Document:

Benton-Franklin
      Council of Governments

    

    
      	
              1622
                Terminal Drive

            	
              Phone:
                (509) 943-9185

            
	
              P.O.
                Box 217

            	
              Fax:
                (509) 943-6756

            
	
              Richland,
                WA 99352

            	
              Website:
                www.benton-franklin.cog.wa.us

            

    

    

    

    September
      26, 2006

    

    DeCoria,
      Maichel & Teague, P.S.

    1105
      W.
      Francis, Ste A

    Spokane,
      WA 99205

    

    Re:
      IsoRay Medical, Inc. Loan

    

    Gentlemen:

    

    This
      letter will serve as notice and confirmation that Benton Franklin Economic
      Development District will waive enforcement of the following non-compliance
      loan
      covenant between itself and IsoRay Medical, Inc.

    

    	·  	
            (a)
              As defined by generally accepted accounting principles, the Borrower
              will
              not allow its net working capital position ratio of current assets
              to
              current liabilities to be less than 1.3 to
              1.0.

          

    	·  	
            (g)
              It will not pay annual compensation to its officers, directors (or
              family
              members of its officers, directors, or to any salaried individual,)
              in
              excess of One Hundred Thousand Dollars ($100,000) annually for all
              of said
              persons combined during the life of the
              loan.

          

    	·  	
            (h)
              It will not purchase fixed assets or incur any additional long-term
              lease
              and lease-purchase obligations which require aggregate annual payments
              exceeding twenty-four Thousand Dollars ($24,000) per year. No fixed
              asset
              expenditures shall be made or lease ore lease-purchase obligations
              incurred, the result of which would be to reduce Borrower’s
              ratio of current assets to current liabilities below 1.3 to 1.0 subject
              to
              re-negotiation, depending upon the need and to be reviewed by
              BFEDD.

          

    	·  	
            (i)
              It will not permit its consolidated ratio of long-term debt (including
              long-term lease and lease-purchase obligations that shall be capitalized
              for the purposed of this Agreement) to equity (including subordinated
              debt) to exceed at any time 3.0 to 1.0. Borrower certifies that there
              is
              currently no long-term debt except as may be disclosed on page 2
              hereinabove.

          

    	·  	
            (j)
              It will not purchase, retire, or acquire, except by gift, any of its
              ownership interest, and it will not merge with any other corporation
              of
              business entity except as approved by the BFEDD except in the case
              of the
              normal sale or acquiring of stock.

          

    

    This
      action is valid as of March 31, 2006, and through June 30, 2007.

    
      	 	 	 	 
	Sincerely, 	 	 	 
	 	 	 	 
	 	 	 	 
	/s/
              Dante L.
              Montoya	 	 	
            
	
              

              Gwen
                Luper

              Executive
                Director

              Benton
                Franklin Economic Development DistrictUnassociated Document

    EXECUTION

     

    
      

      

    

     

    GREENWICH
      CAPITAL ACCEPTANCE, INC.,

    Depositor

    

    GREENWICH
      CAPITAL FINANCIAL PRODUCTS, INC.,

    Seller

    

    WELLS
      FARGO BANK, N.A.,

    Master
      Servicer and Securities Administrator

    

    CLAYTON
      FIXED INCOME SERVICES INC.,

    Credit
      Risk Manager

    

    and

    

    DEUTSCHE
      BANK NATIONAL TRUST COMPANY,

    Trustee
      and Custodian

     

    POOLING
      AND SERVICING AGREEMENT

     

    Dated
      as
      of August 1, 2006

     

      
        

      

       

    

    DSLA
      Mortgage Loan Trust

    Mortgage
      Loan Pass-Through Certificates, Series 2006-AR2

     

    
      

      

    

    
      
        
        

      

      
        
        

        
          

        

      

       

    

    Table
      of Contents

     

    
      	 	
              Page

            
	 	 
	
              ARTICLE
                I DEFINITIONS; DECLARATION OF TRUST

            	
              4

            
	 	 
	
              SECTION
                1.01. Defined Terms.

            	
              4

            
	
              SECTION
                1.02. Accounting.

            	
              53

            
	 	 
	
              ARTICLE
                II CONVEYANCE OF MORTGAGE LOANS; ORIGINAL ISSUANCE OF
                CERTIFICATES

            	
              53

            
	 	 
	
              SECTION
                2.01. Conveyance of Mortgage Loans.

            	
              53

            
	
              SECTION
                2.02. Acceptance by Trustee.

            	
              60

            
	
              SECTION
                2.03. Repurchase or Substitution of Mortgage Loans by the Originator
                and
                the Seller.

            	
              61

            
	
              SECTION
                2.04. Representations and Warranties of the Seller with Respect to
                the
                Mortgage Loans.

            	
              65

            
	
              SECTION
                2.05. [Reserved].

            	
              68

            
	
              SECTION
                2.06. Representations and Warranties of the Depositor.

            	
              68

            
	
              SECTION
                2.07. Issuance of Certificates.

            	
              69

            
	
              SECTION
                2.08. Representations and Warranties of the Seller.

            	
              69

            
	
              SECTION
                2.09. Covenants of the Seller.

            	
              71

            
	 	 
	
              ARTICLE
                III ADMINISTRATION AND MASTER SERVICING OF THE MORTGAGE LOANS; CREDIT
                RISK
                MANAGER

            	
              72

            
	 	 
	
              SECTION
                3.01. Master Servicer to Service and Administer the Mortgage
                Loans.

            	
              72

            
	
              SECTION
                3.02. REMIC-Related Covenants.

            	
              73

            
	
              SECTION
                3.03. Monitoring of Servicer.

            	
              73

            
	
              SECTION
                3.04. Fidelity Bond.

            	
              74

            
	
              SECTION
                3.05. Power to Act; Procedures.

            	
              75

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

            	
              76

            
	
              SECTION
                3.07. Release of Mortgage Files.

            	
              76

            
	
              SECTION
                3.08. Documents, Records and Funds in Possession of Master Servicer
                to be
                Held for Trust Fund.

            	
              77

            
	
              SECTION
                3.09. Standard Hazard Insurance and Flood Insurance
                Policies.

            	
              78

            
	
              SECTION
                3.10. Presentment of Claims and Collection of Proceeds.

            	
              78

            
	
              SECTION
                3.11. Maintenance of the Primary Insurance Policies.

            	
              79

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

            	
              79

            
	
              SECTION
                3.13. Realization Upon Defaulted Mortgage Loans.

            	
              80

            
	
              SECTION
                3.14. Additional Compensation to the Master Servicer.

            	
              80

            
	
              SECTION
                3.15. REO Property.

            	
              80

            
	
              SECTION
                3.16. Assessments of Compliance and Attestation Reports.

            	
              81

            
	
              SECTION
                3.17. Annual Compliance Statement.

            	
              83

            
	
              SECTION
                3.18. Sarbanes-Oxley Certification.

            	
              84

            
	
              SECTION
                3.19. Reports Filed with Securities and Exchange
                Commission.

            	
              84

            

    

     

    
      
        
        

      

      
        i

        
          

        

      

      
        
        

      

    

     

    
      	
              SECTION
                3.20. Additional Information.

            	
              90

            
	
              SECTION
                3.21. Intention of the Parties and Interpretation.

            	
              90

            
	
              SECTION
                3.22. Indemnification.

            	
              91

            
	
              SECTION
                3.23. [Reserved].

            	
              91

            
	
              SECTION
                3.24. [Reserved].

            	
              91

            
	
              SECTION
                3.25. [Reserved].

            	
              91

            
	
              SECTION
                3.26. [Reserved].

            	
              91

            
	
              SECTION
                3.27. Closing Opinion of Counsel.

            	
              91

            
	
              SECTION
                3.28. [Reserved].

            	
              92

            
	
              SECTION
                3.29. Merger or Consolidation of the Master Servicer.

            	
              92

            
	
              SECTION
                3.30. Indemnification of the Trustee, the Master Servicer and the
                Securities Administrator.

            	
              92

            
	
              SECTION
                3.31. Limitations on Liability of the Master Servicer and Others;
                Indemnification of Trustee and Others.

            	
              93

            
	
              SECTION
                3.32. Master Servicer Not to Resign.

            	
              94

            
	
              SECTION
                3.33. Successor Master Servicer.

            	
              95

            
	
              SECTION
                3.34. Sale and Assignment of Master Servicing.

            	
              95

            
	
              SECTION
                3.35. Reporting Requirements of the Commission.

            	
              96

            
	
              SECTION
                3.36. Duties of the Credit Risk Manager.

            	
              96

            
	
              SECTION
                3.37. Limitation Upon Liability of the Credit Risk
                Manager.

            	
              96

            
	
              SECTION
                3.38. Removal of Credit Risk Manager.

            	
              97

            
	 	 
	
              ARTICLE
                IV ACCOUNTS

            	
              97

            
	 	 
	
              SECTION
                4.01. Servicing Accounts.

            	
              97

            
	
              SECTION
                4.02. Distribution Account.

            	
              98

            
	
              SECTION
                4.03. Permitted Withdrawals and Transfers from the Distribution
                Account.

            	
              100

            
	
              SECTION
                4.04. [Reserved].

            	
              102

            
	
              SECTION
                4.05. Certificate Insurance Policy.

            	
              102

            
	
              SECTION
                4.06. Prefunding Account.

            	
              105

            
	 	 
	
              ARTICLE
                V FLOW OF FUNDS

            	
              106

            
	 	 
	
              SECTION
                5.01. Distributions.

            	
              106

            
	
              SECTION
                5.02. Allocation of Net Deferred Interest.

            	
              114

            
	
              SECTION
                5.03. Allocation of Realized Losses.

            	
              114

            
	
              SECTION
                5.04. Statements.

            	
              115

            
	
              SECTION
                5.05. Remittance Reports; Advances.

            	
              119

            
	
              SECTION
                5.06. Compensating Interest Payments.

            	
              119

            
	
              SECTION
                5.07. Basis Risk Reserve Fund.

            	
              119

            
	
              SECTION
                5.08. Recoveries.

            	
              120

            
	
              SECTION
                5.09. The Final Maturity Reserve Trust.

            	
              121

            
	 	 
	
              ARTICLE
                VI THE CERTIFICATES

            	
              122

            
	 	 
	
              SECTION
                6.01. The Certificates.

            	
              122

            
	
              SECTION
                6.02. Registration of Transfer and Exchange of
                Certificates.

            	
              123

            
	
              SECTION
                6.03. Mutilated, Destroyed, Lost or Stolen Certificates.

            	
              131

            
	
              SECTION
                6.04. Persons Deemed Owners.

            	
              131

            

    

     

    
      
        
        

      

      
        ii

        
          

        

      

      
        
        

      

    

     

    
      	
              SECTION
                6.05. Appointment of Paying Agent.

            	
              131

            
	 	 
	
              ARTICLE
                VII DEFAULT

            	
              132

            
	 	 
	
              SECTION
                7.01. Event of Default.

            	
              132

            
	
              SECTION
                7.02. Trustee to Act.

            	
              134

            
	
              SECTION
                7.03. Waiver of Event of Default.

            	
              135

            
	
              SECTION
                7.04. Notification to Certificateholders.

            	
              136

            
	 	 
	
              ARTICLE
                VIII THE TRUSTEE AND THE SECURITIES ADMINISTRATOR

            	
              136

            
	 	 
	
              SECTION
                8.01. Duties of the Trustee and the Securities
                Administrator.

            	
              136

            
	
              SECTION
                8.02. Certain Matters Affecting the Trustee and the Securities
                Administrator.

            	
              138

            
	
              SECTION
                8.03. Trustee and the Securities Administrator Not Liable for Certificates
                or Mortgage Loans.

            	
              139

            
	
              SECTION
                8.04. Trustee, Custodian, Master Servicer and Securities Administrator
                May
                Own Certificates.

            	
              140

            
	
              SECTION
                8.05. Trustee’s and Securities Administrator’s Fees and
                Expenses.

            	
              141

            
	
              SECTION
                8.06. Eligibility Requirements for Trustee and Securities
                Administrator.

            	
              141

            
	
              SECTION
                8.07. Resignation or Removal of Trustee and Securities
                Administrator.

            	
              142

            
	
              SECTION
                8.08. Successor Trustee and Successor Securities
                Administrator.

            	
              143

            
	
              SECTION
                8.09. Merger or Consolidation of Trustee or Securities
                Administrator.

            	
              144

            
	
              SECTION
                8.10. Appointment of Co-Trustee or Separate Trustee.

            	
              144

            
	
              SECTION
                8.11. Limitation of Liability.

            	
              145

            
	
              SECTION
                8.12. Trustee May Enforce Claims Without Possession of
                Certificates.

            	
              145

            
	
              SECTION
                8.13. Suits for Enforcement.

            	
              146

            
	
              SECTION
                8.14. Waiver of Bond Requirement.

            	
              146

            
	
              SECTION
                8.15. Waiver of Inventory, Accounting and Appraisal
                Requirement.

            	
              146

            
	
              SECTION
                8.16. Appointment of Custodians.

            	
              147

            
	 	 
	
              ARTICLE
                IX REMIC ADMINISTRATION

            	
              147

            
	 	 
	
              SECTION
                9.01. REMIC Administration.

            	
              147

            
	
              SECTION
                9.02. Prohibited Transactions and Activities.

            	
              150

            
	 	 
	
              ARTICLE
                X TERMINATION

            	
              150

            
	 	 
	
              SECTION
                10.01. Termination.

            	
              150

            
	
              SECTION
                10.02. Additional Termination Requirements.

            	
              153

            
	
              SECTION
                10.03. NIMS Insurer Optional Repurchase Right of Distressed Mortgage
                Loans.

            	
              154

            
	 	 
	
              ARTICLE
                XI DISPOSITION OF TRUST FUND ASSETS

            	
              154

            
	 	 
	
              SECTION
                11.01. Disposition of Trust Fund Assets.

            	
              154

            
	 	 
	
              ARTICLE
                XII MISCELLANEOUS PROVISIONS

            	
              154

            
	 	 
	
              SECTION
                12.01. Amendment.

            	
              154

            
	
              SECTION
                12.02. Recordation of Agreement; Counterparts.

            	
              156

            
	
              SECTION
                12.03. Limitation on Rights of Certificateholders.

            	
              156

            
	
              SECTION
                12.04. Governing Law; Jurisdiction.

            	
              157

            

    

     

    
      
        
        

      

      
        iii

        
          

        

      

      
        
        

      

    

     

    
      	
              SECTION
                12.05. Notices.

            	
              158

            
	
              SECTION
                12.06. Severability of Provisions.

            	
              158

            
	
              SECTION
                12.07. Article and Section References.

            	
              159

            
	
              SECTION
                12.08. Notice to the Rating Agencies.

            	
              159

            
	
              SECTION
                12.09. Further Assurances.

            	
              160

            
	
              SECTION
                12.10. Benefits of Agreement.

            	
              160

            
	
              SECTION
                12.11. Acts of Certificateholders.

            	
              161

            
	
              SECTION
                12.12. Successors and Assigns.

            	
              161

            
	
              SECTION
                12.13. Provision of Information.

            	
              161

            

    

     

    
      	
              EXHIBITS
                AND SCHEDULES:

            	 
	 	 
	
              Exhibit
                A

            	
              Form
                of Senior Certificate

            	
               

            
	
              Exhibit
                B

            	
              Form
                of Subordinate Certificate

            	
               

            
	
              Exhibit
                C-1

            	
              Form
                of Class C Certificate

            	
               

            
	
              Exhibit
                C-2

            	
              Form
                of Class P Certificate

            	
               

            
	
              Exhibit
                C-3

            	
              Form
                of Class R Certificate

            	
               

            
	
              Exhibit
                D

            	
              Form
                of Reverse Certificate

            	
               

            
	
              Exhibit
                E

            	
              [Reserved]

            	
               

            
	
              Exhibit
                F

            	
              Request
                for Release

            	
               

            
	
              Exhibit
                G-1

            	
              Form
                of Receipt of Mortgage Note

            	
               

            
	
              Exhibit
                G-2

            	
              Form
                of Interim Certification of Trustee

            	
               

            
	
              Exhibit
                G-3

            	
              Form
                of Final Certification of Trustee

            	
               

            
	
              Exhibit
                H

            	
              Form
                of Lost Note Affidavit

            	
               

            
	
              Exhibit
                I-1

            	
              Form
                of ERISA Representation for Residual Certificate

            	
               

            
	
              Exhibit
                I-2

            	
              Form
                of ERISA Representation for ERISA Restricted Trust
                Certificates

            	
               

            
	
              Exhibit
                J-1

            	
              Form
                of Investment Letter [Non-Rule 144A]

            	
               

            
	
              Exhibit
                J-2

            	
              Form
                of Rule 144A Investment Letter

            	
               

            
	
              Exhibit
                K

            	
              Form
                of Transferor Certificate

            	
               

            
	
              Exhibit
                L

            	
              Transfer
                Affidavit for Residual Certificate Pursuant to Section
                6.02(e)

            	
               

            
	
              Exhibit
                M

            	
              Certificate
                Insurance Policy

            	
               

            
	
              Exhibit
                N

            	
              List
                of Servicers and Servicing Agreements

            	
               

            
	
              Exhibit
                O

            	
              Transaction
                Parties

            	
               

            
	
              Exhibit
                P

            	
              Form
                of Subsequent Transfer Agreement

            	
               

            
	
              Exhibit
                Q

            	
              Servicing
                Criteria

            	
               

            
	
              Exhibit
                R

            	
              Additional
                Form 10-D Disclosure

            	
               

            
	
              Exhibit
                S

            	
              Additional
                Form 10-K Disclosure

            	
               

            
	
              Exhibit
                T

            	
              Additional
                Form 8-K Disclosure

            	
               

            
	
              Exhibit
                U

            	
              Additional
                Disclosure Notification

            	
               

            
	 	 	 
	
              Schedule
                I

            	
              Mortgage
                Loan Schedule

            	 

    

     

    
      
        
        

      

      
        iv

        
          

        

      

      
        
        

      

    

    This
      Pooling and Servicing Agreement is dated as of August 1, 2006 (the “Agreement”),
      among
      GREENWICH CAPITAL ACCEPTANCE, INC., a Delaware corporation, as depositor (the
      “Depositor”),
      GREENWICH CAPITAL FINANCIAL PRODUCTS, INC., a New York corporation, as seller
      (the “Seller”),
      WELLS
      FARGO BANK, N.A., a national banking association, as master servicer (in such
      capacity, the “Master
      Servicer”)
      and as
      securities administrator (in such capacity, the “Securities
      Administrator”),
      CLAYTON FIXED INCOME SERVICES INC., as credit risk manager (the “Credit Risk
      Manager”) and DEUTSCHE BANK NATIONAL TRUST COMPANY, a national banking
      association, as trustee and custodian (the “Trustee”).

     

    PRELIMINARY
      STATEMENT: 

     

    Through
      this Agreement, the Depositor intends to cause the issuance and sale of the
      DSLA
      Mortgage Loan Trust Mortgage Loan Pass-Through Certificates, Series 2006-AR2
      (the “Certificates”)
      representing in the aggregate the entire beneficial ownership of the Trust
      Fund,
      the primary assets of which are the Mortgage Loans (as defined
      below).

     

    The
      Depositor intends to sell the Certificates, to be issued hereunder in multiple
      classes, which in the aggregate will evidence the entire beneficial ownership
      interest in the Trust Fund. The Certificates will consist of seventeen classes
      of certificates, designated as (i) the Class 1A-1A Certificates, (ii) the Class
      1A-1B Certificates, (iii) the Class 2A-1A Certificates, (iv) the Class 2A-1B1
      Certificates, (v) the Class 2A-1B2, (vi) the Class 2A-1B3, (vii) the Class
      2A-1C, (viii) the Class M-1 Certificates, (ix) the Class M-2 Certificates,
      (x)
      Class M-3 Certificates, (xi) the Class M-4 Certificates, (xii) the Class M-5
      Certificates, (xiii) the Class M-6 Certificates, (xiv) the Class M-7
      Certificates, (xv) the Class C Certificates, (xvi) the Class P Certificates
      and
      (xvii) the Class R Certificates.

     

    For
      federal income tax purposes, the Trust Fund (exclusive of the Prefunding
      Account, the assets held in the Basis Risk Reserve Fund, the Final Maturity
      Reserve Trust and the Final Maturity Reserve Account (the “Excluded
      Trust Property”))
      comprises three REMICs in a tiered REMIC structure: the “Pooling REMIC,” the
“Lower-Tier
      REMIC”
and
      the
“Upper-Tier
      REMIC.”
Each
      Certificate, other than the Class R Certificate, shall represent ownership
      of a
      regular interest in the Upper-Tier REMIC, as described herein. The LIBOR
      Certificates also
      represent the right to receive (i) payments in respect of the Final Maturity
      Reserve Account and (ii) payments in respect of Basis Risk Shortfalls from
      the
      Basis Risk Reserve Fund as provided in Section 5.07. The owners of the Class
      C
      Certificates beneficially own the Basis Risk Reserve Fund, the Final Maturity
      Reserve Account and the Final Maturity Reserve Trust. The Class R Certificate
      represents the sole class of residual interest in the Upper-Tier
      REMIC.

     

    The
      Pooling REMIC will hold as its assets all of the assets constituting the Trust
      Fund (exclusive of the Excluded Trust Property) and will issue interests (the
      “Pooling
      REMIC Regular Interests”)
      (which
      will be uncertificated and will represent the regular interests in the Pooling
      REMIC) and a residual interest (the “Class PT-R Interest”) which will also be
      uncertificated and which will represent the sole class of residual interest
      in
      the Pooling REMIC. The Trustee will hold the Pooling REMIC Regular Interests
      as
      assets of the Lower-Tier REMIC. 

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    The
      Lower-Tier REMIC will hold as its assets the Pooling REMIC Regular Interests
      and
      will issue interests (the “Lower-Tier
      Regular Interests”)
      (which
      will be uncertificated and will represent the regular interests in the
      Lower-Tier REMIC) and a residual interest (the “Class LT-R Interest”) which will
      also be uncertificated and which will represent the sole class of residual
      interest in the Lower-Tier REMIC. The Trustee will hold the Lower-Tier Regular
      Interests as assets of the Upper-Tier REMIC. 

     

    For
      purposes of the REMIC Provisions, the startup day for each REMIC created hereby
      is the Closing Date. All REMIC regular and residual interests created hereby
      will be retired on or before the Latest Possible Maturity Date.

     

    Pooling
      REMIC Interests

     

    
      	
              Designation

            	 	
              Interest
                Rate

            	 	
              Initial
                Principal Balance

            	 	
              Related
                group

            	 
	
              PT-1

            	 	 	
              (1)

            	
               

            	
              $

            	
              434,287,068.08

            	 	 	
              Group
                1

            	 
	
              PT-1-PF

            	 	 	
              (2)

            	
               

            	
              $

            	
              91,827,627.00

            	 	 	
              Group
                1

            	 
	
              PT-1-X

            	 	 	
              (3)

            	
               

            	 	
              (3)

            	
               

            	 	
              Group
                1

            	 
	
              PT-2

            	 	 	
              (1)

            	
               

            	
              $

            	
              580,236,361.30

            	 	 	
              Group
                2

            	 
	
              PT-2-PF

            	 	 	
              (2)

            	
               

            	
              $

            	
              103,648,944.00

            	 	 	
              Group
                2

            	 
	
              PT-2-X

            	 	 	
              (3)

            	
               

            	 	
              (3)

            	
               

            	 	
              Group
                2

            	 
	
              PT-R

            	 	 	
              (4)

            	
               

            	 	
              (4)

            	
               

            	 	
              N/A

            	 

    

    

     

    
      	(1)  	
              The
                interest rate with respect to the first three Distribution Dates
                (and the
                related Accrual Periods) for each of these Pooling REMIC Interests
                is a
                per annum rate equal to the weighted average of the Net Loan Rates
                on the
                first day of the related Due Period of only those Mortgage Loans
                in the
                related Loan Group that are Initial Mortgage Loans, weighted on the
                basis
                of their Stated Principal Balances as of the first day of the related
                Due
                Period. For each Distribution Date (and related Accrual Period)
                thereafter, the interest rate for each of these Pooling REMIC Interests
                shall be the Net WAC of the related Loan
                Group.

            

    

     

    
      	(2)  	
              For
                the first three Distribution Dates (and the related Accrual Periods)
                each
                of these Pooling REMIC Interests shall not accrue interest on their
                principal balances, but shall be etitled to a specified portion of
                the
                interest that accrues on each Additional Mortgage Loan at a per annum
                rate
                equal to the excess, if any, of the Net Loan Rate for such Mortgage
                Loan
                over the rate at which interest is payable on such Mortgage Loan
                (i.e.,
                the Deferred Interest on the Mortgage Loan). For each Distribution
                Date
                (and related Accrual Period) thereafter, the interest rate for each
                of
                these Pooling REMIC Interests shall be the Net WAC of the related
                Loan
                Group.

            

    

     

    
      	(3)  	
              Each
                of these Pooling REMIC Interests is an interest-only interest that
                does
                not have a principal balance. For each of the first three Distribution
                Dates (and the related Accrual Periods) each of these Pooling REMIC
                Interests shall be entitled to 100% of the interest payable at the
                end of
                the related Due Period at the applicable Net Loan Rate on each Mortgage
                Loan in the related Loan Group that is an Additional Mortgage Loan.
                For
                each Distribution Date thereafter, each of these Pooling REMIC Interests
                shall not be entitled to further distributions.

            

    

     

    
      	(4)  	
              The
                PT-R Interest is the sole residual interest in the Pooling REMIC.
                Ownership of the PT-R Interest is represented by the Class R Certificate.
                

            

    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    On
      each
      Distribution Date, Available Funds for all Loan Groups shall be allocated among
      the Pooling REMIC Interests in the following order of priority:

    

    
      	(i)  	
              First,
                to each of the PT-1 and PT-2 Interests, in reduction of their principal
                balances, an amount sufficient to cause the principal balance of
                each such
                Pooling REMIC Interest to equal the aggregate of the Stated Principal
                Balances at the end of the related Due Period, after taking into
                account
                payments made during such Due Period, of the Mortgage Loans in the
                related
                Loan Group that are Initial Mortgage
                Loans;

            

    

    

    
      	(ii)  	
              Second,
                to each of the PT-1-PF and PT-2-PF Interests, in reduction of their
                principal balances, an amount sufficient to cause the principal balance
                of
                each such Pooling REMIC Interest to equal the excess of the Pool
                Collateral Balance for the related Loan Group at the end of the related
                Due Period, after taking into account payments made during such Due
                Period, over the principal balance of the PT-1 Interest, in the case
                of
                Loan Group 1, and the PT-2 Interests, in the case of Loan Group
                2;

            

    

    

    
      	(iii)  	
              Third,
                to make interest distributions on the Pooling REMIC Interests at
                the
                interest rates described above, provided,
                however,
                that any Net Deferred Interest for any Loan Group shall be allocated
                among
                and shall increase the principal balances of the Pooling REMIC Interests
                in the same order of priority in which principal is distributed pursuant
                to priorities (i) and (ii) above;

            

    

    

    
      	(iv)  	
              Finally,
                any remaining amounts to the PT-R
                Interest.

            

    

    

    On
      any
      Distribution Date, after all distributions of Available Funds on such date,
      Realized Losses shall be allocated among the Pooling REMIC Interests in the
      same
      order of priority in which principal is distributed among such Pooling REMIC
      Interests pursuant to priorities (i) and (ii) above.

    

    On
      each
      Distribution Date, Prepayment Penalty Amounts with respect to Loan Group 1
      and
      Loan Group 2 shall be distributed to the PT-1 Interest and the PT-2 Interest,
      respectively.

     

    Lower-Tier
      REMIC

     

    The
      following table sets forth (or describes) the designation, interest rate, and
      initial principal balance of each Lower-Tier Interest in the Lower-Tier REMIC,
      each of which, other than the LT-R Lower-Tier Interest) is hereby designated
      as
      a regular interest in the Lower-Tier REMIC (the “Lower-Tier Regular
      Interests):

     

    
      	
               

              Designation

            	 	
               

              Interest
                Rate

            	 	
              Initial
                Principal

              Balance

            	 	
              Corresponding
                Class of Certificate

            	 
	
              LT-1A-1A

            	 	 	
              (1)

            	
               

            	
              $

            	
              170,974,000.00

            	 	 	
              1A-1A

            	 
	
              LT-1A-1B

            	 	 	
              (1)

            	
               

            	
              $

            	
              73,274,500.00

            	 	 	
              1A-1B

            	 
	
              LT-2A-1A

            	 	 	
              (1)

            	
               

            	
              $

            	
              190,496,500.00

            	 	 	
              2A-1A

            	 
	
              LT-2A-1B1

            	 	 	
              (1)

            	
               

            	
              $

            	
              36,301,500.00

            	 	 	
              2A-1B1

            	 
	
              LT-2A-1B2

            	 	 	
              (1)

            	
               

            	
              $

            	
              18,012,500.00

            	 	 	
              2A-1B2

            	 

    

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

      

     

    
      	
              Designation

            	 	 	
              Interest
                Rate 

            	 	 	
              Initial
                Principal

              Balance 

            	 	 	
              Corresponding
                Class of Certificate 

            	 
	
              LT-2A-1B3

            	 	 	
              (1)

            	
               

            	
              $

            	
              25,059,500.00

            	 	 	
              2A-1B3

            	 
	
              LT-2A-1C

            	 	 	
              (1)

            	
               

            	
              $

            	
              47,624,000.00

            	 	 	
              2A-1C

            	 
	
              LT-M-1

            	 	 	
              (1)

            	
               

            	
              $

            	
              16,335,000.00

            	 	 	
              M-1

            	 
	
              LT-M-2

            	 	 	
              (1)

            	
               

            	
              $

            	
              6,957,500.00

            	 	 	
              M-2

            	 
	
              LT-M-3

            	 	 	
              (1)

            	
               

            	
              $

            	
              3,630,000.00

            	 	 	
              M-3

            	 
	
              LT-M-4

            	 	 	
              (1)

            	
               

            	
              $

            	
              3,327,500.00

            	 	 	
              M-4

            	 
	
              LT-M-5

            	 	 	
              (1)

            	
               

            	
              $

            	
              3,630,000.00

            	 	 	
              M-5

            	 
	
              LT-M-6

            	 	 	
              (1)

            	
               

            	
              $

            	
              3,025,000.00

            	 	 	
              M-6

            	 
	
              LT-M-7

            	 	 	
              (1)

            	
               

            	
              $

            	
              3,327,500.00

            	 	 	
              M-7

            	 
	
              LT-Q

            	 	 	
              (1)

            	
               

            	
              $

            	
              608,025,000.38

            	 	 	
              N/A

            	 
	
              LT-I

            	 	 	
              (2)

            	
               

            	 	
              (2)

            	
               

            	 	
              N/A

            	 
	
              LT-R

            	 	 	
              (3)

            	
               

            	 	
              (3)

            	
               

            	 	
              N/A

            	 

    

     

    
      

    

    
      	(1)  	
              The
                interest rate with respect to any Distribution Date (and the related
                Accrual Period) for each of these Lower-Tier Regular Interests is
                a per
                annum rate equal to the Net WAC. 

            

    

     

    
      	(2)  	
              The
                LT-I Interest is an interest only interest that does not have a principal
                balance but has a notional amount as of any Distribution Date equal
                to the
                Stated Principal Balances of the Mortgage Loans as of the first day
                of the
                related Due Period (or in the case of the first Distribution Date,
                as of
                the Cut-off Date). For any Distribution Date before the Distribution
                Date
                in August 2016, and any Distribution Date on and after the Distribution
                Date in September 2026, it shall bear interest for the related Accrual
                Period at a fixed rate of 0.00%, and for each Distribution Date on
                or
                after the Distribution Date in October 2016 to and including the
                Distribution Date in August 2026, it shall bear interest for the
                related
                Accrual Period at a fixed rate equal to the Final Maturity Reserve
                Rate.
                

            

    

     

    
      	(3)  	
              The
                LT-R Interest is the sole Class of residual interest in the Lower-Tier
                REMIC. It does not have an interest rate or a principal balance.
                

            

    

     

    On
      each
      Distribution Date, Available Funds shall be distributed in payment of principal
      on the Lower-Tier Regular Interests as follows: 

     

    
      	(i)  	
              concurrently
                to the LT-1A-1A, LT-1A-1B, LT-2A-1A, LT-2A-1B1, LT-2A-1B2, LT-2A-1B3,
                LT-
                2A-1C, LT-M-1, LT-M-2, LT-M-3, LT-M-4, LT-M-5, LT-M-6, and LT-M-7
                Interests until the principal balance of each such Lower-Tier Regular
                Interest equals 50% of the Class Principal Balance of the Corresponding
                Class of Certificates immediately after such Distribution Date;
                

            

    

    

    
      	(ii)  	
              to
                the LT-Q Interest until its principal balance equals the excess,
                if any,
                of (I) the aggregate Pool Balance immediately after such Distribution
                Date
                over (II) the aggregate of the principal balances of the Lower-Tier
                Regular Interests (other than the LT-Q and the LT-I Interests) after
                taking into account distributions on such Distribution Date under
                priority
                (i) above; and 

            

    

    

    
      	(iii)  	
              finally,
                to the Lower-Tier Regular Interests, as distributions of interest
                at the
                interest rates shown in the table
                above.

            

    

    

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    On
      each
      Distribution Date, after taking into account principal distributions under
      priorities (i) and (ii) above, Realized Losses attributable to principal and
      any
      Net Deferred Interest shall each be allocated among the Lower-Tier Regular
      Interests in the same manner that principal is distributed among such Lower-Tier
      Regular Interests. 

     

    On
      each
      Distribution Date, Prepayment Penalty Amounts shall be distributed to the LT-Q
      Interest.

     

    
      ARTICLE
        I

    

     

    DEFINITIONS;
      DECLARATION OF TRUST

    
       

      SECTION
        1.01. Defined Terms.

       

      Whenever
        used in this Agreement or in the Preliminary Statement, the following words
        and
        phrases, unless the context otherwise requires, shall have the meanings
        specified in this Article. All calculations of interest described herein
        shall
        be made on the basis of an assumed 360-day year consisting of twelve 30-day
        months unless otherwise indicated in this Agreement.

       

      “Acceptable
        Successor Servicer”:
        A
        FHLMC- or FNMA-approved servicer that is (i) reasonably acceptable to the
        Master
        Servicer and (ii) acceptable to each Rating Agency, as evidenced by a letter
        from each such Rating Agency delivered to the Master Servicer and the Trustee
        that such entity’s acting as a successor servicer will not result in a
        qualification, withdrawal or downgrade of the then-current rating of any
        of the
        Certificates (without regard to the Certificate Insurance Policy).

       

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

       

      “Account”:
        The
        Distribution Account, the Final Maturity Reserve Account, the Basis Risk
        Reserve
        Fund, the Servicing Account, the Prefunding Account or the Policy Account,
        as
        the context requires.

       

      “Accrual
        Period”:
        With
        respect to each Distribution Date and the LIBOR Certificates, the period
        beginning on the immediately preceding Distribution Date (or the Closing
        Date,
        in the case of the first Distribution Date) and ending on the day immediately
        preceding such Distribution Date. Interest for such Classes will be calculated
        based upon a 360-day year and the actual number of days in each Accrual Period.
        With respect to any Distribution Date and each Lower-Tier Regular Interest,
        the
        calendar month preceding such Distribution Date. Interest for each Lower-Tier
        Regular Interest will be calculated based on a 360-day year and assuming
        each
        month has 30 days.

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

       

      “Additional
        Disclosure Notification”:
        As
        defined in Section 3.19(a).

       

      “Additional
        Form 10-D Disclosure”:
        As
        defined in Section 3.19(a).

       

      “Additional
        Form 10-K Disclosure”:
        As
        defined in Section 3.19(b).

       

      “Adjusted
        Cap Rate”:
        Any of
        the Group 1 Adjusted Cap Rate, the Group 2 Adjusted Cap Rate or the Subordinate
        Adjusted Cap Rate.

       

      “Adjusted
        Lower-Tier WAC”:
        For
        any Distribution Date (and the related Accrual Period), the product of (i)
        2
        multiplied by (ii) the weighted average
        of
        the interest rates on the
        Lower-Tier Regular Interests (other than the Class LT-I Interest), weighted
        on
        the basis of their principal balances as of the first day of the related
        Accrual
        Period and computed for this purpose by first (a) subjecting the interest
        rate
        on the LT-Q Interests to a cap of 0.00%, and (b) subjecting the interest
        rate on
        each of the LT-1A-1A, LT-1A-1B, LT-2A-1A, LT-2A-1B1, LT-2A-1B2, LT-2A-1B3,
        LT-2A-1C, LT-M-1, LT-M-2, LT-M-3, LT-M-4, LT-M-5, LT-M-6, and LT-M-7 Interests
        to a cap equal to the product of Pass-Through Rate for the Corresponding
        Class
        of Certificates for such Distribution Date multiplied by the quotient of
        the
        actual number of days in the Accrual Period divided
        by
        30.

       

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

       

      “Administrator”:
        Not
        applicable.

       

      “Advance”:
        With
        respect to any Distribution Date and any Mortgage Loan or REO Property, any
        advance made by the Master Servicer (including the Trustee in its capacity
        as
        successor Master Servicer) in respect of such Distribution Date pursuant
        to
        Section 5.05 or by the Servicer in accordance with the Servicing Agreement
        for
        such Distribution Date.

       

      “Adverse
        REMIC Event”:
        Either
        (i) the loss of status as a REMIC, within the meaning of Section 860D of
        the
        Code, for any group of assets identified as a REMIC in the Preliminary Statement
        to this Agreement, or (ii) the imposition of any tax, including the tax imposed
        under Section 860F(a)(1) on prohibited transactions and the tax imposed under
        Section 860G(d) on certain contributions to a REMIC, on any REMIC created
        hereunder to the extent such tax would be payable from assets held as part
        of
        the Trust Fund. 

       

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

       

      “Aggregate
        Premium Amount”:
        As to
        any Distribution Date and the Insured Certificates, the sum of the Class
        1A-1B
        Premium Amount and the Class 2A-1C Premium Amount for such Distribution
        Date.

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

       

      “Aggregate
        Subsequent Transfer Amount”:
        With
        respect to any Subsequent Transfer Date, the aggregate Stated Principal Balance
        as of the applicable Subsequent Cut-off Date of the Subsequent Mortgage Loans
        conveyed on such Subsequent Transfer Date, as listed on the revised Mortgage
        Loan Schedule delivered pursuant to Section 2.01(b); provided,
        however,
        that
        such amount shall not exceed the amount on deposit in the Prefunding Account
        as
        of such Subsequent Transfer Date.

       

      “Agreement”:
        This
        Pooling and Servicing Agreement dated as of August 1, 2006, as amended,
        supplemented and otherwise modified from time to time.

       

      “Allocated
        Realized Loss Amount”:
        For
        any Distribution Date and any Class of Offered Certificates, an amount equal
        the
        sum of any Realized Losses allocated to that Class of Certificates on such
        Distribution Date and any Allocated Realized Loss Amounts previously allocated
        to such Class pursuant to Section 5.03 minus
        any
        amounts distributed to such Class pursuant to Sections 5.01(a)(1)(iv) and
        (v) in
        respect of Allocated Realized Loss Amounts.

       

      “Apportioned
        Principal Balance”:
        With
        respect to any Class of Subordinate Certificates, either Loan Group and any
        Distribution Date, the Class Principal Balance of such Class immediately
        prior
        to such Distribution Date multiplied by a fraction, the numerator of which
        is
        the Subordinate Component for the related Loan Group for such date and the
        denominator of which is the sum of the Subordinate Components (in the aggregate)
        for such date.

       

      “Assignment”:
        With
        respect to any Mortgage, an assignment of mortgage, notice of transfer or
        equivalent instrument, in recordable form, which is sufficient, under the
        laws
        of the jurisdiction in which the related Mortgaged Property is located, to
        reflect or record the sale of such Mortgage.

       

      “Available
        Funds”:
        With
        respect to any Distribution Date and any Loan Group, an amount equal to
        (i) the sum, without duplication, of (a) the aggregate of the Monthly
        Payments received on or prior to the related Determination Date (excluding
        Monthly Payments due in future Due Periods but received by the related
        Determination Date) in respect of the Mortgage Loans in such Loan Group,
        (b) Net Liquidation Proceeds, Insurance Proceeds (including from primary
        mortgage insurance policies), Principal Prepayments (excluding Prepayment
        Penalty Amounts), Recoveries and other unscheduled recoveries of principal
        and
        interest in respect of the Mortgage Loans in such Loan Group received during
        the
        related Prepayment Period, (c) the aggregate of any amounts received in respect
        of REO Properties for such Distribution Date in respect of Mortgage Loans
        in
        such Loan Group, (d) the aggregate of any amounts of Interest Shortfalls
        (excluding for such purpose all shortfalls as a result of Relief Act Reductions)
        paid by the Servicer pursuant to the Servicing Agreement and Compensating
        Interest Payments deposited in the Distribution Account for that Distribution
        Date in respect of the Mortgage Loans in such Loan Group, (e) the aggregate
        of the Purchase Prices, Substitution Adjustments, Repurchase Prices and other
        amounts collected for purchases or substitutions pursuant to Section 2.03
        deposited in the Distribution Account during the related Prepayment Period
        in
        respect of the Mortgage Loans in such Loan Group, (f) the aggregate of any
        Advances made by the Servicer and Advances made by the Master Servicer for
        that
        Distribution Date in respect of the Mortgage Loans in such Loan Group,
        (g) the aggregate of any Advances made by the Trustee (as successor Master
        Servicer) for such Distribution Date pursuant to Section 7.02 hereof in respect
        of the Mortgage Loans in such Loan Group and (h) the Termination Price
        allocated to such Loan Group on the Distribution Date on which the Trust
        Fund is
        terminated and (i) with respect to the Distribution Date in the month
        immediately following the end of the Prefunding Period, any amounts remaining
        in
        the Prefunding Account (other than investment earnings thereon); minus
        (ii) the sum of (u) if there is a Deficiency Amount (i) prior to the end of
        the Prefunding Period, any amount remaining in the Prefunding Account equal
        to
        such Deficiency Amount, and (ii) in the case of the Distribution Date
        immediately following the end of the Prefunding Period, the amount released
        from
        the Prefunding Account and transferred to the Distribution Account, if any,
        equal to such Deficiency Amount, (v) to the extent of amounts attributable
        to interest, the Premium Amount payable on such Distribution Date to the
        Certificate Insurer from the applicable Loan Group, (w) to the extent of
        amounts attributable to interest, the Expense Fees for such Distribution
        Date in
        respect of the Mortgage Loans in such Loan Group, (x) to the extent of amounts
        attributable to interest or principal, as applicable, amounts in reimbursement
        for Advances previously made in respect of the Mortgage Loans in such Loan
        Group
        and other amounts as to which the Servicer, the Trustee, the Credit Risk
        Manager, the Securities Administrator, the Custodian and the Master Servicer
        are
        entitled to be reimbursed pursuant to Section 4.03, (y) first, to the extent
        of
        amounts attributable to interest , and second, if such amounts are insufficient,
        to the extent of amounts attributable to principal, the amount payable to
        the
        Trustee, the Master Servicer, the Custodian or the Securities Administrator
        pursuant to Section 8.05, Section 3.30(b) and Section 3.31(c) in respect
        of
        Mortgage Loans in such Loan Group or if not related to a Mortgage Loan,
        allocated to each Loan Group on a pro
        rata
        basis
        and (z) amounts deposited in the Distribution Account, as the case may be,
        in
        error, in respect of Mortgage Loans in such Loan Group.

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

       

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

       

      “Basis
        Risk Reserve Fund”:
        A fund
        created as part of the Trust Fund pursuant to Section 5.07 of this Agreement
        but
        which is not an asset of any of the REMICs.

       

      “Basis
        Risk Shortfall”:
        With
        respect to any Distribution Date and the LIBOR Certificates, the sum
        of:

       

      (i)  
        the
        excess, if any, of the Interest Distributable Amount that such Class would
        have
        been entitled to receive if the Pass-Through Rate for such Class were calculated
        without regard to clause (ii) in the definition thereof, over the actual
        Interest Distributable Amount such Class is entitled to receive for such
        Distribution Date;

       

      (ii) 
        any
        excess described in clause (i) above remaining unpaid from prior Distribution
        Dates; and

       

      (iii) interest
        for the applicable Accrual Period on the amount described in clause (ii)
        above
        based on the applicable Pass-Through Rate, determined without regard to clause
        (ii) in the definition thereof.

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

       

      “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 6.02
        hereof). On the Closing Date, all Classes of the Certificates other than
        the
        Physical Certificates shall be Book-Entry Certificates.

       

      “Bulk
        PMI Fee”:
        Not
        applicable.

       

      “Bulk
        PMI Fee Rate”:
        Not
        applicable.

       

      “Bulk
        PMI Policy”:
        Not
        applicable.

       

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

       

      “Call
        Option”:
        The
        right to terminate this Agreement and the Trust pursuant to the second paragraph
        of Section 10.01(a) hereof.

       

      “Call
        Option Date”:
        As
        defined in Section 10.01(a) hereof.

       

      “Certificate”:
        Any
        Regular Certificate, Residual Certificate, Class C Certificate or Class P
        Certificate.

       

      “Certificate
        Group 1”:
        At any
        time, the Group 1 Certificates.

       

      “Certificate
        Group 2”:
        At any
        time, the Group 2 Certificates.

       

      “Certificate
        Group”:
        Either
        Certificate Group 1 or Certificate Group 2, as the context
        requires.

       

      “Certificate
        Insurance Policy”:
        The
        Certificate Guaranty Insurance Policy (No. AB1021BE) with respect to the
        Insured
        Certificates, and all endorsements thereto dated the Closing Date, issued
        by the
        Certificate Insurer for the benefit of the Holders of the Insured Certificates,
        a form of which is attached hereto as Exhibit M.

       

      “Certificate
        Insurer”:
        Ambac
        Assurance Corporation, a Wisconsin domiciled stock insurance
        corporation.

       

      “Certificate
        Insurer Default”:
        The
        existence and continuance of any of the following: (a) a failure by the
        Certificate Insurer to make a payment required under the Certificate Insurance
        Policy in accordance with its terms; (b) the entry of a decree or order of
        a
        court or agency having jurisdiction in respect of the Certificate Insurer
        in an
        involuntary case under any present or future federal or state bankruptcy,
        insolvency or similar law appointing a conservator or receiver or liquidator
        or
        other similar official of the Certificate Insurer or of any substantial part
        of
        its property, or the entering of an order for the winding up or liquidation
        of
        the affairs of the Certificate Insurer and the continuance of any such decree
        or
        order undischarged or unstayed and in force for a period of 90 consecutive
        days;
        (c) the Certificate Insurer shall consent to the appointment of a conservator
        or
        receiver or liquidator or other similar official in any insolvency, readjustment
        of debt, marshaling of assets and liabilities or similar proceedings of or
        relating to the Certificate Insurer or of or relating to all or substantially
        all of its property; or (d) the Certificate Insurer shall admit in writing
        its
        inability to pay its debts generally as they become due, file a petition
        to take
        advantage of or otherwise voluntarily commence a case or proceeding under
        any
        applicable bankruptcy, insolvency, reorganization or other similar statute,
        make
        an assignment for the benefit of its creditors, or voluntarily suspend payment
        of its obligations.

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

       

      “Certificate
        Insurer Reimbursement Amount”:
        For
        any Distribution Date, the sum of (a) all amounts previously paid by the
        Certificate Insurer in respect of Insured Amounts and Preference Amounts
        for
        which the Certificate Insurer has not been reimbursed prior to such Distribution
        Date and (b) interest accrued on the foregoing at the Late Payment Rate from
        the
        date the Securities Administrator received such amounts paid by such Certificate
        Insurer to such Distribution Date.

       

      “Certificate
        Owner”:
        With
        respect to each Book-Entry Certificate, any beneficial owner thereof and
        with
        respect to each Physical Certificate, the Certificateholder
        thereof.

       

      “Certificate
        Principal Balance”:
        With
        respect to each Certificate of a given Class (other than the Class C and
        Class R
        Certificates) and any date of determination, the product of (i) the Class
        Principal Balance of such Class and (ii) the applicable Percentage Interest
        of
        such Certificate.

       

      “Certificate
        Register”
and
        “Certificate
        Registrar”:
        The
        register maintained and registrar appointed pursuant to Section 6.02 hereof,
        which initially shall be the Securities Administrator.

       

      “Certificateholder”
or
        “Holder”:
        The
        Person in whose name a Certificate is registered in the Certificate Register,
        except that a Disqualified Organization or non-U.S. Person shall not be a
        Holder
        of the Residual Certificate for any purpose hereof; provided
        that
        solely for the purposes of taking any action or giving any consent pursuant
        to
        this Agreement, any Certificate registered in the name of the Depositor,
        the
        Trustee, the Master Servicer, the NIMS Insurer, the Securities Administrator,
        the Servicer, the Credit Risk Manager or any Affiliate thereof shall be deemed
        not to be outstanding in determining whether the requisite percentage necessary
        to effect any such consent has been obtained, except that, in determining
        whether the Trustee shall be protected in relying upon any such consent,
        only
        Certificates which a Responsible Officer of the Trustee knows to be so owned
        shall be disregarded.

       

      “Certification
        Parties”:
        As
        defined in Section 3.18.

       

      “Certifying
        Person”:
        As
        defined in Section 3.18.

       

      “Class”:
        Collectively, Certificates that 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.

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

       

      “Class
        1A-1B Premium Amount”:
        With
        respect to any Distribution Date and the Class 1A-1B Certificates, the product
        of one-twelfth of the Insurer Premium Rate and the Class Principal Balance
        of
        the Class 1A-1B Certificates on the immediately preceding Distribution Date,
        or,
        in the case of the first Distribution Date, on the Closing Date, in each
        case
        after giving effect to distributions of principal made on such Distribution
        Date.

       

      “Class
        2A-1C Premium Amount”:
        With
        respect to any Distribution Date and the Class 2A-1C Certificates, the product
        of one-twelfth of the Insurer Premium Rate and the Class Principal Balance
        of
        the Class 2A-1C Certificates on the immediately preceding Distribution Date,
        or,
        in the case of the first Distribution Date, on the Closing Date, in each
        case
        after giving effect to distributions of principal made on such Distribution
        Date.

       

      “Class
        M-1 Principal Distribution Amount”:
        For
        any Distribution Date, an amount equal to the lesser of (a) the Class Principal
        Balance of the Class M-1 Certificates immediately prior to such Distribution
        Date and (b) the excess of (x) the sum of (i) the aggregate Class Principal
        Balance of the Senior Certificates (after taking into account the distribution
        of the Senior Principal Distribution Amount on such Distribution Date) and
        (ii)
        the Class Principal Balance of the Class M-1 Certificates immediately prior
        to
        such Distribution Date over (y) the lesser of (A) the product of (i) for
        each
        Distribution Date prior to September 2012, 88.875% and thereafter 91.100%
        and
        (ii) the aggregate Principal Balance of the Mortgage Loans as of the last
        day of
        the related Due Period (after giving effect to scheduled payments of principal
        due during the related Due Period, to the extent received or advanced, and
        unscheduled collections of principal received during the related Prepayment
        Period) and (B) the aggregate Principal Balance of the Mortgage Loans as
        of the
        last day of the related Due Period (after giving effect to scheduled payments
        of
        principal due during the related Due Period, to the extent received or advanced,
        and unscheduled collections of principal received during the related Prepayment
        Period) minus
        $6,050,000.

       

      “Class
        M-2 Principal Distribution Amount”:
        For
        any Distribution Date, an amount equal to the lesser of (a) the Class Principal
        Balance of the Class M-2 Certificates immediately prior to such Distribution
        Date and (b) the excess of (x) the sum of (i) the aggregate Class Principal
        Balance of the Senior Certificates (after taking into account the distribution
        of the Senior Principal Distribution Amount on such Distribution Date), (ii)
        the
        Class Principal Balance of the Class M-1 Certificates immediately prior to
        such
        Distribution Date (after taking into account the distribution of the Class
        M-1
        Principal Distribution Amount on such Distribution Date) and (iii) the Class
        Principal Balance of the Class M-2 Certificates immediately prior to such
        Distribution Date over (y) the lesser of (A) the product of (i) for each
        Distribution Date prior to September 2012, 91.750% and thereafter 93.400%
        and
        (ii) the aggregate Principal Balance of the Mortgage Loans as of the last
        day of
        the related Due Period (after giving effect to scheduled payments of principal
        due during the related Due Period, to the extent received or advanced, and
        unscheduled collections of principal received during the related Prepayment
        Period) and (B) the aggregate Principal Balance of the Mortgage Loans as
        of the
        last day of the related Due Period (after giving effect to scheduled payments
        of
        principal due during the related Due Period, to the extent received or advanced,
        and unscheduled collections of principal received during the related Prepayment
        Period) minus
        $6,050,000.

       

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

       

      “Class
        M-3 Principal Distribution Amount”:
        For
        any Distribution Date, an amount equal to the lesser of (a) the Class Principal
        Balance of the Class M-3 Certificates immediately prior to such Distribution
        Date and (b) the excess of (x) the sum of (i) the aggregate Class Principal
        Balance of the Senior Certificates (after taking into account the distribution
        of the Senior Principal Distribution Amount on such Distribution Date), (ii)
        the
        Class Principal Balance of the Class M-1 Certificates immediately prior to
        such
        Distribution Date (after taking into account the distribution of the Class
        M-1
        Principal Distribution Amount on such Distribution Date), (iii) the Class
        Principal Balance of the Class M-2 Certificates immediately prior to such
        Distribution Date (after taking into account the distribution of the Class
        M-2
        Principal Distribution Amount on such Distribution Date) and (iv) the Class
        Principal Balance of the Class M-3 Certificates immediately prior to such
        Distribution Date over (y) the lesser of (A) the product of (i) for each
        Distribution Date prior to September 2012, 93.250% and thereafter 94.600%
        and
        (ii) the aggregate Principal Balance of the Mortgage Loans as of the last
        day of
        the related Due Period (after giving effect to scheduled payments of principal
        due during the related Due Period, to the extent received or advanced, and
        unscheduled collections of principal received during the related Prepayment
        Period) and (B) the aggregate Principal Balance of the Mortgage Loans as
        of the
        last day of the related Due Period (after giving effect to scheduled payments
        of
        principal due during the related Due Period, to the extent received or advanced,
        and unscheduled collections of principal received during the related Prepayment
        Period) minus
        $6,050,000.

       

      “Class
        M-4 Principal Distribution Amount”:
        For
        any Distribution Date, an amount equal to the lesser of (a) the Class Principal
        Balance of the Class M-4 Certificates immediately prior to such Distribution
        Date and (b) the excess of (x) the sum of (i) the aggregate Class Principal
        Balance of the Senior Certificates (after taking into account the distribution
        of the Senior Principal Distribution Amount on such Distribution Date), (ii)
        the
        Class Principal Balance of the Class M-1 Certificates immediately prior to
        such
        Distribution Date (after taking into account the distribution of the Class
        M-1
        Principal Distribution Amount on such Distribution Date), (iii) the Class
        Principal Balance of the Class M-2 Certificates immediately prior to such
        Distribution Date (after taking into account the distribution of the Class
        M-2
        Principal Distribution Amount on such Distribution Date), (iv) the Class
        Principal Balance of the Class M- 3 Certificates immediately prior to such
        Distribution Date (after taking into account the distribution of the Class
        M-3
        Principal Distribution Amount on such Distribution Date) and (v) the Class
        Principal Balance of the Class M-4 Certificates immediately prior to such
        Distribution Date over (y) the lesser of (A) the product of (i) for each
        Distribution Date prior to September 2012, 94.625% and thereafter 95.700%
        and
        (ii) the aggregate principal balance of the Mortgage Loans as of the last
        day of
        the related Due Period (after giving effect to scheduled payments of principal
        due during the related Due Period, to the extent received or advanced, and
        unscheduled collections of principal received during the related Prepayment
        Period) and (B) the aggregate principal balance of the Mortgage Loans as
        of the
        last day of the related Due Period (after giving effect to scheduled payments
        of
        principal due during the related Due Period, to the extent received or advanced,
        and unscheduled collections of principal received during the related Prepayment
        Period) minus
        $6,050,000. 

       

      “Class
        M-5 Principal Distribution Amount”:
        For
        any Distribution Date, an amount equal to the lesser of (a) the Class Principal
        Balance of the Class M-5 Certificates immediately prior to such Distribution
        Date and (b) the excess of (x) the sum of (i) the aggregate Class Principal
        Balance of the Senior Certificates (after taking into account the distribution
        of the Senior Principal Distribution Amount on such Distribution Date), (ii)
        the
        Class Principal Balance of the Class M-1 Certificates immediately prior to
        such
        Distribution Date (after taking into account the distribution of the Class
        M-1
        Principal Distribution Amount on such Distribution Date), (iii) the Class
        Principal Balance of the Class M-2 Certificates immediately prior to such
        Distribution Date (after taking into account the distribution of the Class
        M-2
        Principal Distribution Amount on such Distribution Date), (iv) the Class
        Principal Balance of the Class M-3 Certificates immediately prior to such
        Distribution Date (after taking into account the distribution of the Class
        M-3
        Principal Distribution Amount on such Distribution Date), (v) the Class
        Principal Balance of the Class M-4 Certificates immediately prior to such
        Distribution Date (after taking into account the distribution of the Class
        M-4
        Principal Distribution Amount on such Distribution Date) and (vi) the Class
        Principal Balance of the Class M-5 Certificates immediately prior to such
        Distribution Date over (y) the lesser of (A) the product of (i) for each
        Distribution Date prior to September 2012, 96.125% and thereafter 96.900%
        and
        (ii) the aggregate principal balance of the Mortgage Loans as of the last
        day of
        the related Due Period (after giving effect to scheduled payments of principal
        due during the related Due Period, to the extent received or advanced, and
        unscheduled collections of principal received during the related Prepayment
        Period) and (B) the aggregate principal balance of the Mortgage Loans as
        of the
        last day of the related Due Period (after giving effect to scheduled payments
        of
        principal due during the related Due Period, to the extent received or advanced,
        and unscheduled collections of principal received during the related Prepayment
        Period) minus
        $6,050,000. 

       

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

       

      “Class
        M-6 Principal Distribution Amount”:
        For any
        Distribution Date, an amount equal to the lesser of (a) the Class Principal
        Balance of the Class M-6 Certificates immediately prior to such Distribution
        Date and (b) the excess of (x) the sum of (i) the aggregate Class Principal
        Balance of the Senior Certificates (after taking into account the distribution
        of the Senior Principal Distribution Amount on such Distribution Date), (ii)
        the
        Class Principal Balance of the Class M-1 Certificates immediately prior to
        such
        Distribution Date (after taking into account the distribution of the Class
        M-1
        Principal Distribution Amount on such Distribution Date), (iii) the Class
        Principal Balance of the Class M-2 Certificates immediately prior to such
        Distribution Date (after taking into account the distribution of the Class
        M-2
        Principal Distribution Amount on such Distribution Date), (iv) the Class
        Principal Balance of the Class M-3 Certificates immediately prior to such
        Distribution Date (after taking into account the distribution of the Class
        M-3
        Principal Distribution Amount on such Distribution Date), (v) the Class
        Principal Balance of the Class M-4 Certificates immediately prior to such
        Distribution Date (after taking into account the distribution of the Class
        M-4
        Principal Distribution Amount on such Distribution Date), (vi) the Class
        Principal Balance of the Class M-5 Certificates immediately prior to such
        Distribution Date (after taking into account the distribution of the Class
        M-5
        Principal Distribution Amount on such Distribution Date) and (vii) the Class
        Principal Balance of the Class M-6 Certificates immediately prior to such
        Distribution Date over (y) the lesser of (A) the product of (i) for each
        Distribution Date prior to September 2012, 97.375% and thereafter 97.900%
        and
        (ii) the aggregate principal balance of the Mortgage Loans as of the last
        day of
        the related Due Period (after giving effect to scheduled payments of principal
        due during the related Due Period, to the extent received or advanced, and
        unscheduled collections of principal received during the related Prepayment
        Period) and (B) the aggregate principal balance of the Mortgage Loans as
        of the
        last day of the related Due Period (after giving effect to scheduled payments
        of
        principal due during the related Due Period, to the extent received or advanced,
        and unscheduled collections of principal received during the related Prepayment
        Period) minus
        $6,050,000.

       

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

       

      “Class
        M-7 Principal Distribution Amount”:
        For
        any Distribution Date, an amount equal to the lesser of (a) the Class Principal
        Balance of the Class M-7 Certificates immediately prior to such Distribution
        Date and (b) the excess of (x) the sum of (i) the aggregate Class Principal
        Balance of the Senior Certificates (after taking into account the distribution
        of the Senior Principal Distribution Amount on such Distribution Date), (ii)
        the
        Class Principal Balance of the Class M-1 Certificates immediately prior to
        such
        Distribution Date (after taking into account the distribution of the Class
        M-1
        Principal Distribution Amount on such Distribution Date), (iii) the Class
        Principal Balance of the Class M-2 Certificates immediately prior to such
        Distribution Date (after taking into account the distribution of the Class
        M-2
        Principal Distribution Amount on such Distribution Date), (iv) the Class
        Principal Balance of the Class M-3 Certificates immediately prior to such
        Distribution Date (after taking into account the distribution of the Class
        M-3
        Principal Distribution Amount on such Distribution Date), (v) the Class
        Principal Balance of the Class M-4 Certificates immediately prior to such
        Distribution Date (after taking into account the distribution of the Class
        M-4
        Principal Distribution Amount on such Distribution Date), (vi) the Class
        Principal Balance of the Class M-5 Certificates immediately prior to such
        Distribution Date (after taking into account the distribution of the Class
        M-5
        Principal Distribution Amount on such Distribution Date) (vii) the Class
        Principal Balance of the Class M-6 Certificates immediately prior to such
        Distribution Date (after taking into account the distribution of the Class
        M-6
        Principal Distribution Amount on such Distribution Date)and (viii) the Class
        Principal Balance of the Class M-7 Certificates immediately prior to such
        Distribution Date over (y) the lesser of (A) the product of (i) for each
        Distribution Date prior to September 2012, 98.750% and thereafter 99.000%
        and
        (ii) the aggregate principal balance of the Mortgage Loans as of the last
        day of
        the related Due Period (after giving effect to scheduled payments of principal
        due during the related Due Period, to the extent received or advanced, and
        unscheduled collections of principal received during the related Prepayment
        Period) and (B) the aggregate principal balance of the Mortgage Loans as
        of the
        last day of the related Due Period (after giving effect to scheduled payments
        of
        principal due during the related Due Period, to the extent received or advanced,
        and unscheduled collections of principal received during the related Prepayment
        Period) minus
        $6,050,000.

       

      “Class
        C Distributable Amount”:
        With
        respect to any Distribution Date, the amount of interest that has accrued
        on the
        Class C Notional Balance, as described in the Preliminary Statement, but
        that
        has not been distributed pursuant to Section 5.01(a)(1)(iv)(R) hereof prior
        to
        such Distribution Date. In addition, such amount shall include the initial
        Overcollateralized Amount (less the $100 of such amount allocated to the
        Class P
        Certificates) to the extent such amount has not been distributed on prior
        Distribution Dates as part of the Overcollateralization Release
        Amount.

       

      “Class
        C Notional Balance”:
        With
        respect to any Distribution Date (and the related Accrual Period) the aggregate
        principal balance of the Lower-Tier Regular Interests (the Pool Balance)
        as
        specified in the Preliminary Statement.

       

      “Class
        LT-R Interest”:
        As
        described in the Preliminary Statement.

       

      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

       

      “Class
        P Distributable Amount”:
        With
        respect to each Distribution Date, all Prepayment Penalty Amounts in respect
        of
        the Mortgage Loans received by the Servicer for the related Prepayment
        Period.

       

      “Class
        Principal Balance”:
        As to
        any Distribution Date, with respect to any Class of Certificates (other than
        the
        Class C and Class R Certificates), the Original Class Principal Balance as
        (a)
        reduced by the sum of (x) all amounts actually distributed in respect of
        principal of that Class on all prior Distribution Dates (provided, however,
        that
        the Certificate Insurer will be subrogated to the amount of any Realized
        Losses
        paid by it to the Insured Certificates), (y) all Realized
        Losses, if any, actually
        allocated to that Class on all prior Distribution Dates and (z) in the case
        of
        the Subordinate Certificates, any applicable Writedown Amount, as increased
        by
        the amount of Deferred Interest allocated to such Class of Certificates on
        such
        Distribution Date as set forth in Section 5.02 and (b) increased pursuant
        to
        Sections 5.01(h) and 5.08; provided,
        that
        any amounts distributed to a Class in respect of Allocated Realized Loss
        Amounts
        pursuant to Sections 5.01(a)(1)(iv) and 5.01(h) will not further increase
        the
        Certificate Principal Balance of such Class. 

       

      “Class
        Subordination Percentage”:
        With
        respect to each Class of Subordinate Certificates and any Distribution Date,
        the
        percentage equivalent of a fraction the numerator of which is the Class
        Principal Balance of such Class immediately before such Distribution Date
        and
        the denominator of which is the aggregate of the Class Principal Balances
        of all
        Classes of Certificates immediately before such Distribution Date.

       

      “Close
        of Business”:
        As
        used herein, with respect to any Business Day and location, 5:00 p.m. at
        such
        location.

       

      “Closing
        Date”:
        September 12, 2006.

       

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

       

      “Commission”:
        U.S.
        Securities and Exchange Commission.

       

      “Compensating
        Interest Payment”:
        With
        respect to any Distribution Date, an amount equal to the amount, if any,
        by
        which (x) the aggregate amount of any Interest Shortfalls (excluding for
        such
        purpose all shortfalls as a result of Relief Act Reductions) required to
        be paid
        by the Servicer pursuant to the Servicing Agreement with respect to such
        Distribution Date, exceeds (y) the aggregate amount actually paid by the
        Servicer in respect of such shortfalls; provided,
        that
        such
        amount is limited to the Servicing Fee for such Distribution Date; provided,
        further,
        that
        such
        amount, to the extent payable by the Master Servicer (or the Trustee as
        successor Master Servicer), shall not exceed the aggregate Master Servicing
        Fee
        that would be payable to the Master Servicer (or the Trustee as successor
        Master
        Servicer) in respect of such Distribution Date without giving effect to any
        Compensating Interest Payment. 

       

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

       

      “Cooperative
        Corporation”:
        The
        entity that holds title (fee or an acceptable leasehold estate) to the real
        property and improvements constituting the Cooperative Property and which
        governs the Cooperative Property, which Cooperative Corporation must qualify
        as
        a Cooperative Housing Corporation under Section 216 of the Code.

       

      
        
          
          

        

        
          15

          
            

          

        

        
          
          

        

      

       

      “Cooperative
        Loan”:
        Any
        Mortgage Loan secured by Cooperative Shares and a Proprietary
        Lease.

       

      “Cooperative
        Loan Documents”:
        As to
        any Cooperative Loan, (i) the Cooperative Shares, together with a stock power
        in
        blank; (ii) the original or a copy of the executed Security Agreement and
        the
        assignment of the Security Agreement in blank; (iii) the original or a copy
        of
        the executed Proprietary Lease and the original assignment of the Proprietary
        Lease endorsed in blank; (iv) the original, if available, or a copy of the
        executed Recognition Agreement and, if available, the original assignment
        of the
        Recognition Agreement (or a blanket assignment of all Recognition Agreements)
        endorsed in blank; (v) the executed UCC-1 financing statement with evidence
        of
        recording thereon, which has been filed in all places required to perfect
        the
        security interest in the Cooperative Shares and the Proprietary Lease; and
        (vi)
        executed UCC amendments (or copies thereof) or other appropriate UCC financing
        statements required by state law, evidencing a complete and unbroken line
        from
        the mortgagee to the Trustee with evidence of recording thereon (or in a
        form
        suitable for recordation).

       

      “Cooperative
        Property”:
        The
        real property and improvements owned by the Cooperative Corporation, that
        includes the allocation of individual dwelling units to the holders of the
        Cooperative Shares of the Cooperative Corporation.

       

      “Cooperative
        Shares”:
        Shares
        issued by a Cooperative Corporation.

       

      “Cooperative
        Unit”:
        A
        single family dwelling located in a Cooperative Property.

       

      “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 1761 East St. Andrew Place, Santa Ana,
        California 92705, Attention: DSLA Trust 2006-AR2, or at such other address
        as
        the Trustee may designate from time to time by notice to the Certificateholders,
        the Depositor, the Master Servicer, the Securities Administrator and the
        Seller.
        With respect to the Securities Administrator and the Certificate Registrar
        and
        (i) presentment of Certificates for registration of transfer, exchange or
        final
        payment, Wells Fargo Bank, National Association, Sixth Street and Marquette
        Avenue, Minneapolis, Minnesota 55479, Attention: Corporate Trust, DSLA Mortgage
        Loan Trust 2006-AR2, and (ii) for all other purposes, P.O. Box 98, Columbia,
        Maryland 21046 (or for overnight deliveries, 9062 Old Annapolis Road, Columbia,
        Maryland 21045), Attention: Corporate Trust, DSLA Mortgage Loan Trust
        2006-AR2.

       

      “Corresponding
        Class”:
        With
        respect to each class of Lower Tier Regular Interests or Middle Tier Regular
        Interests, the Class or Classes of Certificates corresponding to such class
        as
        set forth in the Preliminary Statement. 

       

      “Credit
        Enhancement Percentage”:
        For
        any Distribution Date and any Class of Certificates, the percentage obtained
        by
        dividing (i) the sum of (x) the aggregate Class Principal Balance of the
        Subordinate Certificates subordinate to such Class and (y) the
        Overcollateralized Amount by (y) the aggregate Stated Principal Balance of
        the
        Mortgage Loans.

       

      
        
          
          

        

        
          16

          
            

          

        

        
          
          

        

      

       

      
        
          	 	 	
                  Initial
                    Credit Enhancement Percentage

                	 	
                  Target
                    Credit Enhancement Percentage before September 2012 or Stepdown
                    Date

                	 	
                  Target
                    Credit Enhancement Percentage on or after September 2012 or Stepdown
                    Date

                
	
                  Senior

                	 	
                  7.150%

                	 	
                  17.875%

                	 	
                  14.300%

                
	
                  M-1

                	 	
                  4.450%

                	 	
                  11.125%

                	 	
                  8.900%

                
	
                  M-2

                	 	
                  3.300%

                	 	
                  8.250%

                	 	
                  6.600%

                
	
                  M-3

                	 	
                  2.700%

                	 	
                  6.750%

                	 	
                  5.400%

                
	
                  M-4

                	 	
                  2.150%

                	 	
                  5.375%

                	 	
                  4.300%

                
	
                  M-5

                	 	
                  1.550%

                	 	
                  3.875%

                	 	
                  3.100%

                
	
                  M-6

                	 	
                  1.050%

                	 	
                  2.625%

                	 	
                  2.100%

                
	
                  M-7

                	 	
                  0.500%

                	 	
                  1.250%

                	 	
                  1.000%

                

        

      

       

      “Credit
        Risk Management Agreement”:
        Either
        (i) the credit risk management agreement dated as of the Closing Date, entered
        into by the Servicer and the Credit Risk Manager or (ii) the credit risk
        management agreement dated as of the Closing Date, entered into by the Master
        Servicer and the Credit Risk Manager, as applicable.

       

      “Credit
        Risk Manager”:
        Clayton Fixed Income Services Inc., a Colorado corporation, and its successors
        and assigns.

       

      “Credit
        Risk Manager’s Fee”:
        With
        respect to any Distribution Date and each Mortgage Loan, an amount equal
        to the
        product of (a) one twelfth, (b) the Credit Risk Manager’s Fee Rate and (c) the
        Scheduled Principal Balance of such Mortgage Loan as of the first day of
        the
        related Collection Period.

       

      “Credit
        Risk Manager’s Fee Rate”:
        0.0050% per annum.

       

      “Custodian”:
        Deutsche Bank National Trust Company, and its successors acting as custodian
        of
        the Mortgage Files.

       

      “Cut-off
        Date”:
        The
        Initial Cut-off Date or the Subsequent Cut-off Date, as applicable.

       

      “Cut-off
        Date Aggregate Principal Balance”:
        The
        aggregate of the Cut-off Date Principal Balances of all of the Mortgage
        Loans.

       

      “Cut-off
        Date Collateral Balance”:
        As to
        any Distribution Date, the sum of (i) the aggregate Stated Principal Balance
        of
        all Initial Mortgage Loans as of August 1, 2006 and (ii) the Prefunded Amount.
        

       

      “Cut-off
        Date Principal Balance”:
        With
        respect to any Mortgage Loan, the principal balance thereof remaining to
        be
        paid, after application of all scheduled principal payments due on or before
        the
        Cut-off Date whether or not received as of the Cut-off Date (or as of the
        applicable date of substitution with respect to a Qualified Substitute Mortgage
        Loan).

       

      
        
          
          

        

        
          17

          
            

          

        

        
          
          

        

      

       

      “DBRS”:
        Dominion Bond Rating Service, Inc., and its successors.

       

      “Deferred
        Interest”:
        With
        respect to each Mortgage Loan and each related Due Date, will be the excess,
        if
        any, of the amount of interest accrued on such Mortgage Loan from the preceding
        Due Date to such due date over the portion of the Monthly Payment allocated
        to
        interest for such Due Date.

       

      “Deficiency
        Amount”:
        Means
        with respect to the Insured Certificates, (a) for any Distribution Date prior
        to
        the Final Distribution Date, the sum of (1) the excess, if any, of the Monthly
        Interest Distributable Amount on the Insured Certificates for such Distribution
        Date, net of any Net Interest Shortfalls, Basis Risk Shortfalls and Net Deferred
        Interest, over the amount of Available Funds to pay such net amount on the
        Insured Certificates on such Distribution Date and (2) the amount, if any,
        of
        any Realized Losses allocable to the Insured Certificates on such Distribution
        Date (after giving effect to all distributions to be made thereon on such
        Distribution Date, other than pursuant to a claim on the Certificate Insurance
        Policy) and (b) for the Final Distribution Date, the sum of (x) the amount
        set
        forth in clause (a)(1) above and (y) the aggregate outstanding Certificate
        Principal Balance of the Insured Certificates, after giving effect to all
        payments of principal on the Insured Certificates on such Final Distribution
        Date, other than pursuant to a claim on the Certificate Insurance Policy
        on that
        Distribution Date. 

       

      “Definitive
        Certificates”:
        Any
        Certificate evidenced by a Physical Certificate and any Certificate issued
        in
        lieu of a Book-Entry Certificate pursuant to Section 6.02(c) or (d)
        hereof.

       

      “Deleted
        Mortgage Loan”:
        A
        Mortgage Loan replaced or to be replaced by one or more Qualified Substitute
        Mortgage Loans.

       

      “Delinquent”:
        Any
        Mortgage Loan with respect to which the Monthly Payment due on a Due Date
        is not
        made.

       

      “Depositor”:
        Greenwich Capital Acceptance, Inc., a Delaware corporation, or any successor
        in
        interest.

       

      “Depository”:
        The
        initial Depository shall be The Depository Trust Company, whose nominee is
        Cede
& Co., or any other organization registered as a “clearing agency” pursuant
        to Section 17A of the Exchange Act. The Depository shall initially be the
        registered Holder of the Book-Entry Certificates. The Depository shall at
        all
        times be a “clearing corporation” as defined in Section 8-102(3) of the Uniform
        Commercial Code of the State of New York.

       

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

       

      “Determination
        Date”:
        For
        any Distribution Date and each Mortgage Loan, the date each month, as set
        forth
        in the Servicing Agreement, on which the Servicer determines the amount of
        all
        funds required to be remitted to the Master Servicer on the Servicer Remittance
        Date with respect to the Mortgage Loans. 

       

      
        
          
          

        

        
          18

          
            

          

        

        
          
          

        

      

       

      “Disqualified
        Organization”:
        A
“disqualified organization” defined in Section 860E(e)(5) of the Code, or any
        other Person so designated by the Securities Administrator based upon an
        Opinion
        of Counsel provided to the Securities Administrator by nationally recognized
        counsel acceptable to the Securities Administrator that the holding of an
        ownership interest in the Residual Certificate by such Person may cause the
        Trust Fund or any Person having an ownership interest in any Class of
        Certificates (other than such Person) to incur liability for any federal
        tax
        imposed under the Code that would not otherwise be imposed but for the transfer
        of an ownership interest in the Residual Certificate to such
        Person.

       

      “Distressed
        Mortgage Loan”:
        Any
        Mortgage Loan that at the date of determination is Delinquent in payment
        for a
        period of 90 days or more without giving effect to any grace period permitted
        by
        the related Mortgage Note or for which the Servicer on behalf of the Trust
        Fund
        has accepted a deed in lieu of foreclosure.

       

      “Distribution
        Account”:
        The
        trust account or accounts created and maintained by the Securities Administrator
        pursuant to Section 4.02 hereof which shall be entitled “Distribution Account,
        Wells Fargo Bank, N.A., as Securities Administrator, on behalf of Deutsche
        Bank
        National Trust Company, as Trustee, in trust for the registered Holders of
        DSLA
        Mortgage Loan Trust, Mortgage Loan Pass-Through Certificates, Series 2006-AR2”
and which must be an Eligible Account.

       

      “Distribution
        Account Income”:
        As to
        any Distribution Date, any interest or other investment income earned on
        funds
        deposited in the Distribution Account during the month of such Distribution
        Date.

       

      “Distribution
        Date”:
        The
        19th day of the month, or, if such day is not a Business Day, the next Business
        Day commencing in September 2006.

       

      “Distribution
        Date Statement”:
        As
        defined in Section 5.04(a) hereof.

       

      “Downey”:
        Downey
        Savings and Loan Association, F.A., and its successors and assigns, in its
        capacity as an Originator and a Servicer.

       

      “Due
        Date”:
        With
        respect to each Mortgage Loan and any Distribution Date, the first day of
        the
        calendar month in which such Distribution Date occurs on which the Monthly
        Payment for such Mortgage Loan was due, exclusive of any days of
        grace.

       

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

       

      “Eligible
        Account”:
        Any
        of:

       

      (i) an
        account or accounts maintained with a federal or state chartered depository
        institution or trust company the short-term unsecured debt obligations of
        which
        (or, in the case of a depository institution or trust company that is the
        principal subsidiary of a holding company, the short-term unsecured debt
        obligations of such holding company) are rated in the highest short term
        rating
        category of each Rating Agency at the time any amounts are held on deposit
        therein;

       

      
        
          
          

        

        
          19

          
            

          

        

        
          
          

        

      

       

      (ii) an
        account or accounts the deposits in which are fully insured by the FDIC (to
        the
        limits established by it), the uninsured deposits in which account are otherwise
        secured such that, as evidenced by an Opinion of Counsel delivered to the
        Securities Administrator and the Trustee and to each Rating Agency, the Trustee
        on behalf of the Certificateholders will have a claim with respect to the
        funds
        in the account or a perfected first priority security interest against the
        collateral (which shall be limited to Permitted Investments) securing those
        funds that is superior to claims of any other depositors or creditors of
        the
        depository institution with which such account is maintained;

       

      (iii) a
        trust
        account or accounts maintained with the trust department of a federal or
        state
        chartered depository institution, national banking association or trust company
        acting in its fiduciary capacity; or 

       

      (iv) an
        account otherwise acceptable to each Rating Agency without reduction or
        withdrawal of its then current ratings of the Certificates (without regard
        to
        the Certificate Insurance Policy) as evidenced by a letter from such Rating
        Agency to the Securities Administrator and the Trustee. Eligible Accounts
        may
        bear interest.

       

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

       

      “ERISA-Restricted
        Certificates”:
        (i)
        the Class C, Class P and Class R Certificates and (ii) any Offered
        Certificate which does not satisfy the minimum ratings requirements under
        the
        Underwriter's Exemption.

       

      “Event
        of Default”:
        In
        respect of the Master Servicer, one or more of the events (howsoever described)
        set forth in Section 7.01 hereof as an event or events upon the occurrence
        and
        continuation of which the Master Servicer may be terminated.

       

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

       

      “Expense
        Fee”:
        With
        respect to any Mortgage Loan, the sum of (i) the Servicing Fee, (ii) the
        Master
        Servicing Fee, (iii) any Bulk PMI Fee, if applicable and (iv) the Credit
        Risk
        Manager Fee.

       

      “Expense
        Fee Rate”:
        With
        respect to any Mortgage Loan, the per annum rate at which the Expense Fee
        accrues for such Mortgage Loan as set forth in the Mortgage Loan
        Schedule.

       

      “Extra
        Principal Distribution Amount”:
        For
        any Distribution Date, is the lesser of (x) the Net Monthly Excess Cashflow
        for
        such Distribution Date and (y) the Overcollateralization Deficiency Amount
        for
        such Distribution Date.

       

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

       

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

       

      
        
          
          

        

        
          20

          
            

          

        

        
          
          

        

      

       

    

    “Final
      Distribution Date”:
      The
      Distribution Date occurring in October 2036 (other than the Insured
      Certificates, which is November 2037).

     

    “Final
      Maturity Reserve Account”:
      The
      account created pursuant to Section 5.09 of this Agreement.

     

    “Final
      Maturity Reserve Amount”:
      For
      each Distribution Date prior to the Distribution Date in October 2016, zero.
      For
      each Distribution Date on and after the Distribution Date in October 2016 to
      and
      including the earlier of (i) the Distribution Date in September 2026 or (ii)
      the
      termination of the Trust, the product of (x) the quotient of the Final Maturity
      Reserve Rate divided
      by
      12 and
      (y) the aggregate Stated Principal Balance of the Mortgage Loans on the first
      day of the related Due Period (not including for this purpose Mortgage Loans
      for
      which prepayments in full have been received and distributed in the month prior
      to the Distribution Date).

     

    “Final
      Maturity Reserve Rate”:
      A per
      annum rate equal to the product of (i) 1.00% and (ii) a fraction, the numerator
      of which is the aggregate Stated Principal Balance as of the Cut-off Date of
      the
      Mortgage Loans having 40-year original terms to maturity and the denominator
      of
      which is aggregate Stated Principal Balance as of the Cut-off Date of all of
      the
      Mortgage Loans.

     

    “Final
      Maturity Reserve Trust”:
      The
      corpus of a trust created pursuant to Section 5.09 of this Agreement and
      designated as the “Final Maturity Reserve Trust,” consisting of the Final
      Maturity Reserve Account, but which is not an asset of any REMIC.

     

    “Final
      Recovery Determination”:
      With
      respect to any defaulted Mortgage Loan or any REO Property (other than a
      Mortgage Loan or REO Property purchased by the Seller pursuant to or
      contemplated by Section 2.03, 3.25 and 10.01), a determination made by the
      Servicer that all Insurance Proceeds, Liquidation Proceeds and other payments
      or
      recoveries which it expects to be finally recoverable in respect thereof have
      been so recovered.

     

    “Form
      8-K Disclosure Information”:
      As
      defined in Section 3.19(c).

     

    “Freddie
      Mac”:
      The
      Federal Home Loan Mortgage Corporation or any successor thereto.

     

    “GCFP”:
      Greenwich Capital Financial Products, Inc., and its successors or
      assigns.

     

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

     

    “Group
      1 Adjusted Cap Rate”:
      For
      any Distribution Date and for the Group 1 Certificates, the Net WAC Cap for
      such
      Distribution Date, determined by first reducing the Net WAC by a per annum
      rate
      equal to the product of (i) the Net Deferred Interest for Loan Group 1 for
      that
      Distribution Date multiplied by (ii) 12, divided
      by
      the Pool
      Collateral Balance for Loan Group 1 as of the first day of the month before
      such
      Distribution Date (or in the case of the first Distribution Date, as of the
      Initial Cut-off Date).

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

     

    “Group
      1 Certificates”:
      The
      Class 1A-1A and Class 1A-1B Certificates.

     

    “Group
      1 Mortgage Loan”:
      A
      Mortgage Loan that is identified as such on the Mortgage Loan
      Schedule.

     

    “Group
      1 Prefunded Amount”:
      The
      amount deposited in the Prefunding Account on the Closing Date to purchase
      additional Group 1 Mortgage Loans, which shall equal
      $91,827,627.00.

     

    “Group
      1 Principal Distribution Amount”:
      For
      any Distribution Date on or after the Stepdown Date and as long as a Trigger
      Event has not occurred or is not continuing with respect to such Distribution
      Date, will be the lesser of (a) the greater of (x) the Senior Principal
      Distribution Amount multiplied by the Group 1 Principal Distribution Percentage
      and (y) the amount by which the aggregate Class Principal Balances of the Group
      1 Certificates exceed the Stated Principal Balances of the Group 1 Mortgage
      Loans as of the last day of the related Prepayment Period (after giving effect
      to scheduled payments of principal due during the related Due Period, to the
      extent received or advanced, and unscheduled collections of principal received
      during the related Prepayment Period) and (b) the aggregate Class Principal
      Balance of the Group 1 Certificates; provided,
      however,
      that
      with respect to any such Distribution Date on which the aggregate Class
      Principal Balance of the Group 2 Certificates is reduced to zero, the Group
      2
      Principal Distribution Percentage of the Senior Principal Distribution Amount
      available for distribution to the Senior Certificates in excess of the amount
      necessary to reduce the aggregate Class Principal Balance of the Group 2
      Certificates to zero will be applied to increase the Group 1 Principal
      Distribution Amount (so long as any Class of Group 1 Certificates is
      outstanding).

     

    “Group
      1 Principal Distribution Percentage”:
      For
      any Distribution Date, a fraction, the numerator of which is (a) the sum of
      (i)
      the Stated Principal Balances of the Group 1 Mortgage Loans as of the first
      day
      of the related Prepayment Period (after giving effect to scheduled payments
      of
      principal due during the related Due Period, to the extent received or advanced,
      and unscheduled collections of principal received during the related Prepayment
      Period) and (ii) the amount on deposit in respect of Loan Group 1 in the
      Prefunding Account as of the first day of the related Prepayment Period
minus
      (b) the
      sum of (i) the Stated Principal Balances of the Group 1 Mortgage Loans as of
      the
      last day of the related Prepayment Period (after giving effect to scheduled
      payments of principal due during the related Due Period, to the extent received
      or advanced, and unscheduled collections of principal received during the
      related Prepayment Period) and (ii) the amount on deposit in respect of Loan
      Group 1 in the Prefunding Account as of the last day of the related Prepayment
      Period, and the denominator of which is (a) the sum of (i) the Stated Principal
      Balances of the Mortgage Loans as of the first day of the related Prepayment
      Period (after giving effect to scheduled payments of principal due during the
      related Due Period, to the extent received or advanced, and unscheduled
      collections of principal received during the related Prepayment Period) and
      (ii)
      the amount on deposit in the Prefunding Account as of the first day of the
      related Prepayment Period minus
      (b) the
      sum of (i) the Stated Principal Balances of the Mortgage Loans as of the last
      day of the related Prepayment Period (after giving effect to scheduled payments
      of principal due during the related Due Period, to the extent received or
      advanced, and unscheduled collections of principal received during the related
      Prepayment Period) and (ii) the amount on deposit in the Prefunding Account
      as
      of the last day of the related Prepayment Period.

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

     

    “Group
      2 Adjusted Cap Rate”:
      For
      any Distribution Date and for the Group 2 Certificates, the Net WAC Cap for
      such
      Distribution Date, determined by first reducing the Net WAC by a per annum
      rate
      equal to the product of (i) the Net Deferred Interest for Loan Group 2 for
      that
      Distribution Date multiplied by (ii) 12, divided
      by
      the Pool
      Collateral Balance for Loan Group 2 as of the first day of the month before
      such
      Distribution Date (or in the case of the first Distribution Date, as of the
      Initial Cut-off Date).

     

    “Group
      2 Certificates”:
      The
      Class 2A-1A, Class 2A-1B1, Class 2A-1B2, Class 2A-1B3 and Class 2A-1C
      Certificates.

     

    “Group
      2 Mortgage Loan”:
      A
      Mortgage Loan that is identified as such on the Mortgage Loan
      Schedule.

     

    “Group
      2 Prefunded Amount”:
      The
      amount deposited in the Prefunding Account on the Closing Date to purchase
      additional Group 2 Mortgage Loans, which shall equal
      $103,648,944.00.

     

    “Group
      2 Principal Distribution Amount”:
      For
      any Distribution Date on or after the Stepdown Date and as long as a Trigger
      Event has not occurred or is not continuing with respect to such Distribution
      Date, will be the lesser of (a) the greater of (x) the Senior Principal
      Distribution Amount multiplied by the Group 2 Principal Distribution Percentage
      and (y) the amount by which the aggregate Class Principal Balances of the Group
      2 Certificates exceed the Stated Principal Balances of the Group 2 Mortgage
      Loans as of the last day of the related Prepayment Period (after giving effect
      to scheduled payments of principal due during the related Due Period, to the
      extent received or advanced, and unscheduled collections of principal received
      during the related Prepayment Period) and (b) the aggregate Class Principal
      Balance of the Group 2 Certificates; provided,
      however,
      that
      with respect to any such Distribution Date on which the aggregate Class
      Principal Balance of the Group 1 Certificates is reduced to zero, the Group
      1
      Principal Distribution Percentage of the Senior Principal Distribution Amount
      available for distribution to the Senior Certificates in excess of the amount
      necessary to reduce the aggregate Class Principal Balance of the Group 1
      Certificates to zero will be applied to increase the Group 2 Principal
      Distribution Amount (so long as any Class of Group 2 Certificates is
      outstanding).

     

    “Group
      2 Principal Distribution Percentage”:
      For
      any Distribution Date, a fraction, the numerator of which is (a) the sum of
      (i)
      the Stated Principal Balances of the Group 2 Mortgage Loans as of the first
      day
      of the related Prepayment Period (after giving effect to scheduled payments
      of
      principal due during the related Due Period, to the extent received or advanced,
      and unscheduled collections of principal received during the related Prepayment
      Period) and (ii) the amount on deposit in respect of Loan Group 2 in the
      Prefunding Account as of the first day of the related Prepayment Period
minus
      (b) the
      sum of (i) the Stated Principal Balances of the Group 2 Mortgage Loans as of
      the
      last day of the related Prepayment Period (after giving effect to scheduled
      payments of principal due during the related Due Period, to the extent received
      or advanced, and unscheduled collections of principal received during the
      related Prepayment Period) and (ii) the amount on deposit in respect of Loan
      Group 2 in the Prefunding Account as of the last day of the related Prepayment
      Period, and the denominator of which is (a) the sum of (i) the Stated Principal
      Balances of the Mortgage Loans as of the first day of the related Prepayment
      Period (after giving effect to scheduled payments of principal due during the
      related Due Period, to the extent received or advanced, and unscheduled
      collections of principal received during the related Prepayment Period) and
      (ii)
      the amount on deposit in the Prefunding Account as of the first day of the
      related Prepayment Period minus
      (b) the
      sum of (i) the Stated Principal Balances of the Mortgage Loans as of the last
      day of the related Prepayment Period (after giving effect to scheduled payments
      of principal due during the related Due Period, to the extent received or
      advanced, and unscheduled collections of principal received during the related
      Prepayment Period) and (ii) the amount on deposit in the Prefunding Account
      as
      of the last day of the related Prepayment Period.

     

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

     

    “Indemnification
      Agreement”:
      The
      Indemnification Agreement dated as of the Closing Date among the Depositor,
      the
      Seller, Greenwich Capital Markets, Inc. and the Certificate Insurer, including
      any amendments and supplements thereto.

     

    “Indemnified
      Persons”:
      The
      Trustee (individually in its corporate capacity and in all capacities
      hereunder), the Master Servicer, the Depositor, the Custodian, the Securities
      Administrator (in all capacities hereunder), the NIMS Insurer and the
      Certificate Insurer 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 accountants, a Person who is “independent” within the
      meaning of Rule 2-01(B) of the Securities and Exchange Commission’s Regulation
      S-X. Independent means, when used with respect to any other Person, a Person
      who
      (A) is in fact independent of another specified Person and any affiliate of
      such
      other Person, (B) does not have any material direct or indirect financial
      interest in such other Person or any affiliate of such other Person, (C) is
      not
      connected with such other Person or any affiliate of such other Person as an
      officer, employee, promoter, underwriter, trustee, partner, director or Person
      performing similar functions and (D) is not a member of the immediate family
      of
      a Person defined in clause (B) or (C) above.

     

    “Indenture”:
      An
      indenture relating to the issuance of notes secured by the Class C Certificates,
      the Class P Certificates and/or the Residual Certificates (or any portion
      thereof) which may or may not be guaranteed by the NIMS Insurer.

     

    “Index”:
      With
      respect to each Mortgage Loan and each Adjustment Date, the index specified
      in
      the related Mortgage Note.

     

    “Initial
      Certificate Principal Balance”:
      With
      respect to any Certificate other than the Class C and Class R Certificates,
      the
      amount designated “Initial Certificate Principal Balance” on the face
      thereof.

     

    “Initial
      Cut-off Date”:
      With
      respect to any Initial Mortgage Loan, the Close of Business in New York City
      on
      August 1, 2006. 

     

    “Initial
      LIBOR Rate”:
      5.330%.

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

     

    “Initial
      Loan Group 1 Balance”:
      $434,287,068.08.

     

    “Initial
      Loan Group 2 Balance”:
      $580,236,361.30.

     

    “Initial
      Mortgage Loan”:
      Any
      Mortgage Loan conveyed to the Trust Fund on the Closing Date pursuant to
      Section 2.01 hereof, which Mortgage Loan shall be listed on the Mortgage
      Loan Schedule delivered pursuant to this Agreement.

     

    “Insurance
      Proceeds”:
      With
      respect to any Mortgage Loan, proceeds of any title policy, hazard policy or
      other insurance policy covering a Mortgage Loan, to the extent such proceeds
      are
      not to be applied to the restoration of the related Mortgaged Property or
      released to the related Mortgagor in accordance with the Servicing
      Agreement.

     

    “Insured
      Amount”:
      As
      defined in the Certificate Insurance Policy. 

     

    “Insured
      Certificates”:
      The
      Class 1A-1B and Class 2A-1C Certificates.

     

    “Insurer
      Premium Rate”:
      0.08%
      per annum.

     

    “Interest
      Distributable Amount”:
      With
      respect to any Distribution Date and each Class of Certificates (other than
      the
      Class C, Class P and Class R Certificates), the sum of (i) the Monthly
      Interest Distributable Amount for that Class and (ii) the Unpaid Interest
      Shortfall Amount for that Class.

     

    “Interest
      Remittance Amount”:
      For
      any Distribution Date and Loan Group, the sum of (i) the portion of the
      Available Funds for such Distribution Date attributable to interest received
      or
      advanced with respect to the Mortgage Loans in such Loan Group and (ii)
      Principal Prepayments for such Loan Group received during the related Prepayment
      Period up to the amount of related Deferred Interest for such Distribution
      Date.

     

    “Interest
      Shortfall”:
      With
      respect to any Distribution Date and each Mortgage Loan that during the related
      Prepayment Period was the subject of a Principal Prepayment or a reduction
      of
      its Monthly Payment under the Relief Act, constitutes an amount determined
      as
      follows:

     

    (a) Principal
      Prepayments in part received during the relevant Prepayment Period: the
      difference between (i) one month’s interest at the applicable Net Loan Rate for
      such Mortgage Loan on the amount of such prepayment and (ii) the amount of
      interest for the calendar month of such prepayment (adjusted to the applicable
      Net Loan Rate) received at the time of such prepayment; and

     

    (b) Principal
      Prepayments in full received during the relevant Prepayment Period: the
      difference between (i) one month’s interest at the applicable Net Loan Rate on
      the Stated Principal Balance of such Mortgage Loan immediately prior to such
      prepayment and (ii) the amount of interest for the calendar month of such
      prepayment (adjusted to the applicable Net Loan Rate) received at the time
      of
      such prepayment; and

     

    (c) any
      Relief Act Reductions for such Distribution Date.

     

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

     

    “Late
      Payment Rate”:
      The
      meaning given to such term in the Certificate Insurance Policy.

     

    “Latest
      Possible Maturity Date”:
      As
      determined as of the Cut-off Date, the Distribution Date following the fifth
      anniversary of the scheduled maturity date of the Mortgage Loan having the
      latest scheduled maturity date as of the Cut-off Date.

     

    “Lender-Paid
      Mortgage Insurance Loan”:
      Each
      Mortgage Loan identified as such in the Mortgage Loan Schedule.

     

    “Lender-Paid
      Mortgage Insurance Fee”:
      As to
      any Distribution Date and each Lender Paid Mortgage Insurance Mortgage Loan,
      an
      amount equal to the product of the Lender-Paid Mortgage Insurance Fee Rate
      and
      the outstanding Principal Balance of such Mortgage Loan as of the first day
      of
      the related Due Period. 

     

    “Lender-Paid
      Mortgage Insurance Fee Rate”:
      For
      each Lender-Paid Mortgage Insurance Loan and any Distribution Date, the per
      annum rate required to be paid in connection with the related lender-paid
      mortgage insurance policy for such Mortgage Loan on such Distribution
      Date.

     

    “LIBOR”:
      With
      respect to the first Accrual Period, the Initial LIBOR Rate. With respect to
      each subsequent Accrual Period, a per annum rate determined on the LIBOR
      Determination Date in the following manner by the Securities Administrator
      on
      the basis of the “Interest Settlement Rate” set by the BBA for one-month United
      States dollar deposits, as such rates appear on the Telerate Page 3750, as
      of
      11:00 a.m. (London time) on such LIBOR Determination Date.

     

    (a) If
      on
      such a LIBOR Determination Date, the BBA’s Interest Settlement Rate does not
      appear on the Telerate Page 3750 as of 11:00 a.m. (London time), or if the
      Telerate Page 3750 is not available on such date, the Securities Administrator
      will obtain such rate from Reuters’ “page LIBOR 01” or Bloomberg’s page “BBAM.”
If such rate is not published for such LIBOR Determination Date, LIBOR for
      such
      date will be the most recently published Interest Settlement Rate. In the event
      that the BBA no longer sets an Interest Settlement Rate, the rate for such
      date
      will be determined on the basis of the rates at which one-month U.S. dollar
      deposits are offered by the Reference Banks at approximately 11:00 am (London
      time) on such date to prime banks in the London interbank market. In such event,
      the Securities Administrator will request the principal London office of each
      of
      the Reference Banks to provide a quotation of its rate. If at least two such
      quotations are provided, the rate for that date will be the arithmetic mean
      of
      the quotations (rounded upwards if necessary to the nearest whole multiple
      of
      1/16%). If fewer than two quotations are provided as requested, the rate for
      that date will be the arithmetic mean of the rates quoted by major banks in
      New
      York City, selected by the Securities Administrator (after consultation with
      the
      Depositor), at approximately 11:00 a.m. (New York City time) on such date for
      one-month U.S. dollar loan to leading European banks.

     

    (b) The
      establishment of LIBOR by the Securities Administrator and the Securities
      Administrator’s subsequent calculation of the Pass-Through Rate applicable to
      the LIBOR Certificates for the relevant Accrual Period, in the absence of
      manifest error, will be final and binding.

     

    
      
        
        

      

      
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    “LIBOR
      Business Day”:
      Any
      day on which banks in London, England and the City of New York are open and
      conducting transactions in foreign currency and exchange.

     

    “LIBOR
      Certificates”:
      The
      Class 1A-1A, Class 1A-1B, Class 2A-1A, Class 2A-1B1, Class 2A-1B2, Class 2A-1B3,
      Class 2A-1C Certificates and the Subordinate Certificates.

     

    “LIBOR
      Determination Date”:
      The
      second LIBOR Business Day immediately preceding the commencement of each Accrual
      Period for the LIBOR Certificates.

     

    “Liquidated
      Mortgage Loan”:
      As to
      any Distribution Date, any Mortgage Loan in respect of which the Servicer has
      determined, as of the end of the related Prepayment Period, that all Liquidation
      Proceeds that it expects to recover with respect to the liquidation of such
      Mortgage Loan or disposition of the related REO Property have been
      recovered.

     

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

     

    “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 Servicer, 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, the amount (other than amounts received in respect
      of the rental of any REO Property prior to REO Disposition) received by the
      Servicer as proceeds from the liquidation of such Mortgage Loan, as determined
      in accordance with the applicable provisions of the Servicing Agreement, other
      than Recoveries; provided
      that
      with respect to any Mortgage Loan or REO Property repurchased, substituted
      or
      sold pursuant to or as contemplated hereunder, or pursuant to the applicable
      provisions of the Servicing Agreement, “Liquidation Proceeds” shall also include
      amounts realized in connection with such repurchase, substitution or
      sale.

     

    “Loan
      Group”:
      Either
      of Loan Group 1 or Loan Group 2, as the context requires.

     

    “Loan
      Group Balance”:
      As to
      each Loan Group and any Distribution Date, the aggregate of the Stated Principal
      Balances, as of the Close of Business on the first day of the month preceding
      the month in which such Distribution Date occurs, of the Mortgage Loans in
      such
      Loan Group that were Outstanding Mortgage Loans on that day.

     

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

    

     

    “Loan
      Group 1”:
      At any
      time, the Group 1 Mortgage Loans in the aggregate and any REO Properties
      acquired in respect thereof.

     

    “Loan
      Group 2”:
      At any
      time, the Group 2 Mortgage Loans in the aggregate and any REO Properties
      acquired in respect thereof.

     

    “Loan
      Group Collateral Balance”:
      With
      respect to each Loan Group and any date of determination, the applicable Loan
      Group Balance plus the amount, if any, then on deposit in the Prefunding
      Account, with respect to the related Loan Group; provided
      that the
      Loan Group Collateral Balance as of the Initial Cut-off Date will include the
      Group 1 Prefunded Amount or Group 2 Prefunded Amount, as
      applicable.

     

    “Loan
      Rate”:
      With
      respect to each Mortgage Loan, the annual rate at which interest accrues on
      such
      Mortgage Loan from time to time in accordance with the provisions of the related
      Mortgage Note.

     

    “Loan-to-Value
      Ratio”:
      With
      respect to each Mortgage Loan and any date of determination, a fraction,
      expressed as a percentage, the numerator of which is the Principal Balance
      of
      the Mortgage Loan at such date of determination and the denominator of which
      is
      the Value of the related Mortgaged Property.

     

    “Lost
      Note Affidavit”:
      With
      respect to any Mortgage Loan as to which the original Mortgage Note has been
      lost or destroyed and has not been replaced, an affidavit from the Seller
      certifying that the original Mortgage Note has been lost, misplaced or destroyed
      (together with a copy of the related Mortgage Note and indemnifying the Trust
      Fund against any loss, cost or liability resulting from the failure to deliver
      the original Mortgage Note) in the form of Exhibit H hereto.

     

    “Lower-Tier
      Regular Interest”:
      As
      described in the Preliminary Statement.

     

    “Lower-Tier
      REMIC”:
      As
      described in the Preliminary Statement.

     

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

     

    “Master
      Servicer”:
      Wells
      Fargo Bank, N.A., or any successor Master Servicer appointed as herein
      provided.

     

    “Master
      Servicing Fee”:
      As to
      any Distribution Date and each related Mortgage Loan, an amount equal to the
      product of the applicable Master Servicing Fee Rate and the outstanding
      Principal Balance of such Mortgage Loan as of the first day of the related
      Due
      Period.

     

    “Master
      Servicing Fee Rate”:
      0.0075% per annum.

     

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

     

    
      
        
        

      

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

     

    “MERS
      Mortgage Loan”:
      Any
      Mortgage Loan registered with MERS on the MERS System.

     

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

     

    “MIN”:
      The
      Mortgage Identification Number for any MERS Mortgage Loan.

     

    “MOM
      Loan”:
      Any
      Mortgage Loan as to which MERS is acting as mortgagee, solely as nominee for
      the
      originator of such Mortgage Loan and its successors and assigns.

     

    “Monthly
      Interest Distributable Amount”:
      With
      respect to each Class of Certificates (other than the Class C, Class P and
      Class
      R Certificates) and any Distribution Date, the amount of interest accrued during
      the related Accrual Period at the lesser of the related Pass-Through Rate and
      the related Adjusted Cap Rate on the Class Principal Balance of that Class
      immediately prior to that Distribution Date, in each case, reduced by any
      Prepayment Interest Shortfalls allocated to such Class and Relief Act Reductions
      (allocated to each Certificate based on its respective entitlements to interest
      irrespective of any Prepayment Interest Shortfalls or Relief Act Reductions
      for
      such Distribution Date) pursuant to Section 5.01; provided,
      however,
      that
      for purposes of compliance with the REMIC Provisions, (A) the Monthly Interest
      Distributable Amount for each Class of Subordinate Certificates shall be
      calculated by reducing the related Pass-Through Rate by a per annum rate equal
      to (i) 12 times the Subordinate Class Expense Share for such Class divided
      by
      (ii) the
      Class Principal Balance of such Class as of the beginning of the related Accrual
      Period and (B) such Class shall be deemed to bear interest at such Pass-Through
      Rate as so reduced for federal income tax purposes.

     

    “Monthly
      Payment”:
      With
      respect to any Mortgage Loan, the scheduled monthly payment of principal and/or
      interest on such Mortgage Loan that is payable by the related Mortgagor from
      time to time under the related Mortgage Note, determined, for the purposes
      of
      this Agreement: (a) after giving effect to 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 Servicer
      pursuant to the applicable provisions of the Servicing Agreement; and (c) on
      the
      assumption that all other amounts, if any, due under such Mortgage Loan are
      paid
      when due.

     

    “Moody’s”:
      Moody’s Investors Service, Inc. and its successors.

     

    “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 hereof pertaining to a particular
      Mortgage Loan and any additional documents required to be added to the Mortgage
      File pursuant to this Agreement.

     

    
      
        
        

      

      
        29

        
          

        

      

      
        
        

      

    

     

    “Mortgage
      Loan”:
      Each
      mortgage loan (including Cooperative Loans) transferred and assigned to the
      Trustee pursuant to Section 2.01 or Section 2.03(d) hereof as from time to
      time
      held as a part of the Trust Fund, the Mortgage Loans so held being identified
      in
      the Mortgage Loan Schedule.

     

    “Mortgage
      Loan Purchase Agreement”:
      The
      Mortgage Loan Purchase Agreement between the Seller and the Depositor, dated
      as
      of August 1, 2006, regarding the transfer of the Mortgage Loans by the Seller
      to
      or at the direction of the Depositor.

     

    “Mortgage
      Loan Schedule”:
      As of
      any date, the list of Mortgage Loans included in the Trust Fund on such date,
      attached hereto as Schedule I. The Mortgage Loan Schedule shall be prepared
      by
      the Seller and shall set forth the following information with respect to each
      Mortgage Loan:

     

    
      	(i)  	
              the
                Mortgage Loan identifying number;

            

    

     

    
      	(ii)  	
              the
                state and five-digit ZIP code of the Mortgaged
                Property;

            

    

     

    
      	(iii)  	
              a
                code indicating whether the Mortgaged Property was represented by
                the
                borrower, at the time of origination, as being
                owner-occupied;

            

    

     

    
      	(iv)  	
              a
                code indicating whether the Residential Dwelling constituting the
                Mortgaged Property is (a) a detached single family dwelling, (b)
                a
                dwelling in a planned unit development, (c) a condominium unit, (d)
                a two-
                to four-unit residential property, (e) a townhouse or (f) other type
                of
                Residential Dwelling;

            

    

     

    
      	(v)  	
              if
                the related Mortgage Note permits the borrower to make Monthly Payments
                of
                interest only for a specified period of time, (a) the original number
                of
                such specified Monthly Payments and (b) the remaining number of such
                Monthly Payments as of the Cut-off
                Date;

            

    

     

    
      	(vi)  	
              the
                original months to maturity;

            

    

     

    
      	(vii)  	
              the
                stated remaining months to maturity from the Cut-off Date based on
                the
                original amortization schedule;

            

    

     

    
      	(viii)  	
              the
                Loan-to-Value Ratio at origination;

            

    

     

    
      	(ix)  	
              the
                Loan-to-Collateral Value Ratio at
                origination;

            

    

     

    
      	(x)  	
              the
                Loan Rate in effect immediately following the Cut-off
                Date;

            

    

     

    
      	(xi)  	
              the
                date on which the first Monthly Payment is or was due on the Mortgage
                Loan;

            

    

     

    
      	(xii)  	
              the
                stated maturity date;

            

    

     

    
      
        
        

      

      
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      	(xiii)  	
              the
                Servicing Fee Rate;

            

    

     

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

            

    

     

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

            

    

     

    
      	(xvi)  	
              the
                Stated Principal Balance of the Mortgage Loan on the Cut-off Date
                and a
                code indicating the purpose of the Mortgage Loan (i.e., purchase
                financing, rate/term refinancing, cash-out
                refinancing);

            

    

     

    
      	(xvii)  	
              the
                Index and Gross Margin specified in related Mortgage
                Note;

            

    

     

    
      	(xviii)  	
              the
                next Adjustment Date, if
                applicable;

            

    

     

    
      	(xix)  	
              the
                Maximum Loan Rate, if applicable;

            

    

     

    
      	(xx)  	
              the
                Value of the Mortgaged Property;

            

    

     

    
      	(xxi)  	
              the
                sale price of the Mortgaged Property, if
                applicable;

            

    

     

    
      	(xxii)  	
              the
                product code;

            

    

     

    
      	(xxiii)  	
              whether
                the Mortgage Loan is a Lender-Paid Mortgage Insurance Loan, and the
                applicable Lender-Paid Mortgage Insurance Fee Rate, if
                applicable;

            

    

     

    
      	(xxiv)  	
              the
                Expense Fee Rate therefor; and

            

    

     

    
      	(xxv)  	
              the
                respective Loan Group.

            

    

     

    Information
      set forth in clauses (ii) and (iii) above regarding each Mortgagor and the
      related Mortgaged Property shall be confidential and the Trustee (or Master
      Servicer) shall not disclose such information except to the extent disclosure
      may be required by any law or regulatory or administrative authority;
provided,
      however,
      that
      the Trustee may disclose on a confidential basis any such information to its
      agents, attorneys and any auditors in connection with the performance of its
      responsibilities hereunder.

    

    The
      Mortgage Loan Schedule, as in effect from time to time, shall also set forth
      the
      following information with respect to the Mortgage Loans in the aggregate and
      by
      Loan Group 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 Loan Rate of the Mortgage Loans; and (4) the weighted
      average remaining months to maturity of the Mortgage Loans. The Mortgage Loan
      Schedule shall be amended from time to time by the Seller in accordance with
      the
      provisions of this Agreement.

     

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

     

    
      
        
        

      

      
        31

        
          

        

      

      
        
        

      

    

     

    “Mortgaged
      Property”:
      Either
      of (x) the fee simple or leasehold interest in real property, together with
      improvements thereto including any exterior improvements to be completed within
      120 days of disbursement of the related Mortgage Loan proceeds, or (y) in the
      case of a Cooperative Loan, the related Cooperative Shares and Proprietary
      Lease, securing the indebtedness of the Mortgagor under the related Mortgage
      Loan.

     

    “Mortgagor”:
      The
      obligor on a Mortgage Note.

     

    “MTA”:
      The
      twelve-month average yields on United States Treasury securities adjusted to
      a
      constant maturity of one year as published by the Federal Reserve Board in
      Statistical Release H.15(519).

     

    “MTA
      Indexed”:
      Indicates a Mortgage Loan that has an adjustable Loan Rate calculated on the
      basis of the MTA index.

     

    “Net
      Deferred Interest”:
      With
      respect to each Loan Group and any Distribution Date, the greater of (i) the
      excess, if any, of the Deferred Interest for the related Due Date over the
      aggregate amount of any principal prepayments in part or in full received during
      the related Prepayment Period and (ii) zero.

     

    “Net
      Interest Shortfall”:
      With
      respect to any Distribution Date, the excess of the Interest Shortfall, if
      any,
      for such Distribution Date over the sum of (i) Interest Shortfalls paid by
      the
      Servicer under the Servicing Agreement with respect to such Distribution Date
      and (ii) Compensating Interest Payments made with respect to such Distribution
      Date.

     

    “Net
      Liquidation Proceeds”:
      With
      respect to any Liquidated Mortgage Loan or any other disposition of related
      Mortgaged Property (including REO Property) the related Liquidation Proceeds
      net
      of Advances, related Servicing Advances, related Servicing Fees, related Master
      Servicing Fees and any other accrued and unpaid fees received and retained
      in
      connection with the liquidation of such Mortgage Loan or Mortgaged
      Property.

     

    “Net
      Loan Rate”:
      With
      respect to any Mortgage Loan (or the related REO Property), as of any date
      of
      determination, a per annum rate of interest equal to the then applicable Loan
      Rate for such Mortgage Loan minus
      the
      Expense Fee Rate and on and after the Distribution Date in October 2016, until
      the earlier of (i) the Distribution Date in September 2026 and (ii) the
      termination of the Trust, the Final Maturity Reserve Rate.

     

    “Net
      Maximum Rate”:
      For
      any Mortgage Loan and any Distribution Date, the maximum rate at which interest
      could accrue on such Mortgage Loan net of the sum of (a) the Expense Fee Rate
      and (b) on and after the Distribution Date in October 2016 until the earlier
      of
      (i) the Distribution Date in September 2026 and (ii) the termination of the
      Trust, the Final Maturity Reserve Rate.

     

    “Net
      Maximum Rate Cap”:
      For
      any Distribution Date will equal the applicable Net WAC Cap, computed for this
      purposes on the basis of the assumption that each Mortgage Loan accrued interest
      for the related Accrual Period at its Net Maximum Rate.

     

    
      
        
        

      

      
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    “Net
      Monthly Excess Cashflow”:
      For
      any Distribution Date is equal to the sum of (a) any Overcollateralization
      Release Amount and (b) the excess of (x) the Available Funds for such
      Distribution Date over (y) the sum for such Distribution Date of (A) the Monthly
      Interest Distributable Amounts for the LIBOR Certificates, (B) the Unpaid
      Interest Shortfall Amounts for the Class 1A-1A, Class 1A-1B, Class 2A-1A, Class
      2A-1B1, Class 2A-1B2, Class 2A-1B3 and Class 2A-1C Certificates and (C) the
      Principal Remittance Amount.

     

    “Net
      Realized Losses”:
      For
      any Class of Certificates and any Distribution Date, the excess of (i) the
      amount of Realized Losses previously allocated to that Class over (ii) the
      amount of any increases to the Class Principal Balance of that Class pursuant
      to
      Section 5.08 due to Recoveries.

     

    “Net
      WAC”:
      With
      respect to any Distribution Date, the weighted average of the Net Loan Rates
      of
      the Mortgage Loans as of the first day of the related Due Period (or, in the
      case of the first Distribution Date, as of the Cut-off Date), weighted on the
      basis of the related Stated Principal Balances at the beginning of the related
      Due Period, provided,
      however,
      that
      for the first two Distribution Dates only, such weighted average of the Net
      Loan
      Rates of the Mortgage Loans will be multiplied
      by
      the
      quotient of (i) the aggregate of the Stated Principal Balances as of the first
      day of the related Due Period of the Mortgage Loans having scheduled payments
      that are included in determining Available Funds for such Distribution Date
      divided
      by
      (ii) the
      sum of (a) the aggregate of the Stated Principal Balances of all of the Mortgage
      Loans as of the first day of the related Due Period and (b) the amount on
      deposit in the Prefunding Account immediately prior to such Distribution
      Date.

     

    “Net
      WAC Cap”:
      For
      the LIBOR Certificates (other than the Class 1A-1B and Class 2A-1C Certificates)
      and any Distribution Date is equal to the product of (x) the Net WAC and (y)
      a
      fraction, the numerator of which is 30 and the denominator of which is the
      actual number of days in the related Accrual Period. For the Class 1A-1B and
      Class 2A-1C Certificates and any Distribution Date is equal to the excess,
      if
      any, of (x) the Net WAC Cap for the Class 1A-1A, Class 2A-1A, Class 2A-1B1,
      Class 2A-1B2, Class 2A-1B3 Certificates and the Subordinate Certificates for
      such Distribution Date over (y) the related Insurer Premium Rate for such
      Distribution Date.

     

    “NIM
      Redemption Amount”:
      As
      defined in Section 10.01(a).

     

    “NIM
      Securities”:
      Any
      net interest margin securities issued by a trust or other special purpose entity
      pursuant to an Indenture, the principal assets of such issuing entity include
      the Class P and Class C Certificates and the payments received thereon, which
      principal assets back such securities.

     

    “NIMS
      Agreement”:
      Any
      agreement pursuant to which the NIM Securities are issued.

     

    “NIMS
      Insurer”:
      One or
      more insurance issuing financial guaranty insurance policies in connection
      with
      the issuance of NIM Securities.

     

    “Nonrecoverable”:
      The
      determination by the Master Servicer or the Servicer in respect of a delinquent
      Mortgage Loan that if it were to make an Advance in respect of thereof, such
      amount would not be recoverable from any collections or other recoveries
      (including Liquidation Proceeds) on such Mortgage Loan.

     

    
      
        
        

      

      
        33

        
          

        

      

      
        
        

      

    

     

    “Notice”:
      As
      defined in the Certificate Insurance Policy.

     

    “Offered
      Certificates”:
      The
      Class 1A-1A, Class 1A-1B, Class 2A-1A, Class 2A-1B1, Class 2A-1B2, Class 2A-1B3,
      Class 2A-1C, Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6
      and Class M-7 Certificates.

     

    “Officers’
      Certificate”:
      A
      certificate signed by the Chairman of the Board, the Vice Chairman of the Board,
      the President or a vice president (however denominated), or by the Treasurer,
      the Secretary, or one of the assistant treasurers or assistant secretaries
      of
      the Seller, the Master Servicer or the Depositor, as applicable.

     

    “One-Month
      LIBOR”:
      The
      average of interbank offered rates for one month U.S. dollar deposits in the
      London market based on quotations of major banks.

     

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

     

    “Original
      Class Principal Balance”:
      With
      respect to each Class of Certificates other than the Class C, Class P and Class
      R Certificates, the corresponding aggregate amount set forth opposite the Class
      designation of such Class in the Preliminary Statement. 

     

    “Originator”:
      Downey
      Savings and Loan Association, F.A.

     

    “OTS”:
      The
      Office of Thrift Supervision.

     

    “Outstanding
      Mortgage Loan”:
      As of
      any Due Date, a Mortgage Loan with a Stated Principal Balance greater than
      zero,
      that was not the subject of a prepayment in full prior to such Due Date and
      that
      did not become a Liquidated Mortgage Loan prior to such Due Date.

     

    “Overcollateralization
      Deficiency Amount”:
      With
      respect to any Distribution Date, the amount, if any, by which the
      Overcollateralization Target Amount exceeds the Overcollateralized Amount on
      such Distribution Date (assuming that 100% of the Principal Remittance Amount
      is
      applied as a principal payment on such Distribution Date).

     

    “Overcollateralization
      Release Amount”:
      With
      respect to any Distribution Date, the lesser of (x) the Principal Remittance
      Amount for such Distribution Date and (y) the excess, if any, of (i) the
      Overcollateralized Amount for such Distribution Date (assuming that 100% of
      the
      Principal Remittance Amount is applied as a principal payment on such
      Distribution Date) over (ii) the Overcollateralization Target Amount for such
      Distribution Date.

     

    “Overcollateralization
      Target Amount”:
      With
      respect to any Distribution Date, an amount equal to (i) prior to the Stepdown
      Date, 0.50% of the sum of the aggregate Stated Principal Balance of the Mortgage
      Loans as of the Cut-off Date, (ii) on or after the Stepdown Date so long as
      a
      Trigger Event is not in effect, the greater of (x) (I) 1.25% of the aggregate
      Stated Principal Balance of the Mortgage Loans prior to the Distribution Date
      in
      September 2012 or (II) 1.00% of the aggregate Stated Principal Balance of the
      Mortgage Loans on or after the Distribution Date in September 2012 and (y)
      0.50%
      of the aggregate Stated Principal Balance of the Mortgage Loans as of the
      Cut-off Date; or (iii) on or after the Stepdown Date and if a Trigger Event
      is
      in effect, the Overcollateralization Target Amount for the immediately preceding
      Distribution Date.

     

    
      
        
        

      

      
        34

        
          

        

      

      
        
        

      

    

     

    “Overcollateralized
      Amount”:
      For
      any Distribution Date, an amount equal to (i) the sum of the aggregate Stated
      Principal Balance of the Mortgage Loans as of the last day of the related
      Prepayment Period (after giving effect to scheduled payments of principal due
      during the related Due Period, to the extent received or advanced, and
      unscheduled collections of principal received during the related Prepayment
      Period) minus (ii) the sum of the aggregate Certificate Principal Balance of
      the
      LIBOR Certificates and the Class P Certificates as of such Distribution Date
      (after giving effect to distributions to be made on such Distribution Date)
      from
      the Principal Remittance Amount.

     

    “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 each Class of Offered Certificates and any Distribution Date, the
      rate set forth below:

     

    
      	(i)  	
              The
                Pass-Through Rate for the Class 1A-1A Certificates with respect to
                any
                Distribution Date shall equal the least of (i) One-Month LIBOR plus
                0.190%
                per annum (0.380% per annum after the Call Option Date), (ii) the Net
                WAC Cap for that Distribution Date and (iii) the Net Maximum Rate
                Cap.
                

            

    

     

    
      	(ii)  	
              The
                Pass-Through Rate for the Class 1A-1B Certificates with respect to
                any
                Distribution Date shall equal the least of (i) One-Month LIBOR plus
                0.190%
                per annum (0.380% per annum after the Call Option Date), (ii) the Net
                WAC Cap for that Distribution Date and (iii) the Net Maximum Rate
                Cap.
                

            

    

     

    
      	(iii)  	
              The
                Pass-Through Rate for the Class 2A-1A Certificates with respect to
                any
                Distribution Date shall equal the least of (i) One-Month LIBOR plus
                0.200%
                per annum (0.400% per annum after the Call Option Date), (ii) the Net
                WAC Cap for that Distribution Date and (iii) the Net Maximum Rate
                Cap.
                

            

    

     

    
      	(iv)  	
              The
                Pass-Through Rate for the Class 2A-1B1 Certificates with respect
                to any
                Distribution Date shall equal the least of (i) One-Month LIBOR plus
                0.090%
                per annum (0.180% per annum after the Call Option Date), (ii) the Net
                WAC Cap for that Distribution Date and (iii) the Net Maximum Rate
                Cap.
                

            

    

     

    
      
        
        

      

      
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      	(v)  	
              The
                Pass-Through Rate for the Class 2A-1B2 Certificates with respect
                to any
                Distribution Date shall equal the least of (i) One-Month LIBOR plus
                0.200%
                per annum (0.400% per annum after the Call Option Date), (ii) the Net
                WAC Cap for that Distribution Date and (iii) the Net Maximum Rate
                Cap.
                

            

    

     

    
      	(vi)  	
              The
                Pass-Through Rate for the Class 2A-1B3 Certificates with respect
                to any
                Distribution Date shall equal the least of (i) One-Month LIBOR plus
                0.310%
                per annum (0.620% per annum after the Call Option Date), (ii) the Net
                WAC Cap for that Distribution Date and (iii) the Net Maximum Rate
                Cap.
                

            

    

     

    
      	(vii)  	
              The
                Pass-Through Rate for the Class 2A-1C Certificates with respect to
                any
                Distribution Date shall equal the least of (i) One-Month LIBOR plus
                0.200%
                per annum (0.400% per annum after the Call Option Date), (ii) the Net
                WAC Cap for that Distribution Date and (iii) the Net Maximum Rate
                Cap.
                

            

    

     

    
      	(viii)  	
              The
                Pass-Through Rate for the Class M-1 Certificates with respect to
                any
                Distribution Date shall equal the least of (i) One-Month LIBOR plus
                0.390%
                per annum (0.585% per annum after the Call Option Date), (ii) the Net
                WAC Cap for that Distribution Date and (iii) the Net Maximum Rate
                Cap.
                

            

    

     

    
      	(ix)  	
              The
                Pass-Through Rate for the Class M-2 Certificates with respect to
                any
                Distribution Date shall equal the least of (i) One-Month LIBOR plus
                0.410%
                per annum (0.615% per annum after the Call Option Date), (ii) the Net
                WAC Cap for that Distribution Date and (iii) the Net Maximum Rate
                Cap.
                

            

    

     

    
      	(x)  	
              The
                Pass-Through Rate for the Class M-3 Certificates with respect to
                any
                Distribution Date shall equal the least of (i) One-Month LIBOR plus
                0.450%
                per annum (0.675% per annum after the Call Option Date), (ii) the Net
                WAC Cap for that Distribution Date and (iii) the Net Maximum Rate
                Cap.
                

            

    

     

    
      	(xi)  	
              The
                Pass-Through Rate for the Class M-4 Certificates with respect to
                any
                Distribution Date shall equal the least of (i) One-Month LIBOR plus
                0.600%
                per annum (0.900% per annum after the Call Option Date), (ii) the Net
                WAC Cap for that Distribution Date and (iii) the Net Maximum Rate
                Cap.
                

            

    

     

    
      	(xii)  	
              The
                Pass-Through Rate for the Class M-5 Certificates with respect to
                any
                Distribution Date shall equal the least of (i) One-Month LIBOR plus
                0.700%
                per annum (1.050% per annum after the Call Option Date), (ii) the Net
                WAC Cap for that Distribution Date and (iii) the Net Maximum Rate
                Cap.
                

            

    

     

    
      
        
        

      

      
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      	(xiii)  	
              The
                Pass-Through Rate for the Class M-6 Certificates with respect to
                any
                Distribution Date shall equal the least of (i) One-Month LIBOR plus
                1.200%
                per annum (1.800% per annum after the Call Option Date), (ii) the Net
                WAC Cap for that Distribution Date and (iii) the Net Maximum Rate
                Cap.
                

            

    

     

    
      	(xiv)  	
              The
                Pass-Through Rate for the Class M-7 Certificates with respect to
                any
                Distribution Date shall equal the least of (i) One-Month LIBOR plus
                1.750%
                per annum (2.625% per annum after the Call Option Date), (ii) the Net
                WAC Cap for that Distribution Date and (iii) the Net Maximum Rate
                Cap.
                

            

    

     

    “Paying
      Agent”:
      Any
      paying agent appointed pursuant to Section 6.05 hereof, initially, the
      Securities Administrator.

     

    “PCAOB”:
      The
      Public Company Accounting Oversight Board.

     

    “Percentage
      Interest”:
      With
      respect to any Certificate (other than a Class C, Class P and Class R
      Certificate), a fraction, expressed as a percentage, the numerator of which
      is
      the Initial Certificate Principal Balance represented by such Certificate and
      the denominator of which is the Original Class Principal Balance or Original
      Class Notional Balance, as applicable, of the related Class. With respect to
      the
      Class C, Class P and Class R Certificates, 100%.

     

    “Permitted
      Investments”:
      Any
      one or more of the following obligations or securities acquired at a purchase
      price of not greater than par, regardless of whether issued or managed by the
      Depositor, the Master Servicer, the Trustee or any of their respective
      Affiliates or for which an Affiliate of the Trustee serves as an
      advisor:

     

    
      	 	
              (i)

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

            

    

     

    
      	 	
              (ii)

            	
              (A)
                demand and time deposits in, certificates of deposit of, bankers’
                acceptances issued by or federal funds sold by any depository institution
                or trust company (including the Trustee, the Securities Administrator
                or
                the Master Servicer or their agents acting in their respective commercial
                capacities) incorporated under the laws of the United States of America
                or
                any state thereof and subject to supervision and examination by federal
                and/or state authorities, so long as, at the time of such investment
                or
                contractual commitment providing for such investment, such depository
                institution or trust company or its ultimate parent has a short-term
                uninsured debt rating in one of the two highest available rating
                categories of each of the Rating Agencies and (B) any other demand
                or time
                deposit or deposit which is fully insured by the
                FDIC;

            

    

     

    
      
        
        

      

      
        37

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (iii)

            	
              repurchase
                obligations with respect to any security described in clause
                (i) above and entered into with a depository institution or trust
                company (acting as principal) rated A or higher by the Rating
                Agencies;

            

    

     

    
      	 	
              (iv)

            	
              securities
                bearing interest or sold at a discount that are issued by any corporation
                incorporated under the laws of the United States of America, the
                District
                of Columbia or any State thereof and that are rated by each Rating
                Agency
                in its highest long-term unsecured rating categories at the time
                of such
                investment or contractual commitment providing for such
                investment;

            

    

     

    
      	 	
              (v)

            	
              commercial
                paper (including both non-interest-bearing discount obligations and
                interest-bearing obligations) that is rated by each Rating Agency
                in its
                highest short-term unsecured debt rating available at the time of
                such
                investment;

            

    

     

    
      	 	
              (vi)

            	
              any
                mutual fund, money market fund, common trust fund or other pooled
                investment vehicle, including any such fund that is managed by the
                NIMS
                Insurer, the Securities Administrator or any affiliate of the Securities
                Administrator or for which the NIMS Insurer, the Securities Administrator
                or any of its affiliates acts as an adviser as long as such fund
                is rated
                in at least the second highest rating category by each Rating Agency
                rating such fund or vehicle; and each of the Securities Administrator
                or
                the NIMS Insurer may trade with itself or an affiliate when purchasing
                or
                selling Permitted Investments; and

            

    

     

    
      	 	
              (vii)

            	
              if
                previously confirmed in writing to the Securities Administrator,
                any other
                demand, money market or time deposit, or any other obligation, security
                or
                investment, as may be acceptable to each Rating Agency in writing
                as a
                permitted investment of funds backing securities having ratings equivalent
                to its highest initial rating of the Senior
                Certificates;

            

    

     

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

     

    “Permitted
      Transferee”:
      Any
      Transferee of a Residual Certificate other than a Disqualified Organization
      or a
      non-U.S. Person.

     

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

     

    “Physical
      Certificates”:
      The
      Class C, Class P and Class R Certificates.

     

    
      
        
        

      

      
        38

        
          

        

      

      
        
        

      

    

     

    “Policy
      Account”:
      The
      trust account or accounts created and maintained by the Securities
      Administrator, on behalf of the Trustee pursuant to Section 4.05 hereof in
      the
      name of the Trustee for the benefit of the Class 1A-1B and Class 2A-1C
      Certificateholders and designated “Policy Account, Wells Fargo Bank, N.A., as
      Securities Administrator, on behalf of Deutsche Bank National Trust Company,
      as
      Trustee, in trust for the registered Certificateholders of DSLA Mortgage Loan
      Trust, DSLA Mortgage Loan Pass-Through Certificates, Series 2006-AR2, Class
      1A-1B and Class 2A-1C Certificates.”

     

    “Pool
      Balance”:
      As to
      any Distribution Date, the aggregate of the Stated Principal Balances, as of
      the
      Close of Business on the first day of the related Due Period, of the Mortgage
      Loans in all Loan Groups that were Outstanding Mortgage Loans on that
      day.

     

    “Pool
      Collateral Balance”:
      As of
      any date of determination, the Pool Balance plus the amount, if any, then on
      deposit in the Prefunding Account.

     

    “Preference
      Amounts”:
      As
      defined in the Certificate Insurance Policy.

     

    “Prefunded
      Amount”:
      The
      amount deposited in the Prefunding Account on the Closing Date, which shall
      equal $195,476,571.

     

    “Prefunding
      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
      Certificateholders and designated “Prefunding Account, Wells Fargo Bank, N.A.,
      as Securities Administrator, on behalf of Deutsche Bank National Trust Company,
      as Trustee, in trust for the registered Holders of DSLA Mortgage Loan Trust,
      Mortgage Loan Pass-Through Certificates, Series 2006-AR2.” Funds in the
      Prefunding Account shall be held in trust for the Certificateholders for the
      uses and purposes set forth in this Agreement and shall not be a part of any
      REMIC created hereunder; provided,
      however,
      that
      any investment income earned from Permitted Investments made with funds in
      the
      Prefunding Account shall be for the account of the Depositor.

     

    “Prefunding
      Period”:
      The
      period from the Closing Date until the earliest of (i) the date on which the
      amount on deposit in the Prefunding Account is reduced to less than $100,000,
      (ii) an Event of Default occurs or (iii) October 12, 2006.

     

    “Premium
      Amount”:
      The
      Class 1A-1B Premium Amount or the Class 2A-1C Premium Amount, as
      applicable.

     

    “Premium
      Proceeds”:
      The
      amount by which the Termination Price paid in connection with the termination
      pursuant to Section 10.01 hereof exceeds the sum of (i) accrued and unpaid
      interest and unpaid principal on the Certificates, (ii) any unreimbursed
      Servicing Advances and Advances and any unpaid Master Servicing Fees and
      Servicing Fees and (iii) all amounts, if any, then due and owing to the Trustee,
      the Master Servicer, the Securities Administrator, the Credit Risk Manager
      and
      the Certificate Insurer under this Agreement.

     

    “Prepayment
      Penalty Amount”:
      With
      respect to any Mortgage Loan and each Distribution Date, all premiums or
      charges, if any, paid by Mortgagors under the related Mortgage Notes as a result
      of full or partial Principal Prepayments collected by the Servicer during the
      immediately preceding Prepayment Period.

     

    
      
        
        

      

      
        39

        
          

        

      

      
        
        

      

    

     

    “Prepayment
      Period”:
      With
      respect to any Distribution Date, the calendar month preceding the month in
      which such Distribution Date occurs.

     

    “Primary
      Insurance Policy”:
      Mortgage guaranty insurance, if any, on an individual Mortgage Loan, as
      evidenced by a policy or certificate.

     

    “Principal
      Balance”:
      As to
      any Mortgage Loan, other than a Liquidated Mortgage Loan, and any day, the
      related Cut-off Date Principal Balance, minus
      all
      collections credited against the Principal Balance of such Mortgage Loan after
      the Cut-off Date, as increased by the amount of any Deferred Interest added
      to
      the outstanding Principal Balance of such Mortgage Loan pursuant to the terms
      of
      the related Mortgage Note. For purposes of this definition, a Liquidated
      Mortgage Loan shall be deemed to have a Principal Balance equal to the Principal
      Balance of the related Mortgage Loan as of the final recovery of related
      Liquidation Proceeds and a Principal Balance of zero thereafter. As to any
      REO
      Property and any day, the Principal Balance of the related Mortgage Loan
      immediately prior to such Mortgage Loan becoming REO Property.

     

    “Principal
      Deficiency Amount”:
      For
      any Distribution Date and for any Undercollateralized Group, the excess, if
      any,
      of the aggregate Class Principal Balance of such Undercollateralized Group
      immediately prior to such Distribution Date over the sum of the Principal
      Balances of the Mortgage Loans in the related Loan Group immediately prior
      to
      such Distribution Date.

     

    “Principal
      Distribution Amount”:
      For
      any Distribution Date and Loan Group, the excess of (x) the related Principal
      Remittance Amount reduced by the lesser of (a) Principal Prepayments received
      for the related Loan Group during the related Prepayment Period and (b) the
      amount of Deferred Interest added to the Principal Balance of the Mortgage
      Loans
      in the related Loan Group on the Due Date in the month of such Distribution
      Date
      over (y) such Loan Group’s pro rata share, based on the aggregate outstanding
      Principal Balance of the Mortgage Loans, of the Overcollateralization Release
      Amount for such Distribution Date.

     

    “Principal
      Remittance Amount”:
      With
      respect to each Loan Group and any Distribution Date, the sum of (a) each
      scheduled payment of principal collected or advanced on the related Mortgage
      Loans (before taking into account any Deficient Valuations or Debt Service
      Reductions) by the Servicer or the Master Servicer in respect of the related
      Due
      Period, (b) that portion of the Purchase Price or Repurchase Price, as
      applicable, representing principal of any repurchased Mortgage Loan in that
      Loan
      Group, deposited to the Distribution Account during the related Prepayment
      Period, (c) the principal portion of any related Substitution Adjustments
      with respect to that Loan Group deposited in the Distribution Account during
      the
      related Prepayment Period, (d) the principal portion of all Insurance
      Proceeds received during the related Prepayment Period with respect to Mortgage
      Loans in that Loan Group that are not yet Liquidated Mortgage Loans,
      (e) the principal portion of all Net Liquidation Proceeds received during
      the related Prepayment Period with respect to Liquidated Mortgage Loans in
      that
      Loan Group other than Recoveries, (f) all Principal Prepayments in part or
      in full on Mortgage Loans received by the Servicer during the related Prepayment
      Period,
      net of
      Deferred Interest,
      (g) all
      Recoveries related to that Loan Group received during the related Prepayment
      Period, (h) the outstanding principal balance of each Mortgage Loan purchased
      from the Trust Fund by the NIMS Insurer (in the case of certain Mortgage Loans
      90 days or more delinquent) and (i) on
      the Distribution Date on which the Trust Fund is to be terminated pursuant
      to
      Section 10.01 hereof, that portion of the Termination Price in respect of
      principal for that Loan Group.

     

    
      
        
        

      

      
        40

        
          

        

      

      
        
        

      

    

     

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

     

    “Private
      Certificates”:
      The
      Class C, Class P and Class R Certificates.

     

    “Pro
      Rata Share”:
      As to
      any Distribution Date and any Class of Subordinate Certificates, the portion
      of
      the Subordinate Principal Distribution Amount allocable to such Class, equal
      to
      the product of the (a) Subordinate Principal Distribution Amount on such date
      and (b) a fraction, the numerator of which is the related Class Principal
      Balance of that Class and the denominator of which is the aggregate of the
      Class
      Principal Balances of all the Classes of Subordinate Certificates.

     

    “Proprietary
      Lease”:
      With
      respect to any Cooperative Unit, a lease or occupancy agreement between a
      Cooperative Corporation and a holder of related Cooperative Shares.

     

    “Prospectus”:
      The
      Prospectus Supplement, together with the accompanying prospectus, dated August
      10, 2006, relating to the Offered Certificates.

     

    “Prospectus
      Supplement”:
      That
      certain prospectus supplement dated September 11, 2006, relating to the initial
      offering of the Offered Certificates.

     

    “Purchase
      Agreement”:
      Each
      of (i) the Master Mortgage Loan Purchase and Interim Servicing Agreement, dated
      as of September 1, 2004, as amended by that certain Amendment Number One dated
      as of October 28, 2004 and that certain Amendment Number Two dated as of
      September 23, 2005, between GCFP and Downey and (ii) Master Mortgage Loan
      Purchase and Interim Servicing Agreement, dated as of December 31, 2005, between
      GCFP and Downey, as each may be amended from time to time, and any assignments
      and conveyances related to the Mortgage Loans.

     

    “Purchase
      Price”:
      With
      respect to any Mortgage Loan or REO Property to be purchased pursuant to or
      as
      contemplated by Section 2.03 hereof, and as confirmed by an Officers’
Certificate from the Seller to the Trustee and the Securities Administrator,
      an
      amount equal to the sum of (i) 100% of the Principal Balance thereof as of
      the date of purchase (or such other price as is provided in Section 10.01),
      plus
      (ii) in the case of (x) a Mortgage Loan, accrued interest on such
      Principal Balance at the applicable Loan Rate (or if the Servicer is
      repurchasing such Mortgage Loan, the Loan Rate minus the Servicing Fee Rate)
      from the Due Date as to which interest was last covered by a payment by the
      Mortgagor through the end of the calendar month in which the purchase is to
      be
      effected, and (y) an REO Property, the sum of (1) accrued interest on
      such Principal Balance at the applicable Loan Rate (or if the Servicer is
      repurchasing such Mortgage Loan, the Loan Rate minus the Servicing Fee Rate)
      from the Due Date as to which interest was last covered by a payment by the
      Mortgagor plus (2) REO Imputed Interest for such REO Property for each calendar
      month commencing with the calendar month in which such REO Property was acquired
      and ending with the calendar month in which such purchase is to be effected,
      net
      of the total of all net rental income, Insurance Proceeds and Liquidation
      Proceeds that as of the date of purchase had been distributed as or to cover
      REO
      Imputed Interest, plus (iii) any unreimbursed Servicing Advances and any
      unpaid Expense Fees allocable to such Mortgage Loan or REO Property, plus
      (iv) in the case of a Mortgage Loan required to be purchased pursuant to
      Section 2.03 hereof, expenses reasonably incurred or to be incurred by the
      Trustee in respect of the breach or defect giving rise to the purchase
      obligation and plus (v) any costs and damages incurred by the Trust in
      connection with any violation by such Mortgage Loan of any predatory- or
      abusive-lending laws.

     

    
      
        
        

      

      
        41

        
          

        

      

      
        
        

      

    

     

    “Qualified
      Insurer”:
      A
      mortgage guaranty insurance company duly qualified as such under the laws of
      the
      state of its principal place of business and each state having jurisdiction
      over
      such insurer in connection with the insurance policy issued by such insurer,
      duly authorized and licensed in such states to transact a mortgage guaranty
      insurance business in such states and to write the insurance provided by the
      insurance policy issued by it, and having a claims paying ability which is
      acceptable to each Rating Agency for pass-through certificates without a
      certificate insurance policy having the same ratings on the Certificates rated
      by each Rating Agency as of the Closing Date. Any replacement insurer with
      respect to a Mortgage Loan must have at least as high a claims paying ability
      rating as the insurer it replaces had on the Closing Date.

     

    “Qualified
      Substitute Mortgage Loan”:
      A
      mortgage loan substituted for a Deleted Mortgage Loan pursuant to the terms
      of
      this Agreement which must, on the date of such substitution, (i) have an
      outstanding principal balance, after application of all scheduled payments
      of
      principal and interest due during or prior to the month of substitution, not
      in
      excess of, and not more than 5% less than, the Principal Balance of the Deleted
      Mortgage Loan as of the Due Date in the calendar month during which the
      substitution occurs, (ii) have a maximum loan rate not less than the
      Maximum Loan Rate of the Deleted Mortgage Loan, (iii)  have a gross margin
      equal to or greater than the Gross Margin of the Deleted Mortgage Loan, (iv)
      have the same Index as the Deleted Mortgage Loan, (v) have its next adjustment
      date not more than two months after the next Adjustment Date of the Deleted
      Mortgage Loan, (vi) have a remaining term to maturity not greater than (and
      not
      more than one year less than) that of the Deleted Mortgage Loan, (vii) be
      current as of the date of substitution, (viii) have a Loan-to-Value Ratio
      and a Loan-to-Collateral Value Ratio as of the date of substitution equal to
      or
      lower than the Loan-to-Value Ratio and the Loan-to-Collateral Value Ratio,
      respectively, of the Deleted Mortgage Loan as of such date, (ix) have been
      underwritten or re-underwritten in accordance with the same or substantially
      similar underwriting criteria and guidelines as the Deleted Mortgage Loan,
      (x)
      is of the same or better credit quality as the Deleted Mortgage Loan and
      (xi) conform to each representation and warranty set forth in Section 2.04
      hereof applicable to the Deleted Mortgage Loan. In the event that one or more
      mortgage loans are substituted for one or more Deleted Mortgage Loans, the
      amounts described in clause (i) hereof shall be determined on the basis of
      aggregate principal balances, the terms described in clause (vi) hereof
      shall be determined on the basis of weighted average remaining term to maturity,
      the Loan-to-Value Ratio and Loan-to-Collateral Value Ratio described in clause
      (viii) hereof shall be satisfied as to each such mortgage loan and, except
      to the extent otherwise provided in this sentence, the representations and
      warranties described in clause (x) hereof must be satisfied as to each
      Qualified Substitute Mortgage Loan or in the aggregate, as the case may
      be.

     

    
      
        
        

      

      
        42

        
          

        

      

      
        
        

      

    

     

    “Rating
      Agency”:
      Each
      of DBRS, S&P and Moody’s and any respective successors thereto. If DBRS,
      Moody’s, S&P or their respective successors shall no longer be in existence,
“Rating Agency” shall include such nationally recognized statistical rating
      agency or agencies, or other comparable Person or Persons, as shall have been
      designated by the Depositor, notice of which designation shall be given to
      the
      Trustee and the Master Servicer.

     

    “Realized
      Loss”:
      With
      respect to any Liquidated Mortgage Loan, the amount of loss realized equal
      to
      the portion of the Principal Balance remaining unpaid after application of
      all
      Net Liquidation Proceeds in respect of such Liquidated Mortgage
      Loan.

     

    “Recognition
      Agreement”:
      With
      respect to any Cooperative Loan, an agreement between the related Cooperative
      Corporation and the originator of such Mortgage Loan to establish the rights
      of
      such originator in the related Cooperative Property.

     

    “Reconstitution
      Agreement”:
      Each
      of the reconstitution agreements dated as of August 1, 2006 among the Seller,
      the Depositor and the Servicer and acknowledged by the Master Servicer and
      the
      Trustee, reconstituting the Servicing Agreements.

     

    “Record
      Date”:
      With
      respect to each Distribution Date and the LIBOR Certificates, the Business
      Day
      preceding the applicable Distribution Date so long as such Certificates remain
      Book-Entry Certificates and otherwise the Record Date shall be same as the
      other
      Classes of Certificates. For each other Class of Certificates, the last Business
      Day of the calendar month preceding the month in which such Distribution Date
      occurs.

     

    “Recovery”:
      With
      respect to any Distribution Date and a Mortgage Loan that became a Liquidated
      Mortgage Loan in the month preceding the month prior to that Distribution Date
      and with respect to which the related Realized Loss was allocated to one or
      more
      Classes of Certificates, an amount received in respect of such Liquidated
      Mortgage Loan during the prior calendar month, net of any reimbursable
      expenses.

     

    “Reference
      Bank:”
A
      leading bank engaged in transactions in Eurodollar deposits in the international
      Eurocurrency market, which shall not control, be controlled by, or be under
      common control with, the Securities Administrator and shall have an established
      place of business in London. Until all of the LIBOR Certificates are paid in
      full, the Securities Administrator will at all times retain at least four
      Reference Banks for the purpose of determining LIBOR with respect to each LIBOR
      Determination Date. The Securities Administrator initially shall designate
      the
      Reference Banks (after consultation with the Depositor). If any such Reference
      Bank should be unwilling or unable to act as such or if the Securities
      Administrator should terminate its appointment as Reference Bank, the Securities
      Administrator shall promptly appoint or cause to be appointed another Reference
      Bank (after consultation with the Depositor). The Securities Administrator
      shall
      have no liability or responsibility to any Person for (i) the selection of
      any
      Reference Bank for purposes of determining LIBOR or (ii) any inability to retain
      at least four Reference Banks which is caused by circumstances beyond its
      reasonable control.

     

    
      
        
        

      

      
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    “Refinancing
      Mortgage Loan”:
      Any
      Mortgage Loan originated in connection with the refinancing of an existing
      mortgage loan.

     

    “Regular
      Certificate”:
      Any
      Certificate other than the Class C, Class P and Class R
      Certificates.

     

    “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 clarifications and interpretations as have been provided by the Commission
      in the adopting release (Asset-Backed Securities, Securities Act Release No.
      33-8518, 70 Fed. Reg. 1,506, 1,531 (Jan. 7, 2005)) or by the staff of the
      Commission, or as may be provided by the Commission or its staff from time
      to
      time.

     

    “Regulation S”:
      Regulation S promulgated under the Securities Act or any successor
      provision thereto, in each case as the same may be amended from time to time;
      and all references to any rule, section or subsection of, or definition or
      term
      contained in, Regulation S means such rule, section, subsection, definition
      or term, as the case may be, or any successor thereto, in each case as the
      same
      may be amended from time to time.

     

    “Regulation
      S Global Security”:
      The
      meaning specified in Section 6.01.

     

    “Relevant
      Servicing Criteria”:
      The
      Servicing Criteria applicable to each party, as set forth on Exhibit Q attached
      hereto. 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, in its capacity as
      Custodian, or the Servicer, the term “Relevant Servicing Criteria” may refer to
      a portion of the Relevant Servicing Criteria applicable to such
      parties.

     

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

     

    “Relief
      Act Reductions”:
      With
      respect to any Distribution Date and any Mortgage Loan as to which there has
      been a reduction in the amount of interest collectible thereon for the most
      recently ended Due Period as a result of the application of the Relief Act,
      the
      amount, if any, by which (i) interest collectible on that Mortgage Loan during
      such Due Period is less than (ii) one month’s interest on the Stated Principal
      Balance of such Mortgage Loan at the Loan Rate for such Mortgage Loan before
      giving effect to the application of the Relief Act.

     

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

     

    “REMIC
      Opinion”:
      An
      Independent Opinion of Counsel, to the effect that the proposed action described
      therein would not cause an Adverse REMIC Event.

     

    
      
        
        

      

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

     

    “Remittance
      Report”:
      The
      Master Servicer’s Remittance Report to the Securities Administrator providing
      information with respect to each Mortgage Loan which is provided no later than
      the second Business Day following each Determination Date and which shall
      contain such information as may be agreed upon by the Master Servicer and the
      Securities Administrator and which shall be sufficient to enable the Securities
      Administrator to prepare the related Distribution Date Statement.

     

    “Rents
      from Real Property”:
      With
      respect to any REO Property, gross income of the character described in Section
      856(d) of the Code.

     

    “REO
      Account”:
      The
      account or accounts maintained by the Servicer in respect of an REO Property
      pursuant to the Servicing Agreement.

     

    “REO
      Disposition”:
      The
      sale or other disposition of an REO Property on behalf of the Trust
      Fund.

     

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

     

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

     

    “REO
      Property”:
      A
      Mortgaged Property acquired by the Servicer on behalf of the Trust Fund through
      foreclosure or deed-in-lieu of foreclosure in accordance with the applicable
      provisions of the Servicing Agreement.

     

    “Reportable
      Event”:
      As
      defined in Section 3.19(c).

     

    
      
        
        

      

      
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    “Request
      for Release”:
      A
      release signed by a Servicing Officer, in the form of Exhibit F attached
      hereto.

     

    “Required
      Reserve Fund Deposit”:
      With
      respect to the Class C Certificates and any Distribution Date, an amount equal
      to the lesser of (i) the Net Monthly Excess Cashflow otherwise distributable
      to
      the Class C Certificates for such Distribution Date and (ii) the amount required
      to bring the balance on deposit in the Basis Risk Reserve Fund to an amount
      equal to the greater of (a) the unpaid Basis Risk Shortfalls for such
      Distribution Date with respect to the LIBOR certificates and (b)
      $1,000.

     

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

     

    “Residual
      Certificate”:
      The
      Class R Certificates.

     

    “Responsible
      Officer”:
      When
      used with respect to the Trustee or the Securities Administrator, any director,
      any vice president, any assistant vice president, any associate assigned to
      the
      Corporate Trust Office of the Trustee or the Securities Administrator, as
      applicable, (or similar group) or any other officer of the Trustee or the
      Securities Administrator customarily performing functions similar to those
      performed by any of the above designated officers and, with respect to a
      particular matter, to whom such matter is referred because of such officer’s
      knowledge of and familiarity with the particular subject. When used with respect
      to the Master Servicer, any director, any vice president, any assistant vice
      president, any associate assigned to the office specified in Section 12.05
      of
      the Master Servicer (or similar group) or any other officer of the Master
      Servicer customarily performing functions similar to those performed by any
      of
      the above designated officers and, with respect to a particular matter, to
      whom
      such matter is referred because of such officer’s knowledge of and familiarity
      with the particular subject.

     

    “Restricted
      Global Security”:
      As
      defined in Section 6.01.

     

    “S&P”:
      Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies,
      Inc. or any successor thereto.

     

    “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 of 2002, as amended from time to time, and
      (ii)
      Exchange Act Rules 13a-14(d) and 15d-14(d), as in effect from time to time;
      provided that if, after the Closing Date (a) the Sarbanes-Oxley Act of 2002
      is
      amended, (b) the Rules referred to in clause (ii) are modified or 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 Securities and Exchange Commission from time to time pursuant
      to the Sarbanes-Oxley Act of 2002, which in any such case affects the form
      or
      substance of the required certification and results in the required
      certification being, in the reasonable judgment of the Master Servicer,
      materially more onerous than the form of the required certification as of the
      Closing Date, the Sarbanes-Oxley Certification shall be as agreed to by the
      Master Servicer, the Depositor and the Seller following a negotiation in good
      faith to determine how to comply with any such new requirements.

     

    
      
        
        

      

      
        46

        
          

        

      

      
        
        

      

    

     

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

     

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

     

    “Security
      Agreement”:
      With
      respect to any Cooperative Loan, the agreement between the owner of the related
      Cooperative Shares and the originator of the related Mortgage Note that defines
      the terms of the security interest in such Cooperative Shares and the related
      Proprietary Lease.

     

    “Seller”:
      GCFP,
      in its capacity as seller under this Agreement.

     

    “Senior
      Certificate”:
      Any
      one of the Class 1A-1A, Class 1A-1B, Class 2A-1A, Class 2A-1B1, Class 2A-1B2,
      Class 2A-1B3 and Class 2A-1C Certificates.

     

    “Senior
      Certificate Group”:
      Either
      (a) the Class 1A-1A and Class 1A-1B Certificates with respect to Loan Group
      1 or
      (b) the Class 2A-1A, Class 2A-1B1, Class 2A-1B2, Class 2A-1B3 and Class 2A-1C
      Certificates with respect to Loan Group 2.

     

    “Senior
      Certificateholder”:
      Any
      Holder of a Senior Certificate.

     

    “Senior
      Credit Support Depletion Date”:
      The
      date on which the Class Principal Balance of each Class of Subordinate
      Certificates has been reduced to zero.

     

    “Senior
      Principal Distribution Amount”:
      For
      any Distribution Date, an amount equal to the excess of (x) the aggregate class
      principal balance of the Senior Certificates immediately prior to such
      Distribution Date over (y) the lesser of (A) the product of (i) for each
      Distribution Date prior to September 2012, 82.125% and thereafter 85.700% and
      (ii) the sum of (x) the Stated Principal Balances of the Mortgage Loans as
      of
      the last day of the related Prepayment Period (after giving effect to scheduled
      payments of principal due during the related Due Period, to the extent received
      or advanced, and unscheduled collections of principal received during the
      related Prepayment Period) and (y) the amount on deposit in the Prefunding
      Account as of the last day of the related Prepayment Period and (B) the sum
      of
      (x) the Stated Principal Balances of the Mortgage Loans as of the last day
      of
      the related Prepayment Period (after giving effect to scheduled payments of
      principal due during the related Due Period, to the extent received or advanced,
      and unscheduled collections of principal received during the related Prepayment
      Period) and (y) the amount on deposit in the Prefunding Account as of the last
      day of the related Prepayment Period minus
      approximately $6,050,000.

     

    
      
        
        

      

      
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    “Senior
      Termination Date”:
      For
      each Senior Certificate Group, the Distribution Date on which the aggregate
      of
      the Class Principal Balances of the related Senior Certificates is reduced
      to
      zero.

     

    “Servicer”:
      Downey
      Savings and Loan Association, F.A., and any successors thereto.

     

    “Servicer
      Remittance Date”:
      With
      respect to each Mortgage Loan, the 18th
      day of
      each month, or if such 18th
      day is
      not a Business Day, the preceding Business Day.

     

    “Servicing
      Account”:
      Any
      account established and maintained for the benefit of the Trust Fund by the
      Servicer or with respect to the related Mortgage Loans and any REO Property,
      pursuant to the terms of the Servicing Agreement.

     

    “Servicing
      Advances”:
      With
      respect to the Servicer and the Master Servicer (including the Trustee in its
      capacity as successor Master Servicer), all customary, reasonable and necessary
      “out of pocket” costs and expenses (including reasonable attorneys’ fees and
      expenses) incurred by the Servicer in the performance of its servicing
      obligations under the Servicing Agreement or by the Master Servicer (including
      the Trustee in its capacity as successor Master Servicer) in the performance
      of
      its obligations hereunder, including, but not limited to, the cost of (i) the
      preservation, restoration, inspection and protection of the Mortgaged Property,
      (ii) any enforcement or judicial proceedings, including foreclosures, (iii)
      the
      management and liquidation of the REO Property and (iv) any other expenses
      permitted to be reimbursed as Servicing Advances under the Servicing Agreement,
      as applicable.

     

    “Servicing
      Agreement”:
      The
      Purchase Agreement, as reconstituted by the Reconstitution Agreement, as the
      same may be amended from time to time.

     

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

     

    “Servicing
      Fee”:
      With
      respect to each Mortgage Loan and for any calendar month, the fee payable to
      the
      Servicer as set forth on the Mortgager Loan Schedule.

     

    “Servicing
      Fee Rate”:
      With
      respect to each Mortgage Loan, the per annum rate of 0.3750%. 

     

    “Servicing
      Function Participant”:
      The
      Servicer, any Subservicer, Subcontractor of the Servicer, the Master Servicer,
      a
      Custodian and the Securities Administrator, respectively.

     

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

     

    “Sponsor”:
      Greenwich Capital Financial Products, Inc., in its capacity as sponsor under
      this Agreement.

     

    
      
        
        

      

      
        48

        
          

        

      

      
        
        

      

    

     

    “Startup
      Day”:
      As
      defined in Section 9.01(b) hereof.

     

    “Stated
      Principal Balance”:
      With
      respect to any Mortgage Loan: (a) as of the Distribution Date in September
      2006,
      the Cut-off Date Principal Balance of such Mortgage Loan,  (b) thereafter
      as of any date of determination up to and including the Distribution Date on
      which the proceeds, if any, of a Liquidation Event with respect to such Mortgage
      Loan would be distributed, the Cut-off Date Principal Balance of such Mortgage
      Loan, minus,
      in the
      case of each Mortgage Loan, the sum of (i) the principal portion of each
      Monthly Payment due on a Due Date subsequent to the Cut-off Date, whether or
      not
      received, (ii) all Principal Prepayments received after the Cut-off Date,
      to the extent distributed pursuant to Section 5.01 before such date of
      determination and (iii) all Liquidation Proceeds and Insurance Proceeds
      applied by the Servicer as recoveries of principal in accordance with the
      applicable provisions of the Servicing Agreement, to the extent distributed
      pursuant to Section 5.01 before such date of determination; and (c) as of
      any date of determination subsequent to the Distribution Date on which the
      proceeds, if any, of a Liquidation Event with respect to such Mortgage Loan
      would be distributed, zero. With respect to any REO Property: (x) as of any
      date of determination up to and including the Distribution Date on which the
      proceeds, if any, of a Liquidation Event with respect to such REO Property
      would
      be distributed, an amount (not less than zero) equal to the Stated Principal
      Balance of the related Mortgage Loan as of the date on which such REO Property
      was acquired on behalf of the Trust Fund, minus the aggregate amount of REO
      Principal Amortization in respect of such REO Property for all previously ended
      calendar months, to the extent distributed pursuant to Section 5.01 before
      such date of determination; and (y) as of any date of determination
      subsequent to the Distribution Date on which the proceeds, if any, of a
      Liquidation Event with respect to such REO Property would be distributed,
      zero.

     

    “Stepdown
      Date”:
      The
      earlier to occur of (i) the first Distribution Date on which the aggregate
      Certificate Principal Balance of the Class 1A-1A, Class 1A-1B, Class 2A-1A,
      Class 2A-1B1, Class 2A-1B2, Class 2A-1B3 and Class 2A-1C Certificates has been
      reduced to zero and (ii) the later to occur of (x) the Distribution Date
      occurring in September 2009 and (y) the first Distribution Date on which the
      Credit Enhancement Percentage (calculated for this purpose only after taking
      into account distributions of principal on the Mortgage Loans and before
      distribution of the Principal Distribution Amount to the holders of the
      Certificates then entitled to distributions of principal on such Distribution
      Date) is greater than or equal to (a) prior to the Distribution Date in
      September 2012, 17.875% and (b) on or after the Distribution Date in September
      2012, 14.300%.

     

    “Strike
      Rate”:
      Not
      applicable.

     

    “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 the Servicer (or a Subservicer of the Servicer),
      the Master Servicer, the Trustee, the Custodian or the Securities
      Administrator.

     

    “Subordinate
      Adjusted Cap Rate”:
      For
      any Distribution Date and the Subordinate Certificates, the weighted average
      of
      the Group 1 Adjusted Cap Rate and the Group 2 Adjusted Cap Rate for such
      Distribution Date, weighted in either case based upon the applicable Subordinate
      Component for such Loan Group.

     

    
      
        
        

      

      
        49

        
          

        

      

      
        
        

      

    

     

    “Subordinate
      Certificate”:
      Any of
      the Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6 or Class
      M-7 Certificates.

    

    “Subordinate
      Class Expense Share”:
      For
      each Class of Subordinate Certificates and each Accrual Period, the Subordinate
      Class Expense Share shall be allocated in reverse order of their respective
      numerical Class designations (beginning with the Class of Subordinate
      Certificates with the highest numerical Class designation) and will be an amount
      equal to (i) the sum of, without duplication, (a) the amounts paid to the
      Trustee from the Trust Fund during such Accrual Period pursuant to Section
      8.05
      hereof to the extent such amounts were paid for ordinary or routine expenses
      and
      were not taken into account in computing the Net Loan Rate of any Mortgage
      Loan
      and (b) amounts described in clause (y) of the definition of Available Funds
      herein to the extent such amounts were paid for ordinary or routine expenses
      and
      were not taken into account in computing the Net Loan Rate of any Mortgage
      Loan
minus
      (ii)
      amounts taken into account under clause (i) of this definition in determining
      the Subordinate Class Expense Share of any Class of Subordinate Certificates
      having a higher numeric designation. In no event, however, shall the Subordinate
      Class Expense Share for any Class of Subordinate Certificates and any Accrual
      Period exceed the product of (i) (a) the lesser of the Pass-Through Rate for
      such Class or the Subordinate Adjusted Cap Rate, divided
      by
      (b) 12
      and (ii) the Class Principal Amount of such Class of Subordinate Certificates
      as
      of the beginning of the related Accrual Period.

     

    “Subordinate
      Component”:
      With
      respect to each Loan Group and any Distribution Date, the excess of the sum
      of
      the related Pool Collateral Balance for such Distribution Date over the
      aggregate Class Principal Balance of the related Senior Certificate Group
      immediately preceding such Distribution Date. The designation “1” and “2”
appearing after the corresponding Loan Group designation is used to indicate
      a
      Subordinate Component allocable to Loan Group 1 and Loan Group 2,
      respectively.

     

    “Subsequent
      Cut-off Date”:
      With
      respect to any Subsequent Mortgage Loan, the later of (a) the first day of
      the
      month of the conveyance of such Mortgage Loan to the Trust after giving effect
      to the monthly payment on that date or (b) the date such Mortgage Loan was
      originated.

     

    “Subsequent
      Mortgage Loan”:
      Any
      Mortgage Loan, other than an Initial Mortgage Loan, conveyed to the Trust Fund
      pursuant to Section 2.01 hereof and a Subsequent Transfer Agreement, which
      Mortgage Loan shall be listed on the revised Mortgage Loan Schedule delivered
      pursuant to this Agreement and on Schedule A to such Subsequent Transfer
      Agreement. When used with respect to a single Subsequent Transfer Date,
      Subsequent Mortgage Loan shall mean a Subsequent Mortgage Loan conveyed to
      the
      Trust on that Subsequent Transfer Date.

     

    “Subsequent
      Transfer Agreement”:
      A
      Subsequent Transfer Agreement substantially in the form of Exhibit P hereto,
      executed and delivered by and among the Depositor, the Seller and the Trustee
      and acknowledged by the Servicer, as provided in Section 2.01(b)
      hereof.

     

    
      
        
        

      

      
        50

        
          

        

      

      
        
        

      

    

     

    “Subsequent
      Transfer Date”:
      With
      respect to any Subsequent Transfer Agreement, the date the related Subsequent
      Mortgage Loans are transferred to the Trust pursuant to the related Subsequent
      Transfer Agreement.

     

    “Subservicer”:
      Any
      Person that services Mortgage Loans on behalf of the Servicer, the Master
      Servicer, the Securities Administrator or the Custodian, and is responsible
      for
      the performance (whether directly or through subservicers or Subcontractors)
      of
      servicing functions required to be performed under this Agreement, any related
      Servicing Agreement or any subservicing agreement that are identified in Item
      1122(d) of Regulation AB.

     

    “Substitution
      Adjustment”:
      As
      defined in Section 2.03(d) hereof.

     

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

     

    “Telerate
      Page 3750”:
      The
      display currently so designated as “Page 3750” on the Bridge Telerate Service
      (or such other page selected by the Securities Administrator as may replace
      Page
      3750 on that service for the purpose of displaying daily comparable rates on
      prices).

     

    “Termination
      Price”:
      As
      defined in Section 10.01(a) hereof. 

     

    “Transfer”:
      Any
      direct or indirect transfer or sale of any Ownership Interest in a Residual
      Certificate.

     

    “Transfer
      Affidavit”:
      As
      defined in Section 6.02(e)(ii) hereof.

     

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

     

    “Trigger
      Event”:
      With
      respect to any Distribution Date on or after the Stepdown Date, occurs
      when:

     

    (a) the
      sum
      of the percentages obtained by dividing (x) the aggregate Stated Principal
      Balance of Mortgage Loans delinquent 60 days or more, that are in foreclosure
      or
      that are REO Properties by (y) the aggregate Stated Principal Balance of the
      Mortgage Loans, in each case, as of the last day of the previous calendar month,
      exceeds (i) prior to the Distribution Date in September 2012, 35.04% of the
      current Credit Enhancement Percentage or (ii) on or after the Distribution
      Date
      in September 2012, 40.00% of the current Credit Enhancement Percentage;
      or

     

    (b) the
      aggregate amount of Realized Losses incurred since the Cut-off Date through
      the
      last day of the related Due Period (reduced by the aggregate amount of
      Recoveries received since the Cut-off Date through the last day of the related
      Due Period) divided
      by
      the
      aggregate Stated Principal Balance of the Mortgage Loans as of the Cut-off
      Date
      exceeds the applicable percentages set forth below with respect to such
      Distribution Date:

     

    
      
        
        

      

      
        51

        
          

        

      

      
        
        

      

    

     

    
      	
              Distribution
                Date Occurring In

            	
              Percentage

            
	 	 
	
              September
                2008 –
                August 2009

            	
              0.20%
                for the first month plus an additional 1/12th
                of
                0.30% for each month thereafter

            
	
              September
                2009 – August 2010

            	
              0.50%
                for the first month plus an additional 1/12th
                of
                0.35% for each month thereafter

            
	
              September
                2010 – August 2011

            	
              0.85%
                for the first month plus an additional 1/12th
                of
                0.40% for each month thereafter

            
	
              September
                2011 – August 2012 

            	
              1.25%
                for the first month plus an additional 1/12th
                of
                0.45% for each month thereafter

            
	
              September
                2012 and thereafter

            	
              1.75%
                

            

    

    

    “Trust
      Fund”:
      The
      segregated pool of assets subject hereto, constituting the primary trust created
      hereby and to be administered hereunder, with respect to which a REMIC election
      is to be made, such Trust Fund consisting of: (i) such Mortgage Loans as from
      time to time are subject to this Agreement, together with the Mortgage Files
      relating thereto, and together with all collections thereon and proceeds
      thereof, (ii) any REO Property, together with all collections thereon and
      proceeds thereof, (iii) the Trustee’s rights with respect to the Mortgage Loans
      under all insurance policies required to be maintained pursuant to this
      Agreement and any proceeds thereof, (iv) the Depositor’s rights under the
      Mortgage Loan Purchase Agreement (including any security interest created
      thereby); (v) the Distribution Account (subject to the last sentence of this
      definition), any REO Account and such assets that are deposited therein from
      time to time and any investments thereof, together with any and all income,
      proceeds and payments with respect thereto, (vi) all right, title and
      interest of the Seller in and to the Servicing Agreement, (vii) the Basis
      Risk Reserve Fund, the Prefunding Account and the Final Maturity Reserve Fund,
      (viii) the Certificate Insurance Policy and (ix) all proceeds of the
      foregoing. Notwithstanding the foregoing, however, the Trust Fund specifically
      excludes (1) all payments and other collections of interest and principal due
      on
      the Mortgage Loans on or before the Cut-off Date and principal received before
      the Cut-off Date (except any principal collected as part of a payment due after
      the Cut-off Date) and (2) all income and gain realized from Permitted
      Investments of funds on deposit in the Distribution Account.

     

    “Trustee”:
      Deutsche Bank National Trust Company, not in its individual capacity but solely
      as trustee, a national banking association, its successors or assigns, or any
      successor trustee appointed as herein provided.

     

    “Trustee
      Fee”:
      The
      annual on-going fee as agreed to by the Trustee and the Master Servicer and
      payable by the Master Servicer on behalf of the Trust Fund to the Trustee from
      the Master Servicer’s own funds pursuant to the terms of the separate fee letter
      agreement between the Trustee and the Master Servicer.

     

    “Undercollateralized
      Group”:
      With
      respect to any Distribution Date and any Loan Group as to which the aggregate
      Class Principal Balance of the related Classes of Senior Certificates, after
      giving effect to distributions pursuant to Section 5.01(a) on such date, is
      greater than the Loan Group Balance of the related Loan Group for such
      Distribution Date, such Classes of Senior Certificates shall constitute an
      Undercollateralized Group.

     

    
      
        
        

      

      
        52

        
          

        

      

      
        
        

      

    

     

    “Underwriter’s
      Exemption”:
      Prohibited Transaction Exemption 90-59 (Exemption Application No. D-8374),
      as
      amended by PTE 97-34 (Exemption Application No. D-10245 and D-10246) and by
      PTE
      2000-58 (Exemption Application No. D-10829) and PTE 2002-41 (Exemption
      Application No. D-11077), as amended (or any successor thereto), or any
      substantially similar administrative exemption granted by the U.S. Department
      of
      Labor. 

     

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

     

    “United
      States Person”
or
      “U.S.
      Person”:
      A
      citizen or resident of the United States, a corporation, partnership or other
      entity treated as a corporation or partnership for federal income tax purposes
      (other than a partnership that is not treated as a U.S. Person pursuant to
      any
      applicable Treasury regulations) created or organized in, or under the laws
      of,
      the United States, any state thereof or the District of Columbia, or an estate
      the income of which from sources without the United States is includible in
      gross income for United States federal income tax purposes regardless of its
      connection with the conduct of a trade or business within the United States,
      or
      a trust if a court within the United States is able to exercise primary
      supervision over the administration of the trust and one or more United States
      persons have authority to control all substantial decisions of the trust. The
      term “United States” shall have the meaning set forth in Section 7701 of
      the Code or successor provisions.

     

    “Unpaid
      Basis Risk Shortfall”:
      For
      each Class of Offered Certificates and any Distribution Date, the aggregate
      of
      all Basis Risk Shortfalls for such Class remaining unpaid from all previous
      Distribution Dates, together with interest thereon at the applicable
      Pass-Through Rate, computed without regard to the applicable Net WAC Cap, but
      limited to a rate no greater than the Net Maximum Rate Cap.

     

    “Unpaid
      Interest Shortfall Amount”:
      For
      each class of Offered Certificates (other than the Class C and Class P
      Certificates) and any Distribution Date, the amount, if any, by which (a) the
      sum of (1) the Monthly Interest Distributable Amount for such Class for the
      immediately preceding Distribution Date and (2) the outstanding Unpaid Interest
      Shortfall Amount, if any, for such Class for such preceding Distribution Date
      exceeds (b) the aggregate amount distributed on such Class in respect of
      interest pursuant to clause (a) of this definition on such preceding
      Distribution Date, plus
      interest
      on the amount of interest due but not paid on the Certificates of such Class
      on
      such preceding Distribution Date, to the extent permitted by law, at the
      applicable Pass-Through Rate for such Class for the related Accrual
      Period.

     

    “Upper-Tier
      REMIC”:
      As
      described in the Preliminary Statement.

     

    “Value”:
      With
      respect to any Mortgage Loan and the related Mortgaged Property, the lesser
      of:

     

    
      
        
        

      

      
        53

        
          

        

      

      
        
        

      

    

     

    (i) the
      value
      of such Mortgaged Property as determined by an appraisal made for the originator
      of the Mortgage Loan at the time of origination of the Mortgage Loan by an
      appraiser who met the minimum requirements of Fannie Mae and Freddie Mac; and
      

     

    (ii) the
      purchase price paid for the related Mortgaged Property by the Mortgagor with
      the
      proceeds of the Mortgage Loan; 

     

    provided,
      however,
      that in
      the case of a Refinancing Mortgage Loan, such value of the Mortgaged Property
      is
      based solely upon the value determined by an appraisal made for the originator
      of such Refinancing Mortgage Loan at the time of origination by an appraiser
      who
      met the minimum requirements of Fannie Mae and Freddie Mac.

     

    “Voting
      Rights”:
      The
      portion of the voting rights of all of the Certificates which is allocated
      to
      any Certificate. 99% of the voting rights shall be allocated among the Classes
      of Regular Certificates, pro
      rata,
      based
      on a fraction, expressed as a percentage, the numerator of which is the Class
      Principal Balance of such Class and the denominator of which is the aggregate
      of
      the Class Principal Balances then outstanding and 1% of the voting rights shall
      be allocated to the Class R Certificate; provided,
      however,
      that
      when none of the Regular Certificates is outstanding, 100% of the voting rights
      shall be allocated to the Holder of the Class R Certificate. The voting rights
      allocated to a Class of Certificates shall be allocated among all Holders of
      such Class, pro
      rata,
      based
      on a fraction the numerator of which is the Certificate Principal Balance of
      each Certificate of such Class and the denominator of which is the Class
      Principal Balance of such Class; provided,
      further,
      however,
      that
      any Certificate registered in the name of the Master Servicer, the Securities
      Administrator or the Trustee or any of its affiliates shall not be included
      in
      the calculation of Voting Rights; and provided,
      further,
      however,
      that
      all Voting Rights in respect of the Insured Certificates shall be allocated
      to
      the Certificate Insurer. The Class C and Class P Certificates will have no
      voting rights.

     

    “Writedown
      Amount”:
      The
      reduction described in Section 5.03(c).

     

    “Yield
      Maintenance Account”:
      Not
      applicable.

     

    “Yield
      Maintenance Agreement”:
      Not
      applicable.

     

    “Yield
      Maintenance Allocation Agreement”:
      Not
      applicable.

     

    “Yield
      Maintenance Distributable Amount”:
      Not
      applicable.

     

    “Yield
      Maintenance Notional Balance”:
      Not
      applicable.

     

    “Yield
      Maintenance Payment Amount”:
      Not
      applicable.

     

    “Yield
      Maintenance Provider”:
      Not
      applicable.

     

    “Yield
      Maintenance Trust”:
      Not
      applicable.

     

    “Yield
      Maintenance Trust Account”:
      Not
      applicable.

     

    
      
        
        

      

      
        54

        
          

        

      

      
        
        

      

    

     

    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.

       

      (a)  The
        Depositor, concurrently with the execution and delivery hereof, does hereby
        transfer, assign, set over and otherwise convey to the Trustee without recourse
        for the benefit of the Certificateholders and the Certificate Insurer all
        the
        right, title and interest of the Depositor, including any security interest
        therein for the benefit of the Depositor, in and to (i) each Initial Mortgage
        Loan identified on the Mortgage Loan Schedule, including the related Cut-off
        Date Principal Balance, all interest due thereon after the Initial Cut-off
        Date
        and all collections in respect of interest and principal due after the Initial
        Cut-off Date; (ii) all the Depositor’s right, title and interest in and to the
        Distribution Account and all amounts from time to time credited to and to
        the
        proceeds of the Distribution Account; (iii) any real property that secured
        each
        such Initial Mortgage Loan and that has been acquired by foreclosure or deed
        in
        lieu of foreclosure; (iv) the Depositor’s interest in any insurance policies in
        respect of the Mortgage Loans; (v) all proceeds of any of the foregoing;
        (vi)
        any such amounts as may be deposited into and held by the Securities
        Administrator in the Prefunding Account and (vii) all other assets included
        or
        to be included in the Trust Fund. Such assignment includes all interest and
        principal due to the Depositor or the Master Servicer after the Initial Cut-off
        Date with respect to the Initial Mortgage Loans. In exchange for such transfer
        and assignment, the Depositor shall receive the Certificates.

       

      It
        is
        agreed and understood by the Depositor, the Seller and the Trustee that it
        is
        not intended that any Mortgage Loan be included in the Trust Fund that is
        a
“High-Cost Home Loan” as defined in the New Jersey Home Ownership Act, effective
        as of November 27, 2003, or The Home Loan Protection Act of New Mexico,
        effective as of January 1, 2004, or that is a “High Cost Home Mortgage Loan” as
        defined in the Massachusetts Predatory Home Loan Practices Act, effective
        as of
        November 7, 2004, or that is an “Indiana High Cost Home Mortgage Loan” as
        defined in the Indiana High Cost Home Loan Act, effective as of January 1,
        2005.

       

      Concurrently
        with the execution and delivery of this Agreement, the Depositor does hereby
        assign to the Trustee all of its rights and interest under the Mortgage Loan
        Purchase Agreement, including all rights of the Seller under the Servicing
        Agreement to the extent assigned in the Mortgage Loan Purchase Agreement.
        The
        Trustee hereby accepts such assignment, and shall be entitled to exercise
        all
        rights of the Depositor under the Mortgage Loan Purchase Agreement and all
        rights of the Seller under the Servicing Agreement as if, for such purpose,
        it
        were the Depositor or the Seller, as applicable, including the Seller’s right to
        enforce remedies for breaches of representations and warranties and delivery
        of
        the Mortgage Loans. The foregoing sale, transfer, assignment, set-over, deposit
        and conveyance does not and is not intended to result in creation or assumption
        by the Trustee of any obligation of the Depositor, the Seller or any other
        Person in connection with the Mortgage Loans or any other agreement or
        instrument relating thereto except as specifically set forth
        herein.

       

      
        
          
          

        

        
          55

          
            

          

        

        
          
          

        

      

       

      In
        connection with such transfer and assignment, the Seller, on behalf of the
        Depositor, does hereby deliver on the Closing Date, unless otherwise specified
        in this Section 2.01, to, and deposit with the Trustee, or the Custodian
        as its
        designated agent, the following documents or instruments with respect to
        each
        Mortgage Loan (a “Mortgage
        File”)
        so
        transferred and assigned:

       

      
        	
              	(i)	
                the
                  original Mortgage Note, endorsed either on its face or by allonge
                  attached
                  thereto in blank or in the following form: “Pay to the order of Deutsche
                  Bank National Trust Company, as Trustee for DSLA Mortgage Loan
                  Trust
                  Mortgage Loan Pass-Through Certificates, Series 2006-AR2, without
                  recourse”, or with respect to any lost Mortgage Note, an original Lost
                  Note Affidavit stating that the original mortgage note was lost,
                  misplaced
                  or destroyed, together with a copy of the related mortgage note;
                  provided,
                  however,
                  that such substitutions of Lost Note Affidavits for original Mortgage
                  Notes may occur only with respect to Mortgage Loans the aggregate
                  Cut-off
                  Date Principal Balance of which is less than or equal to 2% of
                  the Cut-off
                  Date Aggregate Principal Balance;

              

      

       

      
        	
              	(ii)	
                except
                  as provided below, for each Mortgage Loan that is not a MERS Mortgage
                  Loan, the original Mortgage, and in the case of each MERS Mortgage
                  Loan,
                  the original Mortgage, noting the presence of the MIN for that
                  Mortgage
                  Loan and either language indicating that the Mortgage Loan is a
                  MOM Loan
                  if the Mortgage Loan is a MOM Loan, or if such Mortgage Loan was
                  not a MOM
                  Loan at origination, the original Mortgage and the assignment to
                  MERS, in
                  each case with evidence of recording thereon, and the original
                  recorded
                  power of attorney, if the Mortgage was executed pursuant to a power
                  of
                  attorney, with evidence of recording thereon or, if such Mortgage
                  or power
                  of attorney has been submitted for recording but has not been returned
                  from the applicable public recording office, has been lost or is
                  not
                  otherwise available, a certified copy of such Mortgage or power
                  of
                  attorney, as the case may be, and that the original of such Mortgage
                  has
                  been forwarded to the public recording office, or, in the case
                  of a
                  Mortgage that has been lost, a copy thereof (certified as provided
                  for
                  under the laws of the appropriate jurisdiction) and a written Opinion
                  of
                  Counsel (delivered at the Seller’s expense) acceptable to the Trustee and
                  the Depositor that an original recorded Mortgage is not required
                  to
                  enforce the Trustee’s interest in the Mortgage
                  Loan;

              

      

       

      
        	
              	(iii)	
                the
                  original or copy of each assumption, modification or substitution
                  agreement, if any, relating to the Mortgage Loans, or, as to any
                  assumption, modification or substitution agreement which cannot
                  be
                  delivered on or prior to the Closing Date because of a delay caused
                  by the
                  public recording office where such assumption, modification or
                  substitution agreement has been delivered for recordation, a photocopy
                  of
                  such assumption, modification or substitution agreement, pending
                  delivery
                  of the original thereof, together with an Officer’s Certificate of the
                  Seller certifying that the copy of such assumption, modification
                  or
                  substitution agreement delivered to the Trustee (or its custodian)
                  on
                  behalf of the Trust Fund is a true copy and that the original of
                  such
                  agreement has been forwarded to the public recording
                  office;

              

      

       

      
        
          
          

        

        
          56

          
            

          

        

        
          
          

        

      

       

      
        	
              	(iv)	
                in
                  the case of each Mortgage Loan that is not a MERS Mortgage Loan,
                  an
                  original Assignment, in form and substance acceptable for recording.
                  The
                  Mortgage shall be assigned to “Deutsche Bank National Trust Company, as
                  Trustee for DSLA Mortgage Loan Trust Mortgage Loan Pass-Through
                  Certificates, Series 2006-AR2, without
                  recourse;”

              

      

       

      
        	
              	(v)	
                in
                  the case of each Mortgage Loan that is not a MERS Mortgage Loan,
                  an
                  original copy of any intervening assignment of mortgage showing
                  a complete
                  chain of assignments, or, in the case of an intervening Assignment
                  that
                  has been lost, a written Opinion of Counsel (delivered at the Seller’s
                  expense) acceptable to the Trustee and any NIMS Insurer that such
                  original
                  intervening Assignment is not required to enforce the Trustee’s interest
                  in the Mortgage Loans;

              

      

       

      
        	
              	(vi)	
                the
                  original Primary Insurance Policy, if any, or certificate, if
                  any;

              

      

       

      
        	
              	(vii)	
                the
                  original or a certified copy of lender’s title insurance policy;
                  and

              

      

       

      
        	
              	(viii)	
                with
                  respect to any Cooperative Loan, the Cooperative Loan
                  Documents.

              

      

       

      In
        connection with the assignment of any MERS Mortgage Loan, the Seller agrees
        that
        it will take (or shall cause the Servicer to take), at the expense of the
        Seller
        (with the cooperation of the Depositor, the Trustee and the Master Servicer),
        such actions as are necessary to cause the MERS®
        System
        to indicate that such Mortgage Loans have been assigned by the Seller to
        the
        Trustee in accordance with this Agreement (or any Subsequent Transfer Agreement)
        for the benefit of the Certificateholders by including (or deleting, in the
        case
        of Mortgage Loans that are repurchased in accordance with this Agreement)
        in
        such computer files the information required by the MERS®
        System
        to identify the series of the Certificates issued in connection with the
        transfer of such Mortgage Loans to the DSLA Mortgage Loan Trust 2006-AR2.
        Notwithstanding anything herein to the contrary, the Master Servicer and
        Securities Administrator are not responsible for monitoring any MERS Mortgage
        Loans.

       

      With
        respect to each Cooperative Loan, the Seller, on behalf of the Depositor,
        does
        hereby deliver to the Trustee (or Custodian) the related Cooperative Loan
        Documents and the Seller shall take (or cause the Servicer to take), at the
        expense of the Seller (with the cooperation of the Depositor, the Trustee
        and
        the Master Servicer) such actions as are necessary under applicable law
        (including but not limited to the relevant UCC) in order to perfect the interest
        of the Trustee in the related Mortgaged Property.

       

      Assignments
        of each Mortgage with respect to each Mortgage Loan that is not a MERS Mortgage
        Loan (other than a Cooperative Loan) shall be recorded; provided,
        however,
        that
        such assignments need not be recorded if, in the Opinion of Counsel (which
        must
        be from Independent Counsel and not at the expense of the Trust Fund or the
        Trustee) acceptable to the Trustee, each Rating Agency, recording in such
        states
        is not required to protect the Trust Fund’s interest in the related Mortgage
        Loans; provided,
        further,
        notwithstanding the delivery of any Opinion of Counsel, each assignment of
        Mortgage shall be submitted for recording by the Seller (or the Seller will
        cause the Servicer to submit each such assignment for recording), at the
        cost
        and expense of the Seller, in the manner described above, at no expense to
        the
        Trust Fund or Trustee, upon the earliest to occur of (1) reasonable direction
        by
        the Majority Certificateholders, (2) the occurrence of a bankruptcy or
        insolvency relating to the Seller or the Depositor, or (3) with respect to
        any
        one Assignment of Mortgage, the occurrence of a bankruptcy, insolvency or
        foreclosure relating to the Mortgagor under the related Mortgage. Subject
        to the
        preceding sentence, as soon as practicable after the Closing Date (but in
        no
        event more than three months thereafter except to the extent delays are caused
        by the applicable recording office), the Seller shall properly record (or
        the
        Seller will cause the Servicer to properly record), at the expense of the
        Seller
        (with the cooperation of the Depositor, the Trustee and the Master Servicer),
        in
        each public recording office where the related Mortgages are recorded, each
        assignment referred to in Section 2.01(v) above with respect to a Mortgage
        Loan
        that is not a MERS Mortgage Loan.

       

      
        
          
          

        

        
          57

          
            

          

        

        
          
          

        

      

       

      The
        Trustee agrees to execute and deliver to the Depositor on or prior to the
        Closing Date an acknowledgment of receipt of the original Mortgage Note (with
        any exceptions noted), substantially in the form attached as Exhibit G-1
        hereto.

       

      If
        the
        original lender’s title insurance policy, or a certified copy thereof, was not
        delivered pursuant to Section 2.01(vii) above, the Seller shall deliver or
        cause
        to be delivered to the Trustee the original or a copy of a written commitment
        or
        interim binder or preliminary report of title issued by the title insurance
        or
        escrow company, with the original or a certified copy thereof to be delivered
        to
        the Trustee, promptly upon receipt thereof, but in any case within 175 days
        of
        the Closing Date. The Seller shall deliver or cause to be delivered to the
        Trustee, promptly upon receipt thereof, any other documents constituting
        a part
        of a Mortgage File received with respect to any Mortgage Loan sold to the
        Depositor by the Seller, including, but not limited to, any original documents
        evidencing an assumption or modification of any Mortgage Loan.

       

      For
        (a)
        Initial Mortgage Loans (if any) that have been prepaid in full after the
        Initial
        Cut-off Date and prior to the Closing Date or (b) Subsequent Mortgage Loans
        (if
        any) that have been prepaid in full after the applicable Subsequent Cut-off
        Date
        and prior to the applicable Transfer Date, in lieu of the Seller in lieu
        of
        delivering the above documents, herewith delivers to any NIMS Insurer, the
        Certificate Insurer and the Trustee, or to the Custodian on behalf of the
        Trustee, an Officer’s Certificate which shall include a statement to the effect
        that all amounts received in connection with such prepayment that are required
        to be deposited in the Distribution Account have been so deposited. All original
        documents that are not delivered to the Trustee (or to the Custodian on behalf
        of the Trustee) on behalf of the Trust Fund shall be held by the Master Servicer
        or the Servicer in trust for the Trustee, for the benefit of the Trust Fund
        and
        the Certificateholders.

       

      The
        Depositor herewith delivers to the Trustee an executed copy of the Mortgage
        Loan
        Purchase Agreement.

       

      
        
          
          

        

        
          58

          
            

          

        

        
          
          

        

      

       

      (b)  The
        Depositor, concurrently with the execution and delivery hereof, does hereby
        transfer, assign, sets over and otherwise convey to the Trustee without recourse
        for the benefit of the Certificateholders all the right, title and interest
        of
        the Depositor, including any security interest therein for the benefit of
        the
        Depositor, in and to each Subsequent Mortgage Loan included on the Mortgage
        Loan
        Schedule, including the related Cut-off Date Principal Balance, all interest
        due
        thereon after the Subsequent Cut-off Date and all collections in respect
        of
        interest and principal due after the Subsequent Cut-off Date; (ii) all the
        Depositor’s right, title and interest in and to the Distribution Account and all
        amounts from time to time credited to and the proceeds of the Distribution
        Account; (iii) any real property that secured each such Subsequent Mortgage
        Loan
        and that has been acquired by foreclosure or deed in lieu of foreclosure;
        (iv)
        the Depositor’s interest in any insurance policies in respect of the Subsequent
        Mortgage Loans; (v) all proceeds of any of the foregoing; and (vi) all other
        assets included or to be included in the Trust Fund. Such assignment includes
        all interest and principal due to the Depositor after the Subsequent Cut-off
        Date with respect to the Subsequent Mortgage Loans.

       

      Upon
        one
        Business Day’s prior written notice to the Trustee, the Master Servicer, the
        Securities Administrator, the Servicer and the Rating Agencies, on any Business
        Day designated by the Depositor during the Prefunding Period, the Depositor,
        the
        Seller, the Trustee and the Servicer shall complete, execute and deliver
        a
        Subsequent Transfer Agreement so long as no Rating Agency has provided notice
        that the execution and delivery of such Subsequent Transfer Agreement will
        result in a reduction or withdrawal of the ratings assigned to the Certificates
        on the Closing Date (without regard to the Certificate Insurance
        Policy).

       

      The
        transfer of Subsequent Mortgage Loans and the other property and rights relating
        to them on a Subsequent Transfer Date is subject to the satisfaction of each
        of
        the following conditions:

       

      
        	
              	(i)	
                each
                  Subsequent Mortgage Loan conveyed on such Subsequent Transfer Date
                  satisfies the representations and warranties applicable to it under
                  this
                  Agreement and under the applicable Reconstitution Agreement as
                  of the
                  applicable Subsequent Transfer Date; provided,
                  however,
                  that with respect to a breach of a representation and warranty
                  with
                  respect to a Subsequent Mortgage Loan, the obligation under Section
                  2.03
                  of this Agreement of the Seller or Originator, as applicable, to
                  cure,
                  repurchase or replace such Subsequent Mortgage Loan shall constitute
                  the
                  sole remedy against the Seller or Originator, as applicable, respecting
                  such breach available to Certificateholders, the Depositor or the
                  Trustee;

              

      

       

      
        	
              	(ii)	
                the
                  Trustee, the Certificate Insurer and the Rating Agencies are provided
                  with
                  an Opinion of Counsel or Opinions of Counsel, at the expense of
                  the
                  Depositor, with respect to the qualification of each REMIC created
                  pursuant to this Agreement as a REMIC, to be delivered as provided
                  pursuant to this Section 2.01(b);

              

      

       

      
        	
              	(iii)	
                the
                  Rating Agencies, the Certificate Insurer and the Trustee are provided
                  with
                  an Opinion of Counsel or Opinions of Counsel, at the expense of
                  the
                  Depositor, with respect to the characterization of the transfer
                  of the
                  Subsequent Mortgage Loans conveyed on such Subsequent Transfer
                  Date as a
                  sale, to be delivered as provided pursuant to this Section
                  2.01(b);

              

      

       

      
        
          
          

        

        
          59

          
            

          

        

        
          
          

        

      

       

      
        	
              	(iv)	
                the
                  execution and delivery of such Subsequent Transfer Agreement or
                  conveyance
                  of the related Subsequent Mortgage Loans does not result in a reduction
                  or
                  withdrawal of any ratings assigned to the Certificates on the Closing
                  Date
                  by the Rating Agencies (without regard to the Certificate Insurance
                  Policy);

              

      

       

      
        	
              	(v)	
                each
                  Subsequent Mortgage Loan may not be 30 or more days contractually
                  delinquent as of its Subsequent Transfer
                  Date;

              

      

       

      
        	
              	(vi)	
                each
                  Subsequent Mortgage Loan may not have a final maturity date later
                  than
                  September 2046;

              

      

       

      
        	
              	(vii)	
                the
                  remaining term to stated maturity of each Subsequent Mortgage Loan
                  will
                  not exceed 40 years;

              

      

      
         

        
          
            	
                  	(viii)	
                    each Subsequent Mortgage Loan
                      will have an
                      LTV ratio not greater than
                      100.0%;

                  

          

        

         

        
          	
                	(ix)	
                  each
                    Subsequent Mortgage Loan will have a Stated Principal Balance
                    not greater
                    than $1,968,000;

                

        

      

       

      
        	
              	(x)	
                each
                  Subsequent Mortgage Loan will have a first payment date no later
                  than
                  [[•]]
                  2006;

              

      

       

      
        
          	
                	(xi)	
                  each
                    Subsequent Mortgage Loan will have a gross loan rate equal to,
                    or in
                    excess of, 1.250% per annum;

                

        

      

       

      
        	
              	(xii)	
                no
                  Subsequent Mortgage Loan will be subject to the Homeownership and
                  Equity
                  Protection Act of 1994 or any comparable state or local law;
                  

              

      

       

      
        
          	
                	(xiii)	
                  each
                    Subsequent Mortgage Loan will be a valid, existing and enforceable
                    first
                    lien on the Mortgaged
                    Property;

                

        

      

       

      
        
          	
                	(xiii)	
                  the
                    aggregate pool of Subsequent Mortgage Loans is acceptable to
                    the Rating
                    Agencies by a prior written
                    communication;

                

        

      

       

      
        
          	
                	(xiv)	
                  each
                    Subsequent Mortgage Loan will have been originated by Downey
                    in accordance
                    with the same underwriting guidelines used by Downey in the origination
                    of
                    the Initial Mortgage loans;

                

        

      

       

      
        
          	
                	(xv)	
                  following
                    the purchase of such Subsequent Mortgage Loans by the Trust,
                    the Mortgage
                    Loans, including the Subsequent Mortgage Loans, will have the
                    following
                    characteristics as of their respective Subsequent Cut-off
                    Dates:

                

        

      

       

      
        
          
          

        

        
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      with
        respect to Loan Group 1:

       

      
        	
              	(1)	
                a
                  weighted average loan rate of not less than 6.446% per
                  annum;

              

      

       

      
        	 	
                (2)

              	
                a
                  weighted average remaining term to stated maturity of no more than
                  411
                  months;

              

      

       

      
        	 	
                (3)

              	
                a
                  weighted average original LTV ratio of not more than
                  69.06%;

              

      

       

      
        	 	
                (4)

              	
                a
                  weighted average credit score of not less than
                  705;

              

      

       

      
        	 	
                (5)

              	
                no
                  more than [[•]]%
                  of the Group 1 Mortgage Loans, by Cut-off Date Collateral Balance,
                  will be
                  concentrated in one state; and

              

      

       

      
        	 	
                (6)

              	
                no
                  more than 11.23% of the Group 1 Mortgage Loans, by Cut-off Date
                  Collateral
                  Balance, will relate to non-owner occupied
                  properties.

              

      

       

      with
        respect to Loan Group 2:

       

      
        	
              	(1)	
                a
                  weighted average loan rate of not less than 6.315% per
                  annum;

              

      

       

      
        	 	
                (2)

              	
                a
                  weighted average remaining term to stated maturity of no more than
                  427
                  months;

              

      

       

      
        	 	
                (3)

              	
                a
                  weighted average original LTV ratio of not more than
                  75.96%;

              

      

       

      
        	 	
                (4)

              	
                a
                  weighted average credit score of not less than
                  711;

              

      

       

      
        	 	
                (5)

              	
                no
                  more than [[•]]%
                  of the Group 2 Mortgage Loans, by Cut-off Date Collateral Balance,
                  will be
                  concentrated in one state; and

              

      

       

      
        	 	
                (6)

              	
                no
                  more than 0.74% of the Group 2 Mortgage Loans, by Cut-off Date
                  Collateral
                  Balance, will relate to non-owner occupied
                  properties.

              

      

       

      
        
          	
                	(xv)	
                  neither
                    the Seller nor the Depositor shall be insolvent or shall be rendered
                    insolvent as a result of such
                    transfer;

                

        

      

       

      
        
          	
                	(xvi)	
                  no
                    Event of Default has occurred
                    hereunder;

                

        

      

       

      
        
          	
                	(xvii)	
                  the
                    Depositor shall have delivered to the Trustee an Officer’s Certificate
                    confirming the satisfaction of each of these conditions precedent;
                    and

                

        

      

       

      
        	
              	(xviii)	
                each
                  Mortgage Loan constitutes a “qualified mortgage” within the meaning of
                  Section 860G(a)(3) of the Code.

              

      

       

      Upon
        (1)
        delivery to the Trustee by the Depositor of the Opinions of Counsel referred
        to
        in this Section 2.01(b), (2) delivery to the Trustee by the Depositor of
        a
        revised Mortgage Loan Schedule reflecting the Subsequent Mortgage Loans conveyed
        on such Subsequent Transfer Date and the related Subsequent Mortgage Loans
        and
        (3) delivery to the Trustee by the Depositor of an Officer’s Certificate
        confirming the satisfaction of each of the conditions precedent set forth
        above
        in this Section 2.01(b), the Securities Administrator shall remit to the
        Depositor the Aggregate Subsequent Transfer Amount related to the Subsequent
        Mortgage Loans transferred by the Depositor on such Subsequent Transfer Date
        from funds in the Prefunding Account.

       

      
        
          
          

        

        
          61

          
            

          

        

        
          
          

        

      

       

      The
        Securities Administrator shall not be required to investigate or otherwise
        verify compliance with the conditions set forth in the preceding paragraph,
        except for its own receipt of documents specified above, and shall be entitled
        to rely on the required Officer’s Certificate.

       

      The
        Depositor shall have the right to receive any and all loan-level information
        regarding the characteristics and performance of the Mortgage Loans upon
        request, and to publish, disseminate or otherwise utilize such information
        in
        its discretion, subject to applicable laws and regulations.

       

      SECTION
        2.02.   Acceptance
        by Trustee.

       

      The
        Trustee hereby accepts its appointment as Custodian hereunder and acknowledges
        the receipt, subject to the provisions of Section 2.01 and subject to the
        review
        described below and any exceptions noted on the exception report described
        in
        the next paragraph below, of the documents referred to in Section 2.01 above
        and
        all other assets included in the definition of “Trust Fund” and declares that,
        in its capacity as Custodian, it holds and will hold such documents and the
        other documents delivered to it constituting a Mortgage File, and that it
        holds
        or will hold all such assets and such other assets included in the definition
        of
“Trust Fund” in trust for the exclusive use and benefit of all present and
        future Certificateholders.

       

      The
        Trustee further agrees, for the benefit of the Certificateholders, to review
        each Mortgage File delivered to it and to certify and deliver to the Depositor,
        the Seller, any NIMS Insurer and each Rating Agency an interim certification
        in
        substantially the form attached hereto as Exhibit G-2, within 90 days after
        the
        Closing Date (or, with respect to any document delivered after the Startup
        Day,
        within 45 days of receipt and with respect to any Qualified Substitute Mortgage,
        within five Business Days after the assignment thereof) that, 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 required to be reviewed by it pursuant to Section 2.01 of this
        Agreement are in its possession, (ii) such documents have been reviewed by
        it and have not been mutilated, damaged or torn and relate to such Mortgage
        Loan
        and (iii) based on its examination and only as to the foregoing, the
        information set forth in the Mortgage Loan Schedule that corresponds to items
        (i), (ii) and (xv) of the Mortgage Loan Schedule accurately reflects information
        set forth in the Mortgage File. It is herein acknowledged that, in conducting
        such review, the Trustee is under no duty or obligation to inspect, review
        or
        examine any such documents, instruments, certificates or other papers to
        determine that they 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.

       

      No
        later
        than 180 days after the Closing Date, the Trustee shall deliver to the
        Depositor, any NIMS Insurer, the Seller and each Rating Agency a final
        certification in the form annexed hereto as Exhibit G-3 evidencing the
        completeness of the Mortgage Files, with any applicable exceptions noted
        thereon.

       

      
        
          
          

        

        
          62

          
            

          

        

        
          
          

        

      

       

      If,
        in
        the process of reviewing the Mortgage Files and making or preparing, as the
        case
        may be, the certifications referred to above, the Trustee finds any document
        or
        documents constituting a part of a Mortgage File to be missing or not conforming
        to the requirements set forth herein, at the conclusion of its review the
        Trustee (or the Custodian as its designated agent) shall promptly notify
        the
        Seller and the Depositor. In addition, upon the discovery by the Seller or
        the
        Depositor (or upon receipt by the Trustee of written notification of such
        breach) of a breach of any of the representations and warranties made by
        the
        Seller in the Mortgage Loan Purchase Agreement in respect of any Mortgage
        Loan
        that materially adversely affects such Mortgage Loan or the interests of
        the
        related Certificateholders or the Certificate Insurer in such Mortgage Loan,
        the
        party discovering such breach shall give prompt written notice to the other
        parties to this Agreement.

       

      The
        Depositor and the Trustee intend that the assignment and transfer herein
        contemplated constitute a sale of the Mortgage Loans, the related Mortgage
        Notes
        and the related documents, conveying good title thereto free and clear of
        any
        liens and encumbrances, from the Depositor to the Trustee and that such property
        not be part of the Depositor’s estate or property of the Depositor in the event
        of any insolvency by the Depositor. In the event that such conveyance is
        deemed
        to be, or to be made as security for, a loan, the parties intend that the
        Depositor shall be deemed to have granted and does hereby grant to the Trustee
        a
        first priority perfected security interest in all of the Depositor’s right,
        title and interest in and to the Mortgage Loans, the related Mortgage Notes
        and
        the related documents, and that this Agreement shall constitute a security
        agreement under applicable law.

       

      The
        Trustee (or the Custodian, on behalf of the Trustee) shall execute and deliver
        to the Depositor on or prior to each Subsequent Transfer Date an acknowledgment
        of receipt of the original Mortgage Note (with any exceptions noted),
        substantially in the form attached as Exhibit G-1 hereto. 

       

      The
        Trustee (or the Custodian on behalf of the Trustee) shall, for the benefit
        of
        the Certificateholders, review each Mortgage File delivered to it for the
        Subsequent Mortgage Loans and to certify and deliver to the Depositor, the
        Seller and the Rating Agency an interim certification in substantially the
        form
        attached hereto as Exhibit G-2, within 45 days after each Subsequent Transfer
        Date that, as to each Subsequent Mortgage Loan listed in the Mortgage Loan
        Schedule (other than any Subsequent Mortgage Loan paid in full or any Subsequent
        Mortgage Loan specifically identified in the exception report annexed thereto
        as
        not being covered by such certification), (i) all documents required to be
        delivered to it pursuant to Section 2.01 of this Agreement are in its
        possession, (ii) such documents have been reviewed by it and have not been
        mutilated, damaged or torn and relate to such Subsequent Mortgage Loan and
        (iii) based on its examination and only as to the foregoing, the
        information set forth in the Mortgage Loan Schedule that corresponds to items
        (i), (ii) and (iii) of the Mortgage Loan Schedule accurately reflects
        information set forth in the Mortgage File. It is herein acknowledged that,
        in
        conducting such review, the Trustee and the Custodian on its behalf are under
        no
        duty or obligation to inspect, review or examine any such documents,
        instruments, certificates or other papers to determine that they 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.

       

      
        
          
          

        

        
          63

          
            

          

        

        
          
          

        

      

       

      No
        later
        than 90 days after each Subsequent Transfer Date, the Trustee or the Custodian
        on behalf of the Trustee shall deliver to the Depositor and the Seller a
        final
        certification in the form annexed hereto as Exhibit G-3 (or a substantially
        similar form) evidencing the completeness of the Mortgage Files, with any
        applicable exceptions noted thereon.

       

      If,
        in
        the course of such review of the Mortgage Files relating to the Subsequent
        Mortgage Loans, the Custodian finds any document constituting a part of a
        Mortgage File which does not meet the requirements of Section 2.01(b), the
        Trustee shall cause the Custodian to list such as an exception in the Final
        Certification; provided,
        however,
        that
        the Trustee shall not make any determination as to whether (i) any
        endorsement is sufficient to transfer all right, title and interest of the
        party
        so endorsing, as noteholder or assignee thereof, in and to that Mortgage
        Note or
        (ii) any assignment is in recordable form or is sufficient to effect the
        assignment of and transfer to the assignee thereof under the mortgage to
        which
        the assignment relates. The Seller or Originator, as applicable, shall cure
        any
        such defect or repurchase or substitute for any such Mortgage Loan in accordance
        with this Section 2.02.

       

      	 SECTION
              2.03.  	
              Repurchase
                or Substitution of Mortgage Loans by the Originator and the
                Seller.

            

       

      (a)  Upon
        its
        discovery or receipt of written notice of any materially defective document
        in,
        or that a document is missing from, a Mortgage File or of the breach by the
        Originator of any representation, warranty or covenant under the Purchase
        Agreement in respect of any Mortgage Loan which materially adversely affects
        the
        value of that Mortgage Loan or the interest therein of the Certificateholders
        or
        the Certificate Insurer, the Trustee shall promptly notify the Originator
        of
        such defect, missing document or breach and request that the Originator deliver
        such missing document or cure such defect or breach within 90 days from the
        date
        that the Seller was notified of such missing document, defect or breach,
        and if
        the Originator does not deliver such missing document or cure such defect
        or
        breach in all material respects during such period, the Trustee shall enforce
        the Originator’s obligation under the Purchase Agreement and cause the
        Originator to repurchase that Mortgage Loan from the Trust Fund at the
        Repurchase Price (as defined in the Purchase Agreement) on or prior to the
        Determination Date following the expiration of such 90 day period. It is
        understood and agreed that the obligation of the Originator to cure or to
        repurchase (or to substitute for) any Mortgage Loan as to which a document
        is
        missing, a material defect in a constituent document exists or as to which
        such
        a breach has occurred and is continuing shall constitute the sole remedy
        against
        the Originator respecting such omission, defect or breach available to the
        Trustee or any NIMS Insurer on behalf of the Certificateholders.

       

      (b)  Upon
        discovery or receipt of written notice that a document does not comply with
        the
        requirements of Section 2.01 hereof, or that a document is missing from,
        a
        Mortgage File or of the breach by the Seller of any representation, warranty
        or
        covenant under the Mortgage Loan Purchase Agreement or in Section 2.04 or
        Section 2.08 hereof in respect of any Mortgage Loan which materially adversely
        affects the value of that Mortgage Loan or the interest therein of the
        Certificateholders or the Certificate Insurer, the Trustee (or the Custodian
        as
        its designated agent) shall promptly notify the Seller of such noncompliance,
        missing document or breach and request that the Seller deliver such missing
        document or cure such noncompliance or breach within 90 days from the date
        that
        the Seller was notified of such missing document, noncompliance or breach,
        and
        if the Seller does not deliver such missing document or cure such noncompliance
        or breach in all material respects during such period, the Trustee shall
        enforce
        the Seller’s obligation under the Mortgage Loan Purchase Agreement and cause the
        Seller to repurchase that Mortgage Loan from the Trust Fund at the Purchase
        Price on or prior to the Determination Date following the expiration of such
        90
        day period (subject to Section 2.03(e) below); provided,
        however,
        that, in
        connection with any such breach that could not reasonably have been cured
        within
        such 90 day period, if the Seller shall have commenced to cure such breach
        within such 90 day period, the Seller shall be permitted to proceed thereafter
        diligently and expeditiously to cure the same within the additional period
        provided under the Mortgage Loan Purchase Agreement; and, provided
        further,
        that,
        in the case of the breach of any representation, warranty or covenant made
        by
        the Seller in Section 2.04 hereof, the Seller shall be obligated to cure
        such
        breach or purchase the affected Mortgage Loans for the Purchase Price or,
        if the
        Mortgage Loan or the related Mortgaged 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. 

       

      
        
          
          

        

        
          64

          
            

          

        

        
          
          

        

      

       

      (c)  The
        Purchase Price or Repurchase Price (as defined in the related Purchase
        Agreement) for a Mortgage Loan purchased or repurchased under this Section
        2.03
        or such other amount due shall be deposited in the Distribution Account on
        or
        prior to the next Determination Date after the Seller’s or the Originator’s
        obligation to repurchase such Mortgage Loan arises. The Trustee, upon receipt
        of
        written certification from the Seller or the Originator of the related deposit
        in the Distribution Account, shall release to the Seller or the Originator,
        as
        applicable, the related Mortgage File and shall execute and deliver such
        instruments of transfer or assignment, in each case without recourse, as
        the
        Seller or the Originator, as applicable, shall furnish to it and as shall
        be
        necessary to vest in the Seller or the Originator, as applicable, any Mortgage
        Loan released pursuant hereto and the Trustee shall have no further
        responsibility with regard to such Mortgage File (it being understood that
        the
        Trustee shall have no responsibility for determining the sufficiency of such
        assignment for its intended purpose). In lieu of repurchasing any such Mortgage
        Loan as provided above, the Seller may cause such Mortgage Loan to be removed
        from the Trust Fund (in which case it shall become a Deleted Mortgage Loan)
        and
        substitute one or more Qualified Substitute Mortgage Loans in the manner
        and
        subject to the limitations set forth in Section 2.03(d) below. It is understood
        and agreed that the obligation of the Seller to cure or to repurchase (or
        to
        substitute for) any Mortgage Loan as to which a document is missing, a material
        defect in a constituent document exists or as to which such a breach has
        occurred and is continuing shall constitute the sole remedy against the Seller
        respecting such omission, defect or breach available to the Trustee on behalf
        of
        the Certificateholders.

       

      The
        Trustee shall enforce the obligations of the Seller under the Mortgage Loan
        Purchase Agreement including, without limitation, any obligation of the Seller
        to purchase a Mortgage Loan on account of missing or defective documentation
        or
        on account of a breach of a representation, warranty or covenant as described
        in
        this Section 2.03(c).

       

      (d)  If
        pursuant to the provisions of Section 2.03(b), the Seller repurchases or
        otherwise removes from the Trust Fund a Mortgage Loan that is a MERS Mortgage
        Loan, the Seller shall take (or shall cause the applicable Servicer to take),
        at
        the expense of the Seller (with the cooperation of the Depositor, the Trustee
        and the Master Servicer), such actions as are necessary either (i) cause
        MERS to
        execute and deliver an Assignment of Mortgage in recordable form to transfer
        the
        Mortgage from MERS to the Seller and shall cause such Mortgage to be removed
        from registration on the MERS® System in accordance with MERS’ rules and
        regulations or (ii) cause MERS to designate on the MERS® System the Seller or
        its designee as the beneficial holder of such Mortgage Loan.

       

      
        
          
          

        

        
          65

          
            

          

        

        
          
          

        

      

       

      (e)  [Reserved].

       

      (f)  Any
        substitution of Qualified Substitute Mortgage Loans for Deleted Mortgage
        Loans
        made pursuant to Section 2.03(a) above must be effected prior to the last
        Business Day that is within two years after the Closing Date. As to any Deleted
        Mortgage Loan for which the Seller substitutes a Qualified Substitute Mortgage
        Loan or Loans, such substitution shall be effected by the Seller delivering
        to
        the Trustee, for such Qualified Substitute Mortgage Loan or Loans, the Mortgage
        Note, the Mortgage, the Assignment to the Trustee, and such other documents
        and
        agreements, with all necessary endorsements thereon, as are required by Section
        2.01 hereof, together with an Officers’ Certificate stating that each such
        Qualified Substitute Mortgage Loan satisfies the definition thereof and
        specifying the Substitution Adjustment (as described below), if any, in
        connection with such substitution; provided,
        however,
        that, in
        the case of any Qualified Substitute Mortgage Loan that is a MERS Mortgage
        Loan,
        the Seller shall provide such documents and take such other action with respect
        to such Qualified Substitute Mortgage Loans as are required pursuant to Section
        2.01 hereof. The Trustee, shall acknowledge receipt for such Qualified
        Substitute Mortgage Loan or Loans and, within five Business Days thereafter,
        shall review such documents as specified in Section 2.02 hereof and deliver
        to
        the related Servicer, with respect to such Qualified Substitute Mortgage
        Loan or
        Loans, a certification substantially in the form attached hereto as Exhibit
        G-2,
        with any exceptions noted thereon. Within 180 days of the date of substitution,
        the Trustee, shall deliver to the Seller and the Master Servicer a certification
        substantially in the form of Exhibit G-3 hereto with respect to such Qualified
        Substitute Mortgage Loan or Loans, with any exceptions noted thereon. Monthly
        Payments due with respect to Qualified Substitute Mortgage Loans in the month
        of
        substitution are not part of the Trust Fund and will be retained by the Seller.
        For the month of substitution, distributions to Certificateholders will reflect
        the collections and recoveries in respect of such Deleted Mortgage Loan in
        the
        Due Period preceding the month of substitution and the Depositor or the Seller,
        as the case may be, shall thereafter be entitled to retain all amounts
        subsequently received in respect of such Deleted Mortgage Loan. The Seller
        shall
        give or cause to be given written notice to the Certificateholders that such
        substitution has taken place, shall amend the Mortgage Loan Schedule to reflect
        the removal of such Deleted Mortgage Loan from the terms of this Agreement
        and
        the substitution of the Qualified Substitute Mortgage Loan or Loans and shall
        deliver a copy of such amended Mortgage Loan Schedule to the Trustee, the
        Master
        Servicer and the Securities Administrator. Upon such substitution, such
        Qualified Substitute Mortgage Loan or Loans shall constitute part of the
        Trust
        Fund and shall be subject in all respects to the terms of this Agreement
        and, in
        the case of a substitution effected by the Seller, the Mortgage Loan Purchase
        Agreement, including, in the case of a substitution effected by the Seller
        all
        representations and warranties thereof included in the Mortgage Loan Purchase
        Agreement and all representations and warranties thereof set forth in Section
        2.04 hereof, in each case as of the date of substitution.

       

      For
        any
        month in which the Seller substitutes one or more Qualified Substitute Mortgage
        Loans for one or more Deleted Mortgage Loans, the Seller shall determine,
        and
        provide written certification to the Trustee and the Seller as to, the amount
        (each, a “Substitution
        Adjustment”),
        if
        any, by which the aggregate Purchase Price of all such Deleted Mortgage Loans
        exceeds the aggregate, as to each such Qualified Substitute Mortgage Loan,
        of
        the principal balance thereof as of the date of substitution, together with
        one
        month’s interest on such principal balance at the applicable Net Loan Rate. On
        or prior to the next Determination Date after the Seller’s obligation to
        repurchase the related Deleted Mortgage Loan arises, the Seller will deliver
        or
        cause to be delivered to the Securities Administrator for deposit in the
        Distribution Account an amount equal to the related Substitution Adjustment,
        if
        any, and the Trustee, upon receipt of the related Qualified Substitute Mortgage
        Loan or Loans and a written certification from the Seller of its remittance
        of
        the deposit to the Distribution Account, shall release to the Seller the
        related
        Mortgage File or Files and shall execute and deliver such instruments of
        transfer or assignment, in each case without recourse, as the Seller shall
        deliver to it and as shall be necessary to vest therein any Deleted Mortgage
        Loan released pursuant hereto.

       

      
        
          
          

        

        
          66

          
            

          

        

        
          
          

        

      

       

      In
        addition, the Seller shall obtain at its own expense and deliver to the NIMS
        Insurer and the Trustee an Opinion of Counsel to the effect that such
        substitution (either specifically or as a class of transactions) will not
        cause
        an Adverse REMIC Event.
        If such
        Opinion of Counsel cannot be delivered, then such substitution may only be
        effected at such time as the required Opinion of Counsel can be
        given.

       

      (g)  Upon
        discovery by the Seller, the Master Servicer, the Depositor or the Trustee
        that
        any Mortgage Loan does not constitute a “qualified mortgage” within the meaning
        of Section 860G(a)(3) of the Code, the party discovering such fact shall
        within
        two Business Days give written notice thereof to the other parties. In
        connection therewith, the Seller shall repurchase or, subject to the limitations
        set forth in Section 2.03(d), substitute one or more Qualified Substitute
        Mortgage Loans for the affected Mortgage Loan within 90 days of the earlier
        of
        discovery or receipt of such notice with respect to such affected Mortgage
        Loan.
        Any such repurchase or substitution shall be made in the same manner as set
        forth in Section 2.03(b) above, if made by the Seller. The Trustee shall
        reconvey to the Seller the Mortgage Loan to be released pursuant hereto in
        the
        same manner, and on the same terms and conditions, as it would a Mortgage
        Loan
        repurchased for breach of a representation or warranty.

       

      (h)  Notwithstanding
        the foregoing, to the extent that any fact, condition or event with respect
        to a
        Mortgage Loan constitutes a breach of both (i) a representation or warranty
        of
        the Originator under the Purchase Agreement and (ii) a representation or
        warranty of the Seller under this Agreement, in each case, which materially
        adversely affects the value of such Mortgage Loan or the interest therein
        of the
        Certificateholders or the Certificate Insurer, the Trustee shall first request
        that the Originator cure such breach or repurchase such Mortgage Loan and
        if the
        Originator fails to cure such breach or repurchase such Mortgage Loan within
        60
        days of receipt of such request from the Trustee, the Trustee shall then
        request
        that the Seller cure such breach or repurchase such Mortgage Loans.

       

      
        
          
          

        

        
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      	SECTION
              2.04.  	
              Representations
                and Warranties of the Seller with Respect to the Mortgage
                Loans.

            

       

      The
        Seller hereby makes the following representations and warranties to the Trustee
        on behalf of the Certificateholders and the Certificate Insurer as of the
        Closing Date with respect to the Initial Mortgage Loans and as of the applicable
        Subsequent Transfer Date with respect to any Subsequent Mortgage
        Loan:

       

      (i)  Any
        and
        all requirements of any federal, state or local law including, without
        limitation, usury, truth in lending, real estate settlement procedures,
        predatory and abusive lending, consumer credit protection, equal credit
        opportunity, fair housing or disclosure laws applicable to the origination
        and
        servicing of mortgage loans of a type similar to the Mortgage Loans at
        origination have been complied with;

       

      (ii)  No
        Mortgage Loan is (a)(1) subject to the provisions of the Homeownership and
        Equity Protection Act of 1994 as amended (“HOEPA”) or (2) has an annual
        percentage rate (“APR”) or total points and fees that are equal to or exceeds
        the HOEPA thresholds (as defined in 12 CFR 226.32 (a)(1)(i) and (ii)), (b)
        a
“high cost” mortgage loan, “covered” mortgage loan, “high risk home” mortgage
        loan, or “predatory” mortgage loan or any other comparable term, no matter how
        defined under any federal, state or local law, (c) subject to any comparable
        federal, state or local statutes or regulations, or any other statute or
        regulation providing for assignee liability to holders of such mortgage loans,
        or (d) a High Cost Loan or Covered Loan, as applicable (as such terms are
        defined in the current Standard & Poor’s LEVELS® Glossary Revised, Appendix
        E); 

       

      (iii)  With
        respect to each representation and warranty with respect to any Mortgage
        Loan
        made by the related Originator in the related Purchase Agreement that is
        made as
        of the related Closing Date (as defined in the related Purchase Agreement),
        to
        the Seller’s knowledge, no event has occurred since the related Closing Date (as
        defined in the related Purchase Agreement) that would render such
        representations and warranties to be untrue in any material respect as of
        the
        Closing Date; 

       

      (iv)  [Reserved];

       

      (v)  No
        Mortgagor obtained a prepaid single premium credit insurance policy (e.g.,
        life,
        mortgage, disability, accident, unemployment or health insurance product)
        or
        debt cancellation agreement in connection with the origination of the Mortgage
        Loan. No proceeds from any Mortgage Loan were used to purchase single premium
        credit insurance policies or debt cancellation agreements as part of the
        origination of, or as a condition to closing, such Mortgage Loan;

       

      (vi)  The
        Mortgage Loan complies with all applicable consumer credit statutes and
        regulations, including, without limitation, the respective Uniform Consumer
        Credit Code laws in effect in Alabama, Colorado, Idaho, Indiana, Iowa, Kansas,
        Maine, Oklahoma, South Carolina, Utah, West Virginia and Wyoming, has been
        originated by a properly licensed entity, and in all other respects, complies
        with all of the material requirements of any such applicable laws;

       

      
        
          
          

        

        
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      (vii)  The
        Seller has fully and accurately furnished complete information (i.e., favorable
        and unfavorable) on the related borrower credit files to Equifax, Experian
        and
        Trans Union Credit Information Company, in accordance with the Fair Credit
        Reporting Act and its implementing regulations, on a monthly basis and, for
        each
        Mortgage Loan;

       

      (viii)  No
        Mortgage Loan is secured by real property or secured by a manufactured home
        located in the state of Georgia unless (x) such Mortgage Loan was originated
        prior to October 1, 2002 or after March 6, 2003, or (y) the property securing
        the Mortgage Loan is not, nor will be, occupied by the Mortgagor as the
        Mortgagor’s principal dwelling. No Mortgage Loan is a “High Cost Home Loan” as
        defined in the Georgia Fair Lending Act, as amended (the “Georgia Act”). Each
        Mortgage Loan that is a “Home Loan” under the Georgia Act complies with all
        applicable provisions of the Georgia Act. No Mortgage Loan secured by owner
        occupied real property or an owner occupied manufactured home located in
        the
        State of Georgia was originated (or modified) on or after October 1, 2002
        through and including March 6, 2003;

       

      (ix)  No
        Mortgage Loan is a “High-Cost” loan as defined under the New York Banking Law
        Section 6-1, effective as of April 1, 2003;

       

      (x)  No
        Mortgage Loan (a) is secured by property located in the State of New York;
        (b)
        had an unpaid principal balance at origination of $300,000 or less, and (c)
        has
        an application date on or after April 1, 2003, the terms of which Mortgage
        Loan
        equal or exceed either the APR or the points and fees threshold for “high-cost
        home loans”, as defined in Section 6-1 of the New York State Banking
        Law;

       

      (xi)  No
        Mortgage Loan is a “High Cost Home Loan” as defined in the Arkansas Home Loan
        Protection Act effective July 16, 2003 (Act 1340 or 2003);

       

      (xii)  No
        Mortgage Loan is a “High Cost Home Loan” as defined in the Kentucky high-cost
        loan statute effective June 24, 2003 (Ky. Rev. Stat.
        Section 360.100);

       

      (xiii)  No
        Mortgage Loan secured by property located in the State of Nevada is a “home
        loan” as defined in the Nevada Assembly Bill No. 284;

       

      (xiv)  No
        Mortgage Loan is a “manufactured housing loan” or “home improvement home loan”
pursuant to the New Jersey Home Ownership Act. No Mortgage Loan is a “High-Cost
        Home Loan” or a refinanced “Covered Home Loan,” in each case, as defined in the
        New Jersey Home Ownership Act effective November 27, 2003 (N.J.S.A. 46;10B-22
        et
        seq.);

       

      (xv)  No
        Mortgage Loan is a subsection 10 mortgage under the Oklahoma Home Ownership
        and
        Equity protection Act;

       

      (xvi)  No
        Mortgage Loan is a “High-Cost Home Loan” as defined in the New Mexico Home Loan
        Protection Act effective January 1, 2004 (N.M. Stat. Ann. §§ 58-21A-1 et
        seq.);

       

      (xvii)  No
        Mortgage Loan is a “High-Risk Home Loan” as defined in the Illinois High-Risk
        Home Loan Act effective January 1, 2004 (815 Ill. Comp. Stat. 137/1 et
        seq.);

       

      
        
          
          

        

        
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      (xviii)  No
        Mortgage Loan that is secured by property located within the State of Maine
        meets the definition of a (i) “high-rate, high-fee” mortgage loan under Article
        VIII, Title 9-A of the Maine Consumer Credit Code or (ii) “High-Cost Home Loan”
as defined under the Maine House Bill 383 L.D. 494, effective as of September
        13, 2003;

       

      (xix)  With
        respect to any Mortgage Loan for which a mortgage loan application was submitted
        by the Mortgagor after April 1, 2004, no such Mortgage Loan secured by Mortgaged
        Property in the State of Illinois which has a Loan Rate in excess of 8.0%
        per
        annum has lender-imposed fees (or other charges) in excess of 3.0% of the
        original principal balance of the Mortgage Loan;

       

      (xx)  No
        Mortgage Loan secured by Mortgaged Property in the state of Massachusetts
        is a
“High Cost Home Mortgage Loan” as defined in Part 40 and Part 32, 209 CMR 40.01
        et seq., effective March 22, 2001; and

       

      (xxi)  No
        Loan
        is a “High Cost Home Loan” as defined by the Indiana Home Loan Practices Act,
        effective January 1, 2005 (Ind. Code Ann. §§ 24-9-1 et seq.).

       

      With
        respect to the representations and warranties incorporated in this Section
        2.04
        that are made to the best of the Seller’s knowledge or as to which the Seller
        has no knowledge, if it is discovered by the Depositor, the Seller, the
        Certificate Insurer, the Master Servicer or the Trustee that the substance
        of
        such representation and warranty is inaccurate and such inaccuracy materially
        and adversely affects the value of the related Mortgage Loan or the interest
        therein of the Certificateholders or the Certificate Insurer then,
        notwithstanding the Seller’s lack of knowledge with respect to the substance of
        such representation and warranty being inaccurate at the time the representation
        or warranty was made, such inaccuracy shall be deemed a breach of the applicable
        representation or warranty.

       

      It
        is
        understood and agreed that the representations and warranties incorporated
        in
        this Section 2.04 shall survive delivery of the Mortgage Files to the Trustee
        and shall inure to the benefit of the Certificateholders and the Certificate
        Insurer notwithstanding any restrictive or qualified endorsement or assignment.
        Upon discovery by any of the Depositor, the Seller, the Certificate Insurer,
        the
        Master Servicer or the Trustee of a breach of any of the foregoing
        representations and warranties which materially and adversely affects the
        value
        of any Mortgage Loan or the interests therein of the Certificateholders or
        the
        Certificate Insurer, the party discovering such breach shall give prompt
        written
        notice to the other parties, and in no event later than two Business Days
        from
        the date of such discovery. It is understood and agreed that the obligations
        of
        the Seller set forth in Section 2.03(a) hereof to cure, substitute for or
        repurchase a related Mortgage Loan pursuant to the Mortgage Loan Purchase
        Agreement constitute the sole remedies available to the Certificateholders,
        any
        NIMS Insurer or to the Trustee on their behalf respecting a breach of the
        representations and warranties incorporated in this Section 2.04.

       

      
        
          
          

        

        
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      SECTION
        2.05.   [Reserved].

       

      SECTION
        2.06.   Representations
        and Warranties of the Depositor.

       

      The
        Depositor represents and warrants to the Trust Fund, any NIMS Insurer, the
        Certificate Insurer and the Trustee on behalf of the Certificateholders and
        the
        Certificate Insurer as follows:

       

      (i)  this
        agreement constitutes a legal, valid and binding obligation of the Depositor,
        enforceable against the Depositor in accordance with its terms, except as
        enforceability may be limited by applicable bankruptcy, insolvency,
        reorganization, moratorium or other similar laws now or hereafter in effect
        affecting the enforcement of creditors’ rights in general an except as such
        enforceability may be limited by general principles of equity (whether
        considered in a proceeding at law or in equity);

       

      (ii)  immediately
        prior to the sale and assignment by the Depositor to the Trustee on behalf
        of
        the Trust Fund of each Mortgage Loan, the Depositor had good and marketable
        title to each Mortgage Loan (insofar as such title was conveyed to it by
        the
        Seller) subject to no prior lien, claim, participation interest, mortgage,
        security interest, pledge, charge or other encumbrance or other interest
        of any
        nature;

       

      (iii)  as
        of the
        Closing Date, the Depositor has transferred all right, title and interest
        in the
        Mortgage Loans to the Trustee on behalf of the Trust Fund;

       

      (iv)  the
        Depositor has not transferred the Mortgage Loans to the Trustee on behalf
        of the
        Trust Fund with any intent to hinder, delay or defraud any of its creditors;
        

       

      (v)  the
        Depositor has been duly incorporated and is validly existing as a corporation
        in
        good standing under the laws of Delaware, with full corporate power and
        authority to own its assets and conduct its business as presently being
        conducted;

       

      (vi)  the
        Depositor is not in violation of its certificate of incorporation or by-laws
        or
        in default in the performance or observance of any material obligation,
        agreement, covenant or condition contained in any contract, indenture, mortgage,
        loan agreement, note, lease or other instrument to which the Depositor is
        a
        party or by which it or its properties may be bound, which default might
        result
        in any material adverse changes in the financial condition, earnings, affairs
        or
        business of the Depositor or which might materially and adversely affect
        the
        properties or assets, taken as a whole, of the Depositor;

       

      (vii)  the
        execution, delivery and performance of this Agreement by the Depositor, and
        the
        consummation of the transactions contemplated hereby, do not and will not
        result
        in a material breach or violation of any of the terms or provisions of, or,
        to
        the knowledge of the Depositor, constitute a default under, any indenture,
        mortgage, deed of trust, loan agreement or other agreement or instrument
        to
        which the Depositor is a party or by which the Depositor is bound or to which
        any of the property or assets of the Depositor is subject, nor will such
        actions
        result in any violation of the provisions of the certificate of incorporation
        or
        by-laws of the Depositor or, to the best of the Depositor’s knowledge without
        independent investigation, any statute or any order, rule or regulation of
        any
        court or governmental agency or body having jurisdiction over the Depositor
        or
        any of its properties or assets (except for such conflicts, breaches, violations
        and defaults as would not have a material adverse effect on the ability of
        the
        Depositor to perform its obligations under this Agreement);

       

      
        
          
          

        

        
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      (viii)  to
        the
        best of the Depositor’s knowledge without any independent investigation, no
        consent, approval, authorization, order, registration or qualification of
        or
        with any court or governmental agency or body of the United States or any
        other
        jurisdiction is required for the issuance of the Certificates, or the
        consummation by the Depositor of the other transactions contemplated by this
        Agreement, except such consents, approvals, authorizations, registrations
        or
        qualifications as (a) may be required under State securities or “blue sky” laws,
        (b) have been previously obtained or (c) the failure of which to obtain would
        not have a material adverse effect on the performance by the Depositor of
        its
        obligations under, or the validity or enforceability of, this Agreement;
        and

       

      (ix)  there
        are
        no actions, proceedings or investigations pending before or, to the Depositor’s
        knowledge, threatened by any court, administrative agency or other tribunal
        to
        which the Depositor is a party or of which any of its properties is the subject:
        (a) which if determined adversely to the Depositor would have a material
        adverse
        effect on the business, results of operations or financial condition of the
        Depositor; (b) asserting the invalidity of this Agreement or the Certificates;
        (c) seeking to prevent the issuance of the Certificates or the consummation
        by
        the Depositor of any of the transactions contemplated by this Agreement,
        as the
        case may be; or (d) which might materially and adversely affect the performance
        by the Depositor of its obligations under, or the validity or enforceability
        of,
        this Agreement.

       

      SECTION
        2.07.   Issuance
        of Certificates.

       

      The
        Trustee acknowledges the assignment to it of the Mortgage Loans and the delivery
        to it of the Mortgage Files, subject to the provisions of Sections 2.01 and
        2.02 hereof, together with the assignment to it of all other assets included
        in
        the Trust Fund, receipt of which is hereby acknowledged. Concurrently with
        such
        assignment and delivery and in exchange therefor, the Securities Administrator,
        pursuant to the written request of the Depositor executed by an officer of
        the
        Depositor, has caused to be executed, authenticated and delivered to or upon
        the
        order of the Depositor, the Certificates in authorized denominations. The
        interests evidenced by the Certificates constitute the entire beneficial
        ownership interest in the Trust Fund.

       

      SECTION
        2.08.   Representations
        and Warranties of the Seller.

       

      The
        Seller hereby represents and warrants to the Trustee on behalf of the
        Certificateholders and the Certificate Insurer that, as of the Closing Date
        or
        as of such date specifically provided herein:

       

      (i)  The
        Seller is duly organized, validly existing and in good standing and has the
        power and authority to own its assets and to transact the business in which
        it
        is currently engaged. The Seller is duly qualified to do business and is
        in good
        standing in each jurisdiction in which the character of the business transacted
        by it or properties owned or leased by it requires such qualification and
        in
        which the failure to so qualify would have a material adverse effect on (a)
        its
        business, properties, assets or condition (financial or other), (b) the
        performance of its obligations under this Agreement, or (c) the value or
        marketability of the Mortgage Loans.

       

      
        
          
          

        

        
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      (ii)  The
        Seller has the power and authority to make, execute, deliver and perform
        this
        Agreement and to consummate all of the transactions contemplated hereunder
        and
        has taken all necessary action to authorize the execution, delivery and
        performance of this Agreement which is part of its official records. When
        executed and delivered, this Agreement will constitute the Seller’s legal, valid
        and binding obligations enforceable in accordance with its terms, except
        as
        enforcement of such terms may be limited by (1) bankruptcy, insolvency,
        reorganization, receivership, moratorium or similar laws affecting the
        enforcement of creditors’ rights generally and the rights of creditors of
        federally insured financial institutions and by the availability of equitable
        remedies, (2) general equity principles (regardless of whether such enforcement
        is considered in a proceeding in equity or at law) or (3) public policy
        considerations underlying the securities laws, to the extent that such policy
        considerations limit the enforceability of the provisions of this Agreement
        which purport to provide indemnification from securities laws
        liabilities.

       

      (iii)  The
        Seller holds all necessary licenses, certificates and permits from all
        governmental authorities necessary for conducting its business as it is
        currently conducted. It is not required to obtain the consent of any other
        party
        or any consent, license, approval or authorization from, or registration
        or
        declaration with, any governmental authority, bureau or agency in connection
        with the execution, delivery, performance, validity or enforceability of
        this
        Agreement, except for such consents, licenses, approvals or authorizations,
        or
        registrations or declarations as shall have been obtained or filed, as the
        case
        may be, prior to the Closing Date.

       

      (iv)  The
        execution, delivery and performance of this Agreement by the Seller will
        not
        conflict with or result in a breach of, or constitute a default under, any
        provision of any existing law or regulation or any order or decree of any
        court
        applicable to the Seller or any of its properties or any provision of its
        articles of incorporation, charter or by-laws, or constitute a material breach
        of, or result in the creation or imposition of any lien, charge or encumbrance
        upon any of its properties pursuant to any mortgage, indenture, contract
        or
        other agreement to which it is a party or by which it may be bound.

       

      (v)  No
        certificate of an officer, written statement or written report delivered
        pursuant to the terms hereof of the Seller contains any untrue statement
        of a
        material fact or omits to state any material fact necessary to make the
        certificate, statement or report not misleading.

       

      (vi)  The
        transactions contemplated by this Agreement are in the ordinary course of
        the
        Seller’s business.

       

      (vii)  The
        Seller is not insolvent, nor will the Seller be made insolvent by the transfer
        of the Mortgage Loans to the Depositor, nor is the Seller aware of any pending
        insolvency of the Seller.

       

      
        
          
          

        

        
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      (viii)  The
        Seller is not in violation of, and the execution and delivery of this Agreement
        by the Seller and its performance and compliance with the terms of this
        Agreement will not constitute a violation with respect to, any order or decree
        of any court, or any order or regulation of any federal, state, municipal
        or
        governmental agency having jurisdiction, which violation would materially
        and
        adversely affect the Seller’s financial condition (financial or otherwise) or
        operations, or materially and adversely affect the performance of any of
        its
        duties hereunder.

       

      (ix)  There
        are
        no actions or proceedings against the Seller, or pending or, to its knowledge,
        threatened, before any court, administrative agency or other tribunal; nor,
        to
        the Seller’s knowledge, are there any investigations (i) that, if determined
        adversely, would prohibit the Seller from entering into this Agreement, (ii)
        seeking to prevent the consummation of any of the transactions contemplated
        by
        this Agreement or (iii) that, if determined adversely, would prohibit or
        materially and adversely affect the Seller’s ability to perform any of its
        respective obligations under, or the validity or enforceability of, this
        Agreement.

       

      (x)  The
        Seller did not transfer the Mortgage Loans to the Depositor with any intent
        to
        hinder, delay or defraud any of its creditors.

       

      (xi)  The
        Seller acquired title to the Mortgage Loans in good faith, without notice
        of any
        adverse claims.

       

      (xii)  The
        transfer, assignment and conveyance of the Mortgage Notes and the Mortgages
        by
        the Seller to the Depositor are not subject to the bulk transfer laws or
        any
        similar statutory provisions in effect in any applicable
        jurisdiction.

       

      SECTION
        2.09.   Covenants
        of the Seller. 

       

      The
        Seller hereby covenants that, except for the transfer hereunder, the Seller
        will
        not sell, pledge, assign or transfer to any other Person, or grant, create,
        incur, assume or suffer to exist any lien on any Mortgage Loan, or any interest
        therein; the Seller will notify the Trustee, as assignee of the Depositor,
        and
        the Master Servicer of the existence of any lien on any Mortgage Loan
        immediately upon discovery thereof, and the Seller will defend the right,
        title
        and interest of the Trustee, as assignee of the Depositor, in, to and under
        the
        Mortgage Loans, against all claims of third parties claiming through or under
        the Seller; provided,
        however,
        that
        nothing in this Section 2.09 shall prevent or be deemed to prohibit the Seller
        from suffering to exist upon any of the Mortgage Loans any liens for municipal
        or other local taxes and other governmental charges if such taxes or
        governmental charges shall not at the time be due and payable or if the Seller
        shall currently be contesting the validity thereof in good faith by appropriate
        proceedings and shall have set aside on its books adequate reserves with
        respect
        thereto.
        The
        Seller shall, within 30 days after the Closing Date, provide the Master
        Servicer, the Securities Administrator, the Trustee, the Servicer, the
        Certificate Insurer and the Depositor a complete list of each party to the
        DSLA
        Mortgage Loan Trust 2006-AR2 transaction.

       

      
        
          
          

        

        
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      ARTICLE
        III

       

      ADMINISTRATION
        AND MASTER SERVICING OF THE MORTGAGE LOANS;
        CREDIT RISK MANAGER

       

      SECTION
        3.01.   Master
        Servicer to Service and Administer the Mortgage Loans. 

       

      The
        Master Servicer shall supervise, monitor and oversee the obligation of the
        Servicer to service and administer the Mortgage Loans in accordance with
        the
        terms of the Servicing Agreement and shall have full power and authority
        to do
        any and all things which it may deem necessary or desirable in connection
        with
        such master servicing and administration. In performing its obligations
        hereunder, the Master Servicer shall act in a manner consistent with Accepted
        Master Servicing Practices. Furthermore, the Master Servicer shall oversee
        and
        consult with the Servicer as necessary from time-to-time to carry out the
        Master
        Servicer’s obligations hereunder, shall receive, review and evaluate all
        reports, information and other data provided to the Master Servicer by the
        Servicer and shall cause the Servicer to perform and observe the covenants,
        obligations and conditions to be performed or observed by the Servicer under
        the
        Servicing Agreement. Notwithstanding anything in this Agreement, the Servicing
        Agreement or the Credit Risk Management Agreement to the contrary, the Master
        Servicer shall have no duty or obligation to enforce the Credit Risk Management
        Agreement or to supervise, monitor or oversee the activities of the Servicer
        under the Credit Risk Management Agreement with respect to any action taken
        or
        not taken by the Servicer at the direction of the Seller or pursuant to a
        recommendation of the Credit Risk Manager. The Master Servicer shall
        independently and separately monitor the 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 Servicer’s and Master Servicer’s
        records, and provide such reconciled and corrected information to the Securities
        Administrator to enable it to prepare the statements specified in Section
        5.04
        and any other information and statements required of the Securities
        Administrator hereunder.

       

      The
        Trustee shall furnish the Servicer and the Master Servicer with any limited
        powers of attorney and other documents in form acceptable to the Trustee,
        necessary or appropriate to enable the Servicer and the Master Servicer to
        service and administer the related Mortgage Loans and REO Property, which
        limited powers of attorney shall provide that the Trustee will not be liable
        for
        the actions or omissions of the Servicer or Master Servicer in exercising
        such
        powers. 

       

      The
        Master Servicer shall not without the Trustee’s written consent (i) initiate any
        action, suit or proceeding solely under the Trustee’s name without indicating
        the Master Servicer’s representative capacity or (ii) take any action with the
        intent to cause, and which actually does cause, the Trustee to be registered
        to
        do business in any state. The Master Servicer shall indemnify the Trustee
        for
        any and all costs, liabilities and expenses incurred by the Trustee in
        connection with the negligent or willful misuse of such powers of attorney
        by
        the Master Servicer.

       

      The
        Trustee shall provide access to the records and documentation in possession
        of
        the Trustee (including in its capacity as Custodian hereunder) regarding
        the
        related Mortgage Loans and REO Property and the servicing thereof to the
        Certificateholders, the FDIC, and the supervisory agents and examiners of
        the
        FDIC, such access being afforded only upon reasonable prior written request
        and
        during normal business hours at the office of the Trustee; provided,
        however,
        that,
        unless otherwise required by law, the Trustee shall not be required to provide
        access to such records and documentation if the provision thereof would violate
        the legal right to privacy of any Mortgagor. The Trustee shall allow
        representatives of the above entities to photocopy any of the records and
        documentation and shall provide equipment for that purpose at a charge that
        covers the Trustee’s actual costs.

       

      
        
          
          

        

        
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      The
        Trustee, upon written request of the Servicer or the Master Servicer, as
        applicable, shall execute and deliver to the Servicer and the Master Servicer
        any court pleadings, requests for trustee’s sale or other documents necessary or
        desirable to (i) the foreclosure or trustee’s sale with respect to a Mortgaged
        Property; (ii) any legal action brought to obtain judgment against any Mortgagor
        on the Mortgage Note or Mortgage; (iii) obtain a deficiency judgment against
        the
        Mortgagor; or (iv) enforce any other rights or remedies provided by the Mortgage
        Note or Mortgage or otherwise available at law or equity.

       

      SECTION
        3.02.   REMIC-Related
        Covenants.

       

      For
        as
        long as each REMIC created hereunder shall exist, the Trustee and the Securities
        Administrator shall act in accordance herewith to treat each such REMIC as
        a
        REMIC, and the Trustee and the Securities Administrator shall comply with
        any
        directions of the Depositor, the Servicer or the Master Servicer to assure
        such
        continuing treatment. In particular, the Trustee, the Securities Administrator
        and the Master Servicer shall not (a) sell or knowingly 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
        or
        is otherwise permitted pursuant to this Agreement or the Servicing Agreement
        or
        the Trustee has received a REMIC Opinion prepared at the expense of the Trust
        Fund; and (b) other than with respect to a substitution pursuant to the Mortgage
        Loan Purchase Agreement or Section 2.03 or 2.04 of this Agreement or as
        otherwise provided in this Agreement or the Servicing Agreement, as applicable,
        accept any contribution to any REMIC after the Startup Day without receipt
        of a
        REMIC Opinion.

       

      SECTION
        3.03.   Monitoring
        of Servicer.

       

      (a)  The
        Master Servicer shall be responsible for reporting to the Trustee (on behalf
        of
        the Trust Fund) and the Depositor the compliance by the Servicer with its
        duties
        under the Servicing Agreement. In the review of the Servicer’s activities, the
        Master Servicer may rely upon an officer’s certificate of the Servicer with
        regard to the Servicer’s compliance with the terms of the Servicing Agreement.
        In the event that the Master Servicer, in its judgment, determines that the
        Servicer should be terminated in accordance with the Servicing Agreement,
        or
        that a notice should be sent pursuant to the 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, the Certificate
        Insurer and the Trustee thereof, and the Master Servicer shall issue such
        notice
        or take such other action as it deems appropriate with Section 3.03(b)
        below.

       

      
        
          
          

        

        
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      (b)  The
        Master Servicer, for the benefit of the Trust Fund, any NIMS Insurer, the
        Certificate Insurer and the Certificateholders, shall (acting as agent of
        the
        Trust Fund when enforcing the Trust Fund’s rights under the Servicing Agreement)
        (i) enforce the obligations of the Servicer under the Servicing Agreement,
        and
        (ii) in the event that the Servicer fails to perform its obligations in
        accordance with the 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 enter into a new Servicing Agreement
        with a successor Servicer selected by the Master Servicer which the Master
        Servicer shall cause the Trustee to acknowledge; provided,
        however,
        it is
        understood and acknowledged by the parties hereto that there will be a period
        of
        transition (not to exceed 90 days) before the actual servicing functions
        can be
        fully transferred to such successor Servicer. Such enforcement, including,
        without limitation, the legal prosecution of claims, termination of Servicing
        Agreements and the pursuit of other appropriate remedies, shall be in such
        form
        and carried out to such an extent and at such time as the Master Servicer,
        in
        its good faith business judgment, would require were it the owner of the
        related
        Mortgage Loans. The Master Servicer shall pay the costs of such enforcement
        at
        its own expense except as provided below, 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 from the Trust Fund.

       

      (c)  To
        the
        extent that the costs and expenses of the Master Servicer related to any
        termination of the Servicer, appointment of a successor Servicer or the transfer
        and assumption of servicing by the Master Servicer or a successor Servicer
        with
        respect to the Servicing Agreement (including, without limitation, (i) all
        reasonable legal costs and expenses and all due diligence costs and expenses
        associated with an evaluation of the potential termination of the Servicer
        as a
        result of an event of default by such Servicer and (ii) all reasonable 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 servicer to service the Mortgage Loans in accordance
        with
        the Servicing Agreement) are not fully and timely reimbursed by the terminated
        Servicer, the Master Servicer shall be entitled to reimbursement of such
        reasonable costs and expenses from the Distribution Account.

       

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

       

      (e)  If
        the
        Master Servicer acts as Servicer, it will not assume liability for the
        representations and warranties of the predecessor Servicer, if any, that
        it
        replaces or for any errors, acts or omissions of such predecessor Servicer
        occurring prior to the termination of such Servicer; provided,
        however,
        the
        Master Servicer shall not be relieved of its liability, if any, as Master
        Servicer under this Section 3.03(e).

       

      SECTION
        3.04.   Fidelity
        Bond.

       

      (a)  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.
        The
        Master Servicer shall provide the Trustee, the Certificate Insurer and any
        NIMS
        Insurer a copy of such policy and fidelity bond upon request.

       

      
        
          
          

        

        
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      (b)  The
        Master Servicer shall promptly report to the Trustee, the Certificate Insurer
        and any NIMS Insurer any material changes that may occur in the Master Servicer
        fidelity bond or the Master Servicer errors and omissions insurance policy
        and
        shall furnish to the Trustee and any NIMS Insurer, on request, certificates
        evidencing that such bond and insurance policy are in full force and effect.
        The
        Master Servicer shall promptly report to the Trustee, the Certificate Insurer
        and any NIMS Insurer all cases of embezzlement or fraud, if such events involve
        funds relating to the Mortgage Loans. The total losses relating to the Mortgage
        Loans, regardless of whether claims are filed with the applicable insurer
        or
        surety, shall be disclosed in such reports together with the amount of such
        losses covered by insurance. If a bond or insurance claim report relating
        to the
        Mortgage Loans is filed with any of such bonding companies or insurers, the
        Master Servicer shall promptly furnish a copy of such report to the Trustee,
        the
        Certificate Insurer and any NIMS Insurer. Any amounts relating to the Mortgage
        Loans collected by the Master Servicer under any such bond or policy shall
        be
        promptly remitted by the Master Servicer to the Securities Administrator
        for
        deposit into the Distribution Account. Any amounts relating to the Mortgage
        Loans collected by the applicable Servicer under any such bond or policy
        shall
        be remitted to the Master Servicer to the extent provided in the applicable
        Servicing Agreement

       

      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, the Trust Fund
        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,
        Liquidation Proceeds and Recoveries and (iv) to effectuate, in its own name,
        on
        behalf the Trust Fund, or in the name of the Trust Fund, 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
        Servicing Agreement, as applicable; provided,
        however,
        that
        the Master Servicer shall not (and, consistent with its responsibilities
        under
        Section 3.03, shall not permit the Servicer to) knowingly or intentionally
        take
        any action, or fail to take (or fail to cause to be taken) any action reasonably
        within its control and the scope of duties more specifically set forth herein,
        that, under the REMIC Provisions, if taken or not taken, as the case may
        be,
        would result in an Adverse REMIC Event 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 result in an Adverse REMIC Event.
        The Trustee shall furnish the Master Servicer, upon written request from
        a
        Servicing Officer, with any limited powers of attorney empowering the Master
        Servicer or the 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 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
        the Servicer). In instituting foreclosures or similar proceedings, the Master
        Servicer shall institute such proceedings either in its own name on behalf
        of
        the Trust Fund or in the name of the Trust Fund (or cause the Servicer, pursuant
        to the Servicing Agreement, to institute such proceedings either in the name
        of
        the Servicer on behalf of the Trust, or in the name of the Trust Fund), unless
        otherwise required by law or otherwise appropriate. 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
        Trust Fund or the Trustee on its behalf or that the Trust Fund or the Trustee,
        as applicable, 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, on behalf of the Trust Fund, in the appointment
        of
        a co-trustee pursuant to Section 8.10 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 on behalf of the Trust
        Fund.

       

      
        
          
          

        

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

       

      To
        the
        extent provided in the Servicing Agreement and to the extent Mortgage Loans
        contain enforceable due-on-sale clauses, the Master Servicer shall cause
        the
        Servicer to enforce such clauses in accordance with the Servicing Agreement.
        If
        applicable law prohibits the enforcement of a due-on-sale clause or such
        clause
        is otherwise not enforced in accordance with the Servicing Agreement, and,
        as a
        consequence, a Mortgage Loan is assumed, the original Mortgagor may be released
        from liability in accordance with the 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
        the Servicer of a notification that payment in full has been escrowed in
        a
        manner customary for such purposes for payment to Certificateholders on the
        next
        Distribution Date, the Servicer will, if required under the Servicing Agreement,
        promptly furnish to the Custodian, on behalf of the Trustee, two copies of
        a
        certification substantially in the form of Exhibit F 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
        Servicing Account maintained by the Servicer pursuant to Section 4.01 or
        by the
        Servicer pursuant to the Servicing Agreement have been or will be so deposited)
        and shall request that the Trustee (or the Custodian, on behalf of the Trustee)
        deliver to the Servicer the related Mortgage File. Upon receipt of such
        certification and request, the Trustee (or the Custodian, on behalf of the
        Trustee), shall promptly release the related Mortgage File to the Servicer
        and
        the Trustee (and the Custodian, if applicable) shall have no further
        responsibility with regard to such Mortgage File. Upon any such payment in
        full,
        the Servicer is authorized, to give, as agent for the Trustee, as the mortgagee
        under the Mortgage that secured the Mortgage Loan, an instrument of satisfaction
        (or assignment of mortgage without recourse) regarding the Mortgaged Property
        subject to the Mortgage, which instrument of satisfaction or assignment,
        as the
        case may be, shall be delivered to the Person or Persons entitled thereto
        against receipt therefor of such payment, it being understood and agreed
        that no
        expenses incurred in connection with such instrument of satisfaction or
        assignment, as the case may be, shall be chargeable to the Servicing
        Account.

       

      
        
          
          

        

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

       

      	SECTION
              3.08.  	
              Documents,
                Records and Funds in Possession of Master Servicer to be Held for
                Trust
                Fund.

            

       

      (a)  The
        Master Servicer shall transmit and the Servicer (to the extent required by
        the
        Servicing Agreement) shall transmit to the Trustee (or Custodian) such documents
        and instruments coming into the possession of the Master Servicer or the
        Servicer from time to time as are required by the terms hereof, or in the
        case
        of the Servicer, the Servicing Agreement, to be delivered to the Trustee
        (or
        Custodian). Any funds received by the Master Servicer or by the Servicer
        in
        respect of any Mortgage Loan or which otherwise are collected by the Master
        Servicer or by the Servicer as Liquidation Proceeds, Insurance Proceeds or
        Recoveries in respect of any Mortgage Loan shall be held for the benefit
        of the
        Trust Fund and the Certificateholders subject to the Master Servicer’s right to
        retain or withdraw from the Distribution Account the Master Servicing Fee,
        any
        additional compensation pursuant to Section 3.14 and any other amounts provided
        in this Agreement, and to the right of the Servicer to retain its Servicing
        Fee
        and any other amounts as provided in the Servicing Agreement. The Master
        Servicer shall, and (to the extent provided in the Servicing Agreement) shall
        cause the Servicer to, provide access to information and documentation regarding
        the Mortgage Loans to the Trustee, any NIMS Insurer, the Certificate Insurer,
        their respective 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.

       

      
        
          
          

        

        
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    (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, Insurance
      Proceeds or Recoveries, shall be held by the Master Servicer for and on behalf
      of the Trust Fund and the Certificateholders and shall be and remain the sole
      and exclusive property of the Trust Fund; provided,
      however,
      that
      the Master Servicer and the 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 the Servicer under this Agreement or the Servicing
      Agreement.

     

    SECTION
      3.09. Standard Hazard Insurance and Flood Insurance
      Policies.

     

    (a) For
      each
      Mortgage Loan (other than a Cooperative Loan), the Master Servicer shall enforce
      any obligation of the Servicer under the Servicing Agreements to maintain or
      cause to be maintained standard fire and casualty insurance and, where
      applicable, flood insurance, all in accordance with the provisions of the
      Servicing Agreement. It is understood and agreed that such insurance shall
      be
      with insurers meeting the eligibility requirements set forth in the 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 Servicer 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 Servicing Agreement) shall
      be
      deposited into the Distribution Account, subject to withdrawal pursuant to
      Sections 4.02 and 4.03. Any cost incurred by the Master Servicer or the 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 the 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 Servicing Agreement) cause
      the Servicer to, prepare and present on behalf of the Trustee, the Trust Fund
      and the Certificateholders all claims under the insurance policies and take
      such
      actions (including the negotiation, settlement, compromise or enforcement of
      the
      insured’s claim) as shall be necessary to realize recovery under such policies.
      Any proceeds disbursed to the Master Servicer (or disbursed to the Servicer
      and
      remitted to the Master Servicer) in respect of such policies, bonds or contracts
      shall be promptly deposited in the Distribution Account upon receipt, except
      that any amounts realized that are to be applied to the repair or restoration
      of
      the related Mortgaged Property as a condition precedent to the presentation
      of
      claims on the related Mortgage Loan to the insurer under any applicable
      Insurance Policy need not be so deposited (or remitted).

     

    
      
        
        

      

      
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    SECTION
      3.11. Maintenance of the Primary Insurance Policies.

     

    (a) The
      Master Servicer shall not take, or authorize the Servicer (to the extent such
      action is prohibited under the Servicing Agreement) to take, any action that
      would result in noncoverage under any applicable Primary Insurance Policy of
      any
      loss which, but for the actions of the Master Servicer or Servicer, would have
      been covered thereunder. The Master Servicer shall use its best reasonable
      efforts to cause the Servicer (to the extent required under the 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 (including any lender-paid Primary Insurance
      Policy) in accordance with the provisions of this Agreement and the Servicing
      Agreement, as applicable. The Master Servicer shall not, and shall not permit
      the Servicer (to the extent required under the Servicing Agreement) to, cancel
      or refuse to renew any such Primary Insurance Policy that is in effect at the
      date of the initial issuance of the Mortgage Note and is required to be kept
      in
      force hereunder except in accordance with the provisions of this Agreement
      and
      the Servicing Agreement, as applicable.

     

    (b) The
      Master Servicer agrees to cause the Servicer (to the extent required under
      the
      Servicing Agreement) to present, on behalf of the Trustee, the Trust Fund and
      the Certificateholders, claims to the insurer under any Primary Insurance
      Policies and, in this regard, to take such reasonable action as shall be
      necessary to permit recovery under any Primary Insurance Policies respecting
      defaulted Mortgage Loans. Pursuant to Sections 4.01 and 4.02, any amounts
      collected by the Servicer under any Primary Insurance Policies shall be remitted
      to the Securities Administrator for deposit in the Distribution Account, subject
      to withdrawal pursuant to Section 4.03.

     

     

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

     

    The
      Trustee (or the Custodian, as directed by the Trustee), shall retain possession
      and custody of the originals (to the extent available) of any Primary Insurance
      Policies, or certificate of insurance if applicable and available, and any
      certificates of renewal as to the foregoing as may be issued from time to time
      as contemplated by this Agreement and which come into its possession. Until
      all
      amounts distributable in respect of the Certificates have been distributed
      in
      full and the Master Servicer otherwise has fulfilled its obligations under
      this
      Agreement, the Trustee (or its Custodian, if any, as directed by the Trustee)
      shall also retain possession and custody of each Mortgage File in accordance
      with and subject to the terms and conditions of this Agreement. The Master
      Servicer shall promptly deliver or cause to be delivered to the Trustee (or
      the
      Custodian, as directed by the Trustee), upon the execution or receipt thereof
      the originals of any Primary 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.

     

    
      
        
        

      

      
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    SECTION
      3.13. Realization Upon Defaulted Mortgage Loans.

     

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

     

    SECTION
      3.14. Additional Compensation to the Master Servicer. 

     

    The
      Master Servicer shall be entitled to receive the Master Servicing Fee and,
      pursuant to Section 4.02(c), certain income and gain realized from any
      investment of funds in the Distribution Account shall be for the benefit of
      the
      Master Servicer as additional compensation. Servicing compensation in the form
      of assumption fees, if any, late payment charges, as collected, if any, or
      otherwise (but, unless otherwise specifically permitted in the Servicing
      Agreement, not including any Prepayment Penalty Amounts) shall be retained
      by
      the Servicer, or the Master Servicer, and shall not be deposited in the
      Servicing Account or the Distribution 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. The amount of
      the
      aggregate compensation payable as set forth in this Section 3.14 plus the Master
      Servicing Fee due to the Master Servicer in respect of any Distribution Date
      shall be reduced in accordance with Section 5.06.

     

    SECTION
      3.15. REO Property.

     

    (a) In
      the
      event the Trust Fund (or the Trustee on its behalf) acquires ownership of any
      REO Property in respect of any related Mortgage Loan, the deed or certificate
      of
      sale shall be issued to the Trust Fund, or if required under applicable law,
      to
      the Trustee, or to its nominee, on behalf of the Trust Fund. The Master Servicer
      shall, to the extent provided in the Servicing Agreement, cause the Servicer
      to
      sell, any REO Property as expeditiously as possible (and in no event later
      than
      three years after acquisition) and in accordance with the provisions of this
      Agreement and the Servicing Agreement, as applicable. Pursuant to its efforts
      to
      sell such REO Property, the Master Servicer shall cause the Servicer to protect
      and conserve such REO Property in the manner and to the extent required by
      the
      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 Servicing Agreement, cause
      the Servicer to deposit all funds collected and received in connection with
      the
      operation of any REO Property in the Servicing Account.

     

    
      
        
        

      

      
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    (c) The
      Master Servicer and the Servicer, upon the final disposition of any REO
      Property, shall be entitled to reimbursement for any related unreimbursed
      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 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 Servicing Agreement, the Liquidation Proceeds from the
      final disposition of the REO Property, net of any payment to the Master Servicer
      and the Servicer as provided above shall be deposited in the Servicing Account
      on or prior to the applicable 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 Distribution Account on the next succeeding
      Servicer Remittance Date.

     

    SECTION
      3.16. Assessments of Compliance and Attestation Reports.

     

    (a) Assessments
      of Compliance.

     

    (i) By
      March
      10 (with a 5 calendar day cure period) of each year, commencing in March 2007,
      the Master Servicer, the Securities Administrator and the Trustee, in its
      capacity as Custodian (to the extent it is also acting as custodian), each
      at
      its own expense, shall furnish, and each such party shall cause any Servicing
      Function Participant engaged by it to furnish or otherwise make available,
      each
      at its own expense, to the Securities Administrator and the Depositor (provided
      that the Master Servicer shall furnish copies of each such report received
      by it
      from the Servicer to 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 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 3.19(b) and
      for each fiscal year thereafter, whether or not a Form 10-K is required to
      be
      filed, 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.
      

    

    (ii) No
      later
      than the end of each fiscal year for the Trust Fund for which a 10-K is required
      to be filed, the Master Servicer and the Trustee, in its capacity as Custodian,
      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 Securities Administrator are
      the same Person). When the Master Servicer, the Trustee, in its capacity as
      Custodian, and the Securities Administrator (or any Servicing Function
      Participant engaged by them) submit their assessments to the Securities
      Administrator, such parties will also at such time include the assessment (and
      attestation pursuant to subsection (b) of this Section 3.16) of each Servicing
      Function Participant engaged by it.

     

    
      
        
        

      

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

    

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

    

    (v) In
      the
      event the Master Servicer, the Securities Administrator, the Trustee, in its
      capacity as Custodian, or any Servicing Function Participant engaged by such
      party is terminated, assigns its rights and obligations under or resigns
      pursuant to the terms of this Agreement, or any other applicable agreement,
      as
      the case may be, such party shall provide a report on assessment of compliance
      pursuant to this Section 3.16(a) or to such other applicable agreement,
      notwithstanding any such termination, assignment or resignation.

    

    (b) Attestation
      Reports.

     

    (i) By
      March
      10 (with a 5 calendar day cure period) of each year, commencing in March 2007,
      the Master Servicer, the Securities Administrator, the Trustee, in its capacity
      as Custodian, each at its own expense, shall cause, and each such party shall
      cause any Servicing Function Participant engaged by it to cause, each at its
      own
      expense, a registered public accounting firm (which may also render other
      services to the Master Servicer, the Trustee, in its capacity as Custodian,
      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 a report to the Securities Administrator and the
      Depositor, to the effect that (i) it has obtained a representation regarding
      certain matters from the management of such party, which includes an assertion
      that such party has complied with the Relevant Servicing Criteria, and (ii)
      on
      the basis of an examination conducted by such firm in accordance with standards
      for attestation engagements issued or adopted by the PCAOB, it is expressing
      an
      opinion as to whether such party’s compliance with the Relevant Servicing
      Criteria was fairly stated in all material respects, or it cannot express an
      overall opinion regarding such party’s assessment of compliance with the
      Relevant Servicing Criteria. In the event that an overall opinion cannot be
      expressed, such registered public accounting firm shall state in such report
      why
      it was unable to express such an opinion. Such report must be available for
      general use and not contain restricted use language. 

     

    
      
        
        

      

      
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    (ii) Promptly
      after receipt of each such assessment of compliance and attestation report
      the
      Securities Administrator shall confirm that each assessment submitted pursuant
      to subsection (a) of this Section 3.16 is coupled with an attestation meeting
      the requirements of this Section and notify the Depositor of any
      exceptions.

    

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

    

    (iv) In
      the
      event the Master Servicer, the Securities Administrator, the Trustee, in its
      capacity as Custodian, the Servicer or any Servicing Function Participant
      engaged by 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 subservicing agreement, as the case may be,
      such party shall cause a registered public accounting firm to provide an
      attestation pursuant to this Section 3.16(b) notwithstanding any such
      termination, assignment or resignation.

    

    (v) The
      Trustee’s and the Custodian’s obligation to provide assessments of compliance
      and attestations under this Section 3.16 shall terminate upon the filing of
      a
      Form 15 suspension notice on behalf of the Trust Fund. Notwithstanding the
      foregoing, after the occurrence of such event, and provided that the Depositor
      is not otherwise provided with such reports or copies of such reports, the
      Master Servicer and the Securities Administrator shall be obligated to provide
      a
      copy of such reports, by March 31 of each year, to the
      Depositor.

     

    SECTION
      3.17. Annual Compliance Statement.

     

    The
      Master Servicer and the Securities Administrator shall deliver (and 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 10 (with a 5 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.

     

    
      
        
        

      

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

     

    In
      the
      event the Master Servicer, the Securities Administrator or any Servicing
      Function Participant engaged by parties is terminated or resigns pursuant to
      the
      terms of this Agreement, or any applicable agreement in the case of a Servicing
      Function Participant, as the case may be, such party shall provide an Officer’s
      Certificate pursuant to this Section 3.17 with respect to the period of time
      it
      was subject to this Agreement or any other applicable agreement, as the case
      may
      be.

     

    SECTION
      3.18. Sarbanes-Oxley Certification.

     

    Each
      Form
      10-K shall include a Sarbanes-Oxley Certification, required to be included
      therewith pursuant to the Sarbanes-Oxley Act. The Securities Administrator
      and
      the Master Servicer shall provide, and each such party shall cause any Servicing
      Function Participant engaged by it to provide, to the Person who signs the
      Sarbanes-Oxley Certification (the “Certifying
      Person”),
      by
      March 10 (with a 5 calendar day cure period) of each year in which the Trust
      Fund is subject to the reporting requirements of the Exchange Act and otherwise
      within a reasonable period of time upon request, a certification (each, a
“Back-Up
      Certification”)
      upon
      which the Certifying Person, the entity for which the Certifying Person acts
      as
      an officer, and such entity’s officers, directors and Affiliates (collectively
      with the Certifying Person, “Certification
      Parties”)
      can
      reasonably rely. A 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 any Servicing Function Participant engaged by such
      party
      is terminated or resigns pursuant to the terms of this Agreement, or any
      applicable subservicing agreement, as the case may be, such party shall provide
      a Back-Up Certification to the Certifying Person pursuant to this Section 3.18
      with respect to the period of time it was subject to this Agreement or any
      applicable subservicing 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 the Servicing
      Agreement.

     

    SECTION
      3.19. Reports Filed with Securities and Exchange Commission.

     

    (a) Reports
      Filed on Form 10-D.

     

    (i) Within
      15
      days after each Distribution Date (subject to permitted extensions under the
      Exchange Act), the Securities Administrator shall prepare and file on behalf
      of
      the Trust Fund any Form 10-D required by the Exchange Act, in form and substance
      as required by the Exchange Act. The Securities Administrator shall file each
      Form 10-D with a copy of the related Distribution Date Statement attached
      thereto. Any disclosure in addition to the Distribution Date 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 O to the Securities
      Administrator and Depositor 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.

     

    
      
        
        

      

      
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    (ii) As
      set
      forth on Exhibit R hereto, within 5 calendar days after the related Distribution
      Date, (i) the parties to the DSLA Mortgage Loan Trust 2006-AR2 transaction
      shall
      be required to provide to the Securities Administrator, the Depositor and McKee
      Nelson LLP, to the extent known by a responsible officer thereof, in
      EDGAR-compatible form (which may be Word or Excel documents easily convertible
      to EDGAR format), or in such other form as otherwise agreed upon by the
      Securities Administrator and such party, the form and substance of any
      Additional Form 10-D Disclosure, if applicable, together with an Additional
      Disclosure Notification in the form of Exhibit U hereto (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 Seller will be responsible for any
      reasonable fees and expenses assessed or incurred by the Securities
      Administrator in connection with including any Additional Form 10-D Disclosure
      in Form 10-D pursuant to this paragraph.

     

    (iii) After
      preparing the Form 10-D, the Securities Administrator shall, no later than
      10
      calendar days after the Distribution Date, forward electronically a copy of
      the
      Form 10-D to the Depositor and McKee Nelson LLP. Within two Business Days after
      receipt of such copy, but no later than the 12th
      calendar
      day after the Distribution Date (or the next succeeding Business Day), the
      Depositor shall notify the Securities Administrator in writing of any changes
      to
      or approval of such Form 10-D. In the absence of receipt of any written changes
      or approval, the Securities Administrator shall be entitled to assume that
      such
      Form 10-D is in final form and the Securities Administrator may proceed with
      the
      execution and filing of 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 subsection (d)(ii) of
      this
      Section 3.19. Promptly (but no later than 1 Business Day) after filing with
      the
      Commission, the Securities Administrator will make available on its internet
      website a final executed copy of each Form 10-D filed by the Securities
      Administrator. Each party to this Agreement acknowledges that the performance
      by
      the Master Servicer and the Securities Administrator of their respective duties
      under this Section 3.19(a) related to the timely preparation, execution and
      filing of Form 10-D is contingent upon such parties strictly observing all
      applicable deadlines in the performance of their duties under this Section
      3.19(a). Neither the Master Servicer nor the Securities Administrator shall
      have
      any liability for any loss, expense, damage, claim arising out of or with
      respect to any failure to properly prepare, execute and/or timely file such
      Form
      10-D, where such failure results from the Securities Administrator’s inability
      or failure to receive, on a timely basis, any information from any other party
      hereto needed to prepare, arrange for execution or file such Form 10-D, not
      resulting from its own negligence, bad faith or willful misconduct.

     

    
      
        
        

      

      
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    (iv) 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 represents to
      the Securities Administrator that the Depositor has filed all such required
      reports during the preceding 12 months and that it has been subject to such
      filing requirement for the past 90 days. The Depositor shall notify the
      Securities Administrator in writing, no later than the fifth calendar day after
      the related Distribution Date with respect to the filing of a report on Form
      10-D if the answer to the questions should be “no.” The Securities Administrator
      shall be entitled to rely on such representations in preparing, executing and/or
      filing any such report.

     

    (b) Reports
      Filed on Form 10-K.

     

    (i) On
      or
      prior to the 90th day after the end of each fiscal year of the Trust Fund in
      which a Form 10-K is required to be filed or such earlier date as may be
      required by the Exchange Act (the “10-K
      Filing Deadline”)
      (it
      being understood that the fiscal year for the Trust Fund ends on December
      31st
      of each
      year), commencing in March 2007, the Securities Administrator shall prepare
      and
      file on behalf of the Trust Fund a Form 10-K, in form and substance as required
      by the Exchange Act. Each such Form 10-K shall include the following items,
      in
      each case to the extent they have been delivered to the Securities Administrator
      within the applicable time frames set forth in this Agreement, the Servicing
      Agreement and Custodial Agreement, (i) an annual compliance statement for the
      Servicer, the Master Servicer and the Securities Administrator and any Servicing
      Function Participant engaged by such parties (each, with the Custodian, a
“Reporting
      Servicer”)
      as
      described under Section 3.17 and in such other agreement, (ii)(A) the annual
      reports on assessment of compliance with servicing criteria for each Reporting
      Servicer, as described under Section 3.16(a), and (B) if any Reporting
      Servicer’s report on assessment of compliance with servicing criteria described
      under Section 3.16(a) 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
      under Section 3.16(a) is not included as an exhibit to such Form 10-K,
      disclosure that such report is not included and an explanation why such report
      is not included, (iii)(A) the registered public accounting firm attestation
      report for each Reporting Servicer, as described under Section 3.16(b), and
      (B)
      if any registered public accounting firm attestation report described under
      Section 3.16(b) identifies any material instance of noncompliance, disclosure
      identifying such instance of noncompliance, or if any such registered public
      accounting firm attestation report is not included as an exhibit to such Form
      10-K, disclosure that such report is not included and an explanation why such
      report is not included, and (iv) a Sarbanes-Oxley Certification as described
      in
      Section 3.18; provided,
      however,
      that
      the Securities Administrator, at its discretion, may omit from the Form 10-K
      any
      annual compliance statement, assessment of compliance or attestation report
      that
      is not required to be filed with such Form 10-K pursuant to Regulation AB.
      Any
      disclosure or information in addition to (i) through (iv) above that is required
      to be included on Form 10-K (“Additional
      Form 10-K Disclosure”)
      shall
      be reported by the parties set forth on Exhibit O to the Depositor and
      Securities Administrator and directed and approved by the Depositor pursuant
      to
      the following paragraph and the Securities Administrator will have no duty
      or
      liability for any failure hereunder to determine or prepare any Additional
      Form
      10-K Disclosure, except as set forth in the next paragraph.

     

    
      
        
        

      

      
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    (ii) As
      set
      forth on Exhibit S hereto, no later than March 10 (with a 5 calendar day cure
      period) of each year that the Trust Fund is subject to the Exchange Act
      reporting requirements, commencing in 2007, (i) the parties to the DSLA Mortgage
      Loan Trust 2006-AR2 transaction shall be required to provide to the Securities
      Administrator and the Depositor, to the extent known by a responsible officer
      thereof, in EDGAR-compatible form (which may be Word or Excel documents easily
      convertible to EDGAR format), or in such other form as otherwise agreed upon
      by
      the Securities Administrator and such party, the form and substance of any
      Additional Form 10-K Disclosure, if applicable, together with an Additional
      Disclosure Notification and (ii) the Depositor will approve, as to form and
      substance, or disapprove, as the case may be, the inclusion of the Additional
      Form 10-K Disclosure on Form 10-K. The Seller will be responsible for any
      reasonable fees and expenses assessed or incurred by the Securities
      Administrator in connection with including any Additional Form 10-K Disclosure
      in Form 10-K pursuant to this paragraph.

    

    (iii) After
      preparing the Form 10-K, the Securities Administrator shall forward
      electronically a copy of the Form 10-K to the Depositor and McKee Nelson LLP.
      Within three Business Days after receipt of such copy, but no later than March
      25th,
      the
      Depositor shall notify the Securities Administrator in writing of any changes
      to
      or approval of such Form 10-K. In the absence of receipt of any written changes
      or approval, the Securities Administrator shall be entitled to assume that
      such
      Form 10-K is in final form and the Securities Administrator may proceed with
      the
      execution and filing of the Form 10-K. A senior officer of the Master Servicer
      in charge of the master servicing function shall sign each 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
      subsection (d)(ii) of this Section 3.19. Promptly (but no later than 1 Business
      Day) after filing with the Commission, the Securities Administrator will make
      available on its internet website a final executed copy of each Form 10-K filed
      by the Securities Administrator. The parties to this Agreement acknowledge
      that
      the performance by the Master Servicer and the Securities Administrator of
      its
      duties under this Section 3.19(b) 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 3.19(b), Section 3.18, Section
      3.17, Section 3.16(a) and Section 3.16(b). Neither the Master Servicer nor
      the
      Securities Administrator shall have any liability for any loss, expense, damage
      or claim arising out of or with respect to any failure to properly prepare,
      execute and/or timely file such Form 10-K, where such failure results from
      the
      Securities Administrator’s inability or failure to receive, on a timely basis,
      any information from any other party hereto needed to prepare, arrange for
      execution or file such Form 10-K, not resulting from its own negligence, bad
      faith or willful misconduct.

     

    
      
        
        

      

      
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    (iv) Form
      10-K
      requires the registrant to indicate (by checking "yes" or "no") that it “(1) has
      filed all reports required to be filed by Section 13 or 15(d) of the Exchange
      Act during the preceding 12 months (or for such shorter period that the
      registrant was required to file such reports), and (2) has been subject to
      such
      filing requirements for the past 90 days.” The Depositor hereby represents to
      the Securities Administrator that the Depositor has filed all such required
      reports during the preceding 12 months and that it has been subject to such
      filing requirement for the past 90 days. The Depositor shall notify the
      Securities Administrator in writing, no later than March 15th with respect
      to
      the filing of a report on Form 10-K, if the answer to the questions should
      be
“no.” The Securities Administrator shall be entitled to rely on such
      representations in preparing, executing and/or filing any such
      report.

    

    (c) Reports
      Filed on Form 8-K.

     

    (i) Within
      four (4) Business Days after the occurrence of an event requiring disclosure
      on
      Form 8-K (each such event, a “Reportable
      Event”),
      and
      if requested by the Depositor, the Securities Administrator shall prepare and
      file on behalf of the Trust Fund 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 in Form 8-K (“Form
      8-K Disclosure Information”)
      shall
      be reported by the parties set forth on Exhibit O to the Depositor and
      Securities Administrator and directed and approved by the Depositor pursuant
      to
      the following paragraph and the Securities Administrator will have no duty
      or
      liability for any failure hereunder to determine or prepare any Form 8-K
      Disclosure Information or any Form 8-K, except as set forth in the next
      paragraph.

    

    (ii) As
      set
      forth on Exhibit T hereto, for so long as the Trust Fund is subject to the
      Exchange Act reporting requirements, no later than the close of business (New
      York City time) on the 2nd Business Day after the occurrence of a Reportable
      Event (i) the parties to the DSLA Mortgage Loan Trust 2006-AR2 transaction
      shall
      be required to provide to the Securities Administrator and the Depositor, to
      the
      extent known by a responsible officer thereof, in EDGAR-compatible form (which
      may be Word or Excel documents easily convertible to EDGAR format), or in such
      other form as otherwise agreed upon by the Securities Administrator and such
      party, the form and substance of any Form 8-K Disclosure Information, if
      applicable, together with an Additional Disclosure Notification and (ii) the
      Depositor will approve, as to form and substance, or disapprove, as the case
      may
      be, the inclusion of the Form 8-K Disclosure Information. The Seller 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 in Form 8-K pursuant to this paragraph. 

    

    (iii) After
      preparing the Form 8-K, the Securities Administrator shall forward
      electronically a copy of the Form 8-K to the Depositor and McKee Nelson LLP.
      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 of any change to or approval of such Form 8-K. In
      the
      absence of receipt of any written changes or approval, the Securities
      Administrator shall be entitled to assume that such Form 8-K is in final form
      and
      the
      Securities Administrator
      may
      proceed with the execution and filing of the Form 8-K. A duly authorized
      representative of the Master Servicer shall sign each Form 8-K. If a Form 8-K
      cannot be filed on time or if a previously filed Form 8-K needs to be amended,
      the Securities Administrator will follow the procedures set forth in subsection
      (d)(ii) of this Section 3.19. Promptly (but no later than 1 Business Day) after
      filing with the Commission, the Securities Administrator will, make available
      on
      its internet website a final executed copy of each Form 8-K filed by the
      Securities Administrator. The parties to this Agreement acknowledge that the
      performance by the Master Servicer and the Securities Administrator of their
      respective duties under this Section 3.19(c) related to the timely preparation,
      execution and filing of Form 8-K is contingent upon such parties strictly
      observing all applicable deadlines in the performance of their duties under
      this
      Section 3.19(c). Neither the Securities Administrator nor the Master Servicer
      shall have any liability for any loss, expense, damage, claim arising out of
      or
      with respect to any failure to properly prepare, execute and/or timely file
      such
      Form 8-K, where such failure results from the Securities Administrator’s
      inability or failure to receive, on a timely basis, any information from any
      other party hereto needed to prepare, arrange for execution or file such Form
      8-K, not resulting from its own negligence, bad faith or willful
      misconduct.

     

    
      
        
        

      

      
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    (d) Suspension
      of Reporting; Amendments; Late Filings.

     

    (i) 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 Trust Fund under the Exchange Act. 

     

    (ii) In
      the
      event that the Securities Administrator is unable to timely file with the
      Commission all or any required portion of any Form 8-K, 10-D or 10-K required
      to
      be filed by this Agreement because required disclosure information was either
      not delivered to it or delivered to it after the delivery deadlines set forth
      in
      this Agreement or for any other reason, the Securities Administrator will
      promptly notify the Depositor and McKee Nelson LLP either via mail, e-mail
      or
      telephone. 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 10-K/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 Form 10-D. In the event that
      any
      previously filed Form 8-K, 10-D or 10-K needs to be amended in connection with
      any Additional Form 10-D Disclosure, any Additional Form 10-K Disclosure or
      any
      Additional Form 8-K Disclosure Information or any amendment to such disclosure
      (other than for the purpose of restating any Distribution Date Statement),
      the
      Securities Administrator will electronically notify the Depositor and McKee
      Nelson LLP and such other parties to the transaction as are affected by such
      amendment and such parties will cooperate to prepare any necessary 8-KA, 10-D/A
      or 10-K/A. Any Form 15, Form 12b-25 or any amendment to Form 8-K or 10-D shall
      be signed by a duly authorized representative of the Master Servicer. Any Form
      10-K amendment shall be signed by a senior officer of the Master Servicer in
      charge of the master servicing function. The parties to this Agreement
      acknowledge that the performance by the Master Servicer and the Securities
      Administrator of their respective duties under this Section 3.19(d) 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,
      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 obtain or receive, on a timely basis, any information
      from any other party hereto 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, not
      resulting from its own negligence, bad faith or willful misconduct.

     

    
      
        
        

      

      
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    Any
      notice or notification required to be delivered by the Securities Administrator
      to the Depositor pursuant to this Section 3.19 may be delivered via facsimile
      to
      (203) 618-2596 or telephonically by calling (203) 422-4284, and any notice
      or notification required to be delivered by the Securities Administrator to
      McKee Nelson LLP pursuant to this Section 3.19, may be delivered via e-mail
      to
      RBSGC@mckeenelson.com.

     

    SECTION
      3.20. Additional Information.

     

    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
      certification or statement, financial information and reports, and such other
      information related to such party or its performance hereunder.

     

    SECTION
      3.21. Intention
      of the Parties and Interpretation.

     

    Each
      of
      the parties acknowledges and agrees that the purpose of Section 3.16 through
      Section 3.22 of this Agreement is to facilitate compliance by the Securities
      Administrator and the Depositor with the provisions of Regulation AB promulgated
      by the Commission under the Exchange Act (17 C.F.R. §§ 229.1100 -
      229.1123), as such may be amended from time to time and subject to such
      clarification and interpretive advice as may be issued by the staff of the
      Commission from time to time. Therefore, each of the parties agrees that (a)
      the
      obligations of the parties hereunder shall be interpreted in such a manner
      as to
      accomplish that purpose, (b) the parties’ obligations hereunder will be
      supplemented and modified as necessary to be consistent with any such
      amendments, interpretive advice or guidance, convention or consensus among
      active participants in the asset-backed securities markets, advice of counsel,
      or otherwise in respect of the requirements of Regulation AB, (c) the parties
      shall comply with the reasonable requests made by the Securities Administrator
      or the Depositor for delivery of such additional or different information as
      the
      Securities Administrator or the Depositor may determine in good faith is
      necessary to comply with the provisions of Regulation AB, and (d) no amendment
      of this Agreement shall be required to effect any such changes in the parties’
obligations as are necessary to accommodate evolving interpretations of the
      provisions of Regulation AB.

     

    
      
        
        

      

      
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    SECTION
      3.22. Indemnification. 

     

    Each
      party required to deliver an assessment of compliance and attestation report
      pursuant to Section 3.16 or any additional disclosure pursuant to Section 3.19
      and including the Depositor, the Master Servicer, the Securities Administrator,
      the Trustee and any Servicing Function Participant engaged by such party,
      respectively (each, an “Item
      1122 Responsible Party”),
      shall
      indemnify and hold harmless the Securities Administrator, the Master Servicer
      and the Depositor, respectively, and each of their directors, officers,
      employees, agents, and affiliates from and against any and all claims, losses,
      damages, penalties, fines, forfeitures, reasonable legal fees and related costs,
      judgments and other costs and expenses arising out of or based upon (a) any
      breach by such Item 1122 Responsible Party of any of its obligations hereunder
      relating to its obligations as an Item 1122 Responsible Party, including
      particularly its obligations to provide any assessment of compliance,
      attestation report or compliance statement required under Section 3.16(a),
      3.16(b) or 3.17, respectively, or any information, data or materials required
      to
      be included in any Exchange Act report, (b) any material misstatement or
      omission in (x) any compliance certificate delivered by it, or by any Servicing
      Function Participant engaged by it, pursuant to this Agreement, (y) any
      assessment or (except in the case of the Trustee, in its capacity as Custodian)
      attestation delivered by or on behalf of it, or by any Servicing Function
      Participant engaged by it, pursuant to this Agreement, or (z) any Additional
      Form 10-D Disclosure, Additional Form 10-K Disclosure or Form 8-K Disclosure
      Information concerning such party and provided by it, or (c) the negligence,
      bad
      faith or willful misconduct of such Item 1122 Responsible Party in connection
      with its performance hereunder relating to its obligations as an Item 1122
      Responsible Party. If the indemnification provided for herein is unavailable
      or
      insufficient to hold harmless the Master Servicer, the Securities Administrator,
      the Depositor or the Seller, as the case may be, then each Item 1122 Responsible
      Party agrees that it shall contribute to the amount paid or payable by the
      Securities Administrator, the Master Servicer and the Depositor, as applicable,
      as a result of any claims, losses, damages or liabilities incurred by the
      Securities Administrator, the Master Servicer or the Depositor in such
      proportion as is appropriate to reflect the relative fault of the Securities
      Administrator, the Master Servicer or the Depositor on the one hand and such
      Item 1122 Responsible Party on the other. This indemnification shall survive
      the
      termination of this Agreement or the termination of any party to this
      Agreement.

     

    SECTION
      3.23. [Reserved].

     

    SECTION
      3.24. [Reserved].

     

    SECTION
      3.25. [Reserved].

     

    SECTION
      3.26. [Reserved].

     

    SECTION
      3.27. Closing Opinion of Counsel.

     

    On
      or
      before the Closing Date, the Master Servicer shall cause to be delivered to
      the
      Depositor, the Seller, the Trustee, the Certificate Insurer and Greenwich
      Capital Markets, Inc. an Opinion of Counsel, dated the Closing Date, in form
      and
      substance reasonably satisfactory to the Depositor, Greenwich Capital Markets,
      Inc., and the Seller as to the due authorization, execution and delivery of
      this
      Agreement by the Master Servicer and the enforceability thereof. 

     

    
      
        
        

      

      
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    SECTION
      3.28. [Reserved].

     

    SECTION
      3.29. Merger or Consolidation of the Master Servicer.

     

    (a) The
      Master Servicer will keep in full force and effect its existence, rights and
      franchises as a national banking association under the laws of the jurisdiction
      of its incorporation, and will obtain and preserve its qualification to do
      business as a foreign corporation in each jurisdiction in which such
      qualification is or shall be necessary to protect the validity and
      enforceability of this Agreement, the Certificates or any of the Mortgage Loans
      and to perform its duties under this Agreement.

     

    (b) Any
      Person into which the Master Servicer may be merged or consolidated, or any
      corporation resulting from any merger or consolidation to which the Master
      Servicer shall be a party, or any Person succeeding to the business of the
      Master Servicer, shall be the successor of the Master Servicer hereunder,
      without the execution or filing of any paper or further act on the part of
      any
      of the parties hereto, anything herein to the contrary
      notwithstanding.

     

    SECTION
      3.30. Indemnification of the Trustee, the Master Servicer and the Securities
      Administrator.

     

    (a) In
      addition to any indemnity required pursuant to Section 3.22 hereof, the Master
      Servicer agrees to indemnify the Indemnified Persons for, and to hold them
      harmless against, any loss, liability or expense (except as otherwise provided
      herein with respect to expenses) (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 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), an Indemnified Person shall have given the Master Servicer,
      any
      NIMS Insurer and the Depositor written notice thereof promptly after such
      Indemnified Person shall have with respect to such claim or legal action
      knowledge thereof. The Indemnified Person’s failure to give such notice shall
      not affect the Indemnified Person’s right to indemnification hereunder. This
      indemnity shall survive the resignation or removal of the Trustee, the Master
      Servicer or the Securities Administrator and the termination of this
      Agreement.

     

    (b) The
      Trust
      Fund will indemnify any Indemnified Person for any loss, liability or expense
      of
      any Indemnified Person not otherwise indemnified by the Master Servicer as
      referred to in Subsection (a) above or Subsection (c) below.

     

    
      
        
        

      

      
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    (c) In
      addition to any indemnity required pursuant to Section 3.22 hereof, the
      Securities Administrator agrees to indemnify the Indemnified Persons (other
      than
      the Securities Administrator) for, and to hold them harmless against, any loss,
      liability or expense (except as otherwise provided herein with respect to
      expenses) (including reasonable legal fees and disbursements of counsel)
      incurred on their part (i) in connection with, arising out of, or relating
      to
      the Securities Administrator’s failure to file any Exchange Act report which the
      Securities Administrator is responsible for filing in accordance with Section
      3.19, (ii) by reason of the Securities Administrator’s negligence or willful
      misconduct in the performance of such obligations pursuant to Section 3.19
      or
      (iii) by reason of the Securities Administrator’s reckless disregard of such
      obligations pursuant to Section 3.19, provided, in each case, that with respect
      to any such claim or legal action (or pending or threatened claim or legal
      action), an Indemnified Person shall have given the Securities Administrator
      and
      the NIMS Insurer written notice thereof promptly after such Indemnified Person
      shall have with respect to such claim or legal action knowledge thereof. The
      Indemnified Person’s failure to give such notice shall not affect the
      Indemnified Person’s right to indemnification hereunder. This indemnity shall
      survive the resignation or removal of the Trustee, the Master Servicer or the
      Securities Administrator and the termination of this Agreement.

     

    SECTION
      3.31. Limitations on Liability of the Master Servicer and Others;
      Indemnification of Trustee and Others.

     

    Subject
      to the obligation of the Master Servicer to indemnify the Indemnified Persons
      pursuant to Section 3.30:

     

    (a) The
      Master Servicer has undertaken to perform only such duties as are specifically
      set forth in this Agreement. 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 Trust Fund or
      the
      Certificateholders for taking any action or for refraining from taking any
      action in good faith pursuant to this Agreement, or for errors in judgment;
      provided,
      however,
      that
      this provision shall not protect the Master Servicer or any such Person against
      any breach of warranties or representations made herein or any liability which
      would otherwise be imposed by reason of such Person’s willful misfeasance, bad
      faith or gross negligence in the performance of duties or by reason of reckless
      disregard of obligations and duties hereunder.

     

    (b) The
      Master Servicer and any director, officer, employee or agent of the Master
      Servicer may rely in good faith on any document of any kind prima facie properly
      executed and submitted by any Person respecting any matters arising
      hereunder.

     

    (c) The
      Master Servicer, the Trustee (in its individual corporate capacity and as
      Trustee), the Custodian (including for such purpose, the Trustee acting in
      its
      capacity as Custodian) and any director, officer, employee or agent of the
      Master Servicer, the Trustee or the Custodian shall be indemnified by the Trust
      and held harmless thereby against any loss, liability or expense (except as
      otherwise provided herein with respect to expenses) (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, this Agreement, the
      Certificates or the Servicing Agreement or the transactions contemplated hereby
      or thereby (except, with respect to the Master Servicer, to the extent that
      the
      Master Servicer is indemnified by the Servicer thereunder), other than (i)
      with
      respect to the Master Servicer only, any such loss, liability or expense related
      to the Master Servicer’s failure to perform its duties in compliance with this
      Agreement or (ii) with respect to the Master Servicer or Custodian only, 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 its own duties hereunder or by reason of reckless disregard
      of
      its own obligations and duties hereunder or under a custodial
      agreement.

     

    
      
        
        

      

      
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    (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 Trust Fund and the
      Certificateholders hereunder. In such event, the legal expenses and costs of
      such action and any liability resulting therefrom shall be expenses, costs
      and
      liabilities of the Trust Fund, and the Master Servicer shall be entitled to
      be
      reimbursed therefor out of the Distribution Account as provided by Section
      4.03.
      Nothing in this Section 3.31 shall affect the Master Servicer’s obligation to
      supervise, or to take such actions as are necessary to enforce, the servicing
      and administration of the Mortgage Loans pursuant to Sections 3.01 and
      3.03.

     

    (e) In
      taking
      or recommending any course of action pursuant to this Agreement, unless
      specifically required to do so pursuant to this Agreement, the Master Servicer
      shall not be required to investigate or make recommendations concerning
      potential liabilities which the Trust Fund 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 the Servicer,
      except as otherwise expressly provided herein.

     

    SECTION
      3.32. Master Servicer Not to Resign. 

     

    Except
      as
      provided in Section 3.34, 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 Independent Opinion
      of Counsel (delivered at the expense of the Master Servicer) to such effect
      delivered to the Trustee, the Certificate Insurer and any NIMS Insurer. No
      such
      resignation by the Master Servicer shall become effective until the Trustee
      or a
      successor to the Master Servicer reasonably satisfactory to the Trustee, the
      Certificate Insurer and any NIMS Insurer shall have assumed the responsibilities
      and obligations of the Master Servicer in accordance with Section 7.02 hereof.
      The Trustee shall notify each Rating Agency, the Certificate Insurer and any
      NIMS Insurer of the resignation of the Master Servicer.

     

    If,
      at
      any time, Wells Fargo Bank, N.A., as Master Servicer resigns under this Section
      3.22, or sells or assigns its rights and obligations under Section 3.34, or
      is
      removed as Master Servicer pursuant to Section 7.01, then at such time Wells
      Fargo Bank, N.A. also shall resign (and shall be entitled to resign) as
      Securities Administrator, Paying Agent and Certificate Registrar under this
      Agreement. No such resignation by Wells Fargo Bank, N.A. as Securities
      Administrator, Paying Agent or Certificate Registrar under this Agreement shall
      become effective until a successor Securities Administrator, successor Paying
      Agent and successor Certificate Registrar reasonably satisfactory to the
      Depositor shall have assumed the responsibilities and obligations of the
      Securities Administrator, Paying Agent and Certificate Registrar in accordance
      with this Agreement. The Securities Administrator shall notify each Rating
      Agency of the resignation of Wells Fargo Bank, N.A. as the Securities
      Administrator, Paying Agent and Certificate Registrar. 

     

    
      
        
        

      

      
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    SECTION
      3.33. Successor Master Servicer.

     

    In
      connection with the appointment of any successor master servicer or the
      assumption of the duties of the Master Servicer, the Trustee may make such
      arrangements for the compensation of such successor master servicer out of
      payments on the Mortgage Loans as the Trustee and such successor master servicer
      shall agree which in no case shall exceed the Master Servicing Fee. If the
      successor master servicer does not agree that the proposed compensation is
      fair,
      such successor master servicer shall obtain two quotations of market
      compensation from third parties actively engaged in the servicing of
      single-family mortgage loans;
      provided,
      however,
      that
      each Rating Agency shall confirm in writing that any appointment of a successor
      Master Servicer (other than the Trustee) will not result in a downgrade in
      the
      then current rating of any Class of Certificates.

     

    SECTION
      3.34. Sale and Assignment of Master Servicing.

     

    The
      Master Servicer may sell and assign its rights and delegate its duties and
      obligations in their entirety as Master Servicer under this Agreement, with
      the
      written consent of the Depositor, the Certificate Insurer and any NIMS Insurer,
      in each case, which consent shall not be unreasonably withheld or delayed,
      and
      provided further 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 Depositor
      (as
      evidenced in writing signed by the Depositor); 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 ratings 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 (determined in the case of the Insured Certificates, without giving
      effect to the Certificate Insurance Policy), 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, the Certificate Insurer and the Depositor an Officer’s Certificate and
      an Independent Opinion of Counsel, (delivered at the Master Servicer’s expense)
      each stating that all conditions precedent to such action under this Agreement
      have been completed and such action is permitted by and complies with the terms
      of this Agreement. No such assignment or delegation shall affect any liability
      of the Master Servicer arising prior to the effective date thereof.

     

    
      
        
        

      

      
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    SECTION
      3.35. Reporting Requirements of the Commission.

     

    To
      the
      extent that, following the Closing Date, the content of Forms 8-K, 10-D, 10-K,
      15 or other Forms required by the Exchange Act and the Rules and Regulations
      of
      the Commission and the time by which such Forms are required to be filed,
      differs from the provisions of this Agreement, the Master Servicer and the
      Securities Administrator hereby agree that each shall reasonably cooperate
      to
      amend the provisions of this Agreement (in accordance with Section 12.01) in
      order to comply with such amended reporting requirements and such amendment
      of
      this Agreement. Notwithstanding the foregoing, neither the Master Servicer
      nor
      the Securities Administrator shall be obligated to enter into any amendment
      pursuant to this Section that adversely affects its obligations or immunities
      under this Agreement.

     

    SECTION
      3.36. Duties of the Credit Risk Manager.

     

    (a) The
      Certificateholders, by their purchase and acceptance of the Certificates,
      appoint Clayton Fixed Income Services Inc. as Credit Risk Manager. For and
      on
      behalf of the Depositor, the Credit Risk Manager will provide recommendations
      concerning certain delinquent and defaulted Mortgage Loans, and as to the
      collection of any Prepayment Penalty Amounts with respect to the Mortgage Loans.
      Such reports and recommendations will be based upon information provided
      pursuant to a Credit Risk Management Agreement to the Credit Risk Manager by
      the
      Servicer and/or the Master Servicer. The Credit Risk Manager shall look solely
      to the Servicer and/or the Master Servicer for all information and data
      (including loss and delinquency information and data) and loan level information
      and data relating to the servicing of the Mortgage Loans and neither the
      Securities Administrator nor the Trustee shall have any obligation to provide
      any such information to the Credit Risk Manager and shall not otherwise have
      any
      responsibility under the Credit Risk Management Agreement.

     

    (b) If
      applicable, the Credit Risk Manager shall reasonably cooperate with the
      Depositor, the Trustee, any NIMS Insurer and the Securities Administrator in
      connection with the Trust Fund’s satisfying the reporting requirements under the
      1934 Act with respect to any reports which may be prepared by the Credit Risk
      Manager.

     

    SECTION
      3.37. Limitation Upon Liability of the Credit Risk Manager.

     

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

     

    
      
        
        

      

      
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    SECTION
      3.38. Removal of Credit Risk Manager.

     

    The
      Credit Risk Manager may be removed as Credit Risk Manager by Certificateholders
      holding not less than a 66-2/3% Voting Interests in the Trust, in the exercise
      of its or their sole discretion, at any time, without cause, upon ten (10)
      days
      prior written notice. The Certificateholders shall provide such written notice
      to the Trustee and upon receipt of such notice, the Trustee shall provide
      written notice to the Credit Risk Manager of its removal, effective upon receipt
      of such notice.

     

    ARTICLE
      IV

     

    ACCOUNTS

     

    SECTION
      4.01. Servicing Accounts.

     

    (a) The
      Master Servicer shall enforce the obligation of the Servicer to establish and
      maintain one or more custodial accounts (the “Servicing
      Accounts”)
      in
      accordance with the Servicing Agreement, with records to be kept with respect
      thereto on a Mortgage Loan by Mortgage Loan basis, into which accounts shall
      be
      deposited within 48 hours (or as of such other time specified in the Servicing
      Agreement) of receipt all collections of principal and interest on any Mortgage
      Loan and with respect to any REO Property received by the Servicer, including
      Principal Prepayments, Insurance Proceeds, Liquidation Proceeds, Recoveries
      and
      advances made from the Servicer’s own funds (less, in the case of the Servicer,
      the applicable servicing compensation, in whatever form and amounts as permitted
      by the Servicing Agreement) and all other amounts to be deposited in each such
      Servicing Account. The Servicer is hereby authorized to make withdrawals from
      and deposits to the Servicing Account for purposes required or permitted by
      this
      Agreement and the Servicing Agreement. For the purposes of this Agreement,
      Servicing Accounts shall also include such other accounts as the Servicer
      maintains for the escrow of certain payments, such as taxes and insurance,
      with
      respect to certain Mortgaged Properties. The Servicing Agreement sets forth
      the
      criteria for the segregation, maintenance and investment of each Servicing
      Account, the contents of which are acceptable to the parties hereto as of the
      date hereof and changes to which shall not be made unless such changes are
      made
      in accordance with the provisions of Section 12.01 hereof. 

     

    (b) [Reserved];

     

    (c) To
      the
      extent provided in the Servicing Agreement and subject to this Article IV,
      on or
      before each Servicer Remittance Date, the Servicer shall withdraw or shall
      cause
      to be withdrawn from the Servicing Accounts and shall immediately remit or
      cause
      to be remitted to the Securities Administrator for deposit into the Distribution
      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 Initial Cut-off Date, or, in the case of Subsequent Mortgage Loans, on
      or
      before the applicable Subsequent Cut-off Date) with respect to each of the
      Mortgage Loans it is servicing:

     

    
      
        
        

      

      
        100

        
          

        

      

      
        
        

      

    

     

    (i) Monthly
      Payments on the Mortgage Loans received or any related portion thereof advanced
      by the Servicer pursuant to the Servicing Agreement which were due on or before
      the related Due Date, net of the amount thereof comprising the Servicing Fees
      and Lender Paid Mortgage Insurance Fees, if any;

     

    (ii) Principal
      Prepayments in full and any Liquidation Proceeds received by the 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 and any Recoveries received in the related Prepayment
      Period;

     

    (iii) Principal
      Prepayments in part received by the Servicer for such Mortgage Loans in the
      related Prepayment Period; 

     

    (iv) Prepayment
      Penalty Amounts, if any; and

     

    (v) any
      amount to be used as a delinquency advance or to pay any Interest Shortfalls,
      in
      each case, as required to be paid under the Servicing Agreement. 

     

    (d) Withdrawals
      may be made from a Servicing Account only to make remittances as provided in
      Section 4.01(c), 4.02 and 4.03; to reimburse the Master Servicer or the Servicer
      for 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,
      or as otherwise provided in the Servicing Agreement. As provided in Sections
      4.01(c) and 4.02(b), certain amounts otherwise due to the Servicer may be
      retained by them and need not be remitted to the Securities
      Administrator.

     

    SECTION
      4.02. Distribution Account. 

     

    (a) The
      Securities Administrator shall establish and maintain in the name of the
      Trustee, for the benefit of the Trust Fund and the Certificateholders, the
      Distribution Account as a segregated account or accounts, each of which shall
      be
      an Eligible Account. 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 from, all claims, liens, and encumbrances of any
      creditors or depositors of the Securities Administrator or the Master Servicer
      (whether made directly, or indirectly through a liquidator or receiver of the
      Trustee, the Securities Administrator or the Master Servicer). All Permitted
      Investments shall mature or be subject to redemption or withdrawal on or before,
      and shall be held until, the immediately succeeding Distribution Date. The
      Securities Administrator, Trustee or their affiliates are permitted to receive
      additional compensation that could be deemed to be in their economic
      self-interest for (i) serving as investment adviser, administrator, servicing
      agent, custodian or sub-custodian with respect to certain of the Permitted
      Investments, (ii) using affiliates to effect transactions in certain Permitted
      Investments and (iii) effecting transactions in certain Permitted Investments.
      The Master Servicer and the Securities Administrator shall deposit in the
      Distribution Account as identified by the Master Servicer or the Securities
      Administrator and as received by the Master Servicer or the Securities
      Administrator, the following amounts:

     

    
      
        
        

      

      
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    (i) any
      amounts withdrawn from a Servicing Account pursuant to Section 4.01(c) and
      the
      Servicing Agreement and remitted to the Securities Administrator; 

     

    (ii) any
      amounts required to be deposited in the Distribution Account by the Master
      Servicer with respect to the Mortgage Loans pursuant to this Agreement,
      including (a) Advances and any Compensating Interest Payments required to be
      made by the Master Servicer to the extent required but not made by the Servicer
      and (b) the amount of any Insurance Proceeds or Liquidation Proceeds received
      by
      or on behalf of the Master Servicer which were not deposited in a Servicing
      Account;

     

    (iii) any
      Insurance Proceeds, Liquidation Proceeds or Recoveries received by or on behalf
      of the Master Servicer which were not deposited in a Servicing Account;

     

    (iv) the
      Purchase Price with respect to any Mortgage Loans purchased by the Seller or
      the
      Originator under this Agreement or the Purchase Agreement, as applicable, any
      Substitution Adjustments pursuant to Section 2.03 of this Agreement, any
      purchase price paid by any NIMS Insurer for the purchase of any Distressed
      Mortgage Loan under Section 10.03, and all proceeds of any Mortgage Loans or
      property acquired with respect thereto purchased by the Terminator pursuant
      to
      Section 10.01;

     

    (v) any
      amounts required to be deposited with respect to losses on investments of
      deposits in the Distribution Account; and

     

    (vi) any
      other
      amounts received by or on behalf of the Master Servicer or the Securities
      Administrator and required to be deposited in the Distribution Account pursuant
      to this Agreement.

     

    (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 Trust
      Fund and Certificateholders in accordance with the terms and provisions of
      this
      Agreement. The requirements for crediting 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) late payment charges or
      assumption fees, tax service fees, statement account charges or payoff-charges,
      substitution, satisfaction, release and other like fees and charges (including
      all Prepayment Penalty Amounts) and (ii) the items enumerated in Subsections
      4.03(a)(i), (ii), (iii), (iv), (vi), (vii), (ix) and (x) with respect to the
      Securities Administrator, need not be remitted by the Servicer to the Master
      Servicer to the Distribution Account. 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, any
      provision herein to the contrary notwithstanding.

     

    
      
        
        

      

      
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    (c) The
      amount at any time credited to the Distribution Account shall, if invested,
      be
      invested at the direction of the Master Servicer, in the name of the Trustee,
      or
      its nominee, for the benefit of the Certificateholders, in Permitted Investments
      as follows. All Permitted Investments and investment income with respect to
      the
      investment of funds in the Distribution Account shall be for the benefit of
      the
      Master Servicer. All Permitted Investments shall mature or be subject to
      redemption or withdrawal on or before, and shall be held until, the Business
      Day
      prior to the next succeeding Distribution Date (except that if such Permitted
      Investment is an obligation of the Master Servicer, then such Permitted
      Investment shall mature not later than such applicable Distribution Date).
      Any
      and all investment earnings from such Permitted Investments shall be paid to
      the
      Master Servicer, and the risk of loss of moneys 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 Distribution Account within
      two
      Business Days of receipt of notification of such loss but not later than the
      next succeeding Distribution Date.

     

    SECTION
      4.03. Permitted Withdrawals and Transfers from the Distribution
      Account.

     

    (a) The
      Securities Administrator shall, from time to time, withdraw or transfer funds
      from the Distribution Account to the Servicer, to the Master Servicer, to the
      Trustee, to the Certificate Insurer or to itself for the following
      purposes:

     

    (i) to
      reimburse the Master Servicer or the Servicer for any Advance of its own funds
      or of the Servicer’s own funds, the right of the Master Servicer or the 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 Advance was made;

     

    (ii) to
      reimburse the Master Servicer or the Servicer from Insurance Proceeds or
      Liquidation Proceeds relating to a particular Mortgage Loan for amounts expended
      by the Master Servicer or the Servicer in good faith in connection with the
      restoration of the related Mortgaged Property which was damaged by an Uninsured
      Cause or in connection with the liquidation of such Mortgage Loan;

     

    (iii) to
      reimburse the Master Servicer or the 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 the Servicer from
      Liquidation Proceeds from a particular Mortgage Loan for Liquidation Expenses
      incurred with respect to such Mortgage Loan; 

     

    (iv) to
      pay
      the Master Servicer or the Servicer, as appropriate, from Liquidation Proceeds
      or Insurance Proceeds received in connection with the liquidation of any
      Mortgage Loan, the amount which it or the Servicer would have been entitled
      to
      receive under subclause (viii) 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;

     

    
      
        
        

      

      
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    (v) to
      pay
      the Master Servicer or the Servicer from the Purchase Price for any Mortgage
      Loan, the amount which it or the Servicer would have been entitled to receive
      under subclause (viii) of this Subsection (a) as servicing
      compensation;

     

    (vi) to
      reimburse the Master Servicer or the Servicer for servicing related advances
      of
      funds, the right to reimbursement pursuant to this subclause being 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 servicing advances
      were
      made;

     

    (vii) to
      reimburse the Master Servicer or the Servicer for any Advance or advance, after
      a Realized Loss has been allocated with respect to the related Mortgage Loan
      if
      the Advance or advance has not been reimbursed pursuant to clauses (i) and
      (vi);

     

    (viii) to
      pay
      the Master Servicer its monthly Master Servicing Fee and any investment income
      and other additional servicing compensation payable pursuant to Section
      3.14;

     

    (ix) to
      reimburse the Master Servicer or the Securities Administrator for any expenses
      recoverable by the Master Servicer or the Securities Administrator pursuant
      to
      Sections 3.03 and 3.31;

     

    (x) to
      reimburse or pay the Servicer any such amounts as are due thereto under the
      Servicing Agreement and have not been retained by or paid to the Servicer,
      to
      the extent provided in the Servicing Agreement;

     

    (xi) to
      reimburse the Trustee and the Securities Administrator for expenses, costs
      and
      liabilities incurred by or reimbursable to it from funds of the Trust Fund
      pursuant to Sections 3.30, 3.31 or 8.05, and to reimburse the Trustee for any
      fees, costs and expenses incurred by or reimbursable to it pursuant to Section
      2.03(a), 7.01(b), 8.02, 8.05 or 8.07, to the extent not otherwise reimbursed
      to
      it;

     

    (xii) to
      pay to
      the Master Servicer all investment earnings on amounts on deposit in the
      Distribution Account to what it is entitled under Section 4.02(c);

     

    (xiii) to
      pay
      the Certificate Insurer its Aggregate Premium Amount;

     

    (xiv) to
      pay
      the Credit Risk Manager the Credit Risk Manager Fee;

     

    (xv) to
      remove
      amounts deposited in error; and

     

    (xvi) to
      clear
      and terminate the Distribution Account pursuant to Section 10.01.

     

    (b) In
      addition, on or before the Business Day immediately preceding each Distribution
      Date, the Master Servicer shall deposit in the Distribution Account (or remit
      to
      the Securities Administrator for deposit therein) any Advances or Compensating
      Interest Payments, to the extent required to be made but not made by the
      Servicer and required to be made by the Master Servicer hereunder with respect
      to the Mortgage Loans.

     

    
      
        
        

      

      
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    (c) The
      Securities Administrator or the Master Servicer shall keep and maintain separate
      accounting, on a Mortgage Loan by Mortgage Loan basis, for the purpose of
      accounting for any payments or reimbursements from the Distribution Account
      pursuant to subclauses (i) through (vii), inclusive, (ix) and (xi) 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).

     

    (d) In
      order
      to comply with its duties under the USA PATRIOT Act of 2001, the Securities
      Administrator shall obtain and verify certain information and documentation
      from
      the other parties hereto, including, but not limited to, each such party's
      name,
      address and other identifying information.

     

    (e) On
      each
      Distribution Date, the Securities Administrator, as Paying Agent, shall withdraw
      funds on deposit in the Distribution Account to the extent of the aggregate
      Available Funds and distribute such amounts to the Holders of the Certificates
      and any other parties entitled thereto in accordance with Section
      5.01.

     

    SECTION
      4.04. [Reserved].

     

    SECTION
      4.05. Certificate Insurance Policy.

     

    (a) On
      or
      prior to the Closing Date, the Securities Administrator, on behalf of the
      Trustee, shall cause to be established and maintained the Policy Account, into
      which amounts received by the Securities Administrator pursuant to the
      Certificate Insurance Policy shall be deposited for the benefit of the Insured
      Certificates. Notwithstanding anything herein to the contrary, the Securities
      Administrator will only establish the Policy Account if there are any amounts
      to
      be deposited therein. Amounts on deposit in the Policy Account shall not be
      invested and shall not be held in an interest-bearing account.

     

    (b) As
      soon
      as possible, and in no event later than 12:00 noon New York time on the second
      Business Day immediately preceding any Distribution Date, the Securities
      Administrator shall furnish the Certificate Insurer and the Trustee with a
      completed Notice in the form set forth as Exhibit A to the Endorsement to the
      Certificate Insurance Policy in the event that (a) the related Available Funds
      (other than any amounts in respect of Insured Amounts) are insufficient to
      pay
      the Monthly Interest Distributable Amount (net of any Net Interest Shortfalls,
      Basis Risk Shortfalls or Net Deferred Interest) with respect to the Holders
      of
      the Insured Certificates on such Distribution Date or (b) a Realized Loss is
      to
      be allocated to the Class 1A-1B or Class 2A-1C Certificates, as applicable,
      on
      such Distribution Date; provided,
      however,
      that if
      such Distribution Date is the Final Distribution Date, the Notice shall also
      include the aggregate outstanding Class Principal Balances on each Class of
      the
      Insured Certificates, after giving effect to all payments of principal on the
      Insured Certificates on such Final Distribution Date, other than pursuant to
      the
      Certificate Insurance Policy. The Notice shall specify the amount of Insured
      Amounts for each Class of Insured Certificate and shall constitute a claim
      for
      an Insured Amount pursuant to the Certificate Insurance Policy.

     

    
      
        
        

      

      
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    (c) Upon
      receipt of an Insured Amount from the Certificate Insurer on behalf of the
      Holder of the Insured Certificates, the Securities Administrator shall deposit
      such Insured Amount into the Policy Account. All such amounts on deposit in
      the
      Policy Account shall remain uninvested. On or prior to each Distribution Date,
      the Securities Administrator shall transfer amounts on deposit in the Policy
      Account to the Distribution Account and shall distribute such Insured Amounts
      to
      the Insured Certificates pursuant to Section 5.01.

     

    The
      Securities Administrator shall include on each Distribution Date any Insured
      Amounts received by it from or on behalf of the Certificate Insurer for such
      Distribution Date (i) in the amount distributed to the Holders of the Insured
      Certificates pursuant to Section 5.01 and (ii) in the amount deemed to have
      been
      distributed to the Class 1A-1B or Class 2A-1C regular interests, as applicable,
      and deposited for their benefit into the Distribution Account. If on any
      Distribution Date the Securities Administrator determines that the Certificate
      Insurer has paid more under the Certificate Insurance Policy than is required
      by
      the terms thereof, the Securities Administrator shall promptly return the excess
      amount to the Certificate Insurer.

     

    Funds
      received by the Securities Administrator as a result of any claim under the
      Certificate Insurance Policy shall be used solely for payment to the Holders
      of
      the Insured Certificates and may not be applied for any other purpose,
      including, without limitation, satisfaction of any costs, expenses or
      liabilities of the Securities Administrator, the Master Servicer or the Trust
      Fund. Any funds remaining in the Policy Account on the first Business Day after
      each Distribution Date shall be remitted promptly to the Certificate Insurer.
      The Securities Administrator shall keep complete and accurate records in respect
      of (i) all funds remitted to it by the Certificate Insurer and deposited into
      the Policy Account and (ii) the allocation of such funds to (A) payments of
      interest on and principal in respect of the Insured Certificates and (B) the
      amount of funds available to make distributions on the Insured Certificates.
      The
      Certificate Insurer shall have the right to inspect such records at reasonable
      times during normal business hours upon three Business Days’ prior written
      notice to the Securities Administrator.

     

    (d) The
      Securities Administrator shall (i) receive as attorney-in-fact of the Holders
      of
      the Insured Certificates any Insured Amount or Preference Claim delivered to
      it
      by the Certificate Insurer for payment to such Holders and (ii) distribute
      any
      such Insured Amount to such Holder as set forth in Section 5.01. Anything herein
      to the contrary notwithstanding, solely for purposes of determining the
      Certificate Insurer’s rights, as applicable, as subrogee for payments
      distributable pursuant to the Certificate Insurance Policy, Insured Amounts
      disbursed by the Securities Administrator from proceeds of the Certificate
      Insurance Policy shall not be considered payment by the Trust Fund with respect
      to the Insured Certificates, nor shall such disbursement of Insured Amounts
      discharge the obligations of the Trust Fund with respect to the amounts thereof,
      and the Certificate Insurer shall become owner of such amounts to the extent
      covered by such Insured Amounts as the deemed assignee of such Holders. The
      Securities Administrator hereby agrees on behalf of the Holders of the Insured
      Certificates (and each such Holder, by its acceptance of its Insured
      Certificate, hereby agrees) for the benefit of the Certificate Insurer that,
      to
      the extent the Certificate Insurer pays any Insured Amount or Preference Claim,
      either directly or indirectly (as by paying through the Securities
      Administrator), to the Holders of the Insured Certificates, the Certificate
      Insurer will be entitled to be subrogated to any rights of such Holder to
      receive the amounts for which such Insured Amount or Preference Claim was paid,
      to the extent of such payment, and will be entitled to receive the Certificate
      Insurer Reimbursement Amount as set forth in Section 5.01.

     

    
      
        
        

      

      
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    In
      the
      event the Securities Administrator or the Trustee (who will promptly notify
      the
      Securities Administrator) receives a certified copy of an order of the
      appropriate court that any scheduled payment of principal or interest on an
      Insured Certificate has been voided in whole or in part as a preference payment
      under applicable bankruptcy law, the Securities Administrator shall (i) promptly
      notify the Certificate Insurer and (ii) comply with the provisions of the
      Certificate Insurance Policy, to obtain payment by the Certificate Insurer
      of
      such voided scheduled payment. The Securities Administrator shall furnish to
      the
      Certificate Insurer its records listing the payments on the affected Insured
      Certificates, if any, that have been made by the Securities Administrator and
      subsequently recovered from the affected Holders, and the dates on which such
      payments were made by the Securities Administrator.

     

    (e) At
      the
      end of the Term of the Certificate Insurance Policy (as defined in the
      Certificate Insurance Policy), the Securities Administrator shall return the
      Certificate Insurance Policy to the Certificate Insurer for
      cancellation.

     

    (f) Upon
      its
      becoming aware of the occurrence of an Event of Default, the Securities
      Administrator shall promptly notify the Certificate Insurer of such Event of
      Default.

     

    (g) The
      Securities Administrator shall promptly notify the Certificate Insurer of either
      of the following as to which it has actual knowledge: (A) the commencement
      of
      any proceeding by or against the Depositor commenced under the United States
      bankruptcy code or any other applicable bankruptcy, insolvency, receivership,
      rehabilitation or similar law (an “Insolvency Proceeding”) and (B) the making of
      any claim in connection with any Insolvency Proceeding seeking the avoidance
      as
      a preferential transfer (a “Preference Claim”) of any distribution made with
      respect to the Insured Certificates as to which it has actual knowledge. Each
      Holder of an Insured Certificate, by its purchase of such Insured Certificates,
      and the Securities Administrator and the Trustee each hereby agree that the
      Certificate Insurer (so long as no Certificate Insurer Default exists) may
      at
      any time during the continuation of any proceeding relating to a Preference
      Claim direct all matters relating to such Preference Claim, including, without
      limitation, (i) the direction of any appeal of any order relating to any
      Preference Claim and (ii) the posting of any surety, supersedes or performance
      bond pending any such appeal. In addition and without limitation of the
      foregoing, the Certificate Insurer shall be subrogated to the rights of the
      Securities Administrator, the Trustee and each Holder of an Insured Certificate
      in the conduct of any Preference Claim, including, without limitation, all
      rights of any party to an adversary proceeding action with respect to any court
      order issued in connection with any such Preference Claim.

     

    (h) The
      Master Servicer shall designate a contact person for the Certificate Insurance
      Policy who shall be available to the Certificate Insurer to provide reasonable
      access to information regarding the Mortgage Loans. All inquiries shall be
      to
      the attention of Client Manager - DSLA 2006-AR2, at the address provided by
      the
      Master Servicer in Section 12.05.

     

    
      
        
        

      

      
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    (i) With
      respect to this Section 4.05, the terms “receipt” and “received” shall mean
      actual delivery to the Certificate Insurer, if any, prior to 12:00 p.m., New
      York time, on a Business Day; delivery either on a day that is not a Business
      Day or after 12:00 p.m., New York time, shall be deemed to be “received” on the
      next succeeding Business Day. If any notice or certificate given under the
      Certificate Insurance Policy by the Securities Administrator is not in proper
      form or is not properly completed, executed or delivered, it shall be deemed
      not
      to have been “received.” The Certificate Insurer shall promptly so advise the
      Securities Administrator and the Securities Administrator may submit an amended
      notice.

     

    (j) All
      references herein to the ratings assigned to the Insured Certificates and to
      the
      interests of any Certificateholders therein shall be without regard to the
      Certificate Insurance Policy.

     

    SECTION
      4.06. Prefunding Account.

     

    On
      or
      prior to the Closing Date, the Securities Administrator shall establish and
      maintain, on behalf of the Certificateholders, the Prefunding Account. On the
      Closing Date the Depositor shall remit the Prefunded Amount to the Securities
      Administrator for deposit in the Prefunding Account. From the Prefunded Amount,
      $91,827,627.00
      and
      $103,648,944.00 shall
      be
      applied to the purchase of Subsequent Mortgage Loans for Loan Group 1 and Loan
      Group 2, respectively. On each Subsequent Transfer Date, upon satisfaction
      of
      the conditions for such Subsequent Transfer Date set forth in
      Section 2.01(b), with respect to the related Subsequent Transfer Agreement,
      the Securities Administrator shall remit to the Depositor the applicable
      Aggregate Subsequent Transfer Amount as payment of the purchase price for the
      related Subsequent Mortgage Loans.

     

    If
      any
      funds remain in the Prefunding Account at the end of the Prefunding Period,
      to
      the extent that they represent earnings on the amounts originally deposited
      into
      the Prefunding Account, the Securities Administrator shall distribute them
      to
      the order of the Depositor. The remaining funds shall be transferred to the
      Distribution Account to be included as part of principal distributions to the
      Certificates on the Distribution Date in the month following the end of the
      Prefunding Period.

     

    Each
      institution at which the Prefunding Account is maintained shall either hold
      such
      funds on deposit uninvested or shall invest the funds therein in Permitted
      Investments as directed in writing by the Depositor, which shall mature not
      later than the Business Day immediately preceding a Subsequent Transfer Date
      and
      shall not be sold or disposed of prior to its maturity. All such Permitted
      Investments shall be made in the name of the Trustee, for the benefit of the
      Certificateholders. All income and gain net of any losses realized from any
      such
      balances or investment of funds on deposit in the Prefunding Account shall
      be
      for the benefit of the Depositor and shall be remitted to it monthly. The amount
      of any net investment losses in the Prefunding Account shall promptly be
      deposited by the Depositor in the Prefunding Account. The Securities
      Administrator in its fiduciary capacity shall not be liable for the amount
      of
      any loss incurred in respect of any investment or lack of investment of funds
      held in the Prefunding Account (other than as provided in this Section 4.06)
      and
      made in accordance with this Section 4.06.

     

    
      
        
        

      

      
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    ARTICLE
      V

     

    FLOW
      OF FUNDS

     

    SECTION
      5.01. Distributions.

     

    (a) (1)
      On
      each Distribution Date and after making any withdrawals from the Distribution
      Account pursuant to Section 4.03(a), the Securities Administrator, as Paying
      Agent, shall withdraw funds on deposit in the Distribution Account to the extent
      of Available Funds for each Loan Group for such Distribution Date and, based
      on
      the Distribution Date Statement, make the following disbursements and transfers
      as set forth below:

     

    (i)  
       the
      Available Funds for each Loan Group shall be distributed on each Distribution
      Date other than on the Distribution Date following the optional purchase of
      the
      Mortgage Loans by the Terminator pursuant to Section 10.01(a) in the following
      order of priority:

     

    (A) on
      the
      Distribution Date in October 2016 and on each Distribution Date until the
      earlier of (i) the Distribution Date in September 2026 and (ii) the termination
      of the Trust, for deposit in the Final Maturity Reserve Account, the Final
      Maturity Reserve Amount;

     

    (B) from
      the
      remaining Interest Remittance Amount for the related Loan Group to the holders
      of the Class 1A-1A, Class 1A-1B, Class 2A-1A, Class 2A-1B1, Class 2A-1B2, Class
      2A-1B3 and Class 2A-1C, as applicable, the related Monthly Interest
      Distributable Amount and the related Unpaid Interest Shortfall Amount, if any,
      to which each such Class is entitled, in each case, on a pro rata basis to
      each
      such Class in the related Certificate Group based on the amounts due such Class;
      provided,
      that if
      the Interest Remittance Amount for Loan Group 1 is insufficient to pay the
      Class
      1A-1A and the Class 1A-1B Certificates, the related Monthly Interest
      Distributable Amount, the Securities Administrator shall withdraw the amount
      of
      such deficiency shortfalls from the remaining Interest Remittance Amount for
      Loan Group 2 after distributions are made of the Monthly Interest Distributable
      Amount to the Class 2A-1A, Class 2A-1B1, Class 2A-1B2, Class 2A-1B3 and Class
      2A-1C Certificates, and if the Interest Remittance Amount for Loan Group 2
      is
      insufficient to pay the Class 2A-1A, Class 2A-1B1, Class 2A-1B2, Class 2A-1B3
      and Class 2A-1C Certificates the related Monthly Interest Distributable Amount,
      the Securities Administrator shall withdraw the amount of such deficiency
      shortfalls from the remaining Interest Remittance Amount for Loan Group 1 after
      distributions are made of the Monthly Interest Distributable Amount to the
      Class
      1A-1A and Class 1A-1B Certificates;

     

    (C) from
      the
      remaining Interest Remittance Amounts for both Loan Groups, reimbursement
      amounts owed to the Certificate Insurer;

     

    
      
        
        

      

      
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    (D) from
      the
      remaining Interest Remittance Amounts for both Loan Groups, to the holders
      of
      the Class M-1 Certificates, the related Monthly Interest Distributable
      Amount;

     

    (E) from
      the
      remaining Interest Remittance Amounts for both Loan Groups, to the holders
      of
      the Class M-2 Certificates, the related Monthly Interest Distributable Amount;
      

     

    (F) from
      the
      remaining Interest Remittance Amounts for both Loan Groups, to the holders
      of
      the Class M-3 Certificates, the related Monthly Interest Distributable
      Amount;

     

    (G) from
      the
      remaining Interest Remittance Amounts for both Loan Groups, to the holders
      of
      the Class M-4 Certificates, the related Monthly Interest Distributable
      Amount;

     

    (H) from
      the
      remaining Interest Remittance Amounts for both Loan Groups, to the holders
      of
      the Class M-5 Certificates, the related Monthly Interest Distributable Amount;
      

     

    (I) from
      the
      remaining Interest Remittance Amounts for both Loan Groups, to the holders
      of
      the Class M-6 Certificates, the related Monthly Interest Distributable
      Amount;

     

    (J) from
      the
      remaining Interest Remittance Amounts for both Loan Groups, to the holders
      of
      the Class M-7 Certificates, the related Monthly Interest Distributable
      Amount;

     

    (K) to
      the
      Credit Risk Manager, the Credit Risk Manager Fee; and

     

    (L) for
      application as part of Net Monthly Excess Cashflow for such Distribution Date,
      as described under Section 5.01(a)(1)(iv) below;

     

    On
      any
      Distribution Date, any shortfalls resulting from the application of the Relief
      Act and any Prepayment Interest Shortfalls to the extent not covered by
      Compensating Interest Payments will be allocated to the Monthly Interest
      Distributable Amounts with respect to the LIBOR Certificates on a pro
      rata basis,
      based on the respective amounts of interest accrued on such Certificates for
      such Distribution Date. The holders of the LIBOR Certificates will not be
      entitled to reimbursement for any such interest shortfalls.

     

    (ii)
        On
      each
      Distribution Date (a) prior to the applicable Stepdown Date or (b) on which
      a
      Trigger Event is in effect, distributions in respect of principal to the extent
      of the Principal Distribution Amount for each Loan Group will be distributed
      in
      the following amounts and order of priority:

     

    (A) from
      the
      related Principal Distribution Amount for the related Loan Group, concurrently
      as follows:

     

    
      
        
        

      

      
        110

        
          

        

      

      
        
        

      

    

     

    (1) to
      the
      holders of the Class 1A-1A and Class 1A-1B Certificates, the Principal
      Distribution Amount, pro
      rata,
      based
      on their Certificate Principal Balances immediately prior to such Distribution
      Date, until their respective Certificate Principal Balances are reduced to
      zero;
      and

     

    (2) to
      the
      holders of the Class 2A-1A, Class 2A-1B1, Class 2A-1B2, Class 2A-1B3 and Class
      2A-1C Certificates, the Principal Distribution Amount for Loan Group 2, on
      a
pro
      rata
      basis to
      the Class 2A-1A Certificates, to the Class 2A-1B1, Class 2A-1B2 and Class 2A-1B3
      Certificates (as a group) and to the Class 2A-1C Certificates, based on their
      respective Certificate Principal Balances immediately prior to such Distribution
      Date, concurrently as follows:

     

    
      	 	
              (a)

            	
              to
                the holders of the Class 2A-1A Certificates, until its Certificate
                Principal Balance is reduced to
                zero;

            

    

     

    
      	 	
              (b)

            	
              sequentially,
                to the holders of the Class 2A-1B1, Class 2A-1B2 and Class 2A-1B3
                Certificates, in that order, until their respective Certificate Principal
                Balances are reduced to zero; and

            

    

     

    
      	 	
              (c)

            	
              to
                the holders of the Class 2A-1C Certificates, until its Certificate
                Principal Balance is reduced to
                zero;

            

    

     

    (B) to
      the
      Certificate Insurer, any Certificate Insurer Reimbursement Amounts due to the
      Certificate Insurer;

     

    (C) from
      the
      Principal Distribution Amount for both Loan Groups

     

    (1) to
      the
      holders of the Class M-1 Certificates, until the Certificate Principal Balance
      thereof has been reduced to zero;

     

    (2) to
      the
      holders of the Class M-2 Certificates, until the Certificate Principal Balance
      thereof has been reduced to zero; 

     

    (3) to
      the
      holders of the Class M-3 Certificates, until the Certificate Principal Balance
      thereof has been reduced to zero;

     

    (4) to
      the
      holders of the Class M-4 Certificates, until the Certificate Principal Balance
      thereof has been reduced to zero;

     

    (5) to
      the
      holders of the Class M-5 Certificates, until the Certificate Principal Balance
      thereof has been reduced to zero; 

     

    (6) to
      the
      holders of Class M-6 Certificates, until the Certificate Principal Balance
      thereof has been reduced to zero;

     

    
      
        
        

      

      
        111

        
          

        

      

      
        
        

      

    

     

    (7) to
      the
      holders of Class M-7 Certificates, until the Certificate Principal Balance
      thereof has been reduced to zero; and

     

    (8) for
      application as part of Net Monthly Excess Cashflow for such Distribution Date,
      as described under Section 5.01(a)(1)(iv) below.

     

    (iii) 
      On
      each
      Distribution Date (a) on or after the applicable Stepdown Date and (b) on which
      a Trigger Event is not in effect, distributions in respect of principal to
      the
      extent of the Principal Distribution Amount for each Loan Group will be
      distributed in the following amounts and order of priority:

     

    (A) from
      the
      Group 1 Principal Distribution Amount and the Group 2 Principal Distribution
      Amount, for the related Loan Group, concurrently as follows:

     

    (1) to
      the
      holders of the Class 1A-1A and Class 1A-1B Certificates, the Group 1 Principal
      Distribution Amount, pro
      rata,
      based
      on their Certificate Principal Balances immediately prior to such Distribution
      Date, until their respective Certificate Principal Balances are reduced to
      zero;
      and

     

    (2) to
      the
      holders of the Class 2A-1A, Class 2A-1B1, Class 2A-1B2, Class 2A-1B3 and Class
      2A-1C Certificates, the Group 2 Principal Distribution Amount for Loan Group
      2,
      on a pro
      rata
      basis to
      the Class 2A-1A Certificates, to the Class 2A-1B1, Class 2A-1B2 and Class 2A-1B3
      Certificates (as a group) and to the Class 2A-1C Certificates, based on their
      respective Certificate Principal Balances immediately prior to such Distribution
      Date, concurrently as follows:

     

    
      	 	
              (a)

            	
              to
                the holders of the Class 2A-1A Certificates, until its Certificate
                Principal Balance is reduced to
                zero;

            

    

     

    
      	 	
              (b)

            	
              sequentially,
                to the holders of the Class 2A-1B1, Class 2A-1B2 and Class 2A-1B3
                Certificates, in that order, until their respective Certificate Principal
                Balances are reduced to zero; and

            

    

     

    
      	 	
              (c)

            	
              to
                the holders of the Class 2A-1C Certificates, until its Certificate
                Principal Balance is reduced to
                zero;

            

    

     

    (B) to
      the
      Certificate Insurer any Certificate Insurer Reimbursement Amounts due to the
      Certificate Insurer; and

     

    (C) from
      the
      Principal Distribution Amount for both Loan Groups

     

    (1) to
      the
      holders of the Class M-1 Certificates, the Class M-1 Principal Distribution
      Amount;

     

    
      
        
        

      

      
        112

        
          

        

      

      
        
        

      

    

     

    (2) to
      the
      holders of the Class M-2 Certificates, the Class M-2 Principal Distribution
      Amount

     

    (3) to
      the
      holders of the Class M-3 Certificates, the Class M-3 Principal Distribution
      Amount;

     

    (4) to
      the
      holders of the Class M-4 Certificates, the Class M-4 Principal Distribution
      Amount;

     

    (5) to
      the
      holders of the Class M-5 Certificates, the Class M-5 Principal Distribution
      Amount; 

     

    (6) to
      the
      holders of the Class M-6 Certificates, the Class M-6 Principal Distribution
      Amount

     

    (7) to
      the
      holders of the Class M-7 Certificates, the Class M-7 Principal Distribution
      Amount; and

     

    (8) for
      application as part of Net Monthly Excess Cashflow for such Distribution Date,
      as described under Section 5.01(a)(1)(iv) below.

     

    (iv) 
      On
      each
      Distribution Date, other than the Distribution Date following the optional
      purchase of the Mortgage Loans pursuant to Section 10.01, the Net Monthly Excess
      Cashflow shall be distributed as follows:

     

    (A) to
      the
      Holders of the Class or Classes of Certificates then entitled to receive
      distributions in respect of principal, in an amount equal to any Extra Principal
      Distribution Amount, pro
      rata,
      to each
      such Class based on the Class Principal Balance of each such Certificate prior
      to such Distribution Date as a distribution in respect of
      principal;

     

    (B) to
      the
      Certificate Insurer, any unpaid remaining Certificate Insurer Reimbursement
      Amounts;

     

    (C) to
      the
      Holders of the Class M-1 Certificates, in an amount equal to the Unpaid Interest
      Shortfall Amount allocable to such Certificates;

     

    (D) to
      the
      Holders of the Class M-1 Certificates, in an amount equal to the Allocated
      Realized Loss Amount allocable to such Certificates;

     

    (E) to
      the
      Holders of the Class M-2 Certificates, in an amount equal to the Unpaid Interest
      Shortfall Amount allocable to such Certificates;

     

    (F) to
      the
      Holders of the Class M-2 Certificates, in an amount equal to the Allocated
      Realized Loss Amount allocable to such Certificates;

     

    (G) to
      the
      Holders of the Class M-3 Certificates, in an amount equal to the Unpaid Interest
      Shortfall Amount allocable to such Certificates;

     

    
      
        
        

      

      
        113

        
          

        

      

      
        
        

      

    

     

    (H) to
      the
      Holders of the Class M-3 Certificates, in an amount equal to the Allocated
      Realized Loss Amount allocable to such Certificates;

     

    (I) to
      the
      Holders of the Class M-4 Certificates, in an amount equal to the Unpaid Interest
      Shortfall Amount allocable to such Certificates;

     

    (J) to
      the
      Holders of the Class M-4 Certificates, in an amount equal to the Allocated
      Realized Loss Amount allocable to such Certificates;

     

    (K) to
      the
      Holders of the Class M-5 Certificates, in an amount equal to the Unpaid Interest
      Shortfall Amount allocable to such Certificates;

     

    (L) to
      the
      Holders of the Class M-5 Certificates, in an amount equal to the Allocated
      Realized Loss Amount allocable to such Certificates;

     

    (M) to
      the
      Holders of the Class M-6 Certificates, in an amount equal to the Unpaid Interest
      Shortfall Amount allocable to such Certificates;

     

    (N) to
      the
      Holders of the Class M-6 Certificates, in an amount equal to the Allocated
      Realized Loss Amount allocable to such Certificates;

     

    (O) to
      the
      Holders of the Class M-7 Certificates, in an amount equal to the Unpaid Interest
      Shortfall Amount allocable to such Certificates; 

     

    (P) to
      the
      Holders of the Class M-7 Certificates, in an amount equal to the Allocated
      Realized Loss Amount allocable to such Certificates;

     

    (Q) to
      the
      Basis Risk Reserve Fund, any Required Reserve Fund Deposit;

     

    (R) if
      on any
      Distribution Date after the Distribution Date in August 2026 the aggregate
      Stated Principal Balance of Mortgage Loans having 40-year original terms to
      maturity is greater than the Overcollateralization Target Amount for that
      Distribution Date, to the LIBOR certificates, in the amount and the priority
      set
      forth in Sections 5.01(a)(1)(ii) or (iii), as applicable;

     

    (S) to
      the
      Holders of the Class C Certificates, the Class C Distributable Amount on the
      final Distribution Date; and

     

    (T) to
      the
      Holder of the Class R Certificate, any Available Funds, other than any portion
      thereof in respect of Premium Proceeds, then remaining.

     

    (v)  
      On
      the
      Distribution Date following the optional purchase of the Mortgage Loans pursuant
      to Section 10.01, Available Funds will be applied in the amounts and in the
      order specified above, except, no amounts will distributed pursuant to Sections
      5.01(a)(1)(iv)(S) and 5.01(a)(iv)(T) above, and the portion of Available Funds
      remaining after the distribution pursuant to Sections 5.01(a)(1)(i),
      5.01(a)(1)(ii), 5.01(a)(1)(iii) and 5.01(a)(1)(iv) will be applied in the
      following order:

     

    
      
        
        

      

      
        114

        
          

        

      

      
        
        

      

    

     

    (A) in
      the
      amounts and the priority set forth in Section 5.01(a)(1)(ii);

     

    (B) to
      the
      Holders of the Class C Certificates, the Class C Distributable Amount;
      and

     

    (C) to
      the
      Holder of the Class R Certificate, any Available Funds, other than any portion
      thereof in respect of Premium Proceeds, then remaining.

     

    (2) With
      respect to any Distribution Date and Insured Amounts, the Securities
      Administrator shall make payments pursuant to Sections 5.01(a)(1)(i),
      5.01(a)(1)(ii) and 5.01(a)(1)(iii), after application of Available Funds, with
      respect to the Class 1A-1B and Class 2A-1C Certificates from the amount received
      by the Securities Administrator under the Certificate Insurance Policy for
      such
      Distribution Date pursuant to Section 4.02. Funds received by the Securities
      Administrator as a result of any claim under the Certificate Insurance Policy
      shall be applied solely to payments to the Class 1A-1B and Class 2A-1C
      Certificateholders and may not be applied to satisfy any other Classes of
      Certificates or costs, expenses or liabilities of the Master Servicer, the
      Servicer, the Securities Administrator, the Credit Risk Manager, the Trustee
      or
      the Trust Fund.

     

    (3) On
      each
      Distribution Date, the Securities Administrator, as Paying Agent, shall
      distribute to the Holder of the Class P Certificate all Prepayment Penalty
      Amounts in respect of the Mortgage Loans received by the Servicer and remitted
      to the Securities Administrator for the related Prepayment Period.

     

    (b) Amounts
      to be paid to the Holders of a Class of Certificates shall be payable with
      respect to all Certificates of that Class, pro
      rata,
      based
      on the Certificate Principal Balance of each Certificate of that
      Class.

     

    (c) On
      each
      Distribution Date, the Monthly Interest Distributable Amounts for the Classes
      of
      Senior Certificates and Subordinate Certificates on such Distribution Date
      shall
      be reduced proportionately, based on (A) in the case of the Senior Certificates,
      the Monthly Interest Distributable Amount to which they would otherwise be
      entitled and (B) in the case of the Subordinate Certificates, interest accrued
      at the related Pass-Through Rate on the related Apportioned Principal Balance
      of
      each such Class, by Net Interest Shortfalls with respect to the related Loan
      Group.

     

    (d) Notwithstanding
      the priorities and allocations set forth in Section 5.01(a) above, if on any
      Distribution Date on which the Senior Certificates related to a Loan Group
      constitute an Undercollateralized Group, all amounts otherwise distributable
      as
      Available Funds on the Subordinate Certificates, in reverse order of priority
      (or, following the Senior Credit Support Depletion Date, such other amounts
      described in the immediately following sentence), will be distributed as
      principal to the Senior Certificates of such Undercollateralized Group in the
      same order and priority and allocation provided in Section 5.01(a), first,
      up
      to the
      sum of the Accrued Interest Amount and the Principal Deficiency Amount for
      the
      Undercollateralized Group (such distribution, an “Undercollateralization
      Distribution”)
      and
second,
      to pay
      to the Subordinate Certificates and the Residual Certificates in the same order
      and priority as provided in Section 5.01(a)(1)(ii), (iii) and (iv). In the
      event
      that the Senior Certificates related to a Loan Group constitute an
      Undercollateralized Group on any Distribution Date following the Senior Credit
      Support Depletion Date, Undercollateralization Distributions will be made from
      any Available Funds from the Loan Group not related to an Undercollateralized
      Group remaining after all required amounts have been distributed to the related
      Class of Senior Certificates related to such other Loan Group.
      Undercollateralization Distributions will be applied first
      to pay
      accrued but unpaid interest, if any, and second
      to pay
      principal in the same priority and allocation provided in Section
      5.01(a).

     

    
      
        
        

      

      
        115

        
          

        

      

      
        
        

      

    

     

    (e) The
      Securities Administrator shall make distributions in respect of a Distribution
      Date to each Certificateholder of record on the related Record Date (other
      than
      as provided in Section 10.01 hereof respecting the final distribution), in
      the
      case of Certificateholders of the Physical Certificates, by check or money
      order
      mailed to such Certificateholder at the address appearing in the Certificate
      Register, or by wire transfer. Distributions among Certificateholders of a
      Class
      shall be made in proportion to the Percentage Interests evidenced by the
      Certificates of that Class held by such Certificateholders.

     

    (f) Each
      distribution with respect to a Book-Entry Certificate shall be paid to the
      Depository, which shall credit the amount of such distribution to the accounts
      of its Depository Participants in accordance with its normal procedures. Each
      Depository Participant shall be responsible for disbursing such distribution
      to
      the Certificate Owners that it represents and to each indirect participating
      brokerage firm (a “brokerage firm” or “indirect participating firm”) for which
      it acts as agent. Each brokerage firm shall be responsible for disbursing funds
      to the Certificate Owners that it represents. All such credits and disbursements
      with respect to a Book-Entry Certificate are to be made by the Depository and
      the Depository Participants in accordance with the provisions of the
      Certificates. None of the Trustee, the Securities Administrator, the Depositor,
      the Master Servicer or the Seller shall have any responsibility
      therefor.

     

    (g) Distributions
      from Final Maturity Reserve Account.
      On the
      earlier of the Distribution Date in September 2026 and the termination of the
      Trust, the Securities Administrator shall distribute the funds on deposit in
      the
      Final Maturity Reserve Account on such date in the following order of
      priority:

     

    (i)to
      the
      Class 1A-1A, Class 1A-1B, Class 2A-1A, Class 2A-1B1, Class 2A-1B2, Class 2A-1B3
      and Class 2A-1C Certificates, pro
      rata,
      after
      giving effect to principal distributions on such Distribution Date pursuant
      to
      Sections 5.01(a)(1)(ii) or (iii) above, as applicable, in reduction of their
      respective Class Principal Balances, until the Class Principal Balance of each
      such Class has been reduced to zero;

     

    (ii)to
      the
      Certificate Insurer, any reimbursement amounts due to the Certificate Insurer
      in
      respect of principal;

     

    (iii)to
      the
      Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6 and M-7
      Certificates, sequentially, in that order, after giving effect to principal
      distributions on such Distribution Date pursuant to Sections 5.01(a)(1)(ii)
      or
      (iii) above, as applicable, in reduction of their respective Class Principal
      Balances, until the Class Principal Balance of each such class has been reduced
      to zero;

     

    
      
        
        

      

      
        116

        
          

        

      

      
        
        

      

    

     

    (iv)
      to
      the Class 1A-1A, Class 1A-1B, Class 2A-1A, Class 2A-1B1, Class 2A-1B2, Class
      2A-1B3 and Class 2A-1C Certificates, pro
      rata,
      any
      Interest Distributable Amounts for each such Class remaining unpaid on such
      Distribution Date, in the same priorities as set forth in Section 5.01(a)(1)(i);
      

     

    (v)
      to
      the Certificate Insurer, any reimbursement amounts due to the Certificate
      Insurer in respect of any Interest Distributable Amount;

     

    (vi)
      to
      the Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6 and Class
      M-7 Certificates, sequentially, in that order, any Interest Distributable
      Amounts for each such Class remaining unpaid on such Distribution Date;
      and

    

    (vii)
      to
      the extent of any funds remaining in the Final Maturity Reserve Account after
      payment pursuant to clauses (i) through (vi) above, to the Class C
      Certificates;

     

    SECTION
      5.02. Allocation of Net Deferred Interest.

     

    For
      any
      Distribution Date, the Net Deferred Interest on the Mortgage Loans will be
      allocated among the Classes of Certificates in proportion to the excess, if
      any,
      for each such Class of (i) the Monthly Interest Distributable Amount accrued
      at
      the Pass-Through Rate for such Class, over (ii) the amount of the Monthly
      Interest Distributable Amount for such Class and for such Distribution Date
      calculated at the related Adjusted Cap Rate for such Class. Any Net Deferred
      Interest that is not allocable to any Class of LIBOR Certificates pursuant
      to
      the preceding sentence shall be allocated to the Class C
      Certificates.

     

    On
      each
      Distribution Date, any amount of Net Deferred Interest allocable to a Class
      of
      Certificates on such Distribution Date will be added as Principal to the
      outstanding Class Principal Balance of such Class of Certificates. 

     

    SECTION
      5.03. Allocation of Realized Losses.

     

    (a) On
      or
      prior to each Distribution Date, the Securities Administrator shall aggregate
      the loan-level information provided by the Master Servicer with respect to
      the
      total amount of Realized Losses, if any, with respect to the Mortgage Loans
      in
      each Loan Group for the related Distribution Date and include such information
      in the Distribution Date Statement.

     

    (b) On
      each
      Distribution Date, Realized Losses that occurred during the related Prepayment
      Period shall be allocated as follows:

     

    first,
      to Net
      Monthly Excess Cashflow; 

     

    second,
      to
      the
      Overcollateralized Amount, until such amount has been reduced to zero;

     

    third,
      to
      the
      Subordinate Certificates in reverse order of their respective numerical Class
      designations (beginning with the Class of Subordinate Certificates with the
      highest numerical Class designation) until the Class Principal Balance of each
      such Class is reduced to zero; and

     

    
      
        
        

      

      
        117

        
          

        

      

      
        
        

      

    

     

    fourth,

     

    (A) with
      respect such losses related to Loan Group 1 Mortgage Loans, to the Class 1A-1A
      and Class 1A-1B Certificates until the Class Principal Balance of such Class
      is
      reduced to zero; and

     

    (B) with
      respect such losses related to Loan Group 2 Mortgage Loans, to the Class 2A-1A,
      Class 2A-1B1, Class 2A-1B2, Class 2A-1B3 and Class 2A-1C
      Certificates,
      pro
      rata,
      until
      the Class Principal Balance of such Class is reduced to zero; provided,
      however,
      that
      all losses allocable to the Class 2A-1A, Class 2A-1B1, Class 2A-1B2, Class
      2A-1B3 and Class 2A-1C Certificates will be allocated sequentially, first,
      to
      the Class 2A-1C Certificates; second, to the Class 2A-1B1, Class 2A-1B2 and
      Class 2A-1B3 Certificates, pro
      rata
      as a
      group; and third, to the Class 2A-1A Certificates, in that order, for so long
      as
      such certificates are outstanding.

     

    (c) The
      Class
      Principal Balance of first, the Class C Certificates and second, the Class
      of
      Certificates then outstanding with the highest numerical Class designation
      shall
      be reduced on each Distribution Date by the amount, if any, by which the
      aggregate of the Class Principal Balances of all outstanding Classes of
      Certificates (after giving effect to the distribution of principal and the
      allocation of Realized Losses on such Distribution Date) exceeds the aggregate
      of the Stated Principal Balances of all the Mortgage Loans for the following
      Distribution Date.

     

    (d) Any
      Realized Loss allocated to a Class of Certificates or any reduction in the
      Class
      Principal Balance of a Class of Certificates pursuant to Section 5.03(b) or
      (c)
      shall be allocated among the Certificates of such Class, pro rata, in proportion
      to their respective Certificate Principal Balances.

     

    (e) Any
      allocation of Realized Losses to a Certificate or any reduction in the
      Certificate Principal Balance of a Certificate pursuant to Section 5.03(b)
      or
      (c) shall be accomplished by reducing the Certificate Principal Balance thereof
      immediately following the distributions made on the related Distribution Date
      in
      accordance with the definition of “Certificate Principal Balance.”

     

    SECTION
      5.04. Statements. 

     

    (a) On
      each
      Distribution Date, the Securities Administrator shall make available to the
      Trustee, each Certificateholder, the Certificate Insurer, the Seller, any NIMS
      Insurer, the Master Servicer and each Rating Agency, a statement based, as
      applicable, on loan-level information obtained from the Master Servicer and
      the
      Servicer (the “Distribution
      Date Statement”)
      as to
      the distributions to be made or made, as applicable, on such Distribution Date.
      The Distribution Date Statement shall include the following information, in
      each
      case, with respect to such Distribution Date:

     

    
      
        
        

      

      
        118

        
          

        

      

      
        
        

      

    

     

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

     

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

     

    (iii) [Reserved];

     

    (iv) the
      aggregate amount of Servicing Fees, Master Servicing Fees and Credit Risk
      Manager’s Fees for the related Due Period;

     

    (v) the
      amount of Advances for each Loan Group and the aggregate amount of Advances
      for
      the related Due Period and the amount of unreimbursed Advances;

     

    (vi) the
      Loan
      Group Balance for each Loan Group and the Net WAC for each Loan Group at the
      Close of Business at the end of the related Due Period;

     

    (vii) the
      Pool
      Collateral Balance and the Loan Group Collateral Balance for such Distribution
      Date;

     

    (viii) for
      each
      Loan Group, the aggregate Principal Balance of the MTA Indexed Mortgage Loans
      at
      the Close of Business at the end of the related Due Period;

     

    (ix) for
      each
      Loan Group, the amount of fees, expenses or indemnification amounts paid by
      the
      Trust Fund with an identification of the general purpose of such amounts and
      the
      party receiving such amounts;

     

    (x) for
      each
      Loan Group, the number, weighted average remaining term to maturity, weighted
      average life and weighted average Loan Rate of the related Mortgage Loans as
      of
      the related Due Date;

     

    (xi) for
      each
      Loan Group, the number and aggregate unpaid principal balance of the related
      Mortgage Loans, (a) 30 to 59 days Delinquent, (b) 60 to 89 days Delinquent,
      (c) 90 or more days Delinquent, (d) as to which foreclosure proceedings have
      been commenced and (e) in bankruptcy, in each case as of the close of business
      on the last day of the preceding calendar month, using the MBA
      method;

     

    (xii) for
      each
      Loan Group, the book value (if available) 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 in each Loan Group as of the Close of Business
      of
      the last day of the preceding Due Period;

     

    (xiii) for
      each
      Loan Group, the aggregate amount of Principal Prepayments with respect to each
      Loan Group made during the related Prepayment Period;

     

    (xiv) for
      each
      Loan Group, the aggregate amount of Realized Losses incurred during the related
      Due Period for each Loan Group and the cumulative amount of Realized Losses
      and
      the amount of Realized Losses, if any, allocated to each Class of Certificates
      after giving effect to any distributions made thereon, on such Distribution
      Date;

     

    
      
        
        

      

      
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    (xv) the
      Class
      Principal Balance of each Class of Certificates and the Apportioned Principal
      Balances of the Subordinate Certificates after giving effect to any
      distributions made thereon, on such Distribution Date;

     

    (xvi) for
      each
      Loan Group, the Monthly Interest Distributable Amount and the Interest
      Distributable Amount in respect of each related Class of Certificates, for
      such
      Distribution Date and the respective portions thereof, if any, remaining unpaid
      following the distributions made in respect of such Certificates on such
      Distribution Date;

     

    (xvii) for
      each
      Loan Group, the aggregate amount of any Net Interest Shortfalls and the Unpaid
      Interest Shortfall Amount for such Distribution Date after giving effect to
      any
      distributions made thereon, on such Distribution Date;

     

    (xviii) for
      each
      Loan Group, the related Available Funds;

     

    (xix) for
      each
      Loan Group, the Pass-Through Rate and related Adjusted Cap Rate for each Class
      of Certificates for such Distribution Date; 

     

    (xx) for
      each
      Loan Group, the aggregate Principal Balance of Mortgage Loans purchased
      hereunder by the Seller during the related Due Period, and indicating the
      relevant section of the Mortgage Loan Purchase Agreement, or the Section of
      this
      Agreement, as applicable, requiring or allowing the purchase of each such
      Mortgage Loan;

     

    (xxi) for
      each
      Loan Group, the amount of any Principal Deficiency Amounts or Accrued Interest
      Amounts paid to an Undercollateralized Group or amounts paid pursuant to Section
      5.01(f)(i); 

     

    (xxii) the
      amount of any Basis Risk Shortfall and Unpaid Basis Risk Shortfall, if any,
      for
      each Class after giving effect to any distributions made thereon, on such
      Distribution Date;

     

    (xxiii) for
      each
      Loan Group, the amount of Deferred Interest and Net Deferred Interest, if any,
      for such Loan Group;

     

    (xxiv) the
      amount of the Certificate Insurer Reimbursement Amount, if any;

     

    (xxv) the
      Deficiency Amount, if any, to be paid by the Certificate Insurer; 

     

    (xxvi) the
      amount of Net Deferred Interest, if any, added to the Class Principal Balance
      of
      the Certificates

     

    (xxvii) the
      amount of any Unpaid Interest Shortfall Amount;

     

    (xxviii) the
      amount of any Final Maturity Reserve Amount deposited in the Final Maturity
      Reserve Account, and, on the earlier of (i) the Distribution Date in September
      2026 and (ii) the termination of the Trust, the amount distributed from the
      Final Maturity Reserve Account to each Class of Certificates;

     

    
      
        
        

      

      
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    (xxix) the
      Overcollateralized Amount for that Distribution Date;

     

    (xxx) the
      Overcollateralization Target Amount for that Distribution Date; 

     

    (xxxi) the
      amount of any Class P Distributable Amount; and

     

    (xxxii) the
      amount on deposit in the Prefunding Account in the aggregate and for each Loan
      Group (including a breakdown of amounts released during the prior calendar
      month
      in respect of Aggregate Subsequent Transfer Amounts or amounts included in
      Available Funds on the Distribution Date in the month following the end of
      the
      Prefunding Period).

     

    The
      Securities Administrator shall make the Distribution Date Statement (and, at
      its
      option, any additional files containing the same information in an alternative
      format) available each month to Certificateholders and the other parties to
      this
      Agreement via the Securities Administrator’s internet website. The Securities
      Administrator’s internet website shall initially be 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.

     

    In
      the
      case of information furnished pursuant to subclauses (i) and (ii) above, the
      amounts shall be expressed in a separate section of the report as a dollar
      amount for each Class for each $1,000 original dollar amount as of the Initial
      Cut-off Date.

     

    In
      addition to the information listed above, such Distribution Date Statement
      or
      the report on Form 10-D for such Distribution Date shall also include any other
      information required by Item 1121 (§ 229.1121) of Regulation AB.

     

    (b) Within
      a
      reasonable period of time after the end of each calendar year, the Securities
      Administrator shall, upon written request, furnish to any NIMS Insurer, the
      Certificate Insurer and each Person who at any time during the calendar year
      was
      a Certificateholder of a Regular Certificate, if requested in writing by such
      Person or any NIMS Insurer, such information as is reasonably necessary to
      provide to such Person or any NIMS Insurer a statement containing the
      information set forth in subclauses (i) and (ii) above, aggregated for such
      calendar year or applicable portion thereof during which such Person or any
      NIMS
      Insurer was a Certificateholder and such other customary information which
      a
      Certificateholder reasonably requests to prepare its tax returns. Such
      obligation of the Securities Administrator shall be deemed to have been
      satisfied to the extent that substantially comparable information shall be
      prepared and furnished by the Securities Administrator to Certificateholders
      pursuant to any requirements of the Code as are in force from time to
      time.

     

    
      
        
        

      

      
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    (c) On
      each
      Distribution Date, the Securities Administrator shall supply an electronic
      tape
      to Bloomberg Financial Markets, Inc. in a format acceptable to Bloomberg
      Financial Markets, Inc. on a monthly basis, and shall supply an electronic
      tape
      to Loan Performance and Intex Solutions in a format acceptable to Loan
      Performance and Intex Solutions on a monthly basis.

     

    SECTION
      5.05. Remittance Reports; Advances. 

     

    (a) No
      later
      than the second Business Day following each Determination Date, the Master
      Servicer shall deliver to the Securities Administrator by telecopy or electronic
      mail (or by such other means as the Master Servicer and the Securities
      Administrator may agree from time to time) the Remittance Report with respect
      to
      the related Distribution Date. Not later than the Close of Business New York
      time three Business Days prior to the related Distribution Date, the Master
      Servicer shall deliver or cause to be delivered to the Securities Administrator
      in addition to the information provided on the Remittance Report, such other
      loan-level information reasonably available to it with respect to the Mortgage
      Loans as the Securities Administrator may reasonably require to perform the
      calculations necessary to make the distributions contemplated by Section
      5.01. 

     

    (b) 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 Servicer was required to make an advance pursuant to the Servicing
      Agreement exceeds the amount deposited in the Distribution Account which will
      be
      used for an advance with respect to such Mortgage Loan, the Master Servicer
      will
      deposit in the Distribution Account not later than the Business Day immediately
      preceding the related Distribution Date an amount equal to such deficiency,
      net
      of the Servicing Fee and the Master Servicing Fee, for such Mortgage Loan except
      to the extent the Master Servicer determines any such Advance to be
      Nonrecoverable from Liquidation Proceeds, Insurance Proceeds or future payments
      on the Mortgage Loan for which such Advance was made. Subject to the foregoing,
      the Master Servicer shall continue to make such Advances through the date that
      the Servicer is required to do so under its Servicing Agreement. If the Master
      Servicer determines that an Advance is Nonrecoverable, it shall, on or prior
      to
      the related Distribution Date, present an Officer’s Certificate to the
      Securities Administrator and the Trustee (i) stating that the Master Servicer
      elects not to make a Advance in a stated amount and (ii) detailing the reason
      it
      deems the advance to be Nonrecoverable.

     

    SECTION
      5.06. Compensating Interest Payments.

     

    The
      amount of the Master Servicing Fee payable to the Master Servicer in respect
      of
      any Distribution Date shall be reduced (but not below zero) by the amount of
      any
      Compensating Interest Payment for such Distribution Date, but only to the extent
      that Interest Shortfalls relating to such Distribution Date are required to
      be
      paid but are not actually paid by the Servicer on the applicable Servicer
      Remittance Date. Such amount shall not be treated as an Advance and shall not
      be
      reimbursable to the Master Servicer.

     

    
      
        
        

      

      
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    SECTION
      5.07. Basis Risk Reserve Fund.

     

    (a) On
      the
      Closing Date, the Securities Administrator shall establish and maintain a Basis
      Risk Reserve Fund entitled “Basis Risk Reserve Fund, Wells Fargo Bank, N.A., as
      Securities Administrator, on behalf of Deutsche Bank National Trust Company,
      as
      Trustee, in trust for the registered Holders of DSLA Mortgage Loan Trust,
      Mortgage Loan Pass-Through Certificates, Series 2006-AR2.” The Basis Risk
      Reserve Fund shall be an Eligible Account, and funds on deposit therein shall
      be
      held separate and apart from, and shall not be commingled with, any other
      moneys, including, without limitation, other moneys of the Securities
      Administrator held pursuant to this Agreement. The Basis Risk Reserve Fund
      shall
      not be an asset of any REMIC established hereby.

     

    (b) On
      each
      Distribution Date, other than the Distribution Date following the optional
      purchase of the Mortgage Loans pursuant to Section 10.01, Net Monthly Excess
      Cashflow shall be deposited in the Basis Risk Reserve Fund to the extent of
      the
      Required Reserve Fund Deposit pursuant to Section
      5.01(a)(1)(iv)(Q).

     

    (c) On
      any
      Distribution Date for which a Basis Risk Shortfall exists with respect to the
      Class 1A-1A, Class 1A-1B, Class 2A-1A, Class 2A-1B1, Class 2A-1B2, Class 2A-1B3,
      Class 2A-1C, Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6
      and Class M-7 Certificates, the Securities Administrator, as Paying Agent for
      the Trustee, shall withdraw from the Basis Risk Reserve Fund, the amount of
      any
      such remaining Basis Risk Shortfall for distribution on such Distribution Date
      to the Class 1A-1A, Class 1A-1B, Class 2A-1A, Class 2A-1B1, Class 2A-1B2, Class
      2A-1B3 and Class 2A-1C any related Basis Risk Shortfall for such Distribution
      Date on a pro
      rata
      basis,
      based on the respective amounts of Basis Risk Shortfalls for such Distribution
      Date and then sequentially to the Class M-1, Class M-2, Class M-3, Class M-4,
      Class M-5, Class M-6 and Class M-7 Certificates in that order up to the amount
      of Basis Risk Shortfalls due each such Class for such Distribution
      Date.

     

    (d) Funds
      in
      the Basis Risk Reserve Fund shall be invested in Permitted Investments. Any
      earnings on amounts in the Basis Risk Reserve Fund shall be for the benefit
      of
      the Class C Certificateholders. The Class C Certificates shall evidence
      ownership of the Basis Risk Reserve Fund for federal income tax purposes and
      the
      Holders thereof shall direct the Securities Administrator, in writing, as to
      investment of amounts on deposit therein. The Class C Certificateholder(s)
      shall
      be liable for any losses incurred on such investments. In the absence of written
      instructions from the Class C Certificateholder as to investment of funds on
      deposit in the Basis Risk Reserve Fund, such funds shall be invested in the
      Wells Fargo Advantage Prime Investment Money Market Fund. For all Federal income
      tax purposes, amounts transferred by the Upper-Tier REMIC to the Basis Risk
      Reserve Fund shall be treated as amounts distributed by the Upper-Tier REMIC
      to
      the Class C Certificateholders.

     

    (e) Upon
      termination of the Trust Fund any amounts remaining in the Basis Risk Reserve
      Fund shall be distributed to the Class C Certificateholders.

     

    
      
        
        

      

      
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    SECTION
      5.08. Recoveries. 

     

    (a) With
      respect to any Class of Certificates to which a Realized Loss has been allocated
      (including any such Class for which the related Class Principal Balance has
      been
      reduced to zero), to the Class Principal Balance of such Class will be increased
      by the amount of a Recovery collected with regard to the related Loan Group
      allocated to such Class for such Distribution Date as follows:

     

    (i) first,
      the Class Principal Balance of each Class of Senior Certificates related to
      the
      Loan Group from which the Recovery was collected, will be increased,
pro
      rata
      based on
      Realized Losses allocated to such Class, up to the amount by which Net Realized
      Losses previously allocated to each such Class exceeds the amount of Recoveries
      for such Distribution Date previously distributed to such Class,
      and

     

    (ii) second,
      the Class Principal Balance of each Class of Subordinate Certificates will
      be
      increased in order of seniority, up to the amount by which Net Realized Losses
      previously allocated to each such Class exceeds the amount of Recoveries for
      such Distribution Date previously distributed to such Class.

     

    (b) To
      the
      extent that the Certificate Insurer has made a payment in respect of Realized
      Losses and such amount has not previously been reimbursed pursuant to Section
      5.01(a)(1)(i)(C), 5.01(a)(1)(ii)(B), 5.01(a)(1)(iii)(B) or 5.01(a)(1)(iv)(B),
      the Certificate Insurer will be subrogated to the rights of the Holders of
      the
      Insured Certificates and will be entitled to the amount of any such Realized
      Losses paid by it to the Insured Certificates that remains unreimbursed prior
      to
      any Recoveries being allocated to the Holders of the Insured
      Certificates.

     

    SECTION
      5.09. The Final Maturity Reserve Trust.

     

    (a) The
      Final
      Maturity Reserve Trust is hereby established as a separate trust, the corpus
      of
      which shall be held by the Securities Administrator and entitled “Final Maturity
      Reserve Trust, Wells Fargo Bank, N.A., as Securities Administrator, on behalf
      of
      Deutsche Bank National Trust Company, as Trustee, in trust for the registered
      Holders of DSLA Mortgage Loan Trust, Mortgage Loan Pass-Through Certificates,
      Series 2006-AR2.” The Securities Administrator shall establish an account (the
“Final Maturity Reserve Account”). The Final Maturity Reserve Account shall be
      an Eligible Account, and funds on deposit therein shall be held separate and
      apart from, and shall not be commingled with, any other moneys, including,
      without limitation, other moneys of the Securities Administrator held pursuant
      to this Agreement. Notwithstanding anything herein to the contrary, the
      Securities Administrator will only establish the Final Maturity Reserve Account
      if there is any Final Maturity Reserve Amount to be deposited therein.

     

    (b) The
      Securities Administrator shall deposit into the Final Maturity Reserve Account
      any Final Maturity Reserve Amounts pursuant to Section 5.01(a)(1)(i)(A). The
      Securities Administrator shall distribute the funds in the Final Maturity
      Reserve Account pursuant to Section 5.01(g).

     

    
      
        
        

      

      
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    (c) Funds
      in
      the Final Maturity Reserve Account shall be invested in Permitted Investments
      at
      the written direction of the Holders of the Class C Certificates. Any earnings
      on such amounts shall be distributed pursuant to Section 5.01(g). The Class
      C
      Certificates shall evidence ownership of the Final Maturity Reserve Trust for
      federal income tax purposes and the Holder thereof shall direct the Securities
      Administrator, in writing, as to investment of amounts on deposit therein.
      The
      Class C Certificateholders shall be liable for any losses incurred on such
      investments. In the absence of written instructions from the Class C
      Certificateholders as to investment of funds on deposit in the Final Maturity
      Reserve Account, such funds shall be invested in the Wells Fargo Advantage
      Prime
      Investment Money Market Fund or comparable investment vehicle.

     

    (d) Upon
      termination of the Trust, any amounts remaining in the Final Maturity Reserve
      Account shall be distributed pursuant to the priorities in Section
      5.01(g).

     

    (e) For
      federal income tax purposes, any Certificateholder that receives a principal
      payment from the Final Maturity Reserve Trust shall be treated as selling a
      portion of its Certificate to the Class C Certificateholder and as having
      received the amount of the principal payment from the Class C Certificateholder
      as the proceeds of the sale. The portion of the Certificate that is treated
      as
      having been sold shall equal the amount of the corresponding reduction in the
      Class Principal Balance of such Certificate. Principal payments received from
      the Final Maturity Reserve Trust shall not be treated as distributions from
      any
      REMIC created hereby. All principal distributions from the Final Maturity
      Reserve Account shall be accounted for hereunder in accordance with this Section
      5.09(f).

     

    ARTICLE
      VI

     

    THE
      CERTIFICATES

     

    SECTION
      6.01. The Certificates.

     

    The
      Certificates shall be substantially in the form annexed hereto as Exhibit A
      through D. Each of the Certificates shall, on original issue, be executed by
      the
      Securities Administrator and authenticated and delivered by the Certificate
      Registrar upon the written order of the Depositor concurrently with the sale
      and
      assignment to the Trustee of the Trust Fund. Each Class of the Regular
      Certificates shall be initially evidenced by one or more Certificates
      representing a Percentage Interest with a minimum dollar denomination of $25,000
      and integral dollar multiples of $1 in excess thereof, in the case of the Class
      1A-1A, Class 1A-1B, Class 2A-1A, Class 2A-1B1, Class 2A-1B2, Class 2A-1B3,
      Class
      2A-1C, Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6 and
      Class M-7 Certificates; provided,
      however,
      that
      the Offered Certificates shall only be sold to initial investors in minimum
      total investment amounts of $100,000. The Class C, Class P and Class R
      Certificates are issuable only in a Percentage Interest of 100%.

     

    The
      Certificates shall be executed on behalf of the Trust by manual or facsimile
      signature on behalf of the Securities Administrator by a Responsible 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 Trustee shall be binding, notwithstanding that such individuals or any
      of
      them have ceased to be so authorized prior to the authentication and delivery
      of
      such Certificates or did not hold such offices at the date of such Certificate.
      Each Certificate shall, on original issue, be authenticated by the Certificate
      Registrar upon the order of the Depositor. No Certificate shall be entitled
      to
      any benefit under this Agreement or be valid for any purpose, unless such
      Certificate shall have been manually authenticated by the Certificate Registrar
      substantially in the form provided for herein, and such 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. At any time and
      from time to time after the execution and delivery of this Agreement, the
      Depositor may deliver Certificates executed by the Trustee to the Certificate
      Registrar for authentication and the Certificate Registrar shall authenticate
      and deliver such Certificates as provided in this Agreement and not otherwise.
      Subject to Section 6.02(c), the Senior Certificates (other than the Residual
      Certificate) and the Subordinate Certificates shall be Book-Entry Certificates.
      

     

    
      
        
        

      

      
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    The
      Private Certificates shall be offered and sold in reliance either on (i) the
      exemption from registration under Rule 144A of the 1933 Act and shall be issued
      initially in the form of one or more permanent global Certificates in
      definitive, fully registered form with the applicable legends set forth in
      Exhibits C-1, C-2 or C-3 hereto, as applicable, (each, a “Restricted
      Global Security”)
      or
      (ii) Regulation S and shall be issued initially in the form of one or more
      permanent global Certificates in definitive, fully registered form without
      interest coupons with the applicable legends set forth in Exhibits C-1, C-2
      or
      C-3 hereto, as applicable, (each, a “Regulation
      S Global Security”),
      which
      shall be deposited on behalf of the subscribers for such Certificates
      represented thereby with the Trustee, as custodian for DTC and registered in
      the
      name of a nominee of DTC, duly executed by the Securities Administrator and
      authenticated by the Certificate Registrar as hereinafter provided. The
      aggregate principal amounts of the Restricted Global Securities or Regulation
      S
      Global Securities, as applicable, may from time to time be increased or
      decreased by adjustments made on the records of the Certificate Registrar and
      DTC or its nominee, as the case may be, as hereinafter provided.

     

    SECTION
      6.02. Registration of Transfer and Exchange of Certificates. 

     

    (a) The
      Certificate Registrar shall cause to be kept a Certificate Register in which,
      subject to such reasonable regulations as it may prescribe, the Certificate
      Registrar shall provide for the registration of Certificates and of transfers
      and exchanges of Certificates as herein provided. The Securities Administrator
      is hereby appointed, and the Securities Administrator hereby accepts its
      appointment as, initial Certificate Registrar on behalf of the Trustee, for
      the
      purpose of registering Certificates and transfers and exchanges of Certificates
      as herein provided.

     

    Upon
      surrender for registration of transfer of any Certificate at the Corporate
      Trust
      Office of the Certificate Registrar maintained for such purpose pursuant to
      the
      foregoing paragraph, the Securities Administrator on behalf of the Trust shall
      execute, and the Certificate Registrar shall authenticate and deliver, in the
      name of the designated transferee or transferees, one or more new Certificates
      of the same aggregate Percentage Interest.

     

    
      
        
        

      

      
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    At
      the
      option of the Certificateholders, Certificates may be exchanged for other
      Certificates in authorized denominations and the same aggregate Percentage
      Interests, upon surrender of the Certificates to be exchanged at any such office
      or agency. Whenever any Certificates are so surrendered for exchange, the
      Securities Administrator shall execute on behalf of the Trust, and the
      Certificate Registrar shall authenticate and deliver the Certificates which
      the
      Certificateholder making the exchange is entitled to receive. Every Certificate
      presented or surrendered for registration of transfer or exchange shall (if
      so
      required by the Certificate Registrar) be duly endorsed by, or be accompanied
      by
      a written instrument of transfer satisfactory to the Certificate Registrar
      duly
      executed by, the Holder thereof or his attorney duly authorized in
      writing.

     

    (b) Except
      as
      provided in paragraph (c) or (d) below, the Book-Entry Certificates shall at
      all
      times remain registered in the name of the Depository or its nominee and at
      all
      times: (i) registration of such Certificates may not be transferred by the
      Securities Administrator or the Certificate Registrar except to another
      Depository; (ii) the Depository shall maintain book-entry records with respect
      to the Certificate Owners and with respect to ownership and transfers of such
      Certificates; (iii) ownership and transfers of registration of such Certificates
      on the books of the Depository shall be governed by applicable rules established
      by the Depository; (iv) the Depository may collect its usual and customary
      fees,
      charges and expenses from its Depository Participants; (v) the Certificate
      Registrar, any NIMS Insurer, the Paying Agent and the Trustee shall for all
      purposes deal with the Depository as representative of the Certificate Owners
      of
      such Certificates for purposes of exercising the rights of Holders under this
      Agreement, and requests and directions for and votes of such representative
      shall not be deemed to be inconsistent if they are made with respect to
      different Certificate Owners; (vi) the Trustee, the Paying Agent and the
      Certificate Registrar may rely and shall be fully protected in relying upon
      information furnished by the Depository with respect to its Depository
      Participants and furnished by the Depository Participants with respect to
      indirect participating firms and Persons shown on the books of such indirect
      participating firms as direct or indirect Certificate Owners; and (vii) the
      direct participants of the Depository shall have no rights under this Agreement
      under or with respect to any of the Certificates held on their behalf by the
      Depository, and the Depository may be treated by the Trustee, the Paying Agent,
      the Certificate Registrar and their respective agents, employees, officers
      and
      directors as the absolute owner of the Certificates for all purposes
      whatsoever.

     

    All
      transfers by Certificate Owners of Book-Entry Certificates shall be made in
      accordance with the procedures established by the Depository Participant or
      brokerage firm representing such Certificate Owners. Each Depository Participant
      shall only transfer Book-Entry Certificates of Certificate Owners that it
      represents or of brokerage firms for which it acts as agent in accordance with
      the Depository’s normal procedures. The parties hereto are hereby authorized to
      execute one or more Letter of Representations with the Depository or take such
      other action as may be necessary or desirable to register a Book-Entry
      Certificate to the Depository. In the event of any conflict between the terms
      of
      any such Letter of Representation and this Agreement, the terms of this
      Agreement shall control.

     

    (c) If
      (x)
      the Depository or the Depositor advises the Certificate Registrar in writing
      that the Depository is no longer willing or able to discharge properly its
      responsibilities as Depository and (y) the Certificate Registrar or the
      Depositor is unable to locate a qualified successor, upon surrender to the
      Certificate Registrar of the Book-Entry Certificates by the Depository,
      accompanied by registration instructions from the Depository for registration,
      the Securities Administrator shall at the Seller’s expense execute on behalf of
      the Trust and authenticate definitive, fully registered certificates (the
“Definitive
      Certificates”).
      Neither the Depositor nor the Certificate Registrar shall be liable for any
      delay in delivery of such instructions and may conclusively rely on, and shall
      be protected in relying on, such instructions. Upon the issuance of Definitive
      Certificates, the Trustee shall notify any NIMS Insurer of the availability
      of
      Definitive Certificates and the Trustee, the Certificate Registrar, the Paying
      Agent and the Depositor shall recognize the Holders of the Definitive
      Certificates as Certificateholders hereunder.

     

    
      
        
        

      

      
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    (d) No
      transfer, sale, pledge or other disposition of any Private Certificate, other
      than a Private Certificate sold in an offshore transaction in reliance on
      Regulation S, shall be made unless such disposition is exempt from the
      registration requirements of the 1933 Act, and any applicable state securities
      laws or is made in accordance with the 1933 Act and laws. Any Private
      Certificates sold to an “accredited investor” under Rule 501(a)(1), (2), (3) or
      (7) under the 1933 Act shall be issued only in the form of one or more
      Definitive Certificates and the records of the Certificate Registrar and DTC
      or
      its nominee shall be adjusted to reflect the transfer of such Definitive
      Certificates. In the event of any transfer of any Private Certificate in the
      form of a Definitive Certificate, (i) the transferee shall certify (A) such
      transfer is made to a Qualified Institutional Buyer in reliance upon Rule 144A
      (as evidenced by an investment letter delivered to the Certificate Registrar,
      in
      substantially the form attached hereto as Exhibit J-2) under the 1933 Act,
      or
      (B) such transfer is made to an “accredited investor” under Rule 501(c)(1), (2),
      (3) or (7) under the 1933 Act (as evidenced by an investment letter delivered
      to
      the Certificate Registrar, in substantially the form attached hereto as Exhibit
      J-1, and, if so required by the Certificate Registrar and the Depositor, a
      written Opinion of Counsel (which may be in-house counsel) acceptable to and
      in
      form and substance reasonably satisfactory to the Certificate Registrar and
      the
      Depositor, delivered to the Certificate Registrar and the Depositor stating
      that
      such transfer may be made pursuant to an exemption, including a description
      of
      the applicable exemption and the basis therefor, from the 1933 Act or is being
      made pursuant to the 1933 Act, which Opinion of Counsel shall not be an expense
      of the Trust, the Trustee, the Certificate Registrar, the Master Servicer,
      the
      Securities Administrator or the Depositor) or (ii) the Certificate Registrar
      shall require the transferor to execute a transferor certificate and the
      transferee to execute an investment letter acceptable to and in form and
      substance reasonably satisfactory to the Depositor and the Certificate Registrar
      certifying to the Depositor and the Certificate Registrar the facts surrounding
      such transfer, which investment letter shall not be an expense of the Trust,
      the
      Trustee, the Certificate Registrar, the Master Servicer, the Securities
      Administrator or the Depositor. Each Holder of a Private Certificate desiring
      to
      effect such transfer shall, and does hereby agree to, indemnify the Trustee,
      the
      Certificate Registrar, the Securities Administrator, the Seller 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.

     

    In
      the
      case of a Private Certificate that is a Book-Entry Certificate, for purposes
      of
      the preceding paragraph, the representations set forth in the investment letter
      in clause (i) shall be deemed to have been made to the Certificate Registrar
      by
      the transferee’s acceptance of such Private Certificate that is also a
      Book-Entry Certificate (or the acceptance by a Certificate Owner of the
      beneficial interest in such Certificate).

     

    
      
        
        

      

      
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    None
      of
      the Depositor, the Seller, the Securities Administrator, the Certificate
      Registrar or the Trustee is obligated to register or qualify the Private
      Certificates under the 1933 Act or any other securities laws or to take any
      action not otherwise required under this Agreement to permit the transfer of
      such Certificates without registration or qualification. Any Certificateholder
      desiring to effect the transfer of a Private Certificate shall, and does hereby
      agree to, indemnify the Trustee, the Seller, the Securities Administrator,
      the
      Depositor and the Certificate Registrar 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 in the form of a Definitive
      Certificate shall be made unless the Certificate Registrar shall have received
      either (i) a representation from the transferee of such Certificate, acceptable
      to and in form and substance satisfactory to the Certificate Registrar and
      the
      Depositor (such requirement is satisfied only by the Certificate Registrar’s
      receipt of a representation letter from the transferee substantially in the
      form
      of Exhibit I-1 or I-2, as applicable, hereto), to the effect that such
      transferee is not an employee benefit plan subject to Section 406 of ERISA
      or a
      plan or arrangement subject to Section 4975 of the Code, nor a person acting
      on
      behalf of any such plan or arrangement nor using the assets of any such plan
      or
      arrangement to effect such transfer or (ii) if such Certificate has been the
      subject of an ERISA-Qualifying Underwriting, and the purchaser is an insurance
      company, a representation that the purchaser is an insurance company which
      is
      purchasing such Certificates with funds contained in an “insurance company
      general account” (as such term is defined in Section V(e) of Prohibited
      Transaction Class Exemption 95-60 (“PTCE
      95-60”)
      and
      that the purchase and holding of such Certificates are covered under Sections
      I
      and III of PTCE 95-60 or (iii) an Opinion of Counsel satisfactory to the
      Certificate Registrar, which Opinion of Counsel shall not be an expense of
      the
      Trustee, the Certificate Registrar, the Master Servicer, the Securities
      Administrator, any NIMS Insurer, the Depositor or the Trust, addressed to the
      Certificate Registrar, to the effect that the purchase and holding of such
      ERISA-Restricted Certificate in the form of a Definitive Certificate will not
      result in a non-exempt prohibited transaction under Section 406 of ERISA or
      Section 4975 of the Code and will not subject the Trustee, the Certificate
      Registrar, any NIMS Insurer, the Master Servicer, the Servicer, the Securities
      Administrator or the Depositor to any obligation in addition to those expressly
      undertaken in this Agreement or to any liability. Notwithstanding anything
      else
      to the contrary herein, any purported transfer of an ERISA-Restricted
      Certificate in the form of a Definitive Certificate to an employee benefit
      plan
      subject to ERISA or Section 4975 of the Code without the delivery to the
      Certificate Registrar of an Opinion of Counsel satisfactory to the Certificate
      Registrar as described above shall be void and of no effect. 

     

    In
      the
      case of an ERISA-Restricted Certificate that is a Book-Entry Certificate, for
      purposes of clauses (i) or (ii) of the first sentence of the preceding
      paragraph, such representations shall be deemed to have been made to the
      Certificate Registrar by the transferee’s acceptance of such ERISA-Restricted
      Certificate that is also a Book-Entry Certificate (or the acceptance by a
      Certificate Owner of the beneficial interest in such Certificate).

     

    No
      transfer of an ERISA-Restricted Trust Certificate prior to the termination
      of
      the Final Maturity Reserve Trust shall be made unless the Certificate Registrar
      shall have received a representation letter from the transferee of such
      Certificate, substantially in the form set forth in Exhibit I-2, to the effect
      that either (i) such transferee is neither a Plan nor a Person acting on behalf
      of any such Plan or using the assets of any such Plan to effect such transfer
      or
      (ii) the acquisition and holding of the ERISA-Restricted Trust Certificate
      are
      eligible for exemptive relief under Prohibited Transaction Class Exemption
      (“PTCE”) 84-14, PTCE 90-1, PTCE 91-38, PTCE 95-60 or PTCE 96-23. Notwithstanding
      anything else to the contrary herein, any purported transfer of an
      ERISA-Restricted Trust Certificate prior to the termination of the Final
      Maturity Reserve Trust to or on behalf of a Plan without the delivery to the
      Certificate Registrar of a representation letter as described above shall be
      void and of no effect. If the ERISA-Restricted Trust Certificate is a Book-Entry
      Certificate, the transferee will be deemed to have made a representation as
      provided in clause (i) or (ii) of this paragraph, as applicable.

     

    
      
        
        

      

      
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    If
      any
      ERISA-Restricted Trust Certificate, or any interest therein, is acquired or
      held
      in violation of the provisions of the preceding paragraph, the next preceding
      permitted beneficial owner will be treated as the beneficial owner of that
      Certificate, retroactive to the date of transfer to the purported beneficial
      owner. Any purported beneficial owner whose acquisition or holding of an
      ERISA-Restricted Trust Certificate, or interest therein, was effected in
      violation of the provisions of the preceding paragraph shall indemnify to the
      extent permitted by law and hold harmless the Depositor and the Certificate
      Registrar from and against any and all liabilities, claims, costs or expenses
      incurred by such parties as a result of such acquisition or
      holding.

     

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

     

    To
      the
      extent permitted under applicable law (including, but not limited to, ERISA),
      none of the Trustee, the Certificate Registrar or the Depositor shall have
      any
      liability to any Person for any registration of transfer of any ERISA-Restricted
      Certificate that is in fact not permitted by this Section 6.02(d) or for the
      Paying Agent 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 Certificate
      Registrar in accordance with the foregoing requirements. In addition, none
      of
      the Trustee, the Certificate Registrar or the Depositor shall be required to
      monitor, determine or inquire as to compliance with the transfer restrictions
      with respect to any ERISA-Restricted Certificate in the form of a Book-Entry
      Certificate, and none of the Trustee, the Certificate Registrar or the Depositor
      shall have any liability for transfers of Book-Entry Certificates or any
      interests therein made in violation of the restrictions on transfer described
      in
      the Prospectus Supplement and this Agreement.

     

    (e) Each
      Person who has or who acquires any Ownership Interest in a Residual Certificate
      shall be deemed by the acceptance or acquisition of such Ownership Interest
      to
      have agreed to be bound by the following provisions and to have irrevocably
      appointed the Depositor or its designee as its attorney-in-fact to negotiate
      the
      terms of any mandatory sale under clause (v) below and to execute all
      instruments of transfer and to do all other things necessary in connection
      with
      any such sale, and the rights of each Person acquiring any Ownership Interest
      in
      Residual Certificate are expressly subject to the following
      provisions:

     

    
      
        
        

      

      
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    (i) Each
      Person holding or acquiring any Ownership Interest in a Residual Certificate
      shall be a Permitted Transferee who acquires such Ownership Interest in a
      Residual Certificate for its own account and not in the capacity as trustee,
      nominee or agent for another Person and shall promptly notify the Certificate
      Registrar and the Trustee of any change or impending change in its status as
      such a Permitted Transferee.

     

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

     

    (iii) In
      connection with any proposed transfer of any Ownership Interest in a Residual
      Certificate, the Trustee and the Certificate Registrar shall as a condition
      to
      registration of the transfer, require delivery to them of a Transferor
      Certificate in the form of Exhibit K hereto from the proposed transferor to
      the
      effect that the transferor (a) has no knowledge the proposed Transferee is
      not a
      Permitted Transferee acquiring an Ownership Interest in such Residual
      Certificate for its own account and not in a capacity as trustee, nominee,
      or
      agent for another Person, and (b) has not undertaken the proposed transfer
      in
      whole or in part to impede the assessment or collection of tax.

     

    (iv) Any
      attempted or purported Transfer of any Ownership Interest in the Residual
      Certificate in violation of the provisions of this Section shall be absolutely
      null and void and shall vest no rights in the purported transferee. If any
      purported transferee shall, in violation of the provisions of this Section,
      become a Holder of such Residual Certificate, then the prior Holder of such
      Residual Certificate that is a Permitted Transferee shall, upon discovery that
      the registration of Transfer of such Residual Certificate was not in fact
      permitted by this Section, be restored to all rights as Holder thereof
      retroactive to the date of registration of transfer of such Residual
      Certificate. None of the Trustee, the Certificate Registrar or the Depositor
      shall have any liability to any Person for any registration of Transfer of
      a
      Residual Certificate that is in fact not permitted by this Section or for the
      Paying Agent making any distributions due on the Residual Certificate to the
      Holder thereof or taking any other action with respect to such Holder win the
      provisions of this Agreement so long as the Trustee and the Certificate
      Registrar received the documents specified in clause (iii). The Certificate
      Registrar shall be entitled to recover from any Holder of such Residual
      Certificate that was in fact not a Permitted Transferee at the time such
      distributions were made all distributions made on such Residual Certificate.
      Any
      such distributions so recovered by the Certificate Registrar shall be
      distributed and delivered by the Certificate Registrar to the last Holder of
      such Residual Certificate that is a Permitted Transferee.

     

    (v) If
      any
      Person other than a Permitted Transferee acquires any Ownership Interest in
      the
      Residual Certificate in violation of the restrictions in this Section, then
      the
      Certificate Registrar shall have the right but not the obligation, without
      notice to the Holder of such Residual Certificate or any other Person having
      an
      Ownership Interest therein, to notify the Depositor to arrange for the sale
      of
      such Residual Certificate. The proceeds of such sale, net of commissions (which
      may include commissions payable to the Depositor or its affiliates in connection
      with such sale), expenses and taxes due, if any, will be remitted by the
      Certificate Registrar to the previous Holder of such Residual Certificate that
      is a Permitted Transferee, except that in the event that the Certificate
      Registrar determines that the Holder of such Residual Certificate may be liable
      for any amount due under this Section or any other provisions of this Agreement,
      the Certificate Registrar may withhold a corresponding amount from such
      remittance as security for such claim. The terms and conditions of any sale
      under this clause (v) shall be determined in the sole discretion of the Trustee
      and the Certificate Registrar and they shall not be liable to any Person having
      an Ownership Interest in such Residual Certificate as a result of its exercise
      of such discretion.

     

    
      
        
        

      

      
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    (vi) If
      any
      Person other than a Permitted Transferee acquires any Ownership Interest in
      the
      Residual Certificate in violation of the restrictions in this Section, then
      the
      Securities Administrator upon receipt of reasonable compensation will provide
      to
      the Internal Revenue Service, and to the persons specified in Sections
      860E(e)(3) and (6) of the Code, information needed to compute the tax imposed
      under Section 860E(e)(5) of the Code on transfers of residual interests to
      disqualified organizations.

     

    The
      foregoing provisions of this Section shall cease to apply to transfers occurring
      on or after the date on which there shall have been delivered to the Certificate
      Registrar and the Servicer, in form and substance satisfactory to the
      Certificate Registrar, (i) written notification from each Rating Agency that
      the
      removal of the restrictions on Transfer set forth in this Section will not
      cause
      such Rating Agency to downgrade its ratings of the Certificates (determined
      in
      the case of the Insured Certificates, without giving effect to the Certificate
      Insurance Policy) and (ii) an Opinion of Counsel to the effect that such removal
      will not cause the REMIC created hereunder to fail to qualify as a
      REMIC.

     

    (f) Notwithstanding
      any provision to the contrary herein, so long as a Restricted Global Security
      or
      Regulation S Global Security, as applicable, representing the Certificates
      remains outstanding and is held by or on behalf of the Depository, transfers
      of
      a Restricted Global Security or Regulation S Global Security, as applicable,
      representing the Certificates, in whole or in part, shall only be made in
      accordance with Section 6.01 and this Section 6.02(f).

     

    (i) Subject
      to clauses (ii) and (iii) of this Section 6.02(f), transfers of a Restricted
      Global Security or Regulation S Global Security, as applicable, representing
      the
      Certificates shall be limited to transfers of such a Restricted Global Security
      or Regulation S Global Security, as applicable, in whole, but not in part,
      to
      nominees of the Depository or to a successor of the Depository or such
      successor’s nominee.

     

    (ii) Restricted
      Global Security to Regulation S Global Security.
      If a
      holder of a beneficial interest in a Restricted Global Security deposited with
      or on behalf of the Depository wishes at any time to exchange its interest
      in
      such Restricted Global Security for an interest in a Regulation S Global
      Security, or to transfer its interest in such Restricted Global Security to
      a
      Person who wishes to take delivery thereof in the form of an interest in a
      Regulation S Global Security, such holder, provided such holder is not a U.S.
      Person, may, subject to the rules and procedures of the Depository, exchange
      or
      cause the exchange of such interest for an equivalent beneficial interest in
      the
      Regulation S Global Security. Upon receipt by the Certificate Registrar of
      (A)
      instructions from the Depository directing the Certificate Registrar to cause
      to
      be credited a beneficial interest in a Regulation S Global Security in an amount
      equal to the beneficial interest in such Restricted Global Security to be
      exchanged but not less than the minimum denomination applicable to such
      Certificateholders’ held through a Regulation S Global Security, (B) a written
      order given in accordance with the Depository’s procedures containing
      information regarding the participant account of the Depository and, in the
      case
      of a transfer pursuant to and in accordance with Regulation S, the Euroclear
      or
      Clearstream account to be credited with such increase and (C) a certificate
      in
      the form of Exhibit J-1 hereto given by the holder of such beneficial interest
      stating that the exchange or transfer of such interest has been made in
      compliance with the transfer restrictions applicable to the Global Securities,
      including that the holder is not a U.S. Person and pursuant to and in accordance
      with Regulation S, the Certificate Registrar shall reduce the principal amount
      of the Restricted Global Security and increase the principal amount of the
      Regulation S Global Security by the aggregate principal amount of the beneficial
      interest in the Restricted Global Security to be exchanged, and shall instruct
      Euroclear or Clearstream, as applicable, concurrently with such reduction,
      to
      credit or cause to be credited to the account of the Person specified in such
      instructions a beneficial interest in the Regulation S Global Security equal
      to
      the reduction in the principal amount of the Restricted Global
      Security.

     

    
      
        
        

      

      
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    (iii) Regulation
      S Global Security to Restricted Global Security.
      If a
      holder of a beneficial interest in a Regulation S Global Security deposited
      with
      or on behalf of the Depository wishes at any time to transfer its interest
      in
      such Regulation S Global Security to a Person who wishes to take delivery
      thereof in the form of an interest in a Restricted Global Security, such holder
      may, subject to the rules and procedures of the Depository, exchange or cause
      the exchange of such interest for an equivalent beneficial interest in a
      Restricted Global Security. Upon receipt by the Certificate Registrar of (A)
      instructions from the Depository directing the Certificate Registrar to cause
      to
      be credited a beneficial interest in a Restricted Global Security in an amount
      equal to the beneficial interest in such Regulation S Global Security to be
      exchanged but not less than the minimum denomination applicable to such
      Certificateholder’s Certificates held through a Restricted Global Security, to
      be exchanged, such instructions to contain information regarding the participant
      account with the Depository to be credited with such increase, and (B) a
      certificate in the form of Exhibit J-2 hereto given by the holder of such
      beneficial interest and stating, among other things, that the Person
      transferring such interest in such Regulation S Global Security reasonably
      believes that the Person acquiring such interest in a Restricted Global Security
      is a qualified institutional buyer within the meaning of Rule 144A, is obtaining
      such beneficial interest in a transaction meeting the requirements of Rule
      144A
      and in accordance with any applicable securities laws of any State of the United
      States or any other jurisdiction, then the Certificate Registrar will reduce
      the
      principal amount of the Regulation S Global Security and increase the principal
      amount of the Restricted Global Security by the aggregate principal amount
      of
      the beneficial interest in the Regulation S Global Security to be transferred
      and the Certificate Registrar shall instruct the Depository, concurrently with
      such reduction, to credit or cause to be credited to the account of the Person
      specified in such instructions a beneficial interest in the Restricted Global
      Security equal to the reduction in the principal amount of the Regulation S
      Global Security.

     

    
      
        
        

      

      
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    (iv) Other
      Exchanges.
      In the
      event that a Restricted Global Security or Regulation S Global Security, as
      applicable, is exchanged for Certificates in definitive registered form without
      interest coupons, such Certificates may be exchanged for one another only in
      accordance with such procedures as are substantially consistent with the
      provisions above (including certification requirements intended to insure that
      such transfers comply with Rule 144A or are to non-U.S. Persons, or otherwise
      comply with Regulation S under the Securities Act, as the case may be, and
      as
      may be from time to time adopted by the Depositor and the Certificate
      Registrar.

     

    (v) Restrictions
      on U.S. Transfers.
      Transfers of interests in the Regulation S Global Security to U.S. persons
      (as
      defined in Regulation S) shall be limited to transfers made pursuant to the
      provisions of Section 6.02(f)(iii).

     

    (g) No
      service charge shall be made for any registration of transfer or exchange of
      Certificates of any Class, but the Certificate Registrar may require payment
      of
      a sum sufficient to cover any tax or governmental charge that may be imposed
      in
      connection with any transfer or exchange of Certificates.

     

    All
      Certificates surrendered for registration of transfer or exchange shall be
      cancelled by the Certificate Registrar and disposed of pursuant to its standard
      procedures.

     

    SECTION
      6.03. Mutilated, Destroyed, Lost or Stolen Certificates.

     

    If
      (i)
      any mutilated Certificate is surrendered to the Trustee or the Certificate
      Registrar or the Trustee or the Certificate Registrar receives evidence to
      its
      satisfaction of the destruction, loss or theft of any Certificate and (ii)
      there
      is delivered to the Trustee, any NIMS Insurer, the Certificate Registrar (and
      with respect to the Insured Certificates, the Certificate Insurer) and the
      Depositor such security or indemnity as may be required by them to save each
      of
      them harmless, then, in the absence of notice to the Trustee, the Depositor
      or
      the Certificate Registrar that such Certificate has been acquired by a bona
      fide
      purchaser, the Securities Administrator shall execute on behalf of the Trust
      and
      the Certificate Registrar shall authenticate and deliver, in exchange for or
      in
      lieu of any such mutilated, destroyed, lost or stolen Certificate, a new
      Certificate of like tenor and Percentage Interest. Upon the issuance of any
      new
      Certificate under this Section, the Trustee, the Depositor or the Certificate
      Registrar 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 Depositor and the Certificate
      Registrar) in connection therewith. Any duplicate Certificate issued pursuant
      to
      this Section, shall constitute complete and indefeasible evidence of ownership
      in the Trust Fund, as if originally issued, whether or not the lost, stolen
      or
      destroyed Certificate shall be found at any time.

     

    SECTION
      6.04. Persons Deemed Owners.

     

    The
      Depositor, the Trustee, the Certificate Registrar, the Certificate Insurer
      (with
      respect to the Insured Certificates), the Paying Agent and any agent of the
      Depositor, the Trustee, the Certificate Registrar, any NIMS Insurer, the
      Certificate Insurer or the Paying Agent may treat the Person, including a
      Depository, in whose name any Certificate is registered as the owner of such
      Certificate for the purpose of receiving distributions pursuant to Section
      5.01
      hereof and for all other purposes whatsoever, and none of the Trust, the
      Depositor, the Trustee, the Certificate Registrar, any NIMS Insurer, the Paying
      Agent or any agent of any of them shall be affected by notice to the
      contrary.

     

    
      
        
        

      

      
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    SECTION
      6.05. Appointment of Paying Agent.

     

    (a) The
      Trustee, subject to the consent of the NIMS Insurer, may appoint a Paying Agent
      (which may be the Trustee) for the purpose of making distributions to
      Certificateholders hereunder. The Trustee hereby appoints the Securities
      Administrator as the initial Paying Agent. The duties of the Paying Agent may
      include the obligation (i) to withdraw funds from the Distribution Account
      pursuant to Section 4.03 hereof and (ii) to distribute statements and provide
      information to Certificateholders as required hereunder. The Paying Agent
      hereunder shall at all times be an entity duly incorporated and validly existing
      under the laws of the United States of America or any state thereof, authorized
      under such laws to exercise corporate trust powers and subject to supervision
      or
      examination by federal or state authorities. 

     

    (b) The
      Securities Administrator, as Paying Agent, shall hold all sums, if any, held
      by
      it for payment to the Certificateholders in trust for the benefit of the
      Certificateholders entitled thereto until such sums shall be paid to such
      Certificateholders and shall comply with all requirements of the Code regarding
      the withholding of payments in respect of federal income taxes due from
      Certificate Owners and otherwise comply with the provisions of this Agreement
      applicable to it.

     

    ARTICLE
      VII

     

    DEFAULT

     

    SECTION
      7.01. Event of Default. 

     

    (a) If
      any
      one of the following events (each, an “Event
      of Default”)
      shall
      occur and be continuing: 

     

    (i) the
      failure by the Master Servicer to (A) make any Advance on the Business Day
      immediately preceding the related Distribution Date or (B) to deposit in the
      Distribution Account any deposit required to be made under the terms of this
      Agreement, and in either case such failure continues unremedied for a period
      of
      one Business Day after the date upon which written notice of such failure,
      requiring the same to be remedied, shall have been given to the Master Servicer
      (or, if applicable, such shorter time period as is provided in the penultimate
      sentence of Section 7.01(c)); or

     

    (ii) the
      failure by the Master Servicer duly to observe or perform, in any material
      respect, any other covenants, obligations or agreements of the Master Servicer
      as set forth in this Agreement, which failure continues unremedied for a period
      of 60 days, in each case after the date (A) on which written notice of such
      failure, 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 Holders
      of
      Certificates evidencing at least 25% of the Voting Rights or (B) on which a
      Servicing Officer of the Master Servicer has actual knowledge of such failure
      (or, in the case of a breach of its obligation beyond any applicable cure period
      to provide an assessment of compliance, an attestation report or a
      Sarbanes-Oxley Certification pursuant to Sections 3.16 and 3.18, respectively);
      or

     

    
      
        
        

      

      
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    (iii) the
      entry
      against the Master Servicer of a decree or order by a court or agency or
      supervisory authority having jurisdiction in the premises for the appointment
      of
      a trustee, conservator, receiver or liquidator in any insolvency,
      conservatorship, receivership, readjustment of debt, marshalling of assets
      and
      liabilities or similar proceedings, or for the winding up or liquidation of
      its
      affairs, and the continuance of any such decree or order unstayed and in effect
      for a period of 60 days; or 

     

    (iv) the
      Master Servicer shall voluntarily go into liquidation, consent to the
      appointment of a conservator or receiver or liquidator or similar person in
      any
      insolvency, readjustment of debt, marshalling of assets and liabilities or
      similar proceedings of or relating to the Master Servicer or of or relating
      to
      all or substantially all of its property; or a decree or order of a court or
      agency or supervisory authority having jurisdiction in the premises for the
      appointment of a conservator, receiver, liquidator or similar person in any
      insolvency, readjustment of debt, marshalling of assets and liabilities or
      similar proceedings, or for the winding-up or liquidation of its affairs, shall
      have been entered against the Master Servicer and such decree or order shall
      have remained in force undischarged, unbonded or unstayed for a period of 60
      days; or the Master Servicer shall admit in writing its inability to pay its
      debts generally as they become due, file a petition to take advantage of any
      applicable insolvency or reorganization statute, make an assignment for the
      benefit of its creditors or voluntarily suspend payment of its
      obligations;

     

    (b) then,
      and
      in each and every such case, so long as an Event of Default shall not have
      been
      remedied within the applicable grace period, the Trustee shall, at the written
      direction of the Holders of Certificates evidencing Voting Rights aggregating
      not less than 51%, or at its option may, by notice then given in writing to
      the
      Master Servicer, terminate all of the rights and obligations of the Master
      Servicer as servicer under this Agreement. Any such notice to the Master
      Servicer shall also be given to each Rating Agency, the Certificate Insurer,
      any
      NIMS Insurer, the Depositor, the Credit Risk Manager and the Seller. On or
      after
      the receipt by the Master Servicer (and by the Trustee if such notice is given
      by the Holders) of such written notice, all authority and power of the Master
      Servicer under this Agreement, whether with respect to the Certificates or
      the
      Mortgage Loans or otherwise, shall pass to and be vested in the Trustee and
      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 of each Mortgage Loan and related
      documents or otherwise. The Master Servicer agrees to cooperate with the Trustee
      in effecting the termination of the responsibilities and rights of the Master
      Servicer hereunder, including, without limitation, the delivery to the Trustee
      of all documents and records requested by it to enable it to assume the Master
      Servicer's functions under this Agreement within ten Business Days subsequent
      to
      such notice and the transfer within one Business Day subsequent to such notice
      to the Trustee for the administration by it of all cash amounts that shall
      at
      the time be held by the Master Servicer and to be deposited by it in the
      Distribution Account, any REO Account or any Servicing Account or that have
      been
      deposited by the Master Servicer in such accounts or thereafter received by
      the
      Master Servicer with respect to the Mortgage Loans or any REO Property received
      by the Master Servicer. All reasonable costs and expenses (including attorneys'
      fees) incurred in connection with transferring the Master Servicer's duties
      and
      the Mortgage Files to the successor Master Servicer and amending this Agreement
      to reflect such succession as Master Servicer pursuant to this Section shall
      be
      paid by the predecessor Master Servicer (or if the predecessor Master Servicer
      is the Trustee, the terminated Master Servicer) upon presentation of reasonable
      documentation of such costs and expenses.
      The
      termination of the rights and obligations of the Master Servicer shall not
      affect any liability it may have incurred prior to such termination. To the
      extent that such costs and expenses of the Trustee are not fully and timely
      reimbursed by the predecessor Master Servicer, the Trustee shall be entitled
      to
      reimbursement of such costs and expenses from the Distribution
      Account.

     

    
      
        
        

      

      
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    (c) The
      Securities Administrator shall not later than the close of business on the
      Business Day immediately preceding the related Distribution Date notify the
      Trustee in writing of the Master Servicer’s failure to make any Advance required
      to be made under this Agreement on such date and the amount of such Advance.
      By
      no later than 10:00 A.M. (Chicago time) on the relevant Distribution Date,
      the
      Securities Administrator shall notify the Trustee of the continuance of such
      failure or that the Master Servicer has made the Advance, as the case may be.
      Notwithstanding the terms of the Event of Default described in clause (i) of
      Section 7.01(a), the Trustee, upon receipt of written notice on the Distribution
      Date from the Securities Administrator of the continuance of the failure of
      the
      Master Servicer to make an Advance or deposit funds to the Distribution Account,
      shall, by notice in writing to the Master Servicer, which may be delivered
      by
      telecopy, immediately suspend all of the rights and obligations of the Master
      Servicer thereafter arising under this Agreement, but without prejudice to
      any
      rights it may have as a Certificateholder or to reimbursement of outstanding
      Advances or other amounts for which the Master Servicer was entitled to
      reimbursement as of the date of suspension, and the Trustee, subject to the
      cure
      provided for in this paragraph, if available, shall act as provided in Section
      7.02 to carry out the duties of the Master Servicer, including the obligation
      to
      make any Advance the nonpayment of which is described in clause (i)(A) of
      Section 7.01(a). Any such action taken by the Trustee must be prior to the
      distribution on the relevant Distribution Date, and shall have all of the rights
      incidental thereto. If the Master Servicer shall within two Business Days
      following such suspension remit to the Trustee the amount of any Advance the
      nonpayment of which by the Master Servicer is described in clause (i)(A) of
      Section 7.01(a), together with all other amounts necessary to reimburse the
      Trustee for actual, necessary and reasonable costs incurred by the Trustee
      because of action taken pursuant to this subsection (including interest on
      any
      Advance or other amounts paid by the Trustee (from and including the respective
      dates thereof) at a per annum rate equal to the prime rate for U.S. money center
      commercial banks as published in the Wall Street Journal), then the Trustee,
      subject to the last two sentences of this paragraph, may at its sole discretion
      permit the Master Servicer to resume its rights and obligations as Master
      Servicer hereunder. If
      the
      Master Servicer shall fail to remit such amounts to the Trustee within such
      two
      Business Days after the Distribution Date, then an Event of Default shall occur
      and such notice of suspension shall be deemed to be a notice of termination
      without any further action on the part of the Trustee. The Master Servicer
      agrees that if it fails to make a required Advance by 10:00 A.M. (Chicago time)
      on the related Distribution Date on more than two occasions in any 12 month
      period, the Trustee shall be under no obligation to permit the Master Servicer
      to resume its rights and obligations as Master Servicer hereunder, and
      notwithstanding the cure period provided in Section 7.01(a)(i)(A), an Event
      of
      Default shall be deemed to have occurred on the relevant Distribution Date.
      

     

    
      
        
        

      

      
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    SECTION
      7.02. Trustee to Act.

     

    (a) From
      and
      after the date the Master Servicer (and the Trustee, if notice is sent by the
      Holders) receives a notice of termination pursuant to Section 7.01, the Trustee
      shall be the successor in all respects to the Master Servicer in its capacity
      as
      servicer under this Agreement and the transactions set forth or provided for
      herein and shall be subject to all the responsibilities, duties and liabilities
      relating thereto placed on the Master Servicer by the terms and provisions
      hereof arising on and after its succession. As compensation therefor, the
      Trustee shall be entitled to such compensation as the Master Servicer would
      have
      been entitled to hereunder if no such notice of termination had been given.
      Notwithstanding the above, (i) if the Trustee is unwilling to act as successor
      Master Servicer or (ii) if the Trustee is legally unable so to act, the Trustee
      shall appoint or petition a court of competent jurisdiction to appoint, any
      established housing and home finance institution, bank or other mortgage loan
      or
      home equity loan servicer having a net worth of not less than $15,000,000 as
      the
      successor to the Master Servicer hereunder in the assumption of all or any
      part
      of the responsibilities, duties or liabilities of the Master Servicer hereunder;
      provided, that the appointment of any such successor Master Servicer shall
      not
      result in the qualification, reduction or withdrawal of the ratings assigned
      to
      the Certificates by each Rating Agency as evidenced by a letter to such effect
      from each Rating Agency. Pending appointment of a successor to the Master
      Servicer hereunder, unless the Trustee is prohibited by law from so acting,
      the
      Trustee shall act in such capacity as hereinabove provided. In connection with
      such appointment and assumption, the successor shall be entitled to receive
      compensation out of payments on Mortgage Loans in an amount equal to the
      compensation which the Master Servicer would otherwise have received hereunder.
      The appointment of a successor Master Servicer shall not affect any liability
      of
      the predecessor Master Servicer which may have arisen under this Agreement
      prior
      to its termination as Master Servicer to pay any deductible under an insurance
      policy pursuant to Section 3.09 or to indemnify the Trustee pursuant to Section
      3.30), nor shall any successor Master Servicer be liable for any acts or
      omissions of the predecessor Master Servicer or for any breach by such Master
      Servicer of any of its representations or warranties contained herein or in
      any
      related document or agreement. The Trustee and such successor shall take such
      action, consistent with this Agreement, as shall be necessary to effectuate
      any
      such succession. 

     

    (b) Any
      successor, including the Trustee, to the Master Servicer as Master Servicer
      shall during the term of its service as Master Servicer continue to service
      and
      administer the Mortgage Loans for the benefit of Certificateholders, and
      maintain in force a policy or policies of insurance covering errors and
      omissions in the performance of its obligations as Master Servicer hereunder
      and
      a Fidelity Bond in respect of its officers, employees and agents to the same
      extent as the Master Servicer is so required pursuant to Section
      3.04. 

     

    (c) Notwithstanding
      anything else herein to the contrary, in no event shall the Trustee be liable
      for any servicing fee or for any differential in the amount of the servicing
      fee
      paid hereunder and the amount necessary to induce any successor Master Servicer
      to act as successor Master Servicer under this Agreement and the transactions
      set forth or provided for herein.

     

    
      
        
        

      

      
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    SECTION
      7.03. Waiver of Event of Default.

     

    The
      Majority Certificateholders may, on behalf of all Certificateholders, by notice
      in writing to the Trustee, direct the Trustee to waive any events permitting
      removal of any Master Servicer under this Agreement, provided,
      however,
      that
      the Majority Certificateholders may not waive an event that results in a failure
      to make any required distribution on a Certificate without the consent of the
      Holder of such Certificate. Upon any waiver of an Event of Default, such event
      shall cease to exist and any Event of Default arising therefrom shall be deemed
      to have been remedied for every purpose of this Agreement. No such waiver shall
      extend to any subsequent or other event or impair any right consequent thereto
      except to the extent expressly so waived. Notice of any such waiver shall be
      given by the Trustee to each Rating Agency and the Certificate
      Insurer.

     

    SECTION
      7.04. Notification to Certificateholders.

     

    (a) Upon
      any
      termination or appointment of a successor to any Master Servicer pursuant to
      this Article VII or Section 3.30, the Trustee shall give prompt written notice
      thereof to the Securities Administrator and the Certificateholders at their
      respective addresses appearing in the Certificate Register, to each Rating
      Agency, to any NIMS Insurer and the Certificate Insurer.

     

    (b) No
      later
      than 60 days after the occurrence of any event which constitutes or which,
      with
      notice or a lapse of time or both, would constitute an Event of Default of
      which
      a Responsible Officer of the Trustee becomes aware of the occurrence of such
      an
      event, the Trustee shall transmit by mail to all Certificateholders, any NIMS
      Insurer and the Certificate Insurer notice of such occurrence unless such Event
      of Default shall have been waived or cured.

     

    ARTICLE
      VIII

     

    THE
      TRUSTEE
      AND THE
      SECURITIES ADMINISTRATOR

     

    SECTION
      8.01. Duties of the Trustee and the Securities
      Administrator.

     

    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. If an Event of Default has occurred
      (which has not been cured or waived) of which a Responsible Officer has actual
      knowledge, the Trustee shall exercise such of the rights and powers vested
      in it
      by this Agreement, and use the same degree of care and skill in their exercise,
      as a prudent man would exercise or use under the circumstances in the conduct
      of
      his own affairs, unless the Trustee is acting as successor Master Servicer,
      in
      which case it shall use the same degree of care and skill as the Master Servicer
      hereunder with respect to the exercise of the rights and powers of the Master
      Servicer hereunder.

     

    
      
        
        

      

      
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    The
      Trustee and the Securities Administrator, upon receipt of all resolutions,
      certificates, statements, opinions, reports, documents, orders or other
      instruments furnished to the Trustee and the Securities Administrator, which
      are
      specifically required to be furnished pursuant to any provision of this
      Agreement, shall examine them to determine whether they conform to the
      requirements of this Agreement; provided,
      however,
      that
      neither the Trustee nor the Securities Administrator will be responsible for
      the
      accuracy or content of any such resolutions, certificates, statements, opinions,
      reports, documents or other instruments. If any such instrument is found not
      to
      conform to the requirements of this Agreement in a material manner the Trustee
      and the Securities Administrator shall take such action as it deems appropriate
      to have the instrument corrected. If the instrument is not corrected to the
      satisfaction of the Trustee or the Securities Administrator, as applicable,
      the
      Trustee or the Securities Administrator, as applicable, shall provide notice
      thereof to the Certificateholders and any NIMS Insurer and will, at the expense
      of the Trust Fund, which expense shall be reasonable given the scope and nature
      of the required action, take such further action as directed by the
      Certificateholders or any NIMS Insurer.

     

    On
      each
      Distribution Date, the Securities Administrator, as Paying Agent, shall make
      monthly distributions to the Final Maturity Reserve Account (commencing with
      the
      Distribution Date in October 2016) and the Certificateholders from funds in
      the
      Distribution Account, the Basis Risk Reserve Fund and, on the Distribution
      Date
      September 2026, the Final Maturity Reserve Account, as applicable, in each
      case
      as provided in Sections 5.01, 5.07, 5.09 and 10.01 hereof based on the report
      of
      the Securities Administrator.

     

    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 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 such of its 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 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 for an error of
      judgment made in good faith by a Responsible Officer 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 or investigating the facts related thereto;

     

    (iii) neither
      the Trustee nor the Securities Administrator shall be personally liable with
      respect to any action taken, suffered or omitted to be taken by it in good
      faith
      in accordance with the consent or at the direction of any NIMS Insurer or
      Holders of Certificates as provided herein relating to the time, method and
      place of conducting any remedy pursuant to this Agreement, or exercising or
      omitting to exercise any trust or power conferred upon the Trustee or the
      Securities Administrator, respectively, under this Agreement; and

     

    
      
        
        

      

      
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    (iv) the
      Trustee shall not be charged with knowledge of any Event of Default or a
      Document Transfer Event or any other event or matter that may require it to
      take
      action or omit to take action hereunder unless a Responsible Officer of the
      Trustee at the Corporate Trust Office receives written notice of such Event
      of
      Default or Document Transfer Event.

     

    Neither
      the Trustee nor the Securities Administrator shall be required to expend or
      risk
      its own funds or otherwise incur financial or other 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 indemnity satisfactory to it against such risk or liability is not
      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 under this Agreement, 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.

     

    SECTION
      8.02. Certain Matters Affecting the Trustee and the Securities
      Administrator.

     

    Except
      as
      otherwise provided in Section 8.01 hereof:

     

    (i) the
      Trustee and the Securities Administrator may request and conclusively rely
      upon,
      and shall be fully protected in acting or refraining from acting upon, any
      resolution, Officers’ Certificate, certificate of auditors or any other
      certificate, statement, instrument, opinion, report, notice, request, consent,
      order, appraisal, bond or other paper or document reasonably believed by it
      to
      be genuine and to have been signed or presented by the proper party or parties,
      and the manner of obtaining consents and of evidencing the authorization of
      the
      execution thereof by Certificateholders shall be subject to such reasonable
      regulations as the Trustee and the Securities Administrator may
      prescribe;

     

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

     

    (iii) neither
      the Trustee nor the Securities Administrator shall be under any obligation
      to
      exercise any of the rights or powers vested in it by this Agreement, or to
      institute, conduct or defend any litigation hereunder or in relation hereto,
      at
      the request, order or direction of any of the Certificateholders or any NIMS
      Insurer pursuant to the provisions of this Agreement, unless such
      Certificateholders or any NIMS Insurer shall have offered to the Trustee or
      the
      Securities Administrator, respectively, reasonable security or indemnity
      satisfactory to it against the costs, expenses and liabilities which may be
      incurred therein or thereby; the right of the Trustee to perform any
      discretionary act enumerated in this Agreement shall not be construed as a
      duty,
      and the Trustee shall not be answerable for other than its negligence or willful
      misconduct in the performance of any such act;

     

    
      
        
        

      

      
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    (iv) neither
      the Trustee nor the Securities Administrator shall be personally liable for
      any
      action taken, suffered or omitted by it in good faith and believed by it to
      be
      authorized or within the discretion or rights or powers conferred upon it by
      this Agreement;

     

    (v) neither
      the Securities Administrator nor, prior to the occurrence of an Event of Default
      and after the curing or waiver of all Events of Default which may have occurred,
      the Trustee 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 documents,
      unless requested in writing to do so by any NIMS Insurer or the Majority
      Certificateholder; provided,
      however,
      that if
      the payment within a reasonable time to the Trustee or the Securities
      Administrator of the costs, expenses or liabilities likely to be incurred by
      it
      in the making of such investigation is, in the opinion of the Trustee or the
      Securities Administrator, as applicable, not reasonably assured to the Trustee
      or the Securities Administrator by the security afforded to it by the terms
      of
      this Agreement, the Trustee or the Securities Administrator, as applicable,
      may
      require reasonable indemnity against such cost, expense, liability or payment
      of
      such estimated expenses from any NIMS Insurer or the Certificateholders, as
      applicable, as a condition to such proceeding. If the Master Servicer fails
      to
      reimburse the Trustee or the Securities Administrator in respect of the
      reasonable expense of every such examination relating to the Master Servicer,
      the Trustee or the Securities Administrator shall be reimbursed by the Trust
      Fund;

     

    (vi) the
      Trustee shall not be accountable, shall have no liability and makes no
      representation as to any acts or omissions hereunder of the Securities
      Administrator or the Master Servicer until such time as the Trustee may be
      required to act as the Master Servicer pursuant to Section 7.02 hereof and
      thereupon only for the acts or omissions of the Trustee as a successor Master
      Servicer; 

     

    (vii) the
      Trustee and the Securities Administrator may execute any of the trusts or powers
      hereunder or perform any duties hereunder either directly or by or through
      agents, nominees, attorneys or a custodian, and shall not be responsible for
      any
      willful misconduct or negligence on the part of any agent, nominee, attorney
      or
      custodian appointed by the Trustee or the Securities Administrator in good
      faith;

     

    (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 answerable for other than
      its
      negligence or willful misconduct in the performance of such act;
      and

     

    (ix) in
      order
      to comply with laws, rules, regulations and executive orders in effect from
      time
      to time applicable to the banking institutions, including those relating to
      the
      funding of terrorism and money laundering (“Applicable Law”), the Trustee and
      the Securities Administrator are required to obtain, verify and record certain
      information relating to certain individuals and certain entities which maintain
      a business relationship with the Trustee and the Securities Administrator.
      Accordingly, each of the parties agrees to provide the Trustee and the
      Securities Administrator upon its request from time to time such identifying
      information and documentation as may be available for such party in order to
      enable the Trustee and the Securities Administrator to comply with Applicable
      Law.

     

    
      
        
        

      

      
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    SECTION
      8.03. Trustee and the Securities Administrator Not Liable for Certificates or
      Mortgage Loans.

     

    The
      recitals contained herein and in the Certificates (other than the authentication
      of the Securities Administrator on the Certificates) shall be taken as the
      statements of the Depositor or the Seller, and neither the Trustee nor the
      Securities Administrator assumes responsibility for the correctness of the
      same.
      Neither the Trustee nor the Securities Administrator makes representations
      or
      warranties as to the validity or sufficiency of this Agreement or of the
      Certificates (other than with respect to the Securities Administrator the
      signature and authentication of the Securities Administrator on the
      Certificates) or of any Mortgage Loan or related document or of MERS or the
      MERS
      System. The Trustee shall not be accountable for the use or application by
      the
      Master Servicer or the Securities Administrator, or for the use or application
      of any funds paid to the Master Servicer in respect of related Mortgage Loans
      or
      deposited in or withdrawn from the Distribution Account by the Master Servicer
      or the Securities Administrator. 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 the Certificate
      Insurance Policy, 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, including, without limitation: the existence, condition and ownership
      of any Mortgaged Property; the existence and enforceability of any hazard
      insurance thereon (other than if the Trustee shall assume the duties of the
      Master Servicer pursuant to Section 7.02 hereof); the validity of the assignment
      of any Mortgage Loan to the Trustee or of any intervening assignment; the
      completeness of any Mortgage Loan; the performance or enforcement of any
      Mortgage Loan (other than if the Trustee shall assume the duties of the Master
      Servicer pursuant to Section 7.02 hereof); the compliance by the Depositor
      or
      the Seller with any warranty or representation made under this Agreement or
      in
      any related document or the accuracy of any such warranty or representation
      prior to the Trustee’s receipt of notice or other discovery of any
      non-compliance therewith or any breach thereof; any investment of monies by
      or
      at the direction of the Master Servicer or any loss resulting therefrom, it
      being understood that the Trustee shall remain responsible for any Trust Fund
      property that it may hold in its individual capacity and the Securities
      Administrator shall remain responsible for any Trust Fund property that it
      may
      hold in its individual capacity; the acts or omissions of the Master Servicer
      (other than as to the Securities Administrator, if it is also the Master
      Servicer, and as to the Trustee, if the Trustee shall assume the duties of
      the
      Master Servicer pursuant to Section 7.02 hereof, and then only for the acts
      or
      omissions of the Trustee as the successor Master Servicer), or any acts or
      omissions of, the Servicer or any Mortgagor; any action of the Master Servicer
      (other than as to the Securities Administrator, if it is the Master Servicer,
      and as to the Trustee, if the Trustee shall assume the duties of the Master
      Servicer pursuant to Section 7.02 hereof), or in the case of the Trustee the
      Securities Administrator or the Servicer taken in the name of the Trustee;
      the
      failure of the Master Servicer or the Servicer to act or perform any duties
      required of it as agent or on behalf of the Trustee or the Trust Fund hereunder;
      or any action by the Trustee taken at the instruction of the Master Servicer
      (other than if the Trustee shall assume the duties of the Master Servicer
      pursuant to Section 7.02 hereof, and then only for the actions of the Trustee
      as
      the successor Master Servicer); provided,
      however,
      that
      the foregoing shall not relieve the Trustee of its obligation to perform its
      duties under this Agreement, including, without limitation, the Trustee’s duty
      to review the Mortgage Files, if so required pursuant to Section 2.01 of this
      Agreement.

     

    
      
        
        

      

      
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    SECTION
      8.04. Trustee, Custodian, Master Servicer and Securities Administrator May
      Own Certificates.

     

    The
      Trustee, the Custodian, the Master Servicer and the Securities Administrator
      in
      their respective individual capacities, or in any capacity other than as
      Trustee, Custodian, Master Servicer or Securities Administrator hereunder,
      may
      become the owner or pledgee of any Certificates with the same rights they would
      have if they were not Trustee, Custodian, Master Servicer or Securities
      Administrator, as applicable, and may otherwise deal with the parties
      hereto.

     

    SECTION
      8.05. Trustee’s and Securities Administrator’s Fees and
      Expenses.

     

    The
      Trustee (including in its capacity as Custodian) shall be compensated by the
      Master Servicer for its services hereunder on behalf of the Trust Fund in the
      amount agreed upon by the Master Servicer and the Trustee. The Trustee Fee
      shall
      paid from a portion of the Master Servicing Fee. The Securities Administrator
      shall be compensated by the Master Servicer for its services hereunder from
      a
      portion of the Master Servicing Fee. In addition, the Trustee and the Securities
      Administrator will be entitled to recover from the Distribution Account pursuant
      to Section 4.03(a) all reasonable out-of-pocket expenses, disbursements and
      advances and the expenses of the Trustee (including for such purpose, any fees
      and expenses relating to its capacity as Custodian hereunder) and the Securities
      Administrator, respectively, including without limitation, in connection with
      any filing that the Securities Administrator is required to make under Section
      3.19 hereof, 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 performance of its duties or the administration of the trusts hereunder,
      under the Certificate Insurance Policy (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 specifically designated herein as the responsibility of the Depositor, the
      Seller, the Master Servicer, the Certificateholders or the Trust Fund hereunder
      or thereunder. If funds in the Distribution Account are insufficient therefor,
      the Trustee, the Custodian and the Securities Administrator shall recover such
      expenses from future collections on the Mortgage Loans or as otherwise agreed
      by
      the Certificateholders. 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.

     

    
      
        
        

      

      
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    SECTION
      8.06. Eligibility Requirements for Trustee and Securities
      Administrator.

     

    The
      Trustee and Securities Administrator hereunder shall at all times be an entity
      duly organized and validly existing under the laws of the United States of
      America or any state thereof, authorized under such laws to exercise corporate
      trust powers, each having a combined capital and surplus of at least $50,000,000
      and (except with respect to the initial Trustee) a minimum long-term debt rating
      in the third highest rating category by each Rating Agency and in each Rating
      Agency’s two highest short-term rating categories, and subject to supervision or
      examination by federal or state authority. If such entity publishes reports
      of
      condition at least annually, pursuant to law or to the requirements of the
      aforesaid supervising or examining authority, then for the purposes of this
      Section 8.06, the combined capital and surplus of such entity shall be deemed
      to
      be its combined capital and surplus as set forth in its most recent report
      of
      condition so published. The principal office of the Trustee (other than the
      initial Trustee) shall be in a state with respect to which an Opinion of Counsel
      has been delivered to such Trustee at the time such Trustee is appointed Trustee
      to the effect that the Trust Fund will not be a taxable entity under the laws
      of
      such state. In case at any time the Trustee or the Securities Administrator
      shall cease to be eligible in accordance with the provisions of this Section
      8.06, the Trustee or the Securities Administrator, as applicable shall resign
      immediately in the manner and with the effect specified in Section 8.07
      hereof.

     

    SECTION
      8.07. Resignation or Removal of Trustee and Securities
      Administrator.

     

    The
      Trustee and Securities Administrator may at any time resign and be discharged
      from the trusts hereby created by giving written notice thereof to the
      Depositor, the Certificate Insurer, the Seller, any NIMS Insurer, the Master
      Servicer and each Rating Agency. Upon receiving such notice of resignation
      of
      the Trustee, the Depositor shall promptly appoint a successor Trustee that
      meets
      the requirements in Section 8.06 and is reasonably acceptable to any NIMS
      Insurer and the Certificate Insurer or, in the case of notice of resignation
      of
      the Securities Administrator, the Trustee (in consultation with the Depositor)
      shall promptly appoint a successor Securities Administrator that meets the
      requirements in Section 8.06 and is reasonably acceptable to any NIMS Insurer
      and the Certificate Insurer, in each case, by written instrument, in duplicate,
      one copy of which instrument shall be delivered to (i) each of the resigning
      Trustee or Securities Administrator, as applicable, (ii) the successor Trustee
      or successor Securities Administrator, as applicable, and (iii) any NIMS Insurer
      and the Certificate Insurer. If no successor Trustee or successor Securities
      Administrator, as applicable, shall have been so appointed and having accepted
      appointment within 30 days after the giving of such notice of resignation,
      the
      resigning Trustee or Securities Administrator may petition any court of
      competent jurisdiction for the appointment of a successor Trustee or Securities
      Administrator, as applicable.

     

    If
      at any
      time the Trustee or the Securities Administrator shall cease to be eligible
      in
      accordance with the provisions of Section 8.06 hereof and shall fail to resign
      after written request therefor by the Depositor or any NIMS Insurer or if at
      any
      time the Trustee or the Securities Administrator shall be legally unable to
      act,
      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, or if the Trustee
      (in its capacity as Custodian) or the Securities Administrator fails to provide
      an assessment of compliance or an attestation report required under Section
      3.16
      within 15 calendar days of March 1 of each calendar year in which Exchange
      Act
      reports are required then the Depositor or any NIMS Insurer may remove the
      Trustee or the Trustee may remove the Securities Administrator, as applicable.
      If the Depositor or the Trustee removes the Trustee or the Securities
      Administrator, respectively under the authority of the immediately preceding
      sentence, the Depositor or the Trustee shall promptly appoint a successor
      Trustee or successor Securities Administrator, in each case, reasonably
      acceptable to the NIMS Insurer, that meets the requirements of Section 8.06,
      as
      applicable, by written instrument, in quintuplicate, one copy of which
      instrument shall be delivered to the Trustee or the Securities Administrator,
      as
      applicable, so removed, one copy to the successor Trustee or successor
      Securities Administrator, as applicable, one copy to the Master Servicer, and
      one copy to the Certificate Insurer, and one copy to the NIMS
      Insurer.

     

    
      
        
        

      

      
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    The
      Majority Certificateholders (or any NIMS Insurer in the event of failure of
      the
      Trustee or Securities Administrator, as applicable, to perform its obligations
      hereunder) may at any time remove the Trustee or the Securities Administrator
      by
      written instrument or instruments delivered to the Depositor and the Trustee;
      the Depositor or the Trustee shall thereupon use its best efforts to appoint
      a
      successor Trustee or successor Securities Administrator, as applicable, in
      each
      case, acceptable to the NIMS Insurer, in accordance with this
      Section.

     

    Any
      resignation or removal of the Trustee or the Securities Administrator and
      appointment of a successor Trustee or a successor Securities Administrator,
      pursuant to any of the provisions of this Section 8.07 shall not become
      effective until acceptance of appointment by the successor Trustee or a
      successor Securities Administrator, as applicable, as provided in Section 8.08
      hereof. As long as the Certificate Insurance Policy is in effect, the Trustee
      or
      the Securities Administrator, as applicable, will send a written notice to
      the
      Certificate Insurer of any such resignation, removal or appointment. If the
      Trustee or the Securities Administrator is removed pursuant to this Section
      8.07, it shall be reimbursed any outstanding and unpaid fees and expenses,
      and
      if removed under the authority of the immediately preceding paragraph, the
      Trustee or the Securities Administrator shall also be reimbursed any outstanding
      and unpaid costs and expenses.

     

    Notwithstanding
      anything to the contrary contained herein, in the event that the Master Servicer
      resigns or is removed as Master Servicer hereunder, the Securities Administrator
      shall have the right to resign immediately as Securities Administrator by giving
      written notice to the Depositor and the Trustee, with a copy to each Rating
      Agency and the Certificate Insurer.

     

    SECTION
      8.08. Successor Trustee and Successor Securities
      Administrator.

     

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

    
      
        
        

      

      
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    No
      successor Trustee or successor Securities Administrator shall accept appointment
      as provided in this Section 8.08 unless at the time of such acceptance such
      successor Trustee or successor Securities Administrator shall be eligible under
      the provisions of Section 8.06 hereof and the appointment of such successor
      Trustee or successor Securities Administrator shall not result in a downgrading
      of the Senior Certificates by each Rating Agency, as evidenced by a letter
      from
      each Rating Agency.

     

    Upon
      acceptance of appointment by a successor Trustee or successor Securities
      Administrator, as applicable, as provided in this Section 8.08, the successor
      Trustee or successor Securities Administrator shall mail notice of the
      appointment of a successor Trustee or Securities Administrator hereunder to
      all
      Holders of Certificates at their addresses as shown in the Certificate Register,
      to the Certificate Insurer and to each Rating Agency.

     

    SECTION
      8.09. Merger or Consolidation of Trustee or Securities
      Administrator.

     

    Any
      entity into which the Trustee or the Securities Administrator may be merged
      or
      converted or with which it may be consolidated, or any entity resulting from
      any
      merger, conversion or consolidation to which the Trustee or the Securities
      Administrator shall be a party, or any entity succeeding to the corporate trust
      business of the Trustee or the Securities Administrator, shall be the successor
      of the Trustee or the Securities Administrator, as applicable, hereunder,
      provided such entity shall be eligible under the provisions of Section 8.06
      and
      8.08 hereof, 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
      8.10. Appointment of Co-Trustee or Separate Trustee.

     

    Notwithstanding
      any other provisions of this Agreement, at any time, for the purpose of meeting
      any legal requirements of any jurisdiction in which any part of the Trust Fund
      or any Mortgaged Property may at the time be located, the Depositor and the
      Trustee acting jointly shall have the power, and the Trustee shall, and shall
      instruct the Depositor to, execute and deliver all instruments to appoint one
      or
      more Persons, approved by the Trustee and any NIMS Insurer to act as co-trustee
      or co-trustees, jointly with the Trustee, or separate trustee or separate
      trustees, at the expense of the Trust Fund, of all or any part of the Trust
      Fund, and to vest in such Person or Persons, in such capacity and for the
      benefit of the Certificateholders, such title to the Trust Fund, or any part
      thereof, and, subject to the other provisions of this Section 8.10, such powers,
      duties, obligations, rights and trusts as the Master Servicer and the Trustee
      may consider necessary or desirable. No co-trustee or separate trustee hereunder
      shall be required to meet the terms of eligibility as a successor Trustee under
      Section 8.06 hereof, and no notice to Certificateholders of the appointment
      of
      any co-trustee or separate trustee shall be required under Section 8.08
      hereof.

    
      
        
        

      

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

     

    (i) all
      rights, powers, duties and obligations conferred or imposed upon the Trustee
      shall be conferred or imposed upon and exercised or performed by the Trustee
      and
      such separate trustee or co-trustee jointly (it being understood that such
      separate trustee or co-trustee is not authorized to act separately without
      the
      Trustee joining in such act), except to the extent that under any law of any
      jurisdiction in which any particular act or acts are to be performed (whether
      as
      Trustee hereunder or as successor to 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 Fund or any portion thereof in any such jurisdiction) shall be
      exercised and performed singly by such separate trustee or co-trustee, but
      solely at the direction of the Trustee;

     

    (ii) no
      trustee hereunder shall be held personally liable by reason of any act or
      omission of any other trustee hereunder; and

     

    (iii) the
      Depositor and the Trustee, acting jointly may at any time accept the resignation
      of or remove any separate trustee or co-trustee.

     

    Any
      notice, request or other writing given to the Trustee shall be deemed to have
      been given to each of the 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
      VIII. Each separate trustee and co-trustee, upon its acceptance of the trusts
      conferred, shall be vested with the estates or property specified in its
      instrument of appointment, either jointly with the Trustee or separately, as
      may
      be provided therein, subject to all the provisions of this Agreement,
      specifically including every provision of this Agreement relating to the conduct
      of, affecting the liability of, or affording protection to, the Trustee. Every
      such instrument shall be filed with the Trustee and a copy thereof given to
      the
      Depositor and any NIMS Insurer.

     

    Any
      separate trustee or co-trustee may, at any time, constitute the Trustee, its
      agent or attorney-in-fact, with full power and authority, to the extent not
      prohibited by law, to do any lawful act under or in respect of this Agreement
      on
      its behalf and in its name. If any separate trustee or co-trustee shall die,
      become incapable of acting, resign or be removed, all of its estates,
      properties, rights, remedies and trusts shall vest in and be exercised by the
      Trustee, to the extent permitted by law, without the appointment of a new or
      successor Trustee.

     

    SECTION
      8.11. Limitation of Liability.

     

    The
      Certificates are executed by the Securities Administrator, not in its individual
      capacity but solely as Securities Administrator on behalf of the Trust Fund,
      in
      the exercise of the powers and authority conferred and vested in it by this
      Agreement. Each of the undertakings and agreements made on the part of the
      Securities Administrator in the Certificates is made and intended not as a
      personal undertaking or agreement by the Trustee but is made and intended for
      the purpose of binding only the Trust Fund.

    
      
        
        

      

      
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    SECTION
      8.12. Trustee May Enforce Claims Without Possession of
      Certificates.

     

    (a) All
      rights of action and claims under this Agreement or the Certificates may be
      prosecuted and enforced by the Trustee without the possession of any of the
      Certificates or the production thereof in any proceeding relating thereto,
      and
      such proceeding instituted by the Trustee shall be brought in its own name
      or in
      its capacity as Trustee for the benefit of all Holders of such Certificates,
      subject to the provisions of this Agreement. Any recovery of judgment shall,
      after provision for the payment of the reasonable compensation, expenses,
      disbursement and advances of the Trustee (for the avoidance of doubt, in its
      individual capacity and as Trustee on behalf of the Trust Fund), its agents
      and
      counsel, be for the ratable benefit or the Certificateholders in respect of
      which such judgment has been recovered.

     

    (b) The
      Trustee shall afford the Seller, the Depositor and each Certificateholder upon
      reasonable notice during normal business hours at its Corporate Trust Office
      or
      other office designated by the Trustee, access to all records maintained by
      the
      Trustee in respect of its duties hereunder and access to officers of the Trustee
      responsible for performing such duties. Upon request, the Trustee shall furnish
      the Depositor and any requesting Certificateholder with its most recent audited
      financial statements. The Trustee shall cooperate fully with the Seller, the
      Depositor and such Certificateholder and shall, subject to the first sentence
      of
      this Section 8.12(b), make available to the Seller, the Depositor and such
      Certificateholder for review and copying such books, documents or records as
      may
      be requested with respect to the Trustee’s duties hereunder. The Seller, the
      Depositor and the Certificateholders shall not have any responsibility or
      liability for any action or failure to act by the Trustee and are not obligated
      to supervise the performance of the Trustee under this Agreement or
      otherwise.

     

    (c) The
      Securities Administrator shall afford the Seller, the Depositor, the Trustee
      and
      each Certificateholder upon reasonable notice during normal business hours
      at
      its offices at 9062 Old Annapolis Road, Columbia, Maryland 21045 or other office
      designated by the Securities Administrator, access to all records maintained
      by
      the Securities Administrator in respect of its duties hereunder and access
      to
      officers of the Securities Administrator responsible for performing such duties.
      The Securities Administrator shall cooperate fully with the Seller, the
      Depositor, the Trustee and such Certificateholder and shall, subject to the
      first sentence of this Section 8.12(c), make available to the Seller, the
      Depositor and such Certificateholder for review and copying such books,
      documents or records as may be reasonably requested with respect to the
      Securities Administrator’s duties hereunder. The Seller, the Depositor, the
      Trustee and the Certificateholders shall not have any responsibility or
      liability for any action or failure to act by the Securities Administrator
      and
      are not obligated to supervise the performance of the Securities Administrator
      under this Agreement or otherwise.

     

    SECTION
      8.13. Suits for Enforcement.

     

    In
      case
      an Event of Default or a default by the Depositor hereunder shall occur and
      be
      continuing, the Trustee may proceed to protect and enforce its rights and the
      rights of the Certificateholders under this Agreement, as the case may be,
      by a
      suit, action or proceeding in equity or at law or otherwise, whether for the
      specific performance of any covenant or agreement contained in this Agreement
      or
      in aid of the execution of any power granted in this Agreement or for the
      enforcement of any other legal, equitable or other remedy, as the Trustee,
      being
      advised by counsel, and subject to the foregoing, shall deem most effectual
      to
      protect and enforce any of the rights of the Trustee and the
      Certificateholders.

    
      
        
        

      

      
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    SECTION
      8.14. Waiver of Bond Requirement.

     

    The
      Trustee shall be relieved of, and each Certificateholder hereby waives, any
      requirement of any jurisdiction in which the Trust Fund, or any part thereof,
      may be located that the Trustee post a bond or other surety with any court,
      agency or body whatsoever.

     

    SECTION
      8.15. Waiver of Inventory, Accounting and Appraisal
      Requirement.

     

    The
      Trustee shall be relieved of, and each Certificateholder hereby waives, any
      requirement of any jurisdiction in which the Trust Fund, or any part thereof,
      may be located that the Trustee file any inventory, accounting or appraisal
      of
      the Trust Fund with any court, agency or body at any time or in any manner
      whatsoever.

     

    SECTION
      8.16. Appointment of Custodians.

     

    The
      Trustee may appoint one or more custodians to hold all or a portion of the
      related Mortgage Files as agent for the Trustee, by entering into a custodial
      agreement. The custodian may at any time be terminated and a substitute
      custodian appointed therefor by the Trustee. Subject to this Article VIII,
      the
      Trustee agrees to comply with the terms of each custodial agreement and to
      enforce the terms and provisions thereof against the custodian for the benefit
      of the Certificateholders having an interest in any Mortgage File held by such
      custodian. Each custodian shall be a depository institution or trust company
      subject to supervision by federal or state authority, shall have combined
      capital and surplus of at least $15,000,000 and shall be qualified to do
      business in the jurisdiction in which it holds any Mortgage File. The Seller
      shall pay from its own funds, without any right to reimbursement, the fees,
      costs and expenses of each custodian (including the costs of custodian’s
      counsel).

     

    ARTICLE
      IX

     

    REMIC
      ADMINISTRATION

     

    SECTION
      9.01. REMIC Administration.

     

    (a) As
      set
      forth in the Preliminary Statement to this Agreement, two REMIC elections shall
      be made by the Trust Fund. The Trustee shall sign and the Securities
      Administrator shall file such elections on Form 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
      in
      each REMIC created hereunder and the related residual interest shall be as
      designated in the Preliminary Statement. Following the Closing Date, the
      Securities Administrator shall apply to the Internal Revenue Service for an
      employer identification number for each REMIC created hereunder by means of
      a
      Form SS-4 or other acceptable method and shall file a Form 8811 with the
      Internal Revenue Service.

    
      
        
        

      

      
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    (b) The
      Closing Date is hereby designated as the “Startup Day” of each REMIC created
      hereunder within the meaning of section 860G(a)(9) of the Code.
      The
      latest possible maturity date for each interest in any REMIC created hereby
      shall be the Latest Possible Maturity Date.

     

    (c) Except
      as
      provided in subsection (d) of this Section 9.01, the Securities Administrator
      shall pay any and all tax related expenses (not including taxes) of each REMIC
      created hereunder, including but not limited to any professional fees or
      expenses related to audits or any administrative or judicial proceedings with
      respect to any 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 the Securities Administrator’s duties as tax return
      preparer).

     

    (d) The
      Securities Administrator shall prepare and file, and the Trustee shall sign
      all
      of the federal and state tax and information returns of each REMIC created
      hereunder (collectively, the “Tax
      Returns”)
      as the
      direct representative. The expenses of preparing and filing such Tax Returns
      shall be borne by the Securities Administrator. Notwithstanding the foregoing,
      the Securities Administrator shall have no obligation to prepare, file or
      otherwise deal with partnership tax information or returns. In the event that
      partnership tax information or returns are required by the Internal Revenue
      Service, the Seller, at its own cost and expense, will prepare and file all
      necessary returns.
      The
      Internal Revenue Service has issued OID regulations under Sections 1271 to
      1275
      of the Code generally addressing the treatment of debt instruments issued with
      original issue discount. Under those regulations, debt issued to one Person
      generally is aggregated in determining if there is OID. Because certain Classes
      of Regular Certificates are expected to be issued to one Person (which intends
      to continue to hold the Regular Certificates indefinitely and, in any case,
      for
      at least 30 days), the Securities Administrator, on behalf of the Trust Fund
      and
      upon receipt of written direction from the Depositor, will determine the
      existence and amount of any OID as if those Classes of Regular Certificates
      were
      one debt instrument and based solely on information provided by the Depositor
      to
      the Securities Administrator.

     

    (e) The
      Securities Administrator shall perform on behalf of each REMIC created hereunder
      all reporting and other tax compliance duties that are the responsibility of
      each 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 (i) 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 organization and (ii) to the Certificateholders such
      information or reports as are required by the Code or REMIC
      Provisions.
      The
      Securities Administrator, however, shall have no information or other tax
      reporting obligations with respect to the Final Maturity Reserve Trust.

     

    (f) Each
      of
      the Master Servicer, Trustee and the Securities Administrator (to the extent
      that the affairs of the REMICs are within such Person’s control and the scope of
      its specific responsibilities under the Agreement) and the Holders of
      Certificates shall take any action or cause any REMIC created hereunder to
      take
      any action necessary to create or maintain the status of any REMIC created
      hereunder as a REMIC under the REMIC Provisions and shall assist each other
      as
      necessary to create or maintain such status. None of the Trustee, the Securities
      Administrator or the Holder of a Residual Certificate shall take any action,
      cause any REMIC created hereunder 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 result in an Adverse REMIC Event unless the
      Trustee and the Securities Administrator and any NIMS Insurer have received
      an
      Opinion of Counsel (at the expense of the party seeking to take such action)
      to
      the effect that the contemplated action will not result in an Adverse REMIC
      Event. In addition, prior to taking any action with respect to any REMIC created
      hereunder or the assets therein, or causing any such REMIC to take any action
      which is not expressly permitted under the terms of this Agreement, any Holder
      of the Residual Certificate will consult with the Trustee, the Master Servicer,
      the Securities Administrator, the NIMS Insurer or their respective designees,
      in
      writing, with respect to whether such action could cause an Adverse REMIC Event
      to occur with respect to any such REMIC, and no such Person shall take any
      such
      action or cause any REMIC created hereunder to take any such action as to which
      the Securities Administrator or any NIMS Insurer has advised it in writing
      that
      an Adverse REMIC Event could occur. 

    
      
        
        

      

      
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    (g) Each
      Holder of a Residual Certificate shall pay when due any and all taxes imposed
      on
      any REMIC created hereunder in which it owns the residual interest by federal
      or
      state governmental authorities. To the extent that such Trust Fund taxes are
      not
      paid by the 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 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 such REMIC,
      as the case may be.

     

    (h) The
      Securities Administrator shall, for federal income tax purposes, maintain books
      and records with respect to each REMIC created hereunder on a calendar year
      and
      on an accrual basis.

     

    (i) No
      additional contributions of assets shall be made to any REMIC created hereunder,
      except as expressly provided in this Agreement with respect to eligible
      substitute mortgage loans.

     

    (j) None
      of
      the Trustee, the Master Servicer or the Securities Administrator shall enter
      into any arrangement by which any REMIC created hereunder will receive a fee
      or
      other compensation for services.

     

    (k) The
      Securities Administrator shall treat the Basis Risk Reserve Fund as an outside
      reserve fund within the meaning of Treasury Regulation Section 1.860G-2(h),
      and
      not as assets of any REMIC. The Holders of the Class C Certificates are the
      owners of the Basis Risk Reserve Fund. The Securities Administrator shall treat
      the rights of the Holders of the LIBOR Certificates to receive distributions
      to
      cover Basis Risk Shortfalls as payments under a cap contract written by the
      Holders of the Class C Certificates in favor of the related Holders of the
      LIBOR
      Certificates. Thus, the LIBOR Certificates shall be treated as representing
      not
      only ownership of regular interests in a REMIC, but also ownership of an
      interest in an interest rate cap contract. For purposes of determining the
      issue
      prices of the Certificates, the interest rate cap contracts shall be assumed
      to
      have a zero value unless and until required otherwise by an applicable taxing
      authority.

     

    
      
        
        

      

      
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    (l) The
      Securities Administrator shall treat the Final Maturity Reserve Trust as an
      outside reserve fund within the meaning of Treasury Regulation Section
      1.860G-2(h) owned by the holders of the Class C Certificates and not assets
      of
      any REMIC. The Class C Certificateholder shall be treated as the owner of the
      Final Maturity Reserve Trust and any payments made from the Final Maturity
      Reserve Trust to beneficial owners of Certificates (other than the Class C
      Certificates) shall be treated for federal income tax purposes as payments
      made
      by the Class C Certificateholder in exchange for an interest in the Certificates
      then owned by such beneficial owners.

     

    (m) 
      For
      federal income tax purposes, upon any sale of the property held by the Trust
      Fund pursuant to Section 10.01(a), any NIM Redemption Amount and any Premium
      Proceeds paid by the Servicer shall not be treated as a portion of the purchase
      price paid for such property but shall instead be treated as an amount paid
      by
      the Servicer to the Holder of the Class C Certificates pursuant to a cash
      settled call option with respect to the property held by the Trust
      Fund.

     

    SECTION
      9.02. Prohibited Transactions and Activities.

     

    None
      of
      the Depositor, the Master Servicer or the Trustee 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 the REMICs created hereunder pursuant to Article
      X of this Agreement, (iv) a substitution pursuant to Article II hereof or (v)
      a
      repurchase of Mortgage Loans as contemplated hereunder, nor acquire any assets
      for any REMIC created hereunder, nor sell or dispose of any investments in
      the
      Distribution Account for gain, nor accept any contributions to any REMIC created
      hereunder after the Closing Date, unless the Depositor, the Trustee and any
      NIMS
      Insurer have 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 result in an Adverse REMIC
      Event.

     

    ARTICLE
      X

     

    TERMINATION

     

    SECTION
      10.01. Termination.

     

    (a) The
      respective obligations and responsibilities of the Seller, the Depositor, the
      Master Servicer, the Securities Administrator and the Trustee created hereby
      (other than the obligation of the Securities Administrator, as Paying Agent,
      to
      make certain payments to Certificateholders after the final Distribution Date
      and the obligation of the Master Servicer to send certain notices as hereinafter
      set forth) shall terminate upon notice to the Trustee and the Securities
      Administrator upon the earliest of (i) the Distribution Date on which the
      Class Principal Balance of each Class of Certificates has been reduced to zero,
      (ii) the final payment or other liquidation of the last Mortgage Loan,
      (iii) the optional purchase of the Mortgage Loans by the Terminator as
      described in the following paragraph and (iv) the Latest Possible Maturity
      Date. Notwithstanding
      the foregoing, in no event shall the trust created hereby continue beyond the
      expiration of 21 years from the death of the last survivor of the descendants
      of
      Joseph P. Kennedy, the late ambassador of the United States to the Court of
      St.
      James’s, living on the date hereof.

    
      
        
        

      

      
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    Following
      the date on which the aggregate of the Stated Principal Balances of the Mortgage
      Loans (after giving effect to scheduled payments of principal due during the
      related Due Period, to the extent received or advanced, and unscheduled
      collections of principal received during the related Prepayment Period) on
      such
      date is equal to or less than 10% of the Cut-off Date Aggregate Principal
      Balance (the “Call
      Option Date”),
      the
      Servicer (in such context, the “Terminator”),
      with
      the prior written consent of the NIMS Insurer (which consent shall not be
      unreasonably withheld) or the NIMS Insurer may, at its option, terminate this
      Agreement by purchasing, on the next succeeding Distribution Date, all of the
      outstanding Mortgage Loans and REO Properties at a price equal to (A) the
      greater of (i) the Stated Principal Balance of the Mortgage Loans (after giving
      effect to scheduled payments of principal due during the related Due Period,
      to
      the extent received or advanced, and unscheduled collections of principal
      received during the related Prepayment Period) and the appraised value of the
      REO Properties and (ii) the fair market value of the Mortgage Loans and REO
      Properties (as determined and as agreed upon by (w) the Terminator, (x) the
      NIMS
      Insurer, (y) the Holders of a majority in Percentage Interest of the Class
      C
      Certificates and (z) if the Holders of the LIBOR Certificates will not receive
      all amounts due and payable as a result of the exercise of the option by the
      Terminator, the Trustee, in their good faith business judgment as of the close
      of business on the third Business Day next preceding the date upon which notice
      of any such termination is furnished to the related Certificateholders pursuant
      to Section 10.01(b)), plus, (B) in each case, 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 any unreimbursed Servicing
      Advances and Advances and any unpaid Master Servicing Fees and Servicing Fees
      allocable to such Mortgage Loans and REO Properties and all amounts, if any,
      then due and owing to the Trustee, the Master Servicer, the Securities
      Administrator and the Certificate Insurer under this Agreement, plus
      any
      Basis Risk Shortfalls then remaining unpaid or which is due to the exercise
      of
      such option (the “Termination
      Price”);
      provided,
      however,
      such
      option may only be exercised if the Termination Price is sufficient to result
      in
      the payment of all interest accrued on, as well as amounts necessary to retire
      the Class Principal Balance of, each Class of Certificates issued pursuant
      to
      this Agreement; and, provided,
      further,
      that if
      there are any NIM Securities outstanding, the Servicer may only exercise its
      option after receiving the prior written consent of the holders of such NIM
      Securities and, if such consent is given, the Termination Price shall also
      include an amount equal to the sum of (1) any accrued interest on the NIM
      Securities, (2) the unpaid principal balance of any such NIM Securities and
      (3)
      any other reimbursable expenses owed by the issuer of the NIM Securities (the
      “NIM
      Redemption Amount”).
      If
      the fair market value of the Mortgage Loans and REO Properties shall be required
      to be made and agreed upon by the Servicer, if it is Terminator, and the Holders
      of a majority of Percentage Interest of the Class C Certificates as provided
      in
      (ii) above in their good faith business judgment, and such determination shall
      take into consideration an appraisal of the value of the Mortgage Loans and
      REO
      Properties conducted by an independent appraiser mutually agreed upon by the
      Securities Administrator, the Holders of a majority in Percentage Interest
      of
      the Class C Certificates and the Terminator in their reasonable discretion,
      such
      appraisal to be obtained by the Holders of a majority in Percentage Interest
      of
      the Class C Certificates at their expense, and (A) such appraisal shall be
      obtained at no expense to the Trustee and the Securities Administrator and
      (B)
      the Trustee and the Securities Administrator may conclusively rely on, and
      shall
      be protected in relying on, such fair market value determination. No such
      purchase by the Terminator will be permitted without the consent of the NIMS
      Insurer and the consent of the Certificate Insurer if a draw on the Policy
      will
      be made or if any amounts due to the Certificate Insurer would remain
      unreimbursed on the Final Distribution Date.

    
      
        
        

      

      
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    If
      the
      Servicer does not exercise its option as described above, then the NIMS Insurer
      shall have the right to exercise such option and (i) the NIMS Insurer shall
      remit the Termination Price in immediately available funds to the Servicer
      at
      least three Business Days prior to the applicable Distribution Date and, upon
      receipt of such funds from the NIMS Insurer, the Servicer shall promptly deposit
      such funds in the Distribution Account and (ii) upon the termination of the
      Trust Fund, the Trustee will transfer the property of the Trust Fund to the
      NIMS
      Insurer. The NIMS Insurer shall be obligated to reimburse the Servicer for
      its
      reasonable out-of-pocket expenses incurred in connection with its termination
      of
      the Trust Fund by the NIMS Insurer and shall indemnify and hold harmless the
      Servicer for all losses, liabilities or expenses resulting from any claims
      directly resulting from or relating to the termination of the Trust Fund by
      the
      NIMS Insurer, except to the extent such losses, liabilities or expenses arise
      out of or result from the Servicer’s negligence, bad faith or willful
      misconduct. No such purchase by the Servicer or the NIMS Insurer will be
      permitted without the consent of the Certificate Insurer if a draw on the
      Certificate Insurance Policy will be made or if any amounts due to the
      Certificate Insurer would remain unreimbursed on the final Distribution
      Date.

     

    In
      connection with any such purchase pursuant to the preceding paragraph, the
      Master Servicer shall deposit in the Distribution Account all amounts then
      on
      deposit in the Distribution Account, which deposit shall be deemed to have
      occurred immediately preceding such purchase.

     

    In
      addition, Wells Fargo Bank, N.A. (solely in its capacity as the Master Servicer)
      may, at its option, terminate this Agreement on any Distribution Date on which
      the aggregate of the Stated Principal Balances of the Mortgage Loans as of
      the
      end of the immediately preceding Due Period is equal to or less than 1% of
      the
      Cut-off Date Aggregate Principal Balance, by purchasing, on such Distribution
      Date, all of the outstanding Mortgage Loans and REO Properties at a price equal
      to Termination Price; provided,
      that
      the
      right of Wells Fargo Bank, N.A. to repurchase all the Mortgage Loans shall
      be
      exercisable only if Downey has not elected to exercise its optional termination
      right on or before such date. No such purchase by the Master Servicer will
      be
      permitted without the consent of the Certificate Insurer if a draw on the
      Certificate Insurance Policy will be made or if any amounts due to the
      Certificate Insurer would remain unreimbursed on the final Distribution
      Date.

     

    (b) Notice
      of
      any termination pursuant to the second paragraph of Section 10.01(a), specifying
      the Distribution Date (which shall be a date that would otherwise be a
      Distribution Date) upon which the Certificateholders may surrender their
      Certificates to the Certificate Registrar for payment of the final distribution
      and cancellation, shall be given promptly by the Trustee upon the Trustee
      receiving notice of such date from the Master Servicer by letter to the
      Certificateholders mailed not earlier than the 10th day and not later than
      the 19th day of the month immediately preceding the month of such final
      distribution specifying (1) the Distribution Date upon which final
      distribution of the Certificates will be made upon presentation and surrender
      of
      such Certificates at the office or agency of the Certificate Registrar therein
      designated, (2) the amount of any such final distribution and (3) 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 or agency of the Certificate Registrar therein
      specified. The Trustee shall give such notice to the Securities Administrator,
      the Master Servicer, the Certificate Insurer and the Certificate Registrar
      at
      the time such notice is given to Holders of the Certificates. Upon any such
      termination, the duties of the Certificate Registrar with respect to the
      Certificates shall terminate and the Trustee shall terminate, or request the
      Master Servicer to terminate, the Distribution Account and any other account
      or
      fund maintained with respect to the Certificates, subject to the Trustee’s
      obligation hereunder to hold all amounts payable to Certificateholders in trust
      without interest pending such payment.

    
      
        
        

      

      
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    (c) Upon
      presentation and surrender of the Certificates, the Securities Administrator,
      as
      Paying Agent, shall cause to be distributed to the Holders of the Certificates
      on the Distribution Date for such final distribution, in proportion to the
      Percentage Interests of their respective Class and to the extent that funds
      are
      available for such purpose, an amount equal to the amount required to be
      distributed to such Holders in accordance with the provisions of
      Section 5.01 hereof for such Distribution Date; provided,
      however,
      that
      with respect to amounts that would otherwise be distributed to the Class R
      Certificates (i) with respect to the Group 1 Mortgage Loans on the final
      Distribution Date, such amounts, if any, shall be distributed to the Class
      2A-1A, Class 2A-1B1, Class 2A-1B2, Class 2A-1B3 and Class 2A-1C Certificates,
      pro
      rata
      up to
      the amount by which the aggregate Class Principal Balance of the classes of
      Senior Certificates related to Loan Group 2 on such date is greater than the
      Loan Group Balance of the related Group 2 Mortgage Loans for such Distribution
      Date and (ii) with respect to the Group 2 Mortgage Loans on the final
      Distribution Date, such amounts, if any, shall be distributed to the Class
      1A-1A
      and Class 1A-1B Certificates up to the amount by which the aggregate Class
      Principal Balance of the classes of Senior Certificates related to Loan Group
      1
      on such date is greater than the Loan Group Balance of the related Group 1
      Mortgage Loans for such Distribution Date.

     

    (d) In
      the
      event that all Certificateholders shall not surrender their Certificates for
      final payment and cancellation on or before such final Distribution Date, the
      Securities Administrator shall promptly following such date cause all funds
      in
      the Distribution Account not distributed in final distribution to
      Certificateholders to be withdrawn therefrom and credited to the remaining
      Certificateholders by depositing such funds in a separate account for the
      benefit of such Certificateholders, and within six months, the Trustee shall
      give a second written notice to the remaining Certificateholders to surrender
      their Certificates for cancellation and receive the final distribution with
      respect thereto. If within nine months after the second notice all the
      Certificates shall not have been surrendered for cancellation, the Master
      Servicer shall be entitled to all unclaimed funds and other assets which remain
      subject hereto, and the Securities Administrator and the Trustee upon transfer
      of such funds shall be discharged of any responsibility for such funds, and
      the
      Certificateholders shall look to the Master Servicer for payment.

     

    
      
        
        

      

      
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    SECTION
      10.02. Additional Termination Requirements.

     

    (a) In
      the
      event the purchase option provided in Section 10.01 is exercised, the Trust
      Fund shall be terminated in accordance with the following additional
      requirements:

     

    (i) The
      Trustee at the direction of the Securities Administrator shall sell any
      remaining assets of the Trust Fund to Downey or its designee or Wells Fargo
      Bank, N.A. or its designee, as the case may be, for cash and, within 90 days
      of
      such sale, shall distribute to (or credit to the account of) the
      Certificateholders the proceeds of such sale together with any cash on hand
      (less amounts retained to meet claims) in complete liquidation of the Trust
      Fund, and each REMIC created hereunder; and

     

    (ii) The
      Securities Administrator shall attach a statement to the final federal income
      tax return for each REMIC created hereunder stating that pursuant to Treasury
      Regulation §1.860F-1, the first day of the 90 day liquidation period for such
      REMIC was the date on which the Trustee sold the assets of the Trust Fund and
      shall satisfy all requirements of a qualified liquidation under Section 860F
      of
      the Code and any regulations thereunder as evidenced by an Opinion of Counsel
      delivered to the Trustee, the Certificate Insurer and the Securities
      Administrator obtained at the expense of the Seller.

     

    (b) By
      their
      acceptance of Certificates, the Holders thereof hereby agree to appoint the
      Trustee and the Securities Administrator as their attorneys in fact to undertake
      the foregoing steps.

     

    SECTION
      10.03. NIMS Insurer Optional Repurchase Right of Distressed Mortgage
      Loans.

     

    The
      NIMS
      Insurer, if any, may repurchase any Distressed Mortgage Loan for a purchase
      price equal to the outstanding principal balance of such Mortgage Loan, plus
      accrued interest thereon to the date of repurchase plus any unreimbursed
      Advances, Servicing Advances or Servicing Fees allocable to such Distressed
      Mortgage Loan. Any such repurchase shall be accomplished by the NIMS Insurer’s
      remittance of the purchase price for the Distressed Mortgage Loan to the
      Securities Administrator for deposit into the Distribution Account. The NIMS
      Insurer shall not use any procedure in selecting Distressed Mortgage Loans
      to be
      repurchased which would be materially adverse to
      Certificateholders.

     

    ARTICLE
      XI

     

    DISPOSITION
      OF TRUST FUND ASSETS

     

    SECTION
      11.01. Disposition of Trust Fund Assets.

     

    Neither
      the Trust Fund, nor this Agreement, may be terminated or voided, or any
      disposition of the assets of the Trust Fund effected, other than in accordance
      with the terms hereof, except to the extent that Holders representing no less
      than the entire beneficial ownership interest of the Certificates have consented
      in writing to such action.

    
      
        
        

      

      
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    ARTICLE
      XII 

     

    MISCELLANEOUS
      PROVISIONS

     

    SECTION
      12.01. Amendment.

     

    This
      Agreement may be amended from time to time by the Seller, the Depositor, the
      Master Servicer, the Securities Administrator, the Credit Risk Manager and
      the
      Trustee (with the consent of any NIMS Insurer) without the consent of the
      Certificateholders and, with respect to any amendment that adversely affects
      the
      interest of any of the Certificate Insurer or the Holders of the Insured
      Certificates, with the prior written consent of the Certificate Insurer,
      (i) to cure any ambiguity, (ii) to correct or supplement any
      provisions herein which may be defective or inconsistent with any other
      provisions herein, (iii) to make any other provisions with respect to
      matters or questions arising under this Agreement, which shall not be
      inconsistent with the provisions of this Agreement, or (iv) to conform the
      terms
      hereof to the description thereof provided in the Prospectus; provided,
      however,
      that
      any such action listed in clause (i) through (iii) above shall not
      adversely affect in any material respect the interests of any Certificateholder;
      provided,
      further,
      that
      any such action listed in (i) through (iii) above shall be deemed not to
      adversely affect in any material respect the interests of any Certificateholder,
      if evidenced by (i) written notice to the Depositor, the Seller, the Master
      Servicer, the Securities Administrator, the Credit Risk Manager, any NIMS
      Insurer, the Certificate Insurer and the Trustee from the Rating Agency that
      such action will not result in the reduction or withdrawal of the rating of
      any
      outstanding Class of Certificates with respect to which it is a Rating Agency
      (without regard to the Certificate Insurance Policy) or (ii) an Opinion of
      Counsel to the effect that such amendment shall not adversely affect in any
      material respect the interests of any Certificateholder (without taking into
      account the benefits under the Certificate Insurance Policy), is permitted
      by
      the Agreement and all the conditions precedent, if any, have been complied
      with,
      delivered to the Trustee, the Securities Administrator, the Master Servicer,
      any
      NIMS Insurer and the Certificate Insurer.

     

    In
      addition, this Agreement may be amended from time to time by Seller, the
      Depositor, the Master Servicer, the Securities Administrator, the Credit Risk
      Manager and the Trustee with the consent of any NIMS Insurer, the Majority
      Certificateholders and the Certificate Insurer (if the proposed amendment
      adversely affects in any respect the rights and interest of the Certificate
      Insurer) for the purpose of adding any provisions to or changing in any manner
      or eliminating any of the provisions of this Agreement or of modifying in any
      manner the rights of the Holders of Certificates; provided,
      however,
      that no
      such amendment or waiver shall (x) reduce in any manner the amount of, or
      delay the timing of, payments on the Certificates that are required to be made
      on any Certificate without the consent of the Holder of such Certificate,
      (y) adversely affect in any material respect the interests of the Holders
      of any Class of Certificates in a manner other than as described in clause
      (x)
      above, without the consent of the Holders of Certificates of such Class
      evidencing at least a 662/3%
      Percentage Interest in such Class, or (z) reduce the percentage of Voting
      Rights required by clause (y) above without the consent of the Holders of
      all Certificates of such Class then outstanding. Upon approval of an amendment,
      a copy of such amendment shall be sent to the Rating Agency.

    
      
        
        

      

      
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    Notwithstanding
      any provision of this Agreement to the contrary, each of the Trustee and the
      NIMS Insurer shall not consent to any amendment to this Agreement unless they
      shall have first received an Opinion of Counsel, delivered by and at the expense
      of the Person seeking such Amendment (unless such Person is the Trustee, in
      which case the Trustee shall be entitled to be reimbursed for such expenses
      by
      the Trust Fund pursuant to Section 8.05 hereof), to the effect that such
      amendment will not result in the imposition of a tax on any REMIC created
      hereunder pursuant to the REMIC Provisions or cause any REMIC created hereunder
      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 hereof, such
      amendment is permitted by this Agreement and all conditions precedent, if any,
      have been complied with.

     

    Promptly
      after the execution of any such amendment the Trustee shall furnish, at the
      expense of the Person that requested the amendment if such Person is the Seller
      (but in no event at the expense of the Securities Administrator or the Trustee),
      otherwise at the expense of the Trust Fund, a copy of such amendment and the
      Opinion of Counsel referred to in the immediately preceding paragraph to the
      Master Servicer, the Certificate Insurer, the NIMS Insurer and each Rating
      Agency.

     

    It
      shall
      not be necessary for the consent of Certificateholders under this
      Section 12.01 to approve the particular form of any proposed amendment;
      instead it shall be sufficient if such consent shall approve the substance
      thereof. The manner of obtaining such consents and of evidencing the
      authorization of the execution thereof by Certificateholders shall be subject
      to
      such reasonable regulations as the Trustee may prescribe.

     

    The
      Trustee, the Master Servicer and Securities Administrator may, but shall not
      be
      obligated to, enter into any amendment pursuant to this 12.01 Section that
      affects its rights, duties and immunities under this Agreement or
      otherwise.

     

    SECTION
      12.02. Recordation of Agreement; Counterparts.

     

    To
      the
      extent permitted by applicable law, this Agreement is subject to recordation
      in
      all appropriate public offices for real property records in all the counties
      or
      other comparable jurisdictions in which any or all of the Mortgaged Properties
      are situated, and in any other appropriate public recording office or elsewhere,
      such recordation to be effected by the Trustee at the expense of the Trust
      Fund,
      but only upon direction of Certificateholders accompanied by an Opinion of
      Counsel to the effect that such recordation materially and beneficially affects
      the interests of the Certificateholders and the Certificate
      Insurer.

     

    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 together constitute but one and the same
      instrument.

     

     

    SECTION
      12.03. Limitation on Rights of Certificateholders.

     

    The
      death
      or incapacity of any Certificateholder shall not (i) operate to terminate
      this Agreement or the Trust Fund, (ii) entitle such Certificateholder’s
      legal representatives or heirs to claim an accounting or to take any action
      or
      proceeding in any court for a partition or winding up of the Trust Fund or
      (iii) otherwise affect the rights, obligations and liabilities of the
      parties hereto or any of them.

    
      
        
        

      

      
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    Except
      as
      expressly provided for herein, no Certificateholder shall have any right to
      vote
      or in any manner otherwise control the operation and management of the Trust
      Fund, or the obligations of the parties hereto, nor shall anything herein set
      forth or contained in the terms of the Certificates be construed so as to
      constitute the Certificateholders from time to time as partners or members
      of an
      association; nor shall any Certificateholder be under any liability to any
      third
      person by reason of any action taken by the parties to this Agreement pursuant
      to any provision hereof.

     

    No
      Certificateholder shall have any right by virtue of any provision of this
      Agreement to institute any suit, action or proceeding in equity or at law upon
      or under or with respect to this Agreement, unless such Holder previously shall
      have given to the Trustee a written notice of default and of the continuance
      thereof, as hereinbefore provided, and unless also the Holders of Certificates
      entitled to at least 25% of the Voting Rights shall, with the prior written
      consent of any NIMS Insurer, have made written request upon the Trustee to
      institute such action, suit or proceeding in its own name as Trustee hereunder
      and shall have offered to the Trustee such reasonable indemnity as it may
      require against the costs, expenses and liabilities to be incurred therein
      or
      thereby, and the Trustee for 15 days after its receipt of such notice,
      request and offer of indemnity, shall have neglected or refused to institute
      any
      such action, suit or proceeding and no direction inconsistent with such written
      request has been given the Trustee by such Certificateholder or any NIMS
      Insurer. It is understood and intended, and expressly covenanted by each
      Certificateholder with every other Certificateholder, any NIMS Insurer, the
      Securities Administrator and the Trustee, that no one or more Holders of
      Certificates shall have any right in any manner whatever by virtue of any
      provision of this Agreement to affect, disturb or prejudice the rights of the
      Holders of any other of such Certificates or the rights of any NIMS Insurer,
      or
      to obtain or seek to obtain priority over or preference to any other such Holder
      or any NIMS Insurer, which priority or preference is not otherwise provided
      for
      herein, 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 12.03, each and every Certificateholder, the NIMS Insurer and the
      Trustee shall be entitled to such relief as can be given either at law or in
      equity.

     

    By
      accepting its Insured Certificate, each Holder of an Insured Certificate agrees
      that, unless a Certificate Insurer Default exists and is continuing, the
      Certificate Insurer shall have the right to exercise all rights of the Holders
      of the Insured Certificates under this Agreement (other than the right to
      receive distributions on the Insured Certificates) without any further consent
      of the Holders of the Insured Certificates and the Holders of the Insured
      Certificates shall exercise any such rights only upon the written consent of
      the
      Certificate Insurer; provided,
      however,
      each
      Holder of an Insured Certificate and the Certificate Insurer will have the
      right
      to receive statements and reports hereunder. Notwithstanding the foregoing,
      the
      Certificate Insurer shall have no power without the consent of the Holder of
      each Insured Certificate affected thereby to: (i) reduce in any manner the
      amount of, or delay the timing of, distributions of principal or interest
      required to be made hereunder or reduce the Percentage Interest of the Holders
      of the Insured Certificates, the applicable Pass-Through Rate or the Termination
      Price with respect to any of the Insured Certificates; (ii) reduce the
      percentage of Percentage Interests specified in Section 12.01 which are required
      to amend this Agreement; (iii) create or permit the creation of any lien against
      any part of the Trust Fund; (iv) modify any provision in any way which would
      permit an earlier retirement of the Insured Certificates; or (v) amend this
      sentence.

    
      
        
        

      

      
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    SECTION
      12.04. Governing Law; Jurisdiction.

     

    THIS
      AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF
      THE
      STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS (OTHER
      THAN SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW), AND THE OBLIGATIONS, RIGHTS
      AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH
      SUCH LAWS.

     

    SECTION
      12.05. Notices.

     

    All
      directions, demands and notices hereunder shall be in writing and shall be
      deemed to have been duly given if personally delivered at or mailed by first
      class mail, postage prepaid, or by express delivery service, to (a) in the
      case of the Seller, to Greenwich Capital Financial Products, Inc.,
      600 Steamboat Road, Greenwich, Connecticut 06830, Attention: General
      Counsel (telecopy number (203) 618-2132), or such other address or telecopy
      number as may hereafter be furnished to the Depositor, the Master Servicer,
      the
      Certificate Insurer, the Securities Administrator and the Trustee in writing
      by
      the Seller, (b) in the case of the Trustee, to the Corporate Trust Office or
      such other address or telecopy number as may hereafter be furnished to the
      Depositor, the Master Servicer, the Securities Administrator, the Certificate
      Insurer and the Seller in writing by the Trustee, (c) in the case of the
      Depositor, to Greenwich Capital Acceptance, Inc., 600 Steamboat Road,
      Greenwich, Connecticut 06830, Attention: Legal (telecopy number (203) 618-2132),
      or
      such other address or telecopy number as may be furnished to the Seller, the
      Master Servicer, the Securities Administrator, the Certificate Insurer and
      the
      Trustee in writing by the Depositor; (d) in the case of the Master Servicer
      or
      Securities Administrator, for certificate transfer purposes, at its Corporate
      Trust Office and for all other purposes at P.O. Box 98, Columbia, Maryland
      21046, or for overnight delivery, at 9062 Old Annapolis Road, Columbia, Maryland
      21045 (Attention: DSLA Mortgage Loan Trust 2006-AR2), Facsimile no.: (410)
      715-2380, or such other address or telecopy number as may be furnished to the
      Depositor, the Seller, the Certificate Insurer and the Trustee in writing by
      the
      Master Servicer or the Securities Administrator, as applicable; (e) in the
      case
      of the Credit Risk Manager, Clayton Fixed Income Services Inc., 1700 Lincoln
      Street, Suite 1600, Denver, Colorado 80203, Attention: General Counsel, and
      (f)
      in the case of the Certificate Insurer, Ambac Assurance Corporation, One State
      Street Plaza, New York, New York 10004, Attention: DSLA 2006-AR2 (telecopy
      number 212-208-3547),
      or
      such other address or telecopy number as may be furnished to the Depositor,
      the
      Seller, the Master Servicer, the Securities Administrator and the Trustee in
      writing by the Certificate Insurer. Any notice required or permitted to be
      mailed to a Certificateholder shall be given by first class mail, postage
      prepaid, at the address of such Holder as shown in the Certificate Register.
      Notice of any Event of Default shall be given by telecopy and by certified
      mail.
      Any notice so mailed within the time prescribed in this Agreement shall be
      conclusively presumed to have duly been given when mailed, whether or not the
      Certificateholder receives such notice. A copy of any notice required to be
      telecopied hereunder shall also be mailed to the appropriate party in the manner
      set forth above. Any notice required to be delivered by the Securities
      Administrator to the Depositor pursuant to Section 3.19 may be delivered by
      the
      Securities Administrator, notwithstanding any provision of this Agreement to
      the
      contrary, to Greenwich Capital Acceptance, Inc., 600 Steamboat Road,
      Greenwich, Connecticut 06830, Attention: Mark Hagelin (telephone number (203)
      618-2596; fax number (203) 422-4284; e-mail mark.hagelin@gcm.com), or such
      other
      address or telecopy number as may be furnished to the Securities Administrator
      in writing by the Depositor.

    
      
        
        

      

      
        161

        
          

        

      

       

    

     

    SECTION
      12.06. Severability of Provisions.

     

    If
      any
      one or more of the covenants, agreements, provisions or terms of this Agreement
      shall for any reason whatsoever be held invalid, then such covenants,
      agreements, provisions or terms shall be deemed severable from the remaining
      covenants, agreements, provisions or terms of this Agreement and shall in no
      way
      affect the validity or enforceability of the other provisions of this Agreement
      or of the Certificates or the rights of the Holders thereof.

     

    SECTION
      12.07. Article and Section References.

     

    All
      article and section references used in this Agreement, unless otherwise
      provided, are to articles and sections in this Agreement.

     

    SECTION
      12.08. Notice to the Rating Agencies.

     

    (a) The
      Securities Administrator shall be obligated to use its best reasonable efforts
      promptly to provide notice to the Rating Agencies, the Certificate Insurer
      and
      any NIMS Insurer with respect to each of the following of which a Responsible
      Officer of the Securities Administrator has actual knowledge:

     

    (i) any
      material change or amendment to this Agreement;

     

    (ii) the
      occurrence of any Event of Default that has not been cured or
      waived;

     

    (iii) the
      resignation or termination of the Master Servicer, the Securities Administrator
      or the Trustee;

     

    (iv) the
      final
      payment to Holders of the Certificates of any Class; and

     

    (v) any
      change in the location of any Account.

     

    (b) If
      the
      Trustee is acting as a successor Master Servicer pursuant to Section 7.02
      hereof, the Trustee shall notify the Rating Agencies of any event that would
      result in the inability of the Trustee to make Advances as successor Master
      Servicer:

     

    (c) The
      Master Servicer shall promptly furnish to each Rating Agency copies of the
      following, unless such documents were made available on the Securities
      Administrator’s website:

     

    
      
        
        

      

      
        162

        
          

        

      

       

    

     

    (i) each
      annual statement as to compliance described in Section 3.17 hereof;

     

    (ii) each
      annual assessment of compliance and attestation report described in Section
      3.16
      hereof; and

     

    (iii) each
      notice delivered pursuant to Section 5.05(b) hereof which relates to the fact
      that the Master Servicer has not made an Advance.

     

    (d) All
      notices to the Rating Agencies provided for in this Agreement shall be in
      writing and sent by first class mail, telecopy or overnight courier, as
      follows:

     

    If
      to
      DBRS, to:

    

    Dominion
      Bond Rating Service, Inc.

    101
      North
      Wacker Drive, Suite 100

    Chicago,
      Illinois 60606

      

    If
      to
      Moody’s, to:

    

    Moody’s
      Investors Service, Inc.

    99
      Church
      Street 

    New
      York,
      New York 10007

    Attention:
      Residential Mortgages

    

    If
      to
      S&P, to:

    

    Standard
      & Poor’s Ratings Services,

    a
      division of The McGraw-Hill Companies, Inc.

    55
      Water
      Street

    New
      York,
      New York 10041

    Facsimile
      number: (212) 438-2661

     

    SECTION
      12.09. Further Assurances.

     

    Notwithstanding
      any other provision of this Agreement, neither the Regular Certificateholders
      nor the Trustee shall have any obligation to consent to any amendment or
      modification of this Agreement unless they have been provided reasonable
      security or indemnity against their out-of-pocket expenses (including reasonable
      attorneys’ fees) to be incurred in connection therewith.

     

    SECTION
      12.10. Benefits of Agreement.

     

    Nothing
      in this Agreement or in the Certificates, expressed or implied, shall give
      to
      any Person, other than the Certificateholders and the parties hereto and their
      successors hereunder, any benefit or any legal or equitable right, remedy or
      claim under this Agreement.

    
      
        
        

      

      
        163

        
          

        

      

       

    

     

    The
      Certificate Insurer is an intended third-party beneficiary of this Agreement
      with respect to the rights of the Classes of Insured Certificates. Any right
      conferred to the Certificate Insurer shall be suspended after the occurrence
      and
      during the continuation of a Certificate Insurer Default. During any period
      of
      suspension, the Certificate Insurer's rights hereunder shall vest in the Holders
      of the Insured Certificates (to the extent such Holders otherwise has such
      rights hereunder). At such time as the Class Principal Balance of the Insured
      Certificates has been reduced to zero and the Certificate Insurer has been
      reimbursed for all amounts to which it is entitled hereunder, the Certificate
      Insurer's rights hereunder shall terminate.

     

    The
      Depositor shall promptly notify the Custodian, the Securities Administrator
      and
      the Trustee in writing of the issuance of any Class of NIMS Securities and
      the
      identity of any related NIMS Insurer. Thereafter, the NIMS Insurer shall be
      deemed a third-party beneficiary of this Agreement to the same extent as if
      it
      were a party hereto, and shall be subject to and have the right to enforce
      the
      provisions of this Agreement so long as the NIMS Securities remaining
      outstanding or the NIMS Insurer is owed amounts in respect of its guarantee
      of
      payment of such NIMS Securities. Nothing in this Agreement or in the
      Certificates, express or implied, shall give to any Person, other than the
      parties to this Agreement and their successors hereunder, the Holders of the
      Certificates and the NIMS Insurer, any benefit or any legal or equitable right,
      power, remedy or claim under this Agreement.

     

    SECTION
      12.11. 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 the Certificateholders
      may be embodied in and evidenced by one or more instruments of substantially
      similar tenor signed by such Certificateholders in person or by agent duly
      appointed in writing, and such action shall become effective when such
      instrument or instruments are delivered to the Trustee or the Securities
      Administrator and, when expressly required under this Agreement, to the Master
      Servicer. Such instrument or instruments (and the action embodied therein and
      evidenced thereby) are herein sometimes referred to as the “act” of the
      Certificateholders signing such instrument or instruments. 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 Trust Fund, if made in the manner provided in this
      Section 12.11.

     

    (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 the 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. Whenever 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
      authority.

     

    (c) Any
      request, demand, authorization, direction, notice, consent, waiver or other
      action by any Certificateholder shall bind every future Holder of such
      Certificate and the Holder of every Certificate issued upon the registration
      of
      transfer thereof or in exchange therefor or in lieu thereof, in respect of
      anything done, omitted or suffered to be done by the Trustee or the Trust Fund
      in reliance thereon, whether or not notation of such action is made upon such
      Certificate.

    
      
        
        

      

      
        164

        
          

        

      

       

    

     

    SECTION
      12.12. 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
      12.13. Provision of Information.

     

    For
      so
      long as any of the Certificates of any Class are “restricted securities” within
      the meaning of Rule 144(a)(3) under the Securities Act, the Depositor agrees
      to
      provide to any Certificateholders, any NIM Security Holder and to any
      prospective purchaser of Certificates designated by such holder, upon the
      request of such holder or prospective purchaser, any information required to
      be
      provided to such holder or prospective purchaser to satisfy the condition set
      forth in Rule 144A(d)(4) under the Securities Act. 

     

    The
      Securities Administrator shall provide to any person to whom a Prospectus was
      delivered by Greenwich Capital Markets, Inc. (as identified by Greenwich Capital
      Markets, Inc.), upon the request of such person specifying the document or
      documents requested (and certifying that it is a Person entitled hereunder),
      (i)
      a copy (excluding exhibits) of any report on Form 8-K, Form 10-D or Form 10-K
      filed with the Securities and Exchange Commission pursuant to this Agreement
      and
      (ii) a copy of any other document incorporated by reference in the Prospectus
      (to the extent in the Securities Administrator’s possession). Any reasonable
      out-of-pocket expenses incurred by the Securities Administrator in providing
      copies of such documents shall be reimbursed by the Depositor.

    
      
        
        

      

      
        165

        
          

        

      

       

    

    IN
      WITNESS WHEREOF, the parties hereto have caused their names to be signed hereto
      by their respective officers thereunto duly authorized, all as of the day and
      year first above written.

    
      	 	 	 
	 	
              GREENWICH
                CAPITAL ACCEPTANCE, INC.,

              as
                Depositor

            
	 
 	 
 	 
 
	
            	By:  	/s/
              Shakti Radhakishun
	 	
              
                

              

              Name:
                Shakti Radhakishun

              
                Title:
                  Senior Vice President

              

            

    

     

    
      	 	 	 
	 	
              GREENWICH
                CAPITAL FINANCIAL 

              PRODUCTS,
                INC., as Seller

            
	 
 	 
 	 
 
	
            	By:  	/s/
              Shakti Radhakishun
	 	
              
                

              

              Name:
                Shakti Radhakishun

              
                Title:
                  Senior Vice President

              

            

    

     

    
      	 	 	 
	 	
              
                WELLS
                  FARGO BANK, N.A., 

                as
                  Master Servicer

              

            
	 
 	 
 	 
 
	
            	By:  	/s/
              Graham Oglesby
	 	
              
                

              

              Name:
                Graham Oglesby

              
                Title:
                  Assistant Vice
                  President

              

            

 

    
      	 	 	 
	 	
              
                WELLS
                  FARGO BANK, N.A., 

                as
                  Securities Administrator

              

            
	 
 	 
 	 
 
	
            	By:  	/s/
              Graham Oglesby
	 	
              
                

              

              Name:
                Graham Oglesby

              
                Title:
                  Assistant Vice President

              

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

       

    

    
      	 	 	 
	 	
              
                DEUTSCHE
                  BANK NATIONAL TRUST 

                COMPANY,
                  as Trustee and Custodian

              

            
	 
 	 
 	 
 
	
            	By:  	/s/
              Ronaldo Reyes
	 	
              
                

              

              Name:
                Ronaldo Reyes

              
                Title:
                  Vice President

              

            

    

    
      	 	 	 
	
            	By:  	/s/
              Karlene Benvenuto
	 	
              
                

              

              Name:
                Karlene Benvenuto

              
                Title:
                  Authorized Signer

              

            

    

     

    
      	 	 	 
	 	
              
                CLAYTON
                  FIXED INCOME SERVICES INC., 

                as
                  Credit Risk Manager

              

            
	 
 	 
 	 
 
	
            	By:  	/s/
              Kevin J. Kanouff
	 	
              
                

              

              Name:
                Kevin J. Kanouff

              
                Title:
                  President and General Counsel

              

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

       

    

    SCHEDULE
      I

    

    MORTGAGE
      LOAN SCHEDULE

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