Document:

AMERICAN HOME MORTGAGE INVESTMENT TRUST 2005-2

                                     ISSUER

                              WELL FARGO BANK, N.A.

                            SECURITIES ADMINISTRATOR

                                       AND

                      DEUTSCHE BANK NATIONAL TRUST COMPANY

                                INDENTURE TRUSTEE

                                    INDENTURE

                            DATED AS OF JUNE 22, 2005

                              MORTGAGE-BACKED NOTES

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                                              TABLE OF CONTENTS

SECTION

                                                  ARTICLE I

                                                 Definitions

<S>                   <C>
   Section 1.01       Definitions........................................................................
   Section 1.02       Incorporation by Reference of Trust Indenture Act..................................
   Section 1.03       Rules of Construction..............................................................

                                                 ARTICLE II

                                         Original Issuance of Notes

   Section 2.01       Form...............................................................................
   Section 2.02       Execution, Authentication and Delivery.............................................
   Section 2.03       Acceptance of Mortgage Loans by Indenture Trustee..................................
   Section 2.04       Acceptance of Derivative Contracts by Indenture Trustee............................
   Section 2.05       Conveyance of the Group I Subsequent Mortgage Loans................................
   Section 2.06       Conveyance of the Group II Subsequent Mortgage Loans...............................
   Section 2.07       Conveyance of the Group III Subsequent Mortgage Loans..............................
   Section 2.08       Conveyance of the Group IV Subsequent Mortgage Loans...............................
   Section 2.09       Conveyance of the Group V Subsequent Mortgage Loans.....---------------------------
   Section 2.10       Conveyance of the Group VI Subsequent HELOC Mortgage Loans.........................
   Section 2.11       Conveyance of the Group VII Subsequent Mortgage Loans..............................
   Section 2.12       Conveyance of the Group VIII Subsequent Mortgage Loans.............................
   Section 2.13       Conveyance of the Group VI Subsequent HELOC Mortgage Loans.........................

                                                 ARTICLE III

                                                  Covenants

   Section 3.01       Collection of Payments with respect to the Mortgage Loans and HELOC Mortgage Loans.
   Section 3.02       Maintenance of Office or Agency....................................................
   Section 3.03       Money for Payments To Be Held in Trust; Paying Agent...............................
   Section 3.04       Existence..........................................................................
   Section 3.05       Payment of Group I, Group II, Group III, Group IV, Group V, Group VI and Group VII
                      Available Funds....................................................................
   Section 3.06       Payment of Group VIII Available Funds..............................................
   Section 3.07       Payment of Principal and Interest on the Class VI-A Notes..........................
   Section 3.08       Rapid Amortization Events..........................................................
   Section 3.09       Payments to the Class N Notes......................................................
   Section 3.10       Other Matters With Respect to the Notes............................................
   Section 3.11       Protection of Trust Estate.........................................................
   Section 3.12       Opinions as to Trust Estate........................................................
   Section 3.13       Performance of Obligations.........................................................
   Section 3.14       Negative Covenants.................................................................
   Section 3.15       Annual Statement as to Compliance..................................................
   Section 3.16       Representations and Warranties Concerning the Mortgage Loans.......................
   Section 3.17       Amendments to Servicing Agreement..................................................
   Section 3.18       Servicers as Agent and Bailee of the Indenture Trustee.............................
   Section 3.19       Investment Company Act.............................................................
   Section 3.20       Issuer May Consolidate, etc........................................................
   Section 3.21       Successor or Transferee............................................................
   Section 3.22       No Other Business..................................................................
   Section 3.23       No Borrowing.......................................................................
   Section 3.24       Guarantees, Loans, Monthly Advances and Other Liabilities..........................
   Section 3.25       Capital Expenditures...............................................................
   Section 3.26       Determination of Note Interest Rate................................................
   Section 3.27       Restricted Payments................................................................
   Section 3.28       Notice of Events of Default........................................................
   Section 3.29       Further Instruments and Acts.......................................................
   Section 3.30       Statements to Noteholders..........................................................
   Section 3.31       Interest Coverage Accounts.........................................................
   Section 3.32       The Pre-Funding Accounts...........................................................
   Section 3.33       Grant of the Subsequent Mortgage Loans and Subsequent HELOC Mortgage Loans.........
   Section 3.34       Replacement Derivative Contracts...................................................
   Section 3.35       Payments Under the Insurance Policy................................................
   Section 3.36       Replacement Insurance Policy.......................................................
   Section 3.37       Certain Representations Regarding the Trust Estate.................................
   Section 3.38       Allocation of Realized Losses......................................................
   Section 3.39       Obligations of the Securities Administrator with respect to the Derivative
                      Contracts..........................................................................
   Section 3.40       Reserve Fund.......................................................................

                                                 ARTICLE IV

                             The Notes; Satisfaction and Discharge of Indenture

   Section 4.01       The Notes..........................................................................
   Section 4.02       Registration of and Limitations on Transfer and Exchange of Notes; Appointment
                      Note Registrar and Certificate Registrar...........................................
   Section 4.03       Mutilated, Destroyed, Lost or Stolen Notes.........................................
   Section 4.04       Persons Deemed Owners..............................................................
   Section 4.05       Cancellation.......................................................................
   Section 4.06       Book-Entry Notes...................................................................
   Section 4.07       Notices to Depository..............................................................
   Section 4.08       Definitive Notes...................................................................
   Section 4.09       Tax Treatment......................................................................
   Section 4.10       Satisfaction and Discharge of Indenture............................................
   Section 4.11       Application of Trust Money.........................................................
   Section 4.12       Subrogation and Cooperation........................................................
   Section 4.13       Repayment of Monies Held by Paying Agent...........................................
   Section 4.14       Temporary Notes....................................................................
   Section 4.15       Representation Regarding ERISA.....................................................

                                                  ARTICLE V

                                            Default and Remedies

   Section 5.01       Events of Default..................................................................
   Section 5.02       Acceleration of Maturity; Rescission and Annulment.................................
   Section 5.03       Collection of Indebtedness and Suits for Enforcement by Indenture Trustee..........
   Section 5.04       Remedies; Priorities...............................................................
   Section 5.05       Optional Preservation of the Trust Estate..........................................
   Section 5.06       Limitation of Suits................................................................
   Section 5.07       Unconditional Rights of Noteholders To Receive Principal and Interest..............
   Section 5.08       Restoration of Rights and Remedies.................................................
   Section 5.09       Rights and Remedies Cumulative.....................................................
   Section 5.10       Delay or Omission Not a Waiver.....................................................
   Section 5.11       Control By Noteholders.............................................................
   Section 5.12       Waiver of Past Defaults............................................................
   Section 5.13       Undertaking for Costs..............................................................
   Section 5.14       Waiver of Stay or Extension Laws...................................................
   Section 5.15       Sale of Trust Estate...............................................................
   Section 5.16       Action on Notes....................................................................
   Section 5.17       Performance and Enforcement of Certain Obligations.................................

                                                 ARTICLE VI

                           The Indenture Trustee AND THE SECURITIES ADMINISTRATOR

   Section 6.01       Duties of Indenture Trustee and Securities Administartor...........................
   Section 6.02       Rights of Indenture Trustee and the Securities Administrator.......................
   Section 6.03       Individual Rights of Indenture Trustee.............................................
   Section 6.04       Indenture Trustee's Disclaimer.....................................................
   Section 6.05       Notice of Event of Default.........................................................
   Section 6.06       Reports by Securities Administrator to Holders and Tax Administration..............
   Section 6.07       Compensation and Indemnity.........................................................
   Section 6.08       Replacement of Indenture Trustee and the Securities Administrator..................
   Section 6.09       Successor Indenture Trustee and Successor Securities Administrator by Merger.......
   Section 6.10       Appointment of Co-Indenture Trustee or Separate Indenture Trustee..................
   Section 6.11       Eligibility; Disqualification......................................................
   Section 6.12       Preferential Collection of Claims Against Issuer...................................
   Section 6.13       Representations and Warranties.....................................................
   Section 6.14       Directions to Indenture Trustee....................................................
   Section 6.15       The Agents.........................................................................
   Section 6.16       Administrative Duties..............................................................
   Section 6.17       Records............................................................................
   Section 6.18       Additional Information to be Furnished.............................................
   Section 6.19       Execution of Derivative Contracts and other Documents..............................
   Section 6.20       Indenture Trustee's Application For Instructions From the Issuer...................
   Section 6.21       Limitation of Liability............................................................
   Section 6.22       Assignment of Rights, Not Assumption of Duties.....................................

                                                 ARTICLE VII

                                       Noteholders' Lists and Reports

   Section 7.01       Issuer To Furnish Indenture Trustee Names and Addresses of Noteholders.............
   Section 7.02       Preservation of Information; Communications to Noteholders.........................
   Section 7.03       Reports of Issuer..................................................................
   Section 7.04       Reports by Indenture Trustee.......................................................
   Section 7.05       Statements to Noteholders..........................................................

                                                ARTICLE VIII

                                    Accounts, Disbursements and Releases

   Section 8.01       Collection of Money................................................................
   Section 8.02       Trust Accounts.....................................................................
   Section 8.03       Officer's Certificate..............................................................
   Section 8.04       Termination Upon Distribution to Noteholders.......................................
   Section 8.05       Release of Trust Estate............................................................
   Section 8.06       Surrender of Notes Upon Final Payment..............................................
   Section 8.07       Optional Redemption of the Notes...................................................

                                                 ARTICLE VI

                                           Supplemental Indentures

   Section 9.01       Supplemental Indentures Without Consent of Noteholders.............................
   Section 9.02       Supplemental Indentures With Consent of Noteholders................................
   Section 9.03       Execution of Supplemental Indentures...............................................
   Section 9.04       Effect of Supplemental Indenture...................................................
   Section 9.05       Conformity with Trust Indenture Act................................................
   Section 9.06       Reference in Notes to Supplemental Indentures......................................

                                                  ARTICLE X

                                                Miscellaneous

   Section 10.01      Compliance Certificates and Opinions, etc..........................................
   Section 10.02      Form of Documents Delivered to Indenture Trustee...................................
   Section 10.03      Acts of Noteholders................................................................
   Section 10.04      Notices etc., to Indenture Trustee, Issuer, Securities Administrator, Insurer
                      and Rating Agencies................................................................
   Section 10.05      Notices to Noteholders; Waiver.....................................................
   Section 10.06      Conflict with Trust Indenture Act..................................................
   Section 10.07      Effect of Headings.................................................................
   Section 10.08      Successors and Assigns.............................................................
   Section 10.09      Separability.......................................................................
   Section 10.10      Benefits of Indenture..............................................................
   Section 10.11      Legal Holidays.....................................................................
   Section 10.12      GOVERNING LAW......................................................................
   Section 10.13      Counterparts.......................................................................
   Section 10.14      Recording of Indenture.............................................................
   Section 10.15      Issuer Obligation..................................................................
   Section 10.16      No Petition........................................................................
   Section 10.17      Inspection.........................................................................
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                    EXHIBITS

         Exhibit A-1   --    Form of Class [_-A-_] Notes
         Exhibit A-2   --    Form of Class [[__]-]M-[_] Notes
         Exhibit A-3   --    Form of Class [[__]-]B Notes
         Exhibit A-4   --    Form of Class N Notes
         Exhibit B     --    Mortgage Loan Schedule
         Exhibit C     --    Form of Cap Contract
         Exhibit D     --    Form of Corridor Contract
         Exhibit E     --    Form of Insurance Policy
         Exhibit F     --    Form of Subsequent Transfer Instrument
         Exhibit G     --    Form of Addition Notice
         Exhibit H     --    Form of Initial Certification
         Exhibit I     --    Form of Final Certification
         Exhibit J     --    Form of Request for Release
         Exhibit K     --    Form of Rule 144A Investment Representation
         Exhibit L     --    Form of Certificate of Non-Foreign Status
         Exhibit M     --    Form of Investment Letter
         Exhibit N     --    Form of Transferor Certificate
         Exhibit O     --    Form of ERISA Letter
         Exhibit P     --    Form of Transferee Certificate
         Exhibit Q     --    Form of Lender Transferor Certificate

         Appendix A    --    Definitions

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                  This Indenture, dated as of June 22, 2005, is entered into
among American Home Mortgage Investment Trust 2005-2, a Delaware statutory
trust, as Issuer (the "Issuer"), Deutsche Bank National Trust Company, a
national banking association, as Indenture Trustee (the "Indenture Trustee"),
and Wells Fargo Bank, N.A., a national banking association, as Securities
Administrator (the "Securities Administrator").

                                WITNESSETH THAT:

                  Each party hereto agrees as follows for the benefit of the
other party and for the equal and ratable benefit of the Holders of the Issuer's
Mortgage-Backed Notes, Series 2005-2 (the "Notes").

                                 GRANTING CLAUSE

                  The Issuer hereby Grants to the Indenture Trustee at the
Closing Date, as trustee for the benefit of the Holders of the Notes and the
Insurer, all of the Issuer's right, title and interest in and to, whether now
existing or hereafter created, (a) the Mortgage Loans, Eligible Substitute
Mortgage Loans and the proceeds thereof and all rights under the Related
Documents; (b) the HELOC Mortgage Loans, related Eligible Substitute Mortgage
Loans and the proceeds thereof and all rights under the Related Documents; (c)
(i) with respect to the Holders of the Class VI-A Notes, the Insurance Policy,
and (ii) with respect to the Holders of the Class V-A-4-D Notes, the Note
Insurance Policy; (d) additional Draws under the HELOC Mortgage Loans conveyed
to the Trust; (e) the rights of the Issuer under the Cap Contract and the
Corridor Contract and all payments received under the Cap Contract and the
Corridor Contract; (f) all funds on deposit from time to time in the Collection
Account allocable to the Mortgage Loans and HELOC Mortgage Loans excluding any
investment income from such funds; (g) all funds on deposit from time to time in
the Payment Account and in all proceeds thereof; (h) all funds on deposit from
time to time in the Pre-Funding Accounts and the Interest Coverage Accounts and
in all proceeds thereof; (i) all rights under (I) the Mortgage Loan Purchase
Agreement as assigned to the Issuer, with respect to the (a) Initial Mortgage
Loans, and each Group I, Group II-C, Group II-NC, Group III, Group IV and Group
V Subsequent Mortgage Loan Purchase Agreements as assigned to the Issuer, with
respect to the related Group I, Group II-C, Group II-NC, Group III, Group IV and
Group V Subsequent Mortgage Loans and (b) Initial HELOCs, and each Group VI
Subsequent HELOC Mortgage Loan Purchase Agreements as assigned to the Issuer,
with respect to the related Group VI Subsequent HELOC Mortgage Loans, (II) the
Servicing Agreements and any Subservicing Agreements and (III) any title, hazard
and primary insurance policies with respect to the Mortgaged Properties; and (j)
all present and future claims, demands, causes and choses in action in respect
of any or all of the foregoing and all payments on or under, and all proceeds of
every kind and nature whatsoever in respect of, any or all of the foregoing and
all payments on or under, and all proceeds of every kind and nature whatsoever
in the conversion thereof, voluntary or involuntary, into cash or other liquid
property, all cash proceeds, accounts, accounts receivable, notes, drafts,
acceptances, checks, deposit accounts, rights to payment of any and every kind,
and other forms of obligations and receivables, instruments and other property
which at any time constitute all or part of or are included in the proceeds of
any of the foregoing (collectively, the "Trust Estate" or the "Collateral").

                  The foregoing Grant is made in trust to secure the payment of
principal of and interest on, and any other amounts owing in respect of, the
Notes, equally and ratably without prejudice (except as otherwise provided
herein), priority or distinction, and to secure compliance with the provisions
of this Indenture, all as provided in this Indenture.

                  The Indenture Trustee, as trustee on behalf of the Holders of
the Notes and the Insurer, acknowledges such Grant, accepts the trust under this
Indenture in accordance with the provisions hereof and agrees to perform its
duties as Indenture Trustee as required herein.

                  The Indenture Trustee agrees that it will hold the Insurance
Policy in trust and that it will hold any proceeds of any claim made upon the
Insurance Policy solely for the use and benefit of the Holders of the Class VI-A
Notes in accordance with the terms hereof and the terms of the Insurance Policy.

                  The Indenture Trustee agrees that it will hold the Note
Insurance Policy in trust and that it will hold any proceeds of any claim made
upon the Note Insurance Policy solely for the use and benefit of the Holders of
the Class V-A-4-D Notes in accordance with the terms hereof and the terms of the
Note Insurance Policy.

<PAGE>

                                    ARTICLE I

                                   DEFINITIONS

         Section 1.01 DEFINITIONS. For all purposes of this Indenture, except as
otherwise expressly provided herein or unless the context otherwise requires,
capitalized terms used but not otherwise defined herein shall have the meanings
assigned to such terms in the Definitions attached hereto as Appendix A which is
incorporated by reference herein. All other capitalized terms used herein shall
have the meanings specified herein.

         Section 1.02 INCORPORATION BY REFERENCE OF TRUST INDENTURE ACT.
Whenever this Indenture refers to a provision of the Trust Indenture Act (the
"TIA"), the provision is incorporated by reference in and made a part of this
Indenture. The following TIA terms used in this Indenture have the following
meanings:

                  "Commission" means the Securities and Exchange Commission.

                  "indenture securities" means the Notes.

                  "indenture security holder" means a Noteholder.

                  "indenture to be qualified" means this Indenture.

                  "indenture trustee" or "institutional trustee" means the
Indenture Trustee.

                  "obligor" on the indenture securities means the Issuer and any
other obligor on the indenture securities.

         All other TIA terms used in this Indenture that are defined by the TIA,
defined by TIA reference to another statute or defined by Commission rules have
the meanings assigned to them by such definitions.

         Section 1.03 RULES OF CONSTRUCTION. Unless the context otherwise
requires:

                  (i) a term has the meaning assigned to it;

                  (ii) an accounting term not otherwise defined has the meaning
         assigned to it in accordance with generally accepted accounting
         principles as in effect from time to time;

                  (iii) "or" is not exclusive;

                  (iv) "including" means including without limitation;

                  (v) words in the singular include the plural and words in the
         plural include the singular; and

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

<PAGE>

                                   ARTICLE II

                           ORIGINAL ISSUANCE OF NOTES

         Section 2.01 FORM. The Class A, Class M, Class B, Class V-M, Class V-B
and Class N Notes, together with the Indenture Trustee's certificate of
authentication, shall be in substantially the form set forth in Exhibits A-1,
A-2, A-3 and A-4 to this Indenture, respectively, with such appropriate
insertions, omissions, substitutions and other variations as are required or
permitted by this Indenture.

         The Notes shall be typewritten, printed, lithographed or engraved or
produced by any combination of these methods (with or without steel engraved
borders).

         The terms of the Notes set forth in Exhibits A-1, A-2, A-3 and A-4 to
this Indenture are part of the terms of this Indenture.

         Section 2.02 EXECUTION, AUTHENTICATION AND DELIVERY. The Notes shall be
executed on behalf of the Issuer by any of its Authorized Officers. The
signature of any such Authorized Officer on the Notes may be manual or
facsimile.

         Notes bearing the manual or facsimile signature of individuals who were
at any time Authorized Officers of the Issuer shall bind the Issuer,
notwithstanding that such individuals or any of them have ceased to hold such
offices prior to the authentication and delivery of such Notes or did not hold
such offices at the date of such Notes.

         The Indenture Trustee shall upon Issuer Request authenticate and
deliver each Class of Notes for original issue in an aggregate initial principal
amount equal to the Initial Note Principal Balance for such Class of Notes.

         Each of the Notes shall be dated the date of its authentication. The
Notes shall be issuable as registered Notes and shall be issuable in the minimum
initial Note Principal Balances of $25,000 and in integral multiples of $1 in
excess thereof, except with respect to the Class VI-A Notes. The Class VI-A
Notes shall be issuable in the minimum initial Note Principal Balances of
$25,000 and in integral multiples of $1,000 in excess thereof.

         No Note shall be entitled to any benefit under this Indenture or be
valid or obligatory for any purpose, unless there appears on such Note a
certificate of authentication substantially in the form provided for herein
executed by the Indenture Trustee by the manual signature of one of its
authorized signatories, and such certificate upon any Note shall be conclusive
evidence, and the only evidence, that such Note has been duly authenticated and
delivered hereunder.

         Section 2.03 ACCEPTANCE OF MORTGAGE LOANS BY INDENTURE TRUSTEE.

         (a) The Indenture Trustee shall acknowledge receipt of, subject to the
exceptions the Indenture Trustee notes pursuant to the procedures described
below, the documents (or certified copies thereof) referred to in Section 2.1(b)
of the Mortgage Loan Purchase Agreement and the Subsequent Mortgage Loan
Purchase Agreements, and to declare that it holds and will continue to hold
those documents and any amendments, replacements or supplements thereto and all
other assets of the Trust Estate, in trust for the use and benefit of all
present and future Holders of the Notes and the Insurer. No later than the
Closing Date, with respect to the Initial Mortgage Loans and Initial HELOCs or
the applicable Subsequent Transfer Date, with respect to the related Group I,
Group II-C, Group II-NC, Group III, Group IV and Group V Subsequent Mortgage
Loans and the Group VI Subsequent HELOC Mortgage Loans (or, with respect to any
Eligible Substitute Mortgage Loan, within 5 days after the receipt by the
Indenture Trustee thereof and, with respect to any documents received after the
Closing Date, promptly thereafter), the Indenture Trustee shall, for the benefit
of the Noteholders and the Insurer, review each Mortgage File delivered to it
and to execute and deliver, or cause to be executed and delivered, to the
Seller, the Insurer, the RMBS Servicer, the HELOC Back-Up Servicer and the HELOC
Servicer an Initial Certification in the form annexed hereto as Exhibit H. In
conducting such review, the Indenture Trustee shall ascertain whether all
required documents described in Section 2.1(b)(i) to (v) (except clause (v)(ii))
of (a) the Mortgage Loan Purchase Agreement, with respect to the Initial
Mortgage Loans and Initial HELOCs, and (b) the applicable Subsequent Mortgage
Loan Purchase Agreement, with respect to the related Group I, Group II-C, Group
II-NC, Group III, Group IV and Group V Subsequent Mortgage Loans and Group VI
Subsequent HELOC Mortgage Loans, have been executed and received and whether
those documents relate, to the Mortgage Loans and HELOCs it has received, as
identified in Exhibit B to this Indenture, as supplemented (PROVIDED, HOWEVER,
that with respect to those documents described in subclause (b)(vi) of such
section, the Indenture Trustee's obligations shall extend only to documents
actually delivered pursuant to such subclause). In performing any such review,
the Indenture Trustee may conclusively rely on the purported due execution and
genuineness of any such document and on the purported genuineness of any
signature thereon. If the Indenture Trustee finds any document constituting part
of the Mortgage File not to have been executed or received, or to be unrelated
to the Mortgage Loans identified in Exhibit B to this Indenture or to not
conform with the review criteria set forth in Exhibit H (a "defect"), the
Indenture Trustee shall promptly notify the Seller and the Insurer or the Note
Insurer, as applicable, of such finding and the Seller's obligation to cure such
defect or repurchase or substitute for the related Mortgage Loan. To the extent
the Indenture Trustee has not received a Mortgage File with respect to any of
the Initial Mortgage Loans or Initial HELOCs by the Closing Date, or any of the
related Group I, Group II-C, Group II-NC, Group III, Group IV and Group V
Subsequent Mortgage Loans or Group VI Subsequent HELOC Mortgage Loans by the
applicable Subsequent Transfer Date, the Indenture Trustee shall not require the
deposit of cash into the Payment Account or any other account to cover the
amount of that Mortgage Loan and shall solely treat such Mortgage Loan as if it
were in breach of a representation or warranty; provided that the aggregate
Stated Principal Balance of such Mortgage Loans does not exceed 1% of the (i)
sum of the Group I, Group II-C, Group II-NC, Group III, Group IV and Group V
Cut-off Date Balances, in the case of the Mortgage Loans that are not HELOC
Mortgage Loans and (ii) Group VI Cut-off Date Balance, with respect to the HELOC
Mortgage Loans.

                  (i) No later than 180 days after the Closing Date (with
         respect to the Initial Mortgage Loans and Initial HELOCs) or the
         applicable Subsequent Transfer Date (with respect to the related Group
         I, Group II-C, Group II-NC, Group III, Group IV and Group V Subsequent
         Mortgage Loans and Group VI Subsequent HELOC Mortgage Loans), the
         Indenture Trustee will review, for the benefit of the Noteholders and
         the Insurer or the Note Insurer, as applicable, the Mortgage Files and
         will execute and deliver or cause to be executed and delivered to the
         Seller, the Insurer, the RMBS Servicer, the HELOC Back-Up Servicer and
         the HELOC Servicer, a Final Certification in the form annexed hereto as
         Exhibit I. In conducting such review, Indenture Trustee will ascertain
         whether an original of each document described in subclauses
         (b)(ii)-(iv) of Section 2.1 of the Mortgage Loan Purchase Agreement,
         with respect to the Initial Mortgage Loans and Initial HELOCs, and (b)
         the applicable Subsequent Mortgage Loan Purchase Agreement, with
         respect to the related Group I, Group II-C, Group II-NC, Group III,
         Group IV and Group V Subsequent Mortgage Loans and Group VI Subsequent
         HELOC Mortgage Loans, required to be recorded has been returned from
         the applicable recording office with evidence of recording thereon or a
         certified copy has been obtained from such recording office. If the
         Indenture Trustee finds any document constituting part of the Mortgage
         File has not been executed or received, or to be unrelated, to the
         Mortgage Loans and HELOC Mortgage Loans identified in Exhibit B to this
         Indenture or to appear defective on its face, the Indenture Trustee
         shall promptly notify the Seller and the Insurer.

                  (ii) Upon deposit by the Seller of the Repurchase Price in the
         Payment Account, the Indenture Trustee shall release to the Seller or
         the RMBS Servicer, the HELOC Back-Up Servicer and the HELOC Servicer,
         as applicable, the related Mortgage File and the Indenture Trustee
         shall execute and deliver all instruments of transfer or assignment,
         without recourse, representation or warranty, furnished to it by the
         Seller or the RMBS Servicer, the HELOC Back-Up Servicer and the HELOC
         Servicer, as applicable, as are necessary to vest in the Seller or the
         RMBS Servicer, the HELOC Back-Up Servicer and the HELOC Servicer, as
         applicable, title to and rights under the related Mortgage Loan or
         HELOC Mortgage Loan. Such purchase shall be deemed to have occurred on
         the date on which the deposit of the Repurchase Price in the Payment
         Account was received by the Indenture Trustee. The Indenture Trustee
         shall amend the applicable Mortgage Loan Schedule to reflect such
         repurchase and shall promptly notify the RMBS Servicer, the HELOC
         Back-Up Servicer, the RMBS Master Servicer and the HELOC Servicer, the
         Insurer or the Note Insurer, as applicable, and the Securities
         Administrator of such amendment.

         Section 2.04 ACCEPTANCE OF DERIVATIVE CONTRACTS BY INDENTURE TRUSTEE.
The Indenture Trustee acknowledges receipt of the Corridor Contract and the Cap
Contract and declares that it holds and will continue to hold these documents
and any amendments, replacements or supplements thereto and all other assets of
the Trust Estate as Indenture Trustee in trust for the use and benefit of all
present and future Holders of the Notes. The Indenture Trustee shall enforce the
Corridor Contract and the Cap Contract in accordance with their terms.

         Section 2.05 CONVEYANCE OF THE GROUP I SUBSEQUENT MORTGAGE LOANS. (a)
Subject to the conditions set forth in paragraph (b) below and in consideration
of the Indenture Trustee's delivery on the applicable Subsequent Transfer Dates,
to or upon the written order of the Depositor, of all or a portion of the
balance of funds in the Group I Pre-Funding Account, the Depositor shall, on the
Subsequent Transfer Date, sell, transfer, assign, set over and convey without
recourse to the Trust Estate, but subject to the other terms and provisions of
this Agreement, all of the right, title and interest of the Depositor in and to
(i) the related Group I Subsequent Mortgage Loans identified on the Mortgage
Loan Schedule attached to the related Group I Subsequent Transfer Instrument
delivered by the Depositor on the Subsequent Transfer Date, (ii) all interest
accruing thereon on and after the Subsequent Cut-off Date (with respect to the
Group I Subsequent Mortgage Loans) and all collections in respect of interest
and principal due after the Subsequent Cut-off Date and (iii) all items with
respect to such Group I Subsequent Mortgage Loans to be delivered pursuant to
Section 2.03 and the other items in the related Mortgage Files; PROVIDED,
HOWEVER, that the Depositor reserves and retains all right, title and interest
in and to principal received and interest accruing on the Group I Subsequent
Mortgage Loans prior to the related Subsequent Cut-off Date. The transfer to the
Indenture Trustee for deposit in the Trust Estate by the Depositor of the Group
I Subsequent Mortgage Loans identified on the Mortgage Loan Schedule shall be
absolute and is intended by the Depositor, the RMBS Master Servicer, the RMBS
Servicer, the HELOC Back-Up Servicer, the HELOC Servicer, the Securities
Administrator, the Indenture Trustee and the Noteholders to constitute and to be
treated as a sale of the Group I Subsequent Mortgage Loans by the Depositor to
the Trust Estate. The related Mortgage File for each Group I Subsequent Mortgage
Loan shall be delivered to the Indenture Trustee at least three (3) Business
Days prior to the related Subsequent Transfer Date.

         The purchase price paid by the Indenture Trustee from amounts released
from the Group I Pre-Funding Account shall be one-hundred percent (100%) of the
aggregate Stated Principal Balance of the Group I Subsequent Mortgage Loans so
transferred (as identified on the Mortgage Loan Schedule provided by the
Depositor).

         (b) The Depositor shall transfer to the Indenture Trustee for deposit
in the Trust Estate the applicable Group I Subsequent Mortgage Loans and the
other property and rights related thereto as described in paragraph (a) above,
and the Indenture Trustee shall release such applicable funds from the Group I
Pre-Funding Account, only upon the satisfaction of each of the following
conditions on or prior to the Subsequent Transfer Date:

                  (i) the Depositor shall have provided the Securities
         Administrator, the Indenture Trustee, the Note Insurer and the Rating
         Agencies with a timely Addition Notice, substantially in the form of
         Exhibit G hereto, and shall have provided any information reasonably
         requested by the Indenture Trustee with respect to the Group I
         Subsequent Mortgage Loans;

                  (ii) the Depositor shall have delivered to the Indenture
         Trustee a duly executed Group I Subsequent Transfer Instrument (which
         the Indenture Trustee is hereby authorized to execute), which shall
         include a Mortgage Loan Schedule listing the Group I Subsequent
         Mortgage Loans, and the Seller shall have delivered a computer file
         containing such Mortgage Loan Schedule to the Indenture Trustee at
         least three (3) Business Days prior to the applicable Subsequent
         Transfer Date;

                  (iii) as of the applicable Subsequent Transfer Date, as
         evidenced by delivery of the related Group I Subsequent Transfer
         Instrument, substantially in the form of Exhibit F, the Depositor shall
         not be insolvent nor shall it have been rendered insolvent by such
         transfer nor shall it be aware of any pending insolvency;

                  (iv) such sale and transfer shall not result in a material
         adverse tax consequence to the Trust Estate or to the Noteholders;

                  (v) the Funding Period shall not have terminated;

                  (vi) each Mortgage Loan is being serviced by the RMBS Servicer
         under the related Servicing Agreement;

                  (vii) the Depositor shall not have selected the applicable
         Group I Subsequent Mortgage Loans in a manner that it believed to be
         adverse to the interests of the Noteholders or the Note Insurer;

                  (viii) the Depositor shall have delivered to the Indenture
         Trustee the related Group I Subsequent Transfer Instrument confirming
         the satisfaction of all of the conditions specified in this Section
         2.05 and, pursuant to such Group I Subsequent Transfer Instrument,
         assigned to the Indenture Trustee without recourse for the benefit of
         the Noteholders all the right, title and interest of the Depositor, in,
         to and under the applicable Group I Subsequent Mortgage Loan Purchase
         Agreement, to the extent of the related Group I Subsequent Mortgage
         Loans;

                  (ix) the Depositor shall have delivered to the Indenture
         Trustee an Opinion of Counsel addressed to the Indenture Trustee and
         the Rating Agencies with respect to the transfer of the applicable
         Group I Subsequent Mortgage Loans substantially in the form of the
         Opinion of Counsel delivered to the Indenture Trustee on the Closing
         Date regarding the validity of the conveyance and the true sale of such
         Group I Subsequent Mortgage Loans; and

                  (x) on or before the related Subsequent Transfer Date, the
         Depositor shall have delivered to the Securities Administrator and the
         RMBS Master Servicer a computer file containing the final Mortgage Loan
         Schedule with respect to such subsequent transfer and such additional
         information concerning the Mortgage Loans described therein as may be
         necessary to enable the Securities Administrator and the RMBS Master
         Servicer to perform their respective duties under the Basic Documents.

         (c) The obligation of the Trust Estate to purchase a Group I Subsequent
Mortgage Loan on any Subsequent Transfer Date is subject to the satisfaction of
the conditions set forth in the immediately following paragraph and the accuracy
of the following representations and warranties with respect to each such Group
I Subsequent Mortgage Loan determined as of the applicable Subsequent Cut-off
Date: (i) such Group I Subsequent Mortgage Loan may not be 30 or more days
delinquent as of the last day of the month preceding the Subsequent Cut-off
Date; (ii) the original term to stated maturity of such Group I Subsequent
Mortgage Loan will be 480 months; (iii) each Group I Subsequent Mortgage Loan
must be an adjustable-rate Mortgage Loan with a first lien on the related
mortgaged property; (iv) no Group I Subsequent Mortgage Loan will have a first
Payment Date occurring after September 1, 2005; (v) the latest maturity date of
any Group I Subsequent Mortgage Loan will be no later than August 1, 2045; (vi)
none of the Group I Subsequent Mortgage Loans will be a buydown loan; (vii) such
Group I Subsequent Mortgage Loan will have a credit score of not less than 600;
(viii) such Group I Subsequent Mortgage Loan will have a Mortgage Rate as of the
applicable Subsequent Cut-off Date ranging from approximately 1.000% per annum
to approximately 8.00% per annum; (ix) none of the Group I Subsequent Mortgage
Loans will be a New York State "high cost" loan; and (x) such Group I Subsequent
Mortgage Loan shall have been underwritten in accordance with the criteria set
forth under "The Mortgage Pool--Underwriting Standards" in the Prospectus
Supplement.

         (d) In addition, following the purchase of any Group I Subsequent
Mortgage Loan by the Trust, the applicable Group I Subsequent Mortgage Loans
will as of the related Subsequent Cut-off Date: (i) have a weighted average
Mortgage Rate ranging from 2.50% to 3.00% per annum; (ii) consist of Mortgage
Loans with prepayment charges representing no less than approximately 45.00% of
the Pool Balance; (iii) have a weighted average credit score ranging from 700 to
720; (iv) have no more than 25.00% of such Mortgage Loans concentrated in the
state of California; (v) have no less than 70.00% of the mortgaged properties
securing Group I Subsequent Mortgage Loans be owner occupied; (vi) have no less
than 59.00% of the mortgaged properties securing Group I Mortgage Loans be
single family detached and no more than 25.00% of the mortgaged properties
securing Group I Mortgage Loans be de minimis planned unit developments; (vii)
have no more than 50.00% of the Group I Loans be cash-out refinance; (viii) not
have any of such group of Group I Subsequent Mortgage Loans with a loan-to-value
ratio greater than 80% not be covered by a Primary Insurance Policy; (ix) have
no more than 0.00% of the Group I Loans be Mortgage Loans with an interest only
period; (x) together with the Group I Mortgage Loans already included in the
trust, have no more than 2.00% of such Group I Subsequent Mortgage Loans (by
aggregate Stated Principal Balance as of the Subsequent Cut-off Date) secured by
mortgaged properties located in any one zip code; (xi) no more than 50.00% of
such Mortgage Loans will have a credit score less than 700; (xii) no less than
30.00% of such Mortgage Loans will have "full documentation"; (xii) such
Mortgage Loans will have a weighted average loan to value ratio between 70.00%
and 77.00% and (xiv) no more than 5.00% of such Mortgage Loans will have a loan
to value ratio of greater than 95%.

         Notwithstanding the foregoing, any Group I Subsequent Mortgage Loan may
be rejected by any Rating Agency if the inclusion of any such Group I Subsequent
Mortgage Loan would adversely affect the ratings of the Notes. In addition,
minor variances from the characteristics stated above will be permitted with the
consent of the Rating Agencies so long as there are compensating factors, and
the consent of the Rating Agencies to any group of Group I Subsequent Mortgage
Loans shall mean that the representations and warranties set forth in
subsections (c) and (d) above are accurate; PROVIDED, HOWEVER, that the
information furnished to the Rating Agencies in respect of such Group I
Subsequent Mortgage Loans is true and correct in all material respects. The
Seller shall deliver to each Rating Agency at least three (3) Business Days
prior to such applicable Subsequent Transfer Date a computer file acceptable to
each Rating Agency describing the characteristics specified in subsections (c)
and (d) above. The Indenture Trustee shall not include any Group I Subsequent
Mortgage Loans on the applicable Subsequent Transfer Date as to which it has
received notice from any Rating Agency at least one (1) Business Day prior to
such Subsequent Transfer Date that such Mortgage Loan should not be included in
the Group I Subsequent Mortgage Loans.

         Section 2.06 CONVEYANCE OF THE GROUP II-C SUBSEQUENT MORTGAGE LOANS.
(a) Subject to the conditions set forth in paragraph (b) below and in
consideration of the Indenture Trustee's delivery on the applicable Subsequent
Transfer Dates, to or upon the written order of the Depositor, of all or a
portion of the balance of funds in the Group II-C Pre-Funding Account, the
Depositor shall, on the Subsequent Transfer Date, sell, transfer, assign, set
over and convey without recourse to the Trust Estate, but subject to the other
terms and provisions of this Agreement, all of the right, title and interest of
the Depositor in and to (i) the related Group II-C Subsequent Mortgage Loans
identified on the Mortgage Loan Schedule attached to the related Group II-C
Subsequent Transfer Instrument delivered by the Depositor on the Subsequent
Transfer Date, (ii) all interest accruing thereon on and after the Subsequent
Cut-off Date (with respect to the Group II-C Subsequent Mortgage Loans) and all
collections in respect of interest and principal due after the Subsequent
Cut-off Date and (iii) all items with respect to such Group II-C Subsequent
Mortgage Loans to be delivered pursuant to Section 2.03 and the other items in
the related Mortgage Files; PROVIDED, HOWEVER, that the Depositor reserves and
retains all right, title and interest in and to principal received and interest
accruing on the Group II-C Subsequent Mortgage Loans prior to the related
Subsequent Cut-off Date. The transfer to the Indenture Trustee for deposit in
the Trust Estate by the Depositor of the Group II-C Subsequent Mortgage Loans
identified on the Mortgage Loan Schedule shall be absolute and is intended by
the Depositor, the RMBS Master Servicer, the RMBS Servicer, the HELOC Back-Up
Servicer, the HELOC Servicer, the Securities Administrator, the Indenture
Trustee and the Noteholders to constitute and to be treated as a sale of the
Group II-C Subsequent Mortgage Loans by the Depositor to the Trust Estate. The
related Mortgage File for each Group II-C Subsequent Mortgage Loan shall be
delivered to the Indenture Trustee at least three (3) Business Days prior to the
related Subsequent Transfer Date.

         The purchase price paid by the Indenture Trustee from amounts released
from the Group II-C Pre-Funding Account shall be one-hundred percent (100%) of
the aggregate Stated Principal Balance of the Group II-C Subsequent Mortgage
Loans so transferred (as identified on the Mortgage Loan Schedule provided by
the Depositor).

         (b) The Depositor shall transfer to the Indenture Trustee for deposit
in the Trust Estate the applicable Group II-C Subsequent Mortgage Loans and the
other property and rights related thereto as described in paragraph (a) above,
and the Indenture Trustee shall release such applicable funds from the Group
II-C Pre-Funding Account, only upon the satisfaction of each of the following
conditions on or prior to the Subsequent Transfer Date:

                  (i) the Depositor shall have provided the Securities
         Administrator, the Indenture Trustee, the Note Insurer and the Rating
         Agencies with a timely Addition Notice, substantially in the form of
         Exhibit G hereto, and shall have provided any information reasonably
         requested by the Indenture Trustee with respect to the Group II-C
         Subsequent Mortgage Loans;

                  (ii) the Depositor shall have delivered to the Indenture
         Trustee a duly executed Group II-C Subsequent Transfer Instrument
         (which the Indenture Trustee is hereby authorized to execute), which
         shall include a Mortgage Loan Schedule listing the Group II-C
         Subsequent Mortgage Loans, and the Seller shall have delivered a
         computer file containing such Mortgage Loan Schedule to the Indenture
         Trustee at least three (3) Business Days prior to the related
         Subsequent Transfer Date;

                  (iii) as of each applicable Subsequent Transfer Date, as
         evidenced by delivery of the related Group II-C Subsequent Transfer
         Instrument, substantially in the form of Exhibit F, the Depositor shall
         not be insolvent nor shall it have been rendered insolvent by such
         transfer nor shall it be aware of any pending insolvency;

                  (iv) such sale and transfer shall not result in a material
         adverse tax consequence to the Trust Estate or to the Noteholders;

                  (v) the Funding Period shall not have terminated;

                  (vi) each Mortgage Loan is being serviced by the RMBS Servicer
         under the related Servicing Agreement;

                  (vii) the Depositor shall not have selected the applicable
         Group II-C Subsequent Mortgage Loans in a manner that it believed to be
         adverse to the interests of the Noteholders or the Note Insurer;

                  (viii) the Depositor shall have delivered to the Indenture
         Trustee the related Group II-C Subsequent Transfer Instrument
         confirming the satisfaction of all of the conditions specified in this
         Section 2.06 and, pursuant to such Group II-C Subsequent Transfer
         Instrument, assigned to the Indenture Trustee without recourse for the
         benefit of the Noteholders all the right, title and interest of the
         Depositor, in, to and under the applicable Group II-C Subsequent
         Mortgage Loan Purchase Agreement, to the extent of the related Group
         II-C Subsequent Mortgage Loans;

                  (ix) the Depositor shall have delivered to the Indenture
         Trustee an Opinion of Counsel addressed to the Indenture Trustee and
         the Rating Agencies with respect to the transfer of the applicable
         Group II-C Subsequent Mortgage Loans substantially in the form of the
         Opinion of Counsel delivered to the Indenture Trustee on the Closing
         Date regarding the validity of the conveyance and the true sale of such
         Group II-C Subsequent Mortgage Loans; and

                  (x) on or before the related Subsequent Transfer Date, the
         Depositor shall have delivered to the Securities Administrator and the
         RMBS Master Servicer a computer file containing the final Mortgage Loan
         Schedule with respect to such subsequent transfer and such additional
         information concerning the Mortgage Loans described therein as may be
         necessary to enable the Securities Administrator and the RMBS Master
         Servicer to perform their respective duties under the Basic Documents.

         (c) The obligation of the Trust Estate to purchase a Group II-C
Subsequent Mortgage Loan on any Subsequent Transfer Date is subject to the
satisfaction of the conditions set forth in the immediately following paragraph
and the accuracy of the following representations and warranties with respect to
each such Group II-C Subsequent Mortgage Loan determined as of the applicable
Subsequent Cut-off Date: (i) such Group II-C Subsequent Mortgage Loan may not be
30 or more days delinquent as of the last day of the month preceding the
Subsequent Cut-off Date; (ii) the original term to stated maturity of such Group
II-C Subsequent Mortgage Loan will be no more than 360 months; (iii) each Group
II-C Subsequent Mortgage Loan must be an adjustable-rate mortgage loan with a
first lien on the related mortgaged property; (iv) no Group II-C Subsequent
Mortgage Loan will have a first payment date occurring after September 1, 2005;
(v) the latest maturity date of any Group II-C Subsequent Mortgage Loan will be
no later than August 1, 2035; (vi) none of the Group II-C Subsequent Mortgage
Loans will be a buydown loan; (vii) such Group II-C Subsequent Mortgage Loan
will have a credit score of not less than 600; (viii) such Group II-C Subsequent
Mortgage Loan will have a Mortgage Rate as of the applicable Subsequent Cut-off
Date ranging from approximately 1.00% per annum to approximately 9.00% per
annum; (ix) none of the Group II-C Subsequent Mortgage loans will be a New York
State "high cost" loan; and (x) such Group II-C Subsequent Mortgage Loan shall
have been underwritten in accordance with the criteria set forth under "The
Mortgage Pool--Underwriting Standards" in the Prospectus Supplement.

         (d) In addition, following the purchase of any Group II-C Subsequent
Mortgage Loan by the Trust, the applicable Group II-C Subsequent Mortgage Loans
will as of the related Subsequent Cut-off Date: (i) have a weighted average
Mortgage Rate ranging from 5.00% to 5.75% per annum; (ii) consist of Group II-C
Subsequent Mortgage Loans with prepayment charges representing no less than
approximately 5.00% of the Pool Balance; (iii) have a weighted average credit
score ranging from 700 to 740; (iv) have no more than 33.00% of such Group II-C
Subsequent Mortgage Loans concentrated in the state of California; (v) have no
less than 70.00% of the mortgaged properties securing Group II-C Subsequent
Mortgage Loans be owner occupied; (vi) have no less than 50.00% of the mortgaged
properties securing Group II-C Subsequent Mortgage Loans be single family
detached and no more than 25.00% planned unit developments; (vii) have no more
than 25.00% of the Group II-C Subsequent Mortgage Loans be cash-out refinance;
(viii) all of the Group II-C Subsequent Mortgage Loans with a loan to value
ratio greater than 80% will be covered by a Primary Insurance Policy; (ix) have
no more than 95.00% of the Group II-C Subsequent Mortgage Loans be mortgage
loans with an interest only period; (x) together with the Group II-C loans
already included in the trust, have no more than 2.00% of such mortgage loans
(by aggregate Stated Principal Balance as of the Subsequent Cut-off Date)
secured by mortgaged properties located in any one zip code; (xi) no more than
10.00% of the Group II-C Subsequent Mortgage Loans will have a credit score less
than 650; (xii) no less than 35.00% the Group II-C Subsequent Mortgage Loans
will have "full documentation"; (xii) such Group II-C Subsequent Mortgage Loans
will have a weighted average loan to value ratio between 70.00% and 80.00% and
(xiv) no more than 1.00% of such Group II-C Subsequent Mortgage Loans will have
a loan to value ratio of greater than 95%.

         Notwithstanding the foregoing, any Group II-C Subsequent Mortgage Loan
may be rejected by any Rating Agency if the inclusion of any such Group II-C
Subsequent Mortgage Loan would adversely affect the ratings of the Notes. In
addition, minor variances from the characteristics stated above will be
permitted with the consent of the Rating Agencies so long as there are
compensating factors, and the consent of the Rating Agencies to any group of
Group II-C Subsequent Mortgage Loans shall mean that the representations and
warranties set forth in subsections (c) and (d) above are accurate; PROVIDED,
HOWEVER, that the information furnished to the Rating Agencies in respect of
such Group II-C Subsequent Mortgage Loans is true and correct in all material
respects. The Seller shall deliver to each Rating Agency at least three (3)
Business Days prior to such Subsequent Transfer Date a computer file acceptable
to each Rating Agency describing the characteristics specified in subsections
(c) and (d) above. The Indenture Trustee shall not include any Group II-C
Subsequent Mortgage Loans on the applicable Subsequent Transfer Date as to which
it has received notice from any Rating Agency at least one (1) Business Day
prior to such Subsequent Transfer Date that such Mortgage Loan should not be
included in the Group II-C Subsequent Mortgage Loans.

         Section 2.07 CONVEYANCE OF THE GROUP II-NC SUBSEQUENT MORTGAGE LOANS.
(a) Subject to the conditions set forth in paragraph (b) below and in
consideration of the Indenture Trustee's delivery on the applicable Subsequent
Transfer Dates, to or upon the written order of the Depositor, of all or a
portion of the balance of funds in the Group II-NC Pre-Funding Account, the
Depositor shall, on the Subsequent Transfer Date, sell, transfer, assign, set
over and convey without recourse to the Trust Estate, but subject to the other
terms and provisions of this Agreement, all of the right, title and interest of
the Depositor in and to (i) the related Group II-NC Subsequent Mortgage Loans
identified on the Mortgage Loan Schedule attached to the related Group II-NC
Subsequent Transfer Instrument delivered by the Depositor on the Subsequent
Transfer Date, (ii) all interest accruing thereon on and after the Subsequent
Cut-off Date (with respect to the Group II-NC Subsequent Mortgage Loans) and all
collections in respect of interest and principal due after the Subsequent
Cut-off Date and (iii) all items with respect to such Group II-NC Subsequent
Mortgage Loans to be delivered pursuant to Section 2.03 and the other items in
the related Mortgage Files; PROVIDED, HOWEVER, that the Depositor reserves and
retains all right, title and interest in and to principal received and interest
accruing on the Group II-NC Subsequent Mortgage Loans prior to the related
Subsequent Cut-off Date. The transfer to the Indenture Trustee for deposit in
the Trust Estate by the Depositor of the Group II-NC Subsequent Mortgage Loans
identified on the Mortgage Loan Schedule shall be absolute and is intended by
the Depositor, the RMBS Master Servicer, the RMBS Servicer, the HELOC Back-Up
Servicer, the HELOC Servicer, the Securities Administrator, the Indenture
Trustee and the Noteholders to constitute and to be treated as a sale of the
Group II-NC Subsequent Mortgage Loans by the Depositor to the Trust Estate. The
related Mortgage File for each Group II-NC Subsequent Mortgage Loan shall be
delivered to the Indenture Trustee at least three (3) Business Days prior to the
related Subsequent Transfer Date.

         The purchase price paid by the Indenture Trustee from amounts released
from the Group II-NC Pre-Funding Account shall be one-hundred percent (100%) of
the aggregate Stated Principal Balance of the Group II-NC Subsequent Mortgage
Loans so transferred (as identified on the Mortgage Loan Schedule provided by
the Depositor).

         (b) The Depositor shall transfer to the Indenture Trustee for deposit
in the Trust Estate the applicable Group II-NC Subsequent Mortgage Loans and the
other property and rights related thereto as described in paragraph (a) above,
and the Indenture Trustee shall release such applicable funds from the Group
II-NC Pre-Funding Account, only upon the satisfaction of each of the following
conditions on or prior to the Subsequent Transfer Date:

                  (i) the Depositor shall have provided the Securities
         Administrator, the Indenture Trustee, the Note Insurer and the Rating
         Agencies with a timely Addition Notice, substantially in the form of
         Exhibit G hereto, and shall have provided any information reasonably
         requested by the Indenture Trustee with respect to the Group II-NC
         Subsequent Mortgage Loans;

                  (ii) the Depositor shall have delivered to the Indenture
         Trustee a duly executed Group II-NC Subsequent Transfer Instrument
         (which the Indenture Trustee is hereby authorized to execute), which
         shall include a Mortgage Loan Schedule listing the Group II-NC
         Subsequent Mortgage Loans, and the Seller shall have delivered a
         computer file containing such Mortgage Loan Schedule to the Indenture
         Trustee at least three (3) Business Days prior to the related
         Subsequent Transfer Date;

                  (iii) as of each applicable Subsequent Transfer Date, as
         evidenced by delivery of the related Group II-NC Subsequent Transfer
         Instrument, substantially in the form of Exhibit F, the Depositor shall
         not be insolvent nor shall it have been rendered insolvent by such
         transfer nor shall it be aware of any pending insolvency;

                  (iv) such sale and transfer shall not result in a material
         adverse tax consequence to the Trust Estate or to the Noteholders;

                  (v) the Funding Period shall not have terminated;

                  (vi) each Mortgage Loan is being serviced by the RMBS Servicer
         under the related Servicing Agreement;

                  (vii) the Depositor shall not have selected the applicable
         Group II-NC Subsequent Mortgage Loans in a manner that it believed to
         be adverse to the interests of the Noteholders or the Note Insurer;

                  (viii) the Depositor shall have delivered to the Indenture
         Trustee the related Group II-NC Subsequent Transfer Instrument
         confirming the satisfaction of all of the conditions specified in this
         Section 2.06 and, pursuant to such Group II-NC Subsequent Transfer
         Instrument, assigned to the Indenture Trustee without recourse for the
         benefit of the Noteholders all the right, title and interest of the
         Depositor, in, to and under the applicable Group II-NC Subsequent
         Mortgage Loan Purchase Agreement, to the extent of the related Group
         II-NC Subsequent Mortgage Loans;

                  (ix) the Depositor shall have delivered to the Indenture
         Trustee an Opinion of Counsel addressed to the Indenture Trustee and
         the Rating Agencies with respect to the transfer of the applicable
         Group II-NC Subsequent Mortgage Loans substantially in the form of the
         Opinion of Counsel delivered to the Indenture Trustee on the Closing
         Date regarding the validity of the conveyance and the true sale of such
         Group II-NC Subsequent Mortgage Loans; and

                  (x) on or before the related Subsequent Transfer Date, the
         Depositor shall have delivered to the Securities Administrator and the
         RMBS Master Servicer a computer file containing the final Mortgage Loan
         Schedule with respect to such subsequent transfer and such additional
         information concerning the Mortgage Loans described therein as may be
         necessary to enable the Securities Administrator and the RMBS Master
         Servicer to perform their respective duties under the Basic Documents.

         (c) The obligation of the Trust Estate to purchase a Group II-NC
Subsequent Mortgage Loan on any Subsequent Transfer Date is subject to the
satisfaction of the conditions set forth in the immediately following paragraph
and the accuracy of the following representations and warranties with respect to
each such Group II-NC Subsequent Mortgage Loan determined as of the applicable
Subsequent Cut-off Date: (i) such Group II-NC Subsequent Mortgage Loan may not
be 30 or more days delinquent as of the last day of the month preceding the
Subsequent Cut-off Date; (ii) the original term to stated maturity of such Group
II-NC Subsequent Mortgage Loan will be no more than 360 months; (iii) each Group
II-NC Subsequent Mortgage Loan must be an adjustable-rate mortgage loan with a
first lien on the related mortgaged property; (iv) no Group II-NC Subsequent
Mortgage Loan will have a first payment date occurring after September 1, 2005;
(v) the latest maturity date of any Group II-NC Subsequent Mortgage Loan will be
no later than August 1, 2035; (vi) none of the Group II-NC Subsequent Mortgage
Loans will be a buydown loan; (vii) such Group II-NC Subsequent Mortgage Loan
will have a credit score of not less than 625; (viii) such Group II-NC
Subsequent Mortgage Loan will have a Mortgage Rate as of the applicable
Subsequent Cut-off Date ranging from approximately 1.00% per annum to
approximately 10.00% per annum; (ix) none of the Group II-NC Subsequent Mortgage
Loans will be a New York State "high cost" loan; and (x) such Group II-NC
Subsequent Mortgage Loan shall have been underwritten in accordance with the
criteria set forth under "The Mortgage Pool--Underwriting Standards" in the
Prospectus Supplement.

         (d) In addition, following the purchase of any Group II-NC Subsequent
Mortgage Loan by the Trust, the applicable Group II-NC Subsequent Mortgage Loans
will as of the related Subsequent Cut-off Date: (i) have a weighted average
Mortgage Rate ranging from 4.75% to 5.25% per annum; (ii) consist of mortgage
loans with prepayment charges representing no less than approximately 3.00% of
the Pool Balance; (iii) have a weighted average credit score ranging from 715 to
730; (iv) have no more than 54.00% of such mortgage loans concentrated in the
state of California; (v) have no less than 84.00% of the mortgaged properties
securing Group II-NC Subsequent Mortgage Loans be owner occupied; (vi) have no
less than 60.00% of the mortgaged properties securing Group II-NC Subsequent
Mortgage Loans be single family detached and no more than 28.00% planned unit
developments; (vii) have no more than 32.00% of the Group II-NC Subsequent
Mortgage Loans be cash-out refinance; (viii) all of the Group II-NC Subsequent
Mortgage Loans with a loan to value ratio greater than 80% will be covered by a
Primary Insurance Policy; (ix) have no more than 98.00% of the Group II-NC
Subsequent Mortgage Loans be mortgage loans with an interest only period; (x)
together with the Group II-NC Loans already included in the trust, have no more
than 2.00% of such mortgage loans (by aggregate Stated Principal Balance as of
the Subsequent Cut-off Date) secured by mortgaged properties located in any one
zip code; (xi) no more than 8.00% of the Group II-NC Subsequent Mortgage Loans
will have a credit score less than 650; (xii) no less than 29.00% of the Group
II-NC Subsequent Mortgage Loans will have "full documentation"; (xii) will have
a weighted average loan to value ratio between 68.00% and 77.00% and (xiv) no
more than 1.00% of such Group II-NC Subsequent Mortgage Loans will have a loan
to value ratio of greater than 95%.

         Notwithstanding the foregoing, any Group II-NC Subsequent Mortgage Loan
may be rejected by any Rating Agency if the inclusion of any such Group II-NC
Subsequent Mortgage Loan would adversely affect the ratings of the Notes. In
addition, minor variances from the characteristics stated above will be
permitted with the consent of the Rating Agencies so long as there are
compensating factors, and the consent of the Rating Agencies to any group of
Group II-NC Subsequent Mortgage Loans shall mean that the representations and
warranties set forth in subsections (c) and (d) above are accurate; PROVIDED,
HOWEVER, that the information furnished to the Rating Agencies in respect of
such Group II-NC Subsequent Mortgage Loans is true and correct in all material
respects. The Seller shall deliver to each Rating Agency at least three (3)
Business Days prior to such Subsequent Transfer Date a computer file acceptable
to each Rating Agency describing the characteristics specified in subsections
(c) and (d) above. The Indenture Trustee shall not include any Group II-NC
Subsequent Mortgage Loans on the applicable Subsequent Transfer Date as to which
it has received notice from any Rating Agency at least one (1) Business Day
prior to such Subsequent Transfer Date that such Mortgage Loan should not be
included in the Group II-NC Subsequent Mortgage Loans.

         Section 2.08 CONVEYANCE OF THE GROUP III SUBSEQUENT MORTGAGE LOANS. (a)
Subject to the conditions set forth in paragraph (b) below and in consideration
of the Indenture Trustee's delivery on the applicable Subsequent Transfer Dates,
to or upon the written order of the Depositor, of all or a portion of the
balance of funds in the Group III Pre-Funding Account, the Depositor shall, on
the Subsequent Transfer Date, sell, transfer, assign, set over and convey
without recourse to the Trust Estate, but subject to the other terms and
provisions of this Agreement, all of the right, title and interest of the
Depositor in and to (i) the related Group III Subsequent Mortgage Loans
identified on the Mortgage Loan Schedule attached to the related Group III
Subsequent Transfer Instrument delivered by the Depositor on the Subsequent
Transfer Date, (ii) all interest accruing thereon on and after the Subsequent
Cut-off Date (with respect to the Group III Subsequent Mortgage Loans) and all
collections in respect of interest and principal due after the Subsequent
Cut-off Date and (iii) all items with respect to such Group III Subsequent
Mortgage Loans to be delivered pursuant to Section 2.03 and the other items in
the related Mortgage Files; PROVIDED, HOWEVER, that the Depositor reserves and
retains all right, title and interest in and to principal received and interest
accruing on the Group III Subsequent Mortgage Loans prior to the related
Subsequent Cut-off Date. The transfer to the Indenture Trustee for deposit in
the Trust Estate by the Depositor of the Group III Subsequent Mortgage Loans
identified on the Mortgage Loan Schedule shall be absolute and is intended by
the Depositor, the RMBS Master Servicer, the RMBS Servicer, the HELOC Back-Up
Servicer, the HELOC Servicer, the Securities Administrator, the Indenture
Trustee and the Noteholders to constitute and to be treated as a sale of the
Group III Subsequent Mortgage Loans by the Depositor to the Trust Estate. The
related Mortgage File for each Group III Subsequent Mortgage Loan shall be
delivered to the Indenture Trustee at least three (3) Business Days prior to the
related Subsequent Transfer Date.

         The purchase price paid by the Indenture Trustee from amounts released
from the Group III Pre-Funding Account shall be one-hundred percent (100%) of
the aggregate Stated Principal Balance of the Group III Subsequent Mortgage
Loans so transferred (as identified on the Mortgage Loan Schedule provided by
the Depositor).

         (b) The Depositor shall transfer to the Indenture Trustee for deposit
in the Trust Estate the applicable Group III Subsequent Mortgage Loans and the
other property and rights related thereto as described in paragraph (a) above,
and the Indenture Trustee shall release such applicable funds from the Group III
Pre-Funding Account, only upon the satisfaction of each of the following
conditions on or prior to the Subsequent Transfer Date:

                  (i) the Depositor shall have provided the Securities
         Administrator, the Indenture Trustee, the Note Insurer and the Rating
         Agencies with a timely Addition Notice, substantially in the form of
         Exhibit G hereto, and shall have provided any information reasonably
         requested by the Indenture Trustee with respect to the Group III
         Subsequent Mortgage Loans;

                  (ii) the Depositor shall have delivered to the Indenture
         Trustee a duly executed Group III Subsequent Transfer Instrument (which
         the Indenture Trustee is hereby authorized to execute), which shall
         include a Mortgage Loan Schedule listing the Group III Subsequent
         Mortgage Loans, and the Seller shall have delivered a computer file
         containing such Mortgage Loan Schedule to the Indenture Trustee at
         least three (3) Business Days prior to the related Subsequent Transfer
         Date;

                  (iii) as of each applicable Subsequent Transfer Date, as
         evidenced by delivery of the related Group III Subsequent Transfer
         Instrument, substantially in the form of Exhibit F, the Depositor shall
         not be insolvent nor shall it have been rendered insolvent by such
         transfer nor shall it be aware of any pending insolvency;

                  (iv) such sale and transfer shall not result in a material
         adverse tax consequence to the Trust Estate or to the Noteholders;

                  (v) the Funding Period shall not have terminated;

                  (vi) each Mortgage Loan is being serviced by the RMBS Servicer
         under the related Servicing Agreement;

                  (vii) the Depositor shall not have selected the applicable
         Group III Subsequent Mortgage Loans in a manner that it believed to be
         adverse to the interests of the Noteholders or the Note Insurer;

                  (viii) the Depositor shall have delivered to the Indenture
         Trustee the related Group III Subsequent Transfer Instrument confirming
         the satisfaction of all of the conditions specified in this Section
         2.07 and, pursuant to such Group III Subsequent Transfer Instrument,
         assigned to the Indenture Trustee without recourse for the benefit of
         the Noteholders all the right, title and interest of the Depositor, in,
         to and under the applicable Group III Subsequent Mortgage Loan Purchase
         Agreement, to the extent of the related Group III Subsequent Mortgage
         Loans;

                  (ix) the Depositor shall have delivered to the Indenture
         Trustee an Opinion of Counsel addressed to the Indenture Trustee and
         the Rating Agencies with respect to the transfer of the applicable
         Group III Subsequent Mortgage Loans substantially in the form of the
         Opinion of Counsel delivered to the Indenture Trustee on the Closing
         Date regarding the validity of the conveyance and the true sale of such
         Group III Subsequent Mortgage Loans; and

                  (x) on or before the related Subsequent Transfer Date, the
         Depositor shall have delivered to the Securities Administrator and the
         RMBS Master Servicer a computer file containing the final Mortgage Loan
         Schedule with respect to such subsequent transfer and such additional
         information concerning the Mortgage Loans described therein as may be
         necessary to enable the Securities Administrator and the RMBS Master
         Servicer to perform their respective duties under the Basic Documents.

         (c) The obligation of the Trust Estate to purchase a Group III
Subsequent Mortgage Loan on any Subsequent Transfer Date is subject to the
satisfaction of the conditions set forth in the immediately following paragraph
and the accuracy of the following representations and warranties with respect to
each such Group III Subsequent Mortgage Loan determined as of the applicable
Subsequent Cut-off Date: (i) such mortgage loan may not be 30 or more days
delinquent as of the last day of the month preceding the Subsequent Cut-off
Date; (ii) the original term to stated maturity of such mortgage loan will be no
more than 360 months; (iii) each group III subsequent mortgage loan must be an
adjustable-rate mortgage loan with a first lien on the related mortgaged
property; (iv) no Group III Subsequent Mortgage Loan will have a first payment
date occurring after September 1, 2005; (v) the latest maturity date of any
group III subsequent mortgage loan will be no later than August 1, 2035; (vi)
none of the Group III Subsequent Mortgage Loans will be a buydown loan; (vii)
such mortgage loan will have a credit score of not less than 625; (viii) such
mortgage loan will have a Mortgage Rate as of the applicable Subsequent Cut-off
Date ranging from approximately 4.00% per annum to approximately 8.00% per
annum; (ix) none of the Group III Subsequent Mortgage loans will be a New York
State "high cost" loan; and (x) such Group III Subsequent Mortgage Loan shall
have been underwritten in accordance with the criteria set forth under "The
Mortgage Pool--Underwriting Standards" in the Prospectus Supplement.

         (d) In addition, following the purchase of any Group III Subsequent
Mortgage Loan by the Trust, the applicable Group III Subsequent Mortgage Loans
will as of the related Subsequent Cut-off Date: (i) have a weighted average
Mortgage Rate ranging from 5.75% to 6.30% per annum; (ii) consist of mortgage
loans with prepayment charges representing no less than approximately 5.00% of
the Pool Balance; (iii) have a weighted average credit score ranging from 700 to
725; (iv) have no more than 20.00% of such mortgage loans concentrated in the
state of California; (v) have no less than 70.00% of the mortgaged properties
securing Group III Subsequent Mortgage Loans be owner occupied; (vi) have no
less than 45.00% of the mortgaged properties securing Group III Subsequent
Mortgage Loans be single family detached and no more than 32.00% planned unit
developments; (vii) have no more than 25.00% of the Group III Subsequent
Mortgage Loans be cash-out refinance; (viii) all of the Group III Subsequent
Mortgage Loans with a loan to value ratio greater than 80% will be covered by a
Primary Insurance Policy; (ix) have no more than 94.00% of the Group III
Subsequent Mortgage Loans be mortgage loans with an interest only period; (x)
together with the Group III Loans already included in the trust, have no more
than 1.50% of such mortgage loans (by aggregate Stated Principal Balance as of
the Subsequent Cut-off Date) secured by mortgaged properties located in any one
zip code; (xi) no more than 11.00% of the Group III Subsequent Mortgage Loans
will have a credit score less than 650; (xii) no less than 35.00% the Group III
Subsequent Mortgage Loans will have "full documentation"; (xii) will have a
weighted average loan to value ratio between 70.00% and 80.00% and (xiv) no more
than 2.00% of such Group III Subsequent Mortgage Loans will have a loan to value
ratio of greater than 95%.

         Notwithstanding the foregoing, any Group III Subsequent Mortgage Loan
may be rejected by any Rating Agency if the inclusion of any such Group III
Subsequent Mortgage Loan would adversely affect the ratings of the Notes. In
addition, minor variances from the characteristics stated above will be
permitted with the consent of the Rating Agencies so long as there are
compensating factors, and the consent of the Rating Agencies to any group of
Group III Subsequent Mortgage Loans shall mean that the representations and
warranties set forth in subsections (c) and (d) above are accurate; PROVIDED,
HOWEVER, that the information furnished to the Rating Agencies in respect of
such Group III Subsequent Mortgage Loans is true and correct in all material
respects. The Seller shall deliver to each Rating Agency at least three (3)
Business Days prior to such Subsequent Transfer Date a computer file acceptable
to each Rating Agency describing the characteristics specified in subsections
(c) and (d) above. The Indenture Trustee shall not include any Group III
Subsequent Mortgage Loans on the applicable Subsequent Transfer Date as to which
it has received notice from any Rating Agency at least one (1) Business Day
prior to such Subsequent Transfer Date that such Mortgage Loan should not be
included in the Group III Subsequent Mortgage Loans.

         Section 2.09 CONVEYANCE OF THE GROUP IV SUBSEQUENT MORTGAGE LOANS. (a)
Subject to the conditions set forth in paragraph (b) below and in consideration
of the Indenture Trustee's delivery on the applicable Subsequent Transfer Dates,
to or upon the written order of the Depositor, of all or a portion of the
balance of funds in the Group IV Pre-Funding Account, the Depositor shall, on
the Subsequent Transfer Date, sell, transfer, assign, set over and convey
without recourse to the Trust Estate, but subject to the other terms and
provisions of this Agreement, all of the right, title and interest of the
Depositor in and to (i) the related Group IV Subsequent Mortgage Loans
identified on the Mortgage Loan Schedule attached to the related Group IV
Subsequent Transfer Instrument delivered by the Depositor on the Subsequent
Transfer Date, (ii) all interest accruing thereon on and after the Subsequent
Cut-off Date (with respect to the Group IV Subsequent Mortgage Loans) and all
collections in respect of interest and principal due after the Subsequent
Cut-off Date and (iii) all items with respect to such Group IV Subsequent
Mortgage Loans to be delivered pursuant to Section 2.03 and the other items in
the related Mortgage Files; PROVIDED, HOWEVER, that the Depositor reserves and
retains all right, title and interest in and to principal received and interest
accruing on the Group IV Subsequent Mortgage Loans prior to the related
Subsequent Cut-off Date. The transfer to the Indenture Trustee for deposit in
the Trust Estate by the Depositor of the Group IV Subsequent Mortgage Loans
identified on the Mortgage Loan Schedule shall be absolute and is intended by
the Depositor, the RMBS Master Servicer, the RMBS Servicer, the HELOC Back-Up
Servicer, the HELOC Servicer, the Securities Administrator, the Indenture
Trustee and the Noteholders to constitute and to be treated as a sale of the
Group IV Subsequent Mortgage Loans by the Depositor to the Trust Estate. The
related Mortgage File for each Group IV Subsequent Mortgage Loan shall be
delivered to the Indenture Trustee at least three (3) Business Days prior to the
related Subsequent Transfer Date.

         The purchase price paid by the Indenture Trustee from amounts released
from the Group IV Pre-Funding Account shall be one-hundred percent (100%) of the
aggregate Stated Principal Balance of the Group IV Subsequent Mortgage Loans so
transferred (as identified on the Mortgage Loan Schedule provided by the
Depositor).

         (b) The Depositor shall transfer to the Indenture Trustee for deposit
in the Trust Estate the applicable Group IV Subsequent Mortgage Loans and the
other property and rights related thereto as described in paragraph (a) above,
and the Indenture Trustee shall release such applicable funds from the Group IV
Pre-Funding Account, only upon the satisfaction of each of the following
conditions on or prior to the related Subsequent Transfer Date:

                  (i) the Depositor shall have provided the Securities
         Administrator, the Indenture Trustee, the Note Insurer and the Rating
         Agencies with a timely Addition Notice, substantially in the form of
         Exhibit G hereto, and shall have provided any information reasonably
         requested by the Indenture Trustee with respect to the Group IV
         Subsequent Mortgage Loans;

                  (ii) the Depositor shall have delivered to the Indenture
         Trustee a duly executed Group IV Subsequent Transfer Instrument (which
         the Indenture Trustee is hereby authorized to execute), which shall
         include a Mortgage Loan Schedule listing the Group IV Subsequent
         Mortgage Loans, and the Seller shall have delivered a computer file
         containing such Mortgage Loan Schedule to the Indenture Trustee at
         least three (3) Business Days prior to the related Subsequent Transfer
         Date;

                  (iii) as of each related Subsequent Transfer Date, as
         evidenced by delivery of the related Group IV Subsequent Transfer
         Instrument, substantially in the form of Exhibit F, the Depositor shall
         not be insolvent nor shall it have been rendered insolvent by such
         transfer nor shall it be aware of any pending insolvency;

                  (iv) such sale and transfer shall not result in a material
         adverse tax consequence to the Trust Estate or to the Noteholders;

                  (v) the Funding Period shall not have terminated;

                  (vi) each Mortgage Loan is being serviced by the RMBS Servicer
         under the related Servicing Agreement;

                  (vii) the Depositor shall not have selected the applicable
         Group IV Subsequent Mortgage Loans in a manner that it believed to be
         adverse to the interests of the Noteholders or the Note Insurer;

                  (viii) the Depositor shall have delivered to the Indenture
         Trustee the related Group IV Subsequent Transfer Instrument confirming
         the satisfaction of all of the conditions specified in this Section
         2.08 and, pursuant to such Group IV Subsequent Transfer Instrument,
         assigned to the Indenture Trustee without recourse for the benefit of
         the Noteholders all the right, title and interest of the Depositor, in,
         to and under the applicable Group IV Subsequent Mortgage Loan Purchase
         Agreement, to the extent of the related Group IV Subsequent Mortgage
         Loans;

                  (ix) the Depositor shall have delivered to the Indenture
         Trustee an Opinion of Counsel addressed to the Indenture Trustee and
         the Rating Agencies with respect to the transfer of the applicable
         Group IV Subsequent Mortgage Loans substantially in the form of the
         Opinion of Counsel delivered to the Indenture Trustee on the Closing
         Date regarding the validity of the conveyance and the true sale of such
         Group IV Subsequent Mortgage Loans; and

                  (x) on or before the related Subsequent Transfer Date, the
         Depositor shall have delivered to the Securities Administrator and the
         RMBS Master Servicer a computer file containing the final Mortgage Loan
         Schedule with respect to such subsequent transfer and such additional
         information concerning the Mortgage Loans described therein as may be
         necessary to enable the Securities Administrator and the RMBS Master
         Servicer to perform their respective duties under the Basic Documents.

         (c) The obligation of the Trust Estate to purchase a Group IV
Subsequent Mortgage Loan on any Subsequent Transfer Date is subject to the
satisfaction of the conditions set forth in the immediately following paragraph
and the accuracy of the following representations and warranties with respect to
each such Group IV Subsequent Mortgage Loan determined as of the applicable
Subsequent Cut-off Date: (i) such mortgage loan may not be 30 or more days
delinquent as of the last day of the month preceding the Subsequent Cut-off
Date; (ii) the original term to stated maturity of such mortgage loan will be no
more than 360 months; (iii) each Group IV Subsequent Mortgage Loan must be an
adjustable-rate mortgage loan with a first lien on the related mortgaged
property; (iv) no Group IV Subsequent Mortgage Loan will have a first payment
date occurring after September 1, 2005; (v) the latest maturity date of any
Group IV Subsequent Mortgage Loan will be no later than August 1, 2035; (vi)
none of the Group IV Subsequent Mortgage Loans will be a buydown loan; (vii)
such mortgage loan will have a credit score of not less than 635; (viii) such
mortgage loan will have a Mortgage Rate as of the applicable Subsequent Cut-off
Date ranging from approximately 4.50% per annum to approximately 8.00% per
annum; (ix) none of the Group IV Subsequent Mortgage loans will be a New York
State "high cost" loan; and (x) such Group IV Subsequent Mortgage Loan shall
have been underwritten in accordance with the criteria set forth under "The
Mortgage Pool--Underwriting Standards" in the Prospectus Supplement.

         (d) In addition, following the purchase of any Group IV Subsequent
Mortgage Loan by the Trust, the applicable Group IV Subsequent Mortgage Loans
will as of the related Subsequent Cut-off Date: (i) have a weighted average
Mortgage Rate ranging from 5.50% to 6.25% per annum; (ii) consist of mortgage
loans with prepayment charges representing no less than approximately 1.00% of
the Pool Balance; (iii) have a weighted average credit score ranging from 710 to
730; (iv) have no more than 36.00% of such mortgage loans concentrated in the
state of California; (v) have no less than 85.00% of the mortgaged properties
securing Group IV Subsequent Mortgage Loans be owner occupied; (vi) have no less
than 50.00% of the mortgaged properties securing Group IV Subsequent Mortgage
Loans be single family detached and no more than 36.00% planned unit
developments; (vii) have no more than 30.00% of the Group IV Subsequent Mortgage
Loans be cash-out refinance; (viii) all of the Group IV Subsequent Mortgage
Loans with a loan to value ratio greater than 80% will be covered by a Primary
Insurance Policy; (ix) have no more than 95.00% of the Group IV Subsequent
Mortgage Loans be mortgage loans with an interest only period; (x) together with
the Group IV Loans already included in the trust, have no more than 2.50% of
such mortgage loans (by aggregate Stated Principal Balance as of the Subsequent
Cut-off Date) secured by mortgaged properties located in any one zip code; (xi)
no more than 10.00% of the Group IV Subsequent Mortgage Loans will have a credit
score less than 650; (xii) no less than 49.00% of the Group IV Subsequent
Mortgage Loans will have "full documentation"; (xii) will have a weighted
average loan to value ratio between 70.00% and 80.00% and (xiv) no more than
1.00% of such mortgage loans will have a loan to value ratio of greater than
95%.

         Notwithstanding the foregoing, any Group IV Subsequent Mortgage Loan
may be rejected by any Rating Agency if the inclusion of any such Group IV
Subsequent Mortgage Loan would adversely affect the ratings of the Notes. In
addition, minor variances from the characteristics stated above will be
permitted with the consent of the Rating Agencies so long as there are
compensating factors, and the consent of the Rating Agencies to any group of
Group IV Subsequent Mortgage Loans shall mean that the representations and
warranties set forth in subsections (c) and (d) above are accurate; PROVIDED,
HOWEVER, that the information furnished to the Rating Agencies in respect of
such Group IV Subsequent Mortgage Loans is true and correct in all material
respects. The Seller shall deliver to each Rating Agency at least three (3)
Business Days prior to such Subsequent Transfer Date a computer file acceptable
to each Rating Agency describing the characteristics specified in subsections
(c) and (d) above. The Indenture Trustee shall not include any Group IV
Subsequent Mortgage Loans on the applicable Subsequent Transfer Date as to which
it has received notice from any Rating Agency at least one (1) Business Day
prior to such Subsequent Transfer Date that such Mortgage Loan should not be
included in the Group IV Subsequent Mortgage Loans.

         Section 2.10 CONVEYANCE OF THE GROUP V SUBSEQUENT MORTGAGE LOANS. (a)
Subject to the conditions set forth in paragraph (b) below and in consideration
of the Indenture Trustee's delivery on the applicable Subsequent Transfer Dates,
to or upon the written order of the Depositor, of all or a portion of the
balance of funds in the Group V Pre-Funding Account, the Depositor shall, on the
Subsequent Transfer Date, sell, transfer, assign, set over and convey without
recourse to the Trust Estate, but subject to the other terms and provisions of
this Agreement, all of the right, title and interest of the Depositor in and to
(i) the related Group V Subsequent Mortgage Loans identified on the Mortgage
Loan Schedule attached to the related Group V Subsequent Transfer Instrument
delivered by the Depositor on the Subsequent Transfer Date, (ii) all interest
accruing thereon on and after the Subsequent Cut-off Date (with respect to the
Group V Subsequent Mortgage Loans) and all collections in respect of interest
and principal due after the Subsequent Cut-off Date and (iii) all items with
respect to such Group V Subsequent Mortgage Loans to be delivered pursuant to
Section 2.03 and the other items in the related Mortgage Files; PROVIDED,
HOWEVER, that the Depositor reserves and retains all right, title and interest
in and to principal received and interest accruing on the Group V Subsequent
Mortgage Loans prior to the related Subsequent Cut-off Date. The transfer to the
Indenture Trustee for deposit in the Trust Estate by the Depositor of the Group
V Subsequent Mortgage Loans identified on the Mortgage Loan Schedule shall be
absolute and is intended by the Depositor, the RMBS Master Servicer, the RMBS
Servicer, the HELOC Back-Up Servicer, the HELOC Servicer, the Securities
Administrator, the Indenture Trustee and the Noteholders to constitute and to be
treated as a sale of the Group V Subsequent Mortgage Loans by the Depositor to
the Trust Estate. The related Mortgage File for each Group V Subsequent Mortgage
Loan shall be delivered to the Indenture Trustee at least three (3) Business
Days prior to the related Subsequent Transfer Date.

         The purchase price paid by the Indenture Trustee from amounts released
from the Group V Pre-Funding Account shall be one-hundred percent (100%) of the
aggregate Stated Principal Balance of the Group V Subsequent Mortgage Loans so
transferred (as identified on the Mortgage Loan Schedule provided by the
Depositor).

         (b) The Depositor shall transfer to the Indenture Trustee for deposit
in the Trust Estate the applicable Group V Subsequent Mortgage Loans and the
other property and rights related thereto as described in paragraph (a) above,
and the Indenture Trustee shall release such applicable funds from the Group V
Pre-Funding Account, only upon the satisfaction of each of the following
conditions on or prior to the Subsequent Transfer Date:

                  (i) the Depositor shall have provided the Securities
         Administrator, the Indenture Trustee, the Note Insurer and the Rating
         Agencies with a timely Addition Notice, substantially in the form of
         Exhibit G hereto, and shall have provided any information reasonably
         requested by the Indenture Trustee with respect to the Group V
         Subsequent Mortgage Loans;

                  (ii) the Depositor shall have delivered to the Indenture
         Trustee a duly executed Group V Subsequent Transfer Instrument (which
         the Indenture Trustee is hereby authorized to execute), which shall
         include a Mortgage Loan Schedule listing the Group V Subsequent
         Mortgage Loans, and the Seller shall have delivered a computer file
         containing such Mortgage Loan Schedule to the Indenture Trustee at
         least three (3) Business Days prior to the related Subsequent Transfer
         Date;

                  (iii) as of each related Subsequent Transfer Date, as
         evidenced by delivery of the related Group V Subsequent Transfer
         Instrument, substantially in the form of Exhibit F, the Depositor shall
         not be insolvent nor shall it have been rendered insolvent by such
         transfer nor shall it be aware of any pending insolvency;

                  (iv) such sale and transfer shall not result in a material
         adverse tax consequence to the Trust Estate or to the Noteholders;

                  (v) the Funding Period shall not have terminated;

                  (vi) each Mortgage Loan is being serviced by the RMBS Servicer
         under the related Servicing Agreement;

                  (vii) the Depositor shall not have selected the applicable
         Group V Subsequent Mortgage Loans in a manner that it believed to be
         adverse to the interests of the Noteholders or the Note Insurer;

                  (viii) the Depositor shall have delivered to the Indenture
         Trustee the related Group V Subsequent Transfer Instrument confirming
         the satisfaction of all the conditions specified in this Section 2.09
         and, pursuant to such Group V Subsequent Transfer Instrument, assigned
         to the Indenture Trustee without recourse for the benefit of the
         Noteholders all the right, title and interest of the Depositor, in, to
         and under the applicable Group V Subsequent Mortgage Loan Purchase
         Agreement, to the extent of the related Group V Subsequent Mortgage
         Loans;

                  (ix) the Depositor shall have delivered to the Indenture
         Trustee an Opinion of Counsel addressed to the Indenture Trustee, the
         Note Insurer and the Rating Agencies with respect to the transfer of
         the applicable Group V Subsequent Mortgage Loans substantially in the
         form of the Opinion of Counsel delivered to the Indenture Trustee on
         the Closing Date regarding the validity of the conveyance and the true
         sale of such Group V Subsequent Mortgage Loans; and

                  (x) on or before the related Subsequent Transfer Date, the
         Depositor shall have delivered to the Securities Administrator and the
         RMBS Master Servicer a computer file containing the final Mortgage Loan
         Schedule with respect to such subsequent transfer and such additional
         information concerning the Mortgage Loans described therein as may be
         necessary to enable the Securities Administrator and the RMBS Master
         Servicer to perform their respective duties under the Basic Documents.

         (c) The obligation of the Trust Estate to purchase a Group V Subsequent
Mortgage Loan on any Subsequent Transfer Date is subject to the satisfaction of
the conditions set forth in the immediately following paragraph and the accuracy
of the following representations and warranties with respect to each such Group
V Subsequent Mortgage Loan determined as of the applicable Subsequent Cut-off
Date: (i) such mortgage loan may not be 30 or more days delinquent as of the
last day of the month preceding the Subsequent Cut-off Date; (ii) the original
term to stated maturity of such mortgage loan will be 360 months; (iii) each
Group V Subsequent Mortgage Loan must be a fixed rate mortgage loan with a first
lien on the related mortgaged property; (iv) no Group V Subsequent Mortgage Loan
will have a first payment date occurring after September 1, 2005; (v) the latest
maturity date of any Group V Subsequent Mortgage Loan will be no later than
August 1, 2035; (vi) none of the Group V Subsequent Mortgage Loans will be a
buydown loan; (vii) such mortgage loan will have a credit score of not less than
600; (viii) such mortgage loan will have a Mortgage Rate as of the applicable
Subsequent Cut-off Date ranging from approximately 4.60% per annum to
approximately 9.25% per annum; (ix) none of the Group V Subsequent Mortgage
Loans will be a New York State "high cost" loan; and (x) such Group V Subsequent
Mortgage Loan shall have been underwritten in accordance with the criteria set
forth under "The Mortgage Pool--Underwriting Standards" in the Prospectus
Supplement.

         (d) In addition, following the purchase of any Group V Subsequent
Mortgage Loan by the Trust, the applicable Group V Subsequent Mortgage Loans
will as of the related Subsequent Cut-off Date: ((i) have a weighted average
Mortgage Rate ranging from 6.25% to 6.75% per annum; (ii) consist of mortgage
loans with prepayment charges representing no less than approximately 3.00% of
the Pool Balance; (iii) have a weighted average credit score ranging from 685 to
715; (iv) have no more than 19.00% of such mortgage loans concentrated in the
state of California; (v) have no less than 67.00% of the mortgaged properties
securing Group V Subsequent Mortgage Loans be owner occupied; (vi) have no less
than 54.00% of the mortgaged properties securing Group V Subsequent Mortgage
Loans be single family detached and no more than 24.00% planned unit
developments; (vii) have no more than 42.00% of the Group V Subsequent Mortgage
Loans be cash-out refinance; (viii) all of the Group V Subsequent Mortgage Loans
with a loan to value ratio greater than 80% will be covered by a Primary
Insurance Policy; (ix) have no more than 48.00% of the Group V Subsequent
Mortgage Loans be mortgage loans with an interest only period; (x) together with
the Group V Loans already included in the trust, have no more than 1.50% of such
mortgage loans (by aggregate Stated Principal Balance as of the Subsequent
Cut-off Date) secured by mortgaged properties located in any one zip code; (xi)
no more than 10.00% of the Group V Subsequent Mortgage Loans will have a credit
score less than 625; (xii) no less than 15.00% of the Group V Subsequent
Mortgage Loans will have "full documentation"; (xiii) will have a weighted
average loan to value ratio between 68.00% and 77.00% and (xiv) no more than
1.00% of such mortgage loans will have a loan to value ratio of greater than
95%.

         Notwithstanding the foregoing, any Group V Subsequent Mortgage Loan may
be rejected by any Rating Agency if the inclusion of any such Group V Subsequent
Mortgage Loan would adversely affect the ratings of the Notes without taking the
Note Insurance Policy into account. In addition, minor variances from the
characteristics stated above will be permitted with the consent of the Rating
Agencies so long as there are compensating factors, and the consent of the
Rating Agencies to any group of Group V Subsequent Mortgage Loans shall mean
that the representations and warranties set forth in subsections (c) and (d)
above are accurate; PROVIDED, HOWEVER, that the information furnished to the
Rating Agencies in respect of such Group V Subsequent Mortgage Loans is true and
correct in all material respects. The Seller shall deliver to each Rating Agency
at least three (3) Business Days prior to such Subsequent Transfer Date a
computer file acceptable to each Rating Agency describing the characteristics
specified in subsections (c) and (d) above. The Indenture Trustee shall not
include any Group V Subsequent Mortgage Loans on the applicable Subsequent
Transfer Date as to which it has received notice from any Rating Agency at least
one (1) Business Day prior to such Subsequent Transfer Date that such Mortgage
Loan should not be included in the Group V Subsequent Mortgage Loans.

         Section 2.11 CONVEYANCE OF THE GROUP VI SUBSEQUENT HELOC MORTGAGE
LOANS. (a) Subject to the conditions set forth in paragraph (b) below and in
consideration of the Indenture Trustee's delivery on the applicable Subsequent
Transfer Dates, to or upon the written order of the Depositor, of all or a
portion of the balance of funds in the Group VI Pre-Funding Account, the
Depositor shall, on the Subsequent Transfer Date, sell, transfer, assign, set
over and convey without recourse to the Trust Estate, but subject to the other
terms and provisions of this Agreement, all of the right, title and interest of
the Depositor in and to (i) the related Group VI Subsequent HELOC Mortgage Loans
(including all Additional Balances resulting from Draws made pursuant to the
terms of the related Group VI Subsequent HELOC Mortgage Loan prior to the
termination of the Trust) identified on the Mortgage Loan Schedule attached to
the related Group VI Subsequent Transfer Instrument delivered by the Depositor
on the Subsequent Transfer Date, (ii) all interest accruing thereon on and after
the Subsequent Cut-off Date (with respect to the Group VI Subsequent HELOC
Mortgage Loans) and all collections in respect of interest and principal due
after the Subsequent Cut-off Date and (iii) all items with respect to such Group
VI Subsequent HELOC Mortgage Loans to be delivered pursuant to Section 2.03 and
the other items in the related Mortgage Files; PROVIDED, HOWEVER, that the
Depositor reserves and retains all right, title and interest in and to principal
received and interest accruing on the Group VI Subsequent HELOC Mortgage Loans
prior to the related Subsequent Cut-off Date. The transfer to the Indenture
Trustee for deposit in the Trust Estate by the Depositor of the Group VI
Subsequent HELOC Mortgage Loans identified on the Mortgage Loan Schedule shall
be absolute and is intended by the Depositor, the RMBS Master Servicer, the RMBS
Servicer, the HELOC Back-Up Servicer, the HELOC Servicer, the Securities
Administrator, the Indenture Trustee and the Noteholders to constitute and to be
treated as a sale of the Group VI Subsequent HELOC Mortgage Loans by the
Depositor to the Trust Estate. The related Mortgage File for each Group VI
Subsequent HELOC Mortgage Loan shall be delivered to the Indenture Trustee at
least three (3) Business Days prior to the related Subsequent Transfer Date.

         The purchase price paid by the Indenture Trustee from amounts released
from the Group VI Pre-Funding Account shall be one-hundred percent (100%) of the
aggregate Stated Principal Balance of the Group VI Subsequent HELOC Mortgage
Loans so transferred (as identified on the Mortgage Loan Schedule provided by
the Depositor).

         (b) The Depositor shall transfer to the Indenture Trustee for deposit
in the Trust Estate the applicable Group VI Subsequent HELOC Mortgage Loans and
the other property and rights related thereto as described in paragraph (a)
above, and the Indenture Trustee shall release such applicable funds from the
Group VI Pre-Funding Account, only upon the satisfaction of each of the
following conditions on or prior to the Subsequent Transfer Date:

                  (i) the Depositor shall have provided the Indenture Trustee,
         the Securities Administrator, the Insurer and the Rating Agencies with
         a timely Addition Notice, substantially in the form of Exhibit G
         hereto, and shall have provided any information reasonably requested by
         the Indenture Trustee with respect to the Group VI Subsequent HELOC
         Mortgage Loans;

                  (ii) the Depositor shall have delivered to the Indenture
         Trustee a duly executed Group VI Subsequent Transfer Instrument (which
         the Indenture Trustee is hereby authorized to execute), which shall
         include a Mortgage Loan Schedule listing the Group VI Subsequent HELOC
         Mortgage Loans and shall have delivered or cause to be delivered a
         computer file containing such Mortgage Loan Schedule to the Indenture
         Trustee at least three (3) Business Days prior to the related
         Subsequent Transfer Date;

                  (iii) as of each Subsequent Transfer Date, as evidenced by
         delivery of the related Group VI Subsequent Transfer Instrument,
         substantially in the form of Exhibit F, the Depositor shall not be
         insolvent nor shall it have been rendered insolvent by such transfer
         nor shall it be aware of any pending insolvency;

                  (iv) such sale and transfer shall not result in a material
         adverse tax consequence to the Trust Estate or to the Noteholders;

                  (v) the Funding Period shall not have terminated;

                  (vi) each HELOC is being serviced by the HELOC Servicer under
         the related Servicing Agreement;

                  (vii) the Depositor shall not have selected the applicable
         Group VI Subsequent HELOC Mortgage Loans in a manner that it believed
         to be adverse to the interests of the Noteholders or the Insurer;

                  (viii) the Depositor shall have delivered to the Indenture
         Trustee the related Group VI Subsequent Transfer Instrument confirming
         the satisfaction of all the conditions specified in this Section 2.10
         and, pursuant to such Group VI Subsequent Transfer Instrument, assigned
         to the Indenture Trustee without recourse for the benefit of the Class
         VI-A Noteholders and the Insurer all the right, title and interest of
         the Depositor, in, to and under the applicable Group VI Subsequent
         HELOC Mortgage Loan Purchase Agreement, to the extent of the related
         Group VI Subsequent HELOC Mortgage Loans;

                  (ix) the Depositor shall have delivered to the Indenture
         Trustee an Opinion of Counsel addressed to the Indenture Trustee, the
         Insurer and the Rating Agencies with respect to the transfer of the
         applicable Group VI Subsequent HELOC Mortgage Loans substantially in
         the form of the Opinion of Counsel delivered to the Indenture Trustee
         on the Closing Date regarding the validity of the conveyance and the
         true sale of such Group VI Subsequent HELOC Mortgage Loans; and

                  (x) on or before the related Subsequent Transfer Date, the
         Depositor shall have delivered to the Securities Administrator a
         computer file containing the final Mortgage Loan Schedule with respect
         to such subsequent transfer and such additional information concerning
         the Mortgage Loans described therein as may be necessary to enable the
         Securities Administrator to perform its respective duties under the
         Basic Documents.

         (c) The obligation of the Trust Estate to purchase a Group VI
Subsequent HELOC Mortgage Loan on any Subsequent Transfer Date is subject to the
satisfaction of the conditions set forth in the immediately following paragraph
and the accuracy of the following representations and warranties with respect to
each such Group VI Subsequent HELOC Mortgage Loan determined as of the
applicable Subsequent Cut-off Date: (i) such HELOC may not be 30 or more days
delinquent as of the Subsequent Transfer Date; (ii) the remaining term to stated
maturity of such HELOC will not exceed 300 months; (iii) such HELOC will be
secured by a mortgage in a first or second lien position; (iv) such HELOC will
have a fully-indexed margin between 0.000% and 7.000%; (v) each HELOC will have
a credit limit less than $550,000; (vi) each HELOC will have a combined
loan-to-value ratio less than or equal to 101%; (vii) each HELOC will have a
credit limit utilization rate less than or equal to 101%; (viii) each HELOC will
have a credit score greater than or equal to 600; (ix) no HELOC will provide for
negative amortization; and (x) such HELOC Mortgage Loan shall have been
underwritten substantially in accordance with the criteria set forth under
"Description of the Mortgage Pool--Underwriting Standards" in the Prospectus.

         (d) In addition, following the purchase of any Group VI Subsequent
HELOC Mortgage Loan by the Trust, the applicable Group VI Subsequent HELOC
Mortgage Loans will as of the related Subsequent Cut-off Date: (i) a weighted
average fully-indexed margin of at least 1.510%; (ii) a weighted average
combined loan-to-value ratio of no more than 92.00%; (iii) a weighted average
credit score of 723 or greater; (iv) at least 60.00% of the Group VI Subsequent
HELOC Mortgage Loans will be secured by a single family residence; (v) at least
95.00% of the Group VI Subsequent HELOC Mortgage Loans will be secured by an
owner-occupied property; (vi) no more than 28.00% of the pool will have a loan
purpose of cash-out refinance; (vii) cash-out refinance loans will have a
maximum weighted average CLTV of 85.00%; (viii) no more than 7.00% of the pool
will have a credit score less than 660; (ix) no less than 70.00% of the pool
will have "full documentation"; (x) no more than 29.00% of the Group VI
Subsequent HELOC Mortgage Loans will be in the state of California; and (xi) no
more than 10.00% of the Group VI Subsequent HELOC Mortgage Loans will be in any
state other than California.

         Notwithstanding the foregoing, any Group VI Subsequent HELOC Mortgage
Loan may be rejected by any Rating Agency or the Insurer if the inclusion of any
such Group VI Subsequent HELOC Mortgage Loan would adversely affect the ratings
of the Class VI-A Notes without taking the Insurance Policy into account. Also,
the Insurer must approve the Group VI Subsequent HELOC Mortgage Loans, which
consent shall not be unreasonably withheld. In addition, minor variances from
the characteristics stated above will be permitted with the consent of the
Rating Agencies and the Insurer so long as there are compensating factors, and
the consent of the Rating Agencies and the Insurer to any group of Group VI
Subsequent HELOC Mortgage Loans shall mean that the representations and
warranties set forth in subsections (c) and (d) above are accurate; PROVIDED,
HOWEVER, that the information furnished to the Rating Agencies and the Insurer
in respect of such Group VI Subsequent HELOC Mortgage Loans is true and correct
in all material respects. The Seller shall deliver or caused to be delivered o
each Rating Agency and the Insurer at least three (3) Business Days prior to
such Subsequent Transfer Date a computer file acceptable to each Rating Agency
and the Insurer describing the characteristics specified in subsections (c) and
(d) above. The Indenture Trustee shall not include any Group VI Subsequent HELOC
Mortgage Loans on the applicable Subsequent Transfer Date as to which it has
received notice from any Rating Agency or the Insurer at least one (1) Business
Day prior to such Subsequent Transfer Date that such Mortgage Loan should not be
included in the Group VI Subsequent Mortgage Loans.

<PAGE>

                                   ARTICLE III

                                    COVENANTS

         Section 3.01 COLLECTION OF PAYMENTS WITH RESPECT TO THE MORTGAGE LOANS
AND HELOC MORTGAGE LOANS. The Indenture Trustee shall establish and maintain an
Eligible Account (the "Payment Account") in which the Indenture Trustee shall
deposit, on the same day as it is received from the Securities Administrator or
the HELOC Servicer, each remittance received by the Indenture Trustee with
respect to the Mortgage Loans and HELOC Mortgage Loans. The Indenture Trustee
shall make all payments of principal of and interest on the Notes, subject to
Section 3.03, and as provided in Section 3.05 herein, from monies on deposit in
the Payment Account. The Securities Administrator shall remit such funds to the
Indenture Trustee no later than one Business Day prior to the Payment Date.

         Section 3.02 MAINTENANCE OF OFFICE OR AGENCY. The Issuer will maintain
an office or agency where, subject to satisfaction of conditions set forth
herein, Notes may be surrendered for registration of transfer or exchange, and
where notices and demands to or upon the Issuer in respect of the Notes and this
Indenture may be served. The Issuer hereby initially appoints the Indenture
Trustee to serve as its agent for the foregoing purposes. If at any time the
Issuer shall fail to maintain any such office or agency or shall fail to furnish
the Indenture Trustee with the address thereof, such surrenders may be made at
the office of the Indenture Trustee located at c/o DTC Transfer Agent Services,
55 Water Street, Jeanette Park Entrance, New York, New York 10041, and notices
and demands may be made or delivered at the Corporate Trust Office, and the
Issuer hereby appoints the Indenture Trustee as its agent to receive all such
surrenders, notices and demands.

         Section 3.03 MONEY FOR PAYMENTS TO BE HELD IN TRUST; PAYING AGENT. (a)
As provided in Section 3.01, all payments of amounts due and payable with
respect to any Notes that are to be made from amounts withdrawn from the Payment
Account pursuant to Section 3.01 shall be made on behalf of the Issuer by the
Indenture Trustee or by the Paying Agent, and no amounts so withdrawn from the
Payment Account for payments of Notes shall be paid over to the Issuer except as
provided in this Section 3.03. The Issuer hereby appoints the Indenture Trustee
as its Paying Agent.

           The Issuer will cause each Paying Agent other than the Indenture
Trustee to execute and deliver to the Indenture Trustee an instrument in which
such Paying Agent shall agree with the Indenture Trustee (and if the Indenture
Trustee acts as Paying Agent it hereby so agrees), subject to the provisions of
this Section 3.03, that such Paying Agent will:

         (a) hold all sums held by it for the payment of amounts due with
respect to the Notes in trust for the benefit of the Persons entitled thereto
until such sums shall be paid to such Persons or otherwise disposed of as herein
provided and pay such sums to such Persons as herein provided;

         (b) give the Indenture Trustee, the Note Insurer and the Insurer notice
of any default by the Issuer of which it has actual knowledge in the making of
any payment required to be made with respect to the Notes;

         (c) at any time during the continuance of any such default, upon the
written request of the Indenture Trustee, forthwith pay to the Indenture Trustee
all sums so held in trust by such Paying Agent;

         (d) immediately resign as Paying Agent and forthwith pay to the
Indenture Trustee all sums held by it in trust for the payment of Notes if at
any time it ceases to meet the standards required to be met by a Paying Agent at
the time of its appointment;

         (e) comply with all requirements of the Code with respect to the
withholding from any payments made by it on any Notes of any applicable
withholding taxes imposed thereon and with respect to any applicable reporting
requirements in connection therewith; and

         (f) not commence a bankruptcy proceeding against the Issuer in
connection with this Indenture.

         The Issuer may at any time, for the purpose of obtaining the
satisfaction and discharge of this Indenture or for any other purpose, by Issuer
Request direct any Paying Agent to pay to the Indenture Trustee all sums held in
trust by such Paying Agent, such sums to be held by the Indenture Trustee upon
the same trusts as those upon which the sums were held by such Paying Agent; and
upon such payment by any Paying Agent to the Indenture Trustee, such Paying
Agent shall be released from all further liability with respect to such money.

         Subject to applicable laws with respect to escheat of funds, any money
held by the Indenture Trustee or any Paying Agent in trust for the payment of
any amount due with respect to any Note (other than amounts paid under the Note
Insurance Policy or Insurance Policy) and remaining unclaimed for one year after
such amount has become due and payable shall be discharged from such trust and
be paid to the Issuer; and the Holder of such Note shall thereafter, as an
unsecured general creditor, look only to the Issuer for payment thereof (but
only to the extent of the amounts so paid to the Issuer), and all liability of
the Indenture Trustee or such Paying Agent with respect to such trust money
shall thereupon cease; PROVIDED, HOWEVER, that the Indenture Trustee or such
Paying Agent, before being required to make any such repayment, shall at the
expense and direction of the Issuer cause to be published once, in an Authorized
Newspaper published in the English language, notice that such money remains
unclaimed and that, after a date specified therein which shall not be less than
30 days from the date of such publication, any unclaimed balance of such money
then remaining will be repaid to the Issuer. The Indenture Trustee, with the (i)
written consent of the Insurer respecting the Class VI-A Notes, so long as the
Insurer is not in default under the Insurance Policy and (ii) written consent of
the Note Insurer respecting the Class V-A-4-D Notes, so long as the Note Insurer
is not in default under the Note Insurance Policy, may also adopt and employ, at
the expense and direction of the Issuer, any other reasonable means of
notification of such repayment (including, but not limited to, mailing notice of
such repayment to Holders whose Notes have been called but have not been
surrendered for redemption or whose right to or interest in monies due and
payable but not claimed is determinable from the records of the Indenture
Trustee or of any Paying Agent, at the last address of record for each such
Holder).

         Section 3.04 EXISTENCE. The Issuer will keep in full effect its
existence, rights and franchises as a statutory trust under the laws of the
State of Delaware (unless it becomes, or any successor Issuer hereunder is or
becomes, organized under the laws of any other state or of the United States of
America, in which case the Issuer will keep in full effect its existence, rights
and franchises under the laws of such other jurisdiction) and will obtain and
preserve its qualification to do business in each jurisdiction in which such
qualification is or shall be necessary to protect the validity and
enforceability of this Indenture, the Notes, the Mortgage Loans and each other
instrument or agreement included in the Trust Estate.

         Section 3.05 PAYMENT OF GROUP I, GROUP II-C, GROUP II-NC, GROUP III AND
GROUP IV AVAILABLE FUNDS.

         (a) On each Payment Date from amounts on deposit in the Payment Account
in accordance with Section 8.02 hereof, the Indenture Trustee shall pay to the
Persons specified below, to the extent provided therein in accordance with the
statement furnished by the Securities Administrator pursuant to Section 7.05
hereof for such Payment Date, the Available Funds for such Payment Date.

         (b) On each Payment Date, the Indenture Trustee shall withdraw from the
Payment Account the Group I, Group II-C, Group II-NC, Group III and Group IV
Available Funds for such Payment Date and make the following payments in the
order of priority described below, in each case to the extent of the related
Group I, Group II-C, Group II-NC, Group III and Group IV Available Funds
remaining for such Payment Date:

                  (i) concurrently

                  (A) from the Group I Available Funds, concurrently to the
                  Holders of the Class I-A Notes, pro rata, based on their
                  respective entitlements, the related Accrued Note Interest for
                  such Classes for such Payment Date, plus any related Unpaid
                  Interest Shortfall for such Payment Date;

                  (B) from the Group II-C Available Funds, concurrently to the
                  Holders of the Class II-A-1 Notes and Component II-A-3-C of
                  the Class II-A-3 Notes, pro rata, based on their respective
                  entitlements, the related Accrued Note Interest for such Class
                  or related Accrued Component Interest for such component for
                  such Payment Date, plus any related Unpaid Interest Shortfall
                  for such Payment Date;

                  (C) from the Group II-NC Available Funds, concurrently to the
                  Holders of the Class II-A-2 Notes and Component II-A-3-NC of
                  the Class II-A-3 Notes, pro rata, based on their respective
                  entitlements, the related Accrued Note Interest for such Class
                  or related Accrued Component Interest for such component for
                  such Payment Date, plus any related Unpaid Interest Shortfall
                  for such Payment Date

                  (D) from the Group III Available Funds, to the Holders of the
                  Class III-A Notes, the related Accrued Note Interest for such
                  Class for such Payment Date, plus any related Unpaid Interest
                  Shortfall for such Payment Date; and

                  (E) from the Group IV Available Funds, concurrently to the
                  holders of the Class IV-A Notes, pro rata, based on their
                  respective entitlements, the related Accrued Note Interest for
                  such Classes for such Payment Date, plus any related Unpaid
                  Interest Shortfall for such Payment Date;

                  (ii) from the remaining Group 1, Group II-C, Group II-NC,
         Group III and Group IV Available Funds for such Payment Date, to the
         Class I-A, Class II-A-1, Class II-A-2, Class III-A and Class IV-A Notes
         and Class II-A-3 Components, pro rata, based on entitlement, any
         remaining unpaid Accrued Note Interest and Unpaid Interest Shortfall
         for such Payment Date;

                  (iii) from the remaining Group I, Group II-C, Group II-NC,
         Group III and Group IV Available Funds for such Payment Date, to the
         Holders of the Class M-1 Notes, the related Accrued Note Interest for
         such Class for such Payment Date;

                  (iv) from the remaining Group I, Group II-C, Group II-NC,
         Group III and Group IV Available Funds for such Payment Date, to the
         Holders of the Class M-2 Notes, the related Accrued Note Interest for
         such Class for such Payment Date;

                  (v) from the remaining Group I, Group II-C, Group II-NC, Group
         III and Group IV Available Funds for such Payment Date, to the Holders
         of the Class M-3 Notes, the related Accrued Note Interest for such
         Class for such Payment Date;

                  (vi) from the remaining Group I, Group II-C, Group II-NC,
         Group III and Group IV Available Funds for such Payment Date, to the
         Holders of the Class M-4 Notes, the related Accrued Note Interest for
         such Class for such Payment Date;

                  (vii) from the remaining Group I, Group II-C, Group II-NC,
         Group III and Group IV Available Funds for such Payment Date, to the
         Holders of the Class M-5 Notes, the related Accrued Note Interest for
         such Class for such Payment Date; and

                  (viii) any remainder (to the extent not included as a part of
         the related Principal Distribution Amount as provided in Section
         3.05(c) and (d) below) shall be included in the related Net Monthly
         Excess Cashflow and allocated as described in Section 3.05(e) below.

         (c) On each Payment Date (a) prior to the related Stepdown Date or (b)
on which a related Trigger Event is in effect, the Holders of each Class of
Class I-A, Class II-A, Class III-A, Class IV-A, Class M and Class B Notes shall
be entitled to receive payments in respect of principal to the extent of the
related Principal Distribution Amount in the following amounts and order of
priority:

                  (i) concurrently, the applicable Class A Principal Allocation
         Fraction of the related Principal Distribution Amount shall be
         allocated to the Class I-A Notes, Class II-A-1 Notes and Component
         II-A-3-C, Class II-A-2 Notes and Component II-A-3-NC, Class III-A and
         Class IV-A Notes, until the Note Principal Balances or Component
         Principal Balances thereof have been reduced to zero, with any amounts
         payable to the Class I-A Notes payable to the Class I-A-1, Class I-A-2
         and Class I-A-3 Notes, pro rata, based on their respective Note
         Principal Balances, with amounts payable to the Class II-A-1 Notes and
         Component II-A-3-C payable to the Class II-A-1 Notes and Component
         II-A-3-C, pro rata, based on their Note Principal Balance or Component
         Principal Balance, with amounts payable to the Class II-A-2 Notes and
         Component II-A-3-NC payable to the Class II-A-2 Notes and Component
         II-A-3-NC, pro rata, based on their Note Principal Balance or Component
         Principal Balance, and with any amounts payable to the Class IV-A Notes
         payable to the Class IV-A-1, Class IV-A-2 and Class IV-A-3 Notes, pro
         rata, based on their respective Note Principal Balances;

                  (ii) concurrently, any remaining related Principal
         Distribution Amount shall be distributed to the Class I-A Notes, Class
         II-A-1 Notes and Component II-A-3-C, Class II-A-2 Notes and Component
         II-A-3-NC, Class III-A and Class IV-A Notes on a pro rata basis, based
         on the Note Principal Balances or Component Principal Balances thereof,
         as applicable, until the Note Principal Balances thereof have been
         reduced to zero, with any amounts payable to the Class I-A Notes
         payable to the Class I-A-1, Class I-A-2 and Class I-A-3 Notes, pro
         rata, based on their respective Note Principal Balances, with amounts
         payable to the Class II-A-1 Notes and Component II-A-3-C payable to the
         Class II-A-1 Notes and Component II-A-3-C, pro rata, based on their
         Note Principal Balance or Component Principal Balance, with amounts
         payable to the Class II-A-2 Notes and Component II-A-3-NC payable to
         the Class II-A-2 Notes and Component II-A-3-NC, pro rata, based on
         their Note Principal Balance or Component Principal Balance, and with
         any amounts payable to the Class IV-A Notes payable to the Class
         IV-A-1, Class IV-A-2 and Class IV-A-3 Notes, pro rata, based on their
         respective Note Principal Balances;

                  (iii) any remaining related Principal Distribution Amount, to
         the Class M-1 Notes until the Note Principal Balance of such Class is
         reduced to zero;

                  (iv) any remaining related Principal Distribution Amount, to
         the Class M-2 Notes until the Note Principal Balance of such Class is
         reduced to zero;

                  (v) any remaining related Principal Distribution Amount, to
         the Class M-3 Notes until the Note Principal Balance of such Class is
         reduced to zero;

                  (vi) any remaining related Principal Distribution Amount, to
         the Class M-4 Notes until the Note Principal Balance of such Class is
         reduced to zero; (vii) any remaining related Principal Distribution
         Amount, to the Class M-5 Notes until the Note Principal Balance of such
         Class is reduced to zero;

                  (viii) any remaining related Principal Distribution Amount, to
         the Class B Notes until the Note Principal Balance of such Class is
         reduced to zero; and

                  (ix) any remainder as part of the related Net Monthly Excess
         Cashflow to be allocated as described in Section 3.05(e) below.

         (d) On each Payment Date (a) on or after the related Stepdown Date and
(b) on which a related Trigger Event is not in effect, the Holders of each Class
of Class I-A, Class II-A, Class III-A, Class IV-A, Class M Notes and Class B
Notes shall be entitled to receive payments in respect of principal to the
extent of the Principal Distribution Amount in the following amounts and order
of priority:

                  (i) concurrently, the related Class A Principal Allocation
         Fraction of the Class A Principal Distribution Amount shall be
         allocated to the Class I-A Notes, Class II-A-1 Notes and Component
         II-A-3-C, Class II-A-2 Notes and Component II-A-3-NC, Class III-A and
         Class IV-A Notes, until the Note Principal Balances or Component
         Principal Balances thereof have been reduced to zero, with any amounts
         payable to the Class I-A Notes payable to the Class I-A-1, Class I-A-2
         and Class I-A-3 Notes, pro rata, based on their respective Note
         Principal Balances, with amounts payable to the Class II-A-1 Notes and
         Component II-A-3-C payable to the Class II-A-1 Notes and Component
         II-A-3-C, pro rata, based on their Note Principal Balance or Component
         Principal Balance, with amounts payable to the Class II-A-2 Notes and
         Component II-A-3-NC payable to the Class II-A-2 Notes and Component
         II-A-3-NC, pro rata, based on their Note Principal Balance or Component
         Principal Balance, and with any amounts payable to the Class IV-A Notes
         payable to the Class IV-A-1, Class IV-A-2 and Class IV-A-3 Notes, pro
         rata, based on their respective Note Principal Balances;

                  (ii) concurrently, any remaining Class A Principal
         Distribution Amount shall be distributed to the Class I-A Notes, Class
         II-A-1 Notes and Component II-A-3-C, Class II-A-2 Notes and Component
         II-A-3-NC, Class III-A and Class IV-A Notes on a pro rata basis, based
         on the Note Principal Balances or Component Principal Balances thereof,
         as applicable, until the Note Principal Balances thereof have been
         reduced to zero, with any amounts payable to the Class I-A Notes
         payable to the Class I-A-1, Class I-A-2 and Class I-A-3 Notes, pro
         rata, based on their respective Note Principal Balances, with amounts
         payable to the Class II-A-1 Notes and Component II-A-3-C payable to the
         Class II-A-1 Notes and Component II-A-3-C, pro rata, based on their
         Note Principal Balance or Component Principal Balance, with amounts
         payable to the Class II-A-2 Notes and Component II-A-3-NC payable to
         the Class II-A-2 Notes and Component II-A-3-NC, pro rata, based on
         their Note Principal Balance or Component Principal Balance, and with
         any amounts payable to the Class IV-A Notes payable to the Class
         IV-A-1, Class IV-A-2 and Class IV-A-3 Notes, pro rata, based on their
         respective Note Principal Balances;

                  (iii) any remaining related Principal Distribution Amount
         shall be distributed to the Class M-1 Notes, in an amount up to the
         Class M-1 Principal Distribution Amount, until the Note Principal
         Balance thereof has been reduced to zero;

                  (iv) any remaining related Principal Distribution Amount shall
         be distributed to the Class M-2 Notes, in an amount up to the Class M-2
         Principal Distribution Amount, until the Note Principal Balance thereof
         has been reduced to zero;

                  (v) any remaining related Principal Distribution Amount shall
         be distributed to the Class M-3 Notes, in an amount up to the Class M-3
         Principal Distribution Amount, until the Note Principal Balance thereof
         has been reduced to zero;

                  (vi) any remaining related Principal Distribution Amount shall
         be distributed to the Class M-4 Notes, in an amount up to the Class M-4
         Principal Distribution Amount, until the Note Principal Balance thereof
         has been reduced to zero;

                  (vii) any remaining related Principal Distribution Amount
         shall be distributed to the Class M-5 Notes, in an amount up to the
         Class M-5 Principal Distribution Amount, until the Note Principal
         Balance thereof has been reduced to zero;

                  (viii) any remaining related Principal Distribution Amount
         shall be distributed to the Class B Notes, in an amount up to the Class
         B Principal Distribution Amount, until the Note Principal Balance
         thereof has been reduced to zero; and

                  (ix) any remainder as part of the related Net Monthly Excess
         Cashflow to be allocated as described in Section 3.05(e) below.

         (e) On each Payment Date, any Net Monthly Excess Cashflow for the Group
I, Group II-C, Group II-NC, Group III and Group IV Loans shall be paid, in each
case to the extent of remaining related Net Excess Monthly Cashflow, as follows:

                  (i) to the Holders of the Class I-A, Class II-A-1, Class
         II-A-2, Class III-A, Class IV-A, Class M and Class B Notes and Class
         II-A-3 Components in an amount equal to the related
         Overcollateralization Increase Amount, payable to such Holders as part
         of the related Principal Distribution Amount as provided in 3.05(c) and
         (d) above;

                  (ii) to the Holders of the Class I-A-2, Class I-A-3 and Class
         IV-A-3 Notes, on a pro rata basis, based on the amount of Allocated
         Realized Loss Amount for such Notes, an amount equal to the Allocated
         Realized Loss Amount for such Notes, to the extent not previously
         reimbursed

                  (iii) to the Holders of the Class M-1 Notes, first, an amount
         equal to any related Unpaid Interest Shortfalls for such Notes, and
         second, an amount equal to any related Allocated Realized Loss Amount
         for such Notes, in each case to the extent not previously reimbursed;

                  (iv) to the Holders of the Class M-2 Notes, first, an amount
         equal to any related Unpaid Interest Shortfalls for such Notes, and
         second, an amount equal to any related Allocated Realized Loss Amount
         for such Notes, in each case to the extent not previously reimbursed;

                  (v) to the Holders of the Class M-3 Notes, first, an amount
         equal to any related Unpaid Interest Shortfalls for such Notes, and
         second, an amount equal to any related Allocated Realized Loss Amount
         for such Notes, in each case to the extent not previously reimbursed;

                  (vi) to the Holders of the Class M-4 Notes, first, an amount
         equal to any related Unpaid Interest Shortfalls for such Notes, and
         second, an amount equal to any related Allocated Realized Loss Amount
         for such Notes, in each case to the extent not previously reimbursed;

                  (vii) to the Holders of the Class M-5 Notes, first, an amount
         equal to any related Unpaid Interest Shortfalls for such Notes, and
         second, an amount equal to any related Allocated Realized Loss Amount
         for such Notes, in each case to the extent not previously reimbursed;

                  (viii) to the Holders of the Class B Notes, an amount equal to
         any related Allocated Realized Loss Amount for such Notes, in each case
         to the extent not previously reimbursed;

                  (ix) to the Holders of the Class I-A, Class II-A-1, Class
         II-A-2, Class III-A and Class IV-A Notes and Class II-A-3 Components,
         on a pro rata basis, based on the amount of any related Basis Risk
         Shortfall Carry-Forward Amount or Net WAC Shortfall Carry-Forward
         Amount for such Notes or Components on such Payment Date, any related
         Basis Risk Shortfall Carry-Forward Amount or Net WAC Shortfall
         Carry-Forward Amount for such Notes or Components on such Payment Date,
         to the extent not covered by the Corridor Contract or Excess Derivative
         Payment Amount and Cap Contract as provided in Section 3.05(g) and
         3.06(f) below;

                  (x) sequentially to the holders of the Class M-1, Class M-2,
         Class M-3, Class M-4 and Class M-5 Notes, any related Basis Risk
         Shortfall Carry-Forward Amount for such Notes on such Payment Date, to
         the extent not covered by the Corridor Contract or Excess Derivative
         Payment Amount and Cap Contract as provided in Section 3.05(g) and
         3.06(f) below;

                  (xi) to the Note Insurer, the aggregate of all payments, if
         any, made by the Note Insurer under the Note Insurance Policy with
         respect to the Class V-A-4-D Notes, including interest thereon, to the
         extent not previously paid or reimbursed or covered under Section
         3.06(e) below;

                  (xii) up to and including the Payment Date in September 2035,
         to the Class V-A, Class V-M and Class V-B Notes, to be included in the
         related Net Monthly Excess Cashflow as described in Section 3.06(e)
         below;

                  (xiii) until the Note Principal Balances of the Class N Notes
         have been reduced to zero, to the Holders of the Class N Notes as
         provided in Section 3.09; and

                  (xiv) any remaining amounts will be distributed to the
         Certificate Paying Agent, as designee of the Issuer, for the benefit of
         the Holders of the Trust Certificates, as provided herein and in the
         Trust Agreement.

         (f) On each Payment Date, any payments received from the Cap Contract
Counterparty with respect to the Cap Contract with respect to such Payment Date
will be allocated and paid in the following order of priority, in each case to
the extent of amounts remaining:

                  (i) the amount received from the Cap Contract shall be
         allocated and paid first to the Class V-A-2 Notes, in reduction of any
         related Basis Risk Shortfall Carry-Forward Amount for such Class for
         that Payment Date; and

                  (ii) from any amounts remaining from the Cap Contract, as part
         of the Excess Derivative Payment Amount, to be paid as described in
         Section 3.05(g) below.

         (g) On each Payment Date, any payments received from the Corridor
Contract Counterparty with respect to the Corridor Contract with respect to such
Payment Date will be allocated and paid in the following order of priority, in
each case to the extent of amounts remaining:

                  (i) first, the amount received from the Corridor Contract will
         be allocated and paid to the Class II-A-1 Notes, Class II-A-2 Notes and
         Class II-A-3 Components, pro rata, base don entitlement, in reduction
         of any related Basis Risk Shortfall Carry-Forward Amount for such Class
         for that Payment Date; and

                  (ii) any remaining amounts from the Corridor Contract shall be
         included in the Excess Derivative Payment Amount and shall be paid as
         provided in the following paragraph.

                  On each Payment Date, the Excess Derivative Payment Amount
shall be paid as follows, in each case to the extent of amounts remaining:

                  (i) first, to the Class I-A-1, Class II-A-1, Class II-A-2,
         Class III-A, Class IV-A and Class V-A Notes and the Class II-A-3
         Components, pro rata, based on entitlement, in reduction of any
         remaining related Basis Risk Shortfall Carry-Forward Amount or Net WAC
         Shortfall Carry-Forward Amount, as applicable, for such Class or
         Classes or component or components for that Payment Date;

                  (ii) second, to the Class M-1, Class V-M-1 and Class V-M-2
         Notes, pro rata, based on entitlement, in reduction of any remaining
         related Basis Risk Shortfall Carry-Forward Amount for such Class or
         Classes for that Payment Date;

                  (iii) third, to the Class M-2, Class M-3 and Class V-M-3
         Notes, pro rata, based on entitlement, in reduction of any remaining
         related Basis Risk Carry-Forward Amount for such Class or Classes for
         that Payment Date; and

                  (iv) fourth, any remaining amounts will be distributed to the
         Certificate Paying Agent, as designee of the Issuer, for the benefit of
         the Holders of the Trust Certificates, as provided herein and in the
         Trust Agreement.

         Section 3.06 PAYMENT OF GROUP V AVAILABLE FUNDS.

         (a) On each Payment Date from amounts on deposit in the Payment Account
in accordance with Section 8.02 hereof, the Indenture Trustee shall pay to the
Persons specified below, to the extent provided therein in accordance with the
statement furnished by the Securities Administrator pursuant to Section 7.05
hereof for such Payment Date, the Group V Available Funds and Class V-A-4-D
Insured Amount, if any, for such Payment Date.

         (b) On each Payment Date, the Indenture Trustee shall withdraw from the
Payment Account the Group V Available Funds and Class V-A-4-D Insured Amount, if
any, for such Payment Date and make the following payments in the manner and
order of priority described below, in each case to the extent of the Group V
Available Funds and Class V-A-4-D Insured Amount, if any, remaining for such
Payment Date:

                  (i) to the Holders of the Class V-A Notes, pro rata, based on
         their respective entitlements, the related Accrued Note Interest for
         each such Class for such Payment Date, plus any related Unpaid Interest
         Shortfall for such Payment Date; including, in the case of the Class
         V-A-4-D Notes, the Class V-A-4-D Insured Amount, if any;

                  (ii) from the remaining Group V Available Funds for such
         Payment Date, to the Holders of the Class V-M-1 Notes, the related
         Accrued Note Interest for such Class for such Payment Date;

                  (iii) from the remaining Group V Available Funds for such
         Payment Date, to the Holders of the Class V-M-2 Notes, the related
         Accrued Note Interest for such Class for such Payment Date;

                  (iv) from the remaining Group V Available Funds for such
         Payment Date, to the Holders of the Class V-M-3 Notes, the related
         Accrued Note Interest for such Class for such Payment Date;

                  (v) from the remaining Group V Available Funds for such
         Payment Date, to the Holders of the Class V-M-4 Notes, the related
         Accrued Note Interest for such Class for such Payment Date;

                  (vi) from the remaining Group V Available Funds for such
         Payment Date, to the Holders of the Class V-M-5 Notes, the related
         Accrued Note Interest for such Class for such Payment Date;

                  (vii) from the remaining Group V Available Funds for such
         Payment Date, to the Holders of the Class V-B Notes, the related
         Accrued Note Interest for such Class for such Payment Date; and

                  (viii) any remainder (to the extent not included as a part of
         the related Principal Distribution Amount as provided in Section
         3.06(c) and (d) below) shall be included in the related Net Monthly
         Excess Cashflow and allocated as described in Section 3.06(e) below.

         (c) On each Payment Date (a) prior to the related Stepdown Date or (b)
on which a related Trigger Event is in effect, the Holders of each Class of
Class V-A, Class V-M and Class V-B Notes shall be entitled to receive payments
in respect of principal to the extent of the related Principal Distribution
Amount in the following amounts and order of priority:

                  (i) from the related Principal Distribution Amount, the Class
         V-A-1 Priority Amount shall be distributed to the Class V-A-1 Notes
         until the Note Principal Balance thereof has been reduced to zero;

                  (ii) any remaining related Principal Distribution Amount shall
         be distributed sequentially to the Class V-A-2, Class V-A-3, Class
         V-A-4 and Class V-A-1 Notes, in that order, in each until the Note
         Principal Balance thereof has been reduced to zero, with any amounts
         payable to the Class V-A-4 Notes payable to the Class V-A-4-A, Class
         V-A-4-B, Class V-A-4-C Notes and Class V-A-4-D Notes, pro rata, based
         on their respective Note Principal Balances;

                  (iii) any remaining related Principal Distribution Amount, to
         the Class V-M-1 Notes until the Note Principal Balance of such Class is
         reduced to zero

                  (iv) any remaining related Principal Distribution Amount, to
         the Class V-M-2 Notes until the Note Principal Balance of such Class is
         reduced to zero

                  (v) any remaining related Principal Distribution Amount, to
         the Class V-M-3 Notes until the Note Principal Balance of such Class is
         reduced to zero;

                  (vi) any remaining related Principal Distribution Amount, to
         the Class V-M-4 Notes until the Note Principal Balance of such Class is
         reduced to zero;

                  (vii) any remaining related Principal Distribution Amount, to
         the Class V-M-5 Notes until the Note Principal Balance of such Class is
         reduced to zero;

                  (viii) any remaining related Principal Distribution Amount, to
         the Class V-B Notes until the Note Principal Balance of such Class is
         reduced to zero; and

                  (ix) any remainder as part of the related Net Monthly Excess
         Cashflow for the Group V Loans to be allocated as described Section
         3.06(e) below.

         (d) On each Payment Date (a) on or after the related Stepdown Date and
(b) on which a related Trigger Event is not in effect, the Holders of each Class
of Class V-A, Class V-M and Class V-B Notes shall be entitled to receive
payments in respect of principal to the extent of the related Principal
Distribution Amount in the following amounts and order of priority:

                  (i) from the Class V-A Principal Distribution Amount, the
         Class V-A-1 Priority Amount shall be distributed to the Class V-A-1
         Notes until the Note Principal Balance thereof has been reduced to
         zero;

                  (ii) any remaining Class V-A Principal Distribution Amount
         shall be distributed sequentially to the Class V-A-2, Class V-A-3,
         Class V-A-4 and Class V-A-1 Notes, in that order, in each case until
         the Note Principal Balance thereof has been reduced to zero, with any
         amounts payable to the Class V-A-4 Notes payable to the Class V-A-4-A,
         Class V-A-4-B, Class V-A-4-C Notes and Class V-A-4-D Notes, pro rata,
         based on their respective Note Principal Balances;

                  (iii) any remaining related Principal Distribution Amount
         shall be distributed to the Class V-M-1 Notes, in an amount up to the
         Class V-M-1 Principal Distribution Amount, until the Note Principal
         Balance thereof has been reduced to zero;

                  (iv) any remaining related Principal Distribution Amount shall
         be distributed to the Class V-M-2 Notes, in an amount up to the Class
         V-M-2 Principal Distribution Amount, until the Note Principal Balance
         thereof has been reduced to zero;

                  (v) any remaining related Principal Distribution Amount shall
         be distributed to the Class V-M-3 Notes, in an amount up to the Class
         V-M-3 Principal Distribution Amount, until the Note Principal Balance
         thereof has been reduced to zero;

                  (vi) any remaining related Principal Distribution Amount shall
         be distributed to the Class V-M-4 Notes, in an amount up to the Class
         V-M-4 Principal Distribution Amount, until the Note Principal Balance
         thereof has been reduced to zero;

                  (vii) any remaining related Principal Distribution Amount
         shall be distributed to the Class V-M-5 Notes, in an amount up to the
         Class V-M-5 Principal Distribution Amount, until the Note Principal
         Balance thereof has been reduced to zero;

                  (viii) any remaining related Principal Distribution Amount
         shall be distributed to the Class V-B Notes, in an amount up to the
         Class V-B Principal Distribution Amount, until the Note Principal
         Balance thereof has been reduced to zero; and

                  (ix) to any remainder as part of the Net Monthly Excess
         Cashflow for the Group VIII Loans to be allocated as described Section
         3.06(e) below.

         (e) On each Payment Date, any Net Monthly Excess Cashflow for the Group
V Loans shall be paid, in each case to the extent of remaining Net Excess
Monthly Cashflow, as follows:

                  (i) to the Note Insurer, the aggregate of all payments, if
         any, made by the Note Insurer under the Note Insurance Policy with
         respect to the Class V-A-4-D Notes, including interest thereon, to the
         extent not previously paid or reimbursed;

                  (ii) to the Holders of the Class V-A, Class V-M and Class V-B
         Notes in an amount equal to the related Overcollateralization Increase
         Amount, payable to such Holders as part of the related Principal
         Distribution Amount as provided in 3.06(c) and (d) above;

                  (iii) to the holders of the Class V-A-4-B Notes, an amount
         equal to the Allocated Realized Loss Amount for such Notes, to the
         extent not previously reimbursed;

                  (iv) to the Holders of the Class V-M-1 Notes, first, an amount
         equal to any related Unpaid Interest Shortfalls for such Notes, and
         second, an amount equal to any related Allocated Realized Loss Amount
         for such Notes, in each case to the extent not previously reimbursed;

                  (v) to the Holders of the Class V-M-2 Notes, first, an amount
         equal to any related Unpaid Interest Shortfalls for such Notes, and
         second, an amount equal to any related Allocated Realized Loss Amount
         for such Notes, in each case to the extent not previously reimbursed;

                  (vi) to the Holders of the Class V-M-3 Notes, first, an amount
         equal to any related Unpaid Interest Shortfalls for such Notes, and
         second, an amount equal to any related Allocated Realized Loss Amount
         for such Notes, in each case to the extent not previously reimbursed;

                  (vii) to the Holders of the Class V-M-4 Notes, first, an
         amount equal to any related Unpaid Interest Shortfalls for such Notes,
         and second, an amount equal to any related Allocated Realized Loss
         Amount for such Notes, in each case to the extent not previously
         reimbursed;

                  (viii) to the Holders of the Class V-M-5 Notes, first, an
         amount equal to any related Unpaid Interest Shortfalls for such Notes,
         and second, an amount equal to any related Allocated Realized Loss
         Amount for such Notes, in each case to the extent not previously
         reimbursed;

                  (ix) to the Holders of the Class V-B Notes, first, an amount
         equal to any related Unpaid Interest Shortfalls for such Notes, and
         second, an amount equal to any related Allocated Realized Loss Amount
         for such Notes, in each case to the extent not previously reimbursed;

                  (x) to the holders of the Class V-A Notes, on a pro rata
         basis, based on the amount of any related Basis Risk Shortfall
         Carry-Forward Amount or Net WAC Shortfall Carry-Forward Amount for such
         Notes on such Payment Date, any related Basis Risk Shortfall
         Carry-Forward Amount or Net WAC Shortfall Carry-Forward Amount for such
         Notes on such Payment Date, to the extent not covered by the Corridor
         Contract or Excess Derivative Payment Amount and the Cap Contract as
         provided in Section 3.05(g) and 3.06(f) above, respectively;

                  (xi) sequentially to the Holders of the Class V-M Notes, any
         related Basis Risk Shortfall Carry-Forward Amount for such Notes on
         such Payment Date, to the extent not covered by the Corridor Contract
         or Excess Derivative Payment Amount and Cap Contract as provided in
         Section 3.05(g) and 3.06(f) above;

                  (xii) to the Class I-A, Class II-A, Class III-A, Class IV-A,
         Class M and Class B Notes to be included in the related Net Monthly
         Excess Cashflow as provided in Section 3.05(e) above;

                  (xiii) until the Note Principal Balances of the Class N Notes
         have been reduced to zero, to the Holders of the Class N Notes as
         provided in the Section 3.09 below; and

                  (xiv) any remaining amounts will be distributed to the
         Certificate Paying Agent, as designee of the Issuer, for the benefit of
         the Holders of the Trust Certificates, as provided herein and in the
         Trust Agreement.

         Section 3.07 PAYMENT OF PRINCIPAL AND INTEREST ON THE CLASS VI-A NOTES.

         (a) On each Payment Date, the Investor Interest Collections, reduced by
the HELOC Back-Up Servicing Fee, the HELOC Servicing Fee and any unreimbursed
nonrecoverable servicing advances previously made, will be distributed in the
following priority, in accordance with the statement furnished by the Securities
Administrator pursuant to Section 7.05 hereof for such Payment Date:

                  (i) to the Insurer, the Premium Amount;

                  (ii) to the Holders of the Class VI-A Notes, accrued interest
         and unpaid interest, in each case accrued at a rate equal to the
         related Note Interest Rate;

                  (iii) to the Holders of the Class VI-A Notes, as a payment of
         principal, Investor Charge-Off Amounts incurred during the preceding
         Due Period and the Investor Charge-Off Amounts incurred during previous
         periods that were not subsequently funded by Investor Interest
         Collections, overcollateralization or draws under the Insurance Policy;

                  (iv) to the Insurer, as reimbursement for prior draws made
         under the Insurance Policy;

                  (v) to the Holders of the Class VI-A Notes, as a payment of
         principal, the amount necessary to build the overcollateralization to
         the related Overcollateralization Target Amount;

                  (vi) to the Insurer, any other amounts owed to the Insurer
         pursuant to the Insurance Agreement;

                  (vii) to the Holders of the Class VI-A Notes, Basis Risk
         Shortfall Carry-Forward Amounts on the Class VI-A Notes for such
         Payment Date;

                  (viii) to the owner of the Transferor Interest, any remaining
         amounts until the Transferor Interest Principal Balance is reduced to
         zero; and

                  (ix) to the Holder of the Trust Certificates, any remaining
         amounts.

         (b) On each Payment Date, Principal Collections on the HELOC Mortgage
Loans, will be distributed in the following priority:

                  (i) to Holders of the Class VI-A Notes, the lesser of the
         outstanding Note Principal Balance of the Class VI-A Notes and the
         Investor Principal Distribution Amount;

                  (ii) to the Insurer, as reimbursement for prior Draws made
         under the Insurance Policy, to the extent not paid pursuant to Section
         3.07(a) above;

                  (iii) to the owner of the Transferor Interest, any remaining
         amounts until the Transferor Interest Principal Balance is reduced to
         zero; and

                  (iv) to the Holder of the Trust Certificates, any remaining
         amounts.

         Section 3.08 RAPID AMORTIZATION EVENTS.

         A Rapid Amortization Event is any of the following events:

        (a) Investor Interest Collections or Principal Collections for any
Payment Date are not enough to make any payment of interest or principal,
respectively, in each case that is due on the Class VI-A Notes, and such failure
continues for a period of five Business Days;

         (b) a declaration of bankruptcy or insolvency by any of the Trust, the
Depositor or the HELOC Servicer;

         (c) the Trust becomes subject to the Investment Company Act of 1940;

         (d) failure on the part of the Trust, the Depositor, the Seller, the
HELOC Servicer or the HELOC Back-Up Servicer to perform any of its other
material obligations under the HELOC Back-Up Servicing Agreement, the Trust
Agreement, the HELOC Servicing Agreement or the Indenture;

         (e) a draw on the Insurance Policy is unreimbursed for 90 days; or

         (f) the occurrence of a HELOC Servicer Termination Event.

         If any event described in clause (a) or (d) occurs, a Rapid
Amortization Event will occur only if, after the applicable grace period, the
Insurer or the Indenture Trustee acting at the direction of the Noteholders
holding notes evidencing more than 51% in principal amount of the Class VI-A
Notes then outstanding, with the consent of the Insurer, by written notice to
the Holder of the Transferor Interest, the Depositor and the HELOC Servicer (and
to the Indenture Trustee, if given by the Insurer or the Noteholders) declare
that a Rapid Amortization Event has occurred. If any event described in clauses
(b), (c), (e) or (f) occurs, a Rapid Amortization Event will occur without any
notice or other action on the part of the Indenture Trustee, the Insurer or the
Noteholders immediately on the occurrence of such event.

         Notwithstanding the foregoing, if a conservator, receiver or
trustee-in-bankruptcy is appointed for the HELOC Servicer, and no Rapid
Amortization Event exists other than the conservatorship, receivership or
insolvency of the HELOC Servicer, such conservator, receiver or
trustee-in-bankruptcy may have the power to prevent the commencement of a Rapid
Amortization Event.

         Section 3.09 PAYMENTS TO THE CLASS N NOTES.

         (a) On each Payment Date, the amounts payable to the Class N Notes
pursuant to Section 3.05(e)(xii) and 3.06(e)(xi) and any prepayment penalties
collected by the RMBS Servicer pursuant to the RMBS Servicing Agreement, will be
distributed as follows, in accordance with the statement furnished by the
Securities Administrator pursuant to Section 7.05 hereof for such Payment Date:

                  (i) to the Holders of the Class N-1 Notes, the Accrued Note
         Interest for such Class for such Payment Date;

                  (ii) to the Holders of the Class N-2 Notes, the Accrued Note
         Interest for such Class for such Payment Date;

                  (iii) to the Class N Reserve Fund, the Required Reserve Fund
         Deposit for such Payment Date,

                  (iv) sequentially to the Holders of the Class N-1 Notes and
         Class N-2 Notes, in that order, in reduction of the Note Principal
         Balance thereof, in each case until the Note Principal Balance thereof
         has been reduced to zero; and

                  (v) any remaining amounts will be distributed to the
         Certificate Paying Agent, as designee of the Issuer, for the benefit of
         the Holders of the Trust Certificates, as provided herein and in the
         Trust Agreement.

         Section 3.10 OTHER MATTERS WITH RESPECT TO THE NOTES.

         (a) Each distribution with respect to a Book-Entry Note shall be paid
to the Depository, as Holder thereof, and the Depository shall be responsible
for crediting the amount of such distribution to the accounts of its Depository
Participants in accordance with its normal procedures. Each Depository
Participant shall be responsible for disbursing such distribution to the Note
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 Note Owners
that it represents. None of the Indenture Trustee, the Note Registrar, the
Paying Agent, the Depositor, the Securities Administrator, the RMBS Master
Servicer or the related Servicer shall have any responsibility therefor except
as otherwise provided by this Indenture or applicable law.

         (b) On each Payment Date, the Certificate Paying Agent shall deposit in
the Certificate Distribution Account all amounts it received pursuant to
Sections 3.05, 3.06, 3.07 and 3.08 for the purpose of distributing such funds to
the Certificateholders.

         (c) Any installment of interest or principal, if any, payable on any
Note that is punctually paid or duly provided for by the Issuer on the
applicable Payment Date shall, if such Holder shall have so requested at least
five Business Days prior to the related Record Date, be paid to each Holder of
record on the preceding Record Date, by wire transfer to an account specified in
writing by such Holder reasonably satisfactory to the Indenture Trustee as of
the preceding Record Date or in all other cases or if no such instructions have
been delivered to the Indenture Trustee, by check to such Noteholder mailed to
such Holder's address as it appears in the Note Register in the amount required
to be distributed to such Holder on such Payment Date pursuant to such Holder's
Notes; PROVIDED, HOWEVER, that the Indenture Trustee shall not pay to such
Holders any amount required to be withheld from a payment to such Holder by the
Code.

         (d) The principal of each Note shall be due and payable in full on the
Final Scheduled Payment Date for such Note as provided in the forms of Note set
forth in Exhibits A-1, A-2, A-3 and A-4 to this Indenture. All principal
payments on the Notes shall be made to the Noteholders entitled thereto in
accordance with the Percentage Interests represented by such Notes. Upon notice
(such notice to include the Final Scheduled Payment Date) to the Indenture
Trustee by the Issuer, the Indenture Trustee shall notify the Person in whose
name a Note is registered at the close of business on the Record Date preceding
the Final Scheduled Payment Date or other final Payment Date (including any
final Payment Date resulting from any redemption pursuant to Section 8.07
hereof). Such notice shall to the extent practicable be mailed no later than
five Business Days prior to such Final Scheduled Payment Date or other final
Payment Date and shall specify that payment of the principal amount and any
interest due with respect to such Note at the Final Scheduled Payment Date or
other final Payment Date will be payable only upon presentation and surrender of
such Note and shall specify the place where such Note may be presented and
surrendered for such final payment. No interest shall accrue on the Notes on or
after the Final Scheduled Payment Date or any such other final Payment Date.

         Section 3.11 PROTECTION OF TRUST ESTATE.

         (a) The Issuer will from time to time prepare, execute and deliver all
such supplements and amendments hereto and all such financing statements,
continuation statements, instruments of further assurance and other instruments,
and will take such other action necessary or advisable to:

                  (i) maintain or preserve the lien and security interest (and
         the priority thereof) of this Indenture or carry out more effectively
         the purposes hereof;

                  (ii) perfect, publish notice of or protect the validity of any
         Grant made or to be made by this Indenture;

                  (iii) cause the Issuer or related Servicer to enforce any of
         the rights to the Mortgage Loans or the HELOC Mortgage Loans, as
         applicable; or

                  (iv) preserve and defend title to the Trust Estate and the
         rights of the Indenture Trustee, the Insurer and the Noteholders in
         such Trust Estate against the claims of all persons and parties.

         (b) Except as otherwise provided in this Indenture, the Indenture
Trustee shall not remove any portion of the Trust Estate that consists of money
or is evidenced by an instrument, certificate or other writing from the
jurisdiction in which it was held at the date of the most recent Opinion of
Counsel delivered pursuant to Section 3.11 hereof (or from the jurisdiction in
which it was held as described in the Opinion of Counsel delivered on the
Closing Date pursuant to Section 3.11(a) hereof, if no Opinion of Counsel has
yet been delivered pursuant to Section 3.11(b) hereof), unless the Indenture
Trustee shall have first received an Opinion of Counsel to the effect that the
lien and security interest created by this Indenture with respect to such
property will continue to be maintained after giving effect to such action or
actions.

         The Issuer hereby designates the Indenture Trustee its agent and
attorney-in-fact to sign any financing statement, continuation statement or
other instrument required to be signed pursuant to this Section 3.11 upon the
Issuer's preparation thereof and delivery to the Indenture Trustee.

         Section 3.12 OPINIONS AS TO TRUST ESTATE.

         (a) On the Closing Date, the Issuer shall furnish to the Indenture
Trustee, the Insurer, the Note Insurer and the Owner Trustee an Opinion of
Counsel either stating that, in the opinion of such counsel, such action has
been taken with respect to the recording and filing of this Indenture, any
indentures supplemental hereto, and any other requisite documents, and with
respect to the execution and filing of any financing statements and continuation
statements, as are necessary to perfect and make effective the lien and first
priority security interest in the Collateral and reciting the details of such
action, or stating that, in the opinion of such counsel, no such action is
necessary to make such lien and first priority security interest effective.

         (b) On or before April 15 in each calendar year, beginning in 2006, the
Issuer shall furnish to the Note Insurer, the Indenture Trustee and the Insurer
an Opinion of Counsel at the expense of the Issuer either stating that, in the
opinion of such counsel, such action has been taken with respect to the
recording, filing, re-recording and refiling of this Indenture, any indentures
supplemental hereto and any other requisite documents and with respect to the
execution and filing of any financing statements and continuation statements as
is necessary to maintain the lien and first priority security interest in the
Collateral and reciting the details of such action or stating that in the
opinion of such counsel no such action is necessary to maintain such lien and
security interest. Such Opinion of Counsel shall also describe the recording,
filing, re-recording and refiling of this Indenture, any indentures supplemental
hereto and any other requisite documents and the execution and filing of any
financing statements and continuation statements that will, in the opinion of
such counsel, be required to maintain the lien and security interest in the
Collateral until December 31 in the following calendar year.

         Section 3.13 PERFORMANCE OF OBLIGATIONS.

         (a) The Issuer will punctually perform and observe all of its
obligations and agreements contained in this Indenture, the Basic Documents and
in the instruments and agreements included in the Trust Estate.

         (b) The Issuer, with the consent of the Insurer so long as no Insurer
Default exists, may contract with other Persons to assist it in performing its
duties under this Indenture, and any performance of such duties by a Person
identified to the Indenture Trustee in an Officer's Certificate of the Issuer
shall be deemed to be action taken by the Issuer.

         (c) The Issuer will not take any action or permit any action to be
taken by others which would release any Person from any of such Person's
covenants or obligations under any of the documents relating to the Mortgage
Loans and HELOC Mortgage Loans or under any instrument included in the Trust
Estate, or which would result in the amendment, hypothecation, subordination,
termination or discharge of, or impair the validity or effectiveness of, any of
the documents relating to the Mortgage Loans and HELOC Mortgage Loans or any
such instrument, except such actions as the related Servicer is expressly
permitted to take in the related Servicing Agreement. The Indenture Trustee, as
pledgee of the Mortgage Loans and HELOC Mortgage Loans, may, with the consent
of, or at the direction of, the Insurer, so long as no Insurer Default exists,
exercise the rights of the Issuer to direct the actions of the RMBS Servicer
pursuant to the RMBS Servicing Agreement and the HELOC Servicer pursuant to the
HELOC Servicing Agreement.

         Section 3.14 NEGATIVE COVENANTS. So long as any Notes are Outstanding,
the Issuer shall not:

         (a) except as expressly permitted by this Indenture, sell, transfer,
exchange or otherwise dispose of the Trust Estate, unless directed to do so by
the Insurer or the Indenture Trustee, with the consent of the (i) Insurer, so
long as no Insurer Default exists and (ii) Note Insurer, so long as no Note
Insurer Default exists;

         (b) claim any credit on, or make any deduction from the principal or
interest payable in respect of, the Notes (other than amounts properly withheld
from such payments under the Code) or assert any claim against any present or
former Noteholder, by reason of the payment of the taxes levied or assessed upon
any part of the Trust Estate;

         (c) (A) permit the validity or effectiveness of this Indenture to be
impaired, or permit the lien of this Indenture to be amended, hypothecated,
subordinated, terminated or discharged, or permit any Person to be released from
any covenants or obligations with respect to the Notes under this Indenture
except as may be expressly permitted hereby, (B) permit any lien, charge,
excise, claim, security interest, mortgage or other encumbrance (other than the
lien of this Indenture) to be created on or extend to or otherwise arise upon or
burden the Trust Estate or any part thereof or any interest therein or the
proceeds thereof or (C) permit the lien of this Indenture not to constitute a
valid first priority security interest in the Trust Estate; or

         (d) waive or impair, or fail to assert rights under, the Mortgage Loans
and HELOC Mortgage Loans, or impair or cause to be impaired the Issuer's
interest in the Mortgage Loans and HELOC Mortgage Loans, the Mortgage Loan
Purchase Agreement or in any Basic Document, if any such action would materially
and adversely affect the interests of the Noteholders or the Insurer.

         Section 3.15 ANNUAL STATEMENT AS TO COMPLIANCE. The Issuer will deliver
to the Indenture Trustee, the Note Insurer and the Insurer, by March 1 of each
year commencing with the calendar year 2006, an Officer's Certificate stating,
as to the Authorized Officer signing such Officer's Certificate, that:

         (a) a review of the activities of the Issuer during the previous
calendar year and of its performance under this Indenture has been made under
such Authorized Officer's supervision; and

         (b) to the best of such Authorized Officer's knowledge, based on such
review, the Issuer has complied with all conditions and covenants under this
Indenture throughout such year, or, if there has been a default in its
compliance with any such condition or covenant, specifying each such default
known to such Authorized Officer and the nature and status thereof.

         Section 3.16 REPRESENTATIONS AND WARRANTIES CONCERNING THE MORTGAGE
LOANS. The Indenture Trustee, as pledgee of the Mortgage Loans and HELOC
Mortgage Loans, shall have the benefit of the representations and warranties
made by the Seller in (i) the Mortgage Loan Purchase Agreement concerning the
Seller and the Initial Mortgage Loans and Initial HELOCs and (ii) any Group I,
Group II-C, Group II-NC, Group III, Group IV and Group V and Group VI Subsequent
Mortgage Loan Purchase Agreement concerning the Seller and the related Group I,
Group II-C, Group II-NC, Group III, Group IV and Group V Subsequent Mortgage
Loans and Group VI Subsequent HELOC Mortgage Loans to the same extent as though
such representations and warranties were made directly to the Indenture Trustee.
If a Responsible Officer of the Indenture Trustee has actual knowledge of any
breach of any representation or warranty made by the Seller in the Mortgage Loan
Purchase Agreement, or in the applicable Group I, Group II-C, Group II-NC, Group
III, Group IV, Group V Subsequent Mortgage Loan Purchase Agreement or Group VI
Subsequent HELOC Mortgage Loan Purchase Agreement, the Indenture Trustee shall
promptly notify the Seller, the Note Insurer and the Insurer, if applicable, of
such finding and of the Seller's obligation to cure such defect or repurchase or
substitute for the related Mortgage Loan or HELOC Mortgage Loan.

         Section 3.17 AMENDMENTS TO SERVICING AGREEMENT. The Issuer covenants
with the Indenture Trustee and the Insurer that it will not enter into any
amendment or supplement to any Servicing Agreement without the prior written
consent of the Indenture Trustee and the Insurer.

         Section 3.18 SERVICERS AS AGENT AND BAILEE OF THE INDENTURE TRUSTEE.
Solely for purposes of perfection under Section 9-305 of the Uniform Commercial
Code or other similar applicable law, rule or regulation of the state in which
such property is held by the related Servicer, the Issuer and the Indenture
Trustee hereby acknowledge that the related Servicer is acting as bailee of the
Indenture Trustee in holding amounts on deposit in the related Collection
Account and the related Protected Account, as well as its bailee in holding any
Related Documents released to the related Servicer, and any other items
constituting a part of the Trust Estate which from time to time come into the
possession of the related Servicer. It is intended that, by the related
Servicer's acceptance of such bailee arrangement, the Indenture Trustee, as a
secured party of the Mortgage Loans or HELOC Mortgage Loans, as applicable, will
be deemed to have possession of such Related Documents, such monies and such
other items for purposes of Section 9-305 of the Uniform Commercial Code of the
state in which such property is held by the related Servicer. The Indenture
Trustee shall not be liable with respect to such documents, monies or items
while in possession of the related Servicer.

         Section 3.19 INVESTMENT COMPANY ACT. The Issuer shall not become an
"investment company" or be under the "control" of an "investment company" as
such terms are defined in the Investment Company Act of 1940, as amended (or any
successor or amendatory statute), and the rules and regulations thereunder
(taking into account not only the general definition of the term "investment
company" but also any available exceptions to such general definition);
PROVIDED, HOWEVER, that the Issuer shall be in compliance with this Section 3.19
if it shall have obtained an order exempting it from regulation as an
"investment company" so long as it is in compliance with the conditions imposed
in such order.

         Section 3.20 ISSUER MAY CONSOLIDATE, ETC.

         (a) The Issuer shall not consolidate or merge with or into any other
Person, unless the Insurer consents thereto and:

                  (i) the Person (if other than the Issuer) formed by or
         surviving such consolidation or merger shall be a Person organized and
         existing under the laws of the United States of America or any state or
         the District of Columbia and shall expressly assume, by an indenture
         supplemental hereto, executed and delivered to the Indenture Trustee,
         in form reasonably satisfactory to the Indenture Trustee and the
         Insurer, the due and punctual payment of the principal of and interest
         on all Notes, and the payment of the Premium Amount to the Insurer, the
         Note Insurance Policy Premium Amount to the Note Insurer, and all
         amounts payable to the Indenture Trustee, the Derivative Counterparty,
         the Insurer, the Note Insurer, the payment to the Certificate Paying
         Agent of all amounts due to the Certificateholders, and the performance
         or observance of every agreement and covenant of this Indenture on the
         part of the Issuer to be performed or observed, all as provided herein;

                  (ii) immediately after giving effect to such transaction, no
         Default or Event of Default shall have occurred and be continuing;

                  (iii) the Rating Agencies shall have notified the Issuer, the
         Indenture Trustee and the Insurer, with respect to the Class VI-A
         Notes, that such transaction shall not cause the rating of the Notes to
         be reduced, qualified, suspended or withdrawn or to be considered by
         either Rating Agency to be below investment grade without taking into
         account the Insurance Policy;

                  (iv) the Issuer shall have received an Opinion of Counsel (and
         shall have delivered a copy thereof to the Securities Administrator,
         the Indenture Trustee and the Insurer) to the effect that such
         transaction will not (A) result in a "substantial modification" of the
         Notes under Treasury Regulation section 1.1001-3, or adversely affect
         the status of the Notes as indebtedness for federal income tax
         purposes, or (B) if 100% of the Certificates and the Retained Notes (to
         the extent that such Retained Notes have not received a "will be debt"
         opinion) are not owned by American Home Mortgage Acceptance Inc., cause
         the Trust to be subject to an entity level tax for federal income tax
         purposes;

                  (v) any action that is necessary to maintain the lien and
         security interest created by this Indenture shall have been taken;

                  (vi) the Issuer shall have delivered to the Indenture Trustee
         and the Insurer an Officer's Certificate and an Opinion of Counsel each
         stating that such consolidation or merger and such supplemental
         indenture comply with this Article III and that all conditions
         precedent herein provided for or relating to such transaction have been
         complied with (including any filing required by the Exchange Act), and
         that such supplemental indenture is enforceable; and

                  (vii) the Insurer, so long as no Insurer Default exists, shall
         have given its prior consent.

         (b) The Issuer shall not convey or transfer any of its properties or
assets, including those included in the Trust Estate, to any Person, unless:

                  (i) the Person that acquires by conveyance or transfer the
         properties and assets of the Issuer, the conveyance or transfer of
         which is hereby restricted, shall (A) be a United States citizen or a
         Person organized and existing under the laws of the United States of
         America or any state thereof, (B) expressly assume, by an indenture
         supplemental hereto, executed and delivered to the Indenture Trustee
         and the Insurer, in form satisfactory to the Indenture Trustee and, the
         due and punctual payment of the principal of and interest on all Notes
         and the payment of the Premium Amount, Note Insurance Premium Amount
         and all other amounts payable to the Derivative Counterparty, the
         Insurer and the Note Insurer and the performance or observance of every
         agreement and covenant of this Indenture on the part of the Issuer to
         be performed or observed, all as provided herein, (C) expressly agree
         by means of such supplemental indenture that all right, title and
         interest so conveyed or transferred shall be subject and subordinate to
         the rights of the Holders of the Notes and the Insurer, (D) unless
         otherwise provided in such supplemental indenture, expressly agree to
         indemnify, defend and hold harmless the Securities Administrator, the
         Indenture Trustee, the Note Insurer and the Insurer against and from
         any loss, liability or expense arising under or related to this
         Indenture and the Notes and (E) expressly agree by means of such
         supplemental indenture that such Person (or if a group of Persons, then
         one specified Person) shall make all filings with the Commission (and
         any other appropriate Person) required by the Exchange Act in
         connection with the Notes;

                  (ii) immediately after giving effect to such transaction, no
         Default or Event of Default shall have occurred and be continuing;

                  (iii) the Rating Agencies shall have notified the Issuer, the
         Indenture Trustee, the Note Insurer and the Insurer that such
         transaction shall not cause the rating of the Notes to be reduced,
         qualified, suspended or withdrawn (without taking either the Insurance
         Policy or Note Insurance Policy into account);

                  (iv) the Issuer and the Insurer shall have received an Opinion
         of Counsel (and shall have delivered a copy thereof to the Securities
         Administrator, the Indenture Trustee and the Insurer) to the effect
         that such transaction will not (A) result in a "substantial
         modification" of the Notes under Treasury Regulation section 1.1001-3,
         or adversely affect the status of the Notes as indebtedness for federal
         income tax purposes, or (B) if 100% of the Certificates and the
         Retained Notes (to the extent that such Retained Notes have not
         received a "will be debt" opinion) are not owned by American Home
         Mortgage Acceptance Inc., cause the Trust to be subject to an entity
         level tax for federal income tax purposes;

                  (v) any action that is necessary to maintain the lien and
         security interest created by this Indenture shall have been taken;

                  (vi) the Issuer shall have delivered to the Indenture Trustee,
         the Note Insurer and the Insurer an Officer's Certificate and an
         Opinion of Counsel each stating that such conveyance or transfer and
         such supplemental indenture comply with this Article III and that all
         conditions precedent herein provided for relating to such transaction
         have been complied with (including any filing required by the Exchange
         Act); and

                  (vii) the Insurer, so long as no Insurer Default exists, shall
         have given its prior written consent.

         Section 3.21 SUCCESSOR OR TRANSFEREE.

         (a) Upon any consolidation or merger of the Issuer in accordance with
Section 3.20(a), the Person formed by or surviving such consolidation or merger
(if other than the Issuer) shall, following the Issuer's satisfaction of all of
the conditions precedent set forth therein with respect thereto, succeed to, and
be substituted for, and may exercise every right and power of, the Issuer under
this Indenture with the same effect as if such Person had been named as the
Issuer herein.

         (b) Upon a conveyance or transfer of all the assets and properties of
the Issuer pursuant to Section 3.20(b), the Issuer, following its satisfaction
of all of the conditions precedent set forth herein with respect thereto, will
be released from every covenant and agreement of this Indenture to be observed
or performed on the part of the Issuer with respect to the Notes immediately
upon the delivery of written notice to the Indenture Trustee, the Note Insurer
and the Insurer of such conveyance or transfer and approval of such transaction
given by the Insurer and the Note Insurer to the Indenture Trustee.

         Section 3.22 NO OTHER BUSINESS. The Issuer shall not engage in any
business other than as set forth with respect thereto in the Trust Agreement and
other than financing, purchasing, owning and selling and managing the Mortgage
Loans and HELOC Mortgage Loans and the issuance of the Notes and Certificates in
the manner contemplated by this Indenture and the Basic Documents and all
activities incidental thereto.

         Section 3.23 NO BORROWING. The Issuer shall not issue, incur, assume,
guarantee or otherwise become liable, directly or indirectly, for any
indebtedness except for the Notes under this Indenture.

         Section 3.24 GUARANTEES, LOANS, MONTHLY ADVANCES AND OTHER LIABILITIES.
Except as contemplated by this Indenture or the Basic Documents, the Issuer
shall not make any loan or advance or credit to, or guarantee (directly or
indirectly or by an instrument having the effect of assuring another's payment
or performance on any obligation or capability of so doing or otherwise),
endorse or otherwise become contingently liable, directly or indirectly, in
connection with the obligations, stocks or dividends of, or own, purchase,
repurchase or acquire (or agree contingently to do so) any stock, obligations,
assets or securities of, or any other interest in, or make any capital
contribution to, any other Person.

         Section 3.25 CAPITAL EXPENDITURES. The Issuer shall not make any
expenditure (by long-term or operating lease or otherwise) for capital assets
(either realty or personalty).

         Section 3.26 DETERMINATION OF NOTE INTEREST RATE. On each Interest
Determination Date the Securities Administrator shall determine One-Month LIBOR
and Six-Month LIBOR and the related Note Interest Rate for each Class of related
Notes for the following Accrual Period and shall make such information available
pursuant to Section 7.05 hereof to the Indenture Trustee, the Issuer, the
related Servicer, the Insurer and the Depositor. The establishment of One-Month
LIBOR and Six-Month LIBOR on each Interest Determination Date by the Securities
Administrator and the Securities Administrator's calculation of the rate of
interest applicable to each Class of applicable Notes for the related Accrual
Period shall (in the absence of manifest error) be final and binding.

         Section 3.27 RESTRICTED PAYMENTS. The Issuer shall not, directly or
indirectly, (i) pay any dividend or make any distribution (by reduction of
capital or otherwise), whether in cash, property, securities or a combination
thereof, to the Owner Trustee or any owner of a beneficial interest in the
Issuer or otherwise with respect to any ownership or equity interest or security
in or of the Issuer, (ii) redeem, purchase, retire or otherwise acquire for
value any such ownership or equity interest or security or (iii) set aside or
otherwise segregate any amounts for any such purpose; PROVIDED, HOWEVER, that
the Issuer may make, or cause to be made, (x) distributions and payments to the
Securities Administrator, the Owner Trustee, the Indenture Trustee, the
Certificate Registrar, the Certificate Paying Agent, the Noteholders, the
Certificateholders and the Insurer as contemplated by, and to the extent funds
are available for such purpose under this Indenture and the Trust Agreement and
(y) payments to the Servicers, the RMBS Master Servicer and the Subservicers
pursuant to the terms of the related Servicing Agreement, RMBS Master Servicing
Agreement or Subservicing Agreement. The Issuer will not, directly or
indirectly, make payments to or distributions from the Collection Account except
in accordance with this Indenture and the Basic Documents.

         Section 3.28 NOTICE OF EVENTS OF DEFAULT. The Issuer shall give the
Indenture Trustee, the Note Insurer, the Insurer and the Rating Agencies prompt
written notice of each Event of Default hereunder and under the Trust Agreement.

         Section 3.29 FURTHER INSTRUMENTS AND ACTS. Upon request of the
Indenture Trustee, the Note Insurer or the Insurer, the Issuer will execute and
deliver such further instruments and do such further acts as may be reasonably
necessary or proper to carry out more effectively the purpose of this Indenture.

         Section 3.30 STATEMENTS TO NOTEHOLDERS. On each Payment Date, the
Securities Administrator shall make available on the Securities Administrator's
website, WWW.CTSLINK.COM (or deliver at the recipient's option), to the Note
Insurer, the Insurer, each Noteholder and Certificateholder the statement
prepared by the Securities Administrator pursuant to and in the manner provided
for in Section 7.05 hereof.

         Section 3.31 INTEREST COVERAGE ACCOUNTS.

         (a) No later than the Closing Date, the Indenture Trustee shall
establish and maintain seven segregated trust accounts each of which is an
Eligible Account, shall be titled "Group I Interest Coverage Account, Deutsche
Bank National Trust Company, as indenture trustee for the registered holders of
American Home Mortgage Investment Trust Series 2005-2" (the "Group I Interest
Coverage Account"), "Group II-C Interest Coverage Account, Deutsche Bank
National Trust Company, as indenture trustee for the registered holders of
American Home Mortgage Investment Trust Series 2005-2" (the "Group II-C Interest
Coverage Account"), "Group II-NC Interest Coverage Account, Deutsche Bank
National Trust Company, as indenture trustee for the registered holders of
American Home Mortgage Investment Trust Series 2005-2" (the "Group II-NC
Interest Coverage Account"), "Group III Interest Coverage Account, Deutsche Bank
National Trust Company, as indenture trustee for the registered holders of
American Home Mortgage Investment Trust Series 2005-2" (the "Group III Interest
Coverage Account"), "Group IV Interest Coverage Account, Deutsche Bank National
Trust Company, as indenture trustee for the registered holders of American Home
Mortgage Investment Trust Series 2005-2" (the "Group IV Interest Coverage
Account"); "Group V Interest Coverage Account, Deutsche Bank National Trust
Company, as indenture trustee for the registered holders of American Home
Mortgage Investment Trust Series 2005-2" (the "Group V Interest Coverage
Account"); and "Group VI Interest Coverage Account, Deutsche Bank National Trust
Company, as indenture trustee for the registered holders of American Home
Mortgage Investment Trust Series 2005-2" (the "Group VI Interest Coverage
Account"), respectively. The Indenture Trustee shall, promptly upon receipt,
deposit in the related Interest Coverage Account and retain therein the related
Interest Coverage Amount remitted on the Closing Date to the Indenture Trustee
by the Depositor. Funds deposited in the related Interest Coverage Account shall
be held in trust by the Indenture Trustee for the benefit of the related
Noteholders and the Insurer for the uses and purposes set forth herein.

         (b) For federal income tax purposes, the Seller shall be the owner of
the Interest Coverage Accounts and shall report all items of income, deduction,
gain or loss arising therefrom. All income and gain realized from investment of
funds deposited in the related Interest Coverage Account, which investment shall
be made solely upon the written direction of the Seller in Permitted
Investments, shall be for the sole and exclusive benefit of the related Seller
and shall be remitted by the Indenture Trustee to the Seller at the end of the
Funding Period. The Seller shall deposit in the related Interest Coverage
Account the amount of any net loss incurred in respect of any such Permitted
Investment immediately upon realization of such loss.

         (c) On each Payment Date during the Funding Period and on the Payment
Date immediately following the end of the Funding Period, the Indenture Trustee
shall withdraw, in accordance with the statement for such Payment Date provided
by the Securities Administrator pursuant to Section 7.05 hereof, from the Group
I, Group II-C, Group II-NC, Group III, Group IV, Group V and Group VI Interest
Coverage Accounts and deposit in the Payment Account an amount equal to 30 days'
interest on the excess, if any, of the related Group I, Group II-C, Group II-NC,
Group III, Group IV, Group V and Group VI Original Pre-Funded Amount over the
aggregate Principal Balance of related Group I, Group II-C, Group II-NC, Group
III, Group IV and Group V Subsequent Mortgage Loans and Group VI Subsequent
HELOC Mortgage Loans that (in each case) both (i) had a Due Date during the Due
Period relating to such Payment Date and (ii) had a Subsequent Cut-off Date
prior to the first day of the month in which such Payment Date occurs, at a per
annum rate equal to the related weighted average Net Mortgage Rate of the
related Mortgage Loans. In addition, on the first two Payment Dates, amounts
shall be withdrawn from the Group VI Interest Coverage Account in respect to
shortfalls as a result of the HELOC Mortgage Loans with Mortgage Rates that were
supposed to reset in the first Due Period but did not as identified in the
Mortgage Loan Schedule. Such withdrawal and deposit shall be treated as a
contribution of cash by the Seller to the Trust Fund on the date thereof.
Immediately following any such withdrawal and deposit, and immediately following
the conveyance of any Group I, Group II-C, Group II-NC, Group III, Group IV and
Group V Subsequent Mortgage Loans or Group VI Subsequent HELOC Mortgage Loans to
the Trust on any related Subsequent Transfer Date, the Indenture Trustee, in
accordance with the statement for such Payment Date provided by the Securities
Administrator pursuant to Section 7.05 hereof, shall withdraw from the related
Interest Coverage Account and remit to the Seller or its designee an amount
equal to the excess, if any, of the amount remaining in such Interest Coverage
Account over the amount that would be required to be withdrawn therefrom
(assuming sufficient funds therein) pursuant to the preceding sentence on each
subsequent Payment Date, if any, that will occur during the Funding Period or
that will be the Payment Date immediately following the end of the Funding
Period, if no related Group I Group II-C, Group II-NC, Group III, Group IV and
Group V Subsequent Mortgage Loans or Group VI Subsequent HELOC Mortgage Loans
were acquired by the Trust Fund after the end of the Prepayment Period relating
to the current Payment Date.

         (d) Upon the earliest of (i) the Payment Date immediately following the
end of the Funding Period, (ii) the reduction of the Note Principal Balances of
the Notes to zero or (iii) the termination of this Agreement in accordance with
Section 8.04, any amount remaining on deposit in the related Interest Coverage
Account after distributions pursuant to paragraph (c) above shall be withdrawn
by the Indenture Trustee and paid to the Seller or its designee.

         (e) In addition, the Indenture Trustee shall withdraw $30,104.27,
$41,527.06, $50,212.88, $173,189.57, $56,422.97, $165,077.23 and $405,126.04
from the Interest Coverage Account on the first Payment Date to be included in
the related available funds or Interest Collections, as applicable, with respect
to the Group I, Group II-C, Group II-NC, Group III, Group IV, Group V and Group
VI Loans, respectively.

         Section 3.32 THE PRE-FUNDING ACCOUNTS. (a) No later than the Closing
Date, the Indenture Trustee shall establish and maintain six segregated trust
accounts each of which is an Eligible Account, which shall be titled "Group I
Pre-Funding Account, Deutsche Bank National Trust Company, as indenture trustee
for the registered holders of American Home Mortgage Investment Trust Series
2005-2" (the "Group I Pre-Funding Account"); "Group II-C Pre-Funding Account,
Deutsche Bank National Trust Company, as indenture trustee for the registered
holders of American Home Mortgage Investment Trust Series 2005-2" (the "Group
II-C Pre-Funding Account"); "Group II-NC Pre-Funding Account, Deutsche Bank
National Trust Company, as indenture trustee for the registered holders of
American Home Mortgage Investment Trust Series 2005-2" (the "Group II-NC
Pre-Funding Account"); "Group III Pre-Funding Account, Deutsche Bank National
Trust Company, as indenture trustee for the registered holders of American Home
Mortgage Investment Trust Series 2005-2" (the "Group III Pre-Funding Account");
"Group IV Pre-Funding Account, Deutsche Bank National Trust Company, as
indenture trustee for the registered holders of American Home Mortgage
Investment Trust Series 2005-2" (the "Group IV Pre-Funding Account"); "Group V
Pre-Funding Account, Deutsche Bank National Trust Company, as indenture trustee
for the registered holders of American Home Mortgage Investment Trust Series
2005-2" (the "Group V Pre-Funding Account"); and "Group VI Pre-Funding Account,
Deutsche Bank National Trust Company, as indenture trustee for the registered
holders of American Home Mortgage Investment Trust Series 2005-2" (the "Group VI
Pre-Funding Account"), respectively. The Indenture Trustee shall, promptly upon
receipt, deposit in the Group I, Group II-C, Group II-NC, Group III, Group IV,
Group V and Group VI Pre-Funding Accounts and retain therein the Group I, Group
II-C, Group II-NC, Group III, Group IV, Group V and Group VI Original Pre-Funded
Amount, respectively, remitted on the Closing Date to the Indenture Trustee by
the Depositor. Funds deposited in the related Group I, Group II-C, Group II-NC,
Group III, Group IV, Group V and Group VI Pre-Funding Account shall be held in
trust by the Indenture Trustee for the benefit of the related Noteholders, the
Note Insurer, with respect to the Class V-A-4-D Notes, and the Insurer, with
respect to the Class VI-A Notes, for the uses and purposes set forth herein.

         (b) The Indenture Trustee will invest funds deposited in the Group I,
Group II-C, Group II-NC, Group III, Group IV, Group V and Group VI Pre-Funding
Account, as directed by the Seller in writing, in Eligible Investments with a
maturity date (i) no later than the Business Day immediately preceding the date
on which such funds are required to be withdrawn from such account pursuant to
this Indenture, if a Person other than the Indenture Trustee or an Affiliate
manages or advises such investment, (ii) no later than the date on which such
funds are required to be withdrawn from such account pursuant to this Indenture,
if the Indenture Trustee or an Affiliate manages or advises such investment or
(iii) within one (1) Business Day of the Indenture Trustee's receipt thereof.
For federal income tax purposes, the Seller shall be the owner of the Group I,
Group II-C, Group II-NC, Group III, Group IV, Group V and Group VI Pre-Funding
Account and shall report all items of income, deduction, gain or loss arising
therefrom. All income and gain realized from investment of funds deposited in
the related Group I, Group II-C, Group II-NC, Group III, Group IV, Group V and
Group VI Pre-Funding Account shall be included in the related Available Funds at
the following times: (i) on the Business Day immediately preceding each Payment
Date, if a Person other than the Indenture Trustee or an Affiliate of the
Indenture Trustee manages or advises such investment, or on each Payment Date,
if the Indenture Trustee or an Affiliate of the Indenture Trustee manages or
advises such investment, (ii) on the Business Day immediately preceding the
related Subsequent Transfer Date, if a Person other than the Indenture Trustee
or an Affiliate of the Indenture Trustee manages or advises such investment, or
on the related Subsequent Transfer Date, if the Indenture Trustee or an
Affiliate of the Indenture Trustee manages or advises such investment or (iii)
within one (1) Business Day of the Indenture Trustee's receipt thereof. The
Seller shall deposit in the related Group I, Group II-C, Group II-NC, Group III,
Group IV, Group V and Group VI Pre-Funding Account the amount of any net loss
incurred in respect of any such Eligible Investment immediately upon realization
of such loss without any right of reimbursement therefor.

         (c) Amounts on deposit in the Group I, Group II-C, Group II-NC, Group
III, Group IV, Group V and Group VI Pre-Funding Account shall be withdrawn by
the Indenture Trustee as follows:

                  (i) On the related Subsequent Transfer Date, the Indenture
         Trustee shall withdraw from the related Group I, Group II-C, Group
         II-NC, Group III, Group IV, Group V and Group VI Pre-Funding Account an
         amount equal to 100% of the aggregate Stated Principal Balances of the
         related Group I, Group II-C, Group II-NC, Group III, Group IV and Group
         V Subsequent Mortgage Loans and Group VI Subsequent HELOC Mortgage
         Loans transferred and assigned to the Indenture Trustee for deposit in
         the Mortgage Pool on the related Subsequent Transfer Date and pay such
         amount to or upon the order of the Issuer upon satisfaction of the
         conditions set forth in Sections 2.05, 2.06, 2.07, 2.08, 2.09, 2.10 or
         2.11, as applicable, with respect to such transfer and assignment;

                  (ii) If the amount on deposit in the related Group I, Group
         II-C, Group II-NC, Group III, Group IV, Group V or Group VI Pre-Funding
         Account has not been reduced to zero during the Funding Period, on the
         day immediately following the termination of the Funding Period, the
         Indenture Trustee shall deposit into the Payment Account any amounts
         remaining in the related Group I, Group II-C, Group II-NC, Group III,
         Group IV, Group V or Group VI Pre-Funding Account for distribution in
         accordance with the terms hereof;

                  (iii) To withdraw any amount not required to be deposited in
         the related Group I, Group II-C, Group II-NC, Group III, Group IV,
         Group V or Group VI Pre-Funding Account or deposited therein in error;
         and

                  (iv) To clear and terminate the Group I, Group II-C, Group
         II-NC, Group III, Group IV, Group V or Group VI Pre-Funding Account
         upon the earlier to occur of (A) the Payment Date immediately following
         the end of the Funding Period and (B) the termination of this
         Indenture, with any amounts remaining on deposit therein being paid to
         the Holders of the Notes then entitled to distributions in respect of
         principal.

         Section 3.33 GRANT OF THE SUBSEQUENT MORTGAGE LOANS AND SUBSEQUENT
HELOC MORTGAGE LOANS. In consideration of the delivery on the related Subsequent
Transfer Date to or upon the order of the Issuer of all or a portion of the
amount on deposit in the related Group I, Group II-C, Group II-NC, Group III,
Group IV, Group V or Group VI Pre-Funding Account, the Depositor shall, to the
extent of the availability thereof, on the related Subsequent Transfer Date
during the Funding Period, grant to the Indenture Trustee all of its rights,
title and interest in the related Group I, Group II-C, Group II-NC, Group III,
Group IV or Group V Mortgage Loans or Group VI Subsequent HELOC Mortgage Loans
and simultaneously with the Grant of the related Group I, Group II-C, Group
II-NC, Group III, Group IV or Group V Mortgage Loans or Group VI Subsequent
HELOC Mortgage Loans, the Depositor will cause the related Mortgage File to be
delivered to the Indenture Trustee.

         Section 3.34 REPLACEMENT DERIVATIVE CONTRACTS. In the event of an Event
of Default or Termination Event (each, as defined in the related Derivative
Contract) with respect to a Derivative Counterparty under a Derivative Contract
(a "Derivative Contract Default"), the Issuer, at its expense, may, but shall
not be required to, substitute a new derivative contract or any other form of
similar coverage for basis risk shortfalls for such Derivative Contract;
PROVIDED, HOWEVER, that the timing and mechanism for receiving payments under
such new derivative contract shall be reasonably acceptable to the Indenture
Trustee. It shall be a condition to substitution of any new derivative contract
that there be delivered to the Indenture Trustee an Opinion of Counsel to the
effect that such substitution would not (a) result in a "substantial
modification" of the Notes under Treasury Regulation section 1.1001-3, or
adversely affect the status of the Notes as indebtedness for federal income tax
purposes, or (b) if 100% of the Certificates and the Retained Notes (to the
extent that such Retained Notes have not received a "will be debt" opinion) are
not owned by American Home Mortgage Acceptance Inc., cause the Trust to be
subject to entity level tax for federal income tax purposes.

         Section 3.35 PAYMENTS UNDER THE INSURANCE POLICY. (a) (1) By 12:00 noon
(New York Time) on the later of (i) the second Business Day following the
Business Day on which the Insurer shall have received Notice (as defined in the
Insurance Policy) that a Deficiency Amount is due in respect of the Class VI-A
Notes and (ii) the Payment Date on which the related Deficiency Amount is
payable to the Noteholders and (2) at such time as the Indenture Trustee shall
deliver an acceleration notice to the Noteholders pursuant to Section 5.02, the
Securities Administrator on behalf of the Class VI-A Noteholders, shall make a
draw on the Insurance Policy in an amount, if any, equal to the Deficiency
Amount.

         (b) If the Securities Administrator determines that a Deficiency Amount
will exist for the following Payment Date, then the Securities Administrator
shall submit a Notice (as defined in the Insurance Policy) for payment in the
amount of the Deficiency Amount to the Insurer no later than 12:00 Noon, New
York City time, on the second Business Day prior to the applicable Payment Date.
Upon receipt of such Deficiency Amount in accordance with the terms of the
Insurance Policy, the Indenture Trustee shall deposit such Deficiency Amount in
the Payment Account for distribution to the Class VI-A Noteholders pursuant to
Section 3.07 hereof or with respect to an acceleration pursuant to Section 5.02
hereof.

         In addition, according to the terms of the Insurance Policy (in the
form attached hereto as Exhibit E), a draw may be made under the Insurance
Policy in respect of any Preference Amount applicable to any of the Class VI-A
Noteholders (as defined in and pursuant to the terms and conditions of the such
Insurance Policy) and the Securities Administrator shall submit a Notice (as
defined in such Insurance Policy) for payment with respect thereto together with
the other documents required to be delivered to the Insurer pursuant to the
Insurance Policy in connection with a draw in respect of any Preference Amount.

         (c) Upon its receipt of a Final Order (as defined in the Insurance
Policy), the Indenture Trustee shall notify the Securities Administrator when a
draw on the Insurance Policy is required to be made with respect to any
Preference Amount and the Indenture Trustee shall furnish to the Securities
Administrator, at the Issuer's expense, any documents, prepared for and received
by the Indenture Trustee (provided, however, that any such documents shall not
be prepared by the Securities Administrator) required to be delivered under the
Insurance Policy (other than the Notice) for payment with respect to such
Preference Amount. The Indenture Trustee also shall furnish to the Securities
Administrator the wire transfer instructions to be included in any Notice.

         Section 3.36 SUSPENSION OF RIGHTS DURING INSURER DEFAULT. Upon the
occurrence and continuation of an Insurer Default, any right of the Insurer to
take or cause another Person to take any action relating to control or voting
rights, or to give any consent, approval or waiver under this Indenture, shall
be suspended (except as otherwise specifically provided herein) until such time
as such Insurer Default shall have been cured or waived or otherwise ceased to
continue.

         Section 3.37 CERTAIN REPRESENTATIONS REGARDING THE TRUST ESTATE.

         (a) With respect to that portion of the Collateral described in clauses
(a) through (j) of the Granting Clause, the Issuer represents to the Indenture
Trustee that:

                  (i) This Indenture creates a valid and continuing security
         interest (as defined in the applicable UCC) in the Collateral in favor
         of the Indenture Trustee, which security interest is prior to all other
         liens, and is enforceable as such as against creditors of and
         purchasers from the Issuer.

                  (ii) The Collateral constitutes "deposit accounts" or
         "instruments," as applicable, within the meaning of the applicable UCC.

                  (iii) The Issuer owns and has good and marketable title to the
         Collateral, free and clear of any lien, claim or encumbrance of any
         Person.

                  (iv) The Issuer has taken all steps necessary to cause the
         Indenture Trustee to become the account holder of the Collateral.

                  (v) Other than the security interest granted to the Indenture
         Trustee pursuant to this Indenture, the Issuer has not pledged,
         assigned, sold, granted a security interest in, or otherwise conveyed
         any of the Collateral.

                  (vi) The Collateral is not in the name of any Person other
         than the Issuer or the Indenture Trustee. The Issuer has not consented
         to the bank maintaining the Collateral to comply with instructions of
         any Person other than the Indenture Trustee.

         (b) With respect to that portion of the Collateral described in clauses
(i) and (j) of the Granting Clause, the Issuer represents to the Indenture
Trustee that:

                  (i) This Indenture creates a valid and continuing security
         interest (as defined in the applicable UCC) in the Collateral in favor
         of the Indenture Trustee, which security interest is prior to all other
         liens, and is enforceable as such as against creditors of and
         purchasers from the Issuer.

                  (ii) The Collateral constitutes "general intangibles" within
         the meaning of the applicable UCC.

                  (iii) The Issuer owns and has good and marketable title to the
         Collateral, free and clear of any lien, claim or encumbrance of any
         Person.

                  (iv) Other than the security interest granted to the Indenture
         Trustee pursuant to this Indenture, the Issuer has not pledged,
         assigned, sold, granted a security interest in, or otherwise conveyed
         any of the Collateral.

         (c) With respect to any Collateral in which a security interest may be
perfected by filing, the Issuer has not authorized the filing of, and is not
aware of any financing statements against, the Issuer, that include a
description of collateral covering such Collateral, other than any financing
statement relating to the security interest granted to the Indenture Trustee
hereunder or that has been terminated. The Issuer is not aware of any judgment
or tax lien filings against the Issuer.

         (d) The Issuer has caused or will have caused, within ten days of the
Closing Date, the filing of all appropriate financing statements in the proper
filing office in the appropriate jurisdictions under applicable law in order to
perfect the security interest in all Collateral granted to the Indenture Trustee
hereunder in which a security interest may be perfected by filing. Any financing
statement that is filed in connection with this Section 3.37 shall contain a
statement that a purchase or security interest in any collateral described
therein will violate the rights of the secured party named in such financing
statement.

         (e) The foregoing representations may not be waived and shall survive
the issuance of the Notes.

         Section 3.38 ALLOCATION OF REALIZED LOSSES.

         (a) Any Realized Losses on the Group I Loans, Group II Loans, Group III
Loans and Group IV Loans will be allocated or covered on any Payment Date, in
accordance with the statement for such Payment Date provided by the Securities
Administrator pursuant to Section 7.05 hereof, as follows: FIRST, to the related
Net Monthly Excess Cashflow, by an increase in the related Overcollateralization
Increase Amount for that Payment Date as provided in Section 3.05 of this
Indenture; SECOND, in reduction of the Overcollateralized Amount until reduced
to zero (meaning, no losses will be allocated to the Class M Notes and Class B
Notes until the aggregate Note Principal Balance of the Class I-A, Class II-A,
Class III-A, Class IV-A, Class M and Class B Notes equals the aggregate Stated
Principal Balance of the Group I Loans, Group II Loans, Group III Loans and
Group IV Loans; THIRD, to the Class B Notes, in reduction of the Note Principal
Balance thereof, until reduced to zero; FOURTH, Class M-5 Notes, in reduction of
the Note Principal Balance thereof, until reduced to zero; FIFTH, to the Class
M-4 Notes, in reduction of the Note Principal Balance thereof, until reduced to
zero; SIXTH, to the Class M-3 Notes, in reduction of the Note Principal Balance
thereof, until reduced to zero; SEVENTH, to the Class M-2 Notes, in reduction of
the Note Principal Balance thereof, until reduced to zero; EIGHTH, to the Class
M-1 Notes, in reduction of the Note Principal Balance thereof, until reduced to
zero; and NINTH, (i) to the extent such Realized Losses are incurred in respect
of the Group I Loans, to the Class I-A-2 Notes and Class I-A-3 Notes, in that
order, in reduction of the Note Principal Balance thereof and (ii) to the extent
such Realized Losses are incurred in respect of the mortgage loans in Loan Group
IV, to the Class IV-A-3 Notes, to the extent of a fraction of such loss equal to
(x) the aggregate Note Balance of the Class IV-A-2 Notes and Class IV-A-3 Notes
divided by (y) the aggregate Note Principal Balance of all of the Class IV-A
Notes, in reduction of the Note Principal Balance thereof, until reduced to
zero.

         (b) Any Realized Losses on the Mortgage Loans in Loan Group V will be
allocated or covered on any Payment Date, in accordance with the statement for
such Payment Date provided by the Securities Administrator pursuant to Section
7.05 hereof, as follows: FIRST, to the related Net Monthly Excess Cashflow, by
an increase in the related Overcollateralization Increase Amount for that
Payment Date as provided in Section 3.06 of this Indenture; second, in reduction
of the related Overcollateralized Amount, until reduced to zero (meaning, no
losses will be allocated to the Class V-M Notes and Class V-B Notes until the
aggregate Note Principal Balance of Class V-A, Class V-M and Class V-B Notes
equals the aggregate Stated Principal Balance of the Group V Loans); THIRD, to
the Class V-B Notes, in reduction of the Note Principal Balance thereof, until
reduced to zero; FOURTH, to the Class V-M-5 Notes, in reduction of the Note
Principal Balance thereof, until reduced to zero; FIFTH, to the Class V-M-4
Notes, in reduction of the Note Principal Balance thereof, until reduced to
zero; SIXTH, to the Class V-M-3 Notes, in reduction of the Note Principal
Balance thereof, until reduced to zero; SEVENTH, to the Class V-M-2 Notes, in
reduction of the Note Principal Balance thereof, until reduced to zero; EIGHTH,
to the Class V-M-1 Notes, in reduction of the Note Principal Balance thereof,
until reduced to zero; and NINTH, to the Class V-A-4-B Notes, to the extent of a
fraction of such loss equal to (x) the aggregate Note Balance of the Class
V-A-4-A Notes and Class V-A-4-B Notes divided by (y) the aggregate Note
Principal Balance of all of the Class V-A-4 Notes, in reduction of the Note
Principal Balance thereof, until reduced to zero.

         Section 3.39 OBLIGATIONS OF THE SECURITIES ADMINISTRATOR WITH RESPECT
TO THE DERIVATIVE CONTRACTS.

         (a) At least three (3) Business Days prior to each Floating Rate Payer
Payment Date, the Securities Administrator shall make available to the
Calculation Agent, on the Securities Administrator's secure internet website, a
statement containing the amount specified in clause (b) of the definition of
Floating Amount for the related Floating Rate Payer Payment Date.

         (b) For purposes of this Section 3.39, any capitalized terms used but
not otherwise defined herein shall have the meanings assigned to such terms in
the Derivative Contracts.

         Section 3.40 RESERVE FUND. The Indenture Trustee hereby acknowledges
its obligations under Section 6.01 of the RMBS Servicing Agreement and Section
6.01 of the HELOC Servicing Agreement with respect to the Reserve Fund (as
defined in the RMBS Servicing Agreement and HELOC Servicing Agreement) and the
Indenture Trustee agrees to hold such Reserve Fund (as defined in the RMBS
Servicing Agreement and HELOC Servicing Agreement) in trust for the benefit of
the RMBS Master Servicer, the HELOC Back-Up Servicer and the Indenture Trustee
and, upon the RMBS Master Servicer's or the HELOC Back-Up Servicer's request, as
applicable, to promptly pay to the RMBS Master Servicer and the HELOC Back-Up
Servicer any amounts to be reimbursed or paid from the Reserve Fund (as defined
in the RMBS Servicing Agreement and HELOC Servicing Agreement) pursuant to the
RMBS Servicing Agreement and the HELOC Servicing Agreement.

         Amounts on deposit in the Reserve Fund will be invested by the
Indenture Trustee in Eligible Investments at the direction of the Seller, and
investment income thereon will be for the benefit of the Seller. The Indenture
Trustee shall notify the Seller of the amount of any losses incurred with
respect to any such investments. The amount of any such losses shall be
deposited in the Reserve Account by the Seller out of its own funds immediately
as realized. On each Payment Date, the Indenture Trustee will withdraw from the
Reserve Fund any investment income on amounts on deposit in the Reserve Fund and
make payment to the Seller.

         The Trustee or its affiliates are permitted to receive additional
compensation that could be deemed to be in the Trustee's economic self-interest
for (i) serving as investment adviser, administrator, shareholder, servicing
agent, custodian or sub-custodian with respect to certain of the investments,
(ii) using affiliates to effect transactions in certain investments and (iii)
effecting transactions in certain investments. Such compensation is not payable
or reimbursable under this Agreement. The Trustee shall have no obligation to
invest or reinvest any funds held in the Reserve Fund in the absence of timely
written direction and shall not be liable for the selection of investments or
for investment losses incurred thereon.

           On each Payment Date, the Indenture Trustee will withdraw from the
Reserve Fund any investment income on amounts on deposit in the Reserve Fund and
make payment to the Seller in accordance with Section 6.01 of the RMBS Servicing
Agreement and Section 6.01 of the HELOC Servicing Agreement.

Section 3.41 CLASS N RESERVE FUND: On the Closing Date, the Indenture Trustee
will establish the Class N Reserve Fund) for the benefit of the Class N Notes.
On the Closing Date there will be no amounts on deposit in the Class N Reserve
Fund. Amounts on deposit in the Reserve Fund will be invested at the written
direction of the Seller (which may be standing instructions), and investment
income thereon will be retained in the Reserve Fund for distribution as
described below.

           On each Payment Date, to the extent that amounts on deposit in the
Class N Reserve Fund after required payments of interest to the Class N Notes on
such date exceed the Required Reserve Fund Balance for such Payment Date, such
amounts will be deposited into the Payment Account established by the Indenture
Trustee pursuant to the Indenture in accordance with the statement from the
Securities Administrator. On each Payment Date, the Indenture Trustee will (if
necessary) withdraw funds from the Class N Reserve Fund and make payments in the
following order of priority, in accordance with the statement from the
Securities Administrator: FIRST, to the Class N-1 Notes, to the extent of any
unpaid Accrued Note Interest, and SECOND, to the Class N-2 Notes, to the extent
of any unpaid Accrued Note Interest. Any amounts remaining in the Class N
Reserve Fund after the Note Principal Balances of the Class N-1 Notes and Class
N-2 Notes have been reduced to zero shall be paid to the holder of the Owner
Trust Certificates.

<PAGE>

                                   ARTICLE IV

               THE NOTES; SATISFACTION AND DISCHARGE OF INDENTURE

         Section 4.01 THE NOTES. Each Class of Offered Notes shall be registered
in the name of a nominee designated by the Depository. With respect to the
Offered Notes (other than the Class VI-A Notes), Beneficial Owners will hold
interests in such Notes through the book-entry facilities of the Depository in
minimum initial Note Principal Balances of $25,000 and integral multiples of $1
in excess thereof. With respect to the Class VI-A Notes, Class Beneficial Owners
will hold interests in such Notes through the book-entry facilities of the
Depository in minimum initial Note Principal Balances of $25,000 and integral
multiples of $1,000 in excess thereof. The Non-Offered Notes will be issued in
fully registered definitive physical form in minimum dollar denominations of
$25,000 and integral multiples of $1 in excess thereof.

         The Indenture Trustee may for all purposes (including the making of
payments due on the Notes) deal with the Depository as the authorized
representative of the Beneficial Owners with respect to the Offered Notes for
the purposes of exercising the rights of Holders of the Notes hereunder. Except
as provided in the next succeeding paragraph of this Section 4.01, the rights of
Beneficial Owners with respect to the Offered Notes shall be limited to those
established by law and agreements between such Beneficial Owners and the
Depository and Depository Participants. Except as provided in Section 4.08
hereof, Beneficial Owners shall not be entitled to definitive certificates for
the Offered Notes as to which they are the Beneficial Owners. Requests and
directions from, and votes of, the Depository as Holder of the Offered Notes
shall not be deemed inconsistent if they are made with respect to different
Beneficial Owners. The Indenture Trustee may establish a reasonable record date
in connection with solicitations of consents from or voting by Noteholders and
give notice to the Depository of such record date. Without the consent of the
Issuer and the Indenture Trustee, no Offered Note may be transferred by the
Depository except to a successor Depository that agrees to hold such Note for
the account of the Beneficial Owners.

         In the event the Depository Trust Company resigns or is removed as
Depository, the Indenture Trustee with the approval of the Issuer may appoint a
successor Depository. If no successor Depository has been appointed within 30
days of the effective date of the Depository's resignation or removal, each
Beneficial Owner shall be entitled to certificates representing the Offered
Notes it beneficially owns in the manner prescribed in Section 4.08.

         The Notes shall, on original issue, be executed on behalf of the Issuer
by the Owner Trustee, not in its individual capacity but solely as Owner
Trustee, authenticated by the Indenture Trustee and delivered by the Indenture
Trustee to or upon an Issuer Request.

         Section 4.02 REGISTRATION OF AND LIMITATIONS ON TRANSFER AND EXCHANGE
OF NOTES; APPOINTMENT OF NOTE REGISTRAR AND CERTIFICATE REGISTRAR.

         (a) The Issuer shall cause to be kept at the Corporate Trust Office of
the Note Registrar a Note Register in which, subject to such reasonable
regulations as it may prescribe, the Note Registrar shall provide for the
registration of Notes and of transfers and exchanges of Notes as herein
provided.

         Subject to the restrictions and limitations set forth below, upon
surrender for registration of transfer of any Note at the office designated by
the Indenture Trustee, the Issuer shall execute and the Note Registrar shall
authenticate and deliver, in the name of the designated transferee or
transferees, one or more new Notes in authorized initial Note Principal Balances
evidencing the same Class and aggregate Percentage Interests.

         Subject to the foregoing, at the option of the Noteholders, Notes may
be exchanged for other Notes of like tenor and in authorized initial Note
Principal Balances evidencing the same Class and aggregate Percentage Interests
upon surrender of the Notes to be exchanged at the office designated by the Note
Registrar. Whenever any Notes are so surrendered for exchange, the Issuer shall
execute and the Indenture Trustee shall authenticate and deliver the Notes which
the Noteholder making the exchange is entitled to receive. Each Note presented
or surrendered for registration of transfer or exchange shall (if so required by
the Note Registrar) be duly endorsed by, or be accompanied by a written
instrument of transfer in form reasonably satisfactory to the Note Registrar
duly executed by the Holder thereof or his attorney duly authorized in writing
with such signature guaranteed by a commercial bank or trust company located or
having a correspondent located in the city of New York. Notes delivered upon any
such transfer or exchange will evidence the same obligations, and will be
entitled to the same rights and privileges, as the Notes surrendered.

         No service charge shall be made for any registration of transfer or
exchange of Notes, but the Note Registrar shall require payment of a sum
sufficient to cover any tax or governmental charge that may be imposed in
connection with any registration of transfer or exchange of Notes.

         The Issuer hereby appoints the Indenture Trustee as (i) Certificate
Registrar to keep at its Corporate Trust Office a Certificate Register pursuant
to Section 3.09 of the Trust Agreement 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 thereof pursuant to
Section 3.05 of the Trust Agreement and (ii) Note Registrar under this
Indenture. The Indenture Trustee hereby accepts such appointments.

         (b) No Person shall become a Non-Offered Noteholder until it shall
establish its non-foreign status by submitting to the Paying Agent an IRS Form
W-9 and the Certificate of Non-Foreign Status set forth in Exhibit L hereto.

         No transfer, sale, pledge or other disposition of a Non-Offered Note
shall be made unless such transfer, sale, pledge or other disposition is exempt
from the registration requirements of the Securities Act and any applicable
state securities laws or is made in accordance with said Act and laws. In the
event of any such transfer, the Note Registrar or the Depositor shall prior to
such transfer require the transferee to execute (A) either (i) (a) an investment
letter in substantially the form attached hereto as Exhibit K (or in such form
and substance reasonably satisfactory to the Note Registrar and the Depositor)
which investment letter shall not be an expense of the Trust, the Owner Trustee,
the Indenture Trustee, the Securities Administrator, the Note Registrar, the
RMBS Master Servicer, the HELOC Back-Up Servicer, the RMBS Servicer, the HELOC
Back-Up Servicer, the Seller or the Depositor and which investment letter states
that, among other things, such transferee (1) is a "qualified institutional
buyer" as defined under Rule 144A, acting for its own account or the accounts of
other "qualified institutional buyers" as defined under Rule 144A, and (2) is
aware that the proposed transferor intends to rely on the exemption from
registration requirements under the Securities Act of 1933, as amended, provided
by Rule 144A or (ii) (a) a written Opinion of Counsel acceptable to and in form
and substance satisfactory to the Note Registrar and the Depositor that such
transfer may be made pursuant to an exemption, describing the applicable
exemption and the basis therefor, from said Act and laws or is being made
pursuant to said Act and laws, which Opinion of Counsel shall not be an expense
of the Trust, the Owner Trustee, the Indenture Trustee, the Securities
Administrator, the Note Registrar, the RMBS Master Servicer, the HELOC Back-Up
Servicer, the RMBS Servicer, the HELOC Back-Up Servicer, the Seller or the
Depositor and (b) either (1) the transferee executes a representation letter,
substantially in the form of Exhibit M hereto, and the transferor executes a
representation letter, substantially in the form of Exhibit N hereto, each
acceptable to and in form and substance satisfactory to the Note Registrar
certifying the facts surrounding such transfer, which representation letters
shall not be an expense of the Trust, the Owner Trustee, the Indenture Trustee,
the Securities Administrator, the Note Registrar, the RMBS Master Servicer, the
HELOC Back-Up Servicer, the RMBS Servicer, the HELOC Back-Up Servicer, the
Seller or the Depositor or (2) an Opinion of Counsel has been rendered by
nationally recognized tax counsel stating that such Notes will be treated as
debt for federal income tax purposes and (B) the Certificate of Non-Foreign
Status (in substantially the form attached hereto as Exhibit L) acceptable to
and in form and substance reasonably satisfactory to the Note Registrar, which
certificate shall not be an expense of the Trust, the Owner Trustee, the
Indenture Trustee, the Securities Administrator, the Note Registrar, the RMBS
Master Servicer, the HELOC Back-Up Servicer, the RMBS Servicer, the HELOC
Back-Up Servicer, the Seller or the Depositor. The Holder of a Non-Offered Note
desiring to effect such transfer shall, and does hereby agree to, indemnify the
Trust, the Owner Trustee, the Indenture Trustee, the Paying Agent, the Note
Registrar, the RMBS Master Servicer, the HELOC Back-Up Servicer, the RMBS
Servicer, the HELOC Servicer and the Depositor against any liability that may
result if the transfer is not so exempt or is not made in accordance with such
federal and state laws.

         No person shall become a Non-Offered Noteholder, so long as any Notes
are Outstanding, until it shall establish its status as a real estate investment
trust ("REIT") or as a "qualified REIT subsidiary" ("QRS") within the meaning of
Section 856(a) or Section 856(i) of the Code, respectively, by submitting to the
Note Registrar and the Transferee Certificate set forth in Exhibit P hereto.

         No offer, sale, transfer, pledge, hypothecation or other disposition
(including any pledge, sale or transfer under a repurchase transaction or
securities loan) of any Non-Offered Note shall be made to any transferee unless,
prior to such disposition, the proposed transferor delivers to the Note
Registrar (i) an Opinion of Counsel, rendered by a law firm generally recognized
to be qualified to opine concerning the tax aspects of asset securitization, to
the effect that such transfer (including any disposition permitted following any
default under any pledge or repurchase transaction) will not cause the Trust to
be no longer be treated for federal income tax purposes as a "qualified REIT
subsidiary" within the meaning of Section 856(i) of the Code and (ii) a
certificate that stating that any Non-Offered Notes may be transferred by the
related lender under any such related loan agreement or repurchase agreement
upon a default under any such indebtedness, in which case the transferor shall
deliver to the Note Registrar and the Indenture Trustee substantially in the
form attached hereto as Exhibit Q certifying to such effect. Notwithstanding the
foregoing, the provisions of this paragraph shall not apply to the initial
transfer of the Non-Offered Notes to the Depositor.

         No offer, sale, transfer or other disposition (including pledge) of any
Non-Offered Note shall be made to any affiliate of the Depositor or the Issuer,
other than the initial transfer of the Non-Offered Notes to the Depositor.

         With respect to the restriction on transfer of the Notes contained in
this Section 4.02 and in Section 4.15, any transferor providing an Opinion of
Counsel shall (i) deliver such opinion to the appropriate addressees, (ii)
confirm the acceptability of such opinion with the applicable addressees and
(iii) inform the Note Registrar of delivery and confirmation described in clause
(i) and clause (ii).

         Section 4.03 MUTILATED, DESTROYED, LOST OR STOLEN NOTES. If (i) any
mutilated Note is surrendered to the Indenture Trustee, or the Indenture Trustee
receives evidence to its satisfaction of the destruction, loss or theft of any
Note, and (ii) there is delivered to the Indenture Trustee such security or
indemnity as may be required by it to hold the Issuer and the Indenture Trustee
harmless, then, in the absence of notice to the Issuer, the Note Registrar or
the Indenture Trustee that such Note has been acquired by a bona fide purchaser,
and provided that the requirements of Section 8-405 of the UCC are met, the
Issuer shall execute, and upon Issuer Request the Indenture Trustee shall
authenticate and deliver, in exchange for or in lieu of any such mutilated,
destroyed, lost or stolen Note, a replacement Note; PROVIDED, HOWEVER, that if
any such destroyed, lost or stolen Note, but not a mutilated Note, shall have
become or within seven days shall be due and payable, instead of issuing a
replacement Note, the Issuer may pay such destroyed, lost or stolen Note when so
due or payable without surrender thereof. If, after the delivery of such
replacement Note or payment of a destroyed, lost or stolen Note pursuant to the
proviso to the preceding sentence, a bona fide purchaser of the original Note in
lieu of which such replacement Note was issued presents for payment such
original Note, the Issuer and the Indenture Trustee shall be entitled to recover
such replacement Note (or such payment) from the Person to whom it was delivered
or any Person taking such replacement Note from such Person to whom such
replacement Note was delivered or any assignee of such Person, except a bona
fide purchaser, and shall be entitled to recover upon the security or indemnity
provided therefor to the extent of any loss, damage, cost or expense incurred by
the Issuer or the Indenture Trustee in connection therewith.

         Upon the issuance of any replacement Note under this Section 4.03, the
Issuer may require the payment by the Holder of such Note of a sum sufficient to
cover any tax or other governmental charge that may be imposed in relation
thereto and any other reasonable expenses (including the fees and expenses of
the Indenture Trustee) connected therewith.

         Every replacement Note issued pursuant to this Section 4.03 in
replacement of any mutilated, destroyed, lost or stolen Note shall constitute an
original additional contractual obligation of the Issuer, whether or not the
mutilated, destroyed, lost or stolen Note shall be at any time enforceable by
anyone, and shall be entitled to all the benefits of this Indenture equally and
proportionately with any and all other Notes duly issued hereunder.

         The provisions of this Section 4.03 are exclusive and shall preclude
(to the extent lawful) all other rights and remedies with respect to the
replacement or payment of mutilated, destroyed, lost or stolen Notes.

         Section 4.04 PERSONS DEEMED OWNERS. Prior to due presentment for
registration of transfer of any Note, the Issuer, the Indenture Trustee, the
Paying Agent and any agent of the Issuer, the Insurer or the Indenture Trustee
or the Paying Agent may treat the Person in whose name any Note is registered
(as of the day of determination) as the owner of such Note for the purpose of
receiving payments of principal of and interest, if any, on such Note and for
all other purposes whatsoever, whether or not such Note be overdue, and neither
the Issuer, the Insurer, the Indenture Trustee, the Paying Agent nor any agent
of the Issuer, the Insurer or the Indenture Trustee or the Paying Agent shall be
affected by notice to the contrary.

         Section 4.05 CANCELLATION. All Notes surrendered for payment,
registration of transfer, exchange or redemption shall, if surrendered to any
Person other than the Indenture Trustee, be delivered to the Indenture Trustee
and shall be promptly cancelled by the Indenture Trustee. The Issuer may at any
time deliver to the Indenture Trustee for cancellation any Notes previously
authenticated and delivered hereunder which the Issuer may have acquired in any
manner whatsoever, and all Notes so delivered shall be promptly cancelled by the
Indenture Trustee. No Notes shall be authenticated in lieu of or in exchange for
any Notes cancelled as provided in this Section 4.05, except as expressly
permitted by this Indenture. All cancelled Notes may be held or disposed of by
the Indenture Trustee in accordance with its standard retention or disposal
policy as in effect at the time unless the Issuer shall direct by an Issuer
Request that they be destroyed or returned to it; PROVIDED, HOWEVER, that such
Issuer Request is timely and the Notes have not been previously disposed of by
the Indenture Trustee.

         Section 4.06 BOOK-ENTRY NOTES. The Offered Notes, upon original
issuance, will be issued in the form of typewritten Notes representing the
Book-Entry Notes, to be delivered to The Depository Trust Company, the initial
Depository, or its designated custodian, by, or on behalf of, the Issuer. The
Offered Notes shall initially be registered on the Note Register in the name of
Cede & Co., the nominee of the initial Depository, and no Beneficial Owner will
receive a Definitive Note representing such Beneficial Owner's interest in such
Note, except as provided in Section 4.08. With respect to such Notes, unless and
until definitive, fully registered Notes (the "Definitive Notes") have been
issued to Beneficial Owners pursuant to Section 4.08:

                  (i) the provisions of this Section 4.06 shall be in full force
         and effect;

                  (ii) the Note Registrar, the Paying Agent and the Indenture
         Trustee shall be entitled to deal with the Depository for all purposes
         of this Indenture (including the payment of principal of and interest
         on the Notes and the giving of instructions or directions hereunder) as
         the sole Holder of the Notes, and shall have no obligation to the
         Beneficial Owners of the Notes;

                  (iii) to the extent that the provisions of this Section 4.06
         conflict with any other provisions of this Indenture, the provisions of
         this Section 4.06 shall control;

                  (iv) the rights of Beneficial Owners shall be exercised only
         through the Depository and shall be limited to those established by law
         and agreements between such Owners of Notes and the Depository and/or
         the Depository Participants. Unless and until Definitive Notes are
         issued pursuant to Section 4.08, the initial Depository will make
         book-entry transfers among the Depository Participants and receive and
         transmit payments of principal of and interest on the Notes to such
         Depository Participants; and

                  (v) whenever this Indenture requires or permits actions to be
         taken based upon instructions or directions of Holders of Notes
         evidencing a specified percentage of the Note Principal Balances of the
         Notes, the Depository shall be deemed to represent such percentage with
         respect to the Notes only to the extent that it has received
         instructions to such effect from Beneficial Owners and/or Depository
         Participants owning or representing, respectively, such required
         percentage of the beneficial interest in the Notes and has delivered
         such instructions to the Indenture Trustee.

         Section 4.07 NOTICES TO DEPOSITORY. Whenever a notice or other
communication to the Noteholders is required under this Indenture, unless and
until Definitive Notes shall have been issued to Beneficial Owners pursuant to
Section 4.08, the Indenture Trustee shall give all such notices and
communications specified herein to be given to Holders of the Offered Notes to
the Depository, and shall have no obligation to the Beneficial Owners.

         Section 4.08 DEFINITIVE NOTES. If (i) the Depositor advises the
Indenture Trustee or the Note Registrar in writing that the Depository is no
longer willing or able to properly discharge its responsibilities as clearing
agency with respect to the Offered Notes and the Depositor is unable to locate a
qualified successor within 30 days, (ii) the Depositor, at its option (with the
consent of the Indenture Trustee, which consent shall not by unreasonably
withheld), elects to terminate the book-entry system through the Depository or
(iii) after the occurrence of an Event of Default, any Note Owner materially and
adversely affected thereby may, at its option, request and receive a Definitive
Note evidencing such Note Owner's Percentage Interest in the related Class of
Offered Notes. Upon surrender to the Indenture Trustee of the global Offered
Note or definitive typewritten Notes representing the Book-Entry Notes by the
Depository, accompanied by registration instructions, the Note Registrar will
re-issue the Book-Entry Notes as Definitive Notes issued in the respective Note
Principal Balances owned by individual Note Owners. None of the Issuer, the Note
Registrar or the Indenture Trustee 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 Notes, the
Indenture Trustee shall recognize the Holders of the Definitive Notes as
Noteholders.

         Section 4.09 TAX TREATMENT. The Issuer has entered into this Indenture,
and the Notes will be issued with the intention that, for federal, state and
local income, single business and franchise tax purposes, the Notes (other than
the Class I-A-3, Class B, Class V-M-4, Class V-M-5, Class V-B, Class N-1 and
Class N-2 Notes or portions of the Class I-A-2, Class M-4, Class M-5, which at
the time of issuance, American Home Mortgage Investment Corp. or one of its
qualified REIT subsidiaries acquires beneficial ownership thereof) will qualify
as indebtedness. The Issuer and the Indenture Trustee (in accordance with
Section 6.06 hereof), by entering into this Indenture, and each Noteholder, by
its acceptance of its Note (and each Beneficial Owner by its acceptance of an
interest in the applicable Book-Entry Note), agree to treat the Notes for
federal, state and local income, single business and franchise tax purposes as
indebtedness.

         Section 4.10 SATISFACTION AND DISCHARGE OF INDENTURE. This Indenture
shall cease to be of further effect with respect to the Notes except as to (i)
rights of registration of transfer and exchange, (ii) substitution of mutilated,
destroyed, lost or stolen Notes, (iii) rights of Noteholders (and the (x) Note
Insurer, as subrogee of the Class V-A-4-D Noteholders and (y) Insurer, as
subrogee of the Class VI-A Noteholders) to receive payments of principal thereof
and interest thereon, (iv) Sections 3.03, 3.04, 3.06, 3.09, 3.17, 3.19 and 3.20,
(v) the rights and immunities of the Indenture Trustee hereunder (including the
rights of the Indenture Trustee under Section 6.07) and the obligations of the
Indenture Trustee under Section 4.11 and (vi) the rights of Noteholders and the
Insurer as beneficiaries hereof with respect to the property so deposited with
the Indenture Trustee payable to all or any of them, and the Indenture Trustee,
on demand of and at the expense of the Issuer, shall execute proper instruments
acknowledging satisfaction and discharge of this Indenture with respect to the
Notes and shall release and deliver the Collateral to or upon the Issuer
Request, when

         (A) either

                  (1) all Notes theretofore authenticated and delivered (other
than (i) Notes that have been destroyed, lost or stolen and that have been
replaced or paid as provided in Section 4.03 hereof and (ii) Notes for whose
payment money has theretofore been deposited in trust or segregated and held in
trust by the Issuer and thereafter repaid to the Issuer or discharged from such
trust, as provided in Section 3.03) have been delivered to the Indenture Trustee
for cancellation; or

                  (2) all Notes not theretofore delivered to the Indenture
Trustee for cancellation

                           a.       have become due and payable,

                           b.       will become due and payable at the Final
                                    Scheduled Payment Date within one year, or

                           c.       have been called for early redemption and
                                    the Trust has been terminated pursuant to
                                    Section 8.07 hereof,

and the Issuer, in the case of a. or b. above, has irrevocably deposited or
caused to be irrevocably deposited with the Indenture Trustee cash or direct
obligations of or obligations guaranteed by the United States of America (which
will mature prior to the date such amounts are payable), in trust for such
purpose, in an amount sufficient to pay and discharge the entire indebtedness on
such Notes then outstanding not theretofore delivered to the Indenture Trustee
for cancellation when due on the Final Scheduled Payment Date or other final
Payment Date and has delivered to the Indenture Trustee and the Insurer a
verification report with respect to such direct obligations or obligations
guaranteed by the United States of America from a nationally recognized
accounting firm certifying that the amounts deposited with the Indenture Trustee
are sufficient to pay and discharge the entire indebtedness of such Notes, or,
in the case of c. above, the Issuer shall have complied with all requirements of
Section 8.07 hereof,

         (B) the Issuer has paid or caused to be paid all other sums payable
hereunder and under the Insurance Agreement by the Issuer as evidenced by the
written consent of the Insurer; and

         (C) the Issuer has delivered to the Indenture Trustee, the Note Insurer
and the Insurer an Officer's Certificate and an Opinion of Counsel, each meeting
the applicable requirements of Section 10.01 hereof, each stating that all
conditions precedent herein provided for relating to the satisfaction and
discharge of this Indenture have been complied with and, if the Opinion of
Counsel relates to a deposit made in connection with Section 4.10(A)(2)b. above,
such opinion shall further be to the effect that such deposit will constitute an
"in-substance defeasance" within the meaning of Revenue Ruling 85-42, 1985-1
C.B. 36, and in accordance therewith, the Issuer will be the owner of the assets
deposited in trust for federal income tax purposes.

         Section 4.11 APPLICATION OF TRUST MONEY. All monies deposited with the
Indenture Trustee pursuant to Section 4.10 hereof shall be held in trust and
applied by it, in accordance with the provisions of the Notes and this
Indenture, to the payment, either directly or through any Paying Agent or the
Certificate Paying Agent as designee of the Issuer or the Insurer, as the
Indenture Trustee may determine, to the Holders of Securities, of all sums due
and to become due thereon for principal and interest or otherwise; but such
monies need not be segregated from other funds except to the extent required
herein or required by law.

         Section 4.12 SUBROGATION AND COOPERATION. (a) The Issuer and the
Indenture Trustee acknowledge that (i) to the extent the Insurer makes payments
under the Insurance Policy on account of principal of or interest on the Class
VI-A Notes, the Insurer will be fully subrogated to the rights of such Holders
to receive such principal and interest from the Issuer, and (ii) the Insurer
shall be paid such principal and interest but only from the sources and in the
manner provided herein and in the Insurance Agreement for the payment of such
principal and interest.

         The Indenture Trustee shall, so long as it is indemnified to its
satisfaction, cooperate in all respects with any reasonable written request by
the Insurer (unless a Insurer Default exists) for action to preserve or enforce
the Insurer's rights or interest under this Indenture or the Insurance
Agreement, consistent with this Indenture and without limiting the rights of the
Noteholders as otherwise set forth in the Indenture, including, without
limitation, upon the occurrence and continuance of a default under the Insurance
Agreement, a request to take any one or more of the following actions:

                  (i) institute Proceedings for the collection of all amounts
         then payable on the Class VI-A Notes, or under this Indenture in
         respect of the Class VI-A Notes and all amounts payable under the
         Insurance Agreement, enforce any judgment obtained and collect from the
         Issuer monies adjudged due;

                  (ii) sell or cause to be sold the Trust Estate or any portion
         thereof or rights or interest therein, at one or more public or private
         Sales (as defined in Section 5.15 (a) hereof) called and conducted in
         any manner permitted by law;

                  (iii) institute Proceedings from time to time for the complete
         or partial foreclosure of this Indenture; and

                  (iv) exercise any remedies of a secured party under the UCC
         and take any other appropriate action to protect and enforce the rights
         and remedies of the Insurer hereunder;

provided, however, action shall be taken pursuant to this Section 4.12 by the
Indenture Trustee to preserve the Insurer's rights or interest under this
Agreement or the Insurance Agreement only to the extent such action is available
to the Class VI-A Noteholders or the Insurer under other provisions of this
Indenture.

         Notwithstanding any provision of this Indenture to the contrary, so
long as no Insurer Default exists, the Insurer shall at all times be treated as
if it were the exclusive owner of all Class VI-A Notes Outstanding for the
purposes of all approvals, consents, waivers and the institution of any action
and the written direction of all remedies, and the Indenture Trustee shall act
in accordance with the written directions of the Insurer so long as it is
indemnified therefor to its reasonable satisfaction.

         Section 4.13 REPAYMENT OF MONIES HELD BY PAYING AGENT. In connection
with the satisfaction and discharge of this Indenture with respect to the Notes,
all monies then held by any Person other than the Indenture Trustee under the
provisions of this Indenture with respect to such Notes shall, upon demand of
the Issuer, be paid to the Indenture Trustee to be held and applied according to
Sections 3.05, 3.06 and 3.07 and thereupon such Person shall be released from
all further liability with respect to such monies.

         Section 4.14 TEMPORARY NOTES. Pending the preparation of any Definitive
Notes, the Issuer may execute and upon its written direction, the Indenture
Trustee may authenticate and make available for delivery, temporary Notes that
are printed, lithographed, typewritten, photocopied or otherwise produced, in
any denomination, substantially of the tenor of the Definitive Notes in lieu of
which they are issued and with such appropriate insertions, omissions,
substitutions and other variations as the officers executing such Notes may
determine, as evidenced by their execution of such Notes.

         If temporary Notes are issued, the Issuer will cause Definitive Notes
to be prepared without unreasonable delay. After the preparation of the
Definitive Notes, the temporary Notes shall be exchangeable for Definitive Notes
upon surrender of the temporary Notes at the office of the agent of the
Indenture Trustee located at c/o DTC Transfer Agent Services, 55 Water Street,
Jeanette Park Entrance, New York, New York 10041, without charge to the Holder.
Upon surrender for cancellation of any one or more temporary Notes, the Issuer
shall execute and, upon Issuer Request, the Indenture Trustee shall authenticate
and make available for delivery, in exchange therefor, Definitive Notes of
authorized denominations and of like tenor, class and aggregate principal
amount. Until so exchanged, such temporary Notes shall in all respects be
entitled to the same benefits under this Indenture as Definitive Notes.

         Section 4.15 REPRESENTATION REGARDING ERISA. By acquiring an Offered
Note or interest therein, each Holder of such Note or Beneficial Owner of any
such interest will be deemed to represent that either (1) it is not acquiring
such Note with Plan Assets or (2) (A) the acquisition, holding and transfer of
such Note will not give rise to a nonexempt prohibited transaction under Section
406 of ERISA or Section 4975 of the Code and (B) the Offered Notes are rated
investment grade or better and such person believes that the Offered Notes are
properly treated as indebtedness without substantial equity features for
purposes of Department of Labor regulation 29 C.F.R. ss. 2510.3-101 (the "DOL
Regulations"), and agrees to so treat the Notes. Alternatively, regardless of
the rating of the Offered Notes, such person may provide the Indenture Trustee
and the Owner Trustee with an opinion of counsel, which opinion of counsel will
not be at the expense of the Issuer, the Seller, any Underwriter, the Owner
Trustee, the Indenture Trustee, the related Servicer or any successor servicer
which opines that the acquisition, holding and transfer of such Offered Note or
interest therein is permissible under applicable law, will not constitute or
result in a non-exempt prohibited transaction under ERISA or Section 4975 of the
Code and will not subject the Issuer, the Seller, the Depositor, any
Underwriter, the Owner Trustee, the Indenture Trustee, the related Servicers,
the RMBS Master Servicer or the Securities Administrator or any successor
servicer to any obligation in addition to those undertaken in the Indenture.

         No transfer of Non-Offered Notes or any interest therein shall be made
to any Person unless the Depositor, the Owner Trustee, the Indenture Trustee,
the Note Registrar, the HELOC Back-Up Servicer, the HELOC Servicer and the RMBS
Servicer are provided with an Opinion of Counsel which establishes to the
satisfaction of the Note Registrar that the purchase of Non-Offered Notes,
operation of the Trust and management of Trust assets are permissible under
applicable law, will not constitute or result in any prohibited transaction
under ERISA or Section 4975 of the Code and will not subject the Depositor, the
Owner Trustee, the Note Registrar, the Securities Administrator, the RMBS Master
Servicer, the HELOC Back-Up Servicer, the RMBS Servicer, the HELOC Servicer or
the Seller to any obligation or liability (including obligations or liabilities
under ERISA or Section 4975 of the Code) in addition to those undertaken in this
Agreement, which Opinion of Counsel shall not be an expense of the Depositor,
the Owner Trustee, the Indenture Trustee, the Note Registrar, the Securities
Administrator, the RMBS Master Servicer, the HELOC Back-Up Servicer, the RMBS
Servicer, the HELOC Servicer or the Seller. In lieu of such Opinion of Counsel,
a Person acquiring such Non-Offered Notes may provide a certification in the
form of Exhibit O hereto to the Depositor, the Owner Trustee and the Note
Registrar, which the Depositor, the Owner Trustee, the Indenture Trustee, the
Note Registrar, the Securities Administrator, the RMBS Master Servicer, the
HELOC Back-Up Servicer, the RMBS Servicer, the HELOC Servicer and the Seller may
rely upon without further inquiry or investigation. Neither an Opinion of
Counsel nor a certification will be required in connection with the initial
transfer of any such Non-Offered Note by the Depositor to an affiliate of the
Depositor (in which case, the Depositor or any affiliate thereof shall be deemed
to have represented that such affiliate is not a Plan or a Person investing Plan
Assets of any Plan) and the Owner Trustee and the Note Registrar shall be
entitled to conclusively rely upon a representation (which, upon the request of
the Owner Trustee or the Note Registrar, shall be a written representation) from
the Depositor of the status of such transferee as an affiliate of the Depositor.

<PAGE>

                                    ARTICLE V

                              DEFAULT AND REMEDIES

         Section 5.01 EVENTS OF DEFAULT. The Issuer shall deliver to the
Indenture Trustee, the Note Insurer and the Insurer, within five days after
learning of the occurrence of an Event of Default, written notice in the form of
an Officer's Certificate of any event which with the giving of notice and the
lapse of time would become an Event of Default under clause (c) or (d) of the
definition of "Event of Default", its status and what action the Issuer is
taking or proposes to take with respect thereto. The Indenture Trustee shall not
be deemed to have knowledge of any Event of Default unless a Responsible Officer
has actual knowledge thereof or unless written notice of such Event of Default
is received by a Responsible Officer and such notice references the Notes, the
Trust Estate or this Indenture.

         Section 5.02 ACCELERATION OF MATURITY; RESCISSION AND ANNULMENT. If an
Event of Default should occur and be continuing, then and in every such case the
Indenture Trustee (i) with respect to the Notes, other than the Class VI-A
Notes, at the written direction of the Holders of Notes representing not less
than a majority of the aggregate Note Principal Balance of the Notes or (ii)
with respect to the Class VI-A Notes, so long as the Insurer is not in default
under the Insurance Policy, at the written direction of the Insurer or at the
written direction of the Holder of the majority of the aggregate Note Principal
Balance of the Class VI-A Notes with the consent of the Insurer, may declare the
related Notes to be immediately due and payable, by a notice in writing to the
Issuer (and to the Indenture Trustee if such notice is given by Insurer or the
Noteholders), and upon any such declaration the unpaid Note Principal Balance of
the Notes, together with accrued and unpaid interest thereon through the date of
acceleration, shall become immediately due and payable.

         At any time after such declaration of acceleration of maturity with
respect to an Event of Default has been made and before a judgment or decree for
payment of the money due has been obtained by the Indenture Trustee as
hereinafter in this Article V provided, (i) with respect to the Notes, other
than the Class VI-A Notes, the Holders of the Notes representing not less than a
majority of the aggregate Note Principal Balance of each Class of Notes, other
than the Class VI-A Notes, by written notice to the Issuer and the Indenture
Trustee, or (ii) with respect to the Class VI-A Notes, the Insurer, so long as
the Insurer is not in default under the Insurance Policy, or the Holder of the
majority of the aggregate Note Principal Balance of the Class VI-A Notes with
the consent of the Insurer, by written notice to the Issuer and the Indenture
Trustee, may waive the related Event of Default and rescind and annul such
declaration and its consequences if:

         (a) the Issuer has paid or deposited with the Indenture Trustee a sum
sufficient to pay:

                 (A) all payments of principal of and interest on the Notes and
        all other amounts that would then be due hereunder or under the Notes if
        the Event of Default giving rise to such acceleration had not occurred;

                 (B) all sums paid or advanced by the Indenture Trustee
        hereunder and the reasonable compensation, expenses, disbursements and
        advances of the Indenture Trustee and its agents and counsel; and

                 (C) all amounts owed to the Insurer and the Note Insurer; and

                 (D) all amounts owed to the Derivative Counterparty.

         (b) All Events of Default, other than the nonpayment of the principal
of the Notes that has become due solely by such acceleration, have been cured or
waived as provided in Section 5.12.

No such rescission shall affect any subsequent default or impair any right
consequent thereto.

         Section 5.03 COLLECTION OF INDEBTEDNESS AND SUITS FOR ENFORCEMENT BY
INDENTURE TRUSTEE.

         (a) The Issuer covenants that if (i) default is made in the payment of
any interest on any Note when the same becomes due and payable, and such default
continues for a period of five days, or (ii) default is made in the payment of
the principal of or any installment of the principal of any Note when the same
becomes due and payable, the Issuer shall, upon demand of the Indenture Trustee,
(i) with respect to the Notes other than the Class VI-A Notes, at the written
direction of the Holders of a majority of the aggregate Note Principal Balances
of the Notes or (ii) with respect to the Class VI-A Notes, so long as the
Insurer is not in default under the Insurance Policy, at the written direction
of the Insurer or at the written direction of the Holder of the majority of the
aggregate Note Principal Balance of the Class VI-A Notes with the consent of the
Insurer, pay to the Indenture Trustee, for the benefit of the Insurer, with
respect to the Class VI-A Notes, or the Holders of Notes, the whole amount then
due and payable on the related Notes for principal and interest, with interest
at the applicable Note Interest Rate upon the overdue principal, and in addition
thereto such further amount as shall be sufficient to cover the costs and
expenses of collection, including the reasonable compensation, expenses,
disbursements and advances of the Indenture Trustee and its agents and counsel.

         (b) In case the Issuer shall fail forthwith to pay such amounts upon
such demand, the Indenture Trustee, in its own name and as trustee of an express
trust, subject to the provisions of Section 4.12 and Section 10.16 hereof, may
institute a Proceeding for the collection of the sums so due and unpaid, and may
prosecute such Proceeding to judgment or final decree, and may enforce the same
against the Issuer or other obligor upon the Notes and collect in the manner
provided by law out of the property of the Issuer or other obligor upon the
Notes, wherever situated, the monies adjudged or decreed to be payable.

         (c) If an Event of Default occurs and is continuing, the Indenture
Trustee, subject to the provisions of Section 4.12 and Section 10.16 hereof,
may, as more particularly provided in Section 5.04 hereof, in its discretion,
proceed to protect and enforce its rights and the rights of the Insurer and the
Noteholders by such appropriate Proceedings as directed in writing by the
Insurer or the Holders of a majority of the aggregate Note Principal Balances of
each Class of Notes, to protect and enforce any such rights, whether for the
specific enforcement of any covenant or agreement in this Indenture or in aid of
the exercise of any power granted herein, or to enforce any other proper remedy
or legal or equitable right vested in the Indenture Trustee by this Indenture or
by law.

         (d) In case there shall be pending, relative to the Issuer or any other
obligor upon the Notes or any Person having or claiming an ownership interest in
the Trust Estate, Proceedings under Title 11 of the United States Code or any
other applicable federal or state bankruptcy, insolvency or other similar law,
or in case a receiver, assignee or trustee in bankruptcy or reorganization,
liquidator, sequestrator or similar official shall have been appointed for or
taken possession of the Issuer or its property or such other obligor or Person,
or in case of any other comparable judicial Proceedings relative to the Issuer
or other obligor upon the Notes, or to the creditors or property of the Issuer
or such other obligor, the Indenture Trustee, as directed in writing by the
Insurer or the Holders of a majority of the aggregate Note Principal Balances of
each Class of Notes, irrespective of whether the principal of any Notes shall
then be due and payable as therein expressed or by declaration or otherwise and
irrespective of whether the Indenture Trustee shall have made any demand
pursuant to the provisions of this Section, shall be entitled and empowered, by
intervention in such Proceedings or otherwise:

                  (i) to file and prove a claim or claims for the whole amount
         of principal and interest owing and unpaid in respect of the Notes and
         to file such other papers or documents as may be necessary or advisable
         in order to have the claims of the Indenture Trustee (including any
         claim for reasonable compensation to the Indenture Trustee and each
         predecessor Indenture Trustee, and their respective agents, attorneys
         and counsel, and for reimbursement of all expenses and liabilities
         incurred, and all advances made, by the Indenture Trustee and each
         predecessor Indenture Trustee, except as a result of negligence,
         willful misconduct or bad faith) and of the Noteholders allowed in such
         Proceedings;

                  (ii) unless prohibited by applicable law and regulations, to
         vote on behalf of the Holders of Notes in any election of a trustee, a
         standby trustee or Person performing similar functions in any such
         Proceedings;

                  (iii) to collect and receive any monies or other property
         payable or deliverable on any such claims and to distribute all amounts
         received with respect to the claims of the Noteholders and of the
         Indenture Trustee on their behalf, and

                  (iv) to file such proofs of claim and other papers or
         documents as may be necessary or advisable in order to have the claims
         of the Indenture Trustee or the Holders of Notes allowed in any
         judicial proceedings relative to the Issuer, its creditors and its
         property;

and any trustee, receiver, liquidator, custodian or other similar official in
any such Proceeding is hereby authorized by each of such Noteholders to make
payments to the Indenture Trustee, and, in the event that the Indenture Trustee
shall consent to the making of payments directly to such Noteholders, to pay to
the Indenture Trustee such amounts as shall be sufficient to cover reasonable
compensation to the Indenture Trustee, each predecessor Indenture Trustee and
their respective agents, attorneys and counsel, and all other expenses and
liabilities incurred, and all advances made, by the Indenture Trustee and each
predecessor Indenture Trustee and all amounts due to the Note Insurer.

         (e) Nothing herein contained shall be deemed to authorize the Indenture
Trustee to authorize or consent to or vote for or accept or adopt on behalf of
any Noteholder any plan of reorganization, arrangement, adjustment or
composition affecting the Notes or the rights of any Holder thereof or to
authorize the Indenture Trustee to vote in respect of the claim of any
Noteholder in any such proceeding except, as aforesaid, to vote for the election
of a trustee in bankruptcy or similar Person.

         (f) All rights of action and of asserting claims under this Indenture,
or under any of the Notes, may be enforced by the Indenture Trustee without the
possession of any of the Notes or the production thereof in any trial or other
Proceedings relative thereto, and any such action or proceedings instituted by
the Indenture Trustee shall be brought in its own name as trustee of an express
trust, and any recovery of judgment, subject to the payment of the expenses,
disbursements and compensation of the Indenture Trustee, each predecessor
Indenture Trustee and their respective agents and attorneys, shall be for the
ratable benefit of the Holders of the Notes, subject to Section 5.05 hereof.

         (g) In any Proceedings brought by the Indenture Trustee (and also any
Proceedings involving the interpretation of any provision of this Indenture to
which the Indenture Trustee shall be a party), the Indenture Trustee shall be
held to represent all the Holders of the Notes, and it shall not be necessary to
make any Noteholder a party to any such Proceedings.

         (h) When the Indenture Trustee incurs expenses or renders services in
connection with an Event of Default specified in clause (e) of the definition
thereof or any other related Proceedings the expenses (including the reasonable
charges and expenses of its counsel) and the compensation for the services are
intended to constitute expenses of administration under any applicable Federal
or state bankruptcy, insolvency or other similar law.

         Section 5.04 REMEDIES; PRIORITIES.

         (a) If an Event of Default shall have occurred and be continuing and if
an acceleration has been declared and not rescinded pursuant to Section 5.02
hereof, the Indenture Trustee, subject to the provisions of Section 10.16
hereof, may with the consent of the Insurer, and shall, (i) with respect to the
Notes other than the Class VI-A Notes, at the written direction of the Holders
of a majority of the aggregate Note Principal Balances of the Notes, or (ii)
with respect to the Class VI-A Notes, so long as the Insurer is not in default
under the Insurance Policy, at the written direction of the Insurer or the
Holders of the majority of the aggregate Note Principal Balance of the Class
VI-A Notes with the consent of the Insurer, do one or more of the following
(subject to Section 5.05 hereof):

                  (i) institute Proceedings in its own name and as trustee of an
         express trust for the collection of all amounts then payable on the
         Notes or under this Indenture with respect thereto, whether by
         declaration or otherwise, enforce any judgment obtained, and collect
         from the Issuer and any other obligor upon such Notes monies adjudged
         due;

                  (ii) institute Proceedings from time to time for the complete
         or partial foreclosure of this Indenture with respect to the Trust
         Estate;

                  (iii) exercise any remedies of a secured party under the UCC
         and take any other appropriate action to protect and enforce the rights
         and remedies of the Indenture Trustee and the Holders of the Notes; and

                  (iv) sell the Trust Estate or any portion thereof or rights or
         interest therein, at one or more public or private sales called and
         conducted in any manner permitted by law;

PROVIDED, HOWEVER, that the Indenture Trustee may not sell or otherwise
liquidate the Trust Estate following an Event of Default, unless (A) the
Indenture Trustee receives the consent of the Insurer or the holders of 100% of
the aggregate Note Principal Balance of the Notes then outstanding, (B) it is
determined that the proceeds of such sale or liquidation distributable to the
holders of the Notes are sufficient to discharge in full all amounts then due
and unpaid upon such Notes for principal and interest and to reimburse the Note
Insurer for any amounts drawn under the Note Insurance Policy and any other
amounts due to the Note Insurer under the Note Insurance Policy or (C) it is
determined that the mortgage loans and HELOCs will not continue to provide
sufficient funds for the payment of principal of and interest on the applicable
Notes as they would have become due if the Notes had not been declared due and
payable, and the Indenture Trustee, respecting the Class VI-A Notes, receives
the consent of the Insurer or, respecting the Notes other than the Class VI-A
Notes, the holders of 66 2/3% of the aggregate Note Principal Balance of the
Notes then outstanding.. In determining such sufficiency or insufficiency with
respect to clause (B) and (C), the Indenture Trustee may, but need not, obtain
and rely upon an opinion (obtained at the expense of the Trust) of an
Independent investment banking or accounting firm of national reputation as to
the feasibility of such proposed action and as to the sufficiency of the Trust
Estate for such purpose. Notwithstanding the foregoing, so long as an Event of
Master Servicer Termination has not occurred, any Sale of the Trust Estate shall
be made subject to the continued servicing of the Mortgage Loans by the related
Servicer as provided in the related Servicing Agreement.

         (b) If the Indenture Trustee collects any money or property with
respect to the Group I Loans, Group II Loans, Group III Loans or Group IV Loans,
pursuant to this Article V, it shall pay out the money or property in the
following order as determined by the Securities Administrator for each Loan
Group:

                  FIRST: to the Indenture Trustee, the Securities Administrator,
the RMBS Master Servicer and RMBS Servicer for amounts due and not previously
paid under the Basic Documents;

                  SECOND: to the Derivative Counterparty, any amounts due and
unpaid to the Derivative Counterparty under the Derivative Contracts;

                  THIRD: to the related Noteholders (other than the Class N
Noteholders), the amount of interest then due and unpaid on the related Notes
(other than Basis Risk Shortfall Carry-Forward Amounts and Net WAC Shortfall
Carry-Forward Amounts), first, to the related Class A Noteholders, the related
Accrued Note Interest for such Class, plus any related Unpaid Interest
Shortfalls, with any amounts payable to the Class I-A Notes payable to the Class
I-A-1, Class I-A-2 and Class I-A-3 Notes, pro rata, with any amounts payable to
the Class II-A Notes payable to the Class II-A-1, Class II-A-2 and Class II-A-3
Notes, pro rata, and with any amounts payable to the Class IV-A Notes payable to
the Class IV-A-1, Class IV-A-2 and Class IV-A-3 Notes, pro rata, and second, to
the Class M Noteholders and Class B Noteholders, sequentially, according to the
amounts due and payable on such Notes for interest;

                  FOURTH: to the related Noteholders (other than the Class N
Noteholders) the amount of principal then due and unpaid on the related Notes,
and to each such Noteholder (other than the Class N Noteholders), pro rata,
without preference or priority of any kind, until the Note Principal Balance of
each such Class is reduced to zero;

                  FIFTH: to the Class I-A-2, Class I-A-3, Class IV-A-3, Class M
and Class B Notes, in order of payment priority as set forth in Section 3.38,
the amount of any related Allocated Realized Loss Amount not previously paid;

                  SIXTH: to the related Notes, in order of payment priority, the
amount of any related Basis Risk Shortfall Carry-Forward Amounts or Net WAC
Shortfall Carry-Forward Amounts, as applicable, not previously paid; and

                  SEVENTH: to the holders of the Class N Notes, any Accrued Note
Interest for such Notes on such Payment Date;

                  EIGHTH: to the holders of the Class N Notes, pro rata, in
reduction of the Note Principal Balances thereof, until reduced to zero; and

                  NINTH: to the payment of the remainder, if any, to the holders
of the Trust Certificates on behalf of the Issuer.

         (c) If the Indenture Trustee collects any money or property with
respect to the Group V Mortgage Loans pursuant to this Article V, it shall pay
out the money or property in the following order as determined by the Securities
Administrator for each Loan Group, provided, however that any amounts
representing payments from the Note Insurer shall only be used to pay interest
and principal to the Class V-A-4-D Noteholders pursuant to clauses FOURTH and
FIFTH below:

                  FIRST: to the Indenture Trustee, the Securities Administrator,
the RMBS Master Servicer and RMBS Servicer for amounts due and not previously
paid under the Basic Documents;

                  SECOND: to the Derivative Counterparty, any amounts due and
unpaid to the Derivative Counterparty under the Derivative Contracts;

                  THIRD, to the Note Insurer, provided no Note Insurer Default
exists, with respect to any Note Insurance Premium Amount then due to the extent
unpaid;

                  FOURTH: to the related Noteholders (other than the Class N
Noteholders), the amount of interest then due and unpaid on the related Notes
(other than Basis Risk Shortfall Carry-Forward Amounts and Net WAC Shortfall
Carry-Forward Amounts), first, to the related Class V-A Noteholders, the related
Accrued Note Interest for such Class, plus any related Unpaid Interest
Shortfalls, pro rata, and second, to the Class V-M Noteholders and Class V-B
Noteholders, sequentially, according to the amounts due and payable on such
Notes for interest;

                  FIFTH: to the related Noteholders (other than the Class N
Noteholders) the amount of principal then due and unpaid on the related Notes,
and to each Noteholder (other than the Class N Noteholders), pro rata, without
preference or priority of any kind, until the Note Principal Balance of each
such Class is reduced to zero;

                  SIXTH: the payment of all amounts due and owing to the Note
Insurer under the Note Insurance Policy (including any Note Insurance Policy
Premium Amount not paid pursuant to clause THIRD above);

                  SEVENTH: to the Class V-A-4-B, V-M and Class V-B Notes, in
order of payment priority as set forth in Section 3.38, the amount of any
related Allocated Realized Loss Amount not previously paid;

                  EIGHTH: to the related Notes, in order of payment priority,
the amount of any related Basis Risk Shortfall Carry-Forward Amounts or Net WAC
Shortfall Carry-Forward Amounts, as applicable, not previously paid; and

                  NINTH: to the holders of the Class N Notes, any Accrued Note
Interest for such Notes on such Payment Date;

                  TENTH: to the holders of the Class N Notes, pro rata, in
reduction of the Note Principal Balances thereof, until reduced to zero; and

                  ELEVENTH: to the payment of the remainder, if any, to the
holders of the Trust Certificates on behalf of the Issuer.

         (d) If the Indenture Trustee collects any money or property with
respect to the Group VI Loans pursuant to this Article V, it shall pay out the
money or property in the following order as determined by the Securities
Administrator for each Loan Group:

                  FIRST: to the Indenture Trustee, the Securities Administrator,
the HELOC Back-Up Servicer and HELOC Servicer for amounts due and not previously
under the Basic Documents;

                  SECOND: to the Class VI-A Noteholders, accrued interest and
unpaid interest, in each case accrued at the rate equal to the related Note
Interest Rate;

                  THIRD: to the Class VI-A Notes, the amount of principal then
due and unpaid on the Class VI-A Notes pro rata, without preference or priority
of any kind, until the Note Principal Balance of such Class is reduced to zero;

                  FOURTH: to the Insurer, provided that no Insurer Default
exists, with respect to the reimbursement for prior draws made under the
Insurance Policy and the payment of all amounts due and owing to the Insurer
under the Insurance Agreement;

                  FIFTH: to the Class VI-A Noteholders, the amount of any
related Basis Risk Shortfall Carry-Forward Amounts not previously paid; and

                  SIXTH: to the payment of the remainder, if any, to the
holders of the Trust Certificates on behalf of the Issuer.

         The Indenture Trustee may fix a record date and Payment Date for any
payment to Noteholders pursuant to this Section 5.04. With respect to any
acceleration at the direction of the Insurer, the first Payment Date after the
acceleration shall be the first Payment Date after the acceleration. At least 15
days before such record date, the Indenture Trustee shall mail to each
Noteholder a notice that states the record date, the Payment Date and the amount
to be paid.

         Section 5.05 OPTIONAL PRESERVATION OF THE TRUST ESTATE. If the Notes
have been declared to be due and payable under Section 5.02 following an Event
of Default and such declaration and its consequences have not been rescinded and
annulled, the Indenture Trustee may, with the consent of the Insurer (which
consent shall not be required if an Insurer Default exists), and shall, at the
written direction of the Insurer so long as no Insurer Default exists, elect to
take and maintain possession of the Trust Estate. It is the desire of the
parties hereto and the Noteholders that there be at all times sufficient funds
for the payment of principal of and interest on the Notes and other obligations
of the Issuer, including payments to the Note Insurer, the Insurer and the
Indenture Trustee, unless directed otherwise by the Note Insurer or Insurer, as
applicable, shall take such desire into account when determining whether or not
to take and maintain possession of the Trust Estate. In determining whether to
take and maintain possession of the Trust Estate, the Indenture Trustee may, but
need not, obtain and rely upon an opinion of an Independent investment banking
or accounting firm of national reputation as to the feasibility of such proposed
action and as to the sufficiency of the Trust Estate for such purpose.

         Section 5.06 LIMITATION OF SUITS. No Holder of any Note, other than the
Insurer acting pursuant to Section 4.12 hereof, shall have any right to
institute any Proceeding, judicial or otherwise, with respect to this Indenture,
or for the appointment of a receiver or trustee, or for any other remedy
hereunder, unless and subject to the provisions of Section 10.16 hereof:

                  (i) such Holder has previously given written notice to the
         Indenture Trustee of a continuing Event of Default;

                  (ii) the Holders of not less than 25% of the aggregate Note
         Principal Balances of the Notes have made a written request to the
         Indenture Trustee to institute such Proceeding in respect of such Event
         of Default in its own name as Indenture Trustee hereunder;

                  (iii) such Holder or Holders have offered to the Indenture
         Trustee reasonable indemnity against the costs, expenses and
         liabilities to be incurred in complying with such request;

                  (iv) the Indenture Trustee, for 60 days after its receipt of
         such notice of request and offer of indemnity, has failed to institute
         such Proceedings;

                  (v) no direction inconsistent with such written request has
         been given to the Indenture Trustee during such 60-day period by the
         Holders of a majority of the Note Principal Balances of the Notes; and

                  (vi) such Holder or Holders have the written consent of the
         Insurer unless a Insurer Default exists

                  (vii) It is understood and intended that no one or more
         Holders of Notes shall have any right in any manner whatever by virtue
         of, or by availing of, any provision of this Indenture to affect,
         disturb or prejudice the rights of any other Holders of Notes or to
         obtain or to seek to obtain priority or preference over any other
         Holders or to enforce any right under this Indenture, except in the
         manner herein provided.

         Subject to the last paragraph of Section 5.11 herein, in the event the
Indenture Trustee shall receive conflicting or inconsistent requests and
indemnity from two or more groups of Holders of Notes, each representing less
than a majority of the Note Principal Balances of the Notes, the Indenture
Trustee shall take the action requested by the group of Holders representing the
largest percentage of the Note Principal Balance.

         Section 5.07 UNCONDITIONAL RIGHTS OF NOTEHOLDERS TO RECEIVE PRINCIPAL
AND INTEREST. Notwithstanding any other provisions in this Indenture, the Holder
of any Note shall have the right, which is absolute and unconditional, to
receive payment of the principal of and interest, if any, on such Note on or
after the respective due dates thereof expressed in such Note or in this
Indenture and to institute suit for the enforcement of any such payment, and
such right shall not be impaired without the consent of such Holder.

         Section 5.08 RESTORATION OF RIGHTS AND REMEDIES. If the Indenture
Trustee or any Noteholder has instituted any Proceeding to enforce any right or
remedy under this Indenture and such Proceeding has been discontinued or
abandoned for any reason or has been determined adversely to the Indenture
Trustee, the Insurer or to such Noteholder, then and in every such case the
Issuer, the Indenture Trustee, the Insurer and the Noteholders shall, subject to
any determination in such Proceeding, be restored severally and respectively to
their former positions hereunder, and thereafter all rights and remedies of the
Indenture Trustee, the Insurer and the Noteholders shall continue as though no
such Proceeding had been instituted.

         Section 5.09 RIGHTS AND REMEDIES CUMULATIVE. No right or remedy herein
conferred upon or reserved to the Indenture Trustee, the Insurer or to the
Noteholders is intended to be exclusive of any other right or remedy, and every
right and remedy shall, to the extent permitted by law, be cumulative and in
addition to every other right and remedy given hereunder or now or hereafter
existing at law or in equity or otherwise. The assertion or employment of any
right or remedy hereunder, or otherwise, shall not prevent the concurrent
assertion or employment of any other appropriate right or remedy.

         Section 5.10 DELAY OR OMISSION NOT A WAIVER. No delay or omission of
the Indenture Trustee, the Insurer or any Holder of any Note to exercise any
right or remedy accruing upon any Event of Default shall impair any such right
or remedy or constitute a waiver of any such Event of Default or an acquiescence
therein. Every right and remedy given by this Article V or by law to the
Indenture Trustee, the Insurer or to the Noteholders may be exercised from time
to time, and as often as may be deemed expedient, by the Indenture Trustee, the
Insurer or by the Noteholders, as the case may be.

         Section 5.11 CONTROL BY NOTEHOLDERS. (i) With respect to the Notes
other than the Class VI-A Notes, the Holders of a majority of the aggregate Note
Principal Balances of Notes or (ii) with respect to the Class VI-A Notes, the
Insurer, so long as the Insurer is not in default under the Insurance Policy, or
the holders of the majority of the aggregate Note Principal Balance of the Class
VI-A Notes with the consent of the Insurer, shall have the right to direct the
time, method and place of conducting any Proceeding for any remedy available to
the Indenture Trustee with respect to the related Notes or exercising any trust
or power conferred on the Indenture Trustee; provided that:

         (a) such direction shall not be in conflict with any rule of law or
with this Indenture;

         (b) any direction to the Indenture Trustee to sell or liquidate the
Trust Estate shall be by Holders of Notes representing not less than 100% of the
Note Principal Balances of the Notes; and

         (c) the Indenture Trustee may take any other action deemed proper by
the Indenture Trustee that is not inconsistent with such direction of the
Holders of Notes representing a majority of the Note Principal Balances of the
Notes.

Notwithstanding the rights of Noteholders set forth in this Section 5.11 the
Indenture Trustee need not take any action that it determines might involve it
in liability.

         Section 5.12 WAIVER OF PAST DEFAULTS. Prior to the declaration of the
acceleration of the maturity of the Notes as provided in Section 5.02 hereof,
(i) with respect to the Notes other than Class VI-A Notes, the Holders of Notes
representing not less than a majority of the aggregate Note Principal Balance of
each Class of Notes or (ii) with respect to the Class VI-A Notes, so long as the
Insurer is not in default under the Insurance Policy, the Insurer or the Holder
of the majority of the aggregate Note Principal Balance of the Class VI-A Notes
with the consent of the Insurer may waive any past Event of Default and its
consequences except an Event of Default (a) with respect to payment of principal
of or interest on any of the Notes, or (b) in respect of a covenant or provision
hereof which cannot be modified or amended without the consent of the Holder of
each Note or (c) the waiver of which would materially and adversely affect the
interests of the Insurer or the Note Insurer or modify their obligations under
the Insurance Policy and Note Insurance Policy, respectively. In the case of any
such waiver, the Issuer, the Indenture Trustee and the Holders of the Notes
shall be restored to their former positions and rights hereunder, respectively,
but no such waiver shall extend to any subsequent or other Event of Default or
impair any right consequent thereto.

         Upon any such waiver, any Event of Default arising therefrom shall be
deemed to have been cured and not to have occurred for every purpose of this
Indenture; but no such waiver shall extend to any subsequent or other Event of
Default or impair any right consequent thereto.

         Section 5.13 UNDERTAKING FOR COSTS. All parties to this Indenture
agree, and each Holder of any Note and each Beneficial Owner of any interest
therein by such Holder's or Beneficial Owner's acceptance thereof shall be
deemed to have agreed, that any court may in its discretion require, in any suit
for the enforcement of any right or remedy under this Indenture, or in any suit
against the Indenture Trustee for any action taken, suffered or omitted by it as
Indenture Trustee, the filing by any party litigant in such suit of an
undertaking to pay the costs of such suit, and that such court may in its
discretion assess reasonable costs, including reasonable attorneys' fees,
against any party litigant in such suit, having due regard to the merits and
good faith of the claims or defenses made by such party litigant; but the
provisions of this Section 5.13 shall not apply to (a) any suit instituted by
the Indenture Trustee, (b) any suit instituted by any Noteholder, or group of
Noteholders, in each case holding in the aggregate more than 10% of the Note
Principal Balances of the Notes or (c) any suit instituted by any Noteholder for
the enforcement of the payment of principal of or interest on any Note on or
after the respective due dates expressed in such Note and in this Indenture.

         Section 5.14 WAIVER OF STAY OR EXTENSION LAWS. The Issuer covenants (to
the extent that it may lawfully do so) that it will not at any time insist upon,
or plead or in any manner whatsoever, claim or take the benefit or advantage of,
any stay or extension law wherever enacted, now or at any time hereafter in
force, that may affect the covenants or the performance of this Indenture; and
the Issuer (to the extent that it may lawfully do so) hereby expressly waives
all benefit or advantage of any such law, and covenants that it shall not
hinder, delay or impede the execution of any power herein granted to the
Indenture Trustee, but will suffer and permit the execution of every such power
as though no such law had been enacted.

         Section 5.15 SALE OF TRUST ESTATE.

         (a) The power to effect any sale or other disposition (a "Sale") of any
portion of the Trust Estate pursuant to Section 5.04 hereof is expressly subject
to the provisions of Sections 5.05 and 5.11(b) hereof and this Section 5.15. The
power to effect any such Sale shall not be exhausted by any one or more Sales as
to any portion of the Trust Estate remaining unsold, but shall continue
unimpaired until the entire Trust Estate shall have been sold or all amounts
payable on the Notes and under this Indenture, the Insurance Policy and the Note
Insurance Policy shall have been paid. The Indenture Trustee may from time to
time postpone any public Sale by public announcement made at the time and place
of such Sale. The Indenture Trustee, with the consent of the Insurer (which
consent shall not be required if a Insurer Default exists), hereby expressly
waives its right to any amount fixed by law as compensation for any Sale.

         (b) The Indenture Trustee shall not in any private Sale sell the Trust
Estate, or any portion thereof, unless

         (1) the Insurer, unless an Insurer Default exists, or the Holders of
all Notes, if no Insurer Default exists, consent to or direct the Indenture
Trustee to make, such Sale, or

         (2) the proceeds of such Sale would be not less than the entire amount
which would be payable to the Noteholders under the Notes, the Insurer in
respect to amounts drawn under the Insurance Policy and any other amounts due to
the Insurer under the Insurance Agreement and the Note Insurer under the Note
Insurance Policy, in full payment thereof in accordance with Section 5.02
hereof, on the Payment Date next succeeding the date of such Sale, or

         (3) the Indenture Trustee determines that the conditions for retention
of the Trust Estate set forth in Section 5.05 hereof cannot be satisfied (in
making any such determination, the Indenture Trustee may rely upon an opinion of
an Independent investment banking firm obtained and delivered as provided in
Section 5.05 hereof), and the Insurer consents to such Sale, or if a Insurer
Default exits, the Holders of Notes representing at least 100% of the Note
Principal Balances of the Notes consent to such Sale.

The purchase by the Indenture Trustee of all or any portion of the Trust Estate
at a private Sale shall not be deemed a Sale or other disposition thereof for
purposes of this Section 5.15(b).

         (c) [reserved]

         (d) In connection with a Sale of all or any portion of the Trust
Estate,

         (1) any Holder or Holders of Notes may bid for and purchase the
property offered for sale, and upon compliance with the terms of sale may hold,
retain and possess and dispose of such property, without further accountability,
and may, in paying the purchase money therefor, deliver any Notes or claims for
interest thereon in lieu of cash up to the amount which shall, upon distribution
of the net proceeds of such sale, be payable thereon, and such Notes, in case
the amounts so payable thereon shall be less than the amount due thereon, shall
be returned to the Holders thereof after being appropriately stamped to show
such partial payment;

         (2) the Indenture Trustee, with the consent of the Insurer so long as
no Insurer Default exists may, but is in no event obligated to, bid for and
acquire the property offered for Sale in connection with any Sale thereof, and,
subject to any requirements of, and to the extent permitted by, applicable law
in connection therewith, may purchase all or any portion of the Trust Estate in
a private sale, and, in lieu of paying cash therefor, may make settlement for
the purchase price by crediting the gross Sale price against the sum of (A) the
amount which would be distributable to the Holders of the Notes and Holders of
Certificates and amounts distributable to the Insurer and Note Insurer as a
result of such Sale in accordance with Section 5.04(b) hereof on the Payment
Date next succeeding the date of such Sale and (B) the expenses of the Sale and
of any Proceedings in connection therewith which are reimbursable to it, without
being required to produce the Notes in order to complete any such Sale or in
order for the net Sale price to be credited against such Notes, and any property
so acquired by the Indenture Trustee shall be held and dealt with by it in
accordance with the provisions of this Indenture;

         (3) the Indenture Trustee shall execute and deliver an appropriate
instrument of conveyance, prepared by the Issuer and satisfactory to the
Indenture Trustee, transferring its interest in any portion of the Trust Estate
in connection with a Sale thereof;

         (4) the Indenture Trustee is hereby irrevocably appointed the agent and
attorney-in-fact of the Issuer to transfer and convey its interest in any
portion of the Trust Estate in connection with a Sale thereof, and to take all
action necessary to effect such Sale; and

         (5) no purchaser or transferee at such a Sale shall be bound to
ascertain the Indenture Trustee's authority, inquire into the satisfaction of
any conditions precedent or see to the application of any monies.

         Section 5.16 ACTION ON NOTES. The Indenture Trustee's right to seek and
recover judgment on the Notes or under this Indenture shall not be affected by
the seeking, obtaining or application of any other relief under or with respect
to this Indenture. Neither the lien of this Indenture nor any rights or remedies
of the Indenture Trustee or the Noteholders shall be impaired by the recovery of
any judgment by the Indenture Trustee against the Issuer or by the levy of any
execution under such judgment upon any portion of the Trust Estate or upon any
of the assets of the Issuer. Any money or property collected by the Indenture
Trustee shall be applied in accordance with Section 5.04(b) hereof.

         Section 5.17 PERFORMANCE AND ENFORCEMENT OF CERTAIN OBLIGATIONS.

         (a) Promptly following a request from the Indenture Trustee to do so,
the Issuer in its capacity as holder of the Mortgage Loans and HELOC Mortgage
Loans, shall take all such lawful action as the Indenture Trustee, the Note
Insurer or the Insurer may request to cause the Issuer to compel or secure the
performance and observance by the Seller and the related Servicer, as
applicable, of each of their obligations to the Issuer under or in connection
with the Mortgage Loan Purchase Agreement, any Group I, Group II-C, Group II-NC,
Group III, Group IV, Group V and Group VI Subsequent Mortgage Purchase
Agreement, the Servicing Agreements, and to exercise any and all rights,
remedies, powers and privileges lawfully available to the Issuer under or in
connection with the Mortgage Loan Purchase Agreement, any Group I, Group II-C,
Group II-NC, Group III, Group IV, Group V and Group VI Subsequent Mortgage
Purchase Agreement, the Servicing Agreements to the extent and in the manner
directed by the Indenture Trustee, as pledgee of the Mortgage Loans, including
the transmission of notices of default on the part of the Seller or the related
Servicer thereunder and the institution of legal or administrative actions or
proceedings to compel or secure performance by the Seller or the related
Servicer of each of their obligations under the Mortgage Loan Purchase
Agreement, any Group I, Group II-C, Group II-NC, Group III, Group IV, Group V
and Group VI Subsequent HELOC Mortgage Loan Purchase Agreement and the Servicing
Agreements, as applicable.

         (b) The Indenture Trustee, as pledgee of the Mortgage Loans, subject to
the rights of the (i) Insurer under this Agreement and the HELOC Servicing
Agreement and (ii) Note Insurer under this Agreement and the RMBS Servicing
Agreement, may, and at the direction (which direction shall be in writing) of
the Insurer of if a Insurer Default exists, of the Holders of 66-2/3% of the
Note Principal Balances of the Notes, shall exercise all rights, remedies,
powers, privileges and claims of the Issuer against the Seller or the related
Servicer under or in connection with the Mortgage Loan Purchase Agreement, any
Group I, Group II-C, Group II-NC, Group III, Group IV, Group V and Group VI
Subsequent HELOC Mortgage Loan Purchase Agreement and the Servicing Agreements,
including the right or power to take any action to compel or secure performance
or observance by the Seller or the related Servicer, as the case may be, of each
of their obligations to the Issuer thereunder and to give any consent, request,
notice, direction, approval, extension or waiver under the Mortgage Loan
Purchase Agreement, any Group I, Group II-C, Group II-NC, Group III, Group IV,
Group V and Group VI Subsequent HELOC Mortgage Loan Purchase Agreement and the
Servicing Agreements, as the case may be, and any right of the Issuer to take
such action shall not be suspended.

                                   ARTICLE VI

             THE INDENTURE TRUSTEE AND THE SECURITIES ADMINISTRATOR

         Section 6.01 DUTIES OF INDENTURE TRUSTEE AND SECURITIES ADMINISTARTOR.

         (a) If an Event of Default has occurred and is continuing, the
Indenture Trustee shall exercise the rights and powers vested in it by this
Indenture and use the same degree of care and skill in their exercise as a
prudent Person would exercise or use under the circumstances in the conduct of
such Person's own affairs.

         (b) Except during the continuance of an Event of Default:

                  (i) the Indenture Trustee and the Securities Administrator
         undertakes to perform such duties and only such duties as are
         specifically set forth in this Indenture and no implied covenants or
         obligations shall be read into this Indenture against the Indenture
         Trustee or the Securities Administrator; and

                  (ii) in the absence of bad faith on its part, the Indenture
         Trustee and the Securities Administrator may each conclusively rely, as
         to the truth of the statements and the correctness of the opinions
         expressed therein, upon certificates, reports, documents, Issuer
         Requests or other instruments or opinions furnished to each of the
         Indenture Trustee and the Securities Administrator and conforming to
         the requirements of this Indenture; however, the Indenture Trustee and
         the Securities Administrator shall examine the certificates, reports,
         documents, Issuer Requests or other instruments and opinions to
         determine whether or not they conform to the requirements of this
         Indenture (but need not confirm or investigate the accuracy of
         mathematical calculations or other facts stated therein).

         (c) The Indenture Trustee and the Securities Administrator may not be
relieved from liability for its own negligent action, its own negligent failure
to act or its own willful misconduct, except that:

                  (i) this paragraph does not limit the effect of paragraph (b)
         of this Section 6.01;

                  (ii) neither the Indenture Trustee nor the Securities
         Administrator shall be liable for any error of judgment made in good
         faith by a Responsible Officer unless it is proved that the Indenture
         Trustee was negligent in ascertaining the pertinent facts;

                  (iii) neither the Indenture Trustee nor the Securities
         Administrator shall be liable with respect to any action it takes or
         omits to take in good faith in accordance with a written direction
         received by it from Noteholders, the Certificateholders, the Insurer or
         the Issuer, which they are entitled to give under the Basic Documents;

                  (iv) neither the Indenture Trustee nor the Securities
         Administrator shall be liable for interest or income on any money
         received by it, except, in the case of the Securities Administrator, as
         set forth in the Basic Documents;

                  (v) money held in trust by the Indenture Trustee or the
         Securities Administrator need not be segregated from other trust funds
         except to the extent required by law or the terms of this Indenture or
         the Trust Agreement;

                  (vi) no provision of this Indenture or other Basic Document
         shall require the Indenture Trustee or the Securities Administrator to
         expend or risk its own funds or otherwise incur financial liability in
         the performance of any of its duties hereunder or in the exercise of
         any of its rights or powers, if it shall have reasonable grounds to
         believe that repayment of such funds or indemnity satisfactory to it
         against such risk or liability is not reasonably assured to it;

                  (vii) every provision of this Indenture or other Basic
         Document relating to the conduct or affecting the liability of or
         affording protection to the Indenture Trustee shall be subject to the
         provisions of this Section and to the provisions of the TIA;

                  (viii) the Indenture Trustee shall execute and act in
         accordance with each Servicing Agreement and the RMBS Master Servicing
         Agreement; in no event however, shall the Indenture Trustee or the
         Securities Administrator have any liability for any act or omission of
         the RMBS Master Servicer, the HELOC Servicer, the RMBS Servicer, any
         Subservicer or the Owner Trustee; and

                  (ix) the Indenture Trustee shall not be deemed to have notice
         or knowledge of any Default or Event of Default, any Servicer Default,
         Insurer Default or other event unless a Responsible Officer of the
         Indenture Trustee has actual knowledge thereof or unless written notice
         of any such event that is in fact an Event of Default, Default,
         Servicer Default, Insurer Default or other event is received by the
         Indenture Trustee at its Corporate Trust Office and such notice
         references the Notes or Certificates generally, the Issuer, the Trust
         Estate or this Indenture.

         Section 6.02 RIGHTS OF INDENTURE TRUSTEE AND THE SECURITIES
ADMINISTRATOR.

         (a) The Indenture Trustee and the Securities Administrator may rely
conclusively on and shall be protected in acting or refraining from acting upon
any resolution, certificate, statement, instrument, opinion, report, notice,
request, direction, consent, order, bond, debenture, note, other evidence of
indebtedness or other paper or document believed by it to be genuine and to have
been signed or presented by the proper Person, party or parties. The Indenture
Trustee and the Securities Administrator need not investigate any fact or matter
stated in any such document.

         (b) Before the Indenture Trustee or the Securities Administrator acts
or refrains from acting, it may require an Officer's Certificate or an Opinion
of Counsel. Neither the Indenture Trustee nor the Securities Administrator shall
be liable for any action it takes or omits to take in good faith in reliance on
and in accordance with an Officer's Certificate or Opinion of Counsel.

         (c) Subject to the provisions of Section 6.01(c), neither the Indenture
Trustee nor the Securities Administrator shall be liable for any action it takes
or omits to take in good faith which it believes to be authorized or within its
rights or powers.

         (d) The Indenture Trustee and the Securities Administrator may each
consult with counsel of its selection, and the written advice or Opinion of
Counsel with respect to legal matters relating to this Indenture and the Notes
or any Basic Document shall be full and complete authorization and protection
from liability in respect to any action taken, omitted or suffered by it
hereunder in good faith and in accordance with the written advice or Opinion of
such counsel.

         (e) For the limited purpose of effecting any action to be undertaken by
each of the Indenture Trustee and the Securities Administrator, but not
specifically as a duty of the Indenture Trustee or the Securities Administrator
in the Indenture, each of the Indenture 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, attorneys, custodians or
nominees appointed with due care, and shall not be responsible for any willful
misconduct or negligence on the part of any agent, attorney, custodian or
nominee so appointed.

         (f) The Indenture Trustee or its Affiliates are permitted to receive
additional compensation that could be deemed to be in the Indenture Trustee's
economic self-interest for (i) serving as investment adviser, administrator,
shareholder servicing agent, custodian or sub-custodian with respect to certain
of the Eligible Investments, (ii) using Affiliates to effect transactions in
certain Eligible Investments and (iii) effecting transactions in certain
Eligible Investments. Such compensation shall not be considered an amount, or
effect a reduction in any amount, that is reimbursable or payable to the
Indenture Trustee (i) as part of the Indenture Trustee Fee, (ii) pursuant to
Sections 5.04(b), 6.07, 8.02(c), 8.05(a) or 8.07 hereunder or (iii) out of
Available Funds.

         (g) In order to comply with its duties under the Uniting and
Strengthening America by Providing Appropriate Tools Required to Intercept and
Obstruct Terrorism Act of 2001 ("U.S.A. Patriot Act"), the Indenture Trustee
shall obtain and verify certain information and documentation from the other
party to this Indenture, including, but not limited to, such party's name,
address, and other identifying information.

         (h) Whenever in the administration of this Indenture the Indenture
Trustee or the Securities Administrator shall deem it desirable that a matter be
proved or established prior to taking, suffering or omitting any action
hereunder, the Indenture Trustee or the Securities Administrator (unless other
evidence be herein specifically prescribed) may, in the absence of bad faith on
its part, conclusively rely upon an Officer's Certificate of the Issuer.

         (i) The rights, privileges, protections, immunities and benefits given
to the Indenture Trustee, including, without limitation, its right to be
indemnified, are extended to, and shall be enforceable by, the Indenture Trustee
and the Securities Administrator in each of its capacities hereunder, and to
each custodian employed to act hereunder.

         (j) The Indenture Trustee and the Securities Administrator may request
that the Issuer deliver an Officer's Certificate setting forth the names of
individuals and/or titles of officers authorized at such time to take specified
actions pursuant to this Indenture, which Officer's Certificate may be signed by
any person authorized to sign an Officer's Certificate, including any person
specified as so authorized in any such certificate previously delivered and not
superseded.

         Section 6.03 INDIVIDUAL RIGHTS. Each of the Indenture Trustee and the
Securities Administrator in its individual or any other capacity may become the
owner or pledgee of Notes and may otherwise deal with the Issuer or its
Affiliates with the same rights it would have if it were not Indenture Trustee
or Securities Administrator, as applicable, subject to the requirements of the
Trust Indenture Act. Any Note Registrar, co-registrar or co-paying agent may do
the same with like rights. However, the Indenture Trustee must comply with
Sections 6.11 and 6.12 hereof.

         Section 6.04 INDENTURE TRUSTEE'S AND SECURITIES ADMINISTRATOR'S
DISCLAIMER. The Indenture Trustee and the Securities Administrator shall not be
responsible for and make no representation as to the validity or adequacy of
this Indenture, the Notes or any other Basic Document, it shall not be
accountable for the Issuer's use of the proceeds from the Notes, and it shall
not be responsible for any statement of the Issuer in the Indenture or in any
document issued in connection with the sale of the Notes or in the Notes other
than the Indenture Trustee's certificate of authentication.

         Section 6.05 NOTICE OF EVENT OF DEFAULT. Subject to Section 5.01, the
Indenture Trustee shall promptly mail to each Noteholder, the Note Insurer and
the Insurer notice of the Event of Default after it is known to a Responsible
Officer of the Indenture Trustee, unless such Event of Default shall have been
waived or cured. Except in the case of an Event of Default in payment of
principal of or interest on any Note, the Indenture Trustee may withhold the
notice if and so long as a committee of its Responsible Officers in good faith
determines that withholding the notice is in the best interests of Noteholders.

         Section 6.06 REPORTS BY SECURITIES ADMINISTRATOR TO HOLDERS AND TAX
ADMINISTRATION. The Securities Administrator shall deliver to each Noteholder
such information as may be required to enable such holder to prepare its federal
and state income tax returns.

         The Securities Administrator shall prepare and file (or cause to be
prepared and filed), on behalf of the Owner Trustee, all information reports on
Form 1099 required to be provided to Noteholders and the Holder of the
Certificates. The Securities Administrator shall prepare and file all tax
returns required to be filed on behalf of the Trust pursuant to Section 5.03 of
the Trust Agreement. All tax returns and information reports shall be signed by
the Owner Trustee as provided in Section 5.03 of the Trust Agreement.

         Section 6.07 COMPENSATION AND INDEMNITY. The Indenture Trustee's
compensation shall not be limited by any law on compensation of a trustee of an
express trust. The Issuer shall reimburse the Indenture Trustee and the
Securities Administrator as provided in Section 8.02(c) for all reasonable
out-of-pocket expenses incurred or made by it, including costs of collection, in
addition to compensation for its services. Such expenses shall include
reasonable compensation and expenses, disbursements and advances of the
Indenture Trustee's or Securities Administrator's agents, counsel, accountants
and experts. The Issuer shall indemnify the Indenture Trustee and the Securities
Administrator as provided in Section 8.02(c) and the Insurer against any and all
loss, liability, claims, damage, costs or expense (including reasonable
attorneys' fees and expenses) incurred by it in connection with the
administration of this Trust and the performance of its duties hereunder and
under the other Basic Documents. The Indenture Trustee and the Securities
Administrator shall notify the Issuer promptly of any claim for which it may
seek indemnity. Failure by the Indenture Trustee, the Securities Administrator
or the Insurer to so notify the Issuer shall not relieve the Issuer of its
obligations hereunder. The Issuer shall defend any such claim, and the Indenture
Trustee and the Securities Administrator may have separate counsel and the
Issuer shall pay the fees and expenses of such counsel. The Issuer is not
obligated to reimburse any expense or indemnify against any loss, liability or
expense incurred by the Indenture Trustee, the Securities Administrator or the
Insurer or any of its agents, counsel, accountants or experts through the
Indenture Trustee's or such agent's, counsel's, accountant's or expert's own
willful misconduct, negligence or bad faith.

         The Issuer's payment and indemnity obligations to the Indenture Trustee
or the Securities Administrator pursuant to this Section 6.07 shall survive the
discharge of this Indenture and the termination or resignation of the Indenture
Trustee or the Securities Administrator. If the Indenture Trustee or the
Securities Administrator incurs expenses after the occurrence of an Event of
Default with respect to the Issuer, the expenses are intended to constitute
expenses of administration under Title 11 of the United States Code or any other
applicable federal or state bankruptcy, insolvency or similar law.

         Section 6.08 REPLACEMENT OF INDENTURE TRUSTEE AND THE SECURITIES
ADMINISTRATOR. No resignation or removal of the Indenture Trustee or the
Securities Administrator and no appointment of a successor Indenture Trustee or
successor Securities Administrator shall become effective until the acceptance
of appointment by the successor Indenture Trustee or successor Securities
Administrator pursuant to this Section 6.08. The Indenture Trustee or the
Securities Administrator may resign at any time by so notifying the Issuer and
the Insurer. The Insurer or Holders of a majority of Note Principal Balances of
each Class of Notes with consent of the Insurer may remove the Indenture Trustee
or the Securities Administrator by so notifying the Indenture Trustee or the
Securities Administrator and may appoint a successor Indenture Trustee or
successor Securities Administrator. The Issuer, with the consent of the Insurer,
shall remove the Indenture Trustee or Securities Administrator , as applicable,
if:

                  (i) the Indenture Trustee fails to comply with or qualify
         pursuant to the provisions of Section 6.11 hereof;

                  (ii) the Indenture Trustee or the Securities Administrator is
         adjudged a bankrupt or insolvent;

                  (iii) a receiver or other public officer takes charge of the
         Indenture Trustee or the Securities Administrator or its property; or

                  (iv) the Indenture Trustee or the Securities Administrator
         otherwise becomes incapable of acting.

                  (v) If the Indenture Trustee or the Securities Administrator
         resigns or is removed or if a vacancy exists in the office of the
         Indenture Trustee or the Securities Administrator for any reason (the
         Indenture Trustee or the Securities Administrator in such event being
         referred to herein as the retiring Indenture Trustee or retiring
         Securities Administrator), the Issuer shall promptly appoint a
         successor Indenture Trustee or successor Securities Administrator
         acceptable to the Insurer.

         Each of a successor Indenture Trustee or successor Securities
Administrator shall deliver a written acceptance of its appointment to the
retiring Indenture Trustee, retiring Securities Administrator and to the Issuer.
Thereupon, the resignation or removal of the retiring Indenture Trustee or
retiring Securities Administrator shall become effective, and the successor
Indenture Trustee or successor Securities Administrator shall have all the
rights, powers and duties of the Indenture Trustee or Securities Administrator
under this Indenture. Each of the successor Indenture Trustee and successor
Securities Administrator shall mail a notice of its succession to Noteholders.
The retiring Indenture Trustee or retiring Securities Administrator shall
promptly transfer all property held by it as Indenture Trustee or Securities
Administrator to the successor Indenture Trustee or successor Securities
Administrator.

         If a successor Indenture Trustee or successor Securities Administrator
does not take office within 60 days after the retiring Indenture Trustee or
retiring Securities Administrator resigns or is removed, the retiring Indenture
Trustee or retiring Securities Administrator, the successor Indenture Trustee or
successor Securities Administrator, the Issuer or the Holders of a majority of
Note Principal Balances of the Notes may petition any court of competent
jurisdiction for the appointment of a successor Indenture Trustee or successor
Securities Administrator.

         Notwithstanding the replacement of the Indenture Trustee or the
Securities Administrator pursuant to this Section, the Issuer's obligations
under Section 6.07 shall continue for the benefit of the retiring Indenture
Trustee or retiring Securities Administrator.

         Section 6.09 SUCCESSOR INDENTURE TRUSTEE AND SUCCESSOR SECURITIES
ADMINISTRATOR BY MERGER. If the Indenture Trustee or Securities Administrator
consolidates with, merges or converts into, or transfers all or substantially
all of its corporate trust business or assets to, another corporation, company
or banking association, the resulting, surviving or transferee corporation,
without any further act, shall be the successor Indenture Trustee or successor
Securities Administrator; provided, that, in the case of the Indenture Trustee,
such corporation, company or banking association shall be otherwise qualified
and eligible under Section 6.11 hereof. The Indenture Trustee and Securities
Administrator shall each provide the Rating Agencies, the Insurer and the Issuer
with prior written notice, and the Noteholders with prompt written notice, of
any such transaction.

         If at the time such successor or successors by merger, conversion or
consolidation to the Indenture Trustee or shall succeed to the trusts created by
this Indenture and any of the Notes shall have been authenticated but not
delivered, any such successor to the Indenture Trustee may adopt the certificate
of authentication of any predecessor trustee and deliver such Notes so
authenticated; and if at that time any of the Notes shall not have been
authenticated, any successor to the Indenture Trustee may authenticate such
Notes either in the name of any predecessor hereunder or in the name of the
successor to the Indenture Trustee; and in all such cases such certificates
shall have the full force which is in the Notes or in this Indenture provided
that the certificate of the Indenture Trustee shall have.

         Section 6.10 APPOINTMENT OF CO-INDENTURE TRUSTEE OR SEPARATE INDENTURE
TRUSTEE.

         (a) Notwithstanding any other provisions of this Indenture, at any
time, for the purpose of meeting any legal requirement of any jurisdiction in
which any part of the Trust Estate may at the time be located, the Indenture
Trustee, with the consent of the Insurer, shall have the power and may execute
and deliver all instruments to appoint one or more Persons to act as a
co-trustee or co-trustees, or separate trustee or separate trustees, of all or
any part of the Trust Estate, and to vest in such Person or Persons, in such
capacity and for the benefit of the Noteholders, such title to the Trust Estate,
or any part hereof, and, subject to the other provisions of this Section, such
powers, duties, obligations, rights and trusts as the Indenture 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 6.11 hereof.

         (b) 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 Indenture Trustee shall be conferred or imposed upon
         and exercised or performed by the Indenture 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
         Indenture 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 the Indenture 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 Estate 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 Indenture Trustee;

                  (ii) no trustee hereunder shall be personally liable by reason
         of any act or omission of any other trustee hereunder; and

                  (iii) the Indenture Trustee may at any time accept the
         resignation of or remove any separate trustee or co-trustee.

                  (iv) Any notice, request or other writing given to the
         Indenture 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 Indenture and the conditions of this
         Article VI. 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
         Indenture Trustee or separately, as may be provided therein, subject to
         all the provisions of this Indenture, specifically including every
         provision of this Indenture relating to the conduct of, affecting the
         liability of, or affording protection to, the Indenture Trustee. Every
         such instrument shall be filed with the Indenture Trustee.

                  (v) Any separate trustee or co-trustee may at any time
         constitute the Indenture 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 Indenture 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 Indenture Trustee, to the extent permitted by law, without the
         appointment of a new or successor trustee.

         Section 6.11 ELIGIBILITY; DISQUALIFICATION. The Indenture Trustee shall
at all times satisfy the requirements of TIA ss. 310(a). The Indenture Trustee
shall have a combined capital and surplus of at least $50,000,000 as set forth
in its most recent published annual report of condition and it or its parent
shall have a long-term debt rating of Baa3 or better by Moody's and BBB or
better by Standard & Poor's. The Indenture Trustee shall comply with TIA ss.
310(b), including the optional provision permitted by the second sentence of TIA
ss. 310(b)(9); PROVIDED, HOWEVER, that there shall be excluded from the
operation of TIA ss. 310(b)(1) any indenture or indentures under which other
securities of the Issuer are outstanding if the requirements for such exclusion
set forth in TIA ss. 310(b)(1) are met.

         Section 6.12 PREFERENTIAL COLLECTION OF CLAIMS AGAINST ISSUER. The
Indenture Trustee shall comply with TIA ss. 311(a), excluding any creditor
relationship listed in TIA ss. 311(b). An Indenture Trustee who has resigned or
been removed shall be subject to TIA ss. 311(a) to the extent indicated.

         Section 6.13 REPRESENTATIONS AND WARRANTIES. The Indenture Trustee
hereby represents that:

         (a) The Indenture Trustee is duly organized and validly existing as a
national banking association in good standing under the laws of the United
States with power and authority to own its properties and to conduct its
business as such properties are currently owned and such business is presently
conducted;

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

         (c) The consummation of the transactions contemplated by this Indenture
and the fulfillment of the terms hereof do not conflict with, result in any
breach of any of the terms and provisions of, or constitute (with or without
notice or lapse of time) a default under, the articles of association or bylaws
of the Indenture Trustee or any material agreement or other instrument to which
the Indenture Trustee is a party or by which it is bound which would adversely
affect its performance under this Indenture; and

         (d) There are no proceedings or investigations pending or to, the
Indenture Trustee's knowledge, threatened before any court, regulatory body,
administrative agency or other governmental instrumentality having jurisdiction
over the Indenture Trustee: (A) asserting the invalidity of this Indenture (B)
seeking to prevent the consummation of any of the transactions contemplated by
this Indenture or (C) seeking any determination or ruling that might materially
and adversely affect the performance by the Indenture Trustee of its obligations
under, or the validity or enforceability of, this Indenture.

         Section 6.14 DIRECTIONS TO INDENTURE TRUSTEE. The Indenture Trustee is
hereby directed:

         (a) to accept the pledge of the Mortgage Loans and hold the assets of
the Trust Estate in trust for the Noteholders;

         (b) to authenticate and deliver the Notes substantially in the form
prescribed by Exhibits A-1, A-2, A-3 and A-4 to this Indenture in accordance
with the terms of this Indenture; and

         (c) to take all other actions as shall be required to be taken by it
under the terms of this Indenture.

         Section 6.15 THE AGENTS. The provisions of this Indenture relating to
the limitations of the Indenture Trustee's liability and to its indemnity,
rights and protections shall inure also to the Paying Agent and Note Registrar.

         Section 6.16 ADMINISTRATIVE DUTIES.

         (a) The Indenture Trustee agrees to perform all of the duties of the
Issuer under the Depository Agreement. In addition to its duties performed under
the Depository Agreement, the Indenture Trustee shall take all appropriate
action that is the duty of the Issuer to take with respect to the following
matters under the Trust Agreement, the Mortgage Loan Purchase Agreement and the
Indenture (references are to sections of the Indenture):

                  (i) The Indenture Trustee shall notify the Owner Trustee if
         the Indenture Trustee obtains actual knowledge or written notice that
         any withholding tax is imposed on the Trust's payments (or allocations
         of income) to a Certificateholder;

                  (ii) the duty to cause the Note Register to be kept if the
         Issuer assumes the duties of Note Registrar, and to give the Indenture
         Trustee notice of any appointment of a new Note Registrar and the
         location, or change in location, of the Note Register (Section 4.02);

                  (iii) causing the preparation of the Notes for execution by
         the Owner Trustee upon the registration of any transfer or exchange of
         the Notes or execution of a supplemental indenture (Sections 4.02, 4.03
         and 9.06);

                  (iv) [reserved];

                  (v) causing the preparation of Definitive Notes in accordance
         with the instructions of any Clearing Agency (including the preparation
         of any temporary notes) (Section 4.14);

                  (vi) the maintenance of an office for registration of transfer
         or exchange of Notes (Section 3.02);

                  (vii) [reserved];

                  (viii) [reserved];

                  (ix) [reserved];

                  (x) the notification to the Owner Trustee of the Issuer's
         non-compliance with its negative covenants or restricted payment
         covenants upon actual knowledge by the Indenture Trustee of such
         non-compliance (Sections 3.09 and 3.25);

                  (xi) the furnishing of the Indenture Trustee with the names
         and addresses of Holders of Notes during any period when the Indenture
         Trustee is not the Note Registrar (Section 7.01).

         (b) In carrying out the foregoing duties or any of its other
obligations under this Indenture, the Indenture Trustee may enter into
transactions with or otherwise deal with any of its Affiliates; provided,
however, that the terms of any such transactions or dealings shall be in
accordance with any directions received from the Issuer and shall be, in the
Indenture Trustee's opinion, no less favorable to the Issuer than would be
available from unaffiliated parties.

         (c) The Indenture Trustee in its capacity as the Certificate Registrar,
and upon a request received from the Owner Trustee, shall promptly notify the
Certificateholders of (i) any change in the Corporate Trust Office of the Owner
Trustee, (ii) any amendment to the Trust Agreement requiring notice be given to
the Certificateholders and (iii) any other notice required to be given to the
Certificateholders by the Owner Trustee under the Trust Agreement.

         (d) With respect to matters that in the reasonable judgment of the
Indenture Trustee are non-ministerial, the Indenture Trustee shall not take any
action pursuant to this Article VII unless within a reasonable time before the
taking of such action, the Indenture Trustee shall have notified the Owner
Trustee, the Note Insurer, the Insurer and the Rating Agencies of the proposed
action and the Rating Agencies shall have notified the Issuer in writing that
such transaction shall not cause their respective ratings of the Notes, to be
reduced, qualified, suspended or withdrawn (without taking the Insurance Policy
or Note Insurance Policy into account) and the Owner Trustee shall not have
withheld consent or provided an alternative direction. For the purpose of the
preceding sentence, "non-ministerial matters" shall include:

         (i) the amendment of or any supplement to the Indenture;

         (ii) the initiation of any claim or lawsuit by the Issuer and the
compromise of any action, claim or lawsuit brought by or against the Issuer
(other than in connection with the collection of the Mortgage Loans);

         (iii) the amendment, change or modification of this Indenture or any of
the other Basic Documents;

         (iv) the appointment of successor Paying Agents and successor Indenture
Trustees pursuant to the Indenture or the appointment of a successor RMBS Master
Servicer or the consent to the assignment by the Certificate Registrar, Paying
Agent or Indenture Trustee of its obligations under the Indenture; and

         (v) the removal of the Indenture Trustee;

         provided, however, that the Owner Trustee shall receive notices of
         items pursuant to clause (i) above and with respect to clause (iii)
         above to the extent it is a party to the related Basic Document.

         Section 6.17 RECORDS. The Indenture Trustee shall maintain appropriate
books of account and records relating to services performed under this
Indenture, which books of account and records shall be accessible for inspection
by the Issuer at any time during normal business hours.

         Section 6.18 ADDITIONAL INFORMATION TO BE FURNISHED. The Indenture
Trustee shall furnish to the Issuer, the Note Insurer or the Insurer from time
to time such additional information regarding the Mortgage Loans, the HELOC
Mortgage Loans and the Notes as the Issuer, the Note Insurer or the Insurer
shall reasonably request, to the extent such information is readily available to
it.

         Section 6.19 EXECUTION OF DERIVATIVE CONTRACTS AND OTHER DOCUMENTS. The
Issuer hereby directs the Indenture Trustee to enter into and execute the
Corridor Contract and the Cap Contract and make all representations and
warranties contained therein on behalf of the Trust. The Issuer hereby directs
the Indenture Trustee to enter into and execute the Servicing Agreements and any
related document. The Indenture Trustee hereby acknowledges receipt by it of the
Corridor Contract and the Cap Contract. Upon receipt thereof from the Derivative
Counterparty under the Corridor Contract and the Cap Contract, the Indenture
Trustee shall deposit into the Payment Account an amount equal to all amounts
actually received by it under the Corridor Contract and the Cap Contract, in
each case not previously deposited into the Payment Account.

         Section 6.20 INDENTURE TRUSTEE'S APPLICATION FOR INSTRUCTIONS FROM THE
ISSUER.

         Any application by the Indenture Trustee for written instructions from
the Issuer may, at the option of the Indenture Trustee, set forth in writing any
action proposed to be taken or omitted by the Indenture Trustee under this
Indenture and the date on and/or after which such action shall be taken or such
omission shall be effective. The Indenture Trustee shall not be liable for any
action taken by, or omission of, the Indenture Trustee in accordance with a
proposal included in such application on or after the date specified in such
application (which date shall not be less than three Business Days after the
date any officer of the Issuer actually receives such application, unless any
such officer shall have consented in writing to any earlier date) unless prior
to taking any such action (or the effective date in the case of an omission),
the Indenture Trustee shall have received written instructions in response to
such application specifying the action to be taken or omitted.

         Section 6.21 LIMITATION OF LIABILITY.

         It is understood by the parties hereto other than Deutsche Bank
National Trust Company (the "Bank") that the sole recourse of the parties hereto
other than the Bank in respect of the obligations of the Trust hereunder and
under the other documents contemplated thereby and related thereto to which it
is a party shall be to the parties hereto other than the Bank. In addition, the
Bank is entering into this Indenture and the other documents contemplated
thereby and related thereto to which it is a party solely in its capacity as
Indenture Trustee under the Indenture and not in its individual capacity (except
as expressly stated herein) and in no case shall the Bank (or any Person acting
as successor Indenture Trustee under the Indenture) be personally liable for or
on account of any of the statements, representations, warranties, covenants or
obligations stated to be those of the Issuer hereunder or thereunder, all such
liability, if any, being expressly waived by the parties hereto and any person
claiming by, through or under such party, provided, however, that the Bank (or
any such successor Indenture Trustee) shall be personally liable hereunder and
thereunder for its own negligence or willful misconduct or for its material
breach of its covenants, representations and warranties contained herein or
therein, to the extent expressly covenanted or made in its individual capacity.
In no event shall the Indenture Trustee, in its capacity as Paying Agent, Note
Registrar or in any other capacity hereunder, be liable under or in connection
with this Indenture for indirect, special, incidental, punitive or consequential
losses or damages of any kind whatsoever, including but not limited to lost
profits, whether or not foreseeable, even if the Indenture Trustee has been
advised of the possibility thereof and regardless of the form of action in which
such damages are sought. The provisions of this section shall survive the
termination of the Indenture and the resignation or removal of the Indenture
Trustee.

         Section 6.22 ASSIGNMENT OF RIGHTS, NOT ASSUMPTION OF DUTIES.

         Anything herein contained to the contrary notwithstanding, (a) the
Issuer shall remain liable under this Indenture and each Basic Document to which
it is a party to the extent set forth therein to perform all of its duties and
obligations thereunder to the same extent as if this Indenture had not been
executed, (b) the exercise by the Indenture Trustee, the Insurer, the Note
Insurer or any Holder of any of their rights, remedies or powers hereunder shall
not release the Issuer from any of its duties or obligations under each of such
documents to which it is a party and (c) none of any Holder, the Insurer, the
Note Insurer nor the Indenture Trustee shall have any obligation or liability
under any of such documents to which the Issuer is a party by reason of or
arising out of this Indenture, nor shall any Holder, the Insurer, the Note
Insurer or the Indenture Trustee be obligated to perform any of the obligations
or duties of the Issuer thereunder or, except as expressly provided herein with
respect to the Indenture Trustee, to take any action to collect or enforce any
claim for payment assigned hereunder or otherwise.

<PAGE>

                                   ARTICLE VII

                         NOTEHOLDERS' LISTS AND REPORTS

         Section 7.01 ISSUER TO FURNISH INDENTURE TRUSTEE NAMES AND ADDRESSES OF
NOTEHOLDERS. The Issuer will furnish or cause to be furnished to the Indenture
Trustee (a) not more than five days after each Record Date, a list, in such form
as the Indenture Trustee may reasonably require, of the names and addresses of
the Holders of Notes as of such Record Date, and (b) at such other times as the
Indenture Trustee may request in writing, within 30 days after receipt by the
Issuer of any such request, a list of similar form and content as of a date not
more than 10 days prior to the time such list is furnished; PROVIDED, HOWEVER,
that so long as the Indenture Trustee is the Note Registrar, no such list shall
be required to be furnished to the Indenture Trustee.

         Section 7.02 PRESERVATION OF INFORMATION; COMMUNICATIONS TO
NOTEHOLDERS.

         (a) The Indenture Trustee shall preserve, in as current a form as is
reasonably practicable, the names and addresses of the Holders of Notes
contained in the most recent list furnished to the Indenture Trustee as provided
in Section 7.01 hereof and the names and addresses of Holders of Notes received
by the Indenture Trustee in its capacity as Note Registrar. The Indenture
Trustee may destroy any list furnished to it as provided in such Section 7.01
upon receipt of a new list so furnished.

         (b) Noteholders may communicate pursuant to TIA ss. 312(b) with other
Noteholders with respect to their rights under this Indenture or under the
Notes.

         (c) The Issuer, the Indenture Trustee and the Note Registrar shall have
the protection of TIA ss. 312(c).

         Section 7.03 REPORTS OF ISSUER.

         (a) Subject to Section 4.06 of the RMBS Master Servicing Agreement, the
Securities Administrator shall file with the Commission on behalf of the Issuer,
with a copy to the Issuer and the Insurer, the annual reports and the
information, documents and other reports (or such portions of any of the
foregoing as the Commission may from time to time by rules and regulations
prescribe) that the Issuer may be required to file with the Commission pursuant
to Sections 13 or 15(d) of the Exchange Act.

         (b) The Indenture Trustee shall supply (and the Indenture Trustee shall
transmit by mail to all Noteholders described in TIA ss. 313(c)) such summaries
of any information, documents and reports required to be filed by the Issuer
pursuant to this Section 7.03(a) and by rules and regulations prescribed from
time to time by the Commission.

         (c) Unless the Issuer otherwise determines, the fiscal year of the
Issuer shall end on December 31 of each year.

         Section 7.04 REPORTS BY INDENTURE TRUSTEE. If required by TIA ss.
313(a), within 60 days after each January 30 beginning with March 31, 2006, the
Indenture Trustee shall mail to each Noteholder as required by TIA ss. 313(c) a
brief report dated as of such date that complies with TIA ss. 313(a). The
Indenture Trustee also shall comply with TIA ss. 313(b).

         A copy of each report at the time of its mailing to Noteholders shall
be filed by the Securities Administrator with the Commission via EDGAR provided
that a copy of such report is furnished to the Securities Administrator by the
Indenture Trustee.

         Section 7.05 STATEMENTS TO NOTEHOLDERS. (a) With respect to each
Payment Date, the Securities Administrator shall make available via the
Securities Administrator's website, initially located at www.ctslink.com, to
each Noteholder and each Certificateholder, the Insurer, the Indenture Trustee,
each Derivative Counterparty, the Note Insurer, the Depositor, the Owner
Trustee, the Paying Agent and each Rating Agency, a statement setting forth the
following information as to the Notes, to the extent applicable:

         (i) the aggregate amount of collections with respect to the Mortgage
Loans;

         (ii) the Group I Available Funds, Group II-C Available Funds, Group
II-NC Available Funds, Group III Available Funds, Group IV Available Funds and
Group V Available Funds and Net Monthly Excess Cash Flow, with respect to the
Group I, Group II-C, Group II-NC, Group III and Group IV Loans and with respect
to the Group V Loans, payable to each Class of Noteholders for such Payment
Date, the Basis Risk Shortfall Carry-Forward Amount and Net WAC Shortfall
Carry-Forward Amount on each Class of Notes for such Payment Date and the
aggregate Unpaid Interest Shortfall on each Class of Notes for such Payment
Date;

         (iii) (a) the amount of such distribution to each Class of Notes
applied to reduce the Note Principal Balance thereof and (b) the aggregate
amount included therein representing Principal Prepayments;

         (iv) the Insured Payment, if any, paid by the Insurer under the
Insurance Policy for such Payment Date and the aggregate Insured Payments for
all prior Payment Dates paid by the Insurer under the Insurance Policy and not
yet reimbursed;

         (v) the amount of such distribution to Holders of each Class of Notes
allocable to interest;

         (vi) the amount of any distribution to the Certificates;

         (vii) if the distribution to the Holders of any Class of Notes is less
than the full amount that would be distributable to such Holders if there were
sufficient funds available therefor, the amount of the shortfall;

         (viii) the number and the aggregate Stated Principal Balance of the
Mortgage Loans as of the end of the related Due Period, determined in the
aggregate and separately for Loan Group I, Loan Group II-C, Loan Group II-NC,
Loan Group III and Loan Group IV and Loan Group V;

         (ix) the aggregate Note Principal Balance of each Class of Notes, after
giving effect to the amounts distributed on such Payment Date, separately
identifying any reduction thereof due to Realized Losses and the aggregate Note
Principal Balance of all of the Notes after giving effect to the distribution of
principal on such Payment Date;

         (x) the number and aggregate Stated Principal Balances of Mortgage
Loans (a) as to which the Monthly Payment is delinquent for 31-60 days, 61-90
days, 91 or more days, respectively, (b) in foreclosure and (c) that have become
REO Property, in each case as of the end of the preceding calendar month,
determined in the aggregate and separately for Loan Group I, Loan Group II-C,
Loan Group II-NC, Loan Group III and Loan Group IV and Loan Group V;

         (xi) the amount of payments from the Cap Contract and the Corridor
Contract;

         (xii) the Overcollateralization Increase Amount with respect to each
Loan Group, Overcollateralization Target Amount and Overcollateralized Amount,
if any, in each case as the end of the related Payment Date, in each case as
determined separately for each Loan Group;

         (xiii) the amount of any Advances and Compensating Interest payments;

         (xiv) the aggregate Realized Losses with respect to the related Payment
Date and cumulative Realized Losses since the Closing Date;

         (xv) the number and aggregate Stated Principal Balance of Mortgage
Loans repurchased pursuant to the Mortgage Loan Purchase Agreement for the
related Payment Date and cumulatively since the Closing Date determined in the
aggregate and separately for Loan Group I, Loan Group II-C, Loan Group II-NC,
Loan Group III and Loan Group IV and Loan Group V;

         (xvi) to the extent reported to the Securities Administrator, the book
value of any REO Property;

         (xvii) the amount of any Prepayment Interest Shortfalls or Relief Act
Shortfalls for such Payment Date;

         (xviii) the aggregate Stated Principal Balance of Mortgage Loans
purchased pursuant to Section 3.18 of the Servicing Agreement for the related
Payment Date and cumulatively since the Closing Date;

         (xix) the amounts withdrawn from the related Group I, Group II-C, Group
II-NC, Group III, Group IV, Group V and Group VI Pre-Funding Account and used to
make payments to Noteholders on that Payment Date, the amount remaining on
deposit following such Payment Date, and the amount withdrawn from the related
Group I, Group II-C, Group II-NC, Group III, Group IV, Group V and Group VI
Pre-Funding Account used to buy certain Group I, Group II-C, Group II-NC, Group
III, Group IV and Group V Subsequent Mortgage Loans and Group VI Subsequent
HELOC Mortgage Loans prior to such Payment Date;

         (xx) the Floating Allocation Percentage of Loan Group VI;

         (xxi) the Investor Interest Collections of Loan Group VI for such
Payment Date;

         (xxii) the HELOC Servicing Fee and RMBS Servicing Fee for such Payment
Date;

         (xxiii) if a Stepdown Date has occurred on the related Loan Group;

         (xxiv) the Charged-Off Amount for the related Payment Date and the
cumulative Charged-Off Amount since the Closing Date;

         (xxv) the Investor Charge-Off Amount for such Payment Date;

         (xxvi) the percentage of cumulative losses under a Servicer Termination
Event;

         (xxvii) the Group VI Excess Spread Percentage for such Payment Date;

         (xxviii) the Group VI Excess Spread Percentage on a rolling three-month
average basis;

         (xxix) the number and aggregate Stated Principal Balances of HELOC
Mortgage Loans (a) as to which the Monthly Payment are 100 days or more
delinquent, (b) in foreclosure or (c) that have become REO Property;

         (xxx) the aggregated Stated Principal Balance of the three largest
HELOC Mortgage Loans as of such Payment Date;

         (xxxi) the Overcollateralization Target Amount for the related Loan
Group as of the preceding Payment Date;

         (xxxii) the Overcollateralization Target Amount for the related Loan
Group for such Payment Date;

         (xxxiii) the Investor Principal Distribution Amount for such Payment
Date;

         (xxxiv) the Invested Amount of Loan Group VI for such Payment Date;

         (xxxv) the Overcollateralization Reduction Amount for such Payment
Date;

         (xxxvi) the Excess Overcollateralization Amount for such Payment Date;
and

         (xxxvii) the Class V-A-4-D Insured Amount, if any, paid by the Note
Insurer under the Note Insurance Policy for such Payment Date and the aggregate
Class V-A-4-D Insured Payments for all prior Payment Dates paid by the Note
Insurer under the Note Insurance Policy and not yet reimbursed.

         Items (iii) and (v) above shall be presented on the basis of a Note
having a $1,000 denomination. In addition, by January 31 of each calendar year
following any year during which the Notes are outstanding, the Securities
Administrator shall furnish a report to each Noteholder of record if so
requested in writing at any time during each calendar year as to the aggregate
of amounts reported pursuant to (iii) and (v) with respect to the Notes for such
calendar year.

         The Securities Administrator may conclusively rely upon the Remittance
Report provided by the RMBS Master Servicer and the HELOC Servicer to the
Securities Administrator pursuant to the RMBS Master Servicing Agreement or
Section 4.01 of the HELOC Servicing Agreement, as applicable, in its preparation
of its Statement to Noteholders and on information provided to it by the
Derivative Counterparty and the Insurer.

         The Securities Administrator will make the monthly statements provided
for in this Section (and, at its option, any additional files containing the
same information in an alternative format) available each month to Noteholders,
other parties to this Agreement and any other interested parties via the
Securities Administrator's website. The Securities Administrator's website shall
initially be located at www.ctslink.com. Parties that are unable to use the
website are entitled to have a paper copy mailed to them via first class mail by
calling the customer service desk at 301-815-6600 and indicating such. The
Securities Administrator may have the right to change the way the monthly
statements are distributed in order to make such distribution more convenient
and/or more accessible to the above parties and the Securities Administrator
shall provide timely and adequate notification to all above parties regarding
any such changes. The Securities Administrator shall also make such monthly
statements and other information that the Indenture Trustee reasonably requires
to make distributions hereunder and under the Trust Agreement available to the
Indenture Trustee no later than two Business Days prior to each Payment Date.

         The Securities Administrator shall be entitled to rely on but shall not
be responsible for the content or accuracy of any information provided by third
parties for purposes of preparing the monthly statement, and may affix thereto
any disclaimer it deems appropriate in its reasonable discretion (without
suggesting liability on the part of any other party hereto).

<PAGE>

                                  ARTICLE VIII

                      ACCOUNTS, DISBURSEMENTS AND RELEASES

         Section 8.01 COLLECTION OF MONEY. Except as otherwise expressly
provided herein, the Indenture Trustee may demand payment or delivery of, and
shall receive and collect, directly and without intervention or assistance of
any fiscal agent or other intermediary, all money and other property payable to
or receivable by the Indenture Trustee pursuant to this Indenture. The Indenture
Trustee shall apply all such money received by it as provided in this Indenture.
Except as otherwise expressly provided in this Indenture, if any default occurs
in the making of any payment or performance under any agreement or instrument
that is part of the Trust Estate, the Indenture Trustee may take such action as
may be appropriate to enforce such payment or performance, including the
institution and prosecution of appropriate Proceedings. Any such action shall be
without prejudice to any right to claim a Default or Event of Default under this
Indenture and any right to proceed thereafter as provided in Article V.

         Section 8.02 TRUST ACCOUNTS.

         (a) On or prior to the Closing Date, the Issuer shall cause the
Indenture Trustee to establish and maintain, in the name of the Indenture
Trustee, for the benefit of the Noteholders, the Insurer and the Derivative
Contract Counterparty, the Payment Account as provided in Section 3.01 hereof.

         (b) All monies deposited from time to time in the Payment Account and
the Certificate Distribution Account and all deposits therein pursuant to this
Indenture (other than deposits of any gain or income on investments thereof) are
for the benefit of the Noteholders and the Certificateholders. The funds in the
Certificate Distribution Account and Payment Account shall be held uninvested.

         (c) On each Payment Date, the Indenture Trustee as Paying Agent, in
accordance with the statement for such Payment Date provided by the Securities
Administrator pursuant to Section 7.05, shall be entitled to withdraw from the
Payment Account the all amounts reimbursable by the Issuer or from the Payment
Account to the Indenture Trustee or the Securities Administrator pursuant to any
provision of any Basic Document, and shall, first, pay the Note Insurance Policy
Premium Amount to the Note Insurer (provided, that no amounts payable to the
Note Insurer shall be from Group VI Available Funds), and, second, distribute
all remaining amounts on deposit in the Payment Account to the Noteholders in
respect of the Notes and to such other persons in the order of priority set
forth in Section 3.05, 3.06 and 3.07 hereof (except as otherwise provided in
Section 5.04(b) hereof).

         (d) The Indenture Trustee shall not invest any funds in the Payment
Account.

         Section 8.03 OFFICER'S CERTIFICATE. The Indenture Trustee shall receive
at least seven Business Days' notice when requested by the Issuer to take any
action pursuant to Section 8.05(a) hereof, accompanied by copies of any
instruments to be executed, and the Indenture Trustee shall also require, as a
condition to such action, an Officer's Certificate, in form and substance
satisfactory to the Indenture Trustee, stating the legal effect of any such
action, outlining the steps required to complete the same, and concluding that
all conditions precedent to the taking of such action have been complied with.

         Section 8.04 TERMINATION UPON DISTRIBUTION TO NOTEHOLDERS. This
Indenture and the respective obligations and responsibilities of the Issuer, the
Securities Administrator and the Indenture Trustee created hereby shall
terminate upon the distribution to Noteholders, the Insurer, the Note Insurer,
the Certificate Paying Agent on behalf of the Certificateholders and the
Indenture Trustee of all amounts required to be distributed pursuant to Article
III; PROVIDED, HOWEVER, that in no event shall the trust created hereby continue
beyond the expiration of 21 years from the death of the survivor of the
descendants of Joseph P. Kennedy, the late ambassador of the United States to
the Court of St. James, living on the date hereof.

         Section 8.05 RELEASE OF TRUST ESTATE.

         (a) Subject to the payment of its fees and expenses, the Indenture
Trustee may, and when required by the provisions of this Indenture shall,
execute instruments to release property from the lien of this Indenture, or
convey the Indenture Trustee's interest in the same, in a manner and under
circumstances that are not inconsistent with the provisions of this Indenture,
including for the purposes of any repurchase by the RMBS Servicer of a Mortgage
Loan pursuant to Section 3.18 of the related Servicing Agreement. No party
relying upon an instrument executed by the Indenture Trustee as provided in
Article VIII hereunder shall be bound to ascertain the Indenture Trustee's
authority, inquire into the satisfaction of any conditions precedent, or see to
the application of any monies.

         (b) The Indenture Trustee shall, at such time as (i) there are no Notes
Outstanding and (ii) all sums then due and unpaid to the Indenture Trustee, the
Securities Administrator and the RMBS Master Servicer pursuant to this Indenture
have been paid and (iii) all sums due to the Insurer and the Note Insurer have
been paid, release any remaining portion of the Trust Estate that secured the
Notes from the lien of this Indenture.

         (c) The Indenture Trustee shall release property from the lien of this
Indenture pursuant to this Section 8.05 only upon receipt of a request from the
Issuer accompanied by an Officers' Certificate and an Opinion of Counsel stating
that all applicable requirements have been satisfied, and a letter from the
Insurer stating that the Insurer has no objection to such request from the
Issuer, except as otherwise provided in clause (a).

         Section 8.06 SURRENDER OF NOTES UPON FINAL PAYMENT. By acceptance of
any Note, the Holder thereof agrees to surrender such Note to the Indenture
Trustee promptly, prior to such Noteholder's receipt of the final payment
thereon.

         Section 8.07 OPTIONAL REDEMPTION OF THE NOTES.

         (a) The Majority Certificateholder shall have the option to purchase
the assets of the Trust related to Loan Group I, Loan Group II-C, Loan Group
II-NC, Loan Group III, Loan Group IV and Loan Group V and thereby redeem the
Class I-A, Class II-A, Class III-A, Class IV-A, Class V-A, Class M, Class B,
Class V-M, Class V-B and Class N Notes on or after the Payment Date on which the
Stated Principal Balance of the related Mortgage Loans, and properties acquired
in respect thereof has been reduced to less than 10% of the sum of the Group I,
Group II-C, Group II-NC, Group III, Group IV and Group V Cut-off Date Balance;
provided, however, that no such redemption shall occur unless (i) the Note
Insurer is reimbursed for all payments made by the Note Insurer under the Note
Insurance Policy with respect to the Class V-A-4-D Notes, including interest
thereon, to the extent not previously paid or reimbursed and (ii) the Note
Insurer is reimbursed for any payments made by the Note Insurer under the Note
Insurance Policy with respect to the Class V-A-4-D Notes, including interest
thereon, as a result of such redemption. The Majority Certificateholder shall
have the option to purchase the assets of the Trust related to Loan Group I,
Loan Group II-C, Group II-NC, Loan Group III and Loan Group IV and thereby
redeem the Class I-A, Class II-A, Class III-A, Class IV-A, Class M, Class B and
Class N Notes on or after the Payment Date on which the Stated Principal Balance
of the Mortgage Loans, and properties acquired in respect thereof has been
reduced to less than 10% of the sum of the Group I, Group II-C, Group II-NC,
Group III and Group IV Cut-off Date Balance; provided, however, that no such
redemption shall occur unless (i) the Note Insurer is reimbursed for all
payments made by the Note Insurer under the Note Insurance Policy with respect
to the Class V-A-4-D Notes, including interest thereon, to the extent not
previously paid or reimbursed and (ii) the Note Insurer is reimbursed for any
payments made by the Note Insurer under the Note Insurance Policy with respect
to the Class V-A-4-D Notes, including interest thereon, as a result of such
redemption; and provided, further, that no such optional termination may be
exercised unless an opinion has been rendered by nationally recognized tax
counsel that such optional termination will not adversely affect the
characterization as indebtedness of any class of Notes currently outstanding.
The Majority Certificateholder shall have the option to purchase the assets of
the Trust related to Loan Group V and thereby redeem the Class V-A, Class V-M,
Class V-B and Class N Notes on or after the Payment Date on which the Stated
Principal Balance of the related Mortgage Loans, and properties acquired in
respect thereof has been reduced to less than 10% of the Group V Cut-off Date
Balance; provided, however, that no such redemption shall occur unless (i) the
Note Insurer is reimbursed for all payments made by the Note Insurer under the
Note Insurance Policy with respect to the Class V-A-4-D Notes, including
interest thereon, to the extent not previously paid or reimbursed and (ii) the
Note Insurer is reimbursed for any payments made by the Note Insurer under the
Note Insurance Policy with respect to the Class V-A-4-D Notes, including
interest thereon, as a result of such redemption; and provided, further, that no
such optional termination may be exercised unless an opinion has been rendered
by nationally recognized tax counsel that such optional termination will not
adversely affect the characterization as indebtedness of any class of Notes
currently outstanding.

         (b) The Majority Certificateholder shall have the option to purchase
the HELOC Mortgage Loans and thereby redeem the Class VI-A Notes on any Payment
Date on or after the Payment Date on which the Note Principal Balance of the
Class VI-A Notes declines to 10% or less of the Note Principal Balance of the
Class VI-A Notes on the Closing Date. If the Majority Certificateholder fails to
exercise this right, the Insurer may purchase the HELOC Mortgage Loans 60 days
after the Payment Date on which the Note Principal Balance of the Class VI-A
Notes declines to 10% or less of the Note Principal Balance of the Class VI-A
Notes on the Closing Date.

         (c) The aggregate redemption price (the "Redemption Price") for the
Notes in connection with any termination pursuant to clause (a) above will be
equal to 100% of the aggregate outstanding Note Principal Balance of the related
Notes plus and accrued and unpaid interest thereon (including any related Unpaid
Interest Shortfall, Net WAC Shortfall Carry-Forward Amount and Basis Risk
Shortfall Carry-Forward Amount) at the Note Interest Rate through the date on
which the Notes are redeemed in full together with all amounts due and owing to
the RMBS Master Servicer, the Securities Administrator, the Indenture Trustee,
and the Note Insurer under this Indenture, the Note Insurance Policy
or any other applicable Basic Document (which amounts shall be specified in
writing upon request of the Issuer by the Indenture Trustee, the Securities
Administrator, the related Servicer, the RMBS Master Servicer or the Note
Insurer, as applicable).

         (d) The aggregate redemption price (the "Class VI-A Redemption Price")
for the Notes in connection with any termination pursuant to clause (b) above
will be equal to 100% of the aggregate outstanding Note Principal Balance of the
related Notes plus and accrued and unpaid interest thereon (including any
related Unpaid Interest Shortfall, Net WAC Shortfall Carry-Forward Amount and
Basis Risk Shortfall Carry-Forward Amount) at the Note Interest Rate through the
date on which the Notes are redeemed in full together with all amounts due and
owing to the applicable Servicer, the Securities Administrator, the Indenture
Trustee and the Insurer under this Indenture, the Insurance Policy
or any other applicable Basic Document (which amounts shall be specified in
writing upon request of the Issuer by the Indenture Trustee, the Securities
Administrator, the related Servicer or the Insurer, as applicable).

         (e) In order to exercise the foregoing option with respect to the Notes
other than the Class VI-A Notes, the Majority Certificateholder shall provide
written notice of its exercise of such option and the Redemption Price to the
Indenture Trustee, the Securities Administrator, the Issuer, the Owner Trustee,
the RMBS Master Servicer and the applicable Servicer at least 15 days prior to
its exercise. Following receipt of the notice, the Indenture Trustee shall
provide written notice to the applicable Noteholders of the final payment on the
applicable Notes. In addition, the Majority Certificateholder shall, not less
than one Business Day prior to the proposed Payment Date on which such
redemption is to be made, deposit the Redemption Price specified in (c) above
with the Indenture Trustee, who shall deposit the Redemption Price into the
Payment Account and shall, on the Payment Date after receipt of the funds, apply
such funds to make final payments of principal and interest on the Notes in
accordance with Sections 3.05 or 3.06, as applicable, hereof and payment to the
Indenture Trustee and the RMBS Master Servicer as set forth in (c) above and
payments in full to the Note Insurer for all amounts owing under the Note
Insurance Policy, and this Indenture shall be discharged subject to the
provisions of Section 4.10 hereof. If for any reason the amount deposited by the
Majority Certificateholder is not sufficient to make such redemption or as the
Indenture Trustee is notified such redemption cannot be completed for any
reason, (a) the amount so deposited by the Majority Certificateholder with the
Indenture Trustee shall be immediately returned to the Majority
Certificateholder in full and shall not be used for any other purpose or be
deemed to be part of the Trust Estate and (b) the Note Principal Balance of the
applicable Notes shall continue to bear interest at the related Note Interest
Rate.

         In order to exercise the foregoing option with respect to the Class
VI-A Notes, the Majority Certificateholder shall provde written notice of its
exercise of such option and the Owner Trustee, the HELOC Servicer and the HELOC
Back-Up Servicer at least 15 days prior to its exercise. Following receipt of
the notice, the Indenture Trustee shall provide written notice to the Class VI-A
Noteholders of the final payment on the Class VI-A Notes. In addition, the
Majority Certificateholder shall, not less than one Business Day prior to the
Proposed Payment Date on which such redemption is to be made, deposit the Class
VI-A Redemption Price specified in (e) above with the Indenture Trustee, who
shall deposit the Class VI-A Redemption Price into the Payment Account and
shall, on the Payment Date after receipt of the funds, apply such funds to make
final payments of principal and interest on the Notes in accordance with Section
3.07 hereof and payment to the Indenture Trustee and the HELOC Servicer as set
forth in (e) above and payments in full to the Insurer for all amounts owing
under the Insurance Policy, and this Indenture shall be discharged subject to
the provisions of Section 4.10 hereof. If for any reason the amount deposited by
the Majority Certificateholder is not sufficient to make such redemption or as
the Indenture Trustee is notified such redemption cannot be completed for any
reason, (a) the amount so depoisted by the Majority Certificateholder with the
Indenture Trustee shall be immediately returned to the Majority
Certificateholder in full and shall not be used for any other purpose or be
deemed to be part of th Trust Estate and (b) the Note Principal Balance of the
Class VI-A Notes shall continue to bear interest at the related Note Interest
Rate.

<PAGE>

                                   ARTICLE IX

                             SUPPLEMENTAL INDENTURES

         Section 9.01 SUPPLEMENTAL INDENTURES WITHOUT CONSENT OF NOTEHOLDERS.

         (a) Without the consent of the Holders of any Notes but with prior
written consent of the Insurer and the Note Insurer and prior notice to the
Rating Agencies and the Owner Trustee, the Insurer, the Note Insurer, the
Issuer, the Securities Administrator and the Indenture Trustee, when authorized
by an Issuer Request, at any time and from time to time, may enter into one or
more indentures supplemental hereto (which shall conform to the provisions of
the TIA as in force at the date of the execution thereof), in form satisfactory
to the Indenture Trustee, for any of the following purposes:

                  (i) to correct or amplify the description of any property at
         any time subject to the lien of this Indenture, or better to assure,
         convey and confirm unto the Indenture Trustee any property subject or
         required to be subjected to the lien of this Indenture, or to subject
         to the lien of this Indenture additional property;

                  (ii) to evidence the succession, in compliance with the
         applicable provisions hereof, of another person to the Issuer, and the
         assumption by any such successor of the covenants of the Issuer herein
         and in the Notes contained;

                  (iii) to add to the covenants of the Issuer, for the benefit
         of the Holders of the Notes or the Insurer, or to surrender any right
         or power herein conferred upon the Issuer;

                  (iv) to convey, transfer, assign, mortgage or pledge any
         property to or with the Indenture Trustee;

                  (v) to cure any ambiguity, to correct or supplement any
         provision herein or in any supplemental indenture that may be
         inconsistent with any other provision herein or in any supplemental
         indenture;

                  (vi) to make any other provisions with respect to matters or
         questions arising under this Indenture or in any supplemental
         indenture; provided, that such action shall not materially and
         adversely affect the interests of the Insurer and the Holders of the
         Notes as evidenced by an Opinion of Counsel;

                  (vii) to evidence and provide for the acceptance of the
         appointment hereunder by a successor trustee with respect to the Notes
         and to add to or change any of the provisions of this Indenture as
         shall be necessary to facilitate the administration of the trusts
         hereunder by more than one trustee, pursuant to the requirements of
         Article VI hereof; or

                  (viii) to modify, eliminate or add to the provisions of this
         Indenture to such extent as shall be necessary to effect the
         qualification of this Indenture under the TIA or under any similar
         federal statute hereafter enacted and to add to this Indenture such
         other provisions as may be expressly required by the TIA as evidenced
         by an Opinion of Counsel;

PROVIDED, HOWEVER, that no such indenture supplements shall be entered into
unless the Indenture Trustee shall have received an Opinion of Counsel as to the
enforceability of any such indenture supplement, and that, except for indenture
supplements entered into for the purposes described in (v) and (viii) above,
such indenture supplements shall not adversely affect in any material respect
the interests of any Noteholder and to the effect that (i) such indenture
supplement is permitted hereunder and (ii) entering into such indenture
supplement will not result in a "substantial modification" of the Notes under
Treasury Regulation Section 1.1001-3 or adversely affect the status of the Notes
as indebtedness for federal income tax purposes.

         The Indenture Trustee is hereby authorized to join in the execution of
any such supplemental indenture and to make any further appropriate agreements
and stipulations that may be therein contained.

         (b) The Issuer, the Securities Administrator and the Indenture Trustee,
when authorized by an Issuer Request, may, also without the consent of any of
the Holders of the Notes but with the prior written consent of the Insurer, the
Note Insurer and prior notice to the Rating Agencies, the Note Insurer and the
Insurer, enter into an indenture or indentures supplemental hereto for the
purpose of adding any provisions to, or changing in any manner or eliminating
any of the provisions of, this Indenture or of modifying in any manner the
rights of the Holders of the Notes under this Indenture; PROVIDED, HOWEVER, that
such action as evidenced by an Opinion of Counsel, (i) is permitted by this
Indenture, (ii) shall not adversely affect in any material respect the interests
of any Noteholder and (iii) if 100% of the Certificates and the Retained Notes
(to the extent that such Retained Notes have not received a "will be debt"
opinion) are not owned by American Home Mortgage Acceptance Inc., cause the
Issuer to be subject to an entity level tax for federal income tax purposes.

         Section 9.02 SUPPLEMENTAL INDENTURES WITH CONSENT OF NOTEHOLDERS. The
Issuer, the Securities Administrator and the Indenture Trustee, when authorized
by an Issuer Request, also may, with prior notice to the Rating Agencies and,
with the prior written consent of the Insurer and the Note Insurer and with the
consent of the Holders of not less than a majority of the Note Principal Balance
of each Class of Notes affected thereby, by Act (as defined in Section 10.03
hereof) of such Holders, or the Insurer pursuant to Section 4.12 hereof,
delivered to the Issuer, the Securities Administrator and the Indenture Trustee,
enter into an indenture or indentures supplemental hereto for the purpose of
adding any provisions to, or changing in any manner or eliminating any of the
provisions of, this Indenture or of modifying in any manner the rights of the
Holders of the Notes under this Indenture; PROVIDED, HOWEVER, that no such
supplemental indenture shall, without the consent of the Holder of each Note
affected thereby:

                  (i) change the date of payment of any installment of principal
         of or interest on any Note, or reduce the principal amount thereof or
         the interest rate thereon, change the provisions of this Indenture
         relating to the application of collections on, or the proceeds of the
         sale of, the Trust Estate and to payment of principal of or interest on
         the Notes, or change any place of payment where, or the coin or
         currency in which, any Note or the interest thereon is payable, or
         impair the right to institute suit for the enforcement of the
         provisions of this Indenture requiring the application of funds
         available therefor, as provided in Article V, to the payment of any
         such amount due on the Notes on or after the respective due dates
         thereof;

                  (ii) reduce the percentage of the Note Principal Balances of
         the Notes, or any Class of Notes, the consent of the Holders of which
         is required for any such supplemental indenture, or the consent of the
         Holders of which is required for any waiver of compliance with certain
         provisions of this Indenture or certain defaults hereunder and their
         consequences provided for in this Indenture;

                  (iii) modify or alter the provisions of the proviso to the
         definition of the term "Outstanding" or modify or alter the exception
         in the definition of the term "Holder";

                  (iv) reduce the percentage of the Note Principal Balances of
         the Notes, or any Class of Notes, required to direct the Indenture
         Trustee to direct the Issuer to sell or liquidate the Trust Estate
         pursuant to Section 5.04 hereof;

                  (v) modify any provision of this Section 9.02 except to
         increase any percentage specified herein or to provide that certain
         additional provisions of this Indenture or the Basic Documents cannot
         be modified or waived without the consent of the Holder of each Note
         affected thereby;

                  (vi) modify any of the provisions of this Indenture in such
         manner as to affect the calculation of the amount of any payment of
         interest or principal due on any Note on any Payment Date (including
         the calculation of any of the individual components of such
         calculation); or

                  (vii) permit the creation of any lien ranking prior to or on a
         parity with the lien of this Indenture with respect to any part of the
         Trust Estate or, except as otherwise permitted or contemplated herein,
         terminate the lien of this Indenture on any property at any time
         subject hereto or deprive the Holder of any Note of the security
         provided by the lien of this Indenture;

and PROVIDED, FURTHER, that such action shall not, as evidenced by an Opinion of
Counsel, cause the Issuer (if 100% of the Certificates and the Retained Notes
(to the extent that such Retained Notes have not received a "will be debt"
opinion) are not owned by American Home Mortgage Acceptance Inc.) to be subject
to an entity level tax for federal income tax purposes.

         Any such action shall not adversely affect in any material respect the
interest of any Holder (other than a Holder who shall consent to such
supplemental indenture) as evidenced by an Opinion of Counsel (provided by the
Person requesting such supplemental indenture) delivered to the Indenture
Trustee.

         It shall not be necessary for any Act of Noteholders under this Section
9.02 to approve the particular form of any proposed supplemental indenture, but
it shall be sufficient if such Act shall approve the substance thereof.

         Promptly after the execution by the Issuer, the Securities
Administrator and the Indenture Trustee of any supplemental indenture pursuant
to this Section 9.02, the Indenture Trustee shall mail to the Owner Trustee and
the Holders of the Notes to which such amendment or supplemental indenture
relates a notice setting forth in general terms the substance of such
supplemental indenture. Any failure of the Indenture Trustee to mail such
notice, or any defect therein, shall not, however, in any way impair or affect
the validity of any such supplemental indenture.

         Section 9.03 EXECUTION OF SUPPLEMENTAL INDENTURES. In executing, or
permitting the additional trusts created by, any supplemental indenture
permitted by this Article VI or the modification thereby of the trusts created
by this Indenture, the Indenture Trustee shall be entitled to receive, and
subject to Sections 6.01 and 6.02 hereof, shall be fully protected in relying
upon, an Opinion of Counsel stating that the execution of such supplemental
indenture is authorized or permitted by this Indenture and that all conditions
precedent thereto have been complied with. The Indenture Trustee may, but shall
not be obligated to, enter into any such supplemental indenture that affects the
Indenture Trustee's own rights, duties, liabilities or immunities under this
Indenture or otherwise.

         Section 9.04 EFFECT OF SUPPLEMENTAL INDENTURE. Upon the execution of
any supplemental indenture pursuant to the provisions hereof, this Indenture
shall be and shall be deemed to be modified and amended in accordance therewith
with respect to the Notes affected thereby, and the respective rights,
limitations of rights, obligations, duties, liabilities and immunities under
this Indenture of the Indenture Trustee, the Issuer and the Holders of the Notes
shall thereafter be determined, exercised and enforced hereunder subject in all
respects to such modifications and amendments, and all the terms and conditions
of any such supplemental indenture shall be and be deemed to be part of the
terms and conditions of this Indenture and the Notes for any and all purposes.

         Section 9.05 CONFORMITY WITH TRUST INDENTURE ACT. Every amendment of
this Indenture and every supplemental indenture executed pursuant to this
Article IX shall conform to the requirements of the Trust Indenture Act as then
in effect so long as this Indenture shall then be qualified under the Trust
Indenture Act.

         Section 9.06 REFERENCE IN NOTES TO SUPPLEMENTAL INDENTURES. Notes
authenticated and delivered after the execution of any supplemental indenture
pursuant to this Article IX may, and if required by the Indenture Trustee shall,
bear a notation in form approved by the Indenture Trustee as to any matter
provided for in such supplemental indenture. If the Issuer or the Indenture
Trustee shall so determine, new Notes so modified as to conform, in the opinion
of the Indenture Trustee and the Issuer, to any such supplemental indenture may
be prepared and executed by the Issuer and authenticated and delivered by the
Indenture Trustee in exchange for Outstanding Notes.

<PAGE>

                                    ARTICLE X

                                  MISCELLANEOUS

         Section 10.01 COMPLIANCE CERTIFICATES AND OPINIONS, ETC. (a) Upon any
application or request by the Issuer to the Indenture Trustee to take any action
under any provision of this Indenture, the Issuer shall furnish to the Indenture
Trustee (i) an Officer's Certificate stating that all conditions precedent, if
any, provided for in this Indenture relating to the proposed action have been
complied with and (ii) an Opinion of Counsel stating that in the opinion of such
counsel all such conditions precedent, if any, have been complied with, except
that, in the case of any such application or request as to which the furnishing
of such documents is specifically required by any provision of this Indenture,
no additional certificate or opinion need be furnished.

         Every certificate or opinion with respect to compliance with a
condition or covenant provided for in this Indenture shall include:

         (1) a statement that each signatory of such certificate or opinion has
read or has caused to be read such covenant or condition and the definitions
herein relating thereto;

         (2) a brief statement as to the nature and scope of the examination or
investigation upon which the statements or opinions contained in such
certificate or opinion are based;

         (3) a statement that, in the opinion of each such signatory, such
signatory has made such examination or investigation as is necessary to enable
such signatory to express an informed opinion as to whether or not such covenant
or condition has been complied with;

         (4) a statement as to whether, in the opinion of each such signatory,
such condition or covenant has been complied with; and

         (5) if the signatory of such certificate or opinion is required to be
Independent, the statement required by the definition of the term "Independent".

         (a) Prior to the deposit of any Collateral or other property or
securities with the Indenture Trustee that is to be made the basis for the
release of any property or securities subject to the lien of this Indenture, the
Issuer shall, in addition to any obligation imposed in Section 10.01 (a) or
elsewhere in this Indenture, furnish to the Indenture Trustee an Officer's
Certificate certifying or stating the opinion of each person signing such
certificate as to the fair value (within 90 days prior to such deposit) to the
Issuer of the Collateral or other property or securities to be so deposited and
a report from a nationally recognized accounting firm verifying such value.

         (b) Whenever the Issuer is required to furnish to the Indenture Trustee
an Officer's Certificate certifying or stating the opinion of any signer thereof
as to the matters described in clause (i) above, the Issuer shall also deliver
to the Indenture Trustee an Independent Certificate from a nationally recognized
accounting firm as to the same matters, if the fair value of the securities to
be so deposited and of all other such securities made the basis of any such
withdrawal or release since the commencement of the then current fiscal year of
the Issuer, as set forth in the certificates delivered pursuant to clause (i)
above and this clause (ii), is 10% or more of the Note Principal Balances of the
Notes, but such a certificate need not be furnished with respect to any
securities so deposited, if the fair value thereof as set forth in the related
Officer's Certificate is less than $25,000 or less than one percent of the then
outstanding Note Principal Balances of the Notes.

         (c) Whenever any property or securities are to be released from the
lien of this Indenture, the Issuer shall also furnish to the Indenture Trustee
an Officer's Certificate certifying or stating the opinion of each person
signing such certificate as to the fair value (within 90 days prior to such
release) of the property or securities proposed to be released and stating that
in the opinion of such person the proposed release will not impair the security
under this Indenture in contravention of the provisions hereof.

         (d) Whenever the Issuer is required to furnish to the Indenture Trustee
an Officer's Certificate certifying or stating the opinion of any signer thereof
as to the matters described in clause (iii) above, the Issuer shall also furnish
to the Indenture Trustee an Independent Certificate as to the same matters if
the fair value of the property or securities and of all other property or
securities released from the lien of this Indenture since the commencement of
the then-current calendar year, as set forth in the certificates required by
clause (iii) above and this clause (iv), equals 10% or more of the Note
Principal Balances of the Notes, but such certificate need not be furnished in
the case of any release of property or securities if the fair value thereof as
set forth in the related Officer's Certificate is less than $25,000 or less than
one percent of the then outstanding Note Principal Balances of the Notes.

         Section 10.02 FORM OF DOCUMENTS DELIVERED TO INDENTURE TRUSTEE. In any
case where several matters are required to be certified by, or covered by an
opinion of, any specified Person, it is not necessary that all such matters be
certified by, or covered by the opinion of, only one such Person, or that they
be so certified or covered by only one document, but one such Person may certify
or give an opinion with respect to some matters and one or more other such
Persons as to other matters, and any such Person may certify or give an opinion
as to such matters in one or several documents.

         Any certificate or opinion of an Authorized Officer of the Issuer may
be based, insofar as it relates to legal matters, upon a certificate or opinion
of, or representations by, counsel, unless such officer knows, or in the
exercise of reasonable care should know, that the certificate or opinion or
representations with respect to the matters upon which his certificate or
opinion is based are erroneous. Any such certificate of an Authorized Officer or
Opinion of Counsel may be based, insofar as it relates to factual matters, upon
a certificate or opinion of, or representations by, an officer or officers of
the Seller or the Issuer, stating that the information with respect to such
factual matters is in the possession of the Seller or the Issuer, unless such
counsel knows, or in the exercise of reasonable care should know, that the
certificate or opinion or representations with respect to such matters are
erroneous.

         Where any Person is required to make, give or execute two or more
applications, requests, consents, certificates, statements, opinions or other
instruments under this Indenture, they may, but need not, be consolidated and
form one instrument.

         Whenever in this Indenture, in connection with any application or
certificate or report to the Indenture Trustee, it is provided that the Issuer
shall deliver any document as a condition of the granting of such application,
or as evidence of the Issuer's compliance with any term hereof, it is intended
that the truth and accuracy, at the time of the granting of such application or
at the effective date of such certificate or report (as the case may be), of the
facts and opinions stated in such document shall in such case be conditions
precedent to the right of the Issuer to have such application granted or to the
sufficiency of such certificate or report. The foregoing shall not, however, be
construed to affect the Indenture Trustee's right to rely upon the truth and
accuracy of any statement or opinion contained in any such document as provided
in Article VI.

         Section 10.03 ACTS OF NOTEHOLDERS.

         (a) Any request, demand, authorization, direction, notice, consent,
waiver or other action provided by this Indenture to be given or taken by
Noteholders may be embodied in and evidenced by one or more instruments of
substantially similar tenor signed by such Noteholders in person or by agents
duly appointed in writing; and except as herein otherwise expressly provided,
such action shall become effective when such instrument or instruments are
delivered to the Indenture Trustee, and, where it is hereby expressly required,
to the Issuer. Such instrument or instruments (and the action embodied therein
and evidenced thereby) are herein sometimes referred to as the "Act" of the
Noteholders 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 Indenture and (subject to Section 6.01 hereof)
conclusive in favor of the Indenture Trustee and the Issuer, if made in the
manner provided in this Section 10.03 hereof.

         (b) The fact and date of the execution by any person of any such
instrument or writing may be proved in any manner that the Indenture Trustee
deems sufficient.

         (c) The ownership of Notes shall be proved by the Note Registrar.

         (d) Any request, demand, authorization, direction, notice, consent,
waiver or other action by the Holder of any Notes shall bind the Holder of every
Note issued upon the registration thereof or in exchange therefor or in lieu
thereof, in respect of anything done, omitted or suffered to be done by the
Indenture Trustee or the Issuer in reliance thereon, whether or not notation of
such action is made upon such Note.

         Section 10.04 NOTICES ETC., TO INDENTURE TRUSTEE, ISSUER, SECURITIES
ADMINISTRATOR, NOTE INSURER, INSURER AND RATING AGENCIES. Any request, demand,
authorization, direction, notice, consent, waiver or act of Noteholders or other
documents provided or permitted by this Indenture shall be in writing and if
such request, demand, authorization, direction, notice, consent, waiver or act
of Noteholders is to be made upon, given or furnished to or filed with:

         (a) the Indenture Trustee by any Noteholder or by the Issuer shall be
sufficient for every purpose hereunder if made, given, furnished or filed in
writing to or with the Indenture Trustee at the Corporate Trust Office. All
notices to the Indenture Trustee shall be deemed effective only upon actual
receipt. The Indenture Trustee shall promptly transmit any material notice
received by it from the Noteholders to the Issuer and the Insurer; or

         (b) the Issuer by the Indenture Trustee or by any Noteholder shall be
sufficient for every purpose hereunder if made, given, furnished or filed in
writing and mailed first-class, postage prepaid to the Issuer addressed to:
American Home Mortgage Investment Trust 2005-2, in care of M&T Trust Company of
Delaware, City of Wilmington, County of New Castle, State of Delaware at 1220
North Market Street, Suite 202, Wilmington , DE 19801, or at any other address
previously furnished in writing to the Indenture Trustee by the Issuer. The
Issuer shall promptly transmit any notice received by it from the Noteholders to
the Indenture Trustee and the Insurer; or

         (c) the Securities Administrator by the Indenture Trustee, any
Noteholder or by the Issuer shall be sufficient if made, given, furnished or
filed in writing and mailed first-class, postage prepaid to the Securities
Administrator addressed to: P.O. Box 98, Columbia, MD 21046 or for overnight
deliveries, 9062 Old Annapolis Road, Columbia, MD, 21045, Attention: AHM 2005-2,
or at any other address previously furnished in writing to the Indenture Trustee
by the Securities Administrator. The Securities Administrator shall promptly
transmit any notice received by it from the Noteholders to the Indenture
Trustee, the Issuer and the Insurer; or

         (d) the Insurer by the Issuer, the Indenture Trustee or by any
Noteholders shall be sufficient for every purpose hereunder if in writing and
mailed first-class, postage prepaid, or personally delivered or telecopied to:
Financial Guaranty Insurance Company, 125 Park Avenue, New York, New York 10017,
Attention: Research and Risk Management and via electronic mail to
SFSurveillance@fgic.com. The Insurer shall promptly transmit any notice received
by it from the Issuer, the Indenture Trustee or the Noteholders to the Issuer or
Indenture Trustee as the case may be;

         (e) Notices required to be given to the Rating Agencies by the Issuer,
the Indenture Trustee or the Owner Trustee shall be in writing, mailed
first-class postage pre-paid, (i) to Standard & Poor's, at the following
address: Standard & Poor's, 55 Water Street, 41st Floor, New York, New York
10041, Attention of Asset Backed Surveillance Department; and (ii) to Moody's,
at the following address: Moody's Investors Service, Inc., 99 Church Street, New
York, New York 10007; or as to each of the foregoing, at such other address as
shall be designated by written notice to the other parties; or

         (f) the Note Insurer by the Issuer, the Indenture Trustee or by any
Noteholders shall be sufficient for every purpose hereunder if in writing and
mailed, first-class postage pre-paid, or personally delivered or telecopied to:
Ambac Assurance Corporation, One State Street Plaza, New York, New York 10004,
Attention: Consumer Asset-Backed Securities Group, Telephone: (212) 208-3394,
Telecopier: (212) 363-1459. The Note Insurer shall promptly transmit any notice
received by it from the Issuer, the Indenture Trustee or the Noteholders to the
Issuer or Indenture Trustee, as the case may be.

         Section 10.05 NOTICES TO NOTEHOLDERS; WAIVER. Where this Indenture
provides for notice to Noteholders of any event, such notice shall be
sufficiently given (unless otherwise herein expressly provided) if made, given,
furnished or filed in writing and mailed, first-class, postage prepaid to each
Noteholder affected by such event, at such Person's address as it appears on the
Note Register, not later than the latest date, and not earlier than the earliest
date, prescribed for the giving of such notice. In any case where notice to
Noteholders is given by mail, neither the failure to mail such notice nor any
defect in any notice so mailed to any particular Noteholder shall affect the
sufficiency of such notice with respect to other Noteholders, and any notice
that is mailed in the manner herein provided shall conclusively be presumed to
have been duly given regardless of whether such notice is in fact actually
received.

         Where this Indenture provides for notice in any manner, such notice may
be waived in writing by any Person entitled to receive such notice, either
before or after the event, and such waiver shall be the equivalent of such
notice. Waivers of notice by Noteholders shall be filed with the Indenture
Trustee but such filing shall not be a condition precedent to the validity of
any action taken in reliance upon such a waiver.

         In case, by reason of the suspension of regular mail service as a
result of a strike, work stoppage or similar activity, it shall be impractical
to mail notice of any event to Noteholders when such notice is required to be
given pursuant to any provision of this Indenture, then any manner of giving
such notice as shall be satisfactory to the Indenture Trustee shall be deemed to
be a sufficient giving of such notice.

         Where this Indenture provides for notice to the Rating Agencies,
failure to give such notice shall not affect any other rights or obligations
created hereunder, and shall not under any circumstance constitute an Event of
Default.

         Section 10.06 CONFLICT WITH TRUST INDENTURE ACT. If any provision
hereof limits, qualifies or conflicts with another provision hereof that is
required to be included in this Indenture by any of the provisions of the Trust
Indenture Act, such required provision shall control.

         The provisions of TIA ss.ss. 310 through 317 that impose duties on any
Person (including the provisions automatically deemed included herein unless
expressly excluded by this Indenture) are a part of and govern this Indenture,
whether or not physically contained herein.

         Section 10.07 EFFECT OF HEADINGS. The Article and Section headings
herein are for convenience only and shall not affect the construction hereof.

         Section 10.08 SUCCESSORS AND ASSIGNS. All covenants and agreements in
this Indenture and the Notes by the Issuer shall bind its successors and
assigns, whether so expressed or not. All agreements of the Indenture Trustee in
this Indenture shall bind its successors, co-trustees and agents.

         Section 10.09 SEPARABILITY. In case any provision in this Indenture or
in the Notes shall be invalid, illegal or unenforceable, the validity, legality,
and enforceability of the remaining provisions shall not in any way be affected
or impaired thereby.

         Section 10.10 BENEFITS OF INDENTURE. The Insurer and the Note Insurer
and its successors and assigns shall be a third-party beneficiary to the
provisions of this Indenture. To the extent that this Indenture confers upon or
gives or grants to the Insurer any right, remedy or claim under or by reason of
this Indenture, the Insurer and the Note Insurer may enforce any such right,
remedy or claim conferred, given or granted hereunder. Nothing in this Indenture
or in the, express or implied, shall give to any Person, other than the parties
hereto and their successors hereunder, and the Noteholders, the Note Insurer and
the Insurer, any benefit or any legal or equitable right, remedy or claim under
this Indenture.

         Section 10.11 LEGAL HOLIDAYS. In any case where the date on which any
payment is due shall not be a Business Day, then (notwithstanding any other
provision of the Notes or this Indenture) payment need not be made on such date,
but may be made on the next succeeding Business Day with the same force and
effect as if made on the date on which nominally due, and no interest shall
accrue for the period from and after any such nominal date.

         Section 10.12 GOVERNING LAW. THIS INDENTURE SHALL BE CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS
CONFLICT OF LAW PROVISIONS EXCEPT SECTIONS 5-1401 AND 5-1402 OF NEW YORK GENERAL
OBLIGATIONS LAWS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES
HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

         The parties to this Indenture each hereby irrevocably submits to the
non exclusive jurisdiction of any New York State or federal court sitting in the
Borough of Manhattan in The City of New York in any action or proceeding arising
out of or relating to the Notes, this Indenture or the transactions contemplated
hereby, and all such parties hereby irrevocably agree that all claims in respect
of such action or proceeding may be heard and determined in such New York State
or federal court and hereby irrevocably waive, to the fullest extent that they
may legally do so, the defense of an inconvenient forum to the maintenance of
such action or proceeding. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES,
TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY
JURY IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS INDENTURE,
THE NOTES OR THE TRANSACTIONS CONTEMPLATED HEREBY.

         Section 10.13 COUNTERPARTS. This Indenture may be executed in any
number of counterparts, each of which when so executed shall be deemed to be an
original, but all such counterparts shall together constitute but one and the
same instrument.

         Section 10.14 RECORDING OF INDENTURE. If this Indenture is subject to
recording in any appropriate public recording offices, such recording is to be
effected by the Issuer and at its expense accompanied by an Opinion of Counsel
at its expense (which may be counsel to the Indenture Trustee or any other
counsel reasonably acceptable to the Indenture Trustee) to the effect that such
recording is necessary either for the protection of the Noteholders or any other
Person secured hereunder or for the enforcement of any right or remedy granted
to the Indenture Trustee under this Indenture.

         Section 10.15 ISSUER OBLIGATION. No recourse may be taken, directly or
indirectly, with respect to the obligations of the Issuer, the Owner Trustee or
the Indenture Trustee on the Notes or under this Indenture or any certificate or
other writing delivered in connection herewith or therewith, against (i) the
Indenture Trustee or the Owner Trustee in its individual capacity, (ii) any
owner of a beneficial interest in the Issuer or (iii) any partner, owner,
beneficiary, agent, officer, director, employee or agent of the Indenture
Trustee or the Owner Trustee in its individual capacity, any holder of a
beneficial interest in the Issuer, the Owner Trustee or the Indenture Trustee or
of any successor or assign of the Indenture Trustee or the Owner Trustee in its
individual capacity, except as any such Person may have expressly agreed (it
being understood that the Indenture Trustee and the Owner Trustee have no such
obligations in their individual capacity) and except that any such partner,
owner or beneficiary shall be fully liable, to the extent provided by applicable
law, for any unpaid consideration for stock, unpaid capital contribution or
failure to pay any installment or call owing to such entity. For all purposes of
this Indenture, in the performance of any duties or obligations of the Issuer
hereunder, the Owner Trustee shall be subject to, and entitled to the benefits
of, the terms and provisions of Article VI, VII and VIII of the Trust Agreement.

         Section 10.16 NO PETITION. The Indenture Trustee, by entering into this
Indenture, and each Noteholder, by accepting a Note, hereby covenant and agree
that they will not at any time prior to one year from the date of termination
hereof, institute against the Depositor or the Issuer, or join in any
institution against the Depositor or the Issuer of, any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceedings, or other
proceedings under any United States federal or state bankruptcy or similar law
in connection with any obligations relating to the Notes, this Indenture or any
of the Basic Documents, provided, however, that nothing herein shall prohibit
the Indenture Trustee from filing proofs of claim.

         Section 10.17 INSPECTION. The Issuer agrees that, at its expense, on
reasonable prior notice, it shall permit any representative of the Indenture
Trustee, the Note Insurer and the Insurer, during the Issuer's normal business
hours, to examine all the books of account, records, reports and other papers of
the Issuer, to make copies and extracts therefrom, to cause such books to be
audited by Independent certified public accountants, and to discuss the Issuer's
affairs, finances and accounts with the Issuer's officers, employees, and
Independent certified public accountants, all at such reasonable times and as
often as may be reasonably requested. The Indenture Trustee, the Note Insurer
and the Insurer shall cause its representatives to hold in confidence all such
information except to the extent disclosure may be required by law, regulation,
administrative or regulatory authority (and all reasonable applications for
confidential treatment are unavailing) and except to the extent that the
Indenture Trustee, the Note Insurer or the Insurer may reasonably determine that
such disclosure is consistent with its obligations hereunder, provided, however,
that the Indenture Trustee may disclose such information, on a confidential
basis, to its agents, attorneys and auditors in connection with the performance
of its responsibilities under this Indenture.

<PAGE>

                                   ARTICLE XI

                   CERTAIN MATTERS REGARDING THE NOTE INSURER

         Section 11.01 RIGHTS OF THE NOTE INSURER TO EXERCISE THE RIGHTS OF THE
CLASS V-A-4 D NOTES. By accepting its Note, each Class V-A-4-D Noteholder agrees
that unless an Note Insurer Default exists, the Note Insurer shall have the
right to exercise all consent, voting, direction and other control rights of the
Class V-A-4-D Noteholders under this Indenture without any further consent of
the Class V-A-4-D Noteholders.

         Section 11.02 CLAIMS UPON THE NOTE INSURANCE POLICY; INSURANCE ACCOUNT.

         (a) If the Securities Administrator determines that (i) the funds that
will be on deposit in the Securities Administrator Collection Account on the
third Business Day prior to the related Payment Date, to the extent payable to
the Class V-A-4-D Noteholders pursuant to Section 3.06, are insufficient to pay
the Accrued Bond Interest on the Class V-A-4-D Notes for such Payment Date, net
of any Prepayment Interest Shortfalls, Relief Act Shortfalls, any interest
shortfalls during the Funding Period caused by limited interest earnings on the
Group V Pre-Funding Account or Net WAC Shortfalls allocated to the Class V-A-4-D
Notes or (ii) the funds available in connection with an optional redemption of
the Notes pursuant to Section 8.07 or on the Final Scheduled Payment Date will
be insufficient to reduce the Note Principal Balance of the Class V-A-4-D Notes
to zero, the Securities Administrator shall give notice by telephone or telecopy
of the aggregate amount of such deficiency, confirmed in writing in the form set
forth as Exhibit A to the endorsement of the Note Insurance Policy, to the Note
Insurer at or before 12:00 noon, New York City time, on the Business Day prior
to such Payment Date. If, subsequent to such notice, and prior to payment by the
Note Insurer pursuant to such notice, additional amounts are deposited in the
Securities Administrator Collection Account, the Securities Administrator shall
reasonably promptly notify the Note Insurer and the Indenture Trustee and
withdraw the notice or reduce the amount claimed, as appropriate.

         (b) The Indenture Trustee shall establish a separate special purpose
non-interest bearing trust account for the benefit of Holders of the Class
V-A-4-D Notes and the Note Insurer referred to herein as the "Insurance Account"
over which the Indenture Trustee shall have exclusive control and sole right of
withdrawal. The Indenture Trustee shall deposit any amount paid to it under the
Note Insurance Policy in the Insurance Account and distribute such amount only
for purposes of payment to Holders of Class V-A-4-D Notes of the Class V-A-4-D
Insured Amount for which a claim was made. Such amount may not be applied to
satisfy any costs, expenses or liabilities of the Securities Administrator, the
Indenture Trustee or the Trust Estate. Amounts paid under the Note Insurance
Policy shall be transferred to the Payment Account in accordance with the next
succeeding paragraph and disbursed by the Indenture Trustee to Holders of Class
V-A-4-D Notes in accordance with Section 3.06 or Section 8.04, as applicable. It
shall not be necessary for such payments to be made by checks or wire transfers
separate from the checks or wire transfers used to pay the Class V-A-4-D Insured
Amount with other funds available to make such payment. However, the amount of
any payment of principal of or interest on the Class V-A-4-D Notes to be paid
from funds transferred from the Insurance Account shall be noted as provided in
paragraph (c) below and in the statement to be furnished to Holders of the Notes
and Certificates pursuant to Section 7.05. Funds held in the Insurance Account
shall be held uninvested by the Indenture Trustee.

         On any Payment Date with respect to which a claim has been made under
the Note Insurance Policy, the amount of any funds received by the Indenture
Trustee as a result of any claim under the Note Insurance Policy, to the extent
required to pay the Class V-A-4-D Insured Amount on such Payment Date, shall be
withdrawn by the Indenture Trustee from the Insurance Account and deposited in
the Payment Account and applied by the Indenture Trustee, together with the
other funds to be distributed to the Class V-A-4-D Noteholders pursuant to
Section 3.06, directly to the payment in full of the Insured Amount due on the
Class V-A-4-D Notes. Any funds remaining in the Insurance Account on the first
Business Day following a Payment Date shall be remitted by the Indenture Trustee
to the Note Insurer, pursuant to the written instructions of the Note Insurer,
by the end of such Business Day.

         (c) The Indenture Trustee shall keep a complete and accurate record of
the amount of interest and principal paid into the Insurance Account in respect
of any Class V-A-4-D Notes from moneys received by the Indenture Trustee under
the Note Insurance Policy. The Note Insurer shall have the right to inspect such
records at reasonable times during normal business hours upon two Business Day's
prior written notice to the Indenture Trustee.

         Section 11.03 EFFECT OF PAYMENTS BY THE NOTE INSURER; SUBROGATION.
Anything herein to the contrary notwithstanding, for purposes of this Section
11.03, any payment with respect to principal of or interest on the Class V-A-4-D
Notes which is made with monies received pursuant to the terms of the Note
Insurance Policy shall not be considered payment of the Class V-A-4-D Notes from
the Trust Estate. The Securities Administrator and the Indenture Trustee
acknowledge, and each Holder by its acceptance of a Class V-A-4-D Note agrees,
that without the need for any further action on the part of the Note Insurer,
the Securities Administrator, the Indenture Trustee or the Certificate
Registrar, to the extent the Note Insurer makes payments, directly or
indirectly, on account of principal of or interest on the Class V-A-4-D Notes to
the Holders of such Notes, the Note Insurer will be fully subrogated to, and
each Class V-A-4-D Noteholder and the Indenture Trustee hereby delegate and
assign to the Note Insurer, to the fullest extent permitted by law, the rights
of such Holders to receive such principal and interest from the Trust Estate;
provided that the Note Insurer shall be paid such amounts only from the sources
and in the manner explicitly provided for herein.

           The Indenture Trustee and the Securities Administrator shall
cooperate in all respects with any reasonable request by the Note Insurer for
action to preserve or enforce the Note Insurer's rights or interests under this
Indenture without limiting the rights or affecting the interests of the Holders
as otherwise set forth herein.

         Section 11.04 NOTICES AND INFORMATION TO THE NOTE INSURER. All notices,
statements, reports, certificates or opinions required by this Indenture to be
sent or made available to any other party hereto or to the Noteholders or
Certificateholders shall also be sent or made available to the Note Insurer.

         Section 11.05 TRUSTEE TO HOLD NOTE INSURANCE POLICY. The Indenture
Trustee will hold the Note Insurance Policy in trust as agent for the Class
V-A-4-D Noteholders for the purpose of making claims thereon and distributing
the proceeds thereof. Neither the Note Insurance Policy, nor the amounts paid on
the Note Insurance Policy will constitute part of the Trust Estate. Each Class
V-A-4-D Noteholder, by accepting its Note, appoints the Indenture Trustee as
attorney-in-fact for the purpose of making claims on the Note Insurance Policy.
The Indenture Trustee shall surrender the Note Insurance Policy to the Note
Insurer for cancellation upon the expiration of the term of the Note Insurance
Policy as provided in the Note Insurance Policy following the retirement of the
Class V-A-4-D Notes.

<PAGE>

         IN WITNESS WHEREOF, the Issuer, the Securities Administrator and the
Indenture Trustee 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.

                                            AMERICAN HOME MORTGAGE INVESTMENT
                                            TRUST 2005-2, as Issuer M&T Trust
                                            Company of Delaware, not in its
                                            individual capacity but solely as
                                            Owner Trustee

                                            By: /s/ Robert D. Brown
                                                --------------------------------
                                            Name:   Robert D. Brown
                                            Title:  Vice President

                                            WELLS FARGO BANK, N.A., as
                                            Securities Administrator

                                            By: /s/ Peter A. Gobell
                                                --------------------------------
                                            Name:   Peter A. Gobell
                                            Title:  Vice President

                                            DEUTSCHE BANK, NATIONAL TRUST
                                            COMPANY, not in its individual
                                            capacity but solely as Indenture
                                            Trustee

                                            By: /s/ Nicholas Gisler
                                                --------------------------------
                                            Name:   Nicholas Gisler
                                            Title:  Associate

                                            By: /s/ Ronaldo Reyes
                                                --------------------------------
                                            Name:   Ronaldo Reyes
                                            Title:  Vice President

<PAGE>

STATE OF _____________  )
                        ) ss.:
COUNTY OF ____________  )

         On this _____ day of June, 2005, before me personally appeared
_____________________ to me known, who being by me duly sworn, did depose and
say, that he is the ___________________ of the Indenture Trustee, one of the
corporations described in and which executed the above instrument; and that he
signed his name thereto by like order.

                                                     Notary Public

                                                     NOTARY PUBLIC

[NOTARIAL SEAL]

<PAGE>

STATE OF _____________  )
                        ) ss.:
COUNTY OF ____________  )

         On this _____ day of June, 2005, before me personally appeared
_____________________ to me known, who being by me duly sworn, did depose and
say, that he is the ___________________ of the Securities Administrator, one of
the corporations described in and which executed the above instrument; and that
he signed his name thereto by like order.

                                                        Notary Public

                                                        NOTARY PUBLIC

[NOTARIAL SEAL]

<PAGE>

STATE OF _____________  )
                        ) ss.:
COUNTY OF ____________  )

         On this ____ day of June, 2005, before me personally appeared
____________________ to me known, who being by me duly sworn, did depose and
say, that she is a(n) ________________ of the Owner Trustee, one of the entities
described in and which executed the above instrument; and that she signed her
name thereto by like order.

                                                        Notary Public

                                                        NOTARY PUBLIC

[NOTARIAL SEAL]

<PAGE>

                                   EXHIBIT A-1

                              CLASS [__-A-__] NOTES

UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE INDENTURE TRUSTEE OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY NOTE ISSUED IS
REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO
SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.

THE HOLDER OF THIS NOTE OR BENEFICIAL OWNER OF ANY INTEREST HEREIN WILL BE
DEEMED TO REPRESENT TO ONE OF THE REPRESENTATIONS CONTAINED IN SECTION 4.15 OF
THE INDENTURE.

THIS NOTE IS A NON-RECOURSE OBLIGATION OF THE ISSUER, AND IS LIMITED IN RIGHT OF
PAYMENT TO AMOUNTS AVAILABLE FROM THE TRUST ESTATE AS PROVIDED IN THE INDENTURE
REFERRED TO BELOW. THE ISSUER IS NOT OTHERWISE PERSONALLY LIABLE FOR PAYMENTS ON
THIS NOTE.

PRINCIPAL OF THIS NOTE IS PAYABLE OVER TIME AS SET FORTH HEREIN. ACCORDINGLY,
THE OUTSTANDING PRINCIPAL OF THIS NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT
SHOWN ON THE FACE HEREOF.

<PAGE>

                 AMERICAN HOME MORTGAGE INVESTMENT TRUST 2005-2
                      MORTGAGE-BACKED NOTES, SERIES 2005-2
                                 CLASS [__-A-__]

AGGREGATE NOTE PRINCIPAL                            NOTE INTEREST
BALANCE: $[________________]                        RATE: [Adjustable Rate][__%]

INITIAL NOTE PRINCIPAL                              NOTE NO.  1
BALANCE OF THIS NOTE: $[_____________]

PERCENTAGE INTEREST: 100%                           CUSIP NO: [_______________]

                  American Home Mortgage Investment Trust 2005-2 (the "Issuer"),
a Delaware statutory trust, for value received, hereby promises to pay to
[____________]. or registered assigns, the principal sum of
$[____________________] in monthly installments on the twenty-fifth day of each
month or, if such day is not a Business Day, the next succeeding Business Day
(each a "Payment Date"), commencing in July 2005 and ending on or before the
Payment Date occurring in _____________ (the "Final Scheduled Payment Date") and
to pay interest on the Note Principal Balance of this Note (this "Note")
outstanding from time to time as provided below.

         This Note is one of a duly authorized issue of the Issuer's
Mortgage-Backed Notes, Series 2005-2 (the "Notes"), issued under an Indenture
dated as of June 22, 2005 (the "Indenture"), between the Issuer, Deutsche Bank
National Trust Company, as indenture trustee (the "Indenture Trustee") and Wells
Fargo Bank, N.A., as securities administrator (the "Securities Administrator")
to which Indenture and all indentures supplemental thereto reference is hereby
made for a statement of the respective rights thereunder of the Issuer, the
Indenture Trustee, the Securities Administrator and the Holders of the Notes and
the terms upon which the Notes are to be authenticated and delivered. All terms
used in this Note which are defined in the Indenture shall have the meanings
assigned to them in the Indenture.

         Payments of principal and interest on this Note will be made on each
Payment Date to the Noteholder of record as of the related Record Date. The
"Note Principal Balance" of a Note as of any date of determination is equal to
the initial Note Principal Balance thereof, reduced by the aggregate of all
amounts previously paid with respect to such Note on account of principal [and
reduced by the aggregate amount of cumulative Realized Losses allocated to such
Note on all prior Payment Dates, and increased by any Subsequent Recoveries
allocated to such Note.]

         [Financial Guaranty Insurance Company (the "Insurer"), in consideration
of the payment of the premium and subject to the terms of the note guaranty
insurance policy (the "Insurance Policy") issued thereby, has unconditionally
and irrevocably guaranteed the payment of an amount equal to the Insured Payment
with respect to the Class VI-A Notes with respect to each Payment Date.]

[Ambac Assurance Corporation (the "Note Insurer"), in consideration of the
payment of the premium and subject to the terms of the certificate guaranty
insurance policy (the "Note Insurance Policy") issued thereby, has
unconditionally and irrevocably guaranteed the payment of the Class V-A-4-D
Insured Amount with respect to the Class V-A-4-D Notes with respect to each
Payment Date. Such Note Insurance Policy will not cover any Prepayment Interest
Shortfalls, Relief Act Shortfalls, any interest shortfalls during the Funding
Period caused by limited interest earnings on the Group V Pre-Funding Account or
Net WAC Shortfall Carry-Forward Amount.]

         [Pursuant to the Indenture, unless a Note Insurer Default (as defined
in the Indenture) exists (i) the Note Insurer shall be deemed to be the holder
of the Class V-A-4-D Notes for certain purposes specified in the Indenture
(other than with respect to payment on the Class V-A-4-D Notes), and will be
entitled to exercise all rights of the Notedholders thereunder, including the
rights of Noteholders relating to the occurrence of, and the remedies with
respect to, an Event of Default, without the consent of such Noteholders, and
(ii) the Indenture Trustee may take actions which would otherwise be at its
option or within its discretion, including actions relating to the occurrence
of, and the remedies with respect to, an Event of Default, only at the
direction, or with the consent, of the Note Insurer.]

         The principal of, and interest on, this Note are due and payable as
described in the Indenture, in such coin or currency of the United States of
America as at the time of payment is legal tender for payment of public and
private debts. All payments made by the Issuer with respect to this Note shall
be equal to this Note's pro rata share of the aggregate payments on all Class
[__-A-__] Notes as described above, and shall be applied as between interest and
principal as provided in the Indenture.

         All principal and interest accrued on the Notes, if not previously
paid, will become finally due and payable at the Final Scheduled Payment Date.

         [The Majority Certificateholder shall have the option to purchase the
assets of the Trust related to Loan Group I, Loan Group II-C, Group II-NC, Loan
Group III, Loan Group IV and Loan Group V and thereby redeem the Class I-A,
Class II-A, Class III-A, Class IV-A, Class V-A, Class M, Class B, Class V-M,
Class V-B and Class N Notes on or after the Payment Date on which the Stated
Principal Balance of the related Mortgage Loans, and properties acquired in
respect thereof has been reduced to less than 10% of the sum of the Group I,
Group II-C, Group II-NC, Group III, Group IV and Group V Cut-off Date Balance;
provided, however, that no such redemption shall occur unless (i) the Note
Insurer is reimbursed for all payments made by the Note Insurer under the Note
Insurance Policy with respect to the Class V-A-4-D Notes, including interest
thereon, to the extent not previously paid or reimbursed and (ii) the Note
Insurer is reimbursed for any payments made by the Note Insurer under the Note
Insurance Policy with respect to the Class V-A-4-D Notes, including interest
thereon, as a result of such redemption.] [The Majority Certificateholder shall
have the option to purchase the assets of the Trust related to Loan Group I,
Loan Group II-C, Group II-NC, Loan Group III and Loan Group IV and thereby
redeem the Class I-A, Class II-A, Class III-A, Class IV-A, Class M, Class B and
Class N Notes on or after the Payment Date on which the Stated Principal Balance
of the Mortgage Loans, and properties acquired in respect thereof has been
reduced to less than 10% of the sum of the Group I, Group II-C, Group II-NC,
Group III and Group IV Cut-off Date Balance; provided, however, that no such
redemption shall occur unless (i) the Note Insurer is reimbursed for all
payments made by the Note Insurer under the Note Insurance Policy with respect
to the Class V-A-4-D Notes, including interest thereon, to the extent not
previously paid or reimbursed and (ii) the Note Insurer is reimbursed for any
payments made by the Note Insurer under the Note Insurance Policy with respect
to the Class V-A-4-D Notes, including interest thereon, as a result of such
redemption; and provided, further, that no such optional termination may be
exercised unless an opinion has been rendered by nationally recognized tax
counsel that such optional termination will not adversely affect the
characterization as indebtedness of any class of Notes currently outstanding.]
[The Majority Certificateholder shall have the option to purchase the assets of
the Trust related to Loan Group V and thereby redeem the Class V-A, Class V-M,
Class V-B and Class N Notes on or after the Payment Date on which the Stated
Principal Balance of the related Mortgage Loans, and properties acquired in
respect thereof has been reduced to less than 10% of the Group V Cut-off Date
Balance; provided, however, that no such redemption shall occur unless (i) the
Note Insurer is reimbursed for all payments made by the Note Insurer under the
Note Insurance Policy with respect to the Class V-A-4-D Notes, including
interest thereon, to the extent not previously paid or reimbursed and (ii) the
Note Insurer is reimbursed for any payments made by the Note Insurer under the
Note Insurance Policy with respect to the Class V-A-4-D Notes, including
interest thereon, as a result of such redemption; and provided, further, that no
such optional termination may be exercised unless an opinion has been rendered
by nationally recognized tax counsel that such optional termination will not
adversely affect the characterization as indebtedness of any class of Notes
currently outstanding.] [The Majority Certificateholder shall have the option to
purchase the HELOC Mortgage Loans and thereby redeem the Class VI-A Notes on any
Payment Date on or after the Payment Date on which the Note Principal Balance of
the Class VI-A Notes declines to 10% or less of the Note Principal Balance of
the Class VI-A Notes on the Closing Date. If the Majority Certificateholder
fails to exercise this right, the Insurer may purchase the HELOC Mortgage Loans
60 days after the Payment Date on which the Note Principal Balance of the Class
VI-A Notes declines to 10% or less of the Note Principal Balance of the Class
VI-A Notes on the Closing Date.]

         The Issuer shall not be liable upon the indebtedness evidenced by the
Notes except to the extent of amounts available from the Trust Estate which
constitutes security for the payment of the Notes. The assets included in the
Trust Estate will be the sole source of payments on the Class [__-A-__] Notes,
and each Holder hereof, by its acceptance of this Note, agrees that (i) such
Note will be limited in right of payment to amounts available from the Trust
Estate as provided in the Indenture and (ii) such Holder shall have no recourse
to the Issuer, the Owner Trustee, the Indenture Trustee, the Depositor, the
Seller, the Securities Administrator, the RMBS Master Servicer, any Servicer or
any of their respective affiliates, or to the assets of any of the foregoing
entities, except the assets of the Issuer pledged to secure the Class [__-A-__]
Notes pursuant to the Indenture and the rights conveyed to the Issuer under the
Indenture.

         Any payment of principal or interest payable on this Note which is
punctually paid on the applicable Payment Date shall be paid to the Person in
whose name such Note is registered at the close of business on the Record Date
for such Payment Date by check mailed to such person's address as it appears in
the Note Register on such Record Date, except for the final installment of
principal and interest payable with respect to such Note, which shall be payable
as provided below. Notwithstanding the foregoing, upon written request with
appropriate instructions by the Holder of this Note delivered to the Indenture
Trustee at least five Business Days prior to the Record Date, any payment of
principal or interest, other than the final installment of principal or
interest, shall be made by wire transfer to an account in the United States
designated by such Holder. All reductions in the principal amount of a Note
effected by payments of principal made on any Payment Date shall be binding upon
all Holders of this Note and of any Note issued upon the registration of
transfer thereof or in exchange therefor or in lieu thereof, whether or not such
payment is noted on such Note. The final payment of this Note shall be payable
upon presentation and surrender thereof on or after the Payment Date thereof at
the office or agency designated by the Indenture Trustee and maintained by it
for such purpose pursuant to Section 3.02 of the Indenture.

         Subject to the foregoing provisions, each Note delivered under the
Indenture, upon registration of transfer of or in exchange for or in lieu of any
other Note, shall carry the right to unpaid principal and interest that were
carried by such other Note.

         If an Event of Default as defined in the Indenture shall occur and be
continuing with respect to the Notes, the Notes may become or be declared due
and payable in the manner and with the effect provided in the Indenture. If any
such acceleration of maturity occurs prior to the payment of the entire unpaid
Note Principal Balance of the Notes, the amount payable to the Holder of this
Note will be equal to the sum of the unpaid Note Principal Balance of this Note,
together with accrued and unpaid interest thereon as described in the Indenture.
The Indenture provides that, notwithstanding the acceleration of the maturity of
the Notes, under certain circumstances specified therein, all amounts collected
as proceeds of the Trust Estate securing the Notes or otherwise shall continue
to be applied to payments of principal of and interest on the Notes as if they
had not been declared due and payable.

         The failure to pay any Unpaid Interest Shortfall at any time when funds
are not available to make such payment as provided in the Indenture shall not
constitute an Event of Default under the Indenture.

         The Holder of this Note or Beneficial Owner of any interest herein is
deemed to represent that either (1) it is not acquiring the Note with Plan
Assets or (2) (A) the acquisition, holding and transfer of a Note will not give
rise to a nonexempt prohibited transaction under Section 406 of ERISA or Section
4975 of the Code and (B) the Notes are rated investment grade or better and such
person believes that the Notes are properly treated as indebtedness without
substantial equity features for purposes of the DOL Regulations, and agrees to
so treat the Notes. Alternatively, regardless of the rating of the Notes, such
person may provide the Indenture Trustee and the Owner Trustee with an opinion
of counsel, which opinion of counsel will not be at the expense of the Issuer,
the Seller, any Underwriter, the Owner Trustee, the Indenture Trustee, the
Securities Administrator, the RMBS Master Servicer or any servicer, which opines
that the acquisition, holding and transfer of such Note or interest therein is
permissible under applicable law, will not constitute or result in a non-exempt
prohibited transaction under ERISA or Section 4975 of the Code and will not
subject the Issuer, the Seller, the Depositor, any Underwriter, the Owner
Trustee, the Indenture Trustee, the Securities Administrator, the RMBS Master
Servicer or any servicer to any obligation in addition to those undertaken in
the Indenture.

         As provided in the Indenture and subject to certain limitations therein
set forth, the transfer of this Note may be registered on the Note Register of
the Issuer. Upon surrender for registration of transfer of, or presentation of a
written instrument of transfer for, this Note at the office or agency designated
by the Issuer pursuant to the Indenture, accompanied by proper instruments of
assignment in form satisfactory to the Indenture Trustee, one or more new Notes
of any authorized denominations and of a like aggregate then outstanding Note
Principal Balance, will be issued to the designated transferee or transferees.

         Prior to the due presentment for registration of transfer of this Note,
the Issuer, the Indenture Trustee and any agent of the Issuer or the Indenture
Trustee may treat the Person in whose name this Note is registered as the owner
of such Note (i) on the applicable Record Date for the purpose of making
payments and interest of such Note, and (ii) on any other date for all other
purposes whatsoever, as the owner hereof, whether or not this Note be overdue,
and neither the Issuer, the Indenture Trustee nor any such agent of the Issuer
or the Indenture Trustee shall be affected by notice to the contrary.

         The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Issuer and the rights of the Holders of the Notes under the Indenture at any
time by the Issuer and the Holders of a majority of each Class of Notes affected
thereby. The Indenture also contains provisions permitting the Holders of Notes
representing not less than a majority of the aggregate Note Principal Balance of
the Notes, to waive any past Event of Default and its consequences except an
Event of Default (a) with respect to payment of principal of or interest on any
of the Notes, or (b) in respect of a covenant or provision of the Indenture
which cannot be modified or amended without the consent of the Holder of each
Note. Any such waiver by the Holder, at the time of the giving thereof, of this
Note (or any one or more predecessor Notes) shall bind the Holder of every Note
issued upon the registration of transfer hereof or in exchange hereof or in lieu
hereof, whether or not notation of such consent or waiver is made upon such
Note. The Indenture also permits the Issuer and the Indenture Trustee, following
prior notice to the Rating Agencies, to amend or waive certain terms and
conditions set forth in the Indenture without the consent of the Holders of the
Notes issued thereunder.

         Initially, the Notes will be registered in the name of Cede & Co. as
nominee of DTC, acting in its capacity as the Depository for the Notes. The
Notes will be delivered by the clearing agency in denominations as provided in
the Indenture and subject to certain limitations therein set forth. The Notes
are exchangeable for a like aggregate then outstanding Note Principal Balance of
Notes of different authorized denominations, as requested by the Holder
surrendering same.

         Unless the Certificate of Authentication hereon has been executed by
the Indenture Trustee by manual signature, this Note shall not be entitled to
any benefit under the Indenture, or be valid or obligatory for any purpose.

         Anything herein to the contrary notwithstanding, except as expressly
provided in the Basic Documents, neither the Owner Trustee in its individual
capacity, nor any of its respective partners, beneficiaries, agents, officers,
directors, employees, or successors or assigns, shall be personally liable for,
nor shall recourse be had to any of them for, the payment of principal of or
interest on, or performance of, or omission to perform, any of the covenants,
obligations or indemnifications contained in this Note, it being expressly
understood that said covenants, obligations and indemnifications have been made
solely by the Trust to the extent of the assets of the Trust. The holder of this
Note by the acceptance hereof agrees that, except as expressly provided in the
Basic Documents, the Holder shall have no claim against any of the foregoing for
any deficiency, loss or claim therefrom; provided, however, that nothing
contained herein shall be taken to prevent recourse to, and enforcement against,
the assets of the Trust Estate for any and all liabilities, obligations and
undertakings contained in this Note.

         AS PROVIDED IN THE INDENTURE, THIS NOTE AND THE INDENTURE CREATING THIS
NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH, AND GOVERNED BY, THE LAWS OF THE
STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED THEREIN.

<PAGE>

         IN WITNESS WHEREOF, the Issuer has caused this instrument to be duly
executed by M&T Trust Company of Delaware, not in its individual capacity but
solely as Owner Trustee.

Dated: June 22, 2005

                                              AMERICAN HOME MORTGAGE
                                              INVESTMENT TRUST 2005-2

                                              BY: M&T TRUST COMPANY OF DELAWARE,
                                                  not in its individual capacity
                                                  but solely in its capacity as
                                                  Owner Trustee

                                              By:
                                                  ------------------------------
                                                  Authorized Signatory

                INDENTURE TRUSTEE'S CERTIFICATE OF AUTHENTICATION

This is one of the Class [__-A-__] Notes referred to in the within-mentioned
Indenture.

DEUTSCHE BANK NATIONAL TRUST COMPANY, as Indenture Trustee

By:
    ------------------------
    Authorized Signatory

<PAGE>

                                  ABBREVIATIONS

         The following abbreviations, when used in the inscription on the face
of the Note, shall be construed as though they were written out in full
according to applicable laws or regulations:

           TEN COM       --  as tenants in common
           TEN ENT       --  as tenants by the entireties
           JT TEN        --  as joint tenants with right of survivorship and not
                             as tenants in common
      UNIF GIFT MIN ACT  --  __________ Custodian ______________________________
                               (Cust)                          (Minor)

                             under Uniform Gifts to Minor Act __________________
                                                                    (State)

ADDITIONAL ABBREVIATIONS MAY ALSO BE USED THOUGH NOT IN THE ABOVE LIST.

<PAGE>

                                   ASSIGNMENT

          FOR VALUE RECEIVED, THE UNDERSIGNED HEREBY SELLS, ASSIGNS AND
                                 TRANSFERS UNTO

          PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF
                                    ASSIGNEE:

  (PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS, INCLUDING ZIP CODE, OF ASSIGNEE)

_____________________________________________________________________________
the within Note and all rights thereunder, and hereby irrevocably constitutes
and appoints ________________________ attorney to transfer said Note on the
books kept for registration thereof, with full power of substitution in the
premises.

Dated: _____________________       _____________________________________________

Signature Guaranteed by _____________________________________________

         NOTICE: The signature(s) to this assignment must correspond with the
name as it appears upon the face of the within Note in every particular, without
alteration or enlargement or any change whatsoever. Signature(s) must be
guaranteed by a commercial bank or by a member firm of the New York Stock
Exchange or another national securities exchange. Notarized or witnessed
signatures are not acceptable.

<PAGE>

                                   EXHIBIT A-2
                             CLASS [[__-]M-__] NOTES

THIS NOTE IS SUBORDINATED IN RIGHT OF PAYMENT TO THE CLASS [__A-__] NOTES AND
[CLASS [[__-]M-__]] NOTES AS DESCRIBED IN THE INDENTURE.

[UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE INDENTURE TRUSTEE OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY NOTE ISSUED IS
REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO
SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.]

THE HOLDER OF THIS NOTE OR BENEFICIAL OWNER OF ANY INTEREST HEREIN WILL BE
DEEMED TO REPRESENT TO ONE OF THE REPRESENTATIONS CONTAINED IN SECTION 4.15 OF
THE INDENTURE.

THIS NOTE IS A NON-RECOURSE OBLIGATION OF THE ISSUER, AND IS LIMITED IN RIGHT OF
PAYMENT TO AMOUNTS AVAILABLE FROM THE TRUST ESTATE AS PROVIDED IN THE INDENTURE
REFERRED TO BELOW. THE ISSUER IS NOT OTHERWISE PERSONALLY LIABLE FOR PAYMENTS ON
THIS NOTE.

PRINCIPAL OF THIS NOTE IS PAYABLE OVER TIME AS SET FORTH HEREIN. ACCORDINGLY,
THE OUTSTANDING PRINCIPAL OF THIS NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT
SHOWN ON THE FACE HEREOF.

[NO TRANSFER OF THIS NOTE SHALL BE MADE UNLESS THE NOTE REGISTRAR SHALL HAVE
RECEIVED A CERTIFICATE OF NON-FOREIGN STATUS CERTIFYING AS TO THE TRANSFEREE'S
STATUS AS A U.S. PERSON OR CORPORATION UNDER U.S. LAW.

NO TRANSFER OF THIS NOTE SHALL BE MADE UNLESS THE NOTE REGISTRAR HAS RECEIVED
PROOF OF THE TRANSFEREE'S STATUS AS A REIT OR AS A QUALIFIED REIT SUBSIDIARY,
WITHIN THE MEANING OF SECTION 856(a) OR SECTION 856(i) OF THE CODE,
RESPECTIVELY.

THIS NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE RESOLD OR
TRANSFERRED UNLESS IT IS REGISTERED PURSUANT TO SUCH ACT AND LAWS OR IS SOLD OR
TRANSFERRED IN TRANSACTIONS WHICH ARE EXEMPT FROM REGISTRATION UNDER SUCH ACT
AND UNDER APPLICABLE STATE LAW AND IS TRANSFERRED IN ACCORDANCE WITH THE
PROVISIONS OF SECTION 3.05 OF THE TRUST AGREEMENT REFERRED TO HEREIN.

NO TRANSFER OF THIS NOTE SHALL BE MADE UNLESS THE NOTE REGISTRAR SHALL HAVE
RECEIVED EITHER (i) A REPRESENTATION LETTER FROM THE TRANSFEREE OF THIS NOTE TO
THE EFFECT THAT SUCH TRANSFEREE IS NOT AN EMPLOYEE BENEFIT PLAN OR OTHER PLAN
SUBJECT TO THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED
("ERISA"), OR SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE
"CODE"), OR A PERSON ACTING ON BEHALF OF ANY SUCH PLAN OR USING THE ASSETS OF
ANY SUCH PLAN, OR (ii) IF THIS NOTE IS PRESENTED FOR REGISTRATION IN THE NAME OF
A PLAN SUBJECT TO ERISA OR SECTION 4975 OF THE CODE (OR COMPARABLE PROVISIONS OF
ANY SUBSEQUENT ENACTMENTS), OR A TRUSTEE OF ANY SUCH PLAN, OR ANY OTHER PERSON
WHO IS USING THE ASSETS OF ANY SUCH PLAN TO EFFECT SUCH ACQUISITION, AN OPINION
OF COUNSEL TO THE EFFECT THAT THE PURCHASE OF NOTES, OPERATION OF TRUST AND
MANAGEMENT OF TRUST ASSETS ARE PERMISSIBLE UNDER APPLICABLE LAW, WILL NOT
CONSTITUTE OR RESULT IN ANY PROHIBITED TRANSACTION UNDER ERISA OR SECTION 4975
OF THE CODE AND WILL NOT SUBJECT THE DEPOSITOR, THE SELLER, THE OWNER TRUSTEE,
THE INDENTURE TRUSTEE, THE NOTE REGISTRAR, THE SECURITIES ADMINISTRATOR, THE
RMBS MASTER SERVICER, THE HELOC BACK-UP SERVICER, THE RMBS SERVICER OR THE HELOC
SERVICER TO ANY OBLIGATION OR LIABILITY (INCLUDING OBLIGATIONS OR LIABILITIES
UNDER ERISA OR SECTION 4975 OF THE CODE) IN ADDITION TO THOSE UNDERTAKEN IN THE
TRUST AGREEMENT, WHICH OPINION OF COUNSEL SHALL NOT BE AN EXPENSE OF THE
DEPOSITOR, THE SELLER, THE OWNER TRUSTEE, THE INDENTURE TRUSTEE, THE NOTE
REGISTRAR, THE RMBS MASTER SERVICER, THE SECURITIES ADMINISTRATOR, THE HELOC
BACK-UP SERVICER, THE RMBS SERVICER OR THE HELOC SERVICER.]

<PAGE>

                 AMERICAN HOME MORTGAGE INVESTMENT TRUST 2005-2
                      MORTGAGE-BACKED NOTES, SERIES 2005-2
                                CLASS [[__-]M-__]

AGGREGATE NOTE PRINCIPAL                                   NOTE INTEREST
BALANCE: $[______________]                                 RATE: Adjustable Rate

INITIAL NOTE PRINCIPAL                                     NOTE NO.  1
BALANCE OF THIS NOTE: $[_____________]

PERCENTAGE INTEREST: 100%                                  CUSIP NO:

         American Home Mortgage Investment Trust 2005-2 (the "Issuer"), a
Delaware statutory trust, for value received, hereby promises to pay to
[____________] or registered assigns, the principal sum of $[______________] in
monthly installments on the twenty-fifth day of each month or, if such day is
not a Business Day, the next succeeding Business Day (each a "Payment Date"),
commencing in July 2005 and ending on or before the Payment Date occurring in
_________________ (the "Final Scheduled Payment Date") and to pay interest on
the Note Principal Balance of this Note (this "Note") outstanding from time to
time as provided below.

         This Note is one of a duly authorized issue of the Issuer's
Mortgage-Backed Notes, Series 2005-2 (the "Notes"), issued under an Indenture
dated as of June 22, 2005 (the "Indenture"), between the Issuer, Deutsche Bank
National Trust Company, as indenture trustee (the "Indenture Trustee") and Wells
Fargo Bank, N.A., as securities administrator (the "Securities Administrator"),
to which Indenture and all indentures supplemental thereto reference is hereby
made for a statement of the respective rights thereunder of the Issuer, the
Indenture Trustee, the Securities Administrator and the Holders of the Notes and
the terms upon which the Notes are to be authenticated and delivered. All terms
used in this Note which are defined in the Indenture shall have the meanings
assigned to them in the Indenture.

         Payments of principal and interest on this Note will be made on each
Payment Date to the Noteholder of record as of the related Record Date. The
"Note Principal Balance" of a Note as of any date of determination is equal to
the initial Note Principal Balance thereof, reduced by the aggregate of all
amounts previously paid with respect to such Note on account of principal and
the aggregate amount of cumulative Realized Losses allocated to such Note on all
prior Payment Dates, and increased by any Subsequent Recoveries allocated to
such Note.

         The principal of, and interest on, this Note are due and payable as
described in the Indenture, in such coin or currency of the United States of
America as at the time of payment is legal tender for payment of public and
private debts. All payments made by the Issuer with respect to this Note shall
be equal to this Note's pro rata share of the aggregate payments on all Class
[[__-]M-__] Notes as described above, and shall be applied as between interest
and principal as provided in the Indenture.

         All principal and interest accrued on the Notes, if not previously
paid, will become finally due and payable at the Final Scheduled Payment Date.

         [The Majority Certificateholder shall have the option to purchase the
assets of the Trust related to Loan Group I, Loan Group II-C, Group II-NC, Loan
Group III, Loan Group IV and Loan Group V and thereby redeem the Class I-A,
Class II-A, Class III-A, Class IV-A, Class V-A, Class M, Class B, Class V-M,
Class V-B and Class N Notes on or after the Payment Date on which the Stated
Principal Balance of the related Mortgage Loans, and properties acquired in
respect thereof has been reduced to less than 10% of the sum of the Group I,
Group II-C, Group II-NC, Group III, Group IV and Group V Cut-off Date Balance;
provided, however, that no such redemption shall occur unless (i) the Note
Insurer is reimbursed for all payments made by the Note Insurer under the Note
Insurance Policy with respect to the Class V-A-4-D Notes, including interest
thereon, to the extent not previously paid or reimbursed and (ii) the Note
Insurer is reimbursed for any payments made by the Note Insurer under the Note
Insurance Policy with respect to the Class V-A-4-D Notes, including interest
thereon, as a result of such redemption.] [The Majority Certificateholder shall
have the option to purchase the assets of the Trust related to Loan Group I,
Loan Group II-C, Group II-NC, Loan Group III and Loan Group IV and thereby
redeem the Class I-A, Class II-A, Class III-A, Class IV-A, Class M, Class B and
Class N Notes on or after the Payment Date on which the Stated Principal Balance
of the Mortgage Loans, and properties acquired in respect thereof has been
reduced to less than 10% of the sum of the Group I, Group II-C, Group II-NC,
Group III and Group IV Cut-off Date Balance; provided, however, that no such
redemption shall occur unless (i) the Note Insurer is reimbursed for all
payments made by the Note Insurer under the Note Insurance Policy with respect
to the Class V-A-4-D Notes, including interest thereon, to the extent not
previously paid or reimbursed and (ii) the Note Insurer is reimbursed for any
payments made by the Note Insurer under the Note Insurance Policy with respect
to the Class V-A-4-D Notes, including interest thereon, as a result of such
redemption; and provided, further, that no such optional termination may be
exercised unless an opinion has been rendered by nationally recognized tax
counsel that such optional termination will not adversely affect the
characterization as indebtedness of any class of Notes currently outstanding.]
[The Majority Certificateholder shall have the option to purchase the assets of
the Trust related to Loan Group V and thereby redeem the Class V-A, Class V-M,
Class V-B and Class N Notes on or after the Payment Date on which the Stated
Principal Balance of the related Mortgage Loans, and properties acquired in
respect thereof has been reduced to less than 10% of the Group V Cut-off Date
Balance; provided, however, that no such redemption shall occur unless (i) the
Note Insurer is reimbursed for all payments made by the Note Insurer under the
Note Insurance Policy with respect to the Class V-A-4-D Notes, including
interest thereon, to the extent not previously paid or reimbursed and (ii) the
Note Insurer is reimbursed for any payments made by the Note Insurer under the
Note Insurance Policy with respect to the Class V-A-4-D Notes, including
interest thereon, as a result of such redemption; and provided, further, that no
such optional termination may be exercised unless an opinion has been rendered
by nationally recognized tax counsel that such optional termination will not
adversely affect the characterization as indebtedness of any class of Notes
currently outstanding.]

         The Issuer shall not be liable upon the indebtedness evidenced by the
Notes except to the extent of amounts available from the Trust Estate which
constitutes security for the payment of the Notes. The assets included in the
Trust Estate will be the sole source of payments on the Class [[__-]M-__] Notes,
and each Holder hereof, by its acceptance of this Note, agrees that (i) such
Note will be limited in right of payment to amounts available from the Trust
Estate as provided in the Indenture and (ii) such Holder shall have no recourse
to the Issuer, the Owner Trustee, the Indenture Trustee, the Depositor, the
Securities Administrator, the Seller, the RMBS Master Servicer, any Servicer or
any of their respective affiliates, or to the assets of any of the foregoing
entities, except the assets of the Issuer pledged to secure Class [[__-]M-__]
Notes pursuant to the Indenture and the rights conveyed to the Issuer under the
Indenture.

         Any payment of principal or interest payable on this Note which is
punctually paid on the applicable Payment Date shall be paid to the Person in
whose name such Note is registered at the close of business on the Record Date
for such Payment Date by check mailed to such person's address as it appears in
the Note Register on such Record Date, except for the final installment of
principal and interest payable with respect to such Note, which shall be payable
as provided below. Notwithstanding the foregoing, upon written request with
appropriate instructions by the Holder of this Note delivered to the Indenture
Trustee at least five Business Days prior to the Record Date, any payment of
principal or interest, other than the final installment of principal or
interest, shall be made by wire transfer to an account in the United States
designated by such Holder. All reductions in the principal amount of a Note
effected by payments of principal made on any Payment Date shall be binding upon
all Holders of this Note and of any note issued upon the registration of
transfer thereof or in exchange therefor or in lieu thereof, whether or not such
payment is noted on such Note. The final payment of this Note shall be payable
upon presentation and surrender thereof on or after the Payment Date thereof at
the office or agency designated by the Indenture Trustee and maintained by it
for such purpose pursuant to Section 3.02 of the Indenture.

         Subject to the foregoing provisions, each Note delivered under the
Indenture, upon registration of transfer of or in exchange for or in lieu of any
other Note, shall carry the right to unpaid principal and interest that were
carried by such other Note.

         If an Event of Default as defined in the Indenture shall occur and be
continuing with respect to the Notes, the Notes may become or be declared due
and payable in the manner and with the effect provided in the Indenture. If any
such acceleration of maturity occurs prior to the payment of the entire unpaid
Note Principal Balance of the Notes, the amount payable to the Holder of this
Note will be equal to the sum of the unpaid Note Principal Balance of this Note,
together with accrued and unpaid interest thereon as described in the Indenture.
The Indenture provides that, notwithstanding the acceleration of the maturity of
the Notes, under certain circumstances specified therein, all amounts collected
as proceeds of the Trust Estate securing the Notes or otherwise shall continue
to be applied to payments of principal of and interest on the Notes as if they
had not been declared due and payable.

         The failure to pay any Unpaid Interest Shortfall at any time when funds
are not available to make such payment as provided in the Indenture shall not
constitute an Event of Default under the Indenture.

         [The Holder of this Note or Beneficial Owner of any interest herein is
deemed to represent that either (1) it is not acquiring the Note with Plan
Assets or (2) (A) the acquisition, holding and transfer of a Note will not give
rise to a nonexempt prohibited transaction under Section 406 of ERISA or Section
4975 of the Code and (B) the Notes are rated investment grade or better and such
person believes that the Notes are properly treated as indebtedness without
substantial equity features for purposes of the DOL Regulations, and agrees to
so treat the Notes. Alternatively, regardless of the rating of the Notes, such
person may provide the Indenture Trustee and the Owner Trustee with an opinion
of counsel, which opinion of counsel will not be at the expense of the Issuer,
the Seller, any Underwriter, the Owner Trustee, the Indenture Trustee, the
Securities Administrator, the RMBS Master Servicer or any servicer, which opines
that the acquisition, holding and transfer of such Note or interest therein is
permissible under applicable law, will not constitute or result in a non-exempt
prohibited transaction under ERISA or Section 4975 of the Code and will not
subject the Issuer, the Seller, the Depositor, any Underwriter, the Owner
Trustee, the Indenture Trustee, the Securities Administrator, the RMBS Master
Servicer or any servicer to any obligation in addition to those undertaken in
the Indenture.]

         As provided in the Indenture and subject to certain limitations therein
set forth, the transfer of this Note may be registered on the Note Register of
the Issuer. Upon surrender for registration of transfer of, or presentation of a
written instrument of transfer for, this Note at the office or agency designated
by the Issuer pursuant to the Indenture, accompanied by proper instruments of
assignment in form satisfactory to the Indenture Trustee, one or more new Notes
of any authorized denominations and of a like aggregate then outstanding Note
Principal Balance, will be issued to the designated transferee or transferees.

         Prior to the due presentment for registration of transfer of this Note,
the Issuer, the Indenture Trustee and any agent of the Issuer or the Indenture
Trustee may treat the Person in whose name this Note is registered as the owner
of such Note (i) on the applicable Record Date for the purpose of making
payments and interest of such Note, and (ii) on any other date for all other
purposes whatsoever, as the owner hereof, whether or not this Note be overdue,
and neither the Issuer, the Indenture Trustee nor any such agent of the Issuer
or the Indenture Trustee shall be affected by notice to the contrary.

         The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Issuer and the rights of the Holders of the Notes under the Indenture at any
time by the Issuer and the Holders of a majority of each Class of Notes affected
thereby. The Indenture also contains provisions permitting the Holders of Notes
representing not less than a majority of the aggregate Note Principal Balance of
the Notes, to waive any past Event of Default and its consequences except an
Event of Default (a) with respect to payment of principal of or interest on any
of the Notes, or (b) in respect of a covenant or provision of the Indenture
which cannot be modified or amended without the consent of the Holder of each
Note. Any such waiver by the Holder, at the time of the giving thereof, of this
Note (or any one or more predecessor Notes) shall bind the Holder of every Note
issued upon the registration of transfer hereof or in exchange hereof or in lieu
hereof, whether or not notation of such consent or waiver is made upon such
Note. The Indenture also permits the Issuer and the Indenture Trustee, following
prior notice to the Rating Agencies, to amend or waive certain terms and
conditions set forth in the Indenture without the consent of the Holders of the
Notes issued thereunder.

         [Initially, the Notes will be registered in the name of ____________- ]
[Initially, the Notes will be registered in the name of Cede & Co. as nominee of
DTC, acting in its capacity as the Depository for the Notes. The Notes will be
delivered by the clearing agency in denominations as provided in the Indenture
and subject to certain limitations therein set forth.] The Notes are
exchangeable for a like aggregate then outstanding Note Principal Balance of
Notes of different authorized denominations, as requested by the Holder
surrendering same.

         [No transfer, sale, pledge or other disposition of a Non-Offered Note
shall be made unless such transfer, sale, pledge or other disposition is exempt
from the registration requirements of the Securities Act and any applicable
state securities laws or is made in accordance with said Act and laws. In the
event of any such transfer, the Note Registrar or the Depositor shall prior to
such transfer require the transferee to execute (A) either (i) (a) an investment
letter in substantially the form attached to the Indenture as Exhibit K (or in
such form and substance reasonably satisfactory to the Note Registrar and the
Depositor) which investment letter shall not be an expense of the Trust, the
Owner Trustee, the Indenture Trustee, the Securities Administrator, the Note
Registrar, the RMBS Master Servicer, the HELOC Back-Up Servicer, the RMBS
Servicer, the HELOC Back-Up Servicer, the Seller or the Depositor and which
investment letter states that, among other things, such transferee (1) is a
"qualified institutional buyer" as defined under Rule 144A, acting for its own
account or the accounts of other "qualified institutional buyers" as defined
under Rule 144A, and (2) is aware that the proposed transferor intends to rely
on the exemption from registration requirements under the Securities Act of
1933, as amended, provided by Rule 144A or (ii) (a) a written Opinion of Counsel
acceptable to and in form and substance satisfactory to the Note Registrar and
the Depositor that such transfer may be made pursuant to an exemption,
describing the applicable exemption and the basis therefor, from said Act and
laws or is being made pursuant to said Act and laws, which Opinion of Counsel
shall not be an expense of the Trust, the Owner Trustee, the Indenture Trustee,
the Securities Administrator, the Note Registrar, the RMBS Master Servicer, the
HELOC Back-Up Servicer, the RMBS Servicer, the HELOC Back-Up Servicer, the
Seller or the Depositor and (b) either (1) the transferee executes a
representation letter, substantially in the form of Exhibit M hereto, and the
transferor executes a representation letter, substantially in the form of
Exhibit N hereto, each acceptable to and in form and substance satisfactory to
the Note Registrar certifying the facts surrounding such transfer, which
representation letters shall not be an expense of the Trust, the Owner Trustee,
the Indenture Trustee, the Securities Administrator, the Note Registrar, the
RMBS Master Servicer, the HELOC Back-Up Servicer, the RMBS Servicer, the HELOC
Back-Up Servicer, the Seller or the Depositor or (2) an Opinion of Counsel has
been rendered by nationally recognized tax counsel stating that such Notes will
be treated as debt for federal income tax purposes and (B) the Certificate of
Non-Foreign Status (in substantially the form attached to the Indenture as
Exhibit L) acceptable to and in form and substance reasonably satisfactory to
the Note Registrar, which certificate shall not be an expense of the Trust, the
Owner Trustee, the Indenture Trustee, the Securities Administrator, the Note
Registrar, the RMBS Master Servicer, the HELOC Back-Up Servicer, the RMBS
Servicer, the HELOC Back-Up Servicer, the Seller or the Depositor. The Holder of
a Non-Offered Note desiring to effect such transfer shall, and does hereby agree
to, indemnify the Trust, the Owner Trustee, the Indenture Trustee, the Paying
Agent, the Note Registrar, the RMBS Master Servicer, the HELOC Back-Up Servicer,
the RMBS Servicer, the HELOC Servicer and the Depositor against any liability
that may result if the transfer is not so exempt or is not made in accordance
with such federal and state laws.

         No transfer of Non-Offered Notes or any interest therein shall be made
to any Person unless the Depositor, the Owner Trustee, the Securities
Administrator, the Note Registrar, the RMBS Master Servicer, the HELOC Back-Up
Servicer, the RMBS Servicer, the HELOC Back-Up Servicer and the Seller are
provided with an Opinion of Counsel which establishes to the satisfaction of the
Depositor, the Owner Trustee, the Indenture Trustee and the Note Registrar that
the purchase of Non-Offered Notes is permissible under applicable law, will not
constitute or result in any prohibited transaction under ERISA or Section 4975
of the Code and will not subject the Depositor, the Owner Trustee, the Indenture
Trustee, the Securities Administrator, the Note Registrar, the RMBS Master
Servicer, the HELOC Back-Up Servicer, the RMBS Servicer, the HELOC Back-Up
Servicer or the Seller to any obligation or liability (including obligations or
liabilities under ERISA or Section 4975 of the Code) in addition to those
undertaken in the Indenture, which Opinion of Counsel shall not be an expense of
the Depositor, the Owner Trustee, the Indenture Trustee, the Securities
Administrator, the Note Registrar, the RMBS Master Servicer, the HELOC Back-Up
Servicer, the RMBS Servicer, the HELOC Back-Up Servicer or the Seller. In lieu
of such Opinion of Counsel, a Person may provide a certification in the form of
Exhibit G to the Indenture, which the Depositor, the Owner Trustee, the
Indenture Trustee, the Securities Administrator, the Note Registrar, the RMBS
Master Servicer, the HELOC Back-Up Servicer, the RMBS Servicer, the HELOC
Back-Up Servicer and the Seller may rely upon without further inquiry or
investigation. Neither an Opinion of Counsel nor a certification will be
required in connection with the initial transfer of any such Note by the
Depositor to an affiliate of the Depositor (in which case, the Depositor or any
affiliate thereof shall have deemed to have represented that such affiliate is
not a Plan or a Person investing Plan Assets of any Plan) and the Owner Trustee
shall be entitled to conclusively rely upon a representation (which, upon the
request of the Owner Trustee, shall be a written representation) from the
Depositor of the status of such transferee as an affiliate of the Depositor.

         No person shall become a Non-Offered Noteholder, so long as any Notes
are Outstanding, until it shall establish its status as a real estate investment
trust ("REIT") or as a "qualified REIT subsidiary" ("QRS") within the meaning of
Section 856(a) or Section 856(i) of the Code, respectively, by submitting to the
Note Registrar and the Transferee Certificate set forth in Exhibit H to the
Indenture.

         No offer, sale, transfer, pledge, hypothecation or other disposition
(including any pledge, sale or transfer under a repurchase transaction or
securities loan) of any Non-Offered Note shall be made to any transferee unless,
prior to such disposition, the proposed transferor delivers to the Note
Registrar (i) an Opinion of Counsel, rendered by a law firm generally recognized
to be qualified to opine concerning the tax aspects of asset securitization, to
the effect that such transfer (including any disposition permitted following any
default under any pledge or repurchase transaction) will not cause the Trust to
be no longer be treated for federal income tax purposes as a "qualified REIT
subsidiary" within the meaning of Section 856(i) of the Code and (ii) a
certificate that stating that any Non-Offered Notes may be transferred by the
related lender under any such related loan agreement or repurchase agreement
upon a default under any such indebtedness, in which case the transferor shall
deliver to the Note Registrar and the Indenture Trustee substantially in the
form attached as Exhibit I to the Indenture certifying to such effect.
Notwithstanding the foregoing, the provisions of this paragraph shall not apply
to the initial transfer of the Non-Offered Notes to the Depositor.]

         Unless the Certificate of Authentication hereon has been executed by
the Indenture Trustee by manual signature, this Note shall not be entitled to
any benefit under the Indenture, or be valid or obligatory for any purpose.

         Anything herein to the contrary notwithstanding, except as expressly
provided in the Basic Documents, neither the Owner Trustee in its individual
capacity, nor any of its respective partners, beneficiaries, agents, officers,
directors, employees, or successors or assigns, shall be personally liable for,
nor shall recourse be had to any of them for, the payment of principal of or
interest on, or performance of, or omission to perform, any of the covenants,
obligations or indemnifications contained in this Note, it being expressly
understood that said covenants, obligations and indemnifications have been made
solely by the Trust to the extent of the assets of the Trust. The holder of this
Note by the acceptance hereof agrees that, except as expressly provided in the
Basic Documents, the Holder shall have no claim against any of the foregoing for
any deficiency, loss or claim therefrom; provided, however, that nothing
contained herein shall be taken to prevent recourse to, and enforcement against,
the assets of the Trust Estate for any and all liabilities, obligations and
undertakings contained in this Note.

         AS PROVIDED IN THE INDENTURE, THIS NOTE AND THE INDENTURE CREATING THIS
NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH, AND GOVERNED BY, THE LAWS OF THE
STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED THEREIN.

<PAGE>

         IN WITNESS WHEREOF, the Issuer has caused this instrument to be duly
executed by M&T Trust Company of Delaware, not in its individual capacity but
solely as Owner Trustee.

Dated: June 22, 2005

                                             AMERICAN HOME MORTGAGE INVESTMENT
                                             TRUST 2005-2

                                             BY: WILMINGTON TRUST COMPANY, not
                                                 in its individual capacity but
                                                 solely in its capacity as Owner
                                                 Trustee

                                             By:
                                                 -------------------------------
                                                 Authorized Signatory

                INDENTURE TRUSTEE'S CERTIFICATE OF AUTHENTICATION

This is one of the Class [[__-]M-__] Notes referred to in the within-mentioned
Indenture.

DEUTSCHE BANK NATIONAL TRUST COMPANY, as Indenture Trustee

By:
    ------------------------
    Authorized Signatory

<PAGE>

                                  ABBREVIATIONS

         The following abbreviations, when used in the inscription on the face
of the Note, shall be construed as though they were written out in full
according to applicable laws or regulations:

           TEN COM       --  as tenants in common
           TEN ENT       --  as tenants by the entireties
           JT TEN        --  as joint tenants with right of survivorship and not
                             as tenants in common
      UNIF GIFT MIN ACT  --  __________ Custodian ______________________________
                               (Cust)                          (Minor)

                             under Uniform Gifts to Minor Act __________________
                                                                    (State)

ADDITIONAL ABBREVIATIONS MAY ALSO BE USED THOUGH NOT IN THE ABOVE LIST.

<PAGE>

                                   ASSIGNMENT

          FOR VALUE RECEIVED, THE UNDERSIGNED HEREBY SELLS, ASSIGNS AND
                                 TRANSFERS UNTO

          PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF
                                    ASSIGNEE:

  (PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS, INCLUDING ZIP CODE, OF ASSIGNEE)

_____________________________________________________________________________
the within Note and all rights thereunder, and hereby irrevocably constitutes
and appoints ________________________ attorney to transfer said Note on the
books kept for registration thereof, with full power of substitution in the
premises.

Dated: __________________________    ___________________________________________

Signature Guaranteed by ________________________________________________________

         NOTICE: The signature(s) to this assignment must correspond with the
name as it appears upon the face of the within Note in every particular, without
alteration or enlargement or any change whatsoever. Signature(s) must be
guaranteed by a commercial bank or by a member firm of the New York Stock
Exchange or another national securities exchange. Notarized or witnessed
signatures are not acceptable.

<PAGE>

                                   EXHIBIT A-3
                               CLASS [[V-]B] NOTES

THIS NOTE IS SUBORDINATED IN RIGHT OF PAYMENT TO THE CLASS [__A-__] NOTES AND
CLASS [[__-]M-__] NOTES AS DESCRIBED IN THE INDENTURE.

THE HOLDER OF THIS NOTE OR BENEFICIAL OWNER OF ANY INTEREST HEREIN WILL BE
DEEMED TO REPRESENT TO ONE OF THE REPRESENTATIONS CONTAINED IN SECTION 4.15 OF
THE INDENTURE.

THIS NOTE IS A NON-RECOURSE OBLIGATION OF THE ISSUER, AND IS LIMITED IN RIGHT OF
PAYMENT TO AMOUNTS AVAILABLE FROM THE TRUST ESTATE AS PROVIDED IN THE INDENTURE
REFERRED TO BELOW. THE ISSUER IS NOT OTHERWISE PERSONALLY LIABLE FOR PAYMENTS ON
THIS NOTE.

PRINCIPAL OF THIS NOTE IS PAYABLE OVER TIME AS SET FORTH HEREIN. ACCORDINGLY,
THE OUTSTANDING PRINCIPAL OF THIS NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT
SHOWN ON THE FACE HEREOF.

NO TRANSFER OF THIS NOTE SHALL BE MADE UNLESS THE NOTE REGISTRAR SHALL HAVE
RECEIVED A CERTIFICATE OF NON-FOREIGN STATUS CERTIFYING AS TO THE TRANSFEREE'S
STATUS AS A U.S. PERSON OR CORPORATION UNDER U.S. LAW.

NO TRANSFER OF THIS NOTE SHALL BE MADE UNLESS THE NOTE REGISTRAR HAS RECEIVED
PROOF OF THE TRANSFEREE'S STATUS AS A REIT OR AS A QUALIFIED REIT SUBSIDIARY,
WITHIN THE MEANING OF SECTION 856(a) OR SECTION 856(i) OF THE CODE,
RESPECTIVELY.

THIS NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE RESOLD OR
TRANSFERRED UNLESS IT IS REGISTERED PURSUANT TO SUCH ACT AND LAWS OR IS SOLD OR
TRANSFERRED IN TRANSACTIONS WHICH ARE EXEMPT FROM REGISTRATION UNDER SUCH ACT
AND UNDER APPLICABLE STATE LAW AND IS TRANSFERRED IN ACCORDANCE WITH THE
PROVISIONS OF SECTION 3.05 OF THE TRUST AGREEMENT REFERRED TO HEREIN.

NO TRANSFER OF THIS NOTE SHALL BE MADE UNLESS THE NOTE REGISTRAR SHALL HAVE
RECEIVED EITHER (i) A REPRESENTATION LETTER FROM THE TRANSFEREE OF THIS NOTE TO
THE EFFECT THAT SUCH TRANSFEREE IS NOT AN EMPLOYEE BENEFIT PLAN OR OTHER PLAN
SUBJECT TO THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED
("ERISA"), OR SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE
"CODE"), OR A PERSON ACTING ON BEHALF OF ANY SUCH PLAN OR USING THE ASSETS OF
ANY SUCH PLAN, OR (ii) IF THIS NOTE IS PRESENTED FOR REGISTRATION IN THE NAME OF
A PLAN SUBJECT TO ERISA OR SECTION 4975 OF THE CODE (OR COMPARABLE PROVISIONS OF
ANY SUBSEQUENT ENACTMENTS), OR A TRUSTEE OF ANY SUCH PLAN, OR ANY OTHER PERSON
WHO IS USING THE ASSETS OF ANY SUCH PLAN TO EFFECT SUCH ACQUISITION, AN OPINION
OF COUNSEL TO THE EFFECT THAT THE PURCHASE OF NOTES, OPERATION OF TRUST AND
MANAGEMENT OF TRUST ASSETS ARE PERMISSIBLE UNDER APPLICABLE LAW, WILL NOT
CONSTITUTE OR RESULT IN ANY PROHIBITED TRANSACTION UNDER ERISA OR SECTION 4975
OF THE CODE AND WILL NOT SUBJECT THE DEPOSITOR, THE SELLER, THE OWNER TRUSTEE,
THE INDENTURE TRUSTEE, THE NOTE REGISTRAR, THE SECURITIES ADMINISTRATOR, THE
RMBS MASTER SERVICER, THE HELOC BACK-UP SERVICER, THE RMBS SERVICER OR THE HELOC
SERVICER TO ANY OBLIGATION OR LIABILITY (INCLUDING OBLIGATIONS OR LIABILITIES
UNDER ERISA OR SECTION 4975 OF THE CODE) IN ADDITION TO THOSE UNDERTAKEN IN THE
TRUST AGREEMENT, WHICH OPINION OF COUNSEL SHALL NOT BE AN EXPENSE OF THE
DEPOSITOR, THE SELLER, THE OWNER TRUSTEE, THE INDENTURE TRUSTEE, THE NOTE
REGISTRAR, THE RMBS MASTER SERVICER, THE SECURITIES ADMINISTRATOR, THE HELOC
BACK-UP SERVICER, THE RMBS SERVICER OR THE HELOC SERVICER.

<PAGE>

                 AMERICAN HOME MORTGAGE INVESTMENT TRUST 2005-2
                      MORTGAGE-BACKED NOTES, SERIES 2005-2
                                  CLASS [[V-]B]

AGGREGATE NOTE PRINCIPAL                        NOTE INTEREST
BALANCE: $[______________]                      RATE: [Adjustable Rate] [0.000%]

INITIAL NOTE PRINCIPAL                          NOTE NO.  1
BALANCE OF THIS NOTE: $[_____________]

PERCENTAGE INTEREST: 100%                       CUSIP NO:

         American Home Mortgage Investment Trust 2005-2 (the "Issuer"), a
Delaware statutory trust, for value received, hereby promises to pay to
[____________] or registered assigns, the principal sum of $[______________] in
monthly installments on the twenty-fifth day of each month or, if such day is
not a Business Day, the next succeeding Business Day (each a "Payment Date"),
commencing in July 2005 and ending on or before the Payment Date occurring in
______________ (the "Final Scheduled Payment Date") [and to pay interest on the
Note Principal Balance of this Note (this "Note") outstanding from time to time
as provided below.]

         This Note is one of a duly authorized issue of the Issuer's
Mortgage-Backed Notes, Series 2005-2 (the "Notes"), issued under an Indenture
dated as of June 22, 2005 (the "Indenture"), between the Issuer, Deutsche Bank
National Trust Company, as indenture trustee (the "Indenture Trustee") and Wells
Fargo Bank, N.A., as securities administrator (the "Securities Administrator"),
to which Indenture and all indentures supplemental thereto reference is hereby
made for a statement of the respective rights thereunder of the Issuer, the
Indenture Trustee and the Holders of the Notes and the terms upon which the
Notes are to be authenticated and delivered. All terms used in this Note which
are defined in the Indenture shall have the meanings assigned to them in the
Indenture.

         Payments of principal [and interest] on this Note will be made on each
Payment Date to the Noteholder of record as of the related Record Date. The
"Note Principal Balance" of a Note as of any date of determination is equal to
the initial Note Principal Balance thereof, reduced by the aggregate of all
amounts previously paid with respect to such Note on account of principal and
the aggregate amount of cumulative Realized Losses allocated to such Note on all
prior Payment Dates, and increased by any Subsequent Recoveries allocated to
such Note.

         The principal of[, and interest on,] this Note are due and payable as
described in the Indenture, in such coin or currency of the United States of
America as at the time of payment is legal tender for payment of public and
private debts. All payments made by the Issuer with respect to this Note shall
be equal to this Note's pro rata share of the aggregate payments on all Class
[[V-]B] Notes as described above, and shall be applied as between [interest and
]principal as provided in the Indenture.

         All principal [and interest accrued] on the Notes, if not previously
paid, will become finally due and payable at the Final Scheduled Payment Date.

         [The Majority Certificateholder shall have the option to purchase the
assets of the Trust related to Loan Group I, Loan Group II-C, Loan Group II-NC,
Loan Group III, Loan Group IV and Loan Group V and thereby redeem the Class I-A,
Class II-A, Class III-A, Class IV-A, Class V-A, Class M, Class B, Class V-M,
Class V-B and Class N Notes on or after the Payment Date on which the Stated
Principal Balance of the related Mortgage Loans, and properties acquired in
respect thereof has been reduced to less than 10% of the sum of the Group I,
Group II-C, Group II-NC, Group III, Group IV and Group V Cut-off Date Balance;
provided, however, that no such redemption shall occur unless (i) the Note
Insurer is reimbursed for all payments made by the Note Insurer under the Note
Insurance Policy with respect to the Class V-A-4-D Notes, including interest
thereon, to the extent not previously paid or reimbursed and (ii) the Note
Insurer is reimbursed for any payments made by the Note Insurer under the Note
Insurance Policy with respect to the Class V-A-4-D Notes, including interest
thereon, as a result of such redemption.] [The Majority Certificateholder shall
have the option to purchase the assets of the Trust related to Loan Group I,
Loan Group II-C, Group II-NC, Loan Group III and Loan Group IV and thereby
redeem the Class I-A, Class II-A, Class III-A, Class IV-A, Class M, Class B and
Class N Notes on or after the Payment Date on which the Stated Principal Balance
of the Mortgage Loans, and properties acquired in respect thereof has been
reduced to less than 10% of the sum of the Group I, Group II-C, Group II-NC,
Group III and Group IV Cut-off Date Balance; provided, however, that no such
redemption shall occur unless (i) the Note Insurer is reimbursed for all
payments made by the Note Insurer under the Note Insurance Policy with respect
to the Class V-A-4-D Notes, including interest thereon, to the extent not
previously paid or reimbursed and (ii) the Note Insurer is reimbursed for any
payments made by the Note Insurer under the Note Insurance Policy with respect
to the Class V-A-4-D Notes, including interest thereon, as a result of such
redemption; and provided, further, that no such optional termination may be
exercised unless an opinion has been rendered by nationally recognized tax
counsel that such optional termination will not adversely affect the
characterization as indebtedness of any class of Notes currently outstanding.]
[The Majority Certificateholder shall have the option to purchase the assets of
the Trust related to Loan Group V and thereby redeem the Class V-A, Class V-M,
Class V-B and Class N Notes on or after the Payment Date on which the Stated
Principal Balance of the related Mortgage Loans, and properties acquired in
respect thereof has been reduced to less than 10% of the Group V Cut-off Date
Balance; provided, however, that no such redemption shall occur unless (i) the
Note Insurer is reimbursed for all payments made by the Note Insurer under the
Note Insurance Policy with respect to the Class V-A-4-D Notes, including
interest thereon, to the extent not previously paid or reimbursed and (ii) the
Note Insurer is reimbursed for any payments made by the Note Insurer under the
Note Insurance Policy with respect to the Class V-A-4-D Notes, including
interest thereon, as a result of such redemption; and provided, further, that no
such optional termination may be exercised unless an opinion has been rendered
by nationally recognized tax counsel that such optional termination will not
adversely affect the characterization as indebtedness of any class of Notes
currently outstanding.]

         The Issuer shall not be liable upon the indebtedness evidenced by the
Notes except to the extent of amounts available from the Trust Estate which
constitutes security for the payment of the Notes. The assets included in the
Trust Estate will be the sole source of payments on the Class [[V-]B] Notes, and
each Holder hereof, by its acceptance of this Note, agrees that (i) such Note
will be limited in right of payment to amounts available from the Trust Estate
as provided in the Indenture and (ii) such Holder shall have no recourse to the
Issuer, the Owner Trustee, the Indenture Trustee, the Depositor, the Securities
Administrator, the Seller, the RMBS Master Servicer, any Servicer or any of
their respective affiliates, or to the assets of any of the foregoing entities,
except the assets of the Issuer pledged to secure the Class [[V-]B] Notes
pursuant to the Indenture and the rights conveyed to the Issuer under the
Indenture.

         Any payment of principal [or interest] payable on this Note which is
punctually paid on the applicable Payment Date shall be paid to the Person in
whose name such Note is registered at the close of business on the Record Date
for such Payment Date by check mailed to such person's address as it appears in
the Note Register on such Record Date, except for the final installment of
principal [and interest] payable with respect to such Note, which shall be
payable as provided below. Notwithstanding the foregoing, upon written request
with appropriate instructions by the Holder of this Note delivered to the
Indenture Trustee at least five Business Days prior to the Record Date, any
payment of principal [or interest], other than the final installment of
principal [or interest], shall be made by wire transfer to an account in the
United States designated by such Holder. All reductions in the principal amount
of a Note effected by payments of principal made on any Payment Date shall be
binding upon all Holders of this Note and of any note issued upon the
registration of transfer thereof or in exchange therefor or in lieu thereof,
whether or not such payment is noted on such Note. The final payment of this
Note shall be payable upon presentation and surrender thereof on or after the
Payment Date thereof at the office or agency designated by the Indenture Trustee
and maintained by it for such purpose pursuant to Section 3.02 of the Indenture.

         Subject to the foregoing provisions, each Note delivered under the
Indenture, upon registration of transfer of or in exchange for or in lieu of any
other Note, shall carry the right to unpaid principal [and interest] that were
carried by such other Note.

         If an Event of Default as defined in the Indenture shall occur and be
continuing with respect to the Notes, the Notes may become or be declared due
and payable in the manner and with the effect provided in the Indenture. If any
such acceleration of maturity occurs prior to the payment of the entire unpaid
Note Principal Balance of the Notes, the amount payable to the Holder of this
Note will be equal to the sum of the unpaid Note Principal Balance of this
Note[, together with accrued and unpaid interest thereon as described in the
Indenture]. The Indenture provides that, notwithstanding the acceleration of the
maturity of the Notes, under certain circumstances specified therein, all
amounts collected as proceeds of the Trust Estate securing the Notes or
otherwise shall continue to be applied to payments of principal of [and
interest] on the Notes as if they had not been declared due and payable.

         [The failure to pay any Unpaid Interest Shortfall at any time when
funds are not available to make such payment as provided in the Indenture shall
not constitute an Event of Default under the Indenture.]

         As provided in the Indenture and subject to certain limitations therein
set forth, the transfer of this Note may be registered on the Note Register of
the Issuer. Upon surrender for registration of transfer of, or presentation of a
written instrument of transfer for, this Note at the office or agency designated
by the Issuer pursuant to the Indenture, accompanied by proper instruments of
assignment in form satisfactory to the Indenture Trustee, one or more new Notes
of any authorized denominations and of a like aggregate then outstanding Note
Principal Balance, will be issued to the designated transferee or transferees.

         Prior to the due presentment for registration of transfer of this Note,
the Issuer, the Indenture Trustee and any agent of the Issuer or the Indenture
Trustee may treat the Person in whose name this Note is registered as the owner
of such Note (i) on the applicable Record Date for the purpose of making
payments [and interest] of such Note, and (ii) on any other date for all other
purposes whatsoever, as the owner hereof, whether or not this Note be overdue,
and neither the Issuer, the Indenture Trustee nor any such agent of the Issuer
or the Indenture Trustee shall be affected by notice to the contrary.

         The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Issuer and the rights of the Holders of the Notes under the Indenture at any
time by the Issuer and the Holders of a majority of each Class of Notes affected
thereby. The Indenture also contains provisions permitting the Holders of Notes
representing not less than a majority of the aggregate Note Principal Balance of
the Notes, to waive any past Event of Default and its consequences except an
Event of Default (a) with respect to payment of principal of [or interest] on
any of the Notes, or (b) in respect of a covenant or provision of the Indenture
which cannot be modified or amended without the consent of the Holder of each
Note. Any such waiver by the Holder, at the time of the giving thereof, of this
Note (or any one or more predecessor Notes) shall bind the Holder of every Note
issued upon the registration of transfer hereof or in exchange hereof or in lieu
hereof, whether or not notation of such consent or waiver is made upon such
Note. The Indenture also permits the Issuer and the Indenture Trustee, following
prior notice to the Rating Agencies, to amend or waive certain terms and
conditions set forth in the Indenture without the consent of the Holders of the
Notes issued thereunder.

         Initially, the Notes will be registered in the name of ____________.
The Notes are exchangeable for a like aggregate then outstanding Note Principal
Balance of Notes of different authorized denominations, as requested by the
Holder surrendering same.

         No transfer, sale, pledge or other disposition of a Non-Offered Note
shall be made unless such transfer, sale, pledge or other disposition is exempt
from the registration requirements of the Securities Act and any applicable
state securities laws or is made in accordance with said Act and laws. In the
event of any such transfer, the Note Registrar or the Depositor shall prior to
such transfer require the transferee to execute (A) either (i) (a) an investment
letter in substantially the form attached to the Indenture as Exhibit K (or in
such form and substance reasonably satisfactory to the Note Registrar and the
Depositor) which investment letter shall not be an expense of the Trust, the
Owner Trustee, the Indenture Trustee, the Securities Administrator, the Note
Registrar, the RMBS Master Servicer, the HELOC Back-Up Servicer, the RMBS
Servicer, the HELOC Back-Up Servicer, the Seller or the Depositor and which
investment letter states that, among other things, such transferee (1) is a
"qualified institutional buyer" as defined under Rule 144A, acting for its own
account or the accounts of other "qualified institutional buyers" as defined
under Rule 144A, and (2) is aware that the proposed transferor intends to rely
on the exemption from registration requirements under the Securities Act of
1933, as amended, provided by Rule 144A or (ii) (a) a written Opinion of Counsel
acceptable to and in form and substance satisfactory to the Note Registrar and
the Depositor that such transfer may be made pursuant to an exemption,
describing the applicable exemption and the basis therefor, from said Act and
laws or is being made pursuant to said Act and laws, which Opinion of Counsel
shall not be an expense of the Trust, the Owner Trustee, the Indenture Trustee,
the Securities Administrator, the Note Registrar, the RMBS Master Servicer, the
HELOC Back-Up Servicer, the RMBS Servicer, the HELOC Back-Up Servicer, the
Seller or the Depositor and (b) either (1) the transferee executes a
representation letter, substantially in the form of Exhibit M hereto, and the
transferor executes a representation letter, substantially in the form of
Exhibit N hereto, each acceptable to and in form and substance satisfactory to
the Note Registrar certifying the facts surrounding such transfer, which
representation letters shall not be an expense of the Trust, the Owner Trustee,
the Indenture Trustee, the Securities Administrator, the Note Registrar, the
RMBS Master Servicer, the HELOC Back-Up Servicer, the RMBS Servicer, the HELOC
Back-Up Servicer, the Seller or the Depositor or (2) an Opinion of Counsel has
been rendered by nationally recognized tax counsel stating that such Notes will
be treated as debt for federal income tax purposes and (B) the Certificate of
Non-Foreign Status (in substantially the form attached to the Indenture as
Exhibit L) acceptable to and in form and substance reasonably satisfactory to
the Note Registrar, which certificate shall not be an expense of the Trust, the
Owner Trustee, the Indenture Trustee, the Securities Administrator, the Note
Registrar, the RMBS Master Servicer, the HELOC Back-Up Servicer, the RMBS
Servicer, the HELOC Back-Up Servicer, the Seller or the Depositor. The Holder of
a Non-Offered Note desiring to effect such transfer shall, and does hereby agree
to, indemnify the Trust, the Owner Trustee, the Indenture Trustee, the Paying
Agent, the Note Registrar, the RMBS Master Servicer, the HELOC Back-Up Servicer,
the RMBS Servicer, the HELOC Servicer and the Depositor against any liability
that may result if the transfer is not so exempt or is not made in accordance
with such federal and state laws.

         No transfer of Non-Offered Notes or any interest therein shall be made
to any Person unless the Depositor, the Owner Trustee, the Securities
Administrator, the Note Registrar, the RMBS Master Servicer, the HELOC Back-Up
Servicer, the RMBS Servicer, the HELOC Back-Up Servicer and the Seller are
provided with an Opinion of Counsel which establishes to the satisfaction of the
Depositor, the Owner Trustee, the Indenture Trustee and the Note Registrar that
the purchase of Non-Offered Notes is permissible under applicable law, will not
constitute or result in any prohibited transaction under ERISA or Section 4975
of the Code and will not subject the Depositor, the Owner Trustee, the Indenture
Trustee, the Securities Administrator, the Note Registrar, the RMBS Master
Servicer, the HELOC Back-Up Servicer, the RMBS Servicer, the HELOC Back-Up
Servicer or the Seller to any obligation or liability (including obligations or
liabilities under ERISA or Section 4975 of the Code) in addition to those
undertaken in the Indenture, which Opinion of Counsel shall not be an expense of
the Depositor, the Owner Trustee, the Indenture Trustee, the Securities
Administrator, the Note Registrar, the RMBS Master Servicer, the HELOC Back-Up
Servicer, the RMBS Servicer, the HELOC Back-Up Servicer or the Seller. In lieu
of such Opinion of Counsel, a Person may provide a certification in the form of
Exhibit G to the Indenture, which the Depositor, the Owner Trustee, the
Indenture Trustee, the Securities Administrator, the Note Registrar, the RMBS
Master Servicer, the HELOC Back-Up Servicer, the RMBS Servicer, the HELOC
Back-Up Servicer and the Seller may rely upon without further inquiry or
investigation. Neither an Opinion of Counsel nor a certification will be
required in connection with the initial transfer of any such Note by the
Depositor to an affiliate of the Depositor (in which case, the Depositor or any
affiliate thereof shall have deemed to have represented that such affiliate is
not a Plan or a Person investing Plan Assets of any Plan) and the Owner Trustee
shall be entitled to conclusively rely upon a representation (which, upon the
request of the Owner Trustee, shall be a written representation) from the
Depositor of the status of such transferee as an affiliate of the Depositor.

         No person shall become a Non-Offered Noteholder, so long as any Notes
are Outstanding, until it shall establish its status as a real estate investment
trust ("REIT") or as a "qualified REIT subsidiary" ("QRS") within the meaning of
Section 856(a) or Section 856(i) of the Code, respectively, by submitting to the
Note Registrar and the Owner Trustee and the Transferee Certificate set forth in
Exhibit H to the Indenture.

         No offer, sale, transfer, pledge, hypothecation or other disposition
(including any pledge, sale or transfer under a repurchase transaction or
securities loan) of any Non-Offered Note shall be made to any transferee unless,
prior to such disposition, the proposed transferor delivers to the Note
Registrar (i) an Opinion of Counsel, rendered by a law firm generally recognized
to be qualified to opine concerning the tax aspects of asset securitization, to
the effect that such transfer (including any disposition permitted following any
default under any pledge or repurchase transaction) will not cause the Trust to
be no longer be treated for federal income tax purposes as a "qualified REIT
subsidiary" within the meaning of Section 856(i) of the Code and (ii) a
certificate that stating that any Non-Offered Notes may be transferred by the
related lender under any such related loan agreement or repurchase agreement
upon a default under any such indebtedness, in which case the transferor shall
deliver to the Note Registrar, the Owner Trustee and the Indenture Trustee
substantially in the form attached as Exhibit I to the Indenture certifying to
such effect. Notwithstanding the foregoing, the provisions of this paragraph
shall not apply to the initial transfer of the Non-Offered Notes to the
Depositor.

         Unless the Certificate of Authentication hereon has been executed by
the Indenture Trustee by manual signature, this Note shall not be entitled to
any benefit under the Indenture, or be valid or obligatory for any purpose.

         Anything herein to the contrary notwithstanding, except as expressly
provided in the Basic Documents, neither the Owner Trustee in its individual
capacity, nor any of its respective partners, beneficiaries, agents, officers,
directors, employees, or successors or assigns, shall be personally liable for,
nor shall recourse be had to any of them for, the payment of principal of [or
interest on,] or performance of, or omission to perform, any of the covenants,
obligations or indemnifications contained in this Note, it being expressly
understood that said covenants, obligations and indemnifications have been made
solely by the Trust to the extent of the assets of the Trust. The holder of this
Note by the acceptance hereof agrees that, except as expressly provided in the
Basic Documents, the Holder shall have no claim against any of the foregoing for
any deficiency, loss or claim therefrom; provided, however, that nothing
contained herein shall be taken to prevent recourse to, and enforcement against,
the assets of the Trust Estate for any and all liabilities, obligations and
undertakings contained in this Note.

         AS PROVIDED IN THE INDENTURE, THIS NOTE AND THE INDENTURE CREATING THIS
NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH, AND GOVERNED BY, THE LAWS OF THE
STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED THEREIN.

<PAGE>

         IN WITNESS WHEREOF, the Issuer has caused this instrument to be duly
executed by M&T Trust Company of Delaware, not in its individual capacity but
solely as Owner Trustee.

Dated: June 22, 2005

                                             AMERICAN HOME MORTGAGE INVESTMENT
                                             TRUST 2005-2

                                             BY: WILMINGTON TRUST COMPANY, not
                                                 in its individual capacity but
                                                 solely in its capacity as Owner
                                                 Trustee

                                             By:
                                                 -------------------------------
                                                 Authorized Signatory

                INDENTURE TRUSTEE'S CERTIFICATE OF AUTHENTICATION

This is one of the Class [[V-]B] Notes referred to in the within-mentioned
Indenture.

DEUTSCHE BANK NATIONAL TRUST COMPANY , as Indenture Trustee

By:
    ------------------------
    Authorized Signatory

<PAGE>

                                  ABBREVIATIONS

         The following abbreviations, when used in the inscription on the face
of the Note, shall be construed as though they were written out in full
according to applicable laws or regulations:

           TEN COM       --  as tenants in common
           TEN ENT       --  as tenants by the entireties
           JT TEN        --  as joint tenants with right of survivorship and not
                             as tenants in common
      UNIF GIFT MIN ACT  --  __________ Custodian ______________________________
                               (Cust)                          (Minor)

                             under Uniform Gifts to Minor Act __________________
                                                                    (State)

ADDITIONAL ABBREVIATIONS MAY ALSO BE USED THOUGH NOT IN THE ABOVE LIST.

<PAGE>

                                   ASSIGNMENT

          FOR VALUE RECEIVED, THE UNDERSIGNED HEREBY SELLS, ASSIGNS AND
                                 TRANSFERS UNTO

          PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF
                                    ASSIGNEE:

  (PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS, INCLUDING ZIP CODE, OF ASSIGNEE)

_____________________________________________________________________________
the within Note and all rights thereunder, and hereby irrevocably constitutes
and appoints ________________________ attorney to transfer said Note on the
books kept for registration thereof, with full power of substitution in the
premises.

Dated: ________________________    _____________________________________________

Signature Guaranteed by ________________________________________________________

NOTICE: The signature(s) to this assignment must correspond with the name as it
appears upon the face of the within Note in every particular, without alteration
or enlargement or any change whatsoever. Signature(s) must be guaranteed by a
commercial bank or by a member firm of the New York Stock Exchange or another
national securities exchange. Notarized or witnessed signatures are not
acceptable.

<PAGE>

                                   EXHIBIT A-4

                                 CLASS N-_ NOTES

THIS NOTE IS SUBORDINATED IN RIGHT OF PAYMENT TO THE CLASS A, CLASS M, CLASS B,
CLASS V-M AND CLASS V-B NOTES AS DESCRIBED IN THE INDENTURE.

THE HOLDER OF THIS NOTE OR BENEFICIAL OWNER OF ANY INTEREST HEREIN WILL BE
DEEMED TO REPRESENT TO ONE OF THE REPRESENTATIONS CONTAINED IN SECTION 4.15 OF
THE INDENTURE.

THIS NOTE IS A NON-RECOURSE OBLIGATION OF THE ISSUER, AND IS LIMITED IN RIGHT OF
PAYMENT TO AMOUNTS AVAILABLE FROM THE TRUST ESTATE AS PROVIDED IN THE INDENTURE
REFERRED TO BELOW. THE ISSUER IS NOT OTHERWISE PERSONALLY LIABLE FOR PAYMENTS ON
THIS NOTE.

PRINCIPAL OF THIS NOTE IS PAYABLE OVER TIME AS SET FORTH HEREIN. ACCORDINGLY,
THE OUTSTANDING PRINCIPAL OF THIS NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT
SHOWN ON THE FACE HEREOF.

NO TRANSFER OF THIS NOTE SHALL BE MADE UNLESS THE NOTE REGISTRAR SHALL HAVE
RECEIVED EITHER (I) A REPRESENTATION LETTER FROM THE TRANSFEREE OF THIS NOTE TO
THE EFFECT THAT SUCH TRANSFEREE IS NOT AN EMPLOYEE BENEFIT PLAN OR OTHER PLAN
SUBJECT TO THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED
("ERISA"), OR SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE
"CODE"), OR A PERSON ACTING ON BEHALF OF ANY SUCH PLAN OR USING THE ASSETS OF
ANY SUCH PLAN, OR (II) IF THIS NOTE IS PRESENTED FOR REGISTRATION IN THE NAME OF
A PLAN SUBJECT TO ERISA OR SECTION 4975 OF THE CODE (OR COMPARABLE PROVISIONS OF
ANY SUBSEQUENT ENACTMENTS), OR A TRUSTEE OF ANY SUCH PLAN, OR ANY OTHER PERSON
WHO IS USING THE ASSETS OF ANY SUCH PLAN TO EFFECT SUCH ACQUISITION, AN OPINION
OF COUNSEL TO THE EFFECT THAT THE PURCHASE OF NOTES, OPERATION OF TRUST AND
MANAGEMENT OF TRUST ASSETS ARE PERMISSIBLE UNDER APPLICABLE LAW, WILL NOT
CONSTITUTE OR RESULT IN ANY PROHIBITED TRANSACTION UNDER ERISA OR SECTION 4975
OF THE CODE AND WILL NOT SUBJECT THE DEPOSITOR, THE SELLER, THE OWNER TRUSTEE,
THE INDENTURE TRUSTEE, THE NOTE REGISTRAR, THE SECURITIES ADMINISTRATOR, THE
RMBS MASTER SERVICER, THE HELOC BACK-UP SERVICER, THE RMBS SERVICER OR THE HELOC
SERVICER TO ANY OBLIGATION OR LIABILITY (INCLUDING OBLIGATIONS OR LIABILITIES
UNDER ERISA OR SECTION 4975 OF THE CODE) IN ADDITION TO THOSE UNDERTAKEN IN THE
TRUST AGREEMENT, WHICH OPINION OF COUNSEL SHALL NOT BE AN EXPENSE OF THE
DEPOSITOR, THE SELLER, THE OWNER TRUSTEE, THE INDENTURE TRUSTEE, THE NOTE
REGISTRAR, THE RMBS MASTER SERVICER, THE SECURITIES ADMINISTRATOR, THE HELOC
BACK-UP SERVICER, THE RMBS SERVICER OR THE HELOC SERVICER.

<PAGE>

                 AMERICAN HOME MORTGAGE INVESTMENT TRUST 2005-2
                      MORTGAGE-BACKED NOTES, SERIES 2005-2
                                    CLASS N-_

AGGREGATE NOTE PRINCIPAL                               NOTE INTEREST
BALANCE: $[_______________]                            RATE: [_____]%

INITIAL NOTE PRINCIPAL                                 NOTE NO.  1
BALANCE OF THIS NOTE: $[_____________]

PERCENTAGE INTEREST: 100%                              CUSIP NO: [_____________]

         American Home Mortgage Investment Trust 2005-2 (the "Issuer"), a
Delaware statutory trust, for value received, hereby promises to pay to
[________] or registered assigns, the principal sum of $[_______________] in
monthly installments on the twenty-fifth day of each month or, if such day is
not a Business Day, the next succeeding Business Day (each a "Payment Date"),
commencing in July 2005 and ending on or before the Payment Date occurring in
_____________ (the "Final Scheduled Payment Date") and to pay interest on the
Note Principal Balance of this Note (this "Note") outstanding from time to time
as provided below.

         This Note is one of a duly authorized issue of the Issuer's
Mortgage-Backed Notes, Series 2005-2 (the "Notes"), issued under an Indenture
dated as of June 22, 2005 (the "Indenture"), between the Issuer, Deutsche Bank
National Trust Company, as indenture trustee (the "Indenture Trustee") and Wells
Fargo Bank, N.A., as securities administrator (the "Securities Administrator"),
to which Indenture and all indentures supplemental thereto reference is hereby
made for a statement of the respective rights thereunder of the Issuer, the
Indenture Trustee and the Holders of the Notes and the terms upon which the
Notes are to be authenticated and delivered. All terms used in this Note which
are defined in the Indenture shall have the meanings assigned to them in the
Indenture.

         To the extent of remaining related Net Monthly Excess Cashflow,
payments of principal and interest on this Note will be made on each Payment
Date to the Noteholder of record as of the related Record Date. The "Note
Principal Balance" of a Note as of any date of determination is equal to the
initial Note Principal Balance thereof, reduced by the aggregate of all amounts
previously paid with respect to such Note on account of principal.

         The principal of, and interest on, this Note are due and payable as
described in the Indenture, in such coin or currency of the United States of
America as at the time of payment is legal tender for payment of public and
private debts. All payments made by the Issuer with respect to this Note shall
be equal to this Note's pro rata share of the aggregate payments on all Class
N-_ Notes as described above, and shall be applied as between interest and
principal as provided in the Indenture.

         All principal and interest accrued on the Notes, if not previously
paid, will become finally due and payable at the Final Scheduled Payment Date.

         [The Majority Certificateholder shall have the option to purchase the
assets of the Trust related to Loan Group I, Loan Group II-C, Loan Group II-NC,
Loan Group III, Loan Group IV and Loan Group V and thereby redeem the Class I-A,
Class II-A, Class III-A, Class IV-A, Class V-A, Class M, Class B, Class V-M,
Class V-B and Class N Notes on or after the Payment Date on which the Stated
Principal Balance of the related Mortgage Loans, and properties acquired in
respect thereof has been reduced to less than 10% of the sum of the Group I,
Group II-C, Group II-NC, Group III, Group IV and Group V Cut-off Date Balance;
provided, however, that no such redemption shall occur unless (i) the Note
Insurer is reimbursed for all payments made by the Note Insurer under the Note
Insurance Policy with respect to the Class V-A-4-D Notes, including interest
thereon, to the extent not previously paid or reimbursed and (ii) the Note
Insurer is reimbursed for any payments made by the Note Insurer under the Note
Insurance Policy with respect to the Class V-A-4-D Notes, including interest
thereon, as a result of such redemption.] [The Majority Certificateholder shall
have the option to purchase the assets of the Trust related to Loan Group I,
Loan Group II-C, Loan Group II-NC, Loan Group III and Loan Group IV and thereby
redeem the Class I-A, Class II-A, Class III-A, Class IV-A, Class M, Class B and
Class N Notes on or after the Payment Date on which the Stated Principal Balance
of the Mortgage Loans, and properties acquired in respect thereof has been
reduced to less than 10% of the sum of the Group I, Group II-C, Group II-NC,
Group III and Group IV Cut-off Date Balance; provided, however, that no such
redemption shall occur unless (i) the Note Insurer is reimbursed for all
payments made by the Note Insurer under the Note Insurance Policy with respect
to the Class V-A-4-D Notes, including interest thereon, to the extent not
previously paid or reimbursed and (ii) the Note Insurer is reimbursed for any
payments made by the Note Insurer under the Note Insurance Policy with respect
to the Class V-A-4-D Notes, including interest thereon, as a result of such
redemption; and provided, further, that no such optional termination may be
exercised unless an opinion has been rendered by nationally recognized tax
counsel that such optional termination will not adversely affect the
characterization as indebtedness of any class of Notes currently outstanding.]
[The Majority Certificateholder shall have the option to purchase the assets of
the Trust related to Loan Group V and thereby redeem the Class V-A, Class V-M,
Class V-B and Class N Notes on or after the Payment Date on which the Stated
Principal Balance of the related Mortgage Loans, and properties acquired in
respect thereof has been reduced to less than 10% of the Group V Cut-off Date
Balance; provided, however, that no such redemption shall occur unless (i) the
Note Insurer is reimbursed for all payments made by the Note Insurer under the
Note Insurance Policy with respect to the Class V-A-4-D Notes, including
interest thereon, to the extent not previously paid or reimbursed and (ii) the
Note Insurer is reimbursed for any payments made by the Note Insurer under the
Note Insurance Policy with respect to the Class V-A-4-D Notes, including
interest thereon, as a result of such redemption; and provided, further, that no
such optional termination may be exercised unless an opinion has been rendered
by nationally recognized tax counsel that such optional termination will not
adversely affect the characterization as indebtedness of any class of Notes
currently outstanding.]

         The Issuer shall not be liable upon the indebtedness evidenced by the
Notes except to the extent of amounts available from the Trust Estate which
constitutes security for the payment of the Notes. The assets included in the
Trust Estate will be the sole source of payments on the Class N-_ Notes, and
each Holder hereof, by its acceptance of this Note, agrees that (i) such Note
will be limited in right of payment to amounts available from the Trust Estate
as provided in the Indenture and (ii) such Holder shall have no recourse to the
Issuer, the Owner Trustee, the Indenture Trustee, the Depositor, the Securities
Administrator, the Seller, the RMBS Master Servicer, any Servicer or any of
their respective affiliates, or to the assets of any of the foregoing entities,
except the assets of the Issuer pledged to secure the Class N-_ Notes pursuant
to the Indenture and the rights conveyed to the Issuer under the Indenture.

         Any payment of principal or interest payable on this Note which is
punctually paid on the applicable Payment Date shall be paid to the Person in
whose name such Note is registered at the close of business on the Record Date
for such Payment Date by check mailed to such person's address as it appears in
the Note Register on such Record Date, except for the final installment of
principal and interest payable with respect to such Note, which shall be payable
as provided below. Notwithstanding the foregoing, upon written request with
appropriate instructions by the Holder of this Note delivered to the Indenture
Trustee at least five Business Days prior to the Record Date, any payment of
principal or interest, other than the final installment of principal or
interest, shall be made by wire transfer to an account in the United States
designated by such Holder. All reductions in the principal amount of a Note
effected by payments of principal made on any Payment Date shall be binding upon
all Holders of this Note and of any note issued upon the registration of
transfer thereof or in exchange therefor or in lieu thereof, whether or not such
payment is noted on such Note. The final payment of this Note shall be payable
upon presentation and surrender thereof on or after the Payment Date thereof at
the Corporate Trust Office or the office or agency of the Issuer maintained by
it for such purpose pursuant to Section 3.02 of the Indenture.

         Subject to the foregoing provisions, each Note delivered under the
Indenture, upon registration of transfer of or in exchange for or in lieu of any
other Note, shall carry the right to unpaid principal and interest that were
carried by such other Note.

         If an Event of Default as defined in the Indenture shall occur and be
continuing with respect to the Notes, the Notes may become or be declared due
and payable in the manner and with the effect provided in the Indenture. If any
such acceleration of maturity occurs prior to the payment of the entire unpaid
Note Principal Balance of the Notes, the amount payable to the Holder of this
Note will be equal to the sum of the unpaid Note Principal Balance of this Note,
together with accrued and unpaid interest thereon as described in the Indenture.
The Indenture provides that, notwithstanding the acceleration of the maturity of
the Notes, under certain circumstances specified therein, all amounts collected
as proceeds of the Trust Estate securing the Notes or otherwise shall continue
to be applied to payments of principal of and interest on the Notes as if they
had not been declared due and payable.

         As provided in the Indenture and subject to certain limitations therein
set forth, the transfer of this Note may be registered on the Note Register of
the Issuer. Upon surrender for registration of transfer of, or presentation of a
written instrument of transfer for, this Note at the office or agency designated
by the Issuer pursuant to the Indenture, accompanied by proper instruments of
assignment in form satisfactory to the Indenture Trustee, one or more new Notes
of any authorized denominations and of a like aggregate then outstanding Note
Principal Balance, will be issued to the designated transferee or transferees.

         Prior to the due presentment for registration of transfer of this Note,
the Issuer, the Indenture Trustee and any agent of the Issuer or the Indenture
Trustee may treat the Person in whose name this Note is registered as the owner
of such Note (i) on the applicable Record Date for the purpose of making
payments and interest of such Note, and (ii) on any other date for all other
purposes whatsoever, as the owner hereof, whether or not this Note be overdue,
and neither the Issuer, the Indenture Trustee nor any such agent of the Issuer
or the Indenture Trustee shall be affected by notice to the contrary.

         The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Issuer and the rights of the Holders of the Notes under the Indenture at any
time by the Issuer and the Holders of a majority of each Class of Notes affected
thereby. The Indenture also contains provisions permitting the Holders of Notes
representing not less than a majority of the aggregate Note Principal Balance of
the Notes, to waive any past Event of Default and its consequences except an
Event of Default (a) with respect to payment of principal of or interest on any
of the Notes, or (b) in respect of a covenant or provision of the Indenture
which cannot be modified or amended without the consent of the Holder of each
Note. Any such waiver by the Holder, at the time of the giving thereof, of this
Note (or any one or more predecessor Notes) shall bind the Holder of every Note
issued upon the registration of transfer hereof or in exchange hereof or in lieu
hereof, whether or not notation of such consent or waiver is made upon such
Note. The Indenture also permits the Issuer and the Indenture Trustee, following
prior notice to the Rating Agencies, to amend or waive certain terms and
conditions set forth in the Indenture without the consent of the Holders of the
Notes issued thereunder.

         Initially, the Notes will be registered in the name of ____________.
The Notes are exchangeable for a like aggregate then outstanding Note Principal
Balance of Notes of different authorized denominations, as requested by the
Holder surrendering same.

         [No transfer, sale, pledge or other disposition of a Certificate shall
be made unless such transfer, sale, pledge or other disposition is exempt from
the registration requirements of the Securities Act and any applicable state
securities laws or is made in accordance with said Act and laws. In the event of
any such transfer, the Certificate Registrar or the Depositor shall prior to
such transfer require the transferee to execute (A) either (i) (a) an investment
letter in substantially the form attached to the Agreement as Exhibit C (or in
such form and substance reasonably satisfactory to the Certificate Registrar and
the Depositor) which investment letter shall not be an expense of the Trust, the
Owner Trustee, the Indenture Trustee, the Securities Administrator, the
Certificate Registrar, the RMBS Master Servicer, the HELOC Back-Up Servicer, the
RMBS Servicer, the HELOC Back-Up Servicer, the Seller or the Depositor and which
investment letter states that, among other things, such transferee (1) is a
"qualified institutional buyer" as defined under Rule 144A, acting for its own
account or the accounts of other "qualified institutional buyers" as defined
under Rule 144A, and (2) is aware that the proposed transferor intends to rely
on the exemption from registration requirements under the Securities Act of
1933, as amended, provided by Rule 144A or (ii) (a) a written Opinion of Counsel
acceptable to and in form and substance satisfactory to the Certificate
Registrar and the Depositor that such transfer may be made pursuant to an
exemption, describing the applicable exemption and the basis therefor, from said
Act and laws or is being made pursuant to said Act and laws, which Opinion of
Counsel shall not be an expense of the Trust, the Owner Trustee, the Indenture
Trustee, the Securities Administrator, the Certificate Registrar, the RMBS
Master Servicer, the HELOC Back-Up Servicer, the RMBS Servicer, the HELOC
Back-Up Servicer, the Seller or the Depositor and (b) the transferee executes a
representation letter, substantially in the form of Exhibit D to the Indenture,
and the transferor executes a representation letter, substantially in the form
of Exhibit E to the Indenture, each acceptable to and in form and substance
satisfactory to the Indenture Trustee and the Depositor certifying the facts
surrounding such transfer, which representation letters shall not be an expense
of the Trust, the Owner Trustee, the Indenture Trustee, the Securities
Administrator, the Certificate Registrar, the RMBS Master Servicer, the HELOC
Back-Up Servicer, the RMBS Servicer, the HELOC Back-Up Servicer, the Seller or
the Depositor acceptable to and in form and substance reasonably satisfactory to
the Indenture Trustee and the Depositor, which certificate shall not be an
expense of the Trust, the Owner Trustee, the Indenture Trustee, the Securities
Administrator, the Certificate Registrar, the RMBS Master Servicer, the HELOC
Back-Up Servicer, the RMBS Servicer, the HELOC Back-Up Servicer, the Seller or
the Depositor. The Holder of a Note desiring to effect such transfer shall, and
does hereby agree to, indemnify the Trust, the Owner Trustee, the Indenture
Trustee, the Certificate Paying Agent, the Certificate Registrar, the RMBS
Master Servicer, the HELOC Back-Up Servicer, the RMBS Servicer, the HELOC
Servicer and the Depositor against any liability that may result if the transfer
is not so exempt or is not made in accordance with such federal and state laws.]

         [No transfer of Notes or any interest therein shall be made to any
Person unless the Depositor, the Owner Trustee, the Securities Administrator,
the Certificate Registrar, the RMBS Master Servicer, the HELOC Back-Up Servicer,
the RMBS Servicer, the HELOC Back-Up Servicer and the Seller are provided with
an Opinion of Counsel which establishes to the satisfaction of the Depositor,
the Owner Trustee, the Indenture Trustee and the Certificate Registrar that the
purchase of Notes is permissible under applicable law, will not constitute or
result in any prohibited transaction under ERISA or Section 4975 of the Code and
will not subject the Depositor, the Owner Trustee, the Indenture Trustee, the
Securities Administrator, the Certificate Registrar, the RMBS Master Servicer,
the HELOC Back-Up Servicer, the RMBS Servicer, the HELOC Back-Up Servicer or the
Seller to any obligation or liability (including obligations or liabilities
under ERISA or Section 4975 of the Code) in addition to those undertaken in the
Trust Agreement, which Opinion of Counsel shall not be an expense of the
Depositor, the Owner Trustee, the Indenture Trustee, the Securities
Administrator, the Certificate Registrar, the RMBS Master Servicer, the HELOC
Back-Up Servicer, the RMBS Servicer, the HELOC Back-Up Servicer or the Seller.
In lieu of such Opinion of Counsel, a Person may provide a certification in the
form of Exhibit G to the Agreement, which the Depositor, the Owner Trustee, the
Indenture Trustee, the Securities Administrator, the Certificate Registrar, the
RMBS Master Servicer, the HELOC Back-Up Servicer, the RMBS Servicer, the HELOC
Back-Up Servicer and the Seller may rely upon without further inquiry or
investigation. Neither an Opinion of Counsel nor a certification will be
required in connection with the initial transfer of any such Note by the
Depositor to an affiliate of the Depositor (in which case, the Depositor or any
affiliate thereof shall have deemed to have represented that such affiliate is
not a Plan or a Person investing Plan Assets of any Plan) and the Owner Trustee
shall be entitled to conclusively rely upon a representation (which, upon the
request of the Owner Trustee, shall be a written representation) from the
Depositor of the status of such transferee as an affiliate of the Depositor.]

         Unless the Certificate of Authentication hereon has been executed by
the Indenture Trustee by manual signature, this Note shall not be entitled to
any benefit under the Indenture, or be valid or obligatory for any purpose.

         Anything herein to the contrary notwithstanding, except as expressly
provided in the Basic Documents, neither the Owner Trustee in its individual
capacity, nor any of its respective partners, beneficiaries, agents, officers,
directors, employees, or successors or assigns, shall be personally liable for,
nor shall recourse be had to any of them for, the payment of principal of or
interest on, or performance of, or omission to perform, any of the covenants,
obligations or indemnifications contained in this Note, it being expressly
understood that said covenants, obligations and indemnifications have been made
solely by the Trust to the extent of the assets of the Trust. The holder of this
Note by the acceptance hereof agrees that, except as expressly provided in the
Basic Documents, the Holder shall have no claim against any of the foregoing for
any deficiency, loss or claim therefrom; provided, however, that nothing
contained herein shall be taken to prevent recourse to, and enforcement against,
the assets of the Trust Estate for any and all liabilities, obligations and
undertakings contained in this Note.

         AS PROVIDED IN THE INDENTURE, THIS NOTE AND THE INDENTURE CREATING THIS
NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH, AND GOVERNED BY, THE LAWS OF THE
STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED THEREIN.

<PAGE>

         IN WITNESS WHEREOF, the Issuer has caused this instrument to be duly
executed by M&T Trust Company of Delaware, not in its individual capacity but
solely as Owner Trustee.

Dated: June 22, 2005

                                             AMERICAN HOME MORTGAGE INVESTMENT
                                             TRUST 2005-2

                                             BY: WILMINGTON TRUST COMPANY, not
                                                 in its individual capacity but
                                                 solely in its capacity as Owner
                                                 Trustee

                                             By:
                                                 -------------------------------
                                                 Authorized Signatory

                INDENTURE TRUSTEE'S CERTIFICATE OF AUTHENTICATION

This is one of the Class N-_ Notes referred to in the within-mentioned
Indenture.

DEUTSCHE BANK NATIONAL TRUST COMPANY, as Indenture Trustee

By:
    -------------------------
    Authorized Signatory

<PAGE>

                                  ABBREVIATIONS

         The following abbreviations, when used in the inscription on the face
of the Note, shall be construed as though they were written out in full
according to applicable laws or regulations:

           TEN COM       --  as tenants in common
           TEN ENT       --  as tenants by the entireties
           JT TEN        --  as joint tenants with right of survivorship and not
                             as tenants in common
      UNIF GIFT MIN ACT  --  __________ Custodian ______________________________
                               (Cust)                          (Minor)

                             under Uniform Gifts to Minor Act __________________
                                                                    (State)

ADDITIONAL ABBREVIATIONS MAY ALSO BE USED THOUGH NOT IN THE ABOVE LIST.

<PAGE>

                                    EXHIBIT B

                             MORTGAGE LOAN SCHEDULE

                                (FILED MANUALLY)

<PAGE>

                                    EXHIBIT C

                              FORM OF CAP CONTRACT

                             [PROVIDED UPON REQUEST]

<PAGE>

                                    EXHIBIT D

                            FORM OF CORRIDOR CONTRACT

                             [PROVIDED UPON REQUEST]

<PAGE>

                                    EXHIBIT E

                            FORM OF INSURANCE POLICY

                             [PROVIDED UPON REQUEST]

<PAGE>

                                    EXHIBIT F

                     FORM OF SUBSEQUENT TRANSFER INSTRUMENT

         Pursuant to this Subsequent Transfer Instrument, dated [____________],
2005 (the "Instrument"), between American Home Mortgage Securities LLC, as
seller (the "Company"), and Deutsche Bank National Trust Company, as indenture
trustee of the American Home Mortgage Investment Trust 2005-2, Mortgage-Backed
Notes, Series 2005-2, (the "Indenture Trustee"), on behalf of American Home
Mortgage Investment Trust 2005-2 (the "Issuer"), as purchaser, and pursuant to
the Indenture, dated as of June 22, 2005 (the "Indenture"), among the Issuer,
the Indenture Trustee and Wells Fargo Bank, N.A., as the Securities
Administrator, the Company and the Indenture Trustee agree to the sale by the
Company and the purchase by the Indenture Trustee in trust, on behalf of the
Trust, of the Group [__] Subsequent Mortgage Loans on the attached Schedule 1 of
Mortgage Loans (the "Group [__] Subsequent Mortgage Loans").

         Capitalized terms used but not otherwise defined herein shall have the
meanings set forth in the Indenture.

         Section 1. Conveyance of Group [__] Subsequent Mortgage Loans;
Acceptance of Mortgage Loans by the Indenture Trustee.

         (a) The Company does hereby sell, transfer, assign, set over and convey
to the Indenture Trustee in trust, on behalf of the Trust, without recourse, all
of its right, title and interest in and to the Group [__] Subsequent Mortgage
Loans, including all amounts due on the Group [__] Subsequent Mortgage Loans
after the related Subsequent Cut-off Date, and all items with respect to the
Group I Subsequent Mortgage Loans to be delivered pursuant to Section 2. [__] of
the Indenture; provided, however that the Company reserves and retains all
right, title and interest in and to amounts due on the Group [__] Subsequent
Mortgage Loans on or prior to the related Subsequent Cut-off Date. The Company,
contemporaneously with the delivery of this Agreement, has delivered or caused
to be delivered to the Indenture Trustee each item set forth in Section 2.[__]of
the Indenture. The transfer to the Indenture Trustee by the Company of the Group
[__] Subsequent Mortgage Loans identified on the Mortgage Loan Schedule shall be
absolute and is intended by the Company, the [RMBS][HELOC] Master Servicer, the
Indenture Trustee and the Noteholders to constitute and to be treated as a sale
by the Company to the Trust Fund.

         (b) The Company, concurrently with the execution and delivery hereof,
does hereby transfer, assign, set over and otherwise convey to the Indenture
Trustee without recourse for the benefit of the Noteholders all the right, title
and interest of the Company, in, to and under the Subsequent Mortgage Loan
Purchase Agreement, dated [_________], 2005, between the Company, as purchaser,
and American Home Mortgage Acceptance Inc., as seller (the "Purchase
Agreement").

         (c) The Indenture Trustee shall acknowledge receipt of, subject to the
exceptions the Indenture Trustee notes pursuant to the procedures described in
Section 2.03 of the Indenture, the documents (or certified copies thereof)
referred to in Section 2.1(b) of the Subsequent Mortgage Loan Purchase
Agreement, and declares that it holds and will continue to hold those documents
and any amendments, replacements or supplements thereto and all other assets of
the Trust Estate in trust for the use and benefit of all present and future
Holders of the Notes.

         Additional terms of the sale are set forth on Attachment A hereto.

         Section 2. Representations and Warranties; Conditions Precedent.

         (a) The Company hereby confirms that each of the conditions and the
representations and warranties set forth in Sections 2.05, 2.06, 2.07, 2.08,
2.09, 2.10, 2.11, 2.12 and 2.13, as applicable, of the Indenture are satisfied
as of the date hereof.

         (b) All terms and conditions of the Indenture are hereby ratified and
confirmed; provided, however, that in the event of any conflict, the provisions
of this Instrument shall control over the conflicting provisions of the
Indenture.

         Section 3. Recordation of Instrument.

        To the extent permitted by applicable law, this Instrument, or a
memorandum thereof if permitted under applicable law, is subject to recordation
in all appropriate public offices for real property records in all of the
counties or other comparable jurisdictions in which any or all of the properties
subject to the Mortgages are situated, and in any other appropriate public
recording office or elsewhere, such recordation to be effected by the
[RMBS][HELOC] Master Servicer at the Noteholders' expense on direction of the
related Noteholders, but only when accompanied by an Opinion of Counsel to the
effect that such recordation materially and beneficially affects the interests
of the Noteholders or is necessary for the administration or servicing of the
Group [__] Subsequent Mortgage Loans.

         Section 4. Governing Law.

        This Instrument shall be construed in accordance with the laws of the
State of New York and the obligations, rights and remedies of the parties
hereunder shall be determined in accordance with such laws, without giving
effect to principles of conflicts of law.

         Section 5. COUNTERPARTS.

        This Instrument may be executed in one or more counterparts and by the
different parties hereto on separate counterparts, each of which, when so
executed, shall be deemed to be an original; such counterparts, together, shall
constitute one and the same instrument.

         Section 6. Successors and Assigns.

        This Instrument shall inure to the benefit of and be binding upon the
Company and the Indenture Trustee and their respective successors and assigns.

<PAGE>

AMERICAN HOME MORTGAGE SECURITIES LLC,
  as Seller

By:
    -----------------------------
Name:
Title:

DEUTSCHE BANK NATIONAL TRUST COMPANY,
  not in its individual capacity but solely
  as Indenture Trustee for the Trust.

By:
    -----------------------------
Name:
Title:

<PAGE>

                                    EXHIBIT G

                             FORM OF ADDITION NOTICE

                                                                [Date]
Deutsche Bank National Trust Company
1761 East St. Andrew Place
Santa Ana, California 92705

Ambac Assurance Corporation
One State Street Plaza
New York, NY 10004

Financial Guaranty Insurance Company
125 Park Avenue
New York, New York 10017

Wells Fargo Bank, N.A.
P.O. Box 98
Columbia, Maryland 21046

    RE:  Indenture, dated as of June 22, 2005 (the "Indenture"), between
         American Home Mortgage Investment Trust 2005-2, a Delaware business
         trust, as Issuer (the "Issuer"), Deutsche Bank National Trust Company,
         as Indenture Trustee (the "Indenture Trustee") and Wells Fargo Bank,
         N.A., as Securities Administrator (the "Securities Administrator"),
         relating to American Home Mortgage Investment Trust 2005-2,
         Mortgage-Backed Notes, Series 2005-2, Group I, Group II-C, Group II-NC,
         Group III, Group IV, Group V and Group VI Subsequent Transfer
         -----------------------------------------------------------------------

Ladies and Gentlemen:

         Pursuant to Section 2.05 of the Indenture, Issuer has designated the
Group I Subsequent Mortgage Loans to be transferred to the Indenture Trustee on
______________, 20__, with an approximate aggregate principal balance of
$________________.

         Pursuant to Section 2.06 of the Indenture, Issuer has designated the
Group II-C Subsequent Mortgage Loans to be transferred to the Indenture Trustee
on ______________, 20__, with an approximate aggregate principal balance of
$________________.

         Pursuant to Section 2.06 of the Indenture, Issuer has designated the
Group II-NC Subsequent Mortgage Loans to be transferred to the Indenture Trustee
on ______________, 20__, with an approximate aggregate principal balance of
$________________.

         Pursuant to Section 2.07 of the Indenture, Issuer has designated the
Group III Subsequent Mortgage Loans to be transferred to the Indenture Trustee
on ______________, 20__, with an approximate aggregate principal balance of
$________________.

         Pursuant to Section 2.08 of the Indenture, Issuer has designated the
Group IV Subsequent Mortgage Loans to be transferred to the Indenture Trustee on
______________, 20__, with an approximate aggregate principal balance of
$________________.

         Pursuant to Section 2.09 of the Indenture, Issuer has designated the
Group V Subsequent Mortgage Loans to be transferred to the Indenture Trustee on
______________, 20__, with an approximate aggregate principal balance of
$________________.

         Pursuant to Section 2.10 of the Indenture, Issuer has designated the
Group VI Subsequent HELOC Mortgage Loans to be transferred to the Indenture
Trustee on ______________, 20__, with an approximate aggregate principal balance
of $________________.

         Capitalized terms not otherwise defined herein have the meaning set
forth in the Indenture.

         Please acknowledge your receipt of this notice by countersigning the
enclosed copy in the space indicated below and returning it to the attention of
the undersigned.

<PAGE>

                                            Very truly yours,

                                            AMERICAN HOME MORTGAGE INVESTMENT
                                            TRUST 2005-2, as Issuer M&T Trust
                                            Company of Delaware, not in its
                                            individual capacity but solely as
                                            Owner Trustee

                                            By:
                                                --------------------------------
                                            Name:
                                            Title:

<PAGE>

ACKNOWLEDGED AND AGREED:

DEUTSCHE BANK NATIONAL TRUST COMPANY, not
in its individual capacity but solely
as Indenture Trustee for the Trust.

By:
    --------------------------------
Name:
Title:

<PAGE>

                                    EXHIBIT H

                          FORM OF INITIAL CERTIFICATION

                                                                 , 200_

AMERICAN HOME MORTGAGE SECURITIES, LLC
538 Broadhollow Road
Melville, New York 11747

DEUTSCHE BANK NATIONAL TRUST COMPANY
1761 East St. Andrew Place
Santa Ana, California 92705

AMERICAN HOME MORTGAGE SERVICING, INC.
7142 Columbia Gateway Drive
Columbia, Maryland 21046

Attention: American Home Mortgage Investment Trust 2005-2

    Re:  Indenture, dated as of June 22, 2005 (the "Indenture"), between
         American Home Mortgage Investment Trust 2005-2, a Delaware business
         trust, as Issuer (the "Issuer"), Deutsche Bank National Trust Company,
         as Indenture Trustee (the "Indenture Trustee") and Wells Fargo Bank,
         N.A., as Securities Administrator (the "Securities Administrator")

Ladies and Gentlemen:

                  In accordance with Section 2.03(a) of the Indenture and
Section 2.1(b)(i)-(v) of the Mortgage Loan Purchase Agreement, dated as of June
22, 2005, between American Home Mortgage Acceptance, Inc. and American Home
Mortgage Securities LLC (the "MLPA", and together with the Indenture, the
"Agreements"), the undersigned, as Indenture Trustee, hereby certifies that as
to each Mortgage Loan listed in the related Mortgage Loan Schedule (other than
any Mortgage Loan paid in full or listed on the exception report attached
hereto) it has reviewed the Mortgage File and the related Mortgage Loan Schedule
and has determined that: (i) all documents required to be included in the
Mortgage File pursuant to Section 2.1(b)(i)-(v) (except clause (v)(ii)) of the
MLPA are in its possession; (ii) such documents have been reviewed by it and
appear regular on their face and relate to such Mortgage Loan; and (iii) based
on examination by it, and only as to such documents, the information set forth
in items (iii) and (v) of the definition or description of "Mortgage Loan
Schedule" is correct.

                  The Indenture Trustee has made no independent examination of
any documents contained in each Mortgage File beyond the review specifically
required in the above-referenced Agreements. The Indenture Trustee makes no
representation that any documents specified in clauses (v)(ii) and (vi) of
Section 2.1 (b) of the MLPA should be included in any Mortgage File. The
Indenture Trustee makes no representations as to and shall not be responsible to
verify: (i) the validity, legality, sufficiency, enforceability, due
authorization, recordability or genuineness of any of the documents contained in
each Mortgage File of any of the Mortgage Loans identified on the related
Mortgage Loan Schedule, (ii) the collectability, insurability, effectiveness,
perfection, priority or suitability of any such Mortgage Loan, or (iii) the
existence of any hazard insurance policy or assumption, modification, written
assurance or substitution agreement with respect to any Mortgage File if no such
documents appear in the Mortgage File delivered to the Indenture Trustee.

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

                                                   DEUTSCHE BANK NATIONAL
                                                   TRUST COMPANY,
                                                   As Indenture Trustee

                                                   By:
                                                       -------------------------
                                                   Name:
                                                   Title:

<PAGE>

                                    EXHIBIT I

                           FORM OF FINAL CERTIFICATION

                                                               , 200__

AMERICAN HOME MORTGAGE SECURITIES, LLC
538 Broadhollow Road
Melville, New York 11747

DEUTSCHE BANK NATIONAL TRUST COMPANY
1761 East St. Andrew Place
Santa Ana, California 92705

AMERICAN HOME MORTGAGE SERVICING, INC.
7142 Columbia Gateway Drive
Columbia, Maryland 21046

Attention: American Home Mortgage Investment Trust 2005-2

    Re:  Indenture, dated as of June 22, 2005 (the "Indenture"), between
         American Home Mortgage Investment Trust 2005-2, a Delaware business
         trust, as Issuer (the "Issuer"), Deutsche Bank National Trust Company,
         as Indenture Trustee (the "Indenture Trustee") and Wells Fargo Bank,
         N.A., as Securities Administrator (the "Securities Administrator")

Ladies and Gentlemen:

                  In accordance with Section 2.03(a) of the Indenture and
Section 2.1(b)(i)-(v) of the Mortgage Loan Purchase Agreement, dated as of June
22, 2005, between American Home Mortgage Acceptance, Inc. and American Home
Mortgage Securities LLC (the "MLPA", and together with the Indenture, the
"Agreements"), the undersigned, as Indenture Trustee, hereby certifies that as
to each Mortgage Loan listed in the Mortgage Loan Schedule (other than any
Mortgage Loan paid in full or listed on the exception report attached hereto) it
has received the documents set forth in Section 2.1(b)(i)-(v) (except clause
(v)(ii)) of the MLPA.

                  The Indenture Trustee has made no independent examination of
any documents contained in each Mortgage File beyond the review specifically
required in the Agreements. The Indenture Trustee makes no representation that
any documents specified in clauses (v)(ii) and (vi) of Section 2.1 (b) should be
included in any Mortgage File. The Indenture Trustee makes no representations as
to and shall not be responsible to verify: (i) the validity, legality,
sufficiency, enforceability, due authorization, recordability or genuineness of
any of the documents contained in each Mortgage File of any of the Mortgage
Loans identified on the related Mortgage Loan Schedule, (ii) the collectability,
insurability, effectiveness, perfection, priority or suitability of any such
Mortgage Loan, or (iii) the existence of any hazard insurance policy or
assumption, modification, written assurance or substitution agreement with
respect to any Mortgage File if no such documents appear in the Mortgage File
delivered to the Indenture Trustee.

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

                                                    DEUTSCHE BANK NATIONAL
                                                    TRUST COMPANY,
                                                    as Indenture Trustee

                                                    By:
                                                        ------------------------
                                                    Name:
                                                    Title:

<PAGE>

                                    EXHIBIT J

                           FORM OF REQUEST FOR RELEASE

DATE:

TO:

RE:      REQUEST FOR RELEASE OF DOCUMENTS

In connection with your administration of the Mortgage Loans, we request the
release of the Mortgage File described below.

Servicing Agreement Dated:
Series #:
Account #:
Pool #:
Loan #:
Borrower Name(s):
Reason for Document Request: (circle one)          Mortgage Loan Prepaid in Full
                                                   Other
                                                   Mortgage Loan Repurchased

                       Please deliver the Mortgage File to

"We hereby certify that all amounts received or to be received in connection
with such payments which are required to be deposited have been deposited as
provided in the Servicing Agreement."

[Name of RMBS Master Servicer]
Authorized Signature
******************************************************************************
TO INDENTURE TRUSTEE: Please acknowledge this request, and check off documents
being enclosed with a copy of this form. You should retain this form for your
files in accordance with the terms of the Indenture.

             Enclosed Documents: [ ]  Promissory Note
                                 [ ]  Primary Insurance Policy
                                 [ ]  Mortgage or Deed of Trust
                                 [ ]  Assignment(s) of Mortgage or Deed of Trust
                                 [ ]  Title Insurance Policy
                                 [ ]  Other:
-------------------------
Name
-------------------------
Title
-------------------------
Date

<PAGE>

                                    EXHIBIT K

                   FORM OF RULE 144A INVESTMENT REPRESENTATION

             Description of Rule 144A Securities, including numbers:

         --------------------------------------------------------------

         --------------------------------------------------------------

         --------------------------------------------------------------

         --------------------------------------------------------------

         The undersigned seller, as registered holder (the "Seller"), intends to
transfer the Rule 144A Securities described above to the undersigned buyer (the
"Buyer").

         1. In connection with such transfer and in accordance with the
agreements pursuant to which the Rule 144A Securities were issued, the Seller
hereby certifies the following facts: Neither the Seller nor anyone acting on
its behalf has offered, transferred, pledged, sold or otherwise disposed of the
Rule 144A Securities, any interest in the Rule 144A Securities or any other
similar security to, or solicited any offer to buy or accept a transfer, pledge
or other disposition of the Rule 144A Securities, any interest in the Rule 144A
Securities or any other similar security from, or otherwise approached or
negotiated with respect to the Rule 144A Securities, any interest in the Rule
144A Securities or any other similar security with, any person in any manner, or
made any general solicitation by means of general advertising or in any other
manner, or taken any other action, that would constitute a distribution of the
Rule 144A Securities under the Securities Act of 1933, as amended (the "1933
Act"), or that would render the disposition of the Rule 144A Securities a
violation of Section 5 of the 1933 Act or require registration pursuant thereto,
and that the Seller has not offered the Rule 144A Securities to any person other
than the Buyer or another "qualified institutional buyer" as defined in Rule
144A under the 1933 Act.

         2. The Buyer warrants and represents to, and covenants with, the Owner
Trustee, the Note Registrar and the Depositor (as defined in the Indenture (the
"Agreement"), dated as of June 22, 2005, among American Home Mortgage Investment
Trust 2005-2, (the "Issuer"), Deutsche Bank National Trust Company, as Indenture
Trustee (the "Indenture Trustee"), and Wells Fargo Bank, N.A., as Securities
Administrator (the "Securities Administrator") pursuant to Section 4.02 of the
Agreement and Deutsche Bank National Trust Company, as indenture trustee, as
follows:

                  a. The Buyer understands that the Rule 144A Securities have
         not been registered under the 1933 Act or the securities laws of any
         state.

                  b. The Buyer considers itself a substantial, sophisticated
         institutional investor having such knowledge and experience in
         financial and business matters that it is capable of evaluating the
         merits and risks of investment in the Rule 144A Securities.

                  c. The Buyer has been furnished with all information regarding
         the Rule 144A Securities that it has requested from the Seller, the
         Indenture Trustee, the Owner Trustee, the RMBS Master Servicer, the
         HELOC Back-Up Servicer, the RMBS Servicer or the HELOC Servicer.

                  d. Neither the Buyer nor anyone acting on its behalf has
         offered, transferred, pledged, sold or otherwise disposed of the Rule
         144A Securities, any interest in the Rule 144A Securities or any other
         similar security to, or solicited any offer to buy or accept a
         transfer, pledge or other disposition of the Rule 144A Securities, any
         interest in the Rule 144A Securities or any other similar security
         from, or otherwise approached or negotiated with respect to the Rule
         144A Securities, any interest in the Rule 144A Securities or any other
         similar security with, any person in any manner, or made any general
         solicitation by means of general advertising or in any other manner, or
         taken any other action, that would constitute a distribution of the
         Rule 144A Securities under the 1933 Act or that would render the
         disposition of the Rule 144A Securities a violation of Section 5 of the
         1933 Act or require registration pursuant thereto, nor will it act, nor
         has it authorized or will it authorize any person to act, in such
         manner with respect to the Rule 144A Securities.

                  e. The Buyer is a "qualified institutional buyer" as that term
         is defined in Rule 144A under the 1933 Act and has completed either of
         the forms of certification to that effect attached hereto as Annex 1 or
         Annex 2. The Buyer is aware that the sale to it is being made in
         reliance on Rule 144A. The Buyer is acquiring the Rule 144A Securities
         for its own account or the accounts of other qualified institutional
         buyers, understands that such Rule 144A Securities may be resold,
         pledged or transferred only (i) to a person reasonably believed to be a
         qualified institutional buyer that purchases for its own account or for
         the account of a qualified institutional buyer to whom notice is given
         that the resale, pledge or transfer is being made in reliance on Rule
         144A, or (ii) pursuant to another exemption from registration under the
         1933 Act.

         3. The Buyer warrants and represents to, and covenants with, the
Seller, the Indenture Trustee, Owner Trustee, the Note Registrar, RMBS Master
Servicer, the Securities Administrator, the HELOC Back-Up Servicer, the RMBS
Servicer, the HELOC Servicer and the Depositor that either (1) the Buyer is (A)
not an employee benefit plan (within the meaning of Section 3(3) of the Employee
Retirement Income Security Act of 1974, as amended ("ERISA")), or a plan (within
the meaning of Section 4975(e)(1) of the Internal Revenue Code of 1986
("Code")), which (in either case) is subject to ERISA or Section 4975 of the
Code (each, a "Plan"), and (B) is not directly or indirectly purchasing the Rule
144A Securities on behalf of, as investment manager of, as named fiduciary of,
as trustee of, or with "plan assets" of a Plan, or (2) the Buyer understands
that registration of transfer of any Rule 144A Securities to any Plan, or to any
Person acting on behalf of any Plan, will not be made unless such Plan delivers
an opinion of its counsel, addressed and satisfactory to the Note Registrar and
the Depositor, to the effect (A) that the purchase and holding of the Rule 144A
Securities by, on behalf of or with "plan assets" of any Plan, (B) operation of
the Trust and (C) management of Trust assets are permissible under applicable
law, would not constitute or result in a prohibited transaction under ERISA or
Section 4975 of the Code, and would not subject the Depositor, the Owner
Trustee, the Indenture Trustee, the Note Registrar, the Securities
Administrator, the RMBS Master Servicer, the HELOC Back-Up Servicer, the RMBS
Servicer or the HELOC Servicer to any obligation or liability (including
liabilities under ERISA or Section 4975 of the Code) in addition to those
undertaken in the Agreement, which Opinion of Counsel shall not be an expense of
the Depositor, the Owner Trustee, the Note Registrar, the Indenture Trustee, the
Securities Administrator, the RMBS Master Servicer, the HELOC Back-Up Servicer,
the RMBS Servicer or the HELOC Servicer.

         4. This document may be executed in one or more counterparts and by the
different parties hereto on separate counterparts, each of which, when so
executed, shall be deemed to be an original; such counterparts, together, shall
constitute one and the same document.

         IN WITNESS WHEREOF, each of the parties has executed this document as
of the date set forth below.

----------------------------------          ----------------------------------
Print Name of Seller                        Print Name of Buyer

By:                                         By:
    ------------------------------              ------------------------------
      Name:                                       Name:
      Title:                                      Title:

Taxpayer Identification:                    Taxpayer Identification:

No.                                         No.
    ------------------------------              ------------------------------
Date:                                       Date:
      ----------------------------                ----------------------------

------------
(1) Buyer must own and/or invest on a discretionary basis at least $100,000,000
    in securities unless Buyer is a dealer, and, in that case, Buyer must own
    and/or invest on a discretionary basis at least $10,000,000 in securities.

<PAGE>

                                                            ANNEX 1 TO EXHIBIT K

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

             [FOR BUYERS OTHER THAN REGISTERED INVESTMENT COMPANIES]

         The undersigned hereby certifies as follows in connection with the Rule
144A Investment Representation to which this Certification is attached:

         1. As indicated below, the undersigned is the President, Chief
Financial Officer, Senior Vice President or other executive officer of the
Buyer.

         2. In connection with purchases by the Buyer, the Buyer is a "qualified
institutional buyer" as that term is defined in Rule 144A under the Securities
Act of 1933 ("Rule 144A") because (i) the Buyer owned and/or invested on a
discretionary basis $_______________(1) in securities (except for the excluded
securities referred to below) as of the end of the Buyer's most recent fiscal
year (such amount being calculated in accordance with Rule 144A) and (ii) the
Buyer satisfies the criteria in the category marked below.

  ___    CORPORATION, ETC. The Buyer is a corporation (other than a bank,
         savings and loan association or similar institution), Massachusetts or
         similar business trust, partnership, or charitable organization
         described in Section 501(c)(3) of the Internal Revenue Code.

  ___    BANK. The Buyer (a) is a national bank or banking institution organized
         under the laws of any State, territory or the District of Columbia, the
         business of which is substantially confined to banking and is
         supervised by the State or territorial banking commission or similar
         official or is a foreign bank or equivalent institution, and (b) has an
         audited net worth of at least $25,000,000 as demonstrated in its latest
         annual financial statements, a copy of which is attached hereto.

  ___    SAVINGS AND LOAN. The Buyer (a) is a savings and loan association,
         building and loan association, cooperative bank, homestead association
         or similar institution, which is supervised and examined by a State or
         Federal authority having supervision over any such institutions or is a
         foreign savings and loan association or equivalent institution and (b)
         has an audited net worth of at least $25,000,000 as demonstrated in its
         latest annual financial statements.

  ___    BROKER-DEALER.  The Buyer is a dealer registered pursuant to Section 15
         of the Securities Exchange Act of 1934.

  ___    INSURANCE COMPANY. The Buyer is an insurance company whose primary and
         predominant business activity is the writing of insurance or the
         reinsuring of risks underwritten by insurance companies and which is
         subject to supervision by the insurance commissioner or a similar
         official or agency of a State or territory or the District of Columbia.

  ___    STATE OR LOCAL PLAN. The Buyer is a plan established and maintained by
         a State, its political subdivisions, or any agency or instrumentality
         of the State or its political subdivisions, for the benefit of its
         employees.

  ___    ERISA PLAN. The Buyer is an employee benefit plan within the meaning of
         Title I of the Employee Retirement Income Security Act of 1974.

  ___    INVESTMENT ADVISER. The Buyer is an investment adviser registered under
         the Investment Advisers Act of 1940.

  ___    SBIC. The Buyer is a Small Business Investment Company licensed by the
         U.S. Small Business Administration under Section 301(c) or (d) of the
         Small Business Investment Act of 1958.

  ___    BUSINESS DEVELOPMENT COMPANY. The Buyer is a business development
         company as defined in Section 202(a)(22) of the Investment Advisers Act
         of 1940.

  ___    TRUST FUND. The Buyer is a trust fund whose trustee is a bank or trust
         company and whose participants are exclusively (a) plans established
         and maintained by a State, its political subdivisions, or any agency or
         instrumentality of the State or its political subdivisions, for the
         benefit of its employees, or (b) employee benefit plans within the
         meaning of Title I of the Employee Retirement Income Security Act of
         1974, but is not a trust fund that includes as participants individual
         retirement accounts or H.R. 10 plans.

         3. The term "SECURITIES" as used herein DOES NOT INCLUDE (i) securities
of issuers that are affiliated with the Buyer, (ii) securities that are part of
an unsold allotment to or subscription by the Buyer, if the Buyer is a dealer,
(iii) bank deposit Notes and certificates of deposit, (iv) loan participations,
(v) repurchase agreements, (vi) securities owned but subject to a repurchase
agreement and (vii) currency, interest rate and commodity swaps.

         4. For purposes of determining the aggregate amount of securities owned
and/or invested on a discretionary basis by the Buyer, the Buyer used the cost
of such securities to the Buyer and did not include any of the securities
referred to in the preceding paragraph. Further, in determining such aggregate
amount, the Buyer may have included securities owned by subsidiaries of the
Buyer, but only if such subsidiaries are consolidated with the Buyer in its
financial statements prepared in accordance with generally accepted accounting
principles and if the investments of such subsidiaries are managed under the
Buyer's direction. However, such securities were not included if the Buyer is a
majority-owned, consolidated subsidiary of another enterprise and the Buyer is
not itself a reporting company under the Securities Exchange Act of 1934.

         5. The Buyer acknowledges that it is familiar with Rule 144A and
understands that the seller to it and other parties related to the Certificates
are relying and will continue to rely on the statements made herein because one
or more sales to the Buyer may be in reliance on Rule 144A.

   ___    ___    Will the Buyer be purchasing the Rule 144A Securities only for
   Yes    No     the Buyer's own account?

         6. If the answer to the foregoing question is "no", the Buyer agrees
that, in connection with any purchase of securities sold to the Buyer for the
account of a third party (including any separate account) in reliance on Rule
144A, the Buyer will only purchase for the account of a third party that at the
time is a "qualified institutional buyer" within the meaning of Rule 144A. In
addition, the Buyer agrees that the Buyer will not purchase securities for a
third party unless the Buyer has obtained a current representation letter from
such third party or taken other appropriate steps contemplated by Rule 144A to
conclude that such third party independently meets the definition of "qualified
institutional buyer" set forth in Rule 144A.

         7. The Buyer will notify each of the parties to which this
certification is made of any changes in the information and conclusions herein.
Until such notice is given, the Buyer's purchase of Rule 144A Securities will
constitute a reaffirmation of this certification as of the date of such
purchase.

--------------------------------
Print Name of Buyer

By:
    ----------------------------
    Name:
    Title:

Date:
      --------------------------

<PAGE>

                                                            ANNEX 2 TO EXHIBIT K

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

              [FOR BUYERS THAT ARE REGISTERED INVESTMENT COMPANIES]

         The undersigned hereby certifies as follows in connection with the Rule
144A Investment Representation to which this Certification is attached:

                  1. As indicated below, the undersigned is the President, Chief
Financial Officer or Senior Vice President of the Buyer or, if the Buyer is a
"qualified institutional buyer" as that term is defined in Rule 144A under the
Securities Act of 1933 ("Rule 144A") because Buyer is part of a Family of
Investment Companies (as defined below), is such an officer of the Adviser.

                  2. In connection with purchases by Buyer, the Buyer is a
"qualified institutional buyer" as defined in SEC Rule 144A because (i) the
Buyer is an investment company registered under the Investment Company Act of
1940, and (ii) as marked below, the Buyer alone, or the Buyer's Family of
Investment Companies, owned at least $100,000,000 in securities (other than the
excluded securities referred to below) as of the end of the Buyer's most recent
fiscal year. For purposes of determining the amount of securities owned by the
Buyer or the Buyer's Family of Investment Companies, the cost of such securities
was used.

  ____            The Buyer owned $ ________________ in securities (other than
                  the excluded securities referred to below) as of the end of
                  the Buyer's most recent fiscal year (such amount being
                  calculated in accordance with Rule 144A).

  ____            The Buyer is part of a Family of Investment Companies which
                  owned in the aggregate $________________ in securities (other
                  than the excluded securities referred to below) as of the end
                  of the Buyer's most recent fiscal year (such amount being
                  calculated in accordance with Rule 144A).

                  3. The term "FAMILY OF INVESTMENT COMPANIES" as used herein
means two or more registered investment companies (or series thereof) that have
the same investment adviser or investment advisers that are affiliated (by
virtue of being majority owned subsidiaries of the same parent or because one
investment adviser is a majority owned subsidiary of the other).

                  4. The term "SECURITIES" as used herein does not include (i)
securities of issuers that are affiliated with the Buyer or are part of the
Buyer's Family of Investment Companies, (ii) bank deposit Notes and certificates
of deposit, (iii) loan participations, (iv) repurchase agreements, (v)
securities owned but subject to a repurchase agreement and (vi) currency,
interest rate and commodity swaps.

                  5. The Buyer is familiar with Rule 144A and understands that
each of the parties to which this certification is made are relying and will
continue to rely on the statements made herein because one or more sales to the
Buyer will be in reliance on Rule 144A. In addition, the Buyer will only
purchase for the Buyer's own account.

                  6. The undersigned will notify each of the parties to which
this certification is made of any changes in the information and conclusions
herein. Until such notice, the Buyer's purchase of Rule 144A Securities will
constitute a reaffirmation of this certification by the undersigned as of the
date of such purchase.

---------------------------------
Print Name of Buyer

By:
    -----------------------------
    Name:
    Title:

IF AN ADVISER:

---------------------------------
Print Name of Buyer

Date:
      ---------------------------

<PAGE>

                                    EXHIBIT L

                        CERTIFICATE OF NON-FOREIGN STATUS

         This Certificate of Non-Foreign Status ("certificate") is delivered
pursuant to Section 4.02 of the Indenture, dated as of June 22, 2005 (the
"Indenture"), among American Home Mortgage Investment Trust 2005-2, (the
"Issuer"), Deutsche Bank National Trust Company, as Indenture Trustee (the
"Indenture Trustee"), and Wells Fargo Bank, N.A., as Securities Administrator
(the "Securities Administrator"), in connection with the acquisition of,
transfer to or possession by the undersigned, whether as beneficial owner for
U.S. federal income tax purposes (the "Beneficial Owner"), or nominee on behalf
of the Beneficial Owner of the Class ____ Notes, Series 2005-2 (the "Note").
Capitalized terms used but not defined in this certificate have the respective
meanings given them in the Indenture.

         Each holder must complete Part I, Part II (if the holder is a nominee),
and in all cases sign and otherwise complete Part III.

         In addition, each holder shall submit with the Certificate an IRS Form
W-9 relating to such holder.

         To confirm to the Trust that the provisions of Sections 871, 881 or
1446 of the Internal Revenue Code (relating to withholding tax on foreign
partners) do not apply in respect of the Note held by the undersigned, the
undersigned hereby certifies:

Part I - Complete Either A or B

         A.       Individual as Beneficial Owner

                  1.       I am (The Beneficial Owner is) not a non-resident
                           alien for purposes of U.S. income taxation;

                  2.       My (The Beneficial Owner's) name and home address
                           are:

                                                              ; and

                  3.       My (The Beneficial Owner's) U.S. taxpayer
                           identification number (Social Security Number) is

         B.       Corporate, Partnership or Other Entity as Beneficial Owner

                  1.       (Name of the Beneficial Owner) is not a foreign
                           corporation, foreign partnership, foreign trust or
                           foreign estate (as those terms are defined in the
                           Code and Treasury Regulations;

                  2.       The Beneficial Owner's office address and place of
                           incorporation (if applicable) is ; and

                  3.       The Beneficial Owner's U.S. employer identification
                           number is .

Part II - Nominees

         If the undersigned is the nominee for the Beneficial Owner, the
undersigned certifies that this certificate has been made in reliance upon
information contained in:

                  an IRS Form W-9

                  a form such as this or substantially similar

provided to the undersigned by an appropriate person and (i) the undersigned
agrees to notify the Note Registrar at least thirty (30) days prior to the date
that the form relied upon becomes obsolete, and (ii) in connection with change
in Beneficial Owners, the undersigned agrees to submit a new Certificate of
Non-Foreign Status to the Note Registrar promptly after such change.

Part III - Declaration

         The undersigned, as the Beneficial Owner or a nominee thereof, agrees
to notify the Note Registrar within sixty (60) days of the date that the
Beneficial Owner becomes a foreign person. The undersigned understands that this
certificate may be disclosed to the Internal Revenue Service by the Note
Registrar and any false statement contained therein could be punishable by
fines, imprisonment or both.

         Under penalties of perjury, I declare that I have examined this
certificate and to the best of my knowledge and belief it is true, correct and
complete and will further declare that I will inform the Trust of any change in
the information provided above, and, if applicable, I further declare that I
have the authority* to sign this document.

--------------------------
Name

--------------------------
Title (if applicable)

--------------------------
Signature and Date

*Note: If signed pursuant to a power of attorney, the power of attorney must
accompany this certificate.

<PAGE>

                                    EXHIBIT M

                    FORM OF INVESTMENT LETTER [NON-RULE 144A]

                                     [DATE]

M&T Trust Company of Delaware, as Owner Trustee
[-------------]

Deutsche Bank National Trust Company
1761 E. St. Andrew Place
Santa Ana, CA 92705

    Re:  American Home Mortgage Investment Trust 2005-2 Non-Offered Notes,
         Series 2005-2, Class [___] (the "Non-Offered Notes")
         -----------------------------------------------------------------

Ladies and Gentlemen:

         In connection with our acquisition of the above-captioned Non-Offered
Notes, we certify that (a) we understand that the Non-Offered Notes are not
being registered under the Securities Act of 1933, as amended (the "Act"), or
any state securities laws and are being transferred to us in a transaction that
is exempt from the registration requirements of the Act and any such laws, (b)
we are an "accredited investor," as defined in Regulation D under the Act, and
have such knowledge and experience in financial and business matters that we are
capable of evaluating the merits and risks of investments in the Non-Offered
Notes, (c) we have had the opportunity to ask questions of and receive answers
from the Depositor concerning the purchase of the Non-Offered Notes and all
matters relating thereto or any additional information deemed necessary to our
decision to purchase the Non-Offered Notes, (d) we are not an employee benefit
plan that is subject to the Employee Retirement Income Security Act of 1974, as
amended, or a plan that is subject to Section 4975 of the Internal Revenue Code
of 1986, as amended, nor are we acting on behalf of any such plan, (e) we are
acquiring the Non-Offered Notes for investment for our own account and not with
a view to any distribution of such Non-Offered Notes (but without prejudice to
our right at all times to sell or otherwise dispose of the Non-Offered Notes in
accordance with clause (g) below), (f) we have not offered or sold any
Non-Offered Notes to, or solicited offers to buy any Non-Offered Notes from, any
person, or otherwise approached or negotiated with any person with respect
thereto, or taken any other action which would result in a violation of Section
5 of the Act, and (g) we will not sell, transfer or otherwise dispose of any
Non-Offered Notes unless (1) such sale, transfer or other disposition is made
pursuant to an effective registration statement under the Act or is exempt from
such registration requirements, and if requested, we will at our expense provide
an opinion of counsel satisfactory to the addressees of this certificate that
such sale, transfer or other disposition may be made pursuant to an exemption
from the Act, (2) the purchaser or transferee of such Non-Offered Note has
executed and delivered to you a certificate to substantially the same effect as
this certificate, and (3) the purchaser or transferee has otherwise complied
with any conditions for transfer set forth in the Indenture.

Very truly yours,

[TRANSFEREE]

By:
    --------------------------------
         Authorized Officer

<PAGE>

                                    EXHIBIT N

                             TRANSFEROR CERTIFICATE

M&T Trust Company of Delaware, as Owner Trustee
[__________________]

Deutsche Bank National Trust Company
1761 E. St. Andrew Place
Santa Ana, CA 92705

   Re:   Proposed Transfer of Non-Offered Notes, Class [___], American Home
         Mortgage Investment Trust 2005-2
         ------------------------------------------------------------------

Gentlemen:

         This certification is being made by ____________________ (the
"Transferor") in connection with the proposed Transfer to _____________________
(the "Transferee") of a non-offered note, Class [___] (the "Non-Offered Note")
representing ___% fractional undivided interest in American Home Mortgage
Investment Trust 2005-2 (the "Trust"), issued pursuant to an Indenture, dated as
of June 22, 2005 (the "Indenture"), among American Home Mortgage Investment
Trust 2005-2, (the "Issuer"), Deutsche Bank National Trust Company, as Indenture
Trustee (the "Indenture Trustee"), and Wells Fargo Bank, N.A., as Securities
Administrator (the "Securities Administrator"). Initially capitalized terms used
but not defined herein have the meanings assigned to them in Appendix A to the
Indenture. The Transferor hereby certifies, represents and warrants to, and
covenants with, the Company, the Owner Trustee and the Note Registrar that:

         Neither the Transferor nor anyone acting on its behalf has (a) offered,
pledged, sold, disposed of or otherwise transferred any Non-Offered Note, any
interest in any Non-Offered Note or any other similar security to any person in
any manner, (b) has solicited any offer to buy or to accept a pledge,
disposition or other transfer of any Non-Offered Note, any interest in any
Non-Offered Note or any other similar security from any person in any manner,
(c) has otherwise approached or negotiated with respect to any Non-Offered Note,
any interest in any Non-Offered Note or any other similar security with any
person in any manner, (d) has made any general solicitation by means of general
advertising or in any other manner, or (e) has taken any other action, that (as
to any of (a) through (e) above) would constitute a distribution of the
Non-Offered Notes under the Securities Act of 1933 (the "Act"), that would
render the disposition of any Non-Offered Note a violation of Section 5 of the
Act or any state securities law, or that would require registration or
qualification pursuant thereto. The Transferor will not act in any manner set
forth in the foregoing sentence with respect to any Non-Offered Note. The
Transferor has not and will not sell or otherwise transfer any of the
Non-Offered Notes, except in compliance with the provisions of the Indenture.

Date:
      ---------------------                        -----------------------------
                                                       Name of Transferor

                                                   -----------------------------
                                                       Signature

                                                   -----------------------------
                                                       Name

                                                   -----------------------------
                                                       Title

<PAGE>

                                    EXHIBIT O

                              FORM OF ERISA LETTER

                                     [DATE]

M&T Trust Company of Delaware, as Owner Trustee
[_______________]

Deutsche Bank National Trust Company
1761 E. St. Andrew Place
Santa Ana, CA 92705

    Re:  Proposed Transfer of Non-Offered Notes, Class [____], American Home
         Mortgage Investment Trust 2005-2 (The "Non-Offered Notes")
         -------------------------------------------------------------------

Gentlemen:

         This certification is being made by (the "Transferee") in connection
with the proposed Transfer by (the "Transferor") of non-offered note (the
"Non-Offered Note") representing __% fractional undivided interest in American
Home Mortgage Investment Trust 2005-2 (the "Trust"), issued pursuant to an
Indenture, dated as of June 22, 2005 (the "Indenture"), among American Home
Mortgage Investment Trust 2005-2, (the "Issuer"), Deutsche Bank National Trust
Company, as Indenture Trustee (the "Indenture Trustee"), and Wells Fargo Bank,
N.A., as Securities Administrator (the "Securities Administrator"). Initially
capitalized terms used but not defined herein have the meanings assigned to them
in Appendix A to the Indenture. The Transferor hereby certifies, represents and
warrants to, and covenants with, the Company, the Owner Trustee and the Note
Registrar that:

         (i) either (a) or (b) is satisfied, as marked below:

                  ___ a. The Transferor is not any employee benefit plan or
         other plan subject to the Employee Retirement Income Security Act of
         1974, as amended ("ERISA"), or Section 4975 of the Internal Revenue
         Code of 1986 (the "Code")(each, a "Plan"), a Person acting, directly or
         indirectly, on behalf of a Plan or any Person acquiring such
         Non-Offered Note with "plan assets" of a Plan within the meaning of the
         Department of Labor regulation promulgated at 29 C.F.R. ss.2510.3-101;
         or

                  ___ b. The Transferor is a Plan, a Person acting, directly or
         indirectly, on behalf of a Plan or a Person acquiring such Certificates
         with "plan assets" of a Plan within the meaning of the Department of
         Labor regulation promulgated at 29 C.F.R. ss.2510.3-101 and has
         provided the Depositor, the Owner Trustee, the Indenture Trustee, the
         Note Registrar, the Seller, the HELOC Back-Up Servicer and the HELOC
         Servicer with an Opinion of Counsel, satisfactory to the Note Registrar
         to the effect (A) that the purchase and holding of a Non-Offered Note
         by or on behalf of the Transferor (B) operation of the Trust and (C)
         management of Trust assets are permissible under applicable law, will
         not constitute or result in a prohibited transaction under Section 406
         of ERISA or Section 4975 of the Code (or comparable provisions of any
         subsequent enactments) and will not subject the Depositor, the Owner
         Trustee, the Indenture Trustee, the Note Registrar, the Seller, the
         RMBS Master Servicer, the HELOC Back-Up Servicer, the RMBS Servicer or
         the HELOC Servicer to any obligation or liability (including
         liabilities under ERISA or Section 4975 of the Code) in addition to
         those undertaken in the Indenture, which opinion of counsel shall not
         be an expense of the Depositor, the Owner Trustee, the Indenture
         Trustee, the Note Registrar, the Securities Administrator, the Seller,
         the RMBS Master Servicer, the HELOC Back-Up Servicer, the RMBS Servicer
         or the HELOC Servicer; and

         (ii) the Transferor is familiar with the prohibited transaction
         restrictions and fiduciary responsibility requirements of Sections 406
         and 407 of ERISA and Section 4975 of the Code and understands that each
         of the parties to which this certification is made is relying and will
         continue to rely on the statements made in this paragraph.

                                                 Very truly yours,

                                                    By:
                                                           ---------------------
                                                    Name:
                                                           ---------------------
                                                    Title:
                                                           ---------------------

<PAGE>

                                    EXHIBIT P

                         FORM OF TRANSFEREE CERTIFICATE

M&T Trust Company of Delaware, as Owner Trustee
[_______________]

Deutsche Bank National Trust Company
1761 E. St. Andrew Place
Santa Ana, CA 92705

   Re:   Proposed Transfer of Trust Non-Offered Notes, Class [____], American
         Home Mortgage Investment Trust 2005-2 (The "Non-Offered Notes")
         --------------------------------------------------------------------

Gentlemen:

         This certification is being made by (the "Transferee") in connection
with the proposed Transfer by (the "Transferor") of a non-offered note (the
"Non-Offered Note") representing __% fractional undivided interest in American
Home Mortgage Investment Trust 2005-2 (the "Trust"), issued pursuant to an
Indenture, dated as of June 22, 2005 (the "Indenture"), among American Home
Mortgage Investment Trust 2005-2, (the "Issuer"), Deutsche Bank National Trust
Company, as Indenture Trustee (the "Indenture Trustee"), and Wells Fargo Bank,
N.A., as Securities Administrator (the "Securities Administrator"). Initially
capitalized terms used but not defined herein have the meanings assigned to them
in Appendix A to the Indenture. The Transferor hereby certifies, represents and
warrants to, and covenants with, the Company, the Owner Trustee and the Note
Registrar that:

         The Transferee is a REIT or a Qualified REIT Subsidiary within the
meaning of Section 856(a) or Section 856(i) of the Code, respectively.

Date:
      ---------------------                        -----------------------------
                                                       Name of Transferee

                                                   -----------------------------
                                                       Signature

                                                   -----------------------------
                                                       Name

                                                   -----------------------------
                                                       Title

<PAGE>

                                    EXHIBIT Q

                      FORM OF LENDER TRANSFEROR CERTIFICATE

M&T Trust Company of Delaware, as Owner Trustee
[_______________]

Deutsche Bank National Trust Company,
  as Indenture Trustee
1761 East St. Andrew Place
Santa Ana, California 92705

   Re:   Proposed Transfer of Non-offered Notes, Class [____], American Home
         Mortgage Investment Trust 2005-2 (The "Non-offered Notes")
         -------------------------------------------------------------------

Gentlemen:

         This certification is being made by ___________ (the "Transferor") in
connection with the proposed pledge or transfer to __________ of Certificates
representing __% fractional undivided interest in American Home Mortgage
Investment Trust 2005-2, issued pursuant to an Indenture, dated as of June 22,
2005 (the "Indenture"), among American Home Mortgage Investment Trust 2005-2,
(the "Issuer"), Deutsche Bank National Trust Company, as Indenture Trustee (the
"Indenture Trustee"), and Wells Fargo Bank, N.A., as Securities Administrator
(the "Securities Administrator"). Initially capitalized terms used but not
defined herein have the meanings assigned to them in Appendix A to the
Indenture. The Transferor hereby certifies, represents and warrants to, and
covenants with, the Owner Trustee, the Indenture Trustee and the Note Registrar
that:

         (a) The Non-Offered Notes are being pledged by the Transferor to secure
indebtedness of [___________] or is the subject of a loan agreement or
repurchase agreement treated as secured indebtedness of [___________] for
federal income tax purposes as permitted under the Indenture; or

         (b) The Non-Offered Notes are being transferred by the related lender
under a loan agreement or repurchase agreement upon a default under any such
indebtedness as permitted under the Indenture.

Date:
      ---------------------                        -----------------------------
                                                       Name of Transferor

                                                   -----------------------------
                                                       Signature

                                                   -----------------------------
                                                       Name

                                                   -----------------------------
                                                       Title

<PAGE>

                                   APPENDIX A
                                   DEFINITIONS

         ACCEPTED MASTER SERVICING PRACTICES: With respect to any Mortgage Loan
other than a HELOC Mortgage Loan, those customary mortgage master servicing
practices of prudent mortgage servicing institutions that master service
mortgage loans of the same type and quality as such Mortgage Loan in the
jurisdiction where the related Mortgaged Property is located, to the extent
applicable to the Indenture Trustee or the RMBS Master Servicer (except in its
capacity as successor to the RMBS Servicer).

         ACCEPTED SERVICING PRACTICES: The HELOC Servicer's normal servicing
practices in servicing and administering revolving home equity line of credit
Mortgage Loans for its own account, which in general will conform to the
mortgage servicing practices of prudent mortgage lending institutions which
service for their own account, Mortgage Loans of the same type as the HELOC
Mortgage Loans in the jurisdictions in which the related Mortgaged Properties
are located.

         ACCRUAL PERIOD: With respect to any Payment Date and the Notes, other
than Class III-A, Class IV-A, Class V-A-1, Class V-A-3 and Class V-A-4 Notes and
the Class II-A-3 Components, the period from the preceding Payment Date (or in
the case of the first Payment Date, from the Closing Date) through the day
preceding such Payment Date. With respect to any Payment Date and the Class
III-A, Class IV-A, Class V-A-1, Class V-A-3, and Class V-A-4 Notes and the Class
II-A-3 Components, the prior calendar month. Accrued Note Interest for the Class
I-A, Class V-A-2, Class VI-A, Class M, Class V-M and Class V-B Notes shall be
calculated on the basis of the actual number of days in the Accrual Period and a
360-day year. Accrued Note Interest on the Class II-A-1, Class II-A-2, Class
III-A, Class IV-A, Class V-A-1, Class V-A-3, and Class V-A-4 Notes and the Class
II-A-3 Components shall be calculated on the basis of a 360-day year consisting
of twelve 30-day months.

         ACCRUED COMPONENT INTEREST: For any Payment Date the Class II-A-3
Components, interest accrued during the related Accrual Period at the
then-applicable Component Interest Rate on the related Component Principal
Balance thereof immediately prior to such Payment Date, plus any Accrued
Component Interest remaining unpaid from any prior Payment Date with interest
thereon at the related Component Interest Rate.

         ACCRUED NOTE INTEREST: With respect to any Payment Date and each Class
of Notes, other than the Class II-A-3 Notes, interest accrued during the related
Accrual Period at the then-applicable Note Interest Rate on the related Note
Principal Balance thereof immediately prior to such Payment Date, plus any
Accrued Note Interest remaining unpaid from any prior Payment Date with interest
thereon at the related Note Interest Rate. For any Payment Date and the Class
II-A-3 Notes, the sum of the Accrued Component Interest of the Class II-A-3
Components.

         ADDITIONAL BALANCE: As to any HELOC Mortgage Loan and day, the
aggregate amount of all Draws conveyed to the Trust pursuant to the Mortgage
Loan Purchase Agreement.

         ADDITIONAL NEGATIVE AMORTIZATION PRINCIPAL AMOUNT: For any Payment
Date, the excess, if any, of (x) the Negative Amortization Amount over (y) the
Principal Remittance Amount for the Group I Loans (without regard to the last
sentence of the definition thereof).

         ADDITION NOTICE: With respect to the transfer of Group I, Group II-C,
Group II-NC, Group III, Group IV, Group V and Group VI Subsequent HELOC Mortgage
Loans or HELOC Mortgage Loans, as applicable, to the Trust Estate pursuant to
Sections 2.05 through 2.11, respectively, a notice of the Issuer's designation
of the related Group I, Group II-C, Group II-NC, Group III, Group IV, Group V
and Group VI Subsequent HELOC Mortgage Loans or HELOC Mortgage Loans, as
applicable, to be sold to the Trust Estate and the related aggregate Stated
Principal Balance of such Group I, Group II-C, Group II-NC, Group III, Group IV,
Group V and Group VI Subsequent HELOC Mortgage Loans or HELOC Mortgage Loans, as
applicable, as of the related Subsequent Cut-off Date. The Addition Notice shall
be given not later than three Business Days prior to the related Subsequent
Transfer Date and shall be substantially in the form of Exhibit H to the
Indenture.

         ADJUSTMENT FRACTION: For any Payment Date with respect to the Class
I-A, Class II-A, Class III-A, Class IV-A Class M and Class B Notes, a fraction,
(x) the numerator of which is the aggregate Stated Principal Balance of the
Group I, Group II-C, Group II-NC, Group III and Group IV Loans at the beginning
of the related Due Period, and (y) the denominator of which is the aggregate
Note Principal Balance of the Class I-A, Class II-A, Class III-A, Class IV-A,
Class M and Class B Notes immediately prior to that Payment Date. For any
Payment Date with respect to the Class V-A, Class V-M and Class V-B Notes, a
fraction, (x) the numerator of which is the aggregate Stated Principal Balance
of the Group V Loans at the beginning of the related Due Period, and (y) the
denominator of which is the aggregate Note Principal Balance of the Class V-A,
Class V-M and Class V-B Notes immediately prior to that Payment Date.

         ADJUSTMENT DATE: As to each Mortgage Loan, each date set forth in the
related Mortgage Note on which an adjustment to the interest rate on such
Mortgage Loan becomes effective.

         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.

         ALLOCATED REALIZED LOSS AMOUNT: With respect to any Class I-A-2, Class
I-A-3, Class IV-A-3, Class V-A-4-B, Class M, Class B, Class V-M and Class V-B
Notes and any Payment Date, an amount equal to the sum of any Realized Loss
allocated to that Class of Notes on that Payment Date and any Allocated Realized
Loss Amount for that Class remaining unpaid from the previous Payment Dates, in
each case, with interest thereon at the applicable Note Interest Rate for such
Payment Date for such Class for the related Accrual Period.

         APPRAISED VALUE: The appraised value of a Mortgaged Property based upon
the appraisal made by or for the Seller, in compliance with the Seller's
underwriting criteria, of such Mortgaged Property at such time of origination.
With respect to a Mortgage Loan, the proceeds of which were used to refinance an
existing Mortgage Loan, the appraised value of the Mortgaged Property based upon
the appraisal obtained at the time of refinancing.

         ARM LOANS: At any time, collectively, all the Mortgage Loans, excluding
HELOC Mortgage Loans, which have adjustable Mortgage Rates.

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

         AUTHORIZED NEWSPAPER: A newspaper of general circulation in the Borough
of Manhattan, The City of New York, printed in the English language and
customarily published on each Business Day, whether or not published on
Saturdays, Sundays or holidays.

         AUTHORIZED OFFICER: With respect to the Issuer, any officer of the
Owner Trustee who is authorized to act for the Owner Trustee in matters relating
to the Issuer and who is identified on the list of Authorized Officers delivered
by the Owner Trustee to the Indenture Trustee on the Closing Date (as such list
may be modified or supplemented from time to time thereafter).

         AVAILABLE FUNDS: The Group I, Group II-C, Group II-NC, Group III, Group
IV or Group V Available Funds, as applicable.

         AVAILABLE FUNDS RATE: On any Payment Date and any Class I-A, Class
II-A-1, Class II-A-2, Class III-A and Class IV-A Notes and the Class II-A-3
Components, the per annum rate equal to (a) the weighted average (as described
below) of (1) the weighted average of the Net Mortgage Rates on the related
Mortgage Loans included in the trust as of the end of the prior Due Period,
weighted on the basis of the Stated Principal Balances thereof as of the end of
the prior Due Period, and (2) the amount of interest earned on amounts on
deposit in the related Pre-Funding Account from the prior Payment Date to the
current Payment Date, expressed as a percentage of the related Pre-Funded Amount
at the end of the prior Due Period and converted to a per annum rate, weighted
on the basis of the related Pre-Funded Amount as of the end of the related Due
Period, times (b) in the case of the Class I-A Notes only, a fraction equal to
(x) 30 divided by (y) the number of days in the related Accrual Period and times
(c) the related Adjustment Fraction. In addition, the Available Funds Rate with
respect to the Class I-A Notes will be reduced by the Additional Negative
Amortization Principal Amount, expressed as a percentage of the aggregate Note
Principal Balance of the Class I-A Notes. The weighted average of clauses (1)
and (2) above shall be weighted on the basis of the aggregate Stated Principal
Balance of the related Mortgage Loans as of the beginning of the related Due
Period and the aggregate amount on deposit in the related Pre-Funding Account,
respectively.

         On any Payment Date and any Class of Class M Notes, the per annum rate
equal to (a) the weighted average (as described below) of (1) the weighted
average of the Net Mortgage Rates of the Mortgage Loans in Loan Group I, Loan
Group II-C, Loan Group II-NC, Loan Group III and Loan Group IV included in the
trust as of the end of the prior Due Period, weighted on the basis of the Stated
Principal Balances thereof as of the end of the prior Due Period, weighted in
proportion to the results of subtracting from the aggregate Stated Principal
Balance of the Mortgage Loans of Loan Group I, Loan Group II-C, Loan Group
II-NC, Loan Group III and Loan Group IV, the aggregate Note Principal Balance or
Component Principal Balance, as applicable, of the related Class I-A, Class
II-A, Class III-A and Class IV-A Notes and Class II-A-3 Components,
respectively, and (2) the amount of interest earned on amounts on deposit in the
related Pre-Funding Account from the prior Payment Date to the current Payment
Date, expressed as a percentage of the related Pre-Funded Amount at the end of
the prior Due Period and converted to a per annum rate, weighted on the basis of
the related Pre-Funded Amount as of the end of the related Due Period, times (b)
a fraction equal to (x) 30 divided by (y) the number of days in the related
Accrual Period and times (c) the related Adjustment Fraction. The weighted
average of clauses (1) and (2) above shall be weighted on the basis of the
aggregate Stated Principal Balance of the related Mortgage Loans as of the
beginning of the related Due Period and the aggregate amount on deposit in the
related Pre-Funding Account, respectively.

         On any Payment Date and any Class of Class V-A, Class V-M and Class V-B
Notes, the per annum rate equal to the (a) the weighted average (as described
below) of (1) the weighted average of the Net Mortgage Rates of the Mortgage
Loans in Loan Group V included in the trust as of the end of the prior Due
Period, and (2) the amount of interest earned on amounts on deposit in the
related Pre-Funding Account from the prior Payment Date to the current Payment
Date, expressed as a percentage of the related Pre-Funded Amount at the end of
the prior Due Period and converted to a per annum rate, weighted on the basis of
the related Pre-Funded Amount as of the end of the related Due Period, times (b)
in the case of the Class V-A-2, Class V-M and Class V-B Notes only, a fraction
equal to (x) 30 divided by (y) the number of days in the related Accrual Period
and times (c) the related Adjustment Fraction. In addition, the Available Funds
Rate with respect to the V-A-4-D Notes will be reduced by the Note Insurance
Policy Premium Rate. The weighted average of clauses (1) and (2) above shall be
weighted on the basis of the aggregate Stated Principal Balance of the related
Mortgage Loans as of the beginning of the related Due Period and the aggregate
amount on deposit in the related Pre-Funding Account, respectively.

         BANKRUPTCY CODE: The Bankruptcy Code of 1978, as amended.

         BASIC DOCUMENTS: The Trust Agreement, the Certificate of Trust, the
Indenture, the Notes, the Trust Certificates, the HELOC Back-Up Servicing
Agreement, the HELOC Servicing Agreement, the RMBS Master Servicing Agreement,
the RMBS Servicing Agreement, the Mortgage Loan Purchase Agreement, the Cap
Contract, the Corridor Contract, the Insurance Agreement, the Insurance Policy,
the Note Insurance Policy and the other documents and certificates delivered in
connection with any of the above.

         BASIC PRINCIPAL DISTRIBUTION AMOUNT: With respect to any Payment Date
and Loan Group I, Loan Group II-C, Loan Group II-NC, Loan Group III and Loan
Group IV, the lesser of (a) the excess of (i) the sum of the related Available
Funds for such Payment Date over (ii) the aggregate amount of Accrued Note
Interest or Accrued Component Interest for the Class I-A, Class II-A-1, Class
II-A-2, Class III-A, Class IV-A and Class M Notes and Class II-A-3 Components
for such Payment Date and (b) the related Principal Remittance Amount for the
Group I, Group II-C, Group II-NC, Group III and Group IV Loans for such Payment
Date. With respect to any Payment Date and Loan Group V, the lesser of (a) the
excess of (i) the related Available Funds and the Class V-A-4-D Insured Amount,
if any, for such Payment Date over (ii) the aggregate amount of Accrued Note
Interest for the Class V-A, Class V-M and Class V-B Notes for such Payment Date
and (b) the related Principal Remittance Amount for the Group V Loans for such
Payment Date.

         BASIS RISK AMOUNT: With respect to each Derivative Contract and each
Payment Date, an amount equal to the sum of (x) the Basis Risk Shortfall
Carry-Forward Amount for the related Class of Notes or Class II-A-3 Components
for such Payment Date and (y) the product of (i) the Other Basis Risk Amount for
such Payment Date and (ii) a fraction, the numerator of which is the Excess
Basis Risk Capacity with respect to such Derivative Contract for such Payment
Date and the denominator of which is the aggregate Excess Basis Risk Capacity
with respect to all Derivative Contracts for such Payment Date.

         BASIS RISK SHORTFALL: With respect to any class of LIBOR Notes, other
than the Class II-A -3 Notes and Class VI-A Notes, on each Payment Date where
clause (iii) of the definition of "Note Interest Rate" is less than clauses (i)
or (ii) of the definition of "Note Interest Rate," the excess, if any, of (x)
the aggregate Accrued Note Interest thereon for such Payment Date calculated
pursuant to the lesser of clause (i) or (ii) of the definition of Note Interest
Rate over (y) Accrued Note Interest thereon for such Payment Date calculated at
the related Available Funds Rate. With respect to the Class II-A-3 Components,
on each Payment Date where clause (iii) of the definition of "Component Interest
Rate" is less than clauses (i) or (ii) of the definition of "Component Interest
Rate," the excess, if any, of (x) the aggregate Accrued Component Interest
thereon for such Payment Date calculated pursuant to the lesser of clause (i) or
(ii) of the definition of Component Interest Rate over (y) Accrued Component
Interest thereon for such Payment Date calculated at the related Available Funds
Rate. With respect to the Class VI-A Notes, on each Payment Date where the Note
Interest Rate for the Class VI-A Notes is limited to the Net WAC Cap, any
interest which would have accrued at the excess of (a) the lesser of (i)
One-Month LIBOR plus the related Note Margin and (ii) the Maximum Rate over (b)
the Net WAC Cap.

         BASIS RISK SHORTFALL CARRY-FORWARD AMOUNT: With respect to each class
of LIBOR Notes and the Class II-A-3 Components, other than the Class II-A-3
Notes, and any Payment Date, as determined separately for each such Class of
Notes or Class II-A-3 Components, an amount equal to the aggregate amount of
Basis Risk Shortfall for such Notes or Class II-A-3 Components on such Payment
Date, plus any unpaid Basis Risk Shortfall for such Class of Notes or Class
II-A-3 Components from prior Payment Dates, plus interest thereon at the Note
Interest Rate or Component Interest Rate, as applicable, or, in the case of the
Class VI-A Notes, plus interest accrued thereon at the lesser of (i) One-Month
LIBOR plus the related Note Margin and (ii) the Maximum Rate, for such Payment
Date for such Class for the related Accrual Period, to the extent previously
unreimbursed by the Net Monthly Excess Cashflow or payments received by the
Indenture Trustee under the Cap Contract or Corridor Contract, as applicable.

         BENEFICIAL OWNER: With respect to any Book-Entry Note, the Person who
is the beneficial owner of such Note as reflected on the books of the Depository
or on the books of a Person maintaining an account with such Depository
(directly as a Depository Participant or indirectly through a Depository
Participant, in accordance with the rules of such Depository).

         BOOK-ENTRY NOTES: Beneficial interests in the Offered Notes, ownership
and transfers of which shall be made through book entries by the Depository as
described in Section 4.06 of the Indenture.

         BUSINESS DAY: Any day other than (i) a Saturday or a Sunday or (ii) a
day on which banking institutions in the States of Maryland, Minnesota, New
York, Delaware or Maryland or in the city in which a Corporate Trust Office is
located, is required or authorized by law to be closed.

         CALENDAR QUARTER: A calendar quarter shall consist of one of the
following time periods in any given year: January 1 through March 31, April 1
through June 30, July 1 though September 30, and October 1 through December 31.

         CAP CONTRACT: The interest rate Cap Contract between the Owner Trustee
(or assigned to the Owner Trustee) on behalf of the Trust and the Derivative
Counterparty primarily for the benefit of the Class V-A-2 Notes.

         CAP RATE: With respect to the Cap Contract and each Payment Date, the
fixed rate set forth in the Cap Contract used to determine payments to the
Indenture Trustee.

         CASH LIQUIDATION: As to any defaulted Mortgage Loan other than a
Mortgage Loan as to which an REO Acquisition occurred, a determination by the
RMBS Servicer evidenced in a certificate of a Servicing Officer that it has
received all Insurance Proceeds, Liquidation Proceeds and other payments or cash
recoveries which the RMBS Servicer reasonably and in good faith expects to be
finally recoverable with respect to such Mortgage Loan.

         CEILING RATE: With respect to the Corridor Contract and each Payment
Date, the fixed rate set forth in the Corridor Contract used to determine
payments to the Indenture Trustee.

         CERTIFICATE DISTRIBUTION ACCOUNT: The account or accounts created and
maintained pursuant to Section 3.10(c) of the Trust Agreement. The Certificate
Distribution Account shall be an Eligible Account.

         CERTIFICATE PAYING AGENT: Initially, Deutsche Bank National Trust
Company, in its capacity as Certificate Paying Agent, or any successor to
Deutsche Bank National Trust Company in such capacity.

         CERTIFICATE PERCENTAGE INTEREST: With respect to each Certificate, the
Certificate Percentage Interest stated on the face thereof.

         CERTIFICATE REGISTER: The register maintained by the Certificate
Registrar in which the Certificate Registrar shall provide for the registration
of Certificates and of transfers and exchanges of Certificates.

         CERTIFICATE REGISTRAR: Initially, Deutsche Bank National Trust Company,
in its capacity as Certificate Registrar, or any successor to Deutsche Bank
National Trust Company in such capacity.

         CERTIFICATE OF TRUST: The Certificate of Trust filed for the Trust
pursuant to Section 3810(a) of the Statutory Trust Statute.

         CERTIFICATES OR TRUST CERTIFICATES: The American Home Mortgage
Investment Trust 2005-2 Trust Certificates, Series 2005-2, evidencing the
beneficial ownership interest in the Issuer and executed by the Owner Trustee in
substantially the form set forth in Exhibit A to the Trust Agreement.

         CERTIFICATEHOLDER OR HOLDER: The Person in whose name a Certificate is
registered in the Certificate Register. Owners of Certificates that have been
pledged in good faith may be regarded as Holders if the pledgee establishes to
the satisfaction of the Certificate Registrar or the Owner Trustee, as the case
may be, the pledgee's right so to act with respect to such Certificates and that
the pledgee is not the Issuer, any other obligor upon the Certificates or any
Affiliate of any of the foregoing Persons.

         CHARGE-OFF AMOUNT: For any Charged-Off HELOC Mortgage Loan, the amount
of the Stated Principal Balance that has been written down.

         CHARGED-OFF HELOC MORTGAGE LOAN: A HELOC Mortgage Loan with a Stated
Principal Balance that has been written down on the HELOC Servicer's servicing
system in accordance with its policies and procedures and any HELOC Mortgage
Loan that is more than 180 days past due.

         CLASS: Any of the Class A, Class M, Class B, Class V-M, Class V-B or
Class N Notes.

         CLASS A NOTES: The Class I-A, Class II-A, Class III-A, Class IV-A,
Class V-A and Class VI-A Notes in the form attached as Exhibit A-1 to the
Indenture.

         CLASS A PRINCIPAL ALLOCATION FRACTION: For any Payment Date and (i) the
Class I-A Notes, (ii) the Class II-A-1 Notes and Component II-A-3-C, (iii) the
Class II-A-2 Notes and Component II-A-3-NC, (iv) the Class III-A Notes and (v)
the Class IV-A Notes, as determined separately, a fraction, (x) the numerator of
which is the Principal Remittance Amount with respect to the Mortgage Loans in
the related Loan Group to be distributed on that Payment Date, and (y) the
denominator of which is the Principal Remittance Amount for all of the Mortgage
Loans in Loan Group I, Loan Group II-C, Loan Group II-NC, Loan Group III and
Loan Group IV to be distributed on that Payment Date.

         CLASS A PRINCIPAL DISTRIBUTION AMOUNT: For any applicable Payment Date
on or after the related Stepdown Date as long as a related Trigger Event has not
occurred with respect to such Payment Date, an amount equal to the lesser of (A)
the related aggregate Principal Distribution Amount for such Payment Date and
(B) the excess (if any) of (x) the aggregate Note Principal Balance of the Class
I-A, Class II-A, Class III-A and Class IV-A Notes immediately prior to such
Payment Date over (y) the lesser of (a) the aggregate Stated Principal Balance
of the Group I, Group II-C, Group II-NC, Group III and Group IV 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 after reduction for Realized Losses incurred during the related
Prepayment Period) multiplied by approximately 84.90% and (b) the amount, if
any, by which (i) the aggregate Stated Principal Balance of the Group I, Group
II-C, Group II-NC, Group III and Group IV 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 after reduction for Realized Losses incurred during the related
Prepayment Period) exceeds (ii) 0.35% of the sum of the Group I, Group II-C,
Group II-NC, Group III and Group IV Cut-off Date Balances and any Additional
Negative Amortization Principal Amount.

         CLASS B NOTES: The Class B Notes in the form attached as Exhibit A-3 to
the Indenture.

         CLASS B PRINCIPAL DISTRIBUTION AMOUNT: For any applicable Payment Date
on or after the Stepdown Date as long as a Trigger Event has not occurred with
respect to such Payment Date, an amount equal to the excess (if any) of (x) the
sum of (i) the aggregate Note Principal Balance of the Class I-A, Class II-A,
Class III-A, Class IV-A and Class M Notes (after taking into account the
distribution of the Class A, Class M-1, Class M-2, Class M-3, Class M-4 and
Class M-5 Principal Distribution Amounts on such Payment Date) and (ii) the Note
Principal Balance of the Class B Notes immediately prior to such Payment Date
over (y) the lesser of (a) the aggregate Stated Principal Balance of the Group
I, Group II-C, Group II-NC, Group III and Group IV 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 after reduction for Realized Losses incurred during the related
Prepayment Period) multiplied by approximately 99.93% and (b) the amount, if
any, by which (i) the aggregate Stated Principal Balance of the Group I, Group
II-C, Group II-NC, Group III and Group IV 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 after reduction for Realized Losses incurred during the related
Prepayment Period) exceeds (ii) 0.35% of the sum of the Group I, Group II-C,
Group II-NC, Group III and Group IV Cut-off Date Balances and any Additional
Negative Amortization Principal Amount.

         CLASS M NOTES: The Class M-1, Class M-2, Class M-3, Class M-4 and Class
M-5 Notes in the form attached as Exhibit A-2 to the Indenture.

         CLASS M-1 PRINCIPAL DISTRIBUTION AMOUNT: For any applicable Payment
Date on or after the related Stepdown Date as long as a related Trigger Event
has not occurred with respect to such Payment Date, an amount equal to the
excess (if any) of (x) the sum of (i) the aggregate Note Principal Balance of
the Class I-A, Class II-A, Class III-A and Class IV-A Notes (after taking into
account the distribution of the Class A Principal Distribution Amount on such
Payment Date) and (ii) the Note Principal Balance of the Class M-1 Notes
immediately prior to such Payment Date over (y) the lesser of (a) the aggregate
Stated Principal Balance of the Group I, Group II-C, Group II-NC, Group III and
Group IV 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 after reduction for Realized Losses
incurred during the related Prepayment Period) multiplied by approximately
87.80% and (b) the amount, if any, by which (i) the aggregate Stated Principal
Balance of the Group I, Group II-C, Group II-NC, Group III and Group IV 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 after reduction for Realized Losses incurred
during the related Prepayment Period) exceeds (ii) 0.35% of the sum of the Group
I, Group II-C, Group II-NC, Group III and Group IV Cut-off Date Balances and any
Additional Negative Amortization Principal Amount.

         CLASS M-2 PRINCIPAL DISTRIBUTION AMOUNT: For any applicable Payment
Date on or after the related Stepdown Date as long as a related Trigger Event
has not occurred with respect to such Payment Date, an amount equal to the
excess (if any) of (x) the sum of (i) the aggregate Note Principal Balance of
the Class I-A, Class II-A, Class III-A, Class IV-A and Class M-1 Notes (after
taking into account the distribution of the Class A and Class M-1 Principal
Distribution Amounts on such Payment Date) and (ii) the Note Principal Balance
of the Class M-2 Notes immediately prior to such Payment Date over (y) the
lesser of (a) the aggregate Stated Principal Balance of the Group I, Group II-C,
Group II-NC, Group III and Group IV 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
after reduction for Realized Losses incurred during the related Prepayment
Period) multiplied by approximately 89.80% and (b) the amount, if any, by which
(i) the aggregate Stated Principal Balance of the Group I, Group II-C, Group
II-NC, Group III and Group IV 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 after reduction for
Realized Losses incurred during the related Prepayment Period) exceeds (ii)
0.35% of the sum of the Group I, Group II-C, Group II-NC, Group III and Group IV
Cut-off Date Balances and any Additional Negative Amortization Principal Amount.

         CLASS M-3 PRINCIPAL DISTRIBUTION AMOUNT: For any applicable Payment
Date on or after the Stepdown Date as long as a Trigger Event has not occurred
with respect to such Payment Date, an amount equal to the excess (if any) of (x)
the sum of (i) the aggregate Note Principal Balance of the Class I-A, Class
II-A, Class III-A, Class IV-A, Class M-1 and Class M-2 Notes (after taking into
account the distribution of the Class A, Class M-1 and Class M-2 Principal
Distribution Amounts on such Payment Date) and (ii) the Note Principal Balance
of the Class M-3 Notes immediately prior to such Payment Date over (y) the
lesser of (a) the aggregate Stated Principal Balance of the Group I, Group II-C,
Group II-NC, Group III and Group IV 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
after reduction for Realized Losses incurred during the related Prepayment
Period) multiplied by approximately 91.00% and (b) the amount, if any, by which
(i) the aggregate Stated Principal Balance of the Group I, Group II-C, Group
II-NC, Group III and Group IV 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 after reduction for
Realized Losses incurred during the related Prepayment Period) exceeds (ii)
0.35% of the sum of the Group I, Group II-C, Group II-NC, Group III and Group IV
Cut-off Date Balances and any Additional Negative Amortization Principal Amount.

         CLASS M-4 PRINCIPAL DISTRIBUTION AMOUNT: For any applicable Payment
Date on or after the Stepdown Date as long as a Trigger Event has not occurred
with respect to such Payment Date, an amount equal to the excess (if any) of (x)
the sum of (i) the aggregate Note Principal Balance of the Class I-A, Class
II-A, Class III-A, Class IV-A, Class M-1, Class M-2 and Class M-3 Notes (after
taking into account the distribution of the Class A, Class M-1, Class M-2 and
Class M-3 Principal Distribution Amounts on such Payment Date) and (ii) the Note
Principal Balance of the Class M-4 Notes immediately prior to such Payment Date
over (y) the lesser of (a) the aggregate Stated Principal Balance of the Group
I, Group II-C, Group II-NC, Group III and Group IV 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 after reduction for Realized Losses incurred during the related
Prepayment Period) multiplied by approximately 92.84% and (b) the amount, if
any, by which (i) the aggregate Stated Principal Balance of the Group I, Group
II-C, Group II-NC, Group III and Group IV 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 after reduction for Realized Losses incurred during the related
Prepayment Period) exceeds (ii) 0.35% of the sum of the Group I, Group II-C,
Group II-NC, Group III and Group IV Cut-off Date Balances and any Additional
Negative Amortization Principal Amount.

         CLASS M-5 PRINCIPAL DISTRIBUTION AMOUNT: For any applicable Payment
Date on or after the Stepdown Date as long as a Trigger Event has not occurred
with respect to such Payment Date, an amount equal to the excess (if any) of (x)
the sum of (i) the aggregate Note Principal Balance of the Class I-A, Class
II-A, Class III-A, Class IV-A, Class M-1, Class M-2, Class M-3 and Class M-4
Notes (after taking into account the distribution of the Class A, Class M-1,
Class M-2, Class M-3 and Class M-4 Principal Distribution Amounts on such
Payment Date) and (ii) the Note Principal Balance of the Class M-5 Notes
immediately prior to such Payment Date over (y) the lesser of (a) the aggregate
Stated Principal Balance of the Group I, Group II-C, Group II-NC, Group III and
Group IV 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 after reduction for Realized Losses
incurred during the related Prepayment Period) multiplied by approximately
96.32% and (b) the amount, if any, by which (i) the aggregate Stated Principal
Balance of the Group I, Group II-C, Group II-NC, Group III and Group IV 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 after reduction for Realized Losses incurred
during the related Prepayment Period) exceeds (ii) 0.35% of the sum of the Group
I, Group II-C, Group II-NC, Group III and Group IV Cut-off Date Balances and any
Additional Negative Amortization Principal Amount.

         CLASS I-A NOTES:  The Class I-A-1, Class I-A-2 and Class I-A-3 Notes.

         CLASS II-A NOTES: The Class II-A-1, Class II-A-2 and Class II-A-3
Notes.

         CLASS II-A-3 COMPONENTS:  Component II-A-3-C and Component II-A-3-NC.

         CLASS IV-A NOTES: The Class IV-A-1, Class IV-A-2 and Class IV-A-3
Notes.

         CLASS V-A NOTES: The Class V-A-1, Class V-A-2, Class V-A-3 and Class
V-A-4 Notes.

         CLASS V-A-4 NOTES: The Class V-A-4-A, Class V-A-4-B, Class V-A-4-C and
Class V-A-4-D Notes.

         CLASS V-A-1 PRIORITY AMOUNT: For any Payment Date, the lesser of (i)
the Note Principal Balance of the Class V-A-1 Notes immediately prior to such
Payment Date and (ii) the product of (x)(A) with respect to any Payment Date
prior to the related Stepdown Date or for which a related Trigger Event is in
effect, the related Principal Distribution Amount, or (B) with respect to any
Payment Date on or after the related Stepdown Date and for which Group V Trigger
Event is not in effect, the Class V-A Principal Distribution Amount, (y) the
Class V-A-1 Percentage and (z) the Class V-A-1 Shift Percentage.

         CLASS V-A-1 PERCENTAGE: For any Payment Date, the lesser of (i) 100%
and (ii) the percentage obtained by dividing (x) the Note Principal Balance of
the Class V-A-1 Notes immediately prior to such Payment Date by (y) the
aggregate Note Principal Balance of the Class V-A Notes immediately prior to
such Payment Date.

         CLASS V-A-1 SHIFT PERCENTAGE: For any Payment Date occurring prior to
the 37th Payment Date, 0%; for the 37th through 60th Payment Dates, 45%; for the
61st through 72nd Payment Dates, 80%; for the 73rd through 84th Payment Dates,
100%; and thereafter, 300%.

         CLASS V-A-4-D DEFICIENCY AMOUNT: With respect to each Payment Date
prior to the Final Scheduled Payment Date and the Class V-A-4-D Notes, an amount
equal to the sum of (i) the excess, if any, of (a) the amount of Accrued Note
Interest on the Class V-A-4-D Notes for that Payment Date over (b) the Group V
Available Funds for that Payment Date multiplied by a fraction equal to (x) the
Accrued Note Interest on the Class V-A-4-D Notes for that Payment Date over (y)
the Accrued Note Interest on all of the Class V-A Notes for that Payment Date ,
and (ii) the Class V-A-4-D Insured Undercollateralization Amount. With respect
to the Final Scheduled Payment Date and the Class V-A-4-D Notes, an amount equal
to the sum of (i) the excess, if any, of (a) the amount of Accrued Note Interest
on the Class V-A-4-D Notes for that Payment Date over (b) the Group V Available
Funds for that Payment Date multiplied by a fraction equal to (x) the Accrued
Note Interest on the Class V-A-4-D Notes for that Payment Date over (y) the
Accrued Note Interest on all of the Class V-A Notes for that Payment Date and
(ii) the excess, if any, of the Note Principal Balance of all outstanding Class
V-A-4-D Notes due on such Final Scheduled Payment Date to the extent not paid
from Group V Available Funds on that Payment Date. For the Class V-A-4-D Notes
and any date on which the acceleration of the Notes has been directed or
consented to by the Noteholders pursuant to the Indenture, the amount required
to pay the Note Principal Balance of the Class V-A-4-D Notes in full, together
with accrued and unpaid interest thereon through the date of payment of the
Class V-A-4-D Notes.

         CLASS V-A-4-D INSURED AMOUNT: The aggregate of Class V-A-4-D Deficiency
Amounts and Class V-A-4-D Preference Amounts.

         CLASS V-A-4-D INSURED UNDERCOLLATERALIZATION AMOUNT: On any Payment
Date, an amount equal to (x)(i) the aggregate Note Principal Balance of the
Class V-A Notes over (ii) the aggregate Stated Principal Balance of the Group V
Loans plus the Group V Pre-Funded Amount multiplied by (x) a fraction equal to
(i) the aggregate Note Principal Balance of the Class V-A-4-D Notes over (ii)
the aggregate Note Principal Balance of the Class V-A Notes.

         CLASS V-A-4-D PREFERENCE AMOUNT: With respect to the Class V-A-4-D
Notes, any amount previously distributed to a holder of a Class V-A-4-D Note
that is recoverable and sought to be recovered as a voidable preference by a
trustee in bankruptcy pursuant to the United States Bankruptcy Code, as amended
from time to time, in accordance with a final nonappealable order of a court
having competent jurisdiction.

         CLASS V-A PRINCIPAL DISTRIBUTION AMOUNT: For any applicable Payment
Date on or after the related Stepdown Date as long as a related Trigger Event
has not occurred with respect to such Payment Date, an amount equal to the
lesser of (A) the related aggregate Principal Distribution Amount for such
Payment Date and (B) the excess (if any) of (x) the aggregate Note Principal
Balance of the Class V-A Notes immediately prior to such Payment Date over (y)
the lesser of (a) the aggregate Stated Principal Balance of the Group V 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 after reduction for Realized Losses incurred
during the related Prepayment Period) multiplied by approximately 85.40% and (b)
the amount, if any, by which (i) the aggregate Stated Principal Balance of the
Group V 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 after reduction for Realized Losses
incurred during the related Prepayment Period) exceeds (ii) 0.35% of the Group V
Cut-off Date Balance.

         CLASS V-B NOTES: The Class V-B Notes, in the form attached as Exhibit
A-3 to the Indenture.

         CLASS V-B PRINCIPAL DISTRIBUTION AMOUNT: For any applicable Payment
Date on or after the related Stepdown Date as long as a related Trigger Event
has not occurred with respect to such Payment Date, an amount equal to the
excess (if any) of (x) the sum of (i) the aggregate Note Principal Balance of
the Class V-A Notes and Class V-M Notes (after taking into account the
distribution of the Class V-A, Class V-M-1, Class V-M-2, Class V-M-3, Class
V-M-4 and Class V-M-5 Principal Distribution Amounts on such Payment Date) and
(ii) the Note Principal Balance of the Class V-B Notes immediately prior to such
Payment Date over (y) the lesser of (a) the aggregate Stated Principal Balance
of the Group V 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 after reduction for Realized
Losses incurred during the related Prepayment Period) multiplied by
approximately 99.30% and (b) the amount, if any, by which (i) the aggregate
Stated Principal Balance of the Group V 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
after reduction for Realized Losses incurred during the related Prepayment
Period) exceeds (ii) 0.35% of the Group V Cut-off Date Balance.

         CLASS V-M NOTES: The Class V-M-1, Class V-M-2, Class V-M-3, Class V-M-4
and Class V-M-5, in the form attached as Exhibit A-2 to the Indenture.

         CLASS V-M-1 PRINCIPAL DISTRIBUTION AMOUNT: For any applicable Payment
Date on or after the related Stepdown Date as long as a related Trigger Event
has not occurred with respect to such Payment Date, an amount equal to the
excess (if any) of (x) the sum of (i) the aggregate Note Principal Balance of
the Class V-A Notes (after taking into account the distribution of the Class V-A
Principal Distribution Amount on such Payment Date) and (ii) the Note Principal
Balance of the Class V-M-1 Notes immediately prior to such Payment Date over (y)
the lesser of (a) the aggregate Stated Principal Balance of the Group V 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 after reduction for Realized Losses incurred
during the related Prepayment Period) multiplied by approximately 88.20% and (b)
the amount, if any, by which (i) the aggregate Stated Principal Balance of the
Group V 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 after reduction for Realized Losses
incurred during the related Prepayment Period) exceeds (ii) 0.35 of the Group V
Cut-off Date Balance.

         CLASS V-M-2 PRINCIPAL DISTRIBUTION AMOUNT: For any applicable Payment
Date on or after the related Stepdown Date as long as a related Trigger Event
has not occurred with respect to such Payment Date, an amount equal to the
excess (if any) of (x) the sum of (i) the aggregate Note Principal Balance of
the Class V-A Notes and Class V-M-1 Notes (after taking into account the
distribution of the Class V-A and Class V-M-1 Principal Distribution Amounts on
such Payment Date) and (ii) the Note Principal Balance of the Class V-M-2 Notes
immediately prior to such Payment Date over (y) the lesser of (a) the aggregate
Stated Principal Balance of the Group V 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
after reduction for Realized Losses incurred during the related Prepayment
Period) multiplied by approximately 90.20% and (b) the amount, if any, by which
(i) the aggregate Stated Principal Balance of the Group V 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 after reduction for Realized Losses incurred during the related
Prepayment Period) exceeds (ii) 0.35% of the Group V Cut-off Date Balance.

         CLASS V-M-3 PRINCIPAL DISTRIBUTION AMOUNT: For any applicable Payment
Date on or after the related Stepdown Date as long as a related Trigger Event
has not occurred with respect to such Payment Date, an amount equal to the
excess (if any) of (x) the sum of (i) the aggregate Note Principal Balance of
the Class V-A, Class V-M-1 and Class V-M-2 Notes (after taking into account the
distribution of the Class V-A, Class V-M-1 and Class V-M-2 Principal
Distribution Amounts on such Payment Date) and (ii) the Note Principal Balance
of the Class V-M-3 Notes immediately prior to such Payment Date over (y) the
lesser of (a) the aggregate Stated Principal Balance of the Group V 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 after reduction for Realized Losses incurred
during the related Prepayment Period) multiplied by approximately 91.50% and (b)
the amount, if any, by which (i) the aggregate Stated Principal Balance of the
Group V 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 after reduction for Realized Losses
incurred during the related Prepayment Period) exceeds (ii) 0.35% of the Group V
Cut-off Date Balance.

         CLASS V-M-4 PRINCIPAL DISTRIBUTION AMOUNT: For any applicable Payment
Date on or after the related Stepdown Date as long as a related Trigger Event
has not occurred with respect to such Payment Date, an amount equal to the
excess (if any) of (x) the sum of (i) the aggregate Note Principal Balance of
the Class V-A, Class V-M-1, Class V-M-2 and Class V-M-3 Notes (after taking into
account the distribution of the Class V-A, Class V-M-1, Class V-M-2 and Class
V-M-3 Principal Distribution Amounts on such Payment Date) and (ii) the Note
Principal Balance of the Class V-M-4 Notes immediately prior to such Payment
Date over (y) the lesser of (a) the aggregate Stated Principal Balance of the
Group V 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 after reduction for Realized Losses
incurred during the related Prepayment Period) multiplied by approximately
95.00% and (b) the amount, if any, by which (i) the aggregate Stated Principal
Balance of the Group V 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 after reduction for
Realized Losses incurred during the related Prepayment Period) exceeds (ii)
0.35% of the Group V Cut-off Date Balance.

         CLASS V-M-5 PRINCIPAL DISTRIBUTION AMOUNT: For any applicable Payment
Date on or after the related Stepdown Date as long as a related Trigger Event
has not occurred with respect to such Payment Date, an amount equal to the
excess (if any) of (x) the sum of (i) the aggregate Note Principal Balance of
the Class V-A, Class V-M-1, Class V-M-2, Class V-M-3 and Class V-M-4 Notes
(after taking into account the distribution of the Class V-A, the Class V-M-1,
Class V-M-2, Class V-M-3 and Class V-M-4 Principal Distribution Amounts on such
Payment Date) and (ii) the Note Principal Balance of the Class V-M-5 Notes
immediately prior to such Payment Date over (y) the lesser of (a) the aggregate
Stated Principal Balance of the Group V 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
after reduction for Realized Losses incurred during the related Prepayment
Period) multiplied by approximately 97.20% and (b) the amount, if any, by which
(i) the aggregate Stated Principal Balance of the Group V 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 after reduction for Realized Losses incurred during the related
Prepayment Period) exceeds (ii) 0.35% of the Group V Cut-off Date Balance.

         CLASS VI-A DEFICIENCY AMOUNT: With respect to any Payment Date and the
Class VI-A Notes, as applicable, an amount, if any, equal to the sum of:

         (1)       the amount by which the aggregate amount of accrued and
                   unpaid interest on the Class VI-A Notes (which excludes any
                   Relief Act Shortfalls, Basis Risk Shortfalls or Basis Risk
                   Shortfall Carry-Forward Amounts for that Payment Date) at the
                   Class VI-A Note Interest Rate relating to the Class VI-A
                   Notes on that Payment Date exceeds the amounts available for
                   interest distributions on the Class VI-A Notes on that
                   Payment Date; and

         (2)       (i) with respect to any Payment Date that is not the Final
                   Payment Date, the excess, if any, by which (a) the Note
                   Principal Balance relating to the Class VI-A Notes (after
                   giving effect to all payments of principal on the Class VI-A
                   Notes on such Payment Date, but without giving effect to
                   payments under the Policy to be made on such Payment Date)
                   exceeds (b) the Invested Amount as of the end of the related
                   Due Period; or

         (ii) on the Final Payment Date, the aggregate outstanding principal
balance of the Class VI-A Notes to the extent otherwise not paid on that date.

         CLASS VI-A PREFERENCE AMOUNT: Any amount previously distributed to a
Class VI-A Noteholder on the Class VI-A Notes that is recoverable and recovered
as a voidable preference by a trustee in bankruptcy pursuant to the United
States Bankruptcy Code (11 U.S.C.), as amended from time to time, in accordance
with a final nonappealable order of a court having competent jurisdiction.

         CLASS N RESERVE FUND: The segregated non-interest bearing trust account
established pursuant to Section 3.41 of the Indenture by the Indenture Trustee
on the Closing Date for the benefit of the Class N Notes.

         CLASS N NOTES: The Class N-1 Notes and Class N-2 Notes, in the form
attached as Exhibit A-3 to the Indenture.

         CLEARING AGENCY: An organization registered as a "clearing agency"
pursuant to Section 17A of the Securities and Exchange Act of 1934, as amended,
which initially shall be the Depository.

         CLOSING DATE: June 22, 2005.

         CODE: The Internal Revenue Code of 1986, as amended, and the rules and
regulations promulgated thereunder.

         COLLATERAL: The meaning specified in the Granting Clause of the
Indenture.

         COLLECTION ACCOUNT: The account or accounts created and maintained by
the HELOC Servicer pursuant to Section 3.06 of the HELOC Servicing Agreement.
Each Collection Account shall be an Eligible Account.

         COMBINED LOAN-TO-VALUE RATIO OR CLTV: With respect to any HELOC
Mortgage Loan, the sum of the Credit Limit of such HELOC Mortgage Loan at the
time such HELOC Mortgage Loan was originated or at the time such HELOC Mortgage
Loan is modified pursuant to Section 3.01 of the HELOC Servicing Agreement and
the outstanding principal balance of the Senior Lien(s), if any, as of the date
of origination of the HELOC Mortgage Loan, divided by the Appraised Value.

         COMMISSION: The Securities and Exchange Commission.

         COMPENSATING INTEREST: With respect to any Payment Date as determined
separately for each Loan Group, the amount of any Prepayment Interest Shortfalls
resulting from prepayments in full or in part during the preceding calendar
month on the related Mortgage Loans, excluding HELOC Mortgage Loans, but only to
the extent such Prepayment Interest Shortfalls do not exceed the RMBS Servicing
Fee for such Payment Date for such Loan Group or amounts paid or required to be
paid by the RMBS Master Servicer in respect of such shortfalls for such Payment
Date pursuant to Section 4.05 of the RMBS Master Servicing Agreement in respect
of such Loan Group. There shall be no obligation to pay Compensating Interest
with respect to any HELOC Mortgage Loan.

         COMPONENT II-A-3-C: The component of the Class II-A-3 Notes which
receives principal and interest primarily from the Group II-C Loans.

         COMPONENT II-A-3-NC: The component of the Class II-A-3 Notes which
receives principal and interest primarily from the Group II-NC Loans.

         COMPONENT INTEREST RATE: With respect to each Payment Date and
Component II-A-3-C and Component II-A-3-NC, a floating rate equal to the least
of (i) One-Month LIBOR plus the related Component Margin, (ii) the related
Maximum Component Interest Rate and (iii) the related Available Funds Rate with
respect to such Payment Date.

         COMPONENT MARGIN: With respect to Component II-A-3-C, on any Payment
Date prior to the Step-Up Date, 1.570% per annum, and on any Payment Date on and
after the Step-Up Date, 3.140% per annum. With respect to Component II-A-3-NC,
on any Payment Date prior to the Step-Up Date, 1.570% per annum, and on any
Payment Date on and after the Step-Up Date, 3.140% per annum.

         COMPONENT PRINCIPAL BALANCE: With respect to each of the Class II-A-3
Components, as of any Date of Determination, the initial Component Principal
Balance as stated on the face thereof, minus all amounts distributed in respect
of principal with respect to such Component.

         CORPORATE TRUST OFFICE: With respect to the Indenture Trustee, the
principal corporate trust office of the Indenture Trustee at which at any
particular time its corporate trust business 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: Trust Administration
AH0502. The Indenture Trustee shall notify all Noteholders of any change in the
location of the Corporate Trust Office. With respect to the Owner Trustee, the
principal corporate trust office of the Owner Trustee at which at any particular
time its corporate trust business shall be administered, which office at the
date of the execution of this Trust Agreement is located at Wilmington Trust
Company, Rodney Square North, 1100 North Market Street, Wilmington, Delaware
19801, Attention: American Home Mortgage Investment Trust 2005-2.

         CORRIDOR CONTRACT: The interest rate corridor contract between the
Owner Trustee (or assigned to the Owner Trustee) on behalf of the Trust and the
Derivative Counterparty primarily for the benefit of the Class II-A Notes.

         CPR: A constant rate of prepayment on the Mortgage Loans or HELOC
Mortgage Loans.

         CREDIT ENHANCEMENT PERCENTAGE: With respect to the Class I-A, Class
II-A, Class III-A and Class IV-A Notes and any Payment Date, the percentage
equivalent of a fraction, the numerator of which is (a) the sum of the aggregate
Note Principal Balance of the Class M Notes and Class B Notes and the related
Overcollateralized Amount and the denominator of which is (b) the aggregate
Stated Principal Balance of the related mortgage loans at the end of the related
Due Period. With respect to the Class V-A Notes and any Payment Date, the
percentage equivalent of a fraction, the numerator of which is (a) the sum of
the aggregate Note Principal Balance of the Class V-M Notes and Class V-B Notes
and the related Overcollateralized Amount and the denominator of which is (b)
the aggregate Stated Principal Balance of the related mortgage loans at the end
of the related Due Period.

         CREDIT LIMIT: With respect to any HELOC Mortgage Loan, the maximum
unpaid principal balance permitted under the terms of the related Mortgage Note.

         CREDIT LINE AGREEMENT: With respect to any HELOC Mortgage Loan, the
credit line account agreement executed by the related Mortgagor and any
amendment or modification thereof.

         CUMULATIVE LOSSES: As to any Payment Date and the Mortgage Loans, the
cumulative aggregate amount of Realized Losses on the Mortgage Loans from the
Cut-off Date through the end of the calendar month immediately preceding such
Payment Date.

         CUT-OFF DATE: With respect to the initial Mortgage Loans, June 1, 2005,
with respect to the initial HELOC Mortgage Loans, the close of business of June
7, 2005, and with respect to the subsequent Mortgage Loans or subsequent HELOC
Mortgage Loans, the applicable Subsequent Cut-off Date.

         CUT-OFF DATE BALANCE: The aggregate Stated Principal Balance of the
Mortgage Loans as of the Cut-off Date.

         CUT-OFF DATE PRINCIPAL BALANCE: With respect to any Mortgage Loan that
is not a HELOC Mortgage Loan, the unpaid principal balance thereof as of the
Cut-off Date after applying the principal portion of Monthly Payments due on or
before such date, whether or not received, and without regard to any payments
due after such date. With respect to any HELOC Mortgage Loan, the unpaid
principal balance thereof as of the Cut-off Date.

         DEBT SERVICE REDUCTION: With respect to any Mortgage Loan, a reduction
in the scheduled Monthly Payment for such Mortgage Loan by a court of competent
jurisdiction in a proceeding under the Bankruptcy Code, except such a reduction
constituting a Deficient Valuation or any reduction that results in a permanent
forgiveness of principal.

         DEFAULT: Any occurrence which with notice or the lapse of time or both
would become an Event of Default.

         DEFAULT PENALTY RATE BALANCE: The Stated Principal Balance of any HELOC
Mortgage Loan with respect to which the Default Penalty Rate Feature is in
effect.

         DEFAULT PENALTY RATE FEATURE: An feature that permits the HELOC
Servicer to increase the HELOC Loan Rate on a Delinquent HELOC Mortgage Loan.

         DEFICIENT VALUATION: With respect to any Mortgage Loan, a valuation by
a court of competent jurisdiction of the Mortgaged Property in an amount less
than the then outstanding indebtedness under the Mortgage Loan, or any reduction
in the amount of principal to be paid in connection with any scheduled Monthly
Payment that constitutes a permanent forgiveness of principal, which valuation
or reduction results from a proceeding under the Bankruptcy Code.

         DEFINITIVE NOTES: The meaning specified in Section 4.06 of the
Indenture.

         DELETED MORTGAGE LOAN: A Mortgage Loan replaced or to be replaced with
an Eligible Substitute Mortgage Loan.

         DELINQUENCY RATE: For any month, the fraction, expressed as a
percentage, the numerator of which is the aggregate outstanding principal
balance of all Mortgage Loans 60 or more days delinquent, or, in the case of any
HELOC Mortgage Loans, 90 or more days delinquent (including all foreclosures,
Mortgage Loans subject to bankruptcy proceedings and REO Properties) as of the
close of business on the last day of such month, as reported by the applicable
Servicer to the Securities Administrator, and the denominator of which is the
aggregate Stated Principal Balance of the Mortgage Loans or HELOC Mortgage
Loans, as applicable, as of the close of business on the last day of such month.

         DELINQUENT HELOC MORTGAGE LOAN: A HELOC Mortgage Loan is delinquent or
is a Delinquent HELOC Mortgage Loan, as reported by the applicable Servicer to
the Securities Administrator, if the Monthly Payment due thereon is not received
by the close of business on the day the related Monthly Payment is scheduled to
be made in accordance with the related Mortgage Note and until such delinquency
is subsequently cured.

         DEPOSITOR: American Home Mortgage Securities LLC, a Delaware limited
liability company, or its successor in interest.

         DEPOSITORY OR DEPOSITORY AGENCY: The Depository Trust Company or a
successor appointed by the Indenture Trustee. Any successor to the Depository
shall be an organization registered as a "clearing agency" pursuant to Section
17A of the Exchange Act and the regulations of the Securities and Exchange
Commission thereunder.

         DEPOSITORY AGREEMENT: With respect to the Class of Book-Entry Notes,
the agreement among the Issuer, the Indenture Trustee and the initial
Depository, dated as of the Closing Date.

         DEPOSITORY PARTICIPANT: A Person for whom, from time to time, the
Depository effects book-entry transfers and pledges of securities deposited with
the Depository.

         DERIVATIVE CONTRACTS: Any of the Cap Contract and the Corridor
Contract.

         DERIVATIVE CONTRACT FORMULA AMOUNT: With respect to the Cap Contract
and any Payment Date, an amount determined by the Derivative Counterparty and
provided to the Securities Administrator no later than 5 Business Days prior to
each Payment Date, equal to the product of (i) the excess, if any, of (x)
One-Month LIBOR (as determined pursuant to the Cap Contract) over (y) the Cap
Rate for such Payment Date, and (ii) an amount equal to the notional balance for
such Payment Date (which, in the case of payments to be made to the Class V-A-2
Notes, will be the lesser of (a) the notional balance on the schedule and (b)
the Note Principal Balance of the Class V-A-2 Notes) and (iii) the actual number
of days in the related Accrual Period, divided by 360. With respect to the
Corridor Contract and any Payment Date, an amount determined by the Derivative
Counterparty and provided to the Securities Administrator no later than 5
Business Days prior to each Payment Date, equal to the product of (i) the
excess, if any, of the lesser of (1) One-Month LIBOR (as determined pursuant to
the Corridor Contract) over the Strike Rate for such Payment Date and (2) the
Ceiling Rate for such Payment Date over the Strike Rate for such Payment Date,
(ii) an amount equal to the notional balance for such Payment Date (which will
be the lesser of (a) the notional balance on the schedule and (b) the aggregate
Note Principal Balance of the Class II-A Notes) and (iii) 1/12.

         DERIVATIVE COUNTERPARTY:  Bear Stearns Financial Products Inc.

         DETERMINATION DATE: With respect to any Payment Date, the 15th of the
related month, or if the 15th day of such month is not a Business Day, the
immediately preceding Business Day.

         DRAW: With respect to any HELOC Mortgage Loan, an additional borrowing
by the related Mortgagor subsequent to the Cut-off Date in accordance with the
related Mortgage Note.

         DRAW PERIOD: With respect to any HELOC Mortgage Loan, the period during
which the related Mortgagor is permitted to make Draws.

         DUE DATE: With respect to each Mortgage Loan or HELOC Mortgage Loan,
the date in each month on which its Monthly Payment is due, exclusive of any
days of grace.

         DUE PERIOD: With respect to any Payment Date and the Mortgage Loans,
the period commencing on the second day of the month immediately preceding the
month in which such Payment Date occurs and ending on the first day of the month
in which such Payment Date occurs. With respect to any Payment Date and the
HELOC Mortgage Loans, the period commencing on the 11th of the month immediately
preceding the month in which such Payment Date occurs and ending on the 10th day
of the month in which such Payment Date occurs, or, in the case of the first Due
Period, the period commencing on June 8, 2005 and ending on July 10, 2005.

         ELIGIBLE ACCOUNT: An account that is any of the following: (i) a
segregated account maintained with a federal or state chartered depository
institution (A) the short-term obligations of which are rated A-1+ or better by
Standard & Poor's and P-1 by Moody's at the time of any deposit therein or (B)
fully insured to the limits established by the FDIC, PROVIDED that any deposits
not so insured shall, to the extent acceptable to the Rating Agencies, the
Insurer and the Note Insurer, as evidenced in writing, be maintained such that
(as evidenced by an Opinion of Counsel delivered to the Indenture Trustee, the
Note Insurer, the Insurer and the Rating Agencies) the Indenture Trustee has a
claim with respect to the funds in such account or a perfected first security
interest against any collateral (which shall be limited to Eligible Investments)
securing such funds that is superior to claims of any other depositors or
creditors of the depository institution with which such account is maintained,
(ii) a segregated trust account or accounts maintained with a federal or state
chartered depository institution or trust company subject to regulations
regarding fiduciary funds on deposit similar to Title 12 of the Code of Federal
Regulations Section 9.10(b), which, in either case, has corporate trust powers,
acting in its fiduciary capacity, or (iii) in the case of the Collection Account
or Servicing Account, either (A) a trust account or accounts maintained at the
corporate trust department of the Indenture Trustee or the Securities
Administrator or (B) an account or accounts maintained at the corporate trust
department of the HELOC Back-Up Servicer or RMBS Master Servicer, as applicable
(or an affiliate thereof), as long as their short term debt obligations are
rated F-1 by Fitch Ratings, P-1 by Moody's and A-1 by Standard & Poor's or
better and their long term debt obligations are rated A by Fitch Ratings, A2 by
Moody's and A by Standard & Poor's or better, or (iv) an account or accounts of
a depository institution acceptable to the Rating Agencies as evidenced in
writing by the Rating Agencies that use of any such account as the Collection
Account, Protected Account or the Payment Account will not reduce the rating
assigned to any of the Securities by such Rating Agency below investment grade
without taking into account the Note Insurance Policy and the Insurance Policy
and acceptable to the Note Insurer and the Insurer as evidenced in writing.

         ELIGIBLE INVESTMENTS: One or more of the following:

                           (i) obligations of or guaranteed as to principal and
         interest by the United States or any agency or instrumentality thereof
         when such obligations are backed by the full faith and credit of the
         United States;

                           (ii) repurchase agreements on obligations specified
         in clause (i) maturing not more than one month from the date of
         acquisition thereof, provided that the unsecured obligations of the
         party agreeing to repurchase such obligations are at the time rated by
         the Rating Agencies in their respective highest short-term rating
         available;

                           (iii) federal funds, certificates of deposit, demand
         deposits, time deposits and bankers' acceptances (which shall each have
         an original maturity of not more than 90 days and, in the case of
         bankers' acceptances, shall in no event have an original maturity of
         more than 365 days or a remaining maturity of more than 30 days)
         denominated in United States dollars of any U.S. depository institution
         or trust company incorporated under the laws of the United States or
         any state thereof or of any domestic branch of a foreign depository
         institution or trust company; provided that the debt obligations of
         such depository institution or trust company (or, if the only Rating
         Agency is Standard & Poor's, in the case of the principal depository
         institution in a depository institution holding company, debt
         obligations of the depository institution holding company) at the date
         of acquisition thereof have been rated by the Rating Agencies in their
         respective highest short-term rating available; and provided further
         that, if the only Rating Agency is Standard & Poor's and if the
         depository or trust company is a principal subsidiary of a bank holding
         company and the debt obligations of such subsidiary are not separately
         rated, the applicable rating shall be that of the bank holding company;
         and, provided further that, if the original maturity of such short-term
         obligations of a domestic branch of a foreign depository institution or
         trust company shall exceed 30 days, the short-term rating of such
         institution shall be A-1+ in the case of Standard & Poor's if Standard
         & Poor's is the Rating Agency;

                           (iv) commercial paper (having original maturities of
         not more than 365 days) of any corporation incorporated under the laws
         of the United States or any state thereof which on the date of
         acquisition has been rated by Moody's and Standard & Poor's in their
         highest short-term ratings available; provided that such commercial
         paper shall have a remaining maturity of not more than 30 days;

                           (v) a money market fund or a qualified investment
         fund rated by Moody's in its highest long-term ratings available and
         rated AAAm or AAAm-G by Standard & Poor's, including any such funds for
         which Deutsche Bank National Trust Company (or any successor Indenture
         Trustee) or the Securities Administrator or any affiliate thereof
         serves as an investment advisor, manager, administrator, shareholder,
         servicing agent, and/or custodian or sub-custodian; and

                           (vi) other obligations or securities that are
         acceptable to each Rating Agency as a Permitted Investment hereunder
         and will not reduce the rating assigned to any Class of Notes (without
         taking the Note Insurance Policy or Insurance Policy into account) by
         such Rating Agency below the lower of the then-current rating or the
         rating assigned to such Notes as of the Closing Date by such Rating
         Agency, as evidenced in writing; and

                           (vii) any investment approved in writing by each of
         the Rating Agencies, the Insurer and the Note Insurer.

Each of the Indenture Trustee and the Securities Administrator may purchase from
or sell to itself or an affiliate, as principal or agent, the Eligible
Investments listed above.

PROVIDED, HOWEVER, that no instrument shall be an Eligible Investment if it
represents, either (1) the right to receive only interest payments with respect
to the underlying debt instrument or (2) the right to receive both principal and
interest payments derived from obligations underlying such instrument and the
principal and interest payments with respect to such instrument provide a yield
to maturity greater than 120% of the yield to maturity at par of such underlying
obligations.

         ELIGIBLE SUBSTITUTE MORTGAGE LOAN: A Mortgage Loan substituted by the
Seller for a Deleted Mortgage Loan which must, on the date of such substitution,
as confirmed in an Officer's Certificate delivered to the Indenture Trustee, (i)
have an outstanding principal balance, after deduction of the principal portion
of the monthly payment due in the month of substitution (or in the case of a
substitution of more than one Mortgage Loan for a Deleted Mortgage Loan, an
aggregate outstanding principal balance, after such deduction), not in excess of
the outstanding principal balance of the Deleted Mortgage Loan (the amount of
any shortfall to be deposited by the Seller in the related Collection Account in
the month of substitution); (ii) comply with each non-statistical representation
and warranty set forth in Section 3.1(b) of the Mortgage Loan Purchase Agreement
as of the date of substitution; (iii) have a Mortgage Rate no lower than and not
more than 1% per annum higher than the Mortgage Rate of the Deleted Mortgage
Loan as of the date of substitution; (iv) have a Loan-to-Value Ratio, or
Combined-Loan-to-Value Ratio in the case of a HELOC Mortgage Loan, at the time
of substitution no higher than that of the Deleted Mortgage Loan at the time of
substitution; (v) have a remaining term to stated maturity not greater than (and
not more than one year less than) that of the Deleted Mortgage Loan; (vi) not be
30 days or more delinquent; (vii) be an adjustable-rate first lien Mortgage
Loan, if being substituted for an ARM Loan; (viii) be a fixed-rate first lien
Mortgage Loan, if being substituted for a Fixed Rate Loan; (ix) in the case of a
HELOC Mortgage Loan, have a Maximum Mortgage Rate based on the Index, determined
in accordance with then current underwriting standards; (x) in the case of a
HELOC Mortgage Loan, have a Margin that is not less than the Margin of the
Deleted Mortgage Loan and not more than 1% higher than the Margin for the
Deleted Mortgage Loan and (xi) in the case of a HELOC Mortgage Loan, have a
Mortgage of the same or higher level of priority as the Mortgage relating to the
Deleted Mortgage Loan as of the date of substitution.

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

         EVENT OF DEFAULT: Any one of the following: (a) the failure by the
Issuer to pay Accrued Note Interest on any Class of Notes, other than the Class
N Notes, with respect to a Payment Date on such Payment Date; (b) a default by
the Issuer in the observance of certain negative covenants in the Indenture; (c)
a default by the Issuer in the observance of any other covenant of the
Indenture, and the continuation of any such default for a period of thirty days
after notice to the Issuer, Insurer and the Note Insurer by the Indenture
Trustee or, if a Note Insurer Default, exists, by the Holders of at least 25% of
the aggregate Note Principal Balance of the Notes, as applicable; (d) any
representation or warranty made by the Issuer in the Indenture or in any Note or
other writing delivered pursuant thereto having been incorrect in a material
respect as of the time made, and the circumstance in respect of which such
representation or warranty is incorrect not having been cured within thirty days
after notice thereof is given to the Issuer by the Indenture Trustee, Insurer or
by the Holders of at least 25% of the aggregate Note Principal Balance of the
Notes, as applicable; (e) certain events of bankruptcy, insolvency, receivership
or reorganization of the Issuer; or (f) the failure by the Issuer on the Final
Scheduled Payment Date to pay all Accrued Note Interest, all remaining Basis
Risk Shortfall Carry-Forward Amounts or Net WAC Carry-Forward Shortfall Amounts,
as applicable, and to reduce the Note Principal Balances of all of the Notes to
zero.

         EVENT OF MASTER SERVICER TERMINATION: With respect to the RMBS Master
Servicing Agreement, a Servicing Default as defined in Section 6.01 of the RMBS
Master Servicing Agreement.

         EXCESS BASIS RISK CAPACITY: With respect to each Derivative Contract
and any Payment Date, an amount equal to the excess, if any, of the Derivative
Contract Formula Amount with respect to such Derivative Contract for such
Payment Date over the Basis Risk Shortfall Carry-Forward Amount with respect to
the related Class of Notes for such Payment Date.

         EXCESS BASIS RISK SHORTFALL CARRY-FORWARD AMOUNT: With respect to the
Class II-A-1, Class II-A-2 and Class V-A-2 Notes and Class II-A-3 Components for
any Payment Date, an amount equal to the excess, if any, of the Basis Risk
Shortfall Carry-Forward Amount with respect to such Class of Notes or Class
II-A-3 Components for such Payment Date over the Derivative Contract Formula
Amount with respect to the related Derivative Contract for such Payment Date.

         EXCESS DERIVATIVE PAYMENT AMOUNT: For any Payment Date, the sum of (a)
the excess of amounts payable from the Corridor Contract on that Payment Date
over the amount of Basis Risk Shortfall Carry-Forward Amounts payable to the
Class II-A-1 Notes, Class II-A-2 Notes and Class II-A-3 Components on that
Payment Date and (b) the excess of amounts payable from the Cap Contract on that
Payment Date over the amount of Basis Risk Shortfall Carry-Forward Amounts
payable to the related Class V-A-2 Notes on that Payment Date.

         EXCESS OVERCOLLATERALIZATION AMOUNT: For any Payment Date and Loan
Group VI the amount by which the related Overcollateralized Amount, assuming the
full Investor Principal Distribution Amount was paid on the Class VI-A Notes for
such Payment Date, exceeds the related Overcollateralization Target Amount;
provided, however, that following the occurrence of a Rapid Amortization Event
the Excess Overcollateralization Amount shall be zero.

         EXCHANGE ACT: The Securities Exchange Act of 1934, as amended, and the
rules and regulations promulgated thereunder.

         EXPENSES: The meaning specified in Section 7.02 of the Trust Agreement.

         FANNIE MAE: Fannie Mae (formerly, the Federal National Mortgage
Association), or any successor thereto.

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

         FINAL CERTIFICATION: The final certification delivered by the Custodian
pursuant to Section 2.03(a)(i) of the Indenture and in the form attached as
Exhibit Two thereto.

         FINAL PAYMENT DATE: With respect to the Class VI-A Notes, the Payment
Date occurring in August 2035.

         FINAL SCHEDULED PAYMENT DATE: With respect to each Class of Notes,
other than the Class V-A, Class V-M, Class V-B Notes and Class VI-A Notes, the
Payment Date in September 2045. With respect to the Class V-A, Class V-M and the
Class V-B Notes, the Payment Date in September 2035. With respect to the Class
VI-A Notes, the Trust shall terminate upon notice to the Indenture Trustee of
the later of (A) payment in full of all amounts owing on the Class VI-A Notes
and to the Insurer unless the Insurer shall otherwise consent and (B) the
earliest of (i) the final payment or other liquidation of the last HELOC
Mortgage Loan remaining in the Trust; (ii) the optional purchase by the Insurer
or Holder of the Trust Certificates, or, if there is no single Holder, the
majority Holder of the Trust Certificates, of the HELOC Mortgage Loans and (iii)
the Payment Date in August 2035.

         FIXED RATE LOANS: At any time, collectively, all the Mortgage Loans,
excluding HELOC Mortgage Loans, which have fixed Mortgage Rates.

         FIXED HELOC MORTGAGE LOAN RATE BALANCES: The aggregate Stated Principal
Balance of all Fixed Teaser Rate Balances.

         FIXED TEASER RATE BALANCE: The Stated Principal Balance of any HELOC
Mortgage Loan with respect to which the Fixed Teaser Rate is in effect.

         FIXED TEASER RATE: With respect to any HELOC Mortgage Loan that permits
the Mortgagor to pay an initial fixed rate of interest on such HELOC Mortgage
Loan for three months prior to such HELOC Mortgage Loan converting to a variable
rate of interest, the fixed interest rate in effect for such three month period.

         FLOATING ALLOCATION PERCENTAGE: For any Payment Date, the percentage
equivalent of a fraction with a numerator of the Invested Amount at the end of
the previous Due Period (in the case of the first Payment Date, the Invested
Amount as of the Closing Date) and a denominator equal to the sum of (i) the
Group VI Pool Balance and (ii) the Group VI Pre-Funded Amount, in each case at
the end of the previous Due Period (in the case of the first Payment Date, the
Group VI Cut-off Date Balance), provided such percentage shall not be greater
than 100%.

         FORECLOSURE PROFIT: With respect to a Liquidated Mortgage Loan that is
not a HELOC Mortgage Loan, the amount, if any, by which (i) the aggregate of its
Net Liquidation Proceeds exceeds (ii) the related Stated Principal Balance (plus
accrued and unpaid interest thereon at the applicable Mortgage Rate from the
date interest was last paid through the date of receipt of the final Liquidation
Proceeds) of such Liquidated Mortgage Loan immediately prior to the final
recovery of its Liquidation Proceeds. With respect to a Liquidated Mortgage Loan
that is a HELOC Mortgage Loan, the amount, if any, by which (i) the related
aggregate Net Recoveries exceed (ii) the related Stated Principal Balance
(without giving effect to any reduction thereto in respect of any prior
Charge-Off Amounts) immediately prior to receipt of the final Recoveries plus
accrued and unpaid interest thereon at the applicable Mortgage Rate from the
date interest was last paid through the date of receipt of the final Recoveries.

         FREDDIE MAC: Freddie Mac (also known as the Federal Home Loan Mortgage
Corporation), or any successor thereto.

         FUNDING PERIOD: With respect to the Group I Loans, the period from the
Closing Date until the earlier of (i) the date on which the amount on deposit in
the Group I Pre-Funding Account is reduced to less than $50,000, (ii) an RMBS
Servicer Servicing Default or (iii) July 31, 2005. With respect to the Group
II-C Loans, the period from the Closing Date until the earlier of (i) the date
on which the amount on deposit in the Group II-C Pre-Funding Account is reduced
to less than $50,000, (ii) an RMBS Servicer Servicing Default or (iii) July 31,
2005. With respect to the Group II-NC Loans, the period from the Closing Date
until the earlier of (i) the date on which the amount on deposit in the Group
II-NC Pre-Funding Account is reduced to less than $50,000, (ii) an RMBS Servicer
Servicing Default or (iii) July 31, 2005. With respect to the Group III Loans,
the period from the Closing Date until the earlier of (i) the date on which the
amount on deposit in the Group III Pre-Funding Account is reduced to less than
$50,000, (ii) an RMBS Servicer Servicing Default or (iii) July 31, 2005. With
respect to the Group IV Loans, the period from the Closing Date until the
earlier of (i) the date on which the amount on deposit in the Group IV
Pre-Funding Account is reduced to less than $50,000, (ii) an RMBS Servicer
Servicing Default or (iii) July 31, 2005. With respect to the Group V Loans, the
period from the Closing Date until the earlier of (i) the date on which the
amount on deposit in the Group V Pre-Funding Account is reduced to less than
$50,000, (ii) RMBS Servicer Servicing Default or (iii) July 31, 2005. With
respect to the HELOC Mortgage Loans, the period from the Closing Date until the
earlier of (i) the date on which the amount on deposit in the Group VI
Pre-Funding Account is reduced to less than $50,000, (ii) a HELOC Servicer
Servicing Default or (iii) July 31, 2005.

         GRANT: Pledge, bargain, sell, warrant, alienate, remise, release,
convey, assign, transfer, create, and grant a lien upon and a security interest
in and right of set-off against, deposit, set over and confirm pursuant to the
Indenture. A Grant of the Collateral or of any other agreement or instrument
shall include all rights, powers and options (but none of the obligations) of
the granting party thereunder, including the immediate and continuing right to
claim for, collect, receive and give receipt for principal and interest payments
in respect of such collateral or other agreement or instrument and all other
moneys payable thereunder, to give and receive notices and other communications,
to make waivers or other agreements, to exercise all rights and options, to
bring proceedings in the name of the granting party or otherwise, and generally
to do and receive anything that the granting party is or may be entitled to do
or receive thereunder or with respect thereto.

         GROSS MARGIN: With respect to any ARM Loan, the percentage set forth as
the "Gross Margin" for such Mortgage Loan on the Mortgage Loan Schedule, as
adjusted from time to time in accordance with the terms of the RMBS Servicing
Agreement.

         GROUP I AVAILABLE FUNDS: For any Payment Date, an amount equal to the
amount received by the Indenture Trustee and available in the Payment Account on
that Payment Date in respect of the Group I Loans. The Group I Available Funds
generally includes: (1) all previously undistributed payments on account of
principal (including the principal portion of Monthly Payments, Principal
Prepayments and the principal amount of Net Liquidation Proceeds) and all
previously undistributed payments on account of interest received after the
Cut-Off Date and on or prior to the related Determination Date from the Group I
Loans and (2) any Monthly Advances and Compensating Interest Payments on the
Group I Loans made by the RMBS Servicer for such Payment Date and (3) any
amounts reimbursed by the RMBS Servicer, the Indenture Trustee or the Securities
Administrator in connection with losses on certain eligible investments in the
Protected Accounts, Securities Administrator Collection Account or Payment
Account, as applicable, (4) amounts transferred from the Group I Interest
Coverage Account and, at the end of the Funding Period, any excess amounts
transferred from the Group I Pre-Funding Account, and (5) interest earned on
amounts on deposit in the Group I Pre-Funding Account, and is net of (6) fees
payable to, and other amounts reimbursable to, the Indenture Trustee, RMBS
Master Servicer, the RMBS Servicer, the Securities Administrator and the Owner
Trustee and other amounts as provided in the Basic Documents allocable to the
Group I Loans, or, if any such reimbursable amounts are not allocable to the
Group I Loans, then the Group I Loans' pro rata share of such amounts. For
purposes of this definition, "pro rata share" shall be a fraction, the numerator
of which is equal to the aggregate of the Stated Principal Balance of the Group
I Loans for such Payment Date and the denominator of which is equal to the Pool
Balance for such Payment Date.

         GROUP I CUT-OFF DATE BALANCE: The sum of (x) the aggregate Stated
Principal Balance of the Group I Loans as of the Cut-off Date and (y) the Group
I Original Pre-Funded Amount.

         GROUP I INTEREST COVERAGE ACCOUNT: A trust account that the Indenture
Trustee will establish pursuant to Section 3.31 of the Indenture for the benefit
of the Class I-A Notes and Class M Notes. The amount to be deposited in the
Group I Interest Coverage Account on the Closing Date will be $844,316.26.

         GROUP I LOAN: A Mortgage Loan in Loan Group I.

         GROUP I ORIGINAL PRE-FUNDED AMOUNT: The amount deposited in the Group I
Pre-Funding Account on the Closing Date by the Depositor, which will be
$205,673,646.01.

         GROUP I PRE-FUNDED AMOUNT: The amount on deposit in the Group I
Pre-Funding Account on any date of determination.

         GROUP I PRE-FUNDING ACCOUNT: An account established by the Indenture
Trustee pursuant to Section 3.32 of the Indenture for the benefit of the Class
I-A, Class M and Class B Notes and funded on the Closing Date by the Depositor
with the Group I Original Pre-Funded Amount.

         GROUP I SUBSEQUENT MORTGAGE LOAN: A Mortgage Loan sold by the Depositor
to the Trust Estate pursuant to Section 2.05 of the Indenture, such Mortgage
Loan being identified on the related Mortgage Loan Schedule attached to the
Group I Subsequent Transfer Instrument.

         GROUP I SUBSEQUENT MORTGAGE LOAN PURCHASE AGREEMENT: The Subsequent
Mortgage Loan Purchase Agreement, dated as of the applicable Subsequent Transfer
Date, between the Seller, as seller, and the Purchaser, as purchaser, relating
to the sale, transfer and assignment of the Group I Subsequent Mortgage Loans.

         GROUP I SUBSEQUENT TRANSFER INSTRUMENT: With respect to the Group I
Subsequent Mortgage Loans, the subsequent transfer instrument, dated as of the
applicable Subsequent Transfer Date, between American Home Mortgage Securities
LLC, as depositor, and Deutsche Bank National Trust Company, as indenture
trustee.

         GROUP II-C AVAILABLE FUNDS: For any Payment Date, an amount equal to
the amount received by the Indenture Trustee and available in the Payment
Account on that Payment Date in respect of the Group II-C Loans. The Group II-C
Available Funds generally includes: (1) all previously undistributed payments on
account of principal (including the principal portion of Monthly Payments,
Principal Prepayments and the principal amount of Net Liquidation Proceeds) and
all previously undistributed payments on account of interest received after the
Cut-Off Date and on or prior to the related Determination Date from the Group
II-C Loans and (2) any Monthly Advances and Compensating Interest Payments on
the Group II-C Loans made by the RMBS Servicer for such Payment Date and (3) any
amounts reimbursed by the RMBS Servicer, the Indenture Trustee or the Securities
Administrator in connection with losses on certain eligible investments in the
Protected Accounts, Securities Administrator Collection Account or Payment
Account, as applicable, (4) amounts transferred from the Group II-C Interest
Coverage Account and, at the end of the Funding Period, any excess amounts
transferred from the Group II-C Pre-Funding Account, and (5) interest earned on
amounts on deposit in the Group II-C Pre-Funding Account, and is net of (6) fees
payable to, and other amounts reimbursable to the Indenture Trustee, the RMBS
Master Servicer, the RMBS Servicer, the Securities Administrator, the Owner
Trustee and other amounts as provided in the Basic Documents allocable to the
Group II-C Loans, or, if any such reimbursable amounts are not allocable to the
Group II-C Loans, then the Group II-C Loans' pro rata share of such amounts. For
purposes of this definition, "pro rata share" shall be a fraction, the numerator
of which is equal to the aggregate of the Stated Principal Balance of the Group
II-C Loans for such Payment Date and the denominator of which is equal to the
Pool Balance for such Payment Date.

         GROUP II-C CUT-OFF DATE BALANCE: The sum of (x) the aggregate Stated
Principal Balance of the Group II-C Loans as of the Cut-off Date and (y) the
Group II-C Original Pre-Funded Amount.

         GROUP II-C INTEREST COVERAGE ACCOUNT: A trust account that the
Indenture Trustee will establish pursuant to Section 3.31 of the Indenture for
the benefit of the Class II-A-1 Notes, Class M Notes and Component II-A-3-C. The
amount to be deposited in the Group II-C Interest Coverage Account on the
Closing date will be $728,655.66.

         GROUP II-C LOAN: A Mortgage Loan in Loan Group II-C.

         GROUP II-C ORIGINAL PRE-FUNDED AMOUNT: The amount deposited in the
Group II-C Pre-Funding Account on the Closing Date by the Depositor, which will
be $131,138,973.25.

         GROUP II-C PRE-FUNDED AMOUNT: The amount on deposit in the Group II-C
Pre-Funding Account on any date of determination.

         GROUP II-C PRE-FUNDING ACCOUNT: An account established by the Indenture
Trustee pursuant to Section 3.32 of the Indenture for the benefit of the Class
II-A-1, Class M and Class B Notes and Component II-A-3-C and funded on the
Closing Date by the Depositor with the Group II-C Original Pre-Funded Amount.

         GROUP II-C SUBSEQUENT MORTGAGE LOAN: A Mortgage Loan sold by the
Depositor to the Trust Estate pursuant to Section 2.06 of the Indenture, such
Mortgage Loan being identified on the related Mortgage Loan Schedule attached to
the Group II-C Subsequent Transfer Instrument.

         GROUP II-C SUBSEQUENT MORTGAGE LOAN PURCHASE AGREEMENT: The Subsequent
Mortgage Loan Purchase Agreement, dated as of the applicable Subsequent Transfer
Date, between the Seller, as seller, and the Purchaser, as purchaser, relating
to the sale, transfer and assignment of the Group II-C Subsequent Mortgage
Loans.

         GROUP II-C SUBSEQUENT TRANSFER INSTRUMENT: With respect to the Group
II-C Subsequent Mortgage Loans, the subsequent transfer instrument, dated as of
the applicable Subsequent Transfer Date, between American Home Mortgage
Securities, LLC, as depositor, and Deutsche Bank National Trust Company, as
indenture trustee.

         GROUP II-NC AVAILABLE FUNDS: For any Payment Date, an amount equal to
the amount received by the Indenture Trustee and available in the Payment
Account on that Payment Date in respect of the Group II-NC Loans. The Group
II-NC Available Funds generally includes: (1) all previously undistributed
payments on account of principal (including the principal portion of Monthly
Payments, Principal Prepayments and the principal amount of Net Liquidation
Proceeds) and all previously undistributed payments on account of interest
received after the Cut-Off Date and on or prior to the related Determination
Date from the Group II-NC Loans and (2) any Monthly Advances and Compensating
Interest Payments on the Group II-NC Loans made by the RMBS Servicer for such
Payment Date and (3) any amounts reimbursed by the RMBS Servicer, the Indenture
Trustee or the Securities Administrator in connection with losses on certain
eligible investments in the Protected Accounts, Securities Administrator
Collection Account or Payment Account, as applicable, (4) amounts transferred
from the Group II-NC Interest Coverage Account and, at the end of the Funding
Period, any excess amounts transferred from the Group II-NC Pre-Funding Account,
and (5) interest earned on amounts on deposit in the Group II-NC Pre-Funding
Account, and is net of (6) fees payable to, and other amounts reimbursable to
the Indenture Trustee, the RMBS Master Servicer, the RMBS Servicer, the
Securities Administrator, the Owner Trustee and other amounts as provided in the
Basic Documents allocable to the Group II-NC Loans, or, if any such reimbursable
amounts are not allocable to the Group II-NC Loans, then the Group II-NC Loans'
pro rata share of such amounts. For purposes of this definition, "pro rata
share" shall be a fraction, the numerator of which is equal to the aggregate of
the Stated Principal Balance of the Group II-NC Loans for such Payment Date and
the denominator of which is equal to the Pool Balance for such Payment Date.

         GROUP II-NC CUT-OFF DATE BALANCE: The sum of (x) the aggregate Stated
Principal Balance of the Group II-NC Loans as of the Cut-off Date and (y) the
Group II-NC Original Pre-Funded Amount.

         GROUP II-NC INTEREST COVERAGE ACCOUNT: A trust account that the
Indenture Trustee will establish pursuant to Section 3.31 of the Indenture for
the benefit of the Class II-A-2 Notes, Class M Notes and Component II-A-3-NC.
The amount to be deposited in the Group II-NC Interest Coverage Account on the
Closing date will be $879,309.45.

         GROUP II-NC LOAN: A Mortgage Loan in Loan Group II-NC.

         GROUP II-NC ORIGINAL PRE-FUNDED AMOUNT: The amount deposited in the
Group II-NC Pre-Funding Account on the Closing Date by the Depositor, which will
be $158,233,429.48.

         GROUP II-NC PRE-FUNDED AMOUNT: The amount on deposit in the Group II-NC
Pre-Funding Account on any date of determination.

         GROUP II-NC PRE-FUNDING ACCOUNT: An account established by the
Indenture Trustee pursuant to Section 3.32 of the Indenture for the benefit of
the Class II-A-2, Class M and Class B Notes and Component II-A-3-NC and funded
on the Closing Date by the Depositor with the Group II-NC Original Pre-Funded
Amount.

         GROUP II-NC SUBSEQUENT MORTGAGE LOAN: A Mortgage Loan sold by the
Depositor to the Trust Estate pursuant to Section 2.07 of the Indenture, such
Mortgage Loan being identified on the related Mortgage Loan Schedule attached to
the Group II-NC Subsequent Transfer Instrument.

         GROUP II-NC SUBSEQUENT MORTGAGE LOAN PURCHASE AGREEMENT: The Subsequent
Mortgage Loan Purchase Agreement, dated as of the applicable Subsequent Transfer
Date, between the Seller, as seller, and the Purchaser, as purchaser, relating
to the sale, transfer and assignment of the Group II-NC Subsequent Mortgage
Loans.

         GROUP II-NC SUBSEQUENT TRANSFER INSTRUMENT: With respect to the Group
II-NC Subsequent Mortgage Loans, the subsequent transfer instrument, dated as of
the applicable Subsequent Transfer Date, between American Home Mortgage
Securities, LLC, as depositor, and Deutsche Bank National Trust Company, as
indenture trustee.

         GROUP III AVAILABLE FUNDS: For any Payment Date, an amount equal to the
amount received by the Indenture Trustee and available in the Payment Account on
that Payment Date in respect of the Group III Loans. The Group III Available
Funds generally includes: (1) all previously undistributed payments on account
of principal (including the principal portion of Monthly Payments, Principal
Prepayments and the principal amount of Net Liquidation Proceeds) and all
previously undistributed payments on account of interest received after the
Cut-Off Date and on or prior to the related Determination Date from the Group
III Loans and (2) any Monthly Advances and Compensating Interest Payments on the
Group III Loans made by the RMBS Servicer for such Payment Date and (3) any
amounts reimbursed by the RMBS Servicer, the Indenture Trustee or the Securities
Administrator in connection with losses on certain eligible investments in the
Protected Accounts, Securities Administrator Collection Account or Payment
Account, as applicable, (4) amounts transferred from the Group III Interest
Coverage Account and, at the end of the Funding Period, any excess amounts
transferred from the Group III Pre-Funding Account, and (5) interest earned on
amounts on deposit in the Group III Pre-Funding Account, and is net of (6) fees
payable to, and other amounts reimbursable to the Indenture Trustee, the RMBS
Master Servicer, the RMBS Servicer, the Securities Administrator, the Owner
Trustee and other amounts as provided in the Basic Documents allocable to the
Group III Loans, or, if any such reimbursable amounts are not allocable to the
Group III Loans, then the Group III Loans' pro rata share of such amounts. For
purposes of this definition, "pro rata share" shall be a fraction, the numerator
of which is equal to the aggregate of the Stated Principal Balance of the Group
III Loans for such Payment Date and the denominator of which is equal to the
Pool Balance for such Payment Date.

         GROUP III CUT-OFF DATE BALANCE: The sum of (x) the aggregate Stated
Principal Balance of the Group III Loans as of the Cut-off Date and (y) the
Group III Original Pre-Funded Amount.

         GROUP III INTEREST COVERAGE ACCOUNT: A trust account that the Indenture
Trustee will establish pursuant to Section 3.31 of the Indenture for the benefit
of the Class III-A Notes and Class M Notes. The amount to be deposited in the
Group III Interest Coverage Account on the Closing date will be $2,414,404.44.

         GROUP III LOAN: A Mortgage Loan in Loan Group III.

         GROUP III ORIGINAL PRE-FUNDED AMOUNT: The amount deposited in the Group
III Pre-Funding Account on the Closing Date by the Depositor, which will be
$371,953,202.46.

         GROUP III PRE-FUNDED AMOUNT: The amount on deposit in the Group III
Pre-Funding Account on any date of determination.

         GROUP III PRE-FUNDING ACCOUNT: An account established by the Indenture
Trustee pursuant to Section 3.32 of the Indenture for the benefit of the Class
III-A, Class M and Class B Notes and funded on the Closing Date by the Depositor
with the Group III Original Pre-Funded Amount.

         GROUP III SUBSEQUENT MORTGAGE LOAN: A Mortgage Loan sold by the
Depositor to the Trust Estate pursuant to Section 2.08 of the Indenture, such
Mortgage Loan being identified on the related Mortgage Loan Schedule attached to
the Group III Subsequent Transfer Instrument.

         GROUP III SUBSEQUENT MORTGAGE LOAN PURCHASE AGREEMENT: The Subsequent
Mortgage Loan Purchase Agreement, dated as of the applicable Subsequent Transfer
Date, between the Seller, as seller, and the Purchaser, as purchaser, relating
to the sale, transfer and assignment of the Group III Subsequent Mortgage Loans.

         GROUP III SUBSEQUENT TRANSFER INSTRUMENT: With respect to the Group III
Subsequent Mortgage Loans, the subsequent transfer instrument, dated as of the
applicable Subsequent Transfer Date, between American Home Mortgage Securities
LLC, as depositor, and Deutsche Bank National Trust Company, as indenture
trustee.

         GROUP IV AVAILABLE FUNDS: For any Payment Date, an amount equal to the
amount received by the Indenture Trustee and available in the Payment Account on
that Payment Date in respect of the Group IV Loans. The Group IV Available Funds
generally includes: (1) all previously undistributed payments on account of
principal (including the principal portion of Monthly Payments, Principal
Prepayments and the principal amount of Net Liquidation Proceeds) and all
previously undistributed payments on account of interest received after the
Cut-Off Date and on or prior to the related Determination Date from the Group IV
Loans and (2) any Monthly Advances and Compensating Interest Payments on the
Group IV Loans made by the RMBS Servicer for such Payment Date and (3) any
amounts reimbursed by the RMBS Servicer, the Indenture Trustee or the Securities
Administrator in connection with losses on certain eligible investments in the
Protected Accounts, Securities Administrator Collection Account or Payment
Account, as applicable, (4) amounts transferred from the Group IV Interest
Coverage Account and, at the end of the Funding Period, any excess amounts
transferred from the Group IV Pre-Funding Account, and (5) interest earned on
amounts on deposit in the Group IV Pre-Funding Account, and is net of (6) fees
payable to, and other amounts reimbursable to the Indenture Trustee, the RMBS
Master Servicer, the RMBS Servicer, the Securities Administrator and the Owner
Trustee and other amounts as provided in the Basic Documents allocable to the
Group IV Loans, or, if any such reimbursable amounts are not allocable to the
Group IV Loans, then the Group IV Loans' pro rata share of such amounts. For
purposes of this definition, "pro rata share" shall be a fraction, the numerator
of which is equal to the aggregate of the Stated Principal Balance of the Group
IV Loans for such Payment Date and the denominator of which is equal to the Pool
Balance for such Payment Date.

         GROUP IV CUT-OFF DATE BALANCE: The sum of (x) the aggregate Stated
Principal Balance of the Group IV Loans as of the Cut-off Date and (y) the Group
IV Original Pre-Funded Amount.

         GROUP IV INTEREST COVERAGE ACCOUNT: A trust account that the Indenture
Trustee will establish pursuant to Section 3.31 of the Indenture for the benefit
of the Class IV-A Notes and Class M Notes. The amount to be deposited in the
Group IV Interest Coverage Account on the Closing date will be $1,073,128.38.

         GROUP IV LOAN: A Mortgage Loan in Loan Group IV.

         GROUP IV ORIGINAL PRE-FUNDED AMOUNT: The amount deposited in the Group
IV Pre-Funding Account on the Closing Date by the Depositor, which will be
$168,046,230.95.

         GROUP IV PRE-FUNDED AMOUNT: The amount on deposit in the Group IV
Pre-Funding Account on any date of determination.

         GROUP IV PRE-FUNDING ACCOUNT: An account established by the Indenture
Trustee pursuant to Section 3.32 of the Indenture for the benefit of the Class
IV-A, Class M and Class B Notes and funded on the Closing Date by the Depositor
with the Group IV Original Pre-Funded Amount.

         GROUP IV SUBSEQUENT MORTGAGE LOAN: A Mortgage Loan sold by the
Depositor to the Trust Estate pursuant to Section 2.09 of the Indenture, such
Mortgage Loan being identified on the related Mortgage Loan Schedule attached to
the Group IV Subsequent Transfer Instrument.

         GROUP IV SUBSEQUENT MORTGAGE LOAN PURCHASE AGREEMENT: The Subsequent
Mortgage Loan Purchase Agreement, dated as of the applicable Subsequent Transfer
Date, between the Seller, as seller, and the Purchaser, as purchaser, relating
to the sale, transfer and assignment of the Group IV Subsequent Mortgage Loans.

         GROUP IV SUBSEQUENT TRANSFER INSTRUMENT: With respect to the Group IV
Subsequent Mortgage Loans, the subsequent transfer instrument, dated as of the
applicable Subsequent Transfer Date, between American Home Mortgage Securities
LLC, as depositor, and Deutsche Bank National Trust Company, as indenture
trustee.

         GROUP V AVAILABLE FUNDS: For any Payment Date, an amount equal to the
amount received by the Indenture Trustee and available in the Payment Account on
that Payment Date in respect of the Group V Loans. The Group V Available Funds
generally includes: (1) all previously undistributed payments on account of
principal (including the principal portion of Monthly Payments, Principal
Prepayments and the principal amount of Net Liquidation Proceeds) and all
previously undistributed payments on account of interest received after the
Cut-Off Date and on or prior to the related Determination Date from the Group V
Loans and (2) any Monthly Advances and Compensating Interest Payments on the
Group V Loans made by the RMBS Servicer for such Payment Date and (3) any
amounts reimbursed by the RMBS Servicer, the Indenture Trustee or the Securities
Administrator in connection with losses on certain eligible investments in the
Protected Accounts, Securities Administrator Collection Account or Payment
Account, as applicable, (4) amounts transferred from the Group V Interest
Coverage Account and, at the end of the Funding Period, any excess amounts
transferred from the Group V Pre-Funding Account, and (5) interest earned on
amounts on deposit in the Group V Pre-Funding Account, and is net of (6) fees
payable to, and other amounts reimbursable to the Indenture Trustee, the RMBS
Master Servicer, the RMBS Servicer, the Securities Administrator and the Owner
Trustee and other amounts as provided in the Basic Documents allocable to the
Group V Loans and the Note Insurance Policy Premium Amount in respect of the
Class V-A-4-D Notes, or, if any such reimbursable amounts are not allocable to
the Group V Loans, then the Group V Loans' pro rata share of such amounts. For
purposes of this definition, "pro rata share" shall be a fraction, the numerator
of which is equal to the aggregate of the Stated Principal Balance of the Group
V Loans for such Payment Date and the denominator of which is equal to the Pool
Balance for such Payment Date.

         GROUP V CUT-OFF DATE BALANCE: The sum of (x) the aggregate Stated
Principal Balance of the Group V Loans as of the Cut-off Date and (y) the Group
V Original Pre-Funded Amount.

         GROUP V INTEREST COVERAGE ACCOUNT: A trust account that the Indenture
Trustee will establish pursuant to Section 3.31 of the Indenture for the benefit
of the Class V-A Notes and Class M Notes. The amount to be deposited in the
Group V Interest Coverage Account on the Closing date will be $1,845,589.96.

         GROUP V LOAN: A Mortgage Loan in Loan Group V.

         GROUP V ORIGINAL PRE-FUNDED AMOUNT: The amount deposited in the Group V
Pre-Funding Account on the Closing Date by the Depositor, which will be
$344,864,400.27.

         GROUP V PRE-FUNDED AMOUNT: The amount on deposit in the Group V
Pre-Funding Account on any date of determination.

         GROUP V PRE-FUNDING ACCOUNT: An account established by the Indenture
Trustee pursuant to Section 3.32 of the Indenture for the benefit of the Note
Insurer and the Class V-A, Class M and Class B Notes and funded on the Closing
Date by the Depositor with the Group V Original Pre-Funded Amount.

         GROUP V SUBSEQUENT MORTGAGE LOAN: A Mortgage Loan sold by the Depositor
to the Trust Estate pursuant to Section 2.10 of the Indenture, such Mortgage
Loan being identified on the related Mortgage Loan Schedule attached to the
Group V Subsequent Transfer Instrument.

         GROUP V SUBSEQUENT MORTGAGE LOAN PURCHASE AGREEMENT: The Subsequent
Mortgage Loan Purchase Agreement, dated as of the applicable Subsequent Transfer
Date, between the Seller, as seller, and the Purchaser, as purchaser, relating
to the sale, transfer and assignment of the Group V Subsequent Mortgage Loans.

         GROUP V SUBSEQUENT TRANSFER INSTRUMENT: With respect to the Group V
Subsequent Mortgage Loans, the subsequent transfer instrument, dated as of the
applicable Subsequent Transfer Date, between American Home Mortgage Securities
LLC, as depositor, and Deutsche Bank National Trust Company, as indenture
trustee.

         GROUP VI CUT-OFF DATE BALANCE: The sum of (x) the aggregate Stated
Principal Balance of the HELOC Mortgage Loans as of the Cut-off Date and (y) the
Group VI Original Pre-Funded Amount.

         GROUP VI DELINQUENT HELOC AMOUNT: With respect to any Payment Date, the
aggregate Stated Principal Balance of any Group VI Loans included in the Trust
which are 180 days or more delinquent, REO, in bankruptcy or in foreclosure.

         GROUP VI EXCESS SPREAD PERCENTAGE: With respect to any Payment Date,
the percentage equivalent of a fraction, (A) the numerator of which is the
product of (i) the excess of (x) the Investor Interest Collections on the Group
VI Loans for that Payment Date over (y) the sum of the Accrued Note Interest on
the Group VI Loans, the premium due to the Insurer under the Insurance Policy,
any Investor Charge-Off Amounts, any reimbursement amounts and other amounts
payable to the Insurer pursuant to the Insurance Agreement, and the related
servicing fee for such Payment Date and (ii) twelve (12), and (B) the
denominator of which is the aggregate Stated Principal Balance of the Group VI
Loans as of the beginning of the related Due Period.

         GROUP VI INTEREST COVERAGE ACCOUNT: A trust account that the Indenture
Trustee will establish pursuant to Section 3.31 of the Indenture for the benefit
of the Group VI Noteholders and the Insurer. The amount to be deposited in the
Group VI Interest Coverage Account on the Closing Date will be $646,930.04.

         GROUP VI LOAN: A HELOC Mortgage Loan in Loan Group VI.

         GROUP VI ORIGINAL PRE-FUNDED AMOUNT: The amount deposited in the Group
VI Pre-Funding Account on the Closing Date by the Depositor, which will be
$60,060,491.16.

         GROUP VI POOL BALANCE: For any Payment Date, an amount equal to the
aggregate of the Principal Balances of the HELOC Mortgage Loans at the end of
the related Due Period.

         GROUP VI PRE-FUNDED AMOUNT: The amount on deposit in the Group VI
Pre-Funding Account on any date of determination.

         GROUP VI PRE-FUNDING ACCOUNT: An account established by the Indenture
Trustee pursuant to Section 3.32 of the Indenture for the benefit of the Group
VI Noteholders and the Insurer and funded on the Closing Date by the Depositor
with the Group VI Original Pre-Funded Amount.

         GROUP VI SUBSEQUENT HELOC MORTGAGE LOAN: A HELOC sold by the Depositor
to the Trust Estate pursuant to Section 2.11 of the Indenture, such Mortgage
Loan being identified on the related Mortgage Loan Schedule attached to the
Group VI Subsequent Transfer Instrument.

         GROUP VI SUBSEQUENT HELOC MORTGAGE LOAN PURCHASE AGREEMENT: The
Subsequent Mortgage Loan Purchase Agreement, dated as of the applicable
Subsequent Transfer Date, between the Seller, as seller, and the Purchaser, as
purchaser, relating to the sale, transfer and assignment of the Group VI
Subsequent HELOC Mortgage Loans.

         GROUP VI SUBSEQUENT TRANSFER INSTRUMENT: With respect to the Group VI
subsequent HELOC Mortgage Loans, the subsequent transfer instrument, dated as of
the applicable Subsequent Transfer Date, between the Depositor and the Indenture
Trustee.

         HAZARDOUS MATERIALS: Any dangerous, toxic or hazardous pollutants,
chemicals, wastes, or substances, including, without limitation, those so
identified pursuant to the Comprehensive Environmental Response, Compensation
and Liability Act, 42 U.S.C. Section 9601 et seq., or any other environmental
laws now existing, and specifically including, without limitation, asbestos and
asbestos-containing materials, polychlorinated biphenyls, radon gas, petroleum
and petroleum products, urea formaldehyde and any substances classified as being
"in inventory", "usable work in progress" or similar classification which would,
if classified unusable, be included in the foregoing definition.

         HELOC BALANCE: With respect to any HELOC Mortgage Loan, the portion, if
any, of the Stated Principal Balance thereof subject to a variable Mortgage
Rate.

         HELOC BACK-UP SERVICER: GMAC Mortgage Corporation, a Pennsylvania
corporation, and its successors and assigns.

         HELOC BACK-UP SERVICING AGREEMENT: The HELOC Back-Up Servicing
Agreement dated as of June 22, 2005, among the HELOC Back-Up Servicer, Indenture
Trustee and Issuer.

         HELOC BACK-UP SERVICING FEE: With respect to each HELOC and any Payment
Date, the fee payable monthly to the HELOC Back-Up Servicer pursuant to the
HELOC Back-Up Servicing Agreement in respect of back-up servicing compensation
that accrues at an annual rate equal to the HELOC Back-Up Servicing Fee Rate
multiplied by the Stated Principal Balance of such HELOC as of the first day of
the related Due Period.

         HELOC BACK-UP SERVICING FEE RATE: With respect to any HELOC Mortgage
Loan, 0.02% per annum.

         HELOC MORTGAGE LOANS:  The HELOC Mortgage Loans in Loan Group VI.

         HELOC MORTGAGE LOAN SCHEDULE: The schedule of HELOC Mortgage Loans
attached as Exhibit A to the HELOC Servicing Agreement.

         HELOC SERVICER: American Home Mortgage Servicing, Inc., a Maryland
corporation, and its successors and assigns.

         HELOC SERVICER REMITTANCE DATE: The twenty-second (22nd) calendar day
of each month or, if such twenty-second (22nd) day is not a Business Day, then
the Business Day immediately preceding such twenty-second (22nd) day of the
month.

         HELOC SERVICER TERMINATION EVENT: A removal of the HELOC Servicer by
the Insurer for "cause." Cause shall mean any material breach of any obligation,
covenant, or trigger under the transaction documents subject to cure provisions
relating to such breach as agreed to by the parties. In particular, HELOC
Servicer Termination Events shall include:

         (a) The occurrence of a draw on the Insurance Policy which remains
unreimbursed for a period of 90 days;

         (b) Cumulative Charge-Off Amounts, as a percentage of the Group VI
Cut-off Date Balance, exceed the following:

         Months            Percentage
         -------           ----------
         0  - 12           1.00%
         13 - 24           2.00%
         25 - 36           3.00%
         37 - 48           4.00%
         49+               5.00%

         (c) American Home Mortgage Investment Corp. fails to have a Tangible
Net Worth of at least $530 million.

         HELOC SERVICING AGREEMENT: The Servicing Agreement, dated as of June
22, 2005, among the HELOC Servicer, HELOC Back-Up Servicer, Seller, Indenture
Trustee and Issuer.

         HELOC SERVICING FEE: With respect to each HELOC Mortgage Loan and any
Payment Date, the fee payable monthly to the HELOC Servicer in respect of
servicing compensation that accrues at an annual rate equal to the HELOC
Servicing Fee Rate multiplied by the Stated Principal Balance of such HELOC
Mortgage Loan as of the related Due Date in the related Due Period.

         HELOC SERVICING FEE RATE: With respect to any HELOC Mortgage Loan 0.50%
per annum.

         INDEMNIFIED PARTY: The meaning specified in Section 7.02 of the Trust
Agreement.

         INDEMNIFICATION AGREEMENT: The Indemnification Agreement dated as of
June 22, 2005 between Lehman Brothers Inc. and the Insurer, including any
amendments and supplements thereto in accordance with the terms thereof.

         INDENTURE: The indenture dated as of June 22, 2005, between the Issuer,
the Securities Administrator and the Indenture Trustee, relating to the American
Home Mortgage Investment Trust 2005-2 Notes.

         INDENTURE TRUSTEE: Deutsche Bank National Trust Company, and its
successors and assigns or any successor indenture trustee appointed pursuant to
the terms of the Indenture.

         INDENTURE TRUSTEE FEE: All earnings on the funds from time to time in
the Payment Account.

         INDEPENDENT: When used with respect to any specified Person, the Person
(i) is in fact independent of the Issuer, any other obligor on the Notes, the
Seller, the HELOC Back-Up Servicer, the RMBS Master Servicer, the Depositor,
American Home Mortgage Investment Corp. and any Affiliate of any of the
foregoing Persons, (ii) does not have any direct financial interest or any
material indirect financial interest in the Issuer, any such other obligor, the
Seller, the HELOC Back-Up Servicer, the RMBS Master Servicer, the Depositor,
American Home Mortgage Investment Corp. or any Affiliate of any of the foregoing
Persons and (iii) is not connected with the Issuer, any such other obligor, the
Seller, the HELOC Back-Up Servicer, the RMBS Master Servicer, the Depositor,
American Home Mortgage Investment Corp. or any Affiliate of any of the foregoing
Persons as an officer, employee, promoter, underwriter, trustee, partner,
director or person performing similar functions.

         INDEPENDENT CERTIFICATE: A certificate or opinion to be delivered to
the Indenture Trustee under the circumstances described in, and otherwise
complying with, the applicable requirements of Section 10.01 of the Indenture,
made by an independent appraiser or other expert appointed by an Issuer Request
and approved by the Indenture Trustee in the exercise of reasonable care, and
such opinion or certificate shall state that the signer has read the definition
of "Independent" in this Indenture and that the signer is Independent within the
meaning thereof.

         INDEX: With respect to any Mortgage Loan that is not a HELOC Mortgage
Loan, the index for the adjustment of the Mortgage Rate set forth as such in the
related Mortgage Note. With respect to any HELOC Mortgage Loan and any
Adjustment Date, the highest "prime rate" most recently published in the Wall
Street Journal. If the "prime rate" is no longer published, then the Index will
be a comparable independent index selected by the Seller.

         INITIAL HELOC: Any of the HELOC Mortgage Loans included in the Trust
Estate as of the Closing Date. The aggregate principal balance of the Initial
HELOCs as of the Cut-off Date is equal to approximately $180,181,473.48.

         INITIAL MORTGAGE LOAN: Any of the Mortgage Loans (other than HELOC
Mortgage Loans) included in the Trust Estate as of the Closing Date. The
aggregate principal balance of the Initial Mortgage Loans as of the Cut-off Date
is equal to approximately $4,140,031,477.30.

         INITIAL NOTE PRINCIPAL BALANCE: The Notes shall have the following
Initial Note Principal Balances:

                                        INITIAL NOTE PRINCIPAL
                           CLASS                BALANCE
                       ------------     ----------------------
                       I-A-1               $   456,354,000
                       I-A-2               $   228,175,000
                       I-A-3               $    76,058,000
                       II-A-1              $   462,292,000
                       II-A-2              $   557,806,000
                       II-A-3              $    50,000,000
                       III-A               $ 1,375,597,000
                       IV-A-1              $   200,000,000
                       IV-A-2              $   398,870,000
                       IV-A-3              $    22,564,000
                       V-A-1               $   127,900,000
                       V-A-2               $   581,158,000
                       V-A-3               $   243,690,000
                       V-A-4-A             $    88,000,000
                       V-A-4-B             $     6,827,000
                       V-A-4-C             $   115,717,000
                       V-A-4-D             $   115,717,000
                       VI-A                $   237,840,000
                       M-1                 $    60,041,000
                       M-2                 $    41,403,000
                       M-3                 $    24,841,000
                       M-4                 $    38,090,000
                       M-5                 $    72,041,000
                       B                   $    61,690,000
                       V-M-1               $    19,316,000
                       V-M-2               $    13,797,000
                       V-M-3               $     8,968,000
                       V-M-4               $    24,145,000
                       V-M-5               $    15,177,000
                       V-B                 $    14,487,000
                       N-1                 $    31,700,000
                       N-2                 $     7,890,000

         INITIAL CERTIFICATION: The initial certification delivered by the
Custodian pursuant to Section 2.03(a) of the Indenture and in the form attached
thereto as Exhibit One thereto.

         INSURANCE ACCOUNT: The account created and maintained pursuant to
Section 11.02 of the Indenture. The Insurance Account shall be an Eligible
Account.

         INSURANCE AGREEMENT: The Insurance and Indemnity Agreement, dated as of
June 22, 2005, among the Indenture Trustee, the Seller, the Issuer, American
Home Mortgage Investment Corp., the HELOC Servicer, the HELOC Back-Up Servicer,
the Depositor and the Insurer, including any amendments and supplements thereto
in accordance with the terms thereof.

         INSURANCE POLICY: The note guaranty insurance policy (No. 05030037)
with respect to the Class VI-A Notes and all endorsements thereto, if any, dated
the Closing Date, issued by the Insurer for the benefit of the Holders of the
Class VI-A Notes.

         INSURANCE PROCEEDS: Proceeds paid by any insurer pursuant to any
insurance policy covering a Mortgage Loan which are required to be remitted to
the HELOC Servicer or the RMBS Servicer, as applicable, net of any component
thereof, released to the Mortgagor in accordance with the HELOC Servicer's or
the RMBS Servicer's normal servicing procedures, as applicable.

         INSURED PAYMENT: With respect to the Class VI-A Notes, (a) as of any
Payment Date, any Class VI-A Deficiency Amount and (b) any Class VI-A Preference
Amount.

         INSURER: Financial Guaranty Insurance Company, a corporation organized
and created under the laws of the State of New York, or any successor thereto.

         INSURER DEFAULT: The existence and continuance of any of the following:
(a) a failure by the Insurer to make a payment required under the Insurance
Policy in accordance with its terms; or (b)(i) the Insurer (A) files any
petition or commences any case or proceeding under any provision or chapter of
the Bankruptcy Code or any other similar federal or state law relating to
insolvency, bankruptcy, rehabilitation, liquidation or reorganization, (B) makes
a general assignment for the benefit of its creditors, or (C) has an order for
relief entered against it under the Bankruptcy Code or any other similar federal
or state law relating to insolvency, bankruptcy, rehabilitation, liquidation or
reorganization which is final and nonappealable; or (ii) a court of competent
jurisdiction, the New York Department of Insurance or other competent regulatory
authority enters a final and nonappealable order, judgment or decree (A)
appointing a custodian, trustee, agent or receiver for the Insurer or for all or
any material portion of its property or (B) authorizing the taking of possession
by a custodian, trustee, agent or receiver of the Insurer (or the taking of
possession of all or any material portion of the property of the Insurer).

         INTEREST COLLECTIONS: For each Payment Date, an amount equal to the
amount received by the Indenture Trustee and available in the Payment Account on
that Payment Date in respect of the Group VI Loans, and consist of interest
collected during the related Due Period on the HELOCs and allocated to interest
in accordance with the terms of the related Credit Line Agreements, together
with the interest portion of any Repurchase Price and substitution adjustment
amount paid during the related Due Period, any Net Recoveries on HELOCs that
were previously Charged-Off HELOCs and interest earned on amounts on deposit in
the Group VI Pre-Funding Account, and amounts transferred from the Group VI
Interest Coverage Account, net of fees and other amounts reimbursable to the
Owner Trustee, Indenture Trustee, Securities Administrator, HELOC Servicer and
HELOC Back-Up Servicer as provided in the Basic Documents and allocable to the
Group VI Loans, or, if such reimbursable amounts are not allocable to such
Mortgage Loans, then the Group VI's pro rata share of such amounts. For purposes
of this definition, "pro rata share" shall be a fraction, the numerator of which
is equal to the aggregate of the Stated Principal Balance of the Group VI Loans
for such Payment Date and the denominator of which is equal to the Pool Balance
for such Payment Date.

         INTEREST COVERAGE ACCOUNT: Each of the Group I Interest Coverage
Account, Group II-C Interest Coverage Account, Group II-NC Interest Coverage
Account, Group III Interest Coverage Account, Group IV Interest Coverage
Account, Group V Interest Coverage Account and Group VI Interest Coverage
Account.

         INTEREST COVERAGE AMOUNT: The Group I Interest Coverage Amount, Group
II-C Interest Coverage Amount, Group II-NC Interest Coverage Amount, Group III
Interest Coverage Amount, Group IV Interest Coverage Amount, Group V Interest
Coverage Amount and Group VI Interest Coverage Amount is $844,316.26,
$728,655.66, $879,309.45, $2,414,404.44, $1,073,128.38, $1,845,589.96 and
$646,930.04, respectively.

         INTEREST DETERMINATION DATE: With respect each Class of LIBOR Notes,
other than the Class II-A-1 Notes, Class II-A-2 Notes and the Class II-A-3
Components and (i) the first Accrual Period, the second LIBOR Business Day
preceding the Closing Date, and (ii) with respect to each Accrual Period
thereafter, the second LIBOR Business Day preceding the related Payment Date on
which such Accrual Period commences. With respect to the Class II-A-1 Notes,
Class II-A-2 Notes and the Class II-A-3 Components and (i) the first Accrual
Period, the second LIBOR Business Day preceding the Closing Date and (ii) each
Accrual Period thereafter, the second LIBOR Business Day preceding the payment
date occurring during the month of such Accrual Period.

         INTEREST RATE ADJUSTMENT DATE: With respect to each Mortgage Loan, the
date or dates on which the Mortgage Rate is adjusted in accordance with the
related Mortgage Note.

         INTERESTED PERSON: As of any date of determination, the Depositor, the
HELOC Back-Up Servicer, the HELOC Servicer, the RMBS Master Servicer, the RMBS
Servicer, the Indenture Trustee, American Home Mortgage Investment Corp., any
Mortgagor, or any Person actually known to a Responsible Officer of the Trustee
to be an Affiliate of any of them.

         INVESTOR CHARGE-OFF AMOUNT: For any Payment Date, the Floating
Allocation Percentage of Charge-Off Amounts incurred during the related Due
Period.

         INVESTOR INTEREST COLLECTIONS: For any Payment Date, the Floating
Allocation Percentage of Interest Collections for the related Due Period.

         INVESTED AMOUNT: For any Payment Date, the Invested Amount on the
Closing Date reduced by (i) the aggregate amount of Investor Principal
Distribution Amounts (before taking into account any Overcollateralization
Reduction Amount) up to and including the related Payment Date and (ii) the
aggregate of Investor Charge-Off Amounts up to and including such Payment Date.
The Invested Amount on the Closing Date is $240,241,964.64.

         INVESTOR PRINCIPAL DISTRIBUTION AMOUNT: On every Payment Date from the
first Payment Date through and including the Payment Date in June 2015, unless a
Rapid Amortization Event has occurred is equal to the excess, if any, of all
Principal Collections received during the related Due Period over the amount of
all Additional Balances resulting from Draws made pursuant to the related HELOC
Mortgage Loan during the related Due Period; and on every Payment Date after the
Payment Date in June 2015 or if a Rapid Amortization Event has previously
occurred, is equal to all Principal Collections received during the related Due
Period. During the Managed Amortization Period, such amount will be reduced by
the Overcollateralization Reduction Amount.

         INVESTMENT COMPANY ACT: The Investment Company Act of 1940, as amended,
and any amendments thereto.

         IRS: The Internal Revenue Service.

         ISSUER: American Home Mortgage Investment Trust 2005-2, a Delaware
statutory trust, or its successor in interest.

         ISSUER REQUEST: A written order or request signed in the name of the
Issuer by any one of its Authorized Officers and approved in writing by the Note
Insurer, so long as no Note Insurer Default exists, and delivered to the
Indenture Trustee.

         LIBOR BUSINESS DAY: A day on which banks are open for dealing in
foreign currency and exchange in London and New York City.

         LIBOR NOTE: Any Class I-A, Class II-A, V-A-2, , Class VI-A, Class M,
Class B, Class V-M or Class V-B Note, or any Class III-A Note or Class IV-A Note
after the related Note Rate Change Date.

         LIEN: Any mortgage, deed of trust, pledge, conveyance, hypothecation,
assignment, participation, deposit arrangement, encumbrance, lien (statutory or
other), preference, priority right or interest or other security agreement or
preferential arrangement of any kind or nature whatsoever, including, without
limitation, any conditional sale or other title retention agreement, any
financing lease having substantially the same economic effect as any of the
foregoing and the filing of any financing statement under the UCC (other than
any such financing statement filed for informational purposes only) or
comparable law of any jurisdiction to evidence any of the foregoing; PROVIDED,
HOWEVER, that any assignment pursuant to Section 6.02 of the HELOC Servicing
Agreement, HELOC Back-Up Servicing Agreement, RMBS Servicing Agreement or RMBS
Master Servicing Agreement, as applicable, shall not be deemed to constitute a
Lien.

         LIFETIME RATE CAP: With respect to each Mortgage Loan with respect to
which the related Mortgage Note provides for a lifetime rate cap, the maximum
Mortgage Rate permitted over the life of such Mortgage Loan under the terms of
such Mortgage Note, as set forth in the Mortgage Loan Schedule.

         LIQUIDATED HELOC: Any HELOC Mortgage Loan that has become a Liquidated
Mortgage Loan.

         LIQUIDATED MORTGAGE LOAN: With respect to any Payment Date, any
Mortgage Loan in respect of which the HELOC Servicer or RMBS Servicer, as
applicable, has determined, in accordance with the servicing procedures
specified in the HELOC Servicing Agreement or RMBS Servicing Agreement, as
applicable, as of the end of the related Due Period that substantially all
Liquidation Proceeds, and/or Recoveries with respect to a Charged-Off HELOC
Mortgage Loan, which it reasonably expects to recover with respect to the
disposition of the related Mortgaged Property or REO Property have been
recovered.

         LIQUIDATION EXPENSES: Out-of-pocket expenses (exclusive of overhead)
which are incurred by or on behalf of the HELOC Servicer or RMBS Servicer, as
applicable, in connection with the liquidation of any Mortgage Loan and not
recovered under any insurance policy, such expenses including, without
limitation, legal fees and expenses, any unreimbursed amount expended respecting
the related Mortgage Loan and any related and unreimbursed expenditures for real
estate property taxes or for property restoration, preservation or insurance
against casualty loss or damage.

         LIQUIDATION PROCEEDS: Proceeds (including Insurance Proceeds) received
in connection with the liquidation of any Mortgage Loan or HELOC Mortgage Loan
or related REO Property, whether through trustee's sale, foreclosure sale or
otherwise.

         LOAN GROUP: Any of Loan Group I, Loan Group II-C, Loan Group II-NC,
Loan Group III, Loan Group IV, Loan Group V or Loan Group VI.

         LOAN GROUP I: The Group I Loans.

         LOAN GROUP II-C: The Group II-C Loans.

         LOAN GROUP II-NC: The Group II-NC Loans.

         LOAN GROUP III: The Group III Loans.

         LOAN GROUP IV: The Group IV Loans.

         LOAN GROUP V: The Group V Loans.

         LOAN GROUP VI: The Group VI Loans.

         LOAN-TO-VALUE RATIO: With respect to any Mortgage Loan, as of any date
of determination, a fraction expressed as a percentage, the numerator of which
is the then current principal amount of the Mortgage Loan, and the denominator
of which is the Appraised Value of the related Mortgaged Property.

         LOAN YEAR: With respect to any Mortgage Loan, the one-year period
commencing on the day succeeding the origination of such Mortgage Loan and
ending on the anniversary date of such Mortgage Loan, and each annual period
thereafter.

         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).

         MAJORITY CERTIFICATEHOLDER: A Holder of a 50.01% or greater Certificate
Percentage Interest of the Certificates.

         MANAGED AMORTIZATION PERIOD: The period from the Cut-off Date to the
earlier of (a) the Payment Date in June 2015 and (b) the occurrence of a Rapid
Amortization Event.

         MARGIN: With respect to each HELOC Mortgage Loan (other than any HELOC
Mortgage Loan with a Fixed Teaser Rate in effect), the spread over the
applicable Index, as specified in the related Mortgage Note.

         MAXIMUM COMPONENT INTEREST RATE: With respect to any Payment Date and
Component II-A-3-C and Component II-A-3-NC, 11.00% per annum.

         MAXIMUM NOTE INTEREST RATE: With respect to any Payment Date and each
class of the Class I-A, Class II-A-1, Class II-A-2 and Class M Notes, and with
respect to the Class III-A Notes and Class IV-A Notes and any Payment Date after
the related Note Rate Change Date, 11.00% per annum. With respect to Payment
Date and each class of the Class V-A-2, Class V-M Notes and Class V-B Notes,
10.00% per annum.

         MAXIMUM MORTGAGE RATE: With respect to each ARM Loan and each HELOC
Mortgage Loan, the maximum Mortgage Rate.

         MAXIMUM RATE: With respect to Payment Date and the Class VI-A Notes,
(a) the weighted average of the Maximum Mortgage Rates of the HELOC Mortgage
Loans, weighted on the basis of the related Stated Principal Balance of each
HELOC Mortgage Loan as of the end of the related Due Period, minus (i) the HELOC
Servicing Fee Rate and (ii) the premium due to the Insurer under the Policy
expressed in dollars divided by aggregate Stated Principal Balance of the HELOC
Mortgage Loans as of such Payment Date times (b) a fraction equal to (x) the
number of days in the related Accrual Period over (y) 30.

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

         MERS(R) SYSTEM: The system of recording transfers of Mortgages
electronically maintained by MERS.

         MIN: The Mortgage Identification Number for Mortgage Loans registered
with MERS on the MERS(R) System.

         MINIMUM MORTGAGE RATE: With respect to each ARM Loan and each HELOC
Mortgage Loan, the minimum Mortgage Rate.

         MINIMUM MONTHLY PAYMENT: The minimum amount required to be paid by the
mortgagor pursuant to the terms of a Group VI Mortgage Note.

         MINIMUM TRANSFEROR INTEREST:  Zero.

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

         MONTHLY ADVANCE: As to any Mortgage Loan, other than a HELOC Mortgage
Loan, any advance made by the RMBS Master Servicer pursuant to Section 4.04 of
the RMBS Master Servicing Agreement or by the RMBS Servicer in respect of
delinquent Monthly Payments of principal and interest pursuant to the RMBS
Servicing Agreement.

         MONTHLY PAYMENT: With respect to any Mortgage Loan (including any REO
Property) that is not a HELOC Mortgage Loan and any Due Date, the payment of
principal and interest due thereon in accordance with the amortization schedule
at the time applicable thereto (after adjustment, if any, for partial Principal
Prepayments and for Deficient Valuations occurring prior to such Due Date but
before any adjustment to such amortization schedule by reason of any bankruptcy,
other than a Deficient Valuation, or similar proceeding or any moratorium or
similar waiver or grace period, and after any adjustment required by the Relief
Act). With respect to any HELOC Mortgage Loan, the scheduled monthly payment of
principal and/or interest required to be made by a Mortgagor on such HELOC
Mortgage Loan.

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

         MORTGAGE: The mortgage, deed of trust or other instrument creating a
first, second or third lien on an estate in fee simple interest in real property
securing a Mortgage Loan.

         MORTGAGE FILE: The file containing the Related Documents pertaining to
a particular Mortgage Loan and any additional documents required to be added to
the Mortgage File pursuant to the Mortgage Loan Purchase Agreement or the HELOC
Servicing Agreement or RMBS Servicing Agreement, as applicable.

         MORTGAGE LOANS: The Mortgage Loans and HELOC Mortgage Loans that will
be transferred and assigned to the Trust pursuant to Section 2.03(a) of the
Indenture, each Mortgage Loan so held being identified in the Mortgage Loan
Schedule. The Mortgage Loans have been divided into seven groups, Loan Group I,
Loan Group II-C, Loan Group II-NC, Loan Group III, Loan Group IV, Loan Group V
and Loan Group VI.

         MORTGAGE LOAN PURCHASE AGREEMENT: The Mortgage Loan Purchase Agreement,
dated as of the Closing Date, between the Seller, as seller, and the Purchaser,
as purchaser, relating to the sale, transfer and assignment of the Mortgage
Loans.

         MORTGAGE LOAN SCHEDULE: With respect to any date, the schedule of
Mortgage Loans held by the Issuer on such date. The schedule of Mortgage Loans
as of the Cut-off Date is the schedule set forth in Exhibit B of the Indenture,
which schedule sets forth as to each Mortgage Loan:

         (i)               the loan number and name of the Mortgagor;

         (ii)              the street address, city, state and zip code of the
                           Mortgaged Property;

         (iii)             the original Mortgage Rate;

         (iv)              the maturity date;

         (v)               the original principal balance;

         (vi)              the first Payment Date;

         (vii)             the type of Mortgaged Property;

         (viii)            the Monthly Payment in effect as of the Cut-off Date;

         (ix)              the Cut-off Date Principal Balance and with respect
                           to each HELOC Mortgage Loan; separately indicating
                           any HELOC Balance;

         (x)               the Index and the Gross Margin, if applicable;

         (xi)              the Adjustment Date frequency and Payment Date
                           frequency, if applicable;

         (xii)             the occupancy status;

         (xiii)            the purpose of the Mortgage Loan;

         (xiv)             the Appraised Value of the Mortgaged Property;

         (xv)              the original term to maturity;

         (xvi)             the paid-through date of the Mortgage Loan;

         (xvii)            the Loan-to-Value Ratio;

         (xviii)           whether or not the Mortgage Loan was underwritten
                           pursuant to a limited documentation program;

         (xix)             the Loan Group;

         (xx)              whether the Mortgage Loan has a fixed interest rate
                           or an adjustable interest rate;

         (xxi)             with respect to each HELOC Mortgage Loan, the account
                           number;

         (xxii)            with respect to each HELOC Mortgage Loan, the Credit
                           Limit;

         (xxiii)           with respect to each HELOC Mortgage Loan, the CLTV as
                           of the date of origination of the related HELOC
                           Mortgage Loan;

         (xxiv)            with respect to each HELOC Mortgage Loan, the
                           Mortgage Rate as of the Cut-off Date, separately
                           indicating the Mortgage Rates applicable to any HELOC
                           Balance;

         (xxv)             with respect to each HELOC Mortgage Loan, the
                           debt-to-income ratio;

         (xxvi)            with respect to each HELOC Mortgage Loan, the FICO;

         (xxvii)           with respect to each HELOC Mortgage Loan whether the
                           related Mortgage Rate was supposed to reset in the
                           first Due Period but did not; and

         (xxviii)          a code indicating if the Mortgage Loan is a Negative
                           Amortization Mortgage Loan.

         The Mortgage Loan Schedule shall also set forth the total of the
amounts described under (ix) above for all of the Mortgage Loans.

         MORTGAGE NOTE: The note or other evidence of the indebtedness of a
Mortgagor under a Mortgage Loan that is not a HELOC Mortgage Loan. With respect
to a HELOC Mortgage Loan, the related Credit Line Agreement executed by the
related Mortgager and any amendment or modification thereof.

         MORTGAGE RATE: With respect to any Mortgage Loan that is not a HELOC
Mortgage Loan, the annual rate at which interest accrues on such Mortgage Loan.
With respect to any HELOC Mortgage Loan as of any day, the variable interest
rate applicable under the related Mortgage Note, provided, that if the Fixed
Teaser Rate is in effect with respect to a HELOC Mortgage Loan or any portion
thereof, the Mortgage Rate for such HELOC Mortgage Loan or portion thereof shall
be the resulting fixed interest rate.

         MORTGAGED PROPERTY: The underlying property, including real property
and improvements thereon, securing a Mortgage Loan.

         MORTGAGOR: The obligor or obligors under a Mortgage Note.

         NEGATIVE AMORTIZATION AMOUNT: With respect to any Payment Date, the
aggregate amount of Negative Amortization with respect to the Group I Loans for
the related Due Period.

         NEGATIVE AMORTIZATION: With respect to each Negative Amortization
Mortgage Loan, that portion of interest accrued at the Mortgage Rate in any
month which exceeds the Monthly Payment on the related Mortgage Loan for such
month and which, pursuant to the terms of the Mortgage Note, is added to the
principal balance of the Mortgage Loan.

         NEGATIVE AMORTIZATION MORTGAGE LOAN: Each Mortgage Loan that is
identified on the Mortgage Loan Schedule as a Mortgage Loan that may be subject
to Negative Amortization.

         NET LIQUIDATION PROCEEDS: With respect to any Liquidated Mortgage Loan
or Liquidated HELOC, Liquidation Proceeds and Subsequent Recoveries net of
unreimbursed Servicing Advances by the HELOC Servicer or RMBS Servicer, as
applicable, Monthly Advances and Liquidation Expenses.

         NET MONTHLY EXCESS CASHFLOW: With respect to Loan Group I, Loan Group
II-C, Loan Group II-NC, Loan Group III and Loan Group IV, as determined in the
aggregate for any Payment Date, the sum of (1) the excess of (x) the Group I,
Group II-C, Group II-NC, Group III and Group IV Available Funds for such Payment
Date over (y) the sum for such Payment Date of (A) the aggregate amount of
Accrued Note Interest or Accrued Component Interest for the Class I-A, Class
II-A-1, Class II-A-2, Class III-A, Class IV-A and Class M Notes and the Class
II-A-3 Components and (B) the Principal Remittance Amount used to make payments
in respect of principal to these Notes or Class II-A-3 Components, and (2)
amounts payable from the Net Monthly Excess Cashflow for the Group V Loans as
provided in Section 3.06(e) of the Indenture. With respect to Loan Group V, for
any Payment Date and, the sum of (1) the excess of (x) the Group V Available
Funds and the Class V-A-4-D Insured Amount, if any, for such Payment Date over
(y) the sum for such Payment Date of (A) the aggregate amount of Accrued Note
Interest for the Class V-A, Class V-M and Class V-B Notes and (B) the Principal
Remittance Amount used to make payments in respect of principal to these Notes
and (2) amounts payable from the Net Monthly Excess Cashflow for the Group I,
Group II-C, Group II-NC, Group III and Group IV Loans as provided in Section
3.05(e).

         NET MORTGAGE RATE: For any Mortgage Loan or HELOC Mortgage Loan, the
then applicable Mortgage Rate thereon minus the RMBS Servicing Fee Rate, HELOC
Back-Up Servicer Fee Rate, HELOC Servicing Fee Rate, as applicable, and, in the
case of a Group VI Loan, less the premium due to the Insurer under the Insurance
Policy, in each case expressed as a per annum rate.

         NET RECOVERIES: With respect to any Charged-Off HELOC Mortgage Loan,
Recoveries net of unreimbursed HELOC Back-Up Servicing Fees and HELOC Servicing
Fees with respect thereto.

         NET WAC CAP: The weighted average of the Net Mortgage Rates of the
HELOC Mortgage Loans included in the trust as of the end of the prior Due
Period, weighted on the basis of the Stated Principal Balances thereof as of the
end of the prior Due Period, minus (i) the HELOC Servicing Fee Rate and the
HELOC Back-Up Servicing Fee Rate and (ii) the premium due to the Insurer under
the Policy, expressed in dollars, divided by the current Stated Principal
Balance of the HELOC Mortgage Loans.

         NET WAC SHORTFALL: With respect to the Class III-A Notes and Class IV-A
Notes, on or prior to the related Note Rate Change Date, and with respect to the
Class V-A-1, Class V-A-3 and Class V-A-4 Notes on any Payment Date, as
determined separately for each such Class of Notes, the excess, if any, of (x)
the related Accrued Note Interest thereon for such Payment Date calculated
pursuant to clause (i)(a) of the related definition of Note Interest Rate over
(y) Accrued Note Interest thereon for such Payment Date calculated at the
related Available Funds Rate.

         NET WAC SHORTFALL CARRY-FORWARD AMOUNT: With respect to the Class III-A
Notes and Class IV-A Notes, on or prior to the related Note Rate Change Date,
and with respect to the Class V-A-1, Class V-A-3 and Class V-A-4 Notes on any
Payment Date, as determined separately for each such Class of Notes, an amount
equal to the aggregate amount of Net WAC Shortfall for such Notes on such
Payment Date, plus any unpaid Net WAC Shortfall for such Class of Notes from
prior Payment Dates, plus interest thereon at the related Note Interest Rate for
such Payment Date for such Class for the related Accrual Period, to the extent
previously unreimbursed by Net Monthly Excess Cashflow.

         NET WORTH: With respect to any Person at any date, the excess of total
assets over total liabilities of such Person, and its consolidated subsidiaries,
on such date, each to be determined in accordance with generally accepted
accounting principles (GAAP) as in effect in the United States from time to
time.

         NON-OFFERED NOTES: The Class B, Class V-B, Class V-M-5 and Class N
Notes.

         NONRECOVERABLE ADVANCE: Any Monthly Advance or any Servicing Advance
(i) which was previously made or is proposed to be made by the HELOC Servicer,
RMBS Servicer or RMBS Master Servicer, as applicable; and (ii) which, in the
good faith judgment of the HELOC Servicer, RMBS Servicer or RMBS Master
Servicer, will not or, in the case of a proposed advance, would not, be
ultimately recoverable by the HELOC Servicer, RMBS Servicer or RMBS Master
Servicer, as applicable, from Liquidation Proceeds, Recoveries or future
payments on any Mortgage Loan. The Indenture Trustee may conclusively rely on
any determination of nonrecoverability made by the HELOC Servicer, RMBS Servicer
or RMBS Master Servicer, as applicable.

         NOTE: A Class A, Class M, Class B, Class V-M, Class V-B or Class N
Note.

         NOTE INSURANCE POLICY: The certificate guaranty insurance policy issued
by the Note Insurer for the benefit of the Class V-A-4-D Noteholders.

         NOTE INSURANCE POLICY PREMIUM AMOUNT: The amount of premium due to the
Note Insurer in accordance with the Note Insurance Policy.

         NOTE INSURANCE POLICY PREMIUM RATE: With respect to any Payment Date,
the rate per annum at which the Note Insurance Policy Premium Amount for the
Note Insurance Policy accrues, as specified in a letter agreement, dated as of
June 20, 2005, between the Note Insurer and American Home Mortgage Investment
Corp.

         NOTE INSURER: Ambac Assurance Corporation, a Wisconsin-domiciled stock
insurance corporation, any successor thereto.

         NOTE INSURER DEFAULT: The existence and continuance of any of the
following: (a) a failure by the Note Insurer to make a payment required under
the Note Insurance Policy in accordance with its terms; or (b)(i) the Note
Insurer (A) files any petition or commences any case or proceeding under any
provision or chapter of the Bankruptcy Code or any other similar federal or
state law relating to insolvency, bankruptcy, rehabilitation, liquidation or
reorganization, (B) makes a general assignment for the benefit of its creditors,
or (C) has an order for relief entered against it under the Bankruptcy Code or
any other similar federal or state law relating to insolvency, bankruptcy,
rehabilitation, liquidation or reorganization which is final and nonappealable;
or (ii) a court of competent jurisdiction, the New York or Wisconsin Department
of Insurance or other competent regulatory authority enters a final and
nonappealable order, judgment or decree (A) appointing a custodian, trustee,
agent or receiver for the Note Insurer or for all or any material portion of its
property or (B) authorizing the taking of possession by a custodian, trustee,
agent or receiver of the Note Insurer (or the taking of possession of all or any
material portion of the property of the Note Insurer).

         NOTE INTEREST RATE: With respect to each Payment Date and the Class
I-A, Class II-A-1, Class II-A-2, Class V-A-2, Class M, Class B, Class V-M or
Class V-B Notes, a floating rate equal to the least of (i) One-Month LIBOR plus
the related Note Margin, (ii) the related Maximum Note Interest Rate and (iii)
the related Available Funds Rate with respect to such Payment Date. With respect
to each Payment Date and the Class III-A, Class IV-A-1, Class IV-A-2 and Class
IV-A-3 Notes, (i) prior to the related Note Rate Change Date, the lesser of (a)
5.6150%, 5.6600%, 5.6290% and 5.6290% per annum, respectively and (b) the
related Available Funds Rate and (ii) on or after the related Note Rate Change
Date, the least of (a) Six-Month LIBOR plus the related Note Margin, (b) the
related Maximum Note Interest Rate and (c) the related Available Funds Rate.
With respect to each Payment Date prior to the Step-Up Date and the Class V-A-1,
Class V-A-3, Class V-A-4-A, Class V-A-4-B, Class V-A-4-C and Class V-A-4-D
Notes, the lesser of (i) 5.0640%, 5.0770%, 5.3830%, 5.7550%, 5.4080% and 5.3280%
per annum, respectively, and (ii) the related Available Funds Rate. With respect
to each Payment Date on or after the Step-Up Date and the Class V-A-1, Class
V-A-3, Class V-A-4-A, Class V-A-4-B, Class V-A-4-C and Class V-A-4-D Notes, the
lesser of (i) 5.5640%, 5.5770%, 5.8830%, 6.2550%, 5.9080% and 5.8280% per annum,
respectively, and (ii) the related Available Funds Rate. With respect to each
Payment Date and the Class VI-A Notes, a rate equal to the least of (x)
One-Month LIBOR plus the related Note Margin, (y) the Net WAC Cap and (z) the
Maximum Rate. With respect to each Payment Date and the Class N-1 Notes and
Class N-2 Notes, 5.250% and 5.500%, respectively.

         NOTE MARGIN: The Class I-A, Class II-A-1, Class II-A-2, Class V-A-2,
Class M, Class V-M and Class V-B Notes shall have the following Note Margins:

<TABLE>
<CAPTION>
                           NOTE MARGIN FOR ANY PAYMENT DATE PRIOR   NOTE MARGIN FOR ANY PAYMENT DATE
           CLASS                     TO THE STEP-UP DATE              ON AND AFTER THE STEP-UP DATE
           -------------   --------------------------------------   --------------------------------
<S>                                        <C>                                   <C>
           I-A-1........                   0.300%                                0.600%
           I-A-2........                   0.350%                                0.700%
           I-A-3........                   0.380%                                0.760%
           II-A-1.......                   1.570%                                3.140%
           II-A-2.......                   1.570%                                3.140%
           V-A-2........                   0.150%                                0.300%
           M-1..........                   0.520%                                0.780%
           M-2..........                   0.570%                                0.855%
           M-3..........                   0.600%                                0.900%
           M-4..........                   0.750%                                1.125%
           M-5..........                   1.200%                                1.800%
           V-M-1........                   0.520%                                0.780%
           V-M-2........                   0.570%                                0.855%
           V-M-3........                   0.600%                                0.900%
           V-M-4........                   0.750%                                1.125%
           V-M-5........                   1.200%                                1.800%
           V-B..........                   2.350%                                3.525%
</TABLE>

With respect to each of the Class III-A Notes and Class IV-A Notes after the
applicable Note Rate Change Date, 1.500%.

         NOTE OWNER: The Beneficial Owner of a Note.

         NOTE PRINCIPAL BALANCE: With respect to any Note, other than the Class
II-A-3 Notes, as of any date of determination, the initial Note Principal
Balance as stated on the face thereof, minus all amounts distributed in respect
of principal with respect to such Note and (a) plus, in the case of the Class
I-A-2, Class I-A-3, Class IV-A-3, Class V-A-4-B, Class M, Class B, Class V-M and
Class V-B Notes, any Subsequent Recoveries allocated thereto and (b) minus, in
the case of the Class I-A-2, Class I-A-3, Class IV-A-3, Class V-A-4-B, Class M,
Class B, Class V-M and Class V-B Notes, the aggregate amount of any reductions
in the Note Principal Balance thereof deemed to have occurred in connection with
allocations of Realized Losses on all prior Payment Dates in accordance with
Section 3.38 of the Indenture. With respect to the Class II-A-3 Notes, the sum
of the Component Principal Balances of the Class II-A-3 Components.

         NOTE RATE CHANGE DATE: With respect to the Class III-A Notes and Class
IV-A Notes, the Payment Date in July 2010.

         NOTE REGISTER: The register maintained by the Note Registrar in which
the Note Registrar shall provide for the registration of Notes and of transfers
and exchanges of Notes.

         NOTE REGISTRAR: The Indenture Trustee, in its capacity as Note
Registrar, or any successor to the Indenture Trustee in such capacity.

         NOTEHOLDER OR HOLDER: The Person in whose name a Note is registered in
the Note Register, except that, any Note registered in the name of the
Depositor, the Issuer, American Home Mortgage Investment Corp., the Indenture
Trustee, the Securities Administrator, the Seller, HELOC Back-Up Servicer, HELOC
Servicer, RMBS Servicer or RMBS Master Servicer or any Affiliate of any of them
shall be deemed not to be a holder or holders, nor shall any so owned be
considered outstanding, for purposes of giving any request, demand,
authorization, direction, notice, consent or waiver under the Indenture or the
Trust Agreement; provided that, in determining whether the Securities
Administrator and the Indenture Trustee shall be protected in relying upon any
such request, demand, authorization, direction, notice, consent or waiver, only
Notes that a Responsible Officer of the Securities Administrator, the Indenture
Trustee or the Owner Trustee actually knows to be so owned shall be so
disregarded. Owners of Notes that have been pledged in good faith may be
regarded as Holders if the pledgee establishes to the satisfaction of the
Securities Administrator, the Indenture Trustee or the Owner Trustee the
pledgee's right so to act with respect to such Notes and that the pledgee is not
the Issuer, any other obligor upon the Notes or any Affiliate of any of the
foregoing Persons. With respect to the Class V-A-4-D Notes, if payments are made
under the Note Insurance Policy, such Notes shall be deemed Outstanding until
the Note Insurer has been reimbursed with respect thereto and the Note Insurer
shall be deemed the Noteholder thereof to the extent of such unreimbursed
payment.

         OFFERED NOTES: The Class A, Class M, Class V-M-1, Class V-M-2, Class
V-M-3 and Class V-M-4 Notes.

         OFFICER'S CERTIFICATE: With respect to the HELOC Back-Up Servicer,
HELOC Servicer, RMBS Servicer or RMBS Master Servicer, as applicable, a
certificate signed by the President, Managing Director, a Director, a Vice
President or an Assistant Vice President, of the HELOC Back-Up Servicer, HELOC
Servicer, RMBS Servicer or RMBS Master Servicer, as applicable, and delivered to
the Indenture Trustee, RMBS Master Servicer or the HELOC Back-Up Servicer, as
applicable. With respect to the Issuer, a certificate signed by any Authorized
Officer of the Issuer, under the circumstances described in, and otherwise
complying with, the applicable requirements of Section 10.01 of the Indenture,
and delivered to the Securities Administrator. Unless otherwise specified, any
reference in the Indenture to an Officer's Certificate shall be to an Officer's
Certificate of any Authorized Officer of the Issuer.

         ONE-MONTH LIBOR: With respect to any Accrual Period, the rate
determined by the Securities Administrator on the related Interest Determination
Date on the basis of the London interbank offered rate for one-month United
States dollar deposits, as such rates appear on the Telerate Screen Page 3750,
as of 11:00 a.m. (London time) on such Interest Determination Date.

         In the event that on any Interest Determination Date, Telerate Screen
Page 3750 fails to indicate the London interbank offered rate for one-month
United States dollar deposits, then One-Month LIBOR for the related Accrual
Period will be established by the Securities Administrator as follows:

         (i) If on such Interest Determination Date two or more Reference Banks
provide such offered quotations, One-Month LIBOR for the related Accrual Period
shall be the arithmetic mean of such offered quotations (rounded upwards if
necessary to the nearest whole multiple of 1/16%).

         (ii) If on such Interest Determination Date fewer than two Reference
Banks provide such offered quotations, One-Month LIBOR for the related Accrual
Period shall be the higher of (i) One-Month LIBOR as determined on the previous
Interest Determination Date and (ii) the Reserve Interest Rate.

         (iii) If no such quotations can be obtained and no Reference Bank rate
is available, One-Month LIBOR will be the One-Month LIBOR rate applicable to the
preceding Accrual Period.

         The establishment of One-Month LIBOR on each Interest Determination
Date by the Securities Administrator and the Securities Administrator's
calculation of the applicable Note Interest Rate applicable for the related
Accrual Period shall (in the absence of manifest error) be final and binding.

         OPINION OF COUNSEL: A written opinion of counsel acceptable to the
Indenture Trustee, the Insurer, the RMBS Master Servicer, the Note Insurer or
HELOC Back-Up Servicer, as applicable, in its reasonable discretion which
counsel may be in-house counsel for the HELOC Back-Up Servicer, HELOC Servicer,
RMBS Servicer, the Note Insurer or RMBS Master Servicer, as applicable, if
acceptable to the Indenture Trustee, the RMBS Master Servicer, the HELOC Back-Up
Servicer, the Insurer, the Note Insurer and the Rating Agencies or counsel for
the Depositor, as the case may be.

         ORIGINAL PRE-FUNDED AMOUNT: The Group I, Group II-C, Group II-NC, Group
III, Group IV, Group V or Group VI Original Pre-Funded Amount, as applicable.

         ORIGINAL VALUE: Except in the case of a refinanced Mortgage Loan, the
lesser of the Appraised Value or sales price of Mortgaged Property at the time a
Mortgage Loan is closed, and for a refinanced Mortgage Loan, the Original Value
is the value of such property set forth in an appraisal acceptable to the HELOC
Back-Up Servicer, HELOC Servicer, RMBS Servicer or RMBS Master Servicer, as
applicable.

         OTHER BASIS RISK AMOUNT: With respect to any Payment Date, an amount
equal to the sum of (i) the aggregate Basis Risk Shortfall Carry-Forward Amount
or Net WAC Shortfall Carry-Forward Amount, as applicable, with respect to the
Class I-A, Class III-A, Class IV-A, Class VI-A, Class M, Class B, Class V-M or
Class V-B Notes for such Payment Date and (ii) the aggregate Excess Basis Risk
Shortfall Carry-Forward Amount with respect to the Class V-A-2 Notes and Class
II-A Notes for such Payment Date.

         OUTSTANDING: With respect to the Notes, as of the date of
determination, all Notes theretofore executed, authenticated and delivered under
this Indenture except:

         (i) Notes theretofore canceled by the Note Registrar or delivered to
the Indenture Trustee for cancellation; and

         (ii) Notes in exchange for or in lieu of which other Notes have been
executed, authenticated and delivered pursuant to the Indenture unless proof
satisfactory to the Indenture Trustee is presented that any such Notes are held
by a holder in due course.

         OUTSTANDING MORTGAGE LOAN: As to any Due Date, a Mortgage Loan
(including an REO Property but excluding a Charged-Off HELOC Mortgage Loan)
which was not the subject of a Principal Prepayment in Full, Cash Liquidation or
REO Disposition and which was not purchased, deleted or substituted for prior to
such Due Date pursuant to the HELOC Servicing Agreement, RMBS Servicing
Agreement or Mortgage Loan Purchase Agreement, as applicable.

         OVERCOLLATERALIZATION INCREASE AMOUNT: With respect to the Group I,
Group II-C, Group II-NC, Group III and Group IV Loans, with respect to any
Payment Date, the lesser of (i) the related Net Monthly Excess Cashflow for such
Payment Date after payments to the Note Insurer in as provided in Section
3.05(e) of the Indenture and (ii) the excess, if any, of (a) the related
Overcollateralization Target Amount over (b) the related Overcollateralized
Amount on such Payment Date (after taking into account payments to the related
Notes of the related Basic Principal Distribution Amount on such Payment Date).
With respect to the Group V Loans, with respect to any Payment Date, the lesser
of (i) the related Net Monthly Excess Cashflow for such Payment Date after
payments to the Note Insurer in as provided in Section 3.06(e) of the Indenture
and (ii) the excess, if any, of (a) the related Overcollateralization Target
Amount over (b) the related Overcollateralized Amount on such Payment Date
(after taking into account payments to the related Notes of the related Basic
Principal Distribution Amount on such Payment Date), and thereafter, the related
Net Monthly Excess Cashflow for such Payment Date.

         OVERCOLLATERALIZATION REDUCTION AMOUNT: With respect to Loan Group VI
and any Payment Date, the lesser of (x) the related Excess Overcollateralization
Amount for such Payment Date and (y) the Investor Principal Distribution Amount
for such Payment Date (before taking into account the related
Overcollateralization Reduction Amount).

         OVERCOLLATERALIZATION TARGET AMOUNT: With respect to Loan Group I, Loan
Group II-C, Loan Group II-NC, Loan Group III and Loan Group IV, 0.35% of the sum
of the Group I, Group II-C, Group II-NC, Group III, Group IV, Group V, Group VI
and Group VII Cut-off Date Balances plus the amount of any Additional Net
Negative Amortization Amount. With respect to Loan Group V, 0.35% of the Group V
Cut-off Date Balance. With respect to Loan Group VI, (1) prior to the related
Stepdown Date, an amount equal to the sum of (a) the Group VI Delinquent HELOC
Amount and (b) 3.65% of the Group VI Cut-off Date Balance and (2) on or after
the related Stepdown Date, an amount equal to the sum of (a) the Group VI
Delinquent HELOC Amount and (b) the greatest of (x) 7.30% of the Invested
Amount, (y) 0.50% of the Group VI Cut-off Date Balance, and (z) the aggregate
Stated Principal Balance of the three Group VI Loans with the greatest Stated
Principal Balance; provided, however, that if a related Trigger Event is in
effect for the Group VI Loans, then the Overcollateralization Target Amount for
the Group VI Loans will be the same as on the prior Payment Date.

         OVERCOLLATERALIZED AMOUNT: For any Payment Date and Loan Group I, Loan
Group II-C, Loan Group II-NC, Loan Group III and Loan Group IV, the amount, if
any, by which (i) the aggregate Stated Principal Balance of the related 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,
including Realized Losses on the mortgage loans incurred during the related
Prepayment Period) and the related Pre-Funded Amount, exceeds (ii) the sum of
the aggregate Note Principal Balance of the related Class I-A, Class II-A, Class
III-A, Class IV-A, Class M and Class B Notes as of such Payment Date (assuming
that 100% of the Principal Remittance Amount is applied as a principal payment
on these Notes on such Payment Date). For any Payment Date and Loan Group V, the
amount, if any, by which (i) the aggregate Stated Principal Balance of the
related 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, including Realized Losses on the mortgage loans incurred during the
related Prepayment Period) and the related Pre-Funded Amount, exceeds (ii) the
aggregate Note Principal Balance of the Class V-A, Class V-M and Class V-B Notes
as of such Payment Date (assuming that 100% of the Principal Remittance Amount
is applied as a principal payment on these Notes on such Payment Date). For any
Payment Date and Loan Group VI, the amount, if any, by which (i) the Invested
Amount exceeds (ii) the Note Principal Balance of the Class VI-A Notes as of
such Payment Date (after giving effect to all other distributions of principal
on these Notes on such Payment Date). The initial amount of
overcollateralization in the Group VI Loans is approximately 1.00% of the Group
VI Cut-off Date Balance.

         OWNER TRUST ESTATE: The corpus of the Issuer created by the Trust
Agreement which consists of items referred to in Section 3.01 of the Trust
Agreement.

         OWNER TRUSTEE: M&T Trust Company of Delaware and its successors and
assigns or any successor owner trustee appointed pursuant to the terms of the
Trust Agreement.

         OWNER TRUSTEE'S FEE: A fee of $2,500 per annum payable to the Owner
Trustee in advance on the Closing Date and a fee of $4,000 payable on each
anniversary thereof by American Home Mortgage Servicing, Inc.; provided,
however, that in the event of any removal or resignation of the Owner Trustee,
the Owner Trustee will promptly remit to American Home Mortgage Servicing, Inc.
the portion of the Owner Trustee Fee that would have been earned by the Owner
Trustee during the remainder of such year had it not been removed or resigned or
the Notes redeemed.

         PAYING AGENT: Any paying agent or co-paying agent appointed pursuant to
Section 3.03 of the Indenture, which initially shall be the Indenture Trustee.

         PAYMENT ACCOUNT: The account established by the Indenture Trustee
pursuant to Section 3.01 of the Indenture. The Payment Account shall be an
Eligible Account.

         PAYMENT DATE: The 25th day of each month, or if such day is not a
Business Day, then the next Business Day, commencing in July 2005.

         PERCENTAGE INTEREST: With respect to any Note, the percentage obtained
by dividing the Note Principal Balance of such Note by the aggregate Note
Principal Balances of all Notes of that Class. With respect to any Certificate,
the percentage as stated on the face thereof.

         PERIODIC RATE CAP: With respect to any ARM Loan, the maximum rate, if
any, by which the Mortgage Rate on such Mortgage Loan can adjust on any
Adjustment Date, as stated in the related Mortgage Note or Mortgage.

         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.

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

         PLAN ASSETS: Assets of a Plan within the meaning of Department of Labor
regulation 29 C.F.R. ss.
2510.3-101.

         POOL BALANCE: With respect to any date of determination, the aggregate
of the Stated Principal Balances of all Mortgage Loans as of such date.

         PREMIUM AMOUNT: The premium payable to the Insurer pursuant to the
Insurance Agreement.

         PRE-FUNDED AMOUNT: The amount on deposit in a Pre-Funding Account on
any Date of Determination.

         PRE-FUNDING ACCOUNT: The Group I, Group II-C, Group II-NC, Group III,
Group IV, Group V or Group VI Pre-Funding Account, as applicable.

         PREPAYMENT INTEREST SHORTFALL: As to any Payment Date and any Mortgage
Loan (other than a Mortgage Loan relating to an REO Property or a HELOC Mortgage
Loan) that was the subject of (a) a Principal Prepayment in Full during the
related Prepayment Period, an amount equal to the excess of interest accrued
during the related Prepayment Period at the Net Mortgage Rate on the Stated
Principal Balance of such Mortgage Loan over the sum of the amount of interest
paid by the Mortgagor for such Prepayment Period to the date of such Principal
Prepayment in Full or (b) a partial Principal Prepayment during the related
Prepayment Period, an amount equal to the interest at the Mortgage Rate (less
the RMBS Servicing Fee Rate) during the related Prepayment Period on the amount
of such partial Principal Prepayment.

         PREPAYMENT PERIOD: With respect to each Mortgage Loan and any Payment
Date, the calendar month immediately preceding the month in which such Payment
Date occurs.

         PRIMARY INSURANCE POLICY: Each primary policy of mortgage guaranty
insurance issued by a Qualified Insurer or any replacement policy therefor.

         PRINCIPAL COLLECTIONS: For each Payment Date, an amount equal to the
amount received by the Indenture Trustee and available in the Payment Account on
that Payment Date in respect of the Group VI Loans, and consist of amounts
collected during the related Due Period on the HELOC Mortgage Loans and
allocated to principal in accordance with the terms of the related Credit Line
Agreement together with the principal portion of any Purchase Price or any
Substitution Adjustment Amounts paid during the preceding Due Period and at the
end of the Funding Period, any excess amounts transferred from the Group VI
Pre-Funding Account, net of fees and other amounts reimbursable to the Owner
Trustee, Indenture Trustee, Securities Administrator, HELOC Servicer and HELOC
Back-Up Servicer as provided in the Basic Documents and allocable to the Group
VI Loans, or, if any such reimbursable amounts are not allocable to such
Mortgage Loans, then the Group VI's pro rata share of such amounts, to the
extent not paid or reimbursed from Interest Collections. For purposes of this
definition, "pro rata share" shall be a fraction, the numerator of which is
equal to the aggregate of the Stated Principal Balance of the Group VI Loans for
such Payment Date and the denominator of which is equal to the Pool Balance for
such Payment Date.

         PRINCIPAL DISTRIBUTION AMOUNT: For any Payment Date, as determined
separately for the Group I, Group II-C, Group II-NC, Group III and Group IV
Loans collectively and for the Group V Loans, the sum of (a) the related Basic
Principal Distribution Amount, and (b) the related Overcollateralization
Increase Amount. In addition, the Principal Distribution Amount shall be reduced
to the extent the Overcollateralized Amount for these Loan Groups exceeds the
related Overcollateralization Target Amount, by the amount of such excess.

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

         PRINCIPAL REMITTANCE AMOUNT: For any Payment Date and any Loan Group ,
other than Loan Group VI, or the Mortgage Loans, other than the HELOC Mortgage
Loans, in the aggregate, as applicable, the sum of

         1.       the principal portion of all scheduled monthly payments on the
                  related Mortgage Loans due on the related Due Date, to the
                  extent received or advanced;

         2.       the principal portion of all proceeds of the repurchase of a
                  Mortgage Loan in the related Loan Group (or, in the case of a
                  substitution, certain amounts representing a principal
                  adjustment) as required by the Mortgage Loan Purchase
                  Agreement during the preceding calendar month;

         3.       any amount remaining on deposit in the related Pre-Funding
                  Account at the end of the Funding Period;

         4.       the principal portion of all other unscheduled collections
                  received during the preceding calendar month in respect of the
                  related Mortgage Loans, including full and partial
                  prepayments, the proceeds of any repurchase of such Mortgage
                  Loans by the Seller or holder of the Trust Certificates,
                  Liquidation Proceeds and Insurance Proceeds, in each case to
                  the extent applied as recoveries of principal; and

         5.       with respect to the Group V Loans, any portion of any Class
                  V-A-4-D Insured Amount for such Payment Date representing a
                  Class V-A-4-D Insured Undercollateralization Amount allocated
                  to the Class V-A-4-D Notes.

In addition, with respect to the Group I Loans, the Principal Remittance Amount
shall be reduced (to not less than zero) by the Negative Amortization Amount on
the Group I Loans.

         PRINCIPAL PREPAYMENT IN FULL: Any Principal Prepayment made by a
Mortgagor of the entire principal balance of a Mortgage Loan.

         PROCEEDING: Any suit in equity, action at law or other judicial or
administrative proceeding.

         PROSPECTUS: The Prospectus Supplement, dated June 20, 2005, together
with the attached Prospectus, dated March 22, 2005.

         PROTECTED ACCOUNT: An account established and maintained for the
benefit of Noteholders by the RMBS Servicer with respect to the related Mortgage
Loans and with respect to REO Property pursuant to the RMBS Servicing Agreement.

         PURCHASE PRICE: The meaning specified in Section 2.2(a) of the Mortgage
Loan Purchase Agreement.

         PURCHASER: American Home Mortgage Securities LLC, a Delaware limited
liability company, and its successors and assigns.

         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, approved as an insurer
by the HELOC Servicer, RMBS Servicer or RMBS Master Servicer, as applicable, and
as a Fannie Mae-approved mortgage insurer.

         RAPID AMORTIZATION EVENT:  As defined in Section 3.08 in the Indenture.

         RAPID AMORTIZATION PERIOD: Begins on the earlier of Payment Date in
July 2015 or the occurrence of a Rapid Amortization Event.

         RATING AGENCY: Any nationally recognized statistical rating
organization, or its successor, that rated the Notes at the request of the
Depositor at the time of the initial issuance of the Notes. Initially, Standard
& Poor's and Moody's. If such organization or a successor is no longer in
existence, "Rating Agency" with respect to the Notes shall be such nationally
recognized statistical rating organization, or other comparable Person,
designated by (i) with respect to the Notes other than the Class VI-A Notes, the
Note Insurer so long as no Note Insurer Default exists or (ii) with respect to
the Class VI-A Notes, the Insurer so long as no Insurer Default exists, notice
of which designation shall be given to the Indenture Trustee, the HELOC Back-Up
Servicer and the RMBS Master Servicer. References herein to the highest short
term unsecured rating category of a Rating Agency shall mean A-1 or better in
the case of Standard & Poor's and P-1 or better in the case of Moody's and in
the case of any other Rating Agency shall mean such equivalent ratings.
References herein to the highest long-term rating category of a Rating Agency
shall mean "AAA" in the case of Standard & Poor's and "Aaa" in the case of
Moody's and in the case of any other Rating Agency, such equivalent rating.

         REALIZED LOSS: With respect to a Mortgage Loan, other than a HELOC
Mortgage Loan, and as reported by the RMBS Servicer to the RMBS Master Servicer,
is (i) a Deficient Valuation, or (ii) as to any Liquidated Mortgage Loan, the
unpaid principal balance thereof plus accrued and unpaid interest thereon at the
Mortgage Rate through the last day of the month of liquidation less the Net
Liquidation Proceeds with respect to such Mortgage Loan and the related
Mortgaged Property.

         RECORD DATE: For each class of Notes, other than the Class II-A, Class
III-A, Class IV-A, Class V-A-1, Class V-A-3 and Class V-A-4 Notes, and each
Payment Date, will be the close of business on the Business Day immediately
preceding such Payment Date; provided, however, if any such Note is no longer a
Book-Entry Note, the "Record Date" for such class of Notes shall be the close of
business on the last Business Day of the calendar month preceding such Payment
Date. For each class of the Class II-A, Class III-A, Class IV-A, Class V-A-1,
Class V-A-3 and Class V-A-4 Notes and each Payment Date, the close of business
on the last Business Day of the calendar month preceding such Payment Date.

         RECOVERIES: With respect to a Charged-Off HELOC Mortgage Loan, the
proceeds (including Released Mortgaged Property Proceeds but not including
amounts drawn under the Insurance Policy) received by the HELOC Servicer in
connection with such Charged-Off HELOC Mortgage Loan minus related Servicing
Advances.

         REFERENCE BANKS: Any leading banks selected by the Securities
Administrator and engaged in transactions in Eurodollar deposits in the
international Eurocurrency market (i) with an established place of business in
London, (ii) whose quotations appear on the Telerate Screen Page 3750 on the
Interest Determination Date in question, (iii) which have been designated as
such by the Securities Administrator after consultation with the Note Insurer
and the Insurer, and (iv) which are not Affiliates of the Depositor, the Seller,
the HELOC Back-Up Servicer, the HELOC Servicer, the RMBS Master Servicer or the
RMBS Servicer.

         REGISTERED HOLDER: The Person in whose name a Note is registered in the
Note Register on the applicable Record Date.

         RELATED DOCUMENTS: With respect to each Mortgage Loan, the documents
specified in Section 2.1(b) of the Mortgage Loan Purchase Agreement, and the
related Subsequent Mortgage Loan Purchase Agreement, and any documents required
to be added to such documents pursuant to the Mortgage Loan Purchase Agreement,
the Trust Agreement, Indenture, the HELOC Servicing Agreement or the RMBS
Servicing Agreement.

         RELEASED MORTGAGED PROPERTY PROCEEDS: As to any HELOC Mortgage Loan,
proceeds received by the HELOC Servicer in connection with (a) a taking of an
entire Mortgaged Property by exercise of the power of eminent domain or
condemnation or (b) any release of part of the Mortgaged Property from the lien
of the related Mortgage, whether by partial condemnation, sale or otherwise,
which are not released to the Mortgagor in accordance with (i) applicable law,
(ii) Accepted Servicing Practices and (iii) the HELOC Servicing Agreement.

         RELIEF ACT: The Servicemember's Civil Relief Act.

         RELIEF ACT SHORTFALL: As to any Payment Date and any Mortgage Loan
(other than a Mortgage Loan relating to an REO Property), any shortfalls
relating to the Relief Act or similar legislation or regulations.

         REMITTANCE REPORT: The report prepared by the HELOC Back-Up Servicer,
HELOC Servicer or RMBS Servicer, as applicable, pursuant to Section 4.01 of the
HELOC Servicing Agreement, HELOC Back-Up Servicing Agreement or RMBS Servicing
Agreement.

         REO ACQUISITION: The acquisition by the HELOC Servicer or RMBS
Servicer, as applicable, on behalf of the Issuer for the benefit of the
Noteholders and the Insurer of any REO Property pursuant to Section 3.13 of the
HELOC Servicing Agreement or RMBS Servicing Agreement.

         REO DISPOSITION: As to any REO Property, a determination by the HELOC
Servicer or RMBS Servicer, as applicable, that it has received substantially all
Insurance Proceeds, Liquidation Proceeds, REO Proceeds and other payments and
recoveries (including proceeds of a final sale) which the HELOC Servicer or RMBS
Servicer, as applicable, expects to be finally recoverable from the sale or
other disposition of the REO Property.

         REO IMPUTED INTEREST: As to any REO Property, for any period, an amount
equivalent to interest (at the Net Mortgage Rate that would have been applicable
to the related Mortgage Loan had it been Outstanding) on the unpaid principal
balance of the Mortgage Loan as of the date of acquisition thereof for such
period as such balance is reduced pursuant to Section 3.13 of the HELOC
Servicing Agreement or RMBS Servicing Agreement, as applicable, by any income
from the REO Property treated as a recovery of principal.

         REO PROCEEDS: Proceeds, net of expenses, received in respect of any REO
Property (including, without limitation, proceeds from the rental of the related
Mortgaged Property) which proceeds are required to be deposited into the related
Collection Account or Protected Account only upon the related REO Disposition.

         REO PROPERTY: A Mortgaged Property that is acquired by the Trust by
foreclosure or by deed in lieu of foreclosure.

         REPURCHASE PRICE: With respect to any Mortgage Loan required to be
repurchased by the Seller on any date pursuant to the Mortgage Loan Purchase
Agreement or the HELOC Servicing Agreement or purchased by the RMBS Servicer or
HELOC Servicer, as applicable, pursuant to the RMBS Servicing Agreement or the
HELOC Servicing Agreement, as applicable, an amount equal to the sum, without
duplication, of (i) 100% of the Stated Principal Balance thereof (without
reduction for any amounts charged off) and (ii) unpaid accrued interest at the
Mortgage Rate on the outstanding principal balance thereof from the Due Date to
which interest was last paid by the Mortgagor to the first day of the month
following the month of purchase plus (iii) the amount of unreimbursed Monthly
Advances or unreimbursed Servicing Advances made with respect to such Mortgage
Loan plus (iv) any other amounts owed to the RMBS Master Servicer, RMBS
Servicer, HELOC Servicer or HELOC Back-Up Servicer, as applicable, pursuant to
the RMBS Master Servicing Agreement or related Servicing Agreement and not
included in clause (iii) of this definition plus (v) any costs and damages
incurred by the trust in connection with any violation by such loan of any
predatory lending law.

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

         REQUIRED RESERVE FUND BALANCE: For any Payment Date will be an amount
equal to three months' interest on the Note Principal Balance of the Class N
Notes immediately preceding such Payment Date, calculated based on the Note
Interest Rate thereon and three Accrual Periods consisting of 30 days each.

         REQUIRED RESERVE FUND DEPOSIT: For any Payment Date will be equal to
the amount necessary to cause the amount on deposit in the Class N Reserve Fund
to equal to the Required Reserve Fund Balance for such Payment Date.

         RESERVE INTEREST RATE: With respect to any Interest Determination Date,
the rate per annum that the Securities Administrator determines to be either (i)
the arithmetic mean (rounded upwards if necessary to the nearest whole multiple
of 0.0625%) of the one-month, six-month or one-year (as applicable) United
States dollar lending rates which New York City banks selected by the Securities
Administrator are quoting on the relevant Interest Determination Date to the
principal London offices of leading banks in the London interbank market or (ii)
in the event that the Securities Administrator can determine no such arithmetic
mean, the lowest one-month, six-month or one-year (as applicable) United States
dollar lending rate which New York City banks selected by the Securities
Administrator are quoting on such Interest Determination Date to leading
European banks.

         RESPONSIBLE OFFICER: With respect to the Indenture Trustee or the
Securities Administrator, (a) any officer within the corporate trust department
of the Indenture Trustee including any vice president, assistant vice president,
treasurer, assistant treasurer, trust officer or any other officer of the
Indenture Trustee who customarily performs functions similar to those performed
by the persons who at the time shall be such officers, respectively, or to whom
any corporate trust matter is referred because of such person's knowledge of and
familiarity with the particular subject and (b) who shall have direct
responsibility for the administration of the applicable Agreement.

         RETAINED NOTES:  The Class B, Class V-M-5 and Class V-B Notes.

         RMBS MASTER SERVICER: Wells Fargo Bank, N.A., a national banking
association, and its successors and assigns.

         RMBS MASTER SERVICING AGREEMENT: The Master Servicing Agreement dated
as of June 22, 2005, among the RMBS Master Servicer, Securities Administrator,
Indenture Trustee and Issuer.

         RMBS SERVICING RIGHTS PLEDGEE: One or more lenders, selected by the
RMBS Servicer, to which the RMBS Servicer may pledge and assign all of its
right, title and interest in, to and under the RMBS Servicing Agreement,
including Bank of America, N.A., as the representative of certain lenders.

         RMBS MORTGAGE LOAN SCHEDULE: The schedule of Mortgage Loans attached as
Exhibit A to the RMBS Servicing Agreement.

         RMBS SERVICER: American Home Mortgage Servicing, Inc., a Maryland
corporation, and its successors and assigns.

         RMBS SERVICER REMITTANCE DATE: The third Business Day prior to the each
Payment Date.

         RMBS SERVICING AGREEMENT: The Servicing Agreement dated as of June 22,
2005, among the Seller, RMBS Servicer, RMBS Master Servicer, Issuer and
Indenture Trustee.

         RMBS SERVICING FEE: With respect to each Mortgage Loan (other than a
HELOC Mortgage Loan) and any Payment Date, the fee payable monthly to the RMBS
Servicer in respect of servicing compensation that accrues at an annual rate
equal to the RMBS Servicing Fee Rate multiplied by the Stated Principal Balance
of such Mortgage Loan as of the first day of the related Due Period.

         RMBS SERVICING FEE RATE: With respect to any adjustable rate Mortgage
Loan with an original principal balance of less than or equal to $359,650,
0.375% per annum, with respect to any adjustable rate Mortgage Loan with an
original principal balance of greater than $359,650, 0.25% per annum, with
respect to any fixed rate Mortgage Loan, 0.25% per annum.

         RMBS SERVICING TRIGGER EVENT: An RMBS Servicing Trigger Event is in
effect with respect to any Payment Date if either:

         (a) the Rolling Three Month Delinquency Rate for the Mortgage Loans is
greater than 6%; or

         (b) the cumulative amount of Realized Losses incurred on the Mortgage
Loans from the Cut-off Date through the end of the calendar month immediately
preceding such Payment Date exceeds the applicable percentage set forth below of
the aggregate Group I, Group II-C, Group II-NC, Group III, Group IV and Group V
Cut-off Date Balance:

         0.15% with respect to each month up to July 2006

         0.15% with respect to August 2006, plus an additional 1/12th of 0.50%
         for each month thereafter until July 2007

         0.65% with respect to August 2007, plus an additional 1/12th of 0.95%
         for each month thereafter until July 2008

         1.60% with respect to August 2008, plus an additional 1/12th of 0.80%
         for each month thereafter until July 2009

         2.40% with respect to August 2009, plus an additional 1/12th of 0.75%
         for each month thereafter until July 2010

         3.15% with respect to August 2010, plus an additional 1/12th of 0.55%
         for each month thereafter until July 2011

         3.70% with respect to August 2011 and each month thereafter

provided, however, that if the RMBS Servicer is rated "SQ2-" or better by
Moody's on any date, the RMBS Servicing Trigger Event will no longer be in
effect with respect to any Payment Date thereafter.

         ROLLING THREE MONTH DELINQUENCY RATE: With respect to any Payment Date,
the average of the Delinquency Rates for each of the three (or one and two, in
the case of the first and second Payment Dates, respectively) immediately
preceding months.

         SARBANES OXLEY CERTIFICATION: A written certification covering
servicing of the Mortgage Loans by all Servicers and signed by an officer of the
Depositor that complies with (i) the Sarbanes-Oxley Act of 2002, as amended from
time to time, and (ii) the February 21, 2003 Statement by the Staff of the
Division of Corporation Finance of the Securities and Exchange Commission
Regarding Compliance by Asset-Backed Issuers with Exchange Act Rules 13a-14 and
15d-14, as in effect from time to time.

         SECURITIES ACT: The Securities Act of 1933, as amended, and the rules
and regulations promulgated thereunder.

         SECURITIES ADMINISTRATOR: Wells Fargo Bank, N.A., a national banking
association, and its successors and assigns.

         SECURITIES ADMINISTRATOR COLLECTION ACCOUNT: The account established by
the Securities Administrator pursuant to Section 3.06 of the RMBS Master
Servicing Agreement.

         SECURITIES INTERMEDIARY: Deutsche Bank National Trust Company, or its
successors and assigns.

         SECURITY: Any of the Certificates or Notes.

         SECURITYHOLDER or HOLDER: Any Noteholder or a Certificateholder.

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

         SELLER: American Home Mortgage Acceptance, Inc., a Maryland
corporation, and its successors and assigns.

         SENIOR LIEN: With respect to any HELOC Mortgage Loan that is a second
priority lien, the mortgage loan or mortgage loans relating to the corresponding
Mortgaged Property having priority senior to that of such HELOC Mortgage Loan.

         SERVICER: The RMBS Servicer, the HELOC Back-Up Servicer or the HELOC
Servicer, as applicable.

         SERVICING ACCOUNT: The separate trust account created and maintained by
the RMBS Servicer, or each Subservicer with respect to the Mortgage Loans or REO
Property, which shall be an Eligible Account, for collection of taxes,
assessments, insurance premiums and comparable items as described in Section
3.08 of the RMBS Servicing Agreement.

         SERVICING ADVANCES: All customary, reasonable and necessary "out of
pocket" costs and expenses incurred in connection with a default, delinquency or
other unanticipated event in the performance by the HELOC Servicer, RMBS
Servicer, as applicable, or any Subservicer of its servicing obligations,
including, without duplication, but not limited to, the cost of (i) the
preservation, restoration and protection of a Mortgaged Property, (ii) any
enforcement or judicial proceedings, including foreclosures and any expenses
incurred in relation to any such proceedings that result from the Mortgage Loan
being registered on the MERS(R) System, (iii) the management and liquidation of
any REO Property, (iv) compliance with the obligations under Sections 3.10,
3.11, 3.13 of the RMBS Servicing Agreement, or Sections 3.11 and 3.13 of the
HELOC Servicing Agreement (v) covering any expenses incurred by or on behalf of
the HELOC Servicer or the RMBS Servicer, as applicable, in connection with
obtaining Insurance Proceeds and (vi) that is applied to the restoration or
repair of the related Mortgaged Property.

         SERVICING AGREEMENT: Each of the RMBS Servicing Agreement, the HELOC
Back-Up Servicing Agreement or the HELOC Servicing Agreement, as applicable.

         SERVICING CERTIFICATE: A certificate completed and executed by a
Servicing Officer on behalf of the HELOC Back-Up Servicer, HELOC Servicer or
RMBS Servicer, as applicable, in accordance with Section 4.01 of the HELOC
Back-Up Servicing Agreement, HELOC Servicing Agreement or RMBS Servicing
Agreement.

         SERVICING DEFAULT: The meaning assigned in Section 6.01 of the HELOC
Back-Up Servicing Agreement, HELOC Servicing Agreement, RMBS Master Servicing
Agreement or RMBS Servicing Agreement, as applicable.

         SERVICING OFFICEr: Any officer of the HELOC Back-Up Servicer, HELOC
Servicer, RMBS Servicer or RMBS Master Servicer, as applicable, involved in, or
responsible for, the administration and servicing (or master servicing, as
applicable) of the Mortgage Loans whose name and specimen signature appear on a
list of servicing officers furnished to the Indenture Trustee, the RMBS Master
Servicer or the HELOC Back-Up Servicer, as applicable, by the HELOC Back-Up
Servicer, HELOC Servicer, RMBS Servicer or RMBS Master Servicer, as applicable,
on the Closing Date, as such list may be amended from time to time.

         SIX-MONTH LIBOR: With respect to any Accrual Period, the rate
determined by the Securities Administrator on the related Interest Determination
Date on the basis of the London interbank offered rate for six-month United
States dollar deposits, as such rates appear on the Telerate Screen Page 3750,
as of 11:00 a.m. (London time) on such Interest Determination Date.

         In the event that on any Interest Determination Date, Telerate Screen
Page 3750 fails to indicate the London interbank offered rate for six-month
United States dollar deposits, then Six-Month LIBOR for the related Accrual
Period will be established by the Securities Administrator as follows:

         (i) If on such Interest Determination Date two or more Reference Banks
provide such offered quotations, Six-Month LIBOR for the related Accrual Period
shall be the arithmetic mean of such offered quotations (rounded upwards if
necessary to the nearest whole multiple of 1/16%).

         (ii) If on such Interest Determination Date fewer than two Reference
Banks provide such offered quotations, Six-Month LIBOR for the related Accrual
Period shall be the higher of (i) Six-Month LIBOR as determined on the previous
Interest Determination Date and (ii) the Reserve Interest Rate.

         (iii) If no such quotations can be obtained and no Reference Bank rate
is available, Six-Month LIBOR will be the Six-Month LIBOR rate applicable to the
preceding Accrual Period.

         The establishment of Six-Month LIBOR on each Interest Determination
Date by the Securities Administrator and the Securities Administrator's
calculation of the applicable Note Interest Rate applicable for the related
Accrual Period shall (in the absence of manifest error) be final and binding.

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

         STATED PRINCIPAL BALANCE: With respect to any Mortgage Loan that is not
a HELOC Mortgage Loan or related REO Property as of any date of determination,
(i) the principal balance of the Mortgage Loan outstanding as of the Cut-off
Date, after application of all scheduled Monthly Payments due on or before such
date, whether or not received, minus (ii) the sum of (a) the principal portion
of the Monthly Payments due with respect to such Mortgage Loan or REO Property
during each Due Period ending prior to the most recent Payment Date which were
received or with respect to which an Monthly Advance was made, (b) all Principal
Prepayments with respect to such Mortgage Loan or REO Property, and all
Insurance Proceeds, Liquidation Proceeds and REO Proceeds to the extent applied
by the RMBS Servicer as recoveries of principal in accordance with Section 3.13
of the RMBS Servicing Agreement, with respect to such Mortgage Loan or REO
Property, which were distributed pursuant to Section 3.05 of the Indenture on
any previous Payment Date, and (c) the principal portion of any Realized Loss
with respect thereto allocated pursuant to Section 3.38 of the Indenture for any
previous Payment Date, plus (iii) the cumulative amount of any Negative
Amortization; provided that the Stated Principal Balance of any Liquidated
Mortgage Loan is zero. With respect to any Mortgage Loan that is a HELOC
Mortgage Loan, the principal balance of the HELOC Mortgage Loan as of the
Cut-off Date, plus any Additional Balances in respect of such HELOC Mortgage
Loan minus all collections credited against the principal balance of such HELOC
Mortgage Loan in accordance with the related Mortgage Note and minus all prior
related Charge-Off Amounts. The Stated Principal Balance of any Liquidated HELOC
Mortgage Loan is zero.

         STATUTORY TRUST STATUTE: Chapter 38 of Title 12 of the Delaware Code,
12 DEL. Code ss.ss.3801 ET SEQ., as the same may be amended from time to time.

         STEPDOWN DATE: With respect to the Group I, Group II-C, Group II-NC,
Group III and Group IV Loans, the later to occur of (x) the Payment Date
occurring in July 2008 and (y) the first Payment Date for which the Credit
Enhancement Percentage for the Class I-A, Class II-A, Class III-A and Class IV-A
Notes (calculated for this purposes only after taking into account distributions
of principal on the Group I, Group II-C, Group II-NC, Group III and Group IV
Loans, but prior to any payment of the Class A Principal Distribution Amount for
these Notes then entitled to payments of principal on that Payment Date) is
greater than or equal to approximately 15.10%. With respect to the Group V
Loans, the later to occur of (x) the Payment Date occurring in July 2008 and (y)
the first Payment Date for which the Credit Enhancement Percentage for the Class
V-A Notes (calculated for this purposes only after taking into account
distributions of principal on the Group V Loans, but prior to any payment of the
Class V-A Principal Distribution Amount for these Notes then entitled to
payments of principal on that Payment Date) is greater than or equal to
approximately 14.60%. With respect to the Class VI-A Notes and Loan Group VI,
the later to occur of (x) the Payment Date occurring in January 2008 and (y) the
Payment Date on which the aggregate Investor Principal Distribution Amount
actually distributed to the holders of the Class VI-A Notes equals or exceeds
one-half of the Group VI Cut-off Date Balance.

         STEP-UP DATE: With respect to the Class I-A, Class II-A-1, Class
II-A-2, Class III-A, Class IV-A, Class M and Class B Notes and the Class II-A-3
Components, the Payment Date occurring after the first Payment Date for which
the aggregate Stated Principal Balance of the Group I, Group II-C, Group II-NC,
Group III and Group IV Loans as of the end of the related Due Period and the
related Pre-Funded Amount has been reduced to 10% or less of the sum of the
Group I, Group II-C, Group II-NC, Group III and Group IV Cut-off Date Balances.
With respect to the Class V-A, Class V-M and Class V-B Notes, the Payment Date
occurring after the first Payment Date for which the aggregate Stated Principal
Balance of the Group V Loans as of the end of the related Due Period and the
related Pre-Funded Amount has been reduced to 10% or less of the Group V Cut-off
Date Balance. With respect to the Class VI-A Notes, the Payment Date occurring
after the first Payment Date for which the Note Principal Balance of the Class
VI-A Notes immediately preceding such Payment Date has been reduced to 10% or
less of the initial Note Principal Balance of the Class VI-A Notes.

         STRIKE RATE: With respect to the Corridor Contract and each Payment
Date, the fixed rate set forth in the Corridor Contract used to determine
payments to the Indenture Trustee.

         SUBSERVICER: Any Person with whom the HELOC Servicer or RMBS Servicer,
as applicable, has entered into a Subservicing Agreement as a Subservicer.

         SUBSERVICING ACCOUNT: An Eligible Account established or maintained by
a Subservicer as provided for in Section 3.06(e) of the HELOC Servicing
Agreement and RMBS Servicing Agreement.

         SUBSERVICING AGREEMENT: The written contract between the HELOC Servicer
or RMBS Servicer, as applicable, and any Subservicer relating to servicing and
administration of certain Mortgage Loans as provided in Section 3.02 of the RMBS
Servicing Agreement and HELOC Servicing Agreement.

         SUBSEQUENT RECOVERIES: Unexpected recoveries, net of reimbursable
expenses, with respect to a Liquidated Mortgage Loan or Liquidated HELOC that
resulted in a Realized Loss in a month prior to the receipt of such recoveries.

         SUBSEQUENT CUT-OFF DATE: With respect to any Subsequent Mortgage Loan
or Subsequent HELOC Mortgage Loans, the date, as designated by the Depositor,
that is the later of (i) the first day of the month in which the related
Subsequent Transfer Date occurs and (ii) the origination date of such Subsequent
Mortgage Loan or Subsequent HELOC Mortgage Loan, as the cut-off date with
respect to the related Subsequent Mortgage Loan or Subsequent HELOC Mortgage
Loan.

         SUBSTITUTION ADJUSTMENT AMOUNT: With respect to any Eligible Substitute
Mortgage Loan, the amount as defined in Section 2.03 of the HELOC Servicing
Agreement or RMBS Servicing Agreement, as applicable.

         SUBSEQUENT MORTGAGE LOAN PURCHASE AGREEMENT: Any of the Group I
Subsequent Mortgage Loan Purchase Agreement, Group II-C Subsequent Mortgage Loan
Purchase Agreement, Group II-NC Subsequent Mortgage Loan Purchase Agreement,
Group III Subsequent Mortgage Loan Purchase Agreement, Group IV Subsequent
Mortgage Loan Purchase Agreement, Group V Subsequent Mortgage Loan Purchase
Agreement and Group VI Subsequent HELOC Mortgage Loan Purchase Agreement.

         SUBSEQUENT TRANSFER DATE: With respect to any Group I, Group II-C,
Group II-NC, Group III, Group IV, Group V and Group VI Mortgage Loan, the
applicable date upon which such Mortgage Loan was purchased from the Seller with
the amounts on deposit in the related Pre-Funding Account.

         TANGIBLE NET WORTH: Net Worth, less the sum of the following (without
duplication): (a) any other assets of American Home Mortgage Investment Corp.
and its consolidated subsidiaries that would be treated as intangibles under
GAAP including, without limitation, any write-up of assets (other than
adjustments to market value to the extent required under GAAP with respect to
excess servicing, residual interests in offerings of asset-backed securities and
asset-backed securities that are interest-only securities), good-will, research
and development costs, trade-marks, trade names, copyrights, patents and
unamortized debt discount and expenses and (b) loans or other extensions of
credit to officers of American Home Mortgage Investment Corp. or its
consolidated subsidiaries other than Mortgage Loans made to such Persons in the
ordinary course of business.

         TELERATE SCREEN PAGE 3750: The display designated as page 3750 on the
Telerate Service (or such other page as may replace page 3750 on that service
for the purpose of displaying London interbank offered rates of major banks).

         TRANSFER DATE: As defined in Section 3.20 of the HELOC Servicing
Agreement.

         TRANSFER NOTICE DATE: As defined in Section 3.20 of the HELOC Servicing
Agreement.

         TRANSFEROR: The Holder of the Certificates as shown on the Certificate
Register.

         TRANSFEROR INTEREST: Represents the pari passu interest in the HELOC
Mortgage Loans equal to the cumulative amount of draws on the HELOC Mortgage
Loans beginning with the Rapid Amortization Period. The Transferor Interest is
calculated as the outstanding pool balance of the HELOCs at the end of the
previous Due Period less the Invested Amount. For purposes of the Basic
Documents, the Transferor Interest shall be considered part of the Owner Trust
Certificates and shall not be transferable or assignable separately.

         TRANSFEROR INTEREST PRINCIPAL BALANCE: With respect to any Payment
Date, the amount by which the Pool Principal Balance exceeds the Invested
Amount, in each case at the end of the related Due Period.

         TRANSFEROR PERCENTAGE: For any Payment Date, 100% minus the Floating
Allocation Percentage for such Payment Date.

         TREASURY REGULATIONS: Regulations, including proposed or temporary
Regulations, promulgated under the Code. References herein to specific
provisions of proposed or temporary regulations shall include analogous
provisions of final Treasury Regulations or other successor Treasury
Regulations.

         TRIGGER EVENT: With respect to Loan Group I, Loan Group II-C, Loan
Group II-NC, Loan Group III and Loan Group IV, a Trigger Event is in effect with
respect to any Payment Date on and after the related Stepdown Date if either

         (a)      the Rolling Three Month Delinquency Rate for the Group I,
                  Group II-C, Group II-NC, Group III and Group IV Loans as of
                  the close of business on the last day of the preceding
                  calendar month exceeds 40% of the aggregate Note Principal
                  Balance of the Class M Notes and Class B Notes plus the
                  aggregate Overcollateralized Amount for Loan Group I, Loan
                  Group II-C, Loan Group II-NC, Loan Group III and Loan Group
                  IV, divided by the aggregate Stated Principal Balance of Group
                  I, Group II-C, Group II-NC, Group III and Group IV Loans; or

         (b)      the cumulative amount of Realized Losses incurred on the Group
                  I, Group II-C, Group II-NC, Group III and Group IV Loans from
                  the Cut-off Date through the end of the calendar month
                  immediately preceding such Payment Date exceeds the applicable
                  percentage set forth below of the aggregate Stated Principal
                  Balance of the Group I, Group II-C, Group II-NC, Group III and
                  Group IV Loans as of the Cut-off Date:

                  July 2008 to June 2009.................  1.75%
                  July 2009 and thereafter...............  2.00%

         With respect to Loan Group V, a Trigger Event is in effect with respect
to any Payment Date on and after the related Stepdown Date if either

         (a)      the Rolling Three Month Delinquency Rate for the Group V Loans
                  as of the close of business on the last day of the preceding
                  calendar month exceeds 50% of the aggregate Note Principal
                  Balance of the Class V-M Notes and Class V-B Notes plus the
                  aggregate Overcollateralized Amount for Loan Group V, divided
                  by the aggregate Stated Principal Balance of the Group V
                  Loans; or

         (b)      the cumulative amount of Realized Losses incurred on the Group
                  V Loans from the Cut-off Date through the end of the calendar
                  month immediately preceding such Payment Date exceeds the
                  applicable percentage set forth below of the aggregate Stated
                  Principal Balance of the Group V Loans as of the Cut-off Date:

                  July 2008 to June 2009.................  1.75%
                  July 2009 and thereafter...............  2.00%

With respect to Loan Group VI, a Trigger Event is in effect with respect to any
Payment Date on and after the Stepdown Date if either:

         1. the average of the Group VI Excess Spread Percentage for that
Payment Date and the prior two Payment Dates is less than or equal to 1.75% per
annum;

         2. the Rolling Three Month Delinquency Rate for the Group VI Loans as
of the close of business on the last day of the preceding Due Period exceeds
5.00% of aggregate Stated Principal Balance of Group VI Loans;

         3. the cumulative amount of Charge-Off Amounts incurred on the Group VI
Loans from the Cut-off Date through the end of the calendar month immediately
preceding such Payment Date exceeds the applicable percentage set forth below of
the aggregate Stated Principal Balance of the Group VI Loans as of the Cut-off
Date:

                  December 2006 to June 2007.............  2.50%
                  July 2007 to June 2008.................  3.25%
                  July 2008 and thereafter...............  4.00%

         TRUST: The American Home Mortgage Investment Trust 2005-2 to be created
pursuant to the Trust Agreement.

         TRUST AGREEMENT: The Amended and Restated Trust Agreement dated as of
June 22, 2005, among the Owner Trustee, the Depositor and Deutsche Bank National
Trust Company, as Certificate Registrar and Certificate Paying Agent, relating
to the Trust.

         TRUST ESTATE: The meaning specified in the Granting Clause of the
Indenture.

         TRUST INDENTURE ACT OR TIA: The Trust Indenture Act of 1939, as amended
from time to time, as in effect on any relevant date.

         UCC: The Uniform Commercial Code, as amended from time to time, as in
effect in any specified jurisdiction.

         UNDERWRITERS: Lehman Brothers Inc., Bear, Stearns & Co. Inc., UBS
Securities LLC, Greenwich Capital Markets, Inc. and Goldman, Sachs & Co. or
their successors.

         UNINSURED CAUSE: Any cause of damage to property subject to a Mortgage
that the complete restoration of such property is not fully reimbursable by the
hazard insurance policies.

         UNPAID INTEREST SHORTFALL: For each Class of Notes and any Payment
Date, such Notes' pro rata share, based on the amount of Accrued Note Interest
otherwise payable on such Note on such Payment Date, of (a) any Prepayment
Interest Shortfalls, to the extent not covered by Compensating Interest, and (b)
any Relief Act Shortfalls, in each case to the extent incurred with respect to
the related Mortgage Loans.<PAGE>

                                                                     Exhibit 4.1

                          JAMES HARDIE INDUSTRIES N. V.

                           2001 EQUITY INCENTIVE PLAN

                              AMENDED AND RESTATED
                               (NOVEMBER 11, 2003)

                                    ARTICLE I
                                 PURPOSE OF PLAN

        The Company adopted this Plan to promote the interests of the Company
and its stockholders by using investment interests in the Company to attract,
retain and motivate its and its Affiliated Entities' employees and management.
Capitalized terms not otherwise defined herein have the meanings ascribed to
them in Article VII.

                                   ARTICLE II
                         EFFECTIVE DATE AND TERM OF PLAN

        2.1 TERM OF PLAN. This Plan became effective as of the Effective Date
and will continue in effect until the Expiration Date, at which time this Plan
will automatically terminate.

        2.2 EFFECT ON AWARDS. Awards may be granted only during the Plan Term,
but each Award granted during the Plan Term will remain in effect after the
Expiration Date until such Award has been exercised or terminated or expires in
accordance with its terms and the terms of this Plan.

                                   ARTICLE III
                             SHARES SUBJECT TO PLAN

        3.1 BOARD AUTHORIZATION.

               (a) On September 26, 2001, the Joint Board resolved to: (i)
authorize and approve the adoption of the Plan; (ii) establish the Committee to
administer the Plan, including granting Awards covering Plan Shares under the
Plan to Eligible Persons, (iii) appoint Alan McGregor, Martin Koffel and
Meredith Hellicar as initial members of the Committee, and (iv) reserve
45,077,100 shares of Common Stock for issuance upon exercise of Awards,
effective immediately following the submission of the declaration referred to in
article 52.3 of the Company's articles of association with the chamber of
commerce and industries for Amsterdam (the "Plan Shares").

               (b) On August 9, 2002, the authority to issue shares in the
Company and to grant rights to subscribe for shares (including pursuant to the
Plan) was transferred from the Joint Board to the Supervisory Board.

                                                                               1
<PAGE>

               (c) On November 11, 2003, the Board resolved to appoint the
Remuneration Committee of the Board to be the Administrator of the Plan and to
amend and restate this Plan to (i) provide for the reduction of the exercise
price of Stock Options and other Awards granted under this Plan in the event of
a capital return by the Company, and (ii) clarify the intent and terms of this
Plan. As a result of the discretion granted to the Administrator in this Plan
and the benefits and consideration provided to Recipients, this Amendment did
not require the written consent of Recipients. This amended and restated Plan
shall govern the terms of all Awards granted on or after Effective Date.

        3.2 NUMBER OF SHARES. The maximum number of shares of Common Stock that
may be issued pursuant to Awards granted under this Plan is 45,077,100, subject
to adjustment as set forth in Section 3.5; provided, however, that the maximum
number of shares of Common Stock that may be offered in Australia (whether such
offer is made under an option or otherwise) is equal to the maximum number of
shares that may be offered (whether such offer is made under an option or
otherwise) in accordance with applicable Australian law without the need to
issue an Australian prospectus, subject to adjustment as set forth in Section
3.5.

        3.3 SOURCE OF SHARES. The Common Stock to be issued under this Plan will
be made available, at the discretion of the Administrator, either from
authorized but unissued shares of Common Stock, or from previously issued shares
of Common Stock reacquired by the Company in accordance with Dutch law and the
Company's articles of association.

        3.4 AVAILABILITY OF UNUSED SHARES. Shares of Common Stock subject to
unexercised portions of any Award that expire, terminate or are canceled, and
shares of Common Stock issued pursuant to an Award that are reacquired by the
Company pursuant to the terms of the Award under which such shares were issued,
shall, upon such expiration, termination, cancellation or reacquisition, become
available for the grant of further Awards under this Plan as part of the shares
available under Section 3.2. In addition, shares of Common Stock subject to an
Award that are delivered to or retained by the Company upon exercise to cover
cashless exercise or tax withholding, and any shares of Common Stock underlying
an Award that are not issued because the Award is settled in cash, shall be
available for grant of further Awards under this Plan as part of the shares
available under Section 3.2.

        3.5 ADJUSTMENT PROVISIONS.

               (a) Adjustments. If the Company consummates any Reorganization in
which holders of shares of Common Stock are entitled to receive in respect of
such shares any additional shares or new or different shares or securities, cash
or other consideration (including, without limitation, a different number of
shares of Common Stock), or if the outstanding shares of Common Stock are
increased, decreased or exchanged for a different number or kind of shares or
other securities through merger, consolidation, sale or exchange of assets of
the Company, reorganization, re-capitalization, reclassification, combination,
stock dividend, stock split, reverse stock split, spin-off, return of capital,
or similar transaction, then, subject to Section 5.15, an appropriate and
proportionate adjustment shall be made by the Administrator in: (1) the maximum
number and kind of shares subject to this Plan as provided in Section 3.2; (2)
the number and kind of shares or other securities subject to then outstanding
Awards; and/or (3) the

                                                                               2
<PAGE>

price for each share or other unit of any other securities subject to, or
measurement criteria applicable to, then outstanding Awards.

               (b) No Fractional Interests. No fractional interests will be
issued under the Plan resulting from any adjustments.

               (c) Adjustments Related to Company Stock. To the extent any
adjustments relate to stock or securities of the Company, such adjustments will
be made by the Administrator, whose determination in that respect will be final,
binding and conclusive.

               (d) Right to Make Adjustment. The grant of an Award will not
affect in any way the right or power of the Company to make adjustments,
reclassifications, reorganizations or changes of its capital or business
structure or to merge or to consolidate or to dissolve, liquidate or sell, or
transfer all or any part of its business or assets.

        3.6 RESERVATION OF SHARES. The Company will at all times reserve and
keep available for issuance shares of Common Stock equaling at least the total
number of shares of Common Stock issuable pursuant to all outstanding Awards
with due observance of Section 3.2.

                                   ARTICLE IV
                             ADMINISTRATION OF PLAN

        4.1 ADMINISTRATOR.

               (a) Plan Administration. This Plan shall be administered by the
Board and may also be administered by a Committee of the Board appointed
pursuant to Section 4.1(b).

               (b) Administration by Committee. The Board in its sole discretion
may from time to time appoint a Committee of not less than two (2) Board members
with authority to administer this Plan in whole or part and, subject to
applicable law, to exercise any or all of the powers, authority and discretion
of the Board under this Plan. The Board may from time to time increase or
decrease (but not below two (2)) the number of members of the Committee, remove
from membership on the Committee all or any portion of its members, and/or
appoint such person or persons as it desires to fill any vacancy existing on the
Committee, whether caused by removal, resignation or otherwise. The Board may
disband the Committee at any time.

        4.2 AUTHORITY OF ADMINISTRATOR.

               (a) Authority to Interpret Plan. Subject to the express
provisions of this Plan, the Administrator shall have the power to implement,
interpret and construe this Plan and any Awards and Award Documents or other
documents defining the rights and obligations of the Company and Recipients
hereunder and thereunder, to determine all questions arising hereunder and
thereunder, and to adopt and amend such rules and regulations for the
administration hereof and thereof as it may deem desirable. The interpretation
and construction by the Administrator of any provisions of this Plan or of any
Award or Award Document, and any action taken by, or inaction of, the
Administrator relating to this Plan or any Award or Award Document, shall be
within the discretion of the Administrator and shall be conclusive and binding
upon all persons.

                                                                               3
<PAGE>

Subject only to compliance with the express provisions hereof, the Administrator
may act in its discretion in matters related to this Plan and any and all Awards
and Award Documents.

               (b) Authority to Grant Awards. Subject to the express provisions
of this Plan, the Administrator may from time to time in its discretion select
the Eligible Persons to whom, and the time or times at which, Awards will be
granted or sold, the nature of each Award, the number of shares of Common Stock
or the number of rights that make up or underlie each Award, the exercise price
and period (if applicable) for the exercise of each Award, and such other terms
and conditions applicable to each individual Award as the Administrator may
determine. Any and all terms and conditions of Awards may be established by the
Administrator without regard to existing Awards or other grants and without
incurring any obligation of the Company in respect of subsequent Awards. The
Administrator may grant or sell, at any time, new Awards to an Eligible Person
who has previously received Awards or other grants (including other stock
options) regardless of the status of such other Awards or grants. The
Administrator may grant Awards singly or in combination or in tandem with other
Awards as it determines in its discretion.

               (c) Procedures. Subject to the Company's constitution or any
Board resolution conferring authority on the Committee, any action of the
Administrator with respect to the administration of this Plan must be taken
pursuant to a majority vote of the authorized number of members of the
Administrator or by the unanimous written consent of its members; provided,
however, that (i) if the Administrator is the Committee and consists of two (2)
members, then actions of the Administrator must be unanimous, and (ii) actions
taken by the Board will be valid if approved in accordance with Dutch law.

        4.3 NO LIABILITY. No member of the Board or the Committee or any
designee thereof will be liable for any action or inaction with respect to this
Plan or any Award or any transaction arising under this Plan or any Award except
in circumstances constituting bad faith of such member.

        4.4 AMENDMENTS.

               (a) Plan Amendments. The Administrator may at any time and from
time to time in its discretion, insofar as permitted by applicable law, rule or
regulation and subject to Section 4.4(c), suspend or discontinue this Plan or
revise or amend it in any respect whatsoever, and this Plan as so revised or
amended will govern all Awards, including those granted before such revision or
amendment. Without limiting the generality of the foregoing, the Administrator
is authorized to amend this Plan to comply with or take advantage of amendments
to applicable laws, rules, or regulations of any exchange or market system upon
which the shares of Common Stock are listed or traded, or any rules or
regulations promulgated thereunder. No stockholder approval of any amendment or
revision will be required unless such approval is required by applicable law,
rule or regulation.

               (b) Award Amendments. The Administrator may at any time and from
time to time in its discretion, subject to Section 4.4(c) and compliance with
applicable statutory or administrative requirements, accelerate or extend the
vesting or exercise period of any Award as

                                                                               4
<PAGE>

a whole or in part, and make such other modifications in the terms and
conditions of an Award as it deems advisable.

               (c) Limitation. Except as otherwise provided in this Plan or in
the applicable Award Document, no amendment, revision, suspension or termination
of this Plan or an outstanding Award that would alter, impair or diminish in any
material respect any rights or obligations under any Award theretofore granted
under this Plan may be effected without the written consent of the Recipient to
whom such Award was granted, provided that no such consent shall be required if
the Administrator determines in its sole discretion and prior to the date of any
Change in Control that such amendment or revision either is required or
advisable in order for the Company, the Plan or the Award to satisfy any law or
regulation or to meet the requirements of any accounting standard, or is not
reasonably likely to diminish the Recipient's benefits thereunder or that any
diminution has been adequately compensated for.

        4.5 OTHER COMPENSATION PLANS. The adoption of this Plan will not affect
any other stock option, incentive or other compensation plans in effect from
time to time for the Company or any Affiliated Entity, and this Plan will not
preclude the Company or any Affiliated Entity from establishing any other forms
of incentive or other compensation for their employees or their directors,
whether or not approved by stockholders.

        4.6 PLAN BINDING ON SUCCESSORS. This Plan will be binding upon the
successors and assigns of the Company.

        4.7 REFERENCES TO SUCCESSOR STATUTES, REGULATIONS AND RULES. Any
reference in this Plan to a particular statute, regulation or rule will also
refer to any successor provision of such statute, regulation or rule.

        4.8 INVALID PROVISIONS. In the event that any provision of this Plan is
found to be invalid or otherwise unenforceable under any applicable law, such
invalidity or unenforceability is not to be construed as rendering any other
provisions contained herein invalid or unenforceable, and all such other
provisions are to be given full force and effect to the same extent as though
the invalid and unenforceable provision were not contained herein.

        4.9 GOVERNING LAW. This Plan will be governed by and interpreted in
accordance with the laws of The Netherlands, without giving effect to the
principles of the conflicts of laws thereof.

        4.10 INTERPRETATION. Headings herein are for convenience of reference
only, do not constitute a part of this Plan, and will not affect the meaning or
interpretation of this Plan. References herein to Sections or Articles are
references to the referenced Section or Article hereof, unless otherwise
specified. For purposes of the Plan, references to the "grant" or "granting" of
Awards shall mean the allocation by the Administrator of Awards covering Plan
Shares.

                                                                               5
<PAGE>

                                    ARTICLE V
                            GENERAL AWARD PROVISIONS

        5.1 PARTICIPATION IN PLAN.

               (a) Eligibility to Receive Awards. A person is eligible to
receive grants of Awards if, at the time of the grant of the Award, such person
is an Eligible Person. Status as an Eligible Person shall not be construed as a
commitment that any Award will be granted under this Plan to an Eligible Person
or to Eligible Persons generally.

               (b) Awards to Foreign Nationals. Notwithstanding anything to the
contrary herein, the Administrator may, in order to fulfill the purposes of this
Plan, modify grants of Awards to Recipients who are foreign nationals or
employed outside of Australia to recognize differences in applicable law, tax
policy or local custom.

        5.2 AWARD DOCUMENTS.

               (a) Generally. Subject to Section 5.2(b), the grant of each Award
must be reflected in an agreement duly executed on behalf of the Company and by
the Recipient or, in the Administrator's discretion, a confirming memorandum
issued by the Company to the Recipient, setting forth such terms and conditions
applicable to the Award as the Administrator may in its discretion determine.
Awards shall not be deemed made or binding upon the Company, and Recipients
shall have no rights thereto, until such an agreement is entered into between
the Company and the Recipient or such a memorandum is delivered by the Company
to the Recipient, but an Award may have an effective date prior to the date of
such an agreement or memorandum. Award Documents may be (but need not be)
identical and must comply with and be subject to the terms and conditions of
this Plan, a copy of which will be provided to each Recipient and incorporated
by reference into each Award Document. Any Award Document may contain such other
terms, provisions and conditions not inconsistent with this Plan as may be
determined by the Administrator. In case of any conflict between this Plan and
any Award Document, this Plan shall control.

               (b) Australian Nationals. In addition to the document referred to
in Section 5.2(a), the Company shall comply with any requirements under
Australian law and provide such documents as are necessary to avoid the need for
a Disclosure Document.

        5.3 PAYMENT FOR AWARDS.

               (a) Payment of Exercise Price. The exercise price or other
payment for an Award is payable upon the exercise of a Stock Option or upon
other purchase of shares pursuant to an Award granted hereunder by delivery of
legal tender of Australia or payment of such other consideration as the
Administrator may from time to time deem acceptable in any particular instance,
including but not limited to delivery of legal tender of the United States;
provided, however, that the Administrator may, in the exercise of its
discretion, allow exercise of an Award in a broker-assisted or similar
transaction in which the exercise price is not received by the Company until
promptly after exercise.

                                                                               6
<PAGE>

               (b) Broker-Assisted Exercises. If permitted by the Administrator
and if the Company has established such a procedure, the exercise price for
Awards may be paid through a special sale and remittance procedure pursuant to
which the Recipient shall concurrently provide irrevocable instruction to (i) a
Company-designated brokerage firm to effect the immediate sale of the purchased
shares and remit to the Company, out of sale proceeds available on the
settlement date, sufficient funds to cover the aggregate exercise price payable
for the purchased shares of Common Stock, plus all applicable income and
employment taxes required to be withheld by the Company by reason of such
exercise and (ii) the Company to deliver the certificates for the purchased
shares of Common Stock directly to such brokerage firm in order to complete the
sale.

               (c) Company Assistance. The Company may assist any Recipient in
the payment of the purchase price or other amounts payable in connection with
the receipt or exercise of an Award, by lending such amounts to such person on
such terms and at such rates of interest (if any) and upon such security (if
any) as may be consistent with applicable law, including but not limited to the
Dutch Consumer Credit Act, the Sarbanes-Oxley Act of 2002, and Regulation G
promulgated by the Federal Reserve Board, and approved by the Administrator. In
case of such a loan, the Administrator may require that the exercise be followed
by a prompt sale of some or all of the underlying shares and that a portion of
the sale proceeds be dedicated to full payment of the exercise price and amounts
required pursuant to Section 5.10.

               (d) Cashless Exercise. If permitted in any case by the
Administrator in its discretion, the exercise price for Awards may be paid by
shares of Common Stock delivered in transfer to the Company by or on behalf of
the person exercising the Award and duly endorsed in blank or accompanied by
stock powers duly endorsed in blank, with signatures guaranteed in accordance
with the applicable legal statutes if required by the Administrator; or retained
by the Company from the securities otherwise issuable upon exercise or surrender
of vested and/or exercisable Awards or other equity awards previously granted to
the Recipient and being exercised (if applicable) (in either case valued at Fair
Market Value as of the exercise date); or such other consideration as the
Administrator may from time to time in the exercise of its discretion deem
acceptable in any particular instance.

               (e) No Precedent. Recipients will have no rights to the
broker-assisted procedure described in Section 5.3(b), the assistance described
in Section 5.3(c) or the exercise techniques described in Section 5.3(d), and
the Company may offer or permit such assistance or techniques on an ad hoc basis
to any Recipient without incurring any obligation to offer or permit such
assistance or techniques on other occasions or to other Recipients.

        5.4 NO EMPLOYMENT RIGHTS. Nothing contained in this Plan (or in Award
Documents or in any other documents related to this Plan or to Awards) will
confer upon any Eligible Person or Recipient any right to continue in the employ
of or engagement by the Company or any Affiliated Entity or constitute or form
part of any contract or agreement of employment or engagement, or interfere in
any way with the right of the Company or any Affiliated Entity to reduce such
person's compensation or other benefits or to terminate the employment or
engagement of such Eligible Person or Recipient, with or without cause. Except
as expressly provided in this Plan or in any statement evidencing the grant of
an Award, the

                                                                               7
<PAGE>

Company has the right to deal with each Recipient in the same manner as if this
Plan and any such statement evidencing the grant of an Award did not exist,
including, without limitation, with respect to all matters related to the
hiring, discharge, compensation and conditions of the employment or engagement
of the Recipient. Unless otherwise set forth in a written agreement binding upon
the Company or an Affiliated Entity or required by applicable law, all employees
of the Company or an Affiliated Entity are "at will" employees whose employment
may be terminated by the Company or the Affiliated Entity at any time for any
reason or no reason, without payment or penalty of any kind. Any question(s) as
to whether and when there has been a termination of a Recipient's employment or
engagement, the reason (if any) for such termination, and/or the consequences
thereof under the terms of this Plan or any statement evidencing the grant of an
Award pursuant to this Plan will be determined by the Administrator and the
Administrator's determination thereof will be final and binding.

        5.5 RESTRICTIONS UNDER APPLICABLE LAWS AND REGULATIONS.

               (a) Government and Other Approvals. All Awards will be subject to
the requirement that, if at any time the Company determines, in its discretion,
that the listing, registration or qualification of the securities subject to
Awards granted under this Plan upon any securities exchange or inter-dealer
quotation system or under any Australian or foreign law, or the consent of the
members of the Company or approval of any government or regulatory body
(including any stock exchange on which the Company's securities are listed), is
necessary or desirable or required by law or any listing rules of any relevant
stock exchange as a condition of, or in connection with, the granting of such an
Award or the issuance, if any, or purchase of securities subject to an Award
granted under this Plan, such Award may not be exercised as a whole or in part
unless and until such listing, registration, qualification, consent or approval
has been effected or obtained free of any conditions not acceptable to the
Company. During the term of this Plan, the Company will use its reasonable
efforts to seek to obtain from the appropriate governmental and regulatory
agencies (including any relevant stock exchange) any requisite qualifications,
consents, approvals or authorizations in order to issue and sell such number of
shares of its Common Stock as is sufficient to satisfy the requirements of this
Plan. The inability of the Company to obtain any such qualifications, consents,
approvals or authorizations will relieve the Company of any liability in respect
of the non-issuance or sale of such stock as to which such qualifications,
consents, approvals or authorizations pertain.

               (b) No Registration Obligation; Recipient Representations. The
Company will be under no obligation to register or qualify the issuance of
Awards or underlying securities under the applicable securities laws (unless
required by such laws). Unless the issuance of Awards and underlying securities
have been registered under applicable securities laws, the Company shall be
under no obligation to issue any Awards or underlying securities unless the
Awards and underlying securities may be issued pursuant to applicable exemptions
from such registration or qualification requirements. In connection with any
such exempt issuance, the Administrator may require the Recipient to provide a
written representation and undertaking to the Company, satisfactory in form and
scope to the Company, that such Recipient is acquiring such Awards and
underlying securities for such Recipient's own account as an investment and not
with a view to, or for sale in connection with, the distribution of any such
securities, and that such person will make no transfer of the same except in
compliance with any rules and regulations in force at the time of such transfer
under applicable law, and that if securities are

                                                                               8
<PAGE>

issued without registration, a legend to this effect (together with any other
legends deemed appropriate by the Administrator) may be endorsed upon the
securities so issued, and to the effect of any additional representations that
are appropriate in light of applicable securities laws and rules. The Company
may also order its transfer agent to stop transfers of such shares. The
Administrator may also require the Recipient to provide the Company such
information and other documents as the Administrator may request in order to
satisfy the Administrator as to the investment sophistication and experience of
the Recipient and as to any other conditions for compliance with any such
exemptions from registration or qualification.

               (c) Compliance with Laws. Any offer of Awards, any announcement
thereof and all offer notices, publications, advertisements and other documents,
such as Award Documents, in which an offer of an Award is made or a forthcoming
offer is announced, will (i) be in compliance with the applicable laws, rules
and regulations of the jurisdictions in which the persons to whom the offer is
directed are established, domiciled or resident and (ii) only be directed to
Eligible Persons. In addition, in an Award Document, the Recipient may be
required to represent that he or she is an Eligible Person. Any offer of Awards
by the Company shall, or receipt, purchase or exercise of Awards or Plan Shares
by a Recipient, or sale or other disposition of Plan Shares by a Recipient
should comply with the Company's insider trading policy or policies and all
applicable insider trading laws, rules and regulations.

        5.6 ADDITIONAL CONDITIONS. Any Award may also be subject to such other
provisions (whether or not applicable to any other Award or Recipient) as the
Administrator deems appropriate, including without limitation provisions for the
forfeiture of or restrictions on resale, transfer or other disposition of
securities of the Company acquired under this Plan, provisions giving the
Company the right to repurchase securities of the Company acquired under this
Plan in the event the Recipient leaves the Company for any reason or elects to
effect any disposition thereof, and provisions to comply with applicable
securities laws.

        5.7 NO PRIVILEGES RE STOCK OWNERSHIP OR SPECIFIC ASSETS. Except as
otherwise set forth herein, a Recipient or a permitted transferee of an Award
will have no rights as a shareholder with respect to any shares issuable or
issued in connection with the Award until the Recipient has delivered to the
Company all amounts payable and performed all obligations required to be
performed in connection with exercise of the Award and the Company has issued
such shares. No person will have any right, title or interest in any fund or in
any specific asset (including shares of Common Stock) of the Company by reason
of any Award granted hereunder. Neither this Plan (or any documents related
hereto) nor any action taken pursuant hereto is to be construed to create a
trust of any kind or a fiduciary relationship between the Company and any
person. To the extent that any person acquires a right to receive an Award
hereunder, such right shall be no greater than the right of any unsecured
general creditor of the Company.

        5.8 NON-ASSIGNABILITY. No Award is assignable or transferable except:
(a) by will or by the laws of descent and distribution; or (b) upon dissolution
of marriage pursuant to a qualified domestic relations order or similar order by
a court of competent jurisdiction or, in the discretion of the Administrator and
under circumstances that would not adversely affect the interests of the
Company, transfers for estate planning purposes or pursuant to a nominal
transfer that does not result in a change in beneficial ownership. During the
lifetime of a Recipient, an

                                                                               9
<PAGE>

Award granted to such person will be exercisable only by the Recipient (or the
Recipient's permitted transferee) or such person's guardian or legal
representative.

        5.9 INFORMATION TO RECIPIENTS.

               (a) Provision of Information. The Administrator in its sole
discretion may determine what, if any, financial and other information is to be
provided to Recipients and when such financial and other information is to be
provided after giving consideration to applicable laws, rules and regulations.

               (b) Confidentiality. The furnishing of financial and other
information that is confidential to the Company is subject to the Recipient's
agreement to maintain the confidentiality of such financial and other
information, and not to use the information for any purpose other than
evaluating the Recipient's position under this Plan. The Administrator may
impose other restrictions on the access to and use of such confidential
information and may require a Recipient to acknowledge the Recipient's
obligations under this Section 5.9(b) (which acknowledgment is not to be a
condition to the Recipient's obligations under this Section 5.9(b)).

        5.10 WITHHOLDING TAXES. Whenever the granting, vesting or exercise of
any Award, or the issuance of any securities upon exercise of any Award or
transfer thereof, gives rise to tax or tax withholding liabilities or
obligations, the Administrator will have the right as a condition thereto to
require the Recipient to remit to the Company an amount sufficient to satisfy
any applicable statutory withholding tax requirements arising in connection
therewith. The Administrator may, in its discretion, allow satisfaction of tax
withholding requirements by accepting delivery of shares of Common Stock of the
Company or by withholding a portion of the shares of Common Stock otherwise
issuable in connection with an Award, in each case valued at Fair Market Value
as of the date of such delivery or withholding, as the case may be, is
determined.

        5.11 LEGENDS ON AWARDS AND STOCK CERTIFICATES. Each Award Document and
each certificate (if any) representing securities acquired upon vesting or
exercise of an Award must be endorsed with all legends, if any, required by
applicable securities and other laws to be placed on the Award Document and/or
the certificate (if any). The determination of which legends, if any, will be
placed upon Award Documents or the certificates will be made by the
Administrator in its discretion and such decision will be final and binding.

        5.12 EFFECT OF TERMINATION OF EMPLOYMENT ON AWARDS.

               (a) Alteration of Vesting and Exercise Periods. Notwithstanding
anything to the contrary herein, the Administrator may in its discretion (i)
designate shorter or longer periods following a Recipient's termination of
employment during which Awards may vest or be exercised; provided, however, that
any shorter periods determined by the Administrator will be effective only if
provided for in this Plan or the instrument that evidences the grant to the
Recipient of the affected Award or if such shorter period is agreed to in
writing by the Recipient, and (ii) accelerate the vesting of all or any portion
of any Awards by increasing the number of shares purchasable at any time.

                                                                              10
<PAGE>

               (b) Leave of Absence. In the case of any employee on an approved
leave of absence, the Administrator may make such provision respecting
continuance of Awards granted to such employee as the Administrator in its
discretion deems appropriate, except that in no event will an Award be
exercisable after the date such Award would expire in accordance with its terms
had the Recipient remained continuously employed.

               (c) General Cessation. Except as otherwise set forth in this Plan
or an Award Document or as determined by the Administrator in its discretion,
all Awards granted to a Recipient, and all of such Recipient's rights
thereunder, will terminate upon termination for any reason of such Recipient's
employment with the Company or any Affiliated Entity.

        5.13 RESTRICTIONS ON COMMON STOCK AND OTHER SECURITIES. Common Stock or
other securities of the Company issued or issuable in connection with any Award
will be subject to all of the restrictions imposed under this Plan upon Common
Stock issuable or issued upon exercise of Stock Options, except as otherwise
determined by the Administrator.

        5.14 CANCELLATION AND RESCISSION OF AWARDS. Unless an Award Document or
other separate written agreement binding upon the Company provides otherwise,
the Administrator may cancel any unexpired, unpaid or deferred Award (whether or
not vested) at any time if the Recipient thereof fails at any time to comply
with all applicable provisions of the Award Document or this Plan.

        5.15 EFFECT OF CHANGE IN CONTROL. Unless otherwise set forth in an Award
Document or in this Section 5.15, as of the effective time and date of any
Change in Control, this Plan and any then outstanding Awards (whether or not
vested) will automatically terminate unless: (a) provision is made in writing in
connection with such transaction for the continuance of this Plan and for the
assumption of such Awards, or for the substitution for such Awards of new awards
covering the securities of a successor entity or an affiliate thereof, on no
less favorable terms and with appropriate adjustments as to the number and kind
of securities and exercise prices or other measurement criteria, in which event
this Plan and such outstanding Awards will continue or be replaced, as the case
may be, in the manner and under the terms so provided; or (b) the Board
otherwise provides in writing for such adjustments as it deems appropriate in
the terms and conditions of the then-outstanding Awards (whether or not vested),
including, without limitation, (i) accelerating the vesting of outstanding
Awards, and/or (ii) providing for the cancellation of Awards and their automatic
conversion into the right to receive the securities, cash or other consideration
that a holder of the shares underlying such Awards would have been entitled to
receive upon consummation of such Change in Control had such shares been issued
and outstanding immediately prior to the effective date and time of the Change
in Control (net of the appropriate option exercise prices). If, pursuant to the
foregoing provisions of this Section 5.15, this Plan and the Awards terminate by
reason of the occurrence of a Change in Control without provision for any of the
action(s) described in clause (a) or (b) hereof, then subject to Section 5.12,
Section 5.16 and Section 6.1(e), any Recipient holding outstanding Awards will
have the right, at such time prior to the consummation of the Change in Control
as the Board designates, to exercise or receive the full benefit of the
Recipient's Awards to the full extent not theretofore exercised, including any
installments which have not yet become vested.

                                                                              11
<PAGE>

        5.16 TERMINATION OF EMPLOYMENT IN CONNECTION WITH A CHANGE IN CONTROL.

               (a) Acceleration of Awards. Unless otherwise set forth in an
Award Document, if a Change in Control occurs and provision for Awards is made
as described in part (a) or (b) of Section 5.15 such that a Recipient continues
to own Awards or replacement awards, but in connection with such Change in
Control and without any circumstances that would justify a Just Cause Dismissal
of the Recipient, the Recipient's employment with the Company or an Affiliated
Entity is terminated by the Company or an Affiliated Entity as described in
Section 5.16(b), then, subject to Sections 5.12, 6.1(e), and 6.3(e) and the
terms of any written employment agreement between the Company or any Affiliated
Entity and the Recipient, such Recipient will have the right to exercise or
receive the full benefit of the Recipient's Awards during the applicable time
period provided in Sections 5.12, 6.1(e), and 6.3(e) without regard to any
vesting or performance requirements or other milestones.

               (b) Employment Termination. For purposes of this Section, and
subject to any separate written agreement binding upon the Company, a
Recipient's employment with the Company or any Affiliated Entity will be deemed
to have been terminated in connection with a Change in Control if within two
years of the Change in Control: (i) the Recipient is removed from the
Recipient's employment by, or resigns the Recipient's employment upon the
request of, a Person exercising practical voting control over the Company
following the Change in Control or a person acting upon authority or at the
instruction of such Person; or (ii) the Recipient's position is eliminated as a
result of a reduction in force made to reduce over-capacity or unnecessary
duplication of personnel and the Recipient is not offered a replacement position
with compensation substantially similar to the compensation in effect
immediately before the Change in Control; or (iii) the Recipient terminates
employment because he or she is forced to relocate to a work place more than 50
miles away from his or her work place before the Change in Control. Unless
otherwise provided in a written agreement with the Company or any Affiliated
Entity, assignment of a Recipient to different duties or reporting will not be
deemed to constitute or justify termination of Recipient's employment in
connection with the Change in Control.

                                   ARTICLE VI
                                     AWARDS

        6.1 STOCK OPTIONS.

               (a) Nature of Stock Options. Stock Options granted under this
Plan shall be Nonstatutory Stock Options.

               (b) Option Exercise Price. The exercise price for each Stock
Option will be determined by the Administrator as of the date such Stock Option
is granted. The exercise price may be greater than or less than the Fair Market
Value of the shares of Common Stock subject to the Stock Option as of the date
of grant, provided that in no event may the exercise price per share of Common
Stock be less than the nominal value, if any, per share of the Common Stock
subject to the Stock Option.

                                                                              12
<PAGE>

               (c) Option Period and Vesting. A Stock Option shall become
exercisable, as a whole or in part, on the date or dates specified by the
Administrator and thereafter shall remain exercisable until the earlier of (i)
the date that such Stock Option expires and becomes unexercisable pursuant to
the terms of an Award Document or the terms of this Plan and (ii) the date that
is ten (10) years after the date of grant.

               (d) Exercise of Stock Options. The exercise price for Stock
Options will be paid as set forth in Section 5.3. No Stock Option will be
exercisable except in respect of whole shares, and fractional share interests
shall be disregarded. A Stock Option will be deemed to be exercised when the
individual at the Company designated as its "Stock Plan Administrator" (or other
designated official of the Company) receives written notice of such exercise
from the Recipient in the form of Exhibit A hereto or such other form as the
Company may specify from time to time, together with payment of the exercise
price in accordance with Section 5.3 and any amounts required under Section 5.10
or, with permission of the Administrator, arrangement for such payment.
Notwithstanding any other provision of this Plan, the Administrator may impose,
by rule and/or in Award Documents, such conditions upon the exercise of Stock
Options (including, without limitation, conditions limiting the time of exercise
to specified periods) as may be required to satisfy applicable regulatory
requirements.

               (e) Termination of Employment.

                        (i) Termination for Just Cause. Subject to Section 5.12
and except as otherwise provided in the Award Document or any written agreement
between the Company or an Affiliated Entity and the Recipient, which may be
entered into at any time before or after termination of employment, in the event
of a Just Cause Dismissal of a Recipient all of the Recipient's unexercised
Stock Options, whether or not vested, will expire and become unexercisable as of
the date of such Just Cause Dismissal.

                        (ii) Termination Other Than for Just Cause. Subject to
Section 5.12 and except as otherwise provided in the Award Document or any
written agreement between the Company or an Affiliated Entity and the Recipient,
which may be entered into at any time before or after termination of employment,
if a Recipient's employment with the Company or any Affiliated Entity is
terminated:

                                (A) by the Company or an Affiliated Entity on
account of a Redundancy Termination, then (1) all Stock Options that would have
vested between the date of such termination and December 31st of the year in
which termination occurs shall vest in full and (2) all of the Recipient's
vested Stock Options shall remain exercisable until the earlier of (x) the date
such Stock Options would expire in accordance with their terms and (y) 90 days
after the date of termination of employment. All other unvested Stock Options
shall immediately expire and become unexercisable as of the date of such
termination.

                                (B) by the Company or an Affiliated Entity for
any reason other than Just Cause Dismissal, Redundancy Termination, death,
Retirement or Permanent Disability, then, except as required by applicable law,
(1) all unvested Stock Options shall immediately expire and become unexercisable
on the date of such termination and (2) all vested and unexercised options shall
remain exercisable until the earlier of (x) the date such Stock Options

                                                                              13
<PAGE>

would expire in accordance with their terms and (y) 90 days after the date of
termination of employment.

                                (C) by the Recipient for any reason other than
death, Retirement or Permanent Disability, the Recipient's unexercised Stock
Options that are not vested as of the termination date will expire and become
unexercisable as of the date of termination, and the Recipient's unexercised
Stock Options that are vested as of the date of termination will become
unexercisable as of the earlier of: (1) the date such Stock Options would expire
in accordance with their terms had the Recipient remained employed; and (2) 90
days after the date of termination of employment.

                                (D) due to death, Retirement or Permanent
Disability, the Recipient's unexercised Stock Options will vest in full and will
become unexercisable as of the earlier of: (1) the date such Stock Options would
expire in accordance with their terms had the Recipient remained employed; and
(2) two years after the date of death, Retirement or Permanent Disability.

        6.2 PERFORMANCE AWARDS.

               (a) Grant of Performance Award. The Administrator will determine
in its discretion, subject to applicable law, the performance criteria (which
need not be identical and may be established on an individual or group basis)
governing Performance Awards, the terms thereof, and the form and time of
payment of Performance Awards.

               (b) Payment of Award. Upon satisfaction of the conditions
applicable to a Performance Award, payment will be made to the Recipient in
cash, in shares of Common Stock valued at Fair Market Value as of the date
payment is due, or in a combination of shares of Common Stock and cash, as the
Administrator in its discretion may determine.

        6.3 RESTRICTED STOCK.

               (a) Award of Restricted Stock. The Administrator will determine
the Purchase Price (if any), the terms of payment of the Purchase Price, the
restrictions upon the Restricted Stock, and when such restrictions will lapse.

               (b) Requirements of Restricted Stock. All shares of Restricted
Stock granted or sold pursuant to this Plan will be subject to the following
conditions:

                        (i) No Transfer. The shares of Restricted Stock may not
be sold, assigned, transferred, pledged, hypothecated or otherwise disposed of,
alienated or encumbered until the restrictions are removed or expire;

                        (ii) Certificates. The Administrator may require that
the certificates representing shares of Restricted Stock (if any) granted or
sold to a Recipient remain in the physical custody of an escrow holder or the
Company until all restrictions are removed or expire;

                        (iii) Restrictive Legends. Each certificate (if any)
representing shares of Restricted Stock granted or sold to a Recipient pursuant
to this Plan will bear such legend or

                                                                              14
<PAGE>

legends making reference to the restrictions imposed upon such shares of
Restricted Stock as the Administrator in its discretion deems necessary or
appropriate to enforce such restrictions; and

                        (iv) Other Restrictions. The Administrator may impose
such other conditions on shares of Restricted Stock as the Administrator may
deem advisable, including, without limitation, trading or other restrictions
under any laws or rules of any applicable stock exchange or clearing house
applicable to such securities.

               (c) Lapse of Restrictions. The restrictions imposed upon
Restricted Stock will lapse in accordance with such terms or other conditions as
are determined by the Administrator.

               (d) Rights of Recipient. Subject to the provisions of Section
6.3(b) and any restrictions imposed upon the shares of Restricted Stock, the
Recipient will have all rights of a stockholder with respect to the shares of
Restricted Stock granted or sold to such Recipient under this Plan, including,
without limitation, the right to vote the shares of Restricted Stock and receive
all dividends and other distributions paid or made with respect thereto.

        6.4 STOCK APPRECIATION RIGHTS.

               (a) Granting of Stock Appreciation Rights. The Administrator may
at any time and from time to time approve the grant to Eligible Persons of Stock
Appreciation Rights, related or unrelated to Stock Options.

               (b) Stock Appreciation Rights Related to Options.

                        (i) A Stock Appreciation Right related to a Stock Option
will entitle the holder of the related Stock Option, upon exercise of the Stock
Appreciation Right, to surrender such Stock Option, or any portion thereof to
the extent previously vested but unexercised, with respect to the number of
shares of Common Stock as to which such Stock Appreciation Right is exercised,
and to receive payment of an amount computed pursuant to Section 6.4(b)(iii).
Such Stock Option will, to the extent surrendered, then cease to be exercisable.

                        (ii) A Stock Appreciation Right related to a Stock
Option hereunder will be exercisable at such time or times, and only to the
extent that, the related Stock Option is exercisable, and will not be
transferable except to the extent that such related Stock Option may be
transferable (and under the same conditions), will expire no later than the
expiration of the related Stock Option, and may be exercised only when the
market price of the Common Stock subject to the related Stock Option exceeds the
exercise price of the Stock Option.

                        (iii) Upon the exercise of a Stock Appreciation Right
related to a Stock Option, the Recipient will be entitled to receive payment of
an amount determined by multiplying: (A) the difference obtained by subtracting
the exercise price of a share of Common Stock specified in the related Stock
Option from the Fair Market Value of a share of Common Stock on the date of
exercise of such Stock Appreciation Right (or as of such other date or as of the
occurrence of such event as may have been specified in the instrument evidencing
the grant

                                                                              15
<PAGE>

of the Stock Appreciation Right), by (B) the number of shares as to which such
Stock Appreciation Right is exercised.

               (c) Stock Appreciation Rights Unrelated to Options. The
Administrator may grant Stock Appreciation Rights unrelated to Stock Options.
Section 6.4(b)(iii) will govern the amount payable at exercise under such Stock
Appreciation Right, except that in lieu of an option exercise price the initial
base amount specified in the Award shall be used.

               (d) Limits. Notwithstanding the foregoing, the Administrator, in
its discretion, may place a dollar limitation in such currency as it in its
discretion chooses on the maximum amount that will be payable upon the exercise
of a Stock Appreciation Right.

               (e) Payments. Payment of the amount determined under the
foregoing provisions may be made solely in whole shares of Common Stock valued
at their Fair Market Value on the date of exercise of the Stock Appreciation
Right or, alternatively, at the discretion of the Administrator, in cash (in
such currency as the Administrator in its discretion chooses) or in a
combination of cash and shares of Common Stock as the Administrator deems
advisable. The Administrator has full discretion to determine the form in which
payment of a Stock Appreciation Right will be made and to consent to or
disapprove the election of a Recipient to receive cash in full or partial
settlement of a Stock Appreciation Right. If the Administrator decides to make
full payment in shares of Common Stock, and the amount payable results in a
fractional share, payment for the fractional share will be made in cash.

        6.5 STOCK PAYMENTS. The Administrator may approve Stock Payments to any
Eligible Person on such terms and conditions as the Administrator may determine.
Stock Payments will replace cash compensation at the Fair Market Value of the
Common Stock on the date payment is due.

        6.6 DIVIDEND EQUIVALENTS. The Administrator may grant Dividend
Equivalents to any Recipient who has received a Stock Option, Stock Appreciation
Right or other Award denominated in shares of Common Stock. Dividend Equivalents
may be paid in cash, shares of Common Stock or other Awards; the amount of
Dividend Equivalents paid other than in cash will be determined by the
Administrator by application of such formula as the Administrator may deem
appropriate to translate the cash value of dividends paid to the alternative
form of payment of the Dividend Equivalent. Dividend Equivalents will be
computed as of each dividend record date and will be payable to recipients
thereof at such time as the Administrator may determine.

        6.7 STOCK BONUSES. The Administrator may issue Stock Bonuses to Eligible
Persons on such terms and conditions as the Administrator may determine.

        6.8 STOCK SALES. The Administrator may sell to Eligible Persons shares
of Common Stock on such terms and conditions as the Administrator may determine.

        6.9 OTHER STOCK-BASED BENEFITS. The Administrator is authorized to grant
Other Stock-Based Benefits. Other Stock-Based Benefits are any arrangements
granted under this Plan not otherwise described above that: (a) by their terms
might involve the issuance or sale of shares of Common Stock or other securities
of the Company; or (b) involve a benefit that is measured, as a whole or in
part, by the value, appreciation, dividend yield or other features

                                                                              16
<PAGE>

attributable to a specified number of shares of Common Stock or other securities
of the Company.

                                   ARTICLE VII
                                   DEFINITIONS

        Capitalized terms used in this Plan and not otherwise defined have the
meanings set forth below:

        "ADMINISTRATOR" means the Board as long as no Committee has been
appointed and is in effect and also means the Committee to the extent that the
Board has delegated authority thereto.

        "AFFILIATED ENTITY" means any entity controlled by the Company.

        "APPLICABLE DIVIDEND PERIOD" means (i) the period between the date a
Dividend Equivalent is granted and the date the related Stock Option, Stock
Appreciation Right, or other Award is exercised, terminates, or is converted
into shares of Common Stock, or (ii) such other time as the Administrator may
specify in the written instrument evidencing the grant of the Dividend
Equivalent.

        "ASX" means the Australian Stock Exchange Limited, or the stock market
conducted by it, as the context requires.

        "AWARD" means any Stock Option, Performance Award, Restricted Stock,
Stock Appreciation Right, Stock Payment, Stock Bonus, Stock Sale, Dividend
Equivalent, or Other Stock-Based Benefit granted or sold to a Recipient under
this Plan.

        "AWARD DOCUMENT" means the agreement or confirming memorandum setting
forth the terms and conditions of an Award.

        "BOARD" means the Supervisory Board of the Company.

        "CHANGE IN CONTROL" means the following and shall be deemed to occur if
any of the following events occurs:

                (i) Any Person becomes the beneficial owner (within the meaning
        of applicable securities laws) of 30% or more of either the then
        outstanding shares of Common Stock or the combined voting power of the
        Company's then outstanding securities entitled to vote generally in the
        election of directors; or

               (ii) Individuals who, as of the Effective Date hereof, constitute
        the Board (the "INCUMBENT BOARD"), cease for any reason to constitute at
        least a majority of the Board, provided that any individual who becomes
        a member of the Board after the effective date hereof whose election, or
        nomination for election by the Company's shareholders, is approved by a
        vote of at least a majority of the directors then comprising the
        Incumbent Board shall be considered to be a member of the Incumbent
        Board unless that individual was nominated or elected by any person,
        entity or group (as defined above) having the power to exercise, through
        beneficial ownership, voting agreement and/or proxy, twenty

                                                                              17
<PAGE>

        percent (20%) or more of either the outstanding shares of Common Stock
        or the combined voting power of the Company's then outstanding voting
        securities entitled to vote generally in the election of directors, in
        which case that individual shall not be considered to be a member of the
        Incumbent Board unless such individual's election or nomination for
        election by the Company's shareholders is approved by a vote of at least
        two-thirds of the directors then comprising the Incumbent Board; or

               (iii) Consummation by the Company of the sale or other
        disposition by the Company of all or substantially all of the Company's
        assets or a Reorganization of the Company with any other person,
        corporation or other entity, other than a

                      (A) Reorganization that would result in the voting
        securities of the Company outstanding immediately prior thereto (or, in
        the case of a Reorganization that is preceded or accomplished by an
        acquisition or series of related acquisitions by any Person, by tender
        or exchange offer or otherwise, of voting securities representing 5% or
        more of the combined voting power of all securities of the Company,
        immediately prior to such acquisition or the first acquisition in such
        series of acquisitions) continuing to represent, either by remaining
        outstanding or by being converted into voting securities of another
        entity, more than 50% of the combined voting power of the voting
        securities of the Company or such other entity outstanding immediately
        after such Reorganization (or series of related transactions involving
        such a Reorganization), or

                      (B) Reorganization effected to implement a
        re-capitalization or re-incorporation of the Company (or similar
        transaction) that does not result in a material change in beneficial
        ownership of the voting securities of the Company or its successor; or

               (iv) Resolution of the shareholders of the Company or a court
        order of the competent Dutch court to liquidate the Company or the
        liquidation of the Company on any other ground for liquidation pursuant
        to applicable law.

        "COMMITTEE" means any committee appointed by the Board to administer
this Plan pursuant to Section 4.1.

        "COMMON STOCK" means the common stock of the Company, as constituted at
the moment immediately following the submission of the declaration referred to
in article 52.3 of the Company's articles of association with the chamber of
commerce and industries for Amsterdam, and as thereafter adjusted under Section
3.5. The Administrator, in its discretion, may treat CUFS or American Depository
Shares ("ADSs") evidenced by American Depository Receipts ("ADRs") as equivalent
to and interchangeable with the Common Stock of the Company for the purposes of
this Plan, in the case of ADRs on a proportionately adjusted basis to account
for the ratio of Common Stock in relation to ADRs.

        "COMPANY" means James Hardie Industries N.V., a company incorporated
under the laws of The Netherlands, with its corporate seat in Amsterdam, The
Netherlands.

        "CUFS" means CHESS Units of Foreign Securities as defined in the SCH
Business Rules.

                                                                              18
<PAGE>

        "DISCLOSURE DOCUMENT" has the same meaning as set out in the
Corporations Law.

        "DIVIDEND EQUIVALENT" means a right granted by the Company under Section
6.6 to a holder of a Stock Option, Stock Appreciation Right or other Award
denominated in shares of Common Stock to receive from the Company during the
Applicable Dividend Period payments equivalent to the amount of dividends
payable to holders of the number of shares of Common Stock underlying such Stock
Option, Stock Appreciation Right, or other Award.

        "EFFECTIVE DATE" means September 26, 2001, the date that the Plan was
adopted by the Board.

        "ELIGIBLE PERSON" means employees of the Company or of any Affiliated
Entity, including officers of the Company or of any Affiliated Entity who are
employees of the Company or any Affiliated Entity; provided, however, that any
employee who is also a member of the Managing, Supervisory or Joint Boards of
the Company shall not be an Eligible Person, and provided further, that if any
listing rule of any stock exchange where the Company's securities are listed or
the ASX requires the Company to obtain shareholder approval prior to granting an
Award or issuing any securities to any employee, such an employee is not an
Eligible Person unless and until any such shareholder approval has been
obtained.

        "EXPIRATION DATE" means the tenth (10th) anniversary of the Effective
Date.

        "FAIR MARKET VALUE" as of a particular date means either:

               (i) the market price of a share of the Common Stock determined as
        follows: (A) if the stock is listed on an established stock exchange or
        exchanges (including for this purpose, the Nasdaq National Market), the
        closing price of a share on that trading day on the primary exchange
        upon which the stock trades, as measured by volume, as published in The
        Australian Financial Review or other reputable newspaper circulating in
        the country where the Company's Common Stock is primarily listed, or if
        no sale price was quoted for such date, then as of the next preceding
        date on which such a sale price was quoted, or (B) if the stock is not
        then listed on an established stock exchange, the fair market value as
        determined by the Administrator in good faith on such basis as it deems
        appropriate;

               (ii) the market price of an ADS evidenced by an ADR determined as
        follows: (A) if the ADR is listed on an established exchange or
        exchanges (including for this purpose, the Nasdaq National Market), the
        closing price of the ADR on that trading day on the primary exchange on
        which the ADR trades, as measured by volume, as published in The Wall
        Street Journal or other reputable newspaper circulating in the country
        where the Company's ADRs are primarily listed, or if no sale price was
        quoted for such date, then as of the next preceding date on which the
        sale price was quoted, or (B) if the ADR is not then listed on an
        established stock exchange, the fair market value as determined by the
        Administrator in good faith on such basis as it deems appropriate; or

               (iii) the market price of a single CUFS unit determined as
        follows: (A) if the CUFS are listed on an established exchange or
        exchanges (including for this purpose, the ASX), the arithmetic mean of
        the highest and lowest sale prices of the CUFS or the underlying stock
        for that trading day on the primary exchange on which the CUFS or

                                                                              19
<PAGE>

        underlying stock trade, as measured by volume, as published in The
        Australian Financial Review or other reputable newspaper circulating in
        the country where the Company's CUFS are primarily listed, or if no sale
        price was quoted for such date, then as of the next preceding date on
        which the sale price was quoted, or (B) if the CUFS or underlying stock
        are not then listed on an established stock exchange, the fair market
        value as determined by the Administrator in good faith on such basis as
        it deems appropriate.

        "JUST CAUSE DISMISSAL" means a termination of a Recipient's employment
for any of the following reasons: (i) the refusal of the Recipient to carry out
reasonable directions provided to the Recipient by the Board, the President or
Chief Executive Officer of the Company, or any other person who has the
authority to so direct the Recipient; (ii) the commission of a grossly negligent
act by the Recipient in the performance of his or her duties which injures the
Company; (iii) the commission of theft from the Company by the Recipient; (iv) a
material violation of any policy of the Company which injures the Company; (v)
the conviction of the Recipient of violating a criminal law that involves the
commission of a felony or other crime that involves moral turpitude; (vi) the
performance of services by the Recipient for any other person or entity that, in
the judgment of the Chief Executive Officer of the Company or other senior
executive officer designated by the Administrator, competes with the Company or
an Affiliated Entity, or is otherwise prejudicial to or in conflict with the
business or interests of the Company or its Affiliated Entities, while the
Recipient is employed by the Company and without the prior written approval of
the Chief Executive Officer of the Company.

        "NONSTATUTORY STOCK OPTION" means a regular Stock Option that is not
covered by special tax or other regulatory provisions.

        "OTHER STOCK-BASED BENEFITS" means an Award granted under Section 6.9.

        "PERFORMANCE AWARD" means an Award under Section 6.2, payable in cash,
shares of Common Stock or a combination thereof, that vests and becomes payable
over a period of time upon attainment of individual performance criteria or
other criteria tied to the performance of the Company, any Affiliated Entity, or
any part of the Company or any Affiliated Entity, established in connection with
the grant of the Award, which may include satisfactory completion of a specified
period of employment service.

        "PERMANENT DISABILITY" means that the Recipient becomes physically or
mentally incapacitated or disabled so that the Recipient is unable to perform
substantially the same services as the Recipient performed prior to incurring
such incapacity or disability (the Company, at its option and expense, being
entitled to retain a physician to confirm the existence of such incapacity or
disability, and the determination of such physician to be binding upon the
Company and the Recipient), and such incapacity or disability continues for a
period of three consecutive months or six months in any 12-month period or such
other period(s) as may be determined by the Administrator with respect to any
Award.

        "PERSON" means any person, entity or group, within the meaning ascribed
to by relevant security laws, but excluding (i) the Company and its
subsidiaries, (ii) any depositary for the CUFS or ADRs, (iii) any employee stock
ownership or other employee benefit plan maintained

                                                                              20
<PAGE>

by the Company and (iv) an underwriter or underwriting syndicate that has
acquired the Company's securities solely in connection with a public offering
thereof.

        "PLAN" means the 2001 Equity Incentive Plan of the Company, as amended
from time to time.

        "PLAN TERM" means the period during which this Plan remains in effect
(commencing the Effective Date and ending on the Expiration Date).

        "PURCHASE PRICE" means the purchase price (if any) to be paid by a
Recipient for Restricted Stock as determined by the Administrator (which price
shall be at least equal to the minimum price required under applicable laws and
regulations for the issuance of shares of Common Stock which is nontransferable
and subject to a substantial risk of forfeiture until specific conditions are
met).

        "RECIPIENT" means an employee, including an officer, who has received an
Award under this Plan.

        "REDUNDANCY TERMINATION" means termination of a Recipient's employment
as a result of the elimination of a Recipient's position or as part of a
reduction of force that is not related to the performance of the Recipient.

        "REORGANIZATION" means any merger, consolidation or other
reorganization.

        "RESTRICTED STOCK" means Common Stock or CUFS issued in respect of such
stock that is the subject of an Award made under Section 6.3 and that is
nontransferable and subject to a substantial risk of forfeiture until specific
conditions are met, as set forth in this Plan and in any statement evidencing
the grant of such Award.

        "RETIREMENT" of a Recipient means the Recipient's resignation from the
Company or any Affiliated Entity after reaching age 62 and at least five years
of full-time employment by the Company or any Affiliated Entity, without any
circumstances that would justify a Just Cause Dismissal of the Recipient.

        "STOCK APPRECIATION RIGHT" means a right granted under Section 6.4 to
receive a payment that is measured with reference to the amount by which the
Fair Market Value of a specified number of shares of Common Stock appreciates
from a specified date, such as the date of grant of the Stock Appreciation
Right, to the date of exercise.

        "STOCK BONUS" means an issuance or delivery of unrestricted or
restricted shares of Common Stock under Section 6.7 as a bonus for services
rendered or for any other valid consideration under applicable law.

        "STOCK PAYMENT" means a payment in shares of Common Stock under Section
6.5 to replace all or any portion of the compensation or other payment that
would otherwise become payable to the Recipient in cash.

        "STOCK OPTION" means a right to purchase shares of Common Stock granted
under Section 6.1 of this Plan.

                                                                              21

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