)

              	
                the
                  stated maturity date;

              
	 	 	 
	 	
                (xii)

              	
                the
                  amount of the Monthly Payment at origination;

              
	 	 	 
	 	
                (xiii)

              	
                the
                  amount of the Monthly Payment (including as set forth in a forebearance
                  plan or in connection with a bankruptcy proceeding) as of the Cut-off
                  Date;

              
	 	 	 
	 	
                (xiv)

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

              
	 	 	 
	 	
                (xv)

              	
                the
                  original principal amount of the Mortgage Loan;

              
	 	 	 
	 	
                (xvi)

              	
                the
                  Scheduled Principal Balance of the Mortgage Loan as of the close
                  of
                  business on the Cut-off Date;

              
	 	 	 
	 	
                (xvii)

              	
                with
                  respect to each Adjustable Rate Mortgage Loan, the first Adjustment
                  Date;

              
	 	 	 
	 	
                (xviii)

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

              
	 	 	 
	 	
                (xix)

              	
                a
                  code indicating the purpose of the loan (i.e., purchase financing,
                  rate/term refinancing, cash-out refinancing);

              
	 	 	 
	 	
                (xx)

              	
                with
                  respect to each Adjustable Rate Mortgage Loan, the Maximum Mortgage
                  Rate
                  under the terms of the Mortgage Note;

              
	 	 	 
	 	
                (xxi)

              	
                with
                  respect to each Adjustable Rate Mortgage Loan, the Minimum Mortgage
                  Rate
                  under the terms of the Mortgage Note;

              
	 	 	 
	 	
                (xxii)

              	
                the
                  Mortgage Rate at origination;

              
	 	 	 
	 	
                (xxiii)

              	
                with
                  respect to each Adjustable Rate Mortgage Loan, the Periodic Rate
                  Cap;

              
	 	 	 
	 	
                (xxiv)

              	
                with
                  respect to each Adjustable Rate Mortgage Loan, the first Adjustment
                  Date
                  immediately following the Cut-off Date;

              
	 	 	 
	 	
                (xxv)

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

              
	 	 	 
	 	
                (xxvi)

              	
                the
                  date on which the first Monthly Payment was due on the Mortgage
                  Loan and,
                  if such date is not consistent with the Due Date currently in effect,
                  such
                  Due Date;

              
	 	 	 
	 	
                (xxvii)

              	
                a
                  code indicating whether the Mortgage Loan is an Adjustable Rate
                  Mortgage
                  Loan or a fixed rate Mortgage Loan;

              
	 	 	 
	 	
                (xxviii)

              	
                a
                  code indicating the documentation style (i.e., full, stated or
                  limited);

              
	 	 	 
	 	
                (xxix)

              	
                a
                  code indicating if the Mortgage Loan is subject to a primary insurance
                  policy or lender paid mortgage insurance policy, the name of the
                  insurer
                  and, if applicable, the rate payable in connection
                  therewith;

              
	 	 	 
	 	
                (xxx)

              	
                the
                  Appraised Value of the Mortgaged Property;

              
	 	 	 
	 	
                (xxxi)

              	
                the
                  sale price of the Mortgaged Property, if applicable;

              
	 	 	 
	 	
                (xxxii)

              	
                a
                  code indicating whether the Mortgage Loan is subject to a Prepayment
                  Charge, the term of such Prepayment Charge and the amount of such
                  Prepayment Charge;

              
	 	 	 
	 	
                (xxxiii)

              	
                the
                  product type (e.g., 2/28, 15 year fixed, 30 year fixed, 15/30 balloon,
                  etc.);

              
	 	 	 
	 	
                (xxxiv)

              	
                the
                  Mortgagor’s debt to income ratio;

              
	 	 	 
	 	
                (xxxv)

              	
                the
                  FICO score at origination;

              
	 	 	 
	 	
                (xxxvi)

              	
                the
                  amount of any Arrearage;

              
	 	 	 
	 	
                (xxxvii)

              	
                a
                  code indicating a Foreclosure Restricted Mortgage Loan;

              
	 	 	 
	 	
                (xxxviii)

              	
                whether
                  such Mortgage Loan is a Simple Interest Mortgage Loan;

              
	 	 	 
	 	
                (xxxix)

              	
                with
                  respect to each Mortgage Loan registered on MERS, the
                  MIN:

              
	 	 	 
	 	
                (xl)

              	
                a
                  code indicating whether the Mortgage Loan is secured by a first
                  or second
                  lien;

              
	 	 	 
	 	
                (xli)

              	
                the
                  Servicing Fee; 

              
	 	 	 
	 	
                (xlii)

              	
                the
                  applicable Servicer; and

              
	 	 	 
	 	
                (xliii)

              	
                the
                  applicable Custodian.

              

      

      
 

    

    The
      Mortgage Loan Schedule shall set forth the following information with respect
      to
      the Mortgage Loans in the aggregate as of the Cut-off Date: (1) the number
      of
      Mortgage Loans; (2) the current principal balance of the Mortgage Loans; (3)
      the
      weighted average Mortgage Rate of the Mortgage Loans; and (4) the weighted
      average maturity of the Mortgage Loans. The Mortgage Loan Schedule shall be
      amended from time to time by the Depositor in accordance with the provisions
      of
      this Agreement. With respect to any Qualified Substitute Mortgage Loan, the
      Cut-off Date shall refer to the related Cut-off Date for such Mortgage Loan,
      determined in accordance with the definition of Cut-off Date
      herein.

     

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

     

    “Mortgage
      Rate”: With respect to each Mortgage Loan, the annual rate at which interest
      accrues on such Mortgage Loan from time to time in accordance with the
      provisions of the related Mortgage Note, which rate with respect to each
      Adjustable Rate Mortgage Loan (A) as of any date of determination until the
      first Adjustment Date following the Cut-off Date shall be the rate set forth
      in
      the Mortgage Loan Schedule as the Mortgage Rate in effect immediately following
      the Cut-off Date and (B) as of any date of determination thereafter shall be
      the
      rate as adjusted on the most recent Adjustment Date equal to the sum, rounded
      to
      the nearest 0.125% as provided in the Mortgage Note, of the related Index,
      as
      most recently available as of a date prior to the Adjustment Date as set forth
      in the related Mortgage Note, plus the related Gross Margin; provided that
      the
      Mortgage Rate on such Adjustable Rate Mortgage Loan on any Adjustment Date
      shall
      never be more than the lesser of (i) the sum of the Mortgage Rate in effect
      immediately prior to the Adjustment Date plus the related Periodic Rate Cap,
      if
      any, and (ii) the related Maximum Mortgage Rate, and shall never be less than
      the greater of (i) the Mortgage Rate in effect immediately prior to the
      Adjustment Date less the Periodic Rate Cap, if any, and (ii) the related Minimum
      Mortgage Rate. With respect to each Mortgage Loan that becomes an REO Property,
      as of any date of determination, the annual rate determined in accordance with
      the immediately preceding sentence as of the date such Mortgage Loan became
      an
      REO Property.

     

    “Mortgaged
      Property”: The underlying property securing a Mortgage Loan, including any REO
      Property, consisting of an Estate in Real Property improved by a Residential
      Dwelling.

     

    “Mortgagor”:
      The obligor on a Mortgage Note.

     

    “Net
      Monthly Excess Cashflow”: With respect to any Distribution Date, the sum of (i)
      the amount of any collections in respect of Arrearages on the Mortgage Loans,
      (ii) any Overcollateralization Reduction Amount for such Distribution Date
      and
      (iii) the excess of (x) the Available Distribution Amount for such Distribution
      Date over (y) the sum of (A) the Senior Interest Distribution Amount payable
      to
      the Holders of the Class A Certificates, (B) the aggregate Interest Distribution
      Amounts payable to the Holders of the Mezzanine Certificates and (C) the
      Principal Remittance Amount.

     

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

     

    “Net
      Simple Interest Excess”: As of any Distribution Date, an amount equal to the
      excess, if any, of the aggregate amount of Simple Interest Excess with respect
      to the Mortgage Loans over the amount of Simple Interest Shortfall with respect
      to the Mortgage Loans.

     

    “Net
      Simple Interest Shortfall”: As of any Distribution Date, an amount equal to the
      excess, if any, of the aggregate amount of Simple Interest Shortfall with
      respect to the Mortgage Loans over the amount of Simple Interest Excess with
      respect to the Mortgage Loans.

     

    “Net
      WAC
      Pass-Through Rate”: The Net WAC Pass-Through Rate for any Distribution Date and
      the Offered Certificates is a rate per annum (adjusted for the actual number
      of
      days elapsed in the related Interest Accrual Period) equal to the weighted
      average of the Net Mortgage Rates on the then outstanding Mortgage Loans,
      weighted based on their Scheduled Principal Balances as of the first day of
      the
      calendar month preceding the month in which such Distribution Date occurs.
      For
      federal income tax purposes, the economic equivalent of such rate shall be
      expressed as the weighted average of (adjusted for the actual number of days
      elapsed in the related Interest Accrual Period) the REMIC I Remittance Rates
      on
      the REMIC I Regular Interests, weighted on the basis of the Uncertificated
      Balance of each such REMIC I Regular Interest.

     

    “Net
      WAC
      Rate Carryover Amount”: With respect to any Offered Certificate and any
      Distribution Date on which the Pass-Through Rate is limited to the applicable
      Net WAC Pass-Through Rate, an amount equal to the sum of (i) the excess of
      (x)
      the amount of interest such Class would have been entitled to receive on such
      Distribution Date if the applicable Net WAC Pass-Through Rate would not have
      been applicable to such Class on such Distribution Date over (y) the amount
      of
      interest paid to such Class on such Distribution Date at the applicable Net
      WAC
      Pass-Through Rate plus (ii) the related Net WAC Rate Carryover Amount for the
      previous Distribution Date not previously distributed to such Class together
      with interest thereon at a rate equal to the Pass-Through Rate for such Class
      for the most recently ended Interest Accrual Period without taking into account
      the applicable Net WAC Pass-Through Rate.

     

    “New
      Lease”: Any lease of REO Property entered into on behalf of REMIC I, including
      any lease renewed or extended on behalf of REMIC I, if REMIC I has the right
      to
      renegotiate the terms of such lease.

     

    “Nonrecoverable
      P&I Advance”: Any P&I Advance previously made or proposed to be made in
      respect of a Mortgage Loan or REO Property that, in the good faith business
      judgment of the related Servicer or a successor to the related Servicer
      (including the Trustee or the Master Servicer) will not or, in the case of
      a
      proposed P&I Advance, would not be ultimately recoverable from related Late
      Collections, Insurance Proceeds or Liquidation Proceeds on such Mortgage Loan
      or
      REO Property as provided herein or in the Servicing Agreement.

     

    “Nonrecoverable
      Servicing Advance”: Any Servicing Advance previously made or proposed to be made
      in respect of a Mortgage Loan or REO Property that, in the good faith business
      judgment of the related Servicer or a successor to a Servicer, will not or,
      in
      the case of a proposed Servicing Advance, would not be ultimately recoverable
      from related Late Collections, Insurance Proceeds or Liquidation Proceeds on
      such Mortgage Loan or REO Property as provided herein or in the Servicing
      Agreement.

     

    “Non-United
      States Person”: Any Person other than a United States Person.

     

    “Notional
      Amount”: With respect to the Class CE-1 Certificates and any Distribution Date,
      the Uncertificated Balance of the REMIC I Regular Interests (other than REMIC
      I
      Regular Interest I-LTP) for such Distribution Date. As of the Closing Date,
      the
      Notional Amount of the Class CE-1 Certificates is equal to $145,159,197.82.
      

     

    With
      respect to the Class CE-2 Certificates and any Distribution Date, the Notional
      Amount of REMIC I Regular Interest I-LTCE2 for such Distribution Date.

     

    With
      respect to REMIC I Regular Interest I-LTCE2 and any Distribution Date, the
      sum
      of the aggregate principal balances of the (i) Ocwen Mortgage Loans, (ii) Wells
      Fargo Mortgage Loans and (iii) SPS Mortgage Loans for such Distribution
      Date.

     

    “Ocwen”:
      Ocwen Loan Servicing, LLC or any successor thereto appointed hereunder in
      connection with the servicing and administration of the Ocwen Mortgage
      Loans.

     

    “Ocwen
      Mortgage Loans”: The Mortgage Loans serviced by Ocwen pursuant to the terms of
      this Agreement as specified on the Mortgage Loan Schedule.

     

    “Ocwen
      Servicing Fee Rate”: 0.41% per annum.

     

    “Offered
      Certificates”: The Class A Certificates and the Mezzanine Certificates,
      collectively.

     

    “Officer’s
      Certificate”: With respect to any Person, a certificate signed by the Chairman
      of the Board, the Vice Chairman of the Board, the President or a vice president
      (however denominated), or by the Treasurer, the Secretary, or one of the
      assistant treasurers or assistant secretaries of such Person (or in the case
      of
      a Person that is not a corporation, signed by the person or persons having
      like
      responsibilities).

     

    “One-Month
      LIBOR”: With respect to the Class A Certificates, the Mezzanine Certificates,
      REMIC I Regular Interest I-LTA, REMIC I Regular Interest I-LTM1, REMIC I Regular
      Interest I-LTM2, REMIC I Regular Interest I-LTM3, REMIC I Regular Interest
      I-LTM4, REMIC I Regular Interest I-LTM5 and any Interest Accrual Period
      therefor, the rate determined by the Securities Administrator on the related
      Interest Determination Date on the basis of the offered rate for one-month
      U.S.
      dollar deposits, as such rate appears on Telerate Page 3750 as of 11:00 a.m.
      (London time) on such Interest Determination Date; provided that if such rate
      does not appear on Telerate Page 3750, the rate for such date will be determined
      on the basis of the offered rates of the Reference Banks for one-month U.S.
      dollar deposits, as of 11:00 a.m. (London time) on such Interest Determination
      Date. In such event, the Securities Administrator will request the principal
      London office of each of the Reference Banks to provide a quotation of its
      rate.
      If on such Interest Determination Date, two or more Reference Banks provide
      such
      offered quotations, One-Month LIBOR for the related Interest Accrual Period
      shall be the arithmetic mean of such offered quotations (rounded upwards if
      necessary to the nearest whole multiple of 1/16). If on such Interest
      Determination Date, fewer than two Reference Banks provide such offered
      quotations, One-Month LIBOR for the related Interest Accrual Period shall be
      the
      higher of (i) LIBOR as determined on the previous Interest Determination Date
      and (ii) the Reserve Interest Rate. Notwithstanding the foregoing, if, under
      the
      priorities described above, LIBOR for an Interest Determination Date would
      be
      based on LIBOR for the previous Interest Determination Date for the third
      consecutive Interest Determination Date, the Securities Administrator shall
      select an alternative comparable index (over which the Securities Administrator
      has no control), used for determining one-month Eurodollar lending rates that
      is
      calculated and published (or otherwise made available) by an independent party.
      The establishment of One-Month LIBOR by the Securities Administrator and the
      Securities Administrator’s subsequent calculation of the One-Month LIBOR
      Pass-Through Rates for the relevant Interest Accrual Period, shall, in the
      absence of manifest error, be final and binding.

     

    “One-Month
      LIBOR Pass-Through Rate”: With respect to the Class A Certificates and, for
      purposes of the definition of “Marker Rate”, REMIC I Regular Interest I-LTA, a
      per annum rate equal to One-Month LIBOR plus the related Certificate
      Margin.

     

    With
      respect to the Class M-1 Certificates and, for purposes of the definition of
      “Marker Rate”, REMIC I Regular Interest I-LTM1, a per annum rate equal to
      One-Month LIBOR plus the related Certificate Margin.

     

    With
      respect to the Class M-2 Certificates and, for purposes of the definition of
      “Marker Rate”, REMIC I Regular Interest I-LTM2, a per annum rate equal to
      One-Month LIBOR plus the related Certificate Margin.

     

    With
      respect to the Class M-3 Certificates and, for purposes of the definition of
      “Marker Rate”, REMIC I Regular Interest I-LTM3, a per annum rate equal to
      One-Month LIBOR plus the related Certificate Margin.

     

    With
      respect to the Class M-4 Certificates and, for purposes of the definition of
      “Marker Rate”, REMIC I Regular Interest I-LTM4, a per annum rate equal to
      One-Month LIBOR plus the related Certificate Margin.

     

    With
      respect to the Class M-5 Certificates and, for purposes of the definition of
      “Marker Rate”, REMIC I Regular Interest I-LTM5, a per annum rate equal to
      One-Month LIBOR plus the related Certificate Margin.

     

    “Opinion
      of Counsel”: A written opinion of counsel, who may, without limitation, be
      salaried counsel for the Depositor, the related Servicer, the Securities
      Administrator or the Master Servicer, acceptable to the Trustee, except that
      any
      opinion of counsel relating to (a) the qualification of any REMIC as a REMIC
      or
      (b) compliance with the REMIC Provisions must be an opinion of Independent
      counsel.

     

    “Optional
      Termination Date”: The Distribution Date on which the aggregate principal
      balance of the Mortgage Loans (and properties acquired in respect thereof)
      remaining in the Trust Fund as of the last day of the related Due Period is
      less
      than or equal to 10% of the aggregate principal balance of the Mortgage Loans
      as
      of the Cut-off Date.

     

    “Overcollateralization
      Amount”: With respect to any Distribution Date, the excess, if any, of (a) the
      sum of the aggregate Scheduled Principal Balances of the Mortgage Loans and
      REO
      Properties immediately following such Distribution Date over (b) the sum of
      the
      aggregate Certificate Principal Balances of the Class A Certificates, the
      Mezzanine Certificates and the Class P Certificates as of such Distribution
      Date
      (after taking into account the payment of the Principal Remittance Amount on
      such Distribution Date).

     

    “Overcollateralization
      Increase Amount”: With respect to any Distribution Date is the amount of Net
      Monthly Excess Cashflow actually applied as an accelerated payment of principal
      to the Classes of Offered Certificates then entitled to distributions of
      principal to the extent the Required Overcollateralization Amount exceeds the
      Overcollateralization Amount.

     

    “Overcollateralization
      Reduction Amount”: With respect to any Distribution Date, the lesser of (i) the
      amount by which the Overcollateralization Amount exceeds the Required
      Overcollateralization Amount and (ii) the Principal Remittance Amount; provided
      however that on any Distribution Date on which a Trigger Event is in effect,
      the
      Overcollateralization Reduction Amount shall equal zero.

     

    “Ownership
      Interest”: As to any 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,
      as owner or as pledgee.

     

    “P&I
      Advance”: As to any Mortgage Loan or REO Property, any advance made by a
      Servicer in respect of any Determination Date pursuant to Section 5.03 of
      this Agreement or pursuant to the Servicing Agreement, an Advance Financing
      Person pursuant to Section 3.25 of this Agreement or in respect of any
      Distribution Date by a successor Servicer pursuant to Section 8.02 of this
      Agreement or pursuant to the Servicing Agreement (which advances shall not
      include principal or interest shortfalls due to bankruptcy proceedings or
      application of the Relief Act or similar state or local laws.)

     

    “Pass-Through
      Rate”: With respect to the Class A Certificates and the Mezzanine Certificates
      and any Distribution Date, a rate per annum equal to the lesser of (i) the
      One-Month LIBOR Pass-Through Rate for such Distribution Date and (ii) the
      applicable Net WAC Pass- Through Rate for the Distribution Date.

     

    With
      respect to the Class CE-1 Certificates and any Distribution Date, a rate per
      annum equal to the percentage equivalent of a fraction, the numerator of which
      is the sum of the amounts calculated pursuant to clauses (i) through (x) below,
      and the denominator of which is the aggregate Uncertificated Balances of REMIC
      I
      Regular Interest I-LTAA, REMIC I Regular Interest I-LTA, REMIC I Regular
      Interest I-LTM1, REMIC I Regular Interest I-LTM2, REMIC I Regular Interest
      I-LTM3, REMIC I Regular Interest I-LTM4, REMIC I Regular Interest I-LTM5 and
      REMIC I Regular Interest I-LTZZ. For purposes of calculating the Pass-Through
      Rate for the Class CE-1 Certificates, the numerator is equal to the sum of
      the
      following components:

     

    (i)  the
      REMIC
      I Remittance Rate for REMIC I Regular Interest I-LTAA minus the Marker Rate,
      applied to an amount equal to the Uncertificated Balance of REMIC II Regular
      Interest I-LTAA;

     

    (ii)  the
      REMIC
      I Remittance Rate for REMIC I Regular Interest I-LTA minus the Marker Rate,
      applied to an amount equal to the Uncertificated Balance of REMIC I Regular
      Interest I-LTA;

     

    (iii)  the
      REMIC
      I Remittance Rate for REMIC I Regular Interest I-LTM1 minus the Marker Rate,
      applied to an amount equal to the Uncertificated Balance of REMIC I Regular
      Interest I-LTM1;

     

    (iv)  the
      REMIC
      I Remittance Rate for REMIC I Regular Interest I-LTM2 minus the Marker Rate,
      applied to an amount equal to the Uncertificated Balance of REMIC I Regular
      Interest I-LTM2;

     

    (v)  the
      REMIC
      I Remittance Rate for REMIC I Regular Interest I-LTM3 minus the Marker Rate,
      applied to an amount equal to the Uncertificated Balance of REMIC I Regular
      Interest I-LTM3;

     

    (vi)  the
      REMIC
      I Remittance Rate for REMIC I Regular Interest I-LTM4 minus the Marker Rate,
      applied to an amount equal to the Uncertificated Balance of REMIC I Regular
      Interest I-LTM4;

     

    (vii)  the
      REMIC
      I Remittance Rate for REMIC I Regular Interest I-LTM5 minus the Marker Rate,
      applied to an amount equal to the Uncertificated Balance of REMIC I Regular
      Interest I-LTM5;

     

    (viii)  the
      REMIC
      I Remittance Rate for REMIC I Regular Interest I-LTZZ minus the Marker Rate,
      applied to an amount equal to the Uncertificated Balance of REMIC I Regular
      Interest I-LTZZ; and

     

    (ix)  100%
      of
      the interest on REMIC I Regular Interest I-LTP.

     

    With
      respect to the Class CE-2 Certificates and any Distribution Date, an amount
      equal to 100% of the amounts distributed on REMIC I Regular Interest
      I-LTCE2.

     

    “PCAOB”:
      Means the Public Company Accounting Oversight Board.

     

    “Percentage
      Interest”: With respect to any Class of Certificates (other than the Residual
      Certificates), the undivided percentage ownership in such Class evidenced by
      such Certificate, expressed as a percentage, the numerator of which is the
      initial Certificate Principal Balance represented by such Certificate and the
      denominator of which is the aggregate initial Certificate Principal Balance
      or
      Notional Amount of all of the Certificates of such Class. The Offered
      Certificates are issuable only in minimum Percentage Interests corresponding
      to
      minimum initial Certificate Principal Balances of $25,000 and integral multiples
      of $1.00 in excess thereof. The Class P Certificates are issuable only in
      Percentage Interests corresponding to initial Certificate Principal Balances
      of
      $20 and integral multiples thereof. The Class CE-1 Certificates and the Class
      CE-2 Certificates are issuable only in minimum Percentage Interests
      corresponding to minimum initial Notional Amounts of $10,000 and integral
      multiples of $1.00 in excess thereof; provided, however, that a single
      Certificate of each such Class of Certificates may be issued having a Percentage
      Interest corresponding to the remainder of the aggregate initial Notional Amount
      of such Class or to an otherwise authorized denomination for such Class plus
      such remainder. With respect to any Residual Certificate, the undivided
      percentage ownership in such Class evidenced by such Certificate, as set forth
      on the face of such Certificate. The Residual Certificates are issuable in
      Percentage Interests of 20% and integral multiples of 5% in excess
      thereof.

     

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

     

    “Permitted
      Investments”: Any one or more of the following obligations or securities
      acquired at a purchase price of not greater than par, regardless of whether
      issued by the Depositor, Ocwen, Wells Fargo, the Master Servicer, the Trustee
      or
      any of their respective Affiliates:

     

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

     

    (ii)  (A)
      demand and time deposits in, certificates of deposit of, bankers’ acceptances
      issued by or federal funds sold by any depository institution or trust company
      (including the Trustee or its agent acting in their respective commercial
      capacities) incorporated under the laws of the United States of America or
      any
      state thereof and subject to supervision and examination by federal and/or
      state
      authorities, so long as, at the time of such investment or contractual
      commitment providing for such investment, such depository institution or trust
      company (or, if the only Rating Agency is S&P, in the case of the principal
      depository institution in a depository institution holding company, debt
      obligations of the depository institution holding company) or its ultimate
      parent has a short-term uninsured debt rating in the highest available rating
      category of Moody’s, Fitch and S&P and provided that each such investment
      has an original maturity of no more than 365 days; and provided further that,
      if
      the only Rating Agency is S&P and if the depository or trust company is a
      principal subsidiary of a bank holding company and the debt obligations of
      such
      subsidiary are not separately rated, the applicable rating shall be that of
      the
      bank holding company; and, provided further that, if the original maturity
      of
      such short-term obligations of a domestic branch of a foreign depository
      institution or trust company shall exceed 30 days, the short-term rating of
      such
      institution shall be A-1+ in the case of S&P if S&P is the Rating
      Agency; and (B) any other demand or time deposit or deposit which is fully
      insured by the FDIC;

     

    (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 principal) rated A-1+ or higher by S&P, F-1 or
      higher by Fitch and A-2 or higher by Moody’s, 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 prices plus
      accrued interest, (B) pursuant to such valuation, be equal, at all times, to
      105% of the cash transferred by a party in exchange for such collateral and
      (C)
      be delivered to such party or, if such party is supplying the collateral, an
      agent for such party, 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 that are issued by any corporation
      incorporated under the laws of the United States of America and that are rated
      by each Rating Agency that rates such securities in its highest long-term
      unsecured rating categories at the time of such investment or contractual
      commitment providing for such investment;

     

    (v)  commercial
      paper (including both non-interest-bearing discount obligations and
      interest-bearing obligations payable on demand or on a specified date not more
      than 30 days after the date of acquisition thereof) that is rated by each Rating
      Agency that rates such securities in its highest short-term unsecured debt
      rating available at the time of such investment;

     

    (vi)  units
      of
      money market funds that have been rated “AAA” by Fitch (if rated by Fitch),
“AAA” by S&P or “Aaa” by Moody’s including any such money market fund
      managed or advised by the Master Servicer, the Trustee or any of their
      Affiliates; and

     

    (vii)  if
      previously confirmed in writing to the Trustee, any other demand, money market
      or time deposit, or any other obligation, security or investment, as may be
      acceptable to the Rating Agencies as a permitted investment of funds backing
      securities having ratings equivalent to its highest initial rating of the Class
      A Certificates;

     

    provided,
      however, that no instrument described hereunder shall evidence either the right
      to receive (a) only interest with respect to the obligations underlying such
      instrument or (b) both principal and interest payments derived from obligations
      underlying such instrument and the interest and principal payments with respect
      to such instrument provide a yield to maturity at par greater than 120% of
      the
      yield to maturity at par of the underlying obligations.

     

    “Permitted
      Transferee”: Any Transferee of a Residual Certificate other than a Disqualified
      Organization or Non-United States Person.

     

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

     

    “Plan”:
      Any employee benefit plan or certain other retirement plans and arrangements,
      including individual retirement accounts and annuities, Keogh plans and bank
      collective investment funds and insurance company general or separate accounts
      in which such plans, accounts or arrangements are invested, that are subject
      to
      ERISA or Section 4975 of the Code.

     

    “Prepayment
      Assumption”: A prepayment rate for the Mortgage Loans of 25% CPR. The Prepayment
      Assumption is used solely for determining the accrual of original issue discount
      on the Certificates for federal income tax purposes. A CPR (or Constant
      Prepayment Rate) represents an annualized constant assumed rate of prepayment
      each month of a pool of mortgage loans relative to its outstanding principal
      balance for the life of such pool.

     

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

     

    “Prepayment
      Charge Schedule”: As of any date, the list of Mortgage Loans providing for a
      Prepayment Charge included in the Trust Fund on such date, attached hereto
      as
      Schedule 2 (including the prepayment charge summary attached thereto). The
      Depositor shall deliver or cause the delivery of the Prepayment Charge Schedule
      to the related Servicer, the Master Servicer and the Trustee on the Closing
      Date. The Prepayment Charge Schedule shall set forth the following information
      with respect to each Prepayment Charge:

     

    (i)  the
      Mortgage Loan identifying number;

     

    (ii)  a
      code
      indicating the type of Prepayment Charge;

     

    (iii)  the
      date
      on which the first Monthly Payment was due on the related Mortgage
      Loan;

     

    (iv)  the
      term
      of the related Prepayment Charge;

     

    (v)  the
      original Scheduled Principal Balance of the related Mortgage Loan;
      and

     

    (vi)  the
      Scheduled Principal Balance of the related Mortgage Loan as of the Cut-off
      Date.

     

    “Prepayment
      Interest Excess”: With respect to each Ocwen Mortgage Loan or Wells Fargo
      Mortgage Loan that was the subject of a Principal Prepayment in full during
      the
      portion of the related Prepayment Period occurring between the first day of
      the
      calendar month in which such Distribution Date occurs and (i) with respect
      to
      Ocwen, the Determination Date of the calendar month in which such Distribution
      Date occurs, and (ii) with respect to Wells Fargo, the 13th
      day of
      the month in which such Distribution Date occurs, an amount equal to interest
      (to the extent received) at the applicable Net Mortgage Rate on the amount
      of
      such Principal Prepayment for the number of days commencing on the first day
      of
      the calendar month in which such Distribution Date occurs and ending on the
      last
      date through which interest is collected from the related Mortgagor. Ocwen
      and
      Wells Fargo may withdraw such Prepayment Interest Excess from the related
      Collection Account in accordance with Section 3.09(a)(x) of this Agreement.
      The entitlement of SPS, if any, with respect to Prepayment Interest Excess
      is
      set forth in the Servicing Agreement.

     

    “Prepayment
      Interest Shortfall”: With respect to any Distribution Date, for each such
      Mortgage Loan that was the subject of a Principal Prepayment in full or in
      part
      during the portion of the related Prepayment Period occurring between the first
      day of the related Prepayment Period and the last day of the calendar month
      preceding the month in which such Distribution Date occurs that was applied
      by
      the related Servicer to reduce the outstanding principal balance of such
      Mortgage Loan on a date preceding the Due Date in the succeeding Prepayment
      Period, an amount equal to interest at the applicable Net Mortgage Rate on
      the
      amount of such Principal Prepayment for the number of days commencing on the
      date on which the prepayment is applied and ending on the last day of the
      calendar month preceding such Distribution Date. The obligations of Ocwen,
      Wells
      Fargo and the Master Servicer in respect of any Prepayment Interest Shortfall
      are set forth in Section 3.22 and Section 4.19, respectively of this
      Agreement. The obligations of SPS in respect of any Prepayment Interest
      Shortfalls are set forth in the Servicing Agreement.

     

    “Prepayment
      Period”: With respect to (i) the Ocwen Mortgage Loans and any Distribution Date,
      the calendar month preceding the month in which the related Distribution Date
      occurs with respect to Principal Prepayments in part, and the period beginning
      on the 16th
      day of
      the month preceding the related Distribution Date (or, the period commencing
      on
      the Cut-off Date, in connection with the first Prepayment Period) and ending
      on
      the 15th day of the month in which such Distribution Date occurs with respect
      to
      Principal Prepayments in full, (ii) the Wells Fargo Mortgage Loans, the calendar
      month preceding the month in which the related Distribution Date occurs with
      respect to Principal Prepayments in part, and the period beginning on the
      14th
      day of
      the month preceding the related Distribution Date (or the period commencing
      on
      the Cut-off Date, in connection with the first Prepayment Period) and ending
      on
      the 13th
      day of
      the month in which such Distribution Date occurs with respect to Principal
      Prepayments in full. With respect to the SPS Mortgage Loans, the period
      specified in the Servicing Agreement.

     

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

     

    “Principal
      Distribution Amount”: With respect to any Distribution Date will be the sum of
      (i) the principal portion of all Monthly Payments on the Mortgage Loans due
      during the related Due Period, whether or not received on or prior to the
      related Determination Date; (ii) the principal portion of all proceeds received
      in respect of the repurchase of a Mortgage Loan or, in the case of a
      substitution, certain amounts representing a principal adjustment, during the
      immediately preceding calendar month pursuant to or as contemplated by
      Section 2.03, Section 3.13(c) and Section 10.01 of this
      Agreement; (iii) the principal portion of all other unscheduled collections,
      including Insurance Proceeds, Liquidation Proceeds, Subsequent Recoveries,
      and
      all Principal Prepayments in full and in part received during the related
      Prepayment Period, to the extent applied as recoveries of principal on the
      Mortgage Loans, net in each case of payments or reimbursements to the Trustee,
      the Custodians, the Master Servicer, the Credit Risk Manager, the Securities
      Administrator or the Servicers and (iv) the amount of any Overcollateralization
      Increase Amount for such Distribution Date minus (v) the amount of any
      Overcollateralization Reduction Amount for such Distribution Date.

     

    “Principal
      Remittance Amount”: With respect to any Distribution Date will be the sum of the
      amounts described in clauses (i) through (iii) of the definition of Principal
      Distribution Amount.

     

    “Purchase
      Price”: With respect to any Mortgage Loan or REO Property to be purchased
      pursuant to or as contemplated by Section 2.03, Section 3.13(c) or
      Section 10.01 of this Agreement, and as confirmed by a certification of a
      Servicing Officer of the related Servicer to the Trustee, an amount equal to
      the
      sum of (i) 100% of the Scheduled Principal Balance thereof as of the date of
      purchase (or such other price as provided in Section 10.01 of this
      Agreement), (ii) in the case of (x) a Mortgage Loan, accrued interest on such
      Scheduled Principal Balance at the applicable Net Mortgage Rate in effect from
      time to time from the Due Date as to which interest was last covered by a
      payment by the Mortgagor or a P&I Advance by a Servicer, which payment or
      P&I Advance had as of the date of purchase been distributed pursuant to
      Section 5.01 of this Agreement, through the end of the calendar month in
      which the purchase is to be effected and (y) an REO Property, the sum of (1)
      accrued interest on such Scheduled Principal Balance at the applicable Net
      Mortgage Rate in effect from time to time from the Due Date as to which interest
      was last covered by a payment by the Mortgagor or a P&I Advance by a
      Servicer through the end of the calendar month immediately preceding the
      calendar month in which such REO Property was acquired, plus (2) REO Imputed
      Interest for such REO Property for each calendar month commencing with the
      calendar month in which such REO Property was acquired and ending with the
      calendar month in which such purchase is to be effected, net of the total of
      all
      net rental income, Insurance Proceeds, Liquidation Proceeds and P&I Advances
      that as of the date of purchase had been distributed as or to cover REO Imputed
      Interest pursuant to Section 5.01 of this Agreement, (iii) any unreimbursed
      Servicing Advances and P&I Advances (including Nonrecoverable P&I
      Advances and Nonrecoverable Servicing Advances) and any unpaid Servicing Fees
      allocable to such Mortgage Loan or REO Property, (iv) any amounts previously
      withdrawn from the related Collection Account pursuant to
      Section 3.09(a)(ix) and Section 3.13(b) of this Agreement or the
      Custodial Account pursuant to corresponding sections of the Servicing Agreement
      and (v) in the case of a Mortgage Loan required to be purchased pursuant to
      Section 2.03 of this Agreement, expenses reasonably incurred or to be
      incurred by a Servicer or the Trustee in respect of the breach or defect giving
      rise to the purchase obligation and any costs and damages incurred by the Trust
      Fund and the Trustee in connection with any violation by any such Mortgage
      Loan
      of any predatory or abusive lending law.

     

    “QIB”:
      As
      defined in Section 6.01(d).

     

    “Qualified
      Substitute Mortgage Loan”: A mortgage loan substituted for a Deleted Mortgage
      Loan pursuant to the terms of this Agreement which must, on the date of such
      substitution, (i) have an outstanding principal balance, after application
      of
      all scheduled payments of principal and interest due during or prior to the
      month of substitution, not in excess of the Scheduled Principal Balance of
      the
      Deleted Mortgage Loan as of the Due Date in the calendar month during which
      the
      substitution occurs, (ii) have a Mortgage Rate not less than (and not more
      than
      one percentage point in excess of) the Mortgage Rate of the Deleted Mortgage
      Loan, (iii) if the mortgage loan is an Adjustable Rate Mortgage Loan, have
      a
      Maximum Mortgage Rate not less than the Maximum Mortgage Rate on the Deleted
      Mortgage Loan, (iv) if the mortgage loan is an Adjustable Rate Mortgage Loan,
      have a Minimum Mortgage Rate not less than the Minimum Mortgage Rate of the
      Deleted Mortgage Loan, (v) if the mortgage loan is an Adjustable Rate Mortgage
      Loan, have a Gross Margin equal to the Gross Margin of the Deleted Mortgage
      Loan, (vi) if the mortgage loan is an Adjustable Rate Mortgage Loan, have a
      next
      Adjustment Date not more than two months later than the next Adjustment Date
      on
      the Deleted Mortgage Loan, (vii) have a remaining term to maturity not greater
      than (and not more than one year less than) that of the Deleted Mortgage Loan,
      (viii) have the same Due Date as the Due Date on the Deleted Mortgage Loan,
      (ix)
      have a Loan-to-Value Ratio as of the date of substitution equal to or lower
      than
      the Loan-to-Value Ratio of the Deleted Mortgage Loan as of such date, (x) be
      secured by the same lien priority on the related Mortgaged Property as the
      Deleted Mortgage Loan, (xi) have a credit grade at least equal to the credit
      grading assigned on the Deleted Mortgage Loan, (xii) be a “qualified mortgage”
as defined in the REMIC Provisions and (xiii) conform to each representation
      and
      warranty set forth in Section 6 of the Mortgage Loan Purchase Agreement
      applicable to the Deleted Mortgage Loan. In the event that one or more mortgage
      loans are substituted for one or more Deleted Mortgage Loans, the amounts
      described in clause (i) hereof shall be determined on the basis of aggregate
      principal balances, the Mortgage Rates described in clause (ii) hereof shall
      be
      determined on the basis of weighted average Mortgage Rates, the terms described
      in clause (vii) hereof shall be determined on the basis of weighted average
      remaining term to maturity, the Loan-to-Value Ratios described in clause (ix)
      hereof shall be satisfied as to each such mortgage loan, the credit grades
      described in clause (x) hereof shall be satisfied as to each such mortgage
      loan
      and, except to the extent otherwise provided in this sentence, the
      representations and warranties described in clause (xii) hereof must be
      satisfied as to each Qualified Substitute Mortgage Loan or in the aggregate,
      as
      the case may be.

     

    “Rate/Term
      Refinancing”: A Refinanced Mortgage Loan, the proceeds of which are not more
      than a nominal amount in excess of the existing first mortgage loan and any
      subordinate mortgage loan on the related Mortgaged Property and related closing
      costs, and were used exclusively (except for such nominal amount) to satisfy
      the
      then existing first mortgage loan and any subordinate mortgage loan of the
      Mortgagor on the related Mortgaged Property and to pay related closing
      costs.

     

    “Rating
      Agency or Rating Agencies”: Fitch and S&P or their successors. If such
      agencies or their successors are no longer in existence, “Rating Agencies” shall
      be such nationally recognized statistical rating agencies, or other comparable
      Persons, designated by the Depositor, notice of which designation shall be
      given
      to the Trustee and the Servicers.

     

    “Realized
      Loss”: With respect to each Mortgage Loan as to which a Final Recovery
      Determination has been made, an amount (not less than zero), as reported by
      the
      related Servicer to the Master Servicer (in substantially the form of Schedule
      4
      hereto, or another form mutually acceptable to the related Servicer and the
      Master Servicer), equal to (i) the unpaid principal balance of such Mortgage
      Loan as of the commencement of the calendar month in which the Final Recovery
      Determination was made, plus (ii) accrued interest from the Due Date as to
      which
      interest was last paid by the Mortgagor through the end of the calendar month
      in
      which such Final Recovery Determination was made, calculated in the case of
      each
      calendar month during such period (A) at an annual rate equal to the annual
      rate
      at which interest was then accruing on such Mortgage Loan and (B) on a principal
      amount equal to the Scheduled Principal Balance of such Mortgage Loan as of
      the
      close of business on the Distribution Date during such calendar month, plus
      (iii) any amounts previously withdrawn from the related Collection Account
      or
      the Custodial Account in respect of such Mortgage Loan pursuant to
      Section 3.09(a)(ix) and Section 3.13(b) of this Agreement or pursuant
      to corresponding sections of the Servicing Agreement, minus (iv) the proceeds,
      if any, received in respect of such Mortgage Loan during the calendar month
      in
      which such Final Recovery Determination was made, net of amounts that are
      payable therefrom to the related Servicer with respect to such Mortgage Loan
      pursuant to Section 3.09(a)(iii) of this Agreement or pursuant to the
      Servicing Agreement.

     

    With
      respect to any REO Property as to which a Final Recovery Determination has
      been
      made, an amount (not less than zero) equal to (i) the unpaid principal balance
      of the related Mortgage Loan as of the date of acquisition of such REO Property
      on behalf of REMIC I, plus (ii) accrued interest from the Due Date as to which
      interest was last paid by the Mortgagor in respect of the related Mortgage
      Loan
      through the end of the calendar month immediately preceding the calendar month
      in which such REO Property was acquired, calculated in the case of each calendar
      month during such period (A) at an annual rate equal to the annual rate at
      which
      interest was then accruing on the related Mortgage Loan and (B) on a principal
      amount equal to the Scheduled Principal Balance of the related Mortgage Loan
      as
      of the close of business on the Distribution Date during such calendar month,
      plus (iii) REO Imputed Interest for such REO Property for each calendar month
      commencing with the calendar month in which such REO Property was acquired
      and
      ending with the calendar month in which such Final Recovery Determination was
      made, plus (iv) any amounts previously withdrawn from the related Collection
      Account or the Custodial Account in respect of the related Mortgage Loan
      pursuant to Section 3.09(a)(ix) and Section 3.13(b) of this Agreement
      or pursuant to corresponding sections of the Servicing Agreement, as applicable,
      minus (v) the aggregate of all P&I Advances and Servicing Advances (in the
      case of Servicing Advances, without duplication of amounts netted out of the
      rental income, Insurance Proceeds and Liquidation Proceeds described in clause
      (vi) below) made by the related Servicer in respect of such REO Property or
      the
      related Mortgage Loan for which the related Servicer has been or, in connection
      with such Final Recovery Determination, will be reimbursed pursuant to
      Section 3.21 of this Agreement or pursuant to the Servicing Agreement out
      of rental income, Insurance Proceeds and Liquidation Proceeds received in
      respect of such REO Property, minus (vi) the total of all net rental income,
      Insurance Proceeds and Liquidation Proceeds received in respect of such REO
      Property that has been, or in connection with such Final Recovery Determination,
      will be transferred to the Distribution Account pursuant to Section 3.21 of
      this Agreement or pursuant to the Servicing Agreement.

     

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

     

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

     

    To
      the
      extent the related Servicer receives Subsequent Recoveries, with respect to
      any
      Mortgage Loan, the amount of Realized Loss with respect to that Mortgage Loan
      will be reduced to the extent such recoveries are applied to reduce the
      Certificate Principal Balance of any Class of Certificates on any Distribution
      Date.

     

    “Record
      Date”: With respect to each Distribution Date and the Offered Certificates, the
      Business Day immediately preceding such Distribution Date for so long as such
      Certificates are Book-Entry Certificates. With respect to each Distribution
      Date
      and any other Class of Certificates, including any Definitive Certificates,
      the
      last day of the calendar month immediately preceding the month in which such
      Distribution Date occurs.

     

    “Reference
      Banks”: Barclays Bank PLC, The Tokyo Mitsubishi Bank and National Westminster
      Bank PLC and their successors in interest; provided, however, that if any of
      the
      foregoing banks are not suitable to serve as a Reference Bank, then any leading
      banks selected by the Securities Administrator which are engaged in transactions
      in Eurodollar deposits in the International Eurocurrency market (i) with an
      established place of business in London, (ii) not controlling, under the control
      of or under common control with the Depositor or any Affiliate thereof and
      (iii)
      which have been designated as such by the Securities Administrator.

     

    “Refinanced
      Mortgage Loan”: A Mortgage Loan the proceeds of which were not used to purchase
      the related Mortgaged Property.

     

    “Regular
      Certificate”: Any Class A Certificate, Mezzanine Certificate, Class CE-1
      Certificate, Class CE-2 Certificate or Class P Certificate.

     

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

     

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

     

    “Regulation
      S Permanent Global Certificate”: As defined in
      Section 6.01(c).

     

    “Regulation
      S Temporary Global Certificate”: As defined in
      Section 6.01(c).

     

    “Release
      Date”: The 40th day after the later of (i) commencement of the offering of the
      Class CE-1 Certificates or the Class CE-2 Certificates and (ii) the Closing
      Date.

     

    “Relevant
      Servicing Criteria”: Means the Servicing Criteria applicable to the various
      parties, as set forth on Exhibit E attached hereto. For clarification purposes,
      multiple parties can have responsibility for the same Relevant Servicing
      Criteria. With respect to a Servicing Function Participant engaged by the Master
      Servicer, the Securities Administrator, the Trustee or the Servicer, the term
      “Relevant Servicing Criteria” may refer to a portion of the Relevant Servicing
      Criteria applicable to such parties.

     

    “Relief
      Act”: The Servicemembers Civil Relief Act, as amended, or similar state or local
      laws.

     

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

     

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

     

    “REMIC
      I”: 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 and Prepayment
      Charges as from time to time are subject to this Agreement, 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 required to be maintained pursuant to this
      Agreement and any proceeds thereof; (iv) the Depositor’s rights under the
      Mortgage Loan Purchase Agreement (including any security interest created
      thereby), the Assignment Agreement and the Servicing Agreement; and (v) the
      Collection Accounts, the Custodial Account, the Distribution Account and any
      REO
      Account, and such assets that are deposited therein from time to time and any
      investments thereof, together with any and all income, proceeds and payments
      with respect thereto. Notwithstanding the foregoing, however, REMIC I
      specifically excludes (i) all Prepayment Charges payable in connection with
      Principal Prepayments made before the Cut-off Date, and (ii) the Reserve Fund
      and any amounts on deposit therein from time to time and any proceeds
      thereof.

     

    “REMIC
      I
      Interest Loss Allocation Amount”: With respect to any Distribution Date, an
      amount equal to (a) the product of (i) the aggregate Scheduled Principal Balance
      of the Mortgage Loans and REO Properties then outstanding and (ii) the REMIC
      I
      Remittance Rate for REMIC I Regular Interest I-LTAA minus the Marker Rate,
      divided by (b) 12.

     

    “REMIC
      I
      Overcollateralization Amount”: With respect to any date of determination, (i) 1%
      of the aggregate Uncertificated Balances of the REMIC I Regular Interests (other
      than the REMIC I Regular Interest I-LTP) minus (ii) the aggregate of the
      Uncertificated Balances of REMIC I Regular Interest I-LTA, REMIC I Regular
      Interest I-LTM1, REMIC I Regular Interest I-LTM2, REMIC I Regular Interest
      I-LTM3, REMIC I Regular Interest I-LTM4 and REMIC I Regular Interest I-LTM5,
      in
      each case as of such date of determination.

     

    “REMIC
      I
      Principal Loss Allocation Amount”: With respect to any Distribution Date, an
      amount equal to (a) the product of (i) the aggregate Scheduled Principal Balance
      of the Mortgage Loans and REO Properties then outstanding and (ii) 1 minus
      a
      fraction, the numerator of which is two times the aggregate of the
      Uncertificated Balances of REMIC I Regular Interest I-LTA, REMIC I Regular
      Interest I-LTM1, REMIC I Regular Interest I-LTM2, REMIC I Regular Interest
      I-LTM3, REMIC I Regular Interest I-LTM4, REMIC I Regular Interest I-LTM5 and
      the
      denominator of which is the aggregate of the Uncertificated Balances of REMIC
      I
      Regular Interest I-LTA, REMIC I Regular Interest I-LTM1, REMIC I Regular
      Interest I-LTM2, REMIC I Regular Interest I-LTM3, REMIC I Regular Interest
      I-LTM4, REMIC I Regular Interest I-LTM5 and REMIC I Regular Interest
      I-LTZZ.

     

    “REMIC
      I
      Regular Interest”: Any of the separate non-certificated beneficial ownership
      interests in REMIC I issued hereunder and designated as a “regular interest” in
      REMIC I. Each REMIC I Regular Interest shall accrue interest at the related
      REMIC I Remittance 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 Balance as set forth in
      the
      Preliminary Statement hereto. The designations for the respective REMIC I
      Regular Interests are set forth in the Preliminary Statement
      hereto.

     

    “REMIC
      I
      Regular Interest I-LTAA”: One of the separate non-certificated beneficial
      ownership interests in REMIC I issued hereunder and designated as a Regular
      Interest in REMIC I. REMIC I Regular Interest I-LTAA shall accrue interest
      at
      the related REMIC I Remittance 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 Balance
      as
      set forth in the Preliminary Statement hereto.

     

    “REMIC
      I
      Regular Interest I-LTA”: One of the separate non-certificated beneficial
      ownership interests in REMIC I issued hereunder and designated as a Regular
      Interest in REMIC I. REMIC I Regular Interest I-LTA shall accrue interest at
      the
      related REMIC I Remittance 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 Balance
      as
      set forth in the Preliminary Statement hereto.

     

    “REMIC
      I
      Regular Interest I-LTM1”: One of the separate non-certificated beneficial
      ownership interests in REMIC I issued hereunder and designated as a Regular
      Interest in REMIC I. REMIC I Regular Interest I-LTM1 shall accrue interest
      at
      the related REMIC I Remittance 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 Balance
      as
      set forth in the Preliminary Statement hereto.

     

    “REMIC
      I
      Regular Interest I-LTM2”: One of the separate non-certificated beneficial
      ownership interests in REMIC I issued hereunder and designated as a Regular
      Interest in REMIC I. REMIC I Regular Interest I-LTM2 shall accrue interest
      at
      the related REMIC I Remittance 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 Balance
      as
      set forth in the Preliminary Statement hereto.

     

    “REMIC
      I
      Regular Interest I-LTM3”: One of the separate non-certificated beneficial
      ownership interests in REMIC I issued hereunder and designated as a Regular
      Interest in REMIC I. REMIC I Regular Interest I-LTM3 shall accrue interest
      at
      the related REMIC I Remittance 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 Balance
      as
      set forth in the Preliminary Statement hereto.

     

    “REMIC
      I
      Regular Interest I-LTM4”: One of the separate non-certificated beneficial
      ownership interests in REMIC I issued hereunder and designated as a Regular
      Interest in REMIC I. REMIC I Regular Interest I-LTM4 shall accrue interest
      at
      the related REMIC I Remittance 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 Balance
      as
      set forth in the Preliminary Statement hereto.

     

    “REMIC
      I
      Regular Interest I-LTM5”: One of the separate non-certificated beneficial
      ownership interests in REMIC I issued hereunder and designated as a Regular
      Interest in REMIC I. REMIC I Regular Interest I-LTM5 shall accrue interest
      at
      the related REMIC I Remittance 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 Balance
      as
      set forth in the Preliminary Statement hereto.

     

    “REMIC
      I
      Regular Interest I-LTP”: One of the separate non-certificated beneficial
      ownership interests in REMIC I issued hereunder and designated as a Regular
      Interest in REMIC I. REMIC I Regular Interest I-LTP shall accrue interest at
      the
      related REMIC I Remittance 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 Balance
      as
      set forth in the Preliminary Statement hereto.

     

    “REMIC
      I
      Regular Interest I-LTZZ”: One of the separate non-certificated beneficial
      ownership interests in REMIC I issued hereunder and designated as a Regular
      Interest in REMIC I. REMIC I Regular Interest I-LTZZ shall accrue interest
      at
      the related REMIC I Remittance 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 Balance
      as
      set forth in the Preliminary Statement hereto.

     

    “REMIC
      I
      Regular Interest I-LTCE2”: One of the separate non-certificated beneficial
      ownership interests in REMIC I issued hereunder and designated as a Regular
      Interest in REMIC I. REMIC I Regular Interest I-LTCE2 shall accrue interest
      at
      the related REMIC I Remittance Rate in effect from time to time. REMIC I Regular
      Interest I-LTCE2 shall not be entitled to distributions of
      principal.

     

    “REMIC
      I
      Remittance Rate”: With respect to REMIC I Regular Interest I-LTAA, REMIC I
      Regular Interest I-LTA, REMIC I Regular Interest I-LTM1, REMIC I Regular
      Interest I-LTM2, REMIC I Regular Interest I-LTM3, REMIC I Regular Interest
      I-LTM4, REMIC I Regular Interest I-LTM5, REMIC I Regular Interest I-LTZZ and
      REMIC I Regular Interest I-LTP, the weighted average of the Net Mortgage Rates
      of the Mortgage Loans. With respect to REMIC I Regular Interest I-LTCE2, a
      weighted average per annum rate, determined on a Mortgage Loan by Mortgage
      Loan
      basis (and solely with respect to the Ocwen Mortgage Loans, Wells Fargo Mortgage
      Loans and SPS Mortgage Loans), equal to the excess, if any, of (i) the excess of
      (a) the Mortgage Rate for each such Mortgage Loan over (b) the sum of the (x)
      Ocwen Servicing Fee Rate, Wells Fargo Servicing Fee Rate or SPS Servicing Fee
      Rate, as applicable, and provided, however, that each such rate shall be subject
      to a cap equal to the Servicing Fee Rate, (y) the Master Servicing Fee Rate
      and
      (z) Credit Risk Management Fee Rate, over (ii) the Net Mortgage Rate of each
      such Mortgage Loan.

     

    “REMIC
      I
      Required Overcollateralization Amount”: 1% of the Required Overcollateralization
      Amount.

     

    “REMIC
      II”: The segregated pool of assets consisting of all of the REMIC I Regular
      Interests conveyed in trust to the Trustee, for the benefit of the REMIC II
      Certificateholders pursuant to Section 2.07 of this Agreement, and all amounts
      deposited therein, with respect to which a separate REMIC election is to be
      made.

     

    “REMIC
      II
      Certificate”: Any Regular Certificate or Class R Certificate.

     

    “REMIC
      II
      Certificateholder”: The Holder of any REMIC II Certificate.

     

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

     

    “Remittance
      Report”: A report by Ocwen or Wells Fargo pursuant to Section 5.03(a) of
      this Agreement or by SPS pursuant to the Servicing Agreement.

     

    “Rents
      from Real Property”: With respect to any REO Property, gross income of the
      character described in Section 856(d) of the Code as being included in the
      term “rents from real property.”

     

    “REO
      Account”: The account or accounts maintained, or caused to be maintained, by
      Ocwen or Wells Fargo in respect of an REO Property pursuant to Section 3.21
      of this Agreement or by SPS pursuant to the Servicing Agreement.

     

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

     

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

     

    “REO
      Principal Amortization”: With respect to any REO Property, for any calendar
      month, the excess, if any, of (a) the aggregate of all amounts received in
      respect of such REO Property during such calendar month, whether in the form
      of
      rental income, sale proceeds (including, without limitation, that portion of
      the
      Termination Price paid in connection with a purchase of all of the Mortgage
      Loans and REO Properties pursuant to Section 10.01 of this Agreement that
      is allocable to such REO Property) or otherwise, net of any portion of such
      amounts (i) payable in respect of the proper operation, management and
      maintenance of such REO Property or (ii) payable or reimbursable to Ocwen or
      Wells Fargo, as applicable, pursuant to Section 3.21(d) of this Agreement
      or SPS pursuant to the Servicing Agreement for unpaid Servicing Fees in respect
      of the related Mortgage Loan and unreimbursed Servicing Advances and P&I
      Advances in respect of such REO Property or the related Mortgage Loan, over
      (b)
      the REO Imputed Interest in respect of such REO Property for such calendar
      month.

     

    “REO
      Property”: A Mortgaged Property acquired by a Servicer or its nominee on behalf
      of REMIC I through foreclosure or deed-in-lieu of foreclosure, as described
      in
      Section 3.21 of this Agreement or by SPS pursuant to the Servicing
      Agreement.

     

    “Reportable
      Event”: Has the meaning set forth in Section 5.06(b) of this
      Agreement.

     

    “Required
      Overcollateralization Amount”: With respect to any Distribution Date (i) prior
      to the Stepdown Date, the product of (a) 5.10% and (b) the aggregate Scheduled
      Principal Balance of the Mortgage Loans as of the Cut-off Date, (ii) on or
      after
      the Stepdown Date provided a Trigger Event is not in effect, the greater of
      (a)
      the product of (x) 10.20% and (y) the aggregate Scheduled Principal Balance
      of
      the Mortgage Loans as of the last day of the related Due Period and (b) an
      amount equal to the product of (x) 0.50% and (y) the aggregate Scheduled
      Principal Balance of the Mortgage Loans as of the Cut-off Date, and (iii) on
      or
      after the Stepdown Date and a Trigger Event is in effect, the Required
      Overcollateralization Amount for the immediately preceding Distribution Date.
      Notwithstanding the foregoing, on and after any Distribution Date following
      the
      reduction of the aggregate Certificate Principal Balance of the Class A
      Certificates and the Mezzanine Certificates to zero, the Required
      Overcollateralization Amount shall be zero.

     

    “Reserve
      Fund”: A fund created pursuant to Section 3.24 which shall be an asset of
      the Trust Fund but which shall not be an asset of any Trust REMIC.

     

    “Reserve
      Interest Rate”: With respect to any Interest Determination Date, the rate per
      annum that the Securities Administrator determines to be either (i) the
      arithmetic mean (rounded upwards if necessary to the nearest whole multiple
      of
      1/16%) of the one-month U.S. dollar lending rates which New York City banks
      selected by the Securities Administrator, after consultation with the Depositor,
      are quoting on the relevant Interest Determination Date to the principal London
      offices of leading banks in the London interbank market or (ii) in the event
      that the Securities Administrator can determine no such arithmetic mean, the
      lowest one-month U.S. dollar lending rate which New York City banks selected
      by
      the Securities Administrator are quoting on such Interest Determination Date
      to
      leading European banks.

     

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

     

    “Residual
      Certificate”: Any one of the Class R Certificates.

     

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

     

    “Responsible
      Officer”: When used with respect to the Trustee, any officer of the Trustee
      having direct responsibility for the administration of this Agreement and,
      with
      respect to a particular matter, to whom such matter is referred because of
      such
      officer’s knowledge of and familiarity with the particular subject.

     

    “Rule
      144A”: As defined in Section 6.01(d).

     

    “S&P”:
      Standard and Poor’s Ratings Service, a division of the McGraw-Hill Companies,
      Inc.

     

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

     

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

     

    “Scheduled
      Principal Balance”: With respect to any Mortgage Loan: (a) as of the Cut-off
      Date, the outstanding principal balance of such Mortgage Loan as of such date
      as
      set forth on the Mortgage Loan Schedule; (b) as of any Due Date subsequent
      to
      the Cut-off Date up to and including the Due Date in the calendar month in
      which
      a Liquidation Event occurs with respect to such Mortgage Loan, the outstanding
      principal balance of such Mortgage Loan as of the Cut-off Date, minus the sum
      of
      (i) the principal portion of each Monthly Payment due on or before such Due
      Date
      but subsequent to the Cut-off Date, whether or not received, (ii) the principal
      portion of all Monthly Payments due before the Cut-off Date and collected by
      the
      related Servicer after the Cut-off Date, (iii) all Principal Prepayments
      received before such Due Date but after the Cut-off Date, (iv) the principal
      portion of all Liquidation Proceeds and Insurance Proceeds received before
      such
      Due Date but after the Cut-off Date, net of any portion thereof that represents
      principal due (without regard to any acceleration of payments under the related
      Mortgage and Mortgage Note) on a Due Date occurring on or before the date on
      which such proceeds were received and (v) any Realized Loss incurred with
      respect thereto as a result of a Deficient Valuation occurring before such
      Due
      Date, but only to the extent such Realized Loss represents a reduction in the
      portion of principal of such Mortgage Loan not yet due (without regard to any
      acceleration of payments under the related Mortgage and Mortgage Note) as of
      the
      date of such Deficient Valuation; and (c) as of any Due Date subsequent to
      the
      occurrence of a Liquidation Event with respect to such Mortgage Loan, zero.
      With
      respect to any REO Property: (a) as of any Due Date subsequent to the date
      of
      its acquisition on behalf of the Trust Fund up to and including the Due Date
      in
      the calendar month in which a Liquidation Event occurs with respect to such
      REO
      Property, an amount (not less than zero) equal to the Scheduled Principal
      Balance of the related Mortgage Loan as of the Due Date in the calendar month
      in
      which such REO Property was acquired, minus the aggregate amount of REO
      Principal Amortization, if any, in respect of REO Property for all previously
      ended calendar months; and (b) as of any Due Date subsequent to the occurrence
      of a Liquidation Event with respect to such REO Property, zero.

     

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

     

    “Securities
      Administrator”: As of the Closing Date, Wells Fargo Bank, National Association
      and thereafter, its respective successors in interest that meet the
      qualifications of this Agreement. The Securities Administrator and the Master
      Servicer shall at all times be the same Person or Affiliates.

     

    “Senior
      Interest Distribution Amount”: With respect to any Distribution Date, an amount
      equal to the sum of (i) the Interest Distribution Amount for such Distribution
      Date for the Class A Certificates and (ii) the Interest Carry Forward Amount,
      if
      any, for such Distribution Date for the Class A Certificates.

     

    “Servicer”:
      Ocwen, Wells Fargo or SPS, or any successor thereto appointed hereunder or
      under
      the Servicing Agreement, as applicable, in connection with the servicing and
      administration of the related Mortgage Loans.

     

    “Servicer
      Event of Default”: One or more of the events described in
      Section 8.01(a).

     

    “Servicer
      Remittance Date”: With respect to any Distribution Date and (i) (A) Wells Fargo,
      on or before the close of business on the 22nd day of the month in which such
      Distribution Date occurs and (B) Ocwen, on or before 12:00 noon New York time
      on
      the 22nd day of the month in which such Distribution Date occurs; provided
      that
      if such 22nd day of a given month is not a Business Day, the Servicer Remittance
      Date for such month shall be the Business Day immediately preceding such 22nd
      day and (ii) SPS, as set forth in the Servicing Agreement.

     

    “Servicer
      Report”: A report (substantially in the form of Schedules 3, 4 and 5 hereto) or
      otherwise in form and substance acceptable to the related Servicer, the Master
      Servicer and the Securities Administrator on an electronic data file or tape
      prepared by the related Servicer pursuant to Section 5.03(a) of this
      Agreement or pursuant to the Servicing Agreement, as applicable, with such
      additions, deletions and modifications as agreed to by the Master Servicer,
      the
      Securities Administrator and the related Servicer.

     

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

     

    “Servicing
      Advances”: The
      customary and reasonable “out-of-pocket” costs and expenses incurred prior to or
      on or after the Cut-off Date (the amounts incurred prior to the Cut-off Date
      shall be identified on the Servicing Advance Schedule by (a) the related
      Servicer with respect to any Mortgage Loans that were transferred to such
      Servicer prior to the Cut-off Date and/or (b) the Depositor with respect to
      any
      Mortgage Loans that were transferred to the related Servicer after the Cut-off
      Date, as applicable) by a Servicer in connection with a default, delinquency
      or
      other unanticipated event by such Servicer in the performance of its servicing
      obligations, including, but not limited to, the cost of (i) the preservation,
      restoration and protection of a Mortgaged Property, (ii) any enforcement or
      judicial proceedings, including but not limited to foreclosures, in respect
      of a
      particular Mortgage Loan, including any expenses incurred in relation to any
      such proceedings that result from the Mortgage Loan being registered on the
      MERS® System, (iii) the management (including reasonable fees in connection
      therewith) and liquidation of any REO Property, (iv) the performance of its
      obligations under Section 3.01, Section 3.07, Section 3.11,
      Section 3.13 and Section 3.21 of this Agreement or under the Servicing
      Agreement, as applicable, and (v) obtaining any legal documentation required
      to
      be included in the Mortgage File and/or correcting any outstanding title issues
      (i.e. any lien or encumbrance on the Mortgaged Property that prevents the
      effective enforcement of the intended lien position) reasonably necessary for
      the related Servicer to perform its obligations under this Agreement or under
      the Servicing Agreement, as applicable. Servicing Advances also include any
      reasonable “out-of-pocket” cost and expenses (including legal fees) incurred by
      the related Servicer in connection with executing and recording instruments
      of
      satisfaction, deeds of reconveyance or Assignments to the extent not recovered
      from the Mortgagor or otherwise payable under this Agreement or under the
      Servicing Agreement, as applicable. The Servicers shall not be required to
      make
      any Nonrecoverable Servicing Advances.

     

    “Servicing
      Advance Schedule”: With respect to any Servicing Advances incurred prior to the
      Cut-off Date, the schedule or schedules provided by (a) the related Servicer
      with respect to any Mortgage Loans that were transferred to such Servicer prior
      to the Cut-off Date and/or (b) the Depositor with respect to any Mortgage Loans
      that were transferred to the related Servicer after the Cut-off Date, as
      applicable, to the Master Servicer and, if such schedule is provided by the
      Depositor, the related Servicer, on the earlier of the date on which such
      Servicer seeks reimbursement for a Servicing Advance made prior to the Cut-off
      Date, which schedule or schedules shall contain the information set forth on
      Schedule 6.

     

    “Servicing
      Agreement”: The Servicing Agreement, dated as of May 31,
      2006,
      by and
      between the Sponsor and SPS, as modified by the Assignment
      Agreement.

     

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

     

    “Servicing
      Fee”: With respect to each Mortgage Loan and for any calendar month, an amount
      equal to one-twelfth of the product of the Servicing Fee Rate multiplied by
      the
      Scheduled Principal Balance of the Mortgage Loans as of the Due Date in the
      preceding calendar month. The Servicing Fee is payable solely from collections
      of interest on the Mortgage Loans or as otherwise provided herein or in the
      Servicing Agreement; provided, however, the Servicers shall only be entitled
      to
      a portion of the servicing fee calculated at the Ocwen Servicing Fee Rate,
      the
      Wells Fargo Servicing Fee Rate or the SPS Servicing Fee Rate, as
      applicable.

     

    “Servicing
      Fee Rate”: 0.50% per annum.

     

    “Servicing
      Function Participant”: Means any Sub-Servicer, Subcontractor or any other
      Person, other than each Servicer, the Master Servicer, each Custodian, the
      Trustee and the Securities Administrator, that is determined to be
“participating in the servicing function” within the meaning of Item 1122 of
      Regulation AB, without regard to any threshold referenced therein.

     

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

     

    “Simple
      Interest Excess”: As of any Determination 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 Scheduled
      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 of Ocwen and Wells Fargo pursuant to Section 3.08(b).
      Each 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 and identified as such on the Mortgage Loan Schedule.

     

    “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 Determination Date for each Simple Interest
      Qualifying Loan, the excess, if any, of (i) 30 days’ interest on the Scheduled
      Principal Balance of such Mortgage Loan 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.

     

    “Single
      Certificate”: With respect to any Class of Certificates (other than the Residual
      Certificates), a hypothetical Certificate of such Class evidencing a Percentage
      Interest for such Class corresponding to an initial Certificate Principal
      Balance of $1,000. With respect to the Residual Certificates, a hypothetical
      Certificate of such Class evidencing a 100% Percentage Interest in such
      Class.

     

    “Sponsor”:
      DB Structured Products, Inc. or its successor in interest, in its capacity
      as
      seller under the Mortgage Loan Purchase Agreement.

     

    “SPS”:
      Select Portfolio Servicing, Inc. or any successor thereto.

     

    “SPS
      Mortgage Loans”: The Mortgage Loans being serviced by SPS pursuant to the
      Servicing Agreement.

     

    “SPS
      Servicing Fee Rate”: 0.40% per annum.

     

    “Startup
      Day”: With respect to each Trust REMIC, the day designated as such pursuant to
      Section 11.01(b) hereof.

     

    “Stepdown
      Date”: The earlier to occur of (i) the later to occur of (a) the Distribution
      Date occurring in July 2009 and (b) the first Distribution Date on which the
      Credit Enhancement Percentage (calculated for this purpose only after taking
      into account collections of principal on the Mortgage Loans but prior to any
      distribution of the Principal Distribution Amount to the holders of the
      Certificates then entitled to distributions of principal on such Distribution
      Date) is equal to or greater than 64.30% and (ii) the first Distribution Date
      following the Distribution Date on which the Certificate Principal Balance
      of
      the Class A Certificates has been reduced to zero.

     

    “Subcontractor”:
      means any vendor, subcontractor or other Person that is not responsible for
      the
      overall servicing of Mortgage Loans but performs one or more discrete functions
      identified in Item 1122(d) of Regulation AB (without regard to any threshold
      percentage specified therein) with respect to Mortgage Loans under the direction
      or authority of any Servicer (or a Sub-Servicer of any Servicer), the Master
      Servicer, the Trustee, the Custodian or the Securities
      Administrator.

     

    “Subordinate
      Certificates”: Collectively, the Mezzanine Certificates and the Class CE-1
      Certificates.

     

    “Subsequent
      Recoveries”: As of any Distribution Date, amounts received during the related
      Prepayment Period by the related Servicer specifically related to a defaulted
      Mortgage Loan or disposition of an REO Property prior to the related Prepayment
      Period that resulted in a Realized Loss, after the liquidation or disposition
      of
      such defaulted Mortgage Loan, net of any amounts reimbursable to such Servicer
      related to obtaining such Subsequent Recovery.

     

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

     

    “Sub-Servicing
      Agreement”: The written contract between a Servicer and a Sub-Servicer relating
      to servicing and administration of certain Mortgage Loans as provided in
      Section 3.02 of this Agreement or the Servicing Agreement, as
      applicable.

     

    “Substitution
      Shortfall Amount”: As defined in Section 2.03 of this
      Agreement.

     

    “Tax
      Returns”: The federal income tax return on Internal Revenue Service Form 1066,
      U.S. Real Estate Mortgage Investment Conduit Income Tax Return, including
      Schedule Q thereto, Quarterly Notice to Residual Interest Holders of REMIC
      Taxable Income or Net Loss Allocation, or any successor forms, to be filed
      on
      behalf of the Trust REMICs under the REMIC Provisions, together with any and
      all
      other information reports or returns that may be required to be furnished to
      the
      Certificateholders or filed with the Internal Revenue Service or any other
      governmental taxing authority under any applicable provisions of federal, state
      or local tax laws.

     

    “Telerate
      Page 3750”: The display designated as page “3750” on the Dow Jones Telerate
      Capital Markets Report (or such other page as may replace page 3750 on that
      report for the purpose of displaying London interbank offered rates of major
      banks).

     

    “Termination
      Price”: As defined in Section 10.01.

     

    “Terminator”:
      As defined in Section 10.01.

     

    “Transfer”:
      Any direct or indirect transfer, sale, pledge, hypothecation, or other form
      of
      assignment of any Ownership Interest in a Certificate.

     

    “Transferee”:
      Any Person who is acquiring by Transfer any Ownership Interest in a
      Certificate.

     

    “Transferor”:
      Any Person who is disposing by Transfer of any Ownership Interest in a
      Certificate.

     

    “Trigger
      Event”: A Trigger Event has occurred with respect to a Distribution Date on or
      after the Stepdown Date if either (x) the Delinquency Percentage exceeds 24.75%
      of the Senior Credit Enhancement Percentage with respect to such Distribution
      Date or (y) the aggregate amount of Realized Losses incurred since the Cut-off
      Date through the last day of the related Due Period divided by the aggregate
      principal balance of the Mortgage Loans as of the Cut-off Date exceeds the
      applicable percentages set forth below with respect to such Distribution
      Date:

     

    
      	
              Distribution
                Date

            	
              Percentage

            
	
              July
                2009 to June 2010

            	
              3.75%,
                plus 1/12 of 1.25% for each month thereafter

            
	
              July
                2010 to June 2011

            	
              5.00%,
                plus 1/12 of 1.00% for each month thereafter

            
	
              July
                2011 to June 2012

            	
              6.00%,
                plus 1/12 of 0.25% for each month thereafter

            
	
              July
                2012 and thereafter

            	
              6.25%

            

    

    

    “Trust”:
      ACE Securities Corp., Home Equity Loan Trust, Series 2006-SD2, the trust created
      hereunder.

     

    “Trust
      Fund”: Collectively, all of the assets of REMIC I, REMIC II and the Reserve Fund
      and any amounts on deposit therein and any proceeds thereof, and the Prepayment
      Charges.

     

    “Trust
      REMIC”: REMIC I or REMIC II.

     

    “Trustee”:
      HSBC Bank USA, National Association a national banking association, or its
      successor in interest, or any successor trustee appointed as herein
      provided.

     

    “Uncertificated
      Balance”: The principal amount of each of the REMIC I Regular Interests
      outstanding as of any date of determination. As of the Closing Date, the
      Uncertificated Balance of each REMIC I Regular Interest shall equal the amount
      set forth in the Preliminary Statement hereto as its initial uncertificated
      balance. On each Distribution Date, the Uncertificated Balance of each REMIC
      I
      Regular Interest shall be reduced by all distributions of principal made on
      such
      REMIC I Regular Interest on such Distribution Date pursuant to Section 5.01
      of
      this Agreement and, if and to the extent necessary and appropriate, shall be
      further reduced on such Distribution Date by Realized Losses as provided in
      Section 5.04 of this Agreement and the Uncertificated Balance of REMIC I Regular
      Interest I-LTZZ shall be increased by interest deferrals as provided in Section
      5.01(a)(1)(i) of this Agreement. The Uncertificated Balance of each REMIC I
      Regular Interest shall never be less than zero.

     

    “Uncertificated
      Interest”: With respect to any REMIC I Regular Interest for any Distribution
      Date, one month’s interest at the REMIC I Remittance Rate applicable to such
      REMIC I Regular Interest for such Distribution Date, accrued on the
      Uncertificated Balance thereof immediately prior to such Distribution Date.
      Uncertificated Interest in respect of each REMIC I Regular Interests shall
      accrue on the basis of a 360-day year consisting of twelve 30-day months.
      Uncertificated Interest with respect to each Distribution Date, as to any REMIC
      I Regular Interest, shall be reduced by an amount equal to the sum of (a) the
      aggregate Prepayment Interest Shortfall, if any, for such Distribution Date
      to
      the extent not covered by payments pursuant to Section 3.22 or Section 4.19
      of
      this Agreement or pursuant to the Servicing Agreement and (b) the aggregate
      amount of any Relief Act Interest Shortfall, if any allocated, in each case,
      to
      such REMIC I Regular Interest or REMIC I Regular Interest pursuant to Section
      1.02 of this Agreement. In addition, Uncertificated Interest with respect to
      each Distribution Date, as to any Uncertificated REMIC Regular Interest, shall
      be reduced by Realized Losses, if any, allocated to such Uncertificated REMIC
      Regular Interest pursuant to Section 1.02 and Section 5.04 of this
      Agreement.

     

    “Uninsured
      Cause”: Any cause of damage to a Mortgaged Property such that the complete
      restoration of such property is not fully reimbursable by the hazard insurance
      policies required to be maintained pursuant to Section 3.11 of this
      Agreement.

     

    “United
      States Person”: 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 or any political subdivision thereof (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 any Class R Certificate, 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 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, 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 I 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.
      The term “United States” shall have the meaning set forth in Section 7701
      of the Code.

     

    “Value”:
      With respect to any Mortgaged Property, the lesser of (i) the lesser of (a)
      the
      value thereof as determined by an appraisal made for the related originator
      of
      the Mortgage Loan at the time of origination of the Mortgage Loan by an
      appraiser who met the minimum requirements of Fannie Mae and Freddie Mac and
      (b)
      the value thereof as determined by a review appraisal conducted by the related
      originator of the Mortgage Loan in accordance with the related originator’s
      underwriting guidelines, (ii) the purchase price paid for the related Mortgaged
      Property by the Mortgagor with the proceeds of the Mortgage Loan; provided,
      however, (A) in the case of a Refinanced Mortgage Loan, such value of the
      Mortgaged Property is based solely upon the lesser of (1) the value determined
      by an appraisal made for the related originator of the Mortgage Loan of such
      Refinanced Mortgage Loan at the time of origination of such Refinanced Mortgage
      Loan by an appraiser who met the minimum requirements of Fannie Mae and Freddie
      Mac and (2) the value thereof as determined by a review appraisal conducted
      by
      the related originator of the Mortgage Loan in accordance with the related
      originator’s underwriting guidelines, and (B) in the case of a Mortgage Loan
      originated in connection with a “lease-option purchase,” such value of the
      Mortgaged Property is based on the lower of the value determined by an appraisal
      made for the related originator of such Mortgage Loan at the time of origination
      or the sale price of such Mortgaged Property if the “lease option purchase
      price” was set less than 12 months prior to origination, and is based on the
      value determined by an appraisal made for the originator of such Mortgage Loan
      at the time of origination if the “lease option purchase price” was set 12
      months or more prior to origination and (iii) the value determined pursuant
      to a
      broker’s price opinion or an automated value model conducted on behalf of the
      Sponsor.

     

    “Verification
      Report”: As defined in Section 4.20.

     

    “Voting
      Rights”: The portion of the voting rights of all of the Certificates which is
      allocated to any such Certificate. With respect to any date of determination,
      98% of all Voting Rights will be allocated among the Holders of the Class A
      Certificates, the Mezzanine Certificates and the Class CE-1 Certificates in
      proportion to the then outstanding Certificate Principal Balances of their
      respective Certificates, 1% of all Voting Rights will be allocated among the
      Holders of the Class P Certificates and 1% of all Voting Rights will be
      allocated among the Holders of the Class R Certificates. The Voting Rights
      allocated to each Class of Certificate shall be allocated among Holders of
      each
      such Class in accordance with their respective Percentage Interests as of the
      most recent Record Date.

     

    “Wells
      Fargo”: Wells Fargo Bank, National Association or any successor thereto, in its
      capacity as a Servicer hereunder.

     

    “Wells
      Fargo Custodial Agreement”: The Custodial Agreement dated as of May 31, 2006,
      among the Trustee, Wells Fargo as a Servicer, Ocwen and Wells Fargo Bank,
      National Association as a Custodian, as may be amended or supplemented from
      time
      to time.

     

    “Wells
      Fargo Mortgage Loans”: The Mortgage Loans serviced by Wells Fargo pursuant to
      the terms of this Agreement as specified on the Mortgage Loan
      Schedule.

     

    “Wells
      Fargo Servicing Fee Rate”: 0.50% per annum.

     

    SECTION
      1.02  Allocation
      of Certain Interest Shortfalls.

     

    For
      purposes of calculating the amount of Accrued Certificate Interest and the
      amount of the Interest Distribution Amount for the Class A, Mezzanine and Class
      CE-1 Certificates for any Distribution Date, (1) the aggregate amount of any
      Prepayment Interest Shortfalls (to the extent not covered by payments by the
      related Servicer pursuant to Section 3.22 of this Agreement or pursuant to
      the Servicing Agreement or by the Master Servicer pursuant to Section 4.19
      of this Agreement) and any Relief Act Interest Shortfalls incurred in respect
      of
      the Mortgage Loans for any Distribution Date shall be allocated first, to the
      Class CE-1 Certificates, second, to the Class M-5 Certificates, third, to the
      Class M-4 Certificates, fourth, to the Class M-3 Certificates, fifth, to the
      Class M-2 Certificates, sixth, to the Class M-1 Certificates and seventh, to
      the
      Class A Certificates, in each case based on, and to the extent of, one month’s
      interest at the then applicable respective Pass-Through Rate on the respective
      Certificate Principal Balance or Notional Amount, as applicable, of each such
      Certificate and (2) the aggregate amount of any Realized Losses allocated to
      the
      Mezzanine Certificates and Net WAC Rate Carryover Amounts paid to the Class
      A
      Certificates and the Mezzanine Certificates incurred for any Distribution Date
      shall be allocated to the Class CE-1 Certificates on a pro rata basis based
      on,
      and to the extent of, one month’s interest at the then applicable respective
      Pass-Through Rate on the respective Certificate Principal Balance or Notional
      Amount thereof, as applicable.

     

    For
      purposes of calculating the amount of Uncertificated Interest for the REMIC
      I
      Regular Interests for any Distribution Date, the aggregate amount of any
      Prepayment Interest Shortfalls (to the extent not covered by payments by the
      related Servicer pursuant to Section 3.22 of this Agreement or the Servicing
      Agreement or by the Master Servicer pursuant to Section 4.19 of this Agreement)
      and any Relief Act Interest Shortfalls incurred in respect of the Mortgage
      Loans
      for any Distribution Date shall be allocated among REMIC I Regular Interest
      I-LTAA, REMIC I Regular Interest I-LTA, REMIC I Regular Interest I-LTM1, REMIC
      I
      Regular Interest I-LTM2, REMIC I Regular Interest I-LTM3, REMIC I Regular
      Interest I-LTM4, REMIC I Regular Interest I-LTM5 and REMIC I Regular Interest
      I-LTZZ pro rata based on, and to the extent of, one month’s interest at the then
      applicable respective REMIC I Remittance Rate on the respective Uncertificated
      Balance of each such REMIC I Regular Interest.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      II

     

    CONVEYANCE
      OF MORTGAGE LOANS; 

    ORIGINAL
      ISSUANCE OF CERTIFICATES

     

    SECTION
      2.01  Conveyance
      of the Mortgage Loans.

     

    The
      Depositor, concurrently with the execution and delivery hereof, does hereby
      transfer, assign, set over and otherwise convey to the Trustee, on behalf of
      the
      Trust, without recourse, for the benefit of the Certificateholders, all the
      right, title and interest of the Depositor, including any security interest
      therein for the benefit of the Depositor, in and to the Mortgage Loans
      identified on the Mortgage Loan Schedule, the rights (but not the obligations)
      of the Depositor under the Mortgage Loan Purchase Agreement and the Assignment
      Agreement (including, without limitation the right to enforce the obligations
      of
      the other parties thereto thereunder) and the right to all other assets included
      or to be included in REMIC I. Such assignment includes all interest and
      principal received by the Depositor and the Servicers on or with respect to
      the
      Mortgage Loans (including all payments of principal and interest due on such
      Mortgage Loans on or before the Cut-off Date, but not paid by the related
      Mortgagors by such date). A copy of the Mortgage Loan Purchase Agreement is
      attached hereto.

     

    In
      connection with such transfer and assignment, the Depositor does hereby deliver
      to, and deposit with the related Custodian pursuant to the related Custodial
      Agreement the documents with respect to each Mortgage Loan as described under
      Section 2 of the Custodial Agreement (the “Mortgage Loan Documents”). In
      connection with such delivery and as further described in the Custodial
      Agreements, the Custodians will be required to review such Mortgage Loan
      Documents and deliver to the Trustee, the Depositor, the related Servicer and
      the Sponsor certifications (in the forms attached to the Custodial Agreements)
      with respect to such review with exceptions noted thereon. In addition, under
      the Custodial Agreements the Depositor will be required to cure certain defects
      with respect to the Mortgage Loan Documents for the related Mortgage Loans
      after
      the delivery thereof by the Depositor to the Custodians as more particularly
      set
      forth therein.

     

    Notwithstanding
      anything to the contrary contained herein, the parties hereto acknowledge that
      the functions of the Trustee with respect to the custody, acceptance, inspection
      and release of the Mortgage Files, including, but not limited to certain
      insurance policies and documents contemplated by Section 4.11 of this
      Agreement, and preparation and delivery of the certifications shall be performed
      by the Custodians pursuant to the terms and conditions of the Custodial
      Agreements.

     

    The
      Depositor shall deliver or cause the related originator to deliver to the
      related Servicer copies of all trailing documents required to be included in
      the
      related Mortgage File at the same time the originals or certified copies thereof
      are delivered to the Trustee or Custodians, such documents including the
      mortgagee policy of title insurance and any Mortgage Loan Documents upon return
      from the recording office. The Servicers shall not be responsible for any
      custodian fees or other costs incurred in obtaining such documents and the
      Depositor shall cause the Servicers to be reimbursed for any such costs the
      Servicers may incur in connection with performing their obligations under this
      Agreement or the Servicing Agreement, as applicable.

     

    The
      Mortgage Loans permitted by the terms of this Agreement to be included in the
      Trust are limited to (i) Mortgage Loans (which the Depositor acquired pursuant
      to the Mortgage Loan Purchase Agreement, which contains, among other
      representations and warranties, a representation and warranty of the Sponsor
      that no Mortgage Loan is a “High-Cost Home Loan” as defined in the New Jersey
      Home Ownership Act effective November 27, 2003 or as defined in the New Mexico
      Home Loan Protection Act effective January 1, 2004, as defined in the
      Massachusetts Predatory Home Loan Practices Act, effective November 7, 2004
      (Mass. Ann. Laws Ch. 183C) or as defined in the Indiana Home Loan Practices
      Act,
      effective January 1, 2005 (Ind. Code Ann. Sections 24-9-1 through 24-9-9) or
      a
“high risk home loan” under the Illinois High Risk Home Loan Act, effective as
      of January 1, 2004), and (ii) Qualified Substitute Mortgage Loans (which, by
      definition as set forth herein and referred to in the Mortgage Loan Purchase
      Agreement, are required to conform to, among other representations and
      warranties, the representation and warranty of the Sponsor that no Qualified
      Substitute Mortgage Loan is a “High-Cost Home Loan” as defined in the New Jersey
      Home Ownership Act effective November 27, 2003 or as defined in the New Mexico
      Home Loan Protection Act effective January 1, 2004, as defined in the
      Massachusetts Predatory Home Loan Practices Act, effective November 7, 2004
      (Mass. Ann. Laws Ch. 183C) or as defined in the Indiana Home Loan Practices
      Act,
      effective January 1, 2005 (Ind. Code Ann. Sections 24-9-1 through 24-9-9)).
      The
      Depositor and the Trustee on behalf of the Trust understand and agree that
      it is
      not intended that any Mortgage Loan be included in the Trust that is a
“High-Cost Home Loan” as defined in the New Jersey Home Ownership Act effective
      November 27, 2003, as defined in the New Mexico Home Loan Protection Act
      effective January 1, 2004, as defined in the Massachusetts Predatory Home Loan
      Practices Act, effective November 7, 2004 (Mass. Ann. Laws Ch. 183C) or as
      defined in the Indiana Home Loan Practices Act, effective January 1, 2005 (Ind.
      Code Ann. Sections 24-9-1 through 24-9-9) or a “high risk home loan” under the
      Illinois High Risk Home Loan Act, effective as of January 1, 2004.

     

    SECTION
      2.02  Acceptance
      of REMIC I by Trustee.

     

    The
      Trustee acknowledges receipt, subject to the provisions of Section 2.01
      hereof and Section 2 of the Custodial Agreements, of the Mortgage Loan
      Documents and all other assets included in the definition of “REMIC I” under
      clauses (i), (iii), (iv) and (v) (to the extent of amounts deposited into the
      Distribution Account) and declares that it holds (or the applicable Custodian
      on
      its behalf holds) and will hold such documents and the other documents delivered
      to it constituting a Mortgage Loan Document, and that it holds (or the
      applicable Custodian on its behalf holds) or will hold all such assets and
      such
      other assets included in the definition of “REMIC I” in trust for the exclusive
      use and benefit of all present and future Certificateholders.

     

    SECTION
      2.03  Repurchase
      or Substitution of Mortgage Loans.

     

    (a)  Upon
      discovery or receipt of notice (i) of any materially defective document in
      a
      Mortgage File or that a document is missing from a Mortgage File, other than
      a
      defective or missing document with respect to the Mortgage Loans listed on
      Schedule A to the Mortgage Loan Purchase Agreement, or (ii) of a breach by
      the
      Sponsor of any representation, warranty or covenant under the Mortgage Loan
      Purchase Agreement in respect of any Mortgage Loan that materially and adversely
      affects the value of such Mortgage Loan or the interest therein of the
      Certificateholders, which notice shall be provided in accordance with
      Section 9.02(a)(viii), the Trustee shall promptly notify the Sponsor and
      the related Servicer of such defect, missing document or breach and request
      that
      the Sponsor deliver such missing document, cure such defect or breach within
      sixty (60) days from the date the Sponsor was notified of such missing document,
      defect or breach, and if the Sponsor does not deliver such missing document
      or
      cure such defect or breach in all material respects during such period, the
      Trustee shall enforce the obligations of the Sponsor under the Mortgage Loan
      Purchase Agreement to repurchase such Mortgage Loan from REMIC I at the Purchase
      Price within ninety (90) days after the date on which the Sponsor was notified
      of such missing document, defect or breach, if and to the extent that the
      Sponsor is obligated to do so under the Mortgage Loan Purchase Agreement. The
      Purchase Price for the repurchased Mortgage Loan shall be remitted to the
      related Servicer for deposit in the related Collection Account or the Custodial
      Account, as applicable, and the Trustee, upon receipt of written certification
      from the related Servicer of such deposit, shall release or cause the applicable
      Custodian (upon receipt of a request for release in the form attached to the
      related Custodial Agreement) to release to the Sponsor the related Mortgage
      File
      and the Trustee shall execute and deliver such instruments of transfer or
      assignment, in each case without recourse, representation or warranty, as the
      Sponsor shall furnish to it and as shall be necessary to vest in the Sponsor
      any
      Mortgage Loan released pursuant hereto, and the Trustee shall not have any
      further responsibility with regard to such Mortgage File. In lieu of
      repurchasing any such Mortgage Loan as provided above, if so provided in the
      Mortgage Loan Purchase Agreement, the Sponsor may cause such Mortgage Loan
      to be
      removed from REMIC I (in which case it shall become a Deleted Mortgage Loan)
      and
      substitute one or more Qualified Substitute Mortgage Loans in the manner and
      subject to the limitations set forth in Section 2.03(b) of this Agreement.
      It is understood and agreed that the obligation of the Sponsor to cure or to
      repurchase (or to substitute for) any Mortgage Loan as to which a document
      is
      missing, a material defect in a constituent document exists or as to which
      such
      a breach has occurred and is continuing shall constitute the sole remedy
      respecting such omission, defect or breach available to the Trustee and the
      Certificateholders.

     

    In
      addition, promptly upon the earlier of discovery by a Servicer or receipt of
      notice by a Servicer of the breach of the representation or covenant of the
      Sponsor set forth in Section 5(xvii)
      of the
      Mortgage Loan Purchase Agreement which materially and adversely affects the
      interests of the Holders of the Class P Certificates in any Prepayment Charge,
      such Servicer shall promptly notify the Sponsor and the Trustee of such breach.
      The Trustee shall enforce the obligations of the Sponsor under the Mortgage
      Loan
      Purchase Agreement to remedy such breach to the extent and in the manner set
      forth in the Mortgage Loan Purchase Agreement.

     

    (b)  Any
      substitution of Qualified Substitute Mortgage Loans for Deleted Mortgage Loans
      made pursuant to Section 2.03(a) of this Agreement must be effected prior
      to the date which is two years after the Startup Day for REMIC I.

     

    As
      to any
      Deleted Mortgage Loan for which the Sponsor substitutes a Qualified Substitute
      Mortgage Loan or Loans, such substitution shall be effected by the Sponsor
      delivering to the Trustee or the applicable Custodian on behalf of the Trustee,
      for such Qualified Substitute Mortgage Loan or Loans, the Mortgage Note, the
      Mortgage, the Assignment to the Trustee, and such other documents and
      agreements, with all necessary endorsements thereon, as are required by
      Section 2 of the Custodial Agreements, as applicable, together with an
      Officers’ Certificate providing that each such Qualified Substitute Mortgage
      Loan satisfies the definition thereof and specifying the Substitution Shortfall
      Amount (as described below), if any, in connection with such substitution.
      The
      applicable Custodian on behalf of the Trustee shall acknowledge receipt of
      such
      Qualified Substitute Mortgage Loan or Loans and, within ten (10) Business Days
      thereafter, review such documents and deliver to the Depositor, the Trustee
      and
      the related Servicer, with respect to such Qualified Substitute Mortgage Loan
      or
      Loans, an initial certification pursuant to the related Custodial Agreement,
      with any applicable exceptions noted thereon. Within one year of the date of
      substitution, the applicable Custodian on behalf of the Trustee shall deliver
      to
      the Depositor, the Trustee and the related Servicer a final certification
      pursuant to the related Custodial Agreement with respect to such Qualified
      Substitute Mortgage Loan or Loans, with any applicable exceptions noted thereon.
      Monthly Payments due with respect to Qualified Substitute Mortgage Loans in
      the
      month of substitution are not part of REMIC I and will be retained by the
      Sponsor. For the month of substitution, distributions to Certificateholders
      will
      reflect the Monthly Payment due on such Deleted Mortgage Loan on or before
      the
      Due Date in the month of substitution, and the Sponsor shall thereafter be
      entitled to retain all amounts subsequently received in respect of such Deleted
      Mortgage Loan. The Depositor shall give or cause to be given written notice
      to
      the Certificateholders that such substitution has taken place, shall amend
      the
      Mortgage Loan Schedule to reflect the removal of such Deleted Mortgage Loan
      from
      the terms of this Agreement and the substitution of the Qualified Substitute
      Mortgage Loan or Loans and shall deliver a copy of such amended Mortgage Loan
      Schedule to the Trustee and the related Servicer. Upon such substitution, such
      Qualified Substitute Mortgage Loan or Loans shall constitute part of the Trust
      Fund and shall be subject in all respects to the terms of this Agreement and
      the
      Mortgage Loan Purchase Agreement, including all applicable representations
      and
      warranties thereof included herein or in the Mortgage Loan Purchase
      Agreement.

     

    For
      any
      month in which the Sponsor substitutes one or more Qualified Substitute Mortgage
      Loans for one or more Deleted Mortgage Loans, the related Servicer will
      determine the amount (the “Substitution Shortfall Amount”), if any, by which the
      aggregate Purchase Price of all such Deleted Mortgage Loans exceeds the
      aggregate of, as to each such Qualified Substitute Mortgage Loan, the Scheduled
      Principal Balance thereof as of the date of substitution, together with one
      month’s interest on such Scheduled Principal Balance at the applicable Net
      Mortgage Rate, plus all outstanding P&I Advances and Servicing Advances
      (including Nonrecoverable P&I Advances and Nonrecoverable Servicing
      Advances) related thereto. On the date of such substitution, the Sponsor will
      deliver or cause to be delivered to the related Servicer for deposit in the
      related Collection Account or the Custodial Account an amount equal to the
      Substitution Shortfall Amount, if any, and the Trustee or the applicable
      Custodian on behalf of the Trustee, upon receipt of the related Qualified
      Substitute Mortgage Loan or Loans, upon receipt of a request for release in
      the
      form attached to the related Custodial Agreement and certification by the
      related Servicer of such deposit, shall release to the Sponsor the related
      Mortgage File or Files and the Trustee shall execute and deliver such
      instruments of transfer or assignment, in each case without recourse,
      representation or warranty, as the Sponsor shall deliver to it and as shall
      be
      necessary to vest therein any Deleted Mortgage Loan released pursuant
      hereto.

     

    In
      addition, the Sponsor shall obtain at its own expense and deliver to the Trustee
      an Opinion of Counsel to the effect that such substitution will not cause (a)
      any federal tax to be imposed on any Trust REMIC, including without limitation,
      any federal tax imposed on “prohibited transactions” under
      Section 860F(a)(1) of the Code or on “contributions after the startup date”
under Section 860G(d)(1) of the Code, or (b) any Trust REMIC to fail to
      qualify as a REMIC at any time that any Certificate is outstanding.

     

    (c)  Upon
      discovery by the Depositor, the Sponsor, a Servicer or the Trustee that any
      Mortgage Loan does not constitute a “qualified mortgage” within the meaning of
      Section 860G(a)(3) of the Code, the party discovering such fact shall
      within two (2) Business Days give written notice thereof to the other parties.
      In connection therewith, the Sponsor shall repurchase or substitute one or
      more
      Qualified Substitute Mortgage Loans for the affected Mortgage Loan within ninety
      (90) days of the earlier of discovery or receipt of such notice with respect
      to
      such affected Mortgage Loan. Such repurchase or substitution shall be made
      by
      (i) the Sponsor if the affected Mortgage Loan’s status as a non-qualified
      mortgage is or results from a breach of any representation, warranty or covenant
      made by the Sponsor under the Mortgage Loan Purchase Agreement or (ii) the
      Depositor, if the affected Mortgage Loan’s status as a non-qualified mortgage
      does not result from a breach of a representation or warranty. Any such
      repurchase or substitution shall be made in the same manner as set forth in
      Section 2.03(a) of this Agreement. The Trustee shall reconvey to the
      Sponsor the Mortgage Loan to be released pursuant hereto in the same manner,
      and
      on the same terms and conditions, as it would a Mortgage Loan repurchased for
      breach of a representation or warranty.

     

    (d) With
      respect to a breach of the representations made pursuant to Section 5(xvii)
      of the Mortgage Loan Purchase Agreement that materially and adversely affects
      the value of such Mortgage Loan or the interest therein of the
      Certificateholders, the Sponsor shall be required to take the actions set forth
      in this Section 2.03 of this Agreement.

     

    (e) Within
      ninety (90) days of the earlier of discovery by Ocwen or Wells Fargo or receipt
      of notice by Ocwen or Wells Fargo of the breach of any representation, warranty
      or covenant of Ocwen or Wells Fargo, as applicable, set forth in
      Section 2.05 of this Agreement, which materially and adversely affects the
      interests of the Certificateholders in any Mortgage Loan or Prepayment Charge,
      Ocwen or Wells Fargo, as applicable, shall cure such breach in all material
      respects.

     

    SECTION
      2.04  Representations
      and Warranties of the Master Servicer.

     

    The
      Master Servicer hereby represents, warrants and covenants to Ocwen, Wells Fargo,
      the Depositor and the Trustee, for the benefit of each of the Trustee and the
      Certificateholders, that as of the Closing Date or as of such date specifically
      provided herein:

     

    (i)  The
      Master Servicer is a national banking association duly formed, validly existing
      and in good standing under the laws of the United States of America and is
      duly
      authorized and qualified to transact any and all business contemplated by this
      Agreement to be conducted by the Master Servicer;

     

    (ii)  The
      Master Servicer has the full power and authority to conduct its business as
      presently conducted by it and to execute, deliver and perform, and to enter
      into
      and consummate, all transactions contemplated by this Agreement. The Master
      Servicer has duly authorized the execution, delivery and performance of this
      Agreement, has duly executed and delivered this Agreement, and this Agreement,
      assuming due authorization, execution and delivery by the other parties hereto,
      constitutes a legal, valid and binding obligation of the Master Servicer,
      enforceable against it in accordance with its terms except as the enforceability
      thereof may be limited by bankruptcy, insolvency, reorganization or similar
      laws
      affecting the enforcement of creditors’ rights generally and by general
      principles of equity;

     

    (iii)  The
      execution and delivery of this Agreement by the Master Servicer, the
      consummation by the Master Servicer of any other of the transactions herein
      contemplated, and the fulfillment of or compliance with the terms hereof are
      in
      the ordinary course of business of the Master Servicer and will not (A) result
      in a breach of any term or provision of the charter and by-laws of the Master
      Servicer or (B) conflict with, result in a breach, violation or acceleration
      of,
      or result in a default under, the terms of any other material agreement or
      instrument to which the Master Servicer is a party or by which it may be bound,
      or any statute, order or regulation applicable to the Master Servicer of any
      court, regulatory body, administrative agency or governmental body having
      jurisdiction over the Master Servicer; and the Master Servicer is not a party
      to, bound by, or in breach or violation of any indenture or other agreement
      or
      instrument, or subject to or in violation of any statute, order or regulation
      of
      any court, regulatory body, administrative agency or governmental body having
      jurisdiction over it, which materially and adversely affects or, to the Master
      Servicer’s knowledge, would in the future materially and adversely affect, (x)
      the ability of the Master Servicer to perform its obligations under this
      Agreement or (y) the business, operations, financial condition, properties
      or
      assets of the Master Servicer taken as a whole;

     

    (iv)  The
      Master Servicer does not believe, nor does it have any reason or cause to
      believe, that it cannot perform each and every covenant made by it and contained
      in this Agreement;

     

    (v)  No
      litigation is pending against the Master Servicer that would materially and
      adversely affect the execution, delivery or enforceability of this Agreement
      or
      the ability of the Master Servicer to perform any of its other obligations
      hereunder in accordance with the terms hereof;

     

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

     

    (vii)  No
      consent, approval, authorization or order of any court or governmental agency
      or
      body is required for the execution, delivery and performance by the Master
      Servicer of, or compliance by the Master Servicer with, this Agreement or the
      consummation by it of the transactions contemplated by this Agreement, except
      for such consents, approvals, authorizations or orders, if any, that have been
      obtained prior to the Closing Date; and

     

    (viii)  There
      are
      no affiliations, relationships or transactions relating to the Master Servicer
      of a type that are described under Item 1119 of Regulation AB with DBNTC, the
      Depositor, the Sponsor, any Servicer (other than Wells Fargo), the Credit Risk
      Manager, the Trustee or Quick Loan Funding, Inc.

     

    It
      is
      understood and agreed that the representations, warranties and covenants set
      forth in this Section 2.04 shall survive the resignation or termination of
      the parties hereto and the termination of this Agreement and shall inure to
      the
      benefit of the Trustee, the Depositor and the Certificateholders.

     

    SECTION
      2.05  Representations,
      Warranties and Covenants of Ocwen and Wells Fargo.

     

    (a)  Ocwen
      hereby represents, warrants and covenants to the Master Servicer, Wells Fargo,
      the Securities Administrator, the Depositor and the Trustee, for the benefit
      of
      each of such Persons and the Certificateholders that as of the Closing Date
      or
      as of such date specifically provided herein:

     

    (i)  Ocwen
      is
      a limited liability company duly organized and validly existing under the laws
      of the jurisdiction of its formation, and is duly authorized and qualified
      to
      transact any and all business contemplated by this Agreement to be conducted
      by
      Ocwen in any state in which a Mortgaged Property related to an Ocwen Mortgage
      Loan is located or is otherwise not required under applicable law to effect
      such
      qualification and, in any event, is in compliance with the doing business laws
      of any such State, to the extent necessary to ensure its ability to enforce
      each
      Ocwen Mortgage Loan and to service the Ocwen Mortgage Loans in accordance with
      the terms of this Agreement;

     

    (ii)  Ocwen
      has
      the full power and authority to conduct its business as presently conducted
      by
      it and to execute, deliver and perform, and to enter into and consummate, all
      transactions contemplated by this Agreement. Ocwen has duly authorized the
      execution, delivery and performance of this Agreement, has duly executed and
      delivered this Agreement, and this Agreement, assuming due authorization,
      execution and delivery by the other parties hereto, constitutes a legal, valid
      and binding obligation of Ocwen, enforceable against it in accordance with
      its
      terms, except as the enforceability thereof may be limited by bankruptcy,
      insolvency, reorganization or similar laws affecting the enforcement of
      creditors’ rights generally and by general principles of equity;

     

    (iii)  The
      execution and delivery of this Agreement by Ocwen, the servicing of the Ocwen
      Mortgage Loans by Ocwen hereunder, the consummation by Ocwen of any other of
      the
      transactions herein contemplated, and the fulfillment of or compliance with
      the
      terms hereof are in the ordinary course of business of Ocwen and will not (A)
      result in a breach of any term or provision of the charter or by-laws of Ocwen
      or (B) conflict with, result in a breach, violation or acceleration of, or
      result in a default under, the terms of any other material agreement or
      instrument to which Ocwen is a party or by which it may be bound, or any
      statute, order or regulation applicable to Ocwen of any court, regulatory body,
      administrative agency or governmental body having jurisdiction over Ocwen;
      and
      Ocwen is not a party to, bound by, or in breach or violation of any indenture
      or
      other agreement or instrument, or subject to or in violation of any statute,
      order or regulation of any court, regulatory body, administrative agency or
      governmental body having jurisdiction over it, which materially and adversely
      affects or, to Ocwen’s knowledge, would in the future materially and adversely
      affect, (x) the ability of Ocwen to perform its obligations under this
      Agreement, (y) the business, operations, financial condition, properties or
      assets of Ocwen taken as a whole or (z) the legality, validity or enforceability
      of this Agreement;

     

    (iv)  Ocwen
      does not believe, nor does it have any reason or cause to believe, that it
      cannot perform each and every covenant made by it and contained in this
      Agreement;

     

    (v)  No
      litigation is pending against Ocwen that would materially and adversely affect
      the execution, delivery or enforceability of this Agreement or the ability
      of
      Ocwen to service the Ocwen Mortgage Loans or to perform any of its other
      obligations hereunder in accordance with the terms hereof;

     

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

     

    (vii)  No
      consent, approval, authorization or order of any court or governmental agency
      or
      body is required for the execution, delivery and performance by Ocwen of, or
      compliance by Ocwen with, this Agreement or the consummation by it of the
      transactions contemplated by this Agreement, except for such consents,
      approvals, authorizations or orders, if any, that have been obtained prior
      to
      the Closing Date;

     

    (viii)  Ocwen
      has
      fully furnished and will continue to fully furnish, in accordance with the
      Fair
      Credit Reporting Act and its implementing regulations, accurate and complete
      information (e.g., favorable and unfavorable) on its borrower credit files
      to
      Equifax, Experian and Trans Union Credit Information Company or their successors
      on a monthly basis; and

     

    (ix)  Ocwen
      is
      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 Ocwen
      Mortgage Loans that are registered with MERS.

     

    (b)  Wells
      Fargo hereby represents, warrants and covenants to the Master Servicer, Ocwen,
      the Securities Administrator, the Depositor and the Trustee, for the benefit
      of
      each of such Persons and the Certificateholders that as of the Closing Date
      or
      as of such date specifically provided herein:

     

    (i)  Wells
      Fargo is a national banking association duly organized and validly existing
      under the laws of the United States of America and is duly authorized and
      qualified to transact any and all business contemplated by this Agreement to
      be
      conducted by Wells Fargo in any state in which a Mortgaged Property related
      to a
      Wells Fargo Mortgage Loan is located or is otherwise not required under
      applicable law to effect such qualification and, in any event, is in compliance
      with the doing business laws of any such State, to the extent necessary to
      ensure its ability to enforce each Wells Fargo Mortgage Loan and to service
      the
      Wells Fargo Mortgage Loans in accordance with the terms of this
      Agreement;

     

    (ii)  Wells
      Fargo has the full power and authority to conduct its business as presently
      conducted by it and to execute, deliver and perform, and to enter into and
      consummate, all transactions contemplated by this Agreement. Wells Fargo has
      duly authorized the execution, delivery and performance of this Agreement,
      has
      duly executed and delivered this Agreement, and this Agreement, assuming due
      authorization, execution and delivery by the other parties hereto, constitutes
      a
      legal, valid and binding obligation of Wells Fargo, enforceable against it
      in
      accordance with its terms, except as the enforceability thereof may be limited
      by bankruptcy, insolvency, reorganization or similar laws administered by the
      FDIC affecting the contract obligations of insured banks and affecting the
      enforcement of creditors’ rights generally and by general principles of
      equity;

     

    (iii)  The
      execution and delivery of this Agreement by Wells Fargo, the servicing of the
      Wells Fargo Mortgage Loans by Wells Fargo hereunder, the consummation by Wells
      Fargo of any other of the transactions herein contemplated, and the fulfillment
      of or compliance with the terms hereof are in the ordinary course of business
      of
      Wells Fargo and will not (A) result in a breach of any term or provision of
      the
      charter or by-laws of Wells Fargo or (B) conflict with, result in a breach,
      violation or acceleration of, or result in a default under, the terms of any
      other material agreement or instrument to which Wells Fargo is a party or by
      which it may be bound, or any statute, order or regulation applicable to Wells
      Fargo of any court, regulatory body, administrative agency or governmental
      body
      having jurisdiction over Wells Fargo; and Wells Fargo is not a party to, bound
      by, or in breach or violation of any indenture or other agreement or instrument,
      or subject to or in violation of any statute, order or regulation of any court,
      regulatory body, administrative agency or governmental body having jurisdiction
      over it, which materially and adversely affects or, to Wells Fargo’s knowledge,
      would in the future materially and adversely affect, (x) the ability of Wells
      Fargo to perform its obligations under this Agreement, (y) the business,
      operations, financial condition, properties or assets of Wells Fargo taken
      as a
      whole or (z) the legality, validity or enforceability of this
      Agreement;

     

    (iv)  Wells
      Fargo does not believe, nor does it have any reason or cause to believe, that
      it
      cannot perform each and every covenant made by it and contained in this
      Agreement;

     

    (v)  No
      litigation is pending against Wells Fargo that would materially and adversely
      affect the execution, delivery or enforceability of this Agreement or the
      ability of Wells Fargo to service the Wells Fargo Mortgage Loans or to perform
      any of its other obligations hereunder in accordance with the terms
      hereof;

     

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

     

    (vii)  No
      consent, approval, authorization or order of any court or governmental agency
      or
      body is required for the execution, delivery and performance by Wells Fargo
      of,
      or compliance by Wells Fargo with, this Agreement or the consummation by it
      of
      the transactions contemplated by this Agreement, except for such consents,
      approvals, authorizations or orders, if any, that have been obtained prior
      to
      the Closing Date;

     

    (viii)  Wells
      Fargo has fully furnished and will continue to fully furnish, in accordance
      with
      the Fair Credit Reporting Act and its implementing regulations, accurate and
      complete information (e.g., favorable and unfavorable) on its borrower credit
      files to Equifax, Experian and Trans Union Credit Information Company or their
      successors on a monthly basis; and

     

    (ix)  Wells
      Fargo is 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 Wells Fargo Mortgage Loans that are registered with MERS.

     

    (c)  It
      is
      understood and agreed that the representations, warranties and covenants set
      forth in this Section 2.05 shall survive the resignation or termination of
      the parties hereto, the termination of this Agreement and the delivery of the
      Mortgage Files to the related Custodian and shall inure to the benefit of the
      Trustee, the Master Servicer, the Securities Administrator, the Depositor and
      the Certificateholders. Upon discovery by any such Person or Ocwen or Wells
      Fargo, as applicable, of a breach of any of the foregoing representations,
      warranties and covenants which materially and adversely affects the value of
      any
      Mortgage Loan, Prepayment Charge or the interests therein of the
      Certificateholders, the party discovering such breach shall give prompt written
      notice (but in no event later than two (2) Business Days following such
      discovery) to the Trustee. Subject to Section 8.01 of this Agreement,
      unless such breach shall not be susceptible of cure within ninety (90) days,
      the
      obligation of Ocwen or Wells Fargo, as applicable, set forth in
      Section 2.03(e) of this Agreement to cure breaches shall constitute the
      sole remedy against Ocwen or Wells Fargo, as applicable, available to the
      Certificateholders, the Depositor or the Trustee on behalf of the
      Certificateholders respecting a breach of the representations, warranties and
      covenants contained in this Section 2.05.

     

    SECTION
      2.06  Issuance
      of the REMIC I Regular Interests and the Class R-I Interest.

     

    The
      Trustee acknowledges the assignment to it of the Mortgage Loans and the delivery
      to the applicable Custodian on its behalf of the Mortgage Loan Documents,
      subject to the provisions of Section 2.01 and Section 2.02 hereof and
      Section 2 of the related Custodial Agreement, together with the assignment
      to it of all other assets included in REMIC I, the receipt of which is hereby
      acknowledged. The interests evidenced by the Class R-I Interest, together with
      the REMIC I Regular Interests, constitute the entire beneficial ownership
      interest in REMIC I. The rights of the Holders of the Class R-I Interest and
      REMIC I (as holder of the REMIC I Regular Interests) to receive distributions
      from the proceeds of REMIC I in respect of the Class R-I Interest and the REMIC
      I Regular Interests, respectively, and all ownership interests evidenced or
      constituted by the Class R-I Interest and the REMIC I Regular Interests, shall
      be as set forth in this Agreement.

     

    SECTION
      2.07  Conveyance
      of the REMIC I Regular Interests; Acceptance of REMIC I by the
      Trustee.

     

    The
      Depositor, concurrently with the execution and delivery hereof, does hereby
      transfer, assign, set over and otherwise convey to the Trustee, without recourse
      all the right, title and interest of the Depositor in and to the REMIC I Regular
      Interests for the benefit of the Class R-II Interest and REMIC II (as holder
      of
      the REMIC I Regular Interests). The Trustee acknowledges receipt of the REMIC
      I
      Regular Interests and declares that it holds and will hold the same in trust
      for
      the exclusive use and benefit of all present and future Holders of the Class
      R-II Interest and REMIC II (as holder of the REMIC I Regular Interests). The
      rights of the Holder of the Class R-II Interest and REMIC II (as holder of
      the
      REMIC I Regular Interests) to receive distributions from the proceeds of REMIC
      II in respect of the Class R-II Interest and the Regular Certificates,
      respectively, and all ownership interests evidenced or constituted by the Class
      R-II Interest and the Regular Certificates, shall be as set forth in this
      Agreement. The Class R-II Interest and the Regular Certificates shall constitute
      the entire beneficial ownership interest in REMIC II.

     

    SECTION
      2.08  Issuance
      of the Residual Certificates.

     

    The
      Trustee acknowledges the assignment to it of the REMIC I Regular Interests
      and,
      concurrently therewith and in exchange therefor, pursuant to the written request
      of the Depositor executed by an officer of the Depositor, the Securities
      Administrator has executed and authenticated and the Trustee has delivered
      to or
      upon the order of the Depositor, the Class R Certificates in authorized
      denominations. The Class R Certificates evidence ownership in the Class R-I
      Interest and the Class R-II Interest.

     

    SECTION
      2.09  Establishment
      of the Trust.

     

    The
      Depositor does hereby establish, pursuant to the further provisions of this
      Agreement and the laws of the State of New York, an express trust to be known,
      for convenience, as “ACE Securities Corp., Home Equity Loan Trust, Series
      2006-SD2” and does hereby appoint HSBC Bank USA, National Association as Trustee
      in accordance with the provisions of this Agreement.

     

    SECTION
      2.10  Purpose
      and Powers of the Trust.

     

    The
      purpose of the common law trust, as created hereunder, is to engage in the
      following activities:

     

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

     

    (b)  to
      issue
      the Certificates sold to the Depositor in exchange for the Mortgage
      Loans;

     

    (c)  to
      make
      payments on the Certificates;

     

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

     

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

     

    The
      trust
      is hereby authorized to engage in the foregoing activities. The Trustee shall
      not cause the trust to engage in any activity other than in connection with
      the
      foregoing or other than as required or authorized by the terms of this Agreement
      (or those ancillary thereto) while any Certificate is outstanding, and this
      Section 2.10 may not be amended, without the consent of the Certificateholders
      evidencing 51% or more of the aggregate voting rights of the
      Certificates.

     

    SECTION
      2.11  Representations
      and Warranties of the Trustee. 

     

    The
      Trustee hereby represents and warrants to the Sponsor and the Depositor, for
      the
      benefit of each of the Certificateholders, that as of the Closing Date:

     

    (a)  There
      are
      no affiliations relating to the Trustee of a type that are described under
      Item
      1119(a) of Regulation AB; and 

     

    (b)  There
      are
      no legal proceedings pending or contemplated, including legal proceedings
      pending or contemplated by governmental authorities, against the Trustee that
      could be material to the Certificateholders.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    ARTICLE
      III 

     

    ADMINISTRATION
      AND SERVICING OF THE OCWEN MORTGAGE LOANS 

    AND
      WELLS
      FARGO MORTGAGE LOANS; ACCOUNTS

     

    SECTION
      3.01  Ocwen
      and Wells Fargo to Act as a Servicer.

     

    The
      obligations of each of Ocwen and Wells Fargo hereunder to service and administer
      the Mortgage Loans shall be limited to the Ocwen Mortgage Loans and the Wells
      Fargo Mortgage Loans, respectively, and with respect to the duties and
      obligations of each Servicer references herein to the related Mortgage Loans
      shall be limited to the Ocwen Mortgage Loans (and the related proceeds thereof
      and related REO Properties) in the case of Ocwen, and the Wells Fargo Mortgage
      Loans (and the related proceeds thereof and related REO Properties) in the
      case
      of Wells Fargo, and in no event shall either Servicer have any responsibility
      or
      liability with respect to any Mortgage Loans serviced by the other Servicer
      hereunder. In addition, from and after the Closing Date, the SPS Mortgage Loans
      will be serviced and administered by SPS pursuant to the Servicing Agreement,
      and neither Ocwen nor Wells Fargo will have any responsibility to service or
      administer such Mortgage Loans or have any other obligation with respect to
      such
      Mortgage Loans (including reporting or remitting funds to the Master Servicer).
      Except as otherwise expressly stated herein, references in this Article III
      to
“Servicer” shall refer to Ocwen or Wells Fargo, as the case may be, and any
      successor thereto as a Servicer. 

     

    From
      and
      after the Closing Date with respect to the Ocwen Mortgage Loans and the Wells
      Fargo Mortgage Loans, Ocwen and Wells Fargo shall service and administer the
      related Mortgage Loans on behalf of the Trust Fund and in the best interests
      of
      and for the benefit of the Certificateholders (as determined by the related
      Servicer in its reasonable judgment) in accordance with the terms of this
      Agreement and the respective Mortgage Loans and all applicable law and
      regulations and, to the extent consistent with such terms, in the same manner
      in
      which it services and administers similar mortgage loans for its own portfolio,
      giving due consideration to customary and usual standards of practice of prudent
      mortgage lenders and loan servicers administering similar mortgage loans but
      without regard to:

     

    (i)  any
      relationship that the related Servicer or any Affiliate of the related Servicer
      may have with the related Mortgagor;

     

    (ii)  the
      ownership of any Certificate by the related Servicer or any Affiliate of the
      related Servicer;

     

    (iii)  the
      related Servicer’s obligation to make P&I Advances or Servicing Advances;
      or

     

    (iv)  the
      related Servicer’s right to receive compensation for its services
      hereunder.

     

    To
      the
      extent consistent with the foregoing, the related Servicer shall also seek
      to
      maximize the timely and complete recovery of principal and interest on the
      Mortgage Notes with respect to the related Mortgage Loans and may waive (or
      permit a Sub-Servicer to waive) a Prepayment Charge with respect to Principal
      Prepayments only under the following circumstances: (i) such waiver is standard
      and customary in servicing similar Mortgage Loans and such waiver is related
      to
      a default or reasonably foreseeable default and would, in the reasonable
      judgment of the related Servicer, maximize recovery of total proceeds taking
      into account the value of such Prepayment Charge and the related Mortgage Loan
      and, if such waiver is made in connection with a refinancing of the related
      Mortgage Loan, such refinancing is related to a default or a reasonably
      foreseeable default, (ii) such Prepayment Charge is unenforceable in accordance
      with applicable law or the collection of such related Prepayment Charge would
      otherwise violate applicable law or (iii) the collection of such Prepayment
      Charge would be considered “predatory” pursuant to written guidance published or
      issued by any applicable federal, state or local regulatory authority acting
      in
      its official capacity and having jurisdiction over such matters. Notwithstanding
      any provision in this Agreement to the contrary, in the event the Prepayment
      Charge payable under the terms of the Mortgage Note is less than the amount
      of
      the Prepayment Charge set forth in the Prepayment Charge Schedule or other
      information provided to the related Servicer, the related Servicer shall not
      have any liability or obligation with respect to such difference (including
      any
      obligation to recalculate any prepayment charges), and in addition shall not
      have any liability or obligation to pay the amount of any uncollected Prepayment
      Charge if the failure to collect such amount is the direct result of inaccurate
      or incomplete information on the Prepayment Charge Schedule.

     

    Notwithstanding
      anything to the contrary contained in this Agreement, if Ocwen or Wells Fargo
      waives a Prepayment Charge in breach of the foregoing paragraph, Ocwen or Wells
      Fargo, as applicable will pay the amount of such waived Prepayment Charge,
      from
      its own funds without any right of reimbursement, for the benefit of the Holders
      of the Class P Certificates, by depositing such amount into the related
      Collection Account within ninety (90) days of the earlier of discovery by Ocwen
      or Wells Fargo, as applicable, or receipt of notice by Ocwen or Wells Fargo,
      as
      applicable, of such breach. Furthermore, notwithstanding any other provisions
      of
      this Agreement, any payments made by Ocwen or Wells Fargo, as applicable, in
      respect of any waived Prepayment Charges pursuant to this paragraph shall be
      deemed to be paid outside of the Trust Fund.

     

    In
      the
      event Ocwen or Wells Fargo waives a Prepayment Charge in connection with clauses
      (ii) or (iii) of the third paragraph of this section, Ocwen or Wells Fargo,
      as
      applicable, shall provide a written explanation of such Servicer’s determination
      to the Master Servicer, and the Master Servicer shall provide a copy of such
      writing to the Sponsor and the Depositor. 

     

    Subject
      only to the above-described servicing standards (the “Accepted Servicing
      Practices”) and the terms of this Agreement and of the respective Mortgage
      Loans, the related Servicer shall have full power and authority, to do or cause
      to be done any and all things in connection with such servicing and
      administration which it may deem necessary or desirable with the goal of
      maximizing proceeds of the Mortgage Loan. Without limiting the generality of
      the
      foregoing, the related Servicer in its own name is hereby authorized and
      empowered by the Trustee when the related Servicer believes it appropriate
      in
      its best judgment, to execute and deliver, on behalf of the Trust Fund, the
      Certificateholders and the Trustee or any of them, and upon written notice
      to
      the Trustee, any and all instruments of satisfaction or cancellation, or of
      partial or full release or discharge or subordination, and all other comparable
      instruments, with respect to the Mortgage Loans and the Mortgaged Properties
      and
      to institute foreclosure proceedings or obtain a deed-in-lieu of foreclosure
      so
      as to convert the ownership of such properties, and to hold or cause to be
      held
      title to such properties, on behalf of the Trustee, for the benefit of the
      Trust
      Fund and the Certificateholders. The related Servicer shall service and
      administer the Mortgage Loans in accordance with applicable state and federal
      law and shall provide to the Mortgagors any reports required to be provided
      to
      them thereby. The related Servicer shall also comply in the performance of
      this
      Agreement with all reasonable rules and requirements of each insurer under
      any
      standard hazard insurance policy. Subject to Section 3.14 of this
      Agreement, the Trustee shall execute, at the written request of a Servicer,
      and
      furnish to the related Servicer a power of attorney in the form of Exhibit
      D
      hereto and other documents necessary or appropriate to enable the related
      Servicer to carry out its servicing and administrative duties hereunder or
      under
      the Servicing Agreement, as applicable, and furnished to the Trustee by the
      related Servicer, and the Trustee shall not be liable for the actions of the
      related Servicer under such powers of attorney and shall be indemnified by
      the
      related Servicer for any cost, liability or expense incurred by the Trustee
      in
      connection with the related Servicer’s use or misuse of any such power of
      attorney.

     

    Each
      Servicer further is hereby authorized and empowered in its own name or in the
      name of the Sub-Servicer, when such Servicer or the Sub-Servicer, as the case
      may be, believes it is appropriate in its best judgment to register any Mortgage
      Loan on the MERS® System, or cause the removal from the registration of any
      Mortgage Loan on the MERS® 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, solely as nominee for the
      Trustee and its successors and assigns. Any reasonable expenses incurred in
      connection with the actions described in the preceding sentence or as a result
      of MERS discontinuing or becoming unable to continue operations in connection
      with the MERS® System, shall be reimbursable by the Trust Fund to such
      Servicer.

     

    In
      accordance with Accepted Servicing Practices, the related Servicer shall make
      or
      cause to be made Servicing Advances as necessary for the purpose of effecting
      the payment of taxes and assessments on the Mortgaged Properties, which
      Servicing Advances shall be reimbursable in the first instance from related
      collections from the related Mortgagors pursuant to Section 3.07 of this
      Agreement, and further as provided in Section 3.09 of this Agreement;
      provided, however, the related Servicer shall only make such Servicing Advance
      if the related Mortgagor has not made such payment and if the failure to make
      such Servicing Advance would result in the loss of the related Mortgaged
      Property due to a tax sale or foreclosure as result of a tax lien; provided,
      however, that each Servicer shall be required to make such Servicing Advances
      only to the extent that such Servicing Advances, in the good faith judgment
      of
      such Servicer, will be recoverable by such Servicer out of Insurance Proceeds,
      Liquidation Proceeds, or otherwise out of the proceeds of the related Mortgage
      Loan. Any cost incurred by the related Servicer in effecting the payment of
      taxes and assessments on a Mortgaged Property shall not, for the purpose of
      calculating the Scheduled Principal Balance of such Mortgage Loan or
      distributions to Certificateholders, be added to the unpaid principal balance
      of
      the related Mortgage Loan, notwithstanding that the terms of such Mortgage
      Loan
      so permit.

     

    The
      parties to this Agreement acknowledge that Servicing Advances shall be
      reimbursable pursuant to Section 3.09 of this Agreement, and agree that no
      Servicing Advance shall be rejected or disallowed by any party unless it has
      been shown that such Servicing Advance was not made in accordance with the
      terms
      of this Agreement. Notwithstanding the foregoing, the parties hereto understand
      and agree that, with respect to any Mortgage Loan (1) the Master Servicer shall
      not approve the reimbursement of any Servicing Advance made with respect to
      such
      Mortgage Loan prior to the Cut-off Date (each, a “Pre-Cut-off Date Advance”)
      unless and until it has received a Servicing Advance Schedule listing the amount
      of Pre-Cut-off Date Advances made in respect of such Mortgage Loan from (a)
      the
      related Servicer with respect to any Mortgage Loans that were transferred to
      such Servicer prior to the Cut-off Date and/or (b) the Depositor with respect
      to
      any Mortgage Loans that were transferred to the related Servicer after the
      Cut-off Date, as applicable, (2) the aggregate Pre-Cut-off Date Advances
      reimbursable hereunder with respect to such Mortgage Loan shall not exceed
      the
      amount of Pre-Cut-off Date Advances for such Mortgage Loan shown on the
      Servicing Advance Schedule delivered to the Master Servicer, (3) the Depositor
      shall be deemed to have agreed with and approved the Pre-Cut-off Date Advances
      shown on any Servicing Advance Schedule furnished to the Master Servicer and
      (4)
      the Master Servicer will have no liability to the Depositor, any Servicer or
      any
      other Person, including any Certificateholder, for approving reimbursement
      of
      related Pre-Cut-off Date Advances so long as the aggregate amount of such
      advances reimbursed hereunder does not exceed of the amount of Pre-Cut-off
      Date
      Advances for such Mortgage Loan shown on the Servicing Advance
      Schedule.

     

    Notwithstanding
      anything in this Agreement to the contrary, the related Servicer may not make
      any future advances with respect to a Mortgage Loan and the related Servicer
      shall not permit any modification with respect to any Mortgage Loan serviced
      by
      such Servicer that would change the Mortgage Rate, reduce or increase the
      principal balance (except for reductions resulting from actual payments of
      principal) or change the final maturity date on such related Mortgage Loan
      (unless, as provided in Section 3.06 of this Agreement, the related
      Mortgagor is in default with respect to the related Mortgage Loan or such
      default is, in the judgment of the related Servicer, reasonably foreseeable)
      or
      any modification, waiver or amendment of any term of any Mortgage Loan that
      would both (A) effect an exchange or reissuance of such Mortgage Loan under
      Section 1001 of the Code (or final, temporary or proposed Treasury
      regulations promulgated thereunder) and (B) cause any Trust REMIC created
      hereunder to fail to qualify as a REMIC under the Code or the imposition of
      any
      tax on “prohibited transactions” or “contributions after the startup date” under
      the REMIC Provisions.

     

    In
      the
      event that the Mortgage Loan Documents relating to any Mortgage Loan contain
      provisions requiring the related Mortgagor to arbitrate disputes (at the option
      of the Trustee, on behalf of the Trust), the Trustee hereby authorizes the
      related Servicer to waive the Trustee’s right or option to arbitrate disputes
      and to send written notice of such waiver to the Mortgagor, although the
      Mortgagor may still require arbitration at its option.

     

    Ocwen
      and
      Wells Fargo will fully furnish, in accordance with the Fair Credit Reporting
      Act
      and its implementing regulations, accurate and complete information (e.g.,
      favorable and unfavorable) on its borrower credit files to Equifax, Experian
      and
      Trans Union Credit Information Company or their successors on a monthly
      basis.

     

    SECTION
      3.02  Sub-Servicing
      Agreement Between Each Servicer and Sub-Servicers.

     

    (a)  Each
      Servicer may arrange for the subservicing of any Mortgage Loan by a Sub-Servicer
      pursuant to a Sub-Servicing Agreement; provided that such sub-servicing
      arrangement and the terms of the related Sub-Servicing Agreement must provide
      for the servicing of such Mortgage Loans in a manner consistent with the
      servicing arrangements contemplated hereunder and the related Servicer shall
      cause any Sub-Servicer to comply with the provisions of this Agreement
      (including, without limitation, to provide the information required to be
      delivered under Sections 3.17, 3.18 and 3.19 hereof), to the same extent as
      if
      such Sub-Servicer were the Servicer. The related Servicer shall be responsible
      for obtaining from each Sub-Servicer and delivering to the Master Servicer
      any
      annual statement of compliance, assessment of compliance, attestation report
      and
      Sarbanes-Oxley related certification as and when required to be delivered.
      Each
      Sub-Servicer shall be (i) authorized to transact business in the state or states
      where the related Mortgaged Properties it is to service are situated, if and
      to
      the extent required by applicable law to enable the Sub-Servicer to perform
      its
      obligations hereunder and under the Sub-Servicing Agreement and (ii) a Freddie
      Mac or Fannie Mae approved mortgage servicer. Notwithstanding the provisions
      of
      any Sub-Servicing Agreement, any of the provisions of this Agreement relating
      to
      agreements or arrangements between the related Servicer or a Sub-Servicer or
      reference to actions taken through the related Servicer or otherwise, the
      related Servicer shall remain obligated and liable to the Depositor, the Trustee
      and the Certificateholders for the servicing and administration of the Mortgage
      Loans in accordance with the provisions of this Agreement without diminution
      of
      such obligation or liability by virtue of such Sub-Servicing Agreement or
      arrangements or by virtue of indemnification from the Sub-Servicer and to the
      same extent and under the same terms and conditions as if the related Servicer
      alone were servicing and administering the Mortgage Loans. Every Sub-Servicing
      Agreement entered into by the related Servicer shall contain a provision giving
      the successor Servicer the option to terminate such agreement in the event
      a
      successor Servicer is appointed. All actions of each Sub-Servicer performed
      pursuant to the related Sub-Servicing Agreement shall be performed as an agent
      of the related Servicer with the same force and effect as if performed directly
      by the related Servicer.

     

    (b)  Notwithstanding
      the foregoing, each Servicer shall be entitled to outsource one or more separate
      servicing functions to a Subcontractor that does not meet the eligibility
      requirements for a Sub-Servicer, 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 Subcontractor. The
      related Servicer shall promptly, upon request, provide to the Master Servicer,
      the Trustee and the Depositor a written description (in form and substance
      reasonably satisfactory to the Master Servicer, the Trustee and the Depositor)
      of the role and function of each Subcontractor utilized by the related Servicer,
      specifying (i) the identity of each such Subcontractor “participating in the
      servicing function” within the meaning of Item 1122 of Regulation AB, and (ii)
      which elements of the Servicing Criteria will be addressed in assessments of
      compliance provided by each Subcontractor identified pursuant to clause (i)
      of
      this subsection; provided, however, that the Servicer shall not be required
      to
      provide the information in clauses (i) or (ii) of this subsection until such
      time that the applicable assessment of compliance is due pursuant to Section
      3.18 of this Agreement. The use by a Servicer of any such Subcontractor 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
      Subcontractor as fully as if such acts and omissions were those of such
      Servicer, and such Servicer shall pay all fees and expenses of the Subcontractor
      from such Servicer’s own funds.

     

    (c)  As
      a
      condition to the utilization of any Subcontractor determined to be
“participating in the servicing function” within the meaning of Item 1122 of
      Regulation AB, the related Servicer shall cause any such Subcontractor used
      by
      such Servicer for the benefit of the Master Servicer, the Trustee and the
      Depositor to comply with the provisions of Sections 3.18 and 3.19 of this
      Agreement to the same extent as if such Subcontractor were the related Servicer.
      The related Servicer shall be responsible for obtaining from each such
      Subcontractor and delivering to the Master Servicer, the Trustee and any
      Depositor any assessment of compliance, attestation report and Sarbanes-Oxley
      related certification required to be delivered by such Subcontractor under
      Sections 3.18 and 3.19, in each case as and when required to be
      delivered.

     

    (d)  For
      purposes of this Agreement, the related Servicer shall be deemed to have
      received any collections, recoveries or payments with respect to the Mortgage
      Loans that are received by a Sub-Servicer regardless of whether such payments
      are remitted by the Sub-Servicer to such Servicer. 

     

    SECTION
      3.03  Successor
      Sub-Servicers.

     

    Any
      Sub-Servicing Agreement shall provide that the related Servicer shall be
      entitled to terminate any Sub-Servicing Agreement and to either itself directly
      service the related Mortgage Loans or enter into a Sub-Servicing Agreement
      with
      a successor Sub-Servicer which qualifies under Section 3.02 of this Agreement.
      Any Sub-Servicing Agreement shall include the provision that such agreement
      may
      be immediately terminated by any successor to the related Servicer without
      fee
      or, in the event a termination fee exists, such fee shall be payable by the
      related Servicer from its own funds without reimbursement therefor, in
      accordance with the terms of this Agreement, in the event that the related
      Servicer (or any successor to the related Servicer) shall, for any reason,
      no
      longer be the Servicer of the related Mortgage Loans (including termination
      due
      to a Servicer Event of Default). Each Servicer shall be entitled to enter into
      an agreement with its Sub-Servicer and Subcontractor for indemnification of
      such
      Servicer or Subcontractor, as applicable, by such Sub-Servicer and nothing
      contained in this Agreement shall be deemed to limit or modify such
      indemnification.

     

    SECTION
      3.04  No
      Contractual Relationship Between Sub-Servicer, Subcontractor, Trustee or the
      Certificateholders.

     

    Any
      Sub-Servicing Agreement and any other transactions or services relating to
      the
      Mortgage Loans involving a Sub-Servicer or a Subcontractor, as applicable,
      shall
      be deemed to be between the Sub-Servicer or Subcontractor, as applicable, and
      the related Servicer alone, and the Master Servicer, the Trustee and the
      Certificateholders shall not be deemed parties thereto and shall have no claims,
      rights, obligations, duties or liabilities with respect to any Sub-Servicer
      or
      Subcontractor except as set forth in Section 3.05 of this
      Agreement.

     

    SECTION
      3.05  Assumption
      or Termination of Sub-Servicing Agreement by Successor
      Servicer.

     

    In
      connection with the assumption of the responsibilities, duties and liabilities
      and of the authority, power and rights of the related Servicer hereunder by
      a
      successor Servicer (which may be the Trustee or the Master Servicer) pursuant
      to
      Section 8.02 of this Agreement, it is understood and agreed that the
      related Servicer’s rights and obligations under any Sub-Servicing Agreement then
      in force between the related Servicer and a Sub-Servicer shall be assumed
      simultaneously by such successor Servicer without act or deed on the part of
      such successor Servicer; provided, however, that any successor Servicer may
      terminate the Sub-Servicer.

     

    The
      related Servicer shall, upon the reasonable request of the Master Servicer,
      but
      at its own expense, deliver to the assuming party documents and records relating
      to each Sub-Servicing Agreement and an accounting of amounts collected and
      held
      by it and otherwise use its best efforts to effect the orderly and efficient
      transfer of the Sub-Servicing Agreement to the assuming party.

     

    The
      Servicing Fee payable to any such successor Servicer shall be payable from
      payments received on the Mortgage Loans in the amount and in the manner set
      forth in this Agreement.

     

    SECTION
      3.06  Collection
      of Certain Mortgage Loan Payments.

     

    Each
      Servicer shall make reasonable efforts to collect all payments called for under
      the terms and provisions of the related Mortgage Loans, and shall, to the extent
      such procedures shall be consistent with this Agreement and Accepted Servicing
      Practices, follow such collection procedures as it would follow with respect
      to
      mortgage loans comparable to the Mortgage Loans and held for its own account.
      Consistent with the foregoing, each Servicer may in its discretion (i) waive
      any
      late payment charge or, if applicable, penalty interest or (ii) extend the
      due
      dates for the Monthly Payments due on a Mortgage Note for a period of not
      greater than one-hundred and eighty (180) days; provided that any extension
      pursuant to this clause shall not affect the amortization schedule of any
      Mortgage Loan for purposes of any computation hereunder. Notwithstanding the
      foregoing, in the event that any Mortgage Loan is in default or, in the judgment
      of the related Servicer, such default is reasonably foreseeable, the related
      Servicer, consistent with Accepted Servicing Practices may waive, modify or
      vary
      any term of such Mortgage Loan (including, but not limited to, modifications
      that change the Mortgage Rate, forgive the payment of principal or interest
      or
      extend the final maturity date of such Mortgage Loan), accept payment from
      the
      related Mortgagor of an amount less than the Scheduled Principal Balance in
      final satisfaction of such Mortgage Loan, or consent to the postponement of
      strict compliance with any such term or otherwise grant indulgence to any
      Mortgagor if in the related 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). No Servicer shall 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.

     

    SECTION
      3.07  Collection
      of Taxes, Assessments and Similar Items; Servicing Accounts.

     

    To
      the
      extent the terms of a Mortgage provide for Escrow Payments, the related Servicer
      shall establish and maintain one or more accounts (the “Servicing Accounts”),
      into which all collections from the related Mortgagors (or related advances
      from
      Sub-Servicers) for the payment of taxes, assessments, fire, flood, and hazard
      insurance premiums, and comparable items for the account of the Mortgagors
      (“Escrow Payments”) shall be deposited and retained. Servicing Accounts shall be
      Eligible Accounts. The related Servicer shall deposit in the clearing account
      in
      which it customarily deposits payments and collections on mortgage loans in
      connection with its mortgage loan servicing activities on a daily basis, and
      in
      no event more than one Business Day after the related Servicer’s receipt
      thereof, all Escrow Payments collected on account of the related Mortgage Loans
      and shall thereafter deposit such Escrow Payments in the Servicing Accounts,
      in
      no event later than the second Business Day after the deposit of good funds
      into
      the clearing account, and retain therein, all Escrow Payments collected on
      account of the Mortgage Loans, for the purpose of effecting the timely payment
      of any such items as required under the terms of this Agreement. Withdrawals
      of
      amounts from a Servicing Account may be made by the related Servicer only to
      (i)
      effect timely payment of taxes, assessments, fire, flood, and hazard insurance
      premiums, and comparable items; (ii) reimburse itself out of related collections
      for any Servicing Advances made prior to the Cut-off Date by the Sponsor or
      the
      related Servicer to the extent not previously reimbursed or following the
      Cut-off Date by the related Servicer pursuant to Section 3.01 of this
      Agreement (with respect to taxes and assessments) and Section 3.11 of this
      Agreement (with respect to fire, flood and hazard insurance); (iii) refund
      to
      Mortgagors any sums as may be determined to be overages; (iv) for application
      to
      restore or repair the related Mortgaged Property in accordance with Section
      3.11; (v) pay interest, if required and as described below, to Mortgagors on
      balances in the Servicing Account; or, only to the extent not required to be
      paid to the related Mortgagors, to pay itself interest on balances in the
      Servicing Account; or (vi) clear and terminate the Servicing Account at the
      termination of the related Servicer’s obligations and responsibilities in
      respect of the related Mortgage Loans under this Agreement in accordance with
      Article X. As part of its servicing duties, the related Servicer shall pay
      to
      the Mortgagors interest on funds in Servicing Accounts, to the extent required
      by law and, to the extent that interest earned on funds in the Servicing
      Accounts is insufficient, to pay such interest from its or their own funds,
      without any reimbursement therefor. Notwithstanding the foregoing, the Servicers
      shall not be obligated to collect Escrow Payments if the related Mortgage Loan
      does not require such payments, but the related Servicer shall nevertheless
      be
      obligated to make Servicing Advances as provided in Section 3.01 and
      Section 3.11 of this Agreement. In the event a Servicer shall deposit in
      the Servicing Accounts any amount not required to be deposited therein, it
      may
      at any time withdraw such amount from the related Servicing Accounts, any
      provision to the contrary notwithstanding.

     

    To
      the
      extent that a Mortgage does not provide for Escrow Payments, the related
      Servicer (i) shall determine whether any such payments are made by the Mortgagor
      in a manner and at a time that is necessary to avoid the loss of the Mortgaged
      Property due to a tax sale or the foreclosure as a result of a tax lien and
      (ii)
      shall ensure that all insurance required to be maintained on the Mortgaged
      Property pursuant to this Agreement is maintained. If any such payment has
      not
      been made and the related Servicer receives notice of a tax lien with respect
      to
      the Mortgage Loan being imposed, the related Servicer shall, promptly and to
      the
      extent required to avoid loss of the Mortgaged Property, advance or cause to
      be
      advanced funds necessary to discharge such lien on the Mortgaged Property unless
      the related Servicer determines the advance to be nonrecoverable. Each Servicer
      assumes full responsibility for the payment of all such bills and shall effect
      payments of all such bills irrespective of the Mortgagor’s faithful performance
      in the payment of same or the making of the Escrow Payments and shall make
      Servicing Advances to effect such payments subject to its determination of
      recoverability.

     

    SECTION
      3.08  Collection
      Accounts, Simple Interest Excess Sub-Account and Distribution
      Account.

     

    (a)  On
      behalf
      of the Trust Fund, each Servicer shall establish and maintain one or more
“Collection Accounts”, held in trust for the benefit of the Trustee and the
      Certificateholders. On behalf of the Trust Fund, each Servicer shall deposit
      or
      cause to be deposited in the clearing account in which it customarily deposits
      payments and collections on mortgage loans in connection with its mortgage
      loan
      servicing activities on a daily basis, and in no event more than one (1)
      Business Day after such Servicer’s receipt thereof, and shall thereafter deposit
      in the related Collection Account, in no event later than two (2) Business
      Days
      after the deposit of good funds into the clearing account, as and when received
      or as otherwise required hereunder, the following payments and collections
      received or made by it on or subsequent to the Cut-off Date:

     

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

     

    (ii)  all
      payments on account of interest (net of the related Servicing Fee payable to
      such Servicer and any Prepayment Interest Excess) on each related Mortgage
      Loan;

     

    (iii)  all
      Insurance Proceeds and Liquidation Proceeds (other than proceeds collected
      in
      respect of any particular REO Property) and all Subsequent Recoveries with
      respect to the related Mortgage Loans;

     

    (iv)  any
      amounts required to be deposited by the related Servicer pursuant to
      Section 3.10 of this Agreement in connection with any losses realized on
      Permitted Investments with respect to funds held in the related Collection
      Account;

     

    (v)  any
      amounts required to be deposited by the related Servicer pursuant to the second
      paragraph of Section 3.11(a) of this Agreement in respect of any blanket
      policy deductibles;

     

    (vi)  any
      Purchase Price or Substitution Shortfall Amount delivered to the related
      Servicer and all proceeds (net of amounts payable or reimbursable to the related
      Servicer, the Master Servicer, the Trustee, the Custodians or the Securities
      Administrator) of the related Mortgage Loans purchased in accordance with
      Section 2.03, Section 3.13 or Section 10.01 of this Agreement;
      and

     

    (vii)  any
      Prepayment Charges collected by the related Servicer in connection with the
      Principal Prepayment of any of the related Mortgage Loans or amounts required
      to
      be deposited by the related Servicer in connection with a breach of its
      obligations under Section 2.05 of this Agreement.

     

    The
      foregoing requirements for deposit in the related Collection Account shall
      be
      exclusive, it being understood and agreed that, without limiting the generality
      of the foregoing, payments in the nature of late payment charges, assumption
      fees or other similar fees need not be deposited by the related Servicer in
      the
      related Collection Account and may be retained by the related Servicer as
      additional servicing compensation. In the event a Servicer shall deposit in
      the
      related Collection Account any amount not required to be deposited therein,
      it
      may at any time withdraw such amount from such Collection Account, any provision
      herein to the contrary notwithstanding.

     

    (b)  Except
      as
      set forth below, no later than the Closing Date, each Servicer servicing Simple
      Interest Mortgage Loans shall establish and maintain a sub-account of the
      related Collection Account titled “[Servicer’s name], Simple Interest Excess
      Sub-Account in trust for the Holders of ACE Securities Corp. Home Equity Loan
      Trust, Series 2006-SD2, Asset Backed Pass-Through Certificates”. The related
      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 3.09(a)(xi) of this Agreement, and shall maintain
      a record of all such deposits. In lieu of establishing a Simple Interest Excess
      Sub-Account, each Servicer may maintain any Net Simple Interest Excess in the
      Collection Account and maintain a separate accounting therefor.

     

    The
      related Servicer shall withdraw amounts on deposit in the Simple Interest Excess
      Sub-Account or in the related Collection Account (in respect of any Net Simple
      Interest Excess) on each Determination Date for deposit to the Distribution
      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.

     

    The
      related Servicer shall remit to the Securities Administrator which shall
      thereupon distribute to the Class CE-1 Certificateholder, based on the
      information provided to it by such Servicer, the amount of any Net Simple
      Interest Excess remaining in the Simple Interest Excess Sub-Account or in the
      related Collection Account, as applicable, on the Distribution Date each year
      occurring in December, commencing in December 2006. Such distributions shall
      be
      deemed to be made on a first-in, first-out basis. In addition, the related
      Servicer shall clear and terminate the Simple Interest Excess Sub-Account,
      if
      any, upon the termination of this Agreement and retain any funds remaining
      therein.

     

    (c)  On
      behalf
      of the Trust Fund, the Securities Administrator shall establish and maintain
      one
      or more accounts (such account or accounts, the “Distribution Account”), held in
      trust for the benefit of the Trustee, the Trust Fund and the Certificateholders.
      On behalf of the Trust Fund, SPS shall deliver funds to the Securities
      Administrator for deposit in the Distribution Account as specified in the
      Servicing Agreement, and Ocwen and Wells Fargo shall deliver to the Securities
      Administrator in immediately available funds for deposit in the Distribution
      Account on the Servicer Remittance Date and with respect to Ocwen on or before
      12:00 noon New York time on the Servicer Remittance Date, that portion of the
      Available Distribution Amount (calculated without regard to the references
      in
      clause (2) of the definition thereof to amounts that may be withdrawn from
      the
      Distribution Account) for the related Distribution Date then on deposit in
      the
      related Collection Account and the amount of all Prepayment Charges collected
      by
      Ocwen or Wells Fargo in connection with the Principal Prepayment of any of
      the
      related Mortgage Loans then on deposit in the related Collection Account and
      the
      amount of any funds reimbursable to an Advance Financing Person pursuant to
      Section 3.25 of this Agreement. If the balance on deposit in a Collection
      Account exceeds $100,000 as of the commencement of business on any Business
      Day
      and such Collection Account constitutes an Eligible Account solely pursuant
      to
      clause (ii) of the definition of “Eligible Account,” the related Servicer shall,
      on or before 5:00 p.m. New York time on such Business Day, withdraw from such
      Collection Account any and all amounts payable or reimbursable to the Depositor,
      such Servicer, the Trustee, the Master Servicer, the Securities Administrator
      or
      the Sponsor pursuant to Section 3.09 of this Agreement and shall pay such
      amounts to the Persons entitled thereto or shall establish a separate Collection
      Account (which shall also be an Eligible Account) and withdraw from the existing
      Collection Account the amount on deposit therein in excess of $100,000 and
      deposit such excess in the newly created Collection Account.

     

    With
      respect to any remittance received by the Securities Administrator after the
      Servicer Remittance Date on which such payment was due, the Securities
      Administrator shall send written notice thereof to the related Servicer. The
      related Servicer shall pay to the Securities Administrator interest on any
      such
      late payment by such Servicer at an annual rate equal to Prime Rate (as defined
      in The Wall Street Journal) plus one percentage point, but in no event greater
      than the maximum amount permitted by applicable law. Such interest shall be
      paid
      by the related Servicer to the Securities Administrator on the date such late
      payment is made and shall cover the period commencing with the day following
      the
      Servicer Remittance Date and ending with the Business Day on which such payment
      is made, both inclusive. The payment by the related Servicer of any such
      interest, or the failure of the Securities Administrator to notify the related
      Servicer of such interest, shall not be deemed an extension of time for payment
      or a waiver of any Event of Default by the related Servicer.

     

    (d)  Funds
      in
      each Collection Account in each Simple Interest Excess Sub-Account and funds
      in
      the Distribution Account may be invested in Permitted Investments in accordance
      with the provisions set forth in Section 3.10 of this Agreement. The
      related Servicer shall give notice to the Trustee, the Securities Administrator
      and the Master Servicer of the location of the Collection Account maintained
      by
      it when established and prior to any change thereof. The Securities
      Administrator shall give notice to the Servicers and the Depositor of the
      location of the Distribution Account when established and prior to any change
      thereof.

     

    (e)  Funds
      held in a Collection Account at any time may be delivered by the related
      Servicer in immediately available funds to the Securities Administrator for
      deposit in the Distribution Account. In the event a Servicer shall deliver
      to
      the Securities Administrator for deposit in the Distribution Account any amount
      not required to be deposited therein, it may at any time request that the
      Securities Administrator withdraw such amount from the Distribution Account
      and
      remit to it any such amount, any provision herein to the contrary
      notwithstanding. In no event shall the Securities Administrator incur liability
      as a result of withdrawals from the Distribution Account at the direction of
      a
      Servicer in accordance with the immediately preceding sentence. In addition,
      each Servicer shall deliver to the Securities Administrator no later than the
      Servicer Remittance Date the amounts set forth in clauses (i) through (iv)
      below:

     

    (i)  any
      P&I Advances, as required pursuant to Section 5.03 of this
      Agreement;

     

    (ii)  any
      amounts required to be deposited pursuant to Section 3.21(d) or 3.21(f) of
      this Agreement in connection with any REO Property;

     

    (iii)  any
      amounts to be paid in connection with a purchase of Mortgage Loans and REO
      Properties pursuant to Section 10.01 of this Agreement; and

     

    (iv)  any
      amounts required to be deposited pursuant to Section 3.22 of this Agreement
      in connection with any Prepayment Interest Shortfalls.

     

    SECTION
      3.09  Withdrawals
      from the Collection Accounts and Distribution Account.

     

    (a)  Each
      Servicer shall, from time to time, make withdrawals from the related Collection
      Account for any of the following purposes or as described in Section 5.03
      of this Agreement:

     

    (i)  to
      remit
      to the Securities Administrator for deposit in the Distribution Account the
      amounts required to be so remitted pursuant to Section 3.08(c) of this
      Agreement or permitted to be so remitted pursuant to the first sentence of
      Section 3.08(e) of this Agreement;

     

    (ii)  subject
      to Section 3.13(d) of this Agreement, to reimburse itself (including any
      successor Servicer) for P&I Advances made by it, but only to the extent of
      amounts received which represent Late Collections (net of the related Servicing
      Fees payable to such Servicer) of Monthly Payments on related Mortgage Loans
      with respect to which such P&I Advances were made in accordance with the
      provisions of Section 5.03 of this Agreement;

     

    (iii)  subject
      to Section 3.13(d) of this Agreement, to pay itself any unpaid Servicing
      Fees payable to such Servicer and reimburse itself any unreimbursed Servicing
      Advances made by the Sponsor or the related Servicer prior to or following
      the
      Cut-off Date with respect to each Mortgage Loan, but only to the extent of
      any
      Liquidation Proceeds and Insurance Proceeds received with respect to such
      Mortgage Loan or rental or other income from the related REO
      Property;

     

    (iv)  to
      pay to
      itself as servicing compensation (in addition to the Servicing Fee payable
      to
      such Servicer) on the Servicer Remittance Date any interest or investment income
      earned on funds deposited in the related Collection Account and the Simple
      Interest Excess Sub-Account;

     

    (v)  to
      pay to
      itself or the Sponsor, as the case may be, with respect to each Mortgage Loan
      that has previously been purchased or replaced pursuant to Section 2.03 or
      Section 3.13(c) of this Agreement all amounts received thereon not included
      in the Purchase Price or the Substitution Shortfall Amount;

     

    (vi)  to
      reimburse itself (including any successor Servicer) for

     

    (A)
      any
      P&I Advance or Servicing Advance previously made by it, which the related
      Servicer has determined to be a Nonrecoverable P&I Advance or a
      Nonrecoverable Servicing Advance in accordance with the provisions of
      Section 5.03 of this Agreement; provided however, that a Servicer shall not
      be entitled to reimbursement for any Servicing Advance made prior to the Cut-off
      Date if such Servicer determines that such Servicing Advance constitutes a
      Nonrecoverable Servicing Advance;

     

    (B)
      any
      unpaid Servicing Fees payable to such Servicer to the extent not recoverable
      from Liquidation Proceeds, Insurance Proceeds or other amounts received with
      respect to the related Mortgage Loan under Section 3.08(a)(iii) of this
      Agreement; or

     

    (C)
      any
      P&I Advance or Servicing Advance made with respect to a delinquent Mortgage
      Loan which Mortgage Loan has been modified by the Servicer in accordance with
      the terms of this Agreement; provided that the Servicer shall only reimburse
      itself for such P&I Advances and Servicing Advances at the time of such
      modification or as otherwise provided in this Section 3.09.

     

    (vii)  to
      reimburse itself or the Depositor for expenses incurred by or reimbursable
      to
      itself or the Depositor, as the case may be, pursuant to Section 3.01 or
      Section 7.03 of this Agreement;

     

    (viii)  to
      reimburse itself or the Trustee, as the case may be, for expenses reasonably
      incurred in respect of the breach or defect giving rise to the purchase
      obligation under Section 2.03 of this Agreement that were included in the
      Purchase Price of the related Mortgage Loan, including any expenses arising
      out
      of the enforcement of the purchase obligation;

     

    (ix)  to
      pay,
      or to reimburse itself for advances in respect of, expenses incurred in
      connection with any Mortgage Loan pursuant to Section 3.13(b) of this
      Agreement;

     

    (x)  to
      pay to
      itself any Prepayment Interest Excess on the related Mortgage Loans to the
      extent not retained pursuant to Section 3.08(a)(ii) of this
      Agreement;

     

    (xi)  to
      deposit in the Simple Interest Excess Sub-Account any amount required to be
      deposited therein pursuant to Section 3.08(b) of this Agreement;
      and

     

    (xii)  to
      clear
      and terminate the related Collection Account pursuant to Section 10.01 of
      this Agreement.

     

    Each
      Servicer shall keep and maintain separate accounting, on a Mortgage Loan by
      Mortgage Loan basis, for the purpose of justifying any withdrawal from the
      related Collection Account, to the extent held by or on behalf of it, pursuant
      to subclauses (ii), (iii), (v), (vi), (vii), (viii), (ix), (x) and (xi)
      above.

     

    (b)  The
      Securities Administrator shall, from time to time, make withdrawals from the
      Distribution Account, for any of the following purposes, without
      priority:

     

    (i)  to
      make
      distributions to Certificateholders in accordance with Section 5.01 of this
      Agreement;

     

    (ii)  to
      pay to
      itself, the Custodians and the Master Servicer amounts to which it is entitled
      pursuant to Section 9.05 or any other provision of this Agreement and any
      Extraordinary Trust Fund Expenses;

     

    (iii)  to
      reimburse itself or the Master Servicer pursuant to Section 8.02 of this
      Agreement;

     

    (iv)  [reserved];

     

    (v)  to
      pay
      any amounts in respect of taxes pursuant to Section 11.01(g)(v) of this
      Agreement;

     

    (vi)  to
      pay
      the Master Servicing Fee to the Master Servicer;

     

    (vii)  to
      pay
      the Credit Risk Management Fee to the Credit Risk Manager; 

     

    (viii)  to
      pay
      the Excess Servicing Fee, if any, to the Class CE-2 Certificateholder pursuant
      to Section 5.01(b) of this Agreement; and

     

    (ix)  to
      clear
      and terminate the Distribution Account pursuant to Section 10.01 of this
      Agreement.

     

    SECTION
      3.10  Investment
      of Funds in the Investment Accounts.

     

    (a)  Each
      Servicer may direct, by means of written directions (which may be standing
      directions), any depository institution maintaining the related Collection
      Account or Simple Interest Excess Sub-Account to invest the funds in such
      Collection Account or Simple Interest Excess Sub-Account (for purposes of this
      Section 3.10, an “Investment Account”) in one or more Permitted Investments
      bearing interest or sold at a discount, and maturing, unless payable on demand,
      (i) no later than the Business Day immediately preceding the date on which
      such
      funds are required to be withdrawn from such account pursuant to this Agreement,
      if a Person other than the Securities Administrator is the obligor thereon,
      and
      (ii) no later than the date on which such funds are required to be withdrawn
      from such account pursuant to this Agreement, if the Securities Administrator
      is
      the obligor on such Permitted Investment. Amounts in the Distribution Account
      may be invested in Permitted Investments as directed in writing by the Master
      Servicer and maturing, unless payable on demand, (i) no later than the Business
      Day immediately preceding the date on which such funds are required to be
      withdrawn from such account pursuant to this Agreement, if a Person other than
      the Securities Administrator is the obligor thereon, and (ii) no later than
      the
      date on which such funds are required to be withdrawn from such account pursuant
      to this Agreement, if the Securities Administrator is the obligor thereon.
      All
      such Permitted Investments shall be held to maturity, unless payable on demand.
      Any investment of funds shall be made in the name of the Trustee (in its
      capacity as such) or in the name of a nominee of the Trustee. The Securities
      Administrator shall be entitled to sole possession over each such investment
      in
      the Distribution Account and, subject to subsection (b) below, the income
      thereon, and any certificate or other instrument evidencing any such investment
      shall be delivered directly to the Securities Administrator or its agent,
      together with any document of transfer necessary to transfer title to such
      investment to the Trustee or its nominee. In the event amounts on deposit in
      a
      Collection Account are at any time invested in a Permitted Investment payable
      on
      demand, the party with investment discretion over such Investment Account
      shall:

     

    (x) consistent
      with any notice required to be given thereunder, demand that payment thereon
      be
      made on the last day such Permitted Investment may otherwise mature hereunder
      in
      an amount equal to the lesser of (1) all amounts then payable thereunder and
      (2)
      the amount required to be withdrawn on such date; and

     

    (y) demand
      payment of all amounts due thereunder promptly upon receipt by such party of
      written notice from the related Servicer that such Permitted Investment would
      not constitute a Permitted Investment in respect of funds thereafter on deposit
      in the Investment Account.

     

    (b)  All
      income and gain realized from the investment of funds deposited in the related
      Collection Account or Simple Interest Excess Sub-Account shall be for the
      benefit of the related Servicer and shall be subject to its withdrawal in
      accordance with Section 3.09 of this Agreement. Each Servicer shall deposit
      in the related Collection Account or Simple Interest Excess Sub-Account the
      amount of any loss incurred in respect of any such Permitted Investment made
      with funds in such account immediately upon realization of such loss. All
      earnings and gain realized from the investment of funds deposited in the
      Distribution Account shall be for the benefit of the Master Servicer. The Master
      Servicer shall remit from its own funds for deposit into the Distribution
      Account the amount of any loss incurred on Permitted Investments in the
      Distribution Account.

     

    (c)  Except
      as
      otherwise expressly provided in this Agreement, if any default occurs in the
      making of a payment due under any Permitted Investment, or if a default occurs
      in any other performance required under any Permitted Investment, the Trustee
      may and, subject to Section 9.01 and Section 9.02(a)(v) of this
      Agreement, shall, at the written direction of the related Servicer, take such
      action as may be appropriate to enforce such payment or performance, including
      the institution and prosecution of appropriate proceedings.

     

    (d)  The
      Trustee, the Master Servicer or their respective Affiliates are permitted to
      receive additional compensation that could be deemed to be in the Trustee’s or
      the Master Servicer’s economic self-interest for (i) serving as investment
      adviser, administrator, shareholder servicing agent, custodian or sub-custodian
      with respect to certain of the Permitted Investments, (ii) using Affiliates
      to
      effect transactions in certain Permitted Investments and (iii) effecting
      transactions in certain Permitted Investments. Such compensation shall not
      be
      considered an amount that is reimbursable or payable to the Trustee or the
      Master Servicer pursuant to Section 3.09 or Section 3.10 of this
      Agreement or otherwise payable in respect of Extraordinary Trust Fund Expenses.
      Such additional compensation shall not be an expense of the Trust
      Fund.

     

    SECTION
      3.11  Maintenance
      of Hazard Insurance, Errors and Omissions and Fidelity Coverage and Primary
      Mortgage Insurance.

     

    (a)  The
      terms
      of each Mortgage Note require the related Mortgagor to maintain fire, flood
      and
      hazard insurance policies. To the extent such policies are not maintained,
      the
      related Servicer shall cause to be maintained for each Mortgaged Property
      related to a Mortgage Loan serviced by such Servicer fire and hazard insurance
      with extended coverage as is customary in the area where the Mortgaged Property
      is located in an amount which is at least equal to the lesser of the current
      principal balance of such Mortgage Loan and the amount necessary to compensate
      fully for any damage or loss to the improvements which are a part of such
      property on a replacement cost basis, in each case in an amount not less than
      such amount as is necessary to avoid the application of any coinsurance clause
      contained in the related hazard insurance policy. Each Servicer shall also
      cause
      to be maintained fire and hazard insurance on each REO Property with extended
      coverage as is customary in the area where the Mortgaged Property is located
      in
      an amount which is at least equal to the lesser of (i) the maximum insurable
      value of the improvements which are a part of such property and (ii) the
      outstanding principal balance of the related Mortgage Loan at the time it became
      an REO Property. Each Servicer will comply in the performance of this Agreement
      with all reasonable rules and requirements of each insurer under any such hazard
      policies. Any amounts to be collected by the related Servicer under any such
      policies (other than amounts to be applied to the restoration or repair of
      the
      property subject to the related Mortgage or amounts to be released to the
      Mortgagor in accordance with Accepted Servicing Practices, subject to the terms
      and conditions of the related Mortgage and Mortgage Note) shall be deposited
      in
      the related Collection Account, subject to withdrawal pursuant to
      Section 3.09 of this Agreement, if received in respect of a Mortgage Loan,
      or in the REO Account, subject to withdrawal pursuant to Section 3.21 of
      this Agreement, if received in respect of an REO Property. Any cost incurred
      by
      a Servicer in maintaining any such insurance shall not, for the purpose of
      calculating distributions to Certificateholders, be added to the unpaid
      principal balance of the related Mortgage Loan, notwithstanding that the terms
      of such Mortgage Loan so permit. It is understood and agreed that no earthquake
      or other additional insurance is to be required of any Mortgagor other than
      pursuant to such applicable laws and regulations as shall at any time be in
      force and as shall require such additional insurance. If
      the
      related Mortgaged Property is located in an area identified by the Flood
      Emergency Management Agency as having special flood hazards (and such flood
      insurance has been made available) the Servicer shall cause to be maintained
      a
      flood insurance policy in an amount representing coverage equal to the lesser
      of: (i) the minimum amount required, under the terms of coverage, to compensate
      for any damage or loss on a replacement cost basis (or the unpaid balance of
      the
      mortgage if replacement cost coverage is not available for the type of building
      insured) and (ii) the maximum amount of insurance which is available under
      the
      Flood Disaster Protection Act of 1973, as amended. If at any time during the
      term of the Mortgage Loan, the Servicer determines in accordance with applicable
      law that a Mortgaged Property or REO Property is located in a special flood
      hazard area and is not covered by flood insurance or is covered in an amount
      less than the amount required by the Flood Disaster Protection Act of 1973,
      as
      amended, the Servicer shall notify the related Mortgagor that the Mortgagor
      must
      obtain such flood insurance coverage, and if said Mortgagor fails to obtain
      the
      required flood insurance coverage within forty-five (45) days after such
      notification, the Servicer shall immediately force place the required flood
      insurance on the Mortgagor’s behalf.

     

    (b)  In
      the
      event that a Servicer shall obtain and maintain a blanket policy with an insurer
      having a General Policy Rating of B:VI or better in Best’s Key Rating Guide or
      otherwise acceptable to Fannie Mae or Freddie Mac insuring against hazard losses
      on all of the Mortgage Loans, it shall conclusively be deemed to have satisfied
      its obligations to cause fire and hazard insurance to be maintained on the
      Mortgaged Properties, it being understood and agreed that such policy may
      contain a deductible clause, in which case the related Servicer shall, in the
      event that there shall not have been maintained on the related Mortgaged
      Property or REO Property a policy complying with the first two sentences of
      this
      Section 3.11, and there shall have been one or more losses which would have
      been covered by such policy, deposit to the related Collection Account from
      its
      own funds the amount not otherwise payable under the blanket policy because
      of
      such deductible clause. In connection with its activities as administrator
      and
      servicer of the Mortgage Loans, the related Servicer agrees to prepare and
      present, on behalf of itself, the Trustee, the Trust Fund and the
      Certificateholders, claims under any such blanket policy in a timely fashion
      in
      accordance with the terms of such policy.

     

    (c)  Each
      Servicer shall keep in force during the term of this Agreement a policy or
      policies of insurance covering errors and omissions for failure in the
      performance of its respective obligations under this Agreement, which policy
      or
      policies shall be in such form and amount that would meet the requirements
      of
      Fannie Mae or Freddie Mac if it were the purchaser of the Mortgage Loans, unless
      the related Servicer has obtained a waiver of such requirements from Fannie
      Mae
      or Freddie Mac. Each Servicer shall also maintain a fidelity bond in the form
      and amount that would meet the requirements of Fannie Mae or Freddie Mac, unless
      the related Servicer has obtained a waiver of such requirements from Fannie
      Mae
      or Freddie Mac. A Servicer shall be deemed to have complied with this provision
      if an Affiliate of such Servicer, has such errors and omissions and fidelity
      bond coverage and, by the terms of such insurance policy or fidelity bond,
      the
      coverage afforded thereunder extends to such Servicer. Any such errors and
      omissions policy and fidelity bond shall by its terms not be cancelable without
      thirty days’ prior written notice to the Trustee.

     

    (d)  The
      Servicers shall not take any action that would result in noncoverage under
      any
      applicable primary mortgage insurance policy of any loss which, but for the
      actions of the related Servicer would have been covered thereunder. Each
      Servicer shall use its best efforts to keep in force and effect any applicable
      primary mortgage insurance policy and, to the extent that the related Mortgage
      Loan requires the Mortgagor to maintain such insurance, any other primary
      mortgage insurance applicable to any Mortgage Loan. Except as required by
      applicable law or the related Mortgage Loan Documents, the Servicers shall
      not
      cancel or refuse to renew any such primary mortgage insurance policy that is
      in
      effect at the date of the initial issuance of the related Mortgage Note and
      is
      required to be kept in force hereunder.

     

    Each
      Servicer agrees to present on behalf of the Trustee and the Certificateholders
      claims to the applicable 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 3.08 of this Agreement, any
      amounts collected by a Servicer under any primary mortgage insurance policies
      shall be deposited in the related Collection Account, subject to withdrawal
      pursuant to Section 3.09 of this Agreement. Notwithstanding any provision
      to the contrary, a Servicer shall not have any responsibility with respect
      to a
      primary mortgage insurance policy unless such Servicer has been made aware
      of
      such policy, as reflected on the Mortgage Loan Schedule or otherwise and have
      been provided with adequate information to administer such policy.

     

    (e)  A
      Servicer need not obtain the approval of the Master Servicer 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 in excess
      of $10,000:

     

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

     

    (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 any.

     

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

     

    Each
      Servicer shall, to the extent it has knowledge of any conveyance of any
      Mortgaged Property by any related Mortgagor (whether by absolute conveyance
      or
      by contract of sale, and whether or not the Mortgagor remains or is to remain
      liable under the Mortgage Note and/or the Mortgage), exercise its rights to
      accelerate the maturity of such Mortgage Loan under the “due-on-sale” clause, if
      any, applicable thereto; provided, however, that the related Servicer shall
      not
      exercise any such rights if prohibited by law from doing so. If a Servicer
      reasonably believes that it is unable under applicable law to enforce such
      “due-on-sale” clause, or if any of the other conditions set forth in the proviso
      to the preceding sentence apply, the related Servicer shall make reasonable
      efforts to enter into an assumption and modification agreement from or with
      the
      person to whom such property has been conveyed or is proposed to be conveyed,
      pursuant to which such person becomes liable under the Mortgage Note and, to
      the
      extent permitted by applicable state law, the Mortgagor remains liable thereon.
      The related Servicer is also authorized to enter into a substitution of
      liability agreement with such person, pursuant to which the original Mortgagor
      is released from liability and such person is substituted as the Mortgagor
      and
      becomes liable under the Mortgage Note, provided that no such substitution
      shall
      be effective unless such person satisfies the then current underwriting criteria
      of the related Servicer for mortgage loans similar to the Mortgage Loans. In
      connection with any assumption or substitution, the related Servicer shall
      apply
      such underwriting standards and follow such practices and procedures as shall
      be
      normal and usual in its general mortgage servicing activities and as it applies
      to other mortgage loans owned solely by it. The related Servicer shall not
      take
      or enter into any assumption and modification agreement, however, unless (to
      the
      extent practicable in the circumstances) it shall have received confirmation,
      in
      writing, of the continued effectiveness of any applicable hazard insurance
      policy. Any fee collected by the related Servicer in respect of an assumption
      or
      substitution of liability agreement will be retained by such Servicer as
      additional servicing compensation. In connection with any such assumption,
      no
      material term of the Mortgage Note (including but not limited to the related
      Mortgage Rate and the amount of the Monthly Payment) may be amended or modified,
      except as otherwise required pursuant to the terms thereof. The related Servicer
      shall notify the Trustee (or the applicable Custodian) that any such
      substitution or assumption agreement has been completed by forwarding to the
      Trustee (or the applicable Custodian) the executed original of such substitution
      or assumption agreement, which document shall be added to the related Mortgage
      File and shall, for all purposes, be considered a part of such Mortgage File
      to
      the same extent as all other documents and instruments constituting a part
      thereof.

     

    Notwithstanding
      the foregoing paragraph or any other provision of this Agreement, the related
      Servicer shall not be deemed to be in default, breach or any other violation
      of
      its obligations hereunder by reason of any assumption of a Mortgage Loan by
      operation of law or by the terms of the Mortgage Note or any assumption which
      the related Servicer may be restricted by law from preventing, for any reason
      whatever. For purposes of this Section 3.12, the term “assumption” is
      deemed to also include a sale (of the Mortgaged Property) subject to the
      Mortgage that is not accompanied by an assumption or substitution of liability
      agreement.

     

    SECTION
      3.13  Realization
      Upon Defaulted Mortgage Loans.

     

    (a)  Each
      Servicer shall use its best efforts, consistent with Accepted Servicing
      Practices, to foreclose upon or otherwise comparably convert the ownership
      of
      properties securing such of the Mortgage Loans as come into and continue in
      default and as to which no satisfactory arrangements can be made for collection
      of delinquent payments pursuant to Section 3.06 of this Agreement. Each
      Servicer shall be responsible for all costs and expenses incurred by it in
      any
      such proceedings; provided, however, that such costs and expenses will be
      recoverable as Servicing Advances by the related Servicer as contemplated in
      Section 3.09 and Section 3.21 of this Agreement. The foregoing is
      subject to the provision that, in any case in which a Mortgaged Property shall
      have suffered damage from an Uninsured Cause, the related Servicer shall not
      be
      required to expend its own funds toward the restoration of such property unless
      it shall determine in its discretion that such restoration will increase the
      proceeds of liquidation of the related Mortgage Loan after reimbursement to
      itself for such expenses.

     

    (b)  Notwithstanding
      the foregoing provisions of this Section 3.13 or any other provision of
      this Agreement, with respect to any Mortgage Loan as to which a Servicer has
      received actual notice of, or has actual knowledge of, the presence of any
      toxic
      or hazardous substance on the related Mortgaged Property, such Servicer shall
      not, on behalf of the Trust Fund, either (i) obtain title to such Mortgaged
      Property as a result of or in lieu of foreclosure or otherwise, or (ii)
      otherwise acquire possession of, or take any other action with respect to,
      such
      Mortgaged Property, if, as a result of any such action, the Trust Fund, the
      Trustee or the Certificateholders would be considered to hold title to, to
      be a
“mortgagee-in-possession” of, or to be an “owner” or “operator” of such
      Mortgaged Property within the meaning of the Comprehensive Environmental
      Response, Compensation and Liability Act of 1980, as amended from time to time,
      or any comparable law, unless such Servicer has also previously determined,
      based on its reasonable judgment and a prudent report prepared by an Independent
      Person who regularly conducts environmental audits using customary industry
      standards, that:

     

    (1) such
      Mortgaged Property is in compliance with applicable environmental laws or,
      if
      not, that it would be in the best economic interest of the Trust Fund to take
      such actions as are necessary to bring the Mortgaged Property into compliance
      therewith; and

     

    (2) there
      are
      no circumstances present at such Mortgaged Property relating to the use,
      management or disposal of any hazardous substances, hazardous materials,
      hazardous wastes or petroleum-based materials for which investigation, testing,
      monitoring, containment, clean-up or remediation could be required under any
      federal, state or local law or regulation, or that if any such materials are
      present for which such action could be required, that it would be in the best
      economic interest of the Trust Fund to take such actions with respect to the
      affected Mortgaged Property.

     

    The
      cost
      of the environmental audit report contemplated by this Section 3.13 shall
      be advanced by the related Servicer, subject to such Servicer’s right to be
      reimbursed therefor from the related Collection Account as provided in
      Section 3.09(a)(ix) of this Agreement, such right of reimbursement being
      prior to the rights of Certificateholders to receive any amount in the related
      Collection Account received in respect of the affected Mortgage Loan or other
      Mortgage Loans.

     

    If
      the
      related Servicer determines, as described above, that it is in the best economic
      interest of the Trust Fund to take such actions as are necessary to bring any
      such Mortgaged Property into compliance with applicable environmental laws,
      or
      to take such action with respect to the containment, clean-up or remediation
      of
      hazardous substances, hazardous materials, hazardous wastes, or petroleum-based
      materials affecting any such Mortgaged Property, then such Servicer shall take
      such action as it deems to be in the best economic interest of the Trust Fund.
      The cost of any such compliance, containment, cleanup or remediation shall
      be
      advanced by the related Servicer, subject to such Servicer’s right to be
      reimbursed therefor from the Collection Account as provided in
      Section 3.09(a)(iii) or Section 3.09(a)(ix) of this Agreement, such
      right of reimbursement being prior to the rights of Certificateholders to
      receive any amount in the related Collection Account received in respect of
      the
      affected Mortgage Loan or other Mortgage Loans.

     

    (c)  The
      Class
      CE-1 Certificateholder shall have the right to purchase from REMIC I any
      Mortgage Loan which was not delinquent as of the Closing Date but which becomes
      delinquent in payment by 90 days or more and, in the event that the Class CE-1
      Certificateholder fails to exercise such option, Ocwen shall have the right
      to
      purchase from REMIC I any such Mortgage Loan, which Ocwen determines in good
      faith will otherwise become subject to foreclosure proceedings (evidence of
      such
      determination to be delivered in writing to the Trustee, in form and substance
      satisfactory to Ocwen and the Trustee prior to purchase). The Purchase Price
      for
      any Mortgage Loan purchased pursuant to this clause (c) shall be (i) remitted
      to
      the Securities Administrator for deposit into the Distribution Account with
      respect to a purchase by the Class CE-1 Certificateholder or (ii) deposited
      in
      the related Collection Account with respect to a purchase by Ocwen, and the
      Trustee, upon receipt of written certification from the Securities Administrator
      or Ocwen, as applicable, of such deposit, shall release or cause to be released
      to the Class CE-1 Certificateholder or Ocwen, as applicable, the related
      Mortgage File and the Trustee shall execute and deliver such instruments of
      transfer or assignment, in each case without recourse, representation or
      warranty, as the Class CE-1 Certificateholder or Ocwen, as applicable, shall
      furnish and as shall be necessary to vest in the Class CE-1 Certificateholder
      or
      Ocwen, as applicable, title to any Mortgage Loan released pursuant
      hereto.

     

    (d)  Proceeds
      received in connection with any Final Recovery Determination, as well as any
      recovery resulting from a partial collection of Insurance Proceeds or
      Liquidation Proceeds, in respect of any Mortgage Loan, will be applied in the
      following order of priority: first, to reimburse the related Servicer for any
      related unreimbursed Servicing Advances and P&I Advances, pursuant to
      Section 3.09(a)(ii) or Section 3.09(a)(iii) of this Agreement; second,
      to accrued and unpaid interest on the Mortgage Loan, to the date of the Final
      Recovery Determination, or to the Due Date prior to the Distribution Date on
      which such amounts are to be distributed if not in connection with a Final
      Recovery Determination; and third, as a recovery of principal of the Mortgage
      Loan. If the amount of the recovery so allocated to interest is less than the
      full amount of accrued and unpaid interest due on such Mortgage Loan, the amount
      of such recovery will be allocated by the related Servicer as follows: first,
      to
      unpaid Servicing Fees; and second, to the balance of the interest then due
      and
      owing. The portion of the recovery so allocated to unpaid Servicing Fees shall
      be reimbursed to the related Servicer pursuant to Section 3.09(a)(iii) of
      this Agreement. The portion of the recovery allocated to interest (net of unpaid
      Servicing Fees) and the portion of the recovery allocated to principal of the
      Mortgage Loan shall be applied as follows: first, to reimburse the related
      Servicer for any related unreimbursed P&I Advances or Servicing Advances in
      accordance with Section 3.09(a)(ii) and Section 3.09(a)(iii) of this
      Agreement and any other amounts reimbursable to such Servicer pursuant to
      Section 3.09 of this Agreement, and second, as part of the amounts to be
      transferred to the Distribution Account in accordance with Section 3.08(c)
      of this Agreement.

     

    (e)  Notwithstanding
      the foregoing provisions of this Section 3.13 or any other provision of
      this Agreement, no Servicer shall acquire title to a Mortgaged Property related
      to a Foreclosure Restricted Mortgage Loan if acquiring title to such Mortgaged
      Property would cause the adjusted basis (for federal income tax purposes) of
      the
      Mortgaged Properties in respect of Foreclosure Restricted Mortgage Loans that
      are currently owned by REMIC I after foreclosure (along with any other assets
      owned by REMIC I other than “qualified mortgages” and “permitted investments”
within the meaning of Section 860G of the Internal Revenue Code) to exceed
      0.75% of the adjusted basis of the assets in REMIC I. Instead, such Servicer
      shall dispose of the Foreclosure Restricted Mortgage Loan for cash in a
      foreclosure sale. In addition, if such Servicer determines that, following
      a
      distribution on any Distribution Date, the adjusted basis of the REO Properties
      relating to such Foreclosure Restricted Mortgage Loans (along with any other
      assets owned by REMIC I other than “qualified mortgages” and “permitted
      investments” within the meaning of Section 860G of the Internal Revenue
      Code) exceeds 1.0% of the adjusted basis of the assets of REMIC I immediately
      after the Distribution Date, then prior to the next Distribution Date, such
      Servicer shall dispose of enough of such REO Properties for cash, so that the
      adjusted basis of such REO Properties relating to Foreclosure Restricted
      Mortgage Loans (along with any other assets owned by REMIC I other than
“qualified mortgages” and “permitted investments” within the meaning of
      Section 860G of the Internal Revenue Code) will be less than 1.0% of the
      adjusted basis of the assets of REMIC I. In either event, such Servicer is
      permitted to acquire (for its own account and not on behalf of the Trust Fund)
      the REO Property at the foreclosure sale for an amount not less than the greater
      of: (i) the highest amount bid by any other person at the foreclosure sale,
      or
      (ii) the estimated fair market value of the REO Property, as determined by
      such
      Servicer in good faith. These restrictions will be lifted with respect to a
      Foreclosure Restricted Mortgage Loan if such Mortgage Loan becomes current
      for
      three consecutive Monthly Payments.

     

    The
      Servicers and the Master Servicer agree to cooperate in providing each Servicer
      with the information regarding the Foreclosure Restricted Mortgage Loans
      serviced by the other Servicer in order to comply with this Section
      3.13(e).

     

    SECTION
      3.14  Trustee
      to Cooperate; Release of Mortgage Files.

     

    (a)  Upon
      becoming aware of the payment in full of any Mortgage Loan, or the receipt
      by a
      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 related Servicer will promptly furnish to the applicable
      Custodian, on behalf of the Trustee, two copies of a request for release
      substantially in the form attached to the related Custodial Agreement signed
      by
      a Servicing Officer or in a mutually agreeable electronic format which will,
      in
      lieu of a signature on its face, originate from a Servicing Officer (which
      certification shall include a statement to the effect that all amounts received
      in connection with such payment that are required to be deposited in the related
      Collection Account have been or will be so deposited) and shall request that
      such Custodian, on behalf of the Trustee, deliver to the related Servicer the
      related Mortgage File. Upon receipt of such certification and request, the
      applicable Custodian, on behalf of the Trustee, shall within five (5) Business
      Days release the related Mortgage File to the related Servicer and the Trustee
      and the applicable Custodian shall have no further responsibility with regard
      to
      such Mortgage File. Upon any such payment in full, the related 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 related Collection
      Account.

     

    (b)  From
      time
      to time and as appropriate for the servicing or foreclosure of any Mortgage
      Loan, the Trustee shall execute such documents as shall be prepared and
      furnished to the Trustee by the related Servicer (in form reasonably acceptable
      to the Trustee) and as are necessary to the prosecution of any such proceedings.
      The applicable Custodian, on behalf of the Trustee, shall, upon the request
      of
      the related Servicer, and delivery to the applicable Custodian of two copies
      of
      a request for release signed by a Servicing Officer substantially in the form
      attached to the related Custodial Agreement (or in a mutually agreeable
      electronic format which will, in lieu of a signature on its face, originate
      from
      a Servicing Officer), release within five (5) Business Days the related Mortgage
      File held in its possession or control to the related Servicer. Such trust
      receipt shall obligate the related Servicer to return the Mortgage File to
      the
      applicable Custodian on behalf of the Trustee, when the need therefor by such
      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 applicable
      Custodian, on behalf of the Trustee, to the related Servicer.

     

    Notwithstanding
      the foregoing, in connection with a Principal Prepayment in full of any Mortgage
      Loan, the Master Servicer may request release of the related Mortgage File
      from
      the applicable Custodian, in accordance with the provisions of the related
      Custodial Agreement, in the event the related Servicer fails to do
      so.

     

    Upon
      written certification of a Servicing Officer, the Trustee shall execute and
      deliver to the related Servicer, any court pleadings, requests for trustee’s
      sale or other documents prepared and delivered to the Trustee and reasonably
      acceptable to it and necessary to the foreclosure or trustee’s sale in respect
      of a Mortgaged Property or to any legal action brought to obtain judgment
      against any Mortgagor on the Mortgage Note or Mortgage or to obtain a deficiency
      judgment, or to enforce any other remedies or rights provided by the Mortgage
      Note or Mortgage or otherwise available at law or in equity. Each such
      certification shall include a request that such pleadings or documents be
      executed by the Trustee and a statement as to the reason such documents or
      pleadings are required and that the execution and delivery thereof by the
      Trustee will not invalidate or otherwise affect the lien of the Mortgage, except
      for the termination of such a lien upon completion of the foreclosure or
      trustee’s sale. So long as no Servicer Event of Default shall have occurred and
      be continuing, the related Servicer shall have the right to execute any and
      all
      such court pleadings, requests and other documents as attorney-in-fact for,
      and
      on behalf of the Trustee. Notwithstanding the preceding sentence, the Trustee
      shall in no way be liable or responsible for the willful malfeasance of the
      Servicer, or for any wrongful or negligent actions taken by the Servicer, while
      the Servicer is acting in its capacity as attorney-in-fact for and on behalf
      of
      the Trustee.

     

    SECTION
      3.15  Servicing
      Compensation.

     

    As
      compensation for its activities hereunder, Wells Fargo shall be entitled to
      the
      Servicing Fee calculated at the Servicing Fee Rate and Ocwen shall be entitled
      to a Servicing Fee calculated at the Ocwen Servicing Fee Rate with respect
      to
      each Mortgage Loan serviced by such Servicer payable solely from payments of
      interest in respect of such Mortgage Loan, subject to Section 3.22 of this
      Agreement. In addition, the related Servicer shall be entitled to recover unpaid
      Servicing Fees out of Insurance Proceeds or Liquidation Proceeds to the extent
      permitted by Section 3.09(a)(iii) of this Agreement and out of amounts
      derived from the operation and sale of an REO Property to the extent permitted
      by Section 3.21 of this Agreement. Subject to Section 3.25 of this
      Agreement, the right to receive the Servicing Fee may not be transferred in
      whole or in part except in connection with the transfer of all of the related
      Servicer’s responsibilities and obligations under this Agreement to the extent
      permitted herein.

     

    Additional
      servicing compensation in the form of assumption fees, late payment charges,
      customary real estate referral fees and other miscellaneous fees (other than
      Prepayment Charges), and ancillary income shall be retained by the related
      Servicer only to the extent such fees or charges are received by such Servicer.
      Each Servicer shall also be entitled pursuant to Section 3.09(a)(iv) of
      this Agreement to withdraw from the related Collection Account and pursuant
      to
      Section 3.21(b) of this Agreement to withdraw from any REO Account, as
      additional servicing compensation, interest or other income earned on deposits
      therein, subject to Section 3.10 of this Agreement. In addition, each
      Servicer shall be entitled to retain or withdraw from the related Collection
      Account, pursuant to Section 3.09(a)(x) of this Agreement, any Prepayment
      Interest Excess with respect to the Mortgage Loans serviced by it as additional
      servicing compensation. Each Servicer shall be required to pay all expenses
      incurred by it in connection with its servicing activities hereunder and shall
      not be entitled to reimbursement therefor except as specifically provided
      herein.

     

    SECTION
      3.16  Collection
      Account Statements.

     

    Upon
      request, not later than fifteen days after each Distribution Date,
      each
      Servicer shall forward to the Master Servicer and with respect to Ocwen, to
      the
      Securities Administrator, the Trustee and the Depositor a statement prepared
      by
      the institution at which the related Collection Account is maintained setting
      forth the status of the related Collection Account as of the close of business
      on such Distribution Date and showing, for the period covered by such statement,
      the aggregate amount of deposits into and withdrawals from the related
      Collection Account of each category of deposit specified in Section 3.08(a)
      of this Agreement and each category of withdrawal specified in Section 3.09
      of this Agreement. The Master Servicer shall forward the statement provided
      by
      Wells Fargo pursuant to the preceding sentence to the Securities Administrator,
      the Trustee and the Depositor, upon request, within a reasonable time after
      its
      receipt of such statement from Wells Fargo. Copies of such statement and any
      similar statements provided by the Servicers shall be provided by the Securities
      Administrator to any Certificateholder and to any Person identified to the
      Securities Administrator as a prospective transferee of a Certificate, upon
      request at the expense of the requesting party, provided such statement is
      delivered by the related Servicer to the Securities Administrator.

     

    SECTION
      3.17  Annual
      Statement as to Compliance.

     

    (a)  (i)
      Ocwen
      shall deliver (and shall cause any Additional Servicer engaged by it to deliver)
      to the Master Servicer and the Depositor and (ii) Wells Fargo shall deliver
      (and
      shall cause any Additional Servicer engaged by it to deliver) to the Master
      Servicer and the Master Servicer shall deliver to the Depositor on behalf of
      Wells Fargo, on or before March 15 of each year, commencing in March 2007,
      an
      Officer’s Certificate stating, as to the signer thereof, that (A) a review of
      such party’s activities during the preceding calendar year or portion thereof
      and of such Servicer’s performance under this Agreement, or such other
      applicable agreement in the case of an Additional Servicer, has been made under
      such officer’s supervision and (B) to the best of such officer’s knowledge,
      based on such review, such party has fulfilled all its obligations under this
      Agreement, or such other applicable agreement in the case of an Additional
      Servicer, in all material respects throughout such year or portion thereof,
      or,
      if there has been a failure to fulfill any such obligation in any material
      respect, specifying each such failure known to such officer and the nature
      and
      status thereof. Promptly after receipt of each such Officer’s Certificate from a
      Servicer or any Additional Servicer engaged by a Servicer, the Depositor shall
      review such Officer’s Certificate and, if applicable, consult with each such
      party, as applicable, as to the nature of any failures by such party, in the
      fulfillment of any of such Servicer’s obligations hereunder or, in the case of
      an Additional Servicer, under such other applicable agreement.

     

    (b)  Failure
      of a Servicer to comply timely with this Section 3.17 shall be deemed a Servicer
      Event of Default as to such Servicer, automatically, without notice and without
      any cure period, and the Master Servicer may, in addition to whatever rights
      the
      Master Servicer may have under this Agreement and at law or in equity or to
      damages, including injunctive relief and specific performance, terminate all
      the
      rights and obligations of such Servicer under this Agreement and in and to
      the
      Mortgage Loans and the proceeds thereof without compensating such Servicer
      for
      the same (other than the Servicer’s right to reimbursement of unreimbursed
      P&I Advances and Servicing Advances and accrued and unpaid Servicing Fees in
      the manner provided in this Agreement). This paragraph shall supersede any
      other
      provision in this Agreement or any other agreement to the contrary.

     

    SECTION
      3.18  Assessments
      of Compliance and Attestation Reports.

     

    (a)  By
      March
      15 of each year, commencing in March 2007, each Servicer, at its own expense,
      shall furnish, and shall cause any Servicing Function Participant engaged by
      it
      to furnish, each at its own expense, to the Master Servicer, a report on an
      assessment of compliance with the Relevant Servicing Criteria that contains
      (A)
      a statement by such party of its responsibility for assessing compliance with
      the Relevant Servicing Criteria, (B) a statement that such party used the
      Relevant Servicing Criteria to assess compliance with the Relevant Servicing
      Criteria, (C) such party’s assessment of compliance with the Relevant Servicing
      Criteria as of and for the fiscal year covered by the Form 10-K required to
      be
      filed pursuant to Section 5.06(d), including, if there has been any material
      instance of noncompliance with the Relevant Servicing Criteria, a discussion
      of
      each such failure and the nature and status thereof, and (D) a statement that
      a
      registered public accounting firm has issued an attestation report on such
      party’s assessment of compliance with the Relevant Servicing Criteria as of and
      for such period. Notwithstanding the foregoing, neither Servicer nor any
      Servicing Function Participant engaged by a Servicer shall be required to
      deliver any assessments until March 31st
      in any
      given year so long as it has not received written confirmation from the
      Depositor that a Form 10-K is required to be filed in respect of the Trust
      for
      the preceding calendar year, however, notwithstanding anything herein to the
      contrary, no Subcontractor will be required to deliver any assessments in any
      such given year in which the Form 10-K is not required to be filed.

     

    (b)  By
      March
      15 of each year, commencing in March 2007, each Servicer, at its own expense,
      shall cause, and each Servicer shall cause any Servicing Function Participant
      engaged by it to cause, each at its own expense, a registered public accounting
      firm (which may also render other services to such Servicer or such other
      Servicing Function Participants, as the case may be) and that is a member of
      the
      American Institute of Certified Public Accountants to furnish a report to the
      Master Servicer, to the effect that (i) it has obtained a representation
      regarding certain matters from the management of such party, which includes
      an
      assertion that such party has complied with the Relevant Servicing Criteria,
      and
      (ii) on the basis of an examination conducted by such firm in accordance with
      standards for attestation engagements issued or adopted by the PCAOB, it is
      expressing an opinion as to whether such party’s compliance with the Relevant
      Servicing Criteria was fairly stated in all material respects, or it cannot
      express an overall opinion regarding such party’s assessment of compliance with
      the Relevant Servicing Criteria. In the event that an overall opinion cannot
      be
      expressed, such registered public accounting firm shall state in such report
      why
      it was unable to express such an opinion. Such report must be available for
      general use and not contain restricted use language. Notwithstanding the
      foregoing, neither Servicer nor any Servicing Function Participant engaged
      by a
      Servicer shall be required to deliver or cause the delivery of such reports
      until March 31st
      in any
      given year so long as such Servicer has not received written confirmation from
      the Depositor that a Form 10-K is required to be filed in respect of the Trust
      for the preceding fiscal year, however, notwithstanding anything herein to
      the
      contrary, no Subcontractor will be required to deliver any report in any such
      given year in which the Form 10-K is not required to be filed.

     

    (c)  Failure
      of a Servicer to comply timely with this Section 3.18 shall be deemed a Servicer
      Event of Default as to such Servicer, automatically, without notice and without
      any cure period, and the Master Servicer may, in addition to whatever rights
      the
      Master Servicer may have under this Agreement and at law or in equity or to
      damages, including injunctive relief and specific performance, terminate all
      the
      rights and obligations of such Servicer under this Agreement and in and to
      the
      Mortgage Loans and the proceeds thereof without compensating such Servicer
      for
      the same (other than the Servicer’s right to reimbursement of unreimbursed
      P&I Advances and Servicing Advances and accrued and unpaid Servicing Fees in
      the manner provided for in this Agreement). This paragraph shall supersede
      any
      other provision in this Agreement or any other agreement to the
      contrary.

     

    SECTION
      3.19  Annual
      Certification; Additional Information.

     

    (a)  Each
      Servicer shall and shall cause any Servicing Function Participant engaged by
      it
      to, provide to the Person who signs the Sarbanes-Oxley Certification (the
“Certifying Person”), by March 15 of each year in which the Trust is subject to
      the reporting requirements of the Exchange Act a certification (each, a “Back-Up
      Certification”), in the form attached hereto as Exhibit C, upon which the
      Certifying Person, the entity for which the Certifying Person acts as an
      officer, and such entity’s officers, directors and Affiliates (collectively with
      the Certifying Person, “Certification Parties”) can reasonably rely. The officer
      of the Master Servicer in charge of the master servicing function shall serve
      as
      the Certifying Person on behalf of the Trust. In the event a Servicer or any
      Servicing Function Participant engaged by it is terminated or resigns pursuant
      to the terms of this Agreement, or any applicable Sub-Servicing agreement,
      as
      the case may be, such party shall provide a Back-Up Certification to the
      Certifying Person pursuant to this Section 3.19 with respect to the period
      of
      time it was subject to this Agreement or any applicable Sub-Servicing Agreement,
      as the case may be.

     

    (b)  Each
      Servicer shall indemnify and hold harmless the Master Servicer, the Securities
      Administrator, the Trustee, the Depositor and their respective officers,
      directors, agents and affiliates from and against any losses, damages,
      penalties, fines, forfeitures, reasonable legal fees and related costs,
      judgments and other costs and expenses arising out of or based upon a breach
      by
      such Servicer or any of its officers, directors, agents or affiliates of its
      obligations under this Section 3.19 or such Servicer’s negligence, bad
      faith or willful misconduct in connection therewith. Such indemnity shall
      survive the termination or resignation of the parties hereto or the termination
      of this Agreement. If the indemnification provided for herein is unavailable
      or
      insufficient to hold harmless the Master Servicer, the Securities Administrator,
      the Trustee and the Depositor, then the related Servicer agrees that it shall
      contribute to the amount paid or payable by the Master Servicer, the Securities
      Administrator, the Trustee and the Depositor as a result of the losses, claims,
      damages or liabilities of the Master Servicer, the Securities Administrator,
      the
      Trustee and the Depositor in such proportion as is appropriate to reflect the
      relative fault of the Master Servicer, the Securities Administrator, the Trustee
      and the Depositor on the one hand and the related Servicer on the other in
      connection with a breach of such Servicer’s obligations under this
      Section 3.19.

     

    (c)  Each
      Servicer shall provide to the Master Servicer prompt notice of the occurrence
      of
      any of the following: 

     

    (i)  any
      Servicer Event of Default under the terms of this Agreement, any merger,
      consolidation or sale of substantially all of the assets of such Servicer,
      such
      Servicer’s engagement of any Sub-Servicer to perform or assist in the
      performance of any of such Servicer’s obligations under this Agreement, any
      material litigation involving such Servicer that is material to the
      Certificateholders, and to the extent disclosure is required under Regulation
      AB, any affiliation or other significant relationship between such Servicer
      and
      the Sponsor, the Depositor, the Master Servicer, the Securities Administrator,
      the Trustee, the Custodians, another Servicer and Quick Loan Funding
      Inc.

     

    (ii)  If
      the
      Servicer has knowledge of the occurrence of any of the events described in
      this
      clause (ii), then no later than ten days prior to the deadline for the filing
      of
      any Distribution Report on Form 10-D in respect of the Trust, such Servicer
      shall provide to the Master Servicer notice of the occurrence of any of the
      following events along with all information, data, and materials related thereto
      as may be required to be included in the related Distribution Report on Form
      10-D (as specified in the provisions of Regulation AB referenced
      below):

     

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

     

    (B) material
      breaches of pool asset representations or warranties or servicer transaction
      covenants relating to the Mortgage Loans serviced by the Servicer (Item
      1121(a)(12) of Regulation AB); and

     

    (C) any
      material pool asset changes (such as, additions, substitutions or repurchases)
      relating to the Mortgage Loans serviced by the Servicer (Item 1121(a)(14) of
      Regulation AB).

     

    (d)  Each
      Servicer shall provide to the Master Servicer and the Securities Administrator
      such additional information as the Master Servicer and the Securities
      Administrator may reasonably request, including evidence of the authorization
      of
      the person signing any certification or statement, financial information and
      reports and of the fidelity bond and errors and omissions insurance policy
      required to be maintained by such Servicer pursuant to this Agreement, and
      such
      other information related to such Servicer or its performance
      hereunder.

     

    SECTION
      3.20  Access
      to Certain Documentation.

     

    Each
      Servicer shall provide to the Depositor and Trustee, access to the documentation
      regarding the Mortgage Loans required by applicable laws and regulations. Such
      access shall be afforded without charge, but only upon reasonable request and
      during normal business hours at the offices of the related Servicer designated
      by it. Nothing in this Section 3.20 shall limit the obligation of the
      related Servicer to comply with 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 3.20 shall
      require any Servicer to collect, create, collate or otherwise generate any
      information that it does not generate in its usual course of business. The
      Servicers shall not be required to make copies of or ship documents to any
      Person unless provisions have been made for the reimbursement of the costs
      thereof.

     

    SECTION
      3.21  Title,
      Management and Disposition of REO Property.

     

    (a)  The
      deed
      or certificate of sale of any REO Property shall be taken in the name of the
      Trustee, or its nominee, on behalf of the Trust Fund and for the benefit of
      the
      Certificateholders. The related Servicer, on behalf of REMIC I, shall either
      sell any REO Property by the close of the third calendar year following the
      calendar year in which REMIC I acquires ownership of such REO Property for
      purposes of Section 860G(a)(8) of the Code or request from the Internal
      Revenue Service, no later than sixty (60) days before the day on which the
      three-year grace period would otherwise expire an extension of the three-year
      grace period, unless such Servicer had delivered to the Trustee an Opinion
      of
      Counsel, addressed to the Trustee and the Depositor, to the effect that the
      holding by REMIC I of such REO Property subsequent to three years after its
      acquisition will not result in the imposition on any Trust REMIC created
      hereunder of taxes on “prohibited transactions” thereof, as defined in
      Section 860F of the Code, or cause any Trust REMIC hereunder to fail to
      qualify as a REMIC under Federal law at any time that any Certificates are
      outstanding. Each Servicer shall manage, conserve, protect and operate each
      REO
      Property for the Certificateholders solely for the purpose of its prompt
      disposition and sale in a manner which does not cause such REO Property to
      fail
      to qualify as “foreclosure property” within the meaning of
      Section 860G(a)(8) of the Code or result in the receipt by any Trust REMIC
      created hereunder of any “income from non-permitted assets” within the meaning
      of Section 860F(a)(2)(B) of the Code, or any “net income from foreclosure
      property” which is subject to taxation under the REMIC Provisions.

     

    (b)  Each
      Servicer shall segregate and hold all funds collected and received in connection
      with the operation of any REO Property separate and apart from its own funds
      and
      general assets and shall establish and maintain with respect to REO Properties
      an account held in trust for the Trustee, on behalf of the Trust Fund and for
      the benefit of the Certificateholders (the “REO Account”), which shall be an
      Eligible Account. The related Servicer shall be permitted to allow the related
      Collection Account to serve as the REO Account, subject to the maintenance
      of
      separate ledgers for each REO Property. The related Servicer shall be entitled
      to retain or withdraw any interest income paid on funds deposited in the REO
      Account.

     

    (c)  Each
      Servicer shall have full power and authority, subject only to the specific
      requirements and prohibitions of this Agreement, to do any and all things in
      connection with any REO Property as are consistent with the manner in which
      such
      Servicer manages and operates similar property owned by it or any of its
      Affiliates, all on such terms and for such period as such Servicer deems to
      be
      in the best interests of Certificateholders. In connection therewith, the
      related Servicer shall deposit, or cause to be deposited in the clearing account
      in which it customarily deposits payments and collections on mortgage loans
      in
      connection with its mortgage loan servicing activities on a daily basis, and
      in
      no event more than one Business Day after such Servicer’s receipt thereof, and
      shall thereafter deposit in the REO Account, in no event more than two Business
      Days after the deposit of good funds into the clearing account, all revenues
      received by it with respect to an REO Property and shall withdraw therefrom
      funds necessary for the proper operation, management and maintenance of such
      REO
      Property including, without limitation:

     

    (i)  all
      insurance premiums due and payable in respect of such REO Property;

     

    (ii)  all
      real
      estate taxes and assessments in respect of such REO Property that may result
      in
      the imposition of a lien thereon; and

     

    (iii)  all
      costs
      and expenses necessary to maintain such REO Property.

     

    To
      the
      extent that amounts on deposit in the REO Account with respect to an REO
      Property are insufficient for the purposes set forth in clauses (i) through
      (iii) above with respect to such REO Property, the related Servicer shall
      advance from its own funds such amount as is necessary for such purposes if,
      but
      only if, such Servicer would make such advances if such Servicer owned the
      REO
      Property and if in such Servicer’s judgment, the payment of such amounts will be
      recoverable from the rental or sale of the REO Property.

     

    Subject
      to compliance with applicable laws and regulations as shall at any time be
      in
      force, and notwithstanding the foregoing, the related Servicer, on behalf of
      the
      Trust Fund, shall not:

     

    (i)  enter
      into, renew or extend any New Lease with respect to any REO Property, if the
      New
      Lease by its terms will give rise to any income that does not constitute Rents
      from Real Property;

     

    (ii)  permit
      any amount to be received or accrued under any New Lease other than amounts
      that
      will constitute Rents from Real Property;

     

    (iii)  authorize
      or permit any construction on any REO Property, other than the completion of
      a
      building or other improvement thereon, and then only if more than ten percent
      of
      the construction of such building or other improvement was completed before
      default on the related Mortgage Loan became imminent, all within the meaning
      of
      Section 856(e)(4)(B) of the Code; or

     

    (iv)  allow
      any
      Person to Directly Operate any REO Property on any date more than ninety (90)
      days after its date of acquisition by the Trust Fund;

     

    unless,
      in any such case, the related Servicer has obtained an Opinion of Counsel,
      provided to such Servicer and the Trustee, to the effect that such action will
      not cause such REO Property to fail to qualify as “foreclosure property” within
      the meaning of Section 860G(a)(8) of the Code at any time that it is held
      by REMIC I, in which case such Servicer may take such actions as are specified
      in such Opinion of Counsel.

     

    Each
      Servicer may contract with any Independent Contractor for the operation and
      management of any REO Property, provided that:

     

    (i)  the
      terms
      and conditions of any such contract shall not be inconsistent
      herewith;

     

    (ii)  any
      such
      contract shall require, or shall be administered to require, that the
      Independent Contractor pay all costs and expenses incurred in connection with
      the operation and management of such REO Property, including those listed above
      and remit all related revenues (net of such costs and expenses) to such Servicer
      as soon as practicable, but in no event later than thirty days following the
      receipt thereof by such Independent Contractor;

     

    (iii)  none
      of
      the provisions of this Section 3.21(c) relating to any such contract or to
      actions taken through any such Independent Contractor shall be deemed to relieve
      the Servicer of any of its duties and obligations to the Trustee on behalf
      of
      the Trust Fund and for the benefit of the Certificateholders with respect to
      the
      operation and management of any such REO Property; and

     

    (iv)  Such
      Servicer shall be obligated with respect thereto to the same extent as if it
      alone were performing all duties and obligations in connection with the
      operation and management of such REO Property.

     

    Each
      Servicer shall be entitled to enter into any agreement with any Independent
      Contractor performing services for it related to its duties and obligations
      hereunder for indemnification of such Servicer by such Independent Contractor,
      and nothing in this Agreement shall be deemed to limit or modify such
      indemnification. The related Servicer shall be solely liable for all fees owed
      by it to any such Independent Contractor, irrespective of whether such
      Servicer’s compensation pursuant to Section 3.15 of this Agreement is
      sufficient to pay such fees. Any such agreement shall include a provision that
      such agreement may be immediately terminated by any successor servicer
      (including the Master Servicer) without fee, in the event the related Servicer
      shall for any reason, no longer be the Servicer of the Mortgage Loans (including
      termination due to a Servicer Event of Default).

     

    (d)  In
      addition to the withdrawals permitted under Section 3.21(c) of this
      Agreement, each Servicer may from time to time make withdrawals from the related
      REO Account for any REO Property: (i) to pay itself unpaid Servicing Fees in
      respect of the related Mortgage Loan; and (ii) to reimburse itself or any
      Sub-Servicer for unreimbursed Servicing Advances and Advances made in respect
      of
      such REO Property or the related Mortgage Loan. On the Servicer Remittance
      Date,
      the related Servicer shall withdraw from each REO Account maintained by it
      and
      deposit into the Distribution Account in accordance with
      Section 3.08(e)(ii) of this Agreement, for distribution on the related
      Distribution Date in accordance with Section 5.01 of this Agreement, the
      income from the related REO Property received during the prior calendar month,
      net of any withdrawals made pursuant to Section 3.21(c) of this Agreement
      or this Section 3.21(d).

     

    (e)  Subject
      to the time constraints set forth in Section 3.21(a) of this Agreement,
      each REO Disposition shall be carried out by the related Servicer at such price
      and upon such terms and conditions as such Servicer shall deem necessary or
      advisable, as shall be normal and usual in accordance with Accepted Servicing
      Practices.

     

    (f)  The
      proceeds from the REO Disposition, net of any amount required by law to be
      remitted to the Mortgagor under the related Mortgage Loan and net of any payment
      or reimbursement to the related Servicer as provided above, shall be deposited
      in the Distribution Account in accordance with Section 3.08(e)(ii) of this
      Agreement on the Servicer Remittance Date in the month following the receipt
      thereof for distribution on the related Distribution Date in accordance with
      Section 5.01 of this Agreement. Any REO Disposition shall be for cash only
      (unless changes in the REMIC Provisions made subsequent to the Startup Day
      allow
      a sale for other consideration).

     

    (g)  Each
      Servicer shall file information returns (and shall provide a certification
      of a
      Servicing Officer to the Master Servicer that such filings have been made)
      with
      respect to the receipt of mortgage interest received in a trade or business,
      reports of foreclosures and abandonments of any Mortgaged Property and
      cancellation of indebtedness income with respect to any Mortgaged Property
      as
      required by Sections 6050H, 6050J and 6050P of the Code, respectively. Such
      reports shall be in form and substance sufficient to meet the reporting
      requirements imposed by such Sections 6050H, 6050J and 6050P of the
      Code.

     

    SECTION
      3.22  Obligations
      of Each Servicer in Respect of Prepayment Interest Shortfalls; Relief Act
      Interest Shortfalls.

     

    Each
      Servicer shall deliver to the Securities Administrator for deposit into the
      Distribution Account on the Servicer Remittance Date and with respect to Ocwen
      on or before 12:00 noon New York time on the Servicer Remittance Date from
      its
      own funds an amount equal to the lesser of (i) the aggregate amount of the
      Prepayment Interest Shortfalls attributable to Principal Prepayments in full
      on
      the Mortgage Loans for the related Distribution Date resulting solely from
      voluntary Principal Prepayments received by the related Servicer during the
      portion of the Prepayment Period occurring from (i) with respect to Wells Fargo,
      the 14th
      day of
      the month preceding the month in which the related Distribution Date occurs
      and
      ending on the last day of the month preceding the month in which the related
      Distribution Date occurs and (ii) with respect to Ocwen, the 16th
      day of
      the month preceding the month in which the related Distribution Date occurs
      and
      ending on the last day of the month preceding the month in which the related
      Distribution Date occurs and (ii) the aggregate amount of the related Servicing
      Fees payable to the related Servicer on such Distribution Date with respect
      to
      the related Mortgage Loans. The Servicers shall not have the right to
      reimbursement for any amounts remitted to the Securities Administrator in
      respect of this Section 3.22. The Servicers shall not be obligated to pay
      the amounts set forth in this Section 3.22 with respect to shortfalls
      resulting from the application of the Relief Act.

     

    SECTION
      3.23  Obligations
      of Each Servicer in Respect of Mortgage Rates and Monthly
      Payments.

     

    In
      the
      event that a shortfall in any collection on or liability with respect to any
      Mortgage Loan results from or is attributable to adjustments to Mortgage Rates,
      Monthly Payments or Scheduled Principal Balances that were made by the related
      Servicer in a manner not consistent with the terms of the related Mortgage
      Note
      and this Agreement, such Servicer, upon discovery or receipt of notice thereof,
      immediately shall deliver to the Securities Administrator for deposit in the
      Distribution Account from its own funds the amount of any such shortfall and
      shall indemnify and hold harmless the Trust Fund, the Trustee, the Securities
      Administrator, the Master Servicer, the Depositor and any successor servicer
      in
      respect of any such liability. Such indemnities shall survive the termination
      or
      discharge of this Agreement. Notwithstanding the foregoing, this
      Section 3.23 shall not limit the ability of the related Servicer to seek
      recovery of any such amounts from the related Mortgagor under the terms of
      the
      related Mortgage Note and Mortgage, to the extent permitted by applicable
      law.

     

    SECTION
      3.24  Reserve
      Fund.

     

    (a)  No
      later
      than the Closing Date, the Securities Administrator shall establish and maintain
      a separate, segregated trust account entitled, “Reserve Fund, Wells Fargo Bank,
      National Association, in trust for the registered holders of ACE Securities
      Corp. Home Equity Loan Trust, Series 2006-SD2, Asset Backed Pass-Through
      Certificates.” On the Closing Date, the Depositor will deposit, or cause to be
      deposited, into the Reserve Fund $1,000. 

     

    (b)  On
      each
      Distribution Date, the Securities Administrator shall deposit into the Reserve
      Fund the amounts described in clause sixth
      of
      Section 5.01(a)(5) of this Agreement, rather than distributing such amounts
      to the Class CE-1 Certificateholders, and in clause seventh
      of
      Section 5.01(a)(5) of this Agreement. On each such Distribution Date, the
      Securities Administrator shall hold all such amounts for the benefit of the
      Holders of the Class A Certificates and the Mezzanine Certificates and will
      distribute such amounts to the Holders of the Class A Certificates and the
      Mezzanine Certificates, in the amounts and priorities set forth in
      Section 5.01(a) of this Agreement. If no Net WAC Rate Carryover Amounts are
      payable on a Distribution Date, the Securities Administrator shall deposit,
      into
      the Reserve Fund on behalf of the Class CE-1 Certificateholders, from amounts
      otherwise distributable to the Class CE-1 Certificateholders, an amount such
      that when added to other amounts already on deposit in the Reserve Fund, the
      aggregate amount on deposit therein is equal to $1,000.

     

    (c)  It
      is the
      intention of the parties hereto that, for federal and state income and state
      and
      local franchise tax purposes, the Reserve Fund be disregarded as an entity
      separate from the Holder of the Class CE-1 Certificates unless and until the
      date when either (a) there is more than one Class CE-1 Certificateholder or
      (b)
      any Class of Certificates in addition to the Class CE-1 Certificates is
      recharacterized as an equity interest in the Reserve Fund for federal income
      tax
      purposes, in which case it is the intention of the parties hereto that, for
      federal and state income and state and local franchise tax purposes, the Reserve
      Fund be treated as a partnership. The Securities Administrator shall not be
      required to prepare and file partnership tax returns in respect of such
      partnership unless it receives additional reasonable compensation (not to exceed
      $10,000 per year) for the preparation of such filings, written notification
      recognizing the creation of a partnership agreement or comparable documentation
      evidencing the partnership. All amounts deposited into the Reserve Fund (other
      than the initial deposit therein of $1,000) shall be treated as amounts
      distributed by REMIC II to the Holders of the Class CE-1 Certificates. Upon
      the
      termination of the Trust Fund, or the payment in full of the Class A
      Certificates and the Mezzanine Certificates, all amounts remaining on deposit
      in
      the Reserve Fund will be released by the Trust Fund and distributed to the
      Class
      CE-1 Certificateholders or their designees. The Reserve Fund constitutes an
      “outside reserve fund” within the meaning of Treasury Regulation § 1.860G-2(h).
      The Reserve Fund will be part of the Trust Fund but not part of any REMIC and
      any payments to the Holders of the Class A Certificates or the Mezzanine
      Certificates of Net WAC Rate Carryover Amounts will not be payments with respect
      to a “regular interest” in a REMIC within the meaning of Code
      Section 860(G)(a)(1).

     

    (d)  By
      accepting a Class CE-1 Certificate, each Class CE-1 Certificateholder hereby
      agrees that the Securities Administrator will deposit into the Reserve Fund
      the
      amounts described above on each Distribution Date rather than distributing
      such
      amounts to the Class CE-1 Certificateholders. By accepting a Class CE-1
      Certificate, each Class CE-1 Certificateholder further agrees that its agreement
      to such action by the Securities Administrator is given for good and valuable
      consideration, the receipt and sufficiency of which is acknowledged by such
      acceptance.

     

    (e)  At
      the
      direction of the Holders of a majority in Percentage Interest in the Class
      CE-1
      Certificates, the Securities Administrator shall direct any depository
      institution maintaining the Reserve Fund to invest the funds in such account
      in
      one or more Permitted Investments bearing interest or sold at a discount, and
      maturing, unless payable on demand, (i) no later than the Business Day
      immediately preceding the date on which such funds are required to be withdrawn
      from such account pursuant to this Agreement, if a Person other than the
      Securities Administrator or an Affiliate manages or advises such investment,
      and
      (ii) no later than the date on which such funds are required to be withdrawn
      from such account pursuant to this Agreement, if the Securities Administrator
      or
      an Affiliate manages or advises such investment. All income and gain earned
      upon
      such investment shall be deposited into the Reserve Fund. In no event shall
      the
      Securities Administrator be liable for any investments made pursuant to this
      clause (e). If the Holders of a majority in Percentage Interest in the Class
      CE-1 Certificates fail to provide investment instructions, funds on deposit
      in
      the Reserve Fund shall be held uninvested by the Securities Administrator
      without liability for interest or compensation.

     

    (f)  For
      federal tax return and information reporting, the right of the Class A
      Certificateholders and the Mezzanine Certificateholders to receive payments
      from
      the Reserve Fund in respect of any Net WAC Rate Carryover Amount shall be
      assigned a value of $1,000.00.

     

    SECTION
      3.25  Advance
      Facility.

     

    (a)  Notwithstanding
      anything to the contrary contained herein, (i) each Servicer is hereby
      authorized to enter into an advance facility (“Advance Facility”) but no more
      than two Advance Facilities without the prior written consent of the Trustee,
      which consent shall not be unreasonably withheld, under which (A) such Servicer
      sells, assigns or pledges to an advancing person (an “Advance Financing Person”)
      its rights under this Agreement to be reimbursed for any P&I Advances or
      Servicing Advances and/or (B) an Advance Financing Person agrees to finance
      some
      or all P&I Advances or Servicing Advances required to be made by such
      Servicer pursuant to this Agreement and (ii) each Servicer is hereby authorized
      to assign its rights to the Servicing Fee (which rights shall terminate upon
      the
      resignation, termination or removal of such Servicer pursuant to the terms
      of
      this Agreement); it being understood that neither the Trust Fund nor any party
      hereto shall have a right or claim (including without limitation any right
      of
      offset) to any amounts for reimbursement of P&I Advances or Servicing
      Advances so assigned or to the portion of the Servicing Fee so assigned. Subject
      to the provisions of the first sentence of this Section 3.25(a), no consent
      of the Depositor, Trustee, Master Servicer, Certificateholders or any other
      party is required before the related Servicer may enter into an Advance
      Facility, but such Servicer shall provide notice to the Depositor, Master
      Servicer and the Trustee of the existence of any such Advance Facility promptly
      upon the consummation thereof stating (a) the identity of the Advance Financing
      Person and (b) the identity of any Person (“Servicer’s Assignee”) who has the
      right to receive amounts in reimbursement of previously unreimbursed P&I
      Advances or Servicing Advances. Notwithstanding the existence of any Advance
      Facility under which an advancing person agrees to finance P&I Advances
      and/or Servicing Advances on the related Servicer’s behalf, such Servicer shall
      remain obligated pursuant to this Agreement to make P&I Advances and
      Servicing Advances pursuant to and as required by this Agreement, and shall
      not
      be relieved of such obligations by virtue of such Advance Facility.

     

    (b)  Reimbursement
      amounts (“Advance Reimbursement Amounts”) shall consist solely of amounts in
      respect of P&I Advances and/or Servicing Advances made with respect to the
      Mortgage Loans for which the related Servicer would be permitted to reimburse
      itself in accordance with this Agreement, assuming such Servicer had made the
      related P&I Advance(s) and/or Servicing Advance(s).

     

    (c)  Each
      Servicer shall maintain and provide to any successor Servicer (with, upon
      request, a copy to the Trustee) a detailed accounting on a loan-by-loan basis
      as
      to amounts advanced by, pledged or assigned to, and reimbursed to any Advance
      Financing Person. The successor Servicer shall be entitled to rely on any such
      information provided by the predecessor Servicer, and the successor Servicer
      shall not be liable for any errors in such information.

     

    (d)  Reimbursement
      amounts distributed with respect to each Mortgage Loan shall be allocated to
      outstanding unreimbursed P&I Advances or Servicing Advances (as the case may
      be) made with respect to that Mortgage Loan on a “first-in, first out” (FIFO)
      basis. The documentation establishing any Advance Facility shall require the
      related Servicer to provide to the related Advance Financing Person or its
      designee loan-by-loan information with respect to each such reimbursement amount
      distributed to such Advance Financing Person or Advance Facility trustee on
      each
      Distribution Date, to enable the Advance Financing Person or Advance Facility
      trustee to make the FIFO allocation of each such reimbursement amount with
      respect to each Mortgage Loan. The related Servicer shall remain entitled to
      be
      reimbursed by the Advance Financing Person or Advance Facility trustee for
      all
      P&I Advances and Servicing Advances funded by the related Servicer to the
      extent the related rights to be reimbursed therefor have not been sold, assigned
      or pledged to an Advance Financing Person.

     

    (e)  Any
      amendment to this Section 3.25 or to any other provision of this Agreement
      that may be necessary or appropriate to effect the terms of an Advance Facility
      as described generally in this Section 3.25, including amendments to add
      provisions relating to a successor Servicer, may be entered into by the Trustee,
      the Depositor and the related Servicer without the consent of any
      Certificateholder, notwithstanding anything to the contrary in this Agreement,
      provided, that the Trustee has been provided an Opinion of Counsel that such
      amendment is authorized hereunder and has no material adverse effect on the
      Certificateholders, 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; provided, further, that the amendment shall not be deemed to adversely
      affect in any material respect the interests of the Certificateholders if the
      Person requesting the amendment obtains a letter from each Rating Agency
      (instead of obtaining an Opinion of Counsel to such effect) 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 rating 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. Prior to entering into an
      Advance Facility, the related Servicer shall notify the lender under such
      facility in writing that: (a) the P&I Advances and/or Servicing Advances
      financed by and/or pledged to the lender are obligations owed to such Servicer
      on a non-recourse basis payable only from the cash flows and proceeds received
      under this Agreement for reimbursement of P&I Advances and/or Servicing
      Advances only to the extent provided herein, and neither the Master Servicer,
      the Securities Administrator, the Trustee nor the Trust are otherwise obligated
      or liable to repay any P&I Advances and/or Servicing Advances financed by
      the lender; (b) such Servicer will be responsible for remitting to the lender
      the applicable amounts collected by it as Servicing Fees and as reimbursement
      for P&I Advances and/or Servicing Advances funded by the lender, as
      applicable, subject to the restrictions and priorities created in this
      Agreement; and (c) neither the Master Servicer, the Securities Administrator
      nor
      the Trustee shall have any responsibility to calculate any amount payable under
      an Advance Facility or to track or monitor the administration of the financing
      arrangement between such Servicer and the lender or the payment of any amount
      under an Advance Facility.

     

    (f)  The
      related Servicer shall indemnify the Master Servicer, the Securities
      Administrator, the Trustee and the Trust Fund for any cost, liability or expense
      relating to the Advance Facility including, without limitation, a claim, pending
      or threatened, by an Advance Financing Person.

     

    SECTION
      3.26  The
      Servicer’s Indemnification Obligation.

     

    Each
      Servicer agrees to indemnify the Trustee, the Master Servicer and the Securities
      Administrator, from, and hold the Trustee, Master Servicer and the Securities
      Administrator harmless against, any loss, liability or expense (including
      reasonable attorney’s fees and expenses) incurred by any such Person by reason
      of such Servicer’s willful misfeasance, bad faith or gross negligence in the
      performance of its duties under this Agreement or by reason of such Servicer’s
      reckless disregard of its obligations and duties under this Agreement. Such
      indemnity shall survive the termination or discharge of this Agreement and
      the
      resignation or removal of the related Servicer, the Trustee, the Master Servicer
      and the Securities Administrator. Any payment hereunder made by the related
      Servicer to any such Person shall be from such Servicer’s own funds, without
      reimbursement from REMIC I therefor.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      IV 

     

    ADMINISTRATION
      AND MASTER SERVICING

    OF
      THE
      MORTGAGE LOANS BY THE MASTER SERVICER

     

    SECTION
      4.01  Master
      Servicer.

     

    The
      Master Servicer shall, from and after the Closing Date, supervise, monitor
      and
      oversee the obligations of Ocwen and Wells Fargo under this Agreement and SPS
      under the Servicing Agreement to service and administer the related Mortgage
      Loans in accordance with the terms of this Agreement and the 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 the Servicers
      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 the Servicers and shall cause the
      Servicers to perform and observe the covenants, obligations and conditions
      to be
      performed or observed by the related Servicer under this Agreement or the
      Servicing Agreement, as applicable. 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 each Servicer’s and Master Servicer’s records, and
      based on such reconciled and corrected information, prepare the statements
      specified in Section 5.03 and any other information and statements required
      to be provided by the Master Servicer hereunder. The Master Servicer shall
      reconcile the results of its Mortgage Loan monitoring with the actual
      remittances of each Servicer to the Distribution Account pursuant to the terms
      hereof based on information provided to the Master Servicer by each Servicer.
      

     

    The
      Trustee shall furnish the Servicers and the Master Servicer with any limited
      powers of attorney in the form set forth on Exhibit D hereto or attached to
      the
      Servicing Agreement, as applicable, and other documents in a form acceptable
      to
      the Trustee, and necessary or appropriate to enable the Servicers and the Master
      Servicer to service and administer the related Mortgage Loans and REO
      Properties. The Trustee shall have no responsibility for any action of the
      Master Servicer or the Servicers pursuant to any such limited power of attorney
      and shall be indemnified by the Master Servicer or the related Servicer, as
      applicable, for any cost, liability or expense incurred by the Trustee in
      connection with such Person’s misuse of any such power of attorney.

     

    The
      Trustee, the Custodians and the Securities Administrator shall provide access
      to
      the records and documentation in possession of the Trustee, the Custodians
      or
      the Securities Administrator 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, the Custodians or the Securities Administrator; provided,
      however, that, unless otherwise required by law, none of the Trustee, the
      Custodians or the Securities Administrator shall be required to provide access
      to such records and documentation if the provision thereof would violate the
      legal right to privacy of any Mortgagor. The Trustee, the Custodians and the
      Securities Administrator shall allow representatives of the above entities
      to
      photocopy any of the records and documentation and shall provide equipment
      for
      that purpose at a charge that covers the Trustee’s, the Custodians’ or the
      Securities Administrator’s actual costs.

     

    The
      Trustee shall execute and deliver to the Servicers or the Master Servicer upon
      request 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 any other Mortgage Loan Document; (iii)
      obtain a deficiency judgment against the Mortgagor; or (iv) enforce any other
      rights or remedies provided by the Mortgage Note or any other Mortgage Loan
      Document or otherwise available at law or equity.

     

    SECTION
      4.02  REMIC-Related
      Covenants.

     

    For
      as
      long as each REMIC shall exist, the Trustee and the Securities Administrator
      shall act in accordance herewith to treat such REMIC as a REMIC, and the Trustee
      and the Securities Administrator shall comply with any directions of the
      Sponsor, the Servicers 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 2.03 of this Agreement, as applicable, accept any contribution to
      any REMIC after the Startup Day without receipt of a Opinion of Counsel stating
      that such contribution will not result in an Adverse REMIC Event as defined
      in
      Section 11.01(f) of this Agreement.

     

    SECTION
      4.03  Monitoring
      of the Servicers.

     

    (a)  The
      Master Servicer shall be responsible for monitoring the compliance by Ocwen
      and
      Wells Fargo with their duties under this Agreement and SPS with its duties
      under
      the Servicing Agreement. In the review of the related Servicer’s activities, the
      Master Servicer may rely upon an officer’s certificate of the related Servicer
      with regard to such Servicer’s compliance with the terms of this Agreement or
      the Servicing Agreement, as applicable. In the event that the Master Servicer,
      in its judgment, determines that a Servicer should be terminated in accordance
      with the terms hereof or the terms of the Servicing Agreement or that a notice
      should be sent pursuant to the terms hereof or the terms of the Servicing
      Agreement with respect to the occurrence of an event that, unless cured, would
      constitute a Servicer Event of Default, or an event of default under the
      Servicing Agreement, the Master Servicer shall notify the related Servicer,
      the
      Sponsor and the Trustee thereof and (i) with respect to Ocwen or SPS, the Master
      Servicer shall issue such notice or take such other action as it deems
      appropriate and (ii) with respect to Wells Fargo, the Trustee shall issue such
      notice or take such other action as it deems appropriate.

     

    (b)  The
      Master Servicer, for the benefit of the Trustee and the Certificateholders,
      shall enforce the obligations of Ocwen under this Agreement and SPS under the
      Servicing Agreement. The Trustee, for the benefit of the Certificateholders,
      shall enforce the obligations of Wells Fargo under this Agreement. In the event
      that Ocwen fails to perform its obligations in accordance with this Agreement
      the Master Servicer shall, subject to this Section and Article VIII, terminate
      the rights and obligations of Ocwen hereunder in accordance with the provisions
      of Article VIII of this Agreement. In the event that Wells Fargo fails to
      perform its obligations in accordance with this Agreement the Trustee shall,
      subject to this Section and Article VIII, terminate the rights and obligations
      of Wells Fargo hereunder in accordance with the provisions of Article VIII
      of
      this Agreement. In the event that SPS fails to perform its obligations in
      accordance with the Servicing Agreement, the Master Servicer shall terminate
      the
      rights and obligations of such Servicer as servicer in accordance with the
      Servicing Agreement. Such enforcement, including, without limitation, the legal
      prosecution of claims 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. Except as set forth below, the Master Servicer
      shall pay the costs of such enforcement at its own expense, provided that the
      Master Servicer and the Trustee shall not be required to prosecute or defend
      any
      legal action except to the extent that the Master Servicer or the Trustee,
      as
      applicable, shall have received reasonable indemnity for its costs and expenses
      in pursuing such action. To the extent that such costs and expenses are not
      indemnified by Ocwen, Wells Fargo or SPS hereunder or under the Servicing
      Agreement, then the Trustee and the Master Servicer shall be indemnified for
      such costs and expenses out of the Trust Fund.

     

    (c)  The
      Master Servicer or, in the case of Wells Fargo, the Trustee, shall be entitled
      to be reimbursed by the related Servicer (or from amounts on deposit in the
      Distribution Account if the related Servicer is unable to fulfill its
      obligations hereunder or under the Servicing Agreement) for all reasonable
      out-of-pocket or third party costs associated with the transfer of servicing
      from the predecessor Servicer (or if the predecessor Servicer is the Master
      Servicer, from the related Servicer immediately preceding the Master Servicer),
      including without limitation, any reasonable out-of-pocket or third party costs
      or expenses associated with the complete transfer of all servicing data and
      the
      completion, correction or manipulation of such servicing data as may be required
      by the Master Servicer or, in the case of Wells Fargo, the Trustee to correct
      any errors or insufficiencies in the servicing data or otherwise to enable
      a
      successor servicer (which may be the Master Servicer except with respect to
      the
      Wells Fargo Mortgage Loans) to service the related Mortgage Loans properly
      and
      effectively, upon presentation of reasonable documentation of such costs and
      expenses.

     

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

     

    (e)  If
      the
      Master Servicer acts as successor to a Servicer, it will not assume liability
      for the representations and warranties of the terminated Servicer. The Master
      Servicer shall not act as a successor to Wells Fargo in its capacity as the
      Servicer of the Wells Fargo Mortgage Loans.

     

    SECTION
      4.04  Fidelity
      Bond.

     

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

     

    SECTION
      4.05  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 XI, 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; provided, however, that the Master Servicer shall
      not (and, consistent with its responsibilities under Section 4.03, shall
      not permit a Servicer) 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 will 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 prepared and delivered to it and reasonably acceptable to it by
      empowering the Master Servicer or the Servicers to execute and deliver
      instruments of satisfaction or cancellation, or of partial or full release
      or
      discharge, and to foreclose upon or otherwise liquidate Mortgaged Property,
      and
      to appeal, prosecute or defend in any court action relating to the Mortgage
      Loans or the Mortgaged Property, in accordance with this Agreement or the
      Servicing Agreement, and the Trustee shall execute and deliver such other
      documents prepared and delivered to it and reasonably acceptable to it, as
      the
      Master Servicer or the related Servicer may request, to enable the Master
      Servicer to master service and administer the related 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 the use or
      misuse of any such powers of attorney or such other executed documents delivered
      by the Trustee pursuant to this paragraph by the Master Servicer or the
      Servicers and shall be indemnified by the Master Servicer or the related
      Servicer, as applicable, for any cost, liability or expense incurred by the
      Trustee in connection with such Person’s use or misuse of any such power of
      attorney or such other executed documents delivered by the Trustee pursuant
      to
      this paragraph). 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 9.10. In the
      performance of its duties hereunder, the Master Servicer shall be an independent
      contractor and shall not, except in those instances where it is taking action
      in
      the name of the Trustee, be deemed to be the agent of the Trustee.

     

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

     

    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
      this Agreement or the Servicing Agreement. If applicable law prohibits the
      enforcement of a due-on-sale clause or such clause is otherwise not enforced
      in
      accordance with this Agreement or the Servicing Agreement and, as a consequence,
      a Mortgage Loan is assumed, the original Mortgagor may be released from
      liability in accordance with this Agreement or the Servicing
      Agreement.

     

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

     

    (a)  The
      Master Servicer shall transmit to the Trustee or the applicable Custodian such
      documents and instruments coming into the possession of the Master Servicer
      from
      time to time as are required by the terms hereof to be delivered to the Trustee
      or the applicable Custodian. Any funds received by the Master Servicer in
      respect of any Mortgage Loan or which otherwise are collected by the Master
      Servicer as Liquidation Proceeds or Insurance Proceeds in respect of any
      Mortgage Loan shall be remitted to the Securities Administrator for deposit
      in
      the Distribution Account. The Master Servicer shall, and, subject to
      Section 3.20 of this Agreement or, to the extent provided therein, the
      Servicing Agreement, shall cause the Servicers 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 remitted to the Securities Administrator for deposit in
      the
      Distribution Account.

     

    SECTION
      4.08  Standard
      Hazard Insurance and Flood Insurance Policies.

     

    For
      each
      Mortgage Loan, the Master Servicer shall enforce the obligation of Ocwen and
      Wells Fargo under this Agreement and SPS under the Servicing Agreement to
      maintain or cause to be maintained standard fire and casualty insurance and,
      where applicable, flood insurance, all in accordance with the provisions of
      this
      Agreement or the Servicing Agreement. It is understood and agreed that such
      insurance shall be with insurers meeting the eligibility requirements set forth
      in Section 3.11 of the Agreement or the eligibility requirements set forth
      in the Servicing Agreement, as applicable, 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.

     

    SECTION
      4.09  Presentment
      of Claims and Collection of Proceeds.

     

    The
      Master Servicer shall enforce each Servicer’s obligations under this Agreement
      or under the Servicing Agreement, as applicable, to prepare and present on
      behalf of the Trustee and the Certificateholders all claims under the insurance
      policies and take such actions (including the negotiation, settlement,
      compromise or enforcement of the insured’s claim) as shall be necessary to
      realize recovery under such policies. Any proceeds disbursed to the Master
      Servicer (or disbursed to the Servicer and remitted to the Master Servicer)
      in
      respect of such policies, bonds or contracts shall be promptly deposited in
      the
      Distribution 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
      4.10  Maintenance
      of Primary Mortgage Insurance Policies.

     

    (a)  The
      Master Servicer shall not take, or permit a Servicer to take (to the extent
      such
      action is prohibited by this Agreement or the Servicing Agreement), any action
      that would result in noncoverage under any primary mortgage insurance policy
      of
      any loss which, but for the actions of the Master Servicer or the related
      Servicer, as applicable, would have been covered thereunder. The Master Servicer
      shall use its best reasonable efforts to cause the Servicers 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 or the Servicing
      Agreement. The Master Servicer shall not, and shall not permit the Servicers
      to,
      cancel or refuse to renew any 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 or the Servicing Agreement.

     

    (b)  The
      Master Servicer agrees to cause the Servicers 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.

     

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

     

    The
      Trustee or the applicable Custodian, as applicable, shall retain possession
      and
      custody of the originals (to the extent available) of any 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 and
      the
      Servicers have otherwise fulfilled their respective obligations under this
      Agreement or the Servicing Agreement, as applicable, the Trustee or the
      applicable Custodian shall also retain possession and custody of each Mortgage
      File in accordance with and subject to the terms and conditions of this
      Agreement and the related Custodial Agreement. The Master Servicer shall
      promptly deliver or cause to be delivered to the Trustee or the applicable
      Custodian, upon the execution or receipt thereof the originals of any primary
      mortgage insurance policies, any certificates of renewal, and such other
      documents or instruments that constitute Mortgage Loan Documents that come
      into
      the possession of the Master Servicer from time to time.

     

    SECTION
      4.12  Realization
      Upon Defaulted Mortgage Loans.

     

    Subject
      to Section 3.13(e) of this Agreement, the Master Servicer shall cause the
      Servicers to foreclose upon, repossess or otherwise comparably convert the
      ownership of Mortgaged Properties securing such of the Mortgage Loans as come
      into and continue in default and as to which no satisfactory arrangements can
      be
      made for collection of delinquent payments, all in accordance with this
      Agreement or the Servicing Agreement, as applicable.

     

    SECTION
      4.13  Compensation
      for the Master Servicer.

     

    As
      compensation for the activities of the Master Servicer hereunder, the Master
      Servicer shall be entitled to the Master Servicing Fee and the income from
      investment of or earnings on the funds from time to time in the Distribution
      Account, as provided in Section 3.10 of this Agreement. The Master
      Servicing Fee payable to the Master Servicer in respect of any Distribution
      Date
      shall be reduced in accordance with Section 4.19 of this Agreement. The
      Master Servicer shall be required to pay all expenses incurred by it in
      connection with its activities hereunder and shall not be entitled to
      reimbursement therefor except as provided in this Agreement.

     

    SECTION
      4.14  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 cause the Servicers to sell, any REO Property as
      expeditiously as possible and in accordance with the provisions of this
      Agreement or the Servicing Agreement, as applicable. Further, the Master
      Servicer shall cause the Servicers to sell any REO Property prior to three
      years
      after the end of the calendar year of its acquisition by REMIC I unless (i)
      the
      Trustee shall have been supplied by the related Servicer with an Opinion of
      Counsel to the effect that the holding by the Trust Fund of such REO 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 related 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. The Master Servicer shall cause
      the
      related Servicer to protect and conserve, such REO Property in the manner and
      to
      the extent required by this Agreement or the Servicing Agreement, as applicable,
      in accordance with the REMIC Provisions and in a manner that does not result
      in
      a tax on “net income from foreclosure property” or cause such REO Property to
      fail to qualify as “foreclosure property” within the meaning of
      Section 860G(a)(8) of the Code.

     

    (b)  The
      Master Servicer shall cause the Servicers to deposit all funds collected and
      received in connection with the operation of any REO Property in the REO Account
      or in the account designated for such amounts under the Servicing
      Agreement.

     

    SECTION
      4.15  Master
      Servicer Annual Statement of Compliance.

     

    (a)  The
      Master Servicer and the Securities Administrator shall deliver (or otherwise
      make available) (and the Master Servicer and Securities Administrator shall
      cause any Additional Servicer or Servicing Function Participant engaged by
      it to
      deliver) to the Depositor and the Securities Administrator, and in the case
      of
      the Master Servicer, to the Trustee, on or before March 15 of each year,
      commencing in March 2007, an Officer’s Certificate stating, as to the signer
      thereof, that (A) a review of such party’s activities during the preceding
      calendar year or portion thereof and of such party’s performance under this
      Agreement, or such other applicable agreement in the case of an Additional
      Servicer or Servicing Function Participant, has been made under such officer’s
      supervision and (B) to the best of such officer’s knowledge, based on such
      review, such party has fulfilled all its obligations under this Agreement,
      or
      such other applicable agreement in the case of an Additional Servicer or
      Servicing Function Participant, in all material respects throughout such year
      or
      portion thereof, or, if there has been a failure to fulfill any such obligation
      in any material respect, specifying each such failure known to such officer
      and
      the nature and status thereof.

     

    (b)  The
      Master Servicer shall include all annual statements of compliance received
      by it
      from the Servicers with its own annual statement of compliance to be submitted
      to the Securities Administrator pursuant to this Section.

     

    (c)  In
      the
      event the Master Servicer, the Securities Administrator or any Servicing
      Function Participant engaged by such parties is terminated, assigns its rights
      and obligations under, or resigns pursuant to the terms of this Agreement,
      or
      any applicable agreement in the case of a Servicing Function Participant, as
      the
      case may be, such party shall provide an Officer’s Certificate pursuant to this
      Section 4.15(c) or to such applicable agreement, as the case may be,
      notwithstanding any such termination, assignment or resignation.

     

    (d)  Failure
      of the Master Servicer to comply timely with this Section 4.15 shall be deemed
      a
      Master Servicer Event of Default, automatically, without notice and without
      any
      cure period, and the Trustee may, in addition to whatever rights the Trustee
      may
      have under this Agreement and at law or in equity or to damages, including
      injunctive relief and specific performance, terminate all the rights and
      obligations of the Master Servicer under this Agreement and in and to the
      Mortgage Loans and the proceeds thereof without compensating the Master Servicer
      for the same. This paragraph shall supersede any other provision in this
      Agreement or any other agreement to the contrary.

     

    (e)  Copies
      of
      such Master Servicer annual statements of compliance 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 with
      such statement or (ii) the Trustee shall be unaware of the Master Servicer’s
      failure to provide such statement).

     

    SECTION
      4.16  Master
      Servicer Assessments of Compliance.

     

    (a)  By
      March
      15 of each year, commencing in March 2007, the Master Servicer and the
      Securities Administrator, each at its own expense, shall furnish, or otherwise
      make available, and each such party shall cause any Servicing Function
      Participant engaged by it to furnish, each at its own expense, to the Securities
      Administrator and the Depositor, a report on an assessment of compliance with
      the Relevant Servicing Criteria that contains (A) a statement by such party
      of
      its responsibility for assessing compliance with the Relevant Servicing
      Criteria, (B) a statement that such party used the Relevant Servicing Criteria
      to assess compliance with the Relevant Servicing Criteria, (C) such party’s
      assessment of compliance with the Relevant Servicing Criteria as of and for
      the
      fiscal year covered by the Form 10-K required to be filed pursuant to Section
      5.06(d), including, if there has been any material instance of noncompliance
      with the Relevant Servicing Criteria, a discussion of each such failure and
      the
      nature and status thereof, and (D) a statement that a registered public
      accounting firm has issued an attestation report on such party’s assessment of
      compliance with the Relevant Servicing Criteria as of and for such
      period.

     

    (b)  No
      later
      than the end of each fiscal year for the Trust for which a Form 10-K is required
      to be filed, the Master Servicer shall forward to the Securities Administrator
      and the Depositor the name of each Servicing Function Participant engaged by
      it
      and what Relevant Servicing Criteria will be addressed in the report on
      assessment of compliance prepared by such Servicing Function Participant
      (provided,
      however,
      that
      the Master Servicer need not provide such information to the Securities
      Administrator so long as the Master Servicer and the Securities Adminsitrator
      are the same Person). When the Master Servicer and the Securities Administrator
      (or any Servicing Function Participant engaged by them) submit their assessments
      to the Securities Administrator, such parties will also at such time include
      the
      assessment (and attestation pursuant to Section 4.17) of each Servicing Function
      Participant engaged by it. 

     

    (c)  Promptly
      after receipt of each such report on assessment of compliance, (i) the Depositor
      shall review each such report and, if applicable, consult with the Master
      Servicer, the Securities Administrator and any Servicing Function Participant
      engaged by such parties as to the nature of any material instance of
      noncompliance with the Relevant Servicing Criteria by each such party, and
      (ii)
      the Securities Administrator shall confirm that the assessments, taken as a
      whole, address all of the Servicing Criteria and taken individually address
      the
      Relevant Servicing Criteria for each party as set forth on Exhibit E and on
      any
      similar exhibit set forth in each servicing agreement in respect of the Servicer
      and notify the Depositor of any exceptions. 

     

    (d)  The
      Master Servicer shall include all annual reports on assessment of compliance
      received by it from the Servicers with its own assessment of compliance to
      be
      submitted to the Securities Administrator pursuant to this Section.

     

    (e)  In
      the
      event the Master Servicer, the Securities Administrator or any Servicing
      Function Participant engaged by the parties is terminated, assigns its rights
      and obligations under, or resigns pursuant to the terms of this Agreement,
      or
      any other applicable agreement, as the case may be, such party shall provide
      a
      report on assessment of compliance pursuant to this Section 4.16 or to such
      other applicable agreement, notwithstanding any such termination, assignment
      or
      resignation.

     

    (f)  Failure
      of the Master Servicer to comply timely with this Section 4.16 shall be deemed
      a
      Master Servicer Event of Default, automatically, without notice and without
      any
      cure period, and the Trustee may, in addition to whatever rights the Trustee
      may
      have under this Agreement and at law or in equity or to damages, including
      injunctive relief and specific performance, terminate all the rights and
      obligations of the Master Servicer under this Agreement and in and to the
      Mortgage Loans and the proceeds thereof without compensating the Master Servicer
      for the same. This paragraph shall supersede any other provision in this
      Agreement or any other agreement to the contrary.

     

    (g)  Delivery
      under this Section 4.16 of such reports, information and documents to the
      Trustee is for informational purposes only, and the Trustee’s receipt of such
      shall not constitute constructive notice of any information contained therein
      or
      determinable from information contained therein, including the Master Servicer’s
      compliance with any of its covenants hereunder (as to which the Trustee is
      entitled to conclusively rely exclusively on an Officer’s
      Certificate).

     

    SECTION
      4.17  Master
      Servicer Attestation Reports.

     

    (a)  By
      March
      15 of each year, commencing in March 2007, the Master Servicer and the
      Securities Administrator, each at its own expense, shall cause, and each such
      party shall cause any Servicing Function Participant engaged by it to cause,
      each at its own expense, a registered public accounting firm (which may also
      render other services to the Master Servicer, the Securities Administrator,
      or
      such other Servicing Function Participants, as the case may be) and that is
      a
      member of the American Institute of Certified Public Accountants to furnish
      an
      attestation report to the Securities Administrator and the Depositor, to the
      effect that (i) it has obtained a representation regarding certain matters
      from
      the management of such party, which includes an assertion that such party has
      complied with the Relevant Servicing Criteria, and (ii) on the basis of an
      examination conducted by such firm in accordance with standards for attestation
      engagements issued or adopted by the PCAOB, it is expressing an opinion as
      to
      whether such party’s compliance with the Relevant Servicing Criteria was fairly
      stated in all material respects, or it cannot express an overall opinion
      regarding such party’s assessment of compliance with the Relevant Servicing
      Criteria. In the event that an overall opinion cannot be expressed, such
      registered public accounting firm shall state in such report why it was unable
      to express such an opinion. Such report must be available for general use and
      not contain restricted use language. 

     

    (b)  Promptly
      after receipt of each such assessment of compliance and attestation report
      from
      the Master Servicer, the Securities Administrator or any Servicing Function
      Participant engaged by such parties, the Securities Administrator shall confirm
      that each assessment submitted pursuant to Section 4.16 is coupled with an
      attestation meeting the requirements of this Section and notify the Depositor
      of
      any exceptions.

     

    (c)  The
      Master Servicer shall include each such attestation received by it from the
      Servicers with its own attestation to be submitted to the Securities
      Administrator pursuant to this Section.

     

    (d)  In
      the
      event the Master Servicer, the Securities Administrator or any Servicing
      Function Participant engaged by the parties is terminated assigns its rights
      and
      under, or resigns pursuant to the terms of this Agreement, or any applicable
      agreement in the case of a Servicing Function Participant, as the case may
      be,
      such party shall cause a registered public accounting firm to provide an
      attestation pursuant to this Section 4.17, or such other applicable agreement,
      notwithstanding any such termination, assignment or resignation.

     

    (e)  Failure
      of the Master Servicer to comply timely with this Section 4.17 shall be deemed
      a
      Master Servicer Event of Default, automatically, without notice and without
      any
      cure period, and the Trustee may, in addition to whatever rights the Trustee
      may
      have under this Agreement and at law or in equity or to damages, including
      injunctive relief and specific performance, terminate all the rights and
      obligations of the Master Servicer under this Agreement and in and to the
      Mortgage Loans and the proceeds thereof without compensating the Master Servicer
      for the same. This paragraph shall supersede any other provision in this
      Agreement or any other agreement to the contrary.

     

    SECTION
      4.18  Annual
      Certification.

     

    Each
      Form
      10-K required to be filed for the Trust pursuant to Section 5.06 shall include
      a
      certification (the “Sarbanes-Oxley Certification”) required to be included
      therewith pursuant to the Sarbanes-Oxley Act. Each of the Master Servicer and
      the Securities Administrator shall provide, and shall cause any Servicing
      Function Participant engaged by it to, provide to the Person who signs the
      Sarbanes-Oxley Certification (the “Certifying Person”), by March 15 of each year
      in which the Trust is subject to the reporting requirements of the Exchange
      Act
      and otherwise within a reasonable period of time upon request, a certification
      (each, a “Back-Up Certification”), in the form attached hereto as Exhibit C,
      upon which the Certifying Person, the entity for which the Certifying Person
      acts as an officer, and such entity’s officers, directors and Affiliates
      (collectively with the Certifying Person, “Certification Parties”) can
      reasonably rely. The senior officer of the Master Servicer in charge of the
      master servicing function shall serve as the Certifying Person on behalf of
      the
      Trust. Such officer of the Certifying Person can be contacted by e-mail at
      cts.sec.notifications@wellsfargo.com or by facsimile at 410-715-2380. In the
      event the Master Servicer, the Securities Administrator or any Servicing
      Function Participant engaged by such parties is terminated, assigns its rights
      or duties under, or resigns pursuant to the terms of this Agreement, or any
      applicable Sub-Servicing Agreement, as the case may be, such party shall provide
      a Back-Up Certification to the Certifying Person pursuant to this Section 4.18
      with respect to the period of time it was subject to this Agreement or any
      applicable Sub-Servicing Agreement, as the case may be. Notwithstanding the
      foregoing, (i) the Master Servicer and the Securities Administrator shall not
      be
      required to deliver a Back-Up Certification to each other if both are the same
      Person and the Master Servicer is the Certifying Person and (ii) the Master
      Servicer shall not be obligated to sign the Sarbanes-Oxley Certification in
      the
      event that it does not receive any Back-Up Certification required to be
      furnished to it pursuant to this section or any servicing
      agreement.

     

    SECTION
      4.19  Obligation
      of the Master Servicer in Respect of Prepayment Interest
      Shortfalls.

     

    In
      the
      event of any Prepayment Interest Shortfalls, the Master Servicer shall deposit
      into the Distribution Account not later than the related Distribution Date
      an
      amount equal to the lesser of (i) the aggregate amounts required to be paid
      by
      the Servicers with respect to Prepayment Interest Shortfalls attributable to
      Principal Prepayments in full on the Mortgage Loans for the related Distribution
      Date, and not so paid by the Servicers and (ii) the aggregate amount of the
      related Master Servicing Fees for such Distribution Date, without reimbursement
      therefor.

     

    SECTION
      4.20  Prepayment
      Penalty Verification.

     

    On
      or
      prior to each Servicer Remittance Date, each Servicer shall provide, in an
      electronic format mutually acceptable to the Servicer and the Master Servicer,
      the data necessary for the Master Servicer to perform its verification duties
      set forth in this Section 4.20. The Master Servicer or a third party
      reasonably acceptable to the Master Servicer and the Depositor (the
“Verification Agent”) will perform such verification duties and will use its
      best efforts to issue its findings in a report (the “Verification Report”)
      delivered to the Master Servicer and the Depositor within ten (10) Business
      Days
      following the related Distribution Date; provided, however, that if the
      Verification Agent is unable to issue the Verification Report within ten (10)
      Business Days following the Distribution Date, the Verification Agent may issue
      and deliver to the Master Servicer and the Depositor the Verification Report
      upon the completion of its verification duties. The Master Servicer shall
      forward the Verification Report to the related Servicer and shall notify such
      Servicer if the Master Servicer has determined that such Servicer did not
      deliver the appropriate Prepayment Charge to the Securities Administrator in
      accordance with this Agreement. Such written notification from the Master
      Servicer shall include the loan number, prepayment penalty code and prepayment
      penalty amount as calculated by the Master Servicer or the Verification Agent,
      as applicable, of each Mortgage Loan for which there is a discrepancy. If the
      related Servicer agrees with the verified amounts, such Servicer shall adjust
      the immediately succeeding Servicer Report and the amount remitted to the
      Securities Administrator with respect to prepayments accordingly. If the related
      Servicer disagrees with the determination of the Master Servicer, such Servicer
      shall, within fifteen (15) Business Days of its receipt of the Verification
      Report, notify the Master Servicer of such disagreement and provide the Master
      Servicer with detailed information to support its position. The related Servicer
      and the Master Servicer shall cooperate to resolve any discrepancy on or prior
      to the immediately succeeding Servicer Remittance Date, and such Servicer will
      indicate the effect of such resolution on the related Servicer Report and shall
      adjust the amount remitted with respect to prepayments on such Servicer
      Remittance Date accordingly.

     

    During
      such time as the related Servicer and the Master Servicer are resolving
      discrepancies with respect to the Prepayment Charges, no payments in respect
      of
      any disputed Prepayment Charges will be remitted to the Securities Administrator
      for deposit in the Distribution Account and the Master Servicer shall not be
      obligated to deposit such payments, unless otherwise required pursuant to
      Section 8.01 hereof. In connection with such duties, the Master Servicer
      shall be able to rely solely on the information provided to it by the related
      Servicer in accordance with this Section. The Master Servicer shall not be
      responsible for verifying the accuracy of any of the information provided to
      it
      by the related Servicer.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      V  

    PAYMENTS
      TO CERTIFICATEHOLDERS

     

    SECTION
      5.01  Distributions.

     

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

     

    (i)  to
      Holders of REMIC I Regular Interest I-LTAA, REMIC I Regular Interest I-LTA,
      REMIC I Regular Interest I-LTM1, REMIC I Regular Interest I-LTM2, REMIC I
      Regular Interest I-LTM3, REMIC I Regular Interest I-LTM4, REMIC I Regular
      Interest I-LTM5, REMIC I Regular Interest I-LTZZ, REMIC I Regular Interest
      I-LTCE2 and REMIC I Regular Interest I-LTP, pro
      rata,
      in an
      amount equal to (A) the Uncertificated Interest for such Distribution Date,
      plus
      (B) any amounts in respect thereof remaining unpaid from previous Distribution
      Dates. Amounts payable as Uncertificated Interest in respect of REMIC I Regular
      Interest I-LTZZ shall be reduced when the REMIC I Overcollateralization Amount
      is less than the REMIC I Required Overcollateralization Amount, by the lesser
      of
      (x) the amount of such difference and (y) the Maximum I-LTZZ Uncertificated
      Interest Deferral Amount and such amount will be payable to the Holders of
      REMIC
      I Regular Interest I-LTA, REMIC I Regular Interest I-LTM1, REMIC I Regular
      Interest I-LTM2, REMIC I Regular Interest I-LTM3, REMIC I Regular Interest
      I-LTM4 and REMIC I Regular Interest I-LTM5, in the same proportion as the
      Overcollateralization Increase Amount is allocated to the Corresponding
      Certificates and the Uncertificated Balance of REMIC I Regular Interest I-LTZZ
      shall be increased by such amount;

     

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

     

    (A) 98.00%
      of
      such remainder to the Holders of REMIC I Regular Interest I-LTAA, until the
      Uncertificated Balance of such Uncertificated REMIC I Regular Interest is
      reduced to zero;

     

    (B) 2.00%
      of
      such remainder first to the Holders of REMIC I Regular Interest I-LTA, REMIC
      I
      Regular Interest I-LTM1, REMIC I Regular Interest I-LTM2, REMIC I Regular
      Interest I-LTM3, REMIC I Regular Interest I-LTM4 and REMIC I Regular Interest
      I-LTM5, 1.00% of and in the same proportion as principal payments are allocated
      to the Corresponding Certificates, until the Uncertificated Balances of such
      REMIC I Regular Interests are reduced to zero and second to the Holders of
      REMIC
      I Regular Interest I-LTZZ, until the Uncertificated Balance of such REMIC I
      Regular Interest is reduced to zero;

     

    (C) to
      the
      Holders of REMIC I Regular Interest I-LTP, (1) on each Distribution Date, 100%
      of the amount paid in respect of Prepayment Charges and (2) on the Distribution
      Date immediately following the expiration of the latest Prepayment Charge as
      identified on the Prepayment Charge Schedule or any Distribution Date thereafter
      until $100 has been distributed pursuant to this clause; then

     

    (D) any
      remaining amount to the Holders of the Class R-I Interest, in respect of the
      Class R-I Interest;

     

    provided,
      however, that 98.00% and 2.00% of any principal payments that are attributable
      to an Overcollateralization Reduction Amount shall be allocated to Holders
      of
      REMIC I Regular Interest I-LTAA and REMIC I Regular Interest I-LTZZ,
      respectively.

     

    Notwithstanding
      the distributions described in Section 5.01(a)(1), distributions of funds shall
      be made to Certificateholders only in accordance with Section 5.01(a)(2) through
      (5) and Section 5.01(b).

     

    (2) On
      each
      Distribution Date, the Securities Administrator shall withdraw from the
      Distribution Account to the extent on deposit therein an amount equal to the
      Interest Remittance Amount and make the following disbursements and transfers
      in
      the order of priority described below, in each case to the extent of the
      Interest Remittance Amount remaining for such Distribution Date:

     

    first,
      to the
      Holders of the Class A Certificates, the Senior Interest Distribution Amount
      allocable to such Class;

     

    second,
      sequentially, to the Holders of the Class M-1, Class M-2, Class M-3, Class
      M-4
      and Class M-5 Certificates, in that order, the Interest Distribution Amount
      allocable to each such Class; and

     

    third,
      the
      portion, if any, of the Interest Remittance Amount remaining after application
      pursuant to clauses first
      and
second
      above,
      will be applied as part of the Net Monthly Excess Cashflow for such Distribution
      Date, as described in Section 5.01(a)(5) below.

     

    (3) On
      each
      Distribution Date (a) prior to the Stepdown Date or (b) on which a Trigger
      Event
      is in effect, the Securities Administrator shall withdraw from the Distribution
      Account to the extent on deposit therein an amount equal to the Principal
      Distribution Amount and distribute to the Certificateholders the following
      amounts, in the following order of priority:

     

    first,
      to the
      Holders of the Class A Certificates, until the Certificate Principal Balance
      of
      the Class A Certificates has been reduced to zero; and

     

    second,
      sequentially, to the Holders of the Class M-1, Class M-2, Class M-3, Class
      M-4
      and Class M-5 Certificates, in that order, until the Certificate Principal
      Balance of each such Class has been reduced to zero.

     

    (4) On
      each
      Distribution Date (a) on or after the Stepdown Date and (b) on which a Trigger
      Event is not in effect, the Securities Administrator shall withdraw from the
      Distribution Account to the extent on deposit therein an amount equal to the
      Principal Distribution Amount and distribute to the Certificateholders the
      following amounts, in the following order of priority:

     

    first,
      to the
      Holders of the Class A Certificates, the Class A Principal Distribution Amount,
      until the Certificate Principal Balance of the Class A Certificates has been
      reduced to zero;

     

    second,
      to the
      Holders of the Class M-1 Certificates, the lesser of (x) the excess of (i)
      the
      Principal Distribution Amount over (ii) the amount distributed to the Holders
      of
      the Class A Certificates under clause first
      above,
      and (y) the Class M-1 Principal Distribution Amount, until the Certificate
      Principal Balance of the Class M-1 Certificates has been reduced to
      zero;

     

    third,
      to the
      Holders of the Class M-2 Certificates, the lesser of (x) the excess of (i)
      the
      Principal Distribution Amount over (ii) the sum of the amounts distributed
      to
      the Holders of the Class A Certificates under clause first
      above
      and to the Holders of the Class M-1 Certificates under clause second
      above,
      and (y) the Class M-2 Principal Distribution Amount, until the Certificate
      Principal Balance of the Class M-2 Certificates has been reduced to
      zero;

     

    fourth,
      to the
      Holders of the Class M-3 Certificates, the lesser of (x) the excess of (i)
      the
      Principal Distribution Amount over (ii) the sum of the amounts distributed
      to
      the Holders of the Class A Certificates under clause first
      above,
      to the Holders of the Class M-1 Certificates under clause second
      above
      and to the Holders of the Class M-2 Certificates under clause third
      above,
      and (y) the Class M-3 Principal Distribution Amount, until the Certificate
      Principal Balance of the Class M-3 Certificates has been reduced to
      zero;

     

    fifth,
      to the
      Holders of the Class M-4 Certificates, the lesser of (x) the excess of (i)
      the
      Principal Distribution Amount over (ii) the sum of the amounts distributed
      to
      the Holders of the Class A Certificates under clause first
      above,
      to the Holders of the Class M-1 Certificates under clause second
      above,
      to the Holders of the Class M-2 Certificates under clause third
      above
      and to the Holders of the Class M-3 Certificates under clause fourth
      above
      and (y) the Class M-4 Principal Distribution Amount, until the Certificate
      Principal Balance of the Class M-4 Certificates has been reduced to
      zero;

     

    sixth,
      to the
      Holders of the Class M-5 Certificates, the lesser of (x) the excess of (i)
      the
      Principal Distribution Amount over (ii) the sum of the amounts distributed
      to
      the Holders of the Class A Certificates under clause first
      above,
      to the Holders of the Class M-1 Certificates under clause second
      above,
      to the Holders of the Class M-2 Certificates under clause third
      above,
      to the Holders of the Class M-3 Certificates under clause fourth
      above
      and to the Holders of the Class M-4 Certificates under clause fifth
      above
      and (y) the Class M-5 Principal Distribution Amount, until the Certificate
      Principal Balance of the Class M-5 Certificates has been reduced to zero; and
      

     

    seventh,
      the
      portion, if any, of the Principal Distribution Amount remaining after
      application pursuant to clauses first
      through
sixth
      above,
      will be applied as part of the Net Monthly Excess Cashflow for such Distribution
      Date, as described in Section 5.01(a)(5) below.

     

    (5) On
      each
      Distribution Date, the Net Monthly Excess Cashflow (or, in the case of clause
      first
      below,
      the Net Monthly Excess Cashflow exclusive of any Overcollateralization Reduction
      Amount) shall be distributed as follows:

     

    first,
      to the
      Holders of the Class or Classes of Certificates then entitled to receive
      distributions in respect of principal, in an amount equal to the
      Overcollateralization Increase Amount for such Distribution Date, which shall
      be
      included in the Principal Distribution Amount and paid in accordance with the
      priorities set forth in Section 5.01(a)(3) and Section 5.01(a)(4)
      above;

     

    second,
      sequentially, to the Holders of the Class M-1, Class M-2, Class M-3, Class
      M-4
      and Class M-5 Certificates, in that order, in an amount equal to the Interest
      Carry Forward Amount allocable to each such Class;

     

    third,
      sequentially, to the Holders of the Class M-1, Class M-2, Class M-3, Class
      M-4
      and Class M-5 Certificates, in that order, in an amount equal to the Allocated
      Realized Loss Amount allocable to each such Class;

     

    fourth,
      concurrently, to the Holders of the Class A Certificates, in an amount equal
      to
      such Certificates’ allocated share of any Prepayment Interest Shortfalls on the
      Mortgage Loans to the extent not covered by payments pursuant to
      Section 3.22 or 4.19 of this Agreement or pursuant to the Servicing
      Agreement and any shortfalls resulting from the application of the Relief Act
      or
      similar state or local law or the bankruptcy code with respect to the Mortgage
      Loans to the extent not previously reimbursed pursuant to Section 1.02 of
      this Agreement;

     

    fifth,
      sequentially, to the Holders of the Class M-1, Class M-2, Class M-3, Class
      M-4
      and Class M-5 Certificates, in an amount equal to each such Certificates’
allocated share of any Prepayment Interest Shortfalls on the Mortgage Loans
      to
      the extent not covered by payments pursuant to Section 3.22 or 4.19 of this
      Agreement or pursuant to the Servicing Agreement and any shortfalls resulting
      from the application of the Relief Act or similar state or local law or the
      bankruptcy code with respect to the Mortgage Loans to the extent not previously
      reimbursed pursuant to Section 1.02 of this Agreement;

     

    sixth,
      to the
      Reserve Fund, the amount by which the Net WAC Rate Carryover Amounts, if any,
      with respect to the Offered Certificates exceeds the amount in the Reserve
      Fund
      that was not distributed on prior Distribution Dates;

     

    seventh,
      to the
      Holders of the Class CE-1 Certificates the sum of (a) the Interest Distribution
      Amount and (b) any Overcollateralization Reduction Amount, in each case, for
      such Distribution Date; and

     

    eighth,
      to the
      Holders of the Class R Certificates, in respect of the Class R-II Interest,
      any
      remaining amounts; provided that if such Distribution Date is the Distribution
      Date immediately following the expiration of the latest Prepayment Charge term
      as identified on the Mortgage Loan Schedule or any Distribution Date thereafter,
      then any such remaining amounts will be distributed first, to the Holders of
      the
      Class P Certificates, until the Certificate Principal Balance thereof has been
      reduced to zero; and second, to the Holders of the Class R
      Certificates.

     

    The
      Class
      CE-1 Certificates are intended to receive all principal and interest received
      by
      the Trust on the Mortgage Loans that is not otherwise distributable to any
      other
      Class of Regular Certificates or REMIC Regular Interests. If the Securities
      Administrator determines that the Residual Certificates are entitled to any
      distributions on any Distribution Date other than the final Distribution Date,
      the Securities Administrator, prior to any such distribution to any Residual
      Certificate, shall notify the Depositor of such impending distribution. Upon
      such notification, the Depositor will prepare and request that the other parties
      hereto enter into an amendment to this Agreement pursuant to Section 12.01,
      to revise such mistake in the distribution provisions. The consent of the Holder
      of the Class R Certificate is not required in connection with any such
      amendment,

     

    On
      each
      Distribution Date, after making the distributions of the Available Distribution
      Amount as set forth above, the Securities Administrator will first, withdraw
      from the Reserve Fund all income from the investment of funds in the Reserve
      Fund and distribute such amount to the Holders of the Class CE-1 Certificates,
      and second, withdraw from the Reserve Fund, to the extent of amounts remaining
      on deposit therein, the amount of any Net WAC Rate Carryover Amount for such
      Distribution Date and distribute such amount first, concurrently to the Class
      A
      Certificates, on a pro
      rata
      basis;
      second, to the Class M-1 Certificates, third, to the Class M-2 Certificates,
      fourth, to the Class M-3 Certificates, fifth, to the Class M-4 Certificates
      and
      sixth, to the Class M-5 Certificates, in each case to the extent any Net WAC
      Rate Carryover Amount is allocable to each such Class.

     

    (b)  On
      each
      Distribution Date, for so long as Ocwen is the Servicer of the Ocwen Mortgage
      Loans, Wells Fargo is the Servicer of the Wells Fargo Mortgage Loans or SPS
      is
      the servicer of the SPS Mortgage Loans, the Securities Administrator shall
      distribute to the Holders of the Class CE-2 Certificates, with respect to each
      such Mortgage Loan, one-twelfth of the product of (i) the excess of the
      Servicing Fee Rate over the Ocwen Servicing Fee Rate, the Wells Fargo Servicing
      Fee Rate and the SPS Servicing Fee Rate, as applicable, if any, multiplied
      by
      (ii) the Scheduled Principal Balance of the related Mortgage Loan as of the
      Due
      Date in the preceding calendar month (the “Excess Servicing Fee”). On each
      Distribution Date, the Securities Administrator shall withdraw any amounts
      then
      on deposit in the Distribution Account that represent Prepayment Charges and
      shall distribute such amounts to the Class P Certificateholders as described
      above.

     

    (c)  All
      distributions made with respect to each Class of Certificates on each
      Distribution Date shall be allocated pro rata among the outstanding Certificates
      in such Class based on their respective Percentage Interests. Payments in
      respect of each Class of Certificates on each Distribution Date will be made
      to
      the Holders of the respective Class of record on the related Record Date (except
      as otherwise provided in Section 5.01(e) or Section 10.01 of this
      Agreement respecting the final distribution on such Class), based on the
      aggregate Percentage Interest represented by their respective Certificates,
      and
      shall be made by wire transfer of immediately available funds to the account
      of
      any such Holder at a bank or other entity having appropriate facilities
      therefor, if such Holder shall have so notified the Securities Administrator
      in
      writing at least five Business Days prior to the Record Date immediately prior
      to such Distribution Date and is the registered owner of Certificates having
      an
      initial aggregate Certificate Principal Balance that is in excess of the lesser
      of (i) $5,000,000 or (ii) two-thirds of the initial Certificate Principal
      Balance of such Class of Certificates, or otherwise by check mailed by first
      class mail to the address of such Holder 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
      of the Securities Administrator or such other location specified in the notice
      to Certificateholders of such final distribution.

     

    Each
      distribution with respect to a Book-Entry Certificate shall be paid to the
      Depository, as Holder thereof, and the Depository shall be responsible for
      crediting the amount of such distribution to the accounts of its Depository
      Participants in accordance with its normal procedures. Each Depository
      Participant shall be responsible for disbursing such distribution to the
      Certificate Owners that it represents and to each indirect participating
      brokerage firm (a “brokerage firm” or “indirect participating firm”) for which
      it acts as agent. Each brokerage firm shall be responsible for disbursing funds
      to the Certificate Owners that it represents. None of the Trustee, the
      Depositor, the Servicers, the Securities Administrator or the Master Servicer
      shall have any responsibility therefor except as otherwise provided by this
      Agreement or applicable law.

     

    (d)  The
      rights of the Certificateholders to receive distributions in respect of the
      Certificates, and all interests of the Certificateholders in such distributions,
      shall be as set forth in this Agreement. None of the Holders of any Class of
      Certificates, the Trustee, the Servicers, the Securities Administrator or the
      Master Servicer shall in any way be responsible or liable to the Holders of
      any
      other Class of Certificates in respect of amounts properly previously
      distributed on the Certificates.

     

    (e)  Except
      as
      otherwise provided in Section 10.01 of this Agreement, whenever the
      Securities Administrator expects that the final distribution with respect to
      any
      Class of Certificates will be made on the next Distribution Date, the Securities
      Administrator shall, no later than three (3) days before the related
      Distribution Date, mail to each Holder on such date of such Class of
      Certificates a notice to the effect that:

     

    (i)  the
      Securities Administrator expects that the final distribution with respect to
      such Class of Certificates will be made on such Distribution Date but only
      upon
      presentation and surrender of such Certificates at the office of the Securities
      Administrator therein specified, and

     

    (ii)  no
      interest shall accrue on such Certificates from and after the end of the related
      Interest Accrual Period.

     

    Any
      funds
      not distributed to any Holder or Holders of Certificates of such Class on such
      Distribution Date because of the failure of such Holder or Holders to tender
      their Certificates shall, on such date, be set aside and held in trust by the
      Securities Administrator and credited to the account of the appropriate
      non-tendering Holder or Holders. If any Certificates as to which notice has
      been
      given pursuant to this Section 5.01(e) shall not have been surrendered for
      cancellation within six months after the time specified in such notice, the
      Securities Administrator shall mail a second notice to the remaining
      non-tendering Certificateholders to surrender their Certificates for
      cancellation in order to receive the final distribution with respect thereto.
      If
      within one year after the second notice all such Certificates shall not have
      been surrendered for cancellation, the Securities Administrator shall, directly
      or through an agent, mail a final notice to the remaining non-tendering
      Certificateholders concerning surrender of their Certificates but shall continue
      to hold any remaining funds for the benefit of non-tendering Certificateholders.
      The costs and expenses of maintaining the funds in trust and of contacting
      such
      Certificateholders shall be paid out of the assets remaining in such trust
      fund.
      If within one year after the final notice any such Certificates shall not have
      been surrendered for cancellation, the Securities Administrator shall pay to
      the
      Depositor all such amounts, and all rights of non-tendering Certificateholders
      in or to such amounts shall thereupon cease. No interest shall accrue or be
      payable to any Certificateholder on any amount held in trust by the Securities
      Administrator as a result of such Certificateholder’s failure to surrender its
      Certificate(s) on the final Distribution Date for final payment thereof in
      accordance with this Section 5.01(e). Any such amounts held in trust by the
      Securities Administrator shall be held uninvested in an Eligible
      Account.

     

    (f)  Notwithstanding
      anything to the contrary herein, (i) in no event shall the Certificate Principal
      Balance of a Class A Certificate or a Mezzanine Certificate be reduced more
      than
      once in respect of any particular amount both (a) allocated to such Certificate
      in respect of Realized Losses pursuant to Section 5.04 of this Agreement
      and (b) distributed to the Holder of such Certificate in reduction of the
      Certificate Principal Balance thereof pursuant to this Section 5.01 from
      Net Monthly Excess Cashflow and (ii) in no event shall the Uncertificated
      Balance of a REMIC Regular Interest be reduced more than once in respect of
      any
      particular amount both (a) allocated to such REMIC Regular Interest in respect
      of Realized Losses pursuant to Section 5.04 of this Agreement and (b)
      distributed on such REMIC Regular Interest in reduction of the Uncertificated
      Balance thereof pursuant to this Section 5.01.

     

    SECTION
      5.02  Statements
      to Certificateholders.

     

    On
      each
      Distribution Date, the Securities Administrator (based on the information set
      forth in the Servicer Reports for such Distribution Date and information
      provided by the Master Servicer) shall make available to each Holder of the
      Certificates and each Servicer, a statement as to the distributions made on
      such
      Distribution Date setting forth:

     

    (i)  the
      amount of the distribution made on such Distribution Date to the Holders of
      the
      Certificates of each Class allocable to principal, and the amount of the
      distribution made on such Distribution Date to the Holders of the Class P
      Certificates allocable to Prepayment Charges;

     

    (ii)  the
      amount of the distribution made on such Distribution Date to the Holders of
      the
      Certificates of each Class allocable to interest;

     

    (iii)  the
      aggregate Servicing Fee received by the Servicers and Master Servicing Fee
      received by the Master Servicer during the related Due Period;

     

    (iv)  applicable
      Interest Accrual Periods and general Distribution Dates;

     

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

     

    (vi)  the
      amount, if any, of other fees or expenses accrued and paid, with an
      identification of the payee and the general purpose of such fees; 

     

    (vii)  the
      amount of the related distribution to Holders of the Certificates (by class)
      allocable to principal, separately identifying (A) the aggregate amount of
      any
      Principal Prepayments included therein, (B) the aggregate of all scheduled
      payments of principal included therein and (C) any Overcollateralization
      Increase Amount included therein;

     

    (viii)  the
      Interest Carry Forward Amounts and any Net WAC Rate Carryover Amounts for the
      related Certificates (if any);

     

    (ix)  the
      aggregate amount of P&I Advances included in the distributions on the
      Distribution Date (including the general purpose of such P&I
      Advances);

     

    (x)  the
      number and aggregate principal balance of any Mortgage Loans (not including
      any
      Liquidated Mortgage Loans as of the end of the Prepayment Period) that were
      (A)
      delinquent (exclusive of Mortgage Loans in foreclosure) using the “OTS” method
      (1) one scheduled payment is delinquent, (2) two scheduled payments are
      delinquent, (3) three scheduled payments are delinquent and (4) foreclosure
      proceedings have been commenced, and loss information for the
      period;

     

    (xi)  the
      number, aggregate principal balance, weighted average remaining term to maturity
      and weighted average Mortgage Rate of the Mortgage Loans as of the related
      Due
      Date;

     

    (xii)  with
      respect to any Mortgage Loan that was liquidated during the preceding calendar
      month, the loan number and Scheduled Principal Balance of, and Realized Loss
      on,
      such Mortgage Loan as of the end of the related Prepayment Period;

     

    (xiii)  the
      total
      number and principal balance of any real estate owned, or REO Properties, as
      of
      the end of the related Prepayment Period;

     

    (xiv)  whether
      the Stepdown Date has occurred and whether Trigger Event is in
      effect;

     

    (xv)  the
      cumulative Realized Losses through the end of the preceding month;

     

    (xvi)  if
      available, the book value of any REO Property as of the close of business on
      the
      last Business Day of the calendar month preceding the Distribution
      Date;

     

    (xvii)  the
      aggregate amount of Principal Prepayments made during the related Prepayment
      Period and the aggregate amount of any Prepayment Charges received in respect
      thereof;

     

    (xviii)  the
      aggregate amount of Realized Losses incurred during the related Prepayment
      Period and the aggregate amount of Realized Losses incurred since the Closing
      Date;

     

    (xix)  the
      aggregate amount of Extraordinary Trust Fund Expenses withdrawn from the
      Distribution Account for such Distribution Date;

     

    (xx)  the
      Certificate Principal Balance of the related Certificates before and after
      giving effect to the distribution of principal and allocation of Allocated
      Realized Loss Amounts on such Distribution Date;

     

    (xxi)  the
      number and Scheduled Principal Balance of all the Mortgage Loans for the
      following Distribution Date;

     

    (xxii)  the
      three-month rolling average of the percent equivalent of a fraction, the
      numerator of which is the aggregate Scheduled Principal Balance of the Mortgage
      Loans that are 60 days or more delinquent or are in bankruptcy or foreclosure
      or
      are REO Properties, and the denominator of which is the Scheduled Principal
      Balances of all of the Mortgage Loans;

     

    (xxiii)  the
      Certificate Factor for each such Class of Certificates applicable to such
      Distribution Date;

     

    (xxiv)  the
      Interest Distribution Amount in respect of the Class A Certificates, the
      Mezzanine Certificates and the Class CE-1 Certificates for such Distribution
      Date and the Interest Carry Forward Amount, if any, with respect to the Class
      A
      Certificates and the Mezzanine Certificates on such Distribution Date, and
      in
      the case of the Class A Certificates and the Mezzanine Certificates separately
      identifying any reduction thereof due to allocations of Prepayment Interest
      Shortfalls and interest shortfalls including the following: Realized Losses,
      Relief Act Interest Shortfalls and Net WAC Rate Carryover Amounts;

     

    (xxv)  the
      aggregate amount of any Prepayment Interest Shortfall for such Distribution
      Date, to the extent not covered by payments by Ocwen and Wells Fargo pursuant
      to
      Section 3.22 of this Agreement, the Master Servicer pursuant to
      Section 4.19 of this Agreement or SPS pursuant to the Servicing
      Agreement;

     

    (xxvi)  the
      aggregate amount of Relief Act Interest Shortfalls for such Distribution
      Date;

     

    (xxvii)  the
      amount of, if any, of Net Monthly Excess Cashflow or excess spread and the
      application of such Net Monthly Excess Cashflow;

     

    (xxviii)  the
      Required Overcollateralization Amount and the Credit Enhancement Percentage
      for
      such Distribution Date;

     

    (xxix)  the
      Overcollateralization Increase Amount, if any, for such Distribution
      Date;

     

    (xxx)  the
      Overcollateralization Reduction Amount, if any, for such Distribution
      Date;

     

    (xxxi)  the
      Net
      WAC Rate Carryover Amount, if any, outstanding after reimbursements therefor
      on
      such Distribution Date;

     

    (xxxii)  the
      respective Pass-Through Rates applicable to the Class A Certificates, the
      Mezzanine Certificates and the Class CE-1 Certificates for such Distribution
      Date;

     

    (xxxiii)  the
      amount of any deposit to the Reserve Fund contemplated by
      Section 3.24(b);

     

    (xxxiv)  the
      balance of the Reserve Fund prior to the deposit or withdrawal of any amounts
      on
      such Distribution Date;

     

    (xxxv)  the
      amount of any deposit to the Reserve Fund pursuant to clause
      sixth
      of
      Section 5.01(a)(5);

     

    (xxxvi)  the
      balance of the Reserve Fund after all deposits and withdrawals on such
      Distribution Date;

     

    (xxxvii)  the
      Loss
      Severity Percentage with respect to each Mortgage Loan;

     

    (xxxviii)  the
      Aggregate Loss Severity Percentage; 

     

    (xxxix)  the
      amount of the Prepayment Charges remitted by the Servicers; and

     

    (xl)  the
      number and aggregate unpaid principal balance of (a) Mortgage Loans with respect
      to which bankruptcy protection is in force that are delinquent 60 or more days
      under an applicable bankruptcy plan as of the last day of the preceding calendar
      month and (b) Mortgage Loans that are the subject of forebearance plans that
      are
      delinquent 60 or more days under an applicable forebearance plan as of the
      last
      day of the preceding calendar month.

     

    The
      Securities Administrator will make such statement (and, at its option, any
      additional files containing the same information in an alternative format)
      available each month to the Certificateholders and the Rating Agencies via
      the
      Securities Administrator’s internet website. The Securities Administrator’s
      internet website shall initially be located at http:\\www.ctslink.com and
      assistance in using the website can be obtained by calling the Securities
      Administrator’s customer service desk at 1-301-815-6600. Parties that are unable
      to use the above distribution options 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
      statements are distributed in order to make such distribution more convenient
      and/or more accessible to the above parties and the Securities Administrator
      shall provide timely and adequate notification to all above parties regarding
      any such changes.

     

    In
      the
      case of information furnished pursuant to subclauses (i) and (ii) above, the
      amounts shall be expressed as a dollar amount per Single Certificate of the
      relevant Class.

     

    Within
      a
      reasonable period of time after the end of each calendar year, the Securities
      Administrator shall furnish upon request to each Person who at any time during
      the calendar year was a Holder of a Regular Certificate a statement containing
      the information set forth in subclauses (i) through (iii) above, aggregated
      for
      such calendar year or applicable portion thereof during which such person was
      a
      Certificateholder. Such obligation of the Securities Administrator shall be
      deemed to have been satisfied to the extent that substantially comparable
      information shall be provided by the Securities Administrator pursuant to any
      requirements of the Code as from time to time are in force.

     

    Within
      a
      reasonable period of time after the end of each calendar year, the Securities
      Administrator shall furnish upon request to each Person who at any time during
      the calendar year was a Holder of a Residual Certificate a statement setting
      forth the amount, if any, actually distributed with respect to the Residual
      Certificates, as appropriate, aggregated for such calendar year or applicable
      portion thereof during which such Person was a Certificateholder.

     

    The
      Securities Administrator shall, upon request, furnish to each Certificateholder
      during the term of this Agreement, such periodic, special, or other reports
      or
      information, whether or not provided for herein, as shall be reasonable with
      respect to the Certificateholder or otherwise with respect to the purposes
      of
      this Agreement, all such reports or information to be provided at the expense
      of
      the Certificateholder, in accordance with such reasonable and explicit
      instructions and directions as the Certificateholder may provide.

     

    On
      each
      Distribution Date the Securities Administrator shall provide Bloomberg Financial
      Markets, L.P. (“Bloomberg”) CUSIP level factors for each Class of Certificates
      as of such Distribution Date, using a format and media mutually acceptable
      to
      the Securities Administrator and Bloomberg.

     

    SECTION
      5.03  Servicer
      Reports; P&I Advances.

     

    (a)  On
      the
      18th calendar day of each month, and if the 18th calendar day is not a Business
      Day, the immediately following Business Day and with respect to Ocwen on or
      before 12:00 noon New York time, each Servicer shall deliver to the Master
      Servicer and the Securities Administrator by telecopy or electronic mail (or
      by
      such other means as such Servicer, the Master Servicer and the Securities
      Administrator may agree from time to time) a remittance report containing such
      information with respect to the related Mortgage Loans and the related
      Distribution Date as is reasonably available to such Servicer as the Master
      Servicer or the Securities Administrator may reasonably require so as to enable
      the Master Servicer to master service the Mortgage Loans and oversee the
      servicing by such Servicer and the Securities Administrator to fulfill its
      obligations hereunder with respect to securities and tax reporting.
      Any
      report delivered by a Servicer pursuant to this Section 5.03(a) shall
      include the amount collected by such Servicer in respect of Arrearages and
      principal due on the Mortgage Loans prior to the Cut-off Date.

     

    (b)  The
      amount of P&I Advances to be made by the related Servicer on any
      Distribution Date shall equal, subject to Section 5.03(d), (i) with respect
      to the Mortgage Loans other than the Simple Interest Mortgage Loans, the
      aggregate amount of Monthly Payments (net of the related Servicing Fees), due
      during the related Due Period in respect of the Mortgage Loans, which Monthly
      Payments were delinquent as of the close of business on the related
      Determination Date, (ii) with respect to the Simple Interest Mortgage Loans,
      thirty (30) days’ interest (net of the related Servicing Fees) on each such
      Simple Interest Mortgage Loan for which the Monthly Payment was due during
      the
      related Due Period which Monthly Payments were delinquent as of the close of
      business on the related Determination Date and (iii) with respect to each REO
      Property which was acquired during or prior to the related Prepayment Period
      and
      as to which an REO Disposition did not occur during the related Prepayment
      Period, an amount equal to the excess, if any, of the REO Imputed Interest
      on
      such REO Property for the most recently ended calendar month, over the net
      income from such REO Property deposited in the related Collection Account
      pursuant to Section 3.21 of this Agreement for distribution on such
      Distribution Date; provided, however, no Servicer shall be required to make
      P&I Advances with respect to any Monthly Payments due on a Mortgage Loan
      prior to the Cut-off Date, any Relief Act Interest Shortfalls, shortfalls due
      to
      bankruptcy proceedings or with respect to Prepayment Interest Shortfalls in
      excess of its obligations under Section 3.22 of this Agreement. For
      purposes of the preceding sentence, the Monthly Payment on each Balloon Mortgage
      Loan with a delinquent Balloon Payment is equal to the assumed monthly payment
      that would have been due on the related Due Date based on the original principal
      amortization schedule for such Balloon Mortgage Loan. Notwithstanding the
      generality of the foregoing, for purposes of a Servicer’s determination of
      whether or not a P&I Advance is required to be made on a Mortgage Loan for
      which the Mortgagor has failed to make one or more Monthly Payments due on
      such
      Mortgage Loan on or prior to the Cut-off Date, any payment in an amount
      equal to a Monthly Payment received by the related Servicer during the Due
      Period relating to such Servicer Remittance Date shall be deemed to be the
      Monthly Payment due during such Due Period and the related Servicer shall not
      be
      required to make a P&I Advance with respect to such Mortgage Loan. In
      addition, no portion of such Monthly Payment received on such Mortgage Loan
      will
      constitute the receipt of an Arrearage with respect to such Mortgage Loan unless
      all Monthly Payments required to be made on such Mortgage Loan for all prior
      Due
      Periods occurring subsequent to the Cut-off Date have been received by the
      related Servicer.

     

    On
      the
      Servicer Remittance Date and with respect to Ocwen by 12:00 noon New York time
      on the Servicer Remittance Date, each Servicer shall remit in immediately
      available funds to the Securities Administrator for deposit in the Distribution
      Account an amount equal to the aggregate amount of P&I Advances, if any, to
      be made in respect of the Mortgage Loans serviced by such Servicer for the
      related Distribution Date either (i) from its own funds or (ii) from the related
      Collection Account, to the extent of any Amounts Held For Future Distribution
      on
      deposit therein (in which case it will cause to be made an appropriate entry
      in
      the records of the related Collection Account that Amounts Held For Future
      Distribution have been, as permitted by this Section 5.03, used by the
      related Servicer in discharge of any such P&I Advance) or (iii) in the form
      of any combination of (i) and (ii) aggregating the total amount of P&I
      Advances to be made by the related Servicer with respect to the Mortgage Loans.
      In addition, the related Servicer shall have the right to reimburse itself
      for
      any outstanding P&I Advance made from its own funds from Amounts Held for
      Future Distribution. Any Amounts Held For Future Distribution used by the
      related Servicer to make P&I Advances or to reimburse itself for outstanding
      P&I Advances shall be appropriately reflected in such Servicer’s records and
      replaced by such Servicer by deposit in the related Collection Account no later
      than the close of business on the Servicer Remittance Date immediately following
      the Due Period or Prepayment Period for which such amounts relate. The
      Securities Administrator will notify the related Servicer and the Master
      Servicer by the close of business on the Business Day prior to the Distribution
      Date in the event that the amount remitted by the related Servicer to the
      Securities Administrator on such date is less than the P&I Advances required
      to be made by such Servicer for the related Distribution Date.

     

    (c) The
      obligation of each Servicer to make such P&I Advances with respect to the
      Mortgage Loans serviced by such Servicer is mandatory, notwithstanding any
      other
      provision of this Agreement but subject to (d) below, and, with respect to
      any
      Mortgage Loan or REO Property, shall continue until a Final Recovery
      Determination in connection therewith or the removal thereof from the Trust
      Fund
      pursuant to any applicable provision of this Agreement, except as otherwise
      provided in this Section.

     

    (d) Notwithstanding
      anything herein to the contrary, no P&I Advance or Servicing Advance shall
      be required to be made hereunder by any Servicer if such P&I Advance or
      Servicing Advance would, if made, constitute a Nonrecoverable P&I Advance or
      Nonrecoverable Servicing Advance, respectively. The determination by the related
      Servicer that it has made a Nonrecoverable P&I Advance or a Nonrecoverable
      Servicing Advance or that any proposed P&I Advance or Servicing Advance, if
      made, would constitute a Nonrecoverable P&I Advance or Nonrecoverable
      Servicing Advance, respectively, shall be evidenced by a certification of a
      Servicing Officer delivered to the Master Servicer.

     

    (e) Subject
      to and in accordance with the provisions of Article VIII of this Agreement,
      in
      the event a Servicer fails to make any required P&I Advance, then the Master
      Servicer (in its capacity as successor servicer) or any other successor Servicer
      shall be required to make such P&I Advance on the Distribution Date on which
      the related Servicer was required to make such Advance, subject to its
      determination of recoverability. Subject to and in accordance with the
      provisions of Article VIII of this Agreement, in the event Wells Fargo fails
      to
      make any required P&I Advance, then the successor servicer shall be required
      to make such P&I Advance on the Distribution Date on which Wells Fargo was
      required to make such Advance, subject to its determination of recoverability.
      In addition, in the event that SPS fails to make a required P&I Advance
      under the Servicing Agreement, the Master Servicer (in its capacity as successor
      Servicer) will be required to make such P&I Advance on the Distribution Date
      on which such Servicer was required to make such P&I Advance, subject to its
      determination of recoverability.

     

    SECTION
      5.04  Allocation
      of Realized Losses.

     

    (a)  On
      or
      before 12:00 noon New York time on the 18th calendar day of each month, and
      if
      the 18th calendar day is not a Business Day, the immediately following Business
      Day, the related Servicer shall determine as to each Mortgage Loan serviced
      by
      such Servicer and any related REO Property and include in the monthly remittance
      report provided to the Master Servicer and the Securities Administrator
      (substantially in the form of Schedule 4 hereto), such information as is
      reasonably available to the related Servicer, as the Master Servicer or the
      Securities Administrator may reasonably require so as to enable the Master
      Servicer to master service the Mortgage Loans and oversee the servicing by
      the
      related Servicer and the Securities Administrator to fulfill its obligations
      hereunder with respect to securities and tax reporting, which shall include,
      but
      not be limited to: (i) the total amount of Realized Losses, if any, incurred
      in
      connection with any Final Recovery Determinations made during the related
      Prepayment Period; and (ii) the respective portions of such Realized Losses
      allocable to interest and allocable to principal. Prior to each Determination
      Date, the Servicers shall also determine as to each Mortgage Loan: (i) the
      total
      amount of Realized Losses, if any, incurred in connection with any Deficient
      Valuations made during the related Prepayment Period; and (ii) the total amount
      of Realized Losses, if any, incurred in connection with Debt Service Reductions
      in respect of Monthly Payments due during the related Due Period.

     

    (b)  All
      Realized Losses on the Mortgage Loans allocated to any REMIC I Regular Interest
      pursuant to Section 5.04(c) of this Agreement for each Distribution Date
      will first, cause a reduction in Net Monthly Excess Cashflow for that
      Distribution Date and second, cause a reduction in the Overcollateralization
      Amount for that Distribution Date until reduced to zero. To the extent that
      Realized Losses on a Distribution Date cause the aggregate Certificate Principal
      Balance of the Offered Certificates (after taking into account all distributions
      on such Distribution Date) to exceed the aggregate Scheduled Principal Balance
      of the Mortgage Loans as of the last day of the related Due Period, such excess
      shall be allocated by the Securities Administrator as follows: first, to the
      Class M-5 Certificates, until the Certificate Principal Balance of the Class
      M-5
      Certificates has been reduced to zero; second, to the Class M-4 Certificates,
      until the Certificate Principal Balance of the Class M-4 Certificates has been
      reduced to zero; third, to the Class M-3 Certificates, until the Certificate
      Principal Balance of the Class M-3 Certificates has been reduced to zero;
      fourth, to the Class M-2 Certificates, until the Certificate Principal Balance
      of the Class M-2 Certificates has been reduced to zero; and fifth, to the Class
      M-1 Certificates, until the Certificate Principal Balance of the Class M-1
      Certificates has been reduced to zero. All Realized Losses to be allocated
      to
      the Certificate Principal Balances of all Classes on any Distribution Date
      shall
      be so allocated after the actual distributions to be made on such date as
      provided above. All references above to the Certificate Principal Balance of
      any
      Class of Certificates shall be to the Certificate Principal Balance of such
      Class immediately prior to the relevant Distribution Date, before reduction
      thereof by any Realized Losses, in each case to be allocated to such Class
      of
      Certificates, on such Distribution Date.

     

    Any
      allocation of Realized Losses to a Mezzanine Certificate on any Distribution
      Date shall be made by reducing the Certificate Principal Balance thereof by
      the
      amount so allocated. No allocations of any Realized Losses shall be made to
      the
      Certificate Principal Balances of the Class A Certificates or the Class P
      Certificates.

     

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

     

    In
      addition, in the event that a Servicer receives any Subsequent Recoveries,
      such
      Servicer shall deposit such funds into the related Collection Account pursuant
      to Section 3.08 of this Agreement or into the Custodial Account pursuant to
      the Servicing Agreement. If, after taking into account such Subsequent
      Recoveries the amount of a Realized Loss is reduced, the amount of such
      Subsequent Recoveries will be applied to increase the Certificate Principal
      Balance of the Mezzanine Certificates with the highest payment priority to
      which
      Realized Losses have been allocated, but not by more than the amount of Realized
      Losses previously allocated to that Class of Mezzanine Certificates pursuant
      to
      this Section 5.04 and not previously reimbursed to such Class of Mezzanine
      Certificates with Net Monthly Excess Cashflow pursuant to clause third
      of
      Section 5.01(a)(5) of this Agreement. The amount of any remaining
      Subsequent Recoveries will be applied to sequentially increase the Certificate
      Principal Balance of the Mezzanine Certificates, beginning with the Class of
      Mezzanine Certificates with the next highest payment priority, up to the amount
      of such Realized Losses previously allocated to such Class of Mezzanine
      Certificates pursuant to this Section 5.04 and not previously reimbursed to
      such Class of Mezzanine Certificates with Net Monthly Excess Cashflow pursuant
      to clause third
      of
      Section 5.01(a)(5). Holders of such Certificates will not be entitled to
      any payment in respect of current interest on the amount of such increases
      for
      any Interest Accrual Period preceding the Distribution Date on which such
      increase occurs. Any such increases shall be applied to the Certificate
      Principal Balance of each Mezzanine Certificate of such Class in accordance
      with
      its respective Percentage Interest.

     

    (c)  All
      Realized Losses on the Mortgage Loans shall be allocated by the Securities
      Administrator, on each Distribution Date to the following REMIC I Regular
      Interests in the specified percentages, as follows: first, to Uncertificated
      Interest payable to the REMIC I Regular Interest I-LTAA and REMIC I Regular
      Interest I-LTZZ up to an aggregate amount equal to the REMIC I Interest Loss
      Allocation Amount, 98.00% and 2.00%, respectively; second, to the Uncertificated
      Balances of the REMIC I Regular Interest I-LTAA and REMIC I Regular Interest
      I-LTZZ up to an aggregate amount equal to the REMIC I Principal Loss Allocation
      Amount, 98.00% and 2.00%, respectively; third, to the Uncertificated Balances
      of
      REMIC I Regular Interest I-LTAA, REMIC I Regular Interest I-LTM5 and REMIC
      I
      Regular Interest I-LTZZ, 98.00%, 1.00% and 1.00%, respectively, until the
      Uncertificated Balance of REMIC I Regular Interest I-LTM5 has been reduced
      to
      zero; fourth, to the Uncertificated Balances of REMIC I Regular Interest I-LTAA,
      REMIC I Regular Interest I-LTM4 and REMIC I Regular Interest I-LTZZ, 98.00%,
      1.00% and 1.00%, respectively, until the Uncertificated Balance of REMIC I
      Regular Interest I-LTM4 has been reduced to zero; fifth, to the Uncertificated
      Balances of REMIC I Regular Interest I-LTAA, REMIC I Regular Interest I-LTM3
      and
      REMIC I Regular Interest I-LTZZ, 98.00%, 1.00% and 1.00%, respectively, until
      the Uncertificated Balance of REMIC I Regular Interest I-LTM3 has been reduced
      to zero; sixth, to the Uncertificated Balances of REMIC I Regular Interest
      I-LTAA, REMIC I Regular Interest I-LTM2 and REMIC I Regular Interest I-LTZZ,
      98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Balance of
      REMIC
      I Regular Interest I-LTM2 has been reduced to zero; and seventh, to the
      Uncertificated Balances of REMIC I Regular Interest I-LTAA, REMIC I Regular
      Interest I-LTM1 and REMIC I Regular Interest I-LTZZ, 98.00%, 1.00% and 1.00%,
      respectively, until the Uncertificated Balance of REMIC I Regular Interest
      I-LTM1 has been reduced to zero.

     

    SECTION
      5.05  Compliance
      with Withholding Requirements.

     

    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 that
      the
      Trustee reasonably believes are applicable under the Code. The consent of
      Certificateholders shall not be required for such withholding. In the event
      the
      Securities Administrator does withhold any amount from interest or original
      issue discount payments or advances thereof to any Certificateholder pursuant
      to
      federal withholding requirements, the Securities Administrator shall indicate
      the amount withheld to such Certificateholders.

     

    SECTION
      5.06  Reports
      Filed with Securities and Exchange Commission.

     

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

     

    (ii)  As
      set
      forth on Exhibit G hereto, within 5 calendar days after the related Distribution
      Date, (A) certain parties to the ACE Securities Corp., Home Equity Loan Trust,
      Series 2006-SD2 transaction shall be required to provide to the Securities
      Administrator and the Depositor, to the extent known by a responsible officer
      thereof, in EDGAR-compatible form, or in such other form as otherwise agreed
      upon by the Securities Administrator and such party, the form and substance
      of
      any Additional Form 10-D Disclosure, if applicable, together with an Additional
      Disclosure Notification in the form of Exhibit H hereto (an “Additional
      Disclosure Notification”) and (B) the Depositor will approve, as to form and
      substance, or disapprove, as the case may be, the inclusion of the Additional
      Form 10-D Disclosure on Form 10-D. The Depositor will be responsible for any
      reasonable fees and expenses assessed or incurred by the Securities
      Administrator in connection with including any Additional Form 10-D Disclosure
      on Form 10-D pursuant to this paragraph. 

     

    (iii)  After
      preparing the Form 10-D, the Securities Administrator shall forward
      electronically a copy of the Form 10-D to the Depositor (provided that such
      Form
      10-D includes any Additional Form 10-D Disclosure). Within two (2) Business
      Days
      after receipt of such copy but no later than the 12th
      calendar
      day after the Distribution Date, the Depositor shall notify the Securities
      Administrator in writing (which may be furnished electronically) of any changes
      to or approval of such Form 10-D. In the absence of receipt of any written
      changes or approval by the due date specified herein, or if the Depositor does
      not request a copy of a Form 10-D, the Securities Administrator shall be
      entitled to assume that such Form 10-D is in final form and the Securities
      Administrator may proceed with the execution and filing of the Form 10-D. A
      duly
      authorized representative of the Master Servicer shall sign each Form 10-D.
      If a
      Form 10-D cannot be filed on time or if a previously filed Form 10-D needs
      to be
      amended, the Securities Administrator will follow the procedures set forth
      in
      Section 5.06(c)(ii). Promptly (but no later than 1 Business Day) after filing
      with the Commission, the Securities Administrator will make available on its
      internet website a final executed copy of each Form 10-D filed by the Securities
      Administrator. Each party to this Agreement acknowledges that the performance
      by
      the Securities Administrator and the Master Servicer of their duties under
      this
      Section 5.06(a) related to the timely preparation, execution and filing of
      Form
      10-D is contingent upon such parties strictly observing all applicable deadlines
      in the performance of their duties as set forth in this Agreement. Neither
      the
      Securities Administrator nor the Master Servicer shall have any liability for
      any loss, expense, damage, claim arising out of or with respect to any failure
      to properly prepare, execute and/or timely file such Form 10-D, where such
      failure results from the Securities Administrator’s inability or failure to
      receive, on a timely basis, any information from any other party hereto needed
      to prepare, arrange for execution or file such Form 10-D, not resulting from
      its
      own negligence, bad faith or willful misconduct.

     

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

     

    (ii)  As
      set
      forth on Exhibit G hereto, for so long as the Trust is subject to the Exchange
      Act reporting requirements, no later than the close of business New York City
      time on the 2nd Business Day after the occurrence of a Reportable Event (i)
      the
      parties to the ACE Securities Corp., Home Equity Loan Trust, Series 2006-SD2
      transaction shall be required to provide to the Securities Administrator and
      the
      Depositor, to the extent known by a responsible officer thereof, in
      EDGAR-compatible form, or in such other form as otherwise agreed upon by the
      Securities Administrator and such party, the form and substance of any Form
      8-K
      Disclosure Information, if applicable, together with an Additional Disclosure
      Notification, and (ii) the Depositor will approve, as to form and substance,
      or
      disapprove, as the case may be, the inclusion of the Form 8-K Disclosure
      Information. The Depositor will be responsible for any reasonable fees and
      expenses assessed or incurred by the Securities Administrator in connection
      with
      including any Form 8-K Disclosure Information on Form 8-K pursuant to this
      paragraph. 

     

    (iii)  After
      preparing the Form 8-K, the Securities Administrator shall upon request, forward
      electronically a copy of the Form 8-K to the Depositor. Promptly, but no later
      than the close of business on the third Business Day after the Reportable Event,
      the Depositor shall notify the Securities Administrator in writing (which may
      be
      furnished electronically) of any changes to or approval of such Form 8-K. In
      the
      absence of receipt of any written changes or approval by the third Business
      Day,
      or if the Depositor does not request a copy of a Form 8-K, the Securities
      Administrator shall be entitled to assume that such Form 8-K is in final form
      and the Securities Administrator may proceed with the execution and filing
      of
      the Form 8-K. A duly authorized representative of the Master Servicer shall
      sign
      each Form 8-K. If a Form 8-K cannot be filed on time or if a previously filed
      Form 8-K needs to be amended, the Securities Administrator will follow the
      procedures set forth in Section 5.06(c)(ii). Promptly (but no later than 1
      Business Day) after filing with the Commission, the Securities Administrator
      will, make available on its internet website a final executed copy of each
      Form
      8-K that has been prepared and filed by the Securities Administrator. The
      parties to this Agreement acknowledge that the performance by the Master
      Servicer and the Securities Administrator of their duties under this Section
      5.06(b) related to the timely preparation, execution and filing of Form 8-K
      is
      contingent upon such parties strictly observing all applicable deadlines in
      the
      performance of their duties under this Agreement. Neither the Master Servicer
      nor the Securities Administrator shall have any liability for any loss, expense,
      damage, claim arising out of or with respect to any failure to properly prepare,
      execute and/or timely file such Form 8-K, where such failure results from the
      Securities Administrator’s inability or failure to receive, on a timely basis,
      any information from any other party hereto needed to prepare, execute or
      arrange for execution or file such Form 8-K, not resulting from its own
      negligence, bad faith or willful misconduct.

     

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

     

    (ii)  In
      the
      event that the Securities Administrator is unable to timely file with the
      Commission all or any required portion of any Form 8-K, 10-D or 10-K required
      to
      be filed by this Agreement because required disclosure information was either
      not delivered to it or delivered to it after the delivery deadlines set forth
      in
      this Agreement or for any other reason, the Securities Administrator will
      promptly notify electronically the Depositor. In the case of Form 10-D and
      10-K,
      the parties to this Agreement will cooperate to prepare and file a Form 12b-25
      and a 10-DA and 10-KA, as applicable, pursuant to Rule 12b-25 of the Exchange
      Act. In the case of Form 8-K, the Securities Administrator will, upon receipt
      of
      all required Form 8-K Disclosure Information and upon the approval and direction
      of the Depositor, include such disclosure information on the next Form 10-D.
      In
      the event that any previously filed Form 8-K, 10-D or 10-K needs to be amended
      in connection with any Additional Form 10-D Disclosure (other than for the
      purpose of restating any Monthly Report), any Additional Form 10-K Disclosure
      or
      any Form 8-K Disclosure Information or any amendment to such disclosure, the
      Securities Administrator will notify electronically the Depositor only if the
      amendment pertains to an additional reporting item being revised and/or amended
      on such form, but not if an amendment is being filed as a result of a Remittance
      Report revision, and the Depositor will cooperate with the Securities
      Administrator in preparing any necessary 8-KA, 10-DA or 10-KA. Any Form 15,
      Form
      12b-25 or any amendment to Form 8-K, 10-D or 10-K shall be signed by a duly
      authorized representative, or senior officer in charge of the master servicing,
      as applicable, of the Master Servicer. The parties to this Agreement acknowledge
      that the performance by the Securities Administrator and the Master Servicer
      of
      their duties under this Section 5.06(c) related to the timely preparation,
      execution and filing of Form 15, a Form 12b-25 or any amendment to Form 8-K,
      10-D or 10-K is contingent upon each such party performing its duties under
      this
      Agreement. Neither the Master Servicer nor the Securities Administrator shall
      have any liability for any loss, expense, damage, claim arising out of or with
      respect to any failure to properly prepare, execute and/or timely file any
      such
      Form 15, Form 12b-25 or any amendments to Forms 8-K, 10-D or 10-K, where such
      failure results from the Securities Administrator’s inability or failure to
      receive, on a timely basis, any information from any other party hereto needed
      to prepare, execute or arrange for execution or file such Form 15, Form 12b-25
      or any amendments to Forms 8-K, 10-D or 10-K, not resulting from its own
      negligence, bad faith or willful misconduct.

     

    (d)  (i)On
      or
      prior to the 90th
      day
      after the end of each fiscal year of the Trust or such earlier date as may
      be
      required by the Exchange Act (the “10-K Filing Deadline”) (it being understood
      that the fiscal year for the Trust ends on December 31st
      of each
      year), commencing in March 2007, the Securities Administrator shall prepare
      and
      file on behalf of the Trust a Form 10-K, in form and substance as required
      by
      the Exchange Act. Each such Form 10-K shall include the following items, in
      each
      case to the extent they have been delivered to the Securities Administrator
      within the applicable time frames set forth in this Agreement, the related
      servicing agreement and custodial agreements, (i) an annual compliance statement
      for each Servicer, each Additional Servicer, the Master Servicer, the Securities
      Administrator and any Servicing Function Participant engaged by such parties
      (each, a “Reporting Servicer”) as described under Section 3.17 and Section 4.15
      and in such other agreements, (ii)(A) the annual reports on assessment of
      compliance with servicing criteria for each Reporting Servicer, as described
      under Section 3.18 and Section 4.16, and in such other agreements and (B) if
      each Reporting Servicer’s report on assessment of compliance with servicing
      criteria described under Section 3.18 and Section 4.16 identifies any material
      instance of noncompliance, disclosure identifying such instance of
      noncompliance, or if each Reporting Servicer’s report on assessment of
      compliance with servicing criteria described under Section 3.18 and Section
      4.16
      is not included as an exhibit to such Form 10-K, disclosure that such report
      is
      not included and an explanation why such report is not included, (iii)(A) the
      registered public accounting firm attestation report for each Reporting
      Servicer, as described under Section 3.18 and Section 4.17, or in such other
      agreement and (B) if any registered public accounting firm attestation report
      described under Section 3.18 and Section 4.17 identifies any material instance
      of noncompliance, disclosure identifying such instance of noncompliance, or
      if
      any such registered public accounting firm attestation report is not included
      as
      an exhibit to such Form 10-K, disclosure that such report is not included and
      an
      explanation why such report is not included, and (iv) a Sarbanes-Oxley
      Certification as described in Section 3.20 and Section 4.18 (provided, however,
      that the Securities Administrator, at its discretion, may omit from the Form
      10-K any annual compliance statement, assessment of compliance or attestation
      report that is not required to be filed with such Form 10-K pursuant to
      Regulation AB). Any disclosure or information in addition to (i) through (iv)
      above that is required to be included on Form 10-K (“Additional Form 10-K
      Disclosure”) shall be reported by the parties set forth on Exhibit G to the
      Depositor and the Securities Administrator and directed and approved by the
      Depositor pursuant to the following paragraph, and the Securities Administrator
      will have no duty or liability for any failure hereunder to determine or prepare
      any Additional Form 10-K Disclosure, except as set forth in the next
      paragraph.

     

    (ii)  As
      set
      forth on Exhibit G hereto, no later than March 15 of each year that the Trust
      is
      subject to the Exchange Act reporting requirements, commencing in 2007, (i)
      the
      parties to the ACE Securities Corp., Home Equity Loan Trust, Series 2006-SD2
      transaction shall be required to provide to the Securities Administrator and
      the
      Depositor, to the extent known by a responsible officer thereof, in
      EDGAR-compatible form, or in such other form as otherwise agreed upon by the
      Securities Administrator and such party, the form and substance of any
      Additional Form 10-K Disclosure, if applicable, together with an Additional
      Disclosure Notification, and (ii) the Depositor will approve, as to form and
      substance, or disapprove, as the case may be, the inclusion of the Additional
      Form 10-K Disclosure on Form 10-K. The Depositor will be responsible for any
      reasonable fees and expenses assessed or incurred by the Securities
      Administrator in connection with including any Additional Form 10-K Disclosure
      on Form 10-K pursuant to this paragraph.

     

    (iii)  After
      preparing the Form 10-K, the Securities Administrator shall upon request,
      forward electronically a copy of the Form 10-K to the Depositor. Within three
      (3) Business Days after receipt of such copy, but in no event later than March
      25th
      of each
      year that the Trust is subject to the Exchange Act reporting requirements,
      the
      Depositor shall notify the Securities Administrator in writing (which may be
      furnished electronically) of any changes to or approval of such Form 10-K.
      In
      the absence of receipt of any written changes or approval by March 25th, or
      if
      the Depositor does not request a copy of a Form 10-K, the Securities
      Administrator shall be entitled to assume that such Form 10-K is in final form
      and the Securities Administrator may proceed with the execution and filing
      of
      the Form 10-K. A senior officer of the Master Servicer in charge of the master
      servicing function shall sign the Form 10-K. If a Form 10-K cannot be filed
      on
      time or if a previously filed Form 10-K needs to be amended, the Securities
      Administrator will follow the procedures set forth in Section 5.06(c)(ii).
      Promptly (but no later than 1 Business Day) after filing with the Commission,
      the Securities Administrator will make available on its internet website a
      final
      executed copy of each Form 10-K filed by the Securities Administrator. The
      parties to this Agreement acknowledge that the performance by the Master
      Servicer and the Securities Administrator of their respective duties under
      this
      Section 5.06(d) related to the timely preparation, execution and filing of
      Form
      10-K is contingent upon such parties (and any Additional Servicer or Servicing
      Function Participant) strictly observing all applicable deadlines in the
      performance of their duties under this Section 5.06(d), Section 3.17, Section
      3.18, Section 3.19, Section 4.16, Section 4.17 and Section 4.18. Neither the
      Master Servicer nor the Securities Administrator shall have any liability for
      any loss, expense, damage or claim arising out of or with respect to any failure
      to properly prepare, execute and/or timely file such Form 10-K, where such
      failure results from the Securities Administrator’s inability or failure to
      receive, on a timely basis, any information from any other party hereto needed
      to prepare, arrange for execution or file such Form 10-K, not resulting from
      its
      own negligence, bad faith or willful misconduct.

     

    (e)  Each
      of
      Form 10-D and Form 10-K requires the registrant to indicate (by checking “yes”
or “no”) that it “(1) has filed all reports required to be filed by Section 13
      or 15(d) of the Exchange Act during the preceding 12 months (or for such shorter
      period that the registrant was required to file such reports), and (2) has
      been
      subject to such filing requirements for the past 90 days.” The Depositor hereby
      represents to the Securities Administrator that the Depositor has filed all
      such
      required reports during the preceding 12 months and that it has been subject
      to
      such filing requirement for the past 90 days. The Depositor shall notify the
      Securities Administrator in writing, no later than the fifth calendar day after
      the related Distribution Date with respect to the filing of a report on Form
      10-D and no later than March 15th
      with
      respect to the filing of a report on Form 10-K, if the answer to the question
      should be “no” as a result of filings that relate to other securitization
      transactions of the Depositor for which the Securities Administrator does not
      have the obligation to prepare and file Exchange Act reports. 

     

    (f)  The
      Securities Administrator shall indemnify and hold harmless the Depositor, the
      Trustee and their respective officers, directors and Affiliates from and against
      any losses, damages, penalties, fines, forfeitures, reasonable and necessary
      legal fees and related costs, judgments and other costs and expenses arising
      out
      of or based upon a breach of the Master Servicer’s obligations under this
      Section 5.06 or the Master Servicer’s negligence, bad faith or willful
      misconduct in connection therewith. 

     

    (g)  Notwithstanding
      the provisions of Section 12.01, this Section 5.06 may be amended without the
      consent of the Certificateholders.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      VI

     

    THE
      CERTIFICATES

     

    SECTION
      6.01  The
      Certificates.

     

    (a)  The
      Certificates in the aggregate will represent the entire beneficial ownership
      interest in the Mortgage Loans and all other assets included in REMIC I and
      REMIC II.

     

    The
      Certificates will be substantially in the forms annexed hereto as Exhibits
      A-1
      through A-6. The Certificates of each Class will be issuable in registered
      form
      only, in denominations of authorized Percentage Interests as described in the
      definition thereof. Each Certificate will share ratably in all rights of the
      related Class.

     

    Upon
      original issue, the Certificates shall be executed and authenticated by the
      Securities Administrator and delivered by the Trustee to and upon the written
      order of the Depositor. The Certificates shall be executed by manual or
      facsimile signature on behalf of the Trust by the Securities Administrator
      by an
      authorized signatory. Certificates bearing the manual or facsimile signatures
      of
      individuals who were at any time the proper officers of the Securities
      Administrator shall bind the Trust, notwithstanding that such individuals or
      any
      of them have ceased to hold such offices prior to the authentication and
      delivery of such Certificates or did not hold such offices at the date of such
      Certificates. No Certificate shall be entitled to any benefit under this
      Agreement or be valid for any purpose, unless there appears on such Certificate
      a certificate of authentication substantially in the form provided herein
      executed by the Securities Administrator by manual signature, and such
      certificate of authentication shall be conclusive evidence, and the only
      evidence, that such Certificate has been duly authenticated and delivered
      hereunder. All Certificates shall be dated the date of their
      authentication.

     

    (b)  The
      Class
      A Certificates and the Mezzanine Certificates shall initially be issued as
      one
      or more Certificates held by the Book-Entry Custodian or, if appointed to hold
      such Certificates as provided below, the Depository and registered in the name
      of the Depository or its nominee and, except as provided below, registration
      of
      such Certificates may not be transferred by the Securities Administrator except
      to another Depository that agrees to hold such Certificates for the respective
      Certificate Owners with Ownership Interests therein. The Certificate Owners
      shall hold their respective Ownership Interests in and to such Certificates
      through the book-entry facilities of the Depository and, except as provided
      below, shall not be entitled to definitive, fully registered Certificates
      (“Definitive Certificates”) in respect of such Ownership Interests. All
      transfers by Certificate Owners of their respective Ownership Interests in
      the
      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 the Ownership
      Interests in the 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. The Securities Administrator is hereby initially
      appointed as the Book-Entry Custodian and hereby agrees to act as such in
      accordance herewith and in accordance with the agreement that it has with the
      Depository authorizing it to act as such. The Book-Entry Custodian may, and,
      if
      it is no longer qualified to act as such, the Book-Entry Custodian shall,
      appoint, by a written instrument delivered to the Depositor, the Servicers
      and,
      if the Trustee is not the Book-Entry Custodian, the Trustee, any other transfer
      agent (including the Depository or any successor Depository) to act as
      Book-Entry Custodian under such conditions as the predecessor Book-Entry
      Custodian and the Depository or any successor Depository may prescribe, provided
      that the predecessor Book-Entry Custodian shall not be relieved of any of its
      duties or responsibilities by reason of any such appointment of other than
      the
      Depository. If the Securities Administrator resigns or is removed in accordance
      with the terms hereof, the successor Securities Administrator or, if it so
      elects, the Depository shall immediately succeed to its predecessor’s duties as
      Book-Entry Custodian. The Depositor shall have the right to inspect, and to
      obtain copies of, any Certificates held as Book-Entry Certificates by the
      Book-Entry Custodian.

     

    (c)  The
      Class
      CE-1 Certificates and the Class CE-2 Certificates initially offered and sold
      in
      offshore transactions in reliance on Regulation S shall be issued in the form
      of
      a temporary global certificate in definitive, fully registered form (each,
      a
“Regulation S Temporary Global Certificate”), which shall be deposited with the
      Securities Administrator or an agent of the Securities Administrator as
      custodian for the Depository and registered in the name of Cede & Co. as
      nominee of the Depository for the account of designated agents holding on behalf
      of Euroclear or Clearstream. Beneficial interests in each Regulation S Temporary
      Global Certificate may be held only through Euroclear or Clearstream; provided,
      however, that such interests may be exchanged for interests in a Definitive
      Certificate in accordance with the requirements described in Section 6.02.
      After the expiration of the Release Date, a beneficial interest in a Regulation
      S Temporary Global Certificate may be exchanged for a beneficial interest in
      the
      related permanent global certificate of the same Class (each, a “Regulation S
      Permanent Global Certificate”), in accordance with the procedures set forth in
      Section 6.02. Each Regulation S Permanent Global Certificate shall be
      deposited with the Securities Administrator or an agent of the Securities
      Administrator as custodian for the Depository and registered in the name of
      Cede
& Co. as nominee of the Depository.

     

    (d)  The
      Class
      CE-1, Class CE-2 and Class P Certificates offered and sold to Qualified
      Institutional Buyers (“QIBs”) in reliance on Rule 144A under the Securities Act
      (“Rule 144A”) will be issued in the form of Definitive
      Certificates.

     

    (e)  The
      Trustee, the Servicers, the Securities Administrator, the Master Servicer and
      the Depositor may for all purposes (including the making of payments due on
      the
      Book-Entry Certificates and global certificates) deal with the Depository as
      the
      authorized representative of the Certificate Owners with respect to the
      Book-Entry Certificates for the purposes of exercising the rights of
      Certificateholders hereunder. The rights of Certificate Owners with respect
      to
      the Book-Entry Certificates and global certificates shall be limited to those
      established by law and agreements between such Certificate Owners and the
      Depository Participants and brokerage firms representing such Certificate
      Owners. Multiple requests and directions from, and votes of, the Depository
      as
      Holder of the Book-Entry Certificates and global certificates with respect
      to
      any particular matter shall not be deemed inconsistent if they are made with
      respect to different Certificate Owners. The Securities Administrator may
      establish a reasonable record date in connection with solicitations of consents
      from or voting by Certificateholders and shall give notice to the Depository
      of
      such record date.

     

    If
      (i)(A)
      the Depositor advises the Securities Administrator in writing that the
      Depository is no longer willing or able to properly discharge its
      responsibilities as Depository, and (B) the Depositor is unable to locate a
      qualified successor, (ii) the Depositor at its option advises the Securities
      Administrator in writing that it elects to terminate the book-entry system
      through the Depository or (iii) after the occurrence of a Servicer Event of
      Default, Certificate Owners representing in the aggregate not less than 51%
      of
      the Ownership Interests of the Book-Entry Certificates advise the Securities
      Administrator through the Depository, 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 Securities Administrator shall notify all
      Certificate Owners, through the Depository, of the occurrence of any such event
      and of the availability of Definitive Certificates to Certificate Owners
      requesting the same. The Holder of a Regulation S Permanent Global Certificate
      may request that its interest in a global certificate be exchanged for a
      Definitive Certificate. Upon surrender to the Securities Administrator of the
      Book-Entry Certificates or Regulation S Permanent Global Certificate by the
      Book-Entry Custodian or the Depository or the Regulation S Permanent Global
      Certificate by the Depository, as applicable, accompanied by registration
      instructions from the Depository for registration of transfer, the Securities
      Administrator shall cause the Definitive Certificates to be issued. Such
      Definitive Certificates will be issued in minimum denominations of $10,000
      except that any beneficial ownership that was represented by a Book-Entry
      Certificate or a Regulation S Permanent Global Certificate, as applicable,
      in an
      amount less than $10,000 immediately prior to the issuance of a Definitive
      Certificate shall be issued in a minimum denomination equal to the amount
      represented by such Book-Entry Certificate or Regulation S Permanent Global
      Certificate, as applicable. None of the Depositor, the Servicers, the Master
      Servicer, the Securities Administrator or the Trustee shall be liable for any
      delay in the delivery of such instructions and may conclusively rely on, and
      shall be protected in relying on, such instructions. 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 Securities Administrator, to the extent applicable with respect to such
      Definitive Certificates, and the Securities Administrator shall recognize the
      Holders of the Definitive Certificates as Certificateholders
      hereunder.

     

    SECTION
      6.02  Registration
      of Transfer and Exchange of Certificates.

     

    (a)  The
      Securities Administrator shall cause to be kept at one of the offices or
      agencies to be appointed by the Securities Administrator in accordance with
      the
      provisions of Section 9.11 of this Agreement, a Certificate Register for
      the Certificates in which, subject to such reasonable regulations as it may
      prescribe, the Securities Administrator shall provide for the registration
      of
      Certificates and of transfers and exchanges of Certificates as herein
      provided.

     

    (b)  No
      transfer of any Class CE-1 Certificate, Class CE-2 Certificate, Class P
      Certificate or Residual Certificate shall be made unless that transfer is made
      pursuant to an effective registration statement under the Securities Act, and
      effective registration or qualification under applicable state securities laws,
      or is made in a transaction that does not require such registration or
      qualification. In the event that such a transfer of a Class CE-1 Certificate,
      Class CE-2 Certificate, Class P Certificate or Residual Certificate is to be
      made without registration or qualification (other than in connection with the
      initial transfer of any such Certificate by the Depositor), the Securities
      Administrator shall require receipt of: (i) if such transfer is purportedly
      being made in reliance upon Rule 144A under the Securities Act, written
      certifications from the Certificateholder desiring to effect the transfer and
      from such Certificateholder’s prospective transferee, substantially in the form
      attached hereto as Exhibit B-1; (ii) if such transfer is purportedly being
      made
      in reliance upon Rule 501(a) under the Securities Act, written certifications
      from the Certificateholder desiring to effect the transfer and from such
      Certificateholder’s prospective transferee, substantially in the form attached
      hereto as Exhibit B-2; (iii) with respect to any Class CE-1, Class CE-2 or
      Class
      P Certificate, if such transfer is purportedly being made in reliance or
      Regulation S, a written certification from the prospective transferee,
      substantially in the form of Exhibit B-1 and (iv) in all other cases, an Opinion
      of Counsel satisfactory to the Securities Administrator that such transfer
      may
      be made without such registration or qualification (which Opinion of Counsel
      shall not be an expense of the Trust Fund or of the Depositor, the Trustee,
      the
      Master Servicer, the Securities Administrator or the Servicers), together with
      copies of the written certification(s) of the Certificateholder desiring to
      effect the transfer and/or such Certificateholder’s prospective transferee upon
      which such Opinion of Counsel is based, if any. Neither of the Depositor nor
      the
      Securities Administrator is obligated to register or qualify any such
      Certificates under the Securities Act or any other securities laws or to take
      any action not otherwise required under this Agreement to permit the transfer
      of
      such Certificates without registration or qualification. Any Certificateholder
      desiring to effect the transfer of any such Certificate shall, and does hereby
      agree to, indemnify the Trustee, the Depositor, the Master Servicer, the
      Securities Administrator 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.

     

    A
      holder
      of a beneficial interest in a Regulation S Temporary Global Certificate must
      provide Euroclear or Clearstream, as the case may be, with a certificate in
      the
      form of Annex A to Exhibit B-1 hereto certifying that the beneficial owner
      of
      the interest in such Global Certificate is not a U.S. Person (as defined in
      Regulation S), and Euroclear or Clearstream, as the case may be, must provide
      to
      the Trustee and Securities Administrator a certificate in the form of Exhibit
      B-1 hereto prior to (i) the payment of interest or principal with respect to
      such holder’s beneficial interest in the Regulation S Temporary Global
      Certificate and (ii) any exchange of such beneficial interest for a beneficial
      interest in a Regulation S Permanent Global Certificate.

     

    (c)  No
      transfer of a Class CE-1 Certificate, Class CE-2 Certificate, Class P
      Certificate or Residual Certificate or any interest therein shall be made to
      any
      Plan, any Person acting, directly or indirectly, on behalf of any such Plan
      or
      any Person acquiring such Certificates with “Plan Assets” of a Plan within the
      meaning of the Department of Labor regulation promulgated at 29 C.F.R. §
2510.3-101 (“Plan Assets”) unless the Securities Administrator is provided with
      an Opinion of Counsel on which the Depositor, the Master Servicer, the
      Securities Administrator, the Trustee and the Servicers may rely, which
      establishes to the satisfaction of the Securities Administrator that the
      purchase of such Certificates is permissible under applicable law, will not
      constitute or result in any prohibited transaction under ERISA or
      Section 4975 of the Code and will not subject the Depositor, the Servicers,
      the Trustee, the Master Servicer, the Securities Administrator or the Trust
      Fund
      to any obligation or liability (including obligations or liabilities under
      ERISA
      or Section 4975 of the Code) in addition to those undertaken in this
      Agreement, which Opinion of Counsel shall not be an expense of the Depositor,
      any Servicer, the Trustee, the Master Servicer, the Securities Administrator
      or
      the Trust Fund. An Opinion of Counsel will not be required in connection with
      the initial transfer of any such Certificate by the Depositor to an affiliate
      of
      the Depositor (in which case, the Depositor or any affiliate thereof shall
      have
      deemed to have represented that such affiliate is not a Plan or a Person
      investing Plan Assets) and the Securities Administrator shall be entitled to
      conclusively rely upon a representation (which, upon the request of the
      Securities Administrator, shall be a written representation) from the Depositor
      of the status of such transferee as an affiliate of the Depositor.

     

    Each
      holder of a Mezzanine Certificate or any interest therein shall be deemed to
      have represented, by virtue of its acquisition or holding of that Certificate
      or
      interest therein, that either (i) it is not a plan investor or (ii)(1) it is
      an
      insurance company, (2) the source of the funds used to acquire or hold the
      Certificate or interest therein is an “insurance company general account,” as
      such term is defined in PTCE 95-60, and (3) the conditions in Sections I and
      III
      of PTCE 95-60 have been satisfied.

     

    If
      any
      Certificate or any interest therein is acquired or held in violation of the
      conditions described in this Section 6.02(c), the next preceding permitted
      beneficial owner will be treated as the beneficial owner of that Certificate,
      retroactive to the date of transfer to the purported beneficial owner. Any
      purported beneficial owner whose acquisition or holding of any Certificate
      or
      interest therein was effected in violation of the conditions described in this
      Section 6.02(c) shall indemnify and hold harmless the Depositor, the
      Trustee, the Servicers, the Master Servicer, the Securities Administrator and
      the Trust Fund from and against any and all liabilities, claims, costs or
      expenses incurred by those parties as a result of that acquisition or
      holding.

     

    (d)  (i)
      Each
      Person who has or who acquires any Ownership Interest in a Residual Certificate
      shall be deemed by the acceptance or acquisition of such Ownership Interest
      to
      have agreed to be bound by the following provisions and to have irrevocably
      authorized the Securities Administrator or its designee under clause (iii)(A)
      below to deliver payments to a Person other than such Person and to negotiate
      the terms of any mandatory sale under clause (iii)(B) below and to execute
      all
      instruments of Transfer and to do all other things necessary in connection
      with
      any such sale. The rights of each Person acquiring any Ownership Interest in
      a
      Residual Certificate are expressly subject to the following
      provisions:

     

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

     

    (B) In
      connection with any proposed Transfer of any Ownership Interest in a Residual
      Certificate, the Securities Administrator shall require delivery to it, and
      shall not register the Transfer of any Residual Certificate until its receipt
      of, an affidavit and agreement (a “Transfer Affidavit and Agreement,” in the
      form attached hereto as Exhibit B-3) from the proposed Transferee, in form
      and
      substance satisfactory to the Securities Administrator, representing and
      warranting, among other things, that such Transferee is a Permitted Transferee,
      that it is not acquiring its Ownership Interest in the Residual Certificate
      that
      is the subject of the proposed Transfer as a nominee, trustee or agent for
      any
      Person that is not a Permitted Transferee, that for so long as it retains its
      Ownership Interest in a Residual Certificate, it will endeavor to remain a
      Permitted Transferee, and that it has reviewed the provisions of this
      Section 6.02(d) and agrees to be bound by them.

     

    (C) Notwithstanding
      the delivery of a Transfer Affidavit and Agreement by a proposed Transferee
      under clause (B) above, if an authorized officer of the Securities Administrator
      who is assigned to this transaction has actual knowledge that the proposed
      Transferee is not a Permitted Transferee, no Transfer of an Ownership Interest
      in a Residual Certificate to such proposed Transferee shall be
      effected.

     

    (D) Each
      Person holding or acquiring any Ownership Interest in a Residual Certificate
      shall agree (x) to require a Transfer Affidavit and Agreement from any other
      Person to whom such Person attempts to transfer its Ownership Interest in a
      Residual Certificate and (Y) not to transfer its Ownership Interest unless
      it
      provides a Transferor Affidavit (in the form attached hereto as Exhibit B-2)
      to
      the Securities Administrator stating that, among other things, it has no actual
      knowledge that such other Person is not a Permitted Transferee.

     

    (E) Each
      Person holding or acquiring an Ownership Interest in a Residual Certificate,
      by
      purchasing an Ownership Interest in such Certificate, agrees to give the
      Securities Administrator written notice that it is a “pass-through interest
      holder” within the meaning of temporary Treasury regulation
      Section 1.67-3T(a)(2)(i)(A) immediately upon acquiring an Ownership
      Interest in a Residual Certificate, if it is, or is holding an Ownership
      Interest in a Residual Certificate on behalf of, a “pass-through interest
      holder.”

     

    (ii)  The
      Securities Administrator will register the Transfer of any Residual Certificate
      only if it shall have received the Transfer Affidavit and Agreement and all
      of
      such other documents as shall have been reasonably required by the Securities
      Administrator as a condition to such registration. In addition, no Transfer
      of a
      Residual Certificate shall be made unless the Securities Administrator shall
      have received a representation letter from the Transferee of such Certificate
      to
      the effect that such Transferee is a Permitted Transferee.

     

    (iii)  (A)
      If
      any purported Transferee shall become a Holder of a Residual Certificate in
      violation of the provisions of this Section 6.02(d), then the last
      preceding Permitted Transferee shall be restored, to the extent permitted by
      law, to all rights as holder thereof retroactive to the date of registration
      of
      such Transfer of such Residual Certificate. The Securities Administrator shall
      be under no liability to any Person for any registration of Transfer of a
      Residual Certificate that is in fact not permitted by this Section 6.02(d)
      or for making any payments due on such Certificate to the holder thereof or
      for
      taking any other action with respect to such holder under the provisions of
      this
      Agreement.

     

    (B) If
      any
      purported Transferee shall become a holder of a Residual Certificate in
      violation of the restrictions in this Section 6.02(d) and to the extent
      that the retroactive restoration of the rights of the holder of such Residual
      Certificate as described in clause (iii)(A) above shall be invalid, illegal
      or
      unenforceable, then the Securities Administrator shall have the right, without
      notice to the holder or any prior holder of such Residual Certificate, to sell
      such Residual Certificate to a purchaser selected by the Securities
      Administrator on such terms as the Securities Administrator may choose. Such
      purported Transferee shall promptly endorse and deliver each Residual
      Certificate in accordance with the instructions of the Securities Administrator.
      Such purchaser may be the Securities Administrator itself or any Affiliate
      of
      the Securities Administrator. The proceeds of such sale, net of the commissions
      (which may include commissions payable to the Securities Administrator or its
      Affiliates), expenses and taxes due, if any, will be remitted by the Securities
      Administrator to such purported Transferee. The terms and conditions of any
      sale
      under this clause (iii)(B) shall be determined in the sole discretion of the
      Securities Administrator, and the Securities Administrator shall not be liable
      to any Person having an Ownership Interest in a Residual Certificate as a result
      of its exercise of such discretion.

     

    (iv)  The
      Securities Administrator shall make available to the Internal Revenue Service
      and those Persons specified by the REMIC Provisions all information necessary
      to
      compute any tax imposed (A) as a result of the Transfer of an Ownership Interest
      in a Residual Certificate to any Person who is a Disqualified Organization,
      including the information described in Treasury regulations sections
      1.860D-1(b)(5) and 1.860E-2(a)(5) with respect to the “excess inclusions” of
      such Residual Certificate and (B) as a result of any regulated investment
      company, real estate investment trust, common trust fund, partnership, trust,
      estate or organization described in Section 1381 of the Code that holds an
      Ownership Interest in a Residual Certificate having as among its record holders
      at any time any Person which is a Disqualified Organization. Reasonable
      compensation for providing such information may be charged or collected by
      the
      Securities Administrator.

     

    (v)  The
      provisions of this Section 6.02(d) set forth prior to this subsection (v)
      may be modified, added to or eliminated, provided that there shall have been
      delivered to the Securities Administrator at the expense of the party seeking
      to
      modify, add to or eliminate any such provision the following:

     

    (A) written
      notification from each Rating Agency to the effect that the modification,
      addition to or elimination of such provisions will not cause such Rating Agency
      to downgrade its then-current ratings of any Class of Certificates;
      and

     

    (B) an
      Opinion of Counsel, in form and substance satisfactory to the Securities
      Administrator, to the effect that such modification of, addition to or
      elimination of such provisions will not cause any Trust REMIC to cease to
      qualify as a REMIC and will not cause any Trust REMIC, as the case may be,
      to be
      subject to an entity-level tax caused by the Transfer of any Residual
      Certificate to a Person that is not a Permitted Transferee or a Person other
      than the prospective transferee to be subject to a REMIC-tax caused by the
      Transfer of a Residual Certificate to a Person that is not a Permitted
      Transferee.

     

    (e)  Subject
      to the preceding subsections, upon surrender for registration of transfer of
      any
      Certificate at any office or agency of the Securities Administrator maintained
      for such purpose pursuant to Section 9.11 of this Agreement, the Securities
      Administrator shall execute, authenticate and deliver, in the name of the
      designated Transferee or Transferees, one or more new Certificates of the same
      Class of a like aggregate Percentage Interest.

     

    (f)  At
      the
      option of the Holder thereof, any Certificate may be exchanged for other
      Certificates of the same Class with authorized denominations and a like
      aggregate Percentage Interest, upon surrender of such Certificate to be
      exchanged at any office or agency of the Securities Administrator maintained
      for
      such purpose pursuant to Section 9.11 of this Agreement. Whenever any
      Certificates are so surrendered for exchange, the Securities Administrator
      shall
      execute, authenticate and deliver, the Certificates which the Certificateholder
      making the exchange is entitled to receive. Every Certificate presented or
      surrendered for transfer or exchange shall (if so required by the Securities
      Administrator) be duly endorsed by, or be accompanied by a written instrument
      of
      transfer in the form satisfactory to the Securities Administrator duly executed
      by, the Holder thereof or his attorney duly authorized in writing. In addition,
      with respect to each Class R Certificate, the holder thereof may exchange,
      in
      the manner described above, such Class R Certificate for two separate
      certificates, each representing such holder's respective Percentage Interest
      in
      the Class R-I Interest and the Class R-II Interest, respectively, in each case
      that was evidenced by the Class R Certificate being exchanged.

     

    (g)  No
      service charge to the Certificateholders shall be made for any transfer or
      exchange of Certificates, but the Securities Administrator 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.

     

    (h)  All
      Certificates surrendered for transfer and exchange shall be canceled and
      destroyed by the Securities Administrator in accordance with its customary
      procedures.

     

    SECTION
      6.03  Mutilated,
      Destroyed, Lost or Stolen Certificates.

     

    If
      (i)
      any mutilated Certificate is surrendered to the Securities Administrator, or
      the
      Securities Administrator receives evidence to its satisfaction of the
      destruction, loss or theft of any Certificate and of the ownership thereof,
      and
      (ii) there is delivered to the Securities Administrator such security or
      indemnity as may be required by it to save it harmless, then, in the absence
      of
      actual knowledge by the Securities Administrator that such Certificate has
      been
      acquired by a protected purchaser, the Securities Administrator, shall execute,
      authenticate and deliver, in exchange for or in lieu of any such mutilated,
      destroyed, lost or stolen Certificate, a new Certificate of the same Class
      and
      of like denomination and Percentage Interest. Upon the issuance of any new
      Certificate under this Section, the Securities Administrator may require the
      payment of a sum sufficient to cover any tax or other governmental charge that
      may be imposed in relation thereto and any other expenses (including the fees
      and expenses of the Securities Administrator) connected therewith. Any
      replacement Certificate issued pursuant to this Section shall constitute
      complete and indefeasible evidence of ownership in the applicable REMIC created
      hereunder, as if originally issued, whether or not the lost, stolen or destroyed
      Certificate shall be found at any time.

     

    SECTION
      6.04  Persons
      Deemed Owners.

     

    The
      Depositor, the Servicers, the Trustee, the Master Servicer, the Securities
      Administrator and any agent of any of them 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 5.01 and for all other
      purposes whatsoever, and none of the Depositor, the Servicers, the Trustee,
      the
      Master Servicer, the Securities Administrator or any agent of any of them shall
      be affected by notice to the contrary.

     

    SECTION
      6.05  Certain
      Available Information.

     

    On
      or
      prior to the date of the first sale of any Class CE-1 Certificate, Class CE-2
      Certificate, Class P Certificate or Residual Certificate to an Independent
      third
      party, the Depositor shall provide to the Securities Administrator ten copies
      of
      any private placement memorandum or other disclosure document used by the
      Depositor in connection with the offer and sale of such Certificate. In
      addition, if any such private placement memorandum or disclosure document is
      revised, amended or supplemented at any time following the delivery thereof
      to
      the Securities Administrator, the Depositor promptly shall inform the Securities
      Administrator of such event and shall deliver to the Securities Administrator
      ten copies of the private placement memorandum or disclosure document, as
      revised, amended or supplemented. The Securities Administrator shall maintain
      at
      its office as set forth in Section 12.05 hereof and shall make available
      free of charge during normal business hours for review by any Holder of a
      Certificate or any Person identified to the Securities Administrator as a
      prospective transferee of a Certificate, originals or copies of the following
      items: (i) in the case of a Holder or prospective transferee of a Class CE-1
      Certificate, Class CE-2 Certificate, Class P Certificate or Residual
      Certificate, the related private placement memorandum or other disclosure
      document relating to such Class of Certificates, in the form most recently
      provided to the Securities Administrator; and (ii) in all cases, (A) this
      Agreement and any amendments hereof entered into pursuant to Section 12.01
      of this Agreement, (B) all monthly statements required to be delivered to
      Certificateholders of the relevant Class pursuant to Section 5.02 of this
      Agreement since the Closing Date, and all other notices, reports, statements
      and
      written communications delivered to the Certificateholders of the relevant
      Class
      pursuant to this Agreement since the Closing Date and (C) any copies of all
      Officers’ Certificates of a Servicer since the Closing Date delivered to the
      Master Servicer to evidence such Person’s determination that any P&I Advance
      or Servicing Advance was, or if made, would be a Nonrecoverable P&I Advance
      or Nonrecoverable Servicing Advance. Copies and mailing of any and all of the
      foregoing items will be available from the Securities Administrator upon request
      at the expense of the Person requesting the same.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      VII

     

    THE
      DEPOSITOR, OCWEN, WELLS FARGO AND THE MASTER SERVICER

     

    SECTION
      7.01  Liability
      of the Depositor, Ocwen, Wells Fargo and the Master Servicer.

     

    The
      Depositor, Ocwen, Wells Fargo and the Master Servicer each shall be liable
      in
      accordance herewith only to the extent of the obligations specifically imposed
      by this Agreement upon them in their respective capacities as Depositor,
      Servicer and Master Servicer and undertaken hereunder by the Depositor, the
      related Servicer and the Master Servicer herein.

     

    SECTION
      7.02  Merger
      or Consolidation of the Depositor, Ocwen, Wells Fargo or the Master
      Servicer.

     

    Subject
      to the following paragraph, the Depositor will keep in full effect its
      existence, rights and franchises as a corporation under the laws of the
      jurisdiction of its incorporation. Subject to the following paragraph, Ocwen
      will keep in full effect its existence, rights and franchises as a limited
      liability company and Wells Fargo will keep in full effect its existence, rights
      and franchises as a national banking association. Subject to the following
      paragraph, the Master Servicer will keep in full effect its existence, rights
      and franchises as a national banking association. The Depositor, Ocwen, Wells
      Fargo and the Master Servicer each will obtain and preserve its qualification
      to
      do business as a foreign entity 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
      respective duties under this Agreement.

     

    The
      Depositor, Ocwen, Wells Fargo or the Master Servicer may be merged or
      consolidated with or into any Person, or transfer all or substantially all
      of
      its assets to any Person, in which case any Person resulting from any merger
      or
      consolidation to which the Depositor, Ocwen, Wells Fargo or the Master Servicer
      shall be a party, or any Person succeeding to the business of the Depositor,
      such Servicer or the Master Servicer, shall be the successor of the Depositor,
      such Servicer or the Master 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 any successor to Ocwen, Wells Fargo or the Master Servicer shall
      meet the eligibility requirements set forth in clauses (i) and (iii) of the
      last
      paragraph of Section 8.02(a) or Section 7.06 of this
      Agreement.

     

    SECTION
      7.03  Limitation
      on Liability of the Depositor, Ocwen, Wells Fargo, the Master Servicer and
      Others.

     

    None
      of
      the Depositor, Ocwen, Wells Fargo, the Securities Administrator, the Master
      Servicer or any of the directors, officers, employees or agents of the
      Depositor, Ocwen, Wells Fargo or the Master Servicer shall be under any
      liability to the Trust Fund or 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 Ocwen, Wells Fargo, the Securities
      Administrator, the Master Servicer or any such person against any breach of
      warranties, representations or covenants made herein or against any specific
      liability imposed on any such Person pursuant hereto or against any liability
      which would otherwise be imposed by reason of willful misfeasance, bad faith
      or
      gross negligence in the performance of duties or by reason of reckless disregard
      of obligations and duties hereunder. The Depositor, Ocwen, Wells Fargo, the
      Securities Administrator, the Master Servicer and any director, officer,
      employee or agent of the Depositor, Ocwen, Wells Fargo, the Securities
      Administrator and the Master Servicer may rely in good faith on any document
      of
      any kind which, prima facie, is properly executed and submitted by any Person
      respecting any matters arising hereunder. The Depositor, Ocwen, Wells Fargo,
      the
      Securities Administrator, the Master Servicer and any director, officer,
      employee or agent of the Depositor, Ocwen, Wells Fargo, the Securities
      Administrator or the Master Servicer shall be indemnified and held harmless
      by
      the Trust Fund against any loss, liability or expense incurred in connection
      with any legal action relating to this Agreement, the Certificates or any Credit
      Risk Management Agreement or any loss, liability or expense incurred other
      than
      by reason of willful misfeasance, bad faith or gross negligence in the
      performance of duties hereunder or by reason of reckless disregard of
      obligations and duties hereunder. None of the Depositor, Ocwen, Wells Fargo,
      the
      Securities Administrator or the Master Servicer shall be under any obligation
      to
      appear in, prosecute or defend any legal action unless such action is related
      to
      its respective duties under this Agreement and, in its opinion, does not involve
      it in any expense or liability; provided, however, that each of the Depositor,
      Ocwen, Wells Fargo, the Securities Administrator and the Master Servicer may
      in
      its discretion undertake any such action which it may deem necessary or
      desirable with respect to this Agreement and the rights and duties of the
      parties hereto and the interests of the Certificateholders hereunder. In such
      event, the legal expenses and costs of such action and any liability resulting
      therefrom (except any loss, liability or expense incurred by reason of willful
      misfeasance, bad faith or gross negligence in the performance of duties
      hereunder or by reason of reckless disregard of obligations and duties
      hereunder) shall be expenses, costs and liabilities of the Trust Fund, and
      the
      Depositor, Ocwen, Wells Fargo, the Securities Administrator and the Master
      Servicer shall be entitled to be reimbursed therefor from the related Collection
      Account or the Distribution Account as and to the extent provided in Article
      III
      and Article IV of this Agreement, any such right of reimbursement being prior
      to
      the rights of the Certificateholders to receive any amount in the Collection
      Accounts and the Distribution Account.

     

    Notwithstanding
      anything to the contrary contained herein, Ocwen and Wells Fargo shall not
      be
      liable for any actions or inactions prior to the Cut-off Date of any prior
      servicer of the Mortgage Loans and the Master Servicer shall not be liable
      for
      any action or inaction of the Servicers, except to the extent expressly provided
      herein, or the Credit Risk Management Agreements.

     

    SECTION
      7.04  Limitation
      on Resignation of Ocwen and Wells Fargo.

     

    (a)  Except
      as
      expressly provided herein, Ocwen and Wells Fargo shall not assign all or
      substantially all of its rights under this Agreement or the servicing hereunder
      or delegate all or substantially all of its duties hereunder nor sell or
      otherwise dispose of all or substantially all of its property or assets without,
      in each case, the prior written consent of the Master Servicer, which consent
      shall not be unreasonably withheld; provided, that in each case, there must
      be
      delivered to the Trustee and the Master Servicer a letter from each Rating
      Agency to the effect that such transfer of servicing or sale or disposition
      of
      assets will not result in a qualification, withdrawal or downgrade of the
      then-current rating of any of the Certificates. Notwithstanding the foregoing,
      Ocwen and Wells Fargo, without the consent of the Trustee or the Master
      Servicer, may retain third-party contractors to perform certain servicing and
      loan administration functions, including without limitation hazard insurance
      administration, tax payment and administration, flood certification and
      administration, collection services and similar functions, provided, however,
      that the retention of such contractors by the related Servicer shall not limit
      the obligation of such Servicer to service the related Mortgage Loans pursuant
      to the terms and conditions of this Agreement. Neither Ocwen nor Wells Fargo
      shall resign from the obligations and duties hereby imposed on it except by
      consent of the Master Servicer or upon determination that its duties hereunder
      are no longer permissible under applicable law. Any such determination pursuant
      to the preceding sentence permitting the resignation of Ocwen or Wells Fargo
      shall be evidenced by an Opinion of Counsel to such effect obtained at the
      expense of the related Servicer and delivered to the Trustee and the Rating
      Agencies. No resignation of Ocwen or Wells Fargo shall become effective until
      the Master Servicer or a successor Servicer shall have assumed the related
      Servicer’s responsibilities, duties, liabilities (other than those liabilities
      arising prior to the appointment of such successor) and obligations under this
      Agreement.

     

    (b)  Except
      as
      expressly provided herein, neither Ocwen nor Wells Fargo shall assign or
      transfer any of its rights, benefits or privileges hereunder to any other
      Person, or delegate to or subcontract with, or authorize or appoint any other
      Person to perform any of the duties, covenants or obligations to be performed
      by
      the related Servicer hereunder. The foregoing prohibition on assignment shall
      not prohibit the related Servicer from designating a Sub-Servicer as payee
      of
      any indemnification amount payable to the related Servicer hereunder; provided,
      however, that as provided in Section 3.02 of this Agreement, no
      Sub-Servicer shall be a third-party beneficiary hereunder and the parties hereto
      shall not be required to recognize any Sub-Servicer as an indemnitee under
      this
      Agreement.

     

    SECTION
      7.05  Limitation
      on Resignation of the Master Servicer.

     

    The
      Master Servicer shall not resign from the obligations and duties hereby imposed
      on it except upon determination that its duties hereunder are no longer
      permissible under applicable law. Any such determination pursuant to the
      preceding sentence permitting the resignation of the Master Servicer shall
      be
      evidenced by an Opinion of Counsel to such effect obtained at the expense of
      the
      Master Servicer and delivered to the Trustee and the Rating Agencies. No
      resignation of the Master Servicer shall become effective until the Trustee
      or a
      successor Master Servicer meeting the criteria specified in Section 7.06 of
      this Agreement shall have assumed the Master Servicer’s responsibilities,
      duties, liabilities (other than those liabilities arising prior to the
      appointment of such successor) and obligations under this
      Agreement.

     

    SECTION
      7.06  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; provided,
      however, that: (i) the purchaser or transferee accept in writing such assignment
      and delegation and assume the obligations of the Master Servicer hereunder
      (a)
      shall have a net worth of not less than $25,000,000 (unless otherwise approved
      by each Rating Agency pursuant to clause (ii) below); (b) shall be reasonably
      satisfactory to the Trustee (as evidenced in a writing signed by the Trustee);
      and (c) 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 Trustee; and (iii) the
      Master Servicer assigning and selling the master servicing shall deliver to
      the
      Trustee an Officer’s Certificate and an Opinion of 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. No such assignment or delegation shall affect any liability
      of
      the Master Servicer arising out of acts or omissions prior to the effective
      date
      thereof.

     

    SECTION
      7.07  Rights
      of the Depositor in Respect of Ocwen, Wells Fargo and the Master
      Servicer.

     

    Each
      of
      the Master Servicer and any Servicer that is a party hereto shall afford (and
      any Sub-Servicing Agreement or sub-contracting agreement shall provide that
      each
      Sub-Servicer or Subcontractor, as applicable, shall afford) the Depositor and
      the Trustee, upon reasonable notice, during normal business hours, access to
      all
      records maintained by the Master Servicer or the related Servicer (and any
      such
      Sub-Servicer or Subcontractor, as applicable) in respect of the related
      Servicer’s rights and obligations hereunder and access to officers of the Master
      Servicer or such Servicer (and those of any such Sub-Servicer or Subcontractor,
      as applicable) responsible for such obligations, and the Master Servicer shall
      have access to all such records maintained by such Servicer and any
      Sub-Servicers or Subcontractors. Upon request, each of the Master Servicer
      and
      the related Servicer shall furnish to the Depositor and the Trustee its (and
      any
      such Sub-Servicer’s or Subcontractor’s) most recent financial statements and
      such other information relating to the Master Servicer’s or such Servicer’s
      capacity to perform its obligations under this Agreement as it possesses (and
      that any such Sub-Servicer or Subcontractor possesses). To the extent that
      the
      Master Servicer, Ocwen or Wells Fargo informs the Depositor and the Trustee
      that
      such information is not otherwise available to the public, the Depositor and
      the
      Trustee shall not disseminate any information obtained pursuant to the preceding
      two sentences without the Master Servicer’s or the related Servicer’s written
      consent, except as required pursuant to this Agreement or to the extent that
      it
      is appropriate to do so (i) to its legal counsel, auditors, taxing authorities
      or other governmental agencies and the Certificateholders, (ii) pursuant to
      any
      law, rule, regulation, order, judgment, writ, injunction or decree of any court
      or governmental authority having jurisdiction over the Depositor and the Trustee
      or the Trust Fund, and in any case, the Depositor or the Trustee, (iii)
      disclosure of any and all information that is or becomes publicly known, or
      information obtained by the Trustee from sources other than the Depositor,
      the
      related Servicer or the Master Servicer, (iv) disclosure as required pursuant
      to
      this Agreement or (v) disclosure of any and all information (A) in any
      preliminary or final offering circular, registration statement or contract
      or
      other document pertaining to the transactions contemplated by the Agreement
      approved in advance by the Depositor, the related Servicer or the Master
      Servicer or (B) to any affiliate, independent or internal auditor, agent,
      employee or attorney of the Trustee having a need to know the same, provided
      that the Trustee advises such recipient of the confidential nature of the
      information being disclosed, shall use its best efforts to assure the
      confidentiality of any such disseminated non-public information. Nothing in
      this
      Section 7.07 shall limit the obligation of Ocwen or Wells Fargo to comply
      with any applicable law prohibiting disclosure of information regarding the
      Mortgagors and the failure of Ocwen or Wells Fargo to provide access as provided
      in this Section 7.07 as a result of such obligation shall not constitute a
      breach of this Section. Nothing in this Section 7.07 shall require Ocwen or
      Wells Fargo to collect, create, collate or otherwise generate any information
      that it does not generate in its usual course of business. Ocwen and Wells
      Fargo
      shall not be required to make copies of or ship documents to any party unless
      provisions have been made for the reimbursement of the costs thereof. The
      Depositor may, but is not obligated to, enforce the obligations of the Master
      Servicer, Ocwen and Wells Fargo under this Agreement and may, but is not
      obligated to, perform, or cause a designee to perform, any defaulted obligation
      of the Master Servicer, Ocwen or Wells Fargo under this Agreement or exercise
      the rights of the Master Servicer, Ocwen or Wells Fargo under this Agreement;
      provided that none of the Master Servicer, Ocwen or Wells Fargo shall be
      relieved of any of its obligations under this Agreement by virtue of such
      performance by the Depositor or its designee. The Depositor shall not have
      any
      responsibility or liability for any action or failure to act by the Master
      Servicer, Ocwen or Wells Fargo and is not obligated to supervise the performance
      of the Master Servicer, Ocwen or Wells Fargo under this Agreement or
      otherwise.

     

    SECTION
      7.08  Duties
      of the Credit Risk Manager.

     

    For
      and
      on behalf of the Depositor, the Credit Risk Manager will provide reports and
      recommendations concerning certain delinquent and defaulted Mortgage Loans,
      and
      as to the collection of any Prepayment Charges with respect to the Mortgage
      Loans. Such reports and recommendations will be based upon information provided
      to the Credit Risk Manager pursuant to the Credit Risk Management Agreements,
      and the Credit Risk Manager shall look solely to the related Servicer and/or
      Master Servicer for all information and data (including loss and delinquency
      information and data) relating to the servicing of the related Mortgage Loans.
      Upon any termination of the Credit Risk Manager or the appointment of a
      successor Credit Risk Manager, the Depositor shall give written notice thereof
      to the related Servicer, the Master Servicer, the Securities Administrator,
      the
      Trustee, and each Rating Agency. Notwithstanding the foregoing, the termination
      of the Credit Risk Manager pursuant to this Section shall not become effective
      until the appointment of a successor Credit Risk Manager. The Trustee is hereby
      authorized to enter into any Credit Risk Management Agreement necessary to
      effect the foregoing.

     

    SECTION
      7.09  Limitation
      Upon Liability of the Credit Risk Manager.

     

    Neither
      the Credit Risk Manager, nor any of its directors, officers, employees, or
      agents 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 made in good faith pursuant to this Agreement, in reliance upon
      information provided by a Servicer and/or Master Servicer under the related
      Credit Risk Management Agreement, or for errors in judgment; provided, however,
      that this provision shall not protect the Credit Risk Manager or any such person
      against liability that would otherwise be imposed by reason of willful
      malfeasance or bad faith in its performance of its duties. The Credit Risk
      Manager and any director, officer, employee, or agent of the Credit Risk Manager
      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 or under
      the related Credit Risk Management Agreement, and may rely in good faith upon
      the accuracy of information furnished by a Servicer and/or Master Servicer
      pursuant to the related Credit Risk Management Agreement in the performance
      of
      its duties thereunder and hereunder. The Credit Risk Manager shall be held
      harmless and indemnified by the Trust Fund for any claims, costs or liability
      (each a “Claim”) arising out of or related in any way to the performance of its
      duties hereunder absent bad faith, willful misfeasance or gross negligence
      on
      the part of the Credit Risk Manager with respect to the applicable Claim and
      the
      legal expenses for any applicable Claim shall be expenses, costs and liabilities
      of the Trust Fund.

     

    SECTION
      7.10  Removal
      of the Credit Risk Manager.

     

    So
      long
      as Deutsche Bank Securities Inc. is the Holder of the Class CE-1 Certificate
      it
      may, at its option, terminate the Credit Risk Manager if the Credit Risk Manager
      breaches its obligations under the Credit Risk Management Agreements in any
      material respect and has not cured such breach as promptly as practicable but
      in
      no event later than 30 days after receiving written notice of such breach.
      In
      the event that a party other than Deutsche Bank Securities Inc. is the Holder
      of
      the Class CE-1 Certificate, the Holder of the Class CE-1 Certificate shall
      not
      have such termination right. In addition, the Credit Risk Manager may be removed
      as Credit Risk Manager under both Credit Risk Management Agreements by
      Certificateholders holding not less than 66 2/3% of the Voting Rights in the
      Trust Fund, in the exercise of its or their sole discretion. Upon the
      termination of the Credit Risk Manager by the Certificateholders or Deutsche
      Bank Securities Inc. as provided above, the Certificateholders or Deutsche
      Bank
      Securities Inc., as applicable, shall provide written notice of the Credit
      Risk
      Manager’s removal to the Trustee and the Servicers. Upon receipt of such notice,
      the Trustee shall provide written notice to the Credit Risk Manager of its
      removal, which shall be effective upon receipt of such notice by the Credit
      Risk
      Manager with a copy to the Securities Administrator and the Master
      Servicer.

     

    Upon
      the
      termination of the Credit Risk Manager by the Holder of the Class CE-1
      Certificate as provided above, the Holder of the Class CE-1 Certificate may,
      at
      its option, appoint a successor Credit Risk Manager. If the Holder of the Class
      CE-1 Certificate fails to appoint a successor Credit Risk Manager, the Depositor
      may appoint a successor Credit Risk Manager. Upon the termination of the Credit
      Risk Manager by the Certificateholders as provided above, the Depositor shall
      appoint a successor Credit Risk Manager. Notwithstanding the foregoing, the
      termination of the Credit Risk Manager pursuant to this Section shall not become
      effective until the appointment of a successor Credit Risk Manager.

     

    SECTION
      7.11  Transfer
      of Servicing by Sponsor.

     

    The
      Sponsor may, at its option, transfer the servicing responsibilities of each
      Servicer with respect to the related Mortgage Loans at any time without cause.
      No such transfer shall become effective unless and until a successor to the
      related Servicer shall have been appointed to service and administer the related
      Mortgage Loans pursuant to the terms and conditions of this Agreement. No
      appointment shall be effective unless (i) such successor meets the eligibility
      criteria set forth in Section 7.04 and (ii) all amounts reimbursable to such
      Servicer under this Agreement shall have been paid by the successor appointed
      pursuant to the terms of this Section 7.11 or by the Sponsor including without
      limitation, all unreimbursed P&I Advances and Servicing Advances made by
      such Servicer accrued and unpaid Servicing Fees and all out-of-pocket expenses
      of such Servicer incurred in connection with the transfer of servicing to such
      successor. The Sponsor shall provide a copy of the written confirmation of
      the
      Rating Agencies to the Trustee, the Securities Administrator and the Master
      Servicer. In connection with such appointment and assumption described herein,
      the Sponsor may make such arrangements for the compensation of such successor
      out of payments on Mortgage Loans as it and such successor shall agree;
      provided, however, that no such compensation shall be in excess of that
      permitted for the related Servicer hereunder. In addition, with respect to
      any
      successor servicer to Wells Fargo hereunder, such compensation shall not be
      in
      excess of the Servicing Fee Rate. The Sponsor shall take such action, consistent
      with this Agreement, as shall be necessary to effectuate any such
      succession.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      VIII

    DEFAULT

     

    SECTION
      8.01  Servicer
      Events of Default.

     

    (a)  “Servicer
      Event of Default,” wherever used herein, means with respect to Ocwen and Wells
      Fargo any one of the following events:

     

    (i)  any
      failure by the related Servicer to remit to the Securities Administrator for
      distribution to the Certificateholders any payment (other than a P&I Advance
      required to be made from its own funds on any Servicer Remittance Date pursuant
      to Section 5.03 of this Agreement) required to be made by the related
      Servicer under the terms of the Certificates and this Agreement which continues
      unremedied for a period of one (1) Business 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 Depositor or the Trustee (in which case
      notice shall be provided by telecopy), or to such Servicer, the Depositor and
      the Trustee by the Holders of Certificates entitled to at least 25% of the
      Voting Rights; or

     

    (ii)  any
      failure on the part of the related Servicer duly to observe or perform in any
      material respect any other of the covenants or agreements on the part of such
      Servicer contained in this Agreement, or the material breach by such Servicer
      of
      any representation and warranty contained in Section 2.05 of this
      Agreement, which continues unremedied for a period of thirty (30) days after
      the
      date on which written notice of such failure, requiring the same to be remedied,
      shall have been given to such Servicer by the Depositor or the Trustee or to
      such Servicer, the Depositor and the Trustee by the Holders of Certificates
      entitled to at least 25% of the Voting Rights; provided, however, that in the
      case of a failure that cannot be cured within thirty (30) days, the cure period
      may be extended for an additional thirty (30) days if the related Servicer
      can
      demonstrate to the reasonable satisfaction of the Trustee that such Servicer
      is
      diligently pursuing remedial action; or

     

    (iii)  a
      decree
      or order of a court or agency or supervisory authority having jurisdiction
      in
      the premises in an involuntary case under any present or future federal or
      state
      bankruptcy, insolvency or similar law or the appointment of a conservator or
      receiver or liquidator in any insolvency, readjustment of debt, marshalling
      of
      assets and liabilities or similar proceeding, or for the winding-up or
      liquidation of its affairs, shall have been entered against the related Servicer
      and such decree or order shall have remained in force undischarged or unstayed
      for a period of ninety (90) days; or

     

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

     

    (v)  the
      related Servicer shall admit in writing its inability to pay its debts generally
      as they become due, file a petition to take advantage of any applicable
      insolvency or reorganization statute, make an assignment for the benefit of
      its
      creditors, or voluntarily suspend payment of its obligations; or

     

    (vi)  failure
      by the related Servicer to duly perform, within the required time period, its
      obligations under Sections 3.17, 3.18 or 3.19; or

     

    (vii)  any
      failure of the related Servicer to make any P&I Advance on any Servicer
      Remittance Date required to be made from its own funds pursuant to
      Section 5.03 which continues unremedied until 3:00 p.m. New York time on
      the Business Day immediately following the Servicer Remittance Date;
      or

     

    (viii)  failure
      of the related Servicer to maintain at least an “average” rating from the Rating
      Agencies.

     

    A
      “Servicer Event of Default” whenever used herein means, with respect to SPS, an
      event of default by SPS under the Servicing Agreement.

     

    If
      a
      Servicer Event of Default described in clauses (a)(i) through (vi) or (viii)
      of
      this Section or a corresponding Servicer Event of Default under the
      Servicing Agreement shall occur, then, and in each and every such case, so
      long
      as such Servicer Event of Default shall not have been remedied, the Depositor
      or
      the Trustee may, and at the written direction of the Holders of Certificates
      entitled to at least 51% of Voting Rights, the Trustee shall, by notice in
      writing to the defaulting Servicer (and to the Depositor if given by the Trustee
      or to the Trustee if given by the Depositor) with a copy to the Master Servicer
      and each Rating Agency, terminate all of the rights and obligations of the
      defaulting Servicer in its capacity as a Servicer under this Agreement, to
      the
      extent permitted by law, and in and to the related Mortgage Loans and the
      proceeds thereof. If a Servicer Event of Default described in clause (vii)
      hereof or the corresponding Servicer Event of Default under the Servicing
      Agreement shall occur, the Trustee shall, by notice in writing to the defaulting
      Servicer, the Depositor and the Master Servicer, terminate all of the rights
      and
      obligations of the defaulting Servicer in its capacity as a Servicer under
      this
      Agreement and in and to the related Mortgage Loans and the proceeds thereof.
      Subject to Section 8.02 of this Agreement, on or after the receipt by the
      defaulting Servicer of such written notice, all authority and power of the
      defaulting Servicer under this Agreement or the Servicing Agreement, as
      applicable, whether with respect to the Certificates (other than as a Holder
      of
      any Certificate) or the related Mortgage Loans or otherwise, shall pass to
      and
      be vested in the Master Servicer or, with respect to a default by Wells Fargo,
      to a successor Servicer appointed by the Trustee pursuant to and under this
      Section, and, without limitation, the Master Servicer is hereby authorized
      and
      empowered, as attorney-in-fact or otherwise, to execute and deliver, on behalf
      of and at the expense of the defaulting Servicer, 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. The defaulting Servicer agrees
      promptly (and in any event no later than ten Business Days subsequent to such
      notice) to provide the Master Servicer or other successor Servicer with all
      documents and records requested by it to enable it to assume such Servicer’s
      functions under this Agreement, and to cooperate with the Master Servicer or,
      with respect to Wells Fargo, the Trustee in effecting the termination of the
      defaulting Servicer’s responsibilities and rights under this Agreement,
      including, without limitation, the transfer within one Business Day to the
      Master Servicer or other successor Servicer for administration by it of all
      cash
      amounts which at the time shall be or should have been credited by the
      defaulting Servicer to the related Collection Account held by or on behalf
      of
      such Servicer or thereafter be received with respect to the related Mortgage
      Loans or any related REO Property (provided, however, that the defaulting
      Servicer shall continue to be entitled to receive all amounts accrued or owing
      to it under this Agreement on or prior to the date of such termination, whether
      in respect of P&I Advances, Servicing Advances, accrued and unpaid Servicing
      Fees or otherwise, and shall continue to be entitled to the benefits of
      Section 7.03 of this Agreement, notwithstanding any such termination, with
      respect to events occurring prior to such termination). Reimbursement of
      unreimbursed P&I Advances, Servicing Advances and accrued and unpaid
      Servicing Fees shall be made on a first in, first out (“FIFO”) basis no later
      than the Servicer Remittance Date. For purposes of this Section 8.01(a),
      the Trustee shall not be deemed to have knowledge of a Servicer Event of Default
      unless a Responsible Officer of the Trustee assigned to and working in the
      Trustee’s Corporate Trust Office has actual knowledge thereof or unless written
      notice of any event which is in fact such a Servicer Event of Default is
      received by the Trustee at its Corporate Trust Office and such notice references
      the Certificates, the Trust or this Agreement. The Trustee shall promptly notify
      the Master Servicer and the Rating Agencies of the occurrence of a Servicer
      Event of Default of which it has knowledge as provided above.

     

    The
      Master Servicer, any other successor servicer and the Trustee shall be entitled
      to be reimbursed by the defaulting Servicer (or from amounts on deposit in
      the
      Distribution Account if the defaulting Servicer is unable to fulfill its
      obligations hereunder) for all reasonable out-of-pocket or third party costs
      associated with the transfer of servicing from the predecessor Servicer (or
      if
      the predecessor Servicer is the Master Servicer, from the Servicer immediately
      preceding the Master Servicer), including without limitation, any reasonable
      out-of-pocket or third party costs or expenses associated with the complete
      transfer of all servicing data and the completion, correction or manipulation
      of
      such servicing data as may be required by the Master Servicer to correct any
      errors or insufficiencies in the servicing data or otherwise to enable the
      Master Servicer to service the Mortgage Loans properly and effectively, upon
      presentation of reasonable documentation of such costs and
      expenses.

     

    (b)  “Master
      Servicer Event of Default,” wherever used herein, means any one of the following
      events:

     

    (i)  any
      failure on the part of the Master Servicer duly to observe or perform in any
      material respect any other of the covenants or agreements on the part of the
      Master Servicer contained in this Agreement, or the breach by the Master
      Servicer of any representation and warranty contained in Section 2.04,
      which continues unremedied for a period of 30 days after the date on which
      written notice of such failure, requiring the same to be remedied, shall have
      been given to the Master Servicer by the Depositor or the Trustee or to the
      Master Servicer, the Depositor and the Trustee by the Holders of Certificates
      entitled to at least 25% of the Voting Rights; or

     

    (ii)  a
      decree
      or order of a court or agency or supervisory authority having jurisdiction
      in
      the premises in an involuntary case under any present or future federal or
      state
      bankruptcy, insolvency or similar law or the appointment of a conservator or
      receiver or liquidator in any insolvency, readjustment of debt, marshalling
      of
      assets and liabilities or similar proceeding, or for the winding-up or
      liquidation of its affairs, shall have been entered against the Master Servicer
      and such decree or order shall have remained in force undischarged or unstayed
      for a period of ninety (90) days; or

     

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

     

    (iv)  the
      Master Servicer shall admit in writing its inability to pay its debts generally
      as they become due, file a petition to take advantage of any applicable
      insolvency or reorganization statute, make an assignment for the benefit of
      its
      creditors, or voluntarily suspend payment of its obligations; or

     

    (v)  failure
      by the Master Servicer to duly perform, within the required time period, its
      obligations under Sections 4.15, 4.16, 4.17 and 4.18.

     

    If
      a
      Master Servicer Event of Default shall occur, then, and in each and every such
      case, so long as such Master Servicer Event of Default shall not have been
      remedied, the Depositor or the Trustee may, and at the written direction of
      the
      Holders of Certificates entitled to at least 51% of Voting Rights, the Trustee
      shall, by notice in writing to the Master Servicer (and to the Depositor if
      given by the Trustee or to the Trustee if given by the Depositor) with a copy
      to
      each Rating Agency, terminate all of the rights and obligations of the Master
      Servicer in its capacity as Master Servicer under this Agreement, to the extent
      permitted by law, and in and to the Mortgage Loans and the proceeds thereof.
      On
      or after the receipt by the Master Servicer of such written notice, all
      authority and power of the Master Servicer under this Agreement, whether with
      respect to the Certificates (other than as a Holder of any Certificate) or
      the
      Mortgage Loans or otherwise including, without limitation, the compensation
      payable to the Master Servicer under this Agreement, shall pass to and be vested
      in the Trustee pursuant to and under this Section, and, without limitation,
      the
      Trustee is hereby authorized and empowered, as attorney-in-fact or otherwise,
      to
      execute and deliver, on behalf of and at the expense of the Master Servicer,
      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 promptly (and in any event no later than ten Business Days subsequent
      to
      such notice) to provide the Trustee with all documents and records requested
      by
      it to enable it to assume the Master Servicer’s functions under this Agreement,
      and to cooperate with the Trustee in effecting the termination of the Master
      Servicer’s responsibilities and rights under this Agreement (provided, however,
      that the Master Servicer shall continue to be entitled to receive all amounts
      accrued or owing to it under this Agreement on or prior to the date of such
      termination and shall continue to be entitled to the benefits of
      Section 7.03 of this Agreement, notwithstanding any such termination, with
      respect to events occurring prior to such termination). For purposes of this
      Section 8.01(b), the Trustee shall not be deemed to have knowledge of a
      Master Servicer Event of Default unless a Responsible Officer of the Trustee
      assigned to and working in the Trustee’s Corporate Trust Office has actual
      knowledge thereof or unless written notice of any event which is in fact such
      a
      Master Servicer Event of Default is received by the Trustee and such notice
      references the Certificates, the Trust or this Agreement. The Trustee shall
      promptly notify the Rating Agencies of the occurrence of a Master Servicer
      Event
      of Default of which it has knowledge as provided above.

     

    To
      the
      extent that the costs and expenses of the Trustee related to the termination
      of
      the Master Servicer, appointment of a successor Master Servicer or the transfer
      and assumption of the master servicing by the Trustee (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
      Master Servicer as a result of a Master Servicer Event of Default and (ii)
      all
      costs and expenses associated with the complete transfer of the master
      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 Master Servicer to correct any errors or insufficiencies in
      the
      servicing data or otherwise to enable the successor Master Servicer to master
      service the Mortgage Loans in accordance with this Agreement) are not fully
      and
      timely reimbursed by the terminated Master Servicer, the Trustee shall be
      entitled to reimbursement of such costs and expenses from the Distribution
      Account.

     

    Neither
      the Trustee nor any other successor master servicer shall be deemed to be in
      default hereunder by reason of any failure to make, or any delay in making,
      any
      distribution hereunder or any portion thereof or any failure to perform, or
      any
      delay in performing, any duties or responsibilities hereunder, in either case
      caused by the failure of the Master Servicer to deliver or provide, or any
      delay
      in delivering or providing, any cash, information, documents or records to
      it.

     

    Notwithstanding
      the foregoing, the Trustee may, if it shall be unwilling to continue to act,
      or
      shall, if it is unable to so act, petition a court of competent jurisdiction
      to
      appoint, or appoint on its own behalf, any established housing and home finance
      institution servicer, master servicer, servicing or mortgage servicing
      institution having a net worth of not less than $25,000,000 and meeting such
      other standards for a successor master servicer as are set forth in this
      Agreement, as the successor to such Master Servicer in the assumption of all
      of
      the responsibilities, duties or liabilities of a master servicer.

     

    SECTION
      8.02  Master
      Servicer to Act; Appointment of Successor.

     

    (a)  On
      and
      after the time a Servicer receives a notice of termination, the Master Servicer
      or other successor Servicer as appointed by the Trustee shall be the successor
      in all respects to such Servicer in its capacity as a Servicer under this
      Agreement or the Servicing Agreement, as applicable, and the transactions set
      forth or provided for herein or therein, and all the responsibilities, duties
      and liabilities relating thereto and arising thereafter shall be assumed by
      the
      Master Servicer or such successor Servicer (except for any representations
      or
      warranties of the related Servicer under this Agreement or the Servicing
      Agreement, as applicable, the responsibilities, duties and liabilities contained
      in Section 2.03 of this Agreement and the obligation to deposit amounts in
      respect of losses pursuant to Section 3.10(b) of this Agreement) by the
      terms and provisions hereof including, without limitation, the related
      Servicer’s obligations to make P&I Advances pursuant to Section 5.03 of
      this Agreement or pursuant to the Servicing Agreement; provided that the Trustee
      shall be obligated to make P&I Advances in connection with the Wells Fargo
      Mortgage Loans in the event Wells Fargo is terminated as Servicer hereunder;
      provided, further, that if the Master Servicer, the Trustee or other successor
      servicer, is prohibited by law or regulation from obligating itself to make
      advances regarding delinquent mortgage loans, then the Master Servicer, the
      Trustee or other successor servicer shall not be obligated to make P&I
      Advances pursuant to Section 5.03 of this Agreement or pursuant to the
      Servicing Agreement; and provided further, that any failure to perform such
      duties or responsibilities caused by the related Servicer’s failure to provide
      information required by Section 8.01 of this Agreement or under the
      Servicing Agreement shall not be considered a default by the Master Servicer
      as
      successor to such Servicer hereunder; provided, however, that (1) it is
      understood and acknowledged by the parties hereto that there will be a period
      of
      transition (not to exceed ninety (90) days) before the actual servicing
      functions can be fully transferred to the Master Servicer or any successor
      Servicer appointed in accordance with the following provisions and (2) any
      failure to perform such duties or responsibilities caused by the related
      Servicer’s failure to provide information required by Section 8.01 of this
      Agreement or under the Servicing Agreement shall not be considered a default
      by
      the Master Servicer as successor to such Servicer. As compensation therefor,
      the
      Master Servicer or other successor servicer, as applicable, shall be entitled
      to
      the Servicing Fee and all funds relating to the Mortgage Loans to which the
      terminated Servicer would have been entitled if it had continued to act
      hereunder or under the Servicing Agreement. Notwithstanding the above and
      subject to the immediately following paragraph, the Master Servicer may, if
      it
      shall be unwilling to so act, or shall, if it is unable to so act promptly
      appoint or petition a court of competent jurisdiction to appoint, a Person
      that
      satisfies the eligibility criteria set forth below as the successor to the
      terminated Servicer under this Agreement or under the Servicing Agreement in
      the
      assumption of all or any part of the responsibilities, duties or liabilities
      of
      the related Servicer under this Agreement or under the Servicing
      Agreement.

     

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

     

    Any
      successor Servicer appointed under this Agreement must (i) be an established
      mortgage loan servicing institution that is a Fannie Mae and Freddie Mac
      approved seller/servicer, (ii) be approved by each Rating Agency by a written
      confirmation from each Rating Agency that the appointment of such successor
      Servicer would not result in the reduction or withdrawal of the then current
      ratings of any outstanding Class of Certificates, (iii) have a net worth of
      not
      less than $25,000,000 and (iv) assume all the responsibilities, duties or
      liabilities of the related Servicer (other than liabilities of the related
      Servicer hereunder incurred prior to termination of the related Servicer under
      Section 8.01 herein) under this Agreement as if originally named as a party
      to this Agreement.

     

    (b)  (1)
      All
      servicing transfer costs (including, without limitation, servicing transfer
      costs of the type described in Section 8.02(a) of this Agreement and
      incurred by the Trustee, the Master Servicer and any successor Servicer under
      paragraph (b)(2) below) in connection with the termination of a Servicer shall
      be paid by the terminated Servicer upon presentation of reasonable documentation
      of such costs, and if such predecessor or initial Servicer, as applicable,
      defaults in its obligation to pay such costs, the successor Servicer, the Master
      Servicer and the Trustee shall be entitled to reimbursement therefor from the
      assets of the Trust Fund.

     

    (2)
      No
      appointment of a successor to a Servicer under this Agreement shall be effective
      until the assumption by the successor of all of such Servicer’s
      responsibilities, duties and liabilities hereunder. In connection with such
      appointment and assumption described herein, 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 that permitted the related Servicer
      as
      such hereunder or under the Servicing Agreement. The Depositor, the Trustee
      and
      such successor shall take such action, consistent with this Agreement, as shall
      be necessary to effectuate any such succession. Pending appointment of a
      successor to a Servicer under this Agreement, the Master Servicer shall act
      in
      such capacity as hereinabove provided.

     

    SECTION
      8.03  Notification
      to Certificateholders.

     

    (a)  Upon
      any
      termination of a Servicer or the Master Servicer pursuant to the Servicing
      Agreement or Section 8.01(a) or Section 8.01(b) of this Agreement, as
      applicable, or any appointment of a successor to a Servicer or the Master
      Servicer pursuant to the Servicing Agreement or Section 8.02 of this
      Agreement, as applicable, the Trustee shall give prompt written notice thereof
      to the Certificateholders at the expense of the Trust Fund at their respective
      addresses appearing in the Certificate Register.

     

    (b)  Not
      later
      than the later of sixty (60) days after the occurrence of any event, which
      constitutes or which, with notice or lapse of time or both, would constitute
      a
      Servicer Event of Default or a Master Servicer Event of Default or five (5)
      days
      after a Responsible Officer of the Trustee becomes aware of the occurrence
      of
      such an event, the Trustee shall transmit by mail to all Holders of Certificates
      notice of each such occurrence, unless such default or Servicer Event of Default
      or Master Servicer Event of Default shall have been cured or
      waived.

     

    SECTION
      8.04  Waiver
      of Servicer Events of Default.

     

    The
      Holders representing at least 66% of the Voting Rights evidenced by all Classes
      of Certificates affected by any default, Servicer Event of Default or Master
      Servicer Event of Default hereunder may waive such default, Servicer Event
      of
      Default or Master Servicer Event of Default; provided,
      however,
      that a
      Servicer Event of Default under clause (i) or (vii) of Section 8.01(a) of
      this Agreement may be waived only by all of the Holders of the Regular
      Certificates. Upon any such waiver of a default, Servicer Event of Default
      or
      Master Servicer Event of Default, such default, Servicer Event of Default or
      Master Servicer Event of Default shall cease to exist and shall be deemed to
      have been remedied for every purpose hereunder. No such waiver shall extend
      to
      any subsequent or other default, Servicer Event of Default or Master Servicer
      Event of Default or impair any right consequent thereon except to the extent
      expressly so waived.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      IX

     

    CONCERNING
      THE TRUSTEE AND THE SECURITIES ADMINISTRATOR

     

    SECTION
      9.01  Duties
      of Trustee and Securities Administrator.

     

    The
      Trustee, prior to the occurrence of a Master Servicer Event of Default and
      after
      the curing or waiver of all Master Servicer 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. During the
      continuance of a Master Servicer Event of Default, 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 its exercise as a prudent person would exercise
      or
      use under the circumstances in the conduct of such person’s own affairs. Any
      permissive right of the Trustee enumerated in this Agreement shall not be
      construed as a duty.

     

    Each
      of
      the Trustee and the Securities Administrator, upon receipt of all resolutions,
      certificates, statements, opinions, reports, documents, orders or other
      instruments furnished to it, which are specifically required to be furnished
      pursuant to any provision of this Agreement, shall examine them to determine
      whether they conform to the requirements of this Agreement. If any such
      instrument is found not to conform to the requirements of this Agreement in
      a
      material manner, the Trustee or the Securities Administrator, as the case may
      be, shall take such action as it deems appropriate to have the instrument
      corrected, and if the instrument is not corrected to its satisfaction, the
      Securities Administrator will provide notice to the Trustee thereof and the
      Trustee will provide notice to the Certificateholders.

     

    The
      Trustee shall promptly remit to the related Servicer any complaint, claim,
      demand, notice or other document (collectively, the “Notices”) delivered to the
      Trustee as a consequence of the assignment of any Mortgage Loan hereunder and
      relating to the servicing of the Mortgage Loans; provided than any such notice
      (i) is delivered to the Trustee at its Corporate Trust Office, (ii) is in
      writing and contains information sufficient to permit the Trustee to make a
      determination that the real property to which such document relates is a
      Mortgaged Property. The Trustee shall have no duty hereunder with respect to
      any
      Notice it may receive or which may be alleged to have been delivered to or
      served upon it unless such Notice is delivered to it or served upon it at its
      Corporate Trust Office and such Notice contains the information required
      pursuant to clause (ii) of the preceding sentence.

     

    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 misconduct; provided,
      however,
      that:

     

    (i)  Prior
      to
      the occurrence of a Master Servicer Event of Default, and after the curing
      or
      waiver of all such Master Servicer Events of Default which may have occurred
      with respect to the Trustee and at all times with respect to the Securities
      Administrator, the duties and obligations of the Trustee 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 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 or the Securities Administrator and, in the absence of bad faith on
      the
      part of the Trustee or the Securities Administrator, respectively, the Trustee
      or the Securities Administrator, respectively, may conclusively rely, as to
      the
      truth of the statements and the correctness of the opinions expressed therein,
      upon any certificates or opinions furnished to the Trustee or the Securities
      Administrator, respectively, that conform to the requirements of this
      Agreement;

     

    (ii)  Neither
      the Trustee nor the Securities Administrator shall be liable for an error of
      judgment made in good faith by a Responsible Officer or Responsible Officers
      of
      the Trustee or an officer or officers 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;
      and

     

    (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 direction of the Holders of Certificates entitled to at least 25%
      of
      the Voting Rights relating to the time, method and place of conducting any
      proceeding for any remedy available to the Trustee or the Securities
      Administrator or exercising any trust or power conferred upon the Trustee or
      the
      Securities Administrator under this Agreement.

     

    SECTION
      9.02  Certain
      Matters Affecting Trustee and Securities Administrator.

     

    (a)  Except
      as
      otherwise provided in Section 9.01 of this Agreement:

     

    (i)  Before
      taking any action hereunder, the Trustee and the Securities Administrator may
      request and 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 reasonably 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 of its
      selection and any advice of such counsel or any Opinion of Counsel shall be
      full
      and complete authorization and protection in respect of any action taken or
      suffered or omitted by it hereunder in good faith and in accordance with such
      advice or Opinion of Counsel;

     

    (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 or to
      institute, conduct or defend any litigation hereunder or in relation hereto
      at
      the request, order or direction of any of the Certificateholders, pursuant
      to
      the provisions of this Agreement, unless such Certificateholders shall have
      offered to the Trustee or the Securities Administrator, as the case may be,
      reasonable security or indemnity satisfactory to it against the costs, expenses
      and liabilities which may be incurred therein or thereby; nothing contained
      herein shall, however, relieve the Trustee of the obligation, upon the
      occurrence of a Master Servicer Event of Default (which has not been cured
      or
      waived), to exercise such of the rights and powers vested in it by this
      Agreement, and to use the same degree of care and skill in their exercise as
      a
      prudent person would exercise or use under the circumstances in the conduct
      of
      such person’s own affairs;

     

    (iv)  Neither
      the Trustee nor the Securities Administrator shall 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;

     

    (v)  Prior
      to
      the occurrence of a Master Servicer Event of Default hereunder and after the
      curing or waiver of all Master Servicer Events of Default which may have
      occurred with respect to the Trustee and at all times with respect to the
      Securities Administrator, 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 the Holders of Certificates entitled to at
      least 25% of the Voting Rights; provided,
      however,
      that if
      the payment within a reasonable time to the Trustee or the Securities
      Administrator of the costs, expenses or liabilities likely to be incurred by
      it
      in the making of such investigation is, in the opinion of the Trustee or the
      Securities Administrator, as applicable, not reasonably assured to the Trustee
      or the Securities Administrator by such Certificateholders, the Trustee or
      the
      Securities Administrator, as applicable, may require reasonable indemnity
      satisfactory to it against such expense, or liability from such
      Certificateholders as a condition to taking any such action;

     

    (vi)  The
      Trustee may execute any of the trusts or powers hereunder or perform any duties
      hereunder either directly or by or through agents or attorneys and the Trustee
      shall not be responsible for any misconduct or negligence on the part of any
      agent or attorney appointed with due care by it hereunder;

     

    (vii)  The
      Trustee shall not be liable for any loss resulting from (a) the investment
      of
      funds held in any Collection Account or the Custodial Account, (b) the
      investment of funds held in the Reserve Fund, (c) the investment of funds held
      in the Distribution Account or (d) the redemption or sale of any such investment
      as therein authorized;

     

    (viii)  The
      Trustee shall not be deemed to have notice of any default, Master Servicer
      Event
      of Default or Servicer Event of Default unless a Responsible Officer of the
      Trustee has actual knowledge thereof or unless written notice of any event
      which
      is in fact such a default is received by a Responsible Officer of the Trustee
      at
      the Corporate Trust Office of the Trustee, and such notice references the
      Certificates and this Agreement; and

     

    (ix)  The
      rights, privileges, protections, immunities and benefits given to the Trustee,
      including, without limitation, its right to be indemnified, are extended to,
      and
      shall be enforceable by, each agent, custodian and other Person employed to
      act
      hereunder.

     

    (b)  All
      rights of action under this Agreement or under any of the Certificates,
      enforceable by the Trustee, may be enforced by it without the possession of
      any
      of the Certificates, or the production thereof at the trial or other proceeding
      relating thereto, and any such suit, action or proceeding instituted by the
      Trustee shall be brought in its name for the benefit of all the Holders of
      such
      Certificates, subject to the provisions of this Agreement.

     

    (c)  [Reserved].

     

    (d)  None
      of
      the Securities Administrator, the Master Servicer, the Servicers, the Sponsor,
      the Depositor, the Custodians or the Trustee shall be responsible for the acts
      or omissions of the others, it being understood that this Agreement shall not
      be
      construed to render those partners joint venturers or agents of one
      another.

     

    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
      of
      the Securities Administrator, the authentication of the Securities Administrator
      on the Certificates, the acknowledgments of the Trustee contained in Article
      II
      and the representations and warranties of the Trustee in Section 9.12 of
      this Agreement) shall be taken as the statements of the Depositor and neither
      the Trustee nor the Securities Administrator assumes any responsibility for
      their correctness. Neither the Trustee nor the Securities Administrator makes
      any representations or warranties as to the validity or sufficiency of this
      Agreement (other than as specifically set forth in Section 9.12 of this
      Agreement) or of the Certificates (other than the signature of the Securities
      Administrator and authentication of the Securities Administrator on the
      Certificates) or of any Mortgage Loan or related document. The Trustee and
      the
      Securities Administrator shall not be accountable for the use or application
      by
      the Depositor of any of the Certificates or of the proceeds of such
      Certificates, or for the use or application of any funds paid to the Depositor
      or the Master Servicer in respect of the Mortgage Loans or deposited in or
      withdrawn from any Collection Account or the Custodial Account by the related
      Servicer, other than with respect to the Securities Administrator any funds
      held
      by it or on behalf of the Trustee in accordance with Section 3.23 and
      Section 3.24 of this Agreement.

     

    SECTION
      9.04  Trustee
      and Securities Administrator May Own Certificates.

     

    Each
      of
      the Trustee and the Securities Administrator in its individual capacity or
      any
      other capacity may become the owner or pledgee of Certificates and may transact
      business with other interested parties and their Affiliates with the same rights
      it would have if it were not Trustee or the Securities
      Administrator.

     

    SECTION
      9.05  Fees
      and Expenses of Trustee, Custodians and Securities
      Administrator.

     

    The
      fees
      of the Trustee and the Securities Administrator hereunder and of Wells Fargo
      Bank, National Association as the Custodian under the Wells Fargo Custodial
      Agreement and of DBNTC as the Custodian under the DBNTC Custodial Agreement
      shall be paid in accordance with a side letter agreement with the Master
      Servicer and at the sole expense of the Master Servicer. In addition, the
      Trustee, the Securities Administrator, the Custodians and any director, officer,
      employee or agent of the Trustee, the Securities Administrator and the
      Custodians shall be indemnified by the Trust and held harmless against any
      loss,
      liability or expense (including reasonable attorney’s fees and expenses)
      incurred by the Trustee, the Custodians or the Securities Administrator in
      connection with any claim or legal action or any pending or threatened claim
      or
      legal action arising out of or in connection with the acceptance or
      administration of its respective obligations and duties under this Agreement,
      including any and all other agreements related hereto, other than any loss,
      liability or expense, as applicable (i) solely with respect to the Trustee,
      for
      which the Trustee is indemnified by the Master Servicer or any Servicer, (ii)
      that constitutes a specific liability of the Trustee or the Securities
      Administrator, as applicable, pursuant to Section 11.01(g) of this
      Agreement or (iii) any loss, liability or expense incurred by reason of willful
      misfeasance, bad faith or negligence in the performance of duties hereunder
      by
      the Trustee or the Securities Administrator, as applicable, or by reason of
      reckless disregard of its obligations and duties hereunder.
      In no
      event shall the Trustee, the Custodians, the Master Servicer 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 it
      has
      been advised of the likelihood of such loss or damage and regardless of the
      form
      of action. The Master Servicer agrees to indemnify the Trustee, from, and hold
      the Trustee harmless against, any loss, liability or expense (including
      reasonable attorney’s fees and expenses) incurred by the Trustee by reason of
      the Master Servicer’s willful misfeasance, bad faith or gross negligence in the
      performance of its duties under this Agreement or by reason of the Master
      Servicer’s reckless disregard of its obligations and duties under this
      Agreement. In addition, the Sponsor agrees to indemnify the Trustee for, and
      to
      hold the Trustee harmless against, any loss, liability or expense arising out
      of, or in connection with, the provisions set forth in the last paragraph of
      Section 2.01 of this Agreement, including, without limitation, all costs,
      liabilities and expenses (including reasonable legal fees and expenses) of
      investigating and defending itself against any claim, action or proceeding,
      pending or threatened, relating to the provisions of such paragraph. The
      indemnities in this Section 9.05 shall survive the termination or discharge
      of this Agreement and the resignation or removal of the Master Servicer, the
      Trustee, the Securities Administrator or the Custodians. Any payment under
      this
      Section 9.05 made by the Master Servicer to the Trustee in respect of the
      Trustee’s fees or the Master Servicer’s indemnification obligation to the
      Trustee shall be from the Master Servicer’s own funds, without reimbursement
      from REMIC I therefor.

     

    SECTION
      9.06  Eligibility
      Requirements for Trustee and Securities Administrator.

     

    The
      Trustee and the Securities Administrator shall at all times be a corporation
      or
      an association (other than the Depositor, the Sponsor, the Master Servicer
      or
      any Affiliate of the foregoing) organized and doing business under the laws
      of
      any 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 (or a member of a bank holding company whose capital and
      surplus is at least $50,000,000) and subject to supervision or examination
      by
      federal or state authority. If such corporation or association publishes reports
      of conditions at least annually, pursuant to law or to the requirements of
      the
      aforesaid supervising or examining authority, then for the purposes of this
      Section 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 conditions so published. In case at any time the Trustee or
      the
      Securities Administrator, as applicable, shall cease to be eligible in
      accordance with the provisions of this Section, the Trustee or the Securities
      Administrator, as applicable, shall resign immediately in the manner and with
      the effect specified in Section 9.07 of this Agreement.

     

    Additionally,
      the Securities Administrator (i) may not be an originator, Master Servicer,
      Servicer, the Depositor or an affiliate of the Depositor unless the Securities
      Administrator is in an institutional trust department, (ii) must be authorized
      to exercise corporate trust powers under the laws of its jurisdiction of
      organization, and (iii) must be rated at least "A/F1" by Fitch, if Fitch is
      a
      Rating Agency, or the equivalent rating by S&P (or such rating acceptable to
      Fitch pursuant to a rating confirmation). If no successor securities
      administrator shall have been appointed and shall have accepted appointment
      within 60 days after Wells Fargo Bank, National Association, as Securities
      Administrator, ceases to be the securities administrator pursuant to this
      Section 9.06, then the Trustee shall petition any court of competent
      jurisdiction, at the expense of the Trust Fund, for the appointment of a
      successor securities administrator. The Trustee shall notify the Rating Agencies
      of any change of Securities Administrator. 

     

    SECTION
      9.07  Resignation
      and Removal of Trustee and Securities Administrator.

     

    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
      Depositor, to the Master Servicer, to the Securities Administrator (or the
      Trustee, if the Securities Administrator resigns) and to the Certificateholders.
      Upon receiving such notice of resignation, the Depositor shall promptly appoint
      a successor trustee or successor securities administrator by written instrument,
      in duplicate, which instrument shall be delivered to the resigning Trustee
      or
      Securities Administrator, as applicable, and to the successor trustee or
      successor securities administrator, as applicable. A copy of such instrument
      shall be delivered to the Certificateholders, the Trustee, the Securities
      Administrator and the Master Servicer by the Depositor. If no successor trustee
      or successor securities administrator shall have been so appointed and have
      accepted appointment within thirty (30) days after the giving of such notice
      of
      resignation, the resigning Trustee or Securities Administrator, as the case
      may
      be, may, at the expense of the Trust Fund, petition any court of competent
      jurisdiction for the appointment of a successor trustee, successor securities
      administrator, Trustee or Securities Administrator, as applicable.

     

    If
      at any
      time the Trustee or the Securities Administrator shall cease to be eligible
      in
      accordance with the provisions of Section 9.06 of this Agreement and shall
      fail to resign after written request therefor by the Depositor, or if at any
      time the Trustee or the Securities Administrator shall become incapable of
      acting, or shall be adjudged bankrupt or insolvent, or a receiver of the Trustee
      or the Securities Administrator or of its property shall be appointed, or any
      public officer shall take charge or control of the Trustee or the Securities
      Administrator or of its property or affairs for the purpose of rehabilitation,
      conservation or liquidation, then the Depositor may remove the Trustee or the
      Securities Administrator, as applicable and appoint a successor trustee or
      successor securities administrator, as applicable, by written instrument, in
      duplicate, which instrument shall be delivered to the Trustee or the Securities
      Administrator so removed and to the successor trustee or successor securities
      administrator. A copy of such instrument shall be delivered to the
      Certificateholders, the Trustee, the Securities Administrator and the Master
      Servicer by the Depositor.

     

    The
      Holders of Certificates entitled to at least 51% of the Voting Rights may at
      any
      time remove the Trustee or the Securities Administrator and appoint a successor
      trustee or successor securities administrator by written instrument or
      instruments, in triplicate, signed by such Holders or their attorneys-in-fact
      duly authorized, one complete set of which instruments shall be delivered to
      the
      Depositor, one complete set to the Trustee or the Securities Administrator
      so
      removed and one complete set to the successor so appointed. A copy of such
      instrument shall be delivered to the Certificateholders, the Trustee (in the
      case of the removal of the Securities Administrator), the Securities
      Administrator (in the case of the removal of the Trustee) and the Master
      Servicer by the Depositor.

     

    Any
      resignation or removal of the Trustee or the Securities Administrator and
      appointment of a successor trustee or successor securities administrator
      pursuant to any of the provisions of this Section shall not become effective
      until acceptance of appointment by the successor trustee or successor securities
      administrator, as applicable, as provided in Section 9.08.

     

    Notwithstanding
      anything to the contrary contained herein, the Master Servicer and the
      Securities Administrator shall at all times be the same Person.

     

    SECTION
      9.08  Successor
      Trustee or Securities Administrator.

     

    Any
      successor trustee or successor securities administrator appointed as provided
      in
      Section 9.07 of this Agreement shall execute, acknowledge and deliver to
      the Depositor and its predecessor trustee or predecessor securities
      administrator an instrument accepting such appointment hereunder, and thereupon
      the resignation or removal of the predecessor trustee or predecessor securities
      administrator shall become effective and such successor trustee or successor
      securities administrator without any further act, deed or conveyance, shall
      become fully vested with all the rights, powers, duties and obligations of
      its
      predecessor hereunder, with the like effect as if originally named as trustee
      or
      securities administrator herein. The predecessor trustee or predecessor
      securities administrator shall deliver to the successor trustee or successor
      securities administrator all Mortgage Loan Documents and related documents
      and
      statements to the extent held by it hereunder, as well as all monies, held
      by it
      hereunder, and the Depositor and the predecessor trustee or predecessor
      securities administrator 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 successor securities administrator
      all such rights, powers, duties and obligations.

     

    No
      successor trustee or successor securities administrator shall accept appointment
      as provided in this Section unless at the time of such acceptance such successor
      trustee or successor securities administrator shall be eligible under the
      provisions of Section 9.06 and the appointment of such successor trustee or
      successor securities administrator shall not result in a downgrading of any
      Class of Certificates by any Rating Agency, as evidenced by a letter from each
      Rating Agency.

     

    Upon
      acceptance of appointment by a successor trustee or successor securities
      administrator as provided in this Section, the Depositor shall mail notice
      of
      the succession of such trustee hereunder to all Holders of Certificates at
      their
      addresses as shown in the Certificate Register. If the Depositor fails to mail
      such notice within ten (10) days after acceptance of appointment by the
      successor trustee or successor securities administrator, the successor trustee
      or successor securities administrator shall cause such notice to be mailed
      at
      the expense of the Depositor.

     

    SECTION
      9.09  Merger
      or Consolidation of Trustee or Securities Administrator.

     

    Any
      corporation or association into which the Trustee or the Securities
      Administrator may be merged or converted or with which it may be consolidated
      or
      any corporation or association resulting from any merger, conversion or
      consolidation to which the Trustee or the Securities Administrator shall be
      a
      party, or any corporation or association succeeding to the business of the
      Trustee or the Securities Administrator shall be the successor of the Trustee
      or
      the Securities Administrator hereunder, provided such corporation or association
      shall be eligible under the provisions of Section 9.06 of this Agreement,
      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
      9.10  Appointment
      of Co-Trustee or Separate Trustee.

     

    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 REMIC I or property
      securing the same may at the time be located, the Trustee 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 REMIC
      I, and to vest in such Person or Persons, in such capacity, and for the benefit
      of the Holders of the Certificates, such title to REMIC I, or any part thereof,
      and, subject to the other provisions of this Section 9.10, such powers,
      duties, obligations, rights and trusts as the Trustee may consider necessary
      or
      desirable. No co-trustee or separate trustee hereunder shall be required to
      meet
      the terms of eligibility as a successor trustee under Section 9.06
      hereunder and no notice to Holders of Certificates of the appointment of
      co-trustee(s) or separate trustee(s) shall be required under Section 9.08
      hereof.

     

    In
      the
      case of any appointment of a co-trustee or separate trustee pursuant to this
      Section 9.10 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, except
      to the extent that under any law of any jurisdiction in which any particular
      act
      or acts are to be performed by the Trustee (whether as Trustee hereunder or
      as
      successor to a defaulting 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 REMIC
      I 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.

     

    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 trust
      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.

     

    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 or co-trustee.

     

    SECTION
      9.11  Appointment
      of Office or Agency.

     

    The
      Certificates may be surrendered for registration of transfer or exchange at
      the
      Securities Administrator’s office located at Sixth Street and Marquette Avenue,
      Minneapolis, Minnesota 55479, and presented for final distribution at the
      Corporate Trust Office of the Securities Administrator where notices and demands
      to or upon the Securities Administrator in respect of the Certificates and
      this
      Agreement may be served.

     

    SECTION
      9.12  Representations
      and Warranties.

     

    The
      Trustee hereby represents and warrants to the Master Servicer, the Securities
      Administrator, the Servicers and the Depositor as applicable, as of the Closing
      Date, that:

     

    (i)  It
      is a
      national banking association duly organized, validly existing and in good
      standing under the laws of the United States of America.

     

    (ii)  The
      execution and delivery of this Agreement by it, and the performance and
      compliance with the terms of this Agreement by it, will not violate its articles
      of association or bylaws or constitute a default (or an event which, with notice
      or lapse of time, or both, would constitute a default) under, or result in
      the
      breach of, any material agreement or other instrument to which it is a party
      or
      which is applicable to it or any of its assets.

     

    (iii)  It
      has
      the full power and authority to enter into and consummate all transactions
      contemplated by this Agreement, has duly authorized the execution, delivery
      and
      performance of this Agreement, and has duly executed and delivered this
      Agreement.

     

    (iv)  This
      Agreement, assuming due authorization, execution and delivery by the other
      parties hereto, constitutes a valid, legal and binding obligation of it,
      enforceable against it in accordance with the terms hereof, subject to (A)
      applicable bankruptcy, insolvency, receivership, reorganization, moratorium
      and
      other laws affecting the enforcement of creditors’ rights generally, and (B)
      general principles of equity, regardless of whether such enforcement is
      considered in a proceeding in equity or at law.

     

    (v)  It
      is not
      in violation of, and its execution and delivery of this Agreement and its
      performance and compliance with the terms of this Agreement will not constitute
      a violation of, any law, any order or decree of any court or arbiter, or any
      order, regulation or demand of any federal, state or local governmental or
      regulatory authority, which violation, in its good faith and reasonable
      judgment, is likely to affect materially and adversely either the ability of
      it
      to perform its obligations under this Agreement or its financial
      condition.

     

    (vi)  No
      litigation is pending or, to the best of its knowledge, threatened against
      it,
      which would prohibit it from entering into this Agreement or, in its good faith
      reasonable judgment, is likely to materially and adversely affect either the
      ability of it to perform its obligations under this Agreement or its financial
      condition.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      X

     

    TERMINATION

     

    SECTION
      10.01  Termination
      Upon Repurchase or Liquidation of All Mortgage Loans.

     

    (a)  Subject
      to Section 10.02 of this Agreement, the respective obligations and
      responsibilities under this Agreement of the Depositor, the Master Servicer,
      the
      Securities Administrator, the Servicers and the Trustee (other than the
      obligations of the Master Servicer to the Trustee pursuant to Section 9.05
      of this Agreement and of the Servicers to make remittances to the Securities
      Administrator and the Securities Administrator to make payments in respect
      of
      the REMIC I Regular Interests, REMIC I Regular Interests or the Classes of
      Certificates as hereinafter set forth) shall terminate upon payment to the
      Certificateholders and the deposit of all amounts held by or on behalf of the
      Trustee and required hereunder to be so paid or deposited on the Distribution
      Date coinciding with or following the earlier to occur of (i) the purchase
      by
      the Terminator (as defined below) of all Mortgage Loans and each REO Property
      remaining in REMIC I and (ii) the final payment or other liquidation (or any
      advance with respect thereto) of the last Mortgage Loan or REO Property
      remaining in REMIC I; provided,
      however,
      that in
      no event shall the trust created hereby continue beyond the earlier of (a)
      the
      expiration of 21 years from the death of the last survivor of the descendants
      of
      Joseph P. Kennedy, the late ambassador of the United States to the Court of
      St.
      James, living on the date hereof and (b) the Last Scheduled Distribution Date.
      The purchase by the Terminator (defined below) of all Mortgage Loans and each
      REO Property remaining in REMIC I shall be at a price (the “Termination Price”)
      equal to the sum of (i) the greater of (A) the aggregate Purchase Price of
      all
      the Mortgage Loans included in REMIC I, plus the appraised value of each REO
      Property, if any, included in REMIC I, such appraisal to be conducted by an
      appraiser mutually agreed upon by the Master Servicer and the Trustee in their
      reasonable discretion and (B) the aggregate fair market value of all of the
      assets of REMIC I (as determined by the Master Servicer, as of the close of
      business on the third Business Day next preceding the date upon which notice
      of
      any such termination is furnished to Certificateholders pursuant to the third
      paragraph of this Section 10.01) plus (ii) any amounts due the Servicers
      and the Master Servicer in respect of unpaid Servicing Fees and outstanding
      P&I Advances and Servicing Advances.

     

    (b)  The
      Master Servicer or, if the Master Servicer fails to exercise such optional
      termination right, Ocwen (either the Master Servicer or Ocwen, the “Terminator”)
      shall have the right to purchase all of the Mortgage Loans and each REO Property
      remaining in REMIC I pursuant to clause (i) of the preceding paragraph no later
      than the Determination Date in the month immediately preceding the Distribution
      Date on which the Certificates will be retired; provided, however, that the
      Terminator may elect to purchase all of the Mortgage Loans and each REO Property
      remaining in REMIC I pursuant to clause (i) above only if the aggregate
      Scheduled Principal Balance of the Mortgage Loans and each REO Property
      remaining in the Trust Fund at the time of such election is reduced to less
      than
      or equal to 10% of the aggregate Scheduled Principal Balance of the Mortgage
      Loans as of the Cut-off Date. By acceptance of the Residual Certificates, the
      Holder of the Residual Certificates agrees, in connection with any termination
      hereunder, to assign and transfer any portion of the Termination Price in excess
      of par, and to the extent received in respect of such termination, to pay any
      such amounts to the Holders of the Class CE-1 Certificates. Notwithstanding
      the
      foregoing, the optional termination right may only be exercised by Ocwen if
      (1)
      Ocwen receives written notification from the Master Servicer that the Master
      Servicer will not exercise such optional termination right or (2) Ocwen does
      not
      receive such written notification from the Master Servicer, and the Master
      Servicer fails to exercise its optional termination right by the third
      Distribution Date following the date such right became exercisable; provided,
      however, in no event shall Ocwen exercise its optional termination right under
      (1) or (2) above unless it first provides written notice to the Authorized
      Officers of the Sponsor that it intends to exercise such optional termination
      right.

     

    (c)  Notice
      of
      the liquidation of the Certificates shall be given promptly by the Securities
      Administrator by letter to the Certificateholders mailed (a) in the event such
      notice is given in connection with the purchase of the Mortgage Loans and each
      REO Property by the Terminator, not earlier than the 15th day and not later
      than
      the 25th day of the month next preceding the month of the final distribution
      on
      the Certificates or (b) otherwise during the month of such final distribution
      on
      or before the Determination Date in such month, in each case specifying (i)
      the
      Distribution Date upon which the Trust Fund will terminate and the final payment
      in respect of the REMIC I Regular Interests or the Certificates will be made
      upon presentation and surrender of the related Certificates at the office of
      the
      Securities Administrator therein designated, (ii) the amount of any such final
      payment, (iii) that no interest shall accrue in respect of the REMIC I Regular
      Interests or the Certificates from and after the Interest Accrual Period
      relating to the final Distribution Date therefor and (iv) 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 Securities Administrator. In the event such notice is given in connection
      with the purchase of all of the Mortgage Loans and each REO Property remaining
      in REMIC I by the Terminator, the Terminator shall deliver to the Securities
      Administrator for deposit in the Distribution Account not later than the
      Business Day prior to the Distribution Date on which the final distribution
      on
      the Certificates an amount in immediately available funds equal to the
      above-described Termination Price. The Securities Administrator shall remit
      to
      the Servicers, the Master Servicer, the Trustee and the applicable Custodian
      from such funds deposited in the Distribution Account (i) any amounts which
      the
      related Servicer would be permitted to withdraw and retain from the Custodial
      Account pursuant to the Servicing Agreement or from the related Collection
      Account pursuant to Section 3.09 of this Agreement, as applicable, as if
      such funds had been deposited therein (including all unpaid Servicing Fees,
      Master Servicing Fees and all outstanding P&I Advances and Servicing
      Advances) and (ii) any other amounts otherwise payable by the Securities
      Administrator to the Master Servicer, the Trustee, the applicable Custodian
      and
      the Servicers from amounts on deposit in the Distribution Account pursuant
      to
      the terms of this Agreement or the Servicing Agreement prior to making any
      final
      distributions pursuant to Section 10.01(d) below. Upon certification to the
      Trustee by the Securities Administrator of the making of such final deposit,
      the
      Trustee shall promptly release or cause to be released to the Terminator the
      Mortgage Files for the remaining Mortgage Loans, and Trustee shall execute
      all
      assignments, endorsements and other instruments delivered to it and necessary
      to
      effectuate such transfer.

     

    (d)  Upon
      presentation of the Certificates by the Certificateholders on the final
      Distribution Date, the Securities Administrator shall distribute to each
      Certificateholder so presenting and surrendering its Certificates the amount
      otherwise distributable on such Distribution Date in accordance with
      Section 5.01 in respect of the Certificates so presented and surrendered.
      Any funds not distributed to any Holder or Holders of Certificates being retired
      on such Distribution Date because of the failure of such Holder or Holders
      to
      tender their Certificates shall, on such date, be set aside and held in trust
      and credited to the account of the appropriate non-tendering Holder or Holders.
      If any Certificates as to which notice has been given pursuant to this
      Section 10.01 shall not have been surrendered for cancellation within six
      months after the time specified in such notice, the Securities Administrator
      shall mail a second notice to the remaining non-tendering Certificateholders
      to
      surrender their Certificates for cancellation in order to receive the final
      distribution with respect thereto. If within one year after the second notice
      all such Certificates shall not have been surrendered for cancellation, the
      Securities Administrator shall, directly or through an agent, mail a final
      notice to the remaining non-tendering Certificateholders concerning surrender
      of
      their Certificates. The costs and expenses of maintaining the funds in trust
      and
      of contacting such Certificateholders shall be paid out of the assets remaining
      in the trust funds. If within one year after the final notice any such
      Certificates shall not have been surrendered for cancellation, the Securities
      Administrator shall pay to the Depositor all such amounts, and all rights of
      non-tendering Certificateholders in or to such amounts shall thereupon cease.
      No
      interest shall accrue or be payable to any Certificateholder on any amount
      held
      in trust by the Securities Administrator as a result of such Certificateholder’s
      failure to surrender its Certificate(s) on the final Distribution Date for
      final
      payment thereof in accordance with this Section 10.01. Any such amounts
      held in trust by the Securities Administrator shall be held uninvested in an
      Eligible Account.

     

    SECTION
      10.02  Additional
      Termination Requirements.

     

    (a)  In
      the
      event that the Terminator purchases all the Mortgage Loans and each REO Property
      or the final payment on or other liquidation of the last Mortgage Loan or REO
      Property remaining in REMIC I pursuant to Section 10.01, the Trust Fund
      shall be terminated in accordance with the following additional
      requirements:

     

    (i)  The
      Securities Administrator shall specify the first day in the 90-day liquidation
      period in a statement attached to each Trust REMIC’s final Tax Return pursuant
      to Treasury regulation Section 1.860F-1 and shall satisfy all requirements
      of a qualified liquidation under Section 860F of the Code and any
      regulations thereunder, as evidenced by an Opinion of Counsel obtained by and
      at
      the expense of the Terminator;

     

    (ii)  During
      such 90-day liquidation period and, at or prior to the time of making of the
      final payment on the Certificates, the Trustee shall sell all of the assets
      of
      REMIC I to the Terminator for cash; and

     

    (iii)    
      At
      the
      time of the making of the final payment on the Certificates, the Securities
      Administrator shall distribute or credit, or cause to be distributed or
      credited, to the Holders of the Residual Certificates all cash on hand in the
      Trust Fund (other than cash retained to meet claims), and the Trust Fund shall
      terminate at that time.

     

    (b)  At
      the
      expense of the Terminator (or, if the Trust Fund is being terminated as a result
      of the occurrence of the event described in clause (ii) of the first paragraph
      of Section 10.01, at the expense of the Trust Fund), the Terminator shall
      prepare or cause to be prepared the documentation required in connection with
      the adoption of a plan of liquidation of each Trust REMIC pursuant to this
      Section 10.02.

     

    (c)  By
      their
      acceptance of Certificates, the Holders thereof hereby agree to authorize the
      Securities Administrator to specify the 90-day liquidation period for each
      Trust
      REMIC, which authorization shall be binding upon all successor
      Certificateholders.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      XI

     

    REMIC
      PROVISIONS

     

    SECTION
      11.01  REMIC
      Administration.

     

    (a)  The
      Securities Administrator shall elect to treat each Trust REMIC as a REMIC under
      the Code and, if necessary, under applicable state law. Each such election
      will
      be made by the Securities Administrator on Form 1066 or other appropriate
      federal tax or information return or any appropriate state return for the
      taxable year ending on the last day of the calendar year in which the
      Certificates are issued. For the purposes of the REMIC election in respect
      of
      REMIC I, the REMIC I Regular Interests shall be designated as the Regular
      Interests in REMIC I and the Class R-I Interest shall be designated as the
      Residual Interests in REMIC I. The Class A Certificates and the Mezzanine
      Certificates (exclusive of any right to receive payments from the Reserve Fund),
      the Class P Certificates, the Class CE-1 Certificates and the Class CE-2
      Certificates shall be designated as the Regular Interests in REMIC II and the
      Class R-II Interest shall be designated as the Residual Interests in REMIC
      II.
      The Trustee shall not permit the creation of any “interests” in each Trust REMIC
      (within the meaning of Section 860G of the Code) other than the REMIC I Regular
      Interests and the interests represented by the Certificates.

     

    (b)  The
      Closing Date is hereby designated as the “Startup Day” of each Trust REMIC
      within the meaning of Section 860G(a)(9) of the Code.

     

    (c)  The
      Securities Administrator shall be reimbursed for any and all expenses relating
      to any tax audit of the Trust Fund (including, but not limited to, any
      professional fees or any administrative or judicial proceedings with respect
      to
      each Trust REMIC that involve the Internal Revenue Service or state tax
      authorities), including the expense of obtaining any tax related Opinion of
      Counsel except as specified herein. The Securities Administrator, as agent
      for
      each Trust REMIC’s tax matters person shall (i) act on behalf of the Trust Fund
      in relation to any tax matter or controversy involving any Trust REMIC and
      (ii)
      represent the Trust Fund in any administrative or judicial proceeding relating
      to an examination or audit by any governmental taxing authority with respect
      thereto. The holder of the largest Percentage Interest of each Class of Residual
      Certificates shall be designated, in the manner provided under Treasury
      regulations section 1.860F-4(d) and Treasury regulations section
      301.6231(a)(7)-1, as the tax matters person of the related REMIC created
      hereunder. By their acceptance thereof, the holder of the largest Percentage
      Interest of the Residual Certificates hereby agrees to irrevocably appoint
      the
      Securities Administrator or an Affiliate as its agent to perform all of the
      duties of the tax matters person for the Trust Fund.

     

    (d)  The
      Securities Administrator shall prepare and file and the Trustee shall sign
      all
      of the Tax Returns in respect of each REMIC created hereunder. The expenses
      of
      preparing and filing such returns shall be borne by the Securities Administrator
      without any right of reimbursement therefor.

     

    (e)  The
      Securities Administrator shall perform on behalf of each Trust REMIC all
      reporting and other tax compliance duties that are the responsibility of such
      REMIC under the Code, the REMIC Provisions or other compliance guidance issued
      by the Internal Revenue Service or any state or local taxing authority. Among
      its other duties, as required by the Code, the REMIC Provisions or other such
      compliance guidance, the Securities Administrator shall provide (i) to any
      Transferor of a Residual Certificate such information as is necessary for the
      application of any tax relating to the transfer of a Residual Certificate to
      any
      Person who is not a Permitted Transferee upon receipt of additional reasonable
      compensation, (ii) to the Certificateholders such information or reports as
      are
      required by the Code or the REMIC Provisions including reports relating to
      interest, original issue discount and market discount or premium (using the
      Prepayment Assumption as required) and (iii) to the Internal Revenue Service
      the
      name, title, address and telephone number of the person who will serve as the
      representative of each Trust REMIC. The Depositor shall provide or cause to
      be
      provided to the Securities Administrator, within ten (10) days after the Closing
      Date, all information or data that the Securities Administrator reasonably
      determines to be relevant for tax purposes as to the valuations and issue prices
      of the Certificates, including, without limitation, the price, yield, prepayment
      assumption and projected cash flow of the Certificates.

     

    (f)  To
      the
      extent in the control of the Trustee or the Securities Administrator, each
      such
      Person (i) shall take such action and shall cause each REMIC created hereunder
      to take such action as shall be necessary to create or maintain the status
      thereof as a REMIC under the REMIC Provisions, (ii) shall not take any action,
      cause the Trust Fund to take any action or fail to take (or fail to cause to
      be
      taken) any action that, under the REMIC Provisions, if taken or not taken,
      as
      the case may be, could (A) endanger the status of each Trust REMIC as a REMIC
      or
      (B) 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) (either such event, an “Adverse REMIC
      Event”) unless such action or inaction is permitted under this Agreement or the
      Trustee and the Securities Administrator have received an Opinion of Counsel,
      addressed to the them (at the expense of the party seeking to take such action
      but in no event at the expense of the Trustee or the Securities Administrator)
      to the effect that the contemplated action will not, with respect to any Trust
      REMIC, endanger such status or result in the imposition of such a tax, nor
      (iii)
      shall the Securities Administrator take or fail to take any action (whether
      or
      not authorized hereunder) as to which the Trustee has advised it in writing
      that
      it has received an Opinion of Counsel to the effect that an Adverse REMIC Event
      could occur with respect to such action; provided that the Securities
      Administrator may conclusively rely on such Opinion of Counsel and shall incur
      no liability for its action or failure to act in accordance with such Opinion
      of
      Counsel. In addition, prior to taking any action with respect to any Trust
      REMIC
      or the respective assets of each, or causing any Trust REMIC to take any action,
      which is not contemplated under the terms of this Agreement, the Securities
      Administrator will consult with the Trustee or its designee, in writing, with
      respect to whether such action could cause an Adverse REMIC Event to occur
      with
      respect to any Trust REMIC, and the Securities Administrator shall not take
      any
      such action or cause any Trust REMIC to take any such action as to which the
      Trustee has advised it in writing that an Adverse REMIC Event could occur.
      The
      Trustee may consult with counsel to make such written advice, and the cost
      of
      same shall be home by the party seeking to take the action not permitted by
      this
      Agreement, but in no event shall such cost be an expense of the
      Trustee.

     

    (g)  In
      the
      event that any tax is imposed on “prohibited transactions” of any REMIC created
      hereunder as defined in Section 860F(a)(2) of the Code, on the “net income
      from foreclosure property” of such REMIC as defined in Section 860G(c) of
      the Code, on any contributions to any such REMIC after the Startup Day therefor
      pursuant to Section 860G(d) of the Code, or any other tax is imposed by the
      Code or any applicable provisions of state or local tax laws, such tax shall
      be
      charged (i) to the Trustee pursuant to Section 11.03 of this Agreement, if
      such tax arises out of or results from a breach by the Trustee of any of its
      obligations under this Article XI, (ii) to the Securities Administrator pursuant
      to Section 11.03 of this Agreement, if such tax arises out of or results
      from a breach by the Securities Administrator of any of its obligations under
      this Article XI, (iii) to the Master Servicer pursuant to Section 11.03 of
      this Agreement, if such tax arises out of or results from a breach by the Master
      Servicer of any of its obligations under Article IV or under this Article XI,
      (iv) to the related Servicer pursuant to Section 11.03 of this Agreement,
      if such tax arises out of or results from a breach by a Servicer of any of
      its
      obligations under Article III or under this Article XI, or (v) in all other
      cases, against amounts on deposit in the Distribution Account and shall be
      paid
      by withdrawal therefrom.

     

    (h)  The
      Securities Administrator shall, for federal income tax purposes, maintain books
      and records with respect to each Trust REMIC on a calendar year and on an
      accrual basis.

     

    (i)  Following
      the Startup Day, neither the Securities Administrator nor the Trustee shall
      accept any contributions of assets to any Trust REMIC other than in connection
      with any Qualified Substitute Mortgage Loan delivered in accordance with
      Section 2.03 unless it shall have received an Opinion of Counsel to the
      effect that the inclusion of such assets in the Trust Fund will not cause the
      related REMIC to fail to qualify as a REMIC at any time that any Certificates
      are outstanding or subject such REMIC to any tax under the REMIC Provisions
      or
      other applicable provisions of federal, state and local law or
      ordinances.

     

    (j)  Neither
      the Trustee nor the Securities Administrator shall knowingly enter into any
      arrangement by which any Trust REMIC will receive a fee or other compensation
      for services nor permit either REMIC to receive any income from assets other
      than “qualified mortgages” as defined in Section 860G(a)(3) of the Code or
“permitted investments” as defined in Section 860G(a)(5) of the
      Code.

     

    (k)  The
      Securities Administrator shall apply for an employer identification number
      with
      the Internal Revenue Service via a Form SS-4 or other comparable method for
      each
      REMIC. In connection with the foregoing, the Securities Administrator 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
      REMIC as required by IRS Form 8811.

     

    SECTION
      11.02  Prohibited
      Transactions and Activities.

     

    None
      of
      the Depositor, any Servicer, the Securities Administrator, the Master Servicer
      or the Trustee shall sell, dispose of or substitute for any of the Mortgage
      Loans (except in connection with (i) the foreclosure of a Mortgage Loan,
      including but not limited to, the acquisition or sale of a Mortgaged Property
      acquired by deed in lieu of foreclosure, (ii) the bankruptcy of REMIC I, (iii)
      the termination of REMIC I pursuant to Article X of this Agreement, (iv) a
      substitution pursuant to Article II of this Agreement or (v) a purchase of
      Mortgage Loans pursuant to Article II of this Agreement), nor acquire any assets
      for any Trust REMIC (other than REO Property acquired in respect of a defaulted
      Mortgage Loan), nor sell or dispose of any investments in the Collection
      Accounts, the Custodial Account or the Distribution Account for gain, nor accept
      any contributions to any Trust REMIC after the Closing Date (other than a
      Qualified Substitute Mortgage Loan delivered in accordance with
      Section 2.03), unless it has received an Opinion of Counsel, addressed to
      the Trustee and the Securities Administrator (at the expense of the party
      seeking to cause such sale, disposition, substitution, acquisition or
      contribution but in no event at the expense of the Trustee) that such sale,
      disposition, substitution, acquisition or contribution will not (a) affect
      adversely the status of any Trust REMIC as a REMIC or (b) cause any Trust REMIC
      to be subject to a tax on “prohibited transactions” or “contributions” pursuant
      to the REMIC Provisions.

     

    SECTION
      11.03  Indemnification.

     

    (a)  The
      Trustee agrees to be liable for any taxes and costs incurred by the Trust Fund,
      the Depositor, the Master Servicer, the Securities Administrator or the
      Servicers including,
      without
      limitation, any
      reasonable attorneys fees imposed on or incurred by the Trust Fund, the
      Depositor, the Master Servicer, the Securities Administrator or a Servicer
      as a
      result of the Trustee’s failure to perform its covenants set forth in this
      Article XI in accordance with the standard of care of the Trustee set forth
      in
      this Agreement.

     

    (b)  Each
      Servicer party hereto agrees to indemnify the Trust Fund, the Depositor, the
      Master Servicer, the Securities Administrator, the other Servicer and the
      Trustee for any taxes and costs including, without limitation, any reasonable
      attorneys’ fees imposed on or incurred by the Trust Fund, the Depositor, the
      Master Servicer, the Securities Administrator, the other Servicer or the
      Trustee, as a result of the related Servicer’s failure to perform its covenants
      set forth in Article III in accordance with the standard of care of such
      Servicer set forth in this Agreement.

     

    (c)  The
      Master Servicer agrees to indemnify the Trust Fund, the Depositor, each Servicer
      party hereto and the Trustee for any taxes and costs including, without
      limitation, any reasonable attorneys’ fees imposed on or incurred by the Trust
      Fund, the Depositor, the Servicers or the Trustee, as a result of the Master
      Servicer’s failure to perform its covenants set forth in Article IV in
      accordance with the standard of care of the Master Servicer set forth in this
      Agreement.

     

    (d)  The
      Securities Administrator agrees to be liable for any taxes and costs incurred
      by
      the Trust Fund, the Depositor, the Servicers which are a party hereto or the
      Trustee including, without limitation, any reasonable attorneys’ fees imposed on
      or incurred by the Trust Fund, the Depositor, a Servicer or the Trustee as
      a
      result of the Securities Administrator’s failure to perform its covenants set
      forth in this Article XI in accordance with the standard of care of the
      Securities Administrator set forth in this Agreement.

     

    (e)  Each
      of
      the Depositor, Master Servicer, Securities Administrator, Servicers and any
      Servicing Function Participant engaged by such party, respectively, shall
      indemnify and hold harmless the Master Servicer, the Securities Administrator
      and the Depositor, respectively, and each of its directors, officers, employees,
      agents, and affiliates from and against any and all claims, losses, damages,
      penalties, fines, forfeitures, reasonable legal fees and related costs,
      judgments and other costs and expenses arising out of or based upon (a) any
      breach by such party of any if its obligations under hereunder, including
      particularly its obligations to provide any Assessment of Compliance,
      Attestation Report, Compliance Statement or any information, data or materials
      required to be included in any Exchange Act report, (b) any material
      misstatement or omission in any information, data or materials provided by
      such
      party (or, in the case of the Securities Administrator or Master Servicer,
      any
      material misstatement or material omission in (i) any Compliance Statement,
      Assessment of Compliance or Attestation Report delivered by it, or by any
      Servicing Function Participant engaged by it, pursuant to this Agreement, or
      (ii) any Additional Form 10-D Disclosure, Additional Form 10-K Disclosure or
      Form 8-K Disclosure concerning the Master Servicer or the Securities
      Administrator), or (c) the negligence, bad faith or willful misconduct of such
      indemnifying party in connection with its performance hereunder. If the
      indemnification provided for in this Section 11.03(e) is unavailable or
      insufficient to hold harmless the Master Servicer, the Securities Administrator
      or the Depositor, as the case may be, then each such party agrees that it shall
      contribute to the amount paid or payable by the Master Servicer, the Securities
      Administrator or the Depositor, as applicable, as a result of any claims,
      losses, damages or liabilities incurred by such party in such proportion as
      is
      appropriate to reflect the relative fault of the indemnified party on the one
      hand and the indemnifying party on the other. This indemnification shall survive
      the termination of this Agreement or the termination of any party to this
      Agreement.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      XII 

    MISCELLANEOUS
      PROVISIONS

     

    SECTION
      12.01  Amendment.

     

    This
      Agreement may be amended from time to time by the Depositor, Ocwen, Wells Fargo,
      the Master Servicer, the Securities Administrator and the Trustee, but without
      the consent of any of the Certificateholders, (i) to cure any ambiguity or
      defect, (ii) to correct, modify or supplement any provisions herein (including
      to give effect to the expectations of Certificateholders), (iii) to ensure
      compliance with Regulation AB, or (iv) 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, and that such action shall
      not, as evidenced by an Opinion of Counsel delivered to the Trustee, adversely
      affect in any material respect the interests of any Certificateholder; provided
      that any such amendment shall be deemed not to adversely affect in any material
      respect the interests of the Certificateholders and no such Opinion of Counsel
      shall be required if the Person requesting such amendment obtains a letter
      from
      each Rating Agency stating that such amendment would not result in the
      downgrading or withdrawal of the respective ratings then assigned to the
      Certificates. No amendment shall be deemed to adversely affect in any material
      respect the interests of any Certificateholder who shall have consented thereto,
      and no Opinion of Counsel shall be required to address the effect of any such
      amendment on any such consenting Certificateholder.

     

    This
      Agreement may also be amended from time to time by the Depositor, Ocwen, Wells
      Fargo, the Master Servicer, the Securities Administrator and the Trustee with
      the consent of the Holders of Certificates entitled to at least 66% of the
      Voting Rights 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 received on Mortgage Loans which are 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 (i), without
      the
      consent of the Holders of Certificates of such Class evidencing at least 66%
      of
      the Voting Rights allocated to such Class, or (iii) modify the consents required
      by the immediately preceding clauses (i) and (ii) without the consent of the
      Holders of all Certificates then outstanding. Notwithstanding any other
      provision of this Agreement, for purposes of the giving or withholding of
      consents pursuant to this Section 12.01, Certificates registered in the
      name of the Depositor or a Servicer or any Affiliate thereof shall be entitled
      to Voting Rights with respect to matters affecting such Certificates. Without
      limiting the generality of the foregoing, any amendment to this Agreement
      required in connection with the compliance with or the clarification of any
      reporting obligations described in Section 5.06 hereof shall not require
      the consent of any Certificateholder and without the need for any Opinion of
      Counsel or Rating Agency confirmation.

     

    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 to the effect that such amendment is permitted hereunder and will not
      result in the imposition of any tax on any Trust REMIC pursuant to the REMIC
      Provisions or cause any Trust REMIC to fail to qualify as a REMIC at any time
      that any Certificates are outstanding and that such amendment is authorized
      or
      permitted by this Agreement.

     

    Promptly
      after the execution of any such amendment the Trustee shall furnish a copy
      of
      such amendment to each Certificateholder.

     

    It
      shall
      not be necessary for the consent of Certificateholders under this
      Section 12.01 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.

     

    The
      cost
      of any Opinion of Counsel to be delivered pursuant to this Section 12.01
      shall be borne by the Person seeking the related amendment, but in no event
      shall such Opinion of Counsel be an expense of the Trustee.

     

    The
      Trustee may, but shall not be obligated to enter into any amendment pursuant
      to
      this Section that affects its rights, duties and immunities under this
      Agreement or otherwise.

     

    SECTION
      12.02  Recordation
      of Agreement; Counterparts.

     

    To
      the
      extent permitted by applicable law, this Agreement (or an abstract hereof,
      if
      acceptable by the applicable recording office) 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 the expense
      of
      the Certificateholders, but only after the Depositor has delivered to the
      Trustee 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
      12.03  Limitation
      on Rights of Certificateholders.

     

    The
      death
      or incapacity of any Certificateholder shall not operate to terminate this
      Agreement or the Trust Fund, nor entitle such Certificateholder’s legal
      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 Fund, nor
      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 expressly provided
      for
      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 any 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 person 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 of any provision 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 default and of the continuance
      thereof, as hereinbefore provided, and unless also the Holders of Certificates
      entitled to at least 25% of the Voting Rights 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 against the costs, expenses and liabilities to
      be
      incurred therein or thereby, and the Trustee, for 15 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 is understood and intended,
      and 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 whatsoever by virtue of any provision of
      this
      Agreement to affect, disturb or prejudice the rights of the Holders of any
      other
      of such 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 equal, ratable and common benefit
      of
      all Certificateholders. For the protection and enforcement of the provisions
      of
      this Section, each and every Certificateholder and the Trustee shall be entitled
      to such relief as can be given either at law or in equity.

     

    SECTION
      12.04  Governing
      Law.

     

    This
      Agreement shall be construed in accordance with the laws of the State of New
      York and the obligations, rights and remedies of the parties hereunder shall
      be
      determined in accordance with such laws without regard to conflicts of laws
      principles thereof other than Section 5-1401 of the New York General Obligations
      Law which shall govern.

     

    SECTION
      12.05  Notices.

     

    All
      directions, demands and notices hereunder shall be in writing and shall be
      deemed to have been duly given when received if sent by facsimile, receipt
      confirmed, if personally delivered at or mailed by first class mail, postage
      prepaid, or by express delivery service or delivered in any other manner
      specified herein, to (a) in the case of the Depositor, ACE Securities Corp.,
      AMACAR GROUP, 6525 Morrison Boulevard, Suite 318, Charlotte, North Carolina
      28211, Attention: Juliana Johnson (telecopy number: (704) 365-1362) with a
      copy
      to Deutsche Bank Securities, Inc., 60 Wall Street, New York, NY 10005,
      Attention: Legal Department (telecopy number: (212) 797-4561), or such other
      address or telecopy number as may hereafter be furnished to the Servicers,
      the
      Master Servicer, the Securities Administrator and the Trustee in writing by
      the
      Depositor, (b) in the case of Ocwen, Ocwen Loan Servicing, LLC, 1661 Worthington
      Road, Centrepark West, Suite 100, West Palm Beach, Florida 33409, Attention:
      Secretary (telecopy number: (561) 682-8177), or such other address or telecopy
      number as may hereafter be furnished to the Trustee, the Master Servicer, the
      Securities Administrator and the Depositor in writing by Ocwen, (c) in the
      case
      of Wells Fargo as Servicer, Wells Fargo Bank, National Association, 1 Home
      Campus, Des Moines, Iowa 50328, Attention: John Brown MAC X2401-042, Facsimile
      No. (515) 213-7121, with a copy to Wells Fargo Bank, N.A., 1 Home Campus, Des
      Moines, Iowa 50328, Attention: General Counsel MAC X2401-06T, or such other
      address or telecopy number as may hereafter be furnished to the Trustee, the
      Master Servicer, the Securities Administrator and the Depositor in writing
      by
      Wells Fargo, (d) in the case of the Master Servicer and the Securities
      Administrator, P.O. Box 98, Columbia, Maryland 21046 and for overnight delivery
      to 9062 Old Annapolis Road, Columbia, Maryland 21045, Attention: Ace Securities
      Corp., 2006-SD2 (telecopy number: (410) 715-2380), or such other address or
      telecopy number as may hereafter be furnished to the Trustee, the Depositor
      and
      the Servicers in writing by the Master Servicer or the Securities Administrator
      and (e) in the case of the Trustee, at the Corporate Trust Office or such other
      address or telecopy number as the Trustee may hereafter be furnish to the
      Servicers, the Master Servicer, the Securities Administrator and the Depositor
      in writing by the Trustee. Any notice required or permitted to be given to
      a
      Certificateholder shall be given by first class mail, postage prepaid, at the
      address of such Holder 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. A copy of any notice required to be
      telecopied hereunder also shall be mailed to the appropriate party in the manner
      set forth above.

     

    SECTION
      12.06  Severability
      of Provisions.

     

    If
      any
      one or more of the covenants, agreements, provisions or terms of this Agreement
      shall be for any reason whatsoever held invalid, then such covenants,
      agreements, provisions or terms shall be deemed severable from the remaining
      covenants, agreements, provisions or terms of this Agreement and shall in no
      way
      affect the validity or enforceability of the other provisions of this Agreement
      or of the Certificates or the rights of the Holders thereof.

     

    SECTION
      12.07  Notice
      to Rating Agencies.

     

    The
      Trustee shall use its best efforts promptly to provide notice to the Rating
      Agencies with respect to each of the following of which a Responsible Officer
      has actual knowledge:

     

    
      	1.  	
              Any
                material change or amendment to this
                Agreement;

            

    

     

    
      	2.  	
              The
                occurrence of any Servicer Event of Default or Master Servicer Event
                of
                Default that has not been cured or
                waived;

            

    

     

    
      	3.  	
              The
                resignation or termination of a Servicer, the Master Servicer or
                the
                Trustee;

            

    

     

    
      	4.  	
              The
                repurchase or substitution of Mortgage Loans pursuant to or as
                contemplated by Section 2.03;

            

    

     

    
      	5.  	
              The
                final payment to the Holders of any Class of
                Certificates;

            

    

     

    
      	6.  	
              Any
                change in the location of the Distribution Account;
                and

            

    

     

    
      	7.  	
              Any
                event that would result in the inability of the Trustee as successor
                to
                Wells Fargo in its capacity as a Servicer hereunder to make advances
                regarding delinquent Wells Fargo Mortgage
                Loans.

            

    

     

    In
      addition, the Securities Administrator shall promptly make available to each
      Rating Agency copies of each report to Certificateholders described in
      Section 5.02 of this Agreement.

     

    Each
      Servicer shall make available to each Rating Agency copies of the
      following:

     

    
      	1.  	
              Each
                Annual Statement of Compliance described in Section 3.17 of this
                Agreement;

            

    

     

    
      	2.  	
              Each
                Assessment of Compliance and Attestation Report described in
                Section 3.18 of this Agreement;
                and

            

    

     

    
      	3.  	
              Any
                change in the location of the related Collection
                Account.

            

    

     

    Any
      such
      notice pursuant to this Section 12.07 shall be in writing and shall be
      deemed to have been duly given if personally delivered at or mailed by first
      class mail, postage prepaid, or by express delivery service to Standard &
Poor’s, a division of the McGraw-Hill Companies, Inc., 55 Water Street, New
      York, New York 10041; and to Fitch Ratings, 1 State Street Plaza, New York,
      New
      York 10004 or such other addresses as the Rating Agencies may designate in
      writing to the parties hereto.

     

    SECTION
      12.08  Article
      and Section References.

     

    All
      article and section references used in this Agreement, unless otherwise
      provided, are to articles and sections in this Agreement.

     

    SECTION
      12.09  Grant
      of Security Interest.

     

    It
      is the
      express intent of the parties hereto that the conveyance of the Mortgage Loans
      by the Depositor to the Trustee, on behalf of the Trust and for the benefit
      of
      the Certificateholders, be, and be construed as, a sale of the Mortgage Loans
      by
      the Depositor and not a pledge of the Mortgage Loans to secure a debt or other
      obligation of the Depositor. However, in the event that, notwithstanding the
      aforementioned intent of the parties, the Mortgage Loans are held to be property
      of the Depositor, then, (a) it is the express intent of the parties that such
      conveyance be deemed a pledge of the Mortgage Loans by the Depositor to the
      Trustee, on behalf of the Trust and for the benefit of the Certificateholders,
      to secure a debt or other obligation of the Depositor and (b)(1) this Agreement
      shall also be deemed to be a security agreement within the meaning of Articles
      8
      and 9 of the Uniform Commercial Code as in effect from time to time in the
      State
      of New York; (2) the conveyance provided for in Section 2.01 shall be
      deemed to be a grant by the Depositor to the Trustee, on behalf of the Trust
      and
      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 Collection Accounts and the Distribution Account,
      whether in the form of cash, instruments, securities or other property; (3)
      the
      obligations secured by such security agreement shall be deemed to be all of
      the
      Depositor’s obligations under this Agreement, including the obligation to
      provide to the Certificateholders the benefits of this Agreement relating to
      the
      Mortgage Loans and the Trust Fund; and (4) 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 purpose of perfecting such security interest under
      applicable law. Accordingly, the Depositor hereby grants to the Trustee, on
      behalf of the Trust and for the benefit of the Certificateholders, a security
      interest in the Mortgage Loans and all other property described in clause (2)
      of
      the preceding sentence, for the purpose of securing to the Trustee the
      performance by the Depositor of the obligations described in clause (3) of
      the
      preceding sentence. Notwithstanding the foregoing, the parties hereto intend
      the
      conveyance pursuant to Section 2.01 to be a true, absolute and
      unconditional sale of the Mortgage Loans and assets constituting the Trust
      Fund
      by the Depositor to the Trustee, on behalf of the Trust and for the benefit
      of
      the Certificateholders.

     

    SECTION
      12.10  Survival
      of Indemnification.

     

    Any
      and
      all indemnities to be provided by any party to this Agreement shall survive
      the
      termination and resignation of any party hereto and the termination of this
      Agreement.

     

    SECTION
      12.11  Servicing
      Agreement.

     

    With
      respect to the Servicing Agreement, in the event of any conflict between the
      provisions of this Agreement and the provisions of the Servicing Agreement,
      the
      provisions of the Servicing Agreement shall control.

     

    SECTION
      12.12  Intention
      of the Parties and Interpretation.

     

    Each
      of
      the parties acknowledges and agrees that the purpose of Sections 3.17, 3.18,
      3.19, 4.15, 4.16, 4.17, 4.18 and 5.06 of this Agreement is to facilitate
      compliance by the Sponsor, the Master Servicer, the Securities Administrator
      and
      the Depositor with the provisions of Regulation AB promulgated by the SEC under
      the Exchange Act (17 C.F.R. §§ 229.1100 - 229.1123), as such may be amended from
      time to time and subject to clarification and interpretive advice as may be
      issued by the staff of the SEC from time to time. Therefore, each of the parties
      agrees that (a) the obligations of the parties hereunder shall be interpreted
      in
      such a manner as to accomplish that purpose, (b) the parties’ obligations
      hereunder will be supplemented and modified as necessary to be consistent with
      any such amendments, interpretive advice or guidance, convention or consensus
      among active participants in the asset-backed securities markets, advice of
      counsel, or otherwise in respect of the requirements of Regulation AB and (c)
      the parties shall comply with reasonable requests made by the Master Servicer,
      the Securities Administrator, the Sponsor or the Depositor for delivery of
      additional or different information as the Master Servicer, the Securities
      Administrator, the Sponsor or the Depositor may determine in good faith is
      necessary to comply with the provisions of Regulation AB.

     

    

    IN
      WITNESS WHEREOF, the Depositor, Ocwen, Wells Fargo, the Master Servicer, the
      Securities Administrator and the Trustee have caused their names to be signed
      hereto by their respective officers thereunto duly authorized, in each case
      as
      of the day and year first above written.

     

    

      
        	 	
                ACE
                  SECURITIES CORP., 

                as
                  Depositor

              
	 	 	 
	 	
                By:

              	
                /s/
                  Doris J Hearn

              
	 	
                 

              	
                Name:
                  Doris
                  J Hearn

              
	 	
                 

              	
                Title: Vice
                  President

              

      

      

        
          	 	 	 
	 	
                  By:

                	
                  /s/
                    Evelyn Echevarria

                
	 	
                   

                	
                  Name: Evelyn
                    Echevarria

                
	 	
                   

                	
                  Title: Vice
                    President

                

        

        

          
            	 	
                    
                      OCWEN
                        LOAN SERVICING, LLC,

                      as
                        a Servicer

                    

                  
	 	 	 
	 	
                    By:

                  	/s/
Richard
                    Delgado
	 	
                     

                  	
                    Name: Richard
                      Delgado

                  
	 	
                     

                  	
                    Title:
                      Authorized
                      Representative

                  

          

          

            
              	 	
                      
                        
                          WELLS
                            FARGO BANK, NATIONAL ASSOCIATION

                          as
                            a Servicer

                        

                      

                    
	 	 	 
	 	
                      By:

                    	
                      /s/
                        Laurie McGoogan

                    
	 	
                       

                    	
                      Name:
                        Laurie McGoogan

                    
	 	
                       

                    	
                      Title:
                        Vice President

                    

            

            

              
                	 	
                        
                          
                            
                              HSBC
                                BANK USA, NATIONAL ASSOCIATION

                              not
                                in its individual capacity but solely as
                                Trustee

                            

                          

                        

                      
	 	 	 
	 	
                        By:

                      	/s/
Elena
                        Zheng
	 	
                         

                      	
                        Name:
                          Elena Zheng

                      
	 	
                         

                      	
                        Title:
                          Assistant Vice President

                      

              

              

                
                  	 	
                          
                            
                              
                                
                                  WELLS
                                    FARGO BANK, NATIONAL ASSOCIATION

                                  as
                                    Master Servicer and Securities
                                    Administrator

                                

                              

                            

                          

                        
	 	 	 
	 	
                          By:

                        	
                          /s/
                            Jennifer Richardson

                        
	 	
                           

                        	
                          Name:
                            Jennifer Richardson

                        
	 	
                           

                        	
                          Title:
                            Assistant Vice President

                        
	 	 	 
	 	Acknowledged
                          and Agreed for purposes of Sections 7.08, 7.09 and
                          7.10:

                

                

                  
                    	 	
                            
                              
                                
                                  RISK
                                    MANAGEMENT GROUP, LLC

                                

                              

                            

                          
	 	 	 
	 	
                            By:

                          	
                            /s/
                              Charlie Cacici

                          
	 	
                             

                          	
                            Name:
                              Charlie
                              Cacici

                          
	 	
                             

                          	
                            Title:
                              President/Managing
                              Member

                          

                  

                  

                    
                      	 	 	 
	 	
                              By:

                            	
                              /s/
                                John Cafiero

                            
	 	
                               

                            	
                              Name:
                                John Cafiero

                            
	 	
                               

                            	
                              Title:
                                Managing
                                Member

                            
	 	 	 
	 	Acknowledged
                              and Agreed for purposes of
                              Section 9.05:

                    

                    

                      
                        	 	
                                
                                  
                                    
                                      DB
                                        STRUCTURED PRODUCTS, INC.

                                    

                                  

                                

                              
	 	 	 
	 	
                                By:

                              	
                                /s/
                                  Darren Hadlock

                              
	 	
                                 

                              	
                                Name:
                                  Darren Hadlock

                              
	 	
                                 

                              	
                                Title:
                                  Director

                              

                      

                      

                        
                          	 	 	 
	 	
                                  By:

                                	
                                  /s/
                                    Susan Valenti

                                
	 	
                                   

                                	
                                  Name:
                                    Susan Valenti

                                
	 	
                                   

                                	
                                  Title:
                                    Director

                                
	 	 	 
	 	Acknowledged
                                  and Agreed for purposes of Section
                                  5.01(b):

                        

                        

                          
                            	 	
                                    
                                      
                                        
                                          DEUTSCHE
                                            BANK SECURITIES INC. as Class CE-2
                                            Certificateholder

                                        

                                      

                                    

                                  
	 	 	 
	 	
                                    By:

                                  	
                                    /s/
                                      Rika Yano

                                  
	 	
                                     

                                  	
                                    Name:
                                      Rika Yano

                                  
	 	
                                     

                                  	
                                    Title:
                                      Vice
                                      President

                                  

                          

                          

                            
                              	 	
                                      By:

                                    	
                                      /s/
                                        Susan Valenti

                                    
	 	
                                       

                                    	
                                      Name:
                                        Susan Valenti

                                    
	 	
                                       

                                    	
                                      Title:
                                        Director

                                    

                            
                              
                                
                                

                              

                              
                                
                                

                                
                                  

                                

                              

                              
                                
                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    

     

    

      
        	
                STATE
                  OF 

              	
                )

              	 
	 	
                )

              	
                ss.:

              
	
                COUNTY
                  OF

              	
                )

              	 

      

      
 

    

    

    On
      the
      ___ day of June 2006, before me, a notary public in and for said State,
      personally appeared _____________________ known to me to be a
      _____________________ of ACE Securities Corp., one of the corporations 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]     My
      commission expires

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    

      
        	
                STATE
                  OF 

              	
                )

              	 
	 	
                )

              	
                ss.:

              
	
                COUNTY
                  OF

              	
                )

              	 

      

    

    

    

    On
      the
      ___ day of June 2006, before me, a notary public in and for said State,
      personally appeared _____________________ known to me to be a
      _____________________ of ACE Securities Corp., one of the corporations 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]     My
      commission expires

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    
      

        
          	
                  STATE
                    OF 

                	
                  )

                	 
	 	
                  )

                	
                  ss.:

                
	
                  COUNTY
                    OF

                	
                  )

                	 

        

      

      
 

    

    

    On
      the
      ___ day of June 2006, before me, a notary public in and for said State,
      personally appeared _____________________ known to me to be a
      _____________________ of Wells Fargo Bank, National Association, a national
      banking association that executed the within instrument, and also known to
      me to
      be the person who executed it on behalf of said national banking association,
      and acknowledged to me that such national banking association executed the
      within instrument.

     

    IN
      WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the
      day and year in this certificate first above written.

     

    
      
        

          
            	 	 
	 	
                    Notary
                      Public

                  

          

        

         

      

    

     

    

    [Notarial
      Seal]     My
      commission expires

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    
      

        
          	
                  STATE
                    OF 

                	
                  )

                	 
	 	
                  )

                	
                  ss.:

                
	
                  COUNTY
                    OF

                	
                  )

                	 

        

      

      
 

    

    

    On
      the __
      day of June 2006, before me, a notary public in and for said State, personally
      appeared ___________________________ known to me to be a ____________________
      of
      Ocwen Loan Servicing, LLC, a Delaware limited liability company that executed
      the within instrument, and also known to me to be the person who executed it
      on
      behalf of said entity, and acknowledged to me that such entity 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]     My
      commission expires

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      

        
          	
                  STATE
                    OF 

                	
                  )

                	 
	 	
                  )

                	
                  ss.:

                
	
                  COUNTY
                    OF

                	
                  )

                	 

        

      

      

 

    

    

    On
      the
      ___ day of June 2006, before me, a notary public in and for said State,
      personally appeared _____________________ known to me to be a
      _____________________ of Wells Fargo Bank, National Association, a national
      banking association that executed the within instrument, and also known to
      me to
      be the person who executed it on behalf of said national banking association,
      and acknowledged to me that such national banking association executed the
      within instrument.

     

    IN
      WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the
      day and year in this certificate first above written.

     

    
      
        

          
            	 	 
	 	
                    Notary
                      Public

                  

          

        

         

      

    

     

    

    [Notarial
      Seal]     My
      commission expires

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      

        
          	
                  STATE
                    OF 

                	
                  )

                	 
	 	
                  )

                	
                  ss.:

                
	
                  COUNTY
                    OF

                	
                  )

                	 

        

      

      
 

    

    

    On
      the
      ___ day of June 2006, before me, a notary public in and for said State,
      personally appeared _____________________ known to me to be a
      _____________________ of HSBC Bank USA, National Association, a national banking
      association that executed the within instrument, and also known to me to be
      the
      person who executed it on behalf of said national banking association, and
      acknowledged to me that such national banking association executed the within
      instrument.

     

    IN
      WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the
      day and year in this certificate first above written.

     

    
      
        

          
            	 	 
	 	
                    Notary
                      Public

                  

          

        

         

      

    

     

    

    [Notarial
      Seal]     My
      commission expires

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    

      EXHIBIT
        A-1

       

      FORM
        OF
        CLASS A 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”).

       

      UNLESS
        THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
        TRUST COMPANY TO THE DEPOSITOR OR ITS AGENT FOR REGISTRATION OF TRANSFER,
        EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME
        OF
        CEDE & CO. OR SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE
        OF THE DEPOSITORY TRUST COMPANY AND ANY PAYMENT IS MADE TO CEDE & CO., ANY
        TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY
        PERSON
        IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
        HEREIN.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	
                Series
                  2006-SD2, Class A

              	 	
                Aggregate
                  Certificate Principal Balance of the Class A Certificates as of
                  the Issue
                  Date: $________

                 

              
	
                Pass-Through
                  Rate: Variable

              	 	
                Denomination:
                  $_____________________

                 

              
	
                Date
                  of Pooling and Servicing Agreement: 

                May
                  31, 2006

                 

              	 	
                Master
                  Servicer: Wells Fargo Bank, National Association

              
	
                First
                  Distribution Date: July 25, 2006

              	 	
                Trustee:
                  HSBC Bank USA, National Association

                 

              
	
                Cut-off
                  Date: May 31, 2006

              	 	
                Issue
                  Date: June 26, 2006

                 

              
	
                No.__

              	 	
                CUSIP:________________

              

      

      

      DISTRIBUTIONS
        IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF THIS CERTIFICATE MAY
        BE
        MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY, THE OUTSTANDING CERTIFICATE
        PRINCIPAL BALANCE HEREOF AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ABOVE
        AS
        THE DENOMINATION OF THIS CERTIFICATE.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      ACE
        SECURITIES CORP. HOME EQUITY LOAN TRUST, SERIES 2006-SD2

      ASSET
        BACKED PASS-THROUGH CERTIFICATE

       

      evidencing
        a beneficial ownership interest in a Trust Fund (the “Trust Fund”) consisting
        primarily of a pool of conventional one- to four-family family, fixed and
        adjustable-rate first and second lien mortgage loans (the “Mortgage Loans”)
        formed and sold by

       

      ACE
        SECURITIES CORP.

       

      THIS
        CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN ACE SECURITIES
        CORP., THE MASTER SERVICER, THE SECURITIES ADMINISTRATOR, THE SERVICERS,
        THE
        TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE NOR
        THE
        UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR INSTRUMENTALITY
        OF THE
        UNITED STATES.

       

      This
        certifies that [Cede & Co.] is the registered owner of a Percentage Interest
        (obtained by dividing the denomination of this Certificate by the aggregate
        Certificate Principal Balance of the Class A Certificates as of the Issue
        Date)
        in that certain beneficial ownership interest evidenced by all the Class
        A
        Certificates in REMIC II created pursuant to a Pooling and Servicing Agreement,
        dated as specified above (the “Agreement”), among ACE Securities Corp. as
        depositor (hereinafter called the “Depositor”, which term includes any successor
        entity under the Agreement), Wells Fargo Bank, National Association as master
        servicer (the “Master Servicer”) and securities administrator (the “Securities
        Administrator”), Ocwen Loan Servicing, LLC as a servicer (“Ocwen”), Wells Fargo
        Bank, National Association as a servicer (“Wells Fargo”) and HSBC Bank USA,
        National Association as trustee (the “Trustee”), a summary of certain of the
        pertinent provisions of which is set forth hereafter. Certain of the Mortgage
        Loans are being serviced by Select Portfolio Servicing, Inc. (“SPS,” together
        with Ocwen and Wells Fargo, each a “Servicer” and together the “Servicers”)
        pursuant to a separate servicing agreement. To the extent not defined herein,
        the capitalized terms used herein have the meanings assigned 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.

       

      Pursuant
        to the terms of the Agreement, distributions 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 such 25th
        day (a
“Distribution Date”), commencing on the First Distribution Date specified above,
        to the Person in whose name this Certificate is registered on the Business
        Day
        immediately preceding such Distribution Date (the “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 the Holders of Class A Certificates
        on such Distribution Date pursuant to the Agreement.

       

      All
        distributions to the Holder of this Certificate under the Agreement will
        be made
        or caused to be made by the Securities Administrator by wire transfer in
        immediately available funds to the account of the Person entitled thereto
        if
        such Person shall have so notified the Securities Administrator in writing
        at
        least five Business Days prior to the Record Date immediately prior to such
        Distribution Date and is the registered owner of Class A Certificates the
        aggregate initial Certificate Principal Balance of which is in excess of
        the
        lesser of (i) $5,000,000 or (ii) two-thirds of the aggregate initial Certificate
        Principal Balance of the Class A Certificates, or otherwise by check mailed
        by
        first class mail to the address of the Person entitled thereto, as such name
        and
        address shall appear on the Certificate Register. Notwithstanding the above,
        the
        final distribution on this Certificate will be made after due notice by the
        Securities Administrator of the pendency of such distribution and only upon
        presentation and surrender of this Certificate at the office or agency appointed
        by the Securities Administrator for that purpose as provided in the
        Agreement.

       

      The
        Pass-Through Rate applicable to the calculation of interest payable with
        respect
        to this Certificate on any Distribution Date shall be a rate per annum equal
        to
        the lesser of (i) One-Month LIBOR plus [___]%, in the case of each Distribution
        Date through and including the Distribution Date on which the aggregate
        principal balance of the Mortgage Loans (and properties acquired in respect
        thereof) remaining in the Trust Fund is reduced to less than or equal to
        10% of
        the aggregate principal balance of the Mortgage Loans as of the Cut-off Date,
        or
        One-Month LIBOR plus [___]%, in the case of any Distribution Date thereafter
        and
        (ii) the Net WAC Pass-Through Rate for such Distribution Date.

       

      This
        Certificate is one of a duly authorized issue of Certificates designated
        as an
        Asset Backed Pass-Through Certificate of the Series specified on the face
        hereof
        (herein called the “Certificates”) and representing a Percentage Interest in the
        Class of Certificates specified on the face hereof equal to the denomination
        specified on the face hereof divided by the aggregate Certificate Principal
        Balance of the Class of Certificates specified on the face hereof.

       

      The
        Certificates are limited in right of payment to certain collections and
        recoveries in respect of the Mortgage Loans, as more specifically set forth
        herein and in the Agreement. As provided in the Agreement, withdrawals from
        the
        Collection Accounts and the Distribution Account may be made from time to
        time
        for purposes other than distributions to Certificateholders, such purposes
        including reimbursement of advances made, or certain expenses incurred, with
        respect to the Mortgage Loans. 

       

      The
        Agreement permits, with certain exceptions therein provided, the amendment
        thereof and the modification of the rights and obligations of the Depositor,
        the
        Master Servicer, the Trustee, the Securities Administrator, the Servicers
        party
        thereto and the rights of the Certificateholders under the Agreement at any
        time
        by the Depositor, the Master Servicer, the Trustee, the Securities Administrator
        and the Servicers party thereto with the consent of the Holders of Certificates
        entitled to at least 66% of the Voting Rights. 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 herefor 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
        upon
        surrender of this Certificate for registration of transfer at the offices
        or
        agencies appointed by the Securities Administrator as provided in the Agreement,
        duly endorsed by, or accompanied by an assignment in the form below or other
        written instrument of transfer in form satisfactory to the Securities
        Administrator duly executed by, the Holder hereof or such Holder’s attorney duly
        authorized in writing, and thereupon one or more new Certificates of the
        same
        Class in authorized denominations evidencing the same aggregate Percentage
        Interest will be issued to the designated transferee or
        transferees.

       

      The
        Certificates are issuable in fully registered form only without coupons in
        Classes and denominations representing Percentage Interests specified in
        the
        Agreement. As provided in the Agreement and subject to certain limitations
        therein set forth, the Certificates are exchangeable for new Certificates
        of the
        same Class in authorized denominations 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
        of
        Certificates, but the Securities Administrator may require payment of a sum
        sufficient to cover any tax or other governmental charge that may be imposed
        in
        connection with any transfer or exchange of Certificates.

       

      The
        Depositor, the Master Servicer, the Trustee, the Securities Administrator,
        the
        Servicers and any agent of the Depositor, the Master Servicer, the Trustee,
        the
        Securities Administrator or a Servicer may treat the Person in whose name
        this
        Certificate is registered as the owner hereof for all purposes, and none
        of the
        Depositor, the Master Servicer, the Trustee, the Securities Administrator,
        the
        Servicers nor any such agent shall be affected by notice to the
        contrary.

       

      The
        obligations created by the Agreement and the Trust Fund created thereby shall
        terminate upon payment to the Certificateholders of all amounts held by the
        Securities Administrator and required to be paid to them pursuant to the
        Agreement following the earlier of (i) the final payment or other liquidation
        (or any advance with respect thereto) of the last Mortgage Loan remaining
        in
        REMIC I and (ii) the purchase by the party designated in the Agreement at
        a
        price determined as provided in the Agreement from REMIC I of all the Mortgage
        Loans and all property acquired in respect of such Mortgage Loans. The Agreement
        permits, but does not require, the party designated in the Agreement to purchase
        from REMIC I all the Mortgage Loans and all property acquired in respect
        of any
        Mortgage Loan at a price determined as provided in the Agreement. The
        exercise of such right will effect early retirement of the Certificates;
        provided, however, such right to purchase is subject to the aggregate Scheduled
        Principal Balance of the Mortgage Loans (and properties acquired in respect
        thereof) at the time of purchase being less than or equal to 10% of the
        aggregate Scheduled Principal Balance of the Mortgage Loans as of the Cut-off
        Date.

       

      The
        recitals contained herein shall be taken as statements of the Depositor and
        neither the Trustee nor the Securities Administrator assumes any responsibility
        for their correctness.

       

      Unless
        the certificate of authentication hereon has been executed by the Securities
        Administrator, by manual signature, this Certificate shall not be entitled
        to
        any benefit under the Agreement or be valid for any purpose.

       

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF, the Securities Administrator has caused this Certificate
        to be
        duly executed.

       

      Dated:

      
        	 	 	 	 	 	 	 	
                WELLS
                  FARGO BANK, NATIONAL ASSOCIATION

                as
                  Securities Administrator

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:

              	 
	 	 	 	 	 	 	 	 	
                Authorized
                  Officer

              
	 	 	 	 	 	 	 	 	 

      

      

      

      

      

      

      CERTIFICATE
        OF AUTHENTICATION

       

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

       

      
        	 	 	 	 	 	 	 	
                WELLS
                  FARGO BANK, NATIONAL ASSOCIATION

                as
                  Securities Administrator

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:

              	 
	 	 	 	 	 	 	 	 	
                Authorized
                  Signatory

              
	 	 	 	 	 	 	 	 	 

      

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      ABBREVIATIONS

       

      The
        following abbreviations, when used in the inscription on the face of this
        instrument, shall be construed as though they were written out in full according
        to applicable laws or regulations:

       

      
        	
                TEN
                  COM -

              	
                as
                  tenants in common

              	
                UNIF
                  GIFT MIN ACT -

              	
                      
                     Custodian        
                        

                (Cust) 
                   (Minor)

                under
                  Uniform Gifts 

                to
                  Minors Act

              
	
                TEN
                  ENT -

              	
                as
                  tenants by the entireties

              	 	
                ________________

                (State)

              
	
                JT
                  TEN -

              	
                as
                  joint tenants with right 

                if
                  survivorship and not as 

                tenants
                  in common

              	 	 
	 	 	 	 
	
                Additional
                  abbreviations may also be used though not in the above
                  list.

              

      

      

      ASSIGNMENT

       

      
        	
                FOR
                  VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s)
                  

              
	
                unto

              	 
	 	 
	 	 

      

      (Please
        print or typewrite name, address including postal zip code, and Taxpayer
        Identification Number of assignee)

       

      a
        Percentage Interest equal to ____%
        evidenced by the within Asset Backed Pass-Through Certificate and hereby
        authorize(s) the registration of transfer of such interest to assignee on
        the
        Certificate Register of the Trust Fund.

       

      I
        (we)
        further direct the Securities Administrator to issue a new Certificate of
        a like
        Percentage Interest and Class to the above named assignee and deliver such
        Certificate to the following address: 

      
        	 	 	
                .

              

      

      

       

      

       

      
        	
                Dated:

              	 
	 	
                Signature
                  by or on behalf of assignor

              
	 	 
	 	 
	 	
                Signature
                  Guaranteed

              

      

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      DISTRIBUTION
        INSTRUCTIONS

       

      The
        assignee should include the following for purposes of distribution:

       

      
        	
                Distributions
                  shall be made, by wire transfer or otherwise, in immediately available
                  

              
	
                funds
                  to

              	 
	 
	
                for
                  the account of

              	 
	
                account
                  number

              	 	
                or,
                  if mailed by check, to

              
	 
	
                Applicable
                  statements should be mailed to

              	 
	 
	 
	
                This
                  information is provided by

              	 
	
                assignee
                  named above, or

              	 
	
                its
                  agent.

              	 

      

      

       

      

      EXHIBIT
        A-2

       

      FORM
        OF
        CLASS M-[1][2][3][4][5] 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”).

       

      UNLESS
        THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
        TRUST COMPANY TO THE DEPOSITOR OR ITS AGENT FOR REGISTRATION OF TRANSFER,
        EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME
        OF
        CEDE & CO. OR SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE
        OF THE DEPOSITORY TRUST COMPANY AND ANY PAYMENT IS MADE TO CEDE & CO., ANY
        TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY
        PERSON
        IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
        HEREIN.

       

      THIS
        CERTIFICATE IS SUBORDINATE TO THE CLASS A CERTIFICATES [[,/AND] CLASS M-1
        CERTIFICATES] [[,/AND] CLASS M-2 CERTIFICATES] [[,/AND] CLASS M-3 CERTIFICATES]
        [[AND] CLASS M-4 CERTIFICATES] TO THE EXTENT DESCRIBED IN THE AGREEMENT REFERRED
        TO HEREIN.

       

      NO
        TRANSFER OF THIS CERTIFICATE MAY BE MADE EXCEPT IN ACCORDANCE WITH SECTION
        6.02(c) OF THE AGREEMENT REFERRED TO HEREIN.

       

      THE
        CERTIFICATE PRINCIPAL BALANCE OF THIS CERTIFICATE WILL BE DECREASED BY THE
        PRINCIPAL PAYMENTS HEREON AND REALIZED LOSSES ALLOCABLE HERETO AS DESCRIBED
        IN
        THE AGREEMENT REFERRED TO HEREIN. ACCORDINGLY, FOLLOWING THE INITIAL ISSUANCE
        OF
        THE CERTIFICATES, THE CERTIFICATE PRINCIPAL BALANCE OF THIS CERTIFICATE WILL
        BE
        DIFFERENT FROM THE DENOMINATION SHOWN BELOW. ANYONE ACQUIRING THIS CERTIFICATE
        MAY ASCERTAIN ITS CERTIFICATE PRINCIPAL BALANCE BY INQUIRY OF THE SECURITIES
        ADMINISTRATOR NAMED HEREIN.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	
                Series
                  2006-SD2, Class M-[1][2][3][4][5]

              	 	
                Aggregate
                  Certificate Principal Balance of the Class M-[1][2][3][4][5] Certificates
                  as of the Issue Date: $______________

                 

              
	
                Pass-Through
                  Rate: Variable

              	 	
                Denomination:
                  $______________

                 

              
	
                Date
                  of Pooling and Servicing Agreement: May 31, 2006

              	 	
                Master
                  Servicer: Wells Fargo Bank, National Association

                 

              
	
                First
                  Distribution Date: July 25, 2006

              	 	
                Trustee:
                  HSBC Bank USA, National Association

                 

              
	
                Cut-off
                  Date: May 31, 2006

              	 	
                Issue
                  Date: June 26, 2006

                 

              
	
                No.___

              	 	
                CUSIP:_________________

              

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      ACE
        SECURITIES CORP. HOME EQUITY LOAN TRUST, SERIES 2006-SD2

      ASSET
        BACKED PASS-THROUGH CERTIFICATE

       

      evidencing
        a beneficial ownership interest in a Trust Fund (the “Trust Fund”) consisting
        primarily of a pool of conventional one- to four-family, fixed and
        adjustable-rate first and second lien mortgage loans (the “Mortgage Loans”)
        formed and sold by

       

      ACE
        SECURITIES CORP.

       

      THIS
        CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN ACE SECURITIES
        CORP., THE MASTER SERVICER, THE SECURITIES ADMINISTRATOR, THE SERVICERS,
        THE
        TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE NOR
        THE
        UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR INSTRUMENTALITY
        OF THE
        UNITED STATES.

       

      This
        certifies that [Cede & Co.] is the registered owner of a Percentage Interest
        (obtained by dividing the denomination of this Certificate by the aggregate
        Certificate Principal Balance of the Class M-[1][2][3][4][5] Certificates
        as of
        the Issue Date) in that certain beneficial ownership interest evidenced by
        all
        the Class M-[1][2][3][4][5] Certificates in REMIC II created pursuant to
        a
        Pooling and Servicing Agreement, dated as specified above (the “Agreement”),
        among ACE Securities Corp. as depositor (hereinafter called the “Depositor”,
        which term includes any successor entity under the Agreement), Wells Fargo
        Bank,
        National Association as master servicer (the “Master Servicer”) and securities
        administrator (the “Securities Administrator”), Ocwen Loan Servicing, LLC as a
        servicer (“Ocwen”), Wells Fargo Bank, National Association as a servicer (“Wells
        Fargo”) and HSBC Bank USA, National Association as trustee (the “Trustee”), a
        summary of certain of the pertinent provisions of which is set forth hereafter.
        Certain of the Mortgage Loans are being serviced by Select Portfolio Servicing,
        Inc. (“SPS,” together with Ocwen and Wells Fargo, each a “Servicer” and together
        the “Servicers”) pursuant to a separate servicing agreement. To the extent not
        defined herein, the capitalized terms used herein have the meanings assigned
        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.

       

      Pursuant
        to the terms of the Agreement, distributions 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 such 25th
        day (a
“Distribution Date”), commencing on the First Distribution Date specified above,
        to the Person in whose name this Certificate is registered on the Business
        Day
        immediately preceding such Distribution Date (the “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 the Holders of Class
        M-[1][2][3][4][5] Certificates on such Distribution Date pursuant to the
        Agreement.

       

      All
        distributions to the Holder of this Certificate under the Agreement will
        be made
        or caused to be made by the Securities Administrator by wire transfer in
        immediately available funds to the account of the Person entitled thereto
        if
        such Person shall have so notified the Securities Administrator in writing
        at
        least five Business Days prior to the Record Date immediately prior to such
        Distribution Date and is the registered owner of Class M-[1][2][3][4][5]
        Certificates the aggregate initial Certificate Principal Balance of which
        is in
        excess of the lesser of (i) $5,000,000 or (ii) two-thirds of the aggregate
        initial Certificate Principal Balance of the Class M-[1][2][3][4][5]
        Certificates, or otherwise by check mailed by first class mail to the address
        of
        the Person entitled thereto, as such name and address shall appear on the
        Certificate Register. Notwithstanding the above, the final distribution on
        this
        Certificate will be made after due notice by the Securities Administrator
        of the
        pendency of such distribution and only upon presentation and surrender of
        this
        Certificate at the office or agency appointed by the Securities Administrator
        for that purpose as provided in the Agreement.

       

      The
        Pass-Through Rate applicable to the calculation of interest payable with
        respect
        to this Certificate on any Distribution Date shall be a rate per annum equal
        to
        the lesser of (i) One-Month LIBOR plus [___]%, in the case of each
        Distribution Date through and including the Distribution Date on which the
        aggregate principal balance of the Mortgage Loans (and properties acquired
        in
        respect thereof) remaining in the Trust Fund is reduced to less than or equal
        to
        10% of the aggregate principal balance of the Mortgage Loans as of the Cut-off
        Date, or One-Month LIBOR plus [___]%, in the case of any Distribution Date
        thereafter and (ii) the Net WAC Pass-Through Rate for such Distribution
        Date.

       

      This
        Certificate is one of a duly authorized issue of Certificates designated
        as an
        Asset Backed Pass-Through Certificate of the Series specified on the face
        hereof
        (herein called the “Certificates”) and representing a Percentage Interest in the
        Class of Certificates specified on the face hereof equal to the denomination
        specified on the face hereof divided by the aggregate Certificate Principal
        Balance of the Class of Certificates specified on the face hereof.

       

      The
        Certificates are limited in right of payment to certain collections and
        recoveries in respect of the Mortgage Loans, as more specifically set forth
        herein and in the Agreement. As provided in the Agreement, withdrawals from
        the
        Collection Accounts and the Distribution Account may be made from time to
        time
        for purposes other than distributions to Certificateholders, such purposes
        including reimbursement of advances made, or certain expenses incurred, with
        respect to the Mortgage Loans.

       

      The
        Agreement permits, with certain exceptions therein provided, the amendment
        thereof and the modification of the rights and obligations of the Depositor,
        the
        Master Servicer, the Trustee, the Securities Administrator, the Servicers
        party
        thereto and the rights of the Certificateholders under the Agreement at any
        time
        by the Depositor, the Master Servicer, the Trustee, the Securities Administrator
        and the Servicers party thereto with the consent of the Holders of Certificates
        entitled to at least 66% of the Voting Rights. 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 herefor 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
        upon
        surrender of this Certificate for registration of transfer at the offices
        or
        agencies appointed by the Securities Administrator as provided in the Agreement,
        duly endorsed by, or accompanied by an assignment in the form below or other
        written instrument of transfer in form satisfactory to the Securities
        Administrator duly executed by, the Holder hereof or such Holder’s attorney duly
        authorized in writing, and thereupon one or more new Certificates of the
        same
        Class in authorized denominations evidencing the same aggregate Percentage
        Interest will be issued to the designated transferee or
        transferees.

       

      The
        Certificates are issuable in fully registered form only without coupons in
        Classes and denominations representing Percentage Interests specified in
        the
        Agreement. As provided in the Agreement and subject to certain limitations
        therein set forth, the Certificates are exchangeable for new Certificates
        of the
        same Class in authorized denominations evidencing the same aggregate Percentage
        Interest, as requested by the Holder surrendering the same.

       

      No
        transfer of this Certificate may be made except in accordance with Section
        6.02(c) of the Agreement.

       

      No
        service charge will be made for any such registration of transfer or exchange
        of
        Certificates, but the Securities Administrator may require payment of a sum
        sufficient to cover any tax or other governmental charge that may be imposed
        in
        connection with any transfer or exchange of Certificates.

       

      The
        Depositor, the Master Servicer, the Trustee, the Securities Administrator,
        the
        Servicers and any agent of the Depositor, the Master Servicer, the Trustee,
        the
        Securities Administrator or a Servicer may treat the Person in whose name
        this
        Certificate is registered as the owner hereof for all purposes, and none
        of the
        Depositor, the Master Servicer, the Trustee, the Securities Administrator,
        the
        Servicers nor any such agent shall be affected by notice to the
        contrary.

       

      The
        obligations created by the Agreement and the Trust Fund created thereby shall
        terminate upon payment to the Certificateholders of all amounts held by the
        Securities Administrator and required to be paid to them pursuant to the
        Agreement following the earlier of (i) the final payment or other liquidation
        (or any advance with respect thereto) of the last Mortgage Loan remaining
        in
        REMIC I and (ii) the purchase by the party designated in the Agreement at
        a
        price determined as provided in the Agreement from REMIC I of all the Mortgage
        Loans and all property acquired in respect of such Mortgage Loans. The Agreement
        permits, but does not require, the party designated in the Agreement to purchase
        from REMIC I all the Mortgage Loans and all property acquired in respect
        of any
        Mortgage Loan at a price determined as provided in the Agreement. The exercise
        of such right will effect early retirement of the Certificates; provided,
        however, such right to purchase is subject to the aggregate Scheduled Principal
        Balance of the Mortgage Loans (and properties acquired in respect thereof)
        at
        the time of purchase being less than or equal to 10% of the aggregate Scheduled
        Principal Balance of the Mortgage Loans as of the Cut-off Date.

       

      The
        recitals contained herein shall be taken as statements of the Depositor and
        neither the Trustee nor the Securities Administrator assumes any responsibility
        for their correctness.

       

      Unless
        the certificate of authentication hereon has been executed by the Securities
        Administrator by manual signature, this Certificate shall not be entitled
        to any
        benefit under the Agreement or be valid for any purpose.

       

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF, the Securities Administrator has caused this Certificate
        to be
        duly executed.

       

      Dated:

       

      
        	 	 	 	 	 	 	 	
                WELLS
                  FARGO BANK, NATIONAL ASSOCIATION

                as
                  Securities Administrator

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:

              	 
	 	 	 	 	 	 	 	 	
                Authorized
                  Officer

              
	 	 	 	 	 	 	 	 	 

      

      

       

      

      

      CERTIFICATE
        OF AUTHENTICATION

       

      This
        is
        one of the Class M-[1][2][3][4][5] Certificates referred to in the
        within-mentioned Agreement.

       

      
        	 	 	 	 	 	 	 	
                WELLS
                  FARGO BANK, NATIONAL ASSOCIATION

                as
                  Securities Administrator

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:

              	 
	 	 	 	 	 	 	 	 	
                Authorized
                  Signatory

              
	 	 	 	 	 	 	 	 	 

      

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      ABBREVIATIONS

       

      The
        following abbreviations, when used in the inscription on the face of this
        instrument, shall be construed as though they were written out in full according
        to applicable laws or regulations:

      
         

        
          	
                  TEN
                    COM -

                	
                  as
                    tenants in common

                	
                  UNIF
                    GIFT MIN ACT -

                	
                        
                       Custodian        
                          

                  (Cust) 
                     (Minor)

                  under
                    Uniform Gifts 

                  to
                    Minors Act

                
	
                  TEN
                    ENT -

                	
                  as
                    tenants by the entireties

                	 	
                  ________________

                  (State)

                
	
                  JT
                    TEN -

                	
                  as
                    joint tenants with right 

                  if
                    survivorship and not as 

                  tenants
                    in common

                	 	 
	 	 	 	 
	
                  Additional
                    abbreviations may also be used though not in the above
                    list.

                

        

         

      

      ASSIGNMENT

       

      
        	
                FOR
                  VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s)
                  

              
	
                unto

              	 
	 	 
	 	 

      

       (Please
        print or typewrite name, address including postal zip code, and Taxpayer
        Identification Number of assignee)

       

      a
        Percentage Interest equal to _____% evidenced by the within Asset Backed
        Pass-Through Certificate and hereby authorize(s) the registration of transfer
        of
        such interest to assignee on the Certificate Register of the Trust
        Fund.

       

      I
        (we)
        further direct the Securities Administrator to issue a new Certificate of
        a like
        Percentage Interest and Class to the above named assignee and deliver such
        Certificate to the following address: 

      
        	 	 	
                .

              

      

      

      
        	
                Dated:

              	 
	 	
                Signature
                  by or on behalf of assignor

              
	 	 
	 	 
	 	
                Signature
                  Guaranteed

              

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      DISTRIBUTION
        INSTRUCTIONS

       

      The
        assignee should include the following for purposes of distribution:

       

      
        	
                Distributions
                  shall be made, by wire transfer or otherwise, in immediately available
                  

              
	
                funds
                  to

              	 
	 
	
                for
                  the account of

              	 
	
                account
                  number

              	 	
                or,
                  if mailed by check, to

              
	 
	
                Applicable
                  statements should be mailed to

              	 
	 
	 
	
                This
                  information is provided by

              	 
	
                assignee
                  named above, or

              	 
	
                its
                  agent.

              	 

      

      

      EXHIBIT
        A-3

       

      FORM
        OF
        CLASS CE-1 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 IS SUBORDINATE TO THE CLASS A CERTIFICATES AND THE MEZZANINE
        CERTIFICATES TO THE EXTENT DESCRIBED IN THE AGREEMENT REFERRED TO
        HEREIN.

       

      THIS
        CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES
        ACT OF
        1933, AS AMENDED (THE “1933 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 1933 ACT AND OTHER APPLICABLE LAWS AND (1) OUTSIDE OF
        THE
        UNITED STATES WITHIN THE MEANING OF AND IN COMPLIANCE WITH REGULATION S UNDER
        THE 1933 ACT (“REGULATION S”), OR (2) WITHIN THE UNITED STATES TO
(A)
        “QUALIFIED INSTITUTIONAL BUYERS” WITHIN THE MEANING OF AND IN COMPLIANCE WITH
        RULE 144A UNDER THE 1933 ACT (“RULE 144A”) OR (B) TO INSTITUTIONAL INVESTORS
        THAT ARE “ACCREDITED INVESTORS” WITHIN THE MEANING OF RULE 501(A)(1), (2), (3)
        OR (7) OF “REGULATION D” UNDER THE 1933 ACT.

       

      NO
        TRANSFER OF THIS CERTIFICATE MAY BE MADE TO ANY PERSON, UNLESS THE TRANSFEREE
        PROVIDES A CERTIFICATION PURSUANT TO SECTION 6.02(c) OF THE AGREEMENT REFERRED
        TO HEREIN.

       

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	
                Series
                  2006-SD2, Class CE-1

              	 	
                Aggregate
                  Notional Amount of the Class CE-1 Certificates as of the Issue
                  Date:
                  $_____________

                 

              
	
                Pass-Through
                  Rate: Variable

              	 	
                Denomination:
                  $_________________

                 

              
	
                Date
                  of Pooling and Servicing Agreement: May 31, 2006

              	 	
                Master
                  Servicer: Wells Fargo Bank, National Association

                 

              
	
                First
                  Distribution Date: July 25, 2006

              	 	
                Trustee:
                  HSBC Bank USA, National Association

                 

              
	
                Cut-off
                  Date: May 31, 2006

              	 	
                Issue
                  Date: June 26, 2006

                 

              
	
                No.
                  __

              	 
	 	 

      

      

      ACE
        SECURITIES CORP. HOME EQUITY LOAN TRUST, SERIES 2006-SD2

      ASSET
        BACKED PASS-THROUGH CERTIFICATE

       

      evidencing
        a beneficial ownership interest in a Trust Fund (the “Trust Fund”) consisting
        primarily of a pool of conventional one- to four-family, fixed and
        adjustable-rate, first and second lien mortgage loans (the “Mortgage Loans”)
        formed and sold by

       

      ACE
        SECURITIES CORP.

       

      THIS
        CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN ACE SECURITIES
        CORP., THE MASTER SERVICER, THE SECURITIES ADMINISTRATOR, THE SERVICERS,
        THE
        TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE NOR
        THE
        UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR INSTRUMENTALITY
        OF THE
        UNITED STATES.

       

      This
        certifies that [_______________] is the registered owner of a Percentage
        Interest (obtained by dividing the denomination of this Certificate by the
        aggregate Notional Amount of the Class CE-1 Certificates as of the Issue
        Date)
        in that certain beneficial ownership interest evidenced by all the Class
        CE-1
        Certificates in REMIC II created pursuant to a Pooling and Servicing Agreement,
        dated as specified above (the “Agreement”), among ACE Securities Corp. as
        depositor (hereinafter called the “Depositor,” which term includes any successor
        entity under the Agreement), Wells Fargo Bank, National Association as master
        servicer (the “Master Servicer”) and securities administrator (the “Securities
        Administrator”), Ocwen Loan Servicing, LLC as a servicer (“Ocwen”), Wells Fargo
        Bank, National Association as a servicer (“Wells Fargo”) and HSBC Bank USA,
        National Association as trustee (the “Trustee”), a summary of certain of the
        pertinent provisions of which is set forth hereafter. Certain of the Mortgage
        Loans are being serviced by Select Portfolio Servicing, Inc. (“SPS,” together
        with Ocwen and Wells Fargo, each a “Servicer” and together the “Servicers”)
        pursuant to a separate servicing agreement. To the extent not defined herein,
        the capitalized terms used herein have the meanings assigned 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.

       

      Interest
        on this Certificate will accrue during the month prior to the month in which
        a
        Distribution Date (as hereinafter defined) occurs on the Notional Amount
        (as
        defined in the Agreement) hereof at a per annum rate equal to the applicable
        Pass-Through Rate as set forth in the Agreement. Pursuant to the terms of
        the
        Agreement, distributions 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 such 25th
        day (a
“Distribution Date”), commencing on the First Distribution Date specified above,
        to the Person in whose name this Certificate is registered on the last Business
        Day of the calendar month immediately preceding the month in which the related
        Distribution Date occurs (the “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 the Holders of Class CE-1 Certificates on such Distribution
        Date pursuant to the Agreement.

       

      All
        distributions to the Holder of this Certificate under the Agreement will
        be made
        or caused to be made by the Securities Administrator by wire transfer in
        immediately available funds to the account of the Person entitled thereto
        if
        such Person shall have so notified the Securities Administrator in writing
        at
        least five Business Days prior to the Record Date immediately prior to such
        Distribution Date and is the registered owner of Class CE-1 Certificates
        the
        aggregate initial Certificate Principal Balance of which is in excess of
        the
        lesser of (i) $5,000,000 or (ii) two-thirds of the aggregate initial Certificate
        Principal Balance of the Class CE-1 Certificates, or otherwise by check mailed
        by first class mail to the address of the Person entitled thereto, as such
        name
        and address shall appear on the Certificate Register. Notwithstanding the
        above,
        the final distribution on this Certificate will be made after due notice
        by the
        Securities Administrator of the pendency of such distribution and only upon
        presentation and surrender of this Certificate at the office or agency appointed
        by the Securities Administrator for that purpose as provided in the
        Agreement.

       

      This
        Certificate is one of a duly authorized issue of Certificates designated
        as an
        Asset Backed Pass-Through Certificate of the Series specified on the face
        hereof
        (herein called the “Certificates”) and representing a Percentage Interest in the
        Class of Certificates specified on the face hereof equal to the denomination
        specified on the face hereof divided by the aggregate Notional Amount of
        the
        Class of Certificates specified on the face hereof.

       

      The
        Certificates are limited in right of payment to certain collections and
        recoveries respecting the Mortgage Loans, all as more specifically set forth
        herein and in the Agreement. As provided in the Agreement, withdrawals from
        the
        Collection Accounts and the Distribution Account may be made from time to
        time
        for purposes other than distributions to Certificateholders, such purposes
        including reimbursement of advances made, or certain expenses incurred, with
        respect to the Mortgage Loans.

       

      The
        Agreement permits, with certain exceptions therein provided, the amendment
        thereof and the modification of the rights and obligations of the Depositor,
        the
        Master Servicer, the Trustee, the Securities Administrator, the Servicers
        party
        thereto and the rights of the Certificateholders under the Agreement at any
        time
        by the Depositor, the Master Servicer, the Trustee, the Securities Administrator
        and the Servicers party thereto with the consent of the Holders of Certificates
        entitled to at least 66% of the Voting Rights. 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 herefor 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
        upon
        surrender of this Certificate for registration of transfer at the offices
        or
        agencies appointed by the Securities Administrator as provided in the Agreement,
        duly endorsed by, or accompanied by an assignment in the form below or other
        written instrument of transfer in form satisfactory to the Securities
        Administrator duly executed by, the Holder hereof or such Holder’s attorney duly
        authorized in writing, and thereupon one or more new Certificates of the
        same
        Class in authorized denominations evidencing the same aggregate Percentage
        Interest will be issued to the designated transferee or
        transferees.

       

      No
        transfer of this Certificate shall be made unless the transfer is made pursuant
        to an effective registration statement under the 1933 Act, and an effective
        registration or qualification under applicable state securities laws, or
        is made
        in a transaction that does not require such registration or qualification.
        In
        the event that such a transfer of this Certificate is to be made without
        registration or qualification, the Securities Administrator shall require
        receipt of (i) if such transfer is purportedly being made in reliance upon
        Rule
        144A or Regulation S under the 1933 Act, written certifications from the
        Holder
        of the Certificate desiring to effect the transfer, and from such Holder’s
        prospective transferee, substantially in the forms attached to the Agreement
        as
        Exhibit B-1, (ii) if such transfer is purportedly being made in reliance
        upon
        Rule 501(a) under the 1933 Act, written certifications from the Holder of
        the
        Certificate desiring to effect the transfer and from such Holder’s prospective
        transferee, substantially in the form attached to the Agreement as Exhibit
        B-2
        and (iii) in all other cases, an Opinion of Counsel satisfactory to it that
        such
        transfer may be made without such registration or qualification (which Opinion
        of Counsel shall not be an expense of the Trust Fund or of the Depositor,
        the
        Trustee, the Master Servicer or the Securities Administrator in their respective
        capacities as such), together with copies of the written certification(s)
        of the
        Holder of the Certificate desiring to effect the transfer and/or such Holder’s
        prospective transferee upon which such Opinion of Counsel is based. None
        of the
        Depositor, the Trustee or the Securities Administrator is obligated to register
        or qualify the Class of Certificates specified on the face hereof under the
        1933
        Act or any other securities law or to take any action not otherwise required
        under the Agreement to permit the transfer of such Certificates without
        registration or qualification. Any Holder desiring to effect a transfer of
        this
        Certificate shall be required to indemnify the Trustee, the Depositor, the
        Master Servicer and the Securities Administrator against any liability that
        may
        result if the transfer is not so exempt or is not made in accordance with
        such
        federal and state laws.

       

      No
        transfer of this Certificate shall be made except in accordance with Section
        6.02(c) of the Agreement.

       

      The
        Certificates are issuable in fully registered form only without coupons in
        Classes and denominations representing Percentage Interests specified in
        the
        Agreement. As provided in the Agreement and subject to certain limitations
        therein set forth, the Certificates are exchangeable for new Certificates
        of the
        same Class in authorized denominations 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 of Certificates,
        but the Securities Administrator may require payment of a sum sufficient
        to
        cover any tax or other governmental charge that may be imposed in connection
        with any transfer or exchange of Certificates.

       

      The
        Depositor, the Master Servicer, the Trustee, the Securities Administrator,
        the
        Servicers and any agent of the Depositor, the Master Servicer, the Trustee,
        the
        Securities Administrator or a Servicer may treat the Person in whose name
        this
        Certificate is registered as the owner hereof for all purposes, and none
        of the
        Depositor, the Master Servicer, the Trustee, the Securities Administrator,
        the
        Servicers nor any such agent shall be affected by notice to the
        contrary.

       

      The
        obligations created by the Agreement and the Trust Fund created thereby shall
        terminate upon payment to the Certificateholders of all amounts held by the
        Securities Administrator and required to be paid to them pursuant to the
        Agreement following the earlier of (i) the final payment or other liquidation
        (or any advance with respect thereto) of the last Mortgage Loan remaining
        in
        REMIC I and (ii) the purchase by the party designated in the Agreement at
        a
        price determined as provided in the Agreement from REMIC I of all the Mortgage
        Loans and all property acquired in respect of such Mortgage Loans. The Agreement
        permits, but does not require, the party designated in the Agreement to purchase
        from REMIC I all the Mortgage Loans and all property acquired in respect
        of any
        Mortgage Loan at a price determined as provided in the Agreement. The exercise
        of such right will effect early retirement of the Certificates; provided,
        however, such right to purchase is subject to the aggregate Scheduled Principal
        Balance of the Mortgage Loans (and properties acquired in respect hereof)
        at the
        time of purchase being less than or equal to 10% of the aggregate Scheduled
        Principal Balance of the Mortgage Loans as of the Cut-off Date.

       

      The
        recitals contained herein shall be taken as statements of the Depositor and
        neither the Trustee nor the Securities Administrator assumes any responsibility
        for their correctness.

       

      Unless
        the certificate of authentication hereon has been executed by the Securities
        Administrator, by manual signature, this Certificate shall not be entitled
        to
        any benefit under the Agreement or be valid for any purpose.

       

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF, the Securities Administrator has caused this Certificate
        to be
        duly executed.

       

      Dated:

      
        	 	 	 	 	 	 	 	
                WELLS
                  FARGO BANK, NATIONAL ASSOCIATION

                as
                  Securities Administrator

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:

              	 
	 	 	 	 	 	 	 	 	
                Authorized
                  Officer

              
	 	 	 	 	 	 	 	 	 

      

      

      

      

      CERTIFICATE
        OF AUTHENTICATION

       

      This
        is
        one of the Class CE-1 Certificates referred to in the within-mentioned
        Agreement.

       

      
        	 	 	 	 	 	 	 	
                WELLS
                  FARGO BANK, NATIONAL ASSOCIATION

                as
                  Securities Administrator

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:

              	 
	 	 	 	 	 	 	 	 	
                Authorized
                  Officer

              
	 	 	 	 	 	 	 	 	 

      

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      ABBREVIATIONS

       

      The
        following abbreviations, when used in the inscription on the face of this
        instrument, shall be construed as though they were written out in full according
        to applicable laws or regulations:

      
         

        
          	
                  TEN
                    COM -

                	
                  as
                    tenants in common

                	
                  UNIF
                    GIFT MIN ACT -

                	
                        
                       Custodian        
                          

                  (Cust) 
                     (Minor)

                  under
                    Uniform Gifts 

                  to
                    Minors Act

                
	
                  TEN
                    ENT -

                	
                  as
                    tenants by the entireties

                	 	
                  ________________

                  (State)

                
	
                  JT
                    TEN -

                	
                  as
                    joint tenants with right 

                  if
                    survivorship and not as 

                  tenants
                    in common

                	 	 
	 	 	 	 
	
                  Additional
                    abbreviations may also be used though not in the above
                    list.

                

        

        
 

      

      ASSIGNMENT

       

      
        	
                FOR
                  VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s)
                  

              
	
                unto

              	 
	 	 
	 	 

      

      (Please
        print or typewrite name, address including postal zip code, and Taxpayer
        Identification Number of assignee) 

       

      a
        Percentage Interest equal to ____% evidenced by the within Asset Backed
        Pass-Through Certificate and hereby authorize(s) the registration of transfer
        of
        such interest to assignee on the Certificate Register of the Trust
        Fund.

       

      I
        (we)
        further direct the Securities Administrator to issue a new Certificate of
        a like
        Percentage Interest and Class to the above named assignee and deliver such
        Certificate to the following address: 

      
        	 	 	
                .

              

      

      

       

      

       

      
        	
                Dated:

              	 
	 	
                Signature
                  by or on behalf of assignor

              
	 	 
	 	 
	 	
                Signature
                  Guaranteed

              

      

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      DISTRIBUTION
        INSTRUCTIONS

       

      The
        assignee should include the following for purposes of distribution:

       

      
        	
                Distributions
                  shall be made, by wire transfer or otherwise, in immediately available
                  

              
	
                funds
                  to

              	 
	 
	
                for
                  the account of

              	 
	
                account
                  number

              	 	
                or,
                  if mailed by check, to

              
	 
	
                Applicable
                  statements should be mailed to

              	 
	 
	 
	
                This
                  information is provided by

              	 
	
                assignee
                  named above, or

              	 
	
                its
                  agent.

              	 

      

      

       

      

       

      EXHIBIT
        A-4

       

      FORM
        OF
        CLASS CE-2 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 AND WILL NOT BE REGISTERED UNDER THE SECURITIES
        ACT OF
        1933, AS AMENDED (THE “1933 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 1933 ACT AND OTHER APPLICABLE LAWS AND (1) OUTSIDE OF THE UNITED STATES
        WITHIN THE MEANING OF AND IN COMPLIANCE WITH REGULATION S UNDER THE 1933
        ACT
        (“REGULATION S”), OR (2) WITHIN THE UNITED STATES TO (A) “QUALIFIED
        INSTITUTIONAL BUYERS” WITHIN THE MEANING OF AND IN COMPLIANCE WITH RULE 144A
        UNDER THE 1933 ACT (“RULE 144A”) OR (B) TO INSTITUTIONAL INVESTORS THAT ARE
“ACCREDITED INVESTORS” WITHIN THE MEANING OF RULE 501(A)(1), (2), (3) OR (7) OF
“REGULATION D” UNDER THE 1933 ACT.

       

      NO
        TRANSFER OF THIS CERTIFICATE MAY BE MADE TO ANY PERSON, UNLESS THE TRANSFEREE
        PROVIDES A CERTIFICATION PURSUANT TO SECTION 6.02(c) OF THE AGREEMENT REFERRED
        TO HEREIN.

       

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	
                Series
                  2006-SD2, Class CE-2

              	 	
                Aggregate
                  Percentage Interest of the Class CE-2 Certificates as of the Issue
                  Date:
                  100.00%

                 

              
	
                Pass-Through
                  Rate: Variable

              	 	
                Master
                  Servicer: Wells Fargo Bank, National Association

                 

              
	
                Date
                  of Pooling and Servicing Agreement: May 31, 2006

              	 	
                Trustee:
                  HSBC Bank USA, National Association

                 

              
	
                First
                  Distribution Date: July 25, 2006

              	 	
                Issue
                  Date: June 26, 2006

                 

              
	
                Cut-off
                  Date: May 31, 2006

                 

              	 	 
	
                No.
                  __

              	 
	 	 

      

      

      ACE
        SECURITIES CORP. HOME EQUITY LOAN TRUST, SERIES 2006-SD2

      ASSET
        BACKED PASS-THROUGH CERTIFICATE

       

      evidencing
        a beneficial ownership interest in a Trust Fund (the “Trust Fund”) consisting
        primarily of a pool of conventional one- to four-family, fixed and
        adjustable-rate, first and second lien mortgage loans (the “Mortgage Loans”)
        formed and sold by

       

      ACE
        SECURITIES CORP.

       

      THIS
        CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN ACE SECURITIES
        CORP., THE MASTER SERVICER, THE SECURITIES ADMINISTRATOR, THE SERVICERS,
        THE
        TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE NOR
        THE
        UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR INSTRUMENTALITY
        OF THE
        UNITED STATES.

       

      This
        certifies that ________________ is the registered owner of a Percentage Interest
        set forth above in that certain beneficial ownership interest evidenced by
        all
        the Class CE-2 Certificates in REMIC II created pursuant to a Pooling and
        Servicing Agreement, dated as specified above (the “Agreement”), among ACE
        Securities Corp. as depositor (hereinafter called the “Depositor,” which term
        includes any successor entity under the Agreement), Wells Fargo Bank, National
        Association as master servicer (the “Master Servicer”) and securities
        administrator (the “Securities Administrator”), Ocwen Loan Servicing, LLC as a
        servicer (“Ocwen”), Wells Fargo Bank, National Association as a servicer (“Wells
        Fargo”) and HSBC Bank USA, National Association as trustee (the “Trustee”), a
        summary of certain of the pertinent provisions of which is set forth hereafter.
        Certain of the Mortgage Loans are being serviced by Select Portfolio Servicing,
        Inc. (“SPS,” together with Ocwen and Wells Fargo, each a “Servicer” and together
        the “Servicers”) pursuant to a separate servicing agreement. To the extent not
        defined herein, the capitalized terms used herein have the meanings assigned
        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.

       

      Interest
        on this Certificate will accrue during the month prior to the month in which
        a
        Distribution Date (as hereinafter defined) occurs on the Notional Balance
        hereof
        at a per annum rate equal to the applicable Pass-Through Rate as set forth
        in
        the Agreement. Pursuant to the terms of the Agreement, distributions 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 such 25th
        day (a
“Distribution Date”), commencing on the First Distribution Date specified above,
        to the Person in whose name this Certificate is registered on the last Business
        Day of the calendar month immediately preceding the month in which the related
        Distribution Date occurs (the “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 the Holders of Class CE-2 Certificates on such Distribution
        Date pursuant to the Agreement.

       

      All
        distributions to the Holder of this Certificate under the Agreement will
        be made
        or caused to be made by the Securities Administrator by wire transfer in
        immediately available funds to the account of the Person entitled thereto
        if
        such Person shall have so notified the Securities Administrator in writing
        at
        least five Business Days prior to the Record Date immediately prior to such
        Distribution Date and is the registered owner of Class CE-2 Certificates,
        or
        otherwise by check mailed by first class mail to the address of the Person
        entitled thereto, as such name and address shall appear on the Certificate
        Register. Notwithstanding the above, the final distribution on this Certificate
        will be made after due notice by the Securities Administrator of the pendency
        of
        such distribution and only upon presentation and surrender of this Certificate
        at the office or agency appointed by the Securities Administrator for that
        purpose as provided in the Agreement.

       

      This
        Certificate is one of a duly authorized issue of Certificates designated
        as an
        Asset Backed Pass-Through Certificate of the Series specified on the face
        hereof
        (herein called the “Certificates”) and representing a Percentage Interest in the
        Class of Certificates specified on the face hereof.

       

      The
        Certificates are limited in right of payment to certain collections and
        recoveries respecting the Mortgage Loans, all as more specifically set forth
        herein and in the Agreement. As provided in the Agreement, withdrawals from
        the
        Collection Accounts and the Distribution Account may be made from time to
        time
        for purposes other than distributions to Certificateholders, such purposes
        including reimbursement of advances made, or certain expenses incurred, with
        respect to the Mortgage Loans.

       

      The
        Agreement permits, with certain exceptions therein provided, the amendment
        thereof and the modification of the rights and obligations of the Depositor,
        the
        Master Servicer, the Trustee, the Securities Administrator, the Servicers
        party
        thereto and the rights of the Certificateholders under the Agreement at any
        time
        by the Depositor, the Master Servicer, the Trustee, the Securities Administrator
        and the Servicers party thereto with the consent of the Holders of Certificates
        entitled to at least 66% of the Voting Rights. 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 herefor 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
        upon
        surrender of this Certificate for registration of transfer at the offices
        or
        agencies appointed by the Securities Administrator as provided in the Agreement,
        duly endorsed by, or accompanied by an assignment in the form below or other
        written instrument of transfer in form satisfactory to the Securities
        Administrator duly executed by, the Holder hereof or such Holder’s attorney duly
        authorized in writing, and thereupon one or more new Certificates of the
        same
        Class in authorized denominations evidencing the same aggregate Percentage
        Interest will be issued to the designated transferee or
        transferees.

       

      No
        transfer of this Certificate shall be made unless the transfer is made pursuant
        to an effective registration statement under the 1933 Act, and an effective
        registration or qualification under applicable state securities laws, or
        is made
        in a transaction that does not require such registration or qualification.
        In
        the event that such a transfer of this Certificate is to be made without
        registration or qualification, the Securities Administrator shall require
        receipt of (i) if such transfer is purportedly being made in reliance upon
        Rule
        144A or Regulation S under the 1933 Act, written certifications from the
        Holder
        of the Certificate desiring to effect the transfer, and from such Holder’s
        prospective transferee, substantially in the forms attached to the Agreement
        as
        Exhibit B-1, (ii) if such transfer is purportedly being made in reliance
        upon
        Rule 501(a) under the 1933 Act, written certifications from the Holder of
        the
        Certificate desiring to effect the transfer and from such Holder’s prospective
        transferee, substantially in the form attached to the Agreement as Exhibit
        B-2
        and (iii) in all other cases, an Opinion of Counsel satisfactory to it that
        such
        transfer may be made without such registration or qualification (which Opinion
        of Counsel shall not be an expense of the Trust Fund or of the Depositor,
        the
        Trustee, the Master Servicer or the Securities Administrator in their respective
        capacities as such), together with copies of the written certification(s)
        of the
        Holder of the Certificate desiring to effect the transfer and/or such Holder’s
        prospective transferee upon which such Opinion of Counsel is based. None
        of the
        Depositor, the Trustee or the Securities Administrator is obligated to register
        or qualify the Class of Certificates specified on the face hereof under the
        1933
        Act or any other securities law or to take any action not otherwise required
        under the Agreement to permit the transfer of such Certificates without
        registration or qualification. Any Holder desiring to effect a transfer of
        this
        Certificate shall be required to indemnify the Trustee, the Depositor, the
        Master Servicer and the Securities Administrator against any liability that
        may
        result if the transfer is not so exempt or is not made in accordance with
        such
        federal and state laws.

       

      No
        transfer of this Certificate shall be made except in accordance with Section
        6.02(c) of the Agreement.

       

      The
        Certificates are issuable in fully registered form only without coupons in
        Classes and denominations representing Percentage Interests specified in
        the
        Agreement. As provided in the Agreement and subject to certain limitations
        therein set forth, the Certificates are exchangeable for new Certificates
        of the
        same Class in authorized denominations 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 of Certificates,
        but the Securities Administrator may require payment of a sum sufficient
        to
        cover any tax or other governmental charge that may be imposed in connection
        with any transfer or exchange of Certificates.

       

      The
        Depositor, the Master Servicer, the Trustee, the Securities Administrator,
        the
        Servicers and any agent of the Depositor, the Master Servicer, the Trustee,
        the
        Securities Administrator or a Servicer may treat the Person in whose name
        this
        Certificate is registered as the owner hereof for all purposes, and none
        of the
        Depositor, the Master Servicer, the Trustee, the Securities Administrator,
        the
        Servicers nor any such agent shall be affected by notice to the
        contrary.

       

      The
        obligations created by the Agreement and the Trust Fund created thereby shall
        terminate upon payment to the Certificateholders of all amounts held by the
        Securities Administrator and required to be paid to them pursuant to the
        Agreement following the earlier of (i) the final payment or other liquidation
        (or any advance with respect thereto) of the last Mortgage Loan remaining
        in
        REMIC I and (ii) the purchase by the party designated in the Agreement at
        a
        price determined as provided in the Agreement from REMIC I of all the Mortgage
        Loans and all property acquired in respect of such Mortgage Loans. The Agreement
        permits, but does not require, the party designated in the Agreement to purchase
        from REMIC I all the Mortgage Loans and all property acquired in respect
        of any
        Mortgage Loan at a price determined as provided in the Agreement. The exercise
        of such right will effect early retirement of the Certificates; provided,
        however, such right to purchase is subject to the aggregate Scheduled Principal
        Balance of the Mortgage Loans (and properties acquired in respect hereof)
        at the
        time of purchase being less than or equal to 10% of the aggregate Scheduled
        Principal Balance of the Mortgage Loans as of the Cut-off Date.

       

      The
        recitals contained herein shall be taken as statements of the Depositor and
        neither the Trustee nor the Securities Administrator assumes any responsibility
        for their correctness.

       

      Unless
        the certificate of authentication hereon has been executed by the Securities
        Administrator, by manual signature, this Certificate shall not be entitled
        to
        any benefit under the Agreement or be valid for any purpose.

       

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF, the Securities Administrator has caused this Certificate
        to be
        duly executed.

       

      Dated:

      
        	 	 	 	 	 	 	 	
                WELLS
                  FARGO BANK, NATIONAL ASSOCIATION

                as
                  Securities Administrator

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:

              	 
	 	 	 	 	 	 	 	 	
                Authorized
                  Officer

              
	 	 	 	 	 	 	 	 	 

      

      

      

      

      CERTIFICATE
        OF AUTHENTICATION

       

      This
        is
        one of the Class CE-2 Certificates referred to in the within-mentioned
        Agreement.

       

      
        	 	 	 	 	 	 	 	
                WELLS
                  FARGO BANK, NATIONAL ASSOCIATION

                as
                  Securities Administrator

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:

              	 
	 	 	 	 	 	 	 	 	
                Authorized
                  Officer

              
	 	 	 	 	 	 	 	 	 

      

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      ABBREVIATIONS

       

      The
        following abbreviations, when used in the inscription on the face of this
        instrument, shall be construed as though they were written out in full according
        to applicable laws or regulations:

      
         

        
          	
                  TEN
                    COM -

                	
                  as
                    tenants in common

                	
                  UNIF
                    GIFT MIN ACT -

                	
                        
                       Custodian        
                          

                  (Cust) 
                     (Minor)

                  under
                    Uniform Gifts 

                  to
                    Minors Act

                
	
                  TEN
                    ENT -

                	
                  as
                    tenants by the entireties

                	 	
                  ________________

                  (State)

                
	
                  JT
                    TEN -

                	
                  as
                    joint tenants with right 

                  if
                    survivorship and not as 

                  tenants
                    in common

                	 	 
	 	 	 	 
	
                  Additional
                    abbreviations may also be used though not in the above
                    list.

                

        

        
 

      

      ASSIGNMENT

       

      
        	
                FOR
                  VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s)
                  

              
	
                unto

              	 
	 	 
	 	 

      

      (Please
        print or typewrite name, address including postal zip code, and Taxpayer
        Identification Number of assignee) 

       

      a
        Percentage Interest equal to ____% evidenced by the within Asset Backed
        Pass-Through Certificate and hereby authorize(s) the registration of transfer
        of
        such interest to assignee on the Certificate Register of the Trust
        Fund.

       

      I
        (we)
        further direct the Securities Administrator to issue a new Certificate of
        a like
        Percentage Interest and Class to the above named assignee and deliver such
        Certificate to the following address: 

      
        	 	 	
                .

              

      

      

       

      
        	
                Dated:

              	 
	 	
                Signature
                  by or on behalf of assignor

              
	 	 
	 	 
	 	
                Signature
                  Guaranteed

              

      

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      DISTRIBUTION
        INSTRUCTIONS

       

      The
        assignee should include the following for purposes of distribution:

       

      
        	
                Distributions
                  shall be made, by wire transfer or otherwise, in immediately available
                  

              
	
                funds
                  to

              	 
	 
	
                for
                  the account of

              	 
	
                account
                  number

              	 	
                or,
                  if mailed by check, to

              
	 
	
                Applicable
                  statements should be mailed to

              	 
	 
	 
	
                This
                  information is provided by

              	 
	
                assignee
                  named above, or

              	 
	
                its
                  agent.

              	 

      

      

       

      

      

      

      EXHIBIT
        A-5

       

      FORM
        OF
        CLASS 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 AND WILL NOT BE REGISTERED UNDER THE SECURITIES
        ACT OF
        1933, AS AMENDED (THE “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
        ACT AND OTHER APPLICABLE LAWS AND (1) OUTSIDE OF THE UNITED STATES WITHIN
        THE
        MEANING OF AND IN COMPLIANCE WITH REGULATION S UNDER THE ACT (“REGULATION S”),
        OR (2) WITHIN THE UNITED STATES TO (A) “QUALIFIED INSTITUTIONAL BUYERS” WITHIN
        THE MEANING OF AND IN COMPLIANCE WITH RULE 144A UNDER THE ACT (“RULE 144A”) OR
        (B) TO INSTITUTIONAL INVESTORS THAT ARE “ACCREDITED INVESTORS” WITHIN THE
        MEANING OF RULE 501(A)(1), (2), (3) OR (7) OF “REGULATION D” UNDER THE
        ACT.

       

      NO
        TRANSFER OF THIS CERTIFICATE MAY BE MADE TO ANY PERSON, UNLESS THE TRANSFEREE
        PROVIDES A CERTIFICATION PURSUANT TO SECTION 6.02(c) OF THE AGREEMENT REFERRED
        TO HEREIN.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	
                Series
                  2006-SD2, Class P

              	 	
                Aggregate
                  Certificate Principal Balance of the Class P Certificates as of
                  the Issue
                  Date: $100.00

                 

              
	
                Date
                  of Pooling and Servicing Agreement: May 31, 2006

              	 	
                Denomination:
                  $100.00

                 

              
	
                First
                  Distribution Date: July 25, 2006

              	 	
                Master
                  Servicer: Wells Fargo Bank, National Association

                 

              
	
                Cut-off
                  Date: May 31, 2006

              	 	
                Trustee:
                  HSBC Bank USA, National Association

                 

              
	
                No.
                  __

              	 	
                Issue
                  Date: June 26, 2006

              

      

       

       

      ACE
        SECURITIES CORP. HOME EQUITY LOAN TRUST, SERIES 2006-SD2

      ASSET
        BACKED PASS-THROUGH CERTIFICATE

       

      evidencing
        a beneficial ownership interest in a Trust Fund (the “Trust Fund”) consisting
        primarily of a pool of conventional one- to four-family, first and second
        lien,
        fixed and adjustable-rate mortgage loans (the “Mortgage Loans”) formed and sold
        by

       

      ACE
        SECURITIES CORP.

       

      THIS
        CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN ACE SECURITIES
        CORP., THE MASTER SERVICER, THE SECURITIES ADMINISTRATOR, THE SERVICERS,
        THE
        TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE NOR
        THE
        UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR INSTRUMENTALITY
        OF THE
        UNITED STATES.

       

      This
        certifies that____________________ is the registered owner of a Percentage
        Interest (obtained by dividing the denomination of this Certificate by the
        aggregate Certificate Principal Balance of the Class P Certificates as of
        the
        Issue Date) in that certain beneficial ownership interest evidenced by all
        of
        the Class P Certificates in REMIC II created pursuant to a Pooling and Servicing
        Agreement, dated as specified above (the “Agreement”), among ACE Securities
        Corp., as depositor (hereinafter called the “Depositor”, which term includes any
        successor entity under the Agreement), Wells Fargo Bank, National Association
        as
        master servicer (the “Master Servicer”) and securities administrator (the
“Securities Administrator”), Wells Fargo Bank, National Association as a
        servicer (“Wells Fargo”), Ocwen Loan Servicing, LLC as a servicer (“Ocwen”) and
        HSBC Bank USA, National Association as trustee (the “Trustee”), a summary of
        certain of the pertinent provisions of which is set forth hereafter. Certain
        of
        the Mortgage Loans are being serviced by Select Portfolio Servicing, Inc.
        (“SPS”, together with Ocwen and Wells Fargo, each a “Servivcer” and together the
“Servicers”) pursuant to a separate servicing agreement. To the extent not
        defined herein, the capitalized terms used herein have the meanings assigned
        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.

       

      Pursuant
        to the terms of the Agreement, distributions 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 such 25th
        day (a
“Distribution Date”), commencing on the First Distribution Date specified above,
        to the Person in whose name this Certificate is registered on the last Business
        Day of the calendar month immediately preceding the month in which the related
        Distribution Date occurs (the “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 the Holders of Class P Certificates on such Distribution
        Date pursuant to the Agreement.

       

      All
        distributions to the Holder of this Certificate under the Agreement will
        be made
        or caused to be made by the Securities Administrator by wire transfer in
        immediately available funds to the account of the Person entitled thereto
        if
        such Person shall have so notified the Securities Administrator in writing
        at
        least five (5) Business Days prior to the Record Date immediately prior to
        such
        Distribution Date and is the registered owner of Class P Certificates the
        aggregate initial Certificate Principal Balance of which is in excess of
        the
        lesser of (i) $5,000,000 or (ii) two-thirds of the aggregate initial Certificate
        Principal Balance of the Class P Certificates, or otherwise by check mailed
        by
        first class mail to the address of the Person entitled thereto, as such name
        and
        address shall appear on the Certificate Register. Notwithstanding the above,
        the
        final distribution on this Certificate will be made after due notice by the
        Securities Administrator of the pendency of such distribution and only upon
        presentation and surrender of this Certificate at the office or agency appointed
        by the Securities Administrator for that purpose as provided in the
        Agreement.

       

      This
        Certificate is one of a duly authorized issue of Certificates designated
        as an
        Asset Backed Pass-Through Certificate of the Series specified on the face
        hereof
        (herein called the “Certificates”) and representing a Percentage Interest in the
        Class of Certificates specified on the face hereof equal to the denomination
        specified on the face hereof divided by the aggregate Certificate Principal
        Balance of the Class of Certificates specified on the face hereof.

       

      The
        Certificates are limited in right of payment to certain collections and
        recoveries respecting the Mortgage Loans, all as more specifically set forth
        herein and in the Agreement. As provided in the Agreement, withdrawals from
        the
        Collection Accounts and the Distribution Account may be made from time to
        time
        for purposes other than distributions to Certificateholders, such purposes
        including reimbursement of advances made, or certain expenses incurred, with
        respect to the Mortgage Loans.

       

      The
        Agreement permits, with certain exceptions therein provided, the amendment
        thereof and the modification of the rights and obligations of the Depositor,
        the
        Master Servicer, the Trustee, the Securities Administrator, the Servicers
        party
        thereto and the rights of the Certificateholders under the Agreement at any
        time
        by the Depositor, the Master Servicer, the Trustee, the Securities Administrator
        and the Servicers party thereto with the consent of the Holders of Certificates
        entitled to at least 66% of the Voting Rights. 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 herefor 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
        upon
        surrender of this Certificate for registration of transfer at the offices
        or
        agencies appointed by the Securities Administrator as provided in the Agreement,
        duly endorsed by, or accompanied by an assignment in the form below or other
        written instrument of transfer in form satisfactory to the Securities
        Administrator duly executed by, the Holder hereof or such Holder’s attorney duly
        authorized in writing, and thereupon one or more new Certificates of the
        same
        Class in authorized denominations evidencing the same aggregate Percentage
        Interest will be issued to the designated transferee or
        transferees.

       

      No
        transfer of this Certificate shall be made unless the transfer is made pursuant
        to an effective registration statement under the Securities Act of 1933,
        as
        amended (the “1933 Act”), and an effective registration or qualification under
        applicable state securities laws, or is made in a transaction that does not
        require such registration or qualification. In the event that such a transfer
        of
        this Certificate is to be made without registration or qualification, the
        Securities Administrator shall require receipt of (i) if such transfer is
        purportedly being made in reliance upon Rule 144A or Regulation S under the
        1933
        Act, written certifications from the Holder of the Certificate desiring to
        effect the transfer, and from such Holder’s prospective transferee,
        substantially in the forms attached to the Agreement as Exhibit B-1, (ii)
        if
        such transfer is purportedly being made in reliance upon Rule 501(a) under
        the
        1933 Act, written certifications from the Holder of the Certificate desiring
        to
        effect the transfer and from such Holder’s prospective transferee, substantially
        in the form attached to the Agreement as Exhibit B-2 and (iii) in all other
        cases, an Opinion of Counsel satisfactory to it that such transfer may be
        made
        without such registration or qualification (which Opinion of Counsel shall
        not
        be an expense of the Trust Fund or of the Depositor, the Trustee, the Master
        Servicer or the Securities Administrator in their respective capacities as
        such), together with copies of the written certification(s) of the Holder
        of the
        Certificate desiring to effect the transfer and/or such Holder’s prospective
        transferee upon which such Opinion of Counsel is based. None of the Depositor,
        the Trustee or the Securities Administrator is obligated to register or qualify
        the Class of Certificates specified on the face hereof under the 1933 Act
        or any
        other securities law or to take any action not otherwise required under the
        Agreement to permit the transfer of such Certificates without registration
        or
        qualification. Any Holder desiring to effect a transfer of this Certificate
        shall be required to indemnify the Trustee, the Depositor, the Master Servicer
        and the Securities Administrator against any liability that may result if
        the
        transfer is not so exempt or is not made in accordance with such federal
        and
        state laws.

       

      No
        transfer of this Certificate shall be made except in accordance with Section
        6.02(c) of the Agreement.

       

      The
        Certificates are issuable in fully registered form only without coupons in
        Classes and denominations representing Percentage Interests specified in
        the
        Agreement. As provided in the Agreement and subject to certain limitations
        therein set forth, the Certificates are exchangeable for new Certificates
        of the
        same Class in authorized denominations 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 of Certificates,
        but the Securities Administrator may require payment of a sum sufficient
        to
        cover any tax or other governmental charge that may be imposed in connection
        with any transfer or exchange of Certificates.

       

      The
        Depositor, the Master Servicer, the Trustee, the Securities Administrator,
        the
        Servicers and any agent of the Depositor, the Master Servicer, the Trustee,
        the
        Securities Administrator or a Servicer may treat the Person in whose name
        this
        Certificate is registered as the owner hereof for all purposes, and none
        of the
        Depositor, the Master Servicer, the Trustee, the Securities Administrator,
        the
        Servicers nor any such agent shall be affected by notice to the
        contrary.

       

      The
        obligations created by the Agreement and the Trust Fund created thereby shall
        terminate upon payment to the Certificateholders of all amounts held by the
        Securities Administrator and required to be paid to them pursuant to the
        Agreement following the earlier of (i) the final payment or other liquidation
        (or any advance with respect thereto) of the last Mortgage Loan remaining
        in
        REMIC I and (ii) the purchase by the party designated in the Agreement at
        a
        price determined as provided in the Agreement from REMIC I of all the Mortgage
        Loans and all property acquired in respect of such Mortgage Loans. The Agreement
        permits, but does not require, the party designated in the Agreement to purchase
        from REMIC I all the Mortgage Loans and all property acquired in respect
        of any
        Mortgage Loan at a price determined as provided in the Agreement. The exercise
        of such right will effect early retirement of the Certificates; provided,
        however, such right to purchase is subject to the aggregate Scheduled Principal
        Balance of the Mortgage Loans (and properties acquired in respect thereof)
        at
        the time of purchase being less than or equal to 10% of the aggregate principal
        balance of the Mortgage Loans as of the Cut-off Date.

       

      The
        recitals contained herein shall be taken as statements of the Depositor and
        neither the Trustee nor the Securities Administrator assume any responsibility
        for their correctness.

       

      Unless
        the certificate of authentication hereon has been executed by the Securities
        Administrator, by manual signature, this Certificate shall not be entitled
        to
        any benefit under the Agreement or be valid for any purpose.

       

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF, the Securities Administrator has caused this Certificate
        to be
        duly executed.

       

      Dated:

      
        	 	 	 	 	 	 	 	
                WELLS
                  FARGO BANK, NATIONAL ASSOCIATION

                as
                  Securities Administrator

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:

              	 
	 	 	 	 	 	 	 	 	
                Authorized
                  Officer

              
	 	 	 	 	 	 	 	 	 

      

      

      

      

      

      CERTIFICATE
        OF AUTHENTICATION

       

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

       

      
        	 	 	 	 	 	 	 	
                WELLS
                  FARGO BANK, NATIONAL ASSOCIATION

                as
                  Securities Administrator

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:

              	 
	 	 	 	 	 	 	 	 	
                Authorized
                  Officer

              
	 	 	 	 	 	 	 	 	 

      

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      ABBREVIATIONS

       

      The
        following abbreviations, when used in the inscription on the face of this
        instrument, shall be construed as though they were written out in full according
        to applicable laws or regulations:

      
         

        
          	
                  TEN
                    COM -

                	
                  as
                    tenants in common

                	
                  UNIF
                    GIFT MIN ACT -

                	
                        
                       Custodian        
                          

                  (Cust) 
                     (Minor)

                  under
                    Uniform Gifts 

                  to
                    Minors Act

                
	
                  TEN
                    ENT -

                	
                  as
                    tenants by the entireties

                	 	
                  ________________

                  (State)

                
	
                  JT
                    TEN -

                	
                  as
                    joint tenants with right 

                  if
                    survivorship and not as 

                  tenants
                    in common

                	 	 
	 	 	 	 
	
                  Additional
                    abbreviations may also be used though not in the above
                    list.

                

        

         

      

      

      ASSIGNMENT

       

      
        	
                FOR
                  VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s)
                  

              
	
                unto

              	 
	 	 
	 	 

      

      (Please
        print or typewrite name, address including postal zip code, and Taxpayer
        Identification Number of assignee)

       

      a
        Percentage Interest equal to ____% evidenced by the within Asset Backed
        Pass-Through Certificate and hereby authorize(s) the registration of transfer
        of
        such interest to assignee on the Certificate Register of the Trust
        Fund.

       

      I
        (we)
        further direct the Securities Administrator to issue a new Certificate of
        a like
        Percentage Interest and Class to the above named assignee and deliver such
        Certificate to the following address:
        ________________________________________________________________________________________________________________

      
        	 	 	
                .

              

      

      

       

      
        	
                Dated:

              	 
	 	
                Signature
                  by or on behalf of assignor

              
	 	 
	 	 
	 	
                Signature
                  Guaranteed

              

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      DISTRIBUTION
        INSTRUCTIONS

       

      The
        assignee should include the following for purposes of distribution:

       

      
        	
                Distributions
                  shall be made, by wire transfer or otherwise, in immediately available
                  

              
	
                funds
                  to

              	 
	 
	
                for
                  the account of

              	 
	
                account
                  number

              	 	
                or,
                  if mailed by check, to

              
	 
	
                Applicable
                  statements should be mailed to

              	 
	 
	 
	
                This
                  information is provided by

              	 
	
                assignee
                  named above, or

              	 
	
                its
                  agent.

              	 

      

      

       

      

       

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EXHIBIT
        A-6

       

      

      FORM
        OF
        CLASS R CERTIFICATE

       

      THIS
        CERTIFICATE MAY NOT BE TRANSFERRED TO A NON-UNITED STATES
        PERSON.

       

      SOLELY
        FOR U.S. FEDERAL INCOME TAX PURPOSES,
        THIS CERTIFICATE REPRESENTS THE SOLE “RESIDUAL INTEREST” IN EACH “REAL ESTATE
        MORTGAGE INVESTMENT CONDUIT” (“REMIC”), AS THOSE TERMS ARE DEFINED,
        RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF 1986,
        AS
        AMENDED (THE “CODE”).

       

      ANY
        RESALE, TRANSFER OR OTHER DISPOSITION OF THIS CERTIFICATE MAY BE MADE ONLY
        IN
        ACCORDANCE WITH THE PROVISIONS OF SECTION 6.02 OF THE AGREEMENT REFERRED
        TO
        HEREIN.

       

      THIS
        CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES
        ACT OF
        1933, AS AMENDED (THE “1933 ACT”), OR THE SECURITIES LAWS OF ANY STATE AND MAY
        NOT BE RESOLD OR TRANSFERRED UNLESS IT IS REGISTERED PURSUANT TO THE 1933
        ACT
        AND SUCH LAWS OR IS SOLD OR TRANSFERRED IN TRANSACTIONS THAT ARE EXEMPT FROM
        REGISTRATION UNDER THE 1933 ACT AND UNDER APPLICABLE STATE LAW AND IS
        TRANSFERRED IN ACCORDANCE WITH THE PROVISIONS OF SECTION 6.02 OF THE
        AGREEMENT.

       

      NO
        TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT
        ARRANGEMENT SUBJECT TO THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974,
        AS
        AMENDED (“ERISA”), OR SECTION 4975 OF THE CODE WILL BE REGISTERED EXCEPT IN
        COMPLIANCE WITH THE PROCEDURES DESCRIBED HEREIN AND IN ACCORDANCE WITH THE
        PROVISIONS OF THE AGREEMENT REFERRED TO HEREIN.

       

      ANY
        RESALE, TRANSFER OR OTHER DISPOSITION OF THIS CERTIFICATE MAY BE MADE ONLY
        IF
        THE PROPOSED TRANSFEREE PROVIDES (I) AN AFFIDAVIT TO THE SECURITIES
        ADMINISTRATOR THAT (A) SUCH TRANSFEREE IS NOT (1) THE UNITED STATES OR ANY
        POSSESSION THEREOF, ANY STATE OR POLITICAL SUBDIVISION THEREOF, ANY FOREIGN
        GOVERNMENT, ANY INTERNATIONAL ORGANIZATION, OR ANY AGENCY OR INSTRUMENTALITY
        OF
        ANY OF THE FOREGOING, (2) ANY ORGANIZATION (OTHER THAN A COOPERATIVE DESCRIBED
        IN SECTION 521 OF THE CODE) THAT IS EXEMPT FROM THE TAX IMPOSED BY CHAPTER
        1 OF
        THE CODE UNLESS SUCH ORGANIZATION IS SUBJECT TO THE TAX IMPOSED BY SECTION
        511
        OF THE CODE, (3) ANY ORGANIZATION DESCRIBED IN SECTION 1381(a)(2)(C) OF THE
        CODE
        (ANY SUCH PERSON DESCRIBED IN THE FOREGOING CLAUSES (1), (2) OR (3) SHALL
        HEREINAFTER BE REFERRED TO AS A “DISQUALIFIED ORGANIZATION”) OR (4) AN AGENT OF
        A DISQUALIFIED ORGANIZATION AND (B) NO PURPOSE OF SUCH TRANSFER IS TO IMPEDE
        THE
        ASSESSMENT OR COLLECTION OF TAX, AND (II) SUCH TRANSFEREE SATISFIES CERTAIN
        ADDITIONAL CONDITIONS RELATING TO THE FINANCIAL CONDITION OF THE PROPOSED
        TRANSFEREE. NOTWITHSTANDING THE REGISTRATION IN THE CERTIFICATE REGISTER
        OF ANY
        TRANSFER, SALE OR OTHER DISPOSITION OF THIS CERTIFICATE TO A DISQUALIFIED
        ORGANIZATION OR AN AGENT OF A DISQUALIFIED ORGANIZATION, SUCH REGISTRATION
        SHALL
        BE DEEMED TO BE OF NO LEGAL FORCE OR EFFECT WHATSOEVER AND SUCH PERSON SHALL
        NOT
        BE DEEMED TO BE A CERTIFICATEHOLDER FOR ANY PURPOSE HEREUNDER, INCLUDING,
        BUT
        NOT LIMITED TO, THE RECEIPT OF DISTRIBUTIONS ON THIS CERTIFICATE. EACH HOLDER
        OF
        THIS CERTIFICATE BY ACCEPTANCE HEREOF SHALL BE DEEMED TO HAVE CONSENTED TO
        THE
        PROVISIONS OF THIS PARAGRAPH AND THE PROVISIONS OF SECTION 6.02(d) OF THE
        AGREEMENT REFERRED TO HEREIN. ANY PERSON THAT IS A DISQUALIFIED ORGANIZATION
        IS
        PROHIBITED FROM ACQUIRING BENEFICIAL OWNERSHIP OF THIS
        CERTIFICATE.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	
                Series
                  2006-SD2, Class R

              	 	
                Aggregate
                  Percentage Interest of the Class R Certificates as of the Issue
                  Date:
                  100.00%

                 

              
	
                Date
                  of Pooling and Servicing Agreement: May 31, 2006

              	 	
                Master
                  Servicer: Wells Fargo Bank, National Association

                 

              
	
                First
                  Distribution Date: July 25, 2006

              	 	
                Trustee:
                  HSBC Bank USA, National Association

                 

              
	
                Cut-off
                  Date: May 31, 2006

              	 	
                Issue
                  Date: June 26, 2006

                 

              
	
                No
                  __

              	 	 

      

      

      

       

      ACE
        SECURITIES CORP. HOME EQUITY LOAN TRUST, SERIES 2006-SD2

      ASSET
        BACKED PASS-THROUGH CERTIFICATE

       

      evidencing
        a beneficial ownership interest in a Trust Fund (the “Trust Fund”) consisting
        primarily of a pool of conventional one- to four-family, fixed and
        adjustable-rate, first and second lien mortgage loans (the “Mortgage Loans”)
        formed and sold by

       

      ACE
        SECURITIES CORP.

       

      THIS
        CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN ACE SECURITIES
        CORP., THE MASTER SERVICER, THE SECURITIES ADMINISTRATOR, THE SERVICERS,
        THE
        TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE NOR
        THE
        UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR INSTRUMENTALITY
        OF THE
        UNITED STATES.

       

      

      This
        certifies that _______________ is the registered owner of a Percentage Interest
        set forth above in that certain beneficial ownership interest evidenced by
        all
        the Class R Certificates in REMIC II created pursuant to a Pooling and Servicing
        Agreement, dated as specified above (the “Agreement”), among ACE Securities
        Corp. as depositor (hereinafter called the “Depositor”, which term includes any
        successor entity under the Agreement), Wells Fargo Bank, National Association
        as
        master servicer (the “Master Servicer”) and securities administrator (the
“Securities Administrator”), Ocwen Loan Servicing, LLC as a servicer (“Ocwen”),
        Wells Fargo Bank, National Association as a servicer (“Wells Fargo”; each of
        Wells Fargo and Ocwen, a “Servicer” and together, the “Servicers”) and HSBC Bank
        USA, National Association as trustee (the “Trustee”), a summary of certain of
        the pertinent provisions of which is set forth hereafter. Certain of the
        Mortgage Loans are being serviced by Select Portfolio Servicing, Inc. (“SPS,”
together with Ocwen and Wells Fargo, each a “Servicer” and together the
“Servicers”) pursuant to a separate servicing agreement. To the extent not
        defined herein, the capitalized terms used herein have the meanings assigned
        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.

       

      Pursuant
        to the terms of the Agreement, distributions 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 such 25th
        day (a
“Distribution Date”), commencing on the First Distribution Date specified above,
        to the Person in whose name this Certificate is registered on the last Business
        Day of the calendar month immediately preceding the month in which the related
        Distribution Date occurs (the “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 the Holders of Class R Certificates on such Distribution
        Date pursuant to the Agreement.

       

      All
        distributions to the Holder of this Certificate under the Agreement will
        be made
        or caused to be made by the Securities Administrator by wire transfer in
        immediately available funds to the account of the Person entitled thereto
        if
        such Person shall have so notified the Securities Administrator in writing
        at
        least five Business Days prior to the Record Date immediately prior to such
        Distribution Date and is the registered owner of Class R Certificates, or
        otherwise by check mailed by first class mail to the address of the Person
        entitled thereto, as such name and address shall appear on the Certificate
        Register. Notwithstanding the above, the final distribution on this Certificate
        will be made after due notice by the Securities Administrator of the pendency
        of
        such distribution and only upon presentation and surrender of this Certificate
        at the office or agency appointed by the Securities Administrator for that
        purpose as provided in the Agreement.

       

      This
        Certificate is one of a duly authorized issue of Certificates designated
        as
        Asset Backed Pass-Through Certificate of the Series specified on the face
        hereof
        (herein called the “Certificates”) and representing the Percentage Interest in
        the Class of Certificates specified on the face hereof.

       

      The
        Certificates are limited in right of payment to certain collections and
        recoveries respecting the Mortgage Loans, all as more specifically set forth
        herein and in the Agreement. As provided in the Agreement, withdrawals from
        the
        Collection Accounts and the Distribution Account may be made from time to
        time
        for purposes other than distributions to Certificateholders, such purposes
        including reimbursement of advances made, or certain expenses incurred, with
        respect to the Mortgage Loans.

       

      The
        Agreement permits, with certain exceptions therein provided, the amendment
        thereof and the modification of the rights and obligations of the Depositor,
        the
        Master Servicer, the Trustee, the Securities Administrator, the Servicers
        party
        thereto and the rights of the Certificateholders under the Agreement at any
        time
        by the Depositor, the Master Servicer, the Trustee, the Securities Administrator
        and the Servicers party thereto with the consent of the Holders of Certificates
        entitled to at least 66% of the Voting Rights. 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 herefor 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
        upon
        surrender of this Certificate for registration of transfer at the offices or
        agencies appointed by the Securities Administrator as provided in the Agreement,
        duly endorsed by, or accompanied by an assignment in the form below or other
        written instrument of transfer in form satisfactory to the Securities
        Administrator duly executed by, the Holder hereof or such Holder’s attorney duly
        authorized in writing, and thereupon one or more new Certificates of the
        same
        Class in authorized denominations evidencing the same aggregate Percentage
        Interest will be issued to the designated transferee or
        transferees.

       

      The
        Certificates are issuable in fully registered form only without coupons in
        Classes and denominations representing Percentage Interests 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 evidencing the same aggregate Percentage
        Interest, as requested by the Holder surrendering the same.

       

      No
        transfer of this Certificate shall be made unless the transfer is made pursuant
        to an effective registration statement under the 1933 Act, and an effective
        registration or qualification under applicable state securities laws, or
        is made
        in a transaction that does not require such registration or qualification.
        In
        the event that such a transfer of this Certificate is to be made without
        registration or qualification, the Securities Administrator shall require
        receipt of (i) if such transfer is purportedly being made in reliance upon
        Rule
        144A under the 1933 Act, written certifications from the Holder of the
        Certificate desiring to effect the transfer, and from such Holder’s prospective
        transferee, substantially in the forms attached to the Agreement as Exhibit
        B-1,
        and (ii) in all other cases, an Opinion of Counsel satisfactory to it that
        such
        transfer may be made without such registration or qualification (which Opinion
        of Counsel shall not be an expense of the Trust Fund or of the Depositor,
        the
        Trustee, the Master Servicer or the Securities Administrator in their respective
        capacities as such), together with copies of the written certification(s)
        of the
        Holder of the Certificate desiring to effect the transfer and/or such Holder’s
        prospective transferee upon which such Opinion of Counsel is based. None
        of the
        Depositor, the Trustee or the Securities Administrator is obligated to register
        or qualify the Class of Certificates specified on the face hereof under the
        1933
        Act or any other securities law or to take any action not otherwise required
        under the Agreement to permit the transfer of such Certificates without
        registration or qualification. Any Holder desiring to effect a transfer of
        this
        Certificate shall be required to indemnify the Trustee, the Depositor, the
        Master Servicer and the Securities Administrator against any liability that
        may
        result if the transfer is not so exempt or is not made in accordance with
        such
        federal and state laws.

       

      No
        transfer of this Certificate shall be made except in accordance with Section
        6.02 of the Agreement.

       

      Prior
        to
        registration of any transfer, sale or other disposition of this Certificate,
        the
        proposed transferee shall provide to the Securities Administrator (i) an
        affidavit to the effect that such transferee is any Person other than a
        Disqualified Organization or the agent (including a broker, nominee or
        middleman) of a Disqualified Organization, and (ii) a certificate that
        acknowledges that (A) the Class R Certificates have been designated as
        representing the beneficial ownership of the residual interests in each of
        REMIC
        I and REMIC II, (B) it will include in its income a pro
        rata
        share of
        the net income of the Trust Fund and that such income may be an “excess
        inclusion,” as defined in the Code, that, with certain exceptions, cannot be
        offset by other losses or benefits from any tax exemption, and (C) it expects
        to
        have the financial means to satisfy all of its tax obligations including
        those
        relating to holding the Class R Certificates. Notwithstanding the registration
        in the Certificate Register of any transfer, sale or other disposition of
        this
        Certificate to a Disqualified Organization or an agent (including a broker,
        nominee or middleman) of a Disqualified Organization, such registration shall
        be
        deemed to be of no legal force or effect whatsoever and such Person shall
        not be
        deemed to be a Certificateholder for any purpose, including, but not limited
        to,
        the receipt of distributions in respect of this Certificate.

       

      The
        Holder of this Certificate, by its acceptance hereof, shall be deemed to
        have
        consented to the provisions of Section 6.02 of the Agreement and to any
        amendment of the Agreement deemed necessary by counsel of the Depositor to
        ensure that the transfer of this Certificate to any Person other than a
        Permitted Transferee or any other Person will not cause any portion of the
        Trust
        Fund to cease to qualify as a REMIC or cause the imposition of a tax upon
        any
        REMIC.

       

      No
        service charge will be made for any such registration of transfer or exchange
        of
        Certificates, but the Securities Administrator may require payment of a sum
        sufficient to cover any tax or other governmental charge that may be imposed
        in
        connection with any transfer or exchange of Certificates.

       

      The
        Depositor, the Master Servicer, the Trustee, the Securities Administrator,
        the
        Servicers and any agent of the Depositor, the Master Servicer, the Trustee,
        the
        Securities Administrator or a Servicer may treat the Person in whose name
        this
        Certificate is registered as the owner hereof for all purposes, and none
        of the
        Depositor, the Master Servicer, the Trustee, the Securities Administrator,
        the
        Servicers nor any such agent shall be affected by notice to the
        contrary.

       

      The
        obligations created by the Agreement and the Trust Fund created thereby shall
        terminate upon payment to the Certificateholders of all amounts held by the
        Securities Administrator and required to be paid to them pursuant to the
        Agreement following the earlier of (i) the final payment or other liquidation
        (or any advance with respect thereto) of the last Mortgage Loan remaining
        in
        REMIC I and (ii) the purchase by the party designated in the Agreement at
        a
        price determined as provided in the Agreement from REMIC I of all the Mortgage
        Loans and all property acquired in respect of such Mortgage Loans. The Agreement
        permits, but does not require, the party designated in the Agreement to purchase
        from REMIC I all the Mortgage Loans and all property acquired in respect
        of any
        Mortgage Loan at a price determined as provided in the Agreement. The exercise
        of such right will effect early retirement of the Certificates; provided,
        however, such right to purchase is subject to the aggregate Scheduled Principal
        Balance of the Mortgage Loans (and properties acquired in respect thereof)
        at
        the time of purchase being less than or equal to 10% of the aggregate Scheduled
        Principal Balance of the Mortgage Loans as of the Cut-off Date.

       

      The
        recitals contained herein shall be taken as statements of the Depositor and
        neither the Trustee nor the Securities Administrator assumes any responsibility
        for their correctness.

       

      Unless
        the certificate of authentication hereon has been executed by the Securities
        Administrator, by manual signature, this Certificate shall not be entitled
        to
        any benefit under the Agreement or be valid for any purpose.

       

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF, the Securities Administrator has caused this Certificate
        to be
        duly executed.

       

      Dated:

      
        	 	 	 	 	 	 	 	
                WELLS
                  FARGO BANK, NATIONAL ASSOCIATION

                as
                  Securities Administrator

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:

              	 
	 	 	 	 	 	 	 	 	
                Authorized
                  Officer

              
	 	 	 	 	 	 	 	 	 

      

      

      

      

      CERTIFICATE
        OF AUTHENTICATION

       

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

       

      
        	 	 	 	 	 	 	 	
                WELLS
                  FARGO BANK, NATIONAL ASSOCIATION

                as
                  Securities Administrator

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:

              	 
	 	 	 	 	 	 	 	 	
                Authorized
                  Signatory

              
	 	 	 	 	 	 	 	 	 

      

      

       

      ABBREVIATIONS

       

      The
        following abbreviations, when used in the inscription on the face of this
        instrument, shall be construed as though they were written out in full according
        to applicable laws or regulations:

      
         

        
          	
                  TEN
                    COM -

                	
                  as
                    tenants in common

                	
                  UNIF
                    GIFT MIN ACT -

                	
                        
                       Custodian        
                          

                  (Cust) 
                     (Minor)

                  under
                    Uniform Gifts 

                  to
                    Minors Act

                
	
                  TEN
                    ENT -

                	
                  as
                    tenants by the entireties

                	 	
                  ________________

                  (State)

                
	
                  JT
                    TEN -

                	
                  as
                    joint tenants with right 

                  if
                    survivorship and not as 

                  tenants
                    in common

                	 	 
	 	 	 	 
	
                  Additional
                    abbreviations may also be used though not in the above
                    list.

                

        

      

      

      

      ASSIGNMENT

       

      
        	
                FOR
                  VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s)
                  

              
	
                unto

              	 
	 	 
	 	 

      

      (Please
        print or typewrite name, address including postal zip code, and Taxpayer
        Identification Number of assignee) 

       

      a
        Percentage Interest equal to ____% evidenced by the within Asset Backed
        Pass-Through Certificate and hereby authorize(s) the registration of transfer
        of
        such interest to assignee on the Certificate Register of the Trust
        Fund.

       

      I
        (we)
        further direct the Securities Administrator to issue a new Certificate of
        a like
        Percentage Interest and Class to the above named assignee and deliver such
        Certificate to the following address: 

      
        	 	 	
                .

              

      

      

       

      
        	
                Dated:

              	 
	 	
                Signature
                  by or on behalf of assignor

              
	 	 
	 	 
	 	
                Signature
                  Guaranteed

              

      

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      DISTRIBUTION
        INSTRUCTIONS

       

      The
        assignee should include the following for purposes of distribution:

       

      
        	
                Distributions
                  shall be made, by wire transfer or otherwise, in immediately available
                  

              
	
                funds
                  to

              	 
	 
	
                for
                  the account of

              	 
	
                account
                  number

              	 	
                or,
                  if mailed by check, to

              
	 
	
                Applicable
                  statements should be mailed to

              	 
	 
	 
	
                This
                  information is provided by

              	 
	
                assignee
                  named above, or

              	 
	
                its
                  agent.

              	 

      

      

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EXHIBIT
        B-1

      FORM
        OF
        TRANSFEROR REPRESENTATION LETTER

       

      [Date]

       

      Wells
        Fargo Bank, National Association

      Sixth
        Street and Marquette Avenue

      Minneapolis,
        Minnesota 55479

      Attention:
        Corporate Trust ACE 2006-SD2

       

      
        	
                Re:

              	
                ACE
                  Securities Corp. Home Equity Loan Trust, Series 2006-SD2

                Asset
                  Backed Pass-Through Certificates 

                Class
                  CE-1, Class CE-2, Class P and Class R
                  Certificates

              

      

      

       

      Ladies
        and Gentlemen:

       

      In
        connection with the transfer by ______________________ (the “Transferor”) to
        ___________________ (the “Transferee”) of the captioned asset-backed
        pass-through certificates (the “Certificates”), the Transferor hereby certifies
        as follows:

       

      Neither
        the Transferor nor anyone acting on its behalf has (a) offered, pledged,
        sold,
        disposed of or otherwise transferred any Certificate, any interest in any
        Certificate or any other similar security to any person in any manner, (b)
        has
        solicited any offer to buy or to accept a pledge, disposition or other transfer
        of any Certificate, any interest in any Certificate or any other similar
        security from any person in any manner, (c) has otherwise approached or
        negotiated with respect to any Certificate, any interest in any Certificate
        or
        any other similar security with any person in any manner, (d) has made any
        general solicitation by means of general advertising or in any other manner,
        (e)
        has taken any other action, that (in the case of each of subclauses (a) through
        (e) above) would constitute a distribution of the Certificates under the
        Securities Act of 1933, as amended (the “1933 Act”), or would render the
        disposition of any Certificate a violation of Section 5 of the 1933 Act or
        any
        state securities law or would require registration or qualification pursuant
        thereto. The Transferor will not act, nor has it authorized or will it authorize
        any person to act, in any manner set forth in the foregoing sentence with
        respect to any Certificate. The Transferor will not sell or otherwise transfer
        any of the Certificates, except in compliance with the provisions of that
        certain Pooling and Servicing Agreement, dated as of May 31, 2006, among
        ACE
        Securities Corp. as Depositor, Ocwen Loan Servicing, LLC as a Servicer, Wells
        Fargo Bank, National Association as a Servicer, Wells Fargo Bank, National
        Association as Master Servicer and Securities Administrator and HSBC Bank
        USA,
        National Association as Trustee (the “Pooling and Servicing Agreement”),
        pursuant to which Pooling and Servicing Agreement the Certificates were
        issued.

       

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Capitalized
        terms used but not defined herein shall have the meanings assigned thereto
        in
        the Pooling and Servicing Agreement.

       

      
        	 	 	 	 	 	 	 	
                Very
                  truly yours,

              
	 	 	 	 	 	 	 	
                [Transferor]

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:

              	 
	 	 	 	 	 	 	 	
                Name:

              	 
	 	 	 	 	 	 	 	
                Title:

              	 

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      FORM
        OF
        TRANSFEREE REPRESENTATION LETTER

       

      [Date]

       

      Wells
        Fargo Bank, National Association

      Sixth
        Street and Marquette Avenue

      Minneapolis,
        Minnesota 55479

      Attention:
        Corporate Trust ACE 2006-SD2

       

      
        	
                Re:

              	
                ACE
                  Securities Corp. Home Equity Loan Trust, Series 2006-SD2 

                Asset
                  Backed Pass-Through Certificates 

                Class
                  CE-1, Class CE-2, Class P and Class R
                  Certificates

              

      

      

      Ladies
        and Gentlemen:

       

      In
        connection with the purchase from ______________________________ (the
“Transferor”) on the date hereof of the captioned trust certificates (the
“Certificates”), (the “Transferee”) hereby certifies as follows:

       

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

       

      2. The
        Transferee has been furnished with all information regarding (a) the
        Certificates and distributions thereon, (b) the nature, performance and
        servicing of the Mortgage Loans, (c) the Pooling and Servicing Agreement
        referred to below, and (d) any credit enhancement mechanism associated with
        the
        Certificates, that it has requested.

       

      3. The
        Transferee: (a) is not an employee benefit plan or other plan subject to
        the
        prohibited transaction provisions of the Employee Retirement Income Security
        Act
        of 1974, as amended (“ERISA”), or Section 4975 of the Internal Revenue Code of
        1986, as amended (the “Code”) (each, a “Plan”), or any other person (including
        an investment manager, a named fiduciary or a trustee of any Plan) acting,
        directly or indirectly, on behalf of or purchasing any Certificate with “plan
        assets” of any Plan within the meaning of the Department of Labor (“DOL”)
        regulation at 29 C.F.R. § 2510.3-101 or (b) has provided the Securities
        Administrator with an Opinion of Counsel on which the Trustee, the Depositor,
        the Master Servicer, the Securities Administrator and the Servicers may rely,
        acceptable to and in form and substance satisfactory to the Securities
        Administrator to the effect that the purchase of Certificates is permissible
        under applicable law, will not constitute or result in any non-exempt prohibited
        transaction under ERISA or Section 4975 of the Code and will not subject
        the
        Trust Fund, the Trustee, the Depositor, the Master Servicer, the Securities
        Administrator or the Servicers to any obligation or liability (including
        obligations or liabilities under ERISA or Section 4975 of the Code) in addition
        to those undertaken in the Pooling and Servicing Agreement.

       

      In
        addition, the Transferee hereby certifies, represents and warrants to, and
        covenants with, the Depositor, the Trustee, the Securities Administrator,
        the
        Master Servicer and the Servicers that the Transferee will not transfer such
        Certificates to any Plan or person unless such Plan or person meets the
        requirements set forth in paragraph 3 above.

       

      All
        capitalized terms used but not otherwise defined herein have the respective
        meanings assigned thereto in the Pooling and Servicing Agreement, dated as
        of
        May 31, 2006, among ACE Securities Corp. as Depositor, Wells Fargo Bank,
        National Association as Master Servicer and Securities Administrator, Ocwen
        Loan
        Servicing, LLC as a Servicer, Wells Fargo Bank, National Association as a
        Servicer and HSBC Bank USA, National Association as Trustee, pursuant to
        which
        the Certificates were issued.

       

      
        	 	 	 	 	 	 	 	
                [TRANSFEREE]

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:

              	 
	 	 	 	 	 	 	 	
                Name:

              	 
	 	 	 	 	 	 	 	
                Title:

              	 

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      ANNEX
        A TO EXHIBIT B-1 

       

      FORM
        OF
        REGULATION S TRANSFER CERTIFICATE

       

      [Date]

       

      

       

      Wells
        Fargo Bank, National Association

      Sixth
        Street and Marquette Avenue

      Minneapolis,
        Minnesota 55479

      Attention:
        Corporate Trust ACE 2006-SD2

       

      
        	
                Re:

              	
                ACE
                  Securities Corp. Home Equity Loan Trust, Series 2006-SD2 Asset
                  Backed
                  Pass-Through Certificates, Class CE-1, Class CE-2 and Class P
                  Certificates     

              

      

       

      Ladies
        and Gentlemen:

       

      Reference
        is hereby made to the Pooling and Servicing Agreement (the “Agreement”), dated
        as of May 31, 2006, among ACE Securities Corp. as Depositor, Ocwen Loan
        Servicing, LLC as a servicer, Wells Fargo Bank, National Association as a
        servicer, Wells Fargo Bank, National Association as Master Servicer and
        Securities Administrator and HSBC Bank USA, National Association as Trustee.
        Capitalized terms used herein but not defined herein shall have the meanings
        assigned thereto in the Agreement.

       

      This
        letter relates to U.S. $[__________] Certificate Principal Balance of Class
        [CE-1][CE-2][P] Certificates (the “Certificates”) which are held in the name of
        [name of transferor] (the “Transferor”) to effect the transfer of the
        Certificates to a person who wishes to take delivery thereof in the form
        of an
        equivalent beneficial interest [name of transferee] (the
“Transferee”).

       

      In
        connection with such request, the Transferor hereby certifies that such transfer
        has been effected in accordance with the transfer restrictions set forth
        in the
        Agreement relating to the Certificates and that the following additional
        requirements (if applicable) were satisfied:

       

      (a) the
        offer
        of the Certificates was not made to a person in the United States;

       

      (b) at
        the
        time the buy order was originated, the Transferee was outside the United
        States
        or the Transferor and any person acting on its behalf reasonably believed
        that
        the Transferee was outside the United States;

       

      (c) no
        directed selling efforts were made in contravention of the requirements of
        Rule
        903(b) or 904(b) of Regulation S, as applicable;

       

      (d) the
        transfer or exchange is not part of a plan or scheme to evade the registration
        requirements of the Securities Act;

       

      (e) the
        Transferee is not a U.S. Person, as defined in Regulation S under the Securities
        Act;

       

      (f) the
        transfer was made in accordance with the applicable provisions of Rule 903(b)(2)
        or (3) or Rule 904(b)(1), as the case may be; and

       

      (g) the
        Transferee understands that the Certificates have not been and will not be
        registered under the Securities Act, that any offers, sales or deliveries
        of the
        Certificates purchased by the Transferee in the United States or to U.S.
        persons
        prior to the date that is forty (40) days after the later of (i) the
        commencement of the offering of the Certificates and (ii) the Closing Date,
        may
        constitute a violation of United States law, and that (x) distributions of
        principal and interest and (y) the exchange of beneficial interests in a
        Temporary Regulation S Global Certificate for beneficial interests in the
        related Permanent Regulation S Global Certificate, in each case, will be
        made in
        respect of such Certificates only following the delivery by the Holder of
        a
        certification of non-U.S. beneficial ownership, at the times and in the manner
        set forth in the Agreement.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      ANNEX
        1 TO EXHIBIT B-1

       

      QUALIFIED
        INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

       

      [For
        Transferees Other Than Registered Investment Companies]

       

      The
        undersigned hereby certifies as follows to [name of Transferor] (the
“Transferor”) and Wells Fargo Bank, National Association, as Securities
        Administrator, with respect to the asset backed pass-through certificates
        (the
“Certificates”) described in the Transferee Certificate to which this
        certification relates and to which this certification is an Annex:

       

      1. As
        indicated below, the undersigned is the President, Chief Financial Officer,
        Senior Vice President or other executive officer of the entity purchasing
        the
        Certificates (the “Transferee”).

       

      2. In
        connection with purchases by the Transferee, the Transferee is a “qualified
        institutional buyer” as that term is defined in Rule 144A under the Securities
        Act of 1933 (“Rule 144A”) because (i) the Transferee owned and/or invested on a
        discretionary basis $________________1 
        in
        securities (except for the excluded securities referred to below) as of the
        end
        of the Transferee’s most recent fiscal year (such amount being calculated in
        accordance with Rule 144A) and (ii) the Transferee satisfies the criteria
        in the
        category marked below.

       

      
        	
                ___

              	
                Corporation,
                  etc.
                  The Transferee is a corporation (other than a bank, savings and
                  loan
                  association or similar institution), Massachusetts or similar business
                  trust, partnership, or any organization described in Section 501(c)(3)
                  of
                  the Internal Revenue Code of 1986.

                 

              
	
                ___

              	
                Bank.
                  The Transferee (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 Transferee (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 Transferee is a dealer registered pursuant to Section 15 of
                  the
                  Securities Exchange Act of 1934.

                 

              
	
                ___

              	
                Insurance
                  Company.
                  The Transferee 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 Transferee 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 Transferee is an employee benefit plan within the meaning of
                  Title I
                  of the Employee Retirement Income Security Act of 1974, as
                  amended.

                 

              
	
                ___

              	
                Investment
                  Advisor
                  The Transferee is an investment advisor registered under the Investment
                  Advisers Act of 1940.

              

      

       

      3. The
        term
“securities”
as
        used
        herein does
        not include
        (i)
        securities of issuers that are affiliated with the Transferee, (ii) securities
        that are part of an unsold allotment to or subscription by the Transferee,
        if
        the Transferee 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 Transferee, the Transferee used the cost
        of such
        securities to the Transferee and did not include any of the securities referred
        to in the preceding paragraph. Further, in determining such aggregate amount,
        the Transferee may have included securities owned by subsidiaries of the
        Transferee, but only if such subsidiaries are consolidated with the Transferee
        in its financial statements prepared in accordance with generally accepted
        accounting principles and if the investments of such subsidiaries are managed
        under the Transferee’s direction. However, such securities were not included if
        the Transferee is a majority-owned, consolidated subsidiary of another
        enterprise and the Transferee is not itself a reporting company under the
        Securities Exchange Act of 1934.

       

      5. The
        Transferee acknowledges that it is familiar with Rule 144A and understands
        that
        the Transferor 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 Transferee may be in reliance on Rule 144A.

       

      
        	 	
                ___

              	
                ___

              	 	
                Will
                  the Transferee be purchasing the Certificates

              
	 	
                Yes

              	
                No

              	 	
                only
                  for the Transferee’s own account?

              

      

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

       

      7. The
        Transferee 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 Transferee’s purchase of the Certificates will constitute a
        reaffirmation of this certification as of the date of such purchase. In
        addition, if the Transferee is a bank or savings and loan as provided above,
        the
        Transferee agrees that it will furnish to such parties updated annual financial
        statements promptly after they become available.

       

      Dated:

      
        	 	 	 	 	 	 	 	
                Print
                  Name of Transferee

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:

              	 
	 	 	 	 	 	 	 	
                Name:

              	 
	 	 	 	 	 	 	 	
                Title:

              	 

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      ANNEX
        2 TO EXHIBIT B-1

       

      QUALIFIED
        INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

       

      [For
        Transferees That Are Registered Investment Companies]

       

      The
        undersigned hereby certifies as follows to [name of Transferor] (the
“Transferor”) and Wells Fargo Bank, National Association, as Securities
        Administrator, with respect to the asset backed pass-through certificates
        (the
“Certificates”) described in the Transferee Certificate to which this
        certification relates and to which this certification is an Annex:

       

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

       

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

       

      
        	
                ___

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

                 

              
	
                ___

              	
                The
                  Transferee 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 Transferee’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
        Transferee or are part of the Transferee’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 agreements, (vi) securities owned but subject to a
        repurchase agreement and (vii) currency, interest rate and commodity
        swaps.

       

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

       

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

       

      Dated:

      
        	 	 	 	 	 	 	 	
                Print
                  Name of Transferee or Advisor

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:

              	 
	 	 	 	 	 	 	 	
                Name:

              	 
	 	 	 	 	 	 	 	
                Title:

              	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                IF
                  AN ADVISER:

              
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                Print
                  Name of Transferee

              

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      FORM
        OF
        TRANSFEREE REPRESENTATION LETTER

      

      The
        undersigned hereby certifies on behalf of the purchaser named below (the
        “Purchaser”) as follows:

       

      1. I
        am an
        executive officer of the Purchaser.

       

      2. The
        Purchaser is a “qualified institutional buyer”, as defined in Rule 144A, (“Rule
        144A”) under the Securities Act of 1933, as amended.

       

      3. As
        of the
        date specified below (which is not earlier than the last day of the Purchaser’s
        most recent fiscal year), the amount of “securities”, computed for purposes of
        Rule 144A, owned and invested on a discretionary basis by the Purchaser was
        in
        excess of $100,000,000.

       

      
        	
                Name
                  of Purchaser 

              	 
	
                By:
                  (Signature) 

              	 
	
                Name
                  of Signatory 

              	 
	
                Title
                  

              	 
	
                Date
                  of this certificate 

              	 
	
                Date
                  of information provided in paragraph 3 

              	 

      

      

      

      

        

        
          1 Transferee
            must own and/or invest on a discretionary basis at least $100,000,000
            in
            securities unless Transferee is a dealer, and, in that case, Transferee
            must own
            and/or invest on a discretionary basis at least $10,000,000 in
            securities.

        

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EXHIBIT
        B-2

       

      FORM
        OF
        TRANSFEROR REPRESENTATION LETTER

       

      ____________,
        20__

      

      Wells
        Fargo Bank, National Association

      Sixth
        Street and Marquette Avenue

      Minneapolis,
        Minnesota 55479

      Attention:
        Corporate Trust ACE 2006-SD2

       

      
        	
                Re:

              	
                ACE
                  Securities Corp. Home Equity Loan Trust, Series 2006-SD2 

                Asset
                  Backed Pass-Through Certificates, 

                Class
                  CE-1, Class CE-2, Class P and Class R
                  Certificates

              

      

      

       

      Ladies
        and Gentlemen:

       

      In
        connection with the transfer by ________________ (the “Transferor”) to
        __________________________ (the “Transferee”) of the captioned asset-backed
        pass-through certificates (the “Certificates”), the Transferor hereby certifies
        as follows:

       

      Neither
        the Seller nor anyone acting on its behalf has (a) offered, pledged, sold,
        disposed of or otherwise transferred any Certificate, any interest in any
        Certificate or any other similar security to any person in any manner, (b)
        has
        solicited any offer to buy or to accept a pledge, disposition or other transfer
        of any Certificate, any interest in any Certificate or any other similar
        security from any person in any manner, (c) has otherwise approached or
        negotiated with respect to any Certificate, any interest in any Certificate
        or
        any other similar security with any person in any manner, (d) has made any
        general solicitation by means of general advertising or in any other manner,
        or
        (e) has taken any other action, that (as to any of (a) through (e) above)
        would
        constitute a distribution of the Certificates under the Securities Act of
        1933
        (the “Act’), that would render the disposition of any Certificate a violation of
        Section 5 of the Act or any state securities law, or that would require
        registration or qualification pursuant thereto. The Seller will not act,
        in any
        manner set forth in the foregoing sentence with respect to any Certificate.
        The
        Seller has not and will not sell or otherwise transfer any of the Certificates,
        except in compliance with the provisions of that certain Pooling and Servicing
        Agreement, dated as of May 31, 2006, among ACE Securities Corp. as Depositor,
        Ocwen Loan Servicing, LLC as a servicer, Wells Fargo Bank, National Association
        as a servicer, Wells Fargo Bank, National Association as Master Servicer
        and
        Securities Administrator and HSBC Bank USA, National Association as Trustee
        (the
“Pooling and Servicing Agreement”), pursuant to which Pooling and Servicing
        Agreement the Certificates were issued.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

       

      
        	 	 	 	 	 	 	 	
                Very
                  truly yours,

              
	 	 	 	 	 	 	 	
                (Transferor)

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:

              	 
	 	 	 	 	 	 	 	
                Name:

              	 
	 	 	 	 	 	 	 	
                Title:

              	 

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      FORM
        OF
        TRANSFEREE REPRESENTATION LETTER

       

      

      _______________,
        20__

       

      Wells
        Fargo Bank, National Association

      Sixth
        Street and Marquette Avenue

      Minneapolis,
        Minnesota 55479

      Attention:
        Corporate Trust ACE 2006-SD2

       

      
        	
                Re:

              	
                ACE
                  Securities Corp. Home Equity Loan Trust, Series 2006-SD2 

                Asset
                  Backed Pass-Through Certificates, 

                Class
                  CE-1, Class CE-2, Class P and Class R
                  Certificates

              

      

      

       

      Ladies
        and Gentlemen:

       

      In
        connection with the transfer by ______________________ (the “Transferor”) to
        __________________________ (the “Transferee”) of the captioned mortgage
        pass-through certificates (the “Certificates”), the Transferee hereby certifies
        as follows:

       

      1. The
        Transferee understands that (a) the Certificates have not been and will not
        be
        registered or qualified under the Securities Act of 1933, as amended (the
“Act”)
        or any state securities law, (b) the Depositor is not required to so register
        or
        qualify the Certificates, (c) the Certificates may be resold only if registered
        and qualified pursuant to the provisions of the Act or any state securities
        law,
        or if an exemption from such registration and qualification is available,
        (d)
        the Pooling and Servicing Agreement contains restrictions regarding the transfer
        of the Certificates and (e) the Certificates will bear a legend to the foregoing
        effect.

       

      2. The
        Transferee is acquiring the Certificates for its own account for investment
        only
        and not with a view to or for sale in connection with any distribution thereof
        in any manner that would violate the Act or any applicable state securities
        laws.

       

      3. The
        Transferee is (a) a substantial, sophisticated institutional investor having
        such knowledge and experience in financial and business matters, and, in
        particular, in such matters related to securities similar to the Certificates,
        such that it is capable of evaluating the merits and risks of investment
        in the
        Certificates, (b) able to bear the economic risks of such an investment and
        (c)
        an “accredited investor” within the meaning of Rule 501(a) promulgated pursuant
        to the Act.

       

      4. The
        Transferee has been furnished with, and has had an opportunity to review
        (a) a
        copy of the Pooling and Servicing Agreement and (b) such other information
        concerning the Certificates, the Mortgage Loans and the Depositor as has
        been
        requested by the Transferee from the Depositor or the Transferor and is relevant
        to the Transferee’s decision to purchase the Certificates. The Transferee has
        had any questions arising from such review answered by the Depositor or the
        Transferor to the satisfaction of the Transferee.

       

      5. The
        Transferee has not and will not nor has it authorized or will it authorize
        any
        person to (a) offer, pledge, sell, dispose of or otherwise transfer any
        Certificate, any interest in any Certificate or any other similar security
        to
        any person in any manner, (b) solicit any offer to buy or to accept a pledge,
        disposition of other transfer of any Certificate, any interest in any
        Certificate or any other similar security from any person in any manner,
        (c)
        otherwise approach or negotiate with respect to any Certificate, any interest
        in
        any Certificate or any other similar security with any person in any manner,
        (d)
        make any general solicitation by means of general advertising or in any other
        manner or (e) take any other action, that (as to any of (a) through (e) above)
        would constitute a distribution of any Certificate under the Act, that would
        render the disposition of any Certificate a violation of Section 5 of the
        Act or
        any state securities law, or that would require registration or qualification
        pursuant thereto. The Transferee will not sell or otherwise transfer any
        of the
        Certificates, except in compliance with the provisions of the Pooling and
        Servicing Agreement.

       

      6. The
        Transferee: (a) is not an employee benefit plan or other plan subject to
        the
        prohibited transaction provisions of the Employee Retirement Income Security
        Act
        of 1974, as amended (“ERISA”), or Section 4975 of the Internal Revenue Code of
        1986, as amended (the “Code”) (each, a “Plan”), or any other person (including
        an investment manager, a named fiduciary or a trustee of any Plan) acting,
        directly or indirectly, on behalf of or purchasing any Certificate with “plan
        assets” of any Plan within the meaning of the Department of Labor (“DOL”)
        regulation at 29 C.F.R. § 2510.3-101 or (b) has provided the Securities
        Administrator with an Opinion of Counsel on which the Depositor, the Master
        Servicer, the Securities Administrator, the Trustee and the Servicers may
        rely,
        acceptable to and in form and substance satisfactory to the Securities
        Administrator to the effect that the purchase of Certificates is permissible
        under applicable law, will not constitute or result in any non-exempt prohibited
        transaction under ERISA or Section 4975 of the Code and will not subject
        the
        Trust Fund, the Trustee, the Master Servicer, the Securities Administrator,
        the
        Depositor or the Servicers to any obligation or liability (including obligations
        or liabilities under ERISA or Section 4975 of the Code) in addition to those
        undertaken in the Pooling and Servicing Agreement.

       

      In
        addition, the Transferee hereby certifies, represents and warrants to, and
        covenants with, the Depositor, the Trustee, the Securities Administrator,
        the
        Master Servicer and the Servicers that the Transferee will not transfer such
        Certificates to any Plan or person unless such Plan or person meets the
        requirements set forth in paragraph 6 above.

       

      All
        capitalized terms used but not otherwise defined herein have the respective
        meanings assigned thereto in the Pooling and Servicing Agreement, dated as
        of
        May 31, 2006, among ACE Securities Corp. as Depositor, Wells Fargo Bank,
        National Association as Master Servicer and Securities Administrator, Ocwen
        Loan
        Servicing, LLC as a servicer, Wells Fargo Bank, National Association as a
        servicer and HSBC Bank USA, National Association as Trustee, pursuant to
        which
        the Certificates were issued.

       

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
        	 	 	 	 	 	 	 	
                Very
                  truly yours,

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:

              	 
	 	 	 	 	 	 	 	
                Name:

              	 
	 	 	 	 	 	 	 	
                Title:

              	 
	 	 	 	 	 	 	 	 	 

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EXHIBIT
        B-3

       

      FORM
        OF
        TRANSFER AFFIDAVIT AND AGREEMENT

       

      
        	
                STATE
                  OF NEW YORK

              	
                )

              	 
	 	
                )

              	
                ss.:

              
	
                COUNTY
                  OF NEW YORK

              	
                )

              	 

      

      

      ___________________________
        being duly sworn, deposes, represents and warrants as follows:

       

      
        	
                1.

              	
                I
                  am a _____________________ of _______________________________ (the
                  “Owner”) a corporation duly organized and existing under the laws of
                  _________________________, the record owner of ACE Securities Corp.
                  Home
                  Equity Loan Trust, Series 2006-SD2 Asset Backed Pass-Through Certificates,
                  Class R Certificates (the “Class R Certificates”), on behalf of whom I
                  make this affidavit and agreement. Capitalized terms used but not
                  defined
                  herein have the respective meanings assigned thereto in the Pooling
                  and
                  Servicing Agreement pursuant to which the Class R Certificates
                  were
                  issued.

                 

              
	
                2.

              	
                The
                  Owner (i) is and will be a “Permitted Transferee” as of
                  ____________________, ____ and (ii) is acquiring the Class R Certificates
                  for its own account or for the account of another Owner from which
                  it has
                  received an affidavit in substantially the same form as this affidavit.
                  A
                  “Permitted Transferee” is any person other than a “disqualified
                  organization” or a possession of the United States. For this purpose, a
                  “disqualified organization” means the United States, any state or
                  political subdivision thereof, any agency or instrumentality of
                  any of the
                  foregoing (other than an instrumentality all of the activities
                  of which
                  are subject to tax and, except for the Federal Home Loan Mortgage
                  Corporation, a majority of whose board of directors is not selected
                  by any
                  such governmental entity) or any foreign government, international
                  organization or any agency or instrumentality of such foreign government
                  or organization, any real electric or telephone cooperative, or
                  any
                  organization (other than certain farmers’ cooperatives) that is generally
                  exempt from federal income tax unless such organization is subject
                  to the
                  tax on unrelated business taxable income.

                 

              
	
                3.

              	
                The
                  Owner is aware (i) of the tax that would be imposed on transfers
                  of the
                  Class R Certificates to disqualified organizations under the Internal
                  Revenue Code of 1986 that applies to all transfers of the Class
                  R
                  Certificates after April 31, 1988; (ii) that such tax would be
                  on the
                  transferor or, if such transfer is through an agent (which person
                  includes
                  a broker, nominee or middleman) for a non-Permitted Transferee,
                  on the
                  agent; (iii) that the person otherwise liable for the tax shall
                  be
                  relieved of liability for the tax if the transferee furnishes to
                  such
                  person an affidavit that the transferee is a Permitted Transferee
                  and, at
                  the time of transfer, such person does not have actual knowledge
                  that the
                  affidavit is false; and (iv) that each of the Class R Certificates
                  may be
                  a “noneconomic residual interest” within the meaning of proposed Treasury
                  regulations promulgated under 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 is to impede the assessment or collection
                  of
                  tax.

                 

              
	
                4.

              	
                The
                  Owner is aware of the tax imposed on a “pass-through entity” holding the
                  Class R Certificates if, at any time during the taxable year of
                  the
                  pass-through entity, a non-Permitted Transferee is the record holder
                  of an
                  interest in such entity. (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
                  cooperatives.)

                 

              
	
                5.

              	
                The
                  Owner is aware that the Securities Administrator will not register
                  the
                  transfer of any Class R Certificate unless the transferee, or the
                  transferee’s agent, delivers to the Securities Administrator, among other
                  things, an affidavit in substantially the same form as this affidavit.
                  The
                  Owner expressly agrees that it will not consummate any such transfer
                  if it
                  knows or believes that any of the representations contained in
                  such
                  affidavit and agreement are false.

                 

              
	
                6.

              	
                The
                  Owner consents to any additional restrictions or arrangements that
                  shall
                  be deemed necessary upon advice of counsel to constitute a reasonable
                  arrangement to ensure that the Class R Certificates will only be
                  owned,
                  directly or indirectly, by an Owner that is a Permitted
                  Transferee.

                 

              
	
                7.

              	
                The
                  Owner’s taxpayer identification number is ________________.

                 

              
	
                8.

              	
                The
                  Owner has reviewed the restrictions set forth on the face of the
                  Class R
                  Certificates and the provisions of Section 6.02(d) of the Pooling
                  and
                  Servicing Agreement under which the Class R Certificates were issued
                  (in
                  particular, clauses (iii)(A) and (iii)(B) of Section 6.02(d) which
                  authorize the Securities Administrator to deliver payments to a
                  person
                  other than the Owner and negotiate a mandatory sale by the Securities
                  Administrator in the event that the Owner holds such Certificate
                  in
                  violation of Section 6.02(d)); and that the Owner expressly agrees
                  to be
                  bound by and to comply with such restrictions and provisions.

                 

              
	
                9.

              	
                The
                  Owner is not acquiring and will not transfer the Class R Certificates
                  in
                  order to impede the assessment or collection of any tax.

                 

              
	
                10.

              	
                The
                  Owner anticipates that it will, so long as it holds the Class R
                  Certificates, have sufficient assets to pay any taxes owed by the
                  holder
                  of such Class R Certificates, and hereby represents to and for
                  the benefit
                  of the person from whom it acquired the Class R Certificates that
                  the
                  Owner intends to pay taxes associated with holding such Class R
                  Certificates as they become due, fully understanding that it may
                  incur tax
                  liabilities in excess of any cash flows generated by the Class
                  R
                  Certificates.

                 

              
	
                11.

              	
                The
                  Owner has no present knowledge that it may become insolvent or
                  subject to
                  a bankruptcy proceeding for so long as it holds the Class R
                  Certificates.

                 

              
	
                12.

              	
                The
                  Owner has no present knowledge or expectation that it will be unable
                  to
                  pay any United States taxes owed by it so long as any of the Certificates
                  remain outstanding.

                 

              
	
                13.

              	
                The
                  Owner is not acquiring the Class R Certificates with the intent
                  to
                  transfer the Class R Certificates to any person or entity that
                  will not
                  have sufficient assets to pay any taxes owed by the holder of such
                  Class R
                  Certificates, or that may become insolvent or subject to a bankruptcy
                  proceeding, for so long as the Class R Certificates remain
                  outstanding.

                 

              
	
                14.

              	
                The
                  Owner will, in connection with any transfer that it makes of the
                  Class R
                  Certificates, obtain from its transferee the representations required
                  by
                  Section 6.02(d) of the Pooling and Servicing Agreement under which
                  the
                  Class R Certificate were issued and will not consummate any such
                  transfer
                  if it knows, or knows facts that should lead it to believe, that
                  any such
                  representations are false.

                 

              
	
                15.

              	
                The
                  Owner will, in connection with any transfer that it makes of the
                  Class R
                  Certificates, deliver to the Securities Administrator an affidavit,
                  which
                  represents and warrants that it is not transferring the Class R
                  Certificates to impede the assessment or collection of any tax
                  and that it
                  has no actual knowledge that the proposed transferee: (i) has insufficient
                  assets to pay any taxes owed by such transferee as holder of the
                  Class R
                  Certificates; (ii) may become insolvent or subject to a bankruptcy
                  proceeding for so long as the Class R Certificates remains outstanding;
                  and (iii) is not a “Permitted Transferee”.

                 

              
	
                16.

              	
                The
                  Owner is 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 or any political subdivision thereof, or an estate
                  or
                  trust whose income from sources without the United States may be
                  included
                  in gross income for United States federal income tax purposes regardless
                  of its connection with the conduct of a trade or business within
                  the
                  United States.

                 

              
	
                17.

              	
                The
                  Owner of the Class R Certificate, hereby agrees that in the event
                  that the
                  Trust Fund created by the Pooling and Servicing Agreement is terminated
                  pursuant to Section 10.01 thereof, the undersigned shall assign
                  and
                  transfer to the Holders of the Class CE-1 Certificates any amounts
                  in
                  excess of par received in connection with such termination. Accordingly,
                  in the event of such termination, the Securities Administrator
                  is hereby
                  authorized to withhold any such amounts in excess of par and to
                  pay such
                  amounts directly to the Holders of the Class CE-1 Certificates.
                  This
                  agreement shall bind and be enforceable against any successor,
                  transferee
                  or assigned of the undersigned in the Class R Certificate. In connection
                  with any transfer of the Class R Certificate, the Owner shall obtain
                  an
                  agreement substantially similar to this clause from any subsequent
                  owner.

              

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF, the Owner has caused this instrument to be executed on its
        behalf, pursuant to the authority of its Board of Directors, by its [Vice]
        President, attested by its [Assistant] Secretary, this ____ day of
        _________________, ____.

       

      
        	 	 	 	 	 	 	 	
                [OWNER]

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:

              	 
	 	 	 	 	 	 	 	
                Name:

              	 
	 	 	 	 	 	 	 	
                Title:

              	
                [Vice]
                  President

              

      

      

       

      ATTEST:

       

      

       

      
        	
                By:

              	 
	
                Name:

              	 
	
                Title:

              	
                [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 a [Vice]
        President of the Owner, and acknowledged to me that [he/she] executed the
        same
        as [his/her] free act and deed and the free act and deed of the
        Owner.

       

      Subscribed
        and sworn before me this ______________ day of __________, ____.

       

      

      

      
        	 	 
	 	
                Notary
                  Public

              
	 	 
	 	
                County
                  of _____________________________

                State
                  of _______________________________

              
	 	 
	 	
                My
                  Commission expires:

              

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      FORM
        OF
        TRANSFEROR AFFIDAVIT

       

      
        	
                STATE
                  OF NEW YORK

              	
                )

              	 
	 	
                )

              	
                ss.:

              
	
                COUNTY
                  OF NEW YORK

              	
                )

              	 

      

       

      _________________________,
        being duly sworn, deposes, represents and warrants as follows:

       

      1. I
        am
        a ____________________
        of _________________________ (the “Owner”), a corporation duly organized and
        existing under the laws of _____________, on behalf of whom I make this
        affidavit.

       

      2. The
        Owner
        is not transferring the Class R Certificates (the “Residual Certificates”) to
        impede the assessment or collection of any tax.

       

      3. The
        Owner
        has no actual knowledge that the Person that is the proposed transferee (the
        “Purchaser”) of the Residual Certificates: (i) has insufficient assets to pay
        any taxes owed by such proposed transferee as holder of the Residual
        Certificates; (ii) may become insolvent or subject to a bankruptcy proceeding
        for so long as the Residual Certificates remain outstanding and (iii) is
        not a
        Permitted Transferee.

       

      4. The
        Owner
        understands that the Purchaser has delivered to the Trustee or a transfer
        affidavit and agreement in the form attached to the Pooling and Servicing
        Agreement as Exhibit B-2. The Owner does not know or believe that any
        representation contained therein is false.

       

      5. At
        the
        time of transfer, the Owner has conducted a reasonable investigation of the
        financial condition of the Purchaser as contemplated by Treasury Regulations
        Section 1.860E-1(c)(4)(i) and, as a result of that investigation, the Owner
        has
        determined that the Purchaser has historically paid its debts as they became
        due
        and has found no significant evidence to indicate that the Purchaser will
        not
        continue to pay its debts as they become due in the future. The Owner
        understands that the transfer of a Residual Certificate may not be respected
        for
        United States income tax purposes (and the Owner may continue to be liable
        for
        United States income taxes associated therewith) unless the Owner has conducted
        such an investigation.

       

      6. Capitalized
        terms not otherwise defined herein shall have the meanings ascribed to them
        in
        the Pooling and Servicing Agreement.

       

      

       

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF, the Owner has caused this instrument to be executed on its
        behalf, pursuant to the authority of its Board of Directors, by its [Vice]
        President, attested by its [Assistant] Secretary, this ____ day of
        ________________, ____.

       

      
        	 	 	 	 	 	 	 	
                [OWNER]

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:

              	 
	 	 	 	 	 	 	 	
                Name:

              	 
	 	 	 	 	 	 	 	
                Title:

              	
                [Vice]
                  President

              

      

      

       

      ATTEST:

      

      

      
        	
                By:

              	 
	
                Name:

              	 
	
                Title:

              	
                [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 a [Vice]
        President of the Owner, and acknowledged to me that [he/she] executed the
        same
        as [his/her] free act and deed and the free act and deed of the
        Owner.

       

      Subscribed
        and sworn before me this ______ day of _____________, ____.

       

      

      

      
        	 	 
	 	
                Notary
                  Public

              
	 	 
	 	
                County
                  of _____________________________

                State
                  of _______________________________

              
	 	 
	 	
                My
                  Commission expires:

              

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EXHIBIT
        C

      

       

      BACK-UP
        CERTIFICATION

       

      Re: __________
        (the “Trust”)

       

      Mortgage
        Pass-Through Certificates, Series 2006-SD2

       

      I,
        [identify the certifying individual], certify to ACE Securities Corp. (the
        “Depositor”), HSBC Bank USA, National Association (the “Trustee”) and Wells
        Fargo Bank, National Association (the “Master Servicer”), and their respective
        officers, directors and affiliates, and with the knowledge and intent that
        they
        will rely upon this certification, that:

       

       

      (1) I
        have
        reviewed the servicer compliance statement of the Company provided in accordance
        with Item 1123 of Regulation AB (the “Compliance Statement”), the report on
        assessment of the Company’s compliance with the servicing criteria set forth in
        Item 1122(d) of Regulation AB (the “Servicing Criteria”), provided in accordance
        with Rules 13a-18 and 15d-18 under Securities Exchange Act of 1934, as amended
        (the “Exchange Act”) and Item 1122 of Regulation AB (the “Servicing
        Assessment”), the registered public accounting firm’s attestation report
        provided in accordance with Rules 13a-18 and 15d-18 under the Exchange Act
        and
        Section 1122(b) of Regulation AB (the “Attestation
        Report”), and all servicing reports, officer’s certificates and other
        information relating to the servicing of the Mortgage Loans by the Company
        during 200[ ] that were delivered by the Company to the Master Servicer pursuant
        to the Agreement (collectively, the “Company Servicing
        Information”);

       

      (2) Based
        on
        my knowledge, the Company Servicing Information, taken as a whole, does not
        contain any untrue statement of a material fact or omit to state a material
        fact
        necessary to make the statements made, in the light of the circumstances
        under
        which such statements were made, not misleading with respect to the period
        of
        time covered by the Company Servicing Information;

       

      (3) Based
        on
        my knowledge, all of the Company Servicing Information required to be provided
        by the Company under the Agreement has been provided to the Master
        Servicer;

       

      (4) I
        am
        responsible for reviewing the activities performed by the Company as servicer
        under the Agreement, and based on my knowledge and the compliance review
        conducted in preparing the Compliance Statement and except as disclosed in
        the
        Compliance Statement, the Servicing Assessment or the Attestation Report,
        the
        Company has fulfilled its obligations under the Agreement in all material
        respects; and

       

      (5) The
        Compliance Statement required to be delivered by the Company pursuant to
        the
        Agreement, and the Servicing Assessment and Attestation Report required to
        be
        provided by the Company and by any Subservicer or Subcontractor pursuant
        to the
        Agreement, have been provided to the Master Servicer. Any material instances
        of
        noncompliance described in such reports have been disclosed to the Master
        Servicer. Any material instance of noncompliance with the Servicing Criteria
        has
        been disclosed in such reports.

       

      

      Capitalized
        terms used and not otherwise defined herein have the meanings assigned thereto
        in the Pooling and Servicing Agreement, dated as of May 31, 2006, among ACE
        Securities Corp. as Depositor, Wells Fargo Bank, National Association as
        Master
        Servicer, Securities Administrator and as a Servicer, Ocwen Loan Servicing,
        LLC
        as a Servicer and HSBC Bank USA, National Association as Trustee.

       

      

       

      

       

      
        	
                Date:

              	 
	 
	 
	
                [Signature]

              
	 
	
                [Title]

              

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EXHIBIT
        D

      

      FORM
        OF
        POWER OF ATTORNEY

      

      RECORDING
        REQUESTED BY

      AND
        WHEN
        RECORDED MAIL TO

      [Servicer]

      [Servicer’s
        Address]

      Attn:
        _________________________________

      

      

      LIMITED
        POWER OF ATTORNEY

      

      

      KNOW
        ALL
        MEN BY THESE PRESENTS, that HSBC Bank USA, National Association, having its
        principal place of business at _______________________,
        as
        Trustee (the “Trustee”) pursuant to that Pooling and Servicing Agreement among
        ACE Securities Corp. (the “Depositor”), Ocwen Loan Servicing, LLC as a servicer
        (“Ocwen”), Wells Fargo Bank, National Association as a servicer (“Wells Fargo”),
        Wells Fargo Bank, National Association as master servicer (the “Master
        Servicer”) and as securities administrator (the “Securities Administrator”) and
        the Trustee, dated as of May 31, 2006 (the “Pooling and Servicing Agreement”),
        hereby constitutes and appoints [Ocwen][Wells Fargo], by and through
        [Ocwen][Wells Fargo]’s officers, the Trustee’s true and lawful Attorney-in-Fact,
        in the Trustee’s name, place and stead and for the Trustee’s benefit, in
        connection with all mortgage loans serviced by [Ocwen][Wells Fargo] pursuant
        to
        the Pooling and Servicing Agreement for the purpose of performing all acts
        and
        executing all documents in the name of the Trustee as may be customarily
        and
        reasonably necessary and appropriate to effectuate the following enumerated
        transactions in respect of any of the mortgages or deeds of trust (the
“Mortgages” and the “Deeds of Trust”, respectively) and promissory notes secured
        thereby (the “Mortgage Notes”) for which the undersigned is acting as Trustee
        for various certificateholders (whether the undersigned is named therein
        as
        mortgagee or beneficiary or has become mortgagee by virtue of endorsement
        of the
        Mortgage Note secured by any such Mortgage or Deed of Trust) and for which
        [Ocwen][Wells Fargo] is acting as servicer, all subject to the terms of the
        Pooling and Servicing Agreement.

      

      This
        appointment shall apply to the following enumerated transactions
        only:

      

      
        	
                1.

              	
                The
                  modification or re-recording of a Mortgage or Deed of Trust, where
                  said
                  modification or re-recordings is for the purpose of correcting
                  the
                  Mortgage or Deed of Trust to conform same to the original intent
                  of the
                  parties thereto or to correct title errors discovered after such
                  title
                  insurance was issued and said modification or re-recording, in
                  either
                  instance, does not adversely affect the lien of the Mortgage or
                  Deed of
                  Trust as insured.

              
	 	 
	
                2.

              	
                The
                  subordination of the lien of a Mortgage or Deed of Trust to an
                  easement in
                  favor of a public utility company of a government agency or unit
                  with
                  powers of eminent domain; this section shall include, without limitation,
                  the execution of partial satisfactions/releases, partial reconveyances
                  or
                  the execution or requests to trustees to accomplish
                  same.

              
	 	 
	
                3.

              	
                The
                  conveyance of the properties to the mortgage insurer, or the closing
                  of
                  the title to the property to be acquired as real estate owned,
                  or
                  conveyance of title to real estate owned.

              
	 	 
	
                4.

              	
                The
                  completion of loan assumption agreements.

              
	 	 
	
                5.

              	
                The
                  full satisfaction/release of a Mortgage or Deed of Trust or full
                  conveyance upon payment and discharge of all sums secured thereby,
                  including, without limitation, cancellation of the related Mortgage
                  Note.

              
	 	 
	
                6.

              	
                The
                  assignment of any Mortgage or Deed of Trust and the related Mortgage
                  Note,
                  in connection with the repurchase of the mortgage loan secured
                  and
                  evidenced thereby.

              
	 	 
	
                7.

              	
                The
                  full assignment of a Mortgage or Deed of Trust upon payment and
                  discharge
                  of all sums secured thereby in conjunction with the refinancing
                  thereof,
                  including, without limitation, the assignment of the related Mortgage
                  Note.

              
	 	 
	
                8.

              	
                With
                  respect to a Mortgage or Deed of Trust, the foreclosure, the taking
                  of a
                  deed in lieu of foreclosure, or the completion of judicial or non-judicial
                  foreclosure or termination, cancellation or rescission of any such
                  foreclosure, including, without limitation, any and all of the
                  following
                  acts:

              

      

      

      
        	
                a.

              	
                the
                  substitution of trustee(s) serving under a Deed of Trust, in accordance
                  with state law and the Deed of Trust;

              
	 	 
	
                b.

              	
                the
                  preparation and issuance of statements of breach or
                  non-performance;

              
	 	 
	
                c.

              	
                the
                  preparation and filing of notices of default and/or notices of
                  sale;

              
	 	 
	
                d.

              	
                the
                  cancellation/rescission of notices of default and/or notices of
                  sale;

              
	 	 
	
                e.

              	
                the
                  taking of a deed in lieu of foreclosure; and

              
	 	 
	
                f.

              	
                the
                  preparation and execution of such other documents and performance
                  of such
                  other actions as may be necessary under the terms of the Mortgage,
                  Deed of
                  Trust or state law to expeditiously complete said transactions
                  in
                  paragraphs 8.a. through 8.e.,
                  above.

              

      

      

      The
        undersigned gives said Attorney-in-Fact full power and authority to execute
        such
        instruments and to do and perform all and every act and thing necessary and
        proper to carry into effect the power or powers granted by or under this
        Limited
        Power of Attorney as fully as the undersigned might or could do, and hereby
        does
        ratify and confirm to all that said Attorney-in-Fact shall lawfully do or
        cause
        to be done by authority hereof. 

       

      Third
        parties without actual notice may rely upon the exercise of the power granted
        under this Limited Power of Attorney; and may be satisfied that this Limited
        Power of Attorney shall continue in full force and effect and has not been
        revoked unless an instrument of revocation has been made in writing by the
        undersigned.

      

      IN
        WITNESS WHEREOF, _________________
        as
        Trustee pursuant to that Pooling and Servicing Agreement among the Depositor,
        Ocwen, Wells Fargo, the Master Servicer, the Securities Administrator and
        the
        Trustee, dated as of May 31, 2006 (ACE Securities Corp. Home Equity Loan
        Trust,
        Series 2006-SD2 Asset Backed Pass-Through Certificates), has caused its
        corporate seal to be hereto affixed and these presents to be signed and
        acknowledged in its name and behalf by ____________
        its duly
        elected and authorized Vice President this ___
        day of
___________,
        200__.

      

      

      
        	 	 	 	 	 	 	 	
                as
                  Trustee for ACE Securities Corp. Home Equity Loan Trust, Series
                  2006-SD2

                Asset
                  Backed Pass-Through Certificates

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:

              	 
	 	 	 	 	 	 	 	 	 

      

      

      

      
        	
                STATE
                  OF

              	 
	 	 
	
                COUNTY
                  OF

              	 

      

      

      

      On
        _______________,
        200__,
        before me, the undersigned, a Notary Public in and for said state, personally
        appeared _____________,
        Vice
        President of __________________
        as
        Trustee for ACE Securities Corp. Home Equity Loan Trust, Series 2006-SD2
        Asset
        Backed Pass-Through Certificates, personally known to me to be the person
        whose
        name is subscribed to the within instrument and acknowledged to me that he/she
        executed that same in his/her authorized capacity, and that by his/her signature
        on the instrument the entity upon behalf of which the person acted and executed
        the instrument.

      

      WITNESS
        my hand and official seal.

      (SEAL)

      
        	 	 
	 	
                Notary
                  Public

              
	
                My
                  Commission Expires  

              	 
	 	 

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EXHIBIT
        E

      

      SERVICING
        CRITERIA

      

      

      SERVICING
        CRITERIA TO BE ADDRESSED IN ASSESSMENT OF COMPLIANCE

      

      Schedule
        1122 (Pooling and Servicing Agreement)

       

      Assessments
        of Compliance and Attestation Reports Servicing Criteria2 

      

      
        	
                Reg.
                  AB Item 1122(d) Servicing Criteria

              	
                Depositor

              	
                Seller

              	
                Servicer

              	
                Trustee

              	
                Custodian

              	
                Paying
                  Agent

              	
                Master
                  Servicer

              	
                Securities
                  Administrator

              
	
                (1) General
                  Servicing Considerations

              	 	 	 	 	 	 	 	 
	
                (i) monitoring
                  performance or other triggers and events of default

              	 	 	
                X

              	 	 	 	
                X

              	
                X

              
	
                (ii) monitoring
                  performance of vendors of activities outsourced

              	 	 	
                X

              	 	 	 	
                X

              	 
	
                (iii) maintenance
                  of back-up servicer for pool assets

              	 	 	 	 	 	 	 	 
	
                (iv) fidelity
                  bond and E&O policies in effect

              	 	 	
                X

              	 	 	 	
                X

              	 
	
                (2) Cash
                  Collection and Administration

              	 	 	 	 	 	 	 	 
	
                (i) timing
                  of deposits to custodial account

              	 	 	
                X

              	 	 	
                X

              	
                X

              	
                X

              
	
                (ii) wire
                  transfers to investors by authorized personnel

              	 	 	
                X

              	 	 	
                X

              	 	
                X

              
	
                (iii) advances
                  or guarantees made, reviewed and approved as required

              	 	 	
                X

              	 	 	 	
                X

              	 
	
                (iv) accounts
                  maintained as required

              	 	 	
                X

              	 	 	
                X

              	
                X

              	
                X

              
	
                (v) accounts
                  at federally insured depository institutions

              	 	 	
                X

              	 	 	
                X

              	
                X

              	
                X

              
	
                (vi) unissued
                  checks safeguarded

              	 	 	
                X

              	 	 	
                X

              	 	
                X

              
	
                (vii) monthly
                  reconciliations of accounts

              	 	 	
                X

              	 	 	
                X

              	
                X

              	
                X

              
	
                (3) Investor
                  Remittances and Reporting

              	 	 	 	 	 	 	 	 
	
                (i) investor
                  reports

              	 	 	
                X

              	 	 	 	
                X

              	
                X

              
	
                (ii) remittances

              	 	 	
                X

              	 	 	
                X

              	 	
                X

              
	
                (iii) proper
                  posting of distributions

              	 	 	
                X

              	 	 	
                X

              	 	
                X

              
	
                (iv) reconciliation
                  of remittances and payment statements

              	 	 	
                X

              	 	 	
                X

              	
                X

              	
                X

              
	
                (4) Pool
                  Asset Administration

              	 	 	 	 	 	 	 	 
	
                (i) maintenance
                  of pool collateral

              	 	 	
                X

              	 	
                X

              	 	 	 
	
                (ii) safeguarding
                  of pool assets/documents

              	 	 	
                X

              	 	
                X

              	 	 	 
	
                (iii) additions,
                  removals and substitutions of pool assets

              	 	
                X

              	
                X

              	 	 	 	 	 
	
                (iv) posting
                  and allocation of pool asset payments to pool assets

              	 	 	
                X

              	 	 	 	 	 
	
                (v) reconciliation
                  of servicer records

              	 	 	
                X

              	 	 	 	 	 
	
                (vi) modifications
                  or other changes to terms of pool assets

              	 	 	
                X

              	 	 	 	 	 
	
                (vii) loss
                  mitigation and recovery actions

              	 	 	
                X

              	 	 	 	 	 
	
                (viii)records
                  regarding collection efforts

              	 	 	
                X

              	 	 	 	 	 
	
                (ix) adjustments
                  to variable interest rates on pool assets

              	 	 	
                X

              	 	 	 	 	 
	
                (x) matters
                  relating to funds held in trust for obligors

              	 	 	
                X

              	 	 	 	 	 
	
                (xi) payments
                  made on behalf of obligors (such as for taxes or
                  insurance)

              	 	 	
                X

              	 	 	 	 	 
	
                (xii) late
                  payment penalties with respect to payments made on behalf of obligors
                  

              	 	 	
                X

              	 	 	 	 	 
	
                (xiii)records
                  with respect to payments made on behalf of obligors

              	 	 	
                X

              	 	 	 	 	 
	
                (xiv) recognition
                  and recording of delinquencies, charge-offs and uncollectible
                  accounts

              	 	 	
                X

              	 	 	 	
                X

              	 
	
                (xv) maintenance
                  of external credit enhancement or other support

              	 	 	 	 	 	 	 	 

      

      

      

        

        
          *
            The
            descriptions of the Item 1122(d) servicing criteria use key words and
            phrases
            and are not verbatim recitations of the servicing criteria. Refer to
            Regulation
            AB, Item 1122 for a full description of servicing
            criteria.

        

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EXHIBIT
        F

      

      MORTGAGE
        LOAN PURCHASE AGREEMENT

      
         

        This
          is a
          Mortgage Loan Purchase Agreement (this “Agreement”), dated June 26, 2006,
          between DB Structured Products, Inc., a Delaware corporation (the “Seller”) and
          ACE Securities Corp., a Delaware corporation (the “Purchaser”).

         

        Preliminary
          Statement

         

        The
          Seller intends to sell the Mortgage Loans (as hereinafter identified) to
          the
          Purchaser on the terms and subject to the conditions set forth in this
          Agreement. The Purchaser intends to deposit the Mortgage Loans into a mortgage
          pool comprising the Trust Fund. The Trust Fund will be evidenced by a single
          series of mortgage pass-through certificates designated as ACE Securities
          Corp.
          Home Equity Loan Trust, Series 2006-SD2, Asset Backed Pass-Through Certificates
          (the “Certificates”). The Certificates will consist of ten classes of
          certificates. The Certificates will be issued pursuant to a Pooling and
          Servicing Agreement for ACE Securities Corp. Home Equity Loan Trust, Series
          2006-SD2, Asset Backed Pass-Through Certificates, dated as of May 31, 2006
          (the
“Pooling and Servicing Agreement”), among the Purchaser as depositor, Wells
          Fargo Bank, National Association as master servicer (the “Master Servicer”) and
          securities administrator (the “Securities Administrator”), Ocwen Loan Servicing,
          LLC as a servicer (“Ocwen”), Wells Fargo Bank, National Association as a
          servicer (“Wells Fargo”) and HSBC Bank USA, National Association, as trustee
          (the “Trustee”). Certain of the Mortgage Loans will be serviced by Select
          Portfolio Servicing, Inc. (“SPS”, and together with Ocwen and Wells Fargo, each
          a “Servicer” and collectively the “Servicers”) pursuant to a separate servicing
          agreement between the Seller and SPS (the “SPS Servicing Agreement”) which will
          be assigned to the Purchaser as of the date hereof. The Purchaser will
          sell the
          Class A, Class M-1, Class M-2, Class M-3, Class M-4 and Class M-5 Certificates
          (collectively, the “Offered Certificates”) to Deutsche Bank Securities Inc.
          (“DBSI”), pursuant to the Second Amended and Restated Underwriting Agreement,
          dated June 24, 1999, as amended and restated to and including January 25,
          2006, between the Purchaser and DBSI, and the Terms Agreement, dated June
          22,
          2006 (collectively, the “Underwriting Agreement”), between the Purchaser and
          DBSI. Capitalized terms used but not defined herein shall have the meanings
          set
          forth in the Pooling and Servicing Agreement. 

         

        The
          parties hereto agree as follows:

         

        SECTION
          1. Agreement
          to Purchase.
          The
          Seller hereby sells, and the Purchaser hereby purchases, on or before June
          26,
          2006 (the “Closing Date”), certain fixed-rate and adjustable-rate, residential
          first and second lien mortgage loans on mortgaged properties consisting
          of
          attached, detached or semi-detached, one to four-family dwelling units,
          individual condominium units, manufactured homes and individual units in
          planned
          unit developments (the “Mortgage Loans”), having an aggregate principal balance
          as of the close of business on May 31, 2006 (the “Cut-off Date”) of
          approximately $145,159,298 (the “Closing Balance”), including the right to any
          Prepayment Charges payable by the related Mortgagors in connection with
          any
          Principal Prepayments on the Mortgage Loans, but excluding the rights to
          the
          servicing of the Mortgage Loans which shall be retained by the Seller (the
          “Servicing Rights”).

         

        SECTION
          2. Closing
          Schedule.
          The
          Purchaser and the Seller have agreed upon which of the mortgage loans owned
          by
          the Seller are to be purchased by the Purchaser pursuant to this Agreement
          and
          the Seller will prepare or cause to be prepared on or prior to the Closing
          Date
          a final schedule (the “Closing Schedule”) that shall describe such Mortgage
          Loans and set forth all of the Mortgage Loans to be purchased under this
          Agreement, including the Prepayment Charges. The Closing Schedule will
          conform
          to the requirements set forth in this Agreement and to the definition of
          “Mortgage
          Loan Schedule”
under
          the Pooling and Servicing Agreement.

         

        SECTION
          3. Consideration.

         

        (a) In
          consideration for the Mortgage Loans to be purchased hereunder, the Purchaser
          shall, as described in Section 8, pay to or upon the order of the Seller
          in
          immediately available funds an amount (the “Purchase Price”) equal to (i)
          $__________1 
          and (ii)
          a 100% interest in the Class CE-1, Class CE-2, Class P and Class R Certificates
          (collectively the “DB Certificates”). The DB Certificates shall be in the name
          of “Deutsche Bank Securities Inc.”

         

        (b) The
          Purchaser or any assignee, transferee or designee of the Purchaser shall
          be
          entitled to (i) with respect to all of the Mortgage Loans other than the
          Mortgage Loans set forth on Schedule
          B
          attached
          hereto, all payments of principal collected after the Cut-off Date and
          all
          payments of interest on the Mortgage Loans collected after the Cut-off
          Date and
          (ii) with respect to the Mortgage Loans set forth on Schedule
          B
          attached
          hereto, all scheduled principal due after the related Cut-off Date, all
          other
          recoveries of principal collected after the Cut-off Date (provided, however,
          that all scheduled payments of principal due on or before the Cut-off Date
          and
          collected by the Seller after the Cut-off Date shall belong to the Seller),
          and
          all payments of interest on the Mortgage Loans (minus that portion of any
          such
          interest payment that is allocable to the period prior to the Cut-off
          Date).

         

        (c) Pursuant
          to the Pooling and Servicing Agreement, the Purchaser will assign all of
          its
          right, title and interest in and to the Mortgage Loans, together with its
          rights
          under this Agreement, to the Trustee for the benefit of the
          Certificateholders.

         

        SECTION
          4. Transfer
          of the Mortgage Loans.

         

        (a) Possession
          of Mortgage Files.  The
          Seller does hereby sell to the Purchaser, without recourse but subject
          to the
          terms of this Agreement, all of its right, title and interest in, to and
          under
          the Mortgage Loans, including the Prepayment Charges on the Mortgage Loans,
          but
          excluding the Servicing Rights. The contents of each Mortgage File not
          delivered
          to the Purchaser or to any assignee, transferee or designee of the Purchaser
          on
          or prior to the Closing Date and not listed as a defect on Schedule
          A
          attached
          hereto are and shall be held in trust by the Seller for the benefit of
          the
          Purchaser or any assignee, transferee or designee of the
          Purchaser.  Upon the sale of the Mortgage Loans, the ownership of each
          Mortgage Note, the related Mortgage and the other contents of the related
          Mortgage File is vested in the Purchaser and the ownership of all records
          and
          documents with respect to the related Mortgage Loan prepared by or that
          come
          into the possession of the Seller on or after the Closing Date shall immediately
          vest in the Purchaser and shall be delivered immediately to the Purchaser
          or as
          otherwise directed by the Purchaser.

         

        (b) Delivery
          of Mortgage Loan Documents.  Except
          as set forth on Schedule
          A
          attached
          hereto, the Seller will, on or prior to the Closing Date, deliver or cause
          to be
          delivered to the Purchaser or any assignee, transferee or designee of the
          Purchaser each of the following documents for each Mortgage Loan:

         

        (A) the
          original Mortgage Note (including all riders thereto) bearing all intervening
          endorsements necessary to show a complete chain of endorsements from the
          original payee, endorsed in blank, via
          original signature,
          and, if
          previously endorsed, signed in the name of the last endorsee by a duly
          qualified
          officer of the last endorsee. If
          the
          Mortgage Loan was acquired by the last endorsee in a merger, the endorsement
          must be by “[name of last endorsee], successor by merger to [name of
          predecessor]”. If the Mortgage Loan was acquired or originated by the last
          endorsee while doing business under another name, the endorsement must
          be by
“[name of last endorsee], formerly known as [previous name]”;

         

        (B) Reserved;

         

        (C) the
          original Assignment of Mortgage executed in blank;

         

        (D) the
          original of any guarantee executed in connection with the Mortgage Note,
          if
          any;

         

        (E) the
          original Mortgage (including all riders thereto) with evidence of recording
          thereon and the original recorded power of attorney, if the Mortgage was
          executed pursuant to a power of attorney, with evidence of recording thereon,
          and in the case of each MOM Loan, the original Mortgage, noting the presence
          of
          the MIN of the Mortgage Loan and either language indicating that the Mortgage
          Loan is a MOM Loan or if the Mortgage Loan was not a MOM Loan at origination,
          the original Mortgage and the assignment thereof to MERS®, with evidence of
          recording indicated thereon; or, if the original Mortgage with evidence
          of
          recording thereon has not been returned by the public recording office
          where
          such Mortgage has been delivered for recordation or such Mortgage has been
          lost
          or such public recording office retains the original recorded Mortgage,
          a
          photocopy of such Mortgage, together with (i) in the case of a delay caused
          by
          the public recording office, an officer’s certificate of the title insurer
          insuring the Mortgage, the escrow agent, the seller or the related Servicer
          stating that such Mortgage has been delivered to the appropriate public
          recording office for recordation and that the original recorded Mortgage
          or a
          copy of such Mortgage certified by such public recording office to be a
          true and
          complete copy of the original recorded Mortgage will be promptly delivered
          to
          the Purchaser’s designee upon receipt thereof by the party delivering the
          officer’s certificate or by the related Servicer; or (ii) in the case of a
          Mortgage where a public recording office retains the original recorded
          Mortgage
          or in the case where a Mortgage is lost after recordation in a public recording
          office, a copy of such Mortgage with the recording information thereon
          certified
          by such public recording office to be a true and complete copy of the original
          recorded Mortgage;

         

        (F) the
          originals of all assumption, modification, consolidation or extension
          agreements, with evidence of recording thereon, if any;

         

        (G) the
          originals of any intervening assignments of mortgage with evidence of recording
          thereon evidencing a complete chain of ownership from the originator of
          the
          Mortgage Loan to the last assignee, or if any such intervening assignment
          of
          mortgage has not been returned from the applicable public recording office
          or
          has been lost or if such public recording office retains the original recorded
          intervening assignments of mortgage, a photocopy of such intervening assignment
          of mortgage, together with (i) in the case of a delay caused by the public
          recording office, an officer’s certificate of the title insurer insuring the
          Mortgage, the escrow agent, the seller or the related Servicer stating
          that such
          intervening assignment of mortgage has been delivered to the appropriate
          public
          recording office for recordation and that such original recorded intervening
          assignment of mortgage or a copy of such intervening assignment of mortgage
          certified by the appropriate public recording office to be a true and complete
          copy of the original recorded intervening assignment of mortgage will be
          promptly delivered to the Purchaser’s designee upon receipt thereof by the party
          delivering the officer’s certificate or by the related Servicer; or (ii) in the
          case of an intervening assignment of mortgage where a public recording
          office
          retains the original recorded intervening assignment of mortgage or in
          the case
          where an intervening assignment of mortgage is lost after recordation in
          a
          public recording office, a copy of such intervening assignment of mortgage
          with
          recording information thereon certified by such public recording office
          to be a
          true and complete copy of the original recorded intervening assignment
          of
          mortgage;

         

        (H) if
          the
          Mortgage Note, the Mortgage, any Assignment of Mortgage, or any other related
          document 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;

         

        (I) the
          original lender’s title insurance policy in the form of an ALTA mortgage title
          insurance policy
          or,
          if the
          original lender’s title insurance policy has not been issued, the irrevocable
          commitment to issue the same; provided, that the Seller shall deliver such
          original title insurance policy to the Purchaser or any assignee, transferee
          or
          designee of the Purchaser promptly upon receipt by the Seller, if any;
          and

         

        (J) the
          original of any security agreement, chattel mortgage or equivalent document
          executed in connection with the Mortgage, if any.

         

        Notwithstanding
          anything to the contrary contained in this Section 4, with respect to certain
          of
          the Mortgage Loans, if any original Mortgage Note referred to in this Section
          4(b) cannot be located, the obligations of the Seller to deliver such document
          shall be deemed to be satisfied upon delivery to the Purchaser or any assignee,
          transferee or designee of the Purchaser of a photocopy of such Mortgage
          Note, if
          available, with a lost note affidavit substantially in the form of Exhibit
          1
          attached
          hereto. If any of the original Mortgage Notes for which a lost note affidavit
          was delivered to the Purchaser or any assignee, transferee or designee
          of the
          Purchaser is subsequently located, such original Mortgage Note shall be
          delivered to the Purchaser or any assignee, transferee or designee of the
          Purchaser within three Business Days.

         

        Each
          original document relating to a Mortgage Loan which is not delivered to
          the
          Purchaser or its assignee, transferee or designee, if held by the Seller,
          shall
          be so held for the benefit of the Purchaser, its assignee, transferee or
          designee.

         

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

         

        (c) Acceptance
          of Mortgage Loans.
          The
          documents delivered pursuant to Section 4(b) hereof shall be reviewed by
          the
          Purchaser or any assignee, transferee or designee of the Purchaser at any
          time
          before or after the Closing Date (and with respect to each document permitted
          to
          be delivered after the Closing Date, within seven days of its delivery)
          to
          ascertain that all required documents have been executed and received and
          that
          such documents relate to the Mortgage Loans identified on the Closing
          Schedule.

         

        (d) Transfer
          of Interest in Agreements.
          The
          Purchaser has the right to assign its interest under this Agreement, in
          whole or
          in part, to the Trustee, as may be required to effect the purposes of the
          Pooling and Servicing Agreement, without the consent of the Seller, and
          the
          assignee shall succeed to the rights and obligations hereunder of the
          Purchaser.  Any expense reasonably incurred by or on behalf of the
          Purchaser or the Trustee in connection with enforcing any obligations of
          the
          Seller under this Agreement will be promptly reimbursed by the
          Seller.

         

        (e) Examination
          of Mortgage Files.
          Prior
          to the Closing Date, the Seller shall either (i) deliver in escrow to the
          Purchaser or to any assignee, transferee or designee of the Purchaser for
          examination the Mortgage File pertaining to each Mortgage Loan, or (ii)
          make
          such Mortgage Files available to the Purchaser or to any assignee, transferee
          or
          designee of the Purchaser for examination.  Such examination may be
          made by the Purchaser or the Trustee, and their respective designees, upon
          reasonable notice to the Seller during normal business hours before the
          Closing
          Date and within 60 days after the Closing Date.  If any such person
          makes such examination prior to the Closing Date and identifies any Mortgage
          Loans that do not conform to the requirements of the Purchaser as described
          in
          this Agreement, including the exceptions set forth in Schedule
          A
          attached
          hereto, such Mortgage Loans shall be deleted from the Closing
          Schedule.  The Purchaser may, at its option and without notice to the
          Seller, purchase all or part of the Mortgage Loans without conducting any
          partial or complete examination.  The fact that the Purchaser or any
          person has conducted or has failed to conduct any partial or complete
          examination of the Mortgage Files shall not affect the rights of the Purchaser
          or any assignee, transferee or designee of the Purchaser to demand repurchase
          or
          other relief as provided herein or under the Pooling and Servicing
          Agreement.

         

        SECTION
          5. Representations,
          Warranties and Covenants of the Seller.

         

        The
          Seller hereby represents and warrants to the Purchaser, as of the date
          hereof
          and as of the Closing Date, and covenants, that:

         

        (i) The
          Seller is a Delaware corporation with full corporate power and authority
          to
          conduct its business as presently conducted by it to the extent material
          to the
          consummation of the transactions contemplated herein. The Agreement has
          been
          duly authorized, executed and delivered by the Seller. The Seller had the
          full
          corporate power and authority to own the Mortgage Loans and to transfer
          and
          convey the Mortgage Loans to the Purchaser and has the full corporate power
          and
          authority to execute and deliver, engage in the transactions contemplated
          by,
          and perform and observe the terms and conditions of this Agreement;

         

        (ii) The
          Seller has duly authorized the execution, delivery and performance of this
          Agreement, has duly executed and delivered this Agreement, and this Agreement,
          assuming due authorization, execution and delivery by the Purchaser, constitutes
          a legal, valid and binding obligation of the Seller, enforceable against
          it in
          accordance with its terms except as the enforceability thereof may be limited
          by
          (i) bankruptcy, insolvency or reorganization or general principles of
          equity;

         

        (iii) The
          execution, delivery and performance of this Agreement by the Seller (x)
          does not
          conflict and will not conflict with, does not breach and will not result
          in a
          breach of and does not constitute and will not constitute a default (or
          an
          event, which with notice or lapse of time or both, would constitute a default)
          under (A) any terms or provisions of the organizational documents of the
          Seller,
          (B) any term or provision of any material agreement, contract, instrument
          or
          indenture, to which the Seller is a party or by which the Seller or any
          of its
          property is bound, or (C) any law, rule, regulation, order, judgment, writ,
          injunction or decree of any court or governmental authority having jurisdiction
          over the Seller or any of its property and (y) does not create or impose
          and
          will not result in the creation or imposition of any lien, charge or encumbrance
          (other than any created hereby in favor of the Purchaser and its assignees)
          which would have a material adverse effect upon the Mortgage Loans or any
          documents or instruments evidencing or securing the Mortgage Loans;

         

        (iv) No
          consent, approval, authorization or order of, registration or filing with,
          or
          notice on behalf of the Seller to any governmental authority or court is
          required, under federal laws or the laws of the State of New York, for
          the
          execution, delivery and performance by the Seller of, or compliance by
          the
          Seller with, this Agreement or the consummation by the Seller of any other
          transaction contemplated hereby and by the Pooling and Servicing Agreement;
          provided, however, that the Seller makes no representation or warranty
          regarding
          federal or state securities laws in connection with the sale or distribution
          of
          the Certificates;

         

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

         

        (vi) The
          Seller does not believe, nor does it have any reason or cause to believe,
          that
          it cannot perform each and every covenant contained in this
          Agreement;

         

        (vii) The
          Mortgage Loan Documents and any other documents required to be delivered
          with
          respect to each Mortgage Loan pursuant to this Agreement have been delivered
          to
          the Custodians, all in compliance with the specific requirements of this
          Agreement;

         

        (viii) Immediately
          prior to the payment of the Purchase Price for each Mortgage Loan, the
          Seller
          was the owner of record of the related Mortgage and the indebtedness evidenced
          by the related Mortgage Note and upon the payment of the Purchase Price
          by the
          Purchaser, in the event that the Seller retains record title, the Seller
          shall
          retain such record title to each Mortgage, each related Mortgage Note and
          the
          related Mortgage Files with respect thereto in trust for the Purchaser
          as the
          owner thereof and only for the purpose of servicing and supervising the
          servicing of each Mortgage Loan;

         

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

         

        (x) The
          consummation of the transactions contemplated by this Agreement are in
          the
          ordinary course of business of the Seller, and the transfer, assignment
          and
          conveyance of the Mortgage Notes and the Mortgages by the Seller pursuant
          to
          this Agreement are not subject to the bulk transfer or any similar statutory
          provisions in effect in any relevant jurisdiction, except any as may have
          been
          complied with;

         

        (xi) The
          Seller has not dealt with any broker, investment banker, agent or other
          person,
          except for the Purchaser or any of its affiliates, that may be entitled
          to any
          commission or compensation in connection with the sale of the Mortgage
          Loans
          (except that an entity that previously financed the Seller’s ownership of the
          Mortgage Loans may be entitled to a fee to release its security interest
          in the
          Mortgage Loans, which fee shall have been paid and which security interest
          shall
          have been released on or prior to the Closing Date);

         

        (xii) There
          is
          no litigation currently pending or, to the best of the Seller’s knowledge
          without independent investigation, threatened against the Seller that would
          reasonably be expected to adversely affect the transfer of the Mortgage
          Loans,
          the issuance of the Certificates or the execution, delivery, performance
          or
          enforceability of this Agreement, or that would result in a material adverse
          change in the financial condition of the Seller; and

         

        (xiii) The
          information set forth in the applicable part of the Closing Schedule relating
          to
          the existence of a Prepayment Charge on the Mortgage Loans is complete,
          true and
          correct in all material respects at the date or dates respecting which
          such
          information is furnished and each Prepayment Charge on the Mortgage Loans
          is
          permissible and enforceable in accordance with its terms upon the mortgagor’s
          full and voluntary principal prepayment under applicable law, except to
          the
          extent that (1) the enforceability thereof may be limited by bankruptcy,
          insolvency, moratorium, receivership and other similar laws relating to
          creditors’ rights generally, (2) the collectability thereof may be limited due
          to acceleration in connection with a foreclosure or other involuntary prepayment
          or (3) subsequent changes in applicable law may limit or prohibit enforceability
          thereof under applicable law.

         

        SECTION
          6. Representations
          and Warranties of the Seller Relating to the Mortgage Loans.

         

        The
          Seller hereby represents and warrants to the Purchaser that as to each
          Mortgage
          Loan as of the Closing Date (unless otherwise specified):

         

        (i) Information
          provided to the Rating Agencies, including the loan level detail set forth
          on
          the Closing Schedule, is true and correct in all material respects as of
          the
          Cut-off Date according to the Rating Agency Requirements;

         

        (ii) With
          respect to each Mortgage Loan other than the Mortgage Loans identified
          on
Schedule
          C
          attached
          hereto, no error, omission, misrepresentation, negligence, fraud or similar
          occurrence has taken place on the part of any person, including without
          limitation the Mortgagor, any appraiser, any builder or developer, or any
          other
          party involved in the origination of such Mortgage Loan or in the application
          of
          any insurance in relation to such Mortgage Loan. With respect to each Mortgage
          Loan identified on Schedule C attached hereto, no material misrepresentation,
          fraud or similar occurrence has taken place on the part of the originator
          and
          Seller;

         

        (iii) Except
          with respect to Mortgage Loans that are delinquent, that have borrowers
          in
          bankruptcy and/or that are subject to forbearance plans (collectively,
          the
“Delinquent/Plan Mortgage Loans”), all payments required to be made prior to the
          Cut-off Date with respect to each Mortgage Loan have been made;

         

        (iv) Neither
          the Seller nor the related originator of the Mortgage Loan has advanced
          any
          Monthly Payment required under the terms of the Mortgage Note;

         

        (v) Except
          with respect to certain of the Delinquent/Plan Mortgage Loans, there are
          no
          delinquent taxes, assessment liens or insurance premiums affecting the
          related
          Mortgaged Property;

         

        (vi) The
          terms
          of the Mortgage Note and the Mortgage have not been materially impaired,
          waived,
          altered or modified in any respect, except by written instruments, recorded
          in
          the applicable public recording office if necessary to maintain the lien
          priority of the Mortgage. The substance of any such waiver, alteration
          or
          modification has been approved by the title insurer, to the extent required
          by
          the related policy. No Mortgagor has been released, in whole or in part,
          except
          in connection with an assumption agreement (approved by the title insurer
          to the
          extent required by the policy) and which assumption agreement has been
          delivered
          to the Trustee;

         

        (vii) The
          Mortgaged Property is insured against loss by fire and hazards of extended
          coverage (excluding earthquake insurance) in an amount which is at least
          equal
          to the lesser of (i) the amount necessary to compensate for any damage
          or loss
          to the improvements which are a part of such property on a replacement
          cost
          basis or (ii) the outstanding principal balance of the Mortgage Loan. If
          the
          Mortgaged Property is in an area identified on a flood hazard map or flood
          insurance rate map issued by the Federal Emergency Management Agency as having
          special flood hazards (and such flood insurance has been made available),
          a
          flood insurance policy meeting the requirements of the current guidelines
          of the
          Federal Insurance Administration is in effect. All such insurance policies
          contain a standard mortgagee clause naming the originator of the Mortgage
          Loan,
          its successors and assigns as mortgagee and the Seller has not engaged
          in any
          act or omission which would impair the coverage of any such insurance policies.
          Except as may be limited by applicable law, the Mortgage obligates the
          Mortgagor
          thereunder to maintain all such insurance at the Mortgagor’s cost and expense,
          and on the Mortgagor’s failure to do so, authorizes the holder of the Mortgage
          to maintain such insurance at Mortgagor’s cost and expense and to seek
          reimbursement therefor from the Mortgagor;

         

        (viii) Each
          Mortgage Loan and the related Prepayment Charge, if any, complied in all
          material respects with any and all requirements of any federal, state or
          local
          law including, without limitation, usury, truth in lending, anti-predatory
          lending, real estate settlement procedures, consumer credit protection,
          equal
          credit opportunity, fair housing or disclosure laws applicable to the
          origination and servicing of the Mortgage Loans and the consummation of
          the
          transactions contemplated hereby will not involve the violation of any
          such
          laws;

         

        (ix) Except
          as
          otherwise set forth in the Mortgage File, the Mortgage has not been satisfied,
          cancelled, subordinated (other than with respect to second lien Mortgage
          Loans,
          the subordination to the first lien) or rescinded, in whole or in part,
          and the
          Mortgaged Property has not been released from the lien of the Mortgage,
          in whole
          or in part, nor has any instrument been executed that would effect any
          such
          satisfaction, cancellation, subordination, rescission or release;

         

        (x) The
          Mortgage was recorded or was submitted for recording in accordance with
          all
          applicable laws and is a valid, existing and enforceable first or second
          lien on
          the Mortgaged Property including all improvements on the Mortgaged
          Property;

         

        (xi) The
          Mortgage Note and the related Mortgage are genuine and each is the legal,
          valid
          and binding obligation of the maker thereof, insured under the related
          title
          policy, and enforceable in accordance with its terms, except to the extent
          that
          the enforceability thereof may be limited by a bankruptcy, insolvency or
          reorganization;

         

        (xii) The
          Seller is the sole legal, beneficial and equitable owner of the Mortgage
          Note
          and the Mortgage and has the full right to convey, transfer and sell the
          Mortgage Loan to the Purchaser free and clear of any encumbrance, equity,
          lien
          (other than with respect to second lien Mortgage Loans, the subordination
          to the
          related first lien mortgage loan), pledge, charge, claim or security interest
          and immediately upon the sale, assignment and endorsement of the Mortgage
          Loans
          from the Seller to the Purchaser, the Purchaser shall have good and indefeasible
          title to and be the sole legal owner of the Mortgage Loans subject only
          to any
          encumbrance, equity, lien, pledge, charge, claim or security interest arising
          out of the Purchaser’s actions;

         

        (xiii) Each
          Mortgage Loan is covered by a valid and binding American Land Title Association
          lender’s title insurance policy or other generally acceptable form of policy of
          insurance acceptable to Fannie Mae or Freddie Mac, in either case, issued
          by a
          title insurer qualified to do business in the jurisdiction where the Mortgaged
          Property is located. Except as set forth in the related Mortgage File,
          no claims
          have been filed under such lender’s title insurance policy, and the Seller has
          not done, by act or omission, anything that would impair the coverage of
          the
          lender’s title insurance policy;

         

        (xiv) Except
          with respect to the Delinquent/Plan Mortgage Loans, there is no material
          default, breach, violation or event of acceleration existing under the
          Mortgage
          or the Mortgage Note and no event which, with the passage of time or with
          notice
          and the expiration of any grace or cure period, would constitute a material
          default, breach, violation or event of acceleration, and the Seller has
          not, nor
          has its predecessors, waived any material default, breach, violation or
          event of
          acceleration;

         

        (xv) Except
          as
          set forth in the related Mortgage Files, there are no mechanics’ or similar
          liens or claims which have been filed for work, labor or material provided
          to
          the related Mortgaged Property prior to the origination of the Mortgage
          Loan
          which are or may be liens prior to, or equal or coordinate with, the lien
          of the
          related Mortgage, except as may be disclosed in the related title
          policy;

         

        (xvi) Approximately
          98.23% of the Mortgage Notes are payable on the first day of each month
          in
          monthly payments which (a) in the case of a fixed rate Mortgage Loans are
          sufficient to amortize the Mortgage Loan fully by the stated maturity date
          over
          an original term from commencement of amortization to not more than 30.5
          years,
          (b) in the case of adjustable rate Mortgage Loans, are changed on each
          adjustment date, and in any case are sufficient to amortize the Mortgage
          Loan
          fully by the stated maturity date over an original term from commencement
          of
          amortization to not more than 40 years and (c) in the case of balloon Mortgage
          Loans, are based on a set amortization schedule of not more than 30 years,
          as
          set forth in the related Mortgage Note, and include a final monthly payment
          substantially greater than the preceding monthly payment which is sufficient
          to
          amortize the remaining principal balance of such balloon Mortgage Loan.
          Other
          than with respect to Simple Interest Mortgage Loans, interest is calculated
          on
          each Mortgage Loan on a 30/360 basis. Interest is payable on each Mortgage
          Loan
          in arrears. Except for 6.49% of the Mortgage Loans (measured by the aggregate
          principal balance of the Mortgage Loans as of the Cut-off Date), no Mortgage
          Loan is a balloon loan. No Mortgage Loan permits negative
          amortization;

         

        (xvii) The
          servicing practices used in connection with the servicing of the Mortgage
          Loans
          have been in all respects reasonable and customary in the mortgage servicing
          industry of like mortgage loan servicers, servicing similar sub prime mortgage
          loans originated in the same jurisdiction as the Mortgaged
          Property;

         

        (xviii) At
          the
          time of origination of the Mortgage Loan there was no proceeding pending
          for the
          total or partial condemnation of the Mortgaged Property and, as of the
          date such
          Mortgage Loan was purchased by the Purchaser, to the best of the Purchaser’s
          knowledge there is no proceeding pending for the total or partial condemnation
          of the Mortgaged Property;

         

        (xix) The
          Mortgage and related Mortgage Note contain customary and enforceable provisions
          such as to render the rights and remedies of the holder thereof adequate
          for the
          realization against the Mortgaged Property of the benefits of the security
          provided thereby, including, (a) in the case of a Mortgage designated as
          a deed
          of trust, by trustee’s sale, and (b) otherwise by judicial
          foreclosure;

         

        (xx) The
          Mortgage Note is not and has not been secured by any collateral except
          the lien
          of the related Mortgage referred to in subsection (x) above;

         

        (xxi) In
          the
          event the Mortgage constitutes a deed of trust, a trustee, duly qualified
          under
          applicable law to serve as such, has been properly designated and currently
          so
          serves and is named in the Mortgage, and no fees or expenses are or will
          become
          payable by the Seller to the trustee under the deed of trust, except in
          connection with a trustee’s sale after default by the Mortgagor;

         

        (xxii) At
          the
          time of origination and except as otherwise set forth in the related Mortgage
          Files, the Mortgage Loan is not subject to any valid right of rescission,
          set-off, counterclaim or defense, including without limitation the defense
          of
          usury, nor will the operation of any of the terms of the Mortgage Note
          or the
          Mortgage, or the exercise of any right thereunder, render either the Mortgage
          Note or the Mortgage unenforceable, in whole or in part, or subject to
          any such
          right of rescission, set-off, counterclaim or defense, including without
          limitation the defense of usury, and no such right of rescission, set-off,
          counterclaim or defense has been asserted with respect thereto;

         

        (xxiii) To
          the
          best of the Seller’s knowledge, the Mortgaged Property is free of material
          damage and in good repair, excepting therefrom any Mortgage Loan subject
          to an
          escrow withhold as shown on the Closing Schedule;

         

        (xxiv) All
          of
          the improvements which were included in determining the appraised value
          of the
          Mortgaged Property lie wholly within the Mortgaged Property’s boundary lines and
          no improvements on adjoining properties encroach upon the Mortgaged Property,
          excepting therefrom: (i) any encroachment insured against in the lender’s title
          insurance policy identified in subsection (xiii), (ii) any encroachment
          generally acceptable to sub prime mortgage loan originators doing business
          in
          the same jurisdiction as the Mortgaged Property, and (iii) any encroachment
          which does not materially interfere with the benefits of the security intended
          to be provided by such Mortgage;

         

        (xxv) All
          parties to the Mortgage Note had the legal capacity to execute the Mortgage
          Note
          and the Mortgage, and the Mortgage Note and the Mortgage have been duly
          executed
          by such parties;

         

        (xxvi) To
          the
          best of the Seller’s knowledge, at the time of origination of the Mortgage Loan,
          no appraised improvement located on or being part of the Mortgaged Property
          was
          in violation of any applicable zoning law or regulation and all inspections,
          licenses and certificates required in connection with the origination of
          any
          Mortgage Loan with respect to the occupancy of the Mortgaged Property,
          have been
          made or obtained from the appropriate authorities;

         

        (xxvii) No
          Mortgagor has notified the Seller of any relief requested or allowed under
          the
          Servicemembers Civil Relief Act;

         

        (xxviii) All
          parties which have held an interest in the Mortgage Loan are (or during
          the
          period in which they held and disposed of such interest, were) (1) in compliance
          with any and all applicable licensing requirements of the state wherein
          the
          Mortgaged Property is located, (2) organized under the laws of such state,
          (3)
          qualified to do business in such state, (4) a federal savings and loan
          association or national bank, (5) not doing business in such state, or
          (6)
          exempt from the applicable licensing requirements of such state;

         

        (xxix) Except
          as
          otherwise disclosed by the Seller, the Mortgage File contains an appraisal
          of
          the related Mortgaged Property which was made prior to the approval of
          the
          Mortgage Loan by a qualified appraiser, duly appointed by the related originator
          and was made in accordance with the Financial Institutions Reform, Recovery,
          and
          Enforcement Act of 1989 and the Uniform Standards of Professional Appraisal
          Practice;

         

        (xxx) Except
          as
          may otherwise be limited by applicable law, the Mortgage contains an enforceable
          provision for the acceleration of the payment of the unpaid principal balance
          of
          the Mortgage Loan in the event that the Mortgaged Property is sold or
          transferred without the prior written consent of the Mortgagee
          thereunder;

         

        (xxxi) The
          Mortgage Loan does not contain any provision which would constitute a “buydown”
provision and pursuant to which Monthly Payments are paid or partially
          paid with
          funds deposited in a separate account established by the related originator,
          the
          Mortgagor or anyone on behalf of the Mortgagor, or paid by any source other
          than
          the Mortgagor. The Mortgage Loan is not a “graduated payment mortgage loan” and
          the Mortgage loan does not have a shared appreciation or other contingent
          interest feature;

         

        (xxxii) To
          the
          best of the Seller’s knowledge there is no action or proceeding directly
          involving the Mortgaged Property presently pending in which compliance
          with any
          environmental law, rule or regulation is at issue and the Seller has received
          no
          notice of any condition at the Mortgaged Property which is reasonably likely
          to
          give rise to an action or proceeding in which compliance with any environmental
          law, rule or regulation is at issue;

         

        (xxxiii) Each
          Mortgage Loan is an obligation which is principally secured by an interest
          in
          real property within the meaning of Treasury Regulation section
          1.860G-2(a);

         

        (xxxiv) Each
          Mortgage Loan is directly secured by a first or second lien on, and consists
          of
          vacant land or a single parcel of, real property with a detached one-to-four
          family residence erected thereon, a townhouse or an individual condominium
          unit
          in a condominium project, an individual unit in a planned unit development
          (“PUD”). No residence or dwelling is a mobile home or a manufactured dwelling
          unless it is an Acceptable Manufactured Dwelling (as defined herein). An
          “Acceptable Manufactured Dwelling” is a manufactured dwelling, which is
          permanently affixed to a foundation and treated as “real estate” under
          applicable law. No Mortgaged Property is used for commercial purposes.
          Mortgaged
          Properties which contain a home office shall not be considered as being
          used for
          commercial purposes as long as the Mortgaged Property has not been altered
          for
          commercial purposes and is not storing any chemicals or raw materials other
          than
          those commonly used for homeowner repair, maintenance and/or household
          purposes;

         

        (xxxv) The
          Mortgage Interest Rate with respect to the Adjustable Rate Mortgage Loans
          is
          subject to adjustment at the time and in the amounts as are set forth in
          the
          related Mortgage Note;

         

        (xxxvi) No
          Mortgage Loan contains a provision whereby the Mortgagor can convert an
          Adjustable Rate Mortgage Loan into a Fixed Rate Mortgage Loan;

         

        (xxxvii) No
          Mortgage Loan is subject to the Home Ownership and Equity Protection Act
          of 1994
          or any comparable law and no Mortgage Loan is classified and/or defined
          as “high
          cost”, “covered” (excluding home loans defined as “covered home loans” in the
          New Jersey Home Ownership Security Act of 2002 that were originated between
          November 26, 2003 and July 7, 2004) or “predatory” loan under any other federal,
          state or local law (or a similarly classified loan using different terminology
          under a law imposing heightened regulatory scrutiny or additional legal
          liability for residential mortgage loans having high interest rates, points
          and/or fees) including, but not limited to, the States of Georgia or North
          Carolina, or the City of New York;

         

        (xxxviii) There
          is
          no Mortgage Loan that was originated or modified on or after October 1,
          2002 and
          before March 7, 2003, which is secured by property located in the State
          of
          Georgia. There is no such Mortgage Loan underlying the Certificate that
          was
          originated on or after March 7, 2003, which is a “high cost home loan” as
          defined under the Georgia Fair Lending Act;

         

        (xxxix) With
          respect to any Mortgage Loan that is secured by a second lien on the related
          Mortgaged Property, either (a) no consent for the Mortgage Loan is required
          by
          the holder of any related senior lien or (b) such consent has been obtained
          and
          is contained in the Mortgage File;

         

        (xl) With
          respect to a Mortgage Loan which is a second lien, as of the date hereof,
          the
          Seller has not received a notice of default of a senior lien on the related
          Mortgaged Property which has not been cured;

         

        (xli) No
          Mortgage Loan is a “High-Cost Home Loan” as defined in the New Jersey Home
          Ownership Act effective November 27, 2003 (N.J.S.A. 46:10B-22 et
          seq.);

         

        (xlii) No
          Mortgage Loan is a “High-Cost Home Loan” as defined in the Massachusetts
          Predatory Home Loan Practices Act, effective November 7, 2004 (Mass. Ann.
          Laws
          Ch. 183C)

         

        (xliii) No
          Mortgage Loan is a “High-Cost Home Loan” as defined in the New Mexico Home Loan
          Protection Act effective January 1, 2004 (N.M. Stat. Ann. §§ 58-21A-1 et
          seq.);

         

        (xliv) No
          Mortgage Loan is a “High-Risk Home Loan” as defined in the Illinois High-Risk
          Home Loan Act effective January 1, 2004 (815 Ill. Comp. Stat. 137/1 et
          seq.);

         

        (xlv) There
          is
          no Mortgage Loan that (a) is secured by property located in the State of
          Kentucky; (b) was originated on or after June 24, 2003, and (c) which is
          a “high
          cost home loan” as defined under Kentucky State Statute KRS 360.100, effective
          as of June 24, 2003;

         

        (xlvi) No
          Mortgage Loan is a High Cost Loan or Covered Loan, as applicable (as such
          terms
          are defined in the then current Standard & Poor’s LEVELS® Glossary which is
          now Version 5.6(d) Revised, Appendix E (attached hereto as Exhibit 2));
          

         

        (xlvii) No
          Loan
          secured by property located in the State of Indiana is a high-cost home
          loan as
          defined in the Indiana High Cost Home Loan Act; 

         

        (xlviii) There
          is
          no Mortgage Loan that (a) is secured by property located in the State of
          Arkansas, (b) has a note date on or after July 16, 2003, and (c) which
          is a
“high cost home loan” as defined under the Arkansas Home Loan Protection Act,
          effective as of July 16, 2003; and

         

        (xlix) No
          proceeds from any Mortgage Loan were used to purchase single premium credit
          insurance policies as part of the origination of, or as a condition to
          closing,
          such Mortgage Loan.

         

        SECTION
          7. Repurchase
          Obligation for Defective Documentation and for Breach of Representation
          and
          Warranty.

         

        (a) The
          representations and warranties contained in Section 6 shall not be impaired
          by
          any review and examination of loan files or other documents evidencing
          or
          relating to the Mortgage Loans or any failure on the part of the Seller
          or the
          Purchaser to review or examine such documents and shall inure to the benefit
          of
          any assignee, transferee or designee of the Purchaser, including the Trustee
          for
          the benefit of the Certificateholders. With respect to the representations
          and
          warranties contained herein as to which the Seller has no knowledge, if
          it is
          discovered that the substance of any such representation and warranty was
          inaccurate as of the date such representation and warranty was made or
          deemed to
          be made, and such inaccuracy materially and adversely affects the value
          of the
          related Mortgage Loan or the interest therein of the Purchaser or the
          Purchaser’s assignee, transferee or designee, then notwithstanding the lack of
          knowledge by the Seller with respect to the substance of such representation
          and
          warranty being inaccurate at the time the representation and warranty was
          made,
          the Seller shall take such action described in the following paragraph
          in
          respect of such Mortgage Loan. 

         

        Except
          with respect to the defects set forth on Schedule
          A
          attached
          hereto, upon discovery by the Seller, the Purchaser or any assignee, transferee
          or designee of the Purchaser of any materially defective document in, or
          that
          any material document was not transferred by the Seller, as listed on a
          Custodian’s preliminary exception report, as described in the related Custodial
          Agreement, as part of any Mortgage File, or of a breach of any of the
          representations and warranties contained in Section 6 that materially and
          adversely affects the value of any Mortgage Loan or the interest therein
          of the
          Purchaser or the Purchaser’s assignee, transferee or designee, the party
          discovering such breach shall give prompt written notice to the Seller.
          Within
          60 days of its discovery or its receipt of notice of any such missing
          documentation that was not transferred by the Seller as described above,
          or of
          materially defective documentation, or any such breach of a representation
          and
          warranty, the Seller promptly shall deliver such missing document or cure
          such
          defect or breach in all material respects or, in the event the Seller cannot
          deliver such missing document or cannot cure such defect or breach, the
          Seller
          shall, within 90 days of its discovery or receipt of notice of any such
          missing
          or materially defective documentation or of any such breach of a representation
          and warranty, either (i) repurchase the affected Mortgage Loan at the Purchase
          Price (as such term is defined in the Pooling and Servicing Agreement)
          or (ii)
          pursuant to the provisions of the Pooling and Servicing Agreement, cause
          the
          removal of such Mortgage Loan from the Trust Fund and substitute one or
          more
          Qualified Substitute Mortgage Loans. The Seller shall amend the Closing
          Schedule
          to reflect the withdrawal of such Mortgage Loan from the terms of this
          Agreement
          and the Pooling and Servicing Agreement. The Seller shall deliver to the
          Purchaser such amended Closing Schedule and shall deliver such other documents
          as are required by this Agreement or the Pooling and Servicing Agreement
          within
          five (5) days of any such amendment. Any repurchase pursuant to this Section
          7(a) shall be accomplished by transfer to an account designated by the
          Purchaser
          of the amount of the Purchase Price in accordance with Section 2.03 of
          the
          Pooling and Servicing Agreement. Any repurchase required by this Section
          shall
          be made in a manner consistent with Section 2.03 of the Pooling and Servicing
          Agreement.

         

        (b) If
          the
          representation made by the Seller in Section 5(xiii) is breached, the Seller
          shall not have the right or obligation to cure, substitute or repurchase
          the
          affected Mortgage Loan but shall remit to the related Servicer for deposit
          in
          the related Collection Account or the Custodial Account, as applicable,
          prior to
          the next succeeding Servicer Remittance Date, the amount of the Prepayment
          Charge indicated on the applicable part of the Closing Schedule to be due
          from
          the Mortgagor in the circumstances less any amount collected and remitted
          to
          such Servicer for deposit into the related Collection Account or the Custodial
          Account.

         

        (c) It
          is
          understood and agreed that the obligations of the Seller set forth in this
          Section 7 to cure or repurchase a defective Mortgage Loan (and to make
          payments
          pursuant to Section 7(b)) constitute the sole remedies of the Purchaser
          against
          the Seller respecting a missing document or a breach of the representations
          and
          warranties contained in Section 6.

         

        SECTION
          8. Closing;
          Payment for the Mortgage Loans. The
          closing of the purchase and sale of the Mortgage Loans, shall be held at
          the New
          York City office of Thacher Proffitt & Wood llp
          at 10:00
          a.m. New York City time on the Closing Date.

         

        The
          closing shall be subject to each of the following conditions:

         

        (a) All
          of
          the representations and warranties of the Seller under this Agreement shall
          be
          true and correct in all material respects as of the date as of which they
          are
          made and no event shall have occurred which, with notice or the passage
          of time,
          would constitute a default under this Agreement;

         

        (b) The
          Purchaser shall have received, or the attorneys of the Purchaser shall
          have
          received in escrow (to be released from escrow at the time of closing),
          all
          closing documents as specified in Section 9 of this Agreement, in such
          forms as
          are agreed upon and acceptable to the Purchaser, duly executed by all
          signatories other than the Purchaser as required pursuant to the respective
          terms thereof;

         

        (c) The
          Seller shall have delivered or caused to be delivered and released to the
          Purchaser or to its designee, all documents (including without limitation,
          the
          Mortgage Loans) required to be so delivered by the Purchaser pursuant to
          Section
          2.01 of the Pooling and Servicing Agreement; and

         

        (d) All
          other
          terms and conditions of this Agreement and the Pooling and Servicing Agreement
          shall have been complied with.

         

        Subject
          to the foregoing conditions, the Purchaser shall deliver or cause to be
          delivered to the Seller on the Closing Date, against delivery and release
          by the
          Seller to the Trustee of all documents required pursuant to the Pooling
          and
          Servicing Agreement, the consideration for the Mortgage Loans as specified
          in
          Section 3 of this Agreement.

         

        SECTION
          9. Closing
          Documents.
          Without
          limiting the generality of Section 8 hereof, the closing shall be subject
          to
          delivery of each of the following documents:

         

        (a) An
          Officers’ Certificate of the Seller, dated the Closing Date, upon which the
          Purchaser and DBSI may rely with respect to certain facts regarding the
          sale of
          the Mortgage Loans by the Seller to the Purchaser;

         

        (b) An
          Opinion of Counsel of the Seller, dated the Closing Date and addressed
          to the
          Purchaser and DBSI;

         

        (c) Such
          opinions of counsel as the Rating Agencies or the Trustee may request in
          connection with the sale of the Mortgage Loans by the Seller to the Purchaser
          or
          the Seller’s execution and delivery of, or performance under, this Agreement;
          and

         

        (d) Such
          further information, certificates, opinions and documents as the Purchaser
          or
          DBSI may reasonably request.

         

        SECTION
          10. Costs.
          The
          Seller shall pay (or shall reimburse the Purchaser or any other Person
          to the
          extent that the Purchaser or such other Person shall pay) all costs and
          expenses
          incurred in connection with the transfer and delivery of the Mortgage Loans,
          including without limitation, fees for title policy endorsements and
          continuations, the fees and expenses of the Seller’s accountants and attorneys,
          the costs and expenses incurred in connection with producing any Servicer’s loan
          loss, foreclosure and delinquency experience, and the costs and expenses
          incurred in connection with obtaining the documents referred to in Sections
          9(a), 9(b) and 9(c), the costs and expenses of printing (or otherwise
          reproducing) and delivering this Agreement, the Pooling and Servicing Agreement,
          the Certificates, the prospectus and prospectus supplement, and any private
          placement memorandum relating to the Certificates and other related documents,
          the initial fees, costs and expenses of the Trustee, the fees and expenses
          of
          the Purchaser’s counsel in connection with the preparation of all documents
          relating to the securitization of the Mortgage Loans, the filing fee charged
          by
          the Commission for registration of the Certificates and the fees charged
          by any
          rating agency to rate the Certificates.  All other costs and expenses
          in connection with the transactions contemplated hereunder shall be borne
          by the
          party incurring such expense.

         

        SECTION
          11. Servicing.
          Each
          Mortgage Loan will be master serviced by the Master Servicer under the
          Pooling
          and Servicing Agreement and serviced by the related Servicer on behalf
          of the
          Trust under the Pooling and Servicing Agreement or under the SPS Servicing
          Agreement, as applicable, and the Seller has represented to the Purchaser
          that
          the Mortgage Loans are not subject to any other servicing agreements with
          third
          parties. It is understood and agreed between the Seller and the Purchaser
          that
          the Mortgage Loans are to be delivered free and clear of any servicing
          agreements (other than the SPS Servicing Agreement, which will be assigned
          to
          the Purchaser as of the date hereof). Neither the Purchaser nor any affiliate
          of
          the Purchaser is servicing the Mortgage Loans under any such servicing
          agreement
          and, accordingly, neither the Purchaser nor any affiliate of the Purchaser
          is
          entitled to receive any fee for releasing the Mortgage Loans from any such
          servicing agreement. The Seller shall arrange for the orderly transfer
          of such
          servicing to the related Servicers. For so long as the Master Servicer
          master
          services a Mortgage Loan and the related Servicers service such Mortgage
          Loan,
          the Master Servicer shall be entitled to the Master Servicing Fee and the
          Servicer shall be entitled to the servicing fee with respect to such Mortgage
          Loan and such other payments as provided for under the terms of the Pooling
          and
          Servicing Agreement and the SPS Servicing Agreement, as applicable.

         

        SECTION
          12. Mandatory
          Delivery; Grant of Security Interest.  The
          sale and delivery on the Closing Date of the Mortgage Loans (exclusive
          of the
          Servicing Rights) described on the Closing Schedule in accordance with
          the terms
          and conditions of this Agreement is mandatory.  It is specifically
          understood and agreed that each Mortgage Loan is unique and identifiable
          on the
          date hereof and that an award of money damages would be insufficient to
          compensate the Purchaser for the losses and damages incurred by the Purchaser
          in
          the event of the Seller’s failure to deliver the Mortgage Loans on or before the
          Closing Date.  The Seller hereby grants to the Purchaser a lien on and
          a continuing security interest in the Seller’s interest in each Mortgage Loan
          and each document and instrument evidencing each such Mortgage Loan to
          secure
          the performance by the Seller of its obligation hereunder, and the Seller
          agrees
          that it holds such Mortgage Loans in custody for the Purchaser, subject
          to the
          Purchaser’s (i) right, prior to the Closing Date, to reject any Mortgage Loan to
          the extent permitted by this Agreement and (ii) obligation to deliver or
          cause
          to be delivered the consideration for the Mortgage Loans pursuant to Section
          8
          hereof.  Any Mortgage Loans rejected by the Purchaser shall
          concurrently therewith be released from the security interest created
          hereby.  All rights and remedies of the Purchaser under this Agreement
          are distinct from, and cumulative with, any other rights or remedies under
          this
          Agreement or afforded by law or equity and all such rights and remedies
          may be
          exercised concurrently, independently or successively.

         

        Notwithstanding
          the foregoing, if on the Closing Date, each of the conditions set forth
          in
          Section 8 hereof shall have been satisfied and the Purchaser shall not
          have paid
          or caused to be paid the Purchase Price, or any such condition shall not
          have
          been waived or satisfied and the Purchaser determines not to pay or cause
          to be
          paid the Purchase Price, the Purchaser shall immediately effect the redelivery
          of the Mortgage Loans, if delivery to the Purchaser has occurred, and the
          security interest created by this Section 12 shall be deemed to have been
          released.

         

        SECTION
          13. Notices.  All
          demands, notices and communications hereunder shall be in writing and shall
          be
          deemed to have been duly given if personally delivered to or mailed by
          registered mail, postage prepaid, or transmitted by fax and, receipt of
          which is
          confirmed by telephone, if to the Purchaser, addressed to the Purchaser
          at 6525
          Morrison Boulevard, Suite 318, Charlotte, North Carolina 28211, fax: (704)
          365-1362, Attention: Juliana Johnson, or such other address as may hereafter
          be
          furnished to the Seller in writing by the Purchaser; and if to the Seller,
          addressed to the Seller at 60 Wall Street, New York, New York 10005, fax:
          (212)
          250-2740, Attention:  Michael Commaroto, or to such other address as
          the Seller may designate in writing to the Purchaser.

         

        SECTION
          14. Severability
          of Provisions.  Any
          part, provision, representation or warranty of this Agreement that is prohibited
          or that is held to be void or unenforceable shall be ineffective to the
          extent
          of such prohibition or unenforceability without invalidating the remaining
          provisions hereof.  Any part, provision, representation or warranty of
          this Agreement that is prohibited or unenforceable or is held to be void
          or
          unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
          to the extent of such prohibition or unenforceability without invalidating
          the
          remaining provisions hereof, and any such prohibition or unenforceability
          in any
          jurisdiction as to any Mortgage Loan shall not invalidate or render
          unenforceable such provision in any other jurisdiction.  To the extent
          permitted by applicable law, the parties hereto waive any provision of
          law which
          prohibits or renders void or unenforceable any provision hereof.

         

        SECTION
          15. Agreement
          of Parties.  The
          Seller and the Purchaser each agree to execute and deliver such instruments
          and
          take such actions as either of the others may, from time to time, reasonably
          request in order to effectuate the purpose and to carry out the terms of
          this
          Agreement and the Pooling and Servicing Agreement.

         

        SECTION
          16. Survival.  The
          Seller agrees that the representations, warranties and agreements made
          by it
          herein and in any certificate or other instrument delivered pursuant hereto
          shall be deemed to be relied upon by the Purchaser, notwithstanding any
          investigation heretofore or hereafter made by the Purchaser or on its behalf,
          and that the representations, warranties and agreements made by the Seller
          herein or in any such certificate or other instrument shall survive the
          delivery
          of and payment for the Mortgage Loans and shall continue in full force
          and
          effect, notwithstanding any restrictive or qualified endorsement on the
          Mortgage
          Notes and notwithstanding subsequent termination of this Agreement, the
          Pooling
          and Servicing Agreement or the Trust Fund.

         

        SECTION
          17. GOVERNING
          LAW.  THIS
          AGREEMENT AND THE RIGHTS, DUTIES, OBLIGATIONS AND RESPONSIBILITIES OF THE
          PARTIES HERETO SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
          LAWS
          (EXCLUDING THE CHOICE OF LAW PROVISIONS) AND DECISIONS OF THE STATE OF
          NEW
          YORK.  THE
          PARTIES HERETO INTEND THAT THE PROVISIONS OF SECTION 5-1401 OF THE NEW
          YORK
          GENERAL OBLIGATIONS LAW SHALL APPLY TO THIS AGREEMENT.

         

        SECTION
          18. Miscellaneous.
          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.  This Agreement shall inure to
          the benefit of and be binding upon the parties hereto and their respective
          successors and assigns.  This Agreement supersedes all prior
          agreements and understandings relating to the subject matter
          hereof.  Neither this Agreement nor any term hereof may be changed,
          waived, discharged or terminated orally, but only by an instrument in writing
          signed by the party against whom enforcement of the change, waiver, discharge
          or
          termination is sought.  The headings in this Agreement are for
          purposes of reference only and shall not limit or otherwise affect the
          meaning
          hereof.

         

        It
          is the
          express intent of the parties hereto that the conveyance of the Mortgage
          Loans
          (exclusive of the Servicing Rights) by the Seller to the Purchaser as provided
          in Section 4 hereof be, and be construed as, a sale of the Mortgage Loans
          by the
          Seller to the Purchaser and not as a pledge of the Mortgage Loans by the
          Seller
          to the Purchaser to secure a debt or other obligation of the Seller. However,
          in
          the event that, notwithstanding the aforementioned intent of the parties,
          the
          Mortgage Loans are held to be property of the Seller, then (a) it is the
          express
          intent of the parties that such conveyance be deemed a pledge of the Mortgage
          Loans by the Seller to the Purchaser to secure a debt or other obligation
          of the
          Seller and (b) (1) 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; (2) the conveyance provided for in Section 4 hereof shall
          be
          deemed to be a grant by the Seller to the Purchaser of a security interest
          in
          all of the Seller’s right, title and interest in and to the Mortgage Loans and
          all amounts payable to the holders of the Mortgage Loans in accordance
          with the
          terms thereof and all proceeds of the conversion, voluntary or involuntary,
          of
          the foregoing into cash, instruments, securities or other property, including
          without limitation all amounts, other than investment earnings, from time
          to
          time held or invested in a Collection Account or the Custodial Account
          whether
          in the form of cash, instruments, securities or other property; (3) the
          possession by the Purchaser or its agent of Mortgage Notes, the related
          Mortgages and such other items of property that constitute instruments,
          money,
          negotiable documents or chattel paper shall be deemed to be “possession by the
          secured party” for purposes of perfecting the security interest pursuant to
          Section 9-305 of the New York Uniform Commercial Code; and (4) notifications
          to
          persons holding such property and acknowledgments, receipts or confirmations
          from persons holding such property shall be deemed notifications to, or
          acknowledgments, receipts or confirmations from, financial intermediaries,
          bailees or agents (as applicable) of the Purchaser for the purpose of perfecting
          such security interest under applicable law. Any assignment of the interest
          of
          the Purchaser pursuant to Section 4(d) hereof shall also be deemed to be
          an
          assignment of any security interest created hereby. The Seller and the
          Purchaser
          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 interest of first priority under applicable law and
          will be
          maintained as such throughout the term of this Agreement and the Pooling
          and
          Servicing Agreement.

         

        SECTION
          19. Third
          Party Beneficiary.  The
          parties hereto acknowledge and agree that DBSI and each of its respective
          successors and assigns shall have all the rights of a third-party beneficiary
          in
          respect of Section 12 of this Agreement and shall be entitled to rely upon
          and
          directly enforce the provisions of Section 12 of this Agreement.

         

        [signature
          page to follow]

         

        

          

        

        
          
            1 Please
              contact the Mortgage Loan Seller for this
              information.

          

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        IN
          WITNESS WHEREOF, the Purchaser and the Seller have caused their names to
          be
          signed by their respective officers thereunto duly authorized as of the
          date
          first above written.

         

        

          
            	 	DB
                    STRUCTURED PRODUCTS, INC.
	 	 	 
	 	
                    By:

                  	 
	 	
                    Name:

                  	 
	 	
                    Title:

                  	 

          

          
            
              	 	 	 
	 	
                      By:

                    	 
	 	
                      Name:

                    	 
	 	
                      Title:

                    	 

            

            

              

                
                  	 	ACE
                          SECURITIES CORP.
	 	 	 
	 	
                          By:

                        	 
	 	
                          Name:

                        	 
	 	
                          Title:

                        	 

                

                
                  
                    	 	 	 
	 	
                            By:

                          	 
	 	
                            Name:

                          	 
	 	
                            Title:

                          	 

                  

                  

                    
                      
                        
                        

                      

                      
                        
                        

                        
                          

                        

                      

                      
                        
                        

                      

                    

                

              

            

          

        

        

        EXHIBIT
          1

         

        Loan
          #:
          _______

        Borrower:_____  

         

        LOST
          NOTE
          AFFIDAVIT

         

        I,
          as
          _____________________ of ____________________, a _______________ am authorized
          to make this Affidavit on behalf of __________________ (the “Seller”). In
          connection with the administration of the Mortgage Loans held by
          ______________________, a _______________ [corporation] as Seller on behalf
          of
          ____________________ (the “Purchaser”), _______________________ (the
“Deponent”), being duly sworn, deposes and says that:

         

        1. The
          Seller’s address is:     

        
          	 	 	 	 
	 	 	 	 
	 	 	 	 

        

         

        2. The
          Seller previously delivered to the Purchaser a signed Initial Certification
          with
          respect to such Mortgage and/or Assignment of Mortgage;

         

        3. Such
          Mortgage Note and/or Assignment of Mortgage was assigned or sold to the
          Purchaser by __________________, a    
          pursuant
          to the terms and provisions of a Mortgage Loan Purchase Agreement dated
          as of
          _____________;

         

        4. Such
          Mortgage Note and/or Assignment of Mortgage is not outstanding pursuant
          to a
          request for release of Documents;

         

        5. Aforesaid
          Mortgage Note and/or Assignment of Mortgage (the “Original”) has been
          lost;

         

        6. Deponent
          has made or caused to be made a diligent search for the Original and has
          been
          unable to find or recover same;

         

        7. The
          Seller was the Seller of the Original at the time of the loss; and

         

        8. Deponent
          agrees that, if said Original should ever come into Seller’s possession, custody
          or power, Seller will immediately and without consideration surrender the
          Original to the Purchaser.

         

        9. Attached
          hereto is a true and correct copy of (i) the Note, endorsed in blank by
          the
          Mortgagee and (ii) the Mortgage or Deed of Trust (strike one) which secures
          the
          Note, which Mortgage or Deed of Trust is recorded in the county where the
          property is located.

         

        10. Deponent
          hereby agrees that the Seller (a) shall indemnify and hold harmless the
          Purchaser, its successors and assigns, against any loss, liability or damage,
          including reasonable attorney’s fees, resulting from the unavailability of any
          Notes, including but not limited to any loss, liability or damage arising
          from
          (i) any false statement contained in this Affidavit, (ii) any claim of
          any party
          that purchased a mortgage loan evidenced by the Lost Note or any interest
          in
          such mortgage loan, (iii) any claim of any borrower with respect to the
          existence of terms of a mortgage loan evidenced by the Lost Note on the
          related
          property to the fact that the mortgage loan is not evidenced by an original
          note
          and (iv) the issuance of a new instrument in lieu thereof (items (i) through
          (iv) above hereinafter referred to as the “Losses”) and (b) if required by any
          Rating Agency in connection with placing such Lost Note into a Pass-Through
          Transfer, shall obtain a surety from an insurer acceptable to the applicable
          Rating Agency to cover any Losses with respect to such Lost Note.

         

        11. This
          Affidavit is intended to be relied upon by the Purchaser, its successors
          and
          assigns. Seller represents and warrants that is has the authority to perform
          its
          obligations under this Affidavit of Lost Note.

         

        Executed
          this _ day of _______, 200_.

         

        

          
            	 	 	 
	 	 	 	 
	 	
                    By:

                  	 	 
	 	
                    Name:

                  	 	 
	 	
                    Title:

                  	 	 

          

           

        

         

        On
          this
          __ day of ______, 200_, before me appeared ______________________ to me
          personally known, who being duly sworn did say that he is the
          _______________________ of ____________________, a ______________________
          and
          that said Affidavit of Lost Note was signed and sealed on behalf of such
          corporation and said acknowledged this instrument to be the free act and
          deed of
          said entity.

         

        Signature:

         

        [Seal]

         

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        EXHIBIT
          2

        APPENDIX
          E - Standard & Poor’s Predatory Lending Categories

         

        Standard
          & Poor’s has categorized loans governed by anti-predatory lending laws in
          the Jurisdictions listed below into three categories based upon a combination
          of
          factors that include (a) the risk exposure associated with the assignee
          liability and (b) the tests and thresholds set forth in those laws. Note
          that
          certain loans classified by the relevant statute as Covered are included
          in
          Standard & Poor’s High Cost Loan Category because they included thresholds
          and tests that are typical of what is generally considered High Cost by
          the
          industry. 

         

        Standard
          & Poor’s High Cost Loan Categorization

         

        

          
            	
                    State/Jurisdiction

                  	
                    Name
                      of Anti-Predatory Lending Law/Effective Date

                  	
                    Category
                      under Applicable Anti-Predatory Lending Law

                  
	
                    Arkansas
                      

                  	
                    Arkansas
                      Home Loan Protection Act, Ark. Code Ann. §§ 23-53-101 et
                      seq.
                      

                    Effective
                      July 16, 2003 

                  	
                    High
                      Cost Home Loan 

                  
	
                    Cleveland
                      Heights, OH 

                  	
                    Ordinance
                      No. 72-2003 (PSH), Mun. Code §§ 757.01 et
                      seq.
                      

                    Effective
                      June 2, 2003 

                  	
                    Covered
                      Loan 

                  
	
                    Colorado
                      

                  	
                    Consumer
                      Equity Protection, Colo. Stat. Ann. §§ 5-3.5-101 et
                      seq.
                      

                    Effective
                      for covered loans offered or entered into on or after January
                      1, 2003.
                      Other provisions of the Act took effect on June 7, 2002 

                  	
                    Covered
                      Loan 

                  
	
                    Connecticut
                      

                  	
                    Connecticut
                      Abusive Home Loan Lending Practices Act, Conn. Gen. Stat. §§ 36a-746
                      et
                      seq.
                      

                    Effective
                      October 1, 2001 

                  	
                    High
                      Cost Home Loan 

                  
	
                    District
                      of Columbia 

                  	
                    Home
                      Loan Protection Act, D.C. Code §§ 26-1151.01 et
                      seq.
                      

                    Effective
                      for loans closed on or after January 28, 2003 

                  	
                    Covered
                      Loan 

                  
	
                    Florida
                      

                  	
                    Fair
                      Lending Act, Fla. Stat. Ann. §§ 494.0078 et
                      seq.
                      

                    Effective
                      October 2, 2002 

                  	
                    High
                      Cost Home Loan 

                  
	
                    Georgia
                      (Oct. 1, 2002 - Mar. 6, 2003) 

                  	
                    Georgia
                      Fair Lending Act, Ga. Code Ann. §§ 7-6A-1 et
                      seq.
                      

                    Effective
                      October 1, 2002 - March 6, 2003

                  	
                    High
                      Cost Home Loan 

                  

          

        

        

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        Standard
          & Poor’s High Cost Loan Categorization

         

        
          	
                  State/Jurisdiction

                	
                  Name
                    of Anti-Predatory Lending Law/Effective Date

                	
                  Category
                    under Applicable Anti-Predatory Lending Law

                
	
                  Georgia
                    as amended (Mar. 7, 2003 - current) 

                	
                  Georgia
                    Fair Lending Act, Ga. Code Ann. §§ 7-6A-1 et
                    seq.
                    

                  Effective
                    for loans closed on or after March 7, 2003 

                	
                  High
                    Cost Home Loan 

                
	
                  HOEPA
                    Section 32 

                	
                  Home
                    Ownership and Equity Protection Act of 1994, 15 U.S.C. § 1639, 12 C.F.R.
                    §§ 226.32 and 226.34 

                  Effective
                    October 1, 1995, amendments October 1, 2002 

                	
                  High
                    Cost Loan 

                
	
                  Illinois
                    

                	
                  High
                    Risk Home Loan Act, Ill. Comp. Stat. tit. 815, §§ 137/5 et
                    seq.
                    

                  Effective
                    January 1, 2004 (prior to this date, regulations under Residential
                    Mortgage License Act effective from May 14, 2001) 

                	
                  High
                    Risk Home Loan 

                
	
                  Kansas
                    

                	
                  Consumer
                    Credit Code, Kan. Stat. Ann. §§ 16a-1-101 et
                    seq.
                    

                  Sections
                    16a-1-301 and 16a-3-207 became effective April 14, 1999; Section
                    16a-3-308a became effective July 1, 1999 

                	
                  High
                    Loan to Value Consumer Loan (id.
                    §
                    16a-3-207) and; 

                
	
                  High
                    APR Consumer Loan (id.
                    §
                    16a-3-308a) 

                
	
                  Kentucky
                    

                	
                  2003
                    KY H.B. 287 - High Cost Home Loan Act, Ky. Rev. Stat. §§ 360.100
                    et
                    seq.
                    

                  Effective
                    June 24, 2003 

                	
                  High
                    Cost Home Loan 

                
	
                  Maine
                    

                	
                  Truth
                    in Lending, Me. Rev. Stat. tit. 9-A, §§ 8-101 et
                    seq.
                    

                  Effective
                    September 29, 1995 and as amended from time to time 

                	
                  High
                    Rate High Fee Mortgage 

                
	
                  Massachusetts
                    

                	
                  Part
                    40 and Part 32, 209 C.M.R. §§ 32.00 et
                    seq.
                    and 209 C.M.R. §§ 40.01 et
                    seq.
                    

                  Effective
                    March 22, 2001 and amended from time to time

                	
                  High
                    Cost Home Loan 

                

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        Sandard
          & Poor’s High Cost Loan Categorization

         

        

          
            	
                    State/Jurisdiction

                  	
                    Name
                      of Anti-Predatory Lending Law/Effective Date

                  	
                    Category
                      under Applicable Anti-Predatory Lending Law

                  
	
                    Nevada
                      

                  	
                    Assembly
                      Bill No. 284, Nev. Rev. Stat. §§ 598D.010 et
                      seq.
                      

                    Effective
                      October 1, 2003 

                  	
                    Home
                      Loan 

                  
	
                    New
                      Jersey 

                  	
                    New
                      Jersey Home Ownership Security Act of 2002, N.J. Rev. Stat.
§§ 46:10B-22
                      et
                      seq.
                      

                    Effective
                      for loans closed on or after November 27, 2003 

                  	
                    High
                      Cost Home Loan 

                  
	
                    New
                      Mexico 

                  	
                    Home
                      Loan Protection Act, N.M. Rev. Stat. §§ 58-21A-1 et
                      seq.
                      

                    Effective
                      as of January 1, 2004; Revised as of February 26, 2004 

                  	
                    High
                      Cost Home Loan 

                  
	
                    New
                      York 

                  	
                    N.Y.
                      Banking Law Article 6-l 

                    Effective
                      for applications made on or after April 1, 2003 

                  	
                    High
                      Cost Home Loan 

                  
	
                    North
                      Carolina 

                  	
                    Restrictions
                      and Limitations on High Cost Home Loans, N.C. Gen. Stat. §§ 24-1.1E
                      et
                      seq.
                      

                    Effective
                      July 1, 2000; amended October 1, 2003 (adding open-end lines
                      of credit)
                      

                  	
                    High
                      Cost Home Loan 

                  
	
                    Ohio
                      

                  	
                    H.B.
                      386 (codified in various sections of the Ohio Code), Ohio Rev.
                      Code Ann.
                      §§ 1349.25 et
                      seq.
                      

                    Effective
                      May 24, 2002 

                  	
                    Covered
                      Loan 

                  
	
                    Oklahoma
                      

                  	
                    Consumer
                      Credit Code (codified in various sections of Title 14A) 

                    Effective
                      July 1, 2000; amended effective January 1, 2004 

                  	
                    Subsection
                      10 Mortgage 

                  
	
                    South
                      Carolina 

                  	
                    South
                      Carolina High Cost and Consumer Home Loans Act, S.C. Code Ann.
§§ 37-23-10
                      et
                      seq.
                      

                    Effective
                      for loans taken on or after January 1, 2004

                  	
                    High
                      Cost Home Loan 

                  
	
                    West
                      Virginia

                  	
                    West
                      Virginia Residential Mortgage Lender, Broker and Servicer Act,
                      W. Va. Code
                      Ann. §§ 31-17-1 et
                      seq.
                      

                    Effective
                      June 5, 2002

                  	
                    West
                      Virginia Mortgage Loan Act Loan

                  

          

          

             

            
              
                
                

              

              
                
                

                
                  

                

              

              
                
                

              

            

          

        

         

         

        Standard
          & Poor’s Covered Loan Categorization 

         

        

          
            	
                    State/Jurisdiction

                  	
                    Name
                      of Anti-Predatory Lending Law/Effective Date

                  	
                    Category
                      under Applicable Anti-Predatory Lending Law

                  
	
                    Georgia
                      (Oct. 1, 2002 - Mar. 6, 2003) 

                  	
                    Georgia
                      Fair Lending Act, Ga. Code Ann. §§ 7-6A-1 et
                      seq.
                      

                    Effective
                      October 1, 2002 - March 6, 2003 

                  	
                    Covered
                      Loan 

                  
	
                    New
                      Jersey 

                  	
                    New
                      Jersey Home Ownership Security Act of 2002, N.J. Rev. Stat.
§§ 46:10B-22
                      et
                      seq.
                      

                    Effective
                      November 27, 2003 - July 5, 2004 

                  	
                    Covered
                      Home Loan 

                  

          

        

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

        

        Standard
          & Poor’s Home Loan Categorization

        

        
          	
                  State/Jurisdiction

                	
                  Name
                    of Anti-Predatory Lending Law/Effective Date

                	
                  Category
                    under Applicable Anti-Predatory Lending Law

                
	
                  Georgia
                    (Oct. 1, 2002 - Mar. 6, 2003) 

                	
                  Georgia
                    Fair Lending Act, Ga. Code Ann. §§ 7-6A-1 et
                    seq.
                    

                  Effective
                    October 1, 2002 - March 6, 2003 

                	
                  Home
                    Loan 

                
	
                  New
                    Jersey 

                	
                  New
                    Jersey Home Ownership Security Act of 2002, N.J. Rev. Stat. §§ 46:10B-22
                    et
                    seq.
                    

                  Effective
                    for loans closed on or after November 27, 2003

                	
                  Home
                    Loan 

                
	
                  New
                    Mexico 

                	
                  Home
                    Loan Protection Act, N.M. Rev. Stat. §§ 58-21A-1 et
                    seq.
                    

                  Effective
                    as of January 1, 2004; Revised as of February 26, 2004 

                	
                  Home
                    Loan 

                
	
                  North
                    Carolina 

                	
                  Restrictions
                    and Limitations on High Cost Home Loans, N.C. Gen. Stat. §§ 24-1.1E
                    et
                    seq.
                    

                  Effective
                    July 1, 2000; amended October 1, 2003 (adding open-end lines
                    of credit)
                    

                	
                  Consumer
                    Home Loan 

                
	
                  South
                    Carolina 

                	
                  South
                    Carolina High Cost and Consumer Home Loans Act, S.C. Code Ann.
§§ 37-23-10
                    et
                    seq.
                    

                  Effective
                    for loans taken on or after January 1, 2004 

                	
                  Consumer
                    Home Loan 

                

        

         

        Revised
          4/18/06

        

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

        SCHEDULE
          A

        DEFECTS
          SCHEDULE

        

        

        [PROVIDED
          UPON REQUEST]

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        SCHEDULE
          B

        

        NONE.

        

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        SCHEDULE
          C

        

        [PROVIDED
          UPON REQUEST]

         

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EXHIBIT
        G

      

      FORM
        10-D, FORM 8-K AND FORM 10-K

      REPORTING
        RESPONSIBILITY

      

      As
        to
        each item described below, the entity indicated as the Responsible Party
        shall
        be primarily responsible for reporting the information to the party identified
        as responsible for preparing the Securities Exchange Act Reports pursuant
        to
        Section 5.06(a)(ii). 

      

      Under
        Item 1 of Form 10-D: a) items marked “monthly statement” are required to be
        included in the periodic Distribution Date statement under Section 5.02,
        provided by the Securities Administrator based on information received from
        the
        Master Servicer; and b) items marked “Form 10-D report” are required to be in
        the Form 10-D report but not the monthly statement, provided by the party
        indicated. Information under all other Items of Form 10-D is to be included
        in
        the Form 10-D report.

      

      
        	
                Form

              	
                Item

              	
                Description

              	
                Servicers

              	
                Master
                  Servicer

              	
                Securities
                  Administrator

              	
                Custodian

              	
                Trustee

              	
                Depositor

              	
                Sponsor

              
	
                10-D

              	
                Must
                  be filed within 15 days of the distribution date for the asset-backed
                  securities.

              	 	 	 	 
	 	
                1

              	
                Distribution
                  and Pool Performance Information

              	 	 	 	 	 	 	 
	
                Item
                  1121(a) - Distribution and Pool Performance
                  Information

              	 	 	 	 	 	 	 
	
                (1)
                  Any applicable record dates, accrual dates, determination dates
                  for
                  calculating distributions and actual distribution dates for the
                  distribution period.

              	 	 	
                X

                 

                (monthly
                  Statement)

              	 	 	 	 
	
                (2)
                  Cash flows received and the sources thereof for distributions,
                  fees and
                  expenses.

              	 	 	
                X

                 

                (monthly
                  Statement)

              	 	 	 	 
	
                (3)
                  Calculated amounts and distribution of the flow of funds for the
                  period
                  itemized by type and priority of payment, including:

              	 	 	
                X

                 

                (monthly
                  Statement)

              	 	 	 	 
	
                (i)
                  Fees or expenses accrued and paid, with an identification of the
                  general
                  purpose of such fees and the party receiving such fees or
                  expenses.

              	 	 	
                X

                 

                (monthly
                  Statement)

              	 	 	 	 
	
                (ii)
                  Payments accrued or paid with respect to enhancement or other support
                  identified in Item 1114 of Regulation AB (such as insurance premiums
                  or
                  other enhancement maintenance fees), with an identification of
                  the general
                  purpose of such payments and the party receiving such
                  payments.

              	 	 	
                X

                 

                (monthly
                  Statement)

              	 	 	 	 
	
                (iii)
                  Principal, interest and other distributions accrued and paid on
                  the
                  asset-backed securities by type and by class or series and any
                  principal
                  or interest shortfalls or carryovers.

              	 	 	
                X

                 

                (monthly
                  Statement)

              	 	 	 	 
	
                (iv)
                  The amount of excess cash flow or excess spread and the disposition
                  of
                  excess cash flow.

              	 	 	
                X

                 

                (monthly
                  Statement)

              	 	 	 	 
	
                (4)
                  Beginning and ending principal balances of the asset-backed
                  securities.

              	 	 	
                X

                 

                (monthly
                  Statement)

              	 	 	 	 
	
                (5)
                  Interest rates applicable to the pool assets and the asset-backed
                  securities, as applicable. Consider providing interest rate information
                  for pool assets in appropriate distributional groups or incremental
                  ranges.

              	 	 	
                X

                 

                (monthly
                  Statement)

              	 	 	 	 
	
                (6)
                  Beginning and ending balances of transaction accounts, such as
                  reserve
                  accounts, and material account activity during the period.

              	 	 	
                X

                 

                (monthly
                  Statement)

              	 	 	 	 
	
                (7)
                  Any amounts drawn on any credit enhancement or other support identified
                  in
                  Item 1114 of Regulation AB, as applicable, and the amount of coverage
                  remaining under any such enhancement, if known and
                  applicable.

              	 	 	
                X

                 

                (monthly
                  Statement)

              	 	 	 	 
	
                (8)
                  Number and amount of pool assets at the beginning and ending of
                  each
                  period, and updated pool composition information, such as weighted
                  average
                  coupon, weighted average remaining term, pool factors and prepayment
                  amounts.

              	 	 	
                X

                 

                (monthly
                  Statement)

              	 	 	
                Updated
                  pool composition information fields to be as specified by Depositor
                  from
                  time to time

              	 
	
                (9)
                  Delinquency and loss information for the period.

              	
                X

              	
                X

              	
                X

                 

                (monthly
                  Statement)

              	 	 	 	 
	
                In
                  addition, describe any material changes to the information specified
                  in
                  Item 1100(b)(5) of Regulation AB regarding the pool assets.
                  (methodology)

              	
                X

              	
                X

              	 	 	 	 	 
	
                (10)
                  Information on the amount, terms and general purpose of any advances
                  made
                  or reimbursed during the period, including the general use of funds
                  advanced and the general source of funds for
                  reimbursements.

              	
                X

              	
                X

              	
                X

                 

                (monthly
                  Statement)

              	 	 	 	 
	
                (11)
                  Any material modifications, extensions or waivers to pool asset
                  terms,
                  fees, penalties or payments during the distribution period or that
                  have
                  cumulatively become material over time.

              	
                X

              	
                X

              	
                X

                 

                (monthly
                  Statement)

              	 	 	 	 
	
                (12)
                  Material breaches of pool asset representations or warranties or
                  transaction covenants.

              	
                X

              	
                X

              	 	 	 	
                X

              	 
	
                (13)
                  Information on ratio, coverage or other tests used for determining
                  any
                  early amortization, liquidation or other performance trigger and
                  whether
                  the trigger was met.

              	 	 	
                X

                 

                (monthly
                  Statement)

              	 	 	 	 
	
                (14)
                  Information regarding any new issuance of asset-backed securities
                  backed
                  by the same asset pool, any pool asset changes (other than in connection
                  with a pool asset converting into cash in accordance with its terms),
                  such
                  as additions or removals in connection with a prefunding or revolving
                  period and pool asset substitutions and repurchases (and purchase
                  rates,
                  if applicable), and cash flows available for future purchases,
                  such as the
                  balances of any prefunding or revolving accounts, if
                  applicable.

              	
                X

              	
                X

              	
                X

              	 	 	 	
                X

              
	
                Disclose
                  any material changes in the solicitation, credit-granting, underwriting,
                  origination, acquisition or pool selection criteria or procedures,
                  as
                  applicable, used to originate, acquire or select the new pool
                  assets.

              	 	 	 	 	 	 	
                X

              
	
                Item
                  1121(b) - Pre-Funding or Revolving Period Information

                 

                Updated
                  pool information as required under Item 1121(b).

              	 	 	 	 	 	 	
                X

              
	
                2

              	
                Legal
                  Proceedings

              	 	 	 	 	 	 	 
	
                Item
                  1117 - Legal proceedings pending against the following entities,
                  or their
                  respective property, that is material to Certificateholders, including
                  proceedings known to be contemplated by governmental
                  authorities:

              	 	 	 	 	 	 	 
	
                Sponsor
                  (Seller)

              	 	 	 	 	 	 	
                X

              
	
                Depositor

              	 	 	 	 	 	
                X

              	 
	
                Trustee

              	 	 	 	 	
                X

              	 	 
	
                Issuing
                  entity

              	 	 	 	 	 	
                X

              	 
	
                Master
                  Servicer, affiliated Servicer, other Servicer servicing 20% or
                  more of
                  pool assets at time of report, other material servicers

              	
                X

              	
                X

              	 	 	 	 	 
	
                Securities
                  Administrator

              	 	 	
                X

              	 	 	 	 
	
                Originator
                  of 20% or more of pool assets as of the Cut-off Date

              	 	 	 	 	 	
                X

              	 
	
                Custodian

              	 	 	 	
                X

              	 	 	 
	
                3

              	
                Sales
                  of Securities and Use of Proceeds

              	 	 	 	 	 	 	 
	
                Information
                  from Item 2(a) of Part II of Form 10-Q:

                 

                With
                  respect to any sale of securities by the sponsor, depositor or
                  issuing
                  entity, that are backed by the same asset pool or are otherwise
                  issued by
                  the issuing entity, whether or not registered, provide the sales
                  and use
                  of proceeds information in Item 701 of Regulation S-K. Pricing
                  information
                  can be omitted if securities were not registered.

              	 	 	 	 	 	
                X

              	 
	
                4

              	
                Defaults
                  Upon Senior Securities

              	 	 	 	 	 	 	 
	
                Information
                  from Item 3 of Part II of Form 10-Q:

                 

                Report
                  the occurrence of any Event of Default (after expiration of any
                  grace
                  period and provision of any required notice)

              	 	 	
                X

              	 	
                X

              	 	 
	
                5

              	
                Submission
                  of Matters to a Vote of Security Holders

              	 	 	 	 	 	 	 
	
                Information
                  from Item 4 of Part II of Form 10-Q

              	 	 	
                X

              	 	
                X

              	 	 
	
                6

              	
                Significant
                  Obligors of Pool Assets

              	 	 	 	 	 	 	 
	
                Item
                  1112(b) - Significant
                  Obligor Financial Information*

              	 	 	 	 	 	
                X

              	
                X

              
	
                *This
                  information need only be reported on the Form 10-D for the distribution
                  period in which updated information is required pursuant to the
                  Item.

              	 	 	 	 	 	 	 
	
                7

              	
                Significant
                  Enhancement Provider Information

              	 	 	 	 	 	 	 
	
                Item
                  1114(b)(2) - Credit Enhancement Provider Financial
                  Information*

              	 	 	 	 	 	 	 
	
                Determining
                  applicable disclosure threshold

              	 	 	
                X

              	 	 	 	 
	
                Requesting
                  required financial information or effecting incorporation by
                  reference

              	 	 	
                X

              	 	 	 	 
	
                Item
                  1115(b) - Derivative Counterparty Financial
                  Information*

              	 	 	 	 	 	 	 
	
                Determining
                  current maximum probable exposure

              	 	 	 	 	 	
                X

              	 
	
                Determining
                  current significance percentage

              	 	 	
                X

              	 	 	 	 
	
                Requesting
                  required financial information or effecting incorporation by
                  reference

              	 	 	
                X

              	 	 	 	 
	
                *This
                  information need only be reported on the Form 10-D for the distribution
                  period in which updated information is required pursuant to the
                  Items.

              	 	 	 	 	 	 	 
	
                8

              	
                Other
                  Information

              	 	 	 	 	 	 	 
	
                Disclose
                  any information required to be reported on Form 8-K during the
                  period
                  covered by the Form 10-D but not reported

              	
                The
                  Responsible Party for the applicable Form 8-K item as indicated
                  below.

              
	
                9

              	
                Exhibits

              	 	 	 	 	 	 	 
	
                Distribution
                  report

              	 	 	
                X

              	 	 	 	 
	
                Exhibits
                  required by Item 601 of Regulation S-K, such as material
                  agreements

              	 	 	 	 	 	
                X

              	 
	
                8-K

              	
                Must
                  be filed within four business days of an event reportable on Form
                  8-K.

              	 	 	 	 
	
                1.01

              	
                Entry
                  into a Material Definitive Agreement

              	 	 	 	 	 	 	 
	
                Disclosure
                  is required regarding entry into or amendment of any definitive
                  agreement
                  that is material to the securitization, even if depositor is not
                  a party.
                  

                 

                Examples:
                  servicing agreement, custodial agreement.

                 

                Note:
                  disclosure not required as to definitive agreements that are fully
                  disclosed in the prospectus

              	
                X

              	
                X

              	
                X
                  (if Master Servicer is not a party)

              	 	
                X
                  (if Master Servicer is not a party)

              	
                X
                  (if Master Servicer is not a party)

              	
                X
                  (if Master Servicer is not a party)

              
	
                1.02

              	
                Termination
                  of a Material Definitive Agreement

              	
                X

              	
                X

              	
                X
                  (if Master Servicer is not a party)

              	 	
                X
                  (if Master Servicer is not a party)

              	
                X
                  (if Master Servicer is not a party)

              	
                X
                  (if Master Servicer is not a party)

              
	
                Disclosure
                  is required regarding termination of any definitive agreement that
                  is
                  material to the securitization (other than expiration in accordance
                  with
                  its terms), even if depositor is not a party. 

                 

                 

                Examples:
                  servicing agreement, custodial agreement.

              	 	 	 	 	 	 	 
	
                1.03

              	
                Bankruptcy
                  or Receivership

              	 	 	 	 	 	 	 
	
                Disclosure
                  is required regarding the bankruptcy or receivership, if known
                  to the
                  Master Servicer, with respect to any of the following: 

                 

                Sponsor
                  (Seller), Depositor, Master Servicer, affiliated Servicer, other
                  Servicer
                  servicing 20% or more of pool assets at time of report, other material
                  servicers, Certificate Administrator, Trustee, significant obligor,
                  credit
                  enhancer (10% or more), derivatives counterparty,
                  Custodian

              	
                X

              	
                X

              	
                X

              	
                X

              	
                X 

              	
                X 

              	
                X

              
	
                2.04

              	
                Triggering
                  Events that Accelerate or Increase a Direct Financial Obligation
                  or an
                  Obligation under an Off-Balance Sheet Arrangement

              	 	 	 	 	 	 	 
	
                Includes
                  an early amortization, performance trigger or other event, including
                  event
                  of default, that would materially alter the payment priority/distribution
                  of cash flows/amortization schedule.

                 

                Disclosure
                  will be made of events other than waterfall triggers which are
                  disclosed
                  in the 5.02 statement

              	 	
                X

              	
                X

              	 	 	 	 
	
                3.03

              	
                Material
                  Modification to Rights of Security Holders

              	 	 	 	 	 	 	 
	
                Disclosure
                  is required of any material modification to documents defining
                  the rights
                  of Certificateholders, including the Pooling and Servicing
                  Agreement

              	 	
                X

              	
                X

              	 	
                X

              	
                X

              	 
	
                5.03

              	
                Amendments
                  to Articles of Incorporation or Bylaws; Change in Fiscal
                  Year

              	 	 	 	 	 	 	 
	
                Disclosure
                  is required of any amendment “to the governing documents of the issuing
                  entity”

              	 	 	 	 	
                X

              	
                X

              	 
	
                5.06

              	
                Change
                  in Shell Company Status

              	 	 	 	 	 	 	 
	
                [Not
                  applicable to ABS issuers]

              	 	 	 	 	 	
                X

              	 
	
                6.01

              	
                ABS
                  Informational and Computational Material

              	 	 	 	 	 	 	 
	
                [Not
                  included in reports to be filed under Section 3.18]

              	 	 	 	 	 	
                X

              	 
	
                6.02

              	
                Change
                  of Servicer or Trustee

              	 	 	 	 	 	 	 
	
                Requires
                  disclosure of any removal, replacement, substitution or addition
                  of any
                  master servicer, affiliated servicer, other servicer servicing
                  10% or more
                  of pool assets at time of report, other material servicers, certificate
                  administrator or trustee. 

              	
                X

              	
                X

              	
                X

              	 	
                X

              	
                X

              	 
	 	
                Reg
                  AB disclosure about any new servicer (from entity appointing new
                  servicer)
                  or trustee (from Depositor) is also required.

              	
                X

              	 	 	 	
                X

              	
                X

              	 
	
                6.03

              	
                Change
                  in Credit Enhancement or Other External Support

              	 	 	 	 	 	 	 
	
                Covers
                  termination of any enhancement in manner other than by its terms,
                  the
                  addition of an enhancement, or a material change in the enhancement
                  provided. Applies to external credit enhancements as well as derivatives.
                  

              	 	 	
                X

              	 	
                X

              	
                X

              	 
	 	
                Reg
                  AB disclosure about any new enhancement provider is also
                  required

              	 	 	 	 	 	
                X

              	 
	
                6.04

              	
                Failure
                  to Make a Required Distribution

              	 	 	
                X

              	 	
                X

              	 	 
	
                6.05

              	
                Securities
                  Act Updating Disclosure

              	 	 	 	 	 	 	 
	
                If
                  any material pool characteristic differs by 5% or more at the time
                  of
                  issuance of the securities from the description in the final prospectus,
                  provide updated Reg AB disclosure about the actual asset
                  pool.

              	 	 	 	 	 	
                X

              	
                 

              
	
                If
                  there are any new servicers or originators required to be disclosed
                  under
                  Regulation AB as a result of the foregoing, provide the information
                  called
                  for in Items 1108 and 1110 respectively.

              	 	 	 	 	 	
                X

              	 
	
                7.01

              	
                Regulation
                  FD Disclosure

              	
                X

              	
                X

              	
                X

              	 	
                X

              	
                X

              	
                X

              
	
                8.01

              	
                Other
                  Events

              	 	 	 	 	 	 	 
	
                Any
                  event, with respect to which information is not otherwise called
                  for in
                  Form 8-K, that the registrant deems of importance to security
                  holders.

              	 	 	 	 	 	
                X

              	 
	
                9.01

              	
                Financial
                  Statements and Exhibits

              	
                The
                  Responsible Party applicable to reportable event.

              
	
                10-K

              	
                Must
                  be filed within 90 days of the fiscal year end for the
                  registrant.

              	 	 	 	 
	
                9B

              	
                Other
                  Information

              	 	 	 	 	 	 	 
	 	 	
                Disclose
                  any information required to be reported on Form 8-K during the
                  fourth
                  quarter covered by the Form 10-K but not reported

              	
                The
                  Responsible Party for the applicable Form 8-K as indicated
                  above.

              
	 	
                15

              	
                Exhibits
                  and Financial Statement Schedules

              	 	 	 	 	 	 	 
	
                Item
                  1112(b) - Significant
                  Obligor Financial Information

              	 	 	 	 	 	
                X

              	
                X

              
	
                Item
                  1114(b)(2) - Credit Enhancement Provider Financial
                  Information

              	 	 	 	 	 	 	 
	
                Determining
                  applicable disclosure threshold

              	 	 	
                X

              	 	 	 	 
	
                Requesting
                  required financial information or effecting incorporation by
                  reference

              	 	 	
                X

              	 	 	 	 
	
                Item
                  1115(b) - Derivative Counterparty Financial
                  Information

              	 	 	 	 	 	 	 
	
                Determining
                  current maximum probable exposure

              	 	 	 	 	 	
                X

              	 
	 	 	
                Determining
                  current significance percentage

              	 	 	
                X

              	 	 	 	 
	
                Requesting
                  required financial information or effecting incorporation by
                  reference

              	 	 	
                X

              	 	 	 	 
	
                Item
                  1117 - Legal proceedings pending against the following entities,
                  or their
                  respective property, that is material to Certificateholders, including
                  proceedings known to be contemplated by governmental
                  authorities:

              	 	 	 	 	 	 	 
	
                Sponsor
                  (Seller)

              	 	 	 	 	 	 	
                X

              
	
                Depositor

              	 	 	 	 	 	
                X

              	 
	
                Trustee

              	 	 	 	 	
                X

              	 	 
	
                Issuing
                  entity

              	 	 	 	 	 	
                X

              	 
	
                Master
                  Servicer, affiliated Servicer, other Servicer servicing 20% or
                  more of
                  pool assets at time of report, other material servicers

              	
                X

              	
                X

              	 	 	 	 	 
	
                Securities
                  Administrator

              	 	 	
                X

              	 	 	 	 
	
                Originator
                  of 20% or more of pool assets as of the Cut-off Date

              	 	 	 	 	 	
                X

              	
                X

              
	
                Custodian

              	 	 	 	
                X

              	 	 	 
	
                Item
                  1119 - Affiliations and relationships between the following entities,
                  or
                  their respective affiliates, that are material to
                  Certificateholders:

              	 	 	 	 	 	 	 
	
                Sponsor
                  (Seller)

              	 	 	 	 	 	 	
                X

              
	
                Depositor

              	 	 	 	 	 	
                X

              	 
	
                Trustee

              	 	 	 	 	
                X
                  (with respect to Item 1119(a) affiliations only)

              	 	 
	
                Master
                  Servicer, affiliated Servicer, other Servicer servicing 20% or
                  more of
                  pool assets at time of report, other material servicers

              	
                X

              	
                X

              	 	 	 	 	 
	
                Securities
                  Administrator

              	 	 	
                X

              	 	 	 	 
	
                Originator

              	 	 	 	 	 	
                X

              	
                X

              
	
                Custodian

              	 	 	 	
                X
                  (with respect to affiliations only)

              	 	 	 
	
                Credit
                  Enhancer/Support Provider

              	 	 	 	 	 	
                X

              	
                X

              
	
                Significant
                  Obligor

              	 	 	 	 	 	
                X

              	
                X

              
	
                Item
                  1122 - Assessment of Compliance with Servicing
                  Criteria

              	
                X

              	
                X

              	
                X

              	
                X

              	 	 	 
	
                Item
                  1123 - Servicer Compliance Statement

              	
                X

              	
                X

              	 	 	 	 	 

      

      

      

      EXHIBIT
        H

       

      ADDITIONAL
        DISCLOSURE NOTIFICATION

       

      **SENT
        VIA FAX TO [_XXX)XXX-XXXX] AND VIA EMAIL TO [_________________] AND VIA
        OVERNIGHT MAIL TO THE ADDRESS IMMEDIATELY BELOW:

       

      Wells
        Fargo Bank, National Association as Securities Administrator

      9062
        Old
        Annapolis Road

      Columbia,
        Maryland 21045

      Fax:
        (410) 715-2380

      E-mail:
        cts.sec.notifications@wellsfargo.com

       

      Attn:
        Corporate Trust Services - ACE 2006-SD2 - SEC REPORT PROCESSING

       

      ACE
        Securities Corp.

      6525
        Morrison Boulevard, Suite 318

      Charlotte,
        North Carolina 28211

      Fax:
        (704) 365-1362)

      Attn:
        Juliana Johnson

       

      RE:
        **
        Additional Form [10-D][10-K][8-K] Disclosure** Required

       

      Ladies
        and Gentlemen:

       

      In
        accordance with Section [__] of the Pooling and Servicing Agreement, dated
        as of [________] [__], 2006 among [_____________], as [______], [_____________],
        as [______], [_____________], as [______] and [_____________], as [______],
        the
        undersigned, as [______], hereby notifies you that certain events have come
        to
        our attention that [will] [may] need to be disclosed on Form
        [10-D][10-K][8-K].

       

      Description
        of Additional Form [10-D][10-K][8-K] Disclosure:

       

      

       

      

       

      List
        of any Attachments hereto to be included in the Additional Form
        [10-D][10-K][8-K] Disclosure: 

       

      

       

      Any
        inquiries related to this notification should be directed to [_____________],
        phone number: [______]; email address: [_________________].

       

      [NAME
        OF
        PARTY],

      as
        [role]

      

       

      By:
        _____________________

        Name:

        Title:

       

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EXHIBIT
        I

      

      ASSIGNMENT,
        ASSUMPTION AND RECOGNITION AGREEMENT AND SERVICING AGREEMENT

      
 

      
        ASSIGNMENT,
          ASSUMPTION AND RECOGNITION AGREEMENT

         

        This
          Assignment, Assumption and Recognition Agreement (this “AAR Agreement”) is made
          and entered into as of June 26, 2006 (the “Closing Date”), among DB Structured
          Products, Inc., having an address at 60 Wall Street, New York, New York
          10005
          (the “Assignor”), ACE Securities Corp., having an address at 6525 Morrison
          Boulevard, Suite 318, Charlotte, North Carolina 28211 (the “Assignee”), and
          Select Portfolio Servicing, Inc., having an address at 3815 South West
          Temple,
          Salt Lake City, Utah 84115-4412 (the “Company”).

         

        In
          consideration of the mutual promises contained herein, the parties hereto
          agree
          that the residential mortgage loans listed on Attachment
          1
          annexed
          hereto (the “Assigned Loans”), which are now serviced by the Company on behalf
          of the Assignor and its successors and assigns pursuant to the terms of
          the
          Servicing Agreement, dated as of May 31, 2006, between the Assignor and
          the
          Company (the “Servicing Agreement”), shall be sold by the Assignor to the
          Assignee pursuant to the Mortgage Loan Purchase Agreement dated as of June
          26,
          2006 (the “MLPA”) between the Assignor and the Assignee and subject to the terms
          of this AAR Agreement. The Assignee intends to transfer all right, title
          and
          interest in and to the Assigned Loans to HSBC Bank USA, National Association,
          as
          trustee (the “Trustee”) for the holders of ACE Securities Corp. Home Equity Loan
          Trust, Series 2006-SD2 Asset Backed Pass-Through Certificates (the
“Certificateholders”) pursuant to the Pooling and Servicing Agreement, dated as
          of May 31, 2006 (the “Pooling and Servicing Agreement”) among the Assignee, as
          depositor, the Trustee, Ocwen Loan Servicing, LLC as a servicer, Wells
          Fargo
          Bank, N.A. as a servicer, and Wells Fargo Bank, N.A., as master servicer
          (the
“Master Servicer”) and securities administrator. Capitalized terms used herein
          but not defined shall have the meanings ascribed to them in the Servicing
          Agreement.

         

        Assignment
          and Assumption

         

        1.  Assignor
          hereby grants, transfers and assigns to Assignee all of the right, title
          and
          interest of Assignor in, to and under the Servicing Agreement as it relates
          to
          the Assigned Loans from and after the Closing Date. Assignor specifically
          reserves and does not assign to Assignee any right, title and interest
          in, to or
          under any mortgage loans subject to the Servicing Agreement other than
          the
          Assigned Loans.

         

        Representations,
          Warranties and Covenants

         

        2.  Assignor
          warrants and represents to Assignee and Company as of the Closing
          Date:

         

        (a)  Attached
          hereto as Attachment
          2
          is a
          true and accurate copy of the Servicing Agreement, which agreement is in
          full
          force and effect as of the Closing Date and the provisions of which have
          not
          been waived, amended or modified in any respect, nor has any notice of
          termination been given thereunder;

         

        (b)  Assignor
          was the lawful owner of the Assigned Loans with full right to transfer
          the
          Assigned Loans and any and all of its interests, rights and obligations
          under
          the Servicing Agreement as they relate to the Assigned Loans, free and
          clear
          from any and all claims and encumbrances; and upon the transfer of the
          Assigned
          Loans to Assignee under the MLPA, Assignee shall have good title to each
          and
          every Assigned Loan, as well as any and all of Assignor’s interests, rights and
          obligations under the Servicing Agreement as they relate to the Assigned
          Loans,
          free and clear of any and all liens, claims and encumbrances;

         

        (c)  Assignor
          is duly organized, validly existing and in good standing under the laws
          of the
          jurisdiction of its incorporation, and has all requisite power and authority
          to
          acquire, own and sell the Assigned Loans;

         

        (d)  Assignor
          has full corporate power and authority to execute, deliver and perform
          its
          obligations under this AAR Agreement, and to consummate the transactions
          set
          forth herein. The consummation of the transactions contemplated by this
          AAR
          Agreement is in the ordinary course of Assignor’s business and will not conflict
          with, or result in a breach of, any of the terms, conditions or provisions
          of
          Assignor’s certificate of incorporation and by-laws or any legal restriction, or
          any material agreement or instrument to which Assignor is now a party or
          by
          which it is bound, or result in the violation of any law, rule, regulation,
          order, judgment or decree to which Assignor or its property is subject.
          The
          execution, delivery and performance by Assignor of this AAR Agreement and
          the
          consummation by it of the transactions contemplated hereby, have been duly
          authorized by all necessary corporate action on the part of Assignor. This
          AAR
          Agreement has been duly executed and delivered by Assignor and, upon the
          due
          authorization, execution and delivery by Assignee and Company, will constitute
          the valid and legally binding obligation of Assignor enforceable against
          Assignor in accordance with its terms except as enforceability may be limited
          by
          bankruptcy, reorganization, insolvency, moratorium or other similar laws
          now or
          hereafter in effect relating to creditors’ rights generally, and by general
          principles of equity regardless of whether enforceability is considered
          in a
          proceeding in equity or at law; and

         

        (e)  No
          consent, approval, order or authorization of, or declaration, filing or
          registration with, any governmental entity is required to be obtained or
          made by
          Assignor in connection with the execution, delivery or performance by Assignor
          of this AAR Agreement, or the consummation by it of the transactions
          contemplated hereby. Neither Assignor nor anyone acting on its behalf has
          offered, transferred, pledged, sold or otherwise disposed of the Assigned
          Loans
          or any interest in the Assigned Loans, or solicited any offer to buy or
          accept a
          transfer, pledge or other disposition of the Assigned Loans, or any interest
          in
          the Assigned Loans or otherwise approached or negotiated with respect to
          the
          Assigned Loans, or any interest in the Assigned Loans with any Person in
          any
          manner, or made any general solicitation by means of general advertising
          or in
          any other manner, or taken any other action which would constitute a
          distribution of the Assigned Loans under the Securities Act of 1933, as
          amended
          (the “1933 Act”)
          or which
          would render the disposition of the Assigned Loans a violation of Section
          5 of
          the 1933 Act or require registration pursuant thereto. 

         

        3.  Assignee
          warrants and represents to, and covenants with, Assignor and Company as
          of the
          Closing Date:

         

        (a)  Assignee
          is duly organized, validly existing and in good standing under the laws
          of the
          jurisdiction of its incorporation and has all requisite power and authority
          to
          acquire, own and purchase the Assigned Loans;

         

        (b)  Assignee
          has full corporate power and authority to execute, deliver and perform
          its
          obligations under this AAR Agreement, and to consummate the transactions
          set
          forth herein. The consummation of the transactions contemplated by this
          AAR
          Agreement is in the ordinary course of Assignee’s business and will not conflict
          with, or result in a breach of, any of the terms, conditions or provisions
          of
          Assignee’s certificate of incorporation or by-laws or any legal restriction, or
          any material agreement or instrument to which Assignee is now a party or
          by
          which it is bound, or result in the violation of any law, rule, regulation,
          order, judgment or decree to which Assignee or its property is subject.
          The
          execution, delivery and performance by Assignee of this AAR Agreement and
          the
          consummation by it of the transactions contemplated hereby, have been duly
          authorized by all necessary corporate action on the part of Assignee. This
          AAR
          Agreement has been duly executed and delivered by Assignee and, upon the
          due
          authorization, execution and delivery by Assignor and Company, will constitute
          the valid and legally binding obligation of Assignee enforceable against
          Assignee in accordance with its terms except as enforceability may be limited
          by
          bankruptcy, reorganization, insolvency, moratorium or other similar laws
          now or
          hereafter in effect relating to creditors’ rights generally, and by general
          principles of equity regardless of whether enforceability is considered
          in a
          proceeding in equity or at law;

         

        (c)  No
          consent, approval, order or authorization of, or declaration, filing or
          registration with, any governmental entity is required to be obtained or
          made by
          Assignee in connection with the execution, delivery or performance by Assignee
          of this AAR Agreement, or the consummation by it of the transactions
          contemplated hereby; and

         

        (d)  Assignee
          agrees to be bound by all of the terms, covenants and conditions of the
          Servicing Agreement with respect to the Assigned Loans, and from and after
          the
          Closing Date, Assignee assumes for the benefit of each of Assignor and
          Company
          all of Assignor’s obligations thereunder but solely with respect to such
          Assigned Loans.

         

        4.  Company
          warrants and represents to, and covenants with, Assignor and Assignee as
          of the
          Closing Date:

         

        (a)  Attached
          hereto as Attachment
          2
          is a
          true and accurate copy of the Servicing Agreement, which Agreement is in
          full
          force and effect as of the Closing Date and the provisions of which have
          not
          been waived, amended or modified in any respect, nor has any notice of
          termination been given thereunder;

         

        (b)  Company
          is duly organized, validly existing and in good standing under the laws
          of the
          jurisdiction of its incorporation, and has all requisite power and authority
          to
          service the Assigned Loans and otherwise to perform its obligations under
          the
          Servicing Agreement;

         

        (c)  Company
          has full corporate power and authority to execute, deliver and perform
          its
          obligations under this AAR Agreement, and to consummate the transactions
          set
          forth herein. The consummation of the transactions contemplated by this
          AAR
          Agreement is in the ordinary course of Company’s business and will not conflict
          with, or result in a breach of, any of the terms, conditions or provisions
          of
          Company’s articles of incorporation or by-laws or any legal restriction, or any
          material agreement or instrument to which Company is now a party or by
          which it
          is bound, or result in the violation of any law, rule, regulation, order,
          judgment or decree to which Company or its property is subject. The execution,
          delivery and performance by Company of this AAR Agreement and the consummation
          by it of the transactions contemplated hereby, have been duly authorized
          by all
          necessary corporate action on the part of Company. This AAR Agreement has
          been
          duly executed and delivered by Company, and, upon the due authorization,
          execution and delivery by Assignor and Assignee, will constitute the valid
          and
          legally binding obligation of Company, enforceable against Company in accordance
          with its terms except as enforceability may be limited by bankruptcy,
          reorganization, insolvency, moratorium or other similar laws now or hereafter
          in
          effect relating to creditors’ rights generally, and by general principles of
          equity regardless of whether enforceability is considered in a proceeding
          in
          equity or at law;

         

        (d)  No
          consent, approval, order or authorization of, or declaration, filing or
          registration with, any governmental entity is required to be obtained or
          made by
          Company in connection with the execution, delivery or performance by Company
          of
          this AAR Agreement, or the consummation by it of the transactions contemplated
          hereby; 

         

        (e)  The
          representations and warranties made by Company in Section 3.01(b) of the
          Servicing Agreement are true and correct in all material respects as of
          the
          Closing Date; 

         

        (f)  Company
          shall service the Assigned Loans in accordance with the terms and provisions
          of
          the Servicing Agreement and shall establish a Collection Account and Servicing
          Accounts under the Servicing Agreement with respect to the Assigned Loans
          separate from any Collection Account and Servicing Accounts previously
          established under the Servicing Agreement in favor of Assignor and shall
          remit
          collections received to such account to the Master Servicer, on behalf
          of the
          related trust established under the Pooling and Servicing Agreement. The
          Collection Account and Servicing Accounts shall be entitled “Select Portfolio
          Servicing, Inc. as servicer in trust for ACE Securities Corp. Home Equity
          Loan
          Trust, Series 2006-SD2”; and

         

        (g)  (i)
          No
          default or servicing related performance trigger has occurred as to any
          other
          securitization due to any act or failure to act of Company; (ii) no material
          noncompliance with applicable servicing criteria as to any other securitization
          has been disclosed or reported by Company; (iii) Company has not been terminated
          as servicer in a residential mortgage loan securitization, either due to
          a
          servicing default or to application of a servicing performance test or
          trigger;
          (iv) no material changes to Company’s servicing policies and procedures for
          similar loans has occurred in the preceding three years; (v) there are
          no
          aspects of Company’s financial condition that could reasonably be expected to
          have a material adverse impact on the performance by Company of its obligations
          hereunder; (vi) there are no legal proceedings pending, or known to be
          contemplated by governmental authorities, against Company that could be
          material
          to investors in the securities issued; and (vii) there are no affiliations,
          relationships or transactions relating to Company of a type that are described
          under Item 1119 of Regulation AB.

         

        5.  Company
          hereby acknowledges that the Master Servicer has been appointed as the
          master
          servicer of the Assigned Loans pursuant to the Pooling and Servicing Agreement.
          Company shall deliver all reports and other documents relating to the servicing
          of the Assigned Loans required to be delivered under the Servicing Agreement
          to:

         

        Wells
          Fargo Bank, National Association

        9062
          Old
          Annapolis Road

        Columbia,
          Maryland 21045

        Attention:
          ACE 2006-SD2

        Telecopier
          No.: (410) 715-2380

         

        Recognition
          of Assignee

         

        6.  From
          and
          after the Closing Date, Company shall recognize Assignee as owner of the
          Assigned Loans and acknowledges that the Assigned Loans will be part of
          a REMIC,
          and will service the Assigned Loans from and after the Closing Date in
          accordance with the Servicing Agreement but in no event in a manner that
          would
          (i) cause any REMIC to fail to qualify as a REMIC or (ii) result in the
          imposition of a tax upon any REMIC (including but not limited to the tax
          on
          prohibited transactions as defined in Section 860F(a)(2) of the Code and
          the tax
          on contributions to a REMIC set forth in Section 860G(d) of the Code).
          It is the
          intention of Assignor, Company and Assignee that this AAR Agreement shall
          be
          binding upon and for the benefit of the respective successors and assigns
          of the
          parties hereto. Neither Company nor Assignor shall amend or agree to amend,
          modify, waive, or otherwise alter any of the terms or provisions of the
          Servicing Agreement which amendment, modification, waiver or other alteration
          would in any way affect the Assigned Loans without the prior written consent
          of
          the Trustee and the Master Servicer. Pursuant to the Pooling and Servicing
          Agreement, the Assignee will assign all of its rights under this AAR Agreement
          to the Trustee for the benefit of the Certificateholders.

         

        Any
          indemnification obligations and other expenses required to be paid by the
          Trustee, as assignee of the Assignee, to the Company under the Servicing
          Agreement, which are not attributable to any actions or inactions by the
          Assignor with respect to the Assigned Loans, shall be obligations of the
          trust
          fund established under the Pooling and Servicing Agreement and payable
          out of
          the distribution account established under the Pooling and Servicing
          Agreement.
          

         

        In
          addition, Company hereby acknowledges that from and after the Closing Date,
          the
          Assigned Loans will be subject to the terms and conditions of the Pooling
          and
          Servicing Agreement pursuant to which the Master Servicer is required to
          monitor
          the performance by Company of its servicing obligations under the Servicing
          Agreement, and has the right to enforce the obligations of Company under
          the
          Servicing Agreement with respect to the servicing of the Assigned Loans.
          Such
          right will include, without limitation, the right to terminate Company
          under the
          Servicing Agreement as provided therein, the right to receive all remittances
          required to be made by Company under the Servicing Agreement, the right
          to
          receive all monthly reports and other data required to be delivered by
          Company
          under the Servicing Agreement, the right to examine the books and records
          of
          Company, indemnification rights, and the right to exercise certain rights
          of
          consent and approval relating to actions taken by Company. In connection
          therewith, Company hereby agrees to make all remittances required under
          the
          Servicing Agreement with respect to the Assigned Loans to the Master Servicer
          in
          accordance with the following wire transfer instructions:

         

        Wells
          Fargo Bank, National Association

        ABA
          #
          121000248

        Account
          Name: SAS Clearing Account

        Account
          #
          3970771416

        For
          Further Credit to: ACE Securities Corp., Series 2006-SD2, 

        Account
          Number 50929100

         

        Prepayment
          Penalty Verification.

         

        7.  On
          or
          prior to each Determination Date, the Company shall provide in an electronic
          format reasonably acceptable to the Master Servicer the data necessary
          for the
          Master Servicer to perform its verification duties set forth in this
          Section 7 of the AAR Agreement. The Master Servicer or a third party
          reasonably acceptable to the Master Servicer and the Assignee (the “Verification
          Agent”) will perform such verification duties and will use its best efforts to
          issue its findings in a report (the “Verification Report”) delivered to the
          Master Servicer and the Assignee within ten (10) Business Days following
          the
          related Remittance Date; provided, however, that if the Verification Agent
          is
          unable to issue the Verification Report within ten (10) Business Days following
          the Remittance Date, the Verification Agent may issue and deliver to the
          Master
          Servicer and the Assignee the Verification Report upon the completion of
          its
          verification duties. The Master Servicer shall forward the Verification
          Report
          to the Company and shall notify the Company if the Master Servicer has
          determined that the Company did not deliver the appropriate Prepayment
          Charge to
          the Master Servicer in accordance with this AAR Agreement. Such written
          notification from the Master Servicer shall include the loan number, prepayment
          penalty code and prepayment penalty amount as calculated by the Master
          Servicer
          or the Verification Agent, as applicable, of each Assigned Loan for which
          there
          is a discrepancy. If the Company agrees with the verified amounts, the
          Company
          shall adjust the immediately succeeding Remittance Report and the amount
          remitted to the Master Servicer with respect to prepayments accordingly.
          If the
          Company disagrees with the determination of the Master Servicer, the Company
          shall use its best efforts to notify the Master Servicer of such disagreement
          and provide the Master Servicer with detailed information to support its
          position within ten (10) Business Days of its receipt of the Verification
          Report. The Company and the Master Servicer shall cooperate to resolve
          any
          discrepancy on or prior to the immediately succeeding Remittance Date,
          and the
          Company will indicate the effect of such resolution on the related Remittance
          Report and shall adjust the amount remitted with respect to prepayments
          on such
          Remittance Date accordingly.

         

        During
          such time as the Company and the Master Servicer are resolving discrepancies
          with respect to the Prepayment Charges, no payments in respect of any disputed
          Prepayment Charges will be remitted to the Master Servicer for deposit
          in the
          related distribution account established under the Pooling and Servicing
          Agreement. In connection with such duties, the Master Servicer shall be
          able to
          rely solely on the information provided to it by the Company in accordance
          with
          this Section 7 of the AAR Agreement. The Master Servicer shall not be
          responsible for verifying the accuracy of any of the information provided
          to it
          by the Company.

         

        Notwithstanding
          anything in this AAR Agreement or in the Servicing Agreement to the contrary,
          the Company shall not be liable for waiving any Prepayment Charge under
          the
          following circumstances: (a) if the related Mortgage Loan is in default
          or
          foreseeable default and such waiver would, in the reasonable judgment of
          the
          Company, maximize recovery of total proceeds on the related Mortgage Loan,
          (b)
          if the enforceability of the Prepayment Charge is limited by bankruptcy,
          insolvency, moratorium, receivership or other similar law relating to creditors’
rights generally, (c) if the prepayment is due to acceleration in connection
          with a foreclosure or other involuntary payment, (d) if the enforceability
          of
          the Prepayment Charge is prohibited or restricted by applicable law, or
          (e) if
          the Company has not received, on a timely basis, documentation sufficient
          to
          allow it to confirm the existence and amount of the Prepayment Charge after
          using reasonable efforts to obtain such documentation.

         

        Modification
          of the Servicing Agreement

         

        8.  Assignor
          and Company hereby amend the Servicing Agreement with respect to the Assigned
          Loans as follows:

         

        (a)  The
          following definitions shall be added to Section 1.01 of the Servicing
          Agreement:

         

        “Arrearages”:
          With
          respect to each Mortgage Loan, the amount, if any, equal to the interest
          portion
          of the payments due on such Mortgage Loan on or prior to the Cut-off Date
          but
          not yet received by the Servicer by such date, as shown on the Mortgage
          Loan
          Schedule.

         

        “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 and identified
          as
          such on the Mortgage Loan Schedule.

         

        (b)  The
          definition of “Closing Date” in Section 1.01 of the Servicing Agreement is
          hereby deleted in its entirety and replaced with the following:

         

        “Closing
          Date”:
          Shall
          mean June 26, 2006.

         

        (c)  The
          definition of “Cut-off Date” in Section 1.01 of the Servicing Agreement is
          hereby deleted in its entirety and replaced with the following:

         

        “Cut-off
          Date”:
          Shall
          mean May 31, 2006.

         

        (d)  Section
          4.19 of the Servicing Agreement is hereby deleted in its entirety.

         

        (e)  Section
          4.20 of the Servicing Agreement is hereby deleted in its entirety.

         

        (f)  Section
          5.02 of the Servicing Agreement is hereby amended by adding the following
          sentence to the end of the first paragraph of such Section:

         

        “Any
          Remittance Report delivered by the Servicer pursuant to this Section 5.02
          shall
          include the amount collected by the Servicer in respect of Arrearages and
          principal due on the Mortgage Loans prior to the Cut-off Date.”

         

        (g)  Section
          5.03(a) of the Servicing Agreement is hereby deleted in its entirety and
          replaced with the following:

         

        “The
          amount of Advances to be made by the Servicer for any Remittance Date shall
          equal, subject to Section 5.03(d), the sum of (i) the aggregate amount of
          scheduled Monthly Payments (net of the related Servicing Fee), due during
          the
          related Due Period in respect of the Mortgage Loans other than the Simple
          Interest Mortgage Loans, which scheduled Monthly Payments were delinquent
          on a
          contractual basis as of the Close of Business on the related Determination
          Date;
          provided however, that with respect to any Balloon Mortgage Loan that is
          delinquent on its maturity date, the 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 5.03 with respect to such Balloon Mortgage
          Loan in an amount equal to an assumed scheduled principal and interest
          that
          would otherwise be due based on the original amortization schedule for
          that
          Balloon Mortgage Loan (with interest at the Net Mortgage Rate), (ii) with
          respect to each REO Property, which REO Property was acquired during or
          prior to
          the related Due Period and as to which REO Property an REO Disposition
          did not
          occur during the related Due Period, an amount equal to the excess, if
          any, of
          the Monthly Payment (with each interest portion thereof net of the related
          Servicing Fee) that would have been due on the related Due Date in respect
          of
          the related Mortgage Loan, over the net income from such REO Property
          transferred to the Collection Account pursuant to Section 4.21 for
          remittance on such Remittance Date and (iii) with respect to each Simple
          Interest Mortgage Loan, the applicable number of days’ interest (net of the
          related Servicing Fees) accruing during the related Due Period on each
          such
          Simple Interest Mortgage Loan for which the Monthly Payment was due during
          the
          related Due Period which Monthly Payment was delinquent as of the Close
          of
          Business on the related Determination Date. For purposes of the preceding
          sentence, the Monthly Payment on each Balloon Mortgage Loan with a delinquent
          Balloon Payment is equal to the assumed monthly payment that would have
          been due
          on the related Due Date based on the original principal amortization schedule
          for such Balloon Mortgage Loan.

         

        Notwithstanding
          the generality of the foregoing, for purposes of the Servicer's determination
          of
          whether or not an Advance is required to be made on a Mortgage Loan for
          which
          the Mortgagor has failed to make one or more Monthly Payments due on such
          Mortgage Loan on or prior to the Cut-off Date, any payment in an amount
          equal to
          a Monthly Payment received by the Servicer during the Due Period relating
          to
          such Remittance Date shall be deemed to be the Monthly Payment due during
          such
          Due Period and the Servicer shall not be required to make an Advance with
          respect to such Mortgage Loan. In addition, no portion of such Monthly
          Payment
          received on such Mortgage Loan will constitute the receipt of an Arrearage
          with
          respect to such Mortgage Loan unless all Monthly Payments required to be
          made on
          such Mortgage Loan for all prior Due Periods occurring subsequent to the
          Cut-off
          Date have been received by the Servicer.”

         

        (h)  The
          second paragraph of Section 6.06 of the Servicing Agreement is hereby amended
          by
          replacing the words “set forth below” in the first sentence thereof with the
          words “set forth in this Section”.

         

        (i)  Subsection
          7.01(vi) is hereby amended by deleting such subsection in its entirety
          and
          replacing it with “[Reserved];”

         

        (j)  Exhibit
          E
          of the Servicing Agreement is modified to include the information set forth
          on
Attachment
          3
          hereto.

         

        Miscellaneous

         

        9.  All
          demands, notices and communications related to the Assigned Loans, the
          Servicing
          Agreement and this AAR Agreement shall be in writing and shall be deemed
          to have
          been duly given if personally delivered at or mailed by registered mail,
          postage
          prepaid, as follows:

         

        (a)  In
          the
          case of Company,

         

        Select
          Portfolio Servicing, Inc.

        3815
          South West Temple

        Salt
          Lake
          City, Utah 84115-4412

        Attention:
          General Counsel

         

        (b)  In
          the
          case of Assignor,

         

        DB
          Structured Products, Inc.

        60
          Wall
          Street

        New
          York,
          New York 10005

        Attention:
          Susan Valenti

         

        (c)  In
          the
          case of Assignee,

         

        Ace
          Securities Corp.

        6525
          Morrison Boulevard, 

        Suite
          318

        Charlotte,
          North Carolina 28211

        Attention:
          Juliana Johnson

         

        10.  Notwithstanding
          anything to the contrary herein, the Company’s obligation to deliver any
          reports, certificates or other documents to the Master Servicer shall survive
          the termination or expiration of this AAR Agreement.

         

        11.  The
          Company hereby acknowledges that the Master Servicer has been appointed
          as the
          master servicer of the Assigned Loans pursuant to the Pooling and Servicing
          Agreement and therefor has the right to enforce all obligations of the
          Company
          under the Servicing Agreement. 

         

        12.  Each
          party will pay any commissions, fees and expenses, including attorney’s fees, it
          has incurred and the Assignor shall pay the fees of its attorneys and the
          reasonable fees of the attorneys of the Assignee in connection with the
          negotiations for, documenting of and closing of the transactions contemplated
          by
          this AAR Agreement.

         

        13.  This
          AAR
          Agreement shall be construed in accordance with the laws of the State of
          New
          York, without regard to conflicts of law principles (other than 5-1401
          or 5-1402
          of the General Obligations Law), and the obligations, rights and remedies
          of the
          parties hereunder shall be determined in accordance with such laws.

         

        14.  No
          term
          or provision of this AAR Agreement may be waived or modified unless such
          waiver
          or modification is in writing and signed by the party against whom such
          waiver
          or modification is sought to be enforced.

         

        15.  This
          AAR
          Agreement shall inure to the benefit of the successors and assigns of the
          parties hereto. Any entity into which Assignor, Assignee or Company may
          be
          merged or consolidated or which succeeds to the business or assets thereof
          shall, without the requirement for any further writing, be deemed Assignor,
          Assignee or Company, respectively, hereunder.

         

        16.  This
          AAR
          Agreement shall survive the conveyance of the Assigned Loans, the assignment
          of
          the Servicing Agreement to the extent of the Assigned Loans by Assignor
          to
          Assignee, and the termination of the Servicing Agreement.

         

        17.  This
          AAR
          Agreement may be executed simultaneously in any number of counterparts.
          Each
          counterpart shall be deemed to be an original and all such counterparts
          shall
          constitute one and the same instrument.

         

        18.  For
          purposes of this AAR Agreement, any Master Servicer shall be considered
          a third
          party beneficiary to this AAR Agreement entitled to all the related rights
          and
          benefits accruing to any Master Servicer as if it were a direct party to
          this
          AAR Agreement.

         

        19.  In
          the
          event that any provision of this AAR Agreement conflicts with any provision
          of
          the Servicing Agreement with respect to the Assigned Loans, the terms of
          this
          AAR Agreement shall control.

         

        20.  A
          copy of
          all assessments, attestations, reports and certifications required to be
          delivered by the Servicer under this AAR Agreement and the Servicing Agreement
          shall be delivered to the Master Servicer, the Assignee and any other parties
          entitled herein or therin to receive such assessments, attestations, reports
          and
          certifications by the date(s) specified herein or therein, and where such
          documents are required to be addressed to any party, such addressees shall
          include the Master Servicer and the Master Servicer shall be entitled to
          rely on
          such documents.

         

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

            
            

          

        

        IN
          WITNESS WHEREOF, the parties hereto have executed this AAR Agreement as
          of the
          day and year first above written.

         

        
          	
                  DB
                    STRUCTURED PRODUCTS, INC.

                  Assignor

                
	 	 
	
                  By:

                	 
	
                  Name:

                	 
	
                  Title:

                	 
	 	 
	
                  By:

                	 
	
                  Name:

                	 
	
                  Title:

                	 
	 
	 
	
                  ACE
                    SECURITIES CORP.

                  Assignee

                
	 	 
	
                  By:

                	 
	
                  Name:

                	 
	
                  Title:

                	 
	 	 
	
                  By:

                	 
	
                  Name:

                	 
	
                  Title:

                	 
	 
	 
	
                  SELECT
                    PORTFOLIO SERVICING, INC.

                  Company

                
	 	 
	
                  By:

                	 
	
                  Name:

                	 
	
                  Title:

                	 
	 
	 
	
                  ACKNOWLEDGED
                    AND AGREED TO:

                  WELLS
                    FARGO BANK, NATIONAL ASSOCIATION

                  Master
                    Servicer

                
	 	 
	
                  By:

                	 
	
                  Name:

                	 
	
                  Title:

                	 

        

        

         

        

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        

         

        ATTACHMENT
          1

         

        ASSIGNED
          LOANS

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        ATTACHMENT
          2

         

        SERVICING
          AGREEMENT

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        ATTACHMENT
          3

         

        Monthly
          Data

         

        BASE
          LIQUIDATION REPORT

        [SEE
          ATTACHED]

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        Standard
          File Layout - Delinquency Reporting

        

        
          	
                  Column/Header
                    Name

                	
                  Description

                	
                  Decimal

                	
                  Format
                    Comment

                
	
                  SERVICER_LOAN_NBR

                	
                  A
                    unique number assigned to a loan by the Servicer. This may be
                    different
                    than the LOAN_NBR

                	 	
                   

                
	
                  LOAN_NBR

                	
                  A
                    unique identifier assigned to each loan by the originator.

                	 	
                   

                
	
                  CLIENT_NBR

                	
                  Servicer
                    Client Number

                	 	 
	
                  SERV_INVESTOR_NBR

                	
                  Contains
                    a unique number as assigned by an external servicer to identify
                    a group of
                    loans in their system.

                	 	
                   

                
	
                  BORROWER_FIRST_NAME

                	
                  First
                    Name of the Borrower.

                	 	 
	
                  BORROWER_LAST_NAME

                	
                  Last
                    name of the borrower.

                	 	 
	
                  PROP_ADDRESS

                	
                  Street
                    Name and Number of Property

                	 	
                   

                
	
                  PROP_STATE

                	
                  The
                    state where the property located.

                	 	
                   

                
	
                  PROP_ZIP

                	
                  Zip
                    code where the property is located.

                	 	
                   

                
	
                  BORR_NEXT_PAY_DUE_DATE

                	
                  The
                    date that the borrower's next payment is due to the servicer
                    at the end of
                    processing cycle, as reported by Servicer.

                	 	
                  MM/DD/YYYY

                
	
                  LOAN_TYPE

                	
                  Loan
                    Type (i.e. FHA, VA, Conv)

                	 	
                   

                
	
                  BANKRUPTCY_FILED_DATE

                	
                  The
                    date a particular bankruptcy claim was filed.

                	 	
                  MM/DD/YYYY

                
	
                  BANKRUPTCY_CHAPTER_CODE

                	
                  The
                    chapter under which the bankruptcy was filed.

                	 	
                   

                
	
                  BANKRUPTCY_CASE_NBR

                	
                  The
                    case number assigned by the court to the bankruptcy
                    filing.

                	 	
                   

                
	
                  POST_PETITION_DUE_DATE

                	
                  The
                    payment due date once the bankruptcy has been approved by the
                    courts

                	 	
                  MM/DD/YYYY

                
	
                  BANKRUPTCY_DCHRG_DISM_DATE

                	
                  The
                    Date The Loan Is Removed From Bankruptcy. Either by Dismissal,
                    Discharged
                    and/or a Motion For Relief Was Granted. 

                	 	
                  MM/DD/YYYY

                
	
                  LOSS_MIT_APPR_DATE

                	
                  The
                    Date The Loss Mitigation Was Approved By The Servicer

                	 	
                  MM/DD/YYYY

                
	
                  LOSS_MIT_TYPE

                	
                  The
                    Type Of Loss Mitigation Approved For A Loan Such As;

                	 	 
	
                  LOSS_MIT_EST_COMP_DATE

                	
                  The
                    Date The Loss Mitigation /Plan Is Scheduled To End/Close

                	 	
                  MM/DD/YYYY

                
	
                  LOSS_MIT_ACT_COMP_DATE

                	
                  The
                    Date The Loss Mitigation Is Actually Completed

                	 	
                  MM/DD/YYYY

                
	
                  FRCLSR_APPROVED_DATE

                	
                  The
                    date DA Admin sends a letter to the servicer with instructions
                    to begin
                    foreclosure proceedings.

                	 	
                  MM/DD/YYYY

                
	
                  ATTORNEY_REFERRAL_DATE

                	
                  Date
                    File Was Referred To Attorney to Pursue Foreclosure

                	 	
                  MM/DD/YYYY

                
	
                  FIRST_LEGAL_DATE

                	
                  Notice
                    of 1st legal filed by an Attorney in a Foreclosure Action

                	 	
                  MM/DD/YYYY

                
	
                  FRCLSR_SALE_EXPECTED_DATE

                	
                  The
                    date by which a foreclosure sale is expected to occur.

                	 	
                  MM/DD/YYYY

                
	
                  FRCLSR_SALE_DATE

                	
                  The
                    actual date of the foreclosure sale.

                	 	
                  MM/DD/YYYY

                
	
                  FRCLSR_SALE_AMT

                	
                  The
                    amount a property sold for at the foreclosure sale.

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                
	
                  EVICTION_START_DATE

                	
                  The
                    date the servicer initiates eviction of the borrower.

                	 	
                  MM/DD/YYYY

                
	
                  EVICTION_COMPLETED_DATE

                	
                  The
                    date the court revokes legal possession of the property from
                    the
                    borrower.

                	 	
                  MM/DD/YYYY

                
	
                  LIST_PRICE

                	
                  The
                    price at which an REO property is marketed.

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                
	
                  LIST_DATE

                	
                  The
                    date an REO property is listed at a particular price.

                	 	
                  MM/DD/YYYY

                
	
                  OFFER_AMT

                	
                  The
                    dollar value of an offer for an REO property.

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                
	
                  OFFER_DATE_TIME

                	
                  The
                    date an offer is received by DA Admin or by the Servicer.

                	 	
                  MM/DD/YYYY

                
	
                  REO_CLOSING_DATE

                	
                  The
                    date the REO sale of the property is scheduled to close.

                	 	
                  MM/DD/YYYY

                
	
                  REO_ACTUAL_CLOSING_DATE

                	
                  Actual
                    Date Of REO Sale

                	 	
                  MM/DD/YYYY

                
	
                  OCCUPANT_CODE

                	
                  Classification
                    of how the property is occupied.

                	 	
                   

                
	
                  PROP_CONDITION_CODE

                	
                  A
                    code that indicates the condition of the property.

                	 	
                   

                
	
                  PROP_INSPECTION_DATE

                	
                  The
                    date a property inspection is performed.

                	 	
                  MM/DD/YYYY

                
	
                  APPRAISAL_DATE

                	
                  The
                    date the appraisal was done.

                	 	
                  MM/DD/YYYY

                
	
                  CURR_PROP_VAL

                	
                   The
                    current "as is" value of the property based on brokers price
                    opinion or
                    appraisal.

                	
                  2

                	
                   

                
	
                  REPAIRED_PROP_VAL

                	
                  The
                    amount the property would be worth if repairs are completed pursuant
                    to a
                    broker's price opinion or appraisal.

                	
                  2

                	
                   

                
	
                  If
                    applicable:

                	
                   

                	 	
                   

                
	
                  DELINQ_STATUS_CODE

                	
                  FNMA
                    Code Describing Status of Loan

                	 	 
	
                  DELINQ_REASON_CODE

                	
                  The
                    circumstances which caused a borrower to stop paying on a loan.
                    Code
                    indicates the reason why the loan is in default for this
                    cycle.

                	 	 
	
                  MI_CLAIM_FILED_DATE

                	
                  Date
                    Mortgage Insurance Claim Was Filed With Mortgage Insurance
                    Company.

                	 	
                  MM/DD/YYYY

                
	
                  MI_CLAIM_AMT

                	
                  Amount
                    of Mortgage Insurance Claim Filed

                	 	
                  No
                    commas(,) or dollar signs ($)

                
	
                  MI_CLAIM_PAID_DATE

                	
                  Date
                    Mortgage Insurance Company Disbursed Claim Payment

                	 	
                  MM/DD/YYYY

                
	
                  MI_CLAIM_AMT_PAID

                	
                  Amount
                    Mortgage Insurance Company Paid On Claim

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                
	
                  POOL_CLAIM_FILED_DATE

                	
                  Date
                    Claim Was Filed With Pool Insurance Company

                	 	
                  MM/DD/YYYY

                
	
                  POOL_CLAIM_AMT

                	
                  Amount
                    of Claim Filed With Pool Insurance Company

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                
	
                  POOL_CLAIM_PAID_DATE

                	
                  Date
                    Claim Was Settled and The Check Was Issued By The Pool
                    Insurer

                	 	
                  MM/DD/YYYY

                
	
                  POOL_CLAIM_AMT_PAID

                	
                  Amount
                    Paid On Claim By Pool Insurance Company

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                
	
                  FHA_PART_A_CLAIM_FILED_DATE

                	
                   Date
                    FHA Part A Claim Was Filed With HUD

                	 	
                  MM/DD/YYYY

                
	
                  FHA_PART_A_CLAIM_AMT

                	
                   Amount
                    of FHA Part A Claim Filed

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                
	
                  FHA_PART_A_CLAIM_PAID_DATE

                	
                   Date
                    HUD Disbursed Part A Claim Payment

                	 	
                  MM/DD/YYYY

                
	
                  FHA_PART_A_CLAIM_PAID_AMT

                	
                   Amount
                    HUD Paid on Part A Claim

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                
	
                  FHA_PART_B_CLAIM_FILED_DATE

                	
                    Date
                    FHA Part B Claim Was Filed With HUD

                	 	
                  MM/DD/YYYY

                
	
                  FHA_PART_B_CLAIM_AMT

                	
                    Amount
                    of FHA Part B Claim Filed

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                
	
                  FHA_PART_B_CLAIM_PAID_DATE

                	
                     Date
                    HUD Disbursed Part B Claim Payment

                	 	
                  MM/DD/YYYY

                
	
                  FHA_PART_B_CLAIM_PAID_AMT

                	
                   Amount
                    HUD Paid on Part B Claim

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                
	
                  VA_CLAIM_FILED_DATE

                	
                   Date
                    VA Claim Was Filed With the Veterans Admin

                	 	
                  MM/DD/YYYY

                
	
                  VA_CLAIM_PAID_DATE

                	
                   Date
                    Veterans Admin. Disbursed VA Claim Payment

                	 	
                  MM/DD/YYYY

                
	
                  VA_CLAIM_PAID_AMT

                	
                   Amount
                    Veterans Admin. Paid on VA Claim

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                

        

         

         

         

        

        Exhibit: Standard
          File Codes - Delinquency Reporting

         

        The
          Loss
          Mit Type
          field
          should show the approved Loss Mitigation Code as follows: 

         

        
          	
                  ·  ASUM-

                	
                  Approved
                    Assumption

                
	
                  ·  BAP-

                	
                  Borrower
                    Assistance Program

                
	
                  ·  CO-

                	
                  Charge
                    Off

                
	
                  ·  DIL-

                	
                  Deed-in-Lieu

                
	
                  ·  FFA-

                	
                  Formal
                    Forbearance Agreement

                
	
                  ·  MOD-

                	
                  Loan
                    Modification

                
	
                  ·  PRE-

                	
                  Pre-Sale

                
	
                  ·  SS-

                	
                  Short
                    Sale

                
	
                  ·  MISC-

                	
                  Anything
                    else approved by the PMI or Pool
                    Insurer

                

        

         

        NOTE:
          Wells
          Fargo Bank will accept alternative Loss Mitigation Types to those above,
          provided that they are consistent with industry standards. If Loss Mitigation
          Types other than those above are used, the Servicer must supply Wells Fargo
          Bank
          with a description of each of the Loss Mitigation Types prior to sending
          the
          file.

         

        The
          Occupant
          Code
          field
          should show the current status of the property code as follows:

         

        
          	
                  ·  Mortgagor

                
	
                  ·  Tenant

                
	
                  ·  Unknown
                    

                
	
                  ·  Vacant

                

        

         

         

        The
          Property
          Condition
          field
          should show the last reported condition of the property as follows:

         

        
          	
                  ·  Damaged

                
	
                  ·  Excellent

                
	
                  ·  Fair

                
	
                  ·  Gone

                
	
                  ·  Good

                
	
                  ·  Poor

                
	
                  ·  Special
                    Hazard

                
	
                  ·  Unknown

                

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        

        Exhibit: Standard
          File Codes - Delinquency Reporting, Continued

         

        The
          FNMA
          Delinquent Reason Code
          field
          should show the Reason for Delinquency as follows: 

         

        

        
          	
                  Delinquency
                    Code

                	
                  Delinquency
                    Description

                
	
                  001

                	
                  FNMA-Death
                    of principal mortgagor

                
	
                  002

                	
                  FNMA-Illness
                    of principal mortgagor

                
	
                  003

                	
                  FNMA-Illness
                    of mortgagor’s family member

                
	
                  004

                	
                  FNMA-Death
                    of mortgagor’s family member

                
	
                  005

                	
                  FNMA-Marital
                    difficulties

                
	
                  006

                	
                  FNMA-Curtailment
                    of income

                
	
                  007

                	
                  FNMA-Excessive
                    Obligation

                
	
                  008

                	
                  FNMA-Abandonment
                    of property

                
	
                  009

                	
                  FNMA-Distant
                    employee transfer

                
	
                  011

                	
                  FNMA-Property
                    problem

                
	
                  012

                	
                  FNMA-Inability
                    to sell property

                
	
                  013

                	
                  FNMA-Inability
                    to rent property

                
	
                  014

                	
                  FNMA-Military
                    Service

                
	
                  015

                	
                  FNMA-Other

                
	
                  016

                	
                  FNMA-Unemployment

                
	
                  017

                	
                  FNMA-Business
                    failure

                
	
                  019

                	
                  FNMA-Casualty
                    loss

                
	
                  022

                	
                  FNMA-Energy
                    environment costs

                
	
                  023

                	
                  FNMA-Servicing
                    problems

                
	
                  026

                	
                  FNMA-Payment
                    adjustment

                
	
                  027

                	
                  FNMA-Payment
                    dispute

                
	
                  029

                	
                  FNMA-Transfer
                    of ownership pending

                
	
                  030

                	
                  FNMA-Fraud

                
	
                  031

                	
                  FNMA-Unable
                    to contact borrower

                
	
                  INC

                	
                  FNMA-Incarceration

                

        

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        

        Exhibit: Standard
          File Codes - Delinquency Reporting, Continued

        

         

        The
          FNMA
          Delinquent Status Code
          field
          should show the Status of Default as follows: 

         

        

        
          	
                  Status
                    Code

                	
                  Status
                    Description

                
	
                  09

                	
                  Forbearance

                
	
                  17

                	
                  Pre-foreclosure
                    Sale Closing Plan Accepted

                
	
                  24

                	
                  Government
                    Seizure

                
	
                  26

                	
                  Refinance

                
	
                  27

                	
                  Assumption

                
	
                  28

                	
                  Modification

                
	
                  29

                	
                  Charge-Off

                
	
                  30

                	
                  Third
                    Party Sale

                
	
                  31

                	
                  Probate

                
	
                  32

                	
                  Military
                    Indulgence

                
	
                  43

                	
                  Foreclosure
                    Started

                
	
                  44

                	
                  Deed-in-Lieu
                    Started

                
	
                  49

                	
                  Assignment
                    Completed

                
	
                  61

                	
                  Second
                    Lien Considerations

                
	
                  62

                	
                  Veteran’s
                    Affairs-No Bid

                
	
                  63

                	
                  Veteran’s
                    Affairs-Refund

                
	
                  64

                	
                  Veteran’s
                    Affairs-Buydown

                
	
                  65

                	
                  Chapter
                    7 Bankruptcy

                
	
                  66

                	
                  Chapter
                    11 Bankruptcy

                
	
                  67

                	
                  Chapter
                    13 Bankruptcy

                

        

         

        

        

         

        
          	
                  Standard
                    File Layout - Master Servicing 

                	 	 	 
	
                  Column
                    Name

                	
                  Description

                	
                  Decimal

                	
                  Format
                    Comment

                	
                  Max
                    Size

                
	
                  SER_INVESTOR_NBR

                	
                  A
                    value assigned by the Servicer to define a group of loans.

                	
                   

                	
                  Text
                    up to 10 digits

                	
                  20

                
	
                  LOAN_NBR

                	
                  A
                    unique identifier assigned to each loan by the investor.

                	
                   

                	
                  Text
                    up to 10 digits

                	
                  10

                
	
                  SERVICER_LOAN_NBR

                	
                  A
                    unique number assigned to a loan by the Servicer. This may be
                    different
                    than the LOAN_NBR.

                	
                   

                	
                  Text
                    up to 10 digits

                	
                  10

                
	
                  BORROWER_NAME

                	
                  The
                    borrower name as received in the file. It is not separated by
                    first and
                    last name.

                	
                   

                	
                  Maximum
                    length of 30 (Last, First)

                	
                  30

                
	
                  SCHED_PAY_AMT

                	
                  Scheduled
                    monthly principal and scheduled interest payment that a borrower
                    is
                    expected to pay, P&I constant.

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                	
                  11

                
	
                  NOTE_INT_RATE

                	
                  The
                    loan interest rate as reported by the Servicer.

                	
                  4

                	
                  Max
                    length of 6

                	
                  6

                
	
                  NET_INT_RATE

                	
                  The
                    loan gross interest rate less the service fee rate as reported
                    by the
                    Servicer.

                	
                  4

                	
                  Max
                    length of 6

                	
                  6

                
	
                  SERV_FEE_RATE

                	
                  The
                    servicer's fee rate for a loan as reported by the Servicer.
                    

                	
                  4

                	
                  Max
                    length of 6

                	
                  6

                
	
                  SERV_FEE_AMT

                	
                  The
                    servicer's fee amount for a loan as reported by the Servicer.
                    

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                	
                  11

                
	
                  NEW_PAY_AMT

                	
                  The
                    new loan payment amount as reported by the Servicer. 

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                	
                  11

                
	
                  NEW_LOAN_RATE

                	
                  The
                    new loan rate as reported by the Servicer. 

                	
                  4

                	
                  Max
                    length of 6

                	
                  6

                
	
                  ARM_INDEX_RATE

                	
                  The
                    index the Servicer is using to calculate a forecasted
                    rate.

                	
                  4

                	
                  Max
                    length of 6

                	
                  6

                
	
                  ACTL_BEG_PRIN_BAL

                	
                  The
                    borrower's actual principal balance at the beginning of the processing
                    cycle.

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                	
                  11

                
	
                  ACTL_END_PRIN_BAL

                	
                  The
                    borrower's actual principal balance at the end of the processing
                    cycle.

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                	
                  11

                
	
                  BORR_NEXT_PAY_DUE_DATE

                	
                  The
                    date at the end of processing cycle that the borrower's next
                    payment is
                    due to the Servicer, as reported by Servicer.

                	
                   

                	
                  MM/DD/YYYY

                	
                  10

                
	
                  SERV_CURT_AMT_1

                	
                  The
                    first curtailment amount to be applied.

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                	
                  11

                
	
                  SERV_CURT_DATE_1

                	
                  The
                    curtailment date associated with the first curtailment amount.
                    

                	
                   

                	
                  MM/DD/YYYY

                	
                  10

                
	
                  CURT_ADJ_
                    AMT_1

                	
                  The
                    curtailment interest on the first curtailment amount, if
                    applicable.

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                	
                  11

                
	
                  SERV_CURT_AMT_2

                	
                  The
                    second curtailment amount to be applied.

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                	
                  11

                
	
                  SERV_CURT_DATE_2

                	
                  The
                    curtailment date associated with the second curtailment
                    amount.

                	
                   

                	
                  MM/DD/YYYY

                	
                  10

                
	
                  CURT_ADJ_
                    AMT_2

                	
                  The
                    curtailment interest on the second curtailment amount, if
                    applicable.

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                	
                  11

                
	
                  SERV_CURT_AMT_3

                	
                  The
                    third curtailment amount to be applied.

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                	
                  11

                
	
                  SERV_CURT_DATE_3

                	
                  The
                    curtailment date associated with the third curtailment
                    amount.

                	
                   

                	
                  MM/DD/YYYY

                	
                  10

                
	
                  CURT_ADJ_AMT_3

                	
                  The
                    curtailment interest on the third curtailment amount, if
                    applicable.

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                	
                  11

                
	
                  PIF_AMT

                	
                  The
                    loan "paid in full" amount as reported by the Servicer.

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                	
                  11

                
	
                  PIF_DATE

                	
                  The
                    paid in full date as reported by the Servicer.

                	
                   

                	
                  MM/DD/YYYY

                	
                  10

                
	
                   

                	
                   

                	
                   

                	
                  Action
                    Code Key: 15=Bankruptcy, 30=Foreclosure, , 60=PIF, 63=Substitution,
                    65=Repurchase,70=REO 

                	
                  2

                
	
                  ACTION_CODE

                	
                  The
                    standard FNMA numeric code used to indicate the default/delinquent
                    status
                    of a particular loan.

                
	
                  INT_ADJ_AMT

                	
                  The
                    amount of the interest adjustment as reported by the
                    Servicer.

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                	
                  11

                
	
                  SOLDIER_SAILOR_ADJ_AMT

                	
                  The
                    Soldier and Sailor Adjustment amount, if applicable.

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                	
                  11

                
	
                  NON_ADV_LOAN_AMT

                	
                  The
                    Non Recoverable Loan Amount, if applicable.

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                	
                  11

                
	
                  LOAN_LOSS_AMT

                	
                  The
                    amount the Servicer is passing as a loss, if applicable.

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                	
                  11

                
	
                  SCHED_BEG_PRIN_BAL

                	
                  The
                    scheduled outstanding principal amount due at the beginning of
                    the cycle
                    date to be passed through to investors.

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                	
                  11

                
	
                  SCHED_END_PRIN_BAL

                	
                  The
                    scheduled principal balance due to investors at the end of a
                    processing
                    cycle.

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                	
                  11

                
	
                  SCHED_PRIN_AMT

                	
                  The
                    scheduled principal amount as reported by the Servicer for the
                    current
                    cycle -- only applicable for Scheduled/Scheduled Loans.

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                	
                  11

                
	
                  SCHED_NET_INT

                	
                  The
                    scheduled gross interest amount less the service fee amount for
                    the
                    current cycle as reported by the Servicer -- only applicable
                    for
                    Scheduled/Scheduled Loans.

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                	
                  11

                
	
                  ACTL_PRIN_AMT

                	
                  The
                    actual principal amount collected by the Servicer for the current
                    reporting cycle -- only applicable for Actual/Actual
                    Loans.

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                	
                  11

                
	
                  ACTL_NET_INT

                	
                  The
                    actual gross interest amount less the service fee amount for
                    the current
                    reporting cycle as reported by the Servicer -- only applicable
                    for
                    Actual/Actual Loans.

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                	
                  11

                
	
                  PREPAY_PENALTY_
                    AMT

                	
                  The
                    penalty amount received when a borrower prepays on his loan as
                    reported by
                    the Servicer. 

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                	
                  11

                
	
                  PREPAY_PENALTY_
                    WAIVED

                	
                  The
                    prepayment penalty amount for the loan waived by the
                    servicer.

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                	
                  11

                
	
                   

                	
                   

                	
                   

                	
                   

                	
                   

                
	
                  MOD_DATE

                	
                  The
                    Effective Payment Date of the Modification for the loan.

                	
                   

                	
                  MM/DD/YYYY

                	
                  10

                
	
                  MOD_TYPE

                	
                  The
                    Modification Type.

                	
                   

                	
                  Varchar
                    - value can be alpha or numeric

                	
                  30

                
	
                  DELINQ_P&I_ADVANCE_AMT

                	
                  The
                    current outstanding principal and interest advances made by
                    Servicer.

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                	
                  11

                

        

        

         

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        

          

          

          
            

            

          

          

          

          SELECT
            PORTFOLIO SERVICING, INC.,

          Servicer

           

          and

           

          DB
            STRUCTURED PRODUCTS, INC.,

          Owner

           

          _______________________________________

          

          SERVICING
            AGREEMENT

           

          _______________________________________

          
 

          Dated
            as
            of May 31, 2006

           

          Fixed
            Rate and Adjustable Rate

          Mortgage
            Loans

           

           

          ACE
            Securities Corp. Home Equity Loan Trust, Series 2006-SD2

           

          

           

          
            

            

          

          

           

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

              
              

            

          

          TABLE
            OF CONTENTS

           

          

           

          
            	
                    ARTICLE
                      I

                  	
                    DEFINITIONS

                  
	
                    Section
                      1.01.

                  	
                    Defined
                      Terms.

                  
	 	 
	
                    ARTICLE
                      II

                  	
                    SERVICING
                      TRANSFER; RECORD TITLE AND POSSESSION OF MORTGAGE LOANS

                  
	
                    Section
                      2.01.

                  	
                    Servicing
                      Transfer; Record Title and Possession of Servicing
                      Files.

                  
	
                    Section
                      2.02.

                  	
                    Books
                      and Records.

                  
	
                    Section
                      2.03.

                  	
                    Transfer
                      of Mortgage Loans.

                  
	
                    Section
                      2.04.

                  	
                    Delivery
                      of Documents.

                  
	 	 
	
                    ARTICLE
                      III

                  	
                    REPRESENTATIONS
                      AND WARRANTIES

                  
	
                    Section
                      3.01.

                  	
                    Representations,
                      Warranties and Covenants of the Owner and the Servicer.

                  
	 	 
	
                    ARTICLE
                      IV

                  	
                    ADMINISTRATION
                      AND SERVICING OF THE MORTGAGE LOANS

                  
	
                    Section
                      4.01.

                  	
                    Servicer
                      to Act as Servicer.

                  
	
                    Section
                      4.02.

                  	
                    Sub-Servicing
                      Agreements Between Servicer and Subservicers.

                  
	
                    Section
                      4.03.

                  	
                    Successor
                      Subservicers.

                  
	
                    Section
                      4.04.

                  	
                    Liability
                      of the Servicer.

                  
	
                    Section
                      4.05.

                  	
                    No
                      Contractual Relationship Between Subservicers and the
                      Owner.

                  
	
                    Section
                      4.06.

                  	
                    Assumption
                      or Termination of Sub-Servicing Agreements by Owner.

                  
	
                    Section
                      4.07.

                  	
                    Collection
                      of Certain Mortgage Loan Payments.

                  
	
                    Section
                      4.08.

                  	
                    Sub-Servicing
                      Accounts.

                  
	
                    Section
                      4.09.

                  	
                    Collection
                      of Taxes, Assessments and Similar Items; Servicing
                      Accounts.

                  
	
                    Section
                      4.10.

                  	
                    Collection
                      Account.

                  
	
                    Section
                      4.11.

                  	
                    Withdrawals
                      from the Collection Account and Distribution Account.

                  
	
                    Section
                      4.12.

                  	
                    Investment
                      of Funds in the Collection Account and the REO Account.

                  
	
                    Section
                      4.13.

                  	
                    Collection
                      Account Statements.

                  
	
                    Section
                      4.14.

                  	
                    Maintenance
                      of Hazard Insurance and Errors and Omissions and Fidelity
                      Coverage.

                  
	
                    Section
                      4.15.

                  	
                    Enforcement
                      of Due-On-Sale Clauses; Assumption Agreements.

                  
	
                    Section
                      4.16.

                  	
                    Realization
                      Upon Defaulted Mortgage Loans.

                  
	
                    Section
                      4.17.

                  	
                    Release
                      of Mortgage Files.

                  
	
                    Section
                      4.18.

                  	
                    Servicing
                      Compensation.

                  
	
                    Section
                      4.19.

                  	
                    Statement
                      as to Compliance.

                  
	
                    Section
                      4.20.

                  	
                    Independent
                      Public Accountants' Servicing Report.

                  
	
                    Section
                      4.21.

                  	
                    Title,
                      Management and Disposition of REO Property.

                  
	
                    Section
                      4.22.

                  	
                    Obligations
                      of the Servicer in Respect of Prepayment Interest
                      Shortfalls.

                  
	
                    Section
                      4.23.

                  	
                    Solicitations.

                  
	
                    Section
                      4.24.

                  	
                    Obligations
                      of the Servicer in Respect of Mortgage Rates and Monthly
                      Payments.

                  
	
                    Section
                      4.25.

                  	
                    The
                      Servicer Indemnification.

                  
	
                    Section
                      4.26.

                  	
                    Certificate
                      Insurer Access.

                  
	 	 
	
                    ARTICLE
                      V

                  	
                    PAYMENTS
                      TO THE OWNER

                  
	
                    Section
                      5.01.

                  	
                    Remittances.

                  
	
                    Section
                      5.02.

                  	
                    Reports.

                  
	
                    Section
                      5.03.

                  	
                    Advances.

                  
	 	 
	
                    ARTICLE
                      VI

                  	
                    THE
                      SERVICER

                  
	
                    Section
                      6.01.

                  	
                    Liability
                      of the Servicer.

                  
	
                    Section
                      6.02.

                  	
                    Merger
                      or Consolidation of, or Assumption of the Obligations of, the
                      Servicer.

                  
	
                    Section
                      6.03.

                  	
                    Limitation
                      on Liability of the Servicer and Others.

                  
	
                    Section
                      6.04.

                  	
                    Servicer
                      Not to Resign.

                  
	
                    Section
                      6.05.

                  	
                    Delegation
                      of Duties.

                  
	
                    Section
                      6.06.

                  	
                    Successor
                      to the Servicer.

                  
	
                    Section
                      6.07.

                  	
                    Inspection.

                  
	 	 
	
                    ARTICLE
                      VII

                  	
                    DEFAULT

                  
	
                    Section
                      7.01.

                  	
                    Events
                      of Default.

                  
	
                    Section
                      7.02.

                  	
                    Waiver
                      of Defaults.

                  
	
                    Section
                      7.03.

                  	
                    Survivability
                      of Servicer Liabilities.

                  
	 	 
	
                    ARTICLE
                      VIII

                  	
                    TERMINATION

                  
	
                    Section
                      8.01.

                  	
                    Termination.

                  
	
                    Section
                      8.02.

                  	
                    Removal
                      of Mortgage Loans from Inclusion under this Agreement upon
                      a Whole Loan
                      Transfer or a Securitization Transaction on One or More Reconstitution
                      Dates.

                  
	 	 
	
                    ARTICLE
                      IX

                  	
                    MISCELLANEOUS
                      PROVISIONS

                  
	
                    Section
                      9.01.

                  	
                    Amendment.

                  
	
                    Section
                      9.02.

                  	
                    Governing
                      Law; Jurisdiction.

                  
	
                    Section
                      9.03.

                  	
                    Notices.

                  
	
                    Section
                      9.04.

                  	
                    Severability
                      of Provisions.

                  
	
                    Section
                      9.05.

                  	
                    Article
                      and Section References.

                  
	
                    Section
                      9.06.

                  	
                    Benefits
                      of Agreement.

                  
	
                    Section
                      9.07.

                  	
                    Advance
                      Facility.

                  
	
                    Section
                      9.08.

                  	
                    Master
                      Servicer.

                  
	
                    Section
                      9.09.

                  	
                    Exhibits.

                  
	
                    Section
                      9.10.

                  	
                    General
                      Interpretive Principles.

                  
	
                    Section
                      9.11.

                  	
                    Reproduction
                      of Documents.

                  
	
                    Section
                      9.12.

                  	
                    Counterparts.

                  
	
                    Section
                      9.13.

                  	
                    Entire
                      Agreement.

                  
	
                    Section
                      9.14.

                  	
                    Confidential
                      Information.

                  
	 	 
	
                    ARTICLE
                      X

                  	
                    COMPLIANCE
                      WITH REGULATION AB.

                  
	
                    Section
                      10.01.

                  	
                    Intent
                      of the Parties; Reasonableness.

                  
	
                    Section
                      10.02.

                  	
                    Additional
                      Representations and Warranties of the Servicer.

                  
	
                    Section
                      10.03.

                  	
                    Information
                      to Be Provided by the Servicer.

                  
	
                    Section
                      10.04.

                  	
                    Servicer
                      Compliance Statement.

                  
	
                    Section
                      10.05.

                  	
                    Report
                      on Assessment of Compliance and Attestation.

                  
	
                    Section
                      10.06.

                  	
                    Use
                      of Subservicers and Subcontractors.

                  
	
                    Section
                      10.07.

                  	
                    Indemnification;
                      Remedies.

                  

          

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

          Exhibits:

           

          
            	
                    Schedule
                      One

                  	
                    Mortgage
                      Loan Schedule

                  
	
                    Exhibit
                      A

                  	
                    Request
                      for Release

                  
	
                    Exhibit
                      B

                  	
                    Form
                      of Annual Certification

                  
	
                    Exhibit
                      C

                  	
                    Form
                      of Servicing Account Letter Agreement

                  
	
                    Exhibit
                      D

                  	
                    Form
                      of Collection Account Letter Agreement

                  
	
                    Exhibit
                      E

                  	
                    Remittance
                      Report

                  
	
                    Exhibit
                      F

                  	
                    Servicing
                      Criteria to be Addressed in Assessment of
                      Compliance

                  

          

          

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

              
              

            

          

          This
            Servicing Agreement is dated as of May 31, 2006 (the “Agreement”), between
            SELECT PORTFOLIO SERVICING, INC. as servicer (the “Servicer”) and DB STRUCTURED
            PRODUCTS, INC. as owner (the “Owner”).

           

          PRELIMINARY
            STATEMENT:

           

          WHEREAS,
            the Owner has purchased certain mortgage loans (“Mortgage Loans”) pursuant to
            the terms of certain mortgage loan purchase agreements between the Owner
            and
            certain third party sellers on a servicing-released basis;

           

          WHEREAS,
            the Owner owns the servicing rights to the mortgage loans and the Servicer
            and
            the Owner have agreed that the Servicer shall service the Mortgage Loans
            on
            behalf of the Owner commencing on the Closing Date, and the parties hereto
            desire to provide the mechanics of such servicing by the Servicer.

           

          NOW,
            THEREFORE, in consideration of the mutual covenants made herein, and
            for other
            good and valuable consideration the receipt and sufficiency of which
            is hereby
            acknowledged, the parties hereto hereby agree as follows:

           

          ARTICLE
            I

           

          DEFINITIONS

           

          
            	Section
                    1.01.  	
                    Defined
                      Terms.

                  

          

           

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

           

          “Advance”:
            As to any Mortgage Loan or REO Property, any advance made by the Servicer
            in
            respect of any Remittance Date pursuant to Section 5.03.

           

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

           

          “Agreement”:
            This Servicing Agreement and all amendments hereof and supplements
            hereto.

           

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

           

          “Balloon
            Mortgage Loan”: A Mortgage Loan that provides for the payment of the unamortized
            principal balance of such Mortgage Loan in a single payment at the maturity
            of
            such Mortgage Loan that is substantially greater than the preceding monthly
            payment.

           

          “Balloon
            Payment”: A payment of the unamortized principal balance of a Mortgage Loan in
            a
            single payment at the maturity of such Mortgage Loan that is substantially
            greater than the preceding Monthly Payment.

           

          “Bankruptcy
            Code”: The Bankruptcy Reform Act of 1978 (Title 11 of the United States Code),
            as amended.

           

          “Business
            Day”: Any day other than a Saturday, a Sunday or a day on which banking or
            savings institutions in the State of Delaware, Maryland, Minnesota, New
            York or
            Utah are authorized or obligated by law or executive order to be
            closed.

           

          “Close
            of
            Business”: As used herein, with respect to any Business Day, 5:00 p.m. (New York
            time).

           

          “Closing
            Date”: The date or dates set forth in the related pricing letter on which
            the
            Servicer from time to time shall begin servicing the Mortgage Loans listed
            on
            the related Mortgage Loan Schedule.

           

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

           

          “Collection
            Account”: A separate, segregated account or accounts created and maintained by
            the Servicer pursuant to Section 4.10, which shall be entitled “Select
            Portfolio Servicing, Inc., as Servicer, in trust for [Owner],” which must be an
            Eligible Account.

           

          “Commission”:
            The United States Securities and Exchange Commission.

           

          “Compensating
            Interest”: As defined in Section 4.22 hereof.

           

          “Custodial
            Agreement”: The agreement governing the retention of the originals of the
            related Mortgage Loan Documents.

           

          “Custodian”:
            Wells Fargo Bank, National Association, or any successor thereto.

           

          “Cut-off
            Date”: With respect to each Mortgage Loan, the date or dates set forth in
            the
            related pricing letter.

           

          “Delinquent”:
            With respect to any Mortgage Loan and related Monthly Payment, the Monthly
            Payment due on a Due Date which is not made by the Close of Business
            on the next
            scheduled Due Date for such Mortgage Loan. For example, a Mortgage Loan
            is 60 or
            more days Delinquent if the Monthly Payment due on a Due Date is not
            made by the
            Close of Business on the second scheduled Due Date after such Due
            Date.

           

          “Depositor”:
            The
            depositor, as such term is defined in Regulation AB, with respect to
            any
            Securitization Transaction.

           

          “Determination
            Date”: With respect to any Remittance Date, the 15th
            day of
            the calendar month in which such Remittance Date occurs or, if such
            15th
            day is
            not a Business Day, the Business Day immediately preceding such 15th
            day.

           

          “Directly
            Operate”: With respect to any REO Property, the furnishing or rendering of
            services to the tenants thereof, the management or operation of such
            REO
            Property, the holding of such REO Property primarily for sale to customers,
            the
            performance of any construction work thereon or any use of such REO Property
            in
            a trade or business conducted by the Servicer other than through a
            Subcontractor; provided, however, that the Servicer shall not be considered
            to
            Directly Operate an REO Property solely because the Servicer establishes
            rental
            terms, chooses tenants, enters into or renews leases, deals with taxes
            and
            insurance, or makes decisions as to repairs or capital expenditures with
            respect
            to such REO Property.

           

          “Due
            Date”: The day of the month on which each Monthly Payment is due on a Mortgage
            Loan, exclusive of any days of grace.

           

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

           

          “Eligible
            Account”: Any of (i) an account or accounts maintained with a federal or state
            chartered depository institution or trust company the short-term unsecured
            debt
            obligations of which (or, in the case of a depository institution or
            trust
            company that is the principal subsidiary of a holding company, the short-term
            unsecured debt obligations of such holding company) are rated A-1 by
            S&P and
            P-1 by Moody's (or comparable ratings if S&P and Moody's are not the Rating
            Agencies) at the time any amounts are held on deposit therein, (ii) an
            account
            or accounts the deposits in which are fully insured by the FDIC (to the
            limits
            established by such corporation), the uninsured deposits in which account
            are
            otherwise secured such that, as evidenced by an Opinion of Counsel delivered
            to
            the Owner, the Owner will have a claim with respect to the funds in such
            account
            or a perfected first priority security interest against such collateral
            (which
            shall be limited to Permitted Investments) securing such funds that is
            superior
            to claims of any other depositors or creditors of the depository institution
            with which such account is maintained or (iii) a trust account or accounts
            maintained with the trust department of a federal or state chartered
            depository
            institution, national banking association or trust company acting in
            its
            fiduciary capacity. Eligible Accounts may bear interest.

           

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

           

          “Escrow
            Payments”: The amounts constituting ground rents, taxes, assessments, water
            rates, fire and hazard insurance premiums and other payments required
            to be
            escrowed by the Mortgagor with the mortgagee pursuant to any Mortgage
            Loan.

           

          “Event
            of
            Default”: One or more of the events described in Section 7.01
            hereof.

           

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

           

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

           

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

           

          “Final
            Recovery Determination”: With respect to any defaulted Mortgage Loan or any REO
            Property, a determination made by the Servicer that all Insurance Proceeds,
            Liquidation Proceeds and other payments or recoveries which the Servicer,
            in its
            reasonable good faith judgment, expects to be finally recoverable in
            respect
            thereof have been so recovered. The Servicer shall maintain records,
            prepared by
            a Servicing Officer, of each Final Recovery Determination made
            thereby.

           

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

           

          “HUD”:
            The United States Department of Housing and Urban Development or any
            successor
            thereto.

           

          “Independent”:
            When used with respect to any specified Person, any such Person who (a)
            is in
            fact independent of the Servicer and its respective Affiliates, (b) does
            not
            have any direct financial interest in or any material indirect financial
            interest in the Servicer or any Affiliate thereof, and (c) is not connected
            with
            the Servicer or any Affiliate thereof as an officer, employee, promoter,
            underwriter, trustee, partner, director or Person performing similar
            functions;
            provided, however, that a Person shall not fail to be Independent of
            the
            Servicer or any Affiliate thereof merely because such Person is the beneficial
            owner of 1% or less of any class of securities issued by the Servicer
            or any
            Affiliate thereof, as the case may be.

           

          “Insurance
            Proceeds”: Proceeds of any title policy, hazard policy or other insurance policy
            covering a Mortgage Loan and received in or prior to the month of charge
            off, to
            the extent such proceeds are received by the Servicer.

           

          “Late
            Collections”: With respect to any Mortgage Loan, all amounts received subsequent
            to the Determination Date immediately following any related Due Period,
            whether
            as late payments of Monthly Payments or as Insurance Proceeds, Liquidation
            Proceeds or otherwise, which represent late payments or collections of
            principal
            and/or interest due (without regard to any acceleration of payments under
            the
            related Mortgage and Mortgage Note) but delinquent on a contractual basis
            for
            such Due Period and not previously recovered.

           

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

           

          “Liquidation
            Proceeds”: The amount (other than amounts received in respect of the rental of
            any REO Property prior to REO Disposition) received by the Servicer in
            connection with (i) the taking of all or a part of a Mortgaged Property
            by
            exercise of the power of eminent domain or condemnation, (ii) the liquidation
            of
            a defaulted Mortgage Loan by means of a trustee's sale, foreclosure sale
            or
            otherwise or (iii) the sale of an REO Property pursuant to or as contemplated
            by
            Section 4.21.

           

          “Master
            Servicer”: With respect to any Securitization Transaction, the “master
            servicer,” if any, identified in the related transaction documents.

           

          “Monthly
            Payment”: With respect to any Mortgage Loan, the scheduled monthly payment of
            principal and interest on such Mortgage Loan which is payable by the
            related
            Mortgagor from time to time under the related Mortgage Note.

           

          “Moody's”:
            Moody's Investors Service, Inc., or its successor in interest.

           

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

           

          “Mortgage
            Loan File”: The mortgage loan documents held by the Custodian for the benefit of
            the Owner.

           

          “Mortgage
            Loan”: An individual Mortgage Loan subject to the terms of this Agreement
            and
            identified on the Mortgage Loan Schedule attached hereto as Schedule
            One.

           

          “Mortgage
            Loan Schedule”: The list of Mortgage Loans subject to this Agreement and
            identified on the schedule attached hereto as Schedule One.

           

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

           

          “Mortgage
            Rate”: With respect to each Mortgage Loan, the rate set forth in the related
            Mortgage Note.

           

          “Mortgaged
            Property”: The underlying property securing a Mortgage Loan, including any REO
            Property, consisting of a fee simple estate in a parcel of real property
            improved by a Residential Dwelling.

           

          “Mortgagor”:
            The obligor on a Mortgage Note.

           

          “Net
            Liquidation Proceeds”: With respect to any Liquidated Mortgage Loan or any other
            disposition of related Mortgaged Property (including REO Property), the
            related
            Liquidation Proceeds and Insurance Proceeds net of Advances, Servicing
            Advances,
            Servicing Fees and any other accrued and unpaid servicing fees or ancillary
            income received in or prior to the month of charge-off and retained in
            connection with the liquidation of such Mortgage Loan or Mortgaged
            Property.

           

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

           

          “New
            Lease”: Any lease of REO Property entered into on behalf of the Owner, including
            any lease renewed or extended on behalf of the Owner.

           

          “Nonrecoverable
            Advance”: Any Advance or Servicing Advance previously made or proposed to be
            made in respect of a Mortgage Loan or REO Property that, in the good
            faith
            business judgment of the Servicer, will not be ultimately recoverable
            from Late
            Collections, Insurance Proceeds or Liquidation Proceeds on such Mortgage
            Loan or
            REO Property as provided herein.

           

          “Officers'
            Certificate”: A certificate signed by the Chairman of the Board, the Vice
            Chairman of the Board, the President or a vice president (however denominated),
            and by the Treasurer, the Secretary, or one of the assistant treasurers
            or
            assistant secretaries of the Servicer.

           

          “Opinion
            of Counsel”: A written opinion of counsel, who may, without limitation, be a
            salaried counsel for the Servicer, acceptable to the Owner.

           

          “Permitted
            Investments”: Any one or more of the following obligations or securities
            acquired at a purchase price of not greater than par, regardless of whether
            issued or managed by the Servicer or any of its respective
            Affiliates:

           

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

           

          (ii)  (A) demand
            and time deposits in, certificates of deposit of, bankers' acceptances
            issued by
            or federal funds sold by any depository institution or trust company
            (including
            the Owner or its agent acting in their respective commercial capacities)
            incorporated under the laws of the United States of America or any state
            thereof
            and subject to supervision and examination by federal and/or state authorities,
            so long as, at the time of such investment or contractual commitment
            providing
            for such investment, such depository institution or trust company (or,
            if the
            only Rating Agency is S&P, in the case of the principal depository
            institution in a depository institution holding company, debt obligations
            of the
            depository institution holding company) or its ultimate parent has a
            short-term
            uninsured debt rating in one of the two highest available ratings of
            Moody's and
            the highest available rating category of S&P and provided that each such
            investment has an original maturity of no more than 365 days; and provided
            further that, if the only Rating Agency is S&P and if the depository or
            trust company is a principal subsidiary of a bank holding company and
            the debt
            obligations of such subsidiary are not separately rated, the applicable
            rating
            shall be that of the bank holding company; and, provided further that,
            if the
            original maturity of such short- term obligations of a domestic branch
            of a
            foreign depository institution or trust company shall exceed 30 days,
            the
            short-term rating of such institution shall be A-1 in the case of S&P if
            S&P is the Rating Agency; and (B) any other demand or time deposit or
            deposit which is fully insured by the FDIC;

           

          (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 principal) rated P-1 by Moody's and rated A-1
            or higher
            by S&P, 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 prices plus accrued interest, (B)
            pursuant
            to such valuation, be equal, at all times, to 105% of the cash transferred
            by
            the Owner in exchange for such collateral and (C) be delivered to the
            Owner or,
            if the Owner is supplying the collateral, an agent for the Owner, 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 that are issued by any corporation
            incorporated under the laws of the United States of America or any State
            thereof
            and that are rated by a Rating Agency in its highest long-term unsecured
            rating
            category at the time of such investment or contractual commitment providing
            for
            such investment;

           

          (v)  commercial
            paper (including both non-interest-bearing discount obligations and
            interest-bearing obligations payable on demand or on a specified date
            not more
            than 30 days after the date of acquisition thereof) that is rated by
            a Rating
            Agency in its highest short-term unsecured debt rating available at the
            time of
            such investment; and

           

          (vi)  units
            of
            money market funds that have been rated “Aaa” by Moody's and “AAA” by
            S&P.

           

          provided,
            that no instrument described hereunder shall evidence either the right
            to
            receive (a) only interest with respect to the obligations underlying
            such
            instrument or (b) both principal and interest payments derived from obligations
            underlying such instrument and the interest and principal payments with
            respect
            to such instrument provide a yield to maturity at par greater than 120%
            of the
            yield to maturity at par of the underlying obligations.

           

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

           

          “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
            Interest Excess”: With respect to any Remittance Date, for each Mortgage Loan
            that was the subject of a voluntary Principal Prepayment in full during
            the
            portion of the related Prepayment Period occurring between the first
            day of the
            calendar month in which such Remittance Date occurs and the last day
            of such
            Prepayment Period, an amount equal to interest (to the extent received)
            at the
            applicable Net Mortgage Rate on the amount of such Principal Prepayment
            for the
            number of days commencing on the first day of the calendar month in which
            such
            Remittance Date occurs and ending on the date on which such prepayment
            is so
            applied.

           

          “Prepayment
            Interest Shortfall”: With respect to any Remittance Date, for each Mortgage Loan
            that was the subject of a voluntary Principal Prepayment in full by or
            on behalf
            of the applicable Mortgagor during the portion of the related Prepayment
            Period
            occurring between the first day of such Prepayment Period and the last
            day of
            the calendar month preceding the calendar month in which such Remittance
            Date
            occurs, an amount equal to interest at the applicable Net Mortgage Rate
            on the
            amount of such Principal Prepayment for the number of days commencing
            on the
            date on which the prepayment is applied and ending on the last day of
            the
            calendar month preceding the calendar month in which such Remittance
            Date
            occurs. The obligations of the Servicer in respect of any Prepayment
            Interest
            Shortfall are set forth in Section 4.22.

           

          “Prepayment
            Period”: With respect to any Remittance Date and prepayments in full, the period
            commencing on the sixteenth (16th)
            day in
            the calendar month preceding the calendar month in which such Remittance
            Date
            occurs and ending on the fifteenth (15th)
            day in
            the calendar month in which such Remittance Date occurs. With respect
            to any
            Remittance Date and prepayments in part, the calendar month prior to
            such
            Remittance Date. 

           

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

           

          “Rating
            Agency or Rating Agencies”: Moody's and S&P or their successors. If such
            agencies or their successors are no longer in existence, “Rating Agencies” shall
            be such nationally recognized statistical rating agencies.

           

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

           

          “Reconstitution”:
            Any Securitization Transaction or Whole Loan Transfer.

           

          “Reconstitution
            Agreements”: The agreement or agreements entered into by the Servicer and the
            Owner and/or certain third parties on the Reconstitution Date or Dates
            with
            respect to any or all of the Mortgage Loans serviced hereunder, in connection
            with a Whole Loan Transfer or a Securitization Transaction as provided
            in
            Section 8.02.

           

          “Reconstitution
            Date”: The date or dates on which any or all of the Mortgage Loans serviced
            under this Agreement shall be removed from this Agreement and reconstituted
            as
            part of a Whole Loan Transfer or Pass-Through Transfer pursuant to Section
            8.02
            hereof. 

           

          “Refinanced
            Mortgage Loan”: A Mortgage Loan the proceeds of which were not used to purchase
            the related Mortgaged Property.

           

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

           

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

           

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

           

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

           

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

           

          “Remittance
            Date”: The
            eighteenth (18th)
            day of
            each month, or if such day is not a Business Day, the first Business
            Day
            preceding such date.

           

          “Remittance
            Report”: A report prepared by the Servicer and delivered to the Owner pursuant
            to Section 5.02, in the form of Exhibit E attached hereto.

           

          “Rents
            from Real Property”: With respect to any REO Property, gross income of the
            character described in Section 856(d) of the Code.

           

          “REO
            Account”: The account or accounts maintained by the Servicer in respect of an
            REO Property pursuant to Section 4.21.

           

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

           

          “REO
            Property”: A Mortgaged Property acquired by the Servicer on behalf of the Owner
            through foreclosure or deed-in-lieu of foreclosure, as described in
            Section 4.21.

           

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

           

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

           

          “S&P”:
            Standard & Poor's Ratings Services, a division of The McGraw-Hill Companies,
            Inc., or its successor in interest.

           

          “Sarbanes-Oxley
            Act”: The Sarbanes-Oxley Act of 2002, as amended from time to time.

           

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

           

          “Securitization
            Transaction”: Any transaction involving either (1) a sale or other transfer of
            some or all of the Mortgage Loans directly or indirectly to an issuing
            entity in
            connection with an issuance of publicly offered or privately placed,
            rated or
            unrated mortgage-backed securities or (2) an issuance of publicly offered
            or
            privately placed, rated or unrated securities, the payments on which
            are
            determined primarily by reference to one or more portfolios of residential
            mortgage loans consisting, in whole or in part, of some or all of the
            Mortgage
            Loans.

           

          “Servicer”:
            Select Portfolio Servicing, Inc., a Utah corporation, or any successor
            servicer
            appointed as herein provided, in its capacity as Servicer
            hereunder.

           

          “Servicer
            Information”: As defined in Section 10.07(a).

           

          “Servicer
            Prepayment Charge Payment Amount”: The amounts payable by the Servicer in
            respect of any waived Prepayment Charges pursuant to Sections 4.01 or
            4.10.

           

          “Servicing
            Account”: The account or accounts created and maintained pursuant to
            Section 4.09.

           

          “Servicing
            Advances”: All customary, reasonable and necessary “out-of-pocket” costs and
            expenses (including reasonable attorneys' fees and expenses) incurred
            by the
            Servicer in the performance of its servicing obligations, including, but not
            limited to, the cost of (i) the preservation, restoration, inspection
            and
            protection of the Mortgaged Property, (ii) any enforcement or judicial
            proceedings, including foreclosures, (iii) the management and liquidation
            of the
            REO Property, (iv) compliance with the obligations under Sections 4.01,
            4.09,
            4.14, 4.15, 4.16, and 4.21, (v) obtaining broker price opinions, and
            (vi)
            locating missing Mortgage Loan documents.

           

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

           

          “Servicing
            Fee”: With respect to each Mortgage Loan and for any calendar month, an amount
            equal to the Servicing Fee Rate accrued for such month (or in the event
            of any
            Principal Prepayment in full made by the Mortgagor during such month,
            the
            Servicing Fee Rate accrued for the number of days covered by the payment
            of
            interest accompanying the Principal Prepayment in full), on the same
            principal
            amount on which interest on such Mortgage Loan accrues for such month.
            A portion
            of such Servicing Fee may be retained by any Subservicer as its servicing
            compensation.

           

          “Servicing
            Fee Rate”: 0.40% per annum.

           

          “Servicing
            File”: The documents pertaining to each Mortgage Loan, which are delivered
            to
            the Servicer in connection with the servicing of the Mortgage Loans,
            as well as
            any documents and information accumulated by Servicer in its role as
            servicer.

           

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

           

          “Servicing
            Transfer Costs”: Shall mean all reasonable costs and expenses incurred by the
            Servicer or its designee in connection with the transfer of servicing
            from a
            predecessor servicer, including, without limitation, any reasonable costs
            or
            expenses associated with the complete transfer of all servicing data
            and the
            completion, correction or manipulation of such servicing data as may
            be required
            by the Servicer or its designee to correct any errors or insufficiencies
            in the
            servicing data or otherwise to enable the Servicer or its designee (or
            any
            successor servicer appointed pursuant to Section 6.06) to service the
            Mortgage Loans properly and effectively.

           

          “Subcontractor”:
            Any vendor, subcontractor or other Person that is not responsible for
            the
            overall servicing (as “servicing” is commonly understood by participants in the
            mortgage-backed securities market) of Mortgage Loans but performs one
            or more
            discrete functions identified in Item 1122(d) of Regulation AB with respect
            to
            Mortgage Loans under the direction or authority of the Servicer or a
            Subservicer.

           

          “Subservicer”:
            Any Person that services Mortgage Loans on behalf of the Servicer or
            any
            Subservicer and is responsible for the performance (whether directly
            or through
            Subservicers or Subcontractors) of a substantial portion of the material
            servicing functions required to be performed by the Servicer under this
            Agreement or any Reconstitution Agreement that are identified in Item
            1122(d) of
            Regulation AB.

           

          “Sub-Servicing
            Account”: An account established by a Subservicer which meets the requirements
            set forth in Section 4.08 and is otherwise acceptable to the
            Servicer.

           

          “Sub-Servicing
            Agreement”: The written contract between the Servicer and a Subservicer relating
            to servicing and administration of certain Mortgage Loans as provided
            in
            Section 4.02.

           

          “Uninsured
            Cause”: Any cause of damage to a Mortgaged Property such that the complete
            restoration of such property is not fully reimbursable by the hazard
            insurance
            policies required to be maintained pursuant to Section 4.14.

           

          “Unpaid
            Principal Balance”: As to each Mortgage Loan on any date of determination, the
            unpaid principal balance of the Mortgage Loan.

           

          “Whole
            Loan Transfer”: Any sale or transfer of some or all of the Mortgage Loans, other
            than a Securitization Transaction.

           

          ARTICLE
            II

           

          SERVICING
            TRANSFER;

          RECORD
            TITLE AND POSSESSION OF MORTGAGE LOANS

           

          
            	Section
                    2.01.  	
                    Servicing
                      Transfer; Record Title and Possession of Servicing Files.

                  

          

           

          With
            respect to each Mortgage Loan to be serviced hereunder, the Owner shall
            deliver
            to the Servicer the Mortgage Loan Schedule not later than the Cut-off
            Date.

           

          The
            Owner
            shall cause the prior servicer of the Mortgage Loans to transfer the
            servicing
            with respect thereto to the Servicer in a manner which complies with
            the Real
            Estate Settlement Procedures Act (RESPA) and which allows the Servicer
            to board
            and service the Mortgage Loans in accordance with this Agreement.

           

          Record
            title to the Mortgage Loans shall be retained by the Owner, and possession
            of
            any Servicing Files delivered to the Servicer shall be held in trust
            for the
            Owner as the owner thereof, for the sole purpose of servicing the Mortgage
            Loans. The ownership of each Mortgage Loan, including the Mortgage Note,
            the
            Mortgage, the Mortgage Loan Documents, the contents of the related Servicing
            File, the servicing rights and all rights, benefits, proceeds and obligations
            arising therefrom or in connection therewith, is vested in the Owner.
            All rights
            arising out of the Mortgage Loans including, but not limited to, all
            funds
            received on or in connection with the Mortgage Loans and all records
            or
            documents with respect to the Mortgage Loans prepared by or which come
            into the
            possession of the Servicer shall be received and held by the Servicer
            in trust
            for the benefit of the Owner as the owner of the Mortgage Loans. Any
            portion of
            the Servicing Files held by the Servicer shall be segregated from the
            other
            books and records of the Servicer and shall be appropriately marked to
            clearly
            reflect the ownership of the Mortgage Loans by the Owner. The Servicer
            shall
            release its custody of the contents of the Servicing Files only in accordance
            with written instructions of the Owner, except when such release is required
            as
            incidental to the Servicer's servicing of the Mortgage Loans. Except
            as provided
            herein, the original Mortgage Loan File for each Mortgage Loan shall
            be retained
            by the Custodian pursuant to the Custodial Agreement. Any fees and expenses
            of
            the Custodian shall be payable by the Owner from its funds.

           

          
            	Section
                    2.02.  	
                    Books
                      and Records.

                  

          

           

          The
            Servicer shall be responsible for maintaining, and shall maintain, a
            complete
            set of books and records for the Mortgage Loans which shall be clearly
            marked to
            reflect the ownership of the Mortgage Loans by the Owner.

           

          
            	Section
                    2.03.  	
                    Transfer
                      of Mortgage Loans.

                  

          

           

          The
            Owner
            shall have the right to assign its interest under this Agreement with
            respect to
            the Mortgage Loans, and designate any person to exercise any rights of
            the Owner
            hereunder, and the assignee or designee shall accede to the rights and
            obligations hereunder of the Owner with respect to such Mortgage Loans;
            provided, however, that the consent of the Servicer shall be required
            (which
            consent shall not be unreasonably withheld) before the Owner may assign
            interest
            under this Agreement as set forth in this Section 2.03 to any person other
            than a trustee in connection with a Securitization Transaction. All references
            to the Owner shall be deemed to include its assignee or designee.

           

          
            	Section
                    2.04.  	
                    Delivery
                      of Documents.

                  

          

           

          The
            Servicer shall forward to the Custodian original documents evidencing
            an
            assumption, modification, consolidation or extension of any Mortgage
            Loan
            entered into in accordance with this Agreement within two weeks of their
            execution; provided, however, that the Servicer shall provide the Custodian
            with
            a certified true copy of any such document submitted for recordation
            within two
            weeks of its execution, and shall provide the original of any document
            submitted
            for recordation or a copy of such document certified by the appropriate
            public
            recording office to be a true and complete copy of the original within
            180 days
            of its submission for recordation. In the event that the Servicer cannot
            provide
            a copy of such document certified by the public recording office within
            such 180
            day period, the Servicer shall deliver to the Custodian, within such
            180 day
            period, an Officers' Certificate of the Servicer which shall (A) identify
            the
            recorded document, (B) state that the recorded document has not been
            delivered
            to the Custodian due solely to a delay caused by the public recording
            office,
            (C) state the amount of time generally required by the applicable recording
            office to record and return a document submitted for recordation, if
            known and
            (D) specify the date the applicable recorded document is expected to
            be
            delivered to the Custodian, and, upon receipt of a copy of such document
            certified by the public recording office, the Servicer shall immediately
            deliver
            such document to the Custodian. In the event the appropriate public recording
            office will not certify as to the accuracy of such document, the Servicer
            shall
            deliver a copy of such document certified by an officer of the Servicer
            to be a
            true and complete copy of the original to the Custodian.

           

          ARTICLE
            III

           

          REPRESENTATIONS
            AND WARRANTIES

           

          
            	Section
                    3.01.  	
                    Representations,
                      Warranties and Covenants of the Owner and the Servicer.

                  

          

           

          (a)  The
            Owner
            hereby represents, warrants and covenants to the Servicer, that as of
            the
            Closing Date or as of such date specifically provided herein:

           

          (i)  The
            Owner
            is a Delaware Corporation with full corporate power and authority to
            conduct its
            business as presently conducted by it to the extent material to the consummation
            of the transactions contemplated herein. The Agreement has been duly
            authorized,
            executed and delivered by the Owner. The Owner has the full corporate
            power and
            authority to execute and deliver, engage in the transactions contemplated
            by,
            and perform and observe the terms and conditions of this Agreement. This
            Agreement evidences the valid, binding and enforceable obligation of
            the Owner,
            subject to applicable bankruptcy, insolvency, reorganization, moratorium
            or
            other similar laws affecting the enforcement of creditors' rights generally,
            and
            all requisite corporate action has been taken by the Owner to make this
            Agreement valid and binding upon the Owner in accordance with its
            terms;

           

          (ii)  The
            consummation of the transactions contemplated by this Agreement are in
            the
            ordinary course of business of the Owner and will not result in the breach
            of
            any term or provision of any organizational documents of the Owner or
            result in
            the breach of any term or provision of, or conflict with or constitute
            a default
            under or result in the acceleration of any obligation under, any agreement,
            indenture or loan or credit agreement or other instrument to which the
            Owner or
            its property is subject, or result in the violation of any law, rule,
            regulation, order, judgment or decree to which the Owner or its property
            is
            subject;

           

          (iii)  The
            execution and delivery of this Agreement by the Owner and the performance
            and
            compliance with its obligations and covenants hereunder do not require
            the
            consent or approval of any governmental authority or, if such consent
            or
            approval is required, it has been obtained;

           

          (iv)  The
            Owner
            does not believe, nor does it have any reason or cause to believe, that
            it
            cannot perform each and every covenant contained in this Agreement;
            and

           

          (v)  There
            is
            no action, suit, proceeding or investigation pending or, to its knowledge,
            threatened against the Owner that, either individually or in the aggregate,
            (A)
            in the judgment of the Owner would reasonably be expected to result in
            any
            change in the business, operations, financial condition, properties or
            assets of
            the Owner that might prohibit or materially and adversely affect the
            performance
            by such Servicer of its obligations under, or validity or enforceability
            of,
            this Agreement, or (B) in the judgment of the Owner would reasonably
            be expected
            to result in any material impairment of the right or ability of the Owner
            to
            carry on its business substantially as now conducted, or (C) in the judgment
            of
            the Owner would reasonably be expected to draw into question the validity
            or
            enforceability of this Agreement or of any action taken or to be taken
            in
            connection with the obligations of the Owner contemplated herein, or
            (D) in the
            judgment of the Owner would reasonably be expected to otherwise be likely
            to
            impair materially the ability of the Owner to perform under the terms
            of this
            Agreement.

           

          (vi)  Neither
            this Agreement nor any information, certificate of an officer, statement
            furnished in writing or report delivered by the Owner in connection with
            the
            transactions contemplated hereby contains any untrue statement of a material
            fact;

           

          (b)  The
            Servicer hereby represents, warrants and covenants to the Owner, that
            as of the
            Closing Date or as of such date specifically provided herein:

           

          (i)  The
            Servicer is duly organized, validly existing, and in good standing under
            the
            laws of the jurisdiction of its formation and has all licenses necessary
            to
            carry on its business as now being conducted and is licensed, qualified
            and in
            good standing in the states where the Mortgaged Property is located if
            the laws
            of such state require licensing or qualification in order to conduct
            business of
            the type conducted by the Servicer or to ensure the enforceability or
            validity
            of each Mortgage Loan; the Servicer has the power and authority to execute
            and
            deliver this Agreement and to perform in accordance herewith; the execution,
            delivery and performance of this Agreement (including all instruments
            of
            transfer to be delivered pursuant to this Agreement) by the Servicer
            and the
            consummation of the transactions contemplated hereby have been duly and
            validly
            authorized; this Agreement evidences the valid, binding and enforceable
            obligation of the Servicer, subject to applicable bankruptcy, insolvency,
            reorganization, moratorium or other similar laws affecting the enforcement
            of
            creditors' rights generally; and all requisite corporate action has been
            taken
            by the Servicer to make this Agreement valid and binding upon the Servicer
            in
            accordance with its terms;

           

          (ii)  The
            consummation of the transactions contemplated by this Agreement are in
            the
            ordinary course of business of the Servicer and will not result in the
            breach of
            any term or provision of the charter or by-laws of the Servicer or result in the
            breach of any term or provision of, or conflict with or constitute a
            default
            under or result in the acceleration of any obligation under, any agreement,
            indenture or loan or credit agreement or other instrument to which the
            Servicer
            or its property is subject, or result in the violation of any law, rule,
            regulation, order, judgment or decree to which the Servicer or its property
            is
            subject;

           

          (iii)  The
            execution and delivery of this Agreement by the Servicer and the performance
            and
            compliance with its obligations and covenants hereunder do not require
            the
            consent or approval of any governmental authority or, if such consent
            or
            approval is required, it has been obtained;

           

          (iv)  The
            Servicer does not believe, nor does it have any reason or cause to believe,
            that
            it cannot perform each and every covenant contained in this
            Agreement;

           

          (v)  There
            is
            no action, suit, proceeding or investigation pending or, to its knowledge,
            threatened against the Servicer that, either individually or in the aggregate,
            (A) in the judgment of the Servicer would reasonably be expected to result
            in
            any change in the business, operations, financial condition, properties
            or
            assets of the Servicer that might prohibit or materially and adversely
            affect
            the performance by such Servicer of its obligations under, or validity
            or
            enforceability of, this Agreement, or (B) in the judgment of the Servicer
            would
            reasonably be expected to result in any material impairment of the right
            or
            ability of the Servicer to carry on its business substantially as now
            conducted,
            or (C) in the judgment of the Servicer would reasonably be expected to
            draw into
            question the validity or enforceability of this Agreement or of any action
            taken
            or to be taken in connection with the obligations of the Servicer contemplated
            herein, or (D) in the judgment of the Servicer would reasonably be expected
            to
            otherwise be likely to impair materially the ability of the Servicer
            to perform
            under the terms of this Agreement;

           

          (vi)  Neither
            this Agreement nor any information, certificate of an officer, statement
            furnished in writing or report delivered by the Servicer in connection
            with the
            transactions contemplated hereby contains any untrue statement of a material
            fact;

           

          (vii)  The
            Servicer represents that its computer and other systems used in servicing
            the
            Mortgage Loans operate in a manner such that the Servicer can service
            the
            Mortgage Loans in accordance with the terms of this Agreement;

           

          (viii)  The
            Servicer is an approved servicer for Fannie Mae and Freddie Mac in good
            standing
            and is a HUD approved mortgagee pursuant to Section 203 of the National
            Housing Act. No event has occurred, including but not limited to a change
            in
            insurance coverage, which would make the Servicer unable to comply with
            Fannie
            Mae, Freddie Mac or HUD eligibility requirements or which would require
            notification to Fannie Mae, Freddie Mac or HUD; and

           

          (ix)  The
            Servicer will not waive any Prepayment Charge unless it is waived in
            accordance
            with the standard set forth in Section 4.01.

           

          Upon
            discovery by the Owner of a breach of any of the foregoing representations,
            warranties and covenants which materially and adversely affects the value
            of any
            Mortgage Loan, Prepayment Charge or the interests therein of the Owner,
            the
            Owner shall give prompt written notice (but in no event later than two
            Business
            Days following such discovery) to the Servicer. Notwithstanding the foregoing,
            within 90 days of the earlier of discovery by the Servicer or receipt
            of notice
            by the Servicer of the breach of the representation or covenant of the
            Servicer
            set forth in Section 3.01(ix) above which materially and adversely affects
            the interests of the Owner, the Servicer must pay the amount of such
            waived
            Prepayment Charge, by depositing such amount into the Custodial
            Account.

           

          ARTICLE
            IV

           

          ADMINISTRATION
            AND SERVICING

          OF
            THE
            MORTGAGE LOANS

           

          
            	Section
                    4.01.  	
                    Servicer
                      to Act as Servicer.

                  

          

           

          The
            Servicer shall service and administer the Mortgage Loans on behalf and
            in the
            best interests of the Owner in accordance with the terms of this Agreement
            and
            the Mortgage Loans, and, to the extent consistent with such terms, in
            the same
            manner in which it services and administers similar mortgage loans for
            its own
            portfolio, giving due consideration to customary and usual standards
            of practice
            of mortgage lenders and loan servicers administering similar mortgage
            loans but
            without regard to:

           

          (i)  any
            relationship that the Servicer, any Subservicer or any Affiliate of the
            Servicer
            or any Subservicer may have with the related Mortgagor;

           

          (ii)  the
            ownership or non-ownership interest of any Mortgage Loan by the Servicer
            or any
            Affiliate of the Servicer;

           

          (iii)  the
            Servicer's obligation to make Advances or Servicing Advances; or

           

          (iv)  the
            Servicer's or any Subservicer's right to receive compensation for its
            services
            hereunder or with respect to any particular transaction.

           

          To
            the
            extent consistent with the foregoing, the Servicer (a) shall seek the
            timely and
            complete recovery of principal and interest on the Mortgage Notes and
            (b) shall
            waive (or permit a Subservicer to waive) a Prepayment Charge only under
            the
            following circumstances: (i) the Servicer determines that such waiver
            would
            maximize recovery of Liquidation Proceeds for such Mortgage Loan, taking
            into
            account the value of such Prepayment Charge and the Mortgage Loan, and
            the
            waiver of such Prepayment Charge is standard and customary in servicing
            similar
            Mortgage Loans (including the waiver of a Prepayment Charge in connection
            with a
            refinancing of the Mortgage Loan related to a default or a reasonably
            foreseeable default), or (ii) (A) the enforceability thereof is limited
            (1) by
            bankruptcy, insolvency, moratorium, receivership, or other similar law
            relating
            to creditors' rights generally or (2) due to acceleration in connection
            with a
            foreclosure or other involuntary payment, or (B) the enforceability is
            otherwise
            limited or prohibited by subsequent changes in applicable law or (iii)
            the
            Servicer has not received any documentation and/or information to enable
            the
            Servicer to confirm the existence of such Prepayment Charge. In no event
            shall
            the Servicer waive a Prepayment Charge in connection with a refinancing
            of a
            Mortgage Loan that is not related to a default or a reasonably foreseeable
            default. If the Servicer waives or does not collect all or a portion
            of a
            Prepayment Charge relating to a Principal Prepayment in full or in part
            due to
            any action or omission of the Servicer, other than as provided above,
            the
            Servicer shall deposit the amount of such Prepayment Charge (or such
            portion
            thereof as had been waived for deposit) into the Collection Account at
            the time
            of such prepayment for distribution in accordance with the terms of this
            Agreement. Subject only to the above-described servicing standards and
            the terms
            of this Agreement and of the Mortgage Loans, the Servicer shall have
            full power
            and authority, acting alone or through Subservicers as provided in
            Section 4.02, to do or cause to be done any and all things in connection
            with such servicing and administration which it may deem necessary or
            desirable
            with the goal of maximizing proceeds of the Mortgage Loan. Without limiting
            the
            generality of the foregoing, the Servicer in its own name or in the name
            of a
            Subservicer is hereby authorized and empowered by the Owner when the
            Servicer
            believes it appropriate in its best judgment in accordance with the servicing
            standards set forth above, to execute and deliver, on behalf of the Owner,
            and
            upon written notice to the Owner, 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 the Mortgaged
            Properties and to institute foreclosure proceedings or obtain a deed-in-lieu
            of
            foreclosure so as to convert the ownership of such properties, and to
            hold or
            cause to be held title to such properties, on behalf of the Owner. The
            Servicer
            shall service and administer the Mortgage Loans in accordance with applicable
            state and federal law and shall provide to the Mortgagors any reports
            required
            to be provided to them thereby. The Servicer shall also comply in the
            performance of this Agreement with all reasonable rules and requirements
            of each
            insurer under any standard hazard insurance policy. Subject to
            Section 4.17, within five (5) days of the Closing Date, the Owner shall
            execute, at the written request of the Servicer, and furnish to the Servicer
            and
            any Subservicer any special or limited powers of attorney and other documents
            necessary or appropriate to enable the Servicer or any Subservicer to
            carry out
            their servicing and administrative duties hereunder; provided,
            such
            limited powers of attorney or other documents shall be prepared by the
            Servicer
            and submitted to the Owner for execution. The Owner shall not be liable
            for the
            actions of the Servicer or any Subservicers under such powers of
            attorney.

           

          In
            addition, the Servicer hereby covenants to furnish, on a monthly basis,
            in
            accordance with the Fair Credit Reporting Act and its implementing regulations,
            accurate and complete information on its borrower credit files to Equifax,
            Experian and the TransUnion Credit Information Company with respect to
            each
            Mortgagor under a Mortgage Loan serviced by the Servicer subject to this
            Agreement.

           

          Subject
            to Section 4.09 hereof, in accordance with the standards of the second
            preceding paragraph, the Servicer, on escrowed accounts, 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
            Servicing Advances reimbursable in the first instance from related collections
            from the Mortgagors pursuant to Section 4.09, and further as provided in
            Section 4.11. Any cost incurred by the Servicer or by Subservicers in
            effecting the payment of taxes and assessments on a Mortgaged Property
            shall not
            be added to the Unpaid Principal Balance of the related Mortgage Loan,
            notwithstanding that the terms of such Mortgage Loan so permit.

           

          Notwithstanding
            anything in this Agreement to the contrary, the Servicer may not make
            any future
            advances with respect to a Mortgage Loan (except as provided in
            Section 5.03) and the Servicer shall not (i) except, as provided in
            Section 4.07 (when the Mortgagor is in default with respect to the Mortgage
            Loan or such default is, in the judgment of the Servicer, reasonably
            foreseeable), permit any modification with respect to any Mortgage Loan
            that
            would change the Mortgage Rate, reduce or increase the Unpaid Principal
            Balance
            (except for reductions resulting from actual payments of principal) or
            change
            the final maturity date on such Mortgage Loan, or (ii) permit any modification,
            waiver or amendment of any term of any Mortgage Loan that would both
            (A) effect
            an exchange or reissuance of such Mortgage Loan under Section 1001 of the
            Code (or Treasury regulations promulgated thereunder) and (B) cause any
            REMIC
            created in connection with the Mortgage Loans to fail to qualify as a
            REMIC
            under the Code or the imposition of any tax on “prohibited transactions” or
“contributions after the startup date” under the REMIC Provisions.

           

          
            	Section
                    4.02.  	
                    Sub-Servicing
                      Agreements Between Servicer and Subservicers.

                  

          

           

          (a)  The
            Servicer may enter into Sub-Servicing Agreements with Subservicers for
            the
            servicing and administration of the Mortgage Loans; provided, however,
            that such
            agreements would not result in a withdrawal or a downgrading by any Rating
            Agency of the rating on any certificates issued in connection with a
            Securitization Transaction.

           

          Each
            Subservicer shall be (i) authorized to transact business in the state
            or states
            where the related Mortgaged Properties it is to service are situated,
            if and to
            the extent required by applicable law to enable the Subservicer to perform
            its
            obligations hereunder and under the Sub-Servicing Agreement and (ii)
            a Freddie
            Mac or Fannie Mae approved mortgage servicer. Each Sub-Servicing Agreement
            must
            impose on the Subservicer requirements conforming to the provisions set
            forth in
            Section 4.08 and provide for servicing of the Mortgage Loans consistent
            with the terms of this Agreement. The Servicer will examine each Sub-Servicing
            Agreement and will be familiar with the terms thereof. The terms of any
            Sub-Servicing Agreement will not be inconsistent with any of the provisions
            of
            this Agreement. The Servicer and the Subservicers may enter into and
            make
            amendments to the Sub-Servicing Agreements or enter into different forms
            of
            Sub-Servicing Agreements; provided, however, that any such amendments
            or
            different forms shall be consistent with and not violate the provisions
            of this
            Agreement, and that no such amendment or different form shall be made
            or entered
            into which could be reasonably expected to be materially adverse to the
            interests of the Owner without the consent of the Owner; provided, further,
            that
            the consent of the Owner shall not be required (i) to cure any ambiguity
            or
            defect in a Sub-Servicing Agreement, (ii) to correct, modify or supplement
            any
            provisions of a Subservicing Agreement, or (iii) to make any other provisions
            with respect to matters or questions arising under a Sub-Servicing Agreement,
            which, in each case, shall not be inconsistent with the provisions of
            this
            Agreement. Any variation without the consent of the Owner from the provisions
            set forth in Section 4.08 relating to insurance or priority requirements of
            Sub-Servicing Accounts, or credits and charges to the Subservicing Accounts
            or
            the timing and amount of remittances by the Subservicers to the Servicer,
            are
            conclusively deemed to be inconsistent with this Agreement and therefore
            prohibited. The Servicer shall deliver to the Owner copies of all Sub-Servicing
            Agreements, and any amendments or modifications thereof, promptly upon
            the
            Servicer's execution and delivery of such instruments.

           

          (b)  As
            part
            of its servicing activities hereunder, the Servicer, for the benefit
            of the
            Owner, shall enforce the obligations of each Subservicer under the related
            Sub-Servicing Agreement, including, without limitation, any obligation
            to make
            advances in respect of delinquent payments as required by a Sub-Servicing
            Agreement. Such enforcement, including, without limitation, the legal
            prosecution of claims, termination of Sub-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 Servicer, in its good faith business judgment,
            would require were it the owner of the related Mortgage Loans. The Servicer
            shall pay the costs of such enforcement at its own expense, and shall
            be
            reimbursed therefor only (i) from a general recovery resulting from such
            enforcement, to the extent, if any, that such recovery exceeds all amounts
            due
            in respect of the related Mortgage Loans, or (ii) from a specific recovery
            of
            costs, expenses or attorneys' fees against the party against whom such
            enforcement is directed.

           

          
            	Section
                    4.03.  	
                    Successor
                      Subservicers.

                  

          

           

          The
            Servicer shall be entitled to terminate any Sub-Servicing Agreement and
            the
            rights and obligations of any Subservicer pursuant to any Sub-Servicing
            Agreement in accordance with the terms and conditions of such Sub-Servicing
            Agreement. In the event of termination of any Subservicer, all servicing
            obligations of such Subservicer shall be assumed simultaneously by the
            Servicer
            without any act or deed on the part of such Subservicer or the Servicer,
            and the
            Servicer either shall service directly the related Mortgage Loans or
            shall enter
            into a Sub-Servicing Agreement with a successor Subservicer which qualifies
            under Section 4.02.

           

          Any
            Sub-Servicing Agreement shall include the provision that such agreement
            may be
            immediately terminated by the Servicer without fee, in accordance with
            the terms
            of this Agreement, in the event that the Servicer shall, for any reason,
            no
            longer be the Servicer (including termination due to an Event of
            Default).

           

          
            	Section
                    4.04.  	
                    Liability
                      of the Servicer.

                  

          

           

          Notwithstanding
            any Sub-Servicing Agreement or the provisions of this Agreement relating
            to
            agreements or arrangements between the Servicer and a Subservicer or
            reference
            to actions taken through a Subservicer or otherwise, the Servicer shall
            remain
            obligated and primarily liable to the Owner for the servicing and administering
            of the Mortgage Loans in accordance with the provisions of Section 4.01
            without diminution of such obligation or liability by virtue of such
            Sub-Servicing Agreements or arrangements or by virtue of indemnification
            from
            the Subservicer and to the same extent and under the same terms and conditions
            as if the Servicer alone were servicing and administering the Mortgage
            Loans.
            The Servicer shall be entitled to enter into any agreement with a Subservicer
            for indemnification of the Servicer by such Subservicer and nothing contained
            in
            this Agreement shall be deemed to limit or modify such
            indemnification.

           

          
            	Section
                    4.05.  	
                    No
                      Contractual Relationship Between Subservicers and the
                      Owner.

                  

          

           

          Any
            Sub-Servicing Agreement that may be entered into and any transactions
            or
            services relating to the Mortgage Loans involving a Subservicer in its
            capacity
            as such shall be deemed to be between the Subservicer and the Servicer
            alone,
            and the Owner shall not be deemed a party thereto and shall have no claims,
            rights, obligations, duties or liabilities with respect to the Subservicer
            except as set forth in Section 4.06. The Servicer shall be solely liable
            for all fees owed by it to any Subservicer, irrespective of whether the
            Servicer's compensation pursuant to this Agreement is sufficient to pay
            such
            fees.

           

          
            	Section
                    4.06.  	
                    Assumption
                      or Termination of Sub-Servicing Agreements by Owner.

                  

          

           

          In
            the
            event the Servicer shall for any reason no longer be the servicer (including
            by
            reason of the occurrence of an Event of Default), the Owner shall thereupon
            assume all of the rights and obligations of the Servicer under each
            Sub-Servicing Agreement that the Servicer may have entered into, provided
            however, that any successor servicer may terminate the Subservicer. Upon
            such
            assumption, the Owner (or the successor servicer appointed pursuant to
            Section 6.06) shall be deemed, subject to Section 4.03, to have
            assumed all of the departing Servicer's interest therein and to have
            replaced
            the departing Servicer as a party to each Sub-Servicing Agreement to
            the same
            extent as if each Sub-Servicing Agreement had been assigned to the assuming
            party, except that (i) the departing Servicer shall not thereby be relieved
            of
            any liability or obligations under any Sub-Servicing Agreement that arose
            before
            it ceased to be the Servicer and (ii) neither the Owner nor any successor
            Servicer shall be deemed to have assumed any liability or obligation
            of the
            Servicer that arose before it ceased to be the Servicer.

           

          The
            Servicer at its expense shall, upon request of the Owner, deliver to
            the
            assuming party all documents and records relating to each Sub-Servicing
            Agreement and the Mortgage Loans then being serviced and an accounting
            of
            amounts collected and held by or on behalf of it, and otherwise use its
            best
            efforts to effect the orderly and efficient transfer of the Sub-Servicing
            Agreements to the assuming party. All Servicing Transfer Costs shall
            be paid by
            the predecessor Servicer upon presentation of reasonable documentation
            of such
            costs, and if such predecessor Servicer defaults in its obligation to
            pay such
            costs, such costs shall be paid by the successor Servicer.

           

          
            	Section
                    4.07.  	
                    Collection
                      of Certain Mortgage Loan Payments.

                  

          

           

          The
            Servicer shall make reasonable efforts to collect all payments called
            for under
            the terms and provisions of the Mortgage Loans, and shall, to the extent
            such
            procedures shall be consistent with this Agreement and the terms and
            provisions
            of any applicable insurance policies provided to the Servicer, follow
            such
            collection procedures as it would follow with respect to mortgage loans
            comparable to the Mortgage Loans and held for its own account. Consistent
            with
            the foregoing, the Servicer may in its discretion (i) waive any late
            payment
            charge or, if applicable, any penalty interest (other than any Prepayment
            Charge
            except as set forth in Section 4.01), or (ii) extend the due dates for the
            Monthly Payments due on a Mortgage Note for a period of not greater than
            180
            days; provided, however, that any extension pursuant to clause (ii) above
            shall
            not affect the amortization schedule of any Mortgage Loan for purposes
            of any
            computation hereunder, except as provided below. In the event of any
            such
            arrangement pursuant to clause (ii) above, the Servicer shall make timely
            advances on such Mortgage Loan during such extension pursuant to
            Section 5.03 and in accordance with the amortization schedule of such
            Mortgage Loan without modification thereof by reason of such arrangement.
            Notwithstanding the foregoing, in the event that any Mortgage Loan is
            in default
            or, in the judgment of the Servicer, such default is reasonably foreseeable,
            the
            Servicer, consistent with the standards set forth in Section 4.01, may also
            waive, modify or vary any term of such Mortgage Loan (including modifications
            that would change the Mortgage Rate, forgive the payment of principal
            or
            interest or extend the final maturity date of such Mortgage Loan), accept
            payment from the related Mortgagor of an amount less than the Unpaid
            Principal
            Balance in final satisfaction of such Mortgage Loan, or consent to the
            postponement of strict compliance with any such term or otherwise grant
            indulgence to any Mortgagor (any and all such waivers, modifications,
            variances,
            forgiveness of principal or interest, postponements, or indulgences collectively
            referred to herein as “forbearance”), provided, however, that in no event shall
            the Servicer grant any such forbearance (other than as permitted by the
            second
            sentence of this Section) with respect to any one Mortgage Loan more
            than once
            in any 12 month period or more than three times over the life of such
            Mortgage
            Loan. The Servicer's analysis supporting any forbearance and the conclusion
            that
            any forbearance meets the standards of Section 4.01 shall be reflected in
            writing in the Servicing File.

           

          
            	Section
                    4.08.  	
                    Sub-Servicing
                      Accounts.

                  

          

           

          In
            those
            cases where a Subservicer is servicing a Mortgage Loan pursuant to a
            Sub-Servicing Agreement, the Subservicer will be required to establish
            and
            maintain one or more accounts (collectively, the “Sub-Servicing Account”). The
            Sub-Servicing Account shall be an Eligible Account and shall comply with
            all
            requirements of this Agreement relating to the Collection Account. The
            Subservicer shall deposit in the clearing account in which it customarily
            deposits payments and collections on mortgage loans in connection with
            its
            mortgage loan servicing activities on a daily basis, and in no event
            more than
            one Business Day after the Subservicer's receipt thereof, all proceeds
            of
            Mortgage Loans received by the Subservicer less its servicing compensation
            to
            the extent permitted by the Sub-Servicing Agreement, and shall thereafter
            deposit such amounts in the Sub-Servicing Account, in no event more than
            two
            Business Days after the receipt of such amounts. The Subservicer shall
            thereafter deposit such proceeds in the Collection Account or remit such
            proceeds to the Servicer for deposit in the Collection Account not later
            than
            two Business Days after the deposit of such amounts in the Sub-Servicing
            Account. For purposes of this Agreement, the Servicer shall be deemed
            to have
            received payments on the Mortgage Loans when the Subservicer receives
            such
            payments.

           

          
            	Section
                    4.09.  	
                    Collection
                      of Taxes, Assessments and Similar Items; Servicing
                      Accounts.

                  

          

           

          The
            Servicer shall establish and maintain, or cause to be established and
            maintained, one or more accounts (the “Servicing Accounts”), into which all
            Escrow Payments shall be deposited and retained. Servicing Accounts shall
            be
            Eligible Accounts. The creation of any Servicing Account shall be evidenced
            by a
            letter agreement in the form set forth in Exhibit C hereto. The Servicer
            shall
            deposit in the clearing account in which it customarily deposits payments
            and
            collections on mortgage loans in connection with its mortgage loan servicing
            activities on a daily basis, and in no event more than one Business Day
            after
            the Servicer's receipt thereof, all Escrow Payments and Insurance Proceeds
            collected on account of the Mortgage Loans and shall thereafter deposit
            in the
            Servicing Accounts, in no event more than two Business Days after the
            receipt of
            such Escrow Payments/Insurance Proceeds, all Escrow Payments and Insurance
            Proceeds (to the extent that such Insurance Proceeds are to be applied
            to the
            restoration of the related Mortgaged Property or released to the Mortgagor
            in
            accordance with the procedure that the Servicer would follow in servicing
            mortgage loans held for its own account) collected on account of the
            Mortgage
            Loans for the purpose of effecting the payment of any such items as required
            under the terms of this Agreement. Withdrawals of amounts from a Servicing
            Account may be made only to (i) effect payment of taxes, assessments,
            hazard
            insurance premiums, and comparable items in a manner and at a time that
            assures
            that the lien priority of the Mortgage is not jeopardized (or, with respect
            to
            the payment of taxes, in a manner and at a time that avoids the loss
            of the
            Mortgaged Property due to a tax sale or the foreclosure as a result of
            a tax
            lien); (ii) reimburse the Servicer (or a Subservicer to the extent provided
            in
            the related Sub-Servicing Agreement) out of related collections for any
            Servicing Advances made pursuant to Section 4.01 (with respect to taxes and
            assessments) and Section 4.14 (with respect to hazard insurance); (iii)
            refund to Mortgagors any sums as may be determined to be overages; (iv)
            pay
            interest, if required and as described below, to Mortgagors on balances
            in the
            Servicing Account; (v) apply to restoration repair of the Mortgaged Property;
            or
            (vi) clear and terminate the Servicing Account at the termination of
            the
            Servicer's obligations and responsibilities in respect of the Mortgage
            Loans
            under this Agreement. In the event the Servicer shall deposit in a Servicing
            Account any amount not required to be deposited therein, it may at any
            time
            withdraw such amount from such Servicing Account, any provision herein
            to the
            contrary notwithstanding. The Servicer will be responsible for the
            administration of the Servicing Accounts and will be obligated to make
            Servicing
            Advances to such accounts when and as necessary to avoid the lapse of
            insurance
            coverage on the Mortgaged Property, or which the Servicer knows, or in
            the
            exercise of the required standard of care of the Servicer hereunder should
            know,
            is necessary to avoid the loss of the Mortgaged Property due to a tax
            sale or
            the foreclosure as a result of a tax lien. If any such payment has not
            been made
            and the Servicer receives notice of a tax lien with respect to the Mortgage
            being imposed, the Servicer will, within ten Business Days of receipt
            of such
            notice, advance or cause to be advanced funds necessary to discharge
            such lien
            on the Mortgaged Property. As part of its servicing duties, the Servicer
            or
            Subservicers shall pay to the Mortgagors interest on funds in the Servicing
            Accounts, to the extent required by law and, to the extent that interest
            earned
            on funds in the Servicing Accounts is insufficient, to pay such interest
            from
            its or their own funds, without any reimbursement therefor. The Servicer
            may pay
            to itself any excess interest on funds in the Servicing Accounts, to
            the extent
            such action is in conformity with the servicing standard set forth in
            Section 4.01, is permitted by law and such amounts are not required to be
            paid to Mortgagors or used for any of the other purposes set forth
            above.

           

          
            	Section
                    4.10.  	
                    Collection
                      Account.

                  

          

           

          (a)  On
            behalf
            of the Owner, the Servicer shall establish and maintain, or cause to
            be
            established and maintained, one or more segregated accounts (such account
            or
            accounts, the “Collection Account”), held in trust for the benefit of the Owner.
            The creation of any Collection Account shall be evidenced by a letter
            agreement
            in the form set forth in Exhibit D. On behalf of the Owner, the Servicer
            shall
            deposit or cause to be deposited in the clearing account in which it
            customarily
            deposits payments and collections on mortgage loans in connection with
            its
            mortgage loan servicing activities on a daily basis, and in no event
            more than
            one Business Day after the Servicer's receipt thereof, and shall thereafter
            deposit in the Collection Account, in no event more than two Business
            Days after
            the Servicer's receipt thereof, as and when received or as otherwise
            required
            hereunder, the following payments and collections received or made by
            it
            subsequent to the Cut-off Date (other than in respect of principal or
            interest
            on the Mortgage Loans due on or before the Cut-off Date) or payments
            (other than
            Principal Prepayments) received by it on or prior to the Cut-off Date
            but
            allocable to a Due Period subsequent thereto:

           

          (i)  all
            payments on account of principal, including Principal Prepayments (but
            not
            Prepayment Charges), on the Mortgage Loans;

           

          (ii)  all
            payments on account of interest (net of the related Servicing Fee) on
            each
            Mortgage Loan;

           

          (iii)  all
            Net
            Liquidation Proceeds and condemnation proceeds (other than proceeds collected
            in
            respect of any particular REO Property, amounts paid in connection with
            a
            purchase of Mortgage Loans and REO Properties and Insurance Proceeds
            to be
            applied toward the restoration or repair of the Mortgaged
            Property);

           

          (iv)  any
            amounts required to be deposited pursuant to Section 4.12 in connection
            with any losses realized on Permitted Investments with respect to funds
            held in
            the Collection Account;

           

          (v)  any
            amounts required to be deposited by the Servicer pursuant to the second
            paragraph of Section 4.14(a) in respect of any blanket policy
            deductibles;

           

          (vi)  all
            Prepayment Charges collected by the Servicer and any Servicer Prepayment
            Charge
            Payment Amounts in connection with the Principal Prepayment of any of
            the
            Mortgage Loans;

           

          (vii)  any
            Advances, as required pursuant to Section 5.03;

           

          (viii)  any
            amounts required to be deposited pursuant to Section 4.21(c) in connection
            with any REO Property, in the event the Collection Account is used as
            an REO
            Account pursuant to Section 4.21; and

           

          (ix)  any
            Compensating Interest to be deposited pursuant to Section 4.22 in
            connection with any Prepayment Interest Shortfall.

           

          The
            foregoing requirements for deposit in the Collection Account shall be
            exclusive,
            it being understood and agreed that, without limiting the generality
            of the
            foregoing, payments in the nature of Servicing Fees, late payment charges,
            assumption fees, insufficient funds charges and ancillary income (other
            than
            Prepayment Charges) need not be deposited by the Servicer in the Collection
            Account and may be retained by the Servicer as additional compensation.
            In the
            event the Servicer shall deposit in the Collection Account any amount
            not
            required to be deposited therein, it may at any time withdraw such amount
            from
            the Collection Account, any provision herein to the contrary
            notwithstanding.

           

          
            	Section
                    4.11.  	
                    Withdrawals
                      from the Collection Account and Distribution Account.

                  

          

           

          The
            Servicer shall, from time to time, make withdrawals from the Collection
            Account
            for any of the following purposes or as described in
            Section 5.01:

           

          (i)  to
            remit
            to the Owner for deposit in the amounts required or permitted to be so
            remitted
            pursuant to Section 5.01;

           

          (ii)  subject
            to Section 4.16(c), to reimburse the Servicer for (a) any unreimbursed
            Advances to the extent of amounts received which represent Late Collections
            (net
            of the related Servicing Fees), Liquidation Proceeds and Insurance Proceeds
            on
            Mortgage Loans or REO Properties with respect to which such Advances
            were made
            in accordance with the provisions of Section 5.03; or (b) without limiting
            any right of withdrawal set forth in clauses (v) or (vi) below, any unreimbursed
            Advances made with respect to a Mortgage Loan that, upon a Final Recovery
            Determination with respect to such Mortgage Loan are Nonrecoverable Advances,
            but only to the extent that Late Collections, Liquidation Proceeds and
            Insurance
            Proceeds received with respect to such Mortgage Loan are insufficient
            to
            reimburse the Servicer for such unreimbursed Advances;

           

          (iii)  subject
            to Section 4.16(c), to pay the Servicer or any Subservicer (a) any unpaid
            Servicing Fees, (b) any unreimbursed Servicing Advances with respect
            to each
            Mortgage Loan, but only to the extent of any Late Collections, Liquidation
            Proceeds and Insurance Proceeds received with respect to such Mortgage
            Loan or
            REO Property, and (c) without limiting any right of withdrawal set forth
            in
            clauses (v) or (vi) below, any Servicing Advances made with respect to
            a
            Mortgage Loan that, upon a Final Recovery Determination with respect
            to such
            Mortgage Loan are Nonrecoverable Advances, but only to the extent that
            Late
            Collections, Liquidation Proceeds and Insurance Proceeds received with
            respect
            to such Mortgage Loan are insufficient to reimburse the Servicer or any
            Subservicer for Servicing Advances;

           

          (iv)  to
            pay to
            the Servicer as servicing compensation (in addition to the Servicing
            Fee) on the
            Servicer Remittance Date any interest or investment income earned on
            funds
            deposited in the Collection Account;

           

          (v)  to
            reimburse the Servicer for any Advance or Servicing Advance previously
            made
            which the Servicer has determined to be a Nonrecoverable Advance in accordance
            with the provisions of Section 5.03;

           

          (vi)  to
            pay,
            or to reimburse the Servicer for Servicing Advances in respect of, expenses
            incurred in connection with any Mortgage Loan pursuant to
            Section 4.16(b);

           

          (vii)  to
            reimburse the Servicer for expenses incurred by or reimbursable to the
            Servicer
            pursuant to Section 6.03;

           

          (viii)  to
            pay
            itself any Prepayment Interest Excess;

           

          (ix)  to
            make
            withdrawals from the REO Account pursuant to Section 4.21 if the Collection
            Account is an REO Account as set forth in Section 4.21; and

           

          (x)  to
            clear
            and terminate the Collection Account.

           

          The
            foregoing requirements for withdrawal from the Collection Account shall
            be
            exclusive. In the event the Servicer shall deposit in the Collection
            Account any
            amount not required to be deposited therein, it may at any time withdraw
            such
            amount from the Collection Account, any provision herein to the contrary
            notwithstanding.

           

          The
            Servicer shall keep and maintain separate accounting, on a Mortgage Loan
            by
            Mortgage Loan basis, for the purpose of justifying any withdrawal from
            the
            Collection Account, to the extent held by or on behalf of it, pursuant
            to
            subclauses (ii) through (ix) above. The Servicer shall provide written
            notification to the Owner, on or prior to the next succeeding Remittance
            Date,
            upon making any withdrawals from the Collection Account pursuant to subclause
            (v) above; provided that an Officers' Certificate in the form described
            under
            Section 5.03(d) shall suffice for such written notification to the Owner in
            respect hereof.

           

          
            	Section
                    4.12.  	
                    Investment
                      of Funds in the Collection Account and the REO Account.

                  

          

           

          (a)  The
            Servicer may direct any depository institution maintaining the Collection
            Account or REO Account to invest the funds on deposit in such accounts,
            (each
            such account, for the purposes of this Section 4.12, an “Investment
            Account”). All investments pursuant to this Section 4.12 shall be in one or
            more Permitted Investments bearing interest or sold at a discount, and
            maturing,
            unless payable on demand, (i) no later than the Business Day immediately
            preceding the date on which such funds are required to be withdrawn from
            such
            account pursuant to this Agreement, if a Person other than the Owner
            is the
            obligor thereon or if such investment is managed or advised by a Person
            other
            than the Owner or an Affiliate of the Owner, and (ii) no later than the
            date on
            which such funds are required to be withdrawn from such account pursuant
            to this
            Agreement, if the Owner is the obligor thereon or if such investment
            is managed
            or advised by the Owner or any Affiliate. All such Permitted Investments
            shall
            be held to maturity, unless payable on demand. Any investment of funds
            in an
            Investment Account shall be made in the name of the Owner, or in the
            name of a
            nominee of the Owner. The Owner shall be entitled to sole possession
            (except
            with respect to investment direction of funds held in the Collection
            Account and
            any income and gain realized thereon) over each such investment, and
            any
            certificate or other instrument evidencing any such investment shall
            be
            delivered directly to the Owner or its agent, together with any document
            of
            transfer necessary to transfer title to such investment to the Owner
            or its
            nominee.

           

          (b)  All
            income and gain realized from the investment of funds deposited in the
            Collection Account and any REO Account held by or on behalf of the Servicer
            shall be for the benefit of the Servicer and shall be subject to its
            withdrawal
            in accordance with Section 4.11 or Section 4.21, as applicable. The
            Servicer shall deposit in the Collection Account or any REO Account,
            as
            applicable, the amount of any loss of principal incurred in respect of
            any such
            Permitted Investment made with funds in such account immediately upon
            realization of such loss.

           

          
            	Section
                    4.13.  	
                    Collection
                      Account Statements.

                  

          

           

          With
            respect to any Securitization Transaction, not later than fifteen days
            after
            each Remittance Date, the Servicer shall forward to the master servicer,
            the
            securities administrator, the trustee and the depositor a statement prepared
            by
            the institution at which the related Collection Account is maintained
            setting
            forth the status of the related Collection Account as of the close of
            business
            on such Remittance Date and showing, for the period covered by such statement,
            the aggregate amount of deposits into and withdrawals from the related
            Collection Account of each category of deposit specified in Section 4.10
            and
            each category of withdrawal specified in Section 4.11. 

           

          
            	Section
                    4.14.  	
                    Maintenance
                      of Hazard Insurance and Errors and Omissions and Fidelity
                      Coverage.

                  

          

           

          (a)  The
            Servicer shall cause to be maintained for each Mortgage Loan hazard insurance
            with extended coverage on the Mortgaged Property in an amount which is
            at least
            equal to the lesser of (i) the current Unpaid Principal Balance of such
            Mortgage
            Loan and (ii) the amount necessary to fully compensate for any damage
            or loss to
            the improvements that are a part of such property on a replacement cost
            basis,
            in each case in an amount not less than such amount as is necessary to
            avoid the
            application of any coinsurance clause contained in the related hazard
            insurance
            policy. The Servicer shall also cause to be maintained hazard insurance
            with
            extended coverage on each REO Property in an amount which is at least
            equal to
            the lesser of (i) the maximum insurable value of the improvements which
            are a
            part of such property and (ii) the Unpaid Principal Balance of the related
            Mortgage Loan at the time it became an REO Property. The Servicer will
            comply in
            the performance of this Agreement with all reasonable rules and requirements
            of
            each insurer under any such hazard policies. Any amounts to be collected
            by the
            Servicer under any such policies (other than amounts to be applied to
            the
            restoration or repair of the property subject to the related Mortgage
            or amounts
            to be released to the Mortgagor in accordance with the procedures that
            the
            Servicer would follow in servicing loans held for its own account, subject
            to
            the terms and conditions of the related Mortgage and Mortgage Note) shall
            be
            deposited in the Collection Account, subject to withdrawal pursuant to
            Section 4.11, if received in respect of a Mortgage Loan, or in the REO
            Account, subject to withdrawal pursuant to Section 4.21, if received in
            respect of an REO Property. Any cost incurred by the Servicer in maintaining
            any
            such insurance shall not be added to the Unpaid Principal Balance of
            the related
            Mortgage Loan, notwithstanding that the terms of such Mortgage Loan so
            permit.
            It is understood and agreed that no earthquake or other additional insurance
            is
            to be required of any Mortgagor other than pursuant to such applicable
            laws and
            regulations as shall at any time be in force and as shall require such
            additional insurance. If the Mortgaged Property or REO Property is at
            any time
            in an area identified in the Federal Register by the Federal Emergency
            Management Agency as having special flood hazards and flood insurance
            has been
            made available, the Servicer will cause to be maintained a flood insurance
            policy in respect thereof. Such flood insurance shall be in an amount
            equal to
            the lesser of (i) the Unpaid Principal Balance of the related Mortgage
            Loan and
            (ii) the maximum amount of such insurance available for the related Mortgaged
            Property under the national flood insurance program (assuming that the
            area in
            which such Mortgaged Property is located is participating in such
            program).

           

          In
            the
            event that the Servicer shall obtain and maintain a blanket policy with
            an
            insurer having a General Policy Rating of B:III or better in Best's Key
            Rating
            Guide (or such other rating that is comparable to such rating) insuring
            against
            hazard losses on all of the Mortgage Loans, it shall conclusively be
            deemed to
            have satisfied its obligations as set forth in the first two sentences
            of this
            Section 4.14, it being understood and agreed that such policy may contain a
            deductible clause, in which case the Servicer shall, in the event that
            there
            shall not have been maintained on the related Mortgaged Property or REO
            Property
            a policy complying with the first two sentences of this Section 4.14, and
            there shall have been one or more losses which would have been covered
            by such
            policy, deposit to the Collection Account from its own funds the amount
            not
            otherwise payable under the blanket policy because of such deductible
            clause. In
            connection with its activities as administrator and servicer of the Mortgage
            Loans, the Servicer agrees to prepare and present, on behalf of itself
            and the
            Owner claims under any such blanket policy in a timely fashion in accordance
            with the terms of such policy.

           

          (b)  The
            Servicer shall keep in force during the term of this Agreement a policy
            or
            policies of insurance covering errors and omissions for failure in the
            performance of the Servicer's obligations under this Agreement, which
            policy or
            policies shall be in such form and amount that would meet the requirements
            of
            Fannie Mae or Freddie Mac if it were the purchaser of the Mortgage Loans,
            unless
            the Servicer has obtained a waiver of such requirements from Fannie Mae
            or
            Freddie Mac. The Servicer shall also maintain a fidelity bond in the
            form and
            amount that would meet the requirements of Fannie Mae or Freddie Mac,
            unless the
            Servicer has obtained a waiver of such requirements from Fannie Mae or
            Freddie
            Mac. The Servicer shall be deemed to have complied with this provision
            if an
            Affiliate of the Servicer has such errors and omissions and fidelity
            bond
            coverage and, by the terms of such insurance policy or fidelity bond,
            the
            coverage afforded thereunder extends to the Servicer. Any such errors
            and
            omissions policy and fidelity bond shall by its terms not be cancelable
            without
            thirty days' prior written notice to the Owner. The Servicer shall also
            cause
            each Subservicer to maintain a policy of insurance covering errors and
            omissions
            and a fidelity bond which would meet such requirements. The Servicer
            shall
            furnish a copy of such errors and omissions policy and fidelity bond
            or waiver
            of the same upon request by the master servicer with respect to any
            Securitization Transaction. 

           

          
            	Section
                    4.15.  	
                    Enforcement
                      of Due-On-Sale Clauses; Assumption Agreements.

                  

          

           

          The
            Servicer will, to the extent it has knowledge of any conveyance or prospective
            conveyance of any Mortgaged Property by any Mortgagor (whether by absolute
            conveyance or by contract of sale, and whether or not the Mortgagor remains
            or
            is to remain liable under the Mortgage Note and/or the Mortgage), exercise
            its
            rights to accelerate the maturity of such Mortgage Loan under the “due-on-sale”
clause, if any, applicable thereto; provided, however, that the Servicer
            shall
            not be required to take such action if in its sole business judgment
            the
            Servicer believes it is not in the best interests of the Owner and shall
            not
            exercise any such rights if prohibited by law from doing so. If the Servicer
            reasonably believes it is unable under applicable law to enforce such
            “due-on-sale” clause, or if any of the other conditions set forth in the proviso
            to the preceding sentence apply, the Servicer will enter into an assumption
            and
            modification agreement from or with the person to whom such property
            has been
            conveyed or is proposed to be conveyed, pursuant to which such person
            becomes
            liable under the Mortgage Note and, to the extent permitted by applicable
            state
            law, the Mortgagor remains liable thereon. The Servicer is also authorized
            to
            enter into a substitution of liability agreement with such person, pursuant
            to
            which the original Mortgagor is released from liability and such person
            is
            substituted as the Mortgagor and becomes liable under the Mortgage Note,
            provided that no such substitution shall be effective unless such person
            satisfies the underwriting criteria of the Servicer and has a credit
            risk rating
            at least equal to that of the original Mortgagor. In connection with
            any
            assumption or substitution, the Servicer shall apply such underwriting
            standards
            and follow such practices and procedures as shall be normal and usual
            in its
            general mortgage servicing activities and as it applies to other mortgage
            loans
            owned solely by it. The Servicer shall not take or enter into any assumption
            and
            modification agreement, however, unless (to the extent practicable in
            the
            circumstances) it shall have received confirmation, in writing, of the
            continued
            effectiveness of any applicable hazard insurance policy. Any fee collected
            by
            the Servicer in respect of an assumption, modification or substitution
            of
            liability agreement shall be retained by the Servicer as additional servicing
            compensation. In connection with any such assumption, no material term
            of the
            Mortgage Note (including but not limited to the related Mortgage Rate
            and the
            amount of the Monthly Payment) may be amended or modified, except as
            permitted
            hereunder or as otherwise required pursuant to the terms thereof. The
            Servicer
            shall notify the Owner that any such substitution, modification or assumption
            agreement has been completed by forwarding to the Owner the executed
            original of
            such substitution, modification or assumption agreement, which document
            shall be
            added to the related Servicing File and shall, for all purposes, be considered
            a
            part of such Servicing File to the same extent as all other documents
            and
            instruments constituting a part thereof.

           

          Notwithstanding
            the foregoing paragraph or any other provision of this Agreement, the
            Servicer
            shall not be deemed to be in default, breach or any other violation of
            its
            obligations hereunder by reason of any assumption of a Mortgage Loan
            by
            operation of law or by the terms of the Mortgage Note or any assumption
            which
            the Servicer may be restricted by law from preventing, for any reason
            whatsoever. For purposes of this Section 4.15, the term “assumption” is
            deemed to also include a sale (of the Mortgaged Property) subject to
            the
            Mortgage that is not accompanied by an assumption or substitution of
            liability
            agreement.

           

          
            	Section
                    4.16.  	
                    Realization
                      Upon Defaulted Mortgage Loans.

                  

          

           

          (a)  The
            Servicer shall use its best efforts, consistent with the servicing standards
            set
            forth in Section 4.01, to foreclose upon or otherwise comparably convert
            the ownership of properties securing such of the Mortgage Loans as come
            into and
            continue in default and as to which no satisfactory arrangements can
            be made for
            collection of delinquent payments pursuant to Section 4.07. The Servicer
            shall be responsible for all costs and expenses incurred by it in any
            such
            proceedings; provided, however, that such costs and expenses will be
            recoverable
            as Servicing Advances by the Servicer as contemplated in Section 4.11 and
            Section 4.21. The foregoing is subject to the provision that, in any case
            in which a Mortgaged Property shall have suffered damage from an Uninsured
            Cause, the Servicer shall not be required to expend its own funds toward
            the
            restoration of such property unless it shall determine in its discretion
            that
            such restoration will increase the proceeds of liquidation of the related
            Mortgage Loan after reimbursement to itself for such expenses.

           

          (b)  Notwithstanding
            the foregoing provisions of this Section 4.16 or any other provision of
            this Agreement, with respect to any Mortgage Loan as to which the Servicer
            has
            received actual notice of, or has actual knowledge of, the presence of
            any toxic
            or hazardous substance on the related Mortgaged Property, the Servicer
            shall
            not, on behalf of the Owner, either (i) obtain title to such Mortgaged
            Property
            as a result of or in lieu of foreclosure or otherwise, or (ii) otherwise
            acquire
            possession of, or take any other action with respect to, such Mortgaged
            Property, if, as a result of any such action, the Owner would be considered
            to
            hold title to, to be a “mortgagee-in-possession” of, or to be an “owner” or
“operator” of such Mortgaged Property within the meaning of the Comprehensive
            Environmental Response, Compensation and Liability Act of 1980, as amended
            from
            time to time, or any comparable law, unless the Servicer has also previously
            determined, based on its reasonable judgment and a report prepared by
            a Person
            who regularly conducts environmental audits using customary industry
            standards,
            that:

           

          (1)  such
            Mortgaged Property is in compliance with applicable environmental laws
            or, if
            not, that it would be in the best economic interest of the Owner to take
            such
            actions as are necessary to bring the Mortgaged Property into compliance
            therewith; and

           

          (2)  there
            are
            no circumstances present at such Mortgaged Property relating to the use,
            management or disposal of any hazardous substances, hazardous materials,
            hazardous wastes, or petroleum-based materials for which investigation,
            testing,
            monitoring, containment, clean-up or remediation could be required under
            any
            federal, state or local law or regulation, or that if any such materials
            are
            present for which such action could be required, that it would be in
            the best
            economic interest of the Owner to take such actions with respect to the
            affected
            Mortgaged Property.

           

          The
            cost
            of the environmental audit report contemplated by this Section 4.16 shall
            be advanced by the Servicer, subject to the Servicer's right to be reimbursed
            therefor from the Collection Account as provided in Section 4.11(vi), such
            right of reimbursement being prior to the rights of Owner to receive
            any amount
            in the Collection Account received in respect of the affected Mortgage
            Loan or
            other Mortgage Loans.

           

          If
            the
            Servicer determines, as described above, that it is in the best economic
            interest of the Owner to take such actions as are necessary to bring
            any such
            Mortgaged Property into compliance with applicable environmental laws,
            or to
            take such action with respect to the containment, clean-up or remediation
            of
            hazardous substances, hazardous materials, hazardous wastes or petroleum-based
            materials affecting any such Mortgaged Property, then the Servicer shall
            take
            such action as it deems to be in the best economic interest of the Owner;
            provided that any amounts disbursed by the Servicer pursuant to this
            Section 4.16 shall constitute Servicing Advances, subject to
            Section 5.03(d). The cost of any such compliance, containment, clean-up or
            remediation shall be advanced by the Servicer, subject to the Servicer's
            right
            to be reimbursed therefor from the Collection Account as provided in
            Section 4.11(vi), such right of reimbursement being prior to the rights of
            Owner to receive any amount in the Collection Account received in respect
            of the
            affected Mortgage Loan or other Mortgage Loans.

           

          (c)  Proceeds
            received in connection with any Final Recovery Determination, as well
            as any
            recovery resulting from a partial collection of Insurance Proceeds, Liquidation
            Proceeds or condemnation proceeds, in respect of any Mortgage Loan, will
            be
            applied in the following order of priority: first, to unpaid Servicing
            Fees;
            second, to reimburse the Servicer or any Subservicer for any related
            unreimbursed Servicing Advances pursuant to Section 4.11(iii) and Advances
            pursuant to Section 4.11(ii); third, to accrued and unpaid interest on the
            Mortgage Loan, to the date of the Final Recovery Determination, or to
            the Due
            Date prior to the Remittance Date on which such amounts are to be distributed
            if
            not in connection with a Final Recovery Determination; and fourth, as
            a recovery
            of principal of the Mortgage Loan. The portion of the recovery so allocated
            to
            unpaid Servicing Fees shall be reimbursed to the Servicer or any Subservicer
            pursuant to Section 4.11(iii).

           

          
            	Section
                    4.17.  	
                    Release
                      of Mortgage Files.

                  

          

           

          (a)  Upon
            the
            payment in full of any Mortgage Loan, or the receipt by the Servicer
            of a
            notification that payment in full shall be escrowed in a manner customary
            for
            such purposes, the Servicer shall deliver to the Custodian with a copy
            to the
            Owner, in written (with two executed copies) or electronic format, a
            Request for
            Release in the form of Exhibit A hereto (which certification shall include
            a
            statement to the effect that all amounts received or to be received in
            connection with such payment which are required to be deposited in the
            Collection Account pursuant to Section 4.10 have been or will be so
            deposited) signed by a Servicing Officer (or in a mutually agreeable
            electronic
            format that will, in lieu of a signature on its face, originate from
            a Servicing
            Officer) and shall request delivery to it of the Mortgage File. Upon
            receipt of
            such certification and request, the Custodian shall, within three Business
            Days,
            release and send by overnight mail, at the expense of the Servicer, the
            related
            Mortgage File to the Servicer. The Owner agrees to indemnify the Servicer,
            out
            of its own funds, for any loss, liability or expense incurred by the
            Servicer as
            a proximate result of the Custodian's breach of its obligations pursuant
            to this
            Section 4.17. No expenses incurred in connection with any instrument of
            satisfaction or deed of reconveyance shall be chargeable to the Collection
            Account.

           

          (b)  From
            time
            to time and as appropriate for the servicing or foreclosure of any Mortgage
            Loan, including, for this purpose, collection under any insurance policy
            relating to the Mortgage Loans, the Custodian shall, upon any request
            made by or
            on behalf of the Servicer and delivery to the Custodian with a copy to
            Owner, in
            written (with two executed copies) or electronic format, of a Request
            for
            Release in the form of Exhibit A hereto signed by a Servicing Officer
            (or in a
            mutually agreeable electronic format that will, in lieu of a signature
            on its
            face, originate from a Servicing Officer), release the related Mortgage
            File to
            the Servicer within three Business Days, and the Owner shall, at the
            direction
            of the Servicer, execute such documents as shall be necessary to the
            prosecution
            of any such proceedings. Such Request for Release shall obligate the
            Servicer to
            return each and every document previously requested from the Mortgage
            File to
            the Custodian when the need therefor by the Servicer no longer exists,
            unless
            the Mortgage Loan has been liquidated and the Liquidation Proceeds relating
            to
            the Mortgage Loan have been deposited in the Collection Account or the
            Mortgage
            File or such document has been delivered to an attorney, or to a public
            trustee
            or other public official as required by law, for purposes of initiating
            or
            pursuing legal action or other proceedings for the foreclosure of the
            Mortgaged
            Property either judicially or non-judicially, and the Servicer has delivered,
            or
            caused to be delivered, to the Custodian with a copy to the Owner an
            additional
            Request for Release certifying as to such liquidation or action or proceedings.
            Upon the request of the Owner, the Servicer shall provide notice to the
            Owner of
            the name and address of the Person to which such Mortgage File or such
            document
            was delivered and the purpose or purposes of such delivery. Upon receipt
            of a
            Request for Release, in written (with two executed copies) or electronic
            format,
            from a Servicing Officer stating that such Mortgage Loan was liquidated
            and that
            all amounts received or to be received in connection with such liquidation
            that
            are required to be deposited into the Collection Account have been so
            deposited,
            or that such Mortgage Loan has become an REO Property, such Mortgage
            Loan shall
            be released by the Custodian to the Servicer or its designee within three
            Business Days.

           

          
            	Section
                    4.18.  	
                    Servicing
                      Compensation.

                  

          

           

          As
            compensation for the activities of the Servicer hereunder, the Servicer
            shall be
            entitled to the Servicing Fee with respect to each Mortgage Loan payable
            solely
            from payments of interest in respect of such Mortgage Loan, subject to
            Section 4.22. In addition, the Servicer shall be entitled to recover unpaid
            Servicing Fees out of Insurance Proceeds, Liquidation Proceeds or condemnation
            proceeds to the extent permitted by Section 4.11(iii) and out of amounts
            derived from the operation and sale of an REO Property to the extent
            permitted
            by Section 4.21. Except as provided in Section 9.07, the right to
            receive the Servicing Fee may not be transferred in whole or in part
            except in
            connection with the transfer of all of the Servicer's responsibilities
            and
            obligations under this Agreement; provided, however, that the Servicer
            may pay
            from the Servicing Fee any amounts due to a Subservicer pursuant to a
            Sub-Servicing Agreement entered into under Section 4.02.

           

          Additional
            servicing compensation in the form of assumption fees, late payment charges,
            insufficient funds charges, ancillary income or otherwise (other than
            Prepayment
            Charges) shall be retained by the Servicer only to the extent such fees
            or
            charges are received by the Servicer. The Servicer shall also be entitled
            pursuant to Section 4.11(iv) to withdraw from the Collection Account and
            pursuant to Section 4.21(b) to withdraw from any REO Account, as additional
            servicing compensation, interest or other income earned on deposits therein,
            subject to Section 4.12 and Section 4.21. The Servicer shall be
            required to pay all expenses incurred by it in connection with its servicing
            activities hereunder (including amounts required to be paid by the Servicer
            under the second paragraph of Section 4.14) and shall not be entitled
            to
            reimbursement therefor except as specifically provided herein.

           

          The
            Servicer shall be entitled to any Prepayment Interest Excess, which it
            may
            withdraw from the Collection Account pursuant to
            Section 4.11(viii).

           

          
            	Section
                    4.19.  	
                    Statement
                      as to Compliance.

                  

          

           

          (a)  The
            Servicer shall deliver to the Owner and the Master Servicer (as defined
            below),
            on or before March 1st
            (or if
            not a Business Day, the immediately preceding Business Day), of each
            year
            beginning on March 1, 2007, an Officer's Certificate, stating that (i)
            a review
            of the activities of the Servicer during the preceding calendar year
            and of
            performance under this Agreement or similar agreements has been made
            under such
            officer's supervision, and (ii) to the best of such officer's knowledge,
            based
            on such review, the Servicer has fulfilled all its obligations under
            this
            Agreement throughout such year, or, if there has been a default in the
            fulfillment of any such obligation, specifying each such default known
            to such
            officer and the nature and status thereof and the action being taken
            by the
            Servicer to cure such default.

           

          (b)  [Reserved]

           

          (c)  The
            Servicer shall indemnify and hold harmless the Master Servicer and its
            officers,
            directors, agents and affiliates from and against any losses, damages,
            penalties, fines, forfeitures, reasonable legal fees and related costs,
            judgments and other costs and expenses arising out of or based upon a
            breach by
            the Servicer or any of its officers, directors, agents or affiliates
            of its
            obligations under this Section 4.19 or the negligence, bad faith or willful
            misconduct of the Servicer in connection therewith. If the indemnification
            provided for herein is unavailable or insufficient to hold harmless the
            Master
            Servicer, then the Servicer agrees that it shall contribute to the amount
            paid
            or payable by the Master Servicer as a result of the losses, claims,
            damages or
            liabilities of the Master Servicer in such proportion as is appropriate
            to
            reflect the relative fault of the Master Servicer on the one hand and
            the
            Servicer on the other in connection with a breach of the Servicer's obligations
            under this Section 4.19 or the Servicer's negligence, bad faith or willful
            misconduct in connection therewith.

           

          
            	Section
                    4.20.  	
                    Independent
                      Public Accountants' Servicing Report.

                  

          

           

          Not
            later
            than March 1st
            following the end of each calendar year, commencing in 2007, the Servicer,
            at
            its expense, shall cause a nationally recognized firm of independent
            certified
            public accountants to furnish to the Servicer a report in a form acceptable
            for
            filing with the Securities and Exchange Commission as an exhibit to Form
            10-K or
            other required form, stating that (i) it has obtained a letter of representation
            regarding certain matters from the management of the Servicer which includes
            an
            assertion that the Servicer has complied with certain minimum residential
            mortgage loan servicing standards, identified in the Uniform Single Attestation
            Program for Mortgage Bankers established by the Mortgage Bankers Association
            of
            America, with respect to the servicing of residential mortgage loans
            during the
            most recently completed fiscal year and (ii) on the basis of an examination
            conducted by such firm in accordance with standards established by the
            American
            Institute of Certified Public Accountants, such representation is fairly
            stated
            in all material respects, subject to such exceptions and other qualifications
            that may be appropriate. In rendering its report such firm may rely,
            as to
            matters relating to the direct servicing of residential mortgage loans
            by
            Subservicers, upon comparable reports of firms of independent certified
            public
            accountants rendered on the basis of examinations conducted in accordance
            with
            the same standards (rendered within one year of such report) with respect
            to
            those Subservicers. Immediately upon receipt of such report, the Servicer
            shall
            furnish a copy of such report to the Owner and the Master Servicer, if
            applicable.

           

          
            	Section
                    4.21.  	
                    Title,
                      Management and Disposition of REO Property.

                  

          

           

          (a)  The
            deed
            or certificate of sale of any REO Property shall be taken in the name
            of the
            Owner, or its nominee, subject to applicable laws. The Servicer, on behalf
            of
            the Owner, shall sell any REO Property as soon as practicable and in
            any event
            no later than the end of the third full taxable year after the taxable
            year in
            which any REMIC acquires ownership of such REO Property for purposes
            of
            Section 860G(a)(8) of the Code or request from the Internal Revenue
            Service, no later than 60 days before the day on which the three-year
            grace
            period would otherwise expire, an extension of such three-year period,
            unless
            the Servicer shall have delivered to the Owner an Opinion of Counsel
            to the
            effect that the holding by a REMIC of such REO Property subsequent to
            three
            years after its acquisition will not result in the imposition on any
            such REMIC
            of taxes on “prohibited transactions” thereof, as defined in Section 860F
            of the Code, or cause any REMICs created in connection with the Mortgage
            Loans
            to fail to qualify as a REMIC under Federal law at any time. The Servicer
            shall
            manage, conserve, protect and operate each REO Property for the Owner
            solely for
            the purpose of its prompt disposition and sale in a manner which does
            not cause
            such REO Property to fail to qualify as “foreclosure property” within the
            meaning of Section 860G(a)(8) of the Code or result in the receipt by any
            REMICs created in connection with the Mortgage Loans of any “income from
            non-permitted assets” within the meaning of Section 860F(a)(2)(B) of the
            Code, or any “net income from foreclosure property” which is subject to taxation
            under the REMIC Provisions.

           

          (b)  The
            Servicer shall separately account for all funds collected and received
            in
            connection with the operation of any REO Property and shall establish
            and
            maintain, or cause to be established and maintained, with respect to
            REO
            Properties an account held in trust for the Owner (the “REO Account”), which
            shall be an Eligible Account. The Servicer shall be permitted to allow
            the
            Collection Account to serve as the REO Account, subject to separate ledgers
            for
            each REO Property. The Servicer shall be entitled to retain or withdraw
            any
            interest income paid on funds deposited in the REO Account.

           

          (c)  The
            Servicer shall have full power and authority, subject only to the specific
            requirements and prohibitions of this Agreement, to do any and all things
            in
            connection with any REO Property as are consistent with the manner in
            which the
            Servicer manages and operates similar property owned by the Servicer
            or any of
            its Affiliates, all on such terms and for such period (subject to the
            requirement of prompt disposition set forth in Section 4.21(a) as the
            Servicer deems to be in the best interests of Owner. In connection therewith,
            the Servicer shall deposit, or cause to be deposited in the clearing
            account in
            which it customarily deposits payments and collections on mortgage loans
            in
            connection with its mortgage loan servicing activities on a daily basis,
            and in
            no event more than one Business Day after the Servicer's receipt thereof,
            and
            shall thereafter deposit in the REO Account, in no event more than two
            Business
            Days after the Servicer's receipt thereof, all revenues received by it
            with
            respect to an REO Property and shall withdraw therefrom funds necessary
            for the
            proper operation, management and maintenance of such REO Property including,
            without limitation:

           

          (i)  all
            insurance premiums due and payable in respect of such REO Property;

           

          (ii)  all
            real
            estate taxes and assessments in respect of such REO Property that may
            result in
            the imposition of a lien thereon; and

           

          (iii)  all
            costs
            and expenses necessary to maintain, operate or dispose of such REO
            Property.

           

          To
            the
            extent that amounts on deposit in the REO Account with respect to an
            REO
            Property are insufficient for the purposes set forth in clauses (i) through
            (iii) above with respect to such REO Property, the Servicer shall advance
            from
            its own funds such amount as is necessary for such purposes if, but only
            if, the
            Servicer would make such advances if the Servicer owned the REO Property
            and if
            in the Servicer's judgment, the payment of such amounts will be recoverable
            from
            the rental or sale of the REO Property.

           

          Notwithstanding
            the foregoing, the Servicer shall not:

           

          (A)  enter
            into, renew or extend any New Lease with respect to any REO Property,
            if the New
            Lease by its terms will give rise to any income that does not constitute
            Rents
            from Real Property;

           

          (B)  authorize
            any amount to be received or accrued under any New Lease other than amounts
            that
            will constitute Rents from Real Property;

           

          (C)  authorize
            any construction on any REO Property, other than the completion of a
            building or
            other improvement thereon, and then only if more than ten percent of
            the
            construction of such building or other improvement was completed before
            default
            on the related Mortgage Loan became imminent, all within the meaning
            of
            Section 856(e)(4)(B) of the Code; or

           

          (D)  authorize
            any Person to Directly Operate any REO Property on any date more than
            90 days
            after its date of acquisition by the Owner;

           

          unless,
            in any such case, the Servicer has obtained an Opinion of Counsel, provided
            to
            the Owner to the effect that such action will not cause such REO Property
            to
            fail to qualify as “foreclosure property” within the meaning of
            Section 860G(a)(8) of the Code at any time that it is held by any REMIC, in
            which case the Servicer may take such actions as are specified in such
            Opinion
            of Counsel.

           

          The
            Servicer may contract with any Subcontractor for the operation and management
            of
            any REO Property, provided that:

           

          (1)  the
            terms
            and conditions of any such contract shall not be inconsistent
            herewith;

           

          (2)  any
            such
            contract shall require, or shall be administered to require, that the
            Subcontractor pay all costs and expenses incurred in connection with
            the
            operation and management of such REO Property, including those listed
            above, and
            remit all related revenues (net of such costs and expenses) to the Servicer
            as
            soon as practicable, but in no event later than thirty days following
            the
            receipt thereof by such Subcontractor;

           

          (3)  none
            of
            the provisions of this Section 4.21(c) relating to any such contract or to
            actions taken through any such Subcontractor shall be deemed to relieve
            the
            Servicer of any of its duties and obligations to the Owner with respect
            to the
            operation and management of any such REO Property; and

           

          (4)  the
            Servicer shall be obligated with respect thereto to the same extent as
            if it
            alone were performing all duties and obligations in connection with the
            operation and management of such REO Property.

           

          The
            Servicer shall be entitled to enter into any agreement with any Subcontractor
            performing services for it related to its duties and obligations hereunder
            for
            indemnification of the Servicer by such Subcontractor, and nothing in
            this
            Agreement shall be deemed to limit or modify such indemnification. The
            Servicer
            shall be solely liable for all fees owed by it to any such Subcontractor,
            irrespective of whether the Servicer's compensation pursuant to
            Section 4.18 is sufficient to pay such fees; provided, however, that to the
            extent that any payments made by such Subcontractor would constitute
            Servicing
            Advances if made by the Servicer, such amounts shall be reimbursable
            as
            Servicing Advances made by the Servicer.

           

          (d)  In
            addition to the withdrawals permitted under Section 4.21(c), the Servicer
            may from time to time make withdrawals from the REO Account for any REO
            Property: (i) to pay itself or any Subservicer unpaid Servicing Fees
            in respect
            of the related Mortgage Loan; and (ii) to reimburse itself or any Subservicer
            for unreimbursed Servicing Advances and Advances made in respect of such
            REO
            Property or the related Mortgage Loan. On the Remittance Date, the Servicer
            shall withdraw from each REO Account maintained by it for distribution
            in
            accordance with Section 5.03, the income from the related REO Property
            received during the prior calendar month, net of any withdrawals made
            pursuant
            to Section 4.21(c) or this Section 4.21(d).

           

          (e)  Subject
            to the time constraints set forth in Section 4.21(a), each REO Disposition
            shall be carried out by the Servicer in a manner, at such price and upon
            such
            terms and conditions as shall be normal and usual in the servicing standard
            set
            forth in Section 4.01.

           

          (f)  The
            Servicer shall file information returns with respect to the receipt of
            mortgage
            interest received in a trade or business, reports of foreclosures and
            abandonments of any Mortgaged Property and cancellation of indebtedness
            income
            with respect to any Mortgaged Property as required by Sections 6050H,
            6050J and
            6050P of the Code, respectively. Such reports shall be in form and substance
            sufficient to meet the reporting requirements imposed by such Sections
            6050H,
            6050J and 6050P of the Code.

           

          
            	Section
                    4.22.  	
                    Obligations
                      of the Servicer in Respect of Prepayment Interest
                      Shortfalls.

                  

          

           

          Not
            later
            than 1:00 p.m. New York time on each Remittance Date, the Servicer shall
            remit
            to the Owner an amount (“Compensating Interest”) equal to the lesser of (A) the
            aggregate of the Prepayment Interest Shortfalls for the related Remittance
            Date
            and (B) one-half of its aggregate Servicing Fee received in the related Due
            Period. The Servicer shall not have the right to reimbursement for any
            amounts
            remitted to the Owner in respect of Compensating Interest. The Servicer
            shall
            not be obligated to pay Compensating Interest with respect to Relief
            Act
            Interest Shortfalls.

           

          
            	Section
                    4.23.  	
                    Solicitations.

                  

          

           

          From
            and
            after the Closing Date, the Servicer agrees that it will not take any
            action or
            permit or cause any action to be taken by any of its agents and Affiliates,
            or
            by any independent contractors or independent mortgage brokerage companies
            on
            the Servicer's behalf, to personally, by telephone or mail, solicit the
            Mortgagor under any Mortgage Loan for the purpose of refinancing such
            Mortgage
            Loan; provided, that the Servicer may solicit any Mortgagor for whom
            the
            Servicer has received a request for verification of mortgage, a request
            for
            demand for payoff, a mortgagor initiated written or verbal communication
            indicating a desire to prepay the related Mortgage Loan, another mortgage
            company has pulled a credit report on the mortgagor or the mortgagor
            initiates a
            title search; provided further, it is understood and agreed that promotions
            undertaken by the Servicer or any of its Affiliates which (i) concern
            optional
            insurance products or other additional products or (ii) are directed
            to the
            general public at large, including, without limitation, mass mailings
            based on
            commercially acquired mailing lists, newspaper, radio and television
            advertisements shall not constitute solicitation under this Section,
            nor is the
            Servicer prohibited from responding to unsolicited requests or inquiries
            made by
            a Mortgagor or an agent of a Mortgagor. Furthermore, the Servicer shall
            be
            permitted to include in its monthly statements to borrowers or otherwise,
            statements regarding the availability of the Servicer's counseling services
            with
            respect to refinancing mortgage loans.

           

          Section
            4.24.  Obligations
            of the Servicer in Respect of Mortgage Rates and Monthly
            Payments.

           

          In
            the
            event that a shortfall in any collection on or liability with respect
            to any
            Mortgage Loan results from or is attributable to adjustments to Mortgage
            Rates,
            Monthly Payments or Unpaid Principal Balances that were made by the Servicer
            in
            a manner not consistent with the terms of the related Mortgage Note and
            this
            Agreement, the Servicer, upon discovery or receipt of notice thereof,
            immediately shall deliver to the Owner for deposit in the Custodial Account
            from
            its own funds the amount of any such shortfall and, with respect to a
            Securitization Transaction, shall indemnify and hold harmless the trust
            fund,
            the trustee, the securities administrator, the master servicer, the depositor
            and any successor servicer in respect of any such liability. Such indemnities
            shall survive the termination or discharge of this Agreement. Notwithstanding
            the foregoing, this Section 4.24 shall not limit the ability of the Servicer
            to
            seek recovery of any such amounts from the related Mortgagor under the
            terms of
            the related Mortgage Note and Mortgage, to the extent permitted by applicable
            law.

           

          Section
            4.25.  The
            Servicer Indemnification.

           

          With
            respect to any Securitization Transaction, the Servicer agrees to indemnify
            the
            certificate insurer, trustee, master servicer and the securities administrator
            from, and hold the trustee, master servicer and the securities administrator
            harmless against, any loss, liability or expense (including reasonable
            attorney’s fees and expenses) incurred by any such Person by reason of the
            Servicer’s willful misfeasance, bad faith or gross negligence in the performance
            of its duties under this Agreement or by reason of the Servicer’s reckless
            disregard of its obligations and duties under this Agreement. Such indemnity
            shall survive the termination or discharge of this Agreement and the
            resignation
            or removal of the certificate insurer, the Servicer, the trustee, the
            master
            servicer and the securities administrator. Any payment hereunder made
            by the
            Servicer to any such Person shall be from the Servicer’s own funds, without
            reimbursement from the Collection Account therefor.

           

          Section
            4.26.  Certificate
            Insurer Access.

           

          With
            respect to any Securitization Transaction, upon the occurrence of a trigger
            event (as defined in the related pooling and servicing agreement), the
            Servicer
            shall afford the certificate insurer access to its books and records
            concerning
            the servicing of the Mortgage Loans, and shall make servicing officers
            available
            to the certificate insurer to discuss the servicing of the Mortgage Loans,
            upon
            reasonable prior notice to the Servicer, and during the Servicer’s normal
            business hours.

           

          ARTICLE
            V

           

          PAYMENTS
            TO THE OWNER

           

          
            	Section
                    5.01.  	
                    Remittances.

                  

          

           

          On
            each
            Remittance Date, the Servicer shall remit to the Owner (A)(i) all amounts
            credited to the Collection Account as of the close of business on the
            preceding
            Determination Date (net of charges against or withdrawals from the Collection
            Account pursuant to Section 4.11) plus (ii) all Advances, if any, which the
            Servicer is obligated to distribute pursuant to Section 5.03; minus (B) (x)
            any amounts attributable to voluntary Principal Prepayments in full received
            after the last day of the Prepayment Period immediately preceding the
            related
            Remittance Date and (y) any amounts attributable to Monthly Payments
            collected
            but due on a Due Date or Dates subsequent to the preceding Determination
            Date.

           

          All
            remittances made to the Owner on each Remittance Date shall be made by
            wire
            transfer of immediately available funds to the account designated by
            the Owner
            at a bank or other entity having appropriate facilities therefor identified
            by
            the Owner to the Servicer at least two (2) Business Days prior to such
            Remittance Date.

           

          With
            respect to any remittance received by the Owner after the Business Day
            on which
            such payment was due, the Servicer shall pay to the Owner, with such
            remittance,
            interest on any such late payment at an annual rate equal to the federal
            funds
            rate as is publicly announced from time to time, but in no event greater
            than
            the maximum amount permitted by applicable law. Such interest shall be
            paid by
            the Servicer to the Owner on the date such late payment is made and shall
            cover
            the period commencing with the day following the Business Day on which
            such
            payment was due and ending with the Business Day on which such payment
            is made,
            both inclusive. Such interest shall be remitted along with such late
            payment.
            The payment by the Servicer of any such interest shall not be deemed
            an
            extension of time for payment or a waiver of any Event of Default.

           

          
            	Section
                    5.02.  	
                    Reports.

                  

          

           

          Not
            later
            than the 10th
            day of
            the each month (or if such 10th
            day is
            not a Business Day, the preceding Business Day), the Servicer shall deliver
            to
            the Owner by telecopy or electronic mail (or by such other means as the
            Servicer
            and the Owner may agree from time to time) a Remittance Report with respect
            to
            the related Remittance Date. Not later than the 10th
            day of
            each month (or if such 10th
            day is
            not a Business Day, the preceding Business Day), the Servicer shall deliver
            or
            cause to be delivered to the Owner in addition to the information provided
            on
            the Remittance Report, such other information reasonably available to
            it with
            respect to the Mortgage Loans as the Owner may reasonably require.

           

          On
            the
            second Business Day following each Determination Date, but in no event
            later
            than the 18th day of each month (or, if such 18th day is not a Business
            Day, the
            preceding Business Day), the Servicer shall deliver to the Master Servicer
            by
            electronic mail (or by such other means as the Servicer and the Master
            Servicer
            may agree from time to time) a prepayment report with respect to the
            related
            Remittance Date. Such prepayment report shall include such information
            with
            respect to the prepayment charges as the Master Servicer may reasonable
            require.

           

          The
            Servicer is authorized to make loan-level data with respect to the Mortgage
            Loans (with personal information subject to the Gramm-Leach-Bliley Act
            and state
            consumer privacy statutes suppressed) publicly available on an SPS
            website.

           

          The
            Servicer shall prepare and file any and all tax returns, information
            statements
            or other filings required to be delivered to any governmental taxing
            authority
            pursuant to any applicable law with respect to the Mortgage Loans.

           

          
            	Section
                    5.03.  	
                    Advances.

                  

          

           

          (a)  The
            amount of Advances to be made by the Servicer for any Remittance Date
            shall
            equal, subject to Section 5.03(d), the sum of (i) the aggregate amount of
            scheduled Monthly Payments (net of the related Servicing Fee), due during
            the
            related Due Period in respect of the Mortgage Loans, which scheduled
            Monthly
            Payments were delinquent on a contractual basis as of the Close of Business
            on
            the related Determination Date; provided however, that with respect to
            any
            Balloon Mortgage Loan that is delinquent on its maturity date, the 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 5.03 with respect
            to such Balloon Mortgage Loan in an amount equal to an assumed scheduled
            principal and interest that would otherwise be due based on the original
            amortization schedule for that Balloon Mortgage Loan (with interest at
            the Net
            Mortgage Rate) and (ii) with respect to each REO Property, which REO
            Property
            was acquired during or prior to the related Due Period and as to which
            REO
            Property an REO Disposition did not occur during the related Due Period,
            an
            amount equal to the excess, if any, of the Monthly Payment (with each
            interest
            portion thereof net of the related Servicing Fee) that would have been
            due on
            the related Due Date in respect of the related Mortgage Loan, over the
            net
            income from such REO Property transferred to the Collection Account pursuant
            to
            Section 4.21 for remittance on such Remittance Date.

           

          (b)  On
            or
            before 1:00 p.m. New York time on the Remittance Date, the Servicer shall
            remit
            in immediately available funds to the Owner an amount equal to the aggregate
            amount of Advances, if any, to be made in respect of the Mortgage Loans
            and REO
            Properties on such Remittance Date either (i) from its own funds or (ii)
            from
            the Collection Account, to the extent of funds held therein for future
            distribution (in which case it will cause to be made an appropriate entry
            in the
            records of the Collection Account that amounts held for future distribution
            have
            been, as permitted by this Section 5.03, used by the Servicer in discharge
            of any such Advance) or (iii) in the form of any combination of (i) and
            (ii)
            aggregating the total amount of Advances to be made by the Servicer with
            respect
            to the Mortgage Loans and REO Properties. Any amounts held for future
            distribution used by the Servicer to make an Advance as permitted in
            the
            preceding sentence shall be appropriately reflected in the Servicer's
            records
            and replaced by the Servicer by deposit in the Collection Account on
            or before
            any future Remittance Date to the extent that the Available Funds for
            such
            Remittance Date (determined without regard to Advances to be made on
            the
            Remittance Date) shall be less than the total amount that would be distributed
            to the Owner on such Remittance Date if such amounts held for future
            distributions had not been so used to make Advances. The Owner will provide
            notice to the Servicer by telecopy by the Close of Business on any Remittance
            Date in the event that the amount remitted by the Servicer to the Owner
            on such
            date is less than the Advances required to be made by the Servicer for
            such
            Remittance Date, as set forth in the related Remittance Report.

           

          (c)  The
            obligation of the Servicer to make such Advances is mandatory, notwithstanding
            any other provision of this Agreement but subject to (d) below, and,
            with
            respect to any Mortgage Loan, shall continue until the Mortgage Loan
            is paid in
            full or until the recovery of all Liquidation Proceeds thereon.

           

          (d)  Notwithstanding
            anything herein to the contrary, no Advance or Servicing Advance shall
            be
            required to be made hereunder by the Servicer if such Advance or Servicing
            Advance would, if made, constitute a Nonrecoverable Advance. The determination
            by the Servicer that it has made a Nonrecoverable Advance or that any
            proposed
            Advance or Servicing Advance, if made, would constitute a Nonrecoverable
            Advance, shall be evidenced by an Officers' Certificate of the Servicer
            delivered to the Owner. In addition, the Servicer shall not be obligated
            to make
            any Advances with respect to Relief Act Interest Shortfalls.

           

          ARTICLE
            VI

           

          THE
            SERVICER

           

          
            	Section
                    6.01.  	
                    Liability
                      of the Servicer.

                  

          

           

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

           

          
            	Section
                    6.02.  	
                    Merger
                      or Consolidation of, or Assumption of the Obligations of, the
                      Servicer.

                  

          

           

          Any
            entity into which the Servicer may be merged or consolidated, or any
            entity
            resulting from any merger, conversion or consolidation to which the Servicer
            shall be a party, or any corporation succeeding to the business or all
            of the
            assets of the Servicer, shall be the successor of the 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 Servicer shall
            satisfy
            all the requirements of Section 6.06 with respect to the qualifications of
            a successor Servicer.

           

          
            	Section
                    6.03.  	
                    Limitation
                      on Liability of the Servicer and Others.

                  

          

           

          Neither
            the Servicer nor any of the directors or officers or employees or agents
            of the
            Servicer shall be under any liability to the Owner for any action taken
            or for
            refraining from the taking of any action by the Servicer in good faith
            pursuant
            to this Agreement, or for errors in judgment; provided, however, that
            this
            provision shall not protect the Servicer or any such Person against any
            liability which would otherwise be imposed by reason of its willful misfeasance,
            bad faith or negligence in the performance of duties of the Servicer
            or by
            reason of its reckless disregard of its obligations and duties of the
            Servicer
            hereunder. The Servicer and any director or officer or employee or agent
            of the
            Servicer may rely in good faith on any document of any kind prima facie
            properly
            executed and submitted by any Person respecting any matters arising hereunder.
            The Servicer and any director or officer or employee or agent of the
            Servicer
            shall be indemnified by the Owner and held harmless against any loss,
            liability
            or expense incurred in connection with any legal action relating to this
            Agreement or any loss, liability or expense incurred, other than any
            loss,
            liability or expense related to any specific Mortgage Loan or Mortgage
            Loans
            (except as any such loss, liability or expense shall be otherwise reimbursable
            pursuant to this Agreement) and any loss, liability or expense incurred
            by
            reason of its willful misfeasance, bad faith or negligence in the performance
            of
            the Servicer's duties hereunder or by reason of its reckless disregard
            of
            obligations and duties hereunder. The Servicer shall not be under any
            obligation
            to appear in, prosecute or defend any legal action unless such action
            is related
            to its respective duties under this Agreement and, in its opinion, does
            not
            involve it in any expense or liability; provided, however, that the Servicer
            may
            in its discretion undertake any such action which it may deem necessary
            or
            desirable with respect to this Agreement and the rights and duties of
            the
            parties hereto and the interests of the Owner hereunder. In such event,
            the
            reasonable legal expenses and costs of such action and any liability
            resulting
            therefrom (except any loss, liability or expense incurred by reason of
            willful
            misfeasance, bad faith or gross negligence in the performance of duties
            hereunder or by reason of reckless disregard of obligations and duties
            hereunder) shall be expenses, costs and liabilities of the Owner, and
            the
            Servicer shall be entitled to be reimbursed therefor from the Collection
            Account
            as and to the extent provided in Section 4.11. The Servicer's right to
            indemnity
            or reimbursement pursuant to this Section shall survive any resignation or
            termination of the Servicer pursuant to Section 6.04 or 7.01 with respect
            to any losses, expenses, costs or liabilities arising prior to such resignation
            or termination (or arising from events that occurred prior to such resignation
            or termination).

           

          
            	Section
                    6.04.  	
                    Servicer
                      Not to Resign.

                  

          

           

          Subject
            to the provisions of Section 7.01 and Section 6.06, the Servicer shall
            not resign from the obligations and duties hereby imposed on it except
            (i) upon
            determination that the performance of its obligations or duties hereunder
            are no
            longer permissible under applicable law or are in material conflict by
            reason of
            applicable law with any other activities carried on by it or its subsidiaries
            or
            Affiliates, the other activities of the Servicer so causing such a conflict
            being of a type and nature carried on by the Servicer or its subsidiaries
            or
            Affiliates at the date of this Agreement or (ii) upon satisfaction of
            the
            following conditions: (a) the Servicer has proposed a successor servicer
            to the
            Owner in writing and such proposed successor servicer is acceptable to
            the Owner
            and (b) if any Mortgage Loan has been subject to a Securitization Transaction,
            (1) each Rating Agency shall have delivered a letter to the related trustee
            prior to the appointment of the successor servicer stating that the proposed
            appointment of such successor servicer as Servicer hereunder will not
            result in
            the reduction or withdrawal of the then current rating of any certificates
            issued with respect to such Securitization Transaction, and (2) the Servicer
            has
            obtained the prior written consent of the trustee and the certificate
            insurer,
            which consent shall not be unreasonably withheld; provided that in each
            case,
            there must be delivered to the trustee and the master servicer a letter
            from
            each Rating Agency to the effect that such transfer of servicing or sale
            or
            disposition of assets will not result in a qualification, withdrawal
            or
            downgrade of the then-current rating of any of the certificates (and
            with
            respect to the insured certificates, without regard to the certificate
            insurance
            policy). Notwithstanding the foregoing, no such resignation by the Servicer
            shall become effective until such successor servicer or, in the case
            of (i)
            above, the Owner shall have assumed the Servicer's responsibilities and
            obligations hereunder or the Owner shall have designated a successor
            servicer in
            accordance with Section 6.06. Any such resignation shall not relieve the
            Servicer of responsibility for any of the obligations specified in Sections
            7.01
            and 6.06 as obligations that survive the resignation or termination of
            the
            Servicer. Any such determination permitting the resignation of the Servicer
            shall be evidenced by an Opinion of Counsel to such effect delivered
            to the
            Owner.

           

          Notwithstanding
            anything to the contrary herein, for so long as Select Portfolio Servicing,
            Inc.
            is the Servicer hereunder, it may pledge or assign as collateral all
            its rights,
            title and interest under this Agreement relating to the servicing and
            administration of the Mortgage Loans to a lender (the “Lender”), provided,
            that:

           

          (1) upon
            an
            Event of Default and receipt of a notice of termination by Select Portfolio
            Servicing, Inc., the Lender may direct Select Portfolio Servicing, Inc.
            or its
            designee to appoint a successor servicer pursuant to the provisions,
            and subject
            to the conditions, set forth in Section 6.06 regarding Select Portfolio
            Servicing, Inc.’s appointment of a successor servicer;

           

          (2) the
            Lender’s rights are subject to this Agreement; and

           

          (3) Select
            Portfolio Servicing, Inc. shall remain subject to termination as servicer
            under
            this Agreement pursuant to the terms hereof.

           

          
            	Section
                    6.05.  	
                    Delegation
                      of Duties.

                  

          

           

          In
            the
            ordinary course of business, the Servicer at any time may delegate any
            of its
            duties hereunder to any Person, including any of its Affiliates, who
            agrees to
            conduct such duties in accordance with standards comparable to those
            set forth
            in Section 4.01. Such delegation shall not relieve the Servicer of its
            liabilities and responsibilities with respect to such duties and shall
            not
            constitute a resignation within the meaning of Section 6.04. Except as
            provided in Section 4.02, no such delegation is permitted that results in
            the delegee subservicing any Mortgage Loans. The Servicer shall provide
            the
            Owner with reasonable prior written notice prior to the delegation of
            any of its
            duties to any Person other than any of the Servicer's Affiliates or their
            respective successors and assigns.

           

          
            	Section
                    6.06.  	
                    Successor
                      to the Servicer.

                  

          

           

          (a)  Upon
            resignation or termination of the Servicer pursuant to Section 7.01, 8.01
            or 6.04, the Owner (or such other successor Servicer as is approved by
            the
            Owner) shall be the successor in all respects to the Servicer in its
            capacity as
            servicer under this Agreement and the transactions set forth or provided
            for
            herein and shall be subject to all the responsibilities, duties and liabilities
            relating thereto placed on the Servicer by the terms and provisions hereof
            arising on and after its succession. Notwithstanding the above, (i) if
            the Owner
            is unwilling to act as successor Servicer or (ii) if the Owner is legally
            unable
            so to act, the Owner shall appoint or petition a court of competent jurisdiction
            to appoint a successor to the Servicer provided that such successor servicer
            shall: (1) be an established housing and home finance institution, bank
            or other
            mortgage loan or home equity loan servicer having a net worth of not
            less than
            $50,000,000; (2) be an established mortgage loan servicing institution
            that is a
            Fannie Mae and Freddie Mac approved seller/servicer; (3) with respect
            to any
            Securitization Transaction, be approved by each Rating Agency by a written
            confirmation from each Rating Agency that the appointment of such successor
            servicer would not result in the reduction or withdrawal of the then
            current
            rating of any outstanding class of certificates (without regard to the
            certificate insurance policy); (4) with respect to any Securitization
            Transaction, be reasonably acceptable to the certificate insurer and
            (5) shall
            assume all or any part of the responsibilities, duties or liabilities
            of the
            Servicer hereunder. 

           

          In
            connection with such appointment and assumption, the successor shall
            be entitled
            to receive compensation out of payments on Mortgage Loans in an amount
            equal to
            the compensation which the Servicer would otherwise have received pursuant
            to
            Section 4.18 (or such other compensation as the Owner and such successor
            shall agree, not to exceed the Servicing Fee). The appointment of a successor
            Servicer shall not affect any liability of the predecessor Servicer which
            may
            have arisen under this Agreement prior to its termination as Servicer
            to pay any
            deductible under an insurance policy pursuant to Section 4.14 or to
            reimburse the Owner pursuant to Section 4.06), nor shall any successor
            Servicer be liable for any acts or omissions of the predecessor Servicer
            or for
            any breach by such Servicer of any of its representations or warranties
            contained herein or in any related document or agreement. The Owner and
            such
            successor shall take such action, consistent with this Agreement, as
            shall be
            necessary to effectuate any such succession. All Servicing Transfer Costs
            shall
            be paid by the predecessor Servicer upon presentation of reasonable
            documentation of such costs, and if such predecessor Servicer defaults
            in its
            obligation to pay such costs, such costs shall be paid by the successor
            Servicer.

           

          (b)  Any
            successor to the Servicer shall during the term of its service as servicer
            continue to service and administer the Mortgage Loans for the benefit
            of Owner,
            and maintain in force a policy or policies of insurance covering errors
            and
            omissions in the performance of its obligations as Servicer hereunder
            and a
            fidelity bond in respect of its officers, employees and agents to the
            same
            extent as the Servicer is so required pursuant to
            Section 4.14.

           

          
            	Section
                    6.07.  	
                    Inspection.

                  

          

           

          The
            Servicer, in its capacity as Servicer, shall afford the Owner, upon reasonable
            notice, during normal business hours, access to all records maintained
            by the
            Servicer in respect of its rights and obligations hereunder and access
            to
            officers of the Servicer responsible for such obligations. Upon request,
            the
            Servicer shall furnish to the Owner its most recent publicly available
            financial
            statements and such other information relating to its capacity to perform
            its
            obligations under this Agreement.

           

          ARTICLE
            VII

           

          DEFAULT

           

          
            	Section
                    7.01.  	
                    Events
                      of Default.

                  

          

           

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

           

          (i)  (A) The
            failure by the Servicer to make any Advance which it is required to make
            hereunder; (B) any other failure by the Servicer to deposit in the
            Collection Account any deposit required to be made under the terms of
            this
            Agreement; (C) the failure by the Servicer to remit to the Owner any
            payment
            required to be made under the terms of this Agreement which, in each
            case,
            continues unremedied for a period of one Business Day after the date
            upon which
            written notice of such failure shall have been given to the Servicer;
            

           

          (ii)  The
            failure by the Servicer to make any required Servicing Advance which
            failure
            continues unremedied for a period of 30 days, or the failure by the Servicer
            duly to observe or perform, in any material respect, any other covenants,
            obligations or agreements of the Servicer as set forth in this Agreement,
            which
            failure continues unremedied for a period of 30 days, in either case,
            after the
            date (A) on which written notice of such failure, requiring the same
            to be
            remedied, shall have been given to the Servicer or (B) of actual knowledge
            of
            such failure by a Servicing Officer of the Servicer; 

           

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

           

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

           

          (v)  The
            Servicer shall cease to meet the requirements to remain a Fannie Mae
            or Freddie
            Mac servicer or a HUD approved mortgagee;

           

          (vi)  The
            Servicer shall fail to duly perform within the required time period,
            its
            obligations under Sections 4.19 and 4.20 which failure continues unremedied
            for
            a period of ten (10) days after the date on which written notice of such
            failure, requiring the same to be remedied, shall have been given to
            the
            Servicer by any party to this Servicing Agreement or by any master servicer
            responsible for master servicing the Mortgage Loans pursuant to a securitization
            of such Mortgage Loans; 

           

          (vii)  The
            Servicer shall have been declared in material default under any consent
            agreement entered into with the Federal Trade Commission, HUD or any
            state
            regulatory authority, and such default (a) is not cured within forty-five
            days
            (45) days of the declaration thereof (provided that such period shall
            be
            extended with the consent of the Owner, which consent shall not be unreasonably
            withheld, so long as the Servicer is actively and diligently working
            to cure
            such default), or (b) results in the downgrade of any certificates or
            notes
            issued in connection with a Securitization Transaction; 

           

          (viii)  The
            Servicer fails to maintain, at a minimum, its “average” or equivalent servicer
            rating from each of Standard and Poor’s Rating Services, Moody’s Investors
            Service Inc. and Fitch Ratings; or

           

          (ix)  The
            Servicer shall fail to duly perform, within the required time period,
            its
            obligations under Sections 10.04 and 10.05.

           

          (b)  then,
            and
            in each and every such case, so long as an Event of Default shall not
            have been
            remedied within the applicable grace period, the Owner may (in addition
            to
            whatever rights the Owner may have at law or equity to damages), by notice
            then
            given in writing to the Servicer, terminate all of the rights and obligations
            of
            the Servicer as servicer under this Agreement. The Servicer agrees to
            cooperate
            with the Owner (or the applicable successor Servicer) in effecting the
            termination of the responsibilities and rights of the Servicer hereunder,
            including, without limitation, the delivery to the Owner of all documents
            and
            records requested by it to enable it to assume the Servicer's functions
            under
            this Agreement within ten Business Days subsequent to such notice, the
            transfer
            within one Business Day subsequent to such notice to the Owner (or the
            applicable successor Servicer) for the administration by it of all cash
            amounts
            or Permitted Investments that shall at the time be held by the Servicer
            and to
            be deposited by it in the Collection Account, any REO Account or any
            Servicing
            Account or that have been deposited by the Servicer in such accounts
            or
            thereafter received by the Servicer with respect to the Mortgage Loans
            or any
            REO Property received by the Servicer. All reasonable costs and expenses
            (including attorneys' fees) incurred in connection with transferring
            the
            Servicing Files to the successor Servicer and amending this Agreement
            to reflect
            such succession as Servicer pursuant to this Section shall be paid by the
            predecessor Servicer upon presentation of reasonable documentation of
            such costs
            and expenses.

           

          Notwithstanding
            the termination of the Servicer hereunder, the Servicer shall be entitled
            to
            reimbursement of all unpaid Servicing Fees and all unreimbursed Advances
            and
            Servicing Advances in the manner and at the times set forth herein.
            Notwithstanding the foregoing, Select Portfolio Servicing, Inc. shall
            have no
            right to direct the manner in which the servicing and administration
            of the
            Mortgage Loans is performed by a successor Servicer, have any right to
            consent
            to any action to be taken by a successor Servicer or have the right to
            terminate
            any successor Servicer.

           

          
            	Section
                    7.02.  	
                    Waiver
                      of Defaults.

                  

          

           

          The
            Owner
            may waive any events permitting removal of the Servicer as servicer pursuant
            to
            this Article VII. Upon any waiver of a past default, such default shall
            cease to
            exist and any Event of Default arising therefrom shall be deemed to have
            been
            remedied for every purpose of this Agreement. No such waiver shall extend
            to any
            subsequent or other default or impair any right consequent thereto except
            to the
            extent expressly so waived.

           

          
            	Section
                    7.03.  	
                    Survivability
                      of Servicer Liabilities.

                  

          

           

          Notwithstanding
            anything herein to the contrary, upon termination of the Servicer hereunder,
            any
            liabilities of the Servicer which accrued prior to such termination shall
            survive such termination.

           

          ARTICLE
            VIII

           

          TERMINATION

           

          
            	Section
                    8.01.  	
                    Termination.

                  

          

           

          The
            Owner
            may terminate, at its sole option, any rights the Servicer may have hereunder,
            without cause. Any such notice of termination shall be in writing and
            delivered
            to the Servicer by registered mail as provided in Section 9.03.

           

          
            	Section
                    8.02.  	
                    Removal
                      of Mortgage Loans from Inclusion under this Agreement upon
                      a Whole Loan
                      Transfer or a Securitization Transaction on One or More Reconstitution
                      Dates.

                  

          

           

          The
            Servicer and the Owner agree that with respect to some or all of the
            Mortgage
            Loans, the Owner may effect either:

           

          (a) one
            or
            more Whole Loan Transfers; and/or

           

          (b) one
            or
            more Securitization Transactions.

           

          With
            respect to each Whole Loan Transfer or Securitization Transaction, as
            the case
            may be, entered into by the Owner, the Servicer agrees: 

           

          (i) to
            cooperate fully with the Owner and any prospective purchaser with respect
            to all
            reasonable requests and due diligence procedures and with respect to
            the
            preparation (including, but not limited to, the endorsement, delivery,
            assignment, and execution) of the Mortgage Loan Documents and other related
            documents, and with respect to servicing requirements reasonably requested
            by
            the rating agencies and credit enhancers;

           

          (ii) to
            execute all Reconstitution Agreements provided that each of the Servicer
            and the
            Owner is given an opportunity to review and reasonably negotiate in good
            faith
            the content of such documents not specifically referenced or provided
            for
            herein;

           

          (iii) to
            deliver to the Owner such information, reports, letters and certifications
            as
            are required pursuant to Article X and to indemnify the Owner and its
            affiliates
            as set forth in Article X;

           

          
            	(1)  	
                    to
                      deliver to, and at the request of, the Owner for inclusion
                      in any
                      prospectus or other offering material such publicly available
                      information
                      regarding the Servicer, its financial condition and its mortgage
                      loan
                      delinquency, foreclosure and loss experience and any additional
                      information requested by the Owner, and to deliver to the Owner
                      any
                      similar nonpublic, unaudited financial information, in which
                      case the
                      Owner shall bear the cost of having such information audited
                      by certified
                      public accountants if the Owner desires such an audit, or as
                      is otherwise
                      reasonably requested by the Owner and which the Servicer is
                      capable of
                      providing without unreasonable effort or expense, and to indemnify
                      the
                      Owner and its affiliates for material misstatements or omissions
                      contained
                      (i) in such information and (ii) on the Mortgage Loan
                      Schedule;

                  

          

           

          
            	(2)  	
                    to
                      deliver to the Owner and to any Person designated by the Owner,
                      at the
                      Owner’s expense, such statements and audit letters of reputable,
                      certified
                      public accountants pertaining to information provided by the
                      Servicer
                      pursuant to clause 1 above as shall be reasonably requested
                      by the
                      Owner;

                  

          

           

          
            	(3)  	
                    to
                      deliver to the Owner, and to any Person designated by the Owner,
                      such
                      legal documents and in-house Opinions of Counsel as are customarily
                      delivered by servicers and reasonably determined by the Owner
                      to be
                      necessary in connection with any Reconstitution, as the case
                      may be, such
                      in-house Opinions of Counsel for a Securitization Transaction
                      to be in the
                      form reasonably acceptable to the Owner, it being understood
                      that the cost
                      of any opinions of outside special counsel that may be required
                      for a
                      Reconstitution, as the case may be, shall be the responsibility
                      of the
                      Owner;

                  

          

           

          
            	(4)  	
                    to
                      negotiate and execute one or more subservicing agreements between
                      the
                      Servicer and any master servicer which is generally considered
                      to be a
                      prudent master servicer in the secondary mortgage market, designated
                      by
                      the Owner in its sole discretion after consultation with the
                      Servicer
                      and/or one or more custodial and servicing agreements among
                      the Owner, the
                      Servicer and a third party custodian/trustee which is generally
                      considered
                      to be a prudent custodian/trustee in the secondary mortgage
                      market
                      designated by the Owner in its sole discretion after consultation
                      with the
                      Servicer, in either case for the purpose of pooling the Mortgage
                      Loans
                      with other Mortgage Loans for resale or securitization;
                      

                  

          

           

          
            	(5)  	
                    in
                      connection with any securitization of any Mortgage Loans, to
                      execute a
                      pooling and servicing agreement, which pooling and servicing
                      agreement
                      may, at the Owner’s direction, contain contractual provisions including,
                      but not limited to, a 24-day certificate payment delay (54-day
                      total
                      payment delay), servicer advances of delinquent scheduled payments
                      of
                      principal and interest through liquidation (unless deemed non-recoverable)
                      and prepayment interest shortfalls (to the extent of the monthly
                      servicing
                      fee payable thereto), servicing and mortgage loan representations
                      and
                      warranties which in form and substance conform to the representations
                      and
                      warranties in this Agreement and to secondary market standards
                      for
                      securities backed by mortgage loans similar to the Mortgage
                      Loans and such
                      provisions with regard to servicing responsibilities, investor
                      reporting,
                      segregation and deposit of principal and interest payments,
                      custody of the
                      Mortgage Loans, and other covenants as are required by the
                      Owner and one
                      or more nationally recognized rating agencies for mortgage
                      pass-through
                      transactions. If the Owner deems it advisable at any time to
                      pool the
                      Mortgage Loans with other mortgage loans for the purpose of
                      resale or
                      securitization, the Servicer agrees to execute one or more
                      subservicing
                      agreements between itself and a master servicer designated
                      by the Owner at
                      its sole discretion, and/or one or more servicing agreements
                      among the
                      Servicer, the Owner and a trustee designated by the Owner at
                      its sole
                      discretion, such agreements in each case incorporating terms
                      and
                      provisions substantially identical to those described in the
                      immediately
                      preceding paragraph; and

                  

          

           

          
            	(6)  	
                    in
                      the event that the Owner appoints a credit risk manager in
                      connection with
                      a Securitization Transaction, to execute a credit risk management
                      agreement and provide reports and information reasonably required
                      by the
                      credit risk manager.

                  

          

           

          All
            Mortgage Loans not sold or transferred pursuant to a Reconstitution shall
            be
            subject to this Agreement and shall continue to be serviced in accordance
            with
            the terms of this Agreement and with respect thereto this Agreement shall
            remain
            in full force and effect.

           

          ARTICLE
            IX

           

          MISCELLANEOUS
            PROVISIONS

           

          
            	Section
                    9.01.  	
                    Amendment.

                  

          

           

          This
            Agreement may be amended from time to time by the Servicer and the Owner
            by
            written agreement signed by the Servicer, the Owner and the certificate
            insurer
            with respect to any Securitization Transaction, provided however, such
            amendment
            shall not result in a qualification, withdrawal or downgrade of the then-current
            rating of any of the certificates with respect to any Securitization
            Transaction
            (and with respect to the insured certificates, without regard to the
            certificate
            insurance policy).

           

          
            	Section
                    9.02.  	
                    Governing
                      Law; Jurisdiction.

                  

          

           

          This
            Agreement shall be construed in accordance with the laws of the State
            of New
            York, and the obligations, rights and remedies of the parties hereunder
            shall be
            determined in accordance with such laws. With respect to any claim arising
            out
            of this Agreement, each party irrevocably submits to the exclusive jurisdiction
            of the courts of the State of New York and the United States District
            Court
            located in the Borough of Manhattan in The City of New York, and each
            party
            irrevocably waives any objection which it may have at any time to the
            laying of
            venue of any suit, action or proceeding arising out of or relating hereto
            brought in any such courts, irrevocably waives any claim that any such
            suit,
            action or proceeding brought in any such court has been brought in any
            inconvenient forum and further irrevocably waives the right to object,
            with
            respect to such claim, suit, action or proceeding brought in any such
            court,
            that such court does not have jurisdiction over such party, provided
            that
            service of process has been made by any lawful means.

           

          
            	Section
                    9.03.  	
                    Notices.

                  

          

           

          All
            directions, demands and notices hereunder shall be in writing and shall
            be
            deemed to have been duly given if personally delivered at or mailed by
            first
            class mail, postage prepaid, by facsimile or by express delivery service,
            to (a)
            in the case of the Servicer, (i) if by overnight mail, Select Portfolio
            Servicing, Inc., 3815 South West Temple, Salt Lake City, Utah 84115-4412,
            Attention: General Counsel, facsimile number (801) 293-2555 or (ii) if
            by
            regular mail, P.O. Box 65250 Salt Lake City, Utah 84165-0250, Attention:
            General
            Counsel, facsimile number (801) 293-2555, or such other address or telecopy
            number as may hereafter be furnished to the Owner in writing by the Servicer,
            and (b) in the case of the Owner, DB Structured Products, Inc., 60 Wall
            Street,
            New York, New York 10005, Attention: Michael Commaroto (212) 250-3114.
            Notice of
            any Event of Default shall be given by telecopy and by certified
            mail.

           

          
            	Section
                    9.04.  	
                    Severability
                      of Provisions.

                  

          

           

          If
            any
            one or more of the covenants, agreements, provisions or terms of this
            Agreement
            shall for any reason whatsoever be held invalid, then such covenants,
            agreements, provisions or terms shall be deemed severable from the remaining
            covenants, agreements, provisions or terms of this Agreement and shall
            in no way
            affect the validity or enforceability of the other provisions of this
            Agreement.

           

          
            	Section
                    9.05.  	
                    Article
                      and Section References.

                  

          

           

          All
            article and section references used in this Agreement, unless otherwise
            provided, are to articles and sections in this Agreement.

           

          
            	Section
                    9.06.  	
                    Benefits
                      of Agreement.

                  

          

           

          Nothing
            in this Agreement, expressed or implied, shall give to any Person, other
            than
            the parties hereto and their successors hereunder, any benefit or any
            legal or
            equitable right, remedy or claim under this Agreement.

           

          
            	Section
                    9.07.  	
                    Advance
                      Facility.

                  

          

           

          (a)  The
            Servicer is hereby authorized to enter into a financing or other facility
            (any
            such arrangement, an “Advance Facility”) under which (1) the Servicer assigns or
            pledges to another Person (an “Advancing Person”) the Servicer's rights under
            this Agreement to be reimbursed for any Advances or Servicing Advances
            and/or
            (2) an Advancing Person agrees to fund (i) a portion of the purchase
            price of
            the servicing rights attributable to the Mortgage Loans or (ii) some
            or all
            Advances and/or Servicing Advances required to be made by the Servicer
            pursuant
            to this Agreement. No consent of the Owner is required before the Servicer
            may
            enter into an Advance Facility; provided, however, that the consent of
            the Owner
            shall be required before the Servicer may cause to be outstanding at
            one time
            more than one Advance Facility with respect to Advances or more than
            one Advance
            Facility with respect to Servicing Advances. Notwithstanding the existence
            of
            any Advance Facility under which an Advancing Person agrees to fund Advances
            and/or Servicing Advances on the Servicer's behalf, the Servicer shall
            remain
            obligated pursuant to this Agreement to make Advances and Servicing Advances
            pursuant to and as required by this Agreement, and shall not be relieved
            of such
            obligations by virtue of such Advance Facility.

           

          To
            the
            extent that an Advancing Person makes all or a portion of any Advance
            or any
            Servicing Advance and provides the Owner with notice acknowledged by
            the
            Servicer that such Advancing Person is entitled to reimbursement, such
            Advancing
            Person shall be entitled to receive reimbursement pursuant to this Agreement
            for
            such amount to the extent provided in 9.07(b). Such notice from the Advancing
            Person must specify the amount of the reimbursement and must specify which
            Section of this Agreement permits the applicable Advance or Servicing
            Advance to be reimbursed. The Owner shall be entitled to rely without
            independent investigation on the Advancing Person's statement with respect
            to
            the amount of any reimbursement pursuant to this 9.07 and with respect
            to the
            Advancing Person's statement with respect to the Section of this Agreement
            that permits the applicable Advance or Servicing Advance to be reimbursed.
            An
            Advancing Person whose obligations are limited to the making of Advances
            and/or
            Servicing Advances shall not be required to meet the qualifications of
            a
            Servicer or a Sub-Servicer and will not be deemed to be a Sub-Servicer
            under
            this Agreement.

           

          (b)  If
            the
            Advancing Person and the Servicer submit to the Owner the notice set
            forth in
            subsection (a) above, then the Servicer shall be permitted to pay to the
            Advancing Person reimbursements for Advances and Servicing Advances from
            the
            Collection Account to the same extent the Servicer would have been permitted
            to
            reimburse itself for such Advances and/or Servicing Advances in accordance
            with
            this Agreement prior to the remittance to the Owner.

           

          (c)  All
            Advances and Servicing Advances made pursuant to the terms of this Agreement
            shall be deemed made and shall be reimbursed on a “first in-first out” (FIFO)
            basis.

           

          
            	Section
                    9.08.  	
                    Master
                      Servicer.

                  

          

           

          For
            purposes of this Agreement, including but not limited to Section 4.19
            and
            Article X, any Master Servicer shall be considered a third party beneficiary
            to
            this Agreement entitled to all the rights and benefits accruing to any
            Master
            Servicer herein as if it were a direct party to this Agreement.

           

          
            	Section
                    9.09.  	
                    Exhibits.

                  

          

           

          The
            exhibits to this Agreement are hereby incorporated and made a part hereof
            and
            are an integral part of this Agreement.

           

          
            	Section
                    9.10.  	
                    General
                      Interpretive Principles.

                  

          

           

          For
            purposes of this Agreement, except as otherwise expressly provided or
            unless the
            context otherwise requires:

           

          (i)  the
            terms
            defined in this Agreement have the meanings assigned to them in this
            Agreement
            and include the plural as well as the singular, and the use of any gender
            herein
            shall be deemed to include the other gender;

           

          (ii)  accounting
            terms not otherwise defined herein have the meanings assigned to them
            in
            accordance with generally accepted accounting principles;

           

          (iii)  references
            herein to “Articles,” “Sections,” “Subsections,” “Paragraphs,” and other
            subdivisions without reference to a document are to designated Articles,
            Sections, Subsections, Paragraphs and other subdivisions of this
            Agreement;

           

          (iv)  a
            reference to a Subsection without further reference to a Section is a
            reference to such Subsection as contained in the same Section in which the
            reference appears, and this rule shall also apply to Paragraphs and other
            subdivisions;

           

          (v)  the
            words
“herein,” “hereof,” “hereunder” and other words of similar import refer to this
            Agreement as a whole and not to any particular provision; and

           

          (vi)  the
            term
“include” or “including” shall mean without limitation by reason of
            enumeration.

           

          
            	Section
                    9.11.  	
                    Reproduction
                      of Documents.

                  

          

           

          This
            Agreement and all documents relating thereto, including, without limitation,
            (i)
            consents, waivers and modifications which may hereafter be executed,
            (ii)
            documents received by any party at the closing, and (iii) financial statements,
            certificates and other information previously or hereafter furnished,
            may be
            reproduced by any photographic, photostatic, microfilm, micro-card, miniature
            photographic or other similar process. The parties agree that any such
            reproduction shall be admissible in evidence as the original itself in
            any
            judicial or administrative proceeding, whether or not the original is
            in
            existence and whether or not such reproduction was made by a party in
            the
            regular course of business, and that any enlargement, facsimile or further
            reproduction of such reproduction shall likewise be admissible in
            evidence.

           

          
            	Section
                    9.12.  	
                    Counterparts.

                  

          

           

          This
            Agreement may be executed simultaneously in any number of counterparts.
            Each
            counterpart shall be deemed to be an original, and all such counterparts
            shall
            constitute one and the same instrument.

           

          
            	Section
                    9.13.  	
                    Entire
                      Agreement.

                  

          

           

          Except
            as
            otherwise provided herein, this Agreement constitutes the entire agreement
            between the parties hereto and supersedes all rights and prior agreements
            and
            understandings, oral and written, between the parties hereto with respect
            to the
            subject matter hereof.

           

          
            	Section
                    9.14.  	
                    Confidential
                      Information.

                  

          

           

          The
            Owner
            and the Servicer shall keep confidential and shall not divulge to any
            party the
            terms of this Agreement, unless (i) otherwise required by law or any
            governmental agency (ii) it is appropriate for the Owner or the Servicer
            to do
            so in working with legal counsel, auditors, taxing authorities and/or
            other
            governmental agencies or (iii) otherwise mutually agreed to by Owner
            and
            Servicer.

           

          ARTICLE
            X

           

          COMPLIANCE
            WITH REGULATION AB.

           

          
            	Section
                    10.01.  	
                    Intent
                      of the Parties; Reasonableness. 

                  

          

           

          The
            Owner
            and the Servicer acknowledge and agree that the purpose of Article X
            of this
            Agreement is to facilitate compliance by the Owner and any Depositor
            with the
            provisions of Regulation AB and related rules and regulations of the
            Commission.
            Although Regulation AB is applicable by its terms only to offerings of
            asset-backed securities that are registered under the Securities Act,
            the
            Servicer acknowledges that investors in privately offered securities
            may require
            that the Owner or any Depositor provide comparable disclosure in unregistered
            offerings. References in this Agreement to compliance with Regulation
            AB include
            provision of comparable disclosure in private offerings. 

           

          Neither
            the Owner nor any Depositor shall exercise its right to request delivery
            of
            information or other performance under these provisions other than in
            good
            faith, or for purposes other than compliance with the Securities Act,
            the
            Exchange Act and, in each case, the rules and regulations of the Commission
            thereunder (or the provision in a private offering of disclosure comparable
            to
            that required under the Securities Act) and the Sarbanes-Oxley Act. The
            Servicer
            acknowledges that interpretations of the requirements of Regulation AB
            may
            change over time, whether due to interpretive guidance provided by the
            Commission or its staff, consensus among participants in the asset-backed
            securities markets, advice of counsel, or otherwise, and agrees to comply
            with
            requests made by the Owner, any Master Servicer or any Depositor in good
            faith
            for delivery of information under these provisions on the basis of established
            and evolving interpretations of Regulation AB. In connection with any
            Securitization Transaction, the Servicer shall cooperate fully with the
            Owner
            and any Master Servicer to deliver to the Owner (including any of its
            assignees
            or designees), any Master Servicer and any Depositor, any and all statements,
            reports, certifications, records and any other information necessary
            in the good
            faith determination of the Owner, the Master Servicer or any Depositor
            to permit
            the Owner, such Master Servicer or such Depositor to comply with the
            provisions
            of Regulation AB, together with such disclosures relating to the Servicer,
            any
            Subservicer and the Mortgage Loans, or the servicing of the Mortgage
            Loans,
            reasonably believed by the Owner or any Depositor to be necessary in
            order to
            effect such compliance. In the event of any conflict between Article
            X and any
            other term or provision in this Agreement, the provisions of Article
            X shall
            control.

           

          The
            Owner
            (including any of its assignees or designees) shall cooperate with the
            Servicer
            by providing timely notice of requests for information under these provisions
            and by reasonably limiting such requests to information required, in
            the Owner’s
            reasonable judgment, to comply with Regulation AB.

           

          
            	Section
                    10.02.  	
                    Additional
                      Representations and Warranties of the
                      Servicer.

                  

          

           

          (a)  The
            Servicer hereby represents to the Owner, to any Master Servicer and to
            any
            Depositor, as of the date on which information is first provided to the
            Owner,
            any Master Servicer or any Depositor under Section 10.03 that, except
            as
            disclosed in writing to the Owner, such Master Servicer or such Depositor
            prior
            to such date: (i) the Servicer is not aware and has not received notice
            that any
            default, early amortization or other performance triggering event has
            occurred
            as to any other securitization due to any act or failure to act of the
            Servicer;
            (ii) the Servicer has not been terminated as servicer in a residential
            mortgage
            loan securitization, either due to a servicing default or to application
            of a
            servicing performance test or trigger; (iii) no material noncompliance
            with the
            applicable servicing criteria with respect to other securitizations of
            residential mortgage loans involving the Servicer as servicer has been
            disclosed
            or reported by the Servicer; (iv) no material changes to the Servicer’s policies
            or procedures with respect to the servicing function it will perform
            under this
            Agreement and any Reconstitution Agreement for mortgage loans of a type
            similar
            to the Mortgage Loans have occurred during the three-year period immediately
            preceding the related Securitization Transaction; (v) there are no aspects
            of
            the Servicer’s financial condition that could have a material adverse effect on
            the performance by the Servicer of its servicing obligations under this
            Agreement or any Reconstitution Agreement; (vi) there are no material
            legal or
            governmental proceedings pending (or known to be contemplated) against
            the
            Servicer or any Subservicer; and (vii) there are no affiliations, relationships
            or transactions relating to the Servicer or any Subservicer with respect
            to any
            Securitization Transaction and any party thereto identified by the related
            Depositor of a type described in Item 1119 of Regulation AB.

           

          (b)  If
            so
            requested by the Owner, any Master Servicer or any Depositor on any date
            following the date on which information is first provided to the Owner,
            any
            Master Servicer or any Depositor under Section 10.03, the Servicer shall,
            within
            five (5) Business Days following such request, confirm in writing the
            accuracy
            of the representations and warranties set forth in paragraph (a) of this
            Section
            or, if any such representation and warranty is not accurate as of the
            date of
            such request, provide reasonably adequate disclosure of the pertinent
            facts, in
            writing, to the requesting party.

           

          
            	Section
                    10.03.  	
                    Information
                      to Be Provided by the Servicer.

                  

          

           

          In
            connection with any Securitization Transaction the Servicer shall (i)
            within
            five (5) Business Days following request by the Owner or any Depositor,
            provide
            to the Owner and such Depositor (or, as applicable, cause each Subservicer
            to
            provide), in writing and in form and substance reasonably satisfactory
            to the
            Owner and such Depositor, the information and materials specified in
            paragraphs
            (c) and (g) of this Section, and (ii) as promptly as practicable following
            notice to or discovery by the Servicer, provide to the Owner and any
            Depositor
            (in writing and in form and substance reasonably satisfactory to the
            Owner and
            such Depositor) the information specified in paragraph (d) of this
            Section.

           

          (a)  
            [reserved] 

           

          (b)  
            [reserved]

           

          (c)  If
            so
            requested by the Owner or any Depositor, the Servicer shall provide such
            information regarding the Servicer, as servicer of the Mortgage Loans,
            and each
            Subservicer (each of the Servicer and each Subservicer, for purposes
            of this
            paragraph, a “Servicer”), as is requested for the purpose of compliance with
            Items 1108, 1117 and 1119 of Regulation AB. Such information shall include,
            at a
            minimum:

           

          (A) the
            Servicer’s form of organization;

           

          (B) a
            description of how long the Servicer has been servicing residential mortgage
            loans; a general discussion of the Servicer’s experience in servicing assets of
            any type as well as a more detailed discussion of the Servicer’s experience in,
            and procedures for, the servicing function it will perform under this
            Agreement
            and any Reconstitution Agreements; information regarding the size, composition
            and growth of the Servicer’s portfolio of residential mortgage loans of a type
            similar to the Mortgage Loans and information on factors related to the
            Servicer
            that may be material, in the good faith judgment of the Owner or any
            Depositor,
            to any analysis of the servicing of the Mortgage Loans or the related
            asset-backed securities, as applicable, including, without
            limitation:

           

          (1) whether
            any prior securitizations of mortgage loans of a type similar to the
            Mortgage
            Loans involving the Servicer have defaulted or experienced an early amortization
            or other performance triggering event because of servicing during the
            three-year
            period immediately preceding the related Securitization
            Transaction;

           

          (2) the
            extent of outsourcing the Servicer utilizes;

           

          (3) whether
            there has been previous disclosure of material noncompliance with the
            applicable
            servicing criteria with respect to other securitizations of residential
            mortgage
            loans involving the Servicer as a servicer during the three-year period
            immediately preceding the related Securitization Transaction;

           

          (4) whether
            the Servicer has been terminated as servicer in a residential mortgage
            loan
            securitization, either due to a servicing default or to application of
            a
            servicing performance test or trigger; and

           

          (5) such
            other information as the Owner or any Depositor may reasonably request
            for the
            purpose of compliance with Item 1108(b)(2) of Regulation AB;

           

          (C) a
            description of any material changes during the three-year period immediately
            preceding the related Securitization Transaction to the Servicer’s policies or
            procedures with respect to the servicing function it will perform under
            this
            Agreement and any Reconstitution Agreements for mortgage loans of a type
            similar
            to the Mortgage Loans;

           

          (D) information
            regarding the Servicer’s financial condition, to the extent that there is a
            material risk that an adverse financial event or circumstance involving
            the
            Servicer could have a material adverse effect on the performance by the
            Servicer
            of its servicing obligations under this Agreement or any Reconstitution
            Agreement;

           

          (E) information
            regarding advances made by the Servicer on the Mortgage Loans and the
            Servicer’s
            overall servicing portfolio of residential mortgage loans for the three-year
            period immediately preceding the related Securitization Transaction,
            which may
            be limited to a statement by an authorized officer of the Servicer to
            the effect
            that the Servicer has made all advances required to be made on residential
            mortgage loans serviced by it during such period, or, if such statement
            would
            not be accurate, information regarding the percentage and type of advances
            not
            made as required, and the reasons for such failure to advance;

           

          (F) a
            description of the Servicer’s processes and procedures designed to address any
            special or unique factors involved in servicing loans of a similar type
            as the
            Mortgage Loans;

           

          (G) a
            description of the Servicer’s processes for handling delinquencies, losses,
            bankruptcies and recoveries, such as through liquidation of mortgaged
            properties, sale of defaulted mortgage loans or workouts;

           

          (H) information
            as to how the Servicer defines or determines delinquencies and charge-offs,
            including the effect of any grace period, re-aging, restructuring, partial
            payments considered current or other practices with respect to delinquency
            and
            loss experience;

           

          (I) a
            description of any material legal or governmental proceedings pending
            (or known
            to be contemplated) against the Servicer; and

           

          (J) a
            description of any affiliation or relationship between the Servicer and
            any of
            the following parties to a Securitization Transaction, as such parties
            are
            identified to the Servicer by the Owner or any Depositor in writing in
            advance
            of such Securitization Transaction:

           

          (1) the
            sponsor;

          (2) the
            depositor;

          (3) the
            issuing entity;

          (4) any
            servicer;

          (5) any
            trustee;

          (6) any
            originator;

          (7) any
            significant obligor;

          (8) any
            enhancement or support provider; and

          (9) any
            other
            material transaction party.

          

          (d)  For
            the
            purpose of satisfying the reporting obligation under the Exchange Act
            with
            respect to any class of asset-backed securities, the Servicer shall (or
            shall
            cause each Subservicer to) (i) provide prompt notice to the Owner, any
            Master
            Servicer and any Depositor in writing of (A) any material litigation
            or
            governmental proceedings involving the Servicer or any Subservicer, (B)
            any
            affiliations or relationships that develop following the closing date
            of a
            Securitization Transaction between the Servicer or any Subservicer (and
            any
            other parties identified in writing by the requesting party) with respect
            to
            such Securitization Transaction, (C) any Event of Default under the terms
            of
            this Agreement or any Reconstitution Agreement, (D) any merger, consolidation
            or
            sale of substantially all of the assets of the Servicer, and (E) the
            Servicer’s
            entry into an agreement with a Subservicer or Subcontractor to perform
            or assist
            in the performance of any of the Servicer’s obligations under this Agreement or
            any Reconstitution Agreement and (ii) provide to the Owner and any Depositor
            a
            description of such proceedings, affiliations or relationships.

           

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

           

          (f)  In
            addition to such information as the Servicer, as servicer, is obligated
            to
            provide pursuant to other provisions of this Agreement, not later than
            ten days
            prior to the deadline for the filing of any distribution report on Form
            10-D in
            respect of any Securitization Transaction that includes any of the Mortgage
            Loans serviced by the Servicer or any Subservicer, the Servicer or such
            Subservicer, as applicable, shall, to the extent the Servicer or such
            Subservicer has knowledge, provide to the party responsible for filing
            such
            report (including, if applicable, the Master Servicer) notice of the
            occurrence
            of any of the following events along with all information, data, and
            materials
            related thereto as may be required to be included in the related distribution
            report on Form 10-D (as specified in the provisions of Regulation AB
            referenced
            below):

           

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

           

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

           

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

           

          (g)  The
            Servicer shall provide to the Owner, any Master Servicer and any Depositor,
            such
            additional information as such party may reasonably request, including
            evidence
            of the authorization of the person signing any certification or statement,
            copies or other evidence of fidelity bond insurance and errors and omission
            insurance policy financial information and reports, and such other information
            related to the Servicer or any Subservicer or the Servicer or such Subservicer’s
            performance hereunder.

           

          
            	Section
                    10.04.  	
                    Servicer
                      Compliance Statement.

                  

          

           

          On
            or
            before March 15 of each calendar year, commencing in 2007, the Servicer
            shall
            deliver to the Owner, any Master Servicer and any Depositor a statement
            of
            compliance addressed to the Owner, such Master Servicer and such Depositor
            and
            signed by an authorized officer of the Servicer, to the effect that (i)
            a review
            of the Servicer’s activities during the immediately preceding calendar year (or
            applicable portion thereof) and of its performance under this Agreement
            and any
            applicable Reconstitution Agreement during such period has been made
            under such
            officer’s supervision, and (ii) to the best of such officers’ knowledge, based
            on such review, the Servicer has fulfilled all of its obligations under
            this
            Agreement and any applicable Reconstitution Agreement in all material
            respects
            throughout such calendar year (or applicable portion thereof) or, if
            there has
            been a failure to fulfill any such obligation in any material respect,
            specifically identifying each such failure known to such officer and
            the nature
            and the status thereof.

           

          
            	Section
                    10.05.  	
                    Report
                      on Assessment of Compliance and
                      Attestation.

                  

          

           

          (a)  On
            or
            before March 15 of each calendar year, commencing in 2007, the Servicer
            shall:

           

          (i) deliver
            to the Owner, any Master Servicer and any Depositor a report (in form
            and
            substance reasonably satisfactory to the Owner, such Master Servicer
            and such
            Depositor) regarding the Servicer’s assessment of compliance with the Servicing
            Criteria during the immediately preceding calendar year, as required
            under Rules
            13a-18 and 15d-18 of the Exchange Act and Item 1122 of Regulation AB.
            Such
            report shall be addressed to the Owner, such Master Servicer and such
            Depositor
            and signed by an authorized officer of the Servicer, and shall address
            each of
            the “Applicable Servicing Criteria” specified on Exhibit F hereto;

           

          (ii) deliver
            to the Owner, any Master Servicer and any Depositor a report of a registered
            public accounting firm reasonably acceptable to the Owner, such Master
            Servicer
            and such Depositor that attests to, and reports on, the assessment of
            compliance
            made by the Servicer and delivered pursuant to the preceding paragraph.
            Such
            attestation shall be in accordance with Rules 1-02(a)(3) and 2-02(g)
            of
            Regulation S-X under the Securities Act and the Exchange Act;

           

          (iii) cause
            each Subservicer, and each Subcontractor determined by the Servicer pursuant
            to
            Section 10.06(b) to be “participating in the servicing function” within the
            meaning of Item 1122 of Regulation AB, and, to the extent required of
            such
            Subservicer or Subcontractor under Item 1123 of Regulation AB, an annual
            compliance certificate as and when provided buy Section 10.04, to deliver
            to the
            Owner, any Master Servicer and any Depositor an assessment of compliance
            and
            accountants’ attestation as and when provided in paragraphs (a) and (b) of this
            Section; and

           

          (iv) if
            requested by the Owner, any Depositor or any Master Servicer not later
            than
            March 15 of the calendar year in which such certification is to be
            delivered, deliver, and cause each Subservicer and Subcontractor described
            in
            clause (iii) above to deliver, to the Owner, any Depositor, any Master
            Servicer
            and any other Person that will be responsible for signing the certification
            (a
“Sarbanes Certification”) required by Rules 13a-14(d) and 15d-14(d) under the
            Exchange Act (pursuant to Section 302 of the Sarbanes-Oxley Act of 2002)
            on
            behalf of an asset-backed issuer with respect to a Securitization Transaction
            a
            certification, signed by the appropriate officer of the Servicer, in
            the form
            attached hereto as Exhibit B.

           

          The
            Servicer acknowledges that the parties identified in clause (a)(iv) above
            may
            rely on the certification provided by the Servicer pursuant to such clause
            in
            signing a Sarbanes Certification and filing such with the Commission.
            Neither
            the Owner, any Depositor or any Master Servicer will request delivery
            of a
            certification under clause (a)(iv) above unless a Depositor is required
            under
            the Exchange Act to file an annual report on Form 10-K or any amendment
            thereto
            with respect to an issuing entity whose asset pool includes Mortgage
            Loans.

           

          (b)  Each
            assessment of compliance provided by a Subservicer pursuant to Section
            10.05(a)(i) shall address each of the Servicing Criteria specified on
            a
            certification substantially in the form of Exhibit F hereto delivered
            to the
            Owner concurrently with the execution of this Agreement or, in the case
            of a
            Subservicer subsequently appointed as such, on or prior to the date of
            such
            appointment. An assessment of compliance provided by a Subcontractor
            pursuant to
            Section 10.05(a)(iii) need not address any elements of the Servicing
            Criteria
            other than those specified by the Servicer pursuant to Section
            10.06.

           

          
            	Section
                    10.06.  	
                    Use
                      of Subservicers and
                      Subcontractors.

                  

          

           

          The
            Servicer shall not hire or otherwise utilize the services of any Subservicer
            to
            fulfill any of the obligations of the Servicer as servicer under this
            Agreement
            or any Reconstitution Agreement unless the Servicer complies with the
            provisions
            of paragraph (a) of this Section. The Servicer shall not hire or otherwise
            utilize the services of any Subcontractor, and shall not permit any Subservicer
            to hire or otherwise utilize the services of any Subcontractor, to fulfill
            any
            of the obligations of the Servicer as servicer under this Agreement or
            any
            Reconstitution Agreement unless the Servicer complies with the provisions
            of
            paragraph (b) of this Section.

           

          (a)  It
            shall
            not be necessary for the Servicer to seek the consent of the Owner, any
            Master
            Servicer or any Depositor to the utilization of any Subservicer. The
            Servicer
            shall cause any Subservicer used by the Servicer (or by any Subservicer)
            for the
            benefit of the Owner and any Depositor to comply with the provisions
            of this
            Section and with Sections 10.02, 10.03(c), (e), (f) and (g), 10.04, 10.05
            and
            10.07 of this Agreement to the same extent as if such Subservicer were
            the
            Servicer, and to provide the information required with respect to such
            Subservicer under Section 10.03(d) of this Agreement. The Servicer shall
            be
            responsible for obtaining from each Subservicer and delivering to the
            Owner and
            any Depositor any servicer compliance statement required to be delivered
            by such
            Subservicer under Section 10.04, any assessment of compliance and attestation
            required to be delivered by such Subservicer under Section 10.05 and
            any
            certification required to be delivered to the Person that will be responsible
            for signing the Sarbanes Certification under Section 10.05 as and when
            required
            to be delivered.

           

          (b)  It
            shall
            not be necessary for the Servicer to seek the consent of the Owner, any
            Master
            Servicer or any Depositor to the utilization of any Subcontractor. The
            Servicer
            shall promptly upon request provide to the Owner, any Master Servicer
            and any
            Depositor (or any designee of the Depositor, such as an administrator)
            a written
            description (in form and substance satisfactory to the Owner, such Depositor
            and
            such Master Servicer) of the role and function of each Subcontractor
            utilized by
            the Servicer or any Subservicer, specifying (i) the identity of each
            such
            Subcontractor, (ii) which (if any) of such Subcontractors are “participating in
            the servicing function” within the meaning of Item 1122 of Regulation AB, and
            (iii) which elements of the Servicing Criteria will be addressed in assessments
            of compliance provided by each Subcontractor identified pursuant to clause
            (ii)
            of this paragraph.

           

          (c)  As
            a
            condition to the utilization of any Subcontractor determined to be
“participating in the servicing function” within the meaning of Item 1122 of
            Regulation AB, the Servicer shall cause any such Subcontractor used by
            the
            Servicer (or by any Subservicer) for the benefit of the Owner and any
            Depositor
            to comply with the provisions of Sections 10.05 and 10.07 of this Agreement
            to
            the same extent as if such Subcontractor were the Servicer. The Servicer
            shall
            be responsible for obtaining from each Subcontractor and delivering to
            the Owner
            and any Depositor any assessment of compliance and attestation and the
            other
            certifications required to be delivered by such Subservicer and such
            Subcontractor under Section 10.05, in each case as and when required
            to be
            delivered.

           

          
            	Section
                    10.07.  	
                    Indemnification;
                      Remedies.

                  

          

           

          (a)  The
            Servicer shall indemnify the Owner, each affiliate of the Owner, and
            each of the
            following parties participating in a Securitization Transaction: each
            sponsor
            and issuing entity; each Person (including, but not limited to, any Master
            Servicer if applicable) responsible for the preparation, execution or
            filing of
            any report required to be filed with the Commission with respect to such
            Securitization Transaction, or for execution of a certification pursuant
            to Rule
            13a-14(d) or Rule 15d-14(d) under the Exchange Act with respect to such
            Securitization Transaction; each broker dealer acting as underwriter,
            placement
            agent or initial purchaser, each Person who controls any of such parties
            or the
            Depositor (within the meaning of Section 15 of the Securities Act and
            Section 20
            of the Exchange Act); and the respective present and former directors,
            officers,
            employees, agents and affiliates of each of the foregoing and of the
            Depositor
            (each, an “Indemnified Party”), and shall hold each of them harmless from and
            against any actual claims, losses, damages, penalties, fines, forfeitures,
            legal
            fees and expenses and related costs, judgments, and any other costs,
            fees and
            expenses that any of them may sustain arising out of or based upon:

           

          (i)(A)
            any untrue statement of a material fact contained or alleged to be contained
            in
            any information, report, certification, data, accountants’ letter or other
            material provided in written or electronic form under this Article X
            by or on
            behalf of the Servicer, or provided under this Article X by or on behalf
            of any
            Subservicer or Subcontractor (collectively, the “Servicer Information”), or (B)
            the omission or alleged omission to state in the Servicer Information
            a material
            fact required to be stated in the Servicer Information or necessary in
            order to
            make the statements therein, in the light of the circumstances under
            which they
            were made, not misleading; provided, by way of clarification, that clause
            (B) of
            this paragraph shall be construed solely by reference to the Servicer
            Information and not to any other information communicated in connection
            with a
            sale or purchase of securities, without regard to whether the Servicer
            Information or any portion thereof is presented together with or separately
            from
            such other information;

           

          (ii) any
            breach by the Servicer of its obligations under this Article X, including
            particularly any failure by the Servicer, any Subservicer or Subcontractor
            to
            deliver any information, report, certification, accountants’ letter or other
            material when and as required under this Article X, including any failure
            by the
            Servicer to identify pursuant to Section 10.06(b) any Subcontractor
“participating in the servicing function” within the meaning of Item 1122 of
            Regulation AB; 

           

          (iii) any
            breach by the Servicer of a representation or warranty set forth in Section
            10.02(a) or in a writing furnished pursuant to Section 10.02(b) and made
            as of a
            date prior to the closing date of the related Securitization Transaction,
            to the
            extent that such breach is not cured by such closing date, or any breach
            by the
            Servicer of a representation or warranty in a writing furnished pursuant
            to
            Section 10.02(b) to the extent made as of a date subsequent to such closing
            date; or

           

          (iv) the
            negligence, bad faith or willful misconduct of the Servicer in connection
            with
            its performance under this Article X.

           

          If
            the
            indemnification provided for herein is unavailable or insufficient to
            hold
            harmless an Indemnified Party, then the Servicer agrees that it shall
            contribute
            to the amount paid or payable by such Indemnified Party as a result of
            any
            claims, losses, damages or liabilities incurred by such Indemnified Party
            in
            such proportion as is appropriate to reflect the relative fault of such
            Indemnified Party on the one hand and the Servicer on the other. 

           

          In
            the
            case of any failure of performance described in clause (a)(ii) of this
            Section,
            the Servicer shall promptly reimburse the Owner, any Depositor, as applicable,
            and each Person responsible for the preparation, execution or filing
            of any
            report required to be filed with the Commission with respect to such
            Securitization Transaction, or for execution of a certification pursuant
            to Rule
            13a-14(d) or Rule 15d-14(d) under the Exchange Act with respect to such
            Securitization Transaction, for all costs reasonably incurred by each
            such party
            in order to obtain the information, report, certification, accountants’ letter
            or other material not delivered as required by the Servicer, any Subservicer
            or
            any Subcontractor.

           

          This
            indemnification shall survive the termination of this Agreement or the
            termination of any party to this Agreement.

           

          (b)  (i)Any
            failure by the Servicer, any Subservicer or any Subcontractor to deliver
            any
            information, report, certification, accountants’ letter or other material when
            and as required under this Article X, or any breach by the Servicer of
            a
            representation or warranty set forth in Section 10.02(a) or in a writing
            furnished pursuant to Section 10.02(b) and made as of a date prior to
            the
            closing date of the related Securitization Transaction, to the extent
            that such
            breach is not cured by such closing date, or any breach by the Servicer
            of a
            representation or warranty in a writing furnished pursuant to Section
            10.02(b)
            to the extent made as of a date subsequent to such closing date, shall,
            except
            as provided in clause (ii) of this paragraph, immediately and automatically,
            without notice or grace period, constitute an Event of Default with respect
            to
            the Servicer under this Agreement and any applicable Reconstitution Agreement,
            and shall entitle the Owner, any Master Servicer or any Depositor, as
            applicable, in its sole discretion to terminate the rights and obligations
            of
            the Servicer as servicer under this Agreement and/or any applicable
            Reconstitution Agreement without payment (notwithstanding anything in
            this
            Agreement or any applicable Reconstitution Agreement to the contrary)
            of any
            compensation to the Servicer and if the Servicer is servicing any of
            the
            Mortgage Loans in a Securitization Transaction, appoint a successor servicer,
            in
            accordance with the related securitization agreement, reasonably acceptable
            to
            any Master Servicer of such Securitization Transaction; provided that
            to the
            extent that any provision of this Agreement and/or any applicable Reconstitution
            Agreement expressly provides for the survival of certain rights or obligations
            following termination of the Servicer as servicer, such provision shall
            be given
            effect.

           

          (ii) Any
            failure by the Servicer, any Subservicer or any Subcontractor to deliver
            any
            information, report, certification or accountants’ letter when and as required
            under Section 10.04 or 10.05, including (except as provided in the following
            paragraph) any failure by the Servicer to identify pursuant to Section
            10.06(b)
            any Subcontractor “participating in the servicing function” within the meaning
            of Item 1122 of Regulation AB, shall constitute an Event of Default with
            respect
            to the Servicer, automatically, without notice and without any cure period,
            under this Agreement and any applicable Reconstitution Agreement, and
            shall
            entitle the Owner, any Master Servicer or any Depositor, as applicable,
            in its
            sole discretion to terminate the rights and obligations of the Servicer
            as
            servicer under this Agreement and/or any applicable Reconstitution Agreement
            without payment (notwithstanding anything in this Agreement to the contrary)
            of
            any compensation to the Servicer; provided that to the extent that any
            provision
            of this Agreement and/or any applicable Reconstitution Agreement expressly
            provides for the survival of certain rights or obligations following
            termination
            of the Servicer as servicer, such provision shall be given effect.

           

          None
            of
            the Owner, any Master Servicer, nor any Depositor shall be entitled to
            terminate
            the rights and obligations of the Servicer pursuant to this subparagraph
            (b)(ii)
            if a failure of the Servicer to identify a Subcontractor “participating in the
            servicing function” within the meaning of Item 1122 of Regulation AB was
            attributable solely to the role or functions of such Subcontractor with
            respect
            to mortgage loans other than the Mortgage Loans.

           

          (iii) The
            Servicer shall promptly reimburse the Owner (or any designee of the Owner,
            such
            as a master servicer) and any Depositor, as applicable, for all reasonable
            expenses incurred by the Owner (or such designee) or such Depositor,
            as such are
            incurred, in connection with the termination of the Servicer as servicer
            and the
            transfer of servicing of the Mortgage Loans to a successor servicer pursuant
            to
            Section 10.07(b). The provisions of this paragraph shall not limit whatever
            rights the Owner or any Depositor may have under other provisions of
            this
            Agreement and/or any applicable Reconstitution Agreement or otherwise,
            whether
            in equity or at law, such as an action for damages, specific performance
            or
            injunctive relief.

           

          

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

              
              

            

          

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

           

          
            	
                    SELECT
                      PORTFOLIO SERVICING, INC.,

                    as
                      Servicer

                  
	 	 
	
                    By:

                  	 
	
                    Name:

                  	 
	
                    Title:

                  	 
	 
	 
	
                    DB
                      STRUCTURED PRODUCTS, INC., 

                    as
                      Owner

                  
	 	 
	
                    By:

                  	 
	
                    Name:

                  	 
	
                    Title:

                  	 
	 	 
	
                    By:

                  	 
	
                    Name:

                  	 
	
                    Title:

                  	 

          

          

           

          

           

          

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

          EXHIBIT
            A

           

          REQUEST
            FOR RELEASE OF DOCUMENTS

           

          
            	
                    To:
                      

                  	
                    Wells
                      Fargo Bank, National Association

                  

          

          36
            Executive Park

          Irvine,
            California 92614

           

          
            	
                    Re:

                  	
                    Servicing
                      Agreement dated as of May 31, 2006 between Select Portfolio
                      Servicing,
                      Inc. as Servicer and DB Structured Products, Inc. as
                      Owner

                  

          

           

           

          In
            connection with the servicing of the Mortgage Loans held by you as Custodian
            pursuant to a certain custodial agreement, we request the release, and
            hereby
            acknowledge receipt of the Mortgage File or the Mortgage Loan described
            below,
            for the reason indicated.

           

          Mortgage
            Loan Number:

           

          Mortgagor
            Name, Address & Zip Code:

           

          Reason
            for Requesting Documents (check one):

           

          
            	
                    _________1.

                  	
                    Mortgage
                      Paid in Full

                  	 
	 	 	 
	
                    _________2.

                  	
                    Foreclosure

                  	 
	 	 	 
	
                    _________3.

                  	
                    Substitution

                  	 
	 	 	 
	
                    _________4.

                  	
                    Other
                      Liquidation (Repurchases, etc.)

                  	 
	 	 	 
	
                    _________5.

                  	
                    Nonliquidation

                  	
                    Reason:_____________________

                  
	 	 	 

          

           

          Address
            to which Custodian should deliver the
            Mortgage File:

           

          
            	 
	 

          

          

          

          
            	
                    By:

                  	 
	 	
                    (authorized
                      signer)

                  
	
                    Issuer:

                  	 
	
                    Address:

                  	 
	
                    Date:

                  	 

          

          

           

          Custodian

           

          Wells
            Fargo Bank, National Association

           

          Please
            acknowledge the execution of the above request by your signature and
            date
            below:

           

          
            	
                    ____________________________

                  	 	
                    ___________________

                  
	
                    Signature

                  	 	
                    Date

                  
	 	 	 
	
                    Documents
                      returned to Custodian:

                  	 	 
	
                    ____________________________

                  	 	
                    ____________________________

                  
	
                    Custodian

                  	 	
                    Date

                  

          

          

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

          EXHIBIT
            B

           

          FORM
            OF
            ANNUAL CERTIFICATION

          

          I,
            the
            _______________________ of [NAME OF SERVICER] certify to [the Purchaser],
            [the
            Depositor], and the [Master Servicer] [Securities Administrator] [Trustee],
            and
            their officers, with the knowledge and intent that they will rely upon
            this
            certification, that:

          

          (i) I
            have
            reviewed the servicer compliance statement of the Servicer provided in
            accordance with Item 1123 of Regulation AB (the “Compliance Statement”), the
            report on assessment of the Servicer’s compliance with the servicing criteria
            set forth in Item 1122(d) of Regulation AB (the “Servicing Criteria”), provided
            in accordance with Rules 13a-18 and 15d-18 under Securities Exchange
            Act of
            1934, as amended (the “Exchange Act”) and Item 1122 of Regulation AB (the
“Servicing Assessment”), the registered public accounting firm’s attestation
            report provided in accordance with Rules 13a-18 and 15d-18 under the
            Exchange
            Act and Section 1122(b) of Regulation AB (the “Attestation Report”), and all
            servicing reports, officer’s certificates and other information relating to the
            servicing of the Mortgage Loans by the Servicer during 200[ ] that were
            delivered to the [Depositor] [Master Servicer] [Securities Administrator]
            [Trustee] pursuant to the Agreement (collectively, the “Servicer Servicing
            Information”);

           

          (ii) Based
            on
            my knowledge, the Servicer Servicing Information, taken as a whole, does
            not
            contain any untrue statement of a material fact or omit to state a material
            fact
            necessary to make the statements made, in the light of the circumstances
            under
            which such statements were made, not misleading with respect to the period
            of
            time covered by the Servicer Servicing Information;

           

          (iii) Based
            on
            my knowledge, all of the Servicer Servicing Information required to be
            provided
            by the Servicer under the Agreement has been provided to the [Depositor]
            [Master
            Servicer] [Securities Administrator] [Trustee];

           

          (iv) I
            am
            responsible for reviewing the activities performed by the Servicer as
            servicer
            under the Agreement, and based on my knowledge and the compliance review
            conducted in preparing the Compliance Statement and except as disclosed
            in the
            Compliance Statement, the Servicing Assessment or the Attestation Report,
            the
            Servicer has fulfilled its obligations under the Agreement in all material
            respects; and

           

          (v) The
            Compliance Statement required to be delivered by the Servicer pursuant
            to the
            Agreement, and the Servicing Assessment and Attestation Report required
            to be
            provided by the Servicer and by any Subservicer or Subcontractor pursuant
            to the
            Agreement, have been provided to the [Depositor] [Master Servicer]. Any
            material
            instances of noncompliance described in such reports have been disclosed
            to the
            [Depositor] [Master Servicer]. Any material instance of noncompliance
            with the
            Servicing Criteria has been disclosed in such reports. 

           

          

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

          

          
            	
                    SELECT
                      PORTFOLIO SERVICING, INC.

                    (Servicer)

                  
	 	 
	
                    By:

                  	 
	
                    Name:

                  	 
	
                    Title:

                  	 
	
                    Date:

                  	 

          

          

          

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

          EXHIBIT
            C

           

          SERVICING
            ACCOUNT LETTER AGREEMENT

           

                                  (date)

          
            	
                    To:
                      

                  	
                    _____________________________________

                  

          

           

          _____________________________________

           

          _____________________________________

           

          (the
            “Depository”)

           

          As
            “Servicer” under the Servicing Agreement, dated as of May 31, 2006, between
            Select Portfolio Servicing, Inc. and DB Structured Products, Inc. (the
            “Agreement”), we hereby authorize and request you to establish an account, as a
            Servicing Account pursuant to Section 4.09 of the Agreement, to be
            designated as “Select Portfolio Servicing, Inc. in trust for [Owner].” All
            deposits in the account shall be subject to withdrawal therefrom by order
            signed
            by the Servicer. You may refuse any deposit which would result in a violation
            of
            the requirement that the account be fully insured as described below.
            This
            letter is submitted to you in duplicate. Please execute and return one
            original
            to us.

           

          
            	
                    SELECT
                      PORTFOLIO SERVICING, INC.

                  
	 	 
	
                    By:

                  	 
	
                    Name:

                  	 
	
                    Title:

                  	 

          

          

           

          The
            undersigned, as “Depository,” hereby certifies that the above described account
            has been established under Account Number ___________________, at the
            office of
            the depository indicated above, and agrees to honor withdrawals on such
            account
            as provided above. The full amount deposited at any time in the account
            will be
            insured by the Federal Deposit Insurance Corporation or the National
            Credit
            Union Administration.

           

          
            	
                    ______________________________

                    (name
                      of Depository)

                  
	 	 
	
                    By:

                  	 
	
                    Name:

                  	 
	
                    Title:

                  	 

          

          

           

          

           

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

          

          EXHIBIT
            D

           

          COLLECTION
            ACCOUNT LETTER AGREEMENT

           

          (date)

           

          
            	
                    To:
                      

                  	
                    _____________________________________

                  

          

           

          _____________________________________

           

          _____________________________________

           

          (the
            “Depository”)

           

          As
            “Servicer” under the Servicing Agreement, dated as of May 31, 2006, between
            Select Portfolio Servicing, Inc. and DB Structured Products, Inc. (the
            “Agreement”), we hereby authorize and request you to establish an account, as a
            Collection Account pursuant to Section 4.10 of the Agreement, to be
            designated as “Select Portfolio Servicing, Inc. in trust for [Owner].” All
            deposits in the account shall be subject to withdrawal therefrom by order
            signed
            by the Servicer. You may refuse any deposit which would result in a violation
            of
            the requirement that the account be fully insured as described below.
            This
            letter is submitted to you in duplicate. Please execute and return one
            original
            to us.

           

          
            	
                    SELECT
                      PORTFOLIO SERVICING, INC.

                  
	 	 
	
                    By:

                  	 
	
                    Name:

                  	 
	
                    Title:

                  	 

          

          

           

          The
            undersigned, as “Depository,” hereby certifies that the above described account
            has been established under Account Number    
            at the
            office of the depository indicated above, and agrees to honor withdrawals
            on
            such account as provided above. The full amount deposited at any time
            in the
            account will be insured by the Federal Deposit Insurance Corporation
            or the
            National Credit Union Administration.

           

          
            	
                    ______________________________

                    (name
                      of Depository)

                  
	 	 
	
                    By:

                  	 
	
                    Name:

                  	 
	
                    Title:

                  	 

          

          

           

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

          EXHIBIT
            E

           

          REMITTANCE
            REPORT

           

          

            
              	
                      Data
                        Field

                    	
                      Format

                    	
                      Data
                        Description

                    
	
                      Servicer
                        loan number

                    	
                      VARCHAR2(15)

                    	
                      Individual
                        number that uniquely identifies loan as defined by
                        servicer.

                    
	
                      Investor
                        number 

                    	
                      NUMBER
                        (10,2)

                    	
                      Unique
                        number assigned to a group of loans in the servicing system.
                        

                    
	
                      %
                        of MI coverage

                    	
                      NUMBER(6,5)

                    	
                      The
                        percent of coverage provided by the PMI company in the event
                        of loss on a
                        defaulted loan.

                    
	
                      Actual
                        bankruptcy start date

                    	
                      DATE(MM/DD/YYYY)

                    	
                      Actual
                        date that the bankruptcy petition is filed with the
                        court.

                    
	
                      Actual
                        discharge date

                    	
                      DATE(MM/DD/YYYY)

                    	
                      Actual
                        date that the Discharge Order is entered in the bankruptcy
                        docket.

                    
	
                      Actual
                        due date

                    	
                      DATE(MM/DD/YYYY)

                    	
                      Actual
                        due date of the next outstanding payment amount due from
                        the
                        mortgagor.

                    
	
                      Actual
                        eviction complete date

                    	
                      DATE(MM/DD/YYYY)

                    	
                      Actual
                        date that the eviction proceedings are completed by local
                        counsel.

                    
	
                      Actual
                        eviction start date

                    	
                      DATE(MM/DD/YYYY)

                    	
                      Actual
                        date that the eviction proceedings are commenced by local
                        counsel.

                    
	
                      Actual
                        first legal date

                    	
                      DATE(MM/DD/YYYY)

                    	
                      Actual
                        date that foreclosure counsel filed the first legal action
                        as defined by
                        state statute.

                    
	
                      Actual
                        MI claim amount filed

                    	
                      NUMBER(15,2)

                    	
                      The
                        amount of the claim that was filed by the servicer with the
                        PMI
                        company.

                    
	
                      Actual
                        MI claim filed date

                    	
                      DATE(MM/DD/YYYY)

                    	
                      Actual
                        date that the claim was submitted to the PMI company. 

                    
	
                      Actual
                        redemption end date

                    	
                      DATE(MM/DD/YYYY)

                    	
                      Actual
                        date that the foreclosure redemption period expires.

                    
	
                      Bankruptcy
                        Case Number

                    	
                      VARCHAR2(15)

                    	
                      The
                        court assigned case number of the bankruptcy filed by a party
                        with
                        interest in the property.

                    
	
                      Bankruptcy
                        chapter

                    	
                      VARCHAR2(2)

                      7=
                        Chapter 7 filed

                      11=
                        Chapter 11 filed

                      12=
                        Chapter 12 filed

                      13=
                        Chapter 13 filed

                    	
                      Chapter
                        of bankruptcy filed.

                    
	
                      Bankruptcy
                        flag

                    	
                      VARCHAR2(2)

                      Y=Active
                        Bankruptcy

                      N=No
                        Active Bankruptcy

                    	
                      Servicer
                        defined indicator that identifies that the property is an
                        asset in an
                        active bankruptcy case.

                    
	
                      Corporate
                        expense balance

                    	
                      NUMBER(10,2)

                    	
                      Total
                        of all cumulative expenses advanced by the servicer for non-escrow
                        expenses such as but not limited to: FC fees and costs, bankruptcy
                        fees
                        and costs, property preservation and property
                        inspections.

                    
	
                      Current
                        loan amount

                    	
                      NUMBER(10,2)

                    	
                      Current
                        unpaid principal balance of the loan as of the date of reporting
                        to Aurora
                        Master Servicing.

                    
	
                      Date
                        FC sale scheduled

                    	
                      DATE(MM/DD/YYYY)

                    	
                      Date
                        that the foreclosure sale is scheduled to be held.

                    
	
                      Date
                        relief/dismissal granted

                    	
                      DATE(MM/DD/YYYY)

                    	
                      Actual
                        date that the dismissal or relief from stay order is entered
                        by the
                        bankruptcy court.

                    
	
                      Date
                        REO offer accepted

                    	
                      DATE(MM/DD/YYYY)

                    	
                      Actual
                        date of acceptance of an REO offer.

                    
	
                      Date
                        REO offer received

                    	
                      DATE(MM/DD/YYYY)

                    	
                      Actual
                        date of receipt of an REO offer.

                    
	
                      Delinquency
                        flag

                    	
                      VARCHAR2(2)

                      Y=
                        90+ delinq. Not in FC, Bky or Loss mit 

                      N=Less
                        than 90 days delinquent

                    	
                      Servicer
                        defined indicator that indentifies that the loan is delinquent
                        but is not
                        involved in loss mitigation, foreclosure, bankruptcy or
                        REO.

                    
	
                      Delinquency
                        value

                    	
                      NUMBER(10,2)

                    	
                      Value
                        obtained typically from a BPO prior to foreclosure referral
                        not related to
                        loss mitigation activity. 

                    
	
                      Delinquency
                        value date

                    	
                      DATE(MM/DD/YYYY)

                    	
                      Date
                        that the delinquency valuation amount was completed by vendor
                        or property
                        management company.

                    
	
                      Delinquency
                        value source

                    	
                      VARCHAR2(15)

                      BPO=
                        Broker's Price Opinion Appraisal=Appraisal

                    	
                      Name
                        of vendor or management company that provided the delinquency
                        valuation
                        amount. 

                    
	
                      Escrow
                        balance/advance balance

                    	
                      NUMBER(10,2)

                    	
                      The
                        positive or negative account balance that is dedicated to
                        payment of
                        hazard insurance, property taxes, MI, etc. (escrow items
                        only)

                    
	
                      First
                        Vacancydate/ Occupancy status date

                    	
                      DATE(MM/DD/YYYY)

                    	
                      The
                        date that the most recent occupancy status was determined.
                        Typically the
                        date of the most recent property inspection.

                    
	
                      Foreclosure
                        actual sale date

                    	
                      DATE(MM/DD/YYYY)

                    	
                      Actual
                        date that the foreclosure sale was held.

                    
	
                      Foreclosure
                        attorney referral date

                    	
                      DATE(MM/DD/YYYY)

                    	
                      Actual
                        date that the loan was referred to local counsel to begin
                        foreclosure
                        proceedings.

                    
	
                      Foreclosure
                        flag

                    	
                      VARCHAR2(2)

                      Y=Active
                        foreclosure

                      N=No
                        active foreclosure

                    	
                      Servicer
                        defined indicator that identifies that the loan is involved
                        in foreclosure
                        proceedings.

                    
	
                      Foreclosure
                        valuation amount

                    	
                      NUMBER(15,2)

                    	
                      Value
                        obtained during the foreclosure process. Usually as a result
                        of a BPO and
                        typically used to calculate the bid.

                    
	
                      Foreclosure
                        valuation date

                    	
                      DATE(MM/DD/YYYY)

                    	
                      Date
                        that foreclosure valuation amount was completed by vendor
                        or property
                        management company.

                    
	
                      Foreclosure
                        valuation source

                    	
                      VARCHAR2(80)

                      BPO=
                        Broker's Price Opinion

                      Appraisal=Appraisal

                    	
                      Name
                        of vendor or management company that provided the foreclosure
                        valuation
                        amount. 

                    
	
                      Loan
                        type

                    	
                      VARCHAR2(2)

                      1=FHA
                        Residential

                      2=VA
                        Residential 

                      3=Conventional
                        w/o PMI 

                      4=Commercial
                        

                      5=FHA
                        Project 

                      6=Conventional
                        w/PMI 

                      7=HUD
                        235/265 

                      8=Daily
                        Simple Interest Loan 

                      9=Farm
                        Loan 

                      U=Unknown
                        

                      S=Sub
                        prime

                    	
                      Type
                        of loan being serviced generally defined by the existence
                        of certain types
                        of insurance. (ie: FHA, VA, conventional insured, conventional
                        uninsured,
                        SBA, etc.)

                    
	
                      Loss
                        mit approval date

                    	
                      DATE(MM/DD/YYYY)

                    	
                      The
                        date determined that the servicer and mortgagor agree to
                        pursue a defined
                        loss mitigation alternative.

                    
	
                      Loss
                        mit flag

                    	
                      VARCHAR2(2)
                        

                      Y=
                        Active loss mitigation 

                      N=No
                        active loss mitigation

                    	
                      Servicer
                        defined indicator that identifies that the loan is involved
                        in completing
                        aloss mitigation alternative. 

                    
	
                      Loss
                        mit removal date

                    	
                      DATE(MM/DD/YYYY)

                    	
                      The
                        date that the mortgagor is denied loss mitigation alternatives
                        or the date
                        that the loss mitigation alternative is completed resulting
                        in a current
                        or liquidated loan.

                    
	
                      Loss
                        mit type

                    	
                      VARCHAR2(2)
                        

                      L=
                        Loss Mitigation 

                      LT=Ligitation
                        pending 

                      NP=Pending
                        non-performing sale 

                      CH=
                        Charge off 

                      DI=
                        Deed in lieu 

                      FB=
                        Forbearance plan 

                      MO=Modification
                        

                      PC=Partial
                        claim 

                      SH=Short
                        sale 

                      VA=VA
                        refunding 

                    	
                      The
                        defined loss mitigation alternative identified on the loss
                        mit approval
                        date.

                    
	
                      Loss
                        mit value

                    	
                      NUMBER(10,2)
                        

                    	
                      Value
                        obtained typically from a BPO prior to foreclosure sale intended
                        to aid in
                        the completion of loss mitigation activity. 

                    
	
                      Loss
                        mit value date

                    	
                      DATE(MM/DD/YYYY)

                    	
                      Name
                        of vendor or management company that provided the loss mitigation
                        valuation amount. 

                    
	
                      Loss
                        mit value source

                    	
                      VARCHAR2(15)
                        

                      BPO=
                        Broker's Price Opinion 

                      Appraisal=Appraisal

                    	
                      Date
                        that the lostt mitigation valuation amount was completed
                        by vendor or
                        property management company.

                    
	
                      LPMI
                        Cost

                    	
                      NUMBER(7,7)

                    	
                      The
                        current premium paid to the PMI company for Lender Paid Mortgage
                        Insurance.

                    
	
                      MI
                        certificate number

                    	
                      VARCHAR2(15)

                    	
                      A
                        number that is assigned individually to the loan by the PMI
                        company at the
                        time of origination. Similar to the VA LGC/FHA Case Number
                        in purpose.
                        

                    
	
                      MI
                        claim amount paid

                    	
                      NUMBER(15,2)

                    	
                      The
                        amount paid to the servicer by the PMI company as a result
                        of submitting
                        an MI claim. 

                    
	
                      MI
                        claim funds received date

                    	
                      DATE(MM/DD/YYYY)

                    	
                      Actual
                        date that funds were received from the PMI company as a result
                        of
                        transmitting an MI claim.

                    
	
                      Occupancy
                        status

                    	
                      VARCHAR2(1)
                        

                      O=Owner
                        occupied 

                      T=Tenant
                        occupied 

                      U=Unknown
                        

                      V=Vacant

                    	
                      The
                        most recent status of the property regarding who if anyone
                        is occupying
                        the property. Typically a result of a routine property
                        inspection.

                    
	
                      Original
                        loan amount

                    	
                      NUMBER(10,2)

                    	
                      Amount
                        of the contractual obligations (ie: note and mortgage/deed
                        of
                        trust).

                    
	
                      Original
                        value amount

                    	
                      NUMBER(10,2)

                    	
                      Appraised
                        value of property as of origination typically determined
                        through the
                        appraisal process.

                    
	
                      Origination
                        date

                    	
                      DATE(MM/DD/YYYY)

                    	
                      Date
                        that the contractual obligations (ie: note and mortgage/deed
                        of trust) of
                        the mortgagor was executed.

                    
	
                      Post
                        petition due date

                    	
                      DATE(MM/DD/YYYY)

                    	
                      The
                        post petition due date of a loan involved in a chapter 13
                        bankruptcy.

                    
	
                      Property
                        condition

                    	
                      VARCHAR2(2)
                        

                      1=
                        Excellent 

                      2=Good
                        

                      3=Average
                        

                      4=Fair
                        

                      5=Poor
                        

                      6=Very
                        poor

                    	
                      Physical
                        condition of the property as most recently reported to the
                        servicer by
                        vendor or property management company.

                    
	
                      Property
                        type

                    	
                      VARCHAR2(2)
                        

                      1=Single
                        family 

                      2=Town
                        house 

                      3=Condo
                        

                      4=Multifamily
                        

                      5=Other
                        

                      6=Prefabricated
                        

                      B=Commercial
                        

                      C=Land
                        only 

                      7=Mobile
                        home 

                      U=Unknown
                        

                      D=Farm
                        

                      A=Church
                        

                      P=PUD
                        

                      R=Row
                        house 

                      O=Co-op
                        

                      M=Manufactured
                        housing 

                      24=
                        2-4 family 

                      CT=Condotel
                        

                      MU=Mixed
                        use 

                    	
                      Type
                        of property secured by mortgage such as: single family, 2-4
                        unit,
                        etc.

                    
	
                      Reason
                        for default

                    	
                      VARCHAR2(3)
                        

                      001=Death
                        of principal mtgr 

                      002=Illness
                        of principal mtgr 

                      003=Illness
                        of mtgr's family member 

                      004=Death
                        of mtgr's family member 

                      005=Marital
                        difficulties 

                      006=Curtailment
                        of income 

                      007=Excessive
                        obligations 

                      008=Abandonment
                        of property 

                      009=Distant
                        employee transfer 

                      011=Property
                        problem 

                      012=Inability
                        to sell property 

                      013=Inability
                        to rent property 

                      014=Military
                        service 

                      015=Other
                        

                      016=Unemployment
                        

                      017=Business
                        failure 

                      019=Casualty
                        loss 

                      022=Energy-Environment
                        costs 

                      023=
                        Servicing problems 

                      026=
                        Payment adjustment 

                      027=Payment
                        dispute 

                      029=Transfer
                        ownership pending 

                      030=Fraud
                        

                      031=Unable
                        to contact borrower 

                      INC=Incarceration

                    	
                      Cause
                        of delinquency as identified by mortgagor.

                    
	
                      REO
                        actual closing date 

                    	
                      DATE(MM/DD/YYYY)

                    	
                      The
                        actual date that the sale of the REO property closed
                        escrow.

                    
	
                      REO
                        flag

                    	
                      VARCHAR2(7)
                        

                      Y=Active
                        REO 

                      N=No
                        active REO 

                    	
                      Servicer
                        defined indicator that identifies that the property is now
                        Real Estate
                        Owned. 

                    
	
                      REO
                        list price adjustment amount

                    	
                      NUMBER(15,2)

                    	
                      The
                        most recent listing/pricing amount as updated by the servicer
                        for REO
                        properties. 

                    
	
                      REO
                        list price adjustment date

                    	
                      DATE(MM/DD/YYYY)

                    	
                      The
                        most recent date that the servicer advised the agent to make
                        an adjustment
                        to the REO listing price.

                    
	
                      REO
                        net sales proceeds

                    	
                      NUMBER(10,2)

                    	
                      The
                        actual REO sales price less closing costs paid. The net sales
                        proceeds are
                        identified within the HUD1 settlement statement.

                    
	
                      REO
                        original list date

                    	
                      DATE(MM/DD/YYYY)

                    	
                      The
                        initial/first date that the property was listed with an agent
                        as an
                        REO.

                    
	
                      REO
                        original list price

                    	
                      NUMBER(15,2)

                    	
                      The
                        initial/first price that was used to list the property with
                        an agent as an
                        REO.

                    
	
                      REO
                        repaired value

                    	
                      NUMBER(10,2)

                    	
                      The
                        projected value of the property that is adjusted from the
                        "as is" value
                        assuming necessary repairs have been made to the property
                        as determined by
                        the vendor/property management company.

                    
	
                      REO
                        sales price

                    	
                      NUMBER(10,2)

                    	
                      Actual
                        sales price agreed upon by both the purchaser and servicer
                        as documented
                        on the HUD1 settlement statement.

                    
	
                      REO
                        scheduled close date

                    	
                      DATE(MM/DD/YYYY)

                    	
                      The
                        date that the sale of the REO property is scheduled to close
                        escrow.

                    
	
                      REO
                        value (as is)

                    	
                      NUMBER(10,2)

                    	
                      The
                        value of the property without making any repairs as determined
                        by the
                        vendor/property management copmany. 

                    
	
                      REO
                        value date

                    	
                      DATE(MM/DD/YYYY)

                    	
                      Date
                        that the vendor or management company completed the valuation
                        of the
                        property resulting in the REO value (as is).

                    
	
                      REO
                        value source

                    	
                      VARCHAR2(15)
                        

                      BPO=
                        Broker's Price Opinion 

                      Appraisal=Appraisal

                    	
                      Name
                        of vendor or management company that provided the REO value
                        (as
                        is).

                    
	
                      Repay
                        first due date

                    	
                      DATE(MM/DD/YYYY)

                    	
                      The
                        due date of the first scheduled payment due under a forbearance
                        or
                        repayment plan agreed to by both the mortgagor and
                        servicer.

                    
	
                      Repay
                        next due date

                    	
                      DATE(MM/DD/YYYY)

                    	
                      The
                        due date of the next outstanding payment due under a forbearance
                        or
                        repayment plan agreed to by both the mortgagor and servicer.
                        

                    
	
                      Repay
                        plan broken/reinstated/closed date

                    	
                      DATE(MM/DD/YYYY)

                    	
                      The
                        servicer defined date upon which the servicer considers that
                        the plan is
                        no longer in effect as a result of plan completion or mortgagor's
                        failure
                        to remit payments as scheduled.

                    
	
                      Repay
                        plan created date

                    	
                      DATE(MM/DD/YYYY)

                    	
                      The
                        date that both the mortgagor and servicer agree to the terms
                        of a
                        forebearance or repayment plan.

                    
	
                      Restricted
                        escrow balance

                    	
                      NUMBER(10,2)

                    	
                      Money
                        held in escrow by the mortgage company through completion
                        of repairs to
                        property.

                    
	
                      Suspense
                        balance

                    	
                      NUMBER(10,2)

                    	
                      Money
                        submitted to the servicer, credited to the mortgagor's account
                        but not
                        allocated to principal, interest, escrow, etc.

                    
	
                      Zip
                        Code

                    	
                      VARCHAR2(5)

                    	
                      US
                        postal zip code that corresponds to property
                        location.

                    

            

          

           

           

           

          
            	
                    Field

                  	
                    Description

                  	
                    Decimal

                  	
                    Format
                      comment

                  
	
                    RPT_DATE

                  	
                    Period
                      Report Cutoff Date

                  	
                    n/a

                  	
                    YYYYMM

                  	 
	
                    Investor

                  	
                    Client
                      ID

                  	
                    n/a

                  	
                    3
                      digit alphanumeric

                  
	
                    Category

                  	
                    Client
                      ID 2nd level

                  	
                    n/a

                  	
                    3
                      digit alphanumeric

                  
	
                    loan_no

                  	
                    Servicer
                      Loan Number

                  	
                    n/a

                  	 	 
	
                    10
                      digit loan_no

                  	
                    Servicer
                      Loan Number in 10 digit format

                  	
                    n/a

                  	
                    10
                      digit

                  	 
	
                    inv_loanno

                  	
                    client
                      loan number

                  	
                    n/a

                  	 	 
	
                    int_rate

                  	
                    gross
                      scheduled interest rate

                  	
                    5

                  	 	 
	
                    sf_rate
                      

                  	
                    service
                      fee rate

                  	
                    5

                  	 	 
	
                    yield
                      

                  	
                    net
                      scheduled interest rate

                  	
                    5

                  	 	 
	
                    DUE_Date

                  	
                    borrower
                      due date as of cutoff

                  	
                    n/a

                  	
                    MM/DD/YY

                  
	
                    PI_CONst
                      

                  	
                    scheduled
                      principal and interest installment

                  	
                    2

                  	 	 
	
                    beg_sch_bal
                      

                  	
                    beginning
                      of month scheduled unpaid pricipal balance

                  	
                    2

                  	 	 
	
                    sch_Prn
                      

                  	
                    scheduled
                      pricipal installment

                  	
                    2

                  	 	 
	
                    Gross_Int
                      

                  	
                    scheduled
                      gross interest installment

                  	
                    2

                  	 	 
	
                    sch_net_int
                      

                  	
                    scheduled
                      net interest installment

                  	
                    2

                  	 	 
	
                    Svc_Fee
                      

                  	
                    scheduled
                      service fee

                  	
                    2

                  	 	 
	
                    Stop
                      Date

                  	
                    scheduled
                      installment stop advancing date

                  	
                    n/a

                  	
                    MM/DD/YY

                  
	
                    Stop
                      Prin 

                  	
                    current
                      month installment not advanced

                  	
                    2

                  	 	 
	
                    Stop
                      Int 

                  	
                    current
                      month installment not advanced

                  	
                    2

                  	 	 
	
                    BeG_PRN_BAL
                      

                  	
                    actual
                      beginning principal balance

                  	
                    2

                  	 	 
	
                    End_Prn_bal
                      

                  	
                    actual
                      ending principal balance

                  	
                    2

                  	 	 
	
                    prn_coll
                      

                  	
                    actual
                      principal collected during cutoff period

                  	
                    2

                  	 	 
	
                    int_coll
                      

                  	
                    actual
                      interest collected during cutoff period

                  	
                    2

                  	 	 
	
                    S_FEE_COLL
                      

                  	
                    actual
                      sf collected during cutoff period

                  	
                    2

                  	 	 
	
                    PIF
                      Date

                  	
                    paid
                      in full date or liquidation date

                  	
                    n/a

                  	
                    MM/DD/YY

                  
	
                    Pif_prin
                      

                  	
                    scheduled
                      principal payoff amount

                  	
                    2

                  	 	 
	
                    Curt
                      

                  	
                    actual
                      curtailment collections during cutoff

                  	
                    2

                  	 	 
	
                    Curt_Adj
                      

                  	
                    comp
                      interest on curtailment paid

                  	
                    2

                  	 	 
	
                    Pool
                      To Security 

                  	
                    pool
                      to security balance test

                  	
                    2

                  	 	 
	
                    Total
                      Prin Adj 

                  	
                    curtailment
                      + curtailment interest + pool to security adjustment

                  	
                    2

                  	 	 
	
                    Principal
                      Collections After Stop 

                  	
                    principal
                      collections on stop advance loans during period, after all
                      advanced
                      payments have been

                    repaid

                  	
                    2

                  	 	 
	
                    Interest
                      Collections After Stop 

                  	
                    net
                      interest collections on stop advance loans during period, after
                      all
                      advanced payments have been repaid

                  	
                    2

                  	 	 
	
                    PPP
                      

                  	
                    prepayment
                      penalty collections during the collection period

                  	
                    2

                  	 	 
	
                    Fee
                      Code W 

                  	
                    prepayment
                      penalty on curtailment collections during the collection
                      period

                  	
                    2

                  	 	 
	
                    Dlq_Prn
                      

                  	
                    cumulative
                      delinquent principal installments

                  	
                    2

                  	 	 
	
                    PrePay_Prn
                      

                  	
                    cumulative
                      prepaid principal installments

                  	
                    2

                  	 	 
	
                    Losses
                      

                  	
                    losses
                      on loans during the collection period

                  	
                    2

                  	 	 
	
                    End_Sch_bal
                      

                  	
                    ending
                      scheduled unpaid principal balance 

                  	
                    2

                  	 	 
	
                    REMITTANCE
                      

                  	
                    total
                      remittance amount per loan

                  	
                    2

                  	 	 

          

          

           

          

           

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

          FORM
            OF BASE LIQUIDATION REPORT

           

          

           

          
            	
                    Type
                      of Liquidation:

                  	
                    Neg.
                      Payoff

                  	
                    Investor
                      Loan Number:

                  	 
	
                    Loan
                      Number:

                  	 	
                    Liq
                      Report Log No:

                  	 
	
                    Lien
                      Position:

                  	 	
                    Report
                      Date:

                  	 
	
                    REMIC
                      #

                  	 	
                    Ending
                      Interest Rate:

                  	 
	
                    Original
                      Amount of Loan:

                  	 	
                    Fixed
                      or Adjustable:

                  	 
	
                    UPB
                      Accrued Int to frcl sale:

                  	 	 	 
	
                    Advanced
                      Delinquent Interest:

                  	 	 	 
	
                    Date
                      Borrower Paid To:

                  	 	 	 
	
                    Borrower's
                      Name:

                  	 	 	 
	
                    Property
                      Address:

                  	 	 	 
	 	 	 	 
	
                    MSP
                      Bank/Category:

                  	 	 	 
	
                    Note
                      Date:

                  	 	 	 
	
                    Date
                      of REO:

                  	 	 	 
	
                    Disposition
                      Date:

                  	 	 	 
	 	 	
                    Amount

                  	
                    Date
                      of Valuation

                  	
                    Type
                      of Valuation

                  
	
                    Market
                      Value

                  	
                    AS
                      IS:

                  	 	 	 
	 	
                    Repaired:

                  	 	 	 
	
                    Supplemental
                      Value

                  	
                    AS
                      IS:

                  	 	 	 
	 	
                    Repaired:

                  	 	 	 
	
                    REO
                      BPO Value:

                  	 	 	 	 
	
                    List
                      Price:

                  	 	 	 	 
	
                    Sales
                      Price:

                  	 	 	 	 
	
                    Proceeds

                  	 	 	
                    Expenses

                  	 
	
                    List
                      Price:

                  	 	 	
                    Servicing
                      Advances:

                  	 
	
                    Sales
                      Price:

                  	 	 	
                    Payee
                      70R01 Acquisition:

                  	 
	
                    Broker’s
                      Commission

                  	 	 	
                    Payee
                      75R60 REO:

                  	 
	
                    Bonus
                      Commission:

                  	 	 	
                    Payee
                      75R49 Foreclosure:

                  	 
	
                    Lien
                      Purchase/Paid Off:

                  	 	 	
                    Payee
                      75 R36 Escrow:

                  	 
	
                    Seller
                      Closing Costs:

                  	 	 	
                    Payee
                      75R52 Bankruptcy:

                  	 
	
                    Repair
                      Costs:

                  	 	 	
                    Discrepancy
                      Amount:

                  	 
	
                    Seller
                      Concessions:

                  	 	 	
                    Servicing
                      Advance Total:

                  	 
	
                    Other
                      Closing Costs:

                  	 	 	
                    Advances
                      Applied After Liquidation:

                  	 
	
                    Net
                      Proceeds:

                  	 	 	
                    Prior
                      Additional Advances:

                  	 
	 	 	 	
                    Escrow
                      Advance:

                  	 
	
                    Escrow
                      Balance:

                  	 	 	
                    Interest
                      On Advances:

                  	 
	
                    Suspense
                      Balance:

                  	 	 	
                    Other
                      Advances:

                  	 
	
                    Restricted
                      Escrow:

                  	 	 	
                    Servicing
                      Advance Holdbacks:

                  	 
	
                    Rental
                      Income Recevied:

                  	 	 	
                    Property
                      Inspection:

                  	 
	
                    Insurance
                      Settlement Received:

                  	 	 	
                    BPO:

                  	 
	
                    Other:

                  	 	 	
                    Lender
                      Placed Insurance:

                  	 
	
                    Total
                      Liquidation Proceeds:

                  	 	 	
                    Utilities:

                  	 
	 	 	 	
                    REO
                      Repair Costs:

                  	 
	
                    Total
                      Liquidation Expenses:

                  	 	 	
                    Foreclosure
                      Fees:

                  	 
	 	 	 	
                    Bankruptcy:

                  	 
	
                    Net
                      Liquidation Proceeds:

                  	 	 	
                    Eviction
                      Costs:

                  	 
	
                    Loan
                      Principal Balance:

                  	 	 	
                    Transfer
                      Tax:

                  	 
	
                    Realized
                      Gain/Loss Amount:

                  	 	 	
                    Reconveyance
                      Fees:

                  	 
	 	 	 	
                    Other
                      Holdbacks:

                  	 
	
                    Additional
                      Proceeds Applied:

                  	 	 	
                    Demand
                      Fee:

                  	 
	
                    Prior
                      Additional Proceeds:

                  	 	 	
                    Total
                      Holdbacks:

                  	 
	
                    Loss
                      Severity:

                  	 	 	
                    Other
                      Fees (Including Fee Code B):

                  	 
	 	 	 	
                    UPB
                      Accrued Interest to COE:

                  	 
	
                    Notes:
                      Base liq created per Eric Nelson NTH

                  	 	
                    Advanced
                      Delinquent Interest:

                  	 
	 	 	 	
                    Stopped
                      Delinquent Interest:

                  	 
	 	 	 	
                    Deferred
                      Interest:

                  	 
	 	 	 	
                    Additional
                      Interest:

                  	 
	 	 	 	
                    Total
                      Liquidation Expenses:

                  	 
	
                    Mgr.
                      Approval________________________

                  	 	
                    Corp.
                      Approval____________________________

                  

          

          

           

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

          EXHIBIT
            F

          

          SERVICING
            CRITERIA TO BE ADDRESSED IN ASSESSMENT OF COMPLIANCE

          

          The
            assessment of compliance to be delivered by [the Servicer] [Name of Subservicer]
            shall address, at a minimum, the criteria identified as below as “Applicable
            Servicing Criteria”:

          

          
            	
                    Servicing
                      Criteria

                  	
                    Applicable

                    Servicing

                    Criteria

                  
	
                    Reference

                  	
                    Criteria

                  	 
	 	
                    General
                      Servicing Considerations

                  	 
	 	 	 
	
                    1122(d)(1)(i)

                  	
                    Policies
                      and procedures are instituted to monitor any performance or
                      other triggers
                      and events of default in accordance with the transaction
                      agreements.

                  	
                    X

                  
	
                    1122(d)(1)(ii)

                  	
                    If
                      any material servicing activities are outsourced to third parties,
                      policies and procedures are instituted to monitor the third
                      party’s
                      performance and compliance with such servicing activities.

                  	
                    X

                  
	
                    1122(d)(1)(iii)

                  	
                    Any
                      requirements in the transaction agreements to maintain a back-up
                      servicer
                      for the mortgage loans are maintained.

                  	 
	
                    1122(d)(1)(iv)

                  	
                    A
                      fidelity bond and errors and omissions policy is in effect
                      on the party
                      participating in the servicing function throughout the reporting
                      period in
                      the amount of coverage required by and otherwise in accordance
                      with the
                      terms of the transaction agreements.

                  	
                    X

                  
	 	
                    Cash
                      Collection and Administration

                  	 
	
                    1122(d)(2)(i)

                  	
                    Payments
                      on mortgage loans are deposited into the appropriate custodial
                      bank
                      accounts and related bank clearing accounts no more than two
                      business days
                      following receipt, or such other number of days specified in
                      the
                      transaction agreements.

                  	
                    X

                  
	
                    1122(d)(2)(ii)

                  	
                    Disbursements
                      made via wire transfer on behalf of an obligor or to an investor
                      are made
                      only by authorized personnel.

                  	
                    X

                  
	
                    1122(d)(2)(iii)

                  	
                    Advances
                      of funds or guarantees regarding collections, cash flows or
                      distributions,
                      and any interest or other fees charged for such advances, are
                      made,
                      reviewed and approved as specified in the transaction
                      agreements.

                  	
                    X

                  
	
                    1122(d)(2)(iv)

                  	
                    The
                      related accounts for the transaction, such as cash reserve
                      accounts or
                      accounts established as a form of overcollateralization, are
                      separately
                      maintained (e.g., with respect to commingling of cash) as set
                      forth in the
                      transaction agreements.

                  	
                    X

                  
	
                    1122(d)(2)(v)

                  	
                    Each
                      custodial account is maintained at a federally insured depository
                      institution as set forth in the transaction agreements. For
                      purposes of
                      this criterion, “federally insured depository institution” with respect to
                      a foreign financial institution means a foreign financial institution
                      that
                      meets the requirements of Rule 13k-1(b)(1) of the Securities
                      Exchange
                      Act.

                  	
                    X

                  
	
                    1122(d)(2)(vi)

                  	
                    Unissued
                      checks are safeguarded so as to prevent unauthorized
                      access.

                  	
                    X

                  
	
                    1122(d)(2)(vii)

                  	
                    Reconciliations
                      are prepared on a monthly basis for all asset-backed securities
                      related
                      bank accounts, including custodial accounts and related bank
                      clearing
                      accounts. These reconciliations are (A) mathematically accurate;
                      (B)
                      prepared within 30 calendar days after the bank statement cutoff
                      date, or
                      such other number of days specified in the transaction agreements;
                      (C)
                      reviewed and approved by someone other than the person who
                      prepared the
                      reconciliation; and (D) contain explanations for reconciling
                      items. These
                      reconciling items are resolved within 90 calendar days of their
                      original
                      identification, or such other number of days specified in the
                      transaction
                      agreements.

                  	
                    X

                  
	 	
                    Investor
                      Remittances and Reporting

                  	 
	
                    1122(d)(3)(i)

                  	
                    Reports
                      to investors, including those to be filed with the Commission,
                      are
                      maintained in accordance with the transaction agreements and
                      applicable
                      Commission requirements. Specifically, such reports (A) are
                      prepared in
                      accordance with timeframes and other terms set forth in the
                      transaction
                      agreements; (B) provide information calculated in accordance
                      with the
                      terms specified in the transaction agreements; (C) are filed
                      with the
                      Commission as required by its rules and regulations; and (D)
                      agree with
                      investors’ or the trustee’s records as to the total unpaid principal
                      balance and number of mortgage loans serviced by the
                      Servicer.

                  	
                    X

                  
	
                    1122(d)(3)(ii)

                  	
                    Amounts
                      due to investors are allocated and remitted in accordance with
                      timeframes,
                      distribution priority and other terms set forth in the transaction
                      agreements.

                  	
                    X

                  
	
                    1122(d)(3)(iii)

                  	
                    Disbursements
                      made to an investor are posted within two business days to
                      the Servicer’s
                      investor records, or such other number of days specified in
                      the
                      transaction agreements.

                  	
                    X

                  
	
                    1122(d)(3)(iv)

                  	
                    Amounts
                      remitted to investors per the investor reports agree with cancelled
                      checks, or other form of payment, or custodial bank
                      statements.

                  	
                    X

                  
	 	
                    Pool
                      Asset Administration

                  	 
	
                    1122(d)(4)(i)

                  	
                    Collateral
                      or security on mortgage loans is maintained as required by
                      the transaction
                      agreements or related mortgage loan documents.

                  	
                     

                    X

                  
	
                    1122(d)(4)(ii)

                  	
                    Mortgage
                      loan and related documents are safeguarded as required by the
                      transaction
                      agreements.

                  	
                     

                    X

                  
	
                    1122(d)(4)(iii)

                  	
                    Any
                      additions, removals or substitutions to the asset pool are
                      made, reviewed
                      and approved in accordance with any conditions or requirements
                      in the
                      transaction agreements.

                  	
                     

                    X

                  
	
                    1122(d)(4)(iv)

                  	
                    Payments
                      on mortgage loans, including any payoffs, made in accordance
                      with the
                      related mortgage loan documents are posted to the Servicer’s obligor
                      records maintained no more than two business days after receipt,
                      or such
                      other number of days specified in the transaction agreements,
                      and
                      allocated to principal, interest or other items (e.g., escrow)
                      in
                      accordance with the related mortgage loan documents.

                  	
                    X

                  
	
                    1122(d)(4)(v)

                  	
                    The
                      Servicer’s records regarding the mortgage loans agree with the Servicer’s
                      records with respect to an obligor’s unpaid principal
                      balance.

                  	
                    X

                  
	
                    1122(d)(4)(vi)

                  	
                    Changes
                      with respect to the terms or status of an obligor’s mortgage loans (e.g.,
                      loan modifications or re-agings) are made, reviewed and approved
                      by
                      authorized personnel in accordance with the transaction agreements
                      and
                      related pool asset documents.

                  	
                    X

                  
	
                    1122(d)(4)(vii)

                  	
                    Loss
                      mitigation or recovery actions (e.g., forbearance plans, modifications
                      and
                      deeds in lieu of foreclosure, foreclosures and repossessions,
                      as
                      applicable) are initiated, conducted and concluded in accordance
                      with the
                      timeframes or other requirements established by the transaction
                      agreements.

                  	
                    X

                  
	
                    1122(d)(4)(viii)

                  	
                    Records
                      documenting collection efforts are maintained during the period
                      a mortgage
                      loan is delinquent in accordance with the transaction agreements.
                      Such
                      records are maintained on at least a monthly basis, or such
                      other period
                      specified in the transaction agreements, and describe the entity’s
                      activities in monitoring delinquent mortgage loans including,
                      for example,
                      phone calls, letters and payment rescheduling plans in cases
                      where
                      delinquency is deemed temporary (e.g., illness or
                      unemployment).

                  	
                    X

                  
	
                    1122(d)(4)(ix)

                  	
                    Adjustments
                      to interest rates or rates of return for mortgage loans with
                      variable
                      rates are computed based on the related mortgage loan
                      documents.

                  	
                    X

                  
	
                    1122(d)(4)(x)

                  	
                    Regarding
                      any funds held in trust for an obligor (such as escrow accounts):
                      (A) such
                      funds are analyzed, in accordance with the obligor’s mortgage loan
                      documents, on at least an annual basis, or such other period
                      specified in
                      the transaction agreements; (B) interest on such funds is paid,
                      or
                      credited, to obligors in accordance with applicable mortgage
                      loan
                      documents and state laws; and (C) such funds are returned to
                      the obligor
                      within 30 calendar days of full repayment of the related mortgage
                      loans,
                      or such other number of days specified in the transaction
                      agreements.

                  	
                    X

                  
	
                    1122(d)(4)(xi)

                  	
                    Payments
                      made on behalf of an obligor (such as tax or insurance payments)
                      are made
                      on or before the related penalty or expiration dates, as indicated
                      on the
                      appropriate bills or notices for such payments, provided that
                      such support
                      has been received by the servicer at least 30 calendar days
                      prior to these
                      dates, or such other number of days specified in the transaction
                      agreements.

                  	
                    X

                  
	
                    1122(d)(4)(xii)

                  	
                    Any
                      late payment penalties in connection with any payment to be
                      made on behalf
                      of an obligor are paid from the servicer’s funds and not charged to the
                      obligor, unless the late payment was due to the obligor’s error or
                      omission.

                  	
                    X

                  
	
                    1122(d)(4)(xiii)

                  	
                    Disbursements
                      made on behalf of an obligor are posted within two business
                      days to the
                      obligor’s records maintained by the servicer, or such other number
                      of days
                      specified in the transaction agreements.

                  	
                    X

                  
	
                    1122(d)(4)(xiv)

                  	
                    Delinquencies,
                      charge-offs and uncollectible accounts are recognized and recorded
                      in
                      accordance with the transaction agreements.

                  	
                    X

                  
	
                    1122(d)(4)(xv)

                  	
                    Any
                      external enhancement or other support, identified in Item 1114(a)(1)
                      through (3) or Item 1115 of Regulation AB, is maintained as
                      set forth in
                      the transaction agreements.

                  	
                    [X]

                  

          

          

          

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

      

      SCHEDULE
        1

      

      MORTGAGE
        LOAN SCHEDULE

      

      (AVAILABLE
        UPON REQUEST)

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      SCHEDULE
        2

      

      PREPAYMENT
        CHARGE SCHEDULE

      

      (AVAILABLE
        UPON REQUEST)

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      SCHEDULE
        3

      

      STANDARD
        FILE LAYOUT- DELINQUENCY REPORTING

      

      

      Exhibit
        : Standard
        File Layout - Delinquency Reporting

      

      
        	
                Column/Header
                  Name

              	
                Description

              	
                Decimal

              	
                Format
                  Comment

              
	
                SERVICER_LOAN_NBR

              	
                A
                  unique number assigned to a loan by the Servicer. This may be different
                  than the LOAN_NBR

              	 	
                 

              
	
                LOAN_NBR

              	
                A
                  unique identifier assigned to each loan by the originator.

              	 	
                 

              
	
                CLIENT_NBR

              	
                Servicer
                  Client Number

              	 	 
	
                SERV_INVESTOR_NBR

              	
                Contains
                  a unique number as assigned by an external servicer to identify
                  a group of
                  loans in their system.

              	 	
                 

              
	
                BORROWER_FIRST_NAME

              	
                First
                  Name of the Borrower.

              	 	 
	
                BORROWER_LAST_NAME

              	
                Last
                  name of the borrower.

              	 	 
	
                PROP_ADDRESS

              	
                Street
                  Name and Number of Property

              	 	
                 

              
	
                PROP_STATE

              	
                The
                  state where the property located.

              	 	
                 

              
	
                PROP_ZIP

              	
                Zip
                  code where the property is located.

              	 	
                 

              
	
                BORR_NEXT_PAY_DUE_DATE

              	
                The
                  date that the borrower's next payment is due to the servicer at
                  the end of
                  processing cycle, as reported by Servicer.

              	 	
                MM/DD/YYYY

              
	
                LOAN_TYPE

              	
                Loan
                  Type (i.e. FHA, VA, Conv)

              	 	
                 

              
	
                BANKRUPTCY_FILED_DATE

              	
                The
                  date a particular bankruptcy claim was filed.

              	 	
                MM/DD/YYYY

              
	
                BANKRUPTCY_CHAPTER_CODE

              	
                The
                  chapter under which the bankruptcy was filed.

              	 	
                 

              
	
                BANKRUPTCY_CASE_NBR

              	
                The
                  case number assigned by the court to the bankruptcy
                  filing.

              	 	
                 

              
	
                POST_PETITION_DUE_DATE

              	
                The
                  payment due date once the bankruptcy has been approved by the
                  courts

              	 	
                MM/DD/YYYY

              
	
                BANKRUPTCY_DCHRG_DISM_DATE

              	
                The
                  Date The Loan Is Removed From Bankruptcy. Either by Dismissal,
                  Discharged
                  and/or a Motion For Relief Was Granted. 

              	 	
                MM/DD/YYYY

              
	
                LOSS_MIT_APPR_DATE

              	
                The
                  Date The Loss Mitigation Was Approved By The Servicer

              	 	
                MM/DD/YYYY

              
	
                LOSS_MIT_TYPE

              	
                The
                  Type Of Loss Mitigation Approved For A Loan Such As;

              	 	 
	
                LOSS_MIT_EST_COMP_DATE

              	
                The
                  Date The Loss Mitigation /Plan Is Scheduled To End/Close

              	 	
                MM/DD/YYYY

              
	
                LOSS_MIT_ACT_COMP_DATE

              	
                The
                  Date The Loss Mitigation Is Actually Completed

              	 	
                MM/DD/YYYY

              
	
                FRCLSR_APPROVED_DATE

              	
                The
                  date DA Admin sends a letter to the servicer with instructions
                  to begin
                  foreclosure proceedings.

              	 	
                MM/DD/YYYY

              
	
                ATTORNEY_REFERRAL_DATE

              	
                Date
                  File Was Referred To Attorney to Pursue Foreclosure

              	 	
                MM/DD/YYYY

              
	
                FIRST_LEGAL_DATE

              	
                Notice
                  of 1st legal filed by an Attorney in a Foreclosure Action

              	 	
                MM/DD/YYYY

              
	
                FRCLSR_SALE_EXPECTED_DATE

              	
                The
                  date by which a foreclosure sale is expected to occur.

              	 	
                MM/DD/YYYY

              
	
                FRCLSR_SALE_DATE

              	
                The
                  actual date of the foreclosure sale.

              	 	
                MM/DD/YYYY

              
	
                FRCLSR_SALE_AMT

              	
                The
                  amount a property sold for at the foreclosure sale.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              
	
                EVICTION_START_DATE

              	
                The
                  date the servicer initiates eviction of the borrower.

              	 	
                MM/DD/YYYY

              
	
                EVICTION_COMPLETED_DATE

              	
                The
                  date the court revokes legal possession of the property from the
                  borrower.

              	 	
                MM/DD/YYYY

              
	
                LIST_PRICE

              	
                The
                  price at which an REO property is marketed.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              
	
                LIST_DATE

              	
                The
                  date an REO property is listed at a particular price.

              	 	
                MM/DD/YYYY

              
	
                OFFER_AMT

              	
                The
                  dollar value of an offer for an REO property.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              
	
                OFFER_DATE_TIME

              	
                The
                  date an offer is received by DA Admin or by the Servicer.

              	 	
                MM/DD/YYYY

              
	
                REO_CLOSING_DATE

              	
                The
                  date the REO sale of the property is scheduled to close.

              	 	
                MM/DD/YYYY

              
	
                REO_ACTUAL_CLOSING_DATE

              	
                Actual
                  Date Of REO Sale

              	 	
                MM/DD/YYYY

              
	
                OCCUPANT_CODE

              	
                Classification
                  of how the property is occupied.

              	 	
                 

              
	
                PROP_CONDITION_CODE

              	
                A
                  code that indicates the condition of the property.

              	 	
                 

              
	
                PROP_INSPECTION_DATE

              	
                The
                  date a property inspection is performed.

              	 	
                MM/DD/YYYY

              
	
                APPRAISAL_DATE

              	
                The
                  date the appraisal was done.

              	 	
                MM/DD/YYYY

              
	
                CURR_PROP_VAL

              	
                 The
                  current "as is" value of the property based on brokers price opinion
                  or
                  appraisal.

              	
                2

              	
                 

              
	
                REPAIRED_PROP_VAL

              	
                The
                  amount the property would be worth if repairs are completed pursuant
                  to a
                  broker's price opinion or appraisal.

              	
                2

              	
                 

              
	
                If
                  applicable:

              	
                 

              	 	
                 

              
	
                DELINQ_STATUS_CODE

              	
                FNMA
                  Code Describing Status of Loan

              	 	 
	
                DELINQ_REASON_CODE

              	
                The
                  circumstances which caused a borrower to stop paying on a loan.
                  Code
                  indicates the reason why the loan is in default for this
                  cycle.

              	 	 
	
                MI_CLAIM_FILED_DATE

              	
                Date
                  Mortgage Insurance Claim Was Filed With Mortgage Insurance
                  Company.

              	 	
                MM/DD/YYYY

              
	
                MI_CLAIM_AMT

              	
                Amount
                  of Mortgage Insurance Claim Filed

              	 	
                No
                  commas(,) or dollar signs ($)

              
	
                MI_CLAIM_PAID_DATE

              	
                Date
                  Mortgage Insurance Company Disbursed Claim Payment

              	 	
                MM/DD/YYYY

              
	
                MI_CLAIM_AMT_PAID

              	
                Amount
                  Mortgage Insurance Company Paid On Claim

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              
	
                POOL_CLAIM_FILED_DATE

              	
                Date
                  Claim Was Filed With Pool Insurance Company

              	 	
                MM/DD/YYYY

              
	
                POOL_CLAIM_AMT

              	
                Amount
                  of Claim Filed With Pool Insurance Company

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              
	
                POOL_CLAIM_PAID_DATE

              	
                Date
                  Claim Was Settled and The Check Was Issued By The Pool
                  Insurer

              	 	
                MM/DD/YYYY

              
	
                POOL_CLAIM_AMT_PAID

              	
                Amount
                  Paid On Claim By Pool Insurance Company

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              
	
                FHA_PART_A_CLAIM_FILED_DATE

              	
                 Date
                  FHA Part A Claim Was Filed With HUD

              	 	
                MM/DD/YYYY

              
	
                FHA_PART_A_CLAIM_AMT

              	
                 Amount
                  of FHA Part A Claim Filed

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              
	
                FHA_PART_A_CLAIM_PAID_DATE

              	
                 Date
                  HUD Disbursed Part A Claim Payment

              	 	
                MM/DD/YYYY

              
	
                FHA_PART_A_CLAIM_PAID_AMT

              	
                 Amount
                  HUD Paid on Part A Claim

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              
	
                FHA_PART_B_CLAIM_FILED_DATE

              	
                  Date
                  FHA Part B Claim Was Filed With HUD

              	 	
                MM/DD/YYYY

              
	
                FHA_PART_B_CLAIM_AMT

              	
                  Amount
                  of FHA Part B Claim Filed

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              
	
                FHA_PART_B_CLAIM_PAID_DATE

              	
                   Date
                  HUD Disbursed Part B Claim Payment

              	 	
                MM/DD/YYYY

              
	
                FHA_PART_B_CLAIM_PAID_AMT

              	
                 Amount
                  HUD Paid on Part B Claim

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              
	
                VA_CLAIM_FILED_DATE

              	
                 Date
                  VA Claim Was Filed With the Veterans Admin

              	 	
                MM/DD/YYYY

              
	
                VA_CLAIM_PAID_DATE

              	
                 Date
                  Veterans Admin. Disbursed VA Claim Payment

              	 	
                MM/DD/YYYY

              
	
                VA_CLAIM_PAID_AMT

              	
                 Amount
                  Veterans Admin. Paid on VA Claim

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              

      

       

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      

      Exhibit
        2: Standard
        File Codes - Delinquency Reporting

       

      The
        Loss
        Mit Type
        field
        should show the approved Loss Mitigation Code as follows: 

       

      
        	·  	
                ASUM-Approved
                  Assumption

              

      

       

      
        	·  	
                BAP-Borrower
                  Assistance Program

              

      

       

      
        	·  	
                CO-
                  Charge Off

              

      

       

      
        	·  	
                DIL-
                  Deed-in-Lieu

              

      

       

      
        	·  	
                FFA-
                  Formal Forbearance Agreement

              

      

       

      
        	·  	
                MOD-
                  Loan Modification

              

      

       

      
        	·  	
                PRE-
                  Pre-Sale

              

      

       

      
        	·  	
                SS-
                  Short Sale

              

      

       

      
        	·  	
                MISC-Anything
                  else approved by the PMI or Pool
                  Insurer

              

      

       

      NOTE:
        Wells
        Fargo Bank will accept alternative Loss Mitigation Types to those above,
        provided that they are consistent with industry standards. If Loss Mitigation
        Types other than those above are used, the Servicer must supply Wells Fargo
        Bank
        with a description of each of the Loss Mitigation Types prior to sending
        the
        file.

       

      The
        Occupant
        Code
        field
        should show the current status of the property code as follows:

       

      
        	·  	
                Mortgagor

              

      

       

      
        	·  	
                Tenant

              

      

       

      
        	·  	
                Unknown
                  

              

      

       

      
        	·  	
                Vacant

              

      

       

      The
        Property
        Condition
        field
        should show the last reported condition of the property as follows:

       

      
        	·  	
                Damaged

              

      

       

      
        	·  	
                Excellent

              

      

       

      
        	·  	
                Fair

              

      

       

      
        	·  	
                Gone

              

      

       

      
        	·  	
                Good

              

      

       

      
        	·  	
                Poor

              

      

       

      
        	·  	
                Special
                  Hazard

              

      

       

      
        	·  	
                Unknown

              

      

       

       

      The
        FNMA
        Delinquent Reason Code
        field
        should show the Reason for Delinquency as follows: 

      

      
        	
                Delinquency
                  Code

              	
                Delinquency
                  Description

              
	
                001

              	
                FNMA-Death
                  of principal mortgagor

              
	
                002

              	
                FNMA-Illness
                  of principal mortgagor

              
	
                003

              	
                FNMA-Illness
                  of mortgagor’s family member

              
	
                004

              	
                FNMA-Death
                  of mortgagor’s family member

              
	
                005

              	
                FNMA-Marital
                  difficulties

              
	
                006

              	
                FNMA-Curtailment
                  of income

              
	
                007

              	
                FNMA-Excessive
                  Obligation

              
	
                008

              	
                FNMA-Abandonment
                  of property

              
	
                009

              	
                FNMA-Distant
                  employee transfer

              
	
                011

              	
                FNMA-Property
                  problem

              
	
                012

              	
                FNMA-Inability
                  to sell property

              
	
                013

              	
                FNMA-Inability
                  to rent property

              
	
                014

              	
                FNMA-Military
                  Service

              
	
                015

              	
                FNMA-Other

              
	
                016

              	
                FNMA-Unemployment

              
	
                017

              	
                FNMA-Business
                  failure

              
	
                019

              	
                FNMA-Casualty
                  loss

              
	
                022

              	
                FNMA-Energy
                  environment costs

              
	
                023

              	
                FNMA-Servicing
                  problems

              
	
                026

              	
                FNMA-Payment
                  adjustment

              
	
                027

              	
                FNMA-Payment
                  dispute

              
	
                029

              	
                FNMA-Transfer
                  of ownership pending

              
	
                030

              	
                FNMA-Fraud

              
	
                031

              	
                FNMA-Unable
                  to contact borrower

              
	
                INC

              	
                FNMA-Incarceration

              

      

      

       

       

      The
        FNMA
        Delinquent Status Code
        field
        should show the Status of Default as follows: 

       

      

      
        	
                Status
                  Code

              	
                Status
                  Description

              
	
                09

              	
                Forbearance

              
	
                17

              	
                Pre-foreclosure
                  Sale Closing Plan Accepted

              
	
                24

              	
                Government
                  Seizure

              
	
                26

              	
                Refinance

              
	
                27

              	
                Assumption

              
	
                28

              	
                Modification

              
	
                29

              	
                Charge-Off

              
	
                30

              	
                Third
                  Party Sale

              
	
                31

              	
                Probate

              
	
                32

              	
                Military
                  Indulgence

              
	
                43

              	
                Foreclosure
                  Started

              
	
                44

              	
                Deed-in-Lieu
                  Started

              
	
                49

              	
                Assignment
                  Completed

              
	
                61

              	
                Second
                  Lien Considerations

              
	
                62

              	
                Veteran’s
                  Affairs-No Bid

              
	
                63

              	
                Veteran’s
                  Affairs-Refund

              
	
                64

              	
                Veteran’s
                  Affairs-Buydown

              
	
                65

              	
                Chapter
                  7 Bankruptcy

              
	
                66

              	
                Chapter
                  11 Bankruptcy

              
	
                67

              	
                Chapter
                  13 Bankruptcy

              

      

       

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Exhibit
        : Calculation
        of Realized Loss/Gain Form 332- Instruction Sheet

      NOTE:
        Do not net or combine items. Show all expenses individually and all credits
        as
        separate line items. Claim packages are due on the remittance report date.
        Late
        submissions may result in claims not being passed until the following month.
        The
        Servicer is responsible to remit all funds pending loss approval and /or
        resolution of any disputed items. 

      1.  

       

      2.  The
        numbers on the 332 form correspond with the numbers listed below.

       

      Liquidation
        and Acquisition Expenses:

       

      1.          
         The
        Actual Unpaid Principal Balance of the Mortgage Loan. For documentation,
        an
        Amortization Schedule from date of default through liquidation breaking out
        the
        net interest and servicing fees advanced is required.

       

      2.           
         The
        Total
        Interest Due less the aggregate amount of servicing fee that would have been
        earned if all delinquent payments had been made as agreed. For documentation,
        an
        Amortization Schedule from date of default through liquidation breaking out
        the
        net interest and servicing fees advanced is required.

       

      3.          
          Accrued
        Servicing Fees based upon the Scheduled Principal Balance of the Mortgage
        Loan
        as calculated on a monthly basis. For documentation, an Amortization Schedule
        from date of default through liquidation breaking out the net interest and
        servicing fees advanced is required.

       

      4-12.      
         Complete
        as applicable. Required documentation:

       

      *
        For
        taxes and insurance advances - see page 2 of 332 form - breakdown required
        showing period of
        coverage, base tax, interest, penalty. Advances prior to default require
        evidence of servicer efforts to recover advances.

       

      *
        For
        escrow advances - complete payment history  (to
        calculate advances from last positive escrow balance forward)

       

      *
        Other
        expenses -  copies of corporate advance history showing all payments

       

      *
        REO
        repairs > $1500 require explanation

       

      *
        REO
        repairs >$3000 require evidence of at least 2 bids.

       

      *
        Short
        Sale or Charge Off require P&L supporting the decision and WFB’s approved
        Officer Certificate 

       

      *
        Unusual
        or extraordinary items may require further documentation. 

       

      13.  The
        total
        of lines 1 through 12.

       

      3.  Credits:
        

       

      14-21.    
         Complete
        as applicable. Required documentation:

       

      *
        Copy of
        the HUD 1 from the REO sale. If a 3rd Party Sale, bid instructions
        and Escrow Agent / Attorney Letter
        of
        Proceeds Breakdown.

       

      *
        Copy of
        EOB for any MI or gov't guarantee 

       

      *
        All
        other credits need to be clearly defined on the 332
        form      
     

       

       

      
        	 	
                22.

              	
                The
                  total of lines 14 through 21.

              

      

       

      Please
        Note: For
        HUD/VA loans, use line (18a) for Part A/Initial proceeds and line (18b) for
        Part
        B/Supplemental proceeds.

       

      Total
        Realized Loss (or Amount of Any Gain)

       

      23. The
        total
        derived from subtracting line 22 from 13. If the amount represents a realized
        gain, show
        the
        amount in parenthesis ( ). 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Exhibit
        3A: Calculation
        of Realized Loss/Gain Form 332

      
         

        Prepared
          by: __________________   Date:
          _______________

        Phone:
          ______________________         Email
          Address:_____________________

         

        
          	
                  Servicer
                    Loan No.

                	 	
                  Servicer
                    Name

                	 	
                  Servicer
                    Address 

                   

                

        

         

        WELLS
          FARGO BANK, N.A. Loan No._____________________________

         

        Borrower's
          Name: _________________________________________________________

        Property
          Address: _________________________________________________________

         

        Liquidation
          Type: REO Sale  
          3rd
          Party Sale  
Short
          Sale 
Charge
          Off 

         

        Was
          this loan granted a Bankruptcy deficiency or cramdown  Yes                            
          No

        If
“Yes”,
          provide deficiency or cramdown amount
          ________________________________________

         

        Liquidation
          and Acquisition Expenses:

        

          
            	
                    (1)

                  	
                    Actual
                      Unpaid Principal Balance of Mortgage Loan

                  	
                    $
                      ______________

                  	
                    (1)

                  
	
                    (2)

                  	
                    Interest
                      accrued at Net Rate

                  	
                    ________________

                  	
                    (2)

                  
	
                    (3)

                  	
                    Accrued
                      Servicing Fees

                  	
                    ________________

                  	
                    (3)

                  
	
                    (4)

                  	
                    Attorney's
                      Fees

                  	
                    ________________

                  	
                    (4)

                  
	
                    (5)

                  	
                    Taxes
                      (see page 2)

                  	
                    ________________

                  	
                    (5)

                  
	
                    (6)

                  	
                    Property
                      Maintenance

                  	
                    ________________

                  	
                    (6)

                  
	
                    (7)

                  	
                    MI/Hazard
                      Insurance Premiums (see page 2)

                  	
                    ________________

                  	
                    (7)

                  
	
                    (8)

                  	
                    Utility
                      Expenses

                  	
                    ________________

                  	
                    (8)

                  
	
                    (9)

                  	
                    Appraisal/BPO

                  	
                    ________________

                  	
                    (9)

                  
	
                    (10)

                  	
                    Property
                      Inspections

                  	
                    ________________

                  	
                    (10)

                  
	
                    (11)

                  	
                    FC
                      Costs/Other Legal Expenses

                  	
                    ________________

                  	
                    (11)

                  
	
                    (12)

                  	
                    Other
                      (itemize)

                  	
                    $________________

                  	
                    (12)

                  
	
                    Cash
                      for Keys__________________________

                  	 	
                    ________________

                  	 
	
                    HOA/Condo
                      Fees_______________________

                  	 	
                    ________________

                  	 
	
                    ______________________________________

                  	 	
                    ________________

                  	 
	
                    ______________________________________

                  	 	
                    ________________

                  	 
	
                    Total
                      Expenses

                  	 	
                    $
                      _______________

                  	
                    (13)

                  
	
                    Credits:

                  	 	 	 
	
                    (14)

                  	
                    Escrow
                      Balance

                  	
                    $
                      _______________

                  	
                    (14)

                  
	
                    (15)

                  	
                    HIP
                      Refund

                  	
                    ________________

                  	
                    (15)

                  
	
                    (16)

                  	
                    Rental
                      Receipts

                  	
                    ________________

                  	
                    (16)

                  
	
                    (17)

                  	
                    Hazard
                      Loss Proceeds

                  	
                    ________________

                  	
                    (17)

                  
	
                    (18)

                  	
                    Primary
                      Mortgage Insurance / Gov’t Insurance

                  	
                    ________________

                  	
                    (18a)

                  
	 	
                    HUD
                      Part A

                  	 	 
	 	
                    HUD
                      Part B

                  	
                    ________________

                  	
                    (18b)

                  
	
                    (19)

                  	
                    Pool
                      Insurance Proceeds

                  	
                    ________________

                  	
                    (19)

                  
	
                    (20)

                  	
                    Proceeds
                      from Sale of Acquired Property

                  	
                    ________________

                  	
                    (20)

                  
	
                    (21)

                  	
                    Other
                      (itemize)

                  	
                    ________________

                  	
                    (21)

                  
	
                    _________________________________________

                  	 	
                    _________________

                  	 
	
                    _________________________________________

                  	
                     

                  	
                    _________________

                  	 
	
                    Total
                      Credits

                  	
                     $________________

                  	
                     

                  	
                    (22)

                  
	
                    Total
                      Realized Loss (or Amount of Gain)

                  	
                     $________________

                  	
                     

                  	
                    (23)

                  

          

           

          

          
            
              
                
                

              

              
                
                

                
                  

                

              

              
                
                

              

            

          

          

        

      

      Escrow
        Disbursement Detail

      

      

      
        	
                Type

                (Tax
                  /Ins.)

              	
                Date
                  Paid

              	
                Period
                  of Coverage

              	
                Total
                  Paid

              	
                Base
                  Amount

              	
                Penalties

              	
                Interest

              
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      SCHEDULE
        4

      

      STANDARD
        FILE LAYOUT- MASTER SERVICING

      

      
        	
                Standard
                  File Layout - Master Servicing 

              	 	 	 
	
                Column
                  Name

              	
                Description

              	
                Decimal

              	
                Format
                  Comment

              	
                Max
                  Size

              
	
                SER_INVESTOR_NBR

              	
                A
                  value assigned by the Servicer to define a group of loans.

              	
                 

              	
                Text
                  up to 10 digits

              	
                20

              
	
                LOAN_NBR

              	
                A
                  unique identifier assigned to each loan by the investor.

              	
                 

              	
                Text
                  up to 10 digits

              	
                10

              
	
                SERVICER_LOAN_NBR

              	
                A
                  unique number assigned to a loan by the Servicer. This may be different
                  than the LOAN_NBR.

              	
                 

              	
                Text
                  up to 10 digits

              	
                10

              
	
                BORROWER_NAME

              	
                The
                  borrower name as received in the file. It is not separated by first
                  and
                  last name.

              	
                 

              	
                Maximum
                  length of 30 (Last, First)

              	
                30

              
	
                SCHED_PAY_AMT

              	
                Scheduled
                  monthly principal and scheduled interest payment that a borrower
                  is
                  expected to pay, P&I constant.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                NOTE_INT_RATE

              	
                The
                  loan interest rate as reported by the Servicer.

              	
                4

              	
                Max
                  length of 6

              	
                6

              
	
                NET_INT_RATE

              	
                The
                  loan gross interest rate less the service fee rate as reported
                  by the
                  Servicer.

              	
                4

              	
                Max
                  length of 6

              	
                6

              
	
                SERV_FEE_RATE

              	
                The
                  servicer's fee rate for a loan as reported by the Servicer.
                  

              	
                4

              	
                Max
                  length of 6

              	
                6

              
	
                SERV_FEE_AMT

              	
                The
                  servicer's fee amount for a loan as reported by the Servicer.
                  

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                NEW_PAY_AMT

              	
                The
                  new loan payment amount as reported by the Servicer. 

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                NEW_LOAN_RATE

              	
                The
                  new loan rate as reported by the Servicer. 

              	
                4

              	
                Max
                  length of 6

              	
                6

              
	
                ARM_INDEX_RATE

              	
                The
                  index the Servicer is using to calculate a forecasted
                  rate.

              	
                4

              	
                Max
                  length of 6

              	
                6

              
	
                ACTL_BEG_PRIN_BAL

              	
                The
                  borrower's actual principal balance at the beginning of the processing
                  cycle.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                ACTL_END_PRIN_BAL

              	
                The
                  borrower's actual principal balance at the end of the processing
                  cycle.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                BORR_NEXT_PAY_DUE_DATE

              	
                The
                  date at the end of processing cycle that the borrower's next payment
                  is
                  due to the Servicer, as reported by Servicer.

              	
                 

              	
                MM/DD/YYYY

              	
                10

              
	
                SERV_CURT_AMT_1

              	
                The
                  first curtailment amount to be applied.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SERV_CURT_DATE_1

              	
                The
                  curtailment date associated with the first curtailment amount.
                  

              	
                 

              	
                MM/DD/YYYY

              	
                10

              
	
                CURT_ADJ_
                  AMT_1

              	
                The
                  curtailment interest on the first curtailment amount, if
                  applicable.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SERV_CURT_AMT_2

              	
                The
                  second curtailment amount to be applied.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SERV_CURT_DATE_2

              	
                The
                  curtailment date associated with the second curtailment
                  amount.

              	
                 

              	
                MM/DD/YYYY

              	
                10

              
	
                CURT_ADJ_
                  AMT_2

              	
                The
                  curtailment interest on the second curtailment amount, if
                  applicable.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SERV_CURT_AMT_3

              	
                The
                  third curtailment amount to be applied.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SERV_CURT_DATE_3

              	
                The
                  curtailment date associated with the third curtailment
                  amount.

              	
                 

              	
                MM/DD/YYYY

              	
                10

              
	
                CURT_ADJ_AMT_3

              	
                The
                  curtailment interest on the third curtailment amount, if
                  applicable.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                PIF_AMT

              	
                The
                  loan "paid in full" amount as reported by the Servicer.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                PIF_DATE

              	
                The
                  paid in full date as reported by the Servicer.

              	
                 

              	
                MM/DD/YYYY

              	
                10

              
	
                 

              	
                 

              	
                 

              	
                Action
                  Code Key: 15=Bankruptcy, 30=Foreclosure, , 60=PIF, 63=Substitution,
                  65=Repurchase,70=REO 

              	
                2

              
	
                ACTION_CODE

              	
                The
                  standard FNMA numeric code used to indicate the default/delinquent
                  status
                  of a particular loan.

              
	
                INT_ADJ_AMT

              	
                The
                  amount of the interest adjustment as reported by the
                  Servicer.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SOLDIER_SAILOR_ADJ_AMT

              	
                The
                  Soldier and Sailor Adjustment amount, if applicable.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                NON_ADV_LOAN_AMT

              	
                The
                  Non Recoverable Loan Amount, if applicable.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                LOAN_LOSS_AMT

              	
                The
                  amount the Servicer is passing as a loss, if applicable.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SCHED_BEG_PRIN_BAL

              	
                The
                  scheduled outstanding principal amount due at the beginning of
                  the cycle
                  date to be passed through to investors.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SCHED_END_PRIN_BAL

              	
                The
                  scheduled principal balance due to investors at the end of a processing
                  cycle.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SCHED_PRIN_AMT

              	
                The
                  scheduled principal amount as reported by the Servicer for the
                  current
                  cycle -- only applicable for Scheduled/Scheduled Loans.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SCHED_NET_INT

              	
                The
                  scheduled gross interest amount less the service fee amount for
                  the
                  current cycle as reported by the Servicer -- only applicable for
                  Scheduled/Scheduled Loans.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                ACTL_PRIN_AMT

              	
                The
                  actual principal amount collected by the Servicer for the current
                  reporting cycle -- only applicable for Actual/Actual
                  Loans.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                ACTL_NET_INT

              	
                The
                  actual gross interest amount less the service fee amount for the
                  current
                  reporting cycle as reported by the Servicer -- only applicable
                  for
                  Actual/Actual Loans.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                PREPAY_PENALTY_
                  AMT

              	
                The
                  penalty amount received when a borrower prepays on his loan as
                  reported by
                  the Servicer. 

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                PREPAY_PENALTY_
                  WAIVED

              	
                The
                  prepayment penalty amount for the loan waived by the
                  servicer.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              
	
                MOD_DATE

              	
                The
                  Effective Payment Date of the Modification for the loan.

              	
                 

              	
                MM/DD/YYYY

              	
                10

              
	
                MOD_TYPE

              	
                The
                  Modification Type.

              	
                 

              	
                Varchar
                  - value can be alpha or numeric

              	
                30

              
	
                DELINQ_P&I_ADVANCE_AMT

              	
                The
                  current outstanding principal and interest advances made by
                  Servicer.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	 	 	 	 	 

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      SCHEDULE
        5

      

      STANDARD
        FILE LAYOUT- SIMPLE INTEREST MORTGAGE LOANS

      

      
        	
                FldName

              	
                FldType

              	
                FldSize

              	
                PositionOffset

              	
                Comments

              
	 	 	 	 	 
	
                Loan_Nbr

                 

              	
                Text

                 

              	
                10

                 

              	
                (1:10)

                 

              	
                REQUIRED.
                  This is the loan Number as reported to the Investor. Data is left
                  justified - retaining any leading zeros that are part of the loan
                  number.

              
	 	 	 	 	 
	
                Svc_Seq_Num

                 

                 

                 

                 

              	
                Text

                 

                 

                 

                 

              	
                3

                 

                 

                 

                 

              	
                (11:13)
                  

                 

                 

                 

                 

              	
                Servicer's
                  Sequence Number - for each loan the transactions within the reporting
                  period are assigned a sequence number indicating the order in which
                  they
                  were processed. For example, the first transaction for each loan
                  would
                  have sequence number 1. The next transaction, if any, for that
                  loan would
                  have sequence number 2, and so on. Data is right justified and
                  may or may
                  not have leading zeros.

              
	 	 	 	 	 
	
                Trans_Code

                 

              	
                Text

                 

              	
                6

                 

              	
                (14:19)

                 

              	
                This
                  is the servicer's transaction code as generated by its accounting
                  system.
                  If supplied, the data is right justified and may or may not have
                  leading
                  zeros.

              
	 	 	 	 	 
	
                Trans_Amt

                 

                 

                 

                 

                 

              	
                Text

                 

                 

                 

                 

                 

              	
                11

                 

                 

                 

                 

                 

              	
                (20:30)
                  

                 

                 

                 

                 

                 

              	
                REQUIRED.
                  This is the transaction amount for the transaction being reported.
                  This is
                  not necessarily the same amount as the P&I constant, reported
                  elsewhere in this file. The data is right justified and may or
                  may not
                  have leading zeros. The data will have 2 decimal places which are
                  implied.
                  If the amount is negative, the negative sign must immediately precede
                  the
                  first value in the number. If no transaction took place in the
                  reporting
                  period, this field should be filled with zeros(0).

              
	 	 	 	 	 
	
                Last_Pay_Eff_Dt

              	
                Text

              	
                8

              	
                (31:38)

              	
                This
                  is the last effective payment date for the current transaction.
                  The format
                  should be YYYYMMDD.

              
	 	 	 	 	 
	
                Curr_Pay_Eff_Dt

                 

              	
                Text

                 

              	
                8

                 

              	
                (39:46)
                  

                 

              	
                REQUIRED.
                  This is the effective payment date of the current transaction.
                  If the
                  Trans_Amt for this transaction is zero, this date will be the same
                  as the
                  Last_Pay_Eff_Dt. The format should be YYYYMMDD.

              
	 	 	 	 	 
	
                Beg_Act_Prin_Bal

                 

                 

                 

              	
                Text

                 

                 

                 

              	
                11

                 

                 

                 

              	
                (47:57)
                  

                 

                 

                 

              	
                This
                  will be the beginning actual principal balance for the current
                  transaction. The data is right justified and may or may not have
                  leading
                  zeros. The data will have 2 decimal places which are implied. If
                  the
                  amount is negative, the negative sign must immediately precede
                  the first
                  value in the number.

              
	 	 	 	 	 
	
                Beg_Accr_Int_Recvd

                 

                 

                 

              	
                Tex

                 

                 

                 

              	
                11

                 

                 

                 

              	
                (58:68)
                  

                 

                 

                 

              	
                This
                  is the beginning balance of accrued interest that is unpaid before
                  processing the current transaction. The data is right justified
                  and may or
                  may not have leading zeros. The data will have 2 decimal places
                  which are
                  implied. If the amount is negative, the negative sign must immediately
                  precede the first value in the number.

              
	 	 	 	 	 
	
                Curr_Int_Accr

                 

                 

              	
                Text

                 

                 

              	
                11

                 

                 

              	
                (69:79)
                  

                 

                 

              	
                This
                  is the current interest accrual for this transaction. The data
                  is right
                  justified and may or may not have leading zeros. The data will
                  have 2
                  decimal places which are implied. If the amount is negative, the
                  negative
                  sign must immediately precede the first value in the
                  number.

              
	
                Applied_Int_Amt

                 

                 

                 

                 

              	
                Text

                 

                 

                 

                 

              	
                11

                 

                 

                 

                 

              	
                (80:90)
                  

                 

                 

                 

                 

              	
                This
                  is that portion of the transaction amount that is applied against
                  accrued
                  interest. The data is right justified and may or may not have leading
                  zeros. The data will have 2 decimal places which are implied. If
                  the
                  amount is negative, the negative sign must immediately precede
                  the first
                  value in the number.

              
	 	 	 	 	 
	
                End_Accr_Int_Recv

                 

                 

                 

              	
                Text

              	
                11

                 

                 

                 

              	
                (91:101)

                 

                 

                 

              	
                REQUIRED.
                  This is the ending balance of accrued interest remaining unpaid
                  after the
                  current transaction is processed. The data is right justified and
                  may or
                  may not have leading zeros. The data will have 2 decimal places
                  which are
                  implied. If the amount is negative, the negative sign must immediately
                  precede the first value in the number.

              
	 	 	 	 	 
	
                Applied_Princ_Amt

              	
                Text

              	
                11

              	
                (102:112)

              	
                This
                  is that portion of the transaction amount that is being applied
                  against
                  principal when this transaction is processed. The data is right
                  justified
                  and may or may not have leading zeros. The data will have 2 decimal
                  places
                  which are implied. If the amount is negative, the negative sign
                  must
                  immediately precede the first value in the number.

              
	 	 	 	 	 
	
                End_Act_Princ_Bal

              	
                Text

              	
                11

              	
                (113:123)

              	
                REQUIRED.
                  This is the ending actual principal balance remaining after the
                  current
                  transaction is processed. The data is right justified and may or
                  may not
                  have leading zeros. The data will have 2 decimal places which are
                  implied.
                  If the amount is negative, the negative sign must immediately precede
                  the
                  first value in the number.

              
	 	 	 	 	 
	
                Sched_Secur_Int

                 

                 

                 

                 

                 

                 

                 

              	
                Text

                 

                 

                 

                 

                 

                 

                 

              	
                9

                 

                 

                 

                 

                 

                 

                 

              	
                (124:132)

                 

                 

                 

                 

                 

                 

                 

              	
                For
                  Scheduled / Actual deals where the servicer is passing through
                  scheduled
                  interest each period, this is the gross scheduled security interest
                  due
                  from servicer. For these kinds of deals this amount is to be supplied
                  whether or not a payment is being reported. When more than one
                  transaction
                  is being reported on a loan, this field would be populated only
                  for the
                  transaction with sequence number 1. The data is right justified
                  and may or
                  may not have leading zeros. The data will have 2 decimal places
                  which are
                  implied. If the amount is negative, the negative sign must immediately
                  precede the first value in the number.

              
	 	 	 	 	 
	
                Serv_Fee_Amt

                 

                 

                 

                 

              	
                Text

                 

                 

                 

                 

              	
                9

                 

                 

                 

                 

              	
                (133:141)
                  

                 

                 

                 

                 

              	
                This
                  is the dollar amount of the servicer's fee associated with the
                  current
                  transaction only (each transaction may have a Serv_Fee_Amt associated
                  with
                  it). The data is right justified and may or may not have leading
                  zeros.
                  The data will have 2 decimal places which are implied. If the amount
                  is
                  negative, the negative sign must immediately precede the first
                  value in
                  the number.

              
	 	 	 	 	 
	
                Beg_Defer_Bal

                 

                 

                 

              	
                Text

                 

                 

                 

              	
                9

                 

                 

                 

              	
                (142:150)
                  

                 

                 

                 

              	
                This
                  is the beginning balance of the deferred amount (if any) for the
                  current
                  transaction. The data is right justified and may or may not have
                  leading
                  zeros. The data will have 2 decimal places which are implied. If
                  the
                  amount is negative, the negative sign must immediately precede
                  the first
                  value in the number.

              
	 	 	 	 	 
	
                Chg_Defer_Bal

                 

                 

                 

              	
                Text

                 

                 

                 

              	
                9

                 

                 

                 

              	
                (151:159)
                  

                 

                 

                 

              	
                This
                  is that portion of the transaction amount for the current transaction
                  that
                  is applied to the deferred amount. The data is right justified
                  and may or
                  may not have leading zeros. The data will have 2 decimal places
                  which are
                  implied. If the amount is negative, the negative sign must immediately
                  precede the first value in the number.

              
	 	 	 	 	 
	
                End_Defer_Bal

                 

                 

                 

              	
                Text

                 

                 

                 

              	
                9

                 

                 

                 

              	
                (160:168)
                  

                 

                 

                 

              	
                REQUIRED.
                  This is the ending balance of the deferred amount after the current
                  transaction is processed. The data is right justified and may or
                  may not
                  have leading zeros. The data will have 2 decimal places which are
                  implied.
                  If the amount is negative, the negative sign must immediately precede
                  the
                  first value in the number.

              
	 	 	 	 	 
	
                Net_Int_Exc_Short

                 

                 

                 

                 

                 

                 

                 

              	
                Text

                 

                 

                 

                 

                 

                 

                 

              	
                9

                 

                 

                 

                 

                 

                 

                 

              	
                (169:177)
                  

                 

                 

                 

                 

                 

                 

                 

              	
                Net
                  Simple Interest Excess / Shortfall is the difference between the
                  net
                  interest actually received by the servicer and the net interest
                  passed
                  through to the Investors with respect to current transaction (which
                  is not
                  a payment in full). The data is right justified and may or may
                  not have
                  leading zeros. The data will have 2 decimal places which are implied.
                  If
                  the amount is negative, the negative sign must immediately precede
                  the
                  first value in the number. Note, if this field is populated, then
                  the
                  fields <Prepay_Int_Exc_Short> and <Net_Int_Advance> will be
                  zero-filled. Only one of these three fields should contain a
                  value.

              
	 	 	 	 	 
	
                Prepay_Int_Exc_Short

                 

                 

                 

                 

                 

                 

              	
                Text

                 

                 

                 

                 

                 

                 

              	
                9

                 

                 

                 

                 

                 

                 

              	
                (178:186)
                  

                 

                 

                 

                 

                 

                 

              	
                Prepayment
                  Interest Excess / Shortfall is the difference between the net interest
                  actually received by the servicer and the net interest passed through
                  to
                  the Investors with respect to current transaction (which is a payment
                  in
                  full). The data is right justified and may or may not have leading
                  zeros.
                  The data will have 2 decimal places which are implied. If the amount
                  is
                  negative, the negative sign must immediately precede the first
                  value in
                  the number. Note, if this field is populated, then the fields
                  <Net_Int_Exc_Short> and <Net_Int_Advance> will be zero-filled.
                  Only one of these three fields should contain a value.

              
	 	 	 	 	 
	
                Net_Int_Advanc

                 

                 

                 

                 

                 

                 

                 

              	
                Text

                 

                 

                 

                 

                 

                 

              	
                9

                 

                 

                 

                 

                 

                 

              	
                (187:195)
                  

                 

                 

                 

                 

                 

                 

              	
                Net
                  Interest Advance is the difference between the net interest actually
                  received by the servicer and the net interest passed through to
                  the
                  Investors for those loans on which no payment has be received during
                  the
                  reporting period. The data is right justified and may or may not
                  have
                  leading zeros. The data will have 2 decimal places which are implied.
                  If
                  the amount is negative, the negative sign must immediately precede
                  the
                  first value in the number. Note, if this field is populated, then
                  the
                  fields <Prepay_Int_Exc_Short> and <Net_Int_Exc_Short> will be
                  zero-filled. Only one of these three fields should contain a
                  value.

              
	 	 	 	 	 
	
                Borr_Next_Due_Dt

              	
                Text

              	
                8

              	
                (196:203)

              	
                REQUIRED.
                  This is the borrower's next payment due date. The format should
                  be
                  YYYYMMDD.

              
	 	 	 	 	 
	
                Borr_Name

              	
                Text

              	
                30

              	
                (204:233)
                  

              	
                This
                  is the borrower's name. If possible, please supply as LastName
                  followed by
                  as much of the first name as will fit ("Smith, John"). The data
                  should be
                  left justified.

              
	 	 	 	 	 
	
                Pi_Pay_Amt

                 

                 

                 

              	
                Text

                 

                 

                 

              	
                9

                 

                 

                 

              	
                (234:242)
                  

                 

                 

                 

              	
                This
                  is the P&I constant payment required under the note. This amount may
                  or may not be the same as the amount reported in the <Trans_Amt>
                  field. The data is right justified and may or may not have leading
                  zeros.
                  The data will have 2 decimal places which are implied. If the amount
                  is
                  negative, the negative sign must immediately precede the first
                  value in
                  the number.

              
	 	 	 	 	 
	
                Gross_Note_Rate

                 

                 

              	
                Text

                 

                 

              	
                6

                 

                 

              	
                (243:248)
                  

                 

                 

              	
                This
                  is the current gross loan rate in effect for the current transaction.
                  The
                  data is right justified and may or may not have leading zeros.
                  The data
                  will have 4 decimal places which are implied.

              
	 	 	 	 	 
	
                Serv_Fee_Rate

                 

                 

                 

                 

              	
                Text

                 

                 

                 

                 

              	
                6

                 

                 

                 

                 

              	
                (249:254)
                  

                 

                 

                 

                 

              	
                This
                  is the servicer's fee rate, if fee is expressed as a rate rather
                  than as a
                  fixed amount. The data is right justified and may or may not have
                  leading
                  zeros. The data will have 4 decimal places which are implied. If
                  the
                  amount is negative, the negative sign must immediately precede
                  the first
                  value in the number.

              
	 	 	 	 	 
	
                Action_Code

              	
                Text

              	
                3

              	
                (255:257)

              	
                This
                  will be the servicer's reported Action Code. If the code is supplied
                  the
                  data should be left justified.

              
	 	 	 	 	 
	
                Reversal_Flag

                 

              	
                Text

                 

              	
                1

                 

              	
                (258:258)

                 

              	
                This
                  field will Indicate whether the transaction reported is a reversal.
                  "Y"
                  will indicate a reversal. Any other value indicates that the transaction
                  is not a reversal.

              

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      SCHEDULE
        6

      

      SERVICING
        ADVANCE SCHEDULE

      

      [LOAN
        NUMBER] [PRE-CUT-OFF
        DATE ADVANCE
        AMOUNT]

      

      (AVAILABLE
        UPON REQUEST)

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      SCHEDULE
        7

      

      SCHEDULED
        MORTGAGE LOANS AS OF THE CUT-OFF DATE

      

      (AVAILABLE
        UPON REQUEST)Exhibit 10.1

 

THIRD AMENDMENT TO CREDIT AND SECURITY AGREEMENT

 

THIS THIRD AMENDMENT TO CREDIT AND
SECURITY AGREEMENT (this “Amendment”) dated as of July 11, 2006 by and among FIVE STAR QUALITY CARE, INC. (the
“Borrower”), each of the parties identified as “Guarantor” on the signature pages hereto (each a “Guarantor”),
and WACHOVIA BANK, NATIONAL ASSOCIATION, as Lender (the “Lender”).

 

WHEREAS, the Borrower and the Lender have entered into that certain Credit and Security Agreement dated as of May 9, 2005 (as amended and in effect immediately prior to the date hereof, the “Credit Agreement”); and

 

WHEREAS, the Borrower and the Lender desire to amend certain provisions of the Credit Agreement on the terms and conditions contained herein.

 

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the parties hereto, the parties hereto hereby agree as follows:

 

Section 1.  Specific Amendments to Credit Agreement.  The parties hereto agree that the Credit Agreement is amended as follows:

 

(a)          The Credit Agreement is amended by restating in full the definitions of “Borrowing Base” and “Termination Date” contained Section 1.1 as follows: 

 

“Borrowing Base” means an amount equal to 85% of the amount Eligible Accounts, as determined and adjusted pursuant to Section 2.12.

 

“Termination Date” means May 8, 2008 or such later date to which the Termination Date may be extended pursuant to Section 2.11.

 

(b)          The Credit Agreement is amended by deleting in full the definition of “Tangible Net Worth” contained in Section 1.1.  

 

(c)          Section 10.1. (a) of the Credit Agreement is amended and restated in its entirety as follows: 

 

(a)          Maximum Leverage Ratio.  The ratio of (i) Indebtedness (other than Permitted LC Debt) of the Borrower and its Subsidiaries to (ii) EBITDA for the four consecutive fiscal quarters most recently ended prior to the date of determination, to exceed 5.0 to 1.0 at any time.

 

 

 

 

 

 

(d)          Section 10.1 (c) of the Credit Agreement is amended and restated in its entirety as follows:

(c)          [Intentionally Omitted]

 

(e)          The Credit Agreement is amended by deleting Exhibit H thereto and substituting in its place Exhibit H attached hereto. 

 

Section 2.  Specific Amendment to Fee Letter.  The parties hereto agree that the second full paragraph of the second page of the Fee Letter is amended and restated as follows:

 

The term “Applicable Margin” means 1.50% with respect to LIBOR Loans and 0.5% with respect to Base Rate Loans.  

 

Section 3.  Conditions Precedent.  The effectiveness of this Amendment is subject to receipt by the Lender of each of the following, each in form and substance satisfactory to the Lender:

 

(a)         A counterpart of this Amendment duly executed by the Borrower and each Guarantor; 

 

(b)        Borrower shall have paid the Fees payable under the Fee Letter payable with respect to extensions of the Termination Date pursuant to Section 2.11 of the Credit Agreement; and 

 

(c)         Such other documents, instruments and agreements as the Lender may reasonably request.

 

Section 4.  Effectiveness. Upon satisfaction of the conditions precedent contained in Section 4, this Amendment shall be deemed to be effective as of the date hereof.  

 

Section 5.  Representations.  The Borrower represents and warrants to the Lender that:

 

(a)         Authorization.  The Borrower has the right and power, and has taken all necessary action to authorize it, to execute and deliver this Amendment and to perform its obligations hereunder and under the Credit Agreement and the Fee Letter, each as amended by this Amendment, in accordance with their respective terms.  This Amendment has been duly executed and delivered by a duly authorized officer of the Borrower and this Amendment, the Credit Agreement and the Fee Letter, each as amended by this Amendment, is a legal, valid and binding obligation of the Borrower enforceable against the Borrower in accordance with its respective terms except as (i) the enforceability thereof may be limited by bankruptcy, insolvency or similar laws affecting creditors rights generally and
(ii) the availability of equitable remedies may be limited by equitable principles of general applicability.

 

(b)        Compliance with Laws, etc.  The execution and delivery by the Borrower of this Amendment and the performance by the Borrower of this Amendment, the Credit Agreement and 

 

– 2 –

 

 

 

the Fee Letter, each as amended by this Amendment, in accordance with their respective terms, do not and will not, by the passage of time, the giving of notice or otherwise:  (i) require any Governmental Approval or violate any Applicable Law relating to any Loan Party; (ii) conflict with, result in a breach of or constitute a default under the organizational documents of any Loan Party, or any indenture, agreement or other instrument to which any Loan Party is a party or by which it or any of its respective properties may be bound; or (iii) result in or require the creation or imposition of any Lien upon or with respect to any property now owned or hereafter acquired by any Loan Party.

 

(c)         No Default.  No Default or Event of Default has occurred and is continuing as of the date hereof nor will exist immediately after giving effect to this Amendment.

 

Section 6.  Reaffirmation of Representations by Borrower.  The Borrower hereby repeats and reaffirms all representations and warranties made by the Borrower to the Lender in the Credit Agreement and the other Loan Documents to which it is a party on and as of the date hereof and after giving effect to this Amendment with the same force and effect as if such representations and warranties were set forth in this Amendment in full.

 

Section 7.  Reaffirmation of Guaranty by Guarantors.  Each Guarantor hereby reaffirms its continuing obligations to the Lender under Article XII of the Credit Agreement and agrees that the transactions contemplated by this Amendment shall not in any way affect the validity and enforceability of its obligations under Article XII of the Credit Agreement, or reduce, impair or discharge the obligations of such Guarantor thereunder.

 

Section 8.  Certain References.  Each reference to the Credit Agreement and the Fee Letter in any of the Loan Documents shall be deemed to be a reference to the Credit Agreement and the Fee Letter, as applicable, as amended by this Amendment.  

 

Section 9.  Expenses.  The Borrower shall reimburse the Lender upon demand for all costs and expenses (including attorneys’ fees) incurred by the Lender in connection with the preparation, negotiation and execution of this Amendment and the other agreements and documents executed and delivered in connection herewith.

 

Section 10.  Benefits.  This Amendment shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors and assigns.

 

Section 11.  GOVERNING LAW.  THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS EXECUTED, AND TO BE FULLY PERFORMED, IN SUCH STATE.

 

Section 12.  Effect.  Except as expressly herein amended, the terms and conditions of the Credit Agreement, the Fee Letter and the other Loan Documents remain in full force and effect.  The amendments contained herein shall be deemed to have prospective application only, unless otherwise specifically stated herein.

 

– 3 –

 

 

 

 

Section 13.  Counterparts.  This Amendment may be executed in any number of counterparts, each of which shall be deemed to be an original and shall be binding upon all parties, their successors and assigns.

 

Section 14.  Definitions.  All capitalized terms not otherwise defined herein are used herein with the respective definitions given them in the Credit Agreement.

 

[Signatures on Next Page]

 

– 4 –

 

 

 

 

IN WITNESS WHEREOF, the parties hereto have caused this Third Amendment to Credit and Security Agreement to be executed as of the date first above written.

 

	
            THE BORROWER:
 
	
             
 
	
            FIVE STAR QUALITY CARE, INC.
 
	
             
 
	
             
 
	
            By: /s/ Bruce J. Mackey Jr.          

	
            Name: Bruce J. Mackey Jr.
 
	
            Title: Treasurer, Chief Financial Officer and Assistant Secretary

	
             
 
	
             
 
	
            THE LENDER:
 
	
             
 
	
            WACHOVIA BANK, NATIONAL ASSOCIATION
 
	
             
 
	
             
 
	
            By: /s/ Cynthia A. Bean          
 
	
            Name: Cynthia A. Bean

	
            Title: Vice President

 

 

 

 

 

 

 

 

[Signatures Continued on Next Page]

 

[Signature Page to Third Amendment to Credit and Security Agreement 

with Five Star Quality Care, Inc.]

 

	
            THE GUARANTORS:
 
	
             
 
	
            Alliance Pharmacy Services, LLC
 
	
            Five Star Quality Care-CA, Inc.
 
	
            Five Star Quality Care-IA, Inc.  
 
	
            Five Star Quality Care-NE, Inc.
 
	
            The Heartlands Retirement Community - Ellicott City I, Inc.
 
	
            Five Star Quality Care-AZ, LLC
 
	
            Five Star Quality Care-CA, LLC
 
	
            Five Star Quality Care-Colorado, LLC
 
	
            Five Star Quality Care-CT, LLC
 
	
            Five Star Quality Care-GA, LLC
 
	
            Five Star Quality Care-IA, LLC
 
	
            Five Star Quality Care-MO, LLC
 
	
            Five Star Quality Care-NE, LLC
 
	
            Five Star Quality Care-WI, LLC  
 
	
            Five Star Quality Care-WY, LLC
 
	
            Five Star Quality Care-FL, LLC
 
	
            Five Star Quality Care-KS, LLC
 
	
            Five Star Quality Care-MD, LLC
 
	
            Five Star Quality Care-NC, LLC
 
	
            Five Star Quality Care-VA, LLC
 
	
            FS Lafayette Tenant Trust
 
	
            FS Leisure Park Tenant Trust
 
	
            FS Lexington Tenant Trust
 
	
            FS Tenant Pool I Trust
 
	
            FS Tenant Pool II Trust
 
	
            FS Tenant Pool III Trust
 
	
            FS Tenant Pool IV Trust
 
	
            Morningside of Belmont, LLC
 
	
            Morningside of Gallatin, LLC
 
	
            Morningside of Springfield, LLC
 
	
            FSQC FUNDING CO., LLC
 
	
            FIVE STAR QUALITY CARE-CA II, LLC
 
	
            FIVE STAR QUALITY CARE TRUST
 
	
            FS TENANT HOLDING COMPANY TRUST
 
	
             
 
	
            By: /s/ Bruce J. Mackey Jr.          
 
	
            Name: Bruce J. Mackey Jr.

	
            Title: Treasurer, Chief Financial Officer and Assistant Secretary
 

 

 

[Signatures Continued on Next Page]

[Signature Page to Third Amendment to Credit and Security Agreement 
with Five Star Quality Care, Inc.]

 

	
            THE GUARANTORS (cont.):
 
	
             
 
	
             
 
	
            MORNINGSIDE OF BELLGRADE, RICHMOND, LLC  
 
	
            MORNINGSIDE OF CHARLOTTESVILLE, LLC  
 
	
            MORNINGSIDE OF NEWPORT NEWS, LLC
 
	
            MORNINGSIDE OF SKIPWITH-RICHMOND, LLC
 
	
             
 
	
            By:  LifeTrust America, Inc., its Member
 
	
             
 
	
             
 
	
             
 
	
            By: /s/ Bruce J. Mackey Jr.          

	
            Name: Bruce J. Mackey Jr.
 
	
            Title: Treasurer, Chief Financial Officer and Assistant Secretary

	
             
 
	
             
 
	
            Morningside of Alabama, L.P.
 
	
            Morningside of Anderson, L.P.
 
	
            Morningside of Athens, Limited Partnership
 
	
            Morningside of Columbus, L.P.
 
	
            Morningside of Dalton, Limited Partnership
 
	
            Morningside of Decatur, L.P.
 
	
            Morningside of Evans, Limited Partnership
 
	
            Morningside of Greenwood, L.P.
 
	
            Morningside of Kentucky, Limited Partnership
 
	
             
 
	
            By:  LifeTrust America, Inc., its General Partner
 
	
             
 
	
             
 
	
            By: /s/ Bruce J. Mackey Jr.          

	
            Name: Bruce J. Mackey Jr.
 
	
            Title: Treasurer, Chief Financial Officer and Assistant Secretary
 

 

 

 

 

EXHIBIT H

 

FORM OF BORROWING BASE CERTIFICATE

 

_______________, 200_

 

Wachovia Bank, National Association

One Wachovia Center

301 South College Street

Mail Code:  NC0172

Charlotte, North Carolina  28288-0172

Attention:  David M. Blackman

Ladies and Gentlemen:

 

Reference is made to that certain Credit and Security Agreement dated as of May 9, 2005 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), by and among Five Star Quality Care, Inc. (the “Borrower”), the Subsidiaries of the Borrower from time to time party to the Credit Agreement as Guarantors, and Wachovia Bank, National Association (the “Lender”).  Capitalized terms used herein, and not otherwise defined herein, have their respective meanings given them in the Credit Agreement.

 

Pursuant to Section 9.4.(m) of the Credit Agreement, the undersigned hereby certifies to the Lender as follows:

 

	
             
 	
            (1)
 	
            The undersigned is the _____________________ of the Borrower.
 

 

	
             
 	
            (2)
 	
            As of ______________, 20__, the Borrowing Base is as follows:
 

 

	
            Eligible Accounts

 
 	
            $_____________
 	
             
 
	
            Total Borrowing Base

 
 	
            X .85
 	
            $_____________
 

 

	
             
 	
            (3)
 	
            All adjustments and calculations related to the amounts set forth in 1 above are attached as Schedule 1 hereto.
 

 

IN WITNESS WHEREOF, the undersigned has executed this certificate as of the date first above written.

	
             
 
	
            __________________________
 
	
            Name:_____________________
 
	
            Title:______________________
 

 

 

 

H–1

 

 

 

 

Schedule 1

 

[Calculations to be Attached]

 

 

 

 

H–2

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