Document:

Amendment Number 2 to the Pooling and Servicing Agreement

 Exhibit 4.2 
 EXECUTION VERSION 
 AMENDMENT NO. 2 
 TO THE 
 POOLING AND SERVICING AGREEMENT 
 Amendment No. 2, dated as of March 27, 2006 (the “Amendment”), to the Pooling and Servicing Agreement (the
“Agreement”) dated as of September 1, 2003, by and among NovaStar Mortgage Funding Corporation (the “Company”), NovaStar Mortgage, Inc., as seller and servicer (the “Seller” or
“Servicer”), U.S. Bank, National Association, as successor to Wachovia Bank, National Association, as custodian (the “Custodian”) and JPMorgan Chase Bank, National Association, (f/k/a JPMorgan Chase Bank) as trustee
(the “Trustee”). Capitalized terms used and not defined herein shall have the meaning set forth in the Agreement and Appendix A thereto. 
 WHEREAS, the parties hereto have entered into the Agreement; 
 WHEREAS, the parties hereto now wish to amend
certain provisions in the Agreement pursuant to Section 12.01 of the Agreement; and 
 WHEREAS, Section 12.01 of the Agreement
provides that the Trustee shall not consent to this Amendment unless it shall have first received an Opinion of Counsel, to the effect that (a) this Amendment (i) will not result in the imposition of a tax on any REMIC created under the
Agreement constituting part of the Trust Fund pursuant to the REMIC Provisions or (ii) cause any REMIC created under the Agreement constituting part of the Trust to fail to qualify as a REMIC at any time that any Certificates are outstanding
and (b) any applicable requirements and conditions set forth in the Agreement with respect to the adoption of amendments thereto have been complied with. 
 NOW, THEREFORE, in consideration of the promises and mutual agreements contained herein, the parties hereto agree to amend the Agreement pursuant to Section 12.01 thereof, and restate certain provisions thereof,
as follows: 
 1. The Amendment. 
 (a) Section 4.04(c)(v) is hereby amended and restated as follows: 
 (iv) fourth, to the Holders of the Class CT
Certificates the excess, if any, of (a) the sum of (x) amounts, if any, received by the Supplemental Interest Trust with respect to such Distribution Date under all Swap Agreements and (y) the Class I Monthly Interest Distributable
Amount over (b) the sum of the amounts described in clauses (i), (ii) and (iii) above; and 
 (v) fifth, pro rata to the
Holders of the Class O and Class CR Certificates based on the amounts paid to the Supplemental Interest Trust on behalf of the Holders of the Class O and Class CR 

 
Certificates pursuant to Section 4.01(a)(i)(H), Section 4.01(a)(ii)(J), Section 4.01(a)(ii)(K), Section 4.01(a)(iii)(J) and
Section 4.01(a)(iii)(K), any remaining amounts. 
 (b) Section 4.04(f)(ii) is hereby amended and restated as follows: 

(ii) second, to the Holders of the Class CT Certificates, any remaining amounts. 
 (c) Section 4.04(g)(iii) is hereby amended and restated as follows: 
 (iii) third, to the Holders of the Class CT Certificates, any remaining amounts. 
 (d)
Section 4.04(h)(iii) is hereby amended and restated as follows: 
 (iii) third, to the Holders of the Class CT Certificates, any
remaining amounts. 
 (e) The first paragraph of Section 5.01 is hereby amended to replace the words “the Class X
Certificates” with the words “the Class CT Certificates, the Class CR Certificates” in each place that “the Class X Certificates” appears. 
 (f) The first two paragraphs of Section 5.02(d) are hereby amended to replace the words “Class X Certificate” with the words “Class CT Certificate, Class CR Certificates” in each place that
“Class X Certificate” appears. 
 (g) The first sentence of Section 10.01(l) is hereby amended to delete the word
“and” and replace it with a comma and add the words “Class CT and Class CR Certificates” after the words “Class O,” and delete the words and “Class X,” and “Class R Certificates.” The second sentence
of Section 10.01(l) is hereby amended to replace the words “an interest rate cap contract written by the Class X Certificateholder” with the words “interest rate cap contracts written by Class CT Certificateholder and the Class
CR Certificateholder.” 
 (h) The exhibit list to the Agreement is hereby amended to delete the words “Exhibit A-12 - Form of Class
X Certificates” and replace them with the words “Exhibit A-12 - [Reserved]” and add the words “Exhibit A-16 - Form of Class CT Certificates” and “Exhibit A-17 - Form of Class CR Certificates” after the words
“Exhibit A-15 - Form of Class R Certificate.” The exhibits to the Agreement are hereby amended to delete Exhibit A-12 and replace it with the word “Reserved” and add “Exhibit A-16 - Form of Class CT Certificates” and
“Exhibit A-17 - Form of Class CR Certificates” in the forms attached hereto as exhibit A-16 and exhibit A-17. 
  

 2 

 (i) The definition of “Certificate Principal Balance” in Appendix A to the Agreement is hereby
amended to replace the words “Class X Certificates” with the words “Class CT Certificates, the Class CR Certificates” in each place that “Class X Certificates” appears. 
 (j) The definition of “Definitive Certificates” in Appendix A to the Agreement is hereby amended to replace the words “Class X” with
the words “Class CR, Class CT.” 
 (k) The definition of “Indenture” in Appendix A to the Agreement is hereby amended to
delete the words “and the” and replace it with a comma and add the words “the Class CT Certificates and the Class CR Certificates” after the words “Class P Certificates,” and delete the words “Class X
Certificates.” 
 (l) The definition of “Initial Certificate Principal Balance” in Appendix A to the Agreement is hereby
amended to replace the words “Class X Certificate” with the words “Class CT Certificate, Class CR Certificate.” 
 (m)
The last sentence of the definition of “Percentage Interest” in Appendix A to the Agreement is hereby amended to replace the words “Class X Certificate” with the words “Class CT Certificate, Class CR Certificate.”

 (n) The definition of “Regular Certificate” in Appendix A to the Agreement is hereby amended to replace the words “Class X
Certificates” with the words “Class CT Certificates, Class CR Certificates.” 
 (o) The definition of “Retained
Certificates” in Appendix A to the Agreement is hereby amended to delete the words “and the” after “Class R Certificates” and replace it with a comma and add the words “the Class CT Certificates and the Class CR
Certificates” after the words “Class R Certificates,” and delete the words “Class X Certificates.” 
 (p) The
definition of “Voting Rights” in Appendix A to the Agreement is hereby amended to add the following sentence at the end of the definition: “The Class CT Certificates do not have Voting Rights.” 
 (q) Appendix A to the Agreement is hereby amended to delete the definition of “Class X Certificate.” 
 (r) Appendix A to the Agreement is hereby amended to add the following definitions: 
 “Class CT Certificate”: Any one of the Class CT Certificates executed, authenticated and delivered pursuant to Section 5.01,
substantially in the form annexed hereto as Exhibit A-16, representing the right to distributions as set forth herein and therein. 
  

 3 

 “Class CR Certificate”: Any one of the Class CR Certificates executed, authenticated and
delivered pursuant to Section 5.01, substantially in the form annexed hereto as Exhibit A-17, representing the right to distributions as set forth herein and therein. 
 (s) The Agreement and Appendix A to the Agreement are hereby amended to replace the words “Class X Certificate” with the words “Class CR
Certificate” in each place that the appear except for as described in paragraphs (a) through (r) above and replace the words “Class X Holder” with the words “Class CR Holder.” 
 2. Condition to effectiveness. As a condition to the effectiveness of this Amendment, an Opinion of Counsel satisfying the requirements of
Section 12.01 of the Agreement has been received by the Parties hereto. 
 3. Effect of Amendment. This Amendment to the
Agreement shall be effective and the Agreement shall be deemed to be modified and amended in accordance herewith on the Distribution Date on the date on which the Trustee receives an executed copy of this Amendment, provided, however, that the
Certificates and ancillary documentation may be modified and the exchange of the Class X Certificates for the Class CR Certificates and the Class CT Certificates pursuant to Section 5.02 of the Agreement may be finalized after the date first
set forth above. This Amendment, once effective, shall be effective as of the date first set forth above. The respective rights, limitations, obligations, duties, liabilities and immunities of the Company, the Seller, the Servicer, the Custodian and
the Trustee shall hereafter be determined, exercised and enforced subject in all respects to such modifications and amendments, and all the terms and conditions of this Amendment shall be and be deemed to be part of the terms and conditions of the
Agreement for any and all purposes. The Agreement, as amended hereby, is hereby ratified and confirmed in all respects. 
 4. The
Agreement in Full Force and Effect as Amended. Except as specifically amended hereby, all the terms and conditions of the Agreement shall remain in full force and effect and, except as expressly provided herein, the effectiveness of this
Amendment shall not operate as, or constitute a waiver or modification of, any right, power or remedy of any party to the Agreement. All references to the Agreement in any other document or instrument shall be deemed to mean the Agreement as amended
by this Amendment. 
 6. Counterparts. This Amendment may be executed by the Parties in several counterparts, each of which shall be
deemed to be an original and all of which shall constitute together but one and the same agreement. This Amendment shall become effective when counterparts hereof executed on behalf of such Party shall have been received. 
 7. Governing Law. This Amendment shall be construed in accordance with and governed by the laws of the State of New York applicable to agreements
made and to be performed therein. 
  

 4 

 IN WITNESS WHEREOF, the Seller, the Servicer, the Company, the Trustee and the Custodian, have caused
this Amendment to be duly executed by their officers thereunto duly authorized, all as of the day and year first above written. 
  

			
	 NOVASTAR MORTGAGE FUNDING CORPORATION,
 as Company

		
	By:	 	 /s/ Matt Kaltenrieder
  

	Name:	 	Matt Kaltenrieder
	Title:	 	Vice President
	
	 NOVASTAR MORTGAGE, INC.,
 as Servicer
and as Seller

		
	By:	 	 /s/ Matt Kaltenrieder
  

	Name:	 	Matt Kaltenrieder
	Title:	 	Vice President
	
	 U.S. BANK, NATIONAL ASSOCIATION,
 as
successor to Wachovia Bank, National
 Association, as Custodian

		
	By:	 	 /s/ Ronald L. Fisher
  

	Name:	 	Ronald L. Fisher
	Title:	 	Authorized Signer
	
	 JPMORGAN CHASE BANK, NATIONAL ASSOCIATION
 as Trustee

		
	By:	 	 /s/ Andrew M. Cooper
  

	Name:	 	Andrew M. Cooper
	Title:	 	Assistant Vice President

 [Signature Page for Amendment No. 2 to the Pooling and Servicing Agreement] 

 Exhibit A-16 
 Form of Class CT Certificate 
 NOVASTAR MORTGAGE SUPPLEMENTAL INTEREST TRUST, SERIES 2003-3

 HOME EQUITY LOAN ASSET-BACKED CERTIFICATE 
 CLASS CT CERTIFICATES 
 Comprised of a Certificate Representing 
 Certain Interests Relating to a Pool of 
 Mortgage Loans 
 The Mortgage Loans are Serviced by 
 NOVASTAR MORTGAGE, INC., as Servicer 
 (This certificate does not represent an interest in, or an obligation
of, nor are the underlying Mortgage Loans insured or guaranteed by, NovaStar Mortgage, Inc., NovaStar Mortgage Funding Corporation, NovaStar Financial, Inc., NovaStar Capital, Inc. or any of their subsidiaries and affiliates. This certificate is
comprised of a Certificate representing a fractional ownership interest in distributions in certain Accounts created pursuant to the Pooling and Servicing Agreement and certain other rights relating thereto and is payable only from amounts received
by the Trustee with respect to the Supplemental Interest Trust.) 
 THIS CERTIFICATE HAS NOT BEEN REGISTERED OR QUALIFIED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”), OR THE DISPOSITION OF THIS CERTIFICATE WITHOUT SUCH REGISTRATION OR QUALIFICATION MAY BE MADE ONLY IN A TRANSACTION WHICH DOES NOT REQUIRE SUCH REGISTRATION OR QUALIFICATION AND IN
ACCORDANCE WITH THE PROVISIONS OF THE POOLING AND SERVICING AGREEMENT. 
 NO TRANSFER OF THIS CERTIFICATE OR ANY INTEREST HEREIN MAY BE MADE
TO (I) AN EMPLOYEE BENEFIT PLAN (AS DEFINED IN SECTION 3(3) OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”)) THAT IS SUBJECT TO THE PROVISIONS OF TITLE I OF ERISA, (II) A PLAN (AS DEFINED IN SECTION
4975(E)(1) OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”)) THAT IS SUBJECT TO SECTION 4975 OF THE CODE OR (III) ANY PERSON ACTING, DIRECTLY OR INDIRECTLY, ON BEHALF OF ANY PLAN DESCRIBED IN (I) OR (II) OR
ACQUIRING THIS CERTIFICATE OR ANY INTEREST HEREIN WITH THE ASSETS OF ANY SUCH PLAN. 
  

					
	No.: CT	 	Date: March 27, 2006	 	CUSIP: 66987X HR 9
			
	Percentage Interest: 100%	 	 Registered Owner:
 Greenwich Capital Financial

Products, Inc.
	 	 Final Scheduled Distribution
 Date: December 26,
2033

 The registered owner named above is the registered owner of a fractional interest in that portion of the
Supplemental Interest Trust that holds the Class I Certificates and any amounts received under the Swap Agreements or the Cap Agreements pursuant to that certain Pooling and Servicing Agreement dated as of September 1, 2003 (the “Pooling
and Servicing Agreement”) by and among NovaStar Mortgage Funding Corporation as the company (the “Company”), the Trustee, Wachovia Bank, National Association, as the custodian (the “Custodian”), and NovaStar Mortgage, Inc.
as servicer (the “Servicer”) and as seller (the “Seller”). 
 Each owner of record of a Class CT Certificate will be
entitled to certain distributions, as described under Article IV of the Pooling and Servicing Agreement. 
 In order to receive the final
distribution hereon, the owner hereof is required to present this Certificate to the Trustee. The Pooling and Servicing Agreement provides that, in any event, upon the making of the final distribution due on this Certificate, this Certificate shall
be deemed cancelled for all purposes under the Pooling and Servicing Agreement. 
 SOLELY FOR FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE
REPRESENTS OWNERSHIP OF THE CLASS I CERTIFICATES, THE SWAP AGREEMENTS AND THE CAP AGREEMENTS. 
 DISTRIBUTIONS ON THIS CERTIFICATE WILL BE
MADE TO THE OWNER HEREOF FOLLOWING THE PRIOR FUNDING OF AMOUNTS OWED TO CERTAIN SWAP COUNTERPARTIES, AND FOLLOWING THE FUNDING OF SUPPLEMENTAL INTEREST PAYMENTS TO CERTAIN OTHER CLASSES OF CERTIFICATES. 
 THIS CERTIFICATE IS A PASS-THROUGH CERTIFICATE ONLY AND, NOTWITHSTANDING REFERENCES HEREIN TO PRINCIPAL AND INTEREST, NO DEBT OF ANY PERSON IS
REPRESENTED HEREBY (OTHER THAN AS REQUIRED FOR FEDERAL INCOME TAX PURPOSES). 
 NEITHER THIS CERTIFICATE NOR THE MORTGAGE LOANS ARE INSURED
OR GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION, THE GOVERNMENT NATIONAL MORTGAGE ASSOCIATION OR ANY OTHER GOVERNMENTAL AGENCY. 
 This Certificate is one of a Class of duly-authorized Certificates designated as NovaStar Home Equity Loan Asset-Backed Certificates, Series 2003-3, Class CT Certificates (the “Class CT Certificates”) and issued under and subject
to the terms, provisions and conditions of the Pooling and Servicing Agreement, to which the owner of this Certificate, by virtue of acceptance hereof assents, and is bound. Also issued under the Pooling and Servicing Agreement are the
Class A-1 Certificates, Class A-2A Certificates, Class A-2B Certificates, Class A-2C Certificates, Class A-3 Certificates, Class M-1 Certificates, Class M-2 Certificates, Class M-3 Certificates, Class B-1 Certificates, Class
B-2 Certificates, Class I Certificates, Class P Certificates, Class O Certificates, Class CR Certificates and Class R Certificates, and all such Certificates are collectively referred to as the “Certificates”. 
  

 A-16-2 

 Terms capitalized herein and not otherwise defined herein shall have the respective meanings set forth in
the Pooling and Servicing Agreement. 
 On the 25th day of each month, or, if such day is not a Business Day, then the next succeeding
Business Day (each such day being a “Distribution Date”) commencing April 25, 2006, the owners of the Class CT Certificates as of the close of business on the business day immediately preceding such Distribution Date (the “Record
Date”) will be entitled to receive payments as described in Article IV of the Pooling and Servicing Agreement. Distributions will be made in immediately available funds to such owners, by wire transfer or by check mailed to the address of the
person entitled thereto as it appears on the Certificate Register. 
 The Trustee is required to duly and punctually pay distributions with
respect to this Certificate in accordance with the terms hereof and the Pooling and Servicing Agreement. Amounts properly withheld under the Code or applicable to any owner shall be considered as having been paid by the Trustee to such owner for all
purposes of the Pooling and Servicing Agreement. 
 The Mortgage Loans will be serviced by the Servicer pursuant to the Pooling and Servicing
Agreement. The Pooling and Servicing Agreement permits the Servicer to enter into Sub-Servicing Agreements with certain institutions eligible for appointment as Sub-Servicers for the servicing and administration of certain Mortgage Loans. No
appointment of any Sub-Servicer shall release the Servicer from any of its obligations under the Pooling and Servicing Agreement. 
 This
Certificate does not represent a deposit or other obligation of, or an interest in, nor are the underlying Mortgage Loans insured or guaranteed by, NovaStar Mortgage, Inc., NovaStar Mortgage Funding Corporation, NovaStar Capital, Inc., NovaStar
Financial Inc., or any of their subsidiaries and affiliates and are not insured or guaranteed by the Federal Deposit Insurance Corporation, the Government National Mortgage Association, or any other governmental agency. This Certificate is limited
in right of payment to certain collections and recoveries relating to the Mortgage Loans and amounts on deposit in the Accounts (except as otherwise provided in the Pooling and Servicing Agreement) all as more specifically set forth hereinabove and
in the Pooling and Servicing Agreement. 
 No owner shall have any right to institute any proceeding, judicial or otherwise, with respect to
the Pooling and Servicing Agreement for the appointment of a receiver or trustee, or for any other remedy under the Pooling and Servicing Agreement except in compliance with the terms thereof. 
 Notwithstanding any other provisions in the Pooling and Servicing Agreement, the owner of any Certificate shall have the right which is absolute and
unconditional to receive distributions to the extent provided in the Pooling and Servicing Agreement with respect to such Certificate or to institute suit for the enforcement of any such distribution, and such right shall not be impaired without the
consent of such owner. 
 The Pooling and Servicing Agreement will terminate upon notice to the Trustee upon the earliest of (i) the
Distribution Date on which the Certificate Principal Balances of the Regular Certificates have been reduced to zero, (ii) the final payment or 
  

 A-16-3 

 other liquidation of the last Mortgage Loan in the Trust, (iii) the optional purchase by the Servicer of the
Mortgage Loans as described below, (iv) the Distribution Date in January 2036 and (v) at any time when a Qualified Liquidation of the Master REMIC and REMIC I, REMIC II, REMIC III and REMIC IV is effected pursuant to the Pooling and
Servicing Agreement. In addition, under certain circumstances relating to the qualification of either the Master REMIC or any of REMIC I, REMIC II, REMIC III or REMIC IV as a REMIC under the Code, the Mortgage Loans may be sold, thereby affecting
the early retirement of the Certificates. Notwithstanding the foregoing, in no event shall the Trust hereby continue beyond the expiration of 21 years from the death of the last survivor of the descendants of Joseph P. Kennedy, the late ambassador
of the United States to the Court of St. James, living on the date of the Pooling and Servicing Agreement. 
 The Servicer may, at its
option, terminate the Pooling and Servicing Agreement on any date on which the aggregate of the Principal Balances of the Mortgage Loans on such date is equal to or less than 10% of the Maximum Collateral Amount, by purchasing, on the next
succeeding Distribution Date, all of the outstanding Mortgage Loans and REO Properties at a price equal to the greater of the Principal Balance of the Mortgage Loans and REO Properties or the market value of the Mortgage Loans and REO Properties, in
each case plus accrued and unpaid interest thereon at the weighted average of the Mortgage Rates through the end of the Due Period preceding the final Distribution Date plus unreimbursed Servicing Advances, Advances, any unpaid Servicing Fees
allocable to such Mortgage Loans and REO Properties and any accrued and unpaid Available Funds Cap Shortfall Amount and Available Funds Cap Carryforward Amount (without duplication of amounts already paid) and any unpaid amount due the Trustee, the
Swap Counterparties, the Cap Counterparties and the Custodian under the Pooling and Servicing Agreement. 
 The Trustee shall give written
notice of termination of the Pooling and Servicing Agreement to each owner in the manner set forth therein. 
 As provided in the Pooling and
Servicing Agreement and subject to certain limitations therein set forth and referred to on the face hereof, the transfer of this Certificate is registerable in the Certificate Register upon surrender of this Certificate for registration of transfer
at the office designated as the location of the Certificate Register, and thereupon one or more new certificates of like class, tenor and Percentage Interest will be issued to the designated transferee or transferees. 
 The Trustee is required to furnish certain information on each Distribution Date to the owner of this Certificate, as more fully described in the Pooling
and Servicing Agreement. 
 As provided in the Pooling and Servicing Agreement and subject to certain limitations therein set forth, Class CT
Certificates are exchangeable for new Class CT Certificates of authorized denominations evidencing the same aggregate principal amount. 
 The Trustee and any agent thereof may treat the person in whose name this Certificate is registered as the owner hereof for all purposes, and none of the Trustee or any such agent shall be affected by notice to the contrary. 
  

 A-16-4 

 IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly executed on behalf of the Trust.

  

							
		 		 	 JPMORGAN CHASE BANK,
 NATIONAL
ASSOCIATION,
 not in its individual capacity, but solely
 in its
capacity as Trustee

				
		 		 	By:	 	  

		 		 	Name:	 	
		 		 	Title:	 	
			
	Trustee Authentication	 		 	
			
	 JPMORGAN CHASE BANK,
 NATIONAL
ASSOCIATION,
 not in its individual capacity, but solely in
 its
capacity as Trustee
	 		 	
				
	By:	 	  
	 		 	
	Name:	 		 		 	
	Title:	 		 		 	

  

 A-16-5 

 Exhibit A-17 
 Form of Class CR Certificate 
 NOVASTAR MORTGAGE SUPPLEMENTAL INTEREST TRUST, SERIES 2003-3

 HOME EQUITY LOAN ASSET-BACKED CERTIFICATE 
 CLASS CR CERTIFICATES 
 Comprised of a Certificate Representing 
 Certain Interests Relating to a Pool of 
 Mortgage Loans 
 The Mortgage Loans are Serviced by 
 NOVASTAR MORTGAGE, INC., as Servicer 
 (This certificate does not represent an interest in, or an obligation
of, nor are the underlying Mortgage Loans insured or guaranteed by, NovaStar Mortgage, Inc., NovaStar Mortgage Funding Corporation, NovaStar Financial, Inc., NovaStar Capital, Inc. or any of their subsidiaries and affiliates. This certificate is
comprised of a Certificate representing a fractional ownership interest in distributions in certain Accounts created pursuant to the Pooling and Servicing Agreement and certain other rights relating thereto and is payable only from amounts received
by the Trustee relating to the Mortgage Loans and other assets held in the Trust Fund.) 
 THIS CERTIFICATE HAS NOT BEEN REGISTERED OR
QUALIFIED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”), OR THE DISPOSITION OF THIS CERTIFICATE WITHOUT SUCH REGISTRATION OR QUALIFICATION MAY BE MADE ONLY IN A TRANSACTION WHICH DOES NOT REQUIRE SUCH REGISTRATION OR
QUALIFICATION AND IN ACCORDANCE WITH THE PROVISIONS OF THE POOLING AND SERVICING AGREEMENT. 
 NO TRANSFER OF THIS CERTIFICATE OR ANY
INTEREST HEREIN MAY BE MADE TO (I) AN EMPLOYEE BENEFIT PLAN (AS DEFINED IN SECTION 3(3) OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”)) THAT IS SUBJECT TO THE PROVISIONS OF TITLE I OF ERISA, (II) A
PLAN (AS DEFINED IN SECTION 4975(E)(1) OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”)) THAT IS SUBJECT TO SECTION 4975 OF THE CODE OR (III) ANY PERSON ACTING, DIRECTLY OR INDIRECTLY, ON BEHALF OF ANY PLAN DESCRIBED
IN (I) OR (II) OR ACQUIRING THIS CERTIFICATE OR ANY INTEREST HEREIN WITH THE ASSETS OF ANY SUCH PLAN. 
  

					
	No.: CR	 	Date: March 27, 2006	 	CUSIP: 66987X HS 7
			
	Percentage Interest: 100%	 	 Registered Owner:
 Greenwich Capital Financial

Products, Inc.
	 	 Final Scheduled Distribution
 Date: December 26,
2033

 The registered owner named above is the registered owner of a fractional interest in (i) each
Mortgage Loan identified on the Mortgage Loan Schedule attached as Exhibit B to that certain Pooling and Servicing Agreement dated as of September 1, 2003 (the “Pooling and Servicing Agreement”) by and among NovaStar Mortgage Funding
Corporation as the company (the “Company”), the Trustee, Wachovia Bank, National Association, as the custodian (the “Custodian”), and NovaStar Mortgage, Inc. as servicer (the “Servicer”) and as seller (the
“Seller”), including the related Cut-off Date Principal Balance, all interest accruing thereon on and after the Cut-off Date and all collections in respect of interest and principal due after the Cut-off Date; (ii) property which
secured each such Mortgage Loan and which has been acquired by foreclosure or deed in lieu of foreclosure; (iii) the Company’s interest in any insurance policies in respect of the Mortgage Loans; (iv) all proceeds of any of the
foregoing; (v) the rights of the Company under the Purchase Agreement and (vi) all other assets included or to be included in the Trust Fund. Such assignment includes all interest and principal due to the Company or the Servicer after the
Cut-off Date with respect to the Mortgage Loans. 
 Each owner of record of a Class CR Certificate will be entitled to certain distributions,
as described under Article IV of the Pooling and Servicing Agreement. 
 In order to receive the final distribution hereon, the owner hereof
is required to present this Certificate to the Trustee. The Pooling and Servicing Agreement provides that, in any event, upon the making of the final distribution due on this Certificate, this Certificate shall be deemed cancelled for all purposes
under the Pooling and Servicing Agreement. 
 SOLELY FOR FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS OWNERSHIP OF THE CLASS X-1
MASTER REMIC REGULAR INTEREST AND THE CLASS X-2 MASTER REMIC REGULAR INTEREST, WHICH EACH REPRESENT A “REGULAR INTEREST” IN A “REAL ESTATE MORTGAGE INVESTMENT CONDUIT” (“REMIC”) ISSUED ON THE CLOSING DATE AS THOSE TERMS
ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”), ASSUMING COMPLIANCE WITH THE REMIC PROVISIONS (SECTIONS 860A THROUGH 860G) OF THE CODE. 
 DISTRIBUTIONS ON THIS CERTIFICATE WILL BE MADE TO THE OWNER HEREOF FOLLOWING THE PRIOR FUNDING OF AMOUNTS OWED TO CERTAIN SWAP COUNTERPARTIES, AND
FOLLOWING THE FUNDING OF SUPPLEMENTAL INTEREST PAYMENTS TO CERTAIN OTHER CLASSES OF CERTIFICATES. 
 THIS CERTIFICATE IS A PASS-THROUGH
CERTIFICATE ONLY AND, NOTWITHSTANDING REFERENCES HEREIN TO PRINCIPAL AND INTEREST, NO DEBT OF ANY PERSON IS REPRESENTED HEREBY (OTHER THAN AS REQUIRED FOR FEDERAL INCOME TAX PURPOSES). 
 NEITHER THIS CERTIFICATE NOR THE MORTGAGE LOANS ARE INSURED OR GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION, THE GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION OR ANY OTHER GOVERNMENTAL AGENCY. 
  

 A-17-2 

 This Certificate is one of a Class of duly-authorized Certificates designated as NovaStar Home Equity
Loan Asset-Backed Certificates, Series 2003-3, Class CR Certificates (the “Class CR Certificates”) and issued under and subject to the terms, provisions and conditions of the Pooling and Servicing Agreement, to which the owner of this
Certificate, by virtue of acceptance hereof assents, and is bound. Also issued under the Pooling and Servicing Agreement are the Class A-1 Certificates, Class A-2A Certificates, Class A-2B Certificates, Class A-2C Certificates,
Class A-3 Certificates, Class M-1 Certificates, Class M-2 Certificates, Class M-3 Certificates, Class B-1 Certificates, Class B-2 Certificates, Class I Certificates, Class P Certificates, Class O Certificates, Class CT Certificates and Class R
Certificates, and all such Certificates are collectively referred to as the “Certificates”. 
 Terms capitalized herein and not
otherwise defined herein shall have the respective meanings set forth in the Pooling and Servicing Agreement. 
 On the 25th day of each
month, or, if such day is not a Business Day, then the next succeeding Business Day (each such day being a “Distribution Date”) commencing April 25, 2006, the owners of the Class CR Certificates as of the close of business on the
business day immediately preceding such Distribution Date (the “Record Date”) will be entitled to receive payments as described in Article IV of the Pooling and Servicing Agreement. Distributions will be made in immediately available funds
to such owners, by wire transfer or by check mailed to the address of the person entitled thereto as it appears on the Certificate Register. 
 The Trustee is required to duly and punctually pay distributions with respect to this Certificate in accordance with the terms hereof and the Pooling and Servicing Agreement. Amounts properly withheld under the Code or applicable to any
owner shall be considered as having been paid by the Trustee to such owner for all purposes of the Pooling and Servicing Agreement. 
 The
Mortgage Loans will be serviced by the Servicer pursuant to the Pooling and Servicing Agreement. The Pooling and Servicing Agreement permits the Servicer to enter into Sub-Servicing Agreements with certain institutions eligible for appointment as
Sub-Servicers for the servicing and administration of certain Mortgage Loans. No appointment of any Sub-Servicer shall release the Servicer from any of its obligations under the Pooling and Servicing Agreement. 
 This Certificate does not represent a deposit or other obligation of, or an interest in, nor are the underlying Mortgage Loans insured or guaranteed by,
NovaStar Mortgage, Inc., NovaStar Mortgage Funding Corporation, NovaStar Capital, Inc., NovaStar Financial Inc., or any of their subsidiaries and affiliates and are not insured or guaranteed by the Federal Deposit Insurance Corporation, the
Government National Mortgage Association, or any other governmental agency. This Certificate is limited in right of payment to certain collections and recoveries relating to the Mortgage Loans and amounts on deposit in the Accounts (except as
otherwise provided in the Pooling and Servicing Agreement) all as more specifically set forth hereinabove and in the Pooling and Servicing Agreement. 
 No owner shall have any right to institute any proceeding, judicial or otherwise, with respect to the Pooling and Servicing Agreement for the appointment of a receiver or trustee, or for any other remedy under the
Pooling and Servicing Agreement except in compliance with the terms thereof. 
  

 A-17-3 

 Notwithstanding any other provisions in the Pooling and Servicing Agreement, the owner of any Certificate
shall have the right which is absolute and unconditional to receive distributions to the extent provided in the Pooling and Servicing Agreement with respect to such Certificate or to institute suit for the enforcement of any such distribution, and
such right shall not be impaired without the consent of such owner. 
 The Pooling and Servicing Agreement will terminate upon notice to the
Trustee upon the earliest of (i) the Distribution Date on which the Certificate Principal Balances of the Regular Certificates have been reduced to zero, (ii) the final payment or other liquidation of the last Mortgage Loan in the Trust,
(iii) the optional purchase by the Servicer of the Mortgage Loans as described below, (iv) the Distribution Date in January 2036 and (v) at any time when a Qualified Liquidation of the Master REMIC and REMIC I, REMIC II, REMIC III and
REMIC IV is effected pursuant to the Pooling and Servicing Agreement. In addition, under certain circumstances relating to the qualification of either the Master REMIC or any of REMIC I, REMIC II, REMIC III or REMIC IV as a REMIC under the Code, the
Mortgage Loans may be sold, thereby affecting the early retirement of the Certificates. Notwithstanding the foregoing, in no event shall the Trust hereby continue beyond the expiration of 21 years from the death of the last survivor of the
descendants of Joseph P. Kennedy, the late ambassador of the United States to the Court of St. James, living on the date of the Pooling and Servicing Agreement. 
 The Servicer may, at its option, terminate the Pooling and Servicing Agreement on any date on which the aggregate of the Principal Balances of the Mortgage Loans on such date is equal to or less than 10% of the
Maximum Collateral Amount, by purchasing, on the next succeeding Distribution Date, all of the outstanding Mortgage Loans and REO Properties at a price equal to the greater of the Principal Balance of the Mortgage Loans and REO Properties or the
market value of the Mortgage Loans and REO Properties, in each case plus accrued and unpaid interest thereon at the weighted average of the Mortgage Rates through the end of the Due Period preceding the final Distribution Date plus unreimbursed
Servicing Advances, Advances, any unpaid Servicing Fees allocable to such Mortgage Loans and REO Properties and any accrued and unpaid Available Funds Cap Shortfall Amount and Available Funds Cap Carryforward Amount (without duplication of amounts
already paid) and any unpaid amount due the Trustee, the Swap Counterparties, the Cap Counterparties and the Custodian under the Pooling and Servicing Agreement. 
 The Trustee shall give written notice of termination of the Pooling and Servicing Agreement to each owner in the manner set forth therein. 
 As provided in the Pooling and Servicing Agreement and subject to certain limitations therein set forth and referred to on the face hereof, the transfer of this Certificate is registerable in the Certificate Register
upon surrender of this Certificate for registration of transfer at the office designated as the location of the Certificate Register, and thereupon one or more new certificates of like class, tenor and Percentage Interest will be issued to the
designated transferee or transferees. 
  

 A-17-4 

 The Trustee is required to furnish certain information on each Distribution Date to the owner of this
Certificate, as more fully described in the Pooling and Servicing Agreement. 
 As provided in the Pooling and Servicing Agreement and
subject to certain limitations therein set forth, Class CR Certificates are exchangeable for new Class CR Certificates of authorized denominations evidencing the same aggregate principal amount. 
 The Trustee and any agent thereof may treat the person in whose name this Certificate is registered as the owner hereof for all purposes, and none of the
Trustee or any such agent shall be affected by notice to the contrary. 
  

 A-17-5 

 IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly executed on behalf of the Trust.

  

							
		 		 	 JPMORGAN CHASE BANK,
 NATIONAL
ASSOCIATION,
 not in its individual capacity, but solely
 in its
capacity as Trustee

				
		 		 	By:	 	  

		 		 	Name:	 	
		 		 	Title:	 	
			
	Trustee Authentication	 		 	
			
	 JPMORGAN CHASE BANK,
 NATIONAL
ASSOCIATION,
 not in its individual capacity, but solely in
 its
capacity as Trustee
	 		 	
				
	By:	 	  
	 		 	
	Name:	 		 		 	
	Title:	 		 		 	

  

 A-17-6Amendment Number 1 to the Pooling and Servicing Agreement

 Exhibit 4.1 
 AMENDMENT NO. 1 
 TO THE 
 POOLING AND SERVICING AGREEMENT 
 Amendment No. 1, dated as of
August 1, 2005 (the “Amendment”), to the Pooling and Servicing Agreement (the “Agreement”) dated as of November 1, 2003, by and among NovaStar Mortgage Funding Corporation (the “Company”),
NovaStar Mortgage, Inc., as seller and servicer (the “Seller” or “Servicer”), Wachovia Bank, National Association, as custodian (the “Custodian”) and JPMorgan Chase Bank, National Association
(formerly known as JPMorgan Chase Bank), as trustee (the “Trustee”). Capitalized terms used and not defined herein shall have the meaning set forth in the Agreement and Appendix A thereto. 
 WHEREAS the parties hereto have entered into the Agreement; 
 WHEREAS the parties hereto now wish to amend certain provisions in the Agreement pursuant to Section 12.01 of the Agreement; and 
 WHEREAS the Trustee shall not consent to this Amendment to the Agreement unless it shall have first received an Opinion of Counsel, to the effect that (a) this Amendment (i) will not result in the imposition
of a tax on any REMIC created hereunder constituting part of the Trust Fund pursuant to the REMIC Provisions or (ii) cause any REMIC created hereunder constituting part of the Trust to fail to qualify as a REMIC at any time that any
Certificates are outstanding and that the Amendment is being made in accordance with the terms of the Agreement and (b) any applicable requirements and conditions set forth in the Agreement with respect to the adoption of amendments thereto
have been complied with. 
 NOW, THEREFORE, in consideration of the promises and mutual agreements contained herein, the parties hereto agree
to amend the Agreement pursuant to Section 12.01 of the Agreement and restate certain provisions thereof as follows: 
 1. The Agreement
is hereby amended to add a form of the Advance Facility Notice as Exhibit K (in the form attached hereto as Exhibit K) and a form of the written notice to be provided to the Trustee of an Advance or Servicing Advance pursuant to Section 3.26 of
the Agreement as Exhibit L (in the form attached hereto as Exhibit L). 
 2. MI Claim Payment Advances. 
 (a) The following paragraph is hereby inserted between the current second and third paragraphs of Section 3.13(a) of the Pooling and Servicing
Agreement; 
 In the event that a Mortgage Loan would be properly classified as a Liquidated Mortgage Loan but for the fact that not all MI
Insurance Proceeds claimed under the related MI Policy have been received, the Servicer may, from its own funds, make an advance (an “MI Claim Payment Advance”) to the Collection Account in an 

 amount not to exceed the claimed amount of such MI Insurance Proceeds not yet received. The Servicer shall not make any
MI Claim Payment Advance with respect to a claim under an MI Policy (i) if an MI Insurer Insolvency Event has occurred and is continuing with respect to the related MI Insurer, or (ii) to the extent that the MI Insurer has indicated it
will not pay the full amount of the claim. In the event that the MI Claim Payment Advance equals the claimed amount on such MI Policy, then upon the deposit of such MI Claim Payment Advance into the Collection Account the related Mortgage Loan shall
be considered a “Liquidated Mortgage Loan.” 
 (b) Clause (a)(vi) of Section 3.07(a) of the Pooling and Servicing Agreement is
hereby amended to read as follows: 
 (vi) to reimburse the Servicer or any Subservicer from Insurance Proceeds or Liquidation Proceeds
relating to a particular Mortgage Loan for amounts expended by the Servicer or such Subservicer pursuant to Section 3.13, which amounts were expended (x) in good faith in connection with the restoration of the related Mortgaged Property
which was damaged by the uninsured cause, (y) in connection with the liquidation of such Mortgage Loan, or (z) with respect to an MI Claim Payment Advance made by the Servicer with respect to such Mortgage Loan; provided, however, that
reimbursements pursuant to clause (z) may only be made from MI Insurance Proceeds actually paid by the MI Insurer under the MI Policy related to such Mortgage Loan; 
 (c) The following definition of MI Claim Payment Advance is hereby added to Appendix A to the Pooling and Servicing Agreement and the definitions of Liquidation Proceeds, Nonrecoverable Advance, Realized Loss and
Subsequent Recovery set forth in Appendix A to the Pooling and Servicing Agreement are hereby amended to read as follows: 
 “Liquidation Proceeds”: Proceeds (including Insurance Proceeds and any MI Claim Payment Advance) received in connection with the liquidation of any Mortgage Loan or related REO Property. 
 “MI Claim Payment Advance”: As defined in Section 3.13(a). 
 “Nonrecoverable Advance”: With respect to any Mortgage Loan: 
 (x) any Advance (other than an MI Claim Payment Advance) (i) which was previously made or is proposed to be made by the Servicer; and
(ii) which, in the good faith judgment of the Servicer, will not or, in the case of a proposed Advance, would not, be ultimately recoverable by the Servicer from Liquidation Proceeds, Repurchase Price or future payments on such Mortgage Loan;
and 
 (y) upon the final payment by the MI Insurer under an MI Policy for a Mortgage Loan with respect to which the Servicer
has made an MI Claim Payment Advance, the amount, if any, by which an MI Claim Payment Advance made by the Servicer exceeds, the amount actually received as MI Insurance Proceeds from the related MI Insurer on account of the related claim;
provided,  
  

 2 

 however that if an MI Insurer Insolvency Event occurs after the MI Claim Payment Advance has been
made by the Servicer and before the full amount thereof has been reimbursed to the Servicer from the related MI Insurance Proceeds, then any remaining, unreimbursed amount shall be considered a Nonrecoverable Advance as of the date of the MI Insurer
Insolvency Event; provided, further, however, that if a Nonrecoverable Advance has been reimbursed to the Servicer and the MI Insurer that was subject to the MI Insurer Insolvency Event thereafter makes payment on account of the applicable MI
Policy, such payments shall be deemed Subsequent Recoveries. 
 “Realized Loss”: With respect to each Mortgage Loan (or REO
Property) as to which a Cash Liquidation or REO Disposition has occurred, an amount (not less than zero) equal to (i) the Principal Balance of the Mortgage Loan (or REO Property) as of the date of Cash Liquidation or REO Disposition, plus
(ii) interest (and REO Imputed Interest, if any) at the Net Mortgage Rate from the Due Date as to which interest was last paid or advanced to Certificateholders up to the last day of the month in which the Cash Liquidation (or REO Disposition)
occurred on the Principal Balance of such Mortgage Loan (or REO Property) outstanding during each Due Period that such interest was not paid or advanced, minus (iii) Net Liquidation Proceeds (after giving effect to coverage provided by any MI
Claim Payment Advance and any MI Policy), if any, received with respect to such Cash Liquidation (or REO Disposition), minus the portion thereof reimbursable to the Servicer or any Subservicer with respect to related Advances or expenses as to which
the Servicer or Subservicer is entitled to reimbursement thereunder but which have not been previously reimbursed, minus (iv) with respect to a Mortgage Loan on which a MI Claim Payment Advance has been made, the amount, if any, by which the MI
Claim Payment Advance exceeds the related amount of MI Insurance Proceeds paid by the MI Insurer on account of the related Mortgage Loan upon the final payment by such MI Insurer (including payments made on or after the date on which such Mortgage
Loan became a Liquidated Loan). With respect to each Mortgage Loan which has become the subject of a Deficient Valuation, the difference between the Principal Balance of the Mortgage Loan outstanding immediately prior to such Deficient Valuation and
the Principal Balance of the Mortgage Loan as reduced by the Deficient Valuation. With respect to each Mortgage Loan which has become the object of a Debt Service Reduction, the amount of such Debt Service Reduction. 
 “Subsequent Recovery”: With respect to any Mortgage Loan that had previously been the subject of a Realized Loss, (a) any principal
amount subsequently received in connection with such Mortgage Loan, plus (b) with respect to a Mortgage Loan on which a MI Claim Payment Advance has been made, the amount, if any, by which the related amount of MI Insurance Proceeds exceeds
such MI Claim Payment Advance, plus (c) with respect to a Nonrecoverable Advance relating to a MI Insurer Insolvency Event, the amount, if any, by which the related MI Insurer subsequently pays in respect of such Nonrecoverable Advance.

 3. Condition to effectiveness. As a condition to the effectiveness of this Amendment, an Opinion of Counsel satisfying the
requirements of Section 12.01 of the Agreement has been received by the Parties hereto. 
  

 3 

 4. Effect of Amendment. This Amendment to the Agreement shall be effective and the Agreement
shall be deemed to be modified and amended in accordance herewith on the Distribution Date on the date on which the Trustee receives an executed copy of this Amendment. This Amendment, once effective, shall be effective as of the date first set
forth above. The respective rights, limitations, obligations, duties, liabilities and immunities of the Company, the Seller, the Servicer, the Custodian and the Trustee shall hereafter be determined, exercised and enforced subject in all respects to
such modifications and amendments, and all the terms and conditions of this Amendment shall be and be deemed to be part of the terms and conditions of the Agreement for any and all purposes. The Agreement, as amended hereby, is hereby ratified and
confirmed in all respects. 
 5. The Agreement in Full Force and Effect as Amended. Except as specifically amended hereby, all the
terms and conditions of the Agreement shall remain in full force and effect and, except as expressly provided herein, the effectiveness of this Amendment shall not operate as, or constitute a waiver or modification of, any right, power or remedy of
any party to the Agreement. All references to the Agreement in any other document or instrument shall be deemed to mean the Agreement as amended by this Amendment. 
 6. Counterparts. This Amendment may be executed by the Parties in several counterparts, each of which shall be deemed to be an original and all of which shall constitute together but one and the same agreement.
This Amendment shall become effective when counterparts hereof executed on behalf of such Party shall have been received. 
 7. Governing
Law. This Amendment shall be construed in accordance with and governed by the laws of the State of New York applicable to agreements made and to be performed therein. 
  

 4 

 IN WITNESS WHEREOF, the Seller, the Servicer, the Company, the Trustee and the Custodian, have caused
this Amendment to be duly executed by their officers thereunto duly authorized, all as of the day and year first above written. 
  

			
	 NOVASTAR MORTGAGE FUNDING CORPORATION,
 as Company

		
	By:	 	 /s/ Matt Kaltenrieder

	Name:	 	Matt Kaltenrieder
	Title:	 	Vice President
	
	 NOVASTAR MORTGAGE, INC.,
 as Servicer and as
Seller

		
	By:	 	 /s/ Matt Kaltenrieder

	Name:	 	Matt Kaltenrieder
	Title:	 	Vice President
	
	 WACHOVIA BANK, NATIONAL ASSOCIATION,
 as
Custodian

		
	By:	 	 /s/ Sandy Berry

	Name:	 	Sandy Berry
	Title:	 	Vice President
	
	 JPMORGAN CHASE BANK, NATIONAL ASSOCIATION
 as Trustee

		
	By:	 	 /s/ Andrew M. Cooper

	Name:	 	Andrew M. Cooper
	Title:	 	Assistant Vice President

 [Signature Page for Amendment No. 1 to the Pooling and Servicing Agreement] 

 Exhibit K 
 FORM OF ADVANCE FACILITY NOTICE 
 [date] 
 JPMorgan Chase Bank, National Association 
 4 New York Plaza, 6th Floor 
 New York, NY 10004-2477 
 Attention: Worldwide Securities Services/ Global
Debt - NovaStar Series 2003-4 
  

	 	Re:	Pooling and Servicing Agreement, dated as of November 1, 2003, by and among NovaStar Mortgage Funding Corporation (the “Company”), NovaStar Mortgage, Inc., as seller
and servicer (the “Seller” or “Servicer”), Wachovia Bank, National Association, as custodian (the “Custodian”) and JPMorgan Chase Bank, National Association (formerly known as JPMorgan Chase Bank), as trustee (the
“Trustee”) as amended by Amendment No. 1, dated as of August 1, 2005 (as amended, the “Agreement”) 

 In accordance with Section 3.26(a) of the above-captioned Agreement, the undersigned hereby notifies the Trustee of the following information: 
 (a) The Servicer has entered into an Advance Facility. 
 (b) The Advancing Person is
[                    ]. 
 (c)
[                    ], as the Servicer’s Assignee, has the right to make withdrawals from the Collection Account subject to
Section 3.26(b) of the Agreement to reimburse previously unreimbursed Advances and/or Servicing Advances pursuant to Section 3.07 of the Agreement. 
 [Remainder of Page Intentionally Left Blank] 

 Capitalized words and phrases used herein shall have the respective meanings assigned to them in the
above-captioned Agreement. 
  

			
	 NOVASTAR MORTGAGE INC.
 as
Servicer

		
	 By:
	 	  

	 Name:
	 	
	 Title:
	 	
	
	[                                      
  ]
	as Advancing Person
		
	 By:
	 	  

	 Name:
	 	
	 Title:
	 	

 The undersigned hereby acknowledges receipt of this notice pursuant to
Section 3.26(a) of the Agreement. 
 ACKNOWLEDGED AND AGREED: 
 JPMORGAN CHASE BANK, 
 NATIONAL ASSOCIATION, 
 not in its individual capacity but solely 
 as Trustee 
  

			
	 By:
	 	  

	 Name:
	 	
	 Title:
	 	

 Exhibit L 
 FORM OF WRITTEN NOTICE TO THE TRUSTEE 
 JPMorgan Chase Bank, National Association 
 4 New York Plaza, 6th Floor 
 New York, NY 10004-2477 
 Attention: Worldwide Securities Services/ Global Debt - NovaStar Series 2003-4 
  

	 	Re:	Pooling and Servicing Agreement, dated as of November 1, 2003, by and among NovaStar Mortgage Funding Corporation (the “Company”), NovaStar Mortgage, Inc., as seller
and servicer (the “Seller” or “Servicer”), Wachovia Bank, National Association, as custodian (the “Custodian”) and JPMorgan Chase Bank, National Association (formerly known as JPMorgan Chase Bank), as trustee (the
“Trustee”) as amended by Amendment No. 1, dated as of August 1, 2005 (as amended, the “Agreement”) 

 In accordance with Section 3.26(a) and (b) of the above-captioned Agreement, [name of Advancing Person] hereby notifies the Trustee that [name of Advancing Person] has [purchased][funded][an Advance]/[a Servicing Advance] and is
entitled to reimbursement from the Trustee pursuant to the terms of the Advance Facility. 
 (a) The amount of the reimbursement owed is an
amount equal to $[                    ]. 
 (b) Section [    ] of the Agreement permits this [Advance]/[Servicing Advance] to be reimbursed. 
 (c)
Section [    ] of the Advance Facility entitles [name of Advancing Person] to request reimbursement from the Trust, rather than from the Servicer. 
 (d) [name of Advancing Person]’s wire transfer instructions are as follows: 
 [insert wire transfer instructions] 
 (e) [Proof of Event of Default under the Advance
Facility, if applicable.] 
 [Remainder of the Page Intentionally Left Blank] 

 Capitalized words and phrases used herein shall have the respective meanings assigned to them in the
above-captioned Agreement. 
  

			
	 [                                      
  ]
 as Advancing Person

		
	 By:
	 	  

	 Name:
	 	
	 Title:
	 	

 ACKNOWLEDGED AND AGREED: 
  

			
	 NOVASTAR MORTGAGE INC.,
 as Servicer

		
	 By:
	 	  

	 Name:
	 	
	 Title:

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