Document:

EX-10.2

 

FORM OF SALE AND SERVICING AGREEMENT

among
[ ] VEHICLE RECEIVABLES TRUST 200[ ]-[ ],

as Issuer,

[GOLDMAN SACHS ASSET BACKED SECURITIES CORP.],

as Company,

and

[          ],

as Servicer

Dated as of                     

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page
	ARTICLE I
	 	 	 	 
	Definitions
	 	 	 	 
	Section 1.01
	 	Definitions	 	 	1	 
	Section 1.02
	 	Other Definitional Provisions	 	 	13	 
	ARTICLE II
	 	 	 	 
	Conveyance of Receivables
	 	 	 	 
	Section 2.01
	 	Conveyance of Receivables	 	 	14	 
	ARTICLE III
	 	 	 	 
	The Receivables
	 	 	 	 
	Section 3.01 
	 	Representations and Warranties of the Company with
Respect to the Receivables	 	 	15	 
	Section 3.02
	 	Repurchase upon Breach	 	 	18	 
	Section 3.03
	 	Custody of Receivable Files	 	 	18	 
	Section 3.04
	 	Duties of Servicer as Custodian	 	 	18	 
	Section 3.05
	 	Instructions;  Authority To Act	 	 	19	 
	Section 3.06
	 	Custodian's Indemnification	 	 	19	 
	Section 3.07
	 	Effective Period and Termination	 	 	19	 
	ARTICLE IV
	 	 	 	 
	Administration and Servicing of Receivables
	 	 	 	 
	Section 4.01
	 	Duties of Servicer	 	 	20	 
	Section 4.02
	 	Collection and Allocation of Receivable Payments	 	 	21	 
	Section 4.03
	 	Realization upon Receivables	 	 	21	 
	Section 4.04
	 	Physical Damage Insurance	 	 	21	 
	Section 4.05
	 	Maintenance of Security Interests in Financed Vehicles	 	 	21	 
	Section 4.06
	 	Covenants of Servicer	 	 	22	 
	Section 4.07
	 	Purchase of Receivables upon Breach	 	 	22	 
	Section 4.08
	 	Servicing Fee	 	 	22	 
	Section 4.09
	 	Servicer's Certificate	 	 	23	 
	Section 4.10
	 	Annual Statement as to Compliance; Notice of Default	 	 	23	 
	Section 4.11
	 	Annual Independent Certified Public
Accountants’ Report	 	 	23	 
	Section 4.12
	 	Access to Certain Documentation and Information
Regarding Receivables	 	 	24	 
	Section 4.13
	 	Servicer Expenses	 	 	24	 
	Section 4.14
	 	Appointment of Subservicer	 	 	24	 
	Section 4.15
	 	Compliance with Regulation AB	 	 	24	 
	ARTICLE V
	 	 	 	 
	Distributions; Reserve Account;
	 	 	 	 
	Statements to Certificateholders and Noteholders
	 	 	 	 
	Section 5.01
	 	Establishment of Trust Accounts	 	 	24	 
	Section 5.02
	 	Collections	 	 	27	 
	Section 5.03
	 	Application of Collections	 	 	27	 
	Section 5.04
	 	Advances	 	 	27	 
	Section 5.05
	 	Additional Deposits	 	 	28	 

 

 

	 	 	 	 	 	 	 
	 	 	 	 	Page
	Section 5.06
	 	Distributions	 	 	28	 
	Section 5.07
	 	Reserve Account	 	 	30	 
	Section 5.08
	 	Statements to Certificateholders and Noteholders	 	 	32	 
	Section 5.09
	 	Net Deposits	 	 	33	 
	ARTICLE VI
	 	 	 	 
	The Company
	 	 	 	 
	Section 6.01
	 	Representations of the Company	 	 	33	 
	Section 6.02
	 	Corporate Existence	 	 	34	 
	Section 6.03
	 	Liability of the Company	 	 	34	 
	Section 6.04
	 	Merger or Consolidation of, or Assumption of the Obligations of the Company	 	 	34	 
	Section 6.05
	 	Limitation on Liability of the Company and Others	 	 	35	 
	Section 6.06
	 	The Company May Own Certificates or Notes	 	 	35	 
	ARTICLE VII
	 	 	 	 
	The Servicer
	 	 	 	 
	Section 7.01
	 	Representations of Servicer	 	 	35	 
	Section 7.02
	 	Indemnities of Servicer	 	 	37	 
	Section 7.03
	 	Merger or Consolidation of, or Assumption of the Obligations of, Servicer	 	 	37	 
	Section 7.04
	 	Limitation on Liability of Servicer and Others	 	 	38	 
	Section 7.05
	 	Servicer Not To Resign	 	 	38	 
	ARTICLE VIII
	 	 	 	 
	Default
	 	 	 	 
	Section 8.01
	 	Servicer Default	 	 	39	 
	Section 8.02
	 	Appointment of Successor	 	 	40	 
	Section 8.03
	 	Repayment of Advances	 	 	40	 
	Section 8.04
	 	Notification to Noteholders and Certificateholders	 	 	40	 
	Section 8.05
	 	Waiver of Past Defaults	 	 	41	 
	ARTICLE IX
	 	 	 	 
	Termination
	 	 	 	 
	Section 9.01
	 	Optional Purchase of All Receivables	 	 	41	 
	ARTICLE X
	 	 	 	 
	Miscellaneous
	 	 	 	 
	Section 10.01
	 	Amendment	 	 	42	 
	Section 10.02
	 	Protection of Title to Trust	 	 	43	 
	Section 10.03
	 	Notices	 	 	45	 
	Section 10.04
	 	Assignment by the Company or the Servicer	 	 	45	 
	Section 10.05
	 	Limitations on Rights of Others	 	 	45	 
	Section 10.06
	 	Severability	 	 	46	 
	Section 10.07
	 	Separate Counterparts	 	 	46	 
	Section 10.08
	 	Headings	 	 	46	 
	Section 10.09
	 	Governing Law	 	 	46	 
	Section 10.10
	 	Assignment by Issuer	 	 	46	 
	Section 10.11
	 	Nonpetition Covenant	 	 	46	 
	Section 10.12
	 	Limitation of Liability of Owner Trustee and	 	 	 	 
	 
	 	Indenture Trustee	 	 	47	 

 

 

     SALE
AND SERVICING AGREEMENT dated as of
                    ,
among [  ]
VEHICLE RECEIVABLES TRUST 200[  ] - [  ], a Delaware business trust (the
“Issuer”), [Goldman Sachs Asset Backed Securities Corp.], a Delaware
corporation (the “Company”), and                     , a                      corporation
(the “Servicer”).

     WHEREAS, the Issuer desires to purchase a portfolio of receivables
arising in connection with motor vehicle installment loan contracts and

motor vehicle retail installment sale contracts held by the Company;

     WHEREAS, the Company is willing to sell such receivables to the
Issuer; and

     WHEREAS, the Servicer is willing to service such receivables;

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

ARTICLE I

Definitions

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

          “Accelerated Principal Distribution Amount” means, with
respect to any Distribution Date, an amount equal to the portion of the
Total Distribution Amount for such Distribution Date that remains after the
payment of (i) the Servicing Fee, (ii) the Noteholders’ Interest
Distributable Amount, (iii) the Regular Principal Distribution Amount, (iv)
the Certificateholders’ Interest Distributable Amount and (v) the amount,
if any, required to be deposited into the Reserve Account on such
Distribution Date pursuant to Section 5.06(b)(ii)(F).

          “Advance” means either a Precomputed Advance or Simple
Interest Advance or both, as applicable.

          “Amount Financed” means with respect to a Receivable, the
amount advanced under the related Motor Vehicle Installment Contract toward
the purchase price of the Financed Vehicle and any related costs.

          “Annual Percentage Rate” or “APR” of a Receivable means
the annual rate of finance charges stated in the related Motor Vehicle

Installment Contract.

     “Available Amount” means, with respect to any
Distribution Date, the amount of funds on deposit in the Reserve Account on
such Distribution Date less the Certificate Interest Reserve Amount with
respect to such Distribution Date before giving effect to any reduction
thereto on such date.

          “Basic Documents” means the Certificate of Trust, the
Trust Agreement, the Sale and Servicing Agreement, the Note Depository
Agreement, the Certificate Depository Agreement and other documents and
certificates delivered in connection therewith.

          “Certificate Balance” equals, initially, $                    
and, thereafter, equals such initial Certificate Balance reduced by all
amounts allocable to principal previously distributed to
Certificateholders.

          “Certificate Distribution Account” has the meaning
assigned to such term in the Trust Agreement.

          “Certificateholders” has the meaning assigned to such
term in the Trust Agreement.

          “Certificateholders’ Distributable Amount” means, with
respect to any Distribution Date, the sum of the Certificateholders’
Principal Distributable Amount and the Certificateholders’ Interest
Distributable Amount for such date.

          “Certificateholders’ Interest Carryover Shortfall” means,
with respect to any Distribution Date, the excess of the sum of the
Certificateholders’ Monthly Interest Distributable Amount for the preceding
Distribution Date and any outstanding Certificateholders’ Interest
Carryover Shortfall on such preceding Distribution Date, over the amount in
respect of interest that is actually deposited in the Certificate
Distribution Account on such preceding Distribution Date, plus 30 days’
interest on such excess, to the extent permitted by law, at the
Pass-Through Rate.

          “Certificateholders’ Interest Distributable Amount”
means, with respect to any Distribution Date, the sum of the
Certificateholders’ Monthly Interest Distributable Amount for such
Distribution Date and the Certificateholders’ Interest Carryover Shortfall
for such Distribution Date. Interest with respect to the Certificates shall
be computed on the basis of a 360-day year consisting of twelve 30-day
months for all purposes of this Agreement and the Basic Documents.

          “Certificateholders’ Monthly Interest Distributable
Amount” means, with respect to any Distribution Date, 30 days of interest
(or, in the case of the first Distribution Date, interest accrued from and
including the Closing Date to but excluding                     ) at the Pass-Through
Rate on the Certificate Balance on the last day of the preceding Collection
Period (or, in the case of the first Distribution Date, on the Closing
Date).

 

 

          “Certificateholders’ Monthly Principal Distributable
Amount” means, with respect to any Distribution Date prior to the
Distribution Date on which the Notes are paid in full, zero; and with
respect to any Distribution Date on or after the Distribution Date on which
the Notes are paid in full, the Regular Principal Distribution Amount for
such Distribution Date (less, on the Distribution Date on which the Notes
are paid in full, the portion thereof payable on the Notes).

          “Certificateholders’ Principal Carryover Shortfall”
means, as of the close of any Distribution Date, the excess of the
Certificateholders’ Monthly Principal Distributable Amount and any
outstanding Certificateholders’ Principal Carryover Shortfall from the
preceding Distribution Date, over the amount in respect of principal that
is actually deposited in the Certificate Distribution Account on such
current Distribution Date.

          “Certificateholders’ Principal Distributable Amount”
means, with respect to any Distribution Date, the sum of the
Certificateholders’ Monthly Principal Distributable Amount for such
Distribution Date and the Certificateholders’ Principal Carryover Shortfall
as of the close of the preceding Distribution Date; provided, however, that
the Certificateholders’ Principal Distributable Amount shall not exceed the
Certificate Balance. In addition, on the Final Scheduled Distribution Date,
the principal required to be included in the Certificateholders’ Principal
Distributable Amount will include the lesser of (a) (i) any Scheduled
Payments of principal due and remaining unpaid on each Precomputed
Receivable and (ii) any principal due and remaining unpaid on each Simple
Interest Receivable, in each case, in the Trust as of the Final Scheduled
Maturity Date or (b) the amount that is necessary (after giving effect to
the other amounts to be deposited in the Certificate Distribution Account
on such Distribution Date and allocable to principal) to reduce the
Certificate Balance to zero.

          “Certificate Interest Reserve Amount” means, at the time
of reference, the lesser of (i) $                     less the amount of any
application of the Certificate Interest Reserve Amount to pay interest on
the Certificates on any prior Distribution Date and (ii)      % of the
Certificate Balance on such Distribution Date (before giving effect to any
reduction thereof on such Distribution Date); provided, however, that the
Certificate Interest Reserve Amount shall be zero subsequent to any
reduction by any Rating Agency of its rating of any Class of Notes to less
than “A-” or its equivalent, or withdrawal by any Rating Agency of its
rating of any Class of Notes, unless such rating has been restored.

          “Certificate Depository Agreement” has the meaning
specified in Section 1.01 of the Trust Agreement.

          “Certificate of Trust” means the certificate of trust of
the Issuer substantially in the form of Exhibit B to the Trust Agreement.

          “Certificate Pool Factor” means, as of the close of
business on the last day of a Collection Period, a seven-digit decimal
figure equal to the Certificate Balance (after giving effect to any
reductions therein to be made on the immediately following Distribution
Date) divided by the initial Certificate Balance. The Certificate Pool
Factor will be 1.0000000 as of the Closing Date; thereafter, the
Certificate Pool Factor will decline to reflect reductions in the
Certificate Balance.

          “Certificates” means the Trust Certificates (as defined
in the Trust Agreement).

          “Class” means any one of the classes of Notes.

          “Class A-1 Final Scheduled Distribution Date” means the
                     Distribution Date.

          “Class A-1 Noteholder” means the Person in whose name a
Class A-1 Note is registered in the Note Register.

          “Class A-2 Final Scheduled Distribution Date” means the
                     Distribution Date.

          “Class A-2 Noteholder” means the Person in whose name a
Class A-2 Note is registered in the Note Register.

          “Clearing Agency” means an organization registered as a
clearing agency pursuant to Section 17A of the Exchange Act.

 

 

          “Collection Account” means the account designated as
such, established and maintained pursuant to Section 5.01(a)(i).

          “Collection Period” means a calendar month. Any amount
stated as of the last day of a Collection Period or as of the first day of
a Collection Period shall give effect to the following calculations as
determined as of the close of business on such last day: (1) all
applications of collections, (2) all current and previous Payaheads, (3)
all applications of Payahead Balances, (4) all Advances and reductions of
Outstanding Precomputed Advances or Outstanding Simple Interest Advances
and (4) all distributions to be made on the following Distribution Date.

          “Company” means [Goldman Sachs Asset Backed Securities Corp.],
a Delaware corporation and any successor in interest.

          “Corporate Trust Office” means the principal office of
the Indenture Trustee at which at any particular time its corporate trust
business shall be administered, which office at the date of execution of
this Agreement is located at                                         ; or at such other address
as the Indenture Trustee may designate from time to time by notice to the
Noteholders and the Company, or the principal corporate trust office of any
successor Indenture Trustee (of which address such successor Indenture
Trustee will notify the Noteholders and the Company).

          “Cutoff Date” means                                                             .

          “Cutoff Date Pool Balance” means the aggregate principal
balance of the Receivables as of the Cutoff Date.

          “Delivery” when used with respect to Trust Account
Property means:

          (a) with respect to bankers’ acceptances, commercial
paper, negotiable certificates of deposit and other obligations that
constitute “instruments” within the meaning of Section 9-105(1)(i) of the
UCC and are susceptible of physical delivery, transfer thereof to the
Indenture Trustee or its nominee or custodian by physical delivery to the
Indenture Trustee or its nominee or custodian endorsed to, or registered in
the name of, the Indenture Trustee or its nominee or custodian or endorsed
in blank, and, with respect to a certificated security (as defined in
Section 8-102 of the UCC) transfer thereof (i) by delivery of such
certificated security endorsed to, or registered in the name of, the
Indenture Trustee or its nominee or custodian or endorsed in blank to a
financial intermediary (as defined in Section 8-313 of the UCC) and the
making by such financial intermediary of entries on its books and records
identifying such certificated securities as belonging to the Indenture
Trustee or its nominee or custodian and the sending by such financial
intermediary of a confirmation of the purchase of such certificated
security by the Indenture Trustee or its nominee or custodian, or (ii) by
delivery thereof to a “clearing corporation” (as defined in Section
8-102(3) of the UCC) and the making by such clearing corporation of
appropriate entries on its books reducing the appropriate securities
account of the transferor and increasing the appropriate securities account
of a financial intermediary by the amount of such certificated security,
the identification by the clearing corporation of the certificated
securities for the sole and exclusive account of the financial
intermediary, the maintenance of such certificated securities by such
clearing corporation or a “custodian bank” (as defined in Section 8-102(4)
of the UCC) or the nominee of either subject to the clearing corporation’s
exclusive control, the sending of a confirmation by the financial
intermediary of the purchase by the Indenture Trustee or its nominee or
custodian of such securities and the making by such financial intermediary
of entries on its books and records identifying such certificated
securities as belonging to the Indenture Trustee or its nominee or
custodian (all of the foregoing, “Physical Property”), and, in any event,
any such Physical Property in registered form shall be in the name of the
Indenture Trustee or its nominee or custodian; and such additional or
alternative procedures as may hereafter become appropriate to effect the
complete transfer of ownership of any such Trust Account Property (as

 

 

defined herein) to the Indenture Trustee or its nominee or custodian,
consistent with changes in applicable law or regulations or the
interpretation thereof;

          (b) with respect to any securities issued by the U.S.
Treasury, the Federal Home Loan Mortgage Corporation or by the Federal
National Mortgage Association that is a book-entry security held through
the Federal Reserve System pursuant to Federal book-entry regulations, the
following procedures, all in accordance with applicable law, including
applicable Federal regulations and Articles 8 and 9 of the UCC: book-entry
registration of such Trust Account Property to an appropriate book-entry
account maintained with a Federal Reserve Bank by a financial intermediary
which is also a “depository” pursuant to applicable Federal regulations and
issuance by such financial intermediary of a deposit advice or other
written confirmation of such book-entry registration to the Indenture
Trustee or its nominee or custodian of the purchase by the Indenture
Trustee or its nominee or custodian of such book-entry securities; the
making by such financial intermediary of entries in its books and records
identifying such book-entry security held through the Federal Reserve
System pursuant to Federal book-entry regulations as belonging to the
Indenture Trustee or its nominee or custodian and indicating that such
custodian holds such Trust Account Property solely as agent for the
Indenture Trustee or its nominee or custodian; and such additional or
alternative procedures as may hereafter become appropriate to effect
complete transfer of ownership of any such Trust Account Property to the
Indenture Trustee or its nominee or custodian, consistent with changes in
applicable law or regulations or the interpretation thereof; and

          (c) with respect to any item of Trust Account Property
that is an uncertificated security under Article 8 of the UCC and that is
not governed by clause (b) above, registration on the books and records of
the issuer thereof in the name of the financial intermediary, the sending
of a confirmation by the financial intermediary of the purchase by the
Indenture Trustee or its nominee or custodian of such uncertificated
security, the making by such financial intermediary of entries on its books
and records identifying such uncertificated certificates as belonging to
the Indenture Trustee or its nominee or custodian.

          “Distribution Date” means, with respect to each
Collection Period, the                      day of the following month or, if such
day is not a Business Day, the immediately following Business Day,
commencing on                     .

          “Eligible Deposit Account” means either (a) a segregated
account with an Eligible Institution or (b) a segregated trust account with
the corporate trust department of a depository institution organized under
the laws of the United States of America or any one of the states thereof
or the District of Columbia (or any domestic branch of a foreign bank),
having corporate trust powers and acting as trustee for funds deposited in
such account, so long as any of the securities of such depository
institution shall have a credit rating from each Rating Agency in one of
its generic rating categories that signifies investment grade.

          “Eligible Institution” means (a) the corporate trust
department of the Indenture Trustee, the Owner Trustee or                     
so long as it shall be Paying Agent under the Trust Agreement or (b) a
depository institution organized under the laws of the United States of
America or any one of the states thereof or the District of Columbia (or
any domestic branch of a foreign bank), which (i) has either (A) a
long-term unsecured debt rating of AAA or better by Standard & Poor’s and
A1 or better by Moody’s or (B) a certificate of deposit rating of A-1+ by
Standard & Poor’s and P-1, or better by Moody’s, or any other long-term or
short-term or certificate of deposit rating acceptable to the Rating
Agencies and (ii) whose deposits are insured by the FDIC. If so qualified,
the Indenture Trustee, the Owner Trustee or                      may be
considered an Eligible Institution for the purposes of clause (b) of this
definition.

 

 

          “Eligible Investments” means book-entry securities,
negotiable instruments or securities represented by instruments in bearer

or registered form which evidence:

          (a) direct obligations of, and obligations fully
guaranteed as to the full and timely payment by, the United States of

America;

          (b) demand deposits, time deposits or certificates of
deposit of any depository institution or trust company incorporated under
the laws of the United States of America or any state thereof (or any
domestic branch of a foreign bank) and subject to supervision and
examination by Federal or State banking or depository institution
authorities; provided, however, that at the time of the investment or
contractual commitment to invest therein, the commercial paper or other
short-term unsecured debt obligations (other than such obligations the
rating of which is based on the credit of a Person other than such
depository institution or trust company) thereof shall have a credit rating
from each of the Rating Agencies in the highest investment category granted
thereby;

          (c) commercial paper having, at the time of the
investment or contractual commitment to invest therein, a rating from each

of the Rating Agencies in the highest investment category granted thereby;

          (d) investments in money market funds having a rating
from each of the Rating Agencies in the highest investment category granted

thereby;

          (e) bankers’ acceptances issued by any depository
institution or trust company referred to in clause (b) above;

          (f) repurchase obligations with respect to any security
that is a direct obligation of, or fully guaranteed by, the United States
of America or any agency or instrumentality thereof the obligations of
which are backed by the full faith and credit of the United States of
America, in either case entered into with a depository institution or trust
company (acting as principal) described in clause (b); or

          (g) any other investment with respect to which the Issuer
or the Servicer has received written notification from the Rating Agencies
that the acquisition of such investment as an Eligible Investment will not
result in a withdrawal or downgrading of the ratings on the Notes or
Certificates.

          “FDIC” means the Federal Deposit Insurance Corporation.

          “Final Scheduled Distribution Date” means the
                     Distribution Date.

          “Final Scheduled Maturity Date” means                     .

          “Financed Vehicle” means an automobile, van or light-duty
truck, together with all accessions thereto, securing an Obligor’s
indebtedness under the related Receivable.

          “Indenture” means the Indenture dated as of
                    , between the Issuer and the Indenture Trustee.

          “Indenture Trustee” means the Person acting as Indenture
Trustee under the Indenture, its successors in interest and any successor
trustee under the Indenture.

          “Insolvency Event” means, with respect to a specified
Person, (a) the filing of a decree or order for relief by a court having
jurisdiction in the premises in respect of such Person or any substantial
part of its property in an involuntary case under any applicable federal or
state bankruptcy, insolvency or other similar law now or hereafter in
effect, or appointing a receiver, liquidator, assignee, custodian, trustee,
sequestrator or similar official for such Person or for any substantial
part of its property, or ordering the winding-up or liquidation of such
Person’s affairs, and such decree or order shall remain unstayed and in
effect for a period of 60 consecutive days; or (b) the commencement by such
Person of a voluntary case under any applicable federal or state
bankruptcy, insolvency or other similar law now or hereafter in effect, or
the consent by such Person to the entry of an order for relief in an
involuntary case under any such law, or the consent by such Person to the
appointment of or taking possession by a receiver, liquidator, assignee,

 

 

custodian, trustee, sequestrator or similar official for such Person or for
any substantial part of its property, or the making by such Person of any
general assignment for the benefit of creditors, or the failure by such
Person generally to pay its debts as such debts become due, or the taking
of action by such Person in furtherance of any of the foregoing.

          “Interest Distribution Amount” means, with respect to any
Distribution Date, the sum of the following amounts, without duplication,
with respect to the Receivables for the Collection Period immediately
preceding such Distribution Date: (a) that portion of all collections on
Receivables (including Payaheads) allocable to interest plus that portion
of Payaheads allocable to principal, (b) Liquidation Proceeds with respect
to the Receivables to the extent allocable to interest due thereon in
accordance with the Servicer’s customary servicing procedures, (c) all
Advances made by the Servicer of interest due on Receivables, (d) the
Purchase Amount of each Receivable that became a Purchased Receivable
during such Collection Period to the extent attributable to accrued
interest on such Receivable, and (e) Recoveries for such Collection Period;
provided, however, that in calculating the Interest Distribution Amount the
following will be excluded: (i) amounts received on Precomputed Receivables
to the extent of any unreimbursed Precomputed Advances of interest; (ii)
Liquidation Proceeds with respect to a particular Precomputed Receivable to
the extent of any unreimbursed Precomputed Advances of interest; (iii) all
payments and proceeds (including Liquidation Proceeds) of any Purchased
Receivables the Purchase Amount of which has been included in the Interest
Distribution Amount in a prior Collection Period; (iv) the sum for all
Simple Interest Receivables of collections on each such Simple Interest
Receivable received during such preceding Collection Period in excess of
the amount of interest that would be due on the aggregate Principal Balance
of the Simple Interest Receivables during such Collection Period at their
respective APRs if a payment were received on each Simple Interest
Receivable during such Collection Period on the date payment is due under
the terms of such Simple Interest Receivable; and (v) Liquidation Proceeds
with respect to a Simple Interest Receivable attributable to accrued and
unpaid interest thereon (but not including interest for the then current
Collection Period) but only to the extent of any unreimbursed Simple
Interest Advances.

          “Investment Earnings” means, with respect to any
Distribution Date, the investment earnings (net of losses and investment
expenses) on amounts on deposit in the Trust Accounts to be deposited into
the Collection Account on such Distribution Date pursuant to Section
5.01(b).

          “Issuer” means [ ] Vehicle Receivables Trust 200[ ]-[ ].

          “Lien” means a security interest, lien, charge, pledge,
equity or encumbrance of any kind, other than tax liens, mechanics’ liens
and any liens that attach to a Receivable by operation of law.

          “Liquidated Receivable” means any Receivable liquidated
by the Servicer through the sale of a Financed Vehicle or otherwise.

          “Liquidation Proceeds” means, with respect to any
Liquidated Receivable, the moneys collected in respect thereof, from
whatever source on a Liquidated Receivable during the Collection Period in
which such Receivable became a Liquidated Receivable, net of the sum of any
amounts expended by the Servicer in connection with such liquidation and
any amounts required by law to be remitted to the Obligor on such
Liquidated Receivable.

          “Motor Vehicle Installment Contract” means a motor
vehicle loan installment contract originated by a Seller or a motor vehicle
retail installment sale contract acquired by a Seller from a motor vehicle
retail dealer or another financial institution.

          “Note Depository Agreement” means the agreement dated
                    , among the Issuer, the Indenture Trustee and the
Depository Trust Company, as the initial Clearing Agency, relating to the
Notes.

 

 

          “Note Distribution Account” means the account designated
as such, established and maintained pursuant to Section 5.01(a)(iii).

          “Note Pool Factor” means, with respect to each Class of
Notes as of the close of business on the last day of a Collection Period, a
seven-digit decimal figure equal to the outstanding principal balance of
such Class of Notes (after giving effect to any reductions thereof to be
made on the immediately following Distribution Date) divided by the
original outstanding principal balance of such Class of Notes. The Note
Pool Factor for each Class of Notes will be 1.0000000 as of the Closing
Date; thereafter, the Note Pool Factor will decline to reflect reductions
in the outstanding principal balance of such Class of Notes.

          “Noteholders’ Distributable Amount” means, with respect
to any Distribution Date, the sum of the Noteholders’ Principal
Distributable Amount and the Noteholders’ Interest Distributable Amount for
such Distribution Date.

          “Noteholders’ Interest Carryover Shortfall” means, with
respect to any Distribution Date, the excess of the sum of the Noteholders’
Monthly Interest Distributable Amount for the preceding Distribution Date
and any outstanding Noteholders’ Interest Carryover Shortfall on such
preceding Distribution Date, over the amount in respect of interest that is
actually deposited in the Note Distribution Account on such preceding
Distribution Date, plus interest on the amount of interest due but not paid
to Noteholders on the preceding Distribution Date, to the extent permitted
by law, at the Interest Rate borne by each Class of the Notes for the
related Interest Period.

          “Noteholders’ Interest Distributable Amount” means, with
respect to any Distribution Date, the sum of the Noteholders’ Monthly
Interest Distributable Amount for such Distribution Date and the
Noteholders’ Interest Carryover Shortfall for such Distribution Date. For
all purposes of this Agreement and the Basic Documents, interest with
respect to all Classes of Notes shall be computed on the basis of a 360-day
year consisting of twelve 30-day months.

          “Noteholders’ Monthly Interest Distributable Amount”
means, with respect to any Distribution Date, interest accrued for the
related Interest Accrual Period on each Class of Notes at the Interest Rate
for such Class on the outstanding principal balance of the Notes of such
Class on the immediately preceding Distribution Date (or, in the case of
the first Distribution Date, the Closing Date), after giving effect to all
distributions of principal to Holders of the Notes of such Class on or
prior to such Distribution Date (or, in the case of the first Distribution
Date, on the Closing Date).

          “Noteholders Monthly Principal Distributable Amount”
means, with respect to any Distribution Date, the sum of (i) the Regular
Principal Distribution Amount plus (ii) the Accelerated Principal Amount
plus (iii) any accelerated payments of principal required to be made from
amounts on deposit in the Reserve Account pursuant to Section 5.07(b)(ii).

          “Noteholders’ Principal Carryover Shortfall” means, as of
the close of any Distribution Date, the excess of the Noteholders’ Monthly
Principal Distributable Amount and any outstanding Noteholders’ Principal
Carryover Shortfall from the preceding Distribution Date, over the amount
in respect of principal that is actually deposited in the Note Distribution
Account on such current Distribution Date.

          “Noteholders’ Principal Distributable Amount” means, with
respect to any Distribution Date, the sum of the Noteholders’ Monthly
Principal Distributable Amount for such Distribution Date and the
Noteholders’ Principal Carryover Shortfall as of the close of the preceding
Distribution Date; provided, however, that the Noteholders’ Principal
Distributable Amount shall not exceed the outstanding principal balance of
the Notes. In addition, (a) on the Class A-1 Final Scheduled Distribution
Date, the principal required to be deposited in the Note Distribution
Account will include the amount necessary (after giving effect to the other
amounts to be deposited in the Note Distribution Account on such
Distribution Date and allocable to principal) to reduce the Outstanding
Amount of the Class A-1 Notes to zero; and (b) on the Class A-2 Final

 

 

Scheduled Distribution Date, the principal required to be deposited in the
Note Distribution Account will include the amount necessary (after giving
effect to the other amounts to be deposited in the Note Distribution
Account on such Distribution Date and allocable to principal) to reduce the
Outstanding Amount of the Class A-2 Notes to zero.

          “Obligor” on a Receivable means the purchaser or
co-purchasers of the Financed Vehicle and any other Person who owes

payments under the related Motor Vehicle Installment Contract.

          “Officers’ Certificate” means a certificate signed by (a)
the chairman of the board, the president, any vice president and (b) the
treasurer, assistant treasurer, secretary or assistant secretary of the
Company or the Servicer, as appropriate.

          “Opinion of Counsel” means one or more written opinions
of counsel, who may be an employee of or counsel to the Company or the
Servicer, which counsel shall be acceptable to the Indenture Trustee, the
Owner Trustee or the Rating Agencies, as applicable.

          “Outstanding Precomputed Advances” on the Precomputed
Receivables means the sum, as of the close of business on the last day of a
Collection Period, of all Precomputed Advances as reduced as provided in
Section 5.04(a).

          “Outstanding Simple Interest Advances” on the Simple
Interest Receivables means the sum, as of the close of business on the last
day of a Collection Period, of all Simple Interest Advances as reduced as
provided in Section 5.04(b).

          “Owner Trust Estate” has the meaning assigned to such
term in the Trust Agreement.

          “Owner Trustee” means the Person acting as Owner Trustee
under the Trust Agreement, its successors in interest and any successor
owner trustee under the Trust Agreement.

          “Pass-Through Rate” means                     % per annum.

          “Payahead” means, with respect to any Receivable that is
a Precomputed Receivable, the amount, as of the close of business on the

last day of a Collection Period, computed in accordance with Section 5.03.

          “Payahead Balance” means, with respect to any Receivable
that is a Precomputed Receivable, the sum, as of the close of business on
the last day of a Collection Period, of all Payaheads made by or on behalf
of the Obligor on such Precomputed Receivable, as reduced by applications
of previous Payaheads with respect to such Precomputed Receivable pursuant
to Section 5.05 and 5.04.

          “Payment Distribution Date” means, with respect to any
Distribution Date, the Business Day immediately preceding such Distribution

Date.

          “Physical Property” has the meaning assigned to such term
in the definition of “Delivery” above.

          “Pool Balance” means, as of the close of business on the
last day of a Collection Period, the aggregate Principal Balance of the
Receivables as of such day (excluding Purchased Receivables and Liquidated
Receivables).

          “Precomputed Advance” means the amount, as of the close
of business on the last day of a Collection Period, that the Servicer is
required to advance on the related Precomputed Receivables pursuant to
Section 5.04(a).

          “Precomputed Receivable” means any Receivable (i) under
which the portion of a payment allocable to earned interest (which may be
referred to in the related Motor Vehicle Installment Contract as an add-on
finance charge) and the portion allocable to the Amount Financed is
determined according to the sum of periodic balances or the sum of monthly
balances or any equivalent method or (ii) that is a monthly actuarial
receivable.

          “Principal Balance” means (a) with respect to a
Precomputed Receivable, the Amount Financed minus the sum, as of the close
of business on the last day of a Collection Period, of (i) that portion of
all Scheduled Payments due on or prior to such day allocable to principal

 

 

using the actuarial or constant yield method, (ii) any refunded portion of
extended warranty protection plan costs or of physical damage, credit life
or disability insurance premiums included in the Amount Financed, (iii) the
portion of any related Purchase Amount allocable to principal and (iv) any
prepayment in full or any partial prepayments applied to reduce the related
Principal Balance and (b) with respect to a Simple Interest Receivable, the
Amount Financed minus the sum, as of the close of business on the last day
of a Collection Period, of (i) the portion of all payments made by or on
behalf of the related Obligor on or prior to such day and allocable to
principal using the Simple Interest Method and (ii) the portion of any
related Purchase Amount allocable to principal.

          “Purchase Amount” means the amount, as of the close of
business on the last day of a Collection Period, required to prepay a
Receivable in full under the terms thereof, including interest to the end
of the month of purchase.

          “Purchased Receivable” means a Receivable purchased as of
the close of business on the last day of a Collection Period by the
Servicer pursuant to Section 4.07 or by the Company pursuant to Section
3.02.

          “Rating Agency” means                      or, if no such
organization or successor is any longer in existence, a nationally
recognized statistical rating organization or other comparable Person
designated by the Company, notice of which designation shall be given to
the Indenture Trustee, the Owner Trustee and the Servicer.

          “Rating Agency Condition” means, with respect to any
action, that each Rating Agency shall have been given 10 days’ (or such
shorter period as shall be acceptable to each Rating Agency) prior notice
thereof and that, within 7 days of receipt of such notice, none of the
Rating Agencies shall have notified the Company, the Servicer, the Owner
Trustee or the Indenture Trustee in writing that such action will result in
a reduction or withdrawal of the then current rating of the Notes or the
Certificates.

          “Realized Losses” means, with respect to any Receivable
that becomes a Liquidated Receivable, the excess of the Principal Balance
of such Liquidated Receivable over Liquidation Proceeds to the extent
allocable to principal.

          “Receivable” means any Motor Vehicle Installment Contract
listed on Schedule I (which Schedule may be in the form of microfiche).

          “Receivable Files” means the documents specified in
Section 3.03.

          “Receivables Purchase Agreement” means an agreement,
substantially in the form of Exhibit H hereto, between the Company and a
Seller, pursuant to which such Seller sold Motor Vehicle Installment
Contracts to be included in the Trust to the Company.

          “Recoveries” means, with respect to any Receivable that
becomes a Liquidated Receivable, monies collected in respect thereof, from
whatever source, during any Collection Period following the Collection
Period in which such Receivable became a Liquidated Receivable, net of the
sum of any amounts expended by the Servicer for the account of the Obligor
and any amounts required by law to be remitted to the Obligor.

          “Regular Principal Distribution Amount” means, with
respect to each Receivable and any Distribution Date, the sum of the
following amounts, without duplication, in respect of the Collection Period
immediately preceding such Distribution Date: (a) that portion of all
collections on Receivables allocable to principal (exclusive of Payaheads
allocable to principal that have not been applied as payments under the
related Receivables in such Collection Period and inclusive of Payaheads
allocable to principal that have been applied as payments under the related
Receivables in such Collection Period), (b) all Liquidation Proceeds
attributable to the principal amount of Receivables that became Liquidated
Receivables during such Collection Period in accordance with the Servicer’s
customary servicing procedures, plus the amount of Realized Losses with
respect to such Liquidated Receivables, (c) all Precomputed Advances made

 

 

by the Servicer of principal due on the Precomputed Receivables, (d) to the
extent attributable to principal, the Purchase Amount of each Receivable
that became a Purchased Receivable during such Collection Period, (e)
partial prepayments on Precomputed Receivables relating to refunds of
extended warranty protection plan costs or of physical damage, credit life
or disability insurance policy premiums, but only if such costs or premiums
were financed by the respective Obligors thereon as of the date of the
original contract and only to the extent not included under clause (a)
above, and (f) on the Final Scheduled Distribution Date, any amounts
advanced by the Servicer on such Final Scheduled Distribution Date with
respect to principal on the Receivables: provided, however, that in
calculating the Regular Principal Distribution Amount the following will be
excluded: (i) amounts received on Precomputed Receivables to the extent
that the Servicer has previously made an unreimbursed Precomputed Advance
of principal, (ii) Liquidation Proceeds with respect to a particular
Precomputed Receivable to the extent of any unreimbursed Precomputed
Advances of principal, (iii) all payments and proceeds (including
Liquidation Proceeds) of any Purchased Receivables the Purchase Amount of
which has been included in the Principal Distribution Amount in a prior
Collection Period, and (iv) Recoveries.

          “Reserve Account” means the account designated as such,
established and maintained pursuant to Section 5.01(a)(iv).

          “Reserve Account Initial Deposit” means an amount equal
to the Specified Reserve Account Balance on the Closing Date (which is

equal to $                    ).

          “Scheduled Payment” on a Precomputed Receivable means
that portion of the payment required to be made by the Obligor during each
Collection Period sufficient to amortize the Principal Balance under the
actuarial method over the term of the Receivable and to provide interest at
the APR.

          “Seller” means, with respect to any Receivable, the
Person from whom such Receivable was acquired by the Company pursuant to

the related Receivables Purchase Agreement.

          “Servicer” means                     , as the Servicer of the
Receivables, and each successor to                      pursuant to Section 7.03

or 8.02.

          “Servicer Default” means an event specified in Section
8.01.

          “Servicer’s Certificate” means an Officers’ Certificate
of the Servicer delivered pursuant to Section 4.09.

          “Servicing Fee” means the fee payable to the Servicer for
services rendered during each Collection Period, determined pursuant to

Section 4.08.

          “Servicing Fee Rate” means ___% per annum.

          “Simple Interest Advance” means the amount of interest,
as of the close of business on the last day of a Collection Period, that
the Servicer is required to advance on the Simple Interest Receivables
pursuant to Section 5.04(b).

          “Simple Interest Method” means the method of allocating a
fixed level payment to principal and interest, pursuant to which the
portion of such payment that is allocated to interest is equal to the
product of the fixed rate of interest multiplied by the unpaid principal
balance multiplied by the period of time elapsed since the preceding
payment of interest was made and the remainder of such payment is allocable
to principal.

          “Simple Interest Receivable” means any Receivable under
which the portion of a payment allocable to interest and the portion
allocable to principal is determined in accordance with the Simple Interest
Method.

          “Specified Reserve Account Balance” means [state formula].

          “Total Distribution Amount” means, for each Distribution
Date, the sum of the Interest Distribution Amount and the Regular Principal

Distribution Amount (other than the portion thereof attributable to
Realized Losses).

 

 

          “Trust” means the Issuer.

          “Trust Account Property” means the Trust Accounts, all
amounts and investments held from time to time in any Trust Account
(whether in the form of deposit accounts, Physical Property, book-entry
securities, uncertificated securities or otherwise), including the Reserve
Account Initial Deposit, and all proceeds of the foregoing.

          “Trust Accounts” has the meaning assigned thereto in
Section 5.01.

          “Trust Agreement” means the Amended and Restated Trust
Agreement dated as of                     , between the Company and the
Owner Trustee.

          “Trust Officer” means, in the case of the Indenture
Trustee, any Officer within the Corporate Trust Office of the Indenture
Trustee, including any Vice President, Assistant Vice President, Secretary,
Assistant Secretary or any other officer of the Indenture Trustee
customarily performing functions similar to those performed by any of the
above designated officers and also, with respect to a particular matter,
any other officer to whom such matter is referred because of such officer’s
knowledge of and familiarity with the particular subject and, with respect
to the Owner Trustee, any officer in the Corporate Trust Administration
Department of the Owner Trustee with direct responsibility for the
administration of the Trust Agreement and the Basic Documents on behalf of
the Owner Trustee.

          Section 1.02 Other Definitional Provisions.

               (a) Capitalized terms used and not otherwise
defined herein have the meanings assigned to them in the Indenture.

               (b) All terms defined in this Agreement shall
have the defined meanings when used in any certificate or other document

made or delivered pursuant hereto unless otherwise defined therein.

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

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

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

               (f) Any agreement, instrument or statute defined
or referred to herein or in any instrument or certificate delivered in
connection herewith means such agreement, instrument or statute as from
time to time amended, modified or supplemented and includes (in the case of
agreements or instruments) references to all attachments thereto and
instruments incorporated therein; references to a Person are also to its
permitted successors and assigns.

 

 

ARTICLE II

Conveyance of Receivables

          Section 2.01 Conveyance of Receivables. In consideration
of the Owner Trustee’s delivery on the Closing Date to or upon the order of
the Company of $                    , the Company does hereby sell, transfer,
assign, set over and otherwise convey to the Issuer, without recourse
(subject to the obligations as set forth herein), all right, title and
interest of the Company in and to:

               (a) the Receivables and all moneys due thereon
on and after the Cutoff Date, in the case of Precomputed Receivables, and
all moneys received thereon on and after the Cutoff Date, in the case of
Simple Interest Receivables;

               (b) the security interest in the Financed
Vehicles granted by Obligors pursuant to the Receivables and any other

interest of the Company in such Financed Vehicles;

               (c) any proceeds with respect to the Receivables
from claims on any physical damage, theft, credit life or disability

insurance policies covering Financed Vehicles or Obligors;

               (d) any Financed Vehicle that shall have secured
any such Receivable and shall have been acquired by or on behalf of the

Company, the Servicer or the Issuer; and

               (e) the proceeds of any and all of the
foregoing.

ARTICLE III

The Receivables

          Section 3.01 Representations and Warranties of the
Company with Respect to the Receivables. The Company makes the following
representations and warranties as to the Receivables conveyed by it to the
Issuer, on which the Issuer is deemed to have relied in acquiring the
Receivables. Such representations and warranties speak as of the execution
and delivery of this Agreement and as of the Closing Date, but shall
survive the sale, transfer and assignment of the Receivables to the Issuer
and the pledge thereof to the Indenture Trustee pursuant to the Indenture.

               (a) Characteristics of Receivables. Each
Receivable (1) was originated by the Seller thereof or purchased from a
motor vehicle dealer or another financial institution by such Seller in the
ordinary course of such Seller’s business, (2) has created a valid,
subsisting and enforceable first priority security interest in favor of the
Seller in the Financed Vehicle, which security interest is assignable by
the Seller to the Company, by the Company to the Issuer and by the Issuer
to the Indenture Trustee, (3) contains customary and enforceable provisions
such that the rights and remedies of the holder thereof are adequate for
realization against the collateral of the benefits of the security, (4)
provides for level monthly payments (provided, that the payment in the
first or last month in the life of the Receivable may be minimally
different from the level payments) that fully amortize the Amount Financed
by maturity and yield interest at the Annual Percentage Rate, and (5) in
the case of a Precomputed Receivable, in the event that such contract is
prepaid, provides for a prepayment that fully pays the Principal Balance
and includes accrued but unpaid interest through the date of prepayment at
the Annual Percentage Rate.

               (b) Schedule of Receivables. The information set
forth in Schedule I to this Agreement is true and correct in all material
respects as of the opening of business on the Cutoff Date, and no selection
procedures believed to be adverse to the Noteholders or the
Certificateholders were utilized in selecting the Receivables. The computer
tape or other listing regarding the Receivables made available to the
Issuer and its assigns is true and correct in all material respects as of
the Cutoff Date.

               (c) Compliance with Law. Each Receivable and the
sale of the related Financed Vehicle complied at the time it was originated
or made and at the execution of this Agreement in all material respects
with all requirements of applicable federal, state and local laws and
regulations thereunder, including usury laws, the Federal Truth-in- Lending
Act, the Equal Credit Opportunity Act, the Fair Credit Reporting Act, the
Fair Debt Collection Practices Act, the Federal Trade Commission Act, the

 

 

Magnuson-Moss Warranty Act, the Federal Reserve Board’s Regulations B and
Z, and State adaptations of the National Consumer Act and of the Uniform
Consumer Credit Code, and other consumer credit laws and equal credit
opportunity and disclosure laws.

               (d) Binding Obligation. Each Receivable
represents the genuine, legal, valid and binding payment obligation in
writing of the Obligor, enforceable by the holder thereof in accordance
with its terms, subject to applicable bankruptcy, insolvency,
reorganization and similar laws now or hereafter in effect relating to or
affecting creditor’s rights generally and to general principles of equity
(whether applied in a proceeding at law or in equity).

               (e) No Government Obligor. None of the
Receivables is due from the United States of America or any State thereof
or from any agency, department or instrumentality of the United States of
America or any State.

               (f) Security Interest in Financed Vehicle.
Immediately prior to the sale, assignment and transfer thereof to the
Issuer, each Receivable shall be secured by a validly perfected first
security interest in the Financed Vehicle in favor of the related Seller as
secured party of all necessary and appropriate actions have been commenced
that would result in the valid perfection of a first security interest in
the Financed Vehicle in favor of the related Seller as secured party.

               (g) Receivables in Force. No Receivable has been
satisfied, subordinated or rescinded, nor has any Financed Vehicle been
released from the lien granted by the related Receivable in whole or in
part.

               (h) No Waiver. No provision of a Receivable has
been waived in such a manner that the Receivable fails to meet any other

representation or warranty of the Company with respect thereto.

               (i) No Amendments. No Receivable has been
amended such that the amount of the Obligor’s Scheduled Payments has been
increased except for increases resulting from the inclusion of any premiums
for forced placed physical damage insurance covering the Financed Vehicle.

               (j) No Defenses. No facts are known to the
Company that would give rise to any right of defense, nor shall the same

have been asserted or threatened, with respect to any Receivable.

               (k) No Liens. To the best of the Company’ s
knowledge, no liens or claims have been filed for work, labor or materials
relating to a Financed Vehicle that are liens prior to, or equal to or
coordinate with, the security interest in the Financed Vehicle granted by
any Receivable.

               (l) No Default. No Receivable has a payment that
is more than 90 days overdue as of the Cutoff Date, and, except as
permitted in this paragraph, no default, breach, violation or event
permitting acceleration under the terms of any Receivable has occurred; no
continuing condition that with notice or the lapse of time would constitute
a default, breach, violation or event permitting acceleration under the
terms of any Receivable has arisen; and the Company has not waived and
shall not waive any of the foregoing.

               (m) Insurance. The related Seller, in accordance
with its customary procedures, has determined that the Obligor has obtained
physical damage insurance covering the Financed Vehicle and under terms of
the Receivable the Obligor is required to maintain such insurance.

               (n) Title. It is the intention of the Company
that the transfer and assignment herein contemplated constitute a sale of
the Receivables from the Company to the Issuer and that the beneficial
interest in and title to the Receivables not be part of the debtor’s estate
in the event of the filing of a bankruptcy petition by or against the
Company. No Receivable has been sold, transferred, assigned or pledged by
the Company to any Person other than the Issuer. Immediately prior to the
transfer and assignment herein contemplated, the Company had good and
marketable title to each Receivable conveyed by it hereunder to the Issuer,
free and clear of all Liens and rights of others and, immediately upon the

 

 

transfer thereof, the Issuer shall have good and marketable title to each
Receivable, free and clear of all Liens and rights of others; and the
transfer has been perfected under the UCC.

               (o) Lawful Assignment. No Receivable has been
originated in, or is subject to the laws of, any jurisdiction under which
the sale, transfer and assignment of such Receivable or any Receivable
under this Agreement or the Indenture is unlawful, void or voidable.

               (p) All Filings Made. All filings (including UCC
filings) necessary in any jurisdiction to give the Issuer a first perfected
ownership interest in the Receivables, and to give the Indenture Trustee a
first perfected security interest therein, shall have been made.

               (q) One Original. There is only one original
executed copy of each Receivable.

               (r) Maturity of Receivables. The weighted
average remaining term of the Receivables as of the Cutoff Date is

                     months.

               (s) Scheduled Payments. (1) No Receivable has
payment that is more than 90 days overdue as of the Cutoff Date; and (2) no
Receivable has a final scheduled payment date that is later than the Final
Scheduled Maturity Date.

               (t) Location of Receivable Files. The Receivable
Files are kept at one or more of the locations listed in Schedule II.

               (u) No Bankruptcies. No Obligor on any
Receivable as of the Cutoff Date was noted in the related Receivable File

as having filed for bankruptcy.

               (v) No Repossessions. No Financed Vehicle
securing any Receivable is in repossession status.

               (w) Chattel Paper. Each Receivable constitutes
“chattel paper” as defined in the UCC.

               (x) Agreement. The representations and
warranties of the Company in Section 6.01 are true and correct.

               (y) Financing. Approximately ___% of the
aggregate principal balance of the Receivables, constituting ___% of the
number of the Receivables as of the Cutoff Date represents financing of new
vehicles and the remainder of the Receivables represents financing of used
vehicles; and approximately ___% of the aggregate principal balance of the
Receivables as of the Cutoff Date represents Precomputed Receivables and
the remainder of the Receivables represents Simple Interest Receivables.
The Principal Balance of the Receivables as of the Cutoff Date is
$                    .

               (z) APR. The weighted average Annual Percentage
Rate of the Receivables as of the Cutoff Date is approximately ___%.

          Section 3.02 Repurchase upon Breach. The Company, the
Servicer or the Owner Trustee, as the case may be, shall inform the other
parties to this Agreement and the Indenture Trustee promptly, in writing,
upon the discovery of any breach of the Company’s representations and
warranties made pursuant to Section 3.01 or 6.01. Unless any such breach
shall have been cured in all material respects by the last day of the
second Collection Period following the discovery thereof (and notice to the
Company) by the Owner Trustee or receipt by the Owner Trustee of written
notice from the Company or the Servicer of such breach, the Company shall
be obligated to repurchase any Receivable materially and adversely affected
by any such breach as of such last day (or, at the Company’s option, the
last day of the first Collection Period following the discovery). In
consideration of the repurchase of any such Receivable, the Company shall
remit the Purchase Amount, in the manner specified in Section 5.05. The
sole remedy of the Issuer, the Owner Trustee, the Indenture Trustee, the
Noteholders or the Certificateholders with respect to a breach or
representations and warranties pursuant to Section 3.01 and the agreement
contained in this Section shall be to require the Company to repurchase
Receivables pursuant to this Section, subject to the conditions contained
herein.

 

 

          Section 3.03 Custody of Receivable Files. To assure
uniform quality in servicing the Receivables and to reduce administrative
costs, the Issuer hereby revocably appoints the Servicer, and the Servicer
hereby accepts such appointment, to act for the benefit of the Issuer and
the Indenture Trustee as custodian of the following documents or
instruments which are hereby or will hereby be constructively delivered to
the Indenture Trustee, as pledgee of the Issuer as of the Closing Date:

               (a) the fully executed original of each
Receivable;

               (b) a filmed copy of each original credit
application as executed by the Obligor;

               (c) the original certificate of title or such
documents that the Servicer shall keep on file, in accordance with its
customary procedures, evidencing the security interest of the related
Seller in each Financed Vehicle; and

               (d) any and all other documents that the
Servicer shall keep on file, in accordance with its customary procedures,
relating to a Receivable, an Obligor or a Financed Vehicle.

          Section 3.04 Duties of Servicer as Custodian.

               (a) Safekeeping. The Servicer shall hold the
Receivable Files as custodian for the benefit of the Issuer and maintain
such accurate and complete accounts, records and computer systems
pertaining to each Receivable File as shall enable the Issuer to comply
with this Agreement. In performing its duties as custodian, the Servicer
shall act with reasonable care using that degree of skill and attention
that the Servicer exercises with respect to the Receivable Files relating
to all comparable automotive receivables that the Servicer services for
itself or others. The Servicer shall conduct, or cause to be conducted,
periodic audits of the Receivable Files held by it under this Agreement and
of the related accounts, records and computer systems, in such a manner as
shall enable the Issuer or the Indenture Trustee to verify the accuracy of
the Servicer’s record keeping. The Servicer shall promptly report to the
Issuer and the Indenture Trustee any failure on its part to hold the
Receivable Files and maintain its accounts, records and computer systems as
herein provided and shall promptly take appropriate action to remedy any
such failure. Nothing herein shall be deemed to require an initial review
or any periodic review by the Issuer or the Indenture Trustee of the
Receivables Files.

               (b) Maintenance of and Access to Records. The
Servicer shall maintain each Receivable File at one of its offices
specified in Schedule II or at such other office as shall be specified to
the Issuer and the Indenture Trustee by written notice not later than 90
days after any change in location. The Servicer shall make available to the
Issuer and the Indenture Trustee or their respective duly authorized
representatives, attorneys or auditors a list of locations of the
Receivable Files and the related accounts, records and computer systems
maintained by the Servicer at such times during normal business hours as
the Issuer or the Indenture Trustee shall instruct.

               (c) Release of Documents. Upon instruction from
the Indenture Trustee, the Servicer shall release any Receivable File to
the Indenture Trustee, the Indenture Trustee’s agent or the Indenture
Trustee’s designee, as the case may be, at such place or places as the
Indenture Trustee may designate, as soon as practicable, and upon the
release and delivery of any such document in accordance with the
instructions of the Indenture Trustee, the Servicer shall be released from
any further liability and responsibility under this Section 3.04 with
respect to such documents unless and until such time as such documents
shall be returned to the Servicer, and in no event shall the Servicer be
responsible for any loss occasioned by the Indenture Trustee’s failure to
return any documents in a timely manner.

               Section 3.05 Instructions; Authority To Act. The Servicer
shall be deemed to have received proper instructions with respect to the
Receivable Files upon its receipt of written instructions signed by a Trust
Officer of the Indenture Trustee.

 

 

          Section 3.06 Custodian’s Indemnification. The Servicer as
custodian shall indemnify the Trust, the Owner Trustee and the Indenture
Trustee and each of their respective officers, directors, employees and
agents for any and all liabilities, obligations, losses, compensatory
damages, payments, costs or expenses of any kind whatsoever that may be
imposed on, incurred by or asserted against the Trust, the Owner Trustee or
the Indenture Trustee or any of their respective officers, directors,
employees and agents as the result of any improper act or omission in any
way relating to the maintenance and custody by the Servicer as custodian of
the Receivable Files; provided, however, that the Servicer shall not be
liable to the Owner Trustee for any portion of any such amount resulting
from the willful misfeasance, bad faith or negligence of the Owner Trustee,
and the Servicer shall not be liable to the Indenture Trustee for any
portion of any such amount resulting from the willful misfeasance, bad
faith or negligence of the Indenture Trustee.

          Section 3.07 Effective Period and Termination. The
Servicer’s appointment as custodian shall become effective as of the
Closing Date and shall continue in full force and effect until terminated
pursuant to this Section. If the Servicer shall resign as Servicer in
accordance with the provisions of this Agreement or if all of the rights
and obligations of any Servicer shall have been terminated under Section
8.01, the appointment of such Servicer as custodian shall be terminated by
the Indenture Trustee or by the Holders of Notes evidencing not less than
25% of the Outstanding Amount of the Notes or, with the consent of Holders
of the Notes evidencing not less than 25% the Outstanding Amount of the
Notes or, with the consent of Holders of the Notes evidencing not less than
25% of the Outstanding Amount of the Notes, by the Owner Trustee or by
Certificateholders evidencing not less than 25% of the Certificate Balance,
in the same manner as the Indenture Trustee or such Holders may terminate
the rights and obligations of the Servicer under Section 8.01. The
Indenture Trustee or, with the consent of the Indenture Trustee, the Owner
Trustee may terminate the Servicer’s appointment as custodian, with cause,
at any time upon written notification to the Servicer, and without cause
upon 30 days’ prior written notification to the Servicer. As soon as
practicable after any termination of such appointment, the Servicer shall
deliver the Receivable Files to the Indenture Trustee or the Indenture
Trustee’s agent at such place or places as the Indenture Trustee may
reasonably designate. Notwithstanding any termination of the Servicer as
custodian, the Indenture Trustee or Owner Trustee, as applicable, shall
provide, or shall cause its agent to provide, access to the Receivable
Files to the Servicer for the purpose of carrying out its duties and
responsibilities with respect to the servicing of the Receivables
hereunder.

ARTICLE IV

Administration and Servicing of Receivables

          Section 4.01 Duties of Servicer. The Servicer, for the
benefit of the Issuer (to the extent provided herein), shall manage,
service, administer and make collections on the Receivables (other than
Purchased Receivables) with reasonable care, using that degree of skill and
attention that the Servicer exercises with respect to all comparable
automotive receivables that it services for itself or others. The
Servicer’s duties shall include collection and posting of all payments,
responding to inquiries of Obligors on such Receivables, investigating
delinquencies, sending payment coupons to Obligors, reporting tax
information to Obligors, accounting for collections, furnishing monthly and
annual statements to the Owner Trustee and the Indenture Trustee with
respect to distributions and making Advances pursuant to Section 5.04.
Subject to the provisions of Section 4.02, the Servicer shall follow its
customary standards, policies and procedures in performing its duties as
Servicer. Without limiting the generality of the foregoing, the Servicer is
authorized and empowered to execute and deliver, on behalf of itself, the
Issuer, the Owner Trustee, the Indenture Trustee, the Certificateholders
and the Noteholders or any of them, any and all instruments of satisfaction

 

 

or cancellation, or partial or full release or discharge, and all other
comparable instruments, with respect to the Receivables or to the Financed
Vehicles securing such Receivables. If the Servicer shall commence a legal
proceeding to enforce a Receivable, the Issuer (in the case of a Receivable
other than a Purchased Receivable) shall thereupon be deemed to have
automatically assigned, solely for the purpose of collection, such
Receivable to the Servicer. If in any enforcement suit or legal proceeding
it shall be held that the Servicer may not enforce a Receivable on the
ground that it shall not be a real party in interest or a holder entitled
to enforce such Receivable, the Owner Trustee shall, at the Servicer’s
expense and direction, take steps to enforce such Receivable, including
bringing suit in its name or the name of the Owner Trustee, the Indenture
Trustee, the Certificateholders or the Noteholders. The Owner Trustee shall
upon the written request of the Servicer furnish the Servicer with any
powers of attorney and other documents reasonably necessary or appropriate
to enable the Servicer to carry out its servicing and administrative duties
hereunder.

          Section 4.02 Collection and Allocation of Receivable
Payments. The Servicer shall make reasonable efforts to collect all
payments called for under the terms and provisions of the Receivables as
and when the same shall become due and shall follow such collection
procedures as it follows with respect to all comparable automotive
receivables that it services for itself or others. The Servicer shall
allocate collections between principal and interest in accordance with the
customary servicing procedures it follows with respect to all comparable
automotive receivables that it services for itself or others. The Servicer
may grant extensions, rebates or adjustments on Receivable, which shall
not, for the purposes of this Agreement, modify the original due dates or
amounts of the Scheduled Payments on a Precomputed Receivable or the
original due dates or amounts of the originally scheduled payments of
interest on Simple Interest Receivables; provided, however, that if the
Servicer extends the date for final payment by the Obligor of any
Receivable beyond the Final Scheduled Maturity Date, it shall promptly
repurchase the Receivable from the Issuer in accordance with the terms of
Section 4.07. The Servicer may in its discretion waive any late payment
charge or any other fees that may be collected in the ordinary course of
servicing a Receivable. The Servicer shall not agree to any alteration of
the interest rate on any Receivable or of the amount of any Scheduled
Payment on Precomputed Receivables or the originally Scheduled Payments on
Simple Interest Receivables.

          Section 4.03 Realization upon Receivables. On behalf of
the Issuer, the Servicer shall use its best efforts, consistent with its
customary servicing procedures, to repossess or otherwise convert the
ownership of the Financed Vehicle securing any Receivable as to which the
Servicer shall have determined eventual payment in full is unlikely. The
Servicer shall follow such customary and usual practices and procedures as
it shall deem necessary or advisable in its servicing of automotive
receivables, which may include reasonable efforts to realize upon any
recourse to Dealers and selling the Financed Vehicle at public or private
sale. The Servicer shall be entitled to recover all out-of-pocket expenses
incurred by it in the course of converting a Financed Vehicle into cash
proceeds. The foregoing shall be subject to the provision that, in any case
in which the Financed Vehicle shall have suffered damage, the Servicer
shall not expend funds in connection with the repair or the repossession of
such Financed Vehicle unless it shall determine in its discretion that such
repair and/or repossession will increase the Liquidation Proceeds by an
amount greater than the amount of such expenses.

          Section 4.04 Physical Damage Insurance. The Servicer
shall, in accordance with its customary servicing procedures, require that
each Obligor shall have obtained physical damage insurance covering the
Financed Vehicle as of the execution of the Receivable.

          Section 4.05 Maintenance of Security Interests in
Financed Vehicles. The Servicer shall, in accordance with its customary

 

 

servicing procedures, take such steps as are necessary to maintain
perfection of the security interest created by each Receivable in the
related Financed Vehicle. The Servicer is hereby authorized to take such
steps as are necessary to re-perfect such security interest on behalf of
the Issuer and the Indenture Trustee in the event of the relocation of a
Financed Vehicle or for any other reason. In the event that the assignment
of a Receivable to the Trust is insufficient, without a notation on the
related Financed Vehicle’s certificate of title, to grant to the Trust a
first perfected security interest in the relaxed Financed Vehicle, the
Servicer hereby agrees to serve as the agent of the Trust for the purposes
of perfecting the security interest in such Financed Vehicle and that the
Servicer’s listing as the secured party on the certificate of title is in
its capacity as agent of the Trust.

          Section 4.06 Covenants of Servicer. The Servicer shall
not release the Financed Vehicle securing any Receivable from the security
interest granted by such Receivable in whole or in part except in the event
of payment in full by the Obligor thereunder or repossession, nor shall the
Servicer impair the rights of the Issuer, the Indenture Trustee, the
Certificateholders or the Noteholders in such Receivable, nor shall the
Servicer increase the number of scheduled payments due under a Receivable.

          Section 4.07 Purchase of Receivables upon Breach. The
Servicer or the Owner Trustee shall inform the other party and the
Indenture Trustee and the Company promptly, in writing, upon the discovery
of any breach pursuant to Section 4.02, 4.05 or 4.06 that materially and
adversely affects the interests of the Trust in any Receivable. Unless the
breach shall have been cured by the last day of the second Collection
Period following such discovery (or, at the Servicer’s election, the last
day of the first following Collection Period), the Servicer shall purchase,
as of such last day, any Receivable that is materially and adversely
affected by such breach. In consideration of the purchase of any such
Receivable pursuant to either of the two preceding sentences, the Servicer
shall remit the Purchase Amount in the manner specified in Section 5.05.
For purposes of this Section, the Purchase Amount shall consist in part of
a release by the Servicer of all rights of reimbursement with respect to
Outstanding Precomputed Advances and Outstanding Simple Interest Advances
on the Receivable. The sole remedy of the Issuer, the Owner Trustee, the
Indenture Trustee, the Certificateholders or the Noteholders with respect
to a breach pursuant to Section 4.02, 4.05 or 4.06 shall be to require the
Servicer to purchase Receivables pursuant to this Section. The Owner
Trustee shall have no duty to conduct any affirmative investigation as to
the occurrence of any condition requiring the repurchase of any Receivable
pursuant to this Section.

          Section 4.08 Servicing Fee. As compensation for servicing
the Receivables, the Servicer shall be entitled to receive the Servicing
Fee on each Distribution Date, from the Interest Distribution Amount
available on such Distribution Date, in an amount equal to the product of
(a) one-twelfth, (b) the Servicing Fee Rate and (c) the Pool Balance as of
the first day of the preceding Collection Period. The Servicer shall also
be entitled to all late fees, prepayment charges (including, in the case of
a Receivable that provides for payments according to the “Rule of 78s” and
that is prepaid in full, the difference between the Principal Balance of
such Receivable (plus accrued interest to the date of prepayment) and the
principal balance of such Receivable computed according to the “Rule of
78s”), and other administrative fees or similar charges allowed by
applicable law with respect to the Receivables, collected (from whatever
source) on the Receivables, as and when collected, plus any reimbursement
pursuant to the last paragraph of Section 7.02.

          Section 4.09 Servicer’s Certificate. Not later than 11:00
a.m. (New York time) on each Payment Determination Date, the Servicer shall
deliver to the Owner Trustee, each Paying Agent, the Indenture Trustee and
the Company, with a copy to the Rating Agencies, a Servicer’s Certificate
containing all information necessary to make the distributions to be made
on the related Distribution Date pursuant to Section 5.06 and 5.07 for the

 

 

related Collection Period. Receivables to be purchased by the Servicer or
to be repurchased by the Company shall be identified by the Servicer by
account number with respect to such Receivable (as specified in Schedule
I).

          Section 4.10 Annual Statement as to Compliance; Notice of
Default. (a) The Servicer shall deliver to the Owner Trustee and the
Indenture Trustee, on or before March 15th of each year
beginning                     , 200     , an Officers’ Certificate, dated as of
                     of the preceding year, stating that (i) a review of the
activities of the Servicer during the preceding 12-month period (or such
shorter period as shall have elapsed since the Closing Date) and of its
performance under this Agreement has been made under such officers’
supervision and (ii) to the best of such officers’ knowledge, based on such
review, the Servicer has fulfilled all its obligations under this Agreement
throughout such year or, if there has been a default in the fulfillment of
any such obligation, specifying each such default known to such officers
and the nature and status thereof. The Indenture Trustee shall send a copy
of such certificate and the report referred to in Section 4.11 to the
Rating Agencies. A copy of such certificate and the report referred to in
Section 4.11 may be obtained by any Certificateholder, Certificate Owner,
Noteholder or Note Owner by a request in writing to the Owner Trustee
addressed to the Corporate Trust Office. Upon the telephone request of the
Owner Trustee, the Indenture Trustee will promptly furnish the Owner
Trustee a list of Noteholders as of the date specified by the Owner
Trustee.

          (b) The Servicer shall deliver to the Owner Trustee, the
Indenture Trustee and the Rating Agencies, promptly after having obtained
knowledge thereof, but in no event later than five (5) Business Days
thereafter, written notice in an Officers’ Certificate of any event which
with the giving of notice or lapse of time, or both, would become a
Servicer Default under Section 8.01(a) or (b). Section 4.11 Annual
Independent Certified Public Accountants’ Report. The Servicer shall
deliver to the Owner Trustee and the Indenture Trustee on or before
March 15th of each year beginning                     , a report of a firm of
independent certified public accountants, addressed to the Board of
Directors of the Servicer, to the effect that such firm has examined the
financial statements of the Servicer and issued its report thereon and that
such examination (a) was made in accordance with generally accepted
auditing standards and accordingly included such tests of the accounting
records and such other auditing procedures as such firm considered
necessary in the circumstances; (b) included tests relating to automotive
loans serviced for others in accordance with the requirements of the
Uniform Single Audit Program for Mortgage Bankers (the “Program”), to the
extent the procedures in such Program are applicable to the servicing
obligations set forth in this Agreement; and (c) except as described in the
report, disclosed no exceptions or errors in the records relating to
automobile and light-duty truck loans serviced for others that, in the
firm’s opinion, paragraph four of such Program requires such firm to
report. Such report will also indicate that the firm is independent of the
Servicer within the meaning of the Code of Professional Ethics of the
American Institute of Certified Public Accountants.

          Section 4.12 Access to Certain Documentation and
Information Regarding Receivables. The Servicer shall provide to the
Certificateholders and Noteholders access to the Receivable Files in such
cases where the Certificateholders or Noteholders shall be required by
applicable statutes or regulations to review such documentation. Access
shall be afforded without charge, but only upon reasonable request and
during the normal business hours at the respective offices of the Servicer.
Nothing in this Section shall affect the obligation of the Servicer to
observe any applicable law prohibiting disclosure of information regarding
the Obligors and the failure of the Servicer to provide access to
information as a result of such obligation shall not constitute a breach of
this Section.

 

 

          Section 4.13 Servicer Expenses. The Servicer shall be
required to pay all expenses incurred by it in connection with its
activities hereunder, including fees and disbursements of independent
accountants, taxes imposed on the Servicer and expenses incurred in
connection with distributions and reports to Certificateholders and
Noteholders.

          Section 4.14 Appointment of Subservicer. The Servicer may
at any time appoint a subservicer to perform all or any portion of its
obligations as Servicer hereunder; provided, however, that the Rating
Agency Condition shall have been satisfied in connection therewith; and
provided, further, that the Servicer shall remain obligated and be liable
to the Issuer, the Owner Trustee, the Indenture Trustee, the
Certificateholders and the Noteholders for the servicing and administering
of the Receivables in accordance with the provisions hereof without
diminution of such obligation and liability by virtue of the appointment of
such subservicer and to the same extent and under the same terms and
conditions as if the Servicer alone were servicing and administering the
Receivables. The fees and expenses of the subservicer shall be as agreed
between the Servicer and its subservicer from time to time, and none of the
Issuer, the Owner Trustee, the Indenture Trustee, the Certificateholders or
the Noteholders shall have any responsibility therefor.

          Section 4.15 Compliance with Regulation AB. The Servicer agrees to perform all duties and
obligations applicable to or required of the Issuer set forth in Appendix A attached hereto and
made a part hereof in all respects and makes the representations and warranties therein applicable
to it.

ARTICLE V

Distributions; Reserve Account; Statements to Certificateholders

and Noteholders

          Section 5.01 Establishment of Trust Accounts. (a) (i) The
Servicer, for the benefit of the Noteholders and the Certificateholders,
shall establish and maintain in the name of the Indenture Trustee an
Eligible Deposit Account (the “Collection Account”), bearing a designation
clearly indicating that the funds deposited therein are held for the
benefit of the Noteholders and the Certificateholders.

          (ii) The Servicer, for the benefit of the
Noteholders, shall establish and maintain in the name of the
Indenture Trustee an Eligible Deposit Account (the “Note
Distribution Account”), bearing a designation clearly indicating
that the funds deposited therein are held for the benefit of the
Noteholders.

          (iii) The Servicer, for the benefit of the
Noteholders and the Certificateholders, shall establish and
maintain in the name of the Indenture Trustee an Eligible Deposit
Account (the “Reserve Account”), bearing a designation clearly
indicating that the funds deposited therein are held for the
benefit of the Noteholders and the Certificateholders.

          (b) Funds on deposit in the Collection Account, the Note
Distribution Account and the Reserve Account (collectively the “Trust
Accounts”) shall be invested (1) by the Indenture Trustee in Eligible
Investments selected in writing by the Servicer or an investment manager
selected by the Servicer, which investment manager shall have agreed to
comply with the terms of this Agreement as it relates to investing such
funds or (2) by an investment manager in Eligible Investments selected by
such investment manager, provided that (A) such investment manager shall be
selected by the Servicer, (B) such investment manager shall have agreed to
comply with the terms of this Agreement as it relates to investing such
funds, (C) any investment so selected by such investment manager shall be
made in the name of the Indenture Trustee and shall be settled by a
Delivery to the Indenture Trustee that complies with the terms of this
Agreement as it relates to investing such funds, and (D) prior to the
settlement of any investment so selected by such investment manager the
Indenture Trustee shall affirm that such investment is an Eligible
Investment. It is understood and agreed that the Indenture Trustee shall

 

 

not be liable for any loss arising from an investment in Eligible
Investments made in accordance with this Section 5.01(b). All such Eligible
Investments shall be held by the Indenture Trustee for the benefit of the
Noteholders and the Certificateholders or the Noteholders, as applicable;
provided, that on each Payment Determination Date all interest and other
investment income (net of losses and investment expenses) on funds on
deposit in the Trust Accounts shall be deposited into the Collection
Account and shall be deemed to constitute a portion of the Interest
Distribution Amount for the related Distribution Date. Unless otherwise
permitted by the Rating Agencies, funds on deposit in the Collection
Account, the Reserve Account and the Note Distribution Account shall be
invested in Eligible Investments that will mature (A) not later than the
Business Day immediately preceding the next Distribution Date or (B) on
such next Distribution Date if either (x) such investment is held in the
trust department of the institution with which the Collection Account, the
Reserve Account, the Note Distribution Account or the Certificate
Distribution Account, as applicable, is then maintained and is invested in
a time deposit of                      rated at least A-1 by Standard &
Poor’s and P-1 by Moody’s (such account being maintained within the trust
department of                     ) or (y) the Indenture Trustee (so long as
the short-term unsecured debt obligations of the Indenture Trustee are
either (i) rated at least P-1 by Moody’s and A-1 by Standard & Poor’s on
the date such investment is made or (ii) guaranteed by an entity whose
short-term unsecured debt obligations are rated at least P-1 by Moody’s and
A-1 by Standard & Poor’s on the date such investment is made) has agreed to
advance funds on such Distribution Date to the Note Distribution Account
and the Certificate Distribution Account in the amount payable on such
investment on such Distribution Date pending receipt thereof to the extent
necessary to make distributions on such Distribution Date. The guarantee
referred to in clause (y) of the preceding sentence shall be subject to the
Rating Agency Condition. For the purpose of the foregoing, unless the
Indenture Trustee affirmatively agrees in writing to make such advance with
respect to such investment prior to the time an investment is made, it
shall not be deemed to have agreed to make such advance. Funds deposited in
a Trust Account on a day which immediately precedes a Distribution Date
upon the maturity of any Eligible Investments are not required to be
invested overnight.

          (c) (i) The Indenture Trustee shall possess all right,
title and interest in all funds on deposit from time to time in the Trust
Accounts and in all proceeds thereof (including all income thereon) and all
such funds, investments, proceeds and income shall be part of the Trust
Estate. The Trust Accounts shall be under the sole dominion and control of
the Indenture Trustee for the benefit of the Noteholders and the
Certificateholders, as the case may be. If, at any time, any of the Trust
Accounts ceases to be an Eligible Deposit Account, the Indenture Trustee
(or the Servicer on its behalf) shall within 10 Business Days (or such
longer period, not to exceed 30 calendar days, as to which each Rating
Agency may consent) establish a new Trust Account as an Eligible Deposit
Account and shall transfer any cash and/or any investments to such new
Trust Account.

          (ii) With respect to the Trust Account Property,
the Indenture Trustee agrees, by its acceptance hereof, that:

          (A) any Trust Account Property that is
held in deposit accounts shall be held solely in the
Eligible Deposit Accounts, subject to the last sentence
of Section 5.01(c)(i); and each such Eligible Deposit
Account shall be subject to the exclusive custody and
control of the Indenture Trustee, and the Indenture
Trustee shall have sole signature authority with respect
thereto;

          (B) any Trust Account Property that
constitutes Physical Property shall be delivered to the
Indenture Trustee in accordance with paragraph (a) of the

 

 

definition of “Delivery” and shall be held, pending
maturity or disposition, solely by the Indenture Trustee
or a financial intermediary (as such term is defined in
Section 8-313(4)) of the UCC acting solely for the
Indenture Trustee;

          (C) any Trust Account Property that is a
book-entry security held through the Federal Reserve
System pursuant to Federal book-entry regulations shall
be delivered in accordance with paragraph (b) of the
definition of “Delivery” and shall be maintained by the
Indenture Trustee, pending maturity or disposition,
through continued book-entry registration of such Trust
Account Property as described in such paragraph; and

          (D) any Trust Account Property that is an
“uncertificated security” under Article VIII of the UCC
and that is not governed by clause (C) above shall be
delivered to the Indenture Trustee in accordance with
paragraph (c) of the definition of “Delivery” and shall
be maintained by the Indenture Trustee, pending maturity
or disposition, through continued registration of the
Indenture Trustee’s (or its nominee’s) ownership of such
security.

                              (iii) The Servicer shall have the power,
revocable by the Indenture Trustee or by the Owner Trustee with
the consent of the Indenture Trustee, to instruct the Indenture
Trustee to make withdrawals and payments from the Trust Accounts
for the purpose of permitting the Servicer or the Owner Trustee to
carry out its respective duties hereunder or permitting the
Indenture Trustee to carry out its duties under the Indenture.

             Section 5.02 Collections. The Servicer shall remit within
two Business Days of receipt thereof to the Collection Account all payments
by or on behalf of the Obligors with respect to the Receivables (other than
Purchased Receivables) and all Liquidation Proceeds, both as collected
during the Collection Period. Notwithstanding the foregoing, for so long as
(i)                      remains the Servicer, (ii) no Servicer Default shall have
occurred and be continuing and (iii)(x)                      maintains a short-term
rating of at least A-1 by Standard & Poor’s and P-1 by Moody’s (and for
five Business Days following a reduction in either such rating) or (y)
prior to ceasing daily remittances, the Rating Agency Condition shall have
been satisfied (and any conditions or limitations imposed by the Rating
Agencies in connection therewith are complied with), the Servicer may remit
such collections with respect to the preceding calendar month to the
Collection Account on a less frequent basis, but in no event later than the
Payment Determination Date immediately preceding each Distribution Date.
For purposes of this Article V the phrase “payments by or on behalf of
Obligors” shall mean payments made with respect to the Receivables by
Persons other than the Servicer.

             Section 5.03 Application of Collections. All collections
for the Collection Period shall be applied by the Servicer as follows:

      With respect to each Receivable (other than a Purchased
Receivable), payments by or on behalf of the Obligor shall be
applied first, in the case of Precomputed Receivables, to reduce
Outstanding Precomputed Advances as described in Section 5.04(a)
and, in the case of Simple Interest Receivables, to reduce
Outstanding Simple Interest Advances to the extent described in
Section 5.04(b). Next, any excess shall be applied, in the case of
Precomputed Receivables, to the Scheduled Payment and, in the case
of Simple Interest Receivables, to interest and principal in
accordance with the Simple Interest Method. With respect to
Precomputed Receivables, any remaining excess shall be added to
the Payahead Balance, and shall be applied to prepay the
Precomputed Receivable, but only if the sum of such excess and the
previous Payahead Balance shall be sufficient to prepay the

 

 

Receivable in full. Otherwise, any such remaining excess payments
shall constitute a Payahead and shall increase the Payahead
Balance.

If the Servicer is required to return a Payahead to the related Obligor,
the amount to be returned shall be retained by the Servicer from
collections on the Receivables allocable to principal and paid by the
Servicer to such Obligor.

          Section 5.04 Advances. (a) As of the close of business on
the last day of each Collection Period, if the payments by or on behalf of
the Obligor on a Precomputed Receivable (other than a Purchased Receivable)
shall be less than the Scheduled Payment, the Payahead Balance shall be
applied by the Servicer to the extent of the shortfall and such Payahead
Balance shall be reduced accordingly. Next, the Servicer shall advance any
remaining shortfall (such amount, a “Precomputed Advance”), to the extent
that the Servicer, at its sole discretion, shall determine that the
Precomputed Advance shall be recoverable from the Obligor, the Purchase
Amount, Liquidation Proceeds or proceeds of any other Precomputed
Receivables. With respect to each Precomputed Receivable, the Precomputed
Advance shall increase Outstanding Precomputed Advances. Outstanding
Precomputed Advances shall be reduced by subsequent payments by or on
behalf of the Obligor, collections of Liquidation Proceeds in respect of
such Precomputed Receivables or payments of the Purchase Amount with
respect to such Precomputed Receivables.

          If the Servicer shall determine that an Outstanding
Precomputed Advance with respect to any Precomputed Receivable shall not be
recoverable as aforesaid, the Servicer shall be reimbursed from any
collections made on other Precomputed Receivables in the Trust and
Outstanding Precomputed Advances with respect to such Precomputed
Receivables shall be reduced accordingly.

               (b) As of the close of business on the last day
of each Collection Period, the Servicer shall advance an amount equal to
the amount of interest due on the Simple Interest Receivables at their
respective APR’s for the related Collection Period (assuming the Simple
Interest Receivables pay on their respective due dates) minus the amount of
interest actually received on the Simple Interest Receivables during the
related Collection Period (such amount, a “Simple Interest Advance”). With
respect to each Simple Interest Receivable, the Simple Interest Advance
shall increase Outstanding Simple Interest Advances. If such calculation
results in a negative number, an amount equal to such negative number shall
be paid to the Servicer and the amount of Outstanding Simple Interest
Advances shall be reduced by such amount. In addition, in the event that a
Simple Interest Receivable becomes a Liquidated Receivable, Liquidation
Proceeds with respect to such Simple Interest Receivable attributable to
accrued and unpaid interest thereon (but not including interest for the
then current Collection Period) shall be paid to the Servicer to reduce
Outstanding Simple Interest Advances, but only to the extent of any
Outstanding Simple Interest Advances.

          Section 5.05 Additional Deposits. The Servicer shall
deposit in the Collection Account on the Payment Determination Date for the
related Collection Period the aggregate Advances pursuant to Section 5.04.
To the extent that the Servicer fails to make a Simple Interest Advance
pursuant to Section 5.04(b) on the date required, the Servicer shall notify
the Indenture Trustee to withdraw such amount (or, if determinable, such
portion of such amount as does not represent advances for delinquent
interest) from the Reserve Account and deposit such amount in the
Collection Account. The Servicer and the Company shall deposit or cause to
be deposited in the Collection Account the aggregate Purchase Amount with
respect to Purchased Receivables and the Servicer shall deposit therein all
amounts to be paid under Section 9.01. The Servicer will deposit the
aggregate Purchase Amount with respect to Purchased Receivables when such
obligations are due, unless the Servicer shall not be required to make
daily deposits pursuant to Section 5.02. All such other deposits shall be
made on the Payment Determination Date for the related Collection Period.

 

 

              Section 5.06 Distributions. (a) So long as (i) the
long-term unsecured indebtedness of the Servicer is rated Baa3 or better by
Moody’s or (ii) the Rating Agency Condition is otherwise satisfied, the
Servicer will be entitled to receive the payment of the Servicing Fee in
respect of a Collection Period (and all unpaid Servicing Fees from prior
Collection Periods) at the beginning of each Collection Period from
payments on the Receivables received during such Collection Period.

               (i) On each Payment Determination Date, the
Servicer shall calculate all amounts required to be deposited in
the Note Distribution Account and the Certificate Distribution
Account.

               (ii) On each Distribution Date, the Servicer
shall instruct the Indenture Trustee (based on the information
contained in the Servicer’s Certificate delivered on the related
Payment Determination Date pursuant to Section 4.09) to make the
following deposits and distributions for receipt by the Servicer
or deposit in the applicable account by 11:00 a.m. (New York
time), to the extent of the Total Distribution Amount, in the
following order of priority:

                    (A) to the extent the Servicer has not
received the payment of the Servicing Fee at the
beginning of the related Collection Period pursuant to
clause (a) above, to the Servicer, from the Interest
Distribution Amount, the Servicing Fee (and all unpaid
Servicing Fees from prior Collection Periods);

                    (B) to the Note Distribution Account,
from the Total Distribution Amount remaining after the
application of Section 5.06(a) and clause (A), the
Noteholders’ Interest Distributable Amount;

                    (C) to the Note Distribution Account,
from the Total Distribution Amount remaining after the
application of Section 5.06(a) and clauses (A) and (B),
the Noteholders’ Principal Distributable Amount;

                    (D) to the Certificate Distribution
Account, from the Total Distribution Amount remaining
after the application of Section 5.06(a) and clauses (A)
through (C), the Certificateholders’ Interest
Distributable Amount;

                    (E) to the Certificate Distribution
Account, from the Total Distribution Amount remaining
after the application of Section 5.06(a) and clauses (A)
through (D), the Certificateholders’ Principal
Distributable Amount;

                    (F) to the Reserve Account, from the
Total Distribution Amount remaining after the application
of Section 5.06(a) and clauses (A) through (E) (it being
understood that the Acceleration Principal Distribution
Amount is a function of and subject to the amount
required to be deposited in the Reserve Account pursuant
to this clause (F)), the amount, if any, necessary to
reinstate the balance in the Reserve Account up to the
Specified Reserve Account Balance; and

                    (G) to the Reserve Account, the portion,
if any, of the Total Distribution Amount remaining after
the application of Section 5.06(a) and clauses (A)
through (F).

              Notwithstanding that the Notes have been paid in full,
the Indenture Trustee shall continue to maintain the Collection Account
hereunder until the Certificate Balance is reduced to zero.

              Section 5.07 Reserve Account. (a) On the Closing Date,
the Owner Trustee will deposit, on behalf of the Company, the Reserve
Account Initial Deposit into the Reserve Account from the net proceeds of
the sale of the Notes and the Certificates.

 

 

               (b) (i) After giving effect to clause (ii) below, if the amount on deposit in the Reserve Account on any Distribution
Date (after giving effect to all deposits thereto or withdrawals therefrom
on such Distribution Date) is greater than the Specified Reserve Account
Balance for such Distribution Date, the Servicer shall instruct the
Indenture Trustee to distribute the amount of such excess to the Company.

          (ii) On each Distribution Date subsequent to any
reduction or withdrawal by any Rating Agency of its rating of any
Class of Notes, unless such rating has been restored, if the
amount on deposit in the Reserve Account (taking into account any
deposits therein pursuant to Section 5.06(b) and withdrawals
therefrom on such date pursuant to Section 5.07(c), (d) or (e)) is
greater than the Specified Reserve Account Balance for such
Distribution Date, then the Servicer shall instruct the Indenture
Trustee to include the amount of such excess in the Noteholders’
Monthly Principal Distribution Amount and to deposit the amount of
such excess (up to the amount of cash or cash equivalents in the
Reserve Account) to the Collection Account for deposit to the Note
Distribution Account for distribution to Noteholders as an
accelerated payment of principal on such Distribution Date;
provided, that the amount of such deposit shall not exceed the
outstanding principal balance of the Notes after giving effect to
all other payments of principal to be made on such date.

               (c) If the Servicer determines pursuant to
Section 5.04 that it is required to make an Advance on a Payment
Determination Date and does not do so from its own funds, the Servicer
shall instruct the Indenture Trustee to withdraw funds from the Reserve
Account and deposit them in the Collection Account to cover any shortfall.
Such payment shall be deemed to have been made by the Servicer pursuant to
Section 5.04 for purposes of making distributions pursuant to this
Agreement, but shall not otherwise satisfy the Servicer’s obligation to
deliver the amount of the Advances, and the Servicer shall within two
Business Days replace any funds in the Reserve Account so used.

               (d) (i) In the event that the Noteholders’
Distributable Amount for a Distribution Date exceeds the sum of the amounts
deposited into the Note Distribution Account pursuant to Section
5.06(b)(ii)(B) and (C) on such Distribution Date, the Servicer shall
instruct the Indenture Trustee to withdraw from the Reserve Account on such
Distribution Date an amount equal to such excess, to the extent of funds
available therein up to the Available Amount, and deposit such amount into
the Note Distribution Account.

          In the event that the Noteholders’ Principal
Distributable Amount on the Class A-1 Final Scheduled Distribution Date or
the Class A-2 Final Scheduled Distribution Date exceeds the amount
deposited into the Note Distribution Account pursuant to Section
5.06(b)(ii)(C) on such Distribution Date, the Servicer shall instruct the
Indenture Trustee to withdraw from the Reserve Account on such Distribution
Date an amount equal to such excess, to the extent of funds available
therein up to the Available Amount, and deposit such amount into the Note
Distribution Account.

               (e) (i) In the event that the
Certificateholders’ Distributable Amount for a Distribution Date exceeds
the sum of the amounts deposited into the Certificate Distribution Account
pursuant to Section 5.06(b)(ii)(D) and (E) on such Distribution Date, the
Servicer shall instruct the Indenture Trustee to withdraw from the Reserve
Account on such Distribution Date an amount equal to such excess, to the
extent of funds available therein up to the Available Amount after giving
effect to paragraphs (c) and (d) above, and deposit such amount into the
Certificate Distribution Account on such Distribution Date.

          (ii) In the event that the Certificateholders’
Monthly Interest Distributable Amount for a Distribution Date
exceeds the amount deposited in the Certificate Distribution
Account pursuant to Section 5.06(b)(ii)(D), the Servicer shall

 

 

instruct the Indenture Trustee to withdraw from the Reserve
Account on such Distribution Date an amount equal to such excess,
to the extent of funds available therein, after giving effect to
paragraphs (d)(i) and (e)(i) above, up to the Certificate Interest
Reserve Amount with respect to such Distribution Date, and deposit
such amount into the Certificate Distribution Account.

          (iii) In the event that the Certificateholders’
Principal Distributable Amount on the Final Scheduled Distribution
Date exceeds the amount deposited in the Certificate Distribution
Account pursuant to Section 5.06(b)(ii)(E), the Servicer shall
instruct the Indenture Trustee to withdraw from the Reserve
Account on such Distribution Date an amount equal to such excess,
to the extent of funds available therein after giving effect to
paragraphs (d) and (e)(i) above, and deposit such amount into the
Certificate Distribution Account.

               (f) Subject to Section 9.01, amounts will
continue to be applied pursuant to Section 5.06(b) following payment in
full of the Outstanding Amount of the Notes and the Certificate Balance
until the Pool Balance is reduced to zero. Following the payment in full of
the aggregate Outstanding Amount of the Notes and the Certificate Balance
and of all other amounts owing or to be distributed hereunder or under the
Indenture or the Trust Agreement to Noteholders and Certificateholders and
the termination of the Trust, any amount remaining on deposit in the
Reserve Account shall be distributed to the Company.

               (g) On the Final Scheduled Distribution Date, if
the amount of funds remaining in the Reserve Account (after all other
distributions to be made from the Reserve Account pursuant to this Section
have been made, other than paragraphs (b)(i) and (f)) is in excess of the
amounts described below, a portion of such excess according to the
following schedule shall be deposited in the Certificate Distribution
Account for distribution to Certificateholders:

         (i) with respect to all such funds in the
Reserve Account in excess of $___but which do not exceed
$                    , 20% of such amount;

         (ii) with respect to all such funds in the
Reserve Account in excess of $___but which do not exceed
$                    , 40% of such amount;

         (iii) with respect to all such funds in the
Reserve Account in excess of $___but which do not exceed
$                    , 60% of such amount;

         (iv) with respect to all such funds in the
Reserve Account in excess of $___but which do not exceed
$                    , 80% of such amount; and

         (v) with respect to all such funds in the
Reserve Account in excess of $___, 100% of such amount.

          The amounts to be deposited in the Certificate
Distribution Account pursuant to the preceding sentence are in excess of
all amounts otherwise required to be deposited in the Certificate
Distribution Account pursuant to this Agreement, notwithstanding anything
to the contrary contained herein.

          Section 5.08 Statements to Certificateholders and
Noteholders. (a) On each Distribution Date, the Servicer shall provide to
the Indenture Trustee (with a copy to the Rating Agencies and each Paying
Agent) for the Indenture Trustee to forward to each Noteholder of record as
of the most recent Record Date and to the Owner Trustee (with a copy to
each Paying Agent) for the Owner Trustee to forward to each
Certificateholder of record as of the most recent Record Date a statement
substantially in the form of Exhibit B setting forth at least the following
information as to the Notes and the Certificates to the extent applicable:

         (i) the amount of such distribution allocable to
principal allocable to each Class of Notes and to the
Certificates;

         (ii) the amount of such distribution allocable

 

 

to interest allocable to each Class of Notes and to the
Certificates;

               (iii) the outstanding principal balance of each
Class of Notes, the Note Pool Factor for each such Class, the
Certificate Balance and the Certificate Pool Factor as of the
close of business on the last day of the preceding Collection
Period, after giving effect to payments allocated to principal
reported under clause (i) above;

               (iv) the amount of the Servicing Fee paid to the
Servicer with respect to the related Collection Period;

               (v) the amount of Realized Losses, if any, with
respect to the related Collection Period;

               (vi) the balance of the Reserve Account on such
Payment Determination Date after giving effect to deposits and
withdrawals to be made on the next following Distribution Date, if
any;

               (vii) the aggregate Payahead Balance; and

               (viii) the Pool Balance as of the close of
business on the last day of the related Collection Period, after
giving effect to payments allocated to principal reported under
subsection (a)(i) above, as reconciled.

          Each amount set forth reconciling amounts on the
Distribution Date statement under clauses (i), (ii) or (iv) above shall be
expressed as a dollar amount per $1,000 of original principal balance of a
Certificate or Note, as applicable.

          Section 5.09 Net Deposits. As an administrative
convenience, unless the Servicer is required to remit collections daily,
the Servicer will be permitted to make the deposit of collections on the
Receivables, aggregate Advances and Purchase Amounts for or with respect to
the Collection Period net of distributions to be made to the Servicer with
respect to the Collection Period. The Servicer, however, will account to
the Owner Trustee, the Indenture Trustee, the Noteholders and the
Certificateholders as if all deposits, distributions and transfers were
made individually.

ARTICLE VI

The Company

          Section 6.01 Representations of the Company. The Company
makes the following representations on which the Issuer is deemed to have
relied in acquiring the Receivables. The representations speak as of the
execution and delivery of this Agreement and as of the Closing Date and
shall survive the sale of the Receivables to the Issuer and the pledge
thereof to the Indenture Trustee pursuant to the Indenture.

                     (a) Organization and Good Standing. The Company
is duly organized and validly existing as a corporation in good standing
under the laws of the State of Delaware, with the corporate power and
authority to own its properties and to conduct its business as such
properties are currently owned and such business is presently conducted,
and had at all relevant times, and has, the corporate power, authority and
legal right to acquire and own the Receivables.

                     (b) Due Qualification. The Company is duly
qualified to do business as a foreign corporation in good standing, and has
obtained all necessary licenses and approvals, in all jurisdictions in
which the ownership or lease of property or the conduct of its business
shall require such qualifications.

                     (c) Power and Authority. The Company has the
corporate power and authority to execute and deliver this Agreement and to
carry out its terms; the Company has full power and authority to sell and
assign the property to be sold and assigned to and deposited with the
Issuer, and the Company shall have duly authorized such sale and assignment
to the Issuer by all necessary corporate action; and the execution,
delivery and performance of this Agreement has been duly authorized by the
Company by all necessary corporate action.

                     (d) Binding Obligation. This Agreement

 

 

constitutes a legal, valid and binding obligation of the Company
enforceable in accordance with its terms, subject to applicable bankruptcy,
insolvency, reorganization and similar laws now or hereafter in effect
relating to or affecting creditors’ rights generally and to general
principles of equity (whether applied in a proceeding at law or in equity).

               (e) No Violation. The consummation of the
transactions contemplated by this Agreement and the fulfillment of the
terms hereof do not conflict with, result in any breach of any of the terms
and provisions of, or constitute (with or without notice or lapse of time)
a default under, the articles of incorporation or bylaws of the Company, or
any material term of any indenture, agreement or other instrument to which
the Company is a party or by which it is bound; or result in the creation
or imposition of any Lien upon any of its properties pursuant to the terms
of any such indenture, agreement or other instrument (other than pursuant
to the Basic Documents); or violate any law or, to the best of the
Company’s knowledge, any order, rule or regulation applicable to the
Company of any court or of any federal or state regulatory body,
administrative agency or other governmental instrumentality having
jurisdiction over the Company or its properties.

               (f) No Proceedings. There are no proceedings or
investigations pending or, to the Company’s knowledge, threatened, before
any court, regulatory body, administrative agency or other governmental
instrumentality having jurisdiction over the Company or its properties: (i)
asserting the invalidity of this Agreement, the Indenture or any of the
other Basic Documents, the Notes or the Certificates, (ii) seeking to
prevent the issuance of the Notes or the Certificates or the consummation
of any of the transactions contemplated by this Agreement, the Indenture or
any of the other Basic Documents, (iii) seeking any determination or ruling
that might materially and adversely affect the performance by the Company
of its obligations under, or the validity or enforceability of, this
Agreement, the Indenture, any of the other Basic Documents, the Notes or
the Certificates or (iv) relating to the Company and which might materially
and adversely affect the federal or state income tax attributes of the
Notes or the Certificates.

          Section 6.02 Corporate Existence. During the term of this
Agreement, the Company will keep in full force and effect its existence,
rights and franchises as a corporation under the laws of the jurisdiction
of its incorporation and will obtain and preserve its qualification to do
business in each jurisdiction in which such qualification is or shall be
necessary to protect the validity and enforceability of this Agreement, the
Basic Documents and each other instrument or agreement necessary or
appropriate to the proper administration of this Agreement and the
transactions contemplated hereby. In addition, all transactions and
dealings between the Company and its Affiliates will be conducted on an
arm’s-length basis.

          Section 6.03 Liability of the Company. The Company shall
be liable in accordance herewith only to the extent of the obligations
specifically undertaken and the representations and warranties made by the
Company under this Agreement.

          Section 6.04 Merger or Consolidation of, or Assumption of
the Obligations of the Company. Any Person (a) into which the Company may
be merged or consolidated, (b) which may result from any merger or
consolidation to which the Company shall be a party or (c) which may
succeed to substantially all of the properties and assets of the Company,
which person in any of the foregoing cases executes an agreement of
assumption to perform every obligation of the Company under this Agreement,
shall be the successor to the Company hereunder without the execution or
filing of any document or any further act by any of the parties to this
Agreement; provided, however, that (i) immediately after giving effect to
such transaction, no representation or warranty made pursuant to Section
3.01 shall have been breached and no Servicer Default, and no event that,
after notice or lapse of time, or both, would become a Servicer Default
shall have occurred and be continuing, (ii) the Company shall have

 

 

delivered to the Owner Trustee and the Indenture Trustee an Officers’
Certificate and an Opinion of Counsel each stating that such consolidation,
merger or succession and such agreement of assumption comply with this
Section and that all conditions precedent, if any, provided for in this
Agreement relating to such transaction have been complied with, (iii) the
Rating Agency Condition shall have been satisfied with respect to such
transaction and (iv) the Company shall have delivered to the Owner Trustee
and the Indenture Trustee an Opinion of Counsel either (A) stating that, in
the opinion of such counsel, all financing statements and continuation
statements and amendments thereto have been executed and filed that are
necessary fully to preserve and protect the interest of the Owner Trustee
and Indenture Trustee, respectively, in the Receivables and reciting the
details of such filings, or (B) stating that, in the opinion of such
counsel, no such action shall be necessary to preserve and protect such
interests. Notwithstanding anything herein to the contrary, the execution
of the foregoing agreement of assumption and compliance with clauses (i),
(ii), (iii) and (iv) above shall be conditions to the consummation of the
transactions referred to in clauses (a), (b) or (c) above.

          Section 6.05 Limitation on Liability of the Company and
Others. The Company and any director, officer, employee or agent of the
Company may rely in good faith on the advice of counsel or on any document
of any kind, prima facie properly executed and submitted by any Person
respecting any matters arising hereunder. The Company shall not be under
any obligation to appear in, prosecute or defend any legal action that
shall not be related to its respective obligations under this Agreement,
and that in the Company’s opinion may involve it in any expense or
liability.

          Section 6.06 The Company May Own Certificates or Notes.
The Company and any Affiliate thereof may in their individual or any other
capacity become the owner or pledgee of Certificates or Notes with the same
rights as they would have if it were not the Company or an Affiliate
thereof, except as expressly provided herein or in any Basic Document.

ARTICLE VII

The Servicer

          Section 7.01 Representations of Servicer. The Servicer
makes the following representations on which the Issuer is deemed to have
relied in acquiring the Receivables. The representations speak as of the
execution and delivery of this Agreement and as of the Closing Date, and
shall survive the sale of the Receivables to the Issuer and the pledge
thereof to the Indenture Trustee pursuant to the Indenture.

               (a) Organization and Good Standing. The Servicer
is duly organized and validly existing as a corporation in good standing
under the laws of the state of its incorporation with the corporate power
and authority to own its properties and to conduct its business as such
properties are currently owned and such business is presently conducted,
and had at all relevant times, and has, the corporate power, authority and
legal right to acquire, own, sell and service the Receivables and to hold
the Receivable Files as custodian on behalf of the Trust and the Indenture
Trustee.

               (b) Due Qualification. The Servicer is duly
qualified to do business as a foreign corporation in good standing, and has
obtained all necessary licenses and approvals, in all jurisdictions in
which the ownership or lease of property or the conduct of its business
(including the servicing of the Receivables as required by this Agreement)
shall require such qualifications.

               (c) Power and Authority. The Servicer has the
corporate power and authority to execute and deliver this Agreement and to
carry out its terms; and the execution, delivery and performance of this
Agreement have been duly authorized by the Servicer by all necessary
corporate action.

               (d) Binding Obligation. This Agreement
constitutes a legal, valid and binding obligation of the Servicer
enforceable in accordance with its terms, subject to applicable bankruptcy,

 

 

insolvency, reorganization and similar laws now or hereafter in effect
relating to or affecting creditor’s rights generally and to general
principles of equity (whether applied in a proceeding at law or in equity).

               (e) No Violation. The consummation of the
transactions contemplated by this Agreement and the fulfillment of the
terms hereof shall not conflict with, result in any breach of any of the
terms and provisions of, or constitute (with or without notice or lapse of
time) a default under, the articles of incorporation or bylaws of the
Servicer, or any material term of any indenture, agreement or other
instrument to which the Servicer is a party or by which it is bound; or
result in the creation or imposition of any Lien upon any of its properties
pursuant to the terms of any such indenture, agreement or other instrument
(other than this Agreement); or violate any law or, to the best of the
Servicer’s knowledge, any order, rule or regulation applicable to the
Servicer of any court or of any federal or state regulatory body,
administrative agency or other governmental instrumentality having
jurisdiction over the Servicer or its properties.

               (f) No Proceedings. To the Servicer’s best
knowledge, there are no proceedings or investigations pending, or
threatened, before any court, regulatory body, administrative agency or
other governmental instrumentality having jurisdiction over the Servicer or
its properties: (i) asserting the invalidity of this Agreement, the
Indenture, any of the other Basic Documents, the Notes or the Certificates,
(ii) seeking to prevent the issuance of the Notes or the Certificates or
the consummation of any of the transactions contemplated by this Agreement,
the Indenture or any of the other Basic Documents, (iii) seeking any
determination or ruling that might materially and adversely affect the
performance by the Servicer of its obligations under, or the validity or
enforceability of, this Agreement, the Indenture, any of the other Basic
Documents, the Notes or the Certificates or (iv) relating to the Servicer
and which might materially and adversely affect the federal or state income
tax attributes of the Notes or the Certificates.

               (g) No Insolvent Obligors. As of the related
Cutoff Date, no Obligor on a Receivable is shown on the Receivable Files as
the subject of a bankruptcy proceeding.

          Section 7.02 Indemnities of Servicer. The Servicer shall
be liable in accordance herewith only to the extent of the obligations
specifically undertaken by the Servicer under this Agreement:

               (a) The Servicer shall indemnify, defend and
hold harmless the Issuer, the Owner Trustee, the Indenture Trustee, the
Noteholders, the Certificateholders and the Company and any of the
officers, directors, employees and agents of the Issuer, the Owner Trustee
and the Indenture Trustee from and against any and all costs, expenses,
losses, damages, claims and liabilities, arising out of or resulting from
the use, ownership or operation by the Servicer or any Affiliate thereof of
a Financed Vehicle.

               (b) The Servicer shall indemnify, defend and
hold harmless the Issuer, the Owner Trustee, the Indenture Trustee, the
Company, the Certificateholders and the Noteholders and any of the
officers, directors, employees and agents of the Issuer, the Owner Trustee
and the Indenture Trustee from and against any and all costs, expenses,
losses, claims, damages and liabilities to the extent that such cost,
expense, loss, claim, damage or liability arose out of, or was imposed upon
any such Person through, the negligence, willful misfeasance or bad faith
of the Servicer in the performance of its duties under this Agreement or by
reason of reckless disregard of its obligations and duties under this
Agreement.

          For purposes of this Section, in the event of the
termination of the rights and obligations of the Servicer (or any successor
thereto pursuant to Section 7.03) as Servicer pursuant to Section 8.01, or
a resignation by such Servicer pursuant to this Agreement, such Servicer
shall be deemed to be the Servicer pending appointment of a successor
Servicer (other than the Indenture Trustee) pursuant to Section 8.02.

 

 

          Indemnification under this Section shall survive the
resignation or removal of the Owner Trustee or the Indenture Trustee or the
termination of this Agreement and shall include reasonable fees and
expenses of counsel and expenses of litigation. If the Servicer shall have
made any indemnity payments pursuant to this Section and the Person to or
on behalf of whom such payments are made thereafter collects any of such
amounts from others, such Person shall promptly repay such amounts to the
Servicer, without interest.

          Section 7.03 Merger or Consolidation of, or Assumption of
the Obligations of, Servicer. Any Person (a) into which the Servicer may be
merged or consolidated, (b) which may result from any merger or
consolidation to which the Servicer shall be a party or (c) which may
succeed to substantially all of the properties and assets of the Servicer,
which Person executed an agreement of assumption to perform every
obligation of the Servicer hereunder, shall be the successor to the
Servicer under this Agreement without further act on the part of any of the
parties to this Agreement; provided, however, that (i) immediately after
giving effect to such transaction, no Servicer Default and no event which,
after notice or lapse of time, or both, would become a Servicer Default
shall have occurred and be continuing, (ii) the Servicer shall have
delivered to the Owner Trustee and the Indenture Trustee an Officers’
Certificate and an Opinion of Counsel each stating that such consolidation,
merger or succession and such agreement of assumption comply with this
Section and that all conditions precedent provided for in this Agreement to
such transaction have been complied with, (iii) the Rating Agency Condition
shall have been satisfied with respect to such transaction and (iv) the
Servicer shall have delivered to the Owner Trustee and the Indenture
Trustee an Opinion of Counsel stating that, in the opinion of such counsel,
either (A) all financing statements and continuation statements and
amendments thereto have been executed and filed that are necessary fully to
preserve and protect the interest of the Owner Trustee and the Indenture
Trustee, respectively, in the Receivables and reciting the details of such
filings or (B) no such action shall be necessary to preserve and protect
such interests. Notwithstanding anything herein to the contrary, the
execution of the foregoing agreement of assumption and compliance with
clauses (i), (ii), (iii) and (iv) above shall be conditions to the
consummation of the transactions referred to in clause (a), (b) or (c)
above.

          Section 7.04 Limitation on Liability of Servicer and
Others. Neither the Servicer nor any of the directors, officers, employees
or agents of the Servicer shall be under any liability to the Issuer, the
Owner Trustee, the Indenture Trustee, the Noteholders or the
Certificateholders, except as provided under this Agreement, for any action
taken or for refraining from the taking of any action pursuant to this
Agreement or for errors in judgment; provided, however, that this provision
shall not protect the Servicer or any such person against any liability
that would otherwise be imposed by reason of willful misfeasance, bad faith
or negligence in the performance of duties or by reason of reckless
disregard of obligations and duties under this Agreement. The Servicer and
any director, officer, employee or agent of the Servicer may rely in good
faith on any document of any kind prima facie properly executed and
submitted by any person respecting any matters arising under this
Agreement.

          Except as provided in this Agreement, the Servicer shall
not be under any obligation to appear in, prosecute or defend any legal
action that shall not be related to its duties to service the Receivables
in accordance with this Agreement and that in its opinion may involve it in
any expense or liability; provided, however, that the Servicer may
undertake any reasonable action that it may deem necessary or desirable in
respect of this Agreement and the Basic Documents and the rights and duties
of the parties to this Agreement and the Basic Documents and the interests
of the Certificateholders under this Agreement and the Noteholders under
the Indenture.

 

 

          Section 7.05 Servicer Not To Resign. Subject to the
provisions of Section 7.03, the Servicer shall not resign from the
obligations and duties hereby imposed on it as Servicer under this
Agreement except upon a determination that the performance of its duties
under this Agreement shall no longer be permissible under applicable law.
Notice of any such determination permitting the resignation of the Servicer
shall be communicated to the Owner Trustee and the Indenture Trustee at the
earliest practicable time (and, if such communication is not in writing,
shall be confirmed in writing at the earliest practicable time) and any
such determination shall be evidenced by an Opinion of Counsel to such
effect delivered to the Owner Trustee and the Indenture Trustee
concurrently with or promptly after such notice. No such resignation shall
become effective until the Indenture Trustee or a successor Servicer shall
have assumed the responsibilities and obligations of the Servicer in
accordance with Section 8.02.

ARTICLE VIII

Default

          Section 8.01 Servicer Default. If any one of the
following events (a “Servicer Default”) shall occur and be continuing:

                    (a) any failure by the Servicer to deliver to
the Indenture Trustee for deposit in any of the Trust Accounts or the
Certificate Distribution Account any required payment or to direct the
Indenture Trustee to make any required distributions therefrom, which
failure continues unremedied for a period of three Business Days after
written notice of such failure is received by the Servicer from the Owner
Trustee or the Indenture Trustee or after discovery of such failure by an
officer of the Servicer; or

                    (b) failure by the Servicer or the Company, as
the case may be, duly to observe or to perform in any material respect any
other covenants or agreements of the Servicer or the Company (as the case
may be) set forth in this Agreement or any other Basic Document, which
failure shall (i) materially and adversely affect the rights of
Certificateholders or Noteholders and (ii) continue unremedied for a period
of 60 days after the date on which written notice of such failure,
requiring the same to be remedied, shall have been given (A) to the
Servicer or the Company (as the case may be) by the Owner Trustee or the
Indenture Trustee or (B) to the Servicer or the Company (as the case may
be), and to the Owner Trustee and the Indenture Trustee by the Holders of
Notes or Certificates, as applicable, evidencing not less than 25% of the
Outstanding Amount of the Notes or 25% of the outstanding Certificate
Balance; or

                    (c) the occurrence of an Insolvency Event with
respect to the Company, the Servicer or the Company;
then, and in each and every case, so long as the Servicer Default shall not
have been remedied, either the Indenture Trustee or the Holders of Notes
evidencing not less than a majority of the Outstanding Amount of the Notes,
by notice then given in writing to the Servicer (and to the Indenture
Trustee and the Owner Trustee if given by the Noteholders) may terminate
all the rights and obligations (other than the obligations set forth in
Section 7.02 hereof) of the Servicer under this Agreement. On or after the
receipt by the Servicer of such written notice, all authority and power of
the Servicer under this Agreement, whether with respect to the Notes, the
Certificates or the Receivables or otherwise, shall, without further
action, pass to and be vested in the Indenture Trustee or such successor
Servicer as may be appointed under Section 8.02; and, without limitation,
the Indenture Trustee and the Owner Trustee are hereby authorized and
empowered to execute and deliver, for the benefit of the predecessor
Servicer, as attorney-in-fact, or otherwise, any and all documents and
other instruments, and to do or accomplish all other acts or things
necessary or appropriate to effect the purposes of such notice of
termination, whether to complete the transfer and endorsement of the
Receivables and related documents, or otherwise. The predecessor Servicer
shall cooperate with the successor Servicer, the Indenture Trustee and the

 

 

Owner Trustee in effecting the termination of the responsibilities and
rights of the predecessor Servicer under this Agreement, including the
transfer to the successor Servicer for administration by it of all cash
amounts that shall at the time be held by the predecessor Servicer for
deposit, or shall thereafter be received by it with respect to any
Receivable. All reasonable costs and expenses (including attorneys’ fees)
incurred in connection with transferring the Receivable Files to the
successor Servicer and amending this Agreement to reflect such succession
as Servicer pursuant to this Section shall be paid by the predecessor
Servicer upon presentation of reasonable documentation of such costs and
expenses. Upon receipt of notice of the occurrence of a Servicer Default,
the Owner Trustee shall give notice thereof to the Rating Agencies.

          Section 8.02 Appointment of Successor. (a) Upon the
Servicer’s receipt of notice of termination pursuant to Section 8.01 or the
Servicer’s resignation in accordance with the terms of this Agreement, the
predecessor Servicer shall continue to perform its functions as Servicer
under this Agreement, in the case of termination, only until the date
specified in such termination notice or, if no such date is specified in a
notice of termination, until receipt of such notice and, in the case of
resignation, until the earlier of (i) the date 45 days from the delivery to
the Owner Trustee and the Indenture Trustee of written notice of such
resignation (or written confirmation of such notice) in accordance with the
terms of this Agreement and (ii) the date upon which the predecessor
Servicer shall become unable to act as Servicer, as specified in the notice
of resignation and accompanying Opinion of Counsel. In the event of the
Servicer’s termination hereunder, the Indenture Trustee shall appoint a
successor Servicer, and the successor Servicer shall accept its appointment
by a written assumption in form acceptable to the Owner Trustee and the
Indenture Trustee. In the event that a successor Servicer has not been
appointed at the time when the predecessor Servicer has ceased to act as
Servicer in accordance with this Section, the Indenture Trustee without
further action shall automatically be appointed the successor Servicer and
shall be entitled to the Servicing Fee. Notwithstanding the above, the
Indenture Trustee shall, if it shall be legally unable so to act, appoint
or petition a court of competent jurisdiction to appoint any established
institution, having a net worth of not less than $100,000,000 and whose
regular business shall include the servicing of automotive receivables, as
the successor to the Servicer under this Agreement.

               (b) Upon appointment, the successor Servicer
(including the Indenture Trustee acting as successor Servicer) shall be the
successor in all respects to the predecessor Servicer and shall be subject
to all the responsibilities, duties and liabilities arising thereafter
relating thereto placed on the predecessor Servicer and shall be entitled
to the Servicing Fee and all the rights granted to the predecessor Servicer
by the terms and provisions of this Agreement.

               (c) The Servicer may not resign unless it is
prohibited from serving as such by law.

          Section 8.03 Repayment of Advances. If the Servicer shall
change, the predecessor Servicer shall be entitled to receive reimbursement
for Outstanding Advances pursuant to Sections 5.03 and 5.04 with respect to
all Advances made by the predecessor Servicer.

          Section 8.04 Notification to Noteholders and
Certificateholders. Upon any termination of, or appointment of a successor
to, the Servicer pursuant to this Article VIII, the Owner Trustee shall
give prompt written notice thereof to Certificateholders, and the Indenture
Trustee shall give prompt written notice thereof to Noteholders and the
Rating Agencies.

          Section 8.05 Waiver of Past Defaults. The Holders of
Notes evidencing not less than a majority of the Outstanding Amount of the
Notes or the Holders (as defined in the Trust Agreement) of Certificates
evidencing not less than a majority of the outstanding Certificate Balance
(in the case of any default which does not adversely affect the Indenture
Trustee or the Noteholders) may, on behalf of all Noteholders and

 

 

Certificateholders, waive in writing any default by the Servicer in the
performance of its obligations hereunder and its consequences, except a
default in making any required deposits to or payments from any of the
Trust Accounts in accordance with this Agreement. Upon any such waiver of a
past default, such default shall cease to exist, and any Servicer Default
arising therefrom shall be deemed to have been remedied for every purpose
of this Agreement. No such waiver shall extend to any subsequent or other
default or impair any right consequent thereto.

ARTICLE IX

Termination

          Section 9.01 Optional Purchase of All Receivables. (a) As
of the last day of any Collection Period immediately preceding a
Distribution Date as of which the then outstanding Pool Balance is 10% or
less of the Original Pool Balance and the Class A-1 Notes have been paid in
full, the Servicer shall have the option to purchase the Owner Trust
Estate, other than the Trust Accounts and the Certificate Distribution
Account; provided, however, that, unless Moody’s agrees otherwise, the
Servicer may not effect any such purchase if the rating of the Servicer’s
long-term debt obligations is less than Baa3 by Moody’s, unless the Owner
Trustee and the Indenture Trustee shall have received an Opinion of Counsel
to the effect that such purchase would not constitute a fraudulent
conveyance. To exercise such option, the Servicer shall deposit pursuant to
Section 5.05 in the Collection Account an amount equal to the aggregate
Purchase Amount for the Receivables (including defaulted Receivables), plus
the appraised value of any such other property held by the Trust other than
the Trust Accounts and the Certificate Distribution Account, such value to
be determined by an appraiser mutually agreed upon by the Servicer, the
Owner Trustee and the Indenture Trustee, and shall succeed to all interests
in and to the Trust. Notwithstanding the foregoing, the Servicer shall not
be permitted to exercise such option unless the amount to be deposited in
the Collection Account pursuant to the preceding sentence is greater than
or equal to the sum of the outstanding principal balance of the Notes and
the Certificate Balance and all accrued but unpaid interest (including any
overdue interest and premium) thereon.

               (b) Upon any sale of the assets of the Trust
pursuant to Section 9.02 of the Trust Agreement, the Servicer shall
instruct the Indenture Trustee to deposit the proceeds from such sale after
all payments and reserves therefrom have been made (the “Insolvency
Proceeds”) in the Collection Account. On the Distribution Date on which the
Insolvency Proceeds are deposited in the Collection Account (or, if such
proceeds are not so deposited on a Distribution Date, on the Distribution
Date immediately following such deposit), the Servicer shall instruct the
Indenture Trustee to make the following deposits (after the application on
such Distribution Date of the Total Distribution Amount and funds on
deposit in the Reserve Account pursuant to Sections 5.06 and 5.07) from the
Insolvency Proceeds and any funds remaining on deposit in the Reserve
Account (including the proceeds of any sale of investments therein as
described in the following sentence):

        (i) to the Note Distribution Account, any
portion of the Noteholders’ Interest Distributable Amount not
otherwise deposited into the Note Distribution Account on such
Distribution Date;

        (ii) to the Note Distribution Account, the
outstanding principal balance of the Notes (after giving effect to
the reduction in the outstanding principal balance of the Notes to
result from the deposits made in the Note Distribution Account on
such Distribution Date and on prior Distribution Dates);

        (iii) to the Certificate Distribution Account,
any portion of the Certificateholders’ Interest Distributable
Amount not otherwise deposited into the Certificate Distribution
Account on such Distribution Date; and

        (iv) to the Certificate Distribution Account,
the Certificate Balance after giving effect to the reduction in

 

 

the Certificate Balance to result from the deposits made in the
Certificate Distribution Account on such Distribution Date).

          Any investments on deposit in the Reserve Account or Note
Distribution Account which will not mature on or before such Distribution
Date shall be sold by the Indenture Trustee at such time as will result in
the Indenture Trustee receiving the proceeds from such sale not later than
the Payment Determination Date preceding such Distribution Date. Any
Insolvency Proceeds remaining after the deposits described above shall be
paid to the Company.

               (c) As described in Article IX of the Trust
Agreement, notice of any termination of the Trust shall be given by the
Servicer to the Owner Trustee and the Indenture Trustee as soon as
practicable after the Servicer has received notice thereof.

               (d) Following the satisfaction and discharge of
the Indenture and the payment in full of the principal of and interest on
the Notes, the Certificateholders will succeed to the rights of the
Noteholders hereunder other than Section 5.07(b) and the Owner Trustee will
succeed to the rights of, and assume the obligations of, the Indenture
Trustee pursuant to this Agreement.

ARTICLE X

Miscellaneous

          Section 10.01 Amendment. This Agreement may be amended by
the Company, the Servicer and the Issuer, with the consent of the Indenture
Trustee, but without the consent of any of the Noteholders or the
Certificateholders, to cure any ambiguity, to correct or supplement any
provisions in this Agreement or for the purpose of adding any provisions to
or changing in any manner or eliminating any of the provisions in this
Agreement or of modifying in any manner the rights of the Noteholders or
the Certificateholders; provided, however, that such action shall not, as
evidenced by an Opinion of Counsel delivered to the Owner Trustee and the
Indenture Trustee, adversely affect in any material respect the interests
of any Noteholder or Certificateholder. This Agreement may also be amended
from time to time by the Company, the Servicer and the Issuer, with the
consent of the Holders of Notes evidencing not less than a majority of the
Outstanding Amount of the Notes and the consent of the Holders (as defined
in the Trust Agreement) of outstanding Certificates evidencing not less
than a majority of the outstanding Certificate Balance, 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 Noteholders or the Certificateholders; provided, however, that no
such amendment shall (a) except as otherwise provided in the first
paragraph of this Section, increase or reduce in any manner the amount of,
or accelerate or delay the timing of, collections of payments on
Receivables or distributions that shall be required to be made for the
benefit of the Noteholders or the Certificateholders or (b) reduce the
aforesaid percentage of the Outstanding Amount of the Note and the
Certificate Balance, the Holders of which are required to consent to any
such amendment, without the consent of the Holders of all the outstanding
Notes and the Holders (as defined in the Trust Agreement) of all the
outstanding Certificates.

          Promptly after the execution of any such amendment or
consent, the Owner Trustee shall furnish written notification of the
substance of such amendment or consent to each Certificateholder, the
Indenture Trustee and each of the Rating Agencies.

          It shall not be necessary for the consent of
Certificateholders or Noteholders pursuant to this Section to approve the
particular form of any proposed amendment or consent, but it shall be
sufficient if such consent shall approve the substance thereof.

          Prior to the execution of any amendment to this
Agreement, the Owner Trustee and the Indenture Trustee shall be entitled to
receive and rely upon an Opinion of Counsel stating that the execution of
such amendment is authorized or permitted by this Agreement and the Opinion
of Counsel referred to in Section 10.02(i)(1). The Owner Trustee and the

 

 

Indenture Trustee may, but shall not be obligated to, enter into any such
amendment which affects the Owner Trustee’s or the Indenture Trustee’s, as
applicable, own rights, duties or immunities under this Agreement or
otherwise.

          Section 10.02 Protection of Title to Trust. (a) The
Company and the Servicer shall execute and file such financing statements
and cause to be executed and filed such continuation statements, all in
such manner and in such places as may be required by law fully to preserve,
maintain and protect the interest of the Issuer and of the Indenture
Trustee in the Receivables and in the proceeds thereof. The Company and the
Servicer shall deliver (or cause to be delivered) to the Owner Trustee and
the Indenture Trustee file-stamped copies of, or filing receipts for, any
document filed as provided above, as soon as available following such
filing.

               (b) Neither the Company nor the Servicer shall
change their respective name, identity or corporate structure in any manner
that would, could or might make any financing statement or continuation
statement or continuation statement filed in accordance with paragraph (a)
above seriously misleading within the meaning of (S) 9-4.02(7) of the UCC,
unless the Company or the Servicer, as the case may be, shall have given
the Owner Trustee and the Indenture Trustee at least five days’ prior
written notice thereof and shall have promptly filed appropriate amendments
to all previously filed financing statements or continuation statements.

               (c) The Company and the Servicer shall have an
obligation to give the Owner Trustee and the Indenture Trustee at least 60
days’ prior written notice of any relocation of its principal executive
office if, as a result of such relocation, the applicable provisions of the
UCC would require the filing of any amendment of any previously filed
financing or continuation statement or of any new financing statement and
shall promptly file any such amendment or new financing statement. The
Servicer shall at all times maintain each office from which it shall
service Receivables, and its principal executive office, within the United
States of America.

               (d) The Servicer shall maintain accounts and
records as to each Receivable accurately and in sufficient detail to permit
(i) the reader thereof to know at any time the status of such Receivable,
including payments and recoveries made and payments owing (and the nature
of each) and (ii) reconciliation between payments or recoveries on (or with
respect to) each Receivable and the amounts from time to time deposited in
the Collection Account and the Payahead Account in respect of such
Receivable.

               (e) The Servicer shall maintain its computer
systems so that, from and after the time of sale under this Agreement of
the Receivables, the Servicer’s master computer records (including any
backup archives) that refer to a Receivable shall indicate clearly the
interest of the Issuer and the Indenture Trustee in such Receivable and
that such Receivable is owned by the Issuer and has been pledged to the
Indenture Trustee. Indication of the Issuer’s and the Indenture Trustee’s
interest in a Receivable shall be deleted from or modified on the
Servicer’s computer systems when, and only when, the related Receivable
shall have been paid in full or repurchased.

               (f) If at any time the Company or the Servicer
shall propose to sell, grant a security interest in or otherwise transfer
any interest in automotive receivables to any prospective purchaser, lender
or other transferee, the Servicer shall give to such prospective purchaser,
lender or other transferee computer tapes, records or printouts (including
any restored from backup archives) that, if they shall refer in any manner
whatsoever to any Receivable, shall indicate clearly that such Receivable
has been sold and is owned by the Issuer and has been pledged to the
Indenture Trustee.

               (g) The Servicer shall permit the Indenture
Trustee and its agents to inspect, audit and make copies of and abstracts
from the Servicer’s records regarding any Receivable at any time during
normal business hours upon reasonable notice.

 

 

               (h) Upon request, the Servicer shall furnish to
the Owner Trustee or to the Indenture Trustee, within five Business Days, a
list of all Receivables (by contract number and name of Obligor) then held
as part of the Trust, together with a reconciliation of such list to the
Schedule of Receivables and to each of the Servicer’s Certificates
furnished before such request indicating removal of Receivables from the
Trust.

               (i) The Servicer shall deliver to the Owner
Trustee and the Indenture Trustee:

               (1) promptly after the execution and
delivery of this Agreement and of each amendment hereto, an
Opinion of Counsel stating that, in the opinion of such counsel,
either (A) all financing statements and continuation statements
have been executed and filed that are necessary fully to preserve
and protect the interest of the Owner Trustee and the Indenture
Trustee in the Receivables, and reciting the details of such
filings or referring to prior Opinions of Counsel in which such
details are given, or (B) no such action shall be necessary to
preserve and protect such interest; and

               (2) within 90 days after the beginning of
each calendar year beginning with the first calendar year
beginning more than three months after the Cutoff Date to occur,
an Opinion of Counsel, dated as of a date during such 90-day
period, stating that, in the opinion of such counsel, either (A)
all financing statements and continuation statements have been
executed and filed that are necessary fully to preserve and
protect the interest of the Owner Trustee and the Indenture
Trustee in the Receivables, and reciting the details of such
filings or referring to prior Opinions of Counsel in which such
details are given, or (B) no such action shall be necessary to
preserve and protect such interest.

Each Opinion of Counsel referred to in clause (1) or (2) above shall
specify any action necessary (as o the date of such opinion) to be taken in
the following year to preserve and protect such interest.

               (j) The Company shall, to the extent required by
applicable law, cause the Certificates and the Notes to be registered with
the Commission pursuant to Section 12(b) or Section 12(g) of the Exchange
Act within the time periods specified in such sections.

          Section 10.03 Notices. All demands, notices,
communications and instructions upon or to the Company, the Servicer, the
Owner Trustee, the Indenture Trustee or the Rating Agencies under this
Agreement shall be in writing, personally delivered or mailed by certified
mail, return receipt requested, and shall be deemed to have been duly given
upon receipt (a) in the case of the Company,                     ,
Attention                     ; (b) in the case of the Servicer, to
                                        , Attention                     ; (c) in the case
of the Indenture Trustee, at the Corporate Trust Office; (d) in the case of
the Owner Trustee, at the Corporate Trust Office; (e) in the case of the
Rating Agencies,                                          ; or, as to each
of the foregoing, at such other address as shall be designated -by written
notice to the other parties.

          Section 10.04 Assignment by the Company or the Servicer.
Notwithstanding anything to the contrary contained herein, except as
provided in the remainder of this Section, as provided in Sections 6.04 and
7.03 herein and as provided in the provisions of this Agreement concerning
the resignation of the Servicer, this Agreement may not be assigned by the
Company or the Servicer. The Issuer and the Servicer hereby acknowledge and
consent to the conveyance and assignment by the Company
to                    , of any and all of the Company rights and
interests (and corresponding obligations, if any) hereunder with respect to
receiving amounts from the Reserve Account, and the Issuer and the Servicer
hereby agree that any such assignee of the Company, shall be entitled to

 

 

enforce such rights and interests directly against the Issuer as if such
assignee of the Company, were itself a party to this Agreement.

          Section 10.05 Limitations on Rights of Others. The
provisions of this Agreement are solely for the benefit of the Company (and
any assignee of the Company pursuant to Section 10.04), the Servicer, the
Issuer, the Owner Trustee, the Certificateholders, the Indenture Trustee
and the Noteholders, and nothing in this Agreement, whether express or
implied, shall be construed to give to any other Person any legal or
equitable right, remedy or claim in the Owner Trust Estate or under or in
respect of this Agreement or any covenants, conditions or provisions
contained herein.

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

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

          Section 10.08 Headings. The headings of the various
Articles and Sections herein are for convenience of reference only and
shall not define or limit any of the terms or provisions hereof.

          Section 10.09 Governing Law. This Agreement shall be
construed in accordance with the laws of the State of New York, without
reference to its conflict of law provisions, and the obligations, rights
and remedies of the parties hereunder shall be determined in accordance
with such laws.

          Section 10.10 Assignment by Issuer. The Company hereby
acknowledges and consents to any mortgage, pledge, assignment and grant of
a security interest by the Issuer to the Indenture Trustee pursuant to the
Indenture for the benefit of the Noteholders of all right, title and
interest of the Issuer in, to and under the Receivables and/or the
assignment of any or all of the Issuer’s rights and obligations hereunder
to the Indenture Trustee.

          Section 10.11 Nonpetition Covenant. Notwithstanding any
prior termination of this Agreement, the Servicer shall not, prior to the
date which is one year and one day after the termination of this Agreement
with respect to the Issuer or the Company, acquiesce, petition or otherwise
invoke or cause the Issuer or the Company (or any assignee of the Company
pursuant to Section 10.04) to invoke the process of any court or government
authority for the purpose of commencing or sustaining a case against the
Issuer or the Company (or any assignee of the Company pursuant to Section
10.04) under any federal or state bankruptcy, insolvency or similar law, or
appointing a receiver, liquidator, assignee, trustee, custodian,
sequestrator or other similar official of the Issuer or the Company (or any
assignee of the Company pursuant to Section 10.04) or any substantial part
of its property, or ordering the winding up or liquidation of the affairs
of the Issuer or the Company (or any assignee of the Company pursuant to
Section 10.04).

          Section 10.12 Limitation of Liability of Owner Trustee
and Indenture Trustee. (a) Notwithstanding anything contained herein to the
contrary, this Agreement has been countersigned by                      not
in its individual capacity but solely in its capacity as Owner Trustee of
the Issuer and in no event shall                      in its individual capacity
or, except as expressly provided in the Trust Agreement, as beneficial
owner of the Issuer have any liability for the representations, warranties,
covenants, agreements or other obligations of the Issuer hereunder or in
any of the certificates, notices or agreements delivered pursuant hereto,
as to all of which recourse shall be had solely to the assets of the
Issuer. For all purposes of this Agreement, in the performance of its

 

 

duties or obligations hereunder or in the performance of any duties or
obligations of the Issuer hereunder, the Owner Trustee shall be subject to,
and entitled to the benefits of, the terms and provisions of Articles VI,
VII and VIII of the Trust Agreement.

               (b) Notwithstanding anything contained herein to
the contrary, this Agreement has been accepted by The Bank of New York, not
in its individual capacity but solely as Indenture Trustee and in no event
shall The Bank of New York have any liability for the representations,
warranties, covenants, agreements or other obligations of the Issuer
hereunder or in any of the certificates, notices or agreements delivered
pursuant hereto, as to all of which recourse shall be had solely to the
assets of the Issuer.

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

	 	 	 	 	 	 	 	 	 
	 	 	[ ] VEHICLE RECEIVABLES TRUST 200 [ ] — [ ]
	 	 	By:	 	                    , not in its individual	 	 
	 	 	 	 	capacity but solely as Owner Trustee	 	 
	 	 	 	 	on behalf of the Trust	 	 
	 

	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 

Name:
	 	 
	 

	 	 	 	 	 	Title:	 	 
	 	 	[Goldman Sachs Asset Backed Securities Corp.],
	 	 	    as Company
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	Name:	 	 
	 	 	 	 	Title:	 	 
	 	 	                                                                                , as Servicer
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	Name:	 	 
	 	 	 	 	Title:	 	 

Acknowledged and accepted as

of the day and year first above

written:

 

not in its individual capacity

but solely as Indenture Trustee

					
	By:
	 	 	 	 
	 

	 	 

Name:
	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	 
	 	 	 
	as Seller	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Name:
	 	 
	 

	 	Title:	 	 

 

 

	 	 	 
	 
	 	SCHEDULE I
	 	 	 
	Schedule of Receivables	 	 
	[To be Delivered to the Trust at Closing]	 	 
	 
	 	SCHEDULE II
	Location of Receivable Files	 	 
	[To be supplied]	 	 
	 
	 	EXHIBIT A
	[To be supplied]	 	 
	 
	 	EXHIBIT B
	[To be supplied]	 	 

 

 

APPENDIX A

REGULATION AB REPRESENTATIONS, WARRANTIES AND COVENANTS

PART I

DEFINED TERMS

          Section 1.01. As used in this Appendix A, the following terms shall have the following
meanings (such meanings to be equally applicable to both the singular and plural forms of the terms
defined); unless otherwise defined herein, terms used in this Appendix A that are defined in the
Agreement to which this Appendix A is attached shall have the same meanings herein as in the
Agreement:

          “Commission”: The United States Securities and Exchange Commission.

          “Regulation AB”: Subpart 229.1100 – Asset Backed Securities (Regulation AB), 17
C.F.R. §§229.1100-229.1123, as such may be amended from time to time, and subject to such
clarification and interpretation as have been provided by the Commission in the adopting release
(Asset-Backed Securities, Securities Act Release No. 33-8518, 70 Fed. Reg. 1,506, 1,531 (Jan. 7,
2005)) or by the staff of the Commission, or as may be provided by the Commission or its staff from
time to time.
“Securities Act”: The Securities Act of 1933, as amended.

PART II

COMPLIANCE WITH REGULATION AB

          Section 2.01. Intent of the Parties; Reasonableness.
Each of the Issuer, the Company, the Sellers, the Servicer and the Indenture Trustee acknowledges
and agrees that the purpose of Part II of this Appendix A is to facilitate compliance by the
Issuer, the Company, the Sellers, the Servicer and the Indenture Trustee with the provisions of
Regulation AB and the related rules and regulations of the Commission.
Neither the Issuer nor the Sellers shall exercise its right to request delivery of information,
reports or other performance under these provisions for purposes other than compliance with
Regulation AB. Each of the Issuer, the Sellers and the Servicer acknowledges that interpretations
of the requirements of Regulation AB may change over time, whether due to interpretive guidance
provided by the Commission or its staff, consensus among participants in the asset-backed
securities markets, advice of counsel, or otherwise. Each of the Issuer, the Company, the Sellers,
the Servicer and the Indenture Trustee hereby agrees to reasonably comply with all reasonable
requests made by any of the other parties hereto (including any of its assignees or designees), as
the case may be, in good faith for delivery of such information or reports, including, without
limitation, any Servicer compliance statements and reports (solely with respect to the Servicer),
and assessments of compliance and attestation, as may be required under the then-current
interpretations of Regulation AB. The servicing criteria to be addressed in the Indenture
Trustee’s assessment of compliance and attestation shall be set forth on Schedule I attached hereto
and such assessments of compliance and attestations shall be provided by March 15th and
shall only be required for years in which a 10-K is required to be filed.

	 	 	 	 	 
	 
	 	Appendix A-1
	 	(2006-Sale and Servicing Agreement)

 

 

SCHEDULE I

Servicing Criteria To Be Addressed In Assessment Of Compliance

The assessment of compliance to be delivered by the Indenture Trustee, shall address, at a minimum,
the criteria identified as below as “Applicable Servicing Criteria”:

	 	 	 
	Reference

	 	Criteria
	 
	 	 
	 

	 	Cash Collection and Administration
	 
	 	 
	1122(d)(2)(ii)

	 	Disbursements made via wire transfer on behalf of an obligor or to an investor
are made only by authorized personnel.
	 
	 	 
	 

	 	Investor Remittances and Reporting
	 
	 	 
	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.
	 
	 	 
	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.
	 
	 	 
	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.<PAGE>

                                                                     Exhibit 4.1

                                                               EXECUTION VERSION

                     MERRILL LYNCH MORTGAGE INVESTORS, INC.,
                                    Depositor

                             WELLS FARGO BANK, N.A.
                  Master Servicer and Securities Administrator

                                       and

                      HSBC BANK USA, NATIONAL ASSOCIATION,
                                     Trustee

                         POOLING AND SERVICING AGREEMENT

                             Dated as of May 1, 2006

                                   ----------

             Mortgage Pass-Through Certificates, MLMI Series 2006-A3

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                            Page
                                                                            ----
<S>                                                                         <C>
ARTICLE I DEFINITIONS....................................................      7
   Section 1.02  Accounting..............................................     51

ARTICLE II CONVEYANCE OF MORTGAGE LOANS; ORIGINAL ISSUANCE OF
           CERTIFICATES..................................................     52
   Section 2.01  Conveyance of Mortgage Loans to Trustee.................     52
   Section 2.02  Acceptance of Mortgage Loans by Trustee.................     55
   Section 2.03  Assignment of Interest in the Mortgage Loan Purchase
                 Agreement...............................................     58
   Section 2.04  Substitution of Mortgage Loans..........................     59
   Section 2.05  Issuance of Certificates................................     61
   Section 2.06  Representations and Warranties Concerning the
                 Depositor...............................................     61
   Section 2.07  Representations and Warranties Concerning the Master
                 Servicer and Securities Administrator...................     62

ARTICLE III ADMINISTRATION AND SERVICING OF MORTGAGE LOANS...............     64
   Section 3.01  Master Servicer.........................................     64
   Section 3.02  REMIC-Related Covenants.................................     65
   Section 3.03  Monitoring of Servicers.................................     65
   Section 3.04  Fidelity Bond...........................................     66
   Section 3.05  Power to Act; Procedures................................     66
   Section 3.06  Due-on-Sale Clauses; Assumption Agreements..............     67
   Section 3.07  Release of Mortgage Files...............................     67
   Section 3.08  Documents, Records and Funds in Possession of Master
                 Servicer To Be Held for Trustee.........................     68
   Section 3.09  Standard Hazard Insurance and Flood Insurance Policies..     69
   Section 3.10  Presentment of Claims and Collection of Proceeds........     69
   Section 3.11  Maintenance of the Primary Mortgage Insurance Policies..     70
   Section 3.12  Trustee to Retain Possession of Certain Insurance
                 Policies and Documents..................................     70
   Section 3.13  Realization Upon Defaulted Mortgage Loans...............     71
   Section 3.14  Compensation for the Master Servicer....................     71
   Section 3.15  REO Property............................................     71
   Section 3.16  Annual Statement as to Compliance.......................     72
   Section 3.17  Reports on Assessment of Compliance and Attestation.....     73
   Section 3.18  Periodic Filings........................................     75
   Section 3.19  Compliance with Regulation AB...........................     82

ARTICLE IV ACCOUNTS......................................................     83
   Section 4.01  Protected Accounts......................................     83
   Section 4.02  Master Servicer Collection Account......................     84
</TABLE>

<PAGE>

<TABLE>
<S>                                                                         <C>
   Section 4.03  Permitted Withdrawals and Transfers from the Master
                 Servicer Collection Account.............................     85
   Section 4.04  Distribution Account....................................     86
   Section 4.05  Permitted Withdrawals and Transfers from the
                 Distribution Account....................................     86
   Section 4.06  Reserve Account.........................................     88

ARTICLE V CERTIFICATES...................................................     90
   Section 5.01  The Certificates........................................     90
   Section 5.02  Certificate Register; Registration of Transfer and
                 Exchange of Certificates................................     90
   Section 5.03  Mutilated, Destroyed, Lost or Stolen Certificates.......     94
   Section 5.04  Persons Deemed Owners...................................     95
   Section 5.05  Access to List of Certificateholders' Names and
                 Addresses...............................................     95
   Section 5.06  Book-Entry Certificates.................................     95
   Section 5.07  Notices to Depository...................................     96
   Section 5.08  Definitive Certificates.................................     96
   Section 5.09  Maintenance of Office or Agency.........................     97

ARTICLE VI PAYMENTS TO CERTIFICATEHOLDERS................................     98
   Section 6.01  Distributions on the Certificates.......................     98
   Section 6.02  Allocation of Losses....................................    103
   Section 6.03  Payments................................................    104
   Section 6.04  Statements to Certificateholders........................    104
   Section 6.05  Monthly Advances........................................    107
   Section 6.06  Compensating Interest Payments..........................    107

ARTICLE VII THE MASTER SERVICER AND THE DEPOSITOR........................    108
   Section 7.01  Liabilities of the Master Servicer......................    108
   Section 7.02  Merger or Consolidation of the Master Servicer..........    108
   Section 7.03  Indemnification from the Master Servicer and the
                 Depositor...............................................    108
   Section 7.04  Limitations on Liability of the Master Servicer and
                 Others..................................................    109
   Section 7.05  Master Servicer Not to Resign...........................    110
   Section 7.06  Successor Master Servicer...............................    110
   Section 7.07  Sale and Assignment of Master Servicing.................    110

ARTICLE VIII DEFAULT.....................................................    112
   Section 8.01  Events of Default.......................................    112
   Section 8.02  Trustee to Act; Appointment of Successor................    113
   Section 8.03  Notification to Certificateholders......................    114
   Section 8.04  Waiver of Defaults......................................    114
   Section 8.05  List of Certificateholders..............................    115

ARTICLE IX CONCERNING THE TRUSTEE AND THE SECURITIES ADMINISTRATOR.......    116
</TABLE>

                                       iii

<PAGE>

<TABLE>
<S>                                                                         <C>
   Section 9.01  Duties of Trustee.......................................    116
   Section 9.02  Certain Matters Affecting the Trustee and the Securities
                 Administrator...........................................    118
   Section 9.03  Trustee and Securities Administrator Not Liable for
                 Certificates or Mortgage Loans..........................    120
   Section 9.04  Trustee and Securities Administrator May Own
                 Certificates............................................    120
   Section 9.05  Trustee's and Securities Administrator's Fees and
                 Expenses................................................    120
   Section 9.06  Eligibility Requirements for Trustee and Securities
                 Administrator...........................................    121
   Section 9.07  Insurance...............................................    122
   Section 9.08  Resignation and Removal of the Trustee and Securities
                 Administrator...........................................    122
   Section 9.09  Successor Trustee and Successor Securities
                 Administrator...........................................    123
   Section 9.10  Merger or Consolidation of Trustee or Securities
                 Administrator...........................................    123
   Section 9.11  Appointment of Co-Trustee or Separate Trustee...........    124
   Section 9.12  Federal Information Returns and Reports to
                 Certificateholders; REMIC Administration................    125

ARTICLE X TERMINATION....................................................    130
   Section 10.01 Termination upon Liquidation or Repurchase of all
                 Mortgage Loans..........................................    130
   Section 10.02 Final Distribution on the Certificates..................    131
   Section 10.03 Additional Termination Requirements.....................    132

ARTICLE XI MISCELLANEOUS PROVISIONS......................................    134
   Section 11.01 Intent of Parties.......................................    134
   Section 11.02 Amendment...............................................    134
   Section 11.03 Recordation of Agreement................................    136
   Section 11.04 Limitation on Rights of Certificateholders..............    136
   Section 11.05 Acts of Certificateholders..............................    136
   Section 11.06 Governing Law...........................................    138
   Section 11.07 Notices.................................................    138
   Section 11.08 Severability of Provisions..............................    139
   Section 11.09 Successors and Assigns..................................    139
   Section 11.10 Article and Section Headings............................    139
   Section 11.11 Counterparts............................................    139
   Section 11.12 Notice to Rating Agencies...............................    139

ARTICLE XII REMIC ADMINISTRATION.........................................    140
   Section 12.01 REMIC Administration....................................    140
   Section 12.02 Prohibited Transactions and Activities..................    140
   Section 12.03 Indemnification with Respect to Prohibited Transactions
                 or Loss of REMIC Status.................................    140
   Section 12.04 REO Property............................................    141
</TABLE>

                                       iv

<PAGE>

EXHIBITS

Exhibit A-1        - Form of Class A and Class M Certificates
Exhibit A-2        - Form of Class B Certificates
Exhibit A-3        - Form of Class A-R Certificate
Exhibit B          - Mortgage Loan Schedule
Exhibit C          - [Reserved]
Exhibit D          - Request for Release of Documents
Exhibit E-1        - Form of Transferee's Letter and Affidavit
Exhibit E-2        - Form of Transferor Certificate
Exhibit F-1        - Form of Transferor Representation Letter
Exhibit F-2        - Form of Investor Representation Letter
Exhibit F-3        - Form of Rule 144A Letter
Exhibit G          - Form of Custodial Agreement
Exhibit H          - [Reserved]
Exhibit I-1 to I-3 - Assignment Agreements
Exhibit J          - Mortgage Loan Purchase Agreement
Exhibit K          - Servicing Criteria To Be Addressed in Assessment of
                     Compliance
Exhibit L          - Form of Sarbanes-Oxley Certification
Exhibit M          - Form of Back-up Sarbanes-Oxley Certification
Exhibit N          - [Reserved]
Exhibit O          - Additional Disclosure Notification
Exhibit P          - Form of Item 1123 Certification of Servicer
Exhibit Q-1        - Additional Form 10-D Disclosure
Exhibit Q-2        - Additional Form 10-K Disclosure
Exhibit Q-3        - Form 8-K Disclosure Information

                                        v
<PAGE>

                         POOLING AND SERVICING AGREEMENT

     This Pooling and Servicing Agreement is dated as of May 1, 2006 (the
"Agreement"), among MERRILL LYNCH MORTGAGE INVESTORS, INC., as depositor (the
"Depositor"), WELLS FARGO BANK, N.A., as master servicer (in such capacity, the
"Master Servicer") and as securities administrator (in such capacity, the
"Securities Administrator") and HSBC BANK USA, NATIONAL ASSOCIATION, as trustee
(the "Trustee").

                              PRELIMINARY STATEMENT

     The Depositor has acquired the Mortgage Loans from the Seller and at the
Closing Date is the owner of the Mortgage Loans and the other property being
conveyed by the Depositor to the Trustee hereunder for inclusion in the Trust
Fund. On the Closing Date, the Depositor will acquire the Certificates from the
Securities Administrator as consideration for the Depositor's transfer to the
Trust Fund of the Mortgage Loans and the other property constituting the Trust
Fund. The Depositor has duly authorized the execution and delivery of this
Agreement to provide for the conveyance to the Trustee of the Mortgage Loans and
the other property constituting the Trust Fund. All covenants and agreements
made by the Seller in the Mortgage Loan Purchase Agreement and in this Agreement
and all covenants and agreements made by the Depositor, the Trustee, the
Securities Administrator and the Master Servicer herein with respect to the
Mortgage Loans and the other property constituting the Trust Fund are for the
benefit of the Holders from time to time of the Certificates. The Depositor, the
Trustee, the Securities Administrator and the Master Servicer are entering into
this Agreement, and the Trustee is accepting the Trust Fund created hereby, for
good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged.

     As provided herein, the Securities Administrator shall elect that the Trust
Fund be treated for federal income tax purposes as comprising two real estate
mortgage investment conduits (each a "REMIC" or, in the alternative, "REMIC 1"
and the "Upper Tier REMIC," respectively) in a tiered structure. The
Certificates, other than the Class A-R Certificate, shall represent ownership of
regular interests in the Upper Tier REMIC. The Class A-R Certificate represents
the sole class of residual interest in each of REMIC 1 and the Upper Tier REMIC.

     The Upper Tier REMIC shall hold as its assets the several classes of
uncertificated REMIC 1 Regular Interests. REMIC 1 shall hold as its assets the
property of the Trust Fund other than the REMIC 1 Interests.

     Each Upper Tier REMIC Regular Interest is hereby designated as a regular
interest in the Upper Tier REMIC for purposes of the REMIC Provisions. Each
REMIC 1 Regular Interest is hereby designated as a regular interest in REMIC 1
for purposes of the REMIC Provisions.

     The Class LT1-R Interest is hereby designated as the sole class of residual
interest in REMIC 1 for purposes of the REMIC Provisions. The Class A-R
Certificate, other than the portion thereof representing the right to receive
payments in respect of the Class LT1-R Interest, is hereby designated as the
sole class of residual interest in the Upper Tier REMIC for purposes of the
REMIC provisions. The Class A-R Certificate will also represent the Class LT1-R
Interest.

                                      -1-

<PAGE>

THE REMIC 1 INTERESTS

     The following table sets forth (or describes) the class designation,
interest rate, initial principal balance, and related group of Mortgage Loans
for each class of REMIC 1 Interests:

<TABLE>
<CAPTION>
Class             Principal       Interest        Related Loan Groups
Designation        Balance          Rate             or Loan Group
-----------   -----------------   --------   ----------------------------
<S>           <C>                 <C>        <C>
LT11A         $     39,473.6116      (2)     Loan Group I
LT11B         $    751,734.6116      (3)     Loan Group I
LT12A         $     55,250.4036      (2)     Loan Group II
LT12B         $  1,052,250.4036      (4)     Loan Group II
LT13A         $    107,476.6012      (2)     Loan Group III
LT13B         $  2,046,996.6012      (5)     Loan Group III
LT14A         $     32,692.1571      (2)     Loan Group IV
LT14B         $    622,602.1571      (6)     Loan Group IV
LT15A         $     24,235.4116      (2)     Loan Group V
LT15B         $    461,555.4116      (7)     Loan Group V
LT16A         $     34,301.9540      (2)     Loan Group VI
LT16B         $    653,361.9540      (8)     Loan Group VI
LT1Z          $552,968,182.6318      (2)     Loan Group I, Loan Group II,
                                             Loan Group III, Loan Group IV,
                                             Loan Group V and Loan Group VI
LT1-R                        (1)     (1)     N/A
</TABLE>

----------
(1)  The Class LT1-R Interest represents the sole class of residual interest in
     REMIC 1 and has neither a principal amount nor an interest rate. The Class
     LT1-R Interest shall be represented by the Class A-R Certificate.

(2)  The Class LT11A Interest, the Class LT12A Interest, the Class LT13A
     Interest, the Class LT14A Interest, the Class LT15A Interest, the Class
     LT16A Interest and the Class LT1Z Interest shall have an interest rate for
     each Distribution Date (and the related Interest Accrual Period) equal to
     the Net WAC.

(3)  The Class LT11B Interest shall have an interest rate for any Distribution
     Date (and the related Interest Accrual Period) equal to the Loan Group I
     Net WAC.

(4)  The Class LT12B Interest shall have an interest rate for any Distribution
     Date (and the related Interest Accrual Period) equal to the Loan Group II
     Net WAC.

(5)  The Class LT13B Interest shall have an interest rate for any Distribution
     Date (and the related Interest Accrual Period) equal to the Loan Group III
     Net WAC.

(6)  The Class LT14B Interest shall have an interest rate for any Distribution
     Date (and the related Interest Accrual Period) equal to the Loan Group IV
     Net WAC.

(7)  The Class LT15B Interest shall have an interest rate for any Distribution
     Date (and the related Interest Accrual Period) equal to the Loan Group V
     Net WAC.

(8)  The Class LT16B Interest shall have an interest rate for any Distribution
     Date (and the related Interest Accrual Period) equal to the Loan Group VI
     Net WAC.

     On each Distribution Date, the Securities Administrator shall first pay or
charge as an expense of REMIC 1 all expenses of the Issuing Entity for such
Distribution Date.

                                      -2-

<PAGE>

     Principal distributions shall be deemed to be made on the REMIC 1 Interests
first, so as to keep the uncertificated principal balance of each REMIC 1
Interest ending with the designation "A" equal to 1% of the excess of (x) the
aggregate Stated Principal Balance of the Mortgage Loans in the related Loan
Group over (y) the aggregate class principal amounts of the Certificates in the
Certificate Group related to such Loan Group (except that if 1% of any such
excess is greater than the principal amount of the corresponding REMIC 1
Interest ending with the designation "A", the least amount of principal shall be
distributed to such REMIC 1 Interests such that the REMIC 1 Subordinate Balance
Ratio is maintained); second, to each REMIC 1 Interest ending with the
designation "B" so as to keep the uncertificated principal balance of each such
REMIC 1 Interest equal to 1% of the aggregate Stated Principal Balance of the
Mortgage Loans in the related Loan Group and finally, all remaining principal
amounts shall be distributed in respect of the Class LT1Z Interest. Realized
Losses with respect to principal shall be allocated among the REMIC 1 Interests
first, so as to keep the uncertificated principal balance of each REMIC 1
Interest ending with the designation "A" equal to 1% of the excess of (x) the
aggregate Stated Principal Balance of the Mortgage Loans in the related Loan
Group over (y) the aggregate class principal amounts of the Certificates in the
Certificate Group related to such Loan Group (except that if 1% of any such
excess is greater than the principal amount of the corresponding REMIC 1
Interest ending with the designation "A", the least amount of losses shall be
allocated to such REMIC 1 Interests such that the REMIC 1 Subordinate Balance
Ratio is maintained); second, to each REMIC 1 Interest ending with the
designation "B" so as to keep the uncertificated principal balance of each such
REMIC 1 Interest equal to 1% of the aggregate Principal Balance of the Mortgage
Loans in the related Loan Group and finally, all remaining Realized Losses with
respect to principal shall be distributed in respect of the Class LT1Z Interest.

     If on any Distribution Date the Class Certificate Balance of any Class of
Certificates is increased due to Subsequent Recoveries pursuant to the
definition of "Class Certificate Balance", then there shall be an equivalent
aggregate increase in the principal amounts of the REMIC 1 Regular Interests,
with such increase allocated (before the making of distributions and the
allocation of losses on the REMIC 1 Regular Interests on such Distribution Date)
among the REMIC 1 Regular Interests as follows: (i) first, to each REMIC 1
Interest ending with the designation "B" so as to keep the uncertificated
principal balance of each such REMIC 1 Interest equal to 1% of the aggregate
Stated Principal Balance of the Mortgage Loans in the related Loan Group, (ii)
second, to each REMIC 1 Regular Interest ending with the designation "A", so
that the uncertificated principal balance of each REMIC 1 Regular Interest
ending with the designation "A" is as close as possible to (but does not exceed)
1% of the excess of (x) the aggregate Stated Principal Balance of the Mortgage
Loans in related Loan Group over (y) the aggregate class principal balance of
the Certificates in the Certificate Group related to such Loan Group; provided,
however, that (a) the REMIC 1 Subordinate Balance Ratio is maintained and (b)
amounts allocated to any REMIC 1 Regular Interest pursuant to this clause (ii)
shall not exceed the amount of any previous realized losses allocated to such
REMIC 1 Regular Interest not previously offset by distributions or increases in
the principal amount of such REMIC 1 Regular Interest and (iii) finally, all
remaining amounts to the Class LT1Z Interest.

     All computations with respect to the REMIC 1 Interests shall be computed to
eight decimal places.

                                      -3-

<PAGE>

THE CERTIFICATES

     The following table sets forth (or describes) the Class designation,
Pass-Through Rate, initial Class Certificate Balance or initial notional amount,
and minimum denomination for each Class of Certificates comprising interests in
the Trust Fund created hereunder.

<TABLE>
<CAPTION>
                Related Class or                     Initial        Minimum
                   Classes of                         Class      Denominations
    Class       interests in the   Pass-Through    Certificate   or Percentage
 Designation    Upper Tier REMIC       Rate          Balance        Interest
-------------   ----------------   ------------   ------------   -------------
<S>             <C>                <C>            <C>            <C>
Class I-A         Class I-A             (1)       $ 71,226,000    $25,000.00
Class II-A-1      Class II-A-1          (2)       $ 89,730,000    $25,000.00
Class II-A-2      Class II-A-2          (2)       $  9,970,000    $25,000.00
Class III-A-1     Class III-A-1         (3)       $174,557,000    $25,000.00
Class III-A-2     Class III-A-2         (3)       $ 19,395,000    $25,000.00
Class IV-A-1      Class IV-A-1          (4)       $ 53,092,000    $25,000.00
Class IV-A-2      Class IV-A-2          (4)       $  5,899,000    $25,000.00
Class V-A-1       Class V-A-1           (5)       $ 39,359,000    $25,000.00
Class V-A-2       Class V-A-2           (5)       $  4,373,000    $25,000.00
Class VI-A-1      Class VI-A-1          (6)       $ 55,715,000    $25,000.00
Class VI-A-2      Class VI-A-2          (6)       $  6,191,000    $25,000.00
Class A-R         Class A-R             (7)       $        100           100%
Class M-1         Class M-1             (8)       $ 10,901,000    $25,000.00
Class M-2         Class M-2             (8)       $  6,706,000    $25,000.00
Class M-3         Class M-3             (8)       $  4,470,000    $25,000.00
Class B-1         Class B-1             (8)       $  3,353,000    $25,000.00
Class B-2         Class B-2             (8)       $  2,235,000    $25,000.00
Class B-3         Class B-3             (8)       $  1,678,013    $25,000.00
</TABLE>

(1)  The Pass-Through Rate with respect to any Distribution Date (and the
     related Interest Accrual Period) for the Class I-A Certificates will be the
     Loan Group I Net WAC.

(2)  The Pass-Through Rate with respect to any Distribution Date (and the
     related Interest Accrual Period) for the Class II-A-1 and Class II-A-2
     Certificates will be the Loan Group II Net WAC.

(3)  The Pass-Through Rate with respect to any Distribution Date (and the
     related Interest Accrual Period) for the Class III-A-1 and Class III-A-2
     Certificates will be the Loan Group III Net WAC.

(4)  The Pass-Through Rate with respect to any Distribution Date (and the
     related Interest Accrual Period) for the Class IV-A-1 and Class IV-A-2
     Certificates will be the Loan Group IV Net WAC.

(5)  The Pass-Through Rate with respect to any Distribution Date (and the
     related Interest Accrual Period) for the Class V-A1 and Class V-A-2
     Certificates will be the Loan Group V Net WAC.

(6)  The Pass-Through Rate with respect to any Distribution Date (and the
     related Interest Accrual Period) for the Class VI-A1 and Class VI-A-2
     Certificates will be the Loan Group VI Net WAC.

(7)  The Pass-Through Rate with respect to any Distribution Date (and the
     related Interest Accrual Period) for the Class A-R Certificates will be the
     Loan Group I Net WAC.

(8)  The Pass-Through Rates with respect to any Distribution Date (and the
     related Interest Accrual Period) for the Class M-1, Class M-2, Class M-3,
     Class B-1, Class B-2 and Class B-3 Certificates will be equal to the
     Subordinate Net WAC.

                                      -4-

<PAGE>

     As of the Cut-off Date, the Mortgage Loans had an aggregate Stated
Principal Balance of $558,850,113.91.

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

                                      -5-

<PAGE>

                                    ARTICLE I
                                   DEFINITIONS

     Whenever used in this Agreement, the following words and phrases, unless
otherwise expressly provided or unless the context otherwise requires, shall
have the meanings specified in this Article.

     Accepted Master Servicing Practices: With respect to any Mortgage Loan, as
applicable, either (x) those customary mortgage 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 Trustee
or the Master Servicer (except in its capacity as successor to a Servicer), or
(y) as provided in the applicable Servicing Agreement, to the extent applicable
to any Servicer, but in no event below the standard set forth in clause (x).

     Account: The Master Servicer Collection Account, Distribution Account and
any Protected Account as the context may require.

     Accountant's Attestation: As defined in Section 3.17.

     Accrued Certificate Interest: With respect to each Class of Certificates,
an amount equal to the interest accrued during the related Interest Accrual
Period on the Class Certificate Balance thereof at the then-applicable
Pass-Through Rate. Accrued Certificate Interest on any Class of Certificates
will be reduced by the amount of (i) Prepayment Interest Shortfalls (to the
extent not offset by the related Servicer or Master Servicer with a payment of
Compensating Interest as provided in Section 6.06), (ii) the interest portion of
Realized Losses allocated to such Class of Certificates pursuant to Section 6.02
and (iii) any other interest shortfalls not covered by the subordination
provided by the Class M Certificates and Class B Certificates, including
shortfalls as a result of the Relief Act or similar legislation or regulations,
with all such reductions allocated among all of the Certificates in proportion
to their respective amounts of Accrued Certificate Interest payable on such
Distribution Date which would have resulted absent such reductions.

     Additional Disclosure Notification: As defined in Section 3.18(b).

     Additional Form 10-D Disclosure: As defined in Section 3.18(e).

     Additional Form 10-K Disclosure: As defined in Section 3.18(h).

     Adverse REMIC Event: As defined in Section 9.12(g).

     Affiliate: As to any Person, any other Person controlling, controlled by or
under common control with such Person. "Control" means the power to direct the
management and policies of a Person, directly or indirectly, whether through
ownership of voting securities, by contract or otherwise. "Controlled" and
"Controlling" have meanings correlative to the foregoing. The Master Servicer
may conclusively presume that a Person is not an Affiliate of another Person
unless a Responsible Officer of the Master Servicer has actual knowledge to the
contrary.

                                      -6-

<PAGE>

     Agreement: This Pooling and Servicing Agreement, including the exhibits
hereto, and all amendments hereof and supplements hereto.

     Applicable Credit Rating: For any long-term deposit or security, a credit
rating of AAA in the case of S&P or Aaa in the case of Moody's. For any
short-term deposit or security, a rating of A-l+ in the case of S&P or P-1 in
the case of Moody's.

     Applicable Credit Support Percentage: With respect to any Class of
Subordinate Certificates, the sum of the related Class Subordination Percentages
of such Class and all Classes of Subordinate Certificates which have a lower
relative priority of payment than such Class.

     Appraised Value: For any Mortgaged Property related to a Mortgage Loan, the
amount set forth as the appraised value of such Mortgaged Property in an
appraisal made for the mortgage originator in connection with its origination of
the related Mortgage Loan.

     Assessment of Compliance: As defined in Section 3.17.

     Assignment: An assignment of the Mortgage, notice of transfer or equivalent
instrument, in recordable form, sufficient under the laws of the jurisdiction
wherein the related Mortgaged Property is located to reflect of record the sale
of the Mortgage Loan to the Trustee for the benefit of Certificateholders, 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 and accompanied by an
Opinion of Counsel to that effect.

     Assignment Agreements: The National City Assignment Agreement, Countrywide
Assignment Agreement and the Wells Fargo Assignment Agreement, which are
attached hereto as Exhibits I-1, I-2 and I-3, respectively.

     Assumed Final Distribution Date: For all Classes of Certificates, May 25,
2036, or if such day is not a Business Day, the next succeeding Business Day.

     Auction: The one-time auction conducted by the Securities Administrator, as
described in Section 10.01(b) hereof.

     Auction date: The date on which the Auction occurs.

     Available Funds: For any Distribution Date, the sum of the Group I
Available Funds, the Group II Available Funds, the Group III Available Funds,
the Group IV Available Funds, the Group V Available Funds and the Group VI
Available Funds.

     Average Loss Severity: With respect to any period and each Loan Group, the
fraction obtained by dividing (x) the aggregate amount of Realized Losses for
the related Mortgage Loans for such period by (y) the number of related Mortgage
Loans which had Realized Losses for such period.

     Back-Up Certification: As defined in Section 3.18(k).

                                      -7-

<PAGE>

     Bankruptcy Code: The United States Bankruptcy Code, as amended as codified
in 11 U.S.C. Sections 101-1330.

     Book-Entry Certificates: Any of the Certificates that shall be registered
in the name of the Depository or its nominee, the ownership of which is
reflected on the books of the Depository or on the books of a Person maintaining
an account with the Depository (directly, as a "Depository Participant", or
indirectly, as an indirect participant in accordance with the rules of the
Depository and as described in Section 5.02 hereof). On the Closing Date, the
Certificates (other than the Class A-R Certificate and the Private Certificates)
shall be Book-Entry Certificates.

     Business Day: Any day other than (i) a Saturday or a Sunday, or (ii) a day
on which the New York Stock Exchange or Federal Reserve is closed or on which
banking institutions in the jurisdiction in which the Trustee, the Master
Servicer, any Servicer or the Securities Administrator are authorized or
obligated by law or executive order to be closed.

     Certificate: Any mortgage pass-through certificate evidencing a beneficial
ownership interest in the Trust Fund signed and countersigned by the Securities
Administrator.

     Certificate Group: Each of the Group I Certificates, the Group II
Certificates, the Group III Certificates, the Group IV Certificates, the Group V
Certificates and the Group VI Certificates.

     Certificateholder or Holder: The Person in whose name a Regular Certificate
is registered in the Certificate Register, except that a Disqualified
Organization or non-U.S. Person shall not be a Holder of the Class A-R
Certificate for any purpose hereof.

     Certificate Owner: With respect to each Book-Entry Certificate, any
beneficial owner thereof.

     Certificate Register: The register maintained pursuant to Section 5.02
hereof.

     Certification Parties: As defined in Section 3.18(k).

     Certifying Person: As defined in Section 3.18(k).

     Class: Collectively, Certificates which have the same priority of payment
and bear the same class designation and the form of which is identical except
for variation in the Percentage Interest evidenced thereby.

     Class A Certificate: Any of the Class I-A, Class II-A-1, Class II-A-2,
Class III-A-1, Class III-A-2, Class IV-A-1, Class IV-A-2, Class V-A-1, Class
V-A-2, Class VI-A-1, Class VI-A-2 or Class A-R Certificates as designated on the
face thereof substantially in the form annexed (other than the Class A-R
Certificate) hereto as Exhibit A-1, executed by the Securities Administrator and
authenticated and delivered by the Securities Administrator, representing the
right to distributions as set forth herein and therein.

                                      -8-

<PAGE>

     Class A-R Certificate: The Class A-R Certificate executed, authenticated
and delivered by the Securities Administrator substantially in the form annexed
hereto as Exhibit A-3 and evidencing the ownership of the Class LT1-R Interest
and the residual interest in the Upper Tier REMIC.

     Class A Certificateholder: Any Holder of a Class A Certificate.

     Class B Certificate: Any one of the Class B-1, Class B-2 or Class B-3
Certificates as designated on the face thereof substantially in the form annexed
hereto as Exhibit A-2, executed by the Securities Administrator and
authenticated and delivered by the Securities Administrator, representing the
right to distributions as set forth herein and therein.

     Class B Certificateholder: Any Holder of a Class B Certificate.

     Class B Percentage: The Class B-1 Percentage, Class B-2 Percentage or Class
B-3 Percentage.

     Class B-1 Percentage: With respect to any Distribution Date, the lesser of
100% and a fraction, expressed as a percentage, the numerator of which is the
aggregate Class Certificate Balance of the Class B-1 Certificates immediately
prior to such Distribution Date and the denominator of which is the aggregate
Stated Principal Balance of all of the Mortgage Loans (or related REO
Properties) immediately prior to such Distribution Date.

     Class B-2 Percentage: With respect to any Distribution Date, the lesser of
100% and a fraction, expressed as a percentage, the numerator of which is the
aggregate Class Certificate Balance of the Class B-2 Certificates immediately
prior to such Distribution Date and the denominator of which is the aggregate
Stated Principal Balance of all of the Mortgage Loans (or related REO
Properties) immediately prior to such Distribution Date.

     Class B-3 Percentage: With respect to any Distribution Date, the lesser of
100% and a fraction, expressed as a percentage, the numerator of which is the
aggregate Class Certificate Balance of the Class B-3 Certificates immediately
prior to such Distribution Date and the denominator of which is the aggregate
Stated Principal Balance of all of the Mortgage Loans (or related REO
Properties) immediately prior to such Distribution Date.

     Class Certificate Balance: With respect to any Certificate as of any date
of determination, the Class Certificate Balance of such Certificate on the
Distribution Date immediately prior to such date of determination, plus any
Subsequent Recoveries added to the Class Certificate Balance of such Certificate
pursuant to Section 6.01, and reduced by the aggregate of (a) all distributions
of principal made thereon on such immediately prior Distribution Date and (b)
without duplication of amounts described in clause (a) above, reductions in the
Class Certificate Balance thereof in connection with allocations thereto of
Realized Losses on the Mortgage Loans and Extraordinary Trust Fund Expenses on
such immediately prior Distribution Date (or, in the case of any date of
determination up to and including the initial Distribution Date, the initial
Class Certificate Balance of such Certificate, as stated on the face thereof);
provided, however, that the Class Certificate Balance of each Subordinate
Certificate of the Class of Subordinate Certificates outstanding with the
highest numerical designation at any given time shall be calculated to equal the
Percentage Interest

                                      -9-

<PAGE>

evidenced by such Certificate multiplied by the excess, if any, of (A) the then
aggregate Stated Principal Balance of the Mortgage Loans over (B) the then
aggregate Class Certificate Balance of all other Classes of Certificates then
outstanding.

     Class M Certificate: Any one of the Class M-1, Class M-2 or Class M-3
Certificates as designated on the face thereof substantially in the form annexed
hereto as Exhibit A-1, executed by the Securities Administrator and
authenticated and delivered by the Securities Administrator, representing the
right to distributions as set forth herein and therein.

     Class M Certificateholder: Any Holder of a Class M Certificate.

     Class M Percentage: The Class M-1 Percentage, Class M-2 Percentage or Class
M-3 Percentage.

     Class M-1 Percentage: With respect to any Distribution Date, the lesser of
100% and a fraction, expressed as a percentage, the numerator of which is the
aggregate Class Certificate Balance of the Class M-1 Certificates immediately
prior to such date and the denominator of which is the aggregate Stated
Principal Balance of all of the Mortgage Loans (or related REO Properties)
immediately prior to such Distribution Date.

     Class M-2 Percentage: With respect to any Distribution Date, the lesser of
100% and a fraction, expressed as a percentage, the numerator of which is the
aggregate Class Certificate Balance of the Class M-2 Certificates immediately
prior to such date and the denominator of which is the aggregate Stated
Principal Balance of all of the Mortgage Loans (or related REO Properties)
immediately prior to such Distribution Date.

     Class M-3 Percentage: With respect to any Distribution Date, the lesser of
100% and a fraction, expressed as a percentage, the numerator of which is the
aggregate Class Certificate Balance of the Class M-3 Certificates immediately
prior to such date and the denominator of which is the aggregate Stated
Principal Balance of all of the Mortgage Loans (or related REO Properties)
immediately prior to such Distribution Date.

     Class Subordination Percentage: With respect to any Distribution Date and
each Class of Subordinate Certificates, the fraction (expressed as a percentage)
the numerator of which is the Class Certificate Balance of such Class of
Subordinate Certificates immediately prior to such Distribution Date and the
denominator of which is the aggregate of the Class Certificate Balances of all
Classes of Certificates immediately prior to such Distribution Date.

     Closing Date: May 31, 2006.

     Code: The Internal Revenue Code of 1986, as amended.

     Commission: The Securities and Exchange Commission.

     Compensating Interest Payment: As defined in Section 6.06.

     Cooperative: A corporation that has been formed for the purpose of
cooperative apartment ownership.

                                      -10-

<PAGE>

     Cooperative Assets: Shares issued by Cooperatives, the related Cooperative
Lease and any other collateral securing the Cooperative Loans.

     Cooperative Lease: With respect to a Cooperative Loan, the proprietary
lease or occupancy agreement with respect to the cooperative apartment occupied
by the Mortgagor and relating to the related Cooperative Assets, which lease or
agreement confers an exclusive right to the holder of such Cooperative Assets to
occupy such apartment.

     Cooperative Loan: The indebtedness of a Mortgagor evidenced by a Mortgage
Note which is secured by Cooperative Assets and which is being sold to the
Depositor pursuant to this Agreement, the Mortgage Loans so sold being
identified in the Mortgage Loan Schedule.

     Cooperative Stock: With respect to a Cooperative Loan, the single
outstanding class of stock, partnership interest or other ownership instrument
in the related Cooperative.

     Corporate Trust Office: With respect to the Trustee, the principal
corporate trust office of the Trustee 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 HSBC Bank USA, National Association, 452 Fifth Avenue, New York, New
York 10018, Attention: Issuer Services - Merrill Lynch Mortgage Investors, Inc.,
MLMI Series 2006-A3, or at such other address as the Trustee may designate from
time to time by notice to the Certificateholders, the Depositor and the Master
Servicer and with respect to the Securities Administrator, for Certificate
transfer purposes, Wells Fargo Center, Sixth Street and Marquette Avenue,
Minneapolis, Minnesota 55479, Attn: Corporate Trust Services - MLMI 2006-A3, and
for all other purposes, 9062 Old Annapolis Road, Columbia, Maryland, 21045,
Attn: Corporate Trust Services - MLMI 2006-A3.

     Countrywide: Countrywide Home Loans Servicing LP or any successor thereto.

     Countrywide Assignment Agreement: The Assignment, Assumption and
Recognition Agreement, dated as of May 1, 2006, among MLBUSA, the Seller,
Countrywide Home Loans Servicing LP and Countrywide Home Loans, Inc., pursuant
to which the Countrywide Servicing Agreement (other than the rights to enforce
the representations and warranties with respect to the Countrywide Loans) were
assigned to the Depositor for the benefit of the Certificateholders.

     Countrywide Loans: The Mortgage Loans serviced by Countrywide pursuant to
the Countrywide Servicing Agreement.

     Countrywide Servicing Agreement: The Master Mortgage Loan Purchase and
Servicing Agreement dated as of November 1, 2004, between Countrywide Home Loans
Inc. as seller and MLBUSA as purchaser, as amended by the Regulation AB
Amendment thereto, as at any time in effect.

     Credit Support Depletion Date: The first Distribution Date on which the
Class Certificate Balances of the Subordinate Certificates are reduced to zero.

     Curtailment: Any Principal Prepayment made by a Mortgagor which is not a
Principal Prepayment in Full.

                                      -11-

<PAGE>

     Custodial Agreement: An agreement, dated as of the Closing Date among the
Depositor, the Master Servicer, the Securities Administrator, the Trustee and
the Custodian in substantially the form of Exhibit G hereto.

     Custodian: Wells Fargo Bank, N.A., including any successors in interest, or
any successor custodian appointed pursuant to the provisions hereof and of the
Custodial Agreement.

     Cut-off Date: May 1, 2006.

     Debt Service Reduction: Any reduction of the Monthly Payments which a
Mortgagor is obligated to pay with respect to a Mortgage Loan as a result of any
proceeding under the Bankruptcy Code or any other similar state law or other
proceeding.

     Defective Mortgage Loan: A Mortgage Loan replaced or to be replaced by one
or more Substitute Mortgage Loans.

     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 5.06.

     Depositor: Merrill Lynch Mortgage Investors, Inc., a Delaware corporation,
or any successor in interest.

     Depository: The Depository Trust Company, the nominee of which is Cede &
Co., or any successor thereto.

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

     Designated Depository Institution: A depository institution (commercial
bank, federal savings bank, mutual savings bank or savings and loan association)
or trust company (which may include the Trustee), the deposits of which are
fully insured by the FDIC to the extent provided by law.

     Determination Date: With respect to each Mortgage Loan, the Determination
Date as defined in the related Servicing Agreement.

     Disqualified Organization: A "disqualified organization" as defined in
Section 860 E(e)(5) of the Code.

     Distribution Account: The trust account or accounts created and maintained
pursuant to Section 4.04, which shall be denominated "Wells Fargo Bank, National
Association, as Securities Administrator for HSBC Bank USA, National
Association, as Trustee f/b/o holders of

                                      -12-

<PAGE>

Merrill Lynch Mortgage Investors, Inc., Mortgage Pass-Through Certificates, MLMI
Series 2006-A3 - Distribution Account." The Distribution Account shall be an
Eligible Account.

     Distribution Account Deposit Date: The Business Day prior to each
Distribution Date.

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

     Due Date: With respect to each Mortgage Loan, the date in each month on
which its Monthly Payment is due if such due date is the first day of a month
and otherwise is deemed to be the first day of the following month or such other
date specified in the related Servicing Agreement.

     Due Period: With respect to any Distribution Date and each Mortgage Loan,
the period commencing on the second day of the month preceding the month in
which the Distribution Date occurs and ending at the close of business on the
first day of the month in which the Distribution Date occurs.

     Eligible Account: Any of (i) a segregated account maintained with a federal
or state chartered depository institution (A) the short-term obligations of
which are rated A-1 or better by S&P and P-1 by Moody's at the time of any
deposit therein or (B) insured by the FDIC (to the limits established by such
Corporation), the uninsured deposits (as evidenced in writing by the Rating
Agencies that use of any such account as the Distribution Account will not have
an adverse effect on the then-current ratings assigned to the Classes of
Certificates then rated by the Rating Agencies) in which account are otherwise
secured such that, as evidenced by an Opinion of Counsel (obtained by the Person
requesting that the account be held pursuant to this clause (i)) delivered to
the Securities Administrator prior to the establishment of such account, the
Certificateholders will have a claim with respect to the funds in such account
and a perfected first priority security interest against any collateral (which
shall be limited to Permitted Investments, each of which shall mature not later
than the Business Day immediately preceding the Distribution Date next following
the date of investment in such collateral or the Distribution Date if such
Permitted Investment is an obligation of the institution that maintains the
Distribution Account) securing such funds that is superior to claims of any
other depositors or general creditors of the depository institution with which
such account is maintained, (ii) a segregated trust account or accounts
maintained with a federal or state chartered depository institution or trust
company with trust powers acting in its fiduciary capacity or (iii) a segregated
account or accounts of a depository institution acceptable to the Rating
Agencies (as evidenced in writing by the Rating Agencies that use of any such
account as the Distribution Account will not have an adverse effect on the
then-current ratings assigned to the Classes of the Certificates then rated by
the Rating Agencies). Eligible Accounts may bear interest.

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

     ERISA-Qualifying Underwriting: A best efforts or firm commitment
underwriting or private placement that would satisfy the requirements of
Prohibited Transaction Exemption 90-29, Exemption Application No. D-8012, 55
Fed. Reg. 21459 (1990), as amended, granted to the Underwriter by the United
States Department of Labor (or any other applicable underwriter's

                                      -13-

<PAGE>

exemption granted by the United States Department of Labor), except, in relevant
part, for the requirement that the certificates have received a rating at the
time of acquisition that is in one of the three (or four, in the case of a
"designated transaction") highest generic rating categories by at least one of
the Rating Agencies.

     ERISA Restricted Certificates: Any of the Class B-1, Class B-2 or Class B-3
Certificates, and any other Certificate, as long as the acquisition and holding
of such Certificate is not covered by and exempt under an underwriter's
exemption.

     Event of Default: An event of default described in Section 8.01.

     Excess Liquidation Proceeds: To the extent that such amount is not required
by law to be paid to the related Mortgagor, the amount, if any, by which
Liquidation Proceeds with respect to a Liquidated Mortgage Loan exceed the sum
of (i) the Outstanding Principal Balance of such Mortgage Loan and accrued but
unpaid interest at the related Mortgage Interest Rate through the last day of
the month in which the related Liquidation Date occurs, plus (ii) related
Liquidation Expenses.

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

     Extraordinary Loss: Any Realized Loss or portion thereof caused by or
resulting from:

          (i) nuclear or chemical reaction or nuclear radiation or radioactive
     or chemical contamination, all whether controlled or uncontrolled and
     whether such loss be direct or indirect, proximate or remote;

          (ii) hostile or warlike action in time of peace or war, including
     action in hindering, combating or defending against an actual, impending or
     expected attack by any government or sovereign power, de jure or de facto,
     or by any authority maintaining or using military, naval or air forces, or
     by military, naval or air forces, or by an agent of any such government,
     power, authority or forces;

          (iii) any weapon of war employing atomic fission or radioactive forces
     whether in time of peace or war, and

          (iv) insurrection, rebellion, revolution, civil war, usurped power or
     action taken by governmental authority in hindering, combating or defending
     against such an occurrence, seizure or destruction under quarantine or
     customs regulations, confiscation by order of any government or public
     authority, or risks of contraband or illegal transactions or trade.

     Extraordinary Trust Fund Expenses: Any amounts reimbursable to the Master
Servicer or the Depositor pursuant to this Agreement, including but not limited
to Sections 4.03, 4.05 and 7.04, any amounts reimbursable to the Trustee and the
Securities Administrator from the Trust Fund pursuant to this Agreement,
including but not limited to Section 9.05, and any other costs, expenses,
liabilities and losses borne by the Trust Fund (exclusive of any cost, expense,
liability or loss that is specific to a particular Mortgage Loan or REO Property
and is taken into account in calculating a Realized Loss in respect thereof) for
which the Trust Fund has not and, in the

                                      -14-

<PAGE>

reasonable good faith judgment of the Securities Administrator, shall not,
obtain reimbursement or indemnification from any other Person.

     Fannie Mae: Federal National Mortgage Association or any successor thereto.

     FDIC: Federal Deposit Insurance Corporation or any successor thereto.

     Final Certification: The certification substantially in the form of Exhibit
Two to the Custodial Agreement.

     Fitch: Fitch Ratings or its successor in interest.

     Form 8-K Disclosure Information: As defined in Section 3.18(a).

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

     Global Certificate: Any Private Certificate registered in the name of the
Depository or its nominee, beneficial interests in which are reflected on the
books of the Depository or on the books of a Person maintaining an account with
such Depository (directly or as an indirect participant in accordance with the
rules of such depository).

     Gross Margin: As to each Mortgage Loan, the fixed percentage set forth in
the related Mortgage Note and indicated on the Mortgage Loan Schedule which
percentage is added to the related Index on each Interest Adjustment Date to
determine (subject to rounding, the minimum and maximum Mortgage Interest Rate
and the Periodic Rate Cap) the Mortgage Interest Rate until the next Interest
Adjustment Date.

     Group I Available Funds: With respect to any Distribution Date and the
Group I Mortgage Loans, an amount equal to the excess of (i) the sum of (a) the
aggregate of the related Monthly Payments received on or prior to the related
Determination Date, (b) Liquidation Proceeds, Insurance Proceeds, Principal
Prepayments, Subsequent Recoveries and other unscheduled recoveries of principal
and interest in respect of the Group I Mortgage Loans during the related
Prepayment Period, (c) the aggregate of any amounts received in respect of a
related REO Property withdrawn from any Protected Account and deposited in the
Master Servicer Collection Account for such Distribution Date, (d) the aggregate
of any amounts deposited in the Master Servicer Collection Account by the
related Servicer or the Master Servicer in respect of related Prepayment
Interest Shortfalls for such Distribution Date and (e) the aggregate of any
related Monthly Advances made by the related Servicer or the Master Servicer for
such Distribution Date, over (ii) the sum of (a) related amounts reimbursable or
payable to the related Servicer or the Master Servicer pursuant to Sections 4.03
and 4.05, (b) related amounts deposited in the Master Servicer Collection
Account or the Distribution Account, as the case may be, in error and (c) any
Extraordinary Trust Fund Expenses.

     Group I Certificates: The Class I-A and Class A-R Certificates.

     Group I Mortgage Loans: The Mortgage Loans identified as such on the
Mortgage Loan Schedule.

                                      -15-

<PAGE>

     Group I Senior Accelerated Distribution Percentage: With respect to any
Distribution Date, the percentage indicated below:

<TABLE>
<CAPTION>
    Distribution Date         Group I Senior Accelerated Distribution Percentage
    -----------------        ---------------------------------------------------
<S>                          <C>
June 2006 through May 2013   100%

June 2013 through May 2014   Group I Senior Percentage, plus 70% of the Group I
                             Subordinate Percentage

June 2014 through May 2015   Group I Senior Percentage, plus 60% of the Group I
                             Subordinate Percentage

June 2015 through May 2016   Group I Senior Percentage, plus 40% of the Group I
                             Subordinate Percentage

June 2016 through May 2017   Group I Senior Percentage, plus 20% of the Group I
                             Subordinate Percentage

June 2017 and thereafter     Group I Senior Percentage
</TABLE>

provided, however, (i) that any scheduled reduction to the Group I Senior
Accelerated Distribution Percentage described above shall not occur as of any
Distribution Date unless either (a)(1)(x) the outstanding principal balance of
Mortgage Loans delinquent 60 days or more (including foreclosure and REO
Property) averaged over the last six months as a percentage of the aggregate
outstanding Class Certificate Balance of the Class M Certificates and the Class
B Certificates, is less than 50%, or (y) the outstanding principal balance of
Mortgage Loans delinquent 60 days or more (including foreclosure and REO
Property) averaged over the last six months, as a percentage of the aggregate
outstanding principal balance of all Mortgage Loans averaged over the last six
months, does not exceed 2% and (2) Realized Losses on the Mortgage Loans to date
for such Distribution Date if occurring during the eighth, ninth, tenth,
eleventh or twelfth year (or any year thereafter) after the Closing Date are
less than 30%, 35%, 40%, 45% or 50%, respectively, of the sum of the Initial
Class Certificate Balances of the Class M Certificates and Class B Certificates
or (b) (1) the aggregate outstanding principal balance of the Mortgage Loans
delinquent 60 days or more (including foreclosure and REO Property) averaged
over the last six months, as a percentage of the aggregate outstanding principal
balance of all Mortgage Loans averaged over the last six months, does not exceed
4% and (2) Realized Losses on the Mortgage Loans on or prior to such
Distribution Date if occurring during the eighth, ninth, tenth, eleventh or
twelfth year (or any year thereafter) after the Closing Date are less than 10%,
15%, 20%, 25% or 30%, respectively, of the sum of the Initial Class Certificate
Balances of the Class M Certificates and Class B Certificates and (ii) that for
any Distribution Date on which the Group I Senior Percentage is greater than the
Original Group I Senior Percentage, the Group I Senior Accelerated Distribution
Percentage, Group II Senior Accelerated Distribution Percentage, Group III
Senior Accelerated Distribution Percentage, Group IV Senior Accelerated
Distribution Percentage, Group V Senior Accelerated Distribution Percentage and
Group VI Senior Accelerated Distribution Percentage for such Distribution Date
shall be 100%. Notwithstanding the foregoing, upon the reduction of the
aggregate Class Certificate Balance of the Class I-A Certificates to zero, the
Group I Senior Accelerated Distribution Percentage will equal 0%.

                                      -16-

<PAGE>

     In addition, on any Distribution Date on or after the Distribution Date
occurring in June 2009, if the current weighted average of the Subordinate
Percentages for the Certificates is equal to or greater than two times the
initial weighted average of the Subordinate Percentages for the Certificates,
and (a) the outstanding principal balance of the Mortgage Loans delinquent 60
days or more (including for this purpose any such Mortgage Loans in foreclosure
or bankruptcy and such Mortgage Loans with respect to which the related
Mortgaged Property has been acquired by the Issuing Entity), averaged over the
last six months, as a percentage of the Subordinate Percentage for that
Distribution Date times the aggregate Stated Principal Balance of the Mortgage
Loans, does not exceed 50% and (b) cumulative Realized Losses on the Mortgage
Loans do not exceed 20% of the initial Subordinate Percentage times the
aggregate Stated Principal Balance of the Mortgage Loans as of the Cut-off Date,
then, in each case, the Group I Senior Accelerated Distribution Percentage for
such Distribution Date will be equal to, prior to the Distribution Date
occurring in June 2009, the Group I Senior Percentage plus 50% of the
Subordinate Percentage and, on or after the Distribution Date occurring in June
2009, the Group I Senior Percentage.

     Group I Senior Percentage: As of any Distribution Date, the lesser of 100%
and a fraction, expressed as a percentage, the numerator of which is the
aggregate Class Certificate Balance of the Class I-A Certificates immediately
prior to such Distribution Date and the denominator of which is the aggregate
Stated Principal Balance of all of the Group I Mortgage Loans or related REO
Properties immediately prior to such Distribution Date.

     Group I Senior Principal Distribution Amount: As to any Distribution Date,
the lesser of (a) the balance of the Group I Available Funds remaining after the
distribution of all amounts required to be distributed pursuant to subclause
first and second of Section 6.01(A) and (b) the sum of the following:

               (A) the Group I Senior Percentage for such Distribution Date
     times the sum of the following:

                    (1) the principal portion of each Monthly Payment due during
          the related Due Period on each Outstanding Mortgage Loan in Loan Group
          I, whether or not received on or prior to the related Determination
          Date, minus the principal portion of any Debt Service Reduction;

                    (2) the Stated Principal Balance of any Group I Mortgage
          Loan repurchased during the related Prepayment Period pursuant to
          Section 2.02 or 2.03 hereof or pursuant to the related Servicing
          Agreement; and

                    (3) the principal portion of all other unscheduled
          collections, including Subsequent Recoveries (other than Principal
          Prepayments in Full and Curtailments and amounts received in
          connection with the liquidation or disposition of a Group I Mortgage
          Loan, including without limitation Insurance Proceeds, Liquidation
          Proceeds and REO Proceeds) received during the related Prepayment
          Period to the extent applied by the related Servicer as recoveries of
          principal of the related Mortgage Loan pursuant to related Servicing
          Agreement;

                                      -17-

<PAGE>

               (B) with respect to the liquidation or other disposition of a
     Group I Mortgage Loan which occurred during the related Prepayment Period
     and did not result in any Extraordinary Losses, an amount equal to the
     lesser of (a) the Group I Senior Percentage for such Distribution Date
     times the Stated Principal Balance of such Group I Mortgage Loan and (b)
     the Group I Senior Accelerated Distribution Percentage for such
     Distribution Date times the related unscheduled collections (including
     without limitation Insurance Proceeds, Liquidation Proceeds and REO
     Proceeds) to the extent applied by the related Servicer or the Master
     Servicer as recoveries of principal of the related Mortgage Loan pursuant
     to the related Servicing Agreement or this Agreement;

               (C) the Group I Senior Accelerated Distribution Percentage for
     such Distribution Date times the aggregate of all Principal Prepayments in
     Full and Curtailments received in the related Prepayment Period with
     respect to the Group I Mortgage Loans;

               (D) any amounts described in clauses (A), (B) or (C) of this
     definition, as determined for any previous Distribution Date, which remain
     unpaid after application of amounts previously distributed pursuant to this
     clause (D) to the extent that such amounts are not attributable to Realized
     Losses which have been allocated to the Class M Certificates or Class B
     Certificates;

     Group I Subordinate Amount: On any date of determination, the excess of the
aggregate Stated Principal Balance of the Group I Mortgage Loans as of such date
over the aggregate Class Certificate Balances of the Group I Certificates then
outstanding.

     Group II Available Funds: With respect to any Distribution Date and the
Group II Mortgage Loans, an amount equal to the excess of (i) the sum of (a) the
aggregate of the related Monthly Payments received on or prior to the related
Determination Date, (b) Liquidation Proceeds, Insurance Proceeds, Principal
Prepayments, Subsequent Recoveries and other unscheduled recoveries of principal
and interest in respect of the Group II Mortgage Loans during the related
Prepayment Period, (c) the aggregate of any amounts received in respect of a
related REO Property withdrawn from any Protected Account and deposited in the
Master Servicer Collection Account for such Distribution Date, (d) the aggregate
of any amounts deposited in the Master Servicer Collection Account by the
related Servicer or the Master Servicer in respect of related Prepayment
Interest Shortfalls for such Distribution Date and (e) the aggregate of any
related Monthly Advances made by the related Servicer or the Master Servicer for
such Distribution Date, over (ii) the sum of (a) related amounts reimbursable or
payable to the related Servicer or the Master Servicer pursuant to Sections 4.03
and 4.05, (b) related amounts deposited in the Master Servicer Collection
Account or the Distribution Account, as the case may be, in error and (c) any
Extraordinary Trust Fund Expenses.

     Group II Certificates: The Class II-A-1 Certificates and Class II-A-2
Certificates.

     Group II Mortgage Loans: The Mortgage Loans identified as such on the
Mortgage Loan Schedule.

                                      -18-

<PAGE>

     Group II Senior Accelerated Distribution Percentage: With respect to any
Distribution Date, the percentage indicated below:

<TABLE>
<CAPTION>
    Distribution Date        Group II Senior Accelerated Distribution Percentage
    -----------------        ---------------------------------------------------
<S>                          <C>
June 2006 through May 2013   100%

June 2013 through May 2014   Group II Senior Percentage, plus 70% of the Group II
                             Subordinate Percentage

June 2014 through May 2015   Group II Senior Percentage, plus 60% of the Group II
                             Subordinate Percentage

June 2015 through May 2016   Group II Senior Percentage, plus 40% of the Group II
                             Subordinate Percentage

June 2016 through May 2017   Group II Senior Percentage, plus 20% of the Group II
                             Subordinate Percentage

June 2017 and thereafter     Group II Senior Percentage
</TABLE>

provided, however, (i) that any scheduled reduction to the Group II Senior
Accelerated Distribution Percentage described above shall not occur as of any
Distribution Date unless either (a)(1)(x) the outstanding principal balance of
Mortgage Loans delinquent 60 days or more (including foreclosure and REO
Property) averaged over the last six months as a percentage of the aggregate
outstanding Class Certificate Balance of the Class M Certificates and the Class
B Certificates, is less than 50%, or (y) the outstanding principal balance of
Mortgage Loans delinquent 60 days or more (including foreclosure and REO
Property) averaged over the last six months, as a percentage of the aggregate
outstanding principal balance of all Mortgage Loans averaged over the last six
months, does not exceed 2% and (2) Realized Losses on the Mortgage Loans to date
for such Distribution Date if occurring during the eighth, ninth, tenth,
eleventh or twelfth year (or any year thereafter) after the Closing Date are
less than 30%, 35%, 40%, 45% or 50%, respectively, of the sum of the Initial
Class Certificate Balances of the Class M Certificates and Class B Certificates
or (b) (1) the aggregate outstanding principal balance of the Mortgage Loans
delinquent 60 days or more (including foreclosure and REO Property) averaged
over the last six months, as a percentage of the aggregate outstanding principal
balance of all Mortgage Loans averaged over the last six months, does not exceed
4% and (2) Realized Losses on the Mortgage Loans on or prior to such
Distribution Date if occurring during the eighth, ninth, tenth, eleventh or
twelfth year (or any year thereafter) after the Closing Date are less than 10%,
15%, 20%, 25% or 30%, respectively, of the sum of the Initial Class Certificate
Balances of the Class M Certificates and Class B Certificates and (ii) that for
any Distribution Date on which the Group II Senior Percentage is greater than
the Original Group II Senior Percentage, the Group I Senior Accelerated
Distribution Percentage, Group II Senior Accelerated Distribution Percentage,
Group III Senior Accelerated Distribution Percentage, Group IV Senior
Accelerated Distribution Percentage, Group V Senior Accelerated Distribution
Percentage and Group VI Senior Accelerated Distribution Percentage for such
Distribution Date shall be 100%. Notwithstanding the foregoing, upon the
reduction of the aggregate Class Certificate Balance of the Class II-A-1 and
Class II-A-2 Certificates to zero, the Group II Senior Accelerated Distribution
Percentage will equal 0%.

                                      -19-

<PAGE>

     In addition, on any Distribution Date on or after the Distribution Date
occurring in June 2009, if the current weighted average of the Subordinate
Percentages for the Certificates is equal to or greater than two times the
initial weighted average of the Subordinate Percentages for the Certificates,
and (a) the outstanding principal balance of the Mortgage Loans delinquent 60
days or more (including for this purpose any such Mortgage Loans in foreclosure
or bankruptcy and such Mortgage Loans with respect to which the related
Mortgaged Property has been acquired by the Trust), averaged over the last six
months, as a percentage of the Subordinate Percentage for that Distribution Date
times the aggregate Stated Principal Balance of the Mortgage Loans, does not
exceed 50% and (b) cumulative Realized Losses on the Mortgage Loans do not
exceed 20% of the initial Subordinate Percentage times the aggregate Stated
Principal Balance of the Mortgage Loans as of the Cut-off Date, then, in each
case, the Group II Senior Accelerated Distribution Percentage for such
Distribution Date will be equal to, prior to the Distribution Date occurring in
June 2009, the Group II Senior Percentage plus 50% of the Subordinate Percentage
and, on or after the Distribution Date occurring in June 2009, the Group II
Senior Percentage.

     Group II Senior Percentage: As of any Distribution Date, the lesser of 100%
and a fraction, expressed as a percentage, the numerator of which is the
aggregate Class Certificate Balance of the Class II-A-1 and Class II-A-2
Certificates immediately prior to such Distribution Date and the denominator of
which is the aggregate Stated Principal Balance of all of the Group II Mortgage
Loans or related REO Properties immediately prior to such Distribution Date.

     Group II Senior Principal Distribution Amount: As to any Distribution Date,
the lesser of (a) the balance of the Group II Available Funds remaining after
the distribution of all amounts required to be distributed pursuant to Section
6.01(B) and (b) the sum of the following:

               (A) the Group II Senior Percentage for such Distribution Date
     times the sum of the following:

                    (1) the principal portion of each Monthly Payment due during
          the related Due Period on each Outstanding Mortgage Loan in Loan Group
          II, whether or not received on or prior to the related Determination
          Date, minus the principal portion of any Debt Service Reduction;

                    (2) the Stated Principal Balance of any Group II Mortgage
          Loan repurchased during the related Prepayment Period pursuant to
          Section 2.02 or 2.03 hereof or the related Servicing Agreement; and

                    (3) the principal portion of all other unscheduled
          collections, including Subsequent Recoveries (other than Principal
          Prepayments in Full and Curtailments and amounts received in
          connection with the liquidation or disposition of a Group II Mortgage
          Loan, including without limitation Insurance Proceeds, Liquidation
          Proceeds and REO Proceeds) received during the related Prepayment
          Period to the extent applied by the related Servicer as recoveries of
          principal of the related Mortgage Loan pursuant to related Servicing
          Agreement;

               (B) with respect to the liquidation or other disposition of a
     Group II Mortgage Loan which occurred during the related Prepayment Period
     and did not result

                                      -20-

<PAGE>

     in any Extraordinary Losses, an amount equal to the lesser of (a) the Group
     II Senior Percentage for such Distribution Date times the Stated Principal
     Balance of such Group II Mortgage Loan and (b) the Group II Senior
     Accelerated Distribution Percentage for such Distribution Date times the
     related unscheduled collections (including without limitation Insurance
     Proceeds, Liquidation Proceeds and REO Proceeds) to the extent applied by
     the related Servicer or the Master Servicer as recoveries of principal of
     the related Mortgage Loan pursuant to the related Servicing Agreement or
     this Agreement;

               (C) the Group II Senior Accelerated Distribution Percentage for
     such Distribution Date times the aggregate of all Principal Prepayments in
     Full and Curtailments received in the related Prepayment Period with
     respect to the Group II Mortgage Loans;

               (D) any amounts described in clauses (A), (B) or (C) of this
     definition, as determined for any previous Distribution Date, which remain
     unpaid after application of amounts previously distributed pursuant to this
     clause (D) to the extent that such amounts are not attributable to Realized
     Losses which have been allocated to the Class M Certificates or Class B
     Certificates;

     Group II Subordinate Amount: On any date of determination, the excess of
the aggregate Stated Principal Balance of the Group II Mortgage Loans as of such
date over the aggregate Class Certificate Balances of the Group II Certificates
then outstanding.

     Group III Available Funds: With respect to any Distribution Date and the
Group III Mortgage Loans, an amount equal to the excess of (i) the sum of (a)
the aggregate of the related Monthly Payments received on or prior to the
related Determination Date, (b) Liquidation Proceeds, Insurance Proceeds,
Principal Prepayments, Subsequent Recoveries and other unscheduled recoveries of
principal and interest in respect of the Group III Mortgage Loans during the
related Prepayment Period, (c) the aggregate of any amounts received in respect
of a related REO Property withdrawn from any Protected Account and deposited in
the Master Servicer Collection Account for such Distribution Date, (d) the
aggregate of any amounts deposited in the Master Servicer Collection Account by
the related Servicer or the Master Servicer in respect of related Prepayment
Interest Shortfalls for such Distribution Date and (e) the aggregate of any
related Monthly Advances made by the related Servicer or the Master Servicer for
such Distribution Date, over (ii) the sum of (a) related amounts reimbursable or
payable to the related Servicer or the Master Servicer pursuant to Sections 4.03
and 4.05, (b) related amounts deposited in the Master Servicer Collection
Account or the Distribution Account, as the case may be, in error and (c) any
Extraordinary Trust Fund Expenses.

     Group III Certificates: The Class III-A-1 and Class III-A-2 Certificates.

     Group III Mortgage Loans: The Mortgage Loans identified as such on the
Mortgage Loan Schedule.

     Group III Senior Accelerated Distribution Percentage: With respect to any
Distribution Date, the percentage indicated below:

                                      -21-

<PAGE>

<TABLE>
<CAPTION>
    Distribution Date        Group III Senior Accelerated Distribution Percentage
    -----------------        ----------------------------------------------------
<S>                          <C>
June 2006 through May 2013   100%

June 2013 through May 2014   Group III Senior Percentage, plus 70% of the Group
                             III Subordinate Percentage

June 2014 through May 2015   Group III Senior Percentage, plus 60% of the Group
                             III Subordinate Percentage

June 2015 through May 2016   Group III Senior Percentage, plus 40% of the Group
                             III Subordinate Percentage

June 2016 through May 2017   Group III Senior Percentage, plus 20% of the Group
                             III Subordinate Percentage

June 2017 and thereafter     Group III Senior Percentage
</TABLE>

provided, however, (i) that any scheduled reduction to the Group III Senior
Accelerated Distribution Percentage described above shall not occur as of any
Distribution Date unless either (a)(1)(x) the outstanding principal balance of
Mortgage Loans delinquent 60 days or more (including foreclosure and REO
Property) averaged over the last six months as a percentage of the aggregate
outstanding Class Certificate Balance of the Class M Certificates and the Class
B Certificates, is less than 50%, or (y) the outstanding principal balance of
Mortgage Loans delinquent 60 days or more (including foreclosure and REO
Property) averaged over the last six months, as a percentage of the aggregate
outstanding principal balance of all Mortgage Loans averaged over the last six
months, does not exceed 2% and (2) Realized Losses on the Mortgage Loans to date
for such Distribution Date if occurring during the eighth, ninth, tenth,
eleventh or twelfth year (or any year thereafter) after the Closing Date are
less than 30%, 35%, 40%, 45% or 50%, respectively, of the sum of the Initial
Class Certificate Balances of the Class M Certificates and Class B Certificates
or (b) (1) the aggregate outstanding principal balance of the Mortgage Loans
delinquent 60 days or more (including foreclosure and REO Property) averaged
over the last six months, as a percentage of the aggregate outstanding principal
balance of all Mortgage Loans averaged over the last six months, does not exceed
4% and (2) Realized Losses on the Mortgage Loans on or prior to such
Distribution Date if occurring during the eighth, ninth, tenth, eleventh or
twelfth year (or any year thereafter) after the Closing Date are less than 10%,
15%, 20%, 25% or 30%, respectively, of the sum of the Initial Class Certificate
Balances of the Class M Certificates and Class B Certificates and (ii) that for
any Distribution Date on which the Group III Senior Percentage is greater than
the Original Group III Senior Percentage, the Group I Senior Accelerated
Distribution Percentage, Group II Senior Accelerated Distribution Percentage,
Group III Senior Accelerated Distribution Percentage, Group IV Senior
Accelerated Distribution Percentage, Group V Senior Accelerated Distribution
Percentage and Group VI Senior Accelerated Distribution Percentage for such
Distribution Date shall be 100%. Notwithstanding the foregoing, upon the
reduction of the aggregate Class Certificate Balance of the Class III-A
Certificates to zero, the Group III Senior Accelerated Distribution Percentage
will equal 0%.

     In addition, on any Distribution Date on or after the Distribution Date
occurring in June 2009, if the current weighted average of the Subordinate
Percentages for the

                                      -22-

<PAGE>

Certificates is equal to or greater than two times the initial weighted average
of the Subordinate Percentages for the Certificates, and (a) the outstanding
principal balance of the Mortgage Loans delinquent 60 days or more (including
for this purpose any such Mortgage Loans in foreclosure or bankruptcy and such
Mortgage Loans with respect to which the related Mortgaged Property has been
acquired by the Trust), averaged over the last six months, as a percentage of
the Subordinate Percentage for that Distribution Date times the aggregate Stated
Principal Balance of the Mortgage Loans, does not exceed 50% and (b) cumulative
Realized Losses on the Mortgage Loans do not exceed 20% of the initial
Subordinate Percentage times the aggregate Stated Principal Balance of the
Mortgage Loans as of the Cut-off Date, then, in each case, the Group III Senior
Accelerated Distribution Percentage for such Distribution Date will be equal to,
prior to the Distribution Date occurring in June 2009, the Group III Senior
Percentage plus 50% of the Subordinate Percentage and, on or after the
Distribution Date occurring in June 2009, the Group III Senior Percentage.

     Group III Senior Percentage: As of any Distribution Date, the lesser of
100% and a fraction, expressed as a percentage, the numerator of which is the
aggregate Class Certificate Balance of the Class III-A Certificates immediately
prior to such Distribution Date and the denominator of which is the aggregate
Stated Principal Balance of all of the Group III Mortgage Loans or related REO
Properties immediately prior to such Distribution Date.

     Group III Senior Principal Distribution Amount: As to any Distribution
Date, the lesser of (a) the balance of the Group III Available Funds remaining
after the distribution of all amounts required to be distributed pursuant to
Section 6.01(C) and (b) the sum of the following:

               (A) the Group III Senior Percentage for such Distribution Date
     times the sum of the following:

                    (1) the principal portion of each Monthly Payment due during
          the related Due Period on each Outstanding Mortgage Loan in Loan Group
          II, whether or not received on or prior to the related Determination
          Date, minus the principal portion of any Debt Service Reduction;

                    (2) the Stated Principal Balance of any Group III Mortgage
          Loan repurchased during the related Prepayment Period pursuant to
          Section 2.02 or 2.03 hereof or the related Servicing Agreement; and

                    (3) the principal portion of all other unscheduled
          collections, including Subsequent Recoveries (other than Principal
          Prepayments in Full and Curtailments and amounts received in
          connection with the liquidation or disposition of a Group III Mortgage
          Loan, including without limitation Insurance Proceeds, Liquidation
          Proceeds and REO Proceeds) received during the related Prepayment
          Period to the extent applied by the related Servicer as recoveries of
          principal of the related Mortgage Loan pursuant to related Servicing
          Agreement;

               (B) with respect to the liquidation or other disposition of a
     Group III Mortgage Loan which occurred during the related Prepayment Period
     and did not result in any Extraordinary Losses, an amount equal to the
     lesser of (a) the Group III Senior Percentage for such Distribution Date
     times the Stated Principal Balance of such Group III Mortgage Loan and (b)
     the Group III Senior Accelerated Distribution Percentage for

                                      -23-

<PAGE>

     such Distribution Date times the related unscheduled collections (including
     without limitation Insurance Proceeds, Liquidation Proceeds and REO
     Proceeds) to the extent applied by the related Servicer or the Master
     Servicer as recoveries of principal of the related Mortgage Loan pursuant
     to the related Servicing Agreement or this Agreement;

               (C) the Group III Senior Accelerated Distribution Percentage for
     such Distribution Date times the aggregate of all Principal Prepayments in
     Full and Curtailments received in the related Prepayment Period with
     respect to the Group III Mortgage Loans;

               (D) any amounts described in clauses (A), (B) or (C) of this
     definition, as determined for any previous Distribution Date, which remain
     unpaid after application of amounts previously distributed pursuant to this
     clause (D) to the extent that such amounts are not attributable to Realized
     Losses which have been allocated to the Class M Certificates or Class B
     Certificates;

     Group III Subordinate Amount: On any date of determination, the excess of
the aggregate Stated Principal Balance of the Group III Mortgage Loans as of
such date over the aggregate Class Certificate Balances of the Group III
Certificates then outstanding.

     Group IV Available Funds: With respect to any Distribution Date and the
Group IV Mortgage Loans, an amount equal to the excess of (i) the sum of (a) the
aggregate of the related Monthly Payments received on or prior to the related
Determination Date, (b) Liquidation Proceeds, Insurance Proceeds, Principal
Prepayments, Subsequent Recoveries and other unscheduled recoveries of principal
and interest in respect of the Group IV Mortgage Loans during the related
Prepayment Period, (c) the aggregate of any amounts received in respect of a
related REO Property withdrawn from any Protected Account and deposited in the
Master Servicer Collection Account for such Distribution Date, (d) the aggregate
of any amounts deposited in the Master Servicer Collection Account by the
related Servicer or the Master Servicer in respect of related Prepayment
Interest Shortfalls for such Distribution Date and (e) the aggregate of any
related Monthly Advances made by the related Servicer or the Master Servicer for
such Distribution Date, over (ii) the sum of (a) related amounts reimbursable or
payable to the related Servicer or the Master Servicer pursuant to Sections 4.03
and 4.05, (b) related amounts deposited in the Master Servicer Collection
Account or the Distribution Account, as the case may be, in error and (c) any
Extraordinary Trust Fund Expenses.

     Group IV Certificates: The Class IV-A-1 and Class IV-A-2 Certificates.

     Group IV Mortgage Loans: The Mortgage Loans identified as such on the
Mortgage Loan Schedule.

     Group IV Senior Accelerated Distribution Percentage: With respect to any
Distribution Date, the percentage indicated below:

                                      -24-

<PAGE>

<TABLE>
<CAPTION>
    Distribution Date        Group IV Senior Accelerated Distribution Percentage
    -----------------        ---------------------------------------------------
<S>                          <C>
June 2006 through May 2013   100%

June 2013 through May 2014   Group IV Senior Percentage, plus 70% of the Group IV
                             Subordinate Percentage

June 2014 through May 2015   Group IV Senior Percentage, plus 60% of the Group IV
                             Subordinate Percentage

June 2015 through May 2016   Group IV Senior Percentage, plus 40% of the Group IV
                             Subordinate Percentage

June 2016 through May 2017   Group IV Senior Percentage, plus 20% of the Group IV
                             Subordinate Percentage

June 2017 and thereafter     Group IV Senior Percentage
</TABLE>

provided, however, (i) that any scheduled reduction to the Group IV Senior
Accelerated Distribution Percentage described above shall not occur as of any
Distribution Date unless either (a)(1)(x) the outstanding principal balance of
Mortgage Loans delinquent 60 days or more (including foreclosure and REO
Property) averaged over the last six months as a percentage of the aggregate
outstanding Class Certificate Balance of the Class M Certificates and the Class
B Certificates, is less than 50%, or (y) the outstanding principal balance of
Mortgage Loans delinquent 60 days or more (including foreclosure and REO
Property) averaged over the last six months, as a percentage of the aggregate
outstanding principal balance of all Mortgage Loans averaged over the last six
months, does not exceed 2% and (2) Realized Losses on the Mortgage Loans to date
for such Distribution Date if occurring during the eighth, ninth, tenth,
eleventh or twelfth year (or any year thereafter) after the Closing Date are
less than 30%, 35%, 40%, 45% or 50%, respectively, of the sum of the Initial
Class Certificate Balances of the Class M Certificates and Class B Certificates
or (b) (1) the aggregate outstanding principal balance of the Mortgage Loans
delinquent 60 days or more (including foreclosure and REO Property) averaged
over the last six months, as a percentage of the aggregate outstanding principal
balance of all Mortgage Loans averaged over the last six months, does not exceed
4% and (2) Realized Losses on the Mortgage Loans on or prior to such
Distribution Date if occurring during the eighth, ninth, tenth, eleventh or
twelfth year (or any year thereafter) after the Closing Date are less than 10%,
15%, 20%, 25% or 30%, respectively, of the sum of the Initial Class Certificate
Balances of the Class M Certificates and Class B Certificates and (ii) that for
any Distribution Date on which the Group IV Senior Percentage is greater than
the Original Group IV Senior Percentage, the Group I Senior Accelerated
Distribution Percentage, Group II Senior Accelerated Distribution Percentage,
Group III Senior Accelerated Distribution Percentage, Group IV Senior
Accelerated Distribution Percentage, Group V Senior Accelerated Distribution
Percentage and Group VI Senior Accelerated Distribution Percentage for such
Distribution Date shall be 100%. Notwithstanding the foregoing, upon the
reduction of the aggregate Class Certificate Balance of the Class IV-A
Certificates to zero, the Group IV Senior Accelerated Distribution Percentage
will equal 0%.

     In addition, on any Distribution Date on or after the Distribution Date
occurring in June 2009, if the current weighted average of the Subordinate
Percentages for the Certificates is equal to or greater than two times the
initial weighted average of the Subordinate Percentages for the Certificates,
and (a) the outstanding principal balance of the Mortgage Loans delinquent 60
days or more (including for this purpose any such Mortgage Loans in foreclosure
or bankruptcy and

                                      -25-

<PAGE>

such Mortgage Loans with respect to which the related Mortgaged Property has
been acquired by the Trust), averaged over the last six months, as a percentage
of the Subordinate Percentage for that Distribution Date times the aggregate
Stated Principal Balance of the Mortgage Loans, does not exceed 50% and (b)
cumulative Realized Losses on the Mortgage Loans do not exceed 20% of the
initial Subordinate Percentage times the aggregate Stated Principal Balance of
the Mortgage Loans as of the Cut-off Date, then, in each case, the Group IV
Senior Accelerated Distribution Percentage for such Distribution Date will be
equal to, prior to the Distribution Date occurring in June 2009, the Group IV
Senior Percentage plus 50% of the Subordinate Percentage and, on or after the
Distribution Date occurring in June 2009, the Group IV Senior Percentage.

     Group IV Senior Percentage: As of any Distribution Date, the lesser of 100%
and a fraction, expressed as a percentage, the numerator of which is the
aggregate Class Certificate Balance of the Class IV-A Certificates immediately
prior to such Distribution Date and the denominator of which is the aggregate
Stated Principal Balance of all of the Group IV Mortgage Loans or related REO
Properties immediately prior to such Distribution Date.

     Group IV Senior Principal Distribution Amount: As to any Distribution Date,
the lesser of (a) the balance of the Group IV Available Funds remaining after
the distribution of all amounts required to be distributed pursuant to Section
6.01(D) and (b) the sum of the following:

               (A) the Group IV Senior Percentage for such Distribution Date
     times the sum of the following:

                    (1) the principal portion of each Monthly Payment due during
          the related Due Period on each Outstanding Mortgage Loan in Loan Group
          IV, whether or not received on or prior to the related Determination
          Date, minus the principal portion of any Debt Service Reduction;

                    (2) the Stated Principal Balance of any Group IV Mortgage
          Loan repurchased during the related Prepayment Period pursuant to
          Section 2.02 or 2.03 hereof or the related Servicing Agreement; and

                    (3) the principal portion of all other unscheduled
          collections, including Subsequent Recoveries (other than Principal
          Prepayments in Full and Curtailments and amounts received in
          connection with the liquidation or disposition of a Group IV Mortgage
          Loan, including without limitation Insurance Proceeds, Liquidation
          Proceeds and REO Proceeds) received during the related Prepayment
          Period to the extent applied by the related Servicer as recoveries of
          principal of the related Mortgage Loan pursuant to related Servicing
          Agreement;

               (B) with respect to the liquidation or other disposition of a
     Group IV Mortgage Loan which occurred during the related Prepayment Period
     and did not result in any Extraordinary Losses, an amount equal to the
     lesser of (a) the Group IV Senior Percentage for such Distribution Date
     times the Stated Principal Balance of such Group IV Mortgage Loan and (b)
     the Group IV Senior Accelerated Distribution Percentage for such
     Distribution Date times the related unscheduled collections (including
     without limitation Insurance Proceeds, Liquidation Proceeds and REO
     Proceeds) to the extent

                                      -26-

<PAGE>

     applied by the related Servicer or the Master Servicer as recoveries of
     principal of the related Mortgage Loan pursuant to the related Servicing
     Agreement or this Agreement;

               (C) the Group IV Senior Accelerated Distribution Percentage for
     such Distribution Date times the aggregate of all Principal Prepayments in
     Full and Curtailments received in the related Prepayment Period with
     respect to the Group IV Mortgage Loans;

               (D) any amounts described in clauses (A), (B), (C), (D) or (E) of
     this definition, as determined for any previous Distribution Date, which
     remain unpaid after application of amounts previously distributed pursuant
     to this clause (L) to the extent that such amounts are not attributable to
     Realized Losses which have been allocated to the Class M Certificates or
     Class B Certificates;

     Group IV Subordinate Amount: On any date of determination, the excess of
the aggregate Stated Principal Balance of the Group IV Mortgage Loans as of such
date over the aggregate Class Certificate Balances of the Group IV Certificates
then outstanding.

     Group V Available Funds: With respect to any Distribution Date and the
Group V Mortgage Loans, an amount equal to the excess of (i) the sum of (a) the
aggregate of the related Monthly Payments received on or prior to the related
Determination Date, (b) Liquidation Proceeds, Insurance Proceeds, Principal
Prepayments, Subsequent Recoveries and other unscheduled recoveries of principal
and interest in respect of the Group V Mortgage Loans during the related
Prepayment Period, (c) the aggregate of any amounts received in respect of a
related REO Property withdrawn from any Protected Account and deposited in the
Master Servicer Collection Account for such Distribution Date, (d) the aggregate
of any amounts deposited in the Master Servicer Collection Account by the
related Servicer or the Master Servicer in respect of related Prepayment
Interest Shortfalls for such Distribution Date and (e) the aggregate of any
related Monthly Advances made by the related Servicer or the Master Servicer for
such Distribution Date, over (ii) the sum of (a) related amounts reimbursable or
payable to the related Servicer or the Master Servicer pursuant to Sections 4.03
and 4.05, (b) related amounts deposited in the Master Servicer Collection
Account or the Distribution Account, as the case may be, in error and (c) any
Extraordinary Trust Fund Expenses.

     Group V Certificates: The Class V-A-1 and Class V-A-2 Certificates.

     Group V Mortgage Loans: The Mortgage Loans identified as such on the
Mortgage Loan Schedule.

     Group V Senior Accelerated Distribution Percentage: With respect to any
Distribution Date, the percentage indicated below:

<TABLE>
<CAPTION>
    Distribution Date        Group IV Senior Accelerated Distribution Percentage
    -----------------        ---------------------------------------------------
<S>                          <C>
June 2006 through May 2013   100%

June 2013 through May 2014   Group V Senior Percentage, plus 70% of the Group V
                             Subordinate Percentage
</TABLE>

                                      -27-

<PAGE>

<TABLE>
<S>                          <C>
June 2014 through May 2015   Group V Senior Percentage, plus 60% of the Group V
                             Subordinate Percentage

June 2015 through May 2016   Group V Senior Percentage, plus 40% of the Group V
                             Subordinate Percentage

June 2016 through May 2017   Group V Senior Percentage, plus 20% of the Group V
                             Subordinate Percentage

June 2017 and thereafter     Group V Senior Percentage
</TABLE>

provided, however, (i) that any scheduled reduction to the Group V Senior
Accelerated Distribution Percentage described above shall not occur as of any
Distribution Date unless either (a)(1)(x) the outstanding principal balance of
Mortgage Loans delinquent 60 days or more (including foreclosure and REO
Property) averaged over the last six months as a percentage of the aggregate
outstanding Class Certificate Balance of the Class M Certificates and the Class
B Certificates, is less than 50%, or (y) the outstanding principal balance of
Mortgage Loans delinquent 60 days or more (including foreclosure and REO
Property) averaged over the last six months, as a percentage of the aggregate
outstanding principal balance of all Mortgage Loans averaged over the last six
months, does not exceed 2% and (2) Realized Losses on the Mortgage Loans to date
for such Distribution Date if occurring during the eighth, ninth, tenth,
eleventh or twelfth year (or any year thereafter) after the Closing Date are
less than 30%, 35%, 40%, 45% or 50%, respectively, of the sum of the Initial
Class Certificate Balances of the Class M Certificates and Class B Certificates
or (b) (1) the aggregate outstanding principal balance of the Mortgage Loans
delinquent 60 days or more (including foreclosure and REO Property) averaged
over the last six months, as a percentage of the aggregate outstanding principal
balance of all Mortgage Loans averaged over the last six months, does not exceed
4% and (2) Realized Losses on the Mortgage Loans on or prior to such
Distribution Date if occurring during the eighth, ninth, tenth, eleventh or
twelfth year (or any year thereafter) after the Closing Date are less than 10%,
15%, 20%, 25% or 30%, respectively, of the sum of the Initial Class Certificate
Balances of the Class M Certificates and Class B Certificates and (ii) that for
any Distribution Date on which the Group V Senior Percentage is greater than the
Original Group V Senior Percentage, the Group I Senior Accelerated Distribution
Percentage, Group II Senior Accelerated Distribution Percentage, Group III
Senior Accelerated Distribution Percentage, Group IV Senior Accelerated
Distribution Percentage, Group V Senior Accelerated Distribution Percentage and
Group VI Senior Accelerated Distribution Percentage for such Distribution Date
shall be 100%. Notwithstanding the foregoing, upon the reduction of the
aggregate Class Certificate Balance of the Class V-A Certificates to zero, the
Group V Senior Accelerated Distribution Percentage will equal 0%.

     In addition, on any Distribution Date on or after the Distribution Date
occurring in June 2009, if the current weighted average of the Subordinate
Percentages for the Certificates is equal to or greater than two times the
initial weighted average of the Subordinate Percentages for the Certificates,
and (a) the outstanding principal balance of the Mortgage Loans delinquent 60
days or more (including for this purpose any such Mortgage Loans in foreclosure
or bankruptcy and such Mortgage Loans with respect to which the related
Mortgaged Property has been acquired by the Trust), averaged over the last six
months, as a percentage of the Subordinate Percentage for

                                      -28-

<PAGE>

that Distribution Date times the aggregate Stated Principal Balance of the
Mortgage Loans, does not exceed 50% and (b) cumulative Realized Losses on the
Mortgage Loans do not exceed 20% of the initial Subordinate Percentage times the
aggregate Stated Principal Balance of the Mortgage Loans as of the Cut-off Date,
then, in each case, the Group V Senior Accelerated Distribution Percentage for
such Distribution Date will be equal to, prior to the Distribution Date
occurring in June 2009, the Group V Senior Percentage plus 50% of the
Subordinate Percentage and, on or after the Distribution Date occurring in June
2009, the Group V Senior Percentage.

     Group V Senior Percentage: As of any Distribution Date, the lesser of 100%
and a fraction, expressed as a percentage, the numerator of which is the
aggregate Class Certificate Balance of the Class V-A Certificates immediately
prior to such Distribution Date and the denominator of which is the aggregate
Stated Principal Balance of all of the Group V Mortgage Loans or related REO
Properties immediately prior to such Distribution Date.

     Group V Senior Principal Distribution Amount: As to any Distribution Date,
the lesser of (a) the balance of the Group V Available Funds remaining after the
distribution of all amounts required to be distributed pursuant to Section
6.01(D) and (b) the sum of the following:

               (A) the Group V Senior Percentage for such Distribution Date
     times the sum of the following:

                    (1) the principal portion of each Monthly Payment due during
          the related Due Period on each Outstanding Mortgage Loan in Loan Group
          V, whether or not received on or prior to the related Determination
          Date, minus the principal portion of any Debt Service Reduction;

                    (2) the Stated Principal Balance of any Group V Mortgage
          Loan repurchased during the related Prepayment Period pursuant to
          Section 2.02 or 2.03 hereof or the related Servicing Agreement; and

                    (3) the principal portion of all other unscheduled
          collections, including Subsequent Recoveries (other than Principal
          Prepayments in Full and Curtailments and amounts received in
          connection with the liquidation or disposition of a Group V Mortgage
          Loan, including without limitation Insurance Proceeds, Liquidation
          Proceeds and REO Proceeds) received during the related Prepayment
          Period to the extent applied by the related Servicer as recoveries of
          principal of the related Mortgage Loan pursuant to related Servicing
          Agreement;

               (B) with respect to the liquidation or other disposition of a
     Group V Mortgage Loan which occurred during the related Prepayment Period
     and did not result in any Extraordinary Losses, an amount equal to the
     lesser of (a) the Group IV Senior Percentage for such Distribution Date
     times the Stated Principal Balance of such Group IV Mortgage Loan and (b)
     the Group V Senior Accelerated Distribution Percentage for such
     Distribution Date times the related unscheduled collections (including
     without limitation Insurance Proceeds, Liquidation Proceeds and REO
     Proceeds) to the extent applied by the related Servicer or the Master
     Servicer as recoveries of principal of the related Mortgage Loan pursuant
     to the related Servicing Agreement or this Agreement;

                                      -29-

<PAGE>

               (C) the Group V Senior Accelerated Distribution Percentage for
     such Distribution Date times the aggregate of all Principal Prepayments in
     Full and Curtailments received in the related Prepayment Period with
     respect to the Group V Mortgage Loans;

               (D) any amounts described in clauses (A), (B), (C), (D) or (E) of
     this definition, as determined for any previous Distribution Date, which
     remain unpaid after application of amounts previously distributed pursuant
     to this clause (L) to the extent that such amounts are not attributable to
     Realized Losses which have been allocated to the Class M Certificates or
     Class B Certificates;

     Group V Subordinate Amount: On any date of determination, the excess of the
aggregate Stated Principal Balance of the Group IV Mortgage Loans as of such
date over the aggregate Class Certificate Balances of the Group IV Certificates
then outstanding.

     Group VI Available Funds: With respect to any Distribution Date and the
Group VI Mortgage Loans, an amount equal to the excess of (i) the sum of (a) the
aggregate of the related Monthly Payments received on or prior to the related
Determination Date, (b) Liquidation Proceeds, Insurance Proceeds, Principal
Prepayments, Subsequent Recoveries and other unscheduled recoveries of principal
and interest in respect of the Group VI Mortgage Loans during the related
Prepayment Period, (c) the aggregate of any amounts received in respect of a
related REO Property withdrawn from any Protected Account and deposited in the
Master Servicer Collection Account for such Distribution Date, (d) the aggregate
of any amounts deposited in the Master Servicer Collection Account by the
related Servicer or the Master Servicer in respect of related Prepayment
Interest Shortfalls for such Distribution Date and (e) the aggregate of any
related Monthly Advances made by the related Servicer or the Master Servicer for
such Distribution Date, over (ii) the sum of (a) related amounts reimbursable or
payable to the related Servicer or the Master Servicer pursuant to Sections 4.03
and 4.05, (b) related amounts deposited in the Master Servicer Collection
Account or the Distribution Account, as the case may be, in error and (c) any
Extraordinary Trust Fund Expenses.

     Group VI Certificates: The Class VI-A-1 and Class VI-A-2 Certificates.

     Group VI Mortgage Loans: The Mortgage Loans identified as such on the
Mortgage Loan Schedule.

     Group VI Senior Accelerated Distribution Percentage: With respect to any
Distribution Date, the percentage indicated below:

<TABLE>
<CAPTION>
    Distribution Date        Group IV Senior Accelerated Distribution Percentage
    -----------------        ---------------------------------------------------
<S>                          <C>
June 2006 through May 2013   100%

June 2013 through May 2014   Group VI Senior Percentage, plus 70% of the Group VI
                             Subordinate Percentage

June 2014 through May 2015   Group VI Senior Percentage, plus 60% of the Group VI
                             Subordinate Percentage
</TABLE>

                                      -30-

<PAGE>

<TABLE>
<S>                          <C>
June 2015 through May 2016   Group VI Senior Percentage, plus 40% of the Group VI
                             Subordinate Percentage

June 2016 through May 2017   Group VI Senior Percentage, plus 20% of the Group VI
                             Subordinate Percentage

June 2017 and thereafter     Group VI Senior Percentage
</TABLE>

provided, however, (i) that any scheduled reduction to the Group VI Senior
Accelerated Distribution Percentage described above shall not occur as of any
Distribution Date unless either (a)(1)(x) the outstanding principal balance of
Mortgage Loans delinquent 60 days or more (including foreclosure and REO
Property) averaged over the last six months as a percentage of the aggregate
outstanding Class Certificate Balance of the Class M Certificates and the Class
B Certificates, is less than 50%, or (y) the outstanding principal balance of
Mortgage Loans delinquent 60 days or more (including foreclosure and REO
Property) averaged over the last six months, as a percentage of the aggregate
outstanding principal balance of all Mortgage Loans averaged over the last six
months, does not exceed 2% and (2) Realized Losses on the Mortgage Loans to date
for such Distribution Date if occurring during the eighth, ninth, tenth,
eleventh or twelfth year (or any year thereafter) after the Closing Date are
less than 30%, 35%, 40%, 45% or 50%, respectively, of the sum of the Initial
Class Certificate Balances of the Class M Certificates and Class B Certificates
or (b) (1) the aggregate outstanding principal balance of the Mortgage Loans
delinquent 60 days or more (including foreclosure and REO Property) averaged
over the last six months, as a percentage of the aggregate outstanding principal
balance of all Mortgage Loans averaged over the last six months, does not exceed
4% and (2) Realized Losses on the Mortgage Loans on or prior to such
Distribution Date if occurring during the eighth, ninth, tenth, eleventh or
twelfth year (or any year thereafter) after the Closing Date are less than 10%,
15%, 20%, 25% or 30%, respectively, of the sum of the Initial Class Certificate
Balances of the Class M Certificates and Class B Certificates and (ii) that for
any Distribution Date on which the Group VI Senior Percentage is greater than
the Original Group VI Senior Percentage, the Group I Senior Accelerated
Distribution Percentage, Group II Senior Accelerated Distribution Percentage,
Group III Senior Accelerated Distribution Percentage, Group IV Senior
Accelerated Distribution Percentage, Group V Senior Accelerated Distribution
Percentage and Group VI Senior Accelerated Distribution Percentage for such
Distribution Date shall be 100%. Notwithstanding the foregoing, upon the
reduction of the aggregate Class Certificate Balance of the Class VI-A
Certificates to zero, the Group VI Senior Accelerated Distribution Percentage
will equal 0%.

     In addition, on any Distribution Date on or after the Distribution Date
occurring in June 2009, if the current weighted average of the Subordinate
Percentages for the Certificates is equal to or greater than two times the
initial weighted average of the Subordinate Percentages for the Certificates,
and (a) the outstanding principal balance of the Mortgage Loans delinquent 60
days or more (including for this purpose any such Mortgage Loans in foreclosure
or bankruptcy and such Mortgage Loans with respect to which the related
Mortgaged Property has been acquired by the Trust), averaged over the last six
months, as a percentage of the Subordinate Percentage for that Distribution Date
times the aggregate Stated Principal Balance of the Mortgage Loans, does not
exceed 50% and (b) cumulative Realized Losses on the Mortgage Loans do not
exceed 20% of the initial Subordinate Percentage times the aggregate Stated
Principal Balance of the

                                      -31-

<PAGE>

Mortgage Loans as of the Cut-off Date, then, in each case, the Group VI Senior
Accelerated Distribution Percentage for such Distribution Date will be equal to,
prior to the Distribution Date occurring in June 2009, the Group VI Senior
Percentage plus 50% of the Subordinate Percentage and, on or after the
Distribution Date occurring in June 2009, the Group VI Senior Percentage.

     Group VI Senior Percentage: As of any Distribution Date, the lesser of 100%
and a fraction, expressed as a percentage, the numerator of which is the
aggregate Class Certificate Balance of the Class VI-A Certificates immediately
prior to such Distribution Date and the denominator of which is the aggregate
Stated Principal Balance of all of the Group VI Mortgage Loans or related REO
Properties immediately prior to such Distribution Date.

     Group VI Senior Principal Distribution Amount: As to any Distribution Date,
the lesser of (a) the balance of the Group VI Available Funds remaining after
the distribution of all amounts required to be distributed pursuant to Section
6.01(D) and (b) the sum of the following:

               (A) the Group VI Senior Percentage for such Distribution Date
     times the sum of the following:

                    (1) the principal portion of each Monthly Payment due during
          the related Due Period on each Outstanding Mortgage Loan in Loan Group
          VI, whether or not received on or prior to the related Determination
          Date, minus the principal portion of any Debt Service Reduction;

                    (2) the Stated Principal Balance of any Group VI Mortgage
          Loan repurchased during the related Prepayment Period pursuant to
          Section 2.02 or 2.03 hereof or the related Servicing Agreement; and

                    (3) the principal portion of all other unscheduled
          collections, including Subsequent Recoveries (other than Principal
          Prepayments in Full and Curtailments and amounts received in
          connection with the liquidation or disposition of a Group VI Mortgage
          Loan, including without limitation Insurance Proceeds, Liquidation
          Proceeds and REO Proceeds) received during the related Prepayment
          Period to the extent applied by the related Servicer as recoveries of
          principal of the related Mortgage Loan pursuant to related Servicing
          Agreement;

               (B) with respect to the liquidation or other disposition of a
     Group VI Mortgage Loan which occurred during the related Prepayment Period
     and did not result in any Extraordinary Losses, an amount equal to the
     lesser of (a) the Group VI Senior Percentage for such Distribution Date
     times the Stated Principal Balance of such Group VI Mortgage Loan and (b)
     the Group VI Senior Accelerated Distribution Percentage for such
     Distribution Date times the related unscheduled collections (including
     without limitation Insurance Proceeds, Liquidation Proceeds and REO
     Proceeds) to the extent applied by the related Servicer or the Master
     Servicer as recoveries of principal of the related Mortgage Loan pursuant
     to the related Servicing Agreement or this Agreement;

               (C) the Group VI Senior Accelerated Distribution Percentage for
     such Distribution Date times the aggregate of all Principal Prepayments in
     Full and

                                      -32-

<PAGE>

     Curtailments received in the related Prepayment Period with respect to the
     Group VI Mortgage Loans;

               (D) any amounts described in clauses (A), (B), (C), (D) or (E) of
     this definition, as determined for any previous Distribution Date, which
     remain unpaid after application of amounts previously distributed pursuant
     to this clause (L) to the extent that such amounts are not attributable to
     Realized Losses which have been allocated to the Class M Certificates or
     Class B Certificates;

     Group VI Subordinate Amount: On any date of determination, the excess of
the aggregate Stated Principal Balance of the Group VI Mortgage Loans as of such
date over the aggregate Class Certificate Balances of the Group VI Certificates
then outstanding.

     Highest Priority: As of any date of determination, the Class of Subordinate
Certificates then outstanding with the earliest priority for payments pursuant
to Section 6.01, in the following order: Class M-1, Class M-2, Class M-3, Class
B-1, Class B-2 and Class B-3 Certificates.

     Indemnified Persons: The Trustee, the Master Servicer, the Depositor and
the Securities Administrator and their officers, directors, agents and employees
and, with respect to the Trustee, any separate co-trustee and its officers,
directors, agents and employees.

     Independent: When used with respect to any specified Person, any such
Person who (a) is in fact independent of the Depositor, the Master Servicer and
their respective Affiliates, (b) does not have any direct financial interest in
or any material indirect financial interest in the Depositor or the Master
Servicer or any Affiliate thereof, and (c) is not connected with the Depositor
or the Master Servicer or any Affiliate thereof as an officer, employee,
promoter, underwriter, trustee, partner, director or Person performing similar
functions; provided, however, that a Person shall not fail to be Independent of
the Depositor or the Master Servicer or any Affiliate thereof merely because
such Person is the beneficial owner of 1% or less of any class of securities
issued by the Depositor or the Master Servicer or any Affiliate thereof, as the
case may be.

     Index: The index, if any, specified in a Mortgage Note by reference to
which the related Mortgage Interest Rate will be adjusted from time to time.

     Individual Certificate: Any Private Certificate registered in the name of
the Holder other than the Depository or its nominee.

     Initial Certification: The certification substantially in the form of
Exhibit One to the Custodial Agreement.

     Initial Class Certificate Balance: With respect to any Regular Certificate,
the amount designated "Initial Class Certificate Balance" on the face thereof.

     Initial Optional Termination Date: The first Distribution Date following
the date on which the aggregate Stated Principal Balance of the Mortgage Loans
is less than 5% of the aggregate Stated Principal Balance of the Mortgage Loans
as of the Cut-off Date.

                                      -33-

<PAGE>

     Initial Subordinate Class Percentage: With respect to each Class of
Subordinate Certificates, an amount which is equal to the initial aggregate
Class Certificate Balance of such Class of Subordinate Certificates divided by
the aggregate Stated Principal Balance of all the Mortgage Loans as of the
Cut-off Date as follows:

          Class M-1: 1.95%

          Class M-2: 1.20%

          Class M-3: 0.80%

          Class B-1: 0.60%

          Class B-2: 0.40%

          Class B-3: 0.30%

     Insurance Policy: With respect to any Mortgage Loan, any standard hazard
insurance policy, flood insurance policy or title insurance policy.

     Insurance Proceeds: Amounts paid by the insurer under any Insurance Policy
covering any Mortgage Loan or Mortgaged Property other than amounts required to
be paid over to the Mortgagor pursuant to law or the related Mortgage Note or
Security Instrument and other than amounts used to repair or restore the
Mortgaged Property or to reimburse insured expenses.

     Interest Accrual Period: With respect to each Distribution Date, for each
Class of Certificates, the calendar month preceding the month in which such
Distribution Date occurs.

     Interest Adjustment Date: With respect to a Mortgage Loan, the date, if
any, specified in the related Mortgage Note on which the Mortgage Interest Rate
is subject to adjustment.

     Investor Representation Letter: As defined in Section 5.02(b).

     Issuing Entity: Merrill Lynch Mortgage Investors Trust, Series 2006-A3.

     Latest Possible Maturity Date: The Distribution Date in May 2036.

     Liquidated Mortgage Loan: Any defaulted Mortgage Loan (including any REO
Property) as to which the related Servicer has determined that all amounts it
expects to recover from or on account of such Mortgage Loan have been recovered.

     Liquidation Date: With respect to any Liquidated Mortgage Loan, the date on
which the related Servicer has certified that such Mortgage Loan has become a
Liquidated Mortgage Loan.

     Liquidation Expenses: With respect to a Mortgage Loan in liquidation,
unreimbursed expenses paid or incurred by or for the account of the Master
Servicer or the related Servicer in connection with the liquidation of such
Mortgage Loan and the related Mortgaged Property, such expenses including (a)
property protection expenses, (b) property sales expenses, (c) foreclosure and
sale costs, including court costs and reasonable attorneys' fees, and (d)
similar expenses reasonably paid or incurred in connection with liquidation.

     Liquidation Proceeds: With respect to any Mortgage Loan, cash received in
connection with the liquidation of a defaulted Mortgage Loan, whether through
trustee's sale, foreclosure

                                      -34-

<PAGE>

sale or otherwise, and amounts received through Insurance Proceeds and
condemnation proceeds.

     Loan-to-Value Ratio: With respect to any Mortgage Loan, the fraction,
expressed as a percentage, the numerator of which is the original principal
balance of the related Mortgage Loan and the denominator of which is the
Original Value of the related Mortgaged Property.

     Loan Group: Loan Group I, Loan Group II, Loan Group III, Loan Group IV,
Loan Group V or Loan Group VI, as applicable.

     Loan Group I: The group of Mortgage Loans designated as belonging to Loan
Group I on the Mortgage Loan Schedule.

     Loan Group I Net WAC: The weighted average of the Net Mortgage Rates on the
Group I Mortgage Loans weighted on the basis of the respective Stated Principal
Balance of each such Mortgage Loan as of the beginning of the Due Period
immediately preceding such Distribution Date.

     Loan Group II: The group of Mortgage Loans designated as belonging to Loan
Group II on the Mortgage Loan Schedule.

     Loan Group II Net WAC: The weighted average of the Net Mortgage Rates on
the Group II Mortgage Loans weighted on the basis of the respective Stated
Principal Balance of each such Mortgage Loan as of the beginning of the Due
Period immediately preceding such Distribution Date.

     Loan Group III: The group of Mortgage Loans designated as belonging to Loan
Group III on the Mortgage Loan Schedule.

     Loan Group III Net WAC: The weighted average of the Net Mortgage Rates on
the Group III Mortgage Loans weighted on the basis of the respective Stated
Principal Balance of each such Mortgage Loan as of the beginning of the Due
Period immediately preceding such Distribution Date.

     Loan Group IV: The group of Mortgage Loans designated as belonging to Loan
Group IV on the Mortgage Loan Schedule.

     Loan Group IV Net WAC: The weighted average of the Net Mortgage Rates on
the Group IV Mortgage Loans weighted on the basis of the respective Stated
Principal Balance of each such Mortgage Loan as of the beginning of the Due
Period immediately preceding such Distribution Date.

     Loan Group V: The group of Mortgage Loans designated as belonging to Loan
Group V on the Mortgage Loan Schedule.

     Loan Group V Net WAC: The weighted average of the Net Mortgage Rates on the
Group V Mortgage Loans weighted on the basis of the respective Stated Principal
Balance of

                                      -35-

<PAGE>

each such Mortgage Loan as of the beginning of the Due Period immediately
preceding such Distribution Date.

     Loan Group VI: The group of Mortgage Loans designated as belonging to Loan
Group VI on the Mortgage Loan Schedule.

     Loan Group VI Net WAC: The weighted average of the Net Mortgage Rates on
the Group VI Mortgage Loans weighted on the basis of the respective Stated
Principal Balance of each such Mortgage Loan as of the beginning of the Due
Period immediately preceding such Distribution Date.

     Lower Priority: As of any date of determination and with respect to any
Class of Subordinate Certificates, any other Class of Subordinate Certificates
then outstanding with a later priority for payments pursuant to Section 6.01.

     Lower Tier Regular Interests: Any of the REMIC 1 Regular Interests.

     Lower Tier REMIC Interests: Any of the REMIC 1 Interests.

     Lowest Priority: As of any date of determination, the Class of Subordinate
Certificates then outstanding with the latest priority for payments pursuant to
Section 6.01, in the following order: Class B-3, Class B-2, Class B-1, Class
M-3, Class M-2 and Class M-1 Certificates.

     Lost Notes: The original Mortgage Notes that have been lost, as indicated
on the Mortgage Loan Schedule.

     Majority Certificateholders: The Holders of Certificates evidencing at
least 51% of the Voting Rights.

     Master Servicer: Wells Fargo Bank, N.A. including any successors in
interest who meet the qualifications of the Servicing Agreements and this
Agreement, and any successor master servicer appointed hereunder.

     Master Servicer Collection Account: The trust account or accounts created
and maintained pursuant to Section 4.02, which shall be denominated "Wells Fargo
Bank, National Association as Master Servicer for HSBC Bank USA, National
Association, as Trustee f/b/o holders of Merrill Lynch Mortgage Investors, Inc.,
Mortgage Pass-Through Certificates, MLMI Series 2006-A3 - Master Servicer
Collection Account." The Master Servicer Collection Account shall be an Eligible
Account.

     Master Servicing Compensation: The meaning specified in Section 3.14.

     Maximum Lifetime Mortgage Rate: The maximum level to which a Mortgage
Interest Rate can adjust in accordance with its terms, regardless of changes in
the applicable Index.

     Minimum Lifetime Mortgage Rate: The minimum level to which a Mortgage
Interest Rate can adjust in accordance with its terms, regardless of changes in
the applicable Index.

                                      -36-

<PAGE>

     MLBUSA: Merrill Lynch Bank, USA.

     MLML: Merrill Lynch Mortgage Lending, Inc., a Delaware corporation, or any
successor in interest.

     Monthly Advance: An advance of principal or interest required to be made by
the applicable Servicer pursuant to the related Servicing Agreement or the
Master Servicer pursuant to Section 6.05.

     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; (b) without giving effect to any extension granted or agreed to by the
related Servicer pursuant to related Servicing Agreement; and (c) on the
assumption that all other amounts, if any, due under such Mortgage Loan are paid
when due.

     Monthly Principal: The principal portion of any Monthly Payment.

     Monthly Statement: The statement distributed to Certificateholders pursuant
to Section 6.04.

     Moody's: Moody's Investors Service, Inc. or its successor in interest.

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

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

     Mortgage Interest Rate: The annual rate at which interest accrues from time
to time on any Mortgage Loan pursuant to the related Mortgage Note, which rate
is equal to the "Mortgage Interest Rate" set forth with respect thereto on the
Mortgage Loan Schedule.

     Mortgage Loan: A mortgage loan transferred and assigned to the Trustee
pursuant to Section 2.01 or Section 2.04 and held as a part of the Trust Fund,
as identified in the Mortgage Loan Schedule, including a mortgage loan the
property securing which has become an REO Property.

     Mortgage Loan Purchase Agreement: The Mortgage Loan Purchase Agreement
dated as of May 31, 2006, between the Seller and the Depositor, as purchaser,
and all amendments thereof and supplements thereto, attached hereto as Exhibit
J.

     Mortgage Loan Schedule: The schedule, attached hereto as Exhibit B with
respect to the Mortgage Loans and as amended from time to time to reflect the
repurchase or substitution of Mortgage Loans pursuant to this Agreement.

                                      -37-

<PAGE>

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

     Mortgage Pool: The pool of Mortgage Loans, identified on Exhibit B from
time to time, and any REO Properties acquired in respect thereof.

     Mortgaged Property: Land and improvements securing the indebtedness of a
Mortgagor under the related Mortgage Loan or, in the case of REO Property, such
REO Property.

     Mortgagor: The obligor on a Mortgage Note.

     National City: National City Mortgage Co., or any successor thereto.

     National City Assignment Agreement: The Assignment, Assumption and
Recognition Agreement, dated as of May 1, 2006, among National City, the
Depositor and the Seller pursuant to which the National City Servicing Agreement
and the rights of the Seller thereunder (other than the rights to enforce the
representations and warranties with respect to the National City Loans) were
assigned to the Depositor for the benefit of the Certificateholders.

     National City Loans: The Mortgage Loans serviced by National City pursuant
to the National City Servicing Agreement.

     National City Servicing Agreement: The Mortgage Servicing Purchase and Sale
Agreement dated as of May 1, 2004, between Merrill Lynch Bank, USA and National
City, as amended by Amendment Number One, dated as of March 22, 2006.

     Net Liquidation Proceeds: As to any Liquidated Mortgage Loan, Liquidation
Proceeds net of (i) Liquidation Expenses which are payable therefrom by the
related Servicer or the Master Servicer in accordance with the related Servicing
Agreement or this Agreement and (ii) unreimbursed advances by the related
Servicer or the Master Servicer and Monthly Advances.

     Net Mortgage Rate: With respect to each Mortgage Loan, the Mortgage
Interest Rate in effect from time to time less the Servicing Fee Rate (expressed
as a per annum rate).

     Net WAC: The weighted average of the Net Mortgage Rates on the Mortgage
Loans weighted on the basis of the respective Stated Principal Balance of each
such Mortgage Loan as of the beginning of the Due Period immediately preceding
such Distribution Date.

     Nonrecoverable Advance: With respect to any Mortgage Loan any advance or
Monthly Advance (i) which was previously made or is proposed to be made by the
applicable Servicer, or the Master Servicer as successor Servicer, or the
Trustee as successor Master Servicer and (ii) which, in the good faith judgment
of the Master Servicer, the Trustee or applicable Servicer, will not or, in the
case of a proposed advance or Monthly Advance, would not, be ultimately
recoverable by the Master Servicer, the Trustee (as successor Master Servicer)
or applicable Servicer from Liquidation Proceeds, Insurance Proceeds or future
payments on the Mortgage Loan for which such advance or Monthly Advance was
made.

     Offered Certificate: Any Senior Certificate or Offered Subordinate
Certificate.

                                      -38-

<PAGE>

     Offered Subordinate Certificates: The Class M-l, Class M-2 and Class M-3
Certificates.

     Officer's Certificate: A certificate signed by the Chairman of the Board,
the Vice Chairman of the Board, the President or a Vice President or Assistant
Vice President or other authorized officer of the Master Servicer or the
Depositor, as applicable, and delivered to the Trustee, as required by this
Agreement.

     Opinion of Counsel: A written opinion of counsel who is or are acceptable
to the Trustee and who, unless required to be Independent (an "Opinion of
Independent Counsel"), may be internal counsel for the Master Servicer or the
Depositor.

     Optional Termination: The termination of the Trust Fund hereunder pursuant
to Section 10.01(a) hereof.

     Optional Termination Amount: The amount received by the Securities
Administrator in connection with any purchase of all of the Mortgage Loans and
REO Properties pursuant to Section 10.01(b) hereof.

     Optional Termination Price: On any date after the Initial Optional
Termination Date, an amount equal to the sum of (A) the aggregate Stated
Principal Balance of each Mortgage Loan (other than any Mortgage Loan that has
become an REO Property) as of the Distribution Date on which the proceeds of the
Optional Termination are distributed to the Certificateholders, plus accrued
interest thereon at the applicable Mortgage Rate as of the Due Date preceding
the Distribution Date on which the proceeds of the Optional Termination are
distributed to Certificateholders and the fair market value of any REO Property,
plus accrued interest thereon as of the Distribution Date on which the proceeds
of the Optional Termination are distributed to Certificateholders, (B) any
unreimbursed out-of-pocket costs and expenses owed to the Master Servicer, the
Trustee or the Securities Administrator (including any amounts incurred by the
Securities Administrator in connection with conducting the Auction), a Servicer
or the Master Servicer and any unpaid or unreimbursed Servicing Fees, Monthly
Advances and Servicing Advances, (C) any unreimbursed costs, penalties and/or
damages incurred by the Trust Fund in connection with any violation relating to
any of the Mortgage Loans of any predatory or abusive lending law and (D) in the
event an Auction has been conducted, all reasonable fees and expenses incurred
by the Securities Administrator to conduct the Auction.

     Original Subordinate Principal Balance: The sum of the aggregate Class
Certificate Balances of each Class of Subordinate Certificates as of the Closing
Date.

     Original Value: The lesser of (i) the Appraised Value or (ii) the sales
price of a Mortgaged Property at the time of origination of a Mortgage Loan,
except in instances where either clauses (i) or (ii) is unavailable, the other
may be used to determine the Original Value, or if both clauses (i) and (ii) are
unavailable, Original Value may be determined from other sources reasonably
acceptable to the Depositor.

     Outstanding Mortgage Loan: With respect to any Due Date, a Mortgage Loan
which, prior to such Due Date, was not the subject of a Principal Prepayment in
Full, did not become a Liquidated Mortgage Loan and was not purchased or
replaced.

                                      -39-

<PAGE>

     Outstanding Principal Balance: As of the time of any determination, the
principal balance of a Mortgage Loan remaining to be paid by the Mortgagor, or,
in the case of an REO Property, the principal balance of the related Mortgage
Loan remaining to be paid by the Mortgagor at the time such property was
acquired by the Trust Fund less any Net Liquidation Proceeds with respect
thereto to the extent applied to principal.

     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.

     Pass-Through Rate: With respect to the Certificates and any Distribution
Date, the following:

               (i) For the Class I-A Certificates and the Class A-R Certificate
          on each Distribution Date, a per annum rate equal to the Loan Group I
          Net WAC for such Distribution Date.

               (ii) For the Class II-A-1 Certificates and the Class II-A-2
          Certificates on each Distribution Date, a per annum rate equal to the
          Loan Group II Net WAC for such Distribution Date.

               (iii) For the Class III-A-1 Certificates and the Class III-A-2
          Certificates on each Distribution Date, a per annum rate equal to the
          Loan Group III Net WAC for such Distribution Date.

               (iv) For the Class IV-A-1 Certificates and the Class IV-A-2
          Certificates on each Distribution Date, a per annum rate equal to the
          Loan Group IV Net WAC for such Distribution Date.

               (v) For the Class V-A-1 Certificates and the Class V-A-2
          Certificates on each Distribution Date, a per annum rate equal to the
          Loan Group V Net WAC for such Distribution Date.

               (vi) For the Class VI-A-1 Certificates and the Class VI-A-2
          Certificates on each Distribution Date, a per annum rate equal to the
          Loan Group VI Net WAC for such Distribution Date.

               (vii) For each class of Class M Certificates and Class B
          Certificates on each Distribution Date a per annum rate equal to the
          Subordinate Net WAC.

     Paying Agent: The Securities Administrator or any successor Paying Agent
appointed by the Securities Administrator.

     Percentage Interest: With respect to any Certificate (other than the Class
A-R Certificate), a fraction, expressed as a percentage, the numerator of which
is the Initial Class Certificate Balance represented by such Certificate and the
denominator of which is the Initial Class Certificate Balance of the related
Class. With respect to the Class A-R Certificate, the

                                      -40-

<PAGE>

Percentage Interest evidenced thereby shall be as specified on the face thereof,
or otherwise, be equal to 100%.

     Periodic Rate Cap: With respect to each Mortgage Loan, the maximum
adjustment that can be made to the Mortgage Interest Rate on each Interest
Adjustment Date in accordance with its terms, regardless of changes in the
applicable Index.

     Permitted Investments: Any one or more of the following obligations or
securities held in the name of the Trustee for the benefit of the
Certificateholders (provided that such obligation or security must be a
"permitted investment" within the meaning of such term as provided for in
Section 860G(a)(5) of the Code):

               (v) direct obligations of, and obligations the timely payment of
          which are fully guaranteed by the United States of America or any
          agency or instrumentality of the United States of America the
          obligations of which are backed by the full faith and credit of the
          United States of America;

               (vi) (a) demand or time deposits, federal funds or bankers'
          acceptances issued by any depository institution or trust company
          incorporated under the laws of the United States of America or any
          state thereof (including the Trustee or the Master Servicer or its
          Affiliates acting in its commercial banking capacity) and subject to
          supervision and examination by federal and/or state banking
          authorities, provided that the commercial paper and/or the short-term
          debt rating and/or the long-term unsecured debt obligations of such
          depository institution or trust company at the time of such investment
          or contractual commitment providing for such investment have the
          Applicable Credit Rating or better from each Rating Agency and (b) any
          other demand or time deposit or certificate of deposit that is fully
          insured by the Federal Deposit Insurance Corporation;

               (vii) repurchase obligations with respect to (a) any security
          described in clause (i) above or (b) any other security issued or
          guaranteed by an agency or instrumentality of the United States of
          America, the obligations of which are backed by the full faith and
          credit of the United States of America, in either case entered into
          with a depository institution or trust company (acting as principal)
          described in clause (ii)(a) above where the Trustee holds the security
          therefor;

               (viii) securities bearing interest or sold at a discount issued
          by any corporation (including the Trustee or the Master Servicer or
          its Affiliates) incorporated under the laws of the United States of
          America or any state thereof that have the Applicable Credit Rating or
          better from each Rating Agency at the time of such investment or
          contractual commitment providing for such investment; provided,
          however, that securities issued by any particular corporation will not
          be Permitted Investments to the extent that investments therein will
          cause the then outstanding principal amount of securities issued by
          such corporation and held as part of the Issuing Entity to exceed 10%
          of the aggregate Outstanding Principal Balances of all the Mortgage
          Loans and Permitted Investments held as part of the Issuing Entity;

                                      -41-

<PAGE>

               (ix) commercial paper (including both non-interest-bearing
          discount obligations and interest-bearing obligations payable on
          demand or on a specified date not more than one year after the date of
          issuance thereof) having the Applicable Credit Rating or better from
          each Rating Agency at the time of such investment;

               (x) a Reinvestment Agreement issued by any bank, insurance
          company or other corporation or entity;

               (xi) any other demand, money market or time deposit, obligation,
          security or investment as may be acceptable to either Rating Agency as
          evidenced in writing by each Rating Agency to the Trustee or Master
          Servicer;

               (xii) any money market or common trust fund having the Applicable
          Credit Rating or better from each Rating Agency (if such fund is rated
          by each Rating Agency), including any such fund for which the Trustee
          or Master Servicer or any affiliate of the Trustee or Master Servicer
          acts as a manager or an advisor; provided, however, that no instrument
          or security shall be a Permitted Investment if such instrument or
          security evidences a right to receive only interest payments with
          respect to the obligations underlying such instrument or if such
          security provides for payment of both principal and interest with a
          yield to maturity in excess of 120% of the yield to maturity at par or
          if such instrument or security is purchased at a price greater than
          par; and

               (xiii) units of a taxable money-market portfolio having the
          highest rating assigned by each Rating Agency (except if S&P is a
          Rating Agency, "AAAm" or "AAAM-G" by S&P) and restricted to
          obligations issued or guaranteed by the United States of America or
          entities whose obligations are backed by the full faith and credit of
          the United States of America and repurchase agreements collateralized
          by such obligations.

     Permitted Transferee: Any Person other than a Disqualified Organization or
an "electing large partnership" (as defined by Section 775 of the Code).

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

     Physical Certificate: The Residual Certificate.

     Prepayment Assumption: A rate or rates of prepayment, as described in the
Prospectus Supplement related to the Offered Certificates.

     Prepayment Distribution Trigger: With respect to any Distribution Date and
any Class of Subordinate Certificates (other than the Class M-1 Certificates), a
test that shall be satisfied if the fraction (expressed as a percentage) equal
to the sum of the Class Certificate Balances of such Class and each Class of
Subordinate Certificates with a Lower Priority than such Class immediately prior
to such Distribution Date divided by the aggregate Stated Principal Balance of
all of the Mortgage Loans (or related REO Properties) immediately prior to such
Distribution

                                      -42-

<PAGE>

Date is greater than or equal to the sum of the related Initial Subordinate
Class Percentages of such Classes of Subordinate Certificates.

     Prepayment Interest Shortfall: As to any Distribution Date and any Mortgage
Loan (other than a Mortgage Loan relating to an REO Property) that was the
subject of (a) a Principal Prepayment in Full during the related Prepayment
Period, an amount equal to the excess of one month's interest at the Net
Mortgage Rate on the Stated Principal Balance of such Mortgage Loan over the
amount of interest (adjusted to the Net Mortgage Rate) paid by the Mortgagor for
such Prepayment Period to the date of such Principal Prepayment in Full or (b) a
Curtailment during the prior calendar month, an amount equal to one month's
interest at the Net Mortgage Rate on the amount of such Curtailment. The
obligations of the Master Servicer in respect of any Prepayment Interest
Shortfall are set forth in Section 6.06.

     Prepayment Period: With respect to any Mortgage Loan and any Distribution
Date, the calendar month preceding the month in which such Distribution Date
occurs.

     Primary Mortgage Insurance Policy: Any primary mortgage guaranty insurance
policy issued in connection with a Mortgage Loan which provides compensation to
a Mortgage Note holder in the event of default by the obligor under such
Mortgage Note or the related Security Instrument, if any or any replacement
policy therefor through the related Interest Accrual Period for such Class
relating to a Distribution Date.

     Principal Prepayment: Any Principal Prepayment in full or Curtailment or
other recovery of principal on a Mortgage Loan which is received in advance of
its scheduled Due Date to the extent that it is not accompanied by an amount as
to interest representing scheduled interest due on any date or dates in any
month or months subsequent to the month of prepayment, including Insurance
Proceeds and Repurchase Proceeds, but excluding the principal portion of Net
Liquidation Proceeds.

     Principal Prepayment in Full: Any Principal Prepayment made by a Mortgagor
of the entire unpaid principal balance of the Mortgage Loan.

     Private Certificates: Any of the Class B-1, Class B-2, and Class B-3
Certificates.

     Prospectus Supplement: The Prospectus Supplement dated May 26, 2006,
relating to the public offering of the Offered Certificates.

     Protected Account: An account established and maintained for the benefit of
Certificateholders by each Servicer with respect to the related Mortgage Loans
and with respect to REO Property pursuant to the respective Servicing Agreement.
The Protected Account shall be an Eligible Account.

     Purchase Price: With respect to any Mortgage Loan or REO Property to be
purchased pursuant to or as contemplated by Section 2.03 or 10.01, and as
confirmed by an Officers' Certificate from the Master 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),
(ii) accrued interest on such Stated Principal Balance at the applicable
Mortgage Interest Rate in effect from time to time from the Due Date as to which
interest was last covered

                                      -43-

<PAGE>

by a payment by the Mortgagor or an advance by the related Servicer or Master
Servicer, which payment or advance had as of the date of purchase been
distributed to Certificateholders, through the end of the calendar month in
which the purchase is to be effected less any unreimbursed Monthly Advances and
any unpaid Servicing Fees payable to the purchaser of the Mortgage Loan and
(iii) any costs and damages incurred by the Issuing Entity in connection with
any violation by such Mortgage Loan or REO Property of any predatory or
abusive-lending law.

     Qualified Insurer: Any insurance company duly qualified as such under the
laws of the state or states in which the related Mortgaged Property or Mortgaged
Properties is or are located, duly authorized and licensed in such state or
states to transact the type of insurance business in which it is engaged and
approved as an insurer by the Master Servicer, so long as the claims paying
ability of which is acceptable to the Rating Agencies for pass-through
certificates having the same rating as the Certificates rated by the Rating
Agencies as of the Closing Date.

     Rating Agencies: Moody's and S&P.

     Realized Loss: With respect to a Liquidated Mortgage Loan, the amount by
which the remaining unpaid principal balance of the Mortgage Loan exceeds the
amount of Liquidation Proceeds applied to the principal balance of the related
Mortgage Loan. To the extent the Master Servicer receives Subsequent Recoveries
with respect to any Mortgage Loan, the amount of the Realized Loss with respect
to that Mortgage Loan will be reduced to the extent such recoveries are applied
to reduce the Class Certificate Balance of any Class of Certificates on any
Distribution Date.

     Record Date: With respect to each Distribution Date and each class of
Offered Certificates, the close of business on the last Business Day of the
month immediately preceding the month in which the related Distribution Date
occurs.

     Reference Banks: Those banks (i) with an established place of business in
London, England, (ii) not controlling, under the control of or under common
control with the Depositor or the Securities Administrator, (iii) that have been
designated as such by the Securities Administrator and (iv) that are engaged in
transactions in the London interbank market.

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

     Regular Certificates: Any of the Class I-A, Class II-A-1, Class II-A-2,
Class III-A-1, Class III-A-2, Class IV-A-1, Class IV-A-2, Class V-A-1, Class
V-A-2, Class VI-A-1, Class VI-A-2, Class M-1, Class M-2, Class M-3, Class B-1,
Class B-2 or Class B-3 Certificates.

     Regulation AB: Subpart 22.1100 - Asset Backed Securities (Regulation AB),
17 C.F.R. Sections 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.

                                      -44-
<PAGE>

     Reinvestment Agreements: One or more reinvestment agreements, acceptable to
each of the Rating Agencies, from a bank, insurance company or other corporation
or entity (including the Trustee).

     Related Class of Upper Tier REMIC Interest: With respect to any Class of
Certificates, the interest in the Upper Tier REMIC appearing opposite such Class
in the Preliminary Statement hereto.

     Relevant Servicing Criteria: The Servicing Criteria applicable to the
various parties, as set forth on Exhibit K 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, the Custodian or a
Servicer, the term "Relevant Servicing Criteria" may refer to one or more
discrete functions specified in the Relevant Servicing Criteria applicable to
such parties.

     Relief Act: The Servicemembers Civil Relief Act, as amended.

     Relief Act Mortgage Loan: Any Mortgage Loan as to which the Monthly Payment
thereof has been reduced due to the application of the Relief Act.

     REMIC: Each pool of assets in the Trust Fund designated as a REMIC as
described in the Preliminary Statement.

     REMIC Interests: Any regular or residual interest in any of REMIC 1 or the
Upper Tier REMIC, as described in the Preliminary Statement.

     REMIC Opinion: An Opinion of Counsel to the effect that a contemplated
action will neither adversely affect the status as a REMIC of any REMIC created
hereunder nor subject any such REMIC to any tax under the REMIC Provisions.

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

     REMIC 1: As described in the Preliminary Statement.

     REMIC 1 Interest: Each class of interest in REMIC 1 as described in the
Preliminary Statement.

     REMIC 1 Regular Interest: Each of the REMIC 1 Interests other than the
Class LT1-R Interest.

     REMIC 1 Subordinate Balance Ratio: The ratio among the uncertificated
principal balances of each of the REMIC 1 Interests ending with the designation
"A" that is equal to the ratio among, with respect to each such REMIC 1
Interest, the excess of (x) the aggregate Stated

                                      -45-

<PAGE>

Principal Balance of the Mortgage Loans in the related Loan Group over (y) the
aggregate Class Certificate Balance of the Certificates in the Certificate Group
related to such Loan Group.

     REO Property: A Mortgaged Property acquired by the Servicer or Master
Servicer on behalf of the Trust Fund through foreclosure or deed-in-lieu of
foreclosure, as described in Section 3.15 in connection with a defaulted
Mortgage Loan.

     Reportable Event: As defined in Section 3.18(a).

     Reporting Servicer: As defined in Section 3.18(h).

     Repurchase Proceeds: The Repurchase Price in connection with any repurchase
of a Mortgage Loan by the Seller and any cash deposit in connection with the
substitution of a Mortgage Loan.

     Request for Release: A request for release in the form attached hereto as
Exhibit D.

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

     Reserve Account: The separate Eligible Account created and maintained by
the Securities Administrator pursuant to Section 4.06 in the name of the Trustee
for the benefit of the Trust Fund and designated "Wells Fargo Bank, N.A., as
securities administrator, in trust for registered holders of the Merrill Lynch
Mortgage Investors, Inc., Mortgage Pass-Through Certificates, Series 2006-A3."
Funds in the Reserve Account shall be held in trust for the Trust Fund for the
uses and purposes set forth in this Agreement.

     Residual Certificate: The Class A-R Certificate.

     Residual Interest: The Residual Certificate, other than the portion thereof
representing the right to payments in respect of the Class LT1-R Interest.

     Responsible Officer: Any officer assigned to the Corporate Trust Office (or
any successor thereto), including any Vice President, Assistant Vice President,
Trust Officer, any Assistant Secretary, any trust officer or any other officer
of the Trustee or Securities Administrator customarily performing functions
similar to those performed by any of the above designated officers and having
direct responsibility for the administration of this Agreement, and any other
officer of the Trustee or Securities Administrator to whom a matter arising
hereunder may be referred because of such officers familiarity with the subject
matter thereof.

     Rule 144A Letter: The certificate to be furnished by each purchaser of a
Private Certificate (which is also a Physical Certificate) which is a Qualified
Institutional Buyer as defined under Rule 144A promulgated under the Securities
Act, substantially in the form set forth as Exhibit F-3 hereto.

                                      -46-

<PAGE>

     Sarbanes-Oxley Act: 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, 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 is amended,
(b) the Rules referred to in clause (ii) are modified or superseded 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, 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 and the Depositor following a
negotiation in good faith to determine how to comply with any such new
requirements.

     S&P: Standard and Poor's, a division of The McGraw-Hill Companies, Inc. or
its successor in interest.

     Scheduled Payment: With respect to any Mortgage Loan and any month, the
scheduled payment or payments of principal and interest due during such month on
such Mortgage Loan which either is payable by a Mortgagor in such month under
the related Mortgage Note or, in the case of REO Property, would otherwise have
been payable under the related Mortgage Note.

     Scheduled Principal: The principal portion of any Scheduled Payment.

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

     Securities Administrator: Wells Fargo Bank, N.A., or any successor in
interest, or any successor securities administrator appointed as herein
provided.

     Security Agreement: With respect to a Cooperative Loan, the agreement
creating a security interest in favor of the originator in the related
Cooperative Stock.

     Security Instrument: A written instrument creating a valid first lien on a
Mortgaged Property securing a Mortgage Note, which may be any applicable form of
mortgage, deed of trust, deed to secure debt or security deed, including any
riders or addenda thereto.

     Seller: Merrill Lynch Mortgage Lending, Inc., a Delaware corporation, or
any successor in interest.

     Senior Accelerated Distribution Percentage: The Group I, Group II, Group
III, Group IV, Group V or Group VI Senior Accelerated Distribution Percentage,
as applicable.

     Senior Certificates: The Class I-A Certificates, Class II-A-1 Certificates,
Class II-A-2 Certificates, Class III-A-1 Certificates, Class III-A-2
Certificates, Class IV-A-1 Certificates,

                                      -47-

<PAGE>

Class IV-A-2 Certificates, Class V-A-1 Certificates, Class V-A-2 Certificates,
Class VI-A-1 Certificates, Class VI-A-2 Certificates and Class A-R Certificates.

     Senior Percentage: The Group I Senior Percentage, Group II Senior
Percentage, Group III Senior Percentage, Group IV Senior Percentage, Group V
Senior Percentage or Group VI Senior Percentage, as applicable.

     Senior Principal Distribution Amount: The Group I Senior Principal
Distribution Amount, Group II Senior Principal Distribution Amount, Group III
Senior Principal Distribution Amount, Group IV Senior Principal Distribution
Amount, Group V Senior Principal Distribution Amount or Group VI Senior
Principal Distribution Amount, as applicable.

     Servicer: With respect to each Mortgage Loan, National City, Countrywide or
Wells Fargo, as applicable and as specified on the Mortgage Loan Schedule.

     Servicer Remittance Date: With respect to each Mortgage Loan, the date set
forth in the related Servicing Agreement.

     Servicing Advances: With respect to any Mortgage Loan, all customary,
reasonable and necessary "out-of-pocket" costs and expenses incurred by the
Servicer in the performance of its servicing obligations, including, but not
limited to, the cost of (i) preservation, restoration, protection and repair of
a Mortgaged Property or Cooperative Unit, as applicable, (ii) any enforcement or
judicial proceedings with respect to a Mortgage Loan, including foreclosure
actions and (iii) the management and liquidation of REO Property.

     Servicing Agreements: The National City Servicing Agreement, Countrywide
Servicing Agreement and Wells Fargo Servicing Agreement.

     Servicing Criteria: The "servicing criteria" set forth in Item 1122(d) of
Regulation AB, as such may be amended from time to time.

     Servicing Fee: As to any Mortgage Loan and Distribution Date, an amount
equal to the product of (i) the Stated Principal Balance of such Mortgage Loan
as of the Due Date in the preceding calendar month and (ii) the applicable
Servicing Fee Rate. Such fee shall be payable monthly, computed on the basis of
the same principal amount and period respectively which any related interest
payment on a Mortgage Loan is computed. If the Index and/or Gross Margin are
adjusted as provided in the related Mortgage Note, the Servicing Fee shall be
the rate per annum in effect immediately prior to such adjustment.

     Servicing Fee Rate: As to any Mortgage Loan, a per annum rate as set forth
in the Mortgage Loan Schedule.

     Servicing Function Participant: Any Sub-Servicer, Subcontractor or any
other Person, other than a Servicer, the Custodian, the Master Servicer, the
Paying Agent, the Securities Administrator and the Trustee, that is
participating in the servicing function within the meaning of Regulation AB.

                                      -48-

<PAGE>

     Servicing Officer: Any officer of the Master Servicer involved in, or
responsible for, the administration and servicing of the Mortgage Loans whose
names and specimen signatures appear on a list of servicing officers furnished
to the Trustee by the Master Servicer, as such list may be amended from time to
time.

     Startup Day: The Closing Date.

     Stated Principal Balance: With respect to any Mortgage Loan and Due Date,
the unpaid principal balance of such Mortgage Loan as of such Due Date, as
specified in the amortization schedule at the time relating thereto (before any
adjustment to such amortization schedule by reason of any moratorium or similar
waiver or grace period), after giving effect to any previous partial prepayments
and Liquidation Proceeds received and to the payment of principal due on such
Due date and irrespective of any delinquency in payment by the related
Mortgagor.

     Subcontractor: 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 any Servicer (or a
Sub-Servicer of any Servicer), the Master Servicer, the Trustee, the Custodian
or the Securities Administrator.

     Subordinate Certificates: The Class M-1, Class M-2, Class M-3, Class B-1,
Class B-2 and Class B-3 Certificates.

     Subordinate Net WAC: For any Distribution Date, a per annum rate equal to
the weighted average of the Loan Group I Net WAC, the Loan Group II Net WAC, the
Loan Group III Net WAC, the Loan Group IV Net WAC, the Loan Group V Net WAC and
the Loan Group VI Net WAC, weighted in proportion to the results of subtracting
from the aggregate Stated Principal Balance of the Mortgage Loans of each Loan
Group as of the beginning of the Due Period immediately preceding such
Distribution Date, the aggregate Class Certificate Balance of the Senior
Certificates related to each such Loan Group.

     Subordinate Percentage: For any Distribution Date, the difference between
100% and the Senior Percentage for such date.

     Subordinate Prepayment Percentage: With respect to any Distribution Date
and each Class of Subordinate Certificates, under the applicable circumstances
set forth below, the respective percentages set forth below:

          (xiv) For any Distribution Date prior to the Distribution Date in June
     2013 (unless the Class Certificate Balances of the Senior Certificates have
     been reduced to zero), 0%.

          (xv) For any Distribution Date for which clause (i) does not apply,
     and on which any Class of Subordinate Certificates are outstanding:

               (a) in the case of the Class of Subordinate Certificates then
          outstanding with the Highest Priority and each other Class of
          Subordinate Certificates for which the related Prepayment Distribution
          Trigger has been

                                      -49-

<PAGE>

          satisfied, a fraction, expressed as a percentage, the numerator of
          which is the Class Certificate Balance of such Class immediately prior
          to such date and the denominator of which is the sum of the Class
          Certificate Balances immediately prior to such date of (1) the Class
          of Subordinate Certificates then outstanding with the Highest Priority
          and (2) all other Classes of Subordinate Certificates for which the
          respective Prepayment Distribution Triggers have been satisfied; and

               (b) in the case of each other Class of Subordinate Certificates
          for which the Prepayment Distribution Triggers have not been
          satisfied, 0%; and

          (xvi) Notwithstanding the foregoing, if the application of the
     foregoing percentages on any Distribution Date as provided in Section 6.01
     of this Agreement (determined without regard to the proviso in the
     definition of "Subordinate Principal Distribution Amount") would result in
     a distribution in respect of principal of any Class or Classes of
     Subordinate Certificates in an amount greater than the remaining Class
     Certificate Balance thereof (any such class, a "Maturing Class"), then: (a)
     the Subordinate Prepayment Percentage of each Maturing Class shall be
     reduced to a level that, when applied as described above, would exactly
     reduce the Class Certificate Balance of such Class to zero; (b) the
     Subordinate Prepayment Percentage of each other Class of Subordinate
     Certificates (any such Class, a "Non-Maturing Class") shall be recalculated
     in accordance with the provisions in paragraph (ii) above, as if the Class
     Certificate Balance of each Maturing Class had been reduced to zero (such
     percentage as recalculated, the "Recalculated Percentage"); (c) the total
     amount of the reductions in the Subordinate Prepayment Percentages of the
     Maturing Class or Classes pursuant to clause (a) of this sentence,
     expressed as an aggregate percentage, shall be allocated among the
     Non-Maturing Classes in proportion to their respective Recalculated
     Percentages (the portion of such aggregate reduction so allocated to any
     Non-Maturing Class, the "Adjustment Percentage"); and (d) for purposes of
     such Distribution Date, the Subordinate Prepayment Percentage of each
     Non-Maturing Class shall be equal to the sum of (1) the Subordinate
     Prepayment Percentage thereof, calculated in accordance with the provisions
     in paragraph (ii) above as if the Class Certificate Balance of each
     Maturing Class had not been reduced to zero, plus (2) the related
     Adjustment Percentage.

     Subordinate Principal Distribution Amount: With respect to any Distribution
Date and each Class of Class M Certificates and Class B Certificates, the sum of
the following:

               (i) the product of (x) the related Class M Percentage or Class B
     Percentage for such Class and (y) the aggregate of the following amounts:

                    (1) the principal portion of each Monthly Payment due during
          the related Due Period on each Outstanding Mortgage Loan, whether or
          not received on or prior to the related Determination Date, minus the
          principal portion of any Debt Service Reduction;

                    (2) the Stated Principal Balance of any Mortgage Loan
          repurchased during the related Prepayment Period pursuant to Section
          2.02 or 2.03; and

                                      -50-

<PAGE>

                    (3) the principal portion of all other unscheduled
          collections (other than Principal Prepayments in Full and Curtailments
          and amounts received in connection with the liquidation or other
          disposition of a Mortgage Loan, including without limitation Insurance
          Proceeds, Liquidation Proceeds and REO Proceeds) received during the
          related Prepayment Period to the extent applied by the related
          Servicer as recoveries of principal of the related Mortgage Loan
          pursuant to the related Servicing Agreement;

               (ii) such Class's pro rata share, based on the Class Certificate
     Balance of each Class of Class M Certificates and Class B Certificates then
     outstanding, of, with respect to each Mortgage Loan for which a liquidation
     or other disposition occurred during the related Prepayment Period and did
     not result in any Extraordinary Losses, an amount equal to the related
     unscheduled collections (including without limitation Insurance Proceeds,
     Liquidation Proceeds and REO Proceeds) to the extent applied by the related
     Servicer as recoveries of principal of the related Mortgage Loan pursuant
     to the related Servicing Agreement, to the extent such collections are not
     otherwise distributed to the Senior Certificates;

               (iii) the product of (x) the related Subordinate Prepayment
     Percentage for such Distribution Date and (y) the aggregate of all
     Principal Prepayments in Full and Curtailments of the Mortgage Loans
     received in the related Prepayment Period, to the extent not payable to the
     Senior Certificates; and

               (iv) any amounts described in clauses (i), (ii) and (iii) as
     determined for any previous Distribution Date, that remain undistributed to
     the extent that such amounts are not attributable to Realized Losses which
     have been allocated to a Class of Subordinate Certificates;

provided, however, that such amount shall in no event exceed the outstanding
Class Certificate Balance of such Class of Certificates immediately prior to
such date.

     Subsequent Recoveries: Any amount recovered by a Servicer or the Master
Servicer (net of reimbursable expenses) with respect to a Liquidated Mortgage
Loan with respect to which a Realized Loss was incurred after the liquidation or
disposition of such Mortgage Loan.

     Sub-Servicer: Any Person that services Mortgage Loans on behalf of a
Servicer, and is responsible for the performance (whether directly or through
sub-servicers or Subcontractors) of servicing functions required to be performed
under this Agreement, any related Servicing Agreement or any sub-servicing
agreement that are identified in Item 1122(d) of Regulation AB.

     Substitute Mortgage Loan: With respect to any Mortgage Loan, which is
tendered to the Trustee pursuant to the related Servicing Agreement, the
Mortgage Loan Purchase Agreement or Section 2.04 of this Agreement, as
applicable, in each case, (i) which has an Outstanding Principal Balance not
greater nor materially less than the Mortgage Loan for which it is to be
substituted; (ii) which has a Mortgage Interest Rate and Net Rate not less than,
and not materially greater than, such Mortgage Loan; (iii) which has a maturity
date not materially earlier or later than such Mortgage Loan and not later than
the latest maturity date of any

                                      -51-

<PAGE>

Mortgage Loan; (iv) which is of the same property type and occupancy type as
such Mortgage Loan; (v) which has a Loan-to-Value Ratio not greater than the
Loan-to-Value Ratio of such Mortgage Loan; (vi) which is current in payment of
principal and interest as of the date of substitution; (vii) as to which the
payment terms do not vary in any material respect from the payment terms of the
Mortgage Loan for which it is to be substituted and (viii) which has a Gross
Margin, Periodic Rate Cap and Maximum Lifetime Mortgage Rate no less than those
of such Mortgage Loan, has the same Index and interval between Interest
Adjustment Dates as such Mortgage Loan, and a Minimum Lifetime Mortgage Rate no
lower than that of such Mortgage Loan.

     Tax Matters Person: The Securities Administrator or any successor thereto
or assignee thereof shall serve as tax administrator hereunder and as agent for
the Tax Matters Person. The Holder of the Residual Certificates shall be the Tax
Matters Person for the related REMIC, as more particularly set forth in Section
9.12 hereof.

     Transfer: Any direct or indirect transfer or sale of any Ownership Interest
in a certificate.

     Transferor Representation Letter: As defined in Section 5.02(b).

     Trustee: HSBC Bank USA, National Association, or its successor in interest,
or any successor trustee appointed as herein provided.

     Trust Fund: The corpus of the Issuing Entity created pursuant to this
Agreement, consisting of (i) the Mortgage Loans, including the right to all
payments of principal and interest received on or with respect to the Mortgage
Loans on and after the Cut-off Date (other than Scheduled Payments due on or
before such date), and all such payments due after such date but received prior
to such date and intended by the related Mortgagors to be applied after such
date; (ii) all of the Depositor's right, title and interest in and to all
amounts from time to time credited to and the proceeds of the Protected
Accounts, the Master Servicer Collection Account and the Distribution Account
established with respect to the Mortgage Loans; (iii) all of the Depositor's
rights under the Mortgage Loan Purchase Agreement, the Assignment Agreements and
the Servicing Agreements; (iv) all of the Depositor's right, title or interest
in REO Property and the proceeds thereof; (v) all of the Depositor's rights
under any Insurance Policies relating to the Mortgage Loans; and (vi) all
proceeds of the conversion, voluntary or involuntary, of any of the foregoing
into cash or other liquid assets, including without limitation, all Insurance
Proceeds, Liquidation Proceeds and condemnation awards and any proceeds of the
foregoing.

     Undercollateralized Amount: On any Distribution Date, the excess of (x) the
aggregate Class Certificate Balance of any Class or Classes of Senior
Certificates related to a Loan Group immediately prior to such Distribution Date
over (y) the aggregate Stated Principal Balance of the Mortgage Loans in its
related Loan Group as of the beginning of the related Due Period.

     Undercollateralized Senior Certificates: As defined in Section 6.01(I).

     Underlying Seller: With respect to each Mortgage Loan, Countrywide,
National City or Wells Fargo, as indicated on the Mortgage Loan Schedule.

                                      -52-

<PAGE>

     Uninsured Cause: Any cause of damage to a Mortgaged Property or related REO
Property such that the complete restoration of such Mortgaged Property or
related REO Property is not fully reimbursable by the hazard insurance policies
required to be maintained pursuant the related Servicing Agreement, without
regard to whether or not such policy is maintained.

     United States Person: A citizen or resident of the United States, a
corporation or partnership (including an entity treated as a corporation or
partnership for federal income tax purposes) created or organized in, or under
the laws of, the United States or any state thereof or the District of Columbia
(except, in the case of a partnership, to the extent provided in regulations),
provided that, for purposes solely of the Class A-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 United
States Persons, or an estate whose income is subject to United States federal
income tax regardless of its source, or a trust if a court within the United
States is able to exercise primary supervision over the administration of the
trust and one or more such United States Persons have the authority to control
all substantial decisions of the trust. To the extent prescribed in regulations
by the Secretary of the Treasury, which have not yet been issued, a trust which
was in existence on August 20, 1996 (other than a trust treated as owned by the
grantor under subpart E of part I of subchapter J of chapter 1 of the Code), and
which was treated as a United States person on August 20, 1996 may elect to
continue to be treated as a United States person notwithstanding the previous
sentence.

     Upper Tier REMIC: As described in the Preliminary Statement.

     Upper Tier REMIC Regular Interest: Each of the Class I-A Certificates,
Class II-A-1 Certificates, Class II-A-2 Certificates, Class III-A-1
Certificates, Class III-A-2 Certificates, Class IV-A-1 Certificates, Class
IV-A-2 Certificates, Class V-A-1 Certificates, Class V-A-2 Certificates, Class
VI-A-1 Certificates, Class VI-A-2 Certificates, Class M-1 Certificates, Class
M-2 Certificates, Class M-3 Certificates, Class B-1 Certificates, Class B-2
Certificates and Class B-3 Certificates.

     Voting Rights: The portion of the voting rights of all of the Certificates
which is allocated to any Certificate. The Voting Rights allocated among Holders
of such Certificates outstanding shall be the fraction, expressed as a
percentage, the numerator of which is the aggregate Class Certificate Balance of
all the Certificates of such Class then outstanding and the denominator of which
is the aggregate Class Certificate Balance of all the Certificates then
outstanding (other than the Class A-R Certificate). 99.00% of all Voting Rights
will be allocated among all holders of the Certificates (other than the Class
A-R Certificate) in proportion to their then outstanding Class Certificate
Balances, and 1.00% of the Voting Rights shall be allocated to the Class A-R
Certificate; provided, however, that any Certificate registered in the name of
the Master Servicer, the Depositor or the Securities Administrator or any of
their respective affiliates shall not be included in the calculation of Voting
Rights.

     Wells Fargo: Wells Fargo Bank, N.A., or any successor thereto.

                                      -53-

<PAGE>

     Wells Fargo Assignment Agreement: The Assignment, Assumption and
Recognition Agreement, dated as of May 1, 2006, among Wells Fargo Bank, N.A.,
the Depositor and the Seller pursuant to which the Wells Fargo Servicing
Agreement and the rights of the Seller thereunder (other than the rights to
enforce the representations and warranties with respect to the Wells Fargo
Mortgage Loans) were assigned to the Depositor for the benefit of the
Certificateholders.

     Wells Fargo Mortgage Loans: The Mortgage Loans serviced by Wells Fargo
pursuant to the Wells Fargo Servicing Agreement.

     Wells Fargo Servicing Agreement: The Seller's Warranties and Servicing
Agreement, dated as of October 1, 2005, among Merrill Lynch Mortgage Lending
Inc. and Wells Fargo Bank, N.A., as amended.

     Section 1.02 Accounting.

     Unless otherwise specified herein, for the purpose of any definition or
calculation, whenever amounts are required to be netted, subtracted or added or
any distributions are taken into account such definition or calculation and any
related definitions or calculations shall be determined without duplication of
such functions.

                                   ARTICLE II
                             CONVEYANCE OF MORTGAGE
                    LOANS; ORIGINAL ISSUANCE OF CERTIFICATES

     Section 2.01 Conveyance of Mortgage Loans to Trustee.

     (a) The Depositor concurrently with the execution and delivery of this
Agreement, sells, transfers and assigns to the Issuing Entity without recourse
all its right, title and interest in and to (i) the Mortgage Loans identified in
the Mortgage Loan Schedule, including all interest and principal due with
respect to the Mortgage Loans after the Cut-off Date, but excluding any payments
of principal and interest due on or prior to the Cut-off Date; (ii) such assets
as shall from time to time be credited or are required by the terms of this
Agreement to be credited to the Master Servicer Collection Account, (iii) such
assets relating to the Mortgage Loans as from time to time may be held by the
Servicers in Protected Accounts, the Master Servicer in the Master Servicer
Collection Account and the Securities Administrator in the Distribution Account
for the benefit of the Trustee on behalf of the Certificateholders, (iv) any REO
Property, (v) the Required Insurance Policies and any amounts paid or payable by
the insurer under any Insurance Policy (to the extent the mortgagee has a claim
thereto), (vi) the Mortgage Loan Purchase Agreement to the extent provided in
Subsection 2.03(a), (vii) the rights with respect to the Servicing Agreements as
assigned to the Depositor on behalf of the Certificateholders by the Assignment
Agreements and (viii) any proceeds of the foregoing. Although it is the intent
of the parties to this Agreement that the conveyance of the Depositor's right,
title and interest in and to the Mortgage Loans and other assets in the Trust
Fund pursuant to this Agreement shall constitute a purchase and sale and not a
loan, in the event that such conveyance is deemed to be a loan, it is the intent
of the parties to this Agreement that the Depositor shall be deemed to have
granted to the Trustee a first priority perfected security interest in all of
the Depositor's right, title

                                      -54-

<PAGE>

and interest in, to and under the Mortgage Loans and other assets in the Trust
Fund, and that this Agreement shall constitute a security agreement under
applicable law.

     (b) In connection with the above transfer and assignment, the Depositor
hereby deposits with the Trustee or the Custodian, as its agent, the following
documents or instruments

(I) with respect to each Mortgage Loan, other than a Cooperative Loan:

          (i) the original Mortgage Note, endorsed in the following form: "Pay
     to the order of HSBC Bank USA, National Association, as Trustee for the
     registered holders of the Merrill Lynch Mortgage Investors, Inc., Mortgage
     Pass-Through Certificates, Series 2006-A3, without recourse," 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 recorded Mortgage or a copy of the Mortgage
     certified by the public recording office in which such Mortgage has been
     recorded;

          (iii) an original Assignment of the Mortgage executed in the following
     form: "HSBC Bank USA, National Association, as Trustee for the registered
     holders of the Merrill Lynch Mortgage Investors, Inc., Mortgage
     Pass-Through Certificates, Series 2006-A3.

          (iv) the original recorded Assignment or Assignments of the Mortgage
     showing a complete chain of assignment from the originator to the Person
     assigning the Mortgage to the Trustee as contemplated by the immediately
     preceding clause (iii), if applicable and only to the extent available to
     the Depositor with evidence of recording thereon;

          (v) the originals of all assumption, modification, consolidation or
     extension agreements, with evidence of recording thereon, if any;

          (vi) the original of any guarantee executed in connection with the
     Mortgage Note;

          (vii) the original mortgagee title insurance policy;

          (viii) the original of any security agreement, chattel mortgage or
     equivalent document executed in connection with the Mortgage; and

          (ix) the original power of attorney, if applicable.

and (II) with respect to each Mortgage Loan that is a Cooperative Loan:

          (x) the original Mortgage Note, endorsed in the following form: "Pay
     to the order of HSBC Bank USA, National Association, as Trustee for the
     registered holders of the Merrill Lynch Mortgage Investors, Inc., Mortgage
     Pass-Through Certificates, Series 2006-A3, without recourse," with all
     prior and intervening endorsements showing a

                                      -55-

<PAGE>

     complete chain of endorsement from the originator to the Person so
     endorsing to the Trustee;

          (xi) the original duly executed assignment of Security Agreement to
     the Trustee;

          (xii) the acknowledgment copy of the original executed Form UCC-1 (or
     certified copy thereof) with respect to the Security Agreement, and any
     required continuation statements;

          (xiii) the acknowledgment copy of the original executed Form UCC-3
     with respect to the Security Agreement, indicating the Trustee as the
     assignee of the secured party;

          (xiv) the stock certificate representing the Cooperative Assets
     allocated to the cooperative unit, with a stock power in blank attached;

          (xv) the original collateral assignment of the proprietary lease by
     Mortgagor to the originator;

          (xvi) a copy of the recognition agreement;

          (xvii) if applicable and to the extent available, the original
     intervening assignments, including warehousing assignments, if any,
     showing, to the extent available, an unbroken chain of the related Mortgage
     Loan to the Trustee, together with a copy of the related Form UCC-3 with
     evidence of filing thereon; and

          (xviii) the originals of each assumption, modification or substitution
     agreement, if any, relating to the Mortgage Loan;

provided, however, that in lieu of the foregoing, the Depositor may deliver the
following documents, under the circumstances set forth below: (w) the Depositor
may deliver a Mortgage Note pursuant to (a)(i) and (b)(i) endorsed in blank,
provided that the endorsement is completed within 60 days of the Closing Date;
(x) in lieu of the original Mortgage, assignments to the Trustee or its
Custodian, as applicable, or intervening assignments thereof which have been
delivered, are being delivered or will, upon receipt of recording information
relating to the Mortgage required to be included thereon, be delivered to
recording offices for recording and have not been returned to the Depositor in
time to permit their delivery as specified above, the Depositor may deliver a
true copy thereof with a certification by the Depositor on the face of such
copy, substantially as follows: "Certified to be a true and correct copy of the
original, which has been transmitted for recording"; and (y) in lieu of the
Mortgage, assignment to the Trustee or intervening assignments thereof, if the
applicable jurisdiction retains the originals of such documents (as evidenced by
a certification from the Depositor or the Master Servicer, to such effect) the
Depositor may deliver photocopies of such documents containing an original
certification by the judicial or other governmental authority of the
jurisdiction where such documents were recorded; and provided, further, however,
that in the case of Mortgage Loans which have been prepaid in full after the
Cut-off Date and prior to the Closing Date, the Depositor, in lieu of delivering
the above documents, may deliver to the Trustee or its Custodian,

                                      -56-

<PAGE>

as applicable, a certification to such effect and shall deposit all amounts paid
in respect of such Mortgage Loans in the Distribution Account on the Closing
Date. The Depositor shall deliver such original documents (including any
original documents as to which certified copies had previously been delivered)
to the Trustee or its Custodian, as applicable, promptly after they are
received. As of the date hereof, recordation of the assignment of the Mortgage
Loans to the Trustee or the Custodian, as applicable, is not required in any
state by either Rating Agency to obtain the initial rating on the Certificates
(upon which statement the Master Servicer, the Trustee and the Custodian may
each conclusively rely).

     If any original Mortgage Note referred to in Section 2.01(b)(I)(i) or
2.01(b)(II)(i) above cannot be located, the obligations of the Depositor to
deliver such documents shall be deemed to be satisfied upon delivery to the
Trustee or its Custodian, as applicable, of a photocopy of such Mortgage Note,
if available, with a lost note affidavit. If any of the original Mortgage Notes
for which a lost note affidavit was delivered to the Trustee or its Custodian,
as applicable, is subsequently located, such original Mortgage Note shall be
delivered to the Trustee or its Custodian, as applicable, within three Business
Days.

     (c) The parties hereto agree that it is not intended that any mortgage loan
be included in the Trust Fund that is, without limitation, a "High Cost Loan" as
defined by the Home Ownership and Equity Protection Act of 1994 or any other
applicable anti-predatory lending laws, including but not limited to (i) a
"High-Cost Home Loan" as defined in the New Jersey Home Ownership Act effective
November 27, 2003, (ii) a "High-Cost Home Loan" as defined in the New Mexico
Home Loan Protection Act effective January 1, 2004, (iii) a "High Cost Home
Mortgage Loan" as defined in the Massachusetts Predatory Home Loan Practices Act
effective November 7, 2004 or (iv) a "High-Cost Home Loan" as defined by the
Indiana High Cost Home Loan Law effective January 1, 2005.

     (d) 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 Mortgage Files, including but not
limited to certain insurance policies and documents contemplated by Section 3.12
of this Agreement, and preparation and delivery of the certifications shall be
performed by the Custodian(s) pursuant to the terms and conditions of the
Custodial Agreement(s).

     Section 2.02 Acceptance of Mortgage Loans by Trustee.

     (a) The Trustee acknowledges the sale, transfer and assignment of the Trust
Fund to it by the Depositor and its receipt thereof, subject to further review
and the exceptions which may be noted pursuant to the procedures described
below, and declares that it, or the Custodian on its behalf, holds the documents
(or certified copies thereof) delivered to it pursuant to Section 2.01, and
declares that it will continue to hold those documents and any amendments,
replacements or supplements thereto and all other assets of the Trust Fund
delivered to it as Trustee in trust for the use and benefit of all present and
future Holders of the Certificates. On or before the Closing Date (or, with
respect to any Substitute Mortgage Loan, within five Business Days after the
receipt by the Trustee or Custodian thereof), the Trustee agrees, for the
benefit of the Certificateholders, to review or cause to be reviewed by the
Custodian on its behalf (under the Custodial Agreement), each Mortgage File
delivered to it and to execute and deliver, or cause

                                      -57-

<PAGE>

to be executed and delivered, to the Depositor on the Closing Date an Initial
Certification. In conducting such review, the Trustee or Custodian will certify
as to each Mortgage Loan listed in the Mortgage Loan Schedule (other than any
Mortgage Loan paid in full or any Mortgage Loan specifically identified in the
exception report annexed thereto as not being covered by such certification),
(i) all documents constituting part of such Mortgage File (other than such
documents described in Section 2.01(b)(I)(iii)) required to be delivered to it
pursuant to this Agreement are in its possession, provided that with respect to
the documents described in Section 2.01(b)(I)(v), (vi), (viii) and (ix) and
2.01(b)(II)(viii) and (ix) to the extent the Trustee or the Custodian on its
behalf has actual knowledge that such documents exist, (ii) such documents have
been reviewed by it and are not torn, mutilated, defaced or otherwise altered
(except if initialed by the obligor) and appear to relate on their face to such
Mortgage Loan, (iii) based on its examination and only as to the foregoing, the
information set forth in the Mortgage Loan Schedule corresponding to the loan
number for the Mortgage Loan, the Mortgagor's name, including the street address
but excluding the zip code, the Mortgage Interest Rate and the original
principal balance of the Mortgage Loan accurately reflects information set forth
in the Mortgage File and (iv) with respect to Mortgage Loans with a Mortgage
Interest Rate subject to adjustment, the Gross Margin, the lifetime cap and the
periodic cap for such Mortgage Loan. In performing any such review, the Trustee,
or the Custodian, as its agent, may conclusively rely on the purported due
execution and genuineness of any such document and on the purported genuineness
of any signature thereon. Notwithstanding anything to the contrary in this
Agreement, it is herein acknowledged that, in conducting such review, the
Trustee or the Custodian on its behalf is under no duty or obligation to
inspect, review or examine any such documents, instruments, certificates or
other papers to determine whether they are genuine, enforceable, or appropriate
for the represented purpose or whether they have actually been recorded or that
they are other than what they purport to be on their face, or to determine
whether any Person executing any documents is authorized to do so or whether any
signature is genuine. If the Trustee or the Custodian, as its agent, finds any
document constituting part of the Mortgage File not to have been executed or
received, or to be unrelated to the Mortgage Loans identified in Exhibit B or to
appear to be defective on its face, the Trustee or the Custodian, as its agent,
shall promptly notify the Seller. In accordance with the Mortgage Loan Purchase
Agreement, the Seller shall correct or cure any such defect within ninety (90)
days from the date of notice from the Trustee or the Custodian, as its agent, of
the defect and if the Seller fails to correct or cure the defect within such
period, and such defect materially and adversely affects the interests of the
Certificateholders in the related Mortgage Loan, the Trustee, shall enforce the
Seller's obligation pursuant to the Mortgage Loan Purchase Agreement, within 90
days from the Trustee's or the Custodian's notification, to purchase such
Mortgage Loan at the Purchase Price; provided that, if such defect would cause
the Mortgage Loan to be other than a "qualified mortgage" as defined in Section
860G(a)(3) of the Code, any such cure or repurchase must occur within 90 days
from the date such breach was discovered; provided, however, that if such defect
relates solely to the inability of the Seller to deliver the original Security
Instrument or intervening assignments thereof, or a certified copy because the
originals of such documents, or a certified copy have not been returned by the
applicable jurisdiction, the Seller shall not be required to purchase such
Mortgage Loan if the Seller delivers such original documents or certified copy
promptly upon receipt, but in no event later than 360 days after the Closing
Date. The foregoing repurchase obligation shall not apply in the event that the
Seller cannot deliver such original or copy of any document submitted for
recording to the appropriate recording

                                      -58-

<PAGE>

office in the applicable jurisdiction because such document has not been
returned by such office; provided that the Seller shall instead deliver a
recording receipt of such recording office or, if such receipt is not available,
a certificate confirming that such documents have been accepted for recording,
and delivery to the Trustee or the Custodian, as its agent, shall be effected by
the Seller within thirty days of its receipt of the original recorded document.

     (b) No later than 180 days after the Closing Date, the Trustee or the
Custodian, as its agent, will review, for the benefit of the Certificateholders,
the Mortgage Files delivered to it and will execute and deliver or cause to be
executed and delivered to the Depositor a Final Certification. In conducting
such review, the Trustee or the Custodian, as its agent, will certify as to each
Mortgage Loan listed in the Mortgage Loan Schedule (other than any Mortgage Loan
paid in full or any Mortgage Loan specifically identified in the exception
report annexed thereto as not being covered by such certification), that (i) all
documents constituting part of such Mortgage File (other than such documents
described in Section 2.01(b)(I)(v) and (ix)) required to be delivered to it
pursuant to this Agreement are in its possession, provided that with respect to
the documents described in Section 2.01(b)(I)(v), (vi), (viii) and (ix) and
2.01(b)(II)(viii) and (ix) to the extent the Trustee or the Custodian on its
behalf has actual knowledge that such documents exist, (ii) such documents have
been reviewed by it and are not torn, mutilated, defaced or otherwise altered
(except if initialed by the obligor) and appear regular on their face and relate
to such Mortgage Loan, (iii) based on its examination and only as to the
foregoing, the information set forth in the Mortgage Loan Schedule corresponding
to the loan number for the Mortgage Loan, the Mortgagor's name, including the
street address but excluding the zip code, the Mortgage Interest Rate and the
original principal balance of the Mortgage Loan accurately reflects information
set forth in the Mortgage File. In performing any such review, the Trustee, or
the Custodian, as its agent, may conclusively rely on the purported due
execution and genuineness of any such document and on the purported genuineness
of any signature thereon. Notwithstanding anything to the contrary in this
Agreement, it is herein acknowledged that, in conducting such review, the
Trustee or the Custodian on its behalf is under no duty or obligation (i) to
inspect, review or examine any such documents, instruments, certificates or
other papers to determine whether they are genuine, enforceable, or appropriate
for the represented purpose or whether they have actually been recorded or that
they are other than what they purport to be on their face, or to determine
whether any Person executing any documents is authorized to do so or whether any
signature is genuine. If the Trustee or the Custodian, as its agent, finds any
document constituting part of the Mortgage File not to have been executed or
received, or to be unrelated to the Mortgage Loans identified in Exhibit B or to
appear to be defective on its face, the Trustee or the Custodian, as its agent,
shall promptly notify the Seller. In accordance with the Mortgage Loan Purchase
Agreement, the Seller shall correct or cure any such defect within 90 days from
the date of notice from the Trustee of the defect and if the Seller is unable to
cure such defect within such period, and if such defect materially and adversely
affects the interests of the Certificateholders in the related Mortgage Loan,
the Trustee shall enforce the Seller's obligation under the Mortgage Loan
Purchase Agreement to purchase such Mortgage Loan at the Purchase Price,
provided, however, that if such defect relates solely to the inability of the
Seller to deliver the original Security Instrument or intervening assignments
thereof, or a certified copy, because the originals of such documents, or a
certified copy, have not been returned by the applicable jurisdiction, the
Seller shall not be required to purchase such Mortgage Loan, if the Seller
delivers such original documents or certified copy promptly upon receipt, but in
no event later than 360 days after the Closing Date.

                                      -59-

<PAGE>

     (c) In the event that a Mortgage Loan is purchased by the Seller in
accordance with Subsections 2.02(a) or (b) above, the Seller shall remit to the
Master Servicer the Purchase Price for deposit in the Master Servicer Collection
Account and the Seller shall provide to the Trustee written notification
detailing the components of the Purchase Price. Upon deposit of the Purchase
Price in the Master Servicer Collection Account, the Depositor shall give
written notice thereof to the Trustee and the Custodian and the Trustee or the
Custodian, as its agent (upon receipt of a Request for Release in the form of
Exhibit D attached hereto with respect to such Mortgage Loan), shall release to
the Seller the related Mortgage File and the Trustee shall execute and deliver
all instruments of transfer or assignment, without recourse, furnished to it by
the Seller as are necessary to vest in the Seller title to and rights under the
Mortgage Loan. Such purchase shall be deemed to have occurred on the date on
which the Purchase Price in available funds is received by the Trustee. The
Depositor or Master Servicer shall amend the Mortgage Loan Schedule, to reflect
such repurchase and shall promptly notify the Rating Agencies and the Master
Servicer of such amendment. The obligation of the Seller to repurchase any
Mortgage Loan as to which such a defect in a constituent document exists shall
be the sole remedy respecting such defect available to the Certificateholders or
to the Trustee on their behalf.

     Section 2.03 Assignment of Interest in the Mortgage Loan Purchase
Agreement.

     (a) The Depositor hereby assigns to the Trustee, on behalf of the
Certificateholders, all of its right, title and interest in the Mortgage Loan
Purchase Agreement, including but not limited to Depositor's rights pursuant to
the Servicing Agreements (noting that the Seller has retained the right in the
event of breach of the representations, warranties and covenants, if any, with
respect to the related Mortgage Loans of the related Servicer under the related
Servicing Agreement to enforce the provisions thereof and to seek all or any
available remedies). The obligations of the Seller to substitute or repurchase,
as applicable, a Mortgage Loan shall be the Trustee's and the
Certificateholders' sole remedy for any breach thereof. At the request of the
Trustee, the Depositor shall take such actions as may be necessary to enforce
the above right, title and interest on behalf of the Trustee and the
Certificateholders or shall execute such further documents as the Trustee may
reasonably require in order to enable the Trustee to carry out such enforcement.
With respect to the representations and warranties described in the Mortgage
Loan Purchase Agreement that are made to the best of the Seller's knowledge, if
it is discovered by any of the Depositor, the Seller, the Master Servicer, the
Securities Administrator or the Trustee that the substance of such
representation and warranty is inaccurate and such inaccuracy materially and
adversely affects the value of the related Mortgage Loan, then notwithstanding
the Seller's lack of knowledge with respect to the substance of such
representation and warranty, such inaccuracy shall be deemed a breach of the
applicable representation or warranty.

     (b) If the Depositor, the Master Servicer, Securities Administrator or the
Trustee discovers a breach of any of the representations and warranties set
forth in the Mortgage Loan Purchase Agreement, which breach materially and
adversely affects the value of the interests of Certificateholders or the
Trustee in the related Mortgage Loan, the party discovering the breach shall
give prompt written notice of the breach to the other parties. The Seller,
within 90 days of its discovery or receipt of notice that such breach has
occurred (whichever occurs earlier), shall cure the breach in all material
respects or, subject to the Mortgage Loan Purchase Agreement or Section 2.04 of
this Agreement, as applicable, shall purchase the Mortgage Loan or any property
acquired with respect thereto from the Trustee; provided, however, that if there
is a breach of any

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<PAGE>

representation set forth in the Mortgage Loan Purchase Agreement or Section 2.04
of this Agreement, as applicable, and the Mortgage Loan or the related property
acquired with respect thereto has been sold, then the Seller shall pay, in lieu
of the Purchase Price, any excess of the Purchase Price over the Net Liquidation
Proceeds received upon such sale. (If the Net Liquidation Proceeds exceed the
Purchase Price, any excess shall be paid to the Seller to the extent not
required by law to be paid to the borrower.) Any such purchase by the Seller
shall be made by providing an amount equal to the Purchase Price to the Master
Servicer for deposit in the Master Servicer Collection Account and written
notification detailing the components of such Purchase Price. The Depositor
shall notify the Trustee in writing of the deposit of the Purchase Price and
submit to the Trustee or the Custodian, as its agent, a Request for Release, and
the Trustee shall release, or the Trustee shall cause the Custodian to release,
to the Seller the related Mortgage File and the Trustee shall execute and
deliver all instruments of transfer or assignment furnished to it by the Seller,
without recourse, as are necessary to vest in the Seller title to and rights
under the Mortgage Loan or any property acquired with respect thereto. Such
purchase shall be deemed to have occurred on the date on which the Purchase
Price in available funds is received by the Master Servicer. The Depositor or
the Master Servicer shall amend the Mortgage Loan Schedule to reflect such
repurchase and shall promptly notify the Master Servicer and the Rating Agencies
of such amendment. Enforcement of the obligation of the Seller to purchase (or
substitute a Substitute Mortgage Loan for) any Mortgage Loan or any property
acquired with respect thereto (or pay the Purchase Price as set forth in the
above proviso) as to which a breach has occurred and is continuing shall
constitute the sole remedy respecting such breach available to the
Certificateholders or the Trustee on their behalf.

     Section 2.04 Substitution of Mortgage Loans. Notwithstanding anything to
the contrary in this Agreement, in lieu of purchasing a Mortgage Loan pursuant
to the Mortgage Loan Purchase Agreement or Sections 2.02 or 2.03 of this
Agreement, the Seller may, no later than the date by which such purchase by the
Seller would otherwise be required, tender to the Trustee a Substitute Mortgage
Loan accompanied by a certificate of an authorized officer of the Seller that
such Substitute Mortgage Loan conforms to the requirements set forth in the
definition of "Substitute Mortgage Loan" in the Mortgage Loan Purchase Agreement
or this Agreement, as applicable; provided, however, that substitution pursuant
to the Mortgage Loan Purchase Agreement or Section 2.04 of this Agreement, as
applicable, in lieu of purchase shall not be permitted after the termination of
the two-year period beginning on the Startup Day; provided, further, that if the
breach would cause the Mortgage Loan to be other than a "qualified mortgage" as
defined in Section 860G(a)(3) of the Code, any such cure or substitution must
occur within 90 days from the date the breach was discovered. The Trustee or the
Custodian, as its agent, shall examine the Mortgage File for any Substitute
Mortgage Loan in the manner set forth in Section 2.02(a) and the Trustee or the
Custodian, as its agent, shall notify the Seller, in writing, within five
Business Days after receipt, whether or not the documents relating to the
Substitute Mortgage Loan satisfy the requirements of the fourth sentence of
Subsection 2.02(a). Within two Business Days after such notification, the Seller
shall provide to the Securities Administrator for deposit in the Distribution
Account the amount, if any, by which the Outstanding Principal Balance as of the
next preceding Due Date of the Mortgage Loan for which substitution is being
made, after giving effect to Scheduled Principal due on such date, exceeds the
Outstanding Principal Balance as of such date of the Substitute Mortgage Loan,
after giving effect to Scheduled Principal due on such date, which amount shall
be treated for the purposes of this Agreement as if it were the payment by the
Seller of the Purchase Price for the

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<PAGE>

purchase of a Mortgage Loan by the Seller. After such notification to the Seller
and, if any such excess exists, upon written notification of the receipt of such
deposit, the Trustee shall accept such Substitute Mortgage Loan which shall
thereafter be deemed to be a Mortgage Loan hereunder. In the event of such a
substitution, accrued interest on the Substitute Mortgage Loan for the month in
which the substitution occurs and any Principal Prepayments made thereon during
such month shall be the property of the Issuing Entity and accrued interest for
such month on the Mortgage Loan for which the substitution is made and any
Principal Prepayments made thereon during such month shall be the property of
the Seller. The Scheduled Principal on a Substitute Mortgage Loan due on the Due
Date in the month of substitution shall be the property of the Seller and the
Scheduled Principal on the Mortgage Loan for which the substitution is made due
on such Due Date shall be the property of the Issuing Entity. Upon acceptance of
the Substitute Mortgage Loan (and delivery to the Trustee or Custodian of a
Request for Release for such Mortgage Loan), the Trustee shall release to the
Seller the related Mortgage File related to any Mortgage Loan released pursuant
to the Mortgage Loan Purchase Agreement or Section 2.04 of this Agreement, as
applicable, and shall execute and deliver all instruments of transfer or
assignment, without recourse, in form as provided to it as are necessary to vest
in the Seller title to and rights under any Mortgage Loan released pursuant to
the Mortgage Loan Purchase Agreement or Section 2.04 of this Agreement, as
applicable. The Seller shall deliver the documents related to the Substitute
Mortgage Loan in accordance with the provisions of the Mortgage Loan Purchase
Agreement or Subsections 2.01(b) and 2.02(b) of this Agreement, as applicable,
with the date of acceptance of the Substitute Mortgage Loan deemed to be the
Closing Date for purposes of the time periods set forth in those Subsections.
The representations and warranties set forth in the Mortgage Loan Purchase
Agreement shall be deemed to have been made by the Seller with respect to each
Substitute Mortgage Loan as of the date of acceptance of such Mortgage Loan by
the Trustee. The Master Servicer shall amend the Mortgage Loan Schedule to
reflect such substitution and shall provide a copy of such amended Mortgage Loan
Schedule to the Trustee and the Rating Agencies.

     Notwithstanding any other provision of this Agreement, the right to
substitute Mortgage Loans pursuant to this Article II shall be subject to the
additional limitations that no substitution of a Mortgage Loan shall be made
unless the Securities Administrator and the Trustee shall have received an
Opinion of Counsel (at the expense of the party seeking to make the
substitution) that, under current law, such substitution will not (A) affect
adversely the status of any REMIC established hereunder as a REMIC, or of the
related "regular interests" as "regular interests" in any such REMIC, or (B)
cause any such REMIC to engage in a "prohibited transaction" or prohibited
contribution pursuant to the REMIC provisions.

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<PAGE>

     Section 2.05 Issuance of Certificates. The Trustee acknowledges the
assignment to it on behalf of the Issuing Entity of the Mortgage Loans and the
other assets comprising the Trust Fund and, concurrently therewith, the
Securities Administrator has signed, and countersigned and delivered to the
Depositor, in exchange therefor, Certificates in such authorized denominations
representing such Percentage Interests as the Depositor has requested. The
Trustee agrees that it will hold the Mortgage Loans and such other assets as may
from time to time be delivered to it segregated on the books of the Trustee in
trust for the benefit of the Certificateholders.

     Section 2.06 Representations and Warranties Concerning the Depositor. The
Depositor hereby represents and warrants to the Trustee, the Master Servicer and
the Securities Administrator as follows:

          (i) the Depositor (a) is a corporation duly organized, validly
     existing and in good standing under the laws of the State of Delaware and
     (b) is qualified and in good standing as a foreign corporation to do
     business in each jurisdiction where such qualification is necessary, except
     where the failure so to qualify would not reasonably be expected to have a
     material adverse effect on the Depositor's business as presently conducted
     or on the Depositor's ability to enter into this Agreement and to
     consummate the transactions contemplated hereby;

          (ii) the Depositor has full corporate power to own its property, to
     carry on its business as presently conducted and to enter into and perform
     its obligations under this Agreement;

          (iii) the execution and delivery by the Depositor of this Agreement
     have been duly authorized by all necessary corporate action on the part of
     the Depositor; and neither the execution and delivery of this Agreement,
     nor the consummation of the transactions herein contemplated, nor
     compliance with the provisions hereof, will conflict with or result in a
     breach of, or constitute a default under, any of the provisions of any law,
     governmental rule, regulation, judgment, decree or order binding on the
     Depositor or its properties or the articles of incorporation or by-laws of
     the Depositor, except those conflicts, breaches or defaults which would not
     reasonably be expected to have a material adverse effect on the Depositor's
     ability to enter into this Agreement and to consummate the transactions
     contemplated hereby;

          (iv) the execution, delivery and performance by the Depositor of this
     Agreement and the consummation of the transactions contemplated hereby do
     not require the consent or approval of, the giving of notice to, the
     registration with, or the taking of any other action in respect of, any
     state, federal or other governmental authority or agency, except those
     consents, approvals, notices, registrations or other actions as have
     already been obtained, given or made;

          (v) this Agreement has been duly executed and delivered by the
     Depositor and, assuming due authorization, execution and delivery by the
     other parties hereto, constitutes a valid and binding obligation of the
     Depositor enforceable against it in

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<PAGE>

     accordance with its terms (subject to applicable bankruptcy and insolvency
     laws and other similar laws affecting the enforcement of the rights of
     creditors generally);

          (vi) there are no actions, suits or proceedings pending or, to the
     knowledge of the Depositor, threatened against the Depositor, before or by
     any court, administrative agency, arbitrator or governmental body (i) with
     respect to any of the transactions contemplated by this Agreement or (ii)
     with respect to any other matter which in the judgment of the Depositor
     will be determined adversely to the Depositor and will if determined
     adversely to the Depositor materially and adversely affect the Depositor's
     ability to enter into this Agreement or perform its obligations under this
     Agreement; and the Depositor is not in default with respect to any order of
     any court, administrative agency, arbitrator or governmental body so as to
     materially and adversely affect the transactions contemplated by this
     Agreement; and

          (vii) immediately prior to the transfer and assignment to the Trustee,
     each Mortgage Note and each Mortgage were not subject to an assignment or
     pledge, and the Depositor had good and marketable title to and was the sole
     owner thereof and had full right to transfer and sell such Mortgage Loan to
     the Trustee free and clear of any encumbrance, equity, lien, pledge,
     charge, claim or security interest.

     Section 2.07 Representations and Warranties Concerning the Master Servicer
and Securities Administrator. Wells Fargo Bank, N.A., in its capacity as Master
Servicer and Securities Administrator hereby represents and warrants to the
Seller, the Depositor and the Trustee as follows, as of the Closing Date:

          (i) It 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 and the Securities
     Administrator, to the extent necessary to ensure its ability to master
     service the Mortgage Loans in accordance with the terms of this Agreement
     and to perform any of its other obligations under this Agreement in
     accordance with the terms hereof;

          (ii) It has the full corporate power and authority to execute, deliver
     and perform, and to enter into and consummate the transactions contemplated
     by this Agreement and has duly authorized by all necessary corporate action
     on its part the execution, delivery and performance of this Agreement; and
     this Agreement, assuming the due authorization, execution and delivery
     hereof by the other parties hereto, constitutes its legal, valid and
     binding obligation, enforceable against it in accordance with its terms,
     except that (a) the enforceability hereof may be limited by bankruptcy,
     insolvency, moratorium, receivership and other similar laws relating to
     creditors' rights generally and (b) the remedy of specific performance and
     injunctive and other forms of equitable relief may be subject to equitable
     defenses and to the discretion of the court before which any proceeding
     therefor may be brought.

          (iii) The execution and delivery of this Agreement by it, the
     consummation of any other of the transactions contemplated by this
     Agreement, and the fulfillment of or

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<PAGE>

     compliance with the terms hereof are in its ordinary course of business and
     will not (A) result in a material breach of any term or provision of its
     charter or by-laws or (B) materially conflict with, result in a material
     breach, violation or acceleration of, or result in a material default
     under, the terms of any other material agreement or instrument to which it
     is a party or by which it may be bound, or (C) constitute a material
     violation of any statute, order or regulation applicable to it of any
     court, regulatory body, administrative agency or governmental body having
     jurisdiction over it; and it is not in breach or violation of any material
     indenture or other material agreement or instrument, or in violation of any
     statute, order or regulation of any court, regulatory body, administrative
     agency or governmental body having jurisdiction over it which breach or
     violation may materially impair its ability to perform or meet any of its
     obligations under this Agreement.

          (iv) No litigation is pending or, to the best of its knowledge,
     threatened, against it that would materially and adversely affect the
     execution, delivery or enforceability of this Agreement or its ability to
     perform any of its other obligations under this Agreement in accordance
     with the terms hereof.

          (v) No consent, approval, authorization or order of any court or
     governmental agency or body is required for its execution, delivery and
     performance of, or compliance with, this Agreement or the consummation of
     the transactions contemplated hereby, or if any such consent, approval,
     authorization or order is required, it has obtained the same.

                                  ARTICLE III
                 ADMINISTRATION AND SERVICING OF MORTGAGE LOANS

     Section 3.01 Master Servicer. The Master Servicer shall supervise, monitor
and oversee the obligation of the Servicers to service and administer their
respective Mortgage Loans in accordance with the terms of the applicable
Servicing Agreement and shall have full power and authority to do any and all
things which it may deem necessary or desirable in connection with such master
servicing and administration. In performing its obligations hereunder, the
Master Servicer shall act in a manner consistent with Accepted Master Servicing
Practices. Furthermore, the Master Servicer shall oversee and consult with each
Servicer as necessary from time-to-time to carry out the Master Servicer's
obligations hereunder, shall receive, review and evaluate all reports,
information and other data provided to the Master Servicer by each Servicer and
shall cause each Servicer to perform and observe the covenants, obligations and
conditions to be performed or observed by such Servicer under the applicable
Servicing Agreement. The Master Servicer shall independently and separately
monitor each Servicer's servicing activities with respect to each related
Mortgage Loan, reconcile the results of such monitoring with such information
provided in the previous sentence on a monthly basis and coordinate corrective
adjustments to the Servicers' and Master Servicer's records, and based on such
reconciled and corrected information, the Master Servicer shall provide such
information to the Securities Administrator as shall be necessary in order for
it to prepare the statements specified in Section 6.04, and prepare any other
information and statements required to be forwarded by the Master Servicer
hereunder. The Master Servicer shall reconcile the results of its monitoring
with the actual remittances of the Servicers to the Master Servicer Collection
Account pursuant to the applicable Servicing Agreements.

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<PAGE>

     If the Master Servicer and the Securities Administrator are the same
entity, then at any time the Master Servicer is terminated as Master Servicer,
the Securities Administrator shall likewise be removed as securities
administrator.

     The Trustee shall furnish the Servicers and the Master Servicer with any
limited powers of attorney and other documents in form acceptable to it
necessary or appropriate to enable the Servicers and the Master Servicer to
service and administer the related Mortgage Loans and REO Property. The Trustee
shall have no liability with respect to the use of any such limited power of
attorney.

     The Trustee or the Custodian shall provide access to the records and
documentation in possession of the Trustee or the Custodian regarding the
related Mortgage Loans and REO Property and the servicing thereof to the
Certificateholders, the FDIC, and the supervisory agents and examiners of the
FDIC, such access being afforded only upon reasonable prior written request and
during normal business hours at the office of the Trustee or the Custodian;
provided, however, that, unless otherwise required by law, the Trustee or the
Custodian shall not be required to provide access to such records and
documentation if the provision thereof would violate the legal right to privacy
of any Mortgagor. The Trustee or the Custodian 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 or the
Custodian's actual costs.

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

     Section 3.02 REMIC-Related Covenants. For as long as each REMIC shall
exist, the Trustee and the Securities Administrator shall act in accordance
herewith to assure continuing treatment of such REMIC as a REMIC, and the
Trustee and the Securities Administrator shall comply with any directions of the
Depositor, the related Servicer or the Master Servicer to assure such continuing
treatment. In particular, the Trustee shall not (a) sell or permit the sale of
all or any portion of the Mortgage Loans or of any investment of deposits in an
Account unless such sale is as a result of a repurchase of the Mortgage Loans
pursuant to this Agreement or the Trustee has received a REMIC Opinion prepared
at the expense of the Issuing Entity; and (b) other than with respect to a
substitution pursuant to the Mortgage Loan Purchase Agreement or Section 2.04 of
this Agreement, as applicable, accept any contribution to any REMIC after the
Startup Day without receipt of a REMIC Opinion.

     Section 3.03 Monitoring of Servicers.

     (a) The Master Servicer shall be responsible for reporting to the Trustee
and the Depositor the compliance by each Servicer with its duties under the
related Servicing Agreement. In the review of each Servicer's activities, the
Master Servicer may rely upon an

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<PAGE>

officer's certificate of the Servicer with regard to such Servicer's compliance
with the terms of its Servicing Agreement. In the event that the Master
Servicer, in its judgment, determines that a Servicer should be terminated in
accordance with its Servicing Agreement, or that a notice should be sent
pursuant to such Servicing Agreement with respect to the occurrence of an event
that, unless cured, would constitute grounds for such termination, the Master
Servicer shall notify the Depositor 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 each Servicer under the
related Servicing Agreement, and shall, in the event that a Servicer fails to
perform its obligations in accordance with the related Servicing Agreement,
subject to the preceding paragraph, terminate the rights and obligations of such
Servicer thereunder and act as servicer of the related Mortgage Loans or, if the
Master Servicer is unwilling or unable to act as a Servicer, the Master Servicer
shall cause the Trustee to enter in to a new Servicing Agreement with a
successor Servicer selected by the Master Servicer that is eligible in
accordance with the criteria specified in this Agreement; provided, however, it
is understood and acknowledged by the parties hereto that there will be a period
of transition (not to exceed 90 days) before the actual servicing functions can
be fully transferred to such successor servicer. In either event, such
enforcement, including, without limitation, the legal prosecution of claims,
termination of the Servicing Agreements and the pursuit of other appropriate
remedies, shall be in such form and carried out to such an extent and at such
time as the Master Servicer, in its good faith business judgment, would require
were it the owner of the related Mortgage Loans. The Master Servicer shall pay
the costs of such enforcement at its own expense subject to Section 3.03(c),
provided that the Master Servicer shall not be required to prosecute or defend
any legal action except to the extent that the Master Servicer shall have
received reasonable indemnity for its costs and expenses in pursuing such
action.

     (c) To the extent that the costs and expenses of the Master Servicer
related to any termination of a Servicer, appointment of a successor Servicer or
the transfer and assumption of servicing by the Master Servicer with respect to
any Servicing Agreement (including, without limitation, (i) all legal costs and
expenses and all due diligence costs and expenses associated with an evaluation
of the potential termination of a Servicer as a result of an event of default by
such Servicer and (ii) all costs and expenses associated with the complete
transfer of servicing, including all servicing files and all servicing data and
the completion, correction or manipulation of such servicing data as may be
required by the successor servicer to correct any errors or insufficiencies in
the servicing data or otherwise to enable the successor service to service the
Mortgage Loans in accordance with the related Servicing Agreement) are not fully
and timely reimbursed by the terminated Servicer, the Master Servicer shall be
entitled to reimbursement of such costs and expenses from the Master Servicer
Collection Account pursuant to Section 4.03(b).

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

     (e) If the Master Servicer acts as Servicer, it will not assume liability
for the representations and warranties of such Servicer, if any, that it
replaces.

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<PAGE>

     Section 3.04 Fidelity Bond. The Master Servicer, at its expense, shall
maintain in effect a blanket fidelity bond and an errors and omissions insurance
policy, affording coverage with respect to all directors, officers, employees
and other Persons acting on such Master Servicer's behalf, and covering errors
and omissions in the performance of the Master Servicer's obligations hereunder.
The errors and omissions insurance policy and the fidelity bond shall be in such
form and amount generally acceptable for entities serving as master servicers or
trustees.

     Section 3.05 Power to Act; Procedures. The Master Servicer shall master
service the Mortgage Loans and shall have full power and authority, subject to
the REMIC Provisions and the provisions of Article X hereof, to do any and all
things that it may deem necessary or desirable in connection with the master
servicing and administration of the Mortgage Loans, including but not limited to
the power and authority (i) to execute and deliver, on behalf of the
Certificateholders and the Trustee, customary consents or waivers and other
instruments and documents, (ii) to consent to transfers of any Mortgaged
Property and assumptions of the Mortgage Notes and related Mortgages, (iii) to
collect any Insurance Proceeds and Liquidation Proceeds, and (iv) to effectuate
foreclosure or other conversion of the ownership of the Mortgaged Property
securing any Mortgage Loan, in each case, in accordance with the provisions of
this Agreement and the related Servicing Agreement, as applicable; provided,
however, that the Master Servicer shall not (and, consistent with its
responsibilities under Section 3.03, shall not permit any Servicer to) knowingly
or intentionally take any action, or fail to take (or fail to cause to be taken)
any action reasonably within its control and the scope of duties more
specifically set forth herein, that, under the REMIC Provisions, if taken or not
taken, as the case may be, would cause any REMIC created hereunder to fail to
qualify as a REMIC or result in the imposition of a tax upon the Issuing Entity
(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 would cause any REMIC created hereunder to
fail to qualify as a REMIC or result in the imposition of a tax upon any REMIC
created hereunder. The Trustee shall furnish the Master Servicer, upon written
request from a Servicing Officer, with any limited powers of attorney (in form
acceptable to the Trustee) empowering the Master Servicer or any Servicer to
execute and deliver instruments of satisfaction or cancellation, or of partial
or full release or discharge, and to foreclose upon or otherwise liquidate
Mortgaged Property, and to appeal, prosecute or defend in any court action
relating to the Mortgage Loans or the Mortgaged Property, in accordance with the
applicable Servicing Agreement and this Agreement, and the Trustee shall execute
and deliver such other documents, as the Master Servicer may request, to enable
the Master Servicer to master service and administer the Mortgage Loans and
carry out its duties hereunder, in each case in accordance with Accepted Master
Servicing Practices (and the Trustee shall have no liability for misuse of any
such powers of attorney by the Master Servicer or any Servicer). If the Master
Servicer or the Trustee has been advised that it is likely that the laws of the
state in which action is to be taken prohibit such action if taken in the name
of the Trustee or that the Trustee would be adversely affected under the "doing
business" or tax laws of such state if such action is taken in its name, the
Master Servicer shall join with the Trustee in the appointment of a co-trustee
pursuant to Section 9.11 hereof. In the performance of its duties hereunder, the
Master Servicer shall 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.

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     Section 3.06 Due-on-Sale Clauses; Assumption Agreements. To the extent
provided in the applicable Servicing Agreement, to the extent Mortgage Loans
contain enforceable due-on-sale clauses, the Master Servicer shall cause the
Servicers to enforce such clauses in accordance with the applicable Servicing
Agreement. If applicable law prohibits the enforcement of a due-on-sale clause
or such clause is otherwise not enforced in accordance with the applicable
Servicing Agreement, and, as a consequence, a Mortgage Loan is assumed, the
original Mortgagor may be released from liability in accordance with the
applicable Servicing Agreement.

     Section 3.07 Release of Mortgage Files.

     (a) Upon becoming aware of the payment in full of any Mortgage Loan, or the
receipt by any Servicer of a notification that payment in full has been escrowed
in a manner customary for such purposes for payment to Certificateholders on the
next Distribution Date, the Servicers or the Master Servicer will, if required
under the applicable Servicing Agreement, promptly furnish to the Custodian, on
behalf of the Trustee, two copies of a certification substantially in the form
of Exhibit D hereto signed by a Servicing Officer or in a mutually agreeable
electronic format which will, in lieu of a signature on its face, originate from
a Servicing Officer (which certification shall include a statement to the effect
that all amounts received in connection with such payment that are required to
be deposited in the Protected Account maintained by the applicable Servicer
pursuant to its Servicing Agreement have been or will be so deposited) and shall
request that the Custodian, on behalf of the Trustee, deliver to the applicable
Servicer the related Mortgage File. Upon receipt of such certification and
request, the Custodian, on behalf of the Trustee, shall no later than five
Business Days (or, to the extent that the applicable Servicer notifies the
Seller that a document is not in the Servicer's possession as part of the
Servicing File which is needed for purposes of the Servicer complying with any
applicable law, within such shorter period as may be necessary to enable the
Servicer to comply with such law), release the related Mortgage File to the
applicable Servicer and the Trustee and Custodian shall have no further
responsibility with regard to such Mortgage File. Upon any such payment in full,
each Servicer is authorized, to give, as agent for the Trustee, as the mortgagee
under the Mortgage that secured the Mortgage Loan, an instrument of satisfaction
(or assignment of mortgage without recourse) regarding the Mortgaged Property
subject to the Mortgage, which instrument of satisfaction or assignment, as the
case may be, shall be delivered to the Person or Persons entitled thereto
against receipt therefor of such payment, it being understood and agreed that no
expenses incurred in connection with such instrument of satisfaction or
assignment, as the case may be, shall be chargeable to the Protected Account.

     (b) From time to time and as appropriate for the servicing or foreclosure
of any Mortgage Loan and in accordance with the applicable Servicing Agreement,
the Trustee shall execute such documents as requested and as shall be prepared
and furnished to the Trustee by a Servicer or the Master Servicer and as are
necessary to the prosecution of any such proceedings. In connection with the
foregoing, the Custodian, on behalf of the Trustee, shall, upon the request of a
Servicer or the Master Servicer, and delivery to the Custodian, on behalf of the
Trustee, of two copies of a Request for Release signed by a Servicing Officer
substantially in the form of Exhibit D (or in a mutually agreeable electronic
format which will, in lieu of a signature on its face, originate from a
Servicing Officer), release the related Mortgage File held in its possession or
control to the related Servicer or the Master Servicer, as applicable. Such
trust receipt shall

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<PAGE>

obligate the related Servicer or the Master Servicer to return the Mortgage File
to the Custodian on behalf of the Trustee, when the need therefor by the
Servicer or the Master Servicer no longer exists unless the Mortgage Loan shall
be liquidated, in which case, upon receipt of a certificate of a Servicing
Officer similar to that hereinabove specified, the Mortgage File shall be
released by the Custodian, on behalf of the Trustee, to the related Servicer or
the Master Servicer.

     Section 3.08 Documents, Records and Funds in Possession of Master Servicer
To Be Held for Trustee.

     (a) The Master Servicer shall transmit and each Servicer (to the extent
required by the related Servicing Agreement) shall transmit to the Trustee or
Custodian such documents and instruments coming into the possession of the
Master Servicer or such Servicer from time to time as are required by the terms
hereof, or in the case of the Servicers, the applicable Servicing Agreement, to
be delivered to the Trustee or Custodian. Any funds received by the Master
Servicer or by a Servicer in respect of any Mortgage Loan or which otherwise are
collected by the Master Servicer or by a Servicer as Liquidation Proceeds or
Insurance Proceeds in respect of any Mortgage Loan shall be held for the benefit
of the Trustee and the Certificateholders subject to the Master Servicer's right
to retain or withdraw from the Master Servicer Collection Account the Master
Servicing Compensation and other amounts provided in this Agreement, and to the
right of each Servicer to retain its Servicing Fee and other amounts as provided
in the applicable Servicing Agreement. The Master Servicer shall, and (to the
extent provided in the applicable Servicing Agreement) shall cause each Servicer
to, provide access to information and documentation regarding the Mortgage Loans
to the Trustee, its agents and accountants at any time upon reasonable request
and during normal business hours, and to Certificateholders that are savings and
loan associations, banks or insurance companies, the Office of Thrift
Supervision, the FDIC and the supervisory agents and examiners of such Office
and Corporation or examiners of any other federal or state banking or insurance
regulatory authority if so required by applicable regulations of the Office of
Thrift Supervision or other regulatory authority, such access to be afforded
without charge but only upon reasonable request in writing and during normal
business hours at the offices of the Master Servicer designated by it. In
fulfilling such a request, the Master Servicer shall not be responsible for
determining the sufficiency of such information.

     (b) All Mortgage Files and funds collected or held by, or under the control
of, the Master Servicer, in respect of any Mortgage Loans, whether from the
collection of principal and interest payments or from Liquidation Proceeds or
Insurance Proceeds, shall be held by the Master Servicer for and on behalf of
the Trustee and the Certificateholders and shall be and remain the sole and
exclusive property of the Trustee; provided, however, that the Master Servicer
and each Servicer shall be entitled to setoff against, and deduct from, any such
funds any amounts that are properly due and payable to the Master Servicer or
such Servicer under this Agreement or the applicable Servicing Agreement.

     Section 3.09 Standard Hazard Insurance and Flood Insurance Policies.

     (a) For each Mortgage Loan, the Master Servicer shall enforce any
obligation of the Servicers under the related Servicing Agreements to maintain
or cause to be maintained standard fire and casualty insurance and, where
applicable, flood insurance, all in accordance with the

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<PAGE>

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

     (b) Pursuant to Sections 4.01 and 4.02, any amounts collected by the
Servicers or the Master Servicer, under any insurance policies (other than
amounts to be applied to the restoration or repair of the property subject to
the related Mortgage or released to the Mortgagor in accordance with the
applicable Servicing Agreement) shall be deposited into the Master Servicer
Collection Account, subject to withdrawal pursuant to Sections 4.02 and 4.03 in
accordance with the terms and conditions of the related Servicing Agreement. Any
cost incurred by the Master Servicer or any Servicer in maintaining any such
insurance if the Mortgagor defaults in its obligation to do so shall be added to
the amount owing under the Mortgage Loan where the terms of the Mortgage Loan so
permit; provided, however, that the addition of any such cost shall not be taken
into account for purposes of calculating the distributions to be made to
Certificateholders and shall be recoverable by the Master Servicer or such
Servicer pursuant to Sections 4.02 and 4.03.

     Section 3.10 Presentment of Claims and Collection of Proceeds. The Master
Servicer shall (to the extent provided in the applicable Servicing Agreement)
cause the related Servicer to, prepare and present on behalf of the Trustee and
the Certificateholders all claims under the Insurance Policies and take such
actions (including the negotiation, settlement, compromise or enforcement of the
insured's claim) as shall be necessary to realize recovery under such policies.
Any proceeds disbursed to the Master Servicer (or disbursed to a Servicer and
remitted to the Master Servicer) in respect of such policies, bonds or contracts
shall be promptly deposited in the Master Servicer Collection Account upon
receipt, except that any amounts realized that are to be applied to the repair
or restoration of the related Mortgaged Property as a condition precedent to the
presentation of claims on the related Mortgage Loan to the insurer under any
applicable Insurance Policy need not be so deposited (or remitted).

     Section 3.11 Maintenance of the Primary Mortgage Insurance Policies.

     (a) The Master Servicer shall not take, or permit any Servicer (to the
extent such action is prohibited under the applicable Servicing Agreement) to
take, any action that would result in noncoverage under any applicable Primary
Mortgage Insurance Policy of any loss which, but for the actions of such Master
Servicer or Servicer, would have been covered thereunder. The Master Servicer
shall use its best reasonable efforts to cause each Servicer (to the extent
required under the related Servicing Agreement) to keep in force and effect (to
the extent that the Mortgage Loan requires the Mortgagor to maintain such
insurance), primary mortgage insurance applicable to each Mortgage Loan in
accordance with the provisions of this Agreement and the related Servicing
Agreement, as applicable. The Master Servicer shall not, and shall not permit
any Servicer (to the extent required under the related Servicing Agreement) to,
cancel or refuse to renew any such Primary Mortgage Insurance Policy that is in
effect at the date of the initial issuance of the Mortgage Note and is required
to be kept in force hereunder

                                      -71-

<PAGE>

except in accordance with the provisions of this Agreement and the related
Servicing Agreement, as applicable.

     (b) The Master Servicer agrees to present, or to cause each Servicer (to
the extent required under the related Servicing Agreement) to present, on behalf
of the Trustee and the Certificateholders, claims to the insurer under any
Primary Mortgage Insurance Policies and, in this regard, to take such reasonable
action as shall be necessary to permit recovery under any Primary Mortgage
Insurance Policies respecting defaulted Mortgage Loans. Pursuant to Section 4.01
and 4.02, any amounts collected by the Master Servicer or any Servicer under any
Primary Mortgage Insurance Policies shall be deposited in the Master Servicer
Collection Account, subject to withdrawal pursuant to Section 4.03.

     Section 3.12 Trustee to Retain Possession of Certain Insurance Policies and
Documents. The Trustee or the Custodian 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 otherwise has
fulfilled its obligations under this Agreement, the Trustee or its Custodian
shall also retain possession and custody of each Mortgage File in accordance
with and subject to the terms and conditions of this Agreement. The Master
Servicer shall promptly deliver or cause to be delivered to the Trustee or the
Custodian 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 portions of the Mortgage File that come
into the possession of the Master Servicer from time to time.

     Section 3.13 Realization Upon Defaulted Mortgage Loans. The Master Servicer
shall cause each Servicer (to the extent required under the related Servicing
Agreement) to foreclose upon, repossess or otherwise comparably convert the
ownership of Mortgaged Properties securing such of the Mortgage Loans as come
into and continue in default and as to which no satisfactory arrangements can be
made for collection of delinquent payments, all in accordance with the terms and
conditions of the applicable Servicing Agreement.

     Section 3.14 Compensation for the Master Servicer. The Master Servicer will
be entitled to all income and gain realized from any investment of funds in the
Master Servicer Collection Account, pursuant to Article IV, for the performance
of its activities hereunder. Servicing compensation in the form of assumption
fees, if any, late payment charges, as collected, if any, or otherwise (but not
including any prepayment premium or penalty) shall be retained by the applicable
Servicer and shall not be deposited in the Protected Account. The Master
Servicer shall be required to pay all expenses incurred by it in connection with
its activities hereunder and shall not be entitled to reimbursement therefor
except as provided in this Agreement.

     Section 3.15 REO Property.

     (a) In the event the Issuing Entity acquires ownership of any REO Property
in respect of any related Mortgage Loan, the deed or certificate of sale shall
be issued to the Trustee, or to

                                      -72-

<PAGE>

its nominee, on behalf of the related Certificateholders. The Master Servicer
shall, to the extent provided in the applicable Servicing Agreement, cause the
applicable Servicer to sell, any REO Property as expeditiously as possible and
in accordance with the provisions of this Agreement and the related Servicing
Agreement, as applicable. Pursuant to its efforts to sell such REO Property, the
Master Servicer shall cause the applicable Servicer to protect and conserve,
such REO Property in the manner and to the extent required by the applicable
Servicing Agreement, in accordance with the REMIC Provisions and in a manner
that does not result in a tax on "net income from foreclosure property" or cause
such REO Property to fail to qualify as "foreclosure property" within the
meaning of Section 860G(a)(8) of the Code.

     (b) The Master Servicer shall, to the extent required by the related
Servicing Agreement, cause the applicable Servicer to deposit all funds
collected and received in connection with the operation of any REO Property in
the Protected Account.

     (c) The Master Servicer and the applicable Servicer, upon the final
disposition of any REO Property, shall be entitled to reimbursement for any
related unreimbursed Monthly Advances and other unreimbursed advances as well as
any unpaid Servicing Fees from Liquidation Proceeds received in connection with
the final disposition of such REO Property; provided, that any such unreimbursed
Monthly Advances as well as any unpaid Servicing Fees may be reimbursed or paid,
as the case may be, prior to final disposition, out of any net rental income or
other net amounts derived from such REO Property.

     (d) To the extent provided in the related Servicing Agreement, the
Liquidation Proceeds from the final disposition of the REO Property, net of any
payment to the Master Servicer and the applicable Servicer as provided above
shall be deposited in the Protected Account on or prior to the Determination
Date in the month following receipt thereof and be remitted by wire transfer in
immediately available funds to the Master Servicer for deposit into the related
Master Servicer Collection Account on the next succeeding Servicer Remittance
Date.

     Section 3.16 Annual Statement as to Compliance.

     Not later than March 1 of each calendar year (other than the calendar year
during which the Closing Date occurs), each Servicer shall deliver (or otherwise
make available) and each Servicer shall cause any Servicing Function Participant
engaged by it to deliver to the Master Servicer, the Securities Administrator
and the Depositor, an Officer's Certificate in the form attached hereto as
Exhibit P stating, as to each signatory thereof, that (i) a review of the
activities of such signatory during the preceding calendar year, or portion
thereof, and of the performance of such signatory under the related Servicing
Agreement or such other applicable agreement in the case of a Servicing Function
Participant has been made under such officer's supervision, and (ii) to the best
of such officer's knowledge, based on such review, such signatory has fulfilled
all its obligations under this Agreement, the related Servicing Agreement or
such other applicable agreement in all material respects throughout such year or
a 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.

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<PAGE>

     The Master Servicer and the Securities Administrator shall deliver (or
otherwise make available) (and the Trustee, the Master Servicer and Securities
Administrator shall cause any Servicing Function Participant engaged by it to
deliver) to the Depositor and the Securities Administrator on or before March 1
(with a ten-calendar day cure period) 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 a 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 a 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.

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

     In the event the Master Servicer, the Securities Administrator or any
Servicing Function Participant engaged by any such party or the Trustee is
terminated, assigns its rights and obligations under or resigns pursuant to the
terms of this Agreement, or such other applicable agreement in the case of a
Servicing Function Participant, as the case may be, such party shall provide, an
annual statement of compliance pursuant to this Section 3.16 or to such
applicable agreement, as the case may be, notwithstanding any such termination,
assignment or resignation.

     Section 3.17 Reports on Assessment of Compliance and Attestation.

     (a) Not later than March 1 of each calendar year (other than the calendar
year during which the Closing Date occurs) each Servicer at its own expense,
shall furnish, and shall cause any Servicing Function Participant engaged by it
to furnish (unless in the case of a Subcontractor, such Servicer has notified
the Depositor and the Master Servicer in writing that such compliance statement
is not required for the Subcontractor) to the Master Servicer, the Securities
Administrator and the Depositor an officer's assessment of its compliance with
the Relevant Servicing Criteria during the preceding calendar year as required
by Rules 13a-18 and 15d-18 of the Exchange Act and Item 1122 of Regulation AB
(the "Assessment of Compliance"), which assessment shall contain (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 3.18, 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, which assessment shall be based on
the activities it performs with respect to asset-backed securities transactions
taken as a whole involving such party that are backed by the same asset type as
the Mortgage Loans, 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.

                                      -74-

<PAGE>

     By March 1 (with a ten-calendar day cure period) of each year, commencing
in March 2007, the Master Servicer, the Securities Administrator and the
Custodian each at its own expense, shall furnish or otherwise make available,
and each such party and the Trustee 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 Sections
3.18(h), (i), (j) and (k), 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.

     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, the Custodian and the Trustee shall
each 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 Administrator are the same Person). When the
Master Servicer, and the Securities Administrator (or any Servicing Function
Participant engaged by them or the Trustee) submit their assessments to the
Securities Administrator, such parties will also at such time include the
assessment and attestation pursuant to this Section 3.17 of each Servicing
Function Participant engaged by it.

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

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

     In the event the Master Servicer, the Securities Administrator or any
Servicing Function Participant engaged by any such party or the Trustee is
terminated, assigns its rights and obligations under or resigns pursuant to the
terms of this Agreement, or any other applicable agreement, as the case may be,
such party shall provide, an assessment of compliance pursuant to this Section
3.17, coupled with an attestation as required in this Section 3.17, or such
applicable agreement notwithstanding any such termination, assignment or
resignation.

                                      -75-

<PAGE>

     (b) Not later than March 1 of each calendar year (other than the calendar
year during which the Closing Date occurs) each Servicer at its own expense,
shall cause, and shall cause any Servicing Function Participant engaged by it to
cause (unless in the case of a Subcontractor, such Servicer has notified the
Depositor and the Master Servicer in writing that such report is not required
for the Subcontractor) a nationally or regionally recognized firm of independent
registered public accountants (who may also render other services to such
Servicer, the Master Servicer or any affiliate thereof) which is a member of the
American Institute of Certified Public Accountants to furnish a report (the
"Accountant's Attestation") to the Master Servicer, 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 Public Company
Accounting Oversight Board, 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. Such Accountant's 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.

     By March 1 (with a ten-calendar day cure period) of each year, commencing
in March 2007, the Master Servicer, the Securities Administrator and the
Custodian, each at its own expense, shall cause, and each such party and the
Trustee 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 Trustee, 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 Public Company Accounting
Oversight Board, 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.

     (c) Promptly after receipt of each assessment of compliance and attestation
report, the Securities Administrator shall confirm that each assessment
submitted pursuant to Section 3.17(a) is coupled with an attestation meeting the
requirements of Section 3.17(b) and notify the Depositor of any exceptions.

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

                                      -76-

<PAGE>

     In the event the Master Servicer, the Securities Administrator, the
Custodian, any Servicer or any Servicing Function Participant engaged by any
such party, is terminated, assigns its rights and duties under, or resigns
pursuant to the terms of, this Agreement, or any applicable Custodial Agreement,
Servicing Agreement or sub-servicing agreement, as the case may be, such party
shall cause a registered public accounting firm to provide an attestation
pursuant to this Section 3.17, or such other applicable agreement,
notwithstanding any such termination, assignment or resignation.

     Section 3.18 Periodic Filings.

     (a) 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 Issuing Entity 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 8-K) ("Form 8-K Disclosure Information") shall be reported
by the parties set forth on Exhibit Q-3 to the Depositor and the Securities
Administrator and directed and approved by the Depositor, 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.

     (b) For so long as the Issuing Entity is subject to the reporting
requirements of the Exchange Act, following the occurrence of a Reportable Event
(A) each party listed on Exhibit Q-3 hereto shall use commercially reasonable
best efforts to provide immediate notice to the Master Servicer, the Securities
Administrator and the Depositor, by fax and by phone or by e-mail and by phone,
(B) each such party shall be required to provide to the Securities Administrator
and the Depositor, to the extent known, in EDGAR-compatible format or in such
other format as agreed upon by the Securities Administrator and such party, the
form and substance of any Form 8-K Disclosure Information if applicable,
together with the form set forth on Exhibit O (the "Additional Disclosure
Notification") by the close of business New York City time on the 2nd Business
Day following the occurrence of such Reportable Event and (C) the Depositor,
shall approve, as to form and substance, or disapprove, as the case may be, the
inclusion of the Form 8-K Disclosure Information on Form 8-K. The Securities
Administrator has no duty under this Agreement to monitor or enforce the
performance by the parties listed on Exhibit Q-3 of their duties under this
paragraph or proactively solicit or procure from such parties any 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.

     (c) 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, 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

                                      -77-

<PAGE>

proceed with the process for 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 3.18(n).

     (d) Promptly (but no later than one 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 prepared and filed by the
Securities Administrator. The parties to this Agreement acknowledge that the
performance by the Master Servicer and the Securities Administrator of its
duties under this Section 3.18 related to the timely preparation, execution and
filing of Form 8-K is contingent upon the other parties hereto strictly
observing all applicable deadlines in the performance of their duties under this
Section 3.18. The Depositor acknowledges that the performance by the Master
Servicer and the Securities Administrator of its duties under this Section 3.18
related to the timely preparation, execution and filing of Form 8-K is also
contingent upon the Servicers, the Custodian and any Servicing Function
Participant strictly observing deadlines no later than those set forth in this
paragraph that are applicable to the parties to this Agreement in the delivery
to the Securities Administrator of any necessary Form 8-K Disclosure Information
pursuant to the related Servicing Agreements, the Custodial Agreement or any
other applicable agreement. 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 8-K, where such failure results from the Securities
Administrator's inability or failure to obtain or receive, on a timely basis,
any information from any other party hereto or any Servicer, Custodian or
Servicing Function Participant needed to prepare, arrange for execution or file
such Form 8-K.

     (e) Within fifteen (15) days after each Distribution Date (subject to
permitted extensions under the Exchange Act), the Securities Administrator
shall, on behalf of the Issuing Entity and in accordance with industry
standards, prepare and file with the Commission via the Electronic Data
Gathering and Retrieval System (EDGAR), a Form 10-D with a copy of the Monthly
Statement for such Distribution Date as an exhibit 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 Q-1 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.

     (f) As set forth in Exhibit Q-1 hereto, for so long as the Issuing Entity
is subject to the reporting requirements of the Exchange Act, within five (5)
calendar days after the related Distribution Date (i) each party listed on
Exhibit Q-1 hereto shall be required to provide to the Depositor and the
Securities Administrator, to the extent known, in EDGAR-compatible format or in
such other format as 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, 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-D Disclosure on Form 10-D. The Securities
Administrator has no duty under this Agreement to monitor or enforce the
performance by the parties listed on Exhibit Q-1 of their duties under this
paragraph or

                                      -78-

<PAGE>

proactively solicit or procure from such parties any Additional Form 10-D
Disclosure Information. The Depositor will be responsible for any reasonable
fees and expenses incurred by the Securities Administrator in connection with
including any Additional Form 10-D Disclosure on Form 10-D pursuant to this
paragraph.

     (g) After preparing the Form 10-D, the Securities Administrator shall, upon
request, 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, 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
process for 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
3.18(n). Promptly (but not later than one 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 prepared and filed by the
Securities Administrator. Form 10-D 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 instructs the Securities Administrator, with respect to each
Form 10-D, to check "yes" for each item unless the Securities Administrator has
received timely prior written notice from the Depositor that the answer should
be "no" for an item. The parties to this Agreement acknowledge that the
performance by the Master Servicer and the Securities Administrator of its
respective duties under this Section 3.18 related to the timely preparation,
execution and filing of Form 10-D is contingent upon the other parties hereto
strictly observing all applicable deadlines in the performance of their duties
under this Section 3.18. The Depositor acknowledges that the performance by the
Master Servicer and the Securities Administrator of its duties under this
Section 3.18 related to the timely preparation, execution and filing of Form
10-D is also contingent upon the Servicers, the Custodian and any Servicing
Function Participant strictly observing deadlines no later than those set forth
in this paragraph that are applicable to the parties to this Agreement in the
delivery to the Securities Administrator of any necessary Additional Form 10-D
Disclosure pursuant to the related Servicing Agreements, the Custodial Agreement
or any other applicable agreement. Neither the Master Servicer nor the
Securities Administrator will 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-D resulting from the Securities
Administrator's inability or failure to obtain or receive any information needed
to prepare, arrange for execution or file such Form 10-D on a timely basis.

     (h) On or prior to the 90th calendar day after the end of the fiscal year
for the Issuing Entity 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 Issuing Entity ends on December 31st of each year) commencing in March 2007,
the Securities Administrator shall, on behalf of the Issuing Entity and in
accordance with industry standards, prepare and file with the Commission via

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<PAGE>

EDGAR a Form 10-K with respect to the Issuing Entity. Such Form 10-K shall
include the following items, in each case, as applicable, to the extent they
have been delivered to the Securities Administrator within the applicable time
frames set forth in this Agreement, the related Servicing Agreements and
Custodial Agreement: (i) an annual compliance statement for the Master Servicer,
each Servicer, the Securities Administrator and any Servicing Function
Participant engaged by any such party or the Trustee (together with the
Custodian, each a "Reporting Servicer"), as described in Section 3.16 of this
Agreement, the related Servicing Agreement and the Custodial Agreement;
provided, however, that the Securities Administrator, at its discretion, may
omit from the Form 10-K any annual compliance statement that is not required to
be filed with such Form 10-K pursuant to Regulation AB; (ii)(A) the annual
reports on assessment of compliance with Servicing Criteria for each Reporting
Servicer (unless the Depositor has determined that such compliance statement is
not required by Regulation AB), as described in Section 3.17 of this Agreement,
the related Servicing Agreement and the Custodial Agreement, and (B) if any
Reporting Servicer's report on assessment of compliance with Servicing Criteria
described in Section 3.17 identifies any material instance of noncompliance,
disclosure identifying such instance of noncompliance, or if any Reporting
Servicer's report on assessment of compliance with Servicing Criteria described
in Section 3.17 of this Agreement 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; provided, however, that the Securities Administrator, at
its discretion, may omit from the Form 10-K any assessment of compliance or
attestation report described in clause (iii) below that is not required to be
filed with such Form 10-K pursuant to Regulation AB; (iii)(A) the registered
public accounting firm attestation report for each Reporting Servicer, as
described in Section 3.17 of this Agreement, the related Servicing Agreement and
the Custodial Agreement, and (B) if any registered public accounting firm
attestation report described under Section 3.17 of this Agreement 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 in the form attached hereto as Exhibit L,
executed by the senior officer in charge of the master servicing function. Any
disclosure or information in addition to (i) through (iv) above that is required
to be included on Form 10-K ("Additional Form 10-K Disclosure") shall be
reported by the parties as set forth in Exhibit Q-2 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 or set forth in the next paragraph.

     (i) As set forth in Exhibit Q-2 hereto, no later than March 1 (with a ten
calendar day cure period) of each year that the Issuing Entity is subject to the
Exchange Act reporting requirements, commencing in March 2007, (i) the parties
listed on Exhibit Q-2 hereto shall be required to provide to the Depositor and
the Securities Administrator, to the extent known, in EDGAR-compatible format or
in such other format as 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. The Securities
Administrator has no duty under this Agreement to monitor or enforce the

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<PAGE>

performance by the parties listed on Exhibit Q-2 of their duties under this
paragraph or proactively solicit or procure from such parties any Additional
Form 10-K Disclosure Information. The Depositor will be responsible for any
reasonable fees and expenses incurred by the Securities Administrator in
connection with including any Additional Form 10-K Disclosure on Form 10-K
pursuant to this paragraph.

     (j) 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 no later than March 25th,
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, 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 process for 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 3.18(n). Promptly (but no later
than one 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 prepared and filed by the Securities Administrator. 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 instructs the
Securities Administrator, with respect to each Form 10-K, to check "yes" for
each item unless the Securities Administrator has received timely prior written
notice from the Depositor that the answer should be "no" for an item. The
parties to this Agreement acknowledge that the performance by the Master
Servicer and the Securities Administrator of its duties under this Section 3.18
related to the timely preparation, execution and filing of Form 10-K is
contingent upon such parties (and any Servicing Function Participant) strictly
observing all applicable deadlines in the performance of their duties under this
Section 3.18, Section 3.16 and Section 3.17. The Depositor acknowledges that the
performance by the Master Servicer and the Securities Administrator of its
duties under this Section 3.18 related to the timely preparation, execution and
filing of Form 10-K is also contingent upon the Servicers, the Custodian and any
Servicing Function Participant strictly observing deadlines no later than those
set forth in this paragraph that are applicable to the parties to this Agreement
in the delivery to the Securities Administrator of any necessary Additional Form
10-K Disclosure, any annual statement of compliance and any assessment of
compliance and attestation pursuant to the related Servicing Agreement, the
Custodial Agreement or any other applicable agreement. 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 resulting from the
Securities Administrator's inability or failure to obtain or receive any
information from any other party hereto or any Servicer, Custodian or Servicing
Function Participant needed to prepare, execute or file such Form 10-K.

     (k) Each Form 10-K shall include a Sarbanes-Oxley Certification, which
shall be in the form attached hereto as Exhibit L. Each Servicer shall sign and
provide, and each of the Servicers, the Master Servicer and the Securities
Administrator shall cause any Servicing

                                      -81-

<PAGE>

Function Participant engaged by it to sign and provide, to the person who signs
the Sarbanes-Oxley Certification (the "Certifying Person") by March 1 (with a
ten day cure period) of each year in which the Issuing Entity is subject to the
reporting requirements of the Exchange Act and otherwise within a reasonable
period of time upon request, a certification (a "Back-Up Certification") (in the
form attached hereto as Exhibit M) 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, the
"Certification Parties") can reasonably rely. The senior officer of the Master
Servicer in charge of the master servicing function shall serve as the
Certifying Person on behalf of the Trust. Such officer of the Certifying Person
can be contacted by e-mail at cts.sec.notifications@wellsfargo.com or by
facsimile at 410-715-2380. In the event any such party or Servicing Function
Participant engaged by any such party is terminated or resigns pursuant to the
terms of this Agreement, or any other applicable agreement, as the case may be,
such party shall provide a Back-Up Certification to the Master Servicer pursuant
to this Section 3.18 with respect to the period of time it was subject to this
Agreement or any other applicable agreement, as the case may be. Notwithstanding
the foregoing, (i) the Master Servicer and the Securities Administrator shall
not be required to deliver a Back-Up Certification to each other if both are the
same Person and the Master Servicer is the Certifying Person and (ii) the Master
Servicer shall not be obligated to sign the Sarbanes-Oxley Certification in the
event that it does not receive any Back-Up Certification required to be
furnished to it pursuant to this section or any Servicing Agreement or Custodial
Agreement.

     (l) The Securities Administrator shall have no responsibility to file any
items with the Commission other than those specified in this section and the
Master Servicer shall execute any and all Form 10-Ds, 8-Ks and 10-Ks required
hereunder.

     (m) On or prior to January 30 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 Issuing Entity under
the Exchange Act.

     (n) In the event that the Securities Administrator is unable to timely file
with the Commission all or any required portion of any Form 8-K, 10-D or 10-K
required to be filed by this Agreement because required disclosure information
was either not delivered to it or delivered to it after the delivery deadlines
set forth in this Agreement or for any other reason, the Securities
Administrator will promptly notify electronically the Depositor of such
inability to make a timely filing with the Commission. 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-D/A and 10K/A, 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 succeeding Form 10-D to be filed for the Issuing Entity. In the event
that any previously filed Form 8-K, 10-D or 10-K needs to be amended, in
connection with any Additional Form 10-D Disclosure (other than, in the case of
Form 10-D, for the purpose of restating any Monthly Statement), Additional Form
10-K Disclosure or Form 8-K Disclosure Information, the Securities Administrator
will electronically notify the Depositor and such other parties to the
transaction as are affected by such amendment, and such parties will cooperate
to prepare any necessary 8-K/A, 10-D/A or 10-K/A. Any Form 15, Form 12b-25 or
any amendment to Form 8-

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<PAGE>

K, 10-D or 10-K shall be signed by duly authorized representative or a senior
officer in charge of master servicing, as applicable, of the Master Servicer.
The parties to this Agreement acknowledge that the performance by the Master
Servicer of its duties under this Section 3.18 related to the timely
preparation, execution and filing of Form 15, a Form 12b-25 or any amendment to
Form 8-K, 10-D or 10-K is contingent upon each such party performing its duties
under this Section. 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
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 or any Servicer, any Custodian or any Servicing Function Participant
needed to prepare, arrange for execution or file such Form 15, Form 12b-25 or
any amendments to Forms 8-K, 10-D or 10-K.

     (o) The Depositor and the Securities Administrator agree to use their good
faith efforts to cooperate in complying with the requirements of this Section
3.18.

     (p) Each of the parties agrees to provide to the Securities Administrator
such additional information related to such party as the Securities
Administrator may reasonably request, including evidence of the authorization of
the person signing any certificate or statement, financial information and
reports, and such other information related to such party or its performance
hereunder.

     (q) Any notice or notification required to be delivered by the Securities
Administrator or Master Servicer to the Depositor pursuant to this Section 3.18,
may be delivered via facsimile to (212) 449-2700, via email to paul_park@ml.com
or telephonically by calling Paul Park at (212) 449-6380.

     Section 3.19 Compliance with Regulation AB. Each of the parties hereto
acknowledges and agrees that the purpose of Sections 3.16, 3.17 and 3.18 is to
facilitate compliance by the Depositor with the provisions of Regulation AB, as
such may be amended or clarified from time to time. Therefore, each of the
parties agrees that the parties' obligations hereunder will be supplemented and
modified as necessary to be consistent with any such amendments, interpretive
advice or guidance, convention or consensus among active participants in the
asset-backed securities markets, advice of counsel, or otherwise in respect of
the requirements of Regulation AB and the parties shall comply with requests
made by the Depositor for delivery of additional or different information as the
Depositor may determine in good faith is necessary to comply with the provisions
of Regulation AB. Any such supplementation or modification shall be made in
accordance with Section 11.02 without the consent of the Certificateholders, and
may result in a change in the reports filed by the Securities Administrator on
behalf of the Issuing Entity under the Exchange Act.

                                      -83-

<PAGE>

                                   ARTICLE IV
                                    ACCOUNTS

     Section 4.01 Protected Accounts.

     (a) The Master Servicer shall enforce the obligation of each Servicer to
establish and maintain a Protected Account in accordance with the applicable
Servicing Agreement, with records to be kept with respect thereto on a Mortgage
Loan by Mortgage Loan basis, into which accounts shall be deposited within two
Business Days (or as of such other time specified in the related Servicing
Agreement) of receipt all collections of principal and interest on any Mortgage
Loan and with respect to any REO Property received by a Servicer, including
Principal Prepayments, Insurance Proceeds, Liquidation Proceeds, Subsequent
Recoveries and advances made from the Servicer's own funds (less servicing
compensation as permitted by the applicable Servicing Agreement in the case of
the Servicer) and all other amounts to be deposited in the Protected Account.
The Servicer is hereby authorized to make withdrawals from and deposits to the
related Protected Account for purposes required or permitted by this Agreement.
To the extent provided in the related Servicing Agreement, the Protected Account
shall be held in a Designated Depository Institution and segregated on the books
of such institution in the name of the Trustee for the benefit of
Certificateholders.

     (b) To the extent provided in the related Servicing Agreement, amounts on
deposit in a Protected Account may be invested in Permitted Investments in the
name of the Trustee for the benefit of Certificateholders and, except as
provided in the preceding paragraph, not commingled with any other funds, such
Permitted Investments to mature, or to be subject to redemption or withdrawal,
no later than the date on which such funds are required to be withdrawn for
deposit in the Master Servicer Collection Account, and shall be held until
required for such deposit. The income earned from Permitted Investments made
pursuant to this Section 4.01 shall be paid to the related Servicer under the
applicable Servicing Agreement, and the risk of loss of moneys required to be
distributed to the Certificateholders resulting from such investments shall be
borne by and be the risk of the related Servicer, as set forth in the applicable
Servicing Agreement. The related Servicer (to the extent provided in the related
Servicing Agreement) shall deposit the amount of any such loss in the Protected
Account within two Business Days of receipt of notification of such loss but not
later than the second Business Day prior to the Distribution Date on which the
moneys so invested are required to be distributed to the Certificateholders.

     (c) To the extent provided in the related Servicing Agreement and subject
to this Article IV, on or before each Servicer Remittance Date, the related
Servicer shall withdraw or shall cause to be withdrawn from the Protected
Accounts and shall immediately deposit or cause to be deposited in the Master
Servicer Collection Account amounts representing the following collections and
payments (other than with respect to principal of or interest on the Mortgage
Loans due on or before the Cut-off Date) with respect to each Loan Group:

          (i) Monthly Payments on the Mortgage Loans received or any related
     portion thereof advanced by such Servicer pursuant to the related Servicing
     Agreement which were due on or before the related Due Date, net of the
     amount thereof comprising the Servicing Fees;

                                      -84-

<PAGE>

          (ii) Principal Prepayments in Full and any Liquidation Proceeds
     received by such Servicer with respect to such Mortgage Loans in the
     related Prepayment Period, with interest to the date of prepayment or
     liquidation, net of the amount thereof comprising the Servicing Fees;

          (iii) Curtailments received by such Servicer for such Mortgage Loans
     in the related Prepayment Period; and

          (iv) Any amount to be used as a Monthly Advance.

     (d) Withdrawals by the Master Servicer may be made from an Account only to
make remittances as provided in Section 4.01(c), 4.02 and 4.03; to reimburse the
Master Servicer or a Servicer for Monthly Advances which have been recovered by
subsequent collection from the related Mortgagor; to remove amounts deposited in
error; to remove fees, charges or other such amounts deposited on a temporary
basis; or to clear and terminate the account at the termination of this
Agreement in accordance with Section 10.01. As provided in Sections 4.01(c) and
4.02(b) certain amounts otherwise due to the Servicers may be retained by them
as set forth in the related Servicing Agreements and need not be deposited in
the Master Servicer Collection Account.

     Section 4.02 Master Servicer Collection Account.

     (a) The Master Servicer shall establish and maintain in the name of the
Trustee, for the benefit of the Certificateholders, the Master Servicer
Collection Account as a segregated trust account or accounts. The Master
Servicer Collection Account may be a sub-account of the Distribution Account.
The Master Servicer will deposit in the Master Servicer Collection Account as
identified by the Master Servicer and as received by the Master Servicer, the
following amounts:

          (i) Any amounts withdrawn from a Protected Account or other permitted
     account;

          (ii) Any Monthly Advance and any Compensating Interest Payments;

          (iii) Any Insurance Proceeds, Liquidation Proceeds or Subsequent
     Recoveries received by or on behalf of the Master Servicer or which were
     not deposited in a Protected Account or other permitted account;

          (iv) The repurchase price with respect to any Mortgage Loans
     repurchased and all proceeds of any Mortgage Loans or property acquired in
     connection with the optional termination of the trust;

          (v) Any amounts required to be deposited with respect to losses on
     investments of deposits in an Account; and

          (vi) Any other amounts received by or on behalf of the Master Servicer
     and required to be deposited in the Master Servicer Collection Account
     pursuant to this Agreement.

                                      -85-

<PAGE>

     (b) All amounts deposited to the Master Servicer Collection Account shall
be held by the Master Servicer in the name of the Trustee in trust for the
benefit of the Certificateholders in accordance with the terms and provisions of
this Agreement. The requirements for crediting the Master Servicer Collection
Account or the Distribution Account shall be exclusive, it being understood and
agreed that, without limiting the generality of the foregoing, payments in the
nature of (i) prepayment or late payment charges or assumption, tax service,
statement account or payoff, substitution, satisfaction, release and other like
fees and charges and (ii) the items enumerated in Subsections 4.05(a)(i), (ii),
(iii), (iv), (vi), (vii), (viii), (ix), (xi) and (xii) with respect to the
Securities Administrator, need not be credited by the Master Servicer or the
related Servicer to the Distribution Account or the Master Servicer Collection
Account, as applicable. In the event that the Master Servicer shall deposit or
cause to be deposited to the Distribution Account any amount not required to be
credited thereto, the Securities Administrator, upon receipt of a written
request therefor signed by a Servicing Officer of the Master Servicer, shall
promptly transfer such amount to the Master Servicer from the Distribution
Account, any provision herein to the contrary notwithstanding.

     (c) The amount at any time credited to the Master Servicer Collection
Account shall be invested, in the name of the Trustee, or its nominee, for the
benefit of the Certificateholders, in Permitted Investments as directed by
Master Servicer. All Permitted Investments shall mature or be subject to
redemption or withdrawal on or before, and shall be held until, the next
succeeding Distribution Account Deposit Date. Any and all investment earnings on
amounts on deposit in the Master Servicer Collection Account from time to time
shall be for the account of the Master Servicer. The Master Servicer from time
to time shall be permitted to withdraw or receive distribution of any and all
investment earnings from the Master Servicer Collection Account. The risk of
loss of moneys required to be distributed to the Certificateholders resulting
from such investments shall be borne by and be the risk of the Master Servicer.
The Master Servicer shall deposit the amount of any such loss in the Master
Servicer Collection Account within two Business Days of receipt of notification
of such loss but not later than the second Business Day prior to the
Distribution Date on which the moneys so invested are required to be distributed
to the Certificateholders.

     Section 4.03 Permitted Withdrawals and Transfers from the Master Servicer
Collection Account.

     (a) The Master Servicer will, from time to time on demand of the Master
Servicer, the Trustee or the Securities Administrator, make or cause to be made
such withdrawals or transfers from the Master Servicer Collection Account as the
Master Servicer has designated for such transfer or withdrawal pursuant to the
Servicing Agreements. The Master Servicer may clear and terminate the Master
Servicer Collection Account pursuant to Section 10.01 and remove amounts from
time to time deposited in error.

     (b) On an ongoing basis, the Master Servicer shall withdraw from the Master
Servicer Collection Account (i) any expenses recoverable by the Trustee, the
Master Servicer or the Securities Administrator pursuant to this Agreement,
including but not limited to Sections 2.01(b), 3.03, 7.04 and 9.05 and (ii) any
amounts payable to the Master Servicer as set forth in Section 3.14.

                                      -86-

<PAGE>

     (c) In addition, on or before each Distribution Account Deposit Date, the
Master Servicer shall deposit in the Distribution Account (or remit to the
Securities Administrator for deposit therein) any Monthly Advances required to
be made by the Master Servicer with respect to the Mortgage Loans.

     (d) No later than 3:00 p.m. New York time on each Distribution Account
Deposit Date, the Master Servicer will transfer all Available Funds on deposit
in the Master Servicer Collection Account with respect to the related
Distribution Date to the Securities Administrator for deposit in the
Distribution Account.

     Section 4.04 Distribution Account.

     (a) The Securities Administrator shall establish and maintain in the name
of the Trustee, for the benefit of the Certificateholders, the Distribution
Account as a segregated trust account or accounts.

     (b) All amounts deposited to the Distribution Account shall be held by the
Securities Administrator in the name of the Trustee in trust for the benefit of
the Certificateholders in accordance with the terms and provisions of this
Agreement.

     (c) The Distribution Account shall constitute a trust account of the Trust
Fund segregated on the books of the Securities Administrator and held by the
Securities Administrator in trust in its Corporate Trust Office, and the
Distribution Account and the funds deposited therein shall not be subject to,
and shall be protected to the maximum extent permitted by applicable law from,
all claims, liens, and encumbrances of any creditors or depositors of the
Securities Administrator, the Trustee or the Master Servicer (whether made
directly, or indirectly through a liquidator or receiver of the Securities
Administrator, the Trustee or the Master Servicer). The Distribution Account
shall be an Eligible Account. The amount at any time credited to the
Distribution Account shall be (i) fully insured by the FDIC to the maximum
coverage provided thereby or (ii) invested in the name of the Trustee, in such
Permitted Investments selected by the Master Servicer or deposited in demand
deposits with such depository institutions as selected by the Master Servicer,
provided that time deposits of such depository institutions would be a Permitted
Investment. All Permitted Investments shall mature or be subject to redemption
or withdrawal on or before, and shall be held until, the next succeeding
Distribution Date if the obligor for such Permitted Investment is the Master
Servicer or, if such obligor is any other Person, the Business Day preceding
such Distribution Date. All investment earnings on amounts on deposit in the
Distribution Account or benefit from funds uninvested therein from time to time
shall be for the account of the Securities Administrator. The Securities
Administrator shall be permitted to withdraw or receive distribution of any and
all investment earnings from the Distribution Account on each Distribution Date.
If there is any loss on a Permitted Investment or demand deposit, the Securities
Administrator shall deposit such amount in the Distribution Account. With
respect to the Distribution Account and the funds deposited therein, the
Securities Administrator shall take such action as may be necessary to ensure
that the Certificateholders shall be entitled to the priorities afforded to such
a trust account (in addition to a claim against the estate of the Trust) as
provided by 12 U.S.C. Section 92a(e), and applicable regulations pursuant
thereto, if applicable, or any applicable comparable state statute applicable to
state chartered banking corporations.

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<PAGE>

     Section 4.05 Permitted Withdrawals and Transfers from the Distribution
Account.

     (a) The Securities Administrator will, from time to time on demand of the
Master Servicer, make or cause to be made such withdrawals or transfers from the
Distribution Account as the Master Servicer has designated for such transfer or
withdrawal pursuant to the Servicing Agreements for the following purposes
(limited in the case of amounts due the Master Servicer to those not withdrawn
from the Master Servicer Collection Account in accordance with the terms of this
Agreement):

          (i) to reimburse the Master Servicer or any Servicer for any Monthly
     Advance of its own funds or any advance of such Servicer's own funds, the
     right of the Master Servicer or a Servicer to reimbursement pursuant to
     this subclause (i) being limited to amounts received on a particular
     Mortgage Loan (including, for this purpose, the Purchase Price therefor,
     Insurance Proceeds and Liquidation Proceeds) which represent late payments
     or recoveries of the principal of or interest on such Mortgage Loan
     respecting which such Monthly Advance or advance was made;

          (ii) to reimburse the Master Servicer or any Servicer from Insurance
     Proceeds or Liquidation Proceeds relating to a particular Mortgage Loan for
     amounts expended by the Master Servicer or such Servicer in good faith as a
     Servicing Advance in connection with the restoration of the related
     Mortgaged Property which was damaged by an Uninsured Cause or in connection
     with the liquidation of such Mortgage Loan;

          (iii) to reimburse the Master Servicer or any Servicer from Insurance
     Proceeds relating to a particular Mortgage Loan for insured expenses
     incurred with respect to such Mortgage Loan and to reimburse the Master
     Servicer or such Servicer from Liquidation Proceeds from a particular
     Mortgage Loan for Liquidation Expenses incurred with respect to such
     Mortgage Loan; provided that the Master Servicer shall not be entitled to
     reimbursement for Liquidation Expenses with respect to a Mortgage Loan to
     the extent that (i) any amounts with respect to such Mortgage Loan were
     paid as Excess Liquidation Proceeds pursuant to clause (xi) of this
     Subsection 4.03 (a) to the Master Servicer; and (ii) such Liquidation
     Expenses were not included in the computation of such Excess Liquidation
     Proceeds;

          (iv) to pay the Master Servicer or any Servicer, as appropriate, from
     Liquidation Proceeds or Insurance Proceeds received in connection with the
     liquidation of any Mortgage Loan, the amount which it or such Servicer
     would have been entitled to receive under subclause (ix) of this Subsection
     4.03(a) as servicing compensation on account of each defaulted scheduled
     payment on such Mortgage Loan if paid in a timely manner by the related
     Mortgagor;

          (v) to pay the Master Servicer or any Servicer from the Purchase Price
     for any Mortgage Loan, the amount which it or such Servicer would have been
     entitled to receive under subclause (ix) of this Subsection 4.03 (a) as
     servicing compensation;

          (vi) to reimburse the Master Servicer or any Servicer for advances of
     funds pursuant to Sections, and the right to reimbursement pursuant to this
     subclause being

                                      -88-

<PAGE>

     limited to amounts received on the related Mortgage Loan (including, for
     this purpose, the Purchase Price therefor, Insurance Proceeds and
     Liquidation Proceeds) which represent late recoveries of the payments for
     which such advances were made;

          (vii) to reimburse the Master Servicer or any Servicer for any Monthly
     Advance or advance, after a Realized Loss has been allocated with respect
     to the related Mortgage Loan if the Monthly Advance or advance has not been
     reimbursed pursuant to clauses (i) and (vi);

          (viii) to pay the Master Servicer as set forth in Section 3.14;

          (ix) to reimburse the Master Servicer for expenses, costs and
     liabilities incurred by and reimbursable to it pursuant to this Agreement,
     including but not limited to Sections 3.03, 7.04(c) and (d);

          (x) to pay to the Master Servicer, as additional servicing
     compensation, any Excess Liquidation Proceeds to the extent not retained by
     the related Servicer;

          (xi) to reimburse or pay any Servicer any such amounts as are due
     thereto under the applicable Servicing Agreement and have not been retained
     by or paid to the Servicer, to the extent provided in the related Servicing
     Agreement;

          (xii) to reimburse the Trustee or the Securities Administrator for
     expenses, costs and liabilities incurred by or reimbursable to it pursuant
     to this Agreement;

          (xiii) to remove amounts deposited in error; and

          (xiv) to clear and terminate the Distribution Account pursuant to
     Section 9.01.

     (b) The Master Servicer shall keep and maintain separate accounting, on a
Mortgage Loan by Mortgage Loan basis, for the purpose of accounting for any
reimbursement from the Distribution Account pursuant to subclauses (i) through
(vi), inclusive, and (viii) or with respect to any such amounts which would have
been covered by such subclauses had the amounts not been retained by the Master
Servicer without being deposited in the Distribution Account under Section
4.02(b).

     (c) On each Distribution Date, the Securities Administrator shall
distribute the Available Funds for each Loan Group to the Holders of the
Certificates in accordance with Section 6.01.

                                   ARTICLE V
                                  CERTIFICATES

     Section 5.01 The Certificates. The Certificates shall be executed by manual
or facsimile signature on behalf of the Securities Administrator by an
authorized officer. Certificates bearing the manual or facsimile signatures of
individuals who were, at the time when such signatures were affixed, authorized
to sign on behalf of the Securities Administrator shall bind the Issuing Entity,
notwithstanding that such individuals or any of them have ceased to be so

                                      -89-

<PAGE>

authorized prior to the authentication and delivery of such Certificates or did
not hold such offices at the date of such authentication and delivery. 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 set forth as attached hereto executed
by the Securities Administrator by manual signature, and such certificate of
authentication upon any Certificate 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. On
the Closing Date, the Securities Administrator shall authenticate the
Certificates to be issued at the written direction of the Depositor, or any
Affiliate thereof.

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

     (a) The Securities Administrator shall maintain, or cause to be maintained
in accordance with the provisions of Section 5.09 hereof, a Certificate Register
for the Trust Fund in which, subject to the provisions of subsections (b) and
(c) below and to such reasonable regulations as it may prescribe, the Securities
Administrator shall provide for the registration of Certificates and of
Transfers and exchanges of Certificates as herein provided. Upon surrender for
registration of Transfer of any Certificate, the Securities Administrator shall
authenticate and deliver, in the name of the designated transferee or
transferees, one or more new Certificates of the same Class and of like
aggregate Percentage Interest.

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

     No service charge to the Certificateholders shall be made for any
registration of Transfer or exchange of Certificates, but payment of a sum
sufficient to cover any tax or governmental charge that may be imposed in
connection with any Transfer or exchange of Certificates may be required. All
Certificates surrendered for registration of Transfer or exchange shall be
canceled and subsequently destroyed by the Securities Administrator in
accordance with such Securities Administrator's customary procedures.

     (b) No Transfer of a Class B or Class A-R Certificate shall be made unless
such Transfer is made pursuant to an effective registration statement under the
Securities Act and any applicable state securities laws or is exempt from the
registration requirements under the Securities Act and such state securities
laws. In the event that a Transfer is to be made in reliance upon an exemption
from the Securities Act and such laws, in order to assure compliance with the
Securities Act and such laws, the Certificateholder desiring to effect such
Transfer and such Certificateholder's prospective transferee shall (except with
respect to the initial transfer of a Class B or Class A-R Certificate by Merrill
Lynch & Co.) each certify to each Securities Administrator in writing the facts
surrounding the Transfer in substantially the form set forth in

                                      -90-

<PAGE>

Exhibit F-1 (the "Transferor Representation Letter") and (i) deliver a letter in
substantially the form of either Exhibit F-2 (the "Investor Representation
Letter") or Exhibit F-3 (the "Rule 144A Letter") or (ii) there shall be
delivered to the Securities Administrator an Opinion of Counsel that such
Transfer may be made pursuant to an exemption from the Securities Act, which
Opinion of Counsel shall not be an expense of the Depositor or the Securities
Administrator. The Depositor shall provide to any Holder of a Class B or Class
A-R Certificate and any prospective transferee designated by any such Holder,
information regarding the related Certificates and the Mortgage Loans and such
other information as shall be necessary to satisfy the condition to eligibility
set forth in Rule 144A(d)(4) for Transfer of any such Certificate without
registration thereof under the Securities Act pursuant to the registration
exemption provided by Rule 144A. The Securities Administrator shall cooperate
with the Depositor in providing the Rule 144A information referenced in the
preceding sentence, including providing to the Depositor such information in the
possession of the Securities Administrator regarding the Certificates, the
Mortgage Loans and other matters regarding the Trust Fund as the Depositor shall
reasonably request to meet its obligation under the preceding sentence. Each
Holder of a Class B or Class A-R Certificate desiring to effect such Transfer
shall, and does hereby agree to, indemnify the Depositor 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 an ERISA Restricted Certificate or a Class A-R Certificate
will be registered unless the Securities Administrator has received (A) a
representation to the effect that such transferee is not an employee benefit
plan subject to Title I of ERISA, a plan subject to Section 4975 of the Code or
a plan subject to any state, local, federal, non-U.S. or other law substantively
similar to the foregoing provisions of ERISA or the Code ("Similar Law")
(collectively, a "Plan"), and is not directly or indirectly acquiring such
Certificate for, on behalf of, or with any assets of any such Plan, or (B)
solely in the case of an ERISA Restricted Certificate (I) if the Certificate has
been the subject of an ERISA-Qualifying Underwriting, a representation to the
effect that such transferee is an insurance company that is acquiring the
Certificate with assets contained in an "insurance company general account," as
defined in Section V(e) of Prohibited Transaction Class Exemption ("PTCE")
95-60, and the acquisition and holding of the Certificate are covered and exempt
under Sections I and III of PTCE 95-60, or (II) solely in the case of a
Definitive Certificate, an Opinion of Counsel satisfactory to the Securities
Administrator, and upon which the Securities Administrator shall be entitled to
rely, to the effect that the acquisition and holding of such Certificate will
not constitute or result in a nonexempt prohibited transaction under Title I of
ERISA or Section 4975 of the Code, or a violation of Similar Law, and will not
subject the Securities Administrator, the Master Servicer, the Trustee or the
Depositor to any obligation in addition to those expressly undertaken in this
Agreement, which Opinion of Counsel shall not be an expense of the Securities
Administrator, the Master Servicer, the Trustee or the Depositor.

     Except in the case of a Definitive Certificate, the representations set
forth in the immediately preceding paragraph of this Subsection 5.02(b), other
than clause (B)(II) in the immediately preceding paragraph, shall be deemed to
have been made to the Securities Administrator by the transferee's acceptance of
an ERISA Restricted Certificate or a Class A-R Certificate (or the acceptance by
a Certificate Owner of the beneficial interest in any Class of ERISA Restricted
Certificates or a Class A-R Certificate).

                                      -91-

<PAGE>

     Notwithstanding any other provision herein to the contrary, any purported
transfer of an ERISA Restricted Certificate or a Class A-R Certificate to or on
behalf of a Plan without the delivery to the Securities Administrator of a
representation or an Opinion of Counsel satisfactory to the Securities
Administrator as described above shall be void and of no effect. The Securities
Administrator shall not be under any liability to any Person for any
registration or transfer of any ERISA Restricted Certificate or Class A-R
Certificate that is in fact not permitted by this Section 5.02(b), nor shall the
Trustee or the Securities Administrator be under any liability for making any
payments due on such Certificate to the Holder thereof or taking any other
action with respect to such Holder under the provisions of this Agreement so
long as the transfer was registered by the Securities Administrator in
accordance with the foregoing requirements. The Trustee or the Securities
Administrator shall be entitled, but not obligated, to recover from any Holder
of any ERISA Restricted Certificate or Class A-R Certificate that was in fact a
Plan and that held such Certificate in violation of this Section 5.02(b) all
payments made on such ERISA Restricted Certificate or a Class A-R Certificate at
and after the time it commenced such holding. Any such payments so recovered
shall be paid and delivered to the last preceding Holder of such Certificate
that is not a Plan.

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

          (i) Each Person holding or acquiring any Ownership Interest in a Class
     A-R 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.

          (ii) No Ownership Interest in a Class A-R Certificate may be
     purchased, transferred or sold, directly or indirectly, except in
     accordance with the provisions hereof. No Ownership Interest in a Class A-R
     Certificate may be registered on the Closing Date or thereafter
     transferred, and the Securities Administrator shall not register the
     Transfer of any Class A-R Certificate unless, in addition to the
     certificates required to be delivered to the Securities Administrator under
     subparagraph (b) above, the Securities Administrator shall have been
     furnished with an affidavit (a "Transferee's Letter") of the initial owner
     or the proposed transferee in the form attached hereto as Exhibit E-1 and
     an affidavit (a "Transferor Certificate") of the proposed transferor in the
     form attached hereto as Exhibit E-2. In the absence of a contrary
     instruction from the transferor of a Class A-R Certificate, declaration
     (11) in Appendix A of the Transferee's Letter may be left blank. If the
     transferor requests by written notice to the Securities Administrator prior
     to the date of the proposed transfer that one of the two other forms of
     declaration (11) in Appendix A of the Transferee's Letter be used, then the
     requirements of this Section 5.02(c)(ii) shall not have been satisfied
     unless the Transferee's Letter includes such other form of declaration.

          (iii) Each Person holding or acquiring any Ownership Interest in a
     Class A-R Certificate shall agree (A) to obtain a Transferee's Letter from
     any other Person to whom such Person attempts to Transfer its Ownership
     Interest in a Class A-R Certificate, (B) to obtain a Transferee's Letter
     from any Person for whom such Person is acting as nominee,

                                      -92-

<PAGE>

     trustee or agent in connection with any Transfer of a Class A-R Certificate
     and (C) not to Transfer its Ownership Interest in a Class A-R Certificate
     or to cause the Transfer of an Ownership Interest in a Class A-R
     Certificate to any other Person if it has actual knowledge that such Person
     is not a Permitted Transferee. Further, no transfer, sale or other
     disposition of any Ownership Interest in a Class A-R Certificate may be
     made to a person who is not a U.S. Person (within the meaning of Section
     7701 of the Code) unless such person furnishes the transferor and the
     Securities Administrator with a duly completed and effective Internal
     Revenue Service Form W-8ECI (or any successor thereto) and the Securities
     Administrator consents to such transfer, sale or other disposition in
     writing.

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

          (v) At the option of the Holder of the Class A-R Certificate, the
     Class LT1-R Interest and the Residual Interest may be severed and
     represented by separate certificates; provided, however, that such separate
     certification may not occur until the Securities Administrator receives a
     REMIC Opinion to the effect that separate certification in the form and
     manner proposed would not result in the imposition of federal tax upon the
     Issuing Entity or any of the REMICs provided for herein or cause any of the
     REMICs provided for herein to fail to qualify as a REMIC; and provided
     further, that the provisions of Sections 5.02(b) and (c) will apply to each
     such separate certificate as if the separate certificate were a Class A-R
     Certificate. If, as evidenced by a REMIC Opinion, it is necessary to
     preserve the REMIC status of any of the REMICs provided for herein, the
     Class LT1-R Interest and the Residual Interest shall be severed and
     represented by separate Certificates.

     The restrictions on Transfers of a Class A-R Certificate set forth in this
Section 5.02(c) shall cease to apply (and the applicable portions of the legend
on a Class A-R Certificate may be deleted) with respect to Transfers occurring
after delivery to the Securities Administrator of an Opinion of Counsel, which
Opinion of Counsel shall not be an expense of the Securities

                                      -93-

<PAGE>

Administrator or the Depositor, to the effect that the elimination of such
restrictions will not cause any of the REMICs provided for herein to fail to
qualify as a REMIC at any time that the Certificates are outstanding or result
in the imposition of any tax on the Issuing Entity, any REMIC provided for
herein, a Certificateholder or another Person. Each Person holding or acquiring
any Ownership Interest in a Class A-R Certificate hereby consents to any
amendment of this Agreement that, based on an Opinion of Counsel furnished to
the Securities Administrator, is reasonably necessary (a) to ensure that the
record ownership of, or any beneficial interest in, a Class A-R Certificate is
not transferred, directly or indirectly, to a Person that is not a Permitted
Transferee and (b) to provide for a means to compel the Transfer of a Class A-R
Certificate that is held by a Person that is not a Permitted Transferee to a
Holder that is a Permitted Transferee.

     (d) The transferor of the Class A-R Certificate shall notify the Securities
Administrator in writing upon the transfer of the Class A-R Certificate.

     (e) The preparation and delivery of all certificates, opinions and other
writings referred to above in this Section 5.02 shall not be an expense of the
Issuing Entity, the Depositor or the Securities Administrator.

     Section 5.03 Mutilated, Destroyed, Lost or Stolen Certificates. If (a) 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
(b) there is delivered to the Securities Administrator such security or
indemnity as may be required by them to save each of them harmless, then, in the
absence of notice to the Securities Administrator that such Certificate has been
acquired by a bona fide 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 like Class, tenor
and Percentage Interest. In connection with the issuance of any new Certificate
under this Section 5.03, 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 5.03 shall constitute complete and
indefeasible evidence of ownership in the Trust Fund, as if originally issued,
whether or not the lost, stolen or destroyed Certificate shall be found at any
time. All Certificates surrendered to the Securities Administrator under the
terms of this Section 5.03 shall be canceled and destroyed by the Securities
Administrator in accordance with its standard procedures without liability on
its part.

     Section 5.04 Persons Deemed Owners. The Securities Administrator and any
agent of the Securities Administrator may treat the Person in whose name any
Certificate is registered as the owner of such Certificate for the purpose of
receiving distributions as provided in this Agreement and for all other purposes
whatsoever, and neither the Securities Administrator, nor any agent of the
Securities Administrator shall be affected by any notice to the contrary.

     Section 5.05 Access to List of Certificateholders' Names and Addresses. If
three or more Certificateholders (a) request such information in writing from
the Securities Administrator, (b) state that such Certificateholders desire to
communicate with other

                                      -94-

<PAGE>

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

     Section 5.06 Book-Entry Certificates. The Regular Certificates, upon
original issuance, shall be issued in the form of one or more typewritten
Certificates representing the Book-Entry Certificates, to be delivered to the
Depository by or on behalf of the Depositor. The Book-Entry Certificates shall
initially be registered on the Certificate Register in the name of the
Depository or its nominee, and no Certificate Owner of a Book-Entry Certificate
will receive a definitive certificate representing such Certificate Owner's
interest in such Certificates, except as provided in Section 5.08. Unless and
until definitive, fully registered Certificates ("Definitive Certificates") have
been issued to the Certificate Owners of the Book-Entry Certificates pursuant to
Section 5.08:

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

     (b) the Depositor and the Securities Administrator may deal with the
Depository and the Depository Participants for all purposes (including the
making of distributions) as the authorized representative of the respective
Certificate Owners of the Book-Entry Certificates;

     (c) registration of the Book-Entry Certificates may not be transferred by
the Securities Administrator except to another Depository;

     (d) the rights of the respective Certificate Owners of the Book-Entry
Certificates shall be exercised only through the Depository and the Depository
Participants and shall be limited to those established by law and agreements
between the Owners of the Book-Entry Certificates and the Depository and/or the
Depository Participants. Pursuant to the Depository Agreement, unless and until
Definitive Certificates are issued pursuant to Section 5.08, the Depository will
make book-entry transfers among the Depository Participants and receive and
transmit distributions of principal and interest on the related Certificates to
such Depository Participants;

     (e) the Depository may collect its usual and customary fees, charges and
expenses from its Depository Participants;

     (f) the Securities Administrator may rely and shall be fully protected in
relying upon information furnished by the Depository with respect to its
Depository Participants; and

     (g) to the extent that the provisions of this Section conflict with any
other provisions of this Agreement, the provisions of this Section shall
control.

                                      -95-

<PAGE>

     For purposes of any provision of this Agreement requiring or permitting
actions with the consent of, or at the direction of, Certificateholders
evidencing a specified percentage of the aggregate unpaid principal amount of
any Class of Certificates, such direction or consent may be given by Certificate
Owners (acting through the Depository and the Depository Participants) owning
Book-Entry Certificates evidencing the requisite percentage of principal amount
of such Class of Certificates.

     Section 5.07 Notices to Depository. Whenever any notice or other
communication is required to be given to Certificateholders of the Class with
respect to which Book-Entry Certificates have been issued, unless and until
Definitive Certificates shall have been issued to the related Certificate
Owners, the Securities Administrator shall give all such notices and
communications to the Depository.

     Section 5.08 Definitive Certificates. If, after Book-Entry Certificates
have been issued with respect to any Certificates, (a) the Depository or the
Depositor advises the Securities Administrator that the Depository is no longer
willing, qualified or able to discharge properly its responsibilities under the
Depository Agreement with respect to such Certificates and the Securities
Administrator or the Depositor is unable to locate a qualified successor, (b)
the Depositor notifies the Securities Administrator and the Depository of its
intent to terminate the book-entry system through the Depository and, upon
receipt of notice of such intent from the Depository, the Certificate Owners of
the Book-Entry Certificates agree to initiate such termination or (c) after the
occurrence and continuation of an Event of Default, Certificate Owners of such
Book-Entry Certificates having not less than 51% of the Voting Rights evidenced
by any Class of Book-Entry Certificates advise the Securities Administrator and
the Depository in writing through the Depository Participants that the
continuation of a book-entry system with respect to Certificates of such Class
through the Depository (or its successor) is no longer in the best interests of
the Certificate Owners of such Class, then the Securities Administrator shall
notify all Certificate Owners of such Book-Entry Certificates, through the
Depository, of the occurrence of any such event and of the availability of
Definitive Certificates to Certificate Owners of such Class requesting the same.
The Depositor shall provide the Securities Administrator with an adequate
inventory of certificates to facilitate the issuance and transfer of Definitive
Certificates. Upon surrender to the Securities Administrator of any such
Certificates by the Depository, accompanied by registration instructions from
the Depository for registration, the Securities Administrator shall authenticate
and deliver such Definitive Certificates. Neither the Depositor nor the
Securities Administrator shall be liable for any delay in delivery of such
instructions and each may conclusively rely on, and shall be protected in
relying on, such instructions. Upon the issuance of such 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 such Definitive Certificates as Certificateholders hereunder.

     Section 5.09 Maintenance of Office or Agency. The Securities Administrator
will maintain or cause to be maintained at its expense an office or offices or
agency or agencies where Certificates may be surrendered for registration of
transfer or exchange. The Securities Administrator initially designates its
offices at Sixth Street and Marquette Avenue, Minneapolis, Minnesota 55479,
Attention: Corporate Trust Services - Merrill Lynch Mortgage Investors

                                      -96-

<PAGE>

Trust, Series 2006-A3 as offices for such purposes. The Securities Administrator
will give prompt written notice to the Certificateholders of any change in such
location of any such office or agency.

                                   ARTICLE VI
                         PAYMENTS TO CERTIFICATEHOLDERS

     Section 6.01 Distributions on the Certificates. (a) Interest and principal
on the Certificates will be distributed by the Securities Administrator monthly
on each Distribution Date, commencing in June 2006, as instructed by the Master
Servicer, in an aggregate amount equal to the sum of the Available Funds for
such Distribution Date. On each Distribution Date, the Available Funds shall be
distributed as follows:

          (A) On each Distribution Date, the Group I Available Funds will be
          distributed in the following order of priority among the Group I
          Certificates except as otherwise noted:

               first, to the Class I-A and Class A-R Certificates, pro rata, the
               Accrued Certificate Interest on each class of Group I
               Certificates for such Distribution Date;

               second, to the Class I-A and Class A-R Certificates, pro rata,
               any Accrued Certificate Interest thereon remaining undistributed
               from previous Distribution Dates, to the extent of remaining
               Group I Available Funds, any shortfall in available amounts being
               allocated to the Group I Certificates in proportion to the amount
               of such Accrued Certificate Interest remaining undistributed for
               each class of Group I Certificates for such Distribution Date;
               and

               third, to the Class I-A and Class A-R Certificates, pro rata, in
               reduction of the Class Certificate Balances thereof, the Group I
               Senior Principal Distribution Amount for such Distribution Date
               to the extent of remaining Group I Available Funds, until the
               Class Certificate Balances of such Classes have been reduced to
               zero.

          (B) On each Distribution Date, the Group II Available Funds will be
          distributed in the following order of priority among the Group II
          Certificates except as otherwise noted:

               first, to the Class II-A-1 Certificates and Class II-A-2
               Certificates, pro rata, the Accrued Certificate Interest on the
               Group II Certificates for such Distribution Date;

               second, to the Class II-A-1 Certificates and Class II-A-2
               Certificates, pro rata, any Accrued Certificate Interest thereon
               remaining undistributed from previous Distribution Dates, to the
               extent of remaining Group II Available Funds, any shortfall in
               available amounts being allocated to the Group II Certificates in
               proportion to the amount of such Accrued

                                      -97-

<PAGE>

               Certificate Interest remaining undistributed for the Group II
               Certificates for such Distribution Date; and

               third, to the Class II-A-1 Certificates and Class II-A-2
               Certificates, pro rata, in reduction of the Class Certificate
               Balance thereof, the Group II Senior Principal Distribution
               Amount for such Distribution Date to the extent of remaining
               Group II Available Funds, until the Class Certificate Balance of
               such Class has been reduced to zero.

          (C) On each Distribution Date, the Group III Available Funds will be
          distributed in the following order of priority among the Group III
          Certificates except as otherwise noted:

               first, to the Class III-A-1 Certificates and Class III-A-2
               Certificates, pro rata, the Accrued Certificate Interest on the
               Class III-A Certificates for such Distribution Date;

               second, to the Class III-A-1 Certificates and Class III-A-2
               Certificates, pro rata, any Accrued Certificate Interest thereon
               remaining undistributed from previous Distribution Dates, to the
               extent of remaining Group III Available Funds, any shortfall in
               available amounts being allocated to the Group III Certificates
               in proportion to the amount of such Accrued Certificate Interest
               remaining undistributed for the Group III Certificates for such
               Distribution Date; and

               third, to the Class III-A-1 Certificates and Class III-A-2
               Certificates, pro rata, in reduction of the Class Certificate
               Balance thereof, the Group III Senior Principal Distribution
               Amount for such Distribution Date to the extent of remaining
               Group III Available Funds, until the Class Certificate Balance of
               such Class has been reduced to zero.

          (D) On each Distribution Date, the Group IV Available Funds will be
          distributed in the following order of priority among the Group IV
          Certificates except as otherwise noted:

               first, to the Class IV-A-1 Certificates and Class IV-A-2
               Certificates, pro rata,, the Accrued Certificate Interest on the
               Class IV-A Certificates for such Distribution Date;

               second, to the Class IV-A-1 Certificates and Class IV-A-2
               Certificates, pro rata, any Accrued Certificate Interest thereon
               remaining undistributed from previous Distribution Dates, to the
               extent of remaining Group IV Available Funds, any shortfall in
               available amounts being allocated to the Group IV Certificates in
               proportion to the amount of such Accrued Certificate Interest
               remaining undistributed for the Group IV Certificates for such
               Distribution Date; and

                                      -98-

<PAGE>

               third, to the Class IV-A-1 Certificates and Class IV-A-2
               Certificates, pro rata, in reduction of the Class Certificate
               Balance thereof, the Group IV Senior Principal Distribution
               Amount for such Distribution Date to the extent of remaining
               Group IV Available Funds, until the Class Certificate Balance of
               such Class has been reduced to zero.

          (E) On each Distribution Date, the Group V Available Funds will be
          distributed in the following order of priority among the Group V
          Certificates except as otherwise noted:

               first, to the Class V-A-1 Certificates and Class V-A-2
               Certificates, pro rata,, the Accrued Certificate Interest on the
               Class V-A Certificates for such Distribution Date;

               second, to the Class V-A-1 Certificates and Class V-A-2
               Certificates, pro rata, any Accrued Certificate Interest thereon
               remaining undistributed from previous Distribution Dates, to the
               extent of remaining Group V Available Funds, any shortfall in
               available amounts being allocated to the Group V Certificates in
               proportion to the amount of such Accrued Certificate Interest
               remaining undistributed for the Group V Certificates for such
               Distribution Date; and

               third, to the Class V-A-1 Certificates and Class V-A-2
               Certificates, pro rata, in reduction of the Class Certificate
               Balance thereof, the Group V Senior Principal Distribution Amount
               for such Distribution Date to the extent of remaining Group V
               Available Funds, until the Class Certificate Balance of such
               Class has been reduced to zero.

          (F) On each Distribution Date, the Group VI Available Funds will be
          distributed in the following order of priority among the Group VI
          Certificates except as otherwise noted:

               first, to the Class VI-A-1 Certificates and Class VI-A-2
               Certificates, pro rata,, the Accrued Certificate Interest on the
               Class IV-A Certificates for such Distribution Date;

               second, to the Class VI-A-1 Certificates and Class VI-A-2
               Certificates, pro rata, any Accrued Certificate Interest thereon
               remaining undistributed from previous Distribution Dates, to the
               extent of remaining Group VI Available Funds, any shortfall in
               available amounts being allocated to the Group VI Certificates in
               proportion to the amount of such Accrued Certificate Interest
               remaining undistributed for the Group VI Certificates for such
               Distribution Date; and

               third, to the Class VI-A-1 Certificates and Class VI-A-2
               Certificates, pro rata, in reduction of the Class Certificate
               Balance thereof, the Group VI Senior Principal Distribution
               Amount for such Distribution Date to the

                                      -99-

<PAGE>

               extent of remaining Group VI Available Funds, until the Class
               Certificate Balance of such Class has been reduced to zero.

          (G) On each Distribution Date on or prior to the Credit Support
          Depletion Date, an amount equal to the sum of the remaining Group I
          Available Funds, Group II Available Funds, Group III Available Funds,
          Group IV Available Funds, Group V Available Funds and Group VI
          Available Funds after the distributions in clauses (A) through (F)
          above and after any distributions required to be made pursuant to
          clauses (H) and (I) below, will be distributed sequentially, in the
          following order, to the Class M-1, Class M-2, Class M-3, Class B-1,
          Class B-2 and Class B-3 Certificates, in each case up to an amount
          equal to and in the following order: (a) the Accrued Certificate
          Interest thereon for such Distribution Date, (b) any Accrued
          Certificate Interest thereon remaining undistributed from previous
          Distribution Dates and (c) such Class's Subordinate Principal
          Distribution Amount for such Distribution Date, in each case to the
          extent of the remaining Available Funds.

          (H) On each Distribution Date prior to the Credit Support Depletion
          Date but after the reduction of the aggregate Class Certificate
          Balance of the related Senior Certificates of a related Loan Group to
          zero, the remaining Class or Classes of related Senior Certificates
          will be entitled to receive in reduction of their Class Certificate
          Balances, pro rata, based upon their respective Class Certificate
          Balances immediately prior to such Distribution Date, in addition to
          any Principal Prepayments related to such remaining Senior
          Certificates' respective Loan Group allocated to such Senior
          Certificates, 100% of the Principal Prepayments on any Mortgage Loan
          in the Loan Group relating to the fully repaid Class or Classes of
          Senior Certificates; provided, however, that if both (a) the weighted
          average of the Subordinate Percentage equals or exceeds 200% of the
          original weighted average of the Subordinate Percentage as of the
          Closing Date on or after the Distribution Date in June 2009 and (b)
          the aggregate Stated Principal Balance of the Mortgage Loans
          delinquent 60 days or more, averaged over the last six months, as a
          percentage of the aggregate Class Certificate Balance of the Class M
          Certificates and Class B Certificates, does not exceed 50%, then the
          additional allocation of Principal Prepayments to the Senior
          Certificates in accordance with this clause (H) will not be made and
          100% of the Principal Prepayments on any Mortgage Loan in the Loan
          Group relating to the fully repaid class or classes of Senior
          Certificates will be allocated to the Subordinate Certificates.

          (I) If on any Distribution Date on which the aggregate Class
          Certificate Balance of any Class or Classes of Senior Certificates
          would be greater than the aggregate Stated Principal Balance of the
          Mortgage Loans in its related Loan Group (the amount of such excess,
          the "Undercollateralized Amount," and any such Class or Classes of
          Senior Certificates, the "Undercollateralized Senior Certificates")
          and any Subordinate Certificates are still outstanding in each case
          after giving effect to distributions to be made on such Distribution
          Date, (i) 100% of amounts otherwise allocable to the Subordinate
          Certificates in respect of principal will be distributed to the
          Undercollateralized Senior Certificates in

                                     -100-

<PAGE>

          reduction of the Class Certificate Balances thereof, until the
          aggregate Class Certificate Balance of such Class or Classes of
          Undercollateralized Senior Certificates is equal to the aggregate
          Stated Principal Balance of the Mortgage Loans in its related Loan
          Group, and (ii) the Accrued Certificate Interest otherwise allocable
          to the Subordinate Certificates on such Distribution Date will be
          reduced, if necessary, and distributed to such Class or Classes of
          Undercollateralized Senior Certificates pursuant to clause first of
          clauses (A), (B), (C), (D), (E) or (F) above, as applicable, in an
          amount equal to the Accrued Certificate Interest at the Pass-Through
          Rate for such Class or Classes of Undercollateralized Senior
          Certificates for such Distribution Date on a balance equal to the
          related Undercollateralized Amount. Any such reduction in the Accrued
          Certificate Interest on the Subordinate Certificates will be allocated
          to the Class B-3, Class B-2, Class B-1, Class M-3, Class M-2 and Class
          M-1 Certificates, in that order.

     On each Distribution Date, any Available Funds remaining after payment of
interest and principal to the Classes of Certificates entitled thereto, as
described above, will be distributed to the Class A-R Certificates; provided
that if on any Distribution Date on and after the Credit Support Depletion Date
there are any Group I, Group II, Group III, Group IV, Group V or Group VI
Available Funds remaining after payment of interest and principal to a Class or
Classes of Senior Certificates entitled thereto, such amounts will be
distributed to the other Classes of Senior Certificates, pro rata, based upon
their Class Certificate Balances, until all amounts due to all Classes of Senior
Certificates have been paid in full, before any amounts are distributed to the
Class A-R Certificates.

     In addition to the foregoing distributions, with respect to any Subsequent
Recoveries, the Master Servicer shall deposit such amounts into the Master
Servicer Collection Account pursuant to Section 4.01(a). 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 Class
Certificate Balance of the Class of Subordinate Certificates with the highest
payment priority to which Realized Losses have been allocated, including any
Class of Subordinate Certificates to which a Realized Loss was previously
allocated and whose Class Certificate Balance has been reduced to zero, but not
by more than the amount of Realized Losses previously allocated to that Class of
Certificates pursuant to Section 6.02. The amount of any remaining Subsequent
Recoveries will be applied to increase the Class Certificate Balance of the
Class of Certificates with the next highest payment priority, up to the amount
of such Realized Losses previously allocated to that Class of Certificates
pursuant to Section 6.02, and so on. Holders of such Certificates will not be
entitled to any payment in respect of Accrued Certificate 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
Class Certificate Balance of each Certificate of such Class in accordance with
its respective Percentage Interest.

                                     -101-

<PAGE>

     Section 6.02 Allocation of Losses.

     (a) On or prior to each Determination Date, the Securities Administrator
shall determine the amount of any Realized Loss in respect of each Mortgage Loan
that occurred during the immediately preceding calendar month.

     (b) With respect to any Certificates on any Distribution Date, the
principal portion of each Realized Loss on a Mortgage Loan shall be allocated as
follows:

          first, to the Class B-3 Certificates until the Class Certificate
     Balance thereof has been reduced to zero;

          second, to the Class B-2 Certificates until the Class Certificate
     Balance thereof has been reduced to zero;

          third, to the Class B-1 Certificates until the Class Certificate
     Balance thereof has been reduced to zero;

          fourth, to the Class M-3 Certificates until the Class Certificate
     Balance thereof has been reduced to zero;

          fifth, to the Class M-2 Certificates until the Class Certificate
     Balance thereof has been reduced to zero;

          sixth, to the Class M-1 Certificates until the Class Certificate
     Balance thereof has been reduced to zero;

          seventh, if the Realized Loss occurs on a Mortgage Loan in a Loan
     Group where the aggregate Stated Principal Balance of the Mortgage Loans in
     such Loan Group is greater than the aggregate Class Certificate Balance of
     the related Senior Certificates, the Realized Loss will be allocated to any
     Senior Certificates related to a Loan Group where the aggregate Stated
     Principal Balance of the Mortgage Loans in such Loan Group is less than the
     aggregate Class Certificate Balance of the related Senior Certificates (any
     such amount, the "Deficiency Amount"), pro rata, based on the respective
     Deficiency Amount, in each case until the amount by which the aggregate
     Stated Principal Balance of the Mortgage Loans in the Loan Group in which
     the Realized Loss occurs exceeds the aggregate Class Certificate Balance of
     the related Senior Certificates until the Class Certificate Balances of
     such Senior Certificates have been reduced to zero; and

          eighth, to the Senior Certificates related to the Loan Group in which
     the Realized Loss occurred, until the Class Certificate Balances thereof
     have been reduced to zero.

          Notwithstanding the foregoing, any portion of any Realized Loss that
     would otherwise be allocated to the Class II-A-1 Certificates will instead
     be allocated first to the Class II-A-2 Certificates until the Class
     Certificate Balance thereof has been reduced to zero, any portion of any
     Realized Loss that would otherwise be allocated to the Class III-A-1
     Certificates will instead be allocated first to the Class III-A-2
     Certificates until the Class Certificate Principal Balance thereof has been
     reduced to zero, any portion of any

                                     -102-

<PAGE>

     Realized Loss that would otherwise be allocated to the Class IV-A-1
     Certificates will instead be allocated first to the Class IV-A-2
     Certificates until the Class Certificate Principal Balance thereof has been
     reduced to zero, any portion of any Realized Loss that would otherwise be
     allocated to the Class V-A-1 Certificates will instead be allocated first
     to the Class V-A-2 Certificates until the Class Certificate Principal
     Balance thereof has been reduced to zero, and any portion of any Realized
     Loss that would otherwise be allocated to the Class VI-A-1 Certificates
     will instead be allocated first to the Class VI-A-2 Certificates until the
     Class Certificate Principal Balance thereof has been reduced to zero.

     (c) Notwithstanding the other provisions of Section 6.02, the first $0.91
of Realized Losses shall not be allocated to any Class of Certificates.

     Section 6.03 Payments.

     (a) On each Distribution Date, other than the final Distribution Date, the
Securities Administrator shall distribute to each Certificateholder of record on
the directly preceding Record Date the Certificateholder's pro rata share of its
Class (based on the aggregate Percentage Interest represented by such Holder's
Certificates) of all amounts required to be distributed on such Distribution
Date to such Class, based solely on information provided to the Securities
Administrator by the Master Servicer. The Securities Administrator shall
calculate the amount to be distributed to each Class and, based on such amounts,
the Securities Administrator shall determine the amount to be distributed to
each Certificateholder. All of the Securities Administrator's calculations of
payments shall be based solely on information provided to the Securities
Administrator by the Master Servicer or the applicable Servicer. The Securities
Administrator shall not be required to confirm, verify or recompute any such
information but shall be entitled to rely conclusively on such information.

     (b) Payment of the above amounts to each Certificateholder shall be made
(i) by check mailed to each Certificateholder entitled thereto at the address
appearing in the Certificate Register or (ii) upon receipt by the Securities
Administrator on or before the fifth Business Day preceding the Record Date of
written instructions from a Certificateholder by wire transfer to a United
States dollar account maintained by the payee at any United States depository
institution with appropriate facilities for receiving such a wire transfer;
provided, however, that the final payment in respect of each Class of
Certificates will be made only upon presentation and surrender of such
respective Certificates at the office or agency of the Securities Administrator
specified in the notice to Certificateholders of such final payment.

     Section 6.04 Statements to Certificateholders.

     (a) Concurrently with each distribution to Certificateholders, the
Securities Administrator shall make available to the parties hereto and each
Certificateholder via the Securities Administrator's internet website as set
forth below, the following information (such information the "Monthly
Statement"):

          (i) the amount of the distribution made on such Distribution Date to
     the Holders of each Class of Certificates, separately identified, allocable
     to principal;

                                     -103-
<PAGE>

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

          (iii) the aggregate amount the Servicing Fee during the related Due
     Period and such other customary information as the Trustee deems necessary
     or desirable, or which a Certificateholder reasonably requests, to enable
     Certificateholders to prepare their tax returns;

          (iv) the aggregate amount of Monthly Advances for the related Due
     Period;

          (v) the aggregate Stated Principal Balance of the Group I Mortgage
     Loans, Group II Mortgage Loans, Group III Mortgage Loans, Group IV Mortgage
     Loans, Group V Mortgage Loans and Group VI Mortgage Loans at the close of
     business at the end of the related Due Period;

          (vi) the number, weighted average remaining term to maturity and
     weighted average Mortgage Interest Rate of the Group I Mortgage Loans,
     Group II Mortgage Loans, Group III Mortgage Loans, Group IV Mortgage Loans,
     Group V Mortgage Loans and Group VI Mortgage Loans as of the related Due
     Date;

          (vii) the number and aggregate unpaid principal balance of Group I
     Mortgage Loans, Group II Mortgage Loans, Group III Mortgage Loans, Group IV
     Mortgage Loans, Group V Mortgage Loans and Group VI Mortgage Loans (a) one
     month, two months or three months delinquent on a contractual basis, (b) as
     to which foreclosure proceedings have been commenced and (c) in bankruptcy
     as of the close of business on the last day of the calendar month preceding
     such Distribution Date determined in accordance with the MBA method;

          (viii) with respect to any Group I Mortgage Loan, Group II Mortgage
     Loan, Group III Mortgage Loan, Group IV Mortgage Loan, Group V Mortgage
     Loan or Group VI Mortgage Loan that became an REO Property during the
     preceding calendar month, the Stated Principal Balance of such Group I
     Mortgage Loan, Group II Mortgage Loan, Group III Mortgage Loan, Group IV
     Mortgage Loan, Group V Mortgage Loan or Group VI Mortgage Loan as of the
     date it became an REO Property;

          (ix) the book value of any REO Property as of the close of business on
     the last Business Day of the calendar month preceding the Distribution
     Date, and, cumulatively, the total number and cumulative principal balance
     of all REO Properties as of the close of business of the last day of the
     preceding due period;

          (x) the aggregate amount of Principal Prepayments made during the
     related Prepayment Period;

          (xi) the aggregate amount of Realized Losses incurred during the
     related Due Period and the cumulative amount of Realized Losses;

          (xii) the aggregate amount of Extraordinary Trust Fund Expenses
     withdrawn from the Master Servicer Collection Account for such Distribution
     Date;

                                     -104-

<PAGE>

          (xiii) the Class Certificate Balance of each Class of Certificates,
     after giving effect to the distributions made on such Distribution Date;

          (xiv) the aggregate amount of interest accrued at the related
     Pass-Through Rate with respect to each Class during the related Interest
     Accrual Period and the respective portions thereof, if any, remaining
     unpaid following the distributions made in respect of such Certificates on
     such Distribution Date;

          (xv) the aggregate amount of any Prepayment Interest Shortfalls for
     such Distribution Date as determined separately for each Loan Group, to the
     extent not covered by Compensating Interest Payments by the related
     Servicer or the Master Servicer pursuant to the related Servicing Agreement
     or Section 6.06;

          (xvi) the Group I Available Funds, Group II Available Funds, Group III
     Available Funds, Group IV Available Funds, Group V Available Funds and
     Group VI Available Funds;

          (xvii) the Pass-Through Rate for each Class of Certificates for such
     Distribution Date; and

          (xviii) the aggregate Stated Principal Balance of Group I Mortgage
     Loans, Group II Mortgage Loans, Group III Mortgage Loans, Group IV Mortgage
     Loans, Group V Mortgage Loans and Group VI Mortgage Loans purchased by the
     Seller during the related Due Period and indicating the Section of this
     Agreement requiring or allowing the purchase of each such Group I Mortgage
     Loan, Group II Mortgage Loan, Group III Mortgage Loan, Group IV Mortgage
     Loan, Group V Mortgage Loan and Group VI Mortgage Loan.

     The information set forth above shall be calculated or reported, as the
case may be, by the Securities Administrator, based solely on, and to the extent
of, information provided to the Securities Administrator by the Master Servicer.
The Securities Administrator may conclusively rely on such information and shall
not be required to confirm, verify or recalculate any such information.

     The Securities Administrator may make available each month, to any
interested party, the Monthly Statement to Certificateholders via the Securities
Administrator's website initially located at "www.ctslink.com." Assistance in
using the website can be obtained by calling the Securities Administrator's
customer service desk at (301) 815-6600. Parties that are unable to use the
above distribution option are entitled to have a paper copy mailed to them via
first class mail by calling the customer service desk and indicating such. The
Securities Administrator shall have the right to change the way such reports are
distributed in order to make such distribution more convenient and/or more
accessible to the parties, and the Securities Administrator shall provide timely
and adequate notification to all parties regarding any such change.

     (b) By January 30 of each year beginning in 2007, if so requested in
writing, the Securities Administrator will furnish such report to each Holder of
the Certificates of record at any time during the prior calendar year as to the
aggregate of amounts reported pursuant to

                                     -105-

<PAGE>

subclauses (a)(ii) and (a)(v) above with respect to the Certificates, plus
information with respect to the amount of servicing compensation and such other
customary information as the Securities Administrator may determine to be
necessary and/or to be required by the Internal Revenue Service or by a federal
or state law or rules or regulations to enable such Holders to prepare their tax
returns for such calendar year. Such obligations shall be deemed to have been
satisfied to the extent that substantially comparable information shall be
provided by the Securities Administrator pursuant to the requirements of the
Code.

     Section 6.05 Monthly Advances. If the Monthly Payment on a Mortgage Loan
that was due on a related Due Date and is delinquent other than as a result of
application of the Relief Act and for which the related Servicer was required to
make an advance pursuant to the related Servicing Agreement exceeds the amount
deposited in the Master Servicer Collection Account that will be used for a
Monthly Advance with respect to such Mortgage Loan, the Master Servicer will
deposit in the Master Servicer Collection Account not later than the
Distribution Account Deposit Date immediately preceding the related Distribution
Date an amount equal to such deficiency, net of the Servicing Fee for such
Mortgage Loan, except to the extent the Master Servicer determines any such
Monthly Advance to be nonrecoverable from Liquidation Proceeds, Insurance
Proceeds or future payments on the Mortgage Loan for which such Monthly Advance
was made. If the Master Servicer has not deposited the amount described above as
of the related Distribution Account Deposit Date, the Trustee will, subject to
applicable law and its determination of recoverability, deposit in the Master
Servicer Collection Account not later than the related Distribution Date, an
amount equal to the remaining deficiency as of the Distribution Account Deposit
Date. Subject to the foregoing, the Master Servicer shall continue to make such
Monthly Advances through the date that the related Servicer is required to do so
under its Servicing Agreement. If applicable, on the Distribution Account
Deposit Date, the Master Servicer shall present an Officer's Certificate to the
Securities Administrator (i) stating that the Master Servicer elects not to make
a Monthly Advance in a stated amount and (ii) detailing the reason it deems the
advance to be nonrecoverable.

     Section 6.06 Compensating Interest Payments. The Master Servicer shall
deposit in the Master Servicer Collection Account not later than each
Distribution Account Deposit Date an amount equal to the aggregate amounts
required to be paid by the Servicers under the Servicing Agreements with respect
to subclause (a) of the definition of Prepayment Interest Shortfall with respect
to the Mortgage Loans for the related Distribution Date, and not so paid by the
related Servicers (such amount, the "Compensating Interest Payment"). The Master
Servicer shall not be entitled to any reimbursement of any Compensating Interest
Payment; provided, however, the aggregate compensating interest payments made by
the Master Servicer shall not exceed the Master Servicing Compensation.

                                     -106-

<PAGE>

                                  ARTICLE VII
                      THE MASTER SERVICER AND THE DEPOSITOR

     Section 7.01 Liabilities of the Master Servicer. The Master Servicer shall
be liable in accordance herewith only to the extent of the obligations
specifically imposed upon and undertaken by the Master Servicer, as the case may
be, herein. The Depositor shall be liable in accordance herewith only to the
extent of the obligations specifically imposed upon and undertaken by the
Depositor.

     Section 7.02 Merger or Consolidation of the Master Servicer.

     (a) Each of the Master Servicer and the Depositor will keep in full force
and effect its existence, rights and franchises as a corporation under the laws
of the state of its incorporation, and will obtain and preserve its
qualification to do business as a foreign corporation in each jurisdiction in
which such qualification is or shall be necessary to protect the validity and
enforceability of this Agreement, the Certificates or any of the Mortgage Loans
and to perform its duties under this Agreement.

     (b) Any Person into which the Master Servicer or the Depositor may be
merged or consolidated, or any corporation resulting from any merger or
consolidation to which the Master Servicer shall be a party, or any Person
succeeding to the business of the Master Servicer, shall be the successor of the
Master Servicer hereunder, without the execution or filing of any paper or
further act on the part of any of the parties hereto, anything herein to the
contrary notwithstanding.

     Section 7.03 Indemnification from the Master Servicer and the Depositor.

     (a) The Master Servicer agrees to indemnify the Indemnified Persons for,
and to hold them harmless against, any loss, liability or expense (including
reasonable legal fees and disbursements of counsel) incurred on their part that
may be sustained in connection with, arising out of, or relating to, any claim
or legal action (including any pending or threatened claim or legal action)
relating to this Agreement or the Certificates (i) related to the Master
Servicer's failure to perform its duties in compliance with this Agreement
(except as any such loss, liability or expense shall be otherwise reimbursable
pursuant to this Agreement) or (ii) incurred by reason of the Master Servicer's
willful misfeasance, bad faith or gross negligence in the performance of duties
hereunder or by reason of reckless disregard of obligations and duties
hereunder, provided, in each case, that with respect to any such claim or legal
action (or pending or threatened claim or legal action), the Trustee or the
Securities Administrator shall have given the Master Servicer and the Depositor
written notice of such claim or legal action promptly after the Trustee or the
Securities Administrator shall have received knowledge thereof. This indemnity
shall survive the resignation or removal of the Trustee, Master Servicer or the
Securities Administrator and the termination of this Agreement.

     (b) The Depositor will indemnify any Indemnified Person for any loss,
liability or expense of any Indemnified Person not otherwise referred to in
Subsection (a) above.

                                     -107-

<PAGE>

     Section 7.04 Limitations on Liability of the Master Servicer and Others.
Subject to the obligation of the Master Servicer to indemnify the Indemnified
Persons pursuant to Section 7.03:

     (a) Neither the Master Servicer nor any of the directors, officers,
employees or agents of the Master Servicer shall be under any liability to the
Indemnified Persons, the Depositor, the Issuing Entity or the Certificateholders
for taking any action or for refraining from taking any action in good faith
pursuant to this Agreement, or for errors in judgment; provided, however, that
this provision shall not protect the Master Servicer or any such Person against
any breach of warranties or representations made herein or any liability which
would otherwise be imposed by reason of such Person's willful misfeasance, bad
faith or gross negligence in the performance of duties or by reason of reckless
disregard of obligations and duties hereunder.

     (b) The Master Servicer and any director, officer, employee or agent of the
Master Servicer may rely in good faith on any document of any kind prima facie
properly executed and submitted by any Person respecting any matters arising
hereunder.

     (c) The Master Servicer, the Custodian and any director, officer, employee
or agent of the Master Servicer or the Custodian shall be indemnified by the
Issuing Entity and held harmless thereby against any loss, liability or expense
(including reasonable legal fees and disbursements of counsel) incurred on their
part that may be sustained in connection with, arising out of, or related to,
any claim or legal action (including any pending or threatened claim or legal
action) relating to this Agreement, the Certificates or any Servicing Agreement
(except to the extent that the Master Servicer or the Custodian, as the case may
be, is indemnified by a Servicer thereunder), other than (i) any such loss,
liability or expense related to the Master Servicer's failure to perform its
duties in compliance with this Agreement (except as any such loss, liability or
expense shall be otherwise reimbursable pursuant to this Agreement), or to the
Custodian's failure to perform its duties under the Custodial Agreement,
respectively, or (ii) any such loss, liability or expense incurred by reason of
the Master Servicer's or the Custodian's willful misfeasance, bad faith or gross
negligence in the performance of duties hereunder or under the Custodial
Agreement, as applicable, or by reason of reckless disregard of obligations and
duties hereunder or under the Custodial Agreement, as applicable.

     (d) The Master Servicer shall not be under any obligation to appear in,
prosecute or defend any legal action that is not incidental to its duties under
this Agreement and that in its opinion may involve it in any expense or
liability; provided, however, the Master Servicer may in its discretion,
undertake any such action which it may deem necessary or desirable with respect
to this Agreement and the rights and duties of the parties hereto and the
interests of the Certificateholders hereunder. In such event, the legal expenses
and costs of such action and any liability resulting therefrom shall be
expenses, costs and liabilities of the Issuing Entity, and the Master Servicer
shall be entitled to be reimbursed therefor out of the Master Servicer
Collection Account as provided by Section 4.03. Nothing in this Subsection
7.04(d) shall affect the Master Servicer's obligation to supervise, or to take
such actions as are necessary to ensure, the servicing and administration of the
Mortgage Loans pursuant to Subsection 3.01(a).

     (e) In taking or recommending any course of action pursuant to this
Agreement, unless specifically required to do so pursuant to this Agreement, the
Master Servicer shall not be required to investigate or make recommendations
concerning potential liabilities which the

                                     -108-

<PAGE>

Issuing Entity might incur as a result of such course of action by reason of the
condition of the Mortgaged Properties but shall give notice to the Trustee if it
has notice of such potential liabilities.

     (f) The Master Servicer shall not be liable for any acts or omissions of
any Servicer, except as otherwise expressly provided herein.

     Section 7.05 Master Servicer Not to Resign. Except as provided in Section
7.07, the Master Servicer shall not resign from the obligations and duties
hereby imposed on it except upon a determination that any such duties hereunder
are no longer permissible under applicable law and such impermissibility cannot
be cured. Any such determination permitting the resignation of the Master
Servicer shall be evidenced by an Opinion of Independent Counsel to such effect
delivered to the Trustee. No such resignation by the Master Servicer shall
become effective until MLML or the Trustee or a successor to the Master Servicer
reasonably satisfactory to the Trustee shall have assumed the responsibilities
and obligations of the Master Servicer in accordance with Section 8.02 hereof.
The Trustee shall notify the Rating Agencies of the resignation of the Master
Servicer. If the Master Servicer and the Securities Administrator are the same
entity, then at any time the Master Servicer is terminated as master servicer,
the Securities Administrator shall likewise be removed as securities
administrator.

     Section 7.06 Successor Master Servicer. In connection with the appointment
of any successor Master Servicer or the assumption of the duties of the Master
Servicer, MLML or the Trustee may make such arrangements for the compensation of
such successor master servicer out of payments on the Mortgage Loans as MLML or
the Trustee and such successor master servicer shall agree. If the successor
master servicer does not agree that such market value is a fair price, such
successor master servicer shall obtain two quotations of market value from third
parties actively engaged in the servicing of single-family mortgage loans.

     Section 7.07 Sale and Assignment of Master Servicing. The Master Servicer
may sell and assign its rights and delegate its duties and obligations in its
entirety as Master Servicer under this Agreement; provided, however, that: (i)
the purchaser or transferee accepting such assignment and delegation (a) shall
be a Person which shall be qualified to service mortgage loans for Fannie Mae or
Freddie Mac; (b) shall have a net worth of not less than $10,000,000 (unless
otherwise approved by each Rating Agency pursuant to clause (ii) below); (c)
shall be reasonably satisfactory to the Trustee (as evidenced in a writing
signed by the Trustee); and (d) shall execute and deliver to the Trustee an
agreement, in form and substance reasonably satisfactory to the Trustee, which
contains an assumption by such Person of the due and punctual performance and
observance of each covenant and condition to be performed or observed by it as
master servicer under this Agreement, any custodial agreement from and after the
effective date of such agreement; (ii) each Rating Agency shall be given prior
written notice of the identity of the proposed successor to the Master Servicer
and each Rating Agency's rating of the Certificates in effect immediately prior
to such assignment, sale and delegation will not be downgraded, qualified or
withdrawn as a result of such assignment, sale and delegation, as evidenced by a
letter to such effect delivered to the Master Servicer and the 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

                                     -109-

<PAGE>

the terms of this Agreement. No such assignment or delegation shall affect any
liability of the Master Servicer arising prior to the effective date thereof.

                                  ARTICLE VIII
                                     DEFAULT

     Section 8.01 Events of Default. "Event of Default," wherever used herein,
means any one of the following events (whatever the reason for such Event of
Default and whether it shall be voluntary or involuntary or be effected by
operation of law or pursuant to any judgment, decree or order of any court or
any order, rule or regulation of any administrative or governmental body) and
only with respect to the defaulting Master Servicer:

          (i) The Master Servicer fails to cause to be deposited in the
     Distribution Account any amount so required to be deposited pursuant to
     this Agreement, and such failure continues unremedied for a period of three
     Business Days after the date upon which written notice of such failure,
     requiring the same to be remedied, shall have been given to the Master
     Servicer; or

          (ii) The Master Servicer fails to observe or perform in any material
     respect any other material covenants and agreements set forth in this
     Agreement to be performed by it, which covenants and agreements materially
     affect the rights of Certificateholders, and such failure continues
     unremedied for a period of 60 days after the date on which written notice
     of such failure, properly requiring the same to be remedied, shall have
     been given to the Master Servicer by the Trustee or to the Master Servicer
     and the Trustee by the Holders of Certificates evidencing Percentage
     Interests aggregating not less than 25% of the Trust Fund; or

          (iii) There is entered against the Master Servicer a decree or order
     by a court or agency or supervisory authority having jurisdiction in the
     premises for the appointment of a conservator, receiver or liquidator in
     any insolvency, readjustment of debt, marshaling of assets and liabilities
     or similar proceedings, or for the winding up or liquidation of its
     affairs, and the continuance of any such decree or order is unstayed and in
     effect for a period of 60 consecutive days, or an involuntary case is
     commenced against the Master Servicer under any applicable insolvency or
     reorganization statute and the petition is not dismissed within 60 days
     after the commencement of the case; or

          (iv) The Master Servicer consents to the appointment of a conservator
     or receiver or liquidator in any insolvency, readjustment of debt,
     marshaling of assets and liabilities or similar proceedings of or relating
     to the Master Servicer or substantially all of its property; or the Master
     Servicer admits in writing its inability to pay its debts generally as they
     become due, files a petition to take advantage of any applicable insolvency
     or reorganization statute, makes an assignment for the benefit of its
     creditors, or voluntarily suspends payment of its obligations; or

          (v) The Master Servicer assigns or delegates its duties or rights
     under this Agreement in contravention of the provisions permitting such
     assignment or delegation under Sections 7.05 or 7.07.

                                     -110-

<PAGE>

In each and every such case, so long as such Event of Default with respect to
the Master Servicer shall not have been remedied, either the Trustee or the
Holders of Certificates evidencing Percentage Interests aggregating not less
than 51% of the principal of the Trust Fund, by notice in writing to the Master
Servicer (and to the Trustee if given by such Certificateholders), with a copy
to the Rating Agencies, and with the consent of MLML, may terminate all of the
rights and obligations (but not the liabilities) of the Master Servicer under
this Agreement and in and to the Mortgage Loans and/or the REO Property serviced
by the Master Servicer and the proceeds thereof. Upon the receipt by the Master
Servicer of the written notice, all authority and power of the Master Servicer
under this Agreement, whether with respect to the Certificates, the Mortgage
Loans, REO Property or under any other related agreements (but only to the
extent that such other agreements relate to the Mortgage Loans or related REO
Property) shall, subject to Section 8.02, automatically and without further
action pass to and be vested in the Trustee pursuant to this Section 8.01; and,
without limitation, the Trustee is hereby authorized and empowered to execute
and deliver, on behalf of the Master Servicer as attorney-in-fact or otherwise,
any and all documents and other instruments and to do or accomplish all other
acts or things necessary or appropriate to effect the purposes of such notice of
termination, whether to complete the transfer and endorsement or assignment of
the Mortgage Loans and related documents, or otherwise. The Master Servicer
agrees to cooperate with the Trustee in effecting the termination of the Master
Servicer's rights and obligations hereunder, including, without limitation, the
transfer to the Trustee of (i) the property and amounts which are then or should
be part of the Issuing Entity or which thereafter become part of the Issuing
Entity; and (ii) originals or copies of all documents of the Master Servicer
reasonably requested by the Trustee to enable it to assume the Master Servicer's
duties thereunder. In addition to any other amounts which are then, or,
notwithstanding the termination of its activities under this Agreement, may
become payable to the Master Servicer under this Agreement, the Master Servicer
shall be entitled to receive, out of any amount received on account of a
Mortgage Loan or related REO Property, that portion of such payments which it
would have received as reimbursement under this Agreement if notice of
termination had not been given. The termination of the rights and obligations of
the Master Servicer shall not affect any obligations incurred by the Master
Servicer prior to such termination.

     Section 8.02 Trustee to Act; Appointment of Successor.

     (a) Upon the receipt by the Master Servicer of a notice of termination
pursuant to Section 8.01 or an Opinion of Independent Counsel pursuant to
Section 7.05 to the effect that the Master Servicer is legally unable to act or
to delegate its duties to a Person which is legally able to act, the Trustee
shall automatically become the successor in all respects to the Master Servicer
in its capacity under this Agreement and the transactions set forth or provided
for herein and shall thereafter be subject to all the responsibilities, duties,
liabilities and limitations on liabilities relating thereto placed on the Master
Servicer by the terms and provisions hereof; provided, however, that MLML shall
have the right to either (a) immediately assume the duties of the Master
Servicer or (b) select a successor master servicer; provided further, however,
that the Trustee shall have no obligation whatsoever with respect to any
liability (other than advances deemed recoverable and not previously made)
incurred by the Master Servicer at or prior to the time of termination. As
compensation therefor, the Trustee shall be entitled to all funds relating to
the Mortgage Loans which the Master Servicer would have been entitled to retain
if the Master Servicer had continued to act hereunder, except for those amounts
due the Master

                                     -111-

<PAGE>

Servicer as reimbursement permitted under this Agreement for advances previously
made or expenses previously incurred. Notwithstanding the above, or anything
herein to the contrary, the Trustee, if it becomes Master Servicer, shall have
no responsibility or obligation (i) to repurchase or substitute any Mortgage
Loan, (ii) for any representation or warranty of the Master Servicer hereunder,
and (iii) for any act or omission of either a predecessor or successor Master
Servicer other than the Trustee. The Trustee may conduct any activity required
of it as Master Servicer hereunder through an Affiliate or through an agent.
Neither the Trustee (as successor Master Servicer) nor any other successor
Master Servicer shall be deemed to be in default hereunder due to any act or
omission of a predecessor Master Servicer, including but not limited to failure
to timely deliver to the Trustee distribution instructions, any funds required
to be deposited to the Trust Fund, or any breach of its duty to cooperate with a
transfer of master servicing. 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 solely by the failure of the
Master Servicer to deliver or provide, or any delay in delivering or providing,
any cash, information, documents or records required to be provided to it by the
Master Servicer. Notwithstanding the above, the Trustee may, if it shall be
unwilling so to act, or shall, if it is legally unable so to act, appoint or
petition a court of competent jurisdiction to appoint, any established housing
and home finance institution which is a Fannie Mae- or Freddie Mac-approved
servicer, and with respect to a successor to the Master Servicer only, having a
net worth of not less than $10,000,000 and meeting such other standards for a
successor Master Servicer as are set forth in this Agreement, as the successor
to the Master Servicer hereunder in the assumption of all or any part of the
responsibilities, duties or liabilities of the Master Servicer hereunder.
Pending appointment of a successor to the Master Servicer hereunder, the Trustee
shall act in such capacity as hereinabove provided. In connection with such
appointment and assumption, the Trustee may make such arrangements for the
compensation of such successor out of payments on the Mortgage Loans as it and
such successor shall agree; provided, however, in the event that the provisions
of Section 7.06 shall apply, no such compensation shall be in excess of that
permitted the Trustee under this Subsection 8.02(a), and that such successor
shall undertake and assume the obligations of the Trustee to pay compensation to
any third Person acting as an agent or independent contractor in the performance
of master servicing responsibilities hereunder. The Trustee and such successor
shall take such action, consistent with this Agreement, as shall be necessary to
effectuate any such succession.

     (b) If the Trustee shall succeed to any duties of the Master Servicer
respecting the Mortgage Loans as provided herein, it shall do so in a separate
capacity and not in its capacity as Trustee and, accordingly, the provisions of
Article IX shall be inapplicable to the Trustee in its duties as the successor
to the Master Servicer in the servicing of the Mortgage Loans (although such
provisions shall continue to apply to the Trustee in its capacity as Trustee);
the provisions of Article VII, however, shall apply to it in its capacity as
successor master servicer.

                                     -112-

<PAGE>

     Section 8.03 Notification to Certificateholders. Upon any termination or
appointment of a successor to the Master Servicer, the Trustee shall give prompt
written notice thereof to Certificateholders at their respective addresses
appearing in the Certificate Register and to the Rating Agencies.

     Section 8.04 Waiver of Defaults. The Trustee shall transmit by mail to all
Certificateholders, within 60 days after the occurrence of any Event of Default
known to the Trustee, unless such Event of Default shall have been cured, notice
of each such Event of Default hereunder known to the Trustee. The Holders of
Certificates evidencing Percentage Interests aggregating not less than 51% of
the Trust Fund may, on behalf of all Certificateholders, waive any default by
the Master Servicer in the performance of its obligations hereunder and the
consequences thereof, except a default in the making of or the causing to be
made any required distribution on the Certificates. Upon any such waiver of a
past default, such default shall be deemed to cease to exist, and any Event of
Default arising therefrom shall be deemed to have been timely remedied for every
purpose of this Agreement. No such waiver shall extend to any subsequent or
other default or impair any right consequent thereon except to the extent
expressly so waived. The Trustee shall give notice of any such waiver to the
Rating Agencies.

     Section 8.05 List of Certificateholders. Upon reasonable, prior written
request of three or more Certificateholders of record, for purposes of
communicating with other Certificateholders with respect to their rights under
this Agreement, the Trustee will afford such Certificateholders access during
business hours to the most recent list of Certificateholders held by the
Trustee.

                                   ARTICLE IX
            CONCERNING THE TRUSTEE AND THE SECURITIES ADMINISTRATOR

     Section 9.01 Duties of Trustee.

     (a) The Trustee, prior to the occurrence of an Event of Default and after
the curing or waiver of all Events of Default which may have occurred, and the
Securities Administrator each undertake to perform such duties and only such
duties as are specifically set forth in this Agreement as duties of the Trustee
and the Securities Administrator, respectively. If an Event of Default has
occurred and has not been cured or waived, the Trustee shall exercise such of
the rights and powers vested in it by this Agreement, and subject to Section
8.02(b) use the same degree of care and skill in their exercise, as a prudent
person would exercise under the circumstances in the conduct of his own affairs.

     (b) Upon receipt of all resolutions, certificates, statements, opinions,
reports, documents, orders or other instruments which are specifically required
to be furnished to the Trustee and the Securities Administrator pursuant to any
provision of this Agreement, the Trustee and the Securities Administrator,
respectively, shall examine them to determine whether they are in the form
required by this Agreement; provided, however, that neither the Trustee nor the
Securities Administrator shall be responsible for the accuracy or content of any
resolution, certificate, statement, opinion, report, document, order or other
instrument furnished by the

                                     -113-

<PAGE>

Master Servicer; provided, further, that neither the Trustee nor the Securities
Administrator shall be responsible for the accuracy or verification of any
calculation provided to it pursuant to this Agreement. If any such instrument is
found not to conform to the requirements of this Agreement in a material manner,
the Trustee shall take such action as it deems appropriate to have the
instrument corrected and if the instrument is not corrected to its satisfaction,
the Trustee will provide notice thereof to the Certificateholders and take such
further action as directed by the Certificateholders.

     (c) On each Distribution Date, the Securities Administrator shall make
monthly distributions and the final distribution to the Certificateholders from
funds in the Distribution Account as provided in Sections 6.01 and 10.01 herein
based solely on the report of the Master Servicer or the Servicers.

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

          (i) Prior to the occurrence of an Event of Default, and after the
     curing or waiver of all such Events of Default which may have occurred, the
     duties and obligations of the Trustee and the Securities Administrator
     shall be determined solely by the express provisions of this Agreement,
     neither the Trustee nor the Securities Administrator shall be liable except
     for the performance of their respective duties and obligations as are
     specifically set forth in this Agreement, no implied covenants or
     obligations shall be read into this Agreement against the Trustee or the
     Securities Administrator and, in the absence of bad faith on the part of
     the Trustee or the Securities Administrator, respectively, the Trustee or
     the Securities Administrator, respectively, may conclusively rely, as to
     the truth of the statements and the correctness of the opinions expressed
     therein, upon any certificates or opinions furnished to the Trustee or the
     Securities Administrator, respectively, and conforming to the requirements
     of this Agreement;

          (ii) Neither the Trustee nor the Securities Administrator shall be
     liable in its individual capacity for an error of judgment made in good
     faith by a Responsible Officer or Responsible Officers of the Trustee or an
     officer of the Securities Administrator, respectively, unless it shall be
     proved that the Trustee or the Securities Administrator, respectively, was
     negligent in ascertaining the pertinent facts;

          (iii) Neither the Trustee nor the Securities Administrator shall be
     liable with respect to any action taken, suffered or omitted to be taken by
     it in good faith in accordance with the directions of the Holders of
     Certificates evidencing Percentage Interests aggregating not less than 25%
     of the Trust Fund, if such action or non-action relates to the time, method
     and place of conducting any proceeding for any remedy available to the
     Trustee or the Securities Administrator, respectively, or exercising any
     trust or other power conferred upon the Trustee or the Securities
     Administrator, respectively, under this Agreement;

          (iv) The Trustee shall not be required to take notice or be deemed to
     have notice or knowledge of any default or Event of Default unless a
     Responsible Officer of

                                     -114-

<PAGE>

     the Trustee's Corporate Trust Office shall have actual knowledge thereof.
     In the absence of such notice, the Trustee may conclusively assume there is
     no such default or Event of Default;

          (v) The Trustee shall not in any way be liable by reason of any
     insufficiency in any Account held by or in the name of Trustee unless it is
     determined by a court of competent jurisdiction that the Trustee's gross
     negligence or willful misconduct was the primary cause of such
     insufficiency (except to the extent that the Trustee is obligor and has
     defaulted thereon);

          (vi) Anything in this Agreement to the contrary notwithstanding, in no
     event shall the Trustee or the Securities Administrator be liable for
     special, indirect or consequential loss or damage of any kind whatsoever
     (including but not limited to lost profits), even if the Trustee or the
     Securities Administrator, respectively, has been advised of the likelihood
     of such loss or damage and regardless of the form of action; and

          (vii) None of the Securities Administrator, the Depositor, the Master
     Servicer, any Servicer or the Trustee shall be responsible for the acts or
     omissions of the other, it being understood that this Agreement shall not
     be construed to render them partners, joint venturers or agents of one
     another.

     Neither the Trustee nor the Securities Administrator shall be required to
expend or risk its own funds or otherwise incur financial liability in the
performance of any of its duties hereunder, or in the exercise of any of its
rights or powers, if there is reasonable ground for believing that the repayment
of such funds or adequate indemnity against such risk or liability is not
reasonably assured to it, and none of the provisions contained in this Agreement
shall in any event require the Trustee or the Securities Administrator to
perform, or be responsible for the manner of performance of, any of the
obligations of the Master Servicer hereunder or under the Servicing Agreements,
except during such time, if any, as the Trustee shall be the successor to, and
be vested with the rights, duties, powers and privileges of, the Master Servicer
in accordance with the terms of this Agreement.

     (e) All funds received by the Master Servicer and the Securities
Administrator and required to be deposited in the Master Servicer Collection
Account or Distribution Account pursuant to this Agreement will be promptly so
deposited by the Master Servicer and the Securities Administrator.

     (f) Except for those actions that the Trustee or the Securities
Administrator is required to take hereunder, neither the Trustee nor the
Securities Administrator shall have any obligation or liability to take any
action or to refrain from taking any action hereunder in the absence of written
direction as provided hereunder.

     Section 9.02 Certain Matters Affecting the Trustee and the Securities
Administrator. Except as otherwise provided in Section 9.01:

          (i) The Trustee and the Securities Administrator may rely and shall be
     protected in acting or refraining from acting in reliance on any
     resolution, certificate of a Depositor, Master Servicer or Servicer,
     certificate of auditors or any other certificate,

                                     -115-

<PAGE>

     statement, instrument, opinion, report, notice, request, consent, order,
     appraisal, bond or other paper or document believed by it to be genuine and
     to have been signed or presented by the proper party or parties;

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

          (iii) Neither the Trustee nor the Securities Administrator shall be
     under any obligation to exercise any of the trusts or powers vested in it
     by this Agreement, other than its obligation to give notices pursuant to
     this Agreement, or to institute, conduct or defend any litigation hereunder
     or in relation hereto at the request, order or direction of any of the
     Certificateholders pursuant to the provisions of this Agreement, unless
     such Certificateholders shall have offered to the Trustee reasonable
     security or indemnity against the costs, expenses and liabilities which may
     be incurred therein or thereby. Nothing contained herein shall, however,
     relieve the Trustee of the obligation, upon the occurrence of an Event of
     Default of which a Responsible Officer of the Trustee's Corporate Trust
     Office has actual knowledge (which has not been cured or waived), subject
     to Section 8.02(b), to exercise such of the rights and powers vested in it
     by this Agreement, and to use the same degree of care and skill in their
     exercise, as a prudent person would exercise under the circumstances in the
     conduct of his own affairs;

          (iv) Prior to the occurrence of an Event of Default hereunder and
     after the curing or waiver of all Events of Default which may have
     occurred, neither the Trustee nor the Securities Administrator shall be
     liable in its individual capacity for any action taken, suffered or omitted
     by it in good faith and believed by it to be authorized or within the
     discretion or rights or powers conferred upon it by this Agreement;

          (v) Neither the Trustee nor the Securities Administrator shall be
     bound to make any investigation into the facts or matters stated in any
     resolution, certificate, statement, instrument, opinion, report, notice,
     request, consent, order, approval, bond or other paper or document, unless
     requested in writing to do so by Holders of Certificates evidencing
     Percentage Interests aggregating not less than 25% of the Trust Fund and
     provided that the payment within a reasonable time to the Trustee or the
     Securities Administrator, as applicable, of the costs, expenses or
     liabilities likely to be incurred by it in the making of such investigation
     is, in the opinion of the Trustee or the Securities Administrator, as
     applicable, reasonably assured to the Trustee or the Securities
     Administrator, as applicable, by the security afforded to it by the terms
     of this Agreement. The Trustee or the Securities Administrator may require
     reasonable indemnity against such expense or liability as a condition to
     taking any such action. The reasonable expense of every such examination
     shall be paid by the Certificateholders requesting the investigation;

          (vi) The Trustee and the Securities Administrator may execute any of
     the trusts or powers hereunder or perform any duties hereunder either
     directly or through Affiliates, agents or attorneys; provided, however,
     that the Trustee may not appoint any agent to

                                     -116-

<PAGE>

     perform its custodial functions with respect to the Mortgage Files or
     paying agent functions under this Agreement without the express written
     consent of the Securities Administrator, which consent will not be
     unreasonably withheld. Neither the Trustee nor the Securities Administrator
     shall be liable or responsible for the misconduct or negligence of any of
     the Trustee's or the Securities Administrator's agents or attorneys or a
     custodian or paying agent appointed hereunder by the Trustee or the
     Securities Administrator with due care and, when required, with the consent
     of the Securities Administrator;

          (vii) Should the Trustee or the Securities Administrator deem the
     nature of any action required on its part, other than a payment or transfer
     under Subsection 4.01(b) or Section 4.02, to be unclear, the Trustee or the
     Securities Administrator, respectively, may require prior to such action
     that it be provided by the Depositor with reasonable further instructions;

          (viii) The right of the Trustee or the Securities Administrator to
     perform any discretionary act enumerated in this Agreement shall not be
     construed as a duty, and neither the Trustee nor the Securities
     Administrator shall be accountable for other than its negligence or willful
     misconduct in the performance of any such act;

          (ix) Neither the Trustee nor the Securities Administrator shall be
     required to give any bond or surety with respect to the execution of the
     trust created hereby or the powers granted hereunder, except as provided in
     Subsection 9.07; and

          (x) Neither the Trustee nor the Securities Administrator shall have
     any duty to conduct any affirmative investigation as to the occurrence of
     any condition requiring the repurchase of any Mortgage Loan by the Seller
     pursuant to this Agreement or the Mortgage Loan Purchase Agreement, as
     applicable, or the eligibility of any Mortgage Loan for purposes of this
     Agreement.

          (xi) Any permissive right of the Trustee hereunder shall not be
     construed as a duty.

     Section 9.03 Trustee and Securities Administrator Not Liable for
Certificates or Mortgage Loans. The recitals contained herein and in the
Certificates (other than the signature and countersignature of the Trustee on
the Certificates) shall be taken as the statements of the Depositor, and neither
the Trustee nor the Securities Administrator shall have any responsibility for
their correctness. Neither the Trustee nor the Securities Administrator makes
any representation as to the validity or sufficiency of the Certificates (other
than the signature and countersignature of the Trustee on the Certificates) or
of any Mortgage Loan except as expressly provided in Sections 2.02 and 2.05
hereof; provided, however, that the foregoing shall not relieve the Trustee or
the Custodian of the obligation to review the Mortgage Files pursuant to
Sections 2.02 and 2.04. The Trustee's signature and countersignature (or
countersignature of its agent) on the Certificates shall be solely in its
capacity as Trustee of the Trust Fund and shall not constitute the Certificates
an obligation of the Trustee in any other capacity. Neither the Trustee or the
Securities Administrator shall be accountable for the use or application by the
Depositor of any of the Certificates or of the proceeds of such Certificates, or
for the use or application of any

                                     -117-

<PAGE>

funds paid to the Depositor with respect to the Mortgage Loans. Subject to the
provisions of Section 2.05, neither the Trustee nor the Securities Administrator
shall not be responsible for the legality or validity of this Agreement or any
document or instrument relating to this Agreement, the validity of the execution
of this Agreement or of any supplement hereto or instrument of further
assurance, or the validity, priority, perfection or sufficiency of the security
for the Certificates issued hereunder or intended to be issued hereunder.
Neither the Trustee nor the Securities Administrator shall at any time have any
responsibility or liability for or with respect to the legality, validity and
enforceability of any Mortgage or any Mortgage Loan, or the perfection and
priority of any Mortgage or the maintenance of any such perfection and priority,
or for or with respect to the sufficiency of the Trust Fund or its ability to
generate the payments to be distributed to Certificateholders, under this
Agreement. Neither the Trustee nor the Securities Administrator shall have any
responsibility for filing any financing or continuation statement in any public
office at any time or to otherwise perfect or maintain the perfection of any
security interest or lien granted to it hereunder or to record this Agreement.

     Section 9.04 Trustee and Securities Administrator May Own Certificates. The
Trustee and the Securities Administrator in its individual capacity or in any
capacity other than as Trustee hereunder may become the owner or pledgee of any
Certificates with the same rights it would have if it were not Trustee or the
Securities Administrator, as applicable, and may otherwise deal with the parties
hereto.

     Section 9.05 Trustee's and Securities Administrator's Fees and Expenses.
The fees and expenses of the Trustee and the Securities Administrator shall be
paid by the Master Servicer in accordance with a side letter agreement. In
addition, the Trustee and the Securities Administrator will be entitled to
recover from the Master Servicer Collection Account pursuant to Section 4.03(b)
all reasonable out-of-pocket expenses, disbursements and advances and the
expenses of the Trustee and the Securities Administrator, respectively, in
connection with any Event of Default, any breach of this Agreement or any claim
or legal action (including any pending or threatened claim or legal action)
incurred or made by the Trustee or the Securities Administrator, respectively,
in the administration of the trusts hereunder (including the reasonable
compensation, expenses and disbursements of its counsel) except any such
expense, disbursement or advance as may arise from its negligence or intentional
misconduct or which is the responsibility of the Certificateholders or the Trust
Fund hereunder. If funds in the Master Servicer Collection Account are
insufficient therefor, the Trustee and the Securities Administrator shall
recover such expenses from the Depositor. Such compensation and reimbursement
obligation shall not be limited by any provision of law in regard to the
compensation of a trustee of an express trust.

     Section 9.06 Eligibility Requirements for Trustee and Securities
Administrator.

     (a) The Trustee and any successor Trustee and the Securities Administrator
and any successor Securities Administrator shall during the entire duration of
this Agreement be a state bank or trust company or a national banking
association organized and doing business under the laws of such state or the
United States of America, authorized under such laws to exercise corporate trust
powers, having a combined capital and surplus and undivided profits of at least
$40,000,000 or, in the case of a successor Trustee, $50,000,000, subject to
supervision or examination by federal or state authority and, in the case of the
Trustee, rated "BBB" or higher

                                     -118-

<PAGE>

by S&P and "Aaa1" or higher by Moody's with respect to their long-term rating
and rated "BBB" or higher by S&P and "Baa1" or higher by Moody's with respect to
any outstanding long-term unsecured unsubordinated debt, and, in the case of a
successor Trustee or successor Securities Administrator other than pursuant to
Section 9.10, rated in one of the two highest long-term debt categories of, or
otherwise acceptable to, each of the Rating Agencies. If the Trustee publishes
reports of condition at least annually, pursuant to law or to the requirements
of the aforesaid supervising or examining authority, then for the purposes of
this Section 9.06 the combined capital and surplus of such corporation shall be
deemed to be its total equity capital (combined capital and surplus) as set
forth in its most recent report of condition so published. In case at any time
the Trustee or the Securities Administrator shall cease to be eligible in
accordance with the provisions of this Section 9.06, the Trustee or the
Securities Administrator shall resign immediately in the manner and with the
effect specified in Section 9.08.

     (b) In addition, 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 of the
relevant entity, (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" by S&P or "A" Moody's. If no successor Securities Administrator shall
have been appointed and shall have accepted appointment within 60 days after the
Securities Administrator ceases to be the Securities Administrator pursuant to
Section 9.08, then the Trustee shall perform the duties of the Securities
Administrator pursuant to this Agreement until such time as a new Securities
Administrator is appointed; provided, however, the Trustee shall have the same
right to appoint, or petition a court of competent jurisdiction to appoint, a
successor securities administrator as it has with respect to appointing or
petitioning a court of competent jurisdiction to appoint a successor master
servicer under section 8.02. The Trustee shall notify the Rating Agencies of any
change of Securities Administrator.

     Section 9.07 Insurance. The Securities Administrator, at its own expense,
shall at all times maintain and keep in full force and effect: (i) fidelity
insurance, (ii) theft of documents insurance and (iii) forgery insurance (which
may be collectively satisfied by a "Financial Institution Bond" and/or a
"Bankers' Blanket Bond"). All such insurance shall be in amounts, with standard
coverage and subject to deductibles, as are customary for insurance typically
maintained by banks or their affiliates which act as custodians for
investor-owned mortgage pools. A certificate of an officer of the Securities
Administrator as to the Securities Administrator's compliance with this Section
9.07 shall be furnished to any Certificateholder upon reasonable written
request.

     Section 9.08 Resignation and Removal of the Trustee and Securities
Administrator.

     (a) The Trustee and the Securities Administrator may at any time resign and
be discharged from the trust hereby created by giving written notice thereof to
the Depositor and the Master Servicer, with a copy to the Rating Agencies. Upon
receiving such notice of resignation, the Depositor shall promptly appoint a
successor Trustee or successor Securities Administrator, as applicable, by
written instrument, in triplicate, one copy of which instrument shall be
delivered to each of the resigning Trustee or Securities Administrator, as
applicable, the successor Trustee or Securities Administrator, as applicable. If
no successor Trustee or Securities Administrator shall have been so appointed
and have accepted appointment within 30

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<PAGE>

days after the giving of such notice of resignation, the resigning Trustee or
Securities Administrator may petition any court of competent jurisdiction for
the appointment of a successor Trustee or Securities Administrator. If the
Securities Administrator and the Master Servicer are the same entity, then at
any time the Securities Administrator resigns or is removed as Securities
Administrator, the Master Servicer shall likewise be terminated as Master
Servicer.

     (b) If at any time the Trustee or the Securities Administrator shall cease
to be eligible in accordance with the provisions of Section 9.06 and shall fail
to resign after written request therefor by the Depositor or if at any time the
Trustee or the Securities Administrator shall become incapable of acting, or
shall be adjudged a bankrupt or insolvent, or a receiver of the Trustee or the
Securities Administrator, as applicable, or of its property shall be appointed,
or any public officer shall take charge or control of the Trustee or the
Securities Administrator, as applicable, or of its property or affairs for the
purpose of rehabilitation, conservation or liquidation, then the Depositor shall
promptly remove the Trustee, or shall be entitled to remove the Securities
Administrator, as applicable, and appoint a successor Trustee or Securities
Administrator, as applicable, by written instrument, in triplicate, one copy of
which instrument shall be delivered to each of the Trustee or Securities
Administrator, as applicable, so removed, the successor Trustee or Securities
Administrator, as applicable.

     (c) The Holders of Certificates evidencing Percentage Interests aggregating
not less than 51% of the Trust Fund may at any time remove the Trustee or the
Securities Administrator and appoint a successor Trustee or Securities
Administrator by written instrument or instruments, in quadruplicate, signed by
such Holders or their attorneys-in-fact duly authorized, one complete set of
which instruments shall be delivered to the Depositor, the Trustee, the
Securities Administrator (if the Trustee is removed), the Trustee (if the
Securities Administrator is removed), and the Trustee or Securities
Administrator so removed and the successor so appointed.

     (d) No resignation or removal of the Trustee or the Securities
Administrator and appointment of a successor Trustee or Securities Administrator
pursuant to any of the provisions of this Section 9.08 shall become effective
except upon appointment of and acceptance of such appointment by the successor
Trustee or Securities Administrator as provided in Section 9.09.

     Section 9.09 Successor Trustee and Successor Securities Administrator.

     (a) Any successor Trustee or Securities Administrator appointed as provided
in Section 9.08 shall execute, acknowledge and deliver to the Depositor, the
Master Servicer and its predecessor Trustee or Securities Administrator an
instrument accepting such appointment hereunder. The resignation or removal of
the predecessor Trustee or Securities Administrator shall then become effective
and such successor Trustee or Securities Administrator, without any further act,
deed or conveyance, shall become fully vested with all the rights, powers,
duties and obligations of its predecessor hereunder, with like effect as if
originally named as Trustee or Securities Administrator herein. The predecessor
Trustee or Securities Administrator shall after payment of its outstanding fees
and expenses promptly deliver to the successor Trustee or Securities
Administrator, as applicable, all assets and records of the Trust held by it
hereunder, and the Depositor and the predecessor Trustee or Securities
Administrator, as applicable, shall execute and deliver such instruments and do
such other things as may reasonably be required for

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<PAGE>

more fully and certainly vesting and confirming in the successor Trustee or
Securities Administrator, as applicable, all such rights, powers, duties and
obligations.

     (b) No successor Trustee or Securities Administrator shall accept
appointment as provided in this Section 9.09 unless at the time of such
acceptance such successor Trustee or Securities Administrator shall be eligible
under the provisions of Section 9.06.

     (c) Upon acceptance of appointment by a successor Trustee or Securities
Administrator as provided in this Section 9.09, the successor Trustee or
Securities Administrator shall mail notice of the succession of such Trustee or
Securities Administrator hereunder to all Certificateholders at their addresses
as shown in the Certificate Register and to the Rating Agencies. The Depositor
shall pay the cost of any mailing by the successor Trustee or Securities
Administrator.

     Section 9.10 Merger or Consolidation of Trustee or Securities
Administrator. Any state bank or trust company or national banking association
into which the Trustee or the Securities Administrator may be merged or
converted or with which it may be consolidated or any state bank or trust
company or national banking association resulting from any merger, conversion or
consolidation to which the Trustee or the Securities Administrator,
respectively, shall be a party, or any state bank or trust company or national
banking association succeeding to all or substantially all of the corporate
trust business of the Trustee or the Securities Administrator, respectively,
shall be the successor of the Trustee or the Securities Administrator,
respectively, hereunder, provided such state bank or trust company or national
banking association shall be eligible under the provisions of Section 9.06. Such
succession shall be valid without the execution or filing of any paper or any
further act on the part of any of the parties hereto, anything herein to the
contrary notwithstanding.

     Section 9.11 Appointment of Co-Trustee or Separate Trustee.

     (a) Notwithstanding any other provisions hereof, at any time, for the
purpose of meeting any legal requirements of any jurisdiction in which any part
of the Trust or property constituting the same may at the time be located, the
Depositor and the Trustee acting jointly shall have the power and shall execute
and deliver all instruments to appoint one or more Persons approved by the
Trustee and the Depositor to act as co-trustee or co-trustees, jointly with the
Trustee, or separate trustee or separate trustees, of all or any part of the
Trust, and to vest in such Person or Persons, in such capacity, such title to
the Trust, or any part thereof, and, subject to the other provisions of this
Section 9.11, such powers, duties, obligations, rights and trusts as the
Depositor and the Trustee may consider necessary or desirable.

     (b) If the Depositor shall not have joined in such appointment within 15
days after the receipt by it of a written request so to do, the Trustee shall
have the power to make such appointment without the Depositor.

     (c) No co-Master Servicer or separate trustee hereunder shall be required
to meet the terms of eligibility as a successor trustee under Section 9.06
hereunder and no notice to Certificateholders of the appointment of
co-trustee(s) or separate trustee(s) shall be required under Section 9.08
hereof.

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<PAGE>

     (d) In the case of any appointment of a co-trustee or separate trustee
pursuant to this Section 9.11, all rights, powers, duties and obligations
conferred or imposed upon the Trustee and required to be conferred on such
co-trustee shall be conferred or imposed upon and exercised or performed by the
Trustee and such separate trustee or co-trustee jointly, except to the extent
that under any law of any jurisdiction in which any particular act or acts are
to be performed (whether as Trustee hereunder or as successor to the Master
Servicer hereunder), the Trustee shall be incompetent or unqualified to perform
such act or acts, in which event such rights, powers, duties and obligations
(including the holding of title to the Trust or any portion thereof in any such
jurisdiction) shall be exercised and performed by such separate trustee or
co-trustee at the direction of the Trustee.

     (e) Any notice, request or other writing given to the Trustee shall be
deemed to have been given to each of the then separate trustees and co-trustees,
as effectively as if given to each of them. Every instrument appointing any
separate trustee or co-trustee shall refer to this Agreement and the conditions
of this Article IX. Each separate trustee and co-trustee, upon its acceptance of
the trusts conferred, shall be vested with the estates or property specified in
its instrument of appointment, either jointly with the Trustee or separately, as
may be provided therein, subject to all the provisions of this Agreement,
specifically including every provision of this Agreement relating to the conduct
of, affecting the liability of, or affording protection to, the Trustee. Every
such instrument shall be filed with the Trustee.

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

     (g) No Trustee under this Agreement shall be personally liable by reason of
any act or omission of another Trustee under this Agreement. The Depositor and
the Trustee acting jointly may at any time accept the resignation of or remove
any separate trustee or co-trustee.

     Section 9.12 Federal Information Returns and Reports to Certificateholders;
REMIC Administration.

     (a) REMIC elections as set forth in the Preliminary Statement shall be made
on Forms 1066 or other appropriate federal tax or information return for the
taxable year ending on the last day of the calendar year in which the
Certificates are issued. The regular interests and residual interest in each
REMIC shall be as designated in the Preliminary Statement.

     (b) The Closing Date is hereby designated as the "Startup Day" of each
REMIC within the meaning of section 860G(a)(9) of the Code. The latest possible
maturity date for purposes of Treasury Regulation 1.860G-1(a)(4) will be the
Latest Possible Maturity Date.

     (c) The Securities Administrator shall, for federal income tax purposes,
maintain books and records with respect to each REMIC on a calendar year and on
an accrual basis.

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<PAGE>

     (d) The Securities Administrator shall 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 Securities Administrator
shall pay any and all tax-related expenses (not including taxes) of each REMIC,
including but not limited to any professional fees or expenses related to audits
or any administrative or judicial proceedings with respect to such REMIC that
involve the Internal Revenue Service or state tax authorities, but only to the
extent that (i) such expenses are ordinary or routine expenses, including
expenses of a routine audit but not expenses of litigation (except as described
in (ii)); or (ii) such expenses or liabilities (including taxes and penalties)
are attributable to the negligence or willful misconduct of the Securities
Administrator in fulfilling its duties hereunder (including its duties as tax
return preparer). The Securities Administrator shall be entitled to
reimbursement of expenses to the extent provided in clause (i) above from the
Distribution Account, provided, however, the Securities Administrator shall not
be entitled to reimbursement for expenses incurred in connection with the
preparation of tax returns and other reports as required by this Section.

     (e) The Securities Administrator shall prepare and file, and the Trustee
shall sign, all of each REMIC's and the Trust Fund's federal and appropriate
state tax and information returns as such REMIC's direct representative. The
expenses of preparing and filing such returns shall be borne by the Securities
Administrator.

     (f) The Securities Administrator or its designee shall perform on behalf of
each 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, if required by the Code, the REMIC
Provisions, or other such guidance, the Securities Administrator shall provide,
upon receipt of additional reasonable compensation, to the Treasury or other
governmental authority such information as is necessary for the application of
any tax relating to the transfer of a Residual Certificate to any disqualified
person or organization pursuant to Treasury Regulation 1.860E-2(a)(5) and any
person designated in Section 860E(e)(3) of the Code.

     (g) The Securities Administrator and the Holders of Certificates shall take
any action or cause any REMIC to take any action necessary to create or maintain
the status of any REMIC as a REMIC under the REMIC Provisions and shall assist
each other as necessary to create or maintain such status. Neither the
Securities Administrator nor the Holder of any Residual Certificate shall
knowingly take any action, cause any REMIC 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 (i) endanger the status of any
REMIC as a REMIC or (ii) result in the imposition of a tax upon any REMIC
(including but not limited to the tax on prohibited transactions as defined in
Code Section 860F(a)(2) and the tax on prohibited contributions set forth on
Section 860G(d) of the Code) (either such event, an "Adverse REMIC Event")
unless the Securities Administrator has received a REMIC Opinion (at the expense
of the party seeking to take such action) to the effect that the contemplated
action will not endanger such status or result in the imposition of such a tax.
In addition, prior to taking any action with respect to any REMIC or the assets
therein, or causing any REMIC to take any action, which is not expressly
permitted under the terms of this Agreement, any Holder of a Residual
Certificate will consult with the Securities Administrator, in writing, with
respect to whether such action could cause an Adverse REMIC Event to occur with
respect to any REMIC, and no such Person shall take any

                                     -123-
<PAGE>

such action or cause any REMIC to take any such action as to which the
Securities Administrator has advised it in writing that an Adverse REMIC Event
could occur; provided, however, that if no Adverse REMIC Event would occur but
such action could result in the imposition of additional taxes on the Residual
Certificateholders, no such Person shall take any such action, or cause any
REMIC to take any such action without the written consent of the Residual
Certificateholders.

     (h) Each Holder of a Residual Certificate shall pay when due any and all
taxes imposed on the related REMIC by federal or state governmental authorities.
To the extent that such taxes are not paid by a Residual Certificateholder, the
Securities Administrator shall pay any remaining REMIC taxes out of current or
future amounts otherwise distributable to the Holder of the Residual Certificate
in any such REMIC or, if no such amounts are available, out of other amounts
held in the Distribution Account, and shall reduce amounts otherwise payable to
holders of regular interests in any such REMIC, as the case may be.

     (i) The Securities Administrator shall prepare and file with the Internal
Revenue Service ("IRS"), on behalf of each of REMIC 1 and the Upper Tier REMIC,
an application for an employer identification number on IRS Form SS-4 or by any
other acceptable method. The Securities Administrator shall also file a Form
8811 as required. The Securities Administrator, upon receipt from the IRS of the
Notice of Taxpayer Identification Number Assigned, shall upon request promptly
forward a copy of such notice to the Depositor. The Securities Administrator
shall furnish any other information that is required by the Code and regulations
thereunder to be made available to Certificateholders. The Depositor shall cause
each Servicer to provide the Securities Administrator with such information as
is necessary for the Securities Administrator to prepare such reports.

     (j) No additional contributions of assets shall be made to any REMIC,
except as expressly provided in this Agreement.

     (k) The Securities Administrator shall not enter into any arrangement by
which any REMIC will receive a fee or other compensation for services.

     (l) The Class A-R Holder shall act as "tax matters person" with respect to
each REMIC and irrevocably appoints the Securities Administrator to act as its
agent in such roles.

     (m) The Securities Administrator shall prepare or cause to be prepared on
behalf of the Trust Fund, based upon information calculated in accordance with
this Agreement pursuant to instructions given by the Depositor, the Trustee
shall sign, and the Securities Administrator shall file federal tax returns, all
in accordance with Section 9.12 hereof. The Securities Administrator shall
prepare and file, and the Trustee shall sign, such state income tax returns and
such other returns as may be required by applicable law relating to the Trust
Fund, and, if required by state law, and shall file any other documents to the
extent required by applicable state tax law (to the extent such documents are in
the Securities Administrator's possession). The Securities Administrator shall
forward copies to the Depositor of all such returns and Form 1099 supplemental
tax information and such other information within the control of the
Securities Administrator as the Depositor may reasonably request in writing, and
shall distribute to each Certificateholder such forms and furnish such
information within the control of the

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<PAGE>

Securities Administrator as are required by the Code and the REMIC Provisions to
be furnished to them, and will prepare and distribute to Certificateholders Form
1099 (supplemental tax information) (or otherwise furnish information within the
control of the Securities Administrator) to the extent required by applicable
law.

     (n) None of the Securities Administrator, the Trustee or the Depositor, as
assignees under this Agreement, shall provide any consent pursuant to this
Agreement or knowingly take any action under this Agreement that would conflict
with or violate the provisions of this Section 9.12.

     (o) Notwithstanding any other provision of this Agreement, the Trustee and
the Securities Administrator shall comply with all federal withholding
requirements respecting payments to Certificateholders of interest or original
issue discount on the Mortgage Loans, that the Trustee or the Securities
Administrator reasonably believes are applicable under the Code. The consent of
Certificateholders shall not be required for such withholding. In the event the
Trustee or the Securities Administrator withholds any amount from interest or
original issue discount payments or advances thereof to any Certificateholder
pursuant to federal withholding requirements, the Trustee or the Securities
Administrator shall, together with its monthly report to such
Certificateholders, indicate such amount withheld.

     (p) The Trustee and the Securities Administrator agree to indemnify the
Trust Fund and the Depositor for any taxes and costs including, without
limitation, any reasonable attorneys fees imposed on or incurred by the Trust
Fund, the Depositor or the Trustee, as a result of a breach of the Trustee's
covenants and the Securities Administrator's covenants, respectively, set forth
in this Section 9.12; provided, however, such liability and obligation to
indemnify in this paragraph shall not be joint and several and neither the
Trustee nor the Securities Administrator shall be liable or be obligated to
indemnify the Trust Fund for the failure by the other to perform any duty under
this Agreement or the breach by the other of any covenant in this Agreement.

     (q) The Securities Administrator covenants and agrees that it shall act as
agent (and the Securities Administrator is hereby appointed to act as agent) of
the Tax Matters Person on behalf of each of the REMICs provided for herein and
that in such capacity it shall: (a) to the extent that they are under its
control conduct the affairs of each of the REMICs provided for herein at all
times that any Certificates are outstanding so as to maintain the status of each
of the REMICs provided for herein as a REMIC under the REMIC Provisions; (b) not
knowingly or intentionally take any action or omit to take any action that would
cause the termination of the REMIC status of any of the REMICs provided for
herein or result in the imposition of tax upon any such REMIC; (c) not knowingly
or intentionally take any action or omit to take any action that would cause the
termination of the grantor trust status under Subpart E, Part I of Subchapter J
of the Code of any of the grantor trusts provided for herein or result in the
imposition of tax upon any such grantor trust; and (d) as and when necessary and
appropriate, represent each of the REMICs provided for herein in any
administrative or judicial proceedings relating to an examination or audit by
any governmental taxing authority, request an administrative adjustment as to
any taxable year of any of the REMICs provided for herein, enter into settlement
agreements with any governmental taxing agency, extend any statute of
limitations relating to any tax item of any of the REMICs provided for herein,
and otherwise act on behalf of each of

                                     -125-

<PAGE>

the REMICs provided for herein in relation to any tax matter involving any of
such REMICs or any controversy involving the Trust Fund.

     (r) Each of the Depositor, the Master Servicer, the Securities
Administrator and the Trustee agrees not to take or omit to take knowingly or
intentionally, any action or omit to take any action that would cause the
termination of the REMIC status of any of the REMICs provided for herein or
result in the imposition of a tax upon any of the REMICs provided for herein.

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<PAGE>

                                    ARTICLE X
                                   TERMINATION

     Section 10.01 Termination upon Liquidation or Repurchase of all Mortgage
Loans.

     (a) Subject to Section 10.03, the obligations and responsibilities of the
Depositor, the Master Servicer, the Securities Administrator and the Trustee
created hereby with respect to the Trust Fund shall terminate upon the earlier
of (a) an Optional Termination and (b) the later of (i) the maturity or other
liquidation of the last Mortgage Loan remaining in the Trust Fund (or any
Monthly Advance with respect thereto) and the disposition of all REO Property
and (ii) the distribution to Certificateholders of all amounts required to be
distributed to them pursuant to this Agreement, as applicable. In no event shall
the trusts 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's,
living on the date hereof and (ii) the Latest Possible Maturity Date.

     (b) On or before the Determination Date following the Initial Optional
Termination Date, the Securities Administrator shall attempt to terminate the
Trust Fund by conducting an auction of all of the Mortgage Loans and REO
Properties via a solicitation of bids from at least three (3) bidders, each of
which shall be a nationally recognized participant in mortgage finance (the
"Auction"). The Depositor and the Securities Administrator agree to work in good
faith to develop bid procedures in advance of the Initial Optional Termination
Date to govern the operation of the Auction. The Securities Administrator shall
be entitled to retain an investment banking firm and/or other agents in
connection with the Auction, the cost of which shall be included in the Optional
Termination Price (unless an Optional Termination does not occur in which case
such costs shall be an expense of the Trust Fund). The Securities Administrator
shall accept the highest bid received at the Auction; provided that the amount
of such bid equals or exceeds the Optional Termination Price. The Securities
Administrator shall determine the Optional Termination Price based upon
information provided by (i) the Master Servicer with respect to the amounts
described in clauses (A) and (B) of the definition of "Optional Termination
Price" (other than Securities Administrator's expenses) and (ii) the Depositor
with respect to the information described in clause (C) of the definition of
"Optional Termination Price." The Securities Administrator may conclusively rely
upon the information provided to it in accordance with the immediately preceding
sentence and shall not have any liability for the failure of any party to
provide such information.

     If an Optional Termination does not occur as a result of the Auction's
failure to achieve the Optional Termination Price, the Master Servicer may, on
any Distribution Date following such Auction, at its option, terminate the Trust
Fund by purchasing all of the Mortgage Loans and REO Properties at a price equal
to the Optional Termination Price. In connection with such termination, the
Optional Termination Price shall be delivered to the Securities Administrator no
later than the Business Day immediately preceding the related Distribution Date.
Notwithstanding anything to the contrary herein, the Optional Termination Amount
paid to the Securities Administrator by the winning bidder at the Auction or by
the Master Servicer shall be deposited by the Securities Administrator directly
into the Distribution Account immediately upon receipt. Upon any termination as
a result of an Auction, the Securities Administrator shall, out of the Optional
Termination Amount deposited into the Distribution Account, (x) pay the

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<PAGE>

Securities Administrator its costs and expenses necessary to conduct the Auction
and any other unreimbursed amounts owing to it and (y) pay to the Master
Servicer or Servicer, the aggregate amount of any unreimbursed out-of-pocket
costs and expenses owed to the Master Servicer or Servicer and any unpaid or
unreimbursed Servicing Fees, Monthly Advances and Servicing Advances.

     (c) Notwithstanding anything to the contrary in clause (b) above, in the
event that the Securities Administrator and the Trustee receive the written
opinion of a nationally recognized participant in mortgage finance acceptable to
the Seller that the Mortgage Loans and REO Properties to be included in the
Auction will not be saleable at a price sufficient to achieve the Optional
Termination Price, the Securities Administrator need not conduct the Auction. In
such event, the Master Servicer shall have the option to purchase the Mortgage
Loans and REO Properties at the Optional Termination Price as of the Initial
Optional Termination Date.

     Section 10.02 Final Distribution on the Certificates.

     If on any Determination Date, (i) the Securities Administrator determines
that there are no Outstanding Mortgage Loans and no other funds or assets in the
Trust Fund other than the funds in the Master Servicer Collection Account, the
Securities Administrator shall send a final distribution notice promptly to each
Certificateholder or (ii) the Securities Administrator determines that a Class
of Certificates shall be retired after a final distribution on such Class, the
Securities Administrator shall notify the Certificateholders within seven (7)
Business Days after such Determination Date that the final distribution in
retirement of such Class of Certificates is scheduled to be made on the
immediately following Distribution Date. Any final distribution made pursuant to
the immediately preceding sentence will be made only upon presentation and
surrender of the Certificates at the office of the Securities Administrator.

     Notice of any termination of the Trust Fund, specifying the Distribution
Date on which Certificateholders may surrender their Certificates for payment of
the final distribution and cancellation, shall be given promptly by the
Securities Administrator by letter to Certificateholders mailed no later than
the last calendar day of the month immediately preceding the month of such final
distribution (or with respect to an Auction, mailed no later than one Business
Day following completion of such Auction). Any such notice shall specify (a) the
Distribution Date upon which final distribution on the Certificates will be made
upon presentation and surrender of Certificates at the office therein
designated, (b) the location of the office or agency at which such presentation
and surrender must be made, and (c) that the Record Date otherwise applicable to
such Distribution Date is not applicable, distributions being made only upon
presentation and surrender of the Certificates at the office therein specified.
The Securities Administrator will give such notice to each Rating Agency at the
time such notice is given to Certificateholders.

     In the event such notice is given, the Master Servicer shall cause all
funds in the Master Servicer Collection Account to be deposited in the
Distribution Account on the Business Day prior to the applicable Distribution
Date in an amount equal to the final distribution in respect of the
Certificates. Upon such final deposit with respect to the Trust Fund and the
receipt by the Trustee, or its Custodian, of a Request for Release therefor, the
Trustee, or its Custodian, shall

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<PAGE>

promptly release to the Securities Administrator or the Master Servicer, as
applicable, the Mortgage Files for the Mortgage Loans.

     Upon presentation and surrender of the Certificates, the Securities
Administrator shall cause to be distributed to Certificateholders of each Class
the amounts allocable to such Certificates held in the Distribution Account in
the order and priority set forth in Section 6.01 hereof on the final
Distribution Date and in proportion to their respective Percentage Interests.

     In the event that any affected Certificateholders shall not surrender
Certificates for cancellation within six months after the date specified in the
above-mentioned written notice, the Securities Administrator shall give a second
written notice to the remaining Certificateholders to surrender their
Certificates for cancellation and receive the final distribution with respect
thereto. If within six months after the second notice all the applicable
Certificates shall not have been surrendered for cancellation, the Securities
Administrator may take appropriate steps, or may appoint an agent to take
appropriate steps, to contact the remaining Certificateholders concerning
surrender of their Certificates, and the cost thereof shall be paid out of the
funds and other assets that remain a part of the Trust Fund. If within one year
after the second notice all Certificates shall not have been surrendered for
cancellation, the Class A-R Certificateholders shall be entitled to all
unclaimed funds and other assets of the Trust Fund that remain subject hereto.
Upon payment to the Class A-R Certificateholders of such funds and assets, the
Securities Administrator shall have no further duties or obligations with
respect thereto.

     Section 10.03 Additional Termination Requirements.

     (a) In the event the Securities Administrator or the Master Servicer
exercises its purchase option as provided in Section 10.01, the Trust Fund shall
be terminated in accordance with the following additional requirements, unless
the Securities Administrator shall have been furnished with an Opinion of
Counsel to the effect that the failure of the Trust Fund to comply with the
requirements of this Section will not (i) result in the imposition of taxes on
"prohibited transactions" of the Trust Fund as defined in Section 860F of the
Code or (ii) cause any REMIC constituting part of the Trust Fund to fail to
qualify as a REMIC at any time that any Certificates are outstanding:

          (i) Within 90 days prior to the final Distribution Date, the
     Securities Administrator shall adopt and sign a plan of complete
     liquidation of the Trust Fund as provided to it by the terminating
     purchaser, meeting the requirements of a "qualified liquidation" under
     Section 860F of the Code and any regulations thereunder; and

          (ii) At or after the time of adoption of such a plan of complete
     liquidation and at or prior to the final Distribution Date, the Securities
     Administrator shall sell all of the assets of the Trust Fund for cash
     pursuant to the terms of the plan of complete liquidation.

     (b) By their acceptance of Certificates, the Holders thereof hereby agree
to appoint the Securities Administrator as their attorney in fact to: (i) adopt
such a plan of complete liquidation (and the Certificateholders hereby appoint
the Securities Administrator as their attorney in fact to sign such plan) as
appropriate and (ii) to take such other action in connection

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<PAGE>

therewith as may be reasonably required to carry out such plan of complete
liquidation all in accordance with the terms hereof.

                                   ARTICLE XI
                            MISCELLANEOUS PROVISIONS

     Section 11.01 Intent of Parties. The parties intend that each REMIC shall
be treated as a REMIC for federal income tax purposes and that the provisions of
this Agreement should be construed in furtherance of this intent.

     Section 11.02 Amendment.

     (a) This Agreement may be amended from time to time by the Depositor, the
Master Servicer, the Securities Administrator and the Trustee, and without the
consent of any of the Certificateholders to:

               (i) to cure any ambiguity or correct any mistake,

               (ii) to correct, modify or supplement any provision herein which
     may be inconsistent with any other provision herein,

               (iii) to add any other provisions with respect to matters or
     questions arising under this Agreement, or

               (iv) to modify, alter, amend, add to or rescind any of the terms
     or provisions contained in this Agreement, provided, however, that, in the
     case of clauses (iii) and (iv), such amendment will not, as evidenced by an
     Opinion of Counsel addressed to the Securities Administrator to such
     effect, adversely affect in any material respect the interests of any
     Certificateholder; provided, further, however, that such amendment will be
     deemed to not adversely affect in any material respect the interest of any
     Holder if the Person requesting such amendment obtains a letter from each
     Rating Agency stating that such amendment will not result in a reduction or
     withdrawal of its rating of any Class of the Certificates, it being
     understood and agreed that any such letter in and of itself will not
     represent a determination as to the materiality of any such amendment and
     will represent a determination only as to the credit issues affecting any
     such rating.

     Notwithstanding the foregoing, without the consent of the
Certificateholders, the Depositor, the Master Servicer, the Securities
Administrator and the Trustee may at any time and from time to time amend this
Agreement to modify, eliminate or add to any of its provisions to such extent as
shall be necessary or appropriate to maintain the qualification of any of the
REMICs provided for herein as REMICs under the Code or to avoid or minimize the
risk of the imposition of any tax on the Trust Fund or any of the REMICs
provided for herein pursuant to the Code that would be a claim against the Trust
Fund at any time prior to the final redemption of the Certificates, provided
that the Trustee and the Securities Administrator shall have been provided an
Opinion of Counsel addressed to the Trustee and the Securities Administrator,
which opinion shall be an expense of the party requesting such amendment but in
any case shall not be

                                     -130-

<PAGE>

an expense of the Trustee and the Securities Administrator, to the effect that
such action is necessary or appropriate to maintain such qualification or to
avoid or minimize the risk of the imposition of such a tax.

     (b) This Agreement may also be amended from time to time by the Master
Servicer, the Depositor, the Securities Administrator and the Trustee, and the
Assignment Agreements may also be amended from time to time by the Master
Servicer and the Trustee, with the consent of the Holders of Certificates
evidencing Percentage Interests aggregating not less than 51% of the Trust Fund
or of the applicable Class or Classes, if such amendment affects only such Class
or Classes, for the purpose of adding any provisions to or changing in any
manner or eliminating any of the provisions of this Agreement or of modifying in
any manner the rights of the Certificateholders; provided, however, that no such
amendment shall (i) reduce in any manner the amount of, or delay the timing of,
payments received on Mortgage Loans which are required to be distributed on any
Regular Certificate without the consent of the Holder of such Regular
Certificate, or (ii) reduce the aforesaid percentage of Certificates the Holders
of which are required to consent to any such amendment, without the consent of
the Holders of all Certificates then outstanding. 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
addressed to the Trustee, which opinion shall be an expense of the party
requesting such amendment but in any case shall not be an expense of the
Trustee, to the effect that such amendment is permitted hereunder and will not
cause the imposition of any tax on the Trust Fund, any of the REMICs provided
for herein or the Certificateholders or cause any of the REMICs provided for
herein to fail to qualify as a REMIC at any time that any Certificates are
outstanding.

     (c) Promptly after the execution of any such amendment, the Securities
Administrator shall furnish a copy of such amendment or written notification of
the substance of such amendment to each Certificateholder, with a copy to the
Rating Agencies.

     (d) In the case of an amendment under Subsection 11.02(b) above, it shall
not be necessary for the Certificateholders to approve the particular form of
such an amendment. Rather, it shall be sufficient if the Certificateholders
approve the substance of the amendment. The manner of obtaining such consents
and of evidencing the authorization of the execution thereof by
Certificateholders shall be subject to such reasonable regulations as the
Trustee may prescribe.

     (e) Prior to the execution of any amendment to this Agreement, the Trustee
shall be entitled to receive and rely upon an Opinion of Counsel stating that
the execution of such amendment is authorized or permitted by this Agreement and
will not adversely affect the status of any REMIC created hereunder. The Trustee
and the Securities Administrator may, but shall not be obligated to, enter into
any such amendment which affects the Trustee's or the Securities Administrator's
own respective rights, duties or immunities under this Agreement.

     Section 11.03 Recordation of Agreement. To the extent permitted by
applicable law, this Agreement is subject to recordation in all appropriate
public offices for real property records in all the counties or other comparable
jurisdictions in which any or all of the Mortgaged Properties are situated, and
in any other appropriate public recording office or elsewhere. The

                                     -131-

<PAGE>

Depositor shall effect such recordation, at the expense of the Issuing Entity
upon the request in writing of a Certificateholder, but only if such direction
is accompanied by an Opinion of Counsel (provided at the expense of the
Certificateholder requesting recordation) to the effect that such recordation
would materially and beneficially affect the interests of the Certificateholders
or is required by law.

     Section 11.04 Limitation on Rights of Certificateholders.

     (a) The death or incapacity of any Certificateholder shall not terminate
this Agreement or the Issuing Entity, 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 Issuing Entity, nor
otherwise affect the rights, obligations and liabilities of the parties hereto
or any of them.

     (b) Except as expressly provided in this Agreement, no Certificateholders
shall have any right to vote or in any manner otherwise control the operation
and management of the Issuing Entity, or the obligations of the parties hereto,
nor shall anything herein set forth, or contained in the terms of the
Certificates, be construed so as to establish the Certificateholders from time
to time as partners or members of an association; nor shall any
Certificateholders be under any liability to any third Person by reason of any
action taken by the parties to this Agreement pursuant to any provision hereof.

     (c) No Certificateholder shall have any right by virtue of any provision of
this Agreement to institute any suit, action or proceeding in equity or at law
upon, under or with respect to this Agreement against the Depositor, the
Securities Administrator, the Master Servicer or any successor to any such
parties unless (i) such Certificateholder previously shall have given to the
Trustee a written notice of a continuing default, as herein provided, (ii) the
Holders of Certificates evidencing Percentage Interests aggregating not less
than 51% of the Trust Fund shall have made written request upon the Trustee to
institute such action, suit or proceeding in its own name as Trustee hereunder
and shall have offered to the Trustee such reasonable indemnity as it may
require against the costs and expenses and liabilities to be incurred therein or
thereby, and (iii) the Trustee, for 60 days after its receipt of such notice,
request and offer of indemnity, shall have neglected or refused to institute any
such action, suit or proceeding.

     (d) No one or more Certificateholders shall have any right by virtue of any
provision of this Agreement to affect the rights of any other Certificateholders
or to obtain or seek to obtain priority or preference over any other such
Certificateholder, or to enforce any right under this Agreement, except in the
manner herein provided and for the equal, ratable and common benefit of all
Certificateholders. For the protection and enforcement of the provisions of this
Section 11.04, each and every Certificateholder and the Trustee shall be
entitled to such relief as can be given either at law or in equity.

     Section 11.05 Acts of Certificateholders.

     (a) Any request, demand, authorization, direction, notice, consent, waiver
or other action provided by this Agreement to be given or taken by
Certificateholders may be embodied in and

                                     -132-

<PAGE>

evidenced by one or more instruments of substantially similar tenor signed by
such Certificateholders in person or by an agent duly appointed in writing.
Except as herein otherwise expressly provided, such action shall become
effective when such instrument or instruments are delivered to the Trustee and,
where it is expressly required, to the Depositor. Proof of execution of any such
instrument or of a writing appointing any such agent shall be sufficient for any
purpose of this Agreement and conclusive in favor of the Trustee and the
Depositor, if made in the manner provided in this Section 11.05.

     (b) The fact and date of the execution by any Person of any such instrument
or writing may be proved by the affidavit of a witness of such execution or by a
certificate of a notary public or other officer authorized by law to take
acknowledgments of deeds, certifying that the individual signing such instrument
or writing acknowledged to him the execution thereof. Where such execution is by
a signer acting in a capacity other than his or her individual capacity, such
certificate or affidavit shall also constitute sufficient proof of his or her
authority. The fact and date of the execution of any such instrument or writing,
or the authority of the individual executing the same, may also be proved in any
other manner which the Trustee deems sufficient.

     (c) The ownership of Certificates (notwithstanding any notation of
ownership or other writing on such Certificates, except an endorsement in
accordance with Section 5.02 made on a Regular Certificate presented in
accordance with Section 5.04) shall be proved by the Certificate Register, and
neither the Trustee, the Securities Administrator, the Depositor, the Master
Servicer nor any successor to any such parties shall be affected by any notice
to the contrary.

     (d) Any request, demand, authorization, direction, notice, consent, waiver
or other action of the holder of any Regular Certificate shall bind every future
holder of the same Regular Certificate and the holder of every Regular
Certificate issued upon the registration of transfer or exchange thereof, if
applicable, or in lieu thereof with respect to anything done, omitted or
suffered to be done by the Trustee, the Securities Administrator, the Depositor,
the Master Servicer or any successor to any such party in reliance thereon,
whether or not notation of such action is made upon such Certificates.

     (e) In determining whether the Holders of the requisite percentage of
Certificates evidencing Percentage Interests have given any request, demand,
authorization, direction, notice, consent or waiver hereunder, Certificates
owned by the Trustee, the Securities Administrator, the Depositor, the Master
Servicer or any Affiliate thereof shall be disregarded, except as otherwise
provided in Section 11.02(b) and except that, in determining whether the
Securities Administrator or the Trustee shall be protected in relying upon any
such request, demand, authorization, direction, notice, consent or waiver, only
Certificates which a Responsible Officer of the Trustee knows to be so owned
shall be so disregarded. Certificates which have been pledged in good faith to
the Trustee, the Securities Administrator, the Depositor, the Master Servicer or
any Affiliate thereof may be regarded as outstanding if the pledgor establishes
to the satisfaction of the Securities Administrator the pledgor's right to act
with respect to such Certificates and that the pledgor is not an Affiliate of
the Trustee, the Securities Administrator, the Depositor, or the Master
Servicer, as the case may be.

                                     -133-

<PAGE>

     Section 11.06 Governing Law. THIS AGREEMENT AND THE CERTIFICATES SHALL BE
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REFERENCE
TO ITS CONFLICT OF LAWS RULES AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE
PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

     Section 11.07 Notices. All demands and notices hereunder shall be in
writing and shall be deemed given when delivered at (including delivery by
facsimile) or mailed by registered mail, return receipt requested, postage
prepaid, or by recognized overnight courier, to (i) in the case of the
Depositor, 4 World Financial Center, New York, New York 10281, Attention: Vice
President-Servicing, telecopier number: (212) 449-1000, or to such other address
as may hereafter be furnished to the other parties hereto in writing; (ii) in
the case of the Trustee, at its Corporate Trust Office, or such other address as
may hereafter be furnished to the other parties hereto in writing; (iii) in the
case of the Master Servicer or Securities Administrator, Wells Fargo Bank, N.A.,
P.O. Box 98, Columbia, Maryland 21046, Attention MLMI Series 2006-A3, or, in the
case of overnight deliveries, 9062 Old Annapolis Road, Columbia, Maryland
21045-1951, Attention: MLMI Series 2006-A3, facsimile no.: (410) 715-2380, or
such other address as may hereafter be furnished to the other parties hereto in
writing; (iv) in the case of the Custodian, Wells Fargo Bank, N.A., 1015 10th
Avenue Southeast, MS 0031, Minneapolis, Minnesota 55414, Attention: MLMI Series
2006-A3; or such other address as may hereafter be furnished to the other
parties hereto in writing; or (v) in the case of the Rating Agencies, Moody's
Investors Service, Inc., 99 Church Street, 4th Floor, New York, New York 10007
and Standard & Poor's, a division of The McGraw-Hill Companies, Inc., 55 Water
Street, New York, New York 10041. Any notice delivered to the Depositor, the
Trustee, the Securities Administrator or the Master Servicer under this
Agreement shall be effective only upon receipt. Any notice required or permitted
to be mailed to a Certificateholder, unless otherwise provided herein, shall be
given by first-class mail, postage prepaid, at the address of such
Certificateholder as shown in the Certificate Register. Any notice so mailed
within the time prescribed in this Agreement shall be conclusively presumed to
have been duly given when mailed, whether or not the Certificateholder receives
such notice.

     Section 11.08 Severability of Provisions. If any one or more of the
covenants, agreements, provisions or terms of this Agreement shall be for any
reason whatsoever held invalid, then such covenants, agreements, provisions or
terms shall be deemed severed from the remaining covenants, agreements,
provisions or terms of this Agreement and shall in no way affect the validity or
enforceability of the other provisions of this Agreement or of the Certificates
or the rights of the holders thereof.

     Section 11.09 Successors and Assigns. The provisions of this Agreement
shall be binding upon and inure to the benefit of the respective successors and
assigns of the parties hereto.

     Section 11.10 Article and Section Headings. The article and section
headings herein are for convenience of reference only, and shall not limit or
otherwise affect the meaning hereof.

                                     -134-

<PAGE>

     Section 11.11 Counterparts. This Agreement may be executed in two or more
counterparts each of which when so executed and delivered shall be an original
but all of which together shall constitute one and the same instrument.

     Section 11.12 Notice to Rating Agencies. The article and section headings
herein are for convenience of reference only, and shall not limited or otherwise
affect the meaning hereof. The Trustee shall promptly provide notice to each
Rating Agency with respect to each of the following of which it has actual
knowledge:

     1. Any material change or amendment to this Agreement or the Servicing
Agreements;

     2. The occurrence of any Event of Default that has not been cured;

     3. The resignation or termination of the Trustee, the Trustee or the
Securities Administrator;

     4. The repurchase or substitution of Mortgage Loans;

     5. The final payment to Certificateholders; and

     6. Any change in the location of the Master Servicer Collection Account or
the Distribution Account.

                                   ARTICLE XII
                              REMIC ADMINISTRATION

     Section 12.01 [Reserved].

     Section 12.02 Prohibited Transactions and Activities. Neither the Depositor
nor the Securities Administrator shall sell, dispose of, or substitute for any
of the Mortgage Loans, except in a disposition pursuant to (i) the foreclosure
of a Mortgage Loan, (ii) the bankruptcy of the Trust Fund, (iii) the termination
of each REMIC pursuant to Article X of this Agreement, (iv) a substitution
pursuant to Article II of this Agreement or (v) a repurchase of Mortgage Loans
pursuant to Article II of this Agreement, nor acquire any assets for any REMIC,
nor sell or dispose of any investments in the Distribution Account for gain, nor
accept any contributions to any REMIC after the Closing Date, unless it has
received an Opinion of Counsel (at the expense of the party causing such sale,
disposition, or substitution) that such disposition, acquisition, substitution,
or acceptance will not (a) affect adversely the status of any such REMIC as a
REMIC or of the interests therein other than the Residual Certificate as the
regular interests therein, (b) affect the distribution of interest or principal
on the Certificates, (c) result in the encumbrance of the assets transferred or
assigned to the Trust Fund (except pursuant to the provisions of this Agreement)
or (d) cause any such REMIC to be subject to any tax including a tax on
prohibited transactions or prohibited contributions pursuant to the REMIC
Provisions.

                                     -135-

<PAGE>

     Section 12.03 Indemnification with Respect to Prohibited Transactions or
Loss of REMIC Status. In the event that a REMIC fails to qualify as a REMIC,
loses its status as a REMIC, or incurs federal, state or local taxes as a result
of a prohibited transaction or prohibited contribution under the REMIC
Provisions due to the negligent performance by the Securities Administrator of
its duties and obligations set forth herein, the Securities Administrator shall
indemnify the Certificateholders of the related Residual Certificate against any
and all losses, claims, damages, liabilities or expenses ("Losses") resulting
from such negligence; provided, however, that the Securities Administrator shall
not be liable for any such Losses attributable to the action or inaction of the
Depositor or the Holder of the Residual Certificate, nor for any such Losses
resulting from misinformation provided by any of the foregoing parties on which
the Securities Administrator has relied. Notwithstanding the foregoing, however,
in no event shall the Trustee or the Securities Administrator have any liability
(1) for any action or omission that is taken in accordance with and in
compliance with the express terms of, or which is expressly permitted by the
terms of, this Agreement or the Mortgage Loan Purchase Agreement, (2) for any
Losses other than arising out of malfeasance, willful misconduct or negligent
performance by the Securities Administrator with respect to its duties and
obligations set forth herein, and (3) for any special or consequential damages
to Certificateholders of the related Residual Certificate (in addition to
payment of principal and interest on the Certificates).

     Section 12.04 REO Property.

     (a) Notwithstanding any other provision of this Agreement, the Securities
Administrator shall not, except to the extent provided in this Agreement for
which the Securities Administrator is obligated to perform, knowingly permit any
Servicer to rent, lease, otherwise earn income or take any other action on
behalf of any REMIC with respect to any REO Property which might 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 REMIC of any
"income from non-permitted assets" within the meaning of section 860F(a)(2) of
the Code or any "net income from foreclosure property" which is subject to tax
under the REMIC Provisions unless the Servicer has provided to the Securities
Administrator an Opinion of Counsel concluding that, under the REMIC Provisions,
such action would not adversely affect the status of any REMIC as a REMIC and
any income generated for any REMIC by the REO Property would not result in the
imposition of a tax upon such REMIC.

     (b) The Depositor shall cause each Servicer (to the extent provided in the
applicable Servicing Agreement) to make reasonable efforts to sell any REO
Property for its fair market value. In any event, however, the Depositor shall,
or shall cause the Servicer (to the extent provided in this Agreement) to,
dispose of any REO Property within three years of its acquisition by the Trust
Fund unless the Depositor or such Servicer (on behalf of the Trust Fund) has
received a grant of extension from the Internal Revenue Service to the effect
that, under the REMIC Provisions and any relevant proposed legislation and under
applicable state law, the REMIC may hold REO Property for a longer period
without adversely affecting the REMIC status of such REMIC or causing the
imposition of a Federal or state tax upon such REMIC. If such an extension has
been received, then the Depositor, acting on behalf of the Trustee hereunder,
shall, or shall cause the Servicer to, continue to attempt to sell the REO
Property for its fair market value for such period longer than three years as
such extension permits (the "Extended Period"). If such an extension has not
been received and the Depositor or the

                                     -136-

<PAGE>

Servicer, acting on behalf of the Trust Fund hereunder, is unable to sell the
REO Property within 33 months after its acquisition by the Trust Fund or if such
an extension, has been received and the Depositor or the Servicer is unable to
sell the REO Property within the period ending three months before the close of
the Extended Period, the Depositor shall cause the Servicer, before the end of
the three year period or the Extended Period, as applicable, to (i) purchase
such REO Property at a price equal to the REO Property's fair market value or
(ii) auction the REO Property to the highest bidder (which may be the Servicer)
in an auction reasonably designed to produce a fair price prior to the
expiration of the three-year period or the Extended Period, as the case may be.

                                     -137-

<PAGE>

     IN WITNESS WHEREOF, the Depositor, the Trustee, the Master Servicer and the
Securities Administrator have caused their names to be signed hereto by their
respective officers thereunto duly authorized as of the day and year first above
written.

                                        MERRILL LYNCH MORTGAGE INVESTORS, INC.,
                                        as Depositor

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                                        HSBC BANK USA, NATIONAL ASSOCIATION,
                                        as Trustee

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                                        WELLS FARGO BANK, N.A.,
                                        as Master Servicer

                                        By:
                                            ------------------------------------
                                        Name: Michael Pinzon
                                        Title: Assistant Vice President

                                        WELLS FARGO BANK, N.A.,
                                        as Securities Administrator

                                        By:
                                            ------------------------------------
                                        Name: Michael Pinzon
                                        Title: Assistant Vice President

                                       138

<PAGE>

                                   EXHIBIT A-1

                      FORM OF CLASS [_-A_][M-_] CERTIFICATE

SOLELY FOR FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS 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.

THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN THE
DEPOSITOR, THE TRUSTEE, THE MASTER SERVICER OR THE SECURITIES ADMINISTRATOR
REFERRED TO BELOW OR ANY OF THEIR AFFILIATES. NEITHER THIS CERTIFICATE, THE
REMIC REGULAR INTEREST REPRESENTED HEREBY NOR THE UNDERLYING MORTGAGE LOANS ARE
GUARANTEED OR INSURED BY THE DEPOSITOR, THE TRUSTEE, THE MASTER SERVICER, THE
SECURITIES ADMINISTRATOR OR BY ANY OF THEIR AFFILIATES OR BY ANY GOVERNMENTAL
AGENCY OR INSTRUMENTALITY.

FOLLOWING THE INITIAL ISSUANCE OF THE CERTIFICATES, THE PRINCIPAL BALANCE OF
THIS CERTIFICATE MAY BE DIFFERENT FROM THE ORIGINAL DENOMINATION SHOWN BELOW.
ANYONE ACQUIRING THIS CERTIFICATE MAY ASCERTAIN ITS CURRENT PRINCIPAL BALANCE BY
INQUIRY OF THE SECURITIES ADMINISTRATOR.

[THIS CERTIFICATE IS SUBORDINATE TO THE SENIOR CERTIFICATES AND THE RESIDUAL
CERTIFICATES TO THE EXTENT DESCRIBED IN THE AGREEMENT REFERRED TO HEREIN.]

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.

IF ANY BOOK-ENTRY CERTIFICATE (OR ANY INTEREST THEREIN) IS ACQUIRED OR HELD IN
VIOLATION OF THE PROVISIONS OF SECTION 5.02(B) OF THE POOLING AND SERVICING
AGREEMENT, THEN THE LAST PRECEDING TRANSFEREE THAT IS IN COMPLIANCE WITH SUCH
PROVISIONS SHALL BE RESTORED, TO THE EXTENT PERMITTED BY LAW, TO ALL RIGHTS AND
OBLIGATIONS AS CERTIFICATE OWNER THEREOF RETROACTIVE TO THE DATE OF SUCH
TRANSFER OF SUCH CERTIFICATE. NEITHER THE TRUSTEE NOR THE SECURITIES
ADMINISTRATOR SHALL BE UNDER ANY LIABILITY TO

                                      A-1-1

<PAGE>

ANY PERSON FOR MAKING ANY PAYMENTS DUE ON SUCH CERTIFICATE TO SUCH PRECEDING
TRANSFEREE.

ANY PURPORTED CERTIFICATE OWNER WHOSE ACQUISITION OR HOLDING OF ANY BOOK-ENTRY
CERTIFICATE (OR INTEREST THEREIN) WAS EFFECTED IN VIOLATION OF THE RESTRICTIONS
IN SECTION 5.02(B) OF THE AGREEMENT SHALL INDEMNIFY AND HOLD HARMLESS THE
DEPOSITOR, THE TRUSTEE, THE SECURITIES ADMINISTRATOR, THE MASTER SERVICER AND
THE TRUST FUND FROM AND AGAINST ANY AND ALL LIABILITIES, CLAIMS, COSTS OR
EXPENSES INCURRED BY SUCH PARTIES AS A RESULT OF SUCH ACQUISITION OR HOLDING.

                                      A-1-2

<PAGE>

MLMI Series 2006-A3, Class [_-A_][M-_] Aggregate Certificate Principal Balance
                                       of the Class [_-A_][M-_] Certificates as
                                       of the Issue Date: $__________

Pass-Through Rate: Variable(1)         Initial Certificate Principal Balance of
                                       this Class [_-A_][M-_] Certificate as of
                                       the Issue Date
                                       $__________

Date of Agreement and Cut-off Date:    Master Servicer and Securities
May 1, 2006                            Administrator: Wells Fargo Bank, N.A.

First Distribution Date: June 25, 2006 Trustee: HSBC Bank USA, National
                                       Association

No. __                                 Issue Date: April 28, 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.

                        MORTGAGE PASS-THROUGH CERTIFICATE
                               MLMI SERIES 2006-A3

          evidencing a beneficial ownership interest in a Trust Fund (the "Trust
Fund") consisting primarily of four pools of conventional, one- to four-family,
adjustable-rate, fully amortizing mortgage loans secured by first liens on
residential property (the "Mortgage Loans") formed and sold by

                     MERRILL LYNCH MORTGAGE INVESTORS, INC.

     THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN MERRILL
     LYNCH MORTGAGE INVESTORS, INC., THE MASTER SERVICER, THE SECURITIES
     ADMINISTRATOR, 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.

----------
(1)  As described in the Pooling and Servicing Agreement referenced herein.

                                      A-1-3

<PAGE>

          This certifies that CEDE & CO. is the registered owner of a Percentage
Interest obtained by dividing the denomination of this Certificate by the
aggregate Certificate Principal Balance of the Class [_-A_][M-_] Certificates as
of the Issue Date in that certain beneficial ownership interest evidenced by all
the Class [_-A_][M-_] Certificates in the Trust Fund created pursuant to a
Pooling and Servicing Agreement, dated as specified above (the "Agreement"),
among Merrill Lynch Mortgage Investors, Inc., as depositor (hereinafter called
the "Depositor," which term includes any successor entity under the Agreement),
Wells Fargo Bank, N.A., as master servicer (in such capacity, the "Master
Servicer") and securities administrator (in such capacity, the "Securities
Administrator") 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.

          Interest on this Certificate will accrue during the period specified
in the Agreement on the Certificate Principal Balance hereof at a per annum rate
equal to the variable Pass-Through Rate described 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 (each, a "Distribution Date"), commencing on
the First Distribution Date specified above, to the Person in whose name this
Certificate is registered on 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_][M-_] Certificates on such
Distribution Date pursuant to the Agreement.

          All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by the Securities Administrator by
wire transfer in immediately available funds to the account of the Person
entitled thereto if such Person shall have so notified the Securities
Administrator in writing at least five Business Days prior to the Record Date
immediately prior to such Distribution Date and is the registered owner of Class
[_-A_][M-_] 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 the
presentation and surrender of this Certificate at the office or agency appointed
by the Securities Administrator for that purpose as provided in the Agreement.

          If any Book-Entry Certificate (or any interest therein) is acquired or
held in violation of the provisions of Section 5.02(b) of the Agreement, then
the last preceding Transferee that is in compliance with such provisions shall
be restored, to the extent permitted by law, to all rights and obligations as
Certificate Owner thereof retroactive to the date of such Transfer of such
Certificate. Neither the Trustee nor the Securities Administrator shall be under
any liability to any Person for making any payments due on such Certificate to
such preceding Transferee.

                                      A-1-4

<PAGE>

          Any purported Certificate Owner whose acquisition or holding of any
Book-Entry Certificate (or interest therein) was effected in violation of the
restrictions in Section 5.02(b) of the Agreement shall indemnify and hold
harmless the Depositor, the Trustee, the Securities Administrator, the Master
Servicer and the Trust Fund from and against any and all liabilities, claims,
costs or expenses incurred by such parties as a result of such acquisition or
holding.

          This Certificate is one of a duly authorized issue of Certificates
designated as Mortgage Pass-Through Certificates 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 Master Servicer Collection Account and the
Distribution Account may be made from time to time for purposes other than
distributions to Holders of the Certificates, such purposes including
reimbursement of advances made, or certain expenses incurred, with respect to
the Mortgage Loans.

          The Agreement permits, with certain exceptions and conditions provided
therein, the amendment thereof and the modification of the rights and
obligations of the Depositor, the Securities Administrator, the Master Servicer
and the Trustee and the rights of the Holders of the Certificates under the
Agreement at any time by the Depositor, the Securities Administrator, the Master
Servicer and the Trustee, with the consent of the Holders of Certificates
evidencing Percentage Interests aggregating not less than 51% of the Trust Fund
or of the applicable Class or Classes, if such amendment affects only such Class
or Classes, for the purpose of adding any provisions to or changing in any
manner or eliminating any of the provisions of this Agreement or of modifying in
any manner the rights of the Certificateholders. 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 set
forth therein, 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 and the Certificate Registrar duly executed by, the
Holder hereof or such Holder's attorney duly authorized in writing, and
thereupon one or more new Certificates of the same Class in authorized
denominations 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 set forth therein, Certificates are

                                      A-1-5
<PAGE>

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 Certificate Registrar 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 Securities Administrator, the Master Servicer, the
Trustee and the Certificate Registrar and any agent of the Depositor, the
Securities Administrator, the Master Servicer, the Trustee or the Certificate
Registrar may treat the Person in whose name this Certificate is registered as
the owner hereof for all purposes, and none of the Depositor, the Securities
Administrator, the Master Servicer, the Trustee, the Certificate Registrar nor
any such agent shall be affected by notice to the contrary.

          This certificate shall be governed by and construed in accordance with
the laws of the state of New York.

          The obligations created by the Agreement and the Trust Fund created
thereby shall terminate upon payment (or provision for payment) to the Holders
of the Certificates 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 Distribution Date on which the Certificate Principal Balance of each
Class of Certificates has been reduced to zero, (ii) the final payment (or any
advance with respect thereto) on or other liquidation of the last Mortgage Loan
remaining in the Trust Fund and (iii) the Optional Termination of the trust fund
according to the procedures described in the Agreement, which can occur on any
date after the first Distribution Date on which the aggregate Stated Principal
Balance of the Mortgage Loans is less than 5% of the aggregate Stated 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 the Securities Administrator assumes no responsibility for their
correctness.

          Unless the certificate of authentication hereon has been executed by
the Certificate Registrar, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                      A-1-6

<PAGE>

     IN WITNESS WHEREOF, the Securities Administrator has caused this
Certificate to be duly executed.

                                        WELLS FARGO BANK, N.A.,
                                        as Securities Administrator

                                        By:
                                            ------------------------------------
                                            AUTHORIZED SIGNATORY

                                        Dated: April 28, 2006

              SECURITIES ADMINISTRATOR'S CERTIFICATE AUTHENTICATION

This is one of the Certificates referred to in the within-mentioned Pooling and
Servicing Agreement.

                                        WELLS FARGO BANK, N.A.,
                                        as Authenticating Agent

                                        By:
                                            ------------------------------------
                                            AUTHORIZED SIGNATORY

                                        Dated: April 28, 2006

                                      A-1-7

<PAGE>

                                  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:

<TABLE>
<S>       <C>                              <C>                   <C>
TEN COM - as tenants in common             UNIF GIFT MIN ACT -        CUSTODIAN
TEN ENT - as tenants by the entireties                              (Cust) (Minor)
                                                                 under Uniform Gifts
                                                                    to Minors Act
JT TEN  - as joint tenants with right of                             _____________
          survivorship and not as                                      (State)
          tenants in common
</TABLE>

     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)

the Percentage Interest evidenced by the Mortgage 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 Certificate Registrar 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-1-8

<PAGE>

                            DISTRIBUTION INSTRUCTIONS

     The assignee should include the following for purposes of distribution:

     Distributions shall be made, by wire transfer or otherwise, in immediately
available funds to
_______________________________________________________________________________,
for the account of ____________________________________________________________,
account number___________, or, if mailed by check, to _________________________,
Applicable statements should be mailed to _____________________________________,
_______________________________________________________________________________.

This information is provided by _______________________________________________,
the assignee named above, or __________________________________________________,
as its agent.

                                      A-1-9

<PAGE>

                                   EXHIBIT A-2

              FORM OF CLASS [B-_] [RULE 144A] [REG S] CERTIFICATE

SOLELY FOR FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS 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.

THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN THE
DEPOSITOR, THE TRUSTEE, THE MASTER SERVICER OR THE SECURITIES ADMINISTRATOR
REFERRED TO BELOW OR ANY OF THEIR AFFILIATES. NEITHER THIS CERTIFICATE, THE
REMIC REGULAR INTEREST REPRESENTED HEREBY NOR THE UNDERLYING MORTGAGE LOANS ARE
GUARANTEED OR INSURED BY THE DEPOSITOR, THE TRUSTEE, THE MASTER SERVICER, THE
SECURITIES ADMINISTRATOR OR BY ANY OF THEIR AFFILIATES OR BY ANY GOVERNMENTAL
AGENCY OR INSTRUMENTALITY.

FOLLOWING THE INITIAL ISSUANCE OF THE CERTIFICATES, THE PRINCIPAL BALANCE OF
THIS CERTIFICATE MAY BE DIFFERENT FROM THE ORIGINAL DENOMINATION SHOWN BELOW.
ANYONE ACQUIRING THIS CERTIFICATE MAY ASCERTAIN ITS CURRENT PRINCIPAL BALANCE BY
INQUIRY OF THE SECURITIES ADMINISTRATOR.

THIS CERTIFICATE IS SUBORDINATE TO THE SENIOR CERTIFICATES, THE CLASS M
CERTIFICATES AND THE RESIDUAL CERTIFICATES TO THE EXTENT DESCRIBED IN THE
AGREEMENT REFERRED TO HEREIN.

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.

IF ANY BOOK-ENTRY CERTIFICATE (OR ANY INTEREST THEREIN) IS ACQUIRED OR HELD IN
VIOLATION OF THE PROVISIONS OF SECTION 5.02(B) OF THE POOLING AND SERVICING
AGREEMENT, THEN THE LAST PRECEDING TRANSFEREE THAT IS IN COMPLIANCE WITH SUCH
PROVISIONS SHALL BE RESTORED, TO THE EXTENT PERMITTED BY LAW, TO ALL RIGHTS AND
OBLIGATIONS AS CERTIFICATE OWNER THEREOF RETROACTIVE TO THE DATE OF SUCH
TRANSFER OF SUCH CERTIFICATE. NEITHER THE TRUSTEE NOR THE SECURITIES
ADMINISTRATOR SHALL BE UNDER ANY LIABILITY TO

                                       1

<PAGE>

ANY PERSON FOR MAKING ANY PAYMENTS DUE ON SUCH CERTIFICATE TO SUCH PRECEDING
TRANSFEREE.

ANY PURPORTED CERTIFICATE OWNER WHOSE ACQUISITION OR HOLDING OF ANY BOOK-ENTRY
CERTIFICATE (OR INTEREST THEREIN) WAS EFFECTED IN VIOLATION OF THE RESTRICTIONS
IN SECTION 5.02(B) OF THE AGREEMENT SHALL INDEMNIFY AND HOLD HARMLESS THE
DEPOSITOR, THE TRUSTEE, THE SECURITIES ADMINISTRATOR, THE MASTER SERVICER AND
THE TRUST FUND FROM AND AGAINST ANY AND ALL LIABILITIES, CLAIMS, COSTS OR
EXPENSES INCURRED BY SUCH PARTIES AS A RESULT OF SUCH ACQUISITION OR HOLDING.

NO TRANSFER OF THIS CERTIFICATE SHALL BE REGISTERED UNLESS THE PROSPECTIVE
TRANSFEREE PROVIDES THE SECURITIES ADMINISTRATOR WITH (A) A REPRESENTATION THAT
SUCH TRANSFEREE IS NOT AN EMPLOYEE BENEFIT PLAN OR OTHER ARRANGEMENT SUBJECT TO
TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED
("ERISA"), A PLAN SUBJECT TO SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986,
AS AMENDED (THE "CODE") OR A PLAN SUBJECT TO ANY PROVISION UNDER ANY FEDERAL,
STATE, LOCAL, NON-U.S. OR OTHER LAWS OR REGULATIONS THAT ARE SUBSTANTIVELY
SIMILAR TO THE FOREGOING PROVISIONS OF ERISA OR THE CODE ("SIMILAR LAW")
(COLLECTIVELY, A "PLAN"), AND IS NOT DIRECTLY OR INDIRECTLY ACQUIRING THIS
CERTIFICATE FOR, ON BEHALF OF, OR WITH ANY ASSETS OF ANY SUCH PLAN, (B) IF THIS
CERTIFICATE HAS BEEN THE SUBJECT OF AN ERISA-QUALIFYING UNDERWRITING, A
REPRESENTATION THAT SUCH TRANSFEREE IS AN INSURANCE COMPANY THAT IS ACQUIRING
THIS CERTIFICATE WITH ASSETS OF AN "INSURANCE COMPANY GENERAL ACCOUNT" AS
DEFINED IN SECTION V(E) OF PROHIBITED TRANSACTION CLASS EXEMPTION ("PTCE") 95-60
AND THE ACQUISITION AND HOLDING OF THIS CERTIFICATE ARE COVERED AND EXEMPT UNDER
SECTIONS I AND III OF PTCE 95-60 OR (C) SOLELY IN THE CASE OF A DEFINITIVE
CERTIFICATE, AN OPINION OF COUNSEL SATISFACTORY TO THE SECURITIES ADMINISTRATOR,
AND UPON WHICH THE SECURITIES ADMINISTRATOR SHALL BE ENTITLED TO RELY, TO THE
EFFECT THAT THE ACQUISITION AND HOLDING OF THIS CERTIFICATE BY THE PROSPECTIVE
TRANSFEREE WILL NOT CONSTITUTE OR RESULT IN A NONEXEMPT PROHIBITED TRANSACTION
UNDER ERISA OR THE CODE, OR A VIOLATION OF SIMILAR LAW, AND WILL NOT SUBJECT THE
TRUSTEE, THE SECURITIES ADMINISTRATOR, THE CERTIFICATE REGISTRAR, THE MASTER
SERVICER, ANY SERVICER OR THE DEPOSITOR TO ANY OBLIGATION IN ADDITION TO THOSE
UNDERTAKEN BY SUCH ENTITIES IN THE POOLING AND SERVICING AGREEMENT, WHICH
OPINION OF COUNSEL SHALL NOT BE AN EXPENSE OF THE TRUSTEE, THE SECURITIES
ADMINISTRATOR, THE CERTIFICATE REGISTRAR, THE MASTER SERVICER, ANY SERVICER OR
THE DEPOSITOR. IF THE CERTIFICATE IS NOT

                                       2

<PAGE>

A DEFINITIVE CERTIFICATE, THE TRANSFEREE IS DEEMED TO HAVE MADE THE
REPRESENTATION IN (A) OR (B) ABOVE.

THIS CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (THE "1933 ACT"), OR THE SECURITIES LAWS OF ANY STATE
AND MAY NOT BE RESOLD OR TRANSFERRED [WITHIN THE UNITED STATES (AS DEFINED IN
RULES 901 THROUGH 905 OF THE 1933 ACT ("REGULATION S")) OR TO, OR FOR THE
ACCOUNT OR BENEFIT OF, A U.S. PERSON (AS DEFINED IN REGULATION S),] 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 5.02 OF THE AGREEMENT.

                                       3

<PAGE>

<TABLE>
<S>                                     <C>
MLMI Series 2006-A3, Class [B-_]        Aggregate Certificate Principal Balance
[RULE 144A] [REGULATIONS]               of Class [B-_] Certificates as of the
                                        Issue Date: $_______________

Pass Through Rate: Variable(1)          Initial Class Certificate Principal
                                        Balance of this Class [B-_] Certificate
                                        as of the Issue Date: $_______________

Date of Agreement and Cut-off Date:     Master Servicer and Securities Administrator:
May 1, 2006                             Wells Fargo Bank, N.A.

First Distribution Date: May 25, 2006   Trustee: HSBC Bank USA, National Association

No. __                                  Issue Date: April 28, 2006

                                        CUSIP: ___________
</TABLE>

     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.

                        MORTGAGE PASS-THROUGH CERTIFICATE
                               MLMI SERIES 2006-A3

evidencing a beneficial ownership interest in a Trust Fund (the "Trust Fund")
consisting primarily of four pools of conventional, one- to four-family,
adjustable-rate, fully amortizing mortgage loans secured by first liens on
residential property (the "Mortgage Loans") formed and sold by

                     MERRILL LYNCH MORTGAGE INVESTORS, INC.

     THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN MERRILL
     LYNCH MORTGAGE INVESTORS, INC., THE MASTER SERVICER, THE SECURITIES
     ADMINISTRATOR, 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.

----------
(1)  As described in the Pooling and Servicing Agreement referenced herein.

                                       4

<PAGE>

          This certifies that CEDE & CO. is the registered owner of a Percentage
Interest (obtained by dividing the denomination of this Certificate by the
aggregate Certificate Principal Balance of the Class [B-_] Certificates as of
the Issue Date) in that certain beneficial ownership interest evidenced by all
the Class [B-_] Certificates in the Trust Fund created pursuant to a Pooling and
Servicing Agreement, dated as specified above (the "Agreement"), among Merrill
Lynch Mortgage Investors, Inc., as depositor (hereinafter called the
"Depositor," which term includes any successor entity under the Agreement),
Wells Fargo Bank, N.A., as master servicer (in such capacity, the "Master
Servicer") and securities administrator (in such capacity, the "Securities
Administrator") 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.

          Interest on this Certificate will accrue during the period specified
in the Agreement on the Certificate Principal Balance hereof at a per annum rate
equal to the variable Pass-Through Rate described 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 (each, a "Distribution Date"), commencing on
the First Distribution Date specified above, to the Person in whose name this
Certificate is registered on 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 [B-_] Certificates on such
Distribution Date pursuant to the Agreement.

          All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by the Securities Administrator by
wire transfer in immediately available funds to the account of the Person
entitled thereto if such Person shall have so notified the Securities
Administrator in writing at least five Business Days prior to the Record Date
immediately prior to such Distribution Date and is the registered owner of Class
[B-_] 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 the presentation and
surrender of this Certificate at the office or agency appointed by the
Securities Administrator for that purpose as provided in the Agreement.

          If any Book-Entry Certificate (or any interest therein) is acquired or
held in violation of the provisions of Section 5.02(b) of the Agreement, then
the last preceding Transferee that is in compliance with such provisions shall
be restored, to the extent permitted by law, to all rights and obligations as
Certificate Owner thereof retroactive to the date of such Transfer of such
Certificate. Neither the Trustee nor the Securities Administrator shall be under
any liability to any Person for making any payments due on such Certificate to
such preceding Transferee.

                                       5

<PAGE>

          Any purported Certificate Owner whose acquisition or holding of any
Book~Entry Certificate (or interest therein) was effected in violation of the
restrictions in Section 5.02(b) of the Agreement shall indemnify and hold
harmless the Depositor, the Trustee, the Securities Administrator, the Master
Servicer and the Trust Fund from and against any and all liabilities, claims,
costs or expenses incurred by such parties as a result of such acquisition or
holding.

          This Certificate is one of a duly authorized issue of Certificates
designated as Mortgage Pass-Through Certificates 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 Master Servicer Collection Account and the
Distribution Account may be made from time to time for purposes other than
distributions to Holders of the Certificates, such purposes including
reimbursement of advances made, or certain expenses incurred, with respect to
the Mortgage Loans.

          The Agreement permits, with certain exceptions and conditions provided
therein, the amendment thereof and the modification of the rights and
obligations of the Depositor, the Securities Administrator, the Master Servicer
and the Trustee and the rights of the Holders of the Certificates under the
Agreement at any time by the Depositor, the Securities Administrator, the Master
Servicer and the Trustee, with the consent of the Holders of Certificates
evidencing Percentage Interests aggregating not less than 51% of the Trust Fund
or of the applicable Class or Classes, if such amendment affects only such Class
or Classes, for the purpose of adding any provisions to or changing in any
manner or eliminating any of the provisions of this Agreement or of modifying in
any manner the rights of the Certificateholders. 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 set
forth therein, 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 and the Certificate Registrar duly executed by, the
Holder hereof or such Holder's attorney duly authorized in writing, and
thereupon one or more new Certificates of the same Class in authorized
denominations 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

                                       6

<PAGE>

provided in the Agreement and subject to certain limitations set forth therein,
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 any applicable state securities laws or
is exempt from the registration requirements under the 1933 Act and such state
securities laws. .In the event that a transfer is to be made in reliance upon an
exemption from the 1933 Act and such laws, the Certificateholder desiring to
effect such transfer and such Certificateholder's prospective transferee shall
each certify to the Securities Administrator in writing the facts surrounding
the transfer in a Transferor Representation Letter as described in the Agreement
and (i) deliver to the Securities Administrator an Investor Representation
Letter or Rule 144A Letter as described in the Agreement or (ii) have delivered
to the Securities Administrator an Opinion of Counsel that such transfer may be
made pursuant to an exemption from the Securities Act, which Opinion of Counsel
shall not be an expense of the Depositor or the Securities Administrator. Any
Certificateholder desiring to effect a transfer of this Certificate shall
indemnify the Securities Administrator and the Depositor against any liability
that may result if the transfer is not so exempt or is not made in accordance
with such federal and state laws.

          No service charge will be made for any such registration of transfer
or exchange of Certificates, but the Certificate Registrar 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 Securities Administrator, the Master Servicer, the
Trustee and the Certificate Registrar and any agent of the Depositor, the
Securities Administrator, the Master Servicer, the Trustee or the Certificate
Registrar may treat the Person in whose name this Certificate is registered as
the owner hereof for all purposes, and none of the Depositor, the Securities
Administrator, the Master Servicer, the Trustee, the Certificate Registrar nor
any such agent shall be affected by notice to the contrary.

          This certificate shall be governed by and construed in accordance with
the laws of the state of New York.

          The obligations created by the Agreement and the Trust Fund created
thereby shall terminate upon payment (or provision for payment) to the Holders
of the Certificates 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 Distribution Date on which the Certificate Principal Balance of each
Class of Certificates has been reduced to zero, (ii) the final payment (or any
advance with respect thereto) on or other liquidation of the last Mortgage Loan
remaining in the Trust Fund and (iii) the Optional Termination of the trust fund
according to the procedures described in the Agreement, which can occur on any
date after the first Distribution Date on which the aggregate Stated Principal
Balance of the Mortgage Loans is less than 5% of the aggregate Stated Principal
Balance of the Mortgage Loans as of the Cut-off Date.

                                       7

<PAGE>

          The recitals contained herein shall be taken as statements of the
Depositor and the Securities Administrator assumes no responsibility for their
correctness.

          Unless the certificate of authentication hereon has been executed by
the Certificate Registrar, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                       8

<PAGE>

     IN WITNESS WHEREOF, the Securities Administrator has caused this
Certificate to be duly executed.

                                        WELLS FARGO BANK, N.A.,
                                        as Securities Administrator

                                        By:
                                            ------------------------------------
                                            AUTHORIZED SIGNATORY

                                        Dated: April 28, 2006

              SECURITIES ADMINISTRATOR'S CERTIFICATE AUTHENTICATION

This is one of the Certificates referred to in the within-mentioned Pooling and
Servicing Agreement.

                                        WELLS FARGO BANK, N.A.,
                                        as Authenticating Agent

                                        By:
                                            ------------------------------------
                                            AUTHORIZED SIGNATORY

                                        Dated: April 28, 2006

                                       9

<PAGE>

                                  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:

<TABLE>
<S>       <C>                              <C>                   <C>
TEN COM - as tenants in common             UNIF GIFT MIN ACT -        CUSTODIAN
TEN ENT - as tenants by the entireties                             (Cust) (Minor)
                                                                 under Uniform Gifts
                                                                    to Minors Act
JT TEN -  as joint tenants with right of                            ______________
          survivorship and not as                                      (State)
          tenants in common
</TABLE>

     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)

the Percentage Interest evidenced by the Mortgage 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 Certificate Registrar 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

                                       10

<PAGE>

                            DISTRIBUTION INSTRUCTIONS

     The assignee should include the following for purposes of distribution:

     Distributions shall be made, by wire transfer or otherwise, in immediately
available funds to __________________________________________________, for the
account of ____________________________________________________________, account
number___________, or, if mailed by check, to _________________________,
Applicable statements should be mailed to _____________________________________,
_______________________________________________________________________________.

This information is provided by _______________________________________________,
the assignee named above, or __________________________________________________,
as its agent.

                                       11

<PAGE>

                                   EXHIBIT A-3

                          FORM OF CLASS A-R CERTIFICATE

SOLELY FOR FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS A "RESIDUAL
INTEREST" IN ONE OR MORE "REAL ESTATE MORTGAGE INVESTMENT CONDUITS", AS THOSE
TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL
REVENUE CODE OF 1986, AS AMENDED (THE "CODE").

THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN THE
DEPOSITOR, THE TRUSTEE, THE MASTER SERVICER OR THE SECURITIES ADMINISTRATOR
REFERRED TO BELOW OR ANY OF THEIR AFFILIATES. NEITHER THIS CERTIFICATE, THE
REMIC RESIDUAL INTERESTS REPRESENTED HEREBY NOR THE UNDERLYING MORTGAGE LOANS
ARE GUARANTEED OR INSURED BY THE DEPOSITOR, THE TRUSTEE, THE MASTER SERVICER,
THE SECURITIES ADMINISTRATOR OR BY ANY OF THEIR AFFILIATES OR BY ANY
GOVERNMENTAL AGENCY OR INSTRUMENTALITY.

NO TRANSFER OF THIS CERTIFICATE SHALL BE REGISTERED UNLESS THE PROSPECTIVE
TRANSFEREE PROVIDES THE SECURITIES ADMINISTRATOR AND THE DEPOSITOR WITH A
REPRESENTATION THAT SUCH TRANSFEREE IS NOT AN EMPLOYEE BENEFIT PLAN SUBJECT TO
TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED
("ERISA"), A PLAN SUBJECT TO SECTION 4975 OF THE CODE OR A PLAN SUBJECT TO ANY
FEDERAL, STATE, LOCAL, NON-U.S. OR OTHER LAWS OR REGULATIONS THAT ARE
SUBSTANTIVELY SIMILAR TO THE FOREGOING PROVISIONS OF ERISA OR THE CODE, AND IS
NOT DIRECTLY OR INDIRECTLY ACQUIRING THIS CERTIFICATE FOR, ON BEHALF OF, OR WITH
ANY ASSETS OF ANY SUCH PLAN. ANY RESALE, TRANSFER OR OTHER DISPOSITION OF THIS
CERTIFICATE MAY BE MADE ONLY IN ACCORDANCE WITH THE PROVISIONS OF SECTION 5.02
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 5.02 OF THE AGREEMENT.

ANY RESALE, TRANSFER OR OTHER DISPOSITION OF THIS CERTIFICATE MAY BE MADE ONLY
IF THE PROPOSED TRANSFEREE PROVIDES 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

                                       1

<PAGE>

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. 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 5.02 OF THE AGREEMENT REFERRED TO HEREIN. ANY PERSON
THAT IS A DISQUALIFIED ORGANIZATION IS PROHIBITED FROM ACQUIRING BENEFICIAL
OWNERSHIP OF THIS CERTIFICATE.

                                        2

<PAGE>

<TABLE>
<S>                                     <C>
MLMI Series 2006-A3, Class A-R          Aggregate Certificate Principal Balance
                                        of the Class A-R Certificates as of the
                                        Issue Date: $100

Pass-Through Rate: Variable(1)          Master Servicer and Securities
                                        Administrator: Wells Fargo Bank, N.A.

Date of Agreement and Cut-off Date:     Trustee: HSBC Bank USA, National Association
May 1, 2006

First Distribution Date: May 25, 2006   Issue Date: April 28, 2006

No. __                                  CUSIP: ___________
</TABLE>

                        MORTGAGE PASS-THROUGH CERTIFICATE
                               MLMI SERIES 2006-A3

evidencing a beneficial ownership interest in a Trust Fund (the "Trust Fund")
consisting primarily of four pools of conventional, one- to four-family,
adjustable-rate, fully amortizing mortgage loans secured by first liens on
residential property (the "Mortgage Loans") formed and sold by

                     MERRILL LYNCH MORTGAGE INVESTORS, INC.

     THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN MERRILL
     LYNCH MORTGAGE INVESTORS, INC., THE MASTER SERVICER, THE SECURITIES
     ADMINISTRATOR, 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 a registered
owner of a ___% Percentage Interest specified above in that certain beneficial
ownership interest evidenced by all the Class A-R Certificates in the Trust Fund
created pursuant to a Pooling and Servicing Agreement, dated as specified above
(the "Agreement"), among Merrill Lynch Mortgage Investors, Inc., as depositor
(hereinafter called the "Depositor," which term includes any successor entity
under the Agreement), Wells Fargo Bank, N.A., as master servicer (in such
capacity, the "Master Servicer") and securities administrator (in such capacity,
the "Securities Administrator") 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.

----------
(1)  As described in the Pooling and Servicing Agreement referenced herein.

                                        3
<PAGE>

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 (each, a "Distribution Date"), commencing on
the First Distribution Date specified above, to the Person in whose name this
Certificate is registered on 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-R Certificates on such Distribution
Date pursuant to the Agreement.

          Interest on this Certificate will accrue during the period specified
in the Agreement on the Certificate Principal Balance hereof at a at a per annum
rate equal to the variable Pass-Through Rate described in the Agreement. In
addition, any distribution of the proceeds of any remaining assets of the Trust
will be made only upon presentment and surrender of this Certificate at the
Corporate Trust Office.

          This Certificate is one of a duly authorized issue of Certificates
designated as Mortgage Pass-Through Certificates of the Series specified on the
face hereof (herein called the "Certificates") and representing a Percentage
Interest in the Class of Certificates specified on the face hereof.

          The Certificates are limited in right of payment to certain
collections and recoveries respecting the related Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Master Servicer Collection Account and the
Distribution Account may be made from time to time for purposes other than
distributions to Holders of the Certificates, such purposes including
reimbursement of advances made, or certain expenses incurred, with respect to
the related Mortgage Loans.

          The Agreement permits, with certain exceptions and conditions provided
therein, the amendment thereof and the modification of the rights and
obligations of the Depositor, the Securities Administrator, the Master Servicer
and the Trustee and the rights of the Holders of the Certificates under the
Agreement at any time by the Depositor, the Securities Administrator, the Master
Servicer and the Trustee, with the consent of the Holders of Certificates
evidencing Percentage Interests aggregating not less than 66 2/3% of the Trust
Fund or of the applicable Class or Classes, if such amendment affects only such
Class or Classes, for the purpose of adding any provisions to or changing in any
manner or eliminating any of the provisions of this Agreement or of modifying in
any manner the rights of the Certificateholders. 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 set
forth therein, 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

                                       4
<PAGE>

assignment in the form below or other written instrument of transfer in form
satisfactory to the Securities Administrator and the Certificate Registrar duly
executed by, the Holder hereof or such Holder's attorney duly authorized in
writing, and thereupon one or more new Certificates of the same Class in
authorized denominations 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 set forth therein, 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 any applicable state securities laws or
is exempt from the registration requirements under the 1933 Act and such state
securities laws. .In the event that a transfer is to be made in reliance upon an
exemption from the 1933 Act and such laws, the Certificateholder desiring to
effect such transfer and such Certificateholder's prospective transferee shall
each certify to the Securities Administrator in writing the facts surrounding
the transfer in a Transferor Certificate as described in the Agreement and (i)
deliver to the Securities Administrator an Investment Letter or Rule 144A Letter
as described in the Agreement or (ii) have delivered to the Securities
Administrator an Opinion of Counsel that such transfer may be made pursuant to
an exemption from the Securities Act, which Opinion of Counsel shall not be an
expense of the Depositor or the Securities Administrator. Any Certificateholder
desiring to effect a transfer of this Certificate shall indemnify the Securities
Administrator and the Depositor against any liability that may result if the
transfer is not so exempt or is not made in accordance with such federal and
state laws.

          Each Person holding or acquiring any Ownership Interest in a Class A-R
Certificate shall be a Permitted Transferee, as described in the Agreement, and
shall promptly notify the Securities Administrator of any change or impending
change in its status as a Permitted Transferee.

          Prior to registration of any transfer, sale or other disposition of
this Certificate, the proposed transferee shall provide to the Securities
Administrator the affidavits described in Section 5.02(c) of the Agreement. Each
Person holding or acquiring any Ownership Interest in a Class A-R Certificate
shall agree to comply with the requirements of Section 5.02(c) of the Agreement
in connection with any transfer thereof. Any attempted or purported transfer of
any Ownership Interest in a Class A-R Certificate in violation of the provisions
of Section 5.02(c) of the Agreement shall be absolutely null and void and shall
vest no rights in the purported transferee. If any purported transferee shall
become a Holder of a Class A-R Certificate in violation of the provisions of
Section 5.02(c) of the Agreement, then the last preceding Permitted Transferee
shall be restored to all rights as Holder thereof retroactive to the date of
registration of Transfer of such Class A-R Certificate, as described more fully
in the Agreement.

          The Holder of this Certificate, by its acceptance hereof, shall be
deemed to have consented to the provisions of Section 5.02 of the Agreement and
to any amendment of the Agreement deemed necessary by counsel of the Depositor
to ensure that the transfer of this

                                       5
<PAGE>

Certificate to any Person other than a Permitted Transferee or any other Person
will not cause the REMIC to cease to qualify as a REMIC or cause the imposition
of a tax upon the REMIC.

          No service charge will be made for any such registration of transfer
or exchange of Certificates, but the Certificate Registrar 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 Securities Administrator, the Master Servicer, the
Trustee and the Certificate Registrar and any agent of the Depositor, the
Securities Administrator, the Master Servicer, the Trustee or the Certificate
Registrar may treat the Person in whose name this Certificate is registered as
the owner hereof for all purposes, and none of the Depositor, the Securities
Administrator, the Master Servicer, the Trustee, the Certificate Registrar nor
any such agent shall be affected by notice to the contrary.

          This certificate shall be governed by and construed in accordance with
the laws of the state of New York.

          The obligations created by the Agreement and the Trust Fund created
thereby shall terminate upon payment (or provision for payment) to the Holders
of the Certificates 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 Distribution Date on which the Certificate Principal Balance of each
Class of Certificates has been reduced to zero, (ii) the final payment (or any
advance with respect thereto) on or other liquidation of the last Mortgage Loan
remaining in the Trust Fund and (iii) the Optional Termination of the trust fund
according to the procedures described in the Agreement, which can occur on any
date after the first Distribution Date on which the aggregate Stated Principal
Balance of the Mortgage Loans is less than 5% of the aggregate Stated 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 the Securities Administrator assumes no responsibility for their
correctness.

          Unless the certificate of authentication hereon has been executed by
the Certificate Registrar, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                       6
<PAGE>

IN WITNESS WHEREOF, the Securities Administrator has caused this Certificate to
be duly executed.

                                        WELLS FARGO BANK, N.A.,
                                        as Securities Administrator

                                        By:
                                            ------------------------------------
                                            AUTHORIZED SIGNATORY

                                        Dated: April 28, 2006

              SECURITIES ADMINISTRATOR'S CERTIFICATE AUTHENTICATION

This is one of the Certificates referred to in the within-mentioned Pooling and
Servicing Agreement.

                                        WELLS FARGO BANK, N.A.,
                                        as Authenticating Agent

                                        By:
                                            ------------------------------------
                                            AUTHORIZED SIGNATORY

                                        Dated: April 28, 2006

                                       7
<PAGE>

                                  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:

<TABLE>
<S>         <C>                              <C>                   <C>
TEN COM -   as tenants in common             UNIF GIFT MIN ACT -         CUSTODIAN

TEN ENT -   as tenants by the entireties                               (Cust) (Minor)
                                                                   under Uniform Gifts to
                                                                         Minors Act

JT TEN -    as joint tenants with right of                             ______________
            survivorship and not as                                       (State)
            tenants in common
</TABLE>

     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)

the Percentage Interest evidenced by the Mortgage 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 Certificate Registrar 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

                                       8
<PAGE>

                            DISTRIBUTION INSTRUCTIONS

     The assignee should include the following for purposes of distribution:

     Distributions shall be made, by wire transfer or otherwise, in immediately
available funds to ________________________________________, for the account of
______________________________________________________________________, account
number __________, or, if mailed by check, to _________________________________,
Applicable statements should be mailed to _____________________________________,
_______________________________________________________________________________.

This information is provided by _______________________________________________,
the assignee named above, or __________________________________________________,
as its agent. __________________________________________________________________

                                       9
<PAGE>

                                    EXHIBIT B
                             MORTGAGE LOAN SCHEDULE
                             [Provided Upon Request]

                                       B-1

<PAGE>

                                    EXHIBIT C
                                   [RESERVED]

                                       C-1

<PAGE>

                                    EXHIBIT D

                        REQUEST FOR RELEASE OF DOCUMENTS

To: Wells Fargo Bank, N.A.
    1015 10th Avenue S.E.
    Minneapolis Minnesota 55414
    Attn: ______________________

     Re: Custodial Agreement dated as of May 28, 2006 among HSBC Bank USA,
         National Association, Merrill Lynch Mortgage Investors, Inc. and Wells
         Fargo Bank, N.A.

     In connection with the administration of the Mortgage Loans held by you as
Custodian for the Owner pursuant to the above-captioned Custodial Agreement, we
request the release, and hereby acknowledge receipt, of the Custodian's Mortgage
File for the Mortgage Loan described below, for the reason indicated.

Mortgage Loan Number: ______________________________

Mortgagor Name, Address & Zip Code: ________________

Reason for Requesting Documents (check one):

___ 1. Mortgage Paid in full

___ 2. Foreclosure

___ 3. Substitution

___ 4. Other Liquidation (Repurchases, etc.)

___ 5. Nonliquidation                   Reason:_______________________

                                        By:
                                            ------------------------------------
                                            (authorized signer)
                                        Issuer:
                                                --------------------------------
                                        Address:
                                                 -------------------------------

                                                 -------------------------------
                                        Date:
                                              ----------------------------------

                                       D-1

<PAGE>

Custodian

Wells Fargo Bank, N.A.

Please acknowledge the execution of the above request by your signature and date
below:

Please acknowledge the execution of the above request by your signature and date
below:

-------------------------------------   -------------------
Signature                               Date

Documents returned to Custodian:

-------------------------------------   -------------------
Custodian                               Date

                                       D-2

<PAGE>

                                   EXHIBIT E-1
                    FORM OF TRANSFEREE'S LETTER AND AFFIDAVIT

                                     [DATE]

Wells Fargo Bank, N.A.
9062 Old Annapolis Road
Columbia, Maryland 21045
Attention: Corporate Trust Services - Merrill Lynch Mortgage Investors Trust,
           Series 2006-A3

Ladies and Gentlemen:

We propose to purchase Merrill Lynch Mortgage Investors Trust, Series 2006-A3
Mortgage Pass-Through Certificates, Class A-R, described in the Prospectus
Supplement, dated May [26], 2006, and the Prospectus, dated March 31, 2006.
Capitalized terms used but not defined herein shall have the meanings assigned
to them in the Pooling and Servicing Agreement dated May 1, 2006 relating to
this issuance of the Merrill Lynch Mortgage Investors Trust, Series 2006-A3
Mortgage Pass-Through Certificates (the "Pooling and servicing Agreement").

1. We certify that (a) we are not a disqualified organization and (b) we are not
purchasing such Class A-R Certificate on behalf of a disqualified organization;
for this purpose the term "disqualified organization" means the United States,
any state or political subdivision thereof, any foreign government, any
international organization, any agency or instrumentality of any of the
foregoing (except any entity treated as other than an instrumentality of the
foregoing for purposes of Section 168(h)(2)(D) of the Internal Revenue Code of
1986, as amended (the "Code")), any organization (other than a cooperative
described in Section 521 of the Code) that is exempt from taxation under the
Code (unless such organization is subject to tax on excess inclusions) and any
organization that is described in Section 1381(a)(2)(C) of the Code. We
understand that any breach by us of this certification may cause us to be liable
for an excise tax imposed upon transfers to disqualified organizations.

2. We certify that (a) we have historically paid our debts as they became due,
(b) we intend, and believe that we will be able, to continue to pay our debts as
they become due in the future, (c) we understand that, as beneficial owner of
the Class A-R Certificate, we may incur tax liabilities in excess of any cash
flows generated by the Class A-R Certificate, and (d) we intend to pay any taxes
associated with holding the Class A-R Certificate as they become due and (e) we
will not cause income from the Class A-R Certificate to be attributable to a
foreign permanent establishment or fixed base (within the meaning of an
applicable income tax treaty) of ours or another U.S. taxpayer.

                                      E-1-1

<PAGE>

3. We acknowledge that we will be the beneficial owner of the Class A-R
Certificate and:(1)

     ____ The Class A-R Certificate will be registered in our name.

     ____ The Class A-R Certificate will be held in the name of our nominee,
          _________________, which is not a disqualified organization.

4. We certify that we are not an employee benefit plan subject to Title I of the
Employee Retirement Income Security Act of 1974, as amended ("ERISA"), a plan
subject to Section 4975 of the Code or a plan subject to federal, state, local,
non-U.S. or other law substantively similar to the foregoing provisions of ERISA
or the Code (each, a "Plan"), and are not directly or indirectly acquiring the
Class A-R Certificate on behalf of or with any assets of a Plan.

5. We certify that (i) we are a U.S. person or (ii) we will hold the Class A-R
Certificate in connection with the conduct of a trade or business within the
United States and have furnished the transferor and the Securities Administrator
with a duly completed and effective Internal Revenue Service Form W-8ECI or
successor form at the time and in the manner required by the Code; for this
purpose the term "U.S. person" means a citizen or resident of the United States,
a corporation, or partnership (unless, in the case of a partnership, Treasury
regulations are adopted that provide otherwise) created or organized in or under
the laws of the United States, any State thereof or the District of Columbia,
including an entity treated as a corporation or partnership for federal income
tax purposes, an estate whose income is subject to United States federal income
tax regardless of the source of its income, or a trust if a court within the
United States is able to exercise primary supervision over the administration of
the trust and one or more such U.S. persons have the authority to control all
substantial decisions of the trust (or, to the extent provided in applicable
Treasury regulations, certain trusts in existence on August 20, 1996 which are
eligible to elect to be treated as U.S. Persons. We agree that any breach by us
of this certification shall render the transfer of any interest in the Class A-R
Certificate to us absolutely null and void and shall cause no rights in the
Class A-R Certificate to vest in us.

6. We agree that in the event that at some future time we wish to transfer any
interest in the Class A-R Certificate, we will transfer such interest in the
Class A-R Certificate only (a) to a transferee that (i) is not a disqualified
organization and is not purchasing such interest in the Class A-R Certificate on
behalf of a disqualified organization, (ii) is a U.S. person or will hold the
Class A-R Certificate in connection with the conduct of a trade or business
within the United States and will furnish us and the Securities Administrator
with a duly completed and effective Internal Revenue Service Form W-8ECI or
successor form at the time and in the manner required by the Code and (iii) has
delivered to the Securities Administrator a letter in the form of this letter
(including the affidavit appended hereto) and, we will provide the Securities
Administrator a written statement substantially in the form of Exhibit E-2 to
the Pooling and Servicing Agreement.

7. We hereby designate _______________________ as our fiduciary to act as the
tax matters person for each of the REMICs provided for in the Pooling and
Servicing Agreement in which the Class A-R Certificate represents the residual
interest.

----------
(1)  Check appropriate box and if necessary fill in the name of the Transferee's
     nominee.

                                      E-1-2

<PAGE>

                                        Very truly yours,

                                        [Purchaser]

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

Accepted as of __________ __, 200__

MERRILL LYNCH MORTGAGE INVESTORS,
INC.

By:
    ---------------------------------
Name:
      -------------------------------
Title:
       ------------------------------

                                      E-1-3

<PAGE>

                                   APPENDIX A

                                        Affidavit pursuant to (i) Section
                                        860E(e)(4) of the Internal Revenue Code
                                        of 1986, as amended, and (ii) certain
                                        provisions of the Pooling and Servicing
                                        Agreement

Under penalties of perjury, the undersigned declares that the following is true:

          1.   He or she is an officer of _________________________ (the
               "Investor"),

          2.   the Investor's Employer Identification number is __________,

          3.   the Investor is not a "disqualified organization" (as defined
               below), has no plan or intention of becoming a disqualified
               organization, and is not acquiring any of its interest in the
               Merrill Lynch Mortgage Investors Trust, Series 2006-A3 Mortgage
               Pass-Through Certificates, Class A-R Certificate on behalf of a
               disqualified organization or any other entity,

          4.   unless Merrill Lynch Mortgage Investors, Inc. ("MLMI") has
               consented to the transfer to the Investor, the Investor is a
               "U.S. person" (as defined below),

          5.   that no purpose of the transfer is to avoid or impede the
               assessment or collection of tax,

          6.   the Investor has historically paid its debts as they became due,

          7.   the Investor intends, and believes that it will be able, to
               continue to pay its debts as they become due in the future,

          8.   the Investor understands that, as beneficial owner of the Class
               A-R Certificate, it may incur tax liabilities in excess of any
               cash flows generated by the Class A-R Certificate,

          9.   the Investor intends to pay any taxes associated with holding the
               Class A-R Certificate as they become due,

          10.  the Investor consents to any amendment of the Pooling and
               Servicing Agreement that shall be deemed necessary by MLMI (upon
               advice of counsel) to constitute a reasonable arrangement to
               ensure that the Class A-R Certificate will not be owned directly
               or indirectly by a disqualified organization, and

          11.  IF BRACKETED, THE FOLLOWING CERTIFICATIONS ARE INAPPLICABLE [the
               transfer is not a direct or indirect transfer of the Class A-R
               Certificate to a foreign permanent establishment or fixed base
               (within the meaning of an applicable income tax treaty) of the
               Investor, and as to each of the residual interests represented by
               the Class A-R Certificate, the present value of the anticipated
               tax liabilities associated with holding such residual interest
               does not exceed the sum of:

                                      E-1-4

<PAGE>

               A.   the present value of any consideration given to the Investor
                    to acquire such residual interest;

               B.   the present value of the expected future distributions on
                    such residual interest; and

               C.   the present value of the anticipated tax savings associated
                    with holding such residual interest as the related REMIC
                    generates losses.

     For purposes of this declaration, (i) the Investor is assumed to pay tax at
     a rate equal to the highest rate of tax specified in Section 11(b)(1) of
     the Code, but the tax rate specified in Section 55(b)(1)(B) of the Code may
     be used in lieu of the highest rate specified in Section 11(b)(1) of the
     Code if the Investor has been subject to the alternative minimum tax under
     Section 55 of the Code in the preceding two years and will compute its
     taxable income in the current taxable year using the alternative minimum
     tax rate, and (ii) present values are computed using a discount rate equal
     to the Federal short-term rate prescribed by Section 1274(d) of the Code
     for the month of the transfer and the compounding period used by the
     Investor;]

[(11)(A)  at the time of the transfer, and at the close of each of the
          Investor's two fiscal years preceding the Investor's fiscal year of
          transfer, the Investor's gross assets for financial reporting purposes
          exceed $100 million and its net assets for financial reporting
          purposes exceed $10 million; and

     (B)  the Investor is an eligible corporation as defined in Treasury
          regulations Section 1.860E-1(c)(6)(i) and has agreed in writing that
          any subsequent transfer of the Class A-R Certificate will be to
          another eligible corporation in a transaction that satisfies Treasury
          regulation Sections 1.860E-1(c)(4)(i), 1.860E-1(c)(4)(ii),
          1.860E-1(c)(4)(iii) and 1.860E-1(c)(5) and such transfer will not be a
          direct or indirect transfer to a foreign permanent establishment
          (within the meaning of an applicable income tax treaty) of a domestic
          corporation.

For purposes of this declaration, the gross and net assets of the Investor do
not include any obligation of any related person as defined in Treasury
regulation Section 1.860E-1(c)(6)(ii) or any other asset if a principal purpose
for holding or acquiring the other asset is to permit the Investor to make this
declaration or to satisfy the requirements of Treasury regulation Section
1.860E-1(c)(5)(i).]

(12) The Investor will not cause income from the Class A-R Certificate to be
attributable to a foreign permanent establishment or fixed base (within the
meaning of an applicable income tax treaty) of the Investor or another U.S.
taxpayer.

                                      E-1-5

<PAGE>

For purpose of this affidavit, the term "disqualified organization" means the
United States, any state or political subdivision thereof, any foreign
government, any international organization, any agency or instrumentality of any
of the foregoing (except any entity treated as other than an instrumentality of
the foregoing for purposes of Section 168(h)(2)(D) of the Internal Revenue Code
of 1986, as amended (the "Code")), any organization (other than a cooperative
described in Section 521 of the Code) that is exempt from taxation under the
Code (unless such organization is subject to tax on excess inclusions) and any
organization that is described in Section 1381(a)(2)(C) of the Code and the term
"U.S. Person" means a citizen or resident of the United States, a corporation or
partnership (unless, in the case of a partnership, Treasury regulations are
adopted that provide otherwise) created or organized in or under the laws of the
United States, any state thereof or the District of Columbia, including an
entity treated as a corporation or partnership for federal income tax purposes,
an estate whose income is subject to Unites 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 such trust, and one or
more such U.S. Persons have the authority to control all substantial decisions
of such trust, (or, to the extent provided in applicable Treasury regulations,
certain trusts in existence on August 20, 1996 which are eligible to elect to be
treated as U.S. Persons).

                                      E-1-6

<PAGE>

IN WITNESS WHEREOF, the Investor has caused this instrument to be executed on
its behalf, pursuant to authority of its Board of Directors, by its
_____________ this ___ day of ______________, 20__.

                                        [INVESTOR]

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

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

Subscribed and sworn before me this ___ day of ______________, 20__.

NOTARY PUBLIC

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

COUNTY OF
          ---------------------------

STATE OF
         ----------------------------

My commission expires the _____ day of __________ 20__.

                                      E-1-7

<PAGE>

                                   EXHIBIT E-2
                         FORM OF TRANSFEROR CERTIFICATE

                                     [DATE]

Wells Fargo Bank, N.A.
9062 Old Annapolis Road
Columbia, MD 21045
Attention: Corporate Trust Services - Merrill Lynch Mortgage Investors Trust,
           Series 2006-A3

Re: Merrill Lynch Mortgage Investors Trust, Series 2006-A3

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

                                        Very truly yours,

                                        [Transferor]

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                                      E-2-1

<PAGE>

                                   EXHIBIT F-1
                    FORM OF TRANSFEROR REPRESENTATION LETTER

                                                          ______________, 200__

Merrill Lynch Mortgage Investors, Inc.
4 World Financial Center
New York, New York 10281

Wells Fargo Bank, N.A.
9062 Old Annapolis Road
Columbia, MD 21045

     Re:  Merrill Lynch Mortgage Investors, Inc.,
          Mortgage Pass-Through Certificates, Series 2006-A3, Class [__]

Ladies and Gentlemen:

     In connection with the sale by ___________ (the "Seller") to ________ (the
"Purchaser") of $_________ Initial Certificate Principal Balance of Mortgage
Pass-Through Certificates, Series 2006-A3, Class _____ (the "Certificates"),
issued pursuant to the Pooling and Servicing Agreement (the "Pooling and
Servicing Agreement"), dated as of May 1, 2006 among Merrill Lynch Mortgage
Investors, Inc., as depositor (the "Depositor"), Wells Fargo Bank, N.A. as
master servicer (in such capacity, the "Master Servicer") and securities
administrator (in such capacity, the "Securities Administrator"), and HSBC Bank
USA, National Association, as trustee (the "Trustee"). The Seller hereby
certifies, represents and warrants to, and covenants with, the Depositor and the
Securities Administrator that:

     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.

                                      F-1-1

<PAGE>

                                        Very truly yours,

                                        ----------------------------------------
                                        (Seller)

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                                      F-1-2

<PAGE>

                                   EXHIBIT F-2
             FORM OF INVESTOR REPRESENTATION LETTER (NON-RULE 144A)

                                                               __________, 200__

Merrill Lynch Mortgage Investors, Inc.
4 World Financial Center
New York, New York 10281

Wells Fargo Bank, N.A.
9062 Old Annapolis Road
Columbia, MD 21045

     Re:  Merrill Lynch Mortgage Investors, Inc.,
          Mortgage Pass-Through Certificates, Series 2006-A3, Class [__]

Ladies and Gentlemen:

     In connection with our acquisition of the above Certificates we certify
that (a) we understand that the Certificates are not being registered under the
Securities Act of 1933, as amended (The "Act"), or any state securities laws and
are being transferred to us in a transaction that is exempt from the
registration requirements of the Act and any such laws, (b) we are an
institutional "accredited investor," as defined in Regulation D under the Act,
and have such knowledge and experience in financial and business matters that we
are capable of evaluating the merits and risks of investments in the
Certificates, (c) we have had the opportunity to ask questions of and receive
answers from the Depositor concerning the purchase of the Certificates and all
matters relating thereto or any additional information deemed necessary to our
decision to purchase the Certificates, (d) solely in the case of an ERISA
Restricted Certificate, we (i) are not an employee benefit plan or arrangement
subject to Title I of the Employee Retirement Income Security Act of 1974, as
amended ("ERISA"), a plan subject to Section 4975 of the Internal Revenue Code
of 1986, as amended (the "Code") or a plan subject to any provisions under any
federal, state, local, non-U.S. or other laws or regulations that are
substantively similar to foregoing provisions of ERISA or the Code ("Similar
Law") (collectively, a "Plan"), and are not directly or indirectly acquiring
this Certificate for, on behalf of or with any assets of any such Plan, (ii) if
the Certificate has been the subject of an ERISA-Qualifying Underwriting, are an
insurance company that is acquiring the Certificate with assets of an "insurance
company general account" as defined in Section V(E) of Prohibited Transaction
Class Exemption ("PTCE") 95-60, and the acquisition and holding of the
Certificate are covered and exempt under Sections I and III of PTCE 95-60, or
(iii) solely in the case of a Definitive Certificate, shall deliver herewith an
Opinion of Counsel satisfactory to the Securities Administrator, and upon which
the Securities Administrator shall be entitled to rely, to the effect that the
acquisition and holding of this certificate by the transferee will not result in
a nonexempt prohibited transaction under ERISA or the Code, or a violation of
Similar Law, and will not subject the Depositor, the Master Servicer, the
Securities Administrator or the Trustee to any obligation in addition to those
undertaken by such entities in the Pooling and Servicing Agreement, which
Opinion of Counsel shall not be an expense of the Depositor, the Master
Servicer, the Securities Administrator or the Trustee, (e) we are acquiring the
Certificates for investment for our own account and not with a

                                      F-2-1

<PAGE>

view to any distribution of such Certificates (but without prejudice to our
right at all times to sell or otherwise dispose of the Certificates in
accordance with clause (g) below), (f) we have not offered or sold any
Certificates to, or solicited offers to buy any Certificates from, any person,
or otherwise approached or negotiated with any person with respect thereto, or
taken any other action which would result in a violation of Section 5 of the
Act, and (g) we will not sell, transfer or otherwise dispose of any Certificates
unless (1) such sale, transfer or other disposition is made pursuant to an
effective registration statement under the Act or is exempt from such
registration requirements, and if requested, we will at our expense provide an
opinion of counsel satisfactory to the addressees of this Certificate that such
sale, transfer or other disposition may be made pursuant to an exemption from
the Act, (2) The purchaser or transferee of such Certificate has executed and
delivered to you a certificate to substantially the same effect as this
certificate, and (3) The purchaser or transferee has otherwise complied with any
conditions for transfer set forth in the Pooling and Servicing Agreement.

                                        Very truly yours,

                                        ----------------------------------------
                                        Print Name of Transferee

                                        By:
                                            ------------------------------------
                                            Authorized Officer

                                      F-2-2

<PAGE>

                                   EXHIBIT F-3
                            FORM OF RULE 144A LETTER

                                                              ____________, 2006

Merrill Lynch Mortgage Investors, Inc.
4 World Financial Center
New York, New York 10281

Wells Fargo Bank, N.A.
9062 Old Annapolis Road
Columbia, MD 21045

     Re:  Merrill Lynch Mortgage Investors, Inc.,
          Mortgage Pass-Through Certificates, Series 2006-A3, Class [__]

Ladies and Gentlemen:

     In connection with our acquisition of the above Certificates we certify
that (a) we understand that the Certificates are not being registered under the
Securities Act of 1933, as amended (The "Act"), or any state securities laws and
are being transferred to us in a transaction that is exempt from the
registration requirements of the Act and any such laws, (b) we have such
knowledge and experience in financial and business matters that we are capable
of evaluating the merits and risks of investments in the Certificates, (c) we
have had the opportunity to ask questions of and receive answers from the
Depositor concerning the purchase of the Certificates and all matters relating
thereto or any additional information deemed necessary to our decision to
purchase the Certificates, (d) solely in the case of an ERISA Restricted
Certificate, we (i) are not an employee benefit plan or arrangement subject to
Title I of the Employee Retirement Income Security Act of 1974, as amended
("ERISA"), a plan subject to Section 4975 of the Internal Revenue Code of 1986,
as amended (the "Code") or a plan subject to any provisions under any federal,
state, local, non-U.S. or other laws or regulations that are substantively
similar to foregoing provisions of ERISA or the Code ("Similar Law")
(collectively, a "Plan"), and are not directly or indirectly acquiring this
Certificate for, on behalf of or with any assets of any such Plan, (ii) if the
Certificate has been the subject of an ERISA-Qualifying Underwriting, are an
insurance company that is acquiring the Certificate with assets of an "insurance
company general account" as defined in Section V(E) of Prohibited Transaction
Class Exemption ("PTCE") 95-60, and the acquisition and holding of the
Certificate are covered and exempt under Sections I and III of PTCE 95-60, or
(iii) solely in the case of a Definitive Certificate, shall deliver herewith an
Opinion of Counsel satisfactory to the Securities Administrator, and upon which
the Securities Administrator shall be entitled to rely, to the effect that the
acquisition and holding of this certificate by the transferee will not result in
a nonexempt prohibited transaction under ERISA or the Code, or a violation of
Similar Law, and will not subject the Depositor, the Master Servicer, the
Securities Administrator or the Trustee to any obligation in addition to those
undertaken by such entities in the Pooling and Servicing Agreement, which
Opinion of Counsel shall not be an expense of the Depositor, the Master
Servicer, the Securities Administrator or the Trustee, (e) we have not, nor has
anyone acting on our behalf offered, transferred, pledged, sold or otherwise
disposed of the Certificates, any interest in the Certificates or any other
similar

                                      F-3-1

<PAGE>

security to, or solicited any offer to buy or accept a transfer, pledge or other
disposition of the Certificates, any interest in the Certificates or any other
similar security from, or otherwise approached or negotiated with respect to the
Certificates, any interest in the Certificates or any other similar security
with, any person in any manner, or made any general solicitation by means of
general advertising or in any other manner, or taken any other action, that
would constitute a distribution of the Certificates under the Act or that would
render the disposition of the Certificates a violation of Section 5 of the Act
or require registration pursuant thereto, nor will act, nor has authorized or
will authorize any person to act, in such manner with respect to the
Certificates, (f) we are a "qualified institutional buyer" as that term is
defined in Rule 144A under the Act ("Rule 144A") and have completed either of
the forms of certification to that effect attached hereto as Annex 1 or Annex 2,
(g) we are aware that the sale to us is being made in reliance on Rule 144A, and
(h) we are acquiring the Certificates for our own account or for resale pursuant
to Rule 144A and further, understand that such Certificates may be resold,
pledged or transferred only (A) to a person reasonably believed to be a
qualified institutional buyer that purchases for its own account or for the
account of a qualified institutional buyer to whom notice is given that the
resale, pledge or transfer is being made in reliance on Rule 144A, or (B)
pursuant to another exemption from registration under the Act.

                                        Very truly yours,

                                        ----------------------------------------
                                        Print Name of Transferee

                                        By:
                                            ------------------------------------
                                            Authorized Officer

                                      F-3-2

<PAGE>

                                                          ANNEX I TO EXHIBIT F-3

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

[For Transferees Other Than Registered Investment Companies]

     The undersigned (The "Buyer") hereby certifies as follows to the parties
listed in the Rule 144A Transferee Certificate to which this certification
relates with respect to the Certificates described therein:

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

     2. In connection with purchases by the Buyer, The Buyer is a "qualified
institutional buyer" as that term is defined in Rule 144A under the Securities
Act of 1933, as amended ("Rule 144A") because (i) The Buyer owned and/or
invested on a discretionary basis $___________(1) in securities (except for the
1 excluded securities referred to below) as of the end of the Buyer's most
recent fiscal year (such amount being calculated in accordance with Rule 144A
and (ii) The Buyer satisfies the criteria in the category marked below.

     ___ Corporation, etc. The Buyer is a corporation (other than a bank,
savings and loan association or similar institution), Massachusetts or similar
business trust, partnership, or charitable organization described in Section
501(c)(3) of the Internal Revenue Code of 1986, as amended.

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

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

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

     ___ Insurance Company. The Buyer is an insurance company whose primary and
predominant business activity is the writing of insurance or the reinsuring of
risks underwritten

----------
(1)  Buyer must own and/or invest on a discretionary basis at least $100,000,000
     in securities unless Buyer is a dealer, and, in that case, Buyer must own
     and/or invest on a discretionary basis at least $10,000,000 in securities.

                                      F-3-3

<PAGE>

by insurance companies and which is subject to supervision by the insurance
commissioner or a similar official or agency of a State, territory or the
District of Columbia.

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

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

     ___ Investment Advisor. The Buyer is an investment advisor registered under
the Investment Advisors Act of 1940.

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

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

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

     4. For purposes of determining the aggregate amount of securities owned
and/or invested on a discretionary basis by the Buyer, The Buyer used the cost
of such securities to the Buyer and did not include any of the securities
referred to in the preceding paragraph, except (i) where the Buyer reports its
securities holdings in its financial statements on the basis of their market
value, and (ii) no current information with respect to the cost of those
securities has been published. If clause (ii) in the preceding sentence applies,
The securities may be valued at market. Further, in determining such aggregate
amount, The Buyer may have included securities owned by subsidiaries of the
Buyer, but only if such subsidiaries are consolidated with the Buyer in its
financial statements prepared in accordance with generally accepted accounting
principles and if the investments of such subsidiaries are managed under the
Buyer's direction. However, such securities were not included if the Buyer is a
majority-owned, consolidated subsidiary of another enterprise and the Buyer is
not itself a reporting company under the Securities Exchange Act of 1934, as
amended.

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

                                      F-3-4

<PAGE>

     6. Until the date of purchase of the Rule 144A Securities, The Buyer will
notify each of the parties to which this certification is made of any changes in
the information and conclusions herein. Until such notice is given, The Buyer's
purchase of the Certificates will constitute a reaffirmation of this
certification as of the date of such purchase. In addition, if the Buyer is a
bank or savings and loan is provided above, The Buyer agrees that it will
furnish to such parties updated annual financial statements promptly after they
become available.

                                        ----------------------------------------
                                        Print Name of Buyer

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                                        Date:
                                              ----------------------------------

                                      F-3-5

<PAGE>

                                                         ANNEX II TO EXHIBIT F-3

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A
           [For Transferees That are Registered Investment Companies]

     The undersigned (The "Buyer") hereby certifies as follows to the parties
listed in the Rule 144A Transferee Certificate to which this certification
relates with respect to the Certificates described therein:

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

2. In connection with purchases by Buyer, The Buyer is a "qualified
institutional buyer" as defined in SEC Rule 144A because (i) The Buyer is an
investment company registered under the Investment Company Act of 1940, as
amended and (ii) as marked below, The Buyer alone, or the Buyer's Family of
Investment Companies, owned at least $100,000,000 in securities (other than the
excluded securities referred to below) as of the end of the Buyer's most recent
fiscal year. For purposes of determining the amount of securities owned by the
Buyer or the Buyer's Family of Investment Companies, The cost of such securities
was used, except (i) where the Buyer or the Buyer's Family of Investment
Companies reports its securities holdings in its financial statements on the
basis of their market value, and (ii) no current information with respect to the
cost of those securities has been published. If clause (ii) in the preceding
sentence applies, The securities may be valued at market.

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

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

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

4. The term "securities" as used herein does not include (i) securities of
issuers that are affiliated with the Buyer or are part of the Buyer's Family of
Investment Companies, (ii) securities issued or guaranteed by the U.S. or any
instrumentality thereof, (iii) bank deposit notes and certificates of deposit,
(iv) loan participations, (v) repurchase agreements, (vi) securities owned but
subject to a repurchase agreement and (vii) currency, interest rate and
commodity swaps.

                                      F-3-6

<PAGE>

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

6. Until the date of purchase of the Certificates, The undersigned will notify
the parties listed in the Rule 144A Transferee Certificate to which this
certification relates of any changes in the information and conclusions herein.
Until such notice is given, The Buyer's purchase of the Certificates will
constitute a reaffirmation of this certification by the undersigned as of the
date of such purchase.

                                        ----------------------------------------
                                        Print Name of Buyer or Adviser

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                                        IF AN ADVISER:

                                        ----------------------------------------
                                        Print Name of Buyer

                                        Date:
                                              ----------------------------------

                                      F-3-7
<PAGE>

                                    EXHIBIT G
                           FORM OF CUSTODIAL AGREEMENT

          THIS CUSTODIAL AGREEMENT (as amended and supplemented from time to
time, the "Agreement"), dated as of May 28, 2006, by and among HSBC BANK USA,
NATIONAL ASSOCIATION, as trustee (including its successors under the Pooling and
Servicing Agreement defined below, the "Trustee"), MERRILL LYNCH MORTGAGE
INVESTORS, INC., as company (together with any successor in interest, the
"Company"), WELLS FARGO BANK, N.A., as securities administrator and master
servicer (together with any successor in interest or successor under the Pooling
and Servicing Agreement referred to below, the "Master Servicer") and WELLS
FARGO BANK, N.A., as custodian (together with any successor in interest or any
successor appointed hereunder, the "Custodian").

                                WITNESSETH THAT:

          WHEREAS, the Company, the Master Servicer and the Trustee have entered
into a Pooling and Servicing Agreement, dated as of May 1, 2006, relating to the
issuance of Merrill Lynch Mortgage Investors Trust., Series 2006-A3 Mortgage
Pass-Through Certificates, (as in effect on the date of this agreement, the
"Original Pooling and Servicing Agreement," and as amended and supplemented from
time to time, the "Pooling and Servicing Agreement"); and

          WHEREAS, the Custodian has agreed to act as agent for the Trustee for
the purposes of receiving and holding certain documents and other instruments
delivered by the Company or the Master Servicer under the Pooling and Servicing
Agreement and the Servicers under the their respective Servicing Agreements, all
upon the terms and conditions and subject to the limitations hereinafter set
forth;

          NOW, THEREFORE, in consideration of the premises and the mutual
covenants and agreements hereinafter set forth, the Trustee, the Company, the
Master Servicer and the Custodian hereby agree as follows:

                                  ARTICLE XIII
                                   DEFINITIONS

          Capitalized terms used in this Agreement and not defined herein shall
have the meanings assigned in the Original Pooling and Servicing Agreement,
unless otherwise required by the context herein.

                                  ARTICLE XIV
                          CUSTODY OF MORTGAGE DOCUMENTS

          Section 14.01 Custodian to Act as Agent: Acceptance of Mortgage Files,
Attestations and Assessments of Compliance.

          (a) The Custodian, as the duly appointed agent of the Trustee for
these purposes, acknowledges (subject to any exceptions noted in the Initial
Certification referred to in Section 2.3(a)) receipt of the Mortgage Files
relating to the Mortgage Loans identified on the

                                      G-1

<PAGE>

schedule attached hereto (the "Mortgage Files") and declares that it holds and
will hold such Mortgage Files as agent for the Trustee, in trust, for the use
and benefit of all present and future Certificateholders.

          (b) On or before March 1st of each calendar year, beginning with March
1, 2007, the Custodian shall, at its own expense, cause a firm of independent
public accountants (who may also render other services to Custodian), which is a
member of the American Institute of Certified Public Accountants, to furnish to
the Company and the Master Servicer a report to the effect that such firm
attests to, and reports on, the assessment made by such asserting party pursuant
to Section 2.01(c) below, which report shall be made in accordance with
standards for attestation engagements issued or adopted by the Public Company
Accounting Oversight Board.

          (c) On or before March 1st of each calendar year, beginning with March
1, 2007, the Custodian shall deliver to the Company and the Master Servicer a
report regarding its assessment of compliance with the servicing criteria
identified in Exhibit Three attached hereto, as of and for the period ending the
end of the fiscal year ending no later than December 31 of the year prior to the
year of delivery of the report, with respect to asset-backed security
transactions taken as a whole in which the Custodian is performing any of the
servicing criteria specified in Exhibit Three and that are backed by the same
asset type backing such asset-backed securities. Each such report shall include
(a) a statement of the party's responsibility for assessing compliance with the
servicing criteria applicable to such party, (b) a statement that such party
used the criteria identified in Item 1122(d) of Regulation AB (Section
229.1122(d)) to assess the compliance with the applicable servicing criteria,
(c) disclosure of any material instance of noncompliance identified by such
party, and (d) a statement that a registered public accounting firm has issued
an attestation report on such party's assessment of compliance with the
applicable servicing criteria, which report shall be delivered by the Custodian
as provided in this Section 2.01(c). However, the Custodian's obligation to
provide a report on assessment of compliance or an attestation with respect to
itself and with respect to any Subcontractor shall be suspended in any year in
which the Issuing Entity's reporting obligations under the Exchange Act are
suspended.

          (d) The Custodian has not and shall not engage any Subcontractor which
is "participating in the servicing function" within the meaning of Item 1122 of
Regulation AB, unless such Subcontractor agrees to provide in any year in which
a Form 10-K will be filed by the Trust., no later than March 1st of such year,
an assessment and a statement of registered public accounting firm certifying
its compliance with the applicable servicing criteria in Item 1122(d) of
Regulation AB as of and for the period ending the end of the fiscal year ending
no later than December 31 of the year prior to the year of delivery of the
report. "Subcontractor" as used herein means any vendor, subcontractor or other
Person that is not responsible for the overall servicing (as "servicing" is
commonly understood by participants in the mortgage-backed securities market) of
the Mortgage Loans but performs one or more discrete functions identified in
Item 1122(d) of Regulation AB with respect to the Mortgage Loans under the
direction or authority of the Custodian.

          (e) The Custodian agrees to indemnify the Company, the Master
Servicer, the Trust Fund and each of their respective directors, officers,
employees and agents and hold each

                                      G-2

<PAGE>

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 the engagement of any Subcontractor in violation of Section 2.01(d) or any
failure by the Custodian to deliver any information, report, certification,
accountants' letter or other material when and as required under this Agreement,
including any report under Sections 2.01(b) or 2.01(c).

          Section 14.02 Recordation of Assignments. If any Mortgage File
includes one or more assignments of Mortgage to the Trustee in a state which is
specifically excluded from the Opinion of Counsel delivered by the Mortgage Loan
Seller to the Trustee (with a copy to the Custodian) pursuant to the provisions
of Section 2.01 of the Pooling and Servicing Agreement, the Custodian shall
deliver each such assignment to the Company for the purpose of recording it in
the appropriate public office for real property records, and the Company, at no
expense to the Custodian, shall promptly cause to be recorded in the appropriate
public office for real property records each such assignment of Mortgage and,
upon receipt thereof from such public office, shall return each such assignment
of Mortgage to the Custodian.

          Section 14.03 Review of Mortgage Files.

          (a) On or prior to the Closing Date, the Custodian agrees, for the
benefit of Certificateholders, to review, in accordance with the provisions of
Section 2.02 of the Pooling and Servicing Agreement, each such document, and
shall deliver to the Trustee an Initial Certification in the form annexed hereto
as Exhibit One evidencing receipt (subject to any exceptions noted therein) of a
Mortgage File for each of the Mortgage Loans listed on the Schedule attached
hereto (the "Mortgage Loan Schedule") and certifying that all such documents
have been executed and received and that such documents relate to the Mortgage
Loans identified on the Mortgage Loan Schedule, except for any exceptions listed
on Schedule A attached to such Initial Certification. The Custodian shall be
under no duty or obligation to inspect, review or examine said documents,
instruments, certificates or other papers to determine that the same are
genuine, enforceable, or appropriate for the represented purpose or that they
have actually been recorded or that they are other than what they purport to be
on their face.

          (b) Not later than 180 days after the Closing Date, the Custodian
shall review the Mortgage Files as provided in Section 2.02 of the Pooling and
Servicing Agreement and deliver to the Trustee a Final Certification in the form
annexed hereto as Exhibit Two evidencing the completeness of the Mortgage Files
(subject to any exceptions noted therein).

          (c) In reviewing the Mortgage Files as provided herein and in the
Pooling and Servicing Agreement, the Custodian shall make no representation as
to and shall not be responsible to verify (i) the validity, legality,
enforceability, due authorization, recordability, sufficiency or genuineness of
any of the documents included in any Mortgage File or (ii) the collectibility,
insurability, effectiveness or suitability of any of the documents in any
Mortgage File.

          Upon receipt of written request from the Trustee, the Custodian shall
as soon as practicable supply the Trustee with a list of all of the documents
relating to the Mortgage Loans then contained in the Mortgage Files.

                                      G-3

<PAGE>

          Section 14.04 Notification of Breaches of Representations and
Warranties. Upon discovery by the Custodian of a breach of any representation or
warranty made by the Company as set forth in the Pooling and Servicing Agreement
with respect to a Mortgage Loan relating to a Mortgage File, the Custodian shall
give prompt written notice to the Company, the related Servicer and the Trustee.

          Section 14.05 Custodian to Cooperate: Release of Mortgage Files. Upon
receipt of written notice from the Master Servicer that the Mortgage Loan Seller
has repurchased a Mortgage Loan pursuant to Article II of the Pooling and
Servicing Agreement, and that the purchase price therefor has been deposited in
the Master Servicer Collection Account or the Distribution Account, then the
Custodian agrees to promptly release to the Mortgage Loan Seller the related
Mortgage File.

          Upon the Custodian's receipt of a request for release (a "Request for
Release") substantially in the form of Exhibit D to the Pooling and Servicing
Agreement signed by a Servicing Officer of the related Servicer stating that it
has received payment in full of a Mortgage Loan or that payment in full will be
escrowed in a manner customary for such purposes, the Custodian agrees promptly
to release to such Servicer the related Mortgage File. The Company shall deliver
to the Custodian and the Custodian agrees to accept the Mortgage Note and other
documents constituting the Mortgage File with respect to any Substitute Mortgage
Loan.

          From time to time as is appropriate for the servicing or foreclosure
of any Mortgage Loan, including, for this purpose, collection under any Primary
Mortgage Insurance Policy, the related Servicer shall deliver to the Custodian a
Request for Release signed by a Servicing Officer requesting that possession of
all of the Mortgage File be released to such Servicer and certifying as to the
reason for such release and that such release will not invalidate any insurance
coverage provided in respect of the Mortgage Loan under any of the Insurance
Policies. Upon receipt of the foregoing, the Custodian shall deliver the
Mortgage File to such Servicer. The related Servicer shall cause each Mortgage
File or any document therein so released to be returned to the Custodian when
the need therefore by such Servicer no longer exists, unless (i) the Mortgage
Loan has been liquidated and the Liquidation Proceeds relating to the Mortgage
Loan have been deposited in the Master Servicer Collection Account or the
Distribution Account or (ii) the Mortgage File or such document has been
delivered to an attorney, or to a public trustee or other public official as
required by law, for purposes of initiating or pursuing legal action or other
proceedings for the foreclosure of the Mortgaged Property either judicially or
non-judicially, and the related Servicer has delivered to the Custodian a
certificate of a Servicing Officer certifying as to the name and address of the
Person to which such Mortgage File or such document was delivered and the
purpose or purposes of such delivery.

          At any time that a Servicer is required to deliver to the Custodian a
Request for Release, such Servicer shall deliver two copies of the Request for
Release if delivered in hard copy or such Servicer may furnish such Request for
Release electronically to the Custodian, in which event the Servicing Officer
transmitting the same shall be deemed to have signed the Request for Release. In
connection with any Request for Release of a Mortgage File because of

                                      G-4

<PAGE>

a repurchase of a Mortgage Loan, the related Servicer shall send to the Trustee
an assignment of mortgage, without recourse, representation or warranty from the
Trustee to the Mortgage Loan Seller and the related Mortgage Note which shall be
endorsed without recourse, representation or warranty by the Trustee and the
Trustee shall forward such documents to the Mortgage Loan Seller. In connection
with any Request for Release of a Mortgage File because of the payment in full
of a Mortgage Loan, the related Servicer shall send to the Trustee a certificate
of satisfaction or other similar instrument to be executed by or on behalf of
the Trustee and returned to such Servicer.

          Section 14.06 Assumption Agreements. In the event that any assumption
agreement or substitution of liability agreement is entered into with respect to
any Mortgage Loan subject to this Agreement in accordance with the terms and
provisions of the Pooling and Servicing Agreement, the Master Servicer, to the
extent provided in the related Servicing Agreement, shall cause the related
Servicer to notify the Custodian that such assumption or substitution agreement
has been completed by forwarding to the Custodian the original of such
assumption or substitution agreement, which shall be added to the related
Mortgage File and, for all purposes, shall be considered a part of such Mortgage
File to the same extent as all other documents and instruments constituting
parts thereof.

                                   ARTICLE XV
                            CONCERNING THE CUSTODIAN

          Section 15.01 Custodian a Bailee and Agent of the Trustee. With
respect to each Mortgage Note, Mortgage and other documents constituting each
Mortgage File which are delivered to the Custodian, the Custodian is exclusively
the bailee and agent of the Trustee and has no instructions to hold any Mortgage
Note or Mortgage for the benefit of any person other than the Trustee and the
Certificateholders and undertakes to perform such duties and only such duties as
are specifically set forth in this Agreement. Except upon compliance with the
provisions of Section 2.5 of this Agreement, no Mortgage Note, Mortgage or
Mortgage File shall be delivered by the Custodian to the Company, the Servicer
or the Master Servicer or otherwise released from the possession of the
Custodian.

          Section 15.02 Reserved.

          Section 15.03 Custodian May Own Certificates. The Custodian in its
individual or any other capacity may become the owner or pledgee of Certificates
with the same rights it would have if it were not Custodian.

          Section 15.04 Master Servicer to Pay Custodian's Fees and Expenses.
The Master Servicer covenants and agrees to pay to the Custodian from time to
time, and the Custodian shall be entitled to, reasonable compensation for all
services rendered by it in the exercise and performance of any of the powers and
duties hereunder of the Custodian, and the Master Servicer will pay or reimburse
the Custodian upon its request for all reasonable expenses, disbursements and
advances incurred or made by the Custodian in accordance with any of the
provisions of this Agreement (including the reasonable compensation and the
expenses and disbursements of its counsel and of all persons not regularly in
its employ), except any such expense, disbursement or advance as may arise from
its negligence or bad faith or to the extent

                                      G-5

<PAGE>

that such cost or expense is indemnified by the Company pursuant to the Pooling
and Servicing Agreement.

          Section 15.05 Custodian May Resign; Trustee May Remove Custodian. The
Custodian may resign from the obligations and duties hereby imposed upon it as
such obligations and duties relate to its acting as Custodian of the Mortgage
Loans. Upon receiving such notice of resignation, the Trustee shall either take
custody of the Mortgage Files itself and give prompt notice thereof to the
Company, the Master Servicer and the Custodian, or promptly appoint a successor
Custodian by written instrument, in duplicate, one copy of which instrument
shall be delivered to the resigning Custodian and one copy to the successor
Custodian. If the Trustee shall not have taken custody of the Mortgage Files and
no successor Custodian shall have been so appointed and have accepted
appointment within 30 days after the giving of such notice of resignation, the
resigning Custodian may petition any court of competent jurisdiction for the
appointment of a successor Custodian.

          The Trustee may remove the Custodian at any time with the consent of
the Master Servicer. In such event, the Trustee shall appoint, or petition a
court of competent jurisdiction to appoint, a successor Custodian hereunder. Any
successor Custodian shall be a depository institution subject to supervision or
examination by federal or state authority, shall be able to satisfy the other
requirements contained in Section 3.7 and shall be unaffiliated with the
Servicer or the Company.

          Any resignation or removal of the Custodian and appointment of a
successor Custodian pursuant to any of the provisions of this Section 3.5 shall
become effective upon acceptance of appointment by the successor Custodian. The
Trustee shall give prompt notice to the Company and the Master Servicer of the
appointment of any successor Custodian. No successor Custodian shall be
appointed by the Trustee without the prior approval of the Company and the
Master Servicer.

          Section 15.06 Merger or Consolidation of Custodian. Any Person into
which the Custodian may be merged or converted or with which it may be
consolidated, or any Person resulting from any merger, conversion or
consolidation to which the Custodian shall be a party, or any Person succeeding
to the business of the Custodian, shall be the successor of the Custodian
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.

          Section 15.07 Representations of the Custodian. The Custodian hereby
represents that it is a depository institution subject to supervision or
examination by a federal or state authority, has a combined capital and surplus
of at least $15,000,000 and is qualified to do business in the jurisdictions in
which it will hold any Mortgage File.

                                  ARTICLE XVI
                            MISCELLANEOUS PROVISIONS

          Section 16.01 Notices. All notices, requests, consents, demands and
other communications required under this Agreement or pursuant to any other
instrument or document delivered hereunder shall be in writing and, unless
otherwise specifically provided, may be

                                      G-6

<PAGE>

delivered personally, by telegram or telex, or by registered or certified mail,
postage prepaid, return receipt requested, at the addresses specified on the
signature page hereof (unless changed by the particular party whose address is
stated herein by similar notice in writing), in which case the notice will be
deemed delivered when received.

          Section 16.02 Amendments. No modification or amendment of or
supplement to this Agreement shall be valid or effective unless the same is in
writing and signed by all parties hereto, and neither the Company, the Master
Servicer nor the Trustee shall enter into any amendment hereof except as
permitted by the Pooling and Servicing Agreement. The Trustee shall give prompt
notice to the Custodian of any amendment or supplement to the Pooling and
Servicing Agreement and furnish the Custodian with written copies thereof.

          Section 16.03 GOVERNING LAW. THIS AGREEMENT SHALL BE DEEMED A CONTRACT
MADE UNDER THE LAWS OF THE STATE OF NEW YORK AND SHALL BE CONSTRUED AND ENFORCED
IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK.

          Section 16.04 Recordation of Agreement. To the extent permitted by
applicable law, this Agreement is subject to recordation in all appropriate
public offices for real property records in all the counties or other comparable
jurisdictions in which any or all of the properties subject to the Mortgages are
situated, and in any other appropriate public recording office or elsewhere,
such recordation to be effected by the Company and at the Trust's expense on
direction by the Trustee, but only upon direction accompanied by an Opinion of
Counsel (which shall be at the expense of the party requesting such recordation
and in no event at the expense of the Trustee) reasonably satisfactory to the
Company to the effect that the failure to effect such recordation is likely to
materially and adversely affect 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 16.05 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.

                                      G-7

<PAGE>

          IN WITNESS WHEREOF, this Agreement is executed as of the date first
above written.

Address:                                HSBC BANK USA, NATIONAL ASSOCIATION, as
                                        Trustee

452 Fifth Avenue
New York, NY 10018                      By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

Address:                                MERRILL LYNCH MORTGAGE INVESTORS, INC.

4 World Financial Center
New York, NY 10281                      By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

Address:                                WELLS FARGO BANK, N.A.,
                                        as Master Servicer

9062 Old Annapolis Road
Columbia, Maryland 21045-1951           By:
                                            ------------------------------------
                                        Name: Michael D. Pinzon
                                        Title: Assistant Vice President

Address:                                WELLS FARGO BANK, N.A.,
                                        as Custodian

1015 10th Avenue Southeast, MS 0031
Minneapolis, MN 55414                   By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                                      G-8

<PAGE>

                     EXHIBIT ONE TO THE CUSTODIAL AGREEMENT

                     FORM OF CUSTODIAN INITIAL CERTIFICATION

                                                                    May __, 2006

Merrill Lynch Mortgage Investors, Inc.
4 World Financial Center, 10th Floor
New York, New York 10281

HSBC Bank USA, National Association
452 Fifth Avenue
New York, NY 10018

     Re: Pooling and Servicing Agreement, dated as of May 1, 2006, among
         Merrill Lynch Mortgage Investors, Inc., as depositor, Wells Fargo Bank,
         N.A., as master servicer and securities administrator, and HSBC Bank
         USA, National Association, as trustee,
         Mortgage Pass-Through Certificates, Series 2006-A3

Ladies and Gentlemen:

     Attached is the Custodian's preliminary exception report delivered in
accordance with Section 2.02 of the referenced Pooling and Servicing Agreement
(the "Pooling and Servicing Agreement"). Capitalized terms used but not
otherwise defined herein shall have the meanings set forth in the Pooling and
Servicing Agreement.

     The Custodian has made no independent examination of any documents
contained in each Mortgage File beyond the review specifically required in the
Pooling and Servicing Agreement. The Custodian makes no representations as to
(i) the validity, legality, sufficiency, enforceability or genuineness of any of
the documents contained in the Mortgage File pertaining to the Mortgage Loans
identified on the Mortgage Loan Schedule, (ii) the collectability, insurability,
effectiveness or suitability of any such Mortgage Loan or (iii) the existence of
any assumption, modification, written assurance, or substitution agreement, with
respect to any Mortgage File if no such documents appear in the Mortgage File
delivered to the Custodian.

                                            WELLS FARGO BANK, N.A., as Custodian

                                            By:
                                                --------------------------------
                                            Name:
                                                  ------------------------------
                                            Title:
                                                   -----------------------------

                                      G-9

<PAGE>

                     EXHIBIT TWO TO THE CUSTODIAL AGREEMENT
                      FORM OF CUSTODIAN FINAL CERTIFICATION

                                                              ____________, 200_

Merrill Lynch Mortgage Investors, Inc.
4 World Financial Center, 10th Floor
New York, New York 10281
Attention: ____________________

HSBC Bank USA, National Association
452 Fifth Avenue
New York, NY 10018

     Re: Pooling and Servicing Agreement, dated as of May 1, 2006, among
         Merrill Lynch Mortgage Investors, Inc., as depositor, Wells Fargo Bank,
         N.A., as master servicer and securities administrator and HSBC Bank
         USA, National Association, as trustee,
         Mortgage Pass-Through Certificates, Series 2006-A3

Ladies and Gentlemen:

     In accordance with Section 2.02 of the above-captioned Pooling and
Servicing Agreement, the undersigned, hereby certifies that, except as noted on
the Schedule of Exceptions attached hereto, for each Mortgage Loan listed on the
Mortgage Loan Schedule (other than any Mortgage Loan paid in full or listed on
the attachment hereto), it has received a complete Mortgage File which includes
the documents required to be included in the Mortgage File as set forth in the
Pooling and Servicing Agreement.

     The undersigned has made no independent examination of any documents
contained in each Mortgage File beyond the review specifically required in the
above-referenced Pooling and Servicing Agreement. The undersigned makes no
representation as to: (i) the validity, legality, sufficiency, enforceability or
genuineness of any documents contained in any Mortgage File for any of the
Mortgage Loans listed on the Mortgage Loan Schedule to the Pooling and Servicing
Agreement, (ii) the collectability, insurability, effectiveness or suitability
of any such Mortgage Loan or (iii) whether any Mortgage File should include any
flood insurance policy, any rider, addends, surety or guaranty agreement, power
of attorney, buy down agreement, assumption agreement, modification agreement,
written assurance or substitution agreement.

                                      G-10

<PAGE>

     Capitalized words and phrases used herein shall have the respective
meanings assigned to them in the above-captioned Pooling and Servicing
Agreement.

                                            WELLS FARGO BANK, N.A., as Custodian

                                            By:
                                                --------------------------------
                                            Name:
                                                  ------------------------------

                                      G-11
<PAGE>

                    EXHIBIT THREE TO THE CUSTODIAL AGREEMENT

     FORM OF CERTIFICATION REGARDING SERVICING CRITERIA TO BE ADDRESSED IN
                        REPORT ON ASSESSMENT COMPLIANCE

The assessment of compliance to be delivered by Wells Fargo Bank shall address,
at a minimum, the criteria identified below as "Applicable Servicing Criteria":

<TABLE>
<CAPTION>
                                    SERVICING CRITERIA
-----------------------------------------------------------------------------------------   APPLICABLE SERVICING
    REFERENCE                                     CRITERIA                                        CRITERIA
----------------   ----------------------------------------------------------------------   --------------------
<S>                <C>                                                                      <C>
                                      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.

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.

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.

                                     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.

1122(d)(2)(ii)     Disbursements made via wire transfer on behalf of an obligor or to an
                   investor are made only by authorized personnel.

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.

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.

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.

1122(d)(2)(vi)     Unissued checks are safeguarded so as to prevent unauthorized access.

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.
</TABLE>

                                      G-12

<PAGE>

<TABLE>
<CAPTION>
                                    SERVICING CRITERIA
-----------------------------------------------------------------------------------------   APPLICABLE SERVICING
    REFERENCE                                     CRITERIA                                        CRITERIA
----------------   ----------------------------------------------------------------------   --------------------
<S>                <C>                                                                      <C>
                                     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.

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.

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.

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.

                                          POOL ASSET ADMINISTRATION

1122(d)(4)(i)      Collateral or security on mortgage loans is maintained as required by              X
                   the transaction agreements or related mortgage loan documents.

1122(d)(4)(ii)     Mortgage loan and related documents are safeguarded as required by the             X
                   transaction agreements.

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.

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.

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.

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.

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.

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).

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.
</TABLE>

                                      G-13

<PAGE>

<TABLE>
<CAPTION>
                                    SERVICING CRITERIA
-----------------------------------------------------------------------------------------   APPLICABLE SERVICING
    REFERENCE                                     CRITERIA                                        CRITERIA
----------------   ----------------------------------------------------------------------   --------------------
<S>                <C>                                                                      <C>
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.

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.

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.

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.

1122(d)(4)(xiv)    Delinquencies, charge-offs and uncollectible accounts are recognized
                   and recorded in accordance with the transaction agreements.

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.
</TABLE>

                                      G-14
<PAGE>

                                    EXHIBIT H

                                   [RESERVED]

                                      H-1-1

<PAGE>

                                   EXHIBIT I-1
                ASSIGNMENT, ASSUMPTION AND RECOGNITION AGREEMENT
                           NATIONAL CITY MORTGAGE CO.
                             (PROVIDED UPON REQUEST)

                                     I-1-1

<PAGE>

                                   EXHIBIT I-2
                ASSIGNMENT, ASSUMPTION AND RECOGNITION AGREEMENT
                          COUNTRYWIDE HOME LOANS, INC.
                             (PROVIDED UPON REQUEST)

                                      I-2-1

<PAGE>

                                   EXHIBIT I-3
                ASSIGNMENT, ASSUMPTION AND RECOGNITION AGREEMENT
                                   WELLS FARGO
                             (PROVIDED UPON REQUEST)

                                      I-3-1

<PAGE>

                                    EXHIBIT J
                    FORM OF MORTGAGE LOAN PURCHASE AGREEMENT

          MORTGAGE LOAN PURCHASE AGREEMENT, dated as of May 28, 2006, as amended
and supplemented by any and all amendments hereto (collectively, the
"Agreement"), by and between MERRILL LYNCH MORTGAGE LENDING, INC., a Delaware
corporation (the "Seller"), and MERRILL LYNCH MORTGAGE INVESTORS, INC., a
Delaware corporation (the "Purchaser").

          Upon the terms and subject to the conditions of this Agreement, the
Seller agrees to sell, and the Purchaser agrees to purchase, certain first lien,
adjustable-rate mortgage loans secured by one- to four-family residences,
townhouses, individual condominiums, co-op units and units in planned unit
developments (collectively, the "Mortgage Loans") as described herein. The
Purchaser intends to deposit the Mortgage Loans into a trust fund (the "Trust
Fund") and create Mortgage Pass-Through Certificates, MLMI Series 2006-A3 (the
"Certificates"), under a pooling and servicing agreement, to be dated as of May
1, 2006 (the "Pooling and Servicing Agreement"), by and among the Purchaser, as
depositor, HSBC Bank USA, National Association, as trustee (the "Trustee") and
Wells Fargo Bank, N.A., as master servicer and securities administrator (the
"Master Servicer" and "Securities Administrator").

          The Purchaser has filed with the Securities and Exchange Commission
(the "Commission") a registration statement on Form S-3 (Number 333-130545)
relating to its Mortgage Pass-Through Certificates and the offering of certain
series thereof (including certain classes of the Certificates) from time to time
in accordance with Rule 415 under the Securities Act of 1933, as amended, and
the rules and regulations of the Commission promulgated thereunder (the
"Securities Act"). Such registration statement, when it became effective under
the Securities Act, and the prospectus relating to the public offering of
certain classes of the Certificates by the Purchaser (the "Public Offering"), as
from time to time each is amended or supplemented pursuant to the Securities Act
or otherwise, are referred to herein as the "Registration Statement" and the
"Prospectus," respectively. The "Prospectus Supplement" shall mean that
supplement, dated May [26], 2006 to the Prospectus, dated March 31, 2006,
relating to certain classes of the Certificates. With respect to the Public
Offering of certain classes of the Certificates, the Purchaser and Merrill
Lynch, Pierce, Fenner & Smith Incorporated ("Merrill Lynch") have entered into a
terms agreement dated as of May [25], 2006 to an underwriting agreement dated
February 28, 2003, between the Purchaser and Merrill Lynch (together, the
"Underwriting Agreement").

          Now, therefore, in consideration of the premises and the mutual
agreements set forth herein, the parties hereto agree as follows:

Section 1. Definitions.

     Certain terms are defined herein. Capitalized terms used herein but not
defined herein shall have the meanings specified in the Pooling and Servicing
Agreement. The following other terms are defined as follows:

          Closing Date: May 31, 2006.

                                      J-1

<PAGE>

          Cut-off Date: May 1, 2006.

          Cut-off Date Balance: $[____________].

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

          Due Date: With respect to each Mortgage Loan, the first day in each
month.

          Master Servicer: Wells Fargo Bank, N.A.

          Merrill Lynch: Merrill Lynch, Pierce, Fenner & Smith Incorporated.

          Moody's: Moody's Investors Service, Inc., or its successors in
interest.

          Mortgage: The mortgage or deed of trust creating a first lien on an
interest in real property securing a Mortgage Note.

          Mortgage File: The items referred to in Exhibit 1 and Exhibit 2
pertaining to a particular Mortgage Loan and any additional documents required
to be added to such documents pursuant to this Agreement.

          Mortgage Interest Rate: The annual rate of interest borne by a
Mortgage Note as stated therein.

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

          Net Rate: For each Mortgage Loan, the Mortgage Interest Rate for such
Mortgage Loan less the Master Servicing Fee Rate.

          Offered Certificates: Shall mean the Class I-A, Class II-A-1, Class
II-A-2, Class III-A-1, Class III-A-2, Class IV-A-1, Class IV-A-2, Class V-A-1,
Class V-A-2, Class VI-A-1, Class VI-A-2, Class A-R, Class M-1, Class M-2 and
Class M-3 Certificates issued pursuant to the Pooling and Servicing Agreement.

          Opinion of Counsel: A written opinion of counsel, who may be counsel
for the Seller or the Purchaser, reasonably acceptable to the Trustee.

          Person: Any legal person, including any individual, corporation,
partnership, joint venture, association, joint stock company, trust,
unincorporated organization or government or any agency or political subdivision
thereof.

          Purchase Price: With respect to any Mortgage Loan required to be
purchased by the Seller pursuant to the applicable provisions of this Agreement,
an amount equal to the sum of (i) 100% of the principal remaining unpaid on such
Mortgage Loan as of the date of purchase (including if a foreclosure has already
occurred, the principal balance of the related Mortgage Loan at the time the
Mortgaged Property was acquired), (ii) accrued and unpaid interest thereon

                                      J-2

<PAGE>

at the Mortgage Interest Rate through and including the last day of the month of
purchase and (iii) any costs and damages incurred by the Issuing Entity in
connection with any violation by such Mortgage Loan of any predatory or
abusive-lending law.

          Rating Agencies: S&P and Moody's, each a "Rating Agency."

          S&P: Standard & Poor's, a division of The McGraw-Hill Companies, Inc.,
or its successors in interest.

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

          Substitute Mortgage Loan: A mortgage loan substituted for a Deleted
Mortgage Loan which must meet on the date of such substitution the requirements
stated herein and in the Pooling and Servicing Agreement; upon such
substitution, such mortgage loan shall be a "Mortgage Loan" hereunder.

          Value: The value of the Mortgaged Property at the time of origination
of the related Mortgage Loan, such value being the lesser of (i) the value of
such property set forth in an appraisal accepted by the Originator or (ii) the
sales price of such property at the time of origination.

Section 2. Purchase and Sale of the Mortgage Loans and Related Rights.

          (a) Upon satisfaction of the conditions set forth in Section 10
hereof, the Seller agrees to sell, and the Purchaser agrees to purchase Mortgage
Loans having an aggregate Cut-off Date Balance of $[_____________].

          (b) The closing for the purchase and sale of the Mortgage Loans and
the closing for the issuance of the Certificates will take place on the Closing
Date at the office of the Purchaser's counsel in New York, New York or such
other place as the parties shall agree.

          (c) Upon the satisfaction of the conditions set forth in Section 10
hereof, on the Closing Date, in consideration of the purchase of the Mortgage
Loans, the Purchaser shall (i) pay to the Seller an amount equal to the net sale
proceeds of the Offered Certificates plus accrued interest in immediately
available funds by wire transfer to such account or accounts as shall be
designated by the Seller and (ii) deliver to the Seller the Class B
Certificates.

          (d) In addition to the foregoing, on the Closing Date the Seller
assigns to the Purchaser without recourse all of its right, title and interest
in (1) the Master Seller's Warranties and Servicing Agreement, dated as of May
1, 2004, between Merrill Lynch Bank, USA ("MLBUSA") and National City Mortgage
Co. ("National City"), as amended, (2) the Assignment, Assumption and
Recognition Agreement, dated as of May 1, 2006, among the Seller, the Purchaser
and National City, (3) the Master Mortgage Loan Purchase and Servicing
Agreement, dated as of November 1, 2004, by and between MLBUSA and Countrywide
Home Loans, Inc. ("CWHL"), as amended, (4) the Assignment, Assumption and
Recognition Agreement, dated as of May 1, 2006, among the Seller, the Purchaser,
CWHL and Countrywide

                                      J-3

<PAGE>

Home Loans Servicing LP, (5) the Seller's Warranties and Servicing Agreement,
dated as of October 1, 2005, between the Seller and Wells Fargo Bank, N.A.
("Wells Fargo") and (6) the Assignment, Assumption and Recognition Agreement,
dated as of May 1, 2006, among the Seller, the Purchaser and Wells Fargo.

Section 3. Mortgage Loan Schedules.

          The Seller agrees to provide to the Purchaser as of the date hereof a
preliminary listing of the Mortgage Loans (the "Preliminary Mortgage Loan
Schedule") setting forth the information listed on Exhibit 3 to this Agreement
with respect to each of the Mortgage Loans being sold by the Seller. If there
are changes to the Preliminary Mortgage Loan Schedule, the Seller shall provide
to the Purchaser as of the Closing Date a final schedule (the "Final Mortgage
Loan Schedule") setting forth the information listed on Exhibit 3 to this
Agreement with respect to each of the Mortgage Loans being sold by the Seller to
the Purchaser. The Final Mortgage Loan Schedule shall be delivered to the
Purchaser on the Closing Date, shall be attached to an amendment to this
Agreement to be executed on the Closing Date by the parties hereto and shall be
in form and substance mutually agreed to by the Seller and the Purchaser (the
"Amendment"). If there are no changes to the Preliminary Mortgage Loan Schedule,
the Preliminary Mortgage Loan Schedule shall be the Final Mortgage Loan Schedule
for all purposes hereof.

Section 4 Mortgage Loan Transfer.

          The Purchaser will be entitled to all scheduled payments of principal
and interest on the Mortgage Loans due after the Cut-off Date (regardless of
when actually collected) and all payments thereof other than scheduled principal
and interest received after the Cut-off Date. The Seller will be entitled to all
scheduled payments of principal and interest on the Mortgage Loans due on or
before the Cut-off Date (including payments collected after the Cut-off Date)
and all payments thereof other than scheduled principal and interest on the
Mortgage Loans received on or before the Cut-off Date. Such principal amounts
and any interest thereon belonging to the Seller as described above will not be
included in the aggregate outstanding principal balance of the Mortgage Loans as
of the Cut-off Date as set forth on the Final Mortgage Loan Schedule.

          Pursuant to various conveyancing documents to be executed on the
Closing Date and pursuant to the Pooling and Servicing Agreement, the Purchaser
will assign on the Closing Date all of its right, title and interest in and to
the Mortgage Loans to the Trustee for the benefit of the Certificateholders. In
connection with the transfer and assignment of the Mortgage Loans, the Seller
has delivered or will deliver or cause to be delivered to the Trustee by the
Closing Date or such later date as is agreed to by the Purchaser and the Seller
(each of the Closing Date and such later date is referred to as a "Mortgage File
Delivery Date"), the items of each Mortgage File, provided, however, that in
lieu of the foregoing, the Seller may deliver the following documents, under the
circumstances set forth below: (x) in lieu of the original Mortgage, assignments
to the Trustee or intervening assignments thereof which have been delivered, are
being delivered or will upon receipt of recording information relating to the
Mortgage required to be included thereon, be delivered to recording offices for
recording and have not been returned in time to permit their delivery as
specified above, the Seller may deliver a true copy thereof with a certification
by the Seller or the Originator, on the face of such copy, substantially as
follows:

                                      J-4

<PAGE>

"Certified to be a true and correct copy of the original, which has been
transmitted for recording;" (y) in lieu of the Mortgage, assignments to the
Trustee or intervening assignments thereof, if the applicable jurisdiction
retains the originals of such documents or if the originals are lost (in each
case, as evidenced by a certification from the Seller to such effect), the
Seller may deliver photocopies of such documents containing an original
certification by the judicial or other governmental authority of the
jurisdiction where such documents were recorded; and (z) in lieu of the Mortgage
Notes relating to the Mortgage Loans, each identified in the list delivered by
the Purchaser to the Trustee on the Closing Date and attached hereto as Exhibit
6 the Seller may deliver lost note affidavits and indemnities of the Seller; and
provided further, however, that in the case of Mortgage Loans which have been
prepaid in full after the Cut-off Date and prior to the Closing Date, the
Seller, in lieu of delivering the above documents, may deliver to the Trustee a
certification by the Seller to such effect. The Seller shall deliver such
original documents (including any original documents as to which certified
copies had previously been delivered) or such certified copies to the Trustee
promptly after they are received. The Seller shall cause the Mortgage and
intervening assignments, if any, and the assignment of the Mortgage to be
recorded not later than 180 days after the Closing Date, or, in lieu of such
assignments, shall provide an Opinion of Counsel pursuant to Section 6(a) hereof
to the effect that the recordation of such assignment is not necessary to
protect the Trustee's interest in the related Mortgage Loan. Upon the request of
the Purchaser, the Seller will assist the Purchaser in effecting the assignment
referred to above.

          The Seller and the Purchaser acknowledge hereunder that all of the
Mortgage Loans and the related servicing will ultimately be assigned to HSBC
Bank USA, National Association, as Trustee for the Certificateholders, on the
date hereof.

Section 5. Examination of Mortgage Files.

          (a) On or before the Mortgage File Delivery Date, the Seller will have
made the Mortgage Files available to the Purchaser or its agent for examination
which may be at the offices of the Trustee or the Seller and/or the Seller's
custodian. The fact that the Purchaser or its agent has conducted or has failed
to conduct any partial or complete examination of the Mortgage Files shall not
affect the Purchaser's rights to demand cure, repurchase, substitution or other
relief as provided in this Agreement. In furtherance of the foregoing, the
Seller shall make the Mortgage Files available to the Purchaser or its agent
from time to time so as to permit the Purchaser to confirm the Seller's
compliance with the delivery and recordation requirements of this Agreement and
the Pooling and Servicing Agreement. In addition, upon request of the Purchaser,
the Seller agrees to provide to the Purchaser, Merrill Lynch and to any
investors or prospective investors in the Certificates information regarding the
Mortgage Loans and their servicing, to make the Mortgage Files available to the
Purchaser, Merrill Lynch and to such investors or prospective investors (which
may be at the offices of the Seller and/or the Seller's custodian) and to make
available personnel knowledgeable about the Mortgage Loans for discussions with
the Purchaser, Merrill Lynch and such investors or prospective investors, upon
reasonable request during regular business hours, sufficient to permit the
Purchaser, Merrill Lynch and such investors or potential investors to conduct
such due diligence as any such party reasonably believes is appropriate.

                                      J-5

<PAGE>

          (b) Pursuant to the Pooling and Servicing Agreement, on the Closing
Date the Trustee (or the Custodian), for the benefit of the Certificateholders,
will review items of the Mortgage Files as set forth on Exhibit 1 and will
deliver to the Seller a certification in the form attached as Exhibit One to the
Custodial Agreement.

          (c) Pursuant to the Pooling and Servicing Agreement, the Trustee or
the Custodian, as its agent, will review the Mortgage Files within 180 days of
the Closing Date and will deliver to the Purchaser a final certification
substantially in the form of Exhibit Two to the Custodial Agreement. If the
Trustee or the Custodian, as its agent, is unable to deliver a final
certification with respect to the items listed in Exhibit 2 due to any document
that is missing, has not been executed, is unrelated, determined on the basis of
the Mortgagor name, original principal balance and loan number, to the Mortgage
Loans identified in the Final Mortgage Loan Schedule (a "Material Defect"), the
Trustee or the Custodian, as its agent, shall notify the Seller of such Material
Defect. The Seller shall correct or cure any such Material Defect within 90 days
from the date of notice from the Trustee or the Custodian, as applicable, of the
Material Defect and if the Seller does not correct or cure such Material Defect
within such period and such defect materially and adversely affects the
interests of the Certificateholders in the related Mortgage Loan, the Seller
will, in accordance with the terms of the Pooling and Servicing Agreement,
within 90 days of the date of notice, provide the Trustee with a Substitute
Mortgage Loan (if within two years of the Closing Date) or purchase the related
Mortgage Loan at the applicable Purchase Price; provided, however, that if such
defect relates solely to the inability of the Seller to deliver the original
security instrument or intervening assignments thereof, or a certified copy
because the originals of such documents, or a certified copy, have not been
returned by the applicable jurisdiction, the Seller shall not be required to
purchase such Mortgage Loan if the Seller delivers such original documents or
certified copy promptly upon receipt, but in no event later than 360 days after
the Closing Date. The foregoing repurchase obligation shall not apply in the
event that the Seller cannot deliver such original or copy of any document
submitted for recording to the appropriate recording office in the applicable
jurisdiction because such document has not been returned by such office;
provided that the Seller shall instead deliver a recording receipt of such
recording office or, if such receipt is not available, a certificate of the
Seller confirming that such documents have been accepted for recording, and
delivery to the Trustee or the Custodian, as its agent, shall be effected by the
Seller within thirty days of its receipt of the original recorded document.

          (d) At the time of any substitution, the Seller shall deliver or cause
to be delivered the Substitute Mortgage Loan, the related Mortgage File and any
other documents and payments required to be delivered in connection with a
substitution pursuant to the Pooling and Servicing Agreement. At the time of any
purchase or substitution, the Trustee shall (i) assign to the Seller and release
or cause the Custodian, as its agent, to release the documents (including, but
not limited to, the Mortgage, Mortgage Note and other contents of the Mortgage
File) in the possession of the Trustee or the Custodian relating to the Deleted
Mortgage Loan and (ii) execute and deliver such instruments of transfer or
assignment, in each case without recourse, as shall be necessary to vest in the
Seller title to such Deleted Mortgage Loan.

                                      J-6

<PAGE>

Section 6. Recordation of Assignments of Mortgage.

          (a) The Seller need not cause to be recorded any assignment which
relates to a Mortgage Loan in any jurisdiction; provided, however, each
assignment of Mortgage shall be submitted for recording by the Seller, at no
expense to the Issuing Entity or Trustee, upon the earliest to occur of (i)
reasonable direction by the Holders of Certificates evidencing, in the
aggregate, not less than 25% of the Voting Rights, (ii) the occurrence of an
Event of Default with respect to the Master Servicer (upon instruction of the
Seller), (iii) the occurrence of a bankruptcy, insolvency or foreclosure
relating to the Seller or (iv) with respect to any one assignment of Mortgage,
the occurrence of a bankruptcy, insolvency or foreclosure relating to the
Mortgagor under the related Mortgage.

          While each such Mortgage or assignment is being recorded, if
necessary, the Seller shall leave or cause to be left with the Trustee a
certified copy of such Mortgage or assignment. All customary recording fees and
reasonable expenses relating to the recordation of the assignments of mortgage
to the Trustee shall be borne by the Seller.

          It is the express intent of the parties hereto that the conveyance of
the Mortgage Loans by the Seller to the Purchaser, as contemplated by this
Agreement be, and be treated as, a sale. It is, further, not the intention of
the parties that such conveyance be deemed a pledge of the Mortgage Loans by the
Seller to the Purchaser to secure a debt or other obligation of the Seller.
However, in the event that, notwithstanding the intent of the parties, the
Mortgage Loans are held by a court of competent jurisdiction to continue to be
property of the Seller, then (i) this Agreement shall also be deemed to be a
security agreement within the meaning of Articles 8 and 9 of the applicable
Uniform Commercial Code; (ii) the transfer of the Mortgage Loans provided for
herein shall be deemed to be a grant by the Seller to the Purchaser of a
security interest in all of the Seller's right, title and interest in and to the
Mortgage Loans and all amounts payable to the holders of the Mortgage Loans in
accordance with the terms thereof and all proceeds of the conversion, voluntary
or involuntary, of the foregoing into cash, instruments, securities or other
property, to the extent the Purchaser would otherwise be entitled to own such
Mortgage Loans and proceeds pursuant to Section 4 hereof, including all amounts,
other than investment earnings, from time to time held or invested in any
accounts created pursuant to the Pooling and Servicing Agreement, whether in the
form of cash, instruments, securities or other property; (iii) the possession by
the Purchaser or the Trustee of Mortgage Notes and such other items of property
as constitute instruments, money, negotiable documents or chattel paper shall be
deemed to be "possession by the secured party" for purposes of perfecting the
security interest pursuant to Section 9-305 (or comparable provision) of the
applicable Uniform Commercial Code; and (iv) notifications to persons holding
such property, and acknowledgments, receipts or confirmations from persons
holding such property, shall be deemed notifications to, or acknowledgments,
receipts or confirmations from, financial intermediaries, bailees or agents (as
applicable) of the Purchaser for the purpose of perfecting such security
interest under applicable law. Any assignment of the interest of the Purchaser
pursuant to any provision hereof or pursuant to the Pooling and Servicing
Agreement 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 reasonably necessary to ensure
that, if this Agreement

                                      J-7

<PAGE>

were deemed to create a security interest in the Mortgage Loans, such security
interest would be deemed to be a perfected security interest of first priority
under applicable law and will be maintained as such throughout the term of the
Pooling and Servicing Agreement.

Section 7. Representations and Warranties of Seller Concerning the Mortgage
     Loans.

     The Seller hereby represents and warrants to the Purchaser as of the
Closing Date or such other date as may be specified below with respect to each
Mortgage Loan being sold by it:

          (a) the information set forth in the Mortgage Loan Schedule hereto is
     true and correct in all material respects;

          (b) immediately prior to the transfer to the Purchaser, the Seller was
     the sole owner of beneficial title and holder of each Mortgage and Mortgage
     Note relating to the Mortgage Loans and is conveying the same free and
     clear of any and all liens, claims, encumbrances, participation interests,
     equities, pledges, charges or security interests of any nature and the
     Seller has full right and authority to sell or assign the same pursuant to
     this Agreement;

          (c) no selection procedure reasonably believed by the Seller to be
     adverse to the interests of the Certificateholders was utilized in
     selecting the Mortgage Loans;

          (d) each Mortgage Loan constitutes a "qualified mortgage" under
     Section 860G(a)(3)(A) of the Code and Treasury Regulation Section
     1.860G-2(a)(1);

          (e) no Mortgage Loan is in foreclosure;

          (f) no Mortgage Loan provides for interest other than at either (i) a
     single fixed rate in effect throughout the term of the Mortgage Loan or
     (ii) a "variable rate" (within the meaning of Treas. Reg. Section
     1.860G-1(a)(3)) in effect throughout the term of the Mortgage Loan;

          (g) the Seller would not, based on the delinquency status of the
     Mortgage Loans, institute foreclosure proceedings with respect to any of
     the Mortgage Loans prior to the next scheduled payment for such Mortgage
     Loan;

          (h) the information set forth under the caption "Description of the
     Mortgage Pools--General" and "--Tabular Characteristics of the Mortgage
     Pool" in the Prospectus Supplement is true and correct in all material
     respects;

          (i) as of the Cut-off Date, no Mortgage Loan is more than 30 days past
     due. The Seller has not advanced funds, or induced, solicited or knowingly
     received any advance of funds from a party other than the owner of the
     related Mortgaged Property, directly or indirectly, for the payment of any
     amount required by the Mortgage Note or Mortgage;

                                      J-8

<PAGE>

          (j) to the best of the Seller's knowledge, there are no delinquent
     taxes, ground rents, water charges, sewer rents, assessments, insurance
     premiums, leasehold payments, including assessments payable in future
     installments or other outstanding charges affecting the related Mortgaged
     Property;

          (k) to the best of the Seller's knowledge, there is no default,
     breach, violation or event of acceleration existing under the Mortgage or
     the Mortgage Note and no event which, with the passage of time or with
     notice and the expiration of any grace or cure period, would constitute a
     default, breach, violation or event of acceleration, and the Seller has not
     waived any default, breach, violation or event of acceleration;

          (l) to the best of the Seller's knowledge, the Mortgaged Property is
     free of damage and waste and there is no proceeding pending for the total
     or partial condemnation thereof;

          (m) to the best of the Seller's knowledge, the Mortgaged Property is
     lawfully occupied under applicable law at time of origination; all
     inspections, licenses and certificates required to be made or issued with
     respect to all occupied portions of the Mortgaged Property and, with
     respect to the use and occupancy of the same, including but not limited to
     certificates of occupancy, have been made or obtained from the appropriate
     authorities;

          (n) all requirements of any federal, state or local law (including
     usury, truth in lending, real estate settlement procedures, consumer credit
     protection, equal credit opportunity, disclosure or recording, predatory
     and abusive lending laws) applicable to the origination and servicing of
     such Mortgage Loan have been complied with in all material respects;

          (o) to the best of the Seller's knowledge, as of the date of transfer
     of the Mortgage Loans, there is no mechanics' lien or claim for work, labor
     or material affecting the Mortgaged Property except those which are insured
     against by the title insurance policy;

          (p) to the best of the Seller's knowledge, as of the date of the
     transfer of the Mortgage Loans to the Purchaser, there is no valid offset,
     defense or counterclaim to any Mortgage Note or Mortgage;

          (q) to the best of the Seller's knowledge, as of the date of closing,
     the physical property subject to any mortgage is free of material damage
     and is in good repair;

          (r) at the time of origination, no improvement located on or being
     part of the Mortgaged Property was in violation of any applicable zoning
     and subdivision laws or ordinances;

          (s) each Mortgage Loan is and will be a mortgage loan arising out of
     the originator's practice in accordance with the seller/originator's
     underwriting guidelines.

                                      J-9

<PAGE>

     The seller has no knowledge of any fact that should have led it to expect
     at the time of the initial creation of an interest in the mortgage loan
     that such mortgage loan would not be paid in full when due;

          (t) each original mortgage has been recorded or is in the process of
     being recorded in the appropriate jurisdictions wherein such recordation is
     required to perfect the lien thereof for the benefit of the trust;

          (u) the related mortgage file contains each of the documents and
     instruments specified;

          (v) loans originated are being serviced according to the
     seller/servicer guidelines;

          (w) the mortgage note and the mortgage have not been impaired, altered
     or modified in any material respect, except by a written instrument which
     has been recorded or is in the process of being recorded;

          (x) a lender's title policy or binder, or other assurance of title
     insurance customary in a form acceptable to FNMA or FHLMC was issued at
     origination and each policy or binder is valid and remains in full force
     and effect;

          (y) none of the Mortgage Loans are secured by a leasehold interest;

          (z) none of the Mortgage Loans are subject to the Georgia Fair Lending
     Act, as amended;

          (aa) none of the Mortgage Loans is subject to the Home Ownership and
     Equity Protection Act of 1994 or is a "high cost" or "predatory" loan as
     defined by applicable local, state and federal predatory and abusive
     lending laws; and

          (bb) no Mortgage Loan is a High Cost Loan or Covered Loan, as
     applicable (as such terms are defined in Appendix E of the then current
     Standard & Poor's Glossary For File Format For LEVELS(R) Version 5.6d
     Revised (attached hereto as Exhibit 7).

          It is understood and agreed that the representations and warranties
set forth in this Section 7 will inure to the benefit of the Purchaser, its
successors and assigns, notwithstanding any restrictive or qualified endorsement
on any Mortgage Note or assignment of Mortgage or the examination of any
Mortgage File. Upon any substitution for a Mortgage Loan, the representations
and warranties set forth above shall be deemed to be made by the Seller as to
any Substitute Mortgage Loan as of the date of substitution.

          Upon discovery or receipt of notice by the Seller, the Purchaser or
the Trustee of a breach of any representation or warranty of the Seller set
forth in this Section 7 which materially and adversely affects the value of the
interests of the Purchaser, the Certificateholders or the Trustee in any of the
Mortgage Loans delivered to the Purchaser pursuant to this Agreement, the party
discovering or receiving notice of such breach shall give prompt written notice
to the

                                      J-10

<PAGE>

others. In the case of any such breach of a representation or warranty set forth
in this Section 7, within 90 days from the date of discovery by the Seller, or
the date the Seller is notified by the party discovering or receiving notice of
such breach (whichever occurs earlier), the Seller will (i) cure such breach in
all material respects, (ii) purchase the affected Mortgage Loan at the
applicable Purchase Price or (iii) if within two years of the Closing Date,
substitute a qualifying Substitute Mortgage Loan in exchange for such Mortgage
Loan. The obligations of the Seller to cure, purchase or substitute a qualifying
Substitute Mortgage Loan shall constitute the Purchaser's, the Trustee's and the
Certificateholder's sole and exclusive remedy under this Agreement or otherwise
respecting a breach of representations or warranties hereunder with respect to
the Mortgage Loans, except for the obligation of the Seller to indemnify the
Purchaser for such breach as set forth in and limited by Section 14 hereof. With
respect to the representations and warranties described in the Agreement which
are made to the best of the Seller's knowledge, if it is discovered by any of
the Depositor, the Seller or the Trustee that the substance of such
representation and warranty is inaccurate and such inaccuracy materially and
adversely affects the value of the related Mortgage Loan, then notwithstanding
the seller's lack of knowledge with respect to the substance of such
representation and warranty, such inaccuracy shall be deemed a breach of the
applicable representation or warranty.

          Any cause of action against the Seller or relating to or arising out
of a breach by the Seller of any representations and warranties made in this
Section 7 shall accrue as to any Mortgage Loan upon (i) discovery of such breach
by the Seller or notice thereof by the party discovering such breach and (ii)
failure by the Seller to cure such breach, purchase such Mortgage Loan or
substitute a qualifying Substitute Mortgage Loan pursuant to the terms hereof.

Section 8. Representations and Warranties Concerning the Seller.

     As of the date hereof and as of the Closing Date, the Seller represents and
warrants to the Purchaser as to itself in the capacity indicated as follows:

          (a) the Seller (i) is a corporation duly organized, validly existing
     and in good standing under the laws of the State of Delaware and (ii) is
     qualified and in good standing to do business in each jurisdiction where
     such qualification is necessary, except where the failure so to qualify
     would not reasonably be expected to have a material adverse effect on the
     Seller's business as presently conducted or on the Seller's ability to
     enter into this Agreement and to consummate the transactions contemplated
     hereby;

          (b) the Seller has full power to own its property, to carry on its
     business as presently conducted and to enter into and perform its
     obligations under this Agreement;

          (c) the execution and delivery by the Seller of this Agreement have
     been duly authorized by all necessary action on the part of the Seller; and
     neither the execution and delivery of this Agreement, nor the consummation
     of the transactions herein contemplated, nor compliance with the provisions
     hereof, will conflict with or result in a breach of, or constitute a
     default under, any of the provisions of any law, governmental rule,
     regulation, judgment, decree or order binding on the Seller or its
     properties or the charter or by-laws of the Seller, except those conflicts,
     breaches or defaults which would

                                      J-11

<PAGE>

     not reasonably be expected to have a material adverse effect on the
     Seller's ability to enter into this Agreement and to consummate the
     transactions contemplated hereby;

          (d) the execution, delivery and performance by the Seller of this
     Agreement and the consummation of the transactions contemplated hereby do
     not require the consent or approval of, the giving of notice to, the
     registration with, or the taking of any other action in respect of, any
     state, federal or other governmental authority or agency, except those
     consents, approvals, notices, registrations or other actions as have
     already been obtained, given or made and, in connection with the
     recordation of the Mortgages, powers of attorney or assignments of
     Mortgages not yet completed;

          (e) this Agreement has been duly executed and delivered by the Seller
     and, assuming due authorization, execution and delivery by the Purchaser,
     constitutes a valid and binding obligation of the Seller enforceable
     against it in accordance with its terms (subject to applicable bankruptcy
     and insolvency laws and other similar laws affecting the enforcement of the
     rights of creditors generally);

          (f) there are no actions, suits or proceedings pending or, to the
     knowledge of the Seller, threatened against the Seller, before or by any
     court, administrative agency, arbitrator or governmental body (i) with
     respect to any of the transactions contemplated by this Agreement or (ii)
     with respect to any other matter which in the judgment of the Seller will
     be determined adversely to the Seller and will if determined adversely to
     the Seller materially and adversely affect the Seller's ability to perform
     its obligations under this Agreement; and the Seller is not in default with
     respect to any order of any court, administrative agency, arbitrator or
     governmental body so as to materially and adversely affect the transactions
     contemplated by this Agreement; and

          (g) the Seller's Information (as defined in Section 13(a) hereof) does
     not include any untrue statement of a material fact or omit to state a
     material fact necessary in order to make the statements made, in light of
     the circumstances under which they were made, not misleading.

Section 9.Representations and Warranties Concerning the Purchaser.

          As of the date hereof and as of the Closing Date, the Purchaser
represents and warrants to the Seller as follows:

          (a) the Purchaser (i) is a corporation duly organized, validly
     existing and in good standing under the laws of the State of Delaware and
     (ii) is qualified and in good standing as a foreign corporation to do
     business in each jurisdiction where such qualification is necessary, except
     where the failure so to qualify would not reasonably be expected to have a
     material adverse effect on the Purchaser's business as presently conducted
     or on the Purchaser's ability to enter into this Agreement and to
     consummate the transactions contemplated hereby;

          (b) the Purchaser has full corporate power to own its property, to
     carry on its

                                      J-12

<PAGE>

     business as presently conducted and to enter into and perform its
     obligations under this Agreement;

          (c) the execution and delivery by the Purchaser of this Agreement have
     been duly authorized by all necessary corporate action on the part of the
     Purchaser; and neither the execution and delivery of this Agreement, nor
     the consummation of the transactions herein contemplated, nor compliance
     with the provisions hereof, will conflict with or result in a breach of, or
     constitute a default under, any of the provisions of any law, governmental
     rule, regulation, judgment, decree or order binding on the Purchaser or its
     properties or the articles of incorporation or by-laws of the Purchaser,
     except those conflicts, breaches or defaults which would not reasonably be
     expected to have a material adverse effect on the Purchaser's ability to
     enter into this Agreement and to consummate the transactions contemplated
     hereby;

          (d) the execution, delivery and performance by the Purchaser of this
     Agreement and the consummation of the transactions contemplated hereby do
     not require the consent or approval of, the giving of notice to, the
     registration with, or the taking of any other action in respect of, any
     state, federal or other governmental authority or agency, except those
     consents, approvals, notices, registrations or other actions as have
     already been obtained, given or made;

          (e) this Agreement has been duly executed and delivered by the
     Purchaser and, assuming due authorization, execution and delivery by the
     Seller, constitutes a valid and binding obligation of the Purchaser
     enforceable against it in accordance with its terms (subject to applicable
     bankruptcy and insolvency laws and other similar laws affecting the
     enforcement of the rights of creditors generally);

          (f) there are no actions, suits or proceedings pending or, to the
     knowledge of the Purchaser, threatened against the Purchaser, before or by
     any court, administrative agency, arbitrator or governmental body (i) with
     respect to any of the transactions contemplated by this Agreement or (ii)
     with respect to any other matter which in the judgment of the Purchaser
     will be determined adversely to the Purchaser and will if determined
     adversely to the Purchaser materially and adversely affect the Purchaser's
     ability to perform its obligations under this Agreement; and the Purchaser
     is not in default with respect to any order of any court, administrative
     agency, arbitrator or governmental body so as to materially and adversely
     affect the transactions contemplated by this Agreement; and

          (g) the Purchaser's Information (as defined in Section 13(b) hereof)
     does not include any untrue statement of a material fact or omit to state a
     material fact necessary in order to make the statements made, in light of
     the circumstances under which they were made, not misleading.

                                      J-13

<PAGE>

Section 10. Conditions to Closing.

          (a) The obligations of the Purchaser under this Agreement will be
     subject to the satisfaction, on or prior to the Closing Date, of the
     following conditions:

               (i) Each of the obligations of the Seller required to be
performed at or prior to the Closing Date pursuant to the terms of this
Agreement shall have been duly performed and complied with in all material
respects; all of the representations and warranties of the Seller under this
Agreement shall be true and correct as of the date or dates specified in all
material respects; and no event shall have occurred which, with notice or the
passage of time, would constitute a default under this Agreement, or the Pooling
and Servicing Agreement; and the Purchaser shall have received certificates to
that effect signed by authorized officers of the Seller.

               (ii) The Purchaser shall have received all of the following
closing documents, in such forms as are agreed upon and reasonably acceptable to
the Purchaser, duly executed by all signatories other than the Purchaser as
required pursuant to the respective terms thereof:

                    (A) If required pursuant to Section 3 hereof, the Amendment
     dated as of the Closing Date and any documents referred to therein;

                    (B) If required pursuant to Section 3 hereof, the Final
     Mortgage Loan Schedule containing the information set forth on Exhibit 3
     hereto, one copy to be attached to each counterpart of the Amendment;

                    (C) The Pooling and Servicing Agreement, in form and
     substance reasonably satisfactory to the Trustee and the Purchaser, and all
     documents required thereby duly executed by all signatories;

                    (D) A certificate of an officer of the Seller dated as of
     the Closing Date, in a form reasonably acceptable to the Purchaser, and
     attached thereto the resolutions of the Seller's authorizing the
     transactions contemplated by this Agreement, together with copies of the
     charter and by-laws of the Seller;

                    (E) One or more opinions of counsel from the Seller's
     counsel otherwise in form and substance reasonably satisfactory to the
     Purchaser, the Trustee and each Rating Agency;

                    (F) A letter from each of the Rating Agencies giving each
     Class of Certificates set forth on Schedule A the rating set forth on
     Schedule A; and

                    (G) Such other documents, certificates (including additional
     representations and warranties) and opinions as may be reasonably necessary
     to secure the intended ratings from each Rating Agency for the
     Certificates.

                                      J-14

<PAGE>

               (iii) The Certificates to be sold to Merrill Lynch pursuant to
the Underwriting Agreement shall have been issued and sold to Merrill Lynch.

               (iv) The Seller shall have furnished to the Purchaser such other
certificates of its officers or others and such other documents and opinions of
counsel to evidence fulfillment of the conditions set forth in this Agreement
and the transactions contemplated hereby as the Purchaser and its counsel may
reasonably request.

          The obligations of the Seller under this Agreement shall be subject to
     the satisfaction, on or prior to the Closing Date, of the following
     conditions:

               (i) The obligations of the Purchaser required to be performed by
it on or prior to the Closing Date pursuant to the terms of this Agreement shall
have been duly performed and complied with in all material respects, and all of
the representations and warranties of the Purchaser under this Agreement shall
be true and correct in all material respects as of the date hereof and as of the
Closing Date, and no event shall have occurred which would constitute a breach
by it of the terms of this Agreement, and the Seller shall have received a
certificate to that effect signed by an authorized officer of the Purchaser.

               (ii) The Seller shall have received copies of all of the
following closing documents, in such forms as are agreed upon and reasonably
acceptable to the Seller, duly executed by all signatories other than the Seller
as required pursuant to the respective terms thereof:

                    (A) If required pursuant to Section 3 hereof, the Amendment
     dated as of the Closing Date and any documents referred to therein;

                    (B) The Pooling and Servicing Agreement, in form and
     substance reasonably satisfactory to the Seller, and all documents required
     thereby duly executed by all signatories;

                    (C) A certificate of an officer of the Purchaser dated as of
     the Closing Date, in a form reasonably acceptable to the Seller, and
     attached thereto the resolutions of the Purchaser authorizing the
     transactions contemplated by this Agreement and the Pooling and Servicing
     Agreement, together with copies of the Purchaser's articles of
     incorporation, and evidence as to the good standing of the Purchaser dated
     as of a recent date;

                    (D) One or more opinions of counsel from the Purchaser's
     counsel in form and substance reasonably satisfactory to the Seller; and

                    (E) Such other documents, certificates (including additional
     representations and warranties) and opinions as may be reasonably necessary
     to secure the intended rating from each Rating Agency for the Certificates;

                                      J-15

<PAGE>

Section 11. Fees and Expenses.

          Subject to Section 17 hereof, the Seller shall pay on the Closing Date
or such later date as may be agreed to by the Purchaser (i) the fees and
expenses of the Seller's attorneys and the reasonable fees and expenses of the
Purchaser's attorneys, (ii) the fees and expenses of Deloitte & Touche LLP,
(iii) the filing fee charged by the Commission for the registration of the
Certificates, (iv) the fees and expenses including counsel's fees and expenses
in connection with any "blue sky" and legal investment matters, (v) the fees and
expenses of the Trustee which shall include without limitation the fees and
expenses of the Trustee (and the fees and disbursements of its counsel) with
respect to (A) legal and document review of this Agreement, the Pooling and
Servicing Agreement, the Certificates and related agreements, (B) attendance at
the Closing and (C) review of the Mortgage Loans to be performed by the Trustee,
(vi) the expenses for printing or otherwise reproducing the Certificates, the
Prospectus and the Prospectus Supplement, (vii) the fees and expenses of each
Rating Agency (both initial and ongoing), (viii) the fees and expenses relating
to the preparation and recordation of mortgage assignments (including
intervening assignments, if any and if available, to evidence a complete chain
of title from the originator to the Trustee) from the Seller to the Trustee or
the expenses relating to the Opinion of Counsel referred to in Section 6(a)
hereof, as the case may be, and (ix) Mortgage File due diligence expenses and
other out-of-pocket expenses incurred by the Purchaser in connection with the
purchase of the Mortgage Loans and by Merrill Lynch in connection with the sale
of the Offered Certificates. The Seller additionally agrees to pay directly to
any third party on a timely basis the fees provided for above which are charged
by such third party and which are billed periodically.

Section 12. Accountants' Letters

          Deloitte & Touche LLP will review the characteristics of a sample of
the Mortgage Loans described in the Final Mortgage Loan Schedule and will
compare those characteristics to the description of the Mortgage Loans contained
in the Prospectus Supplement under the captions "Summary--The Mortgage Loans",
"Description of the Mortgage Pools--General", "--Tabular Characteristics of the
Mortgage Loans" and "Annex II--The Mortgage Pool". The Seller will cooperate
with the Purchaser in making available all information and taking all steps
reasonably necessary to permit such accountants to complete the review and to
deliver the letters required of them under the Underwriting Agreement. Deloitte
& Touche LLP will also confirm certain calculations as set forth under the
caption "Yield, Prepayment and Weighted Average Life" in the Prospectus
Supplement.

Section 13. Indemnification.

          (a) The Seller shall indemnify and hold harmless the Purchaser and its
     directors, officers and controlling persons (as defined in Section 15 of
     the Securities Act) from and against any loss, claim, damage or liability
     or action in respect thereof, to which they or any of them may become
     subject, under the Securities Act or otherwise, insofar as such loss,
     claim, damage, liability or action arises out of, or is based upon (i) any
     untrue statement of a material fact contained in the Seller's Information
     as identified in Exhibit 4, the omission to state in the Prospectus
     Supplement or Prospectus (or any amendment

                                      J-16

<PAGE>

     thereof or supplement thereto approved by the Seller and in which
     additional Seller's Information is identified), in reliance upon and in
     conformity with Seller's Information a material fact required to be stated
     therein or necessary to make the statements therein in light of the
     circumstances in which they were made, not misleading, (ii) any
     representation or warranty assigned or made by the Seller in Section 7 or
     Section 8 hereof being, or alleged to be, untrue or incorrect, or (iii) any
     failure by the Seller to perform its obligations under this Agreement; and
     the Seller shall reimburse the Purchaser and each other indemnified party
     for any legal and other expenses reasonably incurred by them in connection
     with investigating or defending or preparing to defend against any such
     loss, claim, damage, liability or action.

          The Seller shall indemnify and hold harmless the Purchaser, the Trust
     Fund and the Trustee against any documented out-of-pocket losses,
     penalties, fines, forfeitures, reasonable and necessary legal fees and
     related costs, judgments, and other costs and expenses resulting from any
     claim, demand, defense or assertion by any third party that results from, a
     material breach of the representations and warranties set forth in Section
     7 of this Agreement; provided, however, indemnification shall not be
     available for any economic losses of the Purchaser due to reinvestment
     losses, loss of investment income or any other special, indirect or
     consequential losses. The Seller shall indemnify and hold harmless the
     Purchaser, the Trust Fund and the Trustee against any losses, penalties,
     fines, forfeitures, reasonable and necessary legal fees and related costs,
     judgments, and other costs and expenses resulting from any claim, demand,
     defense or assertion by any third party in connection with the Georgia Fair
     Lending Act; provided, however, indemnification shall not be available for
     any economic losses of the Purchaser due to reinvestment losses, loss of
     investment income or any other special, indirect or consequential losses.

     The foregoing indemnity agreement is in addition to any liability which the
Seller otherwise may have to the Purchaser or any other such indemnified party.

          The Purchaser shall indemnify and hold harmless the Seller and its
     respective directors, officers and controlling persons (as defined in
     Section 15 of the Securities Act) from and against any loss, claim, damage
     or liability or action in respect thereof, to which they or any of them may
     become subject, under the Securities Act or otherwise, insofar as such
     loss, claim, damage, liability or action arises out of, or is based upon
     (i) any untrue statement of a material fact contained in the Purchaser's
     Information as identified in Exhibit 5, the omission to state in the
     Prospectus Supplement or Prospectus (or any amendment thereof or supplement
     thereto approved by the Purchaser and in which additional Purchaser's
     Information is identified), in reliance upon and in conformity with the
     Purchaser's Information, a material fact required to be stated therein or
     necessary to make the statements therein in light of the circumstances in
     which they were made, not misleading, (ii) any representation or warranty
     made by the Purchaser in Section 9 hereof being, or alleged to be, untrue
     or incorrect, or (iii) any failure by the Purchaser to perform its
     obligations under this Agreement; and the Purchaser shall reimburse the
     Seller, and each other indemnified party for any legal and other expenses
     reasonably incurred by

                                      J-17

<PAGE>

     them in connection with investigating or defending or preparing to defend
     any such loss, claim, damage, liability or action. The foregoing indemnity
     agreement is in addition to any liability which the Purchaser otherwise may
     have to the Seller, or any other such indemnified party,

          Promptly after receipt by an indemnified party under subsection (a) or
     (b) above of notice of the commencement of any action, such indemnified
     party shall, if a claim in respect thereof is to be made against the
     indemnifying party under such subsection, notify each party against whom
     indemnification is to be sought in writing of the commencement thereof (but
     the failure so to notify an indemnifying party shall not relieve it from
     any liability which it may have under this Section 13 except to the extent
     that it has been prejudiced in any material respect by such failure or from
     any liability which it may have otherwise). In case any such action is
     brought against any indemnified party, and it notifies an indemnifying
     party of the commencement thereof, the indemnifying party will be entitled
     to participate therein and, to the extent it may elect by written notice
     delivered to the indemnified party promptly (but, in any event, within 30
     days) after receiving the aforesaid notice from such indemnified party, to
     assume the defense thereof with counsel reasonably satisfactory to such
     indemnified party. Notwithstanding the foregoing, the indemnified party or
     parties shall have the right to employ its or their own counsel in any such
     case, but the fees and expenses of such counsel shall be at the expense of
     such indemnified party or parties unless (i) the employment of such counsel
     shall have been authorized in writing by one of the indemnifying parties in
     connection with the defense of such action, (ii) the indemnifying parties
     shall not have employed counsel to have charge of the defense of such
     action within a reasonable time after notice of commencement of the action,
     or (iii) such indemnified party or parties shall have reasonably concluded
     that there is a conflict of interest between itself or themselves and the
     indemnifying party in the conduct of the defense of any claim or that the
     interests of the indemnified party or parties are not substantially
     co-extensive with those of the indemnifying party (in which case the
     indemnifying parties shall not have the right to direct the defense of such
     action on behalf of the indemnified party or parties), in any of which
     events such fees and expenses shall be borne by the indemnifying parties
     (provided, however, that the indemnifying party shall be liable only for
     the fees and expenses of one counsel in addition to one local counsel in
     the jurisdiction involved. Anything in this subsection to the contrary
     notwithstanding, an indemnifying party shall not be liable for any
     settlement or any claim or action effected without its written consent;
     provided, however, that such consent was not unreasonably withheld.

          If the indemnification provided for in paragraphs (a) and (b) of this
     Section 13 shall for any reason be unavailable to an indemnified party in
     respect of any loss, claim, damage or liability, or any action in respect
     thereof, referred to in Section 13, then the indemnifying party shall in
     lieu of indemnifying the indemnified party contribute to the amount paid or
     payable by such indemnified party as a result of such loss, claim, damage
     or liability, or action in respect thereof, in such proportion as shall be
     appropriate to reflect the relative benefits received by the Seller on the
     one hand and the Purchaser on the other from the purchase and sale of the
     Mortgage Loans, the offering of the

                                      J-18

<PAGE>

     Certificates and the other transactions contemplated hereunder. No person
     found liable for a fraudulent misrepresentation shall be entitled to
     contribution from any person who is not also found liable for such
     fraudulent misrepresentation.

          The parties hereto agree that reliance by an indemnified party on any
     publicly available information or any information or directions furnished
     by an indemnifying party shall not constitute negligence, bad faith or
     willful misconduct by such indemnified party.

Section 14. Notices.

          All demands, notices and communications hereunder shall be in writing
but may be delivered by facsimile transmission subsequently confirmed in
writing. Notices to the Seller shall be directed to Merrill Lynch Mortgage
Lending Inc., 4 World Financial Center, New York, New York 10281 (Telecopy:
212-449-6710), and notices to the Purchaser shall be directed to Merrill Lynch
Mortgage Investors, Inc., 4 World Financial Center, New York, New York 10281
(Telecopy: 212-449-6710), Attention: Brian Brennan; or to any other address as
may hereafter be furnished by one party to the other party by like notice. Any
such demand, notice or communication hereunder shall be deemed to have been
received on the date received at the premises of the addressee (as evidenced, in
the case of registered or certified mail, by the date noted on the return
receipt) provided that it is received on a business day during normal business
hours and, if received after normal business hours, then it shall be deemed to
be received on the next business day.

Section 15. Transfer of Mortgage Loans.

          The Purchaser retains the right to assign the Mortgage Loans and any
or all of its interest under this Agreement to the Trustee without the consent
of the Seller, and, upon such assignment, the Trustee shall succeed to the
applicable rights and obligations of the Purchaser hereunder; provided, however,
the Purchaser shall remain entitled to the benefits set forth in Sections 11, 13
and 17 hereto and as provided in Section 2(a). Notwithstanding the foregoing,
the sole and exclusive right and remedy of the Trustee with respect to a breach
of representation or warranty of the Seller shall be the purchase or
substitution obligations of the Seller contained in Sections 5 and 7 hereof.

Section 16. Termination.

          This Agreement may be terminated (a) by the mutual consent of the
parties hereto prior to the Closing Date, (b) by the Purchaser, if the
conditions to the Purchaser's obligation to close set forth under Section 10(a)
hereof are not fulfilled as and when required to be fulfilled or (c) by the
Seller, if the conditions to the Seller's obligation to close set forth under
Section 10(b) hereof are not fulfilled as and when required to be fulfilled. In
the event of termination pursuant to clause (b), the Seller shall pay, and in
the event of termination pursuant to clause (c), the Purchaser shall pay, all
reasonable out-of-pocket expenses incurred by the other in connection with the
transactions contemplated by this Agreement. In the event of a termination
pursuant to clause (a), each party shall be responsible for its own expenses.

                                      J-19

<PAGE>

Section 17. Representations, Warranties and Agreements to Survive Delivery.

          All representations, warranties and agreements contained in this
Agreement, or contained in certificates of officers of the Seller submitted
pursuant hereto, shall remain operative and in full force and effect and shall
survive delivery of the Mortgage Loans to the Purchaser (and by the Purchaser to
the Trustee). Subsequent to the delivery of the Mortgage Loans to the Purchaser,
the Seller's representations and warranties contained herein with respect to the
Mortgage Loans shall be deemed to relate to the Mortgage Loans actually
delivered to the Purchaser and included in the Final Mortgage Loan Schedule and
any Substitute Mortgage Loan and not to those Mortgage Loans deleted from the
Preliminary Mortgage Loan Schedule pursuant to Section 3 hereof prior to the
Closing.

Section 18. Mandatory Delivery; Grant of Security Interest.

          The sale and delivery on the Closing Date of the Mortgage Loans
described on the Mortgage Loan 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
obligation to deliver or cause to be delivered the consideration for the
Mortgage Loans pursuant to Section 2 hereof. The Seller agrees that, upon
acceptance of the Mortgage Loans by the Purchaser or its designee and delivery
of payment to the Seller, that its security interest in the Mortgage Loans shall
be released. All rights and remedies of the Purchaser under this Agreement are
distinct from, and cumulative with, any other rights or remedies under this
Agreement or afforded by law or equity and all such rights and remedies may be
exercised concurrently, independently or successively.

          Notwithstanding the foregoing, if on the Closing Date, each of the
conditions set forth in Section 10 hereof shall have been satisfied and the
Purchaser shall not have paid or caused to be paid the purchase price as
described in Section 2(c) hereof, 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 18 shall be deemed to have been released.

Section 19. Severability.

          Any part, provision, representation or warranty of this Agreement
which is prohibited or which 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 which is prohibited or
unenforceable or

                                      J-20

<PAGE>

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 20. Counterparts.

          This Agreement may be executed in counterparts, each of which will be
an original, but which together shall constitute one and the same agreement.

Section 21. Amendment.

          This Agreement cannot be amended or modified in any manner without the
prior written consent of each party.

Section 22. GOVERNING LAW.

          THIS AGREEMENT SHALL BE DEEMED TO HAVE BEEN MADE AND PERFORMED IN THE
STATE OF NEW YORK AND SHALL BE INTERPRETED IN ACCORDANCE WITH THE LAWS OF SUCH
STATE, WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES OF SUCH STATE.

Section 23. Further Assurances.

          Each of the parties agrees to execute and deliver such instruments and
take such actions as another party may, from time to time, reasonably request in
order to effectuate the purpose and to carry out the terms of this Agreement
including any amendments hereto which may be required by either Rating Agency.

Section 24. Successors and Assigns.

          This Agreement shall bind and inure to the benefit of and be
enforceable by the Seller and the Purchaser and their permitted successors and
assigns and, to the extent specified in Section 13 hereof, Merrill Lynch, and
their directors, officers and controlling persons (within the meaning of federal
securities laws). The Seller acknowledges and agrees that the Purchaser may
assign its rights under this Agreement (including, without limitation, with
respect to the Seller's representations and warranties respecting the Mortgage
Loans) to the Trustee. Any person into which the Seller may be merged or
consolidated (or any person resulting from any merger or consolidation involving
the Seller), any person resulting from a change in form of the Seller or any
person succeeding to the business of the Seller, shall be considered the
"successor" of the Seller hereunder and shall be considered a party hereto
without the execution or filing of any paper or any further act or consent on
the part of any party hereto. Except as provided in the two preceding sentences,
this Agreement cannot be assigned, pledged or hypothecated by either party

                                      J-21

<PAGE>

hereto without the written consent of the other parties to this Agreement and
any such assignment or purported assignment shall be deemed null and void.

Section 25. The Seller.

          The Seller will keep in full effect all rights as are necessary to
perform their respective obligations under this Agreement.

Section 26. Entire Agreement.

          This Agreement contains the entire agreement and understanding between
the parties with respect to the subject matter hereof, and supersedes all prior
and contemporaneous agreements, understandings, inducements and conditions,
express or implied, oral or written, of any nature whatsoever with respect to
the subject matter hereof.

Section 27. No Partnership.

          Nothing herein contained shall be deemed or construed to create a
partnership or joint venture between the parties hereto.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                      J-22

<PAGE>

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

                                        MERRILL LYNCH MORTGAGE LENDING, INC.

                                        By:
                                            ------------------------------------
                                        Name: Brian Brennan
                                        Title: Authorized Signatory

                                        MERRILL LYNCH MORTGAGE INVESTORS, INC.

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                                      J-23

<PAGE>

                  EXHIBIT 1 TO MORTGAGE LOAN PURCHASE AGREEMENT

                            CONTENTS OF MORTGAGE FILE

     With respect to each Mortgage Loan, the Mortgage File shall include each of
the following items, which shall be available for inspection by the Purchaser or
its designee, and which shall be delivered to the Purchaser or its designee
pursuant to the terms of the Agreement.

A.   With respect to each Mortgage Loan (other than a Cooperative Loan):

          (i) the original Mortgage Note, endorsed in the following form: "Pay
     to the order of HSBC Bank USA, National Association, as Trustee for the
     registered holders of the Merrill Lynch Mortgage Investors, Inc., Mortgage
     Pass-Through Certificates, Series 2006-A3, without recourse," 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 recorded Mortgage or a copy of the Mortgage
     certified by the public recording office in which such Mortgage has been
     recorded;

          (iii) an original Assignment of the Mortgage executed in the following
     form: "HSBC Bank USA, National Association, as Trustee for the registered
     holders of the Merrill Lynch Mortgage Investors, Inc., Mortgage
     Pass-Through Certificates, Series 2006-A3.

          (iv) the original recorded Assignment or Assignments of the Mortgage
     showing a complete chain of assignment from the originator to the Person
     assigning the Mortgage to the Trustee as contemplated by the immediately
     preceding clause (iii), if applicable and only to the extent available to
     the Depositor with evidence of recording thereon;

          (v) the originals of all assumption, modification, consolidation or
     extension agreements, with evidence of recording thereon, if any;

          (vi) the original of any guarantee executed in connection with the
     Mortgage Note;

          (vii) the original mortgagee title insurance policy;

          (viii) the original of any security agreement, chattel mortgage or
     equivalent document executed in connection with the Mortgage; and

          (ix) the original power of attorney, if applicable.

B.   With respect to each Mortgage Loan that is a Cooperative Loan:

          (i) the original Mortgage Note, endorsed in the following form: "Pay
     to the order of HSBC Bank USA, National Association, as Trustee for the
     registered holders of the

                                      J-24

<PAGE>

     Merrill Lynch Mortgage Investors, Inc., Mortgage Pass-Through Certificates,
     Series 2006-A3, without recourse," 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 duly executed assignment of Security Agreement to
     the Trustee;

          (iii) the acknowledgment copy of the original executed Form UCC-1 (or
     certified copy thereof) with respect to the Security Agreement, and any
     required continuation statements;

          (iv) the acknowledgment copy of the original executed Form UCC-3 with
     respect to the Security Agreement, indicating the Trustee as the assignee
     of the secured party;

          (v) the stock certificate representing the Cooperative Assets
     allocated to the cooperative unit, with a stock power in blank attached;

          (vi) the original collateral assignment of the proprietary lease by
     Mortgagor to the originator;

          (vii) a copy of the recognition agreement;

          (viii) if applicable and to the extent available, the original
     intervening assignments, including warehousing assignments, if any,
     showing, to the extent available, an unbroken chain of the related Mortgage
     Loan to the Trustee, together with a copy of the related Form UCC-3 with
     evidence of filing thereon; and

          (ix) the originals of each assumption, modification or substitution
     agreement, if any, relating to the Mortgage Loan.

                                      J-25

<PAGE>

                  EXHIBIT 2 TO MORTGAGE LOAN PURCHASE AGREEMENT

                         CONTENTS OF FINAL MORTGAGE FILE

          With respect to each Mortgage Loan, the Mortgage File shall include
     each of the following items, which shall be available for inspection by the
     Purchaser or its agent, and which shall be delivered to the Purchaser
     pursuant to the terms of the Agreement.

A.   With respect to each Mortgage Loan (other than a Cooperative Loan):

          (i) the original Mortgage Note, endorsed in the following form: "Pay
     to the order of HSBC Bank USA, National Association, as Trustee for the
     registered holders of the Merrill Lynch Mortgage Investors, Inc., Mortgage
     Pass-Through Certificates, Series 2006-A3, without recourse," 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 recorded Mortgage or a copy of the Mortgage
     certified by the public recording office in which such Mortgage has been
     recorded;

          (iii) an original Assignment of the Mortgage executed in the following
     form: "HSBC Bank USA, National Association, as Trustee for the registered
     holders of the Merrill Lynch Mortgage Investors, Inc., Mortgage
     Pass-Through Certificates, Series 2006-A3.

          (iv) the original recorded Assignment or Assignments of the Mortgage
     showing a complete chain of assignment from the originator to the Person
     assigning the Mortgage to the Trustee as contemplated by the immediately
     preceding clause (iii), if applicable and only to the extent available to
     the Depositor with evidence of recording thereon;

          (v) the originals of all assumption, modification, consolidation or
     extension agreements, with evidence of recording thereon, if any;

          (vi) the original of any guarantee executed in connection with the
     Mortgage Note;

          (vii) the original mortgagee title insurance policy;

          (viii) the original of any security agreement, chattel mortgage or
     equivalent document executed in connection with the Mortgage; and

          (ix) the original power of attorney, if applicable.

B.   With respect to each Mortgage Loan that is a Cooperative Loan:

          (i) the original Mortgage Note, endorsed in the following form: "Pay
     to the

                                      J-26

<PAGE>

     order of HSBC Bank USA, National Association, as Trustee for the registered
     holders of the Merrill Lynch Mortgage Investors, Inc., Mortgage
     Pass-Through Certificates, Series 2006-A3, without recourse," 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 duly executed assignment of Security Agreement to
     the Trustee;

          (iii) the acknowledgment copy of the original executed Form UCC-1 (or
     certified copy thereof) with respect to the Security Agreement, and any
     required continuation statements;

          (iv) the acknowledgment copy of the original executed Form UCC-3 with
     respect to the Security Agreement, indicating the Trustee as the assignee
     of the secured party;

          (v) the stock certificate representing the Cooperative Assets
     allocated to the cooperative unit, with a stock power in blank attached;

          (vi) the original collateral assignment of the proprietary lease by
     Mortgagor to the originator;

          (vii) a copy of the recognition agreement;

          (viii) if applicable and to the extent available, the original
     intervening assignments, including warehousing assignments, if any,
     showing, to the extent available, an unbroken chain of the related Mortgage
     Loan to the Trustee, together with a copy of the related Form UCC-3 with
     evidence of filing thereon; and

          (ix) the originals of each assumption, modification or substitution
     agreement, if any, relating to the Mortgage Loan.

                                      J-27

<PAGE>

                  EXHIBIT 3 TO MORTGAGE LOAN PURCHASE AGREEMENT

                       MORTGAGE LOAN SCHEDULE INFORMATION

     The Preliminary and Final Mortgage Loan Schedules shall set forth the
following information with respect to each Mortgage Loan:

          1)   the loan number of the mortgage loan;

          2)   the city, state and zip code of the Mortgage Property;

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

          4)   the type of Residential Dwelling constituting the Mortgaged
               Property;

          5)   the original months to maturity;

          6)   the original date of the mortgage;

          7)   the Loan-to-Value Ratio at origination;

          8)   the Mortgage Rate;

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

          10)  the stated maturity date;

          11)  the amount of the Monthly Payment at origination;

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

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

          14)  the original principal amount of the Mortgage Loan;

          15)  the Stated Principal Balance of the Mortgage Loan as of the close
               of business on the Cut-off Date;

          16)  a code indicating the purpose of the Mortgage Loan (i.e.,
               purchase financing, Rate/Term Refinancing, Cash-Out Refinancing);

          17)  a code indicating the documentation style (i.e., full,
               alternative or reduced);

          18)  the Value of the Mortgaged Property;

                                      J-28

<PAGE>

          19)  the sale price of the Mortgaged Property, if applicable;

          20)  the actual unpaid principal balance of the Mortgage Loan as of
               the Cut-off Date;

          21)  the Servicing Fee;

          22)  with respect to each adjustable-rate Mortgage Loan, the next
               Interest Rate Adjustment Date;

          23)  with respect to each adjustable-rate Mortgage Loan, the Gross
               Margin;

          24)  with respect to each adjustable-rate Mortgage Loan, the Minimum
               and Maximum Mortgage Rate under the terms of the Mortgage Note;

          25)  with respect to each adjustable-rate Mortgage Loan, the First
               Rate Cap;

          26)  with respect to each adjustable-rate Mortgage Loan, the related
               Periodic Rate Cap;

          27)  with respect to each adjustable-rate Mortgage Loan, whether
               additional collateral exists;

          28)  with respect to each adjustable-rate Mortgage Loan, whether it is
               interest-only; and

          29)  with respect to each adjustable-rate Mortgage Loan, the Seller.

          Such 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.

                                      J-29

<PAGE>

                  EXHIBIT 4 TO MORTGAGE LOAN PURCHASE AGREEMENT

                              SELLER'S INFORMATION

          All information in the Prospectus Supplement described under the
following Sections: "Summary -- The Mortgage Loans," "Description of the
Mortgage Pools" and "Annex II -- The Mortgage Pool".

                                      J-30

<PAGE>

                  EXHIBIT 5 TO MORTGAGE LOAN PURCHASE AGREEMENT

                             PURCHASER'S INFORMATION

          All information in the Prospectus Supplement and the Prospectus,
except the Seller's Information.

                                      J-31

<PAGE>

                  EXHIBIT 6 TO MORTGAGE LOAN PURCHASE AGREEMENT

                             SCHEDULE OF LOST NOTES

                             Available Upon Request

                                      J-32
<PAGE>

                 EXHIBIT 7 TO MORTGAGE LOAN PURCHASE AGREEMENT

                                                       REVISED February 07, 2005

APPENDIX E - Standard & Poor's Anti-Predatory Lending Categorization

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

<TABLE>
<CAPTION>
                                        Name of Anti-Predatory                 Category under Applicable
   State/Jurisdiction                 Lending Law/Effective Date               Anti-Predatory Lending Law
   ------------------                 --------------------------               --------------------------
<S>                        <C>                                                <C>
Arkansas                   Arkansas Home Loan Protection Act, Ark. Code       High Cost Home Loan
                           Ann. Sections 23-53-101 et seq.

                           Effective July 16, 2003

Cleveland Heights, OH      Ordinance No. 72-2003 (PSH), Mun. Code             Covered Loan
                           Sections 757.01 et seq.

                           Effective June 2, 2003

Colorado                   Consumer Equity Protection, Colo. Stat. Ann.       Covered Loan
                           Sections 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

Connecticut                Connecticut Abusive Home Loan Lending Practices    High Cost Home Loan
                           Act, Conn. Gen. Stat. Sections 36a-746 et seq.

                           Effective October 1, 2001

District of Columbia       Home Loan Protection Act, D.C. Code Sections       Covered Loan
                           26-1151.01 et seq.

                           Effective for loans closed on or after
                           January 28, 2003

Florida                    Fair Lending Act, Fla. Stat. Ann. Sections         High Cost Home Loan
</TABLE>

                                      J-33

<PAGE>

STANDARD & POOR'S HIGH COST LOAN CATEGORIZATION

<TABLE>
<CAPTION>
                                        Name of Anti-Predatory                 Category under Applicable
   State/Jurisdiction                 Lending Law/Effective Date               Anti-Predatory Lending Law
   ------------------                 --------------------------               --------------------------
<S>                        <C>                                                <C>
                           494.0078 et seq.

                           Effective October 2, 2002

Georgia (Oct. 1, 2002 -    Georgia Fair Lending Act, Ga. Code Ann. Sections   High Cost Home Loan
Mar. 6, 2003)              7-6A-1 et seq.

                           Effective October 1, 2002 - March 6, 2003

Georgia as amended         Georgia Fair Lending Act, Ga. Code Ann. Sections   High Cost Home Loan
(Mar. 7, 2003 - current)   7-6A-1 et seq.

                           Effective for loans closed on or after
                           March 7, 2003

HOEPA Section 32           Home Ownership and Equity Protection Act of        High Cost Loan
                           1994, 15 U.S.C. Section 1639, 12 C.F.R.
                           Sections 226.32 and 226.34

                           Effective October 1, 1995, amendments
                           October 1, 2002

Illinois                   High Risk Home Loan Act, Ill. Comp. Stat. tit.     High Risk Home Loan
                           815, Sections 137/5 et seq.

                           Effective January 1, 2004 (prior to this date,
                           regulations under Residential Mortgage License
                           Act effective from May 14, 2001)

Indiana                    Indiana Home Loan Practices Act, Ind. Code Ann.    High Cost Home Loan
                           Sections 24-9-1-1 et seq.

                           Effective for loans originated on or after
                           January 1, 2005.

Kansas                     Consumer Credit Code, Kan. Stat. Ann. Sections     High Loan to Value Consumer
                           16a-1-101 et seq.                                  Loan (id. Section
                                                                              16a-3-207) and;
                           Sections 16a-1-301 and 16a-3-207 became
                           effective April 14, 1999; Section 16a-3-308a       High APR Consumer Loan (id.
                           became effective July 1, 1999                      Section 16a-3-308a)

Kentucky                   2003 KY H.B. 287 - High Cost Home Loan Act, Ky.    High Cost Home Loan
                           Rev. Stat. Sections 360.100 et
</TABLE>

                                      J-34

<PAGE>

STANDARD & POOR'S HIGH COST LOAN CATEGORIZATION

<TABLE>
<CAPTION>
                                        Name of Anti-Predatory                 Category under Applicable
   State/Jurisdiction                 Lending Law/Effective Date               Anti-Predatory Lending Law
   ------------------                 --------------------------               --------------------------
<S>                        <C>                                                <C>
                           seq.

                           Effective June 24, 2003

Maine                      Truth in Lending, Me. Rev. Stat. tit. 9-A,         High Rate High Fee Mortgage
                           Sections 8-101 et seq.

                           Effective September 29, 1995 and as amended
                           from time to time

Massachusetts              Part 40 and Part 32, 209 C.M.R. Sections 32.00     High Cost Home Loan
                           et seq. and 209 C.M.R. Sections 40.01 et seq.

                           Effective March 22, 2001 and amended from time
                           to time

                           Massachusetts Predatory Home Loan Practices Act    High Cost Home Mortgage Loan
                           Mass. Gen. Laws ch. 183C, Sections 1 et seq.

                           Effective November 7, 2004

Nevada                     Assembly Bill No. 284, Nev. Rev. Stat. Sections    Home Loan
                           598D.010 et seq.

                           Effective October 1, 2003

New Jersey                 New Jersey Home Ownership Security Act of 2002,    High Cost Home Loan
                           N.J. Rev. Stat. Sections 46:10B-22 et seq.

                           Effective for loans closed on or after November
                           27, 2003

New Mexico                 Home Loan Protection Act, N.M. Rev. Stat.          High Cost Home Loan
                           Sections 58-21A-1 et seq.

                           Effective as of January 1, 2004; Revised as of
                           February 26, 2004

New York                   N.Y. Banking Law Article 6-1                       High Cost Home Loan

                           Effective for applications made on or after
                           April 1, 2003

North Carolina             Restrictions and Limitations on High Cost Home     High Cost Home Loan
                           Loans, N.C. Gen. Stat. Sections 24-1.1E et seq.
</TABLE>

                                      J-35

<PAGE>

STANDARD & POOR'S HIGH COST LOAN CATEGORIZATION

<TABLE>
<CAPTION>
                                        Name of Anti-Predatory                 Category under Applicable
   State/Jurisdiction                 Lending Law/Effective Date               Anti-Predatory Lending Law
   ------------------                 --------------------------               --------------------------
<S>                        <C>                                                <C>
                           Effective July 1, 2000; amended October 1, 2003
                           (adding open-end lines of credit)

Ohio                       H.B. 386 (codified in various sections of the      Covered Loan
                           Ohio Code), Ohio Rev. Code Ann. Sections 1349.25
                           et seq.

                           Effective May 24, 2002

Oklahoma                   Consumer Credit Code (codified in various          Subsection 10 Mortgage
                           sections of Title 14A)

                           Effective July 1, 2000; amended effective
                           January 1, 2004

South Carolina             South Carolina High Cost and Consumer Home         High Cost Home Loan
                           Loans Act, S.C. Code Ann. Sections 37-23-10 et
                           seq.

                           Effective for loans taken on or after
                           January 1, 2004

West Virginia              West Virginia Residential Mortgage Lender,         West Virginia Mortgage Loan
                           Broker and Servicer Act, W. Va. Code Ann.          Act Loan
                           Sections 31-17-1 et seq.

                           Effective June 5, 2002
</TABLE>

STANDARD & POOR'S COVERED LOAN CATEGORIZATION

<TABLE>
<CAPTION>
                                        Name of Anti-Predatory                 Category under Applicable
   State/Jurisdiction                 Lending Law/Effective Date               Anti-Predatory Lending Law
   ------------------                 --------------------------               --------------------------
<S>                        <C>                                                <C>
Georgia (Oct. 1, 2002 -    Georgia Fair Lending Act, Ga. Code Ann. Sections   Covered Loan
Mar. 6, 2003)              7-6A-1 et seq.

                           Effective October 1, 2002 - March 6, 2003

New Jersey                 New Jersey Home Ownership Security Act of 2002,    Covered Home Loan
                           N.J. Rev. Stat. Sections 46:10B-22 et seq.
</TABLE>

                                      J-36

<PAGE>

<TABLE>
<S>                        <C>                                                <C>
                           Effective November 27, 2003 - July 5, 2004
</TABLE>

STANDARD & POOR'S HOME LOAN CATEGORIZATION

<TABLE>
<CAPTION>
                                        Name of Anti-Predatory                 Category under Applicable
   State/Jurisdiction                 Lending Law/Effective Date               Anti-Predatory Lending Law
   ------------------                 --------------------------               --------------------------
<S>                        <C>                                                <C>
Georgia (Oct. 1, 2002 -    Georgia Fair Lending Act, Ga. Code Ann. Sections   Home Loan
Mar. 6, 2003)              7-6A-1 et seq.

                           Effective October 1, 2002 - March 6, 2003

New Jersey                 New Jersey Home Ownership Security Act of 2002,    Home Loan
                           N.J. Rev. Stat. Sections 46:10B-22 et seq.

                           Effective for loans closed on or after
                           November 27, 2003

New Mexico                 Home Loan Protection Act, N.M. Rev. Stat.          Home Loan
                           Sections 58-21A-1 et seq.

                           Effective as of January 1, 2004; Revised as of
                           February 26, 2004

North Carolina             Restrictions and Limitations on High Cost Home     Consumer Home Loan
                           Loans, N.C. Gen. Stat. Sections 24-1.1E et seq.

                           Effective July 1, 2000; amended October 1, 2003
                           (adding open-end lines of credit)

South Carolina             South Carolina High Cost and Consumer Home         Consumer Home Loan
                           Loans Act, S.C. Code Ann. Sections 37-23-10 et
                           seq.

                           Effective for loans taken on or after
                           January 1, 2004
</TABLE>

                                      J-37

<PAGE>

                 SCHEDULE A TO MORTGAGE LOAN PURCHASE AGREEMENT

                 REQUIRED RATINGS FOR EACH CLASS OF CERTIFICATES

                              Offered Certificates

<TABLE>
<CAPTION>
    Class       Moody's   S&P
    -----       -------   ---
<S>             <C>       <C>
Class I-A         Aaa     AAA
Class II-A-1      Aaa     AAA
Class II-A-2      Aaa     AAA
Class III-A-1     Aaa     AAA
Class III-A-2     Aaa     AAA
Class IV-A-1      Aaa     AAA
Class IV-A-2      Aaa     AAA
Class V-A-1       Aaa     AAA
Class V-A-2       Aaa     AAA
Class VI-A-1      Aaa     AAA
Class VI-A-2      Aaa     AAA
Class A-R         N/R     AAA
Class M-1         Aa2     AA
Class M-2          A2      A
Class M-3         Baa2    BBB
</TABLE>

None of the above ratings has been lowered since the respective dates of such
letters.

                                      J-38
<PAGE>

                                    EXHIBIT K

                       SERVICING CRITERIA TO BE ADDRESSED
                           IN ASSESSMENT OF COMPLIANCE
                          (RMBS UNLESS OTHERWISE NOTED)

KEY: X - obligation

WHERE THERE ARE MULTIPLE CHECKS FOR CRITERIA THE ATTESTING PARTY WILL IDENTIFY
IN ITS MANAGEMENT ASSERTION THAT IT IS ATTESTING ONLY TO THE PORTION OF THE
DISTRIBUTION CHAIN IT IS RESPONSIBLE FOR IN THE RELATED TRANSACTION AGREEMENTS.
CAPITALIZED TERMS USED HEREIN BUT NOT DEFINED HEREIN SHALL HAVE THE MEANINGS
ASSIGNED TO THEM IN THE POOLING AND SERVICING AGREEMENT, DATED AS OF MAY 1,
2006, AMONG MERRILL LYNCH MORTGAGE INVESTORS, INC., AS DEPOSITOR, WELLS FARGO
BANK, N.A., AS MASTER SERVICER AND SECURITIES ADMINISTRATOR, AND HSBC BANK USA,
NATIONAL ASSOCIATION, AS TRUSTEE.

<TABLE>
<CAPTION>
REG AB REFERENCE             SERVICING CRITERIA             SECURITIES ADMINISTRATOR   MASTER SERVICER
----------------   --------------------------------------   ------------------------   ---------------
<S>                <C>                                      <C>                        <C>
                   GENERAL SERVICING CONSIDERATIONS

1122(d)(1)(i)      Policies and procedures are instituted               X                     X
                   to monitor any performance or other
                   triggers and events of default in
                   accordance with the transaction
                   agreements.

1122(d)(1)(ii)     If any material servicing activities                 X                     X
                   are outsourced to third parties,
                   policies and procedures are instituted
                   to monitor the third party's
                   performance and compliance with such
                   servicing activities.

1122(d)(1)(iii)    Any requirements in the transaction                 N/A                   N/A
                   agreements to maintain a back-up
                   servicer for the Pool Assets are
                   maintained.

1122(d)(1)(iv)     A fidelity bond and errors and                                             X
                   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.

                   CASH COLLECTION AND ADMINISTRATION

1122(d)(2)(i)      Payments on pool assets are deposited                X                     X
                   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.

1122(d)(2)(ii)     Disbursements made via wire transfer                 X                     X
                   on behalf of an obligor or to an
                   investor are made only by authorized
                   personnel.

1122(d)(2)(iii)    Advances of funds or guarantees                                            X
                   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.

1122(d)(2)(iv)     The related accounts for the                         X                     X
                   transaction, such as cash reserve
                   accounts or accounts established as a
                   form of over collateralization, are
                   separately maintained (e.g., with
                   respect to commingling of cash) as set
                   forth in the transaction agreements.
</TABLE>

                                      K-1

<PAGE>

<TABLE>
<CAPTION>
REG AB REFERENCE             SERVICING CRITERIA             SECURITIES ADMINISTRATOR   MASTER SERVICER
----------------   --------------------------------------   ------------------------   ---------------
<S>                <C>                                      <C>                        <C>
1122(d)(2)(v)      Each custodial account is maintained                 X                     X
                   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.

1122(d)(2)(vi)     Unissued checks are safeguarded so as
                   to prevent unauthorized access.

1122(d)(2)(vii)    Reconciliations are prepared on a                    X                     X
                   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.

                   INVESTOR REMITTANCES AND REPORTING

1122(d)(3)(i)      Reports to investors, including those                X                     X
                   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 Pool Assets serviced by
                   the Servicer.

1122(d)(3)(ii)     Amounts due to investors are allocated               X                     X
                   and remitted in accordance with
                   timeframes, distribution priority and
                   other terms set forth in the
                   transaction agreements.

1122(d)(3)(iii)    Disbursements made to an investor are                X                     X
                   posted within two business days to the
                   Servicer's investor records, or such
                   other number of days specified in the
                   transaction agreements.

1122(d)(3)(iv)     Amounts remitted to investors per the                X                     X
                   investor reports agree with cancelled
                   checks, or other form of payment, or
                   custodial bank statements.

                   POOL ASSET ADMINISTRATION

1122(d)(4)(i)      Collateral or security on pool assets
                   is maintained as required by the
                   transaction agreements or related pool
                   asset documents.

1122(d)(4)(ii)     Pool assets and related documents are
                   safeguarded as required by the
                   transaction agreements

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.
</TABLE>

                                       K-2

<PAGE>

<TABLE>
<CAPTION>
REG AB REFERENCE             SERVICING CRITERIA             SECURITIES ADMINISTRATOR   MASTER SERVICER
----------------   --------------------------------------   ------------------------   ---------------
<S>                <C>                                      <C>                        <C>
1122(d)(4)(iv)     Payments on pool assets, including any
                   payoffs, made in accordance with the
                   related pool asset 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 pool asset documents.

1122(d)(4)(v)      The Servicer's records regarding the
                   pool assets agree with the Servicer's
                   records with respect to an obligor's
                   unpaid principal balance.

1122(d)(4)(vi)     Changes with respect to the terms or
                   status of an obligor's pool assets
                   (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.

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.

1122(d)(4)(viii)   Records documenting collection efforts
                   are maintained during the period a
                   pool asset 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
                   pool assets including, for example,
                   phone calls, letters and payment
                   rescheduling plans in cases where
                   delinquency is deemed temporary (e.g.,
                   illness or unemployment).

1122(d)(4)(ix)     Adjustments to interest rates or rates
                   of return for pool assets with
                   variable rates are computed based on
                   the related pool asset documents.

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 pool
                   asset 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 pool asset documents
                   and state laws; and (C) such funds are
                   returned to the obligor within 30
                   calendar days of full repayment of the
                   related pool assets, or such other
                   number of days specified in the
                   transaction agreements.

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.

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.
</TABLE>

                                       K-3

<PAGE>

<TABLE>
<CAPTION>
REG AB REFERENCE             SERVICING CRITERIA             SECURITIES ADMINISTRATOR   MASTER SERVICER
----------------   --------------------------------------   ------------------------   ---------------
<S>                <C>                                      <C>                        <C>
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.

1122(d)(4)(xiv)    Delinquencies, charge-offs and                                             X
                   uncollectible accounts are recognized
                   and recorded in accordance with the
                   transaction agreements.

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.
</TABLE>

                                       K-4

<PAGE>

                                    EXHIBIT L

                          SARBANES-OXLEY CERTIFICATION

                                     [DATE]

Merrill Lynch Mortgage Investors, Inc.
250 Vesey Street
4 World Financial Center, 10th Floor
New York, New York 10080

Wells Fargo Bank, N.A.
9062 Old Annapolis Road
Columbia, MD 21045

Re: Merrill Lynch Mortgage Investors Trust, Series 2006-A3

I, [identify the certifying individual], certify that:

1. I have reviewed the report on Form 10-K and all reports on Form 10-D required
to be filed in respect of the period covered by this report on Form 10-K of
Merrill Lynch Mortgage Investors Trust, Series 2006-A3 (the "Exchange Act
periodic reports");

2. Based on my knowledge, the Exchange Act periodic reports, taken as a whole,
do not contain any untrue statement of a material fact or omit to state a
material fact necessary to make the statements made, in light of the
circumstances under which such statements were made, not misleading with respect
to the period covered by this report;

3. Based on my knowledge, all of the distribution, servicing and other
information required to be provided under Form 10-D for the period covered by
this report is included in the Exchange Act periodic reports;

4. [I am responsible for reviewing the activities performed by the servicer(s)
and based on my knowledge and the compliance review(s) conducted in preparing
the servicer compliance statement(s) required in this report under Item 1123 of
Regulation AB, and except as disclosed in the Exchange Act periodic reports, the
servicer(s) [has/have] fulfilled [its/their] obligations under the servicing
agreement(s) in all material respects; and]

5. All of the reports on assessment of compliance with servicing criteria for
ABS and their related attestation reports on assessment of compliance with
servicing criteria for asset-backed securities required to be included in this
report in accordance with Item 1122 of Regulation AB and Exchange Act Rules
13a-18 and 15d-18 have been included as an exhibit to this report, except as
otherwise disclosed in this report. Any material instances of noncompliance
described in such reports have been disclosed in this report on Form 10-K.

                                      L-1

<PAGE>

[In giving the certifications above, I have reasonably relied on information
provided to me by the following unaffiliated parties [name of servicer,
sub-servicer, co-servicer, depositor or trustee].]

Date:
      -------------------------------

                                        ----------------------------------------
                                        [Signature]
                                        [Title]
                                                --------------------------------

                                      L-2

<PAGE>

                                    EXHIBIT M

                  FORM OF BACK-UP SARBANES-OXLEY CERTIFICATION

Merrill Lynch Mortgage Investors, Inc.
250 Vesey Street
4 World Financial Center, 10th Floor
New York, New York 10080

Wells Fargo Bank, N.A.
9062 Old Annapolis Road
Columbia, MD 21045

Re: Merrill Lynch Mortgage Investors Trust, Series 2006-A3

[_______], the [_______] of [_______] (the "Company") hereby certifies to the
Depositor, the Master Servicer and the Securities Administrator, and each of
their officers, directors and affiliates that:

(1) I have reviewed [the servicer compliance statement of the Company provided
in accordance with Item 1123 of Regulation AB (the "Compliance Statement"),] the
report on assessment of the Company's compliance with the Servicing Criteria set
forth in Item 1122(d) of Regulation AB (the "Servicing Criteria"), provided in
accordance with Rules 13a-18 and 15d-18 under the Securities Exchange Act of
1934, as amended (the "Exchange Act") and Item 1122 of Regulation AB (the
"Servicing Assessment"), the registered public accounting firm's attestation
report provided in accordance with Rules 13a-18 and 15d-18 under the Exchange
Act and Section 1122(b) of Regulation AB (the "Attestation Report"), and all
servicing reports, officer's certificates and other information relating to the
servicing of the Mortgage Loans by the Company during 200[_] that were delivered
by the Company to any of the Depositor, the Master Servicer and the Trustee
pursuant to the Agreement (collectively, the "Company Servicing Information");

(2) Based on my knowledge, the Company Servicing Information, taken as a whole,
does not contain any untrue statement of a material fact or omit to state a
material fact necessary to make the statements made, in the light of the
circumstances under which such statements were made, not misleading with respect
to the period of time covered by the Company Servicing Information;

(3) Based on my knowledge, all of the Company Servicing Information required to
be provided by the Company under the Agreement has been provided to the
Depositor, the Master Servicer and the Securities Administrator;

(4) I am responsible for reviewing the activities performed by [_______] as
[_______] under the [_______] (the "Agreement"), and based on my knowledge [and
the compliance review conducted in preparing the Compliance Statement] and
except as disclosed in [the Compliance Statement,] the Servicing Assessment or
the Attestation Report, the Company has fulfilled its obligations under the
Agreement in all material respects; and

                                       M-1

<PAGE>

(5) [The Compliance Statement required to be delivered by the Company pursuant
to the Agreement, and] [The] [the] Servicing Assessment and Attestation Report
required to be provided by the Company and [by any Subservicer or Subcontractor]
pursuant to the Agreement, have been provided to the Depositor, the Master
Servicer and the Securities Administrator. Any material instances of
noncompliance described in such reports have been disclosed to the Depositor,
the Master Servicer and the Securities Administrator. Any material instance of
noncompliance with the Servicing Criteria has been disclosed in such reports.

Capitalized terms used but not defined herein have the meanings ascribed to them
in the Pooling and Servicing Agreement, dated as of May 1, 2006, among Merrill
Lynch Mortgage Investors, Inc., as depositor (the "Depositor"), Wells Fargo
Bank, N.A., as master servicer (in such capacity, the "Master Servicer") and
securities administrator (in such capacity, the "Securities Administrator") and
HSBC Bank USA, National Association, as trustee (the "Trustee").

                                        [_____]
                                        as [_____]

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------
                                        Date:
                                              ----------------------------------

                                       M-2

<PAGE>

                                    EXHIBIT N

                                   [RESERVED]

                                       N-1

<PAGE>

                                    EXHIBIT O

                       ADDITIONAL DISCLOSURE NOTIFICATION

Merrill Lynch Mortgage Investors, Inc.
250 Vesey Street
4 World Financial Center, 10th Floor
New York, New York 10080

Wells Fargo Bank, N.A.
9062 Old Annapolis Road
Columbia, MD 21045

RE: Merrill Lynch Mortgage Investors Trust, Series 2006-A3
    **Additional Form [10-D][10-K][8-K] Disclosure** Required

Ladies and Gentlemen:

In accordance with Section 3.18(b) of the Pooling and Servicing Agreement, dated
as of May 1, 2006, among Merrill Lynch Mortgage Investors, Inc., as depositor,
Wells Fargo Bank, N.A., as master servicer and securities administrator and HSBC
Bank USA, National Association, as trustee, the undersigned, as [___], hereby
notifies you that certain events have come to our attention that [will] [may]
need to be disclosed on Form [10-D][10-K][8-K].

Description of Additional Form [10-D][10-K][8-K] Disclosure:

List of any Attachments hereto to be included in the Additional Form
[10-D][10-K][8-K] Disclosure:

     Any inquiries related to this notification should be directed to [_____],
phone number: [_____]; email address: [_____].

                                        [NAME OF PARTY],
                                        as [role]

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                                       O-1

<PAGE>

                                    EXHIBIT P

                   FORM OF ITEM 1123 CERTIFICATION OF SERVICER

                                     [DATE]

Merrill Lynch Mortgage Investors, Inc.
250 Vesey Street
4 World Financial Center, 10th Floor
New York, New York 10080

Wells Fargo Bank, N.A.
9062 Old Annapolis Road
Columbia, MD 21045

Re: Merrill Lynch Mortgage Investors Trust, Series 2006-A3 Mortgage Pass-Through
    Certificates

I, [identify name of certifying individual], [title of certifying individual] of
[name of servicing company] (the "Servicer"), hereby certify that:

(1) A review of the activities of the Servicer during the preceding calendar
year and of the performance of the Servicer under the [related servicing
agreement] (the "Servicing Agreement") has been made under my supervision; and

(2) To the best of my knowledge, based on such review, the Servicer has
fulfilled all its obligations under the related Servicing Agreement in all
material respects throughout such year or a portion thereof[, or, if there has
been a failure to fulfill any such obligation in any material respect, I have
specified below each such failure known to me and the nature and status
thereof].

Date:
      -------------------------------

                                        [Servicer]

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                                       P-1
<PAGE>

                                   EXHIBIT Q-1

                         ADDITIONAL FORM 10-D DISCLOSURE

                         ADDITIONAL FORM 10-D DISCLOSURE

<TABLE>
<CAPTION>
          ITEM ON FORM 10-D                         PARTY RESPONSIBLE
          -----------------                         -----------------
<S>                                     <C>
    ITEM 1: DISTRIBUTION AND POOL
       PERFORMANCE INFORMATION

     Information included in the                     Master Servicer
         [Monthly Statement]                            Servicer
                                                Securities Administrator

   Any information required by 1121                     Depositor
    which is NOT included on the
         [Monthly Statement]

      ITEM 2: LEGAL PROCEEDINGS

Any legal proceeding pending against
the following entities or their
respective property, that is material
to Certificateholders, including any
proceeding known to be contemplated
by governmental authorities:

-    Issuing Entity (Trust Fund)          Trustee, Master Servicer, Securities
                                               Administrator and Depositor

-    Sponsor (Seller)                     Seller (if a party to the Pooling and
                                            Servicing Agreement) or Depositor

-    Depositor                                          Depositor

-    Trustee                                             Trustee

-    Securities Administrator                   Securities Administrator

-    Master Servicer                                 Master Servicer

-    Custodian                                          Custodian

-    1110(b) Originator                                 Depositor

-    Any 1108(a)(2) Servicer (other                     Servicer
     than the Master Servicer or
     Securities Administrator)

-    Any other party contemplated by                    Depositor
     1100(d)(1)

    ITEM 3: SALE OF SECURITIES AND                       Depositor
           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.
</TABLE>

                                      Q-1-1

<PAGE>

                         ADDITIONAL FORM 10-D DISCLOSURE

<TABLE>
<CAPTION>
          ITEM ON FORM 10-D                         PARTY RESPONSIBLE
          -----------------                         -----------------
<S>                                     <C>
     ITEM 4: DEFAULTS UPON SENIOR           Securities Administrator Trustee
             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)

  ITEM 5: SUBMISSION OF MATTERS TO A        Securities Administrator Trustee
      VOTE OF SECURITY HOLDERS

Information from Item 4 of Part II of
Form 10-Q

 ITEM 6: SIGNIFICANT OBLIGORS OF POOL                   Depositor
               ASSETS

Item 1112(b) - Significant Obligor
Financial Information*

*    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.

   ITEM 7: SIGNIFICANT ENHANCEMENT
        PROVIDER INFORMATION

Item 1114(b)(2) - Credit Enhancement
Provider Financial Information*

-    Determining applicable                             Depositor
     disclosure threshold

-    Requesting required financial                      Depositor
     information (including any
     required accountants' consent to
     the use thereof) or effecting
     incorporation by reference

      Item 1115(b) - Derivative
 Counterparty Financial Information*

-    Determining current maximum                        Depositor
     probable exposure

-    Determining current significance                   Depositor
     percentage

-    Requesting required financial                      Depositor
     information (including any
     required accountants' consent to
     the use thereof) or effecting
     incorporation by reference

*    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.
</TABLE>

<PAGE>

                         ADDITIONAL FORM 10-D DISCLOSURE

<TABLE>
<CAPTION>
          ITEM ON FORM 10-D                         PARTY RESPONSIBLE
          -----------------                         -----------------
<S>                                     <C>
      ITEM 8: OTHER INFORMATION         Any party responsible for the applicable
                                                Form 8-K Disclosure item

Disclose any information required to
be reported on Form 8-K during the
period covered by the Form 10-D but
not reported

           ITEM 9: EXHIBITS

         Monthly Statement to                   Securities Administrator
         Certificateholders

  Exhibits required by Item 601 of                      Depositor
  Regulation S-K, such as material
             agreements
</TABLE>

<PAGE>

                                   EXHIBIT Q-2

                         ADDITIONAL FORM 10-K DISCLOSURE

                         ADDITIONAL FORM 10-K DISCLOSURE

<TABLE>
<CAPTION>
          ITEM ON FORM 10-K                         PARTY RESPONSIBLE
          -----------------                         -----------------
<S>                                       <C>
  ITEM 1B: UNRESOLVED STAFF COMMENTS                    Depositor

      ITEM 9B: OTHER INFORMATION          Any party responsible for disclosure
                                                   items on Form 8-K

Disclose any information required to
be reported on Form 8-K during the
fourth quarter covered by the Form
10-K but not reported

     ITEM 15: EXHIBITS, FINANCIAL          Securities Administrator Depositor
         STATEMENT SCHEDULES

  REG AB ITEM 1112(B): SIGNIFICANT
       OBLIGORS OF POOL ASSETS

Significant Obligor Financial
Information*                                            Depositor

*    This information need only be
     reported on the Form 10-K if
     updated information is required
     pursuant to the Item.

    REG AB ITEM 1114(B)(2): CREDIT
   ENHANCEMENT PROVIDER FINANCIAL
             INFORMATION

-    Determining applicable                             Depositor
     disclosure threshold

-    Requesting required financial                      Depositor
     information (including any
     required accountants' consent to
     the use thereof) or effecting
     incorporation by reference

*    This information need only be
     reported on the Form 10-K if
     updated information is required
     pursuant to the Item.

   REG AB ITEM 1115(B): DERIVATIVE
 COUNTERPARTY FINANCIAL INFORMATION

-    Determining current maximum                        Depositor
     probable exposure

-    Determining current significance                   Depositor
     percentage

-    Requesting required financial                      Depositor
     information (including any
     required accountants' consent to
     the use thereof) or effecting
     incorporation by reference

*    This information need only be
     reported on the Form 10-K if
     updated information is required
     pursuant to the Item.

 REG AB ITEM 1117: LEGAL PROCEEDINGS

Any legal proceeding pending against
the following entities or their
respective property, that is material
to Certificateholders, including any
proceeding known to be contemplated
by
</TABLE>

<PAGE>

                         ADDITIONAL FORM 10-K DISCLOSURE

<TABLE>
<CAPTION>
          ITEM ON FORM 10-K                         PARTY RESPONSIBLE
          -----------------                         -----------------
<S>                                      <C>
governmental authorities:

-    Issuing Entity (Trust Fund)          Trustee, Master Servicer, Securities
                                               Administrator and Depositor

-    Sponsor (Seller)                    Seller (if a party to the Pooling and
                                            Servicing Agreement) or Depositor

-    Depositor                                          Depositor

-    Trustee                                             Trustee

-    Securities Administrator                   Securities Administrator

-    Master Servicer                                 Master Servicer

-    Custodian                                          Custodian

-    1110(b) Originator                                 Depositor

-    Any 1108(a)(2) Servicer (other                     Servicer
     than the Master Servicer or
     Securities Administrator)

-    Any other party contemplated by                    Depositor
     1100(d)(1)

  REG AB ITEM 1119: AFFILIATIONS AND
            RELATIONSHIPS

Whether (a) the Sponsor (Seller),                  Depositor as to (a)
Depositor or Issuing Entity is an               Sponsor/Seller as to (a)
affiliate of the following parties,
and (b) to the extent known and
material, any of the following
parties are affiliated with one
another:

-    Master Servicer                                Master Servicer

-    Securities Administrator                   Securities Administrator

-    Trustee                                             Trustee

-    Any other 1108(a)(3) servicer                      Servicer

-    Any 1110 Originator                            Depositor/Sponsor

-    Any 1112(b) Significant Obligor                Depositor/Sponsor

-    Any 1114 Credit Enhancement                    Depositor/Sponsor
     Provider

-    Any 1115 Derivate Counterparty                Depositor/Sponsor
     Provider

-    Any other 1101(d)(1) material                 Depositor/Sponsor
     party

Whether there are any "outside the                 Depositor as to (a)
ordinary course business                        Sponsor/Seller as to (a)
arrangements" other than would be
obtained in an arm's length
transaction between (a) the Sponsor
(Seller), Depositor or Issuing Entity
on the one hand, and (b) any of the
following parties (or their
affiliates) on the other hand, that
exist currently or within the past
two years and that are material to a
Certificateholder's understanding of
the Certificates:

-    Master Servicer                                 Master Servicer

-    Securities Administrator                   Securities Administrator

-    Trustee                                            Depositor

-    Any other 1108(a)(3) servicer                      Servicer

-    Any 1110 Originator                            Depositor/Sponsor

-    Any 1112(b) Significant Obligor                Depositor/Sponsor

-    Any 1114 Credit Enhancement                    Depositor/Sponsor
     Provider
</TABLE>

<PAGE>

                         ADDITIONAL FORM 10-K DISCLOSURE

<TABLE>
<CAPTION>
          ITEM ON FORM 10-K                         PARTY RESPONSIBLE
          -----------------                         -----------------
<S>                                     <C>
-    Any 1115 Derivate Counterparty                 Depositor/Sponsor
     Provider

-    Any other 1101(d)(1) material                  Depositor/Sponsor
     party

Whether there are any specific                     Depositor as to (a)
relationships involving the                     Sponsor/Seller as to (a)
transaction or the pool assets
between (a) the Sponsor (Seller),
Depositor or Issuing Entity on the
one hand, and (b) any of the
following parties (or their
affiliates) on the other hand, that
exist currently or within the past
two years and that are material:

-    Master Servicer                                 Master Servicer

-    Securities Administrator                   Securities Administrator

-    Trustee                                            Depositor

-    Any other 1108(a)(3) servicer                      Servicer

-    Any 1110 Originator                            Depositor/Sponsor

-    Any 1112(b) Significant Obligor                Depositor/Sponsor

-    Any 1114 Credit Enhancement                    Depositor/Sponsor
     Provider

-    Any 1115 Derivate Counterparty                 Depositor/Sponsor
     Provider

-    Any other 1101(d)(1) material                  Depositor/Sponsor
     party
</TABLE>

<PAGE>

                                   EXHIBIT Q-3

                         FORM 8-K DISCLOSURE INFORMATION

<TABLE>
<CAPTION>
                         FORM 8-K DISCLOSURE INFORMATION
--------------------------------------------------------------------------------
           ITEM ON FORM 8-K                         PARTY RESPONSIBLE
           -----------------                        -----------------
<S>                                     <C>
   ITEM 1.01- ENTRY INTO A MATERIAL                    All parties
        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

ITEM 1.02- TERMINATION OF A MATERIAL                   All parties
        DEFINITIVE AGREEMENT

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.

       ITEM 1.03- BANKRUPTCY OR                         Depositor
            RECEIVERSHIP

Disclosure is required regarding the
bankruptcy or receivership, with
respect to any of the following:

-    Sponsor (Seller)                          Depositor/Sponsor (Seller)

-    Depositor                                          Depositor

-    Master Servicer                                 Master Servicer

-    Affiliated Servicer                                Servicer

-    Other Servicer servicing 20% or                    Servicer
     more of the pool assets at the
     time of the report

-    Other material servicers                           Servicer

-    Trustee                                            Trustee

-    Securities Administrator                   Securities Administrator

-    Significant Obligor                                Depositor

-    Credit Enhancer (10% or more)                      Depositor

-    Derivative Counterparty                            Depositor

-    Custodian                                          Custodian
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
                         FORM 8-K DISCLOSURE INFORMATION
--------------------------------------------------------------------------------
           ITEM ON FORM 8-K                         PARTY RESPONSIBLE
           -----------------                        -----------------
<S>                                     <C>
  ITEM 2.04- TRIGGERING EVENTS THAT                     Depositor
   ACCELERATE OR INCREASE A DIRECT                   Master Servicer
FINANCIAL OBLIGATION OR AN OBLIGATION           Securities Administrator
     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 monthly
statements to the certificateholders.

 ITEM 3.03- MATERIAL MODIFICATION TO            Securities Administrator
     RIGHTS OF SECURITY HOLDERS                          Trustee
                                                        Depositor

Disclosure is required of any
material modification to documents
defining the rights of
Certificateholders, including the
Pooling and Servicing Agreement.

 ITEM 5.03- AMENDMENTS OF ARTICLES OF                   Depositor
 INCORPORATION OR BYLAWS; CHANGE OF
             FISCAL YEAR

Disclosure is required of any
amendment "to the governing documents
of the issuing entity".

   ITEM 6.01- ABS INFORMATIONAL AND                     Depositor
        COMPUTATIONAL MATERIAL

  ITEM 6.02- CHANGE OF SERVICER OR      Master Servicer/Securities Administrator
      SECURITIES ADMINISTRATOR                 /Depositor/Servicer/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 or
trustee.

Reg AB disclosure about any new            Servicer/Master Servicer/Depositor
servicer or master servicer is also
required.

Reg AB disclosure about any new                          Trustee
Trustee is also required.

     ITEM 6.03- CHANGE IN CREDIT           Depositor/Securities Administrator
   ENHANCEMENT OR 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.
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
                         FORM 8-K DISCLOSURE INFORMATION
--------------------------------------------------------------------------------
           ITEM ON FORM 8-K                         PARTY RESPONSIBLE
           -----------------                        -----------------
<S>                                     <C>
Reg AB disclosure about any new                         Depositor
enhancement provider is also
required.

     ITEM 6.04- FAILURE TO MAKE A               Securities Administrator
        REQUIRED DISTRIBUTION                            Trustee

  ITEM 6.05- SECURITIES ACT UPDATING                    Depositor
             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.

If there are any new servicers or                        Depositor
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.

     ITEM 7.01- REG FD DISCLOSURE                      All parties

       ITEM 8.01- OTHER EVENTS                          Depositor

   Any event, with respect to which
 information is not otherwise called
for in Form 8-K, that the registrant
        deems of importance to
         certificateholders.

 ITEM 9.01- FINANCIAL STATEMENTS AND        Responsible party for reporting/
              EXHIBITS                    disclosing the financial statement or
                                                         exhibit
</TABLE>

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