Document:

Exhibit 10.6

    
      
        
          

        

      

      
         

        
          

        

      Exhibit
        10.6

      

      Transfer
        Agreement

       

      
        

      

       

       

    

    TRANSFER
      AGREEMENT

     

    This
      transfer agreement is made as of this 13th
      day of
      October, 2006 by and between Makeup
      Incorporated, a
      Nevada
      corporation with a principal place of business at 3388 Via Lido, 4th
      Floor,
      Newport Beach, California, 92663 (the “Buyer”),
      and
Manhattan
      Assets Corp.,
      a
      Nevada corporation with a principal place of business at 132 Via Havre, Newport
      Beach, California, 92663 (the “Seller”).

     

    Factual
      Background

     

    The
      parties acknowledge that the agreement set forth below is premised upon the
      following mutual understanding:

     

    
      	
              A.

            	
              The
                Seller is the owner of the Internet domain name www.makeup.com
                (the “Domain
                Name”)
                which it uses in its E-commerce advertising and retail business (the
                “E-commerce
                Business”).

            

    

     

    
      	
              B.

            	
              The
                Buyer desires to purchase the Domain Name and intangible assets related
                to
                the operation of the E-commerce Business encompassing the Domain
                Name as
                listed in Schedule “A” of the Seller in accordance with the terms and
                conditions set forth herein.

            

    

     

    Terms
      of Agreement

     

    In
      consideration of the mutual promises and obligations set forth below, the
      parties agree that:

     

    
      	
              1.

            	
              Currency.
                All references to dollars are to United States dollars unless otherwise
                indicated.

            

    

    

    
      	
              2.

            	
              Assets
                to be Transferred by the Seller.
                In
                exchange for the purchase price, the Seller will transfer to the
                Buyer all
                of the following assets (collectively the “Assets”):

            

    

     

    
      	 	
              a.

            	
              all
                right, title and interest of the Seller in the Domain Name;
                

            

    

     

    
      	 	
              b.

            	
              all
                right, title and interest that the Seller has in the trade name of
                any
                Domain Name and all logos and other marks associated with those trade
                names (the “Trade
                Names”);
                and

            

    

     

    
      	 	
              c.

            	
              intangible
                assets related to the operation of the E-commerce Business encompassing
                the Domain Name as listed in Schedule A, including customer lists,
                advertising contracts, website source program codes, vendor lists,
                and
                goodwill.

            

    

    

    
      	
              3.

            	
              Purchase
                Price.
                Effective October 13, 2006, the Seller sells and the Buyer purchases
                the
                Assets for and at a price equal to the fair market value of the Assets
                at
                the date of this agreement, the best estimate of which is $333,333
                (the
                “Estimated
                Value”). 

            

    

    

    
      	
              4.

            	
              Trust.
                The Seller declares that, as to any property or asset or interest
                in any
                property or asset of the Seller intended to be transferred, sold,
                granted,
                conveyed, assigned and set over to the Buyer pursuant to this agreement
                and title to which may not have passed to the Buyer by virtue of
                this
                agreement or any transfer or conveyance which from time to time may
                be
                executed and delivered in pursuance of the covenants contained in
                this
                agreement, the Seller holds the same in trust for the Buyer to transfer,
                sell, grant, convey, assign and set over the same as the Buyer from
                time
                to time may direct.

            

    

    

    
      	
              5.

            	
              Further
                Assurances. The
                Seller from time to time and at all times hereafter upon every reasonable
                request of the Buyer, and without further consideration, will do
                and
                perform or cause to be done or performed all such further acts and
                things,
                and execute or cause to be executed all such further deeds, documents,
                writings or other instruments and give all such further assurances
                as may
                be required by the Buyer to carry out effectively the intent and
                meaning
                of this agreement.

            

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      
        	
                Transfer
                  Agreement

              	
                2/5     

              

      

       

    

    
      	
              6.

            	
              Power
                of Attorney. The
                Seller irrevocably appoints the Buyer to be its attorney, with full
                power
                of substitution, and to do on the Seller’s behalf anything that the Seller
                lawfully can do by an attorney to:

            

    

    

    
      	 	
              a.

            	
              demand
                and receive any of the Assets transferred pursuant to this
                agreement;

            

    

    

    
      	 	
              b.

            	
              give
                receipts and releases for and in respect of the Assets and any part
                of
                them;

            

    

    

    
      	 	
              c.

            	
              institute
                and prosecute from time to time in the Seller’s name or otherwise, at the
                expense of the Buyer and for the benefit of the Buyer, any and all
                proceedings at law, in equity or otherwise, which the Buyer may deem
                proper for the collection or reduction to possession of any of the
                Assets
                transferred pursuant to this agreement or for the collection and
                enforcement of any claim or right of any kind transferred, sold,
                granted,
                conveyed, assigned and set over, or intended so to be pursuant to
                this
                agreement or any document delivered pursuant to the agreement;
                and

            

    

    

    
      	 	
              d.

            	
              do
                all acts and things in relation to the Assets transferred pursuant
                to this
                agreement that the Buyer deems desirable and do and sign all such
                further
                acts, deeds, documents, writings or other instruments that reasonably
                may
                be necessary or desirable for the purpose of vesting the Assets in
                the
                Buyer.

            

    

    

    Such
      power of attorney is acknowledged by the Seller to be coupled with an interest,
      will not be revoked by the dissolution, winding up, surrender of charter,
      bankruptcy or insolvency of the Seller, and may be exercised in the name of
      and
      on behalf of the Buyer.

    

    
      	
              7.

            	
              Payment
                of Purchase Price. In
                consideration of the sale of the Assets to it by the Seller, the
                Buyer
                will deliver a promissory note in the principal amount of $333,333
                payable
                on demand and bearing interest at 8% per annum to be accrued daily,
                calculated monthly and payable in arrears.

            

    

    

    
      	
              8.

            	
              Fair
                Market Value.
                The Seller and the Buyer covenant and agree
                that:

            

    

    

    
      	 	
              (a)

            	
              the
                purchase price of the Assets will be the fair market value of the
                Assets
                at the date of this agreement; and

            

    

    

    
      	 	
              (b)

            	
              the
                Estimated Value is the best estimate of the fair market value of
                the
                Assets presently available.

            

    

    

    
      	
              9.

            	
              Representations
                and Warranties of the Seller.
                As a material inducement to the Buyer to purchase the Assets as
                contemplated by this agreement, the Seller represents and warrants
                to the
                Buyer that:

            

    

     

    
      	 	
              a.

            	
              The
                Seller has good and marketable title to the
                Assets.

            

    

     

    
      	 	
              b.

            	
              The
                Seller has (i) properly registered the Domain Name without committing
                fraud or misrepresentation, (ii) not received any claim from a third
                party
                that the use of the Domain Name violates the rights of the third
                party,
                and (iii) not used the Domain Name for any illegal
                purpose.

            

    

     

    
      	 	
              c.

            	
              The
                use of the Domain Name does not infringe the rights of any third
                party in
                any jurisdiction. 

            

    

     

    
      	 	
              d.

            	
              No
                legal actions, suits, or other legal or administrative proceedings
                are
                pending or, to the best of the Seller’s knowledge, threatened against the
                Seller in regard to the Assets, and the Seller is not aware of any
                facts
                that might result in any action, suit or
                proceeding.

            

    

     

    
      	 	
              e.

            	
              No
                representation or warranty made by the Seller in this agreement or
                in any
                statement or certificate furnished or to be furnished to the Buyer
                under
                this agreement or in connection with it, contains or will contain
                any
                untrue statement of material fact or omits or will omit to state
                a
                material fact necessary to make the statements contained therein
                not
                misleading.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      
        
          	
                  Transfer
                    Agreement

                	
                  3/5     

                

        

         

      

    

    
      	 	
              f.

            	
              These
                representations and warranties of the Seller are made as of the execution
                of this agreement and will be deemed to be made again at the time
                of
                closing, and such representations and warranties will survive
                closing.

            

    

     

    
      	
              10.

            	
              Representations
                and Warranties of the Buyer.
                As
                a material inducement to the Seller to sell the Assets as contemplated
                by
                this agreement, the Buyer represents and warrants to the Seller
                that:

            

    

     

    
      	 	
              a.

            	
              No
                representation or warranty made by the Buyer in this agreement or
                in any
                statement or certificate furnished or to be furnished to the Seller
                under
                this agreement or in connection with it, contains or will contain
                any
                untrue statement of material fact or omits or will omit to state
                a
                material fact necessary to make the statements contained therein
                not
                misleading.

            

    

     

    
      	 	
              b.

            	
              These
                representations and warranties of the Buyer are made upon the execution
                of
                this agreement and will be deemed to be made again at the time of
                closing,
                and such representations and warranties will survive
                closing.

            

    

    

    
      	
              11.

            	
              General
                Provisions.

            

    

     

    
      	 	
              a.

            	
              Time.
                Time
                is of the essence of this agreement and any amendment to
                it.

            

    

     

    
      	 	
              b.

            	
              Assignment.
                This agreement is binding upon and inures to the benefit of the parties
                and their respective successors and permitted assigns. Neither party
                may
                assign this agreement without the written consent of the
                other.

            

    

     

    
      	 	
              c.

            	
              Notices.
                All
                notices and statements must be in writing and, together with any
                payments,
                be delivered personally or by overnight courier service, return receipt
                requested, delivery prepaid to the intended party at the address
                given at
                the beginning of this agreement. Any notice is deemed to be received
                upon
                delivery, if personally delivered, or one business day after depositing
                with an overnight courier service if so
                deposited.

            

    

     

    
      	 	
              d.

            	
              Entire
                Understanding.
                This agreement represents the entire understanding and agreement
                between
                the parties and supersedes all prior negotiations, representations
                and
                agreements made by and between them

            

    

     

    
      	 	
              e.

            	
              Enforceability.
                The
                invalidity or enforceability of any particular provision of this
                agreement
                does not affect the other provisions, and the agreement must be construed
                in all respects as if the invalid or unenforceable provisions were
                omitted.

            

    

     

    
      	 	
              f.

            	
              Jurisdiction.
                This agreement is governed by the laws of British Columbia, and any
                litigation arising out of this agreement must be conducted in the
                courts
                of British Columbia.

            

    

     

    
      	 	
              g.

            	
              Counterparts.
                This agreement may be executed in two or more counterparts and delivered
                to the parties by fax. The counterparts together are deemed to be
                one
                original agreement.

            

    

     

     

    [This
      space intentionally left blank]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      
        	
                Transfer
                  Agreement

              	
                4/5     

              

      

       

    

    *   *   *  *   *   *   *  *  *  *  *  *

     

    Execution
      by the Parties

     

    The
      duly
      authorized signatures of the parties below are evidence of the parties’
agreement to buy and sell the domain name www.makeup.com
      as of
      the date set out on page 1.

     

     

    Makeup
      Incorporated, a
      Nevada
      corporation

     

    
      	
              Per:

            	 
	
              /s/
                Authorized Signatory

            	 
	
              Authorized
                Signatory

            	 

    

     

     

    Manhattan
      Assets Corp., a
      Nevada
      corporation

     

    
      	
              Per:

            	 
	
              /s/
                Authorized Signatory

            	 
	
               Authorized
                Signatory

            	 

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      
        	
                Transfer
                  Agreement

              	
                5/5     

              

      

       

    

    SCHEDULE
      “A”

    

    Schedule
      “A” to that certain Transfer Agreement

    between
      Makeup Incorporated and Manhattan Assets Corp.

    made
      as
      of the 13th
      day of
      October, 2006.

    

    (number
      of pages including this one: 1)

     

    
      
        

      

    

    

    
      	
              Domain
                Name

            	 	
              Extension

            	 	
              Renewal
                Date

            	 	
              Location

            
	
              Makeup

            	 	
              .com

            	 	
              February
                13, 2010

            	 	
              eNom
                Central

            

    

    

    Trade
      name of any Domain Name and all logos and other marks associated with those
      trade names

    

    Customer
      lists

    

    Advertising
      Contracts

    

    Website
      Source Programming Codes

    

    Vendor
      lists

    

    GoodwillUnassociated Document

    

    
      
        

      

     

    

    ACE
      SECURITIES CORP.

    Depositor

     

    COUNTRYWIDE
      HOME LOANS SERVICING LP

    Servicer

    

    WELLS
      FARGO BANK, N.A.

    Master
      Servicer and Securities Administrator

     

    

    HSBC
      BANK
      USA, NATIONAL ASSOCIATION

    Trustee

     

    

    POOLING
      AND SERVICING AGREEMENT

    Dated
      as
      of September 1, 2006

    

     

    

     

    ACE
      Securities Corp. Home Equity Loan Trust, Series 2006-NC2

    Asset
      Backed Pass-Through Certificates

     

     

    
      
        

      

    

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    TABLE
      OF
      CONTENTS

    
      

        

          
            	
                    ARTICLE
                      I

                  	
                    DEFINITIONS

                  	
                    10

                  
	
                    SECTION
                      1.01.

                  	
                    Defined
                      Terms.

                  	
                    10

                  
	
                    SECTION
                      1.02.

                  	
                    Allocation
                      of Certain Interest Shortfalls.

                  	
                    90

                  
	
                    ARTICLE
                      II

                  	
                    CONVEYANCE
                      OF MORTGAGE LOANS; ORIGINAL ISSUANCE OF CERTIFICATES

                  	
                    92

                  
	
                    SECTION
                      2.01.

                  	
                    Conveyance
                      of the Mortgage Loans.

                  	
                    92

                  
	
                    SECTION
                      2.02.

                  	
                    Acceptance
                      of REMIC I by Trustee.

                  	
                    93

                  
	
                    SECTION
                      2.03.

                  	
                    Repurchase
                      or Substitution of Mortgage Loans.

                  	
                    93

                  
	
                    SECTION
                      2.04.

                  	
                    Representations
                      and Warranties of the Master Servicer.

                  	
                    96

                  
	
                    SECTION
                      2.05.

                  	
                    Representations,
                      Warranties and Covenants of the Servicer.

                  	
                    98

                  
	
                    SECTION
                      2.06.

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

                  	
                    100

                  
	
                    SECTION
                      2.07.

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

                  	
                    100

                  
	
                    SECTION
                      2.08.

                  	
                    Issuance
                      of the Residual Certificates.

                  	
                    101

                  
	
                    SECTION
                      2.09.

                  	
                    Establishment
                      of the Trust.

                  	
                    101

                  
	
                    SECTION
                      2.10.

                  	
                    Purpose
                      and Powers of the Trust.

                  	
                    101

                  
	
                    SECTION
                      2.11.

                  	
                    Representations
                      and Warranties of the Trustee.

                  	
                    102

                  
	
                    ARTICLE
                      III

                  	
                    ADMINISTRATION
                      AND SERVICING OF THE MORTGAGE LOANS; ACCOUNTS

                  	
                    103

                  
	
                    SECTION
                      3.01.

                  	
                    The
                      Servicer to Act as Servicer.

                  	
                    103

                  
	
                    SECTION
                      3.02.

                  	
                    Sub-Servicing
                      Agreements Between the Servicer and Sub-Servicers.

                  	
                    106

                  
	
                    SECTION
                      3.03.

                  	
                    Successor
                      Sub-Servicers.

                  	
                    107

                  
	
                    SECTION
                      3.04.

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

                  	
                    107

                  
	
                    SECTION
                      3.05.

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

                  	
                    108

                  
	
                    SECTION
                      3.06.

                  	
                    Collection
                      of Certain Mortgage Loan Payments.

                  	
                    108

                  
	
                    SECTION
                      3.07.

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

                  	
                    109

                  
	
                    SECTION
                      3.08.

                  	
                    Collection
                      Account and Distribution Account.

                  	
                    110

                  
	
                    SECTION
                      3.09.

                  	
                    Withdrawals
                      from the Collection Account and Distribution Account.

                  	
                    112

                  
	
                    SECTION
                      3.10.

                  	
                    Investment
                      of Funds in the Investment Accounts.

                  	
                    115

                  
	
                    SECTION
                      3.11.

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

                  	
                    116

                  
	
                    SECTION
                      3.12.

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

                  	
                    119

                  
	
                    SECTION
                      3.13.

                  	
                    Realization
                      Upon Defaulted Mortgage Loans.

                  	
                    120

                  
	
                    SECTION
                      3.14.

                  	
                    Trustee
                      to Cooperate; Release of Mortgage Files.

                  	
                    122

                  
	
                    SECTION
                      3.15.

                  	
                    Servicing
                      Compensation.

                  	
                    123

                  
	
                    SECTION
                      3.16.

                  	
                    Collection
                      Account Statements.

                  	
                    123

                  
	
                    SECTION
                      3.17.

                  	
                    Annual
                      Statement as to Compliance.

                  	
                    124

                  

          

           

          
            
              
              

            

            
              i

              
                

              

            

            
              
              

            

          

           

          
            	
                    SECTION
                      3.18.

                  	
                    Assessments
                      of Compliance and Attestation Reports.

                  	
                    124

                  
	
                    SECTION
                      3.19.

                  	
                    Annual
                      Certification; Indemnification and Remedies; Additional
                      Information.

                  	
                    125

                  
	
                    SECTION
                      3.20.

                  	
                    Access
                      to Certain Documentation.

                  	
                    129

                  
	
                    SECTION
                      3.21.

                  	
                    Title,
                      Management and Disposition of REO Property.

                  	
                    130

                  
	
                    SECTION
                      3.22.

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

                  	
                    133

                  
	
                    SECTION
                      3.23.

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

                  	
                    133

                  
	
                    SECTION
                      3.24.

                  	
                    Reserve
                      Fund.

                  	
                    133

                  
	
                    SECTION
                      3.25.

                  	
                    Advance
                      Facility.

                  	
                    135

                  
	
                    SECTION
                      3.26.

                  	
                    Indemnification.

                  	
                    137

                  
	
                    SECTION
                      3.27.

                  	
                    Additional
                      Representations and Warranties.

                  	
                    137

                  
	
                    ARTICLE
                      IV

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

                  	
                    139

                  
	
                    SECTION
                      4.01.

                  	
                    Master
                      Servicer.

                  	
                    139

                  
	
                    SECTION
                      4.02.

                  	
                    REMIC-Related
                      Covenants.

                  	
                    140

                  
	
                    SECTION
                      4.03.

                  	
                    Monitoring
                      of Servicer.

                  	
                    140

                  
	
                    SECTION
                      4.04.

                  	
                    Fidelity
                      Bond.

                  	
                    141

                  
	
                    SECTION
                      4.05.

                  	
                    Power
                      to Act; Procedures.

                  	
                    141

                  
	
                    SECTION
                      4.06.

                  	
                    Due-on-Sale
                      Clauses; Assumption Agreements.

                  	
                    142

                  
	
                    SECTION
                      4.07.

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

                  	
                    142

                  
	
                    SECTION
                      4.08.

                  	
                    Standard
                      Hazard Insurance and Flood Insurance Policies.

                  	
                    143

                  
	
                    SECTION
                      4.09.

                  	
                    Presentment
                      of Claims and Collection of Proceeds.

                  	
                    143

                  
	
                    SECTION
                      4.10.

                  	
                    Maintenance
                      of Primary Mortgage Insurance Policies.

                  	
                    143

                  
	
                    SECTION
                      4.11.

                  	
                    Trustee
                      to Retain Possession of Certain Insurance Policies and
                      Documents.

                  	
                    144

                  
	
                    SECTION
                      4.12.

                  	
                    Realization
                      Upon Defaulted Mortgage Loans.

                  	
                    144

                  
	
                    SECTION
                      4.13.

                  	
                    Compensation
                      for the Master Servicer.

                  	
                    144

                  
	
                    SECTION
                      4.14.

                  	
                    REO
                      Property.

                  	
                    145

                  
	
                    SECTION
                      4.15.

                  	
                    Master
                      Servicer Annual Statement of Compliance.

                  	
                    145

                  
	
                    SECTION
                      4.16.

                  	
                    Master
                      Servicer Assessments of Compliance.

                  	
                    146

                  
	
                    SECTION
                      4.17.

                  	
                    Master
                      Servicer Attestation Reports.

                  	
                    147

                  
	
                    SECTION
                      4.18.

                  	
                    Annual
                      Certification.

                  	
                    148

                  
	
                    SECTION
                      4.19.

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

                  	
                    149

                  
	
                    SECTION
                      4.20.

                  	
                    Prepayment
                      Penalty Verification.

                  	
                    149

                  
	
                    ARTICLE
                      V

                  	
                    PAYMENTS
                      TO CERTIFICATEHOLDERS

                  	
                    151

                  
	
                    SECTION
                      5.01.

                  	
                    Distributions.

                  	
                    151

                  
	
                    SECTION
                      5.02.

                  	
                    Statements
                      to Certificateholders.

                  	
                    165

                  
	
                    SECTION
                      5.03.

                  	
                    Servicer
                      Reports; P&I Advances.

                  	
                    169

                  
	
                    SECTION
                      5.04.

                  	
                    Allocation
                      of Realized Losses.

                  	
                    171

                  
	
                    SECTION
                      5.05.

                  	
                    Compliance
                      with Withholding Requirements.

                  	
                    174

                  

          

           

          
            
              
              

            

            
              ii

              
                

              

            

            
              
              

            

          

           

          
            	
                    SECTION
                      5.06.

                  	
                    Reports
                      Filed with Securities and Exchange Commission.

                  	
                    174

                  
	
                    SECTION
                      5.07.

                  	
                    Supplemental
                      Interest Trust.

                  	
                    179

                  
	
                    SECTION
                      5.08.

                  	
                    Tax
                      Treatment of Swap Payments and Swap Termination Payments.

                  	
                    181

                  
	
                    ARTICLE
                      VI

                  	
                    THE
                      CERTIFICATES

                  	
                    182

                  
	
                    SECTION
                      6.01.

                  	
                    The
                      Certificates.

                  	
                    182

                  
	
                    SECTION
                      6.02.

                  	
                    Registration
                      of Transfer and Exchange of Certificates.

                  	
                    184

                  
	
                    SECTION
                      6.03.

                  	
                    Mutilated,
                      Destroyed, Lost or Stolen Certificates.

                  	
                    190

                  
	
                    SECTION
                      6.04.

                  	
                    Persons
                      Deemed Owners.

                  	
                    190

                  
	
                    SECTION
                      6.05.

                  	
                    Certain
                      Available Information.

                  	
                    190

                  
	
                    ARTICLE
                      VII

                  	
                    THE
                      DEPOSITOR, THE SERVICER AND THE MASTER SERVICER

                  	
                    192

                  
	
                    SECTION
                      7.01.

                  	
                    Liability
                      of the Depositor, the Servicer and the Master Servicer.

                  	
                    192

                  
	
                    SECTION
                      7.02.

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

                  	
                    192

                  
	
                    SECTION
                      7.03.

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

                  	
                    192

                  
	
                    SECTION
                      7.04.

                  	
                    Limitation
                      on Resignation of the Servicer.

                  	
                    193

                  
	
                    SECTION
                      7.05.

                  	
                    Limitation
                      on Resignation of the Master Servicer.

                  	
                    195

                  
	
                    SECTION
                      7.06.

                  	
                    Assignment
                      of Master Servicing.

                  	
                    195

                  
	
                    SECTION
                      7.07.

                  	
                    Rights
                      of the Depositor in Respect of the Servicer and the Master
                      Servicer.

                  	
                    196

                  
	
                    SECTION
                      7.08.

                  	
                    Duties
                      of the Credit Risk Manager.

                  	
                    197

                  
	
                    SECTION
                      7.09.

                  	
                    Limitation
                      Upon Liability of the Credit Risk Manager.

                  	
                    197

                  
	
                    SECTION
                      7.10.

                  	
                    Removal
                      of the Credit Risk Manager.

                  	
                    197

                  
	
                    ARTICLE
                      VIII

                  	
                    DEFAULT

                  	
                    198

                  
	
                    SECTION
                      8.01.

                  	
                    Servicer
                      Events of Default.

                  	
                    198

                  
	
                    SECTION
                      8.02.

                  	
                    Master
                      Servicer to Act; Appointment of Successor.

                  	
                    203

                  
	
                    SECTION
                      8.03.

                  	
                    Notification
                      to Certificateholders.

                  	
                    204

                  
	
                    SECTION
                      8.04.

                  	
                    Waiver
                      of Servicer Events of Default.

                  	
                    204

                  
	
                    ARTICLE
                      IX

                  	
                    CONCERNING
                      THE TRUSTEE AND THE SECURITIES ADMINISTRATOR

                  	
                    206

                  
	
                    SECTION
                      9.01.

                  	
                    Duties
                      of Trustee and Securities Administrator.

                  	
                    206

                  
	
                    SECTION
                      9.02.

                  	
                    Certain
                      Matters Affecting Trustee and Securities Administrator.

                  	
                    207

                  
	
                    SECTION
                      9.03.

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

                  	
                    209

                  
	
                    SECTION
                      9.04.

                  	
                    Trustee
                      and Securities Administrator May Own Certificates.

                  	
                    210

                  
	
                    SECTION
                      9.05.

                  	
                    Fees
                      and Expenses of Trustee, Custodian and Securities
                      Administrator.

                  	
                    210

                  
	
                    SECTION
                      9.06.

                  	
                    Eligibility
                      Requirements for Trustee and Securities Administrator.

                  	
                    211

                  
	
                    SECTION
                      9.07.

                  	
                    Resignation
                      and Removal of Trustee and Securities Administrator.

                  	
                    211

                  
	
                    SECTION
                      9.08.

                  	
                    Successor
                      Trustee or Securities Administrator.

                  	
                    213

                  
	
                    SECTION
                      9.09.

                  	
                    Merger
                      or Consolidation of Trustee or Securities Administrator.

                  	
                    213

                  
	
                    SECTION
                      9.10.

                  	
                    Appointment
                      of Co-Trustee or Separate Trustee.

                  	
                    214

                  

          

           

          
            
              
              

            

            
              iii

              
                

              

            

            
              
              

            

          

           

          
            	
                    SECTION
                      9.11.

                  	
                    Appointment
                      of Office or Agency.

                  	
                    214

                  
	
                    SECTION
                      9.12.

                  	
                    Representations
                      and Warranties.

                  	
                    215

                  
	
                    ARTICLE
                      X

                  	
                    TERMINATION

                  	
                    216

                  
	
                    SECTION
                      10.01.

                  	
                    Termination
                      Upon Repurchase or Liquidation of All Mortgage Loans.

                  	
                    216

                  
	
                    SECTION
                      10.02.

                  	
                    Additional
                      Termination Requirements.

                  	
                    218

                  
	
                    ARTICLE
                      XI

                  	
                    REMIC
                      PROVISIONS

                  	
                    219

                  
	
                    SECTION
                      11.01.

                  	
                    REMIC
                      Administration.

                  	
                    219

                  
	
                    SECTION
                      11.02.

                  	
                    Prohibited
                      Transactions and Activities.

                  	
                    221

                  
	
                    SECTION
                      11.03.

                  	
                    Indemnification.

                  	
                    222

                  
	
                    ARTICLE
                      XII

                  	
                    MISCELLANEOUS
                      PROVISIONS

                  	
                    223

                  
	
                    SECTION
                      12.01.

                  	
                    Amendment.

                  	
                    223

                  
	
                    SECTION
                      12.02.

                  	
                    Recordation
                      of Agreement; Counterparts.

                  	
                    224

                  
	
                    SECTION
                      12.03.

                  	
                    Limitation
                      on Rights of Certificateholders.

                  	
                    224

                  
	
                    SECTION
                      12.04.

                  	
                    Governing
                      Law.

                  	
                    225

                  
	
                    SECTION
                      12.05.

                  	
                    Notices.

                  	
                    225

                  
	
                    SECTION
                      12.06.

                  	
                    Severability
                      of Provisions.

                  	
                    226

                  
	
                    SECTION
                      12.07.

                  	
                    Notice
                      to Rating Agencies.

                  	
                    226

                  
	
                    SECTION
                      12.08.

                  	
                    Article
                      and Section References.

                  	
                    227

                  
	
                    SECTION
                      12.09.

                  	
                    Grant
                      of Security Interest.

                  	
                    227

                  
	
                    SECTION
                      12.10.

                  	
                    Survival
                      of Indemnification.

                  	
                    228

                  
	
                    SECTION
                      12.11.

                  	
                    Intention
                      of the Parties and Interpretation.

                  	
                    228

                  
	
                    SECTION
                      12.12.

                  	
                    Indemnification.

                  	
                    229

                  

          

        

      

    

     

    
 

    
      
        
        

      

      
        iv

        
          

        

      

      
        
        

      

    

    

    

    Exhibits

     

    
      	
              Exhibit
                A-1

            	
              Form
                of Class A Certificate

            
	
              Exhibit
                A-2

            	
              Form
                of Class M-[1][2][3][4][5][6][7][8][9] Certificate

            
	
              Exhibit
                A-3

            	
              Form
                of Class M-[10][11] Certificate

            
	
              Exhibit
                A-4

            	
              Form
                of Class CE 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 M-10 Certificates,
                Class
                M-11 Certificates, Class P Certificates, Class CE 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 M-10 Certificates,
                Class
                M-11 Certificates, Class P Certificates, Class CE 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

            	
              Swap
                Agreement

            
	
              Exhibit
                J

            	
              Cap
                Contracts

            
	 	 
	
              Schedule
                1

            	
              Mortgage
                Loan Schedule

            
	
              Schedule
                2

            	
              Prepayment
                Charge Schedule

            
	
              Schedule
                3

            	
              Reserved

            
	
              Schedule
                4

            	
              Standard
                File Layout - Delinquency Reporting and Realized Losses and
                Gains

            
	
              Schedule
                5

            	
              Standard
                File Layout - Master Servicing

            
	
              Schedule
                6

            	
              Data
                Requirements of Servicing Advances Incurred Prior to Cut-off
                Date

            

    

    

     

    
      
        
        

      

      
        v

        
          

        

      

      
        
        

      

    

    

    This
      Pooling and Servicing Agreement, is dated and effective as of September 1,
      2006,
      among ACE SECURITIES CORP., as Depositor, COUNTRYWIDE HOME LOANS SERVICING
      LP,
      as Servicer, WELLS FARGO BANK, N.A., 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 and, for the avoidance
      of
      doubt, the Supplemental Interest Trust, the Cap Contracts and the Swap
      Agreement) 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

                	 	
                  Variable(2)

                	 	 	
                  $47,320,741.43

                	 	
                  July
                    25, 2036

                	 
	
                  I-1-A

                	 	
                  Variable(2)

                	 	 	
                  $ 6,370,662.95

                	 	
                  July
                    25, 2036

                	 
	
                  I-1-B

                	 	
                  Variable(2)

                	 	 	
                  $ 6,370,662.95

                	 	
                  July
                    25, 2036

                	 
	
                  I-2-A

                	 	
                  Variable(2)

                	 	 	
                  $ 6,792,855.07

                	 	
                  July
                    25, 2036

                	 
	
                  I-2-B

                	 	
                  Variable(2)

                	 	 	
                  $ 6,792,855.07

                	 	
                  July
                    25, 2036

                	 
	
                  I-3-A

                	 	
                  Variable(2)

                	 	 	
                  $ 7,004,658.57

                	 	
                  July
                    25, 2036

                	 
	
                  I-3-B

                	 	
                  Variable(2)

                	 	 	
                  $ 7,004,658.57

                	 	
                  July
                    25, 2036

                	 
	
                  I-4-A

                	 	
                  Variable(2)

                	 	 	
                  $ 6,713,964.35

                	 	
                  July
                    25, 2036

                	 
	
                  I-4-B

                	 	
                  Variable(2)

                	 	 	
                  $ 6,713,964.35

                	 	
                  July
                    25, 2036

                	 
	
                  I-5-A

                	 	
                  Variable(2)

                	 	 	
                  $ 6,435,369.47

                	 	
                  July
                    25, 2036

                	 
	
                  I-5-B

                	 	
                  Variable(2)

                	 	 	
                  $ 6,435,369.47

                	 	
                  July
                    25, 2036

                	 
	
                  I-6-A

                	 	
                  Variable(2)

                	 	 	
                  $ 6,168,368.22

                	 	
                  July
                    25, 2036

                	 
	
                  I-6-B

                	 	
                  Variable(2)

                	 	 	
                  $ 6,168,368.22

                	 	
                  July
                    25, 2036

                	 
	
                  I-7-A

                	 	
                  Variable(2)

                	 	 	
                  $ 5,912,477.47

                	 	
                  July
                    25, 2036

                	 
	
                  I-7-B

                	 	
                  Variable(2)

                	 	 	
                  $ 5,912,477.47

                	 	
                  July
                    25, 2036

                	 
	
                  I-8-A

                	 	
                  Variable(2)

                	 	 	
                  $ 5,667,233.67

                	 	
                  July
                    25, 2036

                	 
	
                  I-8-B

                	 	
                  Variable(2)

                	 	 	
                  $ 5,667,233.67

                	 	
                  July
                    25, 2036

                	 
	
                  I-9-A

                	 	
                  Variable(2)

                	 	 	
                  $ 5,432,192.35

                	 	
                  July
                    25, 2036

                	 
	
                  I-9-B

                	 	
                  Variable(2)

                	 	 	
                  $ 5,432,192.35

                	 	
                  July
                    25, 2036

                	 
	
                  I-10-A

                	 	
                  Variable(2)

                	 	 	
                  $ 5,206,928.17

                	 	
                  July
                    25, 2036

                	 

        

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

         

        
          	
                  Designation

                	 	
                  REMIC
                    I

                  Remittance
                    Rate

                	 	
                  Initial

                  Uncertificated
                    Balance

                	 	
                  Latest
                    Possible

                  Maturity
                    Date(1)

                	 

        

        
          	
                  I-10-B

                	 	
                  Variable(2)

                	 	 	
                  $ 5,206,928.17

                	 	
                  July
                    25, 2036

                	 
	
                  I-11-A

                	 	
                  Variable(2)

                	 	 	
                  $ 4,991,033.23

                	 	
                  July
                    25, 2036

                	 
	
                  I-11-B

                	 	
                  Variable(2)

                	 	 	
                  $ 4,991,033.23

                	 	
                  July
                    25, 2036

                	 
	
                  I-12-A

                	 	
                  Variable(2)

                	 	 	
                  $ 4,795,228.55

                	 	
                  July
                    25, 2036

                	 
	
                  I-12-B

                	 	
                  Variable(2)

                	 	 	
                  $ 4,795,228.55

                	 	
                  July
                    25, 2036

                	 
	
                  I-13-A

                	 	
                  Variable(2)

                	 	 	
                  $ 4,598,298.76

                	 	
                  July
                    25, 2036

                	 
	
                  I-13-B

                	 	
                  Variable(2)

                	 	 	
                  $ 4,598,298.76

                	 	
                  July
                    25, 2036

                	 
	
                  I-14-A

                	 	
                  Variable(2)

                	 	 	
                  $ 6,361,212.64

                	 	
                  July
                    25, 2036

                	 
	
                  I-14-B

                	 	
                  Variable(2)

                	 	 	
                  $ 6,361,212.64

                	 	
                  July
                    25, 2036

                	 
	
                  I-15-A

                	 	
                  Variable(2)

                	 	 	
                  $14,798,713.99

                	 	
                  July
                    25, 2036

                	 
	
                  I-15-B

                	 	
                  Variable(2)

                	 	 	
                  $14,798,713.99

                	 	
                  July
                    25, 2036

                	 
	
                  I-16-A

                	 	
                  Variable(2)

                	 	 	
                  $12,294,702.84

                	 	
                  July
                    25, 2036

                	 
	
                  I-16-B

                	 	
                  Variable(2)

                	 	 	
                  $12,294,702.84

                	 	
                  July
                    25, 2036

                	 
	
                  I-17-A

                	 	
                  Variable(2)

                	 	 	
                  $10,235,717.21

                	 	
                  July
                    25, 2036

                	 
	
                  I-17-B

                	 	
                  Variable(2)

                	 	 	
                  $10,235,717.21

                	 	
                  July
                    25, 2036

                	 
	
                  I-18-A

                	 	
                  Variable(2)

                	 	 	
                  $ 7,670,616.23

                	 	
                  July
                    25, 2036

                	 
	
                  I-18-B

                	 	
                  Variable(2)

                	 	 	
                  $ 7,670,616.23

                	 	
                  July
                    25, 2036

                	 
	
                  I-19-A

                	 	
                  Variable(2)

                	 	 	
                  $ 2,461,935.86

                	 	
                  July
                    25, 2036

                	 
	
                  I-19-B

                	 	
                  Variable(2)

                	 	 	
                  $ 2,461,935.86

                	 	
                  July
                    25, 2036

                	 
	
                  I-20-A

                	 	
                  Variable(2)

                	 	 	
                  $ 2,349,804.01

                	 	
                  July
                    25, 2036

                	 
	
                  I-20-B

                	 	
                  Variable(2)

                	 	 	
                  $ 2,349,804.01

                	 	
                  July
                    25, 2036

                	 
	
                  I-21-A

                	 	
                  Variable(2)

                	 	 	
                  $ 2,242,759.90

                	 	
                  July
                    25, 2036

                	 
	
                  I-21-B

                	 	
                  Variable(2)

                	 	 	
                  $ 2,242,759.90

                	 	
                  July
                    25, 2036

                	 
	
                  I-22-A

                	 	
                  Variable(2)

                	 	 	
                  $ 2,138,414.21

                	 	
                  July
                    25, 2036

                	 
	
                  I-22-B

                	 	
                  Variable(2)

                	 	 	
                  $ 2,138,414.21

                	 	
                  July
                    25, 2036

                	 
	
                  I-23-A

                	 	
                  Variable(2)

                	 	 	
                  $ 2,041,346.86

                	 	
                  July
                    25, 2036

                	 
	
                  I-23-B

                	 	
                  Variable(2)

                	 	 	
                  $ 2,041,346.86

                	 	
                  July
                    25, 2036

                	 
	
                  I-24-A

                	 	
                  Variable(2)

                	 	 	
                  $ 1,948,755.30

                	 	
                  July
                    25, 2036

                	 
	
                  I-24-B

                	 	
                  Variable(2)

                	 	 	
                  $ 1,948,755.30

                	 	
                  July
                    25, 2036

                	 
	
                  I-25-A

                	 	
                  Variable(2)

                	 	 	
                  $ 1,860,429.65

                	 	
                  July
                    25, 2036

                	 
	
                  I-25-B

                	 	
                  Variable(2)

                	 	 	
                  $ 1,860,429.65

                	 	
                  July
                    25, 2036

                	 
	
                  I-26-A

                	 	
                  Variable(2)

                	 	 	
                  $ 1,776,171.19

                	 	
                  July
                    25, 2036

                	 
	
                  I-26-B

                	 	
                  Variable(2)

                	 	 	
                  $ 1,776,171.19

                	 	
                  July
                    25, 2036

                	 
	
                  I-27-A

                	 	
                  Variable(2)

                	 	 	
                  $ 1,695,758.65

                	 	
                  July
                    25, 2036

                	 
	
                  I-27-B

                	 	
                  Variable(2)

                	 	 	
                  $ 1,695,758.65

                	 	
                  July
                    25, 2036

                	 
	
                  I-28-A

                	 	
                  Variable(2)

                	 	 	
                  $ 1,618,736.84

                	 	
                  July
                    25, 2036

                	 
	
                  I-28-B

                	 	
                  Variable(2)

                	 	 	
                  $ 1,618,736.84

                	 	
                  July
                    25, 2036

                	 
	
                  I-29-A

                	 	
                  Variable(2)

                	 	 	
                  $ 1,545,611.26

                	 	
                  July
                    25, 2036

                	 
	
                  I-29-B

                	 	
                  Variable(2)

                	 	 	
                  $ 1,545,611.26

                	 	
                  July
                    25, 2036

                	 
	
                  I-30-A

                	 	
                  Variable(2)

                	 	 	
                  $ 1,475,843.56

                	 	
                  July
                    25, 2036

                	 
	
                  I-30-B

                	 	
                  Variable(2)

                	 	 	
                  $ 1,475,843.56

                	 	
                  July
                    25, 2036

                	 
	
                  I-31-A

                	 	
                  Variable(2)

                	 	 	
                  $ 1,409,276.98

                	 	
                  July
                    25, 2036

                	 
	
                  I-31-B

                	 	
                  Variable(2)

                	 	 	
                  $ 1,409,276.98

                	 	
                  July
                    25, 2036

                	 
	
                  I-32-A

                	 	
                  Variable(2)

                	 	 	
                  $ 1,345,763.61

                	 	
                  July
                    25, 2036

                	 
	
                  I-32-B

                	 	
                  Variable(2)

                	 	 	
                  $ 1,345,763.61

                	 	
                  July
                    25, 2036

                	 
	
                  I-33-A

                	 	
                  Variable(2)

                	 	 	
                  $ 1,285,150.38

                	 	
                  July
                    25, 2036

                	 

        

         

        
          
            
            

          

          
            2

            
              

            

          

          
            
            

          

        

         

         

        
          	
                  Designation

                	 	
                  REMIC
                    I

                  Remittance
                    Rate

                	 	
                  Initial

                  Uncertificated
                    Balance

                	 	
                  Latest
                    Possible

                  Maturity
                    Date(1)

                	 

        

        
          	
                  I-33-B

                	 	
                  Variable(2)

                	 	 	
                  $ 1,285,150.38

                	 	
                  July
                    25, 2036

                	 
	
                  I-34-A

                	 	
                  Variable(2)

                	 	 	
                  $ 1,227,288.23

                	 	
                  July
                    25, 2036

                	 
	
                  I-34-B

                	 	
                  Variable(2)

                	 	 	
                  $ 1,227,288.23

                	 	
                  July
                    25, 2036

                	 
	
                  I-35-A

                	 	
                  Variable(2)

                	 	 	
                  $ 1,172,111.22

                	 	
                  July
                    25, 2036

                	 
	
                  I-35-B

                	 	
                  Variable(2)

                	 	 	
                  $ 1,172,111.22

                	 	
                  July
                    25, 2036

                	 
	
                  I-36-A

                	 	
                  Variable(2)

                	 	 	
                  $ 1,119,457.69

                	 	
                  July
                    25, 2036

                	 
	
                  I-36-B

                	 	
                  Variable(2)

                	 	 	
                  $ 1,119,457.69

                	 	
                  July
                    25, 2036

                	 
	
                  I-37-A

                	 	
                  Variable(2)

                	 	 	
                  $ 1,069,210.48

                	 	
                  July
                    25, 2036

                	 
	
                  I-37-B

                	 	
                  Variable(2)

                	 	 	
                  $ 1,069,210.48

                	 	
                  July
                    25, 2036

                	 
	
                  I-38-A

                	 	
                  Variable(2)

                	 	 	
                  $ 1,021,257.77

                	 	
                  July
                    25, 2036

                	 
	
                  I-38-B

                	 	
                  Variable(2)

                	 	 	
                  $ 1,021,257.77

                	 	
                  July
                    25, 2036

                	 
	
                  I-39-A

                	 	
                  Variable(2)

                	 	 	
                  $    975,490.31

                	 	
                  July
                    25, 2036

                	 
	
                  I-39-B

                	 	
                  Variable(2)

                	 	 	
                  $    975,490.31

                	 	
                  July
                    25, 2036

                	 
	
                  I-40-A

                	 	
                  Variable(2)

                	 	 	
                  $    932,664.40

                	 	
                  July
                    25, 2036

                	 
	
                  I-40-B

                	 	
                  Variable(2)

                	 	 	
                  $    932,664.40

                	 	
                  July
                    25, 2036

                	 
	
                  I-41-A

                	 	
                  Variable(2)

                	 	 	
                  $    891,718.65

                	 	
                  July
                    25, 2036

                	 
	
                  I-41-B

                	 	
                  Variable(2)

                	 	 	
                  $    891,718.65

                	 	
                  July
                    25, 2036

                	 
	
                  I-42-A

                	 	
                  Variable(2)

                	 	 	
                  $    852,570.48

                	 	
                  July
                    25, 2036

                	 
	
                  I-42-B

                	 	
                  Variable(2)

                	 	 	
                  $    852,570.48

                	 	
                  July
                    25, 2036

                	 
	
                  I-43-A

                	 	
                  Variable(2)

                	 	 	
                  $    815,140.99

                	 	
                  July
                    25, 2036

                	 
	
                  I-43-B

                	 	
                  Variable(2)

                	 	 	
                  $    815,140.99

                	 	
                  July
                    25, 2036

                	 
	
                  I-44-A

                	 	
                  Variable(2)

                	 	 	
                  $    779,354.74

                	 	
                  July
                    25, 2036

                	 
	
                  I-44-B

                	 	
                  Variable(2)

                	 	 	
                  $    779,354.74

                	 	
                  July
                    25, 2036

                	 
	
                  I-45-A

                	 	
                  Variable(2)

                	 	 	
                  $    745,139.56

                	 	
                  July
                    25, 2036

                	 
	
                  I-45-B

                	 	
                  Variable(2)

                	 	 	
                  $    745,139.56

                	 	
                  July
                    25, 2036

                	 
	
                  I-46-A

                	 	
                  Variable(2)

                	 	 	
                  $    712,426.50

                	 	
                  July
                    25, 2036

                	 
	
                  I-46-B

                	 	
                  Variable(2)

                	 	 	
                  $    712,426.50

                	 	
                  July
                    25, 2036

                	 
	
                  I-47-A

                	 	
                  Variable(2)

                	 	 	
                  $    681,149.61

                	 	
                  July
                    25, 2036

                	 
	
                  I-47-B

                	 	
                  Variable(2)

                	 	 	
                  $    681,149.61

                	 	
                  July
                    25, 2036

                	 
	
                  I-48-A

                	 	
                  Variable(2)

                	 	 	
                  $    651,245.83

                	 	
                  July
                    25, 2036

                	 
	
                  I-48-B

                	 	
                  Variable(2)

                	 	 	
                  $    651,245.83

                	 	
                  July
                    25, 2036

                	 
	
                  I-49-A

                	 	
                  Variable(2)

                	 	 	
                  $    622,654.88

                	 	
                  July
                    25, 2036

                	 
	
                  I-49-B

                	 	
                  Variable(2)

                	 	 	
                  $    622,654.88

                	 	
                  July
                    25, 2036

                	 
	
                  I-50-A

                	 	
                  Variable(2)

                	 	 	
                  $    595,319.14

                	 	
                  July
                    25, 2036

                	 
	
                  I-50-B

                	 	
                  Variable(2)

                	 	 	
                  $    595,319.14

                	 	
                  July
                    25, 2036

                	 
	
                  I-51-A

                	 	
                  Variable(2)

                	 	 	
                  $    569,183.48

                	 	
                  July
                    25, 2036

                	 
	
                  I-51-B

                	 	
                  Variable(2)

                	 	 	
                  $    569,183.48

                	 	
                  July
                    25, 2036

                	 
	
                  I-52-A

                	 	
                  Variable(2)

                	 	 	
                  $    544,195.23

                	 	
                  July
                    25, 2036

                	 
	
                  I-52-B

                	 	
                  Variable(2)

                	 	 	
                  $    544,195.23

                	 	
                  July
                    25, 2036

                	 
	
                  I-53-A

                	 	
                  Variable(2)

                	 	 	
                  $    520,304.01

                	 	
                  July
                    25, 2036

                	 
	
                  I-53-B

                	 	
                  Variable(2)

                	 	 	
                  $    520,304.01

                	 	
                  July
                    25, 2036

                	 
	
                  I-54-A

                	 	
                  Variable(2)

                	 	 	
                  $    497,461.67

                	 	
                  July
                    25, 2036

                	 
	
                  I-54-B

                	 	
                  Variable(2)

                	 	 	
                  $    497,461.67

                	 	
                  July
                    25, 2036

                	 
	
                  I-55-A

                	 	
                  Variable(2)

                	 	 	
                  $    475,622.14

                	 	
                  July
                    25, 2036

                	 
	
                  I-55-B

                	 	
                  Variable(2)

                	 	 	
                  $    475,622.14

                	 	
                  July
                    25, 2036

                	 
	
                  I-56-A

                	 	
                  Variable(2)

                	 	 	
                  $    454,741.41

                	 	
                  July
                    25, 2036

                	 

        

         

         

        
          
            
            

          

          
            3

            
              

            

          

          
            
            

          

        

         

        
          	
                  Designation

                	 	
                  REMIC
                    I

                  Remittance
                    Rate

                	 	
                  Initial

                  Uncertificated
                    Balance

                	 	
                  Latest
                    Possible

                  Maturity
                    Date(1)

                	 

        

        
          	
                  I-56-B

                	 	
                  Variable(2)

                	 	 	
                  $    454,741.41

                	 	
                  July
                    25, 2036

                	 
	
                  I-57-A

                	 	
                  Variable(2)

                	 	 	
                  $ 9,903,378.79

                	 	
                  July
                    25, 2036

                	 
	
                  I-57-B

                	 	
                  Variable(2)

                	 	 	
                  $ 9,903,378.79

                	 	
                  July
                    25, 2036

                	 
	
                  II

                	 	
                  Variable(2)

                	 	 	
                  $54,250,273.58

                	 	
                  July
                    25, 2036

                	 
	
                  II-1-A

                	 	
                  Variable(2)

                	 	 	
                  $ 7,303,567.05

                	 	
                  July
                    25, 2036

                	 
	
                  II-1-B

                	 	
                  Variable(2)

                	 	 	
                  $ 7,303,567.05

                	 	
                  July
                    25, 2036

                	 
	
                  II-2-A

                	 	
                  Variable(2)

                	 	 	
                  $ 7,787,583.93

                	 	
                  July
                    25, 2036

                	 
	
                  II-2-B

                	 	
                  Variable(2)

                	 	 	
                  $ 7,787,583.93

                	 	
                  July
                    25, 2036

                	 
	
                  II-3-A

                	 	
                  Variable(2)

                	 	 	
                  $ 8,030,403.43

                	 	
                  July
                    25, 2036

                	 
	
                  II-3-B

                	 	
                  Variable(2)

                	 	 	
                  $ 8,030,403.43

                	 	
                  July
                    25, 2036

                	 
	
                  II-4-A

                	 	
                  Variable(2)

                	 	 	
                  $ 7,697,140.65

                	 	
                  July
                    25, 2036

                	 
	
                  II-4-B

                	 	
                  Variable(2)

                	 	 	
                  $ 7,697,140.65

                	 	
                  July
                    25, 2036

                	 
	
                  II-5-A

                	 	
                  Variable(2)

                	 	 	
                  $ 7,377,749.03

                	 	
                  July
                    25, 2036

                	 
	
                  II-5-B

                	 	
                  Variable(2)

                	 	 	
                  $ 7,377,749.03

                	 	
                  July
                    25, 2036

                	 
	
                  II-6-A

                	 	
                  Variable(2)

                	 	 	
                  $ 7,071,648.78

                	 	
                  July
                    25, 2036

                	 
	
                  II-6-B

                	 	
                  Variable(2)

                	 	 	
                  $ 7,071,648.78

                	 	
                  July
                    25, 2036

                	 
	
                  II-7-A

                	 	
                  Variable(2)

                	 	 	
                  $ 6,778,286.03

                	 	
                  July
                    25, 2036

                	 
	
                  II-7-B

                	 	
                  Variable(2)

                	 	 	
                  $ 6,778,286.03

                	 	
                  July
                    25, 2036

                	 
	
                  II-8-A

                	 	
                  Variable(2)

                	 	 	
                  $ 6,497,129.33

                	 	
                  July
                    25, 2036

                	 
	
                  II-8-B

                	 	
                  Variable(2)

                	 	 	
                  $ 6,497,129.33

                	 	
                  July
                    25, 2036

                	 
	
                  II-9-A

                	 	
                  Variable(2)

                	 	 	
                  $ 6,227,669.15

                	 	
                  July
                    25, 2036

                	 
	
                  II-9-B

                	 	
                  Variable(2)

                	 	 	
                  $ 6,227,669.15

                	 	
                  July
                    25, 2036

                	 
	
                  II-10-A

                	 	
                  Variable(2)

                	 	 	
                  $ 5,969,417.83

                	 	
                  July
                    25, 2036

                	 
	
                  II-10-B

                	 	
                  Variable(2)

                	 	 	
                  $ 5,969,417.83

                	 	
                  July
                    25, 2036

                	 
	
                  II-11-A

                	 	
                  Variable(2)

                	 	 	
                  $ 5,721,907.77

                	 	
                  July
                    25, 2036

                	 
	
                  II-11-B

                	 	
                  Variable(2)

                	 	 	
                  $ 5,721,907.77

                	 	
                  July
                    25, 2036

                	 
	
                  II-12-A

                	 	
                  Variable(2)

                	 	 	
                  $ 5,497,429.95

                	 	
                  July
                    25, 2036

                	 
	
                  II-12-B

                	 	
                  Variable(2)

                	 	 	
                  $ 5,497,429.95

                	 	
                  July
                    25, 2036

                	 
	
                  II-13-A

                	 	
                  Variable(2)

                	 	 	
                  $ 5,271,662.24

                	 	
                  July
                    25, 2036

                	 
	
                  II-13-B

                	 	
                  Variable(2)

                	 	 	
                  $ 5,271,662.24

                	 	
                  July
                    25, 2036

                	 
	
                  II-14-A

                	 	
                  Variable(2)

                	 	 	
                  $ 7,292,732.86

                	 	
                  July
                    25, 2036

                	 
	
                  II-14-B

                	 	
                  Variable(2)

                	 	 	
                  $ 7,292,732.86

                	 	
                  July
                    25, 2036

                	 
	
                  II-15-A

                	 	
                  Variable(2)

                	 	 	
                  $16,965,801.01

                	 	
                  July
                    25, 2036

                	 
	
                  II-15-B

                	 	
                  Variable(2)

                	 	 	
                  $16,965,801.01

                	 	
                  July
                    25, 2036

                	 
	
                  II-16-A

                	 	
                  Variable(2)

                	 	 	
                  $14,095,108.66

                	 	
                  July
                    25, 2036

                	 
	
                  II-16-B

                	 	
                  Variable(2)

                	 	 	
                  $14,095,108.66

                	 	
                  July
                    25, 2036

                	 
	
                  II-17-A

                	 	
                  Variable(2)

                	 	 	
                  $11,734,610.29

                	 	
                  July
                    25, 2036

                	 
	
                  II-17-B

                	 	
                  Variable(2)

                	 	 	
                  $11,734,610.29

                	 	
                  July
                    25, 2036

                	 
	
                  II-18-A

                	 	
                  Variable(2)

                	 	 	
                  $ 8,793,882.27

                	 	
                  July
                    25, 2036

                	 
	
                  II-18-B

                	 	
                  Variable(2)

                	 	 	
                  $ 8,793,882.27

                	 	
                  July
                    25, 2036

                	 
	
                  II-19-A

                	 	
                  Variable(2)

                	 	 	
                  $ 2,822,455.64

                	 	
                  July
                    25, 2036

                	 
	
                  II-19-B

                	 	
                  Variable(2)

                	 	 	
                  $ 2,822,455.64

                	 	
                  July
                    25, 2036

                	 
	
                  II-20-A

                	 	
                  Variable(2)

                	 	 	
                  $ 2,693,903.49

                	 	
                  July
                    25, 2036

                	 
	
                  II-20-B

                	 	
                  Variable(2)

                	 	 	
                  $ 2,693,903.49

                	 	
                  July
                    25, 2036

                	 
	
                  II-21-A

                	 	
                  Variable(2)

                	 	 	
                  $ 2,571,184.10

                	 	
                  July
                    25, 2036

                	 
	
                  II-21-B

                	 	
                  Variable(2)

                	 	 	
                  $ 2,571,184.10

                	 	
                  July
                    25, 2036

                	 

        

         

         

        
          
            
            

          

          
            4

            
              

            

          

          
            
            

          

        

         

        
          	
                  Designation

                	 	
                  REMIC
                    I

                  Remittance
                    Rate

                	 	
                  Initial

                  Uncertificated
                    Balance

                	 	
                  Latest
                    Possible

                  Maturity
                    Date(1)

                	 

        

        
          	
                  II-22-A

                	 	
                  Variable(2)

                	 	 	
                  $ 2,451,558.29

                	 	
                  July
                    25, 2036

                	 
	
                  II-22-B

                	 	
                  Variable(2)

                	 	 	
                  $ 2,451,558.29

                	 	
                  July
                    25, 2036

                	 
	
                  II-23-A

                	 	
                  Variable(2)

                	 	 	
                  $ 2,340,276.64

                	 	
                  July
                    25, 2036

                	 
	
                  II-23-B

                	 	
                  Variable(2)

                	 	 	
                  $ 2,340,276.64

                	 	
                  July
                    25, 2036

                	 
	
                  II-24-A

                	 	
                  Variable(2)

                	 	 	
                  $ 2,234,126.20

                	 	
                  July
                    25, 2036

                	 
	
                  II-24-B

                	 	
                  Variable(2)

                	 	 	
                  $ 2,234,126.20

                	 	
                  July
                    25, 2036

                	 
	
                  II-25-A

                	 	
                  Variable(2)

                	 	 	
                  $ 2,132,866.35

                	 	
                  July
                    25, 2036

                	 
	
                  II-25-B

                	 	
                  Variable(2)

                	 	 	
                  $ 2,132,866.35

                	 	
                  July
                    25, 2036

                	 
	
                  II-26-A

                	 	
                  Variable(2)

                	 	 	
                  $ 2,036,269.31

                	 	
                  July
                    25, 2036

                	 
	
                  II-26-B

                	 	
                  Variable(2)

                	 	 	
                  $ 2,036,269.31

                	 	
                  July
                    25, 2036

                	 
	
                  II-27-A

                	 	
                  Variable(2)

                	 	 	
                  $ 1,944,081.35

                	 	
                  July
                    25, 2036

                	 
	
                  II-27-B

                	 	
                  Variable(2)

                	 	 	
                  $ 1,944,081.35

                	 	
                  July
                    25, 2036

                	 
	
                  II-28-A

                	 	
                  Variable(2)

                	 	 	
                  $ 1,855,780.66

                	 	
                  July
                    25, 2036

                	 
	
                  II-28-B

                	 	
                  Variable(2)

                	 	 	
                  $ 1,855,780.66

                	 	
                  July
                    25, 2036

                	 
	
                  II-29-A

                	 	
                  Variable(2)

                	 	 	
                  $ 1,771,946.74

                	 	
                  July
                    25, 2036

                	 
	
                  II-29-B

                	 	
                  Variable(2)

                	 	 	
                  $ 1,771,946.74

                	 	
                  July
                    25, 2036

                	 
	
                  II-30-A

                	 	
                  Variable(2)

                	 	 	
                  $ 1,691,962.44

                	 	
                  July
                    25, 2036

                	 
	
                  II-30-B

                	 	
                  Variable(2)

                	 	 	
                  $ 1,691,962.44

                	 	
                  July
                    25, 2036

                	 
	
                  II-31-A

                	 	
                  Variable(2)

                	 	 	
                  $ 1,615,648.02

                	 	
                  July
                    25, 2036

                	 
	
                  II-31-B

                	 	
                  Variable(2)

                	 	 	
                  $ 1,615,648.02

                	 	
                  July
                    25, 2036

                	 
	
                  II-32-A

                	 	
                  Variable(2)

                	 	 	
                  $ 1,542,833.89

                	 	
                  July
                    25, 2036

                	 
	
                  II-32-B

                	 	
                  Variable(2)

                	 	 	
                  $ 1,542,833.89

                	 	
                  July
                    25, 2036

                	 
	
                  II-33-A

                	 	
                  Variable(2)

                	 	 	
                  $ 1,473,344.62

                	 	
                  July
                    25, 2036

                	 
	
                  II-33-B

                	 	
                  Variable(2)

                	 	 	
                  $ 1,473,344.62

                	 	
                  July
                    25, 2036

                	 
	
                  II-34-A

                	 	
                  Variable(2)

                	 	 	
                  $ 1,407,009.27

                	 	
                  July
                    25, 2036

                	 
	
                  II-34-B

                	 	
                  Variable(2)

                	 	 	
                  $ 1,407,009.27

                	 	
                  July
                    25, 2036

                	 
	
                  II-35-A

                	 	
                  Variable(2)

                	 	 	
                  $ 1,343,752.28

                	 	
                  July
                    25, 2036

                	 
	
                  II-35-B

                	 	
                  Variable(2)

                	 	 	
                  $ 1,343,752.28

                	 	
                  July
                    25, 2036

                	 
	
                  II-36-A

                	 	
                  Variable(2)

                	 	 	
                  $ 1,283,388.31

                	 	
                  July
                    25, 2036

                	 
	
                  II-36-B

                	 	
                  Variable(2)

                	 	 	
                  $ 1,283,388.31

                	 	
                  July
                    25, 2036

                	 
	
                  II-37-A

                	 	
                  Variable(2)

                	 	 	
                  $ 1,225,783.02

                	 	
                  July
                    25, 2036

                	 
	
                  II-37-B

                	 	
                  Variable(2)

                	 	 	
                  $ 1,225,783.02

                	 	
                  July
                    25, 2036

                	 
	
                  II-38-A

                	 	
                  Variable(2)

                	 	 	
                  $ 1,170,808.23

                	 	
                  July
                    25, 2036

                	 
	
                  II-38-B

                	 	
                  Variable(2)

                	 	 	
                  $ 1,170,808.23

                	 	
                  July
                    25, 2036

                	 
	
                  II-39-A

                	 	
                  Variable(2)

                	 	 	
                  $ 1,118,338.69

                	 	
                  July
                    25, 2036

                	 
	
                  II-39-B

                	 	
                  Variable(2)

                	 	 	
                  $ 1,118,338.69

                	 	
                  July
                    25, 2036

                	 
	
                  II-40-A

                	 	
                  Variable(2)

                	 	 	
                  $ 1,069,241.47

                	 	
                  July
                    25, 2036

                	 
	
                  II-40-B

                	 	
                  Variable(2)

                	 	 	
                  $ 1,069,241.47

                	 	
                  July
                    25, 2036

                	 
	
                  II-41-A

                	 	
                  Variable(2)

                	 	 	
                  $ 1,022,299.71

                	 	
                  July
                    25, 2036

                	 
	
                  II-41-B

                	 	
                  Variable(2)

                	 	 	
                  $ 1,022,299.71

                	 	
                  July
                    25, 2036

                	 
	
                  II-42-A

                	 	
                  Variable(2)

                	 	 	
                  $    977,418.79

                	 	
                  July
                    25, 2036

                	 
	
                  II-42-B

                	 	
                  Variable(2)

                	 	 	
                  $    977,418.79

                	 	
                  July
                    25, 2036

                	 
	
                  II-43-A

                	 	
                  Variable(2)

                	 	 	
                  $    934,508.22

                	 	
                  July
                    25, 2036

                	 
	
                  II-43-B

                	 	
                  Variable(2)

                	 	 	
                  $    934,508.22

                	 	
                  July
                    25, 2036

                	 
	
                  II-44-A

                	 	
                  Variable(2)

                	 	 	
                  $    893,481.51

                	 	
                  July
                    25, 2036

                	 
	
                  II-44-B

                	 	
                  Variable(2)

                	 	 	
                  $    893,481.51

                	 	
                  July
                    25, 2036

                	 

        

         

         

        
          
            
            

          

          
            5

            
              

            

          

          
            
            

          

        

         

        
          	
                  Designation

                	 	
                  REMIC
                    I

                  Remittance
                    Rate

                	 	
                  Initial

                  Uncertificated
                    Balance

                	 	
                  Latest
                    Possible

                  Maturity
                    Date(1)

                	 

        

        
          	
                  II-45-A

                	 	
                  Variable(2)

                	 	 	
                  $    854,255.95

                	 	
                  July
                    25, 2036

                	 
	
                  II-45-B

                	 	
                  Variable(2)

                	 	 	
                  $    854,255.95

                	 	
                  July
                    25, 2036

                	 
	
                  II-46-A

                	 	
                  Variable(2)

                	 	 	
                  $    816,752.47

                	 	
                  July
                    25, 2036

                	 
	
                  II-46-B

                	 	
                  Variable(2)

                	 	 	
                  $    816,752.47

                	 	
                  July
                    25, 2036

                	 
	
                  II-47-A

                	 	
                  Variable(2)

                	 	 	
                  $    780,895.47

                	 	
                  July
                    25, 2036

                	 
	
                  II-47-B

                	 	
                  Variable(2)

                	 	 	
                  $    780,895.47

                	 	
                  July
                    25, 2036

                	 
	
                  II-48-A

                	 	
                  Variable(2)

                	 	 	
                  $    746,612.66

                	 	
                  July
                    25, 2036

                	 
	
                  II-48-B

                	 	
                  Variable(2)

                	 	 	
                  $    746,612.66

                	 	
                  July
                    25, 2036

                	 
	
                  II-49-A

                	 	
                  Variable(2)

                	 	 	
                  $    713,834.92

                	 	
                  July
                    25, 2036

                	 
	
                  II-49-B

                	 	
                  Variable(2)

                	 	 	
                  $    713,834.92

                	 	
                  July
                    25, 2036

                	 
	
                  II-50-A

                	 	
                  Variable(2)

                	 	 	
                  $    682,496.19

                	 	
                  July
                    25, 2036

                	 
	
                  II-50-B

                	 	
                  Variable(2)

                	 	 	
                  $    682,496.19

                	 	
                  July
                    25, 2036

                	 
	
                  II-51-A

                	 	
                  Variable(2)

                	 	 	
                  $    652,533.30

                	 	
                  July
                    25, 2036

                	 
	
                  II-51-B

                	 	
                  Variable(2)

                	 	 	
                  $    652,533.30

                	 	
                  July
                    25, 2036

                	 
	
                  II-52-A

                	 	
                  Variable(2)

                	 	 	
                  $    623,885.83

                	 	
                  July
                    25, 2036

                	 
	
                  II-52-B

                	 	
                  Variable(2)

                	 	 	
                  $    623,885.83

                	 	
                  July
                    25, 2036

                	 
	
                  II-53-A

                	 	
                  Variable(2)

                	 	 	
                  $    596,496.04

                	 	
                  July
                    25, 2036

                	 
	
                  II-53-B

                	 	
                  Variable(2)

                	 	 	
                  $    596,496.04

                	 	
                  July
                    25, 2036

                	 
	
                  II-54-A

                	 	
                  Variable(2)

                	 	 	
                  $    570,308.72

                	 	
                  July
                    25, 2036

                	 
	
                  II-54-B

                	 	
                  Variable(2)

                	 	 	
                  $    570,308.72

                	 	
                  July
                    25, 2036

                	 
	
                  II-55-A

                	 	
                  Variable(2)

                	 	 	
                  $    545,271.07

                	 	
                  July
                    25, 2036

                	 
	
                  II-55-B

                	 	
                  Variable(2)

                	 	 	
                  $    545,271.07

                	 	
                  July
                    25, 2036

                	 
	
                  II-56-A

                	 	
                  Variable(2)

                	 	 	
                  $    521,332.62

                	 	
                  July
                    25, 2036

                	 
	
                  II-56-B

                	 	
                  Variable(2)

                	 	 	
                  $    521,332.62

                	 	
                  July
                    25, 2036

                	 
	
                  II-57-A

                	 	
                  Variable(2)

                	 	 	
                  $11,353,605.05

                	 	
                  July
                    25, 2036

                	 
	
                  II-57-B

                	 	
                  Variable(2)

                	 	 	
                  $11,353,605.05

                	 	
                  July
                    25, 2036

                	 

        

      

    

     

    __________________

    
      	(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.

            

    

    

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    

    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 REMIC II Remittance
      Rate, the initial aggregate 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 II Regular Interests. None of the
      REMIC II Regular Interests will be certificated.

     

    

      
        	
                Designation

              	 	
                REMIC
                  II

                Remittance

                Rate

              	 	
                Initial

                Uncertificated
                  Balance

              	 	
                Latest
                  Possible

                Maturity
                  Date (1)

              
	
                AA

              	 	
                Variable(2)

              	 	
                $ 433,607,678.21

              	 	
                July
                  25, 2036

              
	
                A-1

              	 	
                Variable(2)

              	 	
                $    
                  1,552,200.00

              	 	
                July
                  25, 2036

              
	
                A-2A

              	 	
                Variable(2)

              	 	
                $   
                      923,305.00

              	 	
                July
                  25, 2036

              
	
                A-2B

              	 	
                Variable(2)

              	 	
                $   
                      404,540.00

              	 	
                July
                  25, 2036

              
	
                A-2C

              	 	
                Variable(2)

              	 	
                $   
                      251,260.00

              	 	
                July
                  25, 2036

              
	
                A-2D

              	 	
                Variable(2)

              	 	
                $   
                      200,395.00

              	 	
                July
                  25, 2036

              
	
                M-1

              	 	
                Variable(2)

              	 	
                $   
                      183,620.00

              	 	
                July
                  25, 2036

              
	
                M-2

              	 	
                Variable(2)

              	 	
                $   
                      225,655.00

              	 	
                July
                  25, 2036

              
	
                M-3

              	 	
                Variable(2)

              	 	
                $   
                        75,220.00

              	 	
                July
                  25, 2036

              
	
                M-4

              	 	
                Variable(2)

              	 	
                $  
                         81,855.00

              	 	
                July
                  25, 2036

              
	
                M-5

              	 	
                Variable(2)

              	 	
                $  
                         81,855.00

              	 	
                July
                  25, 2036

              
	
                M-6

              	 	
                Variable(2)

              	 	
                $   
                        61,945.00

              	 	
                July
                  25, 2036

              
	
                M-7

              	 	
                Variable(2)

              	 	
                $   
                        66,370.00

              	 	
                July
                  25, 2036

              
	
                M-8

              	 	
                Variable(2)

              	 	
                $ 
                          46,460.00

              	 	
                July
                  25, 2036

              
	
                M-9

              	 	
                Variable(2)

              	 	
                $   
                        61,945.00

              	 	
                July
                  25, 2036

              
	
                M-10

              	 	
                Variable(2)

              	 	
                $    
                       73,005.00

              	 	
                July
                  25, 2036

              
	
                M-11

              	 	
                Variable(2)

              	 	
                $  
                         55,305.00

              	 	
                July
                  25, 2036

              
	
                ZZ

              	 	
                Variable(2)

              	 	
                $ 
                     4,504,201.29

              	 	
                July
                  25, 2036

              
	
                P

              	 	
                Variable(2)(4)

              	 	
                $ 
                               100.00

              	 	
                July
                  25, 2036

              
	
                IO

              	 	
                Variable(2)

              	 	
                (3)

              	 	
                July
                  25, 2036

              
	
                I-SUB

              	 	
                Variable(2)

              	 	
                $  
                         10,183.08

              	 	
                July
                  25, 2036

              
	
                I-GRP

              	 	
                Variable(2)

              	 	
                $     
                      41,227.09

              	 	
                July
                  25, 2036

              
	
                II-SUB

              	 	
                Variable(2)

              	 	
                $     
                      11,674.28

              	 	
                July
                  25, 2036

              
	
                II-GRP

              	 	
                Variable(2)

              	 	
                $   
                        47,264.28

              	 	
                July
                  25, 2036

              
	
                XX

              	 	
                Variable(2)

              	 	
                $ 442,346,465.77

              	 	
                July
                  25, 2036

              

      

    

    ___________________________

    
      	
              (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 II Regular
                Interest.

            

    

    
      	
              (2)

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

            

    

    
      	
              (3)

            	
              REMIC
                II Regular Interest IO will not have an Uncertificated Balance, but
                will
                accrue interest on its Uncertificated Notional
                Amount.

            

    

    
      	(4)	
              REMIC
                II Regular
                Interest P will be entitled to 100% of the Prepayment
                Charges.

            

    

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    

    REMIC
      III

     

    As
      provided herein, the Securities Administrator will elect to treat the segregated
      pool of assets consisting of the REMIC II Regular Interests as a REMIC for
      federal income tax purposes, and such segregated pool of assets will be
      designated as “REMIC III.” The Class R-III Interest will evidence the sole class
      of “residual interests” in REMIC III 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-1

              	 	
                Variable(2)

              	 	
                $ 310,440,000.00

              	 	
                July
                  25, 2036

              
	
                Class
                  A-2A

              	 	
                Variable(2)

              	 	
                $ 184,661,000.00

              	 	
                July
                  25, 2036

              
	
                Class
                  A-2B

              	 	
                Variable(2)

              	 	
                $   80,908,000.00

              	 	
                July
                  25, 2036

              
	
                Class
                  A-2C

              	 	
                Variable(2)

              	 	
                $   50,252,000.00

              	 	
                July
                  25, 2036

              
	
                Class
                  A-2D

              	 	
                Variable(2)

              	 	
                $   40,079,000.00

              	 	
                July
                  25, 2036

              
	
                Class
                  M-1

              	 	
                Variable(2)  

              	 	
                $   36,724,000.00

              	 	
                July
                  25, 2036

              
	
                Class
                  M-2

              	 	
                Variable(2)

              	 	
                $   45,131,000.00

              	 	
                July
                  25, 2036

              
	
                Class
                  M-3

              	 	
                Variable(2)

              	 	
                $   15,044,000.00

              	 	
                July
                  25, 2036

              
	
                Class
                  M-4

              	 	
                Variable(2)

              	 	
                $   16,371,000.00

              	 	
                July
                  25, 2036

              
	
                Class
                  M-5

              	 	
                Variable(2)

              	 	
                $   16,371,000.00

              	 	
                July
                  25, 2036

              
	
                Class
                  M-6

              	 	
                Variable(2)

              	 	
                $   12,389,000.00

              	 	
                July
                  25, 2036

              
	
                Class
                  M-7 

              	 	
                Variable(2)

              	 	
                $   13,274,000.00

              	 	
                July
                  25, 2036

              
	
                Class
                  M-8 

              	 	
                Variable(2)

              	 	
                $     9,292,000.00

              	 	
                July
                  25, 2036

              
	
                Class
                  M-9 

              	 	
                Variable(2)

              	 	
                $   12,389,000.00

              	 	
                July
                  25, 2036

              
	
                Class
                  M-10

              	 	
                Variable(2)

              	 	
                $   14,601,000.00

              	 	
                July
                  25, 2036

              
	
                Class
                  M-11

              	 	
                Variable(2)

              	 	
                $   11,061,000.00

              	 	
                July
                  25, 2036

              
	
                Class
                  P 

              	 	
                N/A(3)

              	 	
                $             
                   100.00

              	 	
                July
                  25, 2036

              
	
                Class
                  CE

              	 	
                N/A(4)

              	 	
                $  15,926,629.01

              	 	
                July
                  25, 2036

              
	
                Class
                  IO Interest 

              	 	
                N/A(5)

              	 	
                (5)

              	 	
                July
                  25, 2036

              

      

    

     

    _________________

    
      	(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. The Class P Certificates
                will entitled to 100% of Prepayment
                Charges.

            

    

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

            

    

    
      	(5)	
              The
                Class IO Interest will not have a Pass-Through Rate or a Certificate
                Principal Balance, but will be entitled to 100% of amounts distributed
                on
                REMIC II Regular Interest IO.

            

    

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    

    The
      Mortgage Loans had an aggregate Scheduled Principal Balance as of the Cut-off
      Date, after deducting all Monthly Payments due on or before the Cut-off Date,
      of
      $884,913,729.01. As of the Cut-off Date, the Group I Mortgage Loans had an
      aggregate Scheduled Principal Balance equal to $412,270,899.83 and the Group
      II
      Mortgage Loans had an aggregate Scheduled Principal Balance equal to
      $472,642,829.18.

     

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

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    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.

     

    “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
      or (y) as provided in Section 3.01 hereof, but in no event below the
      standard set forth in clause (x) above.

     

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

     

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

     

    “Accrued
      Certificate Interest”: With respect to any Class A Certificate, Mezzanine
      Certificate or Class CE 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 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 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 Certificate, Mezzanine
      Certificate or Class CE 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 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 Certificate, shall be reduced by an amount equal to
      the
      portion allocable to such Class CE 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).

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    “Additional
      Form 10-D Disclosure”: Either has the meaning set forth in Section 5.06(a)(i) of
      this Agreement or with respect to the Servicer, shall be limited to the
      information set forth in Section 3.19(f)(iii) of this
      Agreement.

     

    “Additional
      Form 10-K Disclosure”: Either has the meaning set forth in Section 5.06(d)(i) of
      this Agreement or with respect to the Servicer, shall be limited to the
      information set forth in Section 3.19(f)(ii) of this
      Agreement.

     

    “Additional
      Servicer”: Means each affiliate of the Servicer that Services any of the
      Mortgage Loans and each Person who is not an affiliate of the Servicer. 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.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    “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 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 Collection Account 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 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.

     

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

     

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

     

    “Assignment”:
      An assignment of Mortgage, notice of transfer or equivalent instrument, in
      recordable form, which is sufficient under the laws of the jurisdiction where
      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.

     

    “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 Collection
      Account and Distribution Account as of the close of business on the Servicer
      Remittance Date, (b) the aggregate of any amounts deposited in the Distribution
      Account by the Servicer 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, (c) the aggregate of any P&I Advances
      for such Distribution Date made by the Servicer pursuant to Section 5.03 of
      this Agreement and (d) the aggregate of any P&I Advances made by a successor
      Servicer (including the Master Servicer) for such Distribution Date pursuant
      to
      Section 8.02 of this 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 Servicer, the Trustee, the Master Servicer, the Securities
      Administrator or the Custodian pursuant to Section 3.09 or 9.05 of this
      Agreement or otherwise payable in respect of Extraordinary Trust Fund Expenses,
      (v) the Credit Risk Management Fee, (vi) amounts deposited in the Collection
      Account or the Distribution Account in error, (vii) the amount of any Prepayment
      Charges collected by the Servicer in connection with the Principal Prepayment
      of
      any of the Mortgage Loans and (viii) amounts reimbursable to a successor
      Servicer (including the Master Servicer) pursuant to Section 8.02 of this
      Agreement.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    “Back-up
      Certification”: As defined in Section 3.19(a) of this 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 Class A Certificates and the Mezzanine 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, California, Maryland,
      Minnesota or Texas 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.

     

    “Cap
      Contracts”: Shall mean the Group I Cap Contract and the Group II Cap
      Contract.

     

    “Cap
      Counterparty”: The counterparty under each Cap Contract, and any successor in
      interest or assign. Initially, the Cap Counterparty shall be Swiss Re Financial
      Products Corporation.

     

    “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-NC2, Class A-1, Class A-2A, Class A-2B, Class A-2C, Class A-2D, Class
      M-1,
      Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class M-7, Class M-8,
      Class M-9, Class M-10, Class M-11, Class P, Class CE and Class R Certificates
      issued under this Agreement. 

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    “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 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 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
      Certificates) of such Class of Certificates as of the Closing Date.

     

    “Certificate
      Margin”: With respect to the Class A-1 Certificates and, for purposes of the
      definition of “Marker Rate”, REMIC II Regular Interest A-1, 0.140% in the case
      of each Distribution Date through and including the Optional Termination Date
      and 0.280% in the case of each Distribution Date thereafter.

     

    With
      respect to the Class A-2A Certificates and, for purposes of the definition
      of
“Marker Rate”, REMIC II Regular Interest A-2A, 0.050% in the case of each
      Distribution Date through and including the Optional Termination Date and 0.100%
      in the case of each Distribution Date thereafter.

     

    With
      respect to the Class A-2B Certificates and, for purposes of the definition
      of
“Marker Rate”, REMIC II Regular Interest A-2B, 0.120% in the case of each
      Distribution Date through and including the Optional Termination Date and 0.240%
      in the case of each Distribution Date thereafter.

     

    With
      respect to the Class A-2C Certificates and, for purposes of the definition
      of
“Marker Rate”, REMIC II Regular Interest A-2C, 0.150% in the case of each
      Distribution Date through and including the Optional Termination Date and 0.300%
      in the case of each Distribution Date thereafter.

     

    With
      respect to the Class A-2D Certificates and, for purposes of the definition
      of
“Marker Rate”, REMIC II Regular Interest A-2D, 0.240% in the case of each
      Distribution Date through and including the Optional Termination Date and 0.480%
      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 II Regular Interest M-1, 0.290% in the case of each
      Distribution Date through and including the Optional Termination Date and 0.435%
      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 II Regular Interest M-2, 0.320% in the case of each
      Distribution Date through and including the Optional Termination Date and 0.480%
      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 II Regular Interest M-3, 0.340% in the case of each
      Distribution Date through and including the Optional Termination Date and 0.510%
      in the case of each Distribution Date thereafter.

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    With
      respect to the Class M-4 Certificates and, for purposes of the definition of
      “Marker Rate”, REMIC II Regular Interest M-4, 0.370% in the case of each
      Distribution Date through and including the Optional Termination Date and 0.555%
      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 II Regular Interest M-5, 0.390% in the case of each
      Distribution Date through and including the Optional Termination Date and 0.585%
      in the case of each Distribution Date thereafter.

     

    With
      respect to the Class M-6 Certificates and, for purposes of the definition of
      “Marker Rate”, REMIC II Regular Interest M-6, 0.450% in the case of each
      Distribution Date through and including the Optional Termination Date and 0.675%
      in the case of each Distribution Date thereafter.

     

    With
      respect to the Class M-7 Certificates and, for purposes of the definition of
      “Marker Rate”, REMIC II Regular Interest M-7, 0.750% in the case of each
      Distribution Date through and including the Optional Termination Date and 1.125%
      in the case of each Distribution Date thereafter.

     

    With
      respect to the Class M-8 Certificates and, for purposes of the definition of
      “Marker Rate”, REMIC II Regular Interest M-8, 0.850% in the case of each
      Distribution Date through and including the Optional Termination Date and 1.275%
      in the case of each Distribution Date thereafter.

     

    With
      respect to the Class M-9 Certificates and, for purposes of the definition of
      “Marker Rate”, REMIC II Regular Interest M-9, 1.700% in the case of each
      Distribution Date through and including the Optional Termination Date and 2.200%
      in the case of each Distribution Date thereafter.

     

    With
      respect to the Class M-10 Certificates and, for purposes of the definition
      of
“Marker Rate”, REMIC II Regular Interest M-10, 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-11 Certificates and, for purposes of the definition
      of
“Marker Rate”, REMIC II Regular Interest M-11, 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, the 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 the 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.

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    “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 Certificate, Mezzanine
      Certificate 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 (other than
      a
      Class P Certificate) pursuant to Section 5.04 of this Agreement, minus (i)
      all distributions allocable to principal made thereon and (ii) 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 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 II Regular Interests over (B) the then aggregate
      Certificate Principal Balances of the Class A Certificates, the Mezzanine
      Certificates and the 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 and Section 4.18 of this
      Agreement.

     

    “Certifying
      Person”: Has the meaning set forth in Section 3.19 and Section 4.18 of this
      Agreement.

     

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

     

    “Class
      A
      Certificate”: Any Class A-1, Class A-2A, Class A-2B, Class A-2C or Class A-2D
      Certificate.

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

    “Class
      A
      Principal Distribution Amount”: The Class A Principal Distribution Amount is an
      amount equal to the sum of: (i) the Class A-1 Principal Distribution Amount
      and
      (ii) the Class A-2 Principal Distribution Amount.

     

    “Class
      A-1 Allocation Percentage”: With respect to any Distribution Date is the
      percentage equivalent of a fraction, the numerator of which is (x) the Group
      I
      Principal Remittance Amount for such Distribution Date and the denominator
      of
      which is (y) the Principal Remittance Amount for such Distribution
      Date.

     

    “Class
      A-1 Certificate”: Any one of the Class A-1 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 (i)
      a
      Regular Interest in REMIC III, (ii) the right to receive the related Net WAC
      Rate Carryover Amount and (iii) the obligation to pay any Class IO Distribution
      Amount.

     

    “Class
      A-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 Certificate Principal Balance of the Class A-1 Certificates
      immediately prior to such Distribution Date over (y) the lesser of (A) the
      product of (i) 50.60% and (ii) the aggregate Stated Principal Balance of the
      Group I 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
      Stated Principal Balance of the Group I 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 Group I Mortgage Loans as of the Cut-off Date.

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

    “Class
      A-2 Allocation Percentage”: With respect to any Distribution Date is the
      percentage equivalent of a fraction, the numerator of which is (x) the Group
      II
      Principal Remittance Amount for such Distribution Date and the denominator
      of
      which is (y) the Principal Remittance Amount for such Distribution
      Date.

     

    “Class
      A-2 Certificate”: Any Class A-2A, Class A-2B, Class A-2C or Class A-2D
      Certificate.

     

    “Class
      A-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 the Certificate Principal Balances of the Class A-2A,
      Class A-2B, Class A-2C and Class A-2D Certificates immediately prior to such
      Distribution Date over (y) the lesser of (A) the product of (i) 50.60% and
      (ii)
      the aggregate Stated Principal Balance of the Group II 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 Stated Principal Balance of the Group II 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 Group II Mortgage Loans as of the Cut-off
      Date.

     

    “Class
      A-2A Certificate”: Any one of the Class A-2A 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 (i)
      a
      Regular Interest in REMIC III, (ii) the right to receive the related Net WAC
      Rate Carryover Amount and (iii) the obligation to pay any Class IO Distribution
      Amount.

     

    “Class
      A-2B Certificate”: Any one of the Class A-2B 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 (i)
      a
      Regular Interest in REMIC III, (ii) the right to receive the related Net WAC
      Rate Carryover Amount and (iii) the obligation to pay any Class IO Distribution
      Amount.

     

    “Class
      A-2C Certificate”: Any one of the Class A-2C 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 (i)
      a
      Regular Interest in REMIC III, (ii) the right to receive the related Net WAC
      Rate Carryover Amount and (iii) the obligation to pay any Class IO Distribution
      Amount.

     

    “Class
      A-2D Certificate”: Any one of the Class A-2D 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 (i)
      a
      Regular Interest in REMIC III, (ii) the right to receive the related Net WAC
      Rate Carryover Amount and (iii) the obligation to pay any Class IO Distribution
      Amount.

     

    “Class
      CE
      Certificate”: Any one of the Class CE 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 (i) a Regular Interest in
      REMIC III, (ii) beneficial ownership of the Reserve Fund and (iii) beneficial
      ownership of the Supplemental Interest Trust.

     

    “Class
      IO Distribution Amount”: As defined in Section 5.07(e) hereof. For
      purposes of clarity, the Class IO Distribution Amount for any Distribution
      Date
      shall equal the amount payable to the Supplemental Interest Trust on such
      Distribution Date in excess of the amount payable on the Class IO Interest
      on
      such Distribution Date, all as further provided in Section 5.07(e)
      hereof.

     

    “Class
      IO
      Interest”: An uncertificated interest in the Trust Fund held by the Trustee,
      evidencing a REMIC Regular Interest in REMIC III 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 (i)
      a
      Regular Interest in REMIC III, (ii) the right to receive the related Net WAC
      Rate Carryover Amount and (iii) the obligation to pay any Class IO Distribution
      Amount.

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

     

    “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 aggregate 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) 58.90% and
      (ii)
      the aggregate Stated Principal Balance of the Mortgage Loans as of the last
      day
      of the related Due Period (after giving effect to scheduled payments of
      principal due during the related Due Period, to the extent received or advanced,
      and unscheduled collections of principal received during the related Prepayment
      Period) and (B) the aggregate Stated Principal Balance of the Mortgage Loans
      as
      of the last day of the related Due Period (after giving effect to scheduled
      payments of principal due during the related Due Period, to the extent received
      or advanced, and unscheduled collections of principal received during the
      related Prepayment Period) 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 (i)
      a
      Regular Interest in REMIC III, (ii) the right to receive the related Net WAC
      Rate Carryover Amount and (iii) the obligation to pay any Class IO Distribution
      Amount.

     

    “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 aggregate 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) 69.10% and (ii) the aggregate Stated Principal Balance of the
      Mortgage Loans as of the last day of the related Due Period (after giving effect
      to scheduled payments of principal due during the related Due Period, to the
      extent received or advanced, and unscheduled collections of principal received
      during the related Prepayment Period) and (B) the aggregate Stated Principal
      Balance of the Mortgage Loans as of the last day of the related Due Period
      (after giving effect to scheduled payments of principal due during the related
      Due Period, to the extent received or advanced, and unscheduled collections
      of
      principal received during the related Prepayment Period) 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 (i)
      a
      Regular Interest in REMIC III, (ii) the right to receive the related Net WAC
      Rate Carryover Amount and (iii) the obligation to pay any Class IO Distribution
      Amount.

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

     

    “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 aggregate 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) 72.50% and (ii) the aggregate Stated
      Principal Balance of the Mortgage Loans as of the last day of the related Due
      Period (after giving effect to scheduled payments of principal due during the
      related Due Period, to the extent received or advanced, and unscheduled
      collections of principal received during the related Prepayment Period) and
      (B)
      the aggregate Stated Principal Balance of the Mortgage Loans as of the last
      day
      of the related Due Period (after giving effect to scheduled payments of
      principal due during the related Due Period, to the extent received or advanced,
      and unscheduled collections of principal received during the related Prepayment
      Period) 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 (i)
      a
      Regular Interest in REMIC III, (ii) the right to receive the related Net WAC
      Rate Carryover Amount and (iii) the obligation to pay any Class IO Distribution
      Amount.

     

    “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 aggregate 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) 76.20% and
      (ii)
      the aggregate Stated Principal Balance of the Mortgage Loans as of the last
      day
      of the related Due Period (after giving effect to scheduled payments of
      principal due during the related Due Period, to the extent received or advanced
      and unscheduled collections of principal received during the related Prepayment
      Period) and (B) the aggregate Stated Principal Balance of the Mortgage Loans
      as
      of the last day of the related Due Period (after giving effect to scheduled
      payments of principal due during the related Due Period, to the extent received
      or advanced and unscheduled collections of principal received during the related
      Prepayment Period) minus the product of (i) 0.50% and (ii) the aggregate
      principal balance of the Mortgage Loans as of the Cut-off Date.

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

     

    “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 (i)
      a
      Regular Interest in REMIC III, (ii) the right to receive the related Net WAC
      Rate Carryover Amount and (iii) the obligation to pay any Class IO Distribution
      Amount.

     

    “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 aggregate 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 (vi) 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) 79.90% and (ii) the aggregate Stated Principal Balance of the
      Mortgage Loans as of the last day of the related Due Period (after giving effect
      to scheduled payments of principal due during the related Due Period, to the
      extent received or advanced and unscheduled collections of principal received
      during the related Prepayment Period) and (B) the aggregate Stated Principal
      Balance of the Mortgage Loans as of the last day of the related Due Period
      (after giving effect to scheduled payments of principal due during the related
      Due Period, to the extent received or advanced and unscheduled collections
      of
      principal received during the related Prepayment Period) 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-6 Certificate”: Any one of the Class M-6 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 (i)
      a
      Regular Interest in REMIC III, (ii) the right to receive the related Net WAC
      Rate Carryover Amount and (iii) the obligation to pay any Class IO Distribution
      Amount.

     

    “Class
      M-6 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 aggregate 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, (vi) the Certificate Principal Balance of the Class M-5 Certificates
      after
      taking into account the payment of the Class M-5 Principal Distribution Amount
      on such Distribution Date and (vii) the Certificate Principal Balance of the
      Class M-6 Certificates immediately prior to such Distribution Date over (y)
      the
      lesser of (A) the product of (i) 82.70% and (ii) the aggregate Stated Principal
      Balance of the Mortgage Loans as of the last day of the related Due Period
      (after giving effect to scheduled payments of principal due during the related
      Due Period, to the extent received or advanced and unscheduled collections
      of
      principal received during the related Prepayment Period) and (B) the aggregate
      Stated Principal Balance of the Mortgage Loans as of the last day of the related
      Due Period (after giving effect to scheduled payments of principal due during
      the related Due Period, to the extent received or advanced and unscheduled
      collections of principal received during the related Prepayment Period) minus
      the product of (i) 0.50% and (ii) the aggregate principal balance of the
      Mortgage Loans as of the Cut-off Date.

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

     

    “Class
      M-7 Certificate”: Any one of the Class M-7 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 (i)
      a
      Regular Interest in REMIC III, (ii) the right to receive the related Net WAC
      Rate Carryover Amount and (iii) the obligation to pay any Class IO Distribution
      Amount.

     

    “Class
      M-7 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 aggregate 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, (vi) the Certificate Principal Balance of the Class M-5 Certificates
      after
      taking into account the payment of the Class M-5 Principal Distribution Amount
      on such Distribution Date, (vii) the Certificate Principal Balance of the Class
      M-6 Certificates after taking into account the payment of the Class M-6
      Principal Distribution Amount on such Distribution Date and (viii) the
      Certificate Principal Balance of the Class M-7 Certificates immediately prior
      to
      such Distribution Date over (y) the lesser of (A) the product of (i) 85.70%
      and
      (ii) the aggregate Stated Principal Balance of the Mortgage Loans as of the
      last
      day of the related Due Period (after giving effect to scheduled payments of
      principal due during the related Due Period, to the extent received or advanced
      and unscheduled collections of principal received during the related Prepayment
      Period) and (B) the aggregate Stated Principal Balance of the Mortgage Loans
      as
      of the last day of the related Due Period (after giving effect to scheduled
      payments of principal due during the related Due Period, to the extent received
      or advanced and unscheduled collections of principal received during the related
      Prepayment Period) minus the product of (i) 0.50% and (ii) the aggregate
      principal balance of the Mortgage Loans as of the Cut-off Date.

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

     

    “Class
      M-8 Certificate”: Any one of the Class M-8 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 (i)
      a
      Regular Interest in REMIC III, (ii) the right to receive the related Net WAC
      Rate Carryover Amount and (iii) the obligation to pay any Class IO Distribution
      Amount.

     

    “Class
      M-8 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 aggregate 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, (vi) the Certificate Principal Balance of the Class M-5 Certificates
      after
      taking into account the payment of the Class M-5 Principal Distribution Amount
      on such Distribution Date, (vii) the Certificate Principal Balance of the Class
      M-6 Certificates after taking into account the payment of the Class M-6
      Principal Distribution Amount on such Distribution Date, (viii) the Certificate
      Principal Balance of the Class M-7 Certificates after taking into account the
      payment of the Class M-7 Principal Distribution Amount on such Distribution
      Date
      and (ix) the Certificate Principal Balance of the Class M-8 Certificates
      immediately prior to such Distribution Date over (y) the lesser of (A) the
      product of (i) 87.80% and (ii) the aggregate Stated Principal Balance of the
      Mortgage Loans as of the last day of the related Due Period (after giving effect
      to scheduled payments of principal due during the related Due Period, to the
      extent received or advanced and unscheduled collections of principal received
      during the related Prepayment Period) and (B) the aggregate Stated Principal
      Balance of the Mortgage Loans as of the last day of the related Due Period
      (after giving effect to scheduled payments of principal due during the related
      Due Period, to the extent received or advanced and unscheduled collections
      of
      principal received during the related Prepayment Period) 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-9 Certificate”: Any one of the Class M-9 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 (i)
      a
      Regular Interest in REMIC III, (ii) the right to receive the related Net WAC
      Rate Carryover Amount and (iii) the obligation to pay any Class IO Distribution
      Amount.

     

    “Class
      M-9 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 aggregate 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, (vi) the Certificate Principal Balance of the Class M-5 Certificates
      after
      taking into account the payment of the Class M-5 Principal Distribution Amount
      on such Distribution Date, (vii) the Certificate Principal Balance of the Class
      M-6 Certificates after taking into account the payment of the Class M-6
      Principal Distribution Amount on such Distribution Date, (viii) the Certificate
      Principal Balance of the Class M-7 Certificates after taking into account the
      payment of the Class M-7 Principal Distribution Amount on such Distribution
      Date, (ix) the Certificate Principal Balance of the Class M-8 Certificates
      after
      taking into account the payment of the Class M-8 Principal Distribution Amount
      on such Distribution Date and (x) the Certificate Principal Balance of the
      Class
      M-9 Certificates immediately prior to such Distribution Date over (y) the lesser
      of (A) the product of (i) 90.60% and (ii) the aggregate Stated Principal Balance
      of the Mortgage Loans as of the last day of the related Due Period (after giving
      effect to scheduled payments of principal due during the related Due Period,
      to
      the extent received or advanced and unscheduled collections of principal
      received during the related Prepayment Period) and (B) the aggregate Stated
      Principal Balance of the Mortgage Loans as of the last day of the related Due
      Period (after giving effect to scheduled payments of principal due during the
      related Due Period, to the extent received or advanced and unscheduled
      collections of principal received during the related Prepayment Period) minus
      the product of (i) 0.50% and (ii) the aggregate principal balance of the
      Mortgage Loans as of the Cut-off Date.

     

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

     

    “Class
      M-10 Certificate”: Any one of the Class M-10 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 (i)
      a
      Regular Interest in REMIC III, (ii) the right to receive the related Net WAC
      Rate Carryover Amount and (iii) the obligation to pay any Class IO Distribution
      Amount.

     

    “Class
      M-10 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 aggregate 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, (vi) the Certificate Principal Balance of the Class M-5 Certificates
      after
      taking into account the payment of the Class M-5 Principal Distribution Amount
      on such Distribution Date, (vii) the Certificate Principal Balance of the Class
      M-6 Certificates after taking into account the payment of the Class M-6
      Principal Distribution Amount on such Distribution Date, (viii) the Certificate
      Principal Balance of the Class M-7 Certificates after taking into account the
      payment of the Class M-7 Principal Distribution Amount on such Distribution
      Date, (ix) the Certificate Principal Balance of the Class M-8 Certificates
      after
      taking into account the payment of the Class M-8 Principal Distribution Amount
      on such Distribution Date) (x) the Certificate Principal Balance of the Class
      M-9 Certificates after taking into account the payment of the Class M-9
      Principal Distribution Amount on such Distribution Date and (xi) the Certificate
      Principal Balance of the Class M-10 Certificates immediately prior to such
      Distribution Date over (y) the lesser of (A) the product of (i) 93.90% and
      (ii)
      the aggregate Stated Principal Balance of the Mortgage Loans as of the last
      day
      of the related Due Period (after giving effect to scheduled payments of
      principal due during the related Due Period, to the extent received or advanced
      and unscheduled collections of principal received during the related Prepayment
      Period) and (B) the aggregate Stated Principal Balance of the Mortgage Loans
      as
      of the last day of the related Due Period (after giving effect to scheduled
      payments of principal due during the related Due Period, to the extent received
      or advanced and unscheduled collections of principal received during the related
      Prepayment Period) minus the product of (i) 0.50% and (ii) the aggregate
      principal balance of the Mortgage Loans as of the Cut-off Date.

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

     

    “Class
      M-11 Certificate”: Any one of the Class M-11 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 (i)
      a
      Regular Interest in REMIC III, (ii) the right to receive the related Net WAC
      Rate Carryover Amount and (iii) the obligation to pay any Class IO Distribution
      Amount.

     

    “Class
      M-11 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 aggregate 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, (vi) the Certificate Principal Balance of the Class M-5 Certificates
      after
      taking into account the payment of the Class M-5 Principal Distribution Amount
      on such Distribution Date, (vii) the Certificate Principal Balance of the Class
      M-6 Certificates after taking into account the payment of the Class M-6
      Principal Distribution Amount on such Distribution Date, (viii) the Certificate
      Principal Balance of the Class M-7 Certificates after taking into account the
      payment of the Class M-7 Principal Distribution Amount on such Distribution
      Date, (ix) the Certificate Principal Balance of the Class M-8 Certificates
      after
      taking into account the payment of the Class M-8 Principal Distribution Amount
      on such Distribution Date, (x) the Certificate Principal Balance of the Class
      M-9 Certificates after taking into account the payment of the Class M-9
      Principal Distribution Amount on such Distribution Date, (xi) the Certificate
      Principal Balance of the Class M-10 Certificates after taking into account
      the
      payment of the Class M-10 Principal Distribution Amount on such Distribution
      Date and (xii) the Certificate Principal Balance of the Class M-11 Certificates
      immediately prior to such Distribution Date over (y) the lesser of (A) the
      product of (i) 96.40% and (ii) the aggregate Stated Principal Balance of the
      Mortgage Loans as of the last day of the related Due Period (after giving effect
      to scheduled payments of principal due during the related Due Period, to the
      extent received or advanced and unscheduled collections of principal received
      during the related Prepayment Period) and (B) the aggregate Stated Principal
      Balance of the Mortgage Loans as of the last day of the related Due Period
      (after giving effect to scheduled payments of principal due during the related
      Due Period, to the extent received or advanced and unscheduled collections
      of
      principal received during the related Prepayment Period) minus the product
      of
      (i) 0.50% and (ii) the aggregate principal balance of the Mortgage Loans as
      of
      the Cut-off Date.

     

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

     

    “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
      III 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,
      the
      Class R-II Interest and the Class R-III Interest.

     

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

     

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

     

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

     

    “Closing
      Date”: September 15, 2006.

     

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

     

    “Collection
      Account”: The separate account or accounts created and maintained, or caused to
      be created and maintained, by the Servicer pursuant to Section 3.08(a) of
      this Agreement for the benefit of the Certificateholders, which shall be
      entitled “Countrywide Home Loans Servicing LP, as the 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-NC2, Asset Backed
      Pass-Through Certificates”. The 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: CLTA Structured
      Finance/ACE Securities Corp., 2006-NC2, 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 Servicer
      and (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-NC2), and (B) for all other purposes, Wells Fargo
      Bank, National Association, P.O. Box 98, Columbia, Maryland 21046, Attention:
      Corporate Trust (ACE 2006-NC2) (or for overnight deliveries, at 9062 Old
      Annapolis Road, Columbia, Maryland 21045, Attention: Corporate Trust (ACE
      2006-NC2)), 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 Servicer and the Trustee.

     

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

    

     

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

     

    
      	
              REMIC
                II Regular Interest

            	 	
              Class

            
	
              REMIC
                II Regular Interest A-1

            	 	
              A-1

            
	
              REMIC
                II Regular Interest A-2A

            	 	
              A-2A

            
	
              REMIC
                II Regular Interest A-2B

            	 	
              A-2B

            
	
              REMIC
                II Regular Interest A-2C

            	 	
              A-2C

            
	
              REMIC
                II Regular Interest A-2D

            	 	
              A-2D

            
	
              REMIC
                II Regular Interest M-1

            	 	
              M-1

            
	
              REMIC
                II Regular Interest M-2

            	 	
              M-2

            
	
              REMIC
                II Regular Interest M-3

            	 	
              M-3

            
	
              REMIC
                II Regular Interest M-4

            	 	
              M-4

            
	
              REMIC
                II Regular Interest M-5

            	 	
              M-5

            
	
              REMIC
                II Regular Interest M-6

            	 	
              M-6

            
	
              REMIC
                II Regular Interest M-7

            	 	
              M-7

            
	
              REMIC
                II Regular Interest M-8

            	 	
              M-8

            
	
              REMIC
                II Regular Interest M-9

            	 	
              M-9

            
	
              REMIC
                II Regular Interest M-10

            	 	
              M-10

            
	
              REMIC
                II Regular Interest M-11

            	 	
              M-11

            
	
              REMIC
                II Regular Interest P

            	 	
              P

            

    

    

    “Countrywide”:
      Countrywide Home Loans Servicing LP or any successor thereto appointed hereunder
      in connection with the servicing and administration of the Mortgage
      Loans.

     

    “Credit
      Enhancement Percentage”: For any Distribution Date, the percentage equivalent of
      a fraction, the numerator of which is the sum of the aggregate Certificate
      Principal Balances of the Mezzanine Certificates and the Class CE Certificates,
      and the denominator of which is the aggregate Stated Principal Balance of the
      Mortgage Loans, calculated after taking into account distributions of principal
      on the Mortgage Loans and distribution of the Principal Distribution Amount
      to
      the Certificates then entitled to distributions of principal on such
      Distribution Date.

     

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

    

     

    “Credit
      Risk Management Agreements”: The agreements between the Credit Risk Manager and
      the 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 Stated 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”: 0.0135% per annum.

     

    “Credit
      Risk Manager”: Clayton Fixed Income Services Inc. (formerly known as The
      Murrayhill Company), a Colorado corporation, and its successors and
      assigns.

     

    “Custodial
      Agreement”: The Custodial Agreement dated as of September 1, 2006, among the
      Trustee, DBNTC and the Servicer, as may be amended or supplemented from time
      to
      time, or any other custodial agreement entered into after the date hereof with
      respect to any Mortgage Loan subject to this Agreement.

     

    “Custodian”:
      DBNTC 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, September 1, 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.

     

    “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.

     

    
      
        
        

      

      
        28

        
          

        

      

      
        
        

      

    

     

    “Delinquency
      Percentage”: As of the last day of the related Due Period, the percentage
      equivalent of a fraction, the numerator of which is the aggregate Stated
      Principal Balance of all Mortgage Loans that, as of the last day of the previous
      calendar month, are sixty (60) or more days delinquent, are in foreclosure,
      have
      been converted to REO Properties or have been discharged by reason of
      bankruptcy, and the denominator of which is the aggregate Stated Principal
      Balance of the Mortgage Loans and REO Properties as of the last day of the
      previous calendar month.

     

    “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 each Distribution Date, the 18th day of the calendar
      month in which such Distribution Date occurs, or if such 18th day is not a
      Business Day, the Business Day immediately preceding such 18th day. 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 Servicer, on behalf of the Trustee,
      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.

     

    
      
        
        

      

      
        29

        
          

        

      

      
        
        

      

    

     

    “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(b) 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-NC2”. 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 October
      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 any Distribution Date, 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, (iii) a trust account or accounts maintained with a federal
      depository institution or state chartered depository institution acting in
      its
      fiduciary capacity or (iv) an account or accounts acceptable to each Rating
      Agency as confirmed and approved in writing by each Rating Agency. Eligible
      Accounts may bear interest.

     

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

     

    
      
        
        

      

      
        30

        
          

        

      

      
        
        

      

    

     

    “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 Servicer is entitled to be reimbursed
      from Liquidation Proceeds with respect to such liquidated Mortgage Loan pursuant
      to Section 3.09 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 Custodian 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.

     

    “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
      originator, the Sponsor or the Master Servicer pursuant to or as contemplated
      by
      Section 2.03, 3.13(c) or Section 10.01 of this Agreement), 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, which determination shall be evidenced by a certificate
      of a
      Servicing Officer of the Servicer delivered to the Master Servicer and
      maintained in its records.

     

    “Fitch”:
      Fitch Ratings or any successor in interest.

     

    “Form
      8-K
      Disclosure Information”: Either has the meaning set forth in
      Section 5.06(b) of this Agreement or with respect to the Servicer, shall be
      limited to the information set forth in Section 3.19(f)(i) and 3.19(g) of
      this Agreement.

     

    “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 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.

     

    
      
        
        

      

      
        31

        
          

        

      

      
        
        

      

    

     

    “Group
      I
      Allocation Percentage”: The aggregate principal balance of the Group I Mortgage
      Loans divided by the sum of the aggregate principal balance of the Group I
      Mortgage Loans and Group II Mortgage Loans.

     

    “Group
      I
      Cap Contract”: The Cap Contract between the Trustee and the Cap Counterparty,
      for the benefit of the Holders of the Class A-1 Certificates and the Mezzanine
      Certificates. 

     

    “Group
      I
      Interest Remittance Amount”: With respect to any Distribution Date, that portion
      of the Available Distribution Amount for such Distribution Date that represents
      interest received or advanced on the Group I Mortgage Loans (net of the
      Administration Fees and any Prepayment Charges and after taking into account
      amounts payable or reimbursable to the Trustee, the Custodian, the Securities
      Administrator, the Credit Risk Manager, the Master Servicer or the Servicer
      pursuant to this Agreement or the Custodial Agreement with respect to the Group
      I Mortgage Loans).

     

    “Group
      I
      Mortgage Loans”: Those Mortgage Loans identified on the Mortgage Loan Schedule
      as Group I Mortgage Loans.

     

    “Group
      I
      Principal Distribution Amount”: With respect to any Distribution Date, the sum
      of (i) the principal portion of all Monthly Payments on the Group I 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 Group I Mortgage Loan or, in the
      case
      of a substitution, certain amounts representing a principal adjustment, during
      the related Prepayment Period 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 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 Group I Mortgage Loans, net
      in
      each case of payments or reimbursements to the Trustee, the Custodian, the
      Credit Risk Manager, the Master Servicer, the Securities Administrator or the
      Servicer and (iv) the Class A-1 Allocation Percentage of the amount of any
      Overcollateralization Increase Amount for such Distribution Date minus
      (v) the
      Class A-1 Allocation Percentage of the amount of any Overcollateralization
      Reduction Amount for such Distribution Date.

     

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

     

    “Group
      II
      Allocation Percentage”: The aggregate principal balance of the Group II Mortgage
      Loans divided by the sum of the aggregate principal balance of the Group I
      Mortgage Loans and Group II Mortgage Loans.

     

    “Group
      II
      Cap Contract”: The Cap Contract between the Trustee and the Cap Counterparty,
      for the benefit of the Class A-2 Certificates and the Mezzanine
      Certificates.

     

    “Group
      II
      Interest Remittance Amount”: With respect to any Distribution Date, that portion
      of the Available Distribution Amount for such Distribution Date that represents
      interest received or advanced on the Group II Mortgage Loans (net of the
      Administration Fees and any Prepayment Charges and after taking into account
      amounts payable or reimbursable to the Trustee, the Custodian, the Securities
      Administrator, the Credit Risk Manager, the Master Servicer or the Servicer
      pursuant to this Agreement or the Custodial Agreement with respect to the Group
      II Mortgage Loans).

     

    
      
        
        

      

      
        32

        
          

        

      

      
        
        

      

    

     

    “Group
      II
      Mortgage Loans”: Those Mortgage Loans identified on the Mortgage Loan Schedule
      as Group II Mortgage Loans.

     

    “Group
      II
      Principal Distribution Amount”: With respect to any Distribution Date, the sum
      of (i) the principal portion of all Monthly Payments on the Group II 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 Group II Mortgage Loan or, in the
      case of a substitution, certain amounts representing a principal adjustment,
      during the related Prepayment Period 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 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 Group II Mortgage Loans, net
      in
      each case of payments or reimbursements to the Trustee, the Custodian, the
      Credit Risk Manager, the Master Servicer, the Securities Administrator or the
      Servicer and (iv) the Class A-2 Allocation Percentage of the amount of any
      Overcollateralization Increase Amount for such Distribution Date minus
      (v) the
      Class A-2 Allocation Percentage of the amount of any Overcollateralization
      Reduction Amount for such Distribution Date.

     

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

     

    “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
      Servicer, the Sponsor, the 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 Servicer, the Sponsor, the originator or any Affiliate thereof, (c) is
      not
      connected with the Depositor, the Master Servicer, the Securities Administrator,
      the Servicer, the Sponsor, the 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 the 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.

     

    
      
        
        

      

      
        33

        
          

        

      

      
        
        

      

    

     

    “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 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 forty-five
      (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.

     

    “Institutional
      Accredited Investor”: As defined in Section 6.01(c).

     

    “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 Class A
      Certificates and the Mezzanine 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
      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 A
      Certificate or Mezzanine Certificate, 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 Interests and REMIC II Regular Interests (other
      than REMIC II Regular Interest P) and any Interest Accrual Period therefor,
      the
      second London Business Day preceding the commencement of such Interest Accrual
      Period.

     

    
      
        
        

      

      
        34

        
          

        

      

      
        
        

      

    

     

    “Interest
      Distribution Amount”: With respect to any Distribution Date and any Class A
      Certificates, any Mezzanine Certificates and any Class CE Certificates, 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 sum of: (i) the
      Group I Interest Remittance Amount and (ii) the Group II Interest Remittance
      Amount.

     

    “Last
      Scheduled Distribution Date”: The Distribution Date in July 2036, 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 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 (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.

     

    
      
        
        

      

      
        35

        
          

        

      

      
        
        

      

    

     

    “Marker
      Rate”: With respect to the Class CE Certificates and any Distribution Date, a
      per annum rate equal to two (2) times the weighted average of the REMIC II
      Remittance Rate for each of REMIC II Regular Interest A-1, REMIC II Regular
      Interest A-2A, REMIC II Regular Interest A-2B, REMIC II Regular Interest A-2C,
      REMIC II Regular Interest A-2D, REMIC II Regular Interest M-1, REMIC II Regular
      Interest M-2, REMIC II Regular Interest M-3, REMIC II Regular Interest M-4,
      REMIC II Regular Interest M-5, REMIC II Regular Interest M-6, REMIC II Regular
      Interest M-7, REMIC II Regular Interest M-8, REMIC II Regular Interest M-9,
      REMIC II Regular Interest M-10, REMIC II Regular Interest M-11 and REMIC II
      Regular Interest ZZ, with the rate on each such REMIC II Regular Interest (other
      than REMIC II Regular Interest ZZ) 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 Certificate for the purpose of this
      calculation for such Distribution Date and with the rate on REMIC II Regular
      Interest ZZ subject to a cap of zero for the purpose of this calculation;
      provided however, each such cap for each REMIC II 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”: 0.0050% per annum.

     

    “Maximum
      ZZ Uncertificated Interest Deferral Amount”: With respect to any Distribution
      Date, the excess of (i) accrued interest at the REMIC II Remittance Rate
      applicable to REMIC II Regular Interest ZZ for such Distribution Date on a
      balance equal to the Uncertificated Balance of REMIC II Regular Interest ZZ
      minus the REMIC II Overcollateralization Amount, in each case for such
      Distribution Date, over (ii) Uncertificated Interest on REMIC II Regular
      Interest A-1, REMIC II Regular Interest A-2A, REMIC II Regular Interest A-2B,
      REMIC II Regular Interest A-2C, REMIC II Regular Interest A-2D, REMIC II Regular
      Interest M-1, REMIC II Regular Interest M-2, REMIC II Regular Interest M-3,
      REMIC II Regular Interest M-4, REMIC II Regular Interest M-5, REMIC II Regular
      Interest M-6, REMIC II Regular Interest M-7, REMIC II Regular Interest M-8,
      REMIC II Regular Interest M-9, REMIC II Regular Interest M-10 and REMIC II
      Regular Interest M-11 for such Distribution Date, with the rate on each such
      REMIC II 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 Certificate for the purpose of this
      calculation for such Distribution Date; provided however, each such cap for
      each
      REMIC II 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.

     

    
      
        
        

      

      
        36

        
          

        

      

      
        
        

      

    

     

    “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, Class M-5, Class
      M-6, Class M-7, Class M-8, Class M-9, Class M-10 or Class M-11
      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, 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 or local laws; (b) without giving effect to any extension granted
      or agreed to by the Servicer pursuant to Section 3.01 of this 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.

     

    
      
        
        

      

      
        37

        
          

        

      

      
        
        

      

    

     

    “Mortgage
      Loan”: Each mortgage loan transferred and assigned to the Trustee and the
      Mortgage Loan Documents for which have been delivered to the Custodian pursuant
      to Section 2.01 of this Agreement and pursuant to the 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 Custodian under the Custodial Agreement on behalf of the
      Trustee.

     

    “Mortgage
      Loan Purchase Agreement”: Shall mean the Mortgage Loan Purchase Agreement dated
      as of September 15, 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 Group I Mortgage Loans and the Group
      II
      Mortgage Loans, attached hereto as Schedule 1. The Depositor shall deliver
      or
      cause the delivery of the initial Mortgage Loan Schedule to the Servicer, the
      Master Servicer, the Custodian 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;

       

      
        
          
          

        

        
          38

          
            

          

        

        
          
          

        

      

       

      (xii) the
        amount of the Monthly Payment at origination;

       

      (xiii) the
        amount of the Monthly Payment as of the Cut-off Date;

       

      (xiv) the
        last Due Date on which a Monthly Payment was actually applied to the unpaid
        Stated Principal Balance;

       

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

       

      (xvi) the
        Stated 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 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);

       

      
        
          
          

        

        
          39

          
            

          

        

        
          
          

        

      

       

      (xxix) a
        code indicating if the Mortgage Loan is subject to a primary insurance policy
        or
        lender paid mortgage insurance policy and 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) with
        respect to each Mortgage Loan registered on MERS, the MIN;

       

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

       

      (xxxviii) the
        Servicer; and

       

      (xxxix) the
        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 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.

     

    
      
        
        

      

      
        40

        
          

        

      

      
        
        

      

    

     

    “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)
      any Overcollateralization Reduction Amount for such Distribution Date and (ii)
      the excess of (x) the Available Distribution Amount for such Distribution Date
      over (y) the sum for such Distribution Date of (A) the aggregate Senior Interest
      Distribution Amounts payable to the Holders of the Class A Certificates, (B)
      the
      aggregate Interest Distribution Amounts payable to the holders of the Mezzanine
      Certificates, (C) the Principal Remittance Amount and (D) any Net Swap Payment
      or Swap Termination Payment (not caused by the occurrence of a Swap Provider
      Trigger Event) owed to the Swap Provider.

     

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

     

    “Net
      WAC
      Pass-Through Rate”: With respect to the Class A-1 Certificates and any
      Distribution Date, a rate per annum (adjusted for the actual number of days
      elapsed in the related Interest Accrual Period) equal to the product of (i)
      twelve and (ii) a fraction, expressed as a percentage, the numerator of which
      is
      the amount of interest which accrued on the Group I Mortgage Loans in the
      related Due Period minus the fees payable to the Servicer, the Master Servicer
      and the Credit Risk Manager with respect to the Group I Mortgage Loans for
      such
      Distribution Date and the Group I Allocation Percentage of any Net Swap Payment
      payable to the Swap Provider and Swap Termination Payment payable to the Swap
      Provider which was not caused by the occurrence of a Swap Provider Trigger
      Event, in each case for such Distribution Date and the denominator of which
      is
      the aggregate principal balance of the Group I Mortgage Loans as of the last
      day
      of the immediately preceding Due Period (or as of the Cut-off Date with respect
      to the first Distribution Date). For federal income tax purposes, such rate
      shall be 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 REMIC
      II
      Remittance Rate on REMIC II Regular Interest I-GRP, weighted on the basis of
      the
      Uncertificated Balance of such REMIC II Regular Interest, and the treatment
      of
      the Class IO Distribution Amount and Swap Termination Payments is described
      in
      Sections 5.07 and 5.08 hereof.

     

    
      
        
        

      

      
        41

        
          

        

      

      
        
        

      

    

     

    With
      respect to the Class A-2 Certificates and any Distribution Date, a rate per
      annum (adjusted for the actual number of days elapsed in the related Interest
      Accrual Period) equal to the product of (i) twelve and (ii) a fraction,
      expressed as a percentage, the numerator of which is the amount of interest
      which accrued on the Group II Mortgage Loans in the related Due Period minus
      the
      fees payable to the Servicer, the Master Servicer and the Credit Risk Manager
      with respect to the Group II Mortgage Loans for such Distribution Date and
      the
      Group II Allocation Percentage of any Net Swap Payment payable to the Swap
      Provider and Swap Termination Payment payable to the Swap Provider which was
      not
      caused by the occurrence of a Swap Provider Trigger Event, in each case for
      such
      Distribution Date and the denominator of which is the aggregate principal
      balance of the Group II Mortgage Loans as of the last day of the immediately
      preceding Due Period (or as of the Cut-off Date with respect to the first
      Distribution Date). For federal income tax purposes, such rate shall be 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 REMIC II
      Remittance Rate on REMIC II Regular Interest II-GRP, weighted on the basis
      of
      the Uncertificated Balance of such REMIC II Regular Interest, and the treatment
      of the Class IO Distribution Amount and Swap Termination Payments is described
      in Sections 5.07 and 5.08 hereof.

     

    With
      respect to the Mezzanine Certificates and any Distribution Date a rate per
      annum
      equal to the weighted average (weighted in proportion to the results of
      subtracting from the Scheduled Principal Balance of each loan group, the
      Certificate Principal Balance of the related Class A Certificates), of (i)
      the
      Net WAC Pass-Through Rate for the Class A-1 Certificates and (ii) the Net WAC
      Pass-Through Rate for the Class A-2 Certificates. For federal income tax
      purposes, such rate shall be 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 REMIC II Remittance Rates on (a) REMIC II Regular Interest I-SUB,
      subject to a cap and a floor equal to the REMIC II Remittance Rate on REMIC
      II
      Regular Interest I-GRP, and (b) REMIC II Regular Interest II-SUB, subject to
      a
      cap and a floor equal to the REMIC II Remittance Rate on REMIC II Regular
      Interest II-GRP, weighted on the basis of the Uncertificated Balance of each
      such REMIC II Regular Interest, and the treatment of the Class IO Distribution
      Amount and Swap Termination Payments is described in Sections 5.07 and 5.08
      hereof.

     

    “Net
      WAC
      Rate Carryover Amount”: With respect to any Class A Certificate or Mezzanine
      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.

     

    
      
        
        

      

      
        42

        
          

        

      

      
        
        

      

    

     

    “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 Servicer or a successor to the Servicer (including 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.

     

    “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 Servicer or a successor to the 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.

     

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

     

    “Notional
      Amount”: With respect to the Class CE Certificates and any Distribution Date,
      the Uncertificated Balance of the REMIC II Regular Interests (other than REMIC
      II Regular Interest P) for such Distribution Date. As of the Closing Date,
      the
      Notional Amount of the Class CE Certificates is equal to
      $884,913,629.01.

     

    “Offered
      Certificates”: The Class A, Class M-1, Class M-2, Class M-3, Class M-4, Class
      M-5, Class M-6, Class M-7, Class M-8 and Class M-9 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 a person or persons having like
      responsibilities.

     

    “One-Month
      LIBOR”: With respect to the Class A Certificates, the Mezzanine Certificates,
      REMIC II Regular Interests (other than REMIC II Regular Interest P) 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.

     

    
      
        
        

      

      
        43

        
          

        

      

      
        
        

      

    

     

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

     

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

     

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

     

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

     

    With
      respect to the Class A-2D Certificates and, for purposes of the definition
      of
“Marker Rate”, REMIC II Regular Interest A-2D, 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 II Regular Interest M-1, 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 II Regular Interest M-2, 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 II Regular Interest M-3, a per annum rate equal to
      One-Month LIBOR plus the related Certificate Margin.

     

    
      
        
        

      

      
        44

        
          

        

      

      
        
        

      

    

     

    With
      respect to the Class M-4 Certificates and, for purposes of the definition of
      “Marker Rate”, REMIC II Regular Interest M-4, 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 II Regular Interest M-5, a per annum rate equal to
      One-Month LIBOR plus the related Certificate Margin.

     

    With
      respect to the Class M-6 Certificates and, for purposes of the definition of
      “Marker Rate”, REMIC II Regular Interest M-6, a per annum rate equal to
      One-Month LIBOR plus the related Certificate Margin.

     

    With
      respect to the Class M-7 Certificates and, for purposes of the definition of
      “Marker Rate”, REMIC II Regular Interest M-7, a per annum rate equal to
      One-Month LIBOR plus the related Certificate Margin.

     

    With
      respect to the Class M-8 Certificates and, for purposes of the definition of
      “Marker Rate”, REMIC II Regular Interest M-8, a per annum rate equal to
      One-Month LIBOR plus the related Certificate Margin.

     

    With
      respect to the Class M-9 Certificates and, for purposes of the definition of
      “Marker Rate”, REMIC II Regular Interest M-9, a per annum rate equal to
      One-Month LIBOR plus the related Certificate Margin.

     

    With
      respect to the Class M-10 Certificates and, for purposes of the definition
      of
“Marker Rate”, REMIC II Regular Interest M-10, a per annum rate equal to
      One-Month LIBOR plus the related Certificate Margin.

     

    With
      respect to the Class M-11 Certificates and, for purposes of the definition
      of
“Marker Rate”, REMIC II Regular Interest M-11, 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 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 has
      been reduced to 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
      aggregate Stated 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).

     

    
      
        
        

      

      
        45

        
          

        

      

      
        
        

      

    

     

    “Overcollateralization
      Increase Amount”: With respect to any Distribution Date, the amount of Net
      Monthly Excess Cashflow actually applied as an accelerated payment of principal
      to the Class A Certificates and the Mezzanine 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 the
      Servicer in respect of any Determination Date pursuant to Section 5.03 of
      this 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 (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
      related One-Month LIBOR Pass-Through Rate for such Distribution Date and (ii)
      the related Net WAC Pass-Through Rate for such Distribution Date.

     

    With
      respect to the Class CE 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 (xix) below,
      and
      the denominator of which is the aggregate Uncertificated Balances of REMIC
      II
      Regular Interest AA, REMIC II Regular Interest A-1, REMIC II Regular Interest
      A-2A, REMIC II Regular Interest A-2B, REMIC II Regular Interest A-2C, REMIC
      II
      Regular Interest A-2D, REMIC II Regular Interest M-1, REMIC II Regular Interest
      M-2, REMIC II Regular Interest M-3, REMIC II Regular Interest M-4, REMIC II
      Regular Interest M-5, REMIC II Regular Interest M-6, REMIC II Regular Interest
      M-7, REMIC II Regular Interest M-8, REMIC II Regular Interest M-9, REMIC II
      Regular Interest M-10, REMIC II Regular Interest M-11 and REMIC II Regular
      Interest ZZ. For purposes of calculating the Pass-Through Rate for the Class
      CE
      Certificates, the numerator is equal to the sum of the following
      components:

    

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

       

      
        
          
          

        

        
          46

          
            

          

        

        
          
          

        

      

       

      (ii) the
        REMIC II Remittance Rate for REMIC II Regular Interest A-1 minus the Marker
        Rate, applied to an amount equal to the Uncertificated Balance of REMIC II
        Regular Interest A-1;

       

      (iii) the
        REMIC II Remittance Rate for REMIC II Regular Interest A-2A minus the Marker
        Rate, applied to an amount equal to the Uncertificated Balance of REMIC II
        Regular Interest A-2A;

       

      (iv) the
        REMIC II Remittance Rate for REMIC II Regular Interest A-2B minus the Marker
        Rate, applied to an amount equal to the Uncertificated Balance of REMIC II
        Regular Interest A-2B;

       

      (v) the
        REMIC II Remittance Rate for REMIC II Regular Interest A-2C minus the Marker
        Rate, applied to an amount equal to the Uncertificated Balance of REMIC II
        Regular Interest A-2C;

       

      (vi) the
        REMIC II Remittance Rate for REMIC II Regular Interest A-2D minus the Marker
        Rate, applied to an amount equal to the Uncertificated Balance of REMIC II
        Regular Interest A-2D;

       

      (vii) the
        REMIC II Remittance Rate for REMIC II Regular Interest M-1 minus the Marker
        Rate, applied to an amount equal to the Uncertificated Balance of REMIC II
        Regular Interest M-1;

       

      (viii) the
        REMIC II Remittance Rate for REMIC II Regular Interest M-2 minus the Marker
        Rate, applied to an amount equal to the Uncertificated Balance of REMIC II
        Regular Interest M-2;

       

      (ix) the
        REMIC II Remittance Rate for REMIC II Regular Interest M-3 minus the Marker
        Rate, applied to an amount equal to the Uncertificated Balance of REMIC II
        Regular Interest M-3;

       

      (x) the
        REMIC II Remittance Rate for REMIC II Regular Interest M-4 minus the Marker
        Rate, applied to an amount equal to the Uncertificated Balance of REMIC II
        Regular Interest M-4;

       

      (xi) the
        REMIC II Remittance Rate for REMIC II Regular Interest M-5 minus the Marker
        Rate, applied to an amount equal to the Uncertificated Balance of REMIC II
        Regular Interest M-5;

       

      (xii) the
        REMIC II Remittance Rate for REMIC II Regular Interest M-6 minus the Marker
        Rate, applied to an amount equal to the Uncertificated Balance of REMIC II
        Regular Interest M-6;

       

      (xiii) the
        REMIC II Remittance Rate for REMIC II Regular Interest M-7 minus the Marker
        Rate, applied to an amount equal to the Uncertificated Balance of REMIC II
        Regular Interest M-7;

       

      
        
          
          

        

        
          47

          
            

          

        

        
          
          

        

      

       

      (xiv) the
        REMIC II Remittance Rate for REMIC II Regular Interest M-8 minus the Marker
        Rate, applied to an amount equal to the Uncertificated Balance of REMIC II
        Regular Interest M-8;

       

      (xv) the
        REMIC II Remittance Rate for REMIC II Regular Interest M-9 minus the Marker
        Rate, applied to an amount equal to the Uncertificated Balance of REMIC II
        Regular Interest M-9;

       

      (xvi) the
        REMIC II Remittance Rate for REMIC II Regular Interest M-10 minus the Marker
        Rate, applied to an amount equal to the Uncertificated Balance of REMIC II
        Regular Interest M-10;

       

      (xvii) the
        REMIC II Remittance Rate for REMIC II Regular Interest M-11 minus the Marker
        Rate, applied to an amount equal to the Uncertificated Balance of REMIC II
        Regular Interest M-11;

       

      (xviii) the
        REMIC II Remittance Rate for REMIC II Regular Interest ZZ minus the Marker
        Rate,
        applied to an amount equal to the Uncertificated Balance of REMIC II Regular
        Interest ZZ; and

       

      (xix) 100%
        of the interest on REMIC II Regular Interest P.

       

    

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

     

    “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 Class A
      Certificates and the Mezzanine 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 Certificates are issuable only in minimum Percentage Interests
      corresponding to minimum initial Notional Balances 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
      Balance 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.

     

    
      
        
        

      

      
        48

        
          

        

      

      
        
        

      

    

     

    “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, the Servicer, 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 P-1 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;

       

      
        
          
          

        

        
          49

          
            

          

        

        
          
          

        

      

       

      (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 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 (a) the Adjustable Rate Mortgage Loans of
      100% PPC, which represents (i) a per annum prepayment rate of 5% of the then
      outstanding principal balance of the Adjustable Rate Mortgage Loans in the
      first
      month of the life of the Adjustable Rate Mortgage Loans, (ii) an additional
      2%
      per annum in each month thereafter through the eleventh month, (iii) building
      to
      a constant prepayment rate of 27% per annum beginning in the twelfth month
      and
      remaining constant until the twenty-third month, (iv) increasing to and
      remaining constant at a prepayment rate of 60% per annum beginning in the
      twenty-fourth month until the twenty-seventh month and (v) decreasing and
      remaining constant at a prepayment rate of 30% per annum from the twenty-eighth
      month and thereafter; provided, however, the prepayment rate will not exceed
      85%
      per annum in any period for any percentage of PPC; and (b) the fixed-rate
      Mortgage Loans of 100% PPC, which represents (i) a per annum prepayment rate
      of
      4% of the then outstanding principal balance of the fixed rate Mortgage Loans
      in
      the first month of the life of such Mortgage Loans, (ii) an additional 1.72727%
      per annum in each month thereafter through the eleventh month and (iii) a
      constant prepayment rate of 23% per annum beginning in the twelfth month and
      in
      each month thereafter during the life of the fixed rate Mortgage Loans;
      provided, however, the prepayment rate will not exceed 85% per annum in any
      period for any percentage of PPC. The Prepayment Assumption is used solely
      for
      determining the accrual of original issue discount on the Certificates for
      federal income tax purposes.

     

    
      
        
        

      

      
        50

        
          

        

      

      
        
        

      

    

     

    “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 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 Stated Principal Balance of the related Mortgage Loan; and

       

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

    

     

    “Prepayment
      Interest Excess”: With respect to each 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 the fifteenth (15th)
      day of
      the calendar month in which such Distribution Date occurs, an amount equal
      to
      interest (to the extent received) at the applicable Net Mortgage Rate on the
      amount of such Principal Prepayment for the number of days commencing on the
      first day of the calendar month in which such Distribution Date occurs and
      ending on the last date through which interest is collected from the related
      Mortgagor. The Servicer may withdraw such Prepayment Interest Excess from the
      Collection Account in accordance with Section 3.09(a)(x) of this Agreement.

     

    
      
        
        

      

      
        51

        
          

        

      

      
        
        

      

    

     

    “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 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 the Servicer 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.

     

    “Prepayment
      Period”: For any Distribution Date, the period beginning on the 16th day of the
      month preceding the month in which the related Distribution Date occurs (or
      with
      respect to the first Prepayment Period, the period commencing on the Cut-off
      Date) and ending on the 15th day of the month in which such Distribution Date
      occurs.

     

    “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 is the sum of the
      Group I Principal Distribution Amount and the Group II Principal Distribution
      Amount.

     

    “Principal
      Remittance Amount”: With respect to any Distribution Date is the sum of the
      Group I Principal Remittance Amount and the Group II Principal Remittance
      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 Servicer to the Trustee, an amount equal to the sum
      of
      (i) 100% of the Stated 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 Stated 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 the 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 Stated
      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 the 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 and (iv)
      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 the 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.

     

    
      
        
        

      

      
        52

        
          

        

      

      
        
        

      

    

     

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

     

    “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.

     

    
      
        
        

      

      
        53

        
          

        

      

      
        
        

      

    

     

    “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”: 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, or other comparable
      Persons, designated by the Depositor, notice of which designation shall be
      given
      to the Trustee and the Servicer.

     

    “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
      Servicer to the Master Servicer (in substantially the form of Schedule 4
      hereto), equal to (i) the unpaid principal balance of such Mortgage Loan as
      of
      the commencement of the calendar month in which the Final Recovery Determination
      was made, plus (ii) accrued interest from the Due Date as to which interest
      was
      last paid by the Mortgagor through the end of the calendar month in which such
      Final Recovery Determination was made, calculated in the case of each calendar
      month during such period (A) at an annual rate equal to the annual rate at
      which
      interest was then accruing on such Mortgage Loan and (B) on a principal amount
      equal to the Stated Principal Balance of such Mortgage Loan as of the close
      of
      business on the Distribution Date during such calendar month, plus (iii) any
      amounts previously withdrawn from the Collection Account in respect of such
      Mortgage Loan pursuant to Section 3.09(a)(ix) and Section 3.13(b) of
      this 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
      Servicer with respect to such Mortgage Loan pursuant to
      Section 3.09(a)(iii) of this 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 Stated Principal Balance of the related Mortgage Loan as
      of
      the close of business on the Distribution Date during such calendar month,
      plus
      (iii) REO Imputed Interest for such REO Property for each calendar month
      commencing with the calendar month in which such REO Property was acquired
      and
      ending with the calendar month in which such Final Recovery Determination was
      made, plus (iv) any amounts previously withdrawn from the Collection Account
      in
      respect of the related Mortgage Loan pursuant to Section 3.09(a)(ix) and
      Section 3.13(b) of this Agreement, 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 Servicer in
      respect of such REO Property or the related Mortgage Loan for which the Servicer
      has been or, in connection with such Final Recovery Determination, will be
      reimbursed pursuant to Section 3.21 of this 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.

     

    
      
        
        

      

      
        54

        
          

        

      

      
        
        

      

    

     

    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 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 Class A Certificates and
      the Mezzanine 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
      Certificate or Class P Certificate.

     

    
      
        
        

      

      
        55

        
          

        

      

      
        
        

      

    

     

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

     

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

     

    “Release
      Date”: The fortieth (40th) day after the later of (i) commencement of the
      offering of the Class M-10, Class M-11 or Class CE 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), and (v) the Collection 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 payments and other collections of principal and
      interest due on the Mortgage Loans on or before the Cut-off Date and all
      Prepayment Charges payable in connection with Principal Prepayments made before
      the Cut-off Date; (ii) the Reserve Fund and any amounts on deposit therein
      from
      time to time and any proceeds thereof; (iii) the Swap Agreement; (iv) the Cap
      Contracts; and (v) the Supplemental Interest Trust.

     

    
      
        
        

      

      
        56

        
          

        

      

      
        
        

      

    

     

    “REMIC
      I
      Group I Regular Interests”: REMIC I Regular Interest I and REMIC I Regular
      Interest I-1-A through REMIC I Regular Interest I-57-B as designated in the
      Preliminary Statement hereto.

     

    “REMIC
      I
      Group II Regular Interests”: REMIC I Regular Interest II and REMIC I Regular
      Interest II-1-A through REMIC I Regular Interest II-57-B as designated in the
      Preliminary Statement hereto.

     

    “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. 

     

    “REMIC
      I
      Remittance Rate”:
      With
      respect to REMIC I Regular Interest I, a per annum rate equal to the weighted
      average of the Net Mortgage Rates of the Group I Mortgage Loans. With respect
      to
      each REMIC I Group I Regular Interest ending with the designation “A”, a per
      annum rate equal to the weighted average of the Net Mortgage Rates of the Group
      I Mortgage Loans multiplied by 2, subject to a maximum rate of 10.408%. With
      respect to each REMIC I Group I Regular Interest ending with the designation
      “B”, the greater of (x) a per annum rate equal to the excess, if any, of (i) 2
      multiplied by the weighted average of the Net Mortgage Rates of the Group I
      Mortgage Loans over (ii) 10.408% and (y) 0.00%. With respect to REMIC I Regular
      Interest II, a per annum rate equal to the weighted average of the Net Mortgage
      Rates of the Group II Mortgage Loans. With respect to each REMIC I Group II
      Regular Interest ending with the designation “A”, a per annum rate equal to the
      weighted average of the Net Mortgage Rates of the Group II Mortgage Loans
      multiplied by 2, subject to a maximum rate of 10.408%. With respect to each
      REMIC I Group II Regular Interest ending with the designation “B”, the greater
      of (x) a per annum rate equal to the excess, if any, of (i) 2 multiplied by
      the
      weighted average of the Net Mortgage Rates of the Group II Mortgage Loans over
      (ii)10.408% and (y) 0.00%. 

     

    “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
      Regular Interests pursuant to Section 2.07, and all amounts deposited
      therein, with respect to which a separate REMIC election is to be
      made.

     

    “REMIC
      II
      Interest Loss Allocation Amount”: With respect to any Distribution Date, an
      amount equal to (a) the product of (i) 50% of the aggregate Stated Principal
      Balance of the Mortgage Loans and REO Properties then outstanding and (ii)
      the
      REMIC II Remittance Rate for REMIC II Regular Interest AA minus the Marker
      Rate,
      divided by (b) 12.

     

    
      
        
        

      

      
        57

        
          

        

      

      
        
        

      

    

     

    “REMIC
      II
      Marker Allocation Percentage”: 50% of any amount payable or loss attributable
      from the Mortgage Loans, which shall be allocated to REMIC II Regular Interest
      AA, REMIC II Regular Interest A-1, REMIC II Regular Interest A-2A, REMIC II
      Regular Interest A-2B, REMIC II Regular Interest A-2C, REMIC II Regular Interest
      A-2D, REMIC II Regular Interest M-1, REMIC II Regular Interest M-2, REMIC II
      Regular Interest M-3, REMIC II Regular Interest M-4, REMIC II Regular Interest
      M-5, REMIC II Regular Interest M-6, REMIC II Regular Interest M-7, REMIC II
      Regular Interest M-8, REMIC II Regular Interest M-9, REMIC II Regular Interest
      M-10, REMIC II Regular Interest M-11, REMIC II Regular Interest ZZ and REMIC
      II
      Regular Interest P.

     

    “REMIC
      II
      Overcollateralization Amount”: With respect to any date of determination, (i)
      0.50% of the aggregate Uncertificated Balances of the REMIC II Regular Interests
      (other than REMIC II Regular Interest P) minus (ii) the aggregate of the
      Uncertificated Balances of REMIC II Regular Interest A-1, REMIC II Regular
      Interest A-2A, REMIC II Regular Interest A-2B, REMIC II Regular Interest A-2C,
      REMIC II Regular Interest A-2D, REMIC II Regular Interest M-1, REMIC II Regular
      Interest M-2, REMIC II Regular Interest M-3, REMIC II Regular Interest M-4,
      REMIC II Regular Interest M-5, REMIC II Regular Interest M-6, REMIC II Regular
      Interest M-7, REMIC II Regular Interest M-8, REMIC II Regular Interest M-9,
      REMIC II Regular Interest M-10 and REMIC II Regular Interest M-11, in each
      case
      as of such date of determination.

     

    “REMIC
      II
      Principal Loss Allocation Amount”: With respect to any Distribution Date, an
      amount equal to (a) the product of (i) 50% of the aggregate Stated 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 II Regular Interest A-1, REMIC II Regular
      Interest A-2A, REMIC II Regular Interest A-2B, REMIC II Regular Interest A-2C,
      REMIC II Regular Interest A-2D, REMIC II Regular Interest M-1, REMIC II Regular
      Interest M-2, REMIC II Regular Interest M-3, REMIC II Regular Interest M-4,
      REMIC II Regular Interest M-5, REMIC II Regular Interest M-6, REMIC II Regular
      Interest M-7, REMIC II Regular Interest M-8, REMIC II Regular Interest M-9,
      REMIC II Regular Interest M-10, REMIC II Regular Interest M-11 and the
      denominator of which is the aggregate of the Uncertificated Balances of REMIC
      II
      Regular Interest A-1, REMIC II Regular Interest A-2A, REMIC II Regular Interest
      A-2B, REMIC II Regular Interest A-2C, REMIC II Regular Interest A-2D, REMIC
      II
      Regular Interest M-1, REMIC II Regular Interest M-2, REMIC II Regular Interest
      M-3, REMIC II Regular Interest M-4, REMIC II Regular Interest M-5, REMIC II
      Regular Interest M-6, REMIC II Regular Interest M-7, REMIC II Regular Interest
      M-8, REMIC II Regular Interest M-9, REMIC II Regular Interest M-10, REMIC II
      Regular Interest M-11 and REMIC II Regular Interest ZZ.

     

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

     

    
      
        
        

      

      
        58

        
          

        

      

      
        
        

      

    

     

    “REMIC
      II
      Regular Interest AA”: One of the separate non-certificated beneficial ownership
      interests in REMIC II issued hereunder and designated as a Regular Interest
      in
      REMIC II. REMIC II Regular Interest AA shall accrue interest at the related
      REMIC II 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
      II
      Regular Interest A-1”: One of the separate non-certificated beneficial ownership
      interests in REMIC II issued hereunder and designated as a Regular Interest
      in
      REMIC II. REMIC II Regular Interest A-1 shall accrue interest at the related
      REMIC II 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
      II
      Regular Interest A-2A”: One of the separate non-certificated beneficial
      ownership interests in REMIC II issued hereunder and designated as a Regular
      Interest in REMIC II. REMIC II Regular Interest A-2A shall accrue interest
      at
      the related REMIC II 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
      II
      Regular Interest A-2B”: One of the separate non-certificated beneficial
      ownership interests in REMIC II issued hereunder and designated as a Regular
      Interest in REMIC II. REMIC II Regular Interest A-2B shall accrue interest
      at
      the related REMIC II 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
      II
      Regular Interest A-2C”: One of the separate non-certificated beneficial
      ownership interests in REMIC II issued hereunder and designated as a Regular
      Interest in REMIC II. REMIC II Regular Interest A-2C shall accrue interest
      at
      the related REMIC II 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
      II
      Regular Interest A-2D”: One of the separate non-certificated beneficial
      ownership interests in REMIC II issued hereunder and designated as a Regular
      Interest in REMIC II. REMIC II Regular Interest A-2D shall accrue interest
      at
      the related REMIC II 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
      II
      Regular Interest IO”: One of the separate non-certificated beneficial ownership
      interests in REMIC II issued hereunder and designated as a Regular Interest
      in
      REMIC II. REMIC II Regular Interest IO shall accrue interest at the related
      REMIC II Remittance Rate in effect from time to time and shall not be entitled
      to distributions of principal. 

     

    
      
        
        

      

      
        59

        
          

        

      

      
        
        

      

    

     

    “REMIC
      II
      Regular Interest M-1”: One of the separate non-certificated beneficial ownership
      interests in REMIC II issued hereunder and designated as a Regular Interest
      in
      REMIC II. REMIC II Regular Interest M-1 shall accrue interest at the related
      REMIC II 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
      II
      Regular Interest M-2”: One of the separate non-certificated beneficial ownership
      interests in REMIC II issued hereunder and designated as a Regular Interest
      in
      REMIC II. REMIC II Regular Interest M-2 shall accrue interest at the related
      REMIC II 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
      II
      Regular Interest M-3”: One of the separate non-certificated beneficial ownership
      interests in REMIC II issued hereunder and designated as a Regular Interest
      in
      REMIC II. REMIC II Regular Interest M-3 shall accrue interest at the related
      REMIC II 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
      II
      Regular Interest M-4”: One of the separate non-certificated beneficial ownership
      interests in REMIC II issued hereunder and designated as a Regular Interest
      in
      REMIC II. REMIC II Regular Interest M-4 shall accrue interest at the related
      REMIC II 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
      II
      Regular Interest M-5”: One of the separate non-certificated beneficial ownership
      interests in REMIC II issued hereunder and designated as a Regular Interest
      in
      REMIC II. REMIC II Regular Interest M-5 shall accrue interest at the related
      REMIC II 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
      II
      Regular Interest M-6”: One of the separate non-certificated beneficial ownership
      interests in REMIC II issued hereunder and designated as a Regular Interest
      in
      REMIC II. REMIC II Regular Interest M-6 shall accrue interest at the related
      REMIC II 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
      II
      Regular Interest M-7”: One of the separate non-certificated beneficial ownership
      interests in REMIC II issued hereunder and designated as a Regular Interest
      in
      REMIC II. REMIC II Regular Interest M-7 shall accrue interest at the related
      REMIC II 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.

     

    
      
        
        

      

      
        60

        
          

        

      

      
        
        

      

    

     

    “REMIC
      II
      Regular Interest M-8”: One of the separate non-certificated beneficial ownership
      interests in REMIC II issued hereunder and designated as a Regular Interest
      in
      REMIC II. REMIC II Regular Interest M-8 shall accrue interest at the related
      REMIC II 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
      II
      Regular Interest M-9”: One of the separate non-certificated beneficial ownership
      interests in REMIC II issued hereunder and designated as a Regular Interest
      in
      REMIC II. REMIC II Regular Interest M-9 shall accrue interest at the related
      REMIC II 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
      II
      Regular Interest M-10”: One of the separate non-certificated beneficial
      ownership interests in REMIC II issued hereunder and designated as a Regular
      Interest in REMIC II. REMIC II Regular Interest M-10 shall accrue interest
      at
      the related REMIC II 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
      II
      Regular Interest M-11”: One of the separate non-certificated beneficial
      ownership interests in REMIC II issued hereunder and designated as a Regular
      Interest in REMIC II. REMIC II Regular Interest M-11 shall accrue interest
      at
      the related REMIC II 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
      II
      Regular Interest P”: One of the separate non-certificated beneficial ownership
      interests in REMIC II issued hereunder and designated as a Regular Interest
      in
      REMIC II. REMIC II Regular Interest P shall accrue interest at the related
      REMIC
      II 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
      II
      Regular Interest XX”: One of the separate non-certificated beneficial ownership
      interests in REMIC II issued hereunder and designated as a Regular Interest
      in
      REMIC II. REMIC II Regular Interest XX shall accrue interest at the related
      REMIC II 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
      II
      Regular Interest ZZ”: One of the separate non-certificated beneficial ownership
      interests in REMIC II issued hereunder and designated as a Regular Interest
      in
      REMIC II. REMIC II Regular Interest ZZ shall accrue interest at the related
      REMIC II 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.

     

    
      
        
        

      

      
        61

        
          

        

      

      
        
        

      

    

     

    “REMIC
      II
      Regular Interest I-SUB”: One of the separate non-certificated beneficial
      ownership interests in REMIC II issued hereunder and designated as a Regular
      Interest in REMIC II. REMIC II Regular Interest I-SUB shall accrue interest
      at
      the related REMIC II 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
      II
      Regular Interest I-GRP”: One of the separate non-certificated beneficial
      ownership interests in REMIC II issued hereunder and designated as a Regular
      Interest in REMIC II. REMIC II Regular Interest I-GRP shall accrue interest
      at
      the related REMIC II 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
      II
      Regular Interest II-SUB”: One of the separate non-certificated beneficial
      ownership interests in REMIC II issued hereunder and designated as a Regular
      Interest in REMIC II. REMIC II Regular Interest II-SUB shall accrue interest
      at
      the related REMIC II 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
      II
      Regular Interest II-GRP”: One of the separate non-certificated beneficial
      ownership interests in REMIC II issued hereunder and designated as a Regular
      Interest in REMIC II. REMIC II Regular Interest II-GRP shall accrue interest
      at
      the related REMIC II 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
      II
      Remittance Rate”: With respect to REMIC II Regular Interest AA, REMIC II Regular
      Interest A-1, REMIC II Regular Interest A-2A, REMIC II Regular Interest A-2B,
      REMIC II Regular Interest A-2C, REMIC II Regular Interest A-2D, REMIC II Regular
      Interest M-1, REMIC II Regular Interest M-2, REMIC II Regular Interest M-3,
      REMIC II Regular Interest M-4, REMIC II Regular Interest M-5, REMIC II Regular
      Interest M-6, REMIC II Regular Interest M-7, REMIC II Regular Interest M-8,
      REMIC II Regular Interest M-9, REMIC II Regular Interest M-10, REMIC II Regular
      Interest M-11, REMIC II Regular Interest P, REMIC II Regular Interest ZZ, REMIC
      II Regular Interest I-SUB, REMIC II Regular Interest II-SUB and REMIC II Regular
      Interest XX, a per annum rate (but not less than zero) equal to the weighted
      average of: (w) with respect to REMIC I Regular Interest I and REMIC I Regular
      Interest II, the REMIC I Remittance Rate for each such REMIC I Regular Interest
      for each such Distribution Date, (x) with respect to each REMIC I Regular
      Interest ending with the designation “B”, the weighted average of the REMIC I
      Remittance Rates for such REMIC I Regular Interests, weighted on the basis
      of
      the Uncertificated Balances of such REMIC I Regular Interests for each such
      Distribution Date and (y) with respect to REMIC I Regular Interests ending
      with
      the designation “A”, for each Distribution Date listed below, the weighted
      average of the rates listed below for each such REMIC I Regular Interest listed
      below, weighted on the basis of the Uncertificated Balances of each such REMIC
      I
      Regular Interest for each such Distribution Date:

     

    
      
        
        

      

      
        62

        
          

        

      

      
        
        

      

    

    

    
      	
              Distribution
                Date

            	 	
              REMIC
                I Regular Interest

            	 	
              Rate

            
	
              1st
                through 6th

            	 	
              I-1-A
                through I-57-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	
              II-1-A
                through II-57-A

            	 	
              REMIC
                I Remittance Rate

            
	
              7

            	 	
              I-1-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-1-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	
              8

            	 	
              I-2-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-2-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate REMIC I Remittance
                Rate

            
	 	 	
              I-1-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	
              II-1-A

            	 	
              REMIC
                I Remittance Rate

            
	
              9

            	 	
              I-3-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-3-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                and I-2-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	
              II-1-A
                and II-2-A

            	 	
              REMIC
                I Remittance Rate

            
	
              10

            	 	
              I-4-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-4-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-3-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	
              II-1-A
                through II-3-A

            	 	
              REMIC
                I Remittance Rate

            
	
              11

            	 	
              I-5-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-5-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-4-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	
              II-1-A
                through II-4-A

            	 	
              REMIC
                I Remittance Rate

            
	
              12

            	 	
              I-6-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-6-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-5-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	
              II-1-A
                through II-5-A

            	 	
              REMIC
                I Remittance Rate

            
	
              13

            	 	
              I-7-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-7-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-6-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	
              II-1-A
                through II-6-A

            	 	
              REMIC
                I Remittance Rate

            
	
              14

            	 	
              I-8-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-8-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-7-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	
              II-1-A
                through II-7-A

            	 	
              REMIC
                I Remittance Rate

            
	
              15

            	 	
              I-9-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-9-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-8-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	
              II-1-A
                through II-8-A

            	 	
              REMIC
                I Remittance Rate

            

    

     

    
      
        
        

      

      
        63

        
          

        

      

      
        
        

      

    

     

    
      	
              Distribution
                Date

            	 	
              REMIC
                I Regular Interest

            	 	
              Rate

            

    

    
      	
              16

            	 	
              I-10-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-10-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-9-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	
              II-1-A
                through II-9-A

            	 	
              REMIC
                I Remittance Rate

            
	
              17

            	 	
              I-11-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-11-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-10-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	
              II-1-A
                through II-10-A

            	 	
              REMIC
                I Remittance Rate

            
	
              18

            	 	
              I-12-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-12-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-11-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	
              II-1-A
                through II-11-A

            	 	
              REMIC
                I Remittance Rate

            
	
              19

            	 	
              I-13-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-13-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-12-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	
              II-1-A
                through II-12-A

            	 	
              REMIC
                I Remittance Rate

            
	
              20

            	 	
              I-14-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-14-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-13-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	
              II-1-A
                through II-13-A

            	 	
              REMIC
                I Remittance Rate

            
	
              21

            	 	
              I-15-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-15-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-14-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	
              II-1-A
                through II-14-A

            	 	
              REMIC
                I Remittance Rate

            
	
              22

            	 	
              I-16-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-16-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-15-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	
              II-1-A
                through II-15-A

            	 	
              REMIC
                I Remittance Rate

            
	
              23

            	 	
              I-17-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-17-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-16-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	
              II-1-A
                through II-16-A

            	 	
              REMIC
                I Remittance Rate

            
	
              24

            	 	
              I-18-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-18-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-17-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	
              II-1-A
                through II-17-A

            	 	
              REMIC
                I Remittance Rate

            
	
              25

            	 	
              I-19-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-19-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-18-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	
              II-1-A
                through II-18-A

            	 	
              REMIC
                I Remittance Rate

            
	
              26

            	 	
              I-20-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-20-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-19-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	
              II-1-A
                through II-19-A

            	 	
              REMIC
                I Remittance Rate

            

    

     

    
      
        
        

      

      
        64

        
          

        

      

      
        
        

      

    

     

     

    
      	
              Distribution
                Date

            	 	
              REMIC
                I Regular Interest

            	 	
              Rate

            

    

    
      	
              27

            	 	
              I-21-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-21-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-20-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	
              II-1-A
                through II-20-A

            	 	
              REMIC
                I Remittance Rate

            
	
              28

            	 	
              I-22-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-22-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-21-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	
              II-1-A
                through II-21-A

            	 	
              REMIC
                I Remittance Rate

            
	
              29

            	 	
              I-23-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-23-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-22-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	
              II-1-A
                through II-22-A

            	 	
              REMIC
                I Remittance Rate

            
	
              30

            	 	
              I-24-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-24-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-23-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	
              II-1-A
                through II-23-A

            	 	
              REMIC
                I Remittance Rate

            
	
              31

            	 	
              I-25-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-25-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-24-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	
              II-1-A
                through II-24-A

            	 	
              REMIC
                I Remittance Rate

            
	
              32

            	 	
              I-26-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-26-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-25-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	
              II-1-A
                through II-25-A

            	 	
              REMIC
                I Remittance Rate

            
	
              33

            	 	
              I-27-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-27-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-26-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	
              II-1-A
                through II-26-A

            	 	
              REMIC
                I Remittance Rate

            
	
              34

            	 	
              I-28-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-28-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-27-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	
              II-1-A
                through II-27-A

            	 	
              REMIC
                I Remittance Rate

            
	
              35

            	 	
              I-29-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-29-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-28-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	
              II-1-A
                through II-28-A

            	 	
              REMIC
                I Remittance Rate

            
	
              36

            	 	
              I-30-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-30-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-29-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	
              II-1-A
                through II-29-A

            	 	
              REMIC
                I Remittance Rate

            
	
              37

            	 	
              I-31-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-31-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-30-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	
              II-1-A
                through II-30-A

            	 	
              REMIC
                I Remittance Rate

            

    

     

    
      
        
        

      

      
        65

        
          

        

      

      
        
        

      

    

     

    
      	
              Distribution
                Date

            	 	
              REMIC
                I Regular Interest

            	 	
              Rate

            

    

    
      	
              38

            	 	
              I-32-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-32-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-31-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	
              II-1-A
                through II-31-A

            	 	
              REMIC
                I Remittance Rate

            
	
              39

            	 	
              I-33-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-33-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-32-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	
              II-1-A
                through II-32-A

            	 	
              REMIC
                I Remittance Rate

            
	
              40

            	 	
              I-34-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-34-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-33-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	
              II-1-A
                through II-33-A

            	 	
              REMIC
                I Remittance Rate

            
	
              41

            	 	
              I-35-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-35-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-34-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	
              II-1-A
                through II-34-A

            	 	
              REMIC
                I Remittance Rate

            
	
              42

            	 	
              I-36-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-36-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-35-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	
              II-1-A
                through II-35-A

            	 	
              REMIC
                I Remittance Rate

            
	
              43

            	 	
              I-37-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-37-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-36-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	
              II-1-A
                through II-36-A

            	 	
              REMIC
                I Remittance Rate

            
	
              44

            	 	
              I-38-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-38-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-37-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	
              II-1-A
                through II-37-A

            	 	
              REMIC
                I Remittance Rate

            
	
              45

            	 	
              I-39-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-39-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-38-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	
              II-1-A
                through II-38-A

            	 	
              REMIC
                I Remittance Rate

            
	
              46

            	 	
              I-40-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-40-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-39-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	
              II-1-A
                through II-39-A

            	 	
              REMIC
                I Remittance Rate

            
	
              47

            	 	
              I-41-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-41-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-40-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	
              II-1-A
                through II-40-A

            	 	
              REMIC
                I Remittance Rate

            
	
              48

            	 	
              I-42-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-42-A
                through II-41-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-41-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	
              II-1-A
                through II-21-A

            	 	
              REMIC
                I Remittance Rate

            

    

     

    
      
        
        

      

      
        66

        
          

        

      

      
        
        

      

    

     

     

    
      	
              Distribution
                Date

            	 	
              REMIC
                I Regular Interest

            	 	
              Rate

            

    

    
      	
              49

            	 	
              I-43-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-43-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-42-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	
              II-1-A
                through II-42-A

            	 	
              REMIC
                I Remittance Rate

            
	
              50

            	 	
              I-44-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-44-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-43-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	
              II-1-A
                through II-43-A

            	 	
              REMIC
                I Remittance Rate

            
	
              51

            	 	
              I-45-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-45-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-44-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	
              II-1-A
                through II-44-A

            	 	
              REMIC
                I Remittance Rate

            
	
              52

            	 	
              I-46-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-46-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-45-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	
              II-1-A
                through II-45-A

            	 	
              REMIC
                I Remittance Rate

            
	
              53

            	 	
              I-47-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-47-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-46-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	
              II-1-A
                through II-46-A

            	 	
              REMIC
                I Remittance Rate

            
	
              54

            	 	
              I-48-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-48-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-47-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	
              II-1-A
                through II-47-A

            	 	
              REMIC
                I Remittance Rate

            
	
              55

            	 	
              I-49-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-49-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-48-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	
              II-1-A
                through II-48-A

            	 	
              REMIC
                I Remittance Rate

            
	
              56

            	 	
              I-50-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-50-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-49-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	
              II-1-A
                through II-49-A

            	 	
              REMIC
                I Remittance Rate

            
	
              57

            	 	
              I-51-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-51-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-50-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	
              II-1-A
                through II-50-A

            	 	
              REMIC
                I Remittance Rate

            
	
              58

            	 	
              I-52-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-52-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-51-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	
              II-1-A
                through II-51-A

            	 	
              REMIC
                I Remittance Rate

            
	
              59

            	 	
              I-53-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-53-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-52-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	
              II-1-A
                through II-52-A

            	 	
              REMIC
                I Remittance Rate

            

    

     

    
      
        
        

      

      
        67

        
          

        

      

      
        
        

      

    

     

    
      	
              Distribution
                Date

            	 	
              REMIC
                I Regular Interest

            	 	
              Rate

            

    

    
      	
              60

            	 	
              I-54-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-54-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-53-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	
              II-1-A
                through II-53-A

            	 	
              REMIC
                I Remittance Rate

            
	
              61

            	 	
              I-55-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-55-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-54-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	
              II-1-A
                through II-54-A

            	 	
              REMIC
                I Remittance Rate

            
	
              62

            	 	
              I-56-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-56-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-55-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	
              II-1-A
                through II-55-A

            	 	
              REMIC
                I Remittance Rate

            
	
              63

            	 	
              I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-56-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	
              II-1-A
                through II-56-A

            	 	
              REMIC
                I Remittance Rate

            
	
              thereafter

            	 	
              I-1-A
                through I-57-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	
              II-1-A
                through II-57-A

            	 	
              REMIC
                I Remittance Rate

            

    

    

    With
      respect to REMIC II Regular Interest I-GRP, a per annum rate (but not less
      than
      zero) equal to the weighted average of: (w) with respect to REMIC I Regular
      Interest I, the REMIC I Remittance Rate for such REMIC I Regular Interest for
      each such Distribution Date, (x) with respect to REMIC I Group I Regular
      Interests ending with the designation “B”, the weighted average of the REMIC I
      Remittance Rates for such REMIC I Regular Interests, weighted on the basis
      of
      the Uncertificated Balances of each such REMIC I Regular Interest for each
      such
      Distribution Date and (y) with respect to REMIC I Group I Regular Interests
      ending with the designation “A”, for each Distribution Date listed below, the
      weighted average of the rates listed below for such REMIC I Regular Interests
      listed below, weighted on the basis of the Uncertificated Balances of each
      such
      REMIC I Regular Interest for each such Distribution Date:

     

    
      	
              Distribution
                Date

            	 	
              REMIC
                I Regular Interest

            	 	
              Rate

            
	
              1st
                through 6th 

            	 	
              I-1-A
                through I-57-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              7

            	 	
              I-1-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	 	 	 
	
              8

            	 	
              I-2-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              9

            	 	
              I-3-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                and I-2-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              10

            	 	
              I-4-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-3-A

            	 	
              REMIC
                I Remittance Rate

            

    

     

    
      
        
        

      

      
        68

        
          

        

      

      
        
        

      

    

     

    
      	
              Distribution
                Date

            	 	
              REMIC
                I Regular Interest

            	 	
              Rate

            

    

    
      	
              11

            	 	
              I-5-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-4-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              12

            	 	
              I-6-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-5-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              13

            	 	
              I-7-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-6-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              14

            	 	
              I-8-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-7-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              15

            	 	
              I-9-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-8-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              16

            	 	
              I-10-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-9-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              17

            	 	
              I-11-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-10-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              18

            	 	
              I-12-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-11-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              19

            	 	
              I-13-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-12-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              20

            	 	
              I-14-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-13-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              21

            	 	
              I-15-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-14-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              22

            	 	
              I-16-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-15-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              23

            	 	
              I-17-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-16-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              24

            	 	
              I-18-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-17-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              25

            	 	
              I-19-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-18-A

            	 	
              REMIC
                I Remittance Rate

            

    

     

    
      
        
        

      

      
        69

        
          

        

      

      
        
        

      

    

     

    
      	
              Distribution
                Date

            	 	
              REMIC
                I Regular Interest

            	 	
              Rate

            

    

    
      	
              26

            	 	
              I-20-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-19-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              27

            	 	
              I-21-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-20-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              28

            	 	
              I-22-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-21-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              29

            	 	
              I-23-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-22-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              30

            	 	
              I-24-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-23-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              31

            	 	
              I-25-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-24-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              32

            	 	
              I-26-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-25-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              33

            	 	
              I-27-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-26-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              34

            	 	
              I-28-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-27-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              35

            	 	
              I-29-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-28-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              36

            	 	
              I-30-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-29-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              37

            	 	
              I-31-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-30-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              38

            	 	
              I-32-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-31-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              39

            	 	
              I-33-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-32-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              40

            	 	
              I-34-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-33-A

            	 	
              REMIC
                I Remittance Rate

            

    

     

    
      
        
        

      

      
        70

        
          

        

      

      
        
        

      

    

     

    
      	
              Distribution
                Date

            	 	
              REMIC
                I Regular Interest

            	 	
              Rate

            

    

    
      	
              41

            	 	
              I-35-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-34-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              42

            	 	
              I-36-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-35-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              43

            	 	
              I-37-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-36-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              44

            	 	
              I-38-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-37-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              45

            	 	
              I-39-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-38-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              46

            	 	
              I-40-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-39-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              47

            	 	
              I-41-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-40-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              48

            	 	
              I-42-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-41-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              59

            	 	
              I-43-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-42-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              50

            	 	
              I-44-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-43-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              51

            	 	
              I-45-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-44-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              52

            	 	
              I-46-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-45-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              53

            	 	
              I-47-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-46-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              54

            	 	
              I-48-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-47-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              55

            	 	
              I-49-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-48-A

            	 	
              REMIC
                I Remittance Rate

            

    

     

    
      
        
        

      

      
        71

        
          

        

      

      
        
        

      

    

     

    
      	
              Distribution
                Date

            	 	
              REMIC
                I Regular Interest

            	 	
              Rate

            

    

    
      	
              56

            	 	
              I-50-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-49-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              57

            	 	
              I-51-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-50-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              58

            	 	
              I-52-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-51-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              59

            	 	
              I-53-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-52-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              60

            	 	
              I-54-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-53-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              61

            	 	
              I-55-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-54-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              62

            	 	
              I-56-A
                through I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-55-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              63

            	 	
              I-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              I-1-A
                through I-56-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              thereafter

            	 	
              I-1-A
                through I-57-A

            	 	
              REMIC
                I Remittance Rate

            

    

    

    With
      respect to REMIC II Regular Interest II-GRP, a per annum rate (but not less
      than
      zero) equal to the weighted average of: (w) with respect to REMIC I Regular
      Interest II, the REMIC I Remittance Rate for such REMIC I Regular Interest
      for
      each such Distribution Date, (x) with respect to REMIC I Group II Regular
      Interests ending with the designation “B”, the weighted average of the REMIC I
      Remittance Rates for such REMIC I Regular Interests, weighted on the basis
      of
      the Uncertificated Balances of each such REMIC I Regular Interest for each
      such
      Distribution Date and (y) with respect to REMIC I Group II Regular Interests
      ending with the designation “A”, for each Distribution Date listed below, the
      weighted average of the rates listed below for such REMIC I Regular Interests
      listed below, weighted on the basis of the Uncertificated Balances of each
      such
      REMIC I Regular Interest for each such Distribution Date:

     

    
      	
              Distribution
                Date

            	 	
              REMIC
                I Regular Interest

            	 	
              Rate

            
	
              1st
                through 6th 

            	 	
              II-1-A
                through II-57-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              7

            	 	
              II-1-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	 	 	 
	
              8

            	 	
              II-2-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-1-A

            	 	
              REMIC
                I Remittance Rate

            

    

     

    
      
        
        

      

      
        72

        
          

        

      

      
        
        

      

    

     

    
      	
              Distribution
                Date

            	 	
              REMIC
                I Regular Interest

            	 	
              Rate

            

    

    
      	
              9

            	 	
              II-3-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-1-A
                and II-2-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              10

            	 	
              II-4-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-1-A
                through II-3-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              11

            	 	
              II-5-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-1-A
                through II-4-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              12

            	 	
              II-6-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-1-A
                through II-5-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              13

            	 	
              II-7-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-1-A
                through II-6-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              14

            	 	
              II-8-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-1-A
                through II-7-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              15

            	 	
              II-9-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-1-A
                through II-8-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              16

            	 	
              II-10-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-1-A
                through II-9-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              17

            	 	
              II-11-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-1-A
                through II-10-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              18

            	 	
              II-12-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-1-A
                through II-11-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              19

            	 	
              II-13-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-1-A
                through II-12-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              20

            	 	
              II-14-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-1-A
                through II-13-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              21

            	 	
              II-15-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-1-A
                through II-14-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              22

            	 	
              II-16-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-1-A
                through II-15-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              23

            	 	
              II-17-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-1-A
                through II-16-A

            	 	
              REMIC
                I Remittance Rate

            

    

     

    
      
        
        

      

      
        73

        
          

        

      

      
        
        

      

    

     

    
      	
              Distribution
                Date

            	 	
              REMIC
                I Regular Interest

            	 	
              Rate

            

    

    
      	
              24

            	 	
              II-18-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-1-A
                through II-17-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              25

            	 	
              II-19-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-1-A
                through II-18-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              26

            	 	
              II-20-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-1-A
                through II-19-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              27

            	 	
              II-21-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-1-A
                through II-20-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              28

            	 	
              II-22-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-1-A
                through II-21-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              29

            	 	
              II-23-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-1-A
                through II-22-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              30

            	 	
              II-24-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-1-A
                through II-23-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              31

            	 	
              II-25-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-1-A
                through II-24-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              32

            	 	
              II-26-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-1-A
                through II-25-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              33

            	 	
              II-27-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-1-A
                through II-26-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              34

            	 	
              II-28-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-1-A
                through II-27-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              35

            	 	
              II-29-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-1-A
                through II-28-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              36

            	 	
              II-30-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-1-A
                through II-29-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              37

            	 	
              II-31-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-1-A
                through II-30-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              38

            	 	
              II-32-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-1-A
                through II-31-A

            	 	
              REMIC
                I Remittance Rate

            

    

     

    
      
        
        

      

      
        74

        
          

        

      

      
        
        

      

    

     

    
      	
              Distribution
                Date

            	 	
              REMIC
                I Regular Interest

            	 	
              Rate

            

    

    
      	
              39

            	 	
              II-33-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-1-A
                through II-32-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              40

            	 	
              II-34-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-1-A
                through II-33-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              41

            	 	
              II-35-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-1-A
                through II-34-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              42

            	 	
              II-36-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-1-A
                through II-35-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              43

            	 	
              II-37-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-1-A
                through II-36-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              44

            	 	
              II-38-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-1-A
                through II-37-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              45

            	 	
              II-39-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-1-A
                through II-38-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              46

            	 	
              II-40-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-1-A
                through II-39-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              47

            	 	
              II-41-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-1-A
                through II-40-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              48

            	 	
              II-42-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-1-A
                through II-41-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              59

            	 	
              II-43-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-1-A
                through II-42-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              50

            	 	
              II-44-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-1-A
                through II-43-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              51

            	 	
              II-45-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-1-A
                through II-44-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              52

            	 	
              II-46-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-1-A
                through II-45-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              53

            	 	
              II-47-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-1-A
                through II-46-A

            	 	
              REMIC
                I Remittance Rate

            

    

     

    
      
        
        

      

      
        75

        
          

        

      

      
        
        

      

    

     

    
      	
              Distribution
                Date

            	 	
              REMIC
                I Regular Interest

            	 	
              Rate

            

    

    
      	
              54

            	 	
              II-48-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-1-A
                through II-47-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              55

            	 	
              II-49-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-1-A
                through II-48-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              56

            	 	
              II-50-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-1-A
                through II-49-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              57

            	 	
              II-51-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-1-A
                through II-50-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              58

            	 	
              II-52-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-1-A
                through II-51-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              59

            	 	
              II-53-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-1-A
                through II-52-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              60

            	 	
              II-54-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-1-A
                through II-53-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              61

            	 	
              II-55-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-1-A
                through II-54-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              62

            	 	
              II-56-A
                through II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-1-A
                through II-55-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              63

            	 	
              II-57-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of REMIC I Remittance
                Rate

            
	 	 	
              II-1-A
                through II-56-A

            	 	
              REMIC
                I Remittance Rate

            
	 	 	 	 	 
	
              thereafter

            	 	
              II-1-A
                through II-57-A

            	 	
              REMIC
                I Remittance Rate

            

    

    

    With
      respect to REMIC II Regular Interest IO, and (i) the 1st Distribution Date
      through the 6th Distribution Date, the excess of (x) the weighted average of
      the
      REMIC I Remittance Rates for REMIC I Regular Interests including the designation
      “A”, over (y) the weighted average of the REMIC I Remittance Rates for REMIC I
      Regular Interests including the designation “A”, (ii) the 7th Distribution Date
      through the 46th Distribution Date, the excess of (x) the weighted average
      of
      the REMIC I Remittance Rates for REMIC I Regular Interests including the
      designation “A”, over (y) 2 multiplied by Swap LIBOR and (iii) thereafter,
      0.00%. With respect to REMIC II Regular Interest P, 0.00%.

     

    “REMIC
      II
      Sub WAC Allocation Percentage”: 50% of any amount payable or loss attributable
      from the Mortgage Loans, which shall be allocated to REMIC II Regular Interest
      I-SUB, REMIC II Regular Interest I-GRP, REMIC II Regular Interest II-SUB, REMIC
      II Regular Interest II-GRP and REMIC II Regular Interest XX.

     

    
      
        
        

      

      
        76

        
          

        

      

      
        
        

      

    

     

    “REMIC
      II
      Subordinated Balance Ratio”: The ratio among the Uncertificated Balances of each
      REMIC II Regular Interest ending with the designation “SUB,”, equal to the ratio
      between, with respect to each such REMIC II Regular Interest, the excess of
      (x)
      the aggregate Stated Principal Balance of the Group I Mortgage Loans or Group
      II
      Mortgage Loans, as applicable over (y) the current Certificate Principal Balance
      of related Class A Certificates.

     

    “REMIC
      II
      Required Overcollateralization Amount”: 0.50% of the Required
      Overcollateralization Amount.

     

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

     

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

     

    “REMIC
      III Certificateholder”: The Holder of any REMIC III 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.

     

    “REMIC
      Regular Interest”: Any REMIC I Regular Interest or REMIC II Regular
      Interest.

     

    “REMIC
      Remittance Rate”: The REMIC I Remittance Rate or the REMIC II Remittance
      Rate.

     

    “Remittance
      Report”: A report by the Servicer pursuant to Section 5.03(a) of this
      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 the
      Servicer in respect of an REO Property pursuant to Section 3.21 of this
      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 Stated Principal Balance of such REO
      Property (or, in the case of the first such calendar month, of the related
      Mortgage Loan, if appropriate) as of the close of business on the Distribution
      Date in such calendar month.

     

    
      
        
        

      

      
        77

        
          

        

      

      
        
        

      

    

     

    “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 the Servicer
      pursuant to Section 3.21(d) of this 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 the 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.

     

    “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) 1.80% and (B) the aggregate 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 (x)
      3.60% of the aggregate Stated Principal Balance of the Mortgage Loans as of
      the
      last day of the related Due Period and (y) an amount equal to the product of
      (A)
      0.50% and (B) the aggregate 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 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 manufactured home or (v) a
      detached one-family dwelling in a planned unit development, none of which is
      a
      co-operative or mobile home.

     

    
      
        
        

      

      
        78

        
          

        

      

      
        
        

      

    

     

    “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(c).

     

    “S&P”:
      Standard and Poor’s, 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,
      net of the principal portion of all unpaid Monthly Payments, if any, due on
      or
      before such date; (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 Scheduled 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) all Principal Prepayments
      received before such Due Date but after the Cut-off Date, (iii) 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 (iv) 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.

     

    
      
        
        

      

      
        79

        
          

        

      

      
        
        

      

    

     

    “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”:
      Countrywide, or any successor thereto appointed hereunder 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)
      of this Agreement.

     

    “Servicer
      Remittance Date”: With respect to any Distribution Date, 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; provided further,
      that if the Servicer Remittance Date falls on a Friday, the Servicer Remittance
      Date shall be the Business Day immediately preceding such Friday.

     

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

     

    
      
        
        

      

      
        80

        
          

        

      

      
        
        

      

    

     

    “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 Servicer with respect to any Mortgage Loans that were transferred to the
      Servicer prior to the Cut-off Date and/or (b) the Depositor with respect to
      any
      Mortgage Loans that were transferred to the Servicer after the Cut-off Date)
      by
      the Servicer in connection with a default, delinquency or other unanticipated
      event by the 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 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 Servicer perform its obligations under this Agreement.
      Servicing Advances also include any reasonable “out-of-pocket” cost and expenses
      (including legal fees) incurred by the 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. The Servicer 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 Servicer with
      respect to any Mortgage Loans that were transferred to the Servicer prior to
      the
      Cut-off Date and/or (b) the Depositor with respect to any Mortgage Loans that
      were transferred to the Servicer after the Cut-off Date, as applicable, to
      the
      Master Servicer and, if such schedule is provided by the Depositor, to the
      Servicer, on the earlier of the date on which the Servicer or five (5) Business
      Days following the Servicing Transfer Date, which schedule or schedules shall
      contain the information set forth on Schedule 6.

     

    “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.

     

    “Servicing
      Fee Rate”: 0.50% per annum.

     

    
      
        
        

      

      
        81

        
          

        

      

      
        
        

      

    

     

    “Servicing
      Function Participant”: Means any Sub-Servicer, Subcontractor, other than the
      Servicer, the Master Servicer, the Custodian, the Trustee and the Securities
      Administrator, that is determined by the Servicer to be “participating in the
      servicing function” within the meaning of Item 1122 of Regulation
      AB.

     

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

     

    “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.

     

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

     

    “Stated
      Principal Balance”: With respect to any Mortgage Loan: (a) as of any date of
      determination up to but not including the Distribution Date on which the
      proceeds, if any, of a Liquidation Event with respect to such Mortgage Loan
      would be distributed, the Scheduled Principal Balance of such Mortgage Loan
      as
      of the Cut-off Date, as shown in the Mortgage Loan Schedule, minus the sum
      of
      (i) the principal portion of each Monthly Payment due on a Due Date subsequent
      to the Cut-off Date, to the extent received from the Mortgagor or advanced
      by
      the Servicer or a successor to the Servicer and distributed pursuant to
      Section 5.01 of this Agreement on or before such date of determination,
      (ii) all Principal Prepayments received after the Cut-off Date, to the extent
      distributed pursuant to Section 5.01 of this Agreement on or before such
      date of determination, (iii) all Liquidation Proceeds and Insurance Proceeds
      applied by the Servicer as recoveries of principal in accordance with the
      provisions of Section 3.13 of this Agreement, to the extent distributed
      pursuant to Section 5.01 of this Agreement on or before such date of
      determination, and (iv) any Realized Loss incurred with respect thereto as
      a
      result of a Deficient Valuation made during or prior to the Prepayment Period
      for the most recent Distribution Date coinciding with or preceding such date
      of
      determination; and (b) as of any date of determination coinciding with or
      subsequent to the Distribution Date on which the proceeds, if any, of a
      Liquidation Event with respect to such Mortgage Loan would be distributed,
      zero.
      With respect to any REO Property: (a) as of any date of determination up to
      but
      not including the Distribution Date on which the proceeds, if any, of a
      Liquidation Event with respect to such REO Property would be distributed, an
      amount (not less than zero) equal to the Stated Principal Balance of the related
      Mortgage Loan as of the date on which such REO Property was acquired on behalf
      of REMIC I, minus the sum of (i) if such REO Property was acquired before the
      Distribution Date in any calendar month, the principal portion of the Monthly
      Payment due on the Due Date in the calendar month of acquisition, to the extent
      advanced by the Servicer or a successor to the Servicer and distributed pursuant
      to Section 5.01 of this Agreement, on or before such date of determination
      and (ii) the aggregate amount of REO Principal Amortization in respect of such
      REO Property for all previously ended calendar months, to the extent distributed
      pursuant to Section 5.01 of this Agreement on or before such date of
      determination; and (b) as of any date of determination coinciding with or
      subsequent to the Distribution Date on which the proceeds, if any, of a
      Liquidation Event with respect to such REO Property would be distributed,
      zero.

     

    
      
        
        

      

      
        82

        
          

        

      

      
        
        

      

    

     

    “Stepdown
      Date”: The earlier to occur of (i) the later to occur of (x) the Distribution
      Date occurring in October 2009 and (y) the first Distribution Date on which
      the
      Credit Enhancement Percentage (calculated for this purpose only after taking
      into account distributions 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 greater than or equal to approximately 49.40% and (ii) the first
      Distribution Date following the Distribution Date on which the aggregate
      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 with respect to Mortgage Loans
      under
      the direction or authority of the Servicer (or a Sub-Servicer of the Servicer),
      the Master Servicer, the Trustee, the Custodian or the Securities
      Administrator.

     

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

     

    “Subsequent
      Recoveries”: As of any Distribution Date, amounts received during the related
      Prepayment Period by the 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 the Servicer related
      to such Mortgage Loan or REO Property.

     

    “Sub-Servicer”:
      Means any Person that (i) is 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 a substantial
      portion of the material 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 the Servicer and a Sub-Servicer
      relating to servicing and administration of certain Mortgage Loans as provided
      in Section 3.02 of this Agreement.

     

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

     

    “Supplemental
      Interest Trust”: The corpus of a trust created pursuant to Section 5.07 of
      this Agreement and designated as the “Supplemental Interest Trust,” consisting
      of the Swap Agreement, the Class IO Interest and the right to receive payments
      in respect of the Class IO Distribution Amount. For the avoidance of doubt,
      the
      Supplemental Interest Trust does not constitute a part of the Trust
      Fund.

     

    “Supplemental
      Interest Trust Trustee”: HSBC Bank USA, National Association a national banking
      association, or its successor in interest, or any successor supplemental
      interest trust trustee appointed as provided herein or in the Swap Agreement
      provided.

     

    
      
        
        

      

      
        83

        
          

        

      

      
        
        

      

    

     

    “Swap
      Agreement”: The Interest Rate Swap Agreement, dated as of September 15, 2006,
      between the Supplemental Interest Trust Trustee and the Swap Provider, which
      agreement provides for Net Swap Payments and Swap Termination Payments to be
      paid, as provided therein, together with any schedules, confirmations or other
      agreements relating thereto. The Securities Administrator will provide a copy
      of
      the Swap Agreement to any Certificateholder upon request. 

     

    “Swap
      LIBOR”: LIBOR as determined pursuant to the Swap Agreement.

     

    “Swap
      Notional Amount”: For each calculation period as defined in the Swap Agreement,
      the amount set forth below:

     

    
      	
              Distribution
                Date

            	
              Swap
                Notional Amount

              ($)

            
	
              April
                2007

            	
              783,342,714.00

            
	
              May
                2007

            	
              755,994,254.00

            
	
              June
                2007

            	
              726,833,376.00

            
	
              July
                2007

            	
              696,763,252.00

            
	
              August
                2007

            	
              667,941,042.00

            
	
              September
                2007

            	
              640,314,805.00

            
	
              October
                2007

            	
              613,834,771.00

            
	
              November
                2007

            	
              588,453,244.00

            
	
              December
                2007

            	
              564,124,518.00

            
	
              January
                2008

            	
              540,804,795.00

            
	
              February
                2008

            	
              518,452,103.00

            
	
              March
                2008

            	
              497,026,221.00

            
	
              April
                2008

            	
              476,440,904.00

            
	
              May
                2008

            	
              456,700,982.00

            
	
              June
                2008

            	
              429,393,091.00

            
	
              July
                2008

            	
              365,864,061.00

            
	
              August
                2008

            	
              313,084,438.00

            
	
              September
                2008

            	
              269,143,783.00

            
	
              October
                2008

            	
              236,214,786.00

            
	
              November
                2008

            	
              225,646,003.00

            
	
              December
                2008

            	
              215,558,588.00

            
	
              January
                2009

            	
              205,930,700.00

            
	
              February
                2009

            	
              196,750,755.00

            
	
              March
                2009

            	
              187,987,508.00

            
	
              April
                2009

            	
              179,621,745.00

            

    

     

    
      
        
        

      

      
        84

        
          

        

      

      
        
        

      

    

     

     

    
      	
              Distribution
                Date

            	
              Swap
                Notional Amount

              ($)

            

    

    
      	
              May
                2009

            	
              171,635,153.00

            
	
              June
                2009

            	
              164,010,272.00

            
	
              July
                2009

            	
              156,730,592.00

            
	
              August
                2009

            	
              149,781,557.00

            
	
              September
                2009

            	
              143,146,441.00

            
	
              October
                2009

            	
              136,810,829.00

            
	
              November
                2009

            	
              130,760,979.00

            
	
              December
                2009

            	
              124,983,784.00

            
	
              January
                2010

            	
              119,466,794.00

            
	
              February
                2010

            	
              114,198,199.00

            
	
              March
                2010

            	
              109,166,472.00

            
	
              April
                2010

            	
              104,360,780.00

            
	
              May
                2010

            	
               
                99,770,793.00

            
	
              June
                2010

            	
               
                95,386,661.00

            
	
              July
                2010

            	
               
                91,199,003.00

            
	
              August
                2010

            	
               
                87,195,191.25

            
	
              September
                2010

            	
               
                83,367,154.53

            
	
              October
                2010

            	
               
                79,707,176.00

            
	
              November
                2010

            	
               
                76,207,877.57

            
	
              December
                2010

            	
               
                72,862,205.07

            
	
              January
                2011

            	
               
                69,663,414.04

            
	
              February
                2011

            	
               
                66,605,056.09

            
	
              March
                2011

            	
               
                63,680,965.94

            
	
              April
                2011

            	
               
                60,885,248.97

            
	
              May
                2011

            	
               
                58,212,269.36

            
	
              June
                2011

            	
               
                55,656,638.70

            
	
              July
                2011

            	
               
                53,213,205.14

            
	
              August
                2011

            	
               
                50,877,043.02

            
	
              September
                2011

            	
               
                48,643,442.92

            
	
              October
                2011

            	
               
                46,507,902.15

            
	
              November
                2011

            	
               
                44,466,115.74

            
	
              December
                2011

            	
               
                42,513,967.68

            

    

    

    “Swap
      Provider”: The swap provider under the Swap Agreement either (a) entitled to
      receive payments from the Supplemental Interest Trust or (b) required to make
      payments to the Supplemental Interest Trust, in either case pursuant to the
      terms of the Swap Agreement, and any successor in interest or assign. Initially,
      the Swap Provider shall be Swiss Re Financial Products Corporation.

     

    “Swap
      Provider Trigger Event”: A Swap Provider Trigger Event shall have occurred if
      any of the following has occurred: (i) an Event of Default under the Swap
      Agreement with respect to which the Swap Provider is a Defaulting Party (as
      defined in the Swap Agreement), (ii) a Termination Event under the Swap
      Agreement with respect to which the Swap Provider is the sole Affected Party
      (as
      defined in the Swap Agreement) or (iii) an Additional Termination Event under
      the Swap Agreement with respect to which the Swap Provider is the sole Affected
      Party.

     

    
      
        
        

      

      
        85

        
          

        

      

      
        
        

      

    

     

    “Swap
      Termination Payment”: Upon the designation of an “Early Termination Date” as
      defined in the Swap Agreement, the payment to be made by the Securities
      Administrator on behalf of the Supplemental Interest Trust Trustee from the
      Supplemental Interest Trust to the Swap Provider, or by the Swap Provider to
      the
      Supplemental Interest Trust, as applicable, pursuant to the terms of the Swap
      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.

     

    “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 if
      either (x) the Delinquency Percentage exceeds 32.39% of the 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

            
	
              October
                2008 to September 2009

            	 	
              1.35%
                plus 1/12 of 1.65% for each month thereafter

            
	
              October
                2009 to September 2010

            	 	
              3.00%
                plus 1/12 of 1.75% for each month thereafter

            
	
              October
                2010 to September 2011

            	 	
              4.70%
                plus 1/12 of 1.35% for each month thereafter

            
	
              October
                2011 to September 2012

            	 	
              6.05%
                plus 1/12 of 0.70% for each month thereafter

            
	
              October
                2012 and thereafter

            	 	
              6.75%

            

    

     

    
      
        
        

      

      
        86

        
          

        

      

      
        
        

      

    

    
 

    “Trust”:
      ACE Securities Corp., Home Equity Loan Trust, Series 2006-NC2, the trust created
      hereunder.

     

    “Trust
      Fund”: Collectively, all of the assets of REMIC I, REMIC II, REMIC III and the
      Reserve Fund and any amounts on deposit therein and any proceeds thereof and
      the
      Cap Contracts. For avoidance of doubt, the Trust Fund does not include the
      Supplemental Interest Trust.

     

    “Trust
      REMIC”: REMIC I, REMIC II or REMIC III.

     

    “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 amount of the REMIC Regular Interests outstanding as of any date
      of determination. As of the Closing Date, the Uncertificated Balance of each
      REMIC 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 the REMIC Regular Interest shall be reduced
      by all distributions of principal made on such REMIC 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 II Regular Interest ZZ shall
      be increased by interest deferrals as provided in Section 5.01 of this
      Agreement. The Uncertificated Balance of each REMIC Regular Interest shall
      never
      be less than zero.

     

    “Uncertificated
      Interest”: With respect to any REMIC Regular Interest for any Distribution Date,
      one month’s interest at the related REMIC Remittance Rate applicable to such
      REMIC Regular Interest for such Distribution Date, accrued on the Uncertificated
      Balance thereof immediately prior to such Distribution Date. Uncertificated
      Interest in respect of the REMIC 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 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
      and (b) the aggregate amount of any Relief Act Interest Shortfall, if any
      allocated, in each case, to such REMIC Regular Interest or REMIC Regular
      Interest pursuant to Section 1.02 of this Agreement. In addition,
      Uncertificated Interest with respect to each Distribution Date, as to any REMIC
      Regular Interest, shall be reduced by Realized Losses, if any, allocated to
      such
      REMIC Regular Interest pursuant to Section 1.02 and Section 5.04 of
      this Agreement.

     

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

     

    
      
        
        

      

      
        87

        
          

        

      

      
        
        

      

    

     

    
      	
              Distribution
                Date

            	 	
              REMIC
                I Regular Interests

            
	
              1st
                through 7th 

            	 	
              I-1-A
                through I-57-A and II-1-A through II-57-A 

            
	
              8

            	 	
              I-2-A
                through I-57-A and II-2-A through II-57-A 

            
	
              9

            	 	
              I-3-A
                through I-57-A and II-3-A through II-57-A 

            
	
              10

            	 	
              I-4-A
                through I-57-A and II-4-A through II-57-A 

            
	
              11

            	 	
              I-5-A
                through I-57-A and II-5-A through II-57-A 

            
	
              12

            	 	
              I-6-A
                through I-57-A and II-6-A through II-57-A 

            
	
              13

            	 	
              I-7-A
                through I-57-A and II-7-A through II-57-A 

            
	
              14

            	 	
              I-8-A
                through I-57-A and II-8-A through II-57-A

            
	
              15

            	 	
              I-9-A
                through I-57-A and II-9-A through II-57-A 

            
	
              16

            	 	
              I-10-A
                through I-57-A and II-10-A through II-57-A 

            
	
              17

            	 	
              I-11-A
                through I-57-A and II-11-A through II-57-A 

            
	
              18

            	 	
              I-12-A
                through I-57-A and II-12-A through II-57-A 

            
	
              19

            	 	
              I-13-A
                through I-57-A and II-13-A through II-57-A 

            
	
              20

            	 	
              I-14-A
                through I-57-A and II-14-A through II-57-A 

            
	
              21

            	 	
              I-15-A
                through I-57-A and II-15-A through II-57-A 

            
	
              22

            	 	
              I-16-A
                through I-57-A and II-16-A through II-57-A 

            
	
              23

            	 	
              I-17-A
                through I-57-A and II-17-A through II-57-A 

            
	
              24

            	 	
              I-18-A
                through I-57-A and II-18-A through II-57-A 

            
	
              25

            	 	
              I-19-A
                through I-57-A and II-19-A through II-57-A 

            
	
              26

            	 	
              I-20-A
                through I-57-A and II-20-A through II-57-A 

            
	
              27

            	 	
              I-21-A
                through I-57-A and II-21-A through II-57-A 

            
	
              28

            	 	
              I-22-A
                through I-57-A and II-22-A through II-57-A 

            
	
              29

            	 	
              I-23-A
                through I-57-A and II-23-A through II-57-A 

            
	
              30

            	 	
              I-24-A
                through I-57-A and II-24-A through II-57-A 

            
	
              31

            	 	
              I-25-A
                through I-57-A and II-25-A through II-57-A 

            
	
              32

            	 	
              I-26-A
                through I-57-A and II-26-A through II-57-A 

            
	
              33

            	 	
              I-27-A
                through I-57-A and II-27-A through II-57-A 

            
	
              34

            	 	
              I-28-A
                through I-57-A and II-28-A through II-57-A 

            
	
              35

            	 	
              I-29-A
                through I-57-A and II-29-A through II-57-A

            
	
              36

            	 	
              I-30-A
                through I-57-A and II-30-A through II-57-A 

            
	
              37

            	 	
              I-31-A
                through I-57-A and II-31-A through II-57-A 

            
	
              38

            	 	
              I-32-A
                through I-57-A and II-32-A through II-57-A 

            
	
              39

            	 	
              I-33-A
                through I-57-A and II-33-A through II-57-A 

            
	
              40

            	 	
              I-34-A
                through I-57-A and II-34-A through II-57-A 

            
	
              41

            	 	
              I-35-A
                through I-57-A and II-35-A through II-57-A 

            
	
              42

            	 	
              I-36-A
                through I-57-A and II-36-A through II-57-A 

            
	
              43

            	 	
              I-37-A
                through I-57-A and II-37-A through II-57-A 

            
	
              44

            	 	
              I-38-A
                through I-57-A and II-38-A through II-57-A 

            
	
              45

            	 	
              I-39-A
                through I-57-A and II-39-A through II-57-A 

            
	
              46

            	 	
              I-40-A
                through I-57-A and II-40-A through II-57-A 

            
	
              47

            	 	
              I-41-A
                through I-57-A and II-41-A through II-57-A 

            
	
              48

            	 	
              I-42-A
                through I-57-A and II-42-A through II-57-A 

            
	
              49

            	 	
              I-43-A
                through I-57-A and II-43-A through II-57-A 

            
	
              50

            	 	
              I-44-A
                through I-57-A and II-44-A through II-57-A 

            
	
              51

            	 	
              I-45-A
                through I-57-A and II-45-A through II-57-A 

            
	
              52

            	 	
              I-46-A
                through I-57-A and II-46-A through II-57-A 

            
	
              53

            	 	
              I-47-A
                through I-57-A and II-47-A through II-57-A 

            
	
              54

            	 	
              I-48-A
                through I-57-A and II-48-A through II-57-A 

            
	
              55

            	 	
              I-49-A
                through I-57-A and II-49-A through II-57-A 

            
	
              56

            	 	
              I-50-A
                through I-57-A and II-50-A through II-57-A 

            
	
              57

            	 	
              I-51-A
                through I-57-A and II-51-A through II-57-A 

            
	
              58

            	 	
              I-52-A
                through I-57-A and II-52-A through II-57-A 

            
	
              59

            	 	
              I-53-A
                through I-57-A and II-53-A through II-57-A 

            
	
              60

            	 	
              I-54-A
                through I-57-A and II-54-A through II-57-A 

            
	
              61

            	 	
              I-55-A
                through I-57-A and II-55-A through II-57-A 

            
	
              62

            	 	
              I-56-A
                and I-57-A and II-56-A and II-57-A 

            
	
              63

            	 	
              I-57-A
                and II-57-A 

            
	
              thereafter

            	 	
              $0.00

            

    

     

    
      
        
        

      

      
        88

        
          

        

      

      
        
        

      

    

    
 

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

     

    “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 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 originator of
      the
      Mortgage Loan in accordance with the originator’s underwriting guidelines, and
      (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
      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 originator of the Mortgage
      Loan in accordance with the 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 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 twelve (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 twelve (12) months or more prior to
      origination.

     

    “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 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. 

     

    
      
        
        

      

      
        89

        
          

        

      

      
        
        

      

    

     

    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 Certificates, the
      Mezzanine Certificates and the Class CE Certificates for any Distribution Date,
      (1) the aggregate amount of any Prepayment Interest Shortfalls (to the extent
      not covered by payments by the Servicer pursuant to Section 3.22 of this
      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 Certificates, second, to the Class M-11 Certificates, third, to the Class
      M-10 Certificates, fourth, to the Class M-9 Certificates, fifth, to the Class
      M-8 Certificates, sixth, to the Class M-7 Certificates, seventh, to the Class
      M-6 Certificates, eighth, to the Class M-5 Certificates, ninth, to the Class
      M-4
      Certificates, tenth, to the Class M-3 Certificates, eleventh, to the Class
      M-2
      Certificates, twelfth, to the Class M-1 Certificates and thirteenth, to the
      Class A Certificates, on a pro
      rata
      basis,
      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 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
      Group I Regular Interests for any Distribution Date, the aggregate amount of
      any
      Prepayment Interest Shortfalls (to the extent not covered by payments by the
      Servicer pursuant to Section 3.22 of this Agreement or the Master Servicer
      pursuant to Section 4.19 of this Agreement) and any Relief Act Interest
      Shortfalls incurred in respect of Group I Mortgage Loans shall be allocated
      first, to REMIC I Regular Interest I and to the REMIC I Group I Regular
      Interests ending with the designation “B”, pro
      rata
      based
      on, and to the extent of, one month’s interest at the then applicable respective
      REMIC I Remittance Rates on the respective Uncertificated Principal Balances
      of
      each such REMIC I Regular Interest, and then, to REMIC I Group I Regular
      Interests ending with the designation “A”, pro rata based on, and to the extent
      of, one month’s interest at the then applicable respective REMIC I Remittance
      Rates on the respective Uncertificated Balances of each such REMIC I Regular
      Interest.

     

    For
      purposes of calculating the amount of Uncertificated Interest for the REMIC
      I
      Group II Regular Interests for any Distribution Date, the aggregate amount
      of
      any Prepayment Interest Shortfalls (to the extent not covered by payments by
      the
      Servicer pursuant to Section 3.22 of this Agreement or the Master Servicer
      pursuant to Section 4.19 of this Agreement) and any Relief Act Interest
      Shortfalls incurred in respect of Group II Mortgage Loans shall be allocated
      first, to REMIC I Regular Interest II and to the REMIC I Group II Regular
      Interests ending with the designation “B”, pro
      rata
      based
      on, and to the extent of, one month’s interest at the then applicable respective
      REMIC I Remittance Rates on the respective Uncertificated Principal Balances
      of
      each such REMIC I Regular Interest, and then, to REMIC I Group II Regular
      Interests ending with the designation “A”, pro rata based on, and to the extent
      of, one month’s interest at the then applicable respective REMIC I Remittance
      Rates on the respective Uncertificated Balances of each such REMIC I Regular
      Interest. 

     

    
      
        
        

      

      
        90

        
          

        

      

      
        
        

      

    

     

    For
      purposes of calculating the amount of Uncertificated Interest for the REMIC
      II
      Regular Interests for any Distribution Date:

     

    (A) The
      REMIC
      II Marker Allocation Percentage of the aggregate amount of any Prepayment
      Interest Shortfalls (to the extent not covered by payments by the Servicer
      pursuant to Section 3.22 of this Agreement or the Master Servicer pursuant
      to Section 4.19 of this Agreement) and the REMIC II Marker Allocation
      Percentage of any Relief Act Interest Shortfalls incurred in respect of the
      Mortgage Loans for any Distribution Date shall be allocated among REMIC II
      Regular Interest AA, REMIC II Regular Interest A-1, REMIC II Regular Interest
      A-2A, REMIC II Regular Interest A-2B, REMIC II Regular Interest A-2C, REMIC
      II
      Regular Interest A-2D, REMIC II Regular Interest M-1, REMIC II Regular Interest
      M-2, REMIC II Regular Interest M-3, REMIC II Regular Interest M-4, REMIC II
      Regular Interest M-5, REMIC II Regular Interest M-6, REMIC II Regular Interest
      M-7, REMIC II Regular Interest M-8, REMIC II Regular Interest M-9, REMIC II
      Regular Interest M-10, REMIC II Regular Interest M-11, REMIC II Regular Interest
      P and REMIC II Regular Interest ZZ pro
      rata
      based
      on, and to the extent of, one month’s interest at the then applicable respective
      REMIC II Remittance Rate on the respective Uncertificated Balance of each such
      REMIC II Regular Interest; and

     

    (B) The
      REMIC
      II Sub WAC Allocation Percentage of the aggregate amount of any Prepayment
      Interest Shortfalls (to the extent not covered by payments by the Servicer
      pursuant to Section 3.22 of this Agreement or by the Master Servicer
      pursuant to Section 4.19 of this Agreement) and the REMIC II Sub WAC
      Allocation Percentage of any Relief Act Interest Shortfalls incurred in respect
      of the Mortgage Loans for any Distribution Date shall be allocated first, to
      Uncertificated Interest payable to REMIC II Regular Interest I-SUB, REMIC II
      Regular Interest I-GRP, REMIC II Regular Interest II-SUB, REMIC II Regular
      Interest II-GRP and REMIC II Regular Interest XX, pro
      rata
      based
      on, and to the extent of, one month’s interest at the then applicable respective
      REMIC II Remittance Rate on the respective Uncertificated Balance of each such
      REMIC II Regular Interest.

     

    
      
        
        

      

      
        91

        
          

        

      

      
        
        

      

    

     

    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 of the Depositor under
      the
      Mortgage Loan Purchase Agreement (including, without limitation the right to
      enforce the obligations of the other parties thereto thereunder), the rights
      of
      the Depositor under the Cap Contracts, the right to any payments made by the
      Cap
      Counterparty under the Cap Contracts, the right to any Net Swap Payment and
      any
      Swap Termination Payment made by the Swap Provider and all other assets included
      or to be included in REMIC I. Such assignment includes all interest and
      principal received by the Depositor and the Servicer on or with respect to
      the
      Mortgage Loans (other than payments of principal and interest due on such
      Mortgage Loans on or before the Cut-off Date). A copy of the Mortgage Loan
      Purchase Agreement is attached hereto as Exhibit F.

     

    In
      connection with such transfer and assignment, the Depositor does hereby deliver
      to, and deposit with the Custodian pursuant to the 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 Agreement, the Custodian
      will be required to review such Mortgage Loan Documents and deliver to the
      Trustee, the Depositor, the Servicer and the Sponsor certifications (in the
      forms attached to the Custodial Agreement) with respect to such review with
      exceptions noted thereon. In addition, under the Custodial Agreement 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 Custodian 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 Custodian pursuant to the terms and conditions of the Custodial
      Agreement.

     

    The
      Depositor shall deliver or cause the originator to deliver to the 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 Custodian, such documents including the mortgagee policy of
      title
      insurance and any Mortgage Loan Documents upon return from the recording office.
      The Servicer shall not be responsible for any custodian fees or other costs
      incurred in obtaining such documents and the Depositor shall cause the Servicer
      to be reimbursed for any such costs the Servicer may incur in connection with
      performing its obligations under this Agreement.

     

    
      
        
        

      

      
        92

        
          

        

      

      
        
        

      

    

     

    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 Agreement, 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 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 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 of any materially defective document in, or
        that
        a document is missing from, a Mortgage File or 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,
        the
        Trustee shall promptly notify the Sponsor and the 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 Servicer for deposit in
        the
        Collection Account, and the Trustee, upon receipt of written certification
        from
        the Servicer of such deposit, shall release or cause the Custodian (upon
        receipt
        of a request for release in the form attached to the 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.

       

      
        
          
          

        

        
          93

          
            

          

        

        
          
          

        

      

       

      In
        addition, promptly upon the earlier of discovery by the Servicer or receipt
        of
        notice by the Servicer of the breach of the representation or covenant of
        the
        Sponsor set forth in Section 5(xii) 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, the 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 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 Agreement, 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 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 Servicer,
        with
        respect to such Qualified Substitute Mortgage Loan or Loans, an initial
        certification pursuant to the Custodial Agreement, with any applicable
        exceptions noted thereon. Within one year of the date of substitution, the
        Custodian on behalf of the Trustee shall deliver to the Depositor, the Trustee
        and the Servicer a final certification pursuant to the 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
        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.

       

      
        
          
          

        

        
          94

          
            

          

        

        
          
          

        

      

       

      For
        any
        month in which the Sponsor substitutes one or more Qualified Substitute Mortgage
        Loans for one or more Deleted Mortgage Loans, the 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 Servicer for deposit in the Collection Account an amount equal to the
        Substitution Shortfall Amount, if any, and the Trustee or the 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
        Custodial Agreement and certification by the 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, the 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.

       

      
        
          
          

        

        
          95

          
            

          

        

        
          
          

        

      

       

      (d) With
        respect to a breach of the representations made pursuant to Section 5(xii)
        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 the Servicer or receipt of
        notice by the Servicer of the breach of any representation, warranty or covenant
        of the Servicer 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, the Servicer 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 the Servicer,
        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;

       

      
        
          
          

        

        
          96

          
            

          

        

        
          
          

        

      

       

      (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;

       

      (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, the Servicer, the Credit Risk Manager,
        the
        Cap Counterparty, the Swap Provider, the Trustee or New Century Mortgage
        Corporation.

       

      
        
          
          

        

        
          97

          
            

          

        

        
          
          

        

      

       

      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 the
        Servicer.

       

      The
        Servicer hereby represents, warrants and covenants to the Master Servicer,
        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) The
        Servicer is a limited partnership 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 the Servicer in any state in which a Mortgaged Property related to a 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
        Mortgage Loan and to service the Mortgage Loans in accordance with the terms
        of
        this Agreement;

       

      (ii) The
        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 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 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 Servicer, the servicing of
        the
        Mortgage Loans by the Servicer hereunder, the consummation by the 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
        Servicer and will not (A) result in a breach of any term or provision of
        the
        formation documents of the 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 Servicer is a party or
        by
        which it may be bound, or any statute, order or regulation applicable to
        the
        Servicer of any court, regulatory body, administrative agency or governmental
        body having jurisdiction over the Servicer; and the 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
        Servicer’s knowledge, would in the future materially and adversely affect, (x)
        the ability of the Servicer to perform its obligations under this Agreement,
        (y)
        the business, operations, financial condition, properties or assets of the
        Servicer taken as a whole or (z) the legality, validity or enforceability
        of
        this Agreement;

       

      
        
          
          

        

        
          98

          
            

          

        

        
          
          

        

      

       

      (iv) The
        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 Servicer that would materially and adversely
        affect the execution, delivery or enforceability of this Agreement or the
        ability of the Servicer to service the 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,
        the
        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
        Servicer 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 the Servicer
        of,
        or compliance by the 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;

       

      (viii) The
        Servicer 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; 

       

      (ix) The
        Servicer 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 Mortgage Loans that are registered with MERS; and

       

      (x) The
        Servicer will not waive any Prepayment Charge other than in accordance with
        the
        standard set forth in Section 3.01.

       

      Notwithstanding
        anything to the contrary contained in this Agreement, if the covenant of
        the
        Servicer set forth in Section 2.05(x) above is breached, the Servicer 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 Collection Account within
        90
        days of the earlier of discovery by the Servicer or receipt of notice by
        the
        Servicer of such breach; provided, however, the Servicer shall not have any
        obligation to pay the amount of any uncollected Prepayment Charge under this
        Section 2.05 if the Servicer did not have a copy of the related Mortgage
        Note,
        the Servicer requested a copy of the same from the Custodian in accordance
        with
        the terms of the Custodial Agreement and the Custodian failed to provide
        such a
        copy within the time frame set forth in the Custodial Agreement. Furthermore,
        notwithstanding any other provisions of this Agreement, any payments made
        by the
        Servicer in respect of any waived Prepayment Charges pursuant to this paragraph
        shall be deemed to be paid outside of the Trust Fund.

       

      
        
          
          

        

        
          99

          
            

          

        

        
          
          

        

      

       

      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 Custodian and shall inure to the benefit of the Trustee,
        the Master Servicer, the Securities Administrator, the Depositor, the
        Certificateholders. Upon discovery by any such Person or the Servicer 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,
        unless such breach shall not be susceptible of cure within ninety (90) days,
        the
        obligation of the Servicer set forth in Section 2.03(e) to cure breaches
        shall
        constitute the sole remedy against the Servicer 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 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 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 II
        and REMIC III 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 REMIC II Regular Interests,
        respectively, and all ownership interests evidenced or constituted by the
        Class
        R-II Interest and the REMIC II Regular Interests, shall be as set forth in
        this
        Agreement. The Class R-II Interest and the REMIC II Regular Interests shall
        constitute the entire beneficial ownership interest in REMIC II. The Trustee
        acknowledges receipt of the REMIC II 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-III Interest and REMIC III (as
        holder
        of the REMIC II Regular Interests). The rights of the Holder of the Class
        R-III
        Interest and REMIC III (as holder of the REMIC II Regular Interests) to receive
        distributions from the proceeds of REMIC III in respect of the Class R-III
        Interest, the Class IO Interest and the Regular Certificates, respectively,
        and
        all ownership interests evidenced or constituted by the Class R-III Interest,
        the Class IO Interest and the Regular Certificates, shall be as set forth
        in
        this Agreement. The Class R-III Interest, the Class IO Interest and the Regular
        Certificates shall constitute the entire beneficial ownership interest in
        REMIC
        III.

       

      
        
          
          

        

        
          100

          
            

          

        

        
          
          

        

      

       

      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, the Class R-II Interest and the Class R-III 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-NC2” 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

       

      
        
          
          

        

        
          101

          
            

          

        

        
          
          

        

      

       

      (e) subject
        to compliance with this Agreement, to engage in such other activities as
        may be
        required in connection with the 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.

       

      
        
          
          

        

        
          102

          
            

          

        

        
          
          

        

      

       

      ARTICLE
        III

       

      ADMINISTRATION
        AND SERVICING

      OF
        THE
        MORTGAGE LOANS; ACCOUNTS

       

      SECTION
        3.01. The Servicer to Act as Servicer.

       

      On
        and
        after the Closing Date, the Servicer shall service and administer the 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 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 Servicer or any of its Affiliates may have with the
        related Mortgagor;

       

      (ii) the
        ownership of any Certificate by the Servicer or any of its
        Affiliates;

       

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

       

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

       

      To
        the
        extent consistent with the foregoing, the Servicer shall also seek to maximize
        the timely and complete recovery of principal and interest on the related
        Mortgage Notes and shall waive (or permit a Sub-Servicer to waive) a Prepayment
        Charge 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 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 Servicer, the Servicer and the Master 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.

       

      
        
          
          

        

        
          103

          
            

          

        

        
          
          

        

      

       

      Subject
        only to the above-described servicing standards (the “Accepted Servicing
        Practices”) and the terms of this Agreement and of the related Mortgage Loans,
        the 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 Servicer in its
        own
        name is hereby authorized and empowered by the Trustee when the 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 related Mortgage Loans
        and
        the related 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 Servicer shall service and administer the related 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 3.14, the Trustee shall execute, at the written request
        of
        the Servicer, and furnish to the Servicer a power of attorney in the form
        of
        Exhibit D hereto and other documents necessary or appropriate to enable the
        Servicer to carry out its servicing and administrative duties hereunder,
        and
        furnished to the Trustee by the Servicer, and the Trustee shall not be liable
        for the actions of the Servicer under such powers of attorney and shall be
        indemnified by the Servicer for any cost, liability or expense incurred by
        the
        Trustee in connection with the Servicer’s use or misuse of any such power of
        attorney.

       

      The
        Servicer is hereby authorized and empowered in its own name or in the name
        of a
        Sub-Servicer, when the Servicer or such 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 the Servicer.

       

      In
        accordance with Accepted Servicing Practices, the 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
        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 the Servicer shall be required
        to make such Servicing Advances only to the extent that such Servicing Advances,
        in the good faith judgment of the Servicer, will be recoverable by the Servicer
        out of Insurance Proceeds, Liquidation Proceeds, or otherwise out of the
        proceeds of the related Mortgage Loan. Any cost incurred by the Servicer
        in
        effecting the payment of taxes and assessments on a Mortgaged Property shall
        not, for the purpose of calculating the Stated 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. 

       

      
        
          
          

        

        
          104

          
            

          

        

        
          
          

        

      

       

      Notwithstanding
        the foregoing, the parties 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 Servicer with respect to any
        Mortgage Loans that were transferred to the Servicer prior to the Cut-off
        Date
        and/or (b) the Depositor with respect to any Mortgage Loans that were
        transferred to the Servicer after the Cut-off Date, (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, the 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 Servicer may not make any
        future
        advances with respect to a Mortgage Loan and shall not permit any modification
        with respect to any related Mortgage Loan 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 Servicer, reasonably foreseeable)
        or any
        modification, waiver or amendment of any term of any related 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 a 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
        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.

       

      
        
          
          

        

        
          105

          
            

          

        

        
          
          

        

      

       

      The
        Servicer 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 Agreements Between the Servicer and
        Sub-Servicers.

       

      (a) The
        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. If required by Regulation
        AB, the
        Servicer shall cause any Sub-Servicer used by the Servicer (or by any
        Sub-Servicer) for the benefit of the Master Servicer and the Depositor to
        comply
        with the provisions of this Section and with Sections 3.17, 3.18, 3.19(g)
        and
        3.27 of this Agreement (provided, however, that the Servicer acknowledges
        that
        it shall cause any Sub-Servicer to comply with Section 3.19(a) although it
        is
        not required by Regulation AB to comply with Section 3.19(a)), and to provide
        the information required with respect to such Sub-Servicer under Section
        3.19(f)
        of this Agreement. The 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 Servicer or a Sub-Servicer or reference
        to actions taken through the Servicer or otherwise, the 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 Agreements 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 Servicer alone were servicing and
        administering the Mortgage Loans. Every Sub-Servicing Agreement entered into
        by
        the 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 Servicer with the same force
        and
        effect as if performed directly by the Servicer.

       

      (b) If
        required by Regulation AB, the Servicer shall promptly, upon request, provide
        to
        the Master Servicer, the Trustee and the Depositor a written description
        of the
        role and function of each Subcontractor utilized by the Servicer or any
        Sub-Servicer, specifying (i) the identity of each such Subcontractor (ii)
        which
        (if any) of such Subcontractors are Servicing Function Participants, 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 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 the Servicer of any such Subcontractor
        shall
        not release the Servicer from any of its obligations hereunder and the Servicer
        shall remain responsible hereunder for all acts and omissions of such
        Subcontractor as fully as if such acts and omissions were those of the Servicer,
        and the Servicer shall pay all fees and expenses of the Subcontractor from
        the
        Servicer’s own funds.

       

      
        
          
          

        

        
          106

          
            

          

        

        
          
          

        

      

       

      (c) The
        Servicer shall cause any Servicing Function Participant 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. The Servicer shall be responsible
        for
        obtaining from each such Servicing Function Participant and delivering to
        the
        Master Servicer, the Trustee and the 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 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 the Servicer. 

       

      SECTION
        3.03. Successor Sub-Servicers.

       

      Any
        Sub-Servicing Agreement shall provide that the 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. Any Sub-Servicing Agreement
        shall include the provision that such agreement may be immediately terminated
        as
        soon as is reasonably possible by any successor to the Servicer without fee
        or,
        in the event a termination fee exists, such fee shall be payable by the Servicer
        from its own funds without reimbursement therefor, in accordance with the
        terms
        of this Agreement, in the event that the Servicer (or any successor to the
        Servicer) shall, for any reason, no longer be the Servicer of the related
        Mortgage Loans (including termination due to the Servicer Event of Default).
        The
        Servicer shall be entitled to enter into an agreement with its Sub-Servicer
        and
        Subcontractor for indemnification of the 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,
        Master Servicer, 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 and the Servicer or Subcontractor,
        as
        applicable 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.

       

      
        
          
          

        

        
          107

          
            

          

        

        
          
          

        

      

       

      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 Servicer hereunder by a successor
        servicer pursuant to Section 8.02, it is understood and agreed that the
        Servicer’s rights and obligations under any Sub-Servicing Agreement then in
        force between the 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
        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 Agreements to the assuming party.

       

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

       

      SECTION
        3.06. 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 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, the 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 related to a Mortgage
        Loan
        for a period of not greater than 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 Servicer,
        such default is reasonably foreseeable, the 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 Stated 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 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). The Servicer shall not
        be
        required to institute or join in litigation with respect to collection of
        any
        payment (whether under a Mortgage, Mortgage Note or otherwise or against
        any
        public or governmental authority with respect to a taking or condemnation)
        if it
        reasonably believes that enforcing the provision of the Mortgage or other
        instrument pursuant to which such payment is required is prohibited by
        applicable law.

       

      
        
          
          

        

        
          108

          
            

          

        

        
          
          

        

      

       

      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 Servicer
        shall
        establish and maintain one or more accounts (the “Servicing Accounts”), into
        which all collections from the 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 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 (1) Business Day after the 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
        related 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 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 pursuant to Section 3.01 (with respect to taxes and
        assessments) and Section 3.11 (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 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 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 own funds,
        without any reimbursement therefor. Notwithstanding the foregoing, the Servicer
        shall not be obligated to collect Escrow Payments if the related Mortgage
        Loan
        does not require such payments but the Servicer shall nevertheless be obligated
        to make Servicing Advances as provided in Section 3.01 and Section 3.11.
        In the
        event the 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 Servicing Accounts, any provision to the contrary
        notwithstanding.

       

      To
        the
        extent that a Mortgage does not provide for Escrow Payments, the 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
        Servicer receives notice of a tax lien with respect to the Mortgage Loan
        being
        imposed, the 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 Servicer determines
        the
        advance to be nonrecoverable. The 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.

       

      
        
          
          

        

        
          109

          
            

          

        

        
          
          

        

      

       

      SECTION
        3.08. Collection Account and Distribution Account.

       

      (a) On
        behalf of the Trust Fund, the 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, 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 later than two 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 other than amounts attributable to
        a Due
        Date on or prior 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 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 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 Collection Account;

       

      (v) any
        amounts required to be deposited by the 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 Servicer
        and
        all proceeds (net of amounts payable or reimbursable to the Servicer, the
        Master
        Servicer, the Trustee, the Custodian or the Securities Administrator) of
        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 Servicer in connection with the Principal
        Prepayment of any of the Mortgage Loans or amounts required to be deposited
        by
        the Servicer in connection with a breach of its obligations under Section
        2.05.

       

      
        
          
          

        

        
          110

          
            

          

        

        
          
          

        

      

       

      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, Ancillary Income need not be deposited by the Servicer in the
        Collection Account and may be retained by the Servicer as additional servicing
        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.

       

      (b) 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, the Servicer shall deliver
        to
        the Securities Administrator in immediately available funds for deposit in
        the
        Distribution Account 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
        Collection Account and the amount of all Prepayment Charges collected by
        the
        Servicer in connection with the Principal Prepayment of any of the Mortgage
        Loans then on deposit in the 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 the Collection Account exceeds $100,000
        as of the commencement of business on any Business Day and the Collection
        Account constitutes an Eligible Account solely pursuant to clause (ii) of
        the
        definition of “Eligible Account,” the Servicer shall, on or before 5:00 p.m. New
        York time on such Business Day, withdraw from the Collection Account any
        and all
        amounts payable or reimbursable to the Depositor, the 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 on or
        after
        the first Business Day following the Business Day on which such payment was
        due,
        the Securities Administrator shall send written notice thereof to the Servicer.
        The Servicer shall pay to the Securities Administrator interest on any such
        late
        payment by the 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 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 Servicer of any such interest, or the failure of the Securities
        Administrator to notify the Servicer of such interest, shall not be deemed
        an
        extension of time for payment or a waiver of any Event of Default by the
        Servicer.

       

      
        
          
          

        

        
          111

          
            

          

        

        
          
          

        

      

       

      (c) Funds
        in the Collection Account and in the Distribution Account may be invested
        in
        Permitted Investments in accordance with the provisions set forth in Section
        3.10. The Servicer shall give notice to the Trustee, the Securities
        Administrator and the Master Servicer of the location of the Collection Account
        when established and prior to any change thereof. The Securities Administrator
        shall give notice to the Servicer and the Depositor of the location of the
        Distribution Account when established and prior to any change
        thereof.

       

      (d) Funds
        held in the Collection Account at any time may be delivered by the Servicer
        in
        immediately available funds to the Securities Administrator for deposit in
        the
        Distribution Account. In the event the 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 the Servicer
        in
        accordance with the immediately preceding sentence. In addition, the 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 related 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 Account and Distribution
        Account.

       

      (a) The
        Servicer shall, from time to time, make withdrawals from the Collection Account
        for any of the following purposes or as described in Section 5.03 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(b) of this
        Agreement or permitted to be so remitted pursuant to the first sentence of
        Section 3.08(d) 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) 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;

       

      
        
          
          

        

        
          112

          
            

          

        

        
          
          

        

      

       

      (iii) subject
        to Section 3.13(d) of this Agreement, to pay itself any unpaid Servicing
        Fees and reimburse itself any unreimbursed Servicing Advances with respect
        to
        each related Mortgage Loan, but only to the extent of any Liquidation Proceeds
        and Insurance Proceeds received with respect to such related 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
        or
        portion thereof payable to the Servicer) on the Servicer Remittance Date
        any
        interest or investment income earned on funds deposited in the Collection
        Account;

       

      (v) to
        pay to itself or the Sponsor, as the case may be, with respect to each related
        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 to the Servicer) for

       

      (A) any
        P&I Advance or Servicing Advance previously made by it which the 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 the Servicer shall not be entitled to
        reimbursement for any Servicing Advance made prior to the Cut-off Date if
        the
        Servicer determines that such Servicing Advance constitutes a Nonrecoverable
        Servicing Advance of this Agreement; 

       

      (B) any
        unpaid Servicing Fees to the extent not recoverable from Liquidation Proceeds,
        Insurance Proceeds or other amounts received with respect to the related
        Mortgage Loan under Section 3.06(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;

       

      
        
          
          

        

        
          113

          
            

          

        

        
          
          

        

      

       

      (ix) to
        pay, or to reimburse itself for advances in respect of, expenses incurred
        in
        connection with any related 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;
        and

       

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

       

      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), (iii), (v), (vi), (vii), (viii), (ix) and (x)
        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 Custodian and the Master Servicer amounts to which it
        is
        entitled pursuant to Section 9.05 of this Agreement 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) to
        pay any Net Swap Payment or Swap Termination Payment payable to the Supplemental
        Interest Trust (unless the Swap Provider is the sole Defaulting Party or
        the
        sole Affected Party (as defined in the Swap Agreement)) owed to the Swap
        Provider;

       

      (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; and

       

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

       

      
        
          
          

        

        
          114

          
            

          

        

        
          
          

        

      

       

      SECTION
        3.10. Investment of Funds in the Investment Accounts.

       

      (a) The
        Servicer may direct, by means of written directions (which may be standing
        directions), any Depository Institution maintaining the Collection Account
        to
        invest the funds in the Collection 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 the 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 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
        Collection Account shall be for the benefit of the Servicer and shall be
        subject
        to its withdrawal in accordance with Section 3.09. The Servicer shall deposit
        in
        the Collection 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.

       

      
        
          
          

        

        
          115

          
            

          

        

        
          
          

        

      

       

      (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), shall, at the written
        direction of the 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 3.10 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 Servicer shall cause to be maintained for each Mortgaged
        Property 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 the related 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. The 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 (including, with respect to each second lien mortgage loan,
        the
        outstanding principal balance of the related first lien) at the time it became
        an REO Property, 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 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 Accepted Servicing Practices, 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 3.09, if
        received in respect of a Mortgage Loan, or in the REO Account, subject to
        withdrawal pursuant to Section 3.21, if received in respect of an REO Property.
        Any cost incurred by the 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 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, 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 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.

       

      
        
          
          

        

        
          116

          
            

          

        

        
          
          

        

      

       

      In
        the
        event that the 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 related 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 Servicer shall,
        in the event that there shall not have been maintained on the related Mortgaged
        Property or REO Property a policy complying with this Section 3.11, 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 related
        Mortgage Loans, the Servicer agrees to prepare and present, on behalf of
        itself,
        the Trustee, the Trust Fund, the Certificateholders, 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 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 related 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 Trustee.

       

      (c) The
        Servicer 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 Servicer would have been covered thereunder. The 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 Servicer 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.

       

      
        
          
          

        

        
          117

          
            

          

        

        
          
          

        

      

       

      The
        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 the Servicer under any primary mortgage insurance policies
        shall be deposited in the Collection Account, subject to withdrawal pursuant
        to
        Section 3.09 of this Agreement. Notwithstanding any provision to the
        contrary, the Servicer shall not have any responsibility with respect to
        a
        primary mortgage insurance policy unless the 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.

       

      (d) The
        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, the Servicer shall comply with the following
        conditions in connection with any such release of Insurance Proceeds in excess
        of $10,000:

       

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

       

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

       

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

       

      (e) The
        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, any amounts collected
        by the
        Servicer under any primary mortgage insurance policies shall be deposited
        in the
        Collection Account, subject to withdrawal pursuant to Section 3.09.
        Notwithstanding any provision to the contrary, the Servicer shall not have
        any
        responsibility with respect to a primary mortgage insurance policy unless
        the
        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. The Servicer shall provide the Master Servicer with
        a
        certificate of insurance of the fidelity bond or errors and omissions policy
        upon request.

       

      
        
          
          

        

        
          118

          
            

          

        

        
          
          

        

      

       

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

       

      The
        Servicer shall, to the extent it has knowledge of any conveyance of any related
        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 Servicer shall not exercise
        any such rights if prohibited by law from doing so. If the 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 Servicer shall 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 then current underwriting criteria of the Servicer for mortgage
        loans similar to the related Mortgage Loans. 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 or substitution of liability agreement
        will 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 otherwise required
        pursuant to the terms thereof. The Servicer shall notify the Trustee (or
        the
        Custodian) that any such substitution or assumption agreement has been completed
        by forwarding to the Trustee (or the 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 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 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.

       

      
        
          
          

        

        
          119

          
            

          

        

        
          
          

        

      

       

      SECTION
        3.13. Realization Upon Defaulted Mortgage Loans.

       

      (a) The
        Servicer shall use commercially reasonable 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. 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 Sections 3.09 and
        3.21.
        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 3.13 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 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 the 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 Servicer, subject to the Servicer’s right to be reimbursed
        therefor from the Collection Account as provided in Section 3.09(a)(ix),
        such
        right of reimbursement being prior to the rights of Certificateholders to
        receive any amount in the Collection Account received in respect of the affected
        Mortgage Loan or other Mortgage Loans serviced by the Servicer.

       

      
        
          
          

        

        
          120

          
            

          

        

        
          
          

        

      

       

      If
        the
        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 the 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 Servicer, subject to the Servicer’s right to be reimbursed
        therefor from the Collection Account as provided in Sections 3.09(a)(iii)
        or
        3.09(a)(ix), such right of reimbursement being prior to the rights of
        Certificateholders to receive any amount in the Collection Account received
        in
        respect of the affected Mortgage Loan or other Mortgage Loans serviced by
        the
        Servicer.

       

      (c) The
        Servicer shall have the right to purchase from REMIC I any defaulted Mortgage
        Loan serviced by it that is 90 days or more delinquent, which the Servicer
        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 the Servicer and the Trustee
        prior to purchase), at a price equal to the Purchase Price. The Purchase
        Price
        for any Mortgage Loan purchased hereunder shall be deposited in the Collection
        Account, and the Trustee, upon receipt of written certification from the
        Servicer of such deposit, shall release or cause to be released to the Servicer
        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 Servicer shall furnish and as shall be
        necessary to vest in the Servicer 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 Servicer for any related
        unreimbursed P&I Advances and Servicing Advances, pursuant to Section
        3.09(a)(ii) or (a)(iii); 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 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 Servicer pursuant to Section
        3.09(a)(iii). 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 Servicer
        for
        any related unreimbursed Servicing Advances or P&I Advances in accordance
        with Section 3.09(a)(ii) and any other amounts reimbursable to the Servicer
        pursuant to Section 3.09, and second, as part of the amounts to be transferred
        to the Distribution Account in accordance with Section 3.08(b). Excess proceeds,
        if any, from the liquidation of a Liquidated Mortgage Loan will be retained
        by
        the Servicer as additional servicing compensation pursuant to Section
        3.15.

       

      
        
          
          

        

        
          121

          
            

          

        

        
          
          

        

      

       

      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
        the Servicer of a notification that payment in full has been escrowed in
        a
        manner customary for such purposes for payment to Certificateholders on the
        next
        Distribution Date, the Servicer will promptly furnish to the Custodian, on
        behalf of the Trustee, two copies of a request for release substantially
        in the
        form attached to the 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 Collection Account have
        been or
        will be so deposited) and shall request that the Custodian, on behalf of
        the
        Trustee, deliver to the Servicer the related Mortgage File. Upon receipt
        of such
        certification and request, the Custodian, on behalf of the Trustee, shall
        within
        five (5) Business Days release the related Mortgage File to the Servicer
        and the
        Trustee and the Custodian shall have no further responsibility with regard
        to
        such Mortgage File. Upon any such payment in full, the Servicer is authorized,
        to give, as agent for the Trustee, as the mortgagee under the Mortgage that
        secured the Mortgage Loan, an instrument of satisfaction (or assignment of
        mortgage without recourse) regarding the Mortgaged Property subject to the
        Mortgage, which instrument of satisfaction or assignment, as the case may
        be,
        shall be delivered to the Person or Persons entitled thereto against receipt
        therefor of such payment, it being understood and agreed that no expenses
        incurred in connection with such instrument of satisfaction or assignment,
        as
        the case may be, shall be chargeable to the Collection Account, unless it
        shall
        represent a Servicing Advance.

       

      (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 Servicer (in form reasonably acceptable to
        the
        Trustee) and as are necessary to the prosecution of any such proceedings.
        The
        Custodian, on behalf of the Trustee, shall, upon the request of the Servicer,
        and delivery to the Custodian, on behalf of the Trustee, of two copies of
        a
        request for release signed by a Servicing Officer substantially in the form
        attached to the 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 Servicer. Such trust receipt
        shall
        obligate the Servicer to return the Mortgage File to the Custodian on behalf
        of
        the Trustee, when the need therefor by the Servicer no longer exists unless
        the
        Mortgage Loan shall be liquidated, in which case, upon receipt of a certificate
        of a Servicing Officer similar to that hereinabove specified, the Mortgage
        File
        shall be released by the Custodian, on behalf of the Trustee, to the
        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 Custodian, in accordance with the provisions of the Custodial Agreement,
        in
        the event the Servicer fails to do so.

       

      Upon
        written certification of a Servicing Officer, the Trustee shall execute and
        deliver to the 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 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.

       

      
        
          
          

        

        
          122

          
            

          

        

        
          
          

        

      

       

      SECTION
        3.15. Servicing Compensation.

       

      As
        compensation for its activities 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 3.22. In
        addition, the 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) and out of amounts derived from the operation and sale
        of an REO Property to the extent permitted by Section 3.21. 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 to the extent permitted herein.

       

      Additional
        servicing compensation in the form of Ancillary Income (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 3.09(a)(iv) to withdraw from the Collection Account and
        pursuant to Section 3.21(b) to withdraw from any REO Account, as additional
        servicing compensation, interest or other income earned on deposits therein,
        subject to Section 3.10. In addition, the Servicer shall be entitled to
        retain or withdraw from the Collection Account, pursuant to
        Section 3.09(a)(x), any Prepayment Interest Excess with respect to the
        Mortgage Loans serviced by it as additional servicing compensation. The Servicer
        shall be required to pay all expenses incurred by it in connection with its
        servicing activities hereunder and shall not be entitled to reimbursement
        therefor except as specifically provided herein.

       

      SECTION
        3.16. Collection Account Statements.

       

      Upon
        request, not later than fifteen (15) days after each Distribution Date, the
        Servicer shall forward to the Master Servicer and the Securities Administrator,
        the Trustee and the Depositor, a statement prepared by the institution at
        which
        the Collection Account is maintained setting forth the status of the 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 Collection Account. Copies of such statement and any
        similar statements provided by the Servicer 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 Servicer to the Securities Administrator.

       

      
        
          
          

        

        
          123

          
            

          

        

        
          
          

        

      

       

      SECTION
        3.17. Annual Statement as to Compliance.

       

      The
        Servicer shall deliver (and shall cause any Servicing Function Participant
        engaged by it to deliver) to the Master Servicer and to the Depositor on
        or
        before March 5 of each year, commencing in March 2007, an Officer’s Certificate
        (an “Annual Statement of Compliance”) stating, as to the signer thereof, that
        (A) a review of such party’s activities during the immediately preceding
        calendar year or applicable portion thereof and of the Servicer’s performance
        under this Agreement or such other applicable agreement in the case of a
        Servicing Function Participant, has been made under such officer’s supervision
        and (B) to the best of such officer’s knowledge or such other applicable
        agreement in the case of a Servicing Function Participant, based on such
        review,
        such party has fulfilled all its obligations under this Agreement, 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 the Servicer, any
        Servicing Function Participant engaged by the 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 the Servicer’s obligations hereunder or, in the case of a
        Servicing Function Participant, under such other applicable
        agreement.

       

      SECTION
        3.18. Assessments of Compliance and Attestation Reports.

       

      (a) On
        or before March 5 of each calendar year, commencing in 2007, the Servicer
        shall:

       

      (i) deliver
        to the Master Servicer and the Depositor a report regarding the Servicer’s
        assessment of compliance with the Relevant 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 Master Servicer and the Depositor and signed by an authorized
        officer of the Servicer, and shall address each of the applicable Relevant
        Servicing Criteria (wherein
        “investor” shall mean the Master Servicer).
        Notwithstanding the foregoing, neither Servicer nor any Servicing Function
        Participant engaged by the 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; provided however that,
        notwithstanding the foregoing, no Subcontractor will be required to deliver
        any
        assessments in any given year in which the Form 10-K is not required to be
        filed;

       

      (ii) deliver
        to the Master Servicer and the Depositor a report of a registered public
        accounting firm 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. Notwithstanding
        the foregoing, neither Servicer nor any Servicing Function Participant engaged
        by the Servicer shall be required to deliver or cause the delivery of such
        reports until March 31st in any given year so long as the Servicer has received
        written confirmation from the Depositor that a Form 10-K is not required
        to be
        filed in respect of the Trust for the preceding fiscal year provided however
        that, notwithstanding the foregoing, no Subcontractor will be required to
        deliver any reports in any given year in which the Form 10-K is not required
        to
        be filed; and 

       

      
        
          
          

        

        
          124

          
            

          

        

        
          
          

        

      

       

      (iii) if
        required by Regulation AB, cause each Sub-Servicer and each Subcontractor
        determined by the Servicer to be a Servicing Function Participant, to deliver
        to
        the Master Servicer and the Depositor an assessment of compliance and
        accountants’ attestation as and when provided in subsections (a) and (b) of this
        Section 3.18.

       

      (b) Each
        assessment of compliance provided by a Sub-Servicer pursuant to Section
        3.18(a)(i) shall address each of the applicable Relevant Servicing Criteria
        (wherein “investor” shall mean the Master Servicer) delivered to the Master
        Servicer concurrently with the execution of this Agreement or, in the case
        of a
        Sub-Servicer subsequently appointed as such, on or prior to the date of such
        appointment. An assessment of compliance provided by a Servicing Function
        Participant pursuant to Section 3.18(a)(iii) need not address any elements
        of
        the Relevant Servicing Criteria other than those specified by the Servicer
        pursuant to Section 3.02.

       

      If
        reasonably requested by the Master Servicer, the Servicer shall provide to
        the
        Master Servicer, evidence of the authorization of the person signing the
        certificate or statement provided pursuant to Sections 3.17, 3.18 or 3.19(a)
        of
        this Agreement.

       

      SECTION
        3.19. Annual Certification; Indemnification and Remedies; Additional
        Information.

       

      (a) On
        or before March 5 of each calendar year, commencing in 2007, the Servicer
        shall
        deliver, and cause each Sub-Servicer and Subcontractor described in Section
        3.18(a)(iii) above to deliver, to the Master Servicer, Depositor or any other
        Person that will be responsible for signing the certification (each, a
“Back-Up
        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), signed by the appropriate
        officer of the Servicer or such Sub-Servicer or Subcontractor, in the form
        attached hereto as Exhibit
        C;
        provided that such certification delivered by the Servicer may not be filed
        as
        an exhibit to, or included in, any filing with the Commission. The Servicer
        acknowledges that the party identified in the preceding sentence may rely
        on the
        certification provided by the Servicer in signing a Back-up Certification
        and
        filing such with the Commission.

       

      (b) The
        Servicer
        shall
        indemnify the Master Servicer and each of the following parties:
        the
        Sponsor
        and the Trust; each Person responsible for the execution or filing of any
        report
        required to be filed with the Commission, or for execution of a certification
        pursuant to Rule 13a-14(d) or Rule 15d-14(d) under the Exchange Act; each
        Person
        who controls any of such parties (within
        the meaning of Section 15 of the Securities Act and Section 20 of the Exchange
        Act);
        and the
        respective present and former directors, officers and employees of each of
        the
        foregoing and of the Depositor, and shall hold each of them harmless from
        and
        against any losses, damages, penalties, fines, forfeitures, legal fees and
        expenses and related costs, judgments, and any other costs, fees and expenses
        that any of them may sustain arising out of or based upon:

       

      
        
          
          

        

        
          125

          
            

          

        

        
          
          

        

      

       

      (i) (A) any
        untrue statement of a material fact contained or alleged to be contained
        in
any
        written information, written report, certification or other material
        provided
under
        this Agreement by
        or on
        behalf of the Servicer,
        or provided under this Agreement by or on behalf of any Sub-Servicer, Servicing
        Function Participant (collectively, the “Servicer Information”),
        or (2)
        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 (2) 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;

       

      (B) any
        failure by the Servicer, any Sub-Servicer or any Servicing
        Function Participant to
        deliver any information, report, certification, accountants’ letter or other
        material when and as required under this Agreement, including any failure
        by the
        Servicer to identify pursuant to Section 3.02(b) any Servicing Function
        Participant; or

       

      (C) any
        breach by the Servicer of a representation or warranty set forth in Section
        3.27(a) or in a writing furnished pursuant to Section 3.27(b) and made as
        of a
        date prior to the Closing Date, to the extent that such breach was not cured
        by
        the Closing Date, or any breach by the Servicer of a representation or warranty
        in a writing furnished pursuant to Section 3.27(b) to the extent made as
        of a
        date subsequent to the Closing Date.

       

      In
        the
        case of any failure of performance described in clause (b)(i)(B) of this
        Section, the Servicer shall promptly reimburse the Master Servicer, the
        Depositor, as applicable, and each Person responsible for the execution or
        filing of any report required to be filed with the Commission, or for execution
        of a certification pursuant to Rule 13a-14(d) or Rule 15d-14(d) under the
        Exchange Act, for all costs reasonably incurred by each such party in order
        to
        obtain the information,
        report, certification, accountants’ letter or other material not delivered as
        required by the Servicer, any
        Sub-Servicer or any Servicing Function Participant.

       

      (ii) (A) Any
        failure by the Servicer, any Sub-Servicer or any Servicing Function Participant
        to
        deliver any information, report, certification, accountants’ letter or other
        material when and as required under this Agreement, which continues unremedied
        for three Business Days after receipt by the Servicer and the applicable
        Sub-Servicer or Subcontractor, of written notice of such failure from the
        Master
        Servicer or Depositor shall, except as provided in clause (B) of this paragraph,
        constitute an Event of Default with respect to the Servicer under this
        Agreement, and shall entitle the Master Servicer or 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
        related thereto without payment (notwithstanding anything in this Agreement
        related thereto to the contrary) of any compensation to the Servicer (and
        appoint a successor servicer reasonably acceptable to the Master Servicer);
        provided,
        however,
        it is
        understood that the Servicer shall remain entitled to receive reimbursement
        for
        all unreimbursed Monthly Advances and Servicing Advances made by the Servicer
        under this Agreement. Notwithstanding anything to the contrary set forth
        herein,
        to the extent that any provision of this Agreement expressly provides for
        the
        survival of certain rights or obligations following termination of the Servicer
        as servicer, such provision shall be given effect.

       

      
        
          
          

        

        
          126

          
            

          

        

        
          
          

        

      

       

      (B) Any
        failure by the Servicer, any Sub-Servicer or any Servicing Function Participant
        to
        deliver any information, report, certification or accountants’ letter required
        under Regulation AB when and as required under Sections 3.17, 3.18 or 3.19(a),
        including any failure by the Servicer to identify a Servicing
        Function Participant,
        which
        continues unremedied for nine calendar days after receipt by the Servicer
        of
        written notice of such failure from the Master Servicer or Depositor shall
        constitute an Event of Default with respect to the Servicer under this
        Agreement, and shall entitle the Master Servicer or Depositor, as applicable,
        in
        its sole discretion to terminate the rights and obligations of the Servicer
        as
        servicer under this Agreement without payment (notwithstanding anything in
        this
        Agreement to the contrary) of any compensation to the Servicer; provided, however
        it is
        understood that the Servicer shall remain entitled to receive reimbursement
        for
        all unreimbursed Monthly Advances and Servicing Advances made by the Servicer
        under this Agreement. Notwithstanding anything to the contrary set forth
        herein,
        to the extent that any provision of this Agreement expressly provides for
        the
        survival of certain rights or obligations following termination of the Servicer
        as servicer, such provision shall be given effect.

       

      (C) The
        Servicer shall promptly reimburse the Master Servicer and the Depositor,
        as
        applicable, for all reasonable expenses incurred by the Master Servicer (or
        such
        designee) or the 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. The provisions of this paragraph
        shall
        not limit whatever rights the Servicer, the Master Servicer or the Depositor
        may
        have under other provisions of this Agreement or otherwise, whether in equity
        or
        at law, such as an action for damages, specific performance or injunctive
        relief.

       

      (c) The
        Trust will indemnify and hold harmless the Servicer, any Sub-Servicer, any
        Servicing Function Participant, and, each
        Person who controls any of such parties (within
        the meaning of Section 15 of the Securities Act and Section 20 of the Exchange
        Act), and the
        respective present and former directors, officers and employees of each of
        the
        foregoing from and against any losses, damages, penalties, fines, forfeitures,
        legal fees and expenses and related costs, judgments, and any other costs,
        fees
        and expenses that any of them may sustain arising out of or based upon
any
        untrue statement or alleged untrue statement of any material fact contained
        in
        any filing with the Commission or the omission or alleged omission to state
        in
        any filing with the Commission a
        material fact required to be stated or necessary to be stated in order to
        make
        the statements therein, in the light of the circumstances under which they
        were
        made, not misleading,
        in each
        case to the extent, but only to the extent, that such untrue statement, alleged
        untrue statement, omission, or alleged omission relates to any filing with
        the
        Commission other than the Servicer Information.

       

      
        
          
          

        

        
          127

          
            

          

        

        
          
          

        

      

       

      (d) If
        the indemnification provided for herein is unavailable or insufficient to
        hold
        harmless the indemnified party, then the indemnifying party 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 indemnifying party on the
        other.

       

      (e) The
        indemnifications provided for in Sections 3.19(b)
        and
        3.19(c) shall survive the termination of this Agreement or the termination
        of
        any party to this Agreement.

       

      (f) i)  As
        promptly as practicable following notice to or discovery by the Servicer,
        for
        the purpose of satisfying its reporting obligations under the Exchange Act,
        the
        Servicer shall (or shall cause each Sub-Servicer to) provide to the Master
        Servicer and the Depositor (as required by Regulation AB) prompt written
        notice
        of the occurrence of any of the following: (1) any Servicer Event of
        Default under the terms of this Agreement to the extent not known by the
        Master
        Servicer or the Depositor, (2) any merger, consolidation or sale of
        substantially all of the assets of the Servicer, (3) the Servicer’s entry
        into a written agreement with any Sub-Servicer and (4) any material litigation
        or governmental proceedings involving the Servicer that is material to the
        Certificateholders;

       

      (ii) Within
        ten (10) Business Days following request by the Master Servicer or the
        Depositor, the Servicer shall (or shall cause each Sub-Servicer to) provide
        to
        the Master Servicer and the Depositor, in writing reasonably required for
        compliance with Regulation AB, a description of any affiliation or relationship
        required to be disclosed under Item 1119 between the Servicer
        and any of the parties listed in Items 1119
        (a)(1)-(6) of
        Regulation AB that develops following the Closing Date (other than an
        affiliation or relationship that the Master Servicer, the Depositor or the
        issuing entity is required to disclose under Item 1119 of Regulation AB)
        no
        later than 15 calendar days prior to the date the Depositor is required to
        file
        its Form 10-K disclosing such affiliation or relationship. For purposes of
        the
        foregoing, the Servicer
        (1) shall be entitled to assume that the parties with whom affiliations or
        relations must be disclosed are the Sponsor, the Depositor, the Master Servicer,
        the Securities Administrator, the Trustee, the Custodian, the Swap Provider,
        the
        Cap Counterparty, and New Century Mortgage Corporation if it provides a written
        request (which may be by e-mail)
        to the Depositor or Master Servicer, as applicable, requesting such confirmation
        and either obtains such confirmation or receives no response within three
        (3)
        Business Days, (2) shall not be obligated to disclose any affiliations or
        relationships that may develop after the Closing Date with any parties not
        identified to the Servicer
        in writing within ten days in advance of the Securitization Transaction,
        and (3)
        shall be entitled to rely upon any written identification of parties provided
        by
        the Depositor, the Master Servicer or any master servicer or provided in
        (1)
        above;

       

      
        
          
          

        

        
          128

          
            

          

        

        
          
          

        

      

       

      (iii) If
        the Servicer has knowledge of the occurrence of any of the events described
        in
        this clause (iii), 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, the
        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: 

       

      (A) any
        modifications, extensions or waivers of Mortgage Loan terms, fees, penalties
        or
        payments during the distribution period;

       

      (B) material
        breaches of Mortgage Loan representations or warranties or servicer transaction
        covenants; and

       

      (C) information
        regarding any Mortgage Loan changes (such as, additions, substitutions or
        repurchases).

       

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

       

      SECTION
        3.20. Access to Certain Documentation.

       

      The
        Servicer shall provide to the Office of Thrift Supervision, the FDIC, and
        any
        other federal or state banking or insurance regulatory authority that may
        exercise authority over any Certificate Owner, access to the documentation
        regarding the related 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
        Servicer designated by it. Nothing in this Section 3.20 shall limit the
        obligation of the Servicer to comply with any applicable law prohibiting
        disclosure of information regarding the Mortgagors and the failure of the
        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 the Servicer to collect, create, collate or otherwise
        generate any information that it does not generate in its usual course of
        business. The Servicer 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. 

       

      
        
          
          

        

        
          129

          
            

          

        

        
          
          

        

      

       

      SECTION
        3.21. Title, Management and Disposition of REO Property.

       

      (a) The
        deed or certificate of sale of any REO Property related to a Mortgage Loan
        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 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 860(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 the 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 (3)
        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.
        The 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) The
        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 Servicer shall be permitted to allow the Collection
        Account to serve as the REO Account, subject to the maintenance of separate
        ledgers for each REO Property. The Servicer shall be entitled to retain or
        withdraw any interest income paid on funds deposited in the related 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 related to a Mortgage Loan serviced by it
        as
        are consistent with the manner in which the Servicer manages and operates
        similar property owned by it or any of its Affiliates, all on such terms
        and for
        such period as the Servicer deems to be in the best interests of
        Certificateholders. 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 (1)
        Business Day after the Servicer’s receipt thereof, and shall thereafter deposit
        in the REO Account in no event more than two (2) Business Days after the
        deposit
        of good funds into the clearing account, all revenues received by it with
        respect to an REO Property related to a Mortgage Loan serviced by it 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;

       

      
        
          
          

        

        
          130

          
            

          

        

        
          
          

        

      

       

      (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 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.

       

      Subject
        to compliance with applicable laws and regulations as shall at any time be
        in
        force, and notwithstanding the foregoing, the 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 Servicer has obtained an Opinion of Counsel, provided
        to
        the 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 the Servicer may take such actions as are specified in such Opinion
        of
        Counsel.

       

      The
        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 the Servicer
        as soon as practicable, but in no event later than thirty (30) days following
        the receipt thereof by such Independent Contractor;

       

      
        
          
          

        

        
          131

          
            

          

        

        
          
          

        

      

       

      (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) 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 Independent
        Contractor performing services for it related to its duties and obligations
        hereunder for indemnification of the Servicer by such Independent Contractor,
        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 Independent Contractor, irrespective of whether the Servicer’s
        compensation pursuant to Section 3.15 is sufficient to pay such fees. Any
        such
        agreement shall include a provision that such agreement may be immediately
        terminated by any successor Servicer without fee, in the event the Servicer
        shall for any reason, no longer be the Servicer of the Mortgage Loans (including
        termination due to the Servicer Event of Default).

       

      (d) In
        addition to the withdrawals permitted under Section 3.21(c), the Servicer
        may
        from time to time make withdrawals from the 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 other advances made in respect of such REO Property or the related
        Mortgage Loan. On the Servicer Remittance Date, the Servicer shall withdraw
        from
        each REO Account and deposit into the Distribution Account in accordance
        with
        Section 3.08(d)(ii), for distribution on the related Distribution Date in
        accordance with Section 5.01, the income from the related REO Property received
        during the prior calendar month, net of any withdrawals made pursuant to
        Section
        3.21(c) or this Section 3.21(d).

       

      (e) Subject
        to the time constraints set forth in Section 3.21(a), each REO Disposition
        shall
        be carried out by the Servicer at such price and upon such terms and conditions
        as the 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 Servicer as provided above, shall be deposited in
        the
        Distribution Account in accordance with Section 3.08(d)(ii) 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. 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).

       

      
        
          
          

        

        
          132

          
            

          

        

        
          
          

        

      

       

      (g) The
        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 the Servicer in Respect of Prepayment Interest
        Shortfalls; Relief Act Interest Shortfalls.

       

      The
        Servicer shall deliver to the Securities Administrator for deposit into the
        Distribution Account 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 prepayments in full on the related Mortgage
        Loans for the related Distribution Date resulting solely from voluntary
        Principal Prepayments received by the Servicer during the portion of the
        related
        Prepayment Period occurring between the sixteenth (16th)
        day of
        the month preceding the month in which the related Distribution Date occurs
        and
        ending on the last day of such month and (ii) the aggregate amount of the
        related Servicing Fees payable to Servicer on such Distribution Date with
        respect to the related Mortgage Loans. The Servicer shall not have the right
        to
        reimbursement for any amounts remitted to the Securities Administrator in
        respect of this Section 3.22. The Servicer 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 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 Stated 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 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 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, N.A., in trust for the registered holders of ACE Securities Corp.
        Home Equity Loan Trust, Series 2006-NC2, Asset Backed Pass-Through
        Certificates.” On the Closing Date, the Depositor will deposit, or cause to be
        deposited, into the Reserve Fund $1,000. In addition, the amount deposited
        in
        the Reserve Fund shall be increased by any payments received by the Securities
        Administrator under the Group I Cap Contract and deposited into the Reserve
        Fund
        for the benefit of the Class A-1 Certificates and the Mezzanine Certificates
        and
        under the Group II Cap Contract and deposited in the Reserve Fund for the
        benefit of the Class A-2 Certificates and the Mezzanine Certificates.

       

      
        
          
          

        

        
          133

          
            

          

        

        
          
          

        

      

       

      (b) On
        each Distribution Date, the Securities Administrator shall deposit into the
        Reserve Fund the amounts described in Section 5.01(c)(7)(vi), rather than
        distributing such amounts to the Supplemental Interest Trust (to pay any
        Swap
        Termination Payment owed to the Swap Provider due to a Swap Provider Trigger
        Event pursuant to the Swap Agreement) pursuant to Section 5.01(c)(7)(vii)
        and to
        the Class CE Certificateholders pursuant to Section 5.01(c)(7)(viii). 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(c). 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 Certificateholders,
        from amounts otherwise distributable to the Class CE 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 Certificates unless and until
        the date when either (a) there is more than one Class CE Certificateholder
        or
        (b) any Class of Certificates in addition to the Class CE 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 Master Servicer 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 and any amounts paid to the Reserve Fund from the
        Cap
        Contracts) shall be treated as amounts distributed by REMIC III to the Holders
        of the Class CE 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 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 Certificate, each Class CE 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 Certificateholders. By accepting a Class CE Certificate,
        each
        Class CE 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.

       

      
        
          
          

        

        
          134

          
            

          

        

        
          
          

        

      

       

      (e) At
        the direction of the Holders of a majority in Percentage Interest in the
        Class
        CE 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
        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 holders of
        the
        Class A Certificates and the Mezzanine Certificates to receive payments from
        the
        Reserve Fund and the Supplemental Interest Trust in respect of any Net WAC
        Rate
        Carryover Amount shall be assigned a value of $45,000.

       

      SECTION
        3.25. Advance Facility.

       

      (a) Notwithstanding
        anything to the contrary contained herein, (i) the 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) the 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 the
        Servicer pursuant to this Agreement and (ii) the Servicer is hereby authorized
        to assign its rights to the Servicing Fee (which rights shall terminate upon
        the
        resignation, termination or removal of the 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 Servicer may enter into an Advance Facility, but the
        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 Servicer’s behalf, the 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.

       

      
        
          
          

        

        
          135

          
            

          

        

        
          
          

        

      

       

      (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
        related Mortgage Loans for which the Servicer would be permitted to reimburse
        itself in accordance with this Agreement, assuming the Servicer had made
        the
        related P&I Advance(s) and/or Servicing Advance(s).

       

      (c) The
        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
        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 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 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 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 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 the 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) the 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 the Servicer and the lender or the payment of any amount under an
        Advance Facility.

       

      
        
          
          

        

        
          136

          
            

          

        

        
          
          

        

      

       

      (f) The
        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. Indemnification.

       

      The
        Servicer agrees to indemnify the 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 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 REMIC
        I therefor.

       

      SECTION
        3.27. Additional Representations and Warranties.

       

      (a) The
        Servicer shall be deemed to represent to the Master Servicer and to the
        Depositor, as of the date on which information is first provided to the Master
        Servicer or the Depositor under Section 3.19(f) that, except as disclosed
        in
        writing to the 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 for mortgage loans of a type
        similar to the Mortgage Loans
        have occurred during the three-year period immediately preceding the Closing
        Date; (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;
        and (vi) there are no material
        legal or governmental proceedings pending (or known to be contemplated) against
        the Servicer or any Sub-Servicer.

       

      
        
          
          

        

        
          137

          
            

          

        

        
          
          

        

      

       

      (b) If
        so requested by the Master Servicer or the Depositor on any date following
        the
        date
        on which information is first provided to the Master Servicer or the Depositor
        under Section 3.19(f),
        the Servicer shall, within ten Business Days following such request, confirm
        in
        writing the accuracy of the representations and warranties set forth in
        subsection (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.

       

      
        
          
          

        

        
          138

          
            

          

        

        
          
          

        

      

       

      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 the Servicer under this Agreement to service and
        administer the related Mortgage Loans in accordance with the terms of this
        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
        Servicer as necessary from time-to-time to carry out the Master Servicer’s
        obligations hereunder, shall receive, review and evaluate all reports,
        information and other data provided to the Master Servicer by the Servicer
        and
        shall cause the Servicer to perform and observe the covenants, obligations
        and
        conditions to be performed or observed by the Servicer under this Agreement.
        The
        Master Servicer shall independently and separately monitor the Servicer’s
        servicing activities with respect to each Mortgage Loan, reconcile the results
        of such monitoring with such information provided in the previous sentence
        on a
        monthly basis and coordinate corrective adjustments to the 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 the Servicer to the Distribution Account pursuant to
        the
        terms hereof based on information provided to the Master Servicer by the
        Servicer.

       

      The
        Trustee shall furnish the Servicer and the Master Servicer with any limited
        powers of attorney and other documents in form acceptable to it necessary
        or
        appropriate to enable the Servicer and the Master Servicer to service and
        administer the Mortgage Loans and REO Properties. The Trustee shall have
        no
        responsibility for any action of the Master Servicer or the Servicer pursuant
        to
        any such limited power of attorney and shall be indemnified by the Master
        Servicer or the 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 Custodian and the Securities Administrator shall provide access
        to
        the records and documentation in possession of the Trustee, the Custodian
        or the
        Securities Administrator regarding the 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 Custodian or the Securities Administrator; provided,
        however, that, unless otherwise required by law, none of the Trustee, the
        Custodian 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 Custodian 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 Custodian’s or the Securities
        Administrator’s actual costs.

       

      
        
          
          

        

        
          139

          
            

          

        

        
          
          

        

      

       

      The
        Trustee shall execute and deliver to the Servicer 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 Servicer or the Master Servicer to assure such continuing
        treatment. In particular, the Trustee shall not (a) sell or permit the sale
        of
        all or any portion of the Mortgage Loans or of any investment of deposits
        in an
        Account unless such sale is as a result of a repurchase of the Mortgage Loans
        pursuant to this Agreement or the Trustee has received a REMIC Opinion prepared
        at the expense of the Trust Fund; and (b) other than with respect to a
        substitution pursuant to the Mortgage Loan Purchase Agreement or
        Section 2.03 of this Agreement, as applicable, accept any contribution to
        any REMIC after the Startup Day without receipt of an Opinion of Counsel
        stating
        that such contribution will not result in an Adverse REMIC Event as defined
        in
        Section 11.01(f).

       

      SECTION
        4.03. Monitoring of Servicer.

       

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

       

      (b) The
        Master Servicer, for the benefit of the Trustee and the Certificateholders,
        shall enforce the obligations of the Servicer under this Agreement and shall,
        in
        the event that the Servicer fails to perform its obligations in accordance
        with
        this Agreement, subject to this Section and Article VIII, notify the Trustee
        and
        the Trustee shall terminate the rights and obligations of the Servicer hereunder
        in accordance with the provisions of Article VIII. In the event the rights
        and
        obligations of the Servicer (or any successor thereto) are terminated, the
        Master Servicer shall act as servicer of the Mortgage Loans or a successor
        servicer shall be appointed in accordance with the provisions of Article
        VIII.
        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. The Master Servicer shall pay the costs of such enforcement at its
        own
        expense, provided that the Master Servicer shall not be required to prosecute
        or
        defend any legal action except to the extent that the Master Servicer shall
        have
        received reasonable indemnity for its costs and expenses in pursuing such
        action.

       

      
        
          
          

        

        
          140

          
            

          

        

        
          
          

        

      

       

      (c) The
        Master Servicer shall be entitled to be reimbursed by the Servicer (or from
        amounts on deposit in the Distribution Account if the 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
        successor servicer to correct any errors or insufficiencies in the servicing
        data or otherwise to enable the successor servicer to service the Mortgage
        Loans
        properly and effectively, upon presentation of reasonable documentation of
        such
        costs and expenses.

       

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

       

      (e) If
        the Master Servicer acts as successor to the Servicer, it will not assume
        any
        liability for the representations and warranties of the terminated
        Servicer.

       

      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 the Servicer to) knowingly or intentionally take any action, or fail
        to
        take (or fail to cause to be taken) any action reasonably within its control
        and
        the scope of duties more specifically set forth herein, that, under the REMIC
        Provisions, if taken or not taken, as the case may be, would cause REMIC
        I,
        REMIC II or REMIC III 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, REMIC II or REMIC III to fail to qualify as a REMIC or result in
        the
        imposition of a tax upon REMIC I, REMIC II or REMIC III, 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 Servicer to execute
        and
        deliver instruments of satisfaction or cancellation, or of partial or full
        release or discharge, and to foreclose upon or otherwise liquidate Mortgaged
        Property, and to appeal, prosecute or defend in any court action relating
        to the
        Mortgage Loans or the Mortgaged Property, in accordance with this Agreement
        and
        the Trustee shall execute and deliver such other documents prepared and
        delivered to it and reasonably acceptable to it, as the Master Servicer,
        the
        Servicer may request, to enable the Master Servicer to master service and
        administer the Mortgage Loans and carry out its duties hereunder, in each
        case
        in accordance with Accepted Master Servicing Practices (and the Trustee shall
        have no liability for misuse of any such powers of attorney by the Master
        Servicer or the Servicer and shall be indemnified by the Master Servicer
        or the
        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). 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.

       

      
        
          
          

        

        
          141

          
            

          

        

        
          
          

        

      

       

      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 Servicer to enforce such clauses in accordance with
        this 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 and, as a consequence, a Mortgage Loan is assumed, the original
        Mortgagor may be released from liability in accordance with this
        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 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
        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, shall
        cause the Servicer to provide access to information and documentation regarding
        the Mortgage Loans to the Trustee, its agents and accountants at any time
        upon
        reasonable request and during normal business hours, and to Certificateholders
        that are savings and loan associations, banks or insurance companies, the
        Office
        of Thrift Supervision, the FDIC and the supervisory agents and examiners
        of such
        Office and Corporation or examiners of any other federal or state banking
        or
        insurance regulatory authority if so required by applicable regulations of
        the
        Office of Thrift Supervision or other regulatory authority, such access to
        be
        afforded without charge but only upon reasonable request in writing and during
        normal business hours at the offices of the Master Servicer designated by
        it. In
        fulfilling such a request the Master Servicer shall not be responsible for
        determining the sufficiency of such information.

       

      
        
          
          

        

        
          142

          
            

          

        

        
          
          

        

      

       

      (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 the Servicer
        under this 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. It is understood and agreed that such
        insurance shall be with insurers meeting the eligibility requirements set
        forth
        in Section 3.11 of this Agreement and that no earthquake or other additional
        insurance is to be required of any Mortgagor or to be maintained on property
        acquired in respect of a defaulted loan, other than pursuant to such applicable
        laws and regulations as shall at any time be in force and as shall require
        such
        additional insurance.

       

      SECTION
        4.09. Presentment of Claims and Collection of Proceeds.

       

      The
        Master Servicer shall enforce the Servicer’s obligations under this Agreement to
        prepare and present on behalf of the Trustee and the Certificateholders all
        claims under any 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 the Servicer to take (to the extent
        such action is prohibited by this 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, the Servicer would have been covered
        thereunder. The Master Servicer shall use its best reasonable efforts to
        cause
        the Servicer 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. The Master Servicer shall not, and shall not permit the Servicer
        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.

       

      
        
          
          

        

        
          143

          
            

          

        

        
          
          

        

      

       

      (b) The
        Master Servicer agrees to cause the Servicer 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 Custodian, 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 Servicer have otherwise
        fulfilled their respective obligations under this Agreement, the Trustee
        or the
        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 Custodial Agreement. The Master Servicer shall promptly deliver or cause
        to
        be delivered to the Trustee or the 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.

       

      The
        Master Servicer shall cause the Servicer 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.

       

      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. The compensation payable to the
        Master Servicer in respect of any Distribution Date shall be reduced in
        accordance with Section 4.19. 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.

       

      
        
          
          

        

        
          144

          
            

          

        

        
          
          

        

      

       

      SECTION
        4.14. REO Property.

       

      (a) In
        the event the Trust Fund acquires ownership of any REO Property in respect
        of
        any 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 Servicer to sell, any REO Property as
        expeditiously as possible and in accordance with the provisions of this
        Agreement or. Further, the Master Servicer shall cause the Servicer 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
        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 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 Servicer to protect
        and
        conserve, such REO Property in the manner and to the extent required by this
        Agreement in accordance with the REMIC Provisions and in a manner that does
        not
        result in a tax on “net income from foreclosure property” or cause such REO
        Property to fail to qualify as “foreclosure property” within the meaning of
        Section 860G(a)(8) of the Code.

       

      (b) The
        Master Servicer shall cause the Servicer to deposit all funds collected and
        received in connection with the operation of any REO Property in the REO
        Account.

       

      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. 

       

      
        
          
          

        

        
          145

          
            

          

        

        
          
          

        

      

       

      (b) The
        Master Servicer shall include all annual statements of compliance received
        by it
        from the Servicer 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 other 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 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 Administer
        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. 

       

      
        
          
          

        

        
          146

          
            

          

        

        
          
          

        

      

       

      (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 Servicer 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 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 a report on assessment of compliance
        pursuant to this Section 4.16(e) 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. 

       

      
        
          
          

        

        
          147

          
            

          

        

        
          
          

        

      

       

      (b) Promptly
        after receipt of 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 furnished to it from
        the
        Servicer 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 such parties is terminated, assigns its rights
        and duties under, or resigns pursuant to the terms of this Agreement, or
        any
        applicable custodial agreement or servicing or sub-servicing 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 officer of the Master Servicer in charge of the master
        servicing function shall serve as the senior 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 any such party or any Servicing Function Participant engaged by such
        party
        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.
        

       

      
        
          
          

        

        
          148

          
            

          

        

        
          
          

        

      

       

      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 Servicer 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 Servicer and (ii) the aggregate amount of the
        compensation payable to the Master Servicer for such Distribution Date in
        accordance with Section 4.13, without reimbursement therefor.

       

      SECTION
        4.20. Prepayment Penalty Verification.

       

      On
        or
        prior to each Servicer Remittance Date, the Servicer shall provide in an
        electronic format acceptable to 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
        Servicer and shall notify the Servicer if the Master Servicer has determined
        that the 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 Servicer agrees with the verified amounts, the Servicer
        shall adjust the immediately succeeding Servicer Report and the amount remitted
        to the Securities Administrator with respect to prepayments accordingly.
        If the
        Servicer disagrees with the determination of the Master Servicer, the Servicer
        shall, within five (5) 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 Servicer and the Master
        Servicer shall cooperate to resolve any discrepancy on or prior to the
        immediately succeeding Servicer Remittance Date, and the Servicer will indicate
        the effect of such resolution on the Servicer Report and shall adjust the
        amount
        remitted with respect to prepayments on such Servicer Remittance Date
        accordingly.

       

      
        
          
          

        

        
          149

          
            

          

        

        
          
          

        

      

       

      During
        such time as the 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 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 Servicer.

       

      
        
          
          

        

        
          150

          
            

          

        

        
          
          

        

      

       

      ARTICLE
        V

       

      PAYMENTS
        TO CERTIFICATEHOLDERS

       

      SECTION
        5.01. Distributions.

       

      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 and distributed to the holders of the Class R Certificates (in
        respect
        of the Class R-I Interest), as the case may be:

       

      (a) (1) With
        respect to the Group I Mortgage Loans:

       

      (i) to
        Holders of REMIC I Regular Interest I, and each of REMIC I Regular Interest
        I-1-A through I-57-B, pro
        rata,
        in an
        amount equal to (A) Uncertificated Interest for such REMIC I Regular Interests
        for such Distribution Date, plus (B) any amounts payable in respect thereof
        remaining unpaid from previous Distribution Dates;

       

      (ii) to
        the extent of amounts remaining after the distributions made pursuant to
        clause
        (i) above, to the Holders of REMIC I Regular Interest I, an amount of principal
        shall be distributed to such Holders until the Uncertificated Balance of
        REMIC I
        Regular Interest I is reduced to zero; and

       

      (iii) to
        the extent of amounts remaining after the distributions made pursuant to
        clause
        (i) and (ii) above, payments of principal shall be allocated to REMIC I Regular
        interests I-1-A through I-57-B starting with the lowest numerical denomination
        until the Uncertificated Balance of each such REMIC I Regular Interest is
        reduced to zero, provided that, for REMIC I Regular Interests with the same
        numerical denomination, such payments of principal shall be allocated
pro
        rata
        between
        such REMIC I Regular Interests.

       

      (2) With
        respect to the Group II Mortgage Loans:

       

      (i) to
        Holders of REMIC I Regular Interest II and each of REMIC I Regular Interest
        II-1-A through II-57-B, pro
        rata,
        in an
        amount equal to (A) Uncertificated Interest for such REMIC I Regular Interests
        for such Distribution Date, plus (B) any amounts payable in respect thereof
        remaining unpaid from previous Distribution Dates.

       

      (ii) to
        the extent of amounts remaining after the distributions made pursuant to
        clause
        (i) above, to the Holders of REMIC I Regular Interest II, an amount of principal
        shall be distributed to such Holders until the Uncertificated Balance of
        REMIC I
        Regular Interest II is reduced to zero; and

       

      (iii) to
        the extent of amounts remaining after the distributions made pursuant to
        clause
        (i) and (ii) above, payments of principal shall be allocated to REMIC I Regular
        interests II-1-A through II-57-B starting with the lowest numerical denomination
        until the Uncertificated Balance of each such REMIC I Regular Interest is
        reduced to zero, provided that, for REMIC I Regular Interests with the same
        numerical denomination, such payments of principal shall be allocated
pro
        rata
        between
        such REMIC I Regular Interests.

       

      
        
          
          

        

        
          151

          
            

          

        

        
          
          

        

      

       

      (b) to
        the Holders of REMIC I Regular Interest I-57-B, all amounts representing
        Prepayment Charges in respect of the Group I Mortgage Loans received during
        the
        related Prepayment Period and to the Holders of REMIC I Regular Interest
        II-57-B, all amounts representing Prepayment Charges in respect of the Group
        II
        Mortgage Loans received during the related Prepayment Period.

       

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

       

      (i) first
        to the Holders of REMIC II Regular Interest IO, in an amount equal to (A)
        Uncertificated Interest for such REMIC II Regular Interest for such Distribution
        Date, plus (B) any amounts in respect thereof remaining unpaid from previous
        Distribution Dates and second, to the Holders of REMIC II Regular Interest
        AA,
        REMIC II Regular Interest A-1, REMIC II Regular Interest A-2A, REMIC II Regular
        Interest A-2B, REMIC II Regular Interest A-2C, REMIC II Regular Interest
        A-2D,
        REMIC II Regular Interest M-1, REMIC II Regular Interest M-2, REMIC II Regular
        Interest M-3, REMIC II Regular Interest M-4, REMIC II Regular Interest M-5,
        REMIC II Regular Interest M-6, REMIC II Regular Interest M-7, REMIC II Regular
        Interest M-8, REMIC II Regular Interest M-9, REMIC II Regular Interest M-10,
        REMIC II Regular Interest M-11, REMIC II Regular Interest P and REMIC II
        Regular
        Interest ZZ, 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 II
        Regular
        Interest ZZ shall be reduced when the REMIC II Overcollateralization Amount
        is
        less than the REMIC II Required Overcollateralization Amount, by the lesser
        of
        (x) the amount of such difference and (y) the Maximum ZZ Uncertificated Interest
        Deferral Amount and such amount will be payable to the Holders of REMIC II
        Regular Interest A-1, REMIC II Regular Interest A-2A, REMIC II Regular Interest
        A-2B, REMIC II Regular Interest A-2C, REMIC II Regular Interest A-2D, REMIC
        II
        Regular Interest M-1, REMIC II Regular Interest M-2, REMIC II Regular Interest
        M-3, REMIC II Regular Interest M-4, REMIC II Regular Interest M-5, REMIC
        II
        Regular Interest M-6, REMIC II Regular Interest M-7, REMIC II Regular Interest
        M-8, REMIC II Regular Interest M-9, REMIC II Regular Interest M-10 and REMIC
        II
        Regular Interest M-11 in the same proportion as the Overcollateralization
        Increase Amount is allocated to the Corresponding Certificates and the
        Uncertificated Balance of REMIC II Regular Interest ZZ shall be increased
        by
        such amount;

       

      (ii) to
        Holders of REMIC II Regular Interest I-SUB, REMIC II Regular Interest I-GRP,
        REMIC II Regular Interest II-SUB, REMIC II Regular Interest II-GRP, and REMIC
        II
        Regular Interest XX, 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;

       

      
        
          
          

        

        
          152

          
            

          

        

        
          
          

        

      

       

      (iii) to
        the Holders of REMIC II Regular Interests, in an amount equal to the remainder
        of the REMIC II Marker Allocation Percentage of the available funds 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 II Regular Interest AA, until the
        Uncertificated Balance of such REMIC II Regular Interest is reduced to
        zero;

       

      (B) 2.00%
        of such remainder, first, to the Holders of REMIC II Regular Interest A-1,
        REMIC
        II Regular Interest A-2A, REMIC II Regular Interest A-2B, REMIC II Regular
        Interest A-2C, REMIC II Regular Interest A-2D, REMIC II Regular Interest
        M-1,
        REMIC II Regular Interest M-2, REMIC II Regular Interest M-3, REMIC II Regular
        Interest M-4, REMIC II Regular Interest M-5, REMIC II Regular Interest M-6,
        REMIC II Regular Interest M-7, REMIC II Regular Interest M-8, REMIC II Regular
        Interest M-9, REMIC II Regular Interest M-10 and REMIC II Regular Interest
        M-11,
        1% of and in the same proportion as principal payments are allocated to the
        Corresponding Certificates, until the Uncertificated Balances of such REMIC
        II
        Regular Interests are reduced to zero and second to the Holders of REMIC
        II
        Regular Interest ZZ, until the Uncertificated Balance of such REMIC II Regular
        Interest is reduced to zero;

       

      (C) to
        the Holders of REMIC II Regular Interest P, (1) 100% of the Prepayment Charges
        deemed distributed on REMIC I Regular Interest I-57-B and REMIC I Regular
        Interest II-57-B 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 Certificate, in respect of
        the
        Class R-II 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 II Regular Interest AA and REMIC II Regular Interest ZZ,
        respectively.

       

      (iv) to
        the Holders of REMIC II Regular Interests, in an amount equal to the remainder
        of the REMIC II Sub WAC Allocation Percentage of available funds for such
        Distribution Date after the distributions made pursuant to clause (ii) above,
        such that distributions of principal shall be deemed to be made to the REMIC
        II
        Regular Interests first, so as to keep the Uncertificated Balance of each
        REMIC
        II Regular Interest ending with the designation “GRP” equal to 0.01% of the
        aggregate Stated Principal Balance of the Mortgage Loans in the related loan
        group; second, to each REMIC II Regular Interest ending with the designation
        “SUB,” so that the Uncertificated Balance of each such REMIC II Regular Interest
        is equal to 0.01% of the excess of (x) the aggregate Stated Principal Balance
        of
        the Mortgage Loans in the related loan group over (y) the current Certificate
        Principal Balance of the Class A Certificate in the related loan group (except
        that if any such excess is a larger number than in the preceding distribution
        period, the least amount of principal shall be distributed to such REMIC
        II
        Regular Interests such that the REMIC II Subordinated Balance Ratio is
        maintained); and third, any remaining principal to REMIC II Regular Interest
        XX.

       

      
        
          
          

        

        
          153

          
            

          

        

        
          
          

        

      

       

      (v) Notwithstanding
        the distributions described in Section 5.01(c)(1), distributions of funds
        shall
        be made to Certificateholders only in accordance with Section 5.01(c)(2)
        through
        (7).

       

      (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
        Group I 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 Group I Interest Remittance Amount remaining for such Distribution
        Date:

       

      first,
        commencing on the Distribution Date in April 2007, to the Supplemental Interest
        Trust, an amount equal to the Group I Allocation Percentage of (i) any Net
        Swap
        Payment owed to the Swap Provider and (ii) any Swap Termination Payment owed
        to
        the Swap Provider not due to a Swap Provider Trigger Event;

       

      second,
        to the
        Holders of the Class A-1 Certificates, the Senior Interest Distribution Amount
        allocable to the Class A-1 Certificates; and

       

      third,
        concurrently, to the Holders of the Class A-2A, Class A-2B, Class A-2C and
        Class
        A-2D Certificates, the Senior Interest Distribution Amount allocable to each
        such Class, to the extent remaining unpaid after the distribution of the
        Group
        II Interest Remittance Amount as set forth in Section 5.01(c)(3) below on
        a pro
        rata basis, based on the entitlement of each such Class.

       

      (3) On
        each Distribution Date, the Securities Administrator shall withdraw from
        the
        Distribution Account to the extent on deposit therein an amount equal to
        the
        Group II 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 Group II Interest Remittance Amount remaining for such Distribution
        Date:

       

      first,
        commencing on the Distribution Date in April 2007, to the Supplemental Interest
        Trust, an amount equal to the Group II Allocation Percentage of (i) any Net
        Swap
        Payment owed to the Swap Provider and (ii) any Swap Termination Payment owed
        to
        the Swap Provider not due to a Swap Provider Trigger Event;

       

      second, concurrently,
        to the Holders of the Class A-2A, Class A-2B, Class A-2C and Class A-2D
        Certificates, the Senior Interest Distribution Amount allocable to each such
        Class, on a pro rata basis, based on the entitlement of each such Class;
        and

       

      
        
          
          

        

        
          154

          
            

          

        

        
          
          

        

      

       

      third,
        to the
        Holders of the Class A-1 Certificates, the Senior Interest Distribution Amount
        allocable to the Class A-1 Certificates, to the extent remaining unpaid after
        the distribution of the Group I Interest Remittance Amount as set forth in
        Section 5.01(c)(2) above.

       

      (4) On
        each Distribution Date, the Securities Administrator shall withdraw from
        the
        Distribution Account to the extent on deposit therein an amount equal to
        the
        Group I Interest Remittance Amount and the Group II Interest Remittance Amount
        remaining after the distributions required by clauses (2) and (3) above and
        make
        the following disbursements and transfers in the order of priority described
        below, in each case to the extent of the Group I Interest Remittance Amount
        and
        Group II Interest Remittance Amount remaining for such Distribution
        Date:

       

      sequentially,
        to the Holders of the Class M-1, Class M-2, Class M-3, Class M-4, Class M-5,
        Class M-6, Class M-7, Class M-8, Class M-9, Class M-10 and Class M-11
        Certificates, in that order, to the extent of the Interest Distribution Amount
        allocable to each such Class.

       

      (5) 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
        Group I Principal Distribution Amount and the Group II Principal Distribution
        Amount and distribute to the Certificateholders the following amounts, in
        the
        following order of priority:

       

      (i) The
        Group I Principal Distribution Amount shall be distributed in the following
        order of priority:

       

      first,
        commencing on the Distribution Date in April 2007, to the Supplemental Interest
        Trust, an amount equal to the Group I Allocation Percentage of (i) any Net
        Swap
        Payment owed to the Swap Provider and (ii) any Swap Termination Payment owed
        to
        the Swap Provider not due to a Swap Provider Trigger Event to the extent
        not
        paid from the Interest Remittance Amount on such Distribution Date;

       

      second,
        to the
        Holders of the Class A-1 Certificates until the Certificate Principal Balance
        of
        the Class A-1 Certificates has been reduced to zero; and

       

      third,
        sequentially, to the Holders of the Class A-2A, Class A-2B, Class A-2C and
        Class
        A-2D Certificates, in that order, after taking into account the distribution
        of
        the Group II Principal Distribution Amount as described in Section
        5.01(c)(5)(ii) below, until the Certificate Principal Balance of each such
        Class
        has been reduced to zero. 

       

      
        
          
          

        

        
          155

          
            

          

        

        
          
          

        

      

       

      (ii) The
        Group II Principal Distribution Amount shall be distributed in the following
        order of priority:

       

      first,
        commencing on the Distribution Date in April 2007, to the Supplemental Interest
        Trust, an amount equal to the Group II Allocation Percentage of (i) any Net
        Swap
        Payment owed to the Swap Provider and (ii) any Swap Termination Payment owed
        to
        the Swap Provider not due to a Swap Provider Trigger Event to the extent
        not
        paid from the Interest Remittance Amount on such Distribution Date;

       

      second,
        sequentially, to the Holders of the Class A-2A Class A-2B, Class A-2C and
        Class
        A-2D Certificates, in that order, until the Certificate Principal Balance
        of
        each such Class has been reduced to zero; and

       

      third,
        to the
        Holders of the Class A-1 Certificates after taking into account the distribution
        of the Group I Principal Distribution Amount as described in Section
        5.01(c)(5)(i) above, until the Certificate Principal Balance of such Class
        has
        been reduced to zero.

       

      (iii) The
        Group I Principal Distribution Amount and Group II Principal Distribution
        Amount
        remaining after distributions pursuant to Sections 5.01(c)(5)(i) and (ii)
        above
        shall be distributed in the following order of priority:

       

      sequentially,
        to the Holders of the Class M-1, Class M-2, Class M-3, Class M-4, Class M-5,
        Class M-6, Class M-7, Class M-8, Class M-9, Class M-10 and Class M-11
        Certificates, in that order, until the Certificate Principal Balance of each
        such Class has been reduced to zero.

       

      (6) 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
        Group I Principal Distribution Amount and the Group II Principal Distribution
        Amount and distribute to the Certificateholders the following amounts, in
        the
        following order of priority:

       

      (i) The
        Group I Principal Distribution Amount shall be distributed in the following
        order of priority:

       

      first,
        commencing on the Distribution Date in April 2007, to the Supplemental Interest
        Trust, an amount equal to the Group I Allocation Percentage of (i) any Net
        Swap
        Payment owed to the Swap Provider and (ii) any Swap Termination Payment owed
        to
        the Swap Provider not due to a Swap Provider Trigger Event to the extent
        not
        paid from the Interest Remittance Amount on such Distribution Date;

       

      second,
        to the
        Holders of the Class A-1 Certificates, the Class A-1 Principal Distribution
        Amount, until the Certificate Principal Balance of such Class has been reduced
        to zero; and 

       

      
        
          
          

        

        
          156

          
            

          

        

        
          
          

        

      

       

      third,
        sequentially, to the Holders of the Class A-2A, Class A-2B, Class A-2C and
        Class
        A-2D Certificates, in that order, after taking into account the distribution
        of
        the Group II Principal Distribution Amount pursuant to Section 5.01(c)(6)(ii)
        below, up to an amount equal to the amount, if any, of the Class A-2 Principal
        Distribution Amount remaining unpaid on such Distribution Date, until the
        Certificate Principal Balance of each such Class has been reduced to
        zero.

       

      (ii) The
        Group II Principal Distribution Amount shall be distributed in the following
        order of priority:

       

      first,
        commencing on the Distribution Date in April 2007, to the Supplemental Interest
        Trust, an amount equal to the Group II Allocation Percentage of (i) any Net
        Swap
        Payment owed to the Swap Provider and (ii) any Swap Termination Payment owed
        to
        the Swap Provider not due to a Swap Provider Trigger Event to the extent
        not
        paid from the Interest Remittance Amount on such Distribution Date;

       

      second,
        sequentially, to the Holders of the Class A-2A, Class A-2B, Class A-2C and
        Class
        A-2D Certificates, in that order, the Class A-2 Principal Distribution Amount,
        until the Certificate Principal Balance of each such Class has been reduced
        to
        zero; and

       

      third,
        to the
        Holders of the Class A-1 Certificates, after taking into account the
        distribution of the Group I Principal Distribution Amount pursuant to Section
        5.01(c)(6)(i) above, up to an amount equal to the amount, if any, of the
        Class
        A-1 Principal Distribution Amount remaining unpaid on such Distribution Date,
        until the Certificate Principal Balance of the Class A-1 Certificates has
        been
        reduced to zero.

       

      (iii) The
        Principal Distribution Amount remaining after distributions pursuant to Sections
        5.01(c)(6)(i) and (ii) above shall be distributed in the following order
        of
        priority:

       

      first,
        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
        Supplemental Interest Trust and to the Holders of the Class A Certificates
        under
        Sections 5.01(c)(6)(i) and (ii), 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;

       

      second,
        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 Supplemental Interest Trust and to the Holders of the Class A Certificates
        under Sections 5.01(c)(6)(i) and (ii) and to the Holders of the Class M-1
        Certificates under clause first
        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;

       

      
        
          
          

        

        
          157

          
            

          

        

        
          
          

        

      

       

      third,
        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 Supplemental Interest Trust and to the Holders of the Class A Certificates
        under Sections 5.01(c)(6)(i) and (ii), to the Holders of the Class M-1
        Certificates under clause first
        above
        and to the Holders of the Class M-2 Certificates under clause second
        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;

       

      fourth,
        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 Supplemental Interest Trust and to the Holders of the Class A Certificates
        under Sections 5.01(c)(6)(i) and (ii), to the Holders of the Class M-1
        Certificates under clause first
        above,
        to the Holders of the Class M-2 Certificates under clause second
        above
        and to the Holders of the Class M-3 Certificates under clause third
        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;

       

      fifth,
        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 Supplemental Interest Trust and to the Holders of the Class A Certificates
        under Sections 5.01(c)(6)(i) and (ii), to the Holders of the Class M-1
        Certificates under clause first
        above,
        to the Holders of the Class M-2 Certificates under clause second
        above,
        to the Holders of the Class M-3 Certificates under clause third
        above
        and to the Holders of the Class M-4 Certificates under clause fourth
        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;

       

      sixth,
        to the
        Holders of the Class M-6 Certificates, the lesser of (x) the excess of (i)
        the
        Principal Distribution Amount over (ii) the sum of the amounts distributed
        to
        the Supplemental Interest Trust and to the Holders of the Class A Certificates
        under Sections 5.01(c)(6)(i) and (ii), to the Holders of the Class M-1
        Certificates under clause first
        above,
        to the Holders of the Class M-2 Certificates under clause second
        above,
        to the Holders of the Class M-3 Certificates under clause third
        above,
        to the Holders of the Class M-4 Certificates under clause fourth
        above
        and
        to the Holders of the Class M-5 Certificates under clause fifth
        above,
        and (y) the Class M-6 Principal Distribution Amount, until the Certificate
        Principal Balance of the Class M-6 Certificates has been reduced to zero;
        

       

      seventh,
        to the
        Holders of the Class M-7 Certificates, the lesser of (x) the excess of (i)
        the
        Principal Distribution Amount over (ii) the sum of the amounts distributed
        to
        the Supplemental Interest Trust and to the Holders of the Class A Certificates
        under Sections 5.01(c)(6)(i) and (ii), to the Holders of the Class M-1
        Certificates under clause first
        above,
        to the Holders of the Class M-2 Certificates under clause second
        above,
        to the Holders of the Class M-3 Certificates under clause third
        above,
        to the Holders of the Class M-4 Certificates under clause fourth
        above,
        to the Holders of the Class M-5 Certificates under clause fifth
        above
        and to the Holders of the Class M-6 Certificates under clause sixth
        above,
        and (y) the Class M-7 Principal Distribution Amount, until the Certificate
        Principal Balance of the Class M-7 Certificates has been reduced to
        zero;

       

      
        
          
          

        

        
          158

          
            

          

        

        
          
          

        

      

       

      eighth,
        to the
        Holders of the Class M-8 Certificates, the lesser of (x) the excess of (i)
        the
        Principal Distribution Amount over (ii) the sum of the amounts distributed
        to
        the Supplemental Interest Trust and to the Holders of the Class A Certificates
        under Sections 5.01(c)(6)(i) and (ii), to the Holders of the Class M-1
        Certificates under clause first
        above,
        to the Holders of the Class M-2 Certificates under clause second
        above,
        to the Holders of the Class M-3 Certificates under clause third
        above,
        to the Holders of the Class M-4 Certificates under clause fourth
        above,
        to the Holders of the Class M-5 Certificates under clause fifth
        above,
        to the Holders of the Class M-6 Certificates under clause sixth
        above
        and to the Holders of the Class M-7 Certificates under clause seventh
        above,
        and (y) the Class M-8 Principal Distribution Amount, until the Certificate
        Principal Balance of the Class M-8 Certificates has been reduced to zero;
        

       

      ninth,
        to the
        Holders of the Class M-9 Certificates, the lesser of (x) the excess of (i)
        the
        Principal Distribution Amount over (ii) the sum of the amounts distributed
        to
        the Supplemental Interest Trust and to the Holders of the Class A Certificates
        under Sections 5.01(c)(6)(i) and (ii), to the Holders of the Class M-1
        Certificates under clause first
        above,
        to the Holders of the Class M-2 Certificates under clause second
        above,
        to the Holders of the Class M-3 Certificates under clause third
        above,
        to the Holders of the Class M-4 Certificates under clause fourth
        above,
        to
        the Holders of the Class M-5 Certificates under clause fifth
        above,
        to the Holders of the Class M-6 Certificates under clause sixth
        above,
        to the Holders of the Class M-7 Certificates under clause seventh
        above
        and to the Holders of the Class M-8 Certificates under clause eighth
        above,
        and (y) the Class M-9 Principal Distribution Amount, until the Certificate
        Principal Balance of the Class M-9 Certificates has been reduced to
        zero;

       

      tenth,
        to the
        Holders of the Class M-10 Certificates, the lesser of (x) the excess of (i)
        the
        Principal Distribution Amount over (ii) the sum of the amounts distributed
        to
        the Supplemental Interest Trust and to the Holders of the Class A Certificates
        under Sections 5.01(c)(6)(i) and (ii), to the Holders of the Class M-1
        Certificates under clause first
        above,
        to the Holders of the Class M-2 Certificates under clause second
        above,
        to the Holders of the Class M-3 Certificates under clause third
        above,
        to the Holders of the Class M-4 Certificates under clause fourth
        above,
        to
        the Holders of the Class M-5 Certificates under clause fifth
        above,
        to
        the Holders of the Class M-6 Certificates under clause sixth
        above,
        to the Holders of the Class M-7 Certificates under clause seventh
        above,
        to
        the Holders of the Class M-8 Certificates under clause eighth
        above
        and to the Holders of the Class M-9 Certificates under clause ninth
        above,
        and (y) the Class M-10 Principal Distribution Amount, until the Certificate
        Principal Balance of the Class M-10 Certificates has been reduced to
        zero;
        and

       

      
        
          
          

        

        
          159

          
            

          

        

        
          
          

        

      

       

      eleventh,
        to the
        Holders of the Class M-11 Certificates, the lesser of (x) the excess of (i)
        the
        Principal Distribution Amount over (ii) the sum of the amounts distributed
        to
        the Supplemental Interest Trust and to the Holders of the Class A Certificates
        under Sections 5.01(c)(6)(i) and (ii), to the Holders of the Class M-1
        Certificates under clause first
        above,
        to the Holders of the Class M-2 Certificates under clause second
        above,
        to the Holders of the Class M-3 Certificates under clause third
        above,
        to the Holders of the Class M-4 Certificates under clause fourth
        above,
        to
        the Holders of the Class M-5 Certificates under clause fifth
        above,
        to
        the Holders of the Class M-6 Certificates under clause sixth
        above,
        to the Holders of the Class M-7 Certificates under clause seventh
        above,
        to the Holders of the Class M-8 Certificates under clause eighth
        above,
        to the Holders of the Class M-9 Certificates under clause ninth
        above
        and to the Holders of the Class M-10 Certificates under clause tenth
        above,
        and (y) the Class M-11 Principal Distribution Amount, until the Certificate
        Principal Balance of the Class M-11 Certificates has been reduced to
        zero.

       

      Notwithstanding
        the priority of distributions described in this Section 5.01(c) with respect
        to
        the Class A-2A, Class A-2B, Class A-2C and Class A-2D Certificates, on any
        Distribution Date which occurs after the Certificate Principal Balances of
        the
        Mezzanine Certificates have been reduced to zero distributions in respect
        of
        principal to the Class A-2A, Class A-2B, Class A-2C and Class A-2D Certificates
        will be made on a pro rata basis, based on the Certificate Principal Balance
        of
        each such Class, until the Certificate Principal Balance of each such Class
        has
        been reduced to zero.

       

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

       

      (i) 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, payable to such Holders in accordance
        with the priorities set forth in Section 5.01(c)(5) and (6) above;

       

      (ii) sequentially,
        to the Holders of the Class M-1, Class M-2, Class M-3, Class M-4, Class M-5,
        Class M-6, Class M-7, Class M-8, Class M-9, Class M-10 and Class M-11
        Certificates, in that order, in an amount equal to the Interest Carry Forward
        Amount allocable to each such Class;

       

      (iii) sequentially,
        to the Holders of the Class M-1, Class M-2, Class M-3, Class M-4, Class M-5,
        Class M-6, Class M-7, Class M-8, Class M-9, Class M-10 and Class M-11
        Certificates, in that order, in an amount equal to the Allocated Realized
        Loss
        Amount allocable to each such Class;

       

      (iv) 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 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;

       

      
        
          
          

        

        
          160

          
            

          

        

        
          
          

        

      

       

      (v) sequentially,
        to the Holders of the Class M-1, Class M-2, Class M-3, Class M-4, Class M-5,
        Class M-6, Class M-7, Class M-8, Class M-9, Class M-10 and Class M-11
        Certificates, in that order, in an amount equal to such certificates’ share of
        any Prepayment Interest Shortfalls on the Mortgage Loans to the extent not
        covered by payments pursuant to Sections 3.22 or Section 4.19 of this Agreement
        and any Relief Act Interest Shortfall, in each case that were allocated to
        such
        Class for such Distribution Date and for any prior Distribution Date, to
        the
        extent not previously reimbursed pursuant to Section 1.02;

       

      (vi) to
        the Reserve Fund, the amount by which the Net WAC Rate Carryover Amounts,
        if
        any, with respect to the Class A Certificates and the Mezzanine Certificates
        exceeds the sum of any amounts received by the Securities Administrator with
        respect to the Cap Contracts since the prior Distribution Date and any amount
        in
        the Reserve Fund that was not distributed on prior Distribution
        Dates;

       

      (vii) to
        the Supplemental Interest Trust, an amount equal to any Swap Termination
        Payment
        owed to the Swap Provider due to a Swap Provider Trigger Event pursuant to
        the
        Swap Agreement; 

       

      (viii) 
        to the Holders of the Class CE Certificates the Interest Distribution Amount
        and
        any Overcollateralization Reduction Amount for such Distribution Date;
        and

       

      (ix) to
        the Holders of the Class R Certificates, in respect of the Class R-III 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 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 the Pooling and Servicing Agreement pursuant
        to Section 12.01, to revise such mistake in the distribution
        provisions.

       

      On
        the
        day prior to each Distribution Date, the Securities Administrator shall deposit
        all amounts received with respect to the Cap Contracts into the Reserve Fund.
        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
        Certificates, and second, withdraw from the Reserve Fund, to the extent of
        amounts remaining on deposit therein (which shall include any payments received
        under the Cap Contracts), the amount of any Net WAC Rate Carryover Amount
        for
        such Distribution Date and distribute such amount first, with respect to
        any
        amounts received by the Securities Administrator on account of the Group
        I Cap
        Contract to the Holders of the Class A-1 Certificates and with respect to
        any
        amounts received by the Securities Administrator on account of the Group
        II Cap
        Contract concurrently to the Holders of the Class A-2 Certificates on a
pro
        rata
        basis,
        based on the entitlement of each such Class; and, with respect to any amounts
        remaining undistributed paid pursuant to both Cap Contracts, 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, sixth, to the
        Class M-5 Certificates, seventh, to the Class M-6 Certificates, eighth, to
        the
        Class M-7 Certificates, ninth, to the Class M-8 Certificates, tenth, to the
        Class M-9 Certificates, eleventh, to the Class M-10 Certificates and twelfth,
        to
        the Class M-11 Certificates, in each case to the extent to the extent any
        Net
        WAC Rate Carryover Amount is allocable to each such Class.

       

      
        
          
          

        

        
          161

          
            

          

        

        
          
          

        

      

       

      With
        respect to any amounts deposited in the Reserve Fund from the Net Monthly
        Excess
        Cashflow under Section 5.01(c)(7)(vi) above and not distributed pursuant
        to the
        preceding paragraph, first, concurrently, (i) to the Holders of the Class
        A-1
        Certificates, the related Net WAC Rate Carryover Amount remaining unpaid
        for
        such Distribution Date and (ii) to the Holders of the Class A-2A, Class A-2B,
        Class A-2C and Class A-2D Certificates, the related Net WAC Rate Carryover
        Amount remaining unpaid for such Distribution Date, on a pro
        rata
        basis,
        based on the entitlement of each such Class; second, sequentially, to the
        Holders of the Class M-1 Certificates,
        Class
        M-2 Certificates, Class M-3 Certificates, Class M-4 Certificates, Class M-5
        Certificates, Class M-6 Certificates, Class M-7 Certificates, Class M-8
        Certificates, Class M-9 Certificates, Class M-10 Certificates and Class M-11
        Certificates, in that order, in respect of the related Net WAC Rate Carryover
        Amount remaining unpaid for each such Class for such Distribution Date and
        third, to the Class CE Certificates.

       

      (d) As
        described in Section 5.01(c)(2), (3), (5) and (6) above, Net Swap Payments
        and Swap Termination Payments (other than Swap Termination Payments resulting
        from a Swap Provider Trigger Event) payable by the Supplemental Interest
        Trust
        to the Swap Provider pursuant to the Swap Agreement shall be deducted from
        the
        Interest Remittance Amount, and to the extent of any such remaining amounts
        due,
        from the Principal Remittance Amount, prior to any distributions to the
        Certificateholders. On each Distribution Date, such amounts will be remitted
        to
        the Supplemental Interest Trust, first to make any Net Swap Payment owed
        to the
        Swap Provider pursuant to the Swap Agreement for such Distribution Date,
        and
        second to make any Swap Termination Payment (not due to a Swap Provider Trigger
        Event) owed to the Swap Provider pursuant to the Swap Agreement for such
        Distribution Date. Any Swap Termination Payment triggered by a Swap Provider
        Trigger Event owed to the Swap Provider pursuant to the Swap Agreement will
        be
        subordinated to distributions to the Holders of the Class A Certificates
        and the
        Mezzanine Certificates and shall be paid pursuant to Section
        5.01(c)(7)(vii).

       

      
        
          
          

        

        
          162

          
            

          

        

        
          
          

        

      

       

      (e) On
        each Distribution Date, to the extent required, following the distribution
        of
        the Net Monthly Excess Cashflow and withdrawals from the Reserve Fund, the
        Securities Administrator will withdraw any amounts in the Supplemental Interest
        Trust and distribute such amounts in the following order of priority:

       

      first,
        to the
        Swap Provider, any Net Swap Payment owed to the Swap Provider pursuant to
        the
        Swap Agreement for such Distribution Date;

       

      second,
        to the
        Swap Provider, any Swap Termination Payment owed to the Swap Provider not
        due to
        a Swap Provider Trigger Event pursuant to the Swap Agreement;

       

      third,
        concurrently, to each Class of Class A Certificates, the related Senior Interest
        Distribution Amount remaining undistributed after the distributions of the
        Group
        I Interest Remittance Amount and the Group II Interest Remittance Amount,
        on a
pro
        rata
        basis
        based on such respective remaining Senior Interest Distribution
        Amounts;

       

      fourth,
        sequentially, to the Class M-1, Class M-2, Class M-3, Class M-4, Class M-5,
        Class M-6, Class M-7, Class M-8, Class M-9, Class M-10 and Class M-11
        Certificates, in that order, the related Interest Distribution Amount and
        Interest Carry Forward Amount, to the extent remaining undistributed after
        the
        distributions of the Group I Interest Remittance Amount, the Group II Interest
        Remittance Amount and the Net Monthly Excess Cashflow;

       

      fifth,
        to
        the
        holders of the Class or Classes of Certificates then entitled to receive
        distributions in respect of principal, in an amount necessary to maintain
        the
        Required Overcollateralization Amount after taking into account distributions
        made pursuant to Section 5.01(c)(7)(i) above;

       

      sixth,
        sequentially to the Class M-1, Class M-2, Class M-3, Class M-4, Class M-5,
        Class
        M-6, Class M-7, Class M-8, Class M-9, Class M-10 and Class M-11 Certificates,
        in
        that order, in each case up to the related Allocated Realized Loss Amount
        related to such Certificates for such Distribution Date remaining undistributed
        after distribution of the Net Monthly Excess Cashflow;

       

      seventh,
        concurrently, to each Class of Class A Certificates, the related Net WAC
        Rate
        Carryover Amount, to the extent remaining undistributed after distributions
        of
        Net Monthly Excess Cashflow on deposit in the Reserve Fund, on a pro
        rata
        basis
        based on such respective Net WAC Rate Carryover Amounts remaining
        unpaid;

       

      eighth,
        sequentially, to the Class M-1, Class M-2, Class M-3, Class M-4, Class M-5,
        Class M-6, Class M-7, Class M-8, Class M-9, Class M-10 and Class M-11
        Certificates, in that order, the related Net WAC Rate Carryover Amount to
        the
        extent remaining undistributed after distributions of Net Monthly Excess
        Cashflow on deposit in the Reserve Fund;

       

      ninth,
        to the
        Swap Provider, an amount equal to any Swap Termination Payment owed to the
        Swap
        Provider due to a Swap Provider Trigger Event pursuant to the Swap Agreement;
        and

       

      tenth,
        to the
        Class CE Certificates, any remaining amounts.

       

      
        
          
          

        

        
          163

          
            

          

        

        
          
          

        

      

       

      (f) 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.

       

      (g) 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(i)
        or
        Section 10.01 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 (5) 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 Servicer, the Securities Administrator or the Master Servicer
        shall have any responsibility therefor except as otherwise provided by this
        Agreement or applicable law.

       

      (h) 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 Servicer, 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.

       

      (i) Except
        as otherwise provided in Section 10.01, 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:

       

      
        
          
          

        

        
          164

          
            

          

        

        
          
          

        

      

       

      
        	
              	(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(i) 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(i). Any such amounts held in trust by the
        Securities Administrator shall be held uninvested in an Eligible
        Account.

       

      (j) 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 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 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, information provided
        by the Swap Provider under the Swap Agreement with respect to payments made
        pursuant to the Swap Agreement and information provided by the Cap Counterparty
        with respect to payments made pursuant to the Cap Contracts) shall make
        available to each Holder of the Certificates and the Credit Risk Manager,
        a
        statement as to the distributions made on such Distribution Date setting
        forth:

       

      
        
          
          

        

        
          165

          
            

          

        

        
          
          

        

      

       

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

       

      (ii) with
        respect to each loan group, the total cash flows received and the general
        sources thereof; 

       

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

       

      (iv) 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; 

       

      (v) with
        respect to each loan group, 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;

       

      (vi) with
        respect to each loan group, the amount of such distribution to Holders of
        the
        Certificates (by class) allocable to interest and the portion thereof, if
        any,
        provided by the Swap Agreement;

       

      (vii) with
        respect to each loan group, the Interest Carry Forward Amounts and any Net
        WAC
        Rate Carryover Amounts for the related Certificates (if any);

       

      (viii) the
        aggregate amount of Advances included in the distributions on the Distribution
        Date (including the general purpose of such Advances);

       

      (ix) with
        respect to each loan group, 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;

       

      (x) 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;

       

      (xi) with
        respect to each loan group and 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;

       

      
        
          
          

        

        
          166

          
            

          

        

        
          
          

        

      

       

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

       

      (xiii) with
        respect to each loan group, whether the Stepdown Date has occurred and whether
        Trigger Event is in effect;

       

      (xiv) with
        respect to each loan group, the cumulative Realized Losses through the end
        of
        the preceding month;

       

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

       

      (xvi) with
        respect to each loan group, 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;

       

      (xvii) with
        respect to each loan group, the number and Scheduled Principal Balance of
        all
        the Mortgage Loans for the following Distribution Date;

       

      (xviii) with
        respect to each loan group, 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 in such loan group 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 in such loan group;

       

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

       

      (xx) the
        Interest Distribution Amount in respect of the Class A Certificates, the
        Mezzanine Certificates and the Class CE 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;

       

      (xxi) the
        aggregate amount of any Prepayment Interest Shortfall for such Distribution
        Date, to the extent not covered by payments by the Servicer pursuant to
        Section 3.22 of this Agreement, the Master Servicer pursuant to
        Section 4.19 of this Agreement; 

       

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

       

      
        
          
          

        

        
          167

          
            

          

        

        
          
          

        

      

       

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

       

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

       

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

       

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

       

      (xxvii) the
        Pass-Through Rate for each class of Certificates for such Distribution
        Date;

       

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

       

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

       

      (xxx) the
        amount of any deposit to the Reserve Fund pursuant to
        Section 5.01(c)(7)(vi);

       

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

       

      (xxxii) the
        Aggregate Loss Severity Percentage;

       

      (xxxiii)  with
        respect to each loan group, the amount of the Prepayment Charges remitted
        by the
        Servicer; 

       

      (xxxiv)  the
        amount of any Net Swap Payment payable to the Trust, any related Net Swap
        Payment payable to the Swap Provider, any Swap Termination Payment payable
        to
        the Trust and any related Swap Termination Payment payable to the Swap Provider;
        and

       

      (xxxv) the
        amounts received under the Cap Contracts.

       

      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.

       

      
        
          
          

        

        
          168

          
            

          

        

        
          
          

        

      

       

      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
        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 Servicer
        shall deliver to the Master Servicer and the Securities Administrator by
        telecopy or electronic mail (or by such other means as the 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
        the Servicer as the Master Servicer or the Securities Administrator may
        reasonably require so as to enable the Master Servicer to master service
        the
        related Mortgage Loans and oversee the servicing by the Servicer and the
        Securities Administrator to fulfill its obligations hereunder with respect
        to
        securities and tax reporting.

       

      
        
          
          

        

        
          169

          
            

          

        

        
          
          

        

      

       

      (b) The
        amount of P&I Advances to be made by the Servicer on any Distribution Date
        shall equal, subject to Section 5.03(d), (i) the aggregate amount of Monthly
        Payments (net of the related Servicing Fees), due during the related Due
        Period
        in respect of the Mortgage Loans serviced by the Servicer, which Monthly
        Payments were delinquent as of the close of business on the related
        Determination Date and (ii) 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 Collection Account pursuant to Section 3.21 of this Agreement
        for distribution on such Distribution Date; provided, however, the Servicer
        shall not be required to make P&I Advances with respect to 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. 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.

       

      On
        the
        Servicer Remittance Date, the 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 related Mortgage Loans for the related Distribution Date either
        (i) from its own funds or (ii) from the 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 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 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 Servicer with respect to the
        related Mortgage Loans. In addition, the 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 Servicer to make P&I Advances or to reimburse
        itself for outstanding P&I Advances shall be appropriately reflected in the
        Servicer’s records and replaced by the Servicer by deposit in the 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 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 Servicer to the Securities
        Administrator on such date is less than the P&I Advances required to be made
        by the Servicer for the related Distribution Date.

       

      (c) The
        obligation of the Servicer to make such P&I Advances is mandatory,
        notwithstanding any other provision of this Agreement but subject to (d)
        below,
        and, with respect to any related 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 the 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
        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.

       

      
        
          
          

        

        
          170

          
            

          

        

        
          
          

        

      

       

      (e) In
        the event that the Servicer (or any successor thereto) fails to make a required
        P&I Advance, the Master Servicer (in its capacity as successor to the
        Servicer) will be required to make such P&I Advance on the Distribution Date
        on which the Servicer was required to make such P&I Advance, subject to its
        determination of recoverability.

       

      SECTION
        5.04. Allocation of Realized Losses.

       

      (a) Prior
        to the Determination Date, the Servicer shall determine as to each Mortgage
        Loan
        serviced by the 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 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
        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 Servicer 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) on the Mortgage Loans shall be allocated by the
        Securities Administrator on each Distribution Date as follows: first,
        to Net
        Monthly Excess Cashflow and to Net Swap Payments received from the Swap Provider
        under the Swap Agreement for that purpose; second,
        to the
        Class CE Certificates; third,
        to the
        Class M-11 Certificates, until the Certificate Principal Balance of the Class
        M-11 Certificates has been reduced to zero; fourth,
        to the
        Class M-10 Certificates, until the Certificate Principal Balance of the Class
        M-10 Certificates has been reduced to zero; fifth,
        to the
        Class M-9 Certificates, until the Certificate Principal Balance of the Class
        M-9
        Certificates has been reduced to zero; sixth,
        to the
        Class M-8 Certificates, until the Certificate Principal Balance of the Class
        M-8
        Certificates has been reduced to zero; seventh,
        to the
        Class M-7 Certificates, until the Certificate Principal Balance of the Class
        M-7
        Certificates has been reduced to zero; eighth,
        to the
        Class M-6 Certificates, until the Certificate Principal Balance of the Class
        M-6
        Certificates has been reduced to zero; ninth,
        to the
        Class M-5 Certificates, until the Certificate Principal Balance of the Class
        M-5
        Certificates has been reduced to zero; tenth,
        to the
        Class M-4 Certificates, until the Certificate Principal Balance of the Class
        M-4
        Certificates has been reduced to zero; eleventh,
        to the
        Class M-3 Certificates, until the Certificate Principal Balance of the Class
        M-3
        Certificates has been reduced to zero, twelfth,
        to the
        Class M-2 Certificates, until the Certificate Principal Balance of the Class
        M-2
        Certificates has been reduced to zero; and thirteenth,
        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.

       

      
        
          
          

        

        
          171

          
            

          

        

        
          
          

        

      

       

      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; any allocation of Realized Losses to a Class CE Certificate
        shall be made by reducing the amount otherwise payable in respect thereof
        pursuant to Section 5.01(c)(7)(viii). No allocations of any Realized Losses
        shall be made to the Certificate Principal Balances of the Class A Certificates
        or 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 the Servicer receives any Subsequent Recoveries
        with
        respect to a Mortgage Loan serviced by it, the Servicer shall deposit such
        funds
        into the Collection Account pursuant to Section 3.08. 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 Class of Subordinate 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
        Subordinate Certificates pursuant to this Section 5.04 and not previously
        reimbursed to such Class of Subordinate Certificates with Net Monthly Excess
        Cashflow pursuant to Section 5.01(c)(7). The amount of any remaining Subsequent
        Recoveries will be applied to sequentially increase the Certificate Principal
        Balance of the Subordinate Certificates, beginning with the Class of Subordinate
        Certificates with the next highest payment priority, up to the amount of
        such
        Realized Losses previously allocated to such Class of Subordinate Certificates
        pursuant to this Section 5.04 and not previously reimbursed to such Class
        of
        Subordinate Certificates with Net Monthly Excess Cashflow pursuant to Section
        5.01(c)(7)(iii). 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 Subordinate Certificate of such Class in accordance with its respective
        Percentage Interest.

       

      (c)(i) Realized
        Losses on the Group I Mortgage Loans shall be allocated on each Distribution
        Date first, to REMIC I Regular Interest I until the Uncertificated Balance
        of
        such REMIC I Regular Interest has been reduced to zero and second, to REMIC
        I
        Regular Interest I-1-A through REMIC I Regular Interest I-57-B, starting
        with
        the lowest numerical denomination until such REMIC I Regular Interest has
        been
        reduced to zero, provided that, for REMIC I Regular Interests with the same
        numerical denomination, such Realized Losses shall be allocated pro
        rata
        between
        such REMIC I Regular Interests. All Realized Losses on the Group II Mortgage
        Loans shall be allocated on each Distribution Date first, to REMIC I Regular
        Interest II until the Uncertificated Balance of such REMIC I Regular Interest
        has been reduced to zero and second, to REMIC I Regular Interest II-1-A through
        REMIC I Regular Interest II-57-B, starting with the lowest numerical
        denomination until such REMIC I Regular Interest has been reduced to zero,
        provided that, for REMIC I Regular Interests with the same numerical
        denomination, such Realized Losses shall be allocated pro
        rata
        between
        such REMIC I Regular Interests. 

       

      
        
          
          

        

        
          172

          
            

          

        

        
          
          

        

      

       

      (ii) REMIC
        II Marker Allocation Percentage of all Realized Losses on the Mortgage Loans
        shall be allocated by the Securities Administrator on each Distribution Date
        to
        the following REMIC II Regular Interests in the specified percentages, as
        follows: first, to Uncertificated Interest payable to the REMIC II Regular
        Interest AA and REMIC II Regular Interest ZZ up to an aggregate amount equal
        to
        the REMIC II Interest Loss Allocation Amount, 98.00% and 2.00%, respectively;
        second, to the Uncertificated Balances of the REMIC II Regular Interest AA
        and
        REMIC II Regular Interest ZZ up to an aggregate amount equal to the REMIC
        II
        Principal Loss Allocation Amount, 98.00% and 2.00%, respectively; third,
        to the
        Uncertificated Balances of REMIC II Regular Interest AA, REMIC II Regular
        Interest M-11 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%,
        respectively, until the Uncertificated Balance of REMIC II Regular Interest
        M-11
        has been reduced to zero; fourth, to the Uncertificated Balances of REMIC
        II
        Regular Interest AA, REMIC II Regular Interest M-10 and REMIC II Regular
        Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated
        Balance of REMIC II Regular Interest M-10 has been reduced to zero; fifth,
        to
        the Uncertificated Balances of REMIC II Regular Interest AA, REMIC II Regular
        Interest M-9 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%,
        respectively, until the Uncertificated Balance of REMIC II Regular Interest
        M-9
        has been reduced to zero; sixth, to the Uncertificated Balances of REMIC
        II
        Regular Interest AA, REMIC II Regular Interest M-8 and REMIC II Regular Interest
        ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Balance
        of
        REMIC II Regular Interest M-8 has been reduced to zero; seventh, to the
        Uncertificated Balances of REMIC II Regular Interest AA, REMIC II Regular
        Interest M-7 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%,
        respectively, until the Uncertificated Balance of REMIC II Regular Interest
        M-7
        has been reduced to zero; eighth, to the Uncertificated Balances of REMIC
        II
        Regular Interest AA, REMIC II Regular Interest M-6 and REMIC II Regular Interest
        ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Balance
        of
        REMIC II Regular Interest M-6 has been reduced to zero; ninth, to the
        Uncertificated Balances of REMIC II Regular Interest AA, REMIC II Regular
        Interest M-5 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%,
        respectively, until the Uncertificated Balance of REMIC II Regular Interest
        M-5
        has been reduced to zero; tenth, to the Uncertificated Balances of REMIC
        II
        Regular Interest AA, REMIC II Regular Interest M-4 and REMIC II Regular Interest
        ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Balance
        of
        REMIC II Regular Interest M-4 has been reduced to zero; eleventh, to the
        Uncertificated Balances of REMIC II Regular Interest AA, REMIC II Regular
        Interest M-3 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%,
        respectively, until the Uncertificated Balance of REMIC II Regular Interest
        M-3
        has been reduced to zero; twelfth, to the Uncertificated Balances of REMIC
        II
        Regular Interest AA, REMIC II Regular Interest M-2 and REMIC II Regular Interest
        ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Balance
        of
        REMIC II Regular Interest M-2 has been reduced to zero; and thirteenth, to
        the
        Uncertificated Balances of REMIC II Regular Interest AA, REMIC II Regular
        Interest M-1 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%,
        respectively, until the Uncertificated Balance of REMIC II Regular Interest
        M-1
        has been reduced to zero.

       

      
        
          
          

        

        
          173

          
            

          

        

        
          
          

        

      

       

      (iii) The
        REMIC II Sub WAC Allocation Percentage of all Realized Losses shall be applied
        after all distributions have been made on each Distribution Date first, so
        as to
        keep the Uncertificated Balance of each REMIC II Regular Interest ending
        with
        the designation “GRP” equal to 0.01% of the aggregate Stated Principal Balance
        of the Mortgage Loans in the related loan group; second, to each REMIC II
        Regular Interest ending with the designation “SUB,” so that the Uncertificated
        Balance of each such REMIC II Regular Interest is equal to 0.01% of the excess
        of (x) the aggregate Stated Principal Balance of the Mortgage Loans in the
        related loan group over (y) the current Certificate Principal Balance of
        the
        Class A Certificate in the related loan group (except that if any such excess
        is
        a larger number than in the preceding distribution period, the least amount
        of
        Realized Losses shall be applied to such REMIC II Regular Interests such
        that
        the REMIC II Subordinated Balance Ratio is maintained); and third, any remaining
        Realized Losses shall be allocated to REMIC II Regular Interest XX.

       

      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, no later than 10 calendar days prior to the
        deadline for the filing of any distribution report on Form 10-D, (A) certain
        parties to the ACE Securities Corp. Home Equity Loan Trust, Series 2006-NC2
        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”) or such other format as agreed upon by the Securities
        Administrator and the reporting party 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. 

       

      
        
          
          

        

        
          174

          
            

          

        

        
          
          

        

      

       

      (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 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. 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. Notwithstanding any other
        provisions of this Agreement, the obligations of the Servicer with respect
        to
        Additional Form 10-D Disclosure and any Additional Disclosure Notification
        shall
        be limited to those set forth in Section 3.19(f)(iii) of this
        Agreement.

       

      (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 other than the initial
        Form 8K (“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. 

       

      
        
          
          

        

        
          175

          
            

          

        

        
          
          

        

      

       

      (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-NC2 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. 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. Notwithstanding any other provisions of this Agreement, the
        obligations of the Servicer with respect to Form 8-K Disclosure information
        shall be limited to those set forth in Sections 3.19(f)(i) and 3.19(g) of
        this Agreement.

       

      (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 electronically notify 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
        and such amendment includes any Additional Form 10-D Disclosure (other than
        for
        the purposes 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 electronically notify 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
        master
        servicing, as applicable, of the Master Servicer. 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.

       

      
        
          
          

        

        
          176

          
            

          

        

        
          
          

        

      

       

      (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 and the Custodial
        Agreement, (i) an annual compliance statement for the 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, 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 (“Sarbanes-Oxley Certification”) as described in Section 3.19 and
        Section 4.18; provided that such certification delivered by the Servicer
        may not
        be filed as an exhibit to, or included in, any filing with the Commission.
        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”) 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. 

       

      
        
          
          

        

        
          177

          
            

          

        

        
          
          

        

      

       

      (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-NC2 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
        Business Days after receipt of such copy, but in no event later than March
        25th
        of each year that the Trust is subject to 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. 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. Notwithstanding any other
        provisions of this Agreement, the obligations of the Servicer with respect
        to
        Additional Form 10-K Disclosure shall be limited to those set forth in
        Section 3.19(f)(ii) of this Agreement.

       

      (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.

       

      
        
          
          

        

        
          178

          
            

          

        

        
          
          

        

      

       

      (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.

       

      SECTION
        5.07. Supplemental Interest Trust.

       

      (a) On
        the Closing Date, the Securities Administrator shall establish and maintain
        in
        the name of the Trustee a separate account for the benefit of the holders
        of the
        Class A Certificates and the Mezzanine Certificates (the “Supplemental Interest
        Trust”). The Supplemental Interest Trust shall be an Eligible Account, and funds
        on deposit therein shall be held separate and apart from, and shall not be
        commingled with, any other moneys, including, without limitation, other moneys
        of the Trustee or of the Securities Administrator held pursuant to this
        Agreement. 

       

      (b) On
        each Distribution Date, the Securities Administrator shall deposit into the
        Supplemental Interest Trust amounts distributable to the Swap Provider by
        the
        Supplemental Interest Trust pursuant to Section 5.01(c)(2), (3), (5) and
        (6) and Section 5.01(c)(7)(vii)
        of this
        Agreement. On each Distribution Date, the Securities Administrator shall
        distribute any such amounts to the Swap Provider pursuant to the Swap Agreement,
        first to pay any Net Swap Payment owed to the Swap Provider for such
        Distribution Date, and second to pay any Swap Termination Payment owed to
        the
        Swap Provider not due to a Swap Provider Trigger Event.

       

      (c) The
        Supplemental Interest Trust constitutes an “outside reserve fund” within the
        meaning of Treasury Regulation § 1.860G-2(h) and is not an asset of any REMIC.
        The Holders of the Class CE Certificates shall be the beneficial owner of
        the
        Supplemental Interest Trust, subject to the power of the Securities
        Administrator to transfer amounts under this Agreement. The Securities
        Administrator shall keep records that accurately reflect the funds on deposit
        in
        the Supplemental Interest Trust. The Securities Administrator shall, at the
        written direction of the majority of the Class CE Certificateholders, invest
        amounts on deposit in the Supplemental Interest Trust in Permitted Investments.
        In the absence of written direction to the Securities Administrator from
        the
        majority of the Class CE Certificateholders, all funds in the Supplemental
        Interest Trust shall remain uninvested. On each Distribution Date, the
        Securities Administrator shall distribute, not in respect of any REMIC, any
        interest earned on the Supplemental Interest Trust to the Holders of the
        Class
        CE Certificates.

       

      
        
          
          

        

        
          179

          
            

          

        

        
          
          

        

      

       

      (d) For
        federal income tax purposes, amounts paid to the Supplemental Interest Trust
        on
        each Distribution Date pursuant to Section 5.01(c)(2), (3), (4), (6) and
        (7) and Section 5.01(c)(7)(vii) shall first be deemed paid to the
        Supplemental Interest Trust in respect of the Class IO Interest to the extent
        of
        the amount distributable on such Class IO Interest on such Distribution Date,
        and any remaining amount shall be deemed paid to the Supplemental Interest
        Trust
        in respect of a Class IO Distribution Amount. It is the intention of the
        parties
        hereto that, for federal and state income and state and local franchise tax
        purposes, the Supplemental Interest Trust be disregarded as an entity separate
        from the Holder of the Class CE Certificates unless and until the date when
        either (a) there is more than one Class CE Certificateholder or (b) any Class
        of
        Certificates in addition to the Class CE Certificates is recharacterized
        as an
        equity interest in the Supplemental Interest Trust 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
        Supplemental Interest Trust be treated as a partnership. The Master Servicer
        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. 

       

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

       

      
        
          
          

        

        
          180

          
            

          

        

        
          
          

        

      

       

      (f) For
        federal tax return and information reporting, the right of the holders of
        the
        Class A Certificates and the Mezzanine Certificates to receive payments from
        the
        Supplemental Interest Trust and the Reserve Fund in respect of any Net WAC
        Rate
        Carryover Amount shall be assigned a value of $45,000.

       

      (g) In
        the event that the Swap Agreement is terminated prior to the Distribution
        Date
        in December 2011, the Sponsor shall use reasonable efforts to appoint a
        successor swap provider using any Swap Termination Payments paid by the Swap
        Provider. If the Sponsor is unable to locate a qualified successor swap
        provider, any such Swap Termination Payments will be remitted to the Securities
        Administrator for payment to the holders of the Class Certificates and the
        Mezzanine Certificates in accordance with Section 5.01(c).

       

      SECTION
        5.08. Tax Treatment of Swap Payments and Swap Termination
        Payments.

       

      For
        federal income tax purposes, each holder of a Class A Certificate or Mezzanine
        Certificate is deemed to own an undivided beneficial ownership interest in
        a
        REMIC regular interest and the right to receive payments from either the
        Reserve
        Fund or the Supplemental Interest Trust in respect of any Net WAC Rate Carryover
        Amounts or the obligation to make payments to the Supplemental Interest Trust.
        For federal income tax purposes, the Securities Administrator will account
        for
        payments to each Class A Certificate or Mezzanine Certificate as follows:
        each
        Class A Certificate or Mezzanine Certificate will be treated as receiving
        their
        entire payment from REMIC III (regardless of any Swap Termination Payment
        or
        obligation under the Swap Agreement) and subsequently paying their portion
        of
        any Swap Termination Payment in respect of each such Class’s obligation under
        the Swap Agreement. In the event that any such Class is resecuritized in
        a
        REMIC, the obligation under the Swap Agreement to pay any such Swap Termination
        Payment (or any shortfall in Net Swap Payment), will be made by one or more
        of
        the REMIC Regular Interests issued by the resecuritization REMIC subsequent
        to
        such REMIC Regular Interest receiving its full payment from any such Class
        A
        Certificate or Mezzanine Certificate. 

       

      The
        REMIC
        Regular Interest corresponding to an Class A Certificate or Mezzanine
        Certificate will be entitled to receive interest and principal payments at
        the
        times and in the amounts equal to those made on the certificate to which
        it
        corresponds, except that (i) the maximum interest rate of that REMIC regular
        interest will equal the Net WAC Pass-Through Rate computed for this purpose
        by
        limiting the Swap Notional Amount of the Swap Agreement to the aggregate
        Stated
        Principal Balance of the Mortgage Loans and (ii) any Swap Termination Payment
        will be treated as being payable solely from amounts otherwise payable to
        the
        Class CE Certificates. As a result of the foregoing, the amount of distributions
        and taxable income on the REMIC Regular Interest corresponding to a Class
        A
        Certificate or Mezzanine Certificate may exceed the actual amount of
        distributions on the Class A Certificate or Mezzanine Certificate.

       

      
        
          
          

        

        
          181

          
            

          

        

        
          
          

        

      

       

      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,
        REMIC
        II and REMIC III.

       

      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 Servicer
        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.

       

      
        
          
          

        

        
          182

          
            

          

        

        
          
          

        

      

       

      (c) The
        Class M-10, Class M-11 and Class CE 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.

       

      The
        Class
        M-10 Certificates and Class M-11 Certificates offered and sold to Qualified
        Institutional Buyers (“QIBs”) in reliance on Rule 144A under the Securities Act
        (“Rule 144A”) or institutional investors that are accredited investors within
        the meaning of Rule 501(a)(1), (2), (3) or (7) of Regulation D under the
        Securities Act (“Institutional Accredited Investors”) will be issued in the form
        of Book-Entry Certificates.

       

      The
        Class
        CE Certificates and Class P Certificates offered and sold to QIBs in reliance
        on
        Rule 144A will be issued in the form of Definitive Certificates.

       

      (d) The
        Trustee, the Servicer, 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 and Global 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.

       

      
        
          
          

        

        
          183

          
            

          

        

        
          
          

        

      

       

      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 the 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. With respect to a Global Certificate, the related
        Certificate Owner (other than a Holder of a Regulation S Temporary 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 by the Book-Entry Custodian or the Depository,
        as
        applicable, or the Global Certificates by the Depository 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 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 a Global Certificate, as applicable. None of the
        Depositor, the Servicer, 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, 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 M-10 Certificate, Class M-11 Certificate, Class CE
        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
        M-10
        Certificate, Class M-11 Certificate, Class CE 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)
        if such transfer is purportedly being made in reliance on Regulation S, a
        written certification from the prospective transferee, substantially in the
        form
        attached hereto as 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
        Servicer), 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 Servicer
        against any liability that may result if the transfer is not so exempt or
        is not
        made in accordance with such federal and state laws.

       

      
        
          
          

        

        
          184

          
            

          

        

        
          
          

        

      

       

      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 Certificate, Class P Certificate or a 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 Servicer 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 Servicer, 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, the 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.

       

      
        
          
          

        

        
          185

          
            

          

        

        
          
          

        

      

       

      For
        so
        long as the Supplemental Interest Trust is in existence, each beneficial
        owner
        of an Offered Certificate,
        or
        any
        interest therein, shall be deemed to have represented, by virtue of its
        acquisition or holding of the Offered Certificate, or interest therein, that
        either (i) it is not a Plan or (ii)(A) it is an accredited investor within
        the
        meaning of Prohibited Transaction Exemption 2002-41, as amended from time
        to
        time (the “Exemption”) and (B) the acquisition and holding of such Certificate
        and the separate right to receive payments from the Supplemental Interest
        Trust
        are eligible for the exemptive relief available under Prohibited Transaction
        Class Exemption (“PTCE”) 84-14 (for transactions by independent “qualified
        professional asset managers”), 91-38 (for transactions by bank collective
        investment funds), 90-1 (for transactions by insurance company pooled separate
        accounts), 95-60 (for transactions by insurance company general accounts)
        or
        96-23 (for transactions effected by “in-house asset managers”) in
        the
        case of an Offered Certificate or PTCE 95-60 in the case of a Class M-10
        Certificate
        or Class
        M-11 Certificate.

       

      Each
        Transferee of a Mezzanine Certificate or any interest therein that is acquired
        after the termination of the Supplemental Interest Trust will be deemed to
        have
        represented by virtue of its purchase or holding of such Certificate (or
        interest therein) that either (a) such Transferee is not a Plan or purchasing
        such Certificate with Plan Assets, (b) except in the case of a Class M-10
        Certificate or Class M-11 Certificate, it has acquired and is holding such
        Certificate in reliance on the Exemption, and that it understands that there
        are
        certain conditions to the availability of the Exemption including that such
        Certificate must be rated, at the time of purchase, not lower than “BBB-” (or
        its equivalent) by a Rating Agency or (c) the following conditions are
        satisfied: (i) such Transferee is an insurance company, (ii) the source of
        funds
        used to purchase or hold such Certificate (or interest therein) is an “insurance
        company general account” (as defined in PTCE 95-60, and (iii) the conditions set
        forth 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 Servicer, 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.

       

      
        
          
          

        

        
          186

          
            

          

        

        
          
          

        

      

       

      (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.”

       

      
        
          
          

        

        
          187

          
            

          

        

        
          
          

        

      

       

      (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.

       

      
        
          
          

        

        
          188

          
            

          

        

        
          
          

        

      

       

      (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, 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. 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 three separate
        certificates, each representing such holder's respective Percentage Interest
        in
        the Class R-I Interest, the Class R-II Interest and the Class R-III Interest,
        respectively, in each case that was evidenced by the Class R Certificate
        being
        exchanged.

       

      
        
          
          

        

        
          189

          
            

          

        

        
          
          

        

      

       

      (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 Servicer, 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 Servicer, 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.

       

      
        
          
          

        

        
          190

          
            

          

        

        
          
          

        

      

       

      On
        or
        prior to the date of the first sale of any Class M-10 Certificate, Class
        M-11
        Certificate, Class CE 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 M-10 Certificate, Class M-11 Certificate, Class CE 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, (B) all monthly statements required to be delivered to
        Certificateholders of the relevant Class pursuant to Section 5.02 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 the 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.

       

      
        
          
          

        

        
          191

          
            

          

        

        
          
          

        

      

       

      ARTICLE
        VII

       

      THE
        DEPOSITOR, THE SERVICER AND THE MASTER SERVICER

       

      SECTION
        7.01. Liability of the Depositor, the Servicer and the Master
        Servicer.

       

      The
        Depositor, the Servicer 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
        Servicer and the Master Servicer herein.

       

      SECTION
        7.02. Merger or Consolidation of the Depositor, the Servicer 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, the
        Servicer will keep in full effect its existence, rights and franchises as
        a
        limited partnership under the laws of the jurisdiction of its formation.
        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, the Servicer 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, the Servicer 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, the Servicer or the Master Servicer shall be a party,
        or
        any Person succeeding to the business of the Depositor, the Servicer or the
        Master Servicer, shall be the successor of the Depositor, the 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 the Servicer 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, the Servicer, the Master
        Servicer and Others.

       

      None
        of
        the Depositor, the Servicer, the Securities Administrator, the Master Servicer
        or any of the directors, officers, employees or agents of the Depositor,
        the
        Servicer 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, the Servicer, 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, the Servicer, the Securities Administrator, the
        Master
        Servicer and any director, officer, employee or agent of the Depositor, the
        Servicer, 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,
        the Servicer, the Securities Administrator, the Master Servicer and any
        director, officer, employee or agent of the Depositor, the Servicer, 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, the Servicer, 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,
        the Servicer, 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, the Servicer, the
        Securities Administrator and the Master Servicer shall be entitled to be
        reimbursed therefor from the Collection Account or the Distribution Account
        as
        and to the extent provided in Article III and Article IV, any such right
        of
        reimbursement being prior to the rights of the Certificateholders to receive
        any
        amount in the Collection Account and the Distribution Account.

       

      
        
          
          

        

        
          192

          
            

          

        

        
          
          

        

      

       

      Notwithstanding
        anything to the contrary contained herein, the Servicer shall not be liable
        for
        any actions or inactions prior to the Cut-off Date of any prior servicer
        of the
        related Mortgage Loans and the Master Servicer shall not be liable for any
        action or inaction of the Servicer, except to the extent expressly provided
        herein, or the Credit Risk Management Agreement.

       

      SECTION
        7.04. Limitation on Resignation of the Servicer.

       

      (a) Except
        as expressly provided herein, the Servicer shall neither assign all or
        substantially all of its rights under this Agreement or the servicing hereunder
        nor 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,
        the Servicer, 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 Servicer shall not limit the
        obligation of the Servicer to service the related Mortgage Loans pursuant
        to the
        terms and conditions of this Agreement. The Servicer shall not resign from
        the
        obligations and duties hereby imposed on it except (i) upon determination
        that
        its duties hereunder are no longer permissible under applicable law, or (ii)
        upon the Servicer’s written proposal of a successor servicer reasonably
        acceptable to each of the Sponsor, the Depositor and the Master Servicer.
        No
        such resignation under clause (i) above shall become effective unless evidenced
        by an Opinion of Counsel to such effect obtained at the expense of the Servicer
        and delivered to the Trustee and the Rating Agencies. No such resignation
        of the
        Servicer under clause (ii) shall be effective unless:

       

      
        
          
          

        

        
          193

          
            

          

        

        
          
          

        

      

       

      (i) the
        proposed successor Servicer is (1) an affiliate of the Master Servicer that
        services mortgage loans similar to the Mortgage Loans in the jurisdictions
        in
        which the related Mortgaged Properties are located or (2) the proposed successor
        Servicer has a rating of at least “Above Average” by S&P and either a rating
        of at least “RPS2” by Fitch or a rating of at least “SQ2” by
        Moody’s;

       

      (ii) the
        Rating Agencies have confirmed to the Trustee that the appointment of the
        proposed successor servicer as the servicer under this Agreement will not
        result
        in the reduction or withdrawal of the then current ratings of any of the
        Certificates; and

       

      (iii) the
        proposed successor Servicer has a net worth of at least
        $25,000,000.

       

      Notwithstanding
        anything to the contrary, no resignation of the Servicer shall become effective
        until the Master Servicer or a successor Servicer shall have assumed the
        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, the Servicer shall not assign or transfer any
        of
        its rights, benefits or privileges hereunder to any other Person, or delegate
        to
        or subcontract with, or authorize or appoint any other Person to perform
        any of
        the duties, covenants or obligations to be performed by the Servicer hereunder.
        The foregoing prohibition on assignment shall not prohibit the Servicer from
        designating a Sub-Servicer as payee of any indemnification amount payable
        to the
        Servicer hereunder; provided, however, that as provided in Section 3.02,
        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.

       

      (c) Notwithstanding
        anything to the contrary herein, the Servicer may pledge or assign as collateral
        all its rights, title and interest under this Agreement to a lender (the
        “Servicing Rights Lender”), provided, that:

       

      
        
          
          

        

        
          194

          
            

          

        

        
          
          

        

      

       

      (i) upon
        a Servicer Event of Default and receipt of a notice of termination by the
        Servicer, the Servicing Rights Lender may direct the Servicer or its designee
        to
        appoint a successor Servicer pursuant to the provisions, and subject to the
        conditions, set forth in Section 8.02 regarding such appointment of a
        successor Servicer;

       

      (ii) the
        Servicing Rights Lender’s rights are subject to this Agreement; and

       

      (iii) the
        Servicer shall remain subject to termination as servicer under this Agreement
        pursuant to the terms hereof.

       

      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
        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.

       

      
        
          
          

        

        
          195

          
            

          

        

        
          
          

        

      

       

      SECTION
        7.07. Rights of the Depositor in Respect of the Servicer and the Master
        Servicer.

       

      Each
        of
        the Master Servicer and the Servicer shall afford (and any Sub-Servicing
        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 Servicer (and any such Sub-Servicer or Subcontractor,
        as
        applicable) in respect of the Servicer’s rights and obligations hereunder and
        access to officers of the Master Servicer or the 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 the
        Servicer and any Sub-Servicers or Subcontractors. Upon request, each of the
        Master Servicer and the Servicer shall furnish to the Depositor and the Trustee
        its (and any such Sub-Servicer’s) most recent financial statements and such
        other information relating to the Master Servicer’s or the 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 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 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 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 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 the
        Servicer to comply with any applicable law prohibiting disclosure of information
        regarding the Mortgagors and the failure of the Servicer 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 the Servicer to collect, create, collate or otherwise generate any
        information that it does not generate in its usual course of business. The
        Servicer 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 or the Servicer under this Agreement, and may, but is not obligated
        to,
        perform, or cause a designee to perform, any defaulted obligation of the
        Master
        Servicer or the Servicer under this Agreement, or exercise the rights of
        the
        Master Servicer or the Servicer under this Agreement; provided that neither
        the
        Master Servicer nor the Servicer shall be relieved of any of its obligations
        under this Agreement, as applicable, 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 or the
        Servicer and is not obligated to supervise the performance of the Master
        Servicer or the Servicer under this Agreement or otherwise.

       

      
        
          
          

        

        
          196

          
            

          

        

        
          
          

        

      

       

      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 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 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. Each of the Trustee
        and the Servicer 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 the 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, and may rely in good faith
        upon
        the accuracy of information furnished by the Servicer pursuant to the related
        Credit Risk Management Agreement in the performance of its duties thereunder
        and
        hereunder.

       

      SECTION
        7.10. Removal of the Credit Risk Manager. 

       

      The
        Credit Risk Manager may be removed as Credit Risk Manager 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. The Certificateholders shall provide
        written notice of the Credit Risk Manager’s removal to the Trustee. 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.

       

      
        
          
          

        

        
          197

          
            

          

        

        
          
          

        

      

       

      ARTICLE
        VIII

       

      DEFAULT

       

      SECTION
        8.01. Servicer Events of Default.

       

      (a) “Servicer
        Event of Default,” wherever used herein, means with respect to the Servicer any
        one of the following events:

       

      (i) any
        failure by the 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 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 the
        Servicer by the Securities Administrator or the Master Servicer (in which
        case
        notice shall be provided by telecopy), or to the Servicer, the Securities
        Administrator and the Master Servicer by the Holders of Certificates entitled
        to
        at least 25% of the Voting Rights; or

       

      (ii) any
        failure on the part of the Servicer duly to observe or perform in any material
        respect any other of the covenants or agreements on the part of the Servicer
        contained in this Agreement, or the material breach by the 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 the Servicer by the Depositor or the Trustee or to the 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 Servicer can demonstrate to the
        reasonable satisfaction of the Trustee that the 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
        Servicer and such decree or order shall have remained in force undischarged
        or
        unstayed for a period of ninety (90) days; or

       

      (iv) the
        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

       

      
        
          
          

        

        
          198

          
            

          

        

        
          
          

        

      

       

      (v) the
        Servicer shall admit in writing its inability to pay its debts generally
        as they
        become due, file a petition to take advantage of any applicable insolvency
        or
        reorganization statute, make an assignment for the benefit of its creditors,
        or
        voluntarily suspend payment of its obligations; or

       

      (vi) failure
        by the Servicer to duly perform its obligations under Sections 3.17, 3.18
        or 3.19(a) as set forth in those Sections which continues unremedied for
        the
        period set forth in such sections; or

       

      (vii) any
        failure of the 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) in
        the event that Countrywide is no longer Servicer of any of the Mortgage Loans,
        failure of the Servicer to maintain at least an “average” rating from the Rating
        Agencies.

       

      If
        the
        Servicer Event of Default described in clauses (i) through (vi) or (viii)
        of
        this Section  shall occur, then, and in each and every such case, so long
        as the 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 the Servicer under this Agreement,
        to the
        extent permitted by law, and in and to the related Mortgage Loans and the
        proceeds thereof. If the Servicer Event of Default described in clause (vii)
        hereof 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 the 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 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, 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 (10) Business
        Days
        subsequent to such notice) to provide the Master Servicer with all documents
        and
        records requested by it to enable it to assume the defaulting Servicer’s
        functions under this Agreement, and to cooperate with the Master Servicer
        in
        effecting the termination of the defaulting Servicer’s responsibilities and
        rights under this Agreement, including, without limitation, the transfer
        within
        one (1) Business Day to the Master 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 Collection Account held by or on behalf of the
        defaulting 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 the 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 the 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
        the Servicer Event of Default of which it has knowledge as provided
        above.

       

      
        
          
          

        

        
          199

          
            

          

        

        
          
          

        

      

       

      The
        Master Servicer 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 defaulting 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 related 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, or as otherwise set forth in this Agreement
        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

       

      
        
          
          

        

        
          200

          
            

          

        

        
          
          

        

      

       

      (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 or 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.

       

      
        
          
          

        

        
          201

          
            

          

        

        
          
          

        

      

       

      On
        and
        after the time the Master Servicer receives a notice of termination, the
        Trustee
        shall be the successor in all respects to the Master Servicer (and, if
        applicable, the Securities Administrator) in its capacity as Master Servicer
        (and, if applicable, the Securities Administrator) under this Agreement and
        the
        transactions set forth or provided for herein, and all the responsibilities,
        duties and liabilities relating thereto and arising thereafter shall be assumed
        by the Trustee (except for any representations or warranties of the Master
        Servicer under this Agreement, the responsibilities, duties and liabilities
        contained in Section 2.03 and the obligation to deposit amounts in respect
        of
        losses pursuant to Section 3.10) by the terms and provisions hereof including,
        without limitation, the Master Servicer’s obligations to make P&I Advances
        no later than each Distribution Date pursuant to Section 5.03; provided,
        however, that if the Trustee is prohibited by law or regulation from obligating
        itself to make advances regarding delinquent mortgage loans, then the Trustee
        shall not be obligated to make P&I Advances pursuant to Section 5.03; and
        provided further, that any failure to perform such duties or responsibilities
        caused by the Master Servicer’s failure to provide information required by
        Section 8.01 shall not be considered a default by the Trustee as successor
        to
        the Master Servicer hereunder and neither the Trustee nor any other successor
        master servicer shall be liable for any acts or omissions of the terminated
        servicer. As compensation therefor, the Trustee shall be entitled to the
        Master
        Servicing Fee and all funds relating to the Loans, investment earnings on
        the
        Distribution Account and all other remuneration to which the Master Servicer
        would have been entitled if it had continued to act hereunder.

       

      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.

       

      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.

       

      
        
          
          

        

        
          202

          
            

          

        

        
          
          

        

      

       

      SECTION
        8.02. Master Servicer to Act; Appointment of Successor.

       

      (a) On
        and after the time the Servicer receives a notice of termination, the Master
        Servicer shall be the successor in all respects to the Servicer in its capacity
        as the Servicer under this Agreement 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
        (except for any representations or warranties of the Servicer under this
        Agreement the responsibilities, duties and liabilities contained in Section
        2.03
        of this Agreement and the obligation of the Servicer 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 Servicer’s obligations
        to make P&I Advances pursuant to Section 5.03 of this Agreement; provided,
        however, that if the Master Servicer is prohibited by law or regulation from
        obligating itself to make advances regarding delinquent mortgage loans, then
        the
        Master Servicer shall not be obligated to make P&I Advances pursuant to
        Section 5.03 of this Agreement; and provided further, that any failure to
        perform such duties or responsibilities caused by the Servicer’s failure to
        provide information required by Section 8.01 of this Agreement shall not
        be
        considered a default by the Master Servicer as successor to the 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 Servicer’s failure to provide information
        required by Section 8.01 of this Agreement shall not be considered a default
        by
        the Master Servicer as successor to the Servicer. As compensation therefor,
        the
        Master Servicer shall be entitled to the Servicing Fee and all funds relating
        to
        the related Mortgage Loans to which the terminated Servicer would have been
        entitled if it had continued to act hereunder. 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 in the assumption of all or any
        part of
        the responsibilities, duties or liabilities of the terminated Servicer under
        this Agreement.

       

      Notwithstanding
        anything herein to the contrary, in no event shall the Trustee or the Master
        Servicer be liable for any Servicing Fee or Master Servicing Fee, as applicable,
        or for any differential in the amount of the Servicing Fee or Master Servicing
        Fee, as applicable, or paid hereunder and the amount necessary to induce
        any
        successor Servicer or successor Master Servicer to act as successor Servicer
        or
        successor Master Servicer under this 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 Servicer (other than liabilities of the Servicer hereunder
        incurred prior to termination of the Servicer under Section 8.01 herein)
        under this Agreement as if originally named as a party to this
        Agreement.

       

      
        
          
          

        

        
          203

          
            

          

        

        
          
          

        

      

       

      (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 the 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 the Servicer under this Agreement shall be
        effective until the assumption by the successor of all of the 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 Servicer
        as
        such hereunder. 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 the 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 the Master Servicer or the Servicer pursuant to
        Section 8.01(a) or (b) of this Agreement, or any appointment of a successor
        to the Master Servicer or the Servicer pursuant to Section 8.02 of this
        Agreement, the Trustee shall give prompt written notice thereof to the
        Certificateholders 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
        the
        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.

       

      
        
          
          

        

        
          204

          
            

          

        

        
          
          

        

      

       

      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 the
        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.

       

      
        
          
          

        

        
          205

          
            

          

        

        
          
          

        

      

       

      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 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) 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;

       

      
        
          
          

        

        
          206

          
            

          

        

        
          
          

        

      

       

      (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;

       

      
        
          
          

        

        
          207

          
            

          

        

        
          
          

        

      

       

      (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 the Collection Account, (b) the investment of funds held in
        the
        Distribution Account, (c) the investment of funds held in the Reserve Fund
        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;

       

      (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; and

       

      
        
          
          

        

        
          208

          
            

          

        

        
          
          

        

      

       

      (x) Should
        the Trustee or the Securities Administrator deem the nature of any action
        required on its part to be unclear, the Trustee or the Securities Administrator
        may require, prior to taking such action, that it be provided by the Depositor
        with reasonable further instructions.

       

      (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) The
        Trustee, in its capacity as Supplemental Interest Trust Trustee pursuant
        to the
        Swap Agreement, hereby directs the Securities Administrator and the Securities
        Administrator is hereby empowered under this Agreement to act on
        behalf
        of
        the
        Supplemental Interest Trust Trustee. Any
        funds
        payable by the Securities Administrator on
        behalf
        of the Supplemental Interest Trust Trustee and in connection with its
        obligations in respect of
        the
        Supplemental Interest Trust under the Swap Agreement, shall be paid from
        funds
        of the Supplemental Interest Trust in accordance with the terms and provisions
        of the Swap Agreement. Notwithstanding anything to the contrary contained
        herein
        or in the Swap Agreement, neither
        the Supplemental Interest Trust Trustee nor the
        Securities Administrator shall
        be
        required to make any payments from its own funds to the Swap Provider under
        the
        Swap Agreement. The Trustee is hereby directed by the Depositor to execute
        the
        Cap Contracts on behalf of the Trust Fund in the form presented to it by
        the
        Depositor and shall have no responsibility for the contents of the Cap
        Contracts, including, without limitation, the representations and warranties
        contained therein. Any funds payable by the Trustee under the Cap Contracts
        at
        closing shall be paid by the Depositor. Notwithstanding anything to the contrary
        contained herein or in the Cap Contracts, the Trustee shall not be required
        to
        make any payments to the Cap Counterparty under the Cap Contracts.

       

      (d) None
        of the Securities Administrator, the Master Servicer, the Servicer, the Sponsor,
        the Depositor, the Custodian or the Trustee shall be responsible for the
        acts or
        omissions of the others or the Swap Provider or the Cap Counterparty, 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 Sections 2.11 and 9.12
        of this Agreement), the Swap 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 the Collection Account by the Servicer, other
        than with respect to the Securities Administrator any funds held by it or
        on
        behalf of the Trustee in accordance with Sections 3.23, 3.24, and 5.07 of
        this Agreement.

       

      
        
          
          

        

        
          209

          
            

          

        

        
          
          

        

      

       

      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, Custodian and Securities
        Administrator.

       

      The
        fees
        of the Trustee and the Securities Administrator hereunder, and of the Custodian
        under the 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 Custodian
        and any director, officer, employee or agent of the Trustee, the Securities
        Administrator and the Custodian 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 Custodian 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 the Swap Agreement and any and all other agreements
        related
        hereto, other than any loss, liability or expense (i) solely with respect
        to the
        Trustee, for which the Trustee is indemnified by the Master Servicer or the
        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, Custodian, 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 Custodian. 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.

       

      
        
          
          

        

        
          210

          
            

          

        

        
          
          

        

      

       

      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, for the appointment of a successor
        securities administrator which satisfies the eligibility criteria set forth
        herein. 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.

       

      
        
          
          

        

        
          211

          
            

          

        

        
          
          

        

      

       

      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.

       

      
        
          
          

        

        
          212

          
            

          

        

        
          
          

        

      

       

      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.

       

      
        
          
          

        

        
          213

          
            

          

        

        
          
          

        

      

       

      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.

       

      
        
          
          

        

        
          214

          
            

          

        

        
          
          

        

      

       

      SECTION
        9.12. Representations and Warranties.

       

      The
        Trustee hereby represents and warrants to the Master Servicer, the Securities
        Administrator, the Servicer 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.

       

      
        
          
          

        

        
          215

          
            

          

        

        
          
          

        

      

       

      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 Servicer 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 Servicer to make remittances to the Securities
        Administrator and the Securities Administrator to make payments in respect
        of
        the REMIC I Regular Interests, REMIC II 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 Master Servicer 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 (i) the expiration of 21 years from the death of the
        last
        survivor of the descendants of Joseph P. Kennedy, the late ambassador of
        the
        United States to the Court of St. James, living on the date hereof and (ii)
        the
        Last Scheduled Distribution Date. The purchase by the Master Servicer 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 and the Trustee, 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), (ii) any amounts due and owing the Swap Provider under the
        Swap Agreement as of the termination date, plus (iii) any amounts due the
        Servicer and the Master Servicer in respect of unpaid Servicing Fees and
        Master
        Servicing Fees and outstanding P&I Advances and Servicing Advances.

       

      (b) The
        Master Servicer 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 Master Servicer 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
        has been 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
        Certificates.

       

      
        
          
          

        

        
          216

          
            

          

        

        
          
          

        

      

       

      (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 Master Servicer, 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 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 Master Servicer, the Master
        Servicer 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 Servicer, the Master Servicer,
        the
        Trustee and the Custodian from such funds deposited in the Distribution Account
        (i) any amounts which the Servicer would be permitted to withdraw and retain
        from the Collection Account pursuant to Section 3.09 of this Agreement, as
        if
        such funds had been deposited therein (including all unpaid Servicing Fees
        and
        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 Custodian, the Servicer
        and the Swap Provider from amounts on deposit in the Distribution Account
        pursuant to the terms of this 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 Master Servicer 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 (1) 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.

       

      
        
          
          

        

        
          217

          
            

          

        

        
          
          

        

      

       

      SECTION
        10.02. Additional Termination Requirements.

       

      (a) In
        the event that the Master Servicer 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 Master Servicer;

       

      (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 Master Servicer 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 Master Servicer (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 Master
        Servicer 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.

       

      
        
          
          

        

        
          218

          
            

          

        

        
          
          

        

      

       

      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. For the purposes of the REMIC election in
        respect of REMIC II, the REMIC II Regular Interests 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 Class A Certificates, the Mezzanine
        Certificates, the Class P Certificates, the Class IO Interest and the Class
        CE
        Certificates (exclusive of any right to receive payments from or obligation
        to
        make payments to the Reserve Fund or the Supplemental Interest Trust) shall
        be
        designated as the Regular Interests in REMIC III and the Class R-III Interest
        shall be designated as the Residual Interests in REMIC III. 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, the REMIC II Regular Interests, the Class IO Interest 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.

       

      
        
          
          

        

        
          219

          
            

          

        

        
          
          

        

      

       

      (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 borne 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.

       

      
        
          
          

        

        
          220

          
            

          

        

        
          
          

        

      

       

      (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, 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 Servicer pursuant to Section 11.03 of
        this Agreement, if such tax arises out of or results from a breach by the
        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, the 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
        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.

       

      
        
          
          

        

        
          221

          
            

          

        

        
          
          

        

      

       

      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 Servicer
        including, without limitation, any reasonable attorneys fees imposed on or
        incurred by the Trust Fund, the Depositor, the Master Servicer, the Securities
        Administrator or the 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) The
        Servicer agrees to indemnify the Trust Fund, the Depositor, the Master Servicer,
        the Securities Administrator 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
        or
        the Trustee, as a result of the Servicer’s failure to perform its covenants set
        forth in Article III in accordance with the standard of care of the Servicer
        set
        forth in this Agreement.

       

      (c) The
        Master Servicer agrees to indemnify the Trust Fund, the Depositor, the 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 Servicer 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 Servicer or the Trustee including any
        reasonable attorneys’ fees imposed on or incurred by the Trust Fund, the
        Depositor, the 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.

       

      
        
          
          

        

        
          222

          
            

          

        

        
          
          

        

      

       

      ARTICLE
        XII

       

      MISCELLANEOUS
        PROVISIONS

       

      SECTION
        12.01. Amendment.

       

      This
        Agreement may be amended from time to time by the Depositor, the Servicer,
        the
        Master Servicer, the Securities Administrator and the Trustee, with the consent
        of the Swap Provider (which consent shall not be unreasonably withheld) 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, the Servicer,
        the Master Servicer, the Securities Administrator and the Trustee with the
        consent of the Swap Provider (which consent shall not be unreasonably withheld)
        and 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 the 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.

       

      
        
          
          

        

        
          223

          
            

          

        

        
          
          

        

      

       

      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 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 upon direction of the Trustee accompanied
        by an
        Opinion of Counsel (which Opinion of Counsel shall not be at the expense
        of the
        Trustee) 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.

       

      
        
          
          

        

        
          224

          
            

          

        

        
          
          

        

      

       

      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, New York,
        Attention: Legal Department (telecopy number: (212) 797-4561),or such other
        address or telecopy number as may hereafter be furnished to the Servicer,
        the
        Master Servicer, the Securities Administrator and the Trustee in writing
        by the
        Depositor, (b) 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-NC2 (telecopy number: (410) 715-2380), or such other address
        or
        telecopy number as may hereafter be furnished to the Trustee, the Depositor
        and
        the Servicer in writing by the Master Servicer or the Securities Administrator,
        (c) 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
        Servicer, the Master Servicer, the Securities Administrator and the Depositor
        in
        writing by the Trustee and (d) in the case of the Servicer, Countrywide Home
        Loans Servicing LP, 400 Countrywide Way, Simi Valley, California 93065,
        Attention: John Lindberg and Yuan Li (telecopy number: (800) 658-6209) ,
        with a
        copy to Countrywide Home Loans Inc., 4500 Park Granada, Calabasas, California
        91302, Attention: General Counsel, 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 the Servicer. 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.

       

      
        
          
          

        

        
          225

          
            

          

        

        
          
          

        

      

       

      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 the Servicer, the Master Servicer or the
        Trustee;

       

      4. The
        repurchase or substitution of Mortgage Loans pursuant to or as contemplated
        by
        Section 2.03 of this Agreement;

       

      5. The
        final payment to the Holders of any Class of Certificates; and

       

      6. Any
        change in the location of the Distribution Account.

       

      
        
          
          

        

        
          226

          
            

          

        

        
          
          

        

      

       

      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.

       

      The
        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;
        and

       

      2. Each
        assessment of compliance and attestation report described in Section 3.18
        of this Agreement.

       

      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 Moody’s Investors Service, Inc., 99 Church Street,
        New York, New York 10007, 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 Account 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.

       

      
        
          
          

        

        
          227

          
            

          

        

        
          
          

        

      

       

      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. Intention of the Parties and Interpretation.

       

      Each
        of
        the parties acknowledges and agrees that the purpose of Sections 3.17, 3.18,
        3.19, 3.27, 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. The Master Servicer and
        the
        Servicer acknowledge and agree that the purpose of Sections 3.17, 3.18, 3.19
        and
        3.27 of this Agreement is to facilitate compliance by the Servicer and the
        Depositor with the provisions of Regulation AB and related rules and regulations
        of the Commission. None of the Master Servicer, the Servicer, the Trust or
        the
        Depositor shall exercise its right to request delivery of information or
        other
        performance under these provisions other than in good faith, or for purposes
        other than compliance with the Securities Act, the Exchange Act and the rules
        and regulations of the Commission thereunder. The 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,
        and agrees to negotiate in good faith with the Master Servicer or the Depositor
        with regard to any reasonable requests for delivery of information under
        these
        provisions on the basis of evolving interpretations of Regulation AB.
        The
        Servicer
        shall cooperate fully with the Master
        Servicer
        deliver to the Master
        Servicer and
        the Depositor, any and all statements, reports, certifications, records and
        any
        other information necessary to permit the Master Servicer or the Depositor
        to
        comply with the provisions of Regulation AB, together with such disclosures
        relating to the Servicer,
        and any parties or items identified in writing by the Servicer, including,
        any
        Sub-Servicer or the servicing of the Mortgage Loans necessary in order to
        effect
        such compliance.

       

      The
        Master
        Servicer
        agrees that it will cooperate with the Servicer
        and provide sufficient and timely notice of any information requirements
        hereunder. The Master Servicer will make all reasonable efforts to contain
        requests for information, reports or any other materials to items required
        for
        compliance with Regulation AB, and shall not request information which is
        not
        required for such compliance. 

       

      
        
          
          

        

        
          228

          
            

          

        

        
          
          

        

      

       

      SECTION
        12.12. Indemnification.

       

      Each
        of
        the Depositor, Master Servicer, Securities Administrator and any Servicing
        Function Participant engaged by such party (other than the Servicer),
        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, Annual Statement of Compliance or any
        information, data or materials required to be included in any 1934 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
        Annual Statement of Compliance, 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 herein 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.

       

      
        
          
          

        

        
          229

          
            

          

        

        
          
          

        

      

    

     

    

      IN
        WITNESS WHEREOF, the Depositor, the Servicer, 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/
                  Evelyn Echevarria 

                Name:
                  Evelyn Echevarria

                Title:
                  Vice President

                 

                 

                By:
                  /s/
                  Doris J. Hearn 

                Name:
                  Doris J. Hearn

                Title:
                  Vice President

                 

                 

                COUNTRYWIDE
                  HOME LOANS 

                SERVICING
                  LP, as Servicer

                 

                By:
                  Countrywide GP, Inc., its General Partner

                 

                By:
                  /s/
                  Jordan Cohen

                Name:
                  Jordan Cohen

                Title:
                  Vice President

                 

                 

                HSBC
                  BANK USA, NATIONAL ASSOCIATION,

                not
                  in its individual capacity but solely as Trustee

                 

                 

                By:
                  /s/
                  Fernando Acebedo

                Name:
                  Fernando Acebedo

                Title:
                  Vice President

              

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

      
        	
                WELLS
                  FARGO BANK, N.A.,

                as
                  Master Servicer and Securities Administrator

                 

                 

                By:
                  /s/
                  Stacey M. Taylor

                Name:
                  Stacey M. Taylor

                Title:
                  Vice President

                 

                 

                Acknowledged
                  and Agreed for purposes of Section 9.05:

                 

                 

                DB
                  STRUCTURED PRODUCTS, INC

                

                 

                By:
                  /s/
                  Paul Mangione

                Name:
                  Paul Mangione

                Title:
                  Managing Director

                 

                 

                By:
                  /s/
                  Susan Valenti

                Name:
                  Susan Valenti

                Title:
                  Director

                 

                 

                Acknowledged
                  and Agreed for purposes of Sections 7.08, 7.09 and
                  7.10:

                 

                 

                CLAYTON
                  FIXED INCOME SERVICES INC. 

                 

                 

                By:
                  /s/
                  Kevin J. Kanouff

                Name:
                  Kevin J. Kanouff

                Title:
                  President and General Counsel

              

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	
                STATE
                  OF North Carolina

              	
                )

              
	 	
                )
                  ss.:

              
	
                COUNTY
                  OF Mecklenberg

              	
                )

              
	 	 

      

      On
        the
        5th day of September 2006, before me, a notary public in and for said State,
        personally appeared Evelyn Echevarria known to me to be a officer 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.

       

       

      
        	
                /s/
                  Cynthia A. Reames

                Notary
                  Public

              

      

       

       

      
        	
                [Notarial
                  Seal]

              	
                My
                  commission expires 7/4/2011

              

      

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      

      
        	
                STATE
                  OF North Carolina

              	
                )

              
	 	
                )
                  ss.:

              
	
                COUNTY
                  OF Mecklenberg

              	
                )

              
	 	 

      

      On
        the
        5th day of September 2006, before me, a notary public in and for said State,
        personally appeared Doris J. Hearn, known to me to be a officer 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.

       

      
         

        
          	
                  /s/
                    Cynthia A. Reames

                  Notary
                    Public

                

        

         

      

      
      

      
        	
                [Notarial
                  Seal]

              	
                My
                  commission expires 7/4/2011

              

      

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      

      
        	
                STATE
                  OF Maryland

              	
                )

              
	 	
                )
                  ss.:

              
	
                COUNTY
                  OF Anne Arundel

              	
                )

              
	 	 

      

      On
        the
        15th day of September 2006, before me, a notary public in and for said State,
        personally appeared Stacey M. Taylor, known to me to be a Vice President
        of
        Wells Fargo Bank, National Association, one of the national banking associations
        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.

       

      
         

        
          	
                  
                    /s/
                      Jennifer Richardson

                    Notary
                      Public

                  

                

        

         

      

       

      
      

      
        	
                [Notarial
                  Seal]

              	
                My
                  commission expires 4/1/2010

              

      

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

       

      
        	
                STATE
                  OF California

              	
                )

              
	 	
                )
                  ss.:

              
	
                COUNTY
                  OF Los Angeles

              	
                )

              
	 	 

      

      On
        the
        15th day of September 2006, before me, a notary public in and for said State,
        personally appeared Jordan Cohen known to me to be a Vice President of
        Countrywide Home Loans Servicing LP, one of the limited partnerships that
        executed the within instrument, and also known to me to be the person who
        executed it on behalf of said limited partnership, and acknowledged to me
        that
        such limited partnership 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.

       

      
         

        
          	
                  /s/
                    Glenda J. Daniel

                  Notary
                    Public

                

        

         

      

       

      
        	
                [Notarial
                  Seal]

              	
                My
                  commission expires 10/19/2009

              

      

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      

      
        	
                STATE
                  OF New York

              	
                )

              
	 	
                )
                  ss.:

              
	
                COUNTY
                  OF New York

              	
                )

              
	 	 

      

      On
        the
        15th day of September 2006, before me, a notary public in and for said State,
        personally appeared Fernando Acebedo known to me to be a Vice President of
        HSBC
        Bank USA, National Association, one of the national banking associations
        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.

       

      
         

        
          	
                  /s/
                    Ecliff C. Jackman

                  Notary
                    Public

                

        

         

      

       

       

      
        	
                [Notarial
                  Seal]

              	
                My
                  commission expires 6/28/2008

              

      

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    EXHIBIT
      A-1

     

    FORM
      OF
      CLASS A-[1][2A][2B][2C][2D] 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.

     

    PRIOR
      TO THE TERMINATION OF THE SUPPLEMENTAL INTEREST TRUST, ANY PERSON ACQUIRING
      THIS
      CERTIFICATE SHALL BE DEEMED TO HAVE MADE THE REPRESENTATIONS IN SECTION 6.02(c)
      OF THE AGREEMENT REFERRED TO HEREIN.

     

    
      
        
        

      

      
        A-1-1

        
          

        

      

      
        
        

      

    

    

    
      	
              Series
                2006-NC2, Class A-[1][2A][2B][2C][2D]

            	 	
              Aggregate
                Certificate Principal Balance of the Class A-[1][2A][2B][2C][2D]
                Certificates as of the Issue Date: $_____________

            
	 	 	 
	
              Pass-Through
                Rate: Variable

            	 	
              Denomination:
                $____________

            
	 	 	 
	
              Date
                of Pooling and Servicing Agreement and Cut-off Date: September 1,
                2006

            	 	
              Master
                Servicer: Wells Fargo Bank, N.A.

            
	 	 	 
	
              First
                Distribution Date: October 25, 2006

            	 	
              Trustee:
                HSBC Bank USA, National Association

            
	 	 	 
	
              No.
                __

            	 	
              Issue
                Date: September 15, 2006

            
	 	 	
              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-NC2

    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 SERVICER, 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 A-[1][2A][2B][2C][2D] Certificates
      as
      of the Issue Date) in that certain beneficial ownership interest evidenced
      by
      all of the Class A-[1][2A][2B][2C][2D] Certificates in REMIC III 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, N.A. as master servicer (the “Master Servicer”) and securities
      administrator (the “Securities Administrator”), Countrywide Home Loans Servicing
      LP as servicer (the “Servicer”) and HSBC Bank USA, National Association as
      trustee (the “Trustee”), a summary of certain of the pertinent provisions of
      which is set forth hereafter. 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.

     

    
      
        
        

      

      
        A-1-2

        
          

        

      

      
        
        

      

    

     

    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-[1][2A][2B][2C][2D] 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 A-[1][2A][2B][2C][2D]
      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-[1][2A][2B][2C][2D]
      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 applicable Net WAC Pass-Through Rate for such
      Distribution Date.

     

    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 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 and payments received pursuant to
      the
      Swap Agreement and the [Group I] [Group II] Cap Contract, all as more
      specifically set forth herein and in the Agreement. As provided in the
      Agreement, withdrawals from the Collection Account 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. 

     

    
      
        
        

      

      
        A-1-3

        
          

        

      

      
        
        

      

    

     

    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 Servicer 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 Servicer with the consent of the Swap Provider and 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.

     

    Prior
      to
      the termination of the Supplemental Interest Trust, any transferee of this
      Certificate shall be deemed to make the representations in 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
      Servicer and any agent of the Depositor, the Master Servicer, the Trustee,
      the
      Securities Administrator or the 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
      Servicer nor any such agent shall be affected by notice to the
      contrary.

     

    
      
        
        

      

      
        A-1-4

        
          

        

      

      
        
        

      

    

     

    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; 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 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.

     

    
      
        
        

      

      
        A-1-5

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the Securities Administrator has caused this Certificate to
      be
      duly executed.

     

    Dated:

    
      	 	 	 
	 	WELLS
              FARGO BANK,
              N.A.
	 	
              as
                Securities Administrator

            
	 
 	 
 	 
 
	 	By:  	 
	 	
              

              Authorized
                Officer

            

    

     

    

    CERTIFICATE
      OF AUTHENTICATION

     

    This
      is
      one of the Class A-[1][2A][2B][2C][2D] Certificates referred to in the
      within-mentioned Agreement.

     

    
      	 	 	 
	 	WELLS
              FARGO BANK,
              N.A.
	 	
              as
                Securities Administrator

            
	 
 	 
 	 
 
	 	By:  	 
	 	
              

              Authorized
                Signatory

            

    

     

     

    
      
        
        

      

      
        A-1-6

        
          

        

      

      
        
        

      

    

    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

            

    

     

    
      
        
        

      

      
        A-1-7

        
          

        

      

      
        
        

      

    

     

    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.

            	 

    

    

     

    
      
        
        

      

      
        A-1-8

        
          

        

      

      
        
        

      

    

    EXHIBIT
      A-2

     

    FORM
      OF
      CLASS M-[1][2][3][4][5][6][7][8][9] 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 [,/AND] CLASS M-5 CERTIFICATES [,/AND] CLASS
      M-6
      CERTIFICATES [,/AND] CLASS M-7 CERTIFICATES [/AND] CLASS M-8 CERTIFICATES]
      TO
      THE EXTENT DESCRIBED IN THE AGREEMENT REFERRED TO HEREIN.

     

    ANY
      TRANSFEREE OF THIS CERTIFICATE SHALL BE DEEMED TO MAKE THE REPRESENTATIONS
      SET
      FORTH IN 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.

     

    
      
        
        

      

      
        A-2-1

        
          

        

      

      
        
        

      

    

    

    
      	
              Series
                2006-NC2, Class M-[1][2][3][4][5][6][7][8][9]

            	 	
              Aggregate
                Certificate Principal Balance of the Class M-[1][2][3][4][5][6][7][8][9]
                Certificates as of the Issue Date: $______________

            
	 	 	 
	
              Pass-Through
                Rate: Variable

            	 	
              Denomination:
                $______________

            
	 	 	 
	
              Date
                of Pooling and Servicing Agreement 

              and
                Cut-off Date: September 1, 2006

            	 	
              Master
                Servicer: Wells Fargo Bank, N.A.

            
	 	 	 
	
              First
                Distribution Date: October 25, 2006

            	 	
              Trustee:
                HSBC Bank USA, National Association

            
	 	 	 
	
              No.___

            	 	
              Issue
                Date: September 15, 2006

            
	 	 	 
	 	 	
              CUSIP:_________________

            

    

    

    ACE
      SECURITIES CORP. HOME EQUITY LOAN TRUST, SERIES 2006-NC2

    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 SERVICER, 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
      M-[1][2][3][4][5][6][7][8][9] Certificates as of the Issue Date) in that certain
      beneficial ownership interest evidenced by of all the Class
      M-[1][2][3][4][5][6][7][8][9] Certificates in REMIC III 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,
      N.A. as master servicer (the “Master Servicer”) and securities administrator
      (the “Securities Administrator”), Countrywide Home Loans Servicing LP as
      servicer (the “Servicer”) and HSBC Bank USA, National Association as trustee
      (the “Trustee”), a summary of certain of the pertinent provisions of which is
      set forth hereafter. 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.

     

    
      
        
        

      

      
        A-2-2

        
          

        

      

      
        
        

      

    

     

    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][6][7][8][9] 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
      M-[1][2][3][4][5][6][7][8][9] 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][6][7][8][9] 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 equal 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 applicable Net WAC Pass-Through Rate for such
      Distribution Date.

     

    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 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 and payments received pursuant to
      the
      Swap Agreement and the Cap Contracts, all as more specifically set forth herein
      and in the Agreement. As provided in the Agreement, withdrawals from the
      Collection Account 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.

     

    
      
        
        

      

      
        A-2-3

        
          

        

      

      
        
        

      

    

     

    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 Servicer 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 Servicer with the consent of the Swap Provider and 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.

     

    Any
      transferee of this Certificate shall be deemed to make the representations
      set
      forth in 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
      Servicer and any agent of the Depositor, the Master Servicer, the Trustee,
      the
      Securities Administrator or the 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
      Servicer nor any such agent shall be affected by notice to the
      contrary.

     

    
      
        
        

      

      
        A-2-4

        
          

        

      

      
        
        

      

    

     

    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; 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.

     

    
      
        
        

      

      
        A-2-5

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the Securities Administrator has caused this Certificate to
      be
      duly executed.

     

    Dated:

    
      	 	 	 
	 	WELLS
              FARGO BANK,
              N.A.
	 	
              as
                Securities Administrator

            
	 
 	 
 	 
 
	 	By:  	 
	 	
              

              Authorized
                Officer

            

    

    
 

    CERTIFICATE
      OF AUTHENTICATION

     

    This
      is
      one of the Class M-[1][2][3][4][5][6][7][8][9] Certificates referred to in
      the
      within-mentioned Agreement.

     

    
      	 	 	 
	 	WELLS
              FARGO BANK,
              N.A.
	 	
              as
                Securities Administrator

            
	 
 	 
 	 
 
	 	By:  	 
	 	
              

              Authorized
                Signatory

            

    

     

     

    
      
        
        

      

      
        A-2-6

        
          

        

      

      
        
        

      

    

    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

            

    

    
 

    
      
        
        

      

      
        A-2-7

        
          

        

      

      
        
        

      

    

     

    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.

            	 

    

    

    
      
        
        

      

      
        A-2-8

        
          

        

      

      
        
        

      

    

    EXHIBIT
      A-3

     

    FORM
      OF
      CLASS M-[10][11] 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, CLASS M-1 CERTIFICATES,
      CLASS M-2 CERTIFICATES, CLASS M-3 CERTIFICATES, CLASS M-4 CERTIFICATES, CLASS
      M-5 CERTIFICATES, CLASS M-6 CERTIFICATES, CLASS M-7 CERTIFICATES, CLASS M-8
      CERTIFICATES [,/AND] CLASS M-9 CERTIFICATES [[AND] CLASS M-10 CERTIFICATES]
      TO
      THE EXTENT DESCRIBED IN 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.

     

    THIS
      CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES
      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.

     

    
      
        
        

      

      
        A-3-1

        
          

        

      

      
        
        

      

    

     

    [THIS
      CERTIFICATE IS A REGULATION S TEMPORARY GLOBAL CERTIFICATE FOR PURPOSES OF
      REGULATION S UNDER THE ACT. PRIOR TO THE DATE THAT IS 40 DAYS AFTER THE LATER
      OF
      (I) THE COMMENCEMENT OF THE OFFERING OF THE OFFERED CERTIFICATES AND (II) THE
      CLOSING DATE, THIS CERTIFICATE MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE
      TRANSFERRED IN THE UNITED STATES OR TO A U.S. PERSON EXCEPT PURSUANT TO AN
      EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE ACT.]

     

    [NO
      BENEFICIAL OWNERS OF THIS REGULATION S TEMPORARY GLOBAL CERTIFICATE SHALL BE
      ENTITLED TO RECEIVE PAYMENTS OF PRINCIPAL OR INTEREST HEREIN UNLESS THE REQUIRED
      CERTIFICATIONS HAVE BEEN DELIVERED PURSUANT TO THE TERMS OF THE AGREEMENT (AS
      DEFINED HEREIN).]

     

    [THE
      HOLDER OF THIS REGULATION S PERMANENT GLOBAL CERTIFICATE BY ITS ACCEPTANCE
      HEREOF AGREES NOT TO OFFER, SELL OR OTHERWISE TRANSFER SUCH CERTIFICATE WITHIN
      THE UNITED STATES OR TO U.S. PERSONS (AS DEFINED IN REGULATION S UNDER THE
      ACT)
      PRIOR TO THE DATE WHICH IS THE LATER OF (I) 40 DAYS AFTER THE LATER OF THE
      CLOSING DATE AND (II) THE DATE ON WHICH THE REQUISITE CERTIFICATIONS ARE DUE
      TO
      AND PROVIDED TO THE TRUSTEE AND SECURITIES ADMINISTRATOR PURSUANT TO THE
      AGREEMENT (AS DEFINED BELOW), EXCEPT PURSUANT TO AN EXEMPTION FROM THE
      REGISTRATION REQUIREMENTS OF THE ACT.]

     

    
      
        
        

      

      
        A-3-2

        
          

        

      

      
        
        

      

    

     

    NO
      TRANSFER OF THIS CERTIFICATE TO A PLAN SUBJECT TO THE EMPLOYEE RETIREMENT INCOME
      SECURITY ACT OF 1974, AS AMENDED (“ERISA”) OR SECTION 4975 OF THE CODE, ANY
      PERSON ACTING, DIRECTLY OR INDIRECTLY, ON BEHALF OF ANY SUCH PLAN OR ANY PERSON
      USING “PLAN ASSETS” TO ACQUIRE THIS CERTIFICATE SHALL BE MADE EXCEPT IN
      ACCORDANCE WITH SECTION 6.02(c) OF THE AGREEMENT REFERRED TO
      HEREIN.

     

    
      
        
        

      

      
        A-3-3

        
          

        

      

      
        
        

      

    

     

    
      	
              Series
                2006-NC2, Class M-[10][11]

            	 	
              Aggregate
                Certificate Principal Balance of the Class M-[10][11] Certificates
                as of
                the Issue Date: $______________

            
	 	 	 
	
              Pass-Through
                Rate: Variable

            	 	
              Denomination:
                $______________

            
	 	 	 
	
              Date
                of Pooling and Servicing Agreement 

              and
                Cut-off Date: September 1, 2006

            	 	
              Master
                Servicer: Wells Fargo Bank, N.A.

            
	 	 	 
	
              First
                Distribution Date: October 25, 2006

            	 	
              Trustee:
                HSBC Bank USA, National Association

            
	 	 	 
	
              No.___

            	 	
              Issue
                Date: September 15, 2006

            
	 	 	 
	 	 	
              CUSIP:_________________

            

    

    

    ACE
      SECURITIES CORP. HOME EQUITY LOAN TRUST, SERIES 2006-NC2

    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 SERVICER, 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 M-[10][11] Certificates
      as
      of the Issue Date) in that certain beneficial ownership interest evidenced
      by of
      all the Class M-[10][11] Certificates in REMIC III 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, N.A.
      as
      master servicer (the “Master Servicer”) and securities administrator (the
“Securities Administrator”), Countrywide Home Loans Servicing LP as servicer
      (the “Servicer”) and HSBC Bank USA, National Association as trustee (the
“Trustee”), a summary of certain of the pertinent provisions of which is set
      forth hereafter. 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.

     

    
      
        
        

      

      
        A-3-4

        
          

        

      

      
        
        

      

    

     

    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-[10][11]
      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 M-[10][11] 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-[10][11] 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 equal 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 applicable Net WAC Pass-Through Rate for such
      Distribution Date.

     

    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 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 and payments received pursuant to
      the
      Swap Agreement and the Cap Contracts, all as more specifically set forth herein
      and in the Agreement. As provided in the Agreement, withdrawals from the
      Collection Account 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.

     

    
      
        
        

      

      
        A-3-5

        
          

        

      

      
        
        

      

    

     

    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 Servicer 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 Servicer with the consent of the Swap Provider and 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 shall be made unless the transfer is made pursuant
      to an effective registration statement under the 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 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 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
      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.

     

    
      
        
        

      

      
        A-3-6

        
          

        

      

      
        
        

      

    

     

    No
      transfer of this Certificate to a Plan subject to ERISA or Section 4975 of
      the
      Code, any Person acting, directly or indirectly, on behalf of any such Plan
      or
      any Person using “Plan Assets” to acquire this Certificate shall 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
      Servicer and any agent of the Depositor, the Master Servicer, the Trustee,
      the
      Securities Administrator or the 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
      Servicer 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; 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.

     

    
      
        
        

      

      
        A-3-7

        
          

        

      

      
        
        

      

    

     

    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.

     

    
      
        
        

      

      
        A-3-8

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the Securities Administrator has caused this Certificate to
      be
      duly executed.

     

    Dated:

    
      	 	 	 
	 	WELLS
              FARGO BANK,
              N.A.
	 	
              as
                Securities Administrator

            
	 
 	 
 	 
 
	 	By:  	 
	 	
              

              Authorized
                Officer

            

    

    

    

    CERTIFICATE
      OF AUTHENTICATION

     

    This
      is
      one of the Class M-[10][11] Certificates referred to in the within-mentioned
      Agreement.

     

    
      	 	 	 
	 	WELLS
              FARGO BANK,
              N.A.
	 	
              as
                Securities Administrator

            
	 
 	 
 	 
 
	 	By:  	 
	 	
              

              Authorized
                Signatory

            

    

     

    
      
        
        

      

      
        A-3-9

        
          

        

      

      
        
        

      

    

     

    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

            

    

     

    
 

    
      
        
        

      

      
        A-3-10

        
          

        

      

      
        
        

      

    

     

    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.

            	 

    

    

    
      
        
        

      

      
        A-3-11

        
          

        

      

      
        
        

      

    

    EXHIBIT
      A-4

     

    FORM
      OF
      CLASS CE 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 CLASS M
      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 “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.

     

    
      
        
        

      

      
        A-4-1

        
          

        

      

      
        
        

      

    

    

    
      	
              Series
                2006-NC2, Class CE

            	 	
              Aggregate
                Certificate Principal Balance of the Class CE Certificates as of
                the Issue
                Date: $_____________

            
	 	 	 
	
              Pass-Through
                Rate: Variable

            	 	
              Denomination:
                $_________________

            
	 	 	 
	
              Cut-off
                Date and date of Pooling and Servicing Agreement: September 1,
                2006

            	 	
              Master
                Servicer: Wells Fargo Bank, N.A.

            
	 	 	 
	
              First
                Distribution Date: October 25, 2006

            	 	
              Trustee:
                HSBC Bank USA, National Association

            
	 	 	 
	
              No.
                __

            	 	
              Issue
                Date: September 15, 2006

            

    

    

    ACE
      SECURITIES CORP. HOME EQUITY LOAN TRUST, SERIES 2006-NC2

    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 SERVICER, 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 CE Certificates as of the Issue
      Date)
      in that certain beneficial ownership interest evidenced by all of the Class
      CE
      Certificates in REMIC III 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, N.A. as master servicer (the
      “Master Servicer”) and securities administrator (the “Securities
      Administrator”), Countrywide Home Loans Servicing LP as servicer (the
“Servicer”) and HSBC Bank USA, National Association as trustee (the “Trustee”),
      a summary of certain of the pertinent provisions of which is set forth
      hereafter. 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.

     

    
      
        
        

      

      
        A-4-2

        
          

        

      

      
        
        

      

    

     

    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 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 CE 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 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 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 Account 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 Servicer 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 Servicer with the consent of the Swap Provider and 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.

     

    
      
        
        

      

      
        A-4-3

        
          

        

      

      
        
        

      

    

     

    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.

     

    
      
        
        

      

      
        A-4-4

        
          

        

      

      
        
        

      

    

     

    The
      Depositor, the Master Servicer, the Trustee, the Securities Administrator,
      the
      Servicer and any agent of the Depositor, the Master Servicer, the Trustee,
      the
      Securities Administrator or the 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
      Servicer 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; 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.

     

    
      
        
        

      

      
        A-4-5

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the Securities Administrator has caused this Certificate to
      be
      duly executed.

     

    Dated:

    
      	 	 	 
	 	WELLS
              FARGO BANK,
              N.A.
	 	
              as
                Securities Administrator

            
	 
 	 
 	 
 
	 	By:  	 
	 	
              

              Authorized
                Officer

            

    

     

     

    CERTIFICATE
      OF AUTHENTICATION

     

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

     

    
      	 	 	 
	 	WELLS
              FARGO BANK,
              N.A.
	 	
              as
                Securities Administrator

            
	 
 	 
 	 
 
	 	By:  	 
	 	
              

              Authorized
                Officer

            

    

     

    
      
        
        

      

      
        A-4-6

        
          

        

      

      
        
        

      

    

    

    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

            

    

     

    
      
        
        

      

      
        A-4-7

        
          

        

      

      
        
        

      

    

     

    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.

            	 

    

    

    
      
        
        

      

      
        A-4-8

        
          

        

      

      
        
        

      

    

    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 MENDED (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.

     

    
      
        
        

      

      
        A-5-1

        
          

        

      

      
        
        

      

    

    

    
      	
              Series
                2006-NC2, Class P

            	 	
              Aggregate
                Certificate Principal Balance of the Class P Certificates as of the
                Issue
                Date: $100.00

            
	 	 	 
	
              Cut-off
                Date and date of Pooling and Servicing Agreement: September 1,
                2006

            	 	
              Denomination:
                $100.00

            
	 	 	 
	
              First
                Distribution Date: October 25, 2006

            	 	
              Master
                Servicer: Wells Fargo Bank, N.A.

            
	 	 	 
	
              No.
                __

            	 	
              Trustee:
                HSBC Bank USA, National Association

            
	 	 	 
	 	 	
              Issue
                Date: September 15, 2006

            

    

    

    ACE
      SECURITIES CORP. HOME EQUITY LOAN TRUST, SERIES 2006-NC2

    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 SERVICER, 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 III 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, N.A.
      as
      master servicer (the “Master Servicer”) and securities administrator (the
“Securities Administrator”), Countrywide Home Loans Servicing LP as servicer
      (the “Servicer”) and HSBC Bank USA, National Association as trustee (the
“Trustee”), a summary of certain of the pertinent provisions of which is set
      forth hereafter. 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.

     

    
      
        
        

      

      
        A-5-2

        
          

        

      

      
        
        

      

    

     

    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
      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 Account 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 Servicer 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 Servicer with the consent of the Swap Provider and 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.

     

    
      
        
        

      

      
        A-5-3

        
          

        

      

      
        
        

      

    

     

    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.

     

    
      
        
        

      

      
        A-5-4

        
          

        

      

      
        
        

      

    

     

    The
      Depositor, the Master Servicer, the Trustee, the Securities Administrator,
      the
      Servicer and any agent of the Depositor, the Master Servicer, the Trustee,
      the
      Securities Administrator or the 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
      Servicer 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; 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.

     

    
      
        
        

      

      
        A-5-5

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the Securities Administrator has caused this Certificate to
      be
      duly executed.

     

    Dated:

    
      	 	 	 
	 	WELLS
              FARGO BANK,
              N.A.
	 	
              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,
              N.A.
	 	
              as
                Securities Administrator

            
	 
 	 
 	 
 
	 	By:  	 
	 	
              

              Authorized
                Officer

            

    

     

    
      
        
        

      

      
        A-5-6

        
          

        

      

      
        
        

      

    

    

    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

            

    

     

    
      
        
        

      

      
        A-5-7

        
          

        

      

      
        
        

      

    

     

    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.

            	 

    

     

    
      
        
        

      

      
        A-5-8

        
          

        

      

      
        
        

      

    

    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, OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE RESOLD
      OR
      TRANSFERRED UNLESS IT IS REGISTERED PURSUANT TO SUCH ACT AND LAWS OR IS SOLD
      OR
      TRANSFERRED IN TRANSACTIONS THAT ARE EXEMPT FROM REGISTRATION UNDER SUCH ACT
      AND
      UNDER APPLICABLE STATE LAW AND IS TRANSFERRED IN ACCORDANCE WITH THE PROVISIONS
      OF SECTION 6.02 OF THE AGREEMENT.

     

    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.

     

    
      
        
        

      

      
        A-6-1

        
          

        

      

      
        
        

      

    

     

    NO
      PERSON MAY ACQUIRE THIS CERTIFICATE DIRECTLY OR INDIRECTLY BY, ON BEHALF OF,
      OR
      WITH PLAN ASSETS OF AN EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT ARRANGEMENT
      THAT IS SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF
      1974, AS AMENDED, OR SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, UNLESS
      IT HAS PROVIDED THE OPINION OF COUNSEL IN SECTION 6.02(c) OF THE AGREEMENT
      REFERRED TO HEREIN.

     

    
      
        
        

      

      
        A-6-2

        
          

        

      

      
        
        

      

    

    

    
      	
              Series
                2006-NC2, Class R

            	 	
              Aggregate
                Percentage Interest of the Class R Certificates as of the Issue Date:
                100.00%

            
	 	 	 
	
              Date
                of Pooling and Servicing Agreement

              and
                Cut-off Date: September 1, 2006

            	 	
              Master
                Servicer: Wells Fargo Bank, N.A.

            
	 	 	 
	
              First
                Distribution Date: October 25, 2006

            	 	
              Trustee:
                HSBC Bank USA, National Association

            
	 	 	 
	
              No
                __

            	 	
              Issue
                Date: September 15, 2006

            

    

    

    ACE
      SECURITIES CORP. HOME EQUITY LOAN TRUST, SERIES 2006-NC2

    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 SERVICER, 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
      of the Class R Certificates in REMIC III 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, N.A.
      as
      master servicer (the “Master Servicer”) and securities administrator (the
“Securities Administrator”), Countrywide Home Loans Servicing LP as servicer
      (the “Servicer”) and HSBC Bank USA, National Association as trustee (the
“Trustee”), a summary of certain of the pertinent provisions of which is set
      forth hereafter. 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 (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.

     

    
      
        
        

      

      
        A-6-3

        
          

        

      

      
        
        

      

    

     

    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 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 Account 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 Servicer 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 Servicer with the consent of the Swap Provider and 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.

     

    
      
        
        

      

      
        A-6-4

        
          

        

      

      
        
        

      

    

     

    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 Securities Act of 1933, as
      amended (the “1933 Act”), and an effective registration or qualification under
      applicable state securities laws, or is made in a transaction that does not
      require such registration or qualification. In the event that such a transfer
      of
      this Certificate is to be made without registration or qualification, the
      Securities Administrator shall require receipt of (i) if such transfer is
      purportedly being made in reliance upon Rule 144A under the 1933 Act, written
      certifications from the Holder of the Certificate desiring to effect the
      transfer, and from such Holder’s prospective transferee, substantially in the
      forms attached to the Agreement as Exhibit 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, REMIC II and REMIC III, (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.

     

    
      
        
        

      

      
        A-6-5

        
          

        

      

      
        
        

      

    

     

    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
      Servicer and any agent of the Depositor, the Master Servicer, the Trustee,
      the
      Securities Administrator or the 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
      Servicer 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; 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.

     

    
      
        
        

      

      
        A-6-6

        
          

        

      

      
        
        

      

    

     

    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.

     

    
      
        
        

      

      
        A-6-7

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the Securities Administrator has caused this Certificate to
      be
      duly executed.

     

    Dated:

    
      
        	 	 	 
	 	WELLS
                FARGO BANK,
                N.A.
	 	
                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,
                N.A.
	 	
                as
                  Securities Administrator

              
	 
 	 
 	 
 
	 	By:  	 
	 	
                

                Authorized
                  Signatory

              

      

    

     

    
      
        
        

      

      
        A-6-8

        
          

        

      

      
        
        

      

    

     

    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

            

    

     

    
      
        
        

      

      
        A-6-9

        
          

        

      

      
        
        

      

    

     

    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.

            	 

    

     

    
      
        
        

      

      
        A-6-10

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      B-1

    FORM
      OF
      TRANSFEROR REPRESENTATION LETTER

     

    [Date]

     

    Wells
      Fargo Bank, N.A.

    Sixth
      Street and Marquette Avenue

    Minneapolis,
      Minnesota 55479

    Attention:
      Corporate Trust ACE 2006-NC2

     

    
      	 	
              Re:

            	
              ACE
                Securities Corp. Home Equity Loan Trust, Series 2006-NC2 Asset Backed
                Pass-Through Certificates

              [Class
                M-10,] [Class M-11,] [Class CE,] [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 September 1, 2006, among
      ACE Securities Corp. as Depositor, Wells Fargo Bank, N.A. as Master Servicer
      and
      Securities Administrator, Countrywide Home Loans Servicing LP as Servicer and
      HSBC Bank USA, National Association as Trustee (the “Pooling and Servicing
      Agreement”), pursuant to which Pooling and Servicing Agreement the Certificates
      were issued.

     

    
      
        
        

      

      
        B-1-1

        
          

        

      

      
        
        

      

    

    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:

            

    

     

    
      
        
        

      

      
        B-1-2

        
          

        

      

      
        
        

      

    

     

    FORM
      OF
      TRANSFEREE REPRESENTATION LETTER

     

    [Date]

     

    Wells
      Fargo Bank, N.A.

    Sixth
      Street and Marquette Avenue

    Minneapolis,
      Minnesota 55479

    Attention:
      Corporate Trust ACE 2006-NC2

     

    
      	 	
              Re:

            	
              ACE
                Securities Corp. Home Equity Loan Trust, Series 2006-NC2

              Asset
                Backed Pass-Through Certificates 

              [Class
                M-10,] [Class M-11,] [Class CE,] [Class P] and [Class R]
                Certificates

            	 

    

     

    Ladies
      and Gentlemen:

     

    In
      connection with the purchase from ______________________________ (the
“Transferor”) on the date hereof of the captioned asset backed pass-through
      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 Servicer 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 Servicer 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.

     

    
      
        
        

      

      
        B-1-3

        
          

        

      

      
        
        

      

    

    

    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 Servicer 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
      September 1, 2006, among ACE Securities Corp. as Depositor, Wells Fargo Bank,
      N.A. as Master Servicer and Securities Administrator, Countrywide Home Loans
      Servicing LP as Servicer and HSBC Bank USA, National Association as Trustee,
      pursuant to which the Certificates were issued.

     

    
      	 	 	 
	 	
              [TRANSFEREE]

            
	 
 	 
 	 
 
	 	By:  	 
	 	
              

              Name:

            
	 	Title: 

    

     

    
      
        
        

      

      
        B-1-4

        
          

        

      

      
        
        

      

    

    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, N.A., 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.

            

    

     

    ___________________

      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.

       

      
        
          
          

        

        
          B-1-5

          
            

          

        

        
          
          

        

      

    

     

    
      	 	
              ___

            	 	
              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.

            
	 	 	 	 
	 	
              ___

            	 	
              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?

            

    

     

    
      
        
        

      

      
        B-1-6

        
          

        

      

      
        
        

      

       

    

    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:

    

     

    
      
        
        

      

      
        B-1-7

        
          

        

      

      
        
        

      

    

    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, N.A., 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.

     

    
      
        
        

      

      
        B-1-8

        
          

        

      

      
        
        

      

    

     

    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

            

    

     

    
      
        
        

      

      
        B-1-9

        
          

        

      

      
        
        

      

    

    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 

            	 

    

    

    
      
        
        

      

      
        B-1-10

        
          

        

      

      
        
        

      

    

    ANNEX
      A TO EXHIBIT B-1 

     

    FORM
      OF
      REGULATION S TRANSFER CERTIFICATE

     

    [Date]

     

    

     

    Wells
      Fargo Bank, N.A.

    Sixth
      Street and Marquette Avenue

    Minneapolis,
      Minnesota 55479

    Attention:
      Corporate Trust ACE 2006-NC2

     

    
      	 	
              Re:

            	
              ACE
                Securities Corp. Home Equity Loan Trust, Series 2006-NC2 

              Asset
                Backed Pass-Through Certificates, Class M-10, Class M-11, 

              Class
                CE Certificates and/or Class P
                Certificates     

            	 

    

     

    Ladies
      and Gentlemen:

     

    Reference
      is hereby made to the Pooling and Servicing Agreement (the “Agreement”), dated
      as of September 1, 2006, among ACE Securities Corp. (the “Depositor”), Wells
      Fargo Bank, N.A., as master servicer (the “Master Servicer”) and securities
      administrator, Countrywide Home Loans Servicing LP, as servicer (the “Servicer”)
      and HSBC Bank USA, National Association, as trustee (the “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
      [M-10][M-11][CE][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;

     

    
      
        
        

      

      
        B-1-11

        
          

        

      

      
        
        

      

    

     

    (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 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.

     

    
      
        
        

      

      
        B-1-12

        
          

        

      

      
        
        

      

    

    You
      are
      entitled to rely upon this letter and are irrevocably authorized to produce
      this
      letter or a copy hereof to any interested party in any administrative or legal
      proceedings or official inquiry with respect to the matters covered
      hereby.

     

    
      	 	 	 
	 	
              [Name
                of Transferor]

            
	 
 	 
 	 
 
	 	By:  	 
	 	
              

              Name:

            
	 	Title:

    

     

    
      
        
        

      

      
        B-1-13

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      B-2

     

    FORM
      OF
      TRANSFEROR REPRESENTATION LETTER

     

    ____________,
      20__

    

    Wells
      Fargo Bank, N.A.

    Sixth
      Street and Marquette Avenue

    Minneapolis,
      Minnesota 55479

    Attention:
      Corporate Trust ACE 2006-NC2

     

    
      	 	
              Re:

            	
              ACE
                Securities Corp. Home Equity Loan Trust, Series 2006-NC2 

              Asset
                Backed Pass-Through Certificates, 

              [Class
                M-10,] [Class M-11,] [Class CE,] [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 the Pooling and Servicing Agreement,
      dated as of September 1, 2006, among ACE Securities Corp., Wells Fargo Bank,
      N.A., Countrywide Home Loans Servicing LP, and HSBC Bank USA, National
      Association.

     

    
      	 	 	 
	 	
              Very
                truly yours,

            
	 	 
	 	
              (Transferor)

            
	 
 	 
 	 
 
	 	By:  	 
	 	
              

              Name:

            
	 	Title:

    

     

    
      
        
        

      

      
        B-2-1

        
          

        

      

      
        
        

      

    

    FORM
      OF
      TRANSFEREE LETTER

     

    

    _______________,
      20__

     

    Wells
      Fargo Bank, N.A.

    Sixth
      Street and Marquette Avenue

    Minneapolis,
      Minnesota 55479

    Attention:
      Corporate Trust ACE 2006-NC2

     

    
      	 	
              Re:

            	
              ACE
                Securities Corp. Home Equity Loan Trust, Series 2006-NC2 

              Asset
                Backed Pass-Through Certificates, 

              [Class
                M-10,] [Class M-11,] [Class CE,] [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 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) ACE Securities Corp. (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, dated
      as of
      September 1, 2006, among the Depositor, as depositor, Wells Fargo Bank, N.A.,
      as
      master servicer (the “Master Servicer”) and securities administrator,
      Countrywide Home Loans Servicing LP, as servicer (the “Servicer”) and HSBC Bank
      USA, National Association, as trustee (the “Trustee”) 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.

     

    
      
        
        

      

      
        B-2-2

        
          

        

      

      
        
        

      

    

     

    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 1933
      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) (1) for certificates other than the
      Class M-10 Certificates or Class M-11 Certificates, has provided the Securities
      Administrator with an opinion of counsel on which the Depositor, the Master
      Servicer, the Securities Administrator, the Trustee and the Servicer 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 Servicer 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 or (2) for Class M-10
      Certificates and Class M-11 Certificates, represents the requirements of Section
      6.02(c) of the Pooling and Servicing Agreement are met.

     

    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 Servicer 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.

     

    
      	 	 	 
	 	
              Very
                truly yours,

            
	 
 	 
 	 
 
	 	By:  	 
	 	
              

            
	 	
              Name:

            
	 	Title: 

    

     

    
      
        
        

      

      
        B-2-3

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      B-3

     

    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-NC2 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, dated as of September 1, 2006, among ACE Securities
                Corp., Wells Fargo Bank, N.A., Countrywide Home Loans Servicing LP,
                and
                HSBC Bank USA, National Association, 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.

            

    

     

    
      
        
        

      

      
        B-3-1

        
          

        

      

      
        
        

      

    

     

    
      	 	
              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.

            

    

     

    
      
        
        

      

      
        B-3-2

        
          

        

      

      
        
        

      

    

     

    
      	 	
              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 Certificates and Class P
                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
                Certificates and Class P 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.

            

    

     

    
      
        
        

      

      
        B-3-3

        
          

        

      

      
        
        

      

       

    

    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:

            

    

     

    
      
        
        

      

      
        B-3-4

        
          

        

      

      
        
        

      

       

    

    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, dated as of September 1, 2006, among ACE
      Securities Corp., Wells Fargo Bank, N.A., Countrywide Home Loans Servicing
      LP,
      and HSBC Bank USA, National Association.

     

    
      
        
        

      

      
        B-3-5

        
          

        

      

      
        
        

      

    

    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:

            

    

    

    
      
        
        

      

      
        B-3-6

        
          

        

      

      
        
        

      

    

    EXHIBIT
      C

     

    BACK-UP
      CERTIFICATION

     

    Re: __________
      (the “Trust”)

     

    Mortgage
      Pass-Through Certificates, Series 2006-NC2

     

    I,
      [identify the certifying individual], certify to Wells Fargo Bank, National
      Association (the “Master Servicer”) and its respective officers, directors and
      affiliates, and with the knowledge and intent that the Master Servicer will
      rely
      upon this certification, that:

     

     

    (1) 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 by the Servicer to the Master Servicer
      pursuant to the Agreement (collectively, the “Servicer Servicing
      Information”);

     

    (2) 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;

     

    (3) 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 Master
      Servicer;

     

    (4) 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

     

    (5) 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 each Subservicer and Servicing Function
      Participant 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.

     

    
      
        
        

      

      
        C-1

        
          

        

      

      
        
        

      

    

    

    Capitalized
      terms used and not otherwise defined herein have the meanings assigned thereto
      in the Pooling and Servicing Agreement (the “Agreement”), dated as of September
      1, 2006, among ACE Securities Corp. as Depositor, Wells Fargo Bank, N.A. as
      Master Servicer and Securities Administrator, Countrywide Home Loans Servicing
      LP as Servicer and HSBC Bank USA, National Association as Trustee.

     

    

     

    
      	
              Date:

            	 	
            
	 	 	 
	 	 
	
              [Signature]

            	 
	 	 
	
              [Title]

            	 

    

     

    
      
        
        

      

      
        C-2

        
          

        

      

      
        
        

      

    

     

    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 ________________, having its principal place of
      business at ____________________, as Trustee (the “Trustee”) pursuant to that
      Pooling and Servicing Agreement among ___________________ (the “Depositor”),
      Wells Fargo Bank, N.A., as Master Servicer and Securities Administrator,
      Countrywide Home Loans Servicing LP, as servicer, and the Trustee, dated as
      of
      September 1, 2006 (the “Pooling and Servicing Agreement”), hereby constitutes
      and appoints Countrywide Home Loans Servicing LP (the “Servicer”), by and
      through the Servicer’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 the Servicer 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
      the
      Servicer is acting as servicer, all subject to the terms of the Pooling and
      Servicing Agreement 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.

            

    

     

    
      
        
        

      

      
        D-1

        
          

        

      

      
        
        

      

    

     

    
      	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. 

     

    
      
        
        

      

      
        D-2

        
          

        

      

      
        
        

      

    

    

    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, Wells Fargo Bank, National Association,
      Wells Fargo, Countrywide Home Loans Servicing LP and the Trustee, dated as
      of
      ___________ 1, 200__ (_____________ Asset Backed Certificates, Series
      200__-___), 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 _____ Asset 

              Backed
                Certificates, Series 200__-___

            
	 	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 ___________ Asset Backed Certificates,
      Series 200__-___, 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
                _________________

            

    

     

    
      
        
        

      

      
        D-3

        
          

        

      

      
        
        

      

    

    EXHIBIT
      E

    

    SERVICING
      CRITERIA

    

    

    SERVICING
      CRITERIA TO BE ADDRESSED IN ASSESSMENT OF COMPLIANCE

    The
      assessment of compliance to be delivered by [the Servicer][the Master Servicer]
      [Name of Subservicer] shall address, at a minimum, the criteria identified
      as
      below as “Relevant Servicing Criteria”:

    

    
      	
              SERVICING
                CRITERIA 

            	
              RELEVANT
                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

            

    

     

    
      
        
        

      

      
        E-1

        
          

        

      

      
        
        

      

    

     

    
      	 	
              SERVICING
                CRITERIA 

            	
              RELEVANT
                SERVICING CRITERIA 

            
	
              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

            

    

     

     

    
      
        
        

      

      
        E-2

        
          

        

      

      
        
        

      

    

     

    
      	 	
              SERVICING
                CRITERIA 

            	
              RELEVANT
                SERVICING CRITERIA  

            
	
              1122(d)(4)(viii)

            	
              Records
                documenting collection efforts are maintained during the period a
                mortgage
                loan is delinquent in accordance with the transaction agreements.
                Such
                records are maintained on at least a monthly basis, or such other
                period
                specified in the transaction agreements, and describe the entity’s
                activities in monitoring delinquent mortgage loans including, for
                example,
                phone calls, letters and payment rescheduling plans in cases where
                delinquency is deemed temporary (e.g., illness or
                unemployment).

            	
              X

            
	
              1122(d)(4)(ix)

            	
              Adjustments
                to interest rates or rates of return for mortgage loans with variable
                rates are computed based on the related mortgage loan
                documents.

            	
              X

            
	
              1122(d)(4)(x)

            	
              Regarding
                any funds held in trust for an obligor (such as escrow accounts):
                (A) such
                funds are analyzed, in accordance with the obligor’s mortgage loan
                documents, on at least an annual basis, or such other period specified
                in
                the transaction agreements; (B) interest on such funds is paid, or
                credited, to obligors in accordance with applicable mortgage loan
                documents and state laws; and (C) such funds are returned to the
                obligor
                within 30 calendar days of full repayment of the related mortgage
                loans,
                or such other number of days specified in the transaction
                agreements.

            	
              X

            
	
              1122(d)(4)(xi)

            	
              Payments
                made on behalf of an obligor (such as tax or insurance payments)
                are made
                on or before the related penalty or expiration dates, as indicated
                on the
                appropriate bills or notices for such payments, provided that such
                support
                has been received by the servicer at least 30 calendar days prior
                to these
                dates, or such other number of days specified in the transaction
                agreements.

            	
              X

            
	
              1122(d)(4)(xii)

            	
              Any
                late payment penalties in connection with any payment to be made
                on behalf
                of an obligor are paid from the servicer’s funds and not charged to the
                obligor, unless the late payment was due to the obligor’s error or
                omission.

            	
              X

            
	
              1122(d)(4)(xiii)

            	
              Disbursements
                made on behalf of an obligor are posted within two business days
                to the
                obligor’s records maintained by the servicer, or such other number of days
                specified in the transaction agreements.

            	
              X

            
	
              1122(d)(4)(xiv)

            	
              Delinquencies,
                charge-offs and uncollectible accounts are recognized and recorded
                in
                accordance with the transaction agreements.

            	
              X

            
	
              1122(d)(4)(xv)

            	
              Any
                external enhancement or other support, identified in Item 1114(a)(1)
                through (3) or Item 1115 of Regulation AB, is maintained as set forth
                in
                the transaction agreements.

            	 
	
               

            	
               

            	
               

            

    

    

     

    [NAME
      OF
      SERVICER][MASTER SERVICER] [NAME OF SUBSERVICER]

     

    Date: _________________________

     

    

    By:

    Name:
       ________________________________
      

    Title:
       ________________________________

    

    
      
        
        

      

      
        E-3

        
          

        

      

      
        
        

      

    

    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

            

    

     

    __________________

    *
      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.

     

    
      
        
        

      

      
        E-4

        
          

        

      

      
        
        

      

    

     

     

    
      	 	
              Reg.
                AB Item 1122(d) Servicing Criteria

            	
              Depositor 

            	
              Seller

            	 Servicer	
              Trustee

            	
              Custodian

            	
              Paying
                

              Agent 

            	
              Master
                Servicer 

            	
              Securities
                Administrator 

            
	
              (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

            	 	 	 	 	 

    

     

    
      
        
        

      

      
        E-5

        
          

        

      

      
        
        

      

    

     

    
      	 	
              Reg.
                AB Item 1122(d) Servicing Criteria

            	Depositor 	
              Seller 

            	 Servicer	 

              Trustee

            	
              Custodian 

            	 Paying
              
              Agent 

            	Master Servicer 	
              Securities
                Administrator  

            
	
              (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

            	 	 	 	 	 	 	 	
              X

            

    

    

    
      
        
        

      

      
        E-6

        
          

        

      

      
        
        

      

    

    EXHIBIT
      F

    
      

        MORTGAGE
          LOAN PURCHASE AGREEMENT

         

        This
          is a
          Mortgage Loan Purchase Agreement (this “Agreement”), dated September 15, 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) and
          the
          Cap Agreements (as hereinafter defined) 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-NC2, Asset Backed Pass-Through Certificates (the “Certificates”). The
          Certificates will consist of nine 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-NC2, Asset Backed Pass-Through Certificates,
          dated as of September 1, 2006 (the “Pooling and Servicing Agreement”),
          among the Purchaser as depositor, Countrywide Home Loans Servicing LP,
          as
          servicer (the “Servicer”), Wells Fargo Bank, National Association, as master
          servicer (the “Master Servicer”) and securities administrator (the “Securities
          Administrator”)
          and HSBC
          Bank USA, National Association as trustee (the “Trustee”). The Purchaser will
          sell the Class A-1 Certificates and, the Class A-2A, Class A-2B, Class
          A-2C,
          Class A-2D Certificates (collectively, the “Class A-2 Certificates”), the Class
          M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class M-7,
          Class
          M-8, Class M-9, Class M-10 and Class M-11 Certificates (collectively, the
          “Mezzanine Certificates”) to Deutsche Bank Securities Inc. (“DBSI”), pursuant to
          the Second Amended and Restated Underwriting Agreement, dated as of June
          24,
          1999, as amended and restated to and including January 25, 2006, between
          the
          Purchaser and DBSI, and the Terms Agreement, dated September [__], 2006
          (collectively, the “Underwriting Agreement”), between the Purchaser and DBSI.
          The Purchaser will sell the Class M-10 and M-11 Certificates to DBSI pursuant
          to
          the Purchase Agreement, dated as of September [__], 2006, 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 September 15,
          2006
          (the “Closing Date”), (a) certain conventional, one- to four-family, fixed-rate
          and adjustable-rate, residential, first and second lien, residential mortgage
          loans (the “Mortgage Loans”), having an aggregate principal balance as of the
          close of business on September 1, 2006 (the “Cut-off Date”) of approximately
          $[__________] (the “Closing Balance”), after giving effect to all payments due
          on the Mortgage Loans on or before the Cut-off Date, whether or not received,
          including the right to any Prepayment Charges payable by the related Mortgagors
          in connection with any Principal Prepayments on the Mortgage Loans and
          (b) all
          of Seller’s right, title and interest in and to (i) the Cap Agreement, dated as
          of September 15, 2006, between [______________] and the trustee, HSBC Bank
          USA,
          National Association, as trustee for the Supplemental Interest Trust (the
“Group
          I Cap Agreement”), relating to the Class A-1 Certificates and the Mezzanine
          Certificates and (ii) the Cap Agreement,
          dated as of September 15, 2006, between
          [_______________] HSBC Bank USA, National Association, as trustee for the
          Supplemental Interest Trust
          (the “Group II Cap Agreement”; and together with the Group I Cap Agreement, the
“Cap Agreements”), relating to the Class A-2 Certificates and Mezzanine
          Certificates.

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        SECTION
          2. Mortgage
          Loan 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 and the Cap Agreements to be purchased
          hereunder, the Purchaser shall, as described in Section 8, (i) pay to or
          upon
          the order of the Seller in immediately available funds an amount (the “Purchase
          Price”) equal to (i) $________* 
          and (ii)
          a 100% interest in the Class CE, 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 all scheduled payments of principal due after the Cut-off Date,
          all
          other payments of principal due and collected after the Cut-off Date, and
          all
          payments of interest on the Mortgage Loans allocable to the period after
          the
          Cut-off Date. All scheduled payments of principal and interest due on or
          before
          the Cut-off Date and collected after the Cut-off Date shall belong to the
          Seller.

         

        (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 and the Cap Agreements,
          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 related Prepayment Charges and the Cap
          Agreements. 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 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.

         

        * Please
          contact the Mortgage Loan Seller for this information.

         

        
          
            
            

          

          
            -
              2 -

            
              

            

          

          
            
            

          

        

        (b) Delivery
          of Mortgage Loan Documents.
          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:

         

        (i) the
          original Mortgage Note, including any riders thereto, endorsed in blank,
          with
          all prior and intervening endorsements showing a complete chain of endorsement
          from the originator to the Person so endorsing to the Trustee;

         

        (ii) the
          original Mortgage or a certified copy thereof, including any 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 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;

         

        (iii) unless
          such Mortgage Loan is registered on the MERS® System, the original Assignment of
          Mortgage executed in blank;

         

        (iv) the
          original recorded Assignment or Assignments of the Mortgage, or a certified
          copy
          or copies thereof, showing a complete chain of assignment from the originator
          to
          the last Person assigning the Mortgage;

         

        (v) the
          original or copies of each assumption, modification, written assurance
          or
          substitution agreement, if any;

         

        (vi) the
          original lender’s title insurance policy, together with all endorsements or
          riders that were issued with or subsequent to the issuance of such policy,
          insuring the priority of the Mortgage as a first lien or second lien on
          the
          Mortgaged Property represented therein as a fee interest vested in the
          Mortgagor;

         

        (vii) the
          original of any guarantee executed in connection with the Mortgage Note,
          if any;
          and

         

        (viii) the
          original of any security agreement, chattel mortgage or equivalent document
          executed in connection with the Mortgage, if any.

         

        
          
            
            

          

          
            -
              3 -

            
              

            

          

          
            
            

          

        

        Notwithstanding
          anything to the contrary contained in this Section 4, with respect to a
          maximum
          of approximately 1.00% of the Mortgage Loans, by aggregate principal balance
          of
          the Mortgage Loans as of the Cut-off Date, if any original Mortgage Note
          referred to in Section 4(b)(i) above cannot be located, the obligations
          of the
          Seller to deliver such documents 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 (3) Business Days;
          and if
          any document referred to in Section 4(b)(ii) or 4(b)(iv) above has been
          submitted for recording but either (x) has not been returned from the applicable
          public recording office or (y) has been lost or such public recording office
          has
          retained the original of such document, the obligations of the Seller hereunder
          shall be deemed to have been satisfied upon delivery to the Purchaser or
          any
          assignee, transferee or designee of the Purchaser promptly upon receipt
          thereof
          by or on behalf of the Seller of either the original or a copy of such
          document
          certified by the applicable public recording office to be a true and complete
          copy of the original.

         

        In
          the
          event that the original lender’s title insurance policy has not yet been issued,
          the Seller shall deliver to the Purchaser or any assignee, transferee or
          designee of the Purchaser a written commitment or interim binder or preliminary
          report of title issued by the title insurance or escrow company. 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.

         

        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 thirty (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 the Servicer or the Master
          Servicer
          to 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 (7) 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.

         

        
          
            
            

          

          
            -
              4 -

            
              

            

          

          
            
            

          

        

        (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 sixty (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, 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
          bankruptcy, insolvency or reorganization or by general principles of
          equity;

         

        
          
            
            

          

          
            -
              5 -

            
              

            

          

          
            
            

          

        

        (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) Immediately
          prior to the sale of the Mortgage Loans to the Purchaser as herein contemplated,
          the Seller was the owner of the related Mortgage and the indebtedness evidenced
          by the related Mortgage Note, and, upon the payment to the Seller of the
          Purchase Price, in the event that the Seller retains or has retained 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 from and after the date hereof;

         

        (viii) There
          are
          no actions or proceedings against, or investigations known to it of, the
          Seller
          before any court, administrative 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 validity or
          enforceability of, this Agreement;

         

        
          
            
            

          

          
            -
              6 -

            
              

            

          

          
            
            

          

        

        (ix) 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;

         

        (x) 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);

         

        (xi) 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

         

        (xii) The
          information set forth in the applicable part of the Closing Schedule relating
          to
          the existence of a Prepayment Charge is complete, true and correct in all
          material respects at the date or dates respecting which such information
          is
          furnished and each Prepayment Charge 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; (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:

         

        (i) Information
          provided to the Rating Agencies, including the loan level detail, is true
          and
          correct according to the Rating Agency requirements;

         

        (ii) No
          error,
          omission, misrepresentation, negligence, fraud or similar occurrence with
          respect to a Mortgage Loan has taken place on the part of any person, including
          without limitation the Mortgagor, any appraiser, any builder or developer,
          or
          any other party involved in the origination of the Mortgage Loan or in
          the
          application of any insurance in relation to such Mortgage Loan;

         

        
          
            
            

          

          
            -
              7 -

            
              

            

          

          
            
            

          

        

        (iii) Except
          as
          set forth on the Closing Schedule, all payments required to be made prior
          to the
          Cut-off Date with respect to each Mortgage Loan have been made;

         

        (iv) [Reserved];

         

        (v) 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) The
          Mortgage has not been satisfied, cancelled, subordinated (other
          than with respect to second lien Mortgage Loans, the subordination to the
          related 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;

         

        
          
            
            

          

          
            -
              8 -

            
              

            

          

          
            
            

          

        

        (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), 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 issued by a title insurer qualified to do
          business in the jurisdiction where the Mortgaged Property is located. 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) There
          is
          no material default, breach, violation event 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) 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) Except
          with respect to approximately [____]% of the Mortgage Loans by aggregate
          principal balance as of the Cut-off Date, which are balloon mortgage loans
          and
          approximately [____]% of the Mortgage Loans by aggregate principal balance
          as of
          the Cut-off Date, which are interest only mortgage loans, each Mortgage
          Note is
          payable on the first day of each month in equal monthly installments of
          principal and interest (subject to adjustment in the case of the adjustable
          rate
          Mortgage Loans), with interest calculated on a 30/360 basis and payable
          in
          arrears, 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
          years and no Mortgage Loan permits negative amortization;

         

        
          
            
            

          

          
            -
              9 -

            
              

            

          

          
            
            

          

        

        (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 subprime 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 Seller, to the best of the Seller’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) 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) The
          Mortgage Loans were underwritten in accordance with the originator’s
          underwriting guidelines in effect at the time the Mortgage Loans were originated
          (the “Applicable Underwriting Guidelines”), except with respect to certain of
          those Mortgage Loans which had compensating factors permitting a deviation
          from
          the Applicable Underwriting Guidelines;

         

        (xxiv) The
          Mortgaged Property is free of material damage and waste, excepting therefrom
          any
          Mortgage Loan subject to an escrow withhold as shown on the Closing
          Schedule;

         

        (xxv) 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 subprime 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;

         

        
          
            
            

          

          
            -
              10 -

            
              

            

          

          
            
            

          

        

        (xxvi) 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;

         

        (xxvii) 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;

         

        (xxviii) No
          Mortgagor has notified the Seller of any relief requested or allowed under
          the
          Servicemembers Civil Relief Act;

         

        (xxix) 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;

         

        (xxx) 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;

         

        (xxxi) Except
          as
          may otherwise be limited by applicable law, the Mortgage contains a 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;

         

        (xxxii) 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;

         

        (xxxiii) 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;

         

        
          
            
            

          

          
            -
              11 -

            
              

            

          

          
            
            

          

        

        (xxxiv) 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);

         

        (xxxv) Each
          Mortgage Loan (a) is directly secured by a first or second lien on, and
          consists
          of 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, or an individual unit in a planned unit development
          (“PUD”). Any unit in a PUD or condominium project conforms to the requirements
          of the Applicable Underwriting Guidelines regarding such dwellings. No
          residence
          or dwelling is a mobile home or a manufactured dwelling unless it 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;

         

        (xxxvi) 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;

         

        (xxxvii) No
          Mortgage Loan contains a provision whereby the Mortgagor can convert an
          Adjustable Rate Mortgage Loan into a Fixed Rate Mortgage Loan;

         

        (xxxviii) With
          respect to any Group I Mortgage Loan that contains a provision permitting
          imposition of a premium upon a prepayment prior to maturity: (i) prior
          to such
          Group I Mortgage Loan’s origination, the borrower agreed to such premium in
          exchange for a monetary benefit, including but not limited to a rate or
          fee
          reduction, (ii) prior to such Group I Mortgage Loan’s origination, the borrower
          was offered the option of obtaining a mortgage loan that did not require
          payment
          of such a premium, (iii) the prepayment premium is adequately disclosed
          to the
          borrower pursuant to applicable state and federal law, (iv) the duration
          of the
          prepayment period shall not exceed three (3) years from the date of the
          Mortgage
          Note, and (v) notwithstanding any state or federal law to the contrary,
          the
          Servicer shall not impose such prepayment premium in any instance when
          the
          mortgage debt is accelerated as the result of the borrower’s default in making
          the loan payments;

         

        (xxxix) No
          Mortgage Loan is subject to the Home Ownership and Equity Protection Act
          of 1994
          (“HOEPA”) 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) “high risk home” 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);

         

        (xl) 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 Certificates that
          was
          originated on or after March 7, 2003, which is a “high cost home loan” as
          defined under the Georgia Fair Lending Act

         

        
          
            
            

          

          
            -
              12 -

            
              

            

          

          
            
            

          

        

        (xli) No
          Mortgage Loan is a “High-Cost Home Loan” as defined in the Indiana Home Loan
          Practices Act, effective January 1, 2005 (Ind. Code Ann. Sections 24-9-1
          through
          24-9-9);

         

        (xlii) 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;

         

        (xliii) 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;

         

        (xliv) 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.);
          

         

        (xlv) 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.);

         

        (xlvi) 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.);

         

        (xlvii) No
          Mortgage Loan originated in the City of Los Angeles is subject to the City
          of
          Los Angeles California Ordinance 175008 as a home loan;

         

        (xlviii) No
          Mortgage Loan is a “High Cost Home Loan” as defined under the Maine House Bill
          383 L.D. 494, effective as of September 13, 2003;

         

        (xlix) No
          Mortgage Loan is a “High Cost” loan as defined under the New York Banking Law
          Section 6L, effective as of April 1, 2003;

         

        (l) No
          Mortgage Loan is a “home loan” in the state of Nevada; 

         

        (li) No
          Mortgage Loan is a “Section 10 mortgage loan” as defined in Oklahoma House Bill
          1574;

         

        (lii) With
          respect to any Group I Mortgage Loan originated on or after August 1, 2004,
          neither the related Mortgage nor the related Mortgage Note requires the
          borrower
          to submit to arbitration to resolve any dispute arising out of or relating
          in
          any way to the Mortgage Loan transaction;

         

        (liii) 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 5.7, Appendix E (attached hereto as Exhibit 2)) and
          no
          Mortgage Loan originated on or after October 1, 2002 through March 6, 2003
          is
          governed by the Georgia Fair Lending Act;

         

        
          
            
            

          

          
            -
              13 -

            
              

            

          

          
            
            

          

        

        (liv) No
          Mortgage Loan is a “High-Cost Home Mortgage Loan” as defined in the
          Massachusetts Predatory Home Loan Practices Act, effective November 7,
          2004
          (Mass. Ann. Laws Ch. 183C);

         

        (lv) With
          respect to any Mortgage Loan that is secured by a second lien on the related
          Mortgaged Property, either (i) no consent for the Mortgage Loan is required
          by
          the holder of any related senior lien or (ii) such consent has been obtained
          and
          is contained in the Mortgage File;

         

        (lvi) 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;

         

        (lvii) No
          selection procedures were used by the Seller that identified the Mortgage
          Loans
          as being less desirable or valuable than other comparable mortgage loans
          in the
          Seller’s portfolio;

         

        (lviii) The
          information set forth in the Closing Schedule is true and correct in all
          material respects as of the Cut-off Date; 

         

        (lix) No
          Mortgage Loan is secured in whole or in part by the interest of the Mortgagor
          as
          a lessee under a ground lease of the related Mortgaged Property;

         

        (lx) Each
          Group I Mortgage Loan is in compliance with the anti-predatory lending
          eligibility for purchase requirements of Fannie Mae’s Selling
          Guide;

         

        (lxi) No
          Group
          I Mortgage Loan has an “annual percentage rate” or “total points and fees”
payable by the borrower (as each such term is defined under HOEPA) that
          equal or
          exceed the applicable thresholds defined under HOEPA (Section 32 of Regulation
          Z, 12 C.F.R. Section 226.32(a)(1)(i) and (ii));

         

        (lxii) No
          Group
          I Mortgage Loan is a balloon mortgage loan that has an original stated
          maturity
          of less than seven (7) years;

         

        (lxiii) With
          respect to each Group I Mortgage Loan, no borrower was encouraged or required
          to
          select a mortgage loan product offered by such
          Group I
          Mortgage
          Loan’s originator which is a higher cost product designed for less creditworthy
          borrowers, unless at the time of such Group I Mortgage Loan’s origination, such
          borrower did not qualify taking into account credit history and debt to
          income
          ratios for a lower cost credit product then offered by such Group I Mortgage
          Loan’s originator or any affiliate of such Group I Mortgage Loan’s originator.
          If, at the time of loan application, the borrower may have qualified for
          a lower
          cost credit product then offered by any mortgage lending affiliate of such
          Group
          I Mortgage Loan’s originator, such Group I Mortgage Loan’s originator referred
          the borrower’s application to such affiliate for underwriting
          consideration;

         

        
          
            
            

          

          
            -
              14 -

            
              

            

          

          
            
            

          

        

        (lxiv) With
          respect to each Group I Mortgage Loan, the methodology used in underwriting
          the
          extension of credit for each Group I Mortgage Loan employs objective
          mathematical principles which relate the borrower’s income, assets and
          liabilities to the proposed payment and such underwriting methodology does
          not
          rely on the extent of the borrower’s equity in the collateral as the principal
          determining factor in approving such credit extension. Such underwriting
          methodology confirmed that at the time of origination (application/approval)
          the
          borrower had a reasonable ability to make timely payments on such Group
          I
          Mortgage Loan;

         

        (lxv) With
          respect to each Group I Mortgage Loan, no borrower was required to purchase
          any
          single premium credit insurance policy (e.g., life, mortgage, disability,
          accident, unemployment, or health insurance product) or debt cancellation
          agreement as a condition of obtaining the extension of credit. No borrower
          obtained a prepaid single premium credit insurance policy (e.g., life,
          mortgage,
          disability, accident, unemployment, or health insurance product) or debt
          cancellation agreement in connection with the origination of such Group
          I
          Mortgage Loan; No proceeds from any Group I Mortgage Loan were used to
          purchase
          single premium credit insurance policies (e.g., life, mortgage, disability,
          accident, unemployment, or health insurance product) or debt cancellation
          agreements as part of the origination of, or as a condition to closing,
          such
          Mortgage Loan;

         

        (lxvi) With
          respect to each Group I Mortgage Loan, all points and fees related to such
          Group
          I Mortgage Loan were disclosed in writing to the borrower in accordance
          with
          applicable state and federal law and regulation. No borrower was charged
“points
          and fees” (whether or not financed) in an amount that exceeds the greater of (1)
          5% of the principal amount of the Group I Mortgage Loan (such 5% limitation
          is
          calculated in accordance with Fannie Mae’s requirements as set forth in the
          Fannie Mae Selling Guide or (2) $1,000;

         

        (lxvii) All
          fees
          and charges (including finance charges) and whether or not financed, assessed,
          collected or to be collected in connection with the origination and servicing
          of
          each Group I Mortgage Loan has been disclosed in writing to the borrower
          in
          accordance with applicable state and federal law and regulation;
          and

         

        (lxviii) With
          respect to each Group I Mortgage Loan, the Servicer will transmit full-file
          credit reporting data for each Group I Mortgage Loan pursuant to Fannie
          Mae
          Guide Announcement 95-19 and that for each Mortgage Loan, Servicer agrees
          it
          shall report one of the following statuses each month as follows: new
          origination, current, delinquent (30-, 60-, 90-days, etc.), foreclosed,
          or
          charged-off.

         

        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.

         

        
          
            
            

          

          
            -
              15 -

            
              

            

          

          
            
            

          

        

        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 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 sixty (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
          ninety
          (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(xii) 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 Servicer for deposit in the
          Collection Account, 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 the Servicer for deposit into the Collection
          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 5(xii) or Section 6.

         

        
          
            
            

          

          
            -
              16 -

            
              

            

          

          
            
            

          

        

        SECTION
          8. Closing;
          Payment for the Mortgage Loans. The
          closing of the purchase and sale of the Mortgage Loans and the Cap Agreements,
          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.

         

        
          
            
            

          

          
            -
              17 -

            
              

            

          

          
            
            

          

        

        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 the 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 Securities and Exchange 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.  The
          Mortgage Loans will be master serviced by the Master Servicer under the
          Pooling
          and Servicing Agreement and serviced by the Servicer under the Pooling
          and
          Servicing Agreement, on behalf of the Trust, and the Seller has represented
          to
          the Purchaser that such 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.  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 Servicer.  For so long as
          the Master Servicer master services the Mortgage Loans and the Servicer
          services
          the Mortgage Loans, the Master Servicer shall be entitled to the Master
          Servicing Fee and the Servicer shall be entitled to its Servicing Fee and
          such
          other payments as provided for under the terms of the Pooling and Servicing
          Agreement.

         

        SECTION
          12. Mandatory
          Delivery; Grant of Security Interest.  The
          sale and delivery on the Closing Date of the Mortgage Loans 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.

         

        
          
            
            

          

          
            -
              18 -

            
              

            

          

          
            
            

          

        

        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: Doris Hearn, 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.

         

        
          
            
            

          

          
            -
              19 -

            
              

            

          

          
            
            

          

        

        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
          and the Cap Agreements by the Seller to the Purchaser as provided in Section
          4
          hereof be, and be construed as, a sale of the Mortgage Loans and the Cap
          Agreements by the Seller to the Purchaser and not as a pledge of the Mortgage
          Loans and the Cap Agreements 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 and the Cap Agreements
          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 and
          the
          Cap Agreements 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 the Cap Agreements and all amounts payable to the holders of
          the
          Mortgage Loans and the Cap Agreements 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 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
          and
          the Cap Agreements, 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.

         

        
          
            
            

          

          
            -
              20 -

            
              

            

          

          
            
            

          

        

        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.

         

        
          
            
            

          

          
            -
              21 -

            
              

            

          

          
            
            

          

        

        

         

        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

                	
                  Home
                    Loan Protection Act, Ark. 

                  Code
                    Ann. §§ 23-53-101 et
                    seq.

                  Effective
                    July 16, 2003

                	
                  High
                    Cost Home Loan

                
	
                  Cleveland
                    Heights, OH

                	
                  Ordinance
                    No. 72-2003 (PSH), Mun. Code §§ 757.01 et
                    seq.

                  Effective
                    June 2, 2003

                	
                  Covered
                    Loan

                
	
                  Colorado

                	
                  Consumer
                    Equity Protection, Colo. Stat. Ann. §§ 5-3.5-101 et
                    seq.

                  Effective
                    for covered loans offered or entered into on or after January
                    1, 2003.
                    Other provisions of the Act took effect on June 7, 2002

                	
                  Covered
                    Loan

                
	
                  Connecticut

                	
                  Connecticut
                    Abusive Home Loan Lending Practices Act, Conn. Gen. Stat. §§36a-746
                    et
                    seq.

                  Effective
                    October 1, 2001

                	
                  High
                    Cost Home Loan

                
	
                  District
                    of Columbia

                	
                  Home
                    Loan Protection Act, D.C. Code §§ 26-1151.01 et
                    seq.
                    

                  Effective
                    for loans closed on or after January 28, 2003

                	
                  Covered
                    Loan

                
	
                  Florida

                	
                  Fair
                    Lending Act, Fla. Stat. Ann. §§ 494.0078 et
                    seq.
                    

                  Effective
                    October 2, 2002

                	
                  High
                    Cost Home Loan 

                

        

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

           

        

        
          	
                  State/Jurisdiction

                	
                  Name
                    of Anti-Predatory Lending Law/Effective Date

                	
                  Category
                    under Applicable Anti-Predatory Lending
                    Law

                

        

        
          	
                  Georgia
                    (Oct. 1, 2002 - Mar. 6, 2003)

                	
                  Fair
                    Lending Act, Ga. Code Ann. §§ 7-6A-1 et
                    seq.

                  Effective
                    October 1, 2002 - March 6, 2003

                	
                  High
                    Cost Home Loan

                
	
                  Georgia
                    as amended (Mar. 7, 2003 - current)

                	
                  Georgia
                    Fair Lending Act, Ga. Code Ann. §§ 7-6A-1 et
                    seq.

                  Effective
                    for loans closed on or after March 7, 2003

                	
                  High
                    Cost Home Loan

                
	
                  HOEPA
                    Section 32

                	
                  Home
                    Ownership and Equity Protection Act of 1994, 15 U.S.C. § 1639, 12 C.F.R.
                    §§ 226.32 and 226.34

                  Effective
                    October 1, 1995, amendments October 1, 2002

                	
                  High
                    Cost Loan

                
	
                  Illinois

                	
                  High
                    Risk Home Loan Act, Ill. Comp. Stat. tit. 815, §§ 137/5 et
                    seq.

                  Effective
                    January 1, 2004 (prior to this date, regulations under Residential
                    Mortgage License Act effective from May 14, 2001)

                	
                  High
                    Risk Home Loan

                
	
                  Kansas

                	
                  Consumer
                    Credit Code, Kan. Stat. Ann. §§ 16a-1-101 et
                    seq.

                  Section
                    16a-1-301 and 16a-3-207 became effective April 14, 1999; Section
                    16a-3-308a became effective July 1, 1999

                	
                  High
                    Loan to Value Consumer Loan (id. § 16a-3-207) and;

                
	
                  High
                    APR Consumer Loan (id. §16a-3-308a)

                
	
                  Kentucky

                	
                  2003
                    KY H.B. 287 - High Cost Home Loan Act, Ky. Rev. Stat §§360.100
                    et
                    seq.

                  Effective
                    June 24, 2003

                	
                  High
                    Cost Home Loan

                
	
                  Maine

                	
                  Truth
                    in Lending, Me. Rev. Stat. tit. 9-A, §§ 8-101 et
                    seq.

                  Effective
                    September 29, 1995 and as amended from time to time

                	
                  High
                    Rate High Fee Mortgage

                

        

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        
          	
                  State/Jurisdiction

                	
                  Name
                    of Anti-Predatory Lending Law/Effective Date

                	
                  Category
                    under Applicable Anti-Predatory Lending
                    Law

                

        

        
          	
                  Massachusetts

                	
                  Part
                    40 and Part 32, 209 C.M.R. §§ 32.00 et
                    seq.
                    and 209 C.M.R. §§ 40.01 et
                    seq.

                  Effective
                    March 22, 2001 and amended from time to time

                	
                  High
                    Cost Home Loan

                
	
                  Nevada

                	
                  Assembly
                    Bill No. 284, Nev. Rev. Stat §§ 598D.010 et
                    seq.

                  Effective
                    October 1, 2003

                	
                  Home
                    Loan

                
	
                  New
                    Jersey

                	
                  New
                    Jersey Home Ownership Security Act of 2002, N.J. Rev. Stat. §§ 46:10B-22
                    et
                    seq.

                  Effective
                    for loans closed on or after November 27, 2003

                	
                  High
                    Cost Home Loan

                
	
                  New
                    Mexico

                	
                  Home
                    Loan Protection Act, N.M. Rev. Stat. §§ 58-21A-1 et
                    seq.

                  Effective
                    as of January 1, 2004; Revised as of February 26, 2004

                	
                  High
                    Cost Home Loan

                
	
                  New
                    York

                	
                  N.Y.
                    Banking Law Article 6-1

                  Effective
                    for applications made on or after April 1, 2003

                	
                  High
                    Cost Home Loan

                
	
                  North
                    Carolina

                	
                  Restrictions
                    and Limitations on High Cost Home Loans, N.C. Gen. Stat. §§ 24-1.1E
                    et
                    seq.

                  Effective
                    July 1, 2000; amended October 1, 2003 (adding open-end lines
                    of
                    credit)

                	
                  High
                    Cost Home Loan

                
	
                  Ohio

                	
                  H.B.
                    386 (codified in various sections of the Ohio Code), Ohio Rev.
                    Code Ann.
                    §§ 1349.25 et
                    seq.

                  Effective
                    May 24, 2002

                	
                  Covered
                    Loan

                
	
                  Oklahoma

                	
                  Consumer
                    Credit Code (codified in various sections of Title 14A)

                  Effective
                    July 1, 2000; amended effective January 1, 2004

                	
                  Subsection
                    10 Mortgage

                

        

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        
          	
                  State/Jurisdiction

                	
                  Name
                    of Anti-Predatory Lending Law/Effective Date

                	
                  Category
                    under Applicable Anti-Predatory Lending
                    Law

                

        

        
          	
                  South
                    Carolina

                	
                  South
                    Carolina High Cost and Consumer Home Loans Act, S.C. Code Ann.
§§ 37-23-10
                    et
                    seq.

                  Effective
                    for loans taken on or after January 1, 2004

                	
                  High
                    Cost Home Loan

                
	
                  West
                    Virginia

                	
                  West
                    Virginia Residential Mortgage Lender, Broker and Servicer Act,
                    W. Va. Code
                    Ann. §§ 31-17-1 et
                    seq.

                  Effective
                    June 5, 2002

                	
                  West
                    Virginia Mortgage Loan Act Loan

                

        

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        Standard
          & Poor’s Covered Loan Categorization 

         

        

        
          	
                  State/Jurisdiction

                	
                  Name
                    of Anti-Predatory Lending Law/Effective Date

                	
                  Category
                    under Applicable Anti-Predatory Lending Law

                
	
                  Georgia
                    (Oct. 1, 2002 - Mar. 6, 2003)

                	
                  Georgia
                    Fain 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
                    Fain 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

                

        

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        
          	
                  State/Jurisdiction

                	
                  Name
                    of Anti-Predatory Lending Law/Effective Date

                	
                  Category
                    under Applicable Anti-Predatory Lending
                    Law

                

        

        
          	
                  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

                

        

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

      

    

    

     

    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

                	
                  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)

                	
                   

                	
                   

                	
                   

                	
                   

                

        

      

    

     

     

    
      
        
          
          

        

        
          G-1

          
            

          

        

        
          
          

        

      

    

    

    

    
      	
              Form

            	
              Item

            	
              Description

            	
              Master
                Servicer

            	
              Securities
                Administrator

            	
              Custodian

            	
              Trustee

            	
              Depositor

            	
              Sponsor

            
	 	 	
              (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)

            	 	 	 	 

    

    

    
      
        
          
          

        

        
          G-2

          
            

          

        

        
          
          

        

      

    

    

    

    
      	
              Form

            	
              Item

            	
              Description

            	
              Master
                Servicer

            	
              Securities
                Administrator

            	
              Custodian

            	
              Trustee

            	
              Depositor

            	
              Sponsor

            
	 	 	
              (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

               

              (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

            	 	 	 	 	 

    

    

    
      
        
          
          

        

        
          G-3

          
            

          

        

        
          
          

        

      

    

    

    

    

      
        	
                Form

              	
                Item

              	
                Description

              	
                Master
                  Servicer

              	
                Securities
                  Administrator

              	
                Custodian

              	
                Trustee

              	
                Depositor

              	
                Sponsor

              
	
                 

              	
                 

              	
                (10)
                  Information on the amoacunt, 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

                 

                (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

                 

                (monthly
                  Statement)

              	
                 

              	
                 

              	
                 

              	
                 

              
	
                (12)
                  Material breaches of pool asset representations or warranties or
                  transaction covenants.

              	
                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

              	
                 

              	
                 

              	
                 

              	
                 

              

      

    

    

    
      
        
          
          

        

        
          G-4

          
            

          

        

        
          
          

        

      

    

     

    

      
        	
                Form

              	
                Item

              	
                Description

              	
                Master
                  Servicer

              	
                Securities
                  Administrator

              	
                Custodian

              	
                Trustee

              	
                Depositor

              	
                Sponsor

              
	 	 	
                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

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              
	
                Securities
                  Administrator

              	
                 

              	
                X

              	
                 

              	
                 

              	
                 

              	
                 

              
	
                Originator
                  of 20% or more of pool assets as of the Cut-off Date

              	
                 

              	
                 

              	
                 

              	
                 

              	
                X

              	
                 

              
	
                Custodian

              	
                 

              	
                 

              	
                X

              	
                 

              	
                 

              	
                 

              

      

    

    
      

       

      
        
          
          

        

        
          G-5

          
            

          

        

        
          
          

        

      

    

    

    
      	
              Form

            	
              Item

            	
              Description

            	
              Master
                Servicer

            	
              Securities
                Administrator

            	
              Custodian

            	
              Trustee

            	
              Depositor

            	
              Sponsor

            
	 	
              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

            	 	 

    

    

    
      
        
          
          

        

        
          G-6

          
            

          

        

        
          
          

        

      

    

    

    

    
      	
              Form

            	
              Item

            	
              Description

            	
              Master
                Servicer

            	
              Securities
                Administrator

            	
              Custodian

            	
              Trustee

            	
              Depositor

            	
              Sponsor

            
	 	
              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

            	 	 	 	 	 	 

    

    

    

    
      
        
          
          

        

        
          G-7

          
            

          

        

        
          
          

        

      

    

    

    

    

    
      	
              Form

            	
              Item

            	
              Description

            	
              Master
                Servicer

            	
              Securities
                Administrator

            	
              Custodian

            	
              Trustee

            	
              Depositor

            	
              Sponsor

            
	 	 	 	 	 	 	 	 	 
	 	
              9

            	
              Exhibits

            	 	 	 	 	 	 
	
              8-K

            	 	
              Distribution
                report

            	 	
              X

            	 	 	 	 
	 	 	
              Exhibits
                required by Item 601 of Regulation S-K, such as material
                agreements

            	 	 	 	 	
              X

            	 
	 	
              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
                (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
                (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)

            

    

    

    
      
        
          
          

        

        
          G-8

          
            

          

        

        
          
          

        

      

    

    

    

    
      	
              Form

            	
              Item

            	
              Description

            	
              Master
                Servicer

            	
              Securities
                Administrator

            	
              Custodian

            	
              Trustee

            	
              Depositor

            	
              Sponsor

            
	 	 	
              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

            
	
              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

            	 	 	 	 

    

    

    
      
        
          
          

        

        
          G-9

          
            

          

        

        
          
          

        

      

    

    

    

    
      	
              Form

            	
              Item

            	
              Description

            	
              Master
                Servicer

            	
              Securities
                Administrator

            	
              Custodian

            	
              Trustee

            	
              Depositor

            	
              Sponsor

            
	 	
              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

            	 
	 	
              Reg
                AB disclosure about any new servicer (from entity appointing new
                servicer)
                or trustee (from Depositor) is also required.

            	 	 	 	
              X

            	
              X

            	 

    

    

    
      
        
          
          

        

        
          G-10

          
            

          

        

        
          
          

        

      

    

    

    

    
      	
              Form

            	
              Item

            	
              Description

            	
              Master
                Servicer

            	
              Securities
                Administrator

            	
              Custodian

            	
              Trustee

            	
              Depositor

            	
              Sponsor

            
	 	
              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

            

    

    

    
      
        
          
          

        

        
          G-11

          
            

          

        

        
          
          

        

      

    

    

    

    

    

    
      	
              Form

            	
              Item

            	
              Description

            	
              Master
                Servicer

            	
              Securities
                Administrator

            	
              Custodian

            	
              Trustee

            	
              Depositor

            	
              Sponsor

            
	 	
              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.

            	 	 	 	 	 	 
	 	
              9.01

            	
              Financial
                Statements and Exhibits

            	 	 	 	 	 	 
	
              10-K

            	
              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

            	 	 	 	 	 	 
	 	
              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:

            	 	 	 	 	 	 

    

    

    
      
        
          
          

        

        
          G-12

          
            

          

        

        
          
          

        

      

    

    

    

    
      	
              Form

            	
              Item

            	
              Description

            	
              Master
                Servicer

            	
              Securities
                Administrator

            	
              Custodian

            	
              Trustee

            	
              Depositor

            	
              Sponsor

            
	 	 	
              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

            	 	 	 	 	 
	
              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 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

            	 	 	 	 	 
	
              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

            	 	 	 
	
              Item
                1123 - Servicer Compliance Statement

            	
              X

            	 	 	 	 	 

    

     

    
      
        
        

      

      
        G-13

        
          

        

      

      
        
        

      

    

    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, N.A. 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-NC2 - 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: [_________________].

     

    
      
        
        

      

      
        H-1

        
          

        

      

      
        
        

      

    

     

    
      	 	 	 
	 	[NAME
              OF
              PARTY],
	 	as [role]
	 
 	 
 	 
 
	 	By:  	 
	 	
              
Name:
	 	Title:

    

     

    
      
        
        

      

      
        H-2

        
          

        

      

      
        
        

      

    

    EXHIBIT
      I

     

    SWAP
      AGREEMENT

     

    

      
        	
                SWISS
                  RE FINANCIAL PRODUCTS CORPORATION

              
	
                55
                  East 52nd
                  Street

              
	
                New
                  York, New York 10055

              
	
                Fax:
                  (917) 322-7201/Phone: (212)
                  407-7322

              

      

      

      
        	
                To:

              	
                HSBC
                  Bank USA, National Association, not individually, but solely as
                  Supplemental Interest Trust Trustee on behalf of the Supplemental
                  Interest
                  Trust with respect to the ACE Securities Corp. Home Equity Loan
                  Trust,
                  Series 2006-NC2 Asset Backed Pass Through Certificates (“Party
                  B”
                  or “Counterparty”)

              
	 	 
	
                Attn:

              	
                CLTA
                  Structured Finance/ACE Securities Corp., 2006-NC2

              
	 	 
	
                Fax
                  No:

              	
                212-525-1300

              
	 	 
	
                With
                  a Copy To:

              	
                Wells
                  Fargo Bank N.A.

                9062
                  Old Annapolis Road

                Columbia,
                  MD 21045

                ATTN:
                  Client Manager - ACE 2006-NC2

                Facsimile
                  No.: (410) 715-2380

              
	 	 
	
                From:

              	
                SWISS
                  RE FINANCIAL PRODUCTS CORPORATION (“Party A” or
                  “Swiss Re”)

              
	 	 
	
                Date:

              	
                September
                  15, 2006

              
	 	 
	
                Reference:

              	
                1055581

              

      

      

      Swap
        Confirmation

      

      The
        purpose of this facsimile (this "Confirmation") is to confirm the terms and
        conditions of the Transaction entered into between us on the Trade Date
        specified below (the "Transaction"). This Confirmation supersedes any previous
        Confirmation or other communication with respect to the Transaction and
        evidences a complete and binding agreement between us as to the terms of
        the
        Transaction. This Confirmation constitutes a "Confirmation" as referred to
        in
        the ISDA Master Agreement referred to below.

      

      The
        definitions and provisions contained in the 2000 ISDA Definitions (the “2000
        Definitions”), as published by the International Swaps and Derivatives
        Association, Inc. (“ISDA”) are incorporated into this Confirmation. In the event
        of any inconsistency between the 2000 Definitions and this Confirmation,
        this
        Confirmation will govern for the purposes of the Transaction. References
        herein
        to a “Transaction” shall be deemed to be references to a “Swap Transaction” for
        the purposes of the 2000 Definitions. Capitalized terms used in this
        Confirmation and not defined in this Confirmation or the 2000 Definitions
        shall
        have the respective meaning assigned in the Agreement. Each party hereto
        agrees
        to make payment to the other party hereto in accordance with the provisions
        of
        this Confirmation and of the Agreement. In this Confirmation, “Party A” means
        Swiss Re and “Party B” means the Counterparty.

      

      This
        Confirmation supersedes any previous Confirmation or other communication
        with
        respect to the Transaction and evidences a complete and binding agreement
        between you and us as to the terms of the Swap Transaction to which this
        Confirmation relates. This Confirmation is subject to the terms and conditions
        of the ISDA Master Agreement dated as of September 15, 2006, solely with
        respect
        to the Transaction with Reference Number 1055581, between each of Party A
        and
        Party B (the “ISDA Master Agreement”) and shall form a part of and be subject to
        that ISDA Master Agreement. 

      

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

      Each
        party represents to the other party that (absent a written agreement between
        the
        parties that expressly imposes affirmative obligations to the contrary):
        -

      

      
        	
                (a)

              	
                Non-Reliance.
                  It
                  is acting for its own account, and it has made its own independent
                  decisions to enter into the Transaction and as to whether the Transaction
                  is appropriate or proper based upon its own judgement and upon
                  advice from
                  such advisers as it has deemed necessary. It is not relying on
                  any
                  communication (written or oral) of the other party as investment
                  advice or
                  as a recommendation to enter into the Transaction: it being understood
                  that information and explanations related to the terms and conditions
                  of
                  the Transaction shall not be considered investment advice or a
                  recommendation to enter into the Transaction. No communication
                  (written or
                  oral) received from the other party shall be deemed to be an assurance
                  or
                  guarantee as to the expected results of the Transaction.
                  

              
	 	 
	
                (b)

              	
                Assessment
                  and Understanding.
                  It
                  is capable of assessing the merits of and understanding (on its
                  own behalf
                  or through independent professional advice), and understands and
                  accepts,
                  the terms, conditions and risks of the Transaction. It is also
                  capable of
                  assuming, and assumes, the risks of the Transaction. 

              
	 	 
	
                (c)

              	
                Status
                  of Parties.
                  The other party is not acting as a fiduciary for or an adviser
                  to it in
                  respect of the Transaction. 

              

      

      

      The
        terms
        of the particular Transaction to which this Confirmation relates are as
        follows:

      

      
        	 	
                Notional
                  Amount:

              	
                For
                  each Calculation Period, the Notional Amount shall equal the Notional
                  Amount for such Calculation Period as set forth in Schedule A attached
                  hereto.

              
	 	 	 
	 	
                Trade
                  Date:

              	
                August
                  17, 2006

              
	 	 	 
	 	
                Effective
                  Date:

              	
                September
                  15, 2006

              
	 	 	 
	 	
                Termination
                  Date:

              	
                December
                  25, 2011, subject
                  to adjustment in accordance with the Following Business Day Convention;
                  provided, however, that for the purpose of determining the final
                  Fixed
                  Rate Payer Period End Date, Termination Date shall be subject to
                  No
                  Adjustment.

              
	 	 	 
	 	
                Fixed
                  Amounts:

              	 
	 	 	 
	 	
                Fixed
                  Rate Payer:

              	
                Party
                  B

              
	 	 	 
	 	
                Fixed
                  Rate Payer Period

              	 
	 	
                End
                  Dates:

              	
                The
                  25th
                  calendar day of each month during the Term of this Transaction,
                  commencing
                  October 25, 2006, with No Adjustment.

              
	 	 	 
	 	
                Fixed
                  Rate Payer 

              	 
	 	
                Payment
                  Dates:

              	
                Early
                  Payment shall be applicable. For each Calculation Period, the Fixed
                  Rate
                  Payer Payment Date shall be the first Business Day prior to the
                  related
                  Fixed Rate Payer Period End Date.

              

      

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

      
        	 	
                Fixed
                  Rate:

              	
                5.204%

              
	
                 

              	 	 
	 	
                Fixed
                  Rate Day 

              	 
	 	
                Count
                  Fraction:

              	
                30/360

              
	 	
                 

              	 
	 	
                Additional
                  Fixed Payment

              	
                On
                  the Effective Date, Party B will make a payment to Party A of USD
                  $45,000
                  (such payment shall be made by Deutsche Bank Structured Products,
                  Inc on
                  behalf of Party B).

              
	 	 	 
	 	
                Floating
                  Amounts:

              	 
	 	 	 
	 	
                Floating
                  Rate Payer:

              	
                Party
                  A

              
	 	 	 
	 	
                Floating
                  Rate Payer

              	 
	 	
                Period
                  End Dates: 

              	
                The
                  25th
                  calendar day of each month during the Term of this Transaction,
                  commencing
                  October 25, 2006, subject adjustment in accordance with Following
                  Business
                  Day adjustment.

              
	 	 	 
	 	
                Floating
                  Rate Payer 

              	 
	 	
                Payment
                  Dates:

              	
                Early
                  Payment shall be applicable. For each Calculation Period, the Floating
                  Rate Payer Payment Date shall be the first Business Day prior to
                  the
                  related Floating Rate Payer Period End Date.

              
	 	 	 
	 	
                Floating
                  Rate for initial

              	 
	 	
                Calculation
                  Period:

              	
                to
                  be determined

              
	 	
                 

              	 
	 	
                Floating
                  Rate Option:

              	
                USD-LIBOR-BBA

              
	 	 	 
	 	
                Designated
                  Maturity:

              	
                One
                  month

              
	 	 	 
	 	
                Spread:

              	
                None
                  

              
	 	 	 
	 	
                Floating
                  Rate Day

              	 
	 	
                Count
                  Fraction:

              	
                Actual/360

              
	 	 	 
	 	
                Reset
                  Dates:

              	
                The
                  first day of each Calculation Period.

              
	 	 	 
	 	
                Compounding:

              	
                Inapplicable

              
	 	 	 
	 	
                Business
                  Days:

              	
                New
                  York 

              
	 	 	 
	 	
                Calculation
                  Agent:

              	
                Party
                  A

              
	 	 	 
	 	
                Governing
                  Law

              	
                This
                  Transaction and this Confirmation will be governed by and construed
                  in
                  accordance with the laws of the State of New York (without reference
                  to
                  choice of law doctrine except Section 5-1401 and Section 5-1402
                  of the New
                  York General Obligation Law).

              

      

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

      
        	
                3.

              	
                Account
                  Details and Settlement Information:

              	 

      

       

      
        	 	
                Payments
                  to Party A:

              
	 	
                JPMorgan
                  Chase Bank

              
	 	
                SWIFT:
                  CHASUS33

              
	 	
                For
                  the Account of Swiss Re Financial Products Corporation

              
	 	
                Account
                  No.: 066-911184                

              
	 	 
	 	 
	 	
                Payments
                  to Party B:

              
	 	 
	 	
                Wells
                  Fargo Bank, N.A.

              
	 	
                ABA#
                  121000248

              
	 	
                Account
                  Name: SAS Clearing 

              
	 	
                Account#:
                  3970771416

              
	 	
                FFC:
                  50945602 ACE 2006-NC2

              
	 	
                Supplemental
                  Interest Trust Account

              

      

      

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

      Please
        confirm that the foregoing correctly sets forth all the terms and conditions
        of
        our agreement with respect to the Transaction by responding within three
        (3)
        Business Days by promptly signing in the space provided below and both (i)
        faxing the signed copy to Swiss Re Financial (917) 322-7201 and (ii) mailing
        the
        signed copy to Swiss Re Financial Products, 55 East 52nd
        Street,
        New York, New York 10053. Your failure to respond within such period shall
        not
        affect the validity or enforceability of the Transaction as against you.
        This
        facsimile shall be the only documentation in respect of the Transaction and
        accordingly no hard copy versions of this Confirmation for this Transaction
        shall be provided unless the Counterparty requests. 

      

      

      
        	
                For
                  and on behalf of

                SWISS
                  RE FINANCIAL PRODUCTS CORPORATION

              	 	
                For
                  and on behalf of

                HSBC
                  Bank USA, National Association, not individually, but solely as
                  Supplemental Interest Trust Trustee on behalf of the Supplemental
                  Interest
                  Trust with respect to the ACE Securities Corp. Home Equity Loan
                  Trust,
                  Series 2006-NC2 Asset Backed Pass Through
                  Certificates

              
	 	 	 
	 	 	 
	 	 	 
	NAME
                Title

                Date:

              	 	NAME
                Title

                Date:

              

      

      

      

       

      

      

      

      

      (Signature
        Page for Confirmation - Transaction Reference Number 1055581)

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

      Schedule
        A to
        the
        Confirmation dated as of September, 2006

       

      Re:
        Reference Number: 1055581

      *
        All
        dates subject to adjustment in accordance with the Following Business Day
        Convention with respect to each Floating Rate Payer Period End Date and subject
        to No Adjustment with respect to each Fixed Rate Payer Period End
        Date.

      

        
          	
                  Accrue
                    from and including

                	
                  Accrue
                    to but excluding

                	
                  Notional
                    Amount (USD)

                
	
                  Effective
                    Date

                	
                  10/25/2006

                	
                  0

                
	
                  10/25/2006

                	
                  11/25/2006

                	
                  0

                
	
                  11/25/2006

                	
                  12/25/2006

                	
                  0

                
	
                  12/25/2006

                	
                  1/25/2007

                	
                  0

                
	
                  1/25/2007

                	
                  2/25/2007

                	
                  0

                
	
                  2/25/2007

                	
                  3/25/2007

                	
                  0

                
	
                  3/25/2007

                	
                  4/25/2007

                	
                  783,342,714.00

                
	
                  4/25/2007

                	
                  5/25/2007

                	
                  755,994,254.00

                
	
                  5/25/2007

                	
                  6/25/2007

                	
                  726,833,376.00

                
	
                  6/25/2007

                	
                  7/25/2007

                	
                  696,763,252.00

                
	
                  7/25/2007

                	
                  8/25/2007

                	
                  667,941,042.00

                
	
                  8/25/2007

                	
                  9/25/2007

                	
                  640,314,805.00

                
	
                  9/25/2007

                	
                  10/25/2007

                	
                  613,834,771.00

                
	
                  10/25/2007

                	
                  11/25/2007

                	
                  588,453,244.00

                
	
                  11/25/2007

                	
                  12/25/2007

                	
                  564,124,518.00

                
	
                  12/25/2007

                	
                  1/25/2008

                	
                  540,804,795.00

                
	
                  1/25/2008

                	
                  2/25/2008

                	
                  518,452,103.00

                
	
                  2/25/2008

                	
                  3/25/2008

                	
                  497,026,221.00

                
	
                  3/25/2008

                	
                  4/25/2008

                	
                  476,440,904.00

                
	
                  4/25/2008

                	
                  5/25/2008

                	
                  456,700,982.00

                
	
                  5/25/2008

                	
                  6/25/2008

                	
                  429,393,091.00

                
	
                  6/25/2008

                	
                  7/25/2008

                	
                  365,864,061.00

                
	
                  7/25/2008

                	
                  8/25/2008

                	
                  313,084,438.00

                
	
                  8/25/2008

                	
                  9/25/2008

                	
                  269,143,783.00

                
	
                  9/25/2008

                	
                  10/25/2008

                	
                  236,214,786.00

                
	
                  10/25/2008

                	
                  11/25/2008

                	
                  225,646,003.00

                
	
                  11/25/2008

                	
                  12/25/2008

                	
                  215,558,588.00

                
	
                  12/25/2008

                	
                  1/25/2009

                	
                  205,930,700.00

                
	
                  1/25/2009

                	
                  2/25/2009

                	
                  196,750,755.00

                
	
                  2/25/2009

                	
                  3/25/2009

                	
                  187,987,508.00

                
	
                  3/25/2009

                	
                  4/25/2009

                	
                  179,621,745.00

                
	
                  4/25/2009

                	
                  5/25/2009

                	
                  171,635,153.00

                
	
                  5/25/2009

                	
                  6/25/2009

                	
                  164,010,272.00

                
	
                  6/25/2009

                	
                  7/25/2009

                	
                  156,730,592.00

                
	
                  7/25/2009

                	
                  8/25/2009

                	
                  149,781,557.00

                
	
                  8/25/2009

                	
                  9/25/2009

                	
                  143,146,441.00

                
	
                  9/25/2009

                	
                  10/25/2009

                	
                  136,810,829.00

                
	
                  10/25/2009

                	
                  11/25/2009

                	
                  130,760,979.00

                
	
                  11/25/2009

                	
                  12/25/2009

                	
                  124,983,784.00

                
	
                  12/25/2009

                	
                  1/25/2010

                	
                  119,466,794.00

                
	
                  1/25/2010

                	
                  2/25/2010

                	
                  114,198,199.00

                
	
                  2/25/2010

                	
                  3/25/2010

                	
                  109,166,472.00

                
	
                  3/25/2010

                	
                  4/25/2010

                	
                  104,360,780.00

                

        

         

        
          
            
            

          

          
            6

            
              

            

          

          
            
            

          

        

        
          	
                  4/25/2010

                	
                  5/25/2010

                	
                  99,770,793.00

                
	
                  5/25/2010

                	
                  6/25/2010

                	
                  95,386,661.00

                
	
                  6/25/2010

                	
                  7/25/2010

                	
                  91,199,003.00

                
	
                  7/25/2010

                	
                  8/25/2010

                	
                  87,195,191.25

                
	
                  8/25/2010

                	
                  9/25/2010

                	
                  83,367,154.53

                
	
                  9/25/2010

                	
                  10/25/2010

                	
                  79,707,176.00

                
	
                  10/25/2010

                	
                  11/25/2010

                	
                  76,207,877.57

                
	
                  11/25/2010

                	
                  12/25/2010

                	
                  72,862,205.07

                
	
                  12/25/2010

                	
                  1/25/2011

                	
                  69,663,414.04

                
	
                  1/25/2011

                	
                  2/25/2011

                	
                  66,605,056.09

                
	
                  2/25/2011

                	
                  3/25/2011

                	
                  63,680,965.94

                
	
                  3/25/2011

                	
                  4/25/2011

                	
                  60,885,248.97

                
	
                  4/25/2011

                	
                  5/25/2011

                	
                  58,212,269.36

                
	
                  5/25/2011

                	
                  6/25/2011

                	
                  55,656,638.70

                
	
                  6/25/2011

                	
                  7/25/2011

                	
                  53,213,205.14

                
	
                  7/25/2011

                	
                  8/25/2011

                	
                  50,877,043.02

                
	
                  8/25/2011

                	
                  9/25/2011

                	
                  48,643,442.92

                
	
                  9/25/2011

                	
                  10/25/2011

                	
                  46,507,902.15

                
	
                  10/25/2011

                	
                  11/25/2011

                	
                  44,466,115.74

                
	
                  11/25/2011

                	
                  Termination
                    Date

                	
                  42,513,967.68

                

        

      

      

      [Rest
        of
        Page Left Intentionally Blank]

      

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

      
        (Multicurrency—Cross
          Border)

        ISDA®

        International
          Swap and Derivatives Association, Inc.

         

        MASTER
          AGREEMENT

        

        

        dated
          as
          of September 15, 2006

        

        and
          governing solely the Transaction with Reference Number 1055581

        

        
          	
                  SWISS
                    RE FINANCIAL PRODUCTS CORPORATION

                	
                  and

                	
                  HSBC
                    Bank USA, National Association, not individually, but solely
                    as
                    Supplemental Interest Trust Trustee on behalf of the Supplemental
                    Interest
                    Trust with respect to the ACE Securities Corp. Home Equity Loan
                    Trust,
                    Series 2006-NC2 Asset Backed Pass Through
                    Certificates.

                

        

        
          	 	 	 
	
                  ("Party
                    A")

                   

                	 	
                  ("Party
                    B")

                   

                

        

        
          	
                  have
                    entered and/or anticipate entering into one or more transactions
                    (each a
                    “Transaction”) that are or will be governed by this Master
                    Agreement, which includes the schedule (the “Schedule”),
                    and the documents and other confirming evidence (each
                    a “Confirmation”) exchanged between the parties confirming those
                    Transactions. 

                
	
                   

                  Accordingly,
                    the parties agree as follows:—

                
	
                   

                  1. Interpretation

                
	 
	
                  (a) Definitions.
                    The
                    terms defined in Section 14 and in the Schedule will have
                    the meanings therein specified for the purpose of this
                    Master Agreement.

                
	
                   

                  (b) Inconsistency.
                    In
                    the event of any inconsistency between the provisions of
                    the Schedule and the
                    other provisions of this Master Agreement, the Schedule
                    will prevail. In the event of any inconsistency
                    between the provisions of any Confirmation and this Master
                    Agreement (including the Schedule), such
                    Confirmation will prevail for the purpose of
                    the relevant Transaction.

                
	
                   

                  (c) Single
                    Agreement. All
                    Transactions are entered into in reliance on the
                    fact that this Master Agreement and all
                    Confirmations form a single agreement between the parties
                    (collectively referred to as
                    this “Agreement”), and the parties would not otherwise enter
                    into any Transactions.

                
	
                   

                  2. Obligations

                
	
                   

                  (a) General
                    Conditions.

                
	
                   

                  (i) Each
                    party will make each payment or delivery specified in each Confirmation
                    to be made by it, subject to the other provisions
                    of this Agreement.

                
	
                   

                  (ii) Payments
                    under this Agreement will be made on the due date for value on
                    that
                    date in the place
                    of the account specified in the relevant Confirmation or
                    otherwise pursuant to this Agreement, in
                    freely transferable funds and in the manner customary for
                    payments in the required currency. Where
                    settlement is by delivery (that is, other than by payment), such
                    delivery will be made for receipt on the due date in
                    the manner customary for the relevant obligation unless
                    otherwise specified in the
                    relevant Confirmation or elsewhere in this
                    Agreement.

                
	
                   

                  (iii) Each
                    obligation of each party under Section 2(a)(i) is subject to
                    (1)
                    the condition precedent that no Event of Default
                    or Potential Event of Default with respect to the other
                    party has occurred and is continuing, (2) the
                    condition precedent that no Early Termination Date
                    in respect of the relevant Transaction has
                    occurred or been effectively designated and (3)
                    each other applicable condition precedent specified in
                    this Agreement.

                

        

        
 

        Copyright
          © 1992 by International Swap and Derivatives Association, Inc.

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        
          	
                  (b) Change
                    of Account. Either
                    party may change its account for receiving a payment
                    or delivery by giving notice to the other party at
                    least five Local Business Days prior to the scheduled date for
                    the payment or delivery to which such change applies unless
                    such other party gives timely notice of a reasonable objection
                    to such change.

                
	
                   

                  (c) Netting.
                    If
                    on any date amounts would otherwise be payable:—

                
	
                   

                  (i) in
                    the same currency; and

                
	
                   

                  (ii) in
                    respect of the same Transaction,

                
	
                   

                  by
                    each party to the other, then, on such date, each party's obligation
                    to
                    make payment of any such amount will be automatically
                    satisfied and discharged and, if the aggregate amount that would
                    otherwise have been
                    payable by one party exceeds the aggregate amount that would
                    otherwise
                    have been payable by the other party, replaced by an
                    obligation upon the party by whom the larger aggregate amount
                    would have been payable to pay
                    to the other party the excess of the larger aggregate amount
                    over the
                    smaller aggregate amount.

                
	
                   

                  The
                    parties may elect in respect of two or more Transactions that
                    a net amount
                    will be determined in respect of all amounts
                    payable on the same date in the same currency in respect of such
                    Transactions, regardless of
                    whether such amounts are payable in respect of the same
                    Transaction. The election may be made in the
                    Schedule or a Confirmation by specifying that subparagraph (ii)
                    above will not apply to the Transactions identified as being
                    subject to the election, together with the starting date (in
                    which case
                    subparagraph (ii) above will not, or will cease to, apply
                    to such Transactions from such date). This election may be made
                    separately for different groups of Transactions and will apply
                    separately to each pairing of Offices through
                    which the parties make and receive payments or
                    deliveries.

                
	
                   

                  (d) Deduction
                    or Withholding for Tax.

                
	
                   

                  (i) Gross-Up.
                    All
                    payments under this Agreement will be made without
                    any deduction or withholding for or on account of any Tax
                    unless such deduction or withholding is required by any
                    applicable law, as modified by the practice of any relevant
                    governmental revenue
                    authority, then in
                    effect. If a party is so required to deduct or withhold, then
                    that party
                    (“X”) will:—

                
	
                   

                  (1) promptly
                    notify the other party (“Y”) of such requirement;

                
	
                   

                  (2) pay
                    to the relevant authorities the full amount required to be
                    deducted or withheld (including the full amount
                    required to be deducted or withheld from any additional amount
                    paid by X to Y under this Section 2(d)) promptly upon the earlier
                    of
                    determining that such deduction or withholding is
                    required or receiving notice that such amount has been assessed
                    against Y;

                
	
                   

                  (3) promptly
                    forward to Y an official receipt (or a certified copy), or
                    other documentation reasonably acceptable to Y, evidencing such
                    payment to such authorities; and

                
	
                   

                  (4) if
                    such Tax is an Indemnifiable Tax, pay to Y, in addition to the
                    payment
                    to which Y is otherwise entitled under this
                    Agreement, such additional amount as is necessary
                    to ensure that the net amount
                    actually received by Y (free and clear of Indemnifiable Taxes,
                    whether assessed
                    against X or Y) will equal the full amount Y would have received
                    had no such deduction or withholding been required.
                    However, X will not be required to pay any additional amount to
                    Y to the extent that it would not be required to be paid but
                    for:—

                
	
                   

                  (A) the
                    failure by Y to comply with or perform any
                    agreement contained in Section 4(a)(i), 4(a)(iii) or
                    4(d); or

                
	
                   

                  (B) the
                    failure of a representation made by Y pursuant to Section 3(f)
                    to
                    be accurate and true unless such failure would not
                    have occurred but for (I) any action taken by a taxing
                    authority, or brought in a court of competent jurisdiction, on or
                    after the date on which a Transaction is entered into
                    (regardless of whether such action is taken or brought with
                    respect to a party to this Agreement) or (II) a Change in Tax
                    Law.

                

        

         

        
          
            
            

          

          
            2

            
              

            

          

          
            
            

          

        

        
          	
                   

                  (ii) Liability.
                    If:—

                
	
                   

                  (1) X
                    is required by any applicable law, as modified by the practice
                    of
                    any relevant governmental revenue authority, to make any
                    deduction
                    or withholding in respect of which X
                    would not be required to pay an additional amount to Y under
                    Section 2(d)(i)(4);

                
	
                   

                  (2) X
                    does not so deduct or withhold; and

                
	
                   

                  (3) a
                    liability resulting from such Tax is assessed directly against
                    X,

                
	
                   

                  then,
                    except to the extent Y has satisfied or then satisfies the liability
                    resulting from such Tax, Y will promptly pay to X the
                    amount of such liability (including any related liability
                    for interest, but including any related liability for
                    penalties only if Y has failed to comply with or perform any
                    agreement contained in Section 4(a)(i), 4(a)(iii) or
                    4(d)).

                
	
                   

                  (e) Default
                    Interest; Other Amounts. Prior
                    to the occurrence or effective designation of an Early
                    Termination Date in respect of the relevant Transaction, a party that
                    defaults in the performance of any payment obligation
                    will, to the extent permitted by law and subject to
                    Section 6(c), be required to pay interest
                    (before as well
                    as after judgment) on the overdue amount to the other party on
                    demand in
                    the same currency
                    as such overdue amount, for the period from (and including) the
                    original due date for payment to (but excluding) the date
                    of actual payment, at the Default Rate. Such interest will be
                    calculated
                    on the basis of daily compounding
                    and the actual number of days elapsed. If, prior to the occurrence
                    or
                    effective designation
                    of an Early Termination Date in respect of the relevant
                    Transaction, a party defaults in the performance of
                    any obligation required to be settled by delivery, it will
                    compensate
                    the other party on demand
                    if
                    and to the extent provided for in the relevant Confirmation
                    or elsewhere in this Agreement.

                
	
                   

                  3. Representations

                
	
                   

                  Each
                    party represents to the other party (which representations will
                    be
                    deemed to be repeated
                    by each party on each date on which a Transaction is
                    entered into and, in the
                    case of the representations
                    in
                    Section 3(f), at all times until the termination of
                    this Agreement) that:—

                
	
                   

                  (a) Basic
                    Representations.

                
	
                   

                  (i) Status.
                    It
                    is duly organised and validly existing under the laws of the
                    jurisdiction of its organisation or incorporation and, if
                    relevant under such laws, in good standing;

                
	
                   

                  (ii) Powers.
                    It
                    has the power to execute this Agreement and any other
                    documentation relating to this Agreement to which it is a
                    party, to
                    deliver this Agreement and any other
                    documentation relating to this Agreement that it is
                    required by this Agreement to deliver and to perform its obligations
                    under this Agreement and any obligations it has under any Credit
                    Support Document to which it is a party and has taken
                    all necessary action to authorise such execution, delivery and
                    performance;

                
	
                   

                  (iii) No
                    Violation or Conflict.
                    Such
                    execution, delivery and
                    performance do not
                    violate or  conflict with any law applicable to it,
                    any provision of its constitutional documents, any order or judgment
                    of any court or other agency of government applicable to it or
                    any of its assets or any contractual restriction binding on
                    or affecting it or any of its assets;

                
	
                   

                  (iv) Consents.
                    All
                    governmental and other consents that are required to have been
                    obtained by it with respect to this Agreement or any
                    Credit Support Document to which it is a party have been
                    obtained and are in full force and effect and all conditions of any
                    such consents have been complied with; and

                
	
                   

                  (v) Obligations
                    Binding. Its
                    obligations under
                    this Agreement and any
                    Credit Support Document to which it is a party
                    constitute its legal, valid and binding obligations,
                    enforceable in accordance with their respective terms
                    (subject to applicable bankruptcy, reorganisation, insolvency,
                    moratorium or similar laws affecting creditors' rights generally
                    and subject, as to enforceability, to equitable principles of
                    general application (regardless of whether enforcement
                    is sought in a proceeding in equity or at
                    law)).

                

        

         

        
          
            
            

          

          
            3

            
              

            

          

          
            
            

          

        

        
          	
                   

                  (b) Absence
                    of Certain Events. No
                    Event of Default or Potential Event of Default or,
                    to its knowledge, Termination Event
                    with respect to it has occurred
                    and is continuing and
                    no such event
                    or
                    circumstance would occur as a
                    result of its entering into or performing its
                    obligations under this Agreement
                    or
                    any Credit Support Document to which it is a
                    party.

                
	
                   

                  (c) Absence
                    of Litigation.
                    There
                    is not pending or, to its knowledge, threatened against it or
                    any of its Affiliates any action, suit or proceeding
                    at law or in equity or before any court,
                    tribunal, governmental body, agency or official or any
                    arbitrator that is likely to affect the legality, validity or
                    enforceability against it of this Agreement or
                    any Credit Support Document
                    to
                    which it is a party or its ability to perform its obligations
                    under this Agreement or such Credit Support
                    Document.

                
	
                   

                  (d) Accuracy
                    of Specified Information. All
                    applicable information
                    that
                    is
                    furnished in writing by or on behalf of it to the
                    other party and is identified for the purpose of this Section
                    3(d) in the
                    Schedule is, as of the date of the information,
                    true, accurate and complete in every material respect.

                
	
                   

                  (e) Payer
                    Tax Representation. Each
                    representation specified in the Schedule as being made by it for
                    the purpose of this Section 3(e) is accurate and
                    true.

                
	
                   

                  (f) Payee
                    Tax Representations. Each
                    representation specified in the Schedule as being
                    made by it for the purpose of this Section 3(f)
                    is accurate and true.

                
	
                   

                  4. Agreements

                
	
                   

                  Each
                    party agrees with the other that, so long as either party has
                    or may have
                    any obligation under this Agreement or under any
                    Credit Support Document to which it is a party:—

                
	
                   

                  (a) Furnish
                    Specified Information. It
                    will deliver to the other party or, in certain cases under
                    subparagraph (iii) below, to such government or taxing authority
                    as the other party reasonably directs:—

                
	
                   

                  (i) any
                    forms, documents or certificates relating to taxation specified
                    in the
                    Schedule or any Confirmation;

                
	
                   

                  (ii) any
                    other documents specified in the Schedule or any Confirmation;
                    and

                
	
                   

                  (iii) upon
                    reasonable demand by such other party, any form or document that
                    may
                    be required or reasonably requested in writing in order to
                    allow such other party or its Credit Support Provider to
                    make a payment under this Agreement or any applicable Credit
                    Support Document without any deduction or withholding for
                    or on account of any Tax or with such deduction
                    or withholding at a reduced rate (so long as the
                    completion, execution or submission of such form or document would
                    not materially prejudice the legal or commercial position of the
                    party in receipt of such demand), with any such form or
                    document to be accurate and completed in a manner
                    reasonably satisfactory to such other party and to be
                    executed
                    and to be delivered with any
                    reasonably required certification,

                
	
                   

                  in
                    each case by the date specified in the Schedule or such Confirmation
                    or,
                    if none is specified, as soon as
                    reasonably practicable.

                
	
                   

                  (b) Maintain
                    Authorisations. It will
                    use all reasonable efforts to maintain in full force
                    and effect all consents of any governmental or other
                    authority that are required to be obtained by it with
                    respect to this Agreement or any
                    Credit Support Document to which
                    it is a party and will use
                    all reasonable efforts to obtain any that may become
                    necessary in the future.

                
	
                   

                  (c) Comply
                    with Laws. It
                    will comply in all material respects with all applicable laws
                    and orders to which it may
                    be subject if failure
                    so
                    to comply would materially impair its ability to perform
                    its obligations under this Agreement or any Credit Support
                    Document to which it is a party.

                
	
                   

                  (d) Tax
                    Agreement. It
                    will give notice of any failure of a representation made by it
                    under Section 3(f) to be accurate and true promptly
                    upon learning of such failure.

                
	
                   

                  (e) Payment
                    of Stamp Tax. Subject
                    to Section 11, it will pay any Stamp Tax levied or imposed upon
                    it or in respect
                    of its execution or performance
                    of
                    this Agreement by
                    a jurisdiction in which it is incorporated,
                    organised,
                    managed and controlled, or considered to have its seat, or in
                    which a
                    branch or office through which it is
                    acting for the purpose of this Agreement is located
                    (“Stamp Tax Jurisdiction”) and will indemnify the other party
                    against any Stamp Tax levied or imposed upon
                    the other party or in respect of the other party's execution or performance
                    of this Agreement by any such
                    Stamp Tax Jurisdiction which is not also a Stamp
                    Tax Jurisdiction with respect to the other
                    party.

                

        

         

        
          
            
            

          

          
            4

            
              

            

          

          
            
            

          

        

        
          	
                   

                  5. Events
                    of Default and Termination Events

                
	
                   

                  (a) Events
                    of Default. The
                    occurrence at any time with respect to a party or, if
                    applicable, any Credit Support Provider of
                    such party or any Specified
                    Entity of such party of any of the following events constitutes
                    an event of default (an “Event of Default”) with respect to such
                    party:—

                
	
                   

                  (i) Failure
                    to Pay or Deliver. Failure
                    by the party to make, when due, any payment under this
                    Agreement or delivery under Section 2(a)(i) or 2(e) required to
                    be made by it if such failure is not remedied on or before
                    the third Local Business Day after notice of such failure is
                    given to the
                    party;

                
	
                   

                  (ii) Breach
                    of Agreement. Failure
                    by the party to comply with or perform any agreement or
                    obligation (other than an obligation to make any payment under this
                    Agreement or delivery under Section 2(a)(i) or 2(e) or to
                    give notice of a Termination Event or any
                    agreement or obligation under Section 4(a)(i),
                    4(a)(iii) or 4(d)) to be complied with or performed by the
                    party in accordance with this Agreement if such
                    failure is not remedied on or before the thirtieth day
                    after notice of such failure is given to the
                    party;

                
	
                   

                  (iii) Credit
                    Support Default.

                
	
                   

                  (1) Failure
                    by the party or any Credit Support Provider of such party to
                    comply with or perform any agreement or obligation to
                    be complied with or performed by it in accordance
                    with any Credit Support Document if such failure is continuing
                    after any applicable grace
                    period has elapsed;

                
	
                   

                  (2) the
                    expiration or termination
                    of
                    such Credit Support Document or the failing or ceasing
                    of such Credit
                    Support Document to be in full force and
                    effect for the purpose of this Agreement (in either case
                    other than in accordance with its terms)
                    prior to the satisfaction
                    of all obligations of such party
                    under each Transaction to which
                    such Credit Support Document relates without
                    the written consent of the other party; or

                
	
                   

                  (3) the
                    party or such
                    Credit Support
                    Provider disaffirms, disclaims, repudiates or rejects, in
                    whole or in part, or challenges the validity of, such Credit
                    Support Document;

                
	
                   

                  (iv) Misrepresentation.
                    A
                    representation (other than a representation under
                    Section 3(e) or (f))
                    made or repeated
                    or deemed to have been made or repeated by the party or
                    any Credit Support
                    Provider of such
                    party in this Agreement or any Credit Support Document proves
                    to have been
                    incorrect or misleading
                    in any
                    material respect when made or repeated or deemed to
                    have been made
                    or repeated;

                
	
                   

                  (v) Default
                    under Specified Transaction. The
                    party, any Credit Support Provider of such party or
                    any applicable Specified
                    Entity of such party (1) defaults under a Specified
                    Transaction and, after
                    giving effect
                    to any applicable notice requirement or grace period, there occurs
                    a
                    liquidation of, an
                    acceleration of obligations
                    under, or an
                    early termination of, that Specified Transaction, (2) defaults,
                    after giving effect to any applicable notice requirement or
                    grace period, in making any payment or delivery due on
                    the last payment, delivery or exchange date of, or any payment
                    on early termination of, a Specified Transaction (or
                    such default continues for at least three Local
                    Business Days if there is no applicable notice
                    requirement or grace period) or (3) disaffirms,
                    disclaims, repudiates or rejects, in whole or in part,
                    a Specified Transaction (or such action is taken by any
                    person or entity appointed or empowered to operate it
                    or act on its behalf);

                

        

         

        
          
            
            

          

          
            5

            
              

            

          

          
            
            

          

        

        
          	
                   

                  
                    (vi) Cross
                      Default. If
                      “Cross Default” is specified in
                      the Schedule as applying to the party, the occurrence or existence
                      of (1) a default, event of default or other similar condition
                      or
                      event
                      (however described) in respect of such
                      party, any Credit Support Provider of such party
                      or any applicable Specified Entity of such party under
                      one or more agreements or instruments relating to Specified
                      Indebtedness of any of them (individually or collectively) in an
                      aggregate amount of not less than the applicable Threshold
                      Amount (as
                      specified in the Schedule) which has resulted in such Specified
                      Indebtedness becoming, or becoming capable at such time of being
                      declared, due and payable under such agreements or
                      instruments, before it would
                      otherwise have been due and payable or (2) a default
                      by such party, such Credit Support Provider or such Specified
                      Entity (individually or collectively) in making one or
                      more payments on the due date thereof
                      in an aggregate
                      amount of not less than the applicable Threshold Amount
                      under such agreements or instruments (after giving effect to any
                      applicable notice requirement or grace
                      period);

                  

                
	
                   

                  (vii) Bankruptcy.
                    The
                    party, any Credit Support Provider
                    of
                    such party or any applicable Specified Entity of such
                    party:—

                
	
                   

                  (1) is
                    dissolved (other than pursuant to a consolidation, amalgamation
                    or
                    merger); (2) becomes
                    insolvent or is
                    unable to
                    pay its debts or fails or admits in writing
                    its inability generally to pay its debts as they
                    become due; (3) makes a general assignment,
                    arrangement or composition with or for the benefit of
                    its creditors; (4) institutes or has instituted
                    against it a proceeding seeking a judgment of
                    insolvency or bankruptcy or any other relief under
                    any bankruptcy or insolvency law or
                    other similar law affecting
                    creditors' rights, or a petition is presented for its
                    winding-up or liquidation, and, in the case of any such
                    proceeding or petition instituted or
                    presented against it, such proceeding or petition (A) results in
                    a judgment of insolvency or bankruptcy or the entry of
                    an order for relief or the making of an order for its winding-up or
                    liquidation or (B) is
                    not dismissed, discharged, stayed or restrained in each
                    case within 30 days of the institution
                    or presentation thereof; (5) has
                    a resolution
                    passed for its winding-up, official management or
                    liquidation (other than pursuant to a consolidation,
                    amalgamation or merger); (6) seeks or becomes subject
                    to the appointment of an administrator, provisional liquidator,
                    conservator, receiver,
                    trustee, custodian or other similar official
                    for it or for all or substantially all its assets; (7)
                    has a secured party take possession of all or substantially all
                    its
                    assets or has a distress, execution, attachment,
                    sequestration
                    or other legal process
                    levied, enforced or sued on or against all or
                    substantially all its assets and such secured party
                    maintains possession, or any such process
                    is not dismissed, discharged, stayed or restrained, in each
                    case within 30 days thereafter; (8) causes or is subject to
                    any event with respect to it which, under the applicable
                    laws of any jurisdiction, has an analogous effect to any of the
                    events specified in clauses (1) to (7) (inclusive);
                    or (9) takes any action in
                    furtherance of, or indicating its consent to, approval
                    of, or acquiescence in, any of the foregoing acts;
                    or

                
	
                   

                  (viii) Merger
                    Without Assumption. The
                    party or any Credit Support Provider of such party
                    consolidates or amalgamates
                    with, or merges with or into,
                    or transfers all or substantially all its assets
                    to, another entity and, at the time of such consolidation,
                    amalgamation, merger or transfer:—

                
	
                   

                  (1) the
                    resulting, surviving or transferee entity fails
                    to assume all the obligations of such party
                    or such Credit Support Provider under this Agreement or any
                    Credit Support Document to which it or its predecessor
                    was a party by operation of law or pursuant to an agreement
                    reasonably satisfactory to the other party to this Agreement;
                    or

                
	
                   

                  (2) the
                    benefits of any Credit Support Document fail to extend (without
                    the
                    consent of the other party) to the performance by such
                    resulting, surviving or transferee entity of its
                    obligations under this Agreement.

                
	
                   

                  (b) Termination
                    Events. The
                    occurrence at any time with respect to a party or, if
                    applicable, any Credit Support Provider of
                    such party or any Specified
                    Entity of such party of any event specified below constitutes
                    an Illegality if the event is specified in (i) below, a Tax
                    Event if the event is specified in (ii) below or a Tax
                    Event Upon Merger if the event is specified in (iii) below, and,
                    if specified to be
                    applicable, a Credit Event

                

        

        

        
          
            
            

          

          
            6

            
              

            

          

          
            
            

          

        

        
          	
                   

                  Upon
                    Merger if the event is specified pursuant to (iv) below
                    or
                    an Additional Termination Event if the event
                    is specified pursuant to (v) below:—

                
	
                   

                  (i) Illegality.
                    Due
                    to
                    the adoption of, or any change in, any
                    applicable law after the date on which
                    a Transaction is entered into, or due to the promulgation
                    of, or any change in, the interpretation by
                    any court, tribunal or regulatory authority with competent
                    jurisdiction of any applicable law after
                    such date, it becomes unlawful (other than as a result of a
                    breach by the party of Section 4(b)) for
                    such party (which will be the Affected
                    Party):—

                
	
                   

                  (1) to
                    perform any absolute or contingent obligation to make a payment
                    or delivery or to receive a payment or delivery
                    in respect of such Transaction or to comply with any other
                    material provision of this Agreement relating to such Transaction;
                    or

                
	
                   

                  (2) to
                    perform, or for any Credit Support
                    Provider of such
                    party to perform, any contingent
                    or other obligation which the party (or such Credit Support
                    Provider) has under any Credit
                    Support Document relating to such
                    Transaction;

                
	
                   

                  (ii) Tax
                    Event. Due
                    to (x) any action
                    taken by a taxing authority, or brought in a court of competent
                    jurisdiction, on or after the date on which a Transaction
                    is entered into (regardless of whether such
                    action is taken or brought with respect to a party to this
                    Agreement) or (y) a Change in Tax Law,
                    the party (which will be the Affected Party) will, or there is a
                    substantial likelihood that it will, on
                    the next succeeding Scheduled Payment Date (1) be required to
                    pay to the other party an additional amount in respect
                    of an Indemnifiable Tax under Section 2(d)(i)(4) (except
                    in respect of interest under Section 2(e),
                    6(d)(ii) or 6(e)) or (2) receive a payment from which an amount
                    is required to be deducted or withheld for or on
                    account of a Tax (except in respect of interest
                    under Section 2(e), 6(d)(ii) or 6(e)) and no
                    additional amount is required to be paid in respect of
                    such Tax under Section 2(d)(i)(4) (other than by
                    reason of Section 2(d)(i)(4)(A) or (B));

                
	
                   

                  (iii) Tax
                    Event Upon Merger. The
                    party (the “Burdened Party”) on the next succeeding Scheduled
                    Payment Date will
                    either (1) be required to pay an additional
                    amount in respect of an Indemnifiable Tax under Section
                    2(d)(i)(4) (except in respect of interest under Section 2(e),
                    6(d)(ii)
                    or 6(e)) or (2) receive a
                    payment from which an amount has been deducted or withheld for
                    or
                    on account of any Indemnifiable Tax
                    in respect of which the other
                    party is not required to pay an additional amount
                    (other than by reason of Section 2(d)(i)(4)(A) or (B)), in
                    either case as a result of a party
                    consolidating or amalgamating with, or merging with or into, or
                    transferring all or substantially all its assets to,
                    another entity (which will be the Affected Party) where such
                    action
                    does not constitute an event described in Section
                    5(a)(viii);

                
	
                   

                  (iv)  Credit
                    Event Upon Merger. If
                    “Credit Event Upon Merger” is specified in the
                    Schedule as applying
                    to the party,
                    such party (“X”), any Credit Support Provider of X or any applicable
                    Specified Entity of X
                    consolidates or amalgamates
                    with, or merges with or into,
                    or transfers all or substantially all its assets
                    to, another entity and such action does
                    not constitute an event described
                    in
                    Section 5(a)(viii) but the creditworthiness of the
                    resulting, surviving or transferee entity is materially
                    weaker than that of X, such Credit Support
                    Provider or such Specified Entity,
                    as
                    the case may be, immediately prior
                    to such action (and, in such event, X or its successor
                    or transferee, as appropriate, will be the Affected Party);
                    or

                
	
                   

                  (v) Additional
                    Termination Event. If
                    any “Additional Termination Event” is specified in the
                    Schedule or any Confirmation as applying, the occurrence of such
                    event (and, in such event, the Affected Party or
                    Affected Parties shall be as specified for such Additional
                    Termination Event in the Schedule or such
                    Confirmation).

                
	
                   

                  (c) Event
                    of Default and Illegality. If
                    an event or circumstance which would otherwise constitute or
                    give rise to an Event of Default also constitutes an
                    Illegality, it will be treated as an
                    Illegality and will not
                    constitute an Event of
                    Default.

                

        

         

        
          
            
            

          

          
            7

            
              

            

          

          
            
            

          

        

        
          	
                   

                  6. Early
                    Termination

                
	
                   

                  (a) Right
                    to Terminate Following Event of Default. If
                    at any time an Event of Default with respect to
                    a party (the “Defaulting Party”) has occurred and is then
                    continuing, the other party (the “Non-defaulting
                    Party”) may, by
                    not more than 20 days notice to
                    the Defaulting Party specifying the relevant Event of Default,
                    designate a day not earlier than the day such notice is
                    effective as an Early Termination Date in respect of
                    all outstanding Transactions. If, however, “Automatic Early
                    Termination” is specified in the Schedule as
                    applying to a party, then an Early Termination Date in
                    respect of all outstanding Transactions will occur immediately upon the
                    occurrence with respect to such party of an Event
                    of Default specified in Section 5(a)(vii)(l), (3), (5),
                    (6)
                    or, to the extent analogous thereto, (8), and as of
                    the time immediately preceding the institution of the
                    relevant proceeding or the presentation of the
                    relevant petition upon the occurrence with respect
                    to such party of an Event of Default
                    specified in Section 5(a)(vii)(4) or, to the extent
                    analogous thereto, (8).

                
	
                   

                  (b) Right
                    to Terminate Following Termination Event.

                
	
                   

                  (i) Notice.
                    If
                    a Termination Event occurs, an Affected Party will, promptly
                    upon
                    becoming aware of
                    it, notify the other
                    party, specifying the nature of that Termination Event
                    and each Affected Transaction
                    and will also give
                    such other information about
                    that Termination Event as the
                    other party may reasonably
                    require.

                
	
                   

                  (ii) Transfer
                    to Avoid Termination Event. If
                    either an Illegality under Section 5(b)(i)(l) or a Tax
                    Event occurs and there is only one Affected Party, or if a Tax
                    Event Upon Merger occurs and the Burdened Party is the
                    Affected Party, the Affected Party will, as a condition to its
                    right to designate an Early Termination Date under
                    Section 6(b)(iv), use all reasonable efforts (which
                    will not require such party to incur a loss,
                    excluding
                    immaterial, incidental expenses)
                    to transfer within 20 days after it gives notice under
                    Section 6(b)(i) all its rights and obligations under this
                    Agreement in respect of the Affected Transactions
                    to another of its Offices or Affiliates so that
                    such Termination Event
                    ceases to exist.

                
	
                   

                  If
                    the Affected Party is not able to make such a transfer it will
                    give notice
                    to the other party to that effect within such
                    20 day period, whereupon the other party may effect such
                    a transfer within
                    30 days after the notice is given under Section
                    6(b)(i).

                
	
                   

                  Any
                    such transfer by a party under this Section 6(b)(ii) will be
                    subject to
                    and conditional upon the prior written consent of the
                    other party, which consent will not be withheld if
                    such other party's policies in effect at such time
                    would permit it to enter into transactions with
                    the transferee on the
                    terms proposed.

                
	
                   

                  (iii) Two
                    Affected Parties. If
                    an Illegality under Section 5(b)(i)( 1) or
                    a
                    Tax Event occurs and there are two Affected Parties,
                    each party will use
                    all reasonable efforts to reach agreement within 30 days
                    after notice thereof is given under Section 6(b)(i) on action to
                    avoid that Termination Event.

                
	
                   

                  (iv) Right to
                    Terminate. If:—

                
	
                   

                  (1) a
                    transfer under
                    Section 6(b)(ii) or an agreement
                    under Section 6(b)(iii), as the case may
                    be, has not been effected with respect to all Affected
                    Transactions within 30 days after an
                    Affected Party gives notice under Section 6(b)(i);
                    or

                
	
                   

                  (2) an
                    Illegality under Section 5(b)(i)(2), a Credit Event Upon Merger
                    or an Additional Termination Event occurs,
                    or a Tax Event
                    Upon Merger occurs and the Burdened Party is not
                    the Affected Party,

                
	
                   

                  either
                    party in the case of an Illegality, the
                    Burdened Party in the
                    case of a Tax Event Upon Merger,
                    any Affected Party in the case of a Tax Event or an Additional
                    Termination Event if there is more
                    than one Affected Party, or the party which is not the Affected
                    Party in the case of a Credit Event
                    Upon Merger or an Additional Termination Event if there is only
                    one Affected Party may, by not more than 20 days
                    notice to
                    the other party and provided that the relevant
                    Termination Event is then

                

        

        

        
          
            
            

          

          
            8

            
              

            

          

          
            
            

          

        

        
          	
                   

                  continuing,
                    designate a day not earlier than the day such notice is effective
                    as
                    an Early Termination Date in respect of all Affected
                    Transactions.

                
	
                   

                  (c) Effect
                    of Designation.

                
	
                   

                  (i) If
                    notice designating an Early Termination Date is given under Section
                    6(a)
                    or (b), the Early Termination Date will occur on the
                    date so designated, whether or not the
                    relevant Event of Default or Termination Event is
                    then continuing.

                
	
                   

                  (ii) Upon
                    the occurrence or effective designation of an Early
                    Termination Date, no further
                    payments or deliveries under Section 2(a)(i) or 2(e) in respect
                    of the Terminated Transactions will be required to
                    be made, but without prejudice to the
                    other provisions of this Agreement. The amount,
                    if any, payable in
                    respect of an Early Termination Date shall
                    be
                    determined pursuant to Section 6(e).

                
	
                   

                  (d) Calculations.

                
	
                   

                  (i) Statement.
                    On
                    or as soon as reasonably practicable following the
                    occurrence of an Early
                    Termination Date, each
                    party will make the calculations on its
                    part, if any, contemplated by Section 6(e)
                    and will provide to the other party a statement (1) showing, in
                    reasonable detail, such calculations (including all relevant
                    quotations and specifying any amount
                    payable under Section 6(e)) and (2) giving
                    details of the
                    relevant account to which any
                    amount payable to it is to be paid. In the
                    absence of written confirmation from the
                    source of a quotation obtained in determining a Market
                    Quotation, the records of
                    the party obtaining such quotation will be conclusive
                    evidence of the existence and accuracy of such
                    quotation.

                
	
                   

                  (ii) Payment
                    Date. An
                    amount calculated as being due in respect of any
                    Early Termination Date under Section 6(e) will
                    be payable on the day that notice of the amount payable
                    is effective (in the case of an Early
                    Termination Date which is designated or occurs as a result of
                    an Event of Default) and on the day
                    which is two Local Business Days after the day on
                    which notice of the amount payable is effective (in
                    the
                    case of an Early Termination Date which
                    is
                    designated as a result of a Termination
                    Event). Such amount will be paid together with (to the extent
                    permitted under applicable law)
                    interest thereon (before as well
                    as after judgment) in the Termination Currency, from (and including)
                    the relevant Early Termination Date to (but excluding) the date
                    such amount is paid, at the Applicable Rate. Such
                    interest will be calculated on the basis of daily
                    compounding and the actual
                    number of days elapsed.

                
	
                   

                  (e) Payments
                    on Early Termination. If
                    an Early Termination Date
                    occurs, the following provisions shall apply based
                    on the parties' election in the Schedule of a payment measure,
                    either “Market Quotation” or “Loss”, and a
                    payment method, either the “First Method” or the “Second Method”. If the
                    parties fail to designate a payment
                    measure or payment method in the Schedule, it will be
                    deemed that “Market Quotation”
                    or the “Second Method”, as
                    the case may be, shall apply. The amount,
                    if any, payable in respect of an Early
                    Termination Date and determined pursuant to this Section will be
                    subject to any Set-off.

                
	
                   

                  (i) Events
                    of Default. If
                    the Early Termination Date results from an Event of
                    Default:—

                
	
                   

                  (1) First
                    Method and Market Quotation.
                    If
                    the First Method and Market Quotation apply, the
                    Defaulting Party will
                    pay to the Non-defaulting Party the excess, if a positive
                    number, of (A) the
                    sum of the Settlement Amount (determined by the
                    Non-defaulting Party) in respect of the Terminated Transactions and
                    the Termination Currency Equivalent of the Unpaid Amounts owing
                    to the Non-defaulting Party over (B) the Termination Currency
                    Equivalent of the Unpaid Amounts owing to the
                    Defaulting Party.

                
	
                   

                  (2) First
                    Method and Loss. If
                    the First Method and Loss apply, the
                    Defaulting Party will pay
                    to the Non-defaulting Party, if a positive number, the
                    Non-defaulting Party's Loss in respect
                    of this Agreement.

                

        

         

        
          
            
            

          

          
            9

            
              

            

          

          
            
            

          

        

        
          	
                   

                  
                    (3) Second
                      Method and Market Quotation. If
                      the Second Method and Market Quotation apply,
                      an amount will be payable equal to (A) the sum of the Settlement
                      Amount (determined by
                      the Non-defaulting Party) in
                      respect of the Terminated Transactions and
                      the Termination Currency
                      Equivalent of the
                      Unpaid Amounts owing to the Non-defaulting Party less (B) the Termination
                      Currency Equivalent of the Unpaid Amounts owing to the
                      Defaulting Party. If that amount is a positive number, the
                      Defaulting Party will pay it to the Non-defaulting Party; if
                      it is a negative
                      number, the Non-defaulting
                      Party will pay the absolute value of that amount to the Defaulting
                      Party.

                  

                
	
                   

                  (4) Second
                    Method and Loss.
                    If
                    the Second Method and Loss apply, an
                    amount will be payable
                    equal to the Non-defaulting Party's Loss in respect of this
                    Agreement. If that amount is a
                    positive number, the
                    Defaulting Party will pay it to the Non-defaulting Party;
                    if it is a negative number, the Non-defaulting
                    Party will pay the absolute value of that amount
                    to the Defaulting Party.

                
	
                   

                  (ii) Termination
                    Events. If
                    the Early Termination Date results from a Termination
                    Event:—

                
	
                   

                  (1) One
                    Affected Party.
                    If
                    there is one Affected Party, the amount payable will be determined
                    in accordance with Section
                    6(e)(i)(3), if Market Quotation applies, or Section 6(e)(i)(4), if Loss
                    applies, except that,
                    in either case, references to the Defaulting Party and
                    to the Non-defaulting Party will be deemed to be
                    references to the Affected Party and the party
                    which is not the Affected Party, respectively,
                    and, if Loss applies and fewer than all the Transactions are being
                    terminated, Loss shall be calculated in respect of all
                    Terminated Transactions.

                
	
                   

                  (2) Two
                    Affected Parties. If
                    there are two Affected Parties:—

                
	
                   

                  (A) if
                    Market Quotation applies, each party will determine
                    a Settlement Amount in respect of the Terminated
                    Transactions, and an amount will be payable
                    equal to (I) the sum of (a) one-half of the
                    difference between the Settlement Amount of the party with
                    the higher Settlement Amount (“X”) and the Settlement
                    Amount of the party with the
                    lower Settlement Amount (“Y”) and (b) the Termination
                    Currency Equivalent of the Unpaid Amounts owing
                    to X less (II) the Termination Currency Equivalent of the Unpaid
                    Amounts owing to Y; and

                
	
                   

                  (B) if
                    Loss applies, each party will determine its
                    Loss in respect of this Agreement (or,
                    if fewer than all the Transactions are being terminated, in
                    respect of all Terminated Transactions) and an
                    amount will be payable equal to one-half
                    of
                    the difference between the Loss of
                    the party with the higher Loss (“X”) and
                    the Loss of the party with the lower
                    Loss (“Y”).

                
	
                   

                  If
                    the amount payable is a positive number, Y will pay it to X;
                    if it is
                    a negative number, X will pay the absolute
                    value of that amount to Y.

                
	
                   

                  (iii) Adjustment
                    for Bankruptcy. In
                    circumstances where an Early Termination Date occurs
                    because “Automatic Early Termination” applies in respect of a
                    party, the amount determined under
                    this Section 6(e) will be subject to such adjustments as
                    are appropriate and permitted by law to
                    reflect any payments or
                    deliveries made by one
                    party to the other under this Agreement (and retained
                    by such other party) during the period from the relevant
                    Early Termination Date to the date for
                    payment determined under Section 6(d)(ii).

                
	
                   

                  (iv) Pre-Estimate.
                    The
                    parties
                    agree that if Market Quotation
                    applies an amount recoverable under
                    this Section 6(e) is a reasonable pre-estimate of loss and
                    not a penalty. Such amount is payable for
                    the loss of bargain and the loss of protection against
                    future risks and except as otherwise provided
                    in this Agreement neither party will be entitled to recover
                    any additional damages as a consequence
                    of such losses.

                

        

         

        
          
            
            

          

          
            10

            
              

            

          

          
            
            

          

        

        
          	
                   

                  7. Transfer

                
	
                   

                  Subject
                    to Section 6(b)(ii), neither this Agreement nor any interest
                    or obligation
                    in or under this Agreement
                    may be transferred (whether
                    by way of security or otherwise) by either party without
                    the prior written consent
                    of the other party, except that: —

                
	
                   

                  (a) a
                    party may make such a transfer of this Agreement pursuant to
                    a consolidation or amalgamation
                    with, or merger with or into, or transfer of all or
                    substantially all its assets to,
                    another entity (but without
                    prejudice to any other right or remedy under this
                    Agreement); and

                
	
                   

                  (b) a
                    party may make such a transfer of all or any part of its interest
                    in
                    any amount payable to it from
                    a Defaulting Party under Section 6(e).

                
	
                   

                  Any
                    purported transfer that is not in compliance with this Section
                    will be
                    void.

                
	
                   

                  8. Contractual
                    Currency

                
	
                   

                  (a) Payment
                    in the Contractual Currency. Each
                    payment under this Agreement will be made in the
                    relevant currency specified
                    in this Agreement for that payment (the “Contractual Currency”). To the extent
                    permitted by applicable law, any obligation to make payments
                    under this Agreement in the Contractual
                    Currency will not be discharged or satisfied by any tender in
                    any currency other than the Contractual
                    Currency, except to the
                    extent such tender results in the actual receipt
                    by
                    the party to which payment is owed,
                    acting in a reasonable manner and
                    in good faith in converting the currency
                    so
                    tendered into the Contractual Currency, of the full amount
                    in the Contractual Currency of all amounts
                    payable in respect of this Agreement.
                    If for any reason the amount in the Contractual Currency so
                    received falls short of the amount in the
                    Contractual Currency payable
                    in respect of this Agreement, the party required
                    to
                    make the payment will, to the extent permitted by
                    applicable law, immediately pay such additional amount
                    in the Contractual Currency
                    as may be necessary to
                    compensate for the shortfall. If for any reason
                    the amount in the Contractual Currency
                    so received exceeds the amount
                    in the Contractual Currency payable
                    in
                    respect of this Agreement, the party
                    receiving the payment will refund promptly the amount of such
                    excess.

                
	
                   

                  (b) Judgments.
                    To
                    the extent permitted by applicable law, if any judgment or
                    order expressed in a currency other than the
                    Contractual Currency is rendered (i) for the payment
                    of
                    any amount owing in respect
                    of this Agreement, (ii) for the payment of any
                    amount relating to any early
                    termination in respect of this
                    Agreement or (iii) in respect
                    of a judgment or order of another court for the
                    payment of any amount described
                    in (i) or (ii) above, the party seeking recovery, after
                    recovery in full of the aggregate amount to which such
                    party is entitled pursuant to the judgment or order, will
                    be entitled to receive immediately from the other
                    party the amount of any shortfall of the Contractual
                    Currency received by such party as a consequence of
                    sums paid in such other currency and will refund promptly
                    to the other party any excess of the Contractual
                    Currency received by such party as a consequence of sums paid in
                    such other currency if such shortfall or
                    such excess arises or results from any variation between the
                    rate of exchange at which the Contractual
                    Currency is converted into the
                    currency of the judgment or order for
                    the purposes of such judgment or order
                    and the rate of exchange at which such party is able,
                    acting in a reasonable manner and in good faith in
                    converting the currency received
                    into the Contractual Currency, to purchase
                    the Contractual Currency with
                    the amount of the currency of the judgment or order
                    actually received by such party. The term “rate of
                    exchange” includes, without
                    limitation, any premiums and costs
                    of
                    exchange payable in connection with the
                    purchase of or conversion into the Contractual
                    Currency.

                
	
                   

                  (c) Separate
                    Indemnities. To
                    the extent permitted by applicable law,
                    these indemnities constitute separate and independent
                    obligations from the other obligations in this Agreement,
                    will be enforceable as separate and independent
                    causes of action, will apply notwithstanding any indulgence
                    granted by the party to which any payment is
                    owed and will not be affected by judgment being obtained or
                    claim or proof being made for any other sums
                    payable in respect of this Agreement.

                
	
                   

                  (d) Evidence
                    of Loss. For
                    the purpose of this Section 8, it will be sufficient for
                    a party to demonstrate that it would have
                    suffered a loss had an actual exchange or purchase been
                    made.

                

        

         

        
          
            
            

          

          
            11

            
              

            

          

          
            
            

          

        

        
          	
                   

                  9. Miscellaneous

                
	
                   

                  (a) Entire
                    Agreement. This
                    Agreement constitutes the entire agreement and understanding of the parties
                    with respect to its subject matter and supersedes all oral
                    communication and prior writings with respect
                    thereto.

                
	
                   

                  (b) Amendments.
                    No
                    amendment, modification or waiver in respect of this
                    Agreement will be effective unless in writing
                    (including a writing evidenced by a facsimile transmission) and
                    executed
                    by each of the parties or confirmed by an
                    exchange of telexes or electronic messages on an electronic messaging
                    system.

                
	
                   

                  (c) Survival
                    of Obligations. Without
                    prejudice to Sections 2(a)(iii) and 6(c)(ii),
                    the obligations of the parties under this
                    Agreement will survive the termination of any
                    Transaction.

                
	
                   

                  (d) Remedies
                    Cumulative. Except
                    as provided in this Agreement, the
                    rights, powers, remedies and
                    privileges provided in this Agreement are cumulative and not
                    exclusive of any rights, powers, remedies
                    and privileges provided by law.

                
	
                   

                  (e) Counterparts
                    and Confirmations.

                
	
                   

                  (i) This
                    Agreement (and each amendment, modification and waiver in respect
                    of it) may be executed and delivered in
                    counterparts (including by facsimile transmission), each
                    of which will be
                    deemed an original.

                
	
                   

                  (ii) The
                    parties intend that they are legally
                    bound by the terms of each Transaction
                    from the moment they agree to those terms
                    (whether orally or otherwise).
                    A Confirmation shall be entered into as
                    soon as practicable and may be executed and delivered in
                    counterparts (including by facsimile
                    transmission) or be created by an exchange of telexes or by an
                    exchange of electronic messages on an electronic messaging system,
                    which in
                    each case will be sufficient
                    for all purposes to evidence a binding supplement to
                    this Agreement. The parties will specify therein or
                    through another effective
                    means that any such counterpart, telex or electronic
                    message constitutes a
                    Confirmation.

                
	
                   

                  (f) No
                    Waiver of Rights.
                    A
                    failure
                    or delay in exercising any right,
                    power or privilege in respect of this
                    Agreement will not
                    be presumed to operate
                    as
                    a waiver, and a single or partial exercise
                    of any right, power or privilege will not be
                    presumed to preclude any subsequent or further exercise, of that
                    right, power or privilege or the exercise of any other
                    right, power or privilege.

                
	
                   

                  (g) Headings.
                    The
                    headings used in this Agreement are for convenience of reference
                    only and are not to affect the construction
                    of or to be taken into consideration in interpreting this
                    Agreement.

                
	
                   

                  10. Offices;
                    Multibranch Parties

                
	
                   

                  (a) If
                    Section 10(a) is specified in the Schedule as applying, each
                    party that
                    enters into a Transaction through an Office other
                    than its head or home office represents to the other party
                    that, notwithstanding the place of booking office
                    or jurisdiction
                    of incorporation or organisation
                    of
                    such party, the obligations of such party are the same
                    as if it had entered into the Transaction through its head
                    or
                    home office. This representation
                    will be deemed to be repeated by such party on each date on
                    which a Transaction is entered
                    into.

                
	
                   

                  (b) Neither
                    party may change the Office through which it makes and
                    receives payments or deliveries
                    for the purpose of a Transaction without the prior written
                    consent of the other party.

                
	
                   

                  (c) If
                    a party is specified as a Multibranch Party in the Schedule,
                    such
                    Multibranch Party may make
                    and receive payments or deliveries under
                    any Transaction through any Office listed
                    in
                    the Schedule, and the
                    Office through which it makes and receives payments or
                    deliveries with respect to a Transaction will be
                    specified in the relevant Confirmation.

                
	
                   

                  11. Expenses

                
	
                   

                  A
                    Defaulting Party will, on demand, indemnify and hold harmless
                    the other
                    party for and against all
                    reasonable out-of-pocket expenses, including legal fees and
                    Stamp Tax, incurred by such other party by
                    reason of the enforcement
                    and protection of its rights under this Agreement or
                    any Credit Support Document to which the Defaulting
                    Party is a party or by reason of the early
                    termination of any Transaction, including,
                    but not limited to, costs of
                    collection.

                

        

         

        
          
            
            

          

          
            12

            
              

            

          

          
            
            

          

        

        
          	
                   

                  12. Notices

                
	
                   

                  (a) Effectiveness. Any
                    notice or other
                    communication in respect of this Agreement
                    may be given in any manner set forth below
                    (except that a notice or other communication
                    under Section 5 or 6 may not be given
                    by facsimile transmission or electronic messaging system) to the
                    address or number or in accordance with
                    the electronic messaging system details provided (see the
                    Schedule) and will be deemed effective as
                    indicated:—

                
	
                   

                  (i) if
                    in writing and delivered in person or by courier, on the date
                    it is
                    delivered;

                
	
                   

                  (ii) if
                    sent by telex, on the date the recipient's answerback is
                    received;

                
	
                   

                  (iii) if
                    sent by facsimile transmission, on the date that transmission
                    is
                    received by a responsible employee of  the
                    recipient in legible form (it being agreed that the burden of
                    proving receipt will be on the sender and
                    will not be met by a transmission report generated by
                    the sender's facsimile machine);

                
	
                   

                  (iv) if
                    sent by certified or registered mail (airmail, if overseas) or
                    the equivalent (return receipt
                    requested), on the date that mail is delivered or its
                    delivery is attempted; or

                
	
                   

                  (v) if
                    sent by electronic messaging system, on the date that electronic
                    message
                    is received,

                
	
                   

                  unless
                    the
                    date of that delivery (or attempted delivery) or that receipt,
                    as
                    applicable, is not a Local Business
                    Day or that communication
                    is delivered (or attempted)
                    or
                    received, as applicable, after the close of business
                    on a Local Business Day,
                    in which case that communication
                    shall be deemed given and effective on the first
                    following day that is a Local Business
                    Day.

                
	
                   

                  (b) Change
                    of Addresses.
                    Either
                    party may by notice to the other change the
                    address, telex or facsimile
                    number or electronic messaging
                    system details at which notices
                    or
                    other communications
                    are to be given to

                
	
                  it.

                
	
                   

                  13. Governing
                    Law and Jurisdiction

                
	
                   

                  (a) Governing
                    Law. This
                    Agreement will be governed by and construed
                    in accordance with the law
                    specified in the Schedule.

                
	
                   

                  (b) Jurisdiction.
                    With
                    respect to any suit, action or
                    proceedings relating to this Agreement
                    (“Proceedings”), each party irrevocably:—

                
	
                   

                  (i) submits
                    to the jurisdiction
                    of the English courts, if this Agreement
                    is expressed to be governed
                    by English law, or to the non-exclusive jurisdiction of the
                    courts of the State of New York and the
                    United States District Court located in the Borough of Manhattan
                    in New York City, if this
                    Agreement is expressed to be governed by the laws of the
                    State of New York; and

                
	
                   

                  (ii) waives
                    any objection which it may have at any time to the laying
                    of venue of any Proceedings
                    brought in any such court, waives any claim that such
                    Proceedings have been brought in an
                    inconvenient forum and further waives the right to object,
                    with respect to such Proceedings, that
                    such court does not have any jurisdiction over such
                    party.

                
	
                   

                  Nothing
                    in this Agreement precludes either party from bringing Proceedings
                    in any other jurisdiction
                    (outside, if this Agreement is expressed to be
                    governed by English law, the Contracting States, as defined
                    in Section 1(3) of
                    the Civil Jurisdiction and Judgments Act 1982 or
                    any modification, extension or
                    reenactment thereof for the time being in force) nor will
                    the bringing of Proceedings in any one or more
                    jurisdictions preclude the bringing of Proceedings in any
                    other jurisdiction.

                

        

         

        
          
            
            

          

          
            13

            
              

            

          

          
            
            

          

        

        
          	
                   

                  
                    (c) Service
                      of Process. Each
                      party
                      irrevocably appoints the Process Agent
                      (if any) specified opposite
                      its name in the Schedule
                      to receive, for it and on its behalf, service of process
                      in
                      any Proceedings. If for any reason any party's Process
                      Agent is unable to act as such, such party will promptly
                      notify the other party and within 30 days
                      appoint a substitute process agent acceptable to the other
                      party. The parties irrevocably
                      consent to service of process given in the manner provided
                      for notices in Section 12. Nothing in this
                      Agreement will affect the right of either party to serve
                      process in any other manner permitted by law.

                  

                
	
                   

                  (d) Waiver
                    of Immunities. Each
                    party irrevocably waives, to the fullest
                    extent permitted by applicable
                    law, with respect to itself
                    and its
                    revenues and assets (irrespective of their use or
                    intended use), all immunity
                    on the grounds of sovereignty
                    or other similar grounds from
                    (i) suit, (ii) jurisdiction of any court, (iii) relief
                    by way of injunction, order
                    for specific performance or for recovery of property,
                    (iv) attachment of its assets
                    (whether before or after judgment) and (v) execution or
                    enforcement of any judgment to which it or its
                    revenues or assets might otherwise be entitled in any
                    Proceedings in the courts of any jurisdiction and
                    irrevocably agrees, to the extent permitted
                    by applicable law, that it will
                    not claim any such immunity in any
                    Proceedings.

                
	
                   

                  14. Definitions

                
	
                   

                  As
                    used in this Agreement:—

                
	
                   

                  “Additional
                    Termination Event” has
                    the meaning specified in Section 5(b).

                
	
                   

                  “Affected
                    Party” has
                    the meaning specified in Section 5(b).

                
	
                   

                  “Affected
                    Transactions” means
                    (a) with respect to any Termination Event
                    consisting of an Illegality, Tax
                    Event or Tax Event Upon Merger, all Transactions
                    affected by the occurrence of such Termination Event
                    and (b) with respect to any other Termination Event,
                    all Transactions.

                
	
                   

                  “Affiliate”
                    means,
                    subject to the Schedule, in relation to any person, any
                    entity controlled, directly or
                    indirectly, by the person, any entity that controls,
                    directly or indirectly, the person or
                    any entity directly or indirectly under common
                    control with the person. For this
                    purpose, “control” of any entity or person means
                    ownership of a majority of the voting power of the entity
                    or person.

                
	
                   

                  “Applicable
                    Rate” means:—

                
	
                   

                  (a) in
                    respect of obligations payable or deliverable (or which would
                    have been
                    but for Section 2(a)(iii))
                    by a Defaulting Party, the Default
                    Rate;

                
	
                   

                  (b) in
                    respect of an obligation
                    to pay an amount under Section 6(e) of
                    either party from and after the date
                    (determined in accordance with Section 6(d)(ii)) on which
                    that amount is payable, the Default Rate;

                
	
                   

                  (c) in
                    respect of
                    all other obligations payable or deliverable
                    (or which would have been but for
                    Section 2(a)(iii)) by a Non-defaulting Party, the
                    Non-default Rate; and

                
	
                   

                  (d) in
                    all other cases, the Termination Rate.

                
	
                   

                  “Burdened
                    Party” has
                    the meaning specified in Section 5(b).

                
	
                   

                  “Change
                    in Tax Law” means
                    the enactment,
                    promulgation, execution or ratification of,
                    or any change in or
                    amendment to, any law (or
                    in the application or official interpretation
                    of
                    any law) that occurs on or after the
                    date on which the relevant Transaction is entered
                    into.

                
	
                   

                  “consent”
                    includes
                    a consent, approval, action, authorisation, exemption,
                    notice, filing, registration or
                    exchange control consent.

                
	
                   

                  “Credit
                    Event Upon Merger” has
                    the meaning specified in Section 5(b).

                
	
                   

                  “Credit
                    Support Document” means
                    any
                    agreement or instrument that is specified as such
                    in
                    this Agreement.

                
	
                   

                  “Credit
                    Support Provider” has
                    the meaning specified in the Schedule.

                
	
                   

                  “Default
                    Rate” means
                    a rate per annum equal to the cost (without proof or evidence
                    of
                    any actual cost) to the relevant payee (as
                    certified by it) if it were to fund or of funding the relevant
                    amount plus
                    1% per
                    annum.

                

        

         

        
          
            
            

          

          
            14

            
              

            

          

          
            
            

          

        

        
          	
                   

                  “Defaulting
                    Party” has
                    the meaning specified in Section 6(a).

                
	
                   

                  “Early
                    Termination Date” means
                    the date determined in accordance with Section 6(a) or
                    6(b)(iv).

                
	
                   

                  “Event
                    of Default” has
                    the meaning specified in Section 5(a) and,
                    if applicable, in the Schedule.

                
	
                   

                  “Illegality”
                    has
                    the meaning specified in Section 5(b).

                
	
                   

                  “Indemnifiable
                    Tax” means
                    any Tax other than a Tax that would not be imposed
                    in respect of a payment
                    under this Agreement but for a present or former connection
                    between the jurisdiction of the government or
                    taxation authority imposing
                    such Tax and the recipient of such payment or a person
                    related to such recipient
                    (including, without limitation, a connection arising from such
                    recipient or related person being or having
                    been a citizen or resident of such jurisdiction, or
                    being or having been organised,
                    present or engaged in a
                    trade or business in such jurisdiction, or having or having
                    had a permanent establishment or fixed place of
                    business in such jurisdiction,
                    but excluding a connection arising solely from such
                    recipient or related person
                    having executed, delivered, performed its obligations or
                    received a payment under, or enforced, this
                    Agreement or a Credit Support Document).

                
	
                   

                  “law” includes
                    any treaty, law, rule
                    or regulation (as modified, in the case of tax matters,
                    by the practice of
                    any relevant governmental revenue authority) and
                    “lawful”
                    and
                    “unlawful”
                    will
                    be construed
                    accordingly.

                
	
                   

                  “Local
                    Business Day” means,
                    subject to the Schedule, a day on which commercial
                    banks are open for business (including dealings
                    in foreign exchange and foreign currency deposits) (a)
                    in relation to any
                    obligation under Section 2(a)(i), in
                    the place(s) specified in the relevant Confirmation
                    or, if not so specified,
                    as otherwise agreed by
                    the parties in writing or determined pursuant
                    to
                    provisions contained, or incorporated
                    by reference, in this Agreement, (b) in relation
                    to any other payment, in the place where the relevant account
                    is located and, if different, in the principal
                    financial centre, if any, of the currency of
                    such payment, (c) in relation to any notice
                    or other communication, including notice contemplated under
                    Section 5(a)(i), in the
                    city specified in the address for notice provided by
                    the recipient and, in the case of a notice contemplated
                    by Section 2(b), in the place where the relevant
                    new account is to
                    be located and (d) in relation to
                    Section 5(a)(v)(2), in the
                    relevant locations for performance with respect to such Specified
                    Transaction.

                
	
                   

                  “Loss”
                    means,
                    with respect to this Agreement or one or more Terminated Transactions,
                    as
                    the case may be, and
                    a party, the Termination Currency Equivalent of an amount
                    that party reasonably determines in good faith to be
                    its total losses and
                    costs (or
                    gain, in which case expressed
                    as
                    a negative number) in connection with this Agreement
                    or that Terminated Transaction
                    or group of Terminated Transactions, as the case may
                    be, including any loss of
                    bargain, cost of funding or, at the election of such
                    party but without duplication, loss or
                    cost incurred as a result
                    of its terminating, liquidating, obtaining or
                    reestablishing any hedge or related
                    trading position (or any gain
                    resulting from any of them). Loss includes losses and
                    costs
                    (or gains) in respect of any payment or delivery
                    required to have been made
                    (assuming satisfaction of each applicable
                    condition precedent) on or before the relevant Early Termination Date
                    and not made, except, so as to avoid duplication, if
                    Section 6(e)(i)(1) or (3) or
                    6(e)(ii)(2)(A) applies. Loss
                    does not include a party's legal fees and out-of-pocket expenses referred to under
                    Section
                    11. A party will determine its Loss as of the relevant
                    Early Termination Date, or, if that is not reasonably
                    practicable, as of the earliest date thereafter as is
                    reasonably practicable. A party may (but need not) determine
                    its Loss by reference to
                    quotations of relevant rates or prices from
                    one or more leading dealers in the relevant
                    markets.

                

        

         

        
          
            
            

          

          
            15

            
              

            

          

          
            
            

          

        

        
          	
                   

                  
                    “Market
                      Quotation” means,
                      with respect to one or more Terminated Transactions and
                      a party making the
                      determination, an amount determined on the basis of
                      quotations from Reference Market-makers. Each
                      quotation will be for an amount, if any, that would be paid
                      to such party (expressed as a negative number)
                      or by such party (expressed
                      as a positive number) in consideration of an
                      agreement between such party (taking
                      into account any existing Credit Support Document with
                      respect to the obligations of such party) and the
                      quoting Reference Market-maker to enter into a transaction (the
                      “Replacement Transaction”) that would
                      have the effect of preserving for such party the
                      economic equivalent of any payment or delivery (whether
                      the underlying obligation was absolute or contingent and
                      assuming the satisfaction of each applicable
                      condition precedent) by the
                      parties under Section 2(a)(i) in respect of such
                      Terminated Transaction or group
                      of Terminated Transactions that
                      would, but for the occurrence of the relevant
                      Early Termination Date, have been required after that date. For
                      this purpose, Unpaid Amounts in respect of the Terminated Transaction or
                      group of Terminated Transactions are to be excluded but,
                      without limitation, any payment or delivery that
                      would, but for the relevant Early Termination Date, have
                      been required (assuming satisfaction of each
                      applicable condition precedent) after that Early Termination
                      Date is to be included. The Replacement
                      Transaction would be subject
                      to such documentation as such party and the Reference Market-maker may, in
                      good faith, agree. The
                      party making the determination (or its
                      agent) will request each Reference
                      Market maker to provide its quotation to the extent
                      reasonably practicable as of the same day and time
                      (without regard to different time zones) on or as soon as
                      reasonably practicable after the relevant Early
                      Termination Date. The day and
                      time as of which those quotations are to be obtained
                      will be selected in good
                      faith by the party obliged to
                      make a determination under Section 6(e), and,
                      if each party is so obliged, after
                      consultation with the other. If more than three quotations
                      are provided, the Market Quotation will be the
                      arithmetic mean of the quotations, without
                      regard to the quotations having the highest
                      and lowest values. If
                      exactly three such quotations are provided, the Market
                      Quotation will be the quotation remaining after
                      disregarding the highest and lowest quotations. For this
                      purpose, if more than one quotation has the same
                      highest value or lowest
                      value, then one of such quotations shall be disregarded.
                      If fewer than three quotations are provided, it will
                      be deemed that the Market Quotation in respect
                      of
                      such Terminated Transaction or group
                      of Terminated Transactions cannot be
                      determined.

                  

                
	
                   

                  “Non-default
                    Rate” means
                    a rate
                    per annum equal to the cost (without proof or evidence of any actual cost)
                    to the Non-defaulting Party (as certified by it) if it were
                    to fund the relevant amount.

                
	
                   

                  “Non-defaulting
                    Party” has
                    the meaning specified in Section 6(a).

                
	
                   

                  “Office”
                    means
                    a branch or office of a party, which may be such party's head
                    or home
                    office.

                
	
                   

                  “Potential
                    Event of Default” means
                    any
                    event which, with the giving of notice or
                    the lapse of time or both,
                    would constitute an Event of Default.

                
	
                   

                  “Reference
                    Market-makers” means
                    four leading dealers in the relevant
                    market selected by the party
                    determining a Market Quotation in good faith (a) from among
                    dealers of the highest credit standing which
                    satisfy all the criteria that such party applies generally
                    at the time in deciding whether to offer or to make
                    an extension of credit and
                    (b) to the extent practicable, from among such dealers
                    having an office in the same city.

                
	
                   

                  “Relevant
                    Jurisdiction” means,
                    with respect to a party, the jurisdictions (a) in
                    which the party is incorporated, organised, managed
                    and controlled or considered to have
                    its seat, (b) where an Office through
                    which the party is acting for purposes of this Agreement is
                    located, (c) in which the party executes this
                    Agreement and (d) in relation to any payment, from or
                    through which such payment is
                    made.

                
	
                   

                  “Scheduled
                    Payment Date” means
                    a date on which a payment or delivery is to be
                    made under Section 2(a)(i)
                    with respect to a Transaction.

                
	
                   

                  “Set-off”
                    means
                    set-off, offset, combination of accounts, right of retention
                    or
                    withholding or similar right
                    or requirement to which
                    the payer of an amount
                    under Section 6 is entitled
                    or
                    subject (whether arising under
                    this Agreement, another contract, applicable law or
                    otherwise) that is exercised by, or imposed on, such
                    payer.

                
	
                   

                  “Settlement
                    Amount” means,
                    with respect to a party and any Early Termination Date, the sum
                    of:—

                
	
                   

                  (a) the
                    Termination Currency
                    Equivalent of the Market Quotations (whether
                    positive or negative) for each
                    Terminated Transaction or group
                    of Terminated Transactions for which
                    a
                    Market Quotation is determined; 

                
	
                  and

                
	
                   

                  (b) such
                    party's Loss (whether positive or negative and without reference
                    to any Unpaid Amounts) for
                    each Terminated Transaction or
                    group of Terminated Transactions for which a Market Quotation cannot be
                    determined or would not (in the reasonable belief of the
                    party making the determination) produce a
                    commercially reasonable result.

                
	
                   

                  “Specified
                    Entity” has
                    the meaning specified in the
                    Schedule.

                

        

         

        
          
            
            

          

          
            16

            
              

            

          

          
            
            

          

        

        
          	
                   

                  “Specified
                    Indebtedness” means,
                    subject to the Schedule, any obligation
                    (whether present or future,
                    contingent or otherwise, as principal or surety or
                    otherwise) in respect of borrowed money.

                
	
                   

                  “Specified
                    Transaction” means,
                    subject
                    to the Schedule, (a) any transaction (including
                    an agreement with respect
                    thereto) now existing or hereafter
                    entered into between one party to this
                    Agreement (or any Credit Support Provider of such party or any
                    applicable Specified Entity of such party) and the other
                    party to this Agreement (or
                    any Credit Support Provider of
                    such
                    other party or
                    any applicable Specified Entity of
                    such other party) which is
                    a rate swap transaction, basis swap, forward rate
                    transaction, commodity
                    swap, commodity option, equity or
                    equity index swap, equity or equity index option, bond
                    option, interest rate option, foreign exchange transaction,
                    cap transaction, floor transaction, collar
                    transaction, currency swap
                    transaction, cross-currency rate swap
                    transaction, currency option or any other similar
                    transaction (including any option
                    with respect to any of these
                    transactions), (b) any combination of these
                    transactions and (c) any other
                    transaction identified as a Specified
                    Transaction in  this Agreement or the
                    relevant
                    confirmation.

                
	
                   

                  “Stamp
                    Tax” means
                    any stamp, registration, documentation or similar tax.

                
	
                   

                  “Tax”
                    means
                    any present
                    or future tax, levy, impost, duty, charge,
                    assessment or fee of any nature (including
                    interest, penalties and additions thereto) that is imposed
                    by any government or other taxing authority in
                    respect of any payment under this Agreement
                    other than a stamp, registration, documentation
                    or
                    similar tax.

                
	
                   

                  “Tax
                    Event” has
                    the meaning specified in Section 5(b).

                
	
                   

                  “Tax
                    Event Upon Merger” has
                    the meaning specified in Section 5(b).

                
	
                   

                  “Terminated
                    Transactions” means
                    with respect to any Early Termination Date
                    (a) if resulting from a Termination Event, all Affected Transactions
                    and (b) if resulting from
                    an
                    Event of Default, all Transactions
                    (in either case) in effect immediately
                    before the effectiveness of the notice designating that Early Termination
                    Date (or, if “Automatic Early Termination”
                    applies, immediately before that Early Termination
                    Date).

                
	
                   

                  “Termination
                    Currency” has
                    the meaning specified in the Schedule.

                
	
                   

                  “Termination
                    Currency Equivalent” means,
                    in respect of any
                    amount denominated in the Termination
                    Currency, such Termination Currency
                    amount and, in respect of any amount denominated in a currency other
                    than the Termination Currency
                    (the “Other Currency”), the amount in
                    the Termination Currency determined
                    by the party making the relevant determination as
                    being required to purchase such amount of such Other
                    Currency as at the relevant Early
                    Termination Date, or, if the relevant Market Quotation or Loss (as the case
                    may be), is determined as of a
                    later date, that later date, with the
                    Termination Currency at the rate equal to
                    the spot exchange rate of the foreign exchange agent
                    (selected as provided below) for the purchase of such
                    Other Currency with the Termination Currency at or about 11:00
                    a.m. (in the city in which such foreign
                    exchange agent is located) on such date as would be
                    customary for the determination of such a rate for the
                    purchase of such Other Currency for value on the
                    relevant Early Termination Date
                    or that later date. The
                    foreign exchange agent will, if only one party is obliged
                    to make a determination under Section 6(e), be
                    selected in good faith by that party and
                    otherwise will be agreed by the parties.

                
	
                   

                  “Termination
                    Event” means
                    an Illegality, a Tax Event or a Tax Event Upon Merger or,
                    if specified to be
                    applicable, a Credit Event Upon Merger or an Additional
                    Termination Event.

                
	
                   

                  “Termination
                    Rate” means
                    a rate per annum equal to the arithmetic mean of
                    the cost (without proof or
                    evidence of any actual cost) to each party (as
                    certified by such party) if it were to
                    fund or of funding such
                    amounts.

                

        

         

        
          
            
            

          

          
            17

            
              

            

          

          
            
            

          

        

        
          	
                   

                  “Unpaid
                    Amounts” owing
                    to any
                    party means, with respect to an Early Termination
                    Date, the aggregate of
                    (a) in respect of all Terminated
                    Transactions, the amounts
                    that became payable (or that would have become
                    payable but for Section 2(a)(iii)) to such party under
                    Section 2(a)(i) on or prior to such Early Termination
                    Date and which remain unpaid as at such Early
                    Termination Date and (b) in respect of each Terminated
                    Transaction, for each obligation
                    under Section 2(a)(i) which was (or
                    would have been but for
                    Section 2(a) (iii)) required
                    to be settled by delivery to such party on or prior to such Early Termination Date
                    and which has not been so settled as at such Early
                    Termination Date, an amount equal to the fair market value
                    of that which was (or would have been) required to be delivered
                    as of
                    the originally scheduled date
                    for delivery, in each case
                    together with (to the extent permitted
                    under applicable law) interest, in the currency
                    of such amounts, from
                    (and including) the date such amounts or
                    obligations were or would have been required
                    to have been paid or
                    performed to (but excluding) such Early
                    Termination Date, at the Applicable Rate. Such
                    amounts of interest will be calculated on the basis of
                    daily compounding and the actual number of days
                    elapsed. The fair market value of any obligation referred to in
                    clause (b) above shall be reasonably
                    determined by the party
                    obliged to make the determination
                    under Section 6(e) or, if each party is so obliged,
                    it shall be the average of the Termination Currency
                    Equivalents of the fair market values reasonably
                    determined by both parties.

                
	
                   

                  IN
                    WITNESS WHEREOF the parties have executed this document on the
                    respective dates specified below with effect from
                    the date specified on the first page of this
                    document.

                

        

        

        

        

        
          	
                  SWISS
                    RE FINANCIAL PRODUCTS CORPORATION

                	 	
                  HSBC
                    Bank USA, National Association, not individually, but solely
                    as
                    Supplemental Interest Trust Trustee on behalf of the Supplemental
                    Interest
                    Trust with respect to the ACE Securities Corp. Home Equity Loan
                    Trust,
                    Series 2006-NC2 Asset Backed Pass Through
                    Certificates.

                
	 	 	 
	
                   

                	 	
                   

                
	
                  By:
                    

                  Title:
                    

                  Date:
                    September 15, 2006

                	 	
                  By:
                     

                  Title:
                    

                  Date:
                    September 15, 2006

                

        

        

         

        

        

        (Signature
          Page for ISDA Master - Transaction Reference Number
          1055581)

      

      

      
        
          
          

        

        
          18

          
            

          

        

        
          
          

        

      

      (Multicurrency
        - Cross Border)

      

      

      ISDA®

      International
        Swaps and Derivatives Association, Inc.

      

      

      SCHEDULE
        

      to
        the 

      Master
        Agreement

      

      

      dated
        as
        of September 15, 2006

      

      and
        governing solely the Transaction with Reference Number1055581

      

      between

      

      
        	
                SWISS
                  RE FINANCIAL PRODUCTS CORPORATION

              	
                and

              	
                HSBC
                  Bank USA, National Association, not individually, but solely as
                  Supplemental Interest Trust Trustee on behalf of the Supplemental
                  Interest
                  Trust with respect to the ACE Securities Corp. Home Equity Loan
                  Trust,
                  Series 2006-NC2 Asset Backed Pass Through
                  Certificates.

              
	
                 

                ("Party
                  A")

                 

              	 	
                 

                ("Party
                  B")

              

      

       

      Part
        1

       

      Termination
        Provisions.

       

      
        	
                (a)

              	
                "Specified
                  Entity"
                  means in relation to Party A for the purpose
                  of:

              

      

       

      
        	 	
                Section
                  5(a)(v),

              	
                Not
                  Applicable

              
	 	
                Section
                  5(a)(vi),

              	
                Not
                  Applicable

              
	 	
                Section
                  5(a)(vii),

              	
                Not
                  Applicable

              
	 	
                Section
                  5(b)(iv),

                 

              	
                Not
                  Applicable

                 

              

      

      and
        in
        relation to Party B for the purpose of:

       

      
        	 	
                Section
                  5(a)(v),

              	
                Not
                  Applicable

              
	 	
                Section
                  5(a)(vi),

              	
                Not
                  Applicable

              
	 	
                Section
                  5(a)(vii),

              	
                Not
                  Applicable

              
	 	
                Section
                  5(b)(iv),

                 

              	
                Not
                  Applicable

                 

              

      

       

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

      
        	
                (b)

              	
                "Specified
                  Transaction"
                  will have the meaning specified in Section 14 of this
                  Agreement.

              

      

       

      
        	
                (c)

              	
                Certain
                  Events of Default.
                  The following Events of Default will apply to the parties as specified
                  below, and the definition of "Event of Default" in Section 14 is
                  deemed to
                  be modified accordingly:

              

      

       

      Section
        5(a)(i) (Failure
        to Pay or Deliver)
        will
        apply to Party A and Party B 

      Section
        5(a)(ii) (Breach
        of Agreement)
        will
        not apply to Party A or Party B.

      Section
        5(a)(iii) (Credit
        Support Default)
        will
        not apply to Party B.

      Section
        5(a)(iv) (Misrepresentation)
        will
        not apply to Party A or Party B.

      Section
        5(a)(v) (Default
        under Specified Transaction)
        will
        not apply to Party A or Party B.

      Section
        5(a)(vi) (Cross
        Default)
        will
        not apply to Party A or Party B.

      Section
        5(a)(vii) (Bankruptcy)
        will
        apply to Party A and Party B; provided
        that
        clause (2) thereof shall not apply to Party B.

      Section
        5(a)(viii) (Merger
        without Assumption)
        will
        apply to Party A and will not apply Party B.

       

      
        	
                (d)

              	
                Termination
                  Events.
                  The following Termination Events will apply to the parties as specified
                  below:

              

      

       

      Section
        5(b)(i) (Illegality)
        will
        apply to Party A and Party B.

      Section
        5(b)(ii) (Tax
        Event)
        will
        apply to Party A and Party B.

      Section
        5(b)(iii) (Tax
        Event upon Merger)
        will
        apply to Party A and will not apply to Party B; provided for clarification
        that
        Party B may be a Burdened Party for purpose of this provision.

      Section
        5(b)(iv) (Credit
        Event upon Merger)
        will
        not apply to Party A or Party B.

      

      
        	
                (e)

              	
                The
                  "Automatic
                  Early Termination"
                  provision of Section 6(a) of this Agreement will not apply to Party
                  A and
                  will not apply to Party B.

              

      

       

      
        	
                (f)

              	
                Payments
                  on Early Termination.
                  For the purpose of Section 6(e) of this
                  Agreement:

              

      

       

      
        	 	
                (i)

              	
                Market
                  Quotation will apply.

              

      

       

      
        	 	
                (ii)

              	
                The
                  Second Method will apply.

              

      

       

      
        	
                (g)

              	
                "Termination
                  Currency"
                  means United States Dollars.

              

      

       

      
        	
                (h)

              	
                Additional
                  Termination Events.
                  The following Additional Termination Events will apply, in each
                  case with
                  respect to Party B as the sole Affected Party (unless otherwise
                  provided
                  below): 

              

      

       

      
        	 	
                (i)

              	
                Swap
                  Counterparty Downgrade:
                  Party A fails to comply with the Downgrade Provisions as set forth
                  in Part
                  5(b). For all purposes of this Agreement, Party A shall be the
                  sole
                  Affected Party with respect to the occurrence of a Termination
                  Event
                  described in this Part 1(h)(i).

              

      

       

      
        	 	
                (ii)

              	
                Termination
                  of the Trust: The
                  Trust Fund (as defined in the Pooling and Servicing Agreement,
                  dated as of
                  September 1, 2006, among ACE Securities Corp., as the Depositor,
                  Countywide Home Loans Servicing LP, as the Servicer, Wells Fargo
                  Bank,
                  National Association, as the Master Servicer, Wells Fargo Bank,
                  National
                  Association, as the Securities Administrator and HSBC Bank USA,
                  National
                  Association, as the Trustee (the Pooling
                  and Servicing Agreement))
                  is terminated pursuant to the Pooling and Servicing Agreement,
                  provided,
                  however, that notwithstanding Section 6(b)(iv) of the Agreement,
                  both
                  Party A and Party B shall have the right to designate an Early
                  Termination
                  Date in respect of this Additional Termination
                  Event.

              

      

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

      
        	 	
                (iii)

              	
                Material
                  and Adverse Change to PSA:
                  The Pooling and Servicing Agreement is amended or modified without
                  the
                  prior written consent of Party A, where such consent is required
                  under the
                  terms of the Pooling and Servicing
                  Agreement.

              

      

       

      
        	 	
                (iv)

              	
                Optional
                  Redemption:
                  Irrevocable Notice of Servicer’s intention to exercise its option to
                  purchase the Mortgage Loans pursuant to Section 10.01 of the Pooling
                  and
                  Servicing Agreement provided, however, that notwithstanding Section
                  6(b)(iv) of the Agreement, both Party A and Party B shall have
                  the right
                  to designate an Early Termination Date in respect of this Additional
                  Termination Event. 

              

      

       

      
        	 	
                (v)

              	
                Provision
                  of Information Required by Regulation AB:
                  Party A shall fail to comply with the provisions of Part 5(s) upon
                  the
                  occurrence of a Swap Disclosure Event. For all purposes of this
                  Agreement,
                  Party A shall be the sole Affected Party with respect to the occurrence
                  of
                  a Termination Event described in this Part 1(h)(v).
                  

              

      

       

      Part
        2

       

      Tax
        Representations.

       

      
        	
                (a)

              	
                Payer
                  Representations.
                  For the purpose of Section 3(e) of this Agreement, Party A will
                  make the
                  following representation and Party B will make the following
                  representation:

              

      

       

      It
        is not
        required by any applicable law, as modified by the practice of any relevant
        governmental revenue authority, of any Relevant Jurisdiction to make any
        deduction or withholding for or on account of any Tax from any payment (other
        than interest under Section 2(e), 6(d)(ii) or 6(e) of this Agreement) to
        be made
        by it to the other party under this Agreement. In making this representation,
        it
        may rely on (i) the accuracy of any representations made by the other party
        pursuant to Section 3(f) of this Agreement, (ii) the satisfaction of the
        agreement contained in Section 4(a)(i) or 4(a)(iii) of this Agreement and
        the
        accuracy and effectiveness of any document provided by the other party pursuant
        to Section 4(a)(i) or 4(a)(iii) of this Agreement and (iii) the satisfaction
        of
        the agreement of the other party contained in Section 4(d) of this Agreement,
        provided
        that it
        shall not be a breach of this representation where reliance is placed on
        clause
        (ii) and the other party does not deliver a form or document under Section
        4(a)(iii) of this Agreement by reason of material prejudice to its legal
        or
        commercial position.

       

      
        	
                (b)

              	
                Payee
                  Representations.
                  For the purpose of Section 3(f) of this Agreement, Party A and
                  Party B
                  make the representations specified below, if
                  any:

              

      

       

      
        	 	
                (i)

              	
                Party
                  A represent that it is a corporation duly organized and existing
                  under the
                  laws of the State of Delaware and is a United States Resident for
                  United
                  States federal tax purposes.

              

      

      

      
        	 	
                (ii)

              	
                Party
                  B represents
                  that the beneficial owner of the payments made to it under this
                  Agreement
                  is either (i) a "U.S. person" (as that term is used in section
                  1.1441-4(a)(3)(ii) of United States Treasury Regulations) for United
                  States federal income tax purposes and an "Exempt recipient" within
                  the
                  meaning of section 1.6049-4(c)(1)(ii) of United States Treasury
                  Regulations, or (ii) a "non-U.S. branch of a foreign person" as
                  that term
                  is used in section 1.1441-4(a)(3)(ii) of the United States Treasury
                  Regulations (the "Regulations") for United States federal income
                  tax
                  purposes, and it is a "foreign person" as that term is used in
                  section
                  1.6041-4(a)(4) of the Regulations for United States federal income
                  tax
                  purposes.

              

      

      

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

      Part
        3

       

      Agreement
        to Deliver Documents.

       

      For
        the
        purpose of Sections 4(a)(i) and (ii) of this Agreement, each party agrees
        to
        deliver the following documents, as applicable:

       

      (a) Tax
        forms, documents or certificates to be delivered are:

       

      
        	
                Party
                  required

                to
                  deliver

                document

              	
                Form/Document/Certificate

              	
                Date
                  by which to be delivered

              
	
                Party
                  A and Party B

                 

              	
                Any
                  form or document required or reasonably requested to allow the
                  other party
                  to make payments under the Agreement without any deduction or withholding
                  for or on account of any Tax, or with such deduction or withholding
                  at a
                  reduced rate.

              	
                Promptly
                  upon reasonable demand by the other party.

                 

              

      

       

      (b)
        Other
        documents to be delivered are:

      

      
        	
                Party
                  required to deliver document

                 

              	
                Form/Document/Certificate

                 

              	
                Date
                  by which to be delivered

                 

              	
                Covered
                  by Section 3(d)
                  Representation

                 

              
	
                Party
                  A and Party B

                 

              	
                Incumbency
                  Certificate (or, if available the current authorized signature
                  book or
                  equivalent authorizing documentation) specifying the names, titles,
                  authority and specimen signatures of the persons authorized to
                  execute
                  this Agreement which sets forth the specimen signatures of each
                  signatory
                  to this Agreement and each Confirmation signing on its
                  behalf.

                 

              	
                Concurrently
                  with the execution and delivery of this Agreement unless previously
                  delivered and still in full force and effect.

                 

              	
                Yes

                 

              
	
                Party
                  A

                 

              	
                Opinions
                  of counsel of Party A reasonably satisfactory to Party B.

                 

              	
                Concurrently
                  with the execution and delivery of the Confirmation.

                 

              	
                No

                 

              
	
                Party
                  B

                 

              	
                Opinions
                  of counsel of Party B reasonably satisfactory to Party A.

                 

              	
                Concurrently
                  with the execution and delivery of the Confirmation.

                 

              	
                No

                 

              

      

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

        	
                Party
                  required to deliver document

                 

              	
                Form/Document/Certificate

                 

              	
                Date
                  by which to be delivered

                 

              	
                Covered
                  by Section 3(d)
                  Representation

              

      

      
        	
                Party
                  A

                 

              	
                The
                  Guaranty of Swiss Re dated as of the date hereof.

                 

              	
                Concurrently
                  with the execution and delivery of the Confirmation.

                 

              	
                No

                 

              
	
                Party
                  B

                 

              	
                An
                  executed copy of the Pooling and Servicing Agreement.

                 

              	
                Within
                  30 days after the date of this Agreement.

                 

              	
                No

                 

              
	
                Party
                  A

                 

              	
                A
                  copy of the most recent annual report of Swiss Re containing financial
                  statements certified by independent public accountants and prepared
                  in
                  accordance with Swiss law.

                 

              	
                Concurrently
                  with the execution and delivery of this Agreement and promptly
                  following
                  request by Party B thereafter

                 

              	
                Yes

                 

              

      

       

      Part
        4.

       

      Miscellaneous.

       

      (a) Addresses
        for Notices.
        For the
        purposes of Section 12(a) of this Agreement: 

       

      Party
        A:

       

      
        	 	Notices
                should be sent to the address of the relevant branch set out in the
                relevant Confirmation (as may be amended from time to time), provided
                that
                in the case of notices or communications relating to Section 5, 6,
                7, 11
                or 13 to, such notices should be sent to:
	 	 	 
	 	
                 

                Address:

              	
                 

                Swiss
                  Re Financial Products Corporation 

              
	 	 	
                55
                  East 52nd Street

              
	 	 	
                New
                  York, New York 10055

              
	 	 	
                Attention:
                  Head of Operations

              
	 	 	
                Facsimile
                  No. (917) 322-7201

              

      

      

      With
        a
        copy to 

      

      Swiss
        Re
        Financial Products Corporation

      55
        East
        52nd Street

      New
        York,
        New York 10055

      Attention:
        Legal Department

      Facsimile
        No.: (212) 317-5474

      

      Party
        B:

      

      HSBC
        Bank
        USA, National Association

      452
        Fifth
        Avenue

      New
        York,
        NY 10018

      Attn:
        Corporate Trust & Loan Agency - ACE 2006-NC2

      Fax:
        (212) 525-1300

      

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

      With
        a
        copy to

      

      Wells
        Fargo Bank N.A.

      9062
        Old
        Annapolis Road

      Columbia,
        MD 21045

      ATTN:
        Client Manager - ACE 2006-NC2

      Facsimile
        No.: (410) 715-2380

      

      
        	
                (b)

              	
                Process
                  Agent. For
                  the purposes of Section 13(c) of this
                  Agreement:

              

      

       

      Party
        A
        appoints as its Process Agent: Not Applicable.

       

      Party
        B
        appoints as its Process Agent: Not Applicable.

       

      
        	
                (c)

              	
                Offices.
                  With respect to Party A, the provisions of Section 10(a) will apply
                  to
                  this Agreement.

              

      

       

      
        	
                (d)

              	
                Multibranch
                  Party.
                  For the purpose of Section 10(c) of this
                  Agreement:

              

      

       

      Party
        A
        is not a Multibranch Party. 

      Party
        B
        is not a Multibranch Party.

       

      
        	
                (e)

              	
                Calculation
                  Agent.
                  The Calculation Agent is Party A.

              

      

       

      (f) Credit
        Support Document. 

       

      Credit
        Support Document means in relation to Party A: The Guaranty of Swiss Reinsurance
        Company (“Swiss Re”) dated as of the date hereof, and, in that event that Party
        A posts collateral under a Credit Support Annex or obtains a guarantee pursuant
        to Part 5(b) below, such Credit Support Annex or guarantee.

      

      Credit
        Support Document means in relation to Party B: Not Applicable.

       

      
        	
                (g)

              	
                Credit
                  Support Provider.

              

      

       

      Credit
        Support Provider means in relation to Party A: Swiss Reinsurance Company
        (“Swiss
        Re”) and, in that event that Party A obtains a guarantor pursuant to Part 5(b)
        below, such guarantor.

      

      Credit
        Support Provider means in relation to Party B: Not Applicable.

       

      
        	
                (h)

              	
                Governing
                  Law.
                  This Agreement will be governed by and construed in accordance
                  with the
                  laws of the State of New York (without reference to choice of law
                  doctrine
                  other than New York General Obligations Law Sections 5-1401 and
                  5-1402).

              

      

       

      
        	
                (i)

              	
                Netting
                  of Payments.
                  Subparagraph (ii) of Section 2(c) of this Agreement will apply
                  to all
                  Transactions (in each case starting from the date of this
                  Agreement).

              

      

       

      
        	
                (j)

              	
                "Affiliate."
                  Each of Party A and Party B shall be deemed to have no Affiliates
                  for
                  purposes of this Agreement, including for purposes of Section
                  6(b)(ii).

              

      

       

      
        	
                (k)

              	
                Jurisdiction.
                  Section 13(b) is hereby amended by: (i) deleting in the second
                  line of
                  subparagraph (i) thereof the word "non-", (ii) deleting “; and” from the
                  end of subparagraph 1 and inserting “.” at the end of such provision, and
                  (iii) deleting the final paragraph
                  thereof.

              

      

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

      
        	
                (l)

              	
                Waiver
                  of Jury Trial.
                  Each party waives, to the fullest extent permitted by applicable
                  law, any
                  right it may have to a trial by jury in respect of any suit, action
                  or
                  proceeding relating to this Agreement or any Credit Support Document.
                  Each
                  party certifies (i) that no representative, agent or attorney of
                  the other
                  party or any Credit Support Provider has represented, expressly
                  or
                  otherwise, that such other party would not, in the event of such
                  a suit,
                  action or proceeding, seek to enforce the foregoing waiver and
                  (ii)
                  acknowledges that it and the other party have been induced to enter
                  into
                  this Agreement and provide for any Credit Support Document, as
                  applicable,
                  by, among other things, the mutual waivers and certifications in
                  this
                  Section.

              

      

       

      
        	
                (m)

              	
                Consent
                  to Recording.
                  Each party (i) consents to the monitoring or recording, at any
                  time and
                  from time to time, by the other party of any and all communications
                  between officers or employees of the parties, (ii) waives any further
                  notice of such monitoring or recording, and (iii) agrees to notify
                  (and,
                  if required by law, obtain the consent of) its officers and employees
                  with
                  respect to such monitoring or recording. Any such recording may
                  be
                  submitted in evidence to any court or in any Proceeding for the
                  purpose of
                  establishing any matters pertinent to this Agreement or any
                  Transaction.

              

      

       

      
        	
                (n)

              	
                Severability.
                  If
                  any term, provision, covenant, or condition of this Agreement,
                  or the
                  application thereof to any party or circumstance, shall be held
                  to be
                  illegal, invalid or unenforceable (in whole or in part) for any
                  reason,
                  the remaining terms, provisions, covenants and conditions hereof
                  shall
                  continue in full force and effect as if this Agreement had been
                  executed
                  with the illegal, invalid or unenforceable portion eliminated,
                  so long as
                  this Agreement as so modified continues to express, without material
                  change, the original intentions of the parties as to the subject
                  matter of
                  this Agreement and the deletion of such portion of this Agreement
                  will not
                  substantially impair the respective benefits or expectations of
                  the
                  parties to this Agreement.

              

      

       

      The
        parties shall endeavor to engage in good faith negotiations to replace any
        illegal, invalid or unenforceable term, provision, covenant or condition
        with a
        valid or enforceable term, provision, covenant or condition, the economic
        effect
        of which comes as close as possible to that of the illegal, invalid or
        unenforceable term, provision, covenant or condition.

       

      Part
        5.

       

      Other
        Provisions.

       

      
        	
                (a)

              	
                Definitions. 

              

      

       

      This
        Agreement, including each Confirmation and each Swap Transaction, is subject
        to
        the 2000 ISDA Definitions, as amended, supplemented, updated, and superseded
        from time to time (the "Definitions"), as published by the International
        Swaps
        and Derivatives Association, Inc. ("ISDA") and will be governed in all respects
        by the Definitions (except that references to "Swap Transactions" shall be
        deemed to be references to "Transactions"). The Definitions are incorporated
        by
        reference in, and made part of, this Agreement and each Confirmation as if
        set
        forth in full in this Agreement and such Confirmations. In the event of any
        inconsistency between the provisions of this Agreement and the Definitions,
        this
        Agreement will prevail (and, in the event of any inconsistency between any
        Confirmation and the Definitions, the Confirmation will control). Any reference
        in a Confirmation to any Definitions which are amended or supplemented in
        this
        Schedule shall be deemed to be a reference to such Definitions as so amended
        or
        supplemented, unless the Confirmation states, by specific reference to any
        such
        amendment or supplement, that such amendment or supplement will not apply
        in
        respect of the Transaction to which such Confirmation relates. Any capitalized
        terms used but not otherwise defined in this Agreement shall have the meanings
        assigned to them (or incorporated by reference) in the Pooling and Servicing
        Agreement. 

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

      
        	
                (b)

              	
                Downgrade
                  Provisions. 

              

      

      

      Ratings
        Downgrade Event.
        It
        shall be a “Ratings Downgrade Event” if at any time Party A fails to meet the
        Required Rating (as such term is defined below). If a Ratings Downgrade Event
        occurs, then, within thirty (30) days following the Ratings Downgrade Event
        (unless, within thirty (30) days of such Ratings Downgrade Event, each of
        S&P, Moody’s and any other rating agency then rating the Certificates and
        any notes backed by the Certificates (“Notes”) (each such agency, a “Rating
        Agency”) has reconfirmed the ratings of the Certificates and any Notes which
        were in effect immediately prior to such Ratings Downgrade Event), Party
        A
        shall, at its own expense and subject to the Rating Agency Condition, take
        one
        of the following four actions: 

       

      
        	 	
                (A)
                  

              	
                Replace
                  Itself:
                  Find a party to whom all of Party A's interests and obligations
                  under this
                  Agreement shall be assigned at no cost to Party B, and following
                  which
                  Party A shall be released from all further obligations under this
                  Agreement, or

              

      

      

      
        	 	
                (B)
                  

              	
                Post
                  Collateral:
                  deliver collateral within thirty (30) days of such Ratings Downgrade
                  Event, pursuant to an ISDA Credit Support Annex (subject to New
                  York Law)
                  and concurrently
                  with such delivery of Eligible Collateral, Party A shall cause
                  its counsel
                  to deliver an opinion as to the enforceability of Counterparty’s security
                  interest in such Eligible Collateral (i.e.
                  that, notwithstanding Party A's insolvency, the collateral will
                  be
                  available to meet swap obligations free from any preference claim
                  or
                  moratorium) that
                  satisfies the Rating Agency Condition,
                  or

              

      

      

      
        	 	
                (C)
                  

              	
                Obtain
                  a Guaranty:
                  Obtain a guaranty of Party A’s obligations under this Transaction from a
                  third party that meets or exceeds the Approved Ratings Threshold,
                  in form
                  and substance (the sufficiency of such guaranty subject to approval
                  by
                  each Rating Agency) or

              

      

      

      
        	 	
                (D)
                  

              	
                Other
                  Arrangement with Ratings Agency Approval:
                  Establish any other arrangement which will be sufficient to restore
                  the
                  immediately prior ratings of the Certificates and any Notes.
                  

              

      

      

      If
        Party
        A has failed to take one of the aforementioned actions within thirty (30)
        days
        of the Ratings Downgrade Event, such failure shall constitute an Additional
        Termination Event with Party A as the sole Affected Party. 

      

      “Required
        Rating”
means,
        with respect to Party A or an entity guaranteeing the obligations of Party
        A
        hereunder, (x) either (i) if Party A or such entity has only a long-term
        rating
        by Moody’s, a long-term senior, unsecured debt obligation rating, credit rating
        or other similar rating (as the case may be, the “Long-Term Rating”) of at least
“Aa3” by Moody’s and if rated “Aa3” by Moody’s is not on negative credit watch
        by Moody’s or (ii) if Party A or such entity has a Long-Term Rating and a
        short-term rating by Moody’s, a Long-Term Rating of at least “A1” by Moody’s and
        a short-term rating of “P-1” by Moody’s and, in each case, such rating is not on
        negative credit watch by Moody’s, and (y) (i) a short-term rating of at least
“A-1” by S&P or (ii) if Party A or such entity does not have a short-term
        rating by S&P, a Long-Term Rating of at least “A+” by S&P.

      

      Notwithstanding
        the foregoing, within ten (10) Business Days upon the occurrence of either
        of
        the following conditions, Party A shall find a party to whom all of Party
        A's
        interests and obligations under this Agreement shall be assigned, subject
        to the
        Rating Agency Condition and at Party A’s own expense, and following which Party
        A shall be released from all further obligations under this
        Agreement:

      

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

      (1)
         Party
        A’s
        Short Term rating is reduced below “A-3”
by
        S&P or Party A’s long-term unsecured and unsubordinated debt rating (its
“Long Term rating”) is reduced below “BBB-”
by
        S&P or 

       

      (2)
         
        S&P
        or Moody’s withdraws its ratings of Party A. 

       

      “Rating
        Agency Condition”
means,
        with respect to any particular proposed act or omission to act hereunder
        that
        the party acting or filing to act must consult with each Rating Agency and
        receive from each Rating Agency a prior written confirmation that the proposed
        action or inaction would not cause a downgrade or withdrawal of the then-current
        rating of any Certificates or Notes.

       

      
        	(c)	
                Section
                  3(a) of this Agreement is hereby amended to include the following
                  additional representations after paragraph
                  3(a)(v):

              

      

       

      (vi)
        Eligible
        Contract Participant.
        It is an
        "eligible contract participant" as defined in section 1a(12) of the U.S.
        Commodity Exchange Act.

       

      (vii)
        Individual
        Negotiation.
        This
        Agreement and each Transaction hereunder is subject to individual negotiation
        by
        the parties.

       

      (viii)
        Relationship
        between Party A and Party B.
        Subject
        as provided in Part 5(g), each of Party A and Party B will be deemed to
        represent to the other on the date on which it enters into a Transaction
        or an
        amendment thereof that (absent a written agreement between Party A and Party
        B
        that expressly imposes affirmative obligations to the contrary for that
        Transaction):

       

      (1) Principal.
        It is
        acting as principal and not as agent when entering into this Agreement and
        each
        Transaction. 

       

      (2) Non-Reliance.
        It
        is
        acting for its own account and it has made its own independent decisions
        to
        enter into that Transaction and as to whether that Transaction is appropriate
        or
        proper for it based upon its own judgment and upon advice from such advisors
        as
        it has deemed necessary. It is not relying on any communication (written
        or
        oral) of the other party as investment advice or as a recommendation to enter
        into that Transaction; it being understood that information and explanations
        related to the terms and conditions of a Transaction shall not be considered
        investment advice or a recommendation to enter into that Transaction. No
        communication (written or oral) received from the other party shall be deemed
        to
        be an assurance or guarantee as to the expected results of that
        Transaction.

       

      (3) Evaluation
        and Understanding. It
        is
        capable of evaluating and understanding (on its own behalf or through
        independent professional advice), and understands and accepts, the terms,
        conditions and risks of this Agreement and each Transaction hereunder. It
        is
        also capable of assuming, and assumes, all financial and other risks of this
        Agreement and each Transaction hereunder. 

       

      (4) Status
        of Parties. The
        other
        party is not acting as a fiduciary or an advisor for it in respect of that
        Transaction. 

       

      
        	
                (d)

              	
                Section
                  4 is hereby amended by adding the following new agreement:
                  

              

      

       

      (f)
        Actions
        Affecting Representations. Party
        B
        agrees not to take any action during the term of this Agreement or any
        Transaction hereunder that renders or could render any of the representations
        and warranties in this Agreement untrue, incorrect, or incomplete, and if
        any
        event or condition occurs that renders or could render any such representation
        untrue, incorrect, or incomplete, Party B will immediately give written notice
        thereof to Party A.

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

      
        	
                (e)

              	
                Section
                  1(c). For
                  purposes of Section 1(c) of the Agreement, this Transaction shall
                  be the
                  sole Transaction under the Agreement.

              

      

       

      
        	
                (f)

              	
                Trustee
                  Administrator Capacity. It
                  is expressly understood and agreed by the parties hereto that (i)
                  this
                  Agreement is executed and delivered by HSBC Bank USA, National
                  Association, not individually, but solely as Supplemental Interest
                  Trust
                  Trustee on behalf of the Supplemental Interest Trust with respect
                  to the
                  ACE Securities Corp. Home Equity Loan Trust, Series 2006-NC2 Asset
                  Backed
                  Pass Through Certificates, in the exercise of the powers and authority
                  conferred and vested in it under the Pooling and Servicing Agreement,
                  (ii)
                  each of the representations, undertakings and agreements herein
                  made on
                  the part of Supplemental Interest Trust is made and intended not
                  as
                  personal representations, undertakings and agreements by HSBC
                  Bank USA, National Association, but is made and intended for the
                  purpose
                  of binding only the Supplemental Interest Trust, (iii) nothing
                  herein
                  contained shall be construed as creating any liability on the part
                  of
                  HSBC
                  Bank USA, National Association individually or personally, to perform
                  any
                  covenant either expressed or implied contained herein, all such
                  liability,
                  if any, being expressly waived by the parties hereto and by any
                  Person
                  claiming by, through or under the parties hereto and (iv) under
                  no
                  circumstances shall HSBC
                  Bank USA, National Association be personally liable for the payment
                  of any
                  indebtedness or expenses of the Supplemental Interest Trust or
                  be liable
                  for the breach or failure of any obligation, representation, warranty
                  or
                  covenant made or undertaken by Party B under this Agreement or
                  any other
                  related documents.

              

      

       

      
        	
                (h)

              	
                Proceedings.
                  Without impairing any right afforded to it under the Pooling and
                  Servicing
                  Agreement as a third party beneficiary, Party A shall not institute
                  against or cause any other person to institute against, or join
                  any other
                  person in instituting against the Depositor, Party B, or the trust
                  created
                  pursuant to the Pooling and Servicing Agreement, any bankruptcy,
                  reorganization, arrangement, insolvency or liquidation proceedings,
                  or
                  other proceedings under any federal or state bankruptcy, dissolution
                  or
                  similar law, for a period of one year and one day, or
                  if longer the applicable preference period then in effect,
                  following indefeasible payment in full of the Certificates and
                  any Notes.
                  Nothing
                  shall preclude, or be deemed to stop, Party A (i) from taking any
                  action
                  prior to the expiration of the aforementioned one year and one
                  day period,
                  or if longer the applicable preference period then in effect, in
                  (A) any
                  case or proceeding voluntarily filed or commenced by Party B or
                  (B) any
                  involuntary insolvency proceeding filed or commenced by a Person
                  other
                  than Party A, or (ii) from commencing against Party B any legal
                  action
                  which is not a bankruptcy, reorganization, arrangement, insolvency,
                  moratorium, liquidation or similar proceeding.

              

      

       

      
        	
                (i)

              	
                Change
                  of Account.
                  Section 2(b) of this Agreement is hereby amended by the addition
                  of the
                  following after the word "delivery" in the first line
                  thereof:-

              

      

       

      "to
        another account in the same legal and tax jurisdiction as the original
        account"

      

      
        	
                (j)

              	
                Pooling
                  and Servicing Agreement.

              

      

       

      Party
        B
        shall not enter into any amendment to Section of the Pooling and Servicing
        Agreement which would have a material and adverse effect to the rights and/or
        obligations of Party A without the prior written consent of the Party
        A.

      

      
        	
                (k)

              	
                Set-off.
                  Notwithstanding
                  any provision of this Agreement or any other existing or future
                  agreements, each of Party A and Party B irrevocably waives as to
                  itself
                  any and all contractual rights it may have to set off, net, recoup
                  or
                  otherwise withhold or suspend or condition its payment or performance
                  of
                  any obligation to the other party under this Agreement against
                  any
                  obligation of one party hereto to the other party hereto arising
                  outside
                  of this Agreement (which Agreement includes without limitation,
                  the Master
                  Agreement to which this Schedule is attached, this Schedule and
                  the
                  Confirmation). The provisions for set-off set forth in Section
                  6(e) of
                  this Agreement shall not apply for purposes of this
                  Transaction.

              

      

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

      
        	(l)	
                Notice
                  of Certain Events or Circumstances.
                  Each party agrees, upon learning of the occurrence or existence
                  of any
                  event or condition that constitutes (or that with the giving of
                  notice or
                  passage of time or both would constitute) an Event of Default or
                  Termination Event with respect to such party, promptly to give
                  the other
                  party notice of such event or condition (or, in lieu of giving
                  notice of
                  such event or condition in the case of an event or condition that
                  with the
                  giving of notice or passage of time or both would constitute an
                  Event of
                  Default or Termination Event with respect to the party, to cause
                  such
                  event or condition to cease to exist before becoming an Event of
                  Default
                  or Termination Event); provided
                  that failure to provide notice of such event or condition pursuant
                  to this
                  Part 5(l) shall not constitute an Event of Default or a Termination
                  Event.

              

      

       

      
        	(m)	
                Regarding
                  Party A.
                  Party
                  B acknowledges and agrees that Party A has had and will have no
                  involvement in and, accordingly Party A accepts no responsibility
                  for: (i)
                  the establishment, structure, or choice of assets of Party B; (ii)
                  the
                  selection of any person
                  performing services for or acting on behalf of Party B; (iii) the
                  selection of Party A as the Counterparty;
                  (iv) the terms of the Certificates; (v) the preparation of or passing
                  on
                  the disclosure and other information contained in any offering
                  circular
                  for the Certificates, the Pooling and Servicing Agreement, or any
                  other
                  agreements or documents used by Party B or any other party in connection
                  with the marketing and sale of the Certificates other than disclosure
                  relating to it included in the Prospectus Supplement; (vi) the
                  ongoing
                  operations and administration of Party B, including the furnishing
                  of any
                  information to Party B which is not specifically required under
                  this
                  Agreement; or (vii) any other aspect of Party B’s
                  existence.

              

      

       

      
        	(n)	
                Amendments.
                  This Agreement will not be amended unless Party B shall have received
                  prior written confirmation from each of the Rating Agencies that
                  such
                  amendment will not cause such Rating Agency to downgrade or withdraw
                  its
                  then-current ratings of any outstanding Certificates
                  or Notes. 

              

      

       

      
        	
                (o)

              	
                Gross-up.
                  Section 2(d)(i)(4) shall only apply in the event Party A is “X” and Party
                  B is “Y” thereunder.

              

      

       

      
        	
                (p)

              	
                Non-Recourse.
                  Notwithstanding any provision herein to the contrary, the obligations
                  of
                  Party B hereunder are limited recourse obligations of Party B,
                  payable
                  solely from the Supplemental Interest Trust and the proceeds thereof,
                  in
                  accordance with the terms of the Pooling and Servicing Agreement.
                  In the
                  event that the Supplemental Interest Trust and proceeds thereof
                  should be
                  insufficient to satisfy all claims outstanding and following the
                  realization of the Supplemental Interest Trust and the proceeds
                  thereof,
                  any claims against or obligations of Party B under this Agreement
                  still
                  outstanding shall be extinguished and thereafter not revive. Party
                  B shall
                  not have liability for any failure or delay in making a payment
                  hereunder
                  to Party A due to any failure or delay in receiving amount in the
                  Supplemental Interest Trust from the trust created pursuant to
                  the Pooling
                  and Servicing Agreement.

              

      

       

      
        	
                (q)

              	
                Transfer.
                  Section 7 is hereby amended by adding in the third line thereof
                  after the
                  clause "that: -" the words "provided
                  that the Rating Agency Condition is
                  satisfied."

              

      

       

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

      
        	
                (r)

              	
                Compliance
                  with Regulation AB.
                  (i)
                  For purposes of Item 1115 of Subpart 229.1100 - Asset Backed Securities
                  (Regulation AB) (17 C.F.R. ss.ss.229.1100 - 229.1123) (“Regulation AB”)
                  under the Securities Act of 1933, as amended, and the Securities
                  Exchange
                  Act of 1934, as amended (the “Exchange Act”), as amended and interpreted
                  by the Securities and Exchange Commission and its staff, if the
                  Depositor
                  or Party B makes a determination, acting reasonably and in good
                  faith,
                  that (x) the applicable “significance percentage” with respect to this
                  Agreement has been reached, and (y) it has a reporting obligation
                  under
                  the Exchange Act, then Party A shall, within ten (10) calendar
                  days after
                  notice to that effect, at its sole expense, take one of the following
                  actions (each subject to satisfaction of the Rating Agency Condition):
                  (1)
                  provide (including, if permitted by Regulation AB, provision by
                  reference
                  to reports filed pursuant to the Exchange Act or otherwise publicly
                  available information): (A) the financial data required by Item
                  301 of
                  Regulation S-K (17 C.F.R. §229.301), pursuant to Item 1115(b)(1); (B)
                  financial statements meeting the requirements of Regulation S-X
                  (17 C.F.R.
                  §§210.1-01 through 210.12-29, but excluding 17 C.F.R. ss. 210.3-05
                  and
                  Article 11 of Regulation S-X (17 C.F.R. ss. ss. 210.11-01 through
                  210.11-03)), pursuant to Item 1115(b)(2); or (C) such other financial
                  information as may at the time be required or permitted to be provided
                  in
                  satisfaction of the requirements of Item 1115(b), together with
                  accountants consents and/or a procedure letter relating thereto;
                  or (2)
                  secure another entity able to comply with the requirements of Item
                  1115(b)
                  of Regulation AB to replace Party A as party to this Agreement,
                  on
                  substantially similar terms, the debt rating of which entity (or
                  credit
                  support provider therefor) meets or exceeds the applicable requirements
                  of
                  the applicable Rating Agencies.

              

      

      

      (ii) For
        so
        long as the aggregate significance percentage is 10% or more, Party A shall
        provide any updates to the information provided pursuant to clause (i)(1)
        above
        to the Depositor within five (5) Business Days following availability thereof
        (but in no event more than 45 days after the end of each of Party’s fiscal
        quarter for any quarterly update, and in no event more than 90 days after
        the
        end of each of Party A’s fiscal year for any annual update).

      

      (iii)
        All
        information provided pursuant to clauses (i)(1) and (ii) shall be in a form
        suitable for conversion to the format required for filing by the Deposition
        with
        the Commission via the Electronic Data Gathering and Retrieval System (EDGAR).
        In addition, any such information, if audited, shall be accompanied by any
        necessary auditor’s consents or, if such information is unaudited, shall be
        accompanied by an appropriate agreed-upon procedures letter from Party A’s
        accountants. If permitted by Regulation AB, any such information may be provided
        by reference to or incorporation by reference from reports filed pursuant
        to the
        Exchange Act.

      

      
        	
                (s)

              	
                Third
                  Party Beneficiary. The
                  Depositor shall be an express third party beneficiary of this Agreement
                  as
                  if a party hereto to the extent of the Depositor’s rights explicitly
                  specified herein.

              

      

      

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF,
        the
        parties have executed this document by their duly authorized officers with
        effect from the date so specified on the first page hereof.

       

      

      
        	
                SWISS
                  RE FINANCIAL PRODUCTS CORPORATION

              	
                and

              	
                HSBC
                  Bank USA, National Association, not individually, but solely as
                  Supplemental Interest Trust Trustee on behalf of the Supplemental
                  Interest
                  Trust with respect to the ACE Securities Corp. Home Equity Loan
                  Trust,
                  Series 2006-NC2 Asset Backed Pass Through
                  Certificates.

              
	
                ("Party
                  A")

                 

              	 	
                ("Party
                  B")

                 

              
	
                By:
                  ______________________________

                Name:
                  

                Title:
                  

                Date:
                  September 15, 2006

              	 	
                By:
                  ______________________________

                Name:

                Title:

                Date:
                  September 15, 2006

              

      

      

       

       

      

       

      (Signature
        Page for ISDA Schedule - Transaction Reference Number 1055581)

       

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

    

     

    EXHIBIT
      J

     

    CAP
      CONTRACTS

     

    

      SWISS
        RE FINANCIAL PRODUCTS CORPORATION

      55
        East
        52nd
        Street

      New
        York,
        New York 10055

      Fax:
        (917) 322-7201/Phone: (212) 407-7322

      

      
        	
                DATE:

              	
                September
                  15, 2006

              
	 	 
	
                TO:
                  

              	
                HSBC
                  Bank USA, National Association, not individually, but solely as
                  Supplemental Interest Trust Trustee on behalf of the Supplemental
                  Interest
                  Trust with respect to the ACE Securities Corp. Home Equity Loan
                  Trust,
                  Series 2006-NC2 Asset Backed Pass Through Certificates

              
	 	
                (“Party
                  B”)

              
	 	
                452
                  Fifth Avenue

              
	 	
                New
                  York, NY 10018

              
	 	
                Attention:
                  Corporate Trust, ACE Securities Corp., Home Equity Loan Trust,
                  Series
                  2006-NC2

              
	 	
                Tel:
                  212-525-1343

              
	 	
                Fax:
                  212-525-1300

              
	 	 
	 	
                With
                  a copy to:

              
	 	 
	 	
                Wells
                  Fargo Bank, National Association

              
	 	
                9062
                  Old Annapolis Road

              
	 	
                Columbia,
                  Maryland 21045

              
	 	
                Attn:
                  ACE 2006-NC2; Client Manager

              
	 	
                Fax:
                  410-715-2380

              
	 	 
	
                FROM:

              	
                Swiss
                  Re Financial Products Corporation (“Party A”)

              
	 	
                55
                  East 52nd
                  Street

              
	 	
                New
                  York, NY 10055

              
	 	
                Tel:
                  212-407-7322

              
	 	
                Fax:
                  917-322-7201

              

      

      

      Our
        Reference Number: 1055750

      

      Dear
        Sir/Madam:

      

      The
        purpose of this letter agreement (this “Confirmation”) is to confirm the terms
        and conditions of the Transaction entered into between us on the Trade Date
        specified below (the “Transaction”). 

       

      The
        definitions and provisions contained in the 2000 ISDA Definitions as published
        by the International Swaps and Derivatives Association, Inc. are incorporated
        into this Confirmation. In the event of any inconsistency between those
        definitions and provisions and this Confirmation, this Confirmation will
        govern.

       

      
        
          Ref:
            1055750

          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      This
        Confirmation constitutes a “Confirmation” as referred to in, and supplements,
        forms part of and is subject to, the ISDA Master Agreement dated as of September
        15, 2006, as amended and supplemented from time to time (the “Agreement”)
        between Party A and Party B. All provisions contained in the Agreement govern
        this Confirmation except as expressly modified below. 

      

      2. The
        terms
        of the particular Transaction to which this Confirmation relates are as
        follows:

      

      
        	
                Notional
                  Amount:

              	
                With
                  respect to any Calculation Period, the lesser of (i) the amount
                  set forth
                  in the Amortization Schedule, Schedule A and (ii) the aggregate
                  Certificate Principal Balance of the Class A-2, Mezzanine and Class
                  CE
                  Certificates immediately preceding the Distribution Date which
                  occurs in
                  the calendar month of the Floating Rate Payer Payment Date for
                  such
                  Calculation Period (determined for this purpose without regard
                  to any
                  adjustment of the Floating Rate Payer Payment Date or Distribution
                  Date
                  relating to business days)

              
	 	 
	
                Trade
                  Date:

              	
                August
                  17, 2006

              
	 	 
	
                Effective
                  Date:

              	
                September
                  15, 2006

              
	 	 
	
                Termination
                  Date:

              	
                March
                  25, 2007, subject to adjustment in accordance with the Following
                  Business
                  Day Convention.

              
	 	 
	
                Fixed
                  Amounts:

              	 
	 	 
	
                Fixed
                  Rate Payer:

              	
                Party
                  B

              
	 	 
	
                Fixed
                  Amount:

              	
                N/A

              
	 	 
	
                Floating
                  Amounts:

              	 
	 	 
	
                Floating
                  Rate Payer:

              	
                Party
                  A

              
	 	 
	
                Cap
                  Rate:

              	
                7.50%

              
	 	 
	
                Floating
                  Rate Payer Payment Dates:

              	
                The
                  25th day of each month of each year, commencing on October 25,
                  2006
                  subject to adjustment in accordance with the Following Business
                  Day
                  Convention.

              

      

       

      
        
          Ref:
            1055750

          
          

        

        
          2

          
            

          

        

        
          
          

        

      

      
        	
                Floating
                  Rate Option:

              	
                USD-LIBOR-BBA

              
	 	 
	
                Designated
                  Maturity:

              	
                One
                  month

              
	 	 
	
                Spread:

              	
                None

              
	 	 
	
                Floating
                  Rate Day Count Fraction:

              	
                Actual/360

              
	 	 
	
                Reset
                  Dates:

              	
                First
                  day of each Calculation Period

              
	 	 
	
                Business
                  Days for payment:

              	
                New
                  York 

              
	 	 
	
                Calculation
                  Agent:

              	
                Party
                  A

              
	 
	
                3.
                  Recording
                  of Conversations

                 

                Each
                  party (i) consents to the recording of the telephone conversations
                  of
                  trading and marketing personnel of the parties, (ii) agrees to
                  obtain any
                  necessary consent of, and give notice of such recording to, such
                  personnel
                  of it, and (iii) agrees that recordings may be submitted in evidence
                  in
                  any proceedings relating to this Agreement or any potential
                  Transaction.

                 

              
	
                4.
                  Account
                  Details:

              	 
	 	 
	
                Account
                  for payments to Party A:

              	
                JPMorgan
                  Chase Bank

                SWIFT:
                  CHASUS33

                Account
                  of: Swiss Re Financial Products

                Account
                  No.: 066-911184 

              
	 	 
	
                Account
                  for payments to Party B:

              	
                Wells
                  Fargo Bank, NA

                ABA#
                  12100248

                Account
                  Name: SAS Clearing Account

                Account
                  No.: 3970771416

                FFC:
                  50945601, ACE 06-NC2

                Group
                  I Cap Reserve Fund 

              

      

       

      
        	
                5.
                  Offices:

              	 
	 	 
	
                The
                  Office of Party A for this Transaction is:

              	
                New
                  York, NY

              
	 	 
	
                The
                  Office of Party B for this Transaction is:

              	
                New
                  York, NY

                 

              

      

       

      
        
          Ref:
            1055750

          
          

        

        
          3

          
            

          

        

        
          
          

        

      

      Please
        confirm that the foregoing correctly sets forth the terms and conditions
        of our
        agreement by responding within three (3) Business Days by returning via
        telecopier an executed copy of this Confirmation to the attention of Derivative
        Operations fax no. (917)
        322-7201.

      

      Failure
        to respond within such period shall not affect the validity or enforceability
        of
        this Transaction, and shall be deemed to be an affirmation of the terms and
        conditions contained herein, absent manifest error.

       

      
        	Swiss
                Re Financial Products Corporation	 	Accepted
                and confirmed as of the date first written:HSBC
                Bank USA, National Association, not individually, but solely as
                Supplemental Interest Trust Trustee on behalf of the Supplemental
                Interest
                Trust with respect to the ACE Securities Corp. Home Equity Loan Trust,
                Series 2006-NC2 Asset Backed Pass Through
                Certificates
	 	 	 	 	 
	By:	 	 	By:	 
	
                 

                Name:
                      

              	 	 	
                 

                Name:

              	 
	
                 

                Title:
                       

              	 	 	
                 

                Title:

              	 

      

      

      
        
          Ref:
            1055750

          
          

        

        
          4

          
            

          

        

        
          
          

        

      

      SCHEDULE
        A to
        the
        Confirmation dated as of September 15, 2006

      Re:
        Reference Number 1055750

      

      Between
        Swiss Re Financial Products Corporation and HSBC Bank USA, National Association,
        as Trustee, pursuant to the Pooling and Servicing Agreement, dated as of
        September 1, 2006, among Ace Securities Corp., as Depositor; Countrywide
        Home
        Loans Servicing LP, as a servicer; Wells Fargo Bank, National Association,
        as a
        Master Servicer, and Securities Administrator and the Trustee.

      

      Amortization
        Schedule, subject
        to adjustment in accordance with the Following Business Day
        Convention

      

      
        	
                From
                  and including

              	
                To
                  but excluding

              	
                Notional
                  Amount (USD)

              
	
                September
                  15, 2006

              	
                October
                  25, 2006

              	
                483,881,121.00

              
	
                October
                  25, 2006

              	
                November
                  27, 2006

              	
                478,898,207.00

              
	
                November
                  27, 2006

              	
                December
                  26, 2006

              	
                473,082,611.00

              
	
                December
                  26, 2006

              	
                January
                  25, 2007

              	
                466,446,090.00

              
	
                January
                  25, 2007

              	
                February
                  26, 2007

              	
                459,004,800.00

              
	
                February
                  26, 2007

              	
                March
                  26, 2007

              	
                450,779,311.00

              

      

      

      
        
          Ref:
            1055750

          
          

        

        
          5

          
            

          

        

        
          
          

        

      

      
        (Multicurrency—Cross
          Border)

        ISDA®

        International
          Swap and Derivatives Association, Inc.

         

        MASTER
          AGREEMENT

        

        dated
          as
          of September 15, 2006

        

        and
          governing solely the Transactions with Reference Numbers 1055739 and
          1055750

        

        
          	
                  SWISS
                    RE FINANCIAL PRODUCTS CORPORATION

                	
                  and

                	
                  HSBC
                    Bank USA, National Association, not individually, but solely
                    as
                    Supplemental Interest Trust Trustee on behalf of the Supplemental
                    Interest
                    Trust with respect to the ACE Securities Corp. Home Equity Loan
                    Trust,
                    Series 2006-NC2 Asset Backed Pass Through
                    Certificates.

                
	 	 	 
	("Party
                  A")	 	("Party
                  B")

        

         

        
          	
                  have
                    entered and/or anticipate entering into one or more transactions
                    (each a
                    “Transaction”) that are or will be governed by this Master
                    Agreement, which includes the schedule (the “Schedule”),
                    and the documents and other confirming evidence (each
                    a “Confirmation”) exchanged between the parties confirming those
                    Transactions. 

                
	
                   

                  Accordingly,
                    the parties agree as follows:—

                
	
                   

                  1. Interpretation

                
	 
	
                  (a) Definitions.
                    The
                    terms defined in Section 14 and in the Schedule will have
                    the meanings therein specified for the purpose of this
                    Master Agreement.

                
	
                   

                  (b) Inconsistency.
                    In
                    the event of any inconsistency between the provisions of
                    the Schedule and the
                    other provisions of this Master Agreement, the Schedule
                    will prevail. In the event of any inconsistency
                    between the provisions of any Confirmation and this Master
                    Agreement (including the Schedule), such
                    Confirmation will prevail for the purpose of
                    the relevant Transaction.

                
	
                   

                  (c) Single
                    Agreement. All
                    Transactions are entered into in reliance on the
                    fact that this Master Agreement and all
                    Confirmations form a single agreement between the parties
                    (collectively referred to as
                    this “Agreement”), and the parties would not otherwise enter
                    into any Transactions.

                
	
                   

                  2. Obligations

                
	
                   

                  (a) General
                    Conditions.

                
	
                   

                  (i) Each
                    party will make each payment or delivery specified in each Confirmation
                    to be made by it, subject to the other provisions
                    of this Agreement.

                
	
                   

                  (ii) Payments
                    under this Agreement will be made on the due date for value on
                    that
                    date in the place
                    of the account specified in the relevant Confirmation or
                    otherwise pursuant to this Agreement, in
                    freely transferable funds and in the manner customary for
                    payments in the required currency. Where
                    settlement is by delivery (that is, other than by payment), such
                    delivery will be made for receipt on the due date in
                    the manner customary for the relevant obligation unless
                    otherwise specified in the
                    relevant Confirmation or elsewhere in this
                    Agreement.

                
	
                   

                  (iii) Each
                    obligation of each party under Section 2(a)(i) is subject to
                    (1)
                    the condition precedent that no Event of Default
                    or Potential Event of Default with respect to the other
                    party has occurred and is continuing, (2) the
                    condition precedent that no Early Termination Date
                    in respect of the relevant Transaction has
                    occurred or been effectively designated and (3)
                    each other applicable condition precedent specified in
                    this Agreement.

                

        

         

        Copyright
          © 1992 by International Swap and Derivatives Association, Inc.

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        
          	
                  (b) Change
                    of Account. Either
                    party may change its account for receiving a payment
                    or delivery by giving notice to the other party at
                    least five Local Business Days prior to the scheduled date for
                    the payment or delivery to which such change applies unless
                    such other party gives timely notice of a reasonable objection
                    to such change.

                
	
                   

                  (c) Netting.
                    If
                    on any date amounts would otherwise be payable:—

                
	
                   

                  (i) in
                    the same currency; and

                
	
                   

                  (ii) in
                    respect of the same Transaction,

                
	
                   

                  by
                    each party to the other, then, on such date, each party's obligation
                    to
                    make payment of any such amount will be automatically
                    satisfied and discharged and, if the aggregate amount that would
                    otherwise have been
                    payable by one party exceeds the aggregate amount that would
                    otherwise
                    have been payable by the other party, replaced by an
                    obligation upon the party by whom the larger aggregate amount
                    would have been payable to pay
                    to the other party the excess of the larger aggregate amount
                    over the
                    smaller aggregate amount.

                
	
                   

                  The
                    parties may elect in respect of two or more Transactions that
                    a net amount
                    will be determined in respect of all amounts
                    payable on the same date in the same currency in respect of such
                    Transactions, regardless of
                    whether such amounts are payable in respect of the same
                    Transaction. The election may be made in the
                    Schedule or a Confirmation by specifying that subparagraph (ii)
                    above will not apply to the Transactions identified as being
                    subject to the election, together with the starting date (in
                    which case
                    subparagraph (ii) above will not, or will cease to, apply
                    to such Transactions from such date). This election may be made
                    separately for different groups of Transactions and will apply
                    separately to each pairing of Offices through
                    which the parties make and receive payments or
                    deliveries.

                
	
                   

                  (d) Deduction
                    or Withholding for Tax.

                
	
                   

                  (i) Gross-Up.
                    All
                    payments under this Agreement will be made without
                    any deduction or withholding for or on account of any Tax
                    unless such deduction or withholding is required by any
                    applicable law, as modified by the practice of any relevant
                    governmental revenue
                    authority, then in
                    effect. If a party is so required to deduct or withhold, then
                    that party
                    (“X”) will:—

                
	
                   

                  (1) promptly
                    notify the other party (“Y”) of such requirement;

                
	
                   

                  (2) pay
                    to the relevant authorities the full amount required to be
                    deducted or withheld (including the full amount
                    required to be deducted or withheld from any additional amount
                    paid by X to Y under this Section 2(d)) promptly upon the earlier
                    of
                    determining that such deduction or withholding is
                    required or receiving notice that such amount has been assessed
                    against Y;

                
	
                   

                  (3) promptly
                    forward to Y an official receipt (or a certified copy), or
                    other documentation reasonably acceptable to Y, evidencing such
                    payment to such authorities; and

                
	
                   

                  (4) if
                    such Tax is an Indemnifiable Tax, pay to Y, in addition to the
                    payment
                    to which Y is otherwise entitled under this
                    Agreement, such additional amount as is necessary
                    to ensure that the net amount
                    actually received by Y (free and clear of Indemnifiable Taxes,
                    whether assessed
                    against X or Y) will equal the full amount Y would have received
                    had no such deduction or withholding been required.
                    However, X will not be required to pay any additional amount to
                    Y to the extent that it would not be required to be paid but
                    for:—

                
	
                   

                  (A) the
                    failure by Y to comply with or perform any
                    agreement contained in Section 4(a)(i), 4(a)(iii) or
                    4(d); or

                
	
                   

                  (B) the
                    failure of a representation made by Y pursuant to Section 3(f)
                    to
                    be accurate and true unless such failure would not
                    have occurred but for (I) any action taken by a taxing
                    authority, or brought in a court of competent jurisdiction, on or
                    after the date on which a Transaction is entered into
                    (regardless of whether such action is taken or brought with
                    respect to a party to this Agreement) or (II) a Change in Tax
                    Law.

                

        

         

        
          
            
            

          

          
            2

            
              

            

          

          
            
            

          

        

        
          	
                   

                  (ii) Liability.
                    If:—

                
	
                   

                  (1) X
                    is required by any applicable law, as modified by the practice
                    of
                    any relevant governmental revenue authority, to make any
                    deduction
                    or withholding in respect of which X
                    would not be required to pay an additional amount to Y under
                    Section 2(d)(i)(4);

                
	
                   

                  (2) X
                    does not so deduct or withhold; and

                
	
                   

                  (3) a
                    liability resulting from such Tax is assessed directly against
                    X,

                
	
                   

                  then,
                    except to the extent Y has satisfied or then satisfies the liability
                    resulting from such Tax, Y will promptly pay to X the
                    amount of such liability (including any related liability
                    for interest, but including any related liability for
                    penalties only if Y has failed to comply with or perform any
                    agreement contained in Section 4(a)(i), 4(a)(iii) or
                    4(d)).

                
	
                   

                  (e) Default
                    Interest; Other Amounts. Prior
                    to the occurrence or effective designation of an Early
                    Termination Date in respect of the relevant Transaction, a party that
                    defaults in the performance of any payment obligation
                    will, to the extent permitted by law and subject to
                    Section 6(c), be required to pay interest
                    (before as well
                    as after judgment) on the overdue amount to the other party on
                    demand in
                    the same currency
                    as such overdue amount, for the period from (and including) the
                    original due date for payment to (but excluding) the date
                    of actual payment, at the Default Rate. Such interest will be
                    calculated
                    on the basis of daily compounding
                    and the actual number of days elapsed. If, prior to the occurrence
                    or
                    effective designation
                    of an Early Termination Date in respect of the relevant
                    Transaction, a party defaults in the performance of
                    any obligation required to be settled by delivery, it will
                    compensate
                    the other party on demand
                    if
                    and to the extent provided for in the relevant Confirmation
                    or elsewhere in this Agreement.

                
	
                   

                  3. Representations

                
	
                   

                  Each
                    party represents to the other party (which representations will
                    be
                    deemed to be repeated
                    by each party on each date on which a Transaction is
                    entered into and, in the
                    case of the representations
                    in
                    Section 3(f), at all times until the termination of
                    this Agreement) that:—

                
	
                   

                  (a) Basic
                    Representations.

                
	
                   

                  (i) Status.
                    It
                    is duly organised and validly existing under the laws of the
                    jurisdiction of its organisation or incorporation and, if
                    relevant under such laws, in good standing;

                
	
                   

                  (ii) Powers.
                    It
                    has the power to execute this Agreement and any other
                    documentation relating to this Agreement to which it is a
                    party, to
                    deliver this Agreement and any other
                    documentation relating to this Agreement that it is
                    required by this Agreement to deliver and to perform its obligations
                    under this Agreement and any obligations it has under any Credit
                    Support Document to which it is a party and has taken
                    all necessary action to authorise such execution, delivery and
                    performance;

                
	
                   

                  (iii) No
                    Violation or Conflict.
                    Such
                    execution, delivery and
                    performance do not
                    violate or  conflict with any law applicable to it,
                    any provision of its constitutional documents, any order or judgment
                    of any court or other agency of government applicable to it or
                    any of its assets or any contractual restriction binding on
                    or affecting it or any of its assets;

                
	
                   

                  (iv) Consents.
                    All
                    governmental and other consents that are required to have been
                    obtained by it with respect to this Agreement or any
                    Credit Support Document to which it is a party have been
                    obtained and are in full force and effect and all conditions of any
                    such consents have been complied with; and

                
	
                   

                  (v) Obligations
                    Binding. Its
                    obligations under
                    this Agreement and any
                    Credit Support Document to which it is a party
                    constitute its legal, valid and binding obligations,
                    enforceable in accordance with their respective terms
                    (subject to applicable bankruptcy, reorganisation, insolvency,
                    moratorium or similar laws affecting creditors' rights generally
                    and subject, as to enforceability, to equitable principles of
                    general application (regardless of whether enforcement
                    is sought in a proceeding in equity or at
                    law)).

                

        

         

        
          
            
            

          

          
            3

            
              

            

          

          
            
            

          

        

        
          	
                   

                  (b) Absence
                    of Certain Events. No
                    Event of Default or Potential Event of Default or,
                    to its knowledge, Termination Event
                    with respect to it has occurred
                    and is continuing and
                    no such event
                    or
                    circumstance would occur as a
                    result of its entering into or performing its
                    obligations under this Agreement
                    or
                    any Credit Support Document to which it is a
                    party.

                
	
                   

                  (c) Absence
                    of Litigation.
                    There
                    is not pending or, to its knowledge, threatened against it or
                    any of its Affiliates any action, suit or proceeding
                    at law or in equity or before any court,
                    tribunal, governmental body, agency or official or any
                    arbitrator that is likely to affect the legality, validity or
                    enforceability against it of this Agreement or
                    any Credit Support Document
                    to
                    which it is a party or its ability to perform its obligations
                    under this Agreement or such Credit Support
                    Document.

                
	
                   

                  (d) Accuracy
                    of Specified Information. All
                    applicable information
                    that
                    is
                    furnished in writing by or on behalf of it to the
                    other party and is identified for the purpose of this Section
                    3(d) in the
                    Schedule is, as of the date of the information,
                    true, accurate and complete in every material respect.

                
	
                   

                  (e) Payer
                    Tax Representation. Each
                    representation specified in the Schedule as being made by it for
                    the purpose of this Section 3(e) is accurate and
                    true.

                
	
                   

                  (f) Payee
                    Tax Representations. Each
                    representation specified in the Schedule as being
                    made by it for the purpose of this Section 3(f)
                    is accurate and true.

                
	
                   

                  4. Agreements

                
	
                   

                  Each
                    party agrees with the other that, so long as either party has
                    or may have
                    any obligation under this Agreement or under any
                    Credit Support Document to which it is a party:—

                
	
                   

                  (a) Furnish
                    Specified Information. It
                    will deliver to the other party or, in certain cases under
                    subparagraph (iii) below, to such government or taxing authority
                    as the other party reasonably directs:—

                
	
                   

                  (i) any
                    forms, documents or certificates relating to taxation specified
                    in the
                    Schedule or any Confirmation;

                
	
                   

                  (ii) any
                    other documents specified in the Schedule or any Confirmation;
                    and

                
	
                   

                  (iii) upon
                    reasonable demand by such other party, any form or document that
                    may
                    be required or reasonably requested in writing in order to
                    allow such other party or its Credit Support Provider to
                    make a payment under this Agreement or any applicable Credit
                    Support Document without any deduction or withholding for
                    or on account of any Tax or with such deduction
                    or withholding at a reduced rate (so long as the
                    completion, execution or submission of such form or document would
                    not materially prejudice the legal or commercial position of the
                    party in receipt of such demand), with any such form or
                    document to be accurate and completed in a manner
                    reasonably satisfactory to such other party and to be
                    executed
                    and to be delivered with any
                    reasonably required certification,

                
	
                   

                  in
                    each case by the date specified in the Schedule or such Confirmation
                    or,
                    if none is specified, as soon as
                    reasonably practicable.

                
	
                   

                  (b) Maintain
                    Authorisations. It will
                    use all reasonable efforts to maintain in full force
                    and effect all consents of any governmental or other
                    authority that are required to be obtained by it with
                    respect to this Agreement or any
                    Credit Support Document to which
                    it is a party and will use
                    all reasonable efforts to obtain any that may become
                    necessary in the future.

                
	
                   

                  (c) Comply
                    with Laws. It
                    will comply in all material respects with all applicable laws
                    and orders to which it may
                    be subject if failure
                    so
                    to comply would materially impair its ability to perform
                    its obligations under this Agreement or any Credit Support
                    Document to which it is a party.

                
	
                   

                  (d) Tax
                    Agreement. It
                    will give notice of any failure of a representation made by it
                    under Section 3(f) to be accurate and true promptly
                    upon learning of such failure.

                
	
                   

                  (e) Payment
                    of Stamp Tax. Subject
                    to Section 11, it will pay any Stamp Tax levied or imposed upon
                    it or in respect
                    of its execution or performance
                    of
                    this Agreement by
                    a jurisdiction in which it is incorporated,
                    organised,
                    managed and controlled, or considered to have its seat, or in
                    which a
                    branch or office through which it is
                    acting for the purpose of this Agreement is located
                    (“Stamp Tax Jurisdiction”) and will indemnify the other party
                    against any Stamp Tax levied or imposed upon
                    the other party or in respect of the other party's execution or performance
                    of this Agreement by any such
                    Stamp Tax Jurisdiction which is not also a Stamp
                    Tax Jurisdiction with respect to the other
                    party.

                

        

         

        
          
            
            

          

          
            4

            
              

            

          

          
            
            

          

        

        
          	
                   

                  5. Events
                    of Default and Termination Events

                
	
                   

                  (a) Events
                    of Default. The
                    occurrence at any time with respect to a party or, if
                    applicable, any Credit Support Provider of
                    such party or any Specified
                    Entity of such party of any of the following events constitutes
                    an event of default (an “Event of Default”) with respect to such
                    party:—

                
	
                   

                  (i) Failure
                    to Pay or Deliver. Failure
                    by the party to make, when due, any payment under this
                    Agreement or delivery under Section 2(a)(i) or 2(e) required to
                    be made by it if such failure is not remedied on or before
                    the third Local Business Day after notice of such failure is
                    given to the
                    party;

                
	
                   

                  (ii) Breach
                    of Agreement. Failure
                    by the party to comply with or perform any agreement or
                    obligation (other than an obligation to make any payment under this
                    Agreement or delivery under Section 2(a)(i) or 2(e) or to
                    give notice of a Termination Event or any
                    agreement or obligation under Section 4(a)(i),
                    4(a)(iii) or 4(d)) to be complied with or performed by the
                    party in accordance with this Agreement if such
                    failure is not remedied on or before the thirtieth day
                    after notice of such failure is given to the
                    party;

                
	
                   

                  (iii) Credit
                    Support Default.

                
	
                   

                  (1) Failure
                    by the party or any Credit Support Provider of such party to
                    comply with or perform any agreement or obligation to
                    be complied with or performed by it in accordance
                    with any Credit Support Document if such failure is continuing
                    after any applicable grace
                    period has elapsed;

                
	
                   

                  (2) the
                    expiration or termination
                    of
                    such Credit Support Document or the failing or ceasing
                    of such Credit
                    Support Document to be in full force and
                    effect for the purpose of this Agreement (in either case
                    other than in accordance with its terms)
                    prior to the satisfaction
                    of all obligations of such party
                    under each Transaction to which
                    such Credit Support Document relates without
                    the written consent of the other party; or

                
	
                   

                  (3) the
                    party or such
                    Credit Support
                    Provider disaffirms, disclaims, repudiates or rejects, in
                    whole or in part, or challenges the validity of, such Credit
                    Support Document;

                
	
                   

                  (iv) Misrepresentation.
                    A
                    representation (other than a representation under
                    Section 3(e) or (f))
                    made or repeated
                    or deemed to have been made or repeated by the party or
                    any Credit Support
                    Provider of such
                    party in this Agreement or any Credit Support Document proves
                    to have been
                    incorrect or misleading
                    in any
                    material respect when made or repeated or deemed to
                    have been made
                    or repeated;

                
	
                   

                  (v) Default
                    under Specified Transaction. The
                    party, any Credit Support Provider of such party or
                    any applicable Specified
                    Entity of such party (1) defaults under a Specified
                    Transaction and, after
                    giving effect
                    to any applicable notice requirement or grace period, there occurs
                    a
                    liquidation of, an
                    acceleration of obligations
                    under, or an
                    early termination of, that Specified Transaction, (2) defaults,
                    after giving effect to any applicable notice requirement or
                    grace period, in making any payment or delivery due on
                    the last payment, delivery or exchange date of, or any payment
                    on early termination of, a Specified Transaction (or
                    such default continues for at least three Local
                    Business Days if there is no applicable notice
                    requirement or grace period) or (3) disaffirms,
                    disclaims, repudiates or rejects, in whole or in part,
                    a Specified Transaction (or such action is taken by any
                    person or entity appointed or empowered to operate it
                    or act on its behalf);

                

        

         

        
          
            
            

          

          
            5

            
              

            

          

          
            
            

          

        

        
          	
                   

                  
                    (vi) Cross
                      Default. If
                      “Cross Default” is specified in
                      the Schedule as applying to the party, the occurrence or existence
                      of (1) a default, event of default or other similar condition
                      or
                      event
                      (however described) in respect of such
                      party, any Credit Support Provider of such party
                      or any applicable Specified Entity of such party under
                      one or more agreements or instruments relating to Specified
                      Indebtedness of any of them (individually or collectively) in an
                      aggregate amount of not less than the applicable Threshold
                      Amount (as
                      specified in the Schedule) which has resulted in such Specified
                      Indebtedness becoming, or becoming capable at such time of being
                      declared, due and payable under such agreements or
                      instruments, before it would
                      otherwise have been due and payable or (2) a default
                      by such party, such Credit Support Provider or such Specified
                      Entity (individually or collectively) in making one or
                      more payments on the due date thereof
                      in an aggregate
                      amount of not less than the applicable Threshold Amount
                      under such agreements or instruments (after giving effect to any
                      applicable notice requirement or grace
                      period);

                  

                
	
                   

                  (vii) Bankruptcy.
                    The
                    party, any Credit Support Provider
                    of
                    such party or any applicable Specified Entity of such
                    party:—

                
	
                   

                  (1) is
                    dissolved (other than pursuant to a consolidation, amalgamation
                    or
                    merger); (2) becomes
                    insolvent or is
                    unable to
                    pay its debts or fails or admits in writing
                    its inability generally to pay its debts as they
                    become due; (3) makes a general assignment,
                    arrangement or composition with or for the benefit of
                    its creditors; (4) institutes or has instituted
                    against it a proceeding seeking a judgment of
                    insolvency or bankruptcy or any other relief under
                    any bankruptcy or insolvency law or
                    other similar law affecting
                    creditors' rights, or a petition is presented for its
                    winding-up or liquidation, and, in the case of any such
                    proceeding or petition instituted or
                    presented against it, such proceeding or petition (A) results in
                    a judgment of insolvency or bankruptcy or the entry of
                    an order for relief or the making of an order for its winding-up or
                    liquidation or (B) is
                    not dismissed, discharged, stayed or restrained in each
                    case within 30 days of the institution
                    or presentation thereof; (5) has
                    a resolution
                    passed for its winding-up, official management or
                    liquidation (other than pursuant to a consolidation,
                    amalgamation or merger); (6) seeks or becomes subject
                    to the appointment of an administrator, provisional liquidator,
                    conservator, receiver,
                    trustee, custodian or other similar official
                    for it or for all or substantially all its assets; (7)
                    has a secured party take possession of all or substantially all
                    its
                    assets or has a distress, execution, attachment,
                    sequestration
                    or other legal process
                    levied, enforced or sued on or against all or
                    substantially all its assets and such secured party
                    maintains possession, or any such process
                    is not dismissed, discharged, stayed or restrained, in each
                    case within 30 days thereafter; (8) causes or is subject to
                    any event with respect to it which, under the applicable
                    laws of any jurisdiction, has an analogous effect to any of the
                    events specified in clauses (1) to (7) (inclusive);
                    or (9) takes any action in
                    furtherance of, or indicating its consent to, approval
                    of, or acquiescence in, any of the foregoing acts;
                    or

                
	
                   

                  (viii) Merger
                    Without Assumption. The
                    party or any Credit Support Provider of such party
                    consolidates or amalgamates
                    with, or merges with or into,
                    or transfers all or substantially all its assets
                    to, another entity and, at the time of such consolidation,
                    amalgamation, merger or transfer:—

                
	
                   

                  (1) the
                    resulting, surviving or transferee entity fails
                    to assume all the obligations of such party
                    or such Credit Support Provider under this Agreement or any
                    Credit Support Document to which it or its predecessor
                    was a party by operation of law or pursuant to an agreement
                    reasonably satisfactory to the other party to this Agreement;
                    or

                
	
                   

                  (2) the
                    benefits of any Credit Support Document fail to extend (without
                    the
                    consent of the other party) to the performance by such
                    resulting, surviving or transferee entity of its
                    obligations under this Agreement.

                
	
                   

                  (b) Termination
                    Events. The
                    occurrence at any time with respect to a party or, if
                    applicable, any Credit Support Provider of
                    such party or any Specified
                    Entity of such party of any event specified below constitutes
                    an Illegality if the event is specified in (i) below, a Tax
                    Event if the event is specified in (ii) below or a Tax
                    Event Upon Merger if the event is specified in (iii) below, and,
                    if specified to be
                    applicable, a Credit Event

                

        

        

        
          
            
            

          

          
            6

            
              

            

          

          
            
            

          

        

        
          	
                   

                  Upon
                    Merger if the event is specified pursuant to (iv) below
                    or
                    an Additional Termination Event if the event
                    is specified pursuant to (v) below:—

                
	
                   

                  (i) Illegality.
                    Due
                    to
                    the adoption of, or any change in, any
                    applicable law after the date on which
                    a Transaction is entered into, or due to the promulgation
                    of, or any change in, the interpretation by
                    any court, tribunal or regulatory authority with competent
                    jurisdiction of any applicable law after
                    such date, it becomes unlawful (other than as a result of a
                    breach by the party of Section 4(b)) for
                    such party (which will be the Affected
                    Party):—

                
	
                   

                  (1) to
                    perform any absolute or contingent obligation to make a payment
                    or delivery or to receive a payment or delivery
                    in respect of such Transaction or to comply with any other
                    material provision of this Agreement relating to such Transaction;
                    or

                
	
                   

                  (2) to
                    perform, or for any Credit Support
                    Provider of such
                    party to perform, any contingent
                    or other obligation which the party (or such Credit Support
                    Provider) has under any Credit
                    Support Document relating to such
                    Transaction;

                
	
                   

                  (ii) Tax
                    Event. Due
                    to (x) any action
                    taken by a taxing authority, or brought in a court of competent
                    jurisdiction, on or after the date on which a Transaction
                    is entered into (regardless of whether such
                    action is taken or brought with respect to a party to this
                    Agreement) or (y) a Change in Tax Law,
                    the party (which will be the Affected Party) will, or there is a
                    substantial likelihood that it will, on
                    the next succeeding Scheduled Payment Date (1) be required to
                    pay to the other party an additional amount in respect
                    of an Indemnifiable Tax under Section 2(d)(i)(4) (except
                    in respect of interest under Section 2(e),
                    6(d)(ii) or 6(e)) or (2) receive a payment from which an amount
                    is required to be deducted or withheld for or on
                    account of a Tax (except in respect of interest
                    under Section 2(e), 6(d)(ii) or 6(e)) and no
                    additional amount is required to be paid in respect of
                    such Tax under Section 2(d)(i)(4) (other than by
                    reason of Section 2(d)(i)(4)(A) or (B));

                
	
                   

                  (iii) Tax
                    Event Upon Merger. The
                    party (the “Burdened Party”) on the next succeeding Scheduled
                    Payment Date will
                    either (1) be required to pay an additional
                    amount in respect of an Indemnifiable Tax under Section
                    2(d)(i)(4) (except in respect of interest under Section 2(e),
                    6(d)(ii)
                    or 6(e)) or (2) receive a
                    payment from which an amount has been deducted or withheld for
                    or
                    on account of any Indemnifiable Tax
                    in respect of which the other
                    party is not required to pay an additional amount
                    (other than by reason of Section 2(d)(i)(4)(A) or (B)), in
                    either case as a result of a party
                    consolidating or amalgamating with, or merging with or into, or
                    transferring all or substantially all its assets to,
                    another entity (which will be the Affected Party) where such
                    action
                    does not constitute an event described in Section
                    5(a)(viii);

                
	
                   

                  (iv)  Credit
                    Event Upon Merger. If
                    “Credit Event Upon Merger” is specified in the
                    Schedule as applying
                    to the party,
                    such party (“X”), any Credit Support Provider of X or any applicable
                    Specified Entity of X
                    consolidates or amalgamates
                    with, or merges with or into,
                    or transfers all or substantially all its assets
                    to, another entity and such action does
                    not constitute an event described
                    in
                    Section 5(a)(viii) but the creditworthiness of the
                    resulting, surviving or transferee entity is materially
                    weaker than that of X, such Credit Support
                    Provider or such Specified Entity,
                    as
                    the case may be, immediately prior
                    to such action (and, in such event, X or its successor
                    or transferee, as appropriate, will be the Affected Party);
                    or

                
	
                   

                  (v) Additional
                    Termination Event. If
                    any “Additional Termination Event” is specified in the
                    Schedule or any Confirmation as applying, the occurrence of such
                    event (and, in such event, the Affected Party or
                    Affected Parties shall be as specified for such Additional
                    Termination Event in the Schedule or such
                    Confirmation).

                
	
                   

                  (c) Event
                    of Default and Illegality. If
                    an event or circumstance which would otherwise constitute or
                    give rise to an Event of Default also constitutes an
                    Illegality, it will be treated as an
                    Illegality and will not
                    constitute an Event of
                    Default.

                

        

         

        
          
            
            

          

          
            7

            
              

            

          

          
            
            

          

        

        
          	
                   

                  6. Early
                    Termination

                
	
                   

                  (a) Right
                    to Terminate Following Event of Default. If
                    at any time an Event of Default with respect to
                    a party (the “Defaulting Party”) has occurred and is then
                    continuing, the other party (the “Non-defaulting
                    Party”) may, by
                    not more than 20 days notice to
                    the Defaulting Party specifying the relevant Event of Default,
                    designate a day not earlier than the day such notice is
                    effective as an Early Termination Date in respect of
                    all outstanding Transactions. If, however, “Automatic Early
                    Termination” is specified in the Schedule as
                    applying to a party, then an Early Termination Date in
                    respect of all outstanding Transactions will occur immediately upon the
                    occurrence with respect to such party of an Event
                    of Default specified in Section 5(a)(vii)(l), (3), (5),
                    (6)
                    or, to the extent analogous thereto, (8), and as of
                    the time immediately preceding the institution of the
                    relevant proceeding or the presentation of the
                    relevant petition upon the occurrence with respect
                    to such party of an Event of Default
                    specified in Section 5(a)(vii)(4) or, to the extent
                    analogous thereto, (8).

                
	
                   

                  (b) Right
                    to Terminate Following Termination Event.

                
	
                   

                  (i) Notice.
                    If
                    a Termination Event occurs, an Affected Party will, promptly
                    upon
                    becoming aware of
                    it, notify the other
                    party, specifying the nature of that Termination Event
                    and each Affected Transaction
                    and will also give
                    such other information about
                    that Termination Event as the
                    other party may reasonably
                    require.

                
	
                   

                  (ii) Transfer
                    to Avoid Termination Event. If
                    either an Illegality under Section 5(b)(i)(l) or a Tax
                    Event occurs and there is only one Affected Party, or if a Tax
                    Event Upon Merger occurs and the Burdened Party is the
                    Affected Party, the Affected Party will, as a condition to its
                    right to designate an Early Termination Date under
                    Section 6(b)(iv), use all reasonable efforts (which
                    will not require such party to incur a loss,
                    excluding
                    immaterial, incidental expenses)
                    to transfer within 20 days after it gives notice under
                    Section 6(b)(i) all its rights and obligations under this
                    Agreement in respect of the Affected Transactions
                    to another of its Offices or Affiliates so that
                    such Termination Event
                    ceases to exist.

                
	
                   

                  If
                    the Affected Party is not able to make such a transfer it will
                    give notice
                    to the other party to that effect within such
                    20 day period, whereupon the other party may effect such
                    a transfer within
                    30 days after the notice is given under Section
                    6(b)(i).

                
	
                   

                  Any
                    such transfer by a party under this Section 6(b)(ii) will be
                    subject to
                    and conditional upon the prior written consent of the
                    other party, which consent will not be withheld if
                    such other party's policies in effect at such time
                    would permit it to enter into transactions with
                    the transferee on the
                    terms proposed.

                
	
                   

                  (iii) Two
                    Affected Parties. If
                    an Illegality under Section 5(b)(i)( 1) or
                    a
                    Tax Event occurs and there are two Affected Parties,
                    each party will use
                    all reasonable efforts to reach agreement within 30 days
                    after notice thereof is given under Section 6(b)(i) on action to
                    avoid that Termination Event.

                
	
                   

                  (iv) Right to
                    Terminate. If:—

                
	
                   

                  (1) a
                    transfer under
                    Section 6(b)(ii) or an agreement
                    under Section 6(b)(iii), as the case may
                    be, has not been effected with respect to all Affected
                    Transactions within 30 days after an
                    Affected Party gives notice under Section 6(b)(i);
                    or

                
	
                   

                  (2) an
                    Illegality under Section 5(b)(i)(2), a Credit Event Upon Merger
                    or an Additional Termination Event occurs,
                    or a Tax Event
                    Upon Merger occurs and the Burdened Party is not
                    the Affected Party,

                
	
                   

                  either
                    party in the case of an Illegality, the
                    Burdened Party in the
                    case of a Tax Event Upon Merger,
                    any Affected Party in the case of a Tax Event or an Additional
                    Termination Event if there is more
                    than one Affected Party, or the party which is not the Affected
                    Party in the case of a Credit Event
                    Upon Merger or an Additional Termination Event if there is only
                    one Affected Party may, by not more than 20 days
                    notice to
                    the other party and provided that the relevant
                    Termination Event is then

                

        

        

        
          
            
            

          

          
            8

            
              

            

          

          
            
            

          

        

        
          	
                   

                  continuing,
                    designate a day not earlier than the day such notice is effective
                    as
                    an Early Termination Date in respect of all Affected
                    Transactions.

                
	
                   

                  (c) Effect
                    of Designation.

                
	
                   

                  (i) If
                    notice designating an Early Termination Date is given under Section
                    6(a)
                    or (b), the Early Termination Date will occur on the
                    date so designated, whether or not the
                    relevant Event of Default or Termination Event is
                    then continuing.

                
	
                   

                  (ii) Upon
                    the occurrence or effective designation of an Early
                    Termination Date, no further
                    payments or deliveries under Section 2(a)(i) or 2(e) in respect
                    of the Terminated Transactions will be required to
                    be made, but without prejudice to the
                    other provisions of this Agreement. The amount,
                    if any, payable in
                    respect of an Early Termination Date shall
                    be
                    determined pursuant to Section 6(e).

                
	
                   

                  (d) Calculations.

                
	
                   

                  (i) Statement.
                    On
                    or as soon as reasonably practicable following the
                    occurrence of an Early
                    Termination Date, each
                    party will make the calculations on its
                    part, if any, contemplated by Section 6(e)
                    and will provide to the other party a statement (1) showing, in
                    reasonable detail, such calculations (including all relevant
                    quotations and specifying any amount
                    payable under Section 6(e)) and (2) giving
                    details of the
                    relevant account to which any
                    amount payable to it is to be paid. In the
                    absence of written confirmation from the
                    source of a quotation obtained in determining a Market
                    Quotation, the records of
                    the party obtaining such quotation will be conclusive
                    evidence of the existence and accuracy of such
                    quotation.

                
	
                   

                  (ii) Payment
                    Date. An
                    amount calculated as being due in respect of any
                    Early Termination Date under Section 6(e) will
                    be payable on the day that notice of the amount payable
                    is effective (in the case of an Early
                    Termination Date which is designated or occurs as a result of
                    an Event of Default) and on the day
                    which is two Local Business Days after the day on
                    which notice of the amount payable is effective (in
                    the
                    case of an Early Termination Date which
                    is
                    designated as a result of a Termination
                    Event). Such amount will be paid together with (to the extent
                    permitted under applicable law)
                    interest thereon (before as well
                    as after judgment) in the Termination Currency, from (and including)
                    the relevant Early Termination Date to (but excluding) the date
                    such amount is paid, at the Applicable Rate. Such
                    interest will be calculated on the basis of daily
                    compounding and the actual
                    number of days elapsed.

                
	
                   

                  (e) Payments
                    on Early Termination. If
                    an Early Termination Date
                    occurs, the following provisions shall apply based
                    on the parties' election in the Schedule of a payment measure,
                    either “Market Quotation” or “Loss”, and a
                    payment method, either the “First Method” or the “Second Method”. If the
                    parties fail to designate a payment
                    measure or payment method in the Schedule, it will be
                    deemed that “Market Quotation”
                    or the “Second Method”, as
                    the case may be, shall apply. The amount,
                    if any, payable in respect of an Early
                    Termination Date and determined pursuant to this Section will be
                    subject to any Set-off.

                
	
                   

                  (i) Events
                    of Default. If
                    the Early Termination Date results from an Event of
                    Default:—

                
	
                   

                  (1) First
                    Method and Market Quotation.
                    If
                    the First Method and Market Quotation apply, the
                    Defaulting Party will
                    pay to the Non-defaulting Party the excess, if a positive
                    number, of (A) the
                    sum of the Settlement Amount (determined by the
                    Non-defaulting Party) in respect of the Terminated Transactions and
                    the Termination Currency Equivalent of the Unpaid Amounts owing
                    to the Non-defaulting Party over (B) the Termination Currency
                    Equivalent of the Unpaid Amounts owing to the
                    Defaulting Party.

                
	
                   

                  (2) First
                    Method and Loss. If
                    the First Method and Loss apply, the
                    Defaulting Party will pay
                    to the Non-defaulting Party, if a positive number, the
                    Non-defaulting Party's Loss in respect
                    of this Agreement.

                

        

         

        
          
            
            

          

          
            9

            
              

            

          

          
            
            

          

        

        
          	
                   

                  
                    (3) Second
                      Method and Market Quotation. If
                      the Second Method and Market Quotation apply,
                      an amount will be payable equal to (A) the sum of the Settlement
                      Amount (determined by
                      the Non-defaulting Party) in
                      respect of the Terminated Transactions and
                      the Termination Currency
                      Equivalent of the
                      Unpaid Amounts owing to the Non-defaulting Party less (B) the Termination
                      Currency Equivalent of the Unpaid Amounts owing to the
                      Defaulting Party. If that amount is a positive number, the
                      Defaulting Party will pay it to the Non-defaulting Party; if
                      it is a negative
                      number, the Non-defaulting
                      Party will pay the absolute value of that amount to the Defaulting
                      Party.

                  

                
	
                   

                  (4) Second
                    Method and Loss.
                    If
                    the Second Method and Loss apply, an
                    amount will be payable
                    equal to the Non-defaulting Party's Loss in respect of this
                    Agreement. If that amount is a
                    positive number, the
                    Defaulting Party will pay it to the Non-defaulting Party;
                    if it is a negative number, the Non-defaulting
                    Party will pay the absolute value of that amount
                    to the Defaulting Party.

                
	
                   

                  (ii) Termination
                    Events. If
                    the Early Termination Date results from a Termination
                    Event:—

                
	
                   

                  (1) One
                    Affected Party.
                    If
                    there is one Affected Party, the amount payable will be determined
                    in accordance with Section
                    6(e)(i)(3), if Market Quotation applies, or Section 6(e)(i)(4), if Loss
                    applies, except that,
                    in either case, references to the Defaulting Party and
                    to the Non-defaulting Party will be deemed to be
                    references to the Affected Party and the party
                    which is not the Affected Party, respectively,
                    and, if Loss applies and fewer than all the Transactions are being
                    terminated, Loss shall be calculated in respect of all
                    Terminated Transactions.

                
	
                   

                  (2) Two
                    Affected Parties. If
                    there are two Affected Parties:—

                
	
                   

                  (A) if
                    Market Quotation applies, each party will determine
                    a Settlement Amount in respect of the Terminated
                    Transactions, and an amount will be payable
                    equal to (I) the sum of (a) one-half of the
                    difference between the Settlement Amount of the party with
                    the higher Settlement Amount (“X”) and the Settlement
                    Amount of the party with the
                    lower Settlement Amount (“Y”) and (b) the Termination
                    Currency Equivalent of the Unpaid Amounts owing
                    to X less (II) the Termination Currency Equivalent of the Unpaid
                    Amounts owing to Y; and

                
	
                   

                  (B) if
                    Loss applies, each party will determine its
                    Loss in respect of this Agreement (or,
                    if fewer than all the Transactions are being terminated, in
                    respect of all Terminated Transactions) and an
                    amount will be payable equal to one-half
                    of
                    the difference between the Loss of
                    the party with the higher Loss (“X”) and
                    the Loss of the party with the lower
                    Loss (“Y”).

                
	
                   

                  If
                    the amount payable is a positive number, Y will pay it to X;
                    if it is
                    a negative number, X will pay the absolute
                    value of that amount to Y.

                
	
                   

                  (iii) Adjustment
                    for Bankruptcy. In
                    circumstances where an Early Termination Date occurs
                    because “Automatic Early Termination” applies in respect of a
                    party, the amount determined under
                    this Section 6(e) will be subject to such adjustments as
                    are appropriate and permitted by law to
                    reflect any payments or
                    deliveries made by one
                    party to the other under this Agreement (and retained
                    by such other party) during the period from the relevant
                    Early Termination Date to the date for
                    payment determined under Section 6(d)(ii).

                
	
                   

                  (iv) Pre-Estimate.
                    The
                    parties
                    agree that if Market Quotation
                    applies an amount recoverable under
                    this Section 6(e) is a reasonable pre-estimate of loss and
                    not a penalty. Such amount is payable for
                    the loss of bargain and the loss of protection against
                    future risks and except as otherwise provided
                    in this Agreement neither party will be entitled to recover
                    any additional damages as a consequence
                    of such losses.

                

        

         

        
          
            
            

          

          
            10

            
              

            

          

          
            
            

          

        

        
          	
                   

                  7. Transfer

                
	
                   

                  Subject
                    to Section 6(b)(ii), neither this Agreement nor any interest
                    or obligation
                    in or under this Agreement
                    may be transferred (whether
                    by way of security or otherwise) by either party without
                    the prior written consent
                    of the other party, except that: —

                
	
                   

                  (a) a
                    party may make such a transfer of this Agreement pursuant to
                    a consolidation or amalgamation
                    with, or merger with or into, or transfer of all or
                    substantially all its assets to,
                    another entity (but without
                    prejudice to any other right or remedy under this
                    Agreement); and

                
	
                   

                  (b) a
                    party may make such a transfer of all or any part of its interest
                    in
                    any amount payable to it from
                    a Defaulting Party under Section 6(e).

                
	
                   

                  Any
                    purported transfer that is not in compliance with this Section
                    will be
                    void.

                
	
                   

                  8. Contractual
                    Currency

                
	
                   

                  (a) Payment
                    in the Contractual Currency. Each
                    payment under this Agreement will be made in the
                    relevant currency specified
                    in this Agreement for that payment (the “Contractual Currency”). To the extent
                    permitted by applicable law, any obligation to make payments
                    under this Agreement in the Contractual
                    Currency will not be discharged or satisfied by any tender in
                    any currency other than the Contractual
                    Currency, except to the
                    extent such tender results in the actual receipt
                    by
                    the party to which payment is owed,
                    acting in a reasonable manner and
                    in good faith in converting the currency
                    so
                    tendered into the Contractual Currency, of the full amount
                    in the Contractual Currency of all amounts
                    payable in respect of this Agreement.
                    If for any reason the amount in the Contractual Currency so
                    received falls short of the amount in the
                    Contractual Currency payable
                    in respect of this Agreement, the party required
                    to
                    make the payment will, to the extent permitted by
                    applicable law, immediately pay such additional amount
                    in the Contractual Currency
                    as may be necessary to
                    compensate for the shortfall. If for any reason
                    the amount in the Contractual Currency
                    so received exceeds the amount
                    in the Contractual Currency payable
                    in
                    respect of this Agreement, the party
                    receiving the payment will refund promptly the amount of such
                    excess.

                
	
                   

                  (b) Judgments.
                    To
                    the extent permitted by applicable law, if any judgment or
                    order expressed in a currency other than the
                    Contractual Currency is rendered (i) for the payment
                    of
                    any amount owing in respect
                    of this Agreement, (ii) for the payment of any
                    amount relating to any early
                    termination in respect of this
                    Agreement or (iii) in respect
                    of a judgment or order of another court for the
                    payment of any amount described
                    in (i) or (ii) above, the party seeking recovery, after
                    recovery in full of the aggregate amount to which such
                    party is entitled pursuant to the judgment or order, will
                    be entitled to receive immediately from the other
                    party the amount of any shortfall of the Contractual
                    Currency received by such party as a consequence of
                    sums paid in such other currency and will refund promptly
                    to the other party any excess of the Contractual
                    Currency received by such party as a consequence of sums paid in
                    such other currency if such shortfall or
                    such excess arises or results from any variation between the
                    rate of exchange at which the Contractual
                    Currency is converted into the
                    currency of the judgment or order for
                    the purposes of such judgment or order
                    and the rate of exchange at which such party is able,
                    acting in a reasonable manner and in good faith in
                    converting the currency received
                    into the Contractual Currency, to purchase
                    the Contractual Currency with
                    the amount of the currency of the judgment or order
                    actually received by such party. The term “rate of
                    exchange” includes, without
                    limitation, any premiums and costs
                    of
                    exchange payable in connection with the
                    purchase of or conversion into the Contractual
                    Currency.

                
	
                   

                  (c) Separate
                    Indemnities. To
                    the extent permitted by applicable law,
                    these indemnities constitute separate and independent
                    obligations from the other obligations in this Agreement,
                    will be enforceable as separate and independent
                    causes of action, will apply notwithstanding any indulgence
                    granted by the party to which any payment is
                    owed and will not be affected by judgment being obtained or
                    claim or proof being made for any other sums
                    payable in respect of this Agreement.

                
	
                   

                  (d) Evidence
                    of Loss. For
                    the purpose of this Section 8, it will be sufficient for
                    a party to demonstrate that it would have
                    suffered a loss had an actual exchange or purchase been
                    made.

                

        

         

        
          
            
            

          

          
            11

            
              

            

          

          
            
            

          

        

        
          	
                   

                  9. Miscellaneous

                
	
                   

                  (a) Entire
                    Agreement. This
                    Agreement constitutes the entire agreement and understanding of the parties
                    with respect to its subject matter and supersedes all oral
                    communication and prior writings with respect
                    thereto.

                
	
                   

                  (b) Amendments.
                    No
                    amendment, modification or waiver in respect of this
                    Agreement will be effective unless in writing
                    (including a writing evidenced by a facsimile transmission) and
                    executed
                    by each of the parties or confirmed by an
                    exchange of telexes or electronic messages on an electronic messaging
                    system.

                
	
                   

                  (c) Survival
                    of Obligations. Without
                    prejudice to Sections 2(a)(iii) and 6(c)(ii),
                    the obligations of the parties under this
                    Agreement will survive the termination of any
                    Transaction.

                
	
                   

                  (d) Remedies
                    Cumulative. Except
                    as provided in this Agreement, the
                    rights, powers, remedies and
                    privileges provided in this Agreement are cumulative and not
                    exclusive of any rights, powers, remedies
                    and privileges provided by law.

                
	
                   

                  (e) Counterparts
                    and Confirmations.

                
	
                   

                  (i) This
                    Agreement (and each amendment, modification and waiver in respect
                    of it) may be executed and delivered in
                    counterparts (including by facsimile transmission), each
                    of which will be
                    deemed an original.

                
	
                   

                  (ii) The
                    parties intend that they are legally
                    bound by the terms of each Transaction
                    from the moment they agree to those terms
                    (whether orally or otherwise).
                    A Confirmation shall be entered into as
                    soon as practicable and may be executed and delivered in
                    counterparts (including by facsimile
                    transmission) or be created by an exchange of telexes or by an
                    exchange of electronic messages on an electronic messaging system,
                    which in
                    each case will be sufficient
                    for all purposes to evidence a binding supplement to
                    this Agreement. The parties will specify therein or
                    through another effective
                    means that any such counterpart, telex or electronic
                    message constitutes a
                    Confirmation.

                
	
                   

                  (f) No
                    Waiver of Rights.
                    A
                    failure
                    or delay in exercising any right,
                    power or privilege in respect of this
                    Agreement will not
                    be presumed to operate
                    as
                    a waiver, and a single or partial exercise
                    of any right, power or privilege will not be
                    presumed to preclude any subsequent or further exercise, of that
                    right, power or privilege or the exercise of any other
                    right, power or privilege.

                
	
                   

                  (g) Headings.
                    The
                    headings used in this Agreement are for convenience of reference
                    only and are not to affect the construction
                    of or to be taken into consideration in interpreting this
                    Agreement.

                
	
                   

                  10. Offices;
                    Multibranch Parties

                
	
                   

                  (a) If
                    Section 10(a) is specified in the Schedule as applying, each
                    party that
                    enters into a Transaction through an Office other
                    than its head or home office represents to the other party
                    that, notwithstanding the place of booking office
                    or jurisdiction
                    of incorporation or organisation
                    of
                    such party, the obligations of such party are the same
                    as if it had entered into the Transaction through its head
                    or
                    home office. This representation
                    will be deemed to be repeated by such party on each date on
                    which a Transaction is entered
                    into.

                
	
                   

                  (b) Neither
                    party may change the Office through which it makes and
                    receives payments or deliveries
                    for the purpose of a Transaction without the prior written
                    consent of the other party.

                
	
                   

                  (c) If
                    a party is specified as a Multibranch Party in the Schedule,
                    such
                    Multibranch Party may make
                    and receive payments or deliveries under
                    any Transaction through any Office listed
                    in
                    the Schedule, and the
                    Office through which it makes and receives payments or
                    deliveries with respect to a Transaction will be
                    specified in the relevant Confirmation.

                
	
                   

                  11. Expenses

                
	
                   

                  A
                    Defaulting Party will, on demand, indemnify and hold harmless
                    the other
                    party for and against all
                    reasonable out-of-pocket expenses, including legal fees and
                    Stamp Tax, incurred by such other party by
                    reason of the enforcement
                    and protection of its rights under this Agreement or
                    any Credit Support Document to which the Defaulting
                    Party is a party or by reason of the early
                    termination of any Transaction, including,
                    but not limited to, costs of
                    collection.

                

        

         

        
          
            
            

          

          
            12

            
              

            

          

          
            
            

          

        

        
          	
                   

                  12. Notices

                
	
                   

                  (a) Effectiveness. Any
                    notice or other
                    communication in respect of this Agreement
                    may be given in any manner set forth below
                    (except that a notice or other communication
                    under Section 5 or 6 may not be given
                    by facsimile transmission or electronic messaging system) to the
                    address or number or in accordance with
                    the electronic messaging system details provided (see the
                    Schedule) and will be deemed effective as
                    indicated:—

                
	
                   

                  (i) if
                    in writing and delivered in person or by courier, on the date
                    it is
                    delivered;

                
	
                   

                  (ii) if
                    sent by telex, on the date the recipient's answerback is
                    received;

                
	
                   

                  (iii) if
                    sent by facsimile transmission, on the date that transmission
                    is
                    received by a responsible employee of  the
                    recipient in legible form (it being agreed that the burden of
                    proving receipt will be on the sender and
                    will not be met by a transmission report generated by
                    the sender's facsimile machine);

                
	
                   

                  (iv) if
                    sent by certified or registered mail (airmail, if overseas) or
                    the equivalent (return receipt
                    requested), on the date that mail is delivered or its
                    delivery is attempted; or

                
	
                   

                  (v) if
                    sent by electronic messaging system, on the date that electronic
                    message
                    is received,

                
	
                   

                  unless
                    the
                    date of that delivery (or attempted delivery) or that receipt,
                    as
                    applicable, is not a Local Business
                    Day or that communication
                    is delivered (or attempted)
                    or
                    received, as applicable, after the close of business
                    on a Local Business Day,
                    in which case that communication
                    shall be deemed given and effective on the first
                    following day that is a Local Business
                    Day.

                
	
                   

                  (b) Change
                    of Addresses.
                    Either
                    party may by notice to the other change the
                    address, telex or facsimile
                    number or electronic messaging
                    system details at which notices
                    or
                    other communications are to be given to it.

                
	
                   

                  13. Governing
                    Law and Jurisdiction

                
	
                   

                  (a) Governing
                    Law. This
                    Agreement will be governed by and construed
                    in accordance with the law
                    specified in the Schedule.

                
	
                   

                  (b) Jurisdiction.
                    With
                    respect to any suit, action or
                    proceedings relating to this Agreement
                    (“Proceedings”), each party irrevocably:—

                
	
                   

                  (i) submits
                    to the jurisdiction
                    of the English courts, if this Agreement
                    is expressed to be governed
                    by English law, or to the non-exclusive jurisdiction of the
                    courts of the State of New York and the
                    United States District Court located in the Borough of Manhattan
                    in New York City, if this
                    Agreement is expressed to be governed by the laws of the
                    State of New York; and

                
	
                   

                  (ii) waives
                    any objection which it may have at any time to the laying
                    of venue of any Proceedings
                    brought in any such court, waives any claim that such
                    Proceedings have been brought in an
                    inconvenient forum and further waives the right to object,
                    with respect to such Proceedings, that
                    such court does not have any jurisdiction over such
                    party.

                
	
                   

                  Nothing
                    in this Agreement precludes either party from bringing Proceedings
                    in any other jurisdiction
                    (outside, if this Agreement is expressed to be
                    governed by English law, the Contracting States, as defined
                    in Section 1(3) of
                    the Civil Jurisdiction and Judgments Act 1982 or
                    any modification, extension or
                    reenactment thereof for the time being in force) nor will
                    the bringing of Proceedings in any one or more
                    jurisdictions preclude the bringing of Proceedings in any
                    other jurisdiction.

                

        

         

        
          
            
            

          

          
            13

            
              

            

          

          
            
            

          

        

        
          	
                   

                  
                    (c) Service
                      of Process. Each
                      party
                      irrevocably appoints the Process Agent
                      (if any) specified opposite
                      its name in the Schedule
                      to receive, for it and on its behalf, service of process
                      in
                      any Proceedings. If for any reason any party's Process
                      Agent is unable to act as such, such party will promptly
                      notify the other party and within 30 days
                      appoint a substitute process agent acceptable to the other
                      party. The parties irrevocably
                      consent to service of process given in the manner provided
                      for notices in Section 12. Nothing in this
                      Agreement will affect the right of either party to serve
                      process in any other manner permitted by law.

                  

                
	
                   

                  (d) Waiver
                    of Immunities. Each
                    party irrevocably waives, to the fullest
                    extent permitted by applicable
                    law, with respect to itself
                    and its
                    revenues and assets (irrespective of their use or
                    intended use), all immunity
                    on the grounds of sovereignty
                    or other similar grounds from
                    (i) suit, (ii) jurisdiction of any court, (iii) relief
                    by way of injunction, order
                    for specific performance or for recovery of property,
                    (iv) attachment of its assets
                    (whether before or after judgment) and (v) execution or
                    enforcement of any judgment to which it or its
                    revenues or assets might otherwise be entitled in any
                    Proceedings in the courts of any jurisdiction and
                    irrevocably agrees, to the extent permitted
                    by applicable law, that it will
                    not claim any such immunity in any
                    Proceedings.

                
	
                   

                  14. Definitions

                
	
                   

                  As
                    used in this Agreement:—

                
	
                   

                  “Additional
                    Termination Event” has
                    the meaning specified in Section 5(b).

                
	
                   

                  “Affected
                    Party” has
                    the meaning specified in Section 5(b).

                
	
                   

                  “Affected
                    Transactions” means
                    (a) with respect to any Termination Event
                    consisting of an Illegality, Tax
                    Event or Tax Event Upon Merger, all Transactions
                    affected by the occurrence of such Termination Event
                    and (b) with respect to any other Termination Event,
                    all Transactions.

                
	
                   

                  “Affiliate”
                    means,
                    subject to the Schedule, in relation to any person, any
                    entity controlled, directly or
                    indirectly, by the person, any entity that controls,
                    directly or indirectly, the person or
                    any entity directly or indirectly under common
                    control with the person. For this
                    purpose, “control” of any entity or person means
                    ownership of a majority of the voting power of the entity
                    or person.

                
	
                   

                  “Applicable
                    Rate” means:—

                
	
                   

                  (a) in
                    respect of obligations payable or deliverable (or which would
                    have been
                    but for Section 2(a)(iii))
                    by a Defaulting Party, the Default
                    Rate;

                
	
                   

                  (b) in
                    respect of an obligation
                    to pay an amount under Section 6(e) of
                    either party from and after the date
                    (determined in accordance with Section 6(d)(ii)) on which
                    that amount is payable, the Default Rate;

                
	
                   

                  (c) in
                    respect of
                    all other obligations payable or deliverable
                    (or which would have been but for
                    Section 2(a)(iii)) by a Non-defaulting Party, the
                    Non-default Rate; and

                
	
                   

                  (d) in
                    all other cases, the Termination Rate.

                
	
                   

                  “Burdened
                    Party” has
                    the meaning specified in Section 5(b).

                
	
                   

                  “Change
                    in Tax Law” means
                    the enactment,
                    promulgation, execution or ratification of,
                    or any change in or
                    amendment to, any law (or
                    in the application or official interpretation
                    of
                    any law) that occurs on or after the
                    date on which the relevant Transaction is entered
                    into.

                
	
                   

                  “consent”
                    includes
                    a consent, approval, action, authorisation, exemption,
                    notice, filing, registration or
                    exchange control consent.

                
	
                   

                  “Credit
                    Event Upon Merger” has
                    the meaning specified in Section 5(b).

                
	
                   

                  “Credit
                    Support Document” means
                    any
                    agreement or instrument that is specified as such
                    in
                    this Agreement.

                
	
                   

                  “Credit
                    Support Provider” has
                    the meaning specified in the Schedule.

                
	
                   

                  “Default
                    Rate” means
                    a rate per annum equal to the cost (without proof or evidence
                    of
                    any actual cost) to the relevant payee (as
                    certified by it) if it were to fund or of funding the relevant
                    amount plus
                    1% per
                    annum.

                

        

         

        
          
            
            

          

          
            14

            
              

            

          

          
            
            

          

        

        
          	
                   

                  “Defaulting
                    Party” has
                    the meaning specified in Section 6(a).

                
	
                   

                  “Early
                    Termination Date” means
                    the date determined in accordance with Section 6(a) or
                    6(b)(iv).

                
	
                   

                  “Event
                    of Default” has
                    the meaning specified in Section 5(a) and,
                    if applicable, in the Schedule.

                
	
                   

                  “Illegality”
                    has
                    the meaning specified in Section 5(b).

                
	
                   

                  “Indemnifiable
                    Tax” means
                    any Tax other than a Tax that would not be imposed
                    in respect of a payment
                    under this Agreement but for a present or former connection
                    between the jurisdiction of the government or
                    taxation authority imposing
                    such Tax and the recipient of such payment or a person
                    related to such recipient
                    (including, without limitation, a connection arising from such
                    recipient or related person being or having
                    been a citizen or resident of such jurisdiction, or
                    being or having been organised,
                    present or engaged in a
                    trade or business in such jurisdiction, or having or having
                    had a permanent establishment or fixed place of
                    business in such jurisdiction,
                    but excluding a connection arising solely from such
                    recipient or related person
                    having executed, delivered, performed its obligations or
                    received a payment under, or enforced, this
                    Agreement or a Credit Support Document).

                
	
                   

                  “law” includes
                    any treaty, law, rule
                    or regulation (as modified, in the case of tax matters,
                    by the practice of
                    any relevant governmental revenue authority) and
                    “lawful”
                    and
                    “unlawful”
                    will
                    be construed
                    accordingly.

                
	
                   

                  “Local
                    Business Day” means,
                    subject to the Schedule, a day on which commercial
                    banks are open for business (including dealings
                    in foreign exchange and foreign currency deposits) (a)
                    in relation to any
                    obligation under Section 2(a)(i), in
                    the place(s) specified in the relevant Confirmation
                    or, if not so specified,
                    as otherwise agreed by
                    the parties in writing or determined pursuant
                    to
                    provisions contained, or incorporated
                    by reference, in this Agreement, (b) in relation
                    to any other payment, in the place where the relevant account
                    is located and, if different, in the principal
                    financial centre, if any, of the currency of
                    such payment, (c) in relation to any notice
                    or other communication, including notice contemplated under
                    Section 5(a)(i), in the
                    city specified in the address for notice provided by
                    the recipient and, in the case of a notice contemplated
                    by Section 2(b), in the place where the relevant
                    new account is to
                    be located and (d) in relation to
                    Section 5(a)(v)(2), in the
                    relevant locations for performance with respect to such Specified
                    Transaction.

                
	
                   

                  “Loss”
                    means,
                    with respect to this Agreement or one or more Terminated Transactions,
                    as
                    the case may be, and
                    a party, the Termination Currency Equivalent of an amount
                    that party reasonably determines in good faith to be
                    its total losses and
                    costs (or
                    gain, in which case expressed
                    as
                    a negative number) in connection with this Agreement
                    or that Terminated Transaction
                    or group of Terminated Transactions, as the case may
                    be, including any loss of
                    bargain, cost of funding or, at the election of such
                    party but without duplication, loss or
                    cost incurred as a result
                    of its terminating, liquidating, obtaining or
                    reestablishing any hedge or related
                    trading position (or any gain
                    resulting from any of them). Loss includes losses and
                    costs
                    (or gains) in respect of any payment or delivery
                    required to have been made
                    (assuming satisfaction of each applicable
                    condition precedent) on or before the relevant Early Termination Date
                    and not made, except, so as to avoid duplication, if
                    Section 6(e)(i)(1) or (3) or
                    6(e)(ii)(2)(A) applies. Loss
                    does not include a party's legal fees and out-of-pocket expenses referred to under
                    Section
                    11. A party will determine its Loss as of the relevant
                    Early Termination Date, or, if that is not reasonably
                    practicable, as of the earliest date thereafter as is
                    reasonably practicable. A party may (but need not) determine
                    its Loss by reference to
                    quotations of relevant rates or prices from
                    one or more leading dealers in the relevant
                    markets.

                

        

         

        
          
            
            

          

          
            15

            
              

            

          

          
            
            

          

        

        
          	
                   

                  
                    “Market
                      Quotation” means,
                      with respect to one or more Terminated Transactions and
                      a party making the
                      determination, an amount determined on the basis of
                      quotations from Reference Market-makers. Each
                      quotation will be for an amount, if any, that would be paid
                      to such party (expressed as a negative number)
                      or by such party (expressed
                      as a positive number) in consideration of an
                      agreement between such party (taking
                      into account any existing Credit Support Document with
                      respect to the obligations of such party) and the
                      quoting Reference Market-maker to enter into a transaction (the
                      “Replacement Transaction”) that would
                      have the effect of preserving for such party the
                      economic equivalent of any payment or delivery (whether
                      the underlying obligation was absolute or contingent and
                      assuming the satisfaction of each applicable
                      condition precedent) by the
                      parties under Section 2(a)(i) in respect of such
                      Terminated Transaction or group
                      of Terminated Transactions that
                      would, but for the occurrence of the relevant
                      Early Termination Date, have been required after that date. For
                      this purpose, Unpaid Amounts in respect of the Terminated Transaction or
                      group of Terminated Transactions are to be excluded but,
                      without limitation, any payment or delivery that
                      would, but for the relevant Early Termination Date, have
                      been required (assuming satisfaction of each
                      applicable condition precedent) after that Early Termination
                      Date is to be included. The Replacement
                      Transaction would be subject
                      to such documentation as such party and the Reference Market-maker may, in
                      good faith, agree. The
                      party making the determination (or its
                      agent) will request each Reference
                      Market maker to provide its quotation to the extent
                      reasonably practicable as of the same day and time
                      (without regard to different time zones) on or as soon as
                      reasonably practicable after the relevant Early
                      Termination Date. The day and
                      time as of which those quotations are to be obtained
                      will be selected in good
                      faith by the party obliged to
                      make a determination under Section 6(e), and,
                      if each party is so obliged, after
                      consultation with the other. If more than three quotations
                      are provided, the Market Quotation will be the
                      arithmetic mean of the quotations, without
                      regard to the quotations having the highest
                      and lowest values. If
                      exactly three such quotations are provided, the Market
                      Quotation will be the quotation remaining after
                      disregarding the highest and lowest quotations. For this
                      purpose, if more than one quotation has the same
                      highest value or lowest
                      value, then one of such quotations shall be disregarded.
                      If fewer than three quotations are provided, it will
                      be deemed that the Market Quotation in respect
                      of
                      such Terminated Transaction or group
                      of Terminated Transactions cannot be
                      determined.

                  

                
	
                   

                  “Non-default
                    Rate” means
                    a rate
                    per annum equal to the cost (without proof or evidence of any actual cost)
                    to the Non-defaulting Party (as certified by it) if it were
                    to fund the relevant amount.

                
	
                   

                  “Non-defaulting
                    Party” has
                    the meaning specified in Section 6(a).

                
	
                   

                  “Office”
                    means
                    a branch or office of a party, which may be such party's head
                    or home
                    office.

                
	
                   

                  “Potential
                    Event of Default” means
                    any
                    event which, with the giving of notice or
                    the lapse of time or both,
                    would constitute an Event of Default.

                
	
                   

                  “Reference
                    Market-makers” means
                    four leading dealers in the relevant
                    market selected by the party
                    determining a Market Quotation in good faith (a) from among
                    dealers of the highest credit standing which
                    satisfy all the criteria that such party applies generally
                    at the time in deciding whether to offer or to make
                    an extension of credit and
                    (b) to the extent practicable, from among such dealers
                    having an office in the same city.

                
	
                   

                  “Relevant
                    Jurisdiction” means,
                    with respect to a party, the jurisdictions (a) in
                    which the party is incorporated, organised, managed
                    and controlled or considered to have
                    its seat, (b) where an Office through
                    which the party is acting for purposes of this Agreement is
                    located, (c) in which the party executes this
                    Agreement and (d) in relation to any payment, from or
                    through which such payment is
                    made.

                
	
                   

                  “Scheduled
                    Payment Date” means
                    a date on which a payment or delivery is to be
                    made under Section 2(a)(i)
                    with respect to a Transaction.

                
	
                   

                  “Set-off”
                    means
                    set-off, offset, combination of accounts, right of retention
                    or
                    withholding or similar right
                    or requirement to which
                    the payer of an amount
                    under Section 6 is entitled
                    or
                    subject (whether arising under
                    this Agreement, another contract, applicable law or
                    otherwise) that is exercised by, or imposed on, such
                    payer.

                
	
                   

                  “Settlement
                    Amount” means,
                    with respect to a party and any Early Termination Date, the sum
                    of:—

                
	
                   

                  (a) the
                    Termination Currency
                    Equivalent of the Market Quotations (whether
                    positive or negative) for each
                    Terminated Transaction or group
                    of Terminated Transactions for which
                    a
                    Market Quotation is determined; 

                
	
                  and

                
	
                   

                  (b) such
                    party's Loss (whether positive or negative and without reference
                    to any Unpaid Amounts) for
                    each Terminated Transaction or
                    group of Terminated Transactions for which a Market Quotation cannot be
                    determined or would not (in the reasonable belief of the
                    party making the determination) produce a
                    commercially reasonable result.

                
	
                   

                  “Specified
                    Entity” has
                    the meaning specified in the
                    Schedule.

                

        

         

        
          
            
            

          

          
            16

            
              

            

          

          
            
            

          

        

        
          	
                   

                  “Specified
                    Indebtedness” means,
                    subject to the Schedule, any obligation
                    (whether present or future,
                    contingent or otherwise, as principal or surety or
                    otherwise) in respect of borrowed money.

                
	
                   

                  “Specified
                    Transaction” means,
                    subject
                    to the Schedule, (a) any transaction (including
                    an agreement with respect
                    thereto) now existing or hereafter
                    entered into between one party to this
                    Agreement (or any Credit Support Provider of such party or any
                    applicable Specified Entity of such party) and the other
                    party to this Agreement (or
                    any Credit Support Provider of
                    such
                    other party or
                    any applicable Specified Entity of
                    such other party) which is
                    a rate swap transaction, basis swap, forward rate
                    transaction, commodity
                    swap, commodity option, equity or
                    equity index swap, equity or equity index option, bond
                    option, interest rate option, foreign exchange transaction,
                    cap transaction, floor transaction, collar
                    transaction, currency swap
                    transaction, cross-currency rate swap
                    transaction, currency option or any other similar
                    transaction (including any option
                    with respect to any of these
                    transactions), (b) any combination of these
                    transactions and (c) any other
                    transaction identified as a Specified
                    Transaction in  this Agreement or the
                    relevant
                    confirmation.

                
	
                   

                  “Stamp
                    Tax” means
                    any stamp, registration, documentation or similar tax.

                
	
                   

                  “Tax”
                    means
                    any present
                    or future tax, levy, impost, duty, charge,
                    assessment or fee of any nature (including
                    interest, penalties and additions thereto) that is imposed
                    by any government or other taxing authority in
                    respect of any payment under this Agreement
                    other than a stamp, registration, documentation
                    or
                    similar tax.

                
	
                   

                  “Tax
                    Event” has
                    the meaning specified in Section 5(b).

                
	
                   

                  “Tax
                    Event Upon Merger” has
                    the meaning specified in Section 5(b).

                
	
                   

                  “Terminated
                    Transactions” means
                    with respect to any Early Termination Date
                    (a) if resulting from a Termination Event, all Affected Transactions
                    and (b) if resulting from
                    an
                    Event of Default, all Transactions
                    (in either case) in effect immediately
                    before the effectiveness of the notice designating that Early Termination
                    Date (or, if “Automatic Early Termination”
                    applies, immediately before that Early Termination
                    Date).

                
	
                   

                  “Termination
                    Currency” has
                    the meaning specified in the Schedule.

                
	
                   

                  “Termination
                    Currency Equivalent” means,
                    in respect of any
                    amount denominated in the Termination
                    Currency, such Termination Currency
                    amount and, in respect of any amount denominated in a currency other
                    than the Termination Currency
                    (the “Other Currency”), the amount in
                    the Termination Currency determined
                    by the party making the relevant determination as
                    being required to purchase such amount of such Other
                    Currency as at the relevant Early
                    Termination Date, or, if the relevant Market Quotation or Loss (as the case
                    may be), is determined as of a
                    later date, that later date, with the
                    Termination Currency at the rate equal to
                    the spot exchange rate of the foreign exchange agent
                    (selected as provided below) for the purchase of such
                    Other Currency with the Termination Currency at or about 11:00
                    a.m. (in the city in which such foreign
                    exchange agent is located) on such date as would be
                    customary for the determination of such a rate for the
                    purchase of such Other Currency for value on the
                    relevant Early Termination Date
                    or that later date. The
                    foreign exchange agent will, if only one party is obliged
                    to make a determination under Section 6(e), be
                    selected in good faith by that party and
                    otherwise will be agreed by the parties.

                
	
                   

                  “Termination
                    Event” means
                    an Illegality, a Tax Event or a Tax Event Upon Merger or,
                    if specified to be
                    applicable, a Credit Event Upon Merger or an Additional
                    Termination Event.

                
	
                   

                  “Termination
                    Rate” means
                    a rate per annum equal to the arithmetic mean of
                    the cost (without proof or
                    evidence of any actual cost) to each party (as
                    certified by such party) if it were to
                    fund or of funding such
                    amounts.

                

        

         

        
          
            
            

          

          
            17

            
              

            

          

          
            
            

          

        

        
          	
                   

                  
                    “Unpaid
                      Amounts” owing
                      to any
                      party means, with respect to an Early Termination
                      Date, the aggregate of
                      (a) in respect of all Terminated
                      Transactions, the amounts
                      that became payable (or that would have become
                      payable but for Section 2(a)(iii)) to such party under
                      Section 2(a)(i) on or prior to such Early Termination
                      Date and which remain unpaid as at such Early
                      Termination Date and (b) in respect of each Terminated
                      Transaction, for each obligation
                      under Section 2(a)(i) which was (or
                      would have been but for
                      Section 2(a) (iii)) required
                      to be settled by delivery to such party on or prior to such Early Termination Date
                      and which has not been so settled as at such Early
                      Termination Date, an amount equal to the fair market value of that
                      which was (or would have been) required to be delivered as
                      of
                      the originally scheduled date for delivery, in each case
                      together with (to the extent permitted
                      under applicable law) interest, in the currency
                      of such amounts, from
                      (and including) the date such amounts or
                      obligations were or would have been required
                      to have been paid or
                      performed to (but excluding) such Early
                      Termination Date, at the Applicable Rate. Such
                      amounts of interest will be calculated on the basis of
                      daily compounding and the actual number of days
                      elapsed. The fair market value of any obligation referred to in
                      clause (b) above shall be reasonably
                      determined by the party
                      obliged to make the determination
                      under Section 6(e) or, if each party is so obliged,
                      it shall be the average of the Termination Currency
                      Equivalents of the fair market values reasonably
                      determined by both parties.

                  

                
	
                   

                  IN
                    WITNESS WHEREOF the parties have executed this document on the
                    respective dates specified below with effect from
                    the date specified on the first page of this
                    document.

                

        

        

        

        

        
          	
                  SWISS
                    RE FINANCIAL PRODUCTS CORPORATION

                	 	
                  HSBC
                    Bank USA, National Association, not individually, but solely
                    as
                    Supplemental Interest Trust Trustee on behalf of the Supplemental
                    Interest
                    Trust with respect to the ACE Securities Corp. Home Equity Loan
                    Trust,
                    Series 2006-NC2 Asset Backed Pass Through
                    Certificates.

                
	 	 	 
	
                   

                	 	
                   

                
	
                  By:
                    

                  Title:
                    

                  Date:
                    September 15, 2006

                	 	
                  By:
                     

                  Title:
                    

                  Date:
                    September 15, 2006

                

        

        

         

        

        

        (Signature
          Page for ISDA Master - Transaction Reference Numbers 1055739 and
          1055750)

         

        
          
            
            

          

          
            18

            
              

            

          

          
            
            

          

        

        (Multicurrency
          - Cross Border)

        

        

        ISDA®

        International
          Swaps and Derivatives Association, Inc.

        

        

        SCHEDULE
          

        to
          the 

        Master
          Agreement

        

        

        dated
          as
          of September 15, 2006

        

        and
          governing solely the Transactions with Reference Numbers 1055739 and
          1055750

        between

        

        
          	
                  SWISS
                    RE FINANCIAL PRODUCTS CORPORATION

                	
                  and

                	
                  HSBC
                    Bank USA, National Association, not individually, but solely
                    as
                    Supplemental Interest Trust Trustee on behalf of the Supplemental
                    Interest
                    Trust with respect to the ACE Securities Corp. Home Equity Loan
                    Trust,
                    Series 2006-NC2 Asset Backed Pass Through
                    Certificates.

                
	
                   

                  ("Party
                    A")

                   

                	 	
                   

                  ("Party
                    B")

                

        

         

        Part
          1

         

        Termination
          Provisions.

         

        
          	
                  (a)

                	
                  "Specified
                    Entity"
                    means in relation to Party A for the purpose
                    of:

                

        

         

        
          	 	
                  Section
                    5(a)(v),

                	
                  Not
                    Applicable

                
	 	
                  Section
                    5(a)(vi),

                	
                  Not
                    Applicable

                
	 	
                  Section
                    5(a)(vii),

                	
                  Not
                    Applicable

                
	 	
                  Section
                    5(b)(iv),

                   

                	
                  Not
                    Applicable

                   

                

        

        and
          in
          relation to Party B for the purpose of:

         

        
          	 	
                  Section
                    5(a)(v),

                	
                  Not
                    Applicable

                
	 	
                  Section
                    5(a)(vi),

                	
                  Not
                    Applicable

                
	 	
                  Section
                    5(a)(vii),

                	
                  Not
                    Applicable

                
	 	
                  Section
                    5(b)(iv),

                   

                	
                  Not
                    Applicable

                   

                

        

         

        
          
            
            

          

          
            1

            
              

            

          

          
            
            

          

        

        
          	
                  (b)

                	
                  "Specified
                    Transaction"
                    will have the meaning specified in Section 14 of this
                    Agreement.

                

        

         

        
          	
                  (c)

                	
                  Certain
                    Events of Default.
                    The following Events of Default will apply to the parties as
                    specified
                    below, and the definition of "Event of Default" in Section 14
                    is deemed to
                    be modified accordingly:

                

        

         

        Section
          5(a)(i) (Failure
          to Pay or Deliver)
          will
          apply to Party A and Party B 

        Section
          5(a)(ii) (Breach
          of Agreement)
          will
          not apply to Party A or Party B.

        Section
          5(a)(iii) (Credit
          Support Default)
          will
          not apply to Party B.

        Section
          5(a)(iv) (Misrepresentation)
          will
          not apply to Party A or Party B.

        Section
          5(a)(v) (Default
          under Specified Transaction)
          will
          not apply to Party A or Party B.

        Section
          5(a)(vi) (Cross
          Default)
          will
          not apply to Party A or Party B.

        Section
          5(a)(vii) (Bankruptcy)
          will
          apply to Party A and Party B; provided
          that
          clause (2) thereof shall not apply to Party B.

        Section
          5(a)(viii) (Merger
          without Assumption)
          will
          apply to Party A and will not apply Party B.

         

        
          	
                  (d)

                	
                  Termination
                    Events.
                    The following Termination Events will apply to the parties as
                    specified
                    below:

                

        

         

        Section
          5(b)(i) (Illegality)
          will
          apply to Party A and Party B.

        Section
          5(b)(ii) (Tax
          Event)
          will
          apply to Party A and Party B.

        Section
          5(b)(iii) (Tax
          Event upon Merger)
          will
          apply to Party A and will not apply to Party B; provided for clarification
          that
          Party B may be a Burdened Party for purpose of this provision.

        Section
          5(b)(iv) (Credit
          Event upon Merger)
          will
          not apply to Party A or Party B.

        

        
          	
                  (e)

                	
                  The
                    "Automatic
                    Early Termination"
                    provision of Section 6(a) of this Agreement will not apply to
                    Party A and
                    will not apply to Party B.

                

        

         

        
          	
                  (f)

                	
                  Payments
                    on Early Termination.
                    For the purpose of Section 6(e) of this
                    Agreement:

                

        

         

        
          	 	
                  (i)

                	
                  Market
                    Quotation will apply.

                

        

         

        
          	 	
                  (ii)

                	
                  The
                    Second Method will apply.

                

        

         

        
          	
                  (g)

                	
                  "Termination
                    Currency"
                    means United States Dollars.

                

        

         

        
          	
                  (h)

                	
                  Additional
                    Termination Events.
                    The following Additional Termination Events will apply, in each
                    case with
                    respect to Party B as the sole Affected Party (unless otherwise
                    provided
                    below): 

                

        

         

        
          	 	
                  (i)

                	
                  Swap
                    Counterparty Downgrade:
                    Party A fails to comply with the Downgrade Provisions as set
                    forth in Part
                    5(b). For all purposes of this Agreement, Party A shall be the
                    sole
                    Affected Party with respect to the occurrence of a Termination
                    Event
                    described in this Part 1(h)(i).

                

        

         

        
          	 	
                  (ii)

                	
                  Optional
                    Redemption:
                    Irrevocable Notice of Servicer’s intention to exercise its option to
                    purchase the Mortgage Loans pursuant to Section 10.01 of the
                    Pooling and
                    Servicing Agreement provided, however, that notwithstanding Section
                    6(b)(iv) of the Agreement, only Party B shall have the right
                    to designate
                    an Early Termination Date in respect of this Additional Termination
                    Event.
                    

                

        

         

        
          	 	
                  (iii)

                	
                  Provision
                    of Information Required by Regulation AB:
                    Party A shall fail to comply with the provisions of Part 5(s)
                    upon the
                    occurrence of a Swap Disclosure Event. For all purposes of this
                    Agreement,
                    Party A shall be the sole Affected Party with respect to the
                    occurrence of
                    a Termination Event described in this Part 1(h)(v).
                    

                

        

         

        
          
            
            

          

          
            2

            
              

            

          

          
            
            

          

        

        Part
          2

         

        Tax
          Representations.

         

        
          	
                  (a)

                	
                  Payer
                    Representations.
                    For the purpose of Section 3(e) of this Agreement, Party A will
                    make the
                    following representation and Party B will make the following
                    representation:

                

        

         

        It
          is not
          required by any applicable law, as modified by the practice of any relevant
          governmental revenue authority, of any Relevant Jurisdiction to make any
          deduction or withholding for or on account of any Tax from any payment
          (other
          than interest under Section 2(e), 6(d)(ii) or 6(e) of this Agreement) to
          be made
          by it to the other party under this Agreement. In making this representation,
          it
          may rely on (i) the accuracy of any representations made by the other party
          pursuant to Section 3(f) of this Agreement, (ii) the satisfaction of the
          agreement contained in Section 4(a)(i) or 4(a)(iii) of this Agreement and
          the
          accuracy and effectiveness of any document provided by the other party
          pursuant
          to Section 4(a)(i) or 4(a)(iii) of this Agreement and (iii) the satisfaction
          of
          the agreement of the other party contained in Section 4(d) of this Agreement,
          provided
          that it
          shall not be a breach of this representation where reliance is placed on
          clause
          (ii) and the other party does not deliver a form or document under Section
          4(a)(iii) of this Agreement by reason of material prejudice to its legal
          or
          commercial position.

         

        
          	
                  (b)

                	
                  Payee
                    Representations.
                    For the purpose of Section 3(f) of this Agreement, Party A and
                    Party B
                    make the representations specified below, if
                    any:

                

        

         

        
          	 	
                  (i)

                	
                  Party
                    A represent that it is a corporation duly organized and existing
                    under the
                    laws of the State of Delaware and is a United States Resident
                    for United
                    States federal tax purposes.

                

        

        

        
          	 	
                  (ii)

                	
                  Party
                    B represents
                    that the beneficial owner of the payments made to it under this
                    Agreement
                    is either (i) a "U.S. person" (as that term is used in section
                    1.1441-4(a)(3)(ii) of United States Treasury Regulations) for
                    United
                    States federal income tax purposes and an "Exempt recipient"
                    within the
                    meaning of section 1.6049-4(c)(1)(ii) of United States Treasury
                    Regulations, or (ii) a "non-U.S. branch of a foreign person"
                    as that term
                    is used in section 1.1441-4(a)(3)(ii) of the United States Treasury
                    Regulations (the "Regulations") for United States federal income
                    tax
                    purposes, and it is a "foreign person" as that term is used in
                    section
                    1.6041-4(a)(4) of the Regulations for United States federal income
                    tax
                    purposes.

                

        

        

         

        Part
          3

         

        Agreement
          to Deliver Documents.

         

        For
          the
          purpose of Sections 4(a)(i) and (ii) of this Agreement, each party agrees
          to
          deliver the following documents, as applicable:

         

        
          	
                  (a)

                	
                  Tax
                    forms, documents or certificates to be delivered
                    are:

                

        

         

        
          	
                  Party
                    required

                  to
                    deliver

                  document

                	
                  Form/Document/Certificate

                	
                  Date
                    by which to be delivered

                
	
                  Party
                    A and Party B

                   

                	
                  Any
                    form or document required or reasonably requested to allow the
                    other party
                    to make payments under the Agreement without any deduction or
                    withholding
                    for or on account of any Tax, or with such deduction or withholding
                    at a
                    reduced rate.

                	
                  Promptly
                    upon reasonable demand by the other party.

                   

                

        

        

        
          
            
            

          

          
            3

            
              

            

          

          
            
            

          

        

        
          	
                  (b)

                	
                  Other
                    documents to be delivered are:

                

        

         

        
          	
                  Party
                    required to deliver document

                   

                	
                  Form/Document/Certificate

                   

                	
                  Date
                    by which to be delivered

                   

                	
                  Covered
                    by Section 3(d)
                    Representation

                   

                
	
                  Party
                    A and Party B

                   

                	
                  Incumbency
                    Certificate (or, if available the current authorized signature
                    book or
                    equivalent authorizing documentation) specifying the names, titles,
                    authority and specimen signatures of the persons authorized to
                    execute
                    this Agreement which sets forth the specimen signatures of each
                    signatory
                    to this Agreement and each Confirmation signing on its
                    behalf.

                   

                	
                  Concurrently
                    with the execution and delivery of this Agreement unless previously
                    delivered and still in full force and effect.

                   

                	
                  Yes

                   

                
	
                  Party
                    A

                   

                	
                  Opinions
                    of counsel of Party A reasonably satisfactory to Party B.

                   

                	
                  Concurrently
                    with the execution and delivery of the Confirmation.

                   

                	
                  No

                   

                
	
                  Party
                    B

                   

                	
                  Opinions
                    of counsel of Party B reasonably satisfactory to Party A.

                   

                	
                  Concurrently
                    with the execution and delivery of the Confirmation.

                   

                	
                  No

                   

                
	
                  Party
                    A

                   

                	
                  The
                    Guaranty of Swiss Re dated as of the date hereof.

                   

                	
                  Concurrently
                    with the execution and delivery of the Confirmation.

                   

                	
                  No

                   

                
	
                  Party
                    B

                   

                	
                  An
                    executed copy of the Pooling and Servicing Agreement.

                   

                	
                  Within
                    30 days after the date of this Agreement.

                   

                	
                  No

                   

                
	
                   

                  Party
                    A

                   

                	
                   

                  A
                    copy of the most recent annual report of Swiss Re containing
                    financial
                    statements certified by independent public accountants and prepared
                    in
                    accordance with Swiss law.

                   

                	
                   

                  Concurrently
                    with the execution and delivery of this Agreement and promptly
                    following
                    request by Party B thereafter

                   

                	
                   

                  Yes

                   

                

        

         

        Part
          4.

         

        Miscellaneous.

         

        
          	
                  (a)

                	
                  Addresses
                    for Notices.
                    For the purposes of Section 12(a) of this Agreement:
                    

                

        

         

        
          
            
            

          

          
            4

            
              

            

          

          
            
            

          

        

        Party
          A:

         

        Notices
          should be sent to the address of the relevant branch set out in the relevant
          Confirmation (as may be amended from time to time), provided that in the
          case of
          notices or communications relating to Section 5, 6, 7, 11 or 13 to, such
          notices
          should be sent to:

         

        Address:

        Swiss
          Re
          Financial Products Corporation 

        55
          East
          52nd Street

        New
          York,
          New York 10055

        Attention:
          Head of Operations

        Facsimile
          No. (917) 322-7201

         

        With
          a
          copy to 

        

        Swiss
          Re
          Financial Products Corporation

        55
          East
          52nd Street

        New
          York,
          New York 10055

        Attention:
          Legal Department

        Facsimile
          No.: (212) 317-5474

        

        Party
          B:

        

        HSBC
          Bank
          USA, National Association

        452
          Fifth
          Avenue

        New
          York,
          NY 10018

        Attn:
          Corporate Trust & Loan Agency - ACE 2006-NC2

        Fax:
          (212) 525-1300 

        

        With
          a
          copy to

        

        Wells
          Fargo Bank N.A.

        9062
          Old
          Annapolis Road

        Columbia,
          MD 21045

        ATTN:
          Client Manager - ACE 2006-NC2

        Facsimile
          No.: (410) 715-2380

        

        
          	
                  (b)

                	
                  Process
                    Agent. For
                    the purposes of Section 13(c) of this
                    Agreement:

                

        

         

        Party
          A
          appoints as its Process Agent: Not Applicable.

         

        Party
          B
          appoints as its Process Agent: Not Applicable.

         

        
          	
                  (c)

                	
                  Offices.
                    With respect to Party A, the provisions of Section 10(a) will
                    apply to
                    this Agreement.

                

        

         

        
          	
                  (d)

                	
                  Multibranch
                    Party.
                    For the purpose of Section 10(c) of this
                    Agreement:

                

        

         

        Party
          A
          is not a Multibranch Party. 

        Party
          B
          is not a Multibranch Party.

         

        
          	
                  (e)

                	
                  Calculation
                    Agent.
                    The Calculation Agent is Party A.

                

        

         

        
          	(f)	
                  Credit
                    Support Document. 

                

        

         

        
          
            
            

          

          
            5

            
              

            

          

          
            
            

          

        

        Credit
          Support Document means in relation to Party A: The Guaranty of Swiss Reinsurance
          Company (“Swiss Re”) dated as of the date hereof, and, in that event that Party
          A posts collateral under a Credit Support Annex or obtains a guarantee
          pursuant
          to Part 5(b) below, such Credit Support Annex or guarantee.

        

        Credit
          Support Document means in relation to Party B: Not Applicable.

         

        
          	
                  (g)

                	
                  Credit
                    Support Provider.

                

        

         

        Credit
          Support Provider means in relation to Party A: Swiss Reinsurance Company
          (“Swiss
          Re”) and, in that event that Party A obtains a guarantor pursuant to Part
          5(b)
          below, such guarantor.

        

        Credit
          Support Provider means in relation to Party B: Not Applicable.

         

        
          	
                  (h)

                	
                  Governing
                    Law.
                    This Agreement will be governed by and construed in accordance
                    with the
                    laws of the State of New York (without reference to choice of
                    law doctrine
                    other than New York General Obligations Law Sections 5-1401 and
                    5-1402).

                

        

         

        
          	
                  (i)

                	
                  Netting
                    of Payments.
                    Subparagraph (ii) of Section 2(c) of this Agreement will apply
                    to all
                    Transactions (in each case starting from the date of this
                    Agreement).

                

        

         

        
          	
                  (j)

                	
                  "Affiliate."
                    Each of Party A and Party B shall be deemed to have no Affiliates
                    for
                    purposes of this Agreement, including for purposes of Section
                    6(b)(ii).

                

        

         

        
          	
                  (k)

                	
                  Jurisdiction.
                    Section 13(b) is hereby amended by: (i) deleting in the second
                    line of
                    subparagraph (i) thereof the word "non-", (ii) deleting “; and” from the
                    end of subparagraph 1 and inserting “.” at the end of such provision, and
                    (iii) deleting the final paragraph
                    thereof.

                

        

         

        
          	
                  (l)

                	
                  Waiver
                    of Jury Trial.
                    Each party waives, to the fullest extent permitted by applicable
                    law, any
                    right it may have to a trial by jury in respect of any suit,
                    action or
                    proceeding relating to this Agreement or any Credit Support Document.
                    Each
                    party certifies (i) that no representative, agent or attorney
                    of the other
                    party or any Credit Support Provider has represented, expressly
                    or
                    otherwise, that such other party would not, in the event of such
                    a suit,
                    action or proceeding, seek to enforce the foregoing waiver and
                    (ii)
                    acknowledges that it and the other party have been induced to
                    enter into
                    this Agreement and provide for any Credit Support Document, as
                    applicable,
                    by, among other things, the mutual waivers and certifications
                    in this
                    Section.

                

        

         

        
          	
                  (m)

                	
                  Consent
                    to Recording.
                    Each party (i) consents to the monitoring or recording, at any
                    time and
                    from time to time, by the other party of any and all communications
                    between officers or employees of the parties, (ii) waives any
                    further
                    notice of such monitoring or recording, and (iii) agrees to notify
                    (and,
                    if required by law, obtain the consent of) its officers and employees
                    with
                    respect to such monitoring or recording. Any such recording may
                    be
                    submitted in evidence to any court or in any Proceeding for the
                    purpose of
                    establishing any matters pertinent to this Agreement or any
                    Transaction.

                

        

         

        
          	
                  (n)

                	
                  Severability.
                    If
                    any term, provision, covenant, or condition of this Agreement,
                    or the
                    application thereof to any party or circumstance, shall be held
                    to be
                    illegal, invalid or unenforceable (in whole or in part) for any
                    reason,
                    the remaining terms, provisions, covenants and conditions hereof
                    shall
                    continue in full force and effect as if this Agreement had been
                    executed
                    with the illegal, invalid or unenforceable portion eliminated,
                    so long as
                    this Agreement as so modified continues to express, without material
                    change, the original intentions of the parties as to the subject
                    matter of
                    this Agreement and the deletion of such portion of this Agreement
                    will not
                    substantially impair the respective benefits or expectations
                    of the
                    parties to this Agreement.

                

        

         

        
          
            
            

          

          
            6

            
              

            

          

          
            
            

          

        

        The
          parties shall endeavor to engage in good faith negotiations to replace
          any
          illegal, invalid or unenforceable term, provision, covenant or condition
          with a
          valid or enforceable term, provision, covenant or condition, the economic
          effect
          of which comes as close as possible to that of the illegal, invalid or
          unenforceable term, provision, covenant or condition.

         

        Part
          5.

         

        Other
          Provisions.

         

        
          	
                  (a)

                	
                  Definitions. 

                

        

         

        This
          Agreement, including each Confirmation and each Swap Transaction, is subject
          to
          the 2000 ISDA Definitions, as amended, supplemented, updated, and superseded
          from time to time (the "Definitions"), as published by the International
          Swaps
          and Derivatives Association, Inc. ("ISDA") and will be governed in all
          respects
          by the Definitions (except that references to "Swap Transactions" shall
          be
          deemed to be references to "Transactions"). The Definitions are incorporated
          by
          reference in, and made part of, this Agreement and each Confirmation as
          if set
          forth in full in this Agreement and such Confirmations. In the event of
          any
          inconsistency between the provisions of this Agreement and the Definitions,
          this
          Agreement will prevail (and, in the event of any inconsistency between
          any
          Confirmation and the Definitions, the Confirmation will control). Any reference
          in a Confirmation to any Definitions which are amended or supplemented
          in this
          Schedule shall be deemed to be a reference to such Definitions as so amended
          or
          supplemented, unless the Confirmation states, by specific reference to
          any such
          amendment or supplement, that such amendment or supplement will not apply
          in
          respect of the Transaction to which such Confirmation relates. Any capitalized
          terms used but not otherwise defined in this Agreement shall have the meanings
          assigned to them (or incorporated by reference) in the Pooling and Servicing
          Agreement. 

         

        
          	
                  (b)

                	
                  Downgrade
                    Provisions. 

                

        

        

        Ratings
          Downgrade Event.
          It
          shall be a “Ratings Downgrade Event” if at any time Party A fails to meet the
          Required Rating (as such term is defined below). If a Ratings Downgrade
          Event
          occurs, then, within thirty (30) days following the Ratings Downgrade Event
          (unless, within thirty (30) days of such Ratings Downgrade Event, each
          of
          S&P, Moody’s and any other rating agency then rating the Certificates and
          any notes backed by the Certificates (“Notes”) (each such agency, a “Rating
          Agency”) has reconfirmed the ratings of the Certificates and any Notes which
          were in effect immediately prior to such Ratings Downgrade Event), Party
          A
          shall, at its own expense and subject to the Rating Agency Condition, take
          one
          of the following four actions: 

         

        
          	 	
                  (A)
                    

                	
                  Replace
                    Itself:
                    Find a party to whom all of Party A's interests and obligations
                    under this
                    Agreement shall be assigned at no cost to Party B, and following
                    which
                    Party A shall be released from all further obligations under
                    this
                    Agreement, or

                

        

        

        
          	 	
                  (B)
                    

                	
                  Post
                    Collateral:
                    deliver collateral within thirty (30) days of such Ratings Downgrade
                    Event, pursuant to an ISDA Credit Support Annex (subject to New
                    York Law)
                    and concurrently
                    with such delivery of Eligible Collateral, Party A shall cause
                    its counsel
                    to deliver an opinion as to the enforceability of Counterparty’s security
                    interest in such Eligible Collateral (i.e.
                    that, notwithstanding Party A's insolvency, the collateral will
                    be
                    available to meet swap obligations free from any preference claim
                    or
                    moratorium) that
                    satisfies the Rating Agency Condition,
                    or

                

        

        

        
          
            
            

          

          
            7

            
              

            

          

          
            
            

          

        

        
          	 	
                  (C)
                    

                	
                  Obtain
                    a Guaranty:
                    Obtain a guaranty of Party A’s obligations under this Transaction from a
                    third party that meets or exceeds the Approved Ratings Threshold,
                    in form
                    and substance (the sufficiency of such guaranty subject to approval
                    by
                    each Rating Agency) or

                

        

        

        
          	 	
                  (D)
                    

                	
                  Other
                    Arrangement with Ratings Agency Approval:
                    Establish any other arrangement which will be sufficient to restore
                    the
                    immediately prior ratings of the Certificates and any Notes.
                    

                

        

        

        If
          Party
          A has failed to take one of the aforementioned actions within thirty (30)
          days
          of the Ratings Downgrade Event, such failure shall constitute an Additional
          Termination Event with Party A as the sole Affected Party. 

        

        “Required
          Rating”
means,
          with respect to Party A or an entity guaranteeing the obligations of Party
          A
          hereunder, (x) either (i) if Party A or such entity has only a long-term
          rating
          by Moody’s, a long-term senior, unsecured debt obligation rating, credit rating
          or other similar rating (as the case may be, the “Long-Term Rating”) of at least
“Aa3” by Moody’s and if rated “Aa3” by Moody’s is not on negative credit watch
          by Moody’s or (ii) if Party A or such entity has a Long-Term Rating and a
          short-term rating by Moody’s, a Long-Term Rating of at least “A1” by Moody’s and
          a short-term rating of “P-1” by Moody’s and, in each case, such rating is not on
          negative credit watch by Moody’s, and (y) (i) a short-term rating of at least
“A-1” by S&P or (ii) if Party A or such entity does not have a short-term
          rating by S&P, a Long-Term Rating of at least “A+” by S&P.

        

        Notwithstanding
          the foregoing, within ten (10) Business Days upon the occurrence of either
          of
          the following conditions, Party A shall find a party to whom all of Party
          A's
          interests and obligations under this Agreement shall be assigned, subject
          to the
          Rating Agency Condition and at Party A’s own expense, and following which Party
          A shall be released from all further obligations under this
          Agreement:

         

        (1) Party
          A’s
          Short Term rating is reduced below “A-3”
by
          S&P or Party A’s long-term unsecured and unsubordinated debt rating (its
“Long Term rating”) is reduced below “BBB-”
by
          S&P or 

         

        (2) S&P
          or Moody’s withdraws its ratings of Party A. 

         

        “Rating
          Agency Condition”
means,
          with respect to any particular proposed act or omission to act hereunder
          that
          the party acting or filing to act must consult with each Rating Agency
          and
          receive from each Rating Agency a prior written confirmation that the proposed
          action or inaction would not cause a downgrade or withdrawal of the then-current
          rating of any Certificates or Notes.

         

        
          	
                  (c)

                	
                  Section
                    3(a) of this Agreement is hereby amended to include the following
                    additional representations after paragraph
                    3(a)(v):

                

        

         

        (vi)
          Eligible
          Contract Participant.
          It is an
          "eligible contract participant" as defined in section 1a(12) of the U.S.
          Commodity Exchange Act.

         

        (vii)
          Individual
          Negotiation.
          This
          Agreement and each Transaction hereunder is subject to individual negotiation
          by
          the parties.

         

        (viii)
          Relationship
          between Party A and Party B.
          Subject
          as provided in Part 5(g), each of Party A and Party B will be deemed to
          represent to the other on the date on which it enters into a Transaction
          or an
          amendment thereof that (absent a written agreement between Party A and
          Party B
          that expressly imposes affirmative obligations to the contrary for that
          Transaction):

         

        
          
            
            

          

          
            8

            
              

            

          

          
            
            

          

        

        (1) Principal.
          It is
          acting as principal and not as agent when entering into this Agreement
          and each
          Transaction. 

         

        (2) Non-Reliance.
          It
          is
          acting for its own account and it has made its own independent decisions
          to
          enter into that Transaction and as to whether that Transaction is appropriate
          or
          proper for it based upon its own judgment and upon advice from such advisors
          as
          it has deemed necessary. It is not relying on any communication (written
          or
          oral) of the other party as investment advice or as a recommendation to
          enter
          into that Transaction; it being understood that information and explanations
          related to the terms and conditions of a Transaction shall not be considered
          investment advice or a recommendation to enter into that Transaction. No
          communication (written or oral) received from the other party shall be
          deemed to
          be an assurance or guarantee as to the expected results of that
          Transaction.

         

        (3) Evaluation
          and Understanding. It
          is
          capable of evaluating and understanding (on its own behalf or through
          independent professional advice), and understands and accepts, the terms,
          conditions and risks of this Agreement and each Transaction hereunder.
          It is
          also capable of assuming, and assumes, all financial and other risks of
          this
          Agreement and each Transaction hereunder. 

         

        (4) Status
          of Parties. The
          other
          party is not acting as a fiduciary or an advisor for it in respect of that
          Transaction. 

         

        
          	
                  (d)

                	
                  Section
                    4 is hereby amended by adding the following new agreement:
                    

                

        

         

        (f)
          Actions
          Affecting Representations. Party
          B
          agrees not to take any action during the term of this Agreement or any
          Transaction hereunder that renders or could render any of the representations
          and warranties in this Agreement untrue, incorrect, or incomplete, and
          if any
          event or condition occurs that renders or could render any such representation
          untrue, incorrect, or incomplete, Party B will immediately give written
          notice
          thereof to Party A.

         

        
          	
                  (e)

                	
                  Section
                    1(c). For
                    purposes of Section 1(c) of the Agreement, the Transactions with
                    Reference
                    Number 1055739 and 1055750 shall be the sole Transactions under
                    the
                    Agreement. 

                

        

         

        
          	
                  (f)

                	
                  Trustee
                    Administrator Capacity. It
                    is expressly understood and agreed by the parties hereto that
                    (i) this
                    Agreement is executed and delivered by HSBC Bank USA, National
                    Association, not individually, but solely as Supplemental Interest
                    Trust
                    Trustee on behalf of the Supplemental Interest Trust with respect
                    to the
                    ACE Securities Corp. Home Equity Loan Trust, Series 2006-NC2
                    Asset Backed
                    Pass Through Certificates, in the exercise of the powers and
                    authority
                    conferred and vested in it under the Pooling and Servicing Agreement,
                    (ii)
                    each of the representations, undertakings and agreements herein
                    made on
                    the part of Supplemental Interest Trust is made and intended
                    not as
                    personal representations, undertakings and agreements by HSBC
                    Bank USA, National Association, but is made and intended for
                    the purpose
                    of binding only the Supplemental Interest Trust, (iii) nothing
                    herein
                    contained shall be construed as creating any liability on the
                    part of
                    HSBC
                    Bank USA, National Association individually or personally, to
                    perform any
                      covenant either expressed or implied contained herein, all
                    such liability,
                    if any, being expressly waived by the parties hereto and by any
                    Person
                    claiming by, through or under the parties hereto and (iv) under
                    no
                    circumstances shall HSBC
                    Bank USA, National Association be personally liable for the payment
                    of any
                    indebtedness or expenses of the Supplemental Interest Trust or
                    be liable
                    for the breach or failure of any obligation, representation,
                    warranty or
                    covenant made or undertaken by Party B under this Agreement or
                    any other
                    related documents.

                

        

         

        
          
            
            

          

          
            9

            
              

            

          

          
            
            

          

        

        
          	
                  (h)

                	
                  Proceedings.
                    Without impairing any right afforded to it under the Pooling
                    and Servicing
                    Agreement as a third party beneficiary, Party A shall not institute
                    against or cause any other person to institute against, or join
                    any other
                    person in instituting against the Depositor, Party B, or the
                    trust created
                    pursuant to the Pooling and Servicing Agreement, any bankruptcy,
                    reorganization, arrangement, insolvency or liquidation proceedings,
                    or
                    other proceedings under any federal or state bankruptcy, dissolution
                    or
                    similar law, for a period of one year and one day, or
                    if longer the applicable preference period then in effect,
                    following indefeasible payment in full of the Certificates and
                    any Notes.
                    Nothing
                    shall preclude, or be deemed to stop, Party A (i) from taking
                    any action
                    prior to the expiration of the aforementioned one year and one
                    day period,
                    or if longer the applicable preference period then in effect,
                    in (A) any
                    case or proceeding voluntarily filed or commenced by Party B
                    or (B) any
                    involuntary insolvency proceeding filed or commenced by a Person
                    other
                    than Party A, or (ii) from commencing against Party B any legal
                    action
                    which is not a bankruptcy, reorganization, arrangement, insolvency,
                    moratorium, liquidation or similar proceeding.

                

        

         

        
          	
                  (i)

                	
                  Change
                    of Account.
                    Section 2(b) of this Agreement is hereby amended by the addition
                    of the
                    following after the word "delivery" in the first line
                    thereof:-

                

        

         

        "to
          another account in the same legal and tax jurisdiction as the original
          account"

        

        
          	
                  (j)

                	
                  Pooling
                    and Servicing Agreement.

                

        

         

        Party
          B
          shall not enter into any amendment to Section of the Pooling and Servicing
          Agreement which would have a material and adverse effect to the rights
          and/or
          obligations of Party A without the prior written consent of the Party
          A.

        

        
          	
                  (k)

                	
                  Set-off.
                    Notwithstanding
                    any provision of this Agreement or any other existing or future
                    agreements, each of Party A and Party B irrevocably waives as
                    to itself
                    any and all contractual rights it may have to set off, net, recoup
                    or
                    otherwise withhold or suspend or condition its payment or performance
                    of
                    any obligation to the other party under this Agreement against
                    any
                    obligation of one party hereto to the other party hereto arising
                    outside
                    of this Agreement (which Agreement includes without limitation,
                    the Master
                    Agreement to which this Schedule is attached, this Schedule and
                    the
                    Confirmation). The provisions for set-off set forth in Section
                    6(e) of
                    this Agreement shall not apply for purposes of this
                    Transaction.

                

        

         

        
          
            	(l)	
                    Notice
                      of Certain Events or Circumstances.
                      Each party agrees, upon learning of the occurrence or existence
                      of any
                      event or condition that constitutes (or that with the giving
                      of notice or
                      passage of time or both would constitute) an Event of Default
                      or
                      Termination Event with respect to such party, promptly to give
                      the other
                      party notice of such event or condition (or, in lieu of giving
                      notice of
                      such event or condition in the case of an event or condition
                      that with the
                      giving of notice or passage of time or both would constitute
                      an Event of
                      Default or Termination Event with respect to the party, to
                      cause such
                      event or condition to cease to exist before becoming an Event
                      of Default
                      or Termination Event); provided
                      that failure to provide notice of such event or condition pursuant
                      to this
                      Part 5(l) shall not constitute an Event of Default or a Termination
                      Event.

                  

          

        

         

        
          	(m)	
                  Regarding
                    Party A.
                    Party
                    B acknowledges and agrees that Party A has had and will have
                    no
                    involvement in and, accordingly Party A accepts no responsibility
                    for: (i)
                    the establishment, structure, or choice of assets of Party B;
                    (ii) the
                    selection of any person
                    performing services for or acting on behalf of Party B; (iii)
                    the
                    selection of Party A as the Counterparty;
                    (iv) the terms of the Certificates; (v) the preparation of or
                    passing on
                    the disclosure and other information contained in any offering
                    circular
                    for the Certificates, the Pooling and Servicing Agreement, or
                    any other
                    agreements or documents used by Party B or any other party in
                    connection
                    with the marketing and sale of the Certificates other than disclosure
                    relating to it included in the Prospectus Supplement; (vi) the
                    ongoing
                    operations and administration of Party B, including the furnishing
                    of any
                    information to Party B which is not specifically required under
                    this
                    Agreement; or (vii) any other aspect of Party B’s
                    existence.

                

        

         

        
          
            
            

          

          
            10

            
              

            

          

          
            
            

          

        

        
          	(n)	
                  Amendments.
                    This Agreement will not be amended unless Party B shall have
                    received
                    prior written confirmation from each of the Rating Agencies that
                    such
                    amendment will not cause such Rating Agency to downgrade or withdraw
                    its
                    then-current ratings of any outstanding Certificates
                    or Notes. 

                

        

         

        
          	
                  (o)

                	
                  Gross-up.
                    Section 2(d)(i)(4) shall only apply in the event Party A is “X” and Party
                    B is “Y” thereunder.

                

        

         

        
          	
                  (p)

                	
                  Non-Recourse.
                    Notwithstanding any provision herein to the contrary, the obligations
                    of
                    Party B hereunder are limited recourse obligations of Party B,
                    payable
                    solely from the Supplemental Interest Trust and the proceeds
                    thereof, in
                    accordance with the terms of the Pooling and Servicing Agreement.
                    In the
                    event that the Supplemental Interest Trust and proceeds thereof
                    should be
                    insufficient to satisfy all claims outstanding and following
                    the
                    realization of the Supplemental Interest Trust and the proceeds
                    thereof,
                    any claims against or obligations of Party B under this Agreement
                    still
                    outstanding shall be extinguished and thereafter not revive.
                    Party B shall
                    not have liability for any failure or delay in making a payment
                    hereunder
                    to Party A due to any failure or delay in receiving amount in
                    the
                    Supplemental Interest Trust from the trust created pursuant to
                    the Pooling
                    and Servicing Agreement.

                

        

         

        
          	
                  (q)

                	
                  Transfer.
                    Section 7 is hereby amended by adding in the third line thereof
                    after the
                    clause "that: -" the words "provided
                    that the Rating Agency Condition is
                    satisfied."

                

        

         

        
          	
                  (r)

                	
                  Compliance
                    with Regulation AB.
                    (i)
                    For purposes of Item 1115 of Subpart 229.1100 - Asset Backed
                    Securities
                    (Regulation AB) (17 C.F.R. ss.ss.229.1100 - 229.1123) (“Regulation AB”)
                    under the Securities Act of 1933, as amended, and the Securities
                    Exchange
                    Act of 1934, as amended (the “Exchange Act”), as amended and interpreted
                    by the Securities and Exchange Commission and its staff, if the
                    Depositor
                    or Party B makes a determination, acting reasonably and in good
                    faith,
                    that (x) the applicable “significance percentage” with respect to this
                    Agreement has been reached, and (y) it has a reporting obligation
                    under
                    the Exchange Act, then Party A shall, within ten (10) calendar
                    days after
                    notice to that effect, at its sole expense, take one of the following
                    actions (each subject to satisfaction of the Rating Agency Condition):
                    (1)
                    provide (including, if permitted by Regulation AB, provision
                    by reference
                    to reports filed pursuant to the Exchange Act or otherwise publicly
                    available information): (A) the financial data required by Item
                    301 of
                    Regulation S-K (17 C.F.R. §229.301), pursuant to Item 1115(b)(1); (B)
                    financial statements meeting the requirements of Regulation S-X
                    (17 C.F.R.
                    §§210.1-01 through 210.12-29, but excluding 17 C.F.R. ss. 210.3-05
                    and
                    Article 11 of Regulation S-X (17 C.F.R. ss. ss. 210.11-01 through
                    210.11-03)), pursuant to Item 1115(b)(2); or (C) such other financial
                    information as may at the time be required or permitted to be
                    provided in
                    satisfaction of the requirements of Item 1115(b), together with
                    accountants consents and/or a procedure letter relating thereto;
                    or (2)
                    secure another entity able to comply with the requirements of
                    Item 1115(b)
                    of Regulation AB to replace Party A as party to this Agreement,
                    on
                    substantially similar terms, the debt rating of which entity
                    (or credit
                    support provider therefor) meets or exceeds the applicable requirements
                    of
                    the applicable Rating Agencies.

                

        

        

        (ii) For
          so
          long as the aggregate significance percentage is 10% or more, Party A shall
          provide any updates to the information provided pursuant to clause (i)(1)
          above
          to the Depositor within five (5) Business Days following availability thereof
          (but in no event more than 45 days after the end of each of Party’s fiscal
          quarter for any quarterly update, and in no event more than 90 days after
          the
          end of each of Party A’s fiscal year for any annual update).

        

        (iii)
          All
          information provided pursuant to clauses (i)(1) and (ii) shall be in a
          form
          suitable for conversion to the format required for filing by the Deposition
          with
          the Commission via the Electronic Data Gathering and Retrieval System (EDGAR).
          In addition, any such information, if audited, shall be accompanied by
          any
          necessary auditor’s consents or, if such information is unaudited, shall be
          accompanied by an appropriate agreed-upon procedures letter from Party
          A’s
          accountants. If permitted by Regulation AB, any such information may be
          provided
          by reference to or incorporation by reference from reports filed pursuant
          to the
          Exchange Act.

        

        
          
            
            

          

          
            11

            
              

            

          

          
            
            

          

        

        
          	
                  (s)

                	
                  Third
                    Party Beneficiary. The
                    Depositor shall be an express third party beneficiary of this
                    Agreement as
                    if a party hereto to the extent of the Depositor’s rights explicitly
                    specified herein.

                

        

        

        
          	
                  (t)

                	
                  Fully-Paid
                    Transactions. Notwithstanding
                    the terms of Sections 5 and 6 of the Agreement, if Party B has
                    satisfied
                    its payment obligations under Section 2(a)(i) of the Agreement,
                    then
                    unless Party A is required pursuant to appropriate proceedings
                    to return
                    to Party B or otherwise returns to Party B upon demand of Party
                    B any
                    portion of such payment, (a) the occurrence of an event described
                    in
                    Section 5(a) of the Agreement with respect to Party B shall not
                    constitute
                    an Event of Default or Potential Event of Default with respect
                    to Party B
                    as the Defaulting Party and (b) Party A shall be entitled to
                    designate an
                    Early Termination Date pursuant to Section 6 of the Agreement
                    only as a
                    result of a Termination Event set forth in either Section 5(b)(i)
                    or
                    Section 5(b)(ii) of the Agreement with respect to Party A as
                    the Affected
                    Party or Section 5(b)(iii) of the Agreement with respect to Party
                    A as the
                    Burdened Party. For purposes of the Transaction to which this
                    Agreement
                    relates, Party B’s only obligation under Section 2(a)(i) of the Agreement
                    is to pay the Fixed Amount on the Fixed Rate Payer Payment
                    Date.

                

        

        

        
          
            
            

          

          
            12

            
              

            

          

          
            
            

          

        

        IN
          WITNESS WHEREOF,
          the
          parties have executed this document by their duly authorized officers with
          effect from the date so specified on the first page hereof.

         

         

        
          	SWISS
                  RE FINANCIAL PRODUCTS CORPORATION	and	HSBC
                  Bank USA, National Association, not individually, but solely as
                  Supplemental Interest Trust Trustee on behalf of the Supplemental
                  Interest
                  Trust with respect to the ACE Securities Corp. Home Equity Loan
                  Trust,
                  Series 2006-NC2 Asset Backed Pass Through
                  Certificates.
	
                  ("Party
                    A")

                   

                	 	
                  ("Party
                    B")

                   

                
	
                  By:
                    _______________________

                  Name:
                    

                  Title:
                    

                  Date:
                    September 15, 2006

                	 	
                  By:
                    _______________________

                  Name:

                  Title:

                  Date:
                    September 15, 2006

                

        

        

         

        

         

        (Signature
          Page for ISDA Schedule - Transaction Reference Numbers 1055739 and
          1055750)

         

        
          
            
            

          

          
            13

            
              

            

          

          
            
            

          

        

      

    

     

    SCHEDULE
      1

    

    MORTGAGE
      LOAN SCHEDULE

    

    [PROVIDED
      UPON REQUEST]

     

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SCHEDULE
      2

    

    PREPAYMENT
      CHARGE SCHEDULE

    

    [PROVIDED
      UPON REQUEST]

    

     

    

 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SCHEDULE
      3

    

    [RESERVED]

     

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SCHEDULE
      4

    

    STANDARD
      FILE LAYOUT - DELINQUENCY REPORTING AND REALIZED LOSSES AND GAINS

    

    

    Exhibit
      1 : Standard
      File Layout - Delinquency Reporting

    

    
      	
              Column
                Name

            	
              Description

            	
              Decimal

            	
              Format
                Comment

            
	
              SER_INVESTOR_NBR

            	
              A
                value assigned by the Servicer to define a group of loans.

            	
               

            	
              Text
                up to 10 digits

            
	
              LOAN_NBR

            	
              A
                unique identifier assigned to each loan by the investor.

            	
               

            	
              Text
                up to 10 digits

            
	
              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

            
	
              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)

            
	
              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 ($)

            
	
              NOTE_INT_RATE

            	
              The
                loan interest rate as reported by the Servicer.

            	
              4

            	
              Max
                length of 6

            
	
              NET_INT_RATE

            	
              The
                loan gross interest rate less the service fee rate as reported by
                the
                Servicer.

            	
              4

            	
              Max
                length of 6

            
	
              SERV_FEE_RATE

            	
              The
                servicer's fee rate for a loan as reported by the Servicer.
                

            	
              4

            	
              Max
                length of 6

            
	
              SERV_FEE_AMT

            	
              The
                servicer's fee amount for a loan as reported by the Servicer.
                

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
              NEW_PAY_AMT

            	
              The
                new loan payment amount as reported by the Servicer. 

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
              NEW_LOAN_RATE

            	
              The
                new loan rate as reported by the Servicer. 

            	
              4

            	
              Max
                length of 6

            
	
              ARM_INDEX_RATE

            	
              The
                index the Servicer is using to calculate a forecasted
                rate.

            	
              4

            	
              Max
                length of 6

            
	
              ACTL_BEG_PRIN_BAL

            	
              The
                borrower's actual principal balance at the beginning of the processing
                cycle.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
              ACTL_END_PRIN_BAL

            	
              The
                borrower's actual principal balance at the end of the processing
                cycle.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
              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

            
	
              SERV_CURT_AMT_1

            	
              The
                first curtailment amount to be applied.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
              SERV_CURT_DATE_1

            	
              The
                curtailment date associated with the first curtailment amount.
                

            	
               

            	
              MM/DD/YYYY

            
	
              CURT_ADJ_
                AMT_1

            	
              The
                curtailment interest on the first curtailment amount, if
                applicable.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
              SERV_CURT_AMT_2

            	
              The
                second curtailment amount to be applied.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
              SERV_CURT_DATE_2

            	
              The
                curtailment date associated with the second curtailment
                amount.

            	
               

            	
              MM/DD/YYYY

            
	
              CURT_ADJ_
                AMT_2

            	
              The
                curtailment interest on the second curtailment amount, if
                applicable.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
              SERV_CURT_AMT_3

            	
              The
                third curtailment amount to be applied.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
              SERV_CURT_DATE_3

            	
              The
                curtailment date associated with the third curtailment
                amount.

            	
               

            	
              MM/DD/YYYY

            
	
              CURT_ADJ_AMT_3

            	
              The
                curtailment interest on the third curtailment amount, if
                applicable.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
              PIF_AMT

            	
              The
                loan "paid in full" amount as reported by the Servicer.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
              PIF_DATE

            	
              The
                paid in full date as reported by the Servicer.

            	
               

            	
              MM/DD/YYYY

            
	
               

            	
               

            	
               

            	
              Action
                Code Key: 15=Bankruptcy, 30=Foreclosure, , 60=PIF, 63=Substitution,
                65=Repurchase,70=REO 

            
	
              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 ($)

            
	
              SOLDIER_SAILOR_ADJ_AMT

            	
              The
                Soldier and Sailor Adjustment amount, if applicable.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
              NON_ADV_LOAN_AMT

            	
              The
                Non Recoverable Loan Amount, if applicable.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
              LOAN_LOSS_AMT

            	
              The
                amount the Servicer is passing as a loss, if applicable.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
              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 ($)

            
	
              SCHED_END_PRIN_BAL

            	
              The
                scheduled principal balance due to investors at the end of a processing
                cycle.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
              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 ($)

            
	
              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 ($)

            
	
              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 ($)

            
	
              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 ($)

            
	
              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 ($)

            
	
              PREPAY_PENALTY_
                WAIVED

            	
              The
                prepayment penalty amount for the loan waived by the
                servicer.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
               

            	
               

            	
               

            	
               

            
	
              MOD_DATE

            	
              The
                Effective Payment Date of the Modification for the loan.

            	
               

            	
              MM/DD/YYYY

            
	
              MOD_TYPE

            	
              The
                Modification Type.

            	
               

            	
              Varchar
                - value can be alpha or numeric

            
	
              DELINQ_P&I_ADVANCE_AMT

            	
              The
                current outstanding principal and interest advances made by
                Servicer.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Standard
      File Layout - Delinquency Reporting

    

     

    REPORTING
      DATA FOR DEFAULTED LOANS 

     

    Data
      must
      be submitted to Wells Fargo Bank in an Excel
      spreadsheet format with fixed field names and data type. The Excel
      spreadsheet should be used as a template consistently every month when
      submitting data. 

     

    
      	 	 	 
	
              Table:
                Delinquency 

            	 	 
	
              Name
                

            	
              Type
                

            	
              Size
                

            
	
              Servicer
                Loan # 

            	
              Number
                

            	
              8
                

            
	 	
              (Double)
                

            	 
	
              Investor
                Loan # 

            	
              Number
                

            	
              8
                

            
	 	
              (Double)
                

            	 
	
              Borrower
                Name 

            	
              Text
                

            	
              20
                

            
	
              Address
                

            	
              Text
                

            	
              30
                

            
	
              State
                

            	
              Text
                

            	
              2
                

            
	
              Due
                Date 

            	
              Date/Time
                

            	
              8
                

            
	
              Action
                Code 

            	
              Text
                

            	
              2
                

            
	
              FC
                Received 

            	
              Date/Time
                

            	
              8
                

            
	
              File
                Referred to Atty 

            	
              Date/Time
                

            	
              8
                

            
	
              NOD
                

            	
              Date/Time
                

            	
              8
                

            
	
              Complaint
                Filed 

            	
              Date/Time
                

            	
              8
                

            
	
              Sale
                Published 

            	
              Date/Time
                

            	
              8
                

            
	
              Target
                Sale Date 

            	
              Date/Time
                

            	
              8
                

            
	
              Actual
                Sale Date 

            	
              Date/Time
                

            	
              8
                

            
	
              Loss
                Mit Approval Date 

            	
              Date/Time
                

            	
              8
                

            
	
              Loss
                Mit Type 

            	
              Text
                

            	
              5
                

            
	
              Loss
                Mit Estimated Completion 

            	
              Date/Time
                

            	
              8
                

            
	
              Date
                

            	 	 
	
              Loss
                Mit Actual Completion Date 

            	
              Date/Time
                

            	
              8
                

            
	
              Loss
                Mit Broken Plan Date 

            	
              Date/Time
                

            	
              8
                

            
	
              BK
                Chapter 

            	
              Text
                

            	
              6
                

            
	
              BK
                Filed Date 

            	
              Date/Time
                

            	
              8
                

            
	
              Post
                Petition Due 

            	
              Date/Time
                

            	
              8
                

            
	
              Motion
                for Relief 

            	
              Date/Time
                

            	
              8
                

            
	
              Lift
                of Stay 

            	
              Date/Time
                

            	
              8
                

            
	
              RFD
                

            	
              Text
                

            	
              10
                

            
	
              Occupant
                Code 

            	
              Text
                

            	
              10
                

            
	
              Eviction
                Start Date 

            	
              Date/Time
                

            	
              8
                

            
	
              Eviction
                Completed Date 

            	
              Date/Time
                

            	
              8
                

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              List
                Price 

            	
              Currency
                

            	
              8
                

            
	
              List
                Date 

            	
              Date/Time
                

            	
              8
                

            
	
              Accepted
                Offer Price 

            	
              Currency
                

            	
              8
                

            
	
              Accepted
                Offer Date 

            	
              Date/Time
                

            	
              8
                

            
	
              Estimated
                REO Closing Date 

            	
              Date/Time
                

            	
              8
                

            
	
              Actual
                REO Sale Date

            	
              Date/Time

            	
              8

            

    

    

    • Items
      in bold are MANDATORY FIELDS. We must receive information in those fields every
      month in order for your file to be accepted.
      

     

    The
      Action Code Field should show the applicable numeric code to indicate that
      a
      special action is being taken. The Action Codes are the following: 

     

    
      	 	
              12-Relief
                Provisions 

              15-Bankruptcy/Litigation
                

              20-Referred
                for Deed-in-Lieu 

              30-Referred
                fore Foreclosure 

              60-Payoff
                

              65-Repurchase
                

              70-REO-Held
                for Sale 

              71-Third
                Party Sale/Condemnation 

              72-REO-Pending
                Conveyance-Pool Insurance claim filed

            

    

     

     

    Wells
      Fargo Bank will accept alternative Action Codes to those above, provided that
      the Codes are consistent with industry standards. If Action Codes other than
      those above are used, the Servicer must supply Wells Fargo Bank with a
      description of each of the Action Codes prior to sending the file. 

     

    Description
      of Action Codes: 

     

    Action
      Code 12
      - To
      report a Mortgage Loan for which the Borrower has been granted relief for curing
      a delinquency. The Action Date is the date the relief is expected to end. For
      military indulgence, it will be three months after the Borrower’s discharge from
      military service. 

     

    Action
      Code 15
      - To
      report the Borrower’s filing for bankruptcy or instituting some other type of
      litigation that will prevent or delay liquidation of the Mortgage Loan. The
      Action Date will be either the date that any repayment plan (or forbearance)
      instituted by the bankruptcy court will expire or an additional date by which
      the litigation should be resolved. 

     

    Action
      Code 20
      - To
      report that the Borrower has agreed to a deed-in-lieu or an assignment of the
      property. The Action Date is the date the Servicer decided to pursue a
      deed-in-lieu or the assignment. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Action
      Code 30
      - To
      report that the decision has been made to foreclose the Mortgage Loan. The
      Action Date is the date the Servicer referred the case to the foreclosure
      attorney.

    

    Action
      Code 60
      - To
      report that a Mortgage Loan has been paid in full either at, or prior to,
      maturity. The Action Date is the date the pay-off funds were remitted to the
      Master Servicer. 

     

    Action
      Code 65
      - To
      report that the Servicer is repurchasing the Mortgage Loan. The Action Date
      is
      the date the repurchase proceeds were remitted to the Master Servicer.

     

    Action
      Code 70
      - To
      report that a Mortgage Loan has been foreclosed or a deed-in-lieu of foreclosure
      has been accepted, and the Servicer, on behalf of the owner of the Mortgage
      Loan, has acquired the property and may dispose of it. The Action Date is the
      date of the foreclosure sale or, for deeds-in-lieu, the date the deed is
      recorded on behalf of the owner of the Mortgage Loan. 

     

    Action
      Code 71
      - To
      report that a Mortgage Loan has been foreclosed and a third party acquired
      the
      property, or a total condemnation of the property has occurred. The Action
      Date
      is the date of the foreclosure sale or the date the condemnation award was
      received. 

     

    Action
      Code 72
      - To
      report that a Mortgage Loan has been foreclosed, or a deed-in-lieu has been
      accepted, and the property may be conveyed to the mortgage insurer and the
      pool
      insurance claim has been filed. The Action Date is the date of the foreclosure
      sale, or, for deeds-in-lieu, the date of the deed for conventional mortgages.
      

     

    The
      Loss
      Mit Type field should show the approved Loss Mitigation arrangement. The
      following are acceptable: 

     

    
      	 	
              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
                

            

    

     

     

    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. The
      acceptable codes are: 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Mortgagor
      

    Tenant
      

    Unknown
      

    Vacant
      

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Exhibit
      3A: Calculation
      of Realized Loss/Gain Form 332

    

     

    REALIZED
      LOSS CALCULATION INFORMATION 

     

    WELLS
      FARGO BANK, N.A. Form 332

     

    

    Calculation
      of Realized Loss 

     

    Purpose
      

     

    To
      provide the Servicer with a form for the calculation of any Realized Loss (or
      gain) as a result of a Mortgage Loan having been foreclosed and Liquidated.
      

     

    Distribution
      

     

    The
      Servicer will prepare the form in duplicate and send the original together
      with
      evidence of conveyance of title and appropriate supporting documentation to
      the
      Master Servicer with the Monthly Accounting Reports which supports the Mortgage
      Loan’s removal from the Mortgage Loan Activity Report. The Servicer will retain
      the duplicate for its own records. 

     

    Due
      Date 

     

    With
      respect to any liquidated Mortgage Loan, the form will be submitted to the
      Master Servicer no later than the date on which statements are due to the Master
      Servicer under Section 4.02 of this Agreement (the “Statement Date”) in the
      month following receipt of final liquidation proceeds and supporting
      documentation relating to such liquidated Mortgage Loan; provided, that if
      such
      Statement Date is not at least 30 days after receipt of final liquidation
      proceeds and supporting documentation relating to such liquidated Mortgage
      Loan,
      then the form will be submitted on the first Statement Date occurring after
      the
      30th
      day
      following receipt of final liquidation proceeds and supporting documentation.
      

     

    Preparation
      Instructions 

     

    The
      numbers on the form correspond with the numbers listed below. 

     

    1. The
      actual Unpaid Principal Balance of the Mortgage Loan. 

    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. 

    

    
      	
              3-7.
                

            	
              Complete
                as necessary. All line entries must be supported by copies of appropriate
                statements, 

            

    

    vouchers,
      receipts, canceled checks, etc., to document the expense. Entries not properly
      

    documented
      will not be reimbursed to the Servicer. 

     

    
      	
              8.
                

            	
              Accrued
                Servicing Fees based upon the Scheduled Principal Balance of the
                Mortgage
                Loan as calculated on a monthly basis.

            

    

    
    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              10.
                

            	
              The
                total of lines 1 through 9. 

            

    

     

    Credits
      

     

    
      	
              11-17.
                

            	
              Complete
                as necessary. All line entries must be supported by copies of the
                appropriate claims forms, statements, payment checks, etc. to document
                the
                credit. If the Mortgage Loan is subject to a Bankruptcy Deficiency,
                the
                difference between the Unpaid Principal Balance of the Note prior
                to the
                Bankruptcy Deficiency and the Unpaid Principal Balance as reduced
                by the
                Bankruptcy Deficiency should be input on line 16.
                

            

    

     

    
      	
              18.

            	
              The
                total of lines 11 through 17. 

            

    

     

    Total
      Realized Loss (or Amount of Any Gain) 

     

    
      	
              19.
                

            	
              The
                total derived from subtracting line 18 from 10. If the amount represents
                a
                realized gain, show the amount in parenthesis ( ).
                

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    WELLS
      FARGO BANK, N.A. 

     

    CALCULATION
      OF REALIZED LOSS

     

    

     

    WELLS
      FARGO BANK, N.A. Trust: ___________________________

     

    Prepared
      by: __________________ Date: _______________ 

     

    Phone:
      ______________________ 

     

    Servicer
      Loan No.   Servicer
      Name  Servicer
      Address 

     

    WELLS
      FARGO BANK, N.A. 

    Loan
      No._____________________________ 

    Borrower’s
      Name:________________________________________________________ 

    Property

    Address:________________________________________________________________
      

    

    
      	
              Liquidation
                and Acquisition Expenses: 

            	 
	
              Actual
                Unpaid Principal Balance of Mortgage Loan 

            	
              $
                _______________(1) 

            
	
              Interest
                accrued at Net Rate 

            	
              ________________(2)
                

            
	
              Attorney’s
                Fees 

            	
              ________________(3)
                

            
	
              Taxes
                

            	
              ________________(4)
                

            
	
              Property
                Maintenance 

            	
              ________________(5)
                

            
	
              MI/Hazard
                Insurance Premiums 

            	
              ________________(6)
                

            
	
              Hazard
                Loss Expenses 

            	
              ________________(7)
                

            
	
              Accrued
                Servicing Fees 

            	
              ________________(8)
                

            
	
              Other
                (itemize) 

            	
              ________________(9)
                

            
	 	
              $
                _________________ 

            
	 	 
	 	 
	 	 
	
              Total
                Expenses

            	
              $
                ______________(10) 

            
	
              Credits:
                

            	 
	
              Escrow
                Balance 

            	
              $
                ______________(11) 

            
	
              HIP
                Refund 

            	
              ________________(12)
                

            
	
              Rental
                Receipts 

            	
              ________________(13)
                

            
	
              Hazard
                Loss Proceeds 

            	
              ________________(14)
                

            
	
              Primary
                Mortgage Insurance Proceeds 

            	
              ________________(15)
                

            
	
              Proceeds
                from Sale of Acquired Property 

            	
              ________________(16)
                

            
	
              Other
                (itemize) 

            	
              ________________(17)
                

            
	 	
              ___________________
                

            
	 	
              ___________________
                

            
	
              Total
                Credits

            	
              $________________(18)
                

            

    

    

    Total
      Realized Loss (or Amount
      of Gain)
      $________________

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SCHEDULE
      5

    

    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

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      Standard
        File Layout - Master Servicing 

    

     

    
      	
              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

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Standard
      File Layout - Master Servicing 

     

    
      	
              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
      6

    

    DATA
      REQUIREMENTS OF SERVICING ADVANCES INCURRED PRIOR TO CUT-OFF DATE

    

    

    
      	
              [LOAN
                NUMBER]

            	
              [PRE-CUT-OFF
                DATE ADVANCE AMOUNT]

            

    

    

    

    [PROVIDED
      UPON REQUEST]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}]]