Document:

REGISTRATION
      RIGHTS AGREEMENT

     

    

     

    REGISTRATION
      RIGHTS AGREEMENT
      (this
      "Agreement"),
      dated
      as of June 11, 2007, by and among Composite Technology Corporation, a Nevada
      corporation (the "Company"),
      and
      the undersigned buyers (each, a "Buyer",
      and
      collectively, the "Buyers").

     

    WHEREAS:

     

    A. In
      connection with the Securities Purchase Agreement by and among the parties
      hereto dated June 11, 2007 (the "Securities
      Purchase Agreement"),
      the
      Company, has agreed, upon the terms and subject to the conditions set forth
      in
      the Securities Purchase Agreement, to issue and sell to each Buyer Units (the
      “Units”)
      of the
      Company with each Unit comprised of one share of the Company’s common stock, par
      value $0.001 per share (the “Common
      Stock”),
      and
      1/4th
      of a
      warrant (the “Warrants”)
      to
      purchase one share of Common Stock (as exercised, collectively, the
“Warrant
      Shares”).

     

    B. To
      induce
      the Buyers to execute and deliver the Securities Purchase Agreement, the Company
      has agreed to provide certain registration rights under the Securities Act
      of
      1933, as amended, and the rules and regulations thereunder, or any similar
      successor statute (collectively, the "1933
      Act"),
      and
      applicable state securities laws.

     

    NOW,
      THEREFORE,
      in
      consideration of the premises and the mutual covenants contained herein and
      other good and valuable consideration, the receipt and sufficiency of which
      are
      hereby acknowledged, the Company and each of the Buyers hereby agree as
      follows:

     

    1. Definitions.
      

     

    Capitalized
      terms used herein and not otherwise defined herein shall have the respective
      meanings set forth in the Securities Purchase Agreement. As used in this
      Agreement, the following terms shall have the following meanings:

     

    a. "Business
      Day"
      means
      any day other than Saturday, Sunday or any other day on which commercial banks
      in the City of New York are authorized or required by law to remain
      closed.

     

    b. "Closing
      Date"
      shall
      have the meaning set forth in the Securities Purchase Agreement.

     

    c. "Effective
      Date"
      means
      the date the Registration Statement has been declared effective by the
      SEC.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    d. "Effectiveness
      Deadline"
      means,
      with respect to the First Registration Statement, the date which is 90 days
      after the Filing Deadline of the First Registration Statement, or if there
      is a
      review of such Registration Statement by the SEC, 120 days after the Filing
      Deadline of the First Registration Statement; and, with respect to the Second
      Registration Statement, the date which is 90 days after the Filing Deadline
      of
      the Second Registration Statement, or if there is a review of such Registration
      Statement by the SEC, 120 days after the Filing Deadline of the Second
      Registration Statement;

     

    e. “Eligible
      Market”
means
      the Principal Market, The New York Stock Exchange, Inc., the American Stock
      Exchange, the Nasdaq National Market or The Nasdaq Capital Market. 

     

    f. "Filing
      Date"
      means
      the date the applicable Registration Statement has been filed with the SEC.
      

     

    g. "Filing
      Deadline"
      means,
      with respect to the First Registration Statement, 30 Business Days after the
      date hereof; and with respect to the Second Registration Statement, no more
      than
      15 Business Days after the First Registration Statement has been declared
      effective.

     

    h. "Investor"
      means a
      Buyer or any transferee or assignee thereof to whom a Buyer assigns its rights
      under this Agreement and who agrees to become bound by the provisions of this
      Agreement in accordance with Section 9 and any transferee or assignee thereof
      to
      whom a transferee or assignee assigns its rights under this Agreement and who
      agrees to become bound by the provisions of this Agreement in accordance with
      Section 9.

     

    i. "Person"
      means
      an individual, a limited liability company, a partnership, a joint venture,
      a
      corporation, a trust, an unincorporated organization and a government or any
      department or agency thereof.

     

    j. “Principal
      Market”
means
      the OTC Bulletin Board.

     

    k. "register,"
      "registered,"
      and
      "registration"
      refer
      to a registration effected by preparing and filing one or more Registration
      Statements (as defined below) in compliance with the 1933 Act and pursuant
      to
      Rule 415 and the declaration or ordering of effectiveness of such Registration
      Statement(s) by the SEC.

     

    l. "Registrable
      Securities"
      means
      (i) the Common Stock, (ii) the Warrant Shares issued or issuable upon
      exercise of the Warrants, and (iii) any shares of capital stock of the Company
      issued or issuable with respect to the Warrant Shares and the Warrants as a
      result of any stock split, stock dividend, recapitalization, exchange or similar
      event or otherwise, without regard to any limitations on exercises of the
      Warrants.

     

    m. "Registration
      Statement"
      means a
      registration statement or registration statements of the Company filed under
      the
      1933 Act covering the Registrable Securities.

     

    n. "Required
      Holders"
      means
      the holders of at least a majority of the Registrable Securities.

     

    
      
         

      

      
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    o. "Required
      Registration Amount"
      for the
      Registration Statement means the sum of (i) 100% of the number of Common Stock
      as of the trading day immediately preceding the applicable date of
      determination, and (ii) 100% the number of Warrant Shares issued and issuable
      pursuant to the Warrants as of the trading day immediately preceding the
      applicable date of determination, all subject to adjustment as provided in
      Section 2(b), without regard to any limitations on exercise of the Warrants;
      provided, however, that the 100% of the number of Warrant Shares shall be
      reduced to the extent necessary in the event the SEC will not declare the
      Registration Statement effective without such reduction.

     

    p."Rule
      415"
      means
      Rule 415 under the 1933 Act or any successor rule providing for offering
      securities on a continuous or delayed basis.

     

    q. "SEC"
      means
      the United States Securities and Exchange Commission.

     

    2. Registration.

     

    a. Mandatory
      Registration.
      

     

    (i)
      First Registration Statement.
      The
      Company shall prepare, and, as soon as practicable but in no event later than
      the Filing Deadline, file with the SEC a Registration Statement on Form S-1
      or
      Form S-3 covering the resale of all of the Registrable Securities (excluding
      the
      Warrant Shares), all of which shall constitute Common Stock (“First
      Registration Statement”).
      In
      the event that Form S-1 or Form S-3 is unavailable for such a registration,
      the
      Company shall use such other form as is available for such a registration on
      another appropriate form reasonably acceptable to the Required Holders, subject
      to the provisions of Section 2(d).

     

    (ii)
      Second
      Registration Statement.
      Promptly after the First Registration Statement has been declared effective
      by
      the Securities and Exchange Commission, the Company shall prepare, and, as
      soon
      as practicable but in no event later than the Filing Deadline, file with the
      SEC
      the Registration Statement on Form S-1 or Form S-3 covering the resale of the
      Warrant Shares and the balance of the Required Registration Amount, if any.
      In
      the event that Form S-1 or Form S-3 is unavailable for such a registration,
      the
      Company shall use such other form as is available for such a registration on
      another appropriate form reasonably acceptable to the Required Holders, subject
      to the provisions of Section 2(d). 

     

    (iii)
      Both Registration Statements shall contain (except if otherwise directed by
      the
      Required Holders) the “Plan
      of Distribution”
section
      in substantially the form attached hereto as Exhibit
      A.
      The
      Company shall use its best efforts to have the Registration Statement declared
      effective by the SEC as soon as practicable, but in no event later than sooner
      of the Effectiveness Deadline or within three (3) Business Days of receipt
      by
      the Company of a written or oral communication from the SEC that the
      Registration Statement will not be reviewed or that the SEC has no further
      comments. The Company shall cause such Registration Statements to remain
      effective during the Registration Period. 

     

    
      
         

      

      
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    b. Sufficient
      Number of Shares Registered.
      In the
      event the number of shares available under a Registration Statement filed
      pursuant to Section 2(a) is insufficient to cover all of the Registrable
      Securities required under Section 2(a)(ii) to be covered by such Registration
      Statement, the Company shall amend the applicable Registration Statement, or
      file a new Registration Statement, or both, so as to cover at least the Required
      Registration Amount as of the trading day immediately preceding the date of
      the
      filing of such amendment or new Registration Statement, in each case, as soon
      as
      practicable, but in any event not later than thirty (30) days after the
      necessity therefor arises. The Company shall use its best efforts to cause
      such
      amendment and/or new Registration Statement to become effective as soon as
      practicable following the filing thereof, but no later than three (3) Business
      Days of receipt by the Company of a written or oral communication from the
      SEC
      that such Registration Statement will not be reviewed or that the SEC has no
      further comments. For purposes of the foregoing provision, the number of shares
      available under a Registration Statement shall be deemed “insufficient to cover
      all of the Registrable Securities” if at any time the number of shares of Common
      Stock available for resale under the Registration Statement is less than the
      Required Registration Amount. 

     

    c. Effect
      of Failure to File and Obtain and Maintain Effectiveness of Registration
      Statement.
      If (i)
      a Registration Statement covering all of the Registrable Securities required
      to
      be covered thereby (as determined on the date of this Agreement) and required
      to
      be filed by the Company pursuant to Section 2(a) or (b) of this Agreement is
      (A)
      not filed with the SEC on or before the Filing Deadline (a "Filing
      Failure")
      or (B)
      not declared effective by the SEC on or before the earlier of (x) the
      Effectiveness Deadline or (y) three (3) Business Days of receipt by the Company
      of a written or oral communication from the SEC that the Registration Statement
      will not be reviewed or that the SEC has no further comments (an "Effectiveness
      Failure")
      or (C)
      the Company does not file a request for acceleration of effectiveness of such
      Registration Statement to a time and date not later than 48 hours after the
      submission of such request within two (2) Business Days after the Company learns
      that no review of a particular Registration Statement will be made by the staff
      of the SEC or that the staff has no further comments on a particular
      Registration Statement and the National Association of Securities Dealers,
      Inc.
      (the “NASD”)
      shall
      have cleared such Registration Statement pursuant to the Rule 2710 of the NASD,
      (ii) on any day after the Effective Date and before the Termination Date, sales
      of all of the Registrable Securities required to be included on such
      Registration Statement cannot be made (other than during a Grace Period (as
      defined in Section 3(l)) pursuant to such Registration Statement (including,
      without limitation, because of a failure to keep such Registration Statement
      effective, to disclose such information as is necessary for sales to be made
      pursuant to such Registration Statement or to register a sufficient number
      of
      shares of Common Stock) (a "Maintenance
      Failure")
      then,
      as partial relief for the damages to any holder by reason of any such delay
      in
      or reduction of its ability to sell the underlying shares of Common Stock (which
      remedy shall not be exclusive of any other remedies available at law or in
      equity), the Company shall pay to each holder of Registrable Securities relating
      to such Registration Statement an amount in cash equal to one percent (1.0%)
      of
      the Purchase Amount of such Investor's unregistered Registrable Securities
      (“Purchase Amount”), the Registrable Securities attributable to which are
      required to be included in such Registration Statement on each of the following
      dates: (i) the day of a Filing Failure and on every thirtieth day after a Filing
      Failure until such Filing Failure is cured; (ii) the day of an Effectiveness
      Failure and on every thirtieth day after an Effectiveness Failure until such
      Effectiveness Failure is cured; and (iii) the initial day of a Maintenance
      Failure and on every thirtieth day (or partial period) after a Maintenance
      Failure until such Maintenance Failure is cured; provided,
      however,
      the
      aggregate amount of Registration Delay Payments shall not exceed twelve percent
      (12%) of such Purchase Amount; provided,
      further,
      that
      amounts payable as Registration Delay Payments shall cease when the Investor
      no
      longer holds any Common Stock and Warrants or in the event the Investor’s Common
      Stock or Warrant Shares can be immediately sold by the Investor in reliance
      on
      Rule 144(k) without any volume restrictions and the Company has removed legends
      restricting resale from the Warrant Shares and the Common Stock.
      The
      payments to which a holder shall be entitled pursuant to this Section 2(c)
      are
      referred to herein as "Registration
      Delay Payments."
      

     

    
      
         

      

      
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    d. Piggyback
      Registration.
      After
      the date hereof, if the Company proposes to register (including for this purpose
      a registration statement effected by the Company for stockholders ) any of
      its
      stock or other securities under the 1933 Act (other than a registration relating
      solely to the sale of securities to participants in a Company employee stock
      or
      similar plan on Form S-8 and an exchange registration on Form S-4), the Company
      shall, at such time, promptly give each holder of Registrable Securities written
      notice of such registration. Upon the written request of each holder of
      Registrable Securities given within twenty (20) days after mailing of such
      notice by the Company, the Company shall, cause in such registration to be
      registered under the 1933 Act all of the Registrable Securities that each such
      holder has requested to be registered. 

     

    3. Related
      Obligations.

     

    At
      such
      time as the Company is obligated to file a Registration Statement with the
      SEC
      pursuant to Section 2(a), the Company will use its best efforts to effect the
      registration of the Registrable Securities in accordance with the intended
      method of disposition thereof and, pursuant thereto, the Company shall have
      the
      following obligations:

     

    a. The
      Company shall submit to the SEC, within two (2) Business Days after the Company
      learns that no review of a particular Registration Statement will be made by
      the
      staff of the SEC or that the staff has no further comments on a particular
      Registration Statement, as the case may be, a request for acceleration of
      effectiveness of such Registration Statement to a time and date not later than
      48 hours after the submission of such request. The Company shall keep each
      Registration Statement effective pursuant to Rule 415 at all times until the
      earlier of (i) the date as of which the Investors may sell all of the
      Registrable Securities covered by such Registration Statement without
      restriction pursuant to Rule 144(k) (or any successor thereto) promulgated
      under
      the 1933 Act or (ii) the date on which the Investors shall have sold all of
      the
      Registrable Securities covered by such Registration Statement (the "Registration
      Period").
      The
      Company shall ensure that each Registration Statement (including any amendments
      or supplements thereto and prospectuses contained therein) shall not contain
      any
      untrue statement of a material fact or omit to state a material fact required
      to
      be stated therein, or necessary to make the statements therein (in the case
      of
      prospectuses, in the light of the circumstances in which they were made) not
      misleading.

     

    b. The
      Company shall prepare and file (electronically on EDGAR) with the SEC such
      amendments (including post-effective amendments) and supplements to a
      Registration Statement and the prospectus used in connection with such
      Registration Statement, which prospectus is to be filed pursuant to Rule 424
      promulgated under the 1933 Act, as may be necessary to keep such Registration
      Statement effective at all times during the Registration Period, and, during
      such period, comply with the provisions of the 1933 Act with respect to the
      disposition of all Registrable Securities of the Company covered by such
      Registration Statement until such time as all of such Registrable Securities
      shall have been disposed of in accordance with the intended methods of
      disposition by the seller or sellers thereof as set forth in such Registration
      Statement. 

     

    
      
         

      

      
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    c. Provide
      copies to and permit counsel designated by the Investors to review each
      Registration Statement and all amendments and supplements thereto prior to
      their
      filing with the SEC and not file any document to which such counsel reasonably
      objects.

     

    d. Upon
      reasonable request, the Company shall furnish to the Investors and their legal
      counsel, without charge, (i) copies of any correspondence from the SEC or the
      staff of the SEC to the Company or its representatives relating to any
      Registration Statement, (ii) promptly after the same is prepared and filed
      with
      the SEC, one copy of any Registration Statement and any amendment(s) thereto,
      including financial statements and schedules, all documents incorporated therein
      by reference, if requested by an Investor, and all exhibits and (iii) upon
      the
      effectiveness of any Registration Statement, one copy of the prospectus included
      in such Registration Statement and all amendments and supplements thereto.
      

     

    e. Upon
      request, the Company shall furnish to each Investor whose Registrable Securities
      are included in any Registration Statement, without charge, (i) promptly after
      the same is prepared and filed with the SEC, at least one copy of such
      Registration Statement and any amendment(s) thereto, including financial
      statements and schedules, all documents incorporated therein by reference,
      if
      requested by an Investor, all exhibits and each preliminary prospectus, (ii)
      upon the effectiveness of any Registration Statement, ten (10) copies of the
      prospectus included in such Registration Statement and all amendments and
      supplements thereto (or such other number of copies as such Investor may
      reasonably request) and (iii) such other documents, including copies of any
      preliminary or final prospectus, as such Investor may reasonably request from
      time to time in order to facilitate the disposition of the Registrable
      Securities owned by such Investor.

     

    f. The
      Company shall notify each Investor in writing of the happening of any event,
      as
      promptly as practicable after becoming aware of such event, as a result of
      which
      the prospectus included in a Registration Statement, as then in effect, includes
      an untrue statement of a material fact or omission to state a material fact
      required to be stated therein or necessary to make the statements therein,
      in
      the light of the circumstances under which they were made, not misleading
      (provided that in no event shall such notice contain any material, nonpublic
      information), and, promptly prepare a supplement or amendment to such
      Registration Statement to correct such untrue statement or omission.

     

    g. The
      Company shall use its best efforts to prevent the issuance of any stop order
      or
      other suspension of effectiveness of a Registration Statement, or the suspension
      of the qualification of any of the Registrable Securities for sale in any
      jurisdiction and, if such an order or suspension is issued, to obtain the
      withdrawal of such order or suspension at the earliest possible moment and
      to
      notify each Investor who holds Registrable Securities being sold of the issuance
      of such order and the resolution thereof or its receipt of actual notice of
      the
      initiation or threat of any proceeding for such purpose. The Company shall
      notify each Investor of a pending proceeding against the Company under Section
      8A of the Securities Act in connection with the offering of the Registrable
      Securities.

     

    
      
         

      

      
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    h. The
      Company shall use its best efforts to maintain the authorization for quotation
      of the Company's Common Stock on the Principal Market or any Eligible
      Market.

     

    i. The
      Company shall cooperate with the Investors who hold Registrable Securities
      being
      offered and, to the extent applicable, facilitate the timely preparation and
      delivery of certificates (not bearing any restrictive legend) representing
      the
      Registrable Securities to be offered pursuant to a Registration Statement and
      enable such certificates to be in such denominations or amounts, as the case
      may
      be, as the Investors may reasonably request and registered in such names as
      the
      Investors may request.

     

    j. The
      Company shall use its best efforts to cause the Registrable Securities covered
      by a Registration Statement to be registered with or approved by such other
      governmental agencies or authorities as may be necessary to consummate the
      disposition of such Registrable Securities.

     

    k. The
      Company shall otherwise use its best efforts to comply with all applicable
      rules
      and regulations of the SEC in connection with any registration
      hereunder.

     

    l. Notwithstanding
      anything to the contrary herein, at any time after the Effective Date, for
      not
      more than twenty (20) consecutive days or for a total of not more than
      forty-five (45) days in any twelve (12) month period, the Company may delay
      the
      disclosure of material, non-public information concerning the Company (A) the
      disclosure of which at the time is not, in the good faith opinion of the Board
      of Directors of the Company and its outside legal counsel, in the best interest
      of the Company and, in the opinion of counsel to the Company, otherwise required
      or (B) to the extent the Company is required to file a post-effective amendment
      to the Registration Statement (a "Grace
      Period");
      provided, that the Company shall promptly (a) notify the Investors in writing
      of
      the existence of (but in no event, without the prior written consent of a
      Investor, shall the Company disclose to such Investor any of the facts or
      circumstances regarding) material non-public information giving rise to a Grace
      Period, (b) advise the Investors in writing to cease all sales under the
      Registration Statement until the end of the Grace Period and (c) use
      commercially reasonable efforts to terminate a Grace Period as promptly as
      practicable.

     

    4. Obligations
      of the Investors.

     

    a. At
      least
      four (4) Business Days prior to the first anticipated filing date of a
      Registration Statement, the Company shall notify each Investor in writing of
      the
      information the Company requires from each such Investor if such Investor elects
      to have any of such Investor's Registrable Securities included in such
      Registration Statement. It shall be a condition precedent to the obligations
      of
      the Company to complete the registration pursuant to this Agreement with respect
      to the Registrable Securities of a particular Investor that such Investor shall
      furnish to the Company such information regarding itself, the Registrable
      Securities held by it and the intended method of disposition of the Registrable
      Securities held by it as shall be reasonably required to effect the
      effectiveness of the registration of such Registrable Securities and shall
      execute such documents in connection with such registration as the Company
      may
      reasonably request. 

     

    
      
         

      

      
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    b. Each
      Investor, by such Investor's acceptance of the Registrable Securities, agrees
      to
      cooperate with the Company as reasonably requested by the Company in connection
      with the preparation and filing of any Registration Statement hereunder, unless
      such Investor has notified the Company in writing of such Investor's election
      to
      exclude all of such Investor's Registrable Securities from such Registration
      Statement.

     

    c. Each
      Investor agrees that, upon receipt of any notice from the Company of the
      happening of any event of the kind described in Section 3(f) or 3(g), such
      Investor will immediately discontinue disposition of Registrable Securities
      pursuant to any Registration Statement(s) covering such Registrable Securities
      until such Investor's receipt of the copies of the supplemented or amended
      prospectus or receipt of notice that no supplement or amendment is required.
      

     

    d. Each
      Investor covenants and agrees that it will comply with the prospectus delivery
      requirements of the 1933 Act as applicable to it or an exemption therefrom
      in
      connection with sales of Registrable
      Securities pursuant to the Registration Statement.

     

    5. Expenses
      of Registration.

     

    All
      reasonable expenses, other than underwriting discounts and commissions, incurred
      in connection with registrations, filings or qualifications pursuant to Sections
      2 and 3, including, without limitation, (i) all registration, listing and
      qualifications fees, printers and accounting fees, and fees and disbursements
      of
      legal counsel for the Company, and (ii) the fees and disbursements up to but
      not
      in excess of $5,000, of one legal counsel for the Investors, shall be paid
      by
      the Company. 

     

    6. Indemnification.

     

    In
      the
      event any Registrable Securities are included in a Registration Statement under
      this Agreement:

     

    
      
         

      

      
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    a. To
      the
      fullest extent permitted by law, the Company will, and hereby does, indemnify,
      hold harmless and defend each Investor, the directors, officers, members,
      partners, employees, agents, representatives of, and each Person, if any, who
      controls any Investor within the meaning of the 1933 Act or the 1934 Act (each,
      an "Indemnified
      Person"),
      against any losses, claims, damages, liabilities, judgments, fines, penalties,
      charges, costs, reasonable attorneys' fees, amounts paid in settlement or
      expenses, joint or several, (collectively, "Claims")
      incurred in investigating, preparing or defending any action, claim, suit,
      inquiry, proceeding, investigation or appeal taken from the foregoing by or
      before any court or governmental, administrative or other regulatory agency,
      body or the SEC, whether pending or threatened, whether or not an indemnified
      party is or may be a party thereto ("Indemnified
      Damages"),
      to
      which any of them may become subject insofar as such Claims (or actions or
      proceedings, whether commenced or threatened, in respect thereof) arise out
      of
      or are based upon: (i) any untrue statement or alleged untrue statement of
      a
      material fact in a Registration Statement or any post-effective amendment
      thereto or in any filing made in connection with the qualification of the
      offering under the securities or other "blue sky" laws of any jurisdiction
      in
      which Registrable Securities are offered ("Blue
      Sky Filing"),
      or
      the omission or alleged omission to state a material fact required to be stated
      therein or necessary to make the statements therein not misleading, (ii) any
      untrue statement or alleged untrue statement of a material fact contained in
      any
      preliminary prospectus if used prior to the effective date of such Registration
      Statement, or contained in the final prospectus (as amended or supplemented,
      if
      the Company files any amendment thereof or supplement thereto with the SEC)
      or
      the omission or alleged omission to state therein any material fact necessary
      to
      make the statements made therein, in the light of the circumstances under which
      the statements therein were made, not misleading, (iii) any violation or alleged
      violation by the Company of the 1933 Act, the 1934 Act, any other law,
      including, without limitation, any state securities law, or any rule or
      regulation thereunder relating to the offer or sale of the Registrable
      Securities pursuant to a Registration Statement or (iv) any violation of this
      Agreement (the matters in the foregoing clauses (i) through (iv) being,
      collectively, "Violations").
      Subject to Section 6(c), the Company shall reimburse the Indemnified Persons,
      promptly as such expenses are incurred and are due and payable, for any legal
      fees or other reasonable expenses incurred by them in connection with
      investigating or defending any such Claim. Notwithstanding anything to the
      contrary contained herein, the indemnification agreement contained in this
      Section 6(a): (i) shall not apply to a Claim by an Indemnified Person arising
      out of or based upon a Violation which occurs in reliance upon and in conformity
      with information furnished in writing to the Company by such Indemnified Person
      for such Indemnified Person expressly for use in connection with the preparation
      of the Registration Statement or any such amendment thereof or supplement
      thereto, if such prospectus was timely made available by the Company pursuant
      to
      Section 3(e) and (ii) shall not apply to amounts paid in settlement of any
      Claim
      if such settlement is effected without the prior written consent of the Company,
      which consent shall not be unreasonably withheld or delayed. Such indemnity
      shall remain in full force and effect regardless of any investigation made
      by or
      on behalf of the Indemnified Person and shall survive the transfer of the
      Registrable Securities by the Investors pursuant to Section 9.

     

    
      
         

      

      
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    b. In
      connection with any Registration Statement in which an Investor is
      participating, each such Investor agrees to severally and not jointly indemnify,
      hold harmless and defend, to the same extent and in the same manner as is set
      forth in Section 6(a), the Company, each of its directors, each of its officers
      who signs the Registration Statement and each Person, if any, who controls
      the
      Company within the meaning of the 1933 Act or the 1934 Act (each, an
      "Indemnified
      Party"),
      against any Claim or Indemnified Damages to which any of them may become
      subject, under the 1933 Act, the 1934 Act or otherwise, insofar as such Claim
      or
      Indemnified Damages arise out of or are based upon any Violation, in each case
      to the extent, and only to the extent, that such Violation occurs in reliance
      upon and in conformity with written information furnished to the Company by
      such
      Investor expressly for use in connection with such Registration Statement;
      and,
      subject to Section 6(c), such Investor will reimburse any legal or other
      expenses reasonably incurred by an Indemnified Party in connection with
      investigating or defending any such Claim; provided, however, that the indemnity
      agreement contained in this Section 6(b) and the agreement with respect to
      contribution contained in Section 7 shall not apply to amounts paid in
      settlement of any Claim if such settlement is effected without the prior written
      consent of such Investor, which consent shall not be unreasonably withheld
      or
      delayed; provided, further, however, that the Investor shall be liable under
      this Section 6(b) for only that amount of a Claim or Indemnified Damages as
      does
      not exceed the gross proceeds to such Investor as a result of the sale of
      Registrable Securities pursuant to such Registration Statement. Such indemnity
      shall remain in full force and effect regardless of any investigation made
      by or
      on behalf of such Indemnified Party and shall survive the transfer of the
      Registrable Securities by the Investors pursuant to Section 9. Notwithstanding
      anything to the contrary contained herein, the indemnification agreement
      contained in this Section 6(b) with respect to any preliminary prospectus shall
      not inure to the benefit of any Indemnified Party if the untrue statement or
      omission of material fact contained in the preliminary prospectus was corrected
      on a timely basis in the prospectus, as then amended or
      supplemented.

     

    c. Promptly
      after receipt by an Indemnified Person or Indemnified Party under this Section
      6
      of notice of the commencement of any action or proceeding (including any
      governmental action or proceeding) involving a Claim, such Indemnified Person
      or
      Indemnified Party shall, if a Claim in respect thereof is to be made against
      any
      indemnifying party under this Section 6, deliver to the indemnifying party
      a
      written notice of the commencement thereof, and the indemnifying party shall
      have the right to participate in, and, to the extent the indemnifying party
      so
      desires, jointly with any other indemnifying party similarly noticed, to assume
      control of the defense thereof with counsel mutually satisfactory to the
      indemnifying party and the Indemnified Person or the Indemnified Party, as
      the
      case may be; provided, however, that an Indemnified Person or Indemnified Party
      shall have the right to retain its own legal counsel at the expense of such
      Indemnified Person or Indemnified Party. The Indemnified Party or Indemnified
      Person shall cooperate fully with the indemnifying party in connection with
      any
      negotiation or defense of any such action or Claim by the indemnifying party
      and
      shall furnish to the indemnifying party all information reasonably available
      to
      the Indemnified Party or Indemnified Person which relates to such action or
      Claim. The indemnifying party shall keep the Indemnified Party or Indemnified
      Person reasonably apprised at all times as to the status of the defense or
      any
      settlement negotiations with respect thereto. No indemnifying party shall be
      liable for any settlement of any action, claim or proceeding effected without
      its prior written consent, provided, however, that the indemnifying party shall
      not unreasonably withhold, delay or condition its consent. No indemnifying
      party
      shall, without the prior written consent of the Indemnified Party or Indemnified
      Person, consent to entry of any judgment or enter into any settlement or other
      compromise which does not include as an unconditional term thereof the giving
      by
      the claimant or plaintiff to such Indemnified Party or Indemnified Person of
      a
      release from all liability in respect to such Claim or litigation, and such
      settlement shall not include any admission as to fault on the part of the
      Indemnified Party. Following indemnification as provided for hereunder, the
      indemnifying party shall be subrogated to all rights of the Indemnified Party
      or
      Indemnified Person with respect to all third parties, firms or corporations
      relating to the matter for which indemnification has been made. The failure
      to
      deliver written notice to the indemnifying party within a reasonable time of
      the
      commencement of any such action shall not relieve such indemnifying party of
      any
      liability to the Indemnified Person or Indemnified Party under this Section
      6,
      except to the extent that the indemnifying party is prejudiced in its ability
      to
      defend such action.

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

     

    d. The
      indemnification required by this Section 6 shall be made by periodic payments
      of
      the amount thereof during the course of the investigation or defense, as and
      when bills are received or Indemnified Damages are incurred.

     

    e. The
      indemnity agreements contained herein shall be in addition to (i) any cause
      of
      action or similar right of the Indemnified Party or Indemnified Person against
      the indemnifying party or others, and (ii) any liabilities the indemnifying
      party may be subject to pursuant to the law.

     

    7. Contribution.

     

    To
      the
      extent any indemnification by an indemnifying party is prohibited or limited
      by
      law, the indemnifying party agrees to make the maximum contribution with respect
      to any amounts for which it would otherwise be liable under Section 6 to the
      fullest extent permitted by law; provided, however, that: (i) no Person involved
      in the sale of Registrable Securities which Person is guilty of fraudulent
      misrepresentation (within the meaning of Section 11(f) of the 1933 Act) in
      connection with such sale shall be entitled to contribution from any Person
      involved in such sale of Registrable Securities who was not guilty of fraudulent
      misrepresentation; and (ii) contribution by any seller of Registrable Securities
      shall be limited in amount to the net amount of proceeds received by such seller
      from the sale of such Registrable Securities pursuant to such Registration
      Statement.

     

    8. Reports
      Under the 1934 Act.
      

     

    With
      a
      view to making available to the Investors the benefits of Rule 144 promulgated
      under the 1933 Act or any other similar rule or regulation of the SEC that
      may
      at any time permit the Investors to sell securities of the Company to the public
      without registration ("Rule
      144"),
      the
      Company agrees to:

     

    a. make
      and
      keep public information available, as those terms are understood and defined
      in
      Rule 144;

     

    b. file
      with
      the SEC all reports and other documents required of the Company under the 1933
      Act and the 1934 Act so long as the Company remains subject to such requirements
      and the filing of such reports and other documents is required for the
      applicable provisions of Rule 144; and

     

    c. furnish
      to each Investor so long as such Investor owns Registrable Securities, promptly
      upon request, (i) a written statement by the Company, if true, that it has
      complied with the reporting requirements of Rule 144, the 1933 Act and the
      1934
      Act, (ii) a copy of the most recent annual report of the Company and such other
      reports and documents so filed by the Company, and (iii) such other information
      as may be reasonably requested to permit the Investors to sell such securities
      pursuant to Rule 144 without registration.

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

     

    9. Assignment
      of Registration Rights.
      

     

    Prior
      to
      the initial declaration by the SEC of the effectiveness of the applicable
      Registration Statement, the rights under this Agreement shall be automatically
      assignable by the Investors to any transferee of all or any portion of such
      Investor's Registrable Securities if: (i) the Investor agrees in writing with
      the transferee or assignee to assign such rights, and a copy of such agreement
      is furnished to the Company within a reasonable time after such assignment;
      (ii)
      the Company is, within a reasonable time after such transfer or assignment,
      furnished with written notice of (a) the name and address of such transferee
      or
      assignee, and (b) the securities with respect to which such registration rights
      are being transferred or assigned; (iii) immediately following such transfer
      or
      assignment the further disposition of such securities by the transferee or
      assignee is restricted under the 1933 Act or applicable state securities laws;
      (iv) at or before the time the Company receives the written notice contemplated
      by clause (ii) of this sentence the transferee or assignee agrees in writing
      with the Company to be bound by all of the provisions contained herein; and
      (v)
      such transfer shall have been made in accordance with the applicable
      requirements of the Securities Purchase Agreement. After the initial declaration
      by the SEC of the effectiveness of the Registration Statement that registers
      such Registrable Securities, this Agreement shall not be assignable by the
      Investors. 

     

    10. Amendment
      of Registration Rights.

     

    Provisions
      of this Agreement may be amended and the observance thereof may be waived
      (either generally or in a particular instance and either retroactively or
      prospectively), only with the written consent of the Company and the holders
      of
      a majority of outstanding common stock issued through this offering (the
“Holders”) provided that no Holder may be disproportionately adversely affected
      by such amendment or waiver without such Holder’s consent, except as a result of
      Holder holding a greater percentage of Registrable Securities. Any amendment
      or
      waiver effected in accordance with this Section 10 shall be binding upon each
      Investor and the Company. No such amendment shall be effective to the extent
      that it applies to less than all of the holders of the Registrable Securities.
      

     

    11. Miscellaneous.

     

    a. A
      Person
      is deemed to be a holder of Registrable Securities whenever such Person owns
      or
      is deemed to own of record such Registrable Securities. If the Company receives
      conflicting instructions, notices or elections from two or more Persons with
      respect to the same Registrable Securities, the Company shall act upon the
      basis
      of instructions, notice or election received from the such record owner of
      such
      Registrable Securities.

     

    b. Any
      notices, consents, waivers or other communications required or permitted to
      be
      given under the terms of this Agreement must be in writing and will be deemed
      to
      have been delivered: (i) upon receipt, when delivered personally; (ii) upon
      receipt, when sent by facsimile (provided confirmation of transmission is
      mechanically or electronically generated and kept on file by the sending party);
      or (iii) one Business Day after deposit with a nationally recognized overnight
      delivery service, in each case properly addressed to the party to receive the
      same. The addresses and facsimile numbers for such communications shall as
      set
      forth in Section 9(f) of the Securities Purchase Agreement.

     

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

     

    If
      to a
      Buyer, to its address and facsimile number set forth on the Schedule of Buyers
      attached hereto, with copies to such Buyer's representatives as set forth on
      the
      Schedule of Buyers, or to such other address and/or facsimile number and/or
      to
      the attention of such other Person as the recipient party has specified by
      written notice given to each other party five (5) days prior to the
      effectiveness of such change. Written confirmation of receipt (A) given by
      the
      recipient of such notice, consent, waiver or other communication, (B)
      mechanically or electronically generated by the sender's facsimile machine
      containing the time, date, recipient facsimile number and an image of the first
      page of such transmission or (C) provided by a courier or overnight courier
      service shall be rebuttable evidence of personal service, receipt by facsimile
      or receipt from a nationally recognized overnight delivery service in accordance
      with clause (i), (ii) or (iii) above, respectively.

     

    c. Failure
      of any party to exercise any right or remedy under this Agreement or otherwise,
      or delay by a party in exercising such right or remedy, shall not operate as
      a
      waiver thereof.

     

    d. This
      Agreement shall be governed by, and construed in accordance with, the internal
      laws of the State of New York without regard to the choice of law principles
      thereof. Each of the parties hereto irrevocably submits to the exclusive
      jurisdiction of the courts of the State of New York located in New York County
      and the United States District Court for the Southern District of New York
      for
      the purpose of any suit, action, proceeding or judgment relating to or arising
      out of this Agreement and the transactions contemplated hereby. Service of
      process in connection with any such suit, action or proceeding may be served
      on
      each party hereto anywhere in the world by the same methods as are specified
      for
      the giving of notices under this Agreement. Each of the parties hereto
      irrevocably consents to the jurisdiction of any such court in any such suit,
      action or proceeding and to the laying of venue in such court. Each party hereto
      irrevocably waives any objection to the laying of venue of any such suit, action
      or proceeding brought in such courts and irrevocably waives any claim that
      any
      such suit, action or proceeding brought in any such court has been brought
      in an
      inconvenient forum. EACH
      OF THE PARTIES HERETO WAIVES ANY RIGHT TO REQUEST A TRIAL BY JURY IN ANY
      LITIGATION WITH RESPECT TO THIS AGREEMENT AND REPRESENTS THAT COUNSEL HAS BEEN
      CONSULTED SPECIFICALLY AS TO THIS WAIVER.

     

    e. This
      Agreement, the other Transaction Documents (as defined in the Securities
      Purchase Agreement) and the instruments referenced herein and therein constitute
      the entire agreement among the parties hereto with respect to the subject matter
      hereof and thereof. There are no restrictions, promises, warranties or
      undertakings, other than those set forth or referred to herein and therein.
      This
      Agreement, the other Transaction Documents and the instruments referenced herein
      and therein supersede all prior agreements and understandings among the parties
      hereto with respect to the subject matter hereof and thereof.

     

    f. Subject
      to the requirements of Section 9, this Agreement shall inure to the benefit
      of
      and be binding upon the permitted successors and assigns of each of the parties
      hereto.

     

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

     

    g. The
      headings in this Agreement are for convenience of reference only and shall
      not
      limit or otherwise affect the meaning hereof.

     

    h. This
      Agreement may be executed in identical counterparts, each of which shall be
      deemed an original but all of which shall constitute one and the same agreement.
      This Agreement, once executed by a party, may be delivered to the other party
      hereto by facsimile transmission of a copy of this Agreement bearing the
      signature of the party so delivering this Agreement.

     

    i. Each
      party shall do and perform, or cause to be done and performed, all such further
      acts and things, and shall execute and deliver all such other agreements,
      certificates, instruments and documents, as any other party may reasonably
      request in order to carry out the intent and accomplish the purposes of this
      Agreement and the consummation of the transactions contemplated
      hereby.

     

    j. All
      consents and other determinations required to be made by the Investors pursuant
      to this Agreement shall be made, unless otherwise specified in this Agreement,
      by the Required Holders.

     

    k. The
      language used in this Agreement will be deemed to be the language chosen by
      the
      parties to express their mutual intent and no rules of strict construction
      will
      be applied against any party. 

     

    l. This
      Agreement is intended for the benefit of the parties hereto and their respective
      permitted successors and assigns, and is not for the benefit of, nor may any
      provision hereof be enforced by, any other Person. The rights of each Buyer
      under this Agreement may be transferred upon a transfer of Buyer’s Securities in
      a private resale transaction exempt from registration under Section 4(1) of
      the
      Securities Act; provided that, such transferee shall execute this Agreement
      and
      that the Company shall be relieved of any damages for failure to maintain
      effectiveness of any registration statement required to be filed in connection
      with any lapse in effectiveness of the registration statement caused by the
      filing of any post-effectiveness amendment to such registration statement filed,
      in part or in whole, to update the selling shareholder table to include such
      transferee. 

     

    m. The
      obligations of each Buyer hereunder are several and not joint with the
      obligations of any other Buyer, and no provision of this Agreement is intended
      to confer any obligations on any Buyer vis-à-vis any other Buyer. Nothing
      contained herein, and no action taken by any Buyer pursuant hereto, shall be
      deemed to constitute the Buyers as a partnership, an association, a joint
      venture or any other kind of entity, or create a presumption that the Buyers
      are
      in any way acting in concert or as a group with respect to such obligations
      or
      the transactions contemplated herein.

     

    

     

     

    *
      * * * *
      *

    

    
      
         

      

      
        14

        
          

        

      

      
         

      

       

    

    IN
      WITNESS WHEREOF,
      each
      Buyer and the Company have caused their respective signature page to this
      Registration Rights Agreement to be duly executed as of the date first written
      above.

     

    
      	 	
              COMPANY:

            
	 	 
	 	
              COMPOSITE
                TECHNOLOGY CORPORATION

            
	 	 
	 	 
	 	 
	 	
              By:                                                                   
                

              Benton
                H Wilcoxon

              Chief
                Executive Officer

            
	 	 

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    IN
      WITNESS WHEREOF,
      each
      Buyer and the Company have caused their respective signature page to this
      Registration Rights Agreement to be duly executed as of the date first written
      above.

     

    
      	 	
              BUYERS:

               

            
	 	
                                                                                                           
                

              Buyer

               

               

                                                                                                           
                

              Signature

               

               

                                                                                                           
                

              Authorized
                Representative

               

               

                                                                                                           
                

              Title

            
	 	 

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

       

    

    EXHIBIT
      A

    

    PLAN
      OF DISTRIBUTION

    

     

    We
      are
      registering the shares of Common Stock and Common Stock issuable upon exercise
      of the Warrants to permit the resale of these shares of Common Stock by the
      holders of the Common Stock and warrants from time to time after the date of
      this prospectus. We will not receive any of the proceeds from the sale by the
      selling stockholders of the shares of Common Stock. We will bear all fees and
      expenses incident to our obligation to register the shares of Common
      Stock.

     

    The
      selling stockholders may sell all or a portion of the shares of Common Stock
      beneficially owned by them and offered hereby from time to time directly or
      through one or more underwriters, broker-dealers or agents. If the shares of
      Common Stock are sold through underwriters or broker-dealers, the selling
      stockholders will be responsible for underwriting discounts or commissions
      or
      agent’s commissions. The shares of Common Stock may be sold in one or more
      transactions at fixed prices, at prevailing market prices at the time of the
      sale, at varying prices determined at the time of sale, or at negotiated prices.
      These sales may be effected in transactions, which may involve crosses or block
      transactions, 

     

    
      	
            	·	
              on
                any national securities exchange or quotation service on which the
                securities may be listed or quoted at the time of
                sale;

            

    

     

    
      	
            	·	
              in
                the over-the-counter market;

            

    

     

    
      	
            	·	
              in
                transactions otherwise than on these exchanges or systems or in the
                over-the-counter market;

            

    

     

    
      	
            	·	
              through
                the writing of options, whether such options are listed on an options
                exchange or otherwise;

            

    

     

    
      	
            	·	
              ordinary
                brokerage transactions and transactions in which the broker-dealer
                solicits purchasers;

            

    

     

    
      	
            	·	
              block
                trades in which the broker-dealer will attempt to sell the shares
                as agent
                but may position and resell a portion of the block as principal to
                facilitate the transaction;

            

    

     

    
      	
            	·	
              purchases
                by a broker-dealer as principal and resale by the broker-dealer for
                its
                account;

            

    

     

    
      	
            	·	
              an
                exchange distribution in accordance with the rules of the applicable
                exchange;

            

    

     

    
      	
            	·	
              privately
                negotiated transactions;

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
            	·	
              short
                sales;

            

    

     

    
      	
            	·	
              sales
                pursuant to Rule 144;

            

    

     

    
      	
            	·	
              broker-dealers
                may agree with the selling stockholders to sell a specified number
                of such
                shares at a stipulated price per
                share;

            

    

     

    
      	
            	·	
              a
                combination of any such methods of sale;
                and

            

    

     

    
      	
            	·	
              any
                other method permitted pursuant to applicable
                law.

            

    

     

    If
      the
      selling stockholders effect such transactions by selling shares of Common Stock
      to or through underwriters, broker-dealers or agents, such underwriters,
      broker-dealers or agents may receive commissions in the form of discounts,
      concessions or commissions from the selling stockholders or commissions from
      purchasers of the shares of Common Stock for whom they may act as agent or
      to
      whom they may sell as principal (which discounts, concessions or commissions
      as
      to particular underwriters, broker-dealers or agents may be in excess of those
      customary in the types of transactions involved). In connection with sales
      of
      the shares of Common Stock or otherwise, the selling stockholders may enter
      into
      hedging transactions with broker-dealers, which may in turn engage in short
      sales of the shares of Common Stock in the course of hedging in positions they
      assume. The selling stockholders may also sell shares of Common Stock short
      and
      deliver shares of Common Stock covered by this prospectus to close out short
      positions and to return borrowed shares in connection with such short sales.
      The
      selling stockholders may also loan or pledge shares of Common Stock to
      broker-dealers that in turn may sell such shares. The selling stockholders
      may
      also enter into option or other transactions with broker-dealers or other
      financial institutions or the creation of one or more derivative securities
      which require the delivery to such broker-dealer or other financial institution
      of shares offered by this prospectus, which shares such broker-dealer or other
      financial institution may resell pursuant to this prospectus (as supplemented
      or
      amended to reflect such transaction). 

     

    The
      selling stockholders may pledge or grant a security interest in some or all
      of
      the Warrants or shares of Common Stock owned by them and, if they default in
      the
      performance of their secured obligations, the pledgees or secured parties may
      offer and sell the shares of Common Stock from time to time pursuant to this
      prospectus or any amendment to this prospectus under Rule 424(b)(3) or other
      applicable provision of the Securities Act of 1933, as amended, amending, if
      necessary, the list of selling stockholders to include the pledgee, transferee
      or other successors in interest as selling stockholders under this prospectus.
      The selling stockholders also may transfer and donate the shares of Common
      Stock
      in other circumstances in which case the transferees, donees, pledgees or other
      successors in interest will be the selling beneficial owners for purposes of
      this prospectus.

     

    The
      selling stockholders and any broker-dealer participating in the distribution
      of
      the shares of Common Stock may be deemed to be “underwriters” within the meaning
      of the Securities Act, and any commission paid, or any discounts or concessions
      allowed to, any such broker-dealer may be deemed to be underwriting commissions
      or discounts under the Securities Act. At the time a particular offering of
      the
      shares of Common Stock is made, a prospectus supplement, if required, will
      be
      distributed which will set forth the aggregate amount of shares of Common Stock
      being offered and the terms of the offering, including the name or names of
      any
      broker-dealers or agents, any discounts, commissions and other terms
      constituting compensation from the selling stockholders and any discounts,
      commissions or concessions allowed or reallowed or paid to
      broker-dealers.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    Under
      the
      securities laws of some states, the shares of Common Stock may be sold in such
      states only through registered or licensed brokers or dealers. In addition,
      in
      some states the shares of Common Stock may not be sold unless such shares have
      been registered or qualified for sale in such state or an exemption from
      registration or qualification is available and is complied with.

     

    There
      can
      be no assurance that any selling stockholder will sell any or all of the shares
      of Common Stock registered pursuant to the shelf registration statement, of
      which this prospectus forms a part.

     

    The
      selling stockholders and any other person participating in such distribution
      will be subject to applicable provisions of the Securities Exchange Act of
      1934,
      as amended, and the rules and regulations thereunder, including, without
      limitation, Regulation M of the Exchange Act, which may limit the timing of
      purchases and sales of any of the shares of Common Stock by the selling
      stockholders and any other participating person. Regulation M may also restrict
      the ability of any person engaged in the distribution of the shares of Common
      Stock to engage in market-making activities with respect to the shares of Common
      Stock. All of the foregoing may affect the marketability of the shares of Common
      Stock and the ability of any person or entity to engage in market-making
      activities with respect to the shares of Common Stock.

     

    We
      will
      pay all expenses of the registration of the shares of Common Stock pursuant
      to
      the registration rights agreement, estimated to be
      $[     ] in total, including, without limitation,
      Securities and Exchange Commission filing fees and expenses of compliance with
      state securities or “blue sky” laws; provided, however, that a selling
      stockholder will pay all underwriting discounts and selling commissions, if
      any.
      We will indemnify the selling stockholders against liabilities, including some
      liabilities under the Securities Act, in accordance with the registration rights
      agreements, or the selling stockholders will be entitled to contribution. We
      may
      be indemnified by the selling stockholders against civil liabilities, including
      liabilities under the Securities Act, that may arise from any written
      information furnished to us by the selling stockholder specifically for use
      in
      this prospectus, in accordance with the related registration rights agreements,
      or we may be entitled to contribution.

     

    Once
      sold
      under the shelf registration statement, of which this prospectus forms a part,
      the shares of Common Stock will be freely tradable in the hands of persons
      other
      than our affiliates.ACE
      SECURITIES CORP.

    Depositor

     

    OCWEN
      LOAN SERVICING, LLC

    a
      Servicer

     

    GMAC
      MORTGAGE, LLC

    a
      Servicer

     

    WELLS
      FARGO BANK, NATIONAL ASSOCIATION

    Master
      Servicer and Securities Administrator

     

    

    HSBC
      BANK
      USA, NATIONAL ASSOCIATION

    Trustee

    

    POOLING
      AND SERVICING AGREEMENT

    Dated
      as
      of April 1, 2007

     

    ACE
      Securities Corp. Home Equity Loan Trust, Series 2007-HE4

    Asset
      Backed Pass-Through Certificates

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    TABLE
      OF
      CONTENTS

    
      

        
          	
                  ARTICLE
                    I DEFINITIONS

                	 	 	
                  10

                	 
	 	 	 	 	 
	
                  SECTION
                    1.01. Defined Terms

                	 	 	
                  10

                	 
	
                  SECTION
                    1.02. Allocation of Certain Interest Shortfalls

                	 	 	
                  92

                	 
	
                  SECTION
                    1.03. Rights of the NIMS Insurer

                	 	 	
                  94

                	 
	 	 	 	 	 
	
                  ARTICLE
                    II CONVEYANCE OF MORTGAGE LOANS; ORIGINAL ISSUANCE OF
                    CERTIFICATES

                	 	 	
                  95

                	 
	 	 	 	 	 
	
                  SECTION
                    2.01. Conveyance of the Mortgage Loans

                	 	 	
                  95

                	 
	
                  SECTION
                    2.02. Acceptance of REMIC I by Trustee

                	 	 	
                  96

                	 
	
                  SECTION
                    2.03. Repurchase or Substitution of Mortgage Loans

                	 	 	
                  97

                	 
	
                  SECTION
                    2.04. Representations and Warranties of the Master
                    Servicer

                	 	 	
                  100

                	 
	
                  SECTION
                    2.05. Representations, Warranties and Covenants of Ocwen and
                    GMAC

                	 	 	
                  101

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

                	 	 	
                  105

                	 
	
                  SECTION
                    2.07. Conveyance of the REMIC I Regular Interests; Acceptance
                    of REMIC II,
                    REMIC III and REMIC IV by the Trustee

                	 	 	
                  106

                	 
	
                  SECTION
                    2.08. Issuance of the Residual Certificates

                	 	 	
                  106

                	 
	
                  SECTION
                    2.09. Conveyance of Subsequent Mortgage Loans

                	 	 	
                  107

                	 
	
                  SECTION
                    2.10. Establishment of the Trust

                	 	 	
                  109

                	 
	
                  SECTION
                    2.11. Purpose and Powers of the Trust

                	 	 	
                  109

                	 
	
                  SECTION
                    2.12. Representations and Warranties of the Trustee

                	 	 	
                  110

                	 
	 	 	 	 	 
	
                  ARTICLE
                    III ADMINISTRATION AND SERVICING OF THE MORTGAGE LOANS;
                    ACCOUNTS

                	 	 	
                  111

                	 
	 	 	 	 	 
	
                  SECTION
                    3.01. The Servicers to Act as Servicer

                	 	 	
                  111

                	 
	
                  SECTION
                    3.02. Sub-Servicing Agreements Between a Servicer and
                    Sub-Servicers

                	 	 	
                  114

                	 
	
                  SECTION
                    3.03. Successor Sub-Servicers.

                	 	 	
                  116

                	 
	
                  SECTION
                    3.04. No Contractual Relationship Between Sub-Servicer, Subcontractor,
                    Trustee, the NIMS Insurer or the Certificateholders

                	 	 	
                  116

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

                	 	 	
                  116

                	 
	
                  SECTION
                    3.06. Collection of Certain Mortgage Loan Payments

                	 	 	
                  117

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

                	 	 	
                  118

                	 
	
                  SECTION
                    3.08. Collection Accounts and Distribution Account

                	 	 	
                  119

                	 
	
                  SECTION
                    3.09. Withdrawals from the Collection Accounts and Distribution
                    Account

                	 	 	
                  121

                	 
	
                  SECTION
                    3.10. Investment of Funds in the Investment Accounts

                	 	 	
                  124

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

                	 	 	
                  125

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

                	 	 	
                  127

                	 
	
                  SECTION
                    3.13. Realization Upon Defaulted Mortgage Loans

                	 	 	
                  128

                	 
	
                  SECTION
                    3.14. Trustee to Cooperate; Release of Mortgage Files

                	 	 	
                  130

                	 

        

         

        
          
            
            

          

          
            i

            
              

            

          

          
            
            

          

        

         

        
          	
                  SECTION
                    3.15. Servicing Compensation

                	 	 	
                  132

                	 
	
                  SECTION
                    3.16. Collection Account Statements

                	 	 	
                  132

                	 
	
                  SECTION
                    3.17. Annual Statement as to Compliance

                	 	 	
                  133

                	 
	
                  SECTION
                    3.18. Assessments of Compliance and Attestation Reports

                	 	 	
                  133

                	 
	
                  SECTION
                    3.19. [Reserved]

                	 	 	
                  135

                	 
	
                  SECTION
                    3.20. Annual Certification; Additional Information

                	 	 	
                  135

                	 
	
                  SECTION
                    3.21. Access to Certain Documentation

                	 	 	
                  136

                	 
	
                  SECTION
                    3.22. Title, Management and Disposition of REO Property

                	 	 	
                  137

                	 
	
                  SECTION
                    3.23. Obligations of the Servicers in Respect of Prepayment Interest
                    Shortfalls; Relief Act Interest Shortfalls

                	 	 	
                  140

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

                	 	 	
                  140

                	 
	
                  SECTION
                    3.25. Reserve Fund

                	 	 	
                  141

                	 
	
                  SECTION
                    3.26. Advance Facility

                	 	 	
                  143

                	 
	
                  SECTION
                    3.27. Indemnification

                	 	 	
                  145

                	 
	
                  SECTION
                    3.28. Pre-Funding Account

                	 	 	
                  145

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

                	 	 	
                  147

                	 
	 	 	 	 	 
	
                  SECTION
                    4.01. Master Servicer

                	 	 	
                  147

                	 
	
                  SECTION
                    4.02. REMIC-Related Covenants

                	 	 	
                  148

                	 
	
                  SECTION
                    4.03. Monitoring of Servicers

                	 	 	
                  148

                	 
	
                  SECTION
                    4.04. Fidelity Bond

                	 	 	
                  149

                	 
	
                  SECTION
                    4.05. Power to Act; Procedures

                	 	 	
                  150

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

                	 	 	
                  150

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

                	 	 	
                  151

                	 
	
                  SECTION
                    4.08. Standard Hazard Insurance and Flood Insurance
                    Policies

                	 	 	
                  151

                	 
	
                  SECTION
                    4.09. Presentment of Claims and Collection of Proceeds

                	 	 	
                  151

                	 
	
                  SECTION
                    4.10. Maintenance of Primary Mortgage Insurance Policies

                	 	 	
                  152

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

                	 	 	
                  152

                	 
	
                  SECTION
                    4.12. Realization Upon Defaulted Mortgage Loans

                	 	 	
                  153

                	 
	
                  SECTION
                    4.13. Compensation for the Master Servicer

                	 	 	
                  153

                	 
	
                  SECTION
                    4.14. REO Property

                	 	 	
                  153

                	 
	
                  SECTION
                    4.15. Master Servicer Annual Statement of Compliance

                	 	 	
                  154

                	 
	
                  SECTION
                    4.16. Master Servicer Assessments of Compliance

                	 	 	
                  155

                	 
	
                  SECTION
                    4.17. Master Servicer Attestation Reports

                	 	 	
                  156

                	 
	
                  SECTION
                    4.18. Annual Certification

                	 	 	
                  157

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

                	 	 	
                  157

                	 
	
                  SECTION
                    4.20. Prepayment Penalty Verification

                	 	 	
                  158

                	 
	 	 	 	 	 
	
                  ARTICLE
                    V PAYMENTS TO CERTIFICATEHOLDERS

                	 	 	
                  159

                	 
	 	 	 	 	 
	
                  SECTION
                    5.01. Distributions

                	 	 	
                  159

                	 
	
                  SECTION
                    5.02. Statements to Certificateholders

                	 	 	
                  175

                	 

        

         

        
          
            
            

          

          
            ii

            
              

            

          

          
            
            

          

        

         

        
          	
                  SECTION
                    5.03. Servicer Reports; P&I Advances

                	 	 	
                  179

                	 
	
                  SECTION
                    5.04. Allocation of Realized Losses

                	 	 	
                  182

                	 
	
                  SECTION
                    5.05. Compliance with Withholding Requirements

                	 	 	
                  186

                	 
	
                  SECTION
                    5.06. Reports Filed with Securities and Exchange
                    Commission

                	 	 	
                  186

                	 
	
                  SECTION
                    5.07. Supplemental Interest Trust

                	 	 	
                  191

                	 
	
                  SECTION
                    5.08. Tax Treatment of Swap Payments and Swap Termination
                    Payments

                	 	 	
                  194

                	 
	
                  SECTION
                    5.09. Swap Collateral Account

                	 	 	
                  195

                	 
	
                  SECTION
                    5.10. Cap Collateral Account

                	 	 	
                  195

                	 
	 	 	 	 	 
	
                  ARTICLE
                    VI THE CERTIFICATES

                	 	 	
                  197

                	 
	 	 	 	 	 
	
                  SECTION
                    6.01. The Certificates

                	 	 	
                  197

                	 
	
                  SECTION
                    6.02. Registration of Transfer and Exchange of
                    Certificates

                	 	 	
                  199

                	 
	
                  SECTION
                    6.03. Mutilated, Destroyed, Lost or Stolen Certificates

                	 	 	
                  205

                	 
	
                  SECTION
                    6.04. Persons Deemed Owners

                	 	 	
                  206

                	 
	
                  SECTION
                    6.05. Certain Available Information

                	 	 	
                  206

                	 
	 	 	 	 	 
	
                  ARTICLE
                    VII THE DEPOSITOR, THE SERVICERS AND THE MASTER SERVICER

                	 	 	
                  207

                	 
	 	 	 	 	 
	
                  SECTION
                    7.01. Liability of the Depositor, the Servicers and the Master
                    Servicer

                	 	 	
                  207

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

                	 	 	
                  207

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

                	 	 	
                  207

                	 
	
                  SECTION
                    7.04. Limitation on Resignation of the Servicers

                	 	 	
                  208

                	 
	
                  SECTION
                    7.05. Limitation on Resignation of the Master Servicer

                	 	 	
                  210

                	 
	
                  SECTION
                    7.06. Assignment of Master Servicing

                	 	 	
                  210

                	 
	
                  SECTION
                    7.07. Rights of the Depositor in Respect of the Servicers and
                    the Master
                    Servicer

                	 	 	
                  211

                	 
	
                  SECTION
                    7.08. Duties of the Credit Risk Manager

                	 	 	
                  212

                	 
	
                  SECTION
                    7.09. Limitation Upon Liability of the Credit Risk Manager

                	 	 	
                  212

                	 
	
                  SECTION
                    7.10. Removal of the Credit Risk Manager

                	 	 	
                  213

                	 
	
                  SECTION
                    7.11. Transfer of Servicing by Sponsor to a Special
                    Servicer

                	 	 	
                  213

                	 
	 	 	 	 	 
	
                  ARTICLE
                    VIII DEFAULT

                	 	 	
                  214

                	 
	 	 	 	 	 
	
                  SECTION
                    8.01. Servicer Events of Default

                	 	 	
                  214

                	 
	
                  SECTION
                    8.02. Master Servicer to Act; Appointment of Successor

                	 	 	
                  219

                	 
	
                  SECTION
                    8.03. Notification to Certificateholders

                	 	 	
                  221

                	 
	
                  SECTION
                    8.04. Waiver of Events of Default

                	 	 	
                  221

                	 
	 	 	 	 	 
	
                  ARTICLE
                    IX CONCERNING THE TRUSTEE AND THE SECURITIES ADMINISTRATOR

                	 	 	
                  222

                	 
	 	 	 	 	 
	
                  SECTION
                    9.01. Duties of Trustee and Securities Administrator

                	 	 	
                  222

                	 
	
                  SECTION
                    9.02. Certain Matters Affecting Trustee and Securities
                    Administrator

                	 	 	
                  223

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

                	 	 	
                  227

                	 
	
                  SECTION
                    9.04. Trustee and Securities Administrator May Own
                    Certificates

                	 	 	
                  227

                	 

        

         

        
          
            
            

          

          
            iii

            
              

            

          

          
            
            

          

        

         

        
          	
                  SECTION
                    9.05. Fees and Expenses of Trustee, Custodians and Securities
                    Administrator

                	 	 	
                  227

                	 
	
                  SECTION
                    9.06. Eligibility Requirements for Trustee and Securities
                    Administrator

                	 	 	
                  228

                	 
	
                  SECTION
                    9.07. Resignation and Removal of Trustee and Securities
                    Administrator

                	 	 	
                  229

                	 
	
                  SECTION
                    9.08. Successor Trustee or Securities Administrator

                	 	 	
                  230

                	 
	
                  SECTION
                    9.09. Merger or Consolidation of Trustee or Securities
                    Administrator

                	 	 	
                  231

                	 
	
                  SECTION
                    9.10. Appointment of Co-Trustee or Separate Trustee

                	 	 	
                  231

                	 
	
                  SECTION
                    9.11. Appointment of Office or Agency

                	 	 	
                  232

                	 
	
                  SECTION
                    9.12. Representations and Warranties

                	 	 	
                  232

                	 
	 	 	 	 	 
	
                  ARTICLE
                    X TERMINATION

                	 	 	
                  234

                	 
	 	 	 	 	 
	
                  SECTION
                    10.01. Termination Upon Repurchase or Liquidation of All Mortgage
                    Loans

                	 	 	
                  234

                	 
	
                  SECTION
                    10.02. Additional Termination Requirements

                	 	 	
                  237

                	 
	 	 	 	 	 
	
                  ARTICLE
                    XI REMIC PROVISIONS

                	 	 	
                  239

                	 
	 	 	 	 	 
	
                  SECTION
                    11.01. REMIC Administration

                	 	 	
                  239

                	 
	
                  SECTION
                    11.02. Prohibited Transactions and Activities

                	 	 	
                  242

                	 
	
                  SECTION
                    11.03. Indemnification

                	 	 	
                  242

                	 
	 	 	 	 	 
	
                  ARTICLE
                    XII MISCELLANEOUS PROVISIONS

                	 	 	
                  244

                	 
	 	 	 	 	 
	
                  SECTION
                    12.01. Amendment

                	 	 	
                  244

                	 
	
                  SECTION
                    12.02. Recordation of Agreement; Counterparts

                	 	 	
                  245

                	 
	
                  SECTION
                    12.03. Limitation on Rights of Certificateholders

                	 	 	
                  246

                	 
	
                  SECTION
                    12.04. Governing Law

                	 	 	
                  246

                	 
	
                  SECTION
                    12.05. Notices

                	 	 	
                  246

                	 
	
                  SECTION
                    12.06. Severability of Provisions

                	 	 	
                  247

                	 
	
                  SECTION
                    12.07. Notice to Rating Agencies and NIMS Insurer

                	 	 	
                  247

                	 
	
                  SECTION
                    12.08. Article and Section References

                	 	 	
                  248

                	 
	
                  SECTION
                    12.09. Grant of Security Interest

                	 	 	
                  248

                	 
	
                  SECTION
                    12.10. Survival of Indemnification

                	 	 	
                  249

                	 
	
                  SECTION
                    12.11. Intention of the Parties and Interpretation

                	 	 	
                  249

                	 
	
                  SECTION
                    12.12. Indemnification

                	 	 	
                  250

                	 
	
                  SECTION
                    12.13.Swap Provider and NIMS Insurer as Third Party
                    Beneficiaries

                	 	 	
                  250

                	 

        

         

      

    

    
      
        
        

      

      
        iv

        
          

        

      

      
        
        

      

    

     

    
      Exhibits

      
        	
                Exhibit
                  A-1

              	 	
                Form
                  of Class A Certificate

              
	 	 	 
	
                Exhibit
                  A-2

              	 	
                Form
                  of Class M Certificate

              
	 	 	 
	
                Exhibit
                  A-3

              	 	
                Form
                  of Class CE-1 Certificate and Class CE-2 Certificate

              
	 	 	 
	
                Exhibit
                  A-4

              	 	
                Form
                  of Class P Certificate

              
	 	 	 
	
                Exhibit
                  A-5

              	 	
                Form
                  of Class R Certificate

              
	 	 	 
	
                Exhibit
                  B-1

              	 	
                Form
                  of Transferor Representation Letter and Form of Transferee Representation
                  Letter in Connection with Transfer of the Class P Certificates,
                  Class CE-1
                  Certificates, Class CE-2 Certificates and Residual Certificates
                  Pursuant
                  to Rule 144A Under the Securities Act

              
	 	 	 
	
                Exhibit
                  B-2

              	 	
                Form
                  of Transferor Representation Letter and Form of Transferee Representation
                  Letter in Connection with Transfer of the Class P Certificates,
                  Class CE-1
                  Certificates, Class CE-2 Certificates and Residual Certificates
                  Pursuant
                  to Rule 501(a) Under the Securities Act

              
	 	 	 
	
                Exhibit
                  B-3

              	 	
                Form
                  of Transferor Representation Letter and Form of Transferee Representation
                  Letter in Connection with Transfer of the Class P Certificates,
                  Class CE-1
                  Certificates, Class CE-2 Certificates and Residual Certificates
                  Pursuant
                  to Rule 501(a) Under the Securities Act

              
	 	 	 
	
                Exhibit
                  B-4

              	 	
                Form
                  of Transfer Affidavit and Agreement and Form of Transferor Affidavit
                  in
                  Connection with Transfer of Residual Certificates

              
	 	 	 
	
                Exhibit
                  C

              	 	
                Form
                  of Back-Up Certification

              
	 	 	 
	
                Exhibit
                  D

              	 	
                Form
                  of Power of Attorney

              
	 	 	 
	
                Exhibit
                  E

              	 	
                Servicing
                  Criteria

              
	 	 	 
	
                Exhibit
                  F

              	 	
                Mortgage
                  Loan Purchase Agreement 

              
	 	 	 
	
                Exhibit
                  G

              	 	
                Form
                  10-D, Form 8-K and Form 10-K Reporting Responsibility

              
	 	 	 
	
                Exhibit
                  H

              	 	
                Additional
                  Disclosure Notification

              
	 	 	 
	
                Exhibit
                  I

              	 	
                Swap
                  Agreement

              
	 	 	 
	
                Exhibit
                  J

              	 	
                Cap
                  Agreements

              
	 	 	 
	
                Exhibit
                  K

              	 	
                Subsequent
                  Transfer Instrument

              
	 	 	 
	
                Exhibit
                  L

              	 	
                Addition
                  Notice

              
	 	 	 
	
                Exhibit
                  M

              	 	
                Identified
                  Subsequent Mortgage Loans

              
	 	 	 
	
                Exhibit
                  N

              	 	
                Assignment
                  Agreement and Servicing Agreement

              
	 	 	 
	
                Schedule
                  1

              	 	
                Mortgage
                  Loan Schedule

              
	 	 	 
	
                Schedule
                  2

              	 	
                Prepayment
                  Charge Schedule

              
	 	 	 
	
                Schedule
                  3

              	 	
                Reserved

              
	 	 	 
	
                Schedule
                  4

              	 	
                Standard
                  File Layout - Delinquency Reporting and Realized Losses and
                  Gains

              
	 	 	 
	
                Schedule
                  5

              	 	
                Standard
                  File Layout - Master Servicing

              
	 	 	 
	
                Schedule
                  6

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

              

      

    

     

    
      
        
        

      

      
        v

        
          

        

      

      
        
        

      

    

     

    This
      Pooling and Servicing Agreement, is dated and effective as of April 1, 2007,
      among ACE SECURITIES CORP., as Depositor, OCWEN LOAN SERVICING, LLC, as a
      Servicer, GMAC MORTGAGE, LLC, as a Servicer, WELLS FARGO BANK, NATIONAL
      ASSOCIATION, as Master Servicer and Securities Administrator and HSBC BANK
      USA,
      NATIONAL ASSOCIATION, as Trustee.

     

    PRELIMINARY
      STATEMENT:

     

    The
      Depositor intends to sell pass-through certificates to be issued hereunder
      in
      multiple classes, which in the aggregate will evidence the entire beneficial
      ownership interest of the Trust Fund created hereunder. The Trust Fund will
      consist of a segregated pool of assets comprised of the Mortgage Loans and
      certain other related assets subject to this Agreement.

     

    REMIC
      I

     

    As
      provided herein, the Securities Administrator will elect to treat the segregated
      pool of assets consisting of the Mortgage Loans and certain other related assets
      subject to this Agreement (other than the Pre-Funding Account, the Capitalized
      Interest Account, the Reserve Fund and, for the avoidance of doubt, the
      Supplemental Interest Trust, the Cap Contracts and the Swap Agreement) as a
      REMIC for federal income tax purposes, and such segregated pool of assets will
      be designated as “REMIC I”. The Class R-I Interest will be the sole class of
“residual interests” in REMIC I for purposes of the REMIC Provisions (as defined
      herein). The following table irrevocably sets forth the designation, the REMIC
      I
      Remittance Rate, the initial Uncertificated Balance and, for purposes of
      satisfying Treasury regulation Section 1.860G-1(a)(4)(iii), the “latest possible
      maturity date” for each of the REMIC I Regular Interests (as defined herein).
      None of the REMIC I Regular Interests will be certificated.

    

    
      	
              Designation

            	 	
              REMIC
                I

              Remittance

              Rate

            	 	
              Initial

              Uncertificated
                Balance

            	 	
              Latest
                Possible

              Maturity
                Date (1)

            	 
	
              LT1

            	 	 	
              Variable

            	
              (2)

            	
              $

            	
              451,652,231.00

            	 	 	
              May
                2037

            	 
	
              LT1PF

            	 	 	
              Variable

            	
              (2)

            	
              $

            	
              11,386,067.15

            	 	 	
              May
                2037

            	 
	
              LT2

            	 	 	
              Variable

            	
              (2)

            	
              $

            	
              612,334,844.00

            	 	 	
              May
                2037

            	 
	
              LT2PF

            	 	 	
              Variable

            	
              (2)

            	
              $

            	
              10,489,349.93

            	 	 	
              May
                2037

            	 
	
              LTP

            	 	 	
              Variable

            	
              (2)

            	
              $

            	
              100.00

            	 	 	
              May
                2037

            	 
	
              LTCE2G

            	 	 	
              Variable

            	
              (2)

            	 	
              N/A

            	
              (3)

            	 	
              May
                2037

            	 
	
              LTCE2C

            	 	 	
              Variable

            	
              (2)

            	 	
              N/A

            	
              (4)

            	 	
              May
                2037

            	 

    

     

    
      

    

    
      	(1)	
              For
                purposes of Section 1.860G-1(a)(4)(iii) of the Treasury regulations,
                the Distribution Date immediately following the maturity date for
                the
                Mortgage Loan with the latest maturity date has been designated as
                the
                “latest possible maturity date” for each REMIC I Regular
                Interest.

            

    

     

    
      	(2)	
              Calculated
                in accordance with the definition of “REMIC I Remittance Rate”
                herein.

            

    

     

    
      	(3)	
              REMIC
                I Regular Interest LTCE2G will not have an Uncertificated Balance,
                but
                will accrue interest on its Notional Amount described in accordance
                with
                the definition of “Notional Amount”
herein.

            

    

     

    
      	(4)	
              REMIC
                I Regular Interest LTCE2C will not have an Uncertificated Balance,
                but
                will accrue interest on its Notional Amount described in accordance
                with
                the definition of “Notional Amount”
herein.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    REMIC
      II

     

    As
      provided herein, the Securities Administrator will elect to treat the segregated
      pool of assets consisting of the REMIC I Regular Interests as a REMIC for
      federal income tax purposes, and such segregated pool of assets will be
      designated as “REMIC II.” The Class R-II Interest will evidence the sole class
      of “residual interests” in REMIC II for purposes of the REMIC Provisions. The
      following table irrevocably sets forth the designation, the REMIC II Remittance
      Rate, the initial aggregate Uncertificated Balance and, for purposes of
      satisfying Treasury regulation Section 1.860G-1(a)(4)(iii), the “latest possible
      maturity date” for each of the REMIC II Regular Interests. None of the REMIC II
      Regular Interests will be certificated.

     

    
      	
              Designation

            	 	
              REMIC
                II

              Remittance
                Rate

            	 	
              Initial

              Uncertificated
                Balance

            	 	
              Latest
                Possible

              Maturity
                Date(1)

            	 
	
              I

            	 	 	
              Variable(2)

            	
            	
              $

            	
              71,721,908.97

            	 	 	
              May
                2037

            	 
	
              I-1-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              4,283,793.02

            	 	 	
              May
                2037

            	 
	
              I-1-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              4,283,793.02

            	 	 	
              May
                2037

            	 
	
              I-2-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              4,598,179.16

            	 	 	
              May
                2037

            	 
	
              I-2-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              4,598,179.16

            	 	 	
              May
                2037

            	 
	
              I-3-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              4,870,902.99

            	 	 	
              May
                2037

            	 
	
              I-3-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              4,870,902.99

            	 	 	
              May
                2037

            	 
	
              I-4-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              4,964,565.42

            	 	 	
              May
                2037

            	 
	
              I-4-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              4,964,565.42

            	 	 	
              May
                2037

            	 
	
              I-5-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              4,840,423.87

            	 	 	
              May
                2037

            	 
	
              I-5-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              4,840,423.87

            	 	 	
              May
                2037

            	 
	
              I-6-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              4,717,042.43

            	 	 	
              May
                2037

            	 
	
              I-6-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              4,717,042.43

            	 	 	
              May
                2037

            	 
	
              I-7-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              4,596,809.06

            	 	 	
              May
                2037

            	 
	
              I-7-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              4,596,809.06

            	 	 	
              May
                2037

            	 
	
              I-8-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              4,479,644.45

            	 	 	
              May
                2037

            	 
	
              I-8-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              4,479,644.45

            	 	 	
              May
                2037

            	 
	
              I-9-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              4,365,469.08

            	 	 	
              May
                2037

            	 
	
              I-9-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              4,365,469.08

            	 	 	
              May
                2037

            	 
	
              I-10-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              4,254,207.47

            	 	 	
              May
                2037

            	 
	
              I-10-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              4,254,207.47

            	 	 	
              May
                2037

            	 
	
              I-11-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              4,149,497.45

            	 	 	
              May
                2037

            	 
	
              I-11-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              4,149,497.45

            	 	 	
              May
                2037

            	 
	
              I-12-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              4,061,013.30

            	 	 	
              May
                2037

            	 
	
              I-12-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              4,061,013.30

            	 	 	
              May
                2037

            	 
	
              I-13-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              3,988,329.89

            	 	 	
              May
                2037

            	 
	
              I-13-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              3,988,329.89

            	 	 	
              May
                2037

            	 
	
              I-14-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              4,203,489.18

            	 	 	
              May
                2037

            	 
	
              I-14-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              4,203,489.18

            	 	 	
              May
                2037

            	 
	
              I-15-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              6,261,782.40

            	 	 	
              May
                2037

            	 
	
              I-15-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              6,261,782.40

            	 	 	
              May
                2037

            	 
	
              I-16-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              9,083,063.73

            	 	 	
              May
                2037

            	 
	
              I-16-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              9,083,063.73

            	 	 	
              May
                2037

            	 
	
              I-17-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              8,452,288.10

            	 	 	
              May
                2037

            	 
	
              I-17-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              8,452,288.10

            	 	 	
              May
                2037

            	 

    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    
      	
              Designation

            	 	 	
              REMIC
                II

              Remittance
                Rate

            	 	 	
              Initial

              Uncertificated
                Balance

            	 	 	
              Latest
                Possible

              Maturity
                Date(1)

            	 
	
              I-18-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              7,637,427.36

            	 	 	
              May
                2037

            	 
	
              I-18-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              7,637,427.36

            	 	 	
              May
                2037

            	 
	
              I-19-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              5,605,691.87

            	 	 	
              May
                2037

            	 
	
              I-19-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              5,605,691.87

            	 	 	
              May
                2037

            	 
	
              I-20-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              3,089,846.24

            	 	 	
              May
                2037

            	 
	
              I-20-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              3,089,846.24

            	 	 	
              May
                2037

            	 
	
              I-21-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              2,974,844.04

            	 	 	
              May
                2037

            	 
	
              I-21-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              2,974,844.04

            	 	 	
              May
                2037

            	 
	
              I-22-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              2,890,064.88

            	 	 	
              May
                2037

            	 
	
              I-22-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              2,890,064.88

            	 	 	
              May
                2037

            	 
	
              I-23-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              2,808,016.33

            	 	 	
              May
                2037

            	 
	
              I-23-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              2,808,016.33

            	 	 	
              May
                2037

            	 
	
              I-24-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              2,728,759.16

            	 	 	
              May
                2037

            	 
	
              I-24-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              2,728,759.16

            	 	 	
              May
                2037

            	 
	
              I-25-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              2,651,726.64

            	 	 	
              May
                2037

            	 
	
              I-25-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              2,651,726.64

            	 	 	
              May
                2037

            	 
	
              I-26-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              2,576,911.96

            	 	 	
              May
                2037

            	 
	
              I-26-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              2,576,911.96

            	 	 	
              May
                2037

            	 
	
              I-27-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              2,504,158.82

            	 	 	
              May
                2037

            	 
	
              I-27-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              2,504,158.82

            	 	 	
              May
                2037

            	 
	
              I-28-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              2,433,321.82

            	 	 	
              May
                2037

            	 
	
              I-28-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              2,433,321.82

            	 	 	
              May
                2037

            	 
	
              I-29-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              2,364,449.37

            	 	 	
              May
                2037

            	 
	
              I-29-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              2,364,449.37

            	 	 	
              May
                2037

            	 
	
              I-30-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              2,297,789.62

            	 	 	
              May
                2037

            	 
	
              I-30-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              2,297,789.62

            	 	 	
              May
                2037

            	 
	
              I-31-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              47,545.48

            	 	 	
              May
                2037

            	 
	
              I-31-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              47,545.48

            	 	 	
              May
                2037

            	 
	
              I-32-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              1,866,497.50

            	 	 	
              May
                2037

            	 
	
              I-32-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              1,866,497.50

            	 	 	
              May
                2037

            	 
	
              I-33-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              1,813,925.33

            	 	 	
              May
                2037

            	 
	
              I-33-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              1,813,925.33

            	 	 	
              May
                2037

            	 
	
              I-34-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              1,762,852.05

            	 	 	
              May
                2037

            	 
	
              I-34-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              1,762,852.05

            	 	 	
              May
                2037

            	 
	
              I-35-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              1,713,246.51

            	 	 	
              May
                2037

            	 
	
              I-35-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              1,713,246.51

            	 	 	
              May
                2037

            	 
	
              I-36-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              1,665,051.80

            	 	 	
              May
                2037

            	 
	
              I-36-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              1,665,051.80

            	 	 	
              May
                2037

            	 
	
              I-37-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              1,618,224.64

            	 	 	
              May
                2037

            	 
	
              I-37-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              1,618,224.64

            	 	 	
              May
                2037

            	 
	
              I-38-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              1,572,720.88

            	 	 	
              May
                2037

            	 
	
              I-38-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              1,572,720.88

            	 	 	
              May
                2037

            	 
	
              I-39-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              1,528,508.76

            	 	 	
              May
                2037

            	 
	
              I-39-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              1,528,508.76

            	 	 	
              May
                2037

            	 
	
              I-40-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              1,485,549.06

            	 	 	
              May
                2037

            	 
	
              I-40-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              1,485,549.06

            	 	 	
              May
                2037

            	 

    

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

      

    
      	
              Designation

            	 	 	
              REMIC
                II

              Remittance
                Rate

            	 	 	
              Initial

              Uncertificated
                Balance

            	 	 	
              Latest
                Possible

              Maturity
                Date(1)

            	 
	
              I-41-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              1,443,810.41

            	 	 	
              May
                2037

            	 
	
              I-41-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              1,443,810.41

            	 	 	
              May
                2037

            	 
	
              I-42-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              1,403,254.67

            	 	 	
              May
                2037

            	 
	
              I-42-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              1,403,254.67

            	 	 	
              May
                2037

            	 
	
              I-43-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              1,363,847.29

            	 	 	
              May
                2037

            	 
	
              I-43-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              1,363,847.29

            	 	 	
              May
                2037

            	 
	
              I-44-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              1,325,554.59

            	 	 	
              May
                2037

            	 
	
              I-44-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              1,325,554.59

            	 	 	
              May
                2037

            	 
	
              I-45-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              1,288,347.56

            	 	 	
              May
                2037

            	 
	
              I-45-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              1,288,347.56

            	 	 	
              May
                2037

            	 
	
              I-46-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              1,252,193.80

            	 	 	
              May
                2037

            	 
	
              I-46-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              1,252,193.80

            	 	 	
              May
                2037

            	 
	
              I-47-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              1,217,063.46

            	 	 	
              May
                2037

            	 
	
              I-47-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              1,217,063.46

            	 	 	
              May
                2037

            	 
	
              I-48-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              1,182,926.90

            	 	 	
              May
                2037

            	 
	
              I-48-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              1,182,926.90

            	 	 	
              May
                2037

            	 
	
              I-49-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              1,149,761.09

            	 	 	
              May
                2037

            	 
	
              I-49-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              1,149,761.09

            	 	 	
              May
                2037

            	 
	
              I-50-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              1,117,688.86

            	 	 	
              May
                2037

            	 
	
              I-50-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              1,117,688.86

            	 	 	
              May
                2037

            	 
	
              I-51-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              1,087,860.46

            	 	 	
              May
                2037

            	 
	
              I-51-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              1,087,860.46

            	 	 	
              May
                2037

            	 
	
              I-52-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              1,062,947.25

            	 	 	
              May
                2037

            	 
	
              I-52-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              1,062,947.25

            	 	 	
              May
                2037

            	 
	
              I-53-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              36,955,307.14

            	 	 	
              May
                2037

            	 
	
              I-53-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              36,955,307.14

            	 	 	
              May
                2037

            	 
	
              II

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              96,471,918.11

            	 	 	
              May
                2037

            	 
	
              II-1-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              5,762,048.98

            	 	 	
              May
                2037

            	 
	
              II-1-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              5,762,048.98

            	 	 	
              May
                2037

            	 
	
              II-2-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              6,184,923.84

            	 	 	
              May
                2037

            	 
	
              II-2-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              6,184,923.84

            	 	 	
              May
                2037

            	 
	
              II-3-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              6,551,759.51

            	 	 	
              May
                2037

            	 
	
              II-3-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              6,551,759.51

            	 	 	
              May
                2037

            	 
	
              II-4-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              6,677,743.08

            	 	 	
              May
                2037

            	 
	
              II-4-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              6,677,743.08

            	 	 	
              May
                2037

            	 
	
              II-5-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              6,510,762.63

            	 	 	
              May
                2037

            	 
	
              II-5-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              6,510,762.63

            	 	 	
              May
                2037

            	 
	
              II-6-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              6,344,804.57

            	 	 	
              May
                2037

            	 
	
              II-6-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              6,344,804.57

            	 	 	
              May
                2037

            	 
	
              II-7-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              6,183,080.94

            	 	 	
              May
                2037

            	 
	
              II-7-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              6,183,080.94

            	 	 	
              May
                2037

            	 
	
              II-8-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              6,025,485.05

            	 	 	
              May
                2037

            	 
	
              II-8-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              6,025,485.05

            	 	 	
              May
                2037

            	 
	
              II-9-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              5,871,909.92

            	 	 	
              May
                2037

            	 
	
              II-9-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              5,871,909.92

            	 	 	
              May
                2037

            	 
	
              II-10-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              5,722,254.03

            	 	 	
              May
                2037

            	 

    

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    
      	
              Designation

            	 	 	
              REMIC
                II

              Remittance
                Rate

            	 	 	
              Initial

              Uncertificated
                Balance

            	 	 	
              Latest
                Possible

              Maturity
                Date(1)

            	 
	
              II-10-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              5,722,254.03

            	 	 	
              May
                2037

            	 
	
              II-11-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              5,581,410.55

            	 	 	
              May
                2037

            	 
	
              II-11-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              5,581,410.55

            	 	 	
              May
                2037

            	 
	
              II-12-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              5,462,392.20

            	 	 	
              May
                2037

            	 
	
              II-12-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              5,462,392.20

            	 	 	
              May
                2037

            	 
	
              II-13-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              5,364,627.11

            	 	 	
              May
                2037

            	 
	
              II-13-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              5,364,627.11

            	 	 	
              May
                2037

            	 
	
              II-14-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              5,654,033.82

            	 	 	
              May
                2037

            	 
	
              II-14-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              5,654,033.82

            	 	 	
              May
                2037

            	 
	
              II-15-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              8,422,605.10

            	 	 	
              May
                2037

            	 
	
              II-15-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              8,422,605.10

            	 	 	
              May
                2037

            	 
	
              II-16-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              12,217,457.27

            	 	 	
              May
                2037

            	 
	
              II-16-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              12,217,457.27

            	 	 	
              May
                2037

            	 
	
              II-17-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              11,369,012.90

            	 	 	
              May
                2037

            	 
	
              II-17-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              11,369,012.90

            	 	 	
              May
                2037

            	 
	
              II-18-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              10,272,959.14

            	 	 	
              May
                2037

            	 
	
              II-18-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              10,272,959.14

            	 	 	
              May
                2037

            	 
	
              II-19-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              7,540,110.13

            	 	 	
              May
                2037

            	 
	
              II-19-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              7,540,110.13

            	 	 	
              May
                2037

            	 
	
              II-20-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              4,156,093.76

            	 	 	
              May
                2037

            	 
	
              II-20-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              4,156,093.76

            	 	 	
              May
                2037

            	 
	
              II-21-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              4,001,406.46

            	 	 	
              May
                2037

            	 
	
              II-21-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              4,001,406.46

            	 	 	
              May
                2037

            	 
	
              II-22-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              3,887,371.62

            	 	 	
              May
                2037

            	 
	
              II-22-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              3,887,371.62

            	 	 	
              May
                2037

            	 
	
              II-23-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              3,777,009.67

            	 	 	
              May
                2037

            	 
	
              II-23-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              3,777,009.67

            	 	 	
              May
                2037

            	 
	
              II-24-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              3,670,402.34

            	 	 	
              May
                2037

            	 
	
              II-24-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              3,670,402.34

            	 	 	
              May
                2037

            	 
	
              II-25-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              3,566,787.36

            	 	 	
              May
                2037

            	 
	
              II-25-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              3,566,787.36

            	 	 	
              May
                2037

            	 
	
              II-26-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              3,466,155.54

            	 	 	
              May
                2037

            	 
	
              II-26-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              3,466,155.54

            	 	 	
              May
                2037

            	 
	
              II-27-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              3,368,296.68

            	 	 	
              May
                2037

            	 
	
              II-27-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              3,368,296.68

            	 	 	
              May
                2037

            	 
	
              II-28-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              3,273,015.18

            	 	 	
              May
                2037

            	 
	
              II-28-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              3,273,015.18

            	 	 	
              May
                2037

            	 
	
              II-29-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              3,180,376.13

            	 	 	
              May
                2037

            	 
	
              II-29-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              3,180,376.13

            	 	 	
              May
                2037

            	 
	
              II-30-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              3,090,713.38

            	 	 	
              May
                2037

            	 
	
              II-30-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              3,090,713.38

            	 	 	
              May
                2037

            	 
	
              II-31-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              63,952.52

            	 	 	
              May
                2037

            	 
	
              II-31-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              63,952.52

            	 	 	
              May
                2037

            	 
	
              II-32-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              2,510,590.50

            	 	 	
              May
                2037

            	 
	
              II-32-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              2,510,590.50

            	 	 	
              May
                2037

            	 
	
              II-33-A

            	 	 	
              Variable(2

            	
               

            	
              $

            	
              2,439,876.67

            	 	 	
              May
                2037

            	 

    

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    
      	
              Designation

            	 	 	
              REMIC
                II

              Remittance
                Rate

            	 	 	
              Initial

              Uncertificated
                Balance

            	 	 	
              Latest
                Possible

              Maturity
                Date(1)

            	 
	
              II-33-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              2,439,876.67

            	 	 	
              May
                2037

            	 
	
              II-34-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              2,371,178.95

            	 	 	
              May
                2037

            	 
	
              II-34-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              2,371,178.95

            	 	 	
              May
                2037

            	 
	
              II-35-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              2,304,455.49

            	 	 	
              May
                2037

            	 
	
              II-35-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              2,304,455.49

            	 	 	
              May
                2037

            	 
	
              II-36-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              2,239,629.70

            	 	 	
              May
                2037

            	 
	
              II-36-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              2,239,629.70

            	 	 	
              May
                2037

            	 
	
              II-37-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              2,176,643.36

            	 	 	
              May
                2037

            	 
	
              II-37-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              2,176,643.36

            	 	 	
              May
                2037

            	 
	
              II-38-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              2,115,437.12

            	 	 	
              May
                2037

            	 
	
              II-38-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              2,115,437.12

            	 	 	
              May
                2037

            	 
	
              II-39-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              2,055,968.24

            	 	 	
              May
                2037

            	 
	
              II-39-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              2,055,968.24

            	 	 	
              May
                2037

            	 
	
              II-40-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              1,998,183.94

            	 	 	
              May
                2037

            	 
	
              II-40-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              1,998,183.94

            	 	 	
              May
                2037

            	 
	
              II-41-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              1,942,042.09

            	 	 	
              May
                2037

            	 
	
              II-41-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              1,942,042.09

            	 	 	
              May
                2037

            	 
	
              II-42-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              1,887,491.33

            	 	 	
              May
                2037

            	 
	
              II-42-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              1,887,491.33

            	 	 	
              May
                2037

            	 
	
              II-43-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              1,834,485.21

            	 	 	
              May
                2037

            	 
	
              II-43-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              1,834,485.21

            	 	 	
              May
                2037

            	 
	
              II-44-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              1,782,978.41

            	 	 	
              May
                2037

            	 
	
              II-44-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              1,782,978.41

            	 	 	
              May
                2037

            	 
	
              II-45-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              1,732,931.94

            	 	 	
              May
                2037

            	 
	
              II-45-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              1,732,931.94

            	 	 	
              May
                2037

            	 
	
              II-46-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              1,684,302.20

            	 	 	
              May
                2037

            	 
	
              II-46-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              1,684,302.20

            	 	 	
              May
                2037

            	 
	
              II-47-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              1,637,049.04

            	 	 	
              May
                2037

            	 
	
              II-47-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              1,637,049.04

            	 	 	
              May
                2037

            	 
	
              II-48-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              1,591,132.60

            	 	 	
              May
                2037

            	 
	
              II-48-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              1,591,132.60

            	 	 	
              May
                2037

            	 
	
              II-49-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              1,546,521.91

            	 	 	
              May
                2037

            	 
	
              II-49-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              1,546,521.91

            	 	 	
              May
                2037

            	 
	
              II-50-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              1,503,382.14

            	 	 	
              May
                2037

            	 
	
              II-50-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              1,503,382.14

            	 	 	
              May
                2037

            	 
	
              II-51-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              1,463,260.54

            	 	 	
              May
                2037

            	 
	
              II-51-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              1,463,260.54

            	 	 	
              May
                2037

            	 
	
              II-52-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              1,429,750.25

            	 	 	
              May
                2037

            	 
	
              II-52-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              1,429,750.25

            	 	 	
              May
                2037

            	 
	
              II-53-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              49,707,884.86

            	 	 	
              May
                2037

            	 
	
              II-53-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              49,707,884.86

            	 	 	
              May
                2037

            	 
	
              P

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              100.00

            	 	 	
              May
                2037

            	 
	
              I-CE-2

            	 	 	
              Variable(2)

            	
               

            	 	
              (3

            	
              )

            	 	
              May
                2037

            	 

    

    

      
        

      

    

    
      	
              (1)

            	
              For
                purposes of Section 1.860G-1(a)(4)(iii) of the Treasury regulations,
                the
                Distribution Date immediately following the maturity date for the
                Mortgage
                Loan with the latest maturity date has been designated as the “latest
                possible maturity date” for each REMIC II Regular
                Interest.

            

    

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    
      	
              (2)

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

            

    

     

    
      	
              (3)

            	
              REMIC
                II Regular Interest I-CE-2 will not have an Uncertificated Balance,
                but
                will accrue interest on its Notional Amount equal to the Notional
                Amounts
                of REMIC I Regular Interest LTCE2G and REMIC I Regular Interest
                LTCE2C.

            

    

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    REMIC
      III

     

    As
      provided herein, the Securities Administrator will elect to treat the segregated
      pool of assets consisting of the REMIC II Regular Interests as a REMIC for
      federal income tax purposes, and such segregated pool of assets will be
      designated as “REMIC III.” The Class R-III Interest will evidence the sole class
      of “residual interests” in REMIC III for purposes of the REMIC Provisions. The
      following table irrevocably sets forth the designation, the Pass-Through Rate,
      the initial aggregate Certificate Principal Balance and, for purposes of
      satisfying Treasury regulation Section 1.860G-1(a)(4)(iii), the “latest possible
      maturity date” for the indicated Classes of Certificates. 

     

    
      	
              Designation

            	 	 	
              REMIC
                III 

              Remittance
                Rate

            	 	 	
              Initial

              Uncertificated
                Balance

            	 	 	
              Latest
                Possible

              Maturity
                Date (1)

            	 
	
              AA

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              532,072,621.12

            	 	 	
              May
                2037

            	 
	
              A-1

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              225,000.00

            	 	 	
              May
                2037

            	 
	
              A-2A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              1,081,155.00

            	 	 	
              May
                2037

            	 
	
              A-2B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              431,825.00

            	 	 	
              May
                2037

            	 
	
              A-2C

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              707,880.00

            	 	 	
              May
                2037

            	 
	
              A-2D

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              186,285.00

            	 	 	
              May
                2037

            	 
	
              M-1

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              168,670.00

            	 	 	
              May
                2037

            	 
	
              M-2

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              115,800.00

            	 	 	
              May
                2037

            	 
	
              M-3

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              80,555.00

            	 	 	
              May
                2037

            	 
	
              M-4

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              83,075.00

            	 	 	
              May
                2037

            	 
	
              M-5

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              70,490.00

            	 	 	
              May
                2037

            	 
	
              M-6

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              75,520.00

            	 	 	
              May
                2037

            	 
	
              M-7

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              57,900.00

            	 	 	
              May
                2037

            	 
	
              M-8

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              50,350.00

            	 	 	
              May
                2037

            	 
	
              M-9

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              52,865.00

            	 	 	
              May
                2037

            	 
	
              ZZ

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              7,471,254.92

            	 	 	
              May
                2037

            	 
	
              P

            	 	 	
              Variable(2)(3)

            	
               

            	
              $

            	
              100.00

            	 	 	
              May
                2037

            	 
	
              IO

            	 	 	
              Variable(2)

            	
               

            	 	
              (4)

            	
               

            	 	
              May
                2037

            	 
	
              I-SUB

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              41,803.83

            	 	 	
              May
                2037

            	 
	
              I-GRP

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              45,165.23

            	 	 	
              May
                2037

            	 
	
              II-SUB

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              17,865.22

            	 	 	
              May
                2037

            	 
	
              II-GRP

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              61,233.48

            	 	 	
              May
                2037

            	 
	
              XX

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              542,765,178.27

            	 	 	
              May
                2037

            	 
	
              CE-2

            	 	 	
              (5)

            	
               

            	 	
              (6)

            	
               

            	 	
              May
                2037

            	 

    

     

    
      

    

    
      	
              (1)

            	
              For
                purposes of Section 1.860G-1(a)(4)(iii) of the Treasury regulations,
                the
                Distribution Date immediately following the maturity date for the
                Mortgage
                Loan with the latest maturity date has been designated as the “latest
                possible maturity date” for each REMIC III Regular
                Interest.

            

    

     

    
      	
              (2)

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

            

    

     

    
      	
              (3)

            	
              REMIC
                III Regular Interest P will be entitled to 100% of the Prepayment
                Charges.

            

    

     

    
      	
              (4)

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

            

    

     

    
      	
              (5)

            	
              REMIC
                III Regular Interest CE-2 will not have a REMIC III Remittance Rate,
                but
                will be entitled to 100% of the amounts distributed on REMIC II Regular
                Interest I-CE-20 and REMIC II Regular Interest
                I-CE-2G.

            

    

     

    
      	
              (6)

            	
              For
                federal income tax purposes, the REMIC III Regular Interest CE-2
                will not
                have an Uncertificated Balance, but will have a Notional Amount equal
                to
                the Notional Amount of REMIC II Regular Interest
                I-CE-2.

            

    

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    REMIC
      IV

     

    As
      provided herein, the Securities Administrator will elect to treat the segregated
      pool of assets consisting of the REMIC III Regular Interests as a REMIC for
      federal income tax purposes, and such segregated pool of assets will be
      designated as “REMIC IV.” The Class R-IV Interest will evidence the sole class
      of “residual interests” in REMIC IV for purposes of the REMIC Provisions. The
      following table irrevocably sets forth the designation, the Pass-Through Rate,
      the initial aggregate Certificate Principal Balance and, for purposes of
      satisfying Treasury regulation Section 1.860G-1(a)(4)(iii), the “latest possible
      maturity date” for the indicated Classes of Certificates.

     

    
      	
              Designation

            	 	
              Pass-Through
                Rate

            	 	
              Initial
                Aggregate Certificate Principal Balance

            	 	
              Latest
                Possible

              Maturity
                Date (1)

            	 
	
              Class
                A-1

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              45,000,000.00

            	 	 	
              May
                2037

            	 
	
              Class
                A-2A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              216,231,000.00

            	 	 	
              May
                2037

            	 
	
              Class
                A-2B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              86,365,000.00

            	 	 	
              May
                2037

            	 
	
              Class
                A-2C

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              141,576,000.00

            	 	 	
              May
                2037

            	 
	
              Class
                A-2D

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              37,257,000.00

            	 	 	
              May
                2037

            	 
	
              Class
                M-1

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              33,734,000.00

            	 	 	
              May
                2037

            	 
	
              Class
                M-2

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              23,160,000.00

            	 	 	
              May
                2037

            	 
	
              Class
                M-3

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              16,111,000.00

            	 	 	
              May
                2037

            	 
	
              Class
                M-4

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              16,615,000.00

            	 	 	
              May
                2037

            	 
	
              Class
                M-5

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              14,098,000.00

            	 	 	
              May
                2037

            	 
	
              Class
                M-6

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              15,104,000.00

            	 	 	
              May
                2037

            	 
	
              Class
                M-7

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              11,580,000.00

            	 	 	
              May
                2037

            	 
	
              Class
                M-8

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              10,070,000.00

            	 	 	
              May
                2037

            	 
	
              Class
                M-9

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              10,573,000.00

            	 	 	
              May
                2037

            	 
	
              Class
                P 

            	 	 	
              N/A(3)

            	
               

            	
              $

            	
              100.00

            	 	 	
              May
                2037

            	 
	
              Class
                CE-1

            	 	 	
              (4)

            	
               

            	
              $

            	
              408,388,492.08

            	 	 	
              May
                2037

            	 
	
              Class
                CE-2

            	 	 	
              (5)

            	
               

            	 	
              (6)

            	
               

            	 	
              May
                2037

            	 
	
              Class
                IO Interest 

            	 	 	
              (7)

            	
               

            	 	
              (7)

            	
               

            	 	
              May
                2037

            	 

    

    

    
      
        

      

    

    
      	(1)	
              For
                purposes of Section 1.860G-1(a)(4)(iii) of the Treasury regulations,
                the
                Distribution Date immediately following the maturity date for the
                Mortgage
                Loan with the latest maturity date has been designated as the “latest
                possible maturity date” for each Class of
                Certificates.

            

    

     

    
      	(2)	
              Calculated
                in accordance with the definition of “Pass-Through Rate”
                herein.

            

    

     

    
      	(3)	
              The
                Class P Certificates will not accrue
                interest.

            

    

     

    
      	(4)	
              The
                Class CE-1 Certificates will accrue interest at their variable
                Pass-Through Rate on the Notional Amount of the Class CE-1 Certificates
                outstanding from time to time which shall equal the Uncertificated
                Balance
                of the REMIC III Regular Interests (other than REMIC III Regular
                Interest
                P). The Class CE-1 Certificates will not accrue interest on their
                Certificate Principal Balance.

            

    

     

    
      	(5)	
              The
                Class CE-2 Certificates are an interest only class and for each
                Distribution Date the Class CE-2 Certificates will be entitled to
                receive
                100% of the amounts distributed on REMIC III Regular Interest
                CE-2.

            

    

     

    
      	(6)	
              For
                federal income tax purposes, the Class CE-2 Certificates will not
                have a
                Certificate Principal Balance, but will have a Notional Amount equal
                to
                the Notional Amount of REMIC III Regular Interest
                CE-2.

            

    

     

    
      	(7)	
              The
                Class IO Interest will not have a Pass-Through Rate or a Certificate
                Principal Balance, but will be entitled to 100% of amounts distributed
                on
                REMIC III Regular Interest IO.

            

    

     

    The
      Mortgage Loans had an aggregate Scheduled Principal Balance as of the Cut-off
      Date, after deducting all Monthly Payments due on or before the Cut-off Date,
      of
      $1,063,987,175.00. As of the Cut-off Date, the Group I Mortgage Loans had an
      aggregate Scheduled Principal Balance equal to $451,652,331.00 and the Group
      II
      Mortgage Loans had an aggregate Scheduled Principal Balance equal to
      $612,334,844.00.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

       

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

    

     

    ARTICLE
      I

     

    DEFINITIONS

     

    SECTION
      1.01. Defined
      Terms.

     

    Whenever
      used in this Agreement, including, without limitation, in the Preliminary
      Statement hereto, the following words and phrases, unless the context otherwise
      requires, shall have the meanings specified in this Article. Unless otherwise
      specified, all calculations described herein shall be made on the basis of
      a
      360-day year consisting of twelve 30-day months.

     

    “Accepted
      Master Servicing Practices”:
      With
      respect to any Mortgage Loan, as applicable, either (x) those customary mortgage
      master servicing practices of prudent mortgage servicing institutions that
      master service mortgage loans of the same type and quality as such Mortgage
      Loan
      in the jurisdiction where the related Mortgaged Property is located, to the
      extent applicable to the Master Servicer (except in its capacity as successor
      to
      a Servicer), or (y) as provided in Section 3.01 hereof, but in no event below
      the standard set forth in clause (x).

     

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

     

    “Account”:
      Any
      Collection Accounts, the Distribution Account and the Pre-Funding Account as
      the
      context may require.

     

    “Accrued
      Certificate Interest”:
      With
      respect to any Class A Certificate, Mezzanine Certificate, Class CE-1
      Certificate or CE-2 Certificate and each Distribution Date, interest accrued
      during the related Interest Accrual Period at the Pass-Through Rate for such
      Certificate for such Distribution Date on the Certificate Principal Balance,
      in
      the case of the Class A Certificates and the Mezzanine Certificates, or on
      the
      Notional Amount in the case of the Class CE-1 Certificates and Class CE-2
      Certificates, of such Certificate immediately prior to such Distribution Date.
      The Class P Certificates are not entitled to distributions in respect of
      interest and, accordingly, will not accrue interest. All distributions of
      interest on the Class A Certificates and the Mezzanine Certificates will be
      calculated on the basis of a 360-day year and the actual number of days in
      the
      applicable Interest Accrual Period. All distributions of interest on the Class
      CE-1 Certificates will be based on a 360-day year consisting of twelve 30-day
      months. Accrued Certificate Interest with respect to each Distribution Date,
      as
      to any Class A Certificate, Mezzanine Certificate or Class CE-1 Certificate
      shall be reduced by an amount equal to the portion allocable to such Certificate
      pursuant to Section 1.02 hereof, if any, of the sum of (a) the aggregate
      Prepayment Interest Shortfall, if any, for such Distribution Date to the extent
      not covered by payments pursuant to Section 3.23 or Section 4.19 of this
      Agreement or pursuant to the Servicing Agreement and (b) the aggregate amount
      of
      any Relief Act Interest Shortfall, if any, for such Distribution Date. In
      addition, Accrued Certificate Interest with respect to each Distribution Date,
      as to any Class CE-1 Certificate, shall be reduced by an amount equal to the
      portion allocable to such Class CE-1 Certificate of Realized Losses, if any,
      pursuant to Section 1.02 and Section 5.04 hereof.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    “Addition
      Notice”:
      With
      respect to the transfer of Subsequent Mortgage Loans to the Trust Fund pursuant
      to Section 2.09, a notice of the Depositor’s designation of the Subsequent
      Mortgage Loans to be sold to the Trust Fund and the aggregate principal balance
      of such Subsequent Mortgage Loans as of the related Cut-off Date. The Addition
      Notice shall be given not later than five (5) Business Days prior to the related
      Subsequent Transfer Date and shall be substantially in the form attached hereto
      as Exhibit L.

     

    “Additional
      Disclosure Notification”:
      Has
      the meaning set forth in Section 5.06(a). 

     

    “Additional
      Form 10-D Disclosure”:
      Has
      the meaning set forth in Section 5.06(a) of this Agreement.

     

    “Additional
      Form 10-K Disclosure”:
      Has
      the meaning set forth in Section 5.06(d) of this Agreement. 

     

    “Additional
      Servicer”:
      Means
      each affiliate of a Servicer that Services any of the Mortgage Loans and each
      Person who is not an affiliate of the related Servicer. For clarification
      purposes, the Master Servicer and the Securities Administrator are Additional
      Servicers.

     

    “Adjustable
      Rate Mortgage Loan”:
      Each
      of the Mortgage Loans identified in the Mortgage Loan Schedule as having a
      Mortgage Rate that is subject to adjustment.

     

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

     

    “Administration
      Fees”:
      The
      sum of (i) the related Servicing Fee, (ii) the Master Servicing Fee and (iii)
      the Credit Risk Management Fee.

     

    “Administration
      Fee Rate”:
      The
      sum of (i) the Servicing Fee Rate, (ii) the Master Servicing Fee Rate and (iii)
      the Credit Risk Management Fee Rate. 

     

    “Advance
      Facility”:
      As
      defined in Section 3.26(a).

     

    “Advance
      Financing Person”:
      As
      defined in Section 3.26(a).

     

    “Advance
      Reimbursement Amounts”:
      As
      defined in Section 3.26(b).

     

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

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    “Aggregate
      Loss Severity Percentage”:
      With
      respect to any Distribution Date, the percentage equivalent of a fraction,
      the
      numerator of which is the aggregate amount of Realized Losses incurred on any
      Mortgage Loans from the Cut-off Date to the last day of the preceding calendar
      month and the denominator of which is the aggregate principal balance of such
      Mortgage Loans immediately prior to the liquidation of such Mortgage
      Loans.

     

    “Agreement”:
      This
      Pooling and Servicing Agreement, including all exhibits and schedules hereto
      and
      all amendments hereof and supplements hereto.

     

    “Allocated
      Realized Loss Amount”:
      With
      respect to any Class of Mezzanine Certificates and any Distribution Date, an
      amount equal to the sum of any Realized Loss allocated to that Class of
      Certificates on the Distribution Date and any Allocated Realized Loss Amount
      for
      that Class remaining unpaid from the previous Distribution Date.

     

    “Amounts
      Held for Future Distribution”:
      As to
      any Distribution Date, the aggregate amount held in the related Collection
      Account at the close of business on the immediately preceding Determination
      Date
      on account of (i) all Monthly Payments or portions thereof received in respect
      of the Mortgage Loans due after the related Due Period and (ii) Principal
      Prepayments and Liquidation Proceeds received in respect of such Mortgage Loans
      after the last day of the related Prepayment Period.

     

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

     

    “Assignment”:
      An
      assignment of Mortgage, notice of transfer or equivalent instrument, in
      recordable form, which is sufficient under the laws of the jurisdiction where
      the related Mortgaged Property is located to reflect of record the sale and
      assignment of the Mortgage, which assignment, notice of transfer or equivalent
      instrument may be in the form of one or more blanket assignments covering
      Mortgages secured by Mortgaged Properties located in the same county, if
      permitted by law.

     

    “Assignment
      Agreement”:
      The
      Assignment, Assumption and Recognition Agreement, dated as of April 30, 2007,
      by
      and among the Sponsor, the Depositor and Countrywide evidencing the assignment
      of the Servicing Agreement to the extent of the servicing of the Countrywide
      Mortgage Loans, to the Depositor, a copy of which is attached hereto as Exhibit
      N.

     

    “Authorized
      Officers”:
      A
      managing director of the whole loan trading desk and a managing director in
      global markets.

     

    “Available
      Distribution Amount”:
      With
      respect to any Distribution Date, an amount equal to (1) the sum of (a) the
      aggregate of the amounts on deposit in the Collection Accounts and the
      Distribution Account as of the close of business on the related Servicer
      Remittance Date, (b) the aggregate of any amounts deposited in the Distribution
      Account by the Servicer or the Master Servicer in respect of Prepayment Interest
      Shortfalls for such Distribution Date pursuant to Section 3.23 or Section 4.19
      of this Agreement or pursuant to the Servicing Agreement, (c) the aggregate
      of
      any P&I Advances for such Distribution Date made by the Servicers pursuant
      to Section 5.03 of this Agreement or pursuant to the Servicing Agreement (d)
      the
      aggregate of any P&I Advances made by a successor to a Servicer (including
      the Master Servicer) for such Distribution Date pursuant to Section 8.02 of
      this
      Agreement or pursuant to the Servicing Agreement, and (e) with respect to any
      Distribution Date during the Pre-Funding Period, any amounts required to be
      deposited into the Distribution Account from the Capitalized Interest Account
      pursuant to Section 3.28 of this Agreement, and with respect to the Distribution
      Date immediately following the termination of the Pre-Funding Period, any
      Remaining Pre-Funded Amount reduced (to an amount not less than zero) by (2)
      the
      portion of the amount described in clause (1)(a) above that represents (i)
      Amounts Held for Future Distribution, (ii) Principal Prepayments on the Mortgage
      Loans received after the related Prepayment Period (together with any interest
      payments received with such Principal Prepayments to the extent they represent
      the payment of interest accrued on the Mortgage Loans during a period subsequent
      to the related Prepayment Period), (iii) Liquidation Proceeds, Insurance
      Proceeds and Subsequent Recoveries received in respect of the Mortgage Loans
      after the related Prepayment Period, (iv) amounts reimbursable or payable to
      the
      Depositor, the Servicers, the Trustee, the Master Servicer, the Securities
      Administrator, the Credit Risk Manager or the Custodians pursuant to Section
      3.09 or 9.05 of this Agreement or otherwise payable in respect of Extraordinary
      Trust Fund Expenses or reimbursable or payable under the Servicing Agreement,
      (v) the Credit Risk Management Fee, (vi) amounts deposited in a Collection
      Account or the Distribution Account in error, (vii) the amount of any Prepayment
      Charges collected by the Servicers in connection with the Principal Prepayment
      of any of the Mortgage Loans and (viii) amounts reimbursable to a successor
      Servicer (including the Master Servicer) pursuant to Section 8.02 of this
      Agreement. 

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    “Balloon
      Mortgage Loan”:
      A
      Mortgage Loan that provides for the payment of the unamortized principal balance
      of such Mortgage Loan in a single payment, that is substantially greater than
      the preceding monthly payment at the maturity of such Mortgage
      Loan.

     

    “Balloon
      Payment”:
      A
      payment of the unamortized principal balance of a Mortgage Loan in a single
      payment, that is substantially greater than the preceding Monthly Payment at
      the
      maturity of such Mortgage Loan.

     

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

     

    “Book-Entry
      Certificates”:
      The
      Class A Certificates and Mezzanine Certificates for so long as the Certificates
      of such Class shall be registered in the name of the Depository or its
      nominee.

     

    “Book-Entry
      Custodian”:
      The
      custodian appointed pursuant to Section 6.01.

     

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

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

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

     

    “Cap
      Counterparty”:
      The
      counterparty under each Cap Contract. Initially, the Cap Counterparty shall
      be
      Deutsche Bank AG, New York Branch.

     

    “Cash-Out
      Refinancing”:
      A
      Refinanced Mortgage Loan the proceeds of which are more than a nominal amount
      in
      excess of the principal balance of any existing first mortgage plus any
      subordinate mortgage on the related Mortgaged Property and related closing
      costs.

     

    “Certificate”:
      Any
      one of ACE Securities Corp., Asset Backed Pass-Through Certificates, Series
      2007-HE4, Class A-1, Class A-2A, Class A-2B, Class A-2C, Class A-2D, Class
      M-1,
      Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class M-7, Class M-8,
      Class M-9, Class P, Class CE-1, Class CE-2 and Class R Certificates issued
      under
      this Agreement. 

     

    “Certificate
      Factor”:
      With
      respect to any Class of Certificates (other than the Residual Certificates)
      as
      of any Distribution Date, a fraction, expressed as a decimal carried to six
      places, the numerator of which is the aggregate Certificate Principal Balance
      (or Notional Amount, in the case of the Class CE-1 Certificates and Class CE-2
      Certificates) of such Class of Certificates on such Distribution Date (after
      giving effect to any distributions of principal and allocations of Realized
      Losses resulting in reduction of the Certificate Principal Balance (or Notional
      Amount, in the case of the Class CE-1 Certificates and Class CE-2 Certificates)
      of such Class of Certificates to be made on such Distribution Date), and the
      denominator of which is the initial aggregate Certificate Principal Balance
      (or
      Notional Amount, in the case of the Class CE-1 Certificates and Class CE-2
      Certificates) of such Class of Certificates as of the Closing Date.

     

    “Certificate
      Margin”:
      With
      respect to the Class A-1 Certificates and, for purposes of the definition of
      “Marker Rate”, REMIC III Regular Interest A-1, 0.22% in the case of each
      Distribution Date through and including the Optional Termination Date and 0.44%
      in the case of each Distribution Date thereafter.

     

    With
      respect to the Class A-2A Certificates and, for purposes of the definition
      of
“Marker Rate”, REMIC III Regular Interest A-2A, 0.13% in the case of each
      Distribution Date through and including the Optional Termination Date and 0.26%
      in the case of each Distribution Date thereafter.

     

    With
      respect to the Class A-2B Certificates and, for purposes of the definition
      of
“Marker Rate”, REMIC III Regular Interest A-2B, 0.24% in the case of each
      Distribution Date through and including the Optional Termination Date and 0.48%
      in the case of each Distribution Date thereafter.

     

    With
      respect to the Class A-2C Certificates and, for purposes of the definition
      of
“Marker Rate”, REMIC III Regular Interest A-2C, 0.30% in the case of each
      Distribution Date through and including the Optional Termination Date and 0.60%
      in the case of each Distribution Date thereafter.

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    With
      respect to the Class A-2D Certificates and, for purposes of the definition
      of
“Marker Rate”, REMIC III Regular Interest A-2D, 0.36% in the case of each
      Distribution Date through and including the Optional Termination Date and 0.72%
      in the case of each Distribution Date thereafter.

     

    With
      respect to the Class M-1 Certificates and, for purposes of the definition of
      “Marker Rate”, REMIC III Regular Interest M-1, 0.47% in the case of each
      Distribution Date through and including the Optional Termination Date and 0.705%
      in the case of each Distribution Date thereafter.

     

    With
      respect to the Class M-2 Certificates and, for purposes of the definition of
      “Marker Rate”, REMIC III Regular Interest M-2, 0.55% in the case of each
      Distribution Date through and including the Optional Termination Date and 0.825%
      in the case of each Distribution Date thereafter.

     

    With
      respect to the Class M-3 Certificates and, for purposes of the definition of
      “Marker Rate”, REMIC III Regular Interest M-3, 0.70% in the case of each
      Distribution Date through and including the Optional Termination Date and 1.05%
      in the case of each Distribution Date thereafter.

     

    With
      respect to the Class M-4 Certificates and, for purposes of the definition of
      “Marker Rate”, REMIC III Regular Interest M-4, 1.25% in the case of each
      Distribution Date through and including the Optional Termination Date and 1.75%
      in the case of each Distribution Date thereafter.

     

    With
      respect to the Class M-5 Certificates and, for purposes of the definition of
      “Marker Rate”, REMIC III Regular Interest M-5, 1.60% in the case of each
      Distribution Date through and including the Optional Termination Date and 2.10%
      in the case of each Distribution Date thereafter.

     

    With
      respect to the Class M-6 Certificates and, for purposes of the definition of
      “Marker Rate”, REMIC III Regular Interest M-6, 1.90% in the case of each
      Distribution Date through and including the Optional Termination Date and 2.40%
      in the case of each Distribution Date thereafter.

     

    With
      respect to the Class M-7 Certificates and, for purposes of the definition of
      “Marker Rate”, REMIC III Regular Interest M-7, 2.50% in the case of each
      Distribution Date through and including the Optional Termination Date and 3.00%
      in the case of each Distribution Date thereafter.

     

    With
      respect to the Class M-8 Certificates and, for purposes of the definition of
      “Marker Rate”, REMIC III Regular Interest 2.50% in the case of each Distribution
      Date through and including the Optional Termination Date and 3.00% in the case
      of each Distribution Date thereafter.

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    With
      respect to the Class M-9 Certificates and, for purposes of the definition of
      “Marker Rate”, REMIC III Regular Interest M-9, 2.50% in the case of each
      Distribution Date through and including the Optional Termination Date and 3.00%
      in the case of each Distribution Date thereafter.

     

    “Certificateholder”
or
      “Holder”:
      The
      Person in whose name a Certificate is registered in the Certificate Register,
      except that a Disqualified Organization or a Non-United States Person shall
      not
      be a Holder of a Residual Certificate for any purposes hereof, and solely for
      the purposes of giving any consent pursuant to this Agreement, any Certificate
      registered in the name of or beneficially owned by the Depositor, the Sponsor,
      a
      Servicer, the Master Servicer, the Securities Administrator, the Trustee or
      any
      Affiliate thereof shall be deemed not to be outstanding and the Voting Rights
      to
      which it is entitled shall not be taken into account in determining whether
      the
      requisite percentage of Voting Rights necessary to effect any such consent
      has
      been obtained, except as otherwise provided in Section 12.01. The Trustee and
      the Securities Administrator may conclusively rely upon a certificate of the
      Depositor, the Sponsor, the Master Servicer, the Securities Administrator or
      a
      Servicer in determining whether a Certificate is held by an Affiliate thereof.
      All references herein to “Holders” or “Certificateholders” shall reflect the
      rights of Certificate Owners as they may indirectly exercise such rights through
      the Depository and participating members thereof, except as otherwise specified
      herein; provided, however, that the Trustee, the Securities Administrator and
      the NIMS Insurer shall be required to recognize as a “Holder” or
“Certificateholder” only the Person in whose name a Certificate is registered in
      the Certificate Register.

     

    “Certificate
      Owner”:
      With
      respect to a Book-Entry Certificate, the Person who is the beneficial owner
      of
      such Certificate as reflected on the books of the Depository or on the books
      of
      a Depository Participant or on the books of an indirect participating brokerage
      firm for which a Depository Participant acts as agent.

     

    “Certificate
      Principal Balance”:
      With
      respect to each Class A Certificate, Mezzanine Certificate or Class P
      Certificate as of any date of determination, the Certificate Principal Balance
      of such Certificate on the Distribution Date immediately prior to such date
      of
      determination plus any Subsequent Recoveries added to the Certificate Principal
      Balance of such Certificate (other than a Class P Certificate) pursuant to
      Section 5.04, minus (i) all distributions allocable to principal made thereon
      and (ii) Realized Losses allocated thereto, if any, on such immediately prior
      Distribution Date (or, in the case of any date of determination up to and
      including the first Distribution Date, the initial Certificate Principal Balance
      of such Certificate, as stated on the face thereof). With respect to each Class
      CE-1 Certificate as of any date of determination, an amount equal to the
      Percentage Interest evidenced by such Certificate times the excess, if any,
      of
      (A) the then aggregate Uncertificated Balances of the REMIC II Regular Interests
      over (B) the then aggregate Certificate Principal Balances of the Class A
      Certificates, the Mezzanine Certificates and the Class P Certificates then
      outstanding. The aggregate initial Certificate Principal Balance of each Class
      of Regular Certificates is set forth in the Preliminary Statement
      hereto.

     

    “Certificate
      Register”:
      The
      register maintained pursuant to Section 6.02.

     

    
      
        
        

      

      
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    “Certification
      Parties”:
      Has
      the meaning set forth in Section 3.20 of this Agreement.

     

    “Certifying
      Person”:
      Has
      the meaning set forth in Section 3.20 of this Agreement.

     

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

     

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

     

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

     

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

     

    “Class
      A-1 Certificate”:
      Any
      one of the Class A-1 Certificates executed and authenticated by the Securities
      Administrator and delivered by the Trustee, substantially in the form annexed
      hereto as Exhibit A-1 and evidencing (i) a Regular Interest in REMIC IV, (ii)
      the right to receive the related Net WAC Rate Carryover Amount and (iii) the
      obligation to pay any Class IO Distribution Amount.

     

    “Class
      A-1 Principal Distribution Amount”:
      With
      respect to any Distribution Date on or after the Stepdown Date and on which
      a
      Trigger Event is not in effect, the excess of (x) the Certificate Principal
      Balance of the Class A-1 Certificates immediately prior to such Distribution
      Date over (y) the lesser of (A) the product of (i) 41.80% and (ii) the aggregate
      Stated Principal Balance of the Group I Mortgage Loans as of the last day of
      the
      related Due Period (after giving effect to scheduled payments of principal
      due
      during the related Due Period, to the extent received or advanced and
      unscheduled collections of principal received during the related Prepayment
      Period) and (B) the aggregate Stated Principal Balance of the Group I Mortgage
      Loans as of the last day of the related Due Period (after giving effect to
      scheduled payments of principal due during the related Due Period, to the extent
      received or advanced and unscheduled collections of principal received during
      the related Prepayment Period) minus the product of (i) 0.50% and (ii) the
      aggregate principal balance of the Group I Mortgage Loans as of the Cut-off
      Date
      (which includes the aggregate principal balance of the Identified Subsequent
      Mortgage Loans).

     

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

     

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

     

    
      
        
        

      

      
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    “Class
      A-2 Principal Distribution Amount”:
      With
      respect to any Distribution Date on or after the Stepdown Date and on which
      a
      Trigger Event is not in effect, the excess of (x) the sum of the Certificate
      Principal Balances of the Class A-2 A, Class A-2B, Class A-2C or Class A-2D
      Certificates immediately prior to such Distribution Date over (y) the lesser
      of
      (A) the product of (i) 41.80% and (ii) the aggregate Stated Principal Balance
      of
      the Group II Mortgage Loans as of the last day of the related Due Period (after
      giving effect to scheduled payments of principal due during the related Due
      Period, to the extent received or advanced and unscheduled collections of
      principal received during the related Prepayment Period) and (B) the aggregate
      Stated Principal Balance of the Group II Mortgage Loans as of the last day
      of
      the related Due Period (after giving effect to scheduled payments of principal
      due during the related Due Period, to the extent received or advanced and
      unscheduled collections of principal received during the related Prepayment
      Period) minus the product of (i) 0.50% and (ii) the aggregate principal balance
      of the Group II Mortgage Loans as of the Cut-off Date (which includes the
      aggregate principal balance of the Identified Subsequent Mortgage
      Loans).

     

    “Class
      A-2A Certificate”:
      Any
      one of the Class A-2A Certificates executed and authenticated by the Securities
      Administrator and delivered by the Trustee, substantially in the form annexed
      hereto as Exhibit A-1 and evidencing (i) a Regular Interest in REMIC IV, (ii)
      the right to receive the related Net WAC Rate Carryover Amount and (iii) the
      obligation to pay any Class IO Distribution Amount.

     

    “Class
      A-2B Certificate”:
      Any
      one of the Class A-2B Certificates executed and authenticated by the Securities
      Administrator and delivered by the Trustee, substantially in the form annexed
      hereto as Exhibit A-1 and evidencing (i) a Regular Interest in REMIC IV, (ii)
      the right to receive the related Net WAC Rate Carryover Amount and (iii) the
      obligation to pay any Class IO Distribution Amount.

     

    “Class
      A-2C Certificate”:
      Any
      one of the Class A-2C Certificates executed and authenticated by the Securities
      Administrator and delivered by the Trustee, substantially in the form annexed
      hereto as Exhibit A-1 and evidencing (i) a Regular Interest in REMIC III, (ii)
      the right to receive the related Net WAC Rate Carryover Amount and (iii) the
      obligation to pay any Class IO Distribution Amount.

     

    “Class
      A-2D Certificate”:
      Any
      one of the Class A-2D Certificates executed and authenticated by the Securities
      Administrator and delivered by the Trustee, substantially in the form annexed
      hereto as Exhibit A-1 and evidencing (i) a Regular Interest in REMIC IV, (ii)
      the right to receive the related Net WAC Rate Carryover Amount and (iii) the
      obligation to pay any Class IO Distribution Amount.

     

    “Class
      CE-1 Certificate”:
      Any
      one of the Class CE-1 Certificates executed and authenticated by the Securities
      Administrator and delivered by the Trustee, substantially in the form annexed
      hereto as Exhibit A-3 and evidencing (i) a Regular Interest in REMIC IV, (ii)
      beneficial ownership of the Reserve Fund and (iii) beneficial ownership of
      the
      Supplemental Interest Trust.

     

    “Class
      CE-2 Certificate”:
      Any
      one of the Class CE-2 Certificates executed and authenticated by the Securities
      Administrator and delivered by the Trustee, substantially in the form annexed
      hereto as Exhibit A-3 and evidencing a Regular Interest in REMIC IV for purposes
      of the REMIC Provisions.

     

    
      
        
        

      

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

     

    “Class
      IO Interest”:
      An
      uncertificated interest in the Trust Fund held by the Trustee, evidencing a
      REMIC Regular Interest in REMIC III for purposes of the REMIC
      Provisions.

     

    “Class
      M-1 Certificate”:
      Any
      one of the Class M-1 Certificates executed and authenticated by the Securities
      Administrator and delivered by the Trustee, substantially in the form annexed
      hereto as Exhibit A-2 and evidencing (i) a Regular Interest in REMIC IV, (ii)
      the right to receive the related Net WAC Rate Carryover Amount and (iii) the
      obligation to pay any Class IO Distribution Amount.

     

    “Class
      M-1 Principal Distribution Amount”:
      With
      respect to any Distribution Date on or after the Stepdown Date and on which
      a
      Trigger Event is not in effect, the excess of (x) the sum of (i) the aggregate
      Certificate Principal Balance of the Class A Certificates after taking into
      account the payment of the Class A Principal Distribution Amount on the
      Distribution Date and (ii) the Certificate Principal Balance of the Class M-1
      Certificates immediately prior to the Distribution Date over (y) the lesser
      of
      (A) the product of (i) 51.60% and (ii) the aggregate Stated Principal Balance
      of
      the Mortgage Loans as of the last day of the related Due Period (after giving
      effect to scheduled payments of principal due during the related Due Period,
      to
      the extent received or advanced, and unscheduled collections of principal
      received during the related Prepayment Period) and (B) the aggregate Stated
      Principal Balance of the Mortgage Loans as of the last day of the related Due
      Period (after giving effect to scheduled payments of principal due during the
      related Due Period, to the extent received or advanced, and unscheduled
      collections of principal received during the related Prepayment Period) minus
      the product of (i) 0.50% and (ii) the aggregate principal balance of the
      Mortgage Loans as of the Cut-off Date (which includes the aggregate principal
      balance of the Identified Subsequent Mortgage Loans).

     

    “Class
      M-2 Certificate”:
      Any
      one of the Class M-2 Certificates executed and authenticated by the Securities
      Administrator and delivered by the Trustee, substantially in the form annexed
      hereto as Exhibit A-2 and evidencing (i) a Regular Interest in REMIC IV, (ii)
      the right to receive the related Net WAC Rate Carryover Amount and (iii) the
      obligation to pay any Class IO Distribution Amount.

     

    “Class
      M-2 Principal Distribution Amount”:
      With
      respect to any Distribution Date on or after the Stepdown Date and on which
      a
      Trigger Event is not in effect, the excess of (x) the sum of (i) the aggregate
      Certificate Principal Balance of the Class A Certificates after taking into
      account the payment of the Class A Principal Distribution Amount on the
      Distribution Date, (ii) the Certificate Principal Balance of the Class M-1
      Certificates after taking into account the payment of the Class M-1 Principal
      Distribution Amount on the Distribution Date and (iii) the Certificate Principal
      Balance of the Class M-2 Certificates immediately prior to the Distribution
      Date
      over (y) the lesser of (A) the product of (i) 60.50% and (ii) the aggregate
      Stated Principal Balance of the Mortgage Loans as of the last day of the related
      Due Period (after giving effect to scheduled payments of principal due during
      the related Due Period, to the extent received or advanced, and unscheduled
      collections of principal received during the related Prepayment Period) and
      (B)
      the aggregate Stated Principal Balance of the Mortgage Loans as of the last
      day
      of the related Due Period (after giving effect to scheduled payments of
      principal due during the related Due Period, to the extent received or advanced,
      and unscheduled collections of principal received during the related Prepayment
      Period) minus the product of (i) 0.50% and (ii) the aggregate principal balance
      of the Mortgage Loans as of the Cut-off Date (which includes the aggregate
      principal balance of the Identified Subsequent Mortgage Loans).

     

    
      
        
        

      

      
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    “Class
      M-3 Certificate”:
      Any
      one of the Class M-3 Certificates executed and authenticated by the Securities
      Administrator and delivered by the Trustee, substantially in the form annexed
      hereto as Exhibit A-2 and evidencing (i) a Regular Interest in REMIC IV, (ii)
      the right to receive the related Net WAC Rate Carryover Amount and (iii) the
      obligation to pay any Class IO Distribution Amount.

     

    “Class
      M-3 Principal Distribution Amount”:
      With
      respect to any Distribution Date on or after the Stepdown Date and on which
      a
      Trigger Event is not in effect, the excess of (x) the sum of (i) the aggregate
      Certificate Principal Balance of the Class A Certificates after taking into
      account the payment of the Class A Principal Distribution Amount on the
      Distribution Date, (ii) the Certificate Principal Balance of the Class M-1
      Certificates after taking into account the payment of the Class M-1 Principal
      Distribution Amount on the Distribution Date, (iii) the Certificate Principal
      Balance of the Class M-2 Certificates after taking into account the payment
      of
      the Class M-2 Principal Distribution Amount on the Distribution Date and (iv)
      the Certificate Principal Balance of the Class M-3 Certificates immediately
      prior to the Distribution Date over (y) the lesser of (A) the product of (i)
      65.70% and (ii) the aggregate Stated Principal Balance of the Mortgage Loans
      as
      of the last day of the related Due Period (after giving effect to scheduled
      payments of principal due during the related Due Period, to the extent received
      or advanced, and unscheduled collections of principal received during the
      related Prepayment Period) and (B) the aggregate Stated Principal Balance of
      the
      Mortgage Loans as of the last day of the related Due Period (after giving effect
      to scheduled payments of principal due during the related Due Period, to the
      extent received or advanced, and unscheduled collections of principal received
      during the related Prepayment Period) minus the product of (i) 0.50% and (ii)
      the aggregate principal balance of the Mortgage Loans as of the Cut-off Date
      (which includes the aggregate principal balance of the Identified Subsequent
      Mortgage Loans). 

     

    “Class
      M-4 Certificate”:
      Any
      one of the Class M-4 Certificates executed and authenticated by the Securities
      Administrator and delivered by the Trustee, substantially in the form annexed
      hereto as Exhibit A-2 and evidencing (i) a Regular Interest in REMIC IV, (ii)
      the right to receive the related Net WAC Rate Carryover Amount and (iii) the
      obligation to pay any Class IO Distribution Amount.

     

    “Class
      M-4 Principal Distribution Amount”:
      With
      respect to any Distribution Date on or after the Stepdown Date and on which
      a
      Trigger Event is not in effect, the excess of (x) the sum of (i) the aggregate
      Certificate Principal Balance of the Class A Certificates after taking into
      account the payment of the Class A Principal Distribution Amount on the
      Distribution Date, (ii) the Certificate Principal Balance of the Class M-1
      Certificates after taking into account the payment of the Class M-1 Principal
      Distribution Amount on the Distribution Date, (iii) the Certificate Principal
      Balance of the Class M-2 Certificates after taking into account the payment
      of
      the Class M-2 Principal Distribution Amount on the Distribution Date, (iv)
      the
      Certificate Principal Balance of the Class M-3 Certificates after taking into
      account the payment of the Class M-3 Principal Distribution Amount on the
      Distribution Date and (v) the Certificate Principal Balance of the Class M-4
      Certificates immediately prior to the Distribution Date over (y) the lesser
      of
      (A) the product of (i) 70.40% and (ii) the aggregate Stated Principal Balance
      of
      the Mortgage Loans as of the last day of the related Due Period (after giving
      effect to scheduled payments of principal due during the related Due Period,
      to
      the extent received or advanced, and unscheduled collections of principal
      received during the related Prepayment Period) and (B) the aggregate Stated
      Principal Balance of the Mortgage Loans as of the last day of the related Due
      Period (after giving effect to scheduled payments of principal due during the
      related Due Period, to the extent received or advanced, and unscheduled
      collections of principal received during the related Prepayment Period) minus
      the product of (i) 0.50% and (ii) the aggregate principal balance of the
      Mortgage Loans as of the Cut-off Date (which includes the aggregate principal
      balance of the Identified Subsequent Mortgage Loans). 

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

     

    “Class
      M-5 Certificate”:
      Any
      one of the Class M-5 Certificates executed and authenticated by the Securities
      Administrator and delivered by the Trustee, substantially in the form annexed
      hereto as Exhibit A-2 and evidencing (i) a Regular Interest in REMIC IV, (ii)
      the right to receive the related Net WAC Rate Carryover Amount and (iii) the
      obligation to pay any Class IO Distribution Amount.

     

    “Class
      M-5 Principal Distribution Amount”:
      With
      respect to any Distribution Date on or after the Stepdown Date and on which
      a
      Trigger Event is not in effect, the excess of (x) the sum of (i) the aggregate
      Certificate Principal Balance of the Class A Certificates after taking into
      account the payment of the Class A Principal Distribution Amount on the
      Distribution Date, (ii) the Certificate Principal Balance of the Class M-1
      Certificates after taking into account the payment of the Class M-1 Principal
      Distribution Amount on the Distribution Date, (iii) the Certificate Principal
      Balance of the Class M-2 Certificates after taking into account the payment
      of
      the Class M-2 Principal Distribution Amount on the Distribution Date, (iv)
      the
      Certificate Principal Balance of the Class M-3 Certificates after taking into
      account the payment of the Class M-3 Principal Distribution Amount on the
      Distribution Date, (v) the Certificate Principal Balance of the Class M-4
      Certificates after taking into account the payment of the Class M-4 Principal
      Distribution Amount on the Distribution Date and (vi) the Certificate Principal
      Balance of the Class M-5 Certificates immediately prior to the Distribution
      Date
      over (y) the lesser of (A) the product of (i) 74.90% and (ii) the aggregate
      Stated Principal Balance of the Mortgage Loans as of the last day of the related
      Due Period (after giving effect to scheduled payments of principal due during
      the related Due Period, to the extent received or advanced, and unscheduled
      collections of principal received during the related Prepayment Period) and
      (B)
      the aggregate Stated Principal Balance of the Mortgage Loans as of the last
      day
      of the related Due Period (after giving effect to scheduled payments of
      principal due during the related Due Period, to the extent received or advanced,
      and unscheduled collections of principal received during the related Prepayment
      Period) minus the product of (i) 0.50% and (ii) the aggregate principal balance
      of the Mortgage Loans as of the Cut-off Date (which includes the aggregate
      principal balance of the Identified Subsequent Mortgage Loans). 

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

     

    “Class
      M-6 Certificate”:
      Any
      one of the Class M-6 Certificates executed and authenticated by the Securities
      Administrator and delivered by the Trustee, substantially in the form annexed
      hereto as Exhibit A-2 and evidencing (i) a Regular Interest in REMIC IV, (ii)
      the right to receive the related Net WAC Rate Carryover Amount and (iii) the
      obligation to pay any Class IO Distribution Amount.

     

    “Class
      M-6 Principal Distribution Amount”:
      With
      respect to any Distribution Date on or after the Stepdown Date and on which
      a
      Trigger Event is not in effect, the excess of (x) the sum of (i) the aggregate
      Certificate Principal Balance of the Class A Certificates after taking into
      account the payment of the Class A Principal Distribution Amount on the
      Distribution Date, (ii) the Certificate Principal Balance of the Class M-1
      Certificates after taking into account the payment of the Class M-1 Principal
      Distribution Amount on the Distribution Date, (iii) the Certificate Principal
      Balance of the Class M-2 Certificates after taking into account the payment
      of
      the Class M-2 Principal Distribution Amount on the Distribution Date, (iv)
      the
      Certificate Principal Balance of the Class M-3 Certificates after taking into
      account the payment of the Class M-3 Principal Distribution Amount on the
      Distribution Date, (v) the Certificate Principal Balance of the Class M-4
      Certificates after taking into account the payment of the Class M-4 Principal
      Distribution Amount on the Distribution Date, (vi) the Certificate Principal
      Balance of the Class M-5 Certificates after taking into account the payment
      of
      the Class M-5 Principal Distribution Amount on the Distribution Date and (vii)
      the Certificate Principal Balance of the Class M-6 Certificates immediately
      prior to the Distribution Date over (y) the lesser of (A) the product of (i)
      78.80% and (ii) the aggregate Stated Principal Balance of the Mortgage Loans
      as
      of the last day of the related Due Period (after giving effect to scheduled
      payments of principal due during the related Due Period, to the extent received
      or advanced, and unscheduled collections of principal received during the
      related Prepayment Period) and (B) the aggregate Stated Principal Balance of
      the
      Mortgage Loans as of the last day of the related Due Period (after giving effect
      to scheduled payments of principal due during the related Due Period, to the
      extent received or advanced, and unscheduled collections of principal received
      during the related Prepayment Period) minus the product of (i) 0.50% and (ii)
      the aggregate principal balance of the Mortgage Loans as of the Cut-off Date
      (which includes the aggregate principal balance of the Identified Subsequent
      Mortgage Loans).

     

    “Class
      M-7 Certificate”:
      Any
      one of the Class M-7 Certificates executed and authenticated by the Securities
      Administrator and delivered by the Trustee, substantially in the form annexed
      hereto as Exhibit A-2 and evidencing (i) a Regular Interest in REMIC IV, (ii)
      the right to receive the related Net WAC Rate Carryover Amount and (iii) the
      obligation to pay any Class IO Distribution Amount.

     

    “Class
      M-7 Principal Distribution Amount”:
      With
      respect to any Distribution Date on or after the Stepdown Date and on which
      a
      Trigger Event is not in effect, the excess of (x) the sum of (i) the aggregate
      Certificate Principal Balance of the Class A Certificates after taking into
      account the payment of the Class A Principal Distribution Amount on the
      Distribution Date, (ii) the Certificate Principal Balance of the Class M-1
      Certificates after taking into account the payment of the Class M-1 Principal
      Distribution Amount on the Distribution Date, (iii) the Certificate Principal
      Balance of the Class M-2 Certificates after taking into account the payment
      of
      the Class M-2 Principal Distribution Amount on the Distribution Date, (iv)
      the
      Certificate Principal Balance of the Class M-3 Certificates after taking into
      account the payment of the Class M-3 Principal Distribution Amount on the
      Distribution Date, (v) the Certificate Principal Balance of the Class M-4
      Certificates after taking into account the payment of the Class M-4 Principal
      Distribution Amount on the Distribution Date, (vi) the Certificate Principal
      Balance of the Class M-5 Certificates after taking into account the payment
      of
      the Class M-5 Principal Distribution Amount on the Distribution Date, (vii)
      the
      Certificate Principal Balance of the Class M-6 Certificates after taking into
      account the payment of the Class M-6 Principal Distribution Amount on the
      Distribution Date and (viii) the Certificate Principal Balance of the Class
      M-7
      Certificates immediately prior to the Distribution Date over (y) the lesser
      of
      (A) the product of (i) 82.60% and (ii) the aggregate Stated Principal Balance
      of
      the Mortgage Loans as of the last day of the related Due Period (after giving
      effect to scheduled payments of principal due during the related Due Period,
      to
      the extent received or advanced, and unscheduled collections of principal
      received during the related Prepayment Period) and (B) the aggregate Stated
      Principal Balance of the Mortgage Loans as of the last day of the related Due
      Period (after giving effect to scheduled payments of principal due during the
      related Due Period, to the extent received or advanced, and unscheduled
      collections of principal received during the related Prepayment Period) minus
      the product of (i) 0.50% and (ii) the aggregate principal balance of the
      Mortgage Loans as of the Cut-off Date (which includes the aggregate principal
      balance of the Identified Subsequent Mortgage Loans). 

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

     

    “Class
      M-8 Certificate”:
      Any
      one of the Class M-8 Certificates executed and authenticated by the Securities
      Administrator and delivered by the Trustee, substantially in the form annexed
      hereto as Exhibit A-2 and evidencing (i) a Regular Interest in REMIC IV, (ii)
      the right to receive the related Net WAC Rate Carryover Amount and (iii) the
      obligation to pay any Class IO Distribution Amount.

     

    “Class
      M-8 Principal Distribution Amount”:
      With
      respect to any Distribution Date on or after the Stepdown Date and on which
      a
      Trigger Event is not in effect, the excess of (x) the sum of (i) the aggregate
      Certificate Principal Balance of the Class A Certificates after taking into
      account the payment of the Class A Principal Distribution Amount on the
      Distribution Date, (ii) the Certificate Principal Balance of the Class M-1
      Certificates after taking into account the payment of the Class M-1 Principal
      Distribution Amount on the Distribution Date, (iii) the Certificate Principal
      Balance of the Class M-2 Certificates after taking into account the payment
      of
      the Class M-2 Principal Distribution Amount on the Distribution Date, (iv)
      the
      Certificate Principal Balance of the Class M-3 Certificates after taking into
      account the payment of the Class M-3 Principal Distribution Amount on the
      Distribution Date, (v) the Certificate Principal Balance of the Class M-4
      Certificates after taking into account the payment of the Class M-4 Principal
      Distribution Amount on the Distribution Date, (vi) the Certificate Principal
      Balance of the Class M-5 Certificates after taking into account the payment
      of
      the Class M-5 Principal Distribution Amount on the Distribution Date, (vii)
      the
      Certificate Principal Balance of the Class M-6 Certificates after taking into
      account the payment of the Class M-6 Principal Distribution Amount on the
      Distribution Date, (viii) the Certificate Principal Balance of the Class M-7
      Certificates after taking into account the payment of the Class M-7 Principal
      Distribution Amount on the Distribution Date and (ix) the Certificate Principal
      Balance of the Class M-8 Certificates immediately prior to the Distribution
      Date
      over (y) the lesser of (A) the product of (i) 86.20% and (ii) the aggregate
      Stated Principal Balance of the Mortgage Loans as of the last day of the related
      Due Period (after giving effect to scheduled payments of principal due during
      the related Due Period, to the extent received or advanced, and unscheduled
      collections of principal received during the related Prepayment Period) and
      (B)
      the aggregate Stated Principal Balance of the Mortgage Loans as of the last
      day
      of the related Due Period (after giving effect to scheduled payments of
      principal due during the related Due Period, to the extent received or advanced,
      and unscheduled collections of principal received during the related Prepayment
      Period) minus the product of (i) 0.50% and (ii) the aggregate principal balance
      of the Mortgage Loans as of the Cut-off Date (which includes the aggregate
      principal balance of the Identified Subsequent Mortgage Loans).

     

    
      
        
        

      

      
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    “Class
      M-9 Certificate”:
      Any
      one of the Class M-9 Certificates executed and authenticated by the Securities
      Administrator and delivered by the Trustee, substantially in the form annexed
      hereto as Exhibit A-2 and evidencing (i) a Regular Interest in REMIC IV, (ii)
      the right to receive the related Net WAC Rate Carryover Amount and (iii) the
      obligation to pay any Class IO Distribution Amount.

     

    “Class
      M-9 Principal Distribution Amount”:
      With
      respect to any Distribution Date on or after the Stepdown Date and on which
      a
      Trigger Event is not in effect, the excess of (x) the sum of (i) the aggregate
      Certificate Principal Balance of the Class A Certificates after taking into
      account the payment of the Class A Principal Distribution Amount on the
      Distribution Date, (ii) the Certificate Principal Balance of the Class M-1
      Certificates after taking into account the payment of the Class M-1 Principal
      Distribution Amount on the Distribution Date, (iii) the Certificate Principal
      Balance of the Class M-2 Certificates after taking into account the payment
      of
      the Class M-2 Principal Distribution Amount on the Distribution Date, (iv)
      the
      Certificate Principal Balance of the Class M-3 Certificates after taking into
      account the payment of the Class M-3 Principal Distribution Amount on the
      Distribution Date, (v) the Certificate Principal Balance of the Class M-4
      Certificates after taking into account the payment of the Class M-4 Principal
      Distribution Amount on the Distribution Date, (vi) the Certificate Principal
      Balance of the Class M-5 Certificates after taking into account the payment
      of
      the Class M-5 Principal Distribution Amount on the Distribution Date, (vii)
      the
      Certificate Principal Balance of the Class M-6 Certificates after taking into
      account the payment of the Class M-6 Principal Distribution Amount on the
      Distribution Date, (viii) the Certificate Principal Balance of the Class M-7
      Certificates after taking into account the payment of the Class M-7 Principal
      Distribution Amount on the Distribution Date, (ix) the Certificate Principal
      Balance of the Class M-8 Certificates after taking into account the payment
      of
      the Class M-8 Principal Distribution Amount on the Distribution Date and (x)
      the
      Certificate Principal Balance of the Class M-9 Certificates immediately prior
      to
      the Distribution Date over (y) the lesser of (A) the product of (i) 89.30%
      and
      (ii) the aggregate Stated Principal Balance of the Mortgage Loans as of the
      last
      day of the related Due Period (after giving effect to scheduled payments of
      principal due during the related Due Period, to the extent received or advanced,
      and unscheduled collections of principal received during the related Prepayment
      Period) and (B) the aggregate Stated Principal Balance of the Mortgage Loans
      as
      of the last day of the related Due Period (after giving effect to scheduled
      payments of principal due during the related Due Period, to the extent received
      or advanced, and unscheduled collections of principal received during the
      related Prepayment Period) minus the product of (i) 0.50% and (ii) the aggregate
      principal balance of the Mortgage Loans as of the Cut-off Date (which includes
      the aggregate principal balance of the Identified Subsequent Mortgage Loans).
      

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

     

    “Class
      P Certificate”:
      Any
      one of the Class P Certificates executed and authenticated by the Securities
      Administrator and delivered by the Trustee, substantially in the form annexed
      hereto as Exhibit A-4 and evidencing a Regular Interest in REMIC IV for purposes
      of the REMIC Provisions.

     

    “Class
      R Certificates”:
      Any
      one of the Class R Certificates executed and authenticated by the Securities
      Administrator and delivered by the Trustee, substantially in the form annexed
      hereto as Exhibit A-5, and evidencing the Class R-I Interest, the Class R-II
      Interest, the Class R-III Interest and the Class R-IV Interest.

     

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

     

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

     

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

     

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

     

    “Closing
      Date”:
      April
      30, 2007.

     

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

     

    “Collection
      Account”:
      The
      separate account or accounts created and maintained, or caused to be created
      and
      maintained, by (A) Ocwen and GMAC pursuant to Section 3.08(a) of this Agreement
      for the benefit of the Certificateholders, which shall be entitled (i) with
      respect to the Ocwen Mortgage Loans, “Ocwen Loan Servicing, LLC, as Servicer for
      HSBC Bank USA, National Association as Trustee, in trust for the registered
      holders of ACE Securities Corp., Home Equity Loan Trust, Series 2007-HE4, Asset
      Backed Pass-Through Certificates”, (ii) with respect to the GMAC Mortgage Loans,
“GMAC Mortgage, LLC, as Servicer for HSBC Bank USA, National Association as
      Trustee, in trust for the registered holders of ACE Securities Corp., Home
      Equity Loan Trust, Series 2007-HE4, Asset Backed Pass-Through Certificates
      or
      (B) Countrywide pursuant to the Servicing Agreement. Each Collection Account
      must be an Eligible Account as defined in this Agreement or, with respect to
      Countrywide, must conform to the requirements of the Servicing
      Agreement.

     

    “Commission”:
      The
      Securities and Exchange Commission.

     

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

     

    “Corporate
      Trust Office”:
      The
      principal corporate trust office of the Trustee or the Securities Administrator,
      as the case may be, at which, at any particular time, its corporate trust
      business in connection with this Agreement shall be administered, which office
      at the date of the execution of this instrument is located at (i) with respect
      to the Trustee, HSBC Bank USA, National Association, 452 Fifth Avenue, New
      York,
      New York 10018, Attention: ACE Securities Corp., 2007-HE4, or at such other
      address as the Trustee may designate from time to time by notice to the
      Certificateholders, the Depositor, the Master Servicer, the Securities
      Administrator and the Servicers, or (ii) with respect to the Securities
      Administrator, (A) for purposes of Certificate transfers and surrender, Wells
      Fargo Bank, National Association, Sixth Street and Marquette Avenue,
      Minneapolis, Minnesota 55479, Attention: Corporate Trust (ACE 2007-HE4), and
      (B)
      for all other purposes, Wells Fargo Bank, National Association, P.O. Box 98,
      Columbia, Maryland 21046, Attention: Corporate Trust (ACE 2007-HE4) (or for
      overnight deliveries, at 9062 Old Annapolis Road, Columbia, Maryland 21045,
      Attention: Corporate Trust (ACE 2007-HE4)), or at such other address as the
      Securities Administrator may designate from time to time by notice to the
      Certificateholders, the Depositor, the Master Servicer, the Servicer and the
      Trustee.

     

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

     

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

     

    
      	
              REMIC
                III REGULAR INTEREST

            	 	
              CLASS

            	 
	
              REMIC
                III REGULAR INTEREST A-1

            	 	 	
              A-1

            	 
	
              REMIC
                III REGULAR INTEREST A-2A

            	 	 	
              A-2A

            	 
	
              REMIC
                III REGULAR INTEREST A-2B

            	 	 	
              A-2B

            	 
	
              REMIC
                III REGULAR INTEREST A-2C

            	 	 	
              A-2C

            	 
	
              REMIC
                III REGULAR INTEREST A-2D

            	 	 	
              A-2D

            	 
	
              REMIC
                III REGULAR INTEREST M-1

            	 	 	
              M-1

            	 
	
              REMIC
                III REGULAR INTEREST M-2

            	 	 	
              M-2

            	 
	
              REMIC
                III REGULAR INTEREST M-3

            	 	 	
              M-3

            	 
	
              REMIC
                III REGULAR INTEREST M-4

            	 	 	
              M-4

            	 
	
              REMIC
                III REGULAR INTEREST M-5

            	 	 	
              M-5

            	 
	
              REMIC
                III REGULAR INTEREST M-6

            	 	 	
              M-6

            	 
	
              REMIC
                III REGULAR INTEREST M-7

            	 	 	
              M-7

            	 
	
              REMIC
                III REGULAR INTEREST M-8

            	 	 	
              M-8

            	 
	
              REMIC
                III REGULAR INTEREST M-9

            	 	 	
              M-9

            	 
	
              REMIC
                III REGULAR INTEREST P

            	 	 	
              P

            	 
	
              REMIC
                III REGULAR INTEREST CE-2

            	 	 	
              CE-2

            	 

    

    

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

     

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

     

    “Countrywide
      Servicing Fee Rate”:
      With
      respect to each Countrywide Mortgage Loan, 0.17% per annum.

     

    “Credit
      Enhancement Percentage”:
      For
      any Distribution Date, the percentage equivalent of a fraction, the numerator
      of
      which is the sum of the aggregate Certificate Principal Balances of the
      Mezzanine Certificates and the Class CE-1 Certificates (which includes the
      Overcollateralization Amount), and the denominator of which is the aggregate
      Stated Principal Balance of the Mortgage Loans, calculated after taking into
      account distributions of principal on the Mortgage Loans and distribution of
      the
      Principal Distribution Amount to the Certificates then entitled to distributions
      of principal on such Distribution Date.

     

    
      
        
        

      

      
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    “Credit
      Risk Management Agreements”:
      The
      agreements between the Credit Risk Manager and each Servicer and/or Master
      Servicer, each regarding the loss mitigation and advisory services to be
      provided by the Credit Risk Manager.

     

    “Credit
      Risk Management Fee”:
      The
      amount payable to the Credit Risk Manager on each Distribution Date as
      compensation for all services rendered by it in the exercise and performance
      of
      any and all powers and duties of the Credit Risk Manager under the Credit Risk
      Management Agreements, which amount shall equal one twelfth of the product
      of
      (i) the Credit Risk Management Fee Rate multiplied by (ii) the Stated Principal
      Balance of the Mortgage Loans and any related REO Properties as of the first
      day
      of the related Due Period.

     

    “Credit
      Risk Management Fee Rate”:
      0.0135% per annum.

     

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

     

    “Custodial
      Agreement”:
      Either
      of (i) the DBNTC Custodial Agreement or (ii) the Wells Fargo Custodial
      Agreement, or any other custodial agreement entered into after the date hereof
      with respect to any Mortgage Loan subject to this Agreement.

     

    “Custodian”:
      Either
      Wells Fargo or DBNTC or any other custodian appointed under any custodial
      agreement entered into after the date of this Agreement.

     

    “Cut-off
      Date”:
      With
      respect to each Mortgage Loan, April 1, 2007 (other than any Subsequent Mortgage
      Loan or Qualified Substitute Mortgage Loan. With respect to all Qualified
      Substitute Mortgage Loans, their respective dates of substitution. With respect
      to those Subsequent Mortgage Loans sold to the Trust pursuant to a Subsequent
      Transfer Instrument, the later of (i) first day of the month in which the
      related Subsequent Transfer Date occurs or (ii) the date of origination of
      such
      Mortgage Loan. References herein to the “Cut-off Date,” when used with respect
      to more than one Mortgage Loan, shall be to the respective Cut-off Dates for
      such Mortgage Loans.

     

    “DBNTC”:
      Deutsche Bank National Trust Company, a national banking association, or its
      successor in interest.

     

    “DBNTC
      Custodial Agreement”:
      The
      Custodial Agreement, dated as of April 1, 2007, among the Trustee, DBNTC and
      the
      Servicers, as may be amended or supplemented from time to time.

     

    “Debt
      Service Reduction”:
      With
      respect to any Mortgage Loan, a reduction in the scheduled Monthly Payment
      for
      such Mortgage Loan by a court of competent jurisdiction in a proceeding under
      the Bankruptcy Code, except such a reduction resulting from a Deficient
      Valuation.

     

    
      
        
        

      

      
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    “Deficient
      Valuation”:
      With
      respect to any Mortgage Loan, a valuation of the related Mortgaged Property
      by a
      court of competent jurisdiction in an amount less than the then outstanding
      principal balance of the Mortgage Loan, which valuation results from a
      proceeding initiated under the Bankruptcy Code.

     

    “Definitive
      Certificates”:
      As
      defined in Section 6.01(b).

     

    “Deleted
      Mortgage Loan”:
      A
      Mortgage Loan replaced or to be replaced by a Qualified Substitute Mortgage
      Loan.

     

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

     

    “Depositor”:
      ACE
      Securities Corp., a Delaware corporation, or its successor in
      interest.

     

    “Depository”:
      The
      Depository Trust Company, or any successor Depository hereafter named. The
      nominee of the initial Depository, for purposes of registering those
      Certificates that are to be Book-Entry Certificates, is Cede & Co. The
      Depository shall at all times be a “clearing corporation” as defined in Section
      8-102(3) of the Uniform Commercial Code of the State of New York and a “clearing
      agency” registered pursuant to the provisions of Section 17A of the Exchange
      Act.

     

    “Depository
      Institution”:
      Any
      depository institution or trust company, including the Trustee, that (a) is
      incorporated under the laws of the United States of America or any State
      thereof, (b) is subject to supervision and examination by federal or state
      banking authorities and (c) has outstanding unsecured commercial paper or other
      short-term unsecured debt obligations (or, in the case of a depository
      institution that is the principal subsidiary of a holding company, such holding
      company has unsecured commercial paper or other short-term unsecured debt
      obligations) that are rated at least A-1+ by S&P, F-1+ by Fitch and P-1 by
      Moody’s (or, if such Rating Agencies are no longer rating the Offered
      Certificates, comparable ratings by any other nationally recognized statistical
      rating agency then rating the Offered Certificates).

     

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

     

    “Determination
      Date”:
      With
      respect to each Distribution Date and Ocwen and GMAC, the 15th
      day of
      the calendar month in which such Distribution Date occurs, or if such
      15th
      day is
      not a Business Day, the Business Day immediately preceding such 15th
      day.
      With respect to each Distribution Date and Countrywide the date specified in
      the
      Servicing Agreement. The Determination Date for purposes of Article X hereof
      shall mean the 15th
      day of
      the month, or if such 15th
      day is
      not a Business Day, the first Business Day following such 15th
      day.

     

    
      
        
        

      

      
        28

        
          

        

      

      
        
        

      

    

     

    “Directly
      Operate”:
      With
      respect to any REO Property, the furnishing or rendering of services to the
      tenants thereof, the management or operation of such REO Property, the holding
      of such REO Property primarily for sale to customers, the performance of any
      construction work thereon or any use of such REO Property in a trade or business
      conducted by REMIC I other than through an Independent Contractor; provided,
      however, that the related Servicer, on behalf of the Trustee, shall not be
      considered to Directly Operate an REO Property solely because the Servicer
      establishes rental terms, chooses tenants, enters into or renews leases, deals
      with taxes and insurance, or makes decisions as to repairs or capital
      expenditures with respect to such REO Property.

     

    “Disqualified
      Organization”:
      Any of
      the following: (i) the United States, any State or political subdivision
      thereof, any possession of the United States, or any agency or instrumentality
      of any of the foregoing (other than an instrumentality which is a corporation
      if
      all of its activities are subject to tax and, except for Freddie Mac, a majority
      of its board of directors is not selected by such governmental unit), (ii)
      any
      foreign government, any international organization, or any agency or
      instrumentality of any of the foregoing, (iii) any organization (other than
      certain farmers’ cooperatives described in Section 521 of the Code) which is
      exempt from the tax imposed by Chapter 1 of the Code (including the tax imposed
      by Section 511 of the Code on unrelated business taxable income), (iv) rural
      electric and telephone cooperatives described in Section 1381(a)(2)(C) of the
      Code, (v) an “electing large partnership” and (vi) any other Person so
      designated by the Trustee based upon an Opinion of Counsel that the holding
      of
      an Ownership Interest in a Residual Certificate by such Person may cause any
      Trust REMIC or any Person having an Ownership Interest in any Class of
      Certificates (other than such Person) to incur a liability for any federal
      tax
      imposed under the Code that would not otherwise be imposed but for the Transfer
      of an Ownership Interest in a Residual Certificate to such Person. The terms
      “United States,” “State” and “international organization” shall have the
      meanings set forth in Section 7701 of the Code or successor
      provisions.

     

    “Distribution
      Account”:
      The
      separate trust account or accounts created and maintained by the Securities
      Administrator pursuant to Section 3.08(b) in the name of the Securities
      Administrator for the benefit of the Certificateholders and designated “Wells
      Fargo Bank, National Association, in trust for registered holders of ACE
      Securities Corp. Home Equity Loan Trust, Series 2007-HE4”. Funds in the
      Distribution Account shall be held in trust for the Certificateholders for
      the
      uses and purposes set forth in this Agreement. The Distribution Account must
      be
      an Eligible Account.

     

    “Distribution
      Date”:
      The
      25th day of any month, or if such 25th day is not a Business Day, the Business
      Day immediately following such 25th day, commencing in May 2007.

     

    “Due
      Date”:
      With
      respect to each Distribution Date, the day of the month on which the Monthly
      Payment is due on a Mortgage Loan during the related Due Period, exclusive
      of
      any days of grace.

     

    
      
        
        

      

      
        29

        
          

        

      

      
        
        

      

    

     

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

     

    “Eligible
      Account”:
      Any of
      (i) an account or accounts maintained with a Depository Institution, (ii) an
      account or accounts the deposits in which are fully insured by the FDIC, (iii)
      a
      trust account or accounts maintained with a federal depository institution
      or
      state chartered depository institution acting in its fiduciary capacity or
      (iv)
      an account of accounts acceptable to the NIMS Insurer and each Rating Agency
      as
      confirmed and approved in writing by each Rating Agency. Eligible Accounts
      may
      bear interest.

     

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

     

    “Estate
      in Real Property”:
      A fee
      simple estate in a parcel of land.

     

    “Excess
      Liquidation Proceeds”:
      To the
      extent that such amount is not required by law to be paid to the related
      Mortgagor, the amount, if any, by which Liquidation Proceeds with respect to
      a
      liquidated Mortgage Loan exceed the sum of (i) the outstanding principal balance
      of such Mortgage Loan and accrued but unpaid interest at the related Net
      Mortgage Rate through the last day of the month in which the related Liquidation
      Event occurs, plus (ii) related liquidation expenses or other amounts to which
      the related Servicer is entitled to be reimbursed from Liquidation Proceeds
      with
      respect to such liquidated Mortgage Loan pursuant to Section 3.09 of this
      Agreement or pursuant to the Servicing Agreement, as applicable.

     

    “Excess
      Servicing Fee”:
      Shall
      have the meaning set forth in Section 5.01(e) of this Agreement.

     

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

     

    “Extraordinary
      Trust Fund Expense”:
      Any
      amounts payable or reimbursable to the Trustee, the Master Servicer, the
      Securities Administrator, the Custodians or any director, officer, employee
      or
      agent of any such Person from the Trust Fund pursuant to the terms of this
      Agreement and any amounts payable from the Distribution Account in respect
      of
      taxes pursuant to Section 11.01(g)(v).

     

    “Fannie
      Mae”:
      Fannie
      Mae, formerly known as the Federal National Mortgage Association, or any
      successor thereto.

     

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

     

    “Final
      Recovery Determination”:
      With
      respect to any defaulted Mortgage Loan or any REO Property (other than a
      Mortgage Loan or REO Property purchased by an originator, the Sponsor or the
      Terminator pursuant to or as contemplated by Section 2.03, 3.13(c) or Section
      10.01), a determination made by the related Servicer that all Insurance
      Proceeds, Liquidation Proceeds and other payments or recoveries which such
      Servicer, in its reasonable good faith judgment, expects to be finally
      recoverable in respect thereof have been so recovered, which determination
      shall
      be evidenced by a certificate of a Servicing Officer of such Servicer delivered
      to the Master Servicer and maintained in its records.

     

    
      
        
        

      

      
        30

        
          

        

      

      
        
        

      

    

     

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

     

    “Form
      8-K Disclosure Information”:
      Has
      the meaning set forth in Section 5.06(b) of this Agreement.

     

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

     

    “GMAC”:
      GMAC
      Mortgage, LLC or any successor thereto appointed hereunder in connection with
      the servicing and administration of the GMAC Mortgage Loans.

     

    “GMAC
      Mortgage Loans”:
      The
      Mortgage Loans serviced by GMAC pursuant to the terms of this Agreement as
      specified on the Mortgage Loan Schedule.

     

    “GMAC
      Servicing Fee Rate”:
      With
      respect to each GMAC Mortgage Loan, 0.20% per annum. 

     

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

     

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

     

    “Group
      I Cap Contract”:
      The
      Cap Contract, dated as of April 30, 2007, between the Trustee and the Cap
      Counterparty, including any schedule, confirmations, credit support annex or
      other credit support document relating thereto, and attached hereto as Exhibit
      J.

     

    “Group
      I Cap Credit Support Annex”:
      The
      credit support annex, dated as of April 30, 2007, between the Trustee and the
      Cap Counterparty, which is annexed to and forms part of the Group I Cap
      Agreement.

     

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

     

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

     

    
      
        
        

      

      
        31

        
          

        

      

      
        
        

      

    

     

    “Group
      I Pre-Funding Sub-Account”:
      The
      sub-account of the Pre-Funding Account into which the Original Group I
      Pre-Funded Amount will be deposited on the Closing Date.

     

    “Group
      I Principal Distribution Amount”:
      With
      respect to any Distribution Date the sum of (i) the principal portion of all
      Monthly Payments on the Group I Mortgage Loans due during the related Due
      Period, whether or not received on or prior to the related Determination Date;
      (ii) the principal portion of all proceeds received in respect of the repurchase
      of a Group I Mortgage Loan or, in the case of a substitution, certain amounts
      representing a principal adjustment, during the related Prepayment Period
      pursuant to or as contemplated by Section 2.03, Section 3.13(c) and Section
      10.01 of this Agreement; (iii) the principal portion of all other unscheduled
      collections, including Insurance Proceeds, Liquidation Proceeds and all
      Principal Prepayments in full and in part, received during the related
      Prepayment Period, to the extent applied as recoveries of principal on the
      Group
      I Mortgage Loans, net in each case of payments or reimbursements to the Trustee,
      the Custodians, the Master Servicer, the Securities Administrator, the Servicers
      or the Credit Risk Manager; (iv) any portion of the Original Group I Pre-Funded
      Amount remaining at the end of the Pre-Funding Period and (v) the Class A-1
      Allocation Percentage of the amount of any Overcollateralization Increase Amount
      for such Distribution Date minus
      (v) the
      Class A-1 Allocation Percentage of the amount of any Overcollateralization
      Reduction Amount for such Distribution Date.

     

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

     

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

     

    “Group
      II Cap Contract”:
      The
      Cap Contract, dated as of April 30, 2007, between the Trustee and the Cap
      Counterparty, including any schedule, confirmations, credit support annex or
      other credit support document relating thereto, and attached hereto as Exhibit
      J.

     

    “Group
      II Cap Credit Support Annex”:
      The
      credit support annex, dated as of April 30, 2007, between the Trustee and the
      Cap Counterparty, which is annexed to and forms part of the Group II Cap
      Agreement.

     

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

     

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

     

    
      
        
        

      

      
        32

        
          

        

      

      
        
        

      

    

     

    “Group
      II Pre-Funding Sub-Account”:
      The
      sub-account of the Pre-Funding Account into which the Original Group II
      Pre-Funded Amount will be deposited on the Closing Date.

     

    “Group
      II Principal Distribution Amount”:
      With
      respect to any Distribution Date the sum of (i) the principal portion of all
      Monthly Payments on the Group II Mortgage Loans due during the related Due
      Period, whether or not received on or prior to the related Determination Date;
      (ii) the principal portion of all proceeds received in respect of the repurchase
      of a Group II Mortgage Loan or, in the case of a substitution, certain amounts
      representing a principal adjustment, during the related Prepayment Period
      pursuant to or as contemplated by Section 2.03, Section 3.13(c) and Section
      10.01 of this Agreement; (iii) the principal portion of all other unscheduled
      collections, including Insurance Proceeds, Liquidation Proceeds and all
      Principal Prepayments in full and in part, received during the related
      Prepayment Period, to the extent applied as recoveries of principal on the
      Group
      II Mortgage Loans, net in each case of payments or reimbursements to the
      Trustee, the Custodians, the Master Servicer, the Securities Administrator,
      the
      Servicers or the Credit Risk Manager; (iv) any portion of the Original Group
      II
      Pre-Funded Amount remaining at the end of the Pre-Funding Period and (v) the
      Class A-2 Allocation Percentage of the amount of any Overcollateralization
      Increase Amount for such Distribution Date minus
      (v) the
      Class A-2 Allocation Percentage of the amount of any Overcollateralization
      Reduction Amount for such Distribution Date.

     

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

     

    “Identified
      Subsequent Mortgage Loans”:
      The
      mortgage loans relating to Group I and Group II as identified on Exhibit M
      attached hereto which the Depositor proposes to transfer to the Trust during
      the
      Pre-Funding Period.

     

    “Indenture”:
      An
      indenture relating to the issuance of notes secured by the Class CE-1
      Certificates, the Class P Certificates, the Class R Certificates (or any portion
      thereof) which may or may not be guaranteed by the NIMS Insurer.

     

    “Independent”:
      When
      used with respect to any accountants, a Person who is “independent” within the
      meaning of Rule 2-01(B) of the Commission’s Regulation S-X. When used with
      respect to any specified Person, any such Person who (a) is in fact independent
      of the Depositor, the Master Servicer, the Securities Administrator, the
      Servicers, the Sponsor, any originator and their respective Affiliates, (b)
      does
      not have any direct financial interest in or any material indirect financial
      interest in the Depositor, the Master Servicer, the Securities Administrator,
      the Servicers, the Sponsor, any originator or any Affiliate thereof, (c) is
      not
      connected with the Depositor, the Master Servicer, the Securities Administrator,
      the Servicers, the Sponsor, any originator or any Affiliate thereof as an
      officer, employee, promoter, underwriter, trustee, partner, director or Person
      performing similar functions and (d) is not a member of the immediate family
      of
      a Person defined on clause (b) or (c) above.

     

    “Independent
      Contractor”:
      Either
      (i) any Person (other than a Servicer) that would be an “independent contractor”
with respect to REMIC I within the meaning of Section 856(d)(3) of the Code
      if
      REMIC I were a real estate investment trust (except that the ownership tests
      set
      forth in that section shall be considered to be met by any Person that owns,
      directly or indirectly, 35% or more of any Class of Certificates), so long
      as
      REMIC I does not receive or derive any income from such Person and provided
      that
      the relationship between such Person and REMIC I is at arm’s length, all within
      the meaning of Treasury Regulation Section 1.856-4(b)(5), or (ii) any other
      Person (including the Servicer) if the Trustee has received an Opinion of
      Counsel to the effect that the taking of any action in respect of any REO
      Property by such Person, subject to any conditions therein specified, that
      is
      otherwise herein contemplated to be taken by an Independent Contractor will
      not
      cause such REO Property to cease to qualify as “foreclosure property” within the
      meaning of Section 860G(a)(8) of the Code (determined without regard to the
      exception applicable for purposes of Section 860D(a) of the Code), or cause
      any
      income realized in respect of such REO Property to fail to qualify as Rents
      from
      Real Property.

     

    
      
        
        

      

      
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    “Index”:
      As of
      any Adjustment Date, the index applicable to the determination of the Mortgage
      Rate on each Adjustable Rate Mortgage Loan will be the average of the interbank
      offered rates for six-month United States dollar deposits in the London market
      as published in The Wall Street Journal and as most recently available either
      (a) as of the first Business Day forty-five (45) days prior to such Adjustment
      Date or (b) as of the first Business Day of the month preceding the month of
      such Adjustment Date, as specified in the related Mortgage Note.

     

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

     

    “Insurance
      Proceeds”:
      Proceeds of any title policy, hazard policy or other insurance policy, covering
      a Mortgage Loan or the related Mortgaged Property, to the extent such proceeds
      are not to be applied to the restoration of the related Mortgaged Property
      or
      released to the Mortgagor or a senior lienholder in accordance with Accepted
      Servicing Practices, subject to the terms and conditions of the related Mortgage
      Note and Mortgage.

     

    “Interest
      Accrual Period”:
      With
      respect to any Distribution Date and the Class A Certificates and the Mezzanine
      Certificates, the period commencing on the Distribution Date of the month
      immediately preceding the month in which such Distribution Date occurs (or,
      in
      the case of the first Distribution Date, commencing on the Closing Date) and
      ending on the day preceding such Distribution Date. With respect to any
      Distribution Date and the Class CE-1 Certificates and Class CE-2 Certificates
      and the REMIC I Regular Interests, the one-month period commencing on the first
      day of the month prior to the month in which the Distribution Date occurs and
      ending on the last day of the calendar month immediately preceding the month
      in
      which such Distribution Date occurs.

     

    “Interest
      Carry Forward Amount”:
      With
      respect to any Distribution Date and any Class A Certificate or Mezzanine
      Certificate, the sum of (i) the amount, if any, by which (a) the Interest
      Distribution Amount for such Class as of the immediately preceding Distribution
      Date exceeded (b) the actual amount distributed on such Class in respect of
      interest on such immediately preceding Distribution Date and (ii) the amount
      of
      any Interest Carry Forward Amount for such Class remaining unpaid from the
      previous Distribution Date, plus accrued interest on such sum calculated at
      the
      related Pass-Through Rate for the most recently ended Interest Accrual
      Period.

     

    
      
        
        

      

      
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    “Interest
      Determination Date”:
      With
      respect to the Class A Certificates, the Mezzanine Certificates, REMIC I Regular
      Interests, REMIC II Regular Interests, REMIC III Regular Interest A-1, REMIC
      III
      Regular Interest A-2A, REMIC III Regular Interest A-2B, REMIC III Regular
      Interest A-2C, REMIC III Regular Interest A-2D, REMIC III Regular Interest
      M-1,
      REMIC III Regular Interest M-2, REMIC III Regular Interest M-3, REMIC III
      Regular Interest M-4, REMIC III Regular Interest M-5, REMIC III Regular Interest
      M-6, REMIC III Regular Interest M-7, REMIC III Regular Interest M-8, REMIC
      III
      Regular Interest M-9 and any Interest Accrual Period therefor, the second London
      Business Day preceding the commencement of such Interest Accrual
      Period.

     

    “Interest
      Distribution Amount”:
      With
      respect to any Distribution Date and any Class A Certificates, any Mezzanine
      Certificates and any Class CE-1 Certificates, the aggregate Accrued Certificate
      Interest on the Certificates of such Class for such Distribution
      Date.

     

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

     

    “Last
      Scheduled Distribution Date”:
      The
      Distribution Date occurring in May 2037, which is the Distribution Date
      immediately following the maturity date for the Mortgage Loan with the latest
      maturity date.

     

    “Late
      Collections”:
      With
      respect to any Mortgage Loan and any Due Period, all amounts received subsequent
      to the Determination Date immediately following such Due Period with respect
      to
      such Mortgage Loan, whether as late payments of Monthly Payments or as Insurance
      Proceeds, Liquidation Proceeds or otherwise, which represent late payments
      or
      collections of principal and/or interest due (without regard to any acceleration
      of payments under the related Mortgage and Mortgage Note) but delinquent for
      such Due Period and not previously recovered.

     

    “Liquidation
      Event”:
      With
      respect to any Mortgage Loan, any of the following events: (i) such Mortgage
      Loan is paid in full; (ii) a Final Recovery Determination is made as to such
      Mortgage Loan or (iii) such Mortgage Loan is removed from REMIC I by reason
      of
      its being purchased, sold or replaced pursuant to or as contemplated by Section
      2.03, Section 3.13(c) or Section 10.01 of this Agreement. With respect to any
      REO Property, either of the following events: (i) a Final Recovery Determination
      is made as to such REO Property or (ii) such REO Property is removed from REMIC
      I by reason of its being purchased pursuant to Section 10.01.

     

    “Liquidation
      Proceeds”:
      The
      amount (other than Insurance Proceeds, amounts received in respect of the rental
      of any REO Property prior to REO Disposition, or required to be released to
      a
      Mortgagor or a senior lienholder in accordance with applicable law or the terms
      of the related Mortgage Loan Documents) received by the related Servicer in
      connection with (i) the taking of all or a part of a Mortgaged Property by
      exercise of the power of eminent domain or condemnation (other than amounts
      required to be released to the Mortgagor or a senior lienholder), (ii) the
      liquidation of a defaulted Mortgage Loan through a trustee’s sale, foreclosure
      sale or otherwise, (iii) the repurchase, substitution or sale of a Mortgage
      Loan
      or an REO Property pursuant to or as contemplated by Section 2.03, Section
      3.13(c), Section 3.22 or Section 10.01 of this Agreement or pursuant to the
      Servicing Agreement or (iv) any Subsequent Recoveries. 

     

    
      
        
        

      

      
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    “Loan-to-Value
      Ratio”:
      As of
      any date of determination, the fraction, expressed as a percentage, the
      numerator of which is the principal balance of the related Mortgage Loan at
      such
      date and the denominator of which is the Value of the related Mortgaged
      Property.

     

    “London
      Business Day”:
      Any
      day on which banks in the Cities of London and New York are open and conducting
      transactions in United States dollars.

     

    “Loss
      Severity Percentage”:
      With
      respect to any Distribution Date, the percentage equivalent of a fraction,
      the
      numerator of which is the amount of Realized Losses incurred on a Mortgage
      Loan
      and the denominator of which is the principal balance of such Mortgage Loan
      immediately prior to the liquidation of such Mortgage Loan.

     

    “Marker
      Rate”:
      With
      respect to the Class CE-1 Certificates and any Distribution Date, a per annum
      rate equal to two (2) times the weighted average of the REMIC III Remittance
      Rate for each of REMIC III Regular Interest A-1, REMIC III Regular Interest
      A-2A, REMIC III Regular Interest A-2B, REMIC III Regular Interest A-2C, REMIC
      III Regular Interest A-2D, REMIC III Regular Interest M-1, REMIC III Regular
      Interest M-2, REMIC III Regular Interest M-3, REMIC III Regular Interest M-4,
      REMIC III Regular Interest M-5, REMIC III Regular Interest M-6, REMIC III
      Regular Interest M-7, REMIC III Regular Interest M-8, REMIC
      III
      Regular Interest M-9,
      and
      REMIC III Regular Interest ZZ, with the rate on each such REMIC III Regular
      Interest (other than REMIC III Regular Interest ZZ) subject to a cap equal
      to
      the lesser of (i) the related One-Month LIBOR Pass-Through Rate and (ii) the
      related Net WAC Pass-Through Rate for the Corresponding Certificate for the
      purpose of this calculation for such Distribution Date and with the rate on
      REMIC III Regular Interest ZZ subject to a cap of zero for the purpose of this
      calculation; provided however, each such cap for each REMIC III Regular Interest
      (other than REMIC III Regular Interest ZZ) shall be multiplied by a fraction
      the
      numerator of which is the actual number of days in the related Interest Accrual
      Period and the denominator of which is 30.

     

    “Master
      Servicer”:
      As of
      the Closing Date, Wells Fargo Bank, National Association and thereafter, its
      respective successors in interest who meet the qualifications of this Agreement.
      The Master Servicer and the Securities Administrator shall at all times be
      the
      same Person or an Affiliate.

     

    “Master
      Servicer Event of Default”:
      One or
      more of the events described in Section 8.01(b).

     

    “Master
      Servicing Fee”:
      With
      respect to each Mortgage Loan and for any calendar month, an amount equal to
      one-twelfth of the product of the Master Servicing Fee Rate multiplied by the
      Scheduled Principal Balance of the Mortgage Loans as of the Due Date in the
      preceding calendar month.

     

    “Master
      Servicing Fee Rate”:
      0.000%
      per annum.

     

    
      
        
        

      

      
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    “Maximum
      ZZ Uncertificated Interest Deferral Amount”:
      With
      respect to any Distribution Date, the excess of (i) accrued interest at the
      REMIC III Remittance Rate applicable to REMIC III Regular Interest ZZ for such
      Distribution Date on a balance equal to the Uncertificated Balance of REMIC
      III
      Regular Interest ZZ minus the REMIC III Overcollateralization Amount, in each
      case for such Distribution Date, over (ii) Uncertificated Interest on REMIC
      III
      Regular Interest A-1, REMIC III Regular Interest A-2A, REMIC III Regular
      Interest A-2B, REMIC III Regular Interest A-2C, REMIC III Regular Interest
      A-2D,
      REMIC III Regular Interest M-1, REMIC III Regular Interest M-2, REMIC III
      Regular Interest M-3, REMIC III Regular Interest M-4, REMIC III Regular Interest
      M-5, REMIC III Regular Interest M-6, REMIC III Regular Interest M-7, REMIC
      III
      Regular Interest M-8, and REMIC III Regular Interest M-9 for such Distribution
      Date, with the rate on each such REMIC III Regular Interest subject to a cap
      equal to the lesser of (i) the related One-Month LIBOR Pass-Through Rate and
      (ii) the related Net WAC Pass-Through Rate for the Corresponding Certificate
      for
      the purpose of this calculation for such Distribution Date; provided however,
      each such cap for each REMIC III Regular Interest shall be multiplied by a
      fraction the numerator of which is the actual number of days in the related
      Interest Accrual Period and the denominator of which is 30.

     

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

     

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

     

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

     

    “Mezzanine
      Certificate”:
      Any
      Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class M-7,
      Class M-8 or Class M-9 Certificate.

     

    “MIN”:
      The
      Mortgage Identification Number for Mortgage Loans registered with MERS on the
      MERS® System.

     

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

     

    “Minimum
      Servicing Requirements”:
      With
      respect to a special servicer appointed pursuant to Section 7.06
      hereunder:

     

    (i) the
      proposed special servicer is (1) an affiliate of the Master Servicer that
      services mortgage loans similar to the Mortgage Loans in the jurisdictions
      in
      which the related Mortgaged Properties are located or (2) the proposed special
      servicer has a rating of at least “Above Average” by S&P and either a rating
      of at least “RPS2” by Fitch or a rating of at least “SQ2” by Moody’s;
      and

     

    (ii) the
      proposed special servicer has a net worth of at least $25,000,000.

     

    
      
        
        

      

      
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    “MOM
      Loan”:
      With
      respect to any Mortgage Loan, MERS acting as the mortgagee of such Mortgage
      Loan, solely as nominee for the originator of such Mortgage Loan and its
      successors and assigns, at the origination thereof.

     

    “Monthly
      Payment”:
      With
      respect to any Mortgage Loan, the scheduled monthly payment of principal and
      interest on such Mortgage Loan which is payable by the related Mortgagor from
      time to time under the related Mortgage Note, determined: (a) after giving
      effect to (i) any Deficient Valuation and/or Debt Service Reduction with respect
      to such Mortgage Loan and (ii) any reduction in the amount of interest
      collectible from the related Mortgagor pursuant to the Relief Act or similar
      state or local laws; (b) without giving effect to any extension granted or
      agreed to by the related Servicer pursuant to Section 3.01 of this Agreement
      or
      pursuant to the Servicing Agreement; and (c) on the assumption that all other
      amounts, if any, due under such Mortgage Loan are paid when due.

     

    “Moody’s”:
      Moody’s Investors Service, Inc. or any successor in interest.

     

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

     

    “Mortgage
      File”:
      The
      Mortgage Loan Documents pertaining to a particular Mortgage Loan.

     

    “Mortgage
      Loan”:
      Each
      mortgage loan transferred and assigned to the Trustee and the Mortgage Loan
      Documents for which have been delivered to the related Custodian pursuant to
      Section 2.01 of this Agreement and pursuant to the related Custodial Agreement,
      as held from time to time as a part of the Trust Fund, the Mortgage Loans so
      held being identified in the Mortgage Loan Schedule. After each Subsequent
      Transfer Date, Mortgage Loans shall include any Subsequent Mortgage Loans
      transferred to the Trust on such Subsequent Transfer Date.

     

    “Mortgage
      Loan Documents”:
      The
      documents evidencing or relating to each Mortgage Loan delivered to the
      applicable Custodian under the related Custodial Agreement on behalf of the
      Trustee.

     

    “Mortgage
      Loan Purchase Agreement”:
      Shall
      mean the Mortgage Loan Purchase Agreement dated as of April 30, 2007, between
      the Depositor and the Sponsor, a copy of which is attached hereto as
      Exhibit F.

     

    “Mortgage
      Loan Schedule”:
      As of
      any date, the list of Mortgage Loans included in REMIC I on such date,
      separately identifying the Group I Mortgage Loans and Group II Mortgage Loans,
      attached hereto as Schedule
      1.
      The
      Depositor shall deliver or cause the delivery of the initial Mortgage Loan
      Schedule to the Servicers, the Master Servicer, the Custodians and the Trustee
      on the Closing Date. The Mortgage Loan Schedule shall set forth the following
      information with respect to each Mortgage Loan:

     

    (i) the
      Mortgage Loan identifying number;

     

    
      
        
        

      

      
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    (ii) the
      Mortgagor’s first and last name;

     

    (iii) the
      street address of the Mortgaged Property including the state and zip
      code;

     

    (iv) a
      code
      indicating whether the Mortgaged Property is owner-occupied;

     

    (v) the
      type
      of Residential Dwelling constituting the Mortgaged Property;

     

    (vi) the
      original months to maturity;

     

    (vii) the
      original date of the Mortgage Loan and the remaining months to maturity from
      the
      Cut-off Date, based on the original amortization schedule;

     

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

     

    (ix) the
      Mortgage Rate in effect immediately following the Cut-off Date;

     

    (x) the
      date
      on which the first Monthly Payment was due on the Mortgage Loan;

     

    (xi) the
      stated maturity date;

     

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

     

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

     

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

     

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

     

    (xvi) the
      Stated Principal Balance of the Mortgage Loan as of the close of business on
      the
      Cut-off Date;

     

    (xvii) with
      respect to each Adjustable Rate Mortgage Loan, the first Adjustment
      Date;

     

    (xviii) with
      respect to each Adjustable Rate Mortgage Loan, the Gross Margin;

     

    (xix) a
      code
      indicating the purpose of the loan (i.e., purchase financing, rate/term
      refinancing, cash-out refinancing);

     

    (xx) with
      respect to each Adjustable Rate Mortgage Loan, the Maximum Mortgage Rate under
      the terms of the Mortgage Note;

     

    
      
        
        

      

      
        39

        
          

        

      

      
        
        

      

    

     

    (xxi) with
      respect to each Adjustable Rate Mortgage Loan, the Minimum Mortgage Rate under
      the terms of the Mortgage Note;

     

    (xxii) the
      Mortgage Rate at origination;

     

    (xxiii) with
      respect to each Adjustable Rate Mortgage Loan, the Periodic Rate
      Cap;

     

    (xxiv) with
      respect to each Adjustable Rate Mortgage Loan, the first Adjustment Date
      immediately following the Cut-off Date;

     

    (xxv) with
      respect to each Adjustable Rate Mortgage Loan, the Index;

     

    (xxvi) the
      date
      on which the first Monthly Payment was due on the Mortgage Loan and, if such
      date is not consistent with the Due Date currently in effect, such Due
      Date;

     

    (xxvii) a
      code
      indicating whether the Mortgage Loan is an Adjustable Rate Mortgage Loan or
      a
      fixed rate Mortgage Loan;

     

    (xxviii) 
      a code
      indicating the documentation style (i.e., full, stated or limited);

     

    (xxix) a
      code
      indicating if the Mortgage Loan is subject to a primary insurance policy or
      lender paid mortgage insurance policy and the name of the insurer and, if
      applicable, the rate payable in connection therewith;

     

    (xxx) the
      Appraised Value of the Mortgaged Property;

     

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

     

    (xxxii) a
      code
      indicating whether the Mortgage Loan is subject to a Prepayment Charge, the
      term
      of such Prepayment Charge and the amount of such Prepayment Charge;

     

    (xxxiii) the
      product type (e.g., 2/28, 15 year fixed, 30 year fixed, 15/30 balloon,
      etc.);

     

    (xxxiv) the
      Mortgagor’s debt to income ratio; 

     

    (xxxv) the
      FICO
      score at origination; 

     

    (xxxvi) with
      respect to each Mortgage Loan registered on MERS, the MIN;

     

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

     

    (xxxviii) the
      applicable Custodian; 

     

    
      
        
        

      

      
        40

        
          

        

      

      
        
        

      

    

     

    (xxxix) the
      applicable Servicer; and

     

    (xl) a
      code
      indicating whether the Mortgage Loan is an initial Mortgage Loan or a pre-funded
      Mortgage Loan.

     

    The
      Mortgage Loan Schedule shall set forth the following information with respect
      to
      the Mortgage Loans in the aggregate as of the Cut-off Date: (1) the number
      of
      Mortgage Loans; (2) the current principal balance of the Mortgage Loans; (3)
      the
      weighted average Mortgage Rate of the Mortgage Loans; and (4) the weighted
      average maturity of the Mortgage Loans. The Mortgage Loan Schedule shall be
      amended from time to time by the Depositor in accordance with the provisions
      of
      this Agreement. With respect to any Qualified Substitute Mortgage Loan, the
      Cut-off Date shall refer to the related Cut-off Date for such Mortgage Loan,
      determined in accordance with the definition of Cut-off Date
      herein.

     

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

     

    “Mortgage
      Rate”:
      With
      respect to each Mortgage Loan, the annual rate at which interest accrues on
      such
      Mortgage Loan from time to time in accordance with the provisions of the related
      Mortgage Note, which rate with respect to each Adjustable Rate Mortgage Loan
      (A)
      as of any date of determination until the first Adjustment Date following the
      Cut-off Date shall be the rate set forth in the Mortgage Loan Schedule as the
      Mortgage Rate in effect immediately following the Cut-off Date and (B) as of
      any
      date of determination thereafter shall be the rate as adjusted on the most
      recent Adjustment Date equal to the sum, rounded to the nearest 0.125% as
      provided in the Mortgage Note, of the Index, as most recently available as
      of a
      date prior to the Adjustment Date as set forth in the related Mortgage Note,
      plus the related Gross Margin; provided that the Mortgage Rate on such
      Adjustable Rate Mortgage Loan on any Adjustment Date shall never be more than
      the lesser of (i) the sum of the Mortgage Rate in effect immediately prior
      to
      the Adjustment Date plus the related Periodic Rate Cap, if any, and (ii) the
      related Maximum Mortgage Rate, and shall never be less than the greater of
      (i)
      the Mortgage Rate in effect immediately prior to the Adjustment Date less the
      Periodic Rate Cap, if any, and (ii) the related Minimum Mortgage Rate. With
      respect to each Mortgage Loan that becomes an REO Property, as of any date
      of
      determination, the annual rate determined in accordance with the immediately
      preceding sentence as of the date such Mortgage Loan became an REO
      Property.

     

    “Mortgaged
      Property”:
      The
      underlying property securing a Mortgage Loan, including any REO Property,
      consisting of an Estate in Real Property improved by a Residential
      Dwelling.

     

    “Mortgagor”:
      The
      obligor on a Mortgage Note.

     

    “Net
      Monthly Excess Cashflow”:
      With
      respect to any Distribution Date, the sum of (i) any Overcollateralization
      Reduction Amount for such Distribution Date and (ii) the excess of (x) the
      Available Distribution Amount for such Distribution Date over (y) the sum for
      such Distribution Date of (A) the aggregate Senior Interest Distribution Amounts
      payable to the Holders of the Class A Certificates, (B) the aggregate Interest
      Distribution Amounts payable to the holders of the Mezzanine Certificates,
      (C)
      the Principal Remittance Amount and (D) any Net Swap Payment or Swap Termination
      Payment (not caused by the occurrence of a Swap Provider Trigger Event) owed
      to
      the Swap Provider (to the extent such amount has not been paid by the Securities
      Administrator from any upfront payment received pursuant to any related
      replacement interest rate swap agreement that may be entered into by the Trustee
      on behalf of the Supplemental Interest Trust).

     

    
      
        
        

      

      
        41

        
          

        

      

      
        
        

      

    

     

    “Net
      Mortgage Rate”:
      With
      respect to any Mortgage Loan (or the related REO Property) as of any date of
      determination, a per annum rate of interest equal to the then applicable
      Mortgage Rate for such Mortgage Loan minus the Administration Fee
      Rate.

     

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

     

    “Net
      WAC Pass-Through Rate”:
      With
      respect to the Class A-1 Certificates and any Distribution Date, a rate per
      annum (adjusted for the actual number of days elapsed in the related Interest
      Accrual Period) equal to the product of (i) twelve and (ii) a fraction,
      expressed as a percentage, the numerator of which is the amount of interest
      which accrued on the Group I Mortgage Loans in the prior calendar month plus
      the
      amount withdrawn from the Group I Capitalized Interest Sub-Account minus the
      fees payable to the Servicers, the Master Servicer and the Credit Risk Manager
      with respect to the Group I Mortgage Loans for such Distribution Date and the
      Group I Allocation Percentage of any Net Swap Payment payable to the Swap
      Provider and Swap Termination Payment payable to the Swap Provider which was
      not
      caused by the occurrence of a Swap Provider Trigger Event (to the extent such
      amount has not been paid by the Securities Administrator from any upfront
      payment received pursuant to any related replacement interest rate swap
      agreement that may be entered into by the Trustee on behalf of the Supplemental
      Interest Trust), in each case for such Distribution Date and the denominator
      of
      which is the aggregate principal balance of the Group I Mortgage Loans as of
      the
      last day of the immediately preceding Due Period (or as of the Cut-off Date
      with
      respect to the first Distribution Date) after giving effect to Principal
      Prepayments received during the related Prepayment Period which were distributed
      on the immediately preceding Distribution Date plus any amounts on deposit
      in
      the Group I Pre-Funding Sub-Account. For federal income tax purposes, such
      rate
      shall be expressed as the weighted average of (adjusted for the actual number
      of
      days elapsed in the related Interest Accrual Period) the REMIC III Remittance
      Rate on REMIC III Regular Interest I-GRP, weighted on the basis of the
      Uncertificated Balance of such REMIC III Regular Interest.

     

    With
      respect to the Class A-2 Certificates and any Distribution Date, a rate per
      annum (adjusted for the actual number of days elapsed in the related Interest
      Accrual Period) equal to the product of (i) twelve and (ii) a fraction,
      expressed as a percentage, the numerator of which is the amount of interest
      which accrued on the Group II Mortgage Loans in the prior calendar month plus
      the amount withdrawn from the Group II Capitalized Interest Sub-Account minus
      the fees payable to the Servicers, the Master Servicer and the Credit Risk
      Manager with respect to the Group II Mortgage Loans for such Distribution Date
      and the Group II Allocation Percentage of any Net Swap Payment payable to the
      Swap Provider and Swap Termination Payment payable to the Swap Provider which
      was not caused by the occurrence of a Swap Provider Trigger Event (to the extent
      such amount has not been paid by the Securities Administrator from any upfront
      payment received pursuant to any related replacement interest rate swap
      agreement that may be entered into by the Trustee on behalf of the Supplemental
      Interest Trust), in each case for such Distribution Date and the denominator
      of
      which is the aggregate principal balance of the Group II Mortgage Loans as
      of
      the last day of the immediately preceding Due Period (or as of the Cut-off
      Date
      with respect to the first Distribution Date) after giving effect to Principal
      Prepayments received during the related Prepayment Period which were distributed
      on the immediately preceding Distribution Date plus any amounts on deposit
      in
      the Group II Pre-Funding Sub-Account. For federal income tax purposes, such
      rate
      shall be expressed as the weighted average of (adjusted for the actual number
      of
      days elapsed in the related Interest Accrual Period) the REMIC III Remittance
      Rate on REMIC III Regular Interest II-GRP, weighted on the basis of the
      Uncertificated Balance of such REMIC III Regular Interest.

     

    
      
        
        

      

      
        42

        
          

        

      

      
        
        

      

    

     

    With
      respect to the Mezzanine Certificates and any Distribution Date a rate per
      annum
      equal to the weighted average (weighted in proportion to the results of
      subtracting from the Scheduled Principal Balance of each loan group, the
      aggregate Certificate Principal Balance of the related Class A Certificates),
      of
      (i) the Net WAC Pass-Through Rate for the Class A-1 Certificates, and (ii)
      the
      Net WAC Pass-Through Rate for the Class A-2 Certificates. For federal income
      tax
      purposes, such rate shall be expressed as the weighted average of (adjusted
      for
      the actual number of days elapsed in the related Interest Accrual Period) the
      REMIC II Remittance Rates on (a) REMIC III Regular Interest I-SUB, subject
      to a
      cap and a floor equal to the REMIC III Remittance Rate on REMIC III Regular
      Interest I-GRP and (b) REMIC III Regular Interest III-SUB, subject to a cap
      and
      a floor equal to the REMIC III Remittance Rate on REMIC III Regular Interest
      II-GRP, weighted on the basis of the Uncertificated Balance of each such REMIC
      III Regular Interest.

     

    “Net
      WAC Rate Carryover Amount”:
      With
      respect to any Class A Certificate or Mezzanine Certificate and any Distribution
      Date on which the Pass-Through Rate is limited to the applicable Net WAC
      Pass-Through Rate, an amount equal to the sum of (i) the excess of (x) the
      amount of interest such Class would have been entitled to receive on such
      Distribution Date if the applicable Net WAC Pass-Through Rate would not have
      been applicable to such Class on such Distribution Date over (y) the amount
      of
      interest paid to such Class on such Distribution Date at the applicable Net
      WAC
      Pass-Through Rate plus (ii) the related Net WAC Rate Carryover Amount for the
      previous Distribution Date not previously distributed to such Class together
      with interest thereon at a rate equal to the Pass-Through Rate for such Class
      for the most recently ended Interest Accrual Period without taking into account
      the applicable Net WAC Pass-Through Rate.

     

    “New
      Lease”:
      Any
      lease of REO Property entered into on behalf of REMIC I, including any lease
      renewed or extended on behalf of REMIC I, if REMIC I has the right to
      renegotiate the terms of such lease.

     

    “NIMS
      Insurer”:
      Any
      insurer that is guaranteeing certain payments under notes secured by collateral
      which includes all or a portion of the Class CE-1 Certificates, the Class P
      Certificates and/or the Class R Certificates.

     

    
      
        
        

      

      
        43

        
          

        

      

      
        
        

      

    

     

    “Nonrecoverable
      P&I Advance”:
      Any
      P&I Advance previously made or proposed to be made in respect of a Mortgage
      Loan or REO Property that, in the good faith business judgment of the related
      Servicer or a successor to the Servicer (including the Master Servicer) will
      not
      or, in the case of a proposed P&I Advance, would not be ultimately
      recoverable from related Late Collections, Insurance Proceeds or Liquidation
      Proceeds on such Mortgage Loan or REO Property as provided herein or in the
      Servicing Agreement.

     

    “Nonrecoverable
      Servicing Advance”:
      Any
      Servicing Advance previously made or proposed to be made in respect of a
      Mortgage Loan or REO Property that, in the good faith business judgment of
      the
      related Servicer or a successor to the related Servicer (including the Master
      Servicer) will not or, in the case of a proposed Servicing Advance, would not
      be
      ultimately recoverable from related Late Collections, Insurance Proceeds or
      Liquidation Proceeds on such Mortgage Loan or REO Property as provided herein
      or
      in the Servicing Agreement.

     

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

     

    “Notional
      Amount”:
      With
      respect to the Class CE-1 Certificates and any Distribution Date, the
      Uncertificated Balance of the REMIC III Regular Interests (other than REMIC
      III
      Regular Interest P) for such Distribution Date. As of the Closing Date, the
      Notional Amount of the Class CE-1 Certificates is equal to $1,085,862,492.08.
      With respect to the Class CE-2 Certificates and any Distribution Date, the
      Notional Amount of the REMIC III Regular Interest CE-2 for such Distribution
      Date. With respect to the REMIC III Regular Interest CE-2 and any Distribution
      Date, the Notional Amount of the REMIC II Regular Interest I-CE-2 for such
      Distribution Date. With respect to REMIC II Regular Interest I-CE-2 and any
      Distribution Date, the Notional Amounts of the REMIC I Regular Interest LTCE2G
      and REMIC I Regular Interest LTCE2C. With respect to REMIC I Regular Interest
      LTCE2G and any Distribution Date, the sum of the aggregate principal balances
      of
      the GMAC Mortgage Loans for such Distribution Date. With respect to REMIC I
      Regular Interest LTCE2C and any Distribution Date, the sum of the aggregate
      principal balances of the Countrywide Mortgage Loans for such Distribution
      Date.

     

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

     

    

      
        	
                Distribution
                  Date

              	 	
                REMIC
                  II Regular Interests

              
	
                1st
                  through 7th 

              	 	
                I-1-A
                  through I-53-A and II-1-A through II-53-A 

              
	
                8

              	 	
                I-2-A
                  through I-53-A and II-2-A through II-53-A 

              
	
                9

              	 	
                I-3-A
                  through I-53-A and II-3-A through II-53-A 

              
	
                10

              	 	
                I-4-A
                  through I-53-A and II-4-A through II-53-A 

              
	
                11

              	 	
                I-5-A
                  through I-53-A and II-5-A through II-53-A 

              
	
                12

              	 	
                I-6-A
                  through I-53-A and II-6-A through II-53-A 

              
	
                13

              	 	
                I-7-A
                  through I-53-A and II-7-A through II-53-A 

              
	
                14

              	 	
                I-8-A
                  through I-53-A and II-8-A through II-53-A

              
	
                15

              	 	
                I-9-A
                  through I-53-A and II-9-A through II-53-A 

              
	
                16

              	 	
                I-10-A
                  through I-53-A and II-10-A through II-53-A 

              
	
                17

              	 	
                I-11-A
                  through I-53-A and II-11-A through II-53-A 

              
	
                18

              	 	
                I-12-A
                  through I-53-A and II-12-A through II-53-A

              

      

       

      
        
          
          

        

        
          44

          
            

          

        

        
          
          

        

      

       

      
        	
                Distribution
                  Date

              	 	
                REMIC
                  II Regular Interests

              
	
                19

              	 	
                I-13-A
                  through I-53-A and II-13-A through II-53-A 

              
	
                20

              	 	
                I-14-A
                  through I-53-A and II-14-A through II-53-A 

              
	
                21

              	 	
                I-15-A
                  through I-53-A and II-15-A through II-53-A 

              
	
                22

              	 	
                I-16-A
                  through I-53-A and II-16-A through II-53-A 

              
	
                23

              	 	
                I-17-A
                  through I-53-A and II-17-A through II-53-A 

              
	
                24

              	 	
                I-18-A
                  through I-53-A and II-18-A through II-53-A 

              
	
                25
                  

              	 	
                I-19-A
                  through I-53-A and II-19-A through II-53-A 

              
	
                26

              	 	
                I-20-A
                  through I-53-A and II-20-A through II-53-A 

              
	
                27

              	 	
                I-21-A
                  through I-53-A and II-21-A through II-53-A 

              
	
                28

              	 	
                I-22-A
                  through I-53-A and II-22-A through II-53-A 

              
	
                29

              	 	
                I-23-A
                  through I-53-A and II-23-A through II-53-A 

              
	
                30

              	 	
                I-24-A
                  through I-53-A and II-24-A through II-53-A 

              
	
                31

              	 	
                I-25-A
                  through I-53-A and II-25-A through II-53-A 

              
	
                32

              	 	
                I-26-A
                  through I-53-A and II-26-A through II-53-A 

              
	
                33

              	 	
                I-27-A
                  through I-53-A and II-27-A through II-53-A 

              
	
                34

              	 	
                I-28-A
                  through I-53-A and II-28-A through II-53-A 

              
	
                35

              	 	
                I-29-A
                  through I-53-A and II-29-A through II-53-A

              
	
                36th-37th

              	 	
                I-30-A
                  through I-53-A and II-30-A through II-53-A 

              
	
                38

              	 	
                I-31-A
                  through I-53-A and II-31-A through II-53-A 

              
	
                39

              	 	
                I-32-A
                  through I-53-A and II-32-A through II-53-A 

              
	
                40

              	 	
                I-33-A
                  through I-53-A and II-33-A through II-53-A 

              
	
                41

              	 	
                I-34-A
                  through I-53-A and II-34-A through II-53-A 

              
	
                42

              	 	
                I-35-A
                  through I-53-A and II-35-A through II-53-A 

              
	
                43

              	 	
                I-36-A
                  through I-53-A and II-36-A through II-53-A 

              
	
                44

              	 	
                I-37-A
                  through I-53-A and II-37-A through II-53-A 

              
	
                45

              	 	
                I-38-A
                  through I-53-A and II-38-A through II-53-A 

              
	
                46

              	 	
                I-39-A
                  through I-53-A and II-39-A through II-53-A 

              
	
                47

              	 	
                I-40-A
                  through I-53-A and II-40-A through II-53-A 

              
	
                48

              	 	
                I-41-A
                  through I-53-A and II-41-A through II-53-A 

              
	
                49

              	 	
                I-42-A
                  through I-53-A and II-42-A through II-53-A 

              
	
                50

              	 	
                I-43-A
                  through I-53-A and II-43-A through II-53-A 

              
	
                51

              	 	
                I-44-A
                  through I-53-A and II-44-A through II-53-A 

              
	
                52

              	 	
                I-45-A
                  through I-53-A and II-45-A through II-53-A 

              
	
                51

              	 	
                I-46-A
                  through I-53-A and II-46-A through II-53-A 

              
	
                51

              	 	
                I-47-A
                  through I-53-A and II-47-A through II-53-A 

              
	
                55

              	 	
                I-48-A
                  through I-53-A and II-48-A through II-53-A 

              
	
                56

              	 	
                I-49-A
                  through I-53-A and II-49-A through II-53-A 

              
	
                57

              	 	
                I-50-A
                  through I-53-A and II-50-A through II-53-A 

              
	
                58

              	 	
                I-51-A
                  through I-53-A and II-51-A through II-53-A 

              
	
                59

              	 	
                I-52-A
                  and I-53-A and II-52-A and II-53-A 

              
	
                60

              	 	
                I-53-A
                  and II-53-A 

              
	
                thereafter

              	 	
                $0.00

              

      
 

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

     

    “Ocwen”:
      Ocwen
      Loan Servicing, LLC or any successor thereto appointed hereunder in connection
      with the servicing and administration of the Ocwen Mortgage Loans.

     

    “Ocwen
      Mortgage Loans”:
      The
      Mortgage Loans serviced and administered by Ocwen the terms and conditions
      of
      this Agreement and identified as such on the Mortgage Loan
      Schedule.

     

    
      
        
        

      

      
        45

        
          

        

      

      
        
        

      

    

     

    “Offered
      Certificates”:
      The
      Class A Certificates and the Mezzanine Certificates, collectively.

     

    “Officer’s
      Certificate”:
      With
      respect to any Person, a certificate signed by the Chairman of the Board, the
      Vice Chairman of the Board, the President or a vice president (however
      denominated), or by the Treasurer, the Secretary, or one of the assistant
      treasurers or assistant secretaries of such Person (or, in the case of a Person
      that is not a corporation, signed by the person or persons having like
      responsibilities).

     

    “One-Month
      LIBOR”:
      With
      respect to the Class A Certificates, the Mezzanine Certificates, REMIC I Regular
      Interests, REMIC II Regular Interests, REMIC III Regular Interest A-1, REMIC
      III
      Regular Interest A-2A, REMIC III Regular Interest A-2B, REMIC III Regular
      Interest A-2C, REMIC III Regular Interest A-2D, REMIC III Regular Interest
      M-1,
      REMIC III Regular Interest M-2, REMIC III Regular Interest M-3, REMIC III
      Regular Interest M-4, REMIC III Regular Interest M-5, REMIC III Regular Interest
      M-6, REMIC III Regular Interest M-7, REMIC III Regular Interest M-8, REMIC
      III
      Regular Interest M-9 and any Interest Accrual Period therefor, the rate
      determined by the Securities Administrator on the related Interest Determination
      Date on the basis of the offered rate for one-month U.S. dollar deposits, as
      such rate appears on Telerate Page 3750 as of 11:00 a.m. (London time) on such
      Interest Determination Date; provided that if such rate does not appear on
      Telerate Page 3750, the rate for such date will be determined on the basis
      of
      the offered rates of the Reference Banks for one-month U.S. dollar deposits,
      as
      of 11:00 a.m. (London time) on such Interest Determination Date. In such event,
      the Securities Administrator will request the principal London office of each
      of
      the Reference Banks to provide a quotation of its rate. If on such Interest
      Determination Date, two or more Reference Banks provide such offered quotations,
      One-Month LIBOR for the related Interest Accrual Period shall be the arithmetic
      mean of such offered quotations (rounded upwards if necessary to the nearest
      whole multiple of 1/16). If on such Interest Determination Date, fewer than
      two
      Reference Banks provide such offered quotations, One-Month LIBOR for the related
      Interest Accrual Period shall be the higher of (i) LIBOR as determined on the
      previous Interest Determination Date and (ii) the Reserve Interest Rate.
      Notwithstanding the foregoing, if, under the priorities described above, LIBOR
      for an Interest Determination Date would be based on LIBOR for the previous
      Interest Determination Date for the third consecutive Interest Determination
      Date, the Securities Administrator shall select an alternative comparable index
      (over which the Securities Administrator has no control), used for determining
      one-month Eurodollar lending rates that is calculated and published (or
      otherwise made available) by an independent party. The establishment of
      One-Month LIBOR by the Securities Administrator and the Securities
      Administrator’s subsequent calculation of the One-Month LIBOR Pass-Through Rates
      for the relevant Interest Accrual Period, shall, in the absence of manifest
      error, be final and binding.

     

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

     

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

     

    
      
        
        

      

      
        46

        
          

        

      

      
        
        

      

    

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

    
      
        
        

      

      
        47

        
          

        

      

      
        
        

      

    

     

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

     

    “Optional
      Termination Date”:
      The
      first Distribution Date on which the aggregate principal balance of the Mortgage
      Loans (and properties acquired in respect thereof) remaining in the Trust Fund
      as of the last day of the related Due Period has been reduced to less than
      or
      equal to 10% of the sum of (i) the aggregate principal balance of the Mortgage
      Loans as of the Cut-off Date and (ii) the Original Pre-Funded
      Amount.

     

    “Original
      Group I Pre-Funded Amount”: The amount deposited by the Depositor in the Group I
      Pre-Funding Sub-Account on the Closing Date, which amount is
      $1,905,250.

     

    “Original
      Group II Pre-Funded Amount”: The amount deposited by the Depositor in the Group
      II Pre-Funding Sub-Account on the Closing Date, which amount is
      $5,709,188.

     

    “Original
      Pre-Funded Amount”: The sum of the Original Group I Pre-Funded Amount and the
      Original Group II Pre-Funded Amount.

     

    “Overcollateralization
      Amount”:
      With
      respect to any Distribution Date, the excess, if any, of (a) the sum of (i)
      the
      aggregate Stated Principal Balances of the Mortgage Loans (including any
      Subsequent Mortgage Loans transferred to the Trust) and REO Properties
      immediately following such Distribution Date and (ii) any funds on deposit
      in
      the Pre-Funding Account as of the related Determination Date (exclusive of
      any
      investment income therein) over (b) the sum of the aggregate Certificate
      Principal Balances of the Class A Certificates, the Mezzanine Certificates
      and
      the Class P Certificates as of such Distribution Date (after taking into account
      the payment of the Principal Remittance Amount on such Distribution
      Date).

     

    “Overcollateralization
      Increase Amount”:
      With
      respect to any Distribution Date, the amount of Net Monthly Excess Cashflow
      actually applied as an accelerated payment of principal to the Class A
      Certificates and the Mezzanine Certificates then entitled to distributions
      of
      principal to the extent the Required Overcollateralization Amount exceeds the
      Overcollateralization Amount.

     

    “Overcollateralization
      Reduction Amount”:
      With
      respect to any Distribution Date, the lesser of (i) the amount by which the
      Overcollateralization Amount exceeds the Required Overcollateralization Amount
      and (ii) the Principal Remittance Amount; provided however that on any
      Distribution Date on which a Trigger Event is in effect, the
      Overcollateralization Reduction Amount shall equal zero.

     

    “Ownership
      Interest”:
      As to
      any Certificate, any ownership or security interest in such Certificate,
      including any interest in such Certificate as the Holder thereof and any other
      interest therein, whether direct or indirect, legal or beneficial, as owner
      or
      as pledgee.

     

    “P&I
      Advance”:
      As to
      any Mortgage Loan or REO Property, any advance made by the related Servicer
      in
      respect of any Determination Date pursuant to (i) with respect to Ocwen and
      GMAC, Section 5.03 of this Agreement, or by an Advance Financing Person pursuant
      to Section 3.26 of this Agreement (ii) with respect to Countrywide, pursuant
      to
      the Servicing Agreement or (iii) with respect to a successor Servicer, pursuant
      to Section 8.02 of this Agreement (which advances shall not include principal
      or
      interest shortfalls due to bankruptcy proceedings or application of the Relief
      Act or similar state or local laws.)

     

    
      
        
        

      

      
        48

        
          

        

      

      
        
        

      

    

     

    “Pass-Through
      Rate”:
      With
      respect to the Class A Certificates and the Mezzanine Certificates, and any
      Distribution Date, a rate per annum equal to the lesser of (i) the related
      One-Month LIBOR Pass-Through Rate for such Distribution Date and (ii) the
      related Net WAC Pass-Through Rate for such Distribution Date.

     

    With
      respect to the Class CE-1 Certificates and any Distribution Date, a rate per
      annum equal to the percentage equivalent of a fraction, the numerator of which
      is the sum of the amounts calculated pursuant to clauses (i) through (xv) below,
      and the denominator of which is the aggregate Uncertificated Balances of REMIC
      III Regular Interest AA, REMIC III Regular Interest A-1, REMIC III Regular
      Interest A-2A, REMIC III Regular Interest A-2B, REMIC III Regular Interest
      A-2C,
      REMIC III Regular Interest A-2D, REMIC III Regular Interest M-1, REMIC III
      Regular Interest M-2, REMIC III Regular Interest M-3, REMIC III Regular Interest
      M-4, REMIC III Regular Interest M-5, REMIC III Regular Interest M-6, REMIC
      III
      Regular Interest M-7, REMIC III Regular Interest M-8, REMIC III Regular Interest
      M-9 and REMIC III Regular Interest ZZ. For purposes of calculating the
      Pass-Through Rate for the Class CE-1 Certificates, the numerator is equal to
      the
      sum of the following components:

     

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

     

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

     

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

     

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

     

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

     

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

     

    
      
        
        

      

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

    (xvii) 100%
      of
      the interest on REMIC III Regular Interest P.

     

    With
      respect to the Class CE-2 Certificates and any Distribution Date, an amount
      equal to 100% of the amounts distributed on REMIC III Regular Interest
      CE-2.

     

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

     

    
      
        
        

      

      
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    “PCAOB”:
       Means
      the
      Public Company Accounting Oversight Board.

     

    “Percentage
      Interest”:
      With
      respect to any Class of Certificates (other than the Residual Certificates),
      the
      undivided percentage ownership in such Class evidenced by such Certificate,
      expressed as a percentage, the numerator of which is the initial Certificate
      Principal Balance represented by such Certificate and the denominator of which
      is the aggregate initial Certificate Principal Balance or Notional Amount of
      all
      of the Certificates of such Class. The Class A Certificates and the Mezzanine
      Certificates are issuable only in minimum Percentage Interests corresponding
      to
      minimum initial Certificate Principal Balances of $25,000 and integral multiples
      of $1.00 in excess thereof. The Class P Certificates are issuable only in
      Percentage Interests corresponding to initial Certificate Principal Balances
      of
      $20 and integral multiples thereof. The Class CE-1 Certificates and Class CE-2
      Certificates are issuable only in minimum Percentage Interests corresponding
      to
      minimum initial Notional Amounts of $10,000 and integral multiples of $1.00
      in
      excess thereof; provided, however, that a single Certificate of each such Class
      of Certificates may be issued having a Percentage Interest corresponding to
      the
      remainder of the aggregate initial Notional Amount of such Class or to an
      otherwise authorized denomination for such Class plus such remainder. With
      respect to any Residual Certificate, the undivided percentage ownership in
      such
      Class evidenced by such Certificate, as set forth on the face of such
      Certificate. The Residual Certificates are issuable in Percentage Interests
      of
      20% and integral multiples of 5% in excess thereof.

     

    “Periodic
      Rate Cap”:
      With
      respect to each Adjustable Rate Mortgage Loan and any Adjustment Date therefor,
      the fixed percentage set forth in the related Mortgage Note, which is the
      maximum amount by which the Mortgage Rate for such Adjustable Rate Mortgage
      Loan
      may increase or decrease (without regard to the Maximum Mortgage Rate or the
      Minimum Mortgage Rate) on such Adjustment Date from the Mortgage Rate in effect
      immediately prior to such Adjustment Date.

     

    “Permitted
      Investments”:
      Any
      one or more of the following obligations or securities acquired at a purchase
      price of not greater than par, regardless of whether issued by the Depositor,
      the Servicers, the Master Servicer, the NIMS Insurer, the Trustee or any of
      their respective Affiliates:

     

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

     

    (ii) (A)
      demand and time deposits in, certificates of deposit of, bankers’ acceptances
      issued by or federal funds sold by any depository institution or trust company
      (including the Trustee or its agent acting in their respective commercial
      capacities) incorporated under the laws of the United States of America or
      any
      state thereof and subject to supervision and examination by federal and/or
      state
      authorities, so long as, at the time of such investment or contractual
      commitment providing for such investment, such depository institution or trust
      company (or, if the only Rating Agency is S&P, in the case of the principal
      depository institution in a depository institution holding company, debt
      obligations of the depository institution holding company) or its ultimate
      parent has a short-term uninsured debt rating in the highest available rating
      category of Moody’s and S&P and provided that each such investment has an
      original maturity of no more than 365 days; and provided further that, if the
      only Rating Agency is S&P and if the depository or trust company is a
      principal subsidiary of a bank holding company and the debt obligations of
      such
      subsidiary are not separately rated, the applicable rating shall be that of
      the
      bank holding company; and, provided further that, if the original maturity
      of
      such short-term obligations of a domestic branch of a foreign depository
      institution or trust company shall exceed 30 days, the short-term rating of
      such
      institution shall be A-1+ in the case of S&P if S&P is the Rating
      Agency; and (B) any other demand or time deposit or deposit which is fully
      insured by the FDIC;

     

    
      
        
        

      

      
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    (iii) repurchase
      obligations with a term not to exceed 30 days with respect to any security
      described in clause (i) above and entered into with a depository institution
      or
      trust company (acting as principal) rated A-1+ or higher by S&P, and A2 or
      higher by Moody’s, provided, however, that collateral transferred pursuant to
      such repurchase obligation must be of the type described in clause (i) above
      and
      must (A) be valued daily at current market prices plus accrued interest, (B)
      pursuant to such valuation, be equal, at all times, to 105% of the cash
      transferred by a party in exchange for such collateral and (C) be delivered
      to
      such party or, if such party is supplying the collateral, an agent for such
      party, in such a manner as to accomplish perfection of a security interest
      in
      the collateral by possession of certificated securities;

     

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

     

    (v) commercial
      paper (including both non-interest-bearing discount obligations and
      interest-bearing obligations payable on demand or on a specified date not more
      than 30 days after the date of acquisition thereof) that is rated by each Rating
      Agency that rates such securities in its highest short-term unsecured debt
      rating available at the time of such investment;

     

    (vi) units
      of
      money market funds that have been rated “AAAm” or “AAAm-G” by S&P or “Aaa”
by Moody’s including any such money market fund managed or advised by the Master
      Servicer, the Trustee or any of their Affiliates; and

     

    (vii) if
      previously confirmed in writing to the Trustee and consented to by the NIMS
      Insurer, any other demand, money market or time deposit, or any other
      obligation, security or investment, as may be acceptable to the Rating Agencies
      as a permitted investment of funds backing securities having ratings equivalent
      to its highest initial rating of the Class A Certificates;

     

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

     

    
      
        
        

      

      
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    “Permitted
      Transferee”:
      Any
      Transferee of a Residual Certificate other than a Disqualified Organization
      or
      Non-United States Person.

     

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

     

    “Plan”:
      Any
      employee benefit plan or certain other retirement plans and arrangements,
      including individual retirement accounts and annuities, Keogh plans and bank
      collective investment funds and insurance company general or separate accounts
      in which such plans, accounts or arrangements are invested, that are subject
      to
      ERISA or Section 4975 of the Code. 

     

    “Pre-Funding
      Account”:
      The
      account established and maintained pursuant to Section 3.27.

     

    “Pre-Funding
      Period”:
      The
      period from the Closing Date until the earlier of (i) the date on which the
      amount on deposit in the Pre-Funding Account (exclusive of investment income)
      is
      reduced to zero or (ii) July 29, 2007.

     

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

     

    “Prepayment
      Charge”:
      With
      respect to any Principal Prepayment, any prepayment premium, penalty or charge
      payable by a Mortgagor in connection with any Principal Prepayment on a Mortgage
      Loan pursuant to the terms of the related Mortgage Note.

     

    
      
        
        

      

      
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    “Prepayment
      Charge Schedule”:
      As of
      any date, the list of Mortgage Loans providing for a Prepayment Charge included
      in the Trust Fund on such date, attached hereto as Schedule 2 (including the
      prepayment charge summary attached thereto). The Depositor shall deliver or
      cause the delivery of the Prepayment Charge Schedule to the Servicers, the
      Master Servicer and the Trustee on the Closing Date. The Prepayment Charge
      Schedule shall set forth the following information with respect to each
      Prepayment Charge:

     

    (i) the
      Mortgage Loan identifying number;

     

    (ii) a
      code
      indicating the type of Prepayment Charge;

     

    (iii) the
      date
      on which the first Monthly Payment was due on the related Mortgage
      Loan;

     

    (iv) the
      term
      of the related Prepayment Charge;

     

    (v) the
      original Stated Principal Balance of the related Mortgage Loan; and

     

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

     

    “Prepayment
      Interest Excess”:
      With
      respect to each Ocwen Mortgage Loan or GMAC Mortgage Loan that was the subject
      of a Principal Prepayment in full during the portion of the related Prepayment
      Period occurring between the first day of the calendar month in which such
      Distribution Date occurs and the fifteenth (15th)
      day of
      the calendar month in which such Distribution Date occurs, an amount equal
      to
      interest (to the extent received) at the applicable Net Mortgage Rate on the
      amount of such Principal Prepayment for the number of days commencing on the
      first day of the calendar month in which such Distribution Date occurs and
      ending on the last date through which interest is collected from the related
      Mortgagor. Ocwen and GMAC may withdraw such Prepayment Interest Excess from
      the
      related Collection Account in accordance with Section 3.09(a)(x). The
      entitlement of Countrywide, if any, with respect to Prepayment Interest Excess
      is set forth in the Servicing Agreement.

     

    “Prepayment
      Interest Shortfall”:
      With
      respect to any Distribution Date, for each such Mortgage Loan that was the
      subject of a Principal Prepayment in full or in part during the portion of
      the
      related Prepayment Period occurring between the first day of the related
      Prepayment Period and the last day of the calendar month preceding the month
      in
      which such Distribution Date occurs that was applied by the related Servicer
      to
      reduce the outstanding principal balance of such Mortgage Loan on a date
      preceding the Due Date in the succeeding Prepayment Period, an amount equal
      to
      interest at the applicable Net Mortgage Rate on the amount of such Principal
      Prepayment for the number of days commencing on the date on which the prepayment
      is applied and ending on the last day of the calendar month preceding such
      Distribution Date. The obligations of Servicers in respect of any Prepayment
      Interest Shortfalls are set forth in Section 3.23 of this Agreement or the
      Servicing Agreement, as applicable. The obligations of the Master Servicer
      in
      respect of any Prepayment Interest Shortfalls are set forth in Section 4.19
      of
      this Agreement.

     

    
      
        
        

      

      
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    “Prepayment
      Period”:
      For
      any
      Distribution Date and (A) the Ocwen Mortgage Loans (i) with respect to Principal
      Prepayments in part, the calendar month immediately preceding the month in
      which
      the related Distribution Date occurs and (ii) with respect to Principal
      Prepayments in full, the period from the 16th day of the month immediately
      preceding the month in which the related Distribution Date occurs (or with
      respect to the first Prepayment Period, the period commencing on the Cut-off
      Date) to the 15th day of the month in which such Distribution Date occurs and
      (B) the GMAC Mortgage Loans and the Countrywide Mortgage Loans, the period
      from
      the 16th day of the month immediately preceding the month in which the related
      Distribution Date occurs (or with respect to the first Prepayment Period, the
      period commencing on the Cut-off Date) to the 15th day of the month in which
      such Distribution Date occurs.

     

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

     

    “Principal
      Distribution Amount”:
      With
      respect to any Distribution Date is the sum of the Group I Principal
      Distribution Amount and the Group II Principal Distribution Amount.

     

    “Principal
      Remittance Amount”:
      With
      respect to any Distribution Date is the sum of the Group I Principal Remittance
      Amount and the Group II Principal Remittance Amount.

     

    “Purchase
      Price”:
      With
      respect to any Mortgage Loan or REO Property to be purchased pursuant to or
      as
      contemplated by Section 2.03, Section 3.13(c) or Section 10.01 of this
      Agreement, and as confirmed by a certification of a Servicing Officer to the
      Trustee, an amount equal to the sum of (i) 100% of the Stated Principal Balance
      thereof as of the date of purchase (or such other price as provided in Section
      10.01), (ii) in the case of (x) a Mortgage Loan, accrued interest on such Stated
      Principal Balance at the applicable Net Mortgage Rate in effect from time to
      time from the Due Date as to which interest was last covered by a payment by
      the
      Mortgagor or a P&I Advance by the related Servicer, which payment or P&I
      Advance had as of the date of purchase been distributed pursuant to Section
      5.01, through the end of the calendar month in which the purchase is to be
      effected and (y) an REO Property, the sum of (1) accrued interest on such Stated
      Principal Balance at the applicable Net Mortgage Rate in effect from time to
      time from the Due Date as to which interest was last covered by a payment by
      the
      Mortgagor or a P&I Advance by the related Servicer through the end of the
      calendar month immediately preceding the calendar month in which such REO
      Property was acquired, plus (2) REO Imputed Interest for such REO Property
      for
      each calendar month commencing with the calendar month in which such REO
      Property was acquired and ending with the calendar month in which such purchase
      is to be effected, net of the total of all net rental income, Insurance
      Proceeds, Liquidation Proceeds and P&I Advances that as of the date of
      purchase had been distributed as or to cover REO Imputed Interest pursuant
      to
      Section 5.01, (iii) any unreimbursed Servicing Advances and P&I Advances
      (including Nonrecoverable P&I Advances and Nonrecoverable Servicing
      Advances) and any unpaid Servicing Fees allocable to such Mortgage Loan or
      REO
      Property and (iv) in the case of a Mortgage Loan required to be purchased
      pursuant to Section 2.03, expenses reasonably incurred or to be incurred by the
      NIMS Insurer, the related Servicer or the Trustee in respect of the breach
      or
      defect giving rise to the purchase obligation and any costs and damages incurred
      by the Trust Fund and the Trustee in connection with any violation by any such
      Mortgage Loan of any predatory or abusive lending law.

     

    
      
        
        

      

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

     

    “Qualified
      Substitute Mortgage Loan”:
      A
      mortgage loan substituted for a Deleted Mortgage Loan pursuant to the terms
      of
      this Agreement which must, on the date of such substitution, (i) have an
      outstanding principal balance, after application of all scheduled payments
      of
      principal and interest due during or prior to the month of substitution, not
      in
      excess of the Scheduled Principal Balance of the Deleted Mortgage Loan as of
      the
      Due Date in the calendar month during which the substitution occurs, (ii) have
      a
      Mortgage Rate not less than (and not more than one percentage point in excess
      of) the Mortgage Rate of the Deleted Mortgage Loan, (iii) if the mortgage loan
      is an Adjustable Rate Mortgage Loan, have a Maximum Mortgage Rate not less
      than
      the Maximum Mortgage Rate on the Deleted Mortgage Loan, (iv) if the mortgage
      loan is an Adjustable Rate Mortgage Loan, have a Minimum Mortgage Rate not
      less
      than the Minimum Mortgage Rate of the Deleted Mortgage Loan, (v) if the mortgage
      loan is an Adjustable Rate Mortgage Loan, have a Gross Margin equal to the
      Gross
      Margin of the Deleted Mortgage Loan, (vi) if the mortgage loan is an Adjustable
      Rate Mortgage Loan, have a next Adjustment Date not more than two months later
      than the next Adjustment Date on the Deleted Mortgage Loan, (vii) have a
      remaining term to maturity not greater than (and not more than one year less
      than) that of the Deleted Mortgage Loan, (viii) have the same Due Date as the
      Due Date on the Deleted Mortgage Loan, (ix) have a Loan-to-Value Ratio as of
      the
      date of substitution equal to or lower than the Loan-to-Value Ratio of the
      Deleted Mortgage Loan as of such date, (x) be secured by the same lien priority
      on the related Mortgaged Property as the Deleted Mortgage Loan, (xi) have a
      credit grade at least equal to the credit grading assigned on the Deleted
      Mortgage Loan, (xii) be a “qualified mortgage” as defined in the REMIC
      Provisions and (xiii) conform to each representation and warranty set forth
      in
      Section 6 of the Mortgage Loan Purchase Agreement applicable to the Deleted
      Mortgage Loan. In the event that one or more mortgage loans are substituted
      for
      one or more Deleted Mortgage Loans, the amounts described in clause (i) hereof
      shall be determined on the basis of aggregate principal balances, the Mortgage
      Rates described in clause (ii) hereof shall be determined on the basis of
      weighted average Mortgage Rates, the terms described in clause (vii) hereof
      shall be determined on the basis of weighted average remaining term to maturity,
      the Loan-to-Value Ratios described in clause (ix) hereof shall be satisfied
      as
      to each such mortgage loan, the credit grades described in clause (x) hereof
      shall be satisfied as to each such mortgage loan and, except to the extent
      otherwise provided in this sentence, the representations and warranties
      described in clause (xiii) hereof must be satisfied as to each Qualified
      Substitute Mortgage Loan or in the aggregate, as the case may be.

     

    “Rate/Term
      Refinancing”:
      A
      Refinanced Mortgage Loan, the proceeds of which are not more than a nominal
      amount in excess of the existing first mortgage loan and any subordinate
      mortgage loan on the related Mortgaged Property and related closing costs,
      and
      were used exclusively (except for such nominal amount) to satisfy the then
      existing first mortgage loan and any subordinate mortgage loan of the Mortgagor
      on the related Mortgaged Property and to pay related closing costs.

     

    
      
        
        

      

      
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    “Rating
      Agency or Rating Agencies”:
      Moody’s and S&P or their successors. If such agencies or their successors
      are no longer in existence, “Rating Agencies” shall be such nationally
      recognized statistical rating agencies, or other comparable Persons, designated
      by the Depositor, notice of which designation shall be given to the Trustee
      and
      the Servicers.

     

    “Realized
      Loss”:
      With
      respect to each Mortgage Loan as to which a Final Recovery Determination has
      been made, an amount (not less than zero), as reported by the Servicer to the
      Master Servicer (in substantially the form of Schedule 4 hereto or in the form
      specified in the Servicing Agreement) equal to (i) the unpaid principal balance
      of such Mortgage Loan as of the commencement of the calendar month in which
      the
      Final Recovery Determination was made, plus (ii) accrued interest from the
      Due
      Date as to which interest was last paid by the Mortgagor through the end of
      the
      calendar month in which such Final Recovery Determination was made, calculated
      in the case of each calendar month during such period (A) at an annual rate
      equal to the annual rate at which interest was then accruing on such Mortgage
      Loan and (B) on a principal amount equal to the Stated Principal Balance of
      such
      Mortgage Loan as of the close of business on the Distribution Date during such
      calendar month, plus (iii) any amounts previously withdrawn from the Collection
      Account in respect of such Mortgage Loan pursuant to Section 3.09(a)(ix) and
      Section 3.13(b) of this Agreement or pursuant to the Servicing Agreement, as
      applicable, minus (iv) the proceeds, if any, received in respect of such
      Mortgage Loan during the calendar month in which such Final Recovery
      Determination was made, net of amounts that are payable therefrom to the related
      Servicer with respect to such Mortgage Loan pursuant to Section 3.09(a)(iii)
      of
      this Agreement or pursuant to the Servicing Agreement, as applicable.

     

    With
      respect to any REO Property as to which a Final Recovery Determination has
      been
      made, an amount (not less than zero) equal to (i) the unpaid principal balance
      of the related Mortgage Loan as of the date of acquisition of such REO Property
      on behalf of REMIC I, plus (ii) accrued interest from the Due Date as to which
      interest was last paid by the Mortgagor in respect of the related Mortgage
      Loan
      through the end of the calendar month immediately preceding the calendar month
      in which such REO Property was acquired, calculated in the case of each calendar
      month during such period (A) at an annual rate equal to the annual rate at
      which
      interest was then accruing on the related Mortgage Loan and (B) on a principal
      amount equal to the Stated Principal Balance of the related Mortgage Loan as
      of
      the close of business on the Distribution Date during such calendar month,
      plus
      (iii) REO Imputed Interest for such REO Property for each calendar month
      commencing with the calendar month in which such REO Property was acquired
      and
      ending with the calendar month in which such Final Recovery Determination was
      made, plus (iv) any amounts previously withdrawn from the Collection Account
      in
      respect of the related Mortgage Loan pursuant to Section 3.09(a)(ix) and Section
      3.13(b) of this Agreement or pursuant to corresponding sections of the Servicing
      Agreement, minus (v) the aggregate of all P&I Advances and Servicing
      Advances (in the case of Servicing Advances, without duplication of amounts
      netted out of the rental income, Insurance Proceeds and Liquidation Proceeds
      described in clause (vi) below) made by the related Servicer in respect of
      such
      REO Property or the related Mortgage Loan for which the related Servicer has
      been or, in connection with such Final Recovery Determination, will be
      reimbursed pursuant to Section 3.22 of this Agreement or pursuant to the
      Servicing Agreement, as applicable out of rental income, Insurance Proceeds
      and
      Liquidation Proceeds received in respect of such REO Property, minus (vi) the
      total of all net rental income, Insurance Proceeds and Liquidation Proceeds
      received in respect of such REO Property that has been, or in connection with
      such Final Recovery Determination, will be transferred to the Distribution
      Account pursuant to Section 3.22 of this Agreement or pursuant to the Servicing
      Agreement, as applicable.

     

    
      
        
        

      

      
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    With
      respect to each Mortgage Loan which has become the subject of a Deficient
      Valuation, the difference between the principal balance of the Mortgage Loan
      outstanding immediately prior to such Deficient Valuation and the principal
      balance of the Mortgage Loan as reduced by the Deficient Valuation.

     

    With
      respect to each Mortgage Loan which has become the subject of a Debt Service
      Reduction, the portion, if any, of the reduction in each affected Monthly
      Payment attributable to a reduction in the Mortgage Rate imposed by a court
      of
      competent jurisdiction. Each such Realized Loss shall be deemed to have been
      incurred on the Due Date for each affected Monthly Payment.

     

    To
      the
      extent a Servicer receives Subsequent Recoveries with respect to any Mortgage
      Loan, the amount of Realized Loss with respect to that Mortgage Loan will be
      reduced to the extent such recoveries are applied to reduce the Certificate
      Principal Balance of any Class of Certificates on any Distribution
      Date.

     

    “Record
      Date”:
      With
      respect to each Distribution Date and the Class A Certificates and the Mezzanine
      Certificates, the Business Day immediately preceding such Distribution Date
      for
      so long as such Certificates are Book-Entry Certificates. With respect to each
      Distribution Date and any other Class of Certificates, including any Definitive
      Certificates, the last day of the calendar month immediately preceding the
      month
      in which such Distribution Date occurs.

     

    “Reference
      Banks”:
      Barclays Bank PLC, The Tokyo Mitsubishi Bank and National Westminster Bank
      PLC
      and their successors in interest; provided, however, that if any of the
      foregoing banks are not suitable to serve as a Reference Bank, then any leading
      banks selected by the Securities Administrator (after consultation with the
      NIMS
      Insurer) which are engaged in transactions in Eurodollar deposits in the
      International Eurocurrency market (i) with an established place of business
      in
      London, (ii) not controlling, under the control of or under common control
      with
      the Depositor or any Affiliate thereof and (iii) which have been designated
      as
      such by the Securities Administrator.

     

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

     

    “Regular
      Certificate”:
      Any
      Class A Certificate, Mezzanine Certificate, Class CE-1 Certificate, Class CE-2
      Certificate or Class P Certificate.

     

    “Regular
      Interest”:
      A
“regular interest” in a REMIC within the meaning of Section 860G(a)(1) of the
      Code.

     

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

     

    
      
        
        

      

      
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    “Relevant
      Servicing Criteria”:
      Means
      the Servicing Criteria applicable to the various parties, as set forth on
      Exhibit E attached hereto. For clarification purposes, multiple parties can
      have
      responsibility for the same Relevant Servicing Criteria. With respect to a
      Servicing Function Participant engaged by the Master Servicer, the Securities
      Administrator, the Trustee or a Servicer, the term “Relevant Servicing Criteria”
may refer to a portion of the Relevant Servicing Criteria applicable to such
      parties.

     

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

     

    “Relief
      Act Interest Shortfall”:
      With
      respect to any Distribution Date and any Mortgage Loan, any reduction in the
      amount of interest collectible on such Mortgage Loan for the most recently
      ended
      Due Period as a result of the application of the Relief Act. 

     

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

     

    “REMIC
      I”:
      The
      segregated pool of assets subject hereto, constituting the primary trust created
      hereby and to be administered hereunder, with respect to which a REMIC election
      is to be made, consisting of: (i) such Mortgage Loans and Prepayment Charges
      as
      from time to time are subject to this Agreement, together with the Mortgage
      Files relating thereto, and together with all collections thereon and proceeds
      thereof; (ii) any REO Property, together with all collections thereon and
      proceeds thereof; (iii) the Trustee’s rights with respect to the Mortgage Loans
      under all insurance policies required to be maintained pursuant to this
      Agreement and any proceeds thereof; (iv) the Depositor’s rights under the
      Mortgage Loan Purchase Agreement (including any security interest created
      thereby), the Assignment Agreement and the Servicing Agreement; and (v) the
      Collection Accounts, the Distribution Account and any REO Account, and such
      assets that are deposited therein from time to time and any investments thereof,
      together with any and all income, proceeds and payments with respect thereto.
      Notwithstanding the foregoing, however, REMIC I specifically excludes (i) all
      payments and other collections of principal and interest due on the Mortgage
      Loans on or before the Cut-off Date and all Prepayment Charges payable in
      connection with Principal Prepayments made before the Cut-off Date; (ii) the
      Reserve Fund and any amounts on deposit therein from time to time and any
      proceeds thereof; (iii) the Swap Agreement; (iv) the Cap Contracts; (v) the
      Supplemental Interest Trust and (vi) the Pre-Funding Account.

     

    “REMIC
      I
      Regular Interest”: Any of the separate non-certificated beneficial ownership
      interests in REMIC I issued hereunder and designated as a “regular interest” in
      REMIC I. Each REMIC I Regular Interest shall accrue interest at the related
      REMIC I Remittance Rate in effect from time to time, and shall be entitled
      to
      distributions of principal, subject to the terms and conditions hereof, in
      an
      aggregate amount equal to its initial Uncertificated Balance as set forth in
      the
      Preliminary Statement hereto. The designations for the respective REMIC I
      Regular Interests are set forth in the Preliminary Statement
      hereto.

     

    
      
        
        

      

      
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    “REMIC
      I
      Remittance Rate”: With respect to REMIC I Regular Interest LT1 and REMIC I
      Regular Interest LTP, and (i) for the first three Distribution Dates, the
      weighted average of the Expense Adjusted Mortgage Rates of the Initial Group
      I
      Mortgage Loans and (ii) thereafter, the weighted average of the Expense Adjusted
      Mortgage Rates of the Group I Mortgage Loans. With respect to REMIC I Regular
      Interest LT2, and (i) for the first three Distribution Dates, the weighted
      average of the Expense Adjusted Mortgage Rates of the Initial Group II Mortgage
      Loans and (ii) thereafter, the weighted average of the Expense Adjusted Mortgage
      Rates of the Group II Mortgage Loans. With respect to REMIC I Regular Interest
      LT1PF and (i) the first three Distribution Dates, 0.00% and (ii) thereafter,
      the
      weighted average of the Expense Adjusted Mortgage Rates of the Group I Mortgage
      Loans. With respect to REMIC I Regular Interest LT2PF and (i) the first three
      Distribution Dates, 0.00% and (ii) thereafter, the weighted average of the
      Expense Adjusted Mortgage Rates of the Group II Mortgage Loans. With respect
      to
      REMIC I Regular Interest LTCE2G, a weighted average per annum rate, determined
      on a Mortgage Loan by Mortgage Loan basis (and solely with respect to the GMAC
      Mortgage Loans), equal to the excess, if any, of (i) the excess of (a) the
      Mortgage Rate for each such Mortgage Loan over (b) the sum of the (w) GMAC
      Servicing Fee Rate, (x) Master Servicing Fee Rate and (y) Credit Risk Manager
      Fee Rate, over (ii) the Net Mortgage Rate of each such Mortgage Loan. With
      respect to REMIC I Regular Interest LTCE2C, a weighted average per annum rate,
      determined on a Mortgage Loan by Mortgage Loan basis (and solely with respect
      to
      the Countrywide Mortgage Loans), equal to the excess, if any, of (i) the excess
      of (a) the Mortgage Rate for each such Mortgage Loan over (b) the sum of the
      (x)
      Countrywide Servicing Fee Rate, (y) Master Servicing Fee Rate and (z) Credit
      Risk Manager Fee Rate, over (ii) the Net Mortgage Rate of each such Mortgage
      Loan.

     

    “REMIC
      II Group I Regular Interests”:
      REMIC
      II Regular Interest I and REMIC II Regular Interest I-1-A through REMIC II
      Regular Interest I-53-B as designated in the Preliminary Statement
      hereto.

     

    “REMIC
      II Group II Regular Interests”:
      REMIC
      II Regular Interest II and REMIC II Regular Interest II-1-A through REMIC III
      Regular Interest II-53-B as designated in the Preliminary Statement
      hereto.

     

    “REMIC
      II Regular Interest”:
      Any of
      the separate non-certificated beneficial ownership interests in REMIC II issued
      hereunder and designated as a “regular interest” in REMIC II. Each REMIC II
      Regular Interest shall accrue interest at the related REMIC II Remittance Rate
      in effect from time to time, and shall be entitled to distributions of
      principal, subject to the terms and conditions hereof, in an aggregate amount
      equal to its initial Uncertificated Balance as set forth in the Preliminary
      Statement hereto. 

     

    “REMIC
      II Remittance Rate”:
      With
      respect to REMIC II Regular Interest I, a per annum rate equal to the weighted
      average of the Net Mortgage Rates of the Group I Mortgage Loans. With respect
      to
      each REMIC II Group I Regular Interest ending with the designation “A”, a per
      annum rate equal to the weighted average of the Net Mortgage Rates of the Group
      I Mortgage Loans multiplied by 2, subject to a maximum rate of 9.9350%. With
      respect to each REMIC II Group I Regular Interest ending with the designation
      “B”, the greater of (x) a per annum rate equal to the excess, if any, of (i) 2
      multiplied by the weighted average of the Net Mortgage Rates of the Group I
      Mortgage Loans over (ii) 9.9350% and (y) 0.00%. With respect to REMIC II Regular
      Interest II, a per annum rate equal to the weighted average of the Net Mortgage
      Rates of the Group II Mortgage Loans. With respect to each REMIC II Group II
      Regular Interest ending with the designation “A”, a per annum rate equal to the
      weighted average of the Net Mortgage Rates of the Group II Mortgage Loans
      multiplied by 2, subject to a maximum rate of 9.9350%. With respect to each
      REMIC II Group II Regular Interest ending with the designation “B”, the greater
      of (x) a per annum rate equal to the excess, if any, of (i) 2 multiplied by
      the
      weighted average of the Net Mortgage Rates of the Group II Mortgage Loans over
      (ii) 9.9350% and (y) 0.00%. With respect to REMIC II Regular Interest CE-2,
      an
      amount equal to 100% of the amounts distributed on REMIC I Regular Interest
      LTCE2G and REMIC I Regular Interest LTCE2C.

     

    
      
        
        

      

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

     

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

     

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

     

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

     

    “REMIC
      III Principal Loss Allocation Amount”:
      With
      respect to any Distribution Date, an amount equal to (a) the product of (i)
      50%
      of the aggregate Stated Principal Balance of the Mortgage Loans and REO
      Properties then outstanding and (ii) 1 minus a fraction, the numerator of which
      is two times the aggregate of the Uncertificated Balances of REMIC III Regular
      Interest A-1, REMIC III Regular Interest A-2A, REMIC III Regular Interest A-2B,
      REMIC III Regular Interest A-2C, REMIC III Regular Interest A-2D, REMIC III
      Regular Interest M-1, REMIC III Regular Interest M-2, REMIC III Regular Interest
      M-3, REMIC III Regular Interest M-4, REMIC III Regular Interest M-5, REMIC
      III
      Regular Interest M-6, REMIC III Regular Interest M-7, REMIC III Regular Interest
      M-8 and REMIC III Regular Interest M-9 and the denominator of which is the
      aggregate of the Uncertificated Balances of REMIC III Regular Interest A-1,
      REMIC III Regular Interest A-2A, REMIC III Regular Interest A-2B, REMIC III
      Regular Interest A-2C, REMIC III Regular Interest A-2D, REMIC III Regular
      Interest M-1, REMIC III Regular Interest M-2, REMIC III Regular Interest M-3,
      REMIC III Regular Interest M-4, REMIC III Regular Interest M-5, REMIC III
      Regular Interest M-6, REMIC III Regular Interest M-7, REMIC III Regular Interest
      M-8, REMIC III Regular Interest M-9 and REMIC III Regular Interest
      ZZ.

     

    
      
        
        

      

      
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    “REMIC
      III Regular Interest”:
      Any of
      the separate non-certificated beneficial ownership interests in REMIC III issued
      hereunder and designated as a “regular interest” in REMIC III. Each REMIC III
      Regular Interest shall accrue interest at the related REMIC III Remittance
      Rate
      in effect from time to time, and shall be entitled to distributions of
      principal, subject to the terms and conditions hereof, in an aggregate amount
      equal to its initial Uncertificated Balance as set forth in the Preliminary
      Statement hereto. The designations for the respective REMIC III Regular
      Interests are set forth in the Preliminary Statement hereto.

     

    “REMIC
      III Regular Interest AA”:
      One of
      the separate non-certificated beneficial ownership interests in REMIC III issued
      hereunder and designated as a Regular Interest in REMIC III. REMIC III Regular
      Interest AA shall accrue interest at the related REMIC III Remittance Rate
      in
      effect from time to time, and shall be entitled to distributions of principal,
      subject to the terms and conditions hereof, in an aggregate amount equal to
      its
      initial Uncertificated Balance as set forth in the Preliminary Statement
      hereto.

     

    “REMIC
      III Regular Interest A-1”:
      One of
      the separate non-certificated beneficial ownership interests in REMIC III issued
      hereunder and designated as a Regular Interest in REMIC III. REMIC III Regular
      Interest A-1 shall accrue interest at the related REMIC III Remittance Rate
      in
      effect from time to time, and shall be entitled to distributions of principal,
      subject to the terms and conditions hereof, in an aggregate amount equal to
      its
      initial Uncertificated Balance as set forth in the Preliminary Statement
      hereto.

     

    “REMIC
      III Regular Interest A-2A”:
      One of
      the separate non-certificated beneficial ownership interests in REMIC III issued
      hereunder and designated as a Regular Interest in REMIC III. REMIC III Regular
      Interest A-2A shall accrue interest at the related REMIC III Remittance Rate
      in
      effect from time to time, and shall be entitled to distributions of principal,
      subject to the terms and conditions hereof, in an aggregate amount equal to
      its
      initial Uncertificated Balance as set forth in the Preliminary Statement
      hereto.

     

    “REMIC
      III Regular Interest A-2B”:
      One of
      the separate non-certificated beneficial ownership interests in REMIC III issued
      hereunder and designated as a Regular Interest in REMIC III. REMIC III Regular
      Interest A-2B shall accrue interest at the related REMIC III Remittance Rate
      in
      effect from time to time, and shall be entitled to distributions of principal,
      subject to the terms and conditions hereof, in an aggregate amount equal to
      its
      initial Uncertificated Balance as set forth in the Preliminary Statement
      hereto.

     

    
      
        
        

      

      
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    “REMIC
      III Regular Interest A-2C”:
      One of
      the separate non-certificated beneficial ownership interests in REMIC III issued
      hereunder and designated as a Regular Interest in REMIC III. REMIC III Regular
      Interest A-2C shall accrue interest at the related REMIC III Remittance Rate
      in
      effect from time to time, and shall be entitled to distributions of principal,
      subject to the terms and conditions hereof, in an aggregate amount equal to
      its
      initial Uncertificated Balance as set forth in the Preliminary Statement
      hereto.

     

    “REMIC
      III Regular Interest A-2D”:
      One of
      the separate non-certificated beneficial ownership interests in REMIC III issued
      hereunder and designated as a Regular Interest in REMIC III. REMIC III Regular
      Interest A-2D shall accrue interest at the related REMIC III Remittance Rate
      in
      effect from time to time, and shall be entitled to distributions of principal,
      subject to the terms and conditions hereof, in an aggregate amount equal to
      its
      initial Uncertificated Balance as set forth in the Preliminary Statement
      hereto.

     

    “REMIC
      III Regular Interest CE-2”:
      One of
      the separate non-certificated beneficial ownership interests in REMIC III issued
      hereunder and designated as a Regular Interest in REMIC III. REMIC III Regular
      Interest CE-2 will be entitled to 100% of the amounts distributed on REMIC
      II
      Regular Interest I-CE-2.

     

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

     

    “REMIC
      III Regular Interest M-1”:
      One of
      the separate non-certificated beneficial ownership interests in REMIC III issued
      hereunder and designated as a Regular Interest in REMIC III. REMIC III Regular
      Interest M-1 shall accrue interest at the related REMIC III Remittance Rate
      in
      effect from time to time, and shall be entitled to distributions of principal,
      subject to the terms and conditions hereof, in an aggregate amount equal to
      its
      initial Uncertificated Balance as set forth in the Preliminary Statement
      hereto.

     

    “REMIC
      III Regular Interest M-2”:
      One of
      the separate non-certificated beneficial ownership interests in REMIC III issued
      hereunder and designated as a Regular Interest in REMIC III. REMIC III Regular
      Interest M-2 shall accrue interest at the related REMIC III Remittance Rate
      in
      effect from time to time, and shall be entitled to distributions of principal,
      subject to the terms and conditions hereof, in an aggregate amount equal to
      its
      initial Uncertificated Balance as set forth in the Preliminary Statement
      hereto.

     

    “REMIC
      III Regular Interest M-3”:
      One of
      the separate non-certificated beneficial ownership interests in REMIC III issued
      hereunder and designated as a Regular Interest in REMIC III. REMIC III Regular
      Interest M-3 shall accrue interest at the related REMIC III Remittance Rate
      in
      effect from time to time, and shall be entitled to distributions of principal,
      subject to the terms and conditions hereof, in an aggregate amount equal to
      its
      initial Uncertificated Balance as set forth in the Preliminary Statement
      hereto.

     

    “REMIC
      III Regular Interest M-4”:
      One of
      the separate non-certificated beneficial ownership interests in REMIC III issued
      hereunder and designated as a Regular Interest in REMIC III. REMIC III Regular
      Interest M-4 shall accrue interest at the related REMIC III Remittance Rate
      in
      effect from time to time, and shall be entitled to distributions of principal,
      subject to the terms and conditions hereof, in an aggregate amount equal to
      its
      initial Uncertificated Balance as set forth in the Preliminary Statement
      hereto.

     

    
      
        
        

      

      
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    “REMIC
      III Regular Interest M-5”:
      One of
      the separate non-certificated beneficial ownership interests in REMIC III issued
      hereunder and designated as a Regular Interest in REMIC III. REMIC III Regular
      Interest M-5 shall accrue interest at the related REMIC III Remittance Rate
      in
      effect from time to time, and shall be entitled to distributions of principal,
      subject to the terms and conditions hereof, in an aggregate amount equal to
      its
      initial Uncertificated Balance as set forth in the Preliminary Statement
      hereto.

     

    “REMIC
      III Regular Interest M-6”:
      One of
      the separate non-certificated beneficial ownership interests in REMIC III issued
      hereunder and designated as a Regular Interest in REMIC III. REMIC III Regular
      Interest M-6 shall accrue interest at the related REMIC III Remittance Rate
      in
      effect from time to time, and shall be entitled to distributions of principal,
      subject to the terms and conditions hereof, in an aggregate amount equal to
      its
      initial Uncertificated Balance as set forth in the Preliminary Statement
      hereto.

     

    “REMIC
      III Regular Interest M-7”:
      One of
      the separate non-certificated beneficial ownership interests in REMIC III issued
      hereunder and designated as a Regular Interest in REMIC III. REMIC III Regular
      Interest M-7 shall accrue interest at the related REMIC III Remittance Rate
      in
      effect from time to time, and shall be entitled to distributions of principal,
      subject to the terms and conditions hereof, in an aggregate amount equal to
      its
      initial Uncertificated Balance as set forth in the Preliminary Statement
      hereto.

     

    “REMIC
      III Regular Interest M-8”:
      One of
      the separate non-certificated beneficial ownership interests in REMIC III issued
      hereunder and designated as a Regular Interest in REMIC III. REMIC III Regular
      Interest M-8 shall accrue interest at the related REMIC III Remittance Rate
      in
      effect from time to time, and shall be entitled to distributions of principal,
      subject to the terms and conditions hereof, in an aggregate amount equal to
      its
      initial Uncertificated Balance as set forth in the Preliminary Statement
      hereto.

     

    “REMIC
      III Regular Interest M-9”:
      One of
      the separate non-certificated beneficial ownership interests in REMIC III issued
      hereunder and designated as a Regular Interest in REMIC III. REMIC III Regular
      Interest M-9 shall accrue interest at the related REMIC III Remittance Rate
      in
      effect from time to time, and shall be entitled to distributions of principal,
      subject to the terms and conditions hereof, in an aggregate amount equal to
      its
      initial Uncertificated Balance as set forth in the Preliminary Statement
      hereto.

     

    “REMIC
      III Regular Interest P”:
      One of
      the separate non-certificated beneficial ownership interests in REMIC III issued
      hereunder and designated as a Regular Interest in REMIC III. REMIC III Regular
      Interest P shall accrue interest at the related REMIC III Remittance Rate in
      effect from time to time, and shall be entitled to distributions of principal,
      subject to the terms and conditions hereof, in an aggregate amount equal to
      its
      initial Uncertificated Balance as set forth in the Preliminary Statement
      hereto.

     

    
      
        
        

      

      
        64

        
          

        

      

      
        
        

      

    

     

    “REMIC
      III Regular Interest XX”:
      One of
      the separate non-certificated beneficial ownership interests in REMIC III issued
      hereunder and designated as a Regular Interest in REMIC III. REMIC III Regular
      Interest XX shall accrue interest at the related REMIC III Remittance Rate
      in
      effect from time to time, and shall be entitled to distributions of principal,
      subject to the terms and conditions hereof, in an aggregate amount equal to
      its
      initial Uncertificated Balance as set forth in the Preliminary Statement
      hereto.

     

    “REMIC
      III Regular Interest ZZ”:
      One of
      the separate non-certificated beneficial ownership interests in REMIC III issued
      hereunder and designated as a Regular Interest in REMIC III. REMIC III Regular
      Interest ZZ shall accrue interest at the related REMIC III Remittance Rate
      in
      effect from time to time, and shall be entitled to distributions of principal,
      subject to the terms and conditions hereof, in an aggregate amount equal to
      its
      initial Uncertificated Balance as set forth in the Preliminary Statement
      hereto.

     

    “REMIC
      III Regular Interest I-SUB”:
      One of
      the separate non-certificated beneficial ownership interests in REMIC III issued
      hereunder and designated as a Regular Interest in REMIC III. REMIC III Regular
      Interest I-SUB shall accrue interest at the related REMIC III Remittance Rate
      in
      effect from time to time, and shall be entitled to distributions of principal,
      subject to the terms and conditions hereof, in an aggregate amount equal to
      its
      initial Uncertificated Balance as set forth in the Preliminary Statement
      hereto.

     

    “REMIC
      III Regular Interest I-GRP”:
      One of
      the separate non-certificated beneficial ownership interests in REMIC III issued
      hereunder and designated as a Regular Interest in REMIC III. REMIC III Regular
      Interest I-GRP shall accrue interest at the related REMIC III Remittance Rate
      in
      effect from time to time, and shall be entitled to distributions of principal,
      subject to the terms and conditions hereof, in an aggregate amount equal to
      its
      initial Uncertificated Balance as set forth in the Preliminary Statement
      hereto.

     

    “REMIC
      III Regular Interest II-SUB”:
      One of
      the separate non-certificated beneficial ownership interests in REMIC III issued
      hereunder and designated as a Regular Interest in REMIC III. REMIC III Regular
      Interest II-SUB shall accrue interest at the related REMIC III Remittance Rate
      in effect from time to time, and shall be entitled to distributions of
      principal, subject to the terms and conditions hereof, in an aggregate amount
      equal to its initial Uncertificated Balance as set forth in the Preliminary
      Statement hereto.

     

    “REMIC
      III Regular Interest II-GRP”:
      One of
      the separate non-certificated beneficial ownership interests in REMIC III issued
      hereunder and designated as a Regular Interest in REMIC III. REMIC III Regular
      Interest II-GRP shall accrue interest at the related REMIC III Remittance Rate
      in effect from time to time, and shall be entitled to distributions of
      principal, subject to the terms and conditions hereof, in an aggregate amount
      equal to its initial Uncertificated Balance as set forth in the Preliminary
      Statement hereto.

     

    
      
        
        

      

      
        65

        
          

        

      

      
        
        

      

    

     

    “REMIC
      III Remittance Rate”:
      With
      respect to REMIC III Regular Interest AA, REMIC III Regular Interest A-1, REMIC
      III Regular Interest A-2A, REMIC III Regular Interest A-2B, REMIC III Regular
      Interest A-2C, REMIC III Regular Interest A-2D, REMIC III Regular Interest
      M-1,
      REMIC III Regular Interest M-2, REMIC III Regular Interest M-3, REMIC III
      Regular Interest M-4, REMIC III Regular Interest M-5, REMIC III Regular Interest
      M-6, REMIC III Regular Interest M-7, REMIC III Regular Interest M-8, REMIC
      III
      Regular Interest M-9, REMIC III Regular Interest ZZ, REMIC III Regular Interest
      P, REMIC III Regular Interest I-SUB, REMIC III Regular Interest II-SUB and
      REMIC
      III Regular Interest XX, a per annum rate (but not less than zero) equal to
      the
      weighted average of: (w) with respect to REMIC II Regular Interest I and REMIC
      II Regular Interest II, the REMIC II Remittance Rate for each such REMIC II
      Regular Interest for each such Distribution Date, (x) with respect to each
      REMIC
      II Regular Interest ending with the designation “B”, the weighted average of the
      REMIC II Remittance Rates for such REMIC II Regular Interests, weighted on
      the
      basis of the Uncertificated Balances of such REMIC II Regular Interests for
      each
      such Distribution Date and (y) with respect to REMIC II Regular Interests ending
      with the designation “A”, for each Distribution Date listed below, the weighted
      average of the rates listed below for each such REMIC II Regular Interest listed
      below, weighted on the basis of the Uncertificated Balances of each such REMIC
      II Regular Interest for each such Distribution Date:

    

    
      	
              Distribution
                Date

            	 	
              REMIC
                II Regular Interest

            	 	
              Rate

            
	
              1st
                through 6th

            	 	
              I-1-A
                through I-53-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	
              II-1-A
                through II-53-A

            	 	
              REMIC
                II Remittance Rate

            
	
              7

            	 	
              I-1-A
                through I-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              II-1-A
                through II-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	
              8

            	 	
              I-2-A
                through I-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              II-2-A
                through II-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate 

              REMIC
                II Remittance Rate

            
	 	 	
              I-1-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	
              II-1-A

            	 	
              REMIC
                II Remittance Rate

            
	
              9

            	 	
              I-3-A
                through I-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              II-3-A
                through II-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              I-1-A
                and I-2-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	
              II-1-A
                and II-2-A

            	 	
              REMIC
                II Remittance Rate

            
	
              10

            	 	
              I-4-A
                through I-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              II-4-A
                through II-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              I-1-A
                through I-3-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	
              II-1-A
                through II-3-A

            	 	
              REMIC
                II Remittance Rate

            
	
              11

            	 	
              I-5-A
                through I-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              II-5-A
                through II-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              I-1-A
                through I-4-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	
              II-1-A
                through II-4-A

            	 	
              REMIC
                II Remittance Rate

            
	
              12

            	 	
              I-6-A
                through I-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              II-6-A
                through II-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              I-1-A
                through I-5-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	
              II-1-A
                through II-5-A

            	 	
              REMIC
                II Remittance Rate

            
	
              13

            	 	
              I-7-A
                through I-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              II-7-A
                through II-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              I-1-A
                through I-6-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	
              II-1-A
                through II-6-A

            	 	
              REMIC
                II Remittance Rate

            
	
              14

            	 	
              I-8-A
                through I-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              II-8-A
                through II-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              I-1-A
                through I-7-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	
              II-1-A
                through II-7-A

            	 	
              REMIC
                II Remittance Rate

            

    

     

    
      
        
        

      

      
        66

        
          

        

      

      
        
        

      

    

     

    
      	
              Distribution
                Date

            	 	
              REMIC
                II Regular Interest

            	 	
              Rate

            
	
              15

            	 	
              I-9-A
                through I-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              II-9-A
                through II-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              I-1-A
                through I-8-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	
              II-1-A
                through II-8-A

            	 	
              REMIC
                II Remittance Rate

            
	
              16

            	 	
              I-10-A
                through I-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              II-10-A
                through II-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              I-1-A
                through I-9-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	
              II-1-A
                through II-9-A

            	 	
              REMIC
                II Remittance Rate

            
	
              17

            	 	
              I-11-A
                through I-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              II-11-A
                through II-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              I-1-A
                through I-10-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	
              II-1-A
                through II-10-A

            	 	
              REMIC
                II Remittance Rate

            
	
              18

            	 	
              I-12-A
                through I-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              II-12-A
                through II-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              I-1-A
                through I-11-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	
              II-1-A
                through II-11-A

            	 	
              REMIC
                II Remittance Rate

            
	
              19

            	 	
              I-13-A
                through I-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              II-13-A
                through II-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              I-1-A
                through I-12-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	
              II-1-A
                through II-12-A

            	 	
              REMIC
                II Remittance Rate

            
	
              20

            	 	
              I-14-A
                through I-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              II-14-A
                through II-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              I-1-A
                through I-13-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	
              II-1-A
                through II-13-A

            	 	
              REMIC
                II Remittance Rate

            
	
              21

            	 	
              I-15-A
                through I-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              II-15-A
                through II-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              I-1-A
                through I-14-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	
              II-1-A
                through II-14-A

            	 	
              REMIC
                II Remittance Rate

            
	
              22

            	 	
              I-16-A
                through I-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              II-16-A
                through II-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              I-1-A
                through I-15-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	
              II-1-A
                through II-15-A

            	 	
              REMIC
                II Remittance Rate

            
	
              23

            	 	
              I-17-A
                through I-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              II-17-A
                through II-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              I-1-A
                through I-16-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	
              II-1-A
                through II-16-A

            	 	
              REMIC
                II Remittance Rate

            
	
              24

            	 	
              I-18-A
                through I-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              II-18-A
                through II-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              I-1-A
                through I-17-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	
              II-1-A
                through II-17-A

            	 	
              REMIC
                II Remittance Rate

            

    

     

    
      
        
        

      

      
        67

        
          

        

      

      
        
        

      

    

     

    
      	
              Distribution
                Date

            	 	
              REMIC
                II Regular Interest

            	 	
              Rate

            
	
              25

            	 	
              I-19-A
                through I-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              II-19-A
                through II-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              I-1-A
                through I-18-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	
              II-1-A
                through II-18-A

            	 	
              REMIC
                II Remittance Rate

            
	
              26

            	 	
              I-20-A
                through I-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              II-20-A
                through II-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              I-1-A
                through I-19-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	
              II-1-A
                through II-19-A

            	 	
              REMIC
                II Remittance Rate

            
	
              27

            	 	
              I-21-A
                through I-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              II-21-A
                through II-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              I-1-A
                through I-20-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	
              II-1-A
                through II-20-A

            	 	
              REMIC
                II Remittance Rate

            
	
              28

            	 	
              I-22-A
                through I-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              II-22-A
                through II-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              I-1-A
                through I-21-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	
              II-1-A
                through II-21-A

            	 	
              REMIC
                II Remittance Rate

            
	
              29

            	 	
              I-23-A
                through I-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              II-23-A
                through II-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              I-1-A
                through I-22-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	
              II-1-A
                through II-22-A

            	 	
              REMIC
                II Remittance Rate

            
	
              30

            	 	
              I-24-A
                through I-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              II-24-A
                through II-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              I-1-A
                through I-23-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	
              II-1-A
                through II-23-A

            	 	
              REMIC
                II Remittance Rate

            
	
              31

            	 	
              I-25-A
                through I-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              II-25-A
                through II-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              I-1-A
                through I-24-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	
              II-1-A
                through II-24-A

            	 	
              REMIC
                II Remittance Rate

            
	
              32

            	 	
              I-26-A
                through I-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              II-26-A
                through II-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              I-1-A
                through I-25-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	
              II-1-A
                through II-25-A

            	 	
              REMIC
                II Remittance Rate

            
	
              33

            	 	
              I-27-A
                through I-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              II-27-A
                through II-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              I-1-A
                through I-26-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	
              II-1-A
                through II-26-A

            	 	
              REMIC
                II Remittance Rate

            
	
              34

            	 	
              I-28-A
                through I-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              II-28-A
                through II-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              I-1-A
                through I-27-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	
              II-1-A
                through II-27-A

            	 	
              REMIC
                II Remittance Rate

            
	
              35

            	 	
              I-29-A
                through I-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              II-29-A
                through II-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              I-1-A
                through I-28-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	
              II-1-A
                through II-28-A

            	 	
              REMIC
                II Remittance Rate

            

    

     

    
      
        
        

      

      
        68

        
          

        

      

      
        
        

      

    

     

    
      	
              Distribution
                Date

            	 	
              REMIC
                II Regular Interest

            	 	
              Rate

            
	
              36th-37th

            	 	
              I-30-A
                through I-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              II-30-A
                through II-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              I-1-A
                through I-29-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	
              II-1-A
                through II-29-A

            	 	
              REMIC
                II Remittance Rate

            
	
              38

            	 	
              I-31-A
                through I-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              II-31-A
                through II-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              I-1-A
                through I-30-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	
              II-1-A
                through II-30-A

            	 	
              REMIC
                II Remittance Rate

            
	
              39

            	 	
              I-32-A
                through I-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              II-32-A
                through II-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              I-1-A
                through I-31-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	
              II-1-A
                through II-31-A

            	 	
              REMIC
                II Remittance Rate

            
	
              40

            	 	
              I-33-A
                through I-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              II-33-A
                through II-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              I-1-A
                through I-32-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	
              II-1-A
                through II-32-A

            	 	
              REMIC
                II Remittance Rate

            
	
              41

            	 	
              I-34-A
                through I-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              II-34-A
                through II-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              I-1-A
                through I-33-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	
              II-1-A
                through II-33-A

            	 	
              REMIC
                II Remittance Rate

            
	
              42

            	 	
              I-35-A
                through I-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              II-35-A
                through II-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              I-1-A
                through I-34-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	
              II-1-A
                through II-34-A

            	 	
              REMIC
                II Remittance Rate

            
	
              43

            	 	
              I-36-A
                through I-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              II-36-A
                through II-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              I-1-A
                through I-35-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	
              II-1-A
                through II-35-A

            	 	
              REMIC
                II Remittance Rate

            
	
              44

            	 	
              I-37-A
                through I-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              II-37-A
                through II-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              I-1-A
                through I-36-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	
              II-1-A
                through II-36-A

            	 	
              REMIC
                II Remittance Rate

            
	
              45

            	 	
              I-38-A
                through I-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              II-38-A
                through II-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              I-1-A
                through I-37-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	
              II-1-A
                through II-37-A

            	 	
              REMIC
                II Remittance Rate

            
	
              46

            	 	
              I-39-A
                through I-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              II-39-A
                through II-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              I-1-A
                through I-38-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	
              II-1-A
                through II-38-A

            	 	
              REMIC
                II Remittance Rate

            
	
              47

            	 	
              I-40-A
                through I-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              II-40-A
                through II-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              I-1-A
                through I-39-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	
              II-1-A
                through II-39-A

            	 	
              REMIC
                II Remittance Rate

            

    

     

    
      
        
        

      

      
        69

        
          

        

      

      
        
        

      

    

     

    
      	
              Distribution
                Date

            	 	
              REMIC
                II Regular Interest

            	 	
              Rate

            
	
              48

            	 	
              I-41-A
                through I-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              II-41-A
                through II-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              I-1-A
                through I-40-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	
              II-1-A
                through II-40-A

            	 	
              REMIC
                II Remittance Rate

            
	
              49

            	 	
              I-42-A
                through I-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              II-42-A
                through II-41-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              I-1-A
                through I-41-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	
              II-1-A
                through II-21-A

            	 	
              REMIC
                II Remittance Rate

            
	
              50

            	 	
              I-43-A
                through I-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              II-43-A
                through II-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              I-1-A
                through I-42-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	
              II-1-A
                through II-42-A

            	 	
              REMIC
                II Remittance Rate

            
	
              51

            	 	
              I-44-A
                through I-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              II-44-A
                through II-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              I-1-A
                through I-43-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	
              II-1-A
                through II-43-A

            	 	
              REMIC
                II Remittance Rate

            
	
              52

            	 	
              I-45-A
                through I-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              II-45-A
                through II-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              I-1-A
                through I-44-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	
              II-1-A
                through II-44-A

            	 	
              REMIC
                II Remittance Rate

            
	
              51

            	 	
              I-46-A
                through I-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              II-46-A
                through II-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              I-1-A
                through I-45-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	
              II-1-A
                through II-45-A

            	 	
              REMIC
                II Remittance Rate

            
	
              51

            	 	
              I-47-A
                through I-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              II-47-A
                through II-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              I-1-A
                through I-46-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	
              II-1-A
                through II-46-A

            	 	
              REMIC
                II Remittance Rate

            
	
              55

            	 	
              I-48-A
                through I-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              II-48-A
                through II-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              I-1-A
                through I-47-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	
              II-1-A
                through II-47-A

            	 	
              REMIC
                II Remittance Rate

            
	
              56

            	 	
              I-49-A
                through I-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              II-49-A
                through II-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              I-1-A
                through I-48-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	
              II-1-A
                through II-48-A

            	 	
              REMIC
                II Remittance Rate

            
	
              57

            	 	
              I-50-A
                through I-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              II-50-A
                through II-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              I-1-A
                through I-49-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	
              II-1-A
                through II-49-A

            	 	
              REMIC
                II Remittance Rate

            
	
              58

            	 	
              I-51-A
                through I-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              II-51-A
                through II-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              I-1-A
                through I-50-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	
              II-1-A
                through II-50-A

            	 	
              REMIC
                II Remittance Rate

            

    

     

    
      
        
        

      

      
        70

        
          

        

      

      
        
        

      

    

     

    
      	
              Distribution
                Date

            	 	
              REMIC
                II Regular Interest

            	 	
              Rate

            
	
              59

            	 	
              I-52-A
                and I-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              II-52-A
                and II-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              I-1-A
                through I-51-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	
              II-1-A
                through II-51-A

            	 	
              REMIC
                II Remittance Rate

            
	
              60

            	 	
              I-53-A
                

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              II-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              I-1-A
                through I-52-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	
              II-1-A
                through II-52-A

            	 	
              REMIC
                II Remittance Rate

            
	
              Thereafter

            	 	
              I-1-A
                through I-53-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	
              II-1-A
                through II-53-A

            	 	
              REMIC
                II Remittance Rate

            

    

     

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

     

    
      	
              Distribution
                Date

            	 	
              REMIC
                II Regular Interest

            	 	
              Rate

            
	
              1st
                through 6th 

            	 	
              I-1-A
                through I-53-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	 	 	 
	
              7

            	 	
              I-1-A
                through I-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	 	 	 
	
              8

            	 	
              I-2-A
                through I-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              I-1-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	 	 	 
	
              9

            	 	
              I-3-A
                through I-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              I-1-A
                and I-2-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	 	 	 
	
              10

            	 	
              I-4-A
                through I-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              I-1-A
                through I-3-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	 	 	 
	
              11

            	 	
              I-5-A
                through I-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              I-1-A
                through I-4-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	 	 	 
	
              12

            	 	
              I-6-A
                through I-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              I-1-A
                through I-5-A

            	 	
              REMIC
                II Remittance Rate

            

    

     

    
      
        
        

      

      
        71

        
          

        

      

      
        
        

      

    

     

    
      	
              Distribution
                Date

            	 	
              REMIC
                II Regular Interest

            	 	
              Rate

            
	
              13

            	 	
              I-7-A
                through I-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              I-1-A
                through I-6-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	 	 	 
	
              14

            	 	
              I-8-A
                through I-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              I-1-A
                through I-7-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	 	 	 
	
              15

            	 	
              I-9-A
                through I-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              I-1-A
                through I-8-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	 	 	 
	
              16

            	 	
              I-10-A
                through I-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              I-1-A
                through I-9-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	 	 	 
	
              17

            	 	
              I-11-A
                through I-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              I-1-A
                through I-10-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	 	 	 
	
              18

            	 	
              I-12-A
                through I-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              I-1-A
                through I-11-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	 	 	 
	
              19

            	 	
              I-13-A
                through I-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              I-1-A
                through I-12-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	 	 	 
	
              20

            	 	
              I-14-A
                through I-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              I-1-A
                through I-13-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	 	 	 
	
              21

            	 	
              I-15-A
                through I-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              I-1-A
                through I-14-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	 	 	 
	
              22

            	 	
              I-16-A
                through I-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              I-1-A
                through I-15-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	 	 	 
	
              23

            	 	
              I-17-A
                through I-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              I-1-A
                through I-16-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	 	 	 
	
              24

            	 	
              I-18-A
                through I-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              I-1-A
                through I-17-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	 	 	 
	
              25

            	 	
              I-19-A
                through I-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              I-1-A
                through I-18-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	 	 	 
	
              26

            	 	
              I-20-A
                through I-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              I-1-A
                through I-19-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	 	 	 
	
              27

            	 	
              I-21-A
                through I-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              I-1-A
                through I-20-A

            	 	
              REMIC
                II Remittance Rate

            

    

     

    
      
        
        

      

      
        72

        
          

        

      

      
        
        

      

    

     

    
      	
              Distribution
                Date

            	 	
              REMIC
                II Regular Interest

            	 	
              Rate

            
	
              28

            	 	
              I-22-A
                through I-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              I-1-A
                through I-21-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	 	 	 
	
              29

            	 	
              I-23-A
                through I-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              I-1-A
                through I-22-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	 	 	 
	
              30

            	 	
              I-24-A
                through I-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              I-1-A
                through I-23-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	 	 	 
	
              31

            	 	
              I-25-A
                through I-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              I-1-A
                through I-24-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	 	 	 
	
              32

            	 	
              I-26-A
                through I-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              I-1-A
                through I-25-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	 	 	 
	
              33

            	 	
              I-27-A
                through I-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              I-1-A
                through I-26-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	 	 	 
	
              34

            	 	
              I-28-A
                through I-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              I-1-A
                through I-27-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	 	 	 
	
              35

            	 	
              I-29-A
                through I-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              I-1-A
                through I-28-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	 	 	 
	
              36th-37th

            	 	
              I-30-A
                through I-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              I-1-A
                through I-29-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	 	 	 
	
              38

            	 	
              I-31-A
                through I-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              I-1-A
                through I-30-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	 	 	 
	
              39

            	 	
              I-32-A
                through I-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              I-1-A
                through I-31-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	 	 	 
	
              40

            	 	
              I-33-A
                through I-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              I-1-A
                through I-32-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	 	 	 
	
              41

            	 	
              I-34-A
                through I-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              I-1-A
                through I-33-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	 	 	 
	
              42

            	 	
              I-35-A
                through I-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              I-1-A
                through I-34-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	 	 	 
	
              43

            	 	
              I-36-A
                through I-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              I-1-A
                through I-35-A

            	 	
              REMIC
                II Remittance Rate

            

    

     

    
      
        
        

      

      
        73

        
          

        

      

      
        
        

      

    

     

    
      	
              Distribution
                Date

            	 	
              REMIC
                II Regular Interest

            	 	
              Rate

            
	
              44

            	 	
              I-37-A
                through I-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              I-1-A
                through I-36-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	 	 	 
	
              45

            	 	
              I-38-A
                through I-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              I-1-A
                through I-37-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	 	 	 
	
              46

            	 	
              I-39-A
                through I-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of

               REMIC
                II Remittance Rate

            
	 	 	
              I-1-A
                through I-38-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	 	 	 
	
              47

            	 	
              I-40-A
                through I-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              I-1-A
                through I-39-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	 	 	 
	
              48

            	 	
              I-41-A
                through I-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              I-1-A
                through I-40-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	 	 	 
	
              59

            	 	
              I-42-A
                through I-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              I-1-A
                through I-41-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	 	 	 
	
              50

            	 	
              I-43-A
                through I-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              I-1-A
                through I-42-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	 	 	 
	
              51

            	 	
              I-44-A
                through I-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              I-1-A
                through I-43-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	 	 	 
	
              52

            	 	
              I-45-A
                through I-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              I-1-A
                through I-44-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	 	 	 
	
              51

            	 	
              I-46-A
                through I-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              I-1-A
                through I-45-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	 	 	 
	
              51

            	 	
              I-47-A
                through I-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              I-1-A
                through I-46-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	 	 	 
	
              55

            	 	
              I-48-A
                through I-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              I-1-A
                through I-47-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	 	 	 
	
              56

            	 	
              I-49-A
                through I-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              I-1-A
                through I-48-A

            	 	
              REMIC
                II Remittance Rate

            
	
              57

            	 	 	 	 
	 	 	
              I-50-A
                through I-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	
              58

            	 	
              I-1-A
                through I-49-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	
              I-51-A
                through I-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	
              59

            	 	
              I-1-A
                through I-50-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	
              I-52-A
                through I-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            

    

     

    
      
        
        

      

      
        74

        
          

        

      

      
        
        

      

    

     

    
      	
              Distribution
                Date

            	 	
              REMIC
                II Regular Interest

            	 	
              Rate

            
	
              60

            	 	
              I-1-A
                through I-51-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	
              I-53-A
                

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              I-1-A
                through I-52-A

            	 	
              REMIC
                II Remittance Rate

            
	
              thereafter

            	 	
              I-1-A
                through I-53-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	 	 	 

    

    

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

     

    
      	
              Distribution
                Date

            	 	
              REMIC
                II Regular Interest

            	 	
              Rate

            
	
              1st
                through 6th 

            	 	
              II-1-A
                through II-53-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	 	 	 
	
              7

            	 	
              II-1-A
                through II-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	 	 	 
	
              8

            	 	
              II-2-A
                through II-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              II-1-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	 	 	 
	
              9

            	 	
              II-3-A
                through II-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              II-1-A
                and II-2-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	 	 	 
	
              10

            	 	
              II-4-A
                through II-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              II-1-A
                through II-3-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	 	 	 
	
              11

            	 	
              II-5-A
                through II-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              II-1-A
                through II-4-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	 	 	 
	
              12

            	 	
              II-6-A
                through II-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              II-1-A
                through II-5-A

            	 	
              REMIC
                II Remittance Rate

            

    

    
      
        	 	 	 	 	 
	
                13

              	 	
                II-7-A
                  through II-53-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of 

                REMIC
                  II Remittance Rate

              
	 	 	
                II-1-A
                  through II-6-A

              	 	
                REMIC
                  II Remittance Rate

              
	 	 	 	 	 
	
                14

              	 	
                II-8-A
                  through II-53-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of 

                REMIC
                  II Remittance Rate

              
	 	 	
                II-1-A
                  through II-7-A

              	 	
                REMIC
                  II Remittance Rate

              
	 	 	 	 	 
	
                15

              	 	
                II-9-A
                  through II-53-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of 

                REMIC
                  II Remittance Rate

              
	 	 	
                II-1-A
                  through II-8-A

              	 	
                REMIC
                  II Remittance Rate

              

      

       

    

    
      
        
        

      

      
        75

        
          

        

      

      
        
        

      

    

     

    
      	
              Distribution
                Date

            	 	
              REMIC
                II Regular Interest

            	 	
              Rate

            
	
              16

            	 	
              II-10-A
                through II-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              II-1-A
                through II-9-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	 	 	 
	
              17

            	 	
              II-11-A
                through II-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              II-1-A
                through II-10-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	 	 	 
	
              18

            	 	
              II-12-A
                through II-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              II-1-A
                through II-11-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	 	 	 
	
              19

            	 	
              II-13-A
                through II-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              II-1-A
                through II-12-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	 	 	 
	
              20

            	 	
              II-14-A
                through II-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              II-1-A
                through II-13-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	 	 	 
	
              21

            	 	
              II-15-A
                through II-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              II-1-A
                through II-14-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	 	 	 
	
              22

            	 	
              II-16-A
                through II-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              II-1-A
                through II-15-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	 	 	 
	
              23

            	 	
              II-17-A
                through II-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              II-1-A
                through II-16-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	 	 	 
	
              24

            	 	
              II-18-A
                through II-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              II-1-A
                through II-17-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	 	 	 
	
              25

            	 	
              II-19-A
                through II-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              II-1-A
                through II-18-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	 	 	 
	
              26

            	 	
              II-20-A
                through II-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              II-1-A
                through II-19-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	 	 	 
	
              27

            	 	
              II-21-A
                through II-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              II-1-A
                through II-20-A

            	 	
              REMIC
                II Remittance Rate

            

    

    
      
        	 	 	 	 	 
	
                28

              	 	
                II-22-A
                  through II-53-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of 

                REMIC
                  II Remittance Rate

              
	 	 	
                II-1-A
                  through II-21-A

              	 	
                REMIC
                  II Remittance Rate

              
	 	 	 	 	 
	
                29

              	 	
                II-23-A
                  through II-53-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of 

                REMIC
                  II Remittance Rate

              
	 	 	
                II-1-A
                  through II-22-A

              	 	
                REMIC
                  II Remittance Rate

              
	 	 	 	 	 
	
                30

              	 	
                II-24-A
                  through II-53-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of 

                REMIC
                  II Remittance Rate

              
	 	 	
                II-1-A
                  through II-23-A

              	 	
                REMIC
                  II Remittance Rate

              

      

       

    

    
      
        
        

      

      
        76

        
          

        

      

      
        
        

      

    

     

    
      	
              Distribution
                Date

            	 	
              REMIC
                II Regular Interest

            	 	
              Rate

            
	
              31

            	 	
              II-25-A
                through II-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              II-1-A
                through II-24-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	 	 	 
	
              32

            	 	
              II-26-A
                through II-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              II-1-A
                through II-25-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	 	 	 
	
              33

            	 	
              II-27-A
                through II-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              II-1-A
                through II-26-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	 	 	 
	
              34

            	 	
              II-28-A
                through II-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              II-1-A
                through II-27-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	 	 	 
	
              35

            	 	
              II-29-A
                through II-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              II-1-A
                through II-28-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	 	 	 
	
              36th-37th

            	 	
              II-30-A
                through II-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              II-1-A
                through II-29-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	 	 	 
	
              38

            	 	
              II-31-A
                through II-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              II-1-A
                through II-30-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	 	 	 
	
              39

            	 	
              II-32-A
                through II-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              II-1-A
                through II-31-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	 	 	 
	
              40

            	 	
              II-33-A
                through II-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              II-1-A
                through II-32-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	 	 	 
	
              41

            	 	
              II-34-A
                through II-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              II-1-A
                through II-33-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	 	 	 
	
              42

            	 	
              II-35-A
                through II-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              II-1-A
                through II-34-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	 	 	 
	
              43

            	 	
              II-36-A
                through II-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              II-1-A
                through II-35-A

            	 	
              REMIC
                II Remittance Rate

            

    

    
      
        	 	 	 	 	 
	
                44

              	 	
                II-37-A
                  through II-53-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of 

                REMIC
                  II Remittance Rate

              
	 	 	
                II-1-A
                  through II-36-A

              	 	
                REMIC
                  II Remittance Rate

              
	 	 	 	 	 
	
                45

              	 	
                II-38-A
                  through II-53-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of 

                REMIC
                  II Remittance Rate

              
	 	 	
                II-1-A
                  through II-37-A

              	 	
                REMIC
                  II Remittance Rate

              
	 	 	 	 	 
	
                46

              	 	
                II-39-A
                  through II-53-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of 

                REMIC
                  II Remittance Rate

              
	 	 	
                II-1-A
                  through II-38-A

              	 	
                REMIC
                  II Remittance Rate

              

      

       

    

    
      
        
        

      

      
        77

        
          

        

      

      
        
        

      

    

     

    
      	
              Distribution
                Date

            	 	
              REMIC
                II Regular Interest

            	 	
              Rate

            
	
              47

            	 	
              II-40-A
                through II-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              II-1-A
                through II-39-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	 	 	 
	
              48

            	 	
              II-41-A
                through II-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              II-1-A
                through II-40-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	 	 	 
	
              59

            	 	
              II-42-A
                through II-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              II-1-A
                through II-41-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	 	 	 
	
              50

            	 	
              II-43-A
                through II-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              II-1-A
                through II-42-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	 	 	 
	
              51

            	 	
              II-44-A
                through II-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              II-1-A
                through II-43-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	 	 	 
	
              52

            	 	
              II-45-A
                through II-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              II-1-A
                through II-44-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	 	 	 
	
              51

            	 	
              II-46-A
                through II-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              II-1-A
                through II-45-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	 	 	 
	
              51

            	 	
              II-47-A
                through II-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              II-1-A
                through II-46-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	 	 	 
	
              55

            	 	
              II-48-A
                through II-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              II-1-A
                through II-47-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	 	 	 
	
              56

            	 	
              II-49-A
                through II-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	
              II-1-A
                through II-48-A

            	 	
              REMIC
                II Remittance Rate

            
	
              57

            	 	 	 	 
	 	 	
              II-50-A
                through II-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            
	 	 	 	 	 
	
              58

            	 	
              II-1-A
                through II-49-A

            	 	
              REMIC
                II Remittance Rate

            
	 	 	
              II-51-A
                through II-53-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of 

              REMIC
                II Remittance Rate

            

    

    
      
        	
                59

              	 	
                II-1-A
                  through II-50-A

              	 	
                REMIC
                  II Remittance Rate

              
	 	 	
                II-52-A
                  through II-53-A

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of 

                REMIC
                  II Remittance Rate

              
	
                60

              	 	
                II-1-A
                  through II-51-A

              	 	
                REMIC
                  II Remittance Rate

              
	 	 	
                II-53-A
                  

              	 	
                2
                  multiplied by Swap LIBOR, subject to a maximum rate of 

                REMIC
                  II Remittance Rate

              
	 	 	
                II-1-A
                  through II-52-A

              	 	
                REMIC
                  II Remittance Rate

              
	
                thereafter

              	 	
                II-1-A
                  through II-53-A

              	 	
                REMIC
                  II Remittance Rate

              

      

    

     

    With
      respect to REMIC III Regular Interest IO, and (i) the 1st Distribution Date
      through the 6th Distribution Date, the excess of (x) the weighted average of
      the
      REMIC II Remittance Rates for REMIC II Regular Interests including the
      designation “A”, over (y) the weighted average of the REMIC II Remittance Rates
      for REMIC II Regular Interests including the designation “A”, (ii) the 7th
      Distribution Date through the 60th
      Distribution Date, the excess of (x) the weighted average of the REMIC II
      Remittance Rates for REMIC II Regular Interests including the designation “A”,
      over (y) 2 multiplied by Swap LIBOR and (iii) thereafter, 0.00%. With respect
      to
      REMIC III Regular Interest CE-2, an amount equal to 100% of the amounts
      distributed on REMIC II Regular Interest I-CE-2.

     

    
      
        
        

      

      
        78

        
          

        

      

      
        
        

      

    

     

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

     

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

     

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

     

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

     

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

     

    “REMIC
      IV Certificateholder”:
      The
      Holder of any REMIC IV Certificate.

     

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

     

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

     

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

     

    “Remittance
      Report”:
      A
      report by the Servicers pursuant to Section 5.03(a) of this Agreement or
      pursuant to the Servicing Agreement.

     

    “Rents
      from Real Property”:
      With
      respect to any REO Property, gross income of the character described in Section
      856(d) of the Code as being included in the term “rents from real
      property.”

     

    
      
        
        

      

      
        79

        
          

        

      

      
        
        

      

    

     

    “REO
      Account”:
      The
      account or accounts maintained, or caused to be maintained, by each Servicer
      in
      respect of an REO Property pursuant to Section 3.22 of this Agreement or
      pursuant to the Servicing Agreement.

     

    “REO
      Disposition”:
      The
      sale or other disposition of an REO Property on behalf of REMIC I.

     

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

     

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

     

    “REO
      Property”:
      A
      Mortgaged Property acquired by the related Servicer or its nominee on behalf
      of
      REMIC I through foreclosure or deed-in-lieu of foreclosure, as described in
      Section 3.22 of this Agreement or pursuant to the Servicing
      Agreement.

     

    “Reportable
      Event”:
      Has
      the meaning set forth in Section 5.06(b) of this Agreement.

     

    “Required
      Overcollateralization Amount”:
      With
      respect to any Distribution Date (i) prior to the Stepdown Date, the product
      of
      (A) 5.35% and (B) the aggregate principal balance of the Mortgage Loans as
      of
      the Cut-off Date (ii) on or after the Stepdown Date provided a Trigger Event
      is
      not in effect, the greater of (x) 10.70% of the aggregate Stated Principal
      Balance of the Mortgage Loans (after giving effect to principal payments to
      be
      distributed on such Distribution Date) and (y) an amount equal to the product
      of
      (A) 0.50% and (B) the aggregate principal balance of the Mortgage Loans as
      of
      the Cut-off Date, and (iii) on or after the Stepdown Date and a Trigger Event
      is
      in effect, the Required Overcollateralization Amount for the immediately
      preceding Distribution Date. Notwithstanding the foregoing, on and after any
      Distribution Date following the reduction of the aggregate Certificate Principal
      Balance of the Class A Certificates and Mezzanine Certificates to zero, the
      Required Overcollateralization Amount shall be zero.

     

    
      
        
        

      

      
        80

        
          

        

      

      
        
        

      

    

     

    “Reserve
      Fund”:
      A fund
      created pursuant to Section 3.25 which shall be an asset of the Trust Fund
      but
      which shall not be an asset of any Trust REMIC.

     

    “Reserve
      Interest Rate”:
      With
      respect to any Interest Determination Date, the rate per annum that the
      Securities Administrator determines to be either (i) the arithmetic mean
      (rounded upwards if necessary to the nearest whole multiple of 1/16%) of the
      one-month U.S. dollar lending rates which New York City banks selected by the
      Securities Administrator, after consultation with the Depositor, are quoting
      on
      the relevant Interest Determination Date to the principal London offices of
      leading banks in the London interbank market or (ii) in the event that the
      Securities Administrator can determine no such arithmetic mean, the lowest
      one-month U.S. dollar lending rate which New York City banks selected by the
      Securities Administrator are quoting on such Interest Determination Date to
      leading European banks.

     

    “Residential
      Dwelling”:
      Any
      one of the following: (i) a attached, detached or semi-detached one to
      four-family dwelling, (ii) a one-family dwelling unit in a Fannie Mae eligible
      condominium project or (iii) a detached one-family dwelling in a planned unit
      development, none of which is a co-operative or mobile home.

     

    “Residual
      Certificate”:
      Any
      one of the Class R Certificates.

     

    “Residual
      Interest”:
      The
      sole class of “residual interests” in a REMIC within the meaning of Section
      860G(a)(2) of the Code.

     

    “Responsible
      Officer”:
      When
      used with respect to the Trustee, any officer of the Trustee having direct
      responsibility for the administration of this Agreement and, with respect to
      a
      particular matter, to whom such matter is referred because of such officer’s
      knowledge of and familiarity with the particular subject.

     

    “Rule
      144A”:
      Rule
      144A under the Securities Act.

     

    “S&P”:
      Standard & Poor’s, a division of the McGraw-Hill Companies,
      Inc.

     

    “Sarbanes-Oxley
      Act”:
      Means
      the Sarbanes-Oxley Act of 2002 and the rules and regulations of the Commission
      promulgated thereunder (including any interpretations thereof by the
      Commission’s staff).

     

    “Sarbanes-Oxley
      Certification”:
      A
      written certification signed by an officer of the Master Servicer that complies
      with (i) the Sarbanes-Oxley Act of 2002, as amended from time to time, and
      (ii)
      Exchange Act Rules 13a-14(d) and 15d-14(d), as in effect from time to time;
      provided that if, after the Closing Date (a) the Sarbanes-Oxley Act of 2002
      is
      amended, (b) the Rules referred to in clause (ii) are modified or superseded
      by
      any subsequent statement, rule or regulation of the Commission or any statement
      of a division thereof, or (c) any future releases, rules and regulations are
      published by the Commission from time to time pursuant to the Sarbanes-Oxley
      Act
      of 2002, which in any such case affects the form or substance of the required
      certification and results in the required certification being, in the reasonable
      judgment of the Master Servicer, materially more onerous that then form of
      the
      required certification as of the Closing Date, the Sarbanes-Oxley Certification
      shall be as agreed to by the Master Servicer, the Depositor and the Sponsor
      following a negotiation in good faith to determine how to comply with any such
      new requirements.

     

    
      
        
        

      

      
        81

        
          

        

      

      
        
        

      

    

     

    “Scheduled
      Principal Balance”:
      With
      respect to any Mortgage Loan: (a) as of the Cut-off Date, the outstanding
      principal balance of such Mortgage Loan as of such date, net of the principal
      portion of all unpaid Monthly Payments, if any, due on or before such date;
      (b)
      as of any Due Date subsequent to the Cut-off Date up to and including the Due
      Date in the calendar month in which a Liquidation Event occurs with respect
      to
      such Mortgage Loan, the Scheduled Principal Balance of such Mortgage Loan as
      of
      the Cut-off Date, minus the sum of (i) the principal portion of each Monthly
      Payment due on or before such Due Date but subsequent to the Cut-off Date,
      whether or not received, (ii) all Principal Prepayments received before such
      Due
      Date but after the Cut-off Date, (iii) the principal portion of all Liquidation
      Proceeds and Insurance Proceeds received before such Due Date but after the
      Cut-off Date, net of any portion thereof that represents principal due (without
      regard to any acceleration of payments under the related Mortgage and Mortgage
      Note) on a Due Date occurring on or before the date on which such proceeds
      were
      received and (iv) any Realized Loss incurred with respect thereto as a result
      of
      a Deficient Valuation occurring before such Due Date, but only to the extent
      such Realized Loss represents a reduction in the portion of principal of such
      Mortgage Loan not yet due (without regard to any acceleration of payments under
      the related Mortgage and Mortgage Note) as of the date of such Deficient
      Valuation; and (c) as of any Due Date subsequent to the occurrence of a
      Liquidation Event with respect to such Mortgage Loan, zero. With respect to
      any
      REO Property: (a) as of any Due Date subsequent to the date of its acquisition
      on behalf of the Trust Fund up to and including the Due Date in the calendar
      month in which a Liquidation Event occurs with respect to such REO Property,
      an
      amount (not less than zero) equal to the Scheduled Principal Balance of the
      related Mortgage Loan as of the Due Date in the calendar month in which such
      REO
      Property was acquired, minus the aggregate amount of REO Principal Amortization,
      if any, in respect of REO Property for all previously ended calendar months;
      and
      (b) as of any Due Date subsequent to the occurrence of a Liquidation Event
      with
      respect to such REO Property, zero.

     

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

     

    “Securities
      Administrator”:
      As of
      the Closing Date, Wells Fargo Bank, National Association and thereafter, its
      respective successors in interest that meet the qualifications of this
      Agreement. The Securities Administrator and the Master Servicer shall at all
      times be the same Person or Affiliates.

     

    “Senior
      Interest Distribution Amount”:
      With
      respect to any Distribution Date, an amount equal to the sum of (i) the Interest
      Distribution Amount for such Distribution Date for the Class A Certificates
      and
      (ii) the Interest Carry Forward Amount, if any, for such Distribution Date
      for
      the Class A Certificates.

     

    “Servicer”:
      Ocwen,
      GMAC or Countrywide, as applicable, or any successor thereto appointed hereunder
      in connection with the servicing and administration of the related Mortgage
      Loans.

     

    
      
        
        

      

      
        82

        
          

        

      

      
        
        

      

    

     

    “Servicer
      Event of Default”:
      One or
      more of the events described in Section 8.01(a).

     

    “Servicer
      Remittance Date”:
      With
      respect to any Distribution Date and the GMAC Mortgage Loans, by 12:00 p.m.
      New
      York time on the 18th day of the month in which such Distribution Date occurs;
      provided that if such 18th day of a given month is not a Business Day, the
      Servicer Remittance Date for such month shall be the Business Day immediately
      preceding such 18th day. With respect to any Distribution Date and the Ocwen
      Mortgage Loans, by 12:00 p.m. New York time on the 22nd day of each month in
      which such Distribution Date occurs; provided that if such 22nd day of a given
      month is not a Business Day, the Servicer Remittance Date for such month shall
      be the Business Day immediately preceding such 22nd day. With respect to any
      Distribution Date and the Countrywide Mortgage Loans, the 22nd day of each
      month
      in which such Distribution Date occurs; provided that if the 22nd day of a
      given
      month is not a business day, the Servicer Remittance Date for such month shall
      be the business day immediately preceding such 22nd day; provided, further,
      that
      if the Servicer Remittance Date falls on a Friday, the Servicer Remittance
      Date
      shall be the business day immediately preceding such Friday.

     

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

     

    “Service(s)(ing)”:
      Means,
      in accordance with Regulation AB, the act of servicing and administering the
      Mortgage Loans or any other assets of the Trust by an entity that meets the
      definition of “servicer’ set forth in Item 1101 of Regulation AB and is subject
      to the disclosure requirements set forth in Item 1108 of Regulation AB. For
      clarification purposes, any uncapitalized occurrence of this term shall have
      the
      meaning commonly understood by participants in the residential mortgage-backed
      securitization market.

     

    “Servicing
      Advances”:
      The
      customary and reasonable “out-of-pocket” costs and expenses incurred prior to or
      on or after the Cut-off Date (the amounts incurred prior to the Cut-off Date
      shall be identified on the Servicing Advance Schedule by (a) each Servicer
      with
      respect to any Mortgage Loans serviced by such Servicer that were transferred
      to
      the related Servicer prior to the Cut-off Date and/or (b) the Depositor with
      respect to any Mortgage Loans that were transferred to the Servicer after the
      Cut-off Date, as applicable) by the related Servicer in connection with a
      default, delinquency or other unanticipated event by the Servicer in the
      performance of its servicing obligations, including, but not limited to, the
      cost of (i) the preservation, restoration and protection of a Mortgaged
      Property, (ii) any enforcement or judicial proceedings, including but not
      limited to foreclosures, in respect of a particular Mortgage Loan, including
      any
      expenses incurred in relation to any such proceedings that result from the
      Mortgage Loan being registered on the MERS® System, (iii) the management
      (including reasonable fees in connection therewith) and liquidation of any
      REO
      Property, (iv) the performance of its obligations under Section 3.01,
      Section 3.07, Section 3.11, Section 3.13 and Section 3.22 of
      this Agreement or under the corresponding provisions of the Servicing Agreement;
      (v) refunding to any Mortgagor the portion of any prepaid origination fees
      or
      finance charges that are subject to reimbursement upon a principal prepayment
      of
      the related Mortgage Loan to the extent such refund is required by applicable
      law; and (vi) obtaining any legal documentation required to be included in
      the
      Mortgage File and/or correcting any outstanding title issues (i.e., any lien
      or
      encumbrance on the Mortgaged Property that prevents the effective enforcement
      of
      the intended lien position) reasonably necessary for the related Servicer to
      perform its obligations under this Agreement or under the Servicing Agreement.
      Servicing Advances also include any reasonable “out-of-pocket” cost and expenses
      (including legal fees) incurred by the Servicer in connection with executing
      and
      recording instruments of satisfaction, deeds of reconveyance or Assignments
      to
      the extent not recovered from the Mortgagor or otherwise payable under this
      Agreement. The Servicers shall not be required to make any Nonrecoverable
      Servicing Advances.

     

    
      
        
        

      

      
        83

        
          

        

      

      
        
        

      

    

     

    “Servicing
      Advance Schedule”:
      With
      respect to any Servicing Advances incurred prior to the Cut-off Date, the
      schedule or schedules provided by (a) the related Servicer with respect to
      any
      Mortgage Loans that were transferred to the related Servicer prior to the
      Cut-off Date and/or (b) the Depositor with respect to any Mortgage Loans that
      were transferred to the Servicer after the Cut-off Date, as applicable, to
      the
      Master Servicer and, if such schedule is provided by the Depositor, to the
      related Servicer, on the date on which such Servicer seeks reimbursement for
      a
      Servicing Advance made by the related Servicer, which schedule or schedules
      shall contain the information set forth on Schedule 6.

     

    “Servicing
      Agreement”:
      The
      Flow Servicing Agreement dated as of June 30, 2006, by and between the Sponsor
      and Countrywide, as modified by the Assignment Agreement.

     

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

     

    “Servicing
      Fee”:
      With
      respect to each Mortgage Loan and for any calendar month, an amount equal to
      one-twelfth of the product of the Servicing Fee Rate multiplied by the Scheduled
      Principal Balance of the Mortgage Loans as of the Due Date in the preceding
      calendar month; provided, however, that GMAC shall only be entitled to a portion
      of the Servicing Fee calculated on the GMAC Mortgage Loans at the GMAC Servicing
      Fee Rate and Countrywide shall only be entitled to a portion of the Servicing
      Fee calculated on the Countrywide Mortgage Loans at the Countrywide Servicing
      Fee Rate. The Servicing Fee is payable solely from collections of interest
      on
      the Mortgage Loans, except as otherwise provided in Section 3.09 of this
      Agreement or as provided in the Servicing Agreement.

     

    “Servicing
      Fee Rate”:
      0.50%
      per annum.

     

    “Servicing
      Function Participant”:
      Means
      any Sub-Servicer, Subcontractor or any other Person, other than the Servicers,
      the Master Servicer, each Custodian, the Trustee and the Securities
      Administrator, that is determined to be “participating in the servicing
      function” within the meaning of Item 1122 of Regulation AB, without regard to
      any threshold referenced therein.

     

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

     

    
      
        
        

      

      
        84

        
          

        

      

      
        
        

      

    

     

    “Single
      Certificate”:
      With
      respect to any Class of Certificates (other than the Residual Certificates),
      a
      hypothetical Certificate of such Class evidencing a Percentage Interest for
      such
      Class corresponding to an initial Certificate Principal Balance of $1,000.
      With
      respect to the Residual Certificates, a hypothetical Certificate of such Class
      evidencing a 100% Percentage Interest in such Class.

     

    “Sponsor”:
      DB
      Structured Products, Inc. or its successor in interest, in its capacity as
      seller under the Mortgage Loan Purchase Agreement.

     

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

     

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

     

    
      
        
        

      

      
        85

        
          

        

      

      
        
        

      

    

     

    “Stepdown
      Date”:
      The
      earlier to occur of (i) the later to occur of (a) the Distribution Date
      occurring in May 2010 and (b) the first Distribution Date on which the Credit
      Enhancement Percentage (calculated for this purpose only after taking into
      account distributions of principal on the Mortgage Loans, but prior to any
      distribution of the Principal Distribution Amount to the holders of the
      Certificates then entitled to distributions of principal on such Distribution
      Date), is greater than or equal to 58.20% and (ii) the first Distribution Date
      on which the aggregate Certificate Principal Balance of the Class A Certificates
      has been reduced to zero.

     

    “Subcontractor”:
      Means
      any vendor, subcontractor or other Person that is not responsible for the
      overall servicing of Mortgage Loans but performs one or more discrete functions
      identified in Item 1122(d) of Regulation AB (without regard to any threshold
      percentage specified therein) with respect to Mortgage Loans under the direction
      or authority of any Servicer (or a Sub-Servicer of any Servicer), the Master
      Servicer, the Trustee, a Custodian or the Securities Administrator.

     

    “Subordinate
      Certificates”:
      Collectively, the Mezzanine Certificates and the Class CE-1
      Certificates.

     

    “Subsequent
      Group I Mortgage Loan”:
      A
      Subsequent Mortgage Loan identified and expected to be purchased by the Trust
      during the Pre-Funding Period and assigned to the Group I Mortgage
      Loans.

     

    “Subsequent
      Group II Mortgage Loan”:
      A
      Subsequent Mortgage Loan identified and expected to be purchased by the Trust
      during the Pre-Funding Period and assigned to the Group II Mortgage
      Loans.

     

    “Subsequent
      Mortgage Loan”:
      A
      Mortgage Loan sold by the Depositor to the Trust Fund pursuant to Section 2.09,
      such Mortgage Loan being identified on the Mortgage Loan Schedule attached
      to a
      Subsequent Transfer Instrument.

     

    “Subsequent
      Mortgage Loan Purchase Agreement”:
      The
      agreement between the Depositor and the Sponsor, regarding the transfer of
      the
      Subsequent Mortgage Loans by the Sponsor to the Depositor.

     

    “Subsequent
      Recoveries”:
      As of
      any Distribution Date, amounts received during the related Prepayment Period
      by
      the related Servicer specifically related to a defaulted Mortgage Loan or
      disposition of an REO Property prior to the related Prepayment Period that
      resulted in a Realized Loss after the liquidation or disposition of such
      defaulted Mortgage Loan net of any amounts reimbursable to such Servicer related
      to such Mortgage Loan or REO Property.

     

    “Subsequent
      Transfer Date”:
      With
      respect to each Subsequent Transfer Instrument, the date on which the related
      Subsequent Mortgage Loans are transferred to the Trust Fund.

     

    “Subsequent
      Transfer Instrument”:
      Each
      Subsequent Transfer Instrument, dated as of a Subsequent Transfer Date, executed
      by the Trustee and the Depositor substantially in the form attached hereto
      as
      Exhibit K, by which Subsequent Mortgage Loans are transferred to the Trust
      Fund.

     

    
      
        
        

      

      
        86

        
          

        

      

      
        
        

      

    

     

    “Sub-Servicer”:
      Means
      any Person that services Mortgage Loans on behalf of any Servicer and is
      responsible for the performance (whether directly or through sub-servicers
      or
      Subcontractors) of a substantial portion of the material servicing functions
      required to be performed under this Agreement or any related Sub-Servicing
      Agreement that is identified in Item 1122(d) of Regulation AB.

     

    “Sub-Servicing
      Agreement”:
      The
      written contract between a Servicer and a Sub-Servicer relating to servicing
      and
      administration of certain Mortgage Loans as provided in Section 3.02 of this
      Agreement or the Servicing Agreement, as applicable.

     

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

     

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

     

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

     

    “Swap
      Agreement”:
      The
      Interest Rate Swap Agreement, dated as of April 30, 2007, between the
      Supplemental Interest Trust Trustee, and the Swap Provider, including any
      schedule, confirmations, credit support annex or other credit support document
      relating thereto, and attached hereto as Exhibit I.

     

    “Swap
      Credit Support Annex:
      The
      credit support annex, dated as of April 30, 2007, between the Supplemental
      Interest Trust Trustee and the Swap Provider, which is annexed to and forms
      part
      of the Swap Agreement.

     

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

     

    “Swap
      Notional Amount”:
      For
      each calculation period as defined in the Swap Agreement, the lesser of (i)
      the
      aggregate Certificate Principal Balance of the Offered Certificates and (ii)
      the
      amount set forth below:

     

    
      	
              Distribution
                Date

            	 	
              Swap
                Notional Amount ($)

            	 
	
              November
                2007

            	 	 	
              917,668,665

            	 
	
              December
                2007

            	 	 	
              897,576,981

            	 
	
              January
                2008

            	 	 	
              876,010,775

            	 
	
              February
                2008

            	 	 	
              853,165,450

            	 
	
              March
                2008

            	 	 	
              829,880,833

            	 
	
              April
                2008

            	 	 	
              807,178,460

            	 
	
              May
                2008

            	 	 	
              785,054,766

            	 

    

     

    
      
        
        

      

      
        87

        
          

        

      

      
        
        

      

    

     

    
      	
              Distribution
                Date

            	 	 	
              Swap
                Notional Amount ($)

            	 
	
              June
                2008

            	 	 	
              763,494,986

            	 
	
              July
                2008

            	 	 	
              742,484,727

            	 
	
              August
                2008

            	 	 	
              722,009,969

            	 
	
              September
                2008

            	 	 	
              702,057,046

            	 
	
              October
                2008

            	 	 	
              682,595,230

            	 
	
              November
                2008

            	 	 	
              663,548,419

            	 
	
              December
                2008

            	 	 	
              644,842,505

            	 
	
              January
                2009

            	 	 	
              625,127,459

            	 
	
              February
                2009

            	 	 	
              595,758,684

            	 
	
              March
                2009

            	 	 	
              553,157,642

            	 
	
              April
                2009

            	 	 	
              513,515,040

            	 
	
              May
                2009

            	 	 	
              477,694,267

            	 
	
              June
                2009

            	 	 	
              451,402,663

            	 
	
              July
                2009

            	 	 	
              436,910,783

            	 
	
              August
                2009

            	 	 	
              422,958,282

            	 
	
              September
                2009

            	 	 	
              409,403,409

            	 
	
              October
                2009

            	 	 	
              396,233,357

            	 
	
              November
                2009

            	 	 	
              383,435,034

            	 
	
              December
                2009

            	 	 	
              370,998,006

            	 
	
              January
                2010

            	 	 	
              358,911,871

            	 
	
              February
                2010

            	 	 	
              347,166,960

            	 
	
              March
                2010

            	 	 	
              335,754,286

            	 
	
              April
                2010

            	 	 	
              324,664,635

            	 
	
              May
                2010

            	 	 	
              313,887,629

            	 
	
              June
                2010

            	 	 	
              313,887,629

            	 
	
              July
                2010

            	 	 	
              313,664,633

            	 
	
              August
                2010

            	 	 	
              304,910,457

            	 
	
              September
                2010

            	 	 	
              296,402,853

            	 
	
              October
                2010

            	 	 	
              288,134,791

            	 
	
              November
                2010

            	 	 	
              280,099,387

            	 
	
              December
                2010

            	 	 	
              272,290,024

            	 
	
              January
                2011

            	 	 	
              264,700,288

            	 
	
              February
                2011

            	 	 	
              257,323,972

            	 
	
              March
                2011

            	 	 	
              250,155,018

            	 
	
              April
                2011

            	 	 	
              243,187,552

            	 
	
              May
                2011

            	 	 	
              236,415,847

            	 
	
              June
                2011

            	 	 	
              229,834,355

            	 
	
              July
                2011

            	 	 	
              223,437,690

            	 
	
              August
                2011

            	 	 	
              217,220,624

            	 
	
              September
                2011

            	 	 	
              211,178,065

            	 
	
              October
                2011

            	 	 	
              205,305,073

            	 
	
              November
                2011

            	 	 	
              199,596,848

            	 
	
              December
                2011

            	 	 	
              194,048,729

            	 
	
              January
                2012

            	 	 	
              188,656,163

            	 
	
              February
                2012

            	 	 	
              183,414,021

            	 
	
              March
                2012

            	 	 	
              178,311,779

            	 
	
              April
                2012

            	 	 	
              173,326,384

            	 

    

     

    
      
        
        

      

      
        88

        
          

        

      

      
        
        

      

    

     

    “Swap
      Provider”:
      The
      swap provider under the Swap Agreement either (a) entitled to receive payments
      from the Supplemental Interest Trust or (b) required to make payments to the
      Supplemental Interest Trust, in either case pursuant to the terms of the Swap
      Agreement, and any successor in interest or assign. Initially, the Swap Provider
      shall be Deutsche Bank AG, New York Branch.

     

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

     

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

     

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

     

    “Telerate
      Page 3750”:
      The
      display designated as page “3750” on the Dow Jones Telerate Capital Markets
      Report (or such other page as may replace page 3750 on that report for the
      purpose of displaying London interbank offered rates of major
      banks).

     

    “Termination
      Price”:
      As
      defined in Section 10.01.

     

    “Terminator”:
      As
      defined in Section 10.01.

     

    “Transfer”:
      Any
      direct or indirect transfer, sale, pledge, hypothecation, or other form of
      assignment of any Ownership Interest in a Certificate.

     

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

     

    “Transferor”:
      Any
      Person who is disposing by Transfer of any Ownership Interest in a
      Certificate.

     

    
      
        
        

      

      
        89

        
          

        

      

      
        
        

      

    

     

    “Trigger
      Event”:
      With
      respect to any Distribution Date, a Trigger Event is in effect if (x) the
      percentage obtained by dividing (i) the principal amount of Mortgage Loans
      delinquent 60 days or more (including Mortgage Loans in foreclosure, bankruptcy
      and REO) by (ii) the aggregate principal balance of the Mortgage Loans, in
      each
      case as, of the last day of the previous calendar month exceeds approximately
      27.50% of the Credit Enhancement Percentage with respect to such Distribution
      Date or (y) the aggregate amount of Realized Losses incurred since the Cut-off
      Date through the last day of the related Due Period divided by the aggregate
      principal balance of the Mortgage Loans as of the Cut-off exceeds the applicable
      percentages set forth below with respect to such Distribution Date:

     

    
      	
              Distribution
                Date

            	 	
              Percentages

            	 
	
              May
                2009 to April 2010

            	 	 	
              2.15%
                plus 1/12 of 2.45% for each month thereafter

            	 
	
              May
                2010 to April 2011

            	 	 	
              4.60%
                plus 1/12 of 2.55% for each month thereafter

            	 
	
              May
                2011 to April 2012

            	 	 	
              7.15%
                plus 1/12 of 2.10% for each month thereafter

            	 
	
              May
                2012 to April 2013

            	 	 	
              9.25%
                plus 1/12 of 0.50% for each month thereafter

            	 
	
              May
                2013 and thereafter

            	 	 	
              9.75%

            	
               

            

    

    

    “Trust”:
      ACE
      Securities Corp., Home Equity Loan Trust, Series 2007-HE4, the trust created
      hereunder.

     

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

     

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

     

    “Trustee”:
      HSBC
      Bank USA, National Association, a national banking association, or its successor
      in interest, or any successor trustee appointed as herein provided.

     

    “Uncertificated
      Balance”:
      The
      amount of the REMIC Regular Interests outstanding as of any date of
      determination. As of the Closing Date, the Uncertificated Balance of each REMIC
      Regular Interest shall equal the amount set forth in the Preliminary Statement
      hereto as its initial uncertificated balance. On each Distribution Date, the
      Uncertificated Balance of the REMIC Regular Interest shall be reduced by all
      distributions of principal made on such REMIC Regular Interest on such
      Distribution Date pursuant to Section 5.01 and, if and to the extent necessary
      and appropriate, shall be further reduced on such Distribution Date by Realized
      Losses as provided in Section 5.04 and the Uncertificated Balance of REMIC
      II
      Regular Interest ZZ shall be increased by interest deferrals as provided in
      Section 5.01. The Uncertificated Balance of each REMIC Regular Interest shall
      never be less than zero.

     

    “Uncertificated
      Interest”:
      With
      respect to any REMIC Regular Interest for any Distribution Date, one month’s
      interest at the related REMIC Remittance Rate applicable to such REMIC Regular
      Interest for such Distribution Date, accrued on the Uncertificated Balance
      thereof immediately prior to such Distribution Date. Uncertificated Interest
      in
      respect of the REMIC Regular Interests shall accrue on the basis of a 360-day
      year consisting of twelve 30-day months. Uncertificated Interest with respect
      to
      each Distribution Date, as to any REMIC Regular Interest, shall be reduced
      by an
      amount equal to the sum of (a) the aggregate Prepayment Interest Shortfall,
      if
      any, for such Distribution Date to the extent not covered by payments pursuant
      to Section 3.23 or Section 4.19 of this Agreement or pursuant to the Servicing
      Agreement and (b) the aggregate amount of any Relief Act Interest Shortfall,
      if
      any allocated, in each case, to such REMIC Regular Interest or REMIC Regular
      Interest pursuant to Section 1.02. In addition, Uncertificated Interest with
      respect to each Distribution Date, as to any REMIC Regular Interest, shall
      be
      reduced by Realized Losses, if any, allocated to such REMIC Regular Interest
      pursuant to Section 1.02 and Section 5.04.

     

    
      
        
        

      

      
        90

        
          

        

      

      
        
        

      

    

     

    “Uninsured
      Cause”:
      Any
      cause of damage to a Mortgaged Property such that the complete restoration
      of
      such property is not fully reimbursable by the hazard insurance policies
      required to be maintained pursuant to Section 3.11.

     

    “United
      States Person”:
      A
      citizen or resident of the United States, a corporation, partnership or other
      entity created or organized in, or under the laws of, the United States or
      any
      political subdivision thereof (except, in the case of a partnership, to the
      extent provided in regulations) provided that, for purposes solely of the
      restrictions on the transfer of any Class R Certificate, no partnership or
      other
      entity treated as a partnership for United States federal income tax purposes
      shall be treated as a United States Person unless all persons that own an
      interest in such partnership either directly or through any entity that is
      not a
      corporation for United States federal income tax purposes are required to be
      United States Persons, or an estate whose income is subject to United States
      federal income tax regardless of its source, or a trust if a court within the
      United States is able to exercise primary supervision over the administration
      of
      the trust and one or more United States persons have the authority to control
      all substantial decisions of the trust. To the extent prescribed in regulations
      by the Secretary of the Treasury, a trust which was in existence on August
      20,
      1996 (other than a trust treated as owned by the grantor under subpart E of
      part
      I of subchapter J of chapter I of the Code), and which was treated as a United
      States person on August 20, 1996 may elect to continue to be treated as a United
      States person notwithstanding the previous sentence. The term “United States”
shall have the meaning set forth in Section 7701 of the Code.

     

    “Value”:
      With
      respect to any Mortgaged Property, the lesser of (i) the lesser of (a) the
      value
      thereof as determined by an appraisal made for the related originator of the
      Mortgage Loan at the time of origination of the Mortgage Loan by an appraiser
      who met the minimum requirements of Fannie Mae and Freddie Mac and (b) the
      value
      thereof as determined by a review appraisal conducted by the related originator
      of the Mortgage Loan in accordance with the related originator’s underwriting
      guidelines, and (ii) the purchase price paid for the related Mortgaged Property
      by the Mortgagor with the proceeds of the Mortgage Loan; provided, however,
      (A)
      in the case of a Refinanced Mortgage Loan, such value of the Mortgaged Property
      is based solely upon the lesser of (1) the value determined by an appraisal
      made
      for the related originator of the Mortgage Loan of such Refinanced Mortgage
      Loan
      at the time of origination of such Refinanced Mortgage Loan by an appraiser
      who
      met the minimum requirements of Fannie Mae and Freddie Mac and (2) the value
      thereof as determined by a review appraisal conducted by the related originator
      of the Mortgage Loan in accordance with the related originator’s underwriting
      guidelines, and (B) in the case of a Mortgage Loan originated in connection
      with
      a “lease-option purchase,” such value of the Mortgaged Property is based on the
      lower of the value determined by an appraisal made for the originator of such
      Mortgage Loan at the time of origination or the sale price of such Mortgaged
      Property if the “lease option purchase price” was set less than 12 months prior
      to origination, and is based on the value determined by an appraisal made for
      the related originator of such Mortgage Loan at the time of origination if
      the
“lease option purchase price” was set 12 months or more prior to
      origination.

     

    
      
        
        

      

      
        91

        
          

        

      

      
        
        

      

    

     

    “Verification
      Report”:
      As
      defined in Section 4.20. 

     

    “Voting
      Rights”:
      The
      portion of the voting rights of all of the Certificates which is allocated
      to
      any such Certificate. With respect to any date of determination, 98% of all
      Voting Rights will be allocated among the holders of the Class A Certificates,
      the Mezzanine Certificates and the Class CE-1 Certificates in proportion to
      the
      then outstanding Certificate Principal Balances of their respective
      Certificates, 1% of all Voting Rights will be allocated among the holders of
      the
      Class P Certificates and 1% of all Voting Rights will be allocated among the
      holders of the Class R Certificates. The Voting Rights allocated to each Class
      of Certificate shall be allocated among Holders of each such Class in accordance
      with their respective Percentage Interests as of the most recent Record
      Date.

     

    “Wells
      Fargo”:
      Wells
      Fargo Bank, National Association in its capacity as a Custodian under the Wells
      Fargo Custodial Agreement, or any successor thereto.

     

    “Wells
      Fargo Custodial Agreement”:
      The
      Custodial Agreement dated as of April 1, 2007, among the Trustee, Wells Fargo
      and the Servicers, as may be amended or supplemented from time to
      time.

     

    SECTION
      1.02. Allocation
      of Certain Interest Shortfalls.

     

    For
      purposes of calculating the amount of Accrued Certificate Interest and the
      amount of the Interest Distribution Amount for the Class A Certificates, the
      Mezzanine Certificates and the Class CE-1 Certificates for any Distribution
      Date, (1) the aggregate amount of any Prepayment Interest Shortfalls (to the
      extent not covered by payments by the Servicers pursuant to Section 3.23 of
      this
      Agreement or pursuant to the Servicing Agreement or by the Master Servicer
      pursuant to Section 4.19 of this Agreement) and any Relief Act Interest
      Shortfalls incurred in respect of the Mortgage Loans for any Distribution Date
      shall be allocated first, to the Class CE-1 Certificates, second, to the Class
      M-9 Certificates, third, to the Class M-8 Certificates, fourth, to the Class
      M-7
      Certificates, fifth, to the Class M-6 Certificates, sixth, to the Class M-5
      Certificates, seventh, to the Class M-4 Certificates, eighth, to the Class
      M-3
      Certificates, ninth, to the Class M-2 Certificates, tenth, to the Class M-1
      Certificates and eleventh, to the Class A Certificates, on a pro
      rata
      basis,
      in each case based on, and to the extent of, one month’s interest at the then
      applicable respective Pass-Through Rate on the respective Certificate Principal
      Balance or Notional Amount, as applicable, of each such Certificate and (2)
      the
      aggregate amount of any Realized Losses allocated to the Mezzanine Certificates
      and Net WAC Rate Carryover Amounts paid to the Class A Certificates and the
      Mezzanine Certificates incurred for any Distribution Date shall be allocated
      to
      the Class CE-1 Certificates on a pro
      rata
      basis
      based on, and to the extent of, one month’s interest at the then applicable
      respective Pass-Through Rate on the respective Certificate Principal Balance
      or
      Notional Amount thereof, as applicable.

     

    
      
        
        

      

      
        92

        
          

        

      

      
        
        

      

    

     

    For
      purposes of calculating the amount of Uncertificated Interest for the REMIC
      I
      Regular Interests for any Distribution Date, the aggregate amount of any
      Prepayment Interest Shortfalls (to the extent not covered by payments by the
      Servicers pursuant to Section 3.22 of this Agreement or the Master Servicer
      pursuant to Section 4.18 or by the Interim Servicer pursuant to the Interim
      Servicing Agreement) shall be allocated first, (i) with respect to the Group
      I
      Mortgage Loans, to REMIC I Regular Interest LT1 and REMIC I Regular Interest
      LT1PF, in each case to the extent of one month's interest at the then applicable
      respective REMIC I Remittance Rate on the respective Uncertificated Balance
      of
      each such REMIC I Regular Interest; provided, however, with respect to the
      first
      three Distribution Dates, such amounts relating to the Initial Group I Mortgage
      Loans shall be allocated to REMIC I Regular Interest LT1 and such amounts
      relating to the Subsequent Group I Mortgage Loans shall be allocated to REMIC
      I
      Regular Interest LT1PF and (b) with respect to the Group II Mortgage Loans,
      to
      REMIC I Regular Interest LT2 and REMIC I Regular Interest LT2PF, in each case
      to
      the extent of one month's interest at the then applicable respective REMIC
      I
      Remittance Rate on the respective Uncertificated Balance of each such REMIC
      I
      Regular Interest; provided, however, with respect to the first three
      Distribution Dates, such amounts relating to the Initial Group II Mortgage
      Loans
      shall be allocated to REMIC I Regular Interest LT2 and such amounts relating
      to
      the Subsequent Group II Mortgage Loans shall be allocated to REMIC I Regular
      Interest LT2PF.

     

    For
      purposes of calculating the amount of Uncertificated Interest for the REMIC
      II
      Group I Regular Interests for any Distribution Date, the aggregate amount of
      any
      Prepayment Interest Shortfalls (to the extent not covered by payments by the
      related Servicer pursuant to Section 3.23 of this Agreement or pursuant to
      the
      Servicing Agreement or the Master Servicer pursuant to Section 4.19) and any
      Relief Act Interest Shortfalls incurred in respect of Group I Mortgage Loans
      shall be allocated first, to REMIC II Regular Interest I and to the REMIC II
      Group I Regular Interests ending with the designation “B”, pro
      rata
      based
      on, and to the extent of, one month’s interest at the then applicable respective
      REMIC II Remittance Rates on the respective Uncertificated Principal Balances
      of
      each such REMIC II Regular Interest, and then, to REMIC II Group I Regular
      Interests ending with the designation “A”, pro rata based on, and to the extent
      of, one month’s interest at the then applicable respective REMIC II Remittance
      Rates on the respective Uncertificated Balances of each such REMIC II Regular
      Interest.

     

    For
      purposes of calculating the amount of Uncertificated Interest for the REMIC
      II
      Group II Regular Interests for any Distribution Date, the aggregate amount
      of
      any Prepayment Interest Shortfalls (to the extent not covered by payments by
      the
      related Servicer pursuant to Section 3.23 of this Agreement or pursuant to
      the
      Servicing Agreement or the Master Servicer pursuant to Section 4.19) and any
      Relief Act Interest Shortfalls incurred in respect of Group II Mortgage Loans
      shall be allocated first, to REMIC II Regular Interest II and to the REMIC
      II
      Group II Regular Interests ending with the designation “B”, pro
      rata
      based
      on, and to the extent of, one month’s interest at the then applicable respective
      REMIC II Remittance Rates on the respective Uncertificated Principal Balances
      of
      each such REMIC II Regular Interest , and then, to REMIC II Group II Regular
      Interests ending with the designation “A”, pro rata based on, and to the extent
      of, one month’s interest at the then applicable respective REMIC II Remittance
      Rates on the respective Uncertificated Balances of each such REMIC II Regular
      Interest. 

     

    
      
        
        

      

      
        93

        
          

        

      

      
        
        

      

    

     

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

     

    (A) The
      REMIC
      III Marker Allocation Percentage of the aggregate amount of any Prepayment
      Interest Shortfalls (to the extent not covered by payments by the Servicers
      pursuant to Section 3.23 of this Agreement or the Master Servicer pursuant
      to
      Section 4.19) and the REMIC III Marker Allocation Percentage of any Relief
      Act
      Interest Shortfalls incurred in respect of the Mortgage Loans for any
      Distribution Date shall be allocated among REMIC III Regular Interest AA, REMIC
      III Regular Interest A-1, REMIC III Regular Interest A-2A, REMIC III Regular
      Interest A-2B, REMIC III Regular Interest A-2C, REMIC III Regular Interest
      A-2D,
      REMIC III Regular Interest M-1, REMIC III Regular Interest M-2, REMIC III
      Regular Interest M-3, REMIC III Regular Interest M-4, REMIC III Regular Interest
      M-5, REMIC III Regular Interest M-6, REMIC III Regular Interest M-7, REMIC
      III
      Regular Interest M-8, REMIC III Regular Interest M-9, REMIC III Regular Interest
      ZZ and REMIC III Regular Interest P pro
      rata
      based
      on, and to the extent of, one month’s interest at the then applicable respective
      REMIC III Remittance Rate on the respective Uncertificated Balance of each
      such
      REMIC III Regular Interest; and

     

    (B) The
      REMIC
      III Sub WAC Allocation Percentage of the aggregate amount of any Prepayment
      Interest Shortfalls (to the extent not covered by payments by the Servicers
      pursuant to Section 3.23 of this Agreement or by the Master Servicer pursuant
      to
      Section 4.19 of this Agreement) and the REMIC III Sub WAC Allocation Percentage
      of any Relief Act Interest Shortfalls incurred in respect of the Mortgage Loans
      for any Distribution Date shall be allocated first, to Uncertificated Interest
      payable to REMIC III Regular Interest I-SUB, REMIC III Regular Interest I-GRP,
      REMIC III Regular Interest II-SUB, REMIC III Regular Interest II-GRP and REMIC
      III Regular Interest XX, pro
      rata
      based
      on, and to the extent of, one month’s interest at the then applicable respective
      REMIC III Remittance Rate on the respective Uncertificated Balance of each
      such
      REMIC III Regular Interest.

     

    SECTION
      1.03. Rights
      of
      the NIMS Insurer.

     

    Each
      of
      the rights of the NIMS Insurer set forth in this Agreement shall exist so long
      as (i) the NIMS Insurer has undertaken to guarantee certain payments of notes
      issued pursuant to the Indenture and (ii) the notes issued pursuant to the
      Indenture remain outstanding or the NIMS Insurer is owed amounts in respect
      of
      its guarantee of payment on such notes; provided, however, the NIMS Insurer
      shall not have any rights hereunder (except pursuant to Section 11.01 and any
      rights to indemnification hereunder in the case of clause (ii) below) so long
      as
      (i) the NIMS Insurer has not undertaken to guarantee certain payments of notes
      issued pursuant to the Indenture or (ii) any default has occurred and is
      continuing under the insurance policy issued by the NIMS Insurer with respect
      to
      such notes.

     

    
      
        
        

      

      
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    ARTICLE
      II

    CONVEYANCE
      OF MORTGAGE LOANS;

    ORIGINAL
      ISSUANCE OF CERTIFICATES

     

    SECTION
      2.01. Conveyance
      of the Mortgage Loans.

     

    The
      Depositor, concurrently with the execution and delivery hereof, does hereby
      transfer, assign, set over and otherwise convey to the Trustee, on behalf of
      the
      Trust, without recourse, for the benefit of the Certificateholders, all the
      right, title and interest of the Depositor, including any security interest
      therein for the benefit of the Depositor, in and to the Mortgage Loans
      identified on the Mortgage Loan Schedule, the rights of the Depositor under
      the
      Mortgage Loan Purchase Agreement, the Subsequent Mortgage Loan Purchase
      Agreement and such assets as shall from time to time be credited or required
      to
      be credited by the terms of this Agreement to the Pre-Funding Account and the
      Capitalized Interest Account, the Assignment Agreement, the Servicing Agreement
      (including, without limitation the right to enforce the obligations of the
      other
      parties thereto thereunder), the rights of the Depositor under the Cap
      Contracts, the right to any payments made by the Cap Counterparty under the
      Cap
      Contracts, the right to any Net Swap Payment and any Swap Termination Payment
      made by the Swap Provider, and all other assets included or to be included
      in
      REMIC I. Such assignment includes all interest and principal received by the
      Depositor and the Servicer on or with respect to the Mortgage Loans (other
      than
      payments of principal and interest due on such Mortgage Loans on or before
      the
      Cut-off Date). A copy of the Mortgage Loan Purchase Agreement is attached hereto
      as Exhibit F.

     

    In
      connection with such transfer and assignment, the Depositor does hereby deliver
      to, and deposit with the related Custodian pursuant to the related Custodial
      Agreement the documents with respect to each Mortgage Loan as described under
      Section 2 of the Custodial Agreements (the “Mortgage Loan Documents”). In
      connection with such delivery and as further described in the Custodial
      Agreements, the Custodians will be required to review such Mortgage Loan
      Documents and deliver to the Trustee, the Depositor, the Servicers and the
      Sponsor certifications (in the forms attached to the Custodial Agreements)
      with
      respect to such review with exceptions noted thereon. In addition, under the
      Custodial Agreements the Depositor will be required to cure certain defects
      with
      respect to the Mortgage Loan Documents for the related Mortgage Loans after
      the
      delivery thereof by the Depositor to the Custodians as more particularly set
      forth therein.

     

    Notwithstanding
      anything to the contrary contained herein, the parties hereto acknowledge that
      the functions of the Trustee with respect to the custody, acceptance, inspection
      and release of the Mortgage Files, including, but not limited to certain
      insurance policies and documents contemplated by Section 4.11, and preparation
      and delivery of the certifications shall be performed by the Custodians pursuant
      to the terms and conditions of the Custodial Agreements.

     

    The
      Depositor shall deliver or cause the related originator to deliver to the
      Servicer copies of all trailing documents required to be included in the
      Mortgage File at the same time the originals or certified copies thereof are
      delivered to the Trustee or Custodians, such documents including the mortgagee
      policy of title insurance and any Mortgage Loan Documents upon return from
      the
      recording office. The Servicers shall not be responsible for any custodian
      fees
      or other costs incurred in obtaining such documents and the Depositor shall
      cause the Servicers to be reimbursed for any such costs the related Servicer
      may
      incur in connection with performing its obligations under this Agreement or
      under the Servicing Agreement, as applicable.

     

    
      
        
        

      

      
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    The
      Mortgage Loans permitted by the terms of this Agreement to be included in the
      Trust are limited to (i) Mortgage Loans (which the Depositor acquired pursuant
      to the Mortgage Loan Purchase Agreement, which contains, among other
      representations and warranties, a representation and warranty of the Sponsor
      that no Mortgage Loan is a “High-Cost Home Loan” as defined in the New Jersey
      Home Ownership Act effective November 27, 2003 or as defined in the New Mexico
      Home Loan Protection Act effective January 1, 2004, as defined in the
      Massachusetts Predatory Home Loan Practices Act, effective November 7, 2004
      (Mass. Ann. Laws Ch. 183C) or as defined in the Indiana Home Loan Practices
      Act,
      effective January 1, 2005 (Ind. Code Ann. Sections 24-9-1 through 24-9-9) or
      a
“high risk home loan” under the Illinois High Risk Home Loan Act, effective as
      of January 1, 2004) and (ii) Qualified Substitute Mortgage Loans (which, by
      definition as set forth herein and referred to in the Mortgage Loan Purchase
      Agreement, are required to conform to, among other representations and
      warranties, the representation and warranty of the Sponsor that no Qualified
      Substitute Mortgage Loan is a “High-Cost Home Loan” as defined in the New Jersey
      Home Ownership Act effective November 27, 2003 or as defined in the New Mexico
      Home Loan Protection Act effective January 1, 2004, as defined in the
      Massachusetts Predatory Home Loan Practices Act, effective November 7, 2004
      (Mass. Ann. Laws Ch. 183C) or as defined in the Indiana Home Loan Practices
      Act,
      effective January 1, 2005 (Ind. Code Ann. Sections 24-9-1 through 24-9-9) or
      a
“high risk home loan” under the Illinois High Risk Home Loan Act, effective as
      of January 1, 2004). The Depositor and the Trustee on behalf of the Trust
      understand and agree that it is not intended that any Mortgage Loan be included
      in the Trust that is a “High-Cost Home Loan” as defined in the New Jersey Home
      Ownership Act effective November 27, 2003, as defined in the New Mexico Home
      Loan Protection Act effective January 1, 2004, as defined in the Massachusetts
      Predatory Home Loan Practices Act, effective November 7, 2004 (Mass. Ann. Laws
      Ch. 183C) or as defined in the Indiana Home Loan Practices Act, effective
      January 1, 2005 (Ind. Code Ann. Sections 24-9-1 through 24-9-9) or a “high risk
      home loan” under the Illinois High Risk Home Loan Act, effective as of January
      1, 2004.

     

    SECTION
      2.02. Acceptance
      of REMIC I by Trustee.

     

    The
      Trustee acknowledges receipt, subject to the provisions of Section 2.01 hereof
      and Section 2 of the related Custodial Agreement, of the Mortgage Loan Documents
      and all other assets included in the definition of “REMIC I” under clauses (i),
      (iii), (iv) and (v) (to the extent of amounts deposited into the Distribution
      Account) and declares that it holds (or the applicable Custodian on its behalf
      holds) and will hold such documents and the other documents delivered to it
      constituting a Mortgage Loan Document, and that it holds (or the applicable
      Custodian on its behalf holds) or will hold all such assets and such other
      assets included in the definition of “REMIC I” in trust for the exclusive use
      and benefit of all present and future Certificateholders.

     

    
      
        
        

      

      
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    SECTION
      2.03. Repurchase
      or Substitution of Mortgage Loans.

     

    (a) Upon
      discovery or receipt of notice of any materially defective document in, or
      that
      a document is missing from, a Mortgage File or of a breach by the Sponsor of
      any
      representation, warranty or covenant under the Mortgage Loan Purchase Agreement
      or Subsequent Mortgage Loan Purchase Agreement in respect of any Mortgage Loan
      that materially and adversely affects the value of such Mortgage Loan or the
      interest therein of the Certificateholders, the Trustee shall promptly notify
      the Sponsor and the related Servicer of such defect, missing document or breach
      and request that the Sponsor deliver such missing document, cure such defect
      or
      breach within sixty (60) days from the date the Sponsor was notified of such
      missing document, defect or breach, and if the Sponsor does not deliver such
      missing document or cure such defect or breach in all material respects during
      such period, the Trustee shall enforce the obligations of the Sponsor under
      the
      Mortgage Loan Purchase Agreement to repurchase such Mortgage Loan from REMIC
      I
      at the Purchase Price within ninety (90) or the Subsequent Mortgage Loan
      Purchase Agreement, as applicable, days after the date on which the Sponsor
      was
      notified of such missing document, defect or breach, if and to the extent that
      the Sponsor is obligated to do so under the Mortgage Loan Purchase Agreement
      or
      the Subsequent Mortgage Loan Purchase Agreement, as applicable. The Purchase
      Price for the repurchased Mortgage Loan shall be remitted to the related
      Servicer for deposit in the related Collection Account and the Trustee, upon
      receipt of written certification from the related Servicer of such deposit,
      shall release or cause the applicable Custodian (upon receipt of a request
      for
      release in the form attached to the related Custodial Agreement) to release
      to
      the Sponsor the related Mortgage File and the Trustee shall execute and deliver
      such instruments of transfer or assignment, in each case without recourse,
      representation or warranty, as the Sponsor shall furnish to it and as shall
      be
      necessary to vest in the Sponsor any Mortgage Loan released pursuant hereto,
      and
      the Trustee shall not have any further responsibility with regard to such
      Mortgage File. In lieu of repurchasing any such Mortgage Loan as provided above,
      if so provided in the Mortgage Loan Purchase Agreement or the Subsequent
      Mortgage Loan Purchase Agreement, as applicable, the Sponsor may cause such
      Mortgage Loan to be removed from REMIC I (in which case it shall become a
      Deleted Mortgage Loan) and substitute one or more Qualified Substitute Mortgage
      Loans in the manner and subject to the limitations set forth in Section 2.03(b).
      It is understood and agreed that the obligation of the Sponsor to cure or to
      repurchase (or to substitute for) any Mortgage Loan as to which a document
      is
      missing, a material defect in a constituent document exists or as to which
      such
      a breach has occurred and is continuing shall constitute the sole remedy
      respecting such omission, defect or breach available to the Trustee and the
      Certificateholders. Notwithstanding anything to the contrary contained herein,
      any breach of a representation or warranty with respect to the Group I Mortgage
      Loans contained in clauses (viii), (xxxviii), (xxxix), (xl), (xli), (xlviii),
      (xlix), (lviii), (lxii), (lxv), (lxx), (lxxi), (lxxiii) and/or (lxxiv) of
      Section 6 of the Mortgage Loan Purchase Agreement or the Subsequent Mortgage
      Loan Purchase Agreement, as applicable, shall be automatically deemed to affect
      materially and adversely the interests of the Holders of the Group I
      Certificates.

     

    In
      addition, promptly upon the earlier of discovery by a Servicer or receipt of
      notice by a Servicer of the breach of the representation or covenant of the
      Sponsor set forth in Section 5(xii) of the Mortgage Loan Purchase Agreement
      or
      the Subsequent Mortgage Loan Purchase Agreement, as applicable, which materially
      and adversely affects the interests of the Holders of the Class P Certificates
      in any Prepayment Charge, the related Servicer shall promptly notify the Sponsor
      and the Trustee of such breach. The Trustee shall enforce the obligations of
      the
      Sponsor under the Mortgage Loan Purchase Agreement or the Subsequent Mortgage
      Loan Purchase Agreement, as applicable, to remedy such breach to the extent
      and
      in the manner set forth in the Mortgage Loan Purchase Agreement or the
      Subsequent Mortgage Loan Purchase Agreement, as applicable.

     

    
      
        
        

      

      
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    (b) Any
      substitution of Qualified Substitute Mortgage Loans for Deleted Mortgage Loans
      made pursuant to Section 2.03(a) must be effected prior to the date which is
      two
      years after the Startup Day for REMIC I.

     

    As
      to any
      Deleted Mortgage Loan for which the Sponsor substitutes a Qualified Substitute
      Mortgage Loan or Loans, such substitution shall be effected by the Sponsor
      delivering to the Trustee or the applicable Custodian on behalf of the Trustee,
      for such Qualified Substitute Mortgage Loan or Loans, the Mortgage Note, the
      Mortgage, the Assignment to the Trustee, and such other documents and
      agreements, with all necessary endorsements thereon, as are required by Section
      2 of the related Custodial Agreement, as applicable, together with an Officers’
Certificate providing that each such Qualified Substitute Mortgage Loan
      satisfies the definition thereof and specifying the Substitution Shortfall
      Amount (as described below), if any, in connection with such substitution.
      The
      applicable Custodian on behalf of the Trustee shall acknowledge receipt of
      such
      Qualified Substitute Mortgage Loan or Loans and, within ten (10) Business Days
      thereafter, review such documents and deliver to the Depositor, the Trustee,
      the
      NIMS Insurer and the related Servicer, with respect to such Qualified Substitute
      Mortgage Loan or Loans, an initial certification pursuant to the related
      Custodial Agreement, with any applicable exceptions noted thereon. Within one
      year of the date of substitution, the applicable Custodian on behalf of the
      Trustee shall deliver to the Depositor, the Trustee, the NIMS Insurer and the
      related Servicer a final certification pursuant to the related Custodial
      Agreement with respect to such Qualified Substitute Mortgage Loan or Loans,
      with
      any applicable exceptions noted thereon. Monthly Payments due with respect
      to
      Qualified Substitute Mortgage Loans in the month of substitution are not part
      of
      REMIC I and will be retained by the Sponsor. For the month of substitution,
      distributions to Certificateholders will reflect the Monthly Payment due on
      such
      Deleted Mortgage Loan on or before the Due Date in the month of substitution,
      and the Sponsor shall thereafter be entitled to retain all amounts subsequently
      received in respect of such Deleted Mortgage Loan. The Depositor shall give
      or
      cause to be given written notice to the Certificateholders and the NIMS Insurer
      that such substitution has taken place, shall amend the Mortgage Loan Schedule
      to reflect the removal of such Deleted Mortgage Loan from the terms of this
      Agreement and the substitution of the Qualified Substitute Mortgage Loan or
      Loans and shall deliver a copy of such amended Mortgage Loan Schedule to the
      Trustee, the NIMS Insurer and the Servicer. Upon such substitution, such
      Qualified Substitute Mortgage Loan or Loans shall constitute part of the Trust
      Fund and shall be subject in all respects to the terms of this Agreement and
      the
      Mortgage Loan Purchase Agreement or Subsequent Mortgage Loan Purchase Agreement,
      as applicable, including all applicable representations and warranties thereof
      included herein or in the Mortgage Loan Purchase Agreement or Subsequent
      Mortgage Loan Purchase Agreement, as applicable.

     

    For
      any
      month in which the Sponsor substitutes one or more Qualified Substitute Mortgage
      Loans for one or more Deleted Mortgage Loans, the related Servicer will
      determine the amount (the “Substitution Shortfall Amount”), if any, by which the
      aggregate Purchase Price of all such Deleted Mortgage Loans exceeds the
      aggregate of, as to each such Qualified Substitute Mortgage Loan, the Scheduled
      Principal Balance thereof as of the date of substitution, together with one
      month’s interest on such Scheduled Principal Balance at the applicable Net
      Mortgage Rate, plus all outstanding P&I Advances and Servicing Advances
      (including Nonrecoverable P&I Advances and Nonrecoverable Servicing
      Advances) related thereto. On the date of such substitution, the Sponsor will
      deliver or cause to be delivered to the related Servicer for deposit in the
      related Collection Account an amount equal to the Substitution Shortfall Amount,
      if any, and the Trustee or the applicable Custodian on behalf of the Trustee,
      upon receipt of the related Qualified Substitute Mortgage Loan or Loans, upon
      receipt of a request for release in the form attached to the related Custodial
      Agreement and certification by the related Servicer of such deposit, shall
      release to the Sponsor the related Mortgage File or Files and the Trustee shall
      execute and deliver such instruments of transfer or assignment, in each case
      without recourse, representation or warranty, as the Sponsor shall deliver
      to it
      and as shall be necessary to vest therein any Deleted Mortgage Loan released
      pursuant hereto.

     

    
      
        
        

      

      
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    In
      addition, the Sponsor shall obtain at its own expense and deliver to the Trustee
      an Opinion of Counsel to the effect that such substitution will not cause (a)
      any federal tax to be imposed on any Trust REMIC, including without limitation,
      any federal tax imposed on “prohibited transactions” under Section 860F(a)(1) of
      the Code or on “contributions after the startup date” under Section 860G(d)(1)
      of the Code, or (b) any Trust REMIC to fail to qualify as a REMIC at any time
      that any Certificate is outstanding.

     

    (c) Upon
      discovery by the Depositor, the Sponsor, the related Servicer, the NIMS Insurer
      or the Trustee that any Mortgage Loan does not constitute a “qualified mortgage”
within the meaning of Section 860G(a)(3) of the Code, the party discovering
      such
      fact shall within two (2) Business Days give written notice thereof to the
      other
      parties. In connection therewith, the Sponsor shall repurchase or substitute
      one
      or more Qualified Substitute Mortgage Loans for the affected Mortgage Loan
      within ninety (90) days of the earlier of discovery or receipt of such notice
      with respect to such affected Mortgage Loan. Such repurchase or substitution
      shall be made by (i) the Sponsor if the affected Mortgage Loan’s status as a
      non-qualified mortgage is or results from a breach of any representation,
      warranty or covenant made by the Sponsor under the Mortgage Loan Purchase
      Agreement or Subsequent Mortgage Loan Purchase Agreement, as applicable, or
      (ii)
      the Depositor, if the affected Mortgage Loan’s status as a non-qualified
      mortgage does not result from a breach of a representation or warranty. Any
      such
      repurchase or substitution shall be made in the same manner as set forth in
      Section 2.03(a). The Trustee shall reconvey to the Sponsor the Mortgage Loan
      to
      be released pursuant hereto in the same manner, and on the same terms and
      conditions, as it would a Mortgage Loan repurchased for breach of a
      representation or warranty.

     

    (d) With
      respect to a breach of the representations made pursuant to Section 5(xii)
      of
      the Mortgage Loan Purchase Agreement or Subsequent Mortgage Loan Purchase
      Agreement, as applicable, that materially and adversely affects the value of
      such Mortgage Loan or the interest therein of the Certificateholders, the
      Sponsor shall be required to take the actions set forth in this Section
      2.03.

     

    (e) Within
      ninety (90) days of the earlier of discovery by a Servicer or receipt of notice
      by a Servicer of the breach of any representation, warranty or covenant of
      the
      related Servicer set forth in Section 2.05 which materially and adversely
      affects the interests of the Certificateholders in any Mortgage Loan or
      Prepayment Charge, such Servicer shall cure such breach in all material
      respects.

     

    
      
        
        

      

      
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    SECTION
      2.04. Representations
      and Warranties of the Master Servicer.

     

    The
      Master Servicer hereby represents, warrants and covenants to Ocwen, GMAC, the
      Depositor and the Trustee, for the benefit of each of the Trustee and the
      Certificateholders, that as of the Closing Date or as of such date specifically
      provided herein:

     

    (i) The
      Master Servicer is a national banking association duly formed, validly existing
      and in good standing under the laws of the United States of America and is
      duly
      authorized and qualified to transact any and all business contemplated by this
      Agreement to be conducted by the Master Servicer;

     

    (ii) The
      Master Servicer has the full power and authority to conduct its business as
      presently conducted by it and to execute, deliver and perform, and to enter
      into
      and consummate, all transactions contemplated by this Agreement. The Master
      Servicer has duly authorized the execution, delivery and performance of this
      Agreement, has duly executed and delivered this Agreement, and this Agreement,
      assuming due authorization, execution and delivery by the other parties hereto,
      constitutes a legal, valid and binding obligation of the Master Servicer,
      enforceable against it in accordance with its terms except as the enforceability
      thereof may be limited by bankruptcy, insolvency, reorganization or similar
      laws
      affecting the enforcement of creditors’ rights generally and by general
      principles of equity;

     

    (iii) The
      execution and delivery of this Agreement by the Master Servicer, the
      consummation by the Master Servicer of any other of the transactions herein
      contemplated, and the fulfillment of or compliance with the terms hereof are
      in
      the ordinary course of business of the Master Servicer and will not (A) result
      in a breach of any term or provision of the charter and by-laws of the Master
      Servicer or (B) conflict with, result in a breach, violation or acceleration
      of,
      or result in a default under, the terms of any other material agreement or
      instrument to which the Master Servicer is a party or by which it may be bound,
      or any statute, order or regulation applicable to the Master Servicer of any
      court, regulatory body, administrative agency or governmental body having
      jurisdiction over the Master Servicer; and the Master Servicer is not a party
      to, bound by, or in breach or violation of any indenture or other agreement
      or
      instrument, or subject to or in violation of any statute, order or regulation
      of
      any court, regulatory body, administrative agency or governmental body having
      jurisdiction over it, which materially and adversely affects or, to the Master
      Servicer’s knowledge, would in the future materially and adversely affect, (x)
      the ability of the Master Servicer to perform its obligations under this
      Agreement or (y) the business, operations, financial condition, properties
      or
      assets of the Master Servicer taken as a whole;

     

    (iv) The
      Master Servicer does not believe, nor does it have any reason or cause to
      believe, that it cannot perform each and every covenant made by it and contained
      in this Agreement;

     

    
      
        
        

      

      
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    (v) No
      litigation is pending against the Master Servicer that would materially and
      adversely affect the execution, delivery or enforceability of this Agreement
      or
      the ability of the Master Servicer to perform any of its other obligations
      hereunder in accordance with the terms hereof;

     

    (vi) There
      are
      no actions or proceedings against, or investigations known to it of, the Master
      Servicer before any court, administrative or other tribunal (A) that might
      prohibit its entering into this Agreement, (B) seeking to prevent the
      consummation of the transactions contemplated by this Agreement or (C) that
      might prohibit or materially and adversely affect the performance by the Master
      Servicer of its obligations under, or validity or enforceability of, this
      Agreement;

     

    (vii) No
      consent, approval, authorization or order of any court or governmental agency
      or
      body is required for the execution, delivery and performance by the Master
      Servicer of, or compliance by the Master Servicer with, this Agreement or the
      consummation by it of the transactions contemplated by this Agreement, except
      for such consents, approvals, authorizations or orders, if any, that have been
      obtained prior to the Closing Date; and

     

    (viii) There
      are
      no affiliations, relationships or transactions relating to the Master Servicer
      of a type that are described under Item 1119 of Regulation AB with DBNTC, the
      Depositor, the Sponsor, the Servicers, the Credit Risk Manager, the Swap
      Provider or the Trustee.

     

    It
      is
      understood and agreed that the representations, warranties and covenants set
      forth in this Section 2.04 shall survive the resignation or termination of
      the
      parties hereto and the termination of this Agreement and shall inure to the
      benefit of the Trustee, the Depositor and the Certificateholders.

     

    SECTION
      2.05. Representations,
      Warranties and Covenants of Ocwen and GMAC.

     

    (a) Ocwen
      hereby represents, warrants and covenants to the Master Servicer, the Securities
      Administrator, the Depositor and the Trustee, for the benefit of each of such
      Persons and the Certificateholders that as of the Closing Date or as of such
      date specifically provided herein:

     

    (i) Ocwen
      is
      a limited liability company duly organized and validly existing under the laws
      of the jurisdiction of its formation, and is duly authorized and qualified
      to
      transact any and all business contemplated by this Agreement to be conducted
      by
      Ocwen in any state in which a Mortgaged Property related to an Ocwen Mortgage
      Loan is located or is otherwise not required under applicable law to effect
      such
      qualification and, in any event, is in compliance with the doing business laws
      of any such State, to the extent necessary to ensure its ability to enforce
      each
      Mortgage Loan and to service the Ocwen Mortgage Loans in accordance with the
      terms of this Agreement;

     

    (ii) Ocwen
      has
      the full power and authority to conduct its business as presently conducted
      by
      it and to execute, deliver and perform, and to enter into and consummate, all
      transactions contemplated by this Agreement. Ocwen has duly authorized the
      execution, delivery and performance of this Agreement, has duly executed and
      delivered this Agreement, and this Agreement, assuming due authorization,
      execution and delivery by the other parties hereto, constitutes a legal, valid
      and binding obligation of Ocwen, enforceable against it in accordance with
      its
      terms, except as the enforceability thereof may be limited by bankruptcy,
      insolvency, reorganization or similar laws affecting the enforcement of
      creditors’ rights generally and by general principles of equity;

     

    
      
        
        

      

      
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    (iii) The
      execution and delivery of this Agreement by Ocwen, the servicing of the Ocwen
      Mortgage Loans by Ocwen hereunder, the consummation by Ocwen of any other of
      the
      transactions herein contemplated, and the fulfillment of or compliance with
      the
      terms hereof are in the ordinary course of business of Ocwen and will not (A)
      result in a breach of any term or provision of Ocwen’s formation documents or
      (B) conflict with, result in a breach, violation or acceleration of, or result
      in a default under, the terms of any other material agreement or instrument
      to
      which Ocwen is a party or by which it may be bound, or any statute, order or
      regulation applicable to Ocwen of any court, regulatory body, administrative
      agency or governmental body having jurisdiction over Ocwen; and Ocwen is not
      a
      party to, bound by, or in breach or violation of any indenture or other
      agreement or instrument, or subject to or in violation of any statute, order
      or
      regulation of any court, regulatory body, administrative agency or governmental
      body having jurisdiction over it, which materially and adversely affects or,
      to
      Ocwen's knowledge, would in the future materially and adversely affect, (x)
      the
      ability of Ocwen to perform its obligations under this Agreement, (y) the
      business, operations, financial condition, properties or assets of Ocwen taken
      as a whole or (z) the legality, validity or enforceability of this
      Agreement;

     

    (iv) Ocwen
      does not believe, nor does it have any reason or cause to believe, that it
      cannot perform each and every covenant made by it and contained in this
      Agreement;

     

    (v) No
      litigation is pending against Ocwen that would materially and adversely affect
      the execution, delivery or enforceability of this Agreement or the ability
      of
      Ocwen to service the Ocwen Mortgage Loans or to perform any of its other
      obligations hereunder in accordance with the terms hereof;

     

    (vi) There
      are
      no actions or proceedings against, or investigations known to it of, Ocwen
      before any court, administrative or other tribunal (A) that might prohibit
      its
      entering into this Agreement, (B) seeking to prevent the consummation of the
      transactions contemplated by this Agreement or (C) that might prohibit or
      materially and adversely affect the performance by Ocwen of its obligations
      under, or the validity or enforceability of, this Agreement;

     

    (vii) No
      consent, approval, authorization or order of any court or governmental agency
      or
      body is required for the execution, delivery and performance by Ocwen of, or
      compliance by Ocwen with, this Agreement or the consummation by it of the
      transactions contemplated by this Agreement, except for such consents,
      approvals, authorizations or orders, if any, that have been obtained prior
      to
      the Closing Date;

     

    
      
        
        

      

      
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    (viii) Ocwen
      has
      fully furnished and will continue to fully furnish, in accordance with the
      Fair
      Credit Reporting Act and its implementing regulations, accurate and complete
      information (e.g., favorable and unfavorable) on its borrower credit files
      to
      Equifax, Experian and Trans Union Credit Information Company or their successors
      on a monthly basis; 

     

    (ix) Ocwen
      is
      a member of MERS in good standing, and will comply in all material respects
      with
      the rules and procedures of MERS in connection with the servicing of the Ocwen
      Mortgage Loans that are registered with MERS; and 

     

    (x) Ocwen
      will not waive any Prepayment Charge related to an Ocwen Mortgage Loan other
      than in accordance with the standard set forth in Section 3.01.

     

    (b) GMAC
      hereby represents, warrants and covenants to the Master Servicer, the Securities
      Administrator, the Depositor and the Trustee, for the benefit of each of such
      Persons and the Certificateholders that as of the Closing Date or as of such
      date specifically provided herein:

     

    (i) GMAC
      is a
      limited liability company duly organized and validly existing under the laws
      of
      the jurisdiction of its formation, and is duly authorized and qualified to
      transact any and all business contemplated by this Agreement to be conducted
      by
      GMAC in any state in which a Mortgaged Property related to a GMAC Mortgage
      Loan
      is located or is otherwise not required under applicable law to effect such
      qualification and, in any event, is in compliance with the doing business laws
      of any such State, to the extent necessary to ensure its ability to enforce
      each
      GMAC Mortgage Loan and to service the Mortgage Loans in accordance with the
      terms of this Agreement;

     

    (ii) GMAC
      has
      the full power and authority to conduct its business as presently conducted
      by
      it and to execute, deliver and perform, and to enter into and consummate, all
      transactions contemplated by this Agreement. GMAC has duly authorized the
      execution, delivery and performance of this Agreement, has duly executed and
      delivered this Agreement, and this Agreement, assuming due authorization,
      execution and delivery by the other parties hereto, constitutes a legal, valid
      and binding obligation of GMAC, enforceable against it in accordance with its
      terms, except as the enforceability thereof may be limited by bankruptcy,
      insolvency, reorganization or similar laws affecting the enforcement of
      creditors’ rights generally and by general principles of equity;

     

    (iii) The
      execution and delivery of this Agreement by GMAC, the servicing of the GMAC
      Mortgage Loans by GMAC hereunder, the consummation by GMAC of any other of
      the
      transactions herein contemplated, and the fulfillment of or compliance with
      the
      terms hereof are in the ordinary course of business of GMAC and will not (A)
      result in a breach of any term or provision of GMAC’s formation documents or (B)
      conflict with, result in a breach, violation or acceleration of, or result
      in a
      default under, the terms of any other material agreement or instrument to which
      GMAC is a party or by which it may be bound, or any statute, order or regulation
      applicable to GMAC of any court, regulatory body, administrative agency or
      governmental body having jurisdiction over GMAC; and GMAC is not a party to,
      bound by, or in breach or violation of any indenture or other agreement or
      instrument, or subject to or in violation of any statute, order or regulation
      of
      any court, regulatory body, administrative agency or governmental body having
      jurisdiction over it, which materially and adversely affects or, to GMAC's
      knowledge, would in the future materially and adversely affect, (x) the ability
      of GMAC to perform its obligations under this Agreement, (y) the business,
      operations, financial condition, properties or assets of GMAC taken as a whole
      or (z) the legality, validity or enforceability of this Agreement;

     

    
      
        
        

      

      
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    (iv) GMAC
      does
      not believe, nor does it have any reason or cause to believe, that it cannot
      perform each and every covenant made by it and contained in this
      Agreement;

     

    (v) No
      litigation is pending against GMAC that would materially and adversely affect
      the execution, delivery or enforceability of this Agreement or the ability
      of
      GMAC to service the GMAC Mortgage Loans or to perform any of its other
      obligations hereunder in accordance with the terms hereof;

     

    (vi) There
      are
      no actions or proceedings against, or investigations known to it of, GMAC before
      any court, administrative or other tribunal (A) that might prohibit its entering
      into this Agreement, (B) seeking to prevent the consummation of the transactions
      contemplated by this Agreement or (C) that might prohibit or materially and
      adversely affect the performance by GMAC of its obligations under, or the
      validity or enforceability of, this Agreement;

     

    (vii) No
      consent, approval, authorization or order of any court or governmental agency
      or
      body is required for the execution, delivery and performance by GMAC of, or
      compliance by GMAC with, this Agreement or the consummation by it of the
      transactions contemplated by this Agreement, except for such consents,
      approvals, authorizations or orders, if any, that have been obtained prior
      to
      the Closing Date;

     

    (viii) GMAC
      has
      fully furnished and will continue to fully furnish, in accordance with the
      Fair
      Credit Reporting Act and its implementing regulations, accurate and complete
      information (e.g., favorable and unfavorable) on its borrower credit files
      to
      Equifax, Experian and Trans Union Credit Information Company or their successors
      on a monthly basis; 

     

    (ix) GMAC
      is a
      member of MERS in good standing, and will comply in all material respects with
      the rules and procedures of MERS in connection with the servicing of the
      Mortgage Loans that are registered with MERS; and 

     

    
      
        
        

      

      
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    (x) GMAC
      will
      not waive any Prepayment Charge related to a GMAC Mortgage Loan other than
      in
      accordance with the standard set forth in Section 3.01.

     

    (c) Notwithstanding
      anything to the contrary contained in this Agreement, if the covenant of the
      related Servicer set forth in Section 2.05(a)(x) or 2.05(b)(x) above is
      breached, the related Servicer will pay the amount of such waived Prepayment
      Charge, from its own funds without any right of reimbursement, for the benefit
      of the Holders of the Class P Certificates, by depositing such amount into
      the
      Collection Account within 90 days of the earlier of discovery by the related
      Servicer or receipt of notice by the related Servicer of such breach; provided,
      however, the Servicers shall not have any obligation to pay the amount of any
      uncollected Prepayment Charge under this Section 2.05 if the related Servicer
      did not have a copy of the related Mortgage Note, such Servicer requested a
      copy
      of the same from the related Custodian in accordance with the terms of the
      related Custodial Agreement and such Custodian failed to provide such copy
      within the time frame set forth in the related Custodial Agreement. Furthermore,
      notwithstanding any other provisions of this Agreement, any payments made by
      the
      Servicers in respect of any waived Prepayment Charges pursuant to this paragraph
      shall be deemed to be paid outside of the Trust Fund. 

     

    (d) It
      is
      understood and agreed that the representations, warranties and covenants set
      forth in this Section 2.05 shall survive the resignation or termination of
      the
      parties hereto, the termination of this Agreement and the delivery of the
      Mortgage Files to the related Custodian and shall inure to the benefit of the
      Trustee, the Master Servicer, the Securities Administrator, the Servicers,
      the
      Depositor, the Certificateholders. Upon discovery by any such Person, the NIMS
      Insurer or the Servicer of a breach of any of the foregoing representations,
      warranties and covenants which materially and adversely affects the value of
      any
      Mortgage Loan, Prepayment Charge or the interests therein of the
      Certificateholders, the party discovering such breach shall give prompt written
      notice (but in no event later than two (2) Business Days following such
      discovery) to the Trustee. Subject to Section 8.01, unless such breach shall
      not
      be susceptible of cure within ninety (90) days, the obligation of the related
      Servicer set forth in Section 2.03(e) to cure breaches shall constitute the
      sole
      remedy against the related Servicer available to the Certificateholders, the
      Depositor or the Trustee on behalf of the Certificateholders respecting a breach
      of the representations, warranties and covenants contained in this Section
      2.05.

     

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

     

    The
      Trustee acknowledges the assignment to it of the Mortgage Loans and the delivery
      to the applicable Custodian on its behalf of the Mortgage Loan Documents,
      subject to the provisions of Section 2.01 and Section 2.02 hereof and Section
      2
      of the related Custodial Agreement, together with the assignment to it of all
      other assets included in REMIC I, the receipt of which is hereby acknowledged.
      The interests evidenced by the Class R-I Interest, together with the REMIC
      I
      Regular Interests, constitute the entire beneficial ownership interest in REMIC
      I. The rights of the Holders of the Class R-I Interest and REMIC I (as holder
      of
      the REMIC I Regular Interests) to receive distributions from the proceeds of
      REMIC I in respect of the Class R-I Interest and the REMIC I Regular Interests,
      respectively, and all ownership interests evidenced or constituted by the Class
      R-I Interest and the REMIC I Regular Interests, shall be as set forth in this
      Agreement.

     

    
      
        
        

      

      
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    SECTION
      2.07. Conveyance
      of the REMIC I Regular Interests; Acceptance of REMIC II, REMIC III and REMIC
      IV
      by the Trustee.

     

    The
      Depositor, concurrently with the execution and delivery hereof, does hereby
      transfer, assign, set over and otherwise convey to the Trustee, without recourse
      all the right, title and interest of the Depositor in and to the REMIC I Regular
      Interests for the benefit of the Class R-II Interest and REMIC II (as holder
      of
      the REMIC I Regular Interests). The Trustee acknowledges receipt of the REMIC
      I
      Regular Interests and declares that it holds and will hold the same in trust
      for
      the exclusive use and benefit of all present and future Holders of the Class
      R-II Interest and REMIC II (as holder of the REMIC I Regular Interests). The
      rights of the Holder of the Class R-II Interest and REMIC II (as holder of
      the
      REMIC I Regular Interests) to receive distributions from the proceeds of REMIC
      II in respect of the Class R-II Interest and the REMIC II Regular Interests,
      respectively, and all ownership interests evidenced or constituted by the Class
      R-II Interest and the REMIC II Regular Interests, shall be as set forth in
      this
      Agreement. The Class R-II Interest and the REMIC II Regular Interests shall
      constitute the entire beneficial ownership interest in REMIC II. The Trustee
      acknowledges receipt of the REMIC II Regular Interests and declares that it
      holds and will hold the same in trust for the exclusive use and benefit of
      all
      present and future Holders of the Class R-III Interest and REMIC III (as holder
      of the REMIC II Regular Interests). The Trustee acknowledges receipt of the
      REMIC II Regular Interests and declares that it holds and will hold the same
      in
      trust for the exclusive use and benefit of all present and future Holders of
      the
      Class R-III Interest and REMIC III (as holder of the REMIC II Regular
      Interests). The rights of the Holder of the Class R-III Interest and REMIC
      III
      (as holder of the REMIC II Regular Interests) to receive distributions from
      the
      proceeds of REMIC III in respect of the Class R-III Interest and the REMIC
      III
      Regular Interests, respectively, and all ownership interests evidenced or
      constituted by the Class R-III Interest and the REMIC III Regular Interests,
      shall be as set forth in this Agreement. The Class R-III Interest and the REMIC
      III Regular Interests shall constitute the entire beneficial ownership interest
      in REMIC III. The Trustee acknowledges receipt of the REMIC III Regular
      Interests and declares that it holds and will hold the same in trust for the
      exclusive use and benefit of all present and future Holders of the Class R-IV
      Interest and REMIC IV (as holder of the REMIC III Regular Interests). The rights
      of the Holder of the Class R-IV Interest and REMIC IV (as holder of the REMIC
      III Regular Interests) to receive distributions from the proceeds of REMIC
      IV in
      respect of the Class R-IV Interest, the Class IO Interest and the Regular
      Certificates, respectively, and all ownership interests evidenced or constituted
      by the Class R-IV Interest, the Class IO Interest and the Regular Certificates,
      shall be as set forth in this Agreement. The Class R-IV Interest, the Class
      IO
      Interest and the Regular Certificates shall constitute the entire beneficial
      ownership interest in REMIC IV.

     

    SECTION
      2.08. Issuance
      of the Residual Certificates.

     

    The
      Trustee acknowledges the assignment to it of the REMIC I Regular Interests
      and,
      concurrently therewith and in exchange therefor, pursuant to the written request
      of the Depositor executed by an officer of the Depositor, the Securities
      Administrator has executed and authenticated and the Trustee has delivered
      to or
      upon the order of the Depositor, the Class R Certificates in authorized
      denominations. The Class R Certificates evidence ownership in the Class R-I
      Interest, the Class R-II Interest, the Class R-III Interest and the Class R-IV
      Interest.

     

    
      
        
        

      

      
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    SECTION
      2.09. Conveyance
      of Subsequent Mortgage Loans.

     

    (a) Subject
      to the conditions set forth in paragraph (b) below in consideration of the
      Securities Administrator’s delivery, on behalf of the Trustee, on the Subsequent
      Transfer Dates to or upon the order of the Depositor of all or a portion of
      the
      balance of funds in the Pre-Funding Account, the Depositor shall on any
      Subsequent Transfer Date sell, transfer, assign, set over and convey without
      recourse to the Trust Fund 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 Subsequent Mortgage Loans identified on the Mortgage Loan Schedule attached
      to the related Subsequent Transfer Instrument delivered by the Depositor on
      such
      Subsequent Transfer Date, (ii) all interest accruing thereon on and after the
      related Cut-off Date and all collections in respect of interest and principal
      due after the related Cut-off Date and (iii) all items with respect to such
      Subsequent Mortgage Loans to be delivered pursuant to Section 2.01 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 Subsequent Mortgage Loans prior to the related
      Cut-off Date. The transfer to the Trustee for deposit in the mortgage pool
      by
      the Depositor of the Subsequent Mortgage Loans identified on the Mortgage Loan
      Schedule shall be absolute and is intended by the Depositor, the Servicer,
      the
      Trustee and the Certificateholders to constitute and to be treated as a sale
      of
      the Subsequent Mortgage Loans by the Depositor to the Trust Fund. The related
      Mortgage File for each Subsequent Mortgage Loan shall be delivered to the
      Trustee (or the Custodian on its behalf) at least three (3) Business Days prior
      to the related Subsequent Transfer Date.

     

    The
      purchase price paid on behalf of the Trustee from amounts released from the
      Group I Pre-Funding Sub-Account or the Group II Pre-Funding Sub-Account, as
      applicable, shall be one-hundred percent (100%) of the aggregate Stated
      Principal Balance of the related Subsequent Mortgage Loans so transferred (as
      identified on the Mortgage Loan Schedule provided by the Depositor). This
      Agreement shall constitute a fixed-price purchase contract in accordance with
      Section 860G(a)(3)(A)(ii) of the Code.

     

    (b) The
      Depositor shall transfer to the Trustee for deposit in the mortgage pool the
      Subsequent Mortgage Loans and the other property and rights related thereto
      as
      described in paragraph (a) above, and the Securities Administrator shall release
      funds from the Group I Pre-Funding Sub-Account or the Group II Pre-Funding
      Sub-Account, as applicable, 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 Trustee, the Securities Administrator, the
      Servicer and the Rating Agencies with a timely Addition Notice and shall have
      provided any information reasonably requested by the Trustee with respect to
      the
      Subsequent Mortgage Loans;

     

    (ii) the
      Depositor shall have delivered to the Trustee and the Securities Administrator
      a
      duly executed Subsequent Transfer Instrument, which shall include a Mortgage
      Loan Schedule listing the Subsequent Mortgage Loans, and the Sponsor shall
      have
      delivered a computer file acceptable to the Trustee and the Securities
      Administrator containing such Mortgage Loan Schedule to the Trustee and the
      Securities Administrator at least three (3) Business Days prior to the related
      Subsequent Transfer Date;

     

    
      
        
        

      

      
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    (iii) as
      of
      each Subsequent Transfer Date, as evidenced by delivery of the Subsequent
      Transfer Instrument, substantially in the form of Exhibit K, 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
      Fund or the Certificateholders;

     

    (v) the
      Pre-Funding Period shall not have terminated;

     

    (vi) the
      Depositor shall not have selected the Subsequent Mortgage Loans in a manner
      that
      it believed to be adverse to the interests of the
      Certificateholders;

     

    (vii) the
      Depositor shall have delivered to the Trustee (with a copy to the Securities
      Administrator) a Subsequent Transfer Instrument confirming the satisfaction
      of
      the conditions precedent specified in this Section 2.09 and, pursuant to the
      Subsequent Transfer Instrument, assigned to the Trustee without recourse for
      the
      benefit of the Certificateholders all the right, title and interest of the
      Depositor, in, to and under the Subsequent Mortgage Loan Purchase Agreement,
      to
      the extent of the Subsequent Mortgage Loans; and

     

    (viii) the
      Depositor shall have delivered to the Trustee an Opinion of Counsel addressed
      to
      the Trustee and the Rating Agencies with respect to the transfer of the
      Subsequent Mortgage Loans substantially in the form of the Opinion of Counsel
      delivered to the Trustee on the Closing Date regarding the true sale of the
      Subsequent Mortgage Loans.

     

    (c) Each
      Subsequent Mortgage Loan that has been identified and is expected to be sold
      to
      the trust on the related Subsequent Transfer Date will have the characteristics
      set forth below as of the Cut-off Date. In addition, the obligation of the
      Trust
      Fund to purchase any Subsequent Mortgage Loan that has not been identified
      on
      the Cut-off Date, but is sold to the Trust during the Pre-Funding Period, is
      subject to the satisfaction of the conditions set forth in the immediately
      preceding paragraph and the accuracy of the following representations and
      warranties with respect to each such Subsequent Mortgage Loan determined as
      of
      the applicable Subsequent Transfer Date: (i) such Subsequent Mortgage Loan
      may
      not be sixty (60) or more days delinquent as of the last day of the month
      preceding the related Cut-off Date; (ii) the servicer of each Subsequent
      Mortgage Loan will be Ocwen or GMAC; (iii) such Subsequent Mortgage Loan will
      be
      secured by a first lien; (iv) the original term to stated maturity of such
      Subsequent Mortgage Loan will not be less than and will not exceed 360 months;
      (v) the latest maturity date of any Subsequent Mortgage Loan will be no later
      than January 1, 2037; (vi) no Subsequent Mortgage Loan will have a first payment
      date occurring after February 1, 2007; (vii) such Subsequent Mortgage Loan
      will
      have a credit score of not less than approximately 546; (viii) such Subsequent
      Mortgage Loan will not have a combined loan-to-value ratio greater than 100%;
      (ix) such Subsequent Mortgage Loan will not have a principal balance greater
      than approximately $693,900; (x) if such Subsequent Mortgage Loan is an
      Adjustable Rate Mortgage Loan, it will have a Gross Margin not less than
      approximately 5.375% per annum; and (x) such Subsequent Mortgage Loan will
      have
      a Maximum Mortgage Rate not less than approximately 12.250%. 

     

    
      
        
        

      

      
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    (d) As
      of
      each related Cut-off Date, the aggregate of the Subsequent Mortgage Loans
      identified and expected to be sold to the trust on the related Subsequent
      Transfer Date, including the Subsequent Mortgage Loans that have not been
      identified on the Cut-off Date and are sold to the Trust during the Pre-Funding
      Period, will satisfy the following criteria: (i) have a weighted average Gross
      Margin of approximately 6.000% per annum; (ii) have a weighted average credit
      score greater than approximately 630; (iii) have no less than approximately
      80.00% of the Mortgaged Properties be owner occupied; (iv) have no less than
      approximately 50.00% of the Mortgaged Properties be single family detached
      or
      planned unit developments; (v) have no more than approximately 50.00% of the
      Subsequent Mortgage Loans be cash out refinance; (vi) have a weighted average
      remaining term to stated maturity of not less than approximately 348 months;
      (vii) have a weighted average combined loan-to-value ratio of not more than
      approximately 88.00%; (viii) no more than approximately 10.00% of the Subsequent
      Mortgage Loans by aggregate principal balance will be balloon loans; (ix) no
      more than approximately 75.00% of the Subsequent Mortgage Loans by aggregate
      principal balance will be concentrated in one state; (x) have a weighted average
      Maximum Mortgage Rate not less than approximately 11.000%; and (xi) be
      acceptable to the Rating Agencies.

     

    Notwithstanding
      the foregoing, any Subsequent Mortgage Loan may be rejected by any Rating Agency
      if the inclusion of any such Subsequent Mortgage Loan would adversely affect
      the
      ratings of any Class of Certificates. At least one (1) Business Day prior to
      the
      Subsequent Transfer Date, each Rating Agency shall notify the Trustee as to
      which Subsequent Mortgage Loans, if any, shall not be included in the transfer
      on the Subsequent Transfer Date; provided, however, that the Sponsor shall
      have
      delivered 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 paragraphs (c) and (d)
      above.

     

    SECTION
      2.10. Establishment
      of the Trust.

     

    The
      Depositor does hereby establish, pursuant to the further provisions of this
      Agreement and the laws of the State of New York, an express trust to be known,
      for convenience, as “ACE Securities Corp., Home Equity Loan Trust, Series
      2007-HE4” and does hereby appoint HSBC Bank USA, National Association as Trustee
      in accordance with the provisions of this Agreement.

     

    SECTION
      2.11. Purpose
      and Powers of the Trust.

     

    The
      purpose of the common law trust, as created hereunder, is to engage in the
      following activities:

     

    (a) acquire
      and hold the Mortgage Loans and the other assets of the Trust Fund and the
      proceeds therefrom;

     

    
      
        
        

      

      
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    (b) to
      issue
      the Certificates sold to the Depositor in exchange for the Mortgage
      Loans;

     

    (c) to
      make
      payments on the Certificates;

     

    (d) to
      engage
      in those activities that are necessary, suitable or convenient to accomplish
      the
      foregoing or are incidental thereto or connected therewith; and

     

    (e) subject
      to compliance with this Agreement, to engage in such other activities as may
      be
      required in connection with conservation of the Trust Fund and the making of
      distributions to the Certificateholders.

     

    The
      trust
      is hereby authorized to engage in the foregoing activities. The Trustee shall
      not cause the trust to engage in any activity other than in connection with
      the
      foregoing or other than as required or authorized by the terms of this Agreement
      (or those ancillary thereto) while any Certificate is outstanding, and this
      Section 2.11 may not be amended, without the consent of the Certificateholders
      evidencing 51% or more of the aggregate voting rights of the
      Certificates.

     

    SECTION
      2.12. Representations
      and Warranties of the Trustee.

     

    The
      Trustee hereby represents and warrants to the Sponsor and the Depositor, for
      the
      benefit of each of the Certificateholders, that as of the Closing
      Date:

     

    (a) There
      are
      no affiliations relating to the Trustee of a type that are described under
      Item
      1119(a) of Regulation AB; and

     

    (b) There
      are
      no legal proceedings pending or contemplated, including legal proceedings
      pending or contemplated by governmental authorities, against the Trustee that
      could be material to the Certificateholders.

     

    
      
        
        

      

      
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    ARTICLE
      III

    ADMINISTRATION
      AND SERVICING

    OF
      THE
      MORTGAGE LOANS; ACCOUNTS

     

    SECTION
      3.01. The
      Servicers to Act as Servicer.

     

    The
      obligations of each of Ocwen and GMAC hereunder to service and administer the
      Mortgage Loans shall be limited to the Ocwen Mortgage Loans and the GMAC
      Mortgage Loans, respectively, and with respect to the duties and obligations
      of
      each Servicer references herein to the related Mortgage Loans shall be limited
      to the Ocwen Mortgage Loans (and the related proceeds thereof and related REO
      Properties) in the case of Ocwen, and the GMAC Mortgage Loans (and the related
      proceeds thereof and related REO Properties) in the case of GMAC, and in no
      event shall either Ocwen or GMAC have any responsibility or liability with
      respect to any Mortgage Loans serviced by the other Servicer hereunder. In
      addition, from and after the Closing Date, the Countrywide Mortgage Loans will
      be serviced and administered by Countrywide pursuant to the Servicing Agreement,
      and neither Ocwen nor GMAC will have any responsibility to service or administer
      the Countrywide Mortgage Loans or have any other obligation with respect to
      the
      Countrywide Mortgage Loans (including reporting or remitting funds to the Master
      Servicer). Except as otherwise expressly stated herein, references in this
      Article III to “Servicer” shall refer to Ocwen or GMAC, as the case may be, and
      any successor thereto as a Servicer. 

     

    From
      and
      after the Closing Date, Ocwen and GMAC shall service and administer the related
      Mortgage Loans on behalf of the Trust Fund and in the best interests of and
      for
      the benefit of the Certificateholders (as determined by the related Servicer
      in
      its reasonable judgment) in accordance with the terms of this Agreement and
      the
      respective Mortgage Loans and all applicable law and regulations and, to the
      extent consistent with such terms, in the same manner in which it services
      and
      administers similar mortgage loans for its own portfolio, giving due
      consideration to customary and usual standards of practice of prudent mortgage
      lenders and loan servicers administering similar mortgage loans but without
      regard to:

     

    (i) any
      relationship that the related Servicer or any Affiliate of the related Servicer
      may have with the related Mortgagor;

     

    (ii) the
      ownership of any Certificate by the related Servicer or any Affiliate of the
      Servicer;

     

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

     

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

     

    To
      the
      extent consistent with the foregoing, the Servicers shall also seek to maximize
      the timely and complete recovery of principal and interest on the related
      Mortgage Notes and shall waive (or permit a Sub-Servicer to waive) a Prepayment
      Charge only under the following circumstances: (i) such waiver is standard
      and
      customary in servicing similar Mortgage Loans and such waiver is related to
      a
      default or reasonably foreseeable default and would, in the reasonable judgment
      of the related Servicer, maximize recovery of total proceeds taking into account
      the value of such Prepayment Charge and the related Mortgage Loan and, if such
      waiver is made in connection with a refinancing of the related Mortgage Loan,
      such refinancing is related to a default or a reasonably foreseeable default,
      (ii) such Prepayment Charge is unenforceable in accordance with applicable
      law
      or the collection of such related Prepayment Charge would otherwise violate
      applicable law or (iii) the collection of such Prepayment Charge would be
      considered “predatory” pursuant to written guidance published or issued by any
      applicable federal, state or local regulatory authority acting in its official
      capacity and having jurisdiction over such matters. In addition, the Servicers
      shall not impose a Prepayment Charge in any instance when the related Mortgage
      Loan is accelerated or where the Mortgagor has made a Principal Prepayment
      in
      full in connection with the workout of a delinquent Mortgage Loan or due to
      a
      default by the Mortgagor. Notwithstanding any provision in this Agreement to
      the
      contrary, in the event the Prepayment Charge payable under the terms of the
      Mortgage Note is less than the amount of the Prepayment Charge set forth in
      the
      Prepayment Charge Schedule or other information provided to the related
      Servicer, neither the related Servicer nor the Master Servicer shall have any
      liability or obligation with respect to such difference (including any
      obligation to recalculate any Prepayment Charges), and in addition shall not
      have any liability or obligation to pay the amount of any uncollected Prepayment
      Charge if the failure to collect such amount is the direct result of inaccurate
      or incomplete information on the Prepayment Charge Schedule.

     

    
      
        
        

      

      
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    In
      the
      event any Servicer waives a Prepayment Charge in connection with clauses (ii)
      or
      (iii) of the preceding paragraph, the related Servicer shall provide a written
      explanation of such Servicer’s determination to the Master Servicer, and the
      Master Servicer shall provide a copy of such writing to the Sponsor and the
      Depositor. 

     

    Subject
      only to the above-described servicing standards (the “Accepted Servicing
      Practices”) and the terms of this Agreement and of the related Mortgage Loans,
      each Servicer shall have full power and authority, to do or cause to be done
      any
      and all things in connection with such servicing and administration which it
      may
      deem necessary or desirable with the goal of maximizing proceeds of the related
      Mortgage Loan. Without limiting the generality of the foregoing, each Servicer
      in its own name is hereby authorized and empowered by the Trustee when the
      related Servicer believes it appropriate in its best judgment, to execute and
      deliver, on behalf of the Trust Fund, the Certificateholders and the Trustee
      or
      any of them, and upon written notice to the Trustee, any and all instruments
      of
      satisfaction or cancellation, or of partial or full release or discharge or
      subordination, and all other comparable instruments, with respect to the related
      Mortgage Loans and the related Mortgaged Properties and to institute foreclosure
      proceedings or obtain a deed-in-lieu of foreclosure so as to convert the
      ownership of such properties, and to hold or cause to be held title to such
      properties, on behalf of the Trustee, for the benefit of the Trust Fund and
      the
      Certificateholders. The Servicers shall service and administer the related
      Mortgage Loans in accordance with applicable state and federal law and shall
      provide to the Mortgagors any reports required to be provided to them thereby.
      The Servicers shall also comply in the performance of this Agreement with all
      reasonable rules and requirements of each insurer under any standard hazard
      insurance policy. Subject to Section 3.14, the Trustee shall execute, at the
      written request of any Servicer, and furnish to the related Servicer a power
      of
      attorney in the form of Exhibit D hereto and other documents necessary or
      appropriate to enable the related Servicer to carry out its servicing and
      administrative duties hereunder and furnished to the Trustee by the related
      Servicer, and the Trustee shall not be liable for the actions of the related
      Servicer under such powers of attorney and shall be indemnified by such Servicer
      for any cost, liability or expense incurred by the Trustee in connection with
      the related Servicer’s use or misuse of any such power of attorney.

     

    
      
        
        

      

      
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    Each
      Servicer is hereby authorized and empowered in its own name or in the name
      of
      the Sub-Servicer engaged by such Servicer, when the related Servicer or the
      Sub-Servicer, as the case may be, believes it is appropriate in its best
      judgment to register any Mortgage Loan on the MERS® System, or cause the removal
      from the registration of any Mortgage Loan on the MERS® System, to execute and
      deliver, on behalf of the Trustee and the Certificateholders or any of them,
      any
      and all instruments of assignment and other comparable instruments with respect
      to such assignment or re-recording of a Mortgage in the name of MERS, solely
      as
      nominee for the Trustee and its successors and assigns. Any reasonable expenses
      incurred in connection with the actions described in the preceding sentence
      or
      as a result of MERS discontinuing or becoming unable to continue operations
      in
      connection with the MERS® System, shall be reimbursable by the Trust Fund to the
      related Servicer.

     

    In
      accordance with Accepted Servicing Practices, each Servicer shall make or cause
      to be made Servicing Advances as necessary for the purpose of effecting the
      payment of taxes and assessments on the related Mortgaged Properties, which
      Servicing Advances shall be reimbursable in the first instance from related
      collections from the related Mortgagors pursuant to Section 3.07, and
      further as provided in Section 3.09; provided, however, the Servicers shall
      only make such Servicing Advance if the related Mortgagor has not made such
      payment and if the failure to make such Servicing Advance would result in the
      loss of the related Mortgaged Property due to a tax sale or foreclosure as
      result of a tax lien; provided, however, that the Servicers shall be required
      to
      make such Servicing Advances only to the extent that such Servicing Advances,
      in
      the good faith judgment of the related Servicer, will be recoverable by such
      Servicer out of Insurance Proceeds, Liquidation Proceeds, or otherwise out
      of
      the proceeds of the related Mortgage Loan. Any cost incurred by the Servicers
      in
      effecting the payment of taxes and assessments on a Mortgaged Property shall
      not, for the purpose of calculating the Stated Principal Balance of such
      Mortgage Loan or distributions to Certificateholders, be added to the unpaid
      principal balance of the related Mortgage Loan, notwithstanding that the terms
      of such Mortgage Loan so permit. The parties to this Agreement acknowledge
      that
      Servicing Advances shall be reimbursable pursuant to Section 3.09 of this
      Agreement, and agree that no Servicing Advance shall be rejected or disallowed
      by any party unless it has been shown that such Servicing Advance was not made
      in accordance with the terms of this Agreement.
      Notwithstanding the foregoing, the parties understand and agree that, with
      respect to any Mortgage Loan or Subsequent Mortgage Loan (1) the Master Servicer
      shall not approve the reimbursement of any Servicing Advance made with respect
      to such Mortgage Loan or Subsequent Mortgage Loan prior to the Cut-off Date
      (each, a “Pre-Cut-off Date Advance”) unless and until it has received a
      Servicing Advance Schedule listing the amount of Pre-Cut-off Date Advances
      made
      in respect of such Mortgage Loan or Subsequent Mortgage Loan from (a) the
      related Servicer with respect to any Mortgage Loans or Subsequent Mortgage
      Loans
      that were transferred to such Servicer prior to the Cut-off Date and/or (b)
      the
      Depositor with respect to any Mortgage Loans that were transferred to the
      Servicers after the Cut-off Date, as applicable, (2) the aggregate Pre-Cut-off
      Date Advances reimbursable hereunder with respect to such Mortgage Loan shall
      not exceed the amount of Pre-Cut-off Date Advances for such Mortgage Loan shown
      on the Servicing Advance Schedule delivered to the Master Servicer, (3) the
      Depositor shall be deemed to have agreed with and approved the Pre-Cut-off
      Date
      Advances shown on any Servicing Advance Schedule furnished to the Master
      Servicer, and (4) the Master Servicer will have no liability to the Depositor,
      the Servicer or any other Person, including any Certificateholder, for approving
      reimbursement of related Pre-Cut-off Date Advances so long as the aggregate
      amount of such advances reimbursed hereunder does not exceed of the amount
      of
      Pre-Cut-off Date Advances for such Mortgage Loan shown on the Servicing Advance
      Schedule.

     

    
      
        
        

      

      
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    Notwithstanding
      anything in this Agreement to the contrary, the Servicers may not make any
      future advances with respect to a Mortgage Loan and the Servicers shall not
      permit any modification with respect to any related Mortgage Loan that would
      change the Mortgage Rate, reduce or increase the principal balance (except
      for
      reductions resulting from actual payments of principal) or change the final
      maturity date on such related Mortgage Loan (unless, as provided in Section
      3.06, the related Mortgagor is in default with respect to the related Mortgage
      Loan or such default is, in the judgment of the Servicer, reasonably
      foreseeable) or any modification, waiver or amendment of any term of any related
      Mortgage Loan that would both (A) effect an exchange or reissuance of such
      Mortgage Loan under Section 1001 of the Code (or final, temporary or proposed
      Treasury regulations promulgated thereunder) and (B) cause any Trust REMIC
      created hereunder to fail to qualify as a REMIC under the Code or the imposition
      of any tax on “prohibited transactions” or “contributions after the startup
      date” under the REMIC Provisions.

     

    In
      the
      event that the Mortgage Loan Documents relating to a Mortgage Loan contain
      provisions requiring the related Mortgagor to arbitrate disputes (at the option
      of the Trustee, on behalf of the Trust), the Trustee hereby authorizes the
      related Servicer to waive the Trustee’s right or option to arbitrate disputes
      and to send written notice of such waiver to the Mortgagor, although the
      Mortgagor may still require arbitration at its option.

     

    From
      and
      after the Closing Date, each Servicer will fully furnish, in accordance with
      the
      Fair Credit Reporting Act and its implementing regulations, accurate and
      complete information (e.g., favorable and unfavorable) on its borrower credit
      files to Equifax, Experian and Trans Union Credit Information Company or their
      successors on a monthly basis.

     

    SECTION
      3.02. Sub-Servicing
      Agreements Between a Servicer and Sub-Servicers.

     

    (a) Each
      Servicer may arrange for the subservicing of any Mortgage Loan by a Sub-Servicer
      pursuant to a Sub-Servicing Agreement; provided that such sub-servicing
      arrangement and the terms of the related Sub-Servicing Agreement must provide
      for the servicing of such Mortgage Loans in a manner consistent with the
      servicing arrangements contemplated hereunder and the related Servicer shall
      cause any Sub-Servicer to comply with the provisions of this Agreement as
      required by Regulation AB (including, without limitation, to provide the
      information required to be delivered under Sections 3.17, 3.18 and 3.20 hereof),
      to the same extent as if such Sub-Servicer were the related Servicer. Each
      Servicer shall be responsible for obtaining from each Sub-Servicer engaged
      by
      such Servicer and delivering to the Master Servicer any annual statement of
      compliance, assessment of compliance, attestation report and Sarbanes Oxley
      related certification as and when required to be delivered. Each Sub-Servicer
      shall be (i) authorized to transact business in the state or states where the
      related Mortgaged Properties it is to service are situated, if and to the extent
      required by applicable law to enable the Sub-Servicer to perform its obligations
      hereunder and under the Sub-Servicing Agreement and (ii) a Freddie Mac or Fannie
      Mae approved mortgage servicer. Notwithstanding the provisions of any
      Sub-Servicing Agreement, any of the provisions of this Agreement relating to
      agreements or arrangements between any Servicer or a Sub-Servicer or reference
      to actions taken through the related Servicer or otherwise, the related Servicer
      shall remain obligated and liable to the Depositor, the Trustee and the
      Certificateholders for the servicing and administration of the related Mortgage
      Loans in accordance with the provisions of this Agreement without diminution
      of
      such obligation or liability by virtue of such Sub-Servicing Agreements or
      arrangements or by virtue of indemnification from the Sub-Servicer and to the
      same extent and under the same terms and conditions as if the related Servicer
      alone were servicing and administering the related Mortgage Loans. Every
      Sub-Servicing Agreement entered into by a Servicer shall contain a provision
      giving the successor servicer the option to terminate such agreement in the
      event a successor servicer is appointed. All actions of each Sub-Servicer
      performed pursuant to the related Sub-Servicing Agreement shall be performed
      as
      an agent of the related Servicer with the same force and effect as if performed
      directly by the related Servicer.

     

    
      
        
        

      

      
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    (b) Notwithstanding
      the foregoing, the Servicers shall be entitled to outsource one or more separate
      servicing functions to a Subcontractor that does not meet the eligibility
      requirements for a Sub-Servicer, so long as such outsourcing does not constitute
      the delegation of the related Servicer’s obligation to perform all or
      substantially all of the servicing of the related Mortgage Loans to such
      Subcontractor. The related Servicer shall promptly, upon request, provide to
      the
      Master Servicer, the Trustee and the Depositor a written description (in form
      and substance reasonably satisfactory to the Master Servicer, the Trustee and
      the Depositor) of the role and function of each Subcontractor utilized by such
      Servicer, specifying (i) the identity of each such Subcontractor “participating
      in the servicing function” within the meaning of Item 1122 of Regulation AB, and
      (ii) which elements of the Servicing Criteria will be addressed in assessments
      of compliance provided by each Subcontractor identified pursuant to clause
      (i)
      of this subsection; provided, however, that the related Servicer shall not
      be
      required to provide the information in clauses (i) or (ii) of this subsection
      until such time that the applicable assessment of compliance is due pursuant
      to
      Section 3.18 of this Agreement. The use by a Servicer of any such Subcontractor
      shall not release the related Servicer from any of its obligations hereunder
      and
      such Servicer shall remain responsible hereunder for all acts and omissions
      of
      such Subcontractor as fully as if such acts and omissions were those of the
      related Servicer, and the related Servicer shall pay all fees and expenses
      of
      the Subcontractor from such Servicer’s own funds.

     

    (c) As
      a
      condition to the utilization of any Subcontractor determined to be
“participating in the servicing function” within the meaning of Item 1122 of
      Regulation AB, the Servicers shall cause any such Subcontractor used by such
      Servicer for the benefit of the Master Servicer, the Trustee and the Depositor
      to comply with the provisions of Sections 3.18 and 3.20 of this Agreement to
      the
      same extent as if such Subcontractor were the related Servicer. The Servicers
      shall be responsible for obtaining from each such Subcontractor and delivering
      to the Master Servicer, and any Depositor any assessment of compliance,
      attestation report and Sarbanes-Oxley related certification required to be
      delivered by such Subcontractor under Sections 3.18 and 3.20, in each case
      as
      and when required to be delivered.

     

    
      
        
        

      

      
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    (d) For
      purposes of this Agreement, the related Servicer shall be deemed to have
      received any collections, recoveries or payments with respect to the related
      Mortgage Loans that are received by a Sub-Servicer regardless of whether such
      payments are remitted by the Sub-Servicer to such Servicer.

     

    SECTION
      3.03. Successor
      Sub-Servicers.

     

    Any
      Sub-Servicing Agreement shall provide that the related Servicer shall be
      entitled to terminate any Sub-Servicing Agreement and to either itself directly
      service the related Mortgage Loans or enter into a Sub-Servicing Agreement
      with
      a successor Sub-Servicer which qualifies under Section 3.02. Any Sub-Servicing
      Agreement shall include the provision that such agreement may be immediately
      terminated as soon as is reasonably possible by any successor to the related
      Servicer without fee or, in the event a termination fee exists, such fee shall
      be payable by the Servicer from its own funds without reimbursement therefor,
      in
      accordance with the terms of this Agreement, in the event that the related
      Servicer (or any successor to such Servicer) shall, for any reason, no longer
      be
      the Servicer of the related Mortgage Loans (including termination due to a
      Servicer Event of Default). Each Servicer shall be entitled to enter into an
      agreement with its Sub-Servicer and Subcontractor for indemnification of the
      related Servicer or Subcontractor, as applicable, by such Sub-Servicer and
      nothing contained in this Agreement shall be deemed to limit or modify such
      indemnification.

     

    SECTION
      3.04. No
      Contractual Relationship Between Sub-Servicer, Subcontractor, Trustee, the
      NIMS
      Insurer or the Certificateholders.

     

    Any
      Sub-Servicing Agreement and any other transactions or services relating to
      the
      Mortgage Loans involving a Sub-Servicer or the Subcontractor, as applicable,
      shall be deemed to be between the Sub-Servicer or Subcontractor, as applicable,
      and the related Servicer alone and the Master Servicer, Trustee, the NIMS
      Insurer and the Certificateholders shall not be deemed parties thereto and
      shall
      have no claims, rights, obligations, duties or liabilities with respect to
      any
      Sub-Servicer or the Subcontractor except as set forth in Section
      3.05.

     

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

     

    In
      connection with the assumption of the responsibilities, duties and liabilities
      and of the authority, power and rights of the Servicer hereunder by a successor
      servicer pursuant to Section 8.02, it is understood and agreed that the
      Servicer’s rights and obligations under any Sub-Servicing Agreement then in
      force between the Servicer and a Sub-Servicer shall be assumed simultaneously
      by
      such successor servicer without act or deed on the part of such successor
      servicer; provided, however, that any successor servicer may terminate the
      Sub-Servicer.

     

    The
      Servicer shall, upon the reasonable request of the Master Servicer, but at
      its
      own expense, deliver to the assuming party documents and records relating to
      each Sub-Servicing Agreement and an accounting of amounts collected and held
      by
      it and otherwise use its best efforts to effect the orderly and efficient
      transfer of the Sub-Servicing Agreements to the assuming party.

     

    
      
        
        

      

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

     

    SECTION
      3.06. Collection
      of Certain Mortgage Loan Payments.

     

    Each
      Servicer shall make reasonable efforts to collect all payments called for under
      the terms and provisions of the related Mortgage Loans, and shall, to the extent
      such procedures shall be consistent with this Agreement and Accepted Servicing
      Practices, follow such collection procedures as it would follow with respect
      to
      mortgage loans comparable to the Mortgage Loans and held for its own account.
      Consistent with the foregoing, a Servicer may in its discretion (i) waive any
      late payment charge or, if applicable, penalty interest or (ii) extend the
      due
      dates for the Monthly Payments due on a Mortgage Note related to a Mortgage
      Loan
      for a period of not greater than 180 days; provided that any extension pursuant
      to this clause shall not affect the amortization schedule of any Mortgage Loan
      for purposes of any computation hereunder. Notwithstanding the foregoing, in
      the
      event that any Mortgage Loan is in default or, in the judgment of the related
      Servicer, such default is reasonably foreseeable, the related Servicer,
      consistent with Accepted Servicing Practices may waive, modify or vary certain
      terms of such Mortgage Loan, subject to the limitations set forth herein, accept
      payment from the related Mortgagor of an amount less than the Stated Principal
      Balance in final satisfaction of such Mortgage Loan, or consent to the
      postponement of strict compliance with any such term or otherwise grant
      indulgence to any Mortgagor if in such Servicer’s determination such waiver,
      modification, postponement or indulgence is not materially adverse to the
      interests of the Certificateholders (taking into account any estimated Realized
      Loss that might result absent such action); provided, however, no servicing
      modifications may result in any of the following: any amounts added to the
      principal balance of the Mortgage Loan, or capitalized amounts added to the
      Mortgage Loan, will be required to be fully amortized over the remaining term,
      or the extended term, of the Mortgage Loan; all capitalizations are to be
      implemented in accordance with the related Servicer’s standards and may be
      implemented only by such Servicer for that purpose; the final maturity of any
      Mortgage Loan will not be extended beyond the Assumed Final Distribution Date;
      and no servicing modification with respect to a Mortgage Loan will have the
      effect of reducing the Mortgage Rate below one half of the Mortgage Rate as
      in
      effect on the Cut off Date, but not less than the Servicing Fee Rate. Further,
      the aggregate principal balance of all Mortgage Loans subject to modifications
      can be no more than five percent (5%) of the aggregate principal balance of
      the
      Mortgage Loans as of the Cut-off Date, but this limit may increase from time
      to
      time with the consent of S&P. The Servicers shall not be required to
      institute or join in litigation with respect to collection of any payment
      (whether under a Mortgage, Mortgage Note or otherwise or against any public
      or
      governmental authority with respect to a taking or condemnation) if it
      reasonably believes that enforcing the provision of the Mortgage or other
      instrument pursuant to which such payment is required is prohibited by
      applicable law.

     

    
      
        
        

      

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

     

    To
      the
      extent the terms of the Mortgage provide for Escrow payments each Servicer
      shall
      establish and maintain one or more accounts (the “Servicing Accounts”), into
      which all collections from the Mortgagors (or related advances from
      Sub-Servicers) for the payment of taxes, assessments, fire, flood, and hazard
      insurance premiums, and comparable items for the account of the Mortgagors
      (“Escrow Payments”) shall be deposited and retained. Servicing Accounts shall be
      Eligible Accounts. Each Servicer shall deposit in the clearing account in which
      it customarily deposits payments and collections on mortgage loans in connection
      with its mortgage loan servicing activities on a daily basis, and in no event
      more than one Business Day after the related Servicer’s receipt thereof, all
      Escrow Payments collected on account of the related Mortgage Loans and shall
      thereafter deposit such Escrow Payments in the Servicing Accounts, in no event
      later than the second Business Day after the deposit of good funds into the
      clearing account, and retain therein, all Escrow Payments collected on account
      of the Mortgage Loans, for the purpose of effecting the timely payment of any
      such items as required under the terms of this Agreement. Withdrawals of amounts
      from a Servicing Account may be made by a Servicer only to (i) effect timely
      payment of taxes, assessments, fire, flood, and hazard insurance premiums,
      and
      comparable items; (ii) reimburse itself out of related collections for any
      Servicing Advances made pursuant to Section 3.01 (with respect to taxes and
      assessments) and Section 3.11 (with respect to fire, flood and hazard
      insurance); (iii) refund to Mortgagors any sums as may be determined to be
      overages; (iv) for application to restore or repair the related Mortgaged
      Property in accordance with Section 3.11; (v) pay interest, if required and
      as
      described below, to Mortgagors on balances in the Servicing Account; or, only
      to
      the extent not required to be paid to the related Mortgagors, to pay itself
      interest on balances in the Servicing Account; or (vi) clear and terminate
      the
      Servicing Account at the termination of the related Servicer’s obligations and
      responsibilities in respect of the related Mortgage Loans under this Agreement
      in accordance with Article X. As part of its servicing duties, each Servicer
      shall pay to the Mortgagors interest on funds in Servicing Accounts, to the
      extent required by law and, to the extent that interest earned on funds in
      the
      Servicing Accounts is insufficient, to pay such interest from its own funds,
      without any reimbursement therefor. Notwithstanding the foregoing, the Servicers
      shall not be obligated to collect Escrow Payments if the related Mortgage Loan
      does not require such payments but the Servicer shall nevertheless be obligated
      to make Servicing Advances as provided in Section 3.01 and Section 3.11. In
      the
      event a Servicer shall deposit in the Servicing Accounts any amount not required
      to be deposited therein, it may at any time withdraw such amount from the
      Servicing Accounts, any provision to the contrary notwithstanding.

     

    To
      the
      extent that a Mortgage does not provide for Escrow Payments, the Servicers
      (i)
      shall determine whether any such payments are made by the Mortgagor in a manner
      and at a time that is necessary to avoid the loss of the Mortgaged Property
      due
      to a tax sale or the foreclosure as a result of a tax lien and (ii) shall ensure
      that all insurance required to be maintained on the Mortgaged Property pursuant
      to this Agreement is maintained. If any such payment has not been made and
      the
      related Servicer receives notice of a tax lien with respect to the Mortgage
      Loan
      being imposed, such Servicer shall, promptly and to the extent required to
      avoid
      loss of the Mortgaged Property, advance or cause to be advanced funds necessary
      to discharge such lien on the Mortgaged Property unless the related Servicer
      determines the advance to be nonrecoverable. Each Servicer assumes full
      responsibility for the payment of all such bills and shall effect payments
      of
      all such bills irrespective of the Mortgagor’s faithful performance in the
      payment of same or the making of the Escrow Payments and shall make Servicing
      Advances to effect such payments subject to its determination of
      recoverability.

     

    
      
        
        

      

      
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    SECTION
      3.08. Collection
      Accounts and Distribution Account.

     

    (a) On
      behalf
      of the Trust Fund, each Servicer shall establish and maintain one or more
“Collection Accounts”, held in trust for the benefit of the Trustee and the
      Certificateholders. On behalf of the Trust Fund, the Servicers shall deposit
      or
      cause to be deposited in the clearing account in which it customarily deposits
      payments and collections on mortgage loans in connection with its mortgage
      loan
      servicing activities on a daily basis, and in no event more than one Business
      Day after the related Servicer’s receipt thereof, and shall thereafter deposit
      in the related Collection Account, in no event later than two Business Days
      after the deposit of good funds into the clearing account, as and when received
      or as otherwise required hereunder, the following payments and collections
      received or made by it on or subsequent to the Cut-off Date other than amounts
      attributable to a Due Date on or prior to the Cut-off Date:

     

    (i) all
      payments on account of principal, including Principal Prepayments, on the
      related Mortgage Loans;

     

    (ii) all
      payments on account of interest (net of the related Servicing Fee and any
      Prepayment Interest Excess) on each related Mortgage Loan;

     

    (iii) all
      Insurance Proceeds and Liquidation Proceeds (other than proceeds collected
      in
      respect of any particular REO Property) and all Subsequent Recoveries with
      respect to the related Mortgage Loans;

     

    (iv) any
      amounts required to be deposited by the related Servicer pursuant to Section
      3.10 in connection with any losses realized on Permitted Investments with
      respect to funds held in the related Collection Account;

     

    (v) any
      amounts required to be deposited by the related Servicer pursuant to the second
      paragraph of Section 3.11(a) in respect of any blanket policy
      deductibles;

     

    (vi) any
      Purchase Price or Substitution Shortfall Amount delivered to the related
      Servicer and all proceeds (net of amounts payable or reimbursable to the related
      Servicer, the Master Servicer, the Trustee, the Custodians or the Securities
      Administrator) of Mortgage Loans purchased in accordance with Section 2.03,
      Section 3.13 or Section 10.01; and

     

    (vii) any
      Prepayment Charges collected by the related Servicer in connection with the
      Principal Prepayment of any of the related Mortgage Loans or amounts required
      to
      be deposited by the Servicer in connection with a breach of its obligations
      under Section 2.05.

     

    
      
        
        

      

      
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    The
      foregoing requirements for deposit in the related Collection Account shall
      be
      exclusive, it being understood and agreed that, without limiting the generality
      of the foregoing, Ancillary Income, Prepayment Interest Excess and payments
      in
      the nature of late payment charges, assumption fees or other similar fees need
      not be deposited by the related Servicer in the related Collection Account
      and
      may be retained by such Servicer as additional servicing compensation. In the
      event a Servicer shall deposit in the related Collection Account any amount
      not
      required to be deposited therein, it may at any time withdraw such amount from
      the related Collection Account, any provision herein to the contrary
      notwithstanding.

     

    (b) On
      behalf
      of the Trust Fund, the Securities Administrator shall establish and maintain
      one
      or more accounts (such account or accounts, the “Distribution Account”), held in
      trust for the benefit of the Trustee, the Trust Fund and the Certificateholders.
      On behalf of the Trust Fund, Countrywide shall deliver funds to the Securities
      Administrator for deposit in the Distribution Account as specified in the
      Servicing Agreement and Ocwen and GMAC shall deliver to the Securities
      Administrator in immediately available funds for deposit in the Distribution
      Account on or before 12:00 noon New York time on the Servicer Remittance Date,
      that portion of the Available Distribution Amount (calculated without regard
      to
      the references in clause (2) of the definition thereof to amounts that may
      be
      withdrawn from the Distribution Account) for the related Distribution Date
      then
      on deposit in the related Collection Account and the amount of all Prepayment
      Charges collected by the related Servicer in connection with the Principal
      Prepayment of any of the related Mortgage Loans then on deposit in the related
      Collection Account and the amount of any funds reimbursable to an Advance
      Financing Person pursuant to Section 3.26. If the balance on deposit in a
      Collection Account exceeds $100,000 as of the commencement of business on any
      Business Day and the Collection Account constitutes an Eligible Account solely
      pursuant to clause (ii) of the definition of “Eligible Account,” the related
      Servicer shall, on or before 5:00 p.m. New York time on such Business Day,
      withdraw from the related Collection Account any and all amounts payable or
      reimbursable to the Depositor, the related Servicer, the Trustee, the Master
      Servicer, the Securities Administrator or the Sponsor pursuant to Section 3.09
      and shall pay such amounts to the Persons entitled thereto or shall establish
      a
      separate Collection Account (which shall also be an Eligible Account) and
      withdraw from the existing Collection Account the amount on deposit therein
      in
      excess of $100,000 and deposit such excess in the newly created Collection
      Account.

     

    With
      respect to any remittance received by the Securities Administrator after the
      Servicer Remittance Date on which such payment was due, the Securities
      Administrator shall send written notice thereof to the related Servicer. The
      related Servicer shall pay to the Securities Administrator interest on any
      such
      late payment by the related Servicer at an annual rate equal to Prime Rate
      (as
      defined in The
      Wall Street Journal)
      plus
      one percentage point, but in no event greater than the maximum amount permitted
      by applicable law. Such interest shall be paid by the related Servicer to the
      Securities Administrator on the date such late payment is made and shall cover
      the period commencing with the day following such Servicer Remittance Date
      and
      ending with the Business Day on which such payment is made, both inclusive.
      The
      payment by a Servicer of any such interest, or the failure of the Securities
      Administrator to notify the related Servicer of such interest, shall not be
      deemed an extension of time for payment or a waiver of any Event of Default
      by
      the related Servicer.

     

    
      
        
        

      

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

     

    (d) Funds
      held in the Collection Accounts at any time may be delivered by the related
      Servicer in immediately available funds to the Securities Administrator for
      deposit in the Distribution Account. In the event any Servicer shall deliver
      to
      the Securities Administrator for deposit in the Distribution Account any amount
      not required to be deposited therein, it may at any time request that the
      Securities Administrator withdraw such amount from the Distribution Account
      and
      remit to it any such amount, any provision herein to the contrary
      notwithstanding. In no event shall the Securities Administrator incur liability
      as a result of withdrawals from the Distribution Account at the direction of
      a
      Servicer in accordance with the immediately preceding sentence. In addition,
      each Servicer shall deliver to the Securities Administrator no later than the
      Servicer Remittance Date the amounts set forth in clauses (i) through (iv)
      below:

     

    (i) any
      P&I Advances, as required pursuant to Section 5.03;

     

    (ii) any
      amounts required to be deposited pursuant to Section 3.22(d) or 3.21(f) in
      connection with any related REO Property;

     

    (iii) any
      amounts to be paid in connection with a purchase of Mortgage Loans and REO
      Properties pursuant to Section 10.01; and

     

    (iv) any
      amounts required to be deposited pursuant to Section 3.23 in connection with
      any
      Prepayment Interest Shortfalls.

     

    SECTION
      3.09. Withdrawals
      from the Collection Accounts and Distribution Account.

     

    (a) Each
      Servicer shall, from time to time, make withdrawals from the related Collection
      Account for any of the following purposes or as described in Section
      5.03:

     

    (i) to
      remit
      to the Securities Administrator for deposit in the Distribution Account the
      amounts required to be so remitted pursuant to Section 3.08(b) or permitted
      to
      be so remitted pursuant to the first sentence of Section 3.08(d);

     

    (ii) subject
      to Section 3.13(d), to reimburse itself (including any successor Servicer)
      for
      P&I Advances made by it, but only to the extent of amounts received which
      represent Late Collections (net of the related Servicing Fees) of Monthly
      Payments or rental and other income from the related REO Property on related
      Mortgage Loans with respect to which such P&I Advances were made in
      accordance with the provisions of Section 5.03;

     

    (iii) subject
      to Section 3.13(d), to pay itself any unpaid Servicing Fees and reimburse itself
      any unreimbursed Servicing Advances with respect to each related Mortgage Loan,
      but only to the extent of any Liquidation Proceeds and Insurance Proceeds
      received with respect to such related Mortgage Loan or rental or other income
      from the related REO Property;

     

    
      
        
        

      

      
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    (iv) to
      pay to
      itself as servicing compensation (in addition to the Servicing Fee or any
      portion thereof payable to the related Servicer) on the Servicer Remittance
      Date
      any interest or investment income earned on funds deposited in the related
      Collection Account;

     

    (v) to
      pay to
      itself or the Sponsor, as the case may be, with respect to each Mortgage Loan
      serviced by such Servicer that has previously been purchased or replaced
      pursuant to Section 2.03 or Section 3.13(c) all amounts received thereon not
      included in the Purchase Price or the Substitution Shortfall
      Amount;

     

    (vi) to
      reimburse itself (including any successor to such Servicer) for

     

    (A) any
      P&I Advance or Servicing Advance previously made by it which the Servicer
      has determined to be a Nonrecoverable P&I Advance or a Nonrecoverable
      Servicing Advance in accordance with the provisions of Section
      5.03;

     

    (B) any
      unpaid Servicing Fees payable to the related Servicer to the extent not
      recoverable from Liquidation Proceeds, Insurance Proceeds or other amounts
      received with respect to the related Mortgage Loan under Section 3.08(a)(iii);
      or

     

    (C) any
      P&I Advance or Servicing Advance made with respect to a delinquent Mortgage
      Loan which Mortgage Loan has been modified by the related Servicer in accordance
      with the terms of this Agreement; provided that the related Servicer shall
      only
      reimburse itself for such P&I Advances and Servicing Advances at the time of
      such modification, or as otherwise provided in this Section 3.09;

     

    (vii) to
      reimburse itself or the Depositor for expenses incurred by or reimbursable
      to
      itself or the Depositor, as the case may be, pursuant to Section 3.01 or Section
      7.03;

     

    (viii) to
      reimburse itself, the NIMS Insurer or the Trustee, as the case may be, for
      expenses reasonably incurred in respect of the breach or defect giving rise
      to
      the purchase obligation under Section 2.03 of this Agreement that were included
      in the Purchase Price of the related Mortgage Loan, including any expenses
      arising out of the enforcement of the purchase obligation;

     

    (ix) to
      pay,
      or to reimburse itself for advances in respect of, expenses incurred in
      connection with any related Mortgage Loan pursuant to Section 3.13(b);

     

    
      
        
        

      

      
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    (x) to
      pay to
      itself any Prepayment Interest Excess on the related Mortgage Loans to the
      extent not retained pursuant to Section 3.08(a)(ii);

     

    (xi) with
      respect to Ocwen, to reimburse itself pursuant to Section 5.03(b) for any
      unreimbursed P&I Advances (made from its own funds) from Amounts Held for
      Future Distribution for such Distribution Date (provided that such amounts
      must
      be replaced by Ocwen by deposit in the related Collection Account no later
      than
      the close of business on the Servicer Remittance Date immediately following
      the
      Due Period or Prepayment Period for which such amounts relate); and

     

    (xii) to
      clear
      and terminate the Collection Account pursuant to
      Section 10.01.

     

    Each
      Servicer shall keep and maintain separate accounting, on a Mortgage Loan by
      Mortgage Loan basis, for the purpose of justifying any withdrawal from the
      related Collection Account, to the extent held by or on behalf of it, pursuant
      to subclauses (ii), (iii), (v), (vi), (vii), (viii), (ix), (x) and, with respect
      to Ocwen, (xi) above.

     

    (b) The
      Securities Administrator shall, from time to time, make withdrawals from the
      Distribution Account, for any of the following purposes, without
      priority:

     

    (i) to
      make
      distributions to Certificateholders in accordance with Section
      5.01;

     

    (ii) to
      pay to
      itself, the Custodians and the Master Servicer amounts to which it is entitled
      pursuant to Section 9.05 or any other provision of this Agreement and any
      Extraordinary Trust Fund Expenses;

     

    (iii) to
      reimburse itself or the Master Servicer pursuant to Section 8.02;

     

    (iv) to
      pay
      any Net Swap Payment or Swap Termination Payment payable to the Supplemental
      Interest Trust (unless the Swap Provider is the sole Defaulting Party or the
      sole Affected Party (as defined in the Swap Agreement)) owed to the Swap
      Provider;

     

    (v) to
      pay
      any amounts in respect of taxes pursuant to Section 11.01(g)(v);

     

    (vi) to
      pay
      the Master Servicing Fee to the Master Servicer;

     

    (vii) to
      pay
      the Credit Risk Management Fee to the Credit Risk Manager; and

     

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

     

    
      
        
        

      

      
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    SECTION
      3.10. Investment
      of Funds in the Investment Accounts.

     

    (a) Each
      Servicer may direct, by means of written directions (which may be standing
      directions), any Depository Institution maintaining the related Collection
      Account to invest the funds in such Collection Account (for purposes of this
      Section 3.10, an “Investment Account”) in one or more Permitted Investments
      bearing interest or sold at a discount, and maturing, unless payable on demand,
      (i) no later than the Business Day immediately preceding the date on which
      such
      funds are required to be withdrawn from such account pursuant to this Agreement,
      if a Person other than the Securities Administrator is the obligor thereon,
      and
      (ii) no later than the date on which such funds are required to be withdrawn
      from such account pursuant to this Agreement, if the Securities Administrator
      is
      the obligor on such Permitted Investment. Amounts in the Distribution Account
      may be invested in Permitted Investments as directed in writing by the Master
      Servicer and maturing, unless payable on demand, (i) no later than the Business
      Day immediately preceding the date on which such funds are required to be
      withdrawn from such account pursuant to this Agreement, if a Person other than
      the Securities Administrator is the obligor thereon, and (ii) no later than
      the
      date on which such funds are required to be withdrawn from such account pursuant
      to this Agreement, if the Securities Administrator is the obligor thereon.
      All
      such Permitted Investments shall be held to maturity, unless payable on demand.
      Any investment of funds shall be made in the name of the Trustee (in its
      capacity as such) or in the name of a nominee of the Trustee. The Securities
      Administrator shall be entitled to sole possession over each such investment
      in
      the Distribution Account and, subject to subsection (b) below, the income
      thereon, and any certificate or other instrument evidencing any such investment
      shall be delivered directly to the Securities Administrator or its agent,
      together with any document of transfer necessary to transfer title to such
      investment to the Trustee or its nominee. In the event amounts on deposit in
      a
      Collection Account are at any time invested in a Permitted Investment payable
      on
      demand, the party with investment discretion over such Investment Account
      shall:

     

    (x) consistent
      with any notice required to be given thereunder, demand that payment thereon
      be
      made on the last day such Permitted Investment may otherwise mature hereunder
      in
      an amount equal to the lesser of (1) all amounts then payable thereunder and
      (2)
      the amount required to be withdrawn on such date; and

     

    (y) demand
      payment of all amounts due thereunder promptly upon receipt by such party of
      written notice from the Servicer that such Permitted Investment would not
      constitute a Permitted Investment in respect of funds thereafter on deposit
      in
      the Investment Account.

     

    (b) All
      income and gain realized from the investment of funds deposited in a Collection
      Account shall be for the benefit of the related Servicer and shall be subject
      to
      its withdrawal in accordance with Section 3.09. Each Servicer shall deposit
      into
      the related Collection Account the amount of any loss incurred in respect of
      any
      such Permitted Investment made with funds in such account immediately upon
      realization of such loss. All earnings and gain realized from the investment
      of
      funds deposited in the Distribution Account shall be for the benefit of the
      Master Servicer. The Master Servicer shall remit from its own funds for deposit
      into the Distribution Account the amount of any loss incurred on Permitted
      Investments in the Distribution Account.

     

    
      
        
        

      

      
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    (c) Except
      as
      otherwise expressly provided in this Agreement, if any default occurs in the
      making of a payment due under any Permitted Investment, or if a default occurs
      in any other performance required under any Permitted Investment, the Trustee
      may and, subject to Section 9.01 and Section 9.02(a)(v), shall, at the written
      direction of the Servicer or the NIMS Insurer, take such action as may be
      appropriate to enforce such payment or performance, including the institution
      and prosecution of appropriate proceedings.

     

    (d) The
      Trustee, the Master Servicer or their respective Affiliates are permitted to
      receive additional compensation that could be deemed to be in the Trustee’s or
      the Master Servicer’s economic self-interest for (i) serving as investment
      adviser, administrator, shareholder servicing agent, custodian or sub-custodian
      with respect to certain of the Permitted Investments, (ii) using Affiliates
      to
      effect transactions in certain Permitted Investments and (iii) effecting
      transactions in certain Permitted Investments. Such compensation shall not
      be
      considered an amount that is reimbursable or payable to the Trustee or the
      Master Servicer pursuant to Section 3.09 or 3.10 or otherwise payable in respect
      of Extraordinary Trust Fund Expenses. Such additional compensation shall not
      be
      an expense of the Trust Fund.

     

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

     

    (a) The
      terms
      of each Mortgage Note require the related Mortgagor to maintain fire, flood
      and
      hazard insurance policies. To the extent such policies are not maintained by
      the
      related Mortgagor, the related Servicer shall cause to be maintained for each
      Mortgaged Property fire and hazard insurance with extended coverage as is
      customary in the area where the Mortgaged Property is located in an amount
      which
      is at least equal to the lesser of the current principal balance of the related
      Mortgage Loan and the amount necessary to compensate fully for any damage or
      loss to the improvements which are a part of such property on a replacement
      cost
      basis, in
      each
      case in an amount not less than such amount as is necessary to avoid the
      application of any coinsurance clause contained in the related hazard insurance
      policy.
      Each
      Servicer shall also cause to be maintained fire and hazard insurance on each
      REO
      Property with extended coverage as is customary in the area where the Mortgaged
      Property is located in an amount which is at least equal to the lesser of (i)
      the maximum insurable value of the improvements which are a part of such
      property and (ii) the outstanding principal balance of the related Mortgage
      Loan
      (including, with respect to each second lien Mortgage Loan, the outstanding
      principal balance of the related first lien) at the time it became an REO
      Property, in each case in an amount not less than such amount as is necessary
      to
      avoid the application of any coinsurance clause contained in the related hazard
      insurance policy, in each case in an amount not less than such amount as is
      necessary to avoid the application of any coinsurance clause contained in the
      related hazard insurance policy. The Servicers will comply in the performance
      of
      this Agreement with all reasonable rules and requirements of each insurer under
      any such hazard policies. Any amounts to be collected by a Servicer under any
      such policies be applied to any related First Mortgage Loan and application
      of
      amounts to the restoration or repair of the property subject to the related
      Mortgage or amounts to be released to the Mortgagor in accordance with Accepted
      Servicing Practices, subject to the terms and conditions of the related Mortgage
      and Mortgage Note) shall be deposited into the related Collection Account,
      subject to withdrawal pursuant to Section 3.09, if received in respect of a
      Mortgage Loan, or in the REO Account, subject to withdrawal pursuant to Section
      3.22, if received in respect of an REO Property. Any cost incurred by a Servicer
      in maintaining any such insurance shall not, for the purpose of calculating
      distributions to Certificateholders, be added to the unpaid principal balance
      of
      the related Mortgage Loan, notwithstanding that the terms of such Mortgage
      Loan
      so permit. It is understood and agreed that no earthquake or other additional
      insurance is to be required of any Mortgagor other than pursuant to such
      applicable laws and regulations as shall at any time be in force and as shall
      require such additional insurance. If the Mortgaged Property or REO Property
      is
      at any time in an area identified in the Federal Register by the Federal
      Emergency Management Agency as having special flood hazards, the related
      Servicer will cause to be maintained a flood insurance policy in respect
      thereof. Such flood insurance shall be in an amount equal to the lesser of
      (i)
      the unpaid principal balance of the related Mortgage Loan and (ii) the maximum
      amount of such insurance available for the related Mortgaged Property under
      the
      national flood insurance program (assuming that the area in which such Mortgaged
      Property is located is participating in such program), in each case in an amount
      not less than such amount as is necessary to avoid the application of any
      coinsurance clause contained in the related hazard insurance
      policy.

     

    
      
        
        

      

      
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    In
      the
      event that any Servicer shall obtain and maintain a blanket policy with an
      insurer having a General Policy Rating of B:VI or better in Best’s Key Rating
      Guide or otherwise acceptable to Fannie Mae or Freddie Mac insuring against
      hazard losses on all of the related Mortgage Loans, it shall conclusively be
      deemed to have satisfied its obligations to cause fire and hazard insurance
      to
      be maintained on the Mortgaged Properties, it being understood and agreed that
      such policy may contain a deductible clause, in which case the related Servicer
      shall, in the event that there shall not have been maintained on the related
      Mortgaged Property or REO Property a policy complying with this Section 3.11,
      and there shall have been one or more losses which would have been covered
      by
      such policy, deposit into the related Collection Account from its own funds
      the
      amount not otherwise payable under the blanket policy because of such deductible
      clause. In connection with its activities as administrator and servicer of
      the
      related Mortgage Loans, each Servicer agrees to prepare and present, on behalf
      of itself, the Trustee, the Trust Fund, the Certificateholders, claims under
      any
      such blanket policy in a timely fashion in accordance with the terms of such
      policy.

     

    (b) Each
      Servicer shall keep in force during the term of this Agreement a policy or
      policies of insurance covering errors and omissions for failure in the
      performance of its respective obligations under this Agreement, which policy
      or
      policies shall be in such form and amount that would meet the requirements
      of
      Fannie Mae or Freddie Mac if it were the purchaser of the related Mortgage
      Loans, unless the related Servicer, has obtained a waiver of such requirements
      from Fannie Mae or Freddie Mac. Each Servicer shall also maintain a fidelity
      bond in the form and amount that would meet the requirements of Fannie Mae
      or
      Freddie Mac, unless the related Servicer, has obtained a waiver of such
      requirements from Fannie Mae or Freddie Mac. A Servicer shall be deemed to
      have
      complied with this provision if an Affiliate of the Servicer has such errors
      and
      omissions and fidelity bond coverage and, by the terms of such insurance policy
      or fidelity bond, the coverage afforded thereunder extends to the Servicer.
      Any
      such errors and omissions policy and fidelity bond shall by its terms not be
      cancelable without thirty (30) days’ prior written notice to the Trustee and the
      NIMS Insurer.

     

    
      
        
        

      

      
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    (c) (c) The
      related Servicer shall not take any action that would result in noncoverage
      under any applicable primary mortgage insurance policy of any loss which, but
      for the actions of such Servicer would have been covered thereunder. The related
      Servicer shall use its best efforts to keep in force and effect any applicable
      primary mortgage insurance policy and, to the extent that the related Mortgage
      Loan requires the Mortgagor to maintain such insurance, any other primary
      mortgage insurance applicable to any Mortgage Loan serviced by such Servicer.
      Except as required by applicable law or the related Mortgage Loan Documents,
      the
      related Servicer shall not cancel or refuse to renew any such primary mortgage
      insurance policy that is in effect at the date of the initial issuance of the
      related Mortgage Note and is required to be kept in force hereunder.

     

    Each
      Servicer agrees to present on behalf of the Trustee and the Certificateholders
      claims to the applicable insurer under any primary mortgage insurance policies
      and, in this regard, to take such reasonable action as shall be necessary to
      permit recovery under any primary mortgage insurance policies respecting
      defaulted Mortgage Loans. Pursuant to Section 3.08 of this Agreement, any
      amounts collected by a Servicer under any primary mortgage insurance policies
      shall be deposited in the related Collection Account, subject to withdrawal
      pursuant to Section 3.09 of this Agreement. Notwithstanding any provision to
      the
      contrary, no Servicer shall have any responsibility with respect to a primary
      mortgage insurance policy unless such Servicer has been made aware of such
      policy, as reflected on the Mortgage Loan Schedule or otherwise and have been
      provided with adequate information to administer such policy.

     

    (d) The
      Servicers need not obtain the approval of the Master Servicer prior to releasing
      any Insurance Proceeds to the Mortgagor to be applied to the restoration or
      repair of the Mortgaged Property if such release is in accordance with Accepted
      Servicing Practices. At a minimum, the Servicers shall comply with the following
      conditions in connection with any such release of Insurance Proceeds in excess
      of $10,000:

     

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

     

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

     

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

     

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

     

    Each
      Servicer shall, to the extent it has knowledge of any conveyance of any related
      Mortgaged Property by any related Mortgagor (whether by absolute conveyance
      or
      by contract of sale, and whether or not the Mortgagor remains or is to remain
      liable under the Mortgage Note and/or the Mortgage), exercise its rights to
      accelerate the maturity of such Mortgage Loan under the “due-on-sale” clause, if
      any, applicable thereto; provided, however, that the Servicers shall not
      exercise any such rights if prohibited by law from doing so. If a Servicer
      reasonably believes that it is unable under applicable law to enforce such
      “due-on-sale” clause, or if any of the other conditions set forth in the proviso
      to the preceding sentence apply, the related Servicer shall enter into an
      assumption and modification agreement from or with the person to whom such
      property has been conveyed or is proposed to be conveyed, pursuant to which
      such
      person becomes liable under the Mortgage Note and, to the extent permitted
      by
      applicable state law, the Mortgagor remains liable thereon. Each Servicer is
      also authorized to enter into a substitution of liability agreement with such
      person, pursuant to which the original Mortgagor is released from liability
      and
      such person is substituted as the Mortgagor and becomes liable under the
      Mortgage Note, provided that no such substitution shall be effective unless
      such
      person satisfies the then current underwriting criteria of the related Servicer
      for mortgage loans similar to the related Mortgage Loans. In connection with
      any
      assumption or substitution, the related Servicer shall apply such underwriting
      standards and follow such practices and procedures as shall be normal and usual
      in its general mortgage servicing activities and as it applies to other mortgage
      loans owned solely by it. The Servicers shall not take or enter into any
      assumption and modification agreement, however, unless (to the extent
      practicable in the circumstances) it shall have received confirmation, in
      writing, of the continued effectiveness of any applicable hazard insurance
      policy. Any fee collected by a Servicer in respect of an assumption or
      substitution of liability agreement will be retained by the related Servicer
      as
      additional servicing compensation. In connection with any such assumption,
      no
      material term of the Mortgage Note (including but not limited to the related
      Mortgage Rate and the amount of the Monthly Payment) may be amended or modified,
      except as otherwise required pursuant to the terms thereof. The related Servicer
      shall notify the Trustee (or the applicable Custodian) that any such
      substitution or assumption agreement has been completed by forwarding to the
      Trustee (or the applicable Custodian) the executed original of such substitution
      or assumption agreement, which document shall be added to the related Mortgage
      File and shall, for all purposes, be considered a part of such Mortgage File
      to
      the same extent as all other documents and instruments constituting a part
      thereof.

     

    
      
        
        

      

      
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    Notwithstanding
      the foregoing paragraph or any other provision of this Agreement, the related
      Servicer shall not be deemed to be in default, breach or any other violation
      of
      its obligations hereunder by reason of any assumption of a Mortgage Loan by
      operation of law or by the terms of the Mortgage Note or any assumption which
      the related Servicer may be restricted by law from preventing, for any reason
      whatever. For purposes of this Section 3.12, the term “assumption” is deemed to
      also include a sale (of the Mortgaged Property) subject to the Mortgage that
      is
      not accompanied by an assumption or substitution of liability
      agreement.

     

    SECTION
      3.13. Realization
      Upon Defaulted Mortgage Loans.

     

    (a) Each
      Servicer shall use commercially reasonable efforts, consistent with Accepted
      Servicing Practices, to foreclose upon or otherwise comparably convert the
      ownership of properties securing such of the Mortgage Loans as come into and
      continue in default and as to which no satisfactory arrangements can be made
      for
      collection of delinquent payments pursuant to Section 3.06. Each Servicer shall
      be responsible for all costs and expenses incurred by it in any such
      proceedings; provided, however, that such costs and expenses will be recoverable
      as Servicing Advances by the related Servicer as contemplated in Sections 3.09
      and 3.21. The foregoing is subject to the provision that, in any case in which
      a
      Mortgaged Property shall have suffered damage from an Uninsured Cause, the
      related Servicer shall not be required to expend its own funds toward the
      restoration of such property unless it shall determine in its discretion that
      such restoration will increase the proceeds of liquidation of the related
      Mortgage Loan after reimbursement to itself for such expenses.

     

    
      
        
        

      

      
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    (b) Notwithstanding
      the foregoing provisions of this Section 3.13 or any other provision of this
      Agreement, with respect to any Mortgage Loan as to which the a Servicer has
      received actual notice of, or has actual knowledge of, the presence of any
      toxic
      or hazardous substance on the related Mortgaged Property, the related Servicer
      shall not, on behalf of the Trust Fund, either (i) obtain title to such
      Mortgaged Property as a result of or in lieu of foreclosure or otherwise, or
      (ii) otherwise acquire possession of, or take any other action with respect
      to,
      such Mortgaged Property, if, as a result of any such action, the Trust Fund,
      the
      Trustee or the Certificateholders would be considered to hold title to, to
      be a
“mortgagee-in-possession” of, or to be an “owner” or “operator” of such
      Mortgaged Property within the meaning of the Comprehensive Environmental
      Response, Compensation and Liability Act of 1980, as amended from time to time,
      or any comparable law, unless the related Servicer has also previously
      determined, based on its reasonable judgment and a prudent report prepared
      by an
      Independent Person who regularly conducts environmental audits using customary
      industry standards, that:

     

    (1) such
      Mortgaged Property is in compliance with applicable environmental laws or,
      if
      not, that it would be in the best economic interest of the Trust Fund to take
      such actions as are necessary to bring the Mortgaged Property into compliance
      therewith; and

     

    (2) there
      are
      no circumstances present at such Mortgaged Property relating to the use,
      management or disposal of any hazardous substances, hazardous materials,
      hazardous wastes or petroleum-based materials for which investigation, testing,
      monitoring, containment, clean-up or remediation could be required under any
      federal, state or local law or regulation, or that if any such materials are
      present for which such action could be required, that it would be in the best
      economic interest of the Trust Fund to take such actions with respect to the
      affected Mortgaged Property.

     

    The
      cost
      of the environmental audit report contemplated by this Section 3.13 shall be
      advanced by the related Servicer, subject to such Servicer’s right to be
      reimbursed therefor from the related Collection Account as provided in Section
      3.09(a)(ix), such right of reimbursement being prior to the rights of
      Certificateholders to receive any amount in the related Collection Account
      received in respect of the affected Mortgage Loan or other Mortgage
      Loans.

     

    If
      the
      related Servicer determines, as described above, that it is in the best economic
      interest of the Trust Fund to take such actions as are necessary to bring any
      such Mortgaged Property into compliance with applicable environmental laws,
      or
      to take such action with respect to the containment, clean-up or remediation
      of
      hazardous substances, hazardous materials, hazardous wastes, or petroleum-based
      materials affecting any such Mortgaged Property, then such Servicer shall take
      such action as it deems to be in the best economic interest of the Trust Fund.
      The cost of any such compliance, containment, cleanup or remediation shall
      be
      advanced by the related Servicer, subject to its right to be reimbursed therefor
      from the related Collection Account as provided in Sections 3.09(a)(iii) or
      3.09(a)(ix), such right of reimbursement being prior to the rights of
      Certificateholders to receive any amount in the related Collection Account
      received in respect of the affected Mortgage Loan or other Mortgage
      Loans.

     

    
      
        
        

      

      
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    (c) Each
      of
      Ocwen and GMAC shall have the right to purchase from REMIC I any defaulted
      Mortgage Loan serviced by such Servicer that is 90 days or more delinquent,
      which such Servicer determines in good faith will otherwise become subject
      to
      foreclosure proceedings (evidence of such determination to be delivered in
      writing to the Trustee and the Master Servicer, in form and substance
      satisfactory to the Master Servicer prior to purchase), at a price equal to
      the
      Purchase Price. The Purchase Price for any Mortgage Loan purchased hereunder
      shall be deposited in the related Collection Account, and the Trustee, upon
      receipt of written certification from the related Servicer of such deposit,
      shall release or cause to be released to the related Servicer the related
      Mortgage File and the Trustee shall execute and deliver such instruments of
      transfer or assignment, in each case without recourse, representation or
      warranty, as the related Servicer shall furnish and as shall be necessary to
      vest in the related Servicer title to any Mortgage Loan released pursuant
      hereto.

     

    (d) Proceeds
      received in connection with any Final Recovery Determination, as well as any
      recovery resulting from a partial collection of Insurance Proceeds or
      Liquidation Proceeds, in respect of any Mortgage Loan, will be applied in the
      following order of priority: first, to reimburse the related Servicer for any
      related unreimbursed Servicing Advances and P&I Advances, pursuant to
      Section 3.09(a)(ii) or (a)(iii); second, to accrued and unpaid interest on
      the
      related Mortgage Loan, to the date of the Final Recovery Determination, or
      to
      the Due Date prior to the Distribution Date on which such amounts are to be
      distributed if not in connection with a Final Recovery Determination; and third,
      as a recovery of principal of the related Mortgage Loan. If the amount of the
      recovery so allocated to interest is less than the full amount of accrued and
      unpaid interest due on such Mortgage Loan, the amount of such recovery will
      be
      allocated by the related Servicer as follows: first, to unpaid Servicing Fees;
      and second, to the balance of the interest then due and owing. The portion
      of
      the recovery so allocated to unpaid Servicing Fees shall be reimbursed to the
      related Servicer pursuant to Section 3.09(a)(iii). The portion of the recovery
      allocated to interest (net of unpaid Servicing Fees) and the portion of the
      recovery allocated to principal of the related Mortgage Loan shall be applied
      as
      follows: first, to reimburse the related Servicer for any related unreimbursed
      Servicing Advances or P&I Advances in accordance with Section 3.09(a)(ii)
      and any other amounts reimbursable to the related Servicer pursuant to Section
      3.09, and second, as part of the amounts to be transferred to the Distribution
      Account in accordance with Section 3.08(b). Excess proceeds, if any, from the
      liquidation of a Liquidated Mortgage Loan will be retained by the related
      Servicer as additional servicing compensation pursuant to Section
      3.15.

     

    SECTION
      3.14. Trustee
      to Cooperate; Release of Mortgage Files.

     

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

     

    
      
        
        

      

      
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    (b) From
      time
      to time and as appropriate for the servicing or foreclosure of any Mortgage
      Loan, the Trustee shall execute such documents as shall be prepared and
      furnished to the Trustee by the related Servicer (in form reasonably acceptable
      to the Trustee) and as are necessary to the prosecution of any such proceedings.
      The applicable Custodian, on behalf of the Trustee, shall, upon the request
      of
      the related Servicer, and delivery to the applicable Custodian, on behalf of
      the
      Trustee, of two copies of a request for release signed by a Servicing Officer
      substantially in the form attached to the related Custodial Agreement (or in
      a
      mutually agreeable electronic format which will, in lieu of a signature on
      its
      face, originate from a Servicing Officer), release within five (5) Business
      Days
      the related Mortgage File held in its possession or control to the related
      Servicer. Such trust receipt shall obligate the related Servicer to return
      the
      Mortgage File to the applicable Custodian on behalf of the Trustee, when the
      need therefor by the related Servicer no longer exists unless the related
      Mortgage Loan shall be liquidated, in which case, upon receipt of a certificate
      of a Servicing Officer similar to that hereinabove specified, the Mortgage
      File
      shall be released by the applicable Custodian, on behalf of the Trustee, to
      the
      related Servicer.

     

    Notwithstanding
      the foregoing, in connection with a Principal Prepayment in full of any Mortgage
      Loan, the Master Servicer may request release of the related Mortgage File
      from
      the applicable Custodian, in accordance with the provisions of the related
      Custodial Agreement, in the event the related Servicer fails to do
      so.

     

    Upon
      written certification of a Servicing Officer, the Trustee shall execute and
      deliver to the related Servicer, any court pleadings, requests for trustee’s
      sale or other documents prepared and delivered to the Trustee and reasonably
      acceptable to it and necessary to the foreclosure or trustee’s sale in respect
      of a Mortgaged Property or to any legal action brought to obtain judgment
      against any Mortgagor on the Mortgage Note or Mortgage or to obtain a deficiency
      judgment, or to enforce any other remedies or rights provided by the Mortgage
      Note or Mortgage or otherwise available at law or in equity. Each such
      certification shall include a request that such pleadings or documents be
      executed by the Trustee and a statement as to the reason such documents or
      pleadings are required and that the execution and delivery thereof by the
      Trustee will not invalidate or otherwise affect the lien of the Mortgage, except
      for the termination of such a lien upon completion of the foreclosure or
      trustee’s sale. So long as no Servicer Event of Default shall have occurred and
      be continuing, the related Servicer shall have the right to execute any and
      all
      such court pleadings, requests and other documents as attorney-in-fact for,
      and
      on behalf of the Trustee. Notwithstanding the preceding sentence, the Trustee
      shall in no way be liable or responsible for the willful malfeasance of a
      Servicer, or for any wrongful or negligent actions taken by a Servicer, while
      such Servicer is acting in its capacity as attorney-in-fact for and on behalf
      of
      the Trustee.

     

    
      
        
        

      

      
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    SECTION
      3.15. Servicing
      Compensation.

     

    As
      compensation for its activities hereunder or under the Servicing Agreement,
      each
      Servicer shall be entitled to the Servicing Fee (or, (i) for as long as GMAC
      is
      the Servicer of the GMAC Mortgage Loans, the Servicing Fee calculated using
      the
      GMAC Servicing Fee Rate and (ii) for so long as Countrywide is the Servicer
      of
      the Countrywide Mortgage Loans, the Servicing Fee calculated using the
      Countrywide Servicing Fee Rate) with respect to each Mortgage Loan serviced
      by
      it payable solely from payments of interest in respect of such Mortgage Loan,
      subject to Section 3.23. In addition, the Servicers shall be entitled to recover
      unpaid Servicing Fees out of Insurance Proceeds or Liquidation Proceeds to
      the
      extent permitted by Section 3.09(a)(iii), Section 3.09(a)(vi) and out of amounts
      derived from the operation and sale of an REO Property to the extent permitted
      by Section 3.22. Except as permitted under Section 7.04, the right to receive
      the Servicing Fee (or, with respect to GMAC, the Servicing Fee calculated using
      the GMAC Servicing Fee Rate) may not be transferred in whole or in part except
      in connection with the transfer of all of the related Servicer’s
      responsibilities and obligations under this Agreement to the extent permitted
      herein.

     

    Additional
      servicing compensation in the form of Ancillary Income (other than Prepayment
      Charges) shall be retained by the Servicers only to the extent such fees or
      charges are received by such Servicer. The Servicers shall also be entitled
      pursuant to Section 3.09(a)(iv) to withdraw from the related Collection Account
      and pursuant to Section 3.22(b) to withdraw from any REO Account, as additional
      servicing compensation, interest or other income earned on deposits therein,
      subject to Section 3.10. In addition, the Servicers shall be entitled to retain
      or withdraw from the related Collection Account, pursuant to Section 3.09(a)(x),
      any Prepayment Interest Excess with respect to the Mortgage Loans serviced
      by it
      as additional servicing compensation. Each Servicer shall be required to pay
      all
      expenses incurred by it in connection with its servicing activities hereunder
      and shall not be entitled to reimbursement therefor except as specifically
      provided herein.

     

    SECTION
      3.16. Collection
      Account Statements.

     

    Upon
      request, not later than fifteen (15) days after each Distribution Date, the
      Servicers shall forward to the Master Servicer, the Securities Administrator,
      the NIMS Insurer and the Depositor, a statement prepared by the institution
      at
      which the related Collection Account is maintained setting forth the status
      of
      the related Collection Account as of the close of business on such Distribution
      Date and showing, for the period covered by such statement, the aggregate amount
      of deposits into and withdrawals from the related Collection Account. Copies
      of
      such statement and any similar statements provided by the Servicers shall be
      provided by the Securities Administrator to any Certificateholder and to any
      Person identified to the Securities Administrator as a prospective transferee
      of
      a Certificate, upon request at the expense of the requesting party, provided
      such statement is delivered by the related Servicer to the Securities
      Administrator.

     

    
      
        
        

      

      
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    SECTION
      3.17. Annual
      Statement as to Compliance. 

     

    (a) Each
      Servicer shall deliver (and shall cause any Sub-Servicer engaged by it to
      deliver) to the Master Servicer and to the Depositor on or before March 15
      of
      each year, commencing in March 2008, an Officer’s Certificate stating, as to the
      signer thereof, that (A) a review of such party’s activities during the
      preceding calendar year or portion thereof and of the related Servicer’s
      performance under this Agreement, or such other applicable agreement in the
      case
      of a Sub-Servicer, has been made under such officer’s supervision and (B) to the
      best of such officer’s knowledge, based on such review, such party has fulfilled
      all its obligations under this Agreement, or such other applicable agreement
      in
      the case of a Sub-Servicer, in all material respects throughout such year or
      portion thereof, or, if there has been a failure to fulfill any such obligation
      in any material respect, specifying each such failure known to such officer
      and
      the nature and status thereof. Promptly after receipt of each such Officer’s
      Certificate from the related Servicer, any Sub-Servicer engaged by such
      Servicer, the Depositor shall review such Officer’s Certificate and, if
      applicable, consult with each such party, as applicable, as to the nature of
      any
      failures by such party, in the fulfillment of any of the related Servicer’s
      obligations hereunder or, in the case of a Sub-Servicer, under such other
      applicable agreement.

     

    (b) Failure
      of a Servicer to comply timely with this Section 3.17 shall be deemed a Servicer
      Event of Default as to the related Servicer, automatically, without notice
      and
      without any cure period, and the Master Servicer may, in addition to whatever
      rights the Master Servicer may have under this Agreement and at law or in equity
      or to damages, including injunctive relief and specific performance, terminate
      all the rights and obligations of the related Servicer under this Agreement
      and
      in and to the related Mortgage Loans and the proceeds thereof without
      compensating the related Servicer for the same (other than such Servicer’s right
      to reimbursement of unreimbursed P&I Advances and Servicing Advances and
      accrued and unpaid Servicing Fees in the manner provided in this Agreement).
      This paragraph shall supersede any other provision in this Agreement or any
      other agreement to the contrary.

     

    (c) In
      the
      event a Servicer or any Sub-Servicer engaged by a Servicer is terminated,
      assigns its rights and obligations under or resigns pursuant to the terms of
      this Agreement, or any applicable agreement in the case of a Sub-Servicer,
      as
      the case may be, such party shall provide an Officer’s Certificate with respect
      to the related year pursuant to this Section 3.17(c) or to such other applicable
      agreement, as the case may be, notwithstanding any such termination, assignment
      or resignation for the related year.

     

    SECTION
      3.18. Assessments
      of Compliance and Attestation Reports.

     

    (a) By
      March
      15 of each year, commencing in March 2008, each Servicer, at its own expense,
      shall furnish, and shall cause any Servicing Function Participant engaged by
      it
      to furnish, each at its own expense, to the Master Servicer, a report on an
      assessment of compliance with the Relevant Servicing Criteria that contains
      (A)
      a statement by such party of its responsibility for assessing compliance with
      the Relevant Servicing Criteria, (B) a statement that such party used the
      Relevant Servicing Criteria to assess compliance with the Relevant Servicing
      Criteria, (C) such party’s assessment of compliance with the Relevant Servicing
      Criteria as of and for the fiscal year covered by the Form 10-K required to
      be
      filed pursuant to Section 5.06(d), including, if there has been any material
      instance of noncompliance with the Relevant Servicing Criteria, a discussion
      of
      each such failure and the nature and status thereof, and (D) a statement that
      a
      registered public accounting firm has issued an attestation report on such
      party’s assessment of compliance with the Relevant Servicing Criteria as of and
      for such period. Notwithstanding the foregoing, neither a Servicer nor any
      Servicing Function Participant engaged by a Servicer shall be required to
      deliver any assessments until March 31st in any given year so long as it has
      not
      received written confirmation from the Depositor that a Form 10-K is required
      to
      be filed in respect of the Trust for the preceding calendar year; provided
      however that, notwithstanding the foregoing, no Subcontractor will be required
      to deliver any assessments in any given year in which the Form 10-K is not
      required to be filed.

     

    
      
        
        

      

      
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    (b) By
      March
      15 of each year, commencing in March 2008, each Servicer, at its own expense,
      shall cause, and each Servicer shall cause any Servicing Function Participant
      engaged by it to cause, each at its own expense, a registered public accounting
      firm (which may also render other services to the related Servicer or such
      other
      Servicing Function Participants, as the case may be) and that is a member of
      the
      American Institute of Certified Public Accountants to furnish a report to the
      Master Servicer, to the effect that (i) it has obtained a representation
      regarding certain matters from the management of such party, which includes
      an
      assertion that such party has complied with the Relevant Servicing Criteria,
      and
      (ii) on the basis of an examination conducted by such firm in accordance with
      standards for attestation engagements issued or adopted by the PCAOB, it is
      expressing an opinion as to whether such party’s compliance with the Relevant
      Servicing Criteria was fairly stated in all material respects, or it cannot
      express an overall opinion regarding such party’s assessment of compliance with
      the Relevant Servicing Criteria. In the event that an overall opinion cannot
      be
      expressed, such registered public accounting firm shall state in such report
      why
      it was unable to express such an opinion. Such report must be available for
      general use and not contain restricted use language. Notwithstanding the
      foregoing, neither the Servicers nor any Servicing Function Participant engaged
      by a Servicer shall be required to deliver or cause the delivery of such reports
      until March 31st in any given year so long as the related Servicer has not
      received written confirmation from the Depositor that a Form 10-K is required
      to
      be filed in respect of the Trust for the preceding fiscal year; provided however
      that, notwithstanding the foregoing, no Subcontractor will be required to
      deliver any reports in any given year in which the Form 10-K is not required
      to
      be filed.

     

    (c) Failure
      of a Servicer to comply timely with this Section 3.18 shall be deemed a Servicer
      Event of Default as to the related Servicer, automatically, without notice
      and
      without any cure period, and the Master Servicer may, in addition to whatever
      rights the Master Servicer may have under this Agreement and at law or in equity
      or to damages, including injunctive relief and specific performance, terminate
      all the rights and obligations of the related Servicer under this Agreement
      and
      in and to the related Mortgage Loans and the proceeds thereof without
      compensating the related Servicer for the same (other than the related
      Servicer’s right to reimbursement of unreimbursed P&I Advances and Servicing
      Advances and accrued and unpaid Servicing Fees in the manner provided for in
      this Agreement). This paragraph shall supersede any other provision in this
      Agreement or any other agreement to the contrary.

     

    
      
        
        

      

      
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    (d) In
      the
      event a Servicer or any Servicing Function Participant engaged by a Servicer
      is
      terminated, assigns its rights and obligations under, or resigns pursuant to
      the
      terms of this Agreement, or any applicable agreement in the case of a Servicing
      Function Participant, as the case may be, such party shall provide a report
      on
      assessment of compliance with respect to the related year pursuant to this
      Section 3.18(d) or to such other applicable agreement, notwithstanding any
      such
      termination, assignment or resignation for the related year.

     

    SECTION
      3.19. [Reserved].

     

    SECTION
      3.20. Annual
      Certification; Additional Information.

     

    (a) Each
      Servicer shall and shall cause any Servicing Function Participant engaged by
      it
      to, provide to the Person who signs the Sarbanes-Oxley Certification (the
“Certifying Person”), by March 15 of each year in which the Trust is subject to
      the reporting requirements of the Exchange Act, a certification (each, a
“Back-Up Certification”), in the form attached hereto as Exhibit C, upon which
      the Certifying Person, the entity for which the Certifying Person acts as an
      officer, and such entity’s officers, directors and Affiliates (collectively with
      the Certifying Person, “Certification Parties”) can reasonably rely. The officer
      of the Master Servicer in charge of the master servicing function shall serve
      as
      the Certifying Person on behalf of the Trust. In the event a Servicer or any
      Servicing Function Participant engaged by it is terminated or resigns pursuant
      to the terms of this Agreement, or any applicable Sub-Servicing agreement,
      as
      the case may be, such party shall provide a Back-Up Certification to the
      Certifying Person pursuant to this Section 3.20 with respect to the period
      of
      time it was subject to this Agreement or any applicable Sub-Servicing Agreement,
      as the case may be.

     

    (b) Each
      Servicer shall indemnify and hold harmless the Master Servicer, the Securities
      Administrator, the Trustee, the Depositor and their respective officers,
      directors, agents and affiliates from and against any losses, damages,
      penalties, fines, forfeitures, reasonable legal fees and related costs,
      judgments and other costs and expenses arising out of or based upon a breach
      by
      the related Servicer or any of its officers, directors, agents or affiliates
      of
      its obligations under this Section 3.20 or the related Servicer’s negligence,
      bad faith or willful misconduct in connection therewith. Such indemnity shall
      survive the termination or resignation of the parties hereto or the termination
      of this Agreement. If the indemnification provided for herein is unavailable
      or
      insufficient to hold harmless the Master Servicer, the Securities Administrator,
      the Trustee and the Depositor, then the related Servicer agrees that it shall
      contribute to the amount paid or payable by the Master Servicer, the Securities
      Administrator, the Trustee and the Depositor as a result of the losses, claims,
      damages or liabilities of the Master Servicer, the Securities Administrator,
      the
      Trustee and the Depositor in such proportion as is appropriate to reflect the
      relative fault of the Master Servicer, the Securities Administrator, the Trustee
      and the Depositor on the one hand and the related Servicer on the other in
      connection with a breach of the Servicer’s obligations under this Section
      3.20.

     

    
      
        
        

      

      
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    (c) Each
      Servicer shall provide to the Master Servicer prompt notice of the occurrence
      of
      any of the following: 

     

    (i) any
      Servicer Event of Default under the terms of this Agreement, any merger,
      consolidation or sale of substantially all of the assets of the related
      Servicer, the related Servicer’s engagement of any Sub-Servicer to perform or
      assist in the performance of any of such Servicer’s obligations under this
      Agreement, any material litigation involving the related Servicer that is
      material to the Certificateholders, and to the extent disclosure is required
      under Regulation AB, any affiliation or other significant relationship between
      the related Servicer and any other Servicer, DB Home Lending LLC, the Sponsor,
      the Depositor, the Master Servicer, the Securities Administrator, the Trustee,
      the Custodians, the Cap Counterparty and the Swap Provider.

     

    (ii) If
      a
      Servicer has knowledge of the occurrence of any of the events described in
      this
      clause (ii), then no later than ten days prior to the deadline for the filing
      of
      any Distribution Report on Form 10-D in respect of the Trust, the related
      Servicer shall provide to the Master Servicer notice of the occurrence of any
      of
      the following events along with all information, data, and materials related
      thereto as may be required to be included in the related Distribution Report
      on
      Form 10-D (as specified in the provisions of Regulation AB referenced
      below):

     

    (A) any
      material modifications, extensions or waivers of pool asset terms, fees,
      penalties or payments during the distribution period or that have cumulatively
      become material over time (Item 1121(a)(11) of Regulation AB);

     

    (B) material
      breaches of pool asset representations or warranties or transaction covenants
      (Item 1121(a)(12) of Regulation AB); and

     

    (C) any
      material pool asset changes (such as, additions, substitutions or repurchases)
      relating to the Mortgage Loans serviced by the related Servicer (Item
      1121(a)(14) of Regulation AB).

     

    (d) Each
      Servicer shall provide to the Securities Administrator and Master Servicer
      such
      additional information as the Securities Administrator and the Master Servicer
      may reasonably request, including evidence of the authorization of the person
      signing any certification or statement, financial information and reports and
      of
      the fidelity bond and errors and omissions insurance policy required to be
      maintained by the related Servicer pursuant to this Agreement, and such other
      information related to the related Servicer or its performance hereunder.

     

    SECTION
      3.21. Access
      to
      Certain Documentation.

     

    Each
      Servicer shall provide to the Office of Thrift Supervision, the FDIC, and any
      other federal or state banking or insurance regulatory authority that may
      exercise authority over any Certificate Owner, access to the documentation
      regarding the related Mortgage Loans required by applicable laws and
      regulations. Such access shall be afforded without charge, but only upon
      reasonable request and during normal business hours at the offices of the
      related Servicer designated by it. Nothing in this Section 3.21 shall limit
      the
      obligation of the Servicers to comply with any applicable law prohibiting
      disclosure of information regarding the Mortgagors and the failure of a Servicer
      to provide access as provided in this Section as a result of such obligation
      shall not constitute a breach of this Section. Nothing in this Section 3.21
      shall require the Servicers to collect, create, collate or otherwise generate
      any information that it does not generate in its usual course of business.
      The
      Servicers shall not be required to make copies of or ship documents to any
      Person unless provisions have been made for the reimbursement of the costs
      thereof. 

     

    
      
        
        

      

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

     

    (a) The
      deed
      or certificate of sale of any REO Property related to a Mortgage Loan shall
      be
      taken in the name of the Trustee, or its nominee, on behalf of the Trust Fund
      and for the benefit of the Certificateholders. The related Servicer, on behalf
      of REMIC I, shall either sell any REO Property by the close of the third
      calendar year following the calendar year in which REMIC I acquires ownership
      of
      such REO Property for purposes of Section 860(a)(8) of the Code or request
      from
      the Internal Revenue Service, no later than sixty (60) days before the day
      on
      which the three-year grace period would otherwise expire, an extension of the
      three-year grace period, unless the related Servicer had delivered to the
      Trustee and the NIMS Insurer an Opinion of Counsel, addressed to the Trustee,
      the Depositor and the NIMS Insurer, to the effect that the holding by REMIC
      I of
      such REO Property subsequent to three (3) years after its acquisition will
      not
      result in the imposition on any Trust REMIC created hereunder of taxes on
“prohibited transactions” thereof, as defined in Section 860F of the Code, or
      cause any Trust REMIC hereunder to fail to qualify as a REMIC under Federal
      law
      at any time that any Certificates are outstanding. Each Servicer shall manage,
      conserve, protect and operate each REO Property for the Certificateholders
      solely for the purpose of its prompt disposition and sale in a manner which
      does
      not cause such REO Property to fail to qualify as “foreclosure property” within
      the meaning of Section 860G(a)(8) of the Code or result in the receipt by any
      Trust REMIC created hereunder of any “income from non-permitted assets” within
      the meaning of Section 860F(a)(2)(B) of the Code, or any “net income from
      foreclosure property” which is subject to taxation under the REMIC
      Provisions.

     

    (b) Each
      Servicer shall segregate and hold all funds collected and received in connection
      with the operation of any REO Property separate and apart from its own funds
      and
      general assets and shall establish and maintain with respect to REO Properties
      an account held in trust for the Trustee, on behalf of the Trust Fund and for
      the benefit of the Certificateholders (the “REO Account”), which shall be an
      Eligible Account. The Servicers shall be permitted to allow the related
      Collection Account to serve as the REO Account, subject to the maintenance
      of
      separate ledgers for each REO Property. The Servicers shall be entitled to
      retain or withdraw any interest income paid on funds deposited in the related
      REO Account.

     

    (c) The
      Servicers shall have full power and authority, subject only to the specific
      requirements and prohibitions of this Agreement, to do any and all things in
      connection with any REO Property related to a Mortgage Loan serviced by it
      as
      are consistent with the manner in which the related Servicer manages and
      operates similar property owned by it or any of its Affiliates, all on such
      terms and for such period as the related Servicer deems to be in the best
      interests of Certificateholders. In connection therewith, the related Servicer
      shall deposit, or cause to be deposited in the clearing account in which it
      customarily deposits payments and collections on mortgage loans in connection
      with its mortgage loan servicing activities on a daily basis, and in no event
      more than one (1) Business Day after the related Servicer’s receipt thereof, and
      shall thereafter deposit in the REO Account, in no event more than two (2)
      Business Days after the deposit of good funds into the clearing account, all
      revenues received by it with respect to an REO Property related to a Mortgage
      Loan serviced by it and shall withdraw therefrom funds necessary for the proper
      operation, management and maintenance of such REO Property including, without
      limitation:

     

    (i) all
      insurance premiums due and payable in respect of such REO Property;

    
       

      
        
          
          

        

        
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    (ii) all
      real
      estate taxes and assessments in respect of such REO Property that may result
      in
      the imposition of a lien thereon; and

     

    (iii) all
      costs
      and expenses necessary to maintain such REO Property.

     

    To
      the
      extent that amounts on deposit in the REO Account with respect to an REO
      Property are insufficient for the purposes set forth in clauses (i) through
      (iii) above with respect to such REO Property, the related Servicer shall
      advance from its own funds such amount as is necessary for such purposes if,
      but
      only if, the related Servicer would make such advances if such Servicer owned
      the REO Property and if in such Servicer’s judgment, the payment of such amounts
      will be recoverable from the rental or sale of the REO Property.

     

    Subject
      to compliance with applicable laws and regulations as shall at any time be
      in
      force, and notwithstanding the foregoing, the Servicers, on behalf of the Trust
      Fund, shall not:

     

    (i) enter
      into, renew or extend any New Lease with respect to any REO Property, if the
      New
      Lease by its terms will give rise to any income that does not constitute Rents
      from Real Property;

     

    (ii) permit
      any amount to be received or accrued under any New Lease other than amounts
      that
      will constitute Rents from Real Property;

     

    (iii) authorize
      or permit any construction on any REO Property, other than the completion of
      a
      building or other improvement thereon, and then only if more than ten percent
      of
      the construction of such building or other improvement was completed before
      default on the related Mortgage Loan became imminent, all within the meaning
      of
      Section 856(e)(4)(B) of the Code; or

     

    (iv) allow
      any
      Person to Directly Operate any REO Property on any date more than ninety (90)
      days after its date of acquisition by the Trust Fund;

     

    unless,
      in any such case, the related Servicer has obtained an Opinion of Counsel,
      provided to the related Servicer, the NIMS Insurer and the Trustee, to the
      effect that such action will not cause such REO Property to fail to qualify
      as
“foreclosure property” within the meaning of Section 860G(a)(8) of the Code at
      any time that it is held by REMIC I, in which case the related Servicer may
      take
      such actions as are specified in such Opinion of Counsel.

     

    
      
        
        

      

      
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    The
      Servicers may contract with any Independent Contractor for the operation and
      management of any REO Property, provided that:

     

    (i) the
      terms
      and conditions of any such contract shall not be inconsistent
      herewith;

     

    (ii) any
      such
      contract shall require, or shall be administered to require, that the
      Independent Contractor pay all costs and expenses incurred in connection with
      the operation and management of such REO Property, including those listed above
      and remit all related revenues (net of such costs and expenses) to the related
      Servicer as soon as practicable, but in no event later than thirty (30) days
      following the receipt thereof by such Independent Contractor;

     

    (iii) none
      of
      the provisions of this Section 3.22(c) relating to any such contract or to
      actions taken through any such Independent Contractor shall be deemed to relieve
      the related Servicer of any of its duties and obligations to the Trustee on
      behalf of the Trust Fund and for the benefit of the Certificateholders with
      respect to the operation and management of any such REO Property;
      and

     

    (iv) the
      related Servicer shall be obligated with respect thereto to the same extent
      as
      if it alone were performing all duties and obligations in connection with the
      operation and management of such REO Property.

     

    The
      Servicers shall be entitled to enter into any agreement with any Independent
      Contractor performing services for it related to its duties and obligations
      hereunder for indemnification of the related Servicer by such Independent
      Contractor, and nothing in this Agreement shall be deemed to limit or modify
      such indemnification. The related Servicer shall be solely liable for all fees
      owed by it to any such Independent Contractor, irrespective of whether such
      Servicer’s compensation pursuant to Section 3.15 is sufficient to pay such fees.
      Any such agreement shall include a provision that such agreement may be
      immediately terminated by any successor Servicer without fee, in the event
      the
      related Servicer shall for any reason, no longer be the Servicer of the related
      Mortgage Loans (including termination due to a Servicer Event of
      Default).

     

    (d) In
      addition to the withdrawals permitted under Section 3.22(c), the Servicers
      may
      from time to time make withdrawals from the REO Account for any REO Property:
      (i) to pay itself unpaid Servicing Fees in respect of the related Mortgage
      Loan;
      and (ii) to reimburse itself or any Sub-Servicer for unreimbursed Servicing
      Advances and Advances made in respect of such REO Property or the related
      Mortgage Loan. On the Servicer Remittance Date, the related Servicer shall
      withdraw from each REO Account and deposit into the Distribution Account in
      accordance with Section 3.08(d)(ii), for distribution on the related
      Distribution Date in accordance with Section 5.01, the income from the related
      REO Property received during the prior calendar month, net of any withdrawals
      made pursuant to Section 3.22(c) or this Section 3.22(d).

     

    (e) Subject
      to the time constraints set forth in Section 3.22(a), each REO Disposition
      shall
      be carried out by the Servicers at such price and upon such terms and conditions
      as the related Servicer shall deem necessary or advisable, as shall be normal
      and usual in accordance with Accepted Servicing Practices.

     

    
      
        
        

      

      
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    (f) The
      proceeds from the REO Disposition, net of any amount required by law to be
      remitted to the Mortgagor under the related Mortgage Loan and net of any payment
      or reimbursement to the Servicer as provided above, shall be deposited in the
      Distribution Account in accordance with Section 3.08(d)(ii) on the Servicer
      Remittance Date in the month following the receipt thereof for distribution
      on
      the related Distribution Date in accordance with Section 5.01. Any REO
      Disposition shall be for cash only (unless changes in the REMIC Provisions
      made
      subsequent to the Startup Day allow a sale for other
      consideration).

     

    (g) Each
      Servicer shall file information returns (and shall provide a certification
      of a
      Servicing Officer to the Master Servicer that such filings have been made)
      with
      respect to the receipt of mortgage interest received in a trade or business,
      reports of foreclosures and abandonments of any Mortgaged Property and
      cancellation of indebtedness income with respect to any Mortgaged Property
      as
      required by Sections 6050H, 6050J and 6050P of the Code, respectively. Such
      reports shall be in form and substance sufficient to meet the reporting
      requirements imposed by such Sections 6050H, 6050J and 6050P of the
      Code.

     

    SECTION
      3.23. Obligations
      of the Servicers in Respect of Prepayment Interest Shortfalls; Relief Act
      Interest Shortfalls.

     

    Each
      Servicer shall deliver to the Securities Administrator for deposit into the
      Distribution Account on or before 12:00 noon New York time on the Servicer
      Remittance Date from its own funds an amount equal to the lesser of (i) the
      aggregate amount of the Prepayment Interest Shortfalls attributable to Principal
      Prepayments in full on the related Mortgage Loans for the related Distribution
      Date resulting solely from voluntary Principal Prepayments received by the
      Servicer during the portion of the related Prepayment Period occurring between
      the sixteenth (16th)
      day of
      the month preceding the month in which the related Distribution Date occurs
      and
      ending on the last day of such month and (ii) the aggregate amount of the
      related Servicing Fees payable to the related Servicer on such Distribution
      Date
      with respect to the related Mortgage Loans. The Servicers shall not have the
      right to reimbursement for any amounts remitted to the Securities Administrator
      in respect of this Section 3.23. The Servicers shall not be obligated to pay
      the
      amounts set forth in this Section 3.23 with respect to shortfalls resulting
      from
      the application of the Relief Act.

     

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

     

    In
      the
      event that a shortfall in any collection on or liability with respect to any
      Mortgage Loan results from or is attributable to adjustments to Mortgage Rates,
      Monthly Payments or Stated Principal Balances that were made by the related
      Servicer in a manner not consistent with the terms of the related Mortgage
      Note
      and this Agreement, such Servicer, upon discovery or receipt of notice thereof,
      immediately shall deliver to the Securities Administrator for deposit in the
      Distribution Account from its own funds the amount of any such shortfall and
      shall indemnify and hold harmless the Trust Fund, the Trustee, the Securities
      Administrator, the Master Servicer, the Depositor and any successor servicer
      in
      respect of any such liability. Such indemnities shall survive the termination
      or
      discharge of this Agreement. Notwithstanding the foregoing, this Section 3.24
      shall not limit the ability of the related Servicer to seek recovery of any
      such
      amounts from the related Mortgagor under the terms of the related Mortgage
      Note
      and Mortgage, to the extent permitted by applicable law.

     

    
      
        
        

      

      
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    SECTION
      3.25. Reserve
      Fund.

     

    (a) No
      later
      than the Closing Date, the Securities Administrator shall establish and maintain
      a separate, segregated trust account entitled, “Reserve Fund, Wells Fargo Bank,
      National Association, in trust for the registered holders of ACE Securities
      Corp. Home Equity Loan Trust, Series 2007-HE4, Asset Backed Pass-Through
      Certificates.” On the Closing Date, the Depositor will deposit, or cause to be
      deposited, into the Reserve Fund $1,000. In addition, the amount deposited
      in
      the Reserve Fund shall be increased by any payments received by the Securities
      Administrator under the Group I Cap Contract and deposited into the Reserve
      Fund
      for the benefit of the Class A-1 Certificates and the Mezzanine Certificates
      and
      under the Group II Cap Contract and deposited in the Reserve Fund for the
      benefit of the Class A-2 Certificates and the Mezzanine
      Certificates.

     

    (b) On
      each
      Distribution Date, the Securities Administrator shall deposit into the Reserve
      Fund the amounts described in Section 5.01(c)(8)(vi), rather than distributing
      such amounts to the Class CE-1 Certificateholders pursuant to Section
      5.01(c)(8)(viii). On each such Distribution Date, the Securities Administrator
      shall hold all such amounts for the benefit of the Holders of the Class A
      Certificates and the Mezzanine Certificates and will distribute such amounts
      to
      the Holders of the Class A Certificates and the Mezzanine Certificates, in
      the
      amounts and priorities set forth in Section 5.01(c). If no Net WAC Rate
      Carryover Amounts are payable on a Distribution Date, the Securities
      Administrator shall deposit, into the Reserve Fund on behalf of the Class CE-1
      Certificateholders, from amounts otherwise distributable to the Class CE-1
      Certificateholders, an amount such that when added to other amounts already
      on
      deposit in the Reserve Fund, the aggregate amount on deposit therein is equal
      to
      $1,000.

     

    (c) The
      Reserve Fund constitutes an “outside reserve fund” within the meaning of
      Treasury Regulation § 1.860G-2(h) and is not an asset of any REMIC. It is the
      intention of the parties hereto that, for federal and state income and state
      and
      local franchise tax purposes, the Reserve Fund be disregarded as an entity
      separate from the Holder of the Class CE-1 Certificates unless and until the
      date when either (a) there is more than one Class CE-1 Certificateholder or
      (b)
      any Class of Certificates in addition to the Class CE-1 Certificates is
      recharacterized as an equity interest in the Reserve Fund for federal income
      tax
      purposes, in which case it is the intention of the parties hereto that, for
      federal and state income and state and local franchise tax purposes, the Reserve
      Fund be treated as a partnership. The Master Servicer shall not be required
      to
      prepare and file partnership tax returns in respect of such partnership unless
      it receives additional reasonable compensation (not to exceed $10,000 per year)
      for the preparation of such filings, written notification recognizing the
      creation of a partnership agreement or comparable documentation evidencing
      the
      partnership. All amounts deposited into the Reserve Fund (other than the initial
      deposit therein of $1,000 and any amounts paid to the Reserve Fund from the
      Cap
      Contracts) shall be treated as amounts distributed by REMIC IV to the Holders
      of
      the Class CE-1 Certificates. Upon the termination of the Trust Fund, or the
      payment in full of the Class A Certificates and the Mezzanine Certificates,
      all
      amounts remaining on deposit in the Reserve Fund will be released by the Trust
      Fund and distributed to the Class CE-1 Certificateholders or their designees.
      The Reserve Fund will be part of the Trust Fund but not part of any REMIC and
      any payments to the Holders of the Class A Certificates or the Mezzanine
      Certificates of Net WAC Rate Carryover Amounts will not be payments with respect
      to a “regular interest” in a REMIC within the meaning of Code Section
      860(G)(a)(1).

     

    
      
        
        

      

      
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    (d) By
      accepting a Class CE-1 Certificate, each Class CE-1 Certificateholder hereby
      agrees that the Securities Administrator will deposit into the Reserve Fund
      the
      amounts described above on each Distribution Date rather than distributing
      such
      amounts to the Class CE-1 Certificateholders. By accepting a Class CE-1
      Certificate, each Class CE-1 Certificateholder further agrees that its agreement
      to such action by the Securities Administrator is given for good and valuable
      consideration, the receipt and sufficiency of which is acknowledged by such
      acceptance.

     

    (e) At
      the
      direction of the Holders of a majority in Percentage Interest in the Class
      CE-1
      Certificates, the Securities Administrator shall direct any Depository
      Institution maintaining the Reserve Fund to invest the funds in such account
      in
      one or more Permitted Investments bearing interest or sold at a discount, and
      maturing, unless payable on demand, (i) no later than the Business Day
      immediately preceding the date on which such funds are required to be withdrawn
      from such account pursuant to this Agreement, if a Person other than the
      Securities Administrator or an Affiliate manages or advises such investment,
      and
      (ii) no later than the date on which such funds are required to be withdrawn
      from such account pursuant to this Agreement, if the Securities Administrator
      or
      an Affiliate manages or advises such investment. All income and gain earned
      upon
      such investment shall be deposited into the Reserve Fund. In no event shall
      the
      Securities Administrator be liable for any investments made pursuant to this
      clause (e). If the Holders of a majority in Percentage Interest in the Class
      CE-1 Certificates fail to provide investment instructions, funds on deposit
      in
      the Reserve Fund shall be held uninvested by the Securities Administrator
      without liability for interest or compensation.

     

    (f) For
      federal tax return and information reporting, the right of the Class A
      Certificateholders and the Mezzanine Certificateholders to receive payments
      from
      the Reserve Fund and the Supplemental Interest Trust in respect of any Net
      WAC
      Rate Carryover Amount shall be assigned a value of $12,000.

     

    (g) In
      the
      event that a Cap Contract is terminated prior to the Distribution Date in
      October 2007, the Securities Administrator, at the direction of the Depositor,
      shall use reasonable efforts to appoint a successor cap counterparty using
      any
      cap agreement termination payments paid by the Cap Counterparty. If the
      Securities Administrator is unable to locate a qualified successor cap
      counterparty within thirty (30) days of the Early Termination Date (as defined
      in the Cap Contract), any cap agreement termination payments paid by the Cap
      Counterparty will be deposited into a separate non-interest bearing Eligible
      Account and the Securities Administrator, on each subsequent Distribution Date
      (until the termination date of the Cap Contract or the appointment of a
      successor cap counterparty), will withdraw from the amount then remaining on
      deposit in such reserve account an amount equal to the payment, if any, that
      would have been paid to the Securities Administrator by the original Cap
      Counterparty calculated in accordance with the terms of the original Cap
      Contract, and distribute such amount to the holders of the Certificates in
      accordance with Section 5.01.

     

    
      
        
        

      

      
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    (h) In
      the
      event that the Cap Counterparty fails to perform any of its obligations under
      a
      Cap Contract (including, without limitation, its obligation to make any payment
      or transfer collateral), or breaches any of its representations and warranties
      thereunder, or in the event that an Event of Default, Termination Event, or
      Additional Termination Event (each as defined in the Cap Contract) occurs with
      respect to the related Cap Contract, the Securities Administrator shall
      immediately, but no later than the next Business Day following such failure
      or
      breach, notify the Depositor and send any notices and make any demands, on
      behalf of the Holders of the Offered Certificates, in accordance with the Cap
      Contract. 

     

    (i) In
      the
      event that the Cap Counterparty’s obligations are guaranteed by a third party
      under a guaranty relating to a Cap Contract (such guaranty the “Guaranty” and
      such third party the “Guarantor”), then to the extent that the Cap Counterparty
      fails to make any payment by the close of business on the day it is required
      to
      make payment under the terms of the Cap Contract, the Securities Administrator
      shall, as soon as practicable, but no later than two (2) business days after
      the
      Swap Provider’s failure to pay, demand that the Guarantor make any and all
      payments then required to be made by the Guarantor pursuant to such Guaranty;
      provided, that the Securities Administrator shall in no event be liable for
      any
      failure or delay in the performance by the Cap Counterparty or any Guarantor
      of
      its obligations hereunder or pursuant to the Cap Contract and the Guaranty,
      nor
      for any special, indirect or consequential loss or damage of any kind whatsoever
      (including but not limited to lost profits) in connection
      therewith.

     

    SECTION
      3.26. Advance
      Facility.

     

    (a) Notwithstanding
      anything to the contrary contained herein, (i) each Servicer is hereby
      authorized to enter into an advance facility (“Advance Facility”) but no more
      than two Advance Facilities without the prior written consent of the Trustee,
      which consent shall not be unreasonably withheld, under which (A) the related
      Servicer sells, assigns or pledges to an advancing person (an “Advance Financing
      Person”) its rights under this Agreement to be reimbursed for any P&I
      Advances or Servicing Advances and/or (B) an Advance Financing Person agrees
      to
      finance some or all P&I Advances or Servicing Advances required to be made
      by the related Servicer pursuant to this Agreement and (ii) the related Servicer
      is hereby authorized to assign its rights to the Servicing Fee (which rights
      shall terminate upon the resignation, termination or removal of the Servicer
      pursuant to the terms of this Agreement) or pledge its servicing rights; it
      being understood that neither the Trust Fund nor any party hereto shall have
      a
      right or claim (including without limitation any right of offset) to any amounts
      for reimbursement of P&I Advances or Servicing Advances so assigned or to
      the portion of the Servicing Fee so assigned or the servicing rights so pledged.
      Subject to the provisions of the first sentence of this Section 3.26(a), no
      consent of the Depositor, Trustee, Master Servicer, Certificateholders or any
      other party is required before a Servicer may enter into an Advance Facility,
      but the related Servicer shall provide notice to the Depositor, Master Servicer
      and the Trustee of the existence of any such Advance Facility promptly upon
      the
      consummation thereof stating (a) the identity of the Advance Financing Person
      and (b) the identity of any Person (“Servicer’s Assignee”) who has the right to
      receive amounts in reimbursement of previously unreimbursed P&I Advances or
      Servicing Advances. Notwithstanding the existence of any Advance Facility under
      which an advancing person agrees to finance P&I Advances and/or Servicing
      Advances on the related Servicer’s behalf, such Servicer shall remain obligated
      pursuant to this Agreement to make P&I Advances and Servicing Advances
      pursuant to and as required by this Agreement, and shall not be relieved of
      such
      obligations by virtue of such Advance Facility.

     

    
      
        
        

      

      
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    (b) Reimbursement
      amounts (“Advance Reimbursement Amounts”) shall consist solely of amounts in
      respect of P&I Advances and/or Servicing Advances made with respect to the
      related Mortgage Loans for which the related Servicer would be permitted to
      reimburse itself in accordance with this Agreement, assuming the Servicer had
      made the related P&I Advance(s) and/or Servicing Advance(s).

     

    (c) The
      related Servicer shall maintain and provide to any successor Servicer (with,
      upon request, a copy to the Trustee) a detailed accounting on a loan-by-loan
      basis as to amounts advanced by, pledged or assigned to, and reimbursed to
      any
      Advance Financing Person. The successor Servicer shall be entitled to rely
      on
      any such information provided by the predecessor Servicer, and the successor
      Servicer shall not be liable for any errors in such information.

     

    (d) Reimbursement
      amounts distributed with respect to each Mortgage Loan shall be allocated to
      outstanding unreimbursed P&I Advances or Servicing Advances (as the case may
      be) made with respect to that Mortgage Loan on a “first-in, first out” (FIFO)
      basis. The documentation establishing any Advance Facility shall require the
      related Servicer to provide to the related Advance Financing Person or its
      designee loan-by-loan information with respect to each such reimbursement amount
      distributed to such Advance Financing Person or Advance Facility trustee on
      each
      Distribution Date, to enable the Advance Financing Person or Advance Facility
      trustee to make the FIFO allocation of each such reimbursement amount with
      respect to each Mortgage Loan. The related Servicer shall remain entitled to
      be
      reimbursed by the Advance Financing Person or Advance Facility trustee for
      all
      P&I Advances and Servicing Advances funded by the related Servicer to the
      extent the related rights to be reimbursed therefor have not been sold, assigned
      or pledged to an Advance Financing Person.

     

    (e) Any
      amendment to this Section 3.26 or to any other provision of this Agreement
      that
      may be necessary or appropriate to effect the terms of an Advance Facility
      as
      described generally in this Section 3.26, including amendments to add provisions
      relating to a successor Servicer, may be entered into by the Trustee, the
      Depositor, and the related Servicer without the consent of any
      Certificateholder, notwithstanding anything to the contrary in this Agreement,
      provided, that the Trustee has been provided an Opinion of Counsel that such
      amendment is authorized hereunder and has no material adverse effect on the
      Certificateholders, which opinion shall be an expense of the party requesting
      such opinion but in any case shall not be an expense of the Trustee or the
      Trust
      Fund; provided, further, that the amendment shall not be deemed to adversely
      affect in any material respect the interests of the Certificateholders if the
      Person requesting the amendment obtains a letter from each Rating Agency
      (instead of obtaining an Opinion of Counsel to such effect) stating that the
      amendment would not result in the downgrading or withdrawal of the respective
      ratings then assigned to the Certificates; it being understood and agreed that
      any such rating letter in and of itself will not represent a determination
      as to
      the materiality of any such amendment and will represent a determination only
      as
      to the credit issues affecting any such rating. Prior to entering into an
      Advance Facility, the related Servicer shall notify the lender under such
      facility in writing that: (a) the P&I Advances and/or Servicing Advances
      financed by and/or pledged to the lender are obligations owed to the related
      Servicer on a non-recourse basis payable only from the cash flows and proceeds
      received under this Agreement for reimbursement of P&I Advances and/or
      Servicing Advances only to the extent provided herein, and neither the Master
      Servicer, the Securities Administrator, the Trustee nor the Trust are otherwise
      obligated or liable to repay any P&I Advances and/or Servicing Advances
      financed by the lender; (b) the related Servicer will be responsible for
      remitting to the lender the applicable amounts collected by it as Servicing
      Fees
      and as reimbursement for P&I Advances and/or Servicing Advances funded by
      the lender, as applicable, subject to the restrictions and priorities created
      in
      this Agreement; and (c) neither the Master Servicer, the Securities
      Administrator nor the Trustee shall have any responsibility to calculate any
      amount payable under an Advance Facility or to track or monitor the
      administration of the financing arrangement between the Servicer and the lender
      or the payment of any amount under an Advance Facility.

     

    
      
        
        

      

      
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    (f) The
      related Servicer shall indemnify the Master Servicer, the Securities
      Administrator, the Trustee and the Trust Fund for any cost, liability or expense
      relating to the Advance Facility including, without limitation, a claim, pending
      or threatened, by an Advance Financing Person.

     

    SECTION
      3.27. Indemnification.

     

    Each
      Servicer agrees to indemnify the Trustee, Master Servicer and the Securities
      Administrator, from, and hold the Trustee, Master Servicer and the Securities
      Administrator harmless against, any loss, liability or expense (including
      reasonable attorney’s fees and expenses) incurred by any such Person by reason
      of the related Servicer’s willful misfeasance, bad faith or gross negligence in
      the performance of its duties under this Agreement or by reason of the related
      Servicer’s reckless disregard of its obligations and duties under this
      Agreement. Such indemnity shall survive the termination or discharge of this
      Agreement and the resignation or removal of the related Servicer, the Trustee,
      the Master Servicer and the Securities Administrator. Any payment hereunder
      made
      by the a Servicer to any such Person shall be from such Servicer’s own funds,
      without reimbursement from REMIC I therefor.

     

    SECTION
      3.28. Pre-Funding
      Account.

     

    (a) No
      later
      than the Closing Date, the Securities Administrator shall establish and maintain
      a trust account which shall at all times be an Eligible Account and shall be
      titled “Pre-Funding Account, Wells Fargo Bank, N.A., in trust for the registered
      holders of ACE Securities Corp. Home Equity Loan Trust, Series 2007-HE4,
      Asset-Backed Pass Through Certificates” (the “Pre-Funding Account”). The
      Pre-Funding Account shall consist of two sub-accounts, the “Group I Pre-Funding
      Sub-Account” and the “Group II Pre-Funding Sub-Account”. The Securities
      Administrator shall, promptly upon receipt, deposit in the Group I Pre-Funding
      Sub-Account and the Group II Pre-Funding Sub-Account and retain therein the
      Original Group I Pre-Funded Amount and the Original Group II Pre-Funded Amount
      remitted on the Closing Date by the Depositor. Funds deposited in the
      Pre-Funding Account shall be held in trust for the Certificateholders for the
      uses and purposes set forth herein.

     

    
      
        
        

      

      
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    (b) The
      Securities Administrator will invest funds deposited in the Pre-Funding Account
      as directed by the Depositor in Permitted 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 Agreement,
      if a Person other than the Securities Administrator 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 Agreement, if the
      Securities Administrator or an Affiliate manages or advises such investment
      or
      (iii) within one (1) Business Day of the Securities Administrator’s receipt
      thereof. For federal income tax purposes, the Depositor shall be the owner
      of
      the 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 Pre-Funding Account shall be transferred to the Depositor.
      The
      Depositor shall deposit in the Pre-Funding Account the amount of any net loss
      incurred in respect of any such Permitted Investment immediately upon
      realization of such loss without any right of reimbursement therefor. At no
      time
      will the Pre-Funding Account be an asset of any REMIC created
      hereunder.

     

    (c) Amounts
      on deposit in the Pre-Funding Account shall be withdrawn by the Securities
      Administrator as follows:

     

    (i) On
      any
      Subsequent Transfer Date, the Securities Administrator shall withdraw from
      the
      Group I Pre-Funding Sub-Account or the Group II Pre-Funding Sub-Account, as
      applicable, an amount equal to 100% of the Stated Principal Balances of the
      Subsequent Group I Mortgage Loans or the Subsequent Group II Mortgage Loans,
      as
      applicable, transferred and assigned to the Trustee for deposit in the Trust
      on
      such Subsequent Transfer Date and pay such amount to or upon the order of the
      Depositor upon satisfaction of the conditions set forth in Section 2.09 with
      respect to such transfer and assignment;

     

    (ii) If
      the
      amount on deposit in the Pre-Funding Account (exclusive of any investment income
      therein) has not been reduced to zero during the Pre-Funding Period, on the
      day
      immediately following the termination of the Pre-Funding Period, the Securities
      Administrator shall deposit into the Distribution Account any amounts remaining
      in the Pre-Funding Account (exclusive of any investment income therein) for
      distribution in accordance with the terms hereof;

     

    (iii) To
      withdraw any amount not required to be deposited in the Pre-Funding Account
      or
      deposited therein in error; and

     

    (iv) To
      clear
      and terminate the Pre-Funding Account upon the earlier to occur of (A) the
      Distribution Date immediately following the end of the Pre-Funding Period and
      (B) the termination of this Agreement, with any amounts remaining on deposit
      therein being paid to the Holders of the Certificates then entitled to
      distributions in respect of principal. 

     

    Withdrawals
      pursuant to clauses (i), (ii) and (iii) shall be treated as contributions of
      cash to REMIC I on the date of withdrawal.

     

    
      
        
        

      

      
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    ARTICLE
      IV

    ADMINISTRATION
      AND MASTER SERVICING

    OF
      THE
      MORTGAGE LOANS BY THE MASTER SERVICER

     

    SECTION
      4.01. Master
      Servicer.

     

    The
      Master Servicer shall, from and after the Closing Date supervise, monitor and
      oversee the obligations of Ocwen and GMAC under this Agreement and Countrywide
      under the Servicing Agreement to service and administer the related Mortgage
      Loans in accordance with the terms of this Agreement or the Servicing Agreement
      and shall have full power and authority to do any and all things which it may
      deem necessary or desirable in connection with such master servicing and
      administration. In performing its obligations hereunder, the Master Servicer
      shall act in a manner consistent with Accepted Master Servicing Practices.
      Furthermore, the Master Servicer shall oversee and consult with the Servicers
      as
      necessary from time-to-time to carry out the Master Servicer’s obligations
      hereunder, shall receive, review and evaluate all reports, information and
      other
      data provided to the Master Servicer by the Servicers and shall cause each
      Servicer to perform and observe the covenants, obligations and conditions to
      be
      performed or observed by such Servicer under this Agreement or the Servicing
      Agreement. The Master Servicer shall independently and separately monitor each
      Servicer’s servicing activities with respect to each Mortgage Loan, reconcile
      the results of such monitoring with such information provided in the previous
      sentence on a monthly basis and coordinate corrective adjustments to each
      Servicer’s and Master Servicer’s records, and based on such reconciled and
      corrected information, prepare the statements specified in Section 5.03 and
      any
      other information and statements required to be provided by the Master Servicer
      hereunder. The Master Servicer shall reconcile the results of its Mortgage
      Loan
      monitoring with the actual remittances of each Servicer to the Distribution
      Account pursuant to the terms hereof based on information provided to the Master
      Servicer by each Servicer.

     

    The
      Trustee shall furnish the Servicers and the Master Servicer with any limited
      powers of attorney and other documents in form acceptable to it necessary or
      appropriate to enable the Servicer and the Master Servicer to service and
      administer the Mortgage Loans and REO Properties. The Trustee shall have no
      responsibility for any action of the Master Servicer or the Servicers pursuant
      to any such limited power of attorney and shall be indemnified by the Master
      Servicer or the related Servicer, as applicable, for any cost, liability or
      expense incurred by the Trustee in connection with such Person’s misuse of any
      such power of attorney.

     

    The
      Trustee, the Custodians and the Securities Administrator shall provide access
      to
      the records and documentation in possession of the Trustee, the Custodians
      or
      the Securities Administrator regarding the Mortgage Loans and REO Property
      and
      the servicing thereof to the Certificateholders, the FDIC, and the supervisory
      agents and examiners of the FDIC, such access being afforded only upon
      reasonable prior written request and during normal business hours at the office
      of the Trustee, the Custodians or the Securities Administrator; provided,
      however, that, unless otherwise required by law, none of the Trustee, the
      Custodians or the Securities Administrator shall be required to provide access
      to such records and documentation if the provision thereof would violate the
      legal right to privacy of any Mortgagor. The Trustee, the Custodians and the
      Securities Administrator shall allow representatives of the above entities
      to
      photocopy any of the records and documentation and shall provide equipment
      for
      that purpose at a charge that covers the Trustee’s, the Custodians’ or the
      Securities Administrator’s actual costs.

     

    
      
        
        

      

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

     

    SECTION
      4.02. REMIC-Related
      Covenants.

     

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

     

    SECTION
      4.03. Monitoring
      of Servicers.

     

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

     

    (b) The
      Master Servicer, for the benefit of the Trustee and the Certificateholders,
      shall enforce the obligations of Ocwen and GMAC under this Agreement and shall,
      in the event that Ocwen or GMAC fails to perform its obligations in accordance
      with this Agreement, subject to this Section and Article VIII, notify the
      Trustee and the Trustee shall terminate the rights and obligations of the
      related Servicer hereunder in accordance with the provisions of Article VIII.
      In
      the event that Countrywide fails to perform its obligations in accordance with
      the Servicing Agreement, the Master Servicer shall terminate the rights and
      obligations of such Servicer as servicer in accordance with the Servicing
      Agreement. In the event the rights and obligations of a Servicer (or any
      successor thereto) are terminated, the Master Servicer shall act as servicer
      of
      the related Mortgage Loans or a successor servicer shall be appointed in
      accordance with the provisions of Article VIII or the Servicing Agreement,
      as
      applicable. Such enforcement, including, without limitation, the legal
      prosecution of claims and the pursuit of other appropriate remedies, shall
      be in
      such form and carried out to such an extent and at such time as the Master
      Servicer, in its good faith business judgment, would require were it the owner
      of the Mortgage Loans. The Master Servicer shall pay the costs of such
      enforcement at its own expense, provided that the Master Servicer shall not
      be
      required to prosecute or defend any legal action except to the extent that
      the
      Master Servicer shall have received reasonable indemnity for its costs and
      expenses in pursuing such action.

     

    
      
        
        

      

      
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    (c) The
      Master Servicer shall be entitled to be reimbursed by the Servicers (or from
      amounts on deposit in the Distribution Account if the related Servicer is unable
      to fulfill its obligations hereunder or under the Servicing Agreement) for
      all
      reasonable out-of-pocket or third party costs associated with the transfer
      of
      servicing from the predecessor Servicer (or if the predecessor Servicer is
      the
      Master Servicer, from the Servicer immediately preceding the Master Servicer),
      including without limitation, any reasonable out-of-pocket or third party costs
      or expenses associated with the complete transfer of all servicing data and
      the
      completion, correction or manipulation of such servicing data as may be required
      by the successor servicer to correct any errors or insufficiencies in the
      servicing data or otherwise to enable the successor servicer to service the
      related Mortgage Loans properly and effectively, upon presentation of reasonable
      documentation of such costs and expenses.

     

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

     

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

     

    SECTION
      4.04. Fidelity
      Bond.

     

    The
      Master Servicer, at its expense, shall maintain in effect a blanket fidelity
      bond and an errors and omissions insurance policy, affording coverage with
      respect to all directors, officers, employees and other Persons acting on such
      Master Servicer’s behalf, and covering errors and omissions in the performance
      of the Master Servicer’s obligations hereunder. The errors and omissions
      insurance policy and the fidelity bond shall be in such form and amount
      generally acceptable for entities serving as master servicers or
      trustees.

     

    
      
        
        

      

      
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    SECTION
      4.05. Power
      to
      Act; Procedures.

     

    The
      Master Servicer shall master service the Mortgage Loans and shall have full
      power and authority, subject to the REMIC Provisions and the provisions of
      Article XI, to do any and all things that it may deem necessary or desirable
      in
      connection with the master servicing and administration of the Mortgage Loans,
      including but not limited to the power and authority (i) to execute and deliver,
      on behalf of the Certificateholders and the Trustee, customary consents or
      waivers and other instruments and documents, (ii) to consent to transfers of
      any
      Mortgaged Property and assumptions of the Mortgage Notes and related Mortgages,
      (iii) to collect any Insurance Proceeds and Liquidation Proceeds, and (iv)
      to
      effectuate foreclosure or other conversion of the ownership of the Mortgaged
      Property securing any Mortgage Loan, in each case, in accordance with the
      provisions of this Agreement; provided, however, that the Master Servicer shall
      not (and, consistent with its responsibilities under Section 4.03, shall not
      permit a Servicer to) knowingly or intentionally take any action, or fail to
      take (or fail to cause to be taken) any action reasonably within its control
      and
      the scope of duties more specifically set forth herein, that, under the REMIC
      Provisions, if taken or not taken, as the case may be, would cause REMIC I,
      REMIC II, REMIC III or REMIC IV to fail to qualify as a REMIC or result in
      the
      imposition of a tax upon the Trust Fund (including but not limited to the tax
      on
      prohibited transactions as defined in Section 860F(a)(2) of the Code and the
      tax
      on contributions to a REMIC set forth in Section 860G(d) of the Code) unless
      the
      Master Servicer has received an Opinion of Counsel (but not at the expense
      of
      the Master Servicer) to the effect that the contemplated action will not cause
      REMIC I, REMIC II, REMIC III or REMIC IV to fail to qualify as a REMIC or result
      in the imposition of a tax upon REMIC I, REMIC II, REMIC III or REMIC IV, as
      the
      case may be. The Trustee shall furnish the Master Servicer, upon written request
      from a Servicing Officer, with any powers of attorney prepared and delivered
      to
      it and reasonably acceptable to it by empowering the Master Servicer or the
      Servicer to execute and deliver instruments of satisfaction or cancellation,
      or
      of partial or full release or discharge, and to foreclose upon or otherwise
      liquidate Mortgaged Property, and to appeal, prosecute or defend in any court
      action relating to the Mortgage Loans or the Mortgaged Property, in accordance
      with this Agreement, and the Trustee shall execute and deliver such other
      documents prepared and delivered to it and reasonably acceptable to it, as
      the
      Master Servicer or the related Servicer may request, to enable the Master
      Servicer to master service and administer the Mortgage Loans and carry out
      its
      duties hereunder, in each case in accordance with Accepted Master Servicing
      Practices (and the Trustee shall have no liability for misuse of any such powers
      of attorney by the Master Servicer or the related Servicer and shall be
      indemnified by the Master Servicer or the related Servicer, as applicable,
      for
      any cost, liability or expense incurred by the Trustee in connection with such
      Person’s use or misuse of any such power of attorney). If the Master Servicer or
      the Trustee has been advised that it is likely that the laws of the state in
      which action is to be taken prohibit such action if taken in the name of the
      Trustee or that the Trustee would be adversely affected under the “doing
      business” or tax laws of such state if such action is taken in its name, the
      Master Servicer shall join with the Trustee in the appointment of a co-trustee
      pursuant to Section 9.10. In the performance of its duties hereunder, the Master
      Servicer shall be an independent contractor and shall not, except in those
      instances where it is taking action in the name of the Trustee, be deemed to
      be
      the agent of the Trustee.

     

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

     

    To
      the
      extent Mortgage Loans contain enforceable due-on-sale clauses, the Master
      Servicer shall cause the Servicers to enforce such clauses in accordance with
      this Agreement or the Servicing Agreement. If applicable law prohibits the
      enforcement of a due-on-sale clause or such clause is otherwise not enforced
      in
      accordance with this Agreement or the Servicing Agreement and, as a consequence,
      a Mortgage Loan is assumed, the original Mortgagor may be released from
      liability in accordance with this Agreement or the Servicing
      Agreement.

     

    
      
        
        

      

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

     

    (a) The
      Master Servicer shall transmit to the Trustee or the applicable Custodian such
      documents and instruments coming into the possession of the Master Servicer
      from
      time to time as are required by the terms hereof to be delivered to the Trustee
      or the applicable Custodian. Any funds received by the Master Servicer in
      respect of any Mortgage Loan or which otherwise are collected by the Master
      Servicer as Liquidation Proceeds or Insurance Proceeds in respect of any
      Mortgage Loan shall be remitted to the Securities Administrator for deposit
      in
      the Distribution Account. The Master Servicer shall, and, subject to Section
      3.21 of this Agreement or to the extent provided therein, the Servicing
      Agreement, shall cause the Servicers to, provide access to information and
      documentation regarding the related Mortgage Loans to the Trustee, its agents
      and accountants at any time upon reasonable request and during normal business
      hours, and to Certificateholders that are savings and loan associations, banks
      or insurance companies, the Office of Thrift Supervision, the FDIC and the
      supervisory agents and examiners of such Office and Corporation or examiners
      of
      any other federal or state banking or insurance regulatory authority if so
      required by applicable regulations of the Office of Thrift Supervision or other
      regulatory authority, such access to be afforded without charge but only upon
      reasonable request in writing and during normal business hours at the offices
      of
      the Master Servicer designated by it. In fulfilling such a request the Master
      Servicer shall not be responsible for determining the sufficiency of such
      information.

     

    (b) All
      Mortgage Files and funds collected or held by, or under the control of, the
      Master Servicer, in respect of any Mortgage Loans, whether from the collection
      of principal and interest payments or from Liquidation Proceeds or Insurance
      Proceeds, shall be remitted to the Securities Administrator for deposit in
      the
      Distribution Account.

     

    SECTION
      4.08. Standard
      Hazard Insurance and Flood Insurance Policies.

     

    For
      each
      Mortgage Loan, the Master Servicer shall enforce the obligation of Ocwen and
      GMAC under this Agreement and Countrywide under the Servicing Agreement to
      maintain or cause to be maintained standard fire and casualty insurance and,
      where applicable, flood insurance, all in accordance with the provisions of
      this
      Agreement. It is understood and agreed that such insurance shall be with
      insurers meeting the eligibility requirements set forth in Section 3.11 of
      this
      Agreement or the eligibility requirements set forth in the Servicing Agreement
      and that no earthquake or other additional insurance is to be required of any
      Mortgagor or to be maintained on property acquired in respect of a defaulted
      loan, other than pursuant to such applicable laws and regulations as shall
      at
      any time be in force and as shall require such additional
      insurance.

     

    SECTION
      4.09. Presentment
      of Claims and Collection of Proceeds.

     

    The
      Master Servicer shall enforce each Servicer’s obligations under this Agreement
      or under the Servicing Agreement, as applicable, to prepare and present on
      behalf of the Trustee and the Certificateholders all claims under any insurance
      policies and take such actions (including the negotiation, settlement,
      compromise or enforcement of the insured’s claim) as shall be necessary to
      realize recovery under such policies. Any proceeds disbursed to the Master
      Servicer (or disbursed to the Servicer and remitted to the Master Servicer)
      in
      respect of such policies, bonds or contracts shall be promptly deposited in
      the
      Distribution Account upon receipt, except that any amounts realized that are
      to
      be applied to the repair or restoration of the related Mortgaged Property as
      a
      condition precedent to the presentation of claims on the related Mortgage Loan
      to the insurer under any applicable insurance policy need not be so deposited
      or
      remitted.

     

    
      
        
        

      

      
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    SECTION
      4.10. Maintenance
      of Primary Mortgage Insurance Policies.

     

    (a) The
      Master Servicer shall not take, or permit a Servicer to take (to the extent
      such
      action is prohibited by this Agreement or the Servicing Agreement), any action
      that would result in noncoverage under any primary mortgage insurance policy
      of
      any loss which, but for the actions of the Master Servicer or the related
      Servicer, as applicable, would have been covered thereunder. The Master Servicer
      shall use its best reasonable efforts to cause the related Servicer to keep
      in
      force and effect (to the extent that the Mortgage Loan requires the Mortgagor
      to
      maintain such insurance), primary mortgage insurance applicable to each Mortgage
      Loan serviced by such Servicer in accordance with the provisions of this
      Agreement or the Servicing Agreement, as applicable. The Master Servicer shall
      not, and shall not permit the Servicer to, cancel or refuse to renew any primary
      mortgage insurance policy that is in effect at the date of the initial issuance
      of the Mortgage Note and is required to be kept in force hereunder except in
      accordance with the provisions of this Agreement or the Servicing
      Agreement.

     

    (b) The
      Master Servicer agrees to cause the Servicer to present, on behalf of the
      Trustee and the Certificateholders, claims to the insurer under any primary
      mortgage insurance policies and, in this regard, to take such reasonable action
      as shall be necessary to permit recovery under any primary mortgage insurance
      policies respecting defaulted Mortgage Loans..

     

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

     

    The
      Trustee or the applicable Custodian, shall retain possession and custody of
      the
      originals (to the extent available) of any primary mortgage insurance policies,
      or certificate of insurance if applicable, and any certificates of renewal
      as to
      the foregoing as may be issued from time to time as contemplated by this
      Agreement. Until all amounts distributable in respect of the Certificates have
      been distributed in full and the Master Servicer and the Servicers have
      otherwise fulfilled their respective obligations under this Agreement or the
      Servicing Agreement, as applicable, the Trustee or the applicable Custodian
      shall also retain possession and custody of each Mortgage File in accordance
      with and subject to the terms and conditions of this Agreement and the related
      Custodial Agreement. The Master Servicer shall promptly deliver or cause to
      be
      delivered to the Trustee or the applicable Custodian, upon the execution or
      receipt thereof the originals of any primary mortgage insurance policies, any
      certificates of renewal, and such other documents or instruments that constitute
      Mortgage Loan Documents that come into the possession of the Master Servicer
      from time to time.

     

    
      
        
        

      

      
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    SECTION
      4.12. Realization
      Upon Defaulted Mortgage Loans.

     

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

     

    SECTION
      4.13. Compensation
      for the Master Servicer.

     

    As
      compensation for the activities of the Master Servicer hereunder, the Master
      Servicer shall be entitled to the Master Servicing Fee and the income from
      investment of or earnings on the funds from time to time in the Distribution
      Account, as provided in Section 3.10. The compensation payable to the Master
      Servicer in respect of any Distribution Date shall be reduced in accordance
      with
      Section 4.19. The Master Servicer shall be required to pay all expenses incurred
      by it in connection with its activities hereunder and shall not be entitled
      to
      reimbursement therefor except as provided in this Agreement.

     

    SECTION
      4.14. REO
      Property.

     

    (a) In
      the
      event the Trust Fund acquires ownership of any REO Property in respect of any
      Mortgage Loan, the deed or certificate of sale shall be issued to the Trustee,
      or to its nominee, on behalf of the related Certificateholders. The Master
      Servicer shall cause the Servicers to sell, any REO Property as expeditiously
      as
      possible and in accordance with the provisions of this Agreement or the
      Servicing Agreement, as applicable. Further, the Master Servicer shall cause
      the
      Servicers to sell any REO Property prior to three years after the end of the
      calendar year of its acquisition by REMIC I unless (i) the Trustee shall have
      been supplied by the related Servicer with an Opinion of Counsel to the effect
      that the holding by the Trust Fund of such REO Property subsequent to such
      three-year period will not result in the imposition of taxes on “prohibited
      transactions” of any REMIC hereunder as defined in section 860F of the Code or
      cause any REMIC hereunder to fail to qualify as a REMIC at any time that any
      Certificates are outstanding, in which case the Trust Fund may continue to
      hold
      such Mortgaged Property (subject to any conditions contained in such Opinion
      of
      Counsel) or (ii) the related Servicer shall have applied for, prior to the
      expiration of such three-year period, an extension of such three-year period
      in
      the manner contemplated by Section 856(e)(3) of the Code, in which case the
      three-year period shall be extended by the applicable extension period. The
      Master Servicer shall cause the related Servicer to protect and conserve, such
      REO Property in the manner and to the extent required by this Agreement or
      the
      Servicing Agreement, as applicable, in accordance with the REMIC Provisions
      and
      in a manner that does not result in a tax on “net income from foreclosure
      property” or cause such REO Property to fail to qualify as “foreclosure
      property” within the meaning of Section 860G(a)(8) of the Code.

     

    (b) The
      Master Servicer shall cause the Servicers to deposit all funds collected and
      received in connection with the operation of any REO Property into the related
      REO Account or in the account designated for such amounts under the Servicing
      Agreement.

     

    
      
        
        

      

      
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    SECTION
      4.15. Master
      Servicer Annual Statement of Compliance.

     

    (a) The
      Master Servicer and the Securities Administrator shall deliver (or otherwise
      make available) (and the Master Servicer and Securities Administrator shall
      cause any Additional Servicer or Servicing Function Participant engaged by
      it to
      deliver) to the Depositor and the Securities Administrator on or before March
      15
      of each year, commencing in March 2008, an Officer’s Certificate stating, as to
      the signer thereof, that (A) a review of such party’s activities during the
      preceding calendar year or portion thereof and of such party’s performance under
      this Agreement, or such other applicable agreement in the case of an Additional
      Servicer or Servicing Function Participant, has been made under such officer’s
      supervision and (B) to the best of such officer’s knowledge, based on such
      review, such party has fulfilled all its obligations under this Agreement,
      or
      such other applicable agreement in the case of an Additional Servicer or
      Servicing Function Participant, in all material respects throughout such year
      or
      portion thereof, or, if there has been a failure to fulfill any such obligation
      in any material respect, specifying each such failure known to such officer
      and
      the nature and status thereof. 

     

    (b) The
      Master Servicer shall include all annual statements of compliance received
      by it
      with its own annual statement of compliance to be submitted to the Securities
      Administrator pursuant to this Section 4.15. 

     

    (c) In
      the
      event the Master Servicer, the Securities Administrator or any Servicing
      Function Participant engaged by the parties is terminated, assigns its rights
      and obligations under, or resigns pursuant to the terms of this Agreement,
      or
      any applicable agreement in the case of a Servicing Function Participant, as
      the
      case may be, such party shall provide an Officer’s Certificate pursuant to this
      Section 4.15 or to such applicable agreement, as the case may be,
      notwithstanding any such termination, assignment or resignation.

     

    (d) Failure
      of the Master Servicer to comply timely with this Section 4.15 shall be deemed
      a
      Master Servicer Event of Default, automatically, without notice and without
      any
      cure period, and the Trustee may, in addition to whatever rights the Trustee
      may
      have under this Agreement and at law or in equity or to damages, including
      injunctive relief and specific performance, terminate all the rights and
      obligations of the Master Servicer under this Agreement and in and to the
      Mortgage Loans and the proceeds thereof without compensating the Master Servicer
      for the same. This paragraph shall supersede any other provision in this
      Agreement or any other agreement to the contrary.

     

    (e) Copies
      of
      such Master Servicer annual statements of compliance shall be provided to any
      Certificateholder upon request, by the Master Servicer or by the Trustee at
      the
      Master Servicer’s expense if the Master Servicer failed to provide such copies
      (unless (i) the Master Servicer shall have failed to provide the Trustee with
      such statement or (ii) the Trustee shall be unaware of the Master Servicer’s
      failure to provide such statement).

     

    (f) Delivery
      under this Section 4.15 of such reports, information and documents to the
      Trustee is for informational purposes only, and the Trustee’s receipt of such
      shall not constitute constructive notice of any information contained therein
      or
      determinable from information contained therein, including the Master Servicer’s
      compliance with any of its covenants hereunder (as to which the Trustee is
      entitled to conclusively rely exclusively on an Officer’s
      Certificate).

     

    
      
        
        

      

      
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    SECTION
      4.16. Master
      Servicer Assessments of Compliance. 

     

    (a) By
      March
      15 of each year, commencing in March 2008, the Master Servicer and the
      Securities Administrator, each at its own expense, shall furnish, or otherwise
      make available, and each such party shall cause any Servicing Function
      Participant engaged by it to furnish, each at its own expense, to the Securities
      Administrator and the Depositor, a report on an assessment of compliance with
      the Relevant Servicing Criteria that contains (A) a statement by such party
      of
      its responsibility for assessing compliance with the Relevant Servicing
      Criteria, (B) a statement that such party used the Relevant Servicing Criteria
      to assess compliance with the Relevant Servicing Criteria, (C) such party’s
      assessment of compliance with the Relevant Servicing Criteria as of and for
      the
      fiscal year covered by the Form 10-K required to be filed pursuant to Section
      5.06(d), including, if there has been any material instance of noncompliance
      with the Relevant Servicing Criteria, a discussion of each such failure and
      the
      nature and status thereof, and (D) a statement that a registered public
      accounting firm has issued an attestation report on such party’s assessment of
      compliance with the Relevant Servicing Criteria as of and for such period.
      

     

    (b) No
      later
      than the end of each fiscal year for the Trust for which a 10-K is required
      to
      be filed, the Master Servicer shall forward to the Securities Administrator
      and
      to the Depositor the name of each Servicing Function Participant engaged by
      it
      and what Relevant Servicing Criteria will be addressed in the report on
      assessment of compliance prepared by such Servicing Function Participant
      (provided,
      however,
      that
      the Master Servicer need not provide such information to the Securities
      Administrator so long as the Master Servicer and the Securities Administrator
      are the same Person). When the Master Servicer and the Securities Administrator
      (or any Servicing Function Participant engaged by them) submit their assessments
      to the Securities Administrator, such parties will also at such time include
      the
      assessment (and attestation pursuant to Section 4.17) of each Servicing Function
      Participant engaged by it. 

     

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

     

    (d) The
      Master Servicer shall include all annual reports on assessment of compliance
      received by it from the Servicers with its own assessment of compliance to
      be
      submitted to the Securities Administrator pursuant to this Section 4.16.

     

    (e) In
      the
      event the Master Servicer, the Securities Administrator or any Servicing
      Function Participant engaged by the parties is terminated, assigns its rights
      and obligations under, or resigns pursuant to the terms of this Agreement,
      or
      any other applicable agreement in the case of a Servicing Function Participant,
      as the case may be, such party shall provide a report on assessment of
      compliance pursuant to this Section 4.16 or to such other applicable agreement,
      notwithstanding any such termination, assignment or resignation. 

     

    
      
        
        

      

      
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    (f) Failure
      of the Master Servicer to comply timely with this Section 4.16 shall be deemed
      a
      Master Servicer Event of Default, automatically, without notice and without
      any
      cure period, and the Trustee may, in addition to whatever rights the Trustee
      may
      have under this Agreement and at law or in equity or to damages, including
      injunctive relief and specific performance, terminate all the rights and
      obligations of the Master Servicer under this Agreement and in and to the
      Mortgage Loans and the proceeds thereof without compensating the Master Servicer
      for the same. This paragraph shall supersede any other provision in this
      Agreement or any other agreement to the contrary.

     

    SECTION
      4.17. Master
      Servicer Attestation Reports.

     

    (a) By
      March
      15 of each year, commencing in March 2008, the Master Servicer and the
      Securities Administrator, each at its own expense, shall cause, and each such
      party shall cause any Servicing Function Participant engaged by it to cause,
      each at its own expense, a registered public accounting firm (which may also
      render other services to the Master Servicer, the Securities Administrator,
      or
      such other Servicing Function Participants, as the case may be) and that is
      a
      member of the American Institute of Certified Public Accountants to furnish
      an
      attestation report to the Securities Administrator and the Depositor, to the
      effect that (i) it has obtained a representation regarding certain matters
      from
      the management of such party, which includes an assertion that such party has
      complied with the Relevant Servicing Criteria, and (ii) on the basis of an
      examination conducted by such firm in accordance with standards for attestation
      engagements issued or adopted by the PCAOB, it is expressing an opinion as
      to
      whether such party’s compliance with the Relevant Servicing Criteria was fairly
      stated in all material respects, or it cannot express an overall opinion
      regarding such party’s assessment of compliance with the Relevant Servicing
      Criteria. In the event that an overall opinion cannot be expressed, such
      registered public accounting firm shall state in such report why it was unable
      to express such an opinion. Such report must be available for general use and
      not contain restricted use language. 

     

    (b) Promptly
      after receipt of such assessment of compliance and attestation report from
      the
      Master Servicer, the Securities Administrator or any Servicing Function
      Participant engaged by such parties, the Securities Administrator shall confirm
      that each assessment submitted pursuant to Section 4.16 is coupled with an
      attestation meeting the requirements of this Section and notify the Depositor
      of
      any exceptions.

     

    (c) The
      Master Servicer shall include each such attestation furnished to it from the
      Servicers with its own attestation to be submitted to the Securities
      Administrator pursuant to this Section 4.17. 

     

    (d) In
      the
      event the Master Servicer, the Securities Administrator or any Servicing
      Function Participant engaged by the parties is terminated assigns its rights
      and
      duties under, or resigns pursuant to the terms of this Agreement, or any
      applicable custodial agreement or servicing or sub-servicing agreement in the
      case of a Servicing Function Participant, as the case may be, such party shall
      cause a registered public accounting firm to provide an attestation pursuant
      to
      this Section 4.17, or such other applicable agreement, notwithstanding any
      such
      termination, assignment or resignation.

     

    
      
        
        

      

      
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    (e) Failure
      of the Master Servicer to comply timely with this Section 4.17 shall be deemed
      a
      Master Servicer Event of Default, automatically, without notice and without
      any
      cure period, and the Trustee may, in addition to whatever rights the Trustee
      may
      have under this Agreement and at law or in equity or to damages, including
      injunctive relief and specific performance, terminate all the rights and
      obligations of the Master Servicer under this Agreement and in and to the
      Mortgage Loans and the proceeds thereof without compensating the Master Servicer
      for the same. This paragraph shall supersede any other provision in this
      Agreement or any other agreement to the contrary.

     

    SECTION
      4.18. Annual
      Certification.

     

    (a) Each
      Form
      10-K required to be filed for the Trust pursuant to Section 5.06 shall include
      a
      Sarbanes-Oxley Certification required to be included therewith pursuant to
      the
      Sarbanes-Oxley Act. Each of the Master Servicer and the Securities Administrator
      shall provide, and shall cause any Servicing Function Participant engaged by
      it
      to provide to the Person who signs the Sarbanes-Oxley Certification (the
“Certifying Person”), by March 15 of each year in which the Trust is subject to
      the reporting requirements of the Exchange Act and otherwise within a reasonable
      period of time upon request, a certification (each, a “Back-Up Certification”),
      in the form attached hereto as Exhibit C, upon which the Certifying Person,
      the
      entity for which the Certifying Person acts as an officer, and such entity’s
      officers, directors and Affiliates (collectively with the Certifying Person,
      “Certification Parties”) can reasonably rely. The officer of the Master Servicer
      in charge of the master servicing function shall serve as the senior Certifying
      Person on behalf of the Trust. Such officer of the Certifying Person can be
      contacted by e-mail at cts.sec.notifications@wellsfargo.com or by facsimile
      at
      410-715-2380. In the event any such party or any Servicing Function Participant
      engaged by any such party is terminated, assigns its rights or duties under,
      or
      resigns pursuant to the terms of this Agreement, or any applicable sub-servicing
      agreement, as the case may be, such party shall provide a Back-Up Certification
      to the Certifying Person pursuant to this Section 4.18 with respect to the
      period of time it was subject to this Agreement or any applicable sub-servicing
      agreement, as the case may be. Notwithstanding the foregoing, (i) the Master
      Servicer and the Securities Administrator shall not be required to deliver
      a
      Back-Up Certification to each other if both are the same Person and the Master
      Servicer is the Certifying Person and (ii) the Master Servicer shall not be
      obligated to sign the Sarbanes-Oxley Certification in the event that it does
      not
      receive any Back-Up Certification required to be furnished to it pursuant to
      this Section.

     

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

     

    In
      the
      event of any Prepayment Interest Shortfalls, the Master Servicer shall deposit
      into the Distribution Account not later than the related Distribution Date
      an
      amount equal to the lesser of (i) the aggregate amounts required to be paid
      by
      the Servicers with respect to Prepayment Interest Shortfalls attributable to
      Principal Prepayments in full on the Mortgage Loans for the related Distribution
      Date, and not so paid by the Servicers and (ii) the aggregate amount of the
      compensation payable to the Master Servicer for such Distribution Date in
      accordance with Section 4.13, without reimbursement therefor.

     

    
      
        
        

      

      
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    SECTION
      4.20. Prepayment
      Penalty Verification.

     

    On
      or
      prior to each Servicer Remittance Date, each Servicer shall provide in an
      electronic format acceptable to the Master Servicer the data necessary for
      the
      Master Servicer to perform its verification duties set forth in this Section
      4.20. The Master Servicer or a third party reasonably acceptable to the Master
      Servicer and the Depositor (the “Verification Agent”) will perform such
      verification duties and will use its best efforts to issue its findings in
      a
      report (the “Verification Report”) delivered to the Master Servicer and the
      Depositor within ten (10) Business Days following the related Distribution
      Date;
      provided, however, that if the Verification Agent is unable to issue the
      Verification Report within ten (10) Business Days following the Distribution
      Date, the Verification Agent may issue and deliver to the Master Servicer and
      the Depositor the Verification Report upon the completion of its verification
      duties. The Master Servicer shall forward the Verification Report to the related
      Servicer and shall notify the related Servicer if the Master Servicer has
      determined that such Servicer did not deliver the appropriate Prepayment Charge
      to the Securities Administrator in accordance with this Agreement. Such written
      notification from the Master Servicer shall include the loan number, prepayment
      penalty code and prepayment penalty amount as calculated by the Master Servicer
      or the Verification Agent, as applicable, of each Mortgage Loan for which there
      is a discrepancy. If the related Servicer agrees with the verified amounts,
      such
      Servicer shall adjust the immediately succeeding Servicer Report and the amount
      remitted to the Securities Administrator with respect to prepayments
      accordingly. If the related Servicer disagrees with the determination of the
      Master Servicer, such Servicer shall, within five (5) Business Days of its
      receipt of the Verification Report, notify the Master Servicer of such
      disagreement and provide the Master Servicer with detailed information to
      support its position. The related Servicer and the Master Servicer shall
      cooperate to resolve any discrepancy on or prior to the immediately succeeding
      Servicer Remittance Date, and the related Servicer will indicate the effect
      of
      such resolution on the Servicer Report and shall adjust the amount remitted
      with
      respect to prepayments on such Servicer Remittance Date
      accordingly.

     

    During
      such time as the related Servicer and the Master Servicer are resolving
      discrepancies with respect to the Prepayment Charges, no payments in respect
      of
      any disputed Prepayment Charges will be remitted to the Securities Administrator
      for deposit in the Distribution Account and the Master Servicer shall not be
      obligated to deposit such payments, unless otherwise required pursuant to
      Section 8.01 hereof. In connection with such duties, the Master Servicer shall
      be able to rely solely on the information provided to it by the Servicers in
      accordance with this Section. The Master Servicer shall not be responsible
      for
      verifying the accuracy of any of the information provided to it by the
      Servicers.

     

    
      
        
        

      

      
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    ARTICLE
      V

     

    PAYMENTS
      TO CERTIFICATEHOLDERS

     

    SECTION
      5.01. Distributions.

     

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

     

    With
      respect to the Group I Mortgage Loans:

     

    (i) to
      the
      Holders of REMIC I Regular Interest LT1, REMIC I Regular Interest LT1PF, REMIC
      I
      Regular Interest LTCE2G, REMIC I Regular Interest LTCE2C and REMIC I Regular
      Interest LTP in an amount equal to (A) the Uncertificated Interest for each
      REMIC I Regular Interest for such Distribution Date, plus (B) any amounts in
      respect thereof remaining unpaid from previous Distribution Dates;
      and

     

    (ii) to
      the
      Holders of REMIC I Regular Interest LTP, on the Distribution Date immediately
      following the expiration of the latest Prepayment Charge as identified on the
      Prepayment Charge Schedule or any Distribution Date thereafter until $100 has
      been distributed pursuant to this clause;

     

    (2) to
      the
      Holders of REMIC I Regular Interest LT1 and REMIC I Regular Interest LT1PF,
      in
      an amount equal to the remainder of the Available Distribution Amount for such
      Distribution Date after the distributions made pursuant to clause (i) above,
      allocated as follows:

     

    (a) to
      the
      Holders of REMIC I Regular Interest LT1, until the Uncertificated Balance of
      REMIC I Regular Interest LT1 is reduced to zero;

     

    (b) to
      the
      Holders of REMIC I Regular Interest LT1PF, until the Uncertificated Balance
      of
      REMIC I Regular Interest LT1PF is reduced to zero; and

     

    (c) any
      remaining amount to the Holders of the Class R Certificates (in respect of
      the
      Class R-1 Interest);

     

    provided,
      however, that for the first three Distribution Dates, such amounts relating
      to
      the Initial Group I Mortgage Loans shall be allocated to REMIC I Regular
      Interest I-LT1 and such amounts relating to the Subsequent Group I Mortgage
      Loans shall be allocated to REMIC I Regular Interest LT1PF.

     

    
      
        
        

      

      
        159

        
          

        

      

      
        
        

      

    

     

    With
      respect to the Group II Mortgage Loans:

     

    (3) to
      the
      Holders of REMIC I Regular Interest LT2, REMIC I Regular Interest LTCE2G, REMIC
      I Regular Interest LTCE2C and REMIC I Regular Interest LT2PF in an amount equal
      to (A) the Uncertificated Interest for each REMIC I Regular Interest for such
      Distribution Date, plus (B) any amounts in respect thereof remaining unpaid
      from
      previous Distribution Dates;

     

    (4) to
      the
      Holders of REMIC I Regular Interest LT2 and REMIC I Regular Interest LT2PF,
      in
      an amount equal to the remainder of the Available Distribution Amount for such
      Distribution Date after the distributions made pursuant to clause (1) above,
      allocated as follows:

     

    (a) to
      the
      Holders of REMIC I Regular Interest LT2, until the Uncertificated Balance of
      REMIC I Regular Interest LT2 is reduced to zero;

     

    (b) to
      the
      Holders of REMIC I Regular Interest LT2PF, until the Uncertificated Balance
      of
      REMIC I Regular Interest LT2PF is reduced to zero; and

     

    (c) any
      remaining amount to the Holders of the Class R Certificates (in respect of
      the
      Class R-1 Interest);

     

    provided,
      however, that for the first three Distribution Dates, such amounts relating
      to
      the Initial Group II Mortgage Loans shall be allocated to REMIC I Regular
      Interest LT2 and such amounts relating to the Subsequent Group II Mortgage
      Loans
      shall be allocated to REMIC I Regular Interest LT2PF.

     

    On
      each
      Distribution Date, all amounts representing Prepayment Charges in respect of
      the
      Mortgage Loans received during the related Prepayment Period will be distributed
      by REMIC I to the Holders of REMIC I Regular Interest LTP. The payment of the
      foregoing amounts to the Holders of REMIC I Regular Interest LTP shall not
      reduce the Uncertificated Balance thereof.

     

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

     

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

     

    (i) to
      Holders of REMIC II Regular Interest I, REMIC II Regular Interest I-CE-2 and
      REMIC II Regular Interest I-1-A through I-53-B, pro
      rata,
      in an
      amount equal to (A) Uncertificated Interest for such REMIC II Regular Interests
      for such Distribution Date, plus (B) any amounts payable in respect thereof
      remaining unpaid from previous Distribution Dates;

     

    
      
        
        

      

      
        160

        
          

        

      

      
        
        

      

    

     

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

     

    (iii) to
      the
      extent of amounts remaining after distributions made pursuant to clauses (i)
      and
      (ii) above, payments of principal shall be allocated to REMIC II Regular
      Interests I-1-A through I-53-B starting with the lowest numerical denomination
      until the Uncertificated Balance of each such REMIC II Regular Interest is
      reduced to zero, provided that, for REMIC II Regular Interests with the same
      numerical denomination, such payments of principal shall be allocated
pro
      rata
      between
      such REMIC II Regular Interests.

     

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

     

    (i) to
      Holders of REMIC II Regular Interest II, REMIC II Regular Interest I-CE-2 and
      each of REMIC II Regular Interest II-1-A through II-53-B, pro
      rata,
      in an
      amount equal to (A) Uncertificated Interest for such REMIC II Regular Interests
      for such Distribution Date, plus (B) any amounts payable in respect thereof
      remaining unpaid from previous Distribution Dates; 

     

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

     

    (iii) to
      the
      extent of amounts remaining after distributions made pursuant to clauses (i)
      and
      (ii) above, payments of principal shall be allocated to REMIC II Regular
      Interests II-1-A through II-53-B starting with the lowest numerical denomination
      until the Uncertificated Balance of each such REMIC II Regular Interest is
      reduced to zero, provided that, for REMIC II Regular Interests with the same
      numerical denomination, such payments of principal shall be allocated
pro
      rata
      between
      such REMIC II Regular Interests.

     

    (c) to
      the
      Holders of REMIC II Regular Interest I-53-B, all amounts representing Prepayment
      Charges in respect of the Group I Mortgage Loans received during the related
      Prepayment Period and to the Holders of REMIC II Regular Interest II-53-B,
      all
      amounts representing Prepayment Charges in respect of the Group II Mortgage
      Loans received during the related Prepayment Period.

     

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

     

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

    
       

      
        
          
          

        

        
          161

          
            

          

        

        
          
          

        

         

      

    

    (ii) to
      Holders of REMIC III Regular Interest I-SUB, REMIC III Regular Interest I-GRP,
      REMIC III Regular Interest II-SUB, REMIC III Regular Interest II-GRP, and REMIC
      III Regular Interest XX, pro
      rata,
      in an
      amount equal to (A) the Uncertificated Interest for such Distribution Date,
      plus
      (B) any amounts in respect thereof remaining unpaid from previous Distribution
      Dates;

     

    (iii) to
      the
      Holders of REMIC III Regular Interests, in an amount equal to the remainder
      of
      the REMIC III Marker Allocation Percentage of the available funds for such
      Distribution Date after the distributions made pursuant to clause (i) above,
      allocated as follows:

     

    (A) 98.00%
      of
      such remainder to the Holders of REMIC III Regular Interest AA, until the
      Uncertificated Balance of such REMIC III Regular Interest is reduced to
      zero;

     

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

     

    
      
        
        

      

      
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    (C) to
      the
      Holders of REMIC III Regular Interest P, (1) 100% of the Prepayment Charges
      deemed distributed on REMIC I Regular Interest I-53-B and REMIC I Regular
      Interest II-53-B and (2) on the Distribution Date immediately following the
      expiration of the latest Prepayment Charge as identified on the Prepayment
      Charge Schedule or any Distribution Date thereafter until $100 has been
      distributed pursuant to this clause; then

     

    (D) any
      remaining amount to the Holders of the Class R Certificate, in respect of the
      Class R-III Interest;

     

    provided,
      however, that 98.00% and 2.00% of any principal payments that are attributable
      to an Overcollateralization Reduction Amount shall be allocated to Holders
      of
      REMIC III Regular Interest AA and REMIC III Regular Interest ZZ,
      respectively.

     

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

     

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

    

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

     

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

     

    first,
      commencing on the Distribution Date in November 2007, to the Supplemental
      Interest Trust, an amount equal to (x) the Group I Allocation Percentage of
      (i)
      any Net Swap Payment owed to the Swap Provider and (ii) any Swap Termination
      Payment owed to the Swap Provider not due to a Swap Provider Trigger Event
      (to
      the extent such amount has not been paid by the Securities Administrator from
      any upfront payment received pursuant to any related replacement interest rate
      swap agreement that may be entered into by the Trustee on behalf of the
      Supplemental Interest Trust) and (y) any Net Swap Payment and Swap Termination
      Payment not paid pursuant to clause (x) in first
      under
      Section 5.01(c)(3) below;

    
       

      
        
          
          

        

        
          163

          
            

          

        

        
          
          

        

      

    

     

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

     

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

     

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

     

    first,
      commencing on the Distribution Date in November 2007, to the Supplemental
      Interest Trust, an amount equal to (x) the Group II Allocation Percentage of
      (i)
      any Net Swap Payment owed to the Swap Provider and (ii) any Swap Termination
      Payment owed to the Swap Provider not due to a Swap Provider Trigger Event
      (to
      the extent such amount has not been paid by the Securities Administrator from
      any upfront payment received pursuant to any related replacement interest rate
      swap agreement that may be entered into by the Trustee on behalf of the
      Supplemental Interest Trust) and (y) any Net Swap Payment and Swap Termination
      Payment not paid pursuant to clause (x) in first
      under
      Section 5.01(c)(2) above;

     

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

     

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

     

    
      
        
        

      

      
        164

        
          

        

      

      
        
        

      

    

     

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

     

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

     

    (5) On
      each
      Distribution Date (a) prior to the Stepdown Date or (b) on which a Trigger
      Event
      is in effect, the Securities Administrator shall withdraw from the Distribution
      Account to the extent on deposit therein an amount equal to the Group I
      Principal Distribution Amount and Group II Principal Distribution Amount and
      distribute to the Certificateholders the following amounts, in the following
      order of priority:

     

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

     

    first,
      commencing on the Distribution Date in November 2007, to the Supplemental
      Interest Trust, an amount equal to (x) the Group I Allocation Percentage of
      (i)
      any Net Swap Payment owed to the Swap Provider and (ii) any Swap Termination
      Payment owed to the Swap Provider not due to a Swap Provider Trigger Event
      to
      the extent not paid from the Interest Remittance Amount on such Distribution
      Date and (y) any Net Swap Payment and Swap Termination Payment not paid pursuant
      to clause (x) in first
      of
      5.01(c)(5)(ii) below;

     

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

     

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

     

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

     

    
      first,
        commencing on the Distribution Date in November 2007, to the Supplemental
        Interest Trust, an amount equal to (x) the Group II Allocation Percentage
        of (i)
        any Net Swap Payment owed to the Swap Provider and (ii) any Swap Termination
        Payment owed to the Swap Provider not due to a Swap Provider Trigger Event
        to
        the extent not paid from the Interest Remittance Amount on such Distribution
        Date and (y) any Net Swap Payment and Swap Termination Payment not paid pursuant
        to clause (x) in first
        of
        5.01(c)(5)(i) above;

       

    

    
      
        
        

      

      
        165

        
          

        

      

      
        
        

      

    

     

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

     

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

     

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

     

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

     

    (6) On
      each
      Distribution Date (a) on or after the Stepdown Date and (b) on which a Trigger
      Event is not in effect, the Securities Administrator shall withdraw from the
      Distribution Account to the extent on deposit therein an amount equal to the
      Group I Principal Distribution Amount and Group II Principal Distribution Amount
      and distribute to the Certificateholders the following amounts, in the following
      order of priority:

     

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

     

    first,
      commencing on the Distribution Date in November 2007 to the Supplemental
      Interest Trust, an amount equal to (x) the Group I Allocation Percentage of
      (i)
      any Net Swap Payment owed to the Swap Provider and (ii) any Swap Termination
      Payment owed to the Swap Provider not due to a Swap Provider Trigger Event
      to
      the extent not paid from the Interest Remittance Amount on such Distribution
      Date and (y) any Net Swap Payment and Swap Termination Payment not paid pursuant
      to clause (x) in first
      of
      5.01(c)(6)(ii) below;

     

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

     

    
      
        
        

      

      
        166

        
          

        

      

      
        
        

      

    

     

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

     

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

     

    first,
      commencing on the Distribution Date in November 2007, to the Supplemental
      Interest Trust, an amount equal to (x) the Group II Allocation Percentage of
      (i)
      any Net Swap Payment owed to the Swap Provider and (ii) any Swap Termination
      Payment owed to the Swap Provider not due to a Swap Provider Trigger Event
      to
      the extent not paid from the Interest Remittance Amount on such Distribution
      Date and (y) any Net Swap Payment and Swap Termination Payment not paid pursuant
      to clause (x) in first
      of
      5.01(c)(6)(i) above;

     

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

     

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

     

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

     

    first,
      to the
      Holders of the Class M-1 Certificates, the lesser of (x) the remaining Principal
      Distribution Amount and (y) the Class M-1 Principal Distribution Amount, until
      the Certificate Principal Balance of the Class M-1 Certificates has been reduced
      to zero;

     

    second,
      to the
      Holders of the Class M-2 Certificates, the lesser of (x) the excess of (i)
      the
      remaining Principal Distribution Amount over (ii) the amount distributed to
      the
      Holders of the Class M-1 Certificates under clause first
      above,
      and (y) the Class M-2 Principal Distribution Amount, until the Certificate
      Principal Balance of the Class M-2 Certificates has been reduced to
      zero;

     

    third,
      to the
      Holders of the Class M-3 Certificates, the lesser of (x) the excess of (i)
      the
      remaining Principal Distribution Amount over (ii) the sum of the amounts
      distributed to the Holders of the Class M-1 Certificates under clause
first
      above
      and to the Holders of the Class M-2 Certificates under clause second
      above,
      and (y) the Class M-3 Principal Distribution Amount, until the Certificate
      Principal Balance of the Class M-3 Certificates has been reduced to
      zero;

     

    
      
        
        

      

      
        167

        
          

        

      

      
        
        

      

    

     

    fourth,
      to the
      Holders of the Class M-4 Certificates, the lesser of (x) the excess of (i)
      the
      remaining Principal Distribution Amount over (ii) the sum of the amounts
      distributed to the Holders of the Class M-1 Certificates under clause
first
      above,
      to the Holders of the Class M-2 Certificates under clause second
      above
      and to the Holders of the Class M-3 Certificates under clause third
      above,
      and (y) the Class M-4 Principal Distribution Amount, until the Certificate
      Principal Balance of the Class M-4 Certificates has been reduced to zero;

     

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

     

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

     

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

     

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

     

    
      
        
        

      

      
        168

        
          

        

      

      
        
        

      

    

     

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

     

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

     

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

     

    (i) first,
      to
      the
      Holders of the Class or Classes of Certificates then entitled to receive
      distributions in respect of principal, in an amount equal to the
      Overcollateralization Increase Amount, payable to such Holders, to be paid
      as
      part of the Principal Distribution Amount;

     

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

     

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

     

    
      
        
        

      

      
        169

        
          

        

      

      
        
        

      

    

     

    (iv) fourth,
      concurrently, to the Holders of the Class A Certificates, in an amount equal
      to
      such Certificates’ allocated share of any Prepayment Interest Shortfalls on the
      Mortgage Loans to the extent not covered by payments pursuant to Section 3.23
      or
      4.19 of this Agreement or pursuant to the Servicing Agreement and any shortfalls
      resulting from the application of the Relief Act or similar state or local
      law
      or the bankruptcy code with respect to the Mortgage Loans to the extent not
      previously reimbursed pursuant to Section 1.02;

     

    (v) fifth,
      sequentially, to the Holders of the Class M-1, Class M-2, Class M-3, Class
      M-4,
      Class M-5, Class M-6, Class M-7, Class M-8 and Class M-9 Certificates, in that
      order, in an amount equal to such certificates’ share of any Prepayment Interest
      Shortfalls on the Mortgage Loans to the extent not covered by payments pursuant
      to Sections 3.23 or Section 4.19 of this Agreement or pursuant to the Servicing
      Agreement and any Relief Act Interest Shortfall, in each case that were
      allocated to such Class for such Distribution Date and for any prior
      Distribution Date, to the extent not previously reimbursed pursuant to Section
      1.02;

     

    (vi) sixth,
      to the
      Reserve Fund, the amount by which the Net WAC Rate Carryover Amounts, if any,
      with respect to the Class A Certificate and Mezzanine Certificates exceeds
      any
      amount in the Reserve Fund that was not distributed on prior Distribution
      Dates;

     

    (vii) seventh,
      commencing on the Distribution Date in November 2007, to the Supplemental
      Interest Trust, an amount equal to any Swap Termination Payment owed to the
      Swap
      Provider due to a Swap Provider Trigger Event pursuant to the Swap Agreement
      (to
      the extent such amount has not been paid by the Securities Administrator from
      any upfront payment received pursuant to any related replacement interest rate
      swap agreement that may be entered into by the Trustee on behalf of the
      Supplemental Interest Trust); 

     

    (viii) eighth,
      to the
      Holders of the Class CE-1 Certificates the Interest Distribution Amount and
      any
      Overcollateralization Reduction Amount for such Distribution Date;
      and

     

    (ix) ninth,
      to the
      Holders of the Class R Certificates, in respect of the Class R-III Interest,
      any
      remaining amounts; provided that if such Distribution Date is the Distribution
      Date immediately following the expiration of the latest Prepayment Charge term
      as identified on the Mortgage Loan Schedule or any Distribution Date thereafter,
      then any such remaining amounts will be distributed first, to the Holders of
      the
      Class P Certificates, until the Certificate Principal Balance thereof has been
      reduced to zero and second, to the Holders of the Class R
      Certificates.

     

    The
      Class
      CE-1 Certificates are intended to receive all principal and interest received
      by
      the Trust on the Mortgage Loans that is not otherwise distributable to any
      other
      Class of Regular Certificates or REMIC Regular Interests. If the Securities
      Administrator determines that the Residual Certificates are entitled to any
      distributions on any Distribution Date other than the final Distribution Date,
      the Securities Administrator, prior to any such distribution to any Residual
      Certificate, shall notify the Depositor of such impending distribution. Upon
      such notification, the Depositor will prepare and request that the other parties
      hereto enter into an amendment to the Pooling and Servicing Agreement pursuant
      to Section 12.01, to revise such mistake in the distribution
      provisions.

     

    
      
        
        

      

      
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    On
      the
      day prior to each Distribution Date, the Securities Administrator shall deposit
      all amounts received with respect to the Cap Contracts into the Reserve Fund.
      On
      each Distribution Date, after making the distributions of the Available
      Distribution Amount as set forth above, the Securities Administrator will first,
      withdraw from the Reserve Fund all income from the investment of funds in the
      Reserve Fund and distribute such amount to the Holders of the Class CE
      Certificates, and second, withdraw from the Reserve Fund, to the extent of
      amounts remaining on deposit therein (which shall include any payments received
      under the Cap Contracts), the amount of any Net WAC Rate Carryover Amount for
      such Distribution Date and distribute such amount first, with respect to any
      amounts received by the Securities Administrator on account of the Group I
      Cap
      Contract to the Holders of the Class A-1 Certificates and with respect to any
      amounts received by the Securities Administrator on account of the Group II
      Cap
      Contract concurrently to the Holders of the Class A-2 Certificates on a pro
      rata
      basis, based on the entitlement of each such Class; and, with respect to any
      amounts remaining undistributed paid pursuant to the Cap Contracts, second,
      to
      the Class M-1 Certificates, third, to the Class M-2 Certificates, fourth, to
      the
      Class M-3 Certificates, fifth, to the Class M-4 Certificates, sixth, to the
      Class M-5 Certificates, seventh, to the Class M-6 Certificates, eighth, to
      the
      Class M-7 Certificates, ninth, to the Class M-8 Certificates and tenth, to
      the
      Class M-9 Certificates, in each case to the extent to the extent any Net WAC
      Rate Carryover Amount is allocable to each such Class.

     

    On
      each
      Distribution Date, after making the distributions of the Available Distribution
      Amount as set forth above, the Securities Administrator will withdraw from
      the
      Reserve Fund all income from the investment of funds in the Reserve Fund and
      distribute such amount to the Holders of the Class CE-1 Certificates. With
      respect to any amounts deposited in the Reserve Fund from the Net Monthly Excess
      Cashflow under Section 5.01(c)(7)(viii) above and not distributed pursuant
      to
      the preceding paragraph, first, concurrently, (i) to the Holders of the Class
      A-1 Certificates, the related Net WAC Rate Carryover Amount remaining unpaid
      for
      such Distribution Date, on a pro
      rata
      basis,
      based on the entitlement of each Class and (ii) to the Holders of the Class
      A-2A, Class A-2B, Class A-2C and Class A-2D Certificates, the related Net WAC
      Rate Carryover Amount remaining unpaid for such Distribution Date; second,
      sequentially to the Holders of the Class M-1 Certificates, Class M-2
      Certificates, Class M-3 Certificates, Class M-4 Certificates, Class M-5
      Certificates, Class M-6 Certificates, Class M-7 Certificates, Class M-8
      Certificates and Class M-9 Certificates, in that order, in respect of the
      related Net WAC Rate Carryover Amount remaining unpaid for each such Class
      for
      such Distribution Date and third to the Class CE-1 Certificates.

     

    (e) As
      described in Section 5.01(c)(2), (3), (5) and (6) above, Net Swap Payments
      and Swap Termination Payments (other than Swap Termination Payments resulting
      from a Swap Provider Trigger Event) payable by the Supplemental Interest Trust
      to the Swap Provider pursuant to the Swap Agreement (to the extent not paid
      by
      the Securities Administrator from any upfront payment received pursuant to
      any
      replacement interest rate swap agreement that may be entered into by the
      Supplemental Interest Trust Trustee) shall be deducted from the Interest
      Remittance Amount, and to the extent of any such remaining amounts due, from
      the
      Principal Remittance Amount, prior to any distributions to the
      Certificateholders. 

     

    
      
        
        

      

      
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    On
      or
      before each Distribution Date commencing on the Distribution Date occurring
      in
      November 2007, such amounts will be distributed to the Supplemental Interest
      Trust and paid by the Securities Administrator to the Swap Provider as
      follows:

     

    first,
      to make
      any Net Swap Payment owed to the Swap Provider pursuant to the Swap Agreement
      for such Distribution Date; and 

     

    second,
      to make
      any Swap Termination Payment (not due to a Swap Provider Trigger Event) owed
      to
      the Swap Provider pursuant to the Swap Agreement for such Distribution Date
      (to
      the extent not paid by the Securities Administrator from any upfront payment
      received pursuant to any replacement interest rate swap agreement that may
      be
      entered into by the Supplemental Interest Trust Trustee). 

     

    Any
      Swap
      Termination Payment triggered by a Swap Provider Trigger Event owed to the
      Swap
      Provider pursuant to the Swap Agreement will be subordinated to distributions
      to
      the Holders of the Offered Certificates and shall be paid pursuant to Section
      5.01(c)(7)(viii).

     

    (f) On
      each
      Distribution Date commencing on the Distribution Date occurring in November
      2007
      and ending immediately following the Distribution Date in April 2012, to the
      extent required, following the distribution of the Net Monthly Excess Cashflow
      and withdrawals from the Reserve Fund, any Net Swap Payments payable to the
      Securities Administrator on behalf of the Supplemental Interest Trust by the
      Swap Provider will be withdrawn by the Securities Administrator from amounts
      on
      deposit in the Supplemental Interest Trust and distributed on the related
      Distribution Date in the following order of priority: 

     

    first,
      concurrently, to each Class of Class A Certificates, the related Senior Interest
      Distribution Amount remaining undistributed after the distributions of the
      Group
      I Interest Remittance Amount, the Group II Interest Remittance Amount and the
      Net Monthly Excess Cashflow, on a pro
      rata
      basis
      based on such respective remaining Senior Interest Distribution
      Amounts;

     

    second,
      sequentially, to the Class M-1, Class M-2, Class M-3, Class M-4, Class M-5,
      Class M-6, Class M-7, Class M-8 and Class M-9 Certificates, in that order,
      the
      related Interest Distribution Amount and Interest Carry Forward Amount, to
      the
      extent remaining undistributed after the distributions of the Group I Interest
      Remittance Amount, the Group II Interest Remittance Amount and the Net Monthly
      Excess Cashflow;

     

    third,
      to the
      Holders of the Class or Classes of Certificates then entitled to receive
      distributions in respect of principal, in an amount necessary to maintain the
      Required Overcollateralization Amount after taking into account distributions
      made pursuant to Section 5.01(c)(7)(i) above;

     

    fourth,
      sequentially to the Class M-1, Class M-2, Class M-3, Class M-4, Class M-5,
      Class
      M-6, Class M-7, Class M-8 and Class M-9 Certificates, in that order, in each
      case up to the related Allocated Realized Loss Amount related to such
      Certificates for such Distribution Date remaining undistributed after
      distribution of the Net Monthly Excess Cashflow;

     

    
      
        
        

      

      
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    fifth,
      concurrently, to each class of Class A Certificates, the related Net WAC Rate
      Carryover Amount, to the extent remaining undistributed after distributions
      of
      Net Monthly Excess Cashflow on deposit in the Reserve Fund, on a pro
      rata
      basis
      based on such respective Net WAC Rate Carryover Amounts remaining
      unpaid;

     

    sixth,
      sequentially, to the Class M-1, Class M-2, Class M-3, Class M-4, Class M-5,
      Class M-6, Class M-7, Class M-8 and Class M-9 Certificates, in that order,
      the
      related Net WAC Rate Carryover Amount, to the extent remaining undistributed
      after distributions are made from the Reserve Fund;

     

    seventh,
      to the
      Swap Provider, an amount equal to any Swap Termination Payment owed to the
      Swap
      Provider due to a Swap Provider Trigger Event pursuant to the Swap Agreement
      (to
      the extent such amount has not been paid by the Securities Administrator from
      any upfront payment received pursuant to any related replacement interest rate
      swap agreement that may be entered into by the Supplemental Interest Trust
      Trustee); and

     

    eighth,
      to the
      Class CE-1 Certificates, any remaining amounts.

     

    (g) On
      each
      Distribution Date, for so long as GMAC is the Servicer of the GMAC Mortgage
      Loans, the Securities Administrator shall distribute from amounts on deposit
      in
      the Distribution Account to the Holders of the Class CE-2 Certificates, with
      respect to each such Mortgage Loan, one-twelfth of the product of (i) the excess
      of the Servicing Fee Rate over the GMAC Servicing Fee Rate, if any, multiplied
      by (ii) the Scheduled Principal Balance of the related Mortgage Loan as of
      the
      Due Date in the preceding calendar month (the “GMAC Excess Servicing
      Fee”).

     

    (h) On
      each
      Distribution Date, for so long as Countrywide is the Servicer of the Countrywide
      Mortgage Loans, the Securities Administrator shall distribute from amounts
      on
      deposit in the Distribution Account to the Holders of the Class CE-2
      Certificates, with respect to each such Mortgage Loan, one-twelfth of the
      product of (i) the excess of the Servicing Fee Rate over the Countrywide
      Servicing Fee Rate, if any, multiplied by (ii) the Scheduled Principal Balance
      of the related Mortgage Loan as of the Due Date in the preceding calendar month
      (the “Countrywide Excess Servicing Fee, together with the Ocwen Excess Servicing
      Fee, the “Excess Servicing Fee”).

     

    (i) On
      each
      Distribution Date, the Securities Administrator shall withdraw any amounts
      then
      on deposit in the Distribution Account that represent Prepayment Charges and
      shall distribute such amounts to the Class P Certificateholders as described
      above.

     

    (j) All
      distributions made with respect to each Class of Certificates on each
      Distribution Date shall be allocated pro
      rata
      among
      the outstanding Certificates in such Class based on their respective Percentage
      Interests. Payments in respect of each Class of Certificates on each
      Distribution Date will be made to the Holders of the respective Class of record
      on the related Record Date (except as otherwise provided in Section 5.01(i)
      or
      Section 10.01 respecting the final distribution on such Class), based on the
      aggregate Percentage Interest represented by their respective Certificates,
      and
      shall be made by wire transfer of immediately available funds to the account
      of
      any such Holder at a bank or other entity having appropriate facilities
      therefor, if such Holder shall have so notified the Securities Administrator
      in
      writing at least five (5) Business Days prior to the Record Date immediately
      prior to such Distribution Date and is the registered owner of Certificates
      having an initial aggregate Certificate Principal Balance that is in excess
      of
      the lesser of (i) $5,000,000 or (ii) two-thirds of the initial Certificate
      Principal Balance of such Class of Certificates, or otherwise by check mailed
      by
      first class mail to the address of such Holder appearing in the Certificate
      Register. The final distribution on each Certificate will be made in like
      manner, but only upon presentment and surrender of such Certificate at the
      Corporate Trust Office of the Securities Administrator or such other location
      specified in the notice to Certificateholders of such final
      distribution.

     

    
      
        
        

      

      
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    Each
      distribution with respect to a Book-Entry Certificate shall be paid to the
      Depository, as Holder thereof, and the Depository shall be responsible for
      crediting the amount of such distribution to the accounts of its Depository
      Participants in accordance with its normal procedures. Each Depository
      Participant shall be responsible for disbursing such distribution to the
      Certificate Owners that it represents and to each indirect participating
      brokerage firm (a “brokerage firm” or “indirect participating firm”) for which
      it acts as agent. Each brokerage firm shall be responsible for disbursing funds
      to the Certificate Owners that it represents. None of the Trustee, the
      Depositor, the Servicer, the Securities Administrator or the Master Servicer
      shall have any responsibility therefor except as otherwise provided by this
      Agreement or applicable law.

     

    (k) The
      rights of the Certificateholders to receive distributions in respect of the
      Certificates, and all interests of the Certificateholders in such distributions,
      shall be as set forth in this Agreement. None of the Holders of any Class of
      Certificates, the Trustee, the Servicer, the Securities Administrator or the
      Master Servicer shall in any way be responsible or liable to the Holders of
      any
      other Class of Certificates in respect of amounts properly previously
      distributed on the Certificates.

     

    (l) Except
      as
      otherwise provided in Section 10.01, whenever the Securities Administrator
      expects that the final distribution with respect to any Class of Certificates
      will be made on the next Distribution Date, the Securities Administrator shall,
      no later than three (3) days before the related Distribution Date, mail to
      each
      Holder on such date of such Class of Certificates a notice to the effect
      that:

     

    (i) the
      Securities Administrator expects that the final distribution with respect to
      such Class of Certificates will be made on such Distribution Date but only
      upon
      presentation and surrender of such Certificates at the office of the Securities
      Administrator therein specified, and

     

    (ii) no
      interest shall accrue on such Certificates from and after the end of the related
      Interest Accrual Period.

     

    Any
      funds
      not distributed to any Holder or Holders of Certificates of such Class on such
      Distribution Date because of the failure of such Holder or Holders to tender
      their Certificates shall, on such date, be set aside and held in trust by the
      Securities Administrator and credited to the account of the appropriate
      non-tendering Holder or Holders. If any Certificates as to which notice has
      been
      given pursuant to this Section 5.01(i) shall not have been surrendered for
      cancellation within six months after the time specified in such notice, the
      Securities Administrator shall mail a second notice to the remaining
      non-tendering Certificateholders to surrender their Certificates for
      cancellation in order to receive the final distribution with respect thereto.
      If
      within one year after the second notice all such Certificates shall not have
      been surrendered for cancellation, the Securities Administrator shall, directly
      or through an agent, mail a final notice to the remaining non-tendering
      Certificateholders concerning surrender of their Certificates but shall continue
      to hold any remaining funds for the benefit of non-tendering Certificateholders.
      The costs and expenses of maintaining the funds in trust and of contacting
      such
      Certificateholders shall be paid out of the assets remaining in such trust
      fund.
      If within one year after the final notice any such Certificates shall not have
      been surrendered for cancellation, the Securities Administrator shall pay to
      the
      Depositor all such amounts, and all rights of non-tendering Certificateholders
      in or to such amounts shall thereupon cease. No interest shall accrue or be
      payable to any Certificateholder on any amount held in trust by the Securities
      Administrator as a result of such Certificateholder’s failure to surrender its
      Certificate(s) on the final Distribution Date for final payment thereof in
      accordance with this Section 5.01(i). Any such amounts held in trust by the
      Securities Administrator shall be held uninvested in an Eligible
      Account.

     

    
      
        
        

      

      
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    (m) Notwithstanding
      anything to the contrary herein, (i) in no event shall the Certificate Principal
      Balance of a Class A Certificate or a Mezzanine Certificate be reduced more
      than
      once in respect of any particular amount both (a) allocated to such Certificate
      in respect of Realized Losses pursuant to Section 5.04 and (b) distributed
      to
      the Holder of such Certificate in reduction of the Certificate Principal Balance
      thereof pursuant to this Section 5.01 from Net Monthly Excess Cashflow and
      (ii)
      in no event shall the Uncertificated Balance of a REMIC Regular Interest be
      reduced more than once in respect of any particular amount both (a) allocated
      to
      such REMIC Regular Interest in respect of Realized Losses pursuant to Section
      5.04 and (b) distributed on such REMIC Regular Interest in reduction of the
      Uncertificated Balance thereof pursuant to this Section 5.01.

     

    SECTION
      5.02. Statements
      to Certificateholders.

     

    On
      each
      Distribution Date, the Securities Administrator (based on the information set
      forth in the Servicer Reports for such Distribution Date and information
      provided by the Swap Provider under the Swap Agreement with respect to payments
      made pursuant to the Swap Agreement and information provided by the Cap
      Counterparty with respect to payments made pursuant to the Cap Contracts) shall
      make available to each Holder of the Certificates, the Servicer and the Credit
      Risk Manager, a statement as to the distributions made on such Distribution
      Date
      setting forth:

     

    (i) the
      applicable Interest Accrual Periods and general Distribution Dates;

     

    (ii) with
      respect to each loan group, the total cash flows received and the general
      sources thereof;

     

    
      
        
        

      

      
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    (iii) the
      aggregate
      Servicing Fee received by the Servicers and
      Master Servicing Fee received by the Master Servicer during the related Due
      Period;

     

    (iv) the
      amount, if any, of other fees or expenses accrued and paid, with an
      identification of the payee and the general purpose of such fees;

     

    (v) with
      respect to each loan group, the amount of the related distribution to Holders
      of
      the Certificates (by class) allocable to principal, separately identifying
      (A)
      the aggregate amount of any Principal Prepayments included therein, (B) the
      aggregate of all scheduled payments of principal included therein and (C) any
      Overcollateralization Increase Amount included therein;

     

    (vi) with
      respect to each loan group, the amount of such distribution to Holders of the
      Certificates (by class) allocable to interest and the portion thereof, if any,
      provided by the Swap Agreement in the aggregate;

     

    (vii) with
      respect to each loan group, the Interest Carry Forward Amounts and any Net
      WAC
      Rate Carryover Amounts for the related Certificates (if any);

     

    (viii) with
      respect to each loan group, the number and aggregate principal balance of any
      Mortgage Loans (not including a Liquidated Mortgage Loan as of the end of the
      Prepayment Period) that were delinquent (exclusive of Mortgage Loans in
      foreclosure) using the “OTS” method (1) one scheduled payment is delinquent, (2)
      two scheduled payments are delinquent, (3) three scheduled payments are
      delinquent and (4) foreclosure proceedings have been commenced, and loss
      information for the period;

     

    (ix) the
      number, aggregate principal balance, weighted average remaining term to maturity
      and weighted average Mortgage Rate of the Mortgage Loans as of the related
      Due
      Date;

     

    (x) with
      respect to each loan group and any Mortgage Loan that was liquidated during
      the
      preceding calendar month, the loan number and Scheduled Principal Balance of,
      and Realized Loss on, such Mortgage Loan as of the end of the related Prepayment
      Period;

     

    (xi) the
      total
      number and principal balance of any real estate owned, or REO Properties, as
      of
      the end of the related Prepayment Period;

     

    (xii) with
      respect to each loan group, whether the Stepdown Date has occurred and whether
      Trigger Event is in effect;

     

    (xiii) with
      respect to each loan group, the cumulative Realized Losses through the end
      of
      the preceding month;

     

    (xiv) the
      aggregate amount of Extraordinary Trust Fund Expenses withdrawn from the
      Distribution Account for such Distribution Date;

     

    
      
        
        

      

      
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    (xv) with
      respect to each loan group, the Certificate Principal Balance of the related
      Certificates before and after giving effect to the distribution of principal
      and
      allocation of Allocated Realized Loss Amounts on such Distribution
      Date;

     

    (xvi) with
      respect to each loan group, the number and Scheduled Principal Balance of all
      the Mortgage Loans for the following Distribution Date;

     

    (xvii) with
      respect to each loan group, the three-month rolling average of the percent
      equivalent of a fraction, the numerator of which is the aggregate Scheduled
      Principal Balance of the Mortgage Loans in such loan group that are 60 days
      or
      more delinquent or are in bankruptcy or foreclosure or are REO Properties,
      and
      the denominator of which is the Scheduled Principal Balances of all of the
      Mortgage Loans in such loan group;

     

    (xviii) the
      Certificate Factor for each such Class of Certificates applicable to such
      Distribution Date;

     

    (xix) the
      Interest Distribution Amount in respect of the Class A Certificates, the
      Mezzanine Certificates and the Class CE-1 Certificates for such Distribution
      Date and the Interest Carry Forward Amount, if any, with respect to the Class
      A
      Certificates and the Mezzanine Certificates on such Distribution Date, and
      in
      the case of the Class A Certificates and the Mezzanine Certificates separately
      identifying any reduction thereof due to allocations of Prepayment Interest
      Shortfalls and interest shortfalls including the following Realized losses,
      Relief Act Interest Shortfalls and Net WAC Rate Carryover Amounts;

     

    (xx) the
      aggregate amount of any Prepayment Interest Shortfall for such Distribution
      Date, to the extent not covered by payments by Ocwen or GMAC pursuant to
      Section 3.23 of this Agreement, Countrywide pursuant to the Servicing
      Agreement or the Master Servicer pursuant to Section 4.19 of this
      Agreement; 

     

    (xxi) the
      aggregate amount of Relief Act Interest Shortfalls for such Distribution
      Date;

     

    (xxii) the
      amount of, if any, of Net Monthly Excess Cashflow or excess spread and the
      application of such Net Monthly Excess Cashflow;

     

    (xxiii) the
      Required Overcollateralization Amount and the Credit Enhancement Percentage
      for
      such Distribution Date;

     

    (xxiv) the
      Overcollateralization Increase Amount, if any, for such Distribution
      Date;

     

    (xxv) the
      Overcollateralization Reduction Amount, if any, for such Distribution
      Date;

     

    (xxvi) the
      Pass-Through Rate for each class of Certificates for such Distribution
      Date;

     

    
      
        
        

      

      
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    (xxvii) 
      the
      amount of any deposit to the Reserve Fund contemplated by
      Section 3.25(b);

     

    (xxviii) the
      balance of the Reserve Fund prior to the deposit or withdrawal of any amounts
      on
      such Distribution Date;

     

    (xxix) the
      amount of any deposit to the Reserve Fund pursuant to
      Section 5.01(c)(7)(vii);

     

    (xxx) the
      Aggregate Loss Severity Percentage;

     

    (xxxi) with
      respect to each loan group, the amount of the Prepayment Charges remitted by
      the
      Servicer;

     

    (xxxii) the
      amount of any Net Swap Payment payable to the Trust, any related Net Swap
      Payment payable to the Swap Provider, any Swap Termination Payment payable
      to
      the Trust and any related Swap Termination Payment payable to the Swap Provider;
      

     

    (xxxiii) amounts
      received under the Cap Contracts;

     

    (xxxiv) the
      amount withdrawn from the Pre Funding Account pursuant to Section 3.28(c) on
      that Distribution Date, the amount remaining on deposit in the Pre-Funding
      Account following such Distribution Date, and the amount withdrawn from the
      Pre-Funding Account and used to buy Subsequent Mortgage Loans prior to such
      Distribution Date;

     

    (xxxv) for
      the
      distribution occurring on the Distribution Date immediately following the end
      of
      the Pre-Funding Period, the balance on deposit in the Group I Pre-Funding
      Sub-Account and/or the Group II Pre-Funding Sub-Account that has not been used
      to purchase Subsequent Group I Mortgage Loans and/or Subsequent Group II
      Mortgage Loans, as applicable, and that is being distributed to the related
      Class A Certificates as a mandatory distribution of principal, if any, on such
      Distribution Date; and

     

    (xxxvi) the
      amount withdrawn from the Capitalized Interest Account pursuant to Section
      3.29
      on that Distribution Date and the amount remaining on deposit in the Capitalized
      Interest Account.. 

     

    The
      Securities Administrator will make such statement (and, at its option, any
      additional files containing the same information in an alternative format)
      available each month to the Certificateholders and the Rating Agencies via
      the
      Securities Administrator’s internet website. The Securities Administrator’s
      internet website shall initially be located at http:\\www.ctslink.com and
      assistance in using the website can be obtained by calling the Securities
      Administrator’s customer service desk at 1 (866) 846-4526. Parties that are
      unable to use the above distribution options are entitled to have a paper copy
      mailed to them via first class mail by calling the customer service desk and
      indicating such. The Securities Administrator shall have the right to change
      the
      way such statements are distributed in order to make such distribution more
      convenient and/or more accessible to the above parties and the Securities
      Administrator shall provide timely and adequate notification to all above
      parties regarding any such changes.

     

    
      
        
        

      

      
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    In
      the
      case of information furnished pursuant to subclauses (i) and (ii) above, the
      amounts shall be expressed as a dollar amount per Single Certificate of the
      relevant Class.

     

    Within
      a
      reasonable period of time after the end of each calendar year, the Securities
      Administrator shall furnish upon request to each Person who at any time during
      the calendar year was a Holder of a Regular Certificate a statement containing
      the information set forth in subclauses (i) through (iii) above, aggregated
      for
      such calendar year or applicable portion thereof during which such person was
      a
      Certificateholder. Such obligation of the Securities Administrator shall be
      deemed to have been satisfied to the extent that substantially comparable
      information shall be provided by the Securities Administrator pursuant to any
      requirements of the Code as from time to time are in force.

     

    Within
      a
      reasonable period of time after the end of each calendar year, the Securities
      Administrator shall furnish upon request to each Person who at any time during
      the calendar year was a Holder of a Residual Certificate a statement setting
      forth the amount, if any, actually distributed with respect to the Residual
      Certificates, as appropriate, aggregated for such calendar year or applicable
      portion thereof during which such Person was a Certificateholder.

     

    The
      Securities Administrator shall, upon request, furnish to the NIMS Insurer and
      each Certificateholder during the term of this Agreement, such periodic,
      special, or other reports or information, whether or not provided for herein,
      as
      shall be reasonable with respect to the Certificateholder, as applicable, or
      otherwise with respect to the purposes of this Agreement, all such reports
      or
      information to be provided at the expense of the Certificateholder, in
      accordance with such reasonable and explicit instructions and directions as
      the
      Certificateholder may provide.

     

    On
      each
      Distribution Date the Securities Administrator shall provide Bloomberg Financial
      Markets, L.P. (“Bloomberg”) CUSIP level factors for each Class of Certificates
      as of such Distribution Date, using a format and media mutually acceptable
      to
      the Securities Administrator and Bloomberg.

     

    SECTION
      5.03. Servicer
      Reports; P&I Advances.

     

    (a) On
      or
      before 12:00 noon New York time on the 18th calendar day of the month, and
      if
      the 18th calendar day is not a Business Day, the immediately following Business
      Day, Ocwen and GMAC shall deliver to the Master Servicer and the Securities
      Administrator by telecopy or electronic mail (or by such other means as the
      related Servicer, the Master Servicer and the Securities Administrator may
      agree
      from time to time) a remittance report containing such information with respect
      to the related Mortgage Loans and the related Distribution Date as is reasonably
      available to the related Servicer as the Master Servicer or the Securities
      Administrator may reasonably require so as to enable the Master Servicer to
      master service the Mortgage Loans and oversee the servicing by the related
      Servicer and the Securities Administrator to fulfill its obligations hereunder
      with respect to securities and tax reporting.

     

    
      
        
        

      

      
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    (b) The
      amount of P&I Advances to be made by Ocwen or GMAC on any Distribution Date
      shall equal, subject to Section 5.03(d), (i) the aggregate amount of Monthly
      Payments (net of the related Servicing Fees), due during the related Due Period
      in respect of the Mortgage Loans serviced by such Servicer, which Monthly
      Payments were delinquent as of the close of business on the related
      Determination Date and (ii) with respect to each REO Property, which was
      acquired during or prior to the related Prepayment Period and as to which an
      REO
      Disposition did not occur during the related Prepayment Period, an amount equal
      to the excess, if any, of the REO Imputed Interest on such REO Property for
      the
      most recently ended calendar month, over the net income from such REO Property
      deposited in the related Collection Account pursuant to Section 3.22 of this
      Agreement for distribution on such Distribution Date; provided, however, the
      Servicer shall not be required to make P&I Advances with respect to Relief
      Act Interest Shortfalls, shortfalls due to bankruptcy proceedings or with
      respect to Prepayment Interest Shortfalls in excess of its obligations under
      Section 3.23. For purposes of the preceding sentence, the Monthly Payment on
      each Balloon Mortgage Loan with a delinquent Balloon Payment is equal to the
      assumed monthly payment that would have been due on the related Due Date based
      on the original principal amortization schedule for such Balloon Mortgage
      Loan.

     

    By
      12:00
      noon New York time on the Servicer Remittance Date, each of Ocwen and GMAC
      shall
      remit in immediately available funds to the Securities Administrator for deposit
      in the Distribution Account an amount equal to the aggregate amount of P&I
      Advances, if any, to be made in respect of the related Mortgage Loans for the
      related Distribution Date either (i) from its own funds or (ii) from the related
      Collection Account, to the extent of any Amounts Held For Future Distribution
      on
      deposit therein (in which case it will cause to be made an appropriate entry
      in
      the records of the related Collection Account that Amounts Held For Future
      Distribution have been, as permitted by this Section 5.03, used by the related
      Servicer in discharge of any such P&I Advance) or (iii) in the form of any
      combination of (i) and (ii) aggregating the total amount of P&I Advances to
      be made by the related Servicer with respect to the Mortgage Loans. In addition,
      the Servicer shall have the right to reimburse itself for any outstanding
      P&I Advance or Servicing Advance made from its own funds from Amounts Held
      for Future Distribution. Each of Ocwen and GMAC will be obligated to advance
      or
      cause to be advanced to the Master Servicer for deposit in the Distribution
      Account, from time to time, from (i) its own funds, (ii) funds in the Collection
      Account that are Amounts Held for Future Distribution or (iii) a combination
      of
      (i) and (ii), Servicing Advances. Any Amounts Held For Future Distribution
      used
      by Ocwen or GMAC to make P&I Advances or Servicing Advances or to reimburse
      itself for outstanding P&I Advances or Servicing Advances shall be
      appropriately reflected in the related Servicer’s records and replaced by the
      related Servicer by deposit in the related Collection Account no later than
      the
      close of business on the Servicer Remittance Date immediately following the
      Due
      Period or Prepayment Period for which such amounts relate. The Securities
      Administrator will notify the related Servicer, the Master Servicer and the
      NIMS
      Insurer by the close of business on the Business Day prior to the Distribution
      Date in the event that the amount remitted by the related Servicer to the
      Securities Administrator on such date is less than the P&I Advances required
      to be made by the related Servicer for the related Distribution
      Date.

     

    In
      addition, the Servicers will be obligated to advance or cause to be advanced
      to
      the Master Servicer, from time to time, from (i) from its own funds or (ii)
      from
      the related Collection Account, to the extent of any Amounts Held For Future
      Distribution on deposit therein (in which case it will cause to be made an
      appropriate entry in the records of the Collection Account that Amounts Held
      For
      Future Distribution have been, as permitted by this Section 5.03, used by
      the related Servicer in discharge of any such Servicing Advance) or (iii) in
      the
      form of any combination of (i) and (ii), Servicing Advances. Any Amounts Held
      For Future Distribution used by a Servicer to make Servicing Advances shall
      be
      appropriately reflected in such Servicer’s records and replaced by such Servicer
      by deposit in the related Collection Account no later than the close of business
      on the Servicer Remittance Date immediately following the Due Period or
      Prepayment Period for which such amounts relate.

     

    
      
        
        

      

      
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    (c) The
      obligation of the Servicers to make such P&I Advances is mandatory,
      notwithstanding any other provision of this Agreement but subject to (d) below,
      and, with respect to any related Mortgage Loan or REO Property, shall continue
      until a Final Recovery Determination in connection therewith or the removal
      thereof from the Trust Fund pursuant to any applicable provision of this
      Agreement, except as otherwise provided in this Section.

     

    (d) Notwithstanding
      anything herein to the contrary, no P&I Advance or Servicing Advance shall
      be required to be made hereunder by the Servicers if such P&I Advance or
      Servicing Advance would, if made, constitute a Nonrecoverable P&I Advance or
      Nonrecoverable Servicing Advance, respectively. The determination by a Servicer
      that it has made a Nonrecoverable P&I Advance or a Nonrecoverable Servicing
      Advance or that any proposed P&I Advance or Servicing Advance, if made,
      would constitute a Nonrecoverable P&I Advance or Nonrecoverable Servicing
      Advance, respectively, shall be evidenced by a certification of a Servicing
      Officer delivered to the Master Servicer and the NIMS Insurer.

     

    (e) Subject
      to and in accordance with the provisions of Article VIII of this Agreement,
      in
      the event Ocwen or GMAC fails to make any required P&I Advance, then the
      Master Servicer (in its capacity as successor Servicer) shall be required to
      make such P&I Advance on the Distribution Date on which Ocwen or GMAC, as
      applicable, was required to make such Advance, subject to its determination
      of
      recoverability. In addition, in the event that Countrywide fails to make a
      required P&I Advance under the Servicing Agreement, the Master Servicer (in
      its capacity as successor Servicer) will be required to make such P&I
      Advance on the Distribution Date on which Countrywide was required to make
      such
      P&I Advance, subject to its determination of recoverability. 

     

    SECTION
      5.04. Allocation
      of Realized Losses.

     

    (a) Prior
      to
      the Determination Date, each Servicer shall determine as to each Mortgage Loan
      serviced by such Servicer and any related REO Property and include in the
      monthly remittance report provided to the Master Servicer and the Securities
      Administrator (substantially in the form of Schedule 4 hereto or as set forth
      in
      the Servicing Agreement) such information as is reasonably available to the
      related Servicer as the Master Servicer or the Securities Administrator may
      reasonably require so as to enable the Master Servicer to master service the
      related Mortgage Loans and oversee the servicing by the related Servicer and
      the
      Securities Administrator to fulfill its obligations hereunder with respect
      to
      securities and tax reporting, which shall include, but not be limited to: (i)
      the total amount of Realized Losses, if any, incurred in connection with any
      Final Recovery Determinations made during the related Prepayment Period; and
      (ii) the respective portions of such Realized Losses allocable to interest
      and
      allocable to principal. Prior to each Determination Date, each Servicer shall
      also determine as to each related Mortgage Loan: (i) the total amount of
      Realized Losses, if any, incurred in connection with any Deficient Valuations
      made during the related Prepayment Period; and (ii) the total amount of Realized
      Losses, if any, incurred in connection with Debt Service Reductions in respect
      of Monthly Payments due during the related Due Period.

     

    
      
        
        

      

      
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    (b) All
      Realized Losses on the Mortgage Loans allocated to any REMIC I Regular Interest
      pursuant to Section 5.04(c) on the Mortgage Loans shall be allocated by the
      Securities Administrator on each Distribution Date as follows: first,
      to Net
      Monthly Excess Cashflow and to Net Swap Payments received from the Swap Provider
      under the Swap Agreement for that purpose; second,
      to the
      Class CE-1 Certificates; third,
      to the
      Class M-9 Certificates, until the Certificate Principal Balance of the Class
      M-9
      Certificates has been reduced to zero; fourth,
      to the
      Class M-8 Certificates, until the Certificate Principal Balance of the Class
      M-8
      Certificates has been reduced to zero; fifth,
      to the
      Class M-7 Certificates, until the Certificate Principal Balance of the Class
      M-7
      Certificates has been reduced to zero; sixth,
      to the
      Class M-6 Certificates, until the Certificate Principal Balance of the Class
      M-6
      Certificates has been reduced to zero; seventh,
      to the
      Class M-5 Certificates, until the Certificate Principal Balance of the Class
      M-5
      Certificates has been reduced to zero; eighth,
      to the
      Class M-4 Certificates, until the Certificate Principal Balance of the Class
      M-4
      Certificates has been reduced to zero, ninth,
      to the
      Class M-3 Certificates, until the Certificate Principal Balance of the Class
      M-3
      Certificates has been reduced to zero; tenth,
      to the
      Class M-2 Certificates, until the Certificate Principal Balance of the Class
      M-2
      Certificates has been reduced to zero, and eleventh,
      to the
      Class M-1 Certificates, until the Certificate Principal Balance of the Class
      M-1
      Certificates has been reduced to zero. All Realized Losses to be allocated
      to
      the Certificate Principal Balances of all Classes on any Distribution Date
      shall
      be so allocated after the actual distributions to be made on such date as
      provided above. All references above to the Certificate Principal Balance of
      any
      Class of Certificates shall be to the Certificate Principal Balance of such
      Class immediately prior to the relevant Distribution Date, before reduction
      thereof by any Realized Losses, in each case to be allocated to such Class
      of
      Certificates, on such Distribution Date.

     

    Any
      allocation of Realized Losses to a Mezzanine Certificate on any Distribution
      Date shall be made by reducing the Certificate Principal Balance thereof by
      the
      amount so allocated; any allocation of Realized Losses to a Class CE-1
      Certificate shall be made by reducing the amount otherwise payable in respect
      thereof pursuant to Section 5.01(c)(8)(ix). No allocations of any Realized
      Losses shall be made to the Certificate Principal Balances of the Class A
      Certificates or Class P Certificates.

     

    As
      used
      herein, an allocation of a Realized Loss on a “pro
      rata
      basis”
among two or more specified Classes of Certificates means an allocation on
      a
pro
      rata
      basis,
      among the various Classes so specified, to each such Class of Certificates
      on
      the basis of their then outstanding Certificate Principal Balances prior to
      giving effect to distributions to be made on such Distribution Date. All
      Realized Losses and all other losses allocated to a Class of Certificates
      hereunder will be allocated among the, Certificates of such Class in proportion
      to the Percentage Interests evidenced thereby.

     

    In
      addition, in the event that any Servicer receives any Subsequent Recoveries
      with
      respect to a Mortgage Loan serviced by it, such Servicer shall deposit such
      funds into the related Collection Account pursuant to Section 3.08 or pursuant
      to the Servicing Agreement. If, after taking into account such Subsequent
      Recoveries, the amount of a Realized Loss is reduced, the amount of such
      Subsequent Recoveries will be applied to increase the Certificate Principal
      Balance of the Class of Mezzanine Certificates with the highest payment priority
      to which Realized Losses have been allocated, but not by more than the amount
      of
      Realized Losses previously allocated to that Class of Mezzanine Certificates
      pursuant to this Section 5.04 and not previously reimbursed to such Class of
      Mezzanine Certificates with Net Monthly Excess Cashflow pursuant to Section
      5.01(c)(8). The amount of any remaining Subsequent Recoveries will be applied
      to
      sequentially increase the Certificate Principal Balance of the Mezzanine
      Certificates, beginning with the Class of Mezzanine Certificates with the next
      highest payment priority, up to the amount of such Realized Losses previously
      allocated to such Class of Mezzanine Certificates pursuant to this Section
      5.04
      and not previously reimbursed to such Class of Mezzanine Certificates with
      Net
      Monthly Excess Cashflow pursuant to Section 5.01(c)(7). Holders of such
      Certificates will not be entitled to any payment in respect of current interest
      on the amount of such increases for any Interest Accrual Period preceding the
      Distribution Date on which such increase occurs. Any such increases shall be
      applied to the Certificate Principal Balance of each Mezzanine Certificate
      of
      such Class in accordance with its respective Percentage Interest.

     

    
      
        
        

      

      
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    (c) All
      Realized Losses on the Mortgage Loans shall be allocated by the Securities
      Administrator, based solely on information received from the Servicers relating
      to the amounts of such Realized Losses, on each Distribution Date to the
      following REMIC I Regular Interests, as follows: to REMIC I Regular Interest
      LT1
      and REMIC I Regular Interest LT1PF until the Uncertificated Balance of each
      such
      REMIC I Regular Interest has been reduced to zero; provided however, with
      respect to the first three Distribution Dates, all Realized Losses on the
      Initial Group I Mortgage Loans shall be allocated to REMIC I Regular Interest
      LT1 until the Uncertificated Balance of each such REMIC I Regular Interest
      has
      been reduced to zero, and all Realized Losses on the Subsequent Group I Mortgage
      Loans shall be allocated to REMIC I Regular Interest LT1PF until the
      Uncertificated Balance thereof has been reduced to zero. All Realized Losses
      on
      the Group II Mortgage Loans shall be allocated by the Securities Administrator
      on each Distribution Date to REMIC I Regular Interest LT2 and REMIC I Regular
      Interest LT2PF until the Uncertificated Balance of each such REMIC I Regular
      Interest has been reduced to zero; provided however, with respect to the first
      three Distribution Dates, all Realized Losses on the Initial Group II Mortgage
      Loans shall be allocated to REMIC I Regular Interest LT2 until the
      Uncertificated Balance of such REMIC I Regular Interest has been reduced to
      zero, and all Realized Losses on the Subsequent Group II Mortgage Loans shall
      be
      allocated to REMIC I Regular Interest LT2PF until the Uncertificated Balance
      thereof has been reduced to zero.

     

    (d) With
      respect to the REMIC II Regular Interests, all Realized Losses on the Group
      I
      Mortgage Loans shall be allocated on each Distribution Date first to REMIC
      II
      Regular Interest I until the Uncertificated Balance of such REMIC II Regular
      Interest has been reduced to zero and second, to REMIC II Regular Interest
      I-1-A
      through REMIC II Regular Interest I-53-B, starting with the lowest numerical
      denomination until such REMIC II Regular Interest has been reduced to zero,
      provided that, for REMIC II Regular Interests with the same numerical
      denomination, such Realized Losses shall be allocated pro
      rata
      between
      such REMIC II Regular Interests.
      All
      Realized Losses on the Group II Mortgage Loans shall be allocated on each
      Distribution Date first, to REMIC II Regular Interest II until the
      Uncertificated Balance of such REMIC II Regular Interest has been reduced to
      zero and second, to REMIC II Regular Interest II-1-A through REMIC II Regular
      Interest II-53-B, starting with the lowest numerical denomination until such
      REMIC II Regular Interest has been reduced to zero, provided that, for REMIC
      II
      Regular Interests with the same numerical denomination, such Realized Losses
      shall be allocated pro
      rata
      between
      such REMIC II Regular Interests. 

     

    
      
        
        

      

      
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    (i) The
      REMIC
      III Marker Allocation Percentage of all Realized Losses on the Mortgage Loans
      shall be allocated by the Securities Administrator, on each Distribution Date
      to
      the following REMIC III Regular Interests in the specified percentages, as
      follows: first, to Uncertificated Interest payable to the REMIC III Regular
      Interest AA and REMIC III Regular Interest ZZ up to an aggregate amount equal
      to
      the REMIC III Interest Loss Allocation Amount, 98.00% and 2.00%, respectively;
      second, to the Uncertificated Balances of the REMIC III Regular Interest AA
      and
      REMIC III Regular Interest ZZ up to an aggregate amount equal to the REMIC
      III
      Principal Loss Allocation Amount, 98.00% and 2.00%, respectively; third, to
      the
      Uncertificated Balances of REMIC III Regular Interest AA, REMIC III Regular
      Interest M-9, and REMIC III Regular Interest ZZ, 98.00%, 1.00% and 1.00%,
      respectively, until the Uncertificated Balance of REMIC III Regular Interest
      M-9
      has been reduced to zero; fourth, to the Uncertificated Balances of REMIC III
      Regular Interest AA, REMIC III Regular Interest M-8 and REMIC III Regular
      Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated
      Balance of REMIC III Regular Interest M-8 has been reduced to zero; fifth,
      to
      the Uncertificated Balances of REMIC III Regular Interest AA, REMIC III Regular
      Interest M-7 and REMIC III Regular Interest ZZ, 98.00%, 1.00% and 1.00%,
      respectively, until the Uncertificated Balance of REMIC III Regular Interest
      M-7
      has been reduced to zero; sixth, to the Uncertificated Balances of REMIC III
      Regular Interest AA, REMIC III Regular Interest M-6 and REMIC III Regular
      Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated
      Balance of REMIC III Regular Interest M-6 has been reduced to zero; seventh,
      to
      the Uncertificated Balances of REMIC III Regular Interest AA, REMIC III Regular
      Interest M-5 and REMIC III Regular Interest ZZ, 98.00%, 1.00% and 1.00%,
      respectively, until the Uncertificated Balance of REMIC III Regular Interest
      M-5
      has been reduced to zero; eighth, to the Uncertificated Balances of REMIC III
      Regular Interest AA, REMIC III Regular Interest M-4 and REMIC III Regular
      Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated
      Balance of REMIC III Regular Interest M-4 has been reduced to zero; ninth,
      to
      the Uncertificated Balances of REMIC III Regular Interest AA, REMIC III Regular
      Interest M-3 and REMIC III Regular Interest ZZ, 98.00%, 1.00% and 1.00%,
      respectively, until the Uncertificated Balance of REMIC III Regular Interest
      M-3
      has been reduced to zero; tenth, to the Uncertificated Balances of REMIC III
      Regular Interest AA, REMIC III Regular Interest M-2 and REMIC III Regular
      Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated
      Balance of REMIC III Regular Interest M-2 has been reduced to zero; and
      eleventh, to the Uncertificated Balances of REMIC III Regular Interest AA,
      REMIC
      III Regular Interest M-1 and REMIC III Regular Interest ZZ, 98.00%, 1.00% and
      1.00%, respectively, until the Uncertificated Balance of REMIC III Regular
      Interest M-1 has been reduced to zero.

     

    
      
        
        

      

      
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    (ii) The
      REMIC
      III Sub WAC Allocation Percentage of all Realized Losses shall be applied after
      all distributions have been made on each Distribution Date first, so as to
      keep
      the Uncertificated Balance of each REMIC III Regular Interest ending with the
      designation “GRP” equal to 0.01% of the aggregate Stated Principal Balance of
      the Mortgage Loans in the related loan group; second, to each REMIC III Regular
      Interest ending with the designation “SUB,” so that the Uncertificated Balance
      of each such REMIC III Regular Interest is equal to 0.01% of the excess of
      (x)
      the aggregate Stated Principal Balance of the Mortgage Loans in the related
      loan
      group over (y) the current Certificate Principal Balance of the Class A
      Certificate in the related loan group (except that if any such excess is a
      larger number than in the preceding distribution period, the least amount of
      Realized Losses shall be applied to such REMIC III Regular Interests such that
      the REMIC III Subordinated Balance Ratio is maintained); and third, any
      remaining Realized Losses shall be allocated to REMIC III Regular Interest
      XX.

     

    SECTION
      5.05. Compliance
      with Withholding Requirements.

     

    Notwithstanding
      any other provision of this Agreement, the Securities Administrator shall comply
      with all federal withholding requirements respecting payments to
      Certificateholders of interest or original issue discount that the Securities
      Administrator reasonably believes are applicable under the Code. The consent
      of
      Certificateholders shall not be required for such withholding. In the event
      the
      Securities Administrator does withhold any amount from interest or original
      issue discount payments or advances thereof to any Certificateholder pursuant
      to
      federal withholding requirements, the Securities Administrator shall indicate
      the amount withheld to such Certificateholders.

     

    SECTION
      5.06. Reports
      Filed with Securities and Exchange Commission.

     

    (a) (i) Within
      15
      days after each Distribution Date (subject to permitted extensions under the
      Exchange Act), the Securities Administrator shall prepare and file on behalf
      of
      the Trust any Form 10-D required by the Exchange Act, in form and substance
      as
      required by the Exchange Act. The Securities Administrator shall file each
      Form
      10-D with a copy of the related Monthly Statement attached thereto. Any
      disclosure in addition to the Monthly Statement that is required to be included
      on Form 10-D (“Additional Form 10-D Disclosure”) shall be reported by the
      parties set forth on Exhibit G to the Depositor and the Securities Administrator
      and directed and approved by the Depositor pursuant to the following paragraph,
      and the Securities Administrator will have no duty or liability for any failure
      hereunder to determine or prepare any Additional Form 10-D Disclosure, except
      as
      set forth in the next paragraph. 

     

    (ii) As
      set
      forth on Exhibit G hereto, within 5 calendar days after the related Distribution
      Date, (A) certain parties to the ACE Securities Corp. Home Equity Loan Trust,
      Series 2007-HE4 transaction shall be required to provide to the Securities
      Administrator and the Depositor, to the extent known by a responsible officer
      thereof, in EDGAR-compatible form, or in such other form as otherwise agreed
      upon by the Securities Administrator and such party, the form and substance
      of
      any Additional Form 10-D Disclosure, if applicable, together with an Additional
      Disclosure Notification in the form of Exhibit  H hereto (an “Additional
      Disclosure Notification”) and (B) the Depositor will approve, as to form and
      substance, or disapprove, as the case may be, the inclusion of the Additional
      Form 10-D Disclosure on Form 10-D. The Depositor will be responsible for any
      reasonable fees and expenses assessed or incurred by the Securities
      Administrator in connection with including any Additional Form 10-D Disclosure
      on Form 10-D pursuant to this paragraph. 

     

    
      
        
        

      

      
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    (iii) After
      preparing the Form 10-D, the Securities Administrator shall upon request,
      forward electronically a copy of the Form 10-D to the Depositor (provided that
      such Form 10-D includes any Additional Form 10-D Disclosure). Within two (2)
      Business Days after receipt of such copy but no later than the 12th
      calendar
      day after the Distribution Date, the Depositor shall notify the Securities
      Administrator in writing (which may be furnished electronically) of any changes
      to or approval of such Form 10-D. In the absence of receipt of any written
      changes or approval by the due date specified herein, or if the Depositor does
      not request a copy of a Form 10-D, the Securities Administrator shall be
      entitled to assume that such Form 10-D is in final form and the Securities
      Administrator may proceed with the execution and filing of the Form 10-D. A
      duly
      authorized representative of the Master Servicer shall sign the Form 10-D.
      If a
      Form 10-D cannot be filed on time or if a previously filed Form 10-D needs
      to be
      amended, the Securities Administrator will follow the procedures set forth
      in
      Section 5.06(c)(ii). Promptly (but no later than 1 Business Day) after filing
      with the Commission, the Securities Administrator will make available on its
      internet website a final executed copy of each Form 10-D prepared and filed
      by
      the Securities Administrator. Each party to this Agreement acknowledges that
      the
      performance by the Securities Administrator and the Master Servicer of their
      duties under this Section 5.06(a) related to the timely preparation, execution
      and filing of Form 10-D is contingent upon such parties strictly observing
      all
      applicable deadlines in the performance of their duties as set forth in this
      Agreement. Neither the Master Servicer nor the Securities Administrator shall
      have any liability for any loss, expense, damage, claim arising out of or with
      respect to any failure to properly prepare, execute and/or timely file such
      Form
      10-D, where such failure results from the Securities Administrator’s inability
      or failure to receive, on a timely basis, any information from any other party
      hereto needed to prepare, arrange for execution or file such Form 10-D, not
      resulting from its own negligence, bad faith or willful misconduct.

     

    (b) (i) Within
      four (4) Business Days after the occurrence of an event requiring disclosure
      on
      Form 8-K (each such event, a “Reportable Event”), and if requested by the
      Depositor, the Securities Administrator shall prepare and file on behalf of
      the
      Trust a Form 8-K, as required by the Exchange Act, provided that the Depositor
      shall file the initial Form 8-K in connection with the issuance of the
      Certificates. Any disclosure or information related to a Reportable Event or
      that is otherwise required to be included on Form 8-K other than the initial
      Form 8-K (“Form 8-K Disclosure Information”) shall be reported by the parties
      set forth on Exhibit G to the Depositor and the Securities Administrator and
      directed and approved by the Depositor pursuant to the following paragraph,
      and
      the Securities Administrator will have no duty or liability for any failure
      hereunder to determine or prepare any Form 8-K Disclosure Information or any
      Form 8-K, except as set forth in the next paragraph. 

     

    (ii) As
      set
      forth on Exhibit G hereto, for so long as the Trust is subject to the Exchange
      Act reporting requirements, no later than the close of business New York City
      time on the 2nd Business Day after the occurrence of a Reportable Event (i)
      the
      parties to the ACE Securities Corp. Home Equity Loan Trust, Series 2007-HE4
      transaction shall be required to provide to the Securities Administrator and
      Depositor, to the extent known by a responsible officer thereof, in
      EDGAR-compatible form, or in such other form as otherwise agreed upon by the
      Securities Administrator and such party, the form and substance of any Form
      8-K
      Disclosure Information, if applicable, together with an Additional Disclosure
      Notification and (ii) the Depositor will approve, as to form and substance,
      or
      disapprove, as the case may be, the inclusion of the Form 8-K Disclosure
      Information. The Depositor will be responsible for any reasonable fees and
      expenses assessed or incurred by the Securities Administrator in connection
      with
      including any Form 8-K Disclosure Information on Form 8-K pursuant to this
      paragraph. 

     

    
      
        
        

      

      
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    (iii) After
      preparing the Form 8-K, the Securities Administrator shall upon request, forward
      electronically a copy of the Form 8-K to the Depositor. Promptly, but no later
      than the close of business on the third Business Day after the Reportable Event,
      the Depositor shall notify the Securities Administrator in writing (which may
      be
      furnished electronically) of any changes to or approval of such Form 8-K. In
      the
      absence of receipt of any written changes or approval by the third Business
      Day,
      or if the Depositor does not request a copy of a Form 8-K, the Securities
      Administrator shall be entitled to assume that such Form 8-K is in final form
      and the Securities Administrator may proceed with the execution and filing
      of
      the Form 8-K. A duly authorized representative of the Master Servicer shall
      sign
      each Form 8-K. If a Form 8-K cannot be filed on time or if a previously filed
      Form 8-K needs to be amended, the Securities Administrator will follow the
      procedures set forth in Section 5.06(c)(ii). Promptly (but no later than 1
      Business Day) after filing with the Commission, the Securities Administrator
      will, make available on its internet website a final executed copy of each
      Form
      8-K that has been prepared and filed by the Securities Administrator. The
      parties to this Agreement acknowledge that the performance by the Master
      Servicer and the Securities Administrator of their duties under this Section
      5.06(b) related to the timely preparation, execution and filing of Form 8-K
      is
      contingent upon such parties strictly observing all applicable deadlines in
      the
      performance of their duties under this Agreement. Neither the Master Servicer
      nor the Securities Administrator shall have any liability for any loss, expense,
      damage, claim arising out of or with respect to any failure to properly prepare,
      execute and/or timely file such Form 8-K, where such failure results from the
      Securities Administrator’s inability or failure to receive, on a timely basis,
      any information from any other party hereto needed to prepare, execute or
      arrange for execution or file such Form 8-K, not resulting from its own
      negligence, bad faith or willful misconduct.

     

    (c) (i) On
      or
      prior to January 30th of the first year in which the Securities Administrator
      is
      able to do so under applicable law, the Securities Administrator shall prepare
      and file a Form 15 suspension notification relating to the automatic suspension
      of reporting in respect of the Trust under the Exchange Act. 

     

    (ii) In
      the
      event that the Securities Administrator is unable to timely file with the
      Commission all or any required portion of any Form 8-K, 10-D or 10-K required
      to
      be filed by this Agreement because required disclosure information was either
      not delivered to it or delivered to it after the delivery deadlines set forth
      in
      this Agreement or for any other reason, the Securities Administrator will
      promptly electronically notify the Depositor. In the case of Form 10-D and
      10-K,
      the parties to this Agreement will cooperate to prepare and file a Form 12b-25
      and a 10-DA and 10-KA as applicable, pursuant to Rule 12b-25 of the Exchange
      Act. In the case of Form 8-K, the Securities Administrator will, upon receipt
      of
      all required Form 8-K Disclosure Information and upon the approval and direction
      of the Depositor, include such disclosure information on the next Form 10-D.
      In
      the event that any previously filed Form 8-K, 10-D or 10-K needs to be amended
      and such amendment includes any Additional Form 10-D Disclosure (other than
      for
      the purposes of restating any Monthly Report), any Additional Form 10-K
      Disclosure or any Form 8-K Disclosure Information or any amendment to such
      disclosure, the Securities Administrator will electronically notify the
      Depositor only if the amendment pertains to an additional reporting item being
      revised and/or amended on such form, but not if an amendment is being filed
      as a
      result of a Remittance Report revision, and the Depositor will cooperate with
      the Securities Administrator in preparing any necessary 8-KA, 10-DA or 10-KA.
      Any Form 15, Form 12b-25 or any amendment to Form 8-K, 10-D or 10-K shall be
      signed by a duly authorized representative, or senior officer in charge of
      master servicing, as applicable, of the Master Servicer. The parties to this
      Agreement acknowledge that the performance by the Securities Administrator
      and
      the Master Servicer of their duties under this Section 5.06(c) related to the
      timely preparation, execution and filing of Form 15, a Form 12b-25 or any
      amendment to Form 8-K, 10-D or 10-K is contingent upon each such party
      performing its duties under this Agreement. Neither the Master Servicer nor
      the
      Securities Administrator shall have any liability for any loss, expense, damage,
      claim arising out of or with respect to any failure to properly prepare, execute
      and/or timely file any such Form 15, Form 12b-25 or any amendments to Forms
      8-K,
      10-D or 10-K, where such failure results from the Securities Administrator’s
      inability or failure to receive, on a timely basis, any information from any
      other party hereto needed to prepare, execute or arrange for execution or file
      such Form 15, Form 12b-25 or any amendments to Forms 8-K, 10-D or 10-K, not
      resulting from its own negligence, bad faith or willful misconduct.

     

    
      
        
        

      

      
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    (d) (i) On
      or
      prior to the 90th
      day
      after the end of each fiscal year of the Trust or such earlier date as may
      be
      required by the Exchange Act (the “10-K Filing Deadline”) (it being understood
      that the fiscal year for the Trust ends on December 31st of each year),
      commencing in March 2008, the Securities Administrator shall prepare and file
      on
      behalf of the Trust a Form 10-K, in form and substance as required by the
      Exchange Act. Each such Form 10-K shall include the following items, in each
      case to the extent they have been delivered to the Securities Administrator
      within the applicable time frames set forth in this Agreement, the related
      servicing agreement and custodial agreements, (i) an annual compliance statement
      for the Servicer, each Additional Servicer, the Master Servicer and the
      Securities Administrator and any Servicing Function Participant engaged by
      such
      parties (each, a “Reporting Servicer”) as described under Section 3.17 and
      Section 4.15 and in such other agreements, (ii)(A) the annual reports on
      assessment of compliance with servicing criteria for each Reporting Servicer,
      as
      described under Section 3.18 and Section 4.16 and in such other agreements,
      and
      (B) if each Reporting Servicer’s report on assessment of compliance with
      servicing criteria described under Section 3.18 and Section 4.16 identifies
      any
      material instance of noncompliance, disclosure identifying such instance of
      noncompliance, or if each Reporting Servicer’s report on assessment of
      compliance with servicing criteria described under Section 3.18 and Section
      4.16
      is not included as an exhibit to such Form 10-K, disclosure that such report
      is
      not included and an explanation why such report is not included, (iii)(A) the
      registered public accounting firm attestation report for each Reporting
      Servicer, as described under Section 3.18 and Section 4.17, or in such other
      agreement and (B) if any registered public accounting firm attestation report
      described under Section 3.18 and Section 4.17 identifies any material instance
      of noncompliance, disclosure identifying such instance of noncompliance, or
      if
      any such registered public accounting firm attestation report is not included
      as
      an exhibit to such Form 10-K, disclosure that such report is not included and
      an
      explanation why such report is not included, and (iv) a Sarbanes-Oxley
      Certification as described in Section 3.20 and Section 4.18 (provided, however,
      that the Securities Administrator, at its discretion, may omit from the Form
      10-K any annual compliance statement, assessment of compliance or attestation
      report that is not required to be filed with such Form 10-K pursuant to
      Regulation AB). Any disclosure or information in addition to (i) through (iv)
      above that is required to be included on Form 10-K (“Additional Form 10-K
      Disclosure”) shall be reported by the parties set forth on Exhibit G to the
      Depositor and the Securities Administrator and directed and approved by the
      Depositor pursuant to the following paragraph, and the Securities Administrator
      will have no duty or liability for any failure hereunder to determine or prepare
      any Additional Form 10-K Disclosure, except as set forth in the next
      paragraph.

     

    
      
        
        

      

      
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    (ii) As
      set
      forth on Exhibit G hereto, no later than March 15 of each year that the Trust
      is
      subject to the Exchange Act reporting requirements, commencing in 2008, (i)
      parties to the ACE Securities Corp. Home Equity Loan Trust, Series 2007-HE4
      transaction shall be required to provide to the Securities Administrator and
      Depositor, to the extent known, by a responsible officer thereof, in
      EDGAR-compatible form, or in such other form as otherwise agreed upon by the
      Securities Administrator and such party, the form and substance of any
      Additional Form 10-K Disclosure, if applicable, together with an Additional
      Disclosure Notification and (ii) the Depositor will approve, as to form and
      substance, or disapprove, as the case may be, the inclusion of the Additional
      Form 10-K Disclosure on Form 10-K. The Depositor will be responsible for any
      reasonable fees and expenses assessed or incurred by the Securities
      Administrator in connection with including any Additional Form 10-K Disclosure
      on Form 10-K pursuant to this paragraph.

     

    (iii) After
      preparing the Form 10-K, the Securities Administrator shall upon request,
      forward electronically a copy of the Form 10-K to the Depositor. Within three
      (3) Business Days after receipt of such copy, but in no event later than March
      25th
      of each
      year that the Trust is subject to Exchange Act reporting requirements, the
      Depositor shall notify the Securities Administrator in writing (which may be
      furnished electronically) of any changes to or approval of such Form 10-K.
      In
      the absence of receipt of any written changes or approval by March 25th, or
      if
      the Depositor does not request a copy of a Form 10-K, the Securities
      Administrator shall be entitled to assume that such Form 10-K is in final form
      and the Securities Administrator may proceed with the execution and filing
      of
      the Form 10-K. A senior officer of the Master Servicer in charge of the master
      servicing function shall sign the Form 10-K. If a Form 10-K cannot be filed
      on
      time or if a previously filed Form 10-K needs to be amended, the Securities
      Administrator will follow the procedures set forth in Section 5.06(c)(ii).
      Promptly (but no later than 1 Business Day) after filing with the Commission,
      the Securities Administrator will make available on its internet website a
      final
      executed copy of each Form 10-K prepared and filed by the Securities
      Administrator. The parties to this Agreement acknowledge that the performance
      by
      the Master Servicer and the Securities Administrator of their respective duties
      under this Section 5.06(d) related to the timely preparation, execution and
      filing of Form 10-K is contingent upon such parties (and any Additional Servicer
      or Servicing Function Participant) strictly observing all applicable deadlines
      in the performance of their duties under this Section 5.06(d), Section 3.17,
      Section 3.18, Section 3.20, Section 4.16, Section 4.17 and Section 4.18. Neither
      the Master Servicer nor the Securities Administrator shall have any liability
      for any loss, expense, damage or claim arising out of or with respect to any
      failure to properly prepare, execute and/or timely file such Form 10-K, where
      such failure results from the Securities Administrator’s inability or failure to
      receive, on a timely basis, any information from any other party hereto needed
      to prepare, arrange for execution or file such Form 10-K, not resulting from
      its
      own negligence, bad faith or willful misconduct.

     

    
      
        
        

      

      
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    (e) Each
      of
      Form 10-D and Form 10-K requires the registrant to indicate (by checking “yes”
or “no”) that it “(1) has filed all reports required to be filed by Section 13
      or 15(d) of the Exchange Act during the preceding 12 months (or for such shorter
      period that the registrant was required to file such reports), and (2) has
      been
      subject to such filing requirements for the past 90 days.” The Depositor hereby
      represents to the Securities Administrator that the Depositor has filed all
      such
      required reports during the preceding 12 months and that it has been subject
      to
      such filing requirement for the past 90 days. The Depositor shall notify the
      Securities Administrator in writing, no later than the fifth calendar day after
      the related Distribution Date with respect to the filing of a report on Form
      10-D and no later than March 15th with respect to the filing of a report on
      Form
      10-K, if the answer to the question should be “no” as a result of filings that
      relate to other securitization transactions of the Depositor for which the
      Securities Administrator does not have the obligation to prepare and file
      Exchange Act reports.

     

    (f) The
      Securities Administrator shall indemnify and hold harmless the Depositor, the
      Trustee and their respective officers, directors and Affiliates from and against
      any losses, damages, penalties, fines, forfeitures, reasonable and necessary
      legal fees and related costs, judgments and other costs and expenses arising
      out
      of or based upon a breach of the Master Servicer’s obligations under this
      Section 5.06 or the Master Servicer’s negligence, bad faith or willful
      misconduct in connection therewith. 

     

    (g) Notwithstanding
      the provisions of Section 12.01, this Section 5.06 may be amended without the
      consent of the Certificateholders.

     

    SECTION
      5.07. Supplemental
      Interest Trust.

     

    (a) On
      the
      Closing Date, the Securities Administrator shall establish and maintain in
      the
      name of the Trustee a separate account for the benefit of the holders of the
      Offered Certificates (the “Supplemental Interest Trust”). The Supplemental
      Interest Trust shall be an Eligible Account, and funds on deposit therein shall
      be held separate and apart from, and shall not be commingled with, any other
      moneys, including, without limitation, other moneys of the Trustee or of the
      Securities Administrator held pursuant to this Agreement. 

     

    (b) On
      the
      Business Day prior to each Distribution Date, the Securities Administrator
      shall
      deposit into the Supplemental Interest Trust amounts distributable to the Swap
      Provider by the Supplemental Interest Trust pursuant to Section 5.01(c)(2),
      (3), (5) and (6) and Section 5.01(c)(7)(viii)
      of this
      Agreement and shall distribute such amounts on the Business Day prior to such
      Distribution Date in accordance with the foregoing sections.

     

    (c) On
      the
      Business Day prior to each Distribution Date, the Securities Administrator
      shall
      deposit into the Supplemental Interest Trust amounts received by it from the
      Swap Provider and shall distribute from the Supplemental Interest Trust on
      the
      Distribution Date an amount equal to the amount of any Net Swap Payment received
      from the Swap Provider under the Swap Agreement in the order of priority set
      forth in Section 5.01.

     

    
      
        
        

      

      
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    (d) The
      Supplemental Interest Trust constitutes an “outside reserve fund” within the
      meaning of Treasury Regulation § 1.860G-2(h) and is not an asset of any REMIC.
      The Holders of the Class CE-1 Certificates shall be the beneficial owner of
      the
      Supplemental Interest Trust, subject to the power of the Securities
      Administrator to transfer amounts under this Agreement. The Securities
      Administrator shall keep records that accurately reflect the funds on deposit
      in
      the Supplemental Interest Trust. The Securities Administrator shall, at the
      written direction of the majority of the Class CE-1 Certificateholders, invest
      amounts on deposit in the Supplemental Interest Trust in Permitted Investments.
      In the absence of written direction to the Securities Administrator from the
      majority of the Class CE-1 Certificateholders, all funds in the Supplemental
      Interest Trust shall remain uninvested. On each Distribution Date, the
      Securities Administrator shall distribute, not in respect of any REMIC, any
      interest earned on the Supplemental Interest Trust to the Holders of the Class
      CE-1 Certificates.

     

    (e) For
      federal income tax purposes, amounts paid to the Supplemental Interest Trust
      on
      each Distribution Date pursuant to Section 5.01(c)(2), (3), (5) and (6) and
      Section 5.01(c)(7)(vii) shall first be deemed paid to the Supplemental
      Interest Trust in respect of the Class IO Interest to the extent of the amount
      distributable on such Class IO Interest on such Distribution Date, and any
      remaining amount shall be deemed paid to the Supplemental Interest Trust in
      respect of a Class IO Distribution Amount. It is the intention of the parties
      hereto that, for federal and state income and state and local franchise tax
      purposes, the Supplemental Interest Trust be disregarded as an entity separate
      from the Holder of the Class CE-1 Certificates unless and until the date when
      either (a) there is more than one Class CE-1 Certificateholder or (b) any Class
      of Certificates in addition to the Class CE-1 Certificates is recharacterized
      as
      an equity interest in the Supplemental Interest Trust for federal income tax
      purposes, in which case it is the intention of the parties hereto that, for
      federal and state income and state and local franchise tax purposes, the
      Supplemental Interest Trust be treated as a partnership. The Master Servicer
      shall not be required to prepare and file partnership tax returns in respect
      of
      such partnership unless it receives additional reasonable compensation (not
      to
      exceed $10,000 per year) for the preparation of such filings, written
      notification recognizing the creation of a partnership agreement or comparable
      documentation evidencing the partnership.

     

    (f) The
      Securities Administrator shall treat the Holders of Certificates (other than
      the
      Class P, Class CE-1, Class CE-2 and Class R Certificates) as having entered
      into
      a notional principal contract with respect to the Holders of the Class CE-1
      Certificates. Pursuant to each such notional principal contract, all Holders
      of
      Certificates (other than the Class P, Class CE-1, Class CE-2 and Class R
      Certificates) shall be treated as having agreed to pay, on each Distribution
      Date, to the Holder of the Class CE-1 Certificates an aggregate amount equal
      to
      the excess, if any, of (i) the amount payable on such Distribution Date on
      the
      REMIC IV Regular Interest ownership of which is represented by such Class of
      Certificates over (ii) the amount payable on such Class of Certificates on
      such
      Distribution Date (such excess, a “Class IO Distribution Amount”). A Class IO
      Distribution Amount payable from interest collections shall be allocated pro
      rata among such Certificates based on the amount of interest otherwise payable
      to such Certificates, and a Class IO Distribution Amount payable from principal
      collections shall be allocated to the most subordinate Class of such
      Certificates with an outstanding principal balance to the extent of such
      balance. In addition, pursuant to such notional principal contract, the Holder
      of the Class CE-1 Certificates shall be treated as having agreed to pay Net
      WAC
      Rate Carryover Amounts to the Holders of the Certificates (other than the Class
      CE-1, Class CE-2, Class P and Class R Certificates) in accordance with the
      terms
      of this Agreement. Any payments to such Certificates from amounts deemed
      received in respect of this notional principal contract shall not be payments
      with respect to a Regular Interest in a REMIC within the meaning of Code Section
      860G(a)(1). However, any payment from the Certificates (other than the Class
      CE-1, Class CE-2, Class P and Class R Certificates) of a Class IO Distribution
      Amount shall be treated for tax purposes as having been received by the Holders
      of such Certificates in respect of the REMIC IV Regular Interest ownership
      of
      which is represented by such Certificates, and as having been paid by such
      Holders to the Supplemental Interest Trust pursuant to the notional principal
      contract. Thus, each Certificate (other than the Class P Certificates and Class
      R Certificates) shall be treated as representing not only ownership of a Regular
      Interest in REMIC IV, but also ownership of an interest in, and obligations
      with
      respect to, a notional principal contract.

     

    
      
        
        

      

      
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    (g) For
      federal tax return and information reporting, the right of the Class A
      Certificateholders and the Mezzanine Certificateholders to receive payments
      from
      the Supplemental Interest Trust and the Reserve Fund in respect of any Net
      WAC
      Rate Carryover Amount shall be assigned a value of $12,000.

     

    (h) Upon
      a
      Swap Early Termination other than in connection with the optional termination
      of
      the trust, the Securities Administrator on behalf of the Supplemental Interest
      Trust, at the direction f the Depositor, will use reasonable efforts to appoint
      a successor swap provider to enter into a new interest rate swap agreement
      on
      terms substantially similar to the Swap Agreement, with a successor swap
      provider meeting all applicable eligibility requirements. If the Securities
      Administrator receives a Swap Termination Payment from the Swap Provider in
      connection with such Swap Early Termination, the Securities Administrator will
      apply such Swap Termination Payment to any upfront payment required to appoint
      the successor swap provider. If the Securities Administrator is required to
      pay
      a Swap Termination Payment to the Swap Provider in connection with such Swap
      Early Termination, the Securities Administrator will apply any upfront payment
      received from the successor swap provider to pay such Swap Termination Payment.
      

     

    If
      the
      Securities Administrator is unable to appoint a successor swap provider within
      30 days of the Swap Early Termination, then the Securities Administrator will
      deposit any Swap Termination Payment received from the original Swap Provider
      into a separate, non-interest bearing reserve account and will, on each
      subsequent Distribution Date, withdraw from the amount then remaining on deposit
      in such reserve account an amount equal to the Net Swap Payment, if any, that
      would have been paid to the Securities Administrator by the original Swap
      Provider calculated in accordance with the terms of the original Swap Agreement,
      and distribute such amount in accordance with the terms of this
      Agreement.

    

    (i) In
      the
      event that the Swap Provider fails to perform any of its obligations under
      the
      Swap Agreement (including, without limitation, its obligation to make any
      payment or transfer collateral), or breaches any of its representations and
      warranties thereunder, or in the event that an Event of Default, Termination
      Event, or Additional Termination Event (each as defined in the Swap Agreement)
      occurs with respect to the Swap Agreement, the Securities Administrator on
      behalf of the Supplemental Interest Trust Trustee shall immediately, but no
      later than the next Business Day following such failure or breach, notify the
      Depositor and send any notices and make any demands, on behalf of the
      Supplemental Interest Trust, in accordance with the Swap Agreement.

     

    
      
        
        

      

      
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    (j) In
      the
      event that the Swap Provider’s obligations are guaranteed by a third party under
      a guaranty relating to the Swap Agreement (such guaranty the “Guaranty” and such
      third party the “Guarantor”), then to the extent that the Swap Provider fails to
      make any payment by the close of business on the day it is required to make
      payment under the terms of the Swap Agreement, the Securities Administrator
      on
      behalf of the Supplemental Interest Trust Trustee shall, as soon as practicable,
      but no later than two (2) business days after the Swap Provider’s failure to
      pay, demand that the Guarantor make any and all payments then required to be
      made by the Guarantor pursuant to such Guaranty; provided, that the Securities
      Administrator shall in no event be liable for any failure or delay in the
      performance by the Swap Provider or any Guarantor of its obligations hereunder
      or pursuant to the Swap Agreement and the Guaranty, nor for any special,
      indirect or consequential loss or damage of any kind whatsoever (including
      but
      not limited to lost profits) in connection therewith.

     

    SECTION
      5.08. Tax
      Treatment of Swap Payments and Swap Termination Payments.

     

    (a) For
      federal income tax purposes, each holder of an Offered Certificate is deemed
      to
      own an undivided beneficial ownership interest in a REMIC Regular Interest
      and
      the right to receive payments from either the Reserve Fund or the Supplemental
      Interest Trust in respect of any Net WAC Rate Carryover Amounts or the
      obligation to make payments to the Supplemental Interest Trust. For federal
      income tax purposes, the Securities Administrator will account for payments
      to
      each Offered Certificate as follows: each Offered Certificate will be treated
      as
      receiving their entire payment from REMIC IV (regardless of any Swap Termination
      Payment or obligation under the Swap Agreement) and subsequently paying their
      portion of any Swap Termination Payment in respect of each such Class’s
      obligation under the Swap Agreement. In the event that any such Class is
      resecuritized in a REMIC, the obligation under the Swap Agreement to pay any
      such Swap Termination Payment (or any shortfall in Net Swap Payment), will
      be
      made by one or more of the REMIC Regular Interests issued by the
      resecuritization REMIC subsequent to such REMIC Regular Interest receiving
      its
      full payment from any such Offered Certificate.

     

    (b) The
      REMIC
      Regular Interest corresponding to an Offered Certificate will be entitled to
      receive interest and principal payments at the times and in the amounts equal
      to
      those made on the certificate to which it corresponds, except that (i) the
      maximum interest rate of that REMIC regular interest will equal the Net WAC
      Pass-Through Rate computed for this purpose by limiting the Swap Notional Amount
      of the Swap Agreement to the aggregate Stated Principal Balance of the Mortgage
      Loans and (ii) any Swap Termination Payment will be treated as being payable
      solely from amounts otherwise payable to the Class CE-1 Certificates. As a
      result of the foregoing, the amount of distributions and taxable income on
      the
      REMIC Regular Interest corresponding to an Offered Certificate may exceed the
      actual amount of distributions on the Offered Certificate.

     

    
      
        
        

      

      
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    SECTION
      5.09. Swap
      Collateral Account.

     

    The
      Securities Administrator is hereby directed to perform the obligations of the
      Custodian as defined under the Swap Credit Support Annex (the “Swap Custodian”).

    

    On
      or
      before the Closing Date, the Swap Custodian shall establish a Swap Collateral
      Account. The Swap Collateral Account shall be held in the name of the Swap
      Custodian in trust for the benefit of the Offered Certificates. The Swap
      Collateral Account shall be an Eligible Account and shall be entitled “Swap
      Collateral Account, Wells Fargo Bank, National Association for the benefit
      of
      holders of ACE Securities Corp. Home Equity Loan Trust, Series 2007-HE4, Asset
      Backed Pass-Through Certificates.” 

    

    The
      Swap
      Custodian shall credit to the Swap Collateral Account all collateral (whether
      in
      the form of cash or securities) posted by the Swap Provider to secure the
      obligations of the Swap Provider in accordance with the terms of the Swap
      Agreement. Except for investment earnings, the Swap Provider shall not have
      any
      legal, equitable or beneficial interest in the Swap Collateral Account other
      than in accordance with the Swap Agreement and applicable law. The Swap
      Custodian shall maintain and apply all collateral and earnings thereon on
      deposit in the Swap Collateral Account in accordance with Swap Credit Support
      Annex.

    

    Cash
      collateral posted by the Swap Provider in accordance with the Swap Credit
      Support Annex shall be invested at the direction of the Swap Provider in
      Permitted Investments in accordance with the requirements of the Swap Credit
      Support Annex. All amounts earned on amounts on deposit in the Swap Collateral
      Account (whether cash collateral or securities) shall be for the account of
      and
      taxable to the Swap Provider. If no investment direction is provided, funds
      will
      be held univested.

    

    Upon
      the
      occurrence of an Event of Default or Specified Condition (each as defined in
      the
      Swap Agreement) with respect to the Swap Provider or upon occurrence or
      designation of an Early Termination Date (as defined in the Swap Agreement)
      as a
      result of any such Event of Default or Specified Condition with respect to
      the
      Swap Provider, and, in either such case, unless the Swap Provider has paid
      in
      full all of its Obligations (as defined in the Swap Credit Support Annex) that
      are then due, then any collateral posted by the Swap Provider in accordance
      with
      the Swap Credit Support Annex shall be applied to the payment of any Obligations
      due to Party B (as defined in the Swap Agreement) in accordance with the Swap
      Credit Support Annex. Any excess amounts held in such Swap Collateral Account
      after payment of all amounts owing to Party B under the Swap Agreement shall
      be
      withdrawn from the Swap Collateral Account and paid to the Swap Provider in
      accordance with the Swap Credit Support Annex. 

     

    SECTION
      5.10. Cap
      Collateral Account

     

    The
      Securities Administrator is hereby directed to perform the obligations of the
      Custodian as defined under the Cap Credit Support Annex (the “Cap Custodian”).

     

    
      
        
        

      

      
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    Upon
      the
      occurrence of an Event of Default or Specified Condition (each as defined in
      the
      Cap Contracts), the Cap Custodian shall establish a Cap Collateral Account
      with
      respect to each of the Cap Contracts (the “Cap Collateral Account”). The Cap
      Collateral Account shall be held in the name of the Cap Custodian in trust
      for
      the benefit of the Class A Certificates and Mezzanine Certificates. The Cap
      Collateral Account shall be an Eligible Account and shall be entitled “Cap
      Collateral Account, Wells Fargo Bank, National Association for the benefit
      of
      holders of ACE Securities Corp. Home Equity Loan Trust, Series 2007-HE4, Class
      A, Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class
      M-7,
      Class M-8 and Class M-9.”

     

    The
      Cap
      Custodian shall credit to the Cap Collateral Account all collateral (whether
      in
      the form of cash or securities) posted by the Cap Counterparty to secure the
      obligations of the Cap Counterparty in accordance with the terms of the related
      Cap Contract. Except for investment earnings, the Cap Counterparty shall not
      have any legal, equitable or beneficial interest in the Cap Collateral Account
      other than in accordance with the related Cap Contract and applicable law.
      The
      Cap Custodian shall maintain and apply all collateral and earnings thereon
      on
      deposit in any Cap Collateral Account in accordance with the Cap Credit Support
      Annex. 

     

    Cash
      collateral posted by the Cap Counterparty in accordance with the related Cap
      Credit Support Annex shall be invested at the direction of the Cap Counterparty
      in Permitted Investments in accordance with the requirements of the Cap Credit
      Support Annex. All amounts earned on amounts on deposit in a Cap Collateral
      Account (whether cash collateral or securities) shall be for the account of
      and
      taxable to the Cap Counterparty. If no investment direction is provided, funds
      will be held uninvested.

     

    Upon
      the
      occurrence of an Event of Default or a Specified Condition (each as defined
      in
      the related Cap Contract) with respect to the Cap Counterparty or upon
      occurrence or designation of an Early Termination Date (as defined in the
      related Cap Contract) as a result of any such Event of Default or Specified
      Condition with respect to the Cap Counterparty, and, in either such case, unless
      the Cap Counterparty has paid in full all of its Obligations (as defined in
      the
      related Cap Credit Support Annex) that are then due, then any collateral posted
      by the Cap Counterparty in accordance with the related Cap Credit Support Annex
      shall be applied to the payment of any Obligations due to Party B (as defined
      in
      the related Cap Contract) in accordance with the related Cap Credit Support
      Annex. Any excess amounts held in such Cap Collateral Account after payment
      of
      all amounts owing to Party B under the related Cap Contract shall be withdrawn
      from the Cap Collateral Account and paid to the Cap Counterparty in accordance
      with the related Cap Credit Support Annex.

     

    
      
        
        

      

      
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    ARTICLE
      VI

     

    THE
      CERTIFICATES

     

    SECTION
      6.01. The
      Certificates.

     

    (a) The
      Certificates in the aggregate will represent the entire beneficial ownership
      interest in the Mortgage Loans and all other assets included in REMIC I, REMIC
      II, REMIC III or REMIC IV.

     

    The
      Certificates will be substantially in the forms annexed hereto as Exhibits
      A-1
      through A-5. The Certificates of each Class will be issuable in registered
      form
      only, in denominations of authorized Percentage Interests as described in the
      definition thereof. Each Certificate will share ratably in all rights of the
      related Class.

     

    Upon
      original issue, the Certificates shall be executed and authenticated by the
      Securities Administrator and delivered by the Trustee to and upon the written
      order of the Depositor. The Certificates shall be executed by manual or
      facsimile signature on behalf of the Trust by the Securities Administrator
      by an
      authorized signatory. Certificates bearing the manual or facsimile signatures
      of
      individuals who were at any time the proper officers of the Securities
      Administrator shall bind the Trust, notwithstanding that such individuals or
      any
      of them have ceased to hold such offices prior to the authentication and
      delivery of such Certificates or did not hold such offices at the date of such
      Certificates. No Certificate shall be entitled to any benefit under this
      Agreement or be valid for any purpose, unless there appears on such Certificate
      a certificate of authentication substantially in the form provided herein
      executed by the Securities Administrator by manual signature, and such
      certificate of authentication shall be conclusive evidence, and the only
      evidence, that such Certificate has been duly authenticated and delivered
      hereunder. All Certificates shall be dated the date of their
      authentication.

     

    (b) The
      Class
      A Certificates and the Mezzanine Certificates shall initially be issued as
      one
      or more Certificates held by the Book-Entry Custodian or, if appointed to hold
      such Certificates as provided below, the Depository and registered in the name
      of the Depository or its nominee and, except as provided below, registration
      of
      such Certificates may not be transferred by the Securities Administrator except
      to another Depository that agrees to hold such Certificates for the respective
      Certificate Owners with Ownership Interests therein. The Certificate Owners
      shall hold their respective Ownership Interests in and to such Certificates
      through the book-entry facilities of the Depository and, except as provided
      below, shall not be entitled to definitive, fully registered Certificates
      (“Definitive Certificates”) in respect of such Ownership Interests. All
      transfers by Certificate Owners of their respective Ownership Interests in
      the
      Book-Entry Certificates shall be made in accordance with the procedures
      established by the Depository Participant or brokerage firm representing such
      Certificate Owner. Each Depository Participant shall only transfer the Ownership
      Interests in the Book-Entry Certificates of Certificate Owners it represents
      or
      of brokerage firms for which it acts as agent in accordance with the
      Depository’s normal procedures. The Securities Administrator is hereby initially
      appointed as the Book-Entry Custodian and hereby agrees to act as such in
      accordance herewith and in accordance with the agreement that it has with the
      Depository authorizing it to act as such. The Book-Entry Custodian may, and,
      if
      it is no longer qualified to act as such, the Book-Entry Custodian shall,
      appoint, by a written instrument delivered to the Depositor, the Servicer and,
      if the Trustee is not the Book-Entry Custodian, the Trustee, any other transfer
      agent (including the Depository or any successor Depository) to act as
      Book-Entry Custodian under such conditions as the predecessor Book-Entry
      Custodian and the Depository or any successor Depository may prescribe, provided
      that the predecessor Book-Entry Custodian shall not be relieved of any of its
      duties or responsibilities by reason of any such appointment of other than
      the
      Depository. If the Securities Administrator resigns or is removed in accordance
      with the terms hereof, the successor Securities Administrator or, if it so
      elects, the Depository shall immediately succeed to its predecessor’s duties as
      Book-Entry Custodian. The Depositor shall have the right to inspect, and to
      obtain copies of, any Certificates held as Book-Entry Certificates by the
      Book-Entry Custodian.

     

    
      
        
        

      

      
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    (c) The
      Class
      CE-1 Certificates initially offered and sold in offshore transactions in
      reliance on Regulation S shall be issued in the form of a temporary global
      certificate in definitive, fully registered form (each, a “Regulation S
      Temporary Global Certificate”), which shall be deposited with the Securities
      Administrator or an agent of the Securities Administrator as custodian for
      the
      Depository and registered in the name of Cede & Co. as nominee of the
      Depository for the account of designated agents holding on behalf of Euroclear
      or Clearstream. Beneficial interests in each Regulation S Temporary Global
      Certificate may be held only through Euroclear or Clearstream; provided,
      however, that such interests may be exchanged for interests in a Definitive
      Certificate in accordance with the requirements described in Section 6.02.
      After
      the expiration of the Release Date, a beneficial interest in a Regulation S
      Temporary Global Certificate may be exchanged for a beneficial interest in
      the
      related permanent global certificate of the same Class (each, a “Regulation S
      Permanent Global Certificate”), in accordance with the procedures set forth in
      Section 6.02. Each Regulation S Permanent Global Certificate shall be deposited
      with the Securities Administrator or an agent of the Securities Administrator
      as
      custodian for the Depository and registered in the name of Cede & Co. as
      nominee of the Depository.

     

    The
      Class
      CE-1, Class CE-2 and Class P Certificates offered and sold to QIBs in reliance
      on Rule 144A will be issued in the form of Definitive Certificates.

     

    (d) The
      Trustee, the Servicer, the Securities Administrator, the Master Servicer and
      the
      Depositor may for all purposes (including the making of payments due on the
      Book-Entry Certificates and Global Certificates) deal with the Depository as
      the
      authorized representative of the Certificate Owners with respect to the
      Book-Entry Certificates and Global Certificates for the purposes of exercising
      the rights of Certificateholders hereunder. The rights of Certificate Owners
      with respect to the Book-Entry Certificates and Global Certificates shall be
      limited to those established by law and agreements between such Certificate
      Owners and the Depository Participants and brokerage firms representing such
      Certificate Owners. Multiple requests and directions from, and votes of, the
      Depository as Holder of the Book-Entry Certificates with respect to any
      particular matter shall not be deemed inconsistent if they are made with respect
      to different Certificate Owners. The Securities Administrator may establish
      a
      reasonable record date in connection with solicitations of consents from or
      voting by Certificateholders and shall give notice to the Depository of such
      record date.

     

    
      
        
        

      

      
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    If
      (i)(A)
      the Depositor advises the Securities Administrator in writing that the
      Depository is no longer willing or able to properly discharge its
      responsibilities as Depository, and (B) the Depositor is unable to locate a
      qualified successor, (ii) the Depositor at its option advises the Securities
      Administrator in writing that it elects to terminate the book-entry system
      through the Depository or (iii) after the occurrence of a Servicer Event of
      Default, Certificate Owners representing in the aggregate not less than 51%
      of
      the Ownership Interests of the Book-Entry Certificates advise the Securities
      Administrator through the Depository, in writing, that the continuation of
      a
      book-entry system through the Depository is no longer in the best interests
      of
      the Certificate Owners, the Securities Administrator shall notify all
      Certificate Owners, through the Depository, of the occurrence of any such event
      and of the availability of Definitive Certificates to Certificate Owners
      requesting the same. Upon surrender to the Securities Administrator of the
      Book-Entry Certificates by the Book-Entry Custodian or the Depository, as
      applicable, the Securities Administrator shall cause the Definitive Certificates
      to be issued. Such Definitive Certificates will be issued in minimum
      denominations of $10,000 except that any beneficial ownership that was
      represented by a Book-Entry Certificate in an amount less than $10,000
      immediately prior to the issuance of a Definitive Certificate shall be issued
      in
      a minimum denomination equal to the amount represented by such Book-Entry
      Certificate. None of the Depositor, the Servicer, the Master Servicer, the
      Securities Administrator or the Trustee shall be liable for any delay in the
      delivery of such instructions and may conclusively rely on, and shall be
      protected in relying on, such instructions. Upon the issuance of Definitive
      Certificates all references herein to obligations imposed upon or to be
      performed by the Depository shall be deemed to be imposed upon and performed
      by
      the Securities Administrator, to the extent applicable with respect to such
      Definitive Certificates, and the Securities Administrator shall recognize the
      Holders of the Definitive Certificates as Certificateholders
      hereunder.

     

    SECTION
      6.02. Registration
      of Transfer and Exchange of Certificates.

     

    (a) The
      Securities Administrator shall cause to be kept at one of the offices or
      agencies to be appointed by the Securities Administrator in accordance with
      the
      provisions of Section 9.11, a Certificate Register for the Certificates in
      which, subject to such reasonable regulations as it may prescribe, the
      Securities Administrator shall provide for the registration of Certificates
      and
      of transfers and exchanges of Certificates as herein provided.

     

    (b) No
      transfer of any Class CE-1 Certificate, Class CE-2 Certificate, Class P
      Certificate or Residual Certificate shall be made unless that transfer is made
      pursuant to an effective registration statement under the Securities Act, and
      effective registration or qualification under applicable state securities laws,
      or is made in a transaction that does not require such registration or
      qualification. In the event that such a transfer of a Class CE-1 Certificate,
      Class CE-2 Certificate, Class P Certificate or Residual Certificate is to be
      made without registration or qualification (other than in connection with the
      initial transfer of any such Certificate by the Depositor), the Securities
      Administrator shall require receipt of: (i) if such transfer is purportedly
      being made in reliance upon Rule 144A under the Securities Act, written
      certifications from the Certificateholder desiring to effect the transfer and
      from such Certificateholder’s prospective transferee, substantially in the form
      attached hereto as Exhibit B-1; (ii) if such transfer is purportedly being
      made
      in reliance upon Rule 501(a) under the Securities Act, written certifications
      from the Certificateholder desiring to effect the transfer and from such
      Certificateholder’s prospective transferee, substantially in the form attached
      hereto as Exhibit B-2; and (iii) in all other cases, an Opinion of Counsel
      satisfactory to the Securities Administrator that such transfer may be made
      without such registration or qualification (which Opinion of Counsel shall
      not
      be an expense of the Trust Fund or of the Depositor, the Trustee, the Master
      Servicer, the Securities Administrator or the Servicer), together with copies
      of
      the written certification(s) of the Certificateholder desiring to effect the
      transfer and/or such Certificateholder’s prospective transferee upon which such
      Opinion of Counsel is based, if any. Neither of the Depositor nor the Securities
      Administrator is obligated to register or qualify any such Certificates under
      the Securities Act or any other securities laws or to take any action not
      otherwise required under this Agreement to permit the transfer of such
      Certificates without registration or qualification. Any Certificateholder
      desiring to effect the transfer of any such Certificate shall, and does hereby
      agree to, indemnify the Trustee, the Depositor, the Master Servicer, the
      Securities Administrator and the Servicers 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.

     

    
      
        
        

      

      
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    A
      holder
      of a beneficial interest in a Regulation S Temporary Global Certificate must
      provide Euroclear or Clearstream, as the case may be, with a certificate in
      the
      form of Annex A to Exhibit B-2 hereto certifying that the beneficial owner
      of
      the interest in such Global Certificate is not a U.S. Person (as defined in
      Regulation S), and Euroclear or Clearstream, as the case may be, must provide
      to
      the Securities Administrator a certificate in the form of Exhibit B-2 hereto
      prior to (i) the payment of interest or principal with respect to such holder’s
      beneficial interest in the Regulation S Temporary Global Certificate and (ii)
      any exchange of such beneficial interest for a beneficial interest in a
      Regulation S Permanent Global Certificate.

     

    (c) No
      transfer of a Class CE-1 Certificate, Class CE-2 Certificate, Class P
      Certificate or a Residual Certificate or any interest therein shall be made
      to
      any Plan, any Person acting, directly or indirectly, on behalf of any Plan
      or
      any Person acquiring such Certificates with “Plan Assets” of a Plan within the
      meaning of the Department of Labor regulation promulgated at 29 C.F.R. §
2510.3-101 as modified by Section 3(42) of ERISA (“Plan Assets”) unless the
      Securities Administrator is provided with an Opinion of Counsel on which the
      Depositor, the Master Servicer, the Securities Administrator, the Trustee and
      the Servicers may rely, which establishes to the satisfaction of the Securities
      Administrator that the purchase of such Certificates is permissible under
      applicable law, will not constitute or result in any prohibited transaction
      under ERISA or Section 4975 of the Code and will not subject the Depositor,
      the
      Servicers, the Trustee, the Master Servicer, the Securities Administrator or
      the
      Trust Fund to any obligation or liability (including obligations or liabilities
      under ERISA or Section 4975 of the Code) in addition to those undertaken in
      this
      Agreement, which Opinion of Counsel shall not be an expense of the Depositor,
      the Servicer, the Trustee, the Master Servicer, the Securities Administrator,
      the Trust Fund. An Opinion of Counsel will not be required in connection with
      the initial transfer of any such Certificate by the Depositor to an affiliate
      of
      the Depositor (in which case, the Depositor or any affiliate thereof shall
      have
      deemed to have represented that such affiliate is not a Plan or a Person
      investing Plan Assets) and the Securities Administrator shall be entitled to
      conclusively rely upon a representation (which, upon the request of the
      Securities Administrator, shall be a written representation) from the Depositor
      of the status of such transferee as an affiliate of the Depositor.

     

    
      
        
        

      

      
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    For
      so
      long as the Supplemental Interest Trust is in existence, each beneficial owner
      of an Offered Certificate or any interest therein, shall be deemed to have
      represented, by virtue of its acquisition or holding of the Offered Certificate,
      or interest therein, that either (i) it is not a Plan or (ii)(A) it is an
      accredited investor within the meaning of Prohibited Transaction Exemption
      2007-05, as amended from time to time (the “Exemption”) and (B) the acquisition
      and holding of such Certificate and the separate right to receive payments
      from
      the Supplemental Interest Trust are eligible for the exemptive relief available
      under Prohibited Transaction Class Exemption (“PTCE”) 84-14 (for transactions by
      independent “qualified professional asset managers”), 91-38 (for transactions by
      bank collective investment funds), 90-1 (for transactions by insurance company
      pooled separate accounts), 95-60 (for transactions by insurance company general
      accounts) or 96-23 (for transactions effected by “in-house asset
      managers”).

     

    Each
      Transferee of a Mezzanine Certificate or any interest therein that is acquired
      after the termination of the Supplemental Interest Trust will be deemed to
      have
      represented by virtue of its purchase or holding of such Certificate (or
      interest therein) that either (a) such Transferee is not a Plan or purchasing
      such Certificate with Plan Assets, (b) it has acquired and is holding such
      Certificate in reliance on the Exemption, and that it understands that there
      are
      certain conditions to the availability of the Exemption including that such
      Certificate must be rated, at the time of purchase, not lower than “BBB-” (or
      its equivalent) by a rating agency recognized under the Exemption or (c) the
      following conditions are satisfied: (i) such Transferee is an insurance company,
      (ii) the source of funds used to purchase or hold such Certificate (or interest
      therein) is an “insurance company general account” (as defined in PTCE 95-60),
      and (iii) the conditions set forth in Sections I and III of PTCE 95-60 have
      been
      satisfied.

     

    If
      any
      Certificate or any interest therein is acquired or held in violation of the
      conditions described in this Section 6.02(c), the next preceding permitted
      beneficial owner will be treated as the beneficial owner of that Certificate,
      retroactive to the date of transfer to the purported beneficial owner. Any
      purported beneficial owner whose acquisition or holding of any certificate
      or
      interest therein was effected in violation of the conditions described in this
      Section 6.02(c) shall indemnify and hold harmless the Depositor, the Trustee,
      the Servicers, the Master Servicer, the Securities Administrator and the Trust
      Fund from and against any and all liabilities, claims, costs or expenses
      incurred by those parties as a result of that acquisition or
      holding.

     

    (d)(i)
      Each
      Person who has or who acquires any Ownership Interest in a Residual Certificate
      shall be deemed by the acceptance or acquisition of such Ownership Interest
      to
      have agreed to be bound by the following provisions and to have irrevocably
      authorized the Securities Administrator or its designee under clause (iii)(A)
      below to deliver payments to a Person other than such Person and to negotiate
      the terms of any mandatory sale under clause (iii)(B) below and to execute
      all
      instruments of Transfer and to do all other things necessary in connection
      with
      any such sale. The rights of each Person acquiring any Ownership Interest in
      a
      Residual Certificate are expressly subject to the following
      provisions:

     

    (A) Each
      Person holding or acquiring any Ownership Interest in a Residual Certificate
      shall be a Permitted Transferee and shall promptly notify the Securities
      Administrator of any change or impending change in its status as a Permitted
      Transferee.

     

    
      
        
        

      

      
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    (B) In
      connection with any proposed Transfer of any Ownership Interest in a Residual
      Certificate, the Securities Administrator shall require delivery to it, and
      shall not register the Transfer of any Residual Certificate until its receipt
      of, an affidavit and agreement (a “Transfer Affidavit and Agreement,” in the
      form attached hereto as Exhibit B-4) from the proposed Transferee, in form
      and
      substance satisfactory to the Securities Administrator, representing and
      warranting, among other things, that such Transferee is a Permitted Transferee,
      that it is not acquiring its Ownership Interest in the Residual Certificate
      that
      is the subject of the proposed Transfer as a nominee, trustee or agent for
      any
      Person that is not a Permitted Transferee, that for so long as it retains its
      Ownership Interest in a Residual Certificate, it will endeavor to remain a
      Permitted Transferee, and that it has reviewed the provisions of this Section
      6.02(d) and agrees to be bound by them.

     

    (C) Notwithstanding
      the delivery of a Transfer Affidavit and Agreement by a proposed Transferee
      under clause (B) above, if an authorized officer of the Securities Administrator
      who is assigned to this transaction has actual knowledge that the proposed
      Transferee is not a Permitted Transferee, no Transfer of an Ownership Interest
      in a Residual Certificate to such proposed Transferee shall be
      effected.

     

    (D) Each
      Person holding or acquiring any Ownership Interest in a Residual Certificate
      shall agree (x) to require a Transfer Affidavit and Agreement from any other
      Person to whom such Person attempts to transfer its Ownership Interest in a
      Residual Certificate and (Y) not to transfer its Ownership Interest unless
      it
      provides a Transferor Affidavit (in the form attached hereto as Exhibit B-4)
      to
      the Securities Administrator stating that, among other things, it has no actual
      knowledge that such other Person is not a Permitted Transferee.

     

    (E) Each
      Person holding or acquiring an Ownership Interest in a Residual Certificate,
      by
      purchasing an Ownership Interest in such Certificate, agrees to give the
      Securities Administrator written notice that it is a “pass-through interest
      holder” within the meaning of temporary Treasury regulation Section
      1.67-3T(a)(2)(i)(A) immediately upon acquiring an Ownership Interest in a
      Residual Certificate, if it is, or is holding an Ownership Interest in a
      Residual Certificate on behalf of, a “pass-through interest
      holder.”

     

    (ii) The
      Securities Administrator will register the Transfer of any Residual Certificate
      only if it shall have received the Transfer Affidavit and Agreement and all
      of
      such other documents as shall have been reasonably required by the Securities
      Administrator as a condition to such registration. In addition, no Transfer
      of a
      Residual Certificate shall be made unless the Securities Administrator shall
      have received a representation letter from the Transferee of such Certificate
      to
      the effect that such Transferee is a Permitted Transferee.

     

    (iii) (A)
      If
      any purported Transferee shall become a Holder of a Residual Certificate in
      violation of the provisions of this Section 6.02(d), then the last preceding
      Permitted Transferee shall be restored, to the extent permitted by law, to
      all
      rights as holder thereof retroactive to the date of registration of such
      Transfer of such Residual Certificate. The Securities Administrator shall be
      under no liability to any Person for any registration of Transfer of a Residual
      Certificate that is in fact not permitted by this Section 6.02(d) or for making
      any payments due on such Certificate to the holder thereof or for taking any
      other action with respect to such holder under the provisions of this
      Agreement.

     

    
      
        
        

      

      
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    (B) If
      any
      purported Transferee shall become a holder of a Residual Certificate in
      violation of the restrictions in this Section 6.02(d) and to the extent that
      the
      retroactive restoration of the rights of the holder of such Residual Certificate
      as described in clause (iii)(A) above shall be invalid, illegal or
      unenforceable, then the Securities Administrator shall have the right, without
      notice to the holder or any prior holder of such Residual Certificate, to sell
      such Residual Certificate to a purchaser selected by the Securities
      Administrator on such terms as the Securities Administrator may choose. Such
      purported Transferee shall promptly endorse and deliver each Residual
      Certificate in accordance with the instructions of the Securities Administrator.
      Such purchaser may be the Securities Administrator itself or any Affiliate
      of
      the Securities Administrator. The proceeds of such sale, net of the commissions
      (which may include commissions payable to the Securities Administrator or its
      Affiliates), expenses and taxes due, if any, will be remitted by the Securities
      Administrator to such purported Transferee. The terms and conditions of any
      sale
      under this clause (iii)(B) shall be determined in the sole discretion of the
      Securities Administrator, and the Securities Administrator shall not be liable
      to any Person having an Ownership Interest in a Residual Certificate as a result
      of its exercise of such discretion.

     

    (iv) The
      Securities Administrator shall make available to the Internal Revenue Service
      and those Persons specified by the REMIC Provisions all information necessary
      to
      compute any tax imposed (A) as a result of the Transfer of an Ownership Interest
      in a Residual Certificate to any Person who is a Disqualified Organization,
      including the information described in Treasury regulations sections
      1.860D-1(b)(5) and 1.860E-2(a)(5) with respect to the “excess inclusions” of
      such Residual Certificate and (B) as a result of any regulated investment
      company, real estate investment trust, common trust fund, partnership, trust,
      estate or organization described in Section 1381 of the Code that holds an
      Ownership Interest in a Residual Certificate having as among its record holders
      at any time any Person which is a Disqualified Organization. Reasonable
      compensation for providing such information may be charged or collected by
      the
      Securities Administrator.

     

    (v) The
      provisions of this Section 6.02(d) set forth prior to this subsection (v) may
      be
      modified, added to or eliminated, provided that there shall have been delivered
      to the Securities Administrator and the NIMS Insurer at the expense of the
      party
      seeking to modify, add to or eliminate any such provision the
      following:

     

    (A) written
      notification from each Rating Agency to the effect that the modification,
      addition to or elimination of such provisions will not cause such Rating Agency
      to downgrade its then-current ratings of any Class of Certificates;
      and

     

    
      
        
        

      

      
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    (B) an
      Opinion of Counsel, in form and substance satisfactory to the Securities
      Administrator and the NIMS Insurer, to the effect that such modification of,
      addition to or elimination of such provisions will not cause any Trust REMIC
      to
      cease to qualify as a REMIC and will not cause any Trust REMIC, as the case
      may
      be, to be subject to an entity-level tax caused by the Transfer of any Residual
      Certificate to a Person that is not a Permitted Transferee or a Person other
      than the prospective transferee to be subject to a REMIC-tax caused by the
      Transfer of a Residual Certificate to a Person that is not a Permitted
      Transferee.

     

    (e) Subject
      to the preceding subsections, upon surrender for registration of transfer of
      any
      Certificate at any office or agency of the Securities Administrator maintained
      for such purpose pursuant to Section 9.11, the Securities Administrator shall
      execute, authenticate and deliver, in the name of the designated Transferee
      or
      Transferees, one or more new Certificates of the same Class of a like aggregate
      Percentage Interest.

     

    (f) At
      the
      option of the Holder thereof, any Certificate may be exchanged for other
      Certificates of the same Class with authorized denominations and a like
      aggregate Percentage Interest, upon surrender of such Certificate to be
      exchanged at any office or agency of the Securities Administrator maintained
      for
      such purpose pursuant to Section 9.11. Whenever any Certificates are so
      surrendered for exchange, the Securities Administrator shall execute,
      authenticate and deliver, the Certificates which the Certificateholder making
      the exchange is entitled to receive. Every Certificate presented or surrendered
      for transfer or exchange shall (if so required by the Securities Administrator)
      be duly endorsed by, or be accompanied by a written instrument of transfer
      in
      the form satisfactory to the Securities Administrator duly executed by, the
      Holder thereof or his attorney duly authorized in writing. In addition, with
      respect to each Class R Certificate, the holder thereof may exchange, in the
      manner described above, such Class R Certificate for three separate
      certificates, each representing such holder's respective Percentage Interest
      in
      the Class R-I Interest, the Class R-II Interest and the Class R-III Interest,
      respectively, in each case that was evidenced by the Class R Certificate being
      exchanged.

     

    (g) No
      transfer of any Class CE-1 Certificate shall be made unless the proposed
      transferee of such Class CE-1 Certificate (1) provides to the Securities
      Administrator the appropriate tax certification forms that would eliminate
      any
      withholding or deduction for taxes from amounts payable by the Cap Counterparty
      and the Swap Provider to the Securities Administrator pursuant Cap Contracts
      and
      the Swap Agreement (i.e., IRS Form W-9 or IRS Form W-8BEN, W-8IMY, W-8EXP or
      W-8ECI, as applicable (or any successor form thereto), together with any
      applicable attachments) and (2) agrees to update such forms (a) upon expiration
      of any such form, (b) as required under then applicable U.S. Treasury
      regulations and (c) promptly upon learning that any such form has become
      obsolete or incorrect, each as a condition to such transfer so long as they
      are
      in physical form. In addition, no transfer of any Class CE-1 Certificate shall
      be made if such transfer would cause the Reserve Fund or the Supplemental
      Interest Trust to be beneficially owned by two or more persons for federal
      income tax purposes, or continue to be so treated, unless (i) each proposed
      transferee of such Class CE-1 Certificate complies with the foregoing
      conditions, (ii) the proposed majority holder of the Class CE-1 Certificates
      (or
      each holder, if there is or would be no majority holder) (A) provides, or causes
      to be provided, on behalf of the Reserve Fund and the Supplemental Interest
      Trust, if applicable, the appropriate tax certification form that would be
      required from the Supplemental Interest Trust to eliminate any withholding
      or
      deduction for taxes from amounts payable by the Cap Counterparty and the Swap
      Provider to the Securities Administrator pursuant the Cap Contracts and the
      Swap
      Agreement (i.e., IRS Form W-9 or IRS Form W-8BEN, W-8IMY, W-8EXP or W-8ECI,
      as
      applicable (or any successor form thereto), together with any applicable
      attachments) and (B) agrees to update such forms (x) upon expiration of any
      such
      form, (y) as required under then applicable U.S. Treasury regulations and (z)
      promptly upon learning that any such form has become obsolete or incorrect.
      If,
      under applicable U.S. Treasury regulations, such tax certification form may
      only
      be signed by a trustee acting on behalf of the Supplemental Interest Trust,
      then
      the Securities Administrator, the Trustee or the Supplemental Interest Trust
      Trustee, as appropriate, shall sign such certification form if so requested
      by a
      holder of the Class CE-1 Certificates. Upon receipt of any tax certification
      form pursuant to the preceding conditions from a proposed transferee of any
      Class CE-1 Certificate, the Securities Administrator shall forward each tax
      certification form attributable to the Cap Contracts to the Cap Counterparty
      and
      each tax certification form attributable to the Swap Agreement to the Swap
      Provider so long as the Securities Administrator is permitted to provide such
      tax certification form. Each holder of a Class CE-1 Certificate and each
      transferee thereof shall be deemed to have consented to the Securities
      Administrator forwarding to Swap Provider any tax certification form it has
      provided and updated in accordance with these transfer restrictions. Any
      purported sales or transfers of any Class CE-1 Certificate to a transferee
      which
      does not comply with the requirements of this paragraph shall be deemed null
      and
      void under this Agreement. In the event that the Securities Administrator is
      unable to provide a tax certification pursuant to this paragraph, it shall
      immediately notify the Depositor, the Cap Counterparty and the Swap
      Provider.

     

    
      
        
        

      

      
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    (h) No
      service charge to the Certificateholders shall be made for any transfer or
      exchange of Certificates, but the Securities Administrator may require payment
      of a sum sufficient to cover any tax or governmental charge that may be imposed
      in connection with any transfer or exchange of Certificates.

     

    (i) All
      Certificates surrendered for transfer and exchange shall be canceled and
      destroyed by the Securities Administrator in accordance with its customary
      procedures.

     

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

     

    If
      (i)
      any mutilated Certificate is surrendered to the Securities Administrator, or
      the
      Securities Administrator receives evidence to its satisfaction of the
      destruction, loss or theft of any Certificate and of the ownership thereof,
      and
      (ii) there is delivered to the Securities Administrator such security or
      indemnity as may be required by it to save it harmless, then, in the absence
      of
      actual knowledge by the Securities Administrator that such Certificate has
      been
      acquired by a protected purchaser, the Securities Administrator, shall execute,
      authenticate and deliver, in exchange for or in lieu of any such mutilated,
      destroyed, lost or stolen Certificate, a new Certificate of the same Class
      and
      of like denomination and Percentage Interest. Upon the issuance of any new
      Certificate under this Section, the Securities Administrator may require the
      payment of a sum sufficient to cover any tax or other governmental charge that
      may be imposed in relation thereto and any other expenses (including the fees
      and expenses of the Securities Administrator) connected therewith. Any
      replacement Certificate issued pursuant to this Section shall constitute
      complete and indefeasible evidence of ownership in the applicable REMIC created
      hereunder, as if originally issued, whether or not the lost, stolen or destroyed
      Certificate shall be found at any time.

     

    
      
        
        

      

      
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    SECTION
      6.04. Persons
      Deemed Owners.

     

    The
      Depositor, the Servicers, the Trustee, the Master Servicer, the NIMS Insurer,
      the Securities Administrator and any agent of any of them may treat the Person
      in whose name any Certificate is registered as the owner of such Certificate
      for
      the purpose of receiving distributions pursuant to Section 5.01 and for all
      other purposes whatsoever, and none of the Depositor, the Servicers, the
      Trustee, the Master Servicer, the Securities Administrator or any agent of
      any
      of them shall be affected by notice to the contrary.

     

    SECTION
      6.05. Certain
      Available Information.

     

    On
      or
      prior to the date of the first sale of any Class
      M-9
      Certificate, Class
      CE-1 Certificate, Class CE-2 Certificate, Class P Certificate or Residual
      Certificate to an Independent third party, the Depositor shall provide to the
      Securities Administrator ten copies of any private placement memorandum or
      other
      disclosure document used by the Depositor in connection with the offer and
      sale
      of such Certificate. In addition, if any such private placement memorandum
      or
      disclosure document is revised, amended or supplemented at any time following
      the delivery thereof to the Securities Administrator, the Depositor promptly
      shall inform the Securities Administrator of such event and shall deliver to
      the
      Securities Administrator ten copies of the private placement memorandum or
      disclosure document, as revised, amended or supplemented. The Securities
      Administrator shall maintain at its office as set forth in Section 12.05 hereof
      and shall make available free of charge during normal business hours for review
      by any Holder of a Certificate or any Person identified to the Securities
      Administrator as a prospective transferee of a Certificate, originals or copies
      of the following items: (i) in the case of a Holder or prospective transferee
      of
      a Class M-9 Certificate, Class CE-1 Certificate, Class CE-2 Certificate, Class
      P
      Certificate or Residual Certificate, the related private placement memorandum
      or
      other disclosure document relating to such Class of Certificates, in the form
      most recently provided to the Securities Administrator; and (ii) in all cases,
      (A) this Agreement and any amendments hereof entered into pursuant to Section
      12.01, (B) all monthly statements required to be delivered to Certificateholders
      of the relevant Class pursuant to Section 5.02 since the Closing Date, and
      all
      other notices, reports, statements and written communications delivered to
      the
      Certificateholders of the relevant Class pursuant to this Agreement since the
      Closing Date and (C) any copies of all Officers’ Certificates of the Servicers
      since the Closing Date delivered to the Master Servicer to evidence such
      Person’s determination that any P&I Advance or Servicing Advance was, or if
      made, would be a Nonrecoverable P&I Advance or Nonrecoverable Servicing
      Advance. Copies and mailing of any and all of the foregoing items will be
      available from the Securities Administrator upon request at the expense of
      the
      Person requesting the same.

     

    
      
        
        

      

      
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    ARTICLE
      VII

    THE
      DEPOSITOR, THE SERVICERS AND THE MASTER SERVICER

     

    SECTION
      7.01. Liability
      of the Depositor, the Servicers and the Master Servicer.

     

    The
      Depositor, the Servicers and the Master Servicer each shall be liable in
      accordance herewith only to the extent of the obligations specifically imposed
      by this Agreement upon them in their respective capacities as Depositor,
      Servicers and Master Servicer and undertaken hereunder by the Depositor, the
      Servicers and the Master Servicer herein. References to the Servicers in this
      Article VII (other than with respect to Sections 7.08, 7.09, 7.10 and 7.11)
      shall be deemed to refer to Ocwen and GMAC.

     

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

     

    Subject
      to the following paragraph, the Depositor will keep in full effect its
      existence, rights and franchises as a corporation under the laws of the
      jurisdiction of its incorporation. Subject to the following paragraph, each
      Servicer will keep in full effect its existence, rights and franchises as a
      limited liability company under the laws of the jurisdiction of its formation.
      Subject to the following paragraph, the Master Servicer will keep in full effect
      its existence, rights and franchises as a national banking association. The
      Depositor, the Servicers and the Master Servicer each will obtain and preserve
      its qualification to do business as a foreign entity in each jurisdiction in
      which such qualification is or shall be necessary to protect the validity and
      enforceability of this Agreement, the Certificates or any of the Mortgage Loans
      and to perform its respective duties under this Agreement.

     

    The
      Depositor, the Servicers or the Master Servicer may be merged or consolidated
      with or into any Person, or transfer all or substantially all of its assets
      to
      any Person, in which case any Person resulting from any merger or consolidation
      to which the Depositor, the related Servicer or the Master Servicer shall be
      a
      party, or any Person succeeding to the business of the Depositor, the related
      Servicer or the Master Servicer, shall be the successor of the Depositor, the
      related Servicer or the Master Servicer, as the case may be, hereunder, without
      the execution or filing of any paper or any further act on the part of any
      of
      the parties hereto, anything herein to the contrary notwithstanding; provided,
      however, that any successor to the related Servicer or the Master Servicer
      shall
      meet the eligibility requirements set forth in clauses (i) and (iii) of the
      last
      paragraph of Section 8.02(a) or Section 7.06, as applicable.

     

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

     

    None
      of
      the Depositor, the Servicers, the Securities Administrator, the Master Servicer,
      the NIMS Insurer or any of the directors, officers, employees or agents of
      the
      Depositor, the Servicer, the NIMS Insurer or the Master Servicer shall be under
      any liability to the Trust Fund or the Certificateholders for any action taken
      or for refraining from the taking of any action in good faith pursuant to this
      Agreement, or for errors in judgment; provided, however, that this provision
      shall not protect the Depositor, the Servicers, the Securities Administrator,
      the Master Servicer or any such person against any breach of warranties,
      representations or covenants made herein or against any specific liability
      imposed on any such Person pursuant hereto or against any liability which would
      otherwise be imposed by reason of willful misfeasance, bad faith or gross
      negligence in the performance of duties or by reason of reckless disregard
      of
      obligations and duties hereunder. The Depositor, the Servicers, the Securities
      Administrator, the Master Servicer, the NIMS Insurer and any director, officer,
      employee or agent of the Depositor, the Servicers, the Securities Administrator
      and the Master Servicer may rely in good faith on any document of any kind
      which, prima facie, is properly executed and submitted by any Person respecting
      any matters arising hereunder. The Depositor, the Servicers, the Securities
      Administrator, the Master Servicer and any director, officer, employee or agent
      of the Depositor, the Servicers, the Securities Administrator or the Master
      Servicer shall be indemnified and held harmless by the Trust Fund against any
      loss, liability or expense incurred in connection with any legal action relating
      to this Agreement, the Servicing Agreement, the Certificates or any Credit
      Risk
      Management Agreement or any loss, liability or expense incurred other than
      by
      reason of willful misfeasance, bad faith or gross negligence in the performance
      of duties hereunder or by reason of reckless disregard of obligations and duties
      hereunder. None of the Depositor, the Servicers, the Securities Administrator
      or
      the Master Servicer shall be under any obligation to appear in, prosecute or
      defend any legal action unless such action is related to its respective duties
      under this Agreement and, in its opinion, does not involve it in any expense
      or
      liability; provided, however, that each of the Depositor, each Servicer, the
      Securities Administrator and the Master Servicer may in its discretion undertake
      any such action which it may deem necessary or desirable with respect to this
      Agreement and the rights and duties of the parties hereto and the interests
      of
      the Certificateholders hereunder. In such event, the legal expenses and costs
      of
      such action and any liability resulting therefrom (except any loss, liability
      or
      expense incurred by reason of willful misfeasance, bad faith or gross negligence
      in the performance of duties hereunder or by reason of reckless disregard of
      obligations and duties hereunder) shall be expenses, costs and liabilities
      of
      the Trust Fund, the Depositor, the related Servicer, the Securities
      Administrator and the Master Servicer shall be entitled to be reimbursed
      therefor from the related Collection Account or the Distribution Account as
      and
      to the extent provided in Article III and Article IV, any such right of
      reimbursement being prior to the rights of the Certificateholders to receive
      any
      amount in the related Collection Account and the Distribution
      Account.

     

    
      
        
        

      

      
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    Notwithstanding
      anything to the contrary contained herein, the Servicers shall not be liable
      for
      any actions or inactions prior to the Cut-off Date of any prior servicer of
      the
      related Mortgage Loans and the Master Servicer shall not be liable for any
      action or inaction of the Servicers, except to the extent expressly provided
      herein, or the Credit Risk Management Agreement.

     

    SECTION
      7.04. Limitation
      on Resignation of the Servicers.

     

    (a) Except
      as
      expressly provided herein, neither Servicer shall assign all or substantially
      all of its rights under this Agreement or the servicing hereunder nor delegate
      all or substantially all of its duties hereunder or sell or otherwise dispose
      of
      all or substantially all of its property or assets without, in each case, the
      prior written consent of the Master Servicer, which consent shall not be
      unreasonably withheld; provided, that in each case, there must be delivered
      to
      the Trustee and the Master Servicer a letter from each Rating Agency to the
      effect that such transfer of servicing or sale or disposition of assets will
      not
      result in a qualification, withdrawal or downgrade of the then-current rating
      of
      any of the Certificates (the “Rating Condition”). Notwithstanding the foregoing,
      each Servicer, without the consent of the Trustee or the Master Servicer, may
      retain third-party contractors to perform certain servicing and loan
      administration functions, including without limitation hazard insurance
      administration, tax payment and administration, flood certification and
      administration, collection services and similar functions, provided, however,
      that the retention of such contractors by the related Servicer shall not limit
      the obligation of the related Servicer to service the related Mortgage Loans
      pursuant to the terms and conditions of this Agreement. No Servicer shall resign
      from the obligations and duties hereby imposed on it except (i) upon
      determination that its duties hereunder are no longer permissible under
      applicable law or (ii) upon the related Servicer’s written proposal of a
      successor servicer reasonably acceptable to each of the Sponsor, the Depositor
      and the Master Servicer. No such resignation under clause (i) above shall become
      effective unless evidenced by an Opinion of Counsel to such effect obtained
      at
      the expense of the related Servicer and delivered to the Trustee and the Rating
      Agencies. No such resignation of a Servicer under clause (ii) shall be effective
      unless:

     

    (i) the
      proposed successor Servicer is (1) an affiliate of the Master Servicer that
      services mortgage loans similar to the Mortgage Loans in the jurisdictions
      in
      which the related Mortgaged Properties are located or (2) the proposed successor
      Servicer has a rating of at least “Above Average” by S&P and either a rating
      of at least “RPS2” by Fitch or a rating of at least “SQ2” by
      Moody’s;

     

    
      
        
        

      

      
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    (ii) the
      Rating Agencies have confirmed to the Trustee that the appointment of the
      proposed successor servicer as the servicer under this Agreement will not result
      in the reduction or withdrawal of the then current ratings of any of the
      Certificates; and

     

    (iii) the
      proposed successor servicer has a net worth of at least
      $25,000,000.

     

    Notwithstanding
      anything to the contrary, no resignation of a Servicer shall become effective
      until the Master Servicer or a successor servicer shall have assumed the related
      Servicer’s responsibilities, duties, liabilities (other than those liabilities
      arising prior to the appointment of such successor) and obligations under this
      Agreement. In addition, the Sponsor shall promptly inform the Credit Risk
      Manager of a Servicer’s resignation under this Section 7.04.

     

    (b) Except
      as
      expressly provided herein, no Servicer shall assign or transfer any of its
      rights, benefits or privileges hereunder to any other Person, or delegate to
      or
      subcontract with, or authorize or appoint any other Person to perform any of
      the
      duties, covenants or obligations to be performed by the related Servicer
      hereunder. The foregoing prohibition on assignment shall not prohibit a Servicer
      from designating a Sub-Servicer as payee of any indemnification amount payable
      to the related Servicer hereunder; provided, however, that as provided in
      Section 3.02, no Sub-Servicer shall be a third-party beneficiary hereunder
      and
      the parties hereto shall not be required to recognize any Sub-Servicer as an
      indemnitee under this Agreement.

     

    (c) Notwithstanding
      anything to the contrary herein, Ocwen may pledge or assign as collateral all
      its rights, title and interest under this Agreement to a lender (the “Servicing
      Rights Lender”) and allow such Servicing Rights Lender (i) to cause the transfer
      of servicing to a successor Servicer that meets the Rating Condition if Ocwen
      defaults under its agreements with the Servicing Rights Lender and (ii) upon
      an
      Event of Default and receipt of notice of termination by Ocwen, the Servicing
      Rights Lender may direct Ocwen or its designee to appoint a successor Servicer
      pursuant to the provisions, and subject to the conditions set forth in Section
      8.02 regarding Ocwen’s appointment of a successor Servicer, provided,
      that:

     

    (i) the
      Servicing Rights Lender’s rights are subject to this Agreement; and

     

    
      
        
        

      

      
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    (ii) such
      Servicer shall remain subject to termination as servicer under this Agreement
      pursuant to the terms hereof.

     

    SECTION
      7.05. Limitation
      on Resignation of the Master Servicer.

     

    The
      Master Servicer shall not resign from the obligations and duties hereby imposed
      on it except upon determination that its duties hereunder are no longer
      permissible under applicable law. Any such determination pursuant to the
      preceding sentence permitting the resignation of the Master Servicer shall
      be
      evidenced by an Opinion of Counsel to such effect obtained at the expense of
      the
      Master Servicer and delivered to the Trustee and the Rating Agencies. No
      resignation of the Master Servicer shall become effective until the Trustee
      or a
      successor Master Servicer meeting the criteria specified in Section 7.06 shall
      have assumed the Master Servicer’s responsibilities, duties, liabilities (other
      than those liabilities arising prior to the appointment of such successor)
      and
      obligations under this Agreement.

     

    SECTION
      7.06. Assignment
      of Master Servicing.

     

    The
      Master Servicer may sell and assign its rights and delegate its duties and
      obligations in its entirety as Master Servicer under this Agreement; provided,
      however, that: (i) the purchaser or transferee accept in writing such assignment
      and delegation and assume the obligations of the Master Servicer hereunder
      (a)
      shall have a net worth of not less than $25,000,000 (unless otherwise approved
      by each Rating Agency pursuant to clause (ii) below); (b) shall be reasonably
      satisfactory to the Trustee (as evidenced in a writing signed by the Trustee
      and
      the NIMS Insurer); and (c) shall execute and deliver to the Trustee an
      agreement, in form and substance reasonably satisfactory to the Trustee and
      the
      NIMS Insurer, which contains an assumption by such Person of the due and
      punctual performance and observance of each covenant and condition to be
      performed or observed by it as master servicer under this Agreement, any
      custodial agreement from and after the effective date of such agreement; (ii)
      each Rating Agency shall be given prior written notice of the identity of the
      proposed successor to the Master Servicer and each Rating Agency’s rating of the
      Certificates in effect immediately prior to such assignment, sale and delegation
      will not be downgraded, qualified or withdrawn as a result of such assignment,
      sale and delegation, as evidenced by a letter to such effect delivered to the
      Master Servicer, the Trustee and the NIMS Insurer; and (iii) the Master Servicer
      assigning and selling the master servicing shall deliver to the Trustee an
      Officer’s Certificate and an Opinion of Independent counsel, each stating that
      all conditions precedent to such action under this Agreement have been completed
      and such action is permitted by and complies with the terms of this Agreement.
      No such assignment or delegation shall affect any liability of the Master
      Servicer arising out of acts or omissions prior to the effective date
      thereof.

     

    
      
        
        

      

      
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    SECTION
      7.07. Rights
      of
      the Depositor in Respect of the Servicers and the Master Servicer.

     

    Each
      of
      the Master Servicer and each Servicer shall afford (and any Sub-Servicing or
      Sub-Contracting Agreement shall provide that each Sub-Servicer or Subcontractor,
      as applicable shall afford) the Depositor and the Trustee, upon reasonable
      notice, during normal business hours, access to all records maintained by the
      Master Servicer or the related Servicer (and any such Sub-Servicer or
      Subcontractor, as applicable) in respect of the related Servicer’s rights and
      obligations hereunder and access to officers of the Master Servicer or the
      related Servicer (and those of any such Sub-Servicer or Subcontractor, as
      applicable) responsible for such obligations, and the Master Servicer shall
      have
      access to all such records maintained by the related Servicer and any
      Sub-Servicers or Subcontractors. Upon request, each of the Master Servicer
      and
      the Servicers shall furnish to the Depositor and the Trustee its (and any such
      Sub-Servicer’s or Subcontractor’s) most recent financial statements and such
      other information relating to the Master Servicer’s or the related Servicer’s
      capacity to perform its obligations under this Agreement as it possesses (and
      that any such Sub-Servicer or Subcontractor possesses). To the extent that
      the
      Master Servicer or a Servicer informs the Depositor and the Trustee that such
      information is not otherwise available to the public, the Depositor and the
      Trustee shall not disseminate any information obtained pursuant to the preceding
      two sentences without the Master Servicer’s or the related Servicer’s written
      consent, except as required pursuant to this Agreement or to the extent that
      it
      is appropriate to do so (i) to its legal counsel, auditors, taxing authorities
      or other governmental agencies and the Certificateholders, (ii) pursuant to
      any
      law, rule, regulation, order, judgment, writ, injunction or decree of any court
      or governmental authority having jurisdiction over the Depositor and the Trustee
      or the Trust Fund, and in any case, the Depositor or the Trustee, (iii)
      disclosure of any and all information that is or becomes publicly known, or
      information obtained by the Trustee from sources other than the Depositor,
      the
      related Servicer or the Master Servicer, (iv) disclosure as required pursuant
      to
      this Agreement or (v) disclosure of any and all information (A) in any
      preliminary or final offering circular, registration statement or contract
      or
      other document pertaining to the transactions contemplated by the Agreement
      approved in advance by the Depositor, the related Servicer or the Master
      Servicer or (B) to any affiliate, independent or internal auditor, agent,
      employee or attorney of the Trustee having a need to know the same, provided
      that the Trustee advises such recipient of the confidential nature of the
      information being disclosed, shall use its best efforts to assure the
      confidentiality of any such disseminated non-public information. Nothing in
      this
      Section 7.07 shall limit the obligation of the Servicers to comply with any
      applicable law prohibiting disclosure of information regarding the Mortgagors
      and the failure of a Servicer to provide access as provided in this Section
      7.07
      as a result of such obligation shall not constitute a breach of this Section.
      Nothing in this Section 7.07 shall require the Servicers to collect, create,
      collate or otherwise generate any information that it does not generate in
      its
      usual course of business. The Servicers shall not be required to make copies
      of
      or ship documents to any party unless provisions have been made for the
      reimbursement of the costs thereof. The Depositor may, but is not obligated
      to,
      enforce the obligations of the Master Servicer, Ocwen and GMAC under this
      Agreement and Countrywide under the Servicing Agreement and may, but is not
      obligated to, perform, or cause a designee to perform, any defaulted obligation
      of the Master Servicer, Ocwen or GMAC under this Agreement or Countrywide under
      the Servicing Agreement or exercise the rights of the Master Servicer or the
      related Servicer under this Agreement or the Servicing Agreement, as applicable;
      provided that neither the Master Servicer nor the Servicer shall be relieved
      of
      any of its obligations under this Agreement or the Servicing Agreement, as
      applicable, by virtue of such performance by the Depositor or its designee.
      The
      Depositor shall not have any responsibility or liability for any action or
      failure to act by the Master Servicer or the Servicers and is not obligated
      to
      supervise the performance of the Master Servicer or the Servicers under this
      Agreement or the Servicing Agreement, as applicable, or otherwise.

     

    
      
        
        

      

      
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    SECTION
      7.08. Duties
      of
      the Credit Risk Manager. 

     

    For
      and
      on behalf of the Depositor, the Credit Risk Manager will provide reports and
      recommendations concerning certain delinquent and defaulted Mortgage Loans,
      and
      as to the collection of any Prepayment Charges with respect to the Mortgage
      Loans. Such reports and recommendations will be based upon information provided
      to the Credit Risk Manager pursuant to the Credit Risk Management Agreements,
      and the Credit Risk Manager shall look solely to the Servicers and/or Master
      Servicer for all information and data (including loss and delinquency
      information and data) relating to the servicing of the related Mortgage Loans.
      Upon any termination of the Credit Risk Manager or the appointment of a
      successor Credit Risk Manager, the Depositor shall give written notice thereof
      to the Servicers, the Master Servicer, the Securities Administrator, the
      Trustee, and each Rating Agency. Notwithstanding the foregoing, the termination
      of the Credit Risk Manager pursuant to this Section shall not become effective
      until the appointment of a successor Credit Risk Manager. 

     

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

     

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

     

    
      
        
        

      

      
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    SECTION
      7.10. Removal
      of the Credit Risk Manager.

     

    The
      Credit Risk Manager may be removed as Credit Risk Manager by Certificateholders
      holding not less than 66 2/3% of the Voting Rights in the Trust Fund, in the
      exercise of its or their sole discretion. The Certificateholders shall provide
      written notice of the Credit Risk Manager’s removal to the Trustee. Upon receipt
      of such notice, the Trustee shall provide written notice to the Credit Risk
      Manager of its removal, which shall be effective upon receipt of such notice
      by
      the Credit Risk Manager, with a copy to the Securities Administrator and the
      Master Servicer.

     

    SECTION
      7.11. Transfer
      of Servicing by Sponsor to a Special Servicer.

     

    With
      respect to any Mortgage Loan serviced by Ocwen or Countrywide which becomes
      60
      or more days delinquent after the Closing Date, the Sponsor may, at its option,
      transfer the servicing responsibilities of such Servicer hereunder or under
      the
      Servicing Agreement, as applicable, with respect to such Mortgage Loan. With
      respect to any Mortgage Loan serviced by GMAC which becomes 60 or more days
      delinquent, the Sponsor shall transfer the servicing responsibilities of GMAC
      hereunder to a special servicer. No such servicing transfer shall become
      effective unless and until a successor to such Servicer shall have been
      appointed to service and administer the related Mortgage Loans pursuant to
      a
      special servicing agreement acceptable to the Depositor, the Master Servicer
      and
      the Trustee. No appointment shall be effective unless (i) such special servicer
      meets the Minimum Servicing Requirements and (ii) all amounts reimbursable
      to
      the related Servicer pursuant to the terms of this Agreement or the Servicing
      Agreement, as applicable, shall have been paid to the related Servicer by the
      special servicer including without limitation, all unreimbursed P&I Advances
      and Servicing Advances made by the related Servicer relating to such Mortgage
      Loan and all out-of-pocket expenses of the related Servicer incurred in
      connection with the transfer of servicing to such special servicer, all accrued
      and unpaid Servicing Fees relating to such Mortgage Loan and, in the case of
      Ocwen, reimbursement of the applicable portion of the purchase price paid by
      Ocwen for the servicing rights relating to such Mortgage Loans as set forth
      in a
      separate letter agreement with the Sponsor or an affiliate. The Sponsor shall
      provide a copy of the agreement executed by the special servicer to the Trustee
      and the Master Servicer. If the proposed special servicer does not meet the
      Minimum Servicing Requirements, the Sponsor shall be required to obtain written
      confirmation from the Rating Agencies that such appointment will not result
      in a
      downgrade, qualification or withdrawal of the then current rating of the Offered
      Certificates. The Sponsor shall notify the Credit Risk Manager of any transfer
      of servicing pursuant to this Section 7.11.

     

    
      
        
        

      

      
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    ARTICLE
      VIII

     

    DEFAULT

     

    SECTION
      8.01. Servicer
      Events of Default.

     

    (a) “Servicer
      Event of Default,” wherever used herein, means any one of the following
      events:

     

    (i) any
      failure by the related Servicer to remit to the Securities Administrator for
      distribution to the Certificateholders any payment (other than a P&I Advance
      required to be made from its own funds on any Servicer Remittance Date pursuant
      to Section 5.03 of this Agreement) required to be made by the Servicer under
      the
      terms of the Certificates and this Agreement which continues unremedied until
      3:00 p.m. New York time on the Business Day immediately following the date
      upon
      which written notice of such failure, requiring the same to be remedied, shall
      have been given to the related Servicer by the Depositor, the Securities
      Administrator or the Trustee (in which case notice shall be provided by
      telecopy), or to the Servicer, the Depositor and the Trustee by the NIMS Insurer
      or the Holders of Certificates entitled to at least 25% of the Voting Rights;
      or

     

    (ii) any
      failure on the part of the related Servicer duly to observe or perform in any
      material respect any other of the covenants or agreements on the part of the
      Servicer contained in this Agreement, or the material breach by the Servicer
      of
      any representation and warranty contained in Section 2.05, which continues
      unremedied for a period of thirty (30) days after the date on which written
      notice of such failure, requiring the same to be remedied, shall have been
      given
      to the related Servicer by the Depositor or the Trustee or to the Servicer,
      the
      Depositor and the Trustee by the NIMS Insurer or the Holders of Certificates
      entitled to at least 25% of the Voting Rights; provided, however, that in the
      case of a failure that cannot be cured within thirty (30) days, the cure period
      may be extended for an additional thirty (30) days if the related Servicer
      can
      demonstrate to the reasonable satisfaction of the Trustee that such Servicer
      is
      diligently pursuing remedial action; or

     

    (iii) a
      decree
      or order of a court or agency or supervisory authority having jurisdiction
      in
      the premises in an involuntary case under any present or future federal or
      state
      bankruptcy, insolvency or similar law or the appointment of a conservator or
      receiver or liquidator in any insolvency, readjustment of debt, marshalling
      of
      assets and liabilities or similar proceeding, or for the winding-up or
      liquidation of its affairs, shall have been entered against the related Servicer
      and such decree or order shall have remained in force undischarged or unstayed
      for a period of ninety (90) days; or

     

    (iv) the
      related Servicer shall consent to the appointment of a conservator or receiver
      or liquidator in any insolvency, readjustment of debt, marshalling of assets
      and
      liabilities or similar proceedings of or relating to it or of or relating to
      all
      or substantially all of its property; or

     

    
      
        
        

      

      
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    (v) the
      related Servicer shall admit in writing its inability to pay its debts generally
      as they become due, file a petition to take advantage of any applicable
      insolvency or reorganization statute, make an assignment for the benefit of
      its
      creditors, or voluntarily suspend payment of its obligations;

     

    (vi) failure
      by the related Servicer to duly perform, within the required time period, its
      obligations under Sections 3.17, 3.18 or 3.20; or 

     

    (vii) any
      failure of the related Servicer to make any P&I Advance on any Servicer
      Remittance Date required to be made from its own funds pursuant to Section
      5.03
      which continues unremedied until 3:00 p.m. New York time on the Business Day
      immediately following the related Servicer Remittance Date; or

     

    (viii) failure
      of the related Servicer to maintain at least an “average” rating from the Rating
      Agencies.

     

    A
      “Servicer Event of Default” whenever used herein means, with respect to
      Countrywide, an event of default by Countrywide under the Servicing
      Agreement.

     

    If
      a
      Servicer Event of Default described in clauses (i) through (vi) or (viii) of
      this Section or a corresponding Servicer Event of Default under the Servicing
      Agreement shall occur, then, and in each and every such case, so long as such
      Servicer Event of Default shall not have been remedied, the Depositor or the
      Trustee may, and at the written direction of the Holders of Certificates
      entitled to at least 51% of Voting Rights or at the direction of the NIMS
      Insurer, the Trustee shall, by notice in writing to the defaulting Servicer
      (and
      to the Depositor if given by the Trustee or to the Trustee if given by the
      Depositor) with a copy to the Master Servicer and each Rating Agency, terminate
      all of the rights and obligations of the defaulting Servicer in its capacity
      as
      a Servicer under this Agreement, to the extent permitted by law, and in and
      to
      the related Mortgage Loans and the proceeds thereof. If a Servicer Event of
      Default described in clause (vii) hereof or a corresponding Servicer Event
      of
      Default under the Servicing Agreement shall occur, the Trustee shall, by notice
      in writing to the defaulting Servicer, the Depositor and the Master Servicer,
      terminate all of the rights and obligations of the defaulting Servicer in its
      capacity as a Servicer under this Agreement and in and to the related Mortgage
      Loans and the proceeds thereof. Subject to Section 8.02, on or after the receipt
      by the defaulting Servicer of such written notice, all authority and power
      of
      the defaulting Servicer under this Agreement or the Servicing Agreement, as
      applicable, whether with respect to the Certificates (other than as a Holder
      of
      any Certificate) or the Mortgage Loans or otherwise, shall pass to and be vested
      in the Master Servicer pursuant to and under this Section, and, without
      limitation, the Master Servicer is hereby authorized and empowered, as
      attorney-in-fact or otherwise, to execute and deliver, on behalf of and at
      the
      expense of the defaulting Servicer, any and all documents and other instruments
      and to do or accomplish all other acts or things necessary or appropriate to
      effect the purposes of such notice of termination, whether to complete the
      transfer and endorsement or assignment of the Mortgage Loans and related
      documents, or otherwise. The defaulting Servicer agrees promptly (and in any
      event no later than ten (10) Business Days subsequent to such notice) to provide
      the Master Servicer with all documents and records requested by it to enable
      it
      to assume the defaulting Servicer’s functions under this Agreement, and to
      cooperate with the Master Servicer in effecting the termination of the
      defaulting Servicer’s responsibilities and rights under this Agreement,
      including, without limitation, the transfer within one (1) Business Day to
      the
      Master Servicer for administration by it of all cash amounts which at the time
      shall be or should have been credited by the defaulting Servicer to the related
      Collection Account held by or on behalf of the defaulting Servicer or thereafter
      be received with respect to the related Mortgage Loans or any related REO
      Property (provided, however, that the defaulting Servicer shall continue to
      be
      entitled to receive all amounts accrued or owing to it under this Agreement
      on
      or prior to the date of such termination, whether in respect of P&I
      Advances, Servicing Advances, accrued and unpaid Servicing Fees or otherwise,
      and shall continue to be entitled to the benefits of Section 7.03,
      notwithstanding any such termination, with respect to events occurring prior
      to
      such termination). Reimbursement of unreimbursed P&I Advances, Servicing
      Advances and accrued and unpaid Servicing Fees shall be made on a first in,
      first out (“FIFO”) basis no later than the related Servicer Remittance Date. For
      purposes of this Section 8.01(a), the Trustee shall not be deemed to have
      knowledge of a Servicer Event of Default unless a Responsible Officer of the
      Trustee assigned to and working in the Trustee’s Corporate Trust Office has
      actual knowledge thereof or unless written notice of any event which is in
      fact
      such a Servicer Event of Default is received by the Trustee at its Corporate
      Trust Office and such notice references the Certificates, the Trust or this
      Agreement. The Trustee shall promptly notify the Master Servicer and the Rating
      Agencies of the occurrence of a Servicer Event of Default of which it has
      knowledge as provided above.

     

    
      
        
        

      

      
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    The
      Master Servicer shall be entitled to be reimbursed by the defaulting Servicer
      (or from amounts on deposit in the Distribution Account if the defaulting
      Servicer is unable to fulfill its obligations hereunder) for all reasonable
      out-of-pocket or third party costs associated with the transfer of servicing
      from the defaulting Servicer, including without limitation, any reasonable
      out-of-pocket or third party costs or expenses associated with the complete
      transfer of all servicing data and the completion, correction or manipulation
      of
      such servicing data as may be required by the Master Servicer to correct any
      errors or insufficiencies in the servicing data or otherwise to enable the
      Master Servicer to service the related Mortgage Loans properly and effectively,
      upon presentation of reasonable documentation of such costs and
      expenses.

     

    (b) “Master
      Servicer Event of Default,” wherever used herein, means any one of the following
      events:

     

    (i) any
      failure on the part of the Master Servicer duly to observe or perform in any
      material respect any other of the covenants or agreements on the part of the
      Master Servicer contained in this Agreement, or the breach by the Master
      Servicer of any representation and warranty contained in Section 2.04, which
      continues unremedied for a period of 30 days after the date on which written
      notice of such failure, or after such other period as set forth in this
      Agreement, requiring the same to be remedied, shall have been given to the
      Master Servicer by the Depositor or the Trustee or to the Master Servicer,
      the
      Depositor and the Trustee by the Holders of Certificates entitled to at least
      25% of the Voting Rights; or

     

    (ii) a
      decree
      or order of a court or agency or supervisory authority having jurisdiction
      in
      the premises in an involuntary case under any present or future federal or
      state
      bankruptcy, insolvency or similar law or the appointment of a conservator or
      receiver or liquidator in any insolvency, readjustment of debt, marshalling
      of
      assets and liabilities or similar proceeding, or for the winding-up or
      liquidation of its affairs, shall have been entered against the Master Servicer
      and such decree or order shall have remained in force undischarged or unstayed
      for a period of 90 days; or

     

    
      
        
        

      

      
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    (iii) the
      Master Servicer shall consent to the appointment of a conservator or receiver
      or
      liquidator in any insolvency, readjustment of debt, marshalling of assets and
      liabilities or similar proceedings of or relating to it or of or relating to
      all
      or substantially all of its property; or

     

    (iv) the
      Master Servicer shall admit in writing its inability to pay its debts generally
      as they become due, file a petition to take advantage of any applicable
      insolvency or reorganization statute, make an assignment for the benefit of
      its
      creditors, or voluntarily suspend payment of its obligations; or

     

    (v) failure
      by the Master Servicer to duly perform, within the required time period, its
      obligations under Sections 4.15, 4.16, 4.17 or 4.18.

     

    If
      a
      Master Servicer Event of Default shall occur, then, and in each and every such
      case, so long as such Master Servicer Event of Default shall not have been
      remedied, the Depositor or the Trustee may, and at the written direction of
      the
      Holders of Certificates entitled to at least 51% of Voting Rights, the Trustee
      shall, by notice in writing to the Master Servicer (and to the Depositor if
      given by the Trustee or to the Trustee if given by the Depositor) with a copy
      to
      each Rating Agency, terminate all of the rights and obligations of the Master
      Servicer in its capacity as Master Servicer under this Agreement, to the extent
      permitted by law, and in and to the Mortgage Loans and the proceeds thereof.
      On
      or after the receipt by the Master Servicer of such written notice, all
      authority and power of the Master Servicer under this Agreement, whether with
      respect to the Certificates (other than as a Holder of any Certificate) or
      the
      Mortgage Loans or otherwise including, without limitation, the compensation
      payable to the Master Servicer under this Agreement, shall pass to and be vested
      in the Trustee pursuant to and under this Section, and, without limitation,
      the
      Trustee is hereby authorized and empowered, as attorney-in-fact or otherwise,
      to
      execute and deliver, on behalf of and at the expense of the Master Servicer,
      any
      and all documents and other instruments and to do or accomplish all other acts
      or things necessary or appropriate to effect the purposes of such notice of
      termination, whether to complete the transfer and endorsement or assignment
      of
      the Mortgage Loans and related documents, or otherwise. The Master Servicer
      agrees promptly (and in any event no later than ten Business Days subsequent
      to
      such notice) to provide the Trustee with all documents and records requested
      by
      it to enable it to assume the Master Servicer’s functions under this Agreement,
      and to cooperate with the Trustee in effecting the termination of the Master
      Servicer’s responsibilities and rights under this Agreement (provided, however,
      that the Master Servicer shall continue to be entitled to receive all amounts
      accrued or owing to it under this Agreement on or prior to the date of such
      termination and shall continue to be entitled to the benefits of Section 7.03,
      notwithstanding any such termination, with respect to events occurring prior
      to
      such termination). For purposes of this Section 8.01(b), the Trustee shall
      not
      be deemed to have knowledge of a Master Servicer Event of Default unless a
      Responsible Officer of the Trustee assigned to and working in the Trustee’s
      Corporate Trust Office has actual knowledge thereof or unless written notice
      of
      any event which is in fact such a Master Servicer Event of Default is received
      by the Trustee and such notice references the Certificates, the Trust or this
      Agreement. The Trustee shall promptly notify the Rating Agencies of the
      occurrence of a Master Servicer Event of Default of which it has knowledge
      as
      provided above.

     

    
      
        
        

      

      
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    On
      and
      after the time the Master Servicer receives a notice of termination, the Trustee
      shall be the successor in all respects to the Master Servicer (and, if
      applicable, the Securities Administrator) in its capacity as Master Servicer
      (and, if applicable, the Securities Administrator) under this Agreement and
      the
      transactions set forth or provided for herein, and all the responsibilities,
      duties and liabilities relating thereto and arising thereafter shall be assumed
      by the Trustee (except for any representations or warranties of the Master
      Servicer under this Agreement, the responsibilities, duties and liabilities
      contained in Section 2.03 and the obligation to deposit amounts in respect
      of
      losses pursuant to Section 3.10) by the terms and provisions hereof including,
      without limitation, but subject to the Master Servicer’s and Trustee’s
      determination of recoverability, the Master Servicer’s obligations to make
      P&I Advances no later than each Distribution Date pursuant to Section 5.03;
      provided, however, that if the Trustee is prohibited by law or regulation from
      obligating itself to make advances regarding delinquent mortgage loans, then
      the
      Trustee shall not be obligated to make P&I Advances pursuant to Section
      5.03; and provided further, that any failure to perform such duties or
      responsibilities caused by the Master Servicer’s failure to provide information
      required by Section 8.01 shall not be considered a default by the Trustee as
      successor to the Master Servicer hereunder and neither the Trustee nor any
      other
      successor master servicer shall be liable for any acts or omissions of the
      terminated master servicer. As compensation therefor, the Trustee shall be
      entitled to the Master Servicing Fee and all funds relating to the Loans,
      investment earnings on the Distribution Account and all other remuneration
      to
      which the Master Servicer would have been entitled if it had continued to act
      hereunder.

     

    Notwithstanding
      the foregoing, the Trustee may, if it shall be unwilling to continue to act,
      or
      shall, if it is unable to so act, petition a court of competent jurisdiction
      to
      appoint, or appoint on its own behalf, any established housing and home finance
      institution servicer, master servicer, servicing or mortgage servicing
      institution having a net worth of not less than $25,000,000 and meeting such
      other standards for a successor master servicer as are set forth in this
      Agreement, as the successor to such Master Servicer in the assumption of all
      of
      the responsibilities, duties or liabilities of a master servicer.

     

    To
      the
      extent that the costs and expenses of the Trustee related to the termination
      of
      the Master Servicer, appointment of a successor Master Servicer or the transfer
      and assumption of the master servicing by the Trustee (including, without
      limitation, (i) all legal costs and expenses and all due diligence costs and
      expenses associated with an evaluation of the potential termination of the
      Master Servicer as a result of a Master Servicer Event of Default and (ii)
      all
      costs and expenses associated with the complete transfer of the master
      servicing, including all servicing files and all servicing data and the
      completion, correction or manipulation of such servicing data as may be required
      by the successor Master Servicer to correct any errors or insufficiencies in
      the
      servicing data or otherwise to enable the successor Master Servicer to master
      service the Mortgage Loans in accordance with this Agreement) are not fully
      and
      timely reimbursed by the terminated Master Servicer, the Trustee shall be
      entitled to reimbursement of such costs and expenses from the Distribution
      Account. 

     

    
      
        
        

      

      
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    Neither
      the Trustee nor any other successor master servicer shall be deemed to be in
      default hereunder by reason of any failure to make, or any delay in making,
      any
      distribution hereunder or any portion thereof or any failure to perform, or
      any
      delay in performing, any duties or responsibilities hereunder, in either case
      caused by the failure of the Master Servicer to deliver or provide, or any
      delay
      in delivering or providing, any cash, information, documents or records to
      it.

     

    SECTION
      8.02. Master
      Servicer to Act; Appointment of Successor.

     

    (a) Subject
      to the following paragraph, on and after the time a Servicer receives a notice
      of termination, the Master Servicer shall be the successor in all respects
      to
      the related Servicer in its capacity as a Servicer under this Agreement or
      the
      Servicing Agreement, as applicable, and the transactions set forth or provided
      for herein, and all the responsibilities, duties and liabilities relating
      thereto and arising thereafter shall be assumed by the Master Servicer (except
      for any representations or warranties of the related Servicer under this
      Agreement or the Servicing Agreement, as applicable, the responsibilities,
      duties and liabilities contained in Section 2.03 and the obligation to deposit
      amounts in respect of losses pursuant to Section 3.10(b)) by the terms and
      provisions hereof including, without limitation, the related Servicer’s
      obligations to make P&I Advances pursuant to Section 5.03 of this Agreement
      or pursuant to the Servicing Agreement; provided, however, that if the Master
      Servicer is prohibited by law or regulation from obligating itself to make
      advances regarding delinquent mortgage loans, then the Master Servicer shall
      not
      be obligated to make P&I Advances pursuant to Section 5.03 of this
      Agreement; and provided further, that any failure to perform such duties or
      responsibilities caused by the related Servicer’s failure to provide information
      required by Section 8.01 shall not be considered a default by the Master
      Servicer as successor to such Servicer hereunder or under the Servicing
      Agreement; provided, however, that (1) it is understood and acknowledged by
      the
      parties hereto that there will be a period of transition (not to exceed 120
      days) before the actual servicing functions can be fully transferred to the
      Master Servicer or any successor servicer appointed in accordance with the
      following provisions and (2) any failure to perform such duties or
      responsibilities caused by the related Servicer’s failure to provide information
      required by Section 8.01 of this Agreement or under the Servicing Agreement
      shall not be considered a default by the Master Servicer as successor to such
      Servicer. As compensation therefor, the Master Servicer shall be entitled to
      the
      Servicing Fee and all funds relating to the Mortgage Loans to which the
      terminated Servicer would have been entitled if it had continued to act
      hereunder or under the Servicing Agreement. Notwithstanding the above and
      subject to the immediately following paragraph, the Master Servicer may, if
      it
      shall be unwilling to so act, or shall, if it is unable to so act promptly
      appoint or petition a court of competent jurisdiction to appoint, a Person
      that
      satisfies the eligibility criteria set forth below as the successor to the
      terminated Servicer under this Agreement or under the Servicing Agreement in
      the
      assumption of all or any part of the responsibilities, duties or liabilities
      of
      the terminated Servicer under this Agreement or under the Servicing
      Agreement.

     

    Notwithstanding
      any provision in this Agreement to the contrary, for a period of 30 days
      following the date on which Ocwen shall have received a notice of termination
      pursuant to Section 8.01 of this Agreement, Ocwen or its designee may appoint
      a
      successor Servicer with respect to the Ocwen Mortgage Loans that satisfies
      the
      eligibility criteria of a successor Servicer set forth below, which appointment
      shall be subject to the consent of the Depositor, the Sponsor, the Master
      Servicer, and the Trustee, which consent shall not be unreasonably withheld
      or
      delayed; provided that such successor Servicer agrees to fully effect the
      servicing transfer within 120 days following the termination of Ocwen and to
      make all P&I Advances that would otherwise be made by the Master Servicer
      under Section 8.01 as of the date of such appointment, and to reimburse the
      Master Servicer for any unreimbursed P&I Advances they have made and any
      reimbursable expenses that they may have incurred in connection with this
      Section 8.02. Any proceeds received in connection with the appointment of such
      successor Servicer shall be the property of Ocwen or its designee. This 30-day
      period shall terminate immediately (i) at the close of business on the second
      Business Day of such 30-day period if (A) Ocwen was terminated because of an
      Event of Default described in Section 8.01(a)(vii) for failing to make a
      required P&I Advance, and (B) Ocwen shall have failed to make (or cause to
      be made) such P&I Advance, or shall fail to reimburse (or cause to be
      reimbursed) the Master Servicer for a P&I Advance made by the Master
      Servicer, by the close of business on such second Business Day, or (ii) at
      the
      close of business on the second Business Day following the date (if any) during
      such 30-day period on which a P&I Advance is due to be made, if Ocwen shall
      have failed to make (or caused to be made) such P&I Advance, or Ocwen shall
      have failed to reimburse (or cause to be reimbursed) the Master Servicer for
      such P&I Advance, by the close of business on such second Business Day;
      provided, that such 30-day period shall only be terminated to the extent that
      the Servicing Rights Lender has received notice of such failure from the Master
      Servicer and the Servicing Rights Lender has not cured or caused the cure of
      such failure within two (2) Business Days following receipt of notice, provided,
      however, that such notice requirement shall only be applicable to the extent
      that the Master Servicer has been provided with the written address and contact
      information for the Servicing Rights Lender.

     

    
      
        
        

      

      
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    Notwithstanding
      anything herein to the contrary, in no event shall the Trustee or the Master
      Servicer be liable for any Servicing Fee or Master Servicing Fee, as applicable,
      or for any differential in the amount of the Servicing Fee or Master Servicing
      Fee, as applicable, or paid hereunder or under the Servicing Agreement and
      the
      amount necessary to induce any successor Servicer or successor Master Servicer
      to act as successor Servicer or successor Master Servicer under this Agreement
      or under the Servicing Agreement and the transactions set forth or provided
      for
      herein.

     

    Any
      successor servicer appointed under this Agreement must (i) be an established
      mortgage loan servicing institution that is a Fannie Mae and Freddie Mac
      approved seller/servicer, (ii) be approved by each Rating Agency by a written
      confirmation from each Rating Agency that the appointment of such successor
      servicer would not result in the reduction or withdrawal of the then current
      ratings of any outstanding Class of Certificates, (iii) have a net worth of
      not
      less than $25,000,000 and (iv) assume all the responsibilities, duties or
      liabilities of the Servicer (other than liabilities of the Servicer hereunder
      or
      under the Servicing Agreement incurred prior to termination of the Servicer
      under Section 8.01 herein) under this Agreement or under the Servicing Agreement
      as if originally named as a party to this Agreement or the Servicing Agreement,
      as applicable.

     

    (b) (1)
      All
      servicing transfer costs (including, without limitation, servicing transfer
      costs of the type described in Section 8.02(a) and incurred by the Trustee,
      the
      Master Servicer and any successor servicer under paragraph (b)(2) below) in
      connection with the termination of the Servicer shall be paid by the terminated
      Servicer upon presentation of reasonable documentation of such costs, and if
      such predecessor or initial Servicer, as applicable, defaults in its obligation
      to pay such costs, the successor servicer, the Master Servicer and the Trustee
      shall be entitled to reimbursement therefor from the assets of the Trust
      Fund.

     

    
      
        
        

      

      
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    (2)
      No
      appointment of a successor to a Servicer under this Agreement shall be effective
      until the assumption by the successor of all of the related Servicer’s
      responsibilities, duties and liabilities hereunder. In connection with such
      appointment and assumption described herein, the Trustee may make such
      arrangements for the compensation of such successor out of payments on the
      related Mortgage Loans as it and such successor shall agree; provided, however,
      that no such compensation shall be in excess of 50 basis points. The Depositor,
      the Trustee and such successor shall take such action, consistent with this
      Agreement, as shall be necessary to effectuate any such succession. Pending
      appointment of a successor to a Servicer under this Agreement, the Master
      Servicer shall act in such capacity as hereinabove provided.

     

    SECTION
      8.03. Notification
      to Certificateholders.

     

    (a) Upon
      any
      termination of any Servicer or the Master Servicer pursuant to the Servicing
      Agreement or Section 8.01(a) or (b) or any appointment of a successor to the
      related Servicer or the Master Servicer pursuant to the Servicing Agreement
      or
      Section 8.02, the Trustee shall give prompt written notice thereof to the
      Certificateholders at their respective addresses appearing in the Certificate
      Register.

     

    (b) Not
      later
      than the later of sixty (60) days after the occurrence of any event, which
      constitutes or which, with notice or lapse of time or both, would constitute
      a
      Servicer Event of Default or a Master Servicer Event of Default or five (5)
      days
      after a Responsible Officer of the Trustee becomes aware of the occurrence
      of
      such an event, the Trustee shall transmit by mail to all Holders of Certificates
      notice of each such occurrence, unless such default or Servicer Event of Default
      or Master Servicer Event of Default shall have been cured or
      waived.

     

    SECTION
      8.04. Waiver
      of
      Events of Default.

     

    The
      Holders representing at least 66% of the Voting Rights evidenced by all Classes
      of Certificates affected by any default, Servicer Event of Default or Master
      Servicer Event of Default hereunder may waive such default, Servicer Event
      of
      Default or Master Servicer Event of Default; provided, however, that a Servicer
      Event of Default under clause (i) or (vii) of Section 8.01(a) may be waived
      only
      by all of the Holders of the Regular Certificates. Upon any such waiver of
      a
      default, Servicer Event of Default or Master Servicer Event of Default, such
      default, Servicer Event of Default or Master Servicer Event of Default shall
      cease to exist and shall be deemed to have been remedied for every purpose
      hereunder. No such waiver shall extend to any subsequent or other default,
      Servicer Event of Default or Master Servicer Event of Default or impair any
      right consequent thereon except to the extent expressly so waived.

     

    
      
        
        

      

      
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    ARTICLE
      IX

    CONCERNING
      THE TRUSTEE AND THE SECURITIES ADMINISTRATOR

     

    SECTION
      9.01. Duties
      of
      Trustee and Securities Administrator.

     

    The
      Trustee, prior to the occurrence of a Master Servicer Event of Default and
      after
      the curing or waiver of all Master Servicer Events of Default which may have
      occurred, and the Securities Administrator each undertake to perform such duties
      and only such duties as are specifically set forth in this Agreement as duties
      of the Trustee and the Securities Administrator, respectively. During the
      continuance of a Master Servicer Event of Default, the Trustee shall exercise
      such of the rights and powers vested in it by this Agreement, and use the same
      degree of care and skill in its exercise as a prudent person would exercise
      or
      use under the circumstances in the conduct of such person’s own affairs. Any
      permissive right of the Trustee enumerated in this Agreement shall not be
      construed as a duty.

     

    Each
      of
      the Trustee and the Securities Administrator, upon receipt of all resolutions,
      certificates, statements, opinions, reports, documents, orders or other
      instruments furnished to it, which are specifically required to be furnished
      pursuant to any provision of this Agreement, shall examine them to determine
      whether they conform to the requirements of this Agreement. If any such
      instrument is found not to conform to the requirements of this Agreement in
      a
      material manner, the Trustee or the Securities Administrator, as the case may
      be, shall take such action as it deems appropriate to have the instrument
      corrected, and if the instrument is not corrected to its satisfaction, the
      Securities Administrator will provide notice to the Trustee thereof and the
      Trustee will provide notice to the Certificateholders and the NIMS
      Insurer.

     

    The
      Trustee shall promptly remit to the related Servicer any complaint, claim,
      demand, notice or other document (collectively, the “Notices”) delivered to the
      Trustee as a consequence of the assignment of any Mortgage Loan hereunder and
      relating to the servicing of the Mortgage Loans; provided than any such notice
      (i) is delivered to the Trustee at its Corporate Trust Office, (ii) contains
      information sufficient to permit the Trustee to make a determination that the
      real property to which such document relates is a Mortgaged Property. The
      Trustee shall have no duty hereunder with respect to any Notice it may receive
      or which may be alleged to have been delivered to or served upon it unless
      such
      Notice is delivered to it or served upon it at its Corporate Trust Office and
      such Notice contains the information required pursuant to clause (ii) of the
      preceding sentence.

     

    No
      provision of this Agreement shall be construed to relieve the Trustee or the
      Securities Administrator from liability for its own negligent action, its own
      negligent failure to act or its own misconduct; provided, however,
      that:

     

    (i) Prior
      to
      the occurrence of a Master Servicer Event of Default and after the curing or
      waiver of all such Master Servicer Events of Default which may have occurred
      with respect to the Trustee and at all times with respect to the Securities
      Administrator, the duties and obligations of the Trustee shall be determined
      solely by the express provisions of this Agreement, neither the Trustee nor
      the
      Securities Administrator shall be liable except for the performance of such
      duties and obligations as are specifically set forth in this Agreement, no
      implied covenants or obligations shall be read into this Agreement against
      the
      Trustee or the Securities Administrator and, in the absence of bad faith on
      the
      part of the Trustee or the Securities Administrator, respectively, the Trustee
      or the Securities Administrator, respectively, may conclusively rely, as to
      the
      truth of the statements and the correctness of the opinions expressed therein,
      upon any certificates or opinions furnished to the Trustee or the Securities
      Administrator, respectively, that conform to the requirements of this
      Agreement;

     

    
      
        
        

      

      
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    (ii) Neither
      the Trustee nor the Securities Administrator shall be liable for an error of
      judgment made in good faith by a Responsible Officer or Responsible Officers
      of
      the Trustee or an officer or officers of the Securities Administrator,
      respectively, unless it shall be proved that the Trustee or the Securities
      Administrator, respectively, was negligent in ascertaining the pertinent facts;
      and

     

    (iii) Neither
      the Trustee nor the Securities Administrator shall be liable with respect to
      any
      action taken, suffered or omitted to be taken by it in good faith in accordance
      with the direction of the NIMS Insurer or the Holders of Certificates entitled
      to at least 25% of the Voting Rights relating to the time, method and place
      of
      conducting any proceeding for any remedy available to the Trustee or the
      Securities Administrator or exercising any trust or power conferred upon the
      Trustee or the Securities Administrator under this Agreement.

     

    SECTION
      9.02. Certain
      Matters Affecting Trustee and Securities Administrator.

     

    (a) Except
      as
      otherwise provided in Section 9.01:

     

    (i) Before
      taking any action hereunder, the Trustee and the Securities Administrator may
      request and rely upon and shall be protected in acting or refraining from acting
      upon any resolution, Officers’ Certificate, certificate of auditors or any other
      certificate, statement, instrument, opinion, report, notice, request, consent,
      order, appraisal, bond or other paper or document reasonably believed by it
      to
      be genuine and to have been signed or presented by the proper party or
      parties;

     

    (ii) The
      Trustee and the Securities Administrator may consult with counsel of its
      selection and any advice of such counsel or any Opinion of Counsel shall be
      full
      and complete authorization and protection in respect of any action taken or
      suffered or omitted by it hereunder in good faith and in accordance with such
      advice or Opinion of Counsel;

     

    (iii) Neither
      the Trustee nor the Securities Administrator shall be under any obligation
      to
      exercise any of the trusts or powers vested in it by this Agreement or to
      institute, conduct or defend any litigation hereunder or in relation hereto
      at
      the request, order or direction of any of the Certificateholders or the NIMS
      Insurer, pursuant to the provisions of this Agreement, unless such
      Certificateholders or the NIMS Insurer, as applicable, shall have offered to
      the
      Trustee or the Securities Administrator, as the case may be, reasonable security
      or indemnity satisfactory to it against the costs, expenses and liabilities
      which may be incurred therein or thereby; nothing contained herein shall,
      however, relieve the Trustee of the obligation, upon the occurrence of a Master
      Servicer Event of Default (which has not been cured or waived), to exercise
      such
      of the rights and powers vested in it by this Agreement, and to use the same
      degree of care and skill in their exercise as a prudent person would exercise
      or
      use under the circumstances in the conduct of such person’s own
      affairs;

     

    
      
        
        

      

      
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    (iv) Neither
      the Trustee nor the Securities Administrator shall be liable for any action
      taken, suffered or omitted by it in good faith and believed by it to be
      authorized or within the discretion or rights or powers conferred upon it by
      this Agreement;

     

    (v) Prior
      to
      the occurrence of a Master Servicer Event of Default hereunder and after the
      curing or waiver of all Master Servicer Events of Default which may have
      occurred with respect to the Trustee and at all times with respect to the
      Securities Administrator, neither the Trustee nor the Securities Administrator
      shall be bound to make any investigation into the facts or matters stated in
      any
      resolution, certificate, statement, instrument, opinion, report, notice,
      request, consent, order, approval, bond or other paper or document, unless
      requested in writing to do so by the NIMS Insurer or the Holders of Certificates
      entitled to at least 25% of the Voting Rights; provided, however, that if the
      payment within a reasonable time to the Trustee or the Securities Administrator
      of the costs, expenses or liabilities likely to be incurred by it in the making
      of such investigation is, in the opinion of the Trustee or the Securities
      Administrator, as applicable, not reasonably assured to the Trustee or the
      Securities Administrator by such Certificateholders, the Trustee or the
      Securities Administrator, as applicable, may require reasonable indemnity
      satisfactory to it against such expense, or liability from such
      Certificateholders as a condition to taking any such action;

     

    (vi) The
      Trustee may execute any of the trusts or powers hereunder or perform any duties
      hereunder either directly or by or through agents or attorneys and the Trustee
      shall not be responsible for any misconduct or negligence on the part of any
      agent or attorney appointed with due care by it hereunder;

     

    (vii) The
      Trustee shall not be liable for any loss resulting from (a) the investment
      of
      funds held in the Collection Accounts, (b) the investment of funds held in
      the
      Distribution Account, (c) the investment of funds held in the Reserve Fund
      or
      (d) the redemption or sale of any such investment as therein
      authorized;

     

    (viii) The
      Trustee shall not be deemed to have notice of any default, Master Servicer
      Event
      of Default or Servicer Event of Default unless a Responsible Officer of the
      Trustee has actual knowledge thereof or unless written notice of any event
      which
      is in fact such a default is received by a Responsible Officer of the Trustee
      at
      the Corporate Trust Office of the Trustee, and such notice references the
      Certificates and this Agreement;

     

    
      
        
        

      

      
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    (ix) The
      rights, privileges, protections, immunities and benefits given to the Trustee,
      including, without limitation, its right to be indemnified, are extended to,
      and
      shall be enforceable by, each agent, custodian and other Person employed to
      act
      hereunder; and

     

    (x) Should
      the Trustee or the Securities Administrator deem the nature of any action
      required on its part to be unclear, the Trustee or the Securities Administrator
      may require prior to taking such action that it be provided by the Depositor
      with reasonable further instructions.

     

    (xi) No
      provision of this Agreement shall require the Trustee (regardless of the
      capacity in which it is acting) to expend or risk its own funds or otherwise
      incur any 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 for believing that repayment of such funds or adequate indemnity against
      risk or liability is not reasonably assured to it.

     

    (xii) The
      Trustee shall not have any duty to conduct any affirmative investigation as
      to
      the occurrence of any condition requiring the repurchase of any Mortgage Loan
      by
      the Sponsor pursuant to this Agreement or the Mortgage Loan Purchase Agreement,
      as applicable, or the eligibility of any Mortgage Loan for purposes of this
      Agreement.

     

    (b) All
      rights of action under this Agreement or under any of the Certificates,
      enforceable by the Trustee, may be enforced by it without the possession of
      any
      of the Certificates, or the production thereof at the trial or other proceeding
      relating thereto, and any such suit, action or proceeding instituted by the
      Trustee shall be brought in its name for the benefit of all the Holders of
      such
      Certificates, subject to the provisions of this Agreement.

     

    (c) The
      Trustee, not in its individual capacity but solely in its separate capacity
      as
      Supplemental Interest Trust Trustee, is hereby directed to exercise the rights,
      perform the obligations, and make any representations to be exercised,
      performed, or made by the Supplemental Interest Trust Trustee, as described
      herein. The Supplemental Interest Trust Trustee is hereby directed to execute
      and deliver the Swap Agreement on behalf of Party B (as defined therein) and
      to
      exercise the rights, perform the obligations, and make the representations
      of
      Party B thereunder, solely in its capacity as Supplemental Interest Trust
      Trustee on behalf of Party B (as defined therein) and not in its individual
      capacity. 

     

    The
      Sponsor, the Servicers, the Depositor and the Certificateholders (by acceptance
      of their Certificates) acknowledge and agree that:

     

    (i) the
      Supplemental Interest Trust Trustee shall execute and deliver the Swap Agreement
      on behalf of Party B (as defined therein), 

     

    (ii) the
      Supplemental Interest Trust Trustee shall exercise the rights, perform the
      obligations, and make the representations of Party B thereunder, solely in
      its
      capacity as Supplemental Interest Trust Trustee on behalf of Party B (as defined
      therein) and not in its individual capacity, and

     

    
      
        
        

      

      
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    (iii) the
      Securities Administrator shall also be entitled to exercise the rights and
      obligated to perform the obligations of Party B under the Swap
      Agreement.

     

    Every
      provision of this Agreement relating to the conduct or affecting the liability
      of or affording protection to the Trustee’s execution, as Supplemental Interest
      Trust Trustee, of the Swap Agreement, and the performance of its duties and
      satisfaction of its obligations thereunder.

     

    (d) The
      Trustee is hereby directed to exercise the rights, perform the obligations,
      and
      make any representations to be exercised, performed, or made, as described
      herein. The Trustee is hereby directed to execute and deliver the Cap Contracts
      on behalf of Party B (as defined therein) and to exercise the rights, perform
      the obligations, and make the representations of Party B thereunder, solely
      in
      its capacity as Trustee on behalf of Party B (as defined therein) and not in
      its
      individual capacity.

     

    The
      Sponsor, the Servicer, the Depositor and the Certificateholders by acceptance
      of
      their Certificates acknowledge and agree that:

     

    (i) the
      Trustee shall execute and deliver the Cap Contracts for Party B (as defined
      therein) 

     

    (ii) the
      Trustee shall exercise the rights, perform the obligations, and make the
      representations of Party B thereunder, solely in its capacity as Trustee on
      behalf of Party B (as defined therein) and not in its individual capacity,
      and

     

    (iii) the
      Securities Administrator shall also be entitled to exercise the rights and
      obligated to perform the obligations of Party B under the Cap
      Contracts.

     

    Every
      provision of this Agreement relating to the conduct or affecting the liability
      of or affording protection to the Trustee shall apply to the Trustee’s execution
      of the Cap Contracts, and the performance of its duties and satisfaction of
      its
      obligations thereunder.

     

    Every
      provision of this Agreement relating to the conduct or affecting the liability
      of or affording protection to the Securities Administrator shall apply to the
      Securities Administrator’s execution of the Cap Contracts, and the performance
      of its duties and satisfaction of its obligations thereunder.

     

    (e) The
      Trustee is hereby directed to execute and deliver the Cap Contracts for Party
      B
      (as defined therein) and to perform the obligations of Party B thereunder on
      the
      Closing Date and thereafter on behalf of the Holders of the Certificates. The
      Sponsor, the Depositor and the Certificateholders by acceptance of their
      Certificates acknowledge and agree that the Trustee shall execute and deliver
      the Cap Contracts for Party B (as defined therein) and to perform the
      obligations of Party B thereunder and shall do so solely in its capacity as
      Trustee and not in its individual capacity. The Trustee is hereby directed
      and
      does hereby direct the Securities Administrator and the Securities Administrator
      is hereby empowered under this Agreement to act on behalf of the Trustee. Any
      funds payable by the Securities Administrator under the Cap Contracts at closing
      shall be paid by the Depositor. Notwithstanding anything to the contrary
      contained herein, neither the Trustee nor the Securities Administrator shall
      be
      required to make any payments to the Cap Counterparty under the Cap Contracts
      unless otherwise set forth in the Cap Contracts.

     

    
      
        
        

      

      
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    (f) None
      of
      the Securities Administrator, the Master Servicer, the Servicers, the Sponsor,
      the Depositor, the Custodians or the Trustee shall be responsible for the acts
      or omissions of the others or the Swap Provider, it being understood that this
      Agreement shall not be construed to render those partners joint venturers or
      agents of one another.

     

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

     

    The
      recitals contained herein and in the Certificates (other than the signature
      of
      the Securities Administrator, the authentication of the Securities Administrator
      on the Certificates, the acknowledgments of the Trustee contained in Article
      II
      and the representations and warranties of the Trustee in Sections 2.11 and
      9.12)
      shall be taken as the statements of the Depositor and neither the Trustee nor
      the Securities Administrator assumes any responsibility for their correctness.
      Neither the Trustee nor the Securities Administrator makes any representations
      or warranties as to the validity or sufficiency of this Agreement (other than
      as
      specifically set forth in Section 9.12), the Swap Agreement or of the
      Certificates (other than the signature of the Securities Administrator and
      authentication of the Securities Administrator on the Certificates) or of any
      Mortgage Loan or related document. The Trustee and the Securities Administrator
      shall not be accountable for the use or application by the Depositor of any
      of
      the Certificates or of the proceeds of such Certificates, or for the use or
      application of any funds paid to the Depositor or the Master Servicer in respect
      of the Mortgage Loans or deposited in or withdrawn from the Collection Account
      by the Servicer, other than with respect to the Securities Administrator any
      funds held by it or on behalf of the Trustee in accordance with Sections 3.24,
      3.25 and 5.07 of this Agreement.

     

    SECTION
      9.04. Trustee
      and Securities Administrator May Own Certificates.

     

    Each
      of
      the Trustee and the Securities Administrator in its individual capacity or
      any
      other capacity may become the owner or pledgee of Certificates and may transact
      business with other interested parties and their Affiliates with the same rights
      it would have if it were not Trustee or the Securities
      Administrator.

     

    SECTION
      9.05. Fees
      and
      Expenses of Trustee, Custodians and Securities Administrator.

     

    The
      fees
      of the Trustee and the Securities Administrator hereunder, of Wells Fargo as
      the
      Custodian under the Wells Fargo Custodial Agreement and of DBNTC as the
      Custodian under the DBNTC Custodial Agreement shall be paid in accordance with
      a
      side letter agreement with the Master Servicer and at the sole expense of the
      Master Servicer. In addition, the Trustee, the Securities Administrator, the
      Custodians and any director, officer, employee or agent of the Trustee, the
      Securities Administrator and the Custodians shall be indemnified by the Trust
      and held harmless against any loss, liability or expense (including reasonable
      attorney’s fees and expenses) incurred by the Trustee, the Custodians or the
      Securities Administrator in connection with any claim or legal action or any
      pending or threatened claim or legal action arising out of or in connection
      with
      the acceptance or administration of its respective obligations and duties under
      this Agreement, including the Swap Agreement and any and all other agreements
      related hereto, other than any loss, liability or expense, as applicable (i)
      solely with respect to the Trustee, for which the Trustee is indemnified by
      the
      Master Servicer or a Servicer, (ii) that constitutes a specific liability of
      the
      Trustee or the Securities Administrator pursuant to Section 11.01(g) or (iii)
      any loss, liability or expense incurred by reason of willful misfeasance, bad
      faith or negligence in the performance of duties hereunder by the Trustee or
      the
      Securities Administrator, as applicable, or by reason of reckless disregard
      of
      obligations and duties hereunder. In no event shall the Trustee, the Custodians,
      the Master Servicer or the Securities Administrator be liable for special,
      indirect or consequential loss or damage of any kind whatsoever (including
      but
      not limited to lost profits), even if it has been advised of the likelihood
      of
      such loss or damage and regardless of the form of action. The Master Servicer
      agrees to indemnify the Trustee, from, and hold the Trustee harmless against,
      any loss, liability or expense (including reasonable attorney’s fees and
      expenses) incurred by the Trustee by reason of the Master Servicer’s willful
      misfeasance, bad faith or gross negligence in the performance of its duties
      under this Agreement or by reason of the Master Servicer’s reckless disregard of
      its obligations and duties under this Agreement. In addition, the Sponsor agrees
      to indemnify the Trustee for, and to hold the Trustee harmless against, any
      loss, liability or expense arising out of, or in connection with, the provisions
      set forth in the last paragraph of Section 2.01, including, without limitation,
      all costs, liabilities and expenses (including reasonable legal fees and
      expenses) of investigating and defending itself against any claim, action or
      proceeding, pending or threatened, relating to the provisions of such paragraph.
      The indemnities in this Section 9.05 shall survive the termination or discharge
      of this Agreement and the resignation or removal of the Master Servicer, the
      Trustee, the Securities Administrator or the Custodians. Any payment under
      this
      Section 9.05 made by the Master Servicer to the Trustee in respect of the
      Trustee’s fees or the Master Servicer’s indemnification obligation to the
      Trustee shall be from the Master Servicer’s own funds, without reimbursement
      from REMIC I therefor.

     

    
      
        
        

      

      
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    SECTION
      9.06. Eligibility
      Requirements for Trustee and Securities Administrator.

     

    The
      Trustee and the Securities Administrator shall at all times be a corporation
      or
      an association (other than the Depositor, the Sponsor, the Master Servicer
      or
      any Affiliate of the foregoing) organized and doing business under the laws
      of
      any state or the United States of America, authorized under such laws to
      exercise corporate trust powers, having a combined capital and surplus of at
      least $50,000,000 (or a member of a bank holding company whose capital and
      surplus is at least $50,000,000) and subject to supervision or examination
      by
      federal or state authority. If such corporation or association publishes reports
      of conditions at least annually, pursuant to law or to the requirements of
      the
      aforesaid supervising or examining authority, then for the purposes of this
      Section the combined capital and surplus of such corporation or association
      shall be deemed to be its combined capital and surplus as set forth in its
      most
      recent report of conditions so published. In case at any time the Trustee or
      the
      Securities Administrator, as applicable, shall cease to be eligible in
      accordance with the provisions of this Section, the Trustee or the Securities
      Administrator, as applicable, shall resign immediately in the manner and with
      the effect specified in Section 9.07.

     

    
      
        
        

      

      
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    Additionally,
      the Securities Administrator (i) may not be an originator, Servicer, the
      Depositor or an affiliate of the Depositor unless the Securities Administrator
      is in an institutional trust department, (ii) must be authorized to exercise
      corporate trust powers under the laws of its jurisdiction of organization,
      and
      (iii) must be rated at least "A/F1" by Fitch, if Fitch is a Rating Agency,
      or
      the equivalent rating by S&P (or such rating acceptable to Fitch pursuant to
      a rating confirmation). If no successor securities administrator shall have
      been
      appointed and shall have accepted appointment within 60 days after Wells Fargo
      Bank, National Association, as Securities Administrator, ceases to be the
      securities administrator pursuant to this Section 9.06, then the Trustee shall
      petition any court of competent jurisdiction, at the expense of the Trust,
      for
      the appointment of a successor securities administrator which satisfies the
      eligibility criteria set forth herein. The Trustee shall notify the Rating
      Agencies of any change of Securities Administrator.

     

    SECTION
      9.07. Resignation
      and Removal of Trustee and Securities Administrator.

     

    The
      Trustee and the Securities Administrator may at any time resign and be
      discharged from the trust hereby created by giving written notice thereof to
      the
      Depositor, to the Master Servicer, to the Securities Administrator (or the
      Trustee, if the Securities Administrator resigns), to the NIMS Insurer and
      to
      the Certificateholders. Upon receiving such notice of resignation, the Depositor
      shall promptly appoint a successor trustee or successor securities administrator
      acceptable to the NIMS Insurer by written instrument, in duplicate, which
      instrument shall be delivered to the resigning Trustee or Securities
      Administrator, as applicable, and to the successor trustee or successor
      securities administrator, as applicable. A copy of such instrument shall be
      delivered to the Certificateholders, the Trustee, the Securities Administrator
      and the Master Servicer by the Depositor. If no successor trustee or successor
      securities administrator shall have been so appointed and have accepted
      appointment within thirty (30) days after the giving of such notice of
      resignation, the resigning Trustee or Securities Administrator, as the case
      may
      be, may, at the expense of the Trust Fund, petition any court of competent
      jurisdiction for the appointment of a successor trustee, successor securities
      administrator, Trustee or Securities Administrator, as applicable.

     

    If
      at any
      time the Trustee or the Securities Administrator shall cease to be eligible
      in
      accordance with the provisions of Section 9.06 and shall fail to resign after
      written request therefor by the Depositor, or if at any time the Trustee or
      the
      Securities Administrator shall become incapable of acting, or shall be adjudged
      bankrupt or insolvent, or a receiver of the Trustee or the Securities
      Administrator or of its property shall be appointed, or any public officer
      shall
      take charge or control of the Trustee or the Securities Administrator or of
      its
      property or affairs for the purpose of rehabilitation, conservation or
      liquidation, then the Depositor or the NIMS Insurer may remove the Trustee
      or
      the Securities Administrator, as applicable and the Depositor shall appoint
      a
      successor trustee or successor securities administrator, as applicable,
      acceptable to the NIMS Insurer by written instrument, in duplicate, which
      instrument shall be delivered to the Trustee or the Securities Administrator
      so
      removed and to the successor trustee or successor securities administrator.
      A
      copy of such instrument shall be delivered to the Certificateholders, the
      Trustee, the Securities Administrator and the Master Servicer by the
      Depositor.

     

    
      
        
        

      

      
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    The
      Holders of Certificates entitled to at least 51% of the Voting Rights (or the
      NIMS Insurer upon the failure of the Trustee to perform its obligations
      hereunder) may at any time remove the Trustee or the Securities Administrator
      and appoint a successor trustee or successor securities administrator acceptable
      to the NIMS Insurer by written instrument or instruments, in triplicate, signed
      by such Holders or their attorneys-in-fact duly authorized, one complete set
      of
      which instruments shall be delivered to the Depositor, one complete set to
      the
      Trustee or the Securities Administrator so removed and one complete set to
      the
      successor so appointed. A copy of such instrument shall be delivered to the
      Certificateholders, the Trustee (in the case of the removal of the Securities
      Administrator), the Securities Administrator (in the case of the removal of
      the
      Trustee) and the Master Servicer by the Depositor.

     

    Any
      resignation or removal of the Trustee or the Securities Administrator and
      appointment of a successor trustee or successor securities administrator
      pursuant to any of the provisions of this Section shall not become effective
      until acceptance of appointment by the successor trustee or successor securities
      administrator, as applicable, as provided in Section 9.08.

     

    Any
      Person appointed as successor trustee pursuant to Section 9.07 shall also be
      required to serve as successor supplemental interest trust trustee.

     

    Notwithstanding
      anything to the contrary contained herein, the Master Servicer and the
      Securities Administrator shall at all times be the same Person.

     

    SECTION
      9.08. Successor
      Trustee or Securities Administrator.

     

    Any
      successor trustee or successor securities administrator appointed as provided
      in
      Section 9.07 shall execute, acknowledge and deliver to the Depositor and its
      predecessor trustee or predecessor securities administrator an instrument
      accepting such appointment hereunder, and thereupon the resignation or removal
      of the predecessor trustee or predecessor securities administrator shall become
      effective and such successor trustee or successor securities administrator
      without any further act, deed or conveyance, shall become fully vested with
      all
      the rights, powers, duties and obligations of its predecessor hereunder, with
      the like effect as if originally named as trustee or securities administrator
      herein. The predecessor trustee or predecessor securities administrator shall
      deliver to the successor trustee or successor securities administrator all
      Mortgage Loan Documents and related documents and statements to the extent
      held
      by it hereunder, as well as all monies, held by it hereunder, and the Depositor
      and the predecessor trustee or predecessor securities administrator shall
      execute and deliver such instruments and do such other things as may reasonably
      be required for more fully and certainly vesting and confirming in the successor
      trustee or successor securities administrator all such rights, powers, duties
      and obligations.

     

    No
      successor trustee or successor securities administrator shall accept appointment
      as provided in this Section unless at the time of such acceptance such successor
      trustee or successor securities administrator shall be eligible under the
      provisions of Section 9.06 and the appointment of such successor trustee or
      successor securities administrator shall not result in a downgrading of any
      Class of Certificates by any Rating Agency, as evidenced by a letter from each
      Rating Agency.

     

    
      
        
        

      

      
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    Upon
      acceptance of appointment by a successor trustee or successor securities
      administrator as provided in this Section, the Depositor shall mail notice
      of
      the succession of such trustee hereunder to all Holders of Certificates at
      their
      addresses as shown in the Certificate Register. If the Depositor fails to mail
      such notice within ten (10) days after acceptance of appointment by the
      successor trustee or successor securities administrator, the successor trustee
      or successor securities administrator shall cause such notice to be mailed
      at
      the expense of the Depositor.

     

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

     

    Any
      corporation or association into which the Trustee or the Securities
      Administrator may be merged or converted or with which it may be consolidated
      or
      any corporation or association resulting from any merger, conversion or
      consolidation to which the Trustee or the Securities Administrator shall be
      a
      party, or any corporation or association succeeding to the business of the
      Trustee or the Securities Administrator shall be the successor of the Trustee
      or
      the Securities Administrator hereunder, provided such corporation or association
      shall be eligible under the provisions of Section 9.06, without the execution
      or
      filing of any paper or any further act on the part of any of the parties hereto,
      anything herein to the contrary notwithstanding.

     

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

     

    Notwithstanding
      any other provisions hereof, at any time, for the purpose of meeting any legal
      requirements of any jurisdiction in which any part of the REMIC I or property
      securing the same may at the time be located, the Trustee shall have the power
      and shall execute and deliver all instruments to appoint one or more Persons
      approved by the Trustee to act as co-trustee or co-trustees, jointly with the
      Trustee, or separate trustee or separate trustees, of all or any part of REMIC
      I, and to vest in such Person or Persons, in such capacity, and for the benefit
      of the Holders of the Certificates, such title to REMIC I, or any part thereof,
      and, subject to the other provisions of this Section 9.10, such powers, duties,
      obligations, rights and trusts as the Trustee may consider necessary or
      desirable. Any such co-trustee or separate trustee shall be subject to the
      written approval of the Mezzanine Insurers, the NIMS Insurer. If the NIMS
      Insurer shall not have joined in such appointment within 15 days after the
      receipt by it of a request to do so, the Trustee alone shall have the power
      to
      make such appointment. No co-trustee or separate trustee hereunder shall be
      required to meet the terms of eligibility as a successor trustee under Section
      9.06 hereunder and no notice to Holders of Certificates of the appointment
      of
      co-trustee(s) or separate trustee(s) shall be required under Section 9.08
      hereof.

     

    In
      the
      case of any appointment of a co-trustee or separate trustee pursuant to this
      Section 9.10 all rights, powers, duties and obligations conferred or imposed
      upon the Trustee shall be conferred or imposed upon and exercised or performed
      by the Trustee and such separate trustee or co-trustee jointly, except to the
      extent that under any law of any jurisdiction in which any particular act or
      acts are to be performed by the Trustee (whether as Trustee hereunder or as
      successor to a defaulting Master Servicer hereunder), the Trustee shall be
      incompetent or unqualified to perform such act or acts, in which event such
      rights, powers, duties and obligations (including the holding of title to REMIC
      I or any portion thereof in any such jurisdiction) shall be exercised and
      performed by such separate trustee or co-trustee at the direction of the
      Trustee.

     

    
      
        
        

      

      
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    Any
      notice, request or other writing given to the Trustee shall be deemed to have
      been given to each of the then separate trustees and co-trustees, as effectively
      as if given to each of them. Every instrument appointing any separate trustee
      or
      co-trustee shall refer to this Agreement and the conditions of this Article
      IX.
      Each separate trustee and co-trustee, upon its acceptance of the trust
      conferred, shall be vested with the estates or property specified in its
      instrument of appointment, either jointly with the Trustee, or separately,
      as
      may be provided therein, subject to all the provisions of this Agreement,
      specifically including every provision of this Agreement relating to the conduct
      of, affecting the liability of, or affording protection to, the Trustee. Every
      such instrument shall be filed with the Trustee and a copy thereof given to
      the
      NIMS Insurer.

     

    Any
      separate trustee or co-trustee may, at any time, constitute the Trustee, its
      agent or attorney-in-fact, with full power and authority, to the extent not
      prohibited by law, to do any lawful act under or in respect of this Agreement
      on
      its behalf and in its name. If any separate trustee or co-trustee shall die,
      become incapable of acting, resign or be removed, all of its estates,
      properties, rights, remedies and trusts shall vest in and be exercised by the
      Trustee, to the extent permitted by law, without the appointment of a new or
      successor trustee or co-trustee.

     

    SECTION
      9.11. Appointment
      of Office or Agency.

     

    The
      Certificates may be surrendered for registration of transfer or exchange at
      the
      Securities Administrator’s office located at Sixth Street and Marquette Avenue,
      Minneapolis, Minnesota 55479, and presented for final distribution at the
      Corporate Trust Office of the Securities Administrator where notices and demands
      to or upon the Securities Administrator in respect of the Certificates and
      this
      Agreement may be served.

     

    SECTION
      9.12. Representations
      and Warranties.

     

    The
      Trustee hereby represents and warrants to the Master Servicer, the Securities
      Administrator, the Servicer and the Depositor as applicable, as of the Closing
      Date, that:

     

    (i) It
      is a
      national banking association duly organized, validly existing and in good
      standing under the laws of the United States of America.

     

    (ii) The
      execution and delivery of this Agreement by it, and the performance and
      compliance with the terms of this Agreement by it, will not violate its articles
      of association or bylaws or constitute a default (or an event which, with notice
      or lapse of time, or both, would constitute a default) under, or result in
      the
      breach of, any material agreement or other instrument to which it is a party
      or
      which is applicable to it or any of its assets.

     

    (iii) It
      has
      the full power and authority to enter into and consummate all transactions
      contemplated by this Agreement, has duly authorized the execution, delivery
      and
      performance of this Agreement, and has duly executed and delivered this
      Agreement.

     

    
      
        
        

      

      
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    (iv) This
      Agreement, assuming due authorization, execution and delivery by the other
      parties hereto, constitutes a valid, legal and binding obligation of it,
      enforceable against it in accordance with the terms hereof, subject to (A)
      applicable bankruptcy, insolvency, receivership, reorganization, moratorium
      and
      other laws affecting the enforcement of creditors’ rights generally, and (B)
      general principles of equity, regardless of whether such enforcement is
      considered in a proceeding in equity or at law.

     

    (v) It
      is not
      in violation of, and its execution and delivery of this Agreement and its
      performance and compliance with the terms of this Agreement will not constitute
      a violation of, any law, any order or decree of any court or arbiter, or any
      order, regulation or demand of any federal, state or local governmental or
      regulatory authority, which violation, in its good faith and reasonable
      judgment, is likely to affect materially and adversely either the ability of
      it
      to perform its obligations under this Agreement or its financial
      condition.

     

    (vi) No
      litigation is pending or, to the best of its knowledge, threatened against
      it,
      which would prohibit it from entering into this Agreement or, in its good faith
      reasonable judgment, is likely to materially and adversely affect either the
      ability of it to perform its obligations under this Agreement or its financial
      condition.

     

    
      
        
        

      

      
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    ARTICLE
      X

    TERMINATION

     

    SECTION
      10.01. Termination
      Upon Repurchase or Liquidation of All Mortgage Loans.

     

    (a) Subject
      to Section 10.02, the respective obligations and responsibilities under this
      Agreement of the Depositor, the Master Servicer, the Securities Administrator,
      the Servicers and the Trustee (other than the obligations of the Master Servicer
      to the Trustee pursuant to Section 9.05 and of the Servicers to make remittances
      to the Securities Administrator and the Securities Administrator to make
      payments in respect of the REMIC I Regular Interests, REMIC I Regular Interests
      or the Classes of Certificates as hereinafter set forth) shall terminate upon
      payment to the Certificateholders and the deposit of all amounts held by or
      on
      behalf of the Trustee and required hereunder to be so paid or deposited on
      the
      Distribution Date coinciding with or following the earlier to occur of (i)
      the
      purchase by the Terminator (as defined below) of all Mortgage Loans and each
      REO
      Property remaining in REMIC I and (ii) the final payment or other liquidation
      (or any advance with respect thereto) of the last Mortgage Loan or REO Property
      remaining in REMIC I; provided, however, that in no event shall the trust
      created hereby continue beyond the earlier of (i) the expiration of 21 years
      from the death of the last survivor of the descendants of Joseph P. Kennedy,
      the
      late ambassador of the United States to the Court of St. James, living on the
      date hereof and (ii) the Last Scheduled Distribution Date. The purchase by
      the
      Terminator of all Mortgage Loans and each REO Property remaining in REMIC I
      shall be at a price (the “Termination Price”) equal to the sum of (i) the
      greater of (A) the aggregate Purchase Price of all the Mortgage Loans included
      in REMIC I, plus the appraised value of each REO Property, if any, included
      in
      REMIC I, such appraisal to be conducted by an appraiser mutually agreed upon
      by
      the Terminator and the Trustee in their reasonable discretion and (B) the
      aggregate fair market value of all of the assets of REMIC I (as determined
      by
      the Terminator (defined below) and the Trustee, as of the close of business
      on
      the third Business Day next preceding the date upon which notice of any such
      termination is furnished to Certificateholders pursuant to the third paragraph
      of this Section 10.01), (ii) any amounts due and owing to the Swap Provider
      under the Swap Agreement and any previous swap provider as of the termination
      date (including a Swap Termination Payment owed to the Swap Provider in
      connection with such optional termination) plus (iii) any amounts due the
      Servicers and the Master Servicer in respect of unpaid Servicing Fees, Master
      Servicing Fees and outstanding P&I Advances and Servicing Advances;
      provided, however, such option may only be exercised if the Termination Price
      is
      sufficient to pay all interest accrued on, as well as amounts necessary to
      retire the principal balance of, each class of notes issued pursuant to the
      Indenture and any remaining amounts owed to the trustee under the Indenture
      and
      the NIMS Insurer on the date such notes are retired . 

     

    (b) The
      Master Servicer or, if the Master Servicer fails to exercise such optional
      termination right, Ocwen (either the Master Servicer or Ocwen, the “Terminator”)
      shall have the right to purchase all of the Mortgage Loans and each REO Property
      remaining in REMIC I pursuant to clause (i) of the preceding paragraph no later
      than the Determination Date in the month immediately preceding the Distribution
      Date on which the Certificates will be retired; provided, however, that the
      Terminator may elect to purchase all of the Mortgage Loans on a servicing
      retained basis and each REO Property remaining in REMIC I pursuant to clause
      (i)
      above only if the aggregate Scheduled Principal Balance of the Mortgage Loans
      and each REO Property remaining in the Trust Fund at the time of such election
      has been reduced to less than or equal to 10% of the aggregate Scheduled
      Principal Balance of the Mortgage Loans as of the Cut-off Date plus the Original
      Pre-Funded Amount. By acceptance of the Residual Certificates, the Holder of
      the
      Residual Certificates agrees for so long as any notes insured by the NIMS
      Insurer and secured by all or a portion of the Class CE-1, Class P or Class
      R
      Certificates are outstanding, in connection with any termination hereunder,
      to
      assign and transfer any amounts in excess of par, and to the extent received
      in
      respect of such termination, to pay any such amounts to the Holders of the
      Class
      CE-1 Certificates. Notwithstanding the foregoing, the optional termination
      right
      may only be exercised by Ocwen if (1) Ocwen receives written notification from
      the Master Servicer that the Master Servicer will not exercise such optional
      termination right or (2) Ocwen does not receive such written notification from
      the Master Servicer, and the Master Servicer fails to exercise its optional
      termination right by the third Distribution Date following the date such right
      became exercisable; provided, however, in no event shall a Servicer exercise
      its
      optional termination right under (1) or (2) above unless it first provides
      written notice to the Authorized Officers of the Sponsor that it intends to
      exercise such optional termination right.

     

    
      
        
        

      

      
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    (c) In
      connection with any optional termination, four Business Days prior to the final
      Distribution Date specified in the notice required pursuant to Section 10.01(f),
      the Securities Administrator shall, no later than 4:00 pm New York City time
      on
      such day, request in writing (in accordance with the applicable provision of
      the
      Swap Agreement and by phone from the Swap Provider the amount of the Estimated
      Swap Termination Payment (as defined in the Swap Agreement). The Swap Provider
      shall, no later than 2:00 pm on the following Business Day, notify in writing
      (which may be done in electronic format) the Securities Administrator of the
      amount of the Estimated Swap Termination Payment; the Securities Administrator
      shall promptly on the same day notify the Terminator of the amount of the
      Estimated Swap Termination Payment. 

     

    (d) Two
      Business Days prior to the final Distribution Date specified in the notice
      required pursuant to Section 10.01(f), (i) the Terminator shall, no
      later
      than 1:00 pm New
      York
      City time on such day, deposit funds in the Distribution Account in an amount
      equal to the sum of the Termination Price (other than the Swap Termination
      Payment) and the Estimated Swap Termination Payment, and (ii) if the Securities
      Administrator shall have determined that the aggregate Scheduled Principal
      Balance of all of the Mortgage Loans as of the related Determination Date is
      not
      more
      than 10% of the aggregate Principal Balance of the Mortgage Loans
      as of
      the Cut-off Date and that all other requirements of the optional termination
      have been met, including without limitation, the deposit required pursuant
      to
      the immediately preceding clause (i) as well as the requirements specified
      in
      Section 10.03, then the Securities Administrator shall, on the same Business
      Day, provide written notice to the Depositor, the Master Servicer, the
      Servicers, the Supplemental Interest Trust Trustee, the Trustee and the Swap
      Provider confirming (in accordance with the applicable provisions of the Swap
      Agreement) (a) its receipt of the Termination Price (other than the Swap
      Termination Payment) and the Estimated Swap Termination Payment and (b) that
      all
      other requirements of the optional termination have been met. Upon the
      Securities Administrator’s providing the notice described in the preceding
      sentence, the optional termination shall become irrevocable, the notice to
      Certificateholders of such optional termination provided pursuant to the Section
      10.01(f) shall become unrescindable, the Swap Provider shall determine the
      Swap
      Termination Payment in accordance with the Swap Agreement, and the Swap Provider
      shall provide to the Securities Administrator written notice of the amount
      of
      the Swap Termination Payment not later than one Business Day prior to the final
      Distribution Date specified in the notice required pursuant to Section 10.01(f).
      

     

    
      
        
        

      

      
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    (e) In
      connection with any optional termination, only an amount equal to the
      Termination Price less any Swap Termination Payment shall be made available
      for
      distribution to the Regular Certificates. Any Estimated Swap Termination Payment
      deposited into the Distribution Account by the Terminator shall be withdrawn
      by
      the Securities Administrator from the Distribution Account on the related final
      Distribution Date and distributed as follows: (i) to the Supplemental Interest
      Trust for payment to the Swap Provider in accordance with Section 5.07, an
      amount equal to the Swap Termination Payment calculated pursuant to the Swap
      Agreement, provided that in no event shall the amount distributed to the Swap
      Provider in respect of the Swap Termination Payment exceed the Estimated Swap
      Termination Payment, and (ii) to the Terminator an amount equal to the excess,
      if any, of the Estimated Swap Termination Payment over the Swap Termination
      Payment. The Swap Termination Payment shall not be part of any REMIC and shall
      not be paid into any account which is part of any REMIC. 

     

    (f) Notice
      of
      the liquidation of the Certificates shall be given promptly by the Securities
      Administrator by letter to the Certificateholders mailed (a) in the event such
      notice is given in connection with the purchase of the Mortgage Loans and each
      REO Property by the Master Servicer, not earlier than the 15th day and not
      later
      than the 25th day of the month next preceding the month of the final
      distribution on the Certificates or (b) otherwise during the month of such
      final
      distribution on or before the Determination Date in such month, in each case
      specifying (i) the Distribution Date upon which the Trust Fund will terminate
      and the final payment in respect of the REMIC I Regular Interests or the
      Certificates will be made upon presentation and surrender of the related
      Certificates at the office of the Securities Administrator therein designated,
      (ii) the amount of any such final payment, (iii) that no interest shall accrue
      in respect of the REMIC I Regular Interests or the Certificates from and after
      the Interest Accrual Period relating to the final Distribution Date therefor
      and
      (iv) that the Record Date otherwise applicable to such Distribution Date is
      not
      applicable, payments being made only upon presentation and surrender of the
      Certificates at the office of the Securities Administrator. In the event such
      notice is given in connection with the purchase of all of the Mortgage Loans
      and
      each REO Property remaining in REMIC I by the Terminator, the Terminator shall
      deliver to the Securities Administrator for deposit in the Distribution Account
      not later than the Business Day prior to the Distribution Date on which the
      final distribution on the Certificates an amount in immediately available funds
      equal to the above-described Termination Price. The Securities Administrator
      shall remit to the Servicers the Master Servicer, the Trustee and the applicable
      Custodian from such funds deposited in the Distribution Account (i) any amounts
      which the Servicers would be permitted to withdraw and retain from the
      Collection Accounts pursuant to Section 3.09 or pursuant to the Servicing
      Agreement as if such funds had been deposited therein (including all unpaid
      Servicing Fees, Master Servicing Fees and all outstanding P&I Advances and
      Servicing Advances) and (ii) any other amounts otherwise payable by the
      Securities Administrator to the Master Servicer, the Trustee, the applicable
      Custodian, the Swap Provider and the Servicers from amounts on deposit in the
      Distribution Account pursuant to the terms of this Agreement prior to making
      any
      final distributions pursuant to Section 10.01(d) below. Upon certification
      to
      the Trustee by the Securities Administrator of the making of such final deposit,
      the Trustee shall promptly release or cause to be released to the Terminator
      the
      Mortgage Files for the remaining Mortgage Loans, and Trustee shall execute
      all
      assignments, endorsements and other instruments delivered to it and necessary
      to
      effectuate such transfer.

     

    
      
        
        

      

      
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    (g) Upon
      presentation of the Certificates by the Certificateholders on the final
      Distribution Date, the Securities Administrator shall distribute to each
      Certificateholder so presenting and surrendering its Certificates the amount
      otherwise distributable on such Distribution Date in accordance with Section
      5.01 in respect of the Certificates so presented and surrendered. Any funds
      not
      distributed to any Holder or Holders of Certificates being retired on such
      Distribution Date because of the failure of such Holder or Holders to tender
      their Certificates shall, on such date, be set aside and held in trust and
      credited to the account of the appropriate non-tendering Holder or Holders.
      If
      any Certificates as to which notice has been given pursuant to this Section
      10.01 shall not have been surrendered for cancellation within six months after
      the time specified in such notice, the Securities Administrator shall mail
      a
      second notice to the remaining non-tendering Certificateholders to surrender
      their Certificates for cancellation in order to receive the final distribution
      with respect thereto. If within one year after the second notice all such
      Certificates shall not have been surrendered for cancellation, the Securities
      Administrator shall, directly or through an agent, mail a final notice to the
      remaining non-tendering Certificateholders concerning surrender of their
      Certificates. The costs and expenses of maintaining the funds in trust and
      of
      contacting such Certificateholders shall be paid out of the assets remaining
      in
      the trust funds. If within one (1) year after the final notice any such
      Certificates shall not have been surrendered for cancellation, the Securities
      Administrator shall pay to the Depositor all such amounts, and all rights of
      non-tendering Certificateholders in or to such amounts shall thereupon cease.
      No
      interest shall accrue or be payable to any Certificateholder on any amount
      held
      in trust by the Securities Administrator as a result of such Certificateholder’s
      failure to surrender its Certificate(s) on the final Distribution Date for
      final
      payment thereof in accordance with this Section 10.01. Any such amounts held
      in
      trust by the Securities Administrator shall be held uninvested in an Eligible
      Account.

     

    SECTION
      10.02. Additional
      Termination Requirements.

     

    (a) In
      the
      event that the Terminator purchases all the Mortgage Loans and each REO Property
      or the final payment on or other liquidation of the last Mortgage Loan or REO
      Property remaining in REMIC I pursuant to Section 10.01, the Trust Fund shall
      be
      terminated in accordance with the following additional
      requirements:

     

    (i) The
      Securities Administrator shall specify the first day in the 90-day liquidation
      period in a statement attached to each Trust REMIC’s final Tax Return pursuant
      to Treasury regulation Section 1.860F-1 and shall satisfy all requirements
      of a
      qualified liquidation under Section 860F of the Code and any regulations
      thereunder, as evidenced by an Opinion of Counsel obtained by and at the expense
      of the Terminator;

     

    (ii) During
      such 90-day liquidation period and, at or prior to the time of making of the
      final payment on the Certificates, the Trustee shall sell all of the assets
      of
      REMIC I to the Terminator for cash; and

     

    
      
        
        

      

      
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    (iii) At
      the
      time of the making of the final payment on the Certificates, the Securities
      Administrator shall distribute or credit, or cause to be distributed or
      credited, to the Holders of the Residual Certificates all cash on hand in the
      Trust Fund (other than cash retained to meet claims), and the Trust Fund shall
      terminate at that time.

     

    (b) At
      the
      expense of the Terminator (or, if the Trust Fund is being terminated as a result
      of the occurrence of the event described in clause (ii) of the first paragraph
      of Section 10.01, at the expense of the Trust Fund), the Terminator shall
      prepare or cause to be prepared the documentation required in connection with
      the adoption of a plan of liquidation of each Trust REMIC pursuant to this
      Section 10.02.

     

    (c) By
      their
      acceptance of Certificates, the Holders thereof hereby agree to authorize the
      Securities Administrator to specify the 90-day liquidation period for each
      Trust
      REMIC, which authorization shall be binding upon all successor
      Certificateholders.

     

    
      
        
        

      

      
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    ARTICLE
      XI

    REMIC
      PROVISIONS

     

    SECTION
      11.01. REMIC
      Administration.

     

    (a) The
      Securities Administrator shall elect to treat each Trust REMIC as a REMIC under
      the Code and, if necessary, under applicable state law. Each such election
      will
      be made by the Securities Administrator on Form 1066 or other appropriate
      federal tax or information return or any appropriate state return for the
      taxable year ending on the last day of the calendar year in which the
      Certificates are issued. For the purposes of the REMIC election in respect
      of
      REMIC I, the REMIC I Regular Interests shall be designated as the “regular
      interests” in REMIC I and the Class R-I Interest shall be designated as the
“residual interest” in REMIC I. For the purposes of the REMIC election in
      respect of REMIC II, the REMIC II Regular Interests shall be designated as
      the
“regular interests” in REMIC II and the Class R-II Interest shall be designated
      as the “residual interest” in REMIC II. For the purposes of the REMIC election
      in respect of REMIC III, the REMIC III Regular Interests shall be designated
      as
      the “regular interests” in REMIC III and the Class R-III Interest shall be
      designated as the “residual interest” in REMIC III. The Class A Certificates,
      the Mezzanine Certificates, the Class P Certificates, Class IO Interest, the
      Class CE-1 Certificates (exclusive of any right to receive payments from or
      obligation to make payments to the Reserve Fund or the Supplement Interest
      Trust) and the Class CE-2 Certificates shall be designated as the “regular
      interests” in REMIC IV and the Class R-IV Interest shall be designated as the
“residual interest” in REMIC IV. The Trustee shall not permit the creation of
      any “interests” in each Trust REMIC (within the meaning of Section 860G of the
      Code) other than the REMIC I Regular Interests, REMIC II Regular Interests,
      REMIC III Regular Interests, Class IO Interest and the interests represented
      by
      the Certificates.

     

    (b) The
      Closing Date is hereby designated as the “Startup Day” of each Trust REMIC
      within the meaning of Section 860G(a)(9) of the Code.

     

    (c) The
      Securities Administrator shall be reimbursed for any and all expenses relating
      to any tax audit of the Trust Fund (including, but not limited to, any
      professional fees or any administrative or judicial proceedings with respect
      to
      each Trust REMIC that involve the Internal Revenue Service or state tax
      authorities), including the expense of obtaining any tax related Opinion of
      Counsel except as specified herein. The Securities Administrator, as agent
      for
      each Trust REMIC’s tax matters person shall (i) act on behalf of the Trust Fund
      in relation to any tax matter or controversy involving any Trust REMIC and
      (ii)
      represent the Trust Fund in any administrative or judicial proceeding relating
      to an examination or audit by any governmental taxing authority with respect
      thereto. The holder of the largest Percentage Interest of each Class of Residual
      Certificates shall be designated, in the manner provided under Treasury
      regulations section 1.860F-4(d) and Treasury regulations section
      301.6231(a)(7)-1, as the tax matters person of the related REMIC created
      hereunder. By their acceptance thereof, the holder of the largest Percentage
      Interest of the Residual Certificates hereby agrees to irrevocably appoint
      the
      Securities Administrator or an Affiliate as its agent to perform all of the
      duties of the tax matters person for the Trust Fund.

     

    
      
        
        

      

      
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    (d) The
      Securities Administrator shall prepare and file and the Trustee shall sign
      all
      of the Tax Returns in respect of each REMIC created hereunder. The expenses
      of
      preparing and filing such returns shall be borne by the Securities Administrator
      without any right of reimbursement therefor.

     

    (e) The
      Securities Administrator shall perform on behalf of each Trust REMIC all
      reporting and other tax compliance duties that are the responsibility of such
      REMIC under the Code, the REMIC Provisions or other compliance guidance issued
      by the Internal Revenue Service or any state or local taxing authority. Among
      its other duties, as required by the Code, the REMIC Provisions or other such
      compliance guidance, the Securities Administrator shall provide (i) to any
      Transferor of a Residual Certificate such information as is necessary for the
      application of any tax relating to the transfer of a Residual Certificate to
      any
      Person who is not a Permitted Transferee upon receipt of additional reasonable
      compensation, (ii) to the Certificateholders such information or reports as
      are
      required by the Code or the REMIC Provisions including reports relating to
      interest, original issue discount and market discount or premium (using the
      Prepayment Assumption as required) and (iii) to the Internal Revenue Service
      the
      name, title, address and telephone number of the person who will serve as the
      representative of each Trust REMIC. The Depositor shall provide or cause to
      be
      provided to the Securities Administrator, within ten (10) days after the Closing
      Date, all information or data that the Securities Administrator reasonably
      determines to be relevant for tax purposes as to the valuations and issue prices
      of the Certificates, including, without limitation, the price, yield, prepayment
      assumption and projected cash flow of the Certificates.

     

    (f) To
      the
      extent in the control of the Trustee or the Securities Administrator, each
      such
      Person (i) shall take such action and shall cause each REMIC created hereunder
      to take such action as shall be necessary to create or maintain the status
      thereof as a REMIC under the REMIC Provisions, (ii) shall not take any action,
      cause the Trust Fund to take any action or fail to take (or fail to cause to
      be
      taken) any action that, under the REMIC Provisions, if taken or not taken,
      as
      the case may be, could (A) endanger the status of each Trust REMIC as a REMIC
      or
      (B) result in the imposition of a tax upon the Trust Fund (including but not
      limited to the tax on prohibited transactions as defined in Section 860F(a)(2)
      of the Code and the tax on contributions to a REMIC set forth in Section 860G(d)
      of the Code) (either such event, an “Adverse REMIC Event”) unless such action or
      inaction is permitted under this Agreement or the Trustee, the NIMS Insurer
      and
      the Securities Administrator have received an Opinion of Counsel, addressed
      to
      the them (at the expense of the party seeking to take such action but in no
      event at the expense of the Trustee or the Securities Administrator) to the
      effect that the contemplated action will not, with respect to any Trust REMIC,
      endanger such status or result in the imposition of such a tax, nor (iii) shall
      the Securities Administrator take or fail to take any action (whether or not
      authorized hereunder) as to which the Trustee has advised it in writing that
      it
      has received an Opinion of Counsel to the effect that an Adverse REMIC Event
      could occur with respect to such action; provided that the Securities
      Administrator may conclusively rely on such Opinion of Counsel and shall incur
      no liability for its action or failure to act in accordance with such Opinion
      of
      Counsel. In addition, prior to taking any action with respect to any Trust
      REMIC
      or the respective assets of each, or causing any Trust REMIC to take any action,
      which is not contemplated under the terms of this Agreement, the Securities
      Administrator will consult with the Trustee or its designee, in writing, with
      respect to whether such action could cause an Adverse REMIC Event to occur
      with
      respect to any Trust REMIC, and the Securities Administrator shall not take
      any
      such action or cause any Trust REMIC to take any such action as to which the
      Trustee has advised it in writing that an Adverse REMIC Event could occur.
      The
      Trustee may consult with counsel (and conclusively rely upon the advice of
      such
      counsel) to make such written advice, and the cost of same shall be borne by
      the
      party seeking to take the action not permitted by this Agreement, but in no
      event shall such cost be an expense of the Trustee.

     

    
      
        
        

      

      
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    (g) In
      the
      event that any tax is imposed on “prohibited transactions” of any REMIC created
      hereunder as defined in Section 860F(a)(2) of the Code, on the “net income from
      foreclosure property” of such REMIC as defined in Section 860G(c) of the Code,
      on any contributions to any such REMIC after the Startup Day therefor pursuant
      to Section 860G(d) of the Code, or any other tax is imposed by the Code or
      any
      applicable provisions of state or local tax laws, such tax shall be charged
      (i)
      to the Trustee pursuant to Section 11.03, if such tax arises out of or results
      from a breach by the Trustee of any of its obligations under this Article XI,
      (ii) to the Securities Administrator pursuant to Section 11.03, if such tax
      arises out of or results from a breach by the Securities Administrator of any
      of
      its obligations under this Article XI, (iii) to the Master Servicer pursuant
      to
      Section 11.03, if such tax arises out of or results from a breach by the Master
      Servicer of any of its obligations under Article IV or under this Article XI,
      (iv) to the related Servicer pursuant to Section 11.03, if such tax arises
      out
      of or results from a breach by such Servicer of any of its obligations under
      Article III or under this Article XI, or (v) in all other cases, against amounts
      on deposit in the Distribution Account and shall be paid by withdrawal
      therefrom.

     

    (h) The
      Securities Administrator shall, for federal income tax purposes, maintain books
      and records with respect to each Trust REMIC on a calendar year and on an
      accrual basis.

     

    (i) Following
      the Startup Day, neither the Securities Administrator nor the Trustee shall
      accept any contributions of assets to any Trust REMIC other than in connection
      with any Qualified Substitute Mortgage Loan delivered in accordance with Section
      2.03 unless it shall have received an Opinion of Counsel to the effect that
      the
      inclusion of such assets in the Trust Fund will not cause the related REMIC
      to
      fail to qualify as a REMIC at any time that any Certificates are outstanding
      or
      subject such REMIC to any tax under the REMIC Provisions or other applicable
      provisions of federal, state and local law or ordinances.

     

    (j) Neither
      the Trustee nor the Securities Administrator shall knowingly enter into any
      arrangement by which any Trust REMIC will receive a fee or other compensation
      for services nor permit either REMIC to receive any income from assets other
      than “qualified mortgages” as defined in Section 860G(a)(3) of the Code or
“permitted investments” as defined in Section 860G(a)(5) of the
      Code.

     

    (k) The
      Securities Administrator shall apply for an employer identification number
      with
      the Internal Revenue Service via a Form SS-4 or other comparable method for
      each
      REMIC. In connection with the foregoing, the Securities Administrator shall
      provide the name and address of the person who can be contacted to obtain
      information required to be reported to the holders of Regular Interests in
      each
      REMIC as required by IRS Form 8811.

     

    
      
        
        

      

      
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    SECTION
      11.02. Prohibited
      Transactions and Activities.

     

    None
      of
      the Depositor, the Servicers, the Securities Administrator, the Master Servicer
      or the Trustee shall sell, dispose of or substitute for any of the Mortgage
      Loans (except in connection with (i) the foreclosure of a Mortgage Loan,
      including but not limited to, the acquisition or sale of a Mortgaged Property
      acquired by deed in lieu of foreclosure, (ii) the bankruptcy of REMIC I, (iii)
      the termination of REMIC I pursuant to Article X of this Agreement, (iv) a
      substitution pursuant to Article II of this Agreement or (v) a purchase of
      Mortgage Loans pursuant to Article II of this Agreement), nor acquire any assets
      for any Trust REMIC (other than REO Property acquired in respect of a defaulted
      Mortgage Loan), nor sell or dispose of any investments in the related Collection
      Account or the Distribution Account for gain, nor accept any contributions
      to
      any Trust REMIC after the Closing Date (other than a Qualified Substitute
      Mortgage Loan delivered in accordance with Section 2.03), unless it has received
      an Opinion of Counsel, addressed to the Trustee, the Securities Administrator
      and the NIMS Insurer (at the expense of the party seeking to cause such sale,
      disposition, substitution, acquisition or contribution but in no event at the
      expense of the Trustee) that such sale, disposition, substitution, acquisition
      or contribution will not (a) affect adversely the status of any Trust REMIC
      as a
      REMIC or (b) cause any Trust REMIC to be subject to a tax on “prohibited
      transactions” or “contributions” pursuant to the REMIC Provisions.

     

    SECTION
      11.03. Indemnification.

     

    (a) The
      Trustee agrees to be liable for any taxes and costs incurred by the Trust Fund,
      the Depositor, the Master Servicer, the Securities Administrator or the
      Servicers including, without limitation, any reasonable attorneys fees imposed
      on or incurred by the Trust Fund, the Depositor, the Master Servicer, the
      Securities Administrator or the Servicer as a result of the Trustee’s failure to
      perform its covenants set forth in this Article XI in accordance with the
      standard of care of the Trustee set forth in this Agreement.

     

    (b) Each
      of
      Ocwen and GMAC agrees to indemnify the Trust Fund, the Depositor, the Master
      Servicer, the Securities Administrator and the Trustee for any taxes and costs
      including, without limitation, any reasonable attorneys’ fees imposed on or
      incurred by the Trust Fund, the Depositor, the Master Servicer, the Securities
      Administrator or the Trustee, as a result of the related Servicer’s failure to
      perform its covenants set forth in Article III in accordance with the standard
      of care of the related Servicer set forth in this Agreement.

     

    (c) The
      Master Servicer agrees to indemnify the Trust Fund, the Depositor, the Servicers
      and the Trustee for any taxes and costs including, without limitation, any
      reasonable attorneys’ fees imposed on or incurred by the Trust Fund, the
      Depositor, the Servicer or the Trustee, as a result of the Master Servicer’s
      failure to perform its covenants set forth in Article IV in accordance with
      the
      standard of care of the Master Servicer set forth in this
      Agreement.

     

    
      
        
        

      

      
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    (d) The
      Securities Administrator agrees to be liable for any taxes and costs incurred
      by
      the Trust Fund, the Depositor, the Servicers or the Trustee including, without
      limitation, any reasonable attorneys’ fees imposed on or incurred by the Trust
      Fund, the Depositor, the Servicer or the Trustee as a result of the Securities
      Administrator’s failure to perform its covenants set forth in this Article XI in
      accordance with the standard of care of the Securities Administrator set forth
      in this Agreement.

     

    
      
        
        

      

      
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    ARTICLE
      XII

    MISCELLANEOUS
      PROVISIONS

     

    SECTION
      12.01. Amendment.

     

    This
      Agreement may be amended from time to time by the Depositor, Ocwen, GMAC, the
      Master Servicer, the Securities Administrator, the NIMS Insurer and the Trustee
      but without the consent of any of the Certificateholders, (i) to cure any
      ambiguity or defect, (ii) to correct, modify or supplement any provisions herein
      (including to give effect to the expectations of Certificateholders), (iii)
      to
      ensure compliance with Regulation AB or (iv) to make any other provisions with
      respect to matters or questions arising under this Agreement which shall not
      be
      inconsistent with the provisions of this Agreement and that such action shall
      not, as evidenced by an Opinion of Counsel delivered to the Trustee and the
      NIMS
      Insurer, adversely affect in any material respect the interests of any
      Certificateholder; provided that any such amendment shall be deemed not to
      adversely affect in any material respect the interests of the Certificateholders
      and no such Opinion of Counsel shall be required if the Person requesting such
      amendment obtains a letter from each Rating Agency stating that such amendment
      would not result in the downgrading or withdrawal of the respective ratings
      then
      assigned to the Certificates. No amendment shall be deemed to adversely affect
      in any material respect the interests of any Certificateholder who shall have
      consented thereto, and no Opinion of Counsel shall be required to address the
      effect of any such amendment on any such consenting
      Certificateholder.

     

    This
      Agreement may also be amended from time to time by the Depositor, Ocwen, GMAC,
      the Master Servicer, the Securities Administrator, the NIMS Insurer and the
      Trustee with the consent of the Holders of Certificates entitled to at least
      66%
      of the Voting Rights for the purpose of adding any provisions to or changing
      in
      any manner or eliminating any of the provisions of this Agreement or of
      modifying in any manner the rights of the Holders of Certificates; provided,
      however, that no such amendment shall (i) reduce in any manner the amount of,
      or
      delay the timing of, payments received on Mortgage Loans which are required
      to
      be distributed on any Certificate without the consent of the Holder of such
      Certificate, (ii) adversely affect in any material respect the interests of
      the
      Holders of any Class of Certificates in a manner, other than as described in
      (i), without the consent of the Holders of Certificates of such Class evidencing
      at least 66% of the Voting Rights allocated to such Class, or (iii) modify
      the
      consents required by the immediately preceding clauses (i) and (ii) without
      the
      consent of the Holders of all Certificates then outstanding. Notwithstanding
      any
      other provision of this Agreement, for purposes of the giving or withholding
      of
      consents pursuant to this Section 12.01, Certificates registered in the name
      of
      the Depositor, Ocwen or GMAC or any Affiliate thereof shall be entitled to
      Voting Rights with respect to matters affecting such Certificates. Without
      limiting the generality of the foregoing, any amendment to this Agreement
      required in connection with the compliance with or the clarification of any
      reporting obligations described in Section 5.06 hereof shall not require the
      consent of any Certificateholder and without the need for any Opinion of Counsel
      or Rating Agency confirmation.

     

    Notwithstanding
      any contrary provision of this Agreement, the Trustee shall not consent to
      any
      amendment to this Agreement unless it shall have first received an Opinion
      of
      Counsel to the effect that such amendment is permitted hereunder, that all
      conditions precedent to the execution of such amendment by the Trustee have
      been
      satisfied, such amendment will not result in the imposition of any tax on any
      Trust REMIC pursuant to the REMIC Provisions or cause any Trust REMIC to fail
      to
      qualify as a REMIC at any time that any Certificates are outstanding.

     

    
      
        
        

      

      
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    Promptly
      after the execution of any such amendment the Trustee shall furnish a copy
      of
      such amendment to each Certificateholder.

     

    It
      shall
      not be necessary for the consent of Certificateholders under this Section 12.01
      to approve the particular form of any proposed amendment, but it shall be
      sufficient if such consent shall approve the substance thereof. The manner
      of
      obtaining such consents and of evidencing the authorization of the execution
      thereof by Certificateholders shall be subject to such reasonable regulations
      as
      the Trustee may prescribe.

     

    The
      cost
      of any Opinion of Counsel to be delivered pursuant to this Section 12.01 shall
      be borne by the Person seeking the related amendment, but in no event shall
      such
      Opinion of Counsel be an expense of the Trustee.

     

    The
      Trustee may, but shall not be obligated to enter into any amendment pursuant
      to
      this Section that affects its rights, duties and immunities under this Agreement
      or otherwise.

     

    Notwithstanding
      any of the other provisions of this Section 12.01, none of the parties to this
      Agreement shall enter into any amendment to this Agreement that could reasonably
      be expected to have a material adverse effect on the interests of the Swap
      Provider hereunder (excluding, for the avoidance of doubt, any amendment to
      the
      Pooling and Servicing Agreement that is entered into solely for the purpose
      of
      appointing a successor servicer, master servicer, securities administrator,
      trustee or other service provider) without the prior written consent of the
      Swap
      Provider, which consent shall not be unreasonably withheld, conditioned or
      delayed.

     

    SECTION
      12.02. Recordation
      of Agreement; Counterparts.

     

    To
      the
      extent permitted by applicable law, this Agreement is subject to recordation
      in
      all appropriate public offices for real property records in all the counties
      or
      other comparable jurisdictions in which any or all of the properties subject
      to
      the Mortgages are situated, and in any other appropriate public recording office
      or elsewhere, such recordation to be effected by the Depositor at the expense
      of
      the Certificateholders, but only upon direction of the Trustee accompanied
      by an
      Opinion of Counsel (which Opinion of Counsel shall not be at the expense of
      the
      Trustee) to the effect that such recordation materially and beneficially affects
      the interests of the Certificateholders.

     

    For
      the
      purpose of facilitating the recordation of this Agreement as herein provided
      and
      for other purposes, this Agreement may be executed simultaneously in any number
      of counterparts, each of which counterparts shall be deemed to be an original,
      and such counterparts shall constitute but one and the same
      instrument.

     

    
      
        
        

      

      
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    SECTION
      12.03. Limitation
      on Rights of Certificateholders.

     

    The
      death
      or incapacity of any Certificateholder shall not operate to terminate this
      Agreement or the Trust Fund, nor entitle such Certificateholder’s legal
      representatives or heirs to claim an accounting or to take any action or
      proceeding in any court for a partition or winding up of the Trust Fund, nor
      otherwise affect the rights, obligations and liabilities of the parties hereto
      or any of them.

     

    No
      Certificateholder shall have any right to vote (except as expressly provided
      for
      herein) or in any manner otherwise control the operation and management of
      the
      Trust Fund, or the obligations of the parties hereto, nor shall anything herein
      set forth, or contained in the terms of any of the Certificates, be construed
      so
      as to constitute the Certificateholders from time to time as partners or members
      of an association; nor shall any Certificateholder be under any liability to
      any
      third person by reason of any action taken by the parties to this Agreement
      pursuant to any provision hereof.

     

    No
      Certificateholder shall have any right by virtue of any provision of this
      Agreement to institute any suit, action or proceeding in equity or at law upon
      or under or with respect to this Agreement, unless such Holder previously shall
      have given to the Trustee a written notice of default and of the continuance
      thereof, as hereinbefore provided, and unless also the Holders of Certificates
      entitled to at least 25% of the Voting Rights shall have made written request
      upon the Trustee to institute such action, suit or proceeding in its own name
      as
      Trustee hereunder and shall have offered to the Trustee such reasonable
      indemnity as it may require against the costs, expenses and liabilities to
      be
      incurred therein or thereby, and the Trustee, for 15 days after its receipt
      of
      such notice, request and offer of indemnity, shall have neglected or refused
      to
      institute any such action, suit or proceeding. It is understood and intended,
      and expressly covenanted by each Certificateholder with every other
      Certificateholder. and the Trustee, that no one or more Holders of Certificates
      shall have any right in any manner whatsoever by virtue of any provision of
      this
      Agreement to affect, disturb or prejudice the rights of the Holders of any
      other
      of such Certificates, or to obtain or seek to obtain priority over or preference
      to any other such Holder, or to enforce any right under this Agreement, except
      in the manner herein provided and for the equal, ratable and common benefit
      of
      all Certificateholders. For the protection and enforcement of the provisions
      of
      this Section, each and every Certificateholder and the Trustee shall be entitled
      to such relief as can be given either at law or in equity.

     

    SECTION
      12.04. Governing
      Law.

     

    This
      Agreement shall be construed in accordance with the laws of the State of New
      York and the obligations, rights and remedies of the parties hereunder shall
      be
      determined in accordance with such laws without regard to conflicts of laws
      principles thereof other than Section 5-1401 of the New York General Obligations
      Law which shall govern.

     

    SECTION
      12.05. Notices.

     

    All
      directions, demands and notices hereunder shall be in writing and shall be
      deemed to have been duly given when received if sent by facsimile, receipt
      confirmed, if personally delivered at or mailed by first class mail, postage
      prepaid, or by express delivery service or delivered in any other manner
      specified herein, to (a) in the case of the Depositor, ACE Securities Corp.,
      AMACAR GROUP, 6525 Morrison Boulevard, Suite 318, Charlotte, North Carolina
      28211, Attention: Juliana Johnson (telecopy number: (704) 365-1362) with a
      copy
      to Deutsche Bank Securities, Inc. 60 Wall Street, New York, New York, Attention:
      Legal Department (telecopy number: (212) 797-4561), or such other address or
      telecopy number as may hereafter be furnished to the Servicers, the Master
      Servicer, the NIMS Insurer, the Securities Administrator and the Trustee in
      writing by the Depositor, (b) in the case of Ocwen, Ocwen Loan Servicing, LLC,
      1661 Worthington Road, Centrepark West, Suite 100, West Palm Beach, Florida
      33409, Attention: Secretary (telecopy number: (561) 682-8177, or such other
      address or telecopy number as may hereafter be furnished to the Trustee, the
      Master Servicer, the NIMS Insurer, the Securities Administrator and the
      Depositor in writing by Ocwen, (d) , GMAC Mortgage, LLC, 100 Witmer Road,
      Horsham, Pennsylvania 19044, Attention: ACE 2007-HE4, or such other address
      or
      telecopy number as may hereafter be furnished to the Trustee, the Master
      Servicer, the Securities Administrator and the Depositor in writing by GMAC
      (e)
      in the case of the Master Servicer and the Securities Administrator, P.O. Box
      98, Columbia, Maryland 21046 and for overnight delivery to 9062 Old Annapolis
      Road, Columbia, Maryland 21045, Attention: Ace Securities Corp., 2007-HE4
      (telecopy number: (410) 715-2380), or such other address or telecopy number
      as
      may hereafter be furnished to the Trustee, the Depositor, the NIMS Insurer
      and
      the Servicer in writing by the Master Servicer or the Securities Administrator
      and (f) in the case of the Trustee, at the Corporate Trust Office or such other
      address or telecopy number as the Trustee may hereafter be furnish to the
      Servicers, the Master Servicer, the Securities Administrator and the Depositor
      in writing by the Trustee. Any notice required or permitted to be given to
      a
      Certificateholder shall be given by first class mail, postage prepaid, at the
      address of such Holder as shown in the Certificate Register. Any notice so
      mailed within the time prescribed in this Agreement shall be conclusively
      presumed to have been duly given when mailed, whether or not the
      Certificateholder receives such notice. A copy of any notice required to be
      telecopied hereunder also shall be mailed to the appropriate party in the manner
      set forth above.

     

    
      
        
        

      

      
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    SECTION
      12.06. Severability
      of Provisions.

     

    If
      any
      one or more of the covenants, agreements, provisions or terms of this Agreement
      shall be for any reason whatsoever held invalid, then such covenants,
      agreements, provisions or terms shall be deemed severable from the remaining
      covenants, agreements, provisions or terms of this Agreement and shall in no
      way
      affect the validity or enforceability of the other provisions of this Agreement
      or of the Certificates or the rights of the Holders thereof.

     

    SECTION
      12.07. Notice
      to
      Rating Agencies and NIMS Insurer.

     

    The
      Trustee shall use its best efforts promptly to provide notice to the Rating
      Agencies and the NIMS Insurer with respect to each of the following of which
      a
      Responsible Officer has actual knowledge:

     

    1. Any
      material change or amendment to this Agreement;

     

    
      
        
        

      

      
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    2. The
      occurrence of any Servicer Event of Default or Master Servicer Event of Default
      that has not been cured or waived;

     

    3. The
      resignation or termination of a Servicer, the Master Servicer or the
      Trustee;

     

    4. The
      repurchase or substitution of Mortgage Loans pursuant to or as contemplated
      by
      Section 2.03;

     

    5. The
      final
      payment to the Holders of any Class of Certificates; and

     

    6. Any
      change in the location of the Distribution Account.

     

    In
      addition, the Securities Administrator shall promptly make available to each
      Rating Agency and the NIMS Insurer copies of each report to Certificateholders
      described in Section 5.02.

     

    The
      Servicer shall make available to each Rating Agency copies of the
      following:

     

    1. Each
      annual statement of compliance described in Section 3.17 of this Agreement;
      and

     

    2. Each
      assessment of compliance and attestation report described in
      Section 3.18.

     

    Any
      such
      notice pursuant to this Section 12.07 shall be in writing and shall be deemed
      to
      have been duly given if personally delivered at or mailed by first class mail,
      postage prepaid, or by express delivery service to Standard & Poor’s, a
      division of the McGraw-Hill Companies, Inc., 55 Water Street, New York, New
      York
      10041; and to Moody’s Investors Service, Inc., 99 Church Street, New York, New
      York 10007 or such other addresses as the Rating Agencies may designate in
      writing to the parties hereto.

     

    SECTION
      12.08. Article
      and Section References.

     

    All
      article and section references used in this Agreement, unless otherwise
      provided, are to articles and sections in this Agreement.

     

    SECTION
      12.09. Grant
      of
      Security Interest.

     

    It
      is the
      express intent of the parties hereto that the conveyance of the Mortgage Loans
      by the Depositor to the Trustee, on behalf of the Trust and for the benefit
      of
      the Certificateholders, be, and be construed as, a sale of the Mortgage Loans
      by
      the Depositor and not a pledge of the Mortgage Loans to secure a debt or other
      obligation of the Depositor. However, in the event that, notwithstanding the
      aforementioned intent of the parties, the Mortgage Loans are held to be property
      of the Depositor, then, (a) it is the express intent of the parties that such
      conveyance be deemed a pledge of the Mortgage Loans by the Depositor to the
      Trustee, on behalf of the Trust and for the benefit of the Certificateholders,
      to secure a debt or other obligation of the Depositor and (b)(1) this Agreement
      shall also be deemed to be a security agreement within the meaning of Articles
      8
      and 9 of the Uniform Commercial Code as in effect from time to time in the
      State
      of New York; (2) the conveyance provided for in Section 2.01 shall be deemed
      to
      be a grant by the Depositor to the Trustee, on behalf of the Trust and for
      the
      benefit of the Certificateholders, of a security interest in all of the
      Depositor’s right, title and interest in and to the Mortgage Loans and all
      amounts payable to the holders of the Mortgage Loans in accordance with the
      terms thereof and all proceeds of the conversion, voluntary or involuntary,
      of
      the foregoing into cash, instruments, securities or other property, including
      without limitation all amounts in the Capitalized Interest Account including
      investment earnings and all amounts, other than investment earnings, from time
      to time held or invested in the Collection Accounts, the Distribution Account
      and any Pre-Funding Account whether in the form of cash, instruments, securities
      or other property; (3) the obligations secured by such security agreement shall
      be deemed to be all of the Depositor’s obligations under this Agreement,
      including the obligation to provide to the Certificateholders the benefits
      of
      this Agreement relating to the Mortgage Loans and the Trust Fund; and (4)
      notifications to persons holding such property, and acknowledgments, receipts
      or
      confirmations from persons holding such property, shall be deemed notifications
      to, or acknowledgments, receipts or confirmations from, financial
      intermediaries, bailees or agents (as applicable) of the Trustee for the purpose
      of perfecting such security interest under applicable law. Accordingly, the
      Depositor hereby grants to the Trustee, on behalf of the Trust and for the
      benefit of the Certificateholders, a security interest in the Mortgage Loans
      and
      all other property described in clause (2) of the preceding sentence, for the
      purpose of securing to the Trustee the performance by the Depositor of the
      obligations described in clause (3) of the preceding sentence. Notwithstanding
      the foregoing, the parties hereto intend the conveyance pursuant to Section
      2.01
      to be a true, absolute and unconditional sale of the Mortgage Loans and assets
      constituting the Trust Fund by the Depositor to the Trustee, on behalf of the
      Trust and for the benefit of the Certificateholders.

     

    
      
        
        

      

      
        248

        
          

        

      

      
        
        

      

    

     

    SECTION
      12.10. Survival
      of Indemnification.

     

    Any
      and
      all indemnities to be provided by any party to this Agreement shall survive
      the
      termination and resignation of any party hereto and the termination of this
      Agreement.

     

    SECTION
      12.11. Intention
      of the Parties and Interpretation.

     

    Each
      of
      the parties acknowledges and agrees that the purpose of Sections 3.17, 3.18,
      3.20, 4.15, 4.16, 4.17, 4.18 and 5.06 of this Agreement is to facilitate
      compliance by the Sponsor, the Master Servicer, the Securities Administrator
      and
      the Depositor with the provisions of Regulation AB promulgated by the Commission
      under the Exchange Act (17 C.F.R. §§ 229.1100 - 229.1123), as such may be
      amended from time to time and subject to clarification and interpretive advice
      as may be issued by the staff of the Commission from time to time. Therefore,
      each of the parties agrees that (a) the obligations of the parties hereunder
      shall be interpreted in such a manner as to accomplish that purpose, (b) the
      parties’ obligations hereunder will be supplemented and modified as necessary to
      be consistent with any such amendments, interpretive advice or guidance,
      convention or consensus among active participants in the asset-backed securities
      markets, advice of counsel, or otherwise in respect of the requirements of
      Regulation AB and (c) the parties shall comply with requests made by the Master
      Servicer, Securities Administrator, Sponsor or the Depositor for delivery of
      additional or different information as the Master Servicer, Securities
      Administrator, Sponsor or the Depositor may determine in good faith is necessary
      to comply with the provisions of Regulation AB.

     

    
      
        
        

      

      
        249

        
          

        

      

      
        
        

      

    

     

    SECTION
      12.12. Indemnification.

     

    Each
      of
      the Depositor, Master Servicer, Securities Administrator, Servicers and any
      Servicing Function Participant engaged by such party, respectively, shall
      indemnify and hold harmless the Master Servicer, the Securities Administrator
      and the Depositor, respectively, and each of its directors, officers, employees,
      agents, and affiliates from and against any and all claims, losses, damages,
      penalties, fines, forfeitures, reasonable legal fees and related costs,
      judgments and other costs and expenses arising out of or based upon (a) any
      breach by such party of any if its obligations under hereunder, including
      particularly its obligations to provide any assessment of compliance,
      attestation report, annual statement of compliance or any information, data
      or
      materials required to be included in any 1934 Act report, (b) any material
      misstatement or omission in any information, data or materials provided by
      such
      party (or, in the case of the Securities Administrator or Master Servicer,
      any
      material misstatement or material omission in (i) any assessment of compliance,
      attestation report or annual statement of compliance delivered by it, or by
      any
      Servicing Function Participant engaged by it, pursuant to this Agreement, or
      (ii) any Additional Form 10-D Disclosure, Additional Form 10-K Disclosure or
      Form 8-K Disclosure concerning the Master Servicer or the Securities
      Administrator), or (c) the negligence, bad faith or willful misconduct of such
      indemnifying party in connection with its performance hereunder. If the
      indemnification provided for herein is unavailable or insufficient to hold
      harmless the Master Servicer, the Securities Administrator or the Depositor,
      as
      the case may be, then each such party agrees that it shall contribute to the
      amount paid or payable by the Master Servicer, the Securities Administrator
      or
      the Depositor, as applicable, as a result of any claims, losses, damages or
      liabilities incurred by such party in such proportion as is appropriate to
      reflect the relative fault of the indemnified party on the one hand and the
      indemnifying party on the other. This indemnification shall survive the
      termination of this Agreement or the termination of any party to this
      Agreement.

     

    SECTION
      12.13. Swap
      Provider and NIMS Insurer as Third Party Beneficiaries.

     

    The
      Swap
      Provider and the NIMS Insurer each shall be an express third-party beneficiary
      of this Agreement to the extent of its express rights to receive any payments
      under this Agreement or any other express rights of the Swap Provider or NIMS
      Insurer explicitly stated in this Agreement, and shall have the right to enforce
      such rights under this Agreement as if each were a party hereto.

     

    
      
        
        

      

      
        250

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, the Depositor, Ocwen, GMAC, the Master Servicer, the Securities
      Administrator and the Trustee have caused their names to be signed hereto by
      their respective officers thereunto duly authorized, in each case as of the
      day
      and year first above written.

     

    
      	
            	 	 	
              ACE
                SECURITIES CORP.,

            
	
            	 	 	
              as
                Depositor

            
	 	 	 	 
	 	 	 	 
	 	 	 	
              By:
                /s/
                Evelyn Echevarria

            
	
            	 	 	
              
                

              

              Name:
                Evelyn Echevarria

            
	
            	 	 	
              Title:
                Vice President

            

    

     

    
      	 	 	 	 
	
            	 	 	
              By:
                /s/
                Evelyn Echevarria

            
	
            	 	 	
              
                

              

              Name:
                Evelyn Echevarria

            
	
            	 	 	
              Title:
                Vice President

            

    

    

    
      	 	 	 	
              OCWEN
                LOAN SERVICING, LLC

            
	
            	 	 	
              as
                a Servicer

            
	 	 	 	 
	 	 	 	 
	 	 	 	
              By:
                /s/
                Scott W. Anderson

            
	
            	 	 	
              
                

              

              Name:
                Scott W. Anderson

            
	
            	 	 	
              Title:
                Authorized Representative

            

    

     

    
      	 	 	 	
              GMAC
                MORTGAGE, LLC

            
	
            	 	 	
              as
                a Servicer

            
	 	 	 	 
	 	 	 	 
	 	 	 	
              By:
                /s/
                Wesley B. Howard

            
	
            	 	 	
              
                

              

              Name:
                Wesley B. Howard

            
	
            	 	 	
              Title:
                Vice President

            

    

     

    
      	 	 	 	
              HSBC
                BANK USA, NATIONAL ASSOCIATION

            
	
            	 	 	
              not
                in its individual capacity but solely as Trustee

            
	 	 	 	 
	 	 	 	 
	 	 	 	
              By:
                /s/
                Fernando Acebedo

            
	
            	 	 	
              
                

              

              Name:
                Fernando Acebedo

            
	
            	 	 	
              Title:
                Vice President

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	 	 	 	
              WELLS
                FARGO BANK, NATIONAL ASSOCIATION

            
	
            	 	 	
              as
                Master Servicer and Securities Administrator

            
	 	 	 	 
	 	 	 	
              By:
                /s/ Stacey M. Taylor

            
	 	 	 	
              
                

              

              Name:
                Stacey M. Taylor

            
	
            	 	 	
              Title:
                Vice President

            
	
            	 	 	
            

    

    

    
      	 	 	 	
              Acknowledged
                and Agreed for purposes of Section 9.05:

            
	 	 	 	 
	 	 	 	 
	
            	 	 	
              DB
                STRUCTURED PRODUCTS, INC

            
	 	 	 	 
	 	 	 	 
	 	 	 	
              By:
                /s/
                Ernest Calabrese

            
	
            	 	 	
              
                

              

              Name:
                Ernest Calabrese

            
	
            	 	 	
              Title:
                Director

            

    

     

    
      	 	 	 	 
	
            	 	 	
              By:
                /s/Susan
                Valenti

            
	
            	 	 	
              
                

              

              Name:
                Susan Valenti

            
	
            	 	 	
              Title:
                Director

            

    

     

    
      	 	 	 	
              Acknowledged
                and Agreed for purposes of Sections 7.08, 7.09 and
                7.10:

            
	 	 	 	 
	 	 	 	 
	
            	 	 	
              CLAYTON
                FIXED INCOME SERVICES INC.

            
	 	 	 	 
	 	 	 	 
	 	 	 	
              By:
                /s/
                Kevin J. Kanouff

            
	
            	 	 	
              
                

              

              Name:
                Kevin J. Kanouff

            
	
            	 	 	
              Title:
                President and General Counsel

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      
        	STATE OF North Carolina 	)	 
	 	) ss.:	 
	COUNTY OF Mecklenburg	
                )

              	 

      

    

     

    On
      the
      26th day of April 2007, before me, a notary public in and for said State,
      personally appeared Evelyn Echevarria known to me to be an Officer of ACE
      Securities Corp., one of the entities that executed the within instrument,
      and
      also known to me to be the person who executed it on behalf of said corporation,
      and acknowledged to me that such corporation executed the within
      instrument.

     

    IN
      WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the
      day and year in this certificate first above written.

     

    
      	 	 	 	 
	
            	 	 	
              /s/
                Cynthia Reames

            
	
            	 	 	
              

              Notary
                Public

            
	 	 	 	 
	 	 	 	 
	[Notarial Seal]	 	 	My commission expires July 4,
              2011

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      
        	STATE OF North Carolina	)	 
	 	) ss.:	 
	COUNTY OF Mecklenburg	
                )

              	 

      

    

     

    On
      the
      26th
      day of
      April 2007, before me, a notary public in and for said State, personally
      appeared Doris J. Hearn known to me to be an Officer of ACE Securities Corp.,
      one of the entities that executed the within instrument, and also known to
      me to
      be the person who executed it on behalf of said corporation, and acknowledged
      to
      me that such corporation executed the within instrument.

     

    IN
      WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the
      day and year in this certificate first above written.

     

    
      	 	 	 	 
	
            	 	 	
              /s/
                Cynthia Reames

            
	
            	 	 	
              

              Notary
                Public

            
	 	 	 	 
	 	 	 	 
	[Notarial Seal]	 	 	My
              commission expires July 4, 2011

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
       

      
        
          	STATE OF Florida	)	 
	 	) ss.:	 
	COUNTY OF Palm Beach	
                  )

                	 

        

      

    

     

    On
      the
      30th day of April 2007, before me, a notary public in and for said State,
      personally appeared Scott Anderson known to me to be an Authorized
      Representative of Ocwen Loan Servicing, LLC, one of the entities that executed
      the within instrument, and also known to me to be the person who executed it
      on
      behalf of said entity, and acknowledged to me that such entity executed the
      within instrument.

     

    IN
      WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the
      day and year in this certificate first above written.

     

    
      	 	 	 	 
	
            	 	 	
              /s/
                K. S. Ferruggia

            
	
            	 	 	
              

              Notary
                Public

            
	 	 	 	 
	 	 	 	 
	[Notarial Seal]	 	 	My commission expires June 3,
              2009

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      
         

        
          
            	STATE OF Iowa	)	 
	 	) ss.:	 
	COUNTY OF Black Hawk	
                    )

                  	 

          

        

      

       

    

    On
      the
      30th day of April 2007, before me, a notary public in and for said State,
      personally appeared Wesley B. Howland known to me to be a Vice President of
      GMAC
      Mortgage, LLC, one of the entities that executed the within instrument, and
      also
      known to me to be the person who executed it on behalf of said entity, and
      acknowledged to me that such entity executed the within instrument.

     

    IN
      WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the
      day and year in this certificate first above written.

     

    
      	 	 	 	 
	
            	 	 	
              /s/
                Susan E. Brindle

            
	
            	 	 	
              

              Notary
                Public

            
	
            	 	 	
            
	[Notarial Seal]	 	 	My commission expires August 26,
              2008

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      
        
           

          
            
              	STATE OF Maryland	)	 
	 	) ss.:	 
	COUNTY OF Howard	
                      )

                    	 

            

          

        

         

      

    

    On
      the
      30th
      day of
      April 2007, before me, a notary public in and for said State, personally
      appeared Stacey M. Taylor known to me to be a Vice President of Wells Fargo
      Bank, National Association, one of the entities that executed the within
      instrument, and also known to me to be the person who executed it on behalf
      of
      said national banking association, and acknowledged to me that such national
      banking association executed the within instrument.

     

    IN
      WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the
      day and year in this certificate first above written.

     

    
      	 	 	 	 
	
            	 	 	
              /s/
                Jennifer Richardson

            
	
            	 	 	
              

              Notary
                Public

            
	
            	 	 	
            
	 	 	 	 
	[Notarial Seal]	 	 	My commission expires April 1,
              2010

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      
         

        
          
            	STATE OF New York	)	 
	 	) ss.:	 
	COUNTY OF New York	
                    )

                  	 

          

        

      

    

     

    On
      the
      30th
      day of
      April 2007, before me, a notary public in and for said State, personally
      appeared Fernando Acebedo known to me to be a Vice President of HSBC Bank USA,
      National Association, one of the entities that executed the within instrument,
      and also known to me to be the person who executed it on behalf of said national
      banking association, and acknowledged to me that such national banking
      association executed the within instrument.

     

    IN
      WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the
      day and year in this certificate first above written.

     

    
      	 	 	 	 
	
            	 	 	
              /s/
                Audrey H. Zabriskie

            
	
            	 	 	
              

              Notary
                Public

            
	
            	 	 	
            
	 	 	 	 
	[Notarial Seal]	 	 	My commission expires January 16,
              2011

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      A-1

     

    FORM
      OF
      CLASS A-[1][2A][2B][2C][2D] CERTIFICATE

     

    SOLELY
      FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A “REGULAR INTEREST”
IN A “REAL ESTATE MORTGAGE INVESTMENT CONDUIT,” AS THOSE TERMS ARE DEFINED,
      RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF 1986,
      AS
      AMENDED (THE “CODE”).

     

    UNLESS
      THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
      TRUST COMPANY TO THE DEPOSITOR OR ITS AGENT FOR REGISTRATION OF TRANSFER,
      EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF
      CEDE & CO. OR SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE
      OF THE DEPOSITORY TRUST COMPANY AND ANY PAYMENT IS MADE TO CEDE & CO., ANY
      TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
      IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
      HEREIN.

     

    PRIOR
      TO THE TERMINATION OF THE SUPPLEMENTAL INTEREST TRUST, ANY PERSON ACQUIRING
      THIS
      CERTIFICATE SHALL BE DEEMED TO HAVE MADE THE REPRESENTATIONS IN SECTION 6.02(c)
      OF THE AGREEMENT REFERRED TO HEREIN.

     

    
      
        
        

      

      
        A-1-1

        
          

        

      

      
        
        

      

    

     

     

    
      	
              Series
                2007-HE4, Class A-[1][2A][2B][2C][2D]

            	 	
              Aggregate
                Certificate Principal Balance of the Class A-[1][2A][2B][2C][2D]
                Certificates as of the Issue Date: $_____________

            
	 	 	 
	
              Pass-Through
                Rate: Variable

            	 	
              Denomination:
                $____________

            
	 	 	 
	
              Date
                of Pooling and Servicing Agreement and Cut-off Date: April 1,
                2007

            	 	
              Master
                Servicer: Wells Fargo Bank, N.A.

            
	 	 	 
	
              First
                Distribution Date: May 25, 2007

            	 	
              Trustee:
                HSBC Bank USA, National Association

            
	 	 	 
	
              No.
                __

            	 	
              Issue
                Date: April 30, 2007

            
	 	 	 
	 	 	
              CUSIP:
                ________________

            

    

    

    DISTRIBUTIONS
      IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF THIS CERTIFICATE MAY BE
      MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY, THE OUTSTANDING CERTIFICATE
      PRINCIPAL BALANCE HEREOF AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ABOVE
      AS
      THE DENOMINATION OF THIS CERTIFICATE.

     

    ACE
      SECURITIES CORP. HOME EQUITY LOAN TRUST, SERIES 2007-HE4

    ASSET
      BACKED PASS-THROUGH CERTIFICATE

     

    evidencing
      a beneficial ownership interest in a Trust Fund (the “Trust Fund”) consisting
      primarily of a pool of conventional one- to four-family, first and second lien,
      fixed-rate and adjustable-rate mortgage loans (the “Mortgage Loans”) formed and
      sold by

     

    ACE
      SECURITIES CORP.

     

    THIS
      CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN ACE SECURITIES
      CORP., THE SPONSOR, THE MASTER SERVICER, THE SECURITIES ADMINISTRATOR, THE
      SERVICERS, THE TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS
      CERTIFICATE NOR THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY
      OR
      INSTRUMENTALITY OF THE UNITED STATES.

     

    This
      certifies that ________________ is the registered owner of a Percentage Interest
      (obtained by dividing the denomination of this Certificate by the aggregate
      Certificate Principal Balance of the Class A-[1][2A][2B][2C][2D] Certificates
      as
      of the Issue Date) in that certain beneficial ownership interest evidenced
      by
      all of the Class A-[1][2A][2B][2C][2D] Certificates in REMIC III created
      pursuant to a Pooling and Servicing Agreement, dated as specified above (the
      “Agreement”), among ACE Securities Corp. as depositor (hereinafter called the
“Depositor”, which term includes any successor entity under the Agreement),
      Wells Fargo Bank, N.A. as master servicer (the “Master Servicer”) and securities
      administrator (the “Securities Administrator”), Ocwen Loan Servicing, LLC as a
      servicer (“Ocwen” or a “Servicer”), GMAC Mortgage, LLC as a servicer (“GMAC” or
      a “Servicer”) and HSBC Bank USA, National Association as trustee (the
“Trustee”), a summary of certain of the pertinent provisions of which is set
      forth hereafter. To the extent not defined herein, the capitalized terms used
      herein have the meanings assigned in the Agreement. This Certificate is issued
      under and is subject to the terms, provisions and conditions of the Agreement,
      to which Agreement the Holder of this Certificate by virtue of the acceptance
      hereof assents and by which such Holder is bound.

     

    
      
        
        

      

      
        A-1-2

        
          

        

      

      
        
        

      

    

     

    Pursuant
      to the terms of the Agreement, distributions will be made on the 25th
      day of
      each month or, if such 25th
      day is
      not a Business Day, the Business Day immediately following such 25th
      day (a
“Distribution Date”), commencing on the First Distribution Date specified above,
      to the Person in whose name this Certificate is registered on the Business
      Day
      immediately preceding such Distribution Date (the “Record Date”), in an amount
      equal to the product of the Percentage Interest evidenced by this Certificate
      and the amount required to be distributed to the Holders of Class
      A-[1][2A][2B][2C][2D] Certificates on such Distribution Date pursuant to the
      Agreement.

     

    All
      distributions to the Holder of this Certificate under the Agreement will be
      made
      or caused to be made by the Securities Administrator by wire transfer in
      immediately available funds to the account of the Person entitled thereto if
      such Person shall have so notified the Securities Administrator in writing
      at
      least five (5) Business Days prior to the Record Date immediately prior to
      such
      Distribution Date and is the registered owner of Class A-[1][2A][2B][2C][2D]
      Certificates the aggregate initial Certificate Principal Balance of which is
      in
      excess of the lesser of (i) $5,000,000 or (ii) two-thirds of the aggregate
      initial Certificate Principal Balance of the Class A-[1][2A][2B][2C][2D]
      Certificates, or otherwise by check mailed by first class mail to the address
      of
      the Person entitled thereto, as such name and address shall appear on the
      Certificate Register. Notwithstanding the above, the final distribution on
      this
      Certificate will be made after due notice by the Securities Administrator of
      the
      pendency of such distribution and only upon presentation and surrender of this
      Certificate at the office or agency appointed by the Securities Administrator
      for that purpose as provided in the Agreement.

     

    The
      Pass-Through Rate applicable to the calculation of interest payable with respect
      to this Certificate on any Distribution Date shall be a rate per annum equal
      to
      the lesser of (i) One-Month LIBOR plus [_____]%, in the case of each
      Distribution Date through and including the Distribution Date on which the
      aggregate principal balance of the Mortgage Loans (and properties acquired
      in
      respect thereof) remaining in the Trust Fund as of the last day of the related
      Due Period has been reduced to less than or equal to 10% of the sum of (i)
      the
      aggregate principal balance of the Mortgage Loans as of the Cut-off Date and
      (ii) the Original Pre-Funded Amount, or One-Month LIBOR plus [_____]%, in the
      case of any Distribution Date thereafter and (ii) the applicable Net WAC
      Pass-Through Rate for such Distribution Date.

     

    This
      Certificate is one of a duly authorized issue of Certificates designated as
      Asset Backed Pass-Through Certificates of the Series specified on the face
      hereof (herein called the “Certificates”) and representing a Percentage Interest
      in the Class of Certificates specified on the face hereof equal to the
      denomination specified on the face hereof divided by the aggregate Certificate
      Principal Balance of the Class of Certificates specified on the face
      hereof.

     

    The
      Certificates are limited in right of payment to certain collections and
      recoveries in respect of the Mortgage Loans and payments received pursuant
      to
      the Swap Agreement and the [Group I][Group II] Cap Contracts as applicable,
      all
      as more specifically set forth herein and in the Agreement. As provided in
      the
      Agreement, withdrawals from the Collection Account and the Distribution Account
      may be made from time to time for purposes other than distributions to
      Certificateholders, such purposes including reimbursement of advances made,
      or
      certain expenses incurred, with respect to the Mortgage Loans. 

     

    
      
        
        

      

      
        A-1-3

        
          

        

      

      
        
        

      

    

     

    The
      Agreement permits, with certain exceptions therein provided, the amendment
      thereof and the modification of the rights and obligations of the Depositor,
      the
      Master Servicer, the Trustee, the Securities Administrator, each Servicer party
      thereto and the rights of the Certificateholders under the Agreement at any
      time
      by the Depositor, the Master Servicer, the Trustee, the Securities Administrator
      and each Servicer party thereto with the consent of the Swap Provider (with
      respect to matters affecting the Swap Agreement) and the Holders of Certificates
      entitled to at least 66% of the Voting Rights. Any such consent by the Holder
      of
      this Certificate shall be conclusive and binding on such Holder and upon all
      future Holders of this Certificate and of any Certificate issued upon the
      transfer hereof or in exchange herefor or in lieu hereof whether or not notation
      of such consent is made upon this Certificate. The Agreement also permits the
      amendment thereof, in certain limited circumstances, without the consent of
      the
      Holders of any of the Certificates.

     

    As
      provided in the Agreement and subject to certain limitations therein set forth,
      the transfer of this Certificate is registrable in the Certificate Register
      upon
      surrender of this Certificate for registration of transfer at the offices or
      agencies appointed by the Securities Administrator as provided in the Agreement,
      duly endorsed by, or accompanied by an assignment in the form below or other
      written instrument of transfer in form satisfactory to the Securities
      Administrator duly executed by the Holder hereof or such Holder’s attorney duly
      authorized in writing, and thereupon one or more new Certificates of the same
      Class in authorized denominations evidencing the same aggregate Percentage
      Interest will be issued to the designated transferee or
      transferees.

     

    The
      Certificates are issuable in fully registered form only without coupons in
      Classes and denominations representing Percentage Interests specified in the
      Agreement. As provided in the Agreement and subject to certain limitations
      therein set forth, the Certificates are exchangeable for new Certificates of
      the
      same Class in authorized denominations evidencing the same aggregate Percentage
      Interest, as requested by the Holder surrendering the same.

     

    No
      service charge will be made for any such registration of transfer or exchange
      of
      Certificates, but the Securities Administrator may require payment of a sum
      sufficient to cover any tax or other governmental charge that may be imposed
      in
      connection with any transfer or exchange of Certificates.

     

    The
      Depositor, the Master Servicer, the Trustee, the Securities Administrator,
      Ocwen, GMAC, Countrywide Home Loans Sercvicing LP (“Countrywide” or a
“Servicer”; together with Ocwen and GMAC, the “Servicers”) and any agent of the
      Depositor, the Master Servicer, the Trustee, the Securities Administrator or
      a
      Servicer may treat the Person in whose name this Certificate is registered
      as
      the owner hereof for all purposes, and none of the Depositor, the Master
      Servicer, the Trustee, the Securities Administrator, the Servicers nor any
      such
      agent shall be affected by notice to the contrary.

     

    
      
        
        

      

      
        A-1-4

        
          

        

      

      
        
        

      

    

     

    The
      obligations created by the Agreement and the Trust Fund created thereby shall
      terminate upon payment to the Certificateholders of all amounts held by the
      Securities Administrator and required to be paid to them pursuant to the
      Agreement following the earlier of (i) the final payment or other liquidation
      (or any advance with respect thereto) of the last Mortgage Loan remaining in
      REMIC I and (ii) the purchase by the party designated in the Agreement at a
      price determined as provided in the Agreement from REMIC I of all the Mortgage
      Loans and all property acquired in respect of such Mortgage Loans. The Agreement
      permits, but does not require, the party designated in the Agreement to purchase
      from REMIC I all the Mortgage Loans and all property acquired in respect of
      any
      Mortgage Loan at a price determined as provided in the Agreement. The exercise
      of such right will effect early retirement of the Certificates; however, such
      right to purchase is subject to the aggregate Scheduled Principal Balance of
      the
      Mortgage Loans (and properties acquired in respect thereof) at the time of
      purchase being less than or equal to 10% of the sum of (i) the aggregate
      principal balance of the Mortgage Loans as of the Cut-off Date and (ii) the
      Original Pre-Funded Amount.

     

    The
      recitals contained herein shall be taken as statements of the Depositor and
      neither the Trustee nor the Securities Administrator assumes any responsibility
      for their correctness.

     

    Unless
      the certificate of authentication hereon has been executed by the Securities
      Administrator, by manual signature, this Certificate shall not be entitled
      to
      any benefit under the Agreement or be valid for any purpose.

     

    
      
        
        

      

      
        A-1-5

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the Securities Administrator has caused this Certificate to
      be
      duly executed.

    
      	 	 	 
	Dated:	 	 
	 	 	 
	 	
              WELLS
                FARGO BANK, N.A.

              as
                Securities Administrator

            
	 
 	 
 	 
 
	
            	By:  	
            
	 	
              

              Authorized
                Officer

            

    

     

    CERTIFICATE
      OF AUTHENTICATION

     

    This
      is
      one of the Class A-[1][2A][2B][2C][2D] Certificates referred to in the
      within-mentioned Agreement.

    
      	 	 	 
	 	
              WELLS
                FARGO BANK, N.A.

              as
                Securities Administrator

            
	 
 	 
 	 
 
	
            	By:  	
            
	 	
              

              Authorized
                Signatory

            

    

     

     

    
      
        
        

      

      
        A-1-6

        
          

        

      

      
        
        

      

    

     

    ABBREVIATIONS

     

    The
      following abbreviations, when used in the inscription on the face of this
      instrument, shall be construed as though they were written out in full according
      to applicable laws or regulations:

     

    
      	
              TEN
                COM -

            	
              as
                tenants in common

            	
              UNIF
                GIFT MIN ACT -

            	
                   Custodian      

              (Cust)
                (Minor)

              under
                Uniform Gifts 

              to
                Minors Act

            
	 	 	 	 
	
              TEN
                ENT -

            	
              as
                tenants by the entireties

            	 	
              ________________

              (State)

            
	 	 	 	 
	
              JT
                TEN -

            	
              as
                joint tenants with right 

              if
                survivorship and not as 

              tenants
                in common

            	 	 
	 	 	 	 
	
              Additional
                abbreviations may also be used though not in the above
                list.

            

    

    

    ASSIGNMENT

     

    
      	
              FOR
                VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s)
                

            
	
              unto

            	________________________________________________________________________________________________________________
	__________________________________________________________________________________________________________________________
	__________________________________________________________________________________________________________________________

    

    (Please
      print or typewrite name, address including postal zip code, and Taxpayer
      Identification Number of assignee)

     

    a
      Percentage Interest equal to ____%
      evidenced by the within Asset Backed Pass-Through Certificate and hereby
      authorize(s) the registration of transfer of such interest to assignee on the
      Certificate Register of the Trust Fund.

     

    I
      (we)
      further direct the Securities Administrator to issue a new Certificate of a
      like
      Percentage Interest and Class to the above named assignee and deliver such
      Certificate to the following address: _____________________________

    
      	___________________________________________________________________________________________________________________________________________

    

    

    
      	 	 	 
	
              Dated:

            	
            	
            
	 	
              

              Signature
                by or on behalf of assignor

            

    

    
      

      
        	 	 	 
	
              	
              	
              
	 	
                

                Signature
                  Guaranteed

              

      

       

    

     

    
      
        
        

      

      
        A-1-7

        
          

        

      

      
        
        

      

    

    DISTRIBUTION
      INSTRUCTIONS

     

    The
      assignee should include the following for purposes of distribution:

     

    
      Distributions
        shall be made, by wire transfer or otherwise, in immediately available funds
        to
        ____________________________________

      ________________________________________________________________________________________________________________

      
        for
          the
          account of
          __________________________________________________________________________________________________

        
          account
            number
            __________________________________________________________________________________or,
            if
            mailed by check, to
_______________________________________________________________________________________________________________

          
            Applicable
              statements should be mailed to
              _____________________________________________________________________________

          

          _______________________________________________________________________________________________________________

          
             

            This
              information is provided by
              _________________________________________________________________________________________

            
              assignee
                named above, or
                ____________________________________________________________________________________________________

              
                its
                  agent.

              

            

          

        

      

    

     

    
      
        
        

      

      
        A-1-8

        
          

        

      

      
        
        

      

    

    EXHIBIT
      A-2

     

    FORM
      OF
      CLASS M-[1][2][3][4][5][6][7][8][9] CERTIFICATE

     

    SOLELY
      FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A “REGULAR INTEREST”
IN A “REAL ESTATE MORTGAGE INVESTMENT CONDUIT,” AS THOSE TERMS ARE DEFINED,
      RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF 1986,
      AS
      AMENDED (THE “CODE”).

     

    UNLESS
      THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
      TRUST COMPANY TO THE DEPOSITOR OR ITS AGENT FOR REGISTRATION OF TRANSFER,
      EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF
      CEDE & CO. OR SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE
      OF THE DEPOSITORY TRUST COMPANY AND ANY PAYMENT IS MADE TO CEDE & CO., ANY
      TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
      IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
      HEREIN.

     

    THIS
      CERTIFICATE IS SUBORDINATE TO THE CLASS A CERTIFICATES [[,/AND] CLASS M-1
      CERTIFICATES [,/AND] CLASS M-2 CERTIFICATES[,/AND] CLASS M-3 CERTIFICATES
      [,/AND] CLASS M-4 CERTIFICATES [,/AND] CLASS M-5 CERTIFICATES [,/AND] CLASS
      M-6
      CERTIFICATES [,/AND] CLASS M-7 CERTIFICATES [AND] CLASS M-8 CERTIFICATES] TO
      THE
      EXTENT DESCRIBED IN THE AGREEMENT REFERRED TO HEREIN.

     

    ANY
      TRANSFEREE OF THIS CERTIFICATE SHALL BE DEEMED TO MAKE THE REPRESENTATIONS
      SET
      FORTH IN SECTION 6.02(c) OF THE AGREEMENT REFERRED TO
      HEREIN.

     

    THE
      CERTIFICATE PRINCIPAL BALANCE OF THIS CERTIFICATE WILL BE DECREASED BY THE
      PRINCIPAL PAYMENTS HEREON AND REALIZED LOSSES ALLOCABLE HERETO AS DESCRIBED
      IN
      THE AGREEMENT REFERRED TO HEREIN. ACCORDINGLY, FOLLOWING THE INITIAL ISSUANCE
      OF
      THE CERTIFICATES, THE CERTIFICATE PRINCIPAL BALANCE OF THIS CERTIFICATE WILL
      BE
      DIFFERENT FROM THE DENOMINATION SHOWN BELOW. ANYONE ACQUIRING THIS CERTIFICATE
      MAY ASCERTAIN ITS CERTIFICATE PRINCIPAL BALANCE BY INQUIRY OF THE SECURITIES
      ADMINISTRATOR NAMED HEREIN.

     

    
      
        
        

      

      
        A-2-1

        
          

        

      

      
        
        

      

    

    

    
      	
              Series
                2007-HE4, Class M-[1][2][3][4][5][6][7][8][9]

            	 	
              Aggregate
                Certificate Principal Balance of the Class M-[1][2][3][4][5][6][7][8][9]
                Certificates as of the Issue Date: $______________

            
	 	 	 
	
              Pass-Through
                Rate: Variable

            	 	
              Denomination:
                $______________

            
	 	 	 
	
              Date
                of Pooling and Servicing Agreement 

              and
                Cut-off Date: April 1, 2007

            	 	
              Master
                Servicer: Wells Fargo Bank, N.A.

            
	 	 	 
	
              First
                Distribution Date: May 25, 2007

            	 	
              Trustee:
                HSBC Bank USA, National Association

            
	 	 	 
	
              No.___

            	 	
              Issue
                Date: April 30, 2007

            
	 	 	 
	 	 	
              CUSIP:_________________

            

    

    

    ACE
      SECURITIES CORP. HOME EQUITY LOAN TRUST, SERIES 2007-HE4

    ASSET
      BACKED PASS-THROUGH CERTIFICATE

     

    evidencing
      a beneficial ownership interest in a Trust Fund (the “Trust Fund”) consisting
      primarily of a pool of conventional one- to four-family, first and second lien,
      fixed-rate and adjustable-rate mortgage loans (the “Mortgage Loans”) formed and
      sold by

     

    ACE
      SECURITIES CORP.

     

    THIS
      CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN ACE SECURITIES
      CORP., THE SPONSOR, THE MASTER SERVICER, THE SECURITIES ADMINISTRATOR, THE
      SERVICERS, THE TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS
      CERTIFICATE NOR THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY
      OR
      INSTRUMENTALITY OF THE UNITED STATES.

     

    This
      certifies that _____________________ is the registered owner of a Percentage
      Interest (obtained by dividing the denomination of this Certificate by the
      aggregate Certificate Principal Balance of the Class
      M-[1][2][3][4][5][6][7][8][9] Certificates as of the Issue Date) in that certain
      beneficial ownership interest evidenced by all of the Class
      M-[1][2][3][4][5][6][7][8][9] Certificates in REMIC III created pursuant to
      a
      Pooling and Servicing Agreement, dated as specified above (the “Agreement”),
      among ACE Securities Corp. as depositor (hereinafter called the “Depositor”,
      which term includes any successor entity under the Agreement), Wells Fargo
      Bank,
      N.A. as master servicer (the “Master Servicer”) and securities administrator
      (the “Securities Administrator”), Ocwen Loan Servicing, LLC as a servicer
      (“Ocwen” or a “Servicer”), GMAC Mortgage, LLC as a servicer (“GMAC” or a
“Servicer”) and HSBC Bank USA, National Association as trustee (the “Trustee”),
      a summary of certain of the pertinent provisions of which is set forth
      hereafter. To the extent not defined herein, the capitalized terms used herein
      have the meanings assigned in the Agreement. This Certificate is issued under
      and is subject to the terms, provisions and conditions of the Agreement, to
      which Agreement the Holder of this Certificate by virtue of the acceptance
      hereof assents and by which such Holder is bound.

     

    
      
        
        

      

      
        A-2-2

        
          

        

      

      
        
        

      

    

     

    Pursuant
      to the terms of the Agreement, distributions will be made on the 25th
      day of
      each month or, if such 25th
      day is
      not a Business Day, the Business Day immediately following such 25th
      day (a
“Distribution Date”), commencing on the First Distribution Date specified above,
      to the Person in whose name this Certificate is registered on the Business
      Day
      immediately preceding such Distribution Date (the “Record Date”), in an amount
      equal to the product of the Percentage Interest evidenced by this Certificate
      and the amount required to be distributed to the Holders of Class
      M-[1][2][3][4][5][6][7][8][9] Certificates on such Distribution Date pursuant
      to
      the Agreement.

     

    All
      distributions to the Holder of this Certificate under the Agreement will be
      made
      or caused to be made by the Securities Administrator by wire transfer in
      immediately available funds to the account of the Person entitled thereto if
      such Person shall have so notified the Securities Administrator in writing
      at
      least five (5) Business Days prior to the Record Date immediately prior to
      such
      Distribution Date and is the registered owner of Class
      M-[1][2][3][4][5][6][7][8][9] Certificates the aggregate initial Certificate
      Principal Balance of which is in excess of the lesser of (i) $5,000,000 or
      (ii)
      two-thirds of the aggregate initial Certificate Principal Balance of the Class
      M-[1][2][3][4][5][6][7][8][9] Certificates, or otherwise by check mailed by
      first class mail to the address of the Person entitled thereto, as such name
      and
      address shall appear on the Certificate Register. Notwithstanding the above,
      the
      final distribution on this Certificate will be made after due notice by the
      Securities Administrator of the pendency of such distribution and only upon
      presentation and surrender of this Certificate at the office or agency appointed
      by the Securities Administrator for that purpose as provided in the
      Agreement.

     

    The
      Pass-Through Rate applicable to the calculation of interest payable with respect
      to this Certificate on any Distribution Date shall equal a rate per annum equal
      to the lesser of (i) One-Month LIBOR plus [____]%, in the case of each
      Distribution Date through and including the Distribution Date on which the
      aggregate principal balance of the Mortgage Loans (and properties acquired
      in
      respect thereof) remaining in the Trust Fund as of the last day of the related
      Due Period has been reduced to less than or equal to 10% of the sum of (i)
      the
      aggregate principal balance of the Mortgage Loans as of the Cut-off Date and
      (ii) the Original Pre-Funded Amount, or One-Month LIBOR plus [____]%, in the
      case of any Distribution Date thereafter and (ii) the applicable Net WAC
      Pass-Through Rate for such Distribution Date.

     

    This
      Certificate is one of a duly authorized issue of Certificates designated as
      Asset Backed Pass-Through Certificates of the Series specified on the face
      hereof (herein called the “Certificates”) and representing a Percentage Interest
      in the Class of Certificates specified on the face hereof equal to the
      denomination specified on the face hereof divided by the aggregate Certificate
      Principal Balance of the Class of Certificates specified on the face
      hereof.

     

    The
      Certificates are limited in right of payment to certain collections and
      recoveries in respect of the Mortgage Loans and payments received pursuant
      to
      the Swap Agreement and the Cap Contracts, all as more specifically set forth
      herein and in the Agreement. As provided in the Agreement, withdrawals from
      the
      Collection Account and the Distribution Account may be made from time to time
      for purposes other than distributions to Certificateholders, such purposes
      including reimbursement of advances made, or certain expenses incurred, with
      respect to the Mortgage Loans.

     

    
      
        
        

      

      
        A-2-3

        
          

        

      

      
        
        

      

    

     

    The
      Agreement permits, with certain exceptions therein provided, the amendment
      thereof and the modification of the rights and obligations of the Depositor,
      the
      Master Servicer, the Trustee, the Securities Administrator, each Servicer party
      thereto and the rights of the Certificateholders under the Agreement at any
      time
      by the Depositor, the Master Servicer, the Trustee, the Securities
      Administrator, and each Servicer party thereto with the consent of the Swap
      Provider (with respect to matters affecting the Swap Agreement) and the Holders
      of Certificates entitled to at least 66% of the Voting Rights. Any such consent
      by the Holder of this Certificate shall be conclusive and binding on such Holder
      and upon all future Holders of this Certificate and of any Certificate issued
      upon the transfer hereof or in exchange herefor or in lieu hereof whether or
      not
      notation of such consent is made upon this Certificate. The Agreement also
      permits the amendment thereof, in certain limited circumstances, without the
      consent of the Holders of any of the Certificates.

     

    As
      provided in the Agreement and subject to certain limitations therein set forth,
      the transfer of this Certificate is registrable in the Certificate Register
      upon
      surrender of this Certificate for registration of transfer at the offices or
      agencies appointed by the Securities Administrator as provided in the Agreement,
      duly endorsed by, or accompanied by an assignment in the form below or other
      written instrument of transfer in form satisfactory to the Securities
      Administrator duly executed by the Holder hereof or such Holder’s attorney duly
      authorized in writing, and thereupon one or more new Certificates of the same
      Class in authorized denominations evidencing the same aggregate Percentage
      Interest will be issued to the designated transferee or
      transferees.

     

    The
      Certificates are issuable in fully registered form only without coupons in
      Classes and denominations representing Percentage Interests specified in the
      Agreement. As provided in the Agreement and subject to certain limitations
      therein set forth, the Certificates are exchangeable for new Certificates of
      the
      same Class in authorized denominations evidencing the same aggregate Percentage
      Interest, as requested by the Holder surrendering the same.

     

    Any
      transferee of this Certificate shall be deemed to make the representations
      set
      forth in Section 6.02(c) of the Agreement.

     

    No
      service charge will be made for any such registration of transfer or exchange
      of
      Certificates, but the Securities Administrator may require payment of a sum
      sufficient to cover any tax or other governmental charge that may be imposed
      in
      connection with any transfer or exchange of Certificates.

     

    The
      Depositor, the Master Servicer, the Trustee, the Securities Administrator,
      Ocwen, GMAC, Countrywide Home Loans Sercvicing LP (“Countrywide” or a
“Servicer”; together with Ocwen and GMAC, the “Servicers”) and any agent of the
      Depositor, the Master Servicer, the Trustee, the Securities Administrator or
      a
      Servicer may treat the Person in whose name this Certificate is registered
      as
      the owner hereof for all purposes, and none of the Depositor, the Master
      Servicer, the Trustee, the Securities Administrator, the Servicers nor any
      such
      agent shall be affected by notice to the contrary.

     

    
      
        
        

      

      
        A-2-4

        
          

        

      

      
        
        

      

    

     

    The
      obligations created by the Agreement and the Trust Fund created thereby shall
      terminate upon payment to the Certificateholders of all amounts held by the
      Securities Administrator and required to be paid to them pursuant to the
      Agreement following the earlier of (i) the final payment or other liquidation
      (or any advance with respect thereto) of the last Mortgage Loan remaining in
      REMIC I and (ii) the purchase by the party designated in the Agreement at a
      price determined as provided in the Agreement from REMIC I of all the Mortgage
      Loans and all property acquired in respect of such Mortgage Loans. The Agreement
      permits, but does not require, the party designated in the Agreement to purchase
      from REMIC I all the Mortgage Loans and all property acquired in respect of
      any
      Mortgage Loan at a price determined as provided in the Agreement. The exercise
      of such right will effect early retirement of the Certificates; however, such
      right to purchase is subject to the aggregate Scheduled Principal Balance of
      the
      Mortgage Loans (and properties acquired in respect thereof) at the time of
      purchase being less than or equal to 10% of the sum of (i) the aggregate
      principal balance of the Mortgage Loans as of the Cut-off Date and (ii) the
      Original Pre-Funded Amount.

     

    The
      recitals contained herein shall be taken as statements of the Depositor and
      neither the Trustee nor the Securities Administrator assume any responsibility
      for their correctness.

     

    Unless
      the certificate of authentication hereon has been executed by the Securities
      Administrator by manual signature, this Certificate shall not be entitled to
      any
      benefit under the Agreement or be valid for any purpose.

     

    
      
        
        

      

      
        A-2-5

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the Securities Administrator has caused this Certificate to
      be
      duly executed.

    
      	 	 	 
	Dated:	 
	 	 
	 	
              WELLS
                FARGO BANK, N.A.

              as
                Securities Administrator

            
	 
 	 
 	 
 
	
            	By:  	
            
	 	
              

              Authorized
                Officer

            

    

     

    CERTIFICATE
      OF AUTHENTICATION

     

    This
      is
      one of the Class M-[1][2][3][4][5][6][7][8][9] Certificates referred to in
      the
      within-mentioned Agreement.

    
      	 	 	 
	 	
              WELLS
                FARGO BANK, N.A.

              as
                Securities Administrator

            
	 
 	 
 	 
 
	
            	By:  	
            
	 	
              

              Authorized
                Signatory

            

    

     

     

    
      
        
        

      

      
        A-2-6

        
          

        

      

      
        
        

      

    

     

    ABBREVIATIONS

     

    The
      following abbreviations, when used in the inscription on the face of this
      instrument, shall be construed as though they were written out in full according
      to applicable laws or regulations:

     

    
      	
              TEN
                COM -

            	
              as
                tenants in common

            	
              UNIF
                GIFT MIN ACT -

            	
                   Custodian      

              (Cust)
                (Minor)

              under
                Uniform Gifts 

              to
                Minors Act

            
	 	 	 	 
	
              TEN
                ENT -

            	
              as
                tenants by the entireties

            	 	
              ________________

              (State)

            
	 	 	 	 
	
              JT
                TEN -

            	
              as
                joint tenants with right 

              if
                survivorship and not as 

              tenants
                in common

            	 	 
	 	 	 	 
	
              Additional
                abbreviations may also be used though not in the above
                list.

            

    

    

    ASSIGNMENT

     

    
      	
              FOR
                VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s)
                

            
	
              unto

            	_________________________________________________________________________________________________________________
	__________________________________________________________________________________________________________________________
	__________________________________________________________________________________________________________________________ 

    

     (Please
      print or typewrite name, address including postal zip code, and Taxpayer
      Identification Number of assignee)

     

    a
      Percentage Interest equal to _____% evidenced by the within Asset Backed
      Pass-Through Certificate and hereby authorize(s) the registration of transfer
      of
      such interest to assignee on the Certificate Register of the Trust
      Fund.

     

    I
      (we)
      further direct the Securities Administrator to issue a new Certificate of a
      like
      Percentage Interest and Class to the above named assignee and deliver such
      Certificate to the following address: _____________________________

    
      	_________________________________________________________________________________________________________________________	 	
              .

            

    

    
      

      
        	 	 	 
	
                Dated:

              	
              	
              
	 	
                

                Signature
                  by or on behalf of assignor

              

      

      
        

        
          	 	 	 
	
                	
                	
                
	 	
                  

                  Signature
                    Guaranteed

                

        

         

      

    

     

    
      
        
        

      

      
        A-2-7

        
          

        

      

      
        
        

      

    

     

    DISTRIBUTION
      INSTRUCTIONS

     

    The
      assignee should include the following for purposes of distribution:

    
       

      
        Distributions
          shall be made, by wire transfer or otherwise, in immediately available
funds
          to
          _______________________

        ____________________________________________________________________________________________________

        
          for
            the
            account of
            ______________________________________________________________________________________

          
            account
              number
              __________________________________________________________________________________or,
              if
              mailed by check, to
____________________________________________________________________________________________________

            
              Applicable
                statements should be mailed to
                _____________________________________________________________

            

            _______________________________________________________________________________________

             

            
              This
                information is provided by
                ___________________________________________________________________________

              
                assignee
                  named above, or
                  _____________________________________________________________________________

                
                  its
                    agent.

                

              

            

          

        

      

       

      
        
          
          

        

        
          A-2-8

          
            

          

        

        
          
          

        

      

    

    EXHIBIT
      A-3A

     

    FORM
      OF
      CLASS CE-1 CERTIFICATE

     

    SOLELY
      FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A “REGULAR INTEREST”
IN A “REAL ESTATE MORTGAGE INVESTMENT CONDUIT,” AS THOSE TERMS ARE DEFINED,
      RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF 1986,
      AS
      AMENDED (THE “CODE”).

     

    THIS
      CERTIFICATE IS SUBORDINATE TO THE CLASS A CERTIFICATES AND THE MEZZANINE
      CERTIFICATES TO THE EXTENT DESCRIBED IN THE AGREEMENT REFERRED TO
      HEREIN.

     

    THIS
      CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT
      OF
      1933, AS AMENDED (THE “ACT”), OR UNDER ANY STATE SECURITIES LAWS. THE HOLDER
      HEREOF, BY PURCHASING THIS CERTIFICATE, AGREES THAT THIS CERTIFICATE MAY BE
      REOFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY IN COMPLIANCE WITH
      THE
      ACT AND OTHER APPLICABLE LAWS AND (1) OUTSIDE OF THE UNITED STATES WITHIN THE
      MEANING OF AND IN COMPLIANCE WITH REGULATION S UNDER THE ACT (“REGULATION S”),
      OR (2) WITHIN THE UNITED STATES TO (A) “QUALIFIED INSTITUTIONAL BUYERS” WITHIN
      THE MEANING OF AND IN COMPLIANCE WITH RULE 144A UNDER THE ACT (“RULE 144A”) OR
      (B) TO INSTITUTIONAL INVESTORS THAT ARE “ACCREDITED INVESTORS” WITHIN THE
      MEANING OF RULE 501(A)(1), (2), (3) OR (7) OF “REGULATION D” UNDER THE
      ACT.

     

    NO
      TRANSFER OF THIS CERTIFICATE MAY BE MADE TO ANY PERSON, UNLESS THE TRANSFEREE
      PROVIDES A CERTIFICATION PURSUANT TO SECTION 6.02(c) OF THE AGREEMENT AND
      COMPLIES WITH SECTION 6.02(g) OF THE AGREEMENT REFERRED TO
      HEREIN.

     

    NO
      PERSON MAY ACQUIRE THIS CERTIFICATE DIRECTLY OR INDIRECTLY BY, ON BEHALF OF,
      OR
      WITH PLAN ASSETS OF AN EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT ARRANGEMENT
      THAT IS SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF
      1974, AS AMENDED, OR SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, UNLESS
      IT HAS PROVIDED THE OPINION OF COUNSEL REFERENCED IN SECTION 6.02(c) OF THE
      AGREEMENT REFERRED TO HEREIN

     

    
      
        
        

      

      
        A-3-1

        
          

        

      

      
        
        

      

    

    

    
      	
              Series
                2007-HE4, Class CE-1

            	 	
              Aggregate
                Certificate Principal Balance of the Class CE-1 Certificates as of
                the
                Issue Date: $_____________

            
	 	 	 
	
              Pass-Through
                Rate: Variable

            	 	
              Denomination:
                $_________________

            
	 	 	 
	
              Cut-off
                Date and date of Pooling and Servicing Agreement: April 1,
                2007

            	 	
              Master
                Servicer: Wells Fargo Bank, N.A.

            
	 	 	 
	
              First
                Distribution Date: May 25, 2007

            	 	
              Trustee:
                HSBC Bank USA, National Association

            
	 	 	 
	
              No.
                __

            	 	
              Issue
                Date: April 30, 2007

            

    

    

    ACE
      SECURITIES CORP. HOME EQUITY LOAN TRUST, SERIES 2007-HE4

    ASSET
      BACKED PASS-THROUGH CERTIFICATE

     

    evidencing
      a beneficial ownership interest in a Trust Fund (the “Trust Fund”) consisting
      primarily of a pool of conventional one- to four-family, first and second lien,
      fixed-rate and adjustable-rate mortgage loans (the “Mortgage Loans”) formed and
      sold by

     

    ACE
      SECURITIES CORP.

     

    THIS
      CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN ACE SECURITIES
      CORP., THE SPONSOR, THE MASTER SERVICER, THE SECURITIES ADMINISTRATOR, THE
      SERVICER, THE TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS
      CERTIFICATE NOR THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY
      OR
      INSTRUMENTALITY OF THE UNITED STATES.

     

    This
      certifies that ________________ is the registered owner of a Percentage Interest
      (obtained by dividing the denomination of this Certificate by the aggregate
      Certificate Principal Balance of the Class CE-1 Certificates as of the Issue
      Date) in that certain beneficial ownership interest evidenced by all of the
      Class CE-1 Certificates in REMIC III created pursuant to a Pooling and Servicing
      Agreement, dated as specified above (the “Agreement”), among ACE Securities
      Corp. as depositor (hereinafter called the “Depositor,” which term includes any
      successor entity under the Agreement), Wells Fargo Bank, N.A. as master servicer
      (the “Master Servicer”) and securities administrator (the “Securities
      Administrator”), Ocwen Loan Servicing, LLC as a servicer (“Ocwen” or a
“Servicer”), GMAC Mortgage, LLC as a servicer (“GMAC” or a “Servicer”) and HSBC
      Bank USA, National Association as trustee (the “Trustee”), a summary of certain
      of the pertinent provisions of which is set forth hereafter. To the extent
      not
      defined herein, the capitalized terms used herein have the meanings assigned
      in
      the Agreement. This Certificate is issued under and is subject to the terms,
      provisions and conditions of the Agreement, to which Agreement the Holder of
      this Certificate by virtue of the acceptance hereof assents and by which such
      Holder is bound.

     

    
      
        
        

      

      
        A-3-2

        
          

        

      

      
        
        

      

    

     

    Interest
      on this Certificate will accrue during the month prior to the month in which
      a
      Distribution Date (as hereinafter defined) occurs on the Notional Amount (as
      defined in the Agreement) hereof at a per annum rate equal to the applicable
      Pass-Through Rate as set forth in the Agreement. Pursuant to the terms of the
      Agreement, distributions will be made on the 25th
      day of
      each month or, if such 25th
      day is
      not a Business Day, the Business Day immediately following such 25th
      day (a
“Distribution Date”), commencing on the First Distribution Date specified above,
      to the Person in whose name this Certificate is registered on the last Business
      Day of the calendar month immediately preceding the month in which the related
      Distribution Date occurs (the “Record Date”), in an amount equal to the product
      of the Percentage Interest evidenced by this Certificate and the amount required
      to be distributed to the Holders of Class CE-1 Certificates on such Distribution
      Date pursuant to the Agreement.

     

    All
      distributions to the Holder of this Certificate under the Agreement will be
      made
      or caused to be made by the Securities Administrator by wire transfer in
      immediately available funds to the account of the Person entitled thereto if
      such Person shall have so notified the Securities Administrator in writing
      at
      least five (5) Business Days prior to the Record Date immediately prior to
      such
      Distribution Date and is the registered owner of Class CE-1 Certificates the
      aggregate initial Certificate Principal Balance of which is in excess of the
      lesser of (i) $5,000,000 or (ii) two-thirds of the aggregate initial Certificate
      Principal Balance of the Class CE-1 Certificates, or otherwise by check mailed
      by first class mail to the address of the Person entitled thereto, as such
      name
      and address shall appear on the Certificate Register. Notwithstanding the above,
      the final distribution on this Certificate will be made after due notice by
      the
      Securities Administrator of the pendency of such distribution and only upon
      presentation and surrender of this Certificate at the office or agency appointed
      by the Securities Administrator for that purpose as provided in the
      Agreement.

     

    This
      Certificate is one of a duly authorized issue of Certificates designated as
      Asset Backed Pass-Through Certificates of the Series specified on the face
      hereof (herein called the “Certificates”) and representing a Percentage Interest
      in the Class of Certificates specified on the face hereof equal to the
      denomination specified on the face hereof divided by the aggregate Certificate
      Principal Balance of the Class of Certificates specified on the face
      hereof.

     

    The
      Certificates are limited in right of payment to certain collections and
      recoveries respecting the Mortgage Loans, all as more specifically set forth
      herein and in the Agreement. As provided in the Agreement, withdrawals from
      the
      Collection Account and the Distribution Account may be made from time to time
      for purposes other than distributions to Certificateholders, such purposes
      including reimbursement of advances made, or certain expenses incurred, with
      respect to the Mortgage Loans.

     

    The
      Agreement permits, with certain exceptions therein provided, the amendment
      thereof and the modification of the rights and obligations of the Depositor,
      the
      Master Servicer, the Trustee, the Securities Administrator, each Servicer party
      thereto and the rights of the Certificateholders under the Agreement at any
      time
      by the Depositor, the Master Servicer, the Trustee, the Securities Administrator
      and each Servicer party thereto with the consent of the Swap Provider (with
      respect to matters affecting the Swap Agreement) and the Holders of Certificates
      entitled to at least 66% of the Voting Rights. Any such consent by the Holder
      of
      this Certificate shall be conclusive and binding on such Holder and upon all
      future Holders of this Certificate and of any Certificate issued upon the
      transfer hereof or in exchange herefor or in lieu hereof whether or not notation
      of such consent is made upon this Certificate. The Agreement also permits the
      amendment thereof, in certain limited circumstances, without the consent of
      the
      Holders of any of the Certificates.

     

    
      
        
        

      

      
        A-3-3

        
          

        

      

      
        
        

      

    

     

    As
      provided in the Agreement and subject to certain limitations therein set forth,
      the transfer of this Certificate is registrable in the Certificate Register
      upon
      surrender of this Certificate for registration of transfer at the offices or
      agencies appointed by the Securities Administrator as provided in the Agreement,
      duly endorsed by, or accompanied by an assignment in the form below or other
      written instrument of transfer in form satisfactory to the Securities
      Administrator duly executed by, the Holder hereof or such Holder’s attorney duly
      authorized in writing, and thereupon one or more new Certificates of the same
      Class in authorized denominations evidencing the same aggregate Percentage
      Interest will be issued to the designated transferee or
      transferees.

     

    No
      transfer of this Certificate shall be made unless the transfer is made pursuant
      to an effective registration statement under the Securities Act of 1933, as
      amended (the “1933 Act”), and an effective registration or qualification under
      applicable state securities laws, or is made in a transaction that does not
      require such registration or qualification. In the event that such a transfer
      of
      this Certificate is to be made without registration or qualification, the
      Securities Administrator shall require receipt of (i) if such transfer is
      purportedly being made in reliance upon Rule 144A under the 1933 Act, written
      certifications from the Holder of the Certificate desiring to effect the
      transfer, and from such Holder’s prospective transferee, substantially in the
      forms attached to the Agreement as Exhibit B-1, (ii) if such transfer is
      purportedly being made in reliance upon Regulation S under the 1933 Act, written
      certifications from the Holder of the Certificate desiring to effect the
      transfer and from such Holder’s prospective transferee, substantially in the
      form attached to the Agreement as Exhibit B-2, (iii) if such transfer is
      purportedly being made in reliance upon Rule 501(a) under the 1933 Act, written
      certifications from the Holder of the Certificate desiring to effect the
      transfer and from such Holder’s prospective transferee, substantially in the
      form attached to the Agreement as Exhibit B-3 and (iv) in all other cases,
      an
      Opinion of Counsel satisfactory to it that such transfer may be made without
      such registration or qualification (which Opinion of Counsel shall not be an
      expense of the Trust Fund or of the Depositor, the Trustee, the Master Servicer
      or the Securities Administrator in their respective capacities as such),
      together with copies of the written certification(s) of the Holder of the
      Certificate desiring to effect the transfer and/or such Holder’s prospective
      transferee upon which such Opinion of Counsel is based. None of the Depositor,
      the Trustee or the Securities Administrator is obligated to register or qualify
      the Class of Certificates specified on the face hereof under the 1933 Act or
      any
      other securities law or to take any action not otherwise required under the
      Agreement to permit the transfer of such Certificates without registration
      or
      qualification. Any Holder desiring to effect a transfer of this Certificate
      shall be required to indemnify the Trustee, the Depositor, the Master Servicer
      and the Securities Administrator against any liability that may result if the
      transfer is not so exempt or is not made in accordance with such federal and
      state laws.

     

    No
      transfer of this Certificate shall be made except in accordance with Section
      6.02(c) of the Agreement.

     

    
      
        
        

      

      
        A-3-4

        
          

        

      

      
        
        

      

    

     

    The
      Certificates are issuable in fully registered form only without coupons in
      Classes and denominations representing Percentage Interests specified in the
      Agreement. As provided in the Agreement and subject to certain limitations
      therein set forth, the Certificates are exchangeable for new Certificates of
      the
      same Class in authorized denominations evidencing the same aggregate Percentage
      Interest, as requested by the Holder surrendering the same. No service charge
      will be made for any such registration of transfer or exchange of Certificates,
      but the Securities Administrator may require payment of a sum sufficient to
      cover any tax or other governmental charge that may be imposed in connection
      with any transfer or exchange of Certificates.

     

    The
      Depositor, the Master Servicer, the Trustee, the Securities Administrator,
      Ocwen, GMAC, Countrywide Home Loans Sercvicing LP (“Countrywide” or a
“Servicer”; together with Ocwen and GMAC, the “Servicers”) and any agent of the
      Depositor, the Master Servicer, the Trustee, the Securities Administrator or
      a
      Servicer may treat the Person in whose name this Certificate is registered
      as
      the owner hereof for all purposes, and none of the Depositor, the Master
      Servicer, the Trustee, the Securities Administrator, the Servicers nor any
      such
      agent shall be affected by notice to the contrary.

     

    The
      obligations created by the Agreement and the Trust Fund created thereby shall
      terminate upon payment to the Certificateholders of all amounts held by the
      Securities Administrator and required to be paid to them pursuant to the
      Agreement following the earlier of (i) the final payment or other liquidation
      (or any advance with respect thereto) of the last Mortgage Loan remaining in
      REMIC I and (ii) the purchase by the party designated in the Agreement at a
      price determined as provided in the Agreement from REMIC I of all the Mortgage
      Loans and all property acquired in respect of such Mortgage Loans. The Agreement
      permits, but does not require, the party designated in the Agreement to purchase
      from REMIC I all the Mortgage Loans and all property acquired in respect of
      any
      Mortgage Loan at a price determined as provided in the Agreement. The exercise
      of such right will effect early retirement of the Certificates; however, such
      right to purchase is subject to the aggregate Scheduled Principal Balance of
      the
      Mortgage Loans (and properties acquired in respect thereof) at the time of
      purchase being less than or equal to 10% of the sum of (i) the aggregate
      principal balance of the Mortgage Loans as of the Cut-off Date and (ii) the
      Original Pre-Funded Amount.

     

    The
      recitals contained herein shall be taken as statements of the Depositor and
      neither the Trustee nor the Securities Administrator assume any responsibility
      for their correctness.

     

    Unless
      the certificate of authentication hereon has been executed by the Securities
      Administrator, by manual signature, this Certificate shall not be entitled
      to
      any benefit under the Agreement or be valid for any purpose.

     

    
      
        
        

      

      
        A-3-5

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the Securities Administrator has caused this Certificate to
      be
      duly executed.

    
      	 	 	 
	
              Dated:

            	 
	 	 
	 	
              WELLS
                FARGO BANK, N.A.

              as
                Securities Administrator

            
	 
 	 
 	 
 
	
            	By:  	
            
	 	
              

              Authorized
                Officer

            

    

     

    CERTIFICATE
      OF AUTHENTICATION

     

    This
      is
      one of the Class CE-1 Certificates referred to in the within-mentioned
      Agreement.

    
      	 	 	 
	 	
              WELLS
                FARGO BANK, N.A.

              as
                Securities Administrator

            
	 
 	 
 	 
 
	
            	By:  	
            
	 	
              

              Authorized
                Officer

            

    

     

     

    
      
        
        

      

      
        A-3-6

        
          

        

      

      
        
        

      

    

    

    ABBREVIATIONS

     

    The
      following abbreviations, when used in the inscription on the face of this
      instrument, shall be construed as though they were written out in full according
      to applicable laws or regulations:

     

    
      	
              TEN
                COM -

            	
              as
                tenants in common

            	
              UNIF
                GIFT MIN ACT -

            	
                   Custodian      

              (Cust)
                (Minor)

              under
                Uniform Gifts 

              to
                Minors Act

            
	 	 	 	 
	
              TEN
                ENT -

            	
              as
                tenants by the entireties

            	 	
              ________________

              (State)

            
	 	 	 	 
	
              JT
                TEN -

            	
              as
                joint tenants with right 

              if
                survivorship and not as 

              tenants
                in common

            	 	 
	 	 	 	 
	
              Additional
                abbreviations may also be used though not in the above
                list.

            

    

    

    ASSIGNMENT

     

    
      	
              FOR
                VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s)
                

            
	
              unto

            	
            
	
            
	
            

    

    (Please
      print or typewrite name, address including postal zip code, and Taxpayer
      Identification Number of assignee) 

     

    a
      Percentage Interest equal to ____% evidenced by the within Asset Backed
      Pass-Through Certificate and hereby authorize(s) the registration of transfer
      of
      such interest to assignee on the Certificate Register of the Trust
      Fund.

     

    I
      (we)
      further direct the Securities Administrator to issue a new Certificate of a
      like
      Percentage Interest and Class to the above named assignee and deliver such
      Certificate to the following address: _____________________________

    
      	_________________________________________________________________________________________________________________________	 	
              .

            

    

    
      

      
        	 	 	 
	
                Dated:

              	
              	
              
	 	
                

                Signature
                  by or on behalf of assignor

              

      

      
        

        
          	 	 	 
	
                	
                	
                
	 	
                  

                  Signature
                    Guaranteed

                

        

      

    

     

     

    
      
        
        

      

      
        A-3-7

        
          

        

      

      
        
        

      

    

    DISTRIBUTION
      INSTRUCTIONS

     

    The
      assignee should include the following for purposes of distribution:

    
      

        
          	
                  Distributions
                    shall be made, by wire transfer or otherwise, in immediately
                    available
                    

                
	
                  funds
                    to

                	 
	 
	
                  for
                    the account of

                	 
	
                  account
                    number

                	 	
                  or,
                    if mailed by check, to

                
	 
	
                  Applicable
                    statements should be mailed to

                	 
	 
	 
	
                  This
                    information is provided by

                	 
	
                  assignee
                    named above, or

                	 
	
                  its
                    agent.

                	 

        

      

       

    

    
      
        
        

      

      
        A-3-8

        
          

        

      

      
        
        

      

    

    EXHIBIT
      A-3B

     

    FORM
      OF
      CLASS CE-2 CERTIFICATE

     

    SOLELY
      FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A “REGULAR INTEREST”
IN A “REAL ESTATE MORTGAGE INVESTMENT CONDUIT,” AS THOSE TERMS ARE DEFINED,
      RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF 1986,
      AS
      AMENDED (THE “CODE”).

     

    THIS
      CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT
      OF
      1933, AS AMENDED (THE “ACT”), OR UNDER ANY STATE SECURITIES LAWS. THE HOLDER
      HEREOF, BY PURCHASING THIS CERTIFICATE, AGREES THAT THIS CERTIFICATE MAY BE
      REOFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY IN COMPLIANCE WITH
      THE
      ACT AND OTHER APPLICABLE LAWS AND (1) OUTSIDE OF THE UNITED STATES WITHIN THE
      MEANING OF AND IN COMPLIANCE WITH REGULATION S UNDER THE ACT (“REGULATION S”),
      OR (2) WITHIN THE UNITED STATES TO (A) “QUALIFIED INSTITUTIONAL BUYERS” WITHIN
      THE MEANING OF AND IN COMPLIANCE WITH RULE 144A UNDER THE ACT (“RULE 144A”) OR
      (B) TO INSTITUTIONAL INVESTORS THAT ARE “ACCREDITED INVESTORS” WITHIN THE
      MEANING OF RULE 501(A)(1), (2), (3) OR (7) OF “REGULATION D” UNDER THE
      ACT.

     

    NO
      TRANSFER OF THIS CERTIFICATE MAY BE MADE TO ANY PERSON, UNLESS THE TRANSFEREE
      PROVIDES A CERTIFICATION PURSUANT TO SECTION 6.02(c) OF THE
      AGREEMENT.

     

    NO
      PERSON MAY ACQUIRE THIS CERTIFICATE DIRECTLY OR INDIRECTLY BY, ON BEHALF OF,
      OR
      WITH PLAN ASSETS OF AN EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT ARRANGEMENT
      THAT IS SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF
      1974, AS AMENDED, OR SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, UNLESS
      IT HAS PROVIDED THE OPINION OF COUNSEL REFERENCED IN SECTION 6.02(c) OF THE
      AGREEMENT REFERRED TO HEREIN

     

    
      
        
        

      

      
        A-3-1

        
          

        

      

      
        
        

      

    

    

    
      	
              Series
                2007-HE4, Class CE-2

            	 	
              Aggregate
                Percentage Interest of the Class CE-2 Certificates as of the Issue
                Date:
                100%

            
	 	 	 
	
              Cut-off
                Date and date of Pooling and Servicing Agreement: April 1,
                2007

            	 	
              Master
                Servicer: Wells Fargo Bank, N.A.

            
	 	 	 
	
              First
                Distribution Date: May 25, 2007

            	 	
              Trustee:
                HSBC Bank USA, National Association

            
	 	 	 
	
              No.
                __

            	 	
              Issue
                Date: April 30, 2007

            

    

    

    ACE
      SECURITIES CORP. HOME EQUITY LOAN TRUST, SERIES 2007-HE4

    ASSET
      BACKED PASS-THROUGH CERTIFICATE

     

    evidencing
      a beneficial ownership interest in a Trust Fund (the “Trust Fund”) consisting
      primarily of a pool of conventional one- to four-family, first and second lien,
      fixed-rate and adjustable-rate mortgage loans (the “Mortgage Loans”) formed and
      sold by

     

    ACE
      SECURITIES CORP.

     

    THIS
      CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN ACE SECURITIES
      CORP., THE SPONSOR, THE MASTER SERVICER, THE SECURITIES ADMINISTRATOR, THE
      SERVICER, THE TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS
      CERTIFICATE NOR THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY
      OR
      INSTRUMENTALITY OF THE UNITED STATES.

     

    This
      certifies that ________________ is the registered owner of the Percentage
      Interest set forth above in that certain beneficial ownership interest evidenced
      by all of the Class CE-2 Certificates in REMIC III created pursuant to a Pooling
      and Servicing Agreement, dated as specified above (the “Agreement”), among ACE
      Securities Corp. as depositor (hereinafter called the “Depositor,” which term
      includes any successor entity under the Agreement), Wells Fargo Bank, N.A.
      as
      master servicer (the “Master Servicer”) and securities administrator (the
“Securities Administrator”), Ocwen Loan Servicing, LLC as a servicer (“Ocwen” or
      a “Servicer”), GMAC Mortgage, LLC as a servicer (“GMAC” or a “Servicer”) and
      HSBC Bank USA, National Association as trustee (the “Trustee”), a summary of
      certain of the pertinent provisions of which is set forth hereafter. To the
      extent not defined herein, the capitalized terms used herein have the meanings
      assigned in the Agreement. This Certificate is issued under and is subject
      to
      the terms, provisions and conditions of the Agreement, to which Agreement the
      Holder of this Certificate by virtue of the acceptance hereof assents and by
      which such Holder is bound.

     

    Interest
      on this Certificate will accrue during the month prior to the month in which
      a
      Distribution Date (as hereinafter defined) occurs on the Notional Amount (as
      defined in the Agreement) hereof at a per annum rate equal to the applicable
      Pass-Through Rate as set forth in the Agreement. Pursuant to the terms of the
      Agreement, distributions will be made on the 25th
      day of
      each month or, if such 25th
      day is
      not a Business Day, the Business Day immediately following such 25th
      day (a
“Distribution Date”), commencing on the First Distribution Date specified above,
      to the Person in whose name this Certificate is registered on the last Business
      Day of the calendar month immediately preceding the month in which the related
      Distribution Date occurs (the “Record Date”), in an amount equal to the product
      of the Percentage Interest evidenced by this Certificate and the amount required
      to be distributed to the Holders of Class CE-2 Certificates on such Distribution
      Date pursuant to the Agreement.

     

    
      
        
        

      

      
        A-3-2

        
          

        

      

      
        
        

      

    

     

    All
      distributions to the Holder of this Certificate under the Agreement will be
      made
      or caused to be made by the Securities Administrator by wire transfer in
      immediately available funds to the account of the Person entitled thereto if
      such Person shall have so notified the Securities Administrator in writing
      at
      least five (5) Business Days prior to the Record Date immediately prior to
      such
      Distribution Date and is the registered owner of Class CE-2 Certificates, or
      otherwise by check mailed by first class mail to the address of the Person
      entitled thereto, as such name and address shall appear on the Certificate
      Register. Notwithstanding the above, the final distribution on this Certificate
      will be made after due notice by the Securities Administrator of the pendency
      of
      such distribution and only upon presentation and surrender of this Certificate
      at the office or agency appointed by the Securities Administrator for that
      purpose as provided in the Agreement.

     

    This
      Certificate is one of a duly authorized issue of Certificates designated as
      Asset Backed Pass-Through Certificates of the Series specified on the face
      hereof (herein called the “Certificates”) and representing a Percentage Interest
      in the Class of Certificates specified on the face hereof.

     

    The
      Certificates are limited in right of payment to certain collections and
      recoveries in respect of the Mortgage Loans, all as more specifically set forth
      herein and in the Agreement. As provided in the Agreement, withdrawals from
      the
      Collection Account and the Distribution Account may be made from time to time
      for purposes other than distributions to Certificateholders, such purposes
      including reimbursement of advances made, or certain expenses incurred, with
      respect to the Mortgage Loans.

     

    The
      Agreement permits, with certain exceptions therein provided, the amendment
      thereof and the modification of the rights and obligations of the Depositor,
      the
      Master Servicer, the Trustee, the Securities Administrator, each Servicer party
      thereto and the rights of the Certificateholders under the Agreement at any
      time
      by the Depositor, the Master Servicer, the Trustee, the Securities Administrator
      and each Servicer party thereto with the consent of the Swap Provider (with
      respect to matters affecting the Swap Agreement) and the Holders of Certificates
      entitled to at least 66% of the Voting Rights. Any such consent by the Holder
      of
      this Certificate shall be conclusive and binding on such Holder and upon all
      future Holders of this Certificate and of any Certificate issued upon the
      transfer hereof or in exchange herefor or in lieu hereof whether or not notation
      of such consent is made upon this Certificate. The Agreement also permits the
      amendment thereof, in certain limited circumstances, without the consent of
      the
      Holders of any of the Certificates.

     

    As
      provided in the Agreement and subject to certain limitations therein set forth,
      the transfer of this Certificate is registrable in the Certificate Register
      upon
      surrender of this Certificate for registration of transfer at the offices or
      agencies appointed by the Securities Administrator as provided in the Agreement,
      duly endorsed by, or accompanied by an assignment in the form below or other
      written instrument of transfer in form satisfactory to the Securities
      Administrator duly executed by, the Holder hereof or such Holder’s attorney duly
      authorized in writing, and thereupon one or more new Certificates of the same
      Class in authorized denominations evidencing the same aggregate Percentage
      Interest will be issued to the designated transferee or
      transferees.

     

    
      
        
        

      

      
        A-3-3

        
          

        

      

      
        
        

      

    

     

    No
      transfer of this Certificate shall be made unless the transfer is made pursuant
      to an effective registration statement under the Securities Act of 1933, as
      amended (the “1933 Act”), and an effective registration or qualification under
      applicable state securities laws, or is made in a transaction that does not
      require such registration or qualification. In the event that such a transfer
      of
      this Certificate is to be made without registration or qualification, the
      Securities Administrator shall require receipt of (i) if such transfer is
      purportedly being made in reliance upon Rule 144A under the 1933 Act, written
      certifications from the Holder of the Certificate desiring to effect the
      transfer, and from such Holder’s prospective transferee, substantially in the
      forms attached to the Agreement as Exhibit B-1, (ii) if such transfer is
      purportedly being made in reliance upon Regulation S under the 1933 Act, written
      certifications from the Holder of the Certificate desiring to effect the
      transfer and from such Holder’s prospective transferee, substantially in the
      form attached to the Agreement as Exhibit B-2, (iii) if such transfer is
      purportedly being made in reliance upon Rule 501(a) under the 1933 Act, written
      certifications from the Holder of the Certificate desiring to effect the
      transfer and from such Holder’s prospective transferee, substantially in the
      form attached to the Agreement as Exhibit B-3 and (iv) in all other cases,
      an
      Opinion of Counsel satisfactory to it that such transfer may be made without
      such registration or qualification (which Opinion of Counsel shall not be an
      expense of the Trust Fund or of the Depositor, the Trustee, the Master Servicer
      or the Securities Administrator in their respective capacities as such),
      together with copies of the written certification(s) of the Holder of the
      Certificate desiring to effect the transfer and/or such Holder’s prospective
      transferee upon which such Opinion of Counsel is based. None of the Depositor,
      the Trustee or the Securities Administrator is obligated to register or qualify
      the Class of Certificates specified on the face hereof under the 1933 Act or
      any
      other securities law or to take any action not otherwise required under the
      Agreement to permit the transfer of such Certificates without registration
      or
      qualification. Any Holder desiring to effect a transfer of this Certificate
      shall be required to indemnify the Trustee, the Depositor, the Master Servicer
      and the Securities Administrator against any liability that may result if the
      transfer is not so exempt or is not made in accordance with such federal and
      state laws.

     

    No
      transfer of this Certificate shall be made except in accordance with Section
      6.02(c) of the Agreement.

     

    The
      Certificates are issuable in fully registered form only without coupons in
      Classes and denominations representing Percentage Interests specified in the
      Agreement. As provided in the Agreement and subject to certain limitations
      therein set forth, the Certificates are exchangeable for new Certificates of
      the
      same Class in authorized denominations evidencing the same aggregate Percentage
      Interest, as requested by the Holder surrendering the same. No service charge
      will be made for any such registration of transfer or exchange of Certificates,
      but the Securities Administrator may require payment of a sum sufficient to
      cover any tax or other governmental charge that may be imposed in connection
      with any transfer or exchange of Certificates.

     

    
      
        
        

      

      
        A-3-4

        
          

        

      

      
        
        

      

    

     

    The
      Depositor, the Master Servicer, the Trustee, the Securities Administrator,
      Ocwen, GMAC, Countrywide Home Loans Sercvicing LP (“Countrywide” or a
“Servicer”; together with Ocwen and GMAC, the “Servicers”) and any agent of the
      Depositor, the Master Servicer, the Trustee, the Securities Administrator or
      a
      Servicer may treat the Person in whose name this Certificate is registered
      as
      the owner hereof for all purposes, and none of the Depositor, the Master
      Servicer, the Trustee, the Securities Administrator, the Servicers nor any
      such
      agent shall be affected by notice to the contrary.

     

    The
      obligations created by the Agreement and the Trust Fund created thereby shall
      terminate upon payment to the Certificateholders of all amounts held by the
      Securities Administrator and required to be paid to them pursuant to the
      Agreement following the earlier of (i) the final payment or other liquidation
      (or any advance with respect thereto) of the last Mortgage Loan remaining in
      REMIC I and (ii) the purchase by the party designated in the Agreement at a
      price determined as provided in the Agreement from REMIC I of all the Mortgage
      Loans and all property acquired in respect of such Mortgage Loans. The Agreement
      permits, but does not require, the party designated in the Agreement to purchase
      from REMIC I all the Mortgage Loans and all property acquired in respect of
      any
      Mortgage Loan at a price determined as provided in the Agreement. The exercise
      of such right will effect early retirement of the Certificates; however, such
      right to purchase is subject to the aggregate Scheduled Principal Balance of
      the
      Mortgage Loans (and properties acquired in respect thereof) at the time of
      purchase being less than or equal to 10% of the sum of (i) the aggregate
      principal balance of the Mortgage Loans as of the Cut-off Date and (ii) the
      Original Pre-Funded Amount.

     

    The
      recitals contained herein shall be taken as statements of the Depositor and
      neither the Trustee nor the Securities Administrator assume any responsibility
      for their correctness.

     

    Unless
      the certificate of authentication hereon has been executed by the Securities
      Administrator, by manual signature, this Certificate shall not be entitled
      to
      any benefit under the Agreement or be valid for any purpose.

     

    
      
        
        

      

      
        A-3-5

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the Securities Administrator has caused this Certificate to
      be
      duly executed.

    
      	 	 	 
	Dated:	 
	 	 
	 	
              WELLS
                FARGO BANK, N.A.

              as
                Securities Administrator

            
	 
 	 
 	 
 
	
            	By:  	
            
	 	
              

              Authorized
                Officer

            

    

     

    CERTIFICATE
      OF AUTHENTICATION

     

    This
      is
      one of the Class CE-2 Certificates referred to in the within-mentioned
      Agreement.

    
      
        	 	 	 
	 	
                WELLS
                  FARGO BANK, N.A.

                as
                  Securities Administrator

              
	 
 	 
 	 
 
	
              	By:  	
              
	 	
                

                Authorized
                  Officer

              

      

       

    

     

    
      
        
        

      

      
        A-3-6

        
          

        

      

      
        
        

      

    

     

    ABBREVIATIONS

     

    The
      following abbreviations, when used in the inscription on the face of this
      instrument, shall be construed as though they were written out in full according
      to applicable laws or regulations:

     

    
      	
              TEN
                COM -

            	
              as
                tenants in common

            	
              UNIF
                GIFT MIN ACT -

            	
                   Custodian      

              (Cust)
                (Minor)

              under
                Uniform Gifts 

              to
                Minors Act

            
	 	 	 	 
	
              TEN
                ENT -

            	
              as
                tenants by the entireties

            	 	
              ________________

              (State)

            
	 	 	 	 
	
              JT
                TEN -

            	
              as
                joint tenants with right 

              if
                survivorship and not as 

              tenants
                in common

            	 	 
	 	 	 	 
	
              Additional
                abbreviations may also be used though not in the above
                list.

            

    

    

    ASSIGNMENT

     

    
      	
              FOR
                VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s)
                

            
	
              unto

            	___________________________________________________________________________
	______________________________________________________________________________________
	______________________________________________________________________________________

    

    (Please
      print or typewrite name, address including postal zip code, and Taxpayer
      Identification Number of assignee) 

     

    a
      Percentage Interest equal to ____% evidenced by the within Asset Backed
      Pass-Through Certificate and hereby authorize(s) the registration of transfer
      of
      such interest to assignee on the Certificate Register of the Trust
      Fund.

     

    I
      (we)
      further direct the Securities Administrator to issue a new Certificate of a
      like
      Percentage Interest and Class to the above named assignee and deliver such
      Certificate to the following address: _____________________________

    
      	_________________________________________________________________________________________________________________________	 	
              .

            

    

    
      

      
        	 	 	 
	
                Dated:

              	
              	
              
	 	
                

                Signature
                  by or on behalf of assignor

              

      

      
        

        
          	 	 	 
	
                	
                	
                
	 	
                  

                  Signature
                    Guaranteed

                

        

         

      

    
      
        
        

      

      
        A-3-7

        
          

        

      

      
        
        

      

    

    DISTRIBUTION
      INSTRUCTIONS

     

    The
      assignee should include the following for purposes of distribution:

    
      
        

          
            	
                    Distributions
                      shall be made, by wire transfer or otherwise, in immediately
                      available
                      

                  
	
                    funds
                      to

                  	 
	 
	
                    for
                      the account of

                  	 
	
                    account
                      number

                  	 	
                    or,
                      if mailed by check, to

                  
	 
	
                    Applicable
                      statements should be mailed to

                  	 
	 
	 
	
                    This
                      information is provided by

                  	 
	
                    assignee
                      named above, or

                  	 
	
                    its
                      agent.

                  	 

          

      

    

    
      
        
        

      

      
        A-3-8

        
          

        

      

      
        
        

      

    

    EXHIBIT
      A-4

     

    FORM
      OF
      CLASS P CERTIFICATE

     

    SOLELY
      FOR U.S. FEDERAL INCOME TAX PURPOSES,
      THIS CERTIFICATE IS A “REGULAR INTEREST” IN A “REAL ESTATE MORTGAGE INVESTMENT
      CONDUIT,” AS THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF
      THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE
“CODE”).

     

    THIS
      CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT
      OF
      1933, AS AMENDED (THE “ACT”), OR UNDER ANY STATE SECURITIES LAWS. THE HOLDER
      HEREOF, BY PURCHASING THIS CERTIFICATE, AGREES THAT THIS CERTIFICATE MAY BE
      REOFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY IN COMPLIANCE WITH
      THE
      ACT AND OTHER APPLICABLE LAWS AND (1) OUTSIDE OF THE UNITED STATES WITHIN THE
      MEANING OF AND IN COMPLIANCE WITH REGULATION S UNDER THE ACT (“REGULATION S”),
      OR (2) WITHIN THE UNITED STATES TO (A) “QUALIFIED INSTITUTIONAL BUYERS” WITHIN
      THE MEANING OF AND IN COMPLIANCE WITH RULE 144A UNDER THE ACT (“RULE 144A”) OR
      (B) TO INSTITUTIONAL INVESTORS THAT ARE “ACCREDITED INVESTORS” WITHIN THE
      MEANING OF RULE 501(A)(1), (2), (3) OR (7) OF “REGULATION D” UNDER THE
      ACT.

     

    NO
      TRANSFER OF THIS CERTIFICATE MAY BE MADE TO ANY PERSON, UNLESS THE TRANSFEREE
      PROVIDES A CERTIFICATION PURSUANT TO SECTION 6.02(c) OF THE AGREEMENT REFERRED
      TO HEREIN.

     

    NO
      PERSON MAY ACQUIRE THIS CERTIFICATE DIRECTLY OR INDIRECTLY BY, ON BEHALF OF,
      OR
      WITH PLAN ASSETS OF AN EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT ARRANGEMENT
      THAT IS SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF
      1974, AS AMENDED, OR SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, UNLESS
      IT HAS PROVIDED THE OPINION OF COUNSEL REFERENCED IN SECTION 6.02(c) OF THE
      AGREEMENT REFERRED TO HEREIN.

     

    
      
        
        

      

      
        A-4-1

        
          

        

      

      
        
        

      

    

    

    
      	
              Series
                2007-HE4, Class P

            	 	
              Aggregate
                Certificate Principal Balance of the Class P Certificates as of the
                Issue
                Date: $100.00

            
	 	 	 
	
              Cut-off
                Date and date of Pooling and Servicing Agreement: April 1,
                2007

            	 	
              Denomination:
                $100.00

            
	 	 	 
	
              First
                Distribution Date: May 25, 2007

            	 	
              Master
                Servicer: Wells Fargo Bank, N.A.

            
	 	 	 
	
              No.
                __

            	 	
              Trustee:
                HSBC Bank USA, National Association

            
	 	 	 
	 	 	
              Issue
                Date: April 30, 2007

            

    

    

    ACE
      SECURITIES CORP. HOME EQUITY LOAN TRUST, SERIES 2007-HE4

    ASSET
      BACKED PASS-THROUGH CERTIFICATE

     

    evidencing
      a beneficial ownership interest in a Trust Fund (the “Trust Fund”) consisting
      primarily of a pool of conventional one- to four-family, first and second lien,
      fixed-rate and adjustable-rate mortgage loans (the “Mortgage Loans”) formed and
      sold by

     

    ACE
      SECURITIES CORP.

     

    THIS
      CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN ACE SECURITIES
      CORP., THE SPONSOR, THE MASTER SERVICER, THE SECURITIES ADMINISTRATOR, THE
      SERVICER, THE TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS
      CERTIFICATE NOR THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY
      OR
      INSTRUMENTALITY OF THE UNITED STATES.

     

    This
      certifies that____________________ is the registered owner of a Percentage
      Interest (obtained by dividing the denomination of this Certificate by the
      aggregate Certificate Principal Balance of the Class P Certificates as of the
      Issue Date) in that certain beneficial ownership interest evidenced by all
      of
      the Class P Certificates in REMIC III created pursuant to a Pooling and
      Servicing Agreement, dated as specified above (the “Agreement”), among ACE
      Securities Corp. as depositor (hereinafter called the “Depositor”, which term
      includes any successor entity under the Agreement), Wells Fargo Bank, N.A.
      as
      master servicer (the “Master Servicer”) and securities administrator (the
“Securities Administrator”), Ocwen Loan Servicing, LLC as a servicer (“Ocwen” or
      a “Servicer”), GMAC Mortgage, LLC as a servicer (“GMAC” or a “Servicer”) and
      HSBC Bank USA, National Association as trustee (the “Trustee”), a summary of
      certain of the pertinent provisions of which is set forth hereafter. To the
      extent not defined herein, the capitalized terms used herein have the meanings
      assigned in the Agreement. This Certificate is issued under and is subject
      to
      the terms, provisions and conditions of the Agreement, to which Agreement the
      Holder of this Certificate by virtue of the acceptance hereof assents and by
      which such Holder is bound.

     

    
      
        
        

      

      
        A-4-2

        
          

        

      

      
        
        

      

    

     

    Pursuant
      to the terms of the Agreement, distributions will be made on the 25th
      day of
      each month or, if such 25th
      day is
      not a Business Day, the Business Day immediately following such 25th
      day (a
“Distribution Date”), commencing on the First Distribution Date specified above,
      to the Person in whose name this Certificate is registered on the last Business
      Day of the calendar month immediately preceding the month in which the related
      Distribution Date occurs (the “Record Date”), in an amount equal to the product
      of the Percentage Interest evidenced by this Certificate and the amount required
      to be distributed to the Holders of Class P Certificates on such Distribution
      Date pursuant to the Agreement.

     

    All
      distributions to the Holder of this Certificate under the Agreement will be
      made
      or caused to be made by the Securities Administrator by wire transfer in
      immediately available funds to the account of the Person entitled thereto if
      such Person shall have so notified the Securities Administrator in writing
      at
      least five (5) Business Days prior to the Record Date immediately prior to
      such
      Distribution Date and is the registered owner of Class P Certificates the
      aggregate initial Certificate Principal Balance of which is in excess of the
      lesser of (i) $5,000,000 or (ii) two-thirds of the aggregate initial Certificate
      Principal Balance of the Class P Certificates, or otherwise by check mailed
      by
      first class mail to the address of the Person entitled thereto, as such name
      and
      address shall appear on the Certificate Register. Notwithstanding the above,
      the
      final distribution on this Certificate will be made after due notice by the
      Securities Administrator of the pendency of such distribution and only upon
      presentation and surrender of this Certificate at the office or agency appointed
      by the Securities Administrator for that purpose as provided in the
      Agreement.

     

    This
      Certificate is one of a duly authorized issue of Certificates designated as
      Asset Backed Pass-Through Certificates of the Series specified on the face
      hereof (herein called the “Certificates”) and representing a Percentage Interest
      in the Class of Certificates specified on the face hereof equal to the
      denomination specified on the face hereof divided by the aggregate Certificate
      Principal Balance of the Class of Certificates specified on the face
      hereof.

     

    The
      Certificates are limited in right of payment to certain collections and
      recoveries in respect of the Mortgage Loans, all as more specifically set forth
      herein and in the Agreement. As provided in the Agreement, withdrawals from
      the
      Collection Account and the Distribution Account may be made from time to time
      for purposes other than distributions to Certificateholders, such purposes
      including reimbursement of advances made, or certain expenses incurred, with
      respect to the Mortgage Loans.

     

    The
      Agreement permits, with certain exceptions therein provided, the amendment
      thereof and the modification of the rights and obligations of the Depositor,
      the
      Master Servicer, the Trustee, the Securities Administrator, each Servicer party
      thereto and the rights of the Certificateholders under the Agreement at any
      time
      by the Depositor, the Master Servicer, the Trustee, the Securities Administrator
      and each Servicer party thereto with the consent of the Swap Provider (with
      respect to matters affecting the Swap Agreement) and the Holders of Certificates
      entitled to at least 66% of the Voting Rights. Any such consent by the Holder
      of
      this Certificate shall be conclusive and binding on such Holder and upon all
      future Holders of this Certificate and of any Certificate issued upon the
      transfer hereof or in exchange herefor or in lieu hereof whether or not notation
      of such consent is made upon this Certificate. The Agreement also permits the
      amendment thereof, in certain limited circumstances, without the consent of
      the
      Holders of any of the Certificates.

     

    
      
        
        

      

      
        A-4-3

        
          

        

      

      
        
        

      

    

     

    As
      provided in the Agreement and subject to certain limitations therein set forth,
      the transfer of this Certificate is registrable in the Certificate Register
      upon
      surrender of this Certificate for registration of transfer at the offices or
      agencies appointed by the Securities Administrator as provided in the Agreement,
      duly endorsed by, or accompanied by an assignment in the form below or other
      written instrument of transfer in form satisfactory to the Securities
      Administrator duly executed by, the Holder hereof or such Holder’s attorney duly
      authorized in writing, and thereupon one or more new Certificates of the same
      Class in authorized denominations evidencing the same aggregate Percentage
      Interest will be issued to the designated transferee or
      transferees.

     

    No
      transfer of this Certificate shall be made unless the transfer is made pursuant
      to an effective registration statement under the Securities Act of 1933, as
      amended (the “1933 Act”), and an effective registration or qualification under
      applicable state securities laws, or is made in a transaction that does not
      require such registration or qualification. In the event that such a transfer
      of
      this Certificate is to be made without registration or qualification, the
      Securities Administrator shall require receipt of (i) if such transfer is
      purportedly being made in reliance upon Rule 144A under the 1933 Act, written
      certifications from the Holder of the Certificate desiring to effect the
      transfer, and from such Holder’s prospective transferee, substantially in the
      forms attached to the Agreement as Exhibit B-1, (ii) if such transfer is
      purportedly being made in reliance upon Regulation S under the 1933 Act, written
      certifications from the Holder of the Certificate desiring to effect the
      transfer and from such Holder’s prospective transferee, substantially in the
      form attached to the Agreement as Exhibit B-2, (iii) if such transfer is
      purportedly being made in reliance upon Rule 501(a) under the 1933 Act,
written
      certifications from the Holder of the Certificate desiring to effect the
      transfer and from such Holder’s prospective transferee, substantially in the
      form attached to the Agreement as Exhibit B-3
      and
      (iv) in all other cases, an Opinion of Counsel satisfactory to it that such
      transfer may be made without such registration or qualification (which Opinion
      of Counsel shall not be an expense of the Trust Fund or of the Depositor, the
      Trustee, the Master Servicer or the Securities Administrator in their respective
      capacities as such), together with copies of the written certification(s) of
      the
      Holder of the Certificate desiring to effect the transfer and/or such Holder’s
      prospective transferee upon which such Opinion of Counsel is based. None of
      the
      Depositor, the Trustee or the Securities Administrator is obligated to register
      or qualify the Class of Certificates specified on the face hereof under the
      1933
      Act or any other securities law or to take any action not otherwise required
      under the Agreement to permit the transfer of such Certificates without
      registration or qualification. Any Holder desiring to effect a transfer of
      this
      Certificate shall be required to indemnify the Trustee, the Depositor, the
      Master Servicer and the Securities Administrator against any liability that
      may
      result if the transfer is not so exempt or is not made in accordance with such
      federal and state laws.

     

    No
      transfer of this Certificate shall be made except in accordance with Section
      6.02(c) of the Agreement.

     

    The
      Certificates are issuable in fully registered form only without coupons in
      Classes and denominations representing Percentage Interests specified in the
      Agreement. As provided in the Agreement and subject to certain limitations
      therein set forth, the Certificates are exchangeable for new Certificates of
      the
      same Class in authorized denominations evidencing the same aggregate Percentage
      Interest, as requested by the Holder surrendering the same. No service charge
      will be made for any such registration of transfer or exchange of Certificates,
      but the Securities Administrator may require payment of a sum sufficient to
      cover any tax or other governmental charge that may be imposed in connection
      with any transfer or exchange of Certificates.

     

    
      
        
        

      

      
        A-4-4

        
          

        

      

      
        
        

      

    

     

    The
      Depositor, the Master Servicer, the Trustee, the Securities Administrator,
      Ocwen, GMAC, Countrywide Home Loans Sercvicing LP (“Countrywide” or a
“Servicer”; together with Ocwen and GMAC, the “Servicers”) and any agent of the
      Depositor, the Master Servicer, the Trustee, the Securities Administrator or
      a
      Servicer may treat the Person in whose name this Certificate is registered
      as
      the owner hereof for all purposes, and none of the Depositor, the Master
      Servicer, the Trustee, the Securities Administrator, the Servicers nor any
      such
      agent shall be affected by notice to the contrary.

     

    The
      obligations created by the Agreement and the Trust Fund created thereby shall
      terminate upon payment to the Certificateholders of all amounts held by the
      Securities Administrator and required to be paid to them pursuant to the
      Agreement following the earlier of (i) the final payment or other liquidation
      (or any advance with respect thereto) of the last Mortgage Loan remaining in
      REMIC I and (ii) the purchase by the party designated in the Agreement at a
      price determined as provided in the Agreement from REMIC I of all the Mortgage
      Loans and all property acquired in respect of such Mortgage Loans. The Agreement
      permits, but does not require, the party designated in the Agreement to purchase
      from REMIC I all the Mortgage Loans and all property acquired in respect of
      any
      Mortgage Loan at a price determined as provided in the Agreement. The exercise
      of such right will effect early retirement of the Certificates; however, such
      right to purchase is subject to the aggregate Scheduled Principal Balance of
      the
      Mortgage Loans (and properties acquired in respect thereof) at the time of
      purchase being less than or equal to 10% of the sum of (i) the aggregate
      principal balance of the Mortgage Loans as of the Cut-off Date and (ii) the
      Original Pre-Funded Amount.

     

    The
      recitals contained herein shall be taken as statements of the Depositor and
      neither the Trustee nor the Securities Administrator assume any responsibility
      for their correctness.

     

    Unless
      the certificate of authentication hereon has been executed by the Securities
      Administrator, by manual signature, this Certificate shall not be entitled
      to
      any benefit under the Agreement or be valid for any purpose.

     

    
      
        
        

      

      
        A-4-5

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the Securities Administrator has caused this Certificate to
      be
      duly executed.

    
      	 	 	 
	Dated:	 
	 	 
	 	
              WELLS
                FARGO BANK, N.A.

              as
                Securities Administrator

            
	 
 	 
 	 
 
	
            	By:  	
            
	 	
              

              Authorized
                Officer

            

    

     

    CERTIFICATE
      OF AUTHENTICATION

     

    This
      is
      one of the Class P Certificates referred to in the within-mentioned
      Agreement.

    
      	
            	 	 
	 	
              WELLS
                FARGO BANK, N.A.

              as
                Securities Administrator

            
	 
 	 
 	 
 
	
            	By:  	
            
	 	
              

              Authorized
                Officer

            

    

     

     

    
      
        
        

      

      
        A-4-6

        
          

        

      

      
        
        

      

    

    

    ABBREVIATIONS

     

    The
      following abbreviations, when used in the inscription on the face of this
      instrument, shall be construed as though they were written out in full according
      to applicable laws or regulations:

     

    
      	
              TEN
                COM -

            	
              as
                tenants in common

            	
              UNIF
                GIFT MIN ACT -

            	
                   Custodian      

              (Cust)
                (Minor)

              under
                Uniform Gifts 

              to
                Minors Act

            
	 	 	 	 
	
              TEN
                ENT -

            	
              as
                tenants by the entireties

            	 	
              ________________

              (State)

            
	 	 	 	 
	
              JT
                TEN -

            	
              as
                joint tenants with right 

              if
                survivorship and not as 

              tenants
                in common

            	 	 
	 	 	 	 
	
              Additional
                abbreviations may also be used though not in the above
                list.

            

    

    

    ASSIGNMENT

    
       

      
        	
                FOR
                  VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s)
                  

              
	
                unto

              	________________________________________________________________________________________________________________
	__________________________________________________________________________________________________________________________
	__________________________________________________________________________________________________________________________

      

      (Please
        print or typewrite name, address including postal zip code, and Taxpayer
        Identification Number of assignee) 

    

     

    a
      Percentage Interest equal to ____% evidenced by the within Asset Backed
      Pass-Through Certificate and hereby authorize(s) the registration of transfer
      of
      such interest to assignee on the Certificate Register of the Trust
      Fund.

     

    I
      (we)
      further direct the Securities Administrator to issue a new Certificate of a
      like
      Percentage Interest and Class to the above named assignee and deliver such
      Certificate to the following address: _____________________________

    
      	_________________________________________________________________________________________________________________________.

    

    
      

      
        	 	 	 
	
                Dated:

              	
              	
              
	 	
                

                Signature
                  by or on behalf of assignor

              

      

      
        

        
          	 	 	 
	
                	
                	
                
	 	
                  

                  Signature
                    Guaranteed

                

        

         

      

    

     

    
      
        
        

      

      
        A-4-7

        
          

        

      

      
        
        

      

    

     

    DISTRIBUTION
      INSTRUCTIONS

    The
      assignee should include the following for purposes of distribution:

    
      
        

        
          	
                  Distributions
                    shall be made, by wire transfer or otherwise, in immediately
                    available
                    

                
	
                  funds
                    to

                	 
	 
	
                  for
                    the account of

                	 
	
                  account
                    number

                	 	
                  or,
                    if mailed by check, to

                
	 
	
                  Applicable
                    statements should be mailed to

                	 
	 
	 
	
                  This
                    information is provided by

                	 
	
                  assignee
                    named above, or

                	 
	
                  its
                    agent.

                	 

        

      

       

    

    
      
        
        

      

      
        A-4-8

        
          

        

      

      
        
        

      

    

    EXHIBIT
      A-5

     

    FORM
      OF
      CLASS R CERTIFICATE

     

    THIS
      CERTIFICATE MAY NOT BE TRANSFERRED TO A NON-UNITED STATES
      PERSON.

     

    SOLELY
      FOR U.S. FEDERAL INCOME TAX PURPOSES,
      THIS CERTIFICATE REPRESENTS THE SOLE “RESIDUAL INTEREST” IN EACH “REAL ESTATE
      MORTGAGE INVESTMENT CONDUIT” (“REMIC”), AS THOSE TERMS ARE DEFINED,
      RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF 1986,
      AS
      AMENDED (THE “CODE”).

     

    ANY
      RESALE, TRANSFER OR OTHER DISPOSITION OF THIS CERTIFICATE MAY BE MADE ONLY
      IN
      ACCORDANCE WITH THE PROVISIONS OF SECTION 6.02 OF THE AGREEMENT REFERRED TO
      HEREIN.

     

    THIS
      CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT
      OF
      1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE RESOLD
      OR
      TRANSFERRED UNLESS IT IS REGISTERED PURSUANT TO SUCH ACT AND LAWS OR IS SOLD
      OR
      TRANSFERRED IN TRANSACTIONS THAT ARE EXEMPT FROM REGISTRATION UNDER SUCH ACT
      AND
      UNDER APPLICABLE STATE LAW AND IS TRANSFERRED IN ACCORDANCE WITH THE PROVISIONS
      OF SECTION 6.02 OF THE AGREEMENT.

     

    ANY
      RESALE, TRANSFER OR OTHER DISPOSITION OF THIS CERTIFICATE MAY BE MADE ONLY
      IF
      THE PROPOSED TRANSFEREE PROVIDES (I) AN AFFIDAVIT TO THE SECURITIES
      ADMINISTRATOR THAT (A) SUCH TRANSFEREE IS NOT (1) THE UNITED STATES OR ANY
      POSSESSION THEREOF, ANY STATE OR POLITICAL SUBDIVISION THEREOF, ANY FOREIGN
      GOVERNMENT, ANY INTERNATIONAL ORGANIZATION, OR ANY AGENCY OR INSTRUMENTALITY
      OF
      ANY OF THE FOREGOING, (2) ANY ORGANIZATION (OTHER THAN A COOPERATIVE DESCRIBED
      IN SECTION 521 OF THE CODE) THAT IS EXEMPT FROM THE TAX IMPOSED BY CHAPTER
      1 OF
      THE CODE UNLESS SUCH ORGANIZATION IS SUBJECT TO THE TAX IMPOSED BY SECTION
      511
      OF THE CODE, (3) ANY ORGANIZATION DESCRIBED IN SECTION 1381(a)(2)(C) OF THE
      CODE
      (ANY SUCH PERSON DESCRIBED IN THE FOREGOING CLAUSES (1), (2) OR (3) SHALL
      HEREINAFTER BE REFERRED TO AS A “DISQUALIFIED ORGANIZATION”) OR (4) AN AGENT OF
      A DISQUALIFIED ORGANIZATION AND (B) NO PURPOSE OF SUCH TRANSFER IS TO IMPEDE
      THE
      ASSESSMENT OR COLLECTION OF TAX, AND (II) SUCH TRANSFEREE SATISFIES CERTAIN
      ADDITIONAL CONDITIONS RELATING TO THE FINANCIAL CONDITION OF THE PROPOSED
      TRANSFEREE. NOTWITHSTANDING THE REGISTRATION IN THE CERTIFICATE REGISTER OF
      ANY
      TRANSFER, SALE OR OTHER DISPOSITION OF THIS CERTIFICATE TO A DISQUALIFIED
      ORGANIZATION OR AN AGENT OF A DISQUALIFIED ORGANIZATION, SUCH REGISTRATION
      SHALL
      BE DEEMED TO BE OF NO LEGAL FORCE OR EFFECT WHATSOEVER AND SUCH PERSON SHALL
      NOT
      BE DEEMED TO BE A CERTIFICATEHOLDER FOR ANY PURPOSE HEREUNDER, INCLUDING, BUT
      NOT LIMITED TO, THE RECEIPT OF DISTRIBUTIONS ON THIS CERTIFICATE. EACH HOLDER
      OF
      THIS CERTIFICATE BY ACCEPTANCE HEREOF SHALL BE DEEMED TO HAVE CONSENTED TO
      THE
      PROVISIONS OF THIS PARAGRAPH AND THE PROVISIONS OF SECTION 6.02(d) OF THE
      AGREEMENT REFERRED TO HEREIN. ANY PERSON THAT IS A DISQUALIFIED ORGANIZATION
      IS
      PROHIBITED FROM ACQUIRING BENEFICIAL OWNERSHIP OF THIS
      CERTIFICATE.

     

    
      
        
        

      

      
        A-5-1

        
          

        

      

      
        
        

      

    

     

    NO
      PERSON MAY ACQUIRE THIS CERTIFICATE DIRECTLY OR INDIRECTLY BY, ON BEHALF OF,
      OR
      WITH PLAN ASSETS OF AN EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT ARRANGEMENT
      THAT IS SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF
      1974, AS AMENDED, OR SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, UNLESS
      IT HAS PROVIDED THE OPINION OF COUNSEL REFERENCED IN SECTION 6.02(c) OF THE
      AGREEMENT REFERRED TO HEREIN.

     

    
      
        
        

      

      
        A-5-2

        
          

        

      

      
        
        

      

    

    

    
      	
              Series
                2007-HE4, Class R

            	 	
              Aggregate
                Percentage Interest of the Class R Certificates as of the Issue Date:
                100.00%

            
	 	 	 
	
              Date
                of Pooling and Servicing Agreement and
                Cut-off Date: April 1, 2007

            	 	
              Master
                Servicer: Wells Fargo Bank, N.A.

            
	 	 	 
	
              First
                Distribution Date: May 25, 2007

            	 	
              Trustee:
                HSBC Bank USA, National Association

            
	 	 	 
	
              No
                __

            	 	
              Issue
                Date: April 30, 2007

            

    

    

    ACE
      SECURITIES CORP. HOME EQUITY LOAN TRUST, SERIES 2007-HE4

    ASSET
      BACKED PASS-THROUGH CERTIFICATE

     

    evidencing
      a beneficial ownership interest in a Trust Fund (the “Trust Fund”) consisting
      primarily of a pool of conventional one- to four-family, first and second lien,
      fixed-rate and adjustable-rate mortgage loans (the “Mortgage Loans”) formed and
      sold by

     

    ACE
      SECURITIES CORP.

     

    THIS
      CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN ACE SECURITIES
      CORP., THE SPONSOR, THE MASTER SERVICER, THE SECURITIES ADMINISTRATOR, THE
      SERVICER, THE TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS
      CERTIFICATE NOR THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY
      OR
      INSTRUMENTALITY OF THE UNITED STATES.

     

    

    This
      certifies that _______________ is the registered owner of a Percentage Interest
      set forth above in that certain beneficial ownership interest evidenced by
      all
      of the Class R Certificates in REMIC III created pursuant to a Pooling and
      Servicing Agreement, dated as specified above (the “Agreement”), among ACE
      Securities Corp. as depositor (hereinafter called the “Depositor”, which term
      includes any successor entity under the Agreement), Wells Fargo Bank, N.A.
      as
      master servicer (the “Master Servicer”) and securities administrator (the
“Securities Administrator”), Ocwen Loan Servicing, LLC as a servicer (“Ocwen” or
      a “Servicer”), GMAC Mortgage, LLC as a servicer (“GMAC” or a “Servicer”) and
      HSBC Bank USA, National Association as trustee (the “Trustee”), a summary of
      certain of the pertinent provisions of which is set forth hereafter. To the
      extent not defined herein, the capitalized terms used herein have the meanings
      assigned in the Agreement. This Certificate is issued under and is subject
      to
      the terms, provisions and conditions of the Agreement, to which Agreement the
      Holder of this Certificate by virtue of the acceptance hereof assents and by
      which such Holder is bound.

     

    Pursuant
      to the terms of the Agreement, distributions will be made on the 25th day of
      each month or, if such 25th day is not a Business Day, the Business Day
      immediately following (a “Distribution Date”), commencing on the First
      Distribution Date specified above, to the Person in whose name this Certificate
      is registered on the last Business Day of the calendar month immediately
      preceding the month in which the related Distribution Date occurs (the “Record
      Date”), in an amount equal to the product of the Percentage Interest evidenced
      by this Certificate and the amount required to be distributed to the Holders
      of
      Class R Certificates on such Distribution Date pursuant to the
      Agreement.

     

    
      
        
        

      

      
        A-5-3

        
          

        

      

      
        
        

      

    

     

    All
      distributions to the Holder of this Certificate under the Agreement will be
      made
      or caused to be made by the Securities Administrator by wire transfer in
      immediately available funds to the account of the Person entitled thereto if
      such Person shall have so notified the Securities Administrator in writing
      at
      least five (5) Business Days prior to the Record Date immediately prior to
      such
      Distribution Date and is the registered owner of Class R Certificates, or
      otherwise by check mailed by first class mail to the address of the Person
      entitled thereto, as such name and address shall appear on the Certificate
      Register. Notwithstanding the above, the final distribution on this Certificate
      will be made after due notice by the Securities Administrator of the pendency
      of
      such distribution and only upon presentation and surrender of this Certificate
      at the office or agency appointed by the Securities Administrator for that
      purpose as provided in the Agreement.

     

    This
      Certificate is one of a duly authorized issue of Certificates designated as
      Asset Backed Pass-Through Certificates of the Series specified on the face
      hereof (herein called the “Certificates”) and representing the Percentage
      Interest in the Class of Certificates specified on the face hereof.

     

    The
      Certificates are limited in right of payment to certain collections and
      recoveries in respect of the Mortgage Loans, all as more specifically set forth
      herein and in the Agreement. As provided in the Agreement, withdrawals from
      the
      Collection Account and the Distribution Account may be made from time to time
      for purposes other than distributions to Certificateholders, such purposes
      including reimbursement of advances made, or certain expenses incurred, with
      respect to the Mortgage Loans.

     

    The
      Agreement permits, with certain exceptions therein provided, the amendment
      thereof and the modification of the rights and obligations of the Depositor,
      the
      Master Servicer, the Trustee, the Securities Administrator, each Servicer party
      thereto and the rights of the Certificateholders under the Agreement at any
      time
      by the Depositor, the Master Servicer, the Trustee, the Securities Administrator
      and each Servicer party thereto with the consent of the Swap Provider (with
      respect to matters affecting the Swap Agreement) and the Holders of Certificates
      entitled to at least 66% of the Voting Rights. Any such consent by the Holder
      of
      this Certificate shall be conclusive and binding on such Holder and upon all
      future Holders of this Certificate and of any Certificate issued upon the
      transfer hereof or in exchange herefor or in lieu hereof whether or not notation
      of such consent is made upon this Certificate. The Agreement also permits the
      amendment thereof, in certain limited circumstances, without the consent of
      the
      Holders of any of the Certificates.

     

    As
      provided in the Agreement and subject to certain limitations therein set forth,
      the transfer of this Certificate is registrable in the Certificate Register
      upon
      surrender of this Certificate for registration of transfer at the offices or
      agencies appointed by the Securities Administrator as provided in the Agreement,
      duly endorsed by, or accompanied by an assignment in the form below or other
      written instrument of transfer in form satisfactory to the Securities
      Administrator duly executed by, the Holder hereof or such Holder’s attorney duly
      authorized in writing, and thereupon one or more new Certificates of the same
      Class in authorized denominations evidencing the same aggregate Percentage
      Interest will be issued to the designated transferee or
      transferees.

     

    
      
        
        

      

      
        A-5-4

        
          

        

      

      
        
        

      

    

     

    The
      Certificates are issuable in fully registered form only without coupons in
      Classes and denominations representing Percentage Interests specified in the
      Agreement. As provided in the Agreement and subject to certain limitations
      therein set forth, Certificates are exchangeable for new Certificates of the
      same Class in authorized denominations evidencing the same aggregate Percentage
      Interest, as requested by the Holder surrendering the same.

     

    No
      transfer of this Certificate shall be made unless the transfer is made pursuant
      to an effective registration statement under the Securities Act of 1933, as
      amended (the “1933 Act”), and an effective registration or qualification under
      applicable state securities laws, or is made in a transaction that does not
      require such registration or qualification. In the event that such a transfer
      of
      this Certificate is to be made without registration or qualification, the
      Securities Administrator shall require receipt of (i) if such transfer is
      purportedly being made in reliance upon Rule 144A under the 1933 Act, written
      certifications from the Holder of the Certificate desiring to effect the
      transfer, and from such Holder’s prospective transferee, substantially in the
      forms attached to the Agreement as Exhibit B-1, (ii) if such transfer is
      purportedly being made in reliance upon Rule 501(a) under the 1933 Act, written
      certifications from the Holder of the Certificate desiring to effect the
      transfer and from such Holder’s prospective transferee, substantially in the
      form attached to the Agreement as Exhibit B-3, (iii) a transfer affidavit and
      agreement substantially in the form attached to the Agreement as Exhibit B-4
      and
      (iv) in all other cases, an Opinion of Counsel satisfactory to it that such
      transfer may be made without such registration or qualification (which Opinion
      of Counsel shall not be an expense of the Trust Fund or of the Depositor, the
      Trustee, the Master Servicer or the Securities Administrator in their respective
      capacities as such), together with copies of the written certification(s) of
      the
      Holder of the Certificate desiring to effect the transfer and/or such Holder’s
      prospective transferee upon which such Opinion of Counsel is based. None of
      the
      Depositor, the Trustee or the Securities Administrator is obligated to register
      or qualify the Class of Certificates specified on the face hereof under the
      1933
      Act or any other securities law or to take any action not otherwise required
      under the Agreement to permit the transfer of such Certificates without
      registration or qualification. Any Holder desiring to effect a transfer of
      this
      Certificate shall be required to indemnify the Trustee, the Depositor, the
      Master Servicer and the Securities Administrator against any liability that
      may
      result if the transfer is not so exempt or is not made in accordance with such
      federal and state laws.

     

    No
      transfer of this Certificate shall be made except in accordance with Section
      6.02 of the Agreement.

     

    Prior
      to
      registration of any transfer, sale or other disposition of this Certificate,
      the
      proposed transferee shall provide to the Securities Administrator (i) an
      affidavit to the effect that such transferee is any Person other than a
      Disqualified Organization or the agent (including a broker, nominee or
      middleman) of a Disqualified Organization, and (ii) a certificate that
      acknowledges that (A) the Class R Certificates have been designated as
      representing the beneficial ownership of the residual interests in each of
      REMIC
      I, REMIC II and REMIC III, (B) it will include in its income a pro
      rata
      share of
      the net income of the Trust Fund and that such income may be an “excess
      inclusion,” as defined in the Code, that, with certain exceptions, cannot be
      offset by other losses or benefits from any tax exemption, and (C) it expects
      to
      have the financial means to satisfy all of its tax obligations including those
      relating to holding the Class R Certificates. Notwithstanding the registration
      in the Certificate Register of any transfer, sale or other disposition of this
      Certificate to a Disqualified Organization or an agent (including a broker,
      nominee or middleman) of a Disqualified Organization, such registration shall
      be
      deemed to be of no legal force or effect whatsoever and such Person shall not
      be
      deemed to be a Certificateholder for any purpose, including, but not limited
      to,
      the receipt of distributions in respect of this Certificate.

     

    
      
        
        

      

      
        A-5-5

        
          

        

      

      
        
        

      

    

     

    The
      Holder of this Certificate, by its acceptance hereof, shall be deemed to have
      consented to the provisions of Section 6.02 of the Agreement and to any
      amendment of the Agreement deemed necessary by counsel of the Depositor to
      ensure that the transfer of this Certificate to any Person other than a
      Permitted Transferee or any other Person will not cause any portion of the
      Trust
      Fund to cease to qualify as a REMIC or cause the imposition of a tax upon any
      REMIC.

     

    No
      service charge will be made for any such registration of transfer or exchange
      of
      Certificates, but the Securities Administrator may require payment of a sum
      sufficient to cover any tax or other governmental charge that may be imposed
      in
      connection with any transfer or exchange of Certificates.

     

    The
      Depositor, the Master Servicer, the Trustee, the Securities Administrator,
      the
      Servicer and any agent of the Depositor, the Master Servicer, the Trustee,
      the
      Securities Administrator or the Servicer may treat the Person in whose name
      this
      Certificate is registered as the owner hereof for all purposes, and none of
      the
      Depositor, the Master Servicer, the Trustee, the Securities Administrator,
      the
      Servicer nor any such agent shall be affected by notice to the
      contrary.

     

    The
      obligations created by the Agreement and the Trust Fund created thereby shall
      terminate upon payment to the Certificateholders of all amounts held by the
      Securities Administrator and required to be paid to them pursuant to the
      Agreement following the earlier of (i) the final payment or other liquidation
      (or any advance with respect thereto) of the last Mortgage Loan remaining in
      REMIC I and (ii) the purchase by the party designated in the Agreement at a
      price determined as provided in the Agreement from REMIC I of all the Mortgage
      Loans and all property acquired in respect of such Mortgage Loans. The Agreement
      permits, but does not require, the party designated in the Agreement to purchase
      from REMIC I all the Mortgage Loans and all property acquired in respect of
      any
      Mortgage Loan at a price determined as provided in the Agreement. The exercise
      of such right will effect early retirement of the Certificates; however, such
      right to purchase is subject to the aggregate Scheduled Principal Balance of
      the
      Mortgage Loans (and properties acquired in respect thereof) at the time of
      purchase being less than or equal to 10% of the sum of (i) the aggregate
      principal balance of the Mortgage Loans as of the Cut-off Date and (ii) the
      Original Pre-Funded Amount.

     

    
      
        
        

      

      
        A-5-6

        
          

        

      

      
        
        

      

    

     

    The
      recitals contained herein shall be taken as statements of the Depositor and
      neither the Trustee nor the Securities Administrator assume any responsibility
      for their correctness.

     

    Unless
      the certificate of authentication hereon has been executed by the Securities
      Administrator, by manual signature, this Certificate shall not be entitled
      to
      any benefit under the Agreement or be valid for any purpose.

     

    
      
        
        

      

      
        A-5-7

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the Securities Administrator has caused this Certificate to
      be
      duly executed.

    
      	
            	 	 
	Dated:	 
	 	 
	 	
              WELLS
                FARGO BANK, N.A.

              as
                Securities Administrator

            
	 
 	 
 	 
 
	
            	By:  	
            
	 	
              

              Authorized
                Officer

            

    

     

    CERTIFICATE
      OF AUTHENTICATION

     

    This
      is
      one of the Class R Certificates referred to in the within-mentioned
      Agreement.

    
      	
            	 	 
	 	
              WELLS
                FARGO BANK, N.A.

              as
                Securities Administrator

            
	 
 	 
 	 
 
	
            	By:  	
            
	 	
              

              Authorized
                Signatory

            

    

     

    

    
      
        
        

      

      
        A-5-8

        
          

        

      

      
        
        

      

    

    ABBREVIATIONS

     

    The
      following abbreviations, when used in the inscription on the face of this
      instrument, shall be construed as though they were written out in full according
      to applicable laws or regulations:

     

    
      	
              TEN
                COM -

            	
              as
                tenants in common

            	
              UNIF
                GIFT MIN ACT -

            	
                   Custodian      

              (Cust)
                (Minor)

              under
                Uniform Gifts 

              to
                Minors Act

            
	 	 	 	 
	
              TEN
                ENT -

            	
              as
                tenants by the entireties

            	 	
              ________________

              (State)

            
	 	 	 	 
	
              JT
                TEN -

            	
              as
                joint tenants with right 

              if
                survivorship and not as 

              tenants
                in common

            	 	 
	 	 	 	 
	
              Additional
                abbreviations may also be used though not in the above
                list.

            

    

    

    ASSIGNMENT

     

    
      	
              FOR
                VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s)
                

            
	
              unto

            	________________________________________________________________________________________________________________
	__________________________________________________________________________________________________________________________
	__________________________________________________________________________________________________________________________

    

    (Please
      print or typewrite name, address including postal zip code, and Taxpayer
      Identification Number of assignee)

     

    a
      Percentage Interest equal to _____% evidenced by the within Asset Backed
      Pass-Through Certificate and hereby authorize(s) the registration of transfer
      of
      such interest to assignee on the Certificate Register of the Trust
      Fund.

     

    I
      (we)
      further direct the Securities Administrator to issue a new Certificate of a
      like
      Percentage Interest and Class to the above named assignee and deliver such
      Certificate to the following address: _____________________________

    
      	_________________________________________________________________________________________________________________________ .

    

    
      
        

        
          	 	 	 
	
                  Dated:

                	
                	
                
	 	
                  

                  Signature
                    by or on behalf of assignor

                

        

        
          

          
            	 	 	 
	
                  	
                  	
                  
	 	
                    

                    Signature
                      Guaranteed

                  

          

           

        

      

    
      
        
        

      

      
        A-5-9

        
          

        

      

      
        
        

      

    

     

    DISTRIBUTION
      INSTRUCTIONS

     

    The
      assignee should include the following for purposes of distribution:

    
      
         

        
          Distributions
            shall be made, by wire transfer or otherwise, in immediately available
funds
            to
            ___________________________

          _______________________________________________________________________________________________________

          
            for
              the
              account of
              _________________________________________________________________________________________

            
              account
                number
                __________________________________________________________________________________or,
                if
                mailed by check, to
_______________________________________________________________________________________________________

              
                Applicable
                  statements should be mailed to
                  _____________________________________________________________________

              

              ___________________________________________________________________________________________

               

              
                This
                  information is provided by
                  _________________________________________________________________________

                
                  assignee
                    named above, or
                    ____________________________________________________________________________________

                  
                    its
                      agent. 

                  

                

              

            

          

        

      

    

    

    
      
        
        

      

      
        A-5-10

        
          

        

      

      
        
        

      

    

    EXHIBIT
      B-1

    FORM
      OF
      TRANSFEROR REPRESENTATION LETTER

     

    [Date]

     

    Wells
      Fargo Bank, N.A.

    Sixth
      Street and Marquette Avenue

    Minneapolis,
      Minnesota 55479

    Attention:
      Corporate Trust ACE 2007-HE4

     

    
      	
              Re:

            	
              ACE
                Securities Corp. Home Equity Loan Trust, Series 2007-HE4 Asset Backed
                Pass-Through Certificates

              [Class
                CE-1,] [Class CE-2,] [Class P] and [Class R]
                Certificates

            

    

    

    Ladies
      and Gentlemen:

     

    In
      connection with the transfer by ______________________ (the “Transferor”) to
      ___________________ (the “Transferee”) of the captioned asset backed
      pass-through certificates (the “Certificates”), the Transferor hereby certifies
      as follows:

     

    Neither
      the Transferor nor anyone acting on its behalf has (a) offered, pledged, sold,
      disposed of or otherwise transferred any Certificate, any interest in any
      Certificate or any other similar security to any person in any manner, (b)
      has
      solicited any offer to buy or to accept a pledge, disposition or other transfer
      of any Certificate, any interest in any Certificate or any other similar
      security from any person in any manner, (c) has otherwise approached or
      negotiated with respect to any Certificate, any interest in any Certificate
      or
      any other similar security with any person in any manner, (d) has made any
      general solicitation by means of general advertising or in any other manner,
      (e)
      has taken any other action, that (in the case of each of subclauses (a) through
      (e) above) would constitute a distribution of the Certificates under the
      Securities Act of 1933, as amended (the “1933 Act”), or would render the
      disposition of any Certificate a violation of Section 5 of the 1933 Act or
      any
      state securities law or would require registration or qualification pursuant
      thereto. The Transferor will not act, nor has it authorized nor will it
      authorize any person to act, in any manner set forth in the foregoing sentence
      with respect to any Certificate. The Transferor will not sell or otherwise
      transfer any of the Certificates, except in compliance with the provisions
      of
      that certain Pooling and Servicing Agreement, dated as of April 1, 2007, among
      ACE Securities Corp. as Depositor, Wells Fargo Bank, N.A. as Master Servicer
      and
      Securities Administrator, Ocwen Loan Servicing, LLC as a servicer (“Ocwen”),
      GMAC Mortgage, LLC as a servicer (“GMAC”) and HSBC Bank USA, National
      Association as trustee (the “Trustee”) (the “Pooling and Servicing Agreement”),
      pursuant to which Pooling and Servicing Agreement the Certificates were
      issued.

     

    
      
        
        

      

      
        B-1-1

        
          

        

      

      
        
        

      

    

    Capitalized
      terms used but not defined herein shall have the meanings assigned thereto
      in
      the Pooling and Servicing Agreement.

    
      	 	 	 
	 	
              Very
                truly yours,

            
	 	 
	 	
              [Transferor]

            
	 
 	 
 	 
 
	
            	By:  	
            
	 	
              

              Name:

            
	 	
              Title:

            

    

     

     

    
      
        
        

      

      
        B-1-2

        
          

        

      

      
        
        

      

    

    FORM
      OF
      TRANSFEREE REPRESENTATION LETTER

     

    [Date]

     

    Wells
      Fargo Bank, N.A.

    Sixth
      Street and Marquette Avenue

    Minneapolis,
      Minnesota 55479

    Attention:
      Corporate Trust ACE 2007-HE4

     

    
      	
              Re:

            	
              ACE
                Securities Corp. Home Equity Loan Trust, Series 2007-HE4

              Asset
                Backed Pass-Through Certificates 

              [Class
                CE-1,] [Class CE-2,] [Class P] and [Class R]
                Certificates

            

    

     

    Ladies
      and Gentlemen:

     

    In
      connection with the purchase from ______________________________ (the
“Transferor”) on the date hereof of the captioned asset backed pass-through
      certificates (the “Certificates”), (the “Transferee”) hereby certifies as
      follows:

     

    1. The
      Transferee is a “qualified institutional buyer” as that term is defined in Rule
      144A (“Rule 144A”) under the Securities Act of 1933 (the “1933 Act”) and has
      completed either of the forms of certification to that effect attached hereto
      as
      Annex 1 or Annex 2. The Transferee is aware that the sale to it is being made
      in
      reliance on Rule 144A. The Transferee is acquiring the Certificates for its
      own
      account or for the account of a qualified institutional buyer, and understands
      that such Certificate may be resold, pledged or transferred only (i) to a person
      reasonably believed to be a qualified institutional buyer that purchases for
      its
      own account or for the account of a qualified institutional buyer to whom notice
      is given that the resale, pledge or transfer is being made in reliance on Rule
      144A, or (ii) pursuant to another exemption from registration under the 1933
      Act.

     

    2. The
      Transferee has been furnished with all information regarding (a) the
      Certificates and distributions thereon, (b) the nature, performance and
      servicing of the Mortgage Loans, (c) the Pooling and Servicing Agreement
      referred to below, and (d) any credit enhancement mechanism associated with
      the
      Certificates, that it has requested.

     

    3. The
      Transferee: (a) is not an employee benefit plan or other plan subject to the
      prohibited transaction provisions of the Employee Retirement Income Security
      Act
      of 1974, as amended (“ERISA”), or Section 4975 of the Internal Revenue Code of
      1986, as amended (the “Code”) (each, a “Plan”), or any other person (including
      an investment manager, a named fiduciary or a trustee of any Plan) acting,
      directly or indirectly, on behalf of or purchasing any Certificate with “plan
      assets” of any Plan within the meaning of the Department of Labor (“DOL”)
      regulation at 29 C.F.R. § 2510.3-101 or (b) has provided the Securities
      Administrator with an Opinion of Counsel on which the Trustee, the Depositor,
      the Master Servicer, the Securities Administrator and the Servicers may rely,
      acceptable to and in form and substance satisfactory to the Securities
      Administrator to the effect that the purchase of Certificates is permissible
      under applicable law, will not constitute or result in any non-exempt prohibited
      transaction under ERISA or Section 4975 of the Code and will not subject the
      Trust Fund, the Trustee, the Depositor, the Master Servicer, the Securities
      Administrator or the Servicers to any obligation or liability (including
      obligations or liabilities under ERISA or Section 4975 of the Code) in addition
      to those undertaken in the Pooling and Servicing Agreement.

     

    
      
        
        

      

      
        B-1-3

        
          

        

      

      
        
        

      

    

    

    In
      addition, the Transferee hereby certifies, represents and warrants to, and
      covenants with, the Depositor, the Trustee, the Securities Administrator, the
      Master Servicer and the Servicers that the Transferee will not transfer such
      Certificates to any Plan or person unless such Plan or person meets the
      requirements set forth in paragraph 3 above.

     

    All
      capitalized terms used but not otherwise defined herein have the respective
      meanings assigned thereto in the Pooling and Servicing Agreement, dated as
      of
      April 1, 2007, among ACE Securities Corp. as Depositor, Wells Fargo Bank, N.A.
      as Master Servicer and Securities Administrator, Ocwen Loan Servicing, LLC
      as a
      Servicer (“Ocwen”), GMAC Mortgage, LLC as a Servicer (“GMAC”) and HSBC Bank USA,
      National Association as Trustee, pursuant to which the Certificates were
      issued.

    
      	 	 	 
	 	
              [TRANSFEREE]

            
	 
 	 
 	 
 
	
            	By:  	
            
	 	
              

              Name:

            
	 	
              Title:

            

    

     

     

    
      
        
        

      

      
        B-1-4

        
          

        

      

      
        
        

      

    

    ANNEX
      1 TO EXHIBIT B-1

     

    QUALIFIED
      INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

     

    [For
      Transferees Other Than Registered Investment Companies]

     

    The
      undersigned hereby certifies as follows to [name of Transferor] (the
“Transferor”) and Wells Fargo Bank, N.A., as Securities Administrator, with
      respect to the asset backed pass-through certificates (the “Certificates”)
      described in the Transferee Certificate to which this certification relates
      and
      to which this certification is an Annex:

     

    1. As
      indicated below, the undersigned is the President, Chief Financial Officer,
      Senior Vice President or other executive officer of the entity purchasing the
      Certificates (the “Transferee”).

     

    2. In
      connection with purchases by the Transferee, the Transferee is a “qualified
      institutional buyer” as that term is defined in Rule 144A under the Securities
      Act of 1933 (“Rule 144A”) because (i) the Transferee owned and/or invested on a
      discretionary basis $________________1 
      in
      securities (except for the excluded securities referred to below) as of the
      end
      of the Transferee’s most recent fiscal year (such amount being calculated in
      accordance with Rule 144A) and (ii) the Transferee satisfies the criteria in
      the
      category marked below.

     

    
      	
              ___

            	
              Corporation,
                etc.
                The Transferee is a corporation (other than a bank, savings and loan
                association or similar institution), Massachusetts or similar business
                trust, partnership, or any organization described in Section 501(c)(3)
                of
                the Internal Revenue Code of 1986.

            
	 	 
	
              ___

            	
              Bank.
                The Transferee (a) is a national bank or banking institution organized
                under the laws of any State, territory or the District of Columbia,
                the
                business of which is substantially confined to banking and is supervised
                by the State or territorial banking commission or similar official
                or is a
                foreign bank or equivalent institution, and (b) has an audited net
                worth
                of at least $25,000,000 as demonstrated in its latest annual financial
                statements, a
                copy of which is attached hereto.

            
	 	 
	
              ___

            	
              Savings
                and Loan.
                The Transferee (a) is a savings and loan association, building and
                loan
                association, cooperative bank, homestead association or similar
                institution, which is supervised and examined by a State or Federal
                authority having supervision over any such institutions or is a foreign
                savings and loan association or equivalent institution and (b) has
                an
                audited net worth of at least $25,000,000 as demonstrated in its
                latest
                annual financial statements, a
                copy of which is attached hereto.

            

    

     

    
      

    

    
      
        	1	
                Transferee
                  must own and/or invest on a discretionary basis at least $100,000,000
                  in
                  securities unless Transferee is a dealer, and, in that case, Transferee
                  must own and/or invest on a discretionary basis at least $10,000,000
                  in
                  securities.

              

      

    

     

    
      
        
        

      

      
        B-1-5

        
          

        

      

      
        
        

      

    

     

     

    
      	
              ___

            	
              Broker-dealer.
                The Transferee is a dealer registered pursuant to Section 15 of the
                Securities Exchange Act of 1934.

            
	 	 
	
              ___

            	
              Insurance
                Company.
                The Transferee is an insurance company whose primary and predominant
                business activity is the writing of insurance or the reinsuring of
                risks
                underwritten by insurance companies and which is subject to supervision
                by
                the insurance commissioner or a similar official or agency of a State,
                territory or the District of Columbia.

            
	 	 
	
              ___

            	
              State
                or Local Plan.
                The Transferee is a plan established and maintained by a State, its
                political subdivisions, or any agency or instrumentality of the State
                or
                its political subdivisions, for the benefit of its
                employees.

            
	 	 
	
              ___

            	
              ERISA
                Plan.
                The Transferee is an employee benefit plan within the meaning of
                Title I
                of the Employee Retirement Income Security Act of 1974, as
                amended.

            
	 	 
	
              ___

            	
              Investment
                Advisor
                The Transferee is an investment advisor registered under the Investment
                Advisers Act of 1940.

            

    

     

    3. The
      term
“securities”
as
      used
      herein does
      not include
      (i)
      securities of issuers that are affiliated with the Transferee, (ii) securities
      that are part of an unsold allotment to or subscription by the Transferee,
      if
      the Transferee is a dealer, (iii) securities issued or guaranteed by the U.S.
      or
      any instrumentality thereof, (iv) bank deposit notes and certificates of
      deposit, (v) loan participations, (vi) repurchase agreements, (vii)
      securities owned but subject to a repurchase agreement and (viii) currency,
      interest rate and commodity swaps.

     

    4. For
      purposes of determining the aggregate amount of securities owned and/or invested
      on a discretionary basis by the Transferee, the Transferee used the cost of
      such
      securities to the Transferee and did not include any of the securities referred
      to in the preceding paragraph. Further, in determining such aggregate amount,
      the Transferee may have included securities owned by subsidiaries of the
      Transferee, but only if such subsidiaries are consolidated with the Transferee
      in its financial statements prepared in accordance with generally accepted
      accounting principles and if the investments of such subsidiaries are managed
      under the Transferee’s direction. However, such securities were not included if
      the Transferee is a majority-owned, consolidated subsidiary of another
      enterprise and the Transferee is not itself a reporting company under the
      Securities Exchange Act of 1934.

     

    5. The
      Transferee acknowledges that it is familiar with Rule 144A and understands
      that
      the Transferor and other parties related to the Certificates are relying and
      will continue to rely on the statements made herein because one or more sales
      to
      the Transferee may be in reliance on Rule 144A.

     

    
      	
              o

            	
              
                o

              

            	
              Will
                the Transferee be purchasing the Certificates

            
	
              Yes

            	
              No

            	
              only
                for the Transferee’s own account?

            

    

     

     

    
      
        
        

      

      
        B-1-6

        
          

        

      

      
        
        

      

    

     

    6. If
      the
      answer to the foregoing question is “no”, the Transferee agrees that, in
      connection with any purchase of securities sold to the Transferee for the
      account of a third party (including any separate account) in reliance on Rule
      144A, the Transferee will only purchase for the account of a third party that
      at
      the time is a “qualified institutional buyer” within the meaning of Rule 144A.
      In addition, the Transferee agrees that the Transferee will not purchase
      securities for a third party unless the Transferee has obtained a current
      representation letter from such third party or taken other appropriate steps
      contemplated by Rule 144A to conclude that such third party independently meets
      the definition of “qualified institutional buyer” set forth in Rule
      144A.

     

    7. The
      Transferee will notify each of the parties to which this certification is made
      of any changes in the information and conclusions herein. Until such notice
      is
      given, the Transferee’s purchase of the Certificates will constitute a
      reaffirmation of this certification as of the date of such purchase. In
      addition, if the Transferee is a bank or savings and loan as provided above,
      the
      Transferee agrees that it will furnish to such parties updated annual financial
      statements promptly after they become available.

    
      	 	 	 
	Dated:	 
	 	 
	 	
              

              Print
                Name of Transferee

            
	 
 	 
 	 
 
	
            	By:  	
            
	 	
              

              Name:

            
	 	
              Title:

            

    

     

     

    
      
        
        

      

      
        B-1-7

        
          

        

      

      
        
        

      

    

    ANNEX
      2 TO EXHIBIT B-1

     

    QUALIFIED
      INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

     

    [For
      Transferees That Are Registered Investment Companies]

     

    The
      undersigned hereby certifies as follows to [name of Transferor] (the
“Transferor”) and Wells Fargo Bank, N.A., as Securities Administrator, with
      respect to the asset backed pass-through certificates (the “Certificates”)
      described in the Transferee Certificate to which this certification relates
      and
      to which this certification is an Annex:

     

    1. As
      indicated below, the undersigned is the President, Chief Financial Officer
      or
      Senior Vice President of the entity purchasing the Certificates (the
“Transferee”) or, if the Transferee is a “qualified institutional buyer” as that
      term is defined in Rule 144A under the Securities Act of 1933 (“Rule 144A”)
      because the Transferee is part of a Family of Investment Companies (as defined
      below), is such an officer of the investment adviser (the
“Adviser”).

     

    2. In
      connection with purchases by the Transferee, the Transferee is a “qualified
      institutional buyer” as defined in Rule 144A because (i) the Transferee is an
      investment company registered under the Investment Company Act of 1940, and
      (ii)
      as marked below, the Transferee alone, or the Transferee’s Family of Investment
      Companies, owned at least $100,000,000 in securities (other than the excluded
      securities referred to below) as of the end of the Transferee’s most recent
      fiscal year. For purposes of determining the amount of securities owned by
      the
      Transferee or the Transferee’s Family of Investment Companies, the cost of such
      securities was used.

     

    
      	
              ___

            	
              The
                Transferee owned $________________________ in securities (other than
                the
                excluded securities referred to below) as of the end of the Transferee’s
                most recent fiscal year (such amount being calculated in accordance
                with
                Rule 144A).

            
	 	 
	
              ___

            	
              The
                Transferee is part of a Family of Investment Companies which owned
                in the
                aggregate $_______________ in securities (other than the excluded
                securities referred to below) as of the end of the Transferee’s most
                recent fiscal year (such amount being calculated in accordance with
                Rule
                144A).

            

    

     

    3. The
      term
“Family
      of Investment Companies”
as
      used
      herein means two or more registered investment companies (or series thereof)
      that have the same investment adviser or investment advisers that are affiliated
      (by virtue of being majority owned subsidiaries of the same parent or because
      one investment adviser is a majority owned subsidiary of the
      other).

     

    4. The
      term
“securities”
as
      used
      herein does not include (i) securities of issuers that are affiliated with
      the
      Transferee or are part of the Transferee’s Family of Investment Companies, (ii)
      securities issued or guaranteed by the U.S. or any instrumentality thereof,
      (iii) bank deposit notes and certificates of deposit, (iv) loan participations,
      (v) repurchase agreements, (vi) securities owned but subject to a
      repurchase agreement and (vii) currency, interest rate and commodity
      swaps.

     

    
      
        
        

      

      
        B-1-8

        
          

        

      

      
        
        

      

    

     

    5. The
      Transferee is familiar with Rule 144A and understands that the parties to which
      this certification is being made are relying and will continue to rely on the
      statements made herein because one or more sales to the Transferee will be
      in
      reliance on Rule 144A. In addition, the Transferee will only purchase for the
      Transferee’s own account.

     

    6. The
      undersigned will notify the parties to which this certification is made of
      any
      changes in the information and conclusions herein. Until such notice, the
      Transferee’s purchase of the Certificates will constitute a reaffirmation of
      this certification by the undersigned as of the date of such
      purchase. 

    
      
        	 	 	 
	Dated:	 
	 	 
	 	
                

                Print
                  Name of Transferee or Advisor

              
	 
 	 
 	 
 
	
              	By:  	
              
	 	
                

                Name:

              
	 	
                Title:

              

      

    

     

    
      
        	 	 	 
	 	
                IF
                  AN ADVISER:

              
	 	 
	 	 
	 	
                

                Print
                  Name of Transferee

              
	
              	        	 

      

    

     

     

    
      
        
        

      

      
        B-1-9

        
          

        

      

      
        
        

      

    

     

    FORM
      OF
      TRANSFEREE REPRESENTATION LETTER

     

    The
      undersigned hereby certifies on behalf of the purchaser named below (the
“Purchaser”) as follows:

     

    1. I
      am an
      executive officer of the Purchaser.

     

    2. The
      Purchaser is a “qualified institutional buyer”, as defined in Rule 144A, (“Rule
      144A”) under the Securities Act of 1933, as amended.

     

    3. As
      of the
      date specified below (which is not earlier than the last day of the Purchaser’s
      most recent fiscal year), the amount of “securities”, computed for purposes of
      Rule 144A, owned and invested on a discretionary basis by the Purchaser was
      in
      excess of $100,000,000.

    
       

      Name
        of
        Purchaser
        _________________________________________________________________________________

    

     

    
      By:
        (Signature)
        ____________________________________________________________________________________

       

      
        Name
          of
          Signatory
          _________________________________________________________________________________

         

        
          Title
            ____________________________________________________________________________________________

           

          
            Date
              of
              this certificate
              _______________________________________________________________________________

             

            
              Date
                of
                information provided in paragraph 3
                ______________________________________________________________

            

          

        

      

       

    

     

    
      
        
        

      

      
        B-1-10

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      B-2

     

    FORM
      OF
      REGULATION S TRANSFER CERTIFICATE

     

    [Date]

     

    Wells
      Fargo Bank, N.A.

    Sixth
      Street and Marquette Avenue

    Minneapolis,
      Minnesota 55479

    Attention:
      Corporate Trust ACE 2007-HE4

     

    
      	
              Re:

            	
              ACE
                Securities Corp. Home Equity Loan Trust, Series 2007-HE4 Asset Backed
                Pass-Through Certificates, Class CE-1 Certificates and/or Class CE-2
                Certificates and/or Class P
                Certificates     

            

    

     

    Ladies
      and Gentlemen:

     

    Reference
      is hereby made to the Pooling and Servicing Agreement (the “Agreement”), dated
      as of April 1, 2007, among ACE Securities Corp. (the “Depositor”), Wells Fargo
      Bank, N.A., as master servicer (the “Master Servicer”) and securities
      administrator (the “Securities Administrator”), Ocwen Loan Servicing, LLC, as a
      servicer, GMAC Mortgage, LLC, as a servicer, and HSBC Bank USA, National
      Association, as trustee (the “Trustee”). Capitalized terms used herein but not
      defined herein shall have the meanings assigned thereto in the
      Agreement.

     

    This
      letter relates to U.S. $[__________] Certificate Principal Balance of Class
      [CE-1][CE-2][P] Certificates (the “Certificates”) which are held in the name of
      [name of transferor] (the “Transferor”) to effect the transfer of the
      Certificates to a person who wishes to take delivery thereof in the form of
      an
      equivalent beneficial interest [name of transferee] (the
“Transferee”).

     

    In
      connection with such request, the Transferor hereby certifies that such transfer
      has been effected in accordance with the transfer restrictions set forth in
      the
      Agreement relating to the Certificates and that the following additional
      requirements (if applicable) were satisfied:

     

    (a) the
      offer
      of the Certificates was not made to a person in the United States;

     

    (b) at
      the
      time the buy order was originated, the Transferee was outside the United States
      or the Transferor and any person acting on its behalf reasonably believed that
      the Transferee was outside the United States;

     

    (c) no
      directed selling efforts were made in contravention of the requirements of
      Rule
      903(b) or 904(b) of Regulation S, as applicable;

     

    (d) the
      transfer or exchange is not part of a plan or scheme to evade the registration
      requirements of the Securities Act;

     

    
      
        
        

      

      
        B-2-1

        
          

        

      

      
        
        

      

    

     

    (e) the
      Transferee is not a U.S. Person, as defined in Regulation S under the Securities
      Act;

     

    (f) the
      transfer was made in accordance with the applicable provisions of Rule 903(b)(2)
      or (3) or Rule 904(b)(1), as the case may be; and

     

    (g) the
      Transferee understands that the Certificates have not been and will not be
      registered under the Securities Act, that any offers, sales or deliveries of
      the
      Certificates purchased by the Transferee in the United States or to U.S. persons
      prior to the date that is 40 days after the later of (i) the commencement of
      the
      offering of the Certificates and (ii) the Closing Date, may constitute a
      violation of United States law, and that (x) distributions of principal and
      interest and (y) the exchange of beneficial interests in a Temporary Regulation
      S Global Certificate for beneficial interests in the related Permanent
      Regulation S Global Certificate, in each case, will be made in respect of such
      Certificates only following the delivery by the Holder of a certification of
      non-U.S. beneficial ownership, at the times and in the manner set forth in
      the
      Agreement.

    
 

    
      
        
        

      

      
        B-2-2

        
          

        

      

      
        
        

      

    

     

    You
      are
      entitled to rely upon this letter and are irrevocably authorized to produce
      this
      letter or a copy hereof to any interested party in any administrative or legal
      proceedings or official inquiry with respect to the matters covered
      hereby.

     

    
      	 	 	 
	 	
              [Name
                of Transferor]

            
	 
 	 
 	 
 
	 	By:  	 
	 	
              

              Name:

            
	 	Title: 

    

     

    
      
        
        

      

      
        B-2-3

        
          

        

      

      
        
        

      

       

    

    EXHIBIT
      B-3

     

    FORM
      OF
      TRANSFEROR REPRESENTATION LETTER

     

    ____________,
      20__

    

    Wells
      Fargo Bank, N.A.

    Sixth
      Street and Marquette Avenue

    Minneapolis,
      Minnesota 55479

    Attention:
      Corporate Trust ACE 2007-HE4

     

    
      	
              Re:

            	
              ACE
                Securities Corp. Home Equity Loan Trust, Series 2007-HE4 

              Asset
                Backed Pass-Through Certificates, 

              [Class
                CE-1,] [CE-2] [Class P] and [Class R]
                Certificates

            

    

     

    Ladies
      and Gentlemen:

     

    In
      connection with the transfer by ________________ (the “Transferor”) to
      __________________________ (the “Transferee”) of the captioned asset backed
      pass-through certificates (the “Certificates”), the Transferor hereby certifies
      as follows:

     

    Neither
      the Transferor nor anyone acting on its behalf has (a) offered, pledged, sold,
      disposed of or otherwise transferred any Certificate, any interest in any
      Certificate or any other similar security to any person in any manner, (b)
      has
      solicited any offer to buy or to accept a pledge, disposition or other transfer
      of any Certificate, any interest in any Certificate or any other similar
      security from any person in any manner, (c) has otherwise approached or
      negotiated with respect to any Certificate, any interest in any Certificate
      or
      any other similar security with any person in any manner, (d) has made any
      general solicitation by means of general advertising or in any other manner,
      or
      (e) has taken any other action, that (as to any of (a) through (e) above) would
      constitute a distribution of the Certificates under the Securities Act of 1933
      (the “Act’), that would render the disposition of any Certificate a violation of
      Section 5 of the Act or any state securities law, or that would require
      registration or qualification pursuant thereto. The Transferor will not act,
      in
      any manner set forth in the foregoing sentence with respect to any Certificate.
      The Seller has not and will not sell or otherwise transfer any of the
      Certificates, except in compliance with the provisions of the Pooling and
      Servicing Agreement, dated as of April 1, 2007, among ACE Securities Corp.,
      Wells Fargo Bank, N.A., Ocwen Loan Servicing, LLC, GMAC Mortgage, LLC and HSBC
      Bank USA, National Association.

     

    
      	 	 	 
	 	 Very
              truly yours,
	 	 
	 	 
	 	 
	 	
              

              (Transferor)

            
	 	  
	 
 	 
 	 
 
	 	By:  	
            
	 	
              

              Name:

            
	 	Title :

    

     

    
      
        
        

      

      
        B-3-1

        
          

        

      

      
        
        

      

    

     

    FORM
      OF
      TRANSFEREE LETTER

     

    _______________,
      20__

     

    Wells
      Fargo Bank, N.A.

    Sixth
      Street and Marquette Avenue

    Minneapolis,
      Minnesota 55479

    Attention:
      Corporate Trust ACE 2007-HE4

     

    
      	
              Re:

            	
              ACE
                Securities Corp. Home Equity Loan Trust, Series 2007-HE4 

              Asset
                Backed Pass-Through Certificates, 

              [Class
                CE-1,] [Class CE-2, [Class P] and [Class R]
                Certificates

            

    

     

    Ladies
      and Gentlemen:

     

    In
      connection with the transfer by ______________________ (the “Transferor”) to
      __________________________ (the “Transferee”) of the captioned asset backed
      pass-through certificates (the “Certificates”), the Transferee hereby certifies
      as follows:

     

    1. The
      Transferee understands that (a) the Certificates have not been and will not
      be
      registered or qualified under the Securities Act of 1933, as amended (the “Act”)
      or any state securities law, (b) ACE Securities Corp. (the “Depositor”)is not
      required to so register or qualify the Certificates, (c) the Certificates may
      be
      resold only if registered and qualified pursuant to the provisions of the Act
      or
      any state securities law, or if an exemption from such registration and
      qualification is available, (d) the Pooling and Servicing Agreement, dated
      as of
      April 1, 2007, among the Depositor, as depositor, Wells Fargo Bank, N.A., as
      master servicer (the “Master Servicer”) and securities administrator (the
“Securities Administrator”), Ocwen Loan Servicing, LLC, as a servicer (“Ocwen”),
      GMAC Mortgage, LLC, as a servicer (“GMAC”) and HSBC Bank USA, National
      Association, as trustee (the “Trustee”) contains restrictions regarding the
      transfer of the Certificates and (e) the Certificates will bear a legend to
      the
      foregoing effect.

     

    2. The
      Transferee is acquiring the Certificates for its own account for investment
      only
      and not with a view to or for sale in connection with any distribution thereof
      in any manner that would violate the Act or any applicable state securities
      laws.

     

    3. The
      Transferee is (a) a substantial, sophisticated institutional investor having
      such knowledge and experience in financial and business matters, and, in
      particular, in such matters related to securities similar to the Certificates,
      such that it is capable of evaluating the merits and risks of investment in
      the
      Certificates, (b) able to bear the economic risks of such an investment and
      (c)
      an “accredited investor” within the meaning of Rule 501(a) promulgated pursuant
      to the Act.

     

    4. The
      Transferee has been furnished with, and has had an opportunity to review (a)
      a
      copy of the Pooling and Servicing Agreement and (b) such other information
      concerning the Certificates, the Mortgage Loans and the Depositor as has been
      requested by the Transferee from the Depositor or the Transferor and is relevant
      to the Transferee’s decision to purchase the Certificates. The Transferee has
      had any questions arising from such review answered by the Depositor or the
      Transferor to the satisfaction of the Transferee.

     

    
      
        
        

      

      
        B-3-2

        
          

        

      

      
        
        

      

    

     

    5. The
      Transferee has not and will not nor has it authorized or will it authorize
      any
      person to (a) offer, pledge, sell, dispose of or otherwise transfer any
      Certificate, any interest in any Certificate or any other similar security
      to
      any person in any manner, (b) solicit any offer to buy or to accept a pledge,
      disposition of other transfer of any Certificate, any interest in any
      Certificate or any other similar security from any person in any manner, (c)
      otherwise approach or negotiate with respect to any Certificate, any interest
      in
      any Certificate or any other similar security with any person in any manner,
      (d)
      make any general solicitation by means of general advertising or in any other
      manner or (e) take any other action, that (as to any of (a) through (e) above)
      would constitute a distribution of any Certificate under the Act, that would
      render the disposition of any Certificate a violation of Section 5 of the 1933
      Act or any state securities law, or that would require registration or
      qualification pursuant thereto. The Transferee will not sell or otherwise
      transfer any of the Certificates, except in compliance with the provisions
      of
      the Pooling and Servicing Agreement.

     

    6. The
      Transferee: (a) is not an employee benefit plan or other plan subject to the
      prohibited transaction provisions of the Employee Retirement Income Security
      Act
      of 1974, as amended (“ERISA”), or Section 4975 of the Internal Revenue Code of
      1986, as amended (the “Code”) (each, a “Plan”), or any other person (including
      an investment manager, a named fiduciary or a trustee of any Plan) acting,
      directly or indirectly, on behalf of or purchasing any Certificate with “plan
      assets” of any Plan within the meaning of the Department of Labor (“DOL”)
      regulation at 29 C.F.R. § 2510.3-101 or (b) has provided the Securities
      Administrator with an Opinion of Counsel on which the Depositor, the Master
      Servicer, the Securities Administrator, the Trustee, Ocwen, GMAC and Countrywide
      Home Loans Sercvicing LP (“Countrywide”; together with Ocwen and GMAC, the
“Servicers”) may rely, acceptable to and in form and substance satisfactory to
      the Securities Administrator to the effect that the purchase of Certificates
      is
      permissible under applicable law, will not constitute or result in any
      non-exempt prohibited transaction under ERISA or Section 4975 of the Code and
      will not subject the Trust Fund, the Trustee, the Master Servicer, the
      Securities Administrator, the Depositor or the Servicers to any obligation
      or
      liability (including obligations or liabilities under ERISA or Section 4975
      of
      the Code) in addition to those undertaken in the Pooling and Servicing
      Agreement.

     

    In
      addition, the Transferee hereby certifies, represents and warrants to, and
      covenants with, the Depositor, the Trustee, the Securities Administrator, the
      Master Servicer and the Servicers that the Transferee will not transfer such
      Certificates to any Plan or person unless such Plan or person meets the
      requirements set forth in paragraph 6 above.

     

    
      	 	 	 
	 	
              Very
                truly yours,

            
	 
 	 
 	 
 
	
            	By:  	
            
	 	
              

              Name:

              Title:

            
	 	 

    

     

    
      
        
        

      

      
        B-3-3

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      B-4

     

    TRANSFER
      AFFIDAVIT AND AGREEMENT

     

    
      	
              STATE
                OF NEW YORK

            	
              )

            	 
	 	
              )

            	
              ss.:

            
	
              COUNTY
                OF NEW YORK

            	
              )

            	 

    

     

    ___________________________
      being duly sworn, deposes, represents and warrants as follows:

     

    
      	 	
              1.

            	
              I
                am a _____________________ of _______________________________ (the
                “Owner”) a corporation duly organized and existing under the laws of
                _________________________, the record owner of ACE Securities Corp.
                Home
                Equity Loan Trust, Series 2007-HE4 Asset Backed Pass-Through Certificates,
                Class R Certificates (the “Class R Certificates”), on behalf of whom I
                make this affidavit and agreement. Capitalized terms used but not
                defined
                herein have the respective meanings assigned thereto in the Pooling
                and
                Servicing Agreement, dated as of April 1, 2007, among ACE Securities
                Corp., Wells Fargo Bank, N.A., Ocwen Loan Servicing, LLC, GMAC Mortgage,
                LLC and HSBC Bank USA, National Association, pursuant to which the
                Class R
                Certificates were issued.

            

    

     

    
      	 	
              2.

            	
              The
                Owner (i) is and will be a “Permitted Transferee” as of
                ____________________. ____ and (ii) is acquiring the Class R Certificates
                for its own account or for the account of another Owner from which
                it has
                received an affidavit in substantially the same form as this affidavit.
                A
                “Permitted Transferee” is any person other than a “disqualified
                organization” or a possession of the United States. For this purpose, a
                “disqualified organization” means the United States, any state or
                political subdivision thereof, any agency or instrumentality of any
                of the
                foregoing (other than an instrumentality all of the activities of
                which
                are subject to tax and, except for the Federal Home Loan Mortgage
                Corporation, a majority of whose board of directors is not selected
                by any
                such governmental entity) or any foreign government, international
                organization or any agency or instrumentality of such foreign government
                or organization, any real electric or telephone cooperative, or any
                organization (other than certain farmers’ cooperatives) that is generally
                exempt from federal income tax unless such organization is subject
                to the
                tax on unrelated business taxable
                income.

            

    

     

    
      	 	
              3.

            	
              The
                Owner is aware (i) of the tax that would be imposed on transfers
                of the
                Class R Certificates to disqualified organizations under the Internal
                Revenue Code of 1986 that applies to all transfers of the Class R
                Certificates after April 31, 1988; (ii) that such tax would be on
                the
                transferor or, if such transfer is through an agent (which person
                includes
                a broker, nominee or middleman) for a non-Permitted Transferee, on
                the
                agent; (iii) that the person otherwise liable for the tax shall be
                relieved of liability for the tax if the transferee furnishes to
                such
                person an affidavit that the transferee is a Permitted Transferee
                and, at
                the time of transfer, such person does not have actual knowledge
                that the
                affidavit is false; and (iv) that each of the Class R Certificates
                may be
                a “noneconomic residual interest” within the meaning of proposed Treasury
                regulations promulgated under the Code and that the transferor of
                a
                “noneconomic residual interest” will remain liable for any taxes due with
                respect to the income on such residual interest, unless no significant
                purpose of the transfer is to impede the assessment or collection
                of
                tax.

            

    

     

    
      
        
        

      

      
        B-4-1

        
          

        

      

      
        
        

      

    

     

    
      	 	
              4.

            	
              The
                Owner is aware of the tax imposed on a “pass-through entity” holding the
                Class R Certificates if, at any time during the taxable year of the
                pass-through entity, a non-Permitted Transferee is the record holder
                of an
                interest in such entity. (For this purpose, a “pass-through entity”
                includes a regulated investment company, a real estate investment
                trust or
                common trust fund, a partnership, trust or estate, and certain
                cooperatives.)

            

    

     

    
      	 	
              5.

            	
              The
                Owner is aware that the Securities Administrator will not register
                the
                transfer of any Class R Certificate unless the transferee, or the
                transferee’s agent, delivers to the Securities Administrator, among other
                things, an affidavit in substantially the same form as this affidavit.
                The
                Owner expressly agrees that it will not consummate any such transfer
                if it
                knows or believes that any of the representations contained in such
                affidavit and agreement are false.

            

    

     

    
      	 	
              6.

            	
              The
                Owner consents to any additional restrictions or arrangements that
                shall
                be deemed necessary upon advice of counsel to constitute a reasonable
                arrangement to ensure that the Class R Certificates will only be
                owned,
                directly or indirectly, by an Owner that is a Permitted
                Transferee.

            

    

     

    
      	 	
              7.

            	
              The
                Owner’s taxpayer identification number is
                ________________.

            

    

     

    
      	 	
              8.

            	
              The
                Owner has reviewed the restrictions set forth on the face of the
                Class R
                Certificates and the provisions of Section 6.02(d) of the Pooling
                and
                Servicing Agreement under which the Class R Certificates were issued
                (in
                particular, clauses (iii)(A) and (iii)(B) of Section 6.02(d) which
                authorize the Securities Administrator to deliver payments to a person
                other than the Owner and negotiate a mandatory sale by the Securities
                Administrator in the event that the Owner holds such Certificate
                in
                violation of Section 6.02(d)); and that the Owner expressly agrees
                to be
                bound by and to comply with such restrictions and
                provisions.

            

    

     

    
      	 	
              9.

            	
              The
                Owner is not acquiring and will not transfer the Class R Certificates
                in
                order to impede the assessment or collection of any
                tax.

            

    

     

    
      	 	
              10.

            	
              The
                Owner anticipates that it will, so long as it holds the Class R
                Certificates, have sufficient assets to pay any taxes owed by the
                holder
                of such Class R Certificates, and hereby represents to and for the
                benefit
                of the person from whom it acquired the Class R Certificates that
                the
                Owner intends to pay taxes associated with holding such Class R
                Certificates as they become due, fully understanding that it may
                incur tax
                liabilities in excess of any cash flows generated by the Class R
                Certificates.

            

    

     

    
      
        
        

      

      
        B-4-2

        
          

        

      

      
        
        

      

    

     

    
      	 	
              11.

            	
              The
                Owner has no present knowledge that it may become insolvent or subject
                to
                a bankruptcy proceeding for so long as it holds the Class R
                Certificates.

            

    

     

    
      	 	
              12.

            	
              The
                Owner has no present knowledge or expectation that it will be unable
                to
                pay any United States taxes owed by it so long as any of the Certificates
                remain outstanding.

            

    

     

    
      	 	
              13.

            	
              The
                Owner is not acquiring the Class R Certificates with the intent to
                transfer the Class R Certificates to any person or entity that will
                not
                have sufficient assets to pay any taxes owed by the holder of such
                Class R
                Certificates, or that may become insolvent or subject to a bankruptcy
                proceeding, for so long as the Class R Certificates remain
                outstanding.

            

    

     

    
      	 	
              14.

            	
              The
                Owner will, in connection with any transfer that it makes of the
                Class R
                Certificates, obtain from its transferee the representations required
                by
                Section 6.02(d) of the Pooling and Servicing Agreement under which
                the
                Class R Certificate were issued and will not consummate any such
                transfer
                if it knows, or knows facts that should lead it to believe, that
                any such
                representations are false.

            

    

     

    
      	 	
              15.

            	
              The
                Owner will, in connection with any transfer that it makes of the
                Class R
                Certificates, deliver to the Securities Administrator an affidavit,
                which
                represents and warrants that it is not transferring the Class R
                Certificates to impede the assessment or collection of any tax and
                that it
                has no actual knowledge that the proposed transferee: (i) has insufficient
                assets to pay any taxes owed by such transferee as holder of the
                Class R
                Certificates; (ii) may become insolvent or subject to a bankruptcy
                proceeding for so long as the Class R Certificates remains outstanding;
                and (iii) is not a “Permitted
                Transferee”.

            

    

     

    
      	 	
              16.

            	
              The
                Owner is a citizen or resident of the United States, a corporation,
                partnership or other entity created or organized in, or under the
                laws of,
                the United States or any political subdivision thereof, or an estate
                or
                trust whose income from sources without the United States may be
                included
                in gross income for United States federal income tax purposes regardless
                of its connection with the conduct of a trade or business within
                the
                United States.

            

    

     

    
      	 	
              17.

            	
              The
                Owner of the Class R Certificate, hereby agrees that in the event
                that the
                Trust Fund created by the Pooling and Servicing Agreement is terminated
                pursuant to Section 10.01 thereof, the undersigned shall assign and
                transfer to the Holders of the Class CE-1 Certificates any amounts
                in
                excess of par received in connection with such termination. Accordingly,
                in the event of such termination, the Securities Administrator is
                hereby
                authorized to withhold any such amounts in excess of par and to pay
                such
                amounts directly to the Holders of the Class CE-1 Certificates. This
                agreement shall bind and be enforceable against any successor, transferee
                or assignee of the undersigned in the Class R Certificate. In connection
                with any transfer of the Class R Certificate, the Owner shall obtain
                an
                agreement substantially similar to this clause from any subsequent
                owner.

            

    

     

    
      
        
        

      

      
        B-4-3

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, the Owner has caused this instrument to be executed on its
      behalf, pursuant to the authority of its Board of Directors, by its [Vice]
      President, attested by its [Assistant] Secretary, this ____ day of
      _________________, ____.

     

    
      	 	 	 
	 	
              [OWNER]

            
	 
 	 
 	 
 
	 	By:  	 
	 	
              

              Name:

            
	 	Title:
              [Vice] President

    

     

    ATTEST:

     

    
      	 	 	 	 
	By:
	 	 	
            
	
              
                

              

              Name:

            	 	 	
            
	
              Title:
                [Assistant] Secretary

            	 	 	 

    

     

    Personally
      appeared before me the above-named __________________, known or proved to me
      to
      be the same person who executed the foregoing instrument and to be a [Vice]
      President of the Owner, and acknowledged to me that [he/she] executed the same
      as [his/her] free act and deed and the free act and deed of the
      Owner.

     

    Subscribed
      and sworn before me this ______________ day of __________, ____.

     

    
      	 	 
	 	 
	 	
              Notary
                Public

            
	 	 
	 	
              County
                of 

            
	 	
              State
                of _______________________________

            
	 	 
	 	
              My
                Commission expires:

            

    

     

    
      
        
        

      

      
        B-4-4

        
          

        

      

      
        
        

      

    

     

    FORM
      OF
      TRANSFEROR AFFIDAVIT

     

    
      	
              STATE
                OF NEW YORK

            	
              )

            	 
	 	
              )

            	
              ss.:

            
	
              COUNTY
                OF NEW YORK

            	
              )

            	 

    

     

    _________________________,
      being duly sworn, deposes, represents and warrants as follows:

     

    1. I
      am
      a ____________________
      of _________________________ (the “Owner”), a corporation duly organized and
      existing under the laws of _____________, on behalf of whom I make this
      affidavit.

     

    2. The
      Owner
      is not transferring the Class R Certificates (the “Residual Certificates”) to
      impede the assessment or collection of any tax.

     

    3. The
      Owner
      has no actual knowledge that the Person that is the proposed transferee (the
      “Purchaser”) of the Residual Certificates: (i) has insufficient assets to pay
      any taxes owed by such proposed transferee as holder of the Residual
      Certificates; (ii) may become insolvent or subject to a bankruptcy proceeding
      for so long as the Residual Certificates remain outstanding and (iii) is not
      a
      Permitted Transferee.

     

    4. The
      Owner
      understands that the Purchaser has delivered to the Securities Administrator
      a
      transfer affidavit and agreement in the form attached to the Pooling and
      Servicing Agreement as Exhibit B-4. The Owner does not know or believe that
      any
      representation contained therein is false.

     

    5. At
      the
      time of transfer, the Owner has conducted a reasonable investigation of the
      financial condition of the Purchaser as contemplated by Treasury Regulations
      Section 1.860E-1(c)(4)(i) and, as a result of that investigation, the Owner
      has
      determined that the Purchaser has historically paid its debts as they became
      due
      and has found no significant evidence to indicate that the Purchaser will not
      continue to pay its debts as they become due in the future. The Owner
      understands that the transfer of a Residual Certificate may not be respected
      for
      United States income tax purposes (and the Owner may continue to be liable
      for
      United States income taxes associated therewith) unless the Owner has conducted
      such an investigation.

     

    6. Capitalized
      terms not otherwise defined herein shall have the meanings ascribed to them
      in
      the Pooling and Servicing Agreement, dated as of April 1, 2007, among ACE
      Securities Corp., Wells Fargo Bank, N.A., Ocwen Loan Servicing, LLC, GMAC
      Mortgage, LLC and HSBC Bank USA, National Association.

     

    
      
        
        

      

      
        B-4-5

        
          

        

      

      
        
        

      

       

    

    IN
      WITNESS WHEREOF, the Owner has caused this instrument to be executed on its
      behalf, pursuant to the authority of its Board of Directors, by its [Vice]
      President, attested by its [Assistant] Secretary, this ____ day of
      ________________, ____.

     

    
      	 	 	 
	 	
              [OWNER]

            
	 
 	 
 	 
 
	 	By:  	 
	 	
              

              Name:

            
	 	
              Title:
                [Vice] President

            

    

     

    ATTEST:

     

    
      	 	 	 	 
	
              By:

            	 	 	 
	
              
                

              

              Name:

            	 	 	
            
	
              Title:
                [Assistant] Secretary

            	 	 	 

    

     

    Personally
      appeared before me the above-named _________________, known or proved to me
      to
      be the same person who executed the foregoing instrument and to be a [Vice]
      President of the Owner, and acknowledged to me that [he/she] executed the same
      as [his/her] free act and deed and the free act and deed of the
      Owner.

     

    Subscribed
      and sworn before me this ______ day of _____________, ____.

     

    

    
      	 	 
	 	
              
                
Notary
                Public

            
	 	 
	 	
              County
                of _________________________________________

            
	 	
              State
                of ___________________________________________

            
	 	 
	 	
              My
                Commission expires:

            

    

     

    
      
        
        

      

      
        B-4-6

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      C

     

    BACK-UP
      CERTIFICATION

     

    Re: __________
      (the “Trust”)

     

    Mortgage
      Pass-Through Certificates, Series 2007-HE4

     

    I,
      [identify the certifying individual], certify to ACE Securities Corp. (the
      “Depositor”), HSBC Bank USA, National Association (the “Trustee”) or Wells Fargo
      Bank, National Association (the “Master Servicer”), and their respective
      officers, directors and affiliates, and with the knowledge and intent that
      they
      will rely upon this certification, that:

     

    (1) I
      have
      reviewed the servicer compliance statement of the Servicer provided in
      accordance with Item 1123 of Regulation AB (the “Compliance Statement”), the
      report on assessment of the Servicer’s compliance with the servicing criteria
      set forth in Item 1122(d) of Regulation AB (the “Servicing Criteria”), provided
      in accordance with Rules 13a-18 and 15d-18 under Securities Exchange Act of
      1934, as amended (the “Exchange Act”) and Item 1122 of Regulation AB (the
“Servicing Assessment”), the registered public accounting firm’s attestation
      report provided in accordance with Rules 13a-18 and 15d-18 under the Exchange
      Act and Section 1122(b) of Regulation AB (the “Attestation
      Report”), and all servicing reports, officer’s certificates and other
      information relating to the servicing of the Mortgage Loans by the Servicer
      during 200[ ] that were delivered by the Servicer to the Master Servicer
      pursuant to [the Agreement] [the Flow Servicing Agreement, dated as of June
      30,
      2006 (the “Flow Servicing Agreement”), between the Servicer and DB Structured
      Products, Inc. (“DBSP”) as amended and modified by the Assignment, Assumption
      and Recognition Agreement, dated as of April 30, 2007, among the Servicer,
      DBSP
      and ACE Securities Corp.] (collectively, the “Servicer Servicing
      Information”);

     

    (2) Based
      on
      my knowledge, the Servicer Servicing Information, taken as a whole, does not
      contain any untrue statement of a material fact or omit to state a material
      fact
      necessary to make the statements made, in the light of the circumstances under
      which such statements were made, not misleading with respect to the period
      of
      time covered by the Servicer Servicing Information;

     

    (3) Based
      on
      my knowledge, all of the Servicer Servicing Information required to be provided
      by the Servicer under the Agreement has been provided to the Master
      Servicer;

     

    (4) I
      am
      responsible for reviewing the activities performed by the Servicer as servicer
      under the Agreement, and based on my knowledge and the compliance review
      conducted in preparing the Compliance Statement and except as disclosed in
      the
      Compliance Statement, the Servicing Assessment or the Attestation Report, the
      Servicer has fulfilled its obligations under the Agreement in all material
      respects; and

     

    
      
        
        

      

      
        C-1

        
          

        

      

      
        
        

      

    

     

    (5) The
      Compliance Statement required to be delivered by the Servicer pursuant to the
      Agreement, and the Servicing Assessment and Attestation Report required to
      be
      provided by the Servicer and by any Subservicer or Subcontractor pursuant to
      the
      Agreement, have been provided to the Master Servicer. Any material instances
      of
      noncompliance described in such reports have been disclosed to the Master
      Servicer. Any material instance of noncompliance with the Servicing Criteria
      has
      been disclosed in such reports.

     

    Capitalized
      terms used and not otherwise defined herein have the meanings assigned thereto
      in [the Pooling and Servicing Agreement (the “Agreement”), dated as of April 1,
      2007, among ACE Securities Corp. as Depositor, Wells Fargo Bank, N.A. as Master
      Servicer and Securities Administrator, Ocwen Loan Servicing, LLC as a Servicer,
      GMAC Mortgage, LLC as a Servicer and HSBC Bank USA, National Association as
      Trustee] [the Flow Servicing Agreement].

     

    
      	Date:
              _____________________________________________	 	 	 
	 	 	 	 
	 	 	 	
            
	
              

              [Signature]

            	 	 	
            
	
            	 	 	
            
	___________________________________________ 	 	 	 
	
              [Title]

            	 	 	 

    

     

    
      
        
        

      

      
        C-2

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      D

    

    FORM
      OF
      POWER OF ATTORNEY

     

    RECORDING
      REQUESTED BY

    AND
      WHEN
      RECORDED MAIL TO

    [Servicer]

    [Servicer’s
      Address]

    

    Attn:
      _________________________________

    

    LIMITED
      POWER OF ATTORNEY

     

    KNOW
      ALL
      MEN BY THESE PRESENTS, that ________________, having its principal place of
      business at ____________________, as Trustee (the “Trustee”) pursuant to that
      Pooling and Servicing Agreement among ___________________ (the “Depositor”),
      Wells Fargo Bank, N.A., as Master Servicer and Securities Administrator, Ocwen
      Loan Servicing, LLC as a servicer (“Ocwen”), GMAC Mortgage, LLC as a servicer
      (“GMAC”) and the Trustee, dated as of April 1, 2007 (the “Pooling and Servicing
      Agreement”), hereby constitutes and appoints [Ocwen][GMAC][Countrywide Home Loan
      Servicing LP] (the “Servicer”), by and through the Servicer’s officers, the
      Trustee’s true and lawful Attorney-in-Fact, in the Trustee’s name, place and
      stead and for the Trustee’s benefit, in connection with all mortgage loans
      serviced by the Servicer pursuant to [the Pooling and Servicing Agreement]
      [the
      Flow Servicing Agreement, dated as of June 30, 2006, between the Servicer and
      DB
      Structured Products, Inc. (“DBSP”) as amended and modified by the Assignment,
      Assumption and Recognition Agreement, dated as of April 30, 2007, among the
      Servicer, DBSP, ACE Securities Corp. and the Master Servicer (together, the
      “Servicing Agreement”)] for the purpose of performing all acts and executing all
      documents in the name of the Trustee as may be customarily and reasonably
      necessary and appropriate to effectuate the following enumerated transactions
      in
      respect of any of the mortgages or deeds of trust (the “Mortgages” and the
“Deeds of Trust”, respectively) and promissory notes secured thereby (the
“Mortgage Notes”) for which the undersigned is acting as Trustee for various
      certificateholders (whether the undersigned is named therein as mortgagee or
      beneficiary or has become mortgagee by virtue of endorsement of the Mortgage
      Note secured by any such Mortgage or Deed of Trust) and for which the Servicer
      is acting as servicer, all subject to the terms of the Pooling and Servicing
      Agreement and Servicing Agreement.

    

    This
      appointment shall apply to the following enumerated transactions
      only:

    

    
      	
              1.

            	
              The
                modification or re-recording of a Mortgage or Deed of Trust, where
                said
                modification or re-recordings is for the purpose of correcting the
                Mortgage or Deed of Trust to conform same to the original intent
                of the
                parties thereto or to correct title errors discovered after such
                title
                insurance was issued and said modification or re-recording, in either
                instance, does not adversely affect the lien of the Mortgage or Deed
                of
                Trust as insured.

            

    

     

    
      
        
        

      

      
        D-1

        
          

        

      

      
        
        

      

    

     

     

    
      	
              2.

            	
              The
                subordination of the lien of a Mortgage or Deed of Trust to an easement
                in
                favor of a public utility company of a government agency or unit
                with
                powers of eminent domain; this section shall include, without limitation,
                the execution of partial satisfactions/releases, partial reconveyances
                or
                the execution or requests to trustees to accomplish
                same.

            

    

    

    
      	
              3.

            	
              The
                conveyance of the properties to the mortgage insurer, or the closing
                of
                the title to the property to be acquired as real estate owned, or
                conveyance of title to real estate
                owned.

            

    

     

    
      
        	
                4. 

              	The completion of loan assumption
                agreements.

      

       

    

    
      	
              5.

            	
              The
                full satisfaction/release of a Mortgage or Deed of Trust or full
                conveyance upon payment and discharge of all sums secured thereby,
                including, without limitation, cancellation of the related Mortgage
                Note.

            

    

    

    
      	
              6.

            	
              The
                assignment of any Mortgage or Deed of Trust and the related Mortgage
                Note,
                in connection with the repurchase of the mortgage loan secured and
                evidenced thereby.

            

    

    

    
      	
              7.

            	
              The
                full assignment of a Mortgage or Deed of Trust upon payment and discharge
                of all sums secured thereby in conjunction with the refinancing thereof,
                including, without limitation, the assignment of the related Mortgage
                Note.

            

    

    

    
      	
              8.

            	
              With
                respect to a Mortgage or Deed of Trust, the foreclosure, the taking
                of a
                deed in lieu of foreclosure, or the completion of judicial or non-judicial
                foreclosure or termination, cancellation or rescission of any such
                foreclosure, including, without limitation, any and all of the following
                acts:

            

    

    

    
      	 	
              a.

            	
              the
                substitution of trustee(s) serving under a Deed of Trust, in accordance
                with state law and the Deed of
                Trust;

            

    

    

    
      	 	
              b.

            	
              the
                preparation and issuance of statements of breach or
                non-performance;

            

    

    

    
      	 	
              c.

            	
              the
                preparation and filing of notices of default and/or notices of
                sale;

            

    

    

    
      	 	
              d.

            	
              the
                cancellation/rescission of notices of default and/or notices of
                sale;

            

    

    

    
      	 	
              e.

            	
              the
                taking of a deed in lieu of foreclosure;
                and

            

    

    

    
      	 	
              f.

            	
              the
                preparation and execution of such other documents and performance
                of such
                other actions as may be necessary under the terms of the Mortgage,
                Deed of
                Trust or state law to expeditiously complete said transactions in
                paragraphs 8.a. through 8.e.,
                above.

            

    

     

    
      
        
        

      

      
        D-2

        
          

        

      

      
        
        

      

    

     

    The
      undersigned gives said Attorney-in-Fact full power and authority to execute
      such
      instruments and to do and perform all and every act and thing necessary and
      proper to carry into effect the power or powers granted by or under this Limited
      Power of Attorney as fully as the undersigned might or could do, and hereby
      does
      ratify and confirm to all that said Attorney-in-Fact shall lawfully do or cause
      to be done by authority hereof. 

    Third
      parties without actual notice may rely upon the exercise of the power granted
      under this Limited Power of Attorney; and may be satisfied that this Limited
      Power of Attorney shall continue in full force and effect and has not been
      revoked unless an instrument of revocation has been made in writing by the
      undersigned.

    

    IN
      WITNESS WHEREOF, ________________ as Trustee pursuant to that Pooling and
      Servicing Agreement among the Depositor, Wells Fargo Bank, National Association,
      Wells Fargo, Ocwen Loan Servicing, LLC, GMAC Mortgage, LLC and the Trustee,
      dated as of ___________ 1, 200__ (_____________ Asset Backed Certificates,
      Series 200__-___), has caused its corporate seal to be hereto affixed and these
      presents to be signed and acknowledged in its name and behalf by ____________
      its duly elected and authorized Vice President this _________ day of _________,
      200__.

     

    
      	 	 	 
	 	 	
              ________________________________________

            
	
               

            	 	
                                                                                     as
                Trustee for _____ Asset 

              Backed
                Certificates, Series 200__-___

            
	 
 	 
 	 
 
	 	 	
              By:
                ________________________________________

            
	 	
            
	 	
            

    

     

    
      	
              STATE
                OF _____________

            
	 
	
              COUNTY
                OF ___________

            

    

     

    On
      _______________, 200__, before me, the undersigned, a Notary Public in and
      for
      said state, personally appeared ____________, Vice President of
      ____________________ as Trustee for ___________ Asset Backed Certificates,
      Series 200__-___, personally known to me to be the person whose name is
      subscribed to the within instrument and acknowledged to me that he/she executed
      that same in his/her authorized capacity, and that by his/her signature on
      the
      instrument the entity upon behalf of which the person acted and executed the
      instrument.

    

    WITNESS
      my hand and official seal.

    (SEAL)

     

    
      	 	 
	 	
              Notary
                Public

            
	 	
              My
                Commission Expires
                _________________

            

    

     

    
      
        
        

      

      
        D-3

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      E

    

    SERVICING
      CRITERIA

     

    SERVICING
      CRITERIA TO BE ADDRESSED IN ASSESSMENT OF COMPLIANCE

     

    The
      assessment of compliance to be delivered by [the Servicer] [the Master Servicer]
      [Name of Subservicer] shall address, at a minimum, the criteria identified
      as
      below as “Relevant Servicing Criteria”:

    

    
      	
              SERVICING
                CRITERIA 

            	 	
              RELEVANT
                SERVICING CRITERIA

            
	
              Reference

            	 	
              Criteria

            	 	
               

            
	
               

            	 	
              General
                Servicing Considerations

            	 	
               

            
	 	 	 	 	 
	
              1122(d)(1)(i)

            	 	
              Policies
                and procedures are instituted to monitor any performance or other
                triggers
                and events of default in accordance with the transaction
                agreements.

            	 	
              X

            
	 	 	 	 	 
	
              1122(d)(1)(ii)

            	 	
              If
                any material servicing activities are outsourced to third parties,
                policies and procedures are instituted to monitor the third party’s
                performance and compliance with such servicing activities.

            	 	
              X

            
	 	 	 	 	 
	
              1122(d)(1)(iii)

            	 	
              Any
                requirements in the transaction agreements to maintain a back-up
                servicer
                for the mortgage loans are maintained.

            	 	 
	 	 	 	 	 
	
              1122(d)(1)(iv)

            	 	
              A
                fidelity bond and errors and omissions policy is in effect on the
                party
                participating in the servicing function throughout the reporting
                period in
                the amount of coverage required by and otherwise in accordance with
                the
                terms of the transaction agreements.

            	 	
              X

            
	 	 	 	 	 
	
               

            	 	
              Cash
                Collection and Administration

            	 	 
	 	 	 	 	 
	
              1122(d)(2)(i)

            	 	
              Payments
                on mortgage loans are deposited into the appropriate custodial bank
                accounts and related bank clearing accounts no more than two business
                days
                following receipt, or such other number of days specified in the
                transaction agreements.

            	 	
              X

            
	 	 	 	 	 
	
              1122(d)(2)(ii)

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

            	 	
              X

            
	 	 	 	 	 
	
              1122(d)(2)(iii)

            	 	
              Advances
                of funds or guarantees regarding collections, cash flows or distributions,
                and any interest or other fees charged for such advances, are made,
                reviewed and approved as specified in the transaction
                agreements.

            	 	
              X

            
	 	 	 	 	 
	
              1122(d)(2)(iv)

            	 	
              The
                related accounts for the transaction, such as cash reserve accounts
                or
                accounts established as a form of overcollateralization, are separately
                maintained (e.g., with respect to commingling of cash) as set forth
                in the
                transaction agreements.

            	 	
              X

            
	 	 	 	 	 
	
              1122(d)(2)(v)

            	 	
              Each
                custodial account is maintained at a federally insured depository
                institution as set forth in the transaction agreements. For purposes
                of
                this criterion, “federally insured depository institution” with respect to
                a foreign financial institution means a foreign financial institution
                that
                meets the requirements of Rule 13k-1(b)(1) of the Securities Exchange
                Act.

            	 	
              X

            
	 	 	 	 	 
	
              1122(d)(2)(vi)

            	 	
              Unissued
                checks are safeguarded so as to prevent unauthorized
                access.

            	 	
              X

            

    

     

    
      
        
        

      

      
        E-1

        
          

        

      

      
        
        

      

    

     

    

      
        	
              	
              
	
              	
              	
                 

              

      

       

    

    
      	
               SERVICING
                CRITERIA

            	 	
              RELEVANT
                SERVICING CRITERIA

            
	
              Reference

            	 	
              Criteria

            	 	 
	
              1122(d)(2)(vii)

            	 	
              Reconciliations
                are prepared on a monthly basis for all asset-backed securities related
                bank accounts, including custodial accounts and related bank clearing
                accounts. These reconciliations are (A) mathematically accurate;
                (B)
                prepared within 30 calendar days after the bank statement cutoff
                date, or
                such other number of days specified in the transaction agreements;
                (C)
                reviewed and approved by someone other than the person who prepared
                the
                reconciliation; and (D) contain explanations for reconciling items.
                These
                reconciling items are resolved within 90 calendar days of their original
                identification, or such other number of days specified in the transaction
                agreements.

            	 	
              X

            
	 	 	 	 	 
	
               

            	 	
              Investor
                Remittances and Reporting

            	 	 
	 	 	 	 	 
	
              1122(d)(3)(i)

            	 	
              Reports
                to investors, including those to be filed with the Commission, are
                maintained in accordance with the transaction agreements and applicable
                Commission requirements. Specifically, such reports (A) are prepared
                in
                accordance with timeframes and other terms set forth in the transaction
                agreements; (B) provide information calculated in accordance with
                the
                terms specified in the transaction agreements; (C) are filed with
                the
                Commission as required by its rules and regulations; and (D) agree
                with
                investors’ or the trustee’s records as to the total unpaid principal
                balance and number of mortgage loans serviced by the
                Servicer.

            	 	
              X

            
	 	 	 	 	 
	
              1122(d)(3)(ii)

            	 	
              Amounts
                due to investors are allocated and remitted in accordance with timeframes,
                distribution priority and other terms set forth in the transaction
                agreements.

            	 	
              X

            
	 	 	 	 	 
	
              1122(d)(3)(iii)

            	 	
              Disbursements
                made to an investor are posted within two business days to the Servicer’s
                investor records, or such other number of days specified in the
                transaction agreements.

            	 	
              X

            
	 	 	 	 	 
	
              1122(d)(3)(iv)

            	 	
              Amounts
                remitted to investors per the investor reports agree with cancelled
                checks, or other form of payment, or custodial bank
                statements.

            	 	
              X

            
	 	 	 	 	 
	
               

            	 	
              Pool
                Asset Administration

            	 	 
	 	 	 	 	 
	
              1122(d)(4)(i)

            	 	
              Collateral
                or security on mortgage loans is maintained as required by the transaction
                agreements or related mortgage loan documents.

            	 	
              X

            
	 	 	 	 	 
	
              1122(d)(4)(ii)

            	 	
              Mortgage
                loan and related documents are safeguarded as required by the transaction
                agreements

            	 	
              X

            
	 	 	 	 	 
	
              1122(d)(4)(iii)

            	 	
              Any
                additions, removals or substitutions to the asset pool are made,
                reviewed
                and approved in accordance with any conditions or requirements in
                the
                transaction agreements.

            	 	
              X

            
	 	 	 	 	 
	
              1122(d)(4)(iv)

            	 	
              Payments
                on mortgage loans, including any payoffs, made in accordance with
                the
                related mortgage loan documents are posted to the Servicer’s obligor
                records maintained no more than two business days after receipt,
                or such
                other number of days specified in the transaction agreements, and
                allocated to principal, interest or other items (e.g., escrow) in
                accordance with the related mortgage loan documents.

            	 	
              X

            
	 	 	 	 	 
	
              1122(d)(4)(v)

            	 	
              The
                Servicer’s records regarding the mortgage loans agree with the Servicer’s
                records with respect to an obligor’s unpaid principal
                balance.

            	 	
              X

            
	 	 	 	 	 
	
              1122(d)(4)(vi)

            	 	
              Changes
                with respect to the terms or status of an obligor's mortgage loans
                (e.g.,
                loan modifications or re-agings) are made, reviewed and approved
                by
                authorized personnel in accordance with the transaction agreements
                and
                related pool asset documents.

            	 	
              X

            
	 	 	 	 	 
	
              1122(d)(4)(vii)

            	 	
              Loss
                mitigation or recovery actions (e.g., forbearance plans, modifications
                and
                deeds in lieu of foreclosure, foreclosures and repossessions, as
                applicable) are initiated, conducted and concluded in accordance
                with the
                timeframes or other requirements established by the transaction
                agreements.

            	 	
              X

            

    

     

    
      
        
        

      

      
        E-2

        
          

        

      

      
        
        

      

    

     

    
      	
                SERVICING
                CRITERIA

            	 	
              RELEVANT
                SERVICING CRITERIA

            
	
              Reference

            	 	
              Criteria

            	 	 
	
              1122(d)(4)(viii)

            	 	
              Records
                documenting collection efforts are maintained during the period a
                mortgage
                loan is delinquent in accordance with the transaction agreements.
                Such
                records are maintained on at least a monthly basis, or such other
                period
                specified in the transaction agreements, and describe the entity’s
                activities in monitoring delinquent mortgage loans including, for
                example,
                phone calls, letters and payment rescheduling plans in cases where
                delinquency is deemed temporary (e.g., illness or
                unemployment).

            	 	
              X

            
	 	 	 	 	 
	
              1122(d)(4)(ix)

            	 	
              Adjustments
                to interest rates or rates of return for mortgage loans with variable
                rates are computed based on the related mortgage loan
                documents.

            	 	
              X

            
	 	 	 	 	 
	
              1122(d)(4)(x)

            	 	
              Regarding
                any funds held in trust for an obligor (such as escrow accounts):
                (A) such
                funds are analyzed, in accordance with the obligor’s mortgage loan
                documents, on at least an annual basis, or such other period specified
                in
                the transaction agreements; (B) interest on such funds is paid, or
                credited, to obligors in accordance with applicable mortgage loan
                documents and state laws; and (C) such funds are returned to the
                obligor
                within 30 calendar days of full repayment of the related mortgage
                loans,
                or such other number of days specified in the transaction
                agreements.

            	 	
              X

            
	 	 	 	 	 
	
              1122(d)(4)(xi)

            	 	
              Payments
                made on behalf of an obligor (such as tax or insurance payments)
                are made
                on or before the related penalty or expiration dates, as indicated
                on the
                appropriate bills or notices for such payments, provided that such
                support
                has been received by the servicer at least 30 calendar days prior
                to these
                dates, or such other number of days specified in the transaction
                agreements.

            	 	
              X

            
	 	 	 	 	 
	
              1122(d)(4)(xii)

            	 	
              Any
                late payment penalties in connection with any payment to be made
                on behalf
                of an obligor are paid from the servicer’s funds and not charged to the
                obligor, unless the late payment was due to the obligor’s error or
                omission.

            	 	
              X

            
	 	 	 	 	 
	
              1122(d)(4)(xiii)

            	 	
              Disbursements
                made on behalf of an obligor are posted within two business days
                to the
                obligor’s records maintained by the servicer, or such other number of days
                specified in the transaction agreements.

            	 	
              X

            
	 	 	 	 	 
	
              1122(d)(4)(xiv)

            	 	
              Delinquencies,
                charge-offs and uncollectible accounts are recognized and recorded
                in
                accordance with the transaction agreements.

            	 	
              X

            
	 	 	 	 	 
	
              1122(d)(4)(xv)

            	 	
              Any
                external enhancement or other support, identified in Item 1114(a)(1)
                through (3) or Item 1115 of Regulation AB, is maintained as set forth
                in
                the transaction agreements.

            	 	 

    

     

    [NAME
      OF
      SERVICER] [MASTER SERVICER] [NAME OF SUBSERVICER]

     

    Date: _________________________

     

    
      	 	 	 	 
	
              By:

            	 	 	
            
	
              Name:
                ____________________________________________

            	 	 	
            
	Title:
              _____________________________________________	 	 	
            

    

     

    
      
        
        

      

      
        E-3

        
          

        

      

      
        
        

      

    

     

    Schedule
      1122 (Pooling and Servicing Agreement)

     

    Assessments
      of Compliance and Attestation Reports Servicing
      Criteria2 

    

    
      	
              Reg.
                AB Item 1122(d) Servicing Criteria

            	 	
              Depositor

            	 	
              Seller

            	 	
              Servicers

            	 	
              Trustee

            	 	
              Custodian

            	 	
              Paying
                Agent

            	 	
              Master
                Servicer

            	 	
              Securities
                Administrator

            
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              (1) General
                Servicing Considerations

            	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              (i) monitoring
                performance or other triggers and events of default

            	 	 	 	 	 	
              X

            	 	 	 	 	 	 	 	
              X

            	 	
              X

            
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              (ii) monitoring
                performance of vendors of activities outsourced

            	 	 	 	 	 	
              X

            	 	 	 	 	 	 	 	
              X

            	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              (iii) maintenance
                of back-up servicer for pool assets

            	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              (iv) fidelity
                bond and E&O policies in effect

            	 	 	 	 	 	
              X

            	 	 	 	 	 	 	 	
              X

            	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              (2) Cash
                Collection and Administration

            	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              (i) timing
                of deposits to custodial account

            	 	 	 	 	 	
              X

            	 	 	 	 	 	
              X

            	 	
              X

            	 	
              X

            
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              (ii) wire
                transfers to investors by authorized personnel

            	 	 	 	 	 	
              X

            	 	 	 	 	 	
              X

            	 	 	 	
              X

            
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              (iii) advances
                or guarantees made, reviewed and approved as required

            	 	 	 	 	 	
              X

            	 	 	 	 	 	 	 	
              X

            	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              (iv) accounts
                maintained as required

            	 	 	 	 	 	
              X

            	 	 	 	 	 	
              X

            	 	
              X

            	 	
              X

            
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              (v) accounts
                at federally insured depository institutions

            	 	 	 	 	 	
              X

            	 	 	 	 	 	
              X

            	 	
              X

            	 	
              X

            
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              (vi) unissued
                checks safeguarded

            	 	 	 	 	 	
              X

            	 	 	 	 	 	
              X

            	 	 	 	
              X

            

    

     

    
      
        

      

      
        	*	
                The
                  descriptions of the Item 1122(d) servicing criteria use key words
                  and
                  phrases and are not verbatim recitations of the servicing criteria.
                  Refer
                  to Regulation AB, Item 1122 for a full description of servicing
                  criteria.

              

      

    

     

    
      
        
        

      

      
        E-4

        
          

        

      

      
        
        

      

    

     

    
      	
              Reg.
                AB Item 1122(d) Servicing Criteria

            	 	
              Depositor

            	 	
              Seller 

            	 	
              Servicers

            	 	
              Trustee

            	 	
              Custodian

            	 	
              Paying
                Agent

            	 	
              Master
                Servicer

            	 	
              Securities
                Administrator 

            
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              (vii) monthly
                reconciliations of accounts

            	 	 	 	 	 	
              X

            	 	 	 	 	 	
              X

            	 	
              X

            	 	
              X

            
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              (3) Investor
                Remittances and Reporting

            	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              (i) investor
                reports

            	 	 	 	 	 	
              X

            	 	 	 	 	 	 	 	
              X

            	 	
              X

            
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              (ii) remittances

            	 	 	 	 	 	
              X

            	 	 	 	 	 	
              X

            	 	 	 	
              X

            
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              (iii) proper
                posting of distributions

            	 	 	 	 	 	
              X

            	 	 	 	 	 	
              X

            	 	 	 	
              X

            
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              (iv) reconciliation
                of remittances and payment statements

            	 	 	 	 	 	
              X

            	 	 	 	 	 	
              X

            	 	
              X

            	 	
              X

            
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              (4) Pool
                Asset Administration

            	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              (i) maintenance
                of pool collateral

            	 	 	 	 	 	
              X

            	 	 	 	
              X

            	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              (ii) safeguarding
                of pool assets/documents

            	 	 	 	 	 	
              X

            	 	 	 	
              X

            	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              (iii) additions,
                removals and substitutions of pool assets

            	 	 	 	
              X

            	 	
              X

            	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              (iv) posting
                and allocation of pool asset payments to pool assets

            	 	 	 	 	 	
              X

            	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              (v) reconciliation
                of servicer records

            	 	 	 	 	 	
              X

            	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              (vi) modifications
                or other changes to terms of pool assets

            	 	 	 	 	 	
              X

            	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              (vii) loss
                mitigation and recovery actions

            	 	 	 	 	 	
              X

            	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              (viii)records
                regarding collection efforts

            	 	 	 	 	 	
              X

            	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              (ix) adjustments
                to variable interest rates on pool assets

            	 	 	 	 	 	
              X

            	 	 	 	 	 	 	 	 	 	 

    

     

    
      
        
        

      

      
        E-5

        
          

        

      

      
        
        

      

    

     

    
      	
                Reg.
                AB Item 1122(d) Servicing Criteria

            	 	
              Depositor

            	 	
              Seller

            	 	
              Servicers

            	 	
              Trustee

            	 	
              Custodian

            	 	
              Paying
                Agent

            	 	
              Master
                Servicer

            	 	
              Securities
                Administrator 

            
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              (x) matters
                relating to funds held in trust for obligors

            	 	 	 	 	 	
              X

            	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              (xi) payments
                made on behalf of obligors (such as for taxes or
                insurance)

            	 	 	 	 	 	
              X

            	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              (xii) late
                payment penalties with respect to payments made on behalf of obligors
                

            	 	 	 	 	 	
              X

            	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              (xiii)records
                with respect to payments made on behalf of obligors

            	 	 	 	 	 	
              X

            	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              (xiv) recognition
                and recording of delinquencies, charge-offs and uncollectible
                accounts

            	 	 	 	 	 	
              X

            	 	 	 	 	 	 	 	
              X

            	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              (xv) maintenance
                of external credit enhancement or other support

            	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
              X

            

    

    

    
      
        
        

      

      
        E-6

        
          

        

      

      
        
        

      

    

    EXHIBIT
      F

    

    MORTGAGE
      LOAN PURCHASE AGREEMENT

     

    
      
        
        

      

      
        F-1

        
          

        

      

      
        
        

      

    

    MORTGAGE
      LOAN PURCHASE AGREEMENT

     

    This
      is a
      Mortgage Loan Purchase Agreement (this “Agreement”), dated April 30, 2007,
      between DB Structured Products, Inc., a Delaware corporation (the “Seller”) and
      ACE Securities Corp., a Delaware corporation (the “Purchaser”).

     

    Preliminary
      Statement

     

    The
      Seller intends to sell the Mortgage Loans (as hereinafter identified), the
      Swap
      Agreement (as hereinafter defined) and the Cap Agreements (as hereinafter
      defined) to the Purchaser on the terms and subject to the conditions set forth
      in this Agreement. The Purchaser intends to deposit the Mortgage Loans, and
      the
      Subsequent Mortgage Loans transferred to it pursuant to one or more Subsequent
      Mortgage Loan Purchase Agreements, into a mortgage pool comprising the Trust
      Fund. The Trust Fund will be evidenced by a single series of mortgage
      pass-through certificates designated as ACE Securities Corp. Home Equity Loan
      Trust, Series 2007-HE4, Asset Backed Pass-Through Certificates (the
“Certificates”). The Certificates will consist of eighteen classes of
      certificates. The Certificates will be issued pursuant to a Pooling and
      Servicing Agreement for ACE Securities Corp. Home Equity Loan Trust, Series
      2007-HE4, Asset Backed Pass-Through Certificates, dated as of April 1, 2007
      (the
“Pooling and Servicing Agreement”), among the Purchaser as depositor, Wells
      Fargo Bank, National Association as master servicer (the “Master Servicer”) and
      securities administrator (the “Securities Administrator”), Ocwen Loan Servicing,
      LLC as a servicer (“Ocwen”), GMAC Mortgage, LLC as a servicer (“GMAC”) and HSBC
      Bank USA, National Association as trustee (the “Trustee”). The Purchaser will
      sell the Class A-1 Certificates (the “Class A-1 Certificates”), Class A-2A,
      Class A-2B, Class A-2C and Class A-2D Certificates (collectively, the “Class A-2
      Certificates”; together with the Class A-1 Certificates, the “Class A
      Certificates”), the Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class
      M-6, Class M-7, Class M-8 and Class M-9 Certificates (the “Mezzanine
      Certificates”; together with the Class A Certificates, the “Publicly Offered
      Certificates”) to Deutsche Bank Securities Inc. (“DBSI”), pursuant to the Second
      Amended and Restated Underwriting Agreement, dated as of June 24, 1999, as
      amended and restated to and including January 25, 2006, between the Purchaser
      and DBSI, and the Terms Agreement, dated April [ ], 2007 (collectively, the
      “Underwriting Agreement”), between the Purchaser and DBSI. Capitalized terms
      used but not defined herein shall have the meanings set forth in the Pooling
      and
      Servicing Agreement. 

     

    The
      parties hereto agree as follows:

     

    SECTION
      1. Agreement
      to Purchase.
      The
      Seller hereby sells, and the Purchaser hereby purchases, on April 30, 2007
      (the
“Closing Date”), (a) certain conventional, one- to four-family, fixed-rate and
      adjustable-rate, first and second lien, residential mortgage loans (the
“Mortgage Loans”), having an aggregate principal balance as of the close of
      business on April 1, 2007 (the “Cut-off Date”) of approximately $1,056,372,737
      (the “Closing Balance”), after giving effect to all payments due on the Mortgage
      Loans on or before the Cut-off Date, whether or not received, including the
      right to any Prepayment Charges payable by the related Mortgagors in connection
      with any Principal Prepayments on the Mortgage Loans,
      but excluding the rights to the servicing of the Mortgage Loans (the “Servicing
      Rights”), which are owned by Ocwen, GMAC and Countrywide Home Loans Servicing LP
      (“Countrywide”; together with Ocwen and GMAC, the “Servicers”) and (b) all of
      the Seller’s right, title and interest in and to (i) the Cap Agreement between
      Deutsche Bank AG, New York Branch, (“DBAG”) and the Trustee,
      as trustee of ACE Securities Corp. Home Equity Loan Trust, Series 2007-HE4,
      Asset Backed Pass-Through Certificates dated as of April 30, 2007
      (the “Group I Cap Agreement”), relating to the Class A-1 Certificates and the
      Mezzanine Certificates and (ii) the Cap Agreement between DBAG and the Trustee,
      as trustee of ACE Securities Corp. Home Equity Loan Trust, Series 2007-HE4,
      Asset Backed Pass-Through Certificates, dated as of April 30, 2007 (the “Group
      II Cap Agreement”; together with the Group I Cap Agreement, the “Cap
      Agreements”) relating to the Class A-2 Certificates and the Mezzanine
      Certificates and (iii) the Swap Agreement between DBAG and the Trustee, as
      trustee of ACE Securities Corp. Home Equity Loan Trust, Series 2007-HE4, Asset
      Backed Pass-Through Certificates dated as of April 30, 2007 (the “Swap
      Agreement) relating to the Offered Certificates. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    SECTION
      2. Mortgage
      Loan Schedule.
      The
      Purchaser and the Seller have agreed upon which of the mortgage loans owned
      by
      the Seller are to be purchased by the Purchaser pursuant to this Agreement
      and
      the Seller will prepare or cause to be prepared on or prior to the Closing
      Date
      a final schedule (the “Closing Schedule”) that shall describe such Mortgage
      Loans and set forth all of the Mortgage Loans to be purchased under this
      Agreement, including the Prepayment Charges. The Closing Schedule will conform
      to the requirements set forth in this Agreement and to the definition of
“Mortgage Loan Schedule” under the Pooling and Servicing Agreement.

     

    SECTION
      3. Consideration.

     

    (a) In
      consideration for the Mortgage Loans, the Swap Agreement and the Cap Agreements
      to be purchased hereunder, the Purchaser shall, as described in Section 8,
      (i)
      pay to or upon the order of the Seller in immediately available funds an amount
      (the “Purchase Price”) equal to (i) $________*1 
      and (ii)
      a 100% interest in the Class CE-1, Class CE-2, Class P and Class R Certificates
      (collectively the “DB Certificates”). The DB Certificates shall be registered in
      the name of “Deutsche Bank Securities Inc.”

     

    (b) The
      Purchaser or any assignee, transferee or designee of the Purchaser shall be
      entitled to all scheduled payments of principal due after the Cut-off Date,
      all
      other payments of principal due and collected after the Cut-off Date, and all
      payments of interest on the Mortgage Loans allocable to the period after the
      Cut-off Date. All scheduled payments of principal and interest due on or before
      the Cut-off Date and collected after the Cut-off Date shall belong to the
      Seller.

     

    (c) Pursuant
      to the Pooling and Servicing Agreement, the Purchaser will assign all of its
      right, title and interest in and to the Mortgage Loans, the Swap Agreement
      and
      the Cap Agreements together with its rights under this Agreement, to the Trustee
      for the benefit of the Certificateholders.

     

    
                  

        
          * Please
            contact the Mortgage Loan Seller for this information.

        

      

    

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

     

    SECTION
      4. Transfer
      of the Mortgage Loans.

     

    (a) Possession
      of Mortgage Files.
      The
      Seller does hereby sell to the Purchaser, without recourse but subject to the
      terms of this Agreement, all of its right, title and interest in, to and under
      the Mortgage Loans, including the related Prepayment Charges, the Swap Agreement
      and the Cap Agreements, but excluding the Servicing Rights. The contents of
      each
      Mortgage File not delivered to the Purchaser or to any assignee, transferee
      or
      designee of the Purchaser on or prior to the Closing Date are and shall be
      held
      in trust by the Seller for the benefit of the Purchaser or any assignee,
      transferee or designee of the Purchaser. Upon the sale of the Mortgage Loans,
      the ownership of each Mortgage Note, the related Mortgage and the other contents
      of the related Mortgage File is vested in the Purchaser and the ownership of
      all
      records and documents with respect to the related Mortgage Loan prepared by
      or
      that come into the possession of the Seller on or after the Closing Date shall
      immediately vest in the Purchaser and shall be delivered immediately to the
      Purchaser or as otherwise directed by the Purchaser.

     

    (b) Delivery
      of Mortgage Loan Documents.
      The
      Seller will, on or prior to the Closing Date, deliver or cause to be delivered
      to the Purchaser or any assignee, transferee or designee of the Purchaser each
      of the following documents for each Mortgage Loan:

     

    (i) the
      original Mortgage Note, including any riders thereto, endorsed in blank, with
      all prior and intervening endorsements showing a complete chain of endorsement
      from the originator to the Person so endorsing to the Trustee;

     

    (ii) the
      original Mortgage or a certified copy thereof, including any riders thereto,
      with evidence of recording thereon, and the original recorded power of attorney,
      if the Mortgage was executed pursuant to a power of attorney, with evidence
      of
      recording thereon, and in the case of each MOM Loan, the original Mortgage,
      noting the presence of the MIN of the Loan and either language indicating that
      the Mortgage Loan is a MOM Loan or if the Mortgage Loan was not a MOM Loan
      at
      origination, the original Mortgage and the assignment thereof to MERS®, with
      evidence of recording indicated thereon;

     

    (iii) unless
      such Mortgage Loan is registered on the MERS System, the original Assignment
      of
      Mortgage executed in blank;

     

    (iv) unless
      such Mortgage Loan is a MOM Loan, the original recorded Assignment or
      Assignments of the Mortgage, or a certified copy or copies thereof, showing
      a
      complete chain of assignment from the originator to the last Person assigning
      the Mortgage;

     

    (v) the
      original or copies of each assumption, modification, written assurance or
      substitution agreement, if any;

     

    (vi) the
      original lender’s title insurance policy, together with all endorsements or
      riders that were issued with or subsequent to the issuance of such policy,
      insuring the priority of the Mortgage as a first lien or second lien on the
      Mortgaged Property represented therein as a fee interest vested in the
      Mortgagor;

     

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

    (vii) the
      original of any guarantee executed in connection with the Mortgage Note, if
      any;
      and

     

    (viii) the
      original of any security agreement, chattel mortgage or equivalent document
      executed in connection with the Mortgage, if any.

     

    Notwithstanding
      anything to the contrary contained in this Section 4, with respect to a maximum
      of approximately 1.00% of the Mortgage Loans, by aggregate principal balance
      of
      the Mortgage Loans as of the Cut-off Date, if any original Mortgage Note
      referred to in Section 4(b)(i) above cannot be located, the obligations of
      the
      Seller to deliver such documents shall be deemed to be satisfied upon delivery
      to the Purchaser or any assignee, transferee or designee of the Purchaser of
      a
      photocopy of such Mortgage Note, if available, with a lost note affidavit
      substantially in the form of Exhibit
      1
      attached
      hereto. If any of the original Mortgage Notes for which a lost note affidavit
      was delivered to the Purchaser or any assignee, transferee or designee of the
      Purchaser is subsequently located, such original Mortgage Note shall be
      delivered to the Purchaser or any assignee, transferee or designee of the
      Purchaser within three (3) Business Days; and if any document referred to in
      Section 4(b)(ii) or 4(b)(iv) above has been submitted for recording but either
      (x) has not been returned from the applicable public recording office or (y)
      has
      been lost or such public recording office has retained the original of such
      document, the obligations of the Seller hereunder shall be deemed to have been
      satisfied upon delivery to the Purchaser or any assignee, transferee or designee
      of the Purchaser promptly upon receipt thereof by or on behalf of the Seller
      of
      either the original or a copy of such document certified by the applicable
      public recording office to be a true and complete copy of the
      original.

     

    In
      the
      event that the original lender’s title insurance policy has not yet been issued,
      the Seller shall deliver to the Purchaser or any assignee, transferee or
      designee of the Purchaser a written commitment or interim binder or preliminary
      report of title issued by the title insurance or escrow company. The Seller
      shall deliver such original title insurance policy to the Purchaser or any
      assignee, transferee or designee of the Purchaser promptly upon receipt by
      the
      Seller, if any.

     

    Each
      original document relating to a Mortgage Loan which is not delivered to the
      Purchaser or its assignee, transferee or designee, if held by the Seller, shall
      be so held for the benefit of the Purchaser, its assignee, transferee or
      designee.

     

    In
      connection with the assignment of any Mortgage Loan registered on the MERS®
System, the Seller further agrees that it will cause, at the Seller’s own
      expense, within 30 days after the Closing Date, the MERS® System to indicate
      that such Mortgage Loans have been assigned by the Seller to the Purchaser
      and
      by the Purchaser to the Trustee in accordance with this Agreement for the
      benefit of the Certificateholders by including (or deleting, in the case of
      Mortgage Loans which are repurchased in accordance with this Agreement) in
      such
      computer files (a) the code in the field which identifies the specific Trustee
      and (b) the code in the field “Pool Field” which identifies the series of the
      Certificates issued in connection with such Mortgage Loans. The Seller further
      agrees that it will not, and will not permit the Servicers or the Master
      Servicer to alter the codes referenced in this paragraph with respect to any
      Mortgage Loan during the term of this Agreement unless and until such Mortgage
      Loan is repurchased in accordance with the terms of this Agreement or the
      Pooling and Servicing Agreement.

     

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

    (c) Acceptance
      of Mortgage Loans.
      The
      documents delivered pursuant to Section 4(b) hereof shall be reviewed by the
      Purchaser or any assignee, transferee or designee of the Purchaser at any time
      before or after the Closing Date (and with respect to each document permitted
      to
      be delivered after the Closing Date, within seven days of its delivery) to
      ascertain that all required documents have been executed and received and that
      such documents relate to the Mortgage Loans identified on the Closing
      Schedule.

     

    (d) Transfer
      of Interest in Agreements.
      The
      Purchaser has the right to assign its interest under this Agreement, in whole
      or
      in part, to the Trustee, as may be required to effect the purposes of the
      Pooling and Servicing Agreement, without the consent of the Seller, and the
      assignee shall succeed to the rights and obligations hereunder of the Purchaser.
      Any expense reasonably incurred by or on behalf of the Purchaser or the Trustee
      in connection with enforcing any obligations of the Seller under this Agreement
      will be promptly reimbursed by the Seller.

     

    (e) Examination
      of Mortgage Files.
      Prior
      to the Closing Date, the Seller shall either (i) deliver in escrow to the
      Purchaser or to any assignee, transferee or designee of the Purchaser for
      examination the Mortgage File pertaining to each Mortgage Loan, or (ii) make
      such Mortgage Files available to the Purchaser or to any assignee, transferee
      or
      designee of the Purchaser for examination. Such examination may be made by
      the
      Purchaser or the Trustee, and their respective designees, upon reasonable notice
      to the Seller during normal business hours before the Closing Date and within
      sixty (60) days after the Closing Date.  If any such person makes such
      examination prior to the Closing Date and identifies any Mortgage Loans that
      do
      not conform to the requirements of the Purchaser as described in this Agreement,
      such Mortgage Loans shall be deleted from the Closing Schedule.  The
      Purchaser may, at its option and without notice to the Seller, purchase all
      or
      part of the Mortgage Loans without conducting any partial or complete
      examination.  The fact that the Purchaser or any person has conducted
      or has failed to conduct any partial or complete examination of the Mortgage
      Files shall not affect the rights of the Purchaser or any assignee, transferee
      or designee of the Purchaser to demand repurchase or other relief as provided
      herein or under the Pooling and Servicing Agreement.

     

    SECTION
      5. Representations,
      Warranties and Covenants of the Seller.

     

    The
      Seller hereby represents and warrants to the Purchaser, as of the date hereof
      and as of the Closing Date, and covenants, that:

     

    (i) The
      Seller is a Delaware corporation with full corporate power and authority to
      conduct its business as presently conducted by it to the extent material to
      the
      consummation of the transactions contemplated herein. The Agreement has been
      duly authorized, executed and delivered by the Seller. The Seller had the full
      corporate power and authority to own the Mortgage Loans and to transfer and
      convey the Mortgage Loans to the Purchaser and has the full corporate power
      and
      authority to execute and deliver, engage in the transactions contemplated by,
      and perform and observe the terms and conditions of this Agreement;

     

    (ii) The
      Seller has duly authorized the execution, delivery and performance of this
      Agreement, has duly executed and delivered this Agreement, and this Agreement,
      assuming due authorization, execution and delivery by the Purchaser, constitutes
      a legal, valid and binding obligation of the Seller, enforceable against it
      in
      accordance with its terms except as the enforceability thereof may be limited
      by
      bankruptcy, insolvency or reorganization or by general principles of
      equity;

     

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

    (iii) The
      execution, delivery and performance of this Agreement by the Seller (x) does
      not
      conflict and will not conflict with, does not breach and will not result in
      a
      breach of and does not constitute and will not constitute a default (or an
      event, which with notice or lapse of time or both, would constitute a default)
      under (A) any terms or provisions of the organizational documents of the Seller,
      (B) any term or provision of any material agreement, contract, instrument or
      indenture, to which the Seller is a party or by which the Seller or any of
      its
      property is bound, or (C) any law, rule, regulation, order, judgment, writ,
      injunction or decree of any court or governmental authority having jurisdiction
      over the Seller or any of its property and (y) does not create or impose and
      will not result in the creation or imposition of any lien, charge or encumbrance
      (other than any created hereby in favor of the Purchaser and its assignees)
      which would have a material adverse effect upon the Mortgage Loans or any
      documents or instruments evidencing or securing the Mortgage Loans;

     

    (iv) No
      consent, approval, authorization or order of, registration or filing with,
      or
      notice on behalf of the Seller to any governmental authority or court is
      required, under federal laws or the laws of the State of New York, for the
      execution, delivery and performance by the Seller of, or compliance by the
      Seller with, this Agreement or the consummation by the Seller of any other
      transaction contemplated hereby and by the Pooling and Servicing Agreement;
      provided, however, that the Seller makes no representation or warranty regarding
      federal or state securities laws in connection with the sale or distribution
      of
      the Certificates;

     

    (v) The
      Seller is not in violation of, and the execution and delivery of this Agreement
      by the Seller and its performance and compliance with the terms of this
      Agreement will not constitute a violation with respect to, any order or decree
      of any court or any order or regulation of any federal, state, municipal or
      governmental agency having jurisdiction over the Seller or its assets, which
      violation might have consequences that would materially and adversely affect
      the
      condition (financial or otherwise) or the operation of the Seller or its assets
      or might have consequences that would materially and adversely affect the
      performance of its obligations and duties hereunder;

     

    (vi) The
      Seller does not believe, nor does it have any reason or cause to believe, that
      it cannot perform each and every covenant contained in this
      Agreement;

     

    (vii) Immediately
      prior to the sale of the Mortgage Loans to the Purchaser as herein contemplated,
      the Seller was the owner of the related Mortgage and the indebtedness evidenced
      by the related Mortgage Note, and, upon the payment to the Seller of the
      Purchase Price, in the event that the Seller retains or has retained record
      title, the Seller shall retain such record title to each Mortgage, each related
      Mortgage Note and the related Mortgage Files with respect thereto in trust
      for
      the Purchaser as the owner thereof from and after the date hereof;

     

    
      
        
        

      

      
        -6-

        
          

        

      

      
        
        

      

    

    (viii) There
      are
      no actions or proceedings against, or investigations known to it of, the Seller
      before any court, administrative or other tribunal (A) that might prohibit
      its
      entering into this Agreement, (B) seeking to prevent the sale of the Mortgage
      Loans by the Seller or the consummation of the transactions contemplated by
      this
      Agreement or (C) that might prohibit or materially and adversely affect the
      performance by the Seller of its obligations under, or validity or
      enforceability of, this Agreement;

     

    (ix) The
      consummation of the transactions contemplated by this Agreement are in the
      ordinary course of business of the Seller, and the transfer, assignment and
      conveyance of the Mortgage Notes and the Mortgages by the Seller pursuant to
      this Agreement are not subject to the bulk transfer or any similar statutory
      provisions in effect in any relevant jurisdiction, except any as may have been
      complied with;

     

    (x) The
      Seller has not dealt with any broker, investment banker, agent or other person,
      except for the Purchaser or any of its affiliates, that may be entitled to
      any
      commission or compensation in connection with the sale of the Mortgage Loans
      (except that an entity that previously financed the Seller’s ownership of the
      Mortgage Loans may be entitled to a fee to release its security interest in
      the
      Mortgage Loans, which fee shall have been paid and which security interest
      shall
      have been released on or prior to the Closing Date);

     

    (xi) There
      is
      no litigation currently pending or, to the best of the Seller’s knowledge
      without independent investigation, threatened against the Seller that would
      reasonably be expected to adversely affect the transfer of the Mortgage Loans,
      the issuance of the Certificates or the execution, delivery, performance or
      enforceability of this Agreement, or that would result in a material adverse
      change in the financial condition of the Seller; and

     

    (xii) The
      information set forth in the applicable part of the Closing Schedule relating
      to
      the existence of a Prepayment Charge is complete, true and correct in all
      material respects at the date or dates respecting which such information is
      furnished and each Prepayment Charge is permissible and enforceable in
      accordance with its terms upon the mortgagor’s full and voluntary principal
      prepayment under applicable law, except to the extent that: (1) the
      enforceability thereof may be limited by bankruptcy, insolvency, moratorium,
      receivership and other similar laws relating to creditors’ rights; (2) the
      collectability thereof may be limited due to acceleration in connection with
      a
      foreclosure or other involuntary prepayment; or (3) subsequent changes in
      applicable law may limit or prohibit enforceability thereof under applicable
      law.

     

    SECTION
      6. Representations
      and Warranties of the Seller Relating to the Mortgage Loans.

     

    The
      Seller hereby represents and warrants to the Purchaser that as to each Mortgage
      Loan as of the Closing Date:

     

    (i) Information
      provided to the Rating Agencies, including the loan level detail, is true and
      correct according to the Rating Agency requirements;

     

    
      
        
        

      

      
        -7-

        
          

        

      

      
        
        

      

    

    (ii) No
      error,
      omission, misrepresentation, negligence, fraud or similar occurrence with
      respect to a Mortgage Loan has taken place on the part of any person, including
      without limitation the Mortgagor, any appraiser, any builder or developer,
      or
      any other party involved in the origination of the Mortgage Loan or in the
      application of any insurance in relation to such Mortgage Loan;

     

    (iii) Except
      as
      set forth on the Closing Schedule, all payments required to be made prior to
      the
      Cut-off Date with respect to each Mortgage Loan have been made;

     

    (iv) Each
      Group I Mortgage Loan is exclusively secured by single-family (1-4 unit)
      residential housing, and no Group I Mortgage Loan is secured by multifamily,
      commercial, industrial, agricultural or undeveloped property, or on any property
      located anywhere outside the continental United States, Alaska, Hawaii, Puerto
      Rico, the Virgin Islands or Guam;

     

    (v) There
      are
      no delinquent taxes, assessment liens or insurance premiums affecting the
      related Mortgaged Property;

     

    (vi) The
      terms
      of the Mortgage Note and the Mortgage have not been materially impaired, waived,
      altered or modified in any respect, except by written instruments, recorded
      in
      the applicable public recording office if necessary to maintain the lien
      priority of the Mortgage. The substance of any such waiver, alteration or
      modification has been approved by the title insurer, to the extent required
      by
      the related policy. No Mortgagor has been released, in whole or in part, except
      in connection with an assumption agreement (approved by the title insurer to
      the
      extent required by the policy) and which assumption agreement has been delivered
      to the Trustee;

     

    (vii) The
      Mortgaged Property is insured against loss by fire and hazards of extended
      coverage (excluding earthquake insurance) in an amount which is at least equal
      to the lesser of (i) the amount necessary to compensate for any damage or loss
      to the improvements which are a part of such property on a replacement cost
      basis or (ii) the outstanding principal balance of the Mortgage Loan. If the
      Mortgaged Property is in an area identified on a flood hazard map or flood
      insurance rate map issued by the Federal Emergency Management Agency as having
      special flood hazards (and such flood insurance has been made available), a
      flood insurance policy meeting the requirements of the current guidelines of
      the
      Federal Insurance Administration is in effect. All such insurance policies
      contain a standard mortgagee clause naming the originator of the Mortgage Loan,
      its successors and assigns as mortgagee and the Seller has not engaged in any
      act or omission which would impair the coverage of any such insurance policies.
      Except as may be limited by applicable law, the Mortgage obligates the Mortgagor
      thereunder to maintain all such insurance at the Mortgagor’s cost and expense,
      and on the Mortgagor’s failure to do so, authorizes the holder of the Mortgage
      to maintain such insurance at Mortgagor’s cost and expense and to seek
      reimbursement therefor from the Mortgagor;

     

    (viii) Each
      Mortgage Loan and the related Prepayment Charge, if any, complied in all
      material respects with any and all requirements of any federal, state or local
      law including, without limitation, usury, truth in lending, anti-predatory
      lending, real estate settlement procedures, consumer credit protection, equal
      credit opportunity, fair housing, fair lending or disclosure laws applicable
      to
      the origination and servicing of the Mortgage Loans and the consummation of
      the
      transactions contemplated hereby will not involve the violation of any such
      laws;

     

    
      
        
        

      

      
        -8-

        
          

        

      

      
        
        

      

    

    (ix) The
      Mortgage has not been satisfied, cancelled, subordinated (other than with
      respect to second lien Mortgage Loans, the subordination to the first lien)
      or
      rescinded, in whole or in part, and the Mortgaged Property has not been released
      from the lien of the Mortgage, in whole or in part, nor has any instrument
      been
      executed that would effect any such satisfaction, cancellation, subordination,
      rescission or release;

     

    (x) The
      Mortgage was recorded or was submitted for recording in accordance with all
      applicable laws and is a valid, existing and enforceable first or second lien
      on
      the Mortgaged Property including all improvements on the Mortgaged
      Property;

     

    (xi) The
      Mortgage Note and the related Mortgage are genuine and each is the legal, valid
      and binding obligation of the maker thereof, insured under the related title
      policy, and enforceable in accordance with its terms, except to the extent
      that
      the enforceability thereof may be limited by a bankruptcy, insolvency or
      reorganization;

     

    (xii) The
      Seller is the sole legal, beneficial and equitable owner of the Mortgage Note
      and the Mortgage and has the full right to convey, transfer and sell the
      Mortgage Loan to the Purchaser free and clear of any encumbrance, equity, lien
      (other than with respect to second lien Mortgage Loans, the subordination to
      the
      related first lien), pledge, charge, claim or security interest and immediately
      upon the sale, assignment and endorsement of the Mortgage Loans from the Seller
      to the Purchaser, the Purchaser shall have good and indefeasible title to and
      be
      the sole legal owner of the Mortgage Loans subject only to any encumbrance,
      equity, lien, pledge, charge, claim or security interest arising out of the
      Purchaser’s actions;

     

    (xiii) Unless
      the Mortgaged Property is located in the State of Iowa and an attorney’s
      certificate and/or a certificate of title guaranty has been obtained, each
      Mortgage Loan is covered by a valid and binding American Land Title Association
      lender’s title insurance policy issued by a title insurer qualified to do
      business in the jurisdiction where the Mortgaged Property is located. No claims
      have been filed under such lender’s title insurance policy, and the Seller has
      not done, by act or omission, anything that would impair the coverage of the
      lender’s title insurance policy;

     

    (xiv) There
      is
      no material default, breach, violation event or event of acceleration existing
      under the Mortgage or the Mortgage Note and no event which, with the passage
      of
      time or with notice and the expiration of any grace or cure period, would
      constitute a material default, breach, violation or event of acceleration,
      and
      the Seller has not, nor has its predecessors, waived any material default,
      breach, violation or event of acceleration;

     

    (xv) There
      are
      no mechanics’ or similar liens or claims which have been filed for work, labor
      or material provided to the related Mortgaged Property prior to the origination
      of the Mortgage Loan which are or may be liens prior to, or equal or coordinate
      with, the lien of the related Mortgage, except as may be disclosed in the
      related title policy;

     

     

    
      
        
        

      

      
        -9-

        
          

        

      

      
        
        

      

    

    (xvi) Except
      with respect to approximately 24.57% of the Group I Mortgage Loans and
      approximately 43.15% of the Group II Mortgage Loans, in each case, by aggregate
      principal balance as of the Cut-off Date, which are interest-only loans and
      approximately 29.96% of the Group I Mortgage Loans and approximately 27.85%
      of
      the Group II Mortgage Loans, in each case, by aggregate principal balance as
      of
      the Cut-off Date, which are balloon loans, each Mortgage Note is payable on
      the
      first day of each month in equal monthly installments of principal and interest
      (subject to adjustment in the case of the adjustable rate Mortgage Loans),
      with
      interest calculated on a 30/360 basis and payable in arrears, sufficient to
      amortize the Mortgage Loan fully by the stated maturity date over an original
      term from commencement of amortization to not more than 30 years (other than
      the
      Mortgage Loans which have an original term to maturity of 40 years) and no
      Mortgage Loan permits negative amortization;

     

    (xvii) The
      servicing practices used in connection with the servicing of the Mortgage Loans
      have been in all respects reasonable and customary in the mortgage servicing
      industry of like mortgage loan servicers, servicing similar subprime mortgage
      loans originated in the same jurisdiction as the Mortgaged
      Property;

     

    (xviii) At
      the
      time of origination of the Mortgage Loan there was no proceeding pending for
      the
      total or partial condemnation of the Mortgaged Property and, as of the date
      such
      Mortgage Loan was purchased by the Purchaser, to the best of the Purchaser’s
      knowledge there is no proceeding pending for the total or partial condemnation
      of the Mortgaged Property;

     

    (xix) The
      Mortgage and related Mortgage Note contain customary and enforceable provisions
      such as to render the rights and remedies of the holder thereof adequate for
      the
      realization against the Mortgaged Property of the benefits of the security
      provided thereby, including, (a) in the case of a Mortgage designated as a
      deed
      of trust, by trustee’s sale, and (b) otherwise by judicial
      foreclosure;

     

    (xx) The
      Mortgage Note is not and has not been secured by any collateral except the
      lien
      of the related Mortgage referred to in subsection (x) above;

     

    (xxi) In
      the
      event the Mortgage constitutes a deed of trust, a trustee, duly qualified under
      applicable law to serve as such, has been properly designated and currently
      so
      serves and is named in the Mortgage, and no fees or expenses are or will become
      payable by the Seller to the trustee under the deed of trust, except in
      connection with a trustee’s sale after default by the Mortgagor;

     

    (xxii) The
      Mortgage Loan is not subject to any valid right of rescission, set-off,
      counterclaim or defense, including without limitation the defense of usury,
      nor
      will the operation of any of the terms of the Mortgage Note or the Mortgage,
      or
      the exercise of any right thereunder, render either the Mortgage Note or the
      Mortgage unenforceable, in whole or in part, or subject to any such right of
      rescission, set-off, counterclaim or defense, including without limitation
      the
      defense of usury, and no such right of rescission, set-off, counterclaim or
      defense has been asserted with respect thereto, subject to bankruptcy,
      insolvency, moratorium, receivership and other similar laws relating to
      creditor’s rights generally;

     

    
      
        
        

      

      
        -10-

        
          

        

      

      
        
        

      

    

    (xxiii) The
      Mortgage Loans were underwritten in accordance with the related originator’s
      underwriting guidelines in effect at the time the Mortgage Loans were originated
      (the “Applicable Underwriting Guidelines”), except with respect to certain of
      those Mortgage Loans which had compensating factors permitting a deviation from
      the Applicable Underwriting Guidelines;

     

    (xxiv) The
      Mortgaged Property is free of material damage and waste, excepting therefrom
      any
      Mortgage Loan subject to an escrow withhold as shown on the Closing
      Schedule;

     

    (xxv) All
      of
      the improvements which were included in determining the appraised value of
      the
      Mortgaged Property lie wholly within the Mortgaged Property’s boundary lines and
      no improvements on adjoining properties encroach upon the Mortgaged Property,
      excepting therefrom: (i) any encroachment insured against in the lender’s title
      insurance policy identified in subsection (xiii), (ii) any encroachment
      generally acceptable to subprime mortgage loan originators doing business in
      the
      same jurisdiction as the Mortgaged Property, and (iii) any encroachment which
      does not materially interfere with the benefits of the security intended to
      be
      provided by such Mortgage;

     

    (xxvi) All
      parties to the Mortgage Note had the legal capacity to execute the Mortgage
      Note
      and the Mortgage, and the Mortgage Note and the Mortgage have been duly executed
      by such parties;

     

    (xxvii) To
      the
      best of the Seller’s knowledge, at the time of origination of the Mortgage Loan,
      no appraised improvement located on or being part of the Mortgaged Property
      was
      in violation of any applicable zoning law or regulation and all inspections,
      licenses and certificates required in connection with the origination of any
      Mortgage Loan with respect to the occupancy of the Mortgaged Property, have
      been
      made or obtained from the appropriate authorities;

     

    (xxviii) No
      Mortgagor has notified the Seller of any relief requested or allowed under
      the
      Servicemembers Civil Relief Act;

     

    (xxix) All
      parties which have held an interest in the Mortgage Loan are (or during the
      period in which they held and disposed of such interest, were) (1) in compliance
      with any and all applicable licensing requirements of the state wherein the
      Mortgaged Property is located, (2) organized under the laws of such state,
      (3)
      qualified to do business in such state, (4) a federal savings and loan
      association or national bank, (5) not doing business in such state, or (6)
      exempt from the applicable licensing requirements of such state;

     

    (xxx) The
      Mortgage File contains an appraisal of the related Mortgaged Property which
      was
      made prior to the approval of the Mortgage Loan by a qualified appraiser, duly
      appointed by the related originator and was made in accordance with the
      Financial Institutions Reform, Recovery, and Enforcement Act of 1989 and the
      Uniform Standards of Professional Appraisal Practice;

     

    
      
        
        

      

      
        -11-

        
          

        

      

      
        
        

      

    

    (xxxi) Except
      as
      may otherwise be limited by applicable law, the Mortgage contains a provision
      for the acceleration of the payment of the unpaid principal balance of the
      Mortgage Loan in the event that the Mortgaged Property is sold or transferred
      without the prior written consent of the Mortgagee thereunder;

     

    (xxxii) The
      Mortgage Loan does not contain any provision which would constitute a “buydown”
provision and pursuant to which Monthly Payments are paid or partially paid
      with
      funds deposited in a separate account established by the related originator,
      the
      Mortgagor or anyone on behalf of the Mortgagor, or paid by any source other
      than
      the Mortgagor. The Mortgage Loan is not a “graduated payment mortgage loan” and
      the Mortgage loan does not have a shared appreciation or other contingent
      interest feature;

     

    (xxxiii) To
      the
      best of the Seller’s knowledge there is no action or proceeding directly
      involving the Mortgaged Property presently pending in which compliance with
      any
      environmental law, rule or regulation is at issue and the Seller has received
      no
      notice of any condition at the Mortgaged Property which is reasonably likely
      to
      give rise to an action or proceeding in which compliance with any environmental
      law, rule or regulation is at issue;

     

    (xxxiv) Each
      Mortgage Loan is an obligation which is principally secured by an interest
      in
      real property within the meaning of Treasury Regulation section
      1.860G-2(a);

     

    (xxxv) Each
      Mortgage Loan (a) is directly secured by a first or second lien on, and consists
      of a single parcel of, real property with an attached, detached or semi-detached
      one-to-four family residence erected thereon, a townhouse, row house or an
      individual condominium unit in a condominium project, or an individual unit
      in a
      planned unit development (“PUD”). Any unit in a PUD or condominium project
      conforms to the requirements of the Applicable Underwriting Guidelines regarding
      such dwellings. No residence or dwelling is a mobile home or a manufactured
      dwelling unless it is a manufactured dwelling, which is permanently affixed
      to a
      foundation and treated as “real estate” under applicable law. No Mortgaged
      Property is used for commercial purposes. Mortgaged Properties which contain
      a
      home office shall not be considered as being used for commercial purposes as
      long as the Mortgaged Property has not been altered for commercial purposes
      and
      is not storing any chemicals or raw materials other than those commonly used
      for
      homeowner repair, maintenance and/or household purposes;

     

    (xxxvi) The
      Mortgage Interest Rate with respect to the Adjustable Rate Mortgage Loans is
      subject to adjustment at the time and in the amounts as are set forth in the
      related Mortgage Note;

     

    (xxxvii) No
      Mortgage Loan contains a provision whereby the Mortgagor can convert an
      Adjustable Rate Mortgage Loan into a Fixed Rate Mortgage Loan;

     

    (xxxviii) 
      With
      respect to each Group I Mortgage Loan, no Mortgagor obtained a prepaid
      single-premium credit-life, credit disability, credit unemployment or credit
      property insurance policy in connection with the origination of such Group
      I
      Mortgage Loan;

     

    
      
        
        

      

      
        -12-

        
          

        

      

      
        
        

      

    

    (xxxix) With
      respect to any Group I Mortgage Loan that contains a provision permitting
      imposition of a penalty upon a prepayment prior to maturity: (a) such Group
      I
      Mortgage Loan provides some benefit to the Mortgagor (e.g., a rate or fee
      reduction) in exchange for accepting such prepayment penalty; (b) such Group
      I
      Mortgage Loan’s originator had a written policy of offering the Mortgagor, or
      requiring third-party brokers to offer the Mortgagor, the option of obtaining
      a
      mortgage loan that did not require payment of such a penalty; (c) the prepayment
      penalty was adequately disclosed to the Mortgagor pursuant to applicable state
      and federal law; (d) no Group I Mortgage Loan originated on or after October
      1,
      2002 will provide for prepayment penalties for a term in excess of three years
      and any Group I Mortgage Loans originated prior to such date will not provide
      for prepayment penalties for a term in excess of five years; in each case unless
      such Group I Mortgage Loan was modified to reduce the prepayment period to
      no
      more than three years (in the case of subprime loans) or five years (in the
      case
      of non-subprime loans) from the date of the Mortgage Note and the Mortgagor
      was
      notified in writing of such reduction in prepayment period; and (e) such
      prepayment penalty shall not be imposed in any instance where the Group I
      Mortgage Loan is accelerated or paid off in connection with the workout of
      a
      delinquent Mortgage or due to the Mortgagor’s default, notwithstanding that the
      terms of such Group I Mortgage Loan or state or federal law might permit the
      imposition of such penalty;

     

    (xl) No
      Mortgage Loan is subject to the Home Ownership and Equity Protection Act of
      1994, as amended (“HOEPA”) or any comparable law and no Mortgage Loan is
      classified and/or defined as “high cost home”, “covered” (excluding home loans
      defined as “covered home loans” in the New Jersey Home Ownership Security Act of
      2002 that were originated between November 26, 2003 and July 7, 2004) “high risk
      home” or “predatory” loan under any other federal, state or local law (or a
      similarly classified loan using different terminology under a law imposing
      heightened regulatory scrutiny or additional legal liability for residential
      mortgage loans having high interest rates, points and/or fees). No Group I
      Mortgage Loan secured by the Mortgagor’s principal residence has an “annual
      percentage rate” or “total points and fees” payable by the Mortgagor (as each
      such term is defined under HOEPA) that equal or exceed the applicable thresholds
      defined under HOEPA (Section 32 of Regulation Z, 12 C.F.R. Section
      226.32(a)(1)(i) and (ii));

     

    (xli) There
      is
      no Mortgage Loan that was originated or modified on or after October 1, 2002
      and
      before March 7, 2003, which is secured by property located in the State of
      Georgia. There is no such Mortgage Loan underlying the Certificate that was
      originated on or after March 7, 2003, which is a “high cost home loan” as
      defined under the Georgia Fair Lending Act;

     

    (xlii) No
      Group
      I Mortgage Loan is secured by a condominium unit that is part of a condominium
      development that operates as, or holds itself out to be, a condominium hotel
      (“condotel”), regardless of whether the unit itself is being used as a condotel
      unit.;

     

    (xliii) No
      Mortgage Loan is a “High-Cost Home Loan” as defined in the Indiana Home Loan
      Practices Act, effective January 1, 2005 (Ind. Code Ann. Sections 24-9-1 through
      24-9-9);

     

    
      
        
        

      

      
        -13-

        
          

        

      

      
        
        

      

    

    (xliv) There
      is
      no Mortgage Loan that (a) is secured by property located in the State of
      Kentucky; (b) was originated on or after June 24, 2003, and (c) which is a
“High
      Cost Home Loan” as defined under Kentucky State Statute KRS 360.100, effective
      as of June 24, 2003;

     

    (xlv) There
      is
      no Mortgage Loan that (a) is secured by property located in the State of
      Arkansas, (b) has a note date on or after July 16, 2003, and (c) which is a
      “High Cost Home Loan” as defined under the Arkansas Home Loan Protection Act,
      effective as of July 16, 2003 (Act 1340 of 2003);

     

    (xlvi) The
      related Servicer for each Group I Mortgage Loan has fully furnished, and will
      fully furnish accurate and complete information (i.e., favorable and
      unfavorable) on its borrower credit files to Equifax, Experian, and Trans Union
      Credit Information Company (three of the credit repositories), on a monthly
      basis and in accordance with the Fair Credit Reporting Act and its implementing
      regulations;

     

    (xlvii) The
      original principal balance of each Group I Mortgage Loan which is secured by
      a
      first or second lien on the related Mortgaged Property is within Freddie Mac’s
      dollar amount limits for conforming one-to-four family mortgage loans. No Group
      I Mortgage Loan which is secured by a first lien has an original principal
      balance that exceeds the applicable Freddie Mac loan limit; 

     

    (xlviii) No
      Mortgage Loan is a “High-Cost Home Loan” as defined in the New Jersey Home
      Ownership Act effective November 27, 2003 (N.J.S.A. 46:10B-22 et seq.);

     

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

     

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

     

    (li) No
      Mortgage Loan originated in the City of Los Angeles is subject to the City
      of
      Los Angeles California Ordinance 175008 as a home loan;

     

    (lii) No
      Mortgage Loan is a “High Cost Home Loan” as defined under the Maine House Bill
      383 L.D. 494, effective as of September 13, 2003;

     

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

     

    (liv) No
      Mortgage Loan is a “home loan” in the state of Nevada; 

     

    (lv) No
      Mortgage Loan is a “Section 10 mortgage loan” as defined in Oklahoma House Bill
      1574;

     

    (lvi) With
      respect to any Group I Mortgage Loan originated on or after August 1, 2004,
      neither the related Mortgage nor the related Mortgage Note requires the
      Mortgagor to submit to arbitration to resolve any dispute arising out of or
      relating in any way to the Mortgage Loan transaction;

     

    
      
        
        

      

      
        -14-

        
          

        

      

      
        
        

      

    

    (lvii) No
      Mortgage Loan is a High Cost Loan or Covered Loan, as applicable (as such terms
      are defined in the then current Standard & Poor’s LEVELS®
      Glossary
      which is now Version 5.7, Appendix E (attached hereto as Exhibit
      2))
      and no
      Mortgage Loan originated on or after October 1, 2002 through March 6, 2003
      is
      governed by the Georgia Fair Lending Act;

     

    (lviii) No
      Mortgage Loan is a “High-Cost Home Mortgage Loan” as defined in the
      Massachusetts Predatory Home Loan Practices Act, effective November 7, 2004
      (Mass. Ann. Laws Ch. 183C);

     

    (lix) [Reserved];

     

    (lx) [Reserved];

     

    (lxi) With
      respect to each Group I Mortgage Loan, the methodology used in underwriting
      the
      extension of credit for each Group I Mortgage Loan did not rely solely on the
      extent of the Mortgagor’s equity in the collateral as the principal determining
      factor in approving such extension of credit. With respect to each Group I
      Mortgage Loan, the methodology employed objective criteria such as the
      Mortgagor’s income, assets and liabilities, to the proposed mortgage payment
      and, based on such methodology, the Group I Mortgage Loan's originator made
      a
      reasonable determination that at the time of origination the Mortgagor had
      the
      ability to make timely payments on such Group I Mortgage Loan;

     

    (lxii) [Reserved;

     

    (lxiii) [Reserved];

     

    (lxiv) With
      respect to any Group I Mortgage Loans that are on manufactured housing, upon
      the
      origination of each such Group I Mortgage Loan the manufactured housing unit
      either: (i) will be the principal residence of the Mortgagor or (ii) will be
      classified as real property under applicable state law; 

     

    (lxv) [Reserved];

     

    (lxvi) With
      respect to any Mortgage Loan that is secured by a second lien on the related
      Mortgaged Property, either (i) no consent for the Mortgage Loan is required
      by
      the holder of any related senior lien or (ii) such consent has been obtained
      and
      is contained in the Mortgage File;

     

    (lxvii) With
      respect to each Group I Mortgage Loan, the Mortgagor was not encouraged or
      required to select a mortgage loan product offered by the Group I Mortgage
      Loan's originator which is a higher cost product designed for less creditworthy
      borrowers, taking into account such facts as, without limitation, the Group
      I
      Mortgage Loan's requirements and the Mortgagor’s credit history, income, assets
      and liabilities. For a Mortgagor who seeks financing through a Group I Mortgage
      Loan originator’s higher-priced subprime lending channel, the Mortgagor was
      directed towards or offered the Group I Mortgage Loan originator’s standard
      mortgage line if the Mortgagor was able to qualify for one of the standard
      products;

     

    
      
        
        

      

      
        -15-

        
          

        

      

      
        
        

      

    

    (lxviii) With
      respect to a Mortgage Loan which is a second lien, as of the date hereof, the
      Seller has not received a notice of default of a senior lien on the related
      Mortgaged Property which has not been cured;

     

    (lxix) With
      respect to a Group I Mortgage Loan which is a second lien, (a) such second
      lien
      Group I Mortgage Loan is secured by a one- to four-family residence that is
      the
      principal residence of the Mortgagor, (b) the origination amount for such second
      lien Group I Mortgage Loan did not exceed one-half of the one-unit limitation
      set forth by Freddie Mac for first lien mortgage loans i.e. $208,500 (in Alaska,
      Guam, Hawaii or Virgin Islands: $312,750), without regard to the number of
      units, and (c) the aggregate original principal balance for the first lien
      and
      the second lien mortgage loan does not exceed Freddie Mac’s applicable loan
      limits for first lien mortgage loans for properties of the same type as the
      related Mortgaged Property;

     

    (lxx) No
      Mortgagor of a Group I Mortgage Loan secured by the Mortgagor’s principal
      residence was charged “points and fees” in an amount greater than (a) $1,000 or
      (b) 5% of the principal amount of such Group I Mortgage Loan, whichever is
      greater. For purposes of this representation, “points and fees” (x) include
      origination, underwriting, broker and finder’s fees and charges that the lender
      imposed as a condition of making such Group I Mortgage Loan, whether they were
      paid to the lender or a third party; and (y) exclude bona fide discount points,
      fees paid for actual services rendered in connection with the origination of
      the
      mortgage (such as attorney’s fees, notaries fees and fees paid for property
      appraisals, credit reports, surveys, title examinations and extracts, flood
      and
      tax certifications, and home inspections); the cost of mortgage insurance or
      credit-risk price adjustments; the costs of title, hazard, and flood insurance
      policies; state and local transfer taxes or fees; escrow deposits for the future
      payment of taxes and insurance premiums; and other miscellaneous fees and
      charges, which miscellaneous fees and charges, in total, do not exceed 0.25
      percent of the loan amount;

     

    (lxxi) No
      selection procedures were used by the Seller that identified the Mortgage Loans
      as being less desirable or valuable than other comparable mortgage loans in
      the
      Seller’s portfolio;

     

    (lxxii) The
      information set forth in the Closing Schedule is true and correct in all
      material respects as of the Cut-off Date (except with respect to the last Due
      Date on which a Monthly Payment was actually applied to the unpaid Stated
      Principal Balance, which is true and correct in all material respects as of
      April 24, 2007); 

     

    (lxxiii) No
      Mortgage Loan is secured in whole or in part by the interest of the Mortgagor
      as
      a lessee under a ground lease of the related Mortgaged Property;
      and

     

    (lxxiv) With
      respect to any Group I Mortgage Loan for which the date of the related mortgage
      note is more than 1 year before the Closing Date, 

     

    (i) The
      Seller represents that it currently operates or actively participates in an
      on-going and active program or business (A) to originate mortgages, and/or
      (B)
      to make periodic purchases of mortgage loans from originators or other sellers,
      and/or (C) to issue and/or purchase securities or bonds supported by the
      mortgages, with a portion of the proceeds generated by such program or business
      being used to purchase or originate mortgages made to borrowers who
      are:

     

    
      
        
        

      

      
        -16-

        
          

        

      

      
        
        

      

    

    (a)
      low-income families (families with incomes of 80% or less of area median income)
      living in low-income areas (a census tract or block numbering area in which
      the
      median income does not exceed 80 percent of the area median income)
      and/or

     

    (b)
      very
      low-income families (families with incomes of 60% or less of area median
      income), and

     

    (ii)
      The
      Seller agrees that Freddie Mac for a period of two (2) years following the
      date
      of this Agreement may contact the Seller to confirm that it continues to operate
      or actively participate in the mortgage program or business and to obtain other
      nonproprietary information about the Seller’s activities that may assist Freddie
      Mac in completing its regulatory reporting requirements. The Seller will make
      reasonable efforts to provide such information to Freddie Mac.

     

    SECTION
      7. Repurchase
      Obligation for Defective Documentation and for Breach of Representation and
      Warranty.

     

    (a) The
      representations and warranties contained in Section 6 shall not be impaired
      by
      any review and examination of loan files or other documents evidencing or
      relating to the Mortgage Loans or any failure on the part of the Seller or
      the
      Purchaser to review or examine such documents and shall inure to the benefit
      of
      any assignee, transferee or designee of the Purchaser, including the Trustee
      for
      the benefit of the Certificateholders. With respect to the representations
      and
      warranties contained herein as to which the Seller has no knowledge, if it
      is
      discovered that the substance of any such representation and warranty was
      inaccurate as of the date such representation and warranty was made or deemed
      to
      be made, and such inaccuracy materially and adversely affects the value of
      the
      related Mortgage Loan or the interest therein of the Purchaser or the
      Purchaser’s assignee, transferee or designee, then notwithstanding the lack of
      knowledge by the Seller with respect to the substance of such representation
      and
      warranty being inaccurate at the time the representation and warranty was made,
      the Seller shall take such action described in the following paragraph in
      respect of such Mortgage Loan. Notwithstanding anything to the contrary
      contained herein, any breach of a representation or warranty contained in
      clauses (iv), (viii), (xxxviii), (xxxix), (xl), (xli), (xlii), (xlvi), (xlvii),
      (lvi), (lxi), (lxiv), (lxvii), (lxix) and/or (lxx) of Section 6 above, shall
      be
      automatically deemed to affect materially and adversely the interests of the
      Purchaser or the Purchaser’s assignee, transferee or designee.

     

    Upon
      discovery by the Seller, the Purchaser or any assignee, transferee or designee
      of the Purchaser of any materially defective document in, or that any material
      document was not transferred by the Seller, as listed on a Custodian’s
      preliminary exception report, as described in the Custodial Agreements, as
      part
      of any Mortgage File, or of a breach of any of the representations and
      warranties contained in Section 6 that materially and adversely affects the
      value of any Mortgage Loan or the interest therein of the Purchaser or the
      Purchaser’s assignee, transferee or designee, the party discovering such breach
      shall give prompt written notice to the Seller. Within sixty (60) days of its
      discovery or its receipt of notice of any such missing documentation that was
      not transferred by the Seller as described above, or of materially defective
      documentation, or any such breach of a representation and warranty, the Seller
      promptly shall deliver such missing document or cure such defect or breach
      in
      all material respects or, in the event the Seller cannot deliver such missing
      document or cannot cure such defect or breach, the Seller shall, within ninety
      (90) days of its discovery or receipt of notice of any such missing or
      materially defective documentation or of any such breach of a representation
      and
      warranty, either (i) repurchase the affected Mortgage Loan at the Purchase
      Price
      (as such term is defined in the Pooling and Servicing Agreement) or (ii)
      pursuant to the provisions of the Pooling and Servicing Agreement, cause the
      removal of such Mortgage Loan from the Trust Fund and substitute one or more
      Qualified Substitute Mortgage Loans. The Seller shall amend the Closing Schedule
      to reflect the withdrawal of such Mortgage Loan from the terms of this Agreement
      and the Pooling and Servicing Agreement. The Seller shall deliver to the
      Purchaser such amended Closing Schedule and shall deliver such other documents
      as are required by this Agreement or the Pooling and Servicing Agreement within
      five (5) days of any such amendment. Any repurchase pursuant to this Section
      7(a) shall be accomplished by transfer to an account designated by the Purchaser
      of the amount of the Purchase Price in accordance with Section 2.03 of the
      Pooling and Servicing Agreement. Any repurchase required by this Section shall
      be made in a manner consistent with Section 2.03 of the Pooling and Servicing
      Agreement.

     

    
      
        
        

      

      
        -17-

        
          

        

      

      
        
        

      

    

    (b) If
      the
      representation made by the Seller in Section 5(xii) is breached, the Seller
      shall not have the right or obligation to cure, substitute or repurchase the
      affected Mortgage Loan but shall remit to the related Servicer for deposit
      in
      the Collection Account, prior to the next succeeding Servicer Remittance Date,
      the amount of the Prepayment Charge indicated on the applicable part of the
      Closing Schedule to be due from the Mortgagor in the circumstances less any
      amount collected and remitted to the related Servicer for deposit into the
      Collection Account.

     

    (c) It
      is
      understood and agreed that the obligations of the Seller set forth in this
      Section 7 to cure or repurchase a defective Mortgage Loan (and to make payments
      pursuant to Section 7(b)) constitute the sole remedies of the Purchaser against
      the Seller respecting a missing document or a breach of the representations
      and
      warranties contained in Section 5(xii) or Section 6.

     

    SECTION
      8. Closing;
      Payment for the Mortgage Loans. The
      closing of the purchase and sale of the Mortgage Loans, the Swap
      Agreement
      and the
      Cap Agreements
      shall be
      held at the New York City office of Thacher Proffitt & Wood llp
      at 10:00
      a.m. New York City time on the Closing Date.

     

    The
      closing shall be subject to each of the following conditions:

     

    (a) All
      of
      the representations and warranties of the Seller under this Agreement shall
      be
      true and correct in all material respects as of the date as of which they are
      made and no event shall have occurred which, with notice or the passage of
      time,
      would constitute a default under this Agreement;

     

    
      
        
        

      

      
        -18-

        
          

        

      

      
        
        

      

    

    (b) The
      Purchaser shall have received, or the attorneys of the Purchaser shall have
      received in escrow (to be released from escrow at the time of closing), all
      closing documents as specified in Section 9 of this Agreement, in such forms
      as
      are agreed upon and acceptable to the Purchaser, duly executed by all
      signatories other than the Purchaser as required pursuant to the respective
      terms thereof;

     

    (c) The
      Seller shall have delivered or caused to be delivered and released to the
      Purchaser or to its designee, all documents (including without limitation,
      the
      Mortgage Loans) required to be so delivered by the Purchaser pursuant to Section
      2.01 of the Pooling and Servicing Agreement; and

     

    (d) All
      other
      terms and conditions of this Agreement and the Pooling and Servicing Agreement
      shall have been complied with.

     

    Subject
      to the foregoing conditions, the Purchaser shall deliver or cause to be
      delivered to the Seller on the Closing Date, against delivery and release by
      the
      Seller to the Trustee of all documents required pursuant to the Pooling and
      Servicing Agreement, the consideration for the Mortgage Loans as specified
      in
      Section 3 of this Agreement.

     

    SECTION
      9. Closing
      Documents.
      Without
      limiting the generality of Section 8 hereof, the closing shall be subject to
      delivery of each of the following documents:

     

    (a) An
      Officers’ Certificate of the Seller, dated the Closing Date, upon which the
      Purchaser and DBSI may rely with respect to certain facts regarding the sale
      of
      the Mortgage Loans by the Seller to the Purchaser;

     

    (b) An
      Opinion of Counsel of the Seller, dated the Closing Date and addressed to the
      Purchaser and DBSI;

     

    (c) Such
      opinions of counsel as the Rating Agencies or the Trustee may request in
      connection with the sale of the Mortgage Loans by the Seller to the Purchaser
      or
      the Seller’s execution and delivery of, or performance under, this Agreement;
      and

     

    (d) Such
      further information, certificates, opinions and documents as the Purchaser
      or
      DBSI may reasonably request.

     

    SECTION
      10. Costs.
      The
      Seller shall pay (or shall reimburse the Purchaser or any other Person to the
      extent that the Purchaser or such other Person shall pay) all costs and expenses
      incurred in connection with the transfer and delivery of the Mortgage
      Loans,
      including without limitation, fees for title policy endorsements and
      continuations, the fees and expenses of the Seller’s accountants and attorneys,
      the costs and expenses incurred in connection with producing the Servicers’ loan
      loss, foreclosure and delinquency experience, and the costs and expenses
      incurred in connection with obtaining the documents referred to in Sections
      9(a), 9(b) and 9(c), the costs and expenses of printing (or otherwise
      reproducing) and delivering this Agreement, the Pooling and Servicing Agreement,
      the Certificates, the prospectus and prospectus supplement, and any private
      placement memorandum relating to the Certificates and other related documents,
      the initial fees, costs and expenses of the Trustee, the fees and expenses
      of
      the Purchaser’s counsel in connection with the preparation of all documents
      relating to the securitization of the Mortgage Loans, the filing fee charged
      by
      the Securities and Exchange Commission for registration of the Certificates
      and
      the fees charged by any rating agency to rate the Certificates.  All
      other costs and expenses in connection with the transactions contemplated
      hereunder shall be borne by the party incurring such expense.

     

    
      
        
        

      

      
        -19-

        
          

        

      

      
        
        

      

    

     

    SECTION
      11. Servicing.
      The
      Mortgage Loans will be master serviced by the Master Servicer and serviced
      by
      Ocwen and GMAC under the Pooling and Servicing Agreement and serviced by
      Countrywide under the Flow Servicing Agreement, dated as of June 30, 2006
      between the Seller and Countrywide as modified by the Assignment, Assumption
      and
      Recognition Agreement, dated as of April 30, 2007 among the Seller, the
      Purchaser and Countrywide (collectively, the “Countrywide
      Agreement”),
      and
      the Seller has represented to the Purchaser that such Mortgage Loans are not
      subject to any other servicing agreements with third parties.  It is
      understood and agreed between the Seller and the Purchaser that the Mortgage
      Loans are to be delivered free and clear of any other servicing
      agreements.  Neither the Purchaser nor any affiliate of the Purchaser
      is servicing the Mortgage Loans under any such servicing agreement and,
      accordingly, neither the Purchaser nor any affiliate of the Purchaser is
      entitled to receive any fee for releasing the Mortgage Loans from any such
      servicing agreement.  The Seller shall arrange for the orderly
      transfer of such servicing to the Servicers.  For so long as the
      Servicers service the Mortgage Loans, the Servicers shall be entitled to a
      Servicing Fee and such other payments as provided for under the terms of the
      Pooling and Servicing Agreement.

     

    SECTION
      12. Mandatory
      Delivery; Grant of Security Interest.  The
      sale and delivery on the Closing Date of the Mortgage Loans (exclusive of the
      Servicing Rights) described on the Closing Schedule in accordance with the
      terms
      and conditions of this Agreement is mandatory.  It is specifically
      understood and agreed that each Mortgage Loan is unique and identifiable on
      the
      date hereof and that an award of money damages would be insufficient to
      compensate the Purchaser for the losses and damages incurred by the Purchaser
      in
      the event of the Seller’s failure to deliver the Mortgage Loans on or before the
      Closing Date.  The Seller hereby grants to the Purchaser a lien on and
      a continuing security interest in the Seller’s interest in each Mortgage Loan
      and each document and instrument evidencing each such Mortgage Loan to secure
      the performance by the Seller of its obligation hereunder, and the Seller agrees
      that it holds such Mortgage Loans in custody for the Purchaser, subject to
      the
      Purchaser’s (i) right, prior to the Closing Date, to reject any Mortgage Loan to
      the extent permitted by this Agreement and (ii) obligation to deliver or cause
      to be delivered the consideration for the Mortgage Loans pursuant to Section
      8
      hereof.  Any Mortgage Loans rejected by the Purchaser shall
      concurrently therewith be released from the security interest created
      hereby.  All rights and remedies of the Purchaser under this Agreement
      are distinct from, and cumulative with, any other rights or remedies under
      this
      Agreement or afforded by law or equity and all such rights and remedies may
      be
      exercised concurrently, independently or successively.

     

    
      
        
        

      

      
        -20-

        
          

        

      

      
        
        

      

    

    Notwithstanding
      the foregoing, if on the Closing Date, each of the conditions set forth in
      Section 8 hereof shall have been satisfied and the Purchaser shall not have
      paid
      or caused to be paid the Purchase Price, or any such condition shall not have
      been waived or satisfied and the Purchaser determines not to pay or cause to
      be
      paid the Purchase Price, the Purchaser shall immediately effect the redelivery
      of the Mortgage Loans, if delivery to the Purchaser has occurred, and the
      security interest created by this Section 12 shall be deemed to have been
      released.

     

    
      
        
        

      

      
        -21-

        
          

        

      

      
        
        

      

    

     

    SECTION
      13. Notices.  All
      demands, notices and communications hereunder shall be in writing and shall
      be
      deemed to have been duly given if personally delivered to or mailed by
      registered mail, postage prepaid, or transmitted by fax and, receipt of which
      is
      confirmed by telephone, if to the Purchaser, addressed to the Purchaser at
      6525
      Morrison Boulevard, Suite 318, Charlotte, North Carolina 28211, fax: (704)
      365-1362, Attention: Doris Hearn, or such other address as may hereafter be
      furnished to the Seller in writing by the Purchaser; and if to the Seller,
      addressed to the Seller at 60 Wall Street, New York, New York 10005, fax: (212)
      250-2740, Attention:  Michael Commaroto, or to such other address as
      the Seller may designate in writing to the Purchaser.

     

    SECTION
      14. Severability
      of Provisions.  Any
      part, provision, representation or warranty of this Agreement that is prohibited
      or that is held to be void or unenforceable shall be ineffective to the extent
      of such prohibition or unenforceability without invalidating the remaining
      provisions hereof.  Any part, provision, representation or warranty of
      this Agreement that is prohibited or unenforceable or is held to be void or
      unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
      to the extent of such prohibition or unenforceability without invalidating
      the
      remaining provisions hereof, and any such prohibition or unenforceability in
      any
      jurisdiction as to any Mortgage Loan shall not invalidate or render
      unenforceable such provision in any other jurisdiction.  To the extent
      permitted by applicable law, the parties hereto waive any provision of law
      which
      prohibits or renders void or unenforceable any provision hereof.

     

    SECTION
      15. Agreement
      of Parties.  The
      Seller and the Purchaser each agree to execute and deliver such instruments
      and
      take such actions as either of the others may, from time to time, reasonably
      request in order to effectuate the purpose and to carry out the terms of this
      Agreement and the Pooling and Servicing Agreement.

     

    SECTION
      16. Survival.  The
      Seller agrees that the representations, warranties and agreements made by it
      herein and in any certificate or other instrument delivered pursuant hereto
      shall be deemed to be relied upon by the Purchaser, notwithstanding any
      investigation heretofore or hereafter made by the Purchaser or on its behalf,
      and that the representations, warranties and agreements made by the Seller
      herein or in any such certificate or other instrument shall survive the delivery
      of and payment for the Mortgage Loans and shall continue in full force and
      effect, notwithstanding any restrictive or qualified endorsement on the Mortgage
      Notes and notwithstanding subsequent termination of this Agreement, the Pooling
      and Servicing Agreement or the Trust Fund.

     

    SECTION
      17. GOVERNING
      LAW.  THIS
      AGREEMENT AND THE RIGHTS, DUTIES, OBLIGATIONS AND RESPONSIBILITIES OF THE
      PARTIES HERETO SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS
      (EXCLUDING THE CHOICE OF LAW PROVISIONS) AND DECISIONS OF THE STATE OF NEW
      YORK.  THE
      PARTIES HERETO INTEND THAT THE PROVISIONS OF SECTION 5-1401 OF THE NEW YORK
      GENERAL OBLIGATIONS LAW SHALL APPLY TO THIS AGREEMENT.

     

    
      
        
        

      

      
        -22-

        
          

        

      

      
        
        

      

    

     

    SECTION
      18. Miscellaneous.
      This
      Agreement may be executed in two or more counterparts, each of which when so
      executed and delivered shall be an original, but all of which together shall
      constitute one and the same instrument.  This Agreement shall inure to
      the benefit of and be binding upon the parties hereto and their respective
      successors and assigns.  This Agreement supersedes all prior
      agreements and understandings relating to the subject matter
      hereof.  Neither this Agreement nor any term hereof may be changed,
      waived, discharged or terminated orally, but only by an instrument in writing
      signed by the party against whom enforcement of the change, waiver, discharge
      or
      termination is sought.  The headings in this Agreement are for
      purposes of reference only and shall not limit or otherwise affect the meaning
      hereof.

     

    It
      is the
      express intent of the parties hereto that the conveyance of the Mortgage Loans,
      the Swap Agreement and the Cap Agreements by the Seller to the Purchaser as
      provided in Section 4 hereof be, and be construed as, a sale of the Mortgage
      Loans, the Swap Agreement and the Cap Agreements by the Seller to the Purchaser
      and not as a pledge of the Mortgage Loans, the Swap Agreement and the Cap
      Agreements by the Seller to the Purchaser to secure a debt or other obligation
      of the Seller. However, in the event that, notwithstanding the aforementioned
      intent of the parties, the Mortgage Loans, the Swap Agreement and the Cap
      Agreements are held to be property of the Seller, then (a) it is the express
      intent of the parties that such conveyance be deemed a pledge of the Mortgage
      Loans, the Swap Agreement and the Cap Agreements by the Seller to the Purchaser
      to secure a debt or other obligation of the Seller and (b) (1) this Agreement
      shall also be deemed to be a security agreement within the meaning of Articles
      8
      and 9 of the New York Uniform Commercial Code; (2) the conveyance provided
      for
      in Section 4 hereof shall be deemed to be a grant by the Seller to the Purchaser
      of a security interest in all of the Seller’s right, title and interest in and
      to the Mortgage Loans, the Swap Agreement and the Cap Agreements and all amounts
      payable to the holders of the Mortgage Loans, the Swap Agreement and the Cap
      Agreements in accordance with the terms thereof and all proceeds of the
      conversion, voluntary or involuntary, of the foregoing into cash, instruments,
      securities or other property, including without limitation all amounts, other
      than investment earnings, from time to time held or invested in the Collection
      Account whether in the form of cash, instruments, securities or other property;
      (3) the possession by the Purchaser or its agent of Mortgage Notes, the related
      Mortgages and such other items of property that constitute instruments, money,
      negotiable documents or chattel paper shall be deemed to be “possession by the
      secured party” for purposes of perfecting the security interest pursuant to
      Section 9-305 of the New York Uniform Commercial Code; and (4) notifications
      to
      persons holding such property and acknowledgments, receipts or confirmations
      from persons holding such property shall be deemed notifications to, or
      acknowledgments, receipts or confirmations from, financial intermediaries,
      bailees or agents (as applicable) of the Purchaser for the purpose of perfecting
      such security interest under applicable law. Any assignment of the interest
      of
      the Purchaser pursuant to Section 4(d) hereof shall also be deemed to be an
      assignment of any security interest created hereby. The Seller and the Purchaser
      shall, to the extent consistent with this Agreement, take such actions as may
      be
      necessary to ensure that, if this Agreement were deemed to create a security
      interest in the Mortgage Loans, the Swap Agreement and the Cap Agreements,
      such
      security interest would be deemed to be a perfected security interest of first
      priority under applicable law and will be maintained as such throughout the
      term
      of this Agreement and the Pooling and Servicing Agreement.

     

    
      
        
        

      

      
        -23-

        
          

        

      

      
        
        

      

    

     

    SECTION
      19. Third
      Party Beneficiary.  The
      parties hereto acknowledge and agree that DBSI and each of its respective
      successors and assigns shall have all the rights of a third-party beneficiary
      in
      respect of Section 12 of this Agreement and shall be entitled to rely upon
      and
      directly enforce the provisions of Section 12 of this Agreement.

     

    
      
        
        

      

      
        -24-

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the Purchaser and the Seller have caused their names to be
      signed by their respective officers thereunto duly authorized as of the date
      first above written.

     

    DB
      STRUCTURED PRODUCTS, INC.

     

    By:/s/
      Ernest Calabrese

    Name:
      Ernest Calabrese

    Title:
      Director

     

    By:/s/
      Susan Valenti

    Name:
      Susan Valenti

    Title:
      Director

     

    ACE
      SECURITIES CORP.

     

    By:/s/
      Evelyn Echevarria

    Name:
      Evelyn Echevarria

    Title:
      Vice President

     

    By:
      /s/
      Doris J. Hearn

    Name:
      Doris J. Hearn

    Title:
      Vice President

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    EXHIBIT
      1

     

    Loan
      #:        

    Borrower:        

     

    LOST
      NOTE
      AFFIDAVIT

     

    I,
      as
      _____________________ of ____________________, a _______________ am authorized
      to make this Affidavit on behalf of __________________ (the “Seller”). In
      connection with the administration of the Mortgage Loans held by
      ______________________, a _______________ [corporation] as Seller on behalf
      of
      ____________________ (the “Purchaser”), _______________________ (the
“Deponent”), being duly sworn, deposes and says that:

     

    1. The
      Seller’s address is:

                    

                    

                    
 

    2. The
      Seller previously delivered to the Purchaser a signed Initial Certification
      with
      respect to such Mortgage and/or Assignment of Mortgage;

     

    3. Such
      Mortgage Note and/or Assignment of Mortgage was assigned or sold to the
      Purchaser by __________________, a pursuant to the terms and provisions of
      a
      Mortgage Loan Purchase Agreement dated as of _____________;

     

    4. Such
      Mortgage Note and/or Assignment of Mortgage is not outstanding pursuant to
      a
      request for release of Documents;

     

    5. Aforesaid
      Mortgage Note and/or Assignment of Mortgage (the “Original”) has been
      lost;

     

    6. Deponent
      has made or caused to be made a diligent search for the Original and has been
      unable to find or recover same;

     

    7. The
      Seller was the Seller of the Original at the time of the loss; and

     

    8. Deponent
      agrees that, if said Original should ever come into Seller’s possession, custody
      or power, Seller will immediately and without consideration surrender the
      Original to the Purchaser.

     

    9. Attached
      hereto is a true and correct copy of (i) the Note, endorsed in blank by the
      Mortgagee and (ii) the Mortgage or Deed of Trust (strike one) which secures
      the
      Note, which Mortgage or Deed of Trust is recorded in the county where the
      property is located.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    10. Deponent
      hereby agrees that the Seller (a) shall indemnify and hold harmless the
      Purchaser, its successors and assigns, against any loss, liability or damage,
      including reasonable attorney’s fees, resulting from the unavailability of any
      Notes, including but not limited to any loss, liability or damage arising from
      (i) any false statement contained in this Affidavit, (ii) any claim of any
      party
      that purchased a mortgage loan evidenced by the Lost Note or any interest in
      such mortgage loan, (iii) any claim of any borrower with respect to the
      existence of terms of a mortgage loan evidenced by the Lost Note on the related
      property to the fact that the mortgage loan is not evidenced by an original
      note
      and (iv) the issuance of a new instrument in lieu thereof (items (i) through
      (iv) above hereinafter referred to as the “Losses”) and (b) if required by any
      Rating Agency in connection with placing such Lost Note into a Pass-Through
      Transfer, shall obtain a surety from an insurer acceptable to the applicable
      Rating Agency to cover any Losses with respect to such Lost Note.

     

    11. This
      Affidavit is intended to be relied upon by the Purchaser, its successors and
      assigns. Seller represents and warrants that is has the authority to perform
      its
      obligations under this Affidavit of Lost Note.

     

    Executed
      this _ day of _______, 200_.

     

    

                        

     

    By:                     

    Name:

    Title:

     

    On
      this
      __ day of ______, 200_, before me appeared ______________________ to me
      personally known, who being duly sworn did say that he is the
      _______________________ of ____________________, a ______________________ and
      that said Affidavit of Lost Note was signed and sealed on behalf of such
      corporation and said acknowledged this instrument to be the free act and deed
      of
      said entity.

     

    Signature:

     

    [Seal]

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      2

    APPENDIX
      E — Standard & Poor’s Predatory Lending Categories

     

    Standard
      & Poor’s has categorized loans governed by anti-predatory lending laws in
      the Jurisdictions listed below into three categories based upon a combination
      of
      factors that include (a) the risk exposure associated with the assignee
      liability and (b) the tests and thresholds set forth in those laws. Note that
      certain loans classified by the relevant statute as Covered are included in
      Standard & Poor’s High Cost Loan Category because they included thresholds
      and tests that are typical of what is generally considered High Cost by the
      industry. 

     

    Standard
      & Poor’s High Cost Loan Categorization 

     

    
      	
              Standard
                & Poor’s High Cost Loan Categorization

            
	
              State/Jurisdiction

            	
              Name
                of Anti-Predatory Lending 

              Law/Effective
                Date

            	
              Category
                under 

              Applicable
                Anti-Predatory 

              Lending
                Law

            
	
              Arkansas
                

            	
              Arkansas
                Home Loan Protection Act, Ark; Code Ann. §§ 23-53-101
                et seq.

              Effective
                July 16, 2003 

            	
              High
                Cost Home Loan 

            
	
              Cleveland
                Heights, OH 

            	
              Ordinance
                No. 72-2003 (PSH), Mun. Code §§ 757.01
                et seq.

              Effective
                June 2, 2003 

            	
              Covered
                Loan 

            
	
              Colorado
                

            	
              Consumer
                Equity Protection, Colo. Stat. Ann. §§ 5-
                3.5-101 et seq.

              Effective
                for covered loans offered or entered into on or after January 1,
                2003.
                Other provisions of the Act took effect on June 7, 2002 

            	
              Covered
                Loan 

            
	
              Connecticut
                

            	
              Connecticut
                Abusive Home Loan Lending Practices Act, Conn. Gen. Stat. §§ 36a-746
                et seq.

              Effective
                October 1, 2001 

            	
              High
                Cost Home Loan

            
	
              District
                of Columbia 

            	
              Home
                Loan Protection Act, D.C. Code §§ 26-1151.01
                et seq.

              Effective
                for loans closed on or after January 28, 2003 

            	
              Covered
                Loan 

            
	
              Florida
                

            	
              Fair
                Lending Act, Fla. Stat. Ann. §§ 494.0078
                et seq.
                Effective October 2, 2002 

            	
              High
                Cost Home Loan 

            
	
              Georgia
                (Oct. 1, 2002 - Mar. 6, 2003) 

            	
              Georgia
                Fair Lending Act, Ga. Code Ann. §§ 7-6A-1 et seq.

              Effective
                October 1, 2002 - March 6, 2003 

            	
              High
                Cost Home Loan 

            
	
              Georgia
                as amended (Mar. 7, 2003 - current) 

            	
              Georgia
                Fair Lending Act, Ga. Code Ann. §§ 7-6A-1 et seq.
                

              Effective
                for loans closed on or after March 7, 2003 

            	
              High
                Cost Home Loan 

            
	
              HOEPA
                Section 32 

            	
              Home
                Ownership and Equity Protection Act of 1994, 

              15
                U.S.C. § 1639, 12 C.F.R. §§ 226.32 and 226.34 

              Effective
                October 1, 1995, amendments October 1, 

              2002
                

            	
              High
                Cost Loan 

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    
      	
              Standard
                & Poor’s High Cost Loan Categorization

            
	
              State/Jurisdiction

            	
              Name
                of Anti-Predatory Lending 

              Law/Effective
                Date

            	
              Category
                under 

              Applicable
                Anti-Predatory 

              Lending
                Law

            
	
              Illinois

            	
              High
                Risk Home Loan Act, Ill. Comp. Stat. tit. 815, 

              §§
                l37-5 et seq. 

              Effective
                January 1, 2004 (prior to this date, regulations under Residential
                Mortgage License Act effective from May 14, 2001) 

            	
              High
                Risk Home Loan 

            
	
              Indiana
                

            	
              Indiana
                Home Loan Practices Act, Ind. Code Ann. 

              §§
                24-9-1-1 et seq. 

              Effective
                January 1, 2005; amended by 2005 HB 

              1179,
                effective July 1, 2005. 

            	
              High
                Cost Home Loans 

            
	
              Kansas
                

            	
              Consumer
                Credit Code, Kan. Stat. Ann. §§ 16a-1-101 

              et seq.
                

              Sections
                16a-1-301 and 16a-3-207 became effective 

              April
                14, 1999; Section 16a-3-308à became effective 

              July
                l, 1999

            	
              High
                Loan to Value Consumer Loan (id.
§
                16a-3-207) and; 

            
	
              High
                APR Consumer Loan (id.
§
                16a-3-308a)

            
	
              Kentucky
                

            	
              2003
                KY H.B. 287 - High Cost Home Loan Act, Ky. 

              Rev.
                Stat. §§ 360.100 et seq.

              Effective
                June 24, 2003 

            	
              High
                Cost Home Loan

            
	
              Maine
                

            	
              Truth
                in Lending, Me. Rev. Stat. tit. 9-A, §§ 8-101 et seq.

              Effective
                September 29, 1995 and as amended from time to time 

            	
              High
                Rate High Fee Mortgage

            
	
              Massachusetts
                

            	
              Part
                40 and Part 32, 209 C.M.R. §§ 32.00 et seq.
                and 

              209
                C.M.R. §§ 40.01 et seq.
                

              Effective
                March 22, 2001 and amended from time to 

              time
                

            	
              High
                Cost Home Loan 

            
	
              Nevada
                

            	
              Assembly
                Bill No. 284, Nev. Rev. Stat. §§ 598D.010 

              et seq.

              Effective
                October 1, 2003 

            	
              Home
                Loan 

            
	
              New
                Jersey 

            	
              New
                Jersey Home Ownership Security Act of 2002, 

              N.J.
                Rev. Stat. §§ 46:10B-22 et seq.
                

              Effective
                for loans closed on or after November 27, 

              2003
                

            	
              High
                Cost Home Loan 

            
	
              New
                Mexico

            	
              Home
                Loan Protection Act, N.M. Rev. Stat. §§ 58- 

              21A-1
                et seq.
                

              Effective
                as of January 1, 2004; Revised as of 

              February
                26, 2004 

            	
              High
                Cost Home Loan

            
	
              New
                York 

            	
              N.Y.
                Banking Law Article 6-I

              Effective
                for applications made on or after April 1, 

              2003
                

            	
              High
                Cost Home Loan 

            
	
              North
                Carolina 

            	
              Restrictions
                and Limitations on High Cost Home 

              Loans,
                N.C. Gen. Stat. §§ 24-1.1E et seq.
                

              Effective
                July 1, 2000; amended October 1,
                2003
                

              (adding
                open-end lines of credit) 

            	
              High
                Cost Home Loan 

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    
      	
              Standard
                & Poor’s High Cost Loan Categorization

            
	
              State/Jurisdiction

            	
              Name
                of Anti-Predatory Lending 

              Law/Effective
                Date

            	
              Category
                under 

              Applicable
                Anti-Predatory 

              Lending
                Law

            
	
              Ohio

            	
              H.B.
                386 (codified in various sections of the Ohio 

              Code),
                Ohio Rev. Code Ann. §§ 1349.25 et seq.

              Effective
                May 24, 2002

            	
              Covered
                Loan

            
	
              Oklahoma

            	
              Consumer
                Credit Code (codified in various sections

              of
                Title 14A)

              Effective
                July 1, 2000; amended effective January 1,

              2004

            	
              Subsection
                10 Mortgage

            
	
              Rhode
                Island

            	
              Rhode
                Island Home Loan Protection Act, R.I. Gen.

              Laws
                §§ 34-25.2-1 et seq.
                Effective December 31,

              2006

            	
              High
                Cost Home Loan

            
	
              South
                Carolina

            	
              South
                Carolina High Cost and Consumer Home

              Loans
                Act, S.C. Code Ann. §§ 37-23-10 et seq.

              Effective
                for loans taken on or after January 1, 2004

            	
              High
                Cost Home Loan

            
	
              Tennessee

            	
              Tennessee
                Home Loan Protection Act, Tenn. Code

              Ann.
                §§ 45-20-101 et seq.
                Effective January 1, 2007.

            	
              High
                Cost Home Loan

            
	
              West
                Virginia

            	
              West
                Virginia Residential Mortgage Lender, Broker

              and
                Servicer Act, W. Va. Code Ann. §§ 31-17-1 et

              seq.

              Effective
                June 5, 2002

            	
              West
                Virginia Mortgage

              Loan
                Act Loan

            

    

    

    
      	
              Standard
                & Poor’s Covered Loan Categorization

            
	
              State/Jurisdiction

            	
              Name
                of Anti-Predatory Lending 

              Law/Effective
                Date

            	
              Category
                under 

              Applicable
                Anti-Predatory 

              Lending
                Law

            
	
              Georgia
                (Oct. 1, 2002 - Mar. 6, 2003)

            	
              Georgia
                Fair Lending Act, Ga. Code Ann.

              §§
                7-6A-1 et seq.

              Effective
                October 1, 2002 - March 6, 2003

            	
              Covered
                Loan

            
	
              New
                Jersey

            	
              New
                Jersey Home Ownership Security Act of

              2002,
                N.J. Rev. Stat. §§ 46:10B-22 et seq.

              Effective
                November 27, 2003 - July 5, 2004

            	
              Covered
                Home Loan

            

    

    

    
      	
              Standard
                & Poor’s Home Loan Categorization

            
	
              State/Jurisdiction

            	
              Name
                of Anti-Predatory Lending 

              Law/Effective
                Date

            	
              Category
                under 

              Applicable
                Anti-Predatory 

              Lending
                Law

            
	
              Georgia
                (Oct. 1, 2002 - 

              March
                6, 2003

            	
              Georgia
                Fair Lending Act, Ga. Code Ann. 

              §§
                7-6A-1 et seq.

              Effective
                October 1, 2002 - March 6, 2003

            	
              Home
                Loan

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    
      	
              Standard
                & Poor’s Home Loan Categorization

            
	
              State/Jurisdiction

            	
              Name
                of Anti-Predatory Lending 

              Law/Effective
                Date

            	
              Category
                under 

              Applicable
                Anti-Predatory 

              Lending
                Law

            
	
              New
                Jersey

            	
              New
                Jersey Home Ownership Security Act of 2002,

              N.J.
                Rev. Stat. §§ 46:10B-22 et seq.

              Effective
                for loans closed on or after November 27,

              2003

            	
              Home
                Loan

            
	
              New
                Mexico

            	
              Home
                Loan Protection Act, N.M. Rev. Stat. 

              §§
                58-21A-1 et seq.

              Effective
                as of January 1, 2004; Revised as of 

              February
                26, 2004

            	
              Home
                Loan

            
	
              North
                Carolina

            	
              Restrictions
                and Limitations on High Cost Home

              Loans,
                N.C. Gen. Stat. §§ 24-1.1E et seq.

              Effective
                July 1, 2000; amended October 1, 2003

              (adding
                open-end lines of credit)

            	
              Consumer
                Home Loan

            
	
              South
                Carolina

            	
              South
                Carolina High Cost and Consumer Home

              Loans
                Act, S.C. Code Ann. §§ 37-23-10 et seq.

              Effective
                for loans taken on or after January 1, 2004

            	
              Consumer
                Home Loan

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    EXHIBIT
      G

    FORM
      10-D, FORM 8-K AND FORM 10-K

    REPORTING
      RESPONSIBILITY

    

    As
      to
      each item described below, the entity indicated as the Responsible Party shall
      be primarily responsible for reporting the information to the party identified
      as responsible for preparing the Securities Exchange Act Reports pursuant to
      Section 5.06(a)(ii). 

    

    Under
      Item 1 of Form 10-D: a) items marked “monthly statement” are required to be
      included in the periodic Distribution Date statement under Section 5.02,
      provided by the Securities Administrator based on information received from
      the
      Master Servicer; and b) items marked “Form 10-D report” are required to be in
      the Form 10-D report but not the monthly statement, provided by the party
      indicated. Information under all other Items of Form 10-D is to be included
      in
      the Form 10-D report. 

    
       

      
        	 	 	 	 	 	 	 	 	
                 Master
                  

              	 	
                Securities
                  

              	 	 	 	 	 	 	 	 	 
	
                Form

              	 	
                Item

              	 	
                Description

              	 	
                
                  Servicers

                

              	 	
                 Servicer

              	 	
                Administrator

              	 	
                Custodian

              	 	
                Trustee

              	 	
                Depositor

              	 	
                 Sponsor

              	 
	
                10-D

              	 	
                Must
                  be filed within 15 days of the distribution date for the asset-backed
                  securities.

              	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              	 	 	
                1

              	 	 	
                Distribution
                  and Pool Performance Information

              	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              	 	 	
              	 	 	
                Item
                  1121(a) - Distribution and Pool Performance
                  Information

              	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              	 	 	 	 	 	
                (1)
                  Any applicable record dates, accrual dates, determination dates
                  for
                  calculating distributions and actual distribution dates for the
                  distribution period.

              	 	 	 	 	 	 	 	 	
                X

                 

                
                

                (monthly
                  statement)

              	
                
                

                 

              	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              	 	 	
              	 	 	
                (2)
                  Cash flows received and the sources thereof for distributions,
                  fees and
                  expenses.

              	 	 	 	 	 	 	 	 	
                X

                
                

                (monthly
                  statement)

              	
                
                

                 

              	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              	 	 	
              	 	 	
                (3)
                  Calculated amounts and distribution of the flow of funds for the
                  period
                  itemized by type and priority of payment, including:

              	 	 	 	 	 	 	 	 	
                X

                 

                
                

                (monthly
                  statement)

              	
                
                

                 

              	 	 	 	 	 	 	 	 	 	 	 	 

      

       

      
        
          
          

        

        
          G-1

          
            

          

        

        
          
          

        

      

       

      
        	 	 	 	 	 	 	 	 	
                 Master
                  

              	 	
                Securities
                  

              	 	 	 	 	 	 	 	 	 
	
                Form

              	 	
                Item

              	 	
                Description

              	 	
                Servicers

              	 	
                 Servicer

              	 	
                Administrator

              	 	
                Custodian

              	 	
                Trustee

              	 	
                Depositor

              	 	
                 Sponsor

              	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              	 	 	 	 	 	
                (i)
                  Fees or expenses accrued and paid, with an identification of the
                  general
                  purpose of such fees and the party receiving such fees or
                  expenses.

              	 	 	 	 	 	 	 	 	
                X

                 

                
                

                (monthly
                  statement)

              	
                
                

                 

              	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              	 	 	 	 	 	
                (ii)
                  Payments accrued or paid with respect to enhancement or other support
                  identified in Item 1114 of Regulation AB (such as insurance premiums
                  or
                  other enhancement maintenance fees), with an identification of
                  the general
                  purpose of such payments and the party receiving such
                  payments.

              	 	 	 	 	 	 	 	 	
                X

                 

                
                

                (monthly
                  statement)

              	
                
                

                 

              	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              	 	 	 	 	 	
                (iii)
                  Principal, interest and other distributions accrued and paid on
                  the
                  asset-backed securities by type and by class or series and any
                  principal
                  or interest shortfalls or carryovers.

              	 	 	 	 	 	 	 	 	
                X

                 

                
                

                (monthly
                  statement)

              	
                
                

                 

              	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              	 	 	 	 	 	
                (iv)
                  The amount of excess cash flow or excess spread and the disposition
                  of
                  excess cash flow.

              	 	 	 	 	 	 	 	 	
                X

                
                

                (monthly
                  statement)

              	
                
                

                 

              	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              	 	 	 	 	 	
                (4)
                  Beginning and ending principal balances of the asset-backed
                  securities.

              	 	 	 	 	 	 	 	 	
                X

                
                

                (monthly
                  statement)

              	
                
                

                 

              	 	 	 	 	 	 	 	 	 	 	 	 

      

       

      
        
          
          

        

        
          G-2

          
            

          

        

        
          
          

        

      

       

      
        	 	 	 	 	 	 	 	 	
                Master
                  

              	 	
                Securities
                  

              	 	 	 	 	 	 	 	 	 
	
                Form

              	 	
                Item

              	 	
                Description

              	 	
                Servicers

              	 	
                Servicer

              	 	
                Administrator

              	 	
                Custodian

              	 	
                Trustee

              	 	
                Depositor

              	 	
                 Sponsor

              	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              	 	 	 	 	 	
                (5)
                  Interest rates applicable to the pool assets and the asset-backed
                  securities, as applicable. Consider providing interest rate information
                  for pool assets in appropriate distributional groups or incremental
                  ranges.

              	 	 	 	 	 	 	 	 	
                X

                 

                
                

                (monthly
                  statement)

              	
                
                

                 

              	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              	 	 	 	 	 	
                (6)
                  Beginning and ending balances of transaction accounts, such as
                  reserve
                  accounts, and material account activity during the period.

              	 	 	 	 	 	 	 	 	
                X

                 

                
                

                (monthly
                  statement)

              	
                
                

                 

              	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              	 	 	 	 	 	
                (7)
                  Any amounts drawn on any credit enhancement or other support identified
                  in
                  Item 1114 of Regulation AB, as applicable, and the amount of coverage
                  remaining under any such enhancement, if known and
                  applicable.

              	 	 	 	 	 	 	 	 	
                X

                 

                
                

                (monthly
                  statement)

              	
                
                

                 

              	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              	 	 	 	 	 	
                (8)
                  Number and amount of pool assets at the beginning and ending of
                  each
                  period, and updated pool composition information, such as weighted
                  average
                  coupon, weighted average remaining term, pool factors and prepayment
                  amounts.

              	 	 	 	 	 	 	 	 	
                X

                 

                (monthly
                  statement)

                 

              	
                
                

                 

              	 	 	 	 	 	 	 	
                Updated
                  pool composition information fields to be as specified by Depositor
                  from
                  time to time

              	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              	 	 	 	 	 	
                (9)
                  Delinquency and loss information for the period.

              	 	 	
                X

              	 	 	
                X

              	 	 	
                X

                
                

                (monthly
                  statement)

              	
                
                

                 

              	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              	 	 	 	 	 	
                In
                  addition, describe any material changes to the information specified
                  in
                  Item 1100(b)(5) of Regulation AB regarding the pool assets.
                  (methodology)

              	
                 

              	 	
                X

              	 	 	
                X

              	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

      

       

      
        
          
          

        

        
          G-3

          
            

          

        

        
          
          

        

      

       

      
        	 	 	 	 	 	 	 	 	
                Master
                  

              	 	
                Securities
                  

              	 	 	 	 	 	 	 	 	 
	
                Form

              	 	
                Item

              	 	
                Description

              	 	
                Servicers

              	 	
                 Servicer

              	 	
                 Administrator

              	 	
                 Custodian

              	 	
                Trustee

              	 	
                Depositor

              	 	
                  Sponsor

              	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              	 	 	 	 	 	
                (10)
                  Information on the amount, terms and general purpose of any advances
                  made
                  or reimbursed during the period, including the general use of funds
                  advanced and the general source of funds for
                  reimbursements.

              	 	 	
                X

              	 	 	
                X

              	 	 	
                X

                 

                
                

                (monthly
                  statement)

              	
                
                

                 

              	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              	 	 	 	 	 	
                (11)
                  Any material modifications, extensions or waivers to pool asset
                  terms,
                  fees, penalties or payments during the distribution period or that
                  have
                  cumulatively become material over time.

              	 	 	
                X

              	 	 	
                X

              	 	 	
                X

                 

                
                

                (monthly
                  statement)

              	
                
                

                 

              	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              	 	 	 	 	 	
                (12)
                  Material breaches of pool asset representations or warranties or
                  transaction covenants.

              	 	 	
                X

              	 	 	
                X

              	 	 	 	 	 	 	 	 	 	 	 	
                X

              	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              	 	 	 	 	 	
                (13)
                  Information on ratio, coverage or other tests used for determining
                  any
                  early amortization, liquidation or other performance trigger and
                  whether
                  the trigger was met.

              	 	 	 	 	 	 	 	 	
                X

                 

                
                

                (monthly
                  statement)

              	
                
                

                 

              	 	 	 	 	 	 	 	 	 	 	 	 

      

       

      
        
          
          

        

        
          G-4

          
            

          

        

        
          
          

        

      

       

      
        	 	 	 	 	 	 	 	 	
                Master
                  

              	 	
                Securities
                  

              	 	 	 	 	 	 	 	 	 
	
                Form

              	 	
                Item

              	 	
                Description

              	 	
                Servicers

              	 	
                 Servicer

              	 	
                 Administrator

              	 	
                 Custodian

              	 	
                Trustee

              	 	
                Depositor

              	 	
                  Sponsor

              	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              	 	 	 	 	 	
                (14)
                  Information regarding any new issuance of asset-backed securities
                  backed
                  by the same asset pool, any pool asset changes (other than in connection
                  with a pool asset converting into cash in accordance with its terms),
                  such
                  as additions or removals in connection with a prefunding or revolving
                  period and pool asset substitutions and repurchases (and purchase
                  rates,
                  if applicable), and cash flows available for future purchases,
                  such as the
                  balances of any prefunding or revolving accounts, if
                  applicable.

              	 	 	
                X

              	 	 	
                X

              	 	 	
                X

              	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              	 	 	 	 	 	
                Disclose
                  any material changes in the solicitation, credit-granting, underwriting,
                  origination, acquisition or pool selection criteria or procedures,
                  as
                  applicable, used to originate, acquire or select the new pool
                  assets.

              	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
                X

              	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              	 	 	 	 	 	
                Item
                  1121(b) - Pre-Funding or Revolving Period Information

                
                

                Updated
                  pool information as required under Item 1121(b).

              	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
                X

              	 

      

       

      
        
          
          

        

        
          G-5

          
            

          

        

        
          
          

        

      

    

    
       

      
        	
                Form

              	 	
                 Item

              	 	 

                Description

              	 	 

                Servicers

              	 	
                Master 

                 Servicer

              	 	
                
                   Securities
                    
 Administrator

              	 	
                 Custodian

              	 	 

                Trustee

              	 	 

                Depositor

              	 	
                 Sponsor

              	 
	 	 	
                 2

              	 	
                 Legal
                  Proceedings

              	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              	 	 	
              	 	 	
                Item
                  1117 - Legal proceedings pending against the following entities,
                  or their
                  respective property, that is material to Certificateholders, including
                  proceedings known to be contemplated by governmental
                  authorities:

              	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              	 	 	 	 	 	
                Sponsor
                  (Seller)

              	
                 

              	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
                X

              	 
	
              	 	 	 	 	 	
                Depositor

              	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
                X

              	 	 	 	 
	
              	 	 	 	 	 	
                
                  Trustee 

                

              	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
                X

              	 	 	 	 	 	 	 
	
              	 	 	 	 	 	
                Issuing
                  entity 

              	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
                X

              	 	 	 	 
	
              	 	 	 	 	 	
                Master
                  Servicer, affiliated Servicer, other Servicer servicing 20% or
                  more of
                  pool assets at time of report, other material
                  servicers 

              	 	 	
                X

              	 	 	
                X

              	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                 

              	 	 	 	 	 	
                Securities
                  Administrator 

              	 	 	 	 	 	 	 	 	
                X

              	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              	 	 	 	 	 	
                Originator
                  of 20% or more of pool assets as of the Cut-off Date 

              	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
                X

              	 	 	 	 
	
              	 	 	 	 	 	
                Custodian 

              	 	 	 	 	 	 	 	 	 	 	 	
                X

              	 	 	 	 	 	 	 	 	 	 

      

       

      
        
          
          

        

        
          G-6

          
            

          

        

        
          
          

        

      

       

      
        	 

                Form

              	 	
                 Item

              	 	 

                Description

              	
                 

              	 

                Servicers

              	
                 

              	
                Master

                Servicer

              	
                 

              	
                Securities
 

                Administrator

              	
                 

              	
                Custodian

              	
                 

              	 

                Trustee

              	
                 

              	 

                Depositor

              	
                 

              	 

                 Sponsor

              	
                 

              
	
              	
                 

              	
                 

              	
                3

              	
                 

              	
                 

              	
                Sales
                  of Securities and Use of Proceeds

              	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	
                Information
                  from Item 2(a) of Part II of Form 10-Q:

                 

                
                

                With
                  respect to any sale of securities by the sponsor, depositor or
                  issuing
                  entity, that are backed by the same asset pool or are otherwise
                  issued by
                  the issuing entity, whether or not registered, provide the sales
                  and use
                  of proceeds information in Item 701 of Regulation S-K. Pricing
                  information
                  can be omitted if securities were not registered.

              	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
                X

              	 	 	 	 
	 	 	 	
                4

              	 	 	
                Defaults
                  Upon Senior Securities

              	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	
                Information
                  from Item 3 of Part II of Form 10-Q:

                 

                
                

                Report
                  the occurrence of any Event of Default (after expiration of any
                  grace
                  period and provision of any required notice)

              	
                
                

                 

              	 	 	 	 	 	 	 	
                X

              	 	 	 	 	 	
                X

              	 	 	 	 	 	 	 
	 	 	 	
                5

              	 	 	
                Submission
                  of Matters to a Vote of Security Holders

              	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                 

              	 	 	 	 	 	
                Information
                  from Item 4 of Part II of Form 10-Q 

              	 	 	 	 	 	 	 	 	
                X

              	 	 	 	 	 	
                X

              	 	 	 	 	 	 	 
	
              	 	 	
                6

              	 	 	
                Significant
                  Obligors of Pool Assets

              	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                 

              	 	 	 	 	 	
                Item
                  1112(b) - Significant
                  Obligor Financial Information* 

              	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
                X

              	 	 	
                X

              	 
	 	 	 	 	 	 	
                *This
                  information need only be reported on the Form 10-D for the distribution
                  period in which updated information is required pursuant to the
                  Item.

              	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

      

       

      
        
          
          

        

        
          G-7

          
            

          

        

        
          
          

        

      

       

      
        	
                 Form

              	 	
                Item

              	 	 

                Description

              	 	 

                Servicers

              	 	
                 Master

                Servicer

              	 	
                 Securities

                Administrator

              	 	 

                Custodian

              	 	
                Trustee

              	 	 

                Depositor

              	 	
                 Sponsor

              	 
	
              	 	
                7

              	 	
                Significant
                  Enhancement Provider Information

              	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              	 	 	 	 	 	
                Item
                  1114(b)(2) - Credit Enhancement Provider Financial
                  Information*

              	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                 

              	 	 	 	 	 	
                Determining
                  applicable disclosure threshold

              	 	 	 	 	 	 	 	 	
                X

              	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                 

              	 	 	 	 	 	
                Requesting
                  required financial information or effecting incorporation by
                  reference 

              	 	 	 	 	 	 	 	 	
                X

              	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                 

              	 	 	 	 	 	
                 

                Item
                  1115(b) - Derivative Counterparty Financial
                  Information* 

              	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                 

              	 	 	 	 	 	
                Determining
                  current maximum probable exposure

              	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
                X

              	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              	 	 	 	 	 	
                Determining
                  current significance percentage

              	 	 	 	 	 	 	 	 	
                X

              	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                 

              	 	 	 	 	 	
                Requesting
                  required financial information or effecting incorporation by
                  reference

              	 	 	 	 	 	 	 	 	
                X

              	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              	 	 	 	 	 	
                 

                *This
                  information need only be reported on the Form 10-D for the distribution
                  period in which updated information is required pursuant to the
                  Items. 

              	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	
                8

              	 	 	
                Other
                  Information

              	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              	Disclose
                any information required to be
                reported on Form 8-K during the period covered by the Form 10-D but
                not reported
                	 	
                The
                  Responsible Party for the applicable Form 8-K item as indicated
                  below.

              
	 	 	 	
                9

              	 	 	
                Exhibits

              	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                 

              	 	 	 	 	 	
                Distribution
                  report 

              	 	 	 	 	 	 	 	 	
                X

              	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                 

              	 	 	 	 	 	
                Exhibits
                  required by Item 601 of Regulation S-K, such as material
                  agreements 

              	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
                X

              	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

      

      
         

        
          
          

        

        
          G-8

          
            

          

        

        
          
          

        

      

       

    

    
      
        	
                 Form

              	
                 

              	
                 

              	
                Item

              	 	 	
                Description

              	 	 	
                Servicers

              	 	 	
                Master

                Servicer

              	 	 	
                Securities

                Administrator

              	 	 	
                Custodian

              	 	 	
                Trustee

              	 	 	
                Depositor

              	 	 	Sponsor	 
	  8-K	 	
                 Must
                  be filed within four business days of an event reportable on Form
                  8-K.

              	 	 	 	 	 	 	 
	 	 	 	
                1.01

              	 	 	
                Entry
                  into a Material Definitive Agreement

              	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
                 

              	 	 	 	 
	
              	 	 	 	 	 	
                Disclosure
                  is required regarding entry into or amendment of any definitive
                  agreement
                  that is material to the securitization, even if depositor is not
                  a party.
                  

                 

                
                

                Examples:
                  servicing agreement, custodial agreement.

                 

                
                

                Note:
                  disclosure not required as to definitive agreements that are fully
                  disclosed in the prospectus

              	 	 	
                X

              	 	 	
                X

              	 	 	
                X(if
                  Master Servicer is not a party)

              	
              	 	 	 	 	
                X(if
                  Master Servicer is not a party)

              	
                 

              	 	
                X(if
                  Master Servicer is not a party)

              	
                 

              	 	
                X(if
                  Master Servicer is not a party)

              	
                 

              
	 	 	 	
                1.02

              	 	 	
                Termination
                  of a Material Definitive Agreement

              	 	 	
                X

              	 	 	
                X

              	 	 	
                X(if
                  Master Servicer is not a party)

              	
                 

              	 	 	 	 	
                X(if
                  Master Servicer is not a party)

              	
                 

              	 	
                X(if
                  Master Servicer is not a party)

              	
                    

              	 	
                X(if
                  Master Servicer is not a party)

              	
                 

              
	
                 

                 

                 

                 

              	 	 	 	 	 	
                Disclosure
                  is required regarding termination of
                  any definitive agreement that is material to the securitization
                  (other
                  than expiration in accordance with its terms), even if depositor
                  is not a
                  party.  

                 

                Examples:
                  servicing agreement, custodial agreement.

              	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

      

       

      
        
          
          

        

        
          G-9

          
            

          

        

        
          
          

        

      

       

      
        	
                 Form

              	 	
                 Item

              	 	
                 Description

              	 	 

                Servicers

              	 	
                 Master

                Servicer

              	 	
                 Securities

                Administrator

              	 	 

                Custodian

              	 	 

                Trustee

              	 	 

                Depositor

              	 	 Sponsor	 
	 	 	
                1.03

              	 	
                Bankruptcy
                  or Receivership

              	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              	 	 	 	 	 	
                Disclosure
                  is required regarding the bankruptcy or receivership, if known
                  to the
                  Master Servicer, with respect to any of the following: 

                 

                
                

                Sponsor
                  (Seller), Depositor, Master Servicer, affiliated Servicer, other
                  Servicer
                  servicing 20% or more of pool assets at time of report, other material
                  servicers, Certificate Administrator, Trustee, significant obligor,
                  credit
                  enhancer (10% or more), derivatives counterparty,
                  Custodian

              	 	 	
                X

              	 	 	
                X

              	 	 	
                X

              	 	 	
                X

              	 	 	
                X

              	 	 	
                X

              	 	 	
                X

              	 
	 	 	 	
                2.04

              	 	 	
                Triggering
                  Events that Accelerate or Increase a Direct Financial Obligation
                  or an
                  Obligation under an Off-Balance Sheet Arrangement

              	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                 

                 

                 

              	 	 	 	 	 	
                Includes
                  an early amortization, performance
                  trigger or other event, including event of default, that would
                  materially
                  alter the payment priority/distribution of cash flows/amortization
                  schedule. 

                 

                Disclosure
                  will be made of events other than waterfall triggers which are
                  disclosed
                  in the monthly statement

              	 	 	 	 	 	
                X

              	 	 	
                X

              	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	
                3.03

              	 	 	
                Material
                  Modification to Rights of Security Holders

              	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                 

              	 	 	 	 	 	
                Disclosure
                  is required of any material modification to documents defining
                  the rights
                  of Certificateholders, including the Pooling and Servicing
                  Agreement
 	 	 	 	 	 	
                X

              	 	 	
                X

              	 	 	 	 	 	
                X

              	 	 	
                X

              	 	 	 	 

      

    

     

    
      
        
        

      

      
        G-10

        
          

        

      

      
        
        

      

    

     

    
      	
              Form

            	 	
              Item

            	 	
              Description

            	 	
              Servicers

            	 	
              Master
                Servicer

            	 	
              Securities
                Administrator

            	 	
              Custodian

            	 	
              Trustee

            	 	
              Depositor

            	 	
              Sponsor

            
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	
              5.03

            	 	
              Amendments
                to Articles of Incorporation or Bylaws; Change in Fiscal
                Year

            	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	
              Disclosure
                is required of any amendment “to the governing documents of the issuing
                entity”

            	 	 	 	 	 	 	 	 	 	
              X

            	 	
              X

            	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	
              5.06

            	 	
              Change
                in Shell Company Status

            	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	
              [Not
                applicable to ABS issuers]

            	 	 	 	 	 	 	 	 	 	 	 	
              X

            	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	
              6.01

            	 	
              ABS
                Informational and Computational Material

            	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	
              [Not
                included in reports to be filed under Section 3.18]

            	 	 	 	 	 	 	 	 	 	 	 	
              X

            	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	
              6.02

            	 	
              Change
                of Servicer or Trustee

            	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	
              Requires
                disclosure of any removal, replacement, substitution or addition
                of any
                master servicer, affiliated servicer, other servicer servicing 10%
                or more
                of pool assets at time of report, other material servicers, certificate
                administrator or trustee. 

            	 	
              X

            	 	
              X

            	 	
              X

            	 	 	 	
              X

            	 	
              X

            	 	 
	 	 	 	 	
              Reg
                AB disclosure about any new servicer (from entity appointing new
                servicer)
                or trustee (from Depositor) is also required.

            	 	
              X

            	 	 	 	 	 	 	 	
              X

            	 	
              X

            	 	 

    

     

    
      
        
        

      

      
        G-11

        
          

        

      

      
        
        

      

    

      

    
      	
              Form

            	 	
              Item

            	 	
              Description

            	 	
              Servicers

            	 	
              Master
                Servicer

            	 	
              Securities
                Administrator

            	 	
              Custodian

            	 	
              Trustee

            	 	
              Depositor

            	 	
              Sponsor

            
	 	 	
              6.03

            	 	
              Change
                in Credit Enhancement or Other External Support

            	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	
              Covers
                termination of any enhancement in manner other than by its terms,
                the
                addition of an enhancement, or a material change in the enhancement
                provided. Applies to external credit enhancements as well as derivatives.
                

            	 	 	 	 	 	
              X

            	 	 	 	
              X

            	 	
              X

            	 	 
	 	 	 	 	
              Reg
                AB disclosure about any new enhancement provider is also
                required.

            	 	 	 	 	 	 	 	 	 	 	 	
              X

            	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	
              6.04

            	 	
              Failure
                to Make a Required Distribution

            	 	 	 	 	 	
              X

            	 	 	 	
              X

            	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	
              6.05

            	 	
              Securities
                Act Updating Disclosure

            	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	
              If
                any material pool characteristic differs by 5% or more at the time
                of
                issuance of the securities from the description in the final prospectus,
                provide updated Reg AB disclosure about the actual asset
                pool.

            	 	 	 	 	 	 	 	 	 	 	 	
              X

            	 	
               

            
	 	 	 	 	
              If
                there are any new servicers or originators required to be disclosed
                under
                Regulation AB as a result of the foregoing, provide the information
                called
                for in Items 1108 and 1110 respectively.

            	 	 	 	 	 	 	 	 	 	 	 	
              X

            	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	
              7.01

            	 	
              Regulation
                FD Disclosure

            	 	
              X

            	 	
              X

            	 	
              X

            	 	 	 	
              X

            	 	
              X

            	 	
              X

            
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	
              8.01

            	 	
              Other
                Events

            	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	
              Any
                event, with respect to which information is not otherwise called
                for in
                Form 8-K, that the registrant deems of importance to security
                holders.

            	 	 	 	 	 	 	 	 	 	 	 	
              X

            	 	 

    

     

    
      
        
        

      

      
        G-12

        
          

        

      

      
        
        

      

    

     

    
      	
              Form

            	 	
              Item

            	 	
              Description

            	 	Servicers	 	
              Master
                Servicer

            	 	
              Securities
                Administrator

            	 	
              Custodian

            	 	
              Trustee

            	 	
              Depositor

            	 	
              Sponsor

            
	 	 	
              9.01

            	 	
              Financial
                Statements and Exhibits

            	 	
              The
                Responsible Party applicable to reportable event.

            	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              10-K

            	 	
              Must
                be filed within 90 days of the fiscal year end for the
                registrant.

            	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	
              9B

            	 	
              Other
                Information

            	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	
              Disclose
                any information required to be reported on Form 8-K during the fourth
                quarter covered by the Form 10-K but not reported

            	 	
              The
                Responsible Party for the applicable Form 8-K as indicated
                above.

            	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
            	 	
              15

            	 	
              Exhibits
                and Financial Statement Schedules

            	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	
              Item
                1112(b) - Significant
                Obligor Financial Information

            	 	 	 	 	 	 	 	 	 	 	 	
              X

            	 	
              X

            
	 	 	 	 	
              Item
                1114(b)(2) - Credit Enhancement Provider Financial
                Information

            	 	 	 	 	 	 	 	 	 	 	 	
            	 	
            
	 	 	 	 	
              Determining
                applicable disclosure threshold

            	 	 	 	 	 	
              X

            	 	 	 	 	 	 	 	 
	 	 	 	 	
              Requesting
                required financial information or effecting incorporation by
                reference

            	 	 	 	 	 	
              X

            	 	 	 	 	 	 	 	 
	 	 	 	 	
              Item
                1115(b) - Derivative Counterparty Financial
                Information

            	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	
              Determining
                current maximum probable exposure

            	 	 	 	 	 	 	 	 	 	 	 	
              X

            	 	 
	 	 	 	 	
              Determining
                current significance percentage

            	 	 	 	 	 	
              X

            	 	 	 	 	 	 	 	 
	 	 	 	 	
              Requesting
                required financial information or effecting incorporation by
                reference

            	 	 	 	 	 	
              X

            	 	 	 	 	 	 	 	 

    

     

    
      
        
        

      

      
        G-13

        
          

        

      

      
        
        

      

    

     

    
      	
              Form

            	 	
              Item

            	 	
              Description

            	 	
              Servicers

            	 	
              Master
                Servicer

            	 	
              Securities
                Administrator

            	 	
              Custodian

            	 	
              Trustee

            	 	
              Depositor

            	
            	
              Sponsor

            
	 	 	 	 	
              Item
                1117 - Legal proceedings pending against the following entities,
                or their
                respective property, that is material to Certificateholders, including
                proceedings known to be contemplated by governmental
                authorities:

            	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	
              Sponsor
                (Seller)

            	 	 	 	 	 	 	 	 	 	 	 	 	 	
              X

            
	 	 	 	 	
              Depositor

            	 	 	 	 	 	 	 	 	 	 	 	
              X

            	 	 
	 	 	 	 	
              Trustee

            	 	 	 	 	 	 	 	 	 	
              X

            	 	 	 	 
	 	 	 	 	
              Issuing
                entity

            	 	 	 	 	 	 	 	 	 	 	 	
              X

            	 	 
	 	 	 	 	
              Master
                Servicer, affiliated Servicer, other Servicer servicing 20% or more
                of
                pool assets at time of report, other material servicers

            	 	
              X

            	 	
              X

            	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	
              Securities
                Administrator

            	 	 	 	 	 	
              X

            	 	 	 	 	 	 	 	 
	 	 	 	 	
              Originator
                of 20% or more of pool assets as of the Cut-off Date

            	 	 	 	 	 	 	 	 	 	 	 	
              X

            	 	
              X

            
	 	 	 	 	
              Custodian

            	 	 	 	 	 	 	 	
              X

            	 	 	 	 	 	 
	 	 	 	 	
              Item
                1119 - Affiliations and relationships between the following entities,
                or
                their respective affiliates, that are material to
                Certificateholders:

            	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	
              Sponsor
                (Seller)

            	 	 	 	 	 	 	 	 	 	 	 	 	 	
              X

            
	 	 	 	 	
              Depositor

            	 	 	 	 	 	 	 	 	 	 	 	
              X

            	 	 
	 	 	 	 	
              Trustee

            	 	 	 	 	 	 	 	 	 	
              X
                (with respect to 1119(a) affiliations only)

            	 	 	 	 

    

     

    
      
        
        

      

      
        G-14

        
          

        

      

      
        
        

      

    

     

    
      	
              Form

            	 	
              Item

            	 	
              Description

            	 	
              Servicers

            	 	
              Master
                Servicer

            	 	
              Securities
                Administrator

            	 	
              Custodian

            	 	
              Trustee

            	 	
              Depositor

            	 	
              Sponsor

            
	 	 	 	 	
              Master
                Servicer, affiliated Servicer, other Servicer servicing 20% or more
                of
                pool assets at time of report, other material servicers

            	 	
              X

            	 	
              X

            	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	
              Securities
                Administrator

            	 	 	 	 	 	
              X

            	 	 	 	 	 	 	 	 
	 	 	 	 	
              Originator

            	 	 	 	 	 	 	 	 	 	 	 	
              X

            	 	
              X

            
	 	 	 	 	
              Custodian

            	 	 	 	 	 	 	 	
              X
                (with respect to affiliations only)

            	 	 	 	 	 	 
	 	 	 	 	
              Credit
                Enhancer/Support Provider

            	 	 	 	 	 	 	 	 	 	 	 	
              X

            	 	
              X

            
	 	 	 	 	
              Significant
                Obligor

            	 	 	 	 	 	 	 	 	 	 	 	
              X

            	 	
              X

            
	 	 	 	 	
              Item
                1122 - Assessment of Compliance with Servicing
                Criteria

            	 	
              X

            	 	
              X

            	 	
              X

            	 	
              X

            	 	 	 	 	 	 
	 	 	 	 	
              Item
                1123 - Servicer Compliance Statement

            	 	
              X

            	 	
              X

            	 	 	 	 	 	 	 	 	 	 

    

    

    
      
        
        

      

      
        G-15

        
          

        

      

      
        
        

      

    

    EXHIBIT
      H

     

    ADDITIONAL
      DISCLOSURE NOTIFICATION

     

    **SENT
      VIA FAX TO [_XXX)XXX-XXXX] AND VIA EMAIL TO [_________________] AND VIA
      OVERNIGHT MAIL TO THE ADDRESS IMMEDIATELY BELOW:

     

    Wells
      Fargo Bank, N.A. as Securities Administrator

    9062
      Old
      Annapolis Road

    Columbia,
      Maryland 21045

    Fax:
      (410) 715-2380

    E-mail:
      cts.sec.notifications@wellsfargo.com

    Attn:
      Corporate Trust Services - ACE 2007-HE4 - SEC REPORT PROCESSING

     

    ACE
      Securities Corp.

    6525
      Morrison Boulevard, Suite 318

    Charlotte,
      North Carolina 28211

    Fax:
      (704) 365-1362)

    Attn:
      Juliana Johnson

     

    RE:
      **
      Additional Form [10-D][10-K][8-K] Disclosure** Required

     

    Ladies
      and Gentlemen:

     

    In
      accordance with Section [__] of the Pooling and Servicing Agreement, dated
      as of [________] [__], 2007 among [_____________], as [______], [_____________],
      as [______], [_____________], as [______] and [_____________], as [______],
      the
      undersigned, as [______], hereby notifies you that certain events have come
      to
      our attention that [will] [may] need to be disclosed on Form
      [10-D][10-K][8-K].

     

    Description
      of Additional Form [10-D][10-K][8-K] Disclosure:

     

    List
      of any Attachments hereto to be included in the Additional Form
      [10-D][10-K][8-K] Disclosure: 

     

    Any
      inquiries related to this notification should be directed to [_____________],
      phone number: [______]; email address: [_________________].

     

    
      	 	 	 	
              [NAME
                OF PARTY],

            
	
            	 	 	
              as
                [role]

            
	 	 	 	 
	 	 	 	By:
	
            	 	 	
              
                

              

              Name:

            
	
            	 	 	
              Title:

            

    

     

    
      
        
        

      

      
        H-1

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      I

     

    SWAP
      AGREEMENT

     

    
      
        
        

      

      
        I-1

        
          

        

      

      
        
        

      

       

    

     

      

     

    
      
        	
                DATE:

              	
                April
                  30, 2007

              
	 	 
	
                TO:

                 

              	
                HSBC
                  Bank USA, National Association, not in its individual capacity,
                  but solely
                  as Supplemental Interest Trust Trustee for the Supplemental Interest
                  Trust
                  with respect to ACE Securities Corp. Home Equity Loan Trust, Series
                  2007-HE4 Asset Backed Pass-Through Certificates (“Party
                  B”)

              
	 	 
	
                ATTENTION:

              	
                HSBC
                  BANK USA, National Association

              
	 	
                CTLA
                  - Structured Finance 

              
	 	
                452
                  Fifth Avenue

              
	 	
                Attn:
                  Susie Moy

              
	 	
                New
                  York, NY 10018

              
	 	 
	
                FROM:

              	
                Deutsche
                  Bank AG,
                  New York Branch 

              
	 	 
	
                ATTENTION:

              	
                New
                  York Derivatives Documentation 

              
	
                TELEPHONE:

              	
                1
                  212 250 9425 

              
	
                FACSIMILE:

              	
                1
                  212 797 0779 

              
	
                EMAIL:

              	
                NYderivative.documentation@db.com

              
	 	 
	
                OUR
                  REFERENCE:

              	
                Global
                  No. N606256N

              
	 	 
	
                RE:

              	
                Interest
                  Rate Swap Transaction

              

      

      

      The
        purpose of this long-form confirmation (“Confirmation”)
        is to
        confirm the terms and conditions of the current Transaction entered into
        on the
        Trade Date specified below (the “Transaction”)
        between
        Deutsche Bank AG,
        New
        York Branch
        (“Party
        A”) and
        HSBC
        Bank USA, National Association, not individually, but solely as trustee (the
        “Supplemental Interest Trust Trustee”) on behalf of the supplemental interest
        trust with respect to the ACE Securities Corp. Home Equity Loan Trust, Series
        2007-HE4 Asset Backed Pass-Through Certificates (the “Supplemental
        Interest Trust”)
        created under Pooling and Servicing Agreement, dated as of April 1, 2007,
        among
        Ace Securities Corp. (the “Depositor”),
        Ocwen
        Loan Servicing, LLC (a “Servicer”),
        GMAC
        Mortgage, LLC (a “Servicer”),
        Wells
        Fargo Bank, National Association (the “Master
        Servicer”
        and the
“Securities
        Administrator”)
        and
        HSBC Bank USA, National Association (the
        “Trustee”).
        This
        Confirmation evidences a complete and binding agreement between you and us
        to
        enter into the Transaction on the terms set forth below and replaces any
        previous agreement between us with respect to the subject matter hereof.
        This
        Confirmation constitutes a “Confirmation”
        and also
        constitutes a “Schedule”
        as
        referred to in the ISDA Master Agreement, and Paragraph 13 of a Credit Support
        Annex to the Schedule. 

      

      
        	1.    	
                This
                  Confirmation shall supplement, form a part of, and be subject to
                  an
                  agreement in the form of the ISDA Master Agreement (Multicurrency
                  - Cross
                  Border) as published and copyrighted in 1992 by the International
                  Swaps
                  and Derivatives Association, Inc. (the “ISDA
                  Master Agreement”),
                  as if Party A and Party B had executed an agreement in such form
                  on the
                  date hereof, with a Schedule as set forth in Item 3 of this Confirmation,
                  and an ISDA Credit Support Annex (Bilateral Form - ISDA Agreements
                  Subject
                  to New York Law Only version) as published and copyrighted in 1994
                  by the
                  International Swaps and Derivatives Association, Inc., with Paragraph
                  13
                  thereof as set forth in Annex A hereto (the “Credit
                  Support Annex”).
                  For the avoidance of doubt, the Transaction described herein shall
                  be the
                  sole Transaction governed by such ISDA Master Agreement. In the
                  event of
                  any inconsistency among any of the following documents, the relevant
                  document first listed shall govern: (i) this Confirmation, exclusive
                  of
                  the provisions set forth in Item 3 hereof and Annex A hereto; (ii)
                  the
                  provisions set forth in Item 3 hereof, which are incorporated by
                  reference
                  into the Schedule; (iii) the Credit Support Annex; (iv) the Definitions;
                  and (v) the ISDA Master Agreement.

              

      

      
        
 

      

      
        
          Global
            No. N606256N

          
          

        

        
          
          

          
            

          

        

        
          
          

        

        
          Page
            2
of 
            26

           

        

      

      Each
        reference herein to a “Section” (unless specifically referencing the Pooling and
        Servicing Agreement) or to a “Section” “of this Agreement” will be construed as
        a reference to a Section of the ISDA Master Agreement; each herein reference
        to
        a “Part” will be construed as a reference to the provisions herein deemed
        incorporated in a Schedule to the ISDA Master Agreement; each reference herein
        to a “Paragraph” will be construed as a reference to a Paragraph of the Credit
        Support Annex. 

      

      
        	2.    	
                The
                  terms of the particular Transaction to which this Confirmation
                  relates are
                  as follows:

              

      

      

        
          	
                  Type
                    of Transaction:

                	
                  Interest
                    Rate Swap

                
	 	 
	
                  Notional
                    Amount:

                	
                  With
                    respect to any Calculation Period, the lesser of (x) the amount
                    set forth
                    for such period on Schedule I attached hereto and (y) the aggregate
                    Certificate Principal Balance of the Offered Certificates immediately
                    preceding the Distribution Date which occurs in the calendar
                    month of the
                    Floating Rate Payer Payment Date for such Calculation Period
                    (determined
                    for this purpose without regard to any adjustment of the Floating
                    Rate
                    Payer Payment Date or Distribution Date relating to business
                    days).
                    

                
	 	 
	
                  Trade
                    Date:

                	
                  April
                    25, 2007

                
	 	 
	
                  Effective
                    Date:

                	
                  October
                    25, 2007

                
	 	 
	
                  Termination
                    Date:

                	
                  April
                    25, 2012, subject to adjustment in accordance with the Business
                    Day
                    Convention; provided, however, that for the purpose of determining
                    the
                    final Fixed Rate Payer Period End Date, Termination Date shall
                    be subject
                    to No Adjustment.

                
	 	 
	
                  Fixed
                    Amounts:

                	 
	 	 
	
                  Fixed
                    Rate Payer:

                	
                  Party
                    B

                
	 	 
	
                  Fixed
                    Rate Payer

                	 
	
                  Period
                    End Dates:

                	
                  The
                    25th
                    calendar day of each month during the Term of this Transaction,
                    commencing
                    November 25, 2007, and ending on the Termination Date, with No
                    Adjustment.

                
	 	 
	
                  Fixed
                    Rate Payer

                	 
	
                  Payment
                    Dates:

                	
                  Early
                    Payment shall be applicable. The Floating Rate Payer Payment
                    Date shall be
                    one (1) Business Day preceding each Fixed Rate Payer Period End
                    Date.

                
	 	 
	
                  Fixed
                    Rate:

                	
                  4.9675%

                
	 	 
	
                  Fixed
                    Rate Day 

                	 
	
                  Count
                    Fraction:

                	
                  30/360

                
	 	 
	 	 
	
                  Floating
                    Amounts:

                	 
	 	 
	
                  Floating
                    Rate Payer:

                	
                  Party
                    A

                
	 	 
	
                  Floating
                    Rate Payer

                	 
	
                  Period
                    End Dates:

                	
                  The
                    25th
                    calendar day of each month during the Term of this Transaction,
                    commencing
                    November 25, 2007 and ending on the Termination Date, subject
                    to
                    adjustment in accordance with the Business Day
                    Convention.

                
	 	 

        

         

          
            
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                  Floating
                    Rate Payer 

                	 
	
                  Payment
                    Dates:

                	
                  Early
                    Payment shall be applicable. The Floating Rate Payer Payment
                    Date shall be
                    one (1) Business Day preceding each Floating Rate Payer Period
                    End
                    Date.

                
	 	 
	
                  Floating
                    Rate Option:

                	
                  USD-LIBOR-BBA

                
	 	 
	
                   

                	 
	
                  Designated
                    Maturity:

                	
                  One
                    month

                
	 	 
	
                  Floating
                    Rate Day 

                	 
	
                  Count
                    Fraction:

                	
                  Actual/360

                
	 	 
	
                  Reset
                    Dates:

                	
                  The
                    first day of each Calculation Period.

                
	 	 
	
                  Compounding:

                	
                  Inapplicable

                
	 	 
	
                  Business
                    Days:

                	
                  New
                    York

                
	 	 
	
                  Business
                    Day Convention:

                	
                  Following

                
	 	 
	
                  Calculation
                    Agent:

                	
                  Party
                    A

                

        

      

       

      
        	
                3.

              	
                Provisions
                  Deemed Incorporated in a Schedule to the ISDA Master
                  Agreement:

              

      

      

      
        	
                Part
                  1.

              	
                Termination
                  Provisions.

              

      

      

      For
        the
        purposes of this Agreement:-

      

      
        	(a)   	
                “Specified
                  Entity”
                  will not apply to Party A or Party B for any purpose.
                  

              

      

      

      
        	
                (b)

              	
                “Specified
                  Transaction”
                  will have the meaning specified in Section
                  14.

              

      

      

      
        	
                (c)

              	
                Events
                  of Default.

              

      

      

      The
        statement below that an Event of Default will apply to a specific party means
        that upon the occurrence of such an Event of Default with respect to such
        party,
        the other party shall have the rights of a Non-defaulting Party under Section
        6
        of this Agreement; conversely, the statement below that such event will not
        apply to a specific party means that the other party shall not have such
        rights.

      

      
        	
              	(i)	
                The
                  “Failure
                  to Pay or Deliver”
                  provisions of Section 5(a)(i) will apply to Party A and will apply
                  to
                  Party B; provided, however, that Section 5(a)(i) is hereby amended
                  by
                  replacing the word “third” with the word “first”; provided, further, that
                  notwithstanding anything to the contrary in Section 5(a)(i), any
                  failure
                  by Party A to comply with or perform any obligation to be complied
                  with or
                  performed by Party A under the Credit Support Annex shall not constitute
                  an Event of Default under Section 5(a)(i) unless (A) a Required
                  Ratings
                  Downgrade Event has occurred and been continuing for 30 or more
                  Local
                  Business Days and (B) such failure is not remedied on or before
                  the third
                  Local Business Day after notice of such failure is given to Party
                  A.

              

      

      

      
        	
              	(ii)	
                The
                  “Breach
                  of Agreement”
                  provisions of Section 5(a)(ii) will apply to Party A and will not
                  apply to
                  Party B.

              

      

       

      
        
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              	(iii)	
                The
                  “Credit
                  Support Default”
                  provisions of Section 5(a)(iii) will apply to Party A and will
                  not apply
                  to Party B except that Section 5(a)(iii)(1) will apply to Party
                  B solely
                  in respect of Party B’s obligations under Paragraph 3(b) of the Credit
                  Support Annex; provided, however, that notwithstanding anything
                  to the
                  contrary in Section 5(a)(iii)(1), any failure by Party A to comply
                  with or
                  perform any obligation to be complied with or performed by Party
                  A under
                  the Credit Support Annex shall not constitute an Event of Default
                  under
                  Section 5(a)(iii) unless (A) a Required Ratings Downgrade Event
                  has
                  occurred and been continuing for 30 or more Local Business Days
                  and (B)
                  such failure is not remedied on or before the third Local Business
                  Day
                  after notice of such failure is given to Party
                  A.

              

      

      

      
        	
              	(iv)	
                The
                  “Misrepresentation”
                  provisions of Section 5(a)(iv) will apply to Party A and will not
                  apply to
                  Party B. 

              

      

      

      
        	
              	(v)	
                The
                  “Default
                  under Specified Transaction”
                  provisions of Section 5(a)(v) will apply to Party A and will not
                  apply to
                  Party B.

              

      

      

      
        	
              	(vi)	
                The
                  “Cross
                  Default”
                  provisions of Section 5(a)(vi) will apply to Party A and will not
                  apply to
                  Party B, provided, however, that, notwithstanding the foregoing,
                  an Event
                  of Default shall not occur under either Section 5(a)(vi)(1) or
                  Section
                  5(a)(vi)(2) if (A) (I) the default, or other similar event or condition
                  referred to in Section 5(a)(vi)(1) or the failure to pay referred
                  to in
                  Section 5(a)(vi)(2) is a failure to pay or deliver caused by an
                  error or
                  omission of an administrative or operational nature, and (II) funds
                  or the
                  asset to be delivered were available to such party to enable it
                  to make
                  the relevant payment or delivery when due and (III) such payment
                  or
                  delivery is made within three (3) Local Business Days following
                  receipt of
                  written notice from an interested party of such failure to pay,
                  or (B)
                  such party was precluded from paying, or was unable to pay, using
                  reasonable means, through the office of the party through which
                  it was
                  acting for purposes of the relevant Specified Indebtedness, by
                  reason of
                  force majeure, act of State, illegality or impossibility.
                  

              

      

      For
        purposes of Section 5(a)(vi), solely with respect to Party A:

      

      “Specified
        Indebtedness” will have the meaning specified in Section 14 ,except that such
        term shall not include obligations in respect of deposits received in the
        ordinary course of Party A’s banking business.

      

      “Threshold
        Amount” means with respect to Party A an amount equal to three percent (3%) of
        the Shareholders’ Equity of Party A or, if applicable, the Eligible Guarantor.

      

      “Shareholders’
        Equity” means with respect to an entity, at any time, the sum (as shown in the
        most recent annual audited financial statements of such entity) of (i) its
        capital stock (including preferred stock) outstanding, taken at par value,
        (ii)
        its capital surplus and (iii) its retained earnings, minus (iv) treasury
        stock,
        each to be determined in accordance with generally accepted accounting
        principles.

      

      
        	
              	(vii)	
                The
                  “Bankruptcy”
                  provisions of Section 5(a)(vii) will apply to Party A and will
                  apply to
                  Party B except that the provisions of Section 5(a)(vii)(2), (6)
                  (to the
                  extent that such provisions refer to any appointment contemplated
                  or
                  effected by the Pooling and Servicing Agreement or any appointment
                  to
                  which Party B has not become subject), (7) and (9) will not apply
                  to Party
                  B; provided that, with respect to Party B only, Section 5(a)(vii)(4)
                  is
                  hereby amended by adding after the words “against it” the words
                  “(excluding any proceeding or petition instituted or presented by
                  Party A
                  or its Affiliates)”, and Section 5(a)(vii)(8) is hereby amended by
                  deleting the words “to (7) inclusive” and inserting lieu thereof “, (3),
                  (4) as amended, (5), (6) as amended, or
                  (7)”.

              

      

      

      
        	
              	(viii)	
                The
                  “Merger
                  Without Assumption”
                  provisions of Section 5(a)(viii) will apply to Party A and will
                  apply to
                  Party B.

              

      

      

      
        	(d)	
                Termination
                  Events.

              

      

      

      
        
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      The
        statement below that a Termination Event will apply to a specific party means
        that upon the occurrence of such a Termination Event, if such specific party
        is
        the Affected Party with respect to a Tax Event, the Burdened Party with respect
        to a Tax Event Upon Merger (except as noted below) or the non-Affected Party
        with respect to a Credit Event Upon Merger, as the case may be, such specific
        party shall have the right to designate an Early Termination Date in accordance
        with Section 6 of this Agreement; conversely, the statement below that such
        an
        event will not apply to a specific party means that such party shall not
        have
        such right; provided, however, with respect to “Illegality” the statement that
        such event will apply to a specific party means that upon the occurrence
        of such
        a Termination Event with respect to such party, either party shall have the
        right to designate an Early Termination Date in accordance with Section 6
        of
        this Agreement.

      

      
        	
              	(i)	
                The
                  “Illegality”
                  provisions of Section 5(b)(i) will apply to Party A and will apply
                  to
                  Party B.

              

      

      

      
        	 	
                (ii)

              	
                The
                  “Tax
                  Event”
                  provisions of Section 5(b)(ii) will apply to Party A except that,
                  for
                  purposes of the application of Section 5(b)(ii) to Party A, Section
                  5(b)(ii) is hereby amended by deleting the words “(x) any action taken by
                  a taxing authority, or brought in a court of competent jurisdiction,
                  on or
                  after the date on which a Transaction is entered into (regardless
                  of
                  whether such action is taken or brought with respect to a party
                  to this
                  Agreement) or (y)”, and the “Tax
                  Event”
                  provisions of Section 5(b)(ii) will apply to Party B.
                  

              

      

      

      
        	 	
                (iii)

              	
                The
                  “Tax
                  Event Upon Merger”
                  provisions of Section 5(b)(iii) will apply to Party A and will
                  apply to
                  Party B, provided that Party A shall not be entitled to designate
                  an Early
                  Termination Date by reason of a Tax Event upon Merger in respect
                  of which
                  it is the Affected Party.

              

      

      

      
        	 	
                (iv)

              	
                The
                  “Credit
                  Event Upon Merger”
                  provisions of Section 5(b)(iv) will not apply to Party A and will
                  not
                  apply to Party B.

              

      

      

      
        	
                (e)

              	
                The
                  “Automatic
                  Early Termination”
                  provision of Section 6(a) will not apply to Party A and will not
                  apply to
                  Party B.

              

      

      

      
        	(f)    	
                Payments
                  on Early Termination.
                  For the purpose of Section 6(e) of this
                  Agreement:

              

      

      

      
        	
              	(i)	
                Market
                  Quotation will apply, provided, however, that, in the event of
                  a
                  Derivative Provider Trigger Event, the following provisions will
                  apply:

              

      

      

      
        	 	
                (A)
                  

              	
                The
                  definition of Market Quotation in Section 14 shall be deleted in
                  its
                  entirety and replaced with the
                  following:

              

      

      

      “Market
        Quotation” means,
        with respect to one or more Terminated Transactions, a Firm Offer which is
        (1)
        made by a Reference Market-maker that is an Eligible Replacement, (2) for
        an
        amount that would be paid to Party B (expressed as a negative number) or
        by
        Party B (expressed as a positive number) in consideration of an agreement
        between Party B and such Reference Market-maker to enter into a Replacement
        Transaction, and (3) made on the basis that Unpaid Amounts in respect of
        the
        Terminated Transaction or group of Transactions are to be excluded but, without
        limitation, any payment or delivery that would, but for the relevant Early
        Termination Date, have been required (assuming satisfaction of each applicable
        condition precedent) after that Early Termination Date is to be
        included.

      

      
        	 	
                (B)

              	
                The
                  definition of Settlement Amount shall be deleted in its entirety
                  and
                  replaced with the following:

              

      

      

      “Settlement
        Amount”
        means,
        with respect to any Early Termination Date, an amount (as determined by Party
        B)
        equal to: 

      

      
        	 	
                (a)

              	
                If
                  a Market Quotation for the relevant Terminated Transaction or group
                  of
                  Terminated Transactions is accepted by Party B so as to become
                  legally
                  binding on or before the day falling ten Local Business Days after
                  the day
                  on which the Early Termination Date is designated, or such later
                  day as
                  Party B may specify in writing to Party A, but in either case no
                  later
                  than one Local Business Day prior to the Early Termination Date
                  (such day,
                  the “Latest Settlement Amount Determination Day”), the Termination
                  Currency Equivalent of the amount (whether positive or negative)
                  of such
                  Market Quotation; 

              

      

      
        

        
          
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                (b)

              	
                If,
                  on the Latest Settlement Amount Determination Day, no Market Quotation
                  for
                  the relevant Terminated Transaction or group of Terminated Transactions
                  has been accepted by Party B so as to become legally binding and
                  one or
                  more Market Quotations from
                  Approved Replacements have
                  been made and remain capable of becoming legally binding upon acceptance,
                  the Settlement Amount shall equal the Termination Currency Equivalent
                  of
                  the amount (whether positive or negative) of the lowest of such
                  Market
                  Quotations (for the avoidance of doubt, the lowest of such Market
                  Quotations shall be the lowest Market Quotation of
                  such Market Quotations
                  expressed as a positive number or, if any of such Market Quotations
                  is
                  expressed as a negative number, the Market Quotation expressed
                  as a
                  negative number with the largest absolute value);
                  or

              

      

      

      
        	 	
                (c)

              	
                If,
                  on the Latest Settlement Amount Determination Day, no Market Quotation
                  for
                  the relevant Terminated Transaction or group of Terminated Transactions
                  is
                  accepted by Party B so as to become legally binding and no Market
                  Quotation from an Approved Replacement remains capable of becoming
                  legally
                  binding upon acceptance, the Settlement Amount shall equal Party
                  B’s Loss
                  (whether positive or negative and without reference to any Unpaid
                  Amounts)
                  for the relevant Terminated Transaction or group of Terminated
                  Transactions.

              

      

      

      
        	 	
                (C)

              	
                If
                  Party B requests Party A in writing to obtain Market Quotations,
                  Party A
                  shall use its reasonable efforts to do so before the Latest Settlement
                  Amount Determination Day.

              

      

      

      
        	 	
                (D)

              	
                If
                  the Settlement Amount is a negative number, Section 6(e)(i)(3)
                  shall be
                  deleted in its entirety and replaced with the
                  following:

              

      

      

      “(3)
        Second
        Method and Market Quotation.
        If the
        Second Method and Market Quotation apply, (I) Party B shall pay to Party
        A an
        amount equal to the absolute value of the Settlement Amount in respect of
        the
        Terminated Transactions, (II) Party B shall pay to Party A the Termination
        Currency Equivalent of the Unpaid Amounts owing to Party A and (III) Party
        A
        shall pay to Party B the Termination Currency Equivalent of the Unpaid Amounts
        owing to Party B; provided, however, that (x) the amounts payable under the
        immediately preceding clauses (II) and (III) shall be subject to netting
        in
        accordance with Section 2(c) of this Agreement and (y) notwithstanding any
        other
        provision of this Agreement, any amount payable by Party A under the immediately
        preceding clause (III) shall not be netted-off against any amount payable
        by
        Party B under the immediately preceding clause (I).”

       

      
        	 	
                (E)

              	
                At
                  any time on or before the Latest Settlement Amount Determination
                  Day at
                  which two or more Market Quotations from Approved Replacements
                  remain
                  capable of becoming legally binding upon acceptance, Party B shall
                  be
                  entitled to accept only the lowest of such Market Quotations (for
                  the
                  avoidance of doubt, the lowest of such Market Quotations shall
                  be the
                  lowest Market Quotation of such Market Quotations expressed as
                  a positive
                  number or, if any of such Market Quotations is expressed as a negative
                  number, the Market Quotation expressed as a negative number with
                  the
                  largest absolute value).

              

      

      

      
        	
              	(ii)	
                The
                  Second Method will apply.

              

      

      

      
        	(g)   	
                “Termination
                  Currency”
                  means USD.

              

      

      

      
        	(h)   	
                Additional
                  Termination Events.
                  Additional Termination Events will apply as provided in Part 5(c).
                  

              

      

      
        

        
          
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      Part
        2.  Tax
        Matters.

      

      
        	(a)   	
                Tax
                  Representations. 

              

      

      

      
        	 	
                (i)

              	
                Payer
                  Representations.
                  For the purpose of Section 3(e) of this Agreement:
                  

              

      

       

      
        	
              	(A)	
                Party
                  A makes the following
                  representation(s):

              

      

      

      It
        is not
        required by any applicable law, as modified by the practice of any relevant
        governmental revenue authority, of any Relevant Jurisdiction to make any
        deduction or withholding for or on account of any Tax from any payment (other
        than interest under Section 2(e), 6(d)(ii) or 6(e) of this Agreement) to
        be made
        by it to the other party under this Agreement. In making this representation,
        it
        may rely on: the accuracy of any representations made by the other party
        pursuant to Section 3(f) of this Agreement; (ii) the satisfaction of the
        agreement contained in Section 4(a)(i) or 4(a)(iii) of this Agreement and
        the
        accuracy and effectiveness of any document provided by the other party pursuant
        to Section 4(a)(i) or 4(a)(iii) of this Agreement; and (iii) the satisfaction
        of
        the agreement of the other party contained in Section 4(d) of this Agreement,
        provided that it shall not be a breach of this representation where reliance
        is
        placed on clause (ii) and the other party does not deliver a form or document
        under Section 4(a)(iii) by reason of material prejudice to its legal or
        commercial position.

       

      
        	
              	(B)	
                Party
                  B makes the following
                  representation(s):

              

      

      

      None.

      

      
        	
              	(ii)	
                Payee
                  Representations.
                  For the purpose of Section 3(f) of this Agreement:
                  

              

      

       

      
        	
              	(A)	
                Party
                  A makes the following
                  representation(s):

              

      

      

      It
        is a
“foreign person” within the meaning of the applicable U.S. Treasury Regulations
        concerning information reporting and backup withholding tax (as in effect
        on
        January 1, 2001), unless Party A provides written notice to Party B that
        it is
        no longer a foreign person. In respect of any Transaction it enters into
        through
        an office or discretionary agent in the United States or which otherwise
        is
        allocated for United States federal income tax purposes to such United States
        trade or business, each payment received or to be received by it under such
        Transaction will be effectively connected with its conduct of a trade or
        business in the United States.

       

      
        	
              	(B)	
                Party
                  B makes the following
                  representation(s):

              

      

      

      None. 

      

      
        	
                (b)

              	
                Tax
                  Provisions.

              

      

      

      
        	 	
                (i)

              	
                Gross
                  Up.
                  Section 2(d)(i)(4) shall not apply to Party B as X, and Section
                  2(d)(ii)
                  shall not apply to Party B as Y, in each case such that Party B
                  shall not
                  be required to pay any additional amounts referred to
                  therein.

              

      

      

      
        	 	
                (ii)

              	
                Indemnifiable
                  Tax.
                  The definition of “Indemnifiable Tax” in Section 14 is deleted in its
                  entirety and replaced with the
                  following:

              

      

       

      “Indemnifiable
        Tax”
        means,
        in relation to payments by Party A, any Tax and, in relation to payments
        by
        Party B, no Tax. 

      
        

        
          
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      Part
        3.  Agreement
        to Deliver Documents.  

      

      
        	(a)   	
                For
                  the purpose of Section 4(a)(i), tax forms, documents, or certificates
                  to
                  be delivered are:

              

      

      

      
        	
                Party
                  required to deliver document

              	 	
                Form/Document/

                Certificate

              	 	
                 

                Date
                  by which to

                be
                  delivered

              
	 	 	 	 	 
	
                Party
                  A

                 

              	 	
                A
                  correct, complete and duly executed U.S. Internal Revenue Service
                  Form
                  W-8ECI or other applicable form (or successor thereto), together
                  with
                  appropriate attachments, that eliminates U.S. federal withholding
                  and
                  backup withholding Tax on payments to Party A under this
                  Agreement.

                 

              	 	
                (i)
                  upon execution of this Agreement, (ii) on or before the first payment
                  date
                  under this Agreement, including any Credit Support Document, (iii)
                  promptly upon the reasonable demand by Party B, (iv) prior to the
                  expiration or obsolescence of any previously delivered form, and
                  (v)
                  promptly upon the information on any such previously delivered
                  form
                  becoming inaccurate or incorrect.

              
	 	 	 	 	 
	
                Party
                  B

                 

              	 	
                Party
                  B will deliver at closing an original properly completed and executed
                  United States Internal Revenue Service Form W-9 or other applicable
                  form
                  (or any successor thereto) with respect to any payments received
                  or to be
                  received by Party A, that eliminates U.S. federal withholding and
                  backup
                  withholding Tax on payments to Party A under this Agreement, and
                  may
                  deliver other tax forms relating to the beneficial owner of payments
                  to
                  Party B under this Agreement from time to time.

              	 	
                (i)
                  upon execution of this Agreement, (ii) on or before the first payment
                  date
                  under this Agreement, including any Credit Support Document, (iii)
                  promptly upon the reasonable demand by Party B, (iv) prior to the
                  expiration or obsolescence of any previously delivered form, and
                  (v)
                  promptly upon the information on any such previously delivered
                  form
                  becoming inaccurate or incorrect.

              

      

      
        

        
          
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        	(b)   	
                For
                  the purpose of Section 4(a)(ii), other documents to be delivered
                  (unless
                  otherwise publicly available) are:

              

      

      

      
        	
                Party
                  required to deliver document

              	 	
                Form/Document/

                Certificate

              	 	
                Date
                  by which to

                be
                  delivered

              	 	
                Covered
                  by Section 3(d) Representation

              
	 	 	 	 	 	 	 
	
                Party
                  A and

                Party
                  B

                 

              	 	
                Any
                  documents required by the receiving party to evidence the authority
                  of the
                  delivering party or its Credit Support Provider, if any, for it
                  to execute
                  and deliver the Agreement, this Confirmation, and any Credit Support
                  Documents to which it is a party, and to evidence the authority
                  of the
                  delivering party or its Credit Support Provider to perform its
                  obligations
                  under the Agreement, this Confirmation and any Credit Support Document,
                  as
                  the case may be

              	 	
                Upon
                  the execution and delivery of this Agreement

                 

              	 	
                Yes

                 

              
	 	 	 	 	 	 	 
	
                Party
                  A and

                Party
                  B

                 

              	 	
                A
                  certificate of an authorized officer of the party, as to the incumbency
                  and authority of the respective officers of the party signing the
                  Agreement, this Confirmation, and any relevant Credit Support Document,
                  as
                  the case may be

              	 	
                Upon
                  the execution and delivery of this Agreement

              	 	
                Yes

              
	 	 	 	 	 	 	 
	
                Party
                  A

                 

              	 	
                Annual
                  Report of Party A containing consolidated financial statements
                  certified
                  by independent certified public accountants and prepared in accordance
                  with generally accepted accounting principles in the country in
                  which
                  Party A is organized

              	 	
                Promptly
                  upon becoming publicly available

              	 	
                Yes

              
	 	 	 	 	 	 	 
	
                Party
                  A

                 

              	 	
                Quarterly
                  Financial Statements of Party A containing unaudited, consolidated
                  financial statements of Party A’s fiscal quarter prepared in accordance
                  with generally accepted accounting principles in the country in
                  which
                  Party A is organized

                 

              	 	
                Promptly
                  upon becoming publicly available

                 

              	 	
                Yes

                 

              
	 	 	 	 	 	 	 
	
                Party
                  A

                 

              	 	
                An
                  opinion of counsel to Party A acceptable in form and substance
                  to Party
                  B

                 

              	 	
                Upon
                  the execution and delivery of this Agreement

                 

              	 	
                No

                 

              

      

      

      Part
        4. Miscellaneous. 

      

      
        	
                (a)

              	
                Address
                  for Notices:
                  For the purposes of Section 12(a) of this
                  Agreement:

              

      

      

      Address
        for notices or communications to Party A: 

       

      Any
        notice to Party A relating to a particular Transaction shall be delivered
        to the
        address or facsimile number specified in the Confirmation of such Transaction.
        Any notice delivered for purposes of Sections 5 and 6 (other than notices
        under
        Section 5(a)(i) with respect to Party A) of this Agreement shall be delivered
        to
        the following address: 

      
        

        
          
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                  Deutsche
                    Bank AG, Head Office 

                
	 	
                  Taunusanlage
                    12 

                
	 	
                  60262
                    Frankfurt 

                
	 	
                  GERMANY
                    

                
	 	
                  Attention:
                    Legal Department 

                
	 	
                  Fax
                    No: 0049 69 910 36097

                
	 	 
	
                  (For
                    all purposes)

                	 

        

        Address
          for notices or communications to Party B:

        

          
            	
                    Address:

                  	
                    HSBC
                      BANK USA, National Association 

                  
	 	
                    CTLA
                      - Structured Finance 

                  
	 	
                    452
                      Fifth Avenue 

                  
	 	
                    New
                      York, NY  10018

                  
	
                    Attention:

                  	
                    Susie
                      Moy

                  
	
                    Tel:

                  	
                    212-525-1362

                  
	 	 
	 	 
	
                    with
                      a copy to:

                  	 
	 	 
	
                    Address:

                  	
                    Wells
                      Fargo Bank, N.A.

                  
	 	
                    9062
                      Old Annapolis Road

                  
	 	
                    Columbia,
                      Maryland 21045

                  
	
                    Attention:

                  	
                    Client
                      Manager Ace 2007-HE4

                  
	
                    Tel:

                  	
                    410-884-2000

                  
	
                    Fax:

                  	
                    410-715-2380

                  
	 	 
	
                    (For
                      all purposes)

                  	 

          

           

        

      

      
        
          
            
              
                	
                        (b)   

                      	
                        Process
                          Agent. For the purpose of Section
                          13(c):

                      

              

            

          

        

      

      

      Party
        A
        appoints as its Process Agent: Not applicable.

      

      Party
        B
        appoints as its Process Agent: Not applicable.

      

      
        	
                (c)

              	
                Offices.
                  The provisions of Section 10(a) will apply to this Agreement; neither
                  Party A nor Party B has any Offices other than as set forth in
                  the Notices
                  Section and Party A agrees that, for purposes of Section 6(b) of
                  this
                  Agreement, it shall not in the future have any Office other than
                  one in
                  the United States.

              

      

      

      
        	
                (d)

              	
                Multibranch
                  Party.
                  For the purpose of Section 10(c) of this
                  Agreement:

              

      

      

      Party
        A
        is not a Multibranch Party.

      

      
        	 	
                Party
                  B is not a Multibranch Party.

              

      

      

      
        	
                (e)

              	
                Calculation
                  Agent.
                  The Calculation Agent is Party A; provided, however, that if an
                  Event of
                  Default shall have occurred with respect to Party A, Party B shall
                  have
                  the right to appoint as Calculation Agent a third party, reasonably
                  acceptable to Party A, the cost for which shall be borne by Party
                  A.

              

      

      

      
        	(f)    	
                Credit
                  Support Document. 

              

      

       

      
        	 	
                Party
                  A:

              	
                The
                  Credit Support Annex, and any guarantee in support of Party A’s
                  obligations under this Agreement.

              

      

       

      
        
          
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                    Party
                      B:

                  	
                    The
                      Credit Support Annex, solely in respect of Party B’s obligations under
                      Paragraph 3(b) of the Credit Support
                      Annex.

                  

          

        

      

      

      
        	
                (g)

              	
                Credit
                  Support Provider.

              

      

      

      
        	
              	Party
                A:	
                The
                  guarantor under any guarantee in support of Party A’s obligations under
                  this Agreement.

              

      

      

      
        	
              	PartyB:	
                None.

              

      

      

      
        	
                (h)

              	
                Governing
                  Law.
                  The parties to this Agreement hereby agree that the law of the
                  State of
                  New York shall govern their rights and duties in whole, without
                  regard to
                  the conflict of law provisions thereof other than New York General
                  Obligations Law Sections 5-1401 and 5-1402.

              

      

      

      
        	
                (i)

              	
                Netting
                  of Payments.
                  The parties agree that subparagraph (ii) of Section 2(c) will apply
                  to
                  each Transaction hereunder. 

              

      

      

      
        	
                (j)

              	
                Affiliate.
                  “Affiliate”
                  shall have the meaning assigned thereto in Section 14; provided,
                  however,
                  that Party B shall be deemed to have no Affiliates for purposes
                  of this
                  Agreement, including for purposes of Section
                  6(b)(ii).

              

      

      
         

        
          
            
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Part
        5.  Others
        Provisions.

      

      
        	
                (a)

              	
                Definitions.
                  Unless
                  otherwise specified in a Confirmation, this Agreement and each
                  Transaction
                  under this Agreement are subject to the 2000 ISDA Definitions as
                  published
                  and copyrighted in 2000 by the International Swaps and Derivatives
                  Association, Inc. (the “Definitions”),
                  and will be governed in all relevant respects by the provisions
                  set forth
                  in the Definitions, without regard to any amendment to the Definitions
                  subsequent to the date hereof. The provisions of the Definitions
                  are
                  hereby incorporated by reference in and shall be deemed a part
                  of this
                  Agreement, except that (i) references in the Definitions to a “Swap
                  Transaction” shall be deemed references to a “Transaction” for purposes of
                  this Agreement, and (ii) references to a “Transaction” in this Agreement
                  shall be deemed references to a “Swap Transaction” for purposes of the
                  Definitions. Each term capitalized but not defined in this Agreement
                  shall
                  have the meaning assigned thereto in the Pooling and Servicing
                  Agreement.

              

      

       

      (b) Amendments
        to ISDA Master Agreement.

      

      
        	 	
                (i)

              	
                Single
                  Agreement.
                  Section 1(c) is hereby amended by the adding the words “including, for the
                  avoidance of doubt, the Credit Support Annex” after the words “Master
                  Agreement”. 

              

      

      

      
        	
              	(ii)	
                Conditions
                  Precedent. Section
                  2(a)(iii) is hereby amended by adding the following at the end
                  thereof:
                  

              

      

      

      Notwithstanding
        anything to the contrary in Section 2(a)(iii)(1), if an Event of Default
        with
        respect to Party B or Potential Event of Default with respect to Party B
        has
        occurred and been continuing for more than 30 Local Business Days and no
        Early
        Termination Date in respect of the Affected Transactions has occurred or
        been
        effectively designated by Party A, the obligations of Party A under Section
        2(a)(i) shall cease to be subject to the condition precedent set forth in
        Section 2(a)(iii)(1) with respect to such specific occurrence of such Event
        of
        Default or such Potential Event of Default (the “Specific
        Event”);
        provided, however, for the avoidance of doubt, the obligations of Party A
        under
        Section 2(a)(i) shall be subject to the condition precedent set forth in
        Section
        2(a)(iii)(1) (subject to the foregoing) with respect to any subsequent
        occurrence of the same Event of Default with respect to Party B or Potential
        Event of Default with respect to Party B after the Specific Event has ceased
        to
        be continuing and with respect to any occurrence of any other Event of Default
        with respect to Party B or Potential Event of Default with respect to Party
        B
        that occurs subsequent to the Specific Event. 

      

      
        	 	
                (iii)

              	
                Change
                  of Account.
                  Section 2(b) is hereby amended by the addition of the following
                  after the
                  word “delivery” in the first line
                  thereof:

              

      

       

      “to
        another account in the same legal and tax jurisdiction as the original
        account”.

      

      
        	 	
                (iv)

              	
                Representations.
                  Section 3 is hereby amended by adding at the end thereof the following
                  subsection (g): 

              

      

      

      
        	 	
                “(g)

              	
                Relationship
                  Between Parties. 

              

      

      

      
        	 	
                (1)

              	
                Nonreliance.
                  (i) It is not relying on any statement or representation of the
                  other
                  party regarding the Transaction (whether written or oral), other
                  than the
                  representations expressly made in this Agreement or the Confirmation
                  in
                  respect of that Transaction and (ii) it has consulted with its
                  own legal,
                  regulatory, tax, business, investment, financial and accounting
                  advisors
                  to the extent it has deemed necessary, and it has made its own
                  investment,
                  hedging and trading decisions based upon its own judgment and upon
                  any
                  advice from such advisors as it has deemed necessary and not upon
                  any view
                  expressed by the other party.

              

      

       

      
        	 	
                (2)

              	
                Evaluation
                  and Understanding. (i) It has the capacity to evaluate (internally
                  or
                  through independent professional advice) the Transaction and has
                  made its
                  own decision to enter into the Transaction and (ii) It understands
                  the
                  terms, conditions and risks of the Transaction and is willing and
                  able to
                  accept those terms and conditions and to assume those risks, financially
                  and otherwise. 

              

      

      
         

        
          
            
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                (3)

              	
                Purpose.
                  It is entering into the Transaction for the purposes of managing
                  its
                  borrowings or investments, hedging its underlying assets or liabilities
                  or
                  in connection with a line of business.

              

      

      

      
        	 	
                (4)

              	
                Status
                  of Parties. The other party is not acting as an agent, fiduciary
                  or
                  advisor for it in respect of the Transaction.

              

      

      

      
        	 	
                (5)

              	
                Eligible
                  Contract Participant. It is an “eligible swap participant” as such term is
                  defined in, Section 35.1(b)(2) of the regulations (17 C.F.R. 35)
                  promulgated under, and an “eligible contract participant” as defined in
                  Section 1(a)(12) of the Commodity Exchange Act, as
                  amended.”

              

      

      

      
        	 	
                (v)

              	
                Transfer
                  to Avoid Termination Event.
                  Section 6(b)(ii) is hereby amended by (i) deleting the words “or if a Tax
                  Event Upon Merger occurs and the Burdened Party is the Affected
                  Party,”
                  and (ii) by deleting the words “to transfer” and inserting the words “to
                  effect a Permitted Transfer” in lieu
                  thereof.

              

      

      

      
        	 	
                (vi)

              	
                Jurisdiction.
                  Section
                  13(b) is hereby amended by: (i) deleting in the second line of
                  subparagraph (i) thereof the word "non-", (ii) deleting “; and” from the
                  end of subparagraph 1 and inserting “.” in lieu thereof, and (iii)
                  deleting the final paragraph
                  thereof.

              

      

      

      
        	 	
                (vii)

              	
                Local
                  Business Day.
                  The definition of Local Business Day in Section 14 is hereby amended
                  by
                  the addition of the words “or any Credit Support Document” after “Section
                  2(a)(i)” and the addition of the words “or Credit Support Document” after
                  “Confirmation”. 

              

      

      

      
        	
                (c)

              	
                Additional
                  Termination Events.
                  The following Additional Termination Events will
                  apply:

              

      

      

      
        	
              	(i)	
                First
                  Rating Trigger Collateral.
                  If
                  (A) it is not the case that a Moody’s Second Trigger Ratings Event has
                  occurred and been continuing for 30 or more Local Business Days
                  and (B)
                  Party
                  A has failed to comply with or perform any obligation to be complied
                  with
                  or performed by Party A in accordance with the Credit Support Annex,
                  then
                  an Additional Termination Event shall have occurred with respect
                  to Party
                  A and Party A shall be the sole Affected Party with respect to
                  such
                  Additional Termination Event. 

              

      

      

      
        	
              	(ii)	
                Second
                  Rating Trigger Replacement.
                  If
                  (A) a Required Ratings Downgrade Event has occurred and been continuing
                  for 30 or more Local Business Days and (B) (i) at least one Eligible
                  Replacement has made a Firm Offer to be the transferee of all of
                  Party A’s
                  rights and obligations under this Agreement (and such Firm Offer
                  remains
                  an offer that will become legally binding upon such Eligible Replacement
                  upon acceptance by the offeree) and/or (ii) an Eligible Guarantor
                  has made
                  a Firm Offer to provide an Eligible Guarantee (and such Firm Offer
                  remains
                  an offer that will become legally binding upon such Eligible Guarantor
                  immediately upon acceptance by the offeree), then an Additional
                  Termination Event shall have occurred with respect to Party A and
                  Party A
                  shall be the sole Affected Party with respect to such Additional
                  Termination Event. 

              

      

      

      
        	
              	(iii)	
                Amendment
                  of Pooling and Servicing Agreement.
                  If, without the prior written consent of Party A where such consent
                  is
                  required under the Pooling and Servicing Agreement (such consent
                  not to be
                  unreasonably withheld), an amendment is made to the Pooling and
                  Servicing
                  Agreement which amendment could reasonably be expected to have
                  a material
                  adverse effect on the interests of Party A (excluding, for the
                  avoidance
                  of doubt, any amendment to the Pooling and Servicing Agreement
                  that is
                  entered into solely for the purpose of appointing a successor servicer,
                  master servicer, securities administrator, trustee or other service
                  provider) under this Agreement, an Additional Termination Event
                  shall have
                  occurred with respect to Party B and Party B shall be the sole
                  Affected
                  Party with respect to such Additional Termination Event.
                  

              

      

      
         

        
          
            
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                (iv)

              	
                Failure
                  to Comply with Regulation AB Requirements. If,
                  upon the occurrence of a Disclosure Event (as defined in Part 5(e)
                  below)
                  Party A has not complied with any of the provisions set forth in
                  clause
                  (iii) of Part 5(e) below, then an Additional Termination Event
                  shall have
                  occurred with respect to Party A and Party A shall be the sole
                  Affected
                  Party with respect to such Additional Termination
                  Event.

              

      

       

      
        	
              	(iv)	
                Optional
                  Termination of Securitization.
                  An
                  Additional Termination Event shall occur upon the notice to
                  Certificateholders of an Optional Termination becoming unrescindable
                  in
                  accordance with Article X of the Pooling and Servicing Agreement
                  (such
                  notice, the “Optional
                  Termination Notice”).
                  With respect to such Additional Termination Event: (A) Party B
                  shall be
                  the sole Affected Party; (B) notwithstanding anything to the contrary
                  in
                  Section 6(b)(iv) or Section 6(c)(i), the final Distribution Date
                  specified
                  in the Optional Termination Notice is hereby designated as the
                  Early
                  Termination Date for this Additional Termination Event in respect
                  of all
                  Affected Transactions; (C) Section 2(a)(iii)(2) shall not be applicable
                  to
                  any Affected Transaction in
                  connection with the Early Termination Date resulting from this
                  Additional
                  Termination Event; notwithstanding anything to the contrary in
                  Section
                  6(c)(ii), payments and deliveries under Section 2(a)(i) or Section
                  2(e) in
                  respect of the Terminated Transactions resulting from this Additional
                  Termination Event will be required to be made through and including
                  the
                  Early Termination Date designated
                  as a result of this Additional Termination Event; provided, for
                  the
                  avoidance of doubt, that any such payments or deliveries that are
                  made on
                  or prior to such Early Termination Date will not be treated as
                  Unpaid
                  Amounts in determining the amount payable in respect of such Early
                  Termination Date; (D) notwithstanding anything to the contrary
                  in Section
                  6(d)(i), (I) if, no later than 4:00 pm New York City time on the
                  day that
                  is four Business Days prior to the final Distribution Date specified
                  in
                  the Optional Termination Notice, the Securities Administrator requests
                  the
                  amount of the Estimated Swap Termination Payment, Party A shall
                  provide to
                  the Securities Administrator in writing (which may be done in electronic
                  format) the amount of the Estimated Swap Termination Payment no
                  later than
                  2:00 pm New York City time on the following Business Day and (II)
                  if the
                  Securities Administrator provides written notice (which may be
                  done in
                  electronic format) to Party A no later than two Business Days prior
                  to the
                  final Distribution Date specified in the Optional Termination Notice
                  that
                  all requirements of the Optional Termination have been met, then
                  Party A
                  shall, no later than one Business Day prior to the final Distribution
                  Date
                  specified in the Optional Termination Notice, make the calculations
                  contemplated by Section 6(e) of the ISDA Master Agreement (as amended
                  herein) and provide to the Securities Administrator in writing
                  (which may
                  be done in electronic format) the amount payable by either Party
                  B or
                  Party A in respect of the related Early Termination Date in
                  connection with this Additional Termination Event; provided, however,
                  that
                  the amount payable by Party B, if any, in respect of the related
                  Early
                  Termination Date shall be the lesser of (x) the amount calculated
                  to be
                  due from Party B pursuant to Section 6(e) and (y) the Estimated
                  Swap
                  Termination Payment; and (E) notwithstanding anything to the contrary
                  in
                  this Agreement, any amount due from Party B to Party A in respect
                  of this
                  Additional Termination Event will be payable on the final Distribution
                  Date specified in the Optional Termination Notice and any amount
                  due from
                  Party A to Party B in respect of this Additional Termination Event
                  will be
                  payable one Business Day prior to the final Distribution Date specified
                  in
                  the Optional Termination Notice. The Securities Administrator shall
                  be an
                  express third party beneficiary of this Agreement as if a party
                  hereto to
                  the extent of the Securities Administrator’s rights specified herein.
                  

              

      

      

      
        	
                (d)

              	
                Required
                  Ratings Downgrade Event.
                  In
                  the event that no Relevant Entity has credit ratings at least equal
                  to the
                  Required Ratings Threshold, then Party A shall, as soon as reasonably
                  practicable and so long as a Required Ratings Downgrade Event is
                  in
                  effect, at its own expense, using commercially reasonable efforts,
                  procure
                  either (A) a Permitted Transfer or (B) an Eligible
                  Guarantee.

              

      

      

      
        	(e)   	
                Compliance
                  with Regulation AB. 

              

      

      
         

        
          
            
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      (i) Party
        A
        agrees and acknowledges that Ace Securities Corp. (“ACE”) is required under
        Regulation AB under the Securities Act of 1933, as amended, and the Securities
        Exchange Act of 1934, as amended (the “Exchange Act”) (“Regulation AB”), to
        disclose certain financial information regarding Party A or its group of
        affiliated entities, if applicable, depending on the aggregate “significant
        percentage” of this Agreement and any other derivative contracts between Party A
        or its group of affiliated entities, if applicable, and Counterparty, as
        calculated from time to time in accordance with Item 1115 of Regulation
        AB.

      

      (ii) It
        shall
        be a swap disclosure event (“Swap Disclosure Event”) if, on any Business Day
        after the date hereof, ACE requests from Party A the applicable financial
        information described in Item 1115 of Regulation AB (such request to be based
        on
        a reasonable determination by ACE, in good faith, that such information is
        required under Regulation AB) (the “Swap Financial Disclosure”).

      

      (iii) Upon
        the
        occurrence of a Swap Disclosure Event, Party A, at its own expense, shall
        (1)(a)
        either (i) provide to ACE the current Swap Financial Disclosure in an
        EDGAR-compatible format (for example, such information may be provided in
        Microsoft Word® or Microsoft Excel® format but not in .pdf format) or (ii)
        provide written consent to ACE to incorporation by reference of such current
        Swap Financial Disclosure as is filed with the Securities and Exchange
        Commission in the Exchange Act Reports of ACE, (b) if applicable, cause its
        outside accounting firm to provide its consent to filing or incorporation
        by
        reference in the Exchange Act Reports of ACE of such accounting firm’s report
        relating to their audits of such current Swap Financial Disclosure, and (c)
        provide to ACE any updated Swap Financial Disclosure with respect to Party
        A or
        any entity that consolidates Party A within five days of the release of any
        such
        updated Swap Financial Disclosure; (2) secure an Eligible Replacement, which
        entity complies with the requirements of Item 1115 of Regulation AB, including
        providing the information contemplated by Part 5(e)(iii)(1) above, to enter
        a
        Replacement Transaction by way of a Permitted Transfer or (3) obtain an Eligible
        Guarantee of Party A’s obligations under this Agreement from an affiliate of
        Party A that is able to comply with the financial information disclosure
        requirements of Item 1115 of Regulation AB, including providing the information
        contemplated by Part 5(e)(iii)(1) above, such that disclosure provided in
        respect of the affiliate will satisfy any disclosure requirements applicable
        to
        Party A, and cause such affiliate to provide Swap Financial Disclosure. If
        permitted by Regulation AB, any required Swap Financial Disclosure may be
        provided by incorporation by reference from reports filed pursuant to the
        Exchange Act.

      

      (iv) Party
        A
        and the primary obligor under any Credit Support Document agree that, in
        the
        event that Party A provides Swap Financial Disclosure to ACE in accordance
        with
        Part 5(e)(iii)(a) or causes its affiliate to provide Swap Financial Disclosure
        to ACE in accordance with Part 5(e)(iii)(c), Party A and such primary obligor
        will indemnify and hold harmless ACE, its respective directors or officers
        and
        any person controlling ACE, from and against any and all losses, claims,
        damages
        and liabilities caused by any untrue statement or alleged untrue statement
        of a
        material fact contained in such Swap Financial Disclosure or caused by any
        omission or alleged omission to state in such Swap Financial Disclosure a
        material fact, when considered in conjunction with any other information
        regarding Party A or the derivative instrument being written by Party A in
        the
        final prospectus for ACE 2007-HE4, required to be stated therein or necessary
        to
        make the statements therein, in light of the circumstances under which they
        were
        made, not misleading.

      

      (v)
        Third
        Party Beneficiary. ACE shall be an express third party beneficiary of this
        Agreement as if a party hereto to the extent of ACE’s rights explicitly
        specified herein.

      

      

      
        	
                (f)

              	
                Transfers. 

              

      

       

      
        	
              	(i)	
                Section
                  7 is hereby amended to read in its entirety as
                  follows:

              

      

       

      “Except
        with respect to any Permitted Transfer pursuant to Section 6(b)(ii), Part
        5(d),
        and Part 5(e), or the succeeding sentence, neither Party A nor Party B is
        permitted to assign, novate or transfer (whether by way of security or
        otherwise) as a whole or in part any of its rights, obligations or interests
        under the Agreement or any Transaction unless (a) the prior written consent
        of
        the other party is obtained and (b) the Rating Agency Condition has been
        satisfied with respect to S&P. At any time at which no Relevant Entity has
        credit ratings at least equal to the Approved Ratings Threshold, Party A
        may
        make a Permitted Investment.” 

      
         

        
          
            
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                (ii)

              	
                If
                  an Eligible Replacement has made a Firm Offer (which remains an
                  offer that
                  will become legally binding upon acceptance by Party B) to be the
                  transferee pursuant to a Permitted Transfer, Party B shall, at
                  Party A’s
                  written request and at Party A’s expense, take any reasonable steps
                  required to be taken by Party B to effect such transfer.
                  

              

      

       

      
        	
                (g)

              	
                Non-Recourse.
                  Party A acknowledges and agree that, notwithstanding any provision
                  in this
                  Agreement to the contrary, the obligations of Party B hereunder
                  are
                  limited recourse obligations of Party B, payable solely from the
                  Supplemental Interest Trust and the proceeds thereof, in accordance
                  with
                  the priority of payments and other terms of the Pooling and Servicing
                  Agreement and that Party A will not have any recourse to any of
                  the
                  directors, officers, employees, shareholders or affiliates of the
                  Party B
                  with respect to any claims, losses, damages, liabilities, indemnities
                  or
                  other obligations in connection with any transactions contemplated
                  hereby.
                  In the event that the Supplemental Interest Trust and the proceeds
                  thereof, should be insufficient to satisfy all claims outstanding
                  and
                  following the realization of the Supplemental Interest Trust and
                  the
                  proceeds thereof, any claims against or obligations of Party B
                  under the
                  ISDA Master Agreement or any other confirmation thereunder still
                  outstanding shall be extinguished and thereafter not revive. The
                  Supplemental Interest Trust Trustee shall not have liability for
                  any
                  failure or delay in making a payment hereunder to Party A due to
                  any
                  failure or delay in receiving amounts in the account held by the
                  Supplemental Interest Trust created pursuant to the Pooling and
                  Servicing
                  Agreement. This provision will survive the termination of this
                  Agreement.

              

      

      

      
        	
                (h)

              	
                Timing
                  of Payments
                  by Party B upon Early Termination.
                  Notwithstanding anything to the contrary in Section 6(d)(ii), to
                  the
                  extent that all or a portion (in either case, the “Unfunded Amount”) of
                  any amount that is calculated as being due in respect of any Early
                  Termination Date under Section 6(e) from Party B to Party A will
                  be paid
                  by Party B from amounts other than any upfront payment paid to
                  Party B by
                  an Eligible Replacement that has entered a Replacement Transaction
                  with
                  Party B, then such Unfunded Amount shall be due on the next subsequent
                  Distribution Date following the date on which the payment would
                  have been
                  payable as determined in accordance with Section 6(d)(ii), and
                  on any
                  subsequent Distribution Dates until paid in full (or if such Early
                  Termination Date is the final Distribution Date, on such final
                  Distribution Date); provided, however, that if the date on which
                  the
                  payment would have been payable as determined in accordance with
                  Section
                  6(d)(ii) is a Distribution Date, such payment will be payable on
                  such
                  Distribution Date.

              

      

      

      
        	
                (i)

              	
                Rating
                  Agency Notifications. Notwithstanding
                  any other provision of this Agreement, no Early Termination Date
                  shall be
                  effectively designated hereunder by Party B and no transfer of
                  any rights
                  or obligations under this Agreement shall be made by either party
                  unless
                  each Swap Rating Agency has been given prior written notice of
                  such
                  designation or transfer. 

              

      

      

      
        	
                (j)

              	
                No
                  Set-off.
                  Except as expressly provided for in Section 2(c), Section 6 or
                  Part
                  1(f)(i)(D) hereof, and notwithstanding any other provision of this
                  Agreement or any other existing or future agreement, each party
                  irrevocably waives any and all rights it may have to set off, net,
                  recoup
                  or otherwise withhold or suspend or condition payment or performance
                  of
                  any obligation between it and the other party hereunder against
                  any
                  obligation between it and the other party under any other agreements.
                  Section 6(e) shall be amended by deleting the following sentence:
“The
                  amount, if any, payable in respect of an Early Termination Date
                  and
                  determined pursuant to this Section will be subject to any
                  Set-off.”.

              

      

       

      
        	
                (k)

              	
                Amendment.
                  Notwithstanding any provision to the contrary in this Agreement,
                  no
                  amendment of either this Agreement or any Transaction under this
                  Agreement
                  shall be permitted by either party unless each of the Swap Rating
                  Agencies
                  has been provided prior written notice of the same and such amendment
                  satisfies the Rating Agency Condition with respect to
                  S&P.

              

      

      

      
        	
                (l)

              	
                Notice
                  of Certain Events or Circumstances.
                  Each Party agrees, upon learning of the occurrence or existence
                  of any
                  event or condition that constitutes (or that with the giving of
                  notice or
                  passage of time or both would constitute) an Event of Default or
                  Termination Event with respect to such party, promptly to give
                  the other
                  Party and to each Swap Rating Agency notice of such event or condition;
                  provided that failure to provide notice of such event or condition
                  pursuant to this Part 5(l) shall not constitute an Event of Default
                  or a
                  Termination Event.

              

      

      
         

        
          
            
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        	(m)	Proceedings.
                No
                Relevant Entity shall institute against, or cause any other person
                to
                institute against, or join any other person in instituting against
                Party
                B, the Supplemental Interest Trust or the trust formed pursuant to
                the
                Pooling and Servicing Agreement, in any bankruptcy, reorganization,
                arrangement, insolvency or liquidation proceedings or other proceedings
                under any federal or state bankruptcy or similar law for a period
                of one
                year (or, if longer, the applicable preference period) and one day
                following payment in full of the Certificates and any Notes. This
                provision will survive the termination of this
                Agreement.

        	 	 

        	
                (n)

              	
                Supplemental
                  Interest Trust Trustee Liability Limitations.
                  It
                  is expressly understood and agreed by the parties hereto that (a)
                  this
                  Agreement is executed by HSBC Bank USA, National Association (“HSBC”)
                  not in its individual capacity, but solely as Supplemental Interest
                  Trust
                  Trusteee under the Pooling and Servicing Agreement in the exercise
                  of the
                  powers and authority conferred and invested in it thereunder; (b)
                  HSBC has
                  been directed pursuant to the Pooling and Servicing Agreement to
                  enter
                  into this Agreement and to perform its obligations hereunder; (c)
                  each of
                  the representations, undertakings and agreements herein made on
                  behalf of
                  Party B is made and intended not as personal representations of
                  the
                  Supplemental Interest Trust but is made and intended for the purpose
                  of
                  binding only Party B; and (d) under no circumstances shall HSBC
                  in its individual capacity be personally liable for any payments
                  hereunder
                  or for the breach or failure of any obligation, representation,
                  warranty
                  or covenant made or undertaken under this
                  Agreement.

              

      

      

      
        	
                (o)

              	
                Severability.
                  If
                  any term, provision, covenant, or condition of this Agreement,
                  or the
                  application thereof to any party or circumstance, shall be held
                  to be
                  invalid or unenforceable (in whole or in part) in any respect,
                  the
                  remaining terms, provisions, covenants, and conditions hereof shall
                  continue in full force and effect as if this Agreement had been
                  executed
                  with the invalid or unenforceable portion eliminated, so long as
                  this
                  Agreement as so modified continues to express, without material
                  change,
                  the original intentions of the parties as to the subject matter
                  of this
                  Agreement and the deletion of such portion of this Agreement will
                  not
                  substantially impair the respective benefits or expectations of
                  the
                  parties; provided, however, that this severability provision shall
                  not be
                  applicable if any provision of Section 2, 5, 6, or 13 (or any definition
                  or provision in Section 14 to the extent it relates to, or is used
                  in or
                  in connection with any such Section) shall be so held to be invalid
                  or
                  unenforceable. 

              

      

      

      The
        parties shall endeavor to engage in good faith negotiations to replace any
        invalid or unenforceable term, provision, covenant or condition with a valid
        or
        enforceable term, provision, covenant or condition, the economic effect of
        which
        comes as close as possible to that of the invalid or unenforceable term,
        provision, covenant or condition. 

      

      
        	
                (p)

              	
                Agent
                  for Party B. Party
                  A acknowledges that the Depositor has appointed
                  the Supplemental Interest Trust Trustee
                  and the Securities Administrator as its agents under the Pooling
                  and
                  Servicing Agreement to carry out certain functions on behalf of
                  Party B,
                  and that the Supplemental Interest Trust Trustee and Securities
                  Administrator shall be entitled to give notices and to perform
                  and satisfy
                  the obligations of Party B hereunder on behalf of Party
                  B.

              

      

       

      
        	
                (q)

              	
                Escrow
                  Payments.
                  If
                  (whether by reason of the time difference between the cities in
                  which
                  payments are to be made or otherwise) it is not possible for simultaneous
                  payments to be made on any date on which both parties are required
                  to make
                  payments hereunder, either Party may at its option and in its sole
                  discretion notify the other Party that payments on that date are
                  to be
                  made in escrow. In this case deposit of the payment due earlier
                  on that
                  date shall be made by 2:00 pm (local time at the place for the
                  earlier
                  payment) on that date with an escrow agent selected by the notifying
                  party, accompanied by irrevocable payment instructions (i) to release
                  the
                  deposited payment to the intended recipient upon receipt by the
                  escrow
                  agent of the required deposit of any corresponding payment payable
                  by the
                  other party on the same date accompanied by irrevocable payment
                  instructions to the same effect or (ii) if the required deposit
                  of the
                  corresponding payment is not made on that same date, to return
                  the payment
                  deposited to the party that paid it into escrow. The party that
                  elects to
                  have payments made in escrow shall pay all costs of the escrow
                  arrangements.

              

      

      
         

        
          
            
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                (r)

              	
                Consent
                  to Recording.
                  Each party hereto consents to the monitoring or recording, at any
                  time and
                  from time to time, by the other party of any and all communications
                  between trading, marketing, and operations personnel of the parties
                  and
                  their Affiliates, waives any further notice of such monitoring
                  or
                  recording, and agrees to notify such personnel of such monitoring
                  or
                  recording. 

              

      

      

      
        	
                (s)

              	
                Waiver
                  of Jury Trial.
                  Each party waives any right it may have to a trial by jury in respect
                  of
                  any in respect of any suit, action or proceeding relating to this
                  Agreement or any Credit Support Document.

              

      

      

      
        	
                (t)

              	
                Form
                  of ISDA Master Agreement. Party
                  A and Party B hereby agree that the text of the body of the ISDA
                  Master
                  Agreement is intended to be the printed form of the ISDA Master
                  Agreement
                  (Multicurrency -
                  Crossborder) as published and copyrighted in 1992 by the International
                  Swaps and Derivatives Association,
                  Inc.

              

      

      

      
        	
                (u)

              	
                Payment
                  Instructions.
                  Party A hereby agrees that, unless notified in writing by Party
                  B of other
                  payment instructions, any and all amounts payable by Party A to
                  Party B
                  under this Agreement shall be paid to the account specified in
                  Item 4 of
                  this Confirmation, below. 

              

      

      

      
        	
                (v)

              	
                Additional
                  representations.

              

      

      

      
        	 	
                (i)

              	
                Representations
                  of Party A.
                  Party A represents to Party B on the date on which Party A enters
                  into
                  each Transaction that:--

              

      

       

      Party
        A’s
        obligations under this Agreement rank pari passu with all of Party A’s other
        unsecured, unsubordinated obligations except those obligations preferred
        by
        operation of law.

      

      
        	 	
                (ii)

              	
                Capacity.
                  Party A represents to Party B on the date on which Party A enters
                  into
                  this Agreement that it is entering into the Agreement and the Transaction
                  as principal and not as agent of any person. The Supplemental Interest
                  Trust Trustee represents to Party A on the date on which the Supplemental
                  Interest Trust Trustee executes this Agreement that it is executing
                  the
                  Agreement in its capacity as the Supplemental Interest Trust Trustee
                  pursuant to the Pooling and Servicing
                  Agreement.

              

      

       

      
        	
                (w)

              	
                Acknowledgements.

              

      

      

      
        	 	
                (i)

              	
                Substantial
                  financial transactions.
                  Each party hereto is hereby advised and acknowledges as of the
                  date hereof
                  that the other party has engaged in (or refrained from engaging
                  in)
                  substantial financial transactions and has taken (or refrained
                  from
                  taking) other material actions in reliance upon the entry by the
                  parties
                  into the Transaction being entered into on the terms and conditions
                  set
                  forth herein and in the Pooling and Servicing Agreement relating
                  to such
                  Transaction, as applicable. This paragraph shall be deemed repeated
                  on the
                  trade date of each Transaction.

              

      

       

      
        	 	
                (ii)

              	
                Bankruptcy
                  Code.
                  Subject to Part 5(m), without limiting the applicability if any,
                  of any
                  other provision of the U.S. Bankruptcy Code as amended (the “Bankruptcy
                  Code”) (including without limitation Sections 362, 546, 556, and 560
                  thereof and the applicable definitions in Section 101 thereof),
                  the
                  parties acknowledge and agree that all Transactions entered into
                  hereunder
                  will constitute “forward contracts” or “swap agreements” as defined in
                  Section 101 of the Bankruptcy Code or “commodity contracts” as defined in
                  Section 761 of the Bankruptcy Code, that the rights of the parties
                  under
                  Section 6 of this Agreement will constitute contractual rights
                  to
                  liquidate Transactions, that any margin or collateral provided
                  under any
                  margin, collateral, security, pledge, or similar agreement related
                  hereto
                  will constitute a “margin payment” as defined in Section 101 of the
                  Bankruptcy Code, and that the parties are entities entitled to
                  the rights
                  under, and protections afforded by, Sections 362, 546, 556, and
                  560 of the
                  Bankruptcy Code.

              

      

       

      
        	
                (x)

              	
                [Reserved]

              

      

       

      
        	
                (y)

              	
                [Reserved]

              

      

       

      
        	(z)	
                Additional
                  Definitions. 

              

      

      
         

        
          
            
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      As
        used
        in this Agreement, the following terms shall have the meanings set forth
        below,
        unless the context clearly requires otherwise: 

       

      “Approved
        Ratings Threshold”
        means
        each of the S&P Approved Ratings Threshold and the Moody’s First Trigger
        Ratings Threshold.

      

      “Approved
        Replacement” means,
        with respect to a Market Quotation, an entity making such Market Quotation,
        which entity would satisfy conditions (a), (b), (c) and (e) of the definition
        of
        Permitted Transfer (as determined by Party B in its sole discretion, acting
        in a
        commercially reasonable manner) if such entity were a Transferee, as defined
        in
        the definition of Permitted Transfer.

      

      “Derivative
        Provider Trigger Event”
        means
        (i) an Event of Default with respect to which Party A is a Defaulting Party,
        (ii) a Termination Event with respect to which Party A is the sole Affected
        Party or (iii) an Additional Termination Event with respect to which Party
        A is
        the sole Affected Party.

      

      “Eligible
        Guarantee”
        means an
        unconditional and irrevocable guarantee of all present and future obligations
        (for the avoidance of doubt, not limited to payment obligations) of Party
        A or
        an Eligible Replacement to Party B under this Agreement that is provided
        by an
        Eligible Guarantor as principal debtor rather than surety and that is directly
        enforceable by Party B, the form and substance of which guarantee are subject
        to
        the Rating Agency Condition with respect to S&P, and either (A) a law firm
        has given a legal opinion confirming that none of the guarantor’s payments to
        Party B under such guarantee will be subject to Tax
        collected by withholding or
        (B)
        such guarantee provides that, in the event that any of such guarantor’s payments
        to Party B are subject to Tax collected by withholding, such guarantor is
        required to pay such additional amount as is necessary to ensure that the
        net
        amount actually received by Party B (free and clear of any Tax collected
        by
        withholding) will equal the full amount Party B would have received had no
        such
        withholding been required.

      

      “Eligible
        Guarantor” means
        an
        entity that (A) has credit ratings from S&P at least equal to the S&P
        Approved Ratings Threshold and (B) has credit ratings from Moody’s at least
        equal to the Moody’s Second Trigger Ratings Threshold, provided, for the
        avoidance of doubt, that an Eligible Guarantee of an Eligible Guarantor with
        credit ratings below the Moody’s First Trigger Ratings Threshold will not cause
        a Collateral Event (as defined in the Credit Support Annex) not to occur
        or
        continue with respect to Moody’s. 

      

      “Eligible
        Replacement”
        means an
        entity (A) (i) (a) that has credit ratings from S&P at least equal to the
        S&P Approved Ratings Threshold, and (b) has credit ratings from Moody’s at
        least equal to the Moody’s Second Trigger Ratings Threshold, provided, for the
        avoidance of doubt, that an Eligible Replacement with credit ratings below
        the
        Moody’s First Trigger Ratings Threshold will not cause a Collateral Event (as
        defined in the Credit Support Annex) not to occur or continue with respect
        to
        Moody’s, or (ii) the present and future obligations (for the avoidance of doubt,
        not limited to payment obligations) of which entity to Party B under this
        Agreement are guaranteed pursuant to an Eligible Guarantee and (B) that has
        executed an Item 1115 Agreement with the Depositor.

      

      “Estimated
        Swap Termination Payment”
        means,
        with respect to an Early Termination Date, an amount determined by Party
        A in
        good faith and in a commercially reasonable manner as the maximum payment
        that
        could be owed by Party B to Party A in respect of such Early Termination
        Date
        pursuant to Section 6(e) of the ISDA Master Agreement, taking into account
        then
        current market conditions.

      

      “Firm
        Offer”
        means
        (A) with respect to an Eligible Replacement, a quotation from such Eligible
        Replacement (i) in an amount equal to the actual amount payable by or to
        Party B
        in consideration of an agreement between Party B and such Eligible Replacement
        to replace Party A as the counterparty to this Agreement by way of novation
        or,
        if such novation is not possible, an agreement between Party B and such Eligible
        Replacement to enter into a Replacement Transaction (assuming that all
        Transactions hereunder become Terminated Transactions), and (ii) that
        constitutes an offer by such Eligible Replacement to replace Party A as the
        counterparty to this Agreement or enter a Replacement Transaction that will
        become legally binding upon such Eligible Replacement upon acceptance by
        Party
        B, and (B) with respect to an Eligible Guarantor, an offer by such Eligible
        Guarantor to provide an Eligible Guarantee that will become legally binding
        upon
        such Eligible Guarantor upon acceptance by the offeree.

      
         

        
          
            
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      “Moody’s”
        means
        Moody’s Investors Service, Inc., or any successor thereto. 

      

      “Moody’s
        First Trigger Ratings Event” means
        that no Relevant Entity has credit ratings from Moody’s at least equal to the
        Moody’s First Trigger Ratings Threshold. 

      

      “Moody’s
        First Trigger Ratings
        Threshold” means,
        with respect to Party A, the guarantor under an Eligible Guarantee or an
        Eligible Replacement, (i) if such entity has a short-term unsecured and
        unsubordinated debt rating from Moody’s, a long-term unsecured and
        unsubordinated debt rating or counterparty rating from Moody’s of “A2” and a
        short-term unsecured and unsubordinated debt rating from Moody’s of “Prime-1”,
        or (ii) if such entity does not have a short-term unsecured and unsubordinated
        debt rating or counterparty rating from Moody’s, a long-term unsecured and
        unsubordinated debt rating or counterparty rating from Moody’s of
“A1”.

      

      “Moody’s
        Second Trigger Ratings Event” means
        that no
        Relevant Entity has credit ratings from Moody’s at least equal to the Moody’s
        Second Trigger Ratings Threshold. 

      

      “Moody’s
        Second Trigger Ratings Threshold” means,
        with respect to Party A, the guarantor under an Eligible Guarantee or an
        Eligible Replacement, (i) if such entity has a short-term unsecured and
        unsubordinated debt rating from Moody’s, a long-term unsecured and
        unsubordinated debt rating or counterparty rating from Moody’s of “A3” and a
        short-term unsecured and unsubordinated debt rating from Moody’s of “Prime-2”,
        or (ii) if such entity does not have a short-term unsecured and unsubordinated
        debt rating from Moody’s, a long-term unsecured and unsubordinated debt rating
        or counterparty rating from Moody’s of “A3”.

      

      “Permitted
        Transfer” means
        a
        transfer by novation by Party A pursuant to Section 6(b)(ii), Part 5(d),
        Part
        5(e), or the second sentence of Section 7 (as amended herein) to a transferee
        (the “Transferee”)
        of all,
        but not less than all, of Party A’s rights, liabilities, duties and obligations
        under this Agreement, with
        respect to which transfer each of the following conditions is
        satisfied:
        (a) the
        Transferee is an Eligible Replacement that is a recognized dealer in interest
        rate swaps organized under the laws of the United States of America or a
        jurisdiction located in the United States of America (or another jurisdiction
        reasonably acceptable to Party B), (b) as of the date of such transfer the
        Transferee would not be required to withhold or deduct on account of Tax
        from
        any payments under this Agreement or would be required to gross up for such
        Tax
        under Section 2(d)(i)(4), (c) an Event of Default or Termination Event would
        not
        occur as a result of such transfer, (d) Party B has consented in writing
        to the
        transfer, such consent not to be unreasonably withheld, (e) the transfer
        would
        not give rise to a taxable event or any other adverse Tax consequences to
        Party
        B or its interest holders, as determined by Party B in its sole discretion,
        (f)
        pursuant to a written instrument (the “Transfer
        Agreement”),
        the
        Transferee acquires and assumes all rights and obligations of Party A under
        the
        Agreement and the relevant Transaction, (g) Party B shall have determined,
        in
        its sole discretion, acting in a commercially reasonable manner, that such
        Transfer Agreement is effective to transfer to the Transferee all, but not
        less
        than all, of Party A’s rights and obligations under the Agreement and all
        relevant Transactions; (h) Party A will be responsible for any costs or expenses
        incurred in connection with such transfer (including any replacement cost
        of
        entering into a replacement transaction); (i) either (A) Moody’s has been given
        prior written notice of such transfer and the Rating Agency Condition is
        satisfied with respect to S&P or (B) each Swap Rating Agency has been given
        prior written notice of such transfer and such transfer is in connection
        with
        the assignment and assumption of this Agreement without modification of its
        terms, other than party names, dates relevant to the effective date of such
        transfer, tax representations (provided that the representations in Part
        2(a)(i)
        are not modified) and any other representations regarding the status of the
        substitute counterparty of the type included in Part 5(b)(iv), Part 5(v)(i)(2)
        or Part 5(v)(ii), notice information and account details; and (j) such transfer
        otherwise complies with the terms of the Pooling and Servicing
        Agreement.

      
         

        
          
            
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      “Rating
        Agency Condition”
        means,
        with respect to any particular proposed act or omission to act hereunder
        and
        each Swap Rating Agency specified in connection with such proposed act or
        omission, that the party acting or failing to act must consult with each
        of the
        specified Swap Rating Agencies and receive from each such Swap Rating Agency
        a
        prior written confirmation that the proposed action or inaction would not
        cause
        a downgrade or withdrawal of the then-current rating of any Certificates
        or
        Notes.

      

      “Relevant
        Entity” means
        Party A and, to the extent applicable, a guarantor under an Eligible
        Guarantee.

      

      “Replacement
        Transaction”
        means,
        with respect to any Terminated Transaction or group of Terminated Transactions,
        a transaction or group of transactions that (i) would have the effect of
        preserving for Party B the economic equivalent of any payment or delivery
        (whether the underlying obligation was absolute or contingent and assuming
        the
        satisfaction of each applicable condition precedent) by the parties under
        Section 2(a)(i) in respect of such Terminated Transaction or group of Terminated
        Transactions that would, but for the occurrence of the relevant Early
        Termination Date, have been required after that Date, and (ii) has terms
        which
        are substantially the same as this Agreement, including, without limitation,
        rating triggers, Regulation AB compliance, and credit support documentation,
        save for the exclusion of provisions relating to Transactions that are not
        Terminated Transactions, as determined by Party B in its sole discretion,
        acting
        in a commercially reasonable manner.

      

      “Required
        Ratings Downgrade Event”
        means
        that no Relevant Entity has credit ratings at least equal to the Required
        Ratings Threshold. 

      

      “Required
        Ratings Threshold” means
        each of the S&P Required Ratings Threshold and the Moody’s Second Trigger
        Ratings Threshold.

      

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

      

      “S&P
        Approved Ratings Threshold”
        means,
        with respect to Party A, the guarantor under an Eligible Guarantee or an
        Eligible Replacement, a short-term unsecured and unsubordinated debt rating
        from
        S&P of “A-1”, or, if such entity does not have a short-term unsecured and
        unsubordinated debt rating from S&P, a long-term unsecured and
        unsubordinated debt rating or counterparty rating from S&P of
“A+”.

      

      “S&P
        Required Ratings Threshold”
        means,
        with respect to Party A, the guarantor under an Eligible Guarantee or an
        Eligible Replacement, a long-term unsecured and unsubordinated debt rating
        or
        counterparty rating from S&P of “BBB+”. 

      

      “Swap
        Rating Agencies”
        means,
        with respect to any date of determination, each of S&P and Moody’s, to the
        extent that each such rating agency is then providing a rating for any of
        the
        ACE Securities Corp. Home Equity Loan Trust, Series 2007-HE4 Asset Backed
        Pass-Through Certificates (the “Certificates”) or any notes backed by the
        Certificates (the “Notes”).

      

       

      [Remainder
        of this page intentionally left blank.]

      
         

        
          
            
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                4.   

              	
                Account
                  Details and Settlement
                  Information:  

              

      

      
        

          
            	
                    Payments
                      to Party A:

                  	
                    Account
                      with bank:

                  
	 	
                    DB
                      Trust Co Americas

                  
	 	
                    ABA
                      021001033

                  
	 	
                    BKTRUS33

                  
	 	 
	 	
                    Beneficiary:

                  
	 	
                    Deutsche
                      Bank AG New York

                  
	 	
                    a/c:
                      01473969

                  
	 	
                    Global
                      No. N606256N

                  
	 	 
	
                    Payments
                      to Party B:

                  	
                    Wells
                      Fargo Bank, N.A.

                  
	 	
                    ABA
                      # 121000248

                  
	 	
                    Account
                      Name: Corporate Trust Clearing

                  
	 	
                    Account
                      # 3970771416

                  
	 	
                    FFC
                      to: ACE 2007-HE4 Swap Acct #
                      53147603

                  

          

           

        

      

      This
        Agreement may be executed in several counterparts, each of which shall be
        deemed
        an original but all of which together shall constitute one and the same
        instrument.

      

      
        
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      We
        are
        very pleased to have executed this Transaction with you and we look forward
        to
        completing other transactions with you in the near future.

      

      Very
        truly yours,

      

      DEUTCSHE
        BANK AG, NEW YORK BRANCH

      

      By: 
/s/
        Christopher Flanagan      

           
        Christopher Flanagan 

       
        Authorized Signatory

      

      Party
        B,
        acting through its duly authorized signatory, hereby agrees to, accepts and
        confirms the terms of the foregoing as of the date hereof.

      

      HSBC
        Bank USA, National Association, not in its individual capacity, but solely
        as
        Supplemental Interest Trust Trustee for the Supplemental Interest Trust with
        respect to Ace Securities Corp. Home Equity Loan Trust, Series 2007-HE4 Asset
        Backed Pass-Through Certificates

      

      

      By:  /s/ Fernando
        Acebedo

       
        Fernando Acebedo

       
        Vice President

      
         

      

      
        
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        Page 24 of 
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      SCHEDULE
        I

      (all
        such
        dates subject to No Adjustment with respect to Fixed Rate Payer Period End
        Dates
        and adjustment in accordance with the Following Business Day Convention with
        respect to Floating Rate Payer Period End Dates)

      

        
          	
                  From
                    and including

                	
                  To
                    but excluding

                	
                  Notional
                    Amount (USD)

                
	
                  Effective
                    Date

                	
                  11/25/2007

                	
                  917,668,665

                
	
                  11/25/2007

                	
                  12/25/2007

                	
                  897,576,981

                
	
                  12/25/2007

                	
                  1/25/2008

                	
                  876,010,775

                
	
                  1/25/2008

                	
                  2/25/2008

                	
                  853,165,450

                
	
                  2/25/2008

                	
                  3/25/2008

                	
                  829,880,833

                
	
                  3/25/2008

                	
                  4/25/2008

                	
                  807,178,460

                
	
                  4/25/2008

                	
                  5/25/2008

                	
                  785,054,766

                
	
                  5/25/2008

                	
                  6/25/2008

                	
                  763,494,986

                
	
                  6/25/2008

                	
                  7/25/2008

                	
                  742,484,727

                
	
                  7/25/2008

                	
                  8/25/2008

                	
                  722,009,969

                
	
                  8/25/2008

                	
                  9/25/2008

                	
                  702,057,046

                
	
                  9/25/2008

                	
                  10/25/2008

                	
                  682,595,230

                
	
                  10/25/2008

                	
                  11/25/2008

                	
                  663,548,419

                
	
                  11/25/2008

                	
                  12/25/2008

                	
                  644,842,505

                
	
                  12/25/2008

                	
                  1/25/2009

                	
                  625,127,459

                
	
                  1/25/2009

                	
                  2/25/2009

                	
                  595,758,684

                
	
                  2/25/2009

                	
                  3/25/2009

                	
                  553,157,642

                
	
                  3/25/2009

                	
                  4/25/2009

                	
                  513,515,040

                
	
                  4/25/2009

                	
                  5/25/2009

                	
                  477,694,267

                
	
                  5/25/2009

                	
                  6/25/2009

                	
                  451,402,663

                
	
                  6/25/2009

                	
                  7/25/2009

                	
                  436,910,783

                
	
                  7/25/2009

                	
                  8/25/2009

                	
                  422,958,282

                
	
                  8/25/2009

                	
                  9/25/2009

                	
                  409,403,409

                
	
                  9/25/2009

                	
                  10/25/2009

                	
                  396,233,357

                
	
                  10/25/2009

                	
                  11/25/2009

                	
                  383,435,034

                
	
                  11/25/2009

                	
                  12/25/2009

                	
                  370,998,006

                
	
                  12/25/2009

                	
                  1/25/2010

                	
                  358,911,871

                
	
                  1/25/2010

                	
                  2/25/2010

                	
                  347,166,960

                
	
                  2/25/2010

                	
                  3/25/2010

                	
                  335,754,286

                
	
                  3/25/2010

                	
                  4/25/2010

                	
                  324,664,635

                
	
                  4/25/2010

                	
                  5/25/2010

                	
                  313,887,629

                
	
                  5/25/2010

                	
                  6/25/2010

                	
                  313,887,629

                
	
                  6/25/2010

                	
                  7/25/2010

                	
                  313,664,633

                
	
                  7/25/2010

                	
                  8/25/2010

                	
                  304,910,457

                
	
                  8/25/2010

                	
                  9/25/2010

                	
                  296,402,853

                
	
                  9/25/2010

                	
                  10/25/2010

                	
                  288,134,791

                
	
                  10/25/2010

                	
                  11/25/2010

                	
                  280,099,387

                
	
                  11/25/2010

                	
                  12/25/2010

                	
                  272,290,024

                
	
                  12/25/2010

                	
                  1/25/2011

                	
                  264,700,288

                
	
                  1/25/2011

                	
                  2/25/2011

                	
                  257,323,972

                
	
                  2/25/2011

                	
                  3/25/2011

                	
                  250,155,018

                
	
                  3/25/2011

                	
                  4/25/2011

                	
                  243,187,552

                
	
                  4/25/2011

                	
                  5/25/2011

                	
                  236,415,847

                
	
                  5/25/2011

                	
                  6/25/2011

                	
                  229,834,355

                

        

        
          
             

          

          
            
              Global
                No. N606256N

              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

          
            Page 25 of 
              26

          

        

         

        
          	
                  6/25/2011

                	
                  7/25/2011

                	
                  223,437,690

                
	
                  7/25/2011

                	
                  8/25/2011

                	
                  217,220,624

                
	
                  8/25/2011

                	
                  9/25/2011

                	
                  211,178,065

                
	
                  9/25/2011

                	
                  10/25/2011

                	
                  205,305,073

                
	
                  10/25/2011

                	
                  11/25/2011

                	
                  199,596,848

                
	
                  11/25/2011

                	
                  12/25/2011

                	
                  194,048,729

                
	
                  12/25/2011

                	
                  1/25/2012

                	
                  188,656,163

                
	
                  1/25/2012

                	
                  2/25/2012

                	
                  183,414,021

                
	
                  2/25/2012

                	
                  3/25/2012

                	
                  178,311,779

                
	
                  3/25/2012

                	
                  Termination
                    Date

                	
                  173,326,384

                

        

        
          
             

          

          
            
              Global
                No. N606256N

              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

          
            Page 26 of 
              26

          

           

        

      

      Annex
        A

      

      Paragraph
        13 of the Credit Support Annex

       

      
        
          Global
            No. N606256N

          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    ANNEX
      A

    

    ISDA®

    CREDIT
      SUPPORT ANNEX

    to
      the
      Schedule to the

    ISDA
      Master Agreement

    dated
      as
      of April 30, 2007 
      between

    Deutsche
      Bank AG (hereinafter referred to as “Party
      A”
      or
“Pledgor”)

    And

    HSBC
      Bank USA, National Association, not in its individual capacity, but solely
      as
      Supplemental Interest Trust Trustee for the Supplemental Interest Trust with
      respect to ACE Securities Corp. Home Equity Loan Trust, Series 2007-HE4 Asset
      Backed Pass-Through Certificates

    (hereinafter
      referred to as “Party
      B”
      or
“Secured
      Party”).

    

    For
      the
      avoidance of doubt, and notwithstanding anything to the contrary that may be
      contained in the Agreement, this Credit Support Annex shall relate solely to
      the
      Transaction documented in the Confirmation dated April 30, 2007, between Party
      A
      and Party B, Global No. N606256N.

     

    Paragraph
      13. Elections and Variables.

     

    
      	
              (a)

            	
              Security
                Interest for “Obligations”.
                The term “Obligations”
                as
                used in this Annex includes the following additional
                obligations:

            

    

     

    With
      respect to Party A: not applicable.

     

    With
      respect to Party B: not applicable.

     

    
      	
              (b)

            	
              Credit
                Support Obligations.

            

    

     

    
      	 	
              (i)

            	
              Delivery
                Amount, Return Amount and Credit Support
                Amount.

            

    

     

    
      	 	
              (A)

            	
              “Delivery
                Amount”
                has the meaning specified in Paragraph 3(a) as amended (I) by deleting
                the
                words “upon a demand made by the Secured Party on or promptly following
                a
                Valuation Date” and inserting in lieu thereof the words “not later than
                the close of business on each Valuation Date” and (II) by deleting in its
                entirety the sentence beginning “Unless otherwise specified in Paragraph
                13” and ending “(ii) the Value as of that Valuation Date of all Posted
                Credit Support held by the Secured Party.” and inserting in lieu thereof
                the following:

            

    

     

    The
      “Delivery
      Amount”
      applicable to the Pledgor for any Valuation Date will equal the greatest of
      

     

    
      	 	
              (1)
                

            	
              the
                amount by which (a) the S&P Credit Support Amount for such Valuation
                Date exceeds (b) the S&P Value as of such Valuation Date of all Posted
                Credit Support held by the Secured Party,

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

        Global
          No. N606256N

      

    

    
      	 	
              (2)
                

            	
              the
                amount by which (a) the Moody’s First Trigger Credit Support Amount for
                such Valuation Date exceeds (b) the Moody’s First Trigger Value as of such
                Valuation Date of all Posted Credit Support held by the Secured Party,
                and

            

    

     

    
      	 	
              (3)
                

            	
              the
                amount by which (a) the Moody’s Second Trigger Credit Support Amount for
                such Valuation Date exceeds (b) the Moody’s Second Trigger Value as of
                such Valuation Date of all Posted Credit Support held by the Secured
                Party.

            

    

     

    
      	 	
              (B)

            	
              “Return
                Amount”
                has the meaning specified in Paragraph 3(b) as amended by deleting
                in its
                entirety the sentence beginning “Unless otherwise specified in Paragraph
                13” and ending “(ii) the Credit Support Amount.” and inserting in lieu
                thereof the following:

            

    

     

    The
      “Return
      Amount”
      applicable to the Secured Party for any Valuation Date will equal the least
      of

     

    
      	 	
              (1)
                

            	
              the
                amount by which (a) the S&P Value as of such Valuation Date of all
                Posted Credit Support held by the Secured Party exceeds (b) the S&P
                Credit Support Amount for such Valuation Date,

            

    

     

    
      	 	
              (2)
                

            	
              the
                amount by which (a) the Moody’s First Trigger Value as of such Valuation
                Date of all Posted Credit Support held by the Secured Party exceeds
                (b)
                the Moody’s First Trigger Credit Support Amount for such Valuation Date,
                and

            

    

     

    
      	 	
              (3)
                

            	
              the
                amount by which (a) the Moody’s Second Trigger Value as of such Valuation
                Date of all Posted Credit Support held by the Secured Party exceeds
                (b)
                the Moody’s Second Trigger Credit Support Amount for such Valuation
                Date.

            

    

     

    
      	 	
              (C)

            	
              “Credit
                Support Amount”
                shall not apply. For purposes of calculating any Delivery Amount
                or Return
                Amount for any Valuation Date, reference shall be made to the S&P
                Credit Support Amount, the Moody’s First Trigger Credit Support Amount, or
                the Moody’s Second Trigger Credit Support Amount, in each case for such
                Valuation Date, as provided in Paragraphs 13(b)(i)(A) and 13(b)(i)(B),
                above.

            

    

     

    
      	 	
              (ii)

            	
              Eligible
                Collateral.
                

            

    

     

    On
      any
      date, the following items will qualify as “Eligible
      Collateral”
(for
      the avoidance of doubt, all Eligible Collateral to be denominated in
      USD):

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

        Global
          No. N606256N

      

    

    

     

    
      	
               

              Collateral
                

            	
              S&P

              Valuation
                

              Percentage

            	
              Moody’s
                

              First
                Trigger

              Valuation

              Percentage

            	
              Moody’s
                

              Second
                Trigger

              Valuation

              Percentage

            
	 	 	 	 
	
              (A)     
                Cash

            	
              100%

            	
              100%

            	
              100%

            
	 	 	 	 
	
              (B)     
                Fixed-rate
                negotiable debt obligations issued by the U.S. Treasury Department
                having
                a remaining maturity on such date of not more than one
                year

            	
              98.5%

            	
              100%

            	
              100%

            
	 	 	 	 
	
              (C)     
                Fixed-rate
                negotiable debt obligations issued by the U.S. Treasury Department
                having
                a remaining maturity on such date of more than one year but not more
                than
                ten years

            	
              89.9%

            	
              100%

            	
              94%

            
	 	 	 	 
	
              (D)     
                Fixed-rate
                negotiable debt obligations issued by the U.S. Treasury Department
                having
                a remaining maturity on such date of more than ten years

            	
              83.9%

            	
              100%

            	
              87%

            

    

     

    
      	 	
              (iii)

            	
              Other
                Eligible Support. 

            

    

     

    The
      following items will qualify as “Other
      Eligible Support”
      for the
      party specified: 

     

    Not
      applicable.

     

    
      	 	
              (iv)

            	
              Threshold.

            

    

     

    
      	 	
              (A)

            	
              “Independent
                Amount”
                means zero with respect to Party A and Party
                B.

            

    

     

    
      	 	
              (B)

            	
              “Threshold”
                means, with respect to Party A and any Valuation Date, zero if (i)
                a
                Collateral Event has occurred and has been continuing (x) for at
                least 30
                days or (y) since this Annex was executed, or (ii) a Required Ratings
                Downgrade Event has occurred and is continuing; otherwise,
                infinity.

            

    

     

    “Threshold”
      means,
      with respect to Party B and any Valuation Date, infinity.

     

    
      	 	
              (C)

            	
              “Minimum
                Transfer Amount” means
                USD 100,000 with respect to Party A and Party B; provided, however,
                that
                if the aggregate Certificate Principal Balance of the Certificates
                and the
                aggregate principal balance of any Notes rated by S&P is at the time
                of any transfer less than USD 50,000,000, the “Minimum
                Transfer Amount”
                shall be USD 50,000.

            

    

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

        Global
          No. N606256N

      

    

    
      	 	
              (D)

            	
              Rounding:
                The Delivery Amount will be rounded up to the nearest integral multiple
                of
                USD 10,000. The Return Amount will be rounded down to the nearest
                integral
                multiple of USD 10,000.

            

    

     

    
      	
              (c)

            	
              Valuation
                and Timing.

            

    

     

    
      	 	
              (i)

            	
              “Valuation
                Agent”
                means Party A; provided, however, that if an Event of Default shall
                have
                occurred with respect to which Party A is the Defaulting Party, Party
                B
                shall have the right to designate as Valuation Agent an independent
                party,
                reasonably acceptable to Party A, the cost for which shall be borne
                by
                Party A. All calculations by the Valuation Agent must be made in
                accordance with standard market practice, including, in the event
                of a
                dispute as to the Value of any Eligible Credit Support or Posted
                Credit
                Support, by making reference to quotations received by the Valuation
                Agent
                from one or more Pricing Sources.

            

    

     

    
      	 	
              (ii)

            	
              “Valuation
                Date” means
                the first Local Business Day in each week on which any of the S&P
                Credit Support Amount, the Moody’s First Trigger Credit Support Amount or
                the Moody’s Second Trigger Credit Support Amount is greater than
                zero.

            

    

     

    
      	 	
              (iii)

            	
              “Valuation
                Time” means
                the close of business in the city of the Valuation Agent on the Local
                Business Day immediately preceding the Valuation Date or date of
                calculation, as applicable; provided
                that the calculations of Value and Exposure will be made as of
                approximately the same time on the same date.

            

    

     

    
      	 	
              (iv)

            	
              “Notification
                Time” means
                11:00 a.m., New York time, on a Local Business Day.
                

            

    

     

    
      	 	
              (v)

            	
              External
                Verification.
                Notwithstanding anything to the contrary in the definitions of Valuation
                Agent or Valuation Date, at any time at which Party A (or, to the
                extent
                applicable, its Credit Support Provider) does not have a long-term
                unsubordinated and unsecured debt rating of at least “BBB+” from S&P,
                the Valuation Agent shall (A) calculate the Secured Party’s Exposure and
                the S&P Value of Posted Credit Support on each Valuation Date based on
                internal marks and (B) verify such calculations with external marks
                monthly by obtaining on the last Local Business Day of each calendar
                month
                two external marks for each Transaction to which this Annex relates
                and
                for all Posted Credit Support; such verification of the Secured Party’s
                Exposure shall be based on the higher of the two external marks.
                Each
                external mark in respect of a Transaction shall be obtained from
                an
                independent Reference Market-maker that would be eligible and willing
                to
                enter into such Transaction in the absence of the current derivative
                provider, provided that an external mark may not be obtained from
                the same
                Reference Market-maker more than four times in any 12-month period.
                The
                Valuation Agent shall obtain these external marks directly or through
                an
                independent third party, in either case at no cost to Party B. The
                Valuation Agent shall calculate on each Valuation Date (for purposes
                of
                this paragraph, the last Local Business Day in each calendar month
                referred to above shall be considered a Valuation Date) the Secured
                Party’s Exposure based on the greater of the Valuation Agent’s internal
                marks and the external marks received. If the S&P Value on any such
                Valuation Date of all Posted Credit Support then held by the Secured
                Party
                is less than the S&P Credit Support Amount on such Valuation Date (in
                each case as determined pursuant to this paragraph), Party A shall,
                within
                three Local Business Days of such Valuation Date, Transfer to the
                Secured
                Party Eligible Credit Support having an S&P Value as of the date of
                Transfer at least equal to such deficiency.

            

    

     

    
      	 	
              (vi)

            	
              Notice
                to S&P.
                At
                any time at which Party A (or, to the extent applicable, its Credit
                Support Provider) does not have a long-term unsubordinated and unsecured
                debt rating of at least “BBB+” from S&P, the Valuation Agent shall
                provide to S&P not later than the Notification Time on the Local
                Business Day following each Valuation Date its calculations of the
                Secured
                Party’s Exposure and the S&P Value of any Eligible Credit Support or
                Posted Credit Support for that Valuation Date. The Valuation Agent
                shall
                also provide to S&P any external marks received pursuant to the
                preceding paragraph.

            

    

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

        Global
          No. N606256N

      

    

    
      	
              (d)

            	
              Conditions
                Precedent and Secured Party’s Rights and
                Remedies.
                The following Termination Events will be a “Specified
                Condition”
                for the party specified (that party being the Affected Party if the
                Termination Event occurs with respect to that party): With respect
                to
                Party A: any Additional Termination Event with respect to which Party
                A is
                the sole Affected Party. With respect to Party B:
                None.

            

    

     

    
      	
              (e)

            	
              Substitution.

            

    

     

    
      	 	
              (i)

            	
              “Substitution
                Date”
                has the meaning specified in Paragraph
                4(d)(ii).

            

    

     

    
      	 	
              (ii)

            	
              Consent.
                If
                specified here as applicable, then the Pledgor must obtain the Secured
                Party’s consent for any substitution pursuant to Paragraph 4(d):
                Inapplicable.

            

    

     

    
      	
              (f)

            	
              Dispute
                Resolution.

            

    

     

    
      	 	
              (i)

            	
              “Resolution
                Time”
                means 1:00 p.m. New York time on the Local Business Day following
                the date
                on which the notice of the dispute is given under Paragraph
                5.

            

    

     

    
      	 	
              (ii)

            	
              Value.
                Notwithstanding anything to the contrary in Paragraph 12, for the
                purpose
                of Paragraphs 5(i)(C) and 5(ii), the S&P Value, Moody’s First Trigger
                Value, and Moody’s Second Trigger Value, on any date, of Eligible
                Collateral other than Cash will be calculated as follows:
                

            

    

     

    For
      Eligible Collateral in the form of securities listed in Paragraph 13(b)(ii):
      the
      sum of (A) the product of (1)(x) the bid price at the Valuation Time for such
      securities on the principal national securities exchange on which such
      securities are listed, or (y) if such securities are not listed on a national
      securities exchange, the bid price for such securities quoted at the Valuation
      Time by any principal market maker for such securities selected by the Valuation
      Agent, or (z) if no such bid price is listed or quoted for such date, the bid
      price listed or quoted (as the case may be) at the Valuation Time for the day
      next preceding such date on which such prices were available and (2) the
      applicable Valuation Percentage for such Eligible Collateral, and (B) the
      accrued interest on such securities (except to the extent Transferred to the
      Pledgor pursuant to Paragraph 6(d)(ii) or included in the applicable price
      referred to in the immediately preceding clause (A)) as of such
      date.

     

    
      	 	
              (iii)

            	
              Alternative.
                The provisions of Paragraph 5 will
                apply.

            

    

     

    
      	
              (g)

            	
              Holding
                and Using Posted
                Collateral.

            

    

     

    
      	 	
              (i)

            	
              Eligibility
                to Hold Posted Collateral; Custodians.  Party
                B (or any Custodian) will be entitled to hold Posted Collateral pursuant
                to Paragraph 6(b). 

            

    

     

    Party
      B
      may appoint as Custodian (A) the entity then serving as Securities Administrator
      or (B) any entity other than the entity then serving as Securities Administrator
      if such other entity (or, to the extent applicable, its parent company or credit
      support provider) shall then have a short-term unsecured and unsubordinated
      debt
      rating from S&P of at least “A-1.”

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

        Global
          No. N606256N

      

    

    Initially,
      the Custodian
      for
      Party B is: Securities Administrator

     

    
      	 	
              (ii)

            	
              Use
                of Posted Collateral. The
                provisions of Paragraph 6(c)(i) will not apply to Party B, but the
                provisions of Paragraph 6(c)(ii) will apply to Party B or its Custodian.
                Posted
                Collateral in the form of Cash shall be invested in such overnight
                (or
                redeemable within two Local Business Days of demand) Permitted Investments
                rated at least (x) AAAm or AAAm-G by S&P and (y) Prime-1 by Moody’s or
                Aaa by Moody’s, as directed by Party A (unless (x) an Event of Default or
                an Additional Termination Event has occurred with respect to which
                Party A
                is the defaulting or sole Affected Party or (y) an Early Termination
                Date
                has been designated, in which case such Posted Collateral shall be
                held
                uninvested). Gains and losses incurred in respect of any investment
                of
                Posted Collateral in the form of Cash in Permitted Investments as
                directed
                by Party A shall be for the account of Party A. If no investment
                direction
                is received, the Posted Collateral in the form of Cash shall be held
                uninvested. 

            

    

     

    
      	
              (h)

            	
              Distributions
                and Interest Amount.

            

    

     

    
      	 	
              (i)

            	
              Interest
                Rate.
                The “Interest
                Rate”
                will be the actual interest rate earned on Posted Collateral in the
                form
                of Cash that is held by Party B or its
                Custodian.

            

    

     

    
      	 	
              (ii)

            	
              Transfer
                of Interest Amount.
                The Transfer of the Interest Amount will be made on the second Local
                Business Day following the end of each calendar month and on any
                other
                Local Business Day on which Posted Collateral in the form of Cash
                is
                Transferred to the Pledgor pursuant to Paragraph 3(b); provided,
                however,
                that the obligation of Party B to Transfer any Interest Amount to
                Party A
                shall be limited to the extent that Party B has earned and received
                such
                funds and such funds are available to Party B.

            

    

     

    
      	 	
              (iii)

            	
              Alternative
                to Interest Amount.
                The provisions of Paragraph 6(d)(ii) will
                apply.

            

    

     

    
      	
              (i)

            	
              Additional
                Representation(s).
                There are no additional representations by either
                party.

            

    

     

    
      	
              (j)

            	
              Other
                Eligible Support and Other Posted Support.

            

    

     

    
      	 	
              (i)

            	
              “Value”
                with respect to Other Eligible Support and Other Posted Support means:
                not
                applicable. 

            

    

     

    
      	 	
              (ii)

            	
              “Transfer”
                with respect to Other Eligible Support and Other Posted Support means:
                not
                applicable.

            

    

     

    
      	
              (k)

            	
              Demands
                and Notices.All
                demands, specifications and notices under this Annex will be made
                pursuant
                to the Notices Section of this Agreement, except that any demand,
                specification or notice shall be given to or made at the following
                addresses, or at such other address as the relevant party may from
                time to
                time designate by giving notice (in accordance with the terms of
                this
                paragraph) to the other party:

            

    

     

    If
      to
      Party A, at the address specified pursuant to the Notices Section of this
      Agreement.

     

    If
      to
      Party B, at the address specified pursuant to the Notices Section of this
      Agreement.

     

    If
      to
      Party B’s Custodian: 

     

    
      	 	
              Address:

            	
              Wells
                Fargo Bank, N.A.

            

    

    9062
      Old
      Annapolis Road

    Columbia,
      MD 21045 

    
      
        
        

      

      
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              Attention:

            	
              Client
                Manager Ace 2007-HE4

            

    

    
      	 	
              Tel:

            	
              410-884-2000

            

    

    
      	 	
              Fax:

            	
              410-715-2380
                - WELLS PLEASE CONFIRM]

            

    

    

    
      	
              (l)

            	
              Address
                for Transfers.
                Each Transfer hereunder shall be made to the address specified below
                or to
                an address specified in writing from time to time by the party to
                which
                such Transfer will be made.

            

    

     

    Party
      A
      account details for holding collateral: to be provided by Party A in
      writing.

     

    Party
      B’s
      Custodian account details for holding collateral:

     

    Wells
      Fargo Bank, N.A.

    ABA
      #
      121000248

    Account
      Name: Corporate Trust Clearing

    Account
      #
      3970771416

    ACE
      2007-HE4 Swap Collateral Account #53147604

    

    
      	
              (m)

            	
              Other
                Provisions.

            

    

     

    
      	 	
              (i)

            	
              Collateral
                Account.
                Party B shall open and maintain a segregated account, which shall
                be an
                Eligible Account, and hold, record and identify all Posted Collateral
                in
                such segregated account, in accordance with the Pooling and Servicing
                Agreement. 

            

    

     

    
      	 	
              (ii)

            	
              Agreement
                as to Single Secured Party and Single Pledgor.
                Party A and Party B hereby agree that, notwithstanding anything to
                the
                contrary in this Annex, (a) the term “Secured Party” as used in this Annex
                means only Party B, (b) the term “Pledgor” as used in this Annex means
                only Party A, (c) only Party A makes the pledge and grant in Paragraph
                2,
                the acknowledgement in the final sentence of Paragraph 8(a) and the
                representations in Paragraph 9.

            

    

     

    
      	 	
              (iii)

            	
              Calculation
                of Value.
                Paragraph 4(c) is hereby amended by deleting the word “Value” and
                inserting in lieu thereof “S&P Value, Moody’s First Trigger Value,
                Moody’s Second Trigger Value”. Paragraph 4(d)(ii) is hereby amended by (A)
                deleting the words “a Value” and inserting in lieu thereof “an S&P
                Value, Moody’s First Trigger Value, and Moody’s Second Trigger Value” and
                (B) deleting the words “the Value” and inserting in lieu thereof “S&P
                Value, Moody’s First Trigger Value, and Moody’s Second Trigger Value”.
                Paragraph 5 (flush language) is hereby amended by deleting the word
                “Value” and inserting in lieu thereof “S&P Value, Moody’s First
                Trigger Value, or Moody’s Second Trigger Value”. Paragraph 5(i) (flush
                language) is hereby amended by deleting the word “Value” and inserting in
                lieu thereof “S&P Value, Moody’s First Trigger Value, and Moody’s
                Second Trigger Value”. Paragraph 5(i)(C) is hereby amended by deleting the
                word “the Value, if” and inserting in lieu thereof “any one or more of the
                S&P Value, Moody’s First Trigger Value, or Moody’s Second Trigger
                Value, as may be”. Paragraph 5(ii) is hereby amended by (1) deleting the
                first instance of the words “the Value” and inserting in lieu thereof “any
                one or more of the S&P Value, Moody’s First Trigger Value, or Moody’s
                Second Trigger Value” and (2) deleting the second instance of the words
                “the Value” and inserting in lieu thereof “such disputed S&P Value,
                Moody’s First Trigger Value, or Moody’s Second Trigger Value”. Each of
                Paragraph 8(b)(iv)(B) and Paragraph 11(a) is hereby amended by deleting
                the word “Value” and inserting in lieu thereof “least of the S&P
                Value, Moody’s First Trigger Value, and Moody’s Second Trigger Value”.
                

            

    

     

    
      	 	
              (iv)

            	
              Form
                of Annex. Party
                A and Party B hereby agree that the text of Paragraphs 1 through
                12,
                inclusive, of this Annex is intended to be the printed form of ISDA
                Credit
                Support Annex (Bilateral Form - ISDA Agreements Subject to New York
                Law
                Only version) as published and copyrighted in 1994 by the International
                Swaps and Derivatives Association,
                Inc.

            

    

     

    
      
        
        

      

      
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              (v)

            	
              Events
                of Default.
                Paragraph 7 will not apply to cause any Event of Default to exist
                with
                respect to Party B except that Paragraph 7(i) will apply to Party
                B solely
                in respect of Party B’s obligations under Paragraph 3(b) of the Credit
                Support Annex. Notwithstanding anything to the contrary in Paragraph
                7,
                any failure by Party A to comply with or perform any obligation to
                be
                complied with or performed by Party A under the Credit Support Annex
                shall
                only be an Event of Default if (A) Required
                Ratings Downgrade Event has occurred and been continuing for 30 or
                more
                Local Business Days, and (B) such failure is not remedied on or before
                the
                third Local Business Day after notice of such failure is given to
                Party
                A.

            

    

     

    
      	 	
              (vi)

            	
              Expenses.
                Notwithstanding anything to the contrary in Paragraph 10, the Pledgor
                will
                be responsible for, and will reimburse the Secured Party for, all
                transfer
                and other taxes and other costs involved in any Transfer of Eligible
                Collateral.

            

    

     

    
      	 	
              (vii)

            	
              Withholding.
                Paragraph 6(d)(ii) is hereby amended by inserting immediately after
“the
                Interest Amount” in the fourth line thereof the words “less any applicable
                withholding taxes.”

            

    

     

    
      	 	
              (viii)

            	
              Additional
                Definitions.
                As used in this Annex:

            

    

     

    “Collateral
      Event” means
      that no Relevant Entity has credit ratings at least equal to the Approved
      Ratings Threshold.

     

    “Exposure”
      has the meaning specified in Paragraph 12, except that after the word
“Agreement” the words “(assuming, for this purpose only, that Part 1(f) of the
      Schedule is deleted)” shall be inserted. 

     

    “Local
      Business Day”
means
      for purposes of this Annex: any day on which (A) commercial banks are open
      for
      business (including dealings in foreign exchange and foreign currency deposits)
      in New York and the location of Party A, Party B and any Custodian, and (B)
      in
      relation to a Transfer of Eligible Collateral, any day on which the clearance
      system agreed between the parties for the delivery of Eligible Collateral is
      open for acceptance and execution of settlement instructions (or in the case
      of
      a Transfer of Cash or other Eligible Collateral for which delivery is
      contemplated by other means a day on which commercial banks are open for
      business (including dealings in foreign exchange and foreign deposits) in New
      York and the location of Party A, Party B and any Custodian. 

     

    “Moody’s
      First Trigger Credit Support Amount” means,
      for any Valuation Date, the excess, if any, of

     

    
      	 	
              (I)

            	
              (A)

            	
              for
                any Valuation Date on which (I) a Moody’s First Trigger Ratings Event has
                occurred and has been continuing (x) for at least 30 Local Business
                Days
                or (y) since this Annex was executed and (II) it is not the case
                that a
                Moody’s Second Trigger Ratings Event has occurred and been continuing for
                at least 30 Local Business Days, an amount equal to the greater of
                (a)
                zero and (b) the sum of (i) the Secured Party’s Exposure for such
                Valuation Date and (ii) the sum, for each Transaction to which this
                Annex
                relates, of the product of (i) the applicable Moody’s First Trigger Factor
                set forth in Table 1, (ii) the Scale Factor, if any, for such Transaction,
                or, if no Scale Factor is applicable for such Transaction, one, (iii)
                the
                Notional Amount for such Transaction for the Calculation Period for
                such
                Transaction (each as defined in the related Confirmation) which includes
                such Valuation Date; or 

            

    

     

    
      
        
        

      

      
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              (B)

            	
              for
                any other Valuation Date, zero,
                over

            

    

     

    
      	 	
              (II)

            	
              the
                Threshold for Party A such Valuation
                Date.

            

    

     

    “Moody’s
      First Trigger Value”
      means,
      on any date and with respect to any Eligible Collateral other than Cash, the
      bid
      price obtained by the Valuation Agent multiplied by the Moody’s First Trigger
      Valuation Percentage for such Eligible Collateral set forth in Paragraph
      13(b)(ii).

     

    “Moody’s
      Second Trigger Event” means
      that no Relevant Entity has credit ratings from Moody’s at least equal to the
      Moody’s Second Trigger Ratings Threshold.

     

    “Moody’s
      Second Trigger Credit Support Amount”
      means,
      for any Valuation Date, the excess, if any, of

     

    
      	 	
              (I)

            	
              (A)

            	
              for
                any Valuation Date on which it is the case that a Moody’s Second Trigger
                Ratings Event has occurred and been continuing for at least 30 Local
                Business Days, an amount equal to the greatest of (a) zero, (b) the
                aggregate amount of the next payment due to be paid by Party A under
                each
                Transaction to which this Annex relates, and (c) the sum of (x) the
                Secured Party’s Exposure for such Valuation Date and (y) the sum, for each
                Transaction to which this Annex relates, of

            

    

     

    (1)
      if
      such Transaction is not a Transaction-Specific Hedge, the product of (i) the
      applicable Moody’s Second Trigger Factor set forth in Table 2, (ii) the Scale
      Factor, if any, for such Transaction, or, if no Scale Factor is applicable
      for
      such Transaction, one, and (iii) the Notional Amount for such Transaction for
      the Calculation Period for such Transaction (each as defined in the related
      Confirmation) which includes such Valuation Date;
      or

     

    (2)
      if
      such Transaction is a Transaction-Specific Hedge, the product of (i) the
      applicable Moody’s Second Trigger Factor set forth in Table 3, (ii) the Scale
      Factor, if any, for such Transaction, or, if no Scale Factor is applicable
      for
      such Transaction, one, and (iii) the Notional Amount for such Transaction for
      the Calculation Period which includes such Valuation Date; or 

     

    
      	 	
              (B)

            	
              for
                any other Valuation Date, zero,
                over

            

    

     

    
      	 	
              (II)

            	
              the
                Threshold for Party A for such Valuation
                Date.

            

    

     

    “Moody’s
      Second Trigger Value”
      means,
      on any date and with respect to any Eligible Collateral other than Cash, the
      bid
      price obtained by the Valuation Agent multiplied by the Moody’s Second Trigger
      Valuation Percentage for such Eligible Collateral set forth in Paragraph
      13(b)(ii).

     

    “Next
      Payment”
      means,
      in respect of each Next Payment Date, the greater of (i) the amount of any
      payments due to be made by Party A under Section 2(a) on such Next Payment
      Date
      less any payments due to be made by Party B under Section 2(a) on such Next
      Payment Date (in each case, after giving effect to any applicable netting under
      Section 2(c)) and (ii) zero.

     

    
      
        
        

      

      
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        Global
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    “Next
      Payment Date”
      means
      each date on which the next scheduled payment under any Transaction is due
      to be
      paid.

     

    “Pricing
      Sources”
      means
      the sources of financial information commonly known as Bloomberg, Bridge
      Information Services, Data Resources Inc., Interactive Data Services,
      International Securities Market Association, Merrill Lynch Securities Pricing
      Service, Muller Data Corporation, Reuters, Wood Gundy, Trepp Pricing, JJ Kenny,
      S&P and Telerate.

     

    “Remaining
      Weighted Average Maturity” means,
      with respect to a Transaction, the expected weighted average maturity for such
      Transaction as determined by the Valuation Agent.

    

    “S&P
      Approved Ratings Downgrade Event”
      means that no Relevant Entity has credit ratings at least equal to the S&P
      Approved Ratings Threshold.

     

    “S&P
      Credit Support Amount”
      means,
      for any Valuation Date, the excess, if any, of

     

    
      	 	
              (I)

            	
              (A)
                

            	
              for
                any Valuation Date on which (i) an S&P Required Ratings Downgrade
                Event, has occurred and been continuing for at least 30 days, or
                (ii) a
                S&P Required Ratings Downgrade Event has occurred and is continuing,
                an amount equal to the sum of (1) 100.0% of the Secured Party’s Exposure
                for such Valuation Date and (2) the sum, for each Transaction to
                which
                this Annex relates, of the product of (i) the Volatility Buffer for
                such
                Transaction, (ii) the Scale Factor, if any, for such Transaction,
                or, if
                no Scale Factor is applicable for such Transaction, one, and (iii)
                the
                Notional Amount of such Transaction for the Calculation Period of
                such
                Transaction (each as defined in the related Confirmation) which includes
                such Valuation Date, or 

            

    

     

    
      	 	
              (B)

            	
              for
                any other Valuation Date, zero,
                over

            

    

     

    
      	 	
              (II)

            	
              the
                Threshold for Party A for such Valuation
                Date.

            

    

     

    “S&P
      Required Ratings Downgrade Event”
      means
      that on any date, no Relevant Entity has credit ratings at least equal to the
      S&P Required Ratings Threshold.

     

    “S&P
      Value”
      means,
      on any date and with respect to any Eligible Collateral other than Cash, the
      product of (A) the bid price obtained by the Valuation Agent for such Eligible
      Collateral and (B) the S&P Valuation Percentage for such Eligible Collateral
      set forth in paragraph 13(b)(ii).

     

    “Transaction
      Exposure”
      means,
      for any Transaction, Exposure determined as if such Transaction were the only
      Transaction between the Secured Party and the Pledgor.

     

    “Transaction-Specific
      Hedge” means
      any
      Transaction that is (i) an interest rate swap in respect of which (x) the
      notional amount of the interest rate swap is “balance guaranteed” or (y) the
      notional amount of the interest rate swap for any Calculation Period (as defined
      in the related Confirmation) otherwise is not a specific dollar amount that
      is
      fixed at the inception of the Transaction, (ii) an interest rate cap, (iii)
      an
      interest rate floor or (iv) an interest rate swaption.

     

    “Valuation
      Percentage”
      shall
      mean, for purposes of determining the S&P Value, Moody’s First Trigger
      Value, or Moody’s Second Trigger Value with respect to any Eligible Collateral
      or Posted Collateral, the applicable S&P Valuation Percentage, Moody’s First
      Trigger Valuation Percentage, or Moody’s Second Trigger Valuation Percentage for
      such Eligible Collateral or Posted Collateral, respectively, in each case as
      set
      forth in Paragraph 13(b)(ii).

     

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

        Global
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    “Value”
      shall
      mean, in respect of any date, the related S&P Value, the related Moody’s
      First Trigger Value, and the related Moody’s Second Trigger Value.

     

    “Volatility
      Buffer”
      means,
      for any Transaction, the related percentage set forth in the following table.
      

     

    
      	
              The
                higher of the S&P credit rating of (i) Party A and (ii) the Credit
                Support Provider of Party A, if applicable

            	
              Remaining
                Weighted Average Maturity of such Transaction 

              up
                to 3 years

            	
              Remaining
                Weighted Average Maturity of such Transaction

              up
                to 5 years

            	
              Remaining
                Weighted Average Maturity of such Transaction

              up
                to 10 years

            	
              Remaining
                Weighted Average Maturity of such Transaction

              up
                to 30 years

            
	
              “A-2”
                or higher 

            	
              2.75%

            	
              3.25%

            	
              4.00%

            	
              4.75%

            
	
              “A-3”

            	
              3.25%

            	
              4.00%

            	
              5.00%

            	
              6.25%

            
	
              “BB+”
                or
                lower

            	
              3.50%

            	
              4.50%

            	
              6.75%

            	
              7.50%

            

    

    

     

    

     

    

     

    [Remainder
      of this page intentionally left blank]

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

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    Table
      1

     

    Moody’s
      First Trigger Factor

     

    
      	
              Remaining

              Weighted
                Average Life 

              of
                Hedge in Years

            	
              Weekly

              Collateral

              Posting

            
	 	 
	
              1
                or less

            	
              0.25%

            
	
              More
                than 1 but not more than 2

            	
              0.50%

            
	
              More
                than 2 but not more than 3

            	
              0.70%

            
	
              More
                than 3 but not more than 4

            	
              1.00%

            
	
              More
                than 4 but not more than 5

            	
              1.20%

            
	
              More
                than 5 but not more than 6

            	
              1.40%

            
	
              More
                than 6 but not more than 7

            	
              1.60%

            
	
              More
                than 7 but not more than 8

            	
              1.80%

            
	
              More
                than 8 but not more than 9

            	
              2.00%

            
	
              More
                than 9 but not more than 10

            	
              2.20%

            
	
              More
                than 10 but not more than 11

            	
              2.30%

            
	
              More
                than 11 but not more than 12

            	
              2.50%

            
	
              More
                than 12 but not more than 13

            	
              2.70%

            
	
              More
                than 13 but not more than 14

            	
              2.80%

            
	
              More
                than 14 but not more than 15

            	
              3.00%

            
	
              More
                than 15 but not more than 16

            	
              3.20%

            
	
              More
                than 16 but not more than 17

            	
              3.30%

            
	
              More
                than 17 but not more than 18

            	
              3.50%

            
	
              More
                than 18 but not more than 19

            	
              3.60%

            
	
              More
                than 19 but not more than 20

            	
              3.70%

            
	
              More
                than 20 but not more than 21

            	
              3.90%

            
	
              More
                than 21 but not more than 22

            	
              4.00%

            
	
              More
                than 22 but not more than 23

            	
              4.00%

            
	
              More
                than 23 but not more than 24

            	
              4.00%

            
	
              More
                than 24 but not more than 25

            	
              4.00%

            
	
              More
                than 25 but not more than 26

            	
              4.00%

            
	
              More
                than 26 but not more than 27

            	
              4.00%

            
	
              More
                than 27 but not more than 28

            	
              4.00%

            
	
              More
                than 28 but not more than 29

            	
              4.00%

            
	
              More
                than 29

            	
              4.00%

            

    

    

     

    
      
        
        

      

      
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        Global
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    Table
      2

     

    Moody’s
      Second Trigger Factor for Interest Rate Swaps with Fixed Notional
      Amounts

     

    
      	
              Remaining

              Weighted
                Average Life 

              of
                Hedge in Years

            	
              Weekly

              Collateral
                

              Posting

            
	 	 
	
              1
                or less

            	
              0.60%

            
	
              More
                than 1 but not more than 2

            	
              1.20%

            
	
              More
                than 2 but not more than 3

            	
              1.70%

            
	
              More
                than 3 but not more than 4

            	
              2.30%

            
	
              More
                than 4 but not more than 5

            	
              2.80%

            
	
              More
                than 5 but not more than 6

            	
              3.30%

            
	
              More
                than 6 but not more than 7

            	
              3.80%

            
	
              More
                than 7 but not more than 8

            	
              4.30%

            
	
              More
                than 8 but not more than 9

            	
              4.80%

            
	
              More
                than 9 but not more than 10

            	
              5.30%

            
	
              More
                than 10 but not more than 11

            	
              5.60%

            
	
              More
                than 11 but not more than 12

            	
              6.00%

            
	
              More
                than 12 but not more than 13

            	
              6.40%

            
	
              More
                than 13 but not more than 14

            	
              6.80%

            
	
              More
                than 14 but not more than 15

            	
              7.20%

            
	
              More
                than 15 but not more than 16

            	
              7.60%

            
	
              More
                than 16 but not more than 17

            	
              7.90%

            
	
              More
                than 17 but not more than 18

            	
              8.30%

            
	
              More
                than 18 but not more than 19

            	
              8.60%

            
	
              More
                than 19 but not more than 20

            	
              9.00%

            
	
              More
                than 20 but not more than 21

            	
              9.00%

            
	
              More
                than 21 but not more than 22

            	
              9.00%

            
	
              More
                than 22 but not more than 23

            	
              9.00%

            
	
              More
                than 23 but not more than 24

            	
              9.00%

            
	
              More
                than 24 but not more than 25

            	
              9.00%

            
	
              More
                than 25 but not more than 26

            	
              9.00%

            
	
              More
                than 26 but not more than 27

            	
              9.00%

            
	
              More
                than 27 but not more than 28

            	
              9.00%

            
	
              More
                than 28 but not more than 29

            	
              9.00%

            
	
              More
                than 29

            	
              9.00%

            

    

    

     

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

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    Table
      3

     

    Moody’s
      Second Trigger Factor for Transaction-Specific Hedges

     

    
      	
              Remaining

              Weighted
                Average Life 

              of
                Hedge in Years

            	
              Weekly

              Collateral

              Posting

            
	 	 
	
              1
                or less

            	
              0.75%

            
	
              More
                than 1 but not more than 2

            	
              1.50%

            
	
              More
                than 2 but not more than 3

            	
              2.20%

            
	
              More
                than 3 but not more than 4

            	
              2.90%

            
	
              More
                than 4 but not more than 5

            	
              3.60%

            
	
              More
                than 5 but not more than 6

            	
              4.20%

            
	
              More
                than 6 but not more than 7

            	
              4.80%

            
	
              More
                than 7 but not more than 8

            	
              5.40%

            
	
              More
                than 8 but not more than 9

            	
              6.00%

            
	
              More
                than 9 but not more than 10

            	
              6.60%

            
	
              More
                than 10 but not more than 11

            	
              7.00%

            
	
              More
                than 11 but not more than 12

            	
              7.50%

            
	
              More
                than 12 but not more than 13

            	
              8.00%

            
	
              More
                than 13 but not more than 14

            	
              8.50%

            
	
              More
                than 14 but not more than 15

            	
              9.00%

            
	
              More
                than 15 but not more than 16

            	
              9.50%

            
	
              More
                than 16 but not more than 17

            	
              9.90%

            
	
              More
                than 17 but not more than 18

            	
              10.40%

            
	
              More
                than 18 but not more than 19

            	
              10.80%

            
	
              More
                than 19 but not more than 20

            	
              11.00%

            
	
              More
                than 20 but not more than 21

            	
              11.00%

            
	
              More
                than 21 but not more than 22

            	
              11.00%

            
	
              More
                than 22 but not more than 23

            	
              11.00%

            
	
              More
                than 23 but not more than 24

            	
              11.00%

            
	
              More
                than 24 but not more than 25

            	
              11.00%

            
	
              More
                than 25 but not more than 26

            	
              11.00%

            
	
              More
                than 26 but not more than 27

            	
              11.00%

            
	
              More
                than 27 but not more than 28

            	
              11.00%

            
	
              More
                than 28 but not more than 29

            	
              11.00%

            
	
              More
                than 29

            	
              11.00%

            

    

    

     

    
      
        
        

      

      
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    IN
      WITNESS WHEREOF, the parties have executed this Annex by their duly authorized
      representatives as of the date of the Agreement.

     

    
      	
              Deutsche
                Bank AG

            	
              HSBC
                Bank USA, National Association, not in its individual capacity, but
                solely
                as Supplemental Interest Trust Trustee for the Supplemental Interest
                Trust
                with respect to ACE Securities Corp. Home Equity Loan Trust, Series
                2007-HE4 Asset Backed Pass-Through Certificates

            
	 	 
	 	 
	
              By: /s/
                Chris Flanagan

              Chris
                Flanagan

              Authorized
                Representative

            	
              By: /s/
                Fernando Acebedo

              Fernando
                Acebedo 

              Vice
                President

            

    

    

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      J

     

    CAP
      CONTRACTS

     

    
      
        
        

      

      
        J-1

        
          

        

      

      
        
        

      

    

     

      

    
      	
              DATE:

            	
              April
                30, 2007

            
	 	 
	
              TO:

            	
              HSBC
                Bank USA, National Association, not in its individual capacity, but
                solely
                as Trustee for the ACE Securities Corp. Home Equity Loan Trust, Series
                2007-HE4 Asset Backed Pass-Through Certificates (“Party
                B”)

            
	 	 
	
              ATTENTION:

            	
              HSBC
                BANK USA, National Association

            
	 	
              CTLA
                - Structured Finance 

            
	 	
              452
                Fifth Avenue

            
	 	
              Attn:
                Susie Moy

            
	 	
              New
                York, NY 10018

            
	 	 
	
              FROM:

            	
              Deutsche
                Bank AG,
                New York Branch 

            
	 	 
	
              ATTENTION:

            	
              New
                York Derivatives Documentation 

            
	
              TELEPHONE:

            	
              1
                212 250 9425 

            
	
              FACSIMILE:

            	
              1
                212 797 0779 

            
	
              EMAIL:

            	
              NYderivative.documentation@db.com 

            
	 	 
	
              OUR
                REFERENCE:

            	
              N606258N

            
	 	 
	
              RE:

            	
              Interest
                Rate Cap Transaction

            

    

    

    The
      purpose of this long-form confirmation (“Confirmation”)
      is to
      confirm the terms and conditions of the current Transaction entered into on
      the
      Trade Date specified below (the “Transaction”)
      between
      Deutsche Bank AG,
      New
      York Branch
      (“Party
      A”) and
      HSBC
      Bank USA, National Association, not individually, but solely as trustee (the
      “Trustee”) on behalf of the ACE Securities Corp. Home Equity Loan Trust, Series
      2007-HE4 Asset Backed Pass-Through Certificates (the “Trust”)
      created under Pooling and Servicing Agreement, dated as of April 1, 2007, among
      Ace Securities Corp. (the “Depositor”),
      Ocwen
      Loan Servicing, LLC (a “Servicer”),
      GMAC
      Mortgage, LLC (a “Servicer”),
      Wells
      Fargo Bank, National Association (the “Master
      Servicer”
      and the
“Securities
      Administrator”)
      and
      HSBC Bank USA, National Association (the
      “Trustee”).
      This
      Confirmation evidences a complete and binding agreement between you and us
      to
      enter into the Transaction on the terms set forth below and replaces any
      previous agreement between us with respect to the subject matter hereof. This
      Confirmation constitutes a “Confirmation”
      and also
      constitutes a “Schedule”
      as
      referred to in the ISDA Master Agreement, and Paragraph 13 of a Credit Support
      Annex to the Schedule. 

    

    
      	1.    	
              This
                Confirmation shall supplement, form a part of, and be subject to
                an
                agreement in the form of the ISDA Master Agreement (Multicurrency
                - Cross
                Border) as published and copyrighted in 1992 by the International
                Swaps
                and Derivatives Association, Inc. (the “ISDA
                Master Agreement”),
                as if Party A and Party B had executed an agreement in such form
                on the
                date hereof, with a Schedule as set forth in Item 3 of this Confirmation,
                and an ISDA Credit Support Annex (Bilateral Form - ISDA Agreements
                Subject
                to New York Law Only version) as published and copyrighted in 1994
                by the
                International Swaps and Derivatives Association, Inc., with Paragraph
                13
                thereof as set forth in Annex A hereto (the “Credit
                Support Annex”).
                For the avoidance of doubt, the Transaction described herein shall
                be the
                sole Transaction governed by such ISDA Master Agreement. In the event
                of
                any inconsistency among any of the following documents, the relevant
                document first listed shall govern: (i) this Confirmation, exclusive
                of
                the provisions set forth in Item 3 hereof and Annex A hereto; (ii)
                the
                provisions set forth in Item 3 hereof, which are incorporated by
                reference
                into the Schedule; (iii) the Credit Support Annex; (iv) the Definitions;
                and (v) the ISDA Master Agreement.

            

    

    

    Each
      reference herein to a “Section” (unless specifically referencing the Pooling and
      Servicing Agreement) or to a “Section” “of this Agreement” will be construed as
      a reference to a Section of the ISDA Master Agreement; each herein reference
      to
      a “Part” will be construed as a reference to the provisions herein deemed
      incorporated in a Schedule to the ISDA Master Agreement; each reference herein
      to a “Paragraph” will be construed as a reference to a Paragraph of the Credit
      Support Annex. 

     

    

      Chairman
        of the Supervisory Board: Clemens Börsig

      Management
        Board: Josef Ackermann (Chairman), Hugo Banziger, Tessen von Heydebreck,
        Anthony
        Di Iorio, Hermann-Josef Lamberti

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

      
        Page
          2
of
          26

         

      

    

    
      	2.    	
              The
                terms of the particular Transaction to which this Confirmation relates
                are
                as follows:

            

    

    

    
      	
              Type
                of Transaction:

            	
              Interest
                Rate Cap

            
	 	 
	
              Notional
                Amount:

            	
              With
                respect to any Calculation Period, the lesser of (i) the amount set
                forth
                on Schedule I attached hereto for such Calculation Period and (ii)
                the
                aggregate principal balance of the Group I Mortgage Loans at the
                beginning
                of the Due Period in which the related Calculation Period begins
                (determined for this purpose without regard to any adjustment of
                the
                Floating Rate Payer Payment Date or Due Period relating to business
                days).

            
	 	 
	
              Trade
                Date:

            	
              April
                25, 2007

            
	 	 
	
              Effective
                Date:

            	
              April
                30, 2007

            
	 	 
	
              Termination
                Date:

            	
              October
                25, 2007, subject to adjustment in accordance with the Business Day
                Convention.

            
	 	 
	
              Fixed
                Amounts:

            	 
	 	 
	
              Fixed
                Rate Payer:

            	
              Party
                B

            
	 	 
	
              Fixed
                Rate Payer

            	 
	
              Payment
                Date:

            	
              April
                30, 2007

            
	 	 
	
              Fixed
                Amount:

            	
              $6,000

            
	
              .

            	 
	
              Floating
                Amounts:

            	 
	 	 
	
              Floating
                Rate Payer:

            	
              Party
                A

            
	 	 
	
              Floating
                Rate Payer

            	 
	
              Period
                End Dates:

            	
              The
                25th
                calendar day of each month during the Term of this Transaction, commencing
                May 25, 2007 and ending on the Termination Date, subject to adjustment
                in
                accordance with the Business Day Convention.

            
	 	 
	
              Floating
                Rate Payer 

            	 
	
              Payment
                Dates:

            	
              Early
                Payment shall be applicable. The Floating Rate Payer Payment Date
                shall be
                one (1) Business Day preceding each Floating Rate Payer Period End
                Date.

            
	 	 
	
              Cap
                Rate:

            	
              7.50%

            
	 	 
	
              Floating
                Rate Option:

            	
              USD-LIBOR-BBA

            
	 	 

    

     

    
      Global
        No. N606258N

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

        
          Page 3
            of
            26

           

        

      

    

    
      
        	
                Designated
                  Maturity:

              	
                One
                  month

              
	 	 
	
                Floating
                  Rate Day 

              	 
	
                Count
                  Fraction:

              	
                Actual/360

              
	 	 
	
                Reset
                  Dates:

              	
                The
                  first day of each Calculation Period.

              
	 	 
	
                Compounding:

              	
                Inapplicable

              
	 	 
	
                Business
                  Days:

              	
                New
                  York

              
	 	 
	
                Business
                  Day Convention:

              	
                Following

              
	 	 
	
                Calculation
                  Agent:

              	
                Party
                  A

              

      

    

     

    
      
        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

          
            Page 4
              of
              26

             

          

        

      

      
        
        

      

    

    
      	
              3.

            	
              Provisions
                Deemed Incorporated in a Schedule to the ISDA Master
                Agreement:

            

    

    

    
      	
              Part
                1.

            	
              Termination
                Provisions.

            

    

    

    For
      the
      purposes of this Agreement:-

    

    
      	(a)   	
              “Specified
                Entity”
                will not apply to Party A or Party B for any purpose.
                

            

    

    

    
      	
              (b)

            	
              “Specified
                Transaction”
                will have the meaning specified in Section
                14.

            

    

    

    
      	
              (c)

            	
              Events
                of Default.

            

    

    

    The
      statement below that an Event of Default will apply to a specific party means
      that upon the occurrence of such an Event of Default with respect to such party,
      the other party shall have the rights of a Non-defaulting Party under Section
      6
      of this Agreement; conversely, the statement below that such event will not
      apply to a specific party means that the other party shall not have such
      rights.

    

    
      	
            	(i)	
              The
                “Failure
                to Pay or Deliver”
                provisions of Section 5(a)(i) will apply to Party A and will apply
                to
                Party B; provided, however, that Section 5(a)(i) is hereby amended
                by
                replacing the word “third” with the word “first”; provided, further, that
                notwithstanding anything to the contrary in Section 5(a)(i), any
                failure
                by Party A to comply with or perform any obligation to be complied
                with or
                performed by Party A under the Credit Support Annex shall not constitute
                an Event of Default under Section 5(a)(i) unless (A) a Required Ratings
                Downgrade Event has occurred and been continuing for 30 or more Local
                Business Days and (B) such failure is not remedied on or before the
                third
                Local Business Day after notice of such failure is given to Party
                A.

            

    

    

    
      	
            	(ii)	
              The
                “Breach
                of Agreement”
                provisions of Section 5(a)(ii) will apply to Party A and will not
                apply to
                Party B.

            

    

    

    
      	
            	(iii)	
              The
                “Credit
                Support Default”
                provisions of Section 5(a)(iii) will apply to Party A and will not
                apply
                to Party B except that Section 5(a)(iii)(1) will apply to Party B
                solely
                in respect of Party B’s obligations under Paragraph 3(b) of the Credit
                Support Annex; provided, however, that notwithstanding anything to
                the
                contrary in Section 5(a)(iii)(1), any failure by Party A to comply
                with or
                perform any obligation to be complied with or performed by Party
                A under
                the Credit Support Annex shall not constitute an Event of Default
                under
                Section 5(a)(iii) unless (A) a Required Ratings Downgrade Event has
                occurred and been continuing for 30 or more Local Business Days and
                (B)
                such failure is not remedied on or before the third Local Business
                Day
                after notice of such failure is given to Party
                A.

            

    

    

    
      	
            	(iv)	
              The
                “Misrepresentation”
                provisions of Section 5(a)(iv) will apply to Party A and will not
                apply to
                Party B. 

            

    

    

    
      	
            	(v)	
              The
                “Default
                under Specified Transaction”
                provisions of Section 5(a)(v) will apply to Party A and will not
                apply to
                Party B.

            

    

    

    
      	
            	(vi)	
              The
                “Cross
                Default”
                provisions of Section 5(a)(vi) will apply to Party A and will not
                apply to
                Party B, provided, however, that, notwithstanding the foregoing,
                an Event
                of Default shall not occur under either Section 5(a)(vi)(1) or Section
                5(a)(vi)(2) if (A) (I) the default, or other similar event or condition
                referred to in Section 5(a)(vi)(1) or the failure to pay referred
                to in
                Section 5(a)(vi)(2) is a failure to pay or deliver caused by an error
                or
                omission of an administrative or operational nature, and (II) funds
                or the
                asset to be delivered were available to such party to enable it to
                make
                the relevant payment or delivery when due and (III) such payment
                or
                delivery is made within three (3) Local Business Days following receipt
                of
                written notice from an interested party of such failure to pay, or
                (B)
                such party was precluded from paying, or was unable to pay, using
                reasonable means, through the office of the party through which it
                was
                acting for purposes of the relevant Specified Indebtedness, by reason
                of
                force majeure, act of State, illegality or impossibility.
                

            

    

     

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      Page 5
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    For
      purposes of Section 5(a)(vi), solely with respect to Party A:

    

    “Specified
      Indebtedness” will have the meaning specified in Section 14 ,except that such
      term shall not include obligations in respect of deposits received in the
      ordinary course of Party A’s banking business.

    

    “Threshold
      Amount” means with respect to Party A an amount equal to three percent (3%) of
      the Shareholders’ Equity of Party A or, if applicable, the Eligible Guarantor.

    

    “Shareholders’
      Equity” means with respect to an entity, at any time, the sum (as shown in the
      most recent annual audited financial statements of such entity) of (i) its
      capital stock (including preferred stock) outstanding, taken at par value,
      (ii)
      its capital surplus and (iii) its retained earnings, minus (iv) treasury stock,
      each to be determined in accordance with generally accepted accounting
      principles.

    

    
      	
            	(vii)	
              The
                “Bankruptcy”
                provisions of Section 5(a)(vii) will apply to Party A and will apply
                to
                Party B except that the provisions of Section 5(a)(vii)(2), (6) (to
                the
                extent that such provisions refer to any appointment contemplated
                or
                effected by the Pooling and Servicing Agreement or any appointment
                to
                which Party B has not become subject), (7) and (9) will not apply
                to Party
                B; provided that, with respect to Party B only, Section 5(a)(vii)(4)
                is
                hereby amended by adding after the words “against it” the words
                “(excluding any proceeding or petition instituted or presented by
                Party A
                or its Affiliates)”, and Section 5(a)(vii)(8) is hereby amended by
                deleting the words “to (7) inclusive” and inserting lieu thereof “, (3),
                (4) as amended, (5), (6) as amended, or
                (7)”.

            

    

    

    
      	
            	(viii)	
              The
                “Merger
                Without Assumption”
                provisions of Section 5(a)(viii) will apply to Party A and will apply
                to
                Party B.

            

    

    

    
      	(d)   	
              Termination
                Events.

            

    

    

    The
      statement below that a Termination Event will apply to a specific party means
      that upon the occurrence of such a Termination Event, if such specific party
      is
      the Affected Party with respect to a Tax Event, the Burdened Party with respect
      to a Tax Event Upon Merger (except as noted below) or the non-Affected Party
      with respect to a Credit Event Upon Merger, as the case may be, such specific
      party shall have the right to designate an Early Termination Date in accordance
      with Section 6 of this Agreement; conversely, the statement below that such
      an
      event will not apply to a specific party means that such party shall not have
      such right; provided, however, with respect to “Illegality” the statement that
      such event will apply to a specific party means that upon the occurrence of
      such
      a Termination Event with respect to such party, either party shall have the
      right to designate an Early Termination Date in accordance with Section 6 of
      this Agreement.

    

    
      	
            	(i)	
              The
                “Illegality”
                provisions of Section 5(b)(i) will apply to Party A and will apply
                to
                Party B.

            

    

    

    
      	 	
              (ii)

            	
              The
                “Tax
                Event”
                provisions of Section 5(b)(ii) will apply to Party A except that,
                for
                purposes of the application of Section 5(b)(ii) to Party A, Section
                5(b)(ii) is hereby amended by deleting the words “(x) any action taken by
                a taxing authority, or brought in a court of competent jurisdiction,
                on or
                after the date on which a Transaction is entered into (regardless
                of
                whether such action is taken or brought with respect to a party to
                this
                Agreement) or (y)”, and the “Tax
                Event”
                provisions of Section 5(b)(ii) will apply to Party B.
                

            

    

    

    
      	 	
              (iii)

            	
              The
                “Tax
                Event Upon Merger”
                provisions of Section 5(b)(iii) will apply to Party A and will apply
                to
                Party B, provided that Party A shall not be entitled to designate
                an Early
                Termination Date by reason of a Tax Event upon Merger in respect
                of which
                it is the Affected Party.

            

    

    
       

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              (iv)

            	
              The
                “Credit
                Event Upon Merger”
                provisions of Section 5(b)(iv) will not apply to Party A and will
                not
                apply to Party B.

            

    

    

    
      	
              (e)

            	
              The
                “Automatic
                Early Termination”
                provision of Section 6(a) will not apply to Party A and will not
                apply to
                Party B.

            

    

    

    
      	(f)    	
              Payments
                on Early Termination.
                For the purpose of Section 6(e) of this
                Agreement:

            

    

    

    
      	
            	(i)	
              Market
                Quotation will apply, provided, however, that, in the event of a
                Derivative Provider Trigger Event, the following provisions will
                apply:

            

    

    

    
      	 	
              (A)
                

            	
              The
                definition of Market Quotation in Section 14 shall be deleted in
                its
                entirety and replaced with the
                following:

            

    

    

    “Market
      Quotation” means,
      with respect to one or more Terminated Transactions, a Firm Offer which is
      (1)
      made by a Reference Market-maker that is an Eligible Replacement, (2) for an
      amount that would be paid to Party B (expressed as a negative number) or by
      Party B (expressed as a positive number) in consideration of an agreement
      between Party B and such Reference Market-maker to enter into a Replacement
      Transaction, and (3) made on the basis that Unpaid Amounts in respect of the
      Terminated Transaction or group of Transactions are to be excluded but, without
      limitation, any payment or delivery that would, but for the relevant Early
      Termination Date, have been required (assuming satisfaction of each applicable
      condition precedent) after that Early Termination Date is to be
      included.

    

    
      	 	
              (B)

            	
              The
                definition of Settlement Amount shall be deleted in its entirety
                and
                replaced with the following:

            

    

    

    “Settlement
      Amount”
      means,
      with respect to any Early Termination Date, an amount (as determined by Party
      B)
      equal to: 

    

    
      	 	
              (a)

            	
              If
                a Market Quotation for the relevant Terminated Transaction or group
                of
                Terminated Transactions is accepted by Party B so as to become legally
                binding on or before the day falling ten Local Business Days after
                the day
                on which the Early Termination Date is designated, or such later
                day as
                Party B may specify in writing to Party A, but in either case no
                later
                than one Local Business Day prior to the Early Termination Date (such
                day,
                the “Latest Settlement Amount Determination Day”), the Termination
                Currency Equivalent of the amount (whether positive or negative)
                of such
                Market Quotation; 

            

    

    

    
      	 	
              (b)

            	
              If,
                on the Latest Settlement Amount Determination Day, no Market Quotation
                for
                the relevant Terminated Transaction or group of Terminated Transactions
                has been accepted by Party B so as to become legally binding and
                one or
                more Market Quotations from
                Approved Replacements have
                been made and remain capable of becoming legally binding upon acceptance,
                the Settlement Amount shall equal the Termination Currency Equivalent
                of
                the amount (whether positive or negative) of the lowest of such Market
                Quotations (for the avoidance of doubt, the lowest of such Market
                Quotations shall be the lowest Market Quotation of
                such Market Quotations
                expressed as a positive number or, if any of such Market Quotations
                is
                expressed as a negative number, the Market Quotation expressed as
                a
                negative number with the largest absolute value);
                or

            

    

    

    
      	 	
              (c)

            	
              If,
                on the Latest Settlement Amount Determination Day, no Market Quotation
                for
                the relevant Terminated Transaction or group of Terminated Transactions
                is
                accepted by Party B so as to become legally binding and no Market
                Quotation from an Approved Replacement remains capable of becoming
                legally
                binding upon acceptance, the Settlement Amount shall equal Party
                B’s Loss
                (whether positive or negative and without reference to any Unpaid
                Amounts)
                for the relevant Terminated Transaction or group of Terminated
                Transactions.

            

    

    
       

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            Page 7
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              (C)

            	
              If
                Party B requests Party A in writing to obtain Market Quotations,
                Party A
                shall use its reasonable efforts to do so before the Latest Settlement
                Amount Determination Day.

            

    

    

    
      	 	
              (D)

            	
              If
                the Settlement Amount is a negative number, Section 6(e)(i)(3) shall
                be
                deleted in its entirety and replaced with the
                following:

            

    

    

    “(3)
      Second
      Method and Market Quotation.
      If the
      Second Method and Market Quotation apply, (I) Party B shall pay to Party A
      an
      amount equal to the absolute value of the Settlement Amount in respect of the
      Terminated Transactions, (II) Party B shall pay to Party A the Termination
      Currency Equivalent of the Unpaid Amounts owing to Party A and (III) Party
      A
      shall pay to Party B the Termination Currency Equivalent of the Unpaid Amounts
      owing to Party B; provided, however, that (x) the amounts payable under the
      immediately preceding clauses (II) and (III) shall be subject to netting in
      accordance with Section 2(c) of this Agreement and (y) notwithstanding any
      other
      provision of this Agreement, any amount payable by Party A under the immediately
      preceding clause (III) shall not be netted-off against any amount payable by
      Party B under the immediately preceding clause (I).”

     

    
      	 	
              (E)

            	
              At
                any time on or before the Latest Settlement Amount Determination
                Day at
                which two or more Market Quotations from Approved Replacements remain
                capable of becoming legally binding upon acceptance, Party B shall
                be
                entitled to accept only the lowest of such Market Quotations (for
                the
                avoidance of doubt, the lowest of such Market Quotations shall be
                the
                lowest Market Quotation of such Market Quotations expressed as a
                positive
                number or, if any of such Market Quotations is expressed as a negative
                number, the Market Quotation expressed as a negative number with
                the
                largest absolute value).

            

    

    

    
      	
            	(ii)	
              The
                Second Method will apply.

            

    

    

    
      	(g)   	
              “Termination
                Currency”
                means USD.

            

    

    

    
      	(h)   	
              Additional
                Termination Events.
                Additional Termination Events will apply as provided in Part 5(c).
                

            

    

    
       

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            Page 8
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    Part
      2.  Tax
      Matters.

    

    
      	(a)   	
              Tax
                Representations. 

            

    

    

    
      	 	
              (i)

            	
              Payer
                Representations.
                For the purpose of Section 3(e) of this Agreement:
                

            

    

     

    
      	
            	(A)	
              Party
                A makes the following
                representation(s):

            

    

    

    It
      is not
      required by any applicable law, as modified by the practice of any relevant
      governmental revenue authority, of any Relevant Jurisdiction to make any
      deduction or withholding for or on account of any Tax from any payment (other
      than interest under Section 2(e), 6(d)(ii) or 6(e) of this Agreement) to be
      made
      by it to the other party under this Agreement. In making this representation,
      it
      may rely on: the accuracy of any representations made by the other party
      pursuant to Section 3(f) of this Agreement; (ii) the satisfaction of the
      agreement contained in Section 4(a)(i) or 4(a)(iii) of this Agreement and the
      accuracy and effectiveness of any document provided by the other party pursuant
      to Section 4(a)(i) or 4(a)(iii) of this Agreement; and (iii) the satisfaction
      of
      the agreement of the other party contained in Section 4(d) of this Agreement,
      provided that it shall not be a breach of this representation where reliance
      is
      placed on clause (ii) and the other party does not deliver a form or document
      under Section 4(a)(iii) by reason of material prejudice to its legal or
      commercial position.

     

    
      	
            	(B)	
              Party
                B makes the following
                representation(s):

            

    

    

    None.

    

    
      	
            	(ii)	
              Payee
                Representations.
                For the purpose of Section 3(f) of this Agreement:
                

            

    

     

    
      	
            	(A)	
              Party
                A makes the following
                representation(s):

            

    

    

    It
      is a
“foreign person” within the meaning of the applicable U.S. Treasury Regulations
      concerning information reporting and backup withholding tax (as in effect on
      January 1, 2001), unless Party A provides written notice to Party B that it
      is
      no longer a foreign person. In respect of any Transaction it enters into through
      an office or discretionary agent in the United States or which otherwise is
      allocated for United States federal income tax purposes to such United States
      trade or business, each payment received or to be received by it under such
      Transaction will be effectively connected with its conduct of a trade or
      business in the United States.

     

    
      	
            	(B)	
              Party
                B makes the following
                representation(s):

            

    

    

    None. 

    

    
      	
              (b)

            	
              Tax
                Provisions.

            

    

    

    
      	 	
              (i)

            	
              Gross
                Up.
                Section 2(d)(i)(4) shall not apply to Party B as X, and Section 2(d)(ii)
                shall not apply to Party B as Y, in each case such that Party B shall
                not
                be required to pay any additional amounts referred to
                therein.

            

    

    

    
      	 	
              (ii)

            	
              Indemnifiable
                Tax.
                The definition of “Indemnifiable Tax” in Section 14 is deleted in its
                entirety and replaced with the
                following:

            

    

    

    “Indemnifiable
      Tax”
      means,
      in relation to payments by Party A, any Tax and, in relation to payments by
      Party B, no Tax. 

    
       

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     Part
      3.  Agreement
      to Deliver Documents.  

    

    
      	(a)   	
              For
                the purpose of Section 4(a)(i), tax forms, documents, or certificates
                to
                be delivered are:

            

    

    

    
      	
              Party
                required to deliver document

            	 	
              Form/Document/

              Certificate

            	 	
              Date
                by which to

              be
                delivered

            
	 	 	 	 	 
	
              Party
                A

               

            	 	
              A
                correct, complete and duly executed U.S. Internal Revenue Service
                Form
                W-8ECI or other applicable form (or successor thereto), together
                with
                appropriate attachments, that eliminates U.S. federal withholding
                and
                backup withholding Tax on payments to Party A under this
                Agreement.

               

            	 	
              (i)
                upon execution of this Agreement, (ii) on or before the first payment
                date
                under this Agreement, including any Credit Support Document, (iii)
                promptly upon the reasonable demand by Party B, (iv) prior to the
                expiration or obsolescence of any previously delivered form, and
                (v)
                promptly upon the information on any such previously delivered form
                becoming inaccurate or incorrect.

            
	 	 	 	 	 
	
              Party
                B

               

            	 	
              Party
                B will deliver at closing an original properly completed and executed
                United States Internal Revenue Service Form W-9 or other applicable
                form
                (or any successor thereto) with respect to any payments received
                or to be
                received by Party A, that eliminates U.S. federal withholding and
                backup
                withholding Tax on payments to Party A under this Agreement, and
                may
                deliver other tax forms relating to the beneficial owner of payments
                to
                Party B under this Agreement from time to time.

            	 	
              (i)
                upon execution of this Agreement, (ii) on or before the first payment
                date
                under this Agreement, including any Credit Support Document, (iii)
                promptly upon the reasonable demand by Party B, (iv) prior to the
                expiration or obsolescence of any previously delivered form, and
                (v)
                promptly upon the information on any such previously delivered form
                becoming inaccurate or incorrect.

            

    

    
       

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    (b) For
      the
      purpose of Section 4(a)(ii), other documents to be delivered (unless otherwise
      publicly available) are:

    

    
      	
              Party
                required to deliver document

            	 	
              Form/Document/

              Certificate

            	 	
              Date
                by which to

              be
                delivered

            	 	
              Covered
                by Section 3(d) Representation

            
	 	 	 	 	 	 	 
	
              Party
                A and Party
                B

               

            	 	
              Any
                documents required by the receiving party to evidence the authority
                of the
                delivering party or its Credit Support Provider, if any, for it to
                execute
                and deliver the Agreement, this Confirmation, and any Credit Support
                Documents to which it is a party, and to evidence the authority of
                the
                delivering party or its Credit Support Provider to perform its obligations
                under the Agreement, this Confirmation and any Credit Support Document,
                as
                the case may be

            	 	
              Upon
                the execution and delivery of this Agreement

               

            	 	
              Yes

               

            
	 	 	 	 	 	 	 
	
              Party
                A and

              Party
                B

               

            	 	
              A
                certificate of an authorized officer of the party, as to the incumbency
                and authority of the respective officers of the party signing the
                Agreement, this Confirmation, and any relevant Credit Support Document,
                as
                the case may be

            	 	
              Upon
                the execution and delivery of this Agreement

               

            	 	
              Yes

               

            
	 	 	 	 	 	 	 
	
              Party
                A

            	 	
              Annual
                Report of Party A containing consolidated financial statements certified
                by independent certified public accountants and prepared in accordance
                with generally accepted accounting principles in the country in which
                Party A is organized

            	 	
              Promptly
                upon becoming publicly available

               

            	 	
              Yes

               

            
	 	 	 	 	 	 	 
	
              Party
                A

            	 	
              Quarterly
                Financial Statements of Party A containing unaudited, consolidated
                financial statements of Party A’s fiscal quarter prepared in accordance
                with generally accepted accounting principles in the country in which
                Party A is organized

            	 	
              Promptly
                upon becoming publicly available

            	 	
              Yes

            
	 	 	 	 	 	 	 
	
              Party
                A

            	 	
              An
                opinion of counsel to Party A acceptable in form and substance to
                Party
                B

            	 	
              Upon
                the execution and delivery of this Agreement

            	 	
              No

            

    

    

    Part
      4. Miscellaneous. 

    

    
      	
              (a)

            	
              Address
                for Notices:
                For the purposes of Section 12(a) of this
                Agreement:

            

    

    

    Address
      for notices or communications to Party A: 

     

    Any
      notice to Party A relating to a particular Transaction shall be delivered to
      the
      address or facsimile number specified in the Confirmation of such Transaction.
      Any notice delivered for purposes of Sections 5 and 6 (other than notices under
      Section 5(a)(i) with respect to Party A) of this Agreement shall be delivered
      to
      the following address: 

    
       

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                        Deutsche
                          Bank AG, Head Office 

                      
	 	
                        Taunusanlage
                          12 

                      
	 	
                        60262
                          Frankfurt 

                      
	 	
                        GERMANY
                          

                      
	 	
                        Attention:
                          Legal Department 

                      
	 	
                        Fax
                          No: 0049 69 910 36097

                      
	 	 
	
                        (For
                          all purposes)

                      	 
	 	 
	
                        Address
                          for notices or communications to Party B:

                      
	 	 
	
                        Address:

                      	
                        HSBC
                          BANK USA, National Association 

                      
	 	
                        CTLA
                          - Structured Finance 

                      
	 	
                        452
                          Fifth Avenue 

                      
	 	
                        New
                          York, NY  10018

                      
	
                        Attention:

                      	
                        Susie
                          Moy

                      
	
                        Tel:

                      	
                        212-525-1362

                      
	 	 
	
                        with
                          a copy to:

                      	 
	 	 
	
                        Address:

                      	
                        Wells
                          Fargo Bank, N.A.

                      
	 	
                        9062
                          Old Annapolis Road

                      
	 	
                        Columbia,
                          Maryland 21045

                      
	
                        Attention:

                      	
                        Client
                          Manager Ace 2007-HE4

                      
	
                        Tel:

                      	
                        410-884-2000

                      
	
                        Fax:

                      	
                        410-715-2380

                      
	 	 
	
                        (For
                          all purposes)

                      	 

              

               

            

          

        

      

    

    
      	
              (b)   

            	
              Process Agent.
                For the purpose of Section
                13(c):

            

    

     

    Party
      A
      appoints as its Process Agent: Not applicable.

    

    Party
      B
      appoints as its Process Agent: Not applicable.

    

    
      	
              (c)

            	
              Offices.
                The provisions of Section 10(a) will apply to this Agreement; neither
                Party A nor Party B has any Offices other than as set forth in the
                Notices
                Section and Party A agrees that, for purposes of Section 6(b) of
                this
                Agreement, it shall not in the future have any Office other than
                one in
                the United States.

            

    

    

    
      	
              (d)

            	
              Multibranch
                Party.
                For the purpose of Section 10(c) of this
                Agreement:

            

    

    

    Party
      A
      is not a Multibranch Party.

    

    
      	 	
              Party
                B is not a Multibranch Party.

            

    

    

    
      	
              (e)

            	
              Calculation
                Agent.
                The Calculation Agent is Party A; provided, however, that if an Event
                of
                Default shall have occurred with respect to Party A, Party B shall
                have
                the right to appoint as Calculation Agent a third party, reasonably
                acceptable to Party A, the cost for which shall be borne by Party
                A.

            

    

    

    
      	(f)    	
              Credit
                Support Document. 

            

    

    
       

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              Party
                A:

            	
              The
                Credit Support Annex, and any guarantee in support of Party A’s
                obligations under this Agreement.

            

    

    

    
      	
            	Party
              B:	
              The
                Credit Support Annex, solely in respect of Party B’s obligations under
                Paragraph 3(b) of the Credit Support
                Annex.

            

    

    

    
      	
              (g)

            	
              Credit
                Support Provider.

            

    

    

    
      	
            	PartyA:	
              The
                guarantor under any guarantee in support of Party A’s obligations under
                this Agreement.

            

    

    

    
      	
            	PartyB:	
              None.

            

    

    

    
      	
              (h)

            	
              Governing
                Law.
                The parties to this Agreement hereby agree that the law of the State
                of
                New York shall govern their rights and duties in whole, without regard
                to
                the conflict of law provisions thereof other than New York General
                Obligations Law Sections 5-1401 and 5-1402.

            

    

    

    
      	
              (i)

            	
              Netting
                of Payments.
                The parties agree that subparagraph (ii) of Section 2(c) will apply
                to
                each Transaction hereunder. 

            

    

    

    
      	
              (j)

            	
              Affiliate.“Affiliate”
                shall have the meaning assigned thereto in Section 14; provided,
                however,
                that Party B shall be deemed to have no Affiliates for purposes of
                this
                Agreement, including for purposes of Section
                6(b)(ii).

            

    

    
       

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    Part
      5.  Others
      Provisions.

    

    
      	
              (a)

            	
              Definitions.
                Unless
                otherwise specified in a Confirmation, this Agreement and each Transaction
                under this Agreement are subject to the 2000 ISDA Definitions as
                published
                and copyrighted in 2000 by the International Swaps and Derivatives
                Association, Inc. (the “Definitions”),
                and will be governed in all relevant respects by the provisions set
                forth
                in the Definitions, without regard to any amendment to the Definitions
                subsequent to the date hereof. The provisions of the Definitions
                are
                hereby incorporated by reference in and shall be deemed a part of
                this
                Agreement, except that (i) references in the Definitions to a “Swap
                Transaction” shall be deemed references to a “Transaction” for purposes of
                this Agreement, and (ii) references to a “Transaction” in this Agreement
                shall be deemed references to a “Swap Transaction” for purposes of the
                Definitions. Each term capitalized but not defined in this Agreement
                shall
                have the meaning assigned thereto in the Pooling and Servicing
                Agreement.

            

    

     

    
      	(b)   	
              Amendments
                to ISDA Master Agreement.

            

    

    

    
      	 	
              (i)

            	
              Single
                Agreement.
                Section 1(c) is hereby amended by the adding the words “including, for the
                avoidance of doubt, the Credit Support Annex” after the words “Master
                Agreement”. 

            

    

    

    
      	
            	(ii)	
              Conditions
                Precedent. Section
                2(a)(iii) is hereby amended by adding the following at the end thereof:
                

            

    

    

    Notwithstanding
      anything to the contrary in Section 2(a)(iii)(1), if an Event of Default with
      respect to Party B or Potential Event of Default with respect to Party B has
      occurred and been continuing for more than 30 Local Business Days and no Early
      Termination Date in respect of the Affected Transactions has occurred or been
      effectively designated by Party A, the obligations of Party A under Section
      2(a)(i) shall cease to be subject to the condition precedent set forth in
      Section 2(a)(iii)(1) with respect to such specific occurrence of such Event
      of
      Default or such Potential Event of Default (the “Specific
      Event”);
      provided, however, for the avoidance of doubt, the obligations of Party A under
      Section 2(a)(i) shall be subject to the condition precedent set forth in Section
      2(a)(iii)(1) (subject to the foregoing) with respect to any subsequent
      occurrence of the same Event of Default with respect to Party B or Potential
      Event of Default with respect to Party B after the Specific Event has ceased
      to
      be continuing and with respect to any occurrence of any other Event of Default
      with respect to Party B or Potential Event of Default with respect to Party
      B
      that occurs subsequent to the Specific Event. 

    

    
      	 	
              (iii)

            	
              Change
                of Account.
                Section 2(b) is hereby amended by the addition of the following after
                the
                word “delivery” in the first line
                thereof:

            

    

     

    “to
      another account in the same legal and tax jurisdiction as the original
      account”.

    

    
      	 	
              (iv)

            	
              Representations.
                Section 3 is hereby amended by adding at the end thereof the following
                subsection (g): 

            

    

    

    
      	 	
              “(g)

            	
              Relationship
                Between Parties. 

            

    

    

    
      	 	
              (1)

            	
              Nonreliance.
                (i) It is not relying on any statement or representation of the other
                party regarding the Transaction (whether written or oral), other
                than the
                representations expressly made in this Agreement or the Confirmation
                in
                respect of that Transaction and (ii) it has consulted with its own
                legal,
                regulatory, tax, business, investment, financial and accounting advisors
                to the extent it has deemed necessary, and it has made its own investment,
                hedging and trading decisions based upon its own judgment and upon
                any
                advice from such advisors as it has deemed necessary and not upon
                any view
                expressed by the other party.

            

    

    
       

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              (2)

            	
              Evaluation
                and Understanding. (i) It has the capacity to evaluate (internally
                or
                through independent professional advice) the Transaction and has
                made its
                own decision to enter into the Transaction and (ii) It understands
                the
                terms, conditions and risks of the Transaction and is willing and
                able to
                accept those terms and conditions and to assume those risks, financially
                and otherwise. 

            

    

    

    
      	 	
              (3)

            	
              Purpose.
                It is entering into the Transaction for the purposes of managing
                its
                borrowings or investments, hedging its underlying assets or liabilities
                or
                in connection with a line of business.

            

    

    

    
      	 	
              (4)

            	
              Status
                of Parties. The other party is not acting as an agent, fiduciary
                or
                advisor for it in respect of the Transaction.

            

    

    

    
      	 	
              (5)

            	
              Eligible
                Contract Participant. It is an “eligible swap participant” as such term is
                defined in, Section 35.1(b)(2) of the regulations (17 C.F.R. 35)
                promulgated under, and an “eligible contract participant” as defined in
                Section 1(a)(12) of the Commodity Exchange Act, as
                amended.”

            

    

    

    
      	 	
              (v)

            	
              Transfer
                to Avoid Termination Event.
                Section 6(b)(ii) is hereby amended by (i) deleting the words “or if a Tax
                Event Upon Merger occurs and the Burdened Party is the Affected Party,”
                and (ii) by deleting the words “to transfer” and inserting the words “to
                effect a Permitted Transfer” in lieu
                thereof.

            

    

    

    
      	 	
              (vi)

            	
              Jurisdiction.
                Section
                13(b) is hereby amended by: (i) deleting in the second line of
                subparagraph (i) thereof the word "non-", (ii) deleting “; and” from the
                end of subparagraph 1 and inserting “.” in lieu thereof, and (iii)
                deleting the final paragraph
                thereof.

            

    

    

    
      	 	
              (vii)

            	
              Local
                Business Day.
                The definition of Local Business Day in Section 14 is hereby amended
                by
                the addition of the words “or any Credit Support Document” after “Section
                2(a)(i)” and the addition of the words “or Credit Support Document” after
                “Confirmation”. 

            

    

    

    
      	
              (c)

            	
              Additional
                Termination Events.
                The following Additional Termination Events will
                apply:

            

    

    

    
      	
            	(i)	
              First
                Rating Trigger Collateral.
                If
                (A) it is not the case that a Moody’s Second Trigger Ratings Event has
                occurred and been continuing for 30 or more Local Business Days and
                (B)
                Party
                A has failed to comply with or perform any obligation to be complied
                with
                or performed by Party A in accordance with the Credit Support Annex,
                then
                an Additional Termination Event shall have occurred with respect
                to Party
                A and Party A shall be the sole Affected Party with respect to such
                Additional Termination Event. 

            

    

    

    
      	
            	(ii)	
              Second
                Rating Trigger Replacement.
                If
                (A) a Required Ratings Downgrade Event has occurred and been continuing
                for 30 or more Local Business Days and (B) (i) at least one Eligible
                Replacement has made a Firm Offer to be the transferee of all of
                Party A’s
                rights and obligations under this Agreement (and such Firm Offer
                remains
                an offer that will become legally binding upon such Eligible Replacement
                upon acceptance by the offeree) and/or (ii) an Eligible Guarantor
                has made
                a Firm Offer to provide an Eligible Guarantee (and such Firm Offer
                remains
                an offer that will become legally binding upon such Eligible Guarantor
                immediately upon acceptance by the offeree), then an Additional
                Termination Event shall have occurred with respect to Party A and
                Party A
                shall be the sole Affected Party with respect to such Additional
                Termination Event. 

            

    

    
       

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            	(iii)	
              Amendment
                of Pooling and Servicing Agreement.
                If, without the prior written consent of Party A where such consent
                is
                required under the Pooling and Servicing Agreement (such consent
                not to be
                unreasonably withheld), an amendment is made to the Pooling and Servicing
                Agreement which amendment could reasonably be expected to have a
                material
                adverse effect on the interests of Party A (excluding, for the avoidance
                of doubt, any amendment to the Pooling and Servicing Agreement that
                is
                entered into solely for the purpose of appointing a successor servicer,
                master servicer, securities administrator, trustee or other service
                provider) under the Credit Support Annex, an Additional Termination
                Event
                shall have occurred with respect to Party B and Party B shall be
                the sole
                Affected Party with respect to such Additional Termination Event.
                

            

    

    

    
      	 	
              (iv)

            	
              Failure
                to Comply with Regulation AB Requirements. If,
                upon the occurrence of a Disclosure Event (as defined in Part 5(e)
                below)
                Party A has not complied with any of the provisions set forth in
                clause
                (iii) of Part 5(e) below, then an Additional Termination Event shall
                have
                occurred with respect to Party A and Party A shall be the sole Affected
                Party with respect to such Additional Termination
                Event.

            

    

    

    
      	 	
              (v)

            	
              Optional
                Termination of Securitization. An
                Additional Termination Event shall occur upon the notice to
                Certificateholders of an Optional Termination becoming unrescindable
                in
                accordance with Article X of the Pooling and Servicing Agreement.
                Party B
                shall be the sole Affected Party with respect to such Additional
                Termination Event; provided, however, that notwithstanding anything
                to the
                contrary in Section 6(b)(iv), only Party B may designate an Early
                Termination Date in respect of this Additional Termination
                Event.

            

    

    

    

    
      	
              (d)

            	
              Required
                Ratings Downgrade Event.
                In
                the event that no Relevant Entity has credit ratings at least equal
                to the
                Required Ratings Threshold, then Party A shall, as soon as reasonably
                practicable and so long as a Required Ratings Downgrade Event is
                in
                effect, at its own expense, using commercially reasonable efforts,
                procure
                either (A) a Permitted Transfer or (B) an Eligible
                Guarantee.

            

    

    

    
      	(e)   	
              Compliance
                with Regulation AB. 

            

    

    

    (i) Party
      A
      agrees and acknowledges that Ace Securities Corp. (“ACE”) is required under
      Regulation AB under the Securities Act of 1933, as amended, and the Securities
      Exchange Act of 1934, as amended (the “Exchange Act”) (“Regulation AB”), to
      disclose certain financial information regarding Party A or its group of
      affiliated entities, if applicable, depending on the aggregate “significant
      percentage” of this Agreement and any other derivative contracts between Party A
      or its group of affiliated entities, if applicable, and Counterparty, as
      calculated from time to time in accordance with Item 1115 of Regulation
      AB.

    

    (ii) It
      shall
      be a swap disclosure event (“Swap Disclosure Event”) if, on any Business Day
      after the date hereof, ACE requests from Party A the applicable financial
      information described in Item 1115 of Regulation AB (such request to be based
      on
      a reasonable determination by ACE, in good faith, that such information is
      required under Regulation AB) (the “Swap Financial Disclosure”).

    

    (iii)
       Upon
      the
      occurrence of a Swap Disclosure Event, Party A, at its own expense, shall (1)(a)
      either (i) provide to ACE the current Swap Financial Disclosure in an
      EDGAR-compatible format (for example, such information may be provided in
      Microsoft Word® or Microsoft Excel® format but not in .pdf format) or (ii)
      provide written consent to ACE to incorporation by reference of such current
      Swap Financial Disclosure as is filed with the Securities and Exchange
      Commission in the Exchange Act Reports of ACE, (b) if applicable, cause its
      outside accounting firm to provide its consent to filing or incorporation by
      reference in the Exchange Act Reports of ACE of such accounting firm’s report
      relating to their audits of such current Swap Financial Disclosure, and (c)
      provide to ACE any updated Swap Financial Disclosure with respect to Party
      A or
      any entity that consolidates Party A within five days of the release of any
      such
      updated Swap Financial Disclosure; (2) secure
      an
      Eligible Replacement, which entity complies with the requirements of Item 1115
      of Regulation AB, including providing the information contemplated by Part
      5(e)(iii)(1) above, to enter a Replacement Transaction by way of a Permitted
      Transfer or (3) obtain an Eligible Guarantee of Party A’s obligations under this
      Agreement from an affiliate of Party A that is able to comply with the financial
      information disclosure requirements of Item 1115 of Regulation AB, including
      providing the information contemplated by Part 5(e)(iii)(1) above, such that
      disclosure provided in respect of the affiliate will satisfy any disclosure
      requirements applicable to Party A, and cause such affiliate to provide Swap
      Financial Disclosure. If permitted by Regulation AB, any required Swap Financial
      Disclosure may be provided by incorporation by reference from reports filed
      pursuant to the Exchange Act.

    
       

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    (iv) Party
      A
      and the primary obligor under any Credit Support Document agree that, in the
      event that Party A provides Swap Financial Disclosure to ACE in accordance
      with
      Part 5(e)(iii)(a) or causes its affiliate to provide Swap Financial Disclosure
      to ACE in accordance with Part 5(e)(iii)(c), Party A and such primary obligor
      will indemnify and hold harmless ACE, its respective directors or officers
      and
      any person controlling ACE, from and against any and all losses, claims, damages
      and liabilities caused by any untrue statement or alleged untrue statement
      of a
      material fact contained in such Swap Financial Disclosure or caused by any
      omission or alleged omission to state in such Swap Financial Disclosure a
      material fact, when considered in conjunction with any other information
      regarding Party A or the derivative instrument being written by Party A in
      the
      final prospectus for ACE-2007-HE4, required to be stated therein or necessary
      to
      make the statements therein, in light of the circumstances under which they
      were
      made, not misleading.

    

    (v)
      Third
      Party Beneficiary. ACE shall be an express third party beneficiary of this
      Agreement as if a party hereto to the extent of ACE’s rights explicitly
      specified herein.

    

    

    
      	
              (f)

            	
              Transfers. 

            

    

     

    
      	
            	(i)	
              Section
                7 is hereby amended to read in its entirety as
                follows:

            

    

     

    “Except
      with respect to any Permitted Transfer pursuant to Section 6(b)(ii), Part 5(d),
      and Part 5(e), or the succeeding sentence, neither Party A nor Party B is
      permitted to assign, novate or transfer (whether by way of security or
      otherwise) as a whole or in part any of its rights, obligations or interests
      under the Agreement or any Transaction unless (a) the prior written consent
      of
      the other party is obtained and (b) each Rating Agency has been given prior
      written notice of such transfer. At any time at which no Relevant Entity has
      credit ratings at least equal to the Approved Ratings Threshold, Party A may
      make a Permitted Transfer.” 

     

    
      	 	
              (ii)

            	
              If
                an Eligible Replacement has made a Firm Offer (which remains an offer
                that
                will become legally binding upon acceptance by Party B) to be the
                transferee pursuant to a Permitted Transfer, Party B shall, at Party
                A’s
                written request and at Party A’s expense, take any reasonable steps
                required to be taken by Party B to effect such transfer.
                

            

    

     

    
      	
              (g)

            	
              [Reserved]

            

    

    

    
      	
              (h)

            	
              Timing
                of Payments
                by Party B upon Early Termination.
                Notwithstanding anything to the contrary in Section 6(d)(ii), to
                the
                extent that all or a portion (in either case, the “Unfunded Amount”) of
                any amount that is calculated as being due in respect of any Early
                Termination Date under Section 6(e) from Party B to Party A will
                be paid
                by Party B from amounts other than any upfront payment paid to Party
                B by
                an Eligible Replacement that has entered a Replacement Transaction
                with
                Party B, then such Unfunded Amount shall be due on the next subsequent
                Distribution Date following the date on which the payment would have
                been
                payable as determined in accordance with Section 6(d)(ii), and on
                any
                subsequent Distribution Dates until paid in full (or if such Early
                Termination Date is the final Distribution Date, on such final
                Distribution Date); provided, however, that if the date on which
                the
                payment would have been payable as determined in accordance with
                Section
                6(d)(ii) is a Distribution Date, such payment will be payable on
                such
                Distribution Date.

            

    

    
       

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              (i)

            	
              Rating
                Agency Notifications. Notwithstanding
                any other provision of this Agreement, no Early Termination Date
                shall be
                effectively designated hereunder by Party B and no transfer of any
                rights
                or obligations under this Agreement shall be made by either party
                unless
                each Rating Agency has been given prior written notice of such designation
                or transfer. 

            

    

    

    
      	
              (j)

            	
              No
                Set-off.
                Except as expressly provided for in Section 2(c), Section 6 or Part
                1(f)(i)(D) hereof, and notwithstanding any other provision of this
                Agreement or any other existing or future agreement, each party
                irrevocably waives any and all rights it may have to set off, net,
                recoup
                or otherwise withhold or suspend or condition payment or performance
                of
                any obligation between it and the other party hereunder against any
                obligation between it and the other party under any other agreements.
                Section 6(e) shall be amended by deleting the following sentence:
“The
                amount, if any, payable in respect of an Early Termination Date and
                determined pursuant to this Section will be subject to any
                Set-off.”.

            

    

     

    
      	
              (k)

            	
              Amendment.
                Notwithstanding any provision to the contrary in this Agreement,
                no
                amendment of either this Agreement or any Transaction under this
                Agreement
                shall be permitted by either party unless each of the Rating Agencies
                has
                been provided prior written notice of the
                same.

            

    

    

    
      	
              (l)

            	
              Notice
                of Certain Events or Circumstances.
                Each Party agrees, upon learning of the occurrence or existence of
                any
                event or condition that constitutes (or that with the giving of notice
                or
                passage of time or both would constitute) an Event of Default or
                Termination Event with respect to such party, promptly to give the
                other
                Party and to each Rating Agency notice of such event or condition;
                provided that failure to provide notice of such event or condition
                pursuant to this Part 5(l) shall not constitute an Event of Default
                or a
                Termination Event.

            

    

     

    
      	(m)   	
              Proceedings.
                No
                Relevant Entity shall institute against, or cause any other person
                to
                institute against, or join any other person in instituting against
                Party B
                or the trust formed pursuant to the Pooling and Servicing Agreement,
                in
                any bankruptcy, reorganization, arrangement, insolvency or liquidation
                proceedings or other proceedings under any federal or state bankruptcy
                or
                similar law for a period of one year (or, if longer, the applicable
                preference period) and one day following payment in full of the
                Certificates and any Notes. This provision will survive the termination
                of
                this Agreement. 

            

    

    

    
      	
              (n)

            	
              Trustee
                Liability Limitations.
                It
                is expressly understood and agreed by the parties hereto that (a)
                this
                Agreement is executed by HSBC Bank USA, National Association (“HSBC”)
                not in its individual capacity, but solely as Trustee under the Pooling
                and Servicing Agreement in the exercise of the powers and authority
                conferred and invested in it thereunder; (b) HSBC has been directed
                pursuant to the Pooling and Servicing Agreement to enter into this
                Agreement and to perform its obligations hereunder; (c) each of the
                representations, undertakings and agreements herein made on behalf
                of
                Party B is made and intended not as personal representations of HSBC
                but
                is made and intended for the purpose of binding only Party B; and
                (d)
                under no circumstances shall HSBC
                in its individual capacity be personally liable for any payments
                hereunder
                or for the breach or failure of any obligation, representation, warranty
                or covenant made or undertaken under this
                Agreement.

            

    

    

    
      	
              (o)

            	
              Severability.
                If
                any term, provision, covenant, or condition of this Agreement, or
                the
                application thereof to any party or circumstance, shall be held to
                be
                invalid or unenforceable (in whole or in part) in any respect, the
                remaining terms, provisions, covenants, and conditions hereof shall
                continue in full force and effect as if this Agreement had been executed
                with the invalid or unenforceable portion eliminated, so long as
                this
                Agreement as so modified continues to express, without material change,
                the original intentions of the parties as to the subject matter of
                this
                Agreement and the deletion of such portion of this Agreement will
                not
                substantially impair the respective benefits or expectations of the
                parties; provided, however, that this severability provision shall
                not be
                applicable if any provision of Section 2, 5, 6, or 13 (or any definition
                or provision in Section 14 to the extent it relates to, or is used
                in or
                in connection with any such Section) shall be so held to be invalid
                or
                unenforceable. 

            

    

    

    The
      parties shall endeavor to engage in good faith negotiations to replace any
      invalid or unenforceable term, provision, covenant or condition with a valid
      or
      enforceable term, provision, covenant or condition, the economic effect of
      which
      comes as close as possible to that of the invalid or unenforceable term,
      provision, covenant or condition. 

    
       

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              (p)

            	
              Agent
                for Party B. Party
                A acknowledges that the Depositor has appointed
                the Trustee
                and the Securities Administrator as its agents under the Pooling
                and
                Servicing Agreement to carry out certain functions on behalf of Party
                B,
                and that the Trustee and Securities Administrator shall be entitled
                to
                give notices and to perform and satisfy the obligations of Party
                B
                hereunder on behalf of Party B.

            

    

     

    
      	
              (q)

            	
              Escrow
                Payments.
                If
                (whether by reason of the time difference between the cities in which
                payments are to be made or otherwise) it is not possible for simultaneous
                payments to be made on any date on which both parties are required
                to make
                payments hereunder, either Party may at its option and in its sole
                discretion notify the other Party that payments on that date are
                to be
                made in escrow. In this case deposit of the payment due earlier on
                that
                date shall be made by 2:00 pm (local time at the place for the earlier
                payment) on that date with an escrow agent selected by the notifying
                party, accompanied by irrevocable payment instructions (i) to release
                the
                deposited payment to the intended recipient upon receipt by the escrow
                agent of the required deposit of any corresponding payment payable
                by the
                other party on the same date accompanied by irrevocable payment
                instructions to the same effect or (ii) if the required deposit of
                the
                corresponding payment is not made on that same date, to return the
                payment
                deposited to the party that paid it into escrow. The party that elects
                to
                have payments made in escrow shall pay all costs of the escrow
                arrangements.

            

    

     

    
      	
              (r)

            	
              Consent
                to Recording.
                Each party hereto consents to the monitoring or recording, at any
                time and
                from time to time, by the other party of any and all communications
                between trading, marketing, and operations personnel of the parties
                and
                their Affiliates, waives any further notice of such monitoring or
                recording, and agrees to notify such personnel of such monitoring
                or
                recording. 

            

    

    

    
      	
              (s)

            	
              Waiver
                of Jury Trial.
                Each party waives any right it may have to a trial by jury in respect
                of
                any suit, action or proceeding relating to this Agreement or any
                Credit
                Support Document. 

            

    

    

    
      	
              (t)

            	
              Form
                of ISDA Master Agreement. Party
                A and Party B hereby agree that the text of the body of the ISDA
                Master
                Agreement is intended to be the printed form of the ISDA Master Agreement
                (Multicurrency -
                Crossborder) as published and copyrighted in 1992 by the International
                Swaps and Derivatives Association,
                Inc.

            

    

    

    
      	
              (u)

            	
              Payment
                Instructions.
                Party A hereby agrees that, unless notified in writing by Party B
                of other
                payment instructions, any and all amounts payable by Party A to Party
                B
                under this Agreement shall be paid to the account specified in Item
                4 of
                this Confirmation, below. 

            

    

    

    
      	
              (v)

            	
              Additional
                representations.

            

    

    

    
      	 	
              (i)

            	
              Representations
                of Party A.
                Party A represents to Party B on the date on which Party A enters
                into
                each Transaction that:--

            

    

     

    Party
      A’s
      obligations under this Agreement rank pari passu with all of Party A’s other
      unsecured, unsubordinated obligations except those obligations preferred by
      operation of law.

    

    
      	 	
              (ii)

            	
              Capacity.
                Party A represents to Party B on the date on which Party A enters
                into
                this Agreement that it is entering into the Agreement and the Transaction
                as principal and not as agent of any person. The Trustee represents
                to
                Party A on the date on which the Trustee executes this Agreement
                that it
                is executing the Agreement in its capacity as the Trustee pursuant
                to the
                Pooling and Servicing Agreement.

            

    

     

    
      	
              (w)

            	
              Acknowledgements.

            

    

    

    
      	 	
              (i)

            	
              Substantial
                financial transactions.
                Each party hereto is hereby advised and acknowledges as of the date
                hereof
                that the other party has engaged in (or refrained from engaging in)
                substantial financial transactions and has taken (or refrained from
                taking) other material actions in reliance upon the entry by the
                parties
                into the Transaction being entered into on the terms and conditions
                set
                forth herein and in the Pooling and Servicing Agreement relating
                to such
                Transaction, as applicable. This paragraph shall be deemed repeated
                on the
                trade date of each Transaction.

            

    

    
       

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              (ii)

            	
              Bankruptcy
                Code.
                Subject to Part 5(m), without limiting the applicability if any,
                of any
                other provision of the U.S. Bankruptcy Code as amended (the “Bankruptcy
                Code”) (including without limitation Sections 362, 546, 556, and 560
                thereof and the applicable definitions in Section 101 thereof), the
                parties acknowledge and agree that all Transactions entered into
                hereunder
                will constitute “forward contracts” or “swap agreements” as defined in
                Section 101 of the Bankruptcy Code or “commodity contracts” as defined in
                Section 761 of the Bankruptcy Code, that the rights of the parties
                under
                Section 6 of this Agreement will constitute contractual rights to
                liquidate Transactions, that any margin or collateral provided under
                any
                margin, collateral, security, pledge, or similar agreement related
                hereto
                will constitute a “margin payment” as defined in Section 101 of the
                Bankruptcy Code, and that the parties are entities entitled to the
                rights
                under, and protections afforded by, Sections 362, 546, 556, and 560
                of the
                Bankruptcy Code.

            

    

     

    
      	
              (x)

            	
              Limitation
                on Events of Default.
                Notwithstanding the provisions of Sections 5 and 6, with respect
                to any
                Transaction, if at any time and so long as Party B has satisfied
                in full
                all its payment obligations under Section 2(a)(i) in respect of each
                Transaction hereunder and has at the time no future payment obligations,
                whether absolute or contingent, under such Section in respect of
                such
                Transaction, then unless Party A is required pursuant to appropriate
                proceedings to return to Party B or otherwise returns to Party B
                upon
                demand of Party B any portion of any such payment in respect of such
                Transaction, (a) the occurrence of an event described in Section
                5(a) with
                respect to Party B shall not constitute an Event of Default or Potential
                Event of Default with respect to Party B as Defaulting Party in respect
                of
                such Transaction and (b) Party A shall be entitled to designate an
                Early
                Termination Date pursuant to Section 6 in respect of such Transaction
                only
                as a result of the occurrence of a Termination Event set forth in
                either
                Section 5(b)(i) or 5(b)(ii) with respect to Party A as the Affected
                Party,
                or Section 5(b)(iii) with respect to Party A as the Burdened Party.
                For
                purposes of each Transaction identified by reference number in the
                preceding sentence, Party A acknowledges and agrees that Party B’s only
                payment obligation under Section 2(a)(i) in respect of such Transaction
                is
                to pay the related Fixed Amount on the related Fixed Rate Payer Payment
                Date.

            

    

     

    
      	
              (y)

            	
              [Reserved]

            

    

     

    
      	(z)   	
              Additional
                Definitions. 

            

    

     

    As
      used
      in this Agreement, the following terms shall have the meanings set forth below,
      unless the context clearly requires otherwise: 

     

    “Approved
      Ratings Threshold”
      means
      each of the S&P Approved Ratings Threshold and the Moody’s First Trigger
      Ratings Threshold.

    

    “Approved
      Replacement” means,
      with respect to a Market Quotation, an entity making such Market Quotation,
      which entity would satisfy conditions (a), (b), (c) and (e) of the definition
      of
      Permitted Transfer (as determined by Party B in its sole discretion, acting
      in a
      commercially reasonable manner) if such entity were a Transferee, as defined
      in
      the definition of Permitted Transfer.

    

    “Derivative
      Provider Trigger Event”
      means
      (i) an Event of Default with respect to which Party A is a Defaulting Party,
      (ii) a Termination Event with respect to which Party A is the sole Affected
      Party or (iii) an Additional Termination Event with respect to which Party
      A is
      the sole Affected Party.

    

    “Eligible
      Guarantee”
      means an
      unconditional and irrevocable guarantee of all present and future obligations
      (for the avoidance of doubt, not limited to payment obligations) of Party A
      or
      an Eligible Replacement to Party B under this Agreement that is provided by
      an
      Eligible Guarantor as principal debtor rather than surety and that is directly
      enforceable by Party B, the form and substance of which guarantee are provided
      in advance to Moody’s and S&P, and either (A) a law firm has given a legal
      opinion confirming that none of the guarantor’s payments to Party B under such
      guarantee will be subject to Tax
      collected by withholding or
      (B)
      such guarantee provides that, in the event that any of such guarantor’s payments
      to Party B are subject to Tax collected by withholding, such guarantor is
      required to pay such additional amount as is necessary to ensure that the net
      amount actually received by Party B (free and clear of any Tax collected by
      withholding) will equal the full amount Party B would have received had no
      such
      withholding been required.

    
       

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    “Eligible
      Guarantor” means
      an
      entity that (A) has credit ratings from S&P at least equal to the S&P
      Approved Ratings Threshold and (B) has credit ratings from Moody’s at least
      equal to the Moody’s Second Trigger Ratings Threshold, provided, for the
      avoidance of doubt, that an Eligible Guarantee of an Eligible Guarantor with
      credit ratings below the Moody’s First Trigger Ratings Threshold will not cause
      a Collateral Event (as defined in the Credit Support Annex) not to occur or
      continue with respect to Moody’s. 

    

    “Eligible
      Replacement”
      means an
      entity (A) (i) (a) that has credit ratings from S&P at least equal to the
      S&P Approved Ratings Threshold, and (b) has credit ratings from Moody’s at
      least equal to the Moody’s Second Trigger Ratings Threshold, provided, for the
      avoidance of doubt, that an Eligible Replacement with credit ratings below
      the
      Moody’s First Trigger Ratings Threshold will not cause a Collateral Event (as
      defined in the Credit Support Annex) not to occur or continue with respect
      to
      Moody’s, or (ii) the present and future obligations (for the avoidance of doubt,
      not limited to payment obligations) of which entity to Party B under this
      Agreement are guaranteed pursuant to an Eligible Guarantee and (B) that has
      executed an Item 1115 Agreement with the Depositor.

    

    “Firm
      Offer”
      means
      (A) with respect to an Eligible Replacement, a quotation from such Eligible
      Replacement (i) in an amount equal to the actual amount payable by or to Party
      B
      in consideration of an agreement between Party B and such Eligible Replacement
      to replace Party A as the counterparty to this Agreement by way of novation
      or,
      if such novation is not possible, an agreement between Party B and such Eligible
      Replacement to enter into a Replacement Transaction (assuming that all
      Transactions hereunder become Terminated Transactions), and (ii) that
      constitutes an offer by such Eligible Replacement to replace Party A as the
      counterparty to this Agreement or enter a Replacement Transaction that will
      become legally binding upon such Eligible Replacement upon acceptance by Party
      B, and (B) with respect to an Eligible Guarantor, an offer by such Eligible
      Guarantor to provide an Eligible Guarantee that will become legally binding
      upon
      such Eligible Guarantor upon acceptance by the offeree.

    

    “Moody’s”
      means
      Moody’s Investors Service, Inc., or any successor thereto. 

    

    “Moody’s
      First Trigger Ratings Event” means
      that no Relevant Entity has credit ratings from Moody’s at least equal to the
      Moody’s First Trigger Ratings Threshold. 

    

    “Moody’s
      First Trigger Ratings
      Threshold” means,
      with respect to Party A, the guarantor under an Eligible Guarantee or an
      Eligible Replacement, (i) if such entity has a short-term unsecured and
      unsubordinated debt rating from Moody’s, a long-term unsecured and
      unsubordinated debt rating or counterparty rating from Moody’s of “A2” and a
      short-term unsecured and unsubordinated debt rating from Moody’s of “Prime-1”,
      or (ii) if such entity does not have a short-term unsecured and unsubordinated
      debt rating or counterparty rating from Moody’s, a long-term unsecured and
      unsubordinated debt rating or counterparty rating from Moody’s of
“A1”.

    

    “Moody’s
      Second Trigger Ratings Event” means
      that no
      Relevant Entity has credit ratings from Moody’s at least equal to the Moody’s
      Second Trigger Ratings Threshold. 

    

    “Moody’s
      Second Trigger Ratings Threshold” means,
      with respect to Party A, the guarantor under an Eligible Guarantee or an
      Eligible Replacement, (i) if such entity has a short-term unsecured and
      unsubordinated debt rating from Moody’s, a long-term unsecured and
      unsubordinated debt rating or counterparty rating from Moody’s of “A3” and a
      short-term unsecured and unsubordinated debt rating from Moody’s of “Prime-2”,
      or (ii) if such entity does not have a short-term unsecured and unsubordinated
      debt rating from Moody’s, a long-term unsecured and unsubordinated debt rating
      or counterparty rating from Moody’s of “A3”.

    
       

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    “Permitted
      Transfer” means
      a
      transfer by novation by Party A pursuant to Section 6(b)(ii), Part 5(d), Part
      5(e), or the second sentence of Section 7 (as amended herein) to a transferee
      (the “Transferee”)
      of all,
      but not less than all, of Party A’s rights, liabilities, duties and obligations
      under this Agreement, with
      respect to which transfer each of the following conditions is
      satisfied:
      (a) the
      Transferee is an Eligible Replacement that is a recognized dealer in interest
      rate swaps organized under the laws of the United States of America or a
      jurisdiction located in the United States of America (or another jurisdiction
      reasonably acceptable to Party B), (b) as of the date of such transfer the
      Transferee would not be required to withhold or deduct on account of Tax from
      any payments under this Agreement or would be required to gross up for such
      Tax
      under Section 2(d)(i)(4), (c) an Event of Default or Termination Event would
      not
      occur as a result of such transfer, (d) Party B has consented in writing to
      the
      transfer, such consent not to be unreasonably withheld, (e) the transfer would
      not give rise to a taxable event or any other adverse Tax consequences to Party
      B or its interest holders, as determined by Party B in its sole discretion,
      (f)
      pursuant to a written instrument (the “Transfer
      Agreement”),
      the
      Transferee acquires and assumes all rights and obligations of Party A under
      the
      Agreement and the relevant Transaction, (g) Party B shall have determined,
      in
      its sole discretion, acting in a commercially reasonable manner, that such
      Transfer Agreement is effective to transfer to the Transferee all, but not
      less
      than all, of Party A’s rights and obligations under the Agreement and all
      relevant Transactions; (h) Party A will be responsible for any costs or expenses
      incurred in connection with such transfer (including any replacement cost of
      entering into a replacement transaction); (i) each Rating Agency has been given
      prior written notice of such transfer; and (j) such transfer otherwise complies
      with the terms of the Pooling and Servicing Agreement.

     

    “Rating
      Agencies”
      means,
      with respect to any date of determination, each of S&P and Moody’s, to the
      extent that each such rating agency is then providing a rating for any of the
      ACE Securities Corp. Home Equity Loan Trust, Series 2007-HE4 Asset Backed
      Pass-Through Certificates (the “Certificates”) or any notes backed by the
      Certificates (the “Notes”).

    

    “Relevant
      Entity” means
      Party A and, to the extent applicable, a guarantor under an Eligible
      Guarantee.

    

    “Replacement
      Transaction”
      means,
      with respect to any Terminated Transaction or group of Terminated Transactions,
      a transaction or group of transactions that (i) would have the effect of
      preserving for Party B the economic equivalent of any payment or delivery
      (whether the underlying obligation was absolute or contingent and assuming
      the
      satisfaction of each applicable condition precedent) by the parties under
      Section 2(a)(i) in respect of such Terminated Transaction or group of Terminated
      Transactions that would, but for the occurrence of the relevant Early
      Termination Date, have been required after that Date, and (ii) has terms which
      are substantially the same as this Agreement, including, without limitation,
      rating triggers, Regulation AB compliance, and credit support documentation,
      save for the exclusion of provisions relating to Transactions that are not
      Terminated Transactions, as determined by Party B in its sole discretion, acting
      in a commercially reasonable manner.

    

    “Required
      Ratings Downgrade Event”
      means
      that no Relevant Entity has credit ratings at least equal to the Required
      Ratings Threshold. 

    
       

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    “Required
      Ratings Threshold” means
      each of the S&P Required Ratings Threshold and the Moody’s Second Trigger
      Ratings Threshold.

    

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

    

    “S&P
      Approved Ratings Threshold”
      means,
      with respect to Party A, the guarantor under an Eligible Guarantee or an
      Eligible Replacement, a short-term unsecured and unsubordinated debt rating
      from
      S&P of “A-1”, or, if such entity does not have a short-term unsecured and
      unsubordinated debt rating from S&P, a long-term unsecured and
      unsubordinated debt rating or counterparty rating from S&P of
“A+”.

    

    “S&P
      Required Ratings Threshold”
      means,
      with respect to Party A, the guarantor under an Eligible Guarantee or an
      Eligible Replacement, a long-term unsecured and unsubordinated debt rating
      or
      counterparty rating from S&P of “BBB+”. 

    

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              4.   

            	
              Account
                Details and Settlement
                Information:  

            

    

    

      
        	
                Payments
                  to Party A:

              	
                Account
                  with bank:

              
	 	
                DB
                  Trust Co Americas

              
	 	
                ABA
                  021001033

              
	 	
                BKTRUS33

              
	 	 
	 	
                Beneficiary:

              
	 	
                Deutsche
                  Bank AG New York

              
	 	
                a/c:
                  01473969 

              
	 	
                Global
                  No. N606258N

              
	 	 
	
                Payments
                  to Party B:

              	
                Wells
                  Fargo Bank, N.A.

              
	 	
                ABA
                  # 121000248

              
	 	
                Account
                  Name: Corporate Trust Clearing

              
	 	
                Account
                  # 3970771416

              
	 	
                FFC
                  to: ACE 2007-HE4 Reserve Acct #
                  53147601

              

      

    

     

    This
      Agreement may be executed in several counterparts, each of which shall be deemed
      an original but all of which together shall constitute one and the same
      instrument.

     

    Global
      No. N606258N

    
       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
      

      
        Page 24 of
          26

      

    

     

    We
      are
      very pleased to have executed this Transaction with you and we look forward
      to
      completing other transactions with you in the near future.

    

    Very
      truly yours,

    

    DEUTCSHE
      BANK AG, NEW YORK BRANCH

     

    

    By:
       /s/
      Christopher Flanagan      

     
      Christopher Flanagan 

     
      Authorized Signatory

    

    Party
      B,
      acting through its duly authorized signatory, hereby agrees to, accepts and
      confirms the terms of the foregoing as of the date hereof.

    

    HSBC
      Bank USA, National Association, not in its individual capacity, but solely
      as
      Trustee for the ACE Securities Corp. Home Equity Loan Trust, Series 2007-HE4
      Asset Backed Pass-Through Certificates

    

    By: /s/
      Fernando Acebedo

     Fernando
      Acebedo

     Vice
      President

     

    Global
      No. N606258N

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      
      

      
        Page 25
          of
          26

      

    

    

    SCHEDULE
      I

    (all
      such
      dates subject to adjustment in accordance with the Following Business Day
      Convention with respect to Floating Rate Payer Period End Dates)

    

    
      	
              From
                and including

            	
              To
                but excluding

            	
              Notional
                Amount (USD)

            
	
              Effective
                Date

            	
              5/25/2007

            	
              451,652,331.00

            
	
              5/25/2007

            	
              6/25/2007

            	
              447,524,782.00

            
	
              6/25/2007

            	
              7/25/2007

            	
              442,624,053.00

            
	
              7/25/2007

            	
              8/25/2007

            	
              436,958,460.00

            
	
              8/25/2007

            	
              9/25/2007

            	
              430,540,334.00

            
	
              9/25/2007

            	
              Termination
                Date

            	
              423,387,924.00

            

    

     

    Global
      No. N606258N

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      
      

      
        Page 26
          of
          26

      

    

    Annex
      A

    

    Paragraph
      13 of the Credit Support Annex

     

     

     

     

    Global
      No. N606258N

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      

        ANNEX
          A

        

        ISDA®

        CREDIT
          SUPPORT ANNEX

        to
          the
          Schedule to the

        ISDA
          Master Agreement

        dated
          as
          of April 30, 2007 
          between

        Deutsche
          Bank AG (hereinafter referred to as “Party
          A”
          or
“Pledgor”)

        and

        HSBC
          Bank
          USA, National Association, not in its individual capacity, but solely as
          Trustee
          for the ACE Securities Corp. Home Equity Loan Trust, Series 2007-HE4 Asset
          Backed Pass-Through Certificates
          (hereinafter referred to as “Party
          B”
          or
“Secured
          Party”).

        

        For
          the
          avoidance of doubt, and notwithstanding anything to the contrary that may
          be
          contained in the Agreement, this Credit Support Annex shall relate solely
          to the
          Transaction documented in the Confirmation dated April 30, 2007, between
          Party A
          and Party B, Global No. N606258N.

         

        Paragraph
          13. Elections and Variables.

         

        
          	(a)    	
                  Security
                    Interest for “Obligations”.
                    The term “Obligations”
                    as
                    used in this Annex includes the following additional
                    obligations:

                

        

         

        With
          respect to Party A: not applicable.

         

        With
          respect to Party B: not applicable.

         

        
          	(b)   	
                  Credit
                    Support Obligations.

                

        

         

        
          	
                	(i)	
                  Delivery
                    Amount, Return Amount and Credit Support
                    Amount.

                

        

         

        
          	
                	(A)	
                  “Delivery
                    Amount” has the meaning specified in
                    Paragraph 3(a) as amended (I) by deleting the words “upon a demand made by
                    the Secured Party on or promptly following a Valuation Date” and inserting
                    in lieu thereof the words “not later than the close of business on each
                    Valuation Date” and (II) by deleting in its entirety the sentence
                    beginning “Unless otherwise specified in Paragraph 13” and ending “(ii)
                    the Value as of that Valuation Date of all Posted Credit Support
                    held by
                    the Secured Party.” and inserting in lieu thereof the
                    following:

                

        

         

        The
          “Delivery
          Amount”
          applicable to the Pledgor for any Valuation Date will equal the greatest
          of

         

        
          	 	
                  (1)
                    

                	
                  the
                    amount by which (a) the S&P Credit Support Amount for such Valuation
                    Date exceeds (b) the S&P Value as of such Valuation Date of all Posted
                    Credit Support held by the Secured Party,

                

        

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        
Global No. N606258N
         

        
          	 	
                  (2)
                    

                	
                  the
                    amount by which (a) the Moody’s First Trigger Credit Support Amount for
                    such Valuation Date exceeds (b) the Moody’s First Trigger Value as of such
                    Valuation Date of all Posted Credit Support held by the Secured
                    Party,
                    and

                

        

         

        
          	 	
                  (3)
                    

                	
                  the
                    amount by which (a) the Moody’s Second Trigger Credit Support Amount for
                    such Valuation Date exceeds (b) the Moody’s Second Trigger Value as of
                    such Valuation Date of all Posted Credit Support held by the
                    Secured
                    Party.

                

        

         

        
          	
                	(B)	
                  “Return
                    Amount” has the meaning specified in Paragraph 3(b) as
                    amended by deleting in its entirety the sentence beginning “Unless
                    otherwise specified in Paragraph 13” and ending “(ii) the Credit Support
                    Amount.” and inserting in lieu thereof the
                    following:

                

        

         

        The
          “Return
          Amount”
          applicable to the Secured Party for any Valuation Date will equal the least
          of

         

        
          	 	
                  (1)
                    

                	
                  the
                    amount by which (a) the S&P Value as of such Valuation Date of all
                    Posted Credit Support held by the Secured Party exceeds (b) the
                    S&P
                    Credit Support Amount for such Valuation Date,

                

        

         

        
          	 	
                  (2)
                    

                	
                  the
                    amount by which (a) the Moody’s First Trigger Value as of such Valuation
                    Date of all Posted Credit Support held by the Secured Party exceeds
                    (b)
                    the Moody’s First Trigger Credit Support Amount for such Valuation Date,
                    and

                

        

         

        
          	 	
                  (3)
                    

                	
                  the
                    amount by which (a) the Moody’s Second Trigger Value as of such Valuation
                    Date of all Posted Credit Support held by the Secured Party exceeds
                    (b)
                    the Moody’s Second Trigger Credit Support Amount for such Valuation
                    Date.

                

        

         

        
          	
                	(C)	
                  “Credit
                    Support Amount” shall not apply. For purposes of calculating
                    any Delivery Amount or Return Amount for any Valuation Date,
                    reference
                    shall be made to the S&P Credit Support Amount, the Moody’s First
                    Trigger Credit Support Amount, or the Moody’s Second Trigger Credit
                    Support Amount, in each case for such Valuation Date, as provided
                    in
                    Paragraphs 13(b)(i)(A) and 13(b)(i)(B),
                    above.

                

        

         

        
          	
                	(ii)	
                  Eligible
                    Collateral.
                    

                

        

         

        On
          any
          date, the following items will qualify as “Eligible
          Collateral”
(for
          the avoidance of doubt, all Eligible Collateral to be denominated in
          USD):

         

        
          
            
            

          

          
            2

            
              

            

          

          
            
            

          

        
Global No. N606258N
         

        
          	
                   

                   

                  Collateral
                    

                	 	
                  S&P

                  Valuation
                    

                  Percentage

                	 	
                  Moody’s
                    

                  First
                    Trigger Valuation
                    Percentage

                	 	
                  Moody’s
                    

                  Second
                    Trigger Valuation
                    Percentage

                	 
	 	 	 	 	 	 	 	 	 	 	 
	
                  (A)  Cash

                	 	 	
                  100

                	
                  %

                	 	
                  100

                	
                  %

                	 	
                  100

                	
                  %

                
	 	 	 	 	 	 	 	 	 	 	 
	
                  (B)  Fixed-rate
                    negotiable debt obligations issued by the U.S. Treasury Department
                    having
                    a remaining maturity on such date of not more than one
                    year

                	 	 	
                  98.5

                	
                  %

                	 	
                  100

                	
                  %

                	 	
                  100

                	
                  %

                
	 	 	 	 	 	 	 	 	 	 	 
	
                  (C)  Fixed-rate
                    negotiable debt obligations issued by the U.S. Treasury Department
                    having
                    a remaining maturity on such date of more than one year but not
                    more than
                    ten years

                	 	 	
                  89.9

                	
                  %

                	 	
                  100

                	
                  %

                	 	
                  94

                	
                  %

                
	 	 	 	 	 	 	 	 	 	 	 
	
                  (D)  Fixed-rate
                    negotiable debt obligations issued by the U.S. Treasury Department
                    having
                    a remaining maturity on such date of more than ten years

                	 	 	
                  83.9

                	
                  %

                	 	
                  100

                	
                  %

                	 	
                  87

                	
                  %

                

        

         

        
          	
                	(iii)	
                  Other
                    Eligible Support. 

                

        

         

        The
          following items will qualify as “Other
          Eligible Support”
          for the
          party specified: 

         

        Not
          applicable.

         

        
          	
                	(iv)	
                  Threshold.

                

        

         

        
          	
                	(A)	
                  “Independent
                    Amount”
                    means zero with respect to Party A and Party
                    B.

                

        

         

        
          	
                	(B)	
                  “Threshold”
                    means, with respect to Party A and any Valuation Date, zero if
                    (i) a
                    Collateral Event has occurred and has been continuing (x) for
                    at least 30
                    days or (y) since this Annex was executed, or (ii) a Required
                    Ratings
                    Downgrade Event has occurred and is continuing; otherwise,
                    infinity.

                

        

         

        
          
            “Threshold”
              means,
              with respect to Party B and any Valuation Date,
              infinity.

          

        

         

        
          	
                	(C)	
                  “Minimum
                    Transfer Amount” means
                    USD 100,000 with respect to Party A and Party B; provided, however,
                    that
                    if the aggregate Certificate Principal Balance of the Certificates
                    and the
                    aggregate principal balance of any Notes rated by S&P is at the time
                    of any transfer less than USD 50,000,000, the “Minimum
                    Transfer Amount”
                    shall be USD 50,000.

                

        

         

        
          
            
            

          

          
            3

            
              

            

          

          
            
            

          

        
Global No. N606258N
         

        
          	
                	(D)	
                  Rounding:
                    The Delivery Amount will be rounded up to the nearest integral
                    multiple of
                    USD 10,000. The Return Amount will be rounded down to the nearest
                    integral
                    multiple of USD 10,000.

                

        

         

        
          	(c)   	
                  Valuation
                    and Timing.

                

        

         

        
          	
                	(i)	
                  “Valuation
                    Agent”
                    means Party A; provided, however, that if an Event of Default
                    shall have
                    occurred with respect to which Party A is the Defaulting Party,
                    Party B
                    shall have the right to designate as Valuation Agent an independent
                    party,
                    reasonably acceptable to Party A, the cost for which shall be
                    borne by
                    Party A. All calculations by the Valuation Agent must be made
                    in
                    accordance with standard market practice, including, in the event
                    of a
                    dispute as to the Value of any Eligible Credit Support or Posted
                    Credit
                    Support, by making reference to quotations received by the Valuation
                    Agent
                    from one or more Pricing Sources.

                

        

         

        
          	
                	(ii)	
                  “Valuation
                    Date” means
                    the first Local Business Day in each week on which any of the
                    S&P
                    Credit Support Amount, the Moody’s First Trigger Credit Support Amount or
                    the Moody’s Second Trigger Credit Support Amount is greater than
                    zero.

                

        

         

        
          	
                	(iii)	
                  “Valuation
                    Time” means
                    the close of business in the city of the Valuation Agent on the
                    Local
                    Business Day immediately preceding the Valuation Date or date
                    of
                    calculation, as applicable; provided
                    that the calculations of Value and Exposure will be made as of
                    approximately the same time on the same date.

                

        

         

        
          	
                	(iv)	
                  “Notification
                    Time” means
                    11:00 a.m., New York time, on a Local Business Day.
                    

                

        

         

        
          	
                	(v)	
                  External
                    Verification.
                    Notwithstanding anything to the contrary in the definitions of
                    Valuation
                    Agent or Valuation Date, at any time at which Party A (or, to
                    the extent
                    applicable, its Credit Support Provider) does not have a long-term
                    unsubordinated and unsecured debt rating of at least “BBB+” from S&P,
                    the Valuation Agent shall (A) calculate the Secured Party’s Exposure and
                    the S&P Value of Posted Credit Support on each Valuation Date based
                    on
                    internal marks and (B) verify such calculations with external
                    marks
                    monthly by obtaining on the last Local Business Day of each calendar
                    month
                    two external marks for each Transaction to which this Annex relates
                    and
                    for all Posted Credit Support; such verification of the Secured
                    Party’s
                    Exposure shall be based on the higher of the two external marks.
                    Each
                    external mark in respect of a Transaction shall be obtained from
                    an
                    independent Reference Market-maker that would be eligible and
                    willing to
                    enter into such Transaction in the absence of the current derivative
                    provider, provided that an external mark may not be obtained
                    from the same
                    Reference Market-maker more than four times in any 12-month period.
                    The
                    Valuation Agent shall obtain these external marks directly or
                    through an
                    independent third party, in either case at no cost to Party B.
                    The
                    Valuation Agent shall calculate on each Valuation Date (for purposes
                    of
                    this paragraph, the last Local Business Day in each calendar
                    month
                    referred to above shall be considered a Valuation Date) the Secured
                    Party’s Exposure based on the greater of the Valuation Agent’s internal
                    marks and the external marks received. If the S&P Value on any such
                    Valuation Date of all Posted Credit Support then held by the
                    Secured Party
                    is less than the S&P Credit Support Amount on such Valuation Date (in
                    each case as determined pursuant to this paragraph), Party A
                    shall, within
                    three Local Business Days of such Valuation Date, Transfer to
                    the Secured
                    Party Eligible Credit Support having an S&P Value as of the date of
                    Transfer at least equal to such deficiency.

                

        

         

        
          	
                	(vi)	
                  Notice
                    to S&P.
                    At
                    any time at which Party A (or, to the extent applicable, its
                    Credit
                    Support Provider) does not have a long-term unsubordinated and
                    unsecured
                    debt rating of at least “BBB+” from S&P, the Valuation Agent shall
                    provide to S&P not later than the Notification Time on the Local
                    Business Day following each Valuation Date its calculations of
                    the Secured
                    Party’s Exposure and the S&P Value of any Eligible Credit Support or
                    Posted Credit Support for that Valuation Date. The Valuation
                    Agent shall
                    also provide to S&P any external marks received pursuant to the
                    preceding paragraph.

                

        

         

        
          
            
            

          

          
            4

            
              

            

          

          
            
            

          

        
Global No. N606258N
         

        
          	(d)   	
                  Conditions
                    Precedent and Secured Party’s Rights and
                    Remedies.
                    The following Termination Events will be a “Specified
                    Condition”
                    for the party specified (that party being the Affected Party
                    if the
                    Termination Event occurs with respect to that party): With respect
                    to
                    Party A: any Additional Termination Event with respect to which
                    Party A is
                    the sole Affected Party. With respect to Party B:
                    None.

                

        

         

        
          	(e)   	
                  Substitution.

                

        

         

        
          	
                	(i)
                   	
                  “Substitution
                    Date”
                    has the meaning specified in Paragraph
                    4(d)(ii).

                

        

         

        
          	
                	(ii)   	
                  Consent.
                    If
                    specified here as applicable, then the Pledgor must obtain the
                    Secured
                    Party’s consent for any substitution pursuant to Paragraph 4(d):
                    Inapplicable.

                

        

         

        
          	(f)   	
                  Dispute
                    Resolution.

                

        

         

        
          	
                	(i)	
                  “Resolution
                    Time”
                    means 1:00 p.m. New York time on the Local Business Day following
                    the date
                    on which the notice of the dispute is given under Paragraph
                    5.

                

        

         

        
          	
                	(ii)	
                  Value.
                    Notwithstanding anything to the contrary in Paragraph 12, for
                    the purpose
                    of Paragraphs 5(i)(C) and 5(ii), the S&P Value, Moody’s First Trigger
                    Value, and Moody’s Second Trigger Value, on any date, of Eligible
                    Collateral other than Cash will be calculated as follows:
                    

                

        

         

        For
          Eligible Collateral in the form of securities listed in Paragraph 13(b)(ii):
          the
          sum of (A) the product of (1)(x) the bid price at the Valuation Time for
          such
          securities on the principal national securities exchange on which such
          securities are listed, or (y) if such securities are not listed on a national
          securities exchange, the bid price for such securities quoted at the Valuation
          Time by any principal market maker for such securities selected by the
          Valuation
          Agent, or (z) if no such bid price is listed or quoted for such date, the
          bid
          price listed or quoted (as the case may be) at the Valuation Time for the
          day
          next preceding such date on which such prices were available and (2) the
          applicable Valuation Percentage for such Eligible Collateral, and (B) the
          accrued interest on such securities (except to the extent Transferred to
          the
          Pledgor pursuant to Paragraph 6(d)(ii) or included in the applicable price
          referred to in the immediately preceding clause (A)) as of such
          date.

         

        
          	
                	(iii)	
                  Alternative.
                    The provisions of Paragraph 5 will
                    apply.

                

        

         

        
          	(g)   	
                  Holding
                    and Using Posted
                    Collateral.

                

        

         

        
          	
                	(i)	
                  Eligibility
                    to Hold Posted Collateral; Custodians.  Party
                    B (or any Custodian) will be entitled to hold Posted Collateral
                    pursuant
                    to Paragraph 6(b). 

                

        

         

        Party
          B
          may appoint as Custodian (A) the entity then serving as Securities Administrator
          or (B) any entity other than the entity then serving as Securities Administrator
          if such other entity (or, to the extent applicable, its parent company
          or credit
          support provider) shall then have a short-term unsecured and unsubordinated
          debt
          rating from S&P of at least “A-1.”

         

        
          
            
            

          

          
            5

            
              

            

          

          
            
            

          

        
Global No. N606258N
         

        Initially,
          the Custodian
          for
          Party B is: Securities Administrator

         

        
          	
                	(ii)	
                  Use
                    of Posted Collateral. The
                    provisions of Paragraph 6(c)(i) will not apply to Party B, but
                    the
                    provisions of Paragraph 6(c)(ii) will apply to Party B or its
                    Custodian.
                    Posted
                    Collateral in the form of Cash shall be invested in such overnight
                    (or
                    redeemable within two Local Business Days of demand) Permitted
                    Investments
                    rated at least (x) AAAm or AAAm-G by S&P and (y) Prime-1 by Moody’s or
                    Aaa by Moody’s, as directed by Party A (unless (x) an Event of Default or
                    an Additional Termination Event has occurred with respect to
                    which Party A
                    is the defaulting or sole Affected Party or (y) an Early Termination
                    Date
                    has been designated, in which case such Posted Collateral shall
                    be held
                    uninvested). Gains and losses incurred in respect of any investment
                    of
                    Posted Collateral in the form of Cash in Permitted Investments
                    as directed
                    by Party A shall be for the account of Party A. If no investment
                    direction
                    is received, the Posted Collateral in the form of Cash shall
                    be held
                    uninvested. 

                

        

         

        
          	(h)   	
                  Distributions
                    and Interest Amount.

                

        

         

        
          	
                	(i)	
                  Interest
                    Rate.
                    The “Interest
                    Rate”
                    will be the actual interest rate earned on Posted Collateral
                    in the form
                    of Cash that is held by Party B or its
                    Custodian.

                

        

         

        
          	
                	(ii)	
                  Transfer
                    of Interest Amount.
                    The Transfer of the Interest Amount will be made on the second
                    Local
                    Business Day following the end of each calendar month and on
                    any other
                    Local Business Day on which Posted Collateral in the form of
                    Cash is
                    Transferred to the Pledgor pursuant to Paragraph 3(b); provided,
                    however,
                    that the obligation of Party B to Transfer any Interest Amount
                    to Party A
                    shall be limited to the extent that Party B has earned and received
                    such
                    funds and such funds are available to Party B.

                

        

         

        
          	
                	(iii)	
                  Alternative
                    to Interest Amount.
                    The provisions of Paragraph 6(d)(ii) will
                    apply.

                

        

         

        
          	(i)    	
                  Additional
                    Representation(s).
                    There are no additional representations by either
                    party.

                

        

         

        
          	(j)    	
                  Other
                    Eligible Support and Other Posted Support.

                

        

         

        
          	
                	(i)	
                  “Value”
                    with respect to Other Eligible Support and Other Posted Support
                    means: not
                    applicable. 

                

        

         

        
          	
                	(ii)	
                  “Transfer”
                    with respect to Other Eligible Support and Other Posted Support
                    means: not
                    applicable.

                

        

         

        
          	(k)   	
                  Demands
                    and Notices.All
                    demands, specifications and notices under this Annex will be
                    made pursuant
                    to the Notices Section of this Agreement, except that any demand,
                    specification or notice shall be given to or made at the following
                    addresses, or at such other address as the relevant party may
                    from time to
                    time designate by giving notice (in accordance with the terms
                    of this
                    paragraph) to the other party:

                

        

         

        If
          to
          Party A, at the address specified pursuant to the Notices Section of this
          Agreement.

         

        If
          to
          Party B, at the address specified pursuant to the Notices Section of this
          Agreement.

         

        If
          to
          Party B’s Custodian: 

         

        Address:  Wells
          Fargo Bank, N.A.

        9062
          Old
          Annapolis Road

        Columbia,
          MD 21045 

         

        
          
            
            

          

          
            6

            
              

            

          

          
            
            

          

        
Global No. N606258N
         

        Attention:  
          Client
          Manager Ace 2007-HE4

        Tel:  410-884-2000

        Fax:  410-715-2380

        

        
          	
                	(l)	
                  Address
                    for Transfers.
                    Each Transfer hereunder shall be made to the address specified
                    below or to
                    an address specified in writing from time to time by the party
                    to which
                    such Transfer will be made.

                

        

         

        Party
          A
          account details for holding collateral: to be provided by Party A in
          writing.

         

        Party
          B’s
          Custodian account details for holding collateral:

         

        Wells
          Fargo Bank, N.A.

        ABA
          #
          121000248

        Account
          Name: Corporate Trust Clearing

        Account
          #
          3970771416

        FFC
          to:
          ACE 2007-HE4 Cap Collateral Account # 53147605

        

        
          	(m)   	
                  Other
                    Provisions.

                

        

         

        
          	
                	(i)	
                  Collateral
                    Account.
                    Party B shall open and maintain a segregated account, which shall
                    be an
                    Eligible Account, and hold, record and identify all Posted Collateral
                    in
                    such segregated account, in accordance with the Pooling and Servicing
                    Agreement. 

                

        

         

        
          	
                	(ii)	
                  Agreement
                    as to Single Secured Party and Single Pledgor.
                    Party A and Party B hereby agree that, notwithstanding anything
                    to the
                    contrary in this Annex, (a) the term “Secured Party” as used in this Annex
                    means only Party B, (b) the term “Pledgor” as used in this Annex means
                    only Party A, (c) only Party A makes the pledge and grant in
                    Paragraph 2,
                    the acknowledgement in the final sentence of Paragraph 8(a) and
                    the
                    representations in Paragraph 9.

                

        

         

        
          	
                	(iii)	
                  Calculation
                    of Value.
                    Paragraph 4(c) is hereby amended by deleting the word “Value” and
                    inserting in lieu thereof “S&P Value, Moody’s First Trigger Value,
                    Moody’s Second Trigger Value”. Paragraph 4(d)(ii) is hereby amended by (A)
                    deleting the words “a Value” and inserting in lieu thereof “an S&P
                    Value, Moody’s First Trigger Value, and Moody’s Second Trigger Value” and
                    (B) deleting the words “the Value” and inserting in lieu thereof “S&P
                    Value, Moody’s First Trigger Value, and Moody’s Second Trigger Value”.
                    Paragraph 5 (flush language) is hereby amended by deleting the
                    word
                    “Value” and inserting in lieu thereof “S&P Value, Moody’s First
                    Trigger Value, or Moody’s Second Trigger Value”. Paragraph 5(i) (flush
                    language) is hereby amended by deleting the word “Value” and inserting in
                    lieu thereof “S&P Value, Moody’s First Trigger Value, and Moody’s
                    Second Trigger Value”. Paragraph 5(i)(C) is hereby amended by deleting the
                    word “the Value, if” and inserting in lieu thereof “any one or more of the
                    S&P Value, Moody’s First Trigger Value, or Moody’s Second Trigger
                    Value, as may be”. Paragraph 5(ii) is hereby amended by (1) deleting the
                    first instance of the words “the Value” and inserting in lieu thereof “any
                    one or more of the S&P Value, Moody’s First Trigger Value, or Moody’s
                    Second Trigger Value” and (2) deleting the second instance of the words
                    “the Value” and inserting in lieu thereof “such disputed S&P Value,
                    Moody’s First Trigger Value, or Moody’s Second Trigger Value”. Each of
                    Paragraph 8(b)(iv)(B) and Paragraph 11(a) is hereby amended by
                    deleting
                    the word “Value” and inserting in lieu thereof “least of the S&P
                    Value, Moody’s First Trigger Value, and Moody’s Second Trigger Value”.
                    

                

        

         

        
          	
                	(iv)	
                  Form
                    of Annex. Party
                    A and Party B hereby agree that the text of Paragraphs 1 through
                    12,
                    inclusive, of this Annex is intended to be the printed form of
                    ISDA Credit
                    Support Annex (Bilateral Form - ISDA Agreements Subject to New
                    York Law
                    Only version) as published and copyrighted in 1994 by the International
                    Swaps and Derivatives Association,
                    Inc.

                

        

         

        
          
            
            

          

          
            7

            
              

            

          

          
            
            

          

        
Global No. N606258N
         

        
          	
                	(v)	
                  Events
                    of Default.
                    Paragraph 7 will not apply to cause any Event of Default to exist
                    with
                    respect to Party B except that Paragraph 7(i) will apply to Party
                    B solely
                    in respect of Party B’s obligations under Paragraph 3(b) of the Credit
                    Support Annex. Notwithstanding anything to the contrary in Paragraph
                    7,
                    any failure by Party A to comply with or perform any obligation
                    to be
                    complied with or performed by Party A under the Credit Support
                    Annex shall
                    only be an Event of Default if (A) Required
                    Ratings Downgrade Event has occurred and been continuing for
                    30 or more
                    Local Business Days, and (B) such failure is not remedied on
                    or before the
                    third Local Business Day after notice of such failure is given
                    to Party
                    A.

                

        

         

        
          	
                	(vi)	
                  Expenses.
                    Notwithstanding anything to the contrary in Paragraph 10, the
                    Pledgor will
                    be responsible for, and will reimburse the Secured Party for,
                    all transfer
                    and other taxes and other costs involved in any Transfer of Eligible
                    Collateral.

                

        

         

        
          	
                	(vii)	
                  Withholding.
                    Paragraph 6(d)(ii) is hereby amended by inserting immediately
                    after “the
                    Interest Amount” in the fourth line thereof the words “less any applicable
                    withholding taxes.”

                

        

         

        
          	
                	(viii)	
                  Additional
                    Definitions.
                    As used in this Annex:

                

        

         

        “Collateral
          Event” means
          that no Relevant Entity has credit ratings at least equal to the Approved
          Ratings Threshold.

         

        “Exposure”
          has the
          meaning specified in Paragraph 12, except that after the word “Agreement” the
          words “(assuming, for this purpose only, that Part 1(f) of the Schedule is
          deleted)” shall be inserted. 

         

        “Local
          Business Day”
means
          for purposes of this Annex: any day on which (A) commercial banks are open
          for
          business (including dealings in foreign exchange and foreign currency deposits)
          in New York and the location of Party A, Party B and any Custodian, and
          (B) in
          relation to a Transfer of Eligible Collateral, any day on which the clearance
          system agreed between the parties for the delivery of Eligible Collateral
          is
          open for acceptance and execution of settlement instructions (or in the
          case of
          a Transfer of Cash or other Eligible Collateral for which delivery is
          contemplated by other means a day on which commercial banks are open for
          business (including dealings in foreign exchange and foreign deposits)
          in New
          York and the location of Party A, Party B and any Custodian. 

         

        “Moody’s
          First Trigger Credit Support Amount” means,
          for any Valuation Date, the excess, if any, of

         

        
          	 	
                  (I)

                	
                  (A)

                	
                  for
                    any Valuation Date on which (I) a Moody’s First Trigger Ratings Event has
                    occurred and has been continuing (x) for at least 30 Local Business
                    Days
                    or (y) since this Annex was executed and (II) it is not the case
                    that a
                    Moody’s Second Trigger Ratings Event has occurred and been continuing
                    for
                    at least 30 Local Business Days, an amount equal to the greater
                    of (a)
                    zero and (b) the sum of (i) the Secured Party’s Exposure for such
                    Valuation Date and (ii) the sum, for each Transaction to which
                    this Annex
                    relates, of the product of (i) the applicable Moody’s First Trigger Factor
                    set forth in Table 1, (ii) the Scale Factor, if any, for such
                    Transaction,
                    or, if no Scale Factor is applicable for such Transaction, one,
                    (iii) the
                    Notional Amount for such Transaction for the Calculation Period
                    for such
                    Transaction (each as defined in the related Confirmation) which
                    includes
                    such Valuation Date; or 

                

        

         

        
          
            
            

          

          
            8

            
              

            

          

          
            
            

          

        
Global No. N606258N
         

        
          	 	
                  (B)

                	
                  for
                    any other Valuation Date, zero,
                    over

                

        

         

        
          	
                	(II)	
                  the
                    Threshold for Party A such Valuation
                    Date.

                

        

         

        “Moody’s
          First Trigger Value”
          means,
          on any date and with respect to any Eligible Collateral other than Cash,
          the bid
          price obtained by the Valuation Agent multiplied by the Moody’s First Trigger
          Valuation Percentage for such Eligible Collateral set forth in Paragraph
          13(b)(ii).

         

        “Moody’s
          Second Trigger Event” means
          that no Relevant Entity has credit ratings from Moody’s at least equal to the
          Moody’s Second Trigger Ratings Threshold.

         

        “Moody’s
          Second Trigger Credit Support Amount”
          means,
          for any Valuation Date, the excess, if any, of

         

        
          	 	
                  (I)

                	
                  (A)

                	
                  for
                    any Valuation Date on which it is the case that a Moody’s Second Trigger
                    Ratings Event has occurred and been continuing for at least 30
                    Local
                    Business Days, an amount equal to the greatest of (a) zero, (b)
                    the
                    aggregate amount of the next payment due to be paid by Party
                    A under each
                    Transaction to which this Annex relates, and (c) the sum of (x)
                    the
                    Secured Party’s Exposure for such Valuation Date and (y) the sum, for each
                    Transaction to which this Annex relates, of

                

        

         

        (1)
          if
          such Transaction is not a Transaction-Specific Hedge, the product of (i)
          the
          applicable Moody’s Second Trigger Factor set forth in Table 2, (ii) the Scale
          Factor, if any, for such Transaction, or, if no Scale Factor is applicable
          for
          such Transaction, one, and (iii) the Notional Amount for such Transaction
          for
          the Calculation Period for such Transaction (each as defined in the related
          Confirmation) which includes such Valuation Date;
          or

         

        (2)
          if
          such Transaction is a Transaction-Specific Hedge, the product of (i) the
          applicable Moody’s Second Trigger Factor set forth in Table 3, (ii) the Scale
          Factor, if any, for such Transaction, or, if no Scale Factor is applicable
          for
          such Transaction, one, and (iii) the Notional Amount for such Transaction
          for
          the Calculation Period which includes such Valuation Date; or 

         

        
          	 	
                  (B)

                	
                  for
                    any other Valuation Date, zero,
                    over

                

        

         

        
          	
                	(II)	
                  the
                    Threshold for Party A for such Valuation
                    Date.

                

        

         

        “Moody’s
          Second Trigger Value”
          means,
          on any date and with respect to any Eligible Collateral other than Cash,
          the bid
          price obtained by the Valuation Agent multiplied by the Moody’s Second Trigger
          Valuation Percentage for such Eligible Collateral set forth in Paragraph
          13(b)(ii).

         

        “Next
          Payment”
          means,
          in respect of each Next Payment Date, the greater of (i) the amount of
          any
          payments due to be made by Party A under Section 2(a) on such Next Payment
          Date
          less any payments due to be made by Party B under Section 2(a) on such
          Next
          Payment Date (in each case, after giving effect to any applicable netting
          under
          Section 2(c)) and (ii) zero.

         

        
          
            
            

          

          
            9

            
              

            

          

          
            
            

          

        
Global No. N606258N
         

        “Next
          Payment Date”
          means
          each date on which the next scheduled payment under any Transaction is
          due to be
          paid.

         

        “Pricing
          Sources”
          means
          the sources of financial information commonly known as Bloomberg, Bridge
          Information Services, Data Resources Inc., Interactive Data Services,
          International Securities Market Association, Merrill Lynch Securities Pricing
          Service, Muller Data Corporation, Reuters, Wood Gundy, Trepp Pricing, JJ
          Kenny,
          S&P and Telerate.

         

        “Remaining
          Weighted Average Maturity” means,
          with respect to a Transaction, the expected weighted average maturity for
          such
          Transaction as determined by the Valuation Agent.

        

        “S&P
          Approved Ratings Downgrade Event”
          means
          that no Relevant Entity has credit ratings at least equal to the S&P
          Approved Ratings Threshold.

         

        “S&P
          Credit Support Amount”
          means,
          for any Valuation Date, the excess, if any, of

         

        
          	 	
                  (I)

                	
                  (A)
                    

                	
                  for
                    any Valuation Date on which (i) an S&P Required Ratings Downgrade
                    Event, has occurred and been continuing for at least 30 days,
                    or (ii) a
                    S&P Required Ratings Downgrade Event has occurred and is continuing,
                    an amount equal to the sum of (1) 100.0% of the Secured Party’s Exposure
                    for such Valuation Date and (2) the sum, for each Transaction
                    to which
                    this Annex relates, of the product of (i) the Volatility Buffer
                    for such
                    Transaction, (ii) the Scale Factor, if any, for such Transaction,
                    or, if
                    no Scale Factor is applicable for such Transaction, one, and
                    (iii) the
                    Notional Amount of such Transaction for the Calculation Period
                    of such
                    Transaction (each as defined in the related Confirmation) which
                    includes
                    such Valuation Date, or 

                

        

         

        
          	 	
                  (B)

                	
                  for
                    any other Valuation Date, zero,
                    over

                

        

         

        
          	
                	(II)	
                  the
                    Threshold for Party A for such Valuation
                    Date.

                

        

         

        “S&P
          Required Ratings Downgrade Event”
          means
          that on any date, no Relevant Entity has credit ratings at least equal
          to the
          S&P Required Ratings Threshold.

         

        “S&P
          Value”
          means,
          on any date and with respect to any Eligible Collateral other than Cash,
          the
          product of (A) the bid price obtained by the Valuation Agent for such Eligible
          Collateral and (B) the S&P Valuation Percentage for such Eligible Collateral
          set forth in paragraph 13(b)(ii).

         

        “Transaction
          Exposure”
          means,
          for any Transaction, Exposure determined as if such Transaction were the
          only
          Transaction between the Secured Party and the Pledgor.

         

        “Transaction-Specific
          Hedge” means
          any
          Transaction that is (i) an interest rate swap in respect of which (x) the
          notional amount of the interest rate swap is “balance guaranteed” or (y) the
          notional amount of the interest rate swap for any Calculation Period (as
          defined
          in the related Confirmation) otherwise is not a specific dollar amount
          that is
          fixed at the inception of the Transaction, (ii) an interest rate cap, (iii)
          an
          interest rate floor or (iv) an interest rate swaption.

         

        “Valuation
          Percentage”
          shall
          mean, for purposes of determining the S&P Value, Moody’s First Trigger
          Value, or Moody’s Second Trigger Value with respect to any Eligible Collateral
          or Posted Collateral, the applicable S&P Valuation Percentage, Moody’s First
          Trigger Valuation Percentage, or Moody’s Second Trigger Valuation Percentage for
          such Eligible Collateral or Posted Collateral, respectively, in each case
          as set
          forth in Paragraph 13(b)(ii).

         

        
          
            
            

          

          
            10

            
              

            

          

          
            
            

          

        
Global No. N606258N
         

        “Value”
          shall
          mean, in respect of any date, the related S&P Value, the related Moody’s
          First Trigger Value, and the related Moody’s Second Trigger Value.

         

        “Volatility
          Buffer”
          means,
          for any Transaction, the related percentage set forth in the following
          table.

         

        
          	
                  The
                    higher of the S&P credit rating of (i) Party A and (ii) the Credit
                    Support Provider of Party A, if applicable

                	
                  Remaining
                    Weighted Average Maturity of such Transaction 

                  up
                    to 3 years

                	
                  Remaining
                    Weighted Average Maturity of such Transaction

                  up
                    to 5 years

                	
                  Remaining
                    Weighted Average Maturity of such Transaction

                  up
                    to 10 years

                	
                  Remaining
                    Weighted Average Maturity of such Transaction

                  up
                    to 30 years

                
	
                  “A-2”
                    or higher 

                	
                  2.75%

                	
                  3.25%

                	
                  4.00%

                	
                  4.75%

                
	
                  “A-3”

                	
                  3.25%

                	
                  4.00%

                	
                  5.00%

                	
                  6.25%

                
	
                  “BB+”
                    or
                    lower

                	
                  3.50%

                	
                  4.50%

                	
                  6.75%

                	
                  7.50%

                

        

         

         

        

         

        [Remainder
          of this page intentionally left blank]

         

        
          
            
            

          

          
            11

            
              

            

          

          
            
            

          
Global
          No. N606258N
           

        

        Table
          1

         

        Moody’s
          First Trigger Factor

         

        
          	
                  Remaining

                  Weighted
                    Average Life 

                  of
                    Hedge in Years

                	
                  Weekly

                  Collateral

                  Posting

                
	
                  1
                    or less

                	
                  0.25%

                
	
                  More
                    than 1 but not more than 2

                	
                  0.50%

                
	
                  More
                    than 2 but not more than 3

                	
                  0.70%

                
	
                  More
                    than 3 but not more than 4

                	
                  1.00%

                
	
                  More
                    than 4 but not more than 5

                	
                  1.20%

                
	
                  More
                    than 5 but not more than 6

                	
                  1.40%

                
	
                  More
                    than 6 but not more than 7

                	
                  1.60%

                
	
                  More
                    than 7 but not more than 8

                	
                  1.80%

                
	
                  More
                    than 8 but not more than 9

                	
                  2.00%

                
	
                  More
                    than 9 but not more than 10

                	
                  2.20%

                
	
                  More
                    than 10 but not more than 11

                	
                  2.30%

                
	
                  More
                    than 11 but not more than 12

                	
                  2.50%

                
	
                  More
                    than 12 but not more than 13

                	
                  2.70%

                
	
                  More
                    than 13 but not more than 14

                	
                  2.80%

                
	
                  More
                    than 14 but not more than 15

                	
                  3.00%

                
	
                  More
                    than 15 but not more than 16

                	
                  3.20%

                
	
                  More
                    than 16 but not more than 17

                	
                  3.30%

                
	
                  More
                    than 17 but not more than 18

                	
                  3.50%

                
	
                  More
                    than 18 but not more than 19

                	
                  3.60%

                
	
                  More
                    than 19 but not more than 20

                	
                  3.70%

                
	
                  More
                    than 20 but not more than 21

                	
                  3.90%

                
	
                  More
                    than 21 but not more than 22

                	
                  4.00%

                
	
                  More
                    than 22 but not more than 23

                	
                  4.00%

                
	
                  More
                    than 23 but not more than 24

                	
                  4.00%

                
	
                  More
                    than 24 but not more than 25

                	
                  4.00%

                
	
                  More
                    than 25 but not more than 26

                	
                  4.00%

                
	
                  More
                    than 26 but not more than 27

                	
                  4.00%

                
	
                  More
                    than 27 but not more than 28

                	
                  4.00%

                
	
                  More
                    than 28 but not more than 29

                	
                  4.00%

                
	
                  More
                    than 29

                	
                  4.00%

                

        

        

        
          
            
            

          

          
            12

            
              

            

          

          
            
            

          

        
Global No. N606258N
         

        Table
          2

         

        Moody’s
          Second Trigger Factor for Interest Rate Swaps with Fixed Notional
          Amounts

         

        
          	
                  Remaining

                  Weighted
                    Average Life 

                  of
                    Hedge in Years

                	
                  Weekly

                  Collateral
                    

                  Posting

                
	
                  1
                    or less

                	
                  0.60%

                
	
                  More
                    than 1 but not more than 2

                	
                  1.20%

                
	
                  More
                    than 2 but not more than 3

                	
                  1.70%

                
	
                  More
                    than 3 but not more than 4

                	
                  2.30%

                
	
                  More
                    than 4 but not more than 5

                	
                  2.80%

                
	
                  More
                    than 5 but not more than 6

                	
                  3.30%

                
	
                  More
                    than 6 but not more than 7

                	
                  3.80%

                
	
                  More
                    than 7 but not more than 8

                	
                  4.30%

                
	
                  More
                    than 8 but not more than 9

                	
                  4.80%

                
	
                  More
                    than 9 but not more than 10

                	
                  5.30%

                
	
                  More
                    than 10 but not more than 11

                	
                  5.60%

                
	
                  More
                    than 11 but not more than 12

                	
                  6.00%

                
	
                  More
                    than 12 but not more than 13

                	
                  6.40%

                
	
                  More
                    than 13 but not more than 14

                	
                  6.80%

                
	
                  More
                    than 14 but not more than 15

                	
                  7.20%

                
	
                  More
                    than 15 but not more than 16

                	
                  7.60%

                
	
                  More
                    than 16 but not more than 17

                	
                  7.90%

                
	
                  More
                    than 17 but not more than 18

                	
                  8.30%

                
	
                  More
                    than 18 but not more than 19

                	
                  8.60%

                
	
                  More
                    than 19 but not more than 20

                	
                  9.00%

                
	
                  More
                    than 20 but not more than 21

                	
                  9.00%

                
	
                  More
                    than 21 but not more than 22

                	
                  9.00%

                
	
                  More
                    than 22 but not more than 23

                	
                  9.00%

                
	
                  More
                    than 23 but not more than 24

                	
                  9.00%

                
	
                  More
                    than 24 but not more than 25

                	
                  9.00%

                
	
                  More
                    than 25 but not more than 26

                	
                  9.00%

                
	
                  More
                    than 26 but not more than 27

                	
                  9.00%

                
	
                  More
                    than 27 but not more than 28

                	
                  9.00%

                
	
                  More
                    than 28 but not more than 29

                	
                  9.00%

                
	
                  More
                    than 29

                	
                  9.00%

                

        

         

        
          
            
            

          

          
            13

            
              

            

          

          
            
            

          

        

        Global
          No. N606258N

         

        Table
          3

         

        Moody’s
          Second Trigger Factor for Transaction-Specific Hedges

         

        
          	
                  Remaining

                  Weighted
                    Average Life 

                  of
                    Hedge in Years

                	
                  Weekly

                  Collateral

                  Posting

                
	
                  1
                    or less

                	
                  0.75%

                
	
                  More
                    than 1 but not more than 2

                	
                  1.50%

                
	
                  More
                    than 2 but not more than 3

                	
                  2.20%

                
	
                  More
                    than 3 but not more than 4

                	
                  2.90%

                
	
                  More
                    than 4 but not more than 5

                	
                  3.60%

                
	
                  More
                    than 5 but not more than 6

                	
                  4.20%

                
	
                  More
                    than 6 but not more than 7

                	
                  4.80%

                
	
                  More
                    than 7 but not more than 8

                	
                  5.40%

                
	
                  More
                    than 8 but not more than 9

                	
                  6.00%

                
	
                  More
                    than 9 but not more than 10

                	
                  6.60%

                
	
                  More
                    than 10 but not more than 11

                	
                  7.00%

                
	
                  More
                    than 11 but not more than 12

                	
                  7.50%

                
	
                  More
                    than 12 but not more than 13

                	
                  8.00%

                
	
                  More
                    than 13 but not more than 14

                	
                  8.50%

                
	
                  More
                    than 14 but not more than 15

                	
                  9.00%

                
	
                  More
                    than 15 but not more than 16

                	
                  9.50%

                
	
                  More
                    than 16 but not more than 17

                	
                  9.90%

                
	
                  More
                    than 17 but not more than 18

                	
                  10.40%

                
	
                  More
                    than 18 but not more than 19

                	
                  10.80%

                
	
                  More
                    than 19 but not more than 20

                	
                  11.00%

                
	
                  More
                    than 20 but not more than 21

                	
                  11.00%

                
	
                  More
                    than 21 but not more than 22

                	
                  11.00%

                
	
                  More
                    than 22 but not more than 23

                	
                  11.00%

                
	
                  More
                    than 23 but not more than 24

                	
                  11.00%

                
	
                  More
                    than 24 but not more than 25

                	
                  11.00%

                
	
                  More
                    than 25 but not more than 26

                	
                  11.00%

                
	
                  More
                    than 26 but not more than 27

                	
                  11.00%

                
	
                  More
                    than 27 but not more than 28

                	
                  11.00%

                
	
                  More
                    than 28 but not more than 29

                	
                  11.00%

                
	
                  More
                    than 29

                	
                  11.00%

                

        

        

        
          
            
            

          

          
            14

            
              

            

          

          
            
            

          

        
Global No. N606258N
         

        IN
          WITNESS WHEREOF, the parties have executed this Annex by their duly authorized
          representatives as of the date of the Agreement.

         

        
          	
                  Deutsche
                    Bank AG

                   

                	
                  HSBC
                    Bank USA, National Association, not in its individual capacity,
                    but solely
                    as Trustee for the ACE Securities Corp. Home Equity Loan Trust,
                    Series
                    2007-HE4 Asset Backed Pass-Through Certificates

                   

                
	
                  By: /s/
                    Chris Flanagan

                  Chris
                    Flanagan

                  Authorized
                    Representative

                	
                  By: /s/
                    Fernando Acebedo

                  Fernando
                    Acebedo

                  Vice
                    President

                

        

         

        
          
            
            

          

          
            15

            
              

            

          

          
            
            

          

           

        

      

    

     

    
      
        	
                DATE:

              	
                April
                  30, 2007

              
	 	 
	
                TO:

                 

              	
                HSBC
                  Bank USA, National Association, not in its individual capacity,
                  but solely
                  as Trustee for the ACE Securities Corp. Home Equity Loan Trust,
                  Series
                  2007-HE4 Asset Backed Pass-Through Certificates (“Party
                  B”)

                 

              
	
                ATTENTION:

              	
                HSBC
                  BANK USA, National Association

              
	
              	
                CTLA
                  - Structured Finance

              
	
              	
                452
                  Fifth Avenue

              
	 	
                Attn:
                  Susie Moy

              
	 	
                New
                  York, NY 10018

                 

              
	
                FROM:

              	
                Deutsche
                  Bank AG,
                  New York Branch

              
	 	 
	
                ATTENTION:
                   

              	
                New
                  York Derivatives Documentation 

              
	
                TELEPHONE: 

              	
                1
                  212 250 9425 

              
	
                FACSIMILE:
                   

              	
                1
                  212 797 0779 

              
	
                EMAIL:
                   

              	
                NYderivative.documentation@db.com]

              
	 	 
	
                OUR
                  REFERENCE:

              	
                N606257N

              
	 	 
	
                RE:

              	
                Interest
                  Rate Cap Transaction

              

      

    

     

    The
      purpose of this long-form confirmation (“Confirmation”)
      is to
      confirm the terms and conditions of the current Transaction entered into on
      the
      Trade Date specified below (the “Transaction”)
      between
      Deutsche Bank AG,
      New
      York Branch
      (“Party
      A”) and
      HSBC
      Bank USA, National Association, not individually, but solely as trustee (the
      “Trustee”) on behalf of the ACE Securities Corp. Home Equity Loan Trust, Series
      2007-HE4 Asset Backed Pass-Through Certificates (the “Trust”)
      created under Pooling and Servicing Agreement, dated as of April 1, 2007, among
      Ace Securities Corp. (the “Depositor”),
      Ocwen
      Loan Servicing, LLC (a “Servicer”),
      GMAC
      Mortgage, LLC (a “Servicer”),
      Wells
      Fargo Bank, National Association (the “Master
      Servicer”
      and the
“Securities
      Administrator”)
      and
      HSBC Bank USA, National Association (the
      “Trustee”).
      This
      Confirmation evidences a complete and binding agreement between you and us
      to
      enter into the Transaction on the terms set forth below and replaces any
      previous agreement between us with respect to the subject matter hereof. This
      Confirmation constitutes a “Confirmation”
      and also
      constitutes a “Schedule”
      as
      referred to in the ISDA Master Agreement, and Paragraph 13 of a Credit Support
      Annex to the Schedule. 

    
      

      
        	1.    	
                This
                  Confirmation shall supplement, form a part of, and be subject to
                  an
                  agreement in the form of the ISDA Master Agreement (Multicurrency
                  - Cross
                  Border) as published and copyrighted in 1992 by the International
                  Swaps
                  and Derivatives Association, Inc. (the “ISDA
                  Master Agreement”),
                  as if Party A and Party B had executed an agreement in such form
                  on the
                  date hereof, with a Schedule as set forth in Item 3 of this Confirmation,
                  and an ISDA Credit Support Annex (Bilateral Form - ISDA Agreements
                  Subject
                  to New York Law Only version) as published and copyrighted in 1994
                  by the
                  International Swaps and Derivatives Association, Inc., with Paragraph
                  13
                  thereof as set forth in Annex A hereto (the “Credit
                  Support Annex”).
                  For the avoidance of doubt, the Transaction described herein shall
                  be the
                  sole Transaction governed by such ISDA Master Agreement. In the
                  event of
                  any inconsistency among any of the following documents, the relevant
                  document first listed shall govern: (i) this Confirmation, exclusive
                  of
                  the provisions set forth in Item 3 hereof and Annex A hereto; (ii)
                  the
                  provisions set forth in Item 3 hereof, which are incorporated by
                  reference
                  into the Schedule; (iii) the Credit Support Annex; (iv) the Definitions;
                  and (v) the ISDA Master Agreement.

              

      

      
         

        Chairman
          of the Supervisory Board: Clemens Börsig

        Management
          Board: Josef Ackermann (Chairman), Hugo Banziger, Tessen von Heydebreck,
          Anthony
          Di Iorio, Hermann-Josef Lamberti

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
        Page
          2
of
          26

         

      

      Each
        reference herein to a “Section” (unless specifically referencing the Pooling and
        Servicing Agreement) or to a “Section” “of this Agreement” will be construed as
        a reference to a Section of the ISDA Master Agreement; each herein reference
        to
        a “Part” will be construed as a reference to the provisions herein deemed
        incorporated in a Schedule to the ISDA Master Agreement; each reference herein
        to a “Paragraph” will be construed as a reference to a Paragraph of the Credit
        Support Annex. 

      

      
        	2.    	
                The
                  terms of the particular Transaction to which this Confirmation
                  relates are
                  as follows:

              

      

      

        
          	
                  Type
                    of Transaction:

                	
                  Interest
                    Rate Cap

                
	 	 
	
                  Notional
                    Amount:

                	
                  With
                    respect to any Calculation Period, the lesser of (i) the amount
                    set forth
                    on Schedule I attached hereto for such Calculation Period and
                    (ii) the
                    aggregate principal balance of the Group II Mortgage Loans at
                    the
                    beginning of the Due Period in which the related Calculation
                    Period begins
                    (determined for this purpose without regard to any adjustment
                    of the
                    Floating Rate Payer Payment Date or Due Period relating to business
                    days).

                
	 	 
	
                  Trade
                    Date:

                	
                  April
                    25, 2007

                
	 	 
	
                  Effective
                    Date:

                	
                  April
                    30, 2007

                
	 	 
	
                  Termination
                    Date:

                	
                  October
                    25, 2007, subject to adjustment in accordance with the Business
                    Day
                    Convention.

                
	 	 
	
                  Fixed
                    Amounts:

                	 
	 	 
	
                  Fixed
                    Rate Payer:

                	
                  Party
                    B

                
	 	 
	
                  Fixed
                    Rate Payer

                	 
	
                  Payment
                    Date:

                	
                  April
                    30, 2007

                
	 	 
	
                  Fixed
                    Amount:

                	
                  $6,000

                
	
                  .

                	 
	 	 
	
                  Floating
                    Amounts:

                	 
	 	 
	
                  Floating
                    Rate Payer:

                	
                  Party
                    A

                
	 	 
	
                  Floating
                    Rate Payer

                	 
	
                  Period
                    End Dates:

                	
                  The
                    25th
                    calendar day of each month during the Term of this Transaction,
                    commencing
                    May 25, 2007 and ending on the Termination Date, subject to adjustment
                    in
                    accordance with the Business Day Convention.

                
	 	 
	
                  Floating
                    Rate Payer 

                	 
	
                  Payment
                    Dates:

                	
                  Early
                    Payment shall be applicable. The Floating Rate Payer Payment
                    Date shall be
                    one (1) Business Day preceding each Floating Rate Payer Period
                    End
                    Date.

                
	 	 
	
                  Cap
                    Rate:

                	
                  7.50%

                
	
                   

                	 
	
                  Floating
                    Rate Option:

                	
                  USD-LIBOR-BBA

                

        

         

        
          
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                  Designated
                    Maturity:

                	
                  One
                    month

                
	 	 
	
                  Floating
                    Rate Day 

                	 
	
                  Count
                    Fraction:

                	
                  Actual/360

                
	 	 
	
                  Reset
                    Dates:

                	
                  The
                    first day of each Calculation Period.

                
	 	 
	
                  Compounding:

                	
                  Inapplicable

                
	 	 
	
                  Business
                    Days:

                	
                  New
                    York

                
	 	 
	
                  Business
                    Day Convention:

                	
                  Following

                
	 	 
	
                  Calculation
                    Agent:

                	
                  Party
                    A

                

        

         

        
          
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                3.

              	
                Provisions
                  Deemed Incorporated in a Schedule to the ISDA Master
                  Agreement:

              

      

      

      
        	
                Part
                  1.

              	
                Termination
                  Provisions.

              

      

      

      For
        the
        purposes of this Agreement:-

      

      
        	(a)   	
                “Specified
                  Entity”
                  will not apply to Party A or Party B for any purpose.
                  

              

      

      

      
        	
                (b)

              	
                “Specified
                  Transaction”
                  will have the meaning specified in Section
                  14.

              

      

      

      
        	
                (c)

              	
                Events
                  of Default.

              

      

      

      The
        statement below that an Event of Default will apply to a specific party means
        that upon the occurrence of such an Event of Default with respect to such
        party,
        the other party shall have the rights of a Non-defaulting Party under Section
        6
        of this Agreement; conversely, the statement below that such event will not
        apply to a specific party means that the other party shall not have such
        rights.

      

      
        	
              	(i)	
                The
                  “Failure
                  to Pay or Deliver”
                  provisions of Section 5(a)(i) will apply to Party A and will apply
                  to
                  Party B; provided, however, that Section 5(a)(i) is hereby amended
                  by
                  replacing the word “third” with the word “first”; provided, further, that
                  notwithstanding anything to the contrary in Section 5(a)(i), any
                  failure
                  by Party A to comply with or perform any obligation to be complied
                  with or
                  performed by Party A under the Credit Support Annex shall not constitute
                  an Event of Default under Section 5(a)(i) unless (A) a Required
                  Ratings
                  Downgrade Event has occurred and been continuing for 30 or more
                  Local
                  Business Days and (B) such failure is not remedied on or before
                  the third
                  Local Business Day after notice of such failure is given to Party
                  A.

              

      

      

      
        	
              	(ii)	
                The
                  “Breach
                  of Agreement”
                  provisions of Section 5(a)(ii) will apply to Party A and will not
                  apply to
                  Party B.

              

      

      

      
        	
              	(iii)	
                The
                  “Credit
                  Support Default”
                  provisions of Section 5(a)(iii) will apply to Party A and will
                  not apply
                  to Party B except that Section 5(a)(iii)(1) will apply to Party
                  B solely
                  in respect of Party B’s obligations under Paragraph 3(b) of the Credit
                  Support Annex; provided, however, that notwithstanding anything
                  to the
                  contrary in Section 5(a)(iii)(1), any failure by Party A to comply
                  with or
                  perform any obligation to be complied with or performed by Party
                  A under
                  the Credit Support Annex shall not constitute an Event of Default
                  under
                  Section 5(a)(iii) unless (A) a Required Ratings Downgrade Event
                  has
                  occurred and been continuing for 30 or more Local Business Days
                  and (B)
                  such failure is not remedied on or before the third Local Business
                  Day
                  after notice of such failure is given to Party
                  A.

              

      

      

      
        	
              	(iv)	
                The
                  “Misrepresentation”
                  provisions of Section 5(a)(iv) will apply to Party A and will not
                  apply to
                  Party B. 

              

      

      

      
        	
              	(v)	
                The
                  “Default
                  under Specified Transaction”
                  provisions of Section 5(a)(v) will apply to Party A and will not
                  apply to
                  Party B.

              

      

      

      
        	
              	(vi)	
                The
                  “Cross
                  Default”
                  provisions of Section 5(a)(vi) will apply to Party A and will not
                  apply to
                  Party B, provided, however, that, notwithstanding the foregoing,
                  an Event
                  of Default shall not occur under either Section 5(a)(vi)(1) or
                  Section
                  5(a)(vi)(2) if (A) (I) the default, or other similar event or condition
                  referred to in Section 5(a)(vi)(1) or the failure to pay referred
                  to in
                  Section 5(a)(vi)(2) is a failure to pay or deliver caused by an
                  error or
                  omission of an administrative or operational nature, and (II) funds
                  or the
                  asset to be delivered were available to such party to enable it
                  to make
                  the relevant payment or delivery when due and (III) such payment
                  or
                  delivery is made within three (3) Local Business Days following
                  receipt of
                  written notice from an interested party of such failure to pay,
                  or (B)
                  such party was precluded from paying, or was unable to pay, using
                  reasonable means, through the office of the party through which
                  it was
                  acting for purposes of the relevant Specified Indebtedness, by
                  reason of
                  force majeure, act of State, illegality or impossibility.
                  

              

      

      For
        purposes of Section 5(a)(vi), solely with respect to Party A:

       

      
        
          
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      “Specified
        Indebtedness” will have the meaning specified in Section 14 ,except that such
        term shall not include obligations in respect of deposits received in the
        ordinary course of Party A’s banking business.

      

      “Threshold
        Amount” means with respect to Party A an amount equal to three percent (3%) of
        the Shareholders’ Equity of Party A or, if applicable, the Eligible Guarantor.

      

      “Shareholders’
        Equity” means with respect to an entity, at any time, the sum (as shown in the
        most recent annual audited financial statements of such entity) of (i) its
        capital stock (including preferred stock) outstanding, taken at par value,
        (ii)
        its capital surplus and (iii) its retained earnings, minus (iv) treasury
        stock,
        each to be determined in accordance with generally accepted accounting
        principles.

      

      
        	
              	(vii)	
                The
                  “Bankruptcy”
                  provisions of Section 5(a)(vii) will apply to Party A and will
                  apply to
                  Party B except that the provisions of Section 5(a)(vii)(2), (6)
                  (to the
                  extent that such provisions refer to any appointment contemplated
                  or
                  effected by the Pooling and Servicing Agreement or any appointment
                  to
                  which Party B has not become subject), (7) and (9) will not apply
                  to Party
                  B; provided that, with respect to Party B only, Section 5(a)(vii)(4)
                  is
                  hereby amended by adding after the words “against it” the words
                  “(excluding any proceeding or petition instituted or presented by
                  Party A
                  or its Affiliates)”, and Section 5(a)(vii)(8) is hereby amended by
                  deleting the words “to (7) inclusive” and inserting lieu thereof “, (3),
                  (4) as amended, (5), (6) as amended, or
                  (7)”.

              

      

      

      
        	
              	(viii)	
                The
                  “Merger
                  Without Assumption”
                  provisions of Section 5(a)(viii) will apply to Party A and will
                  apply to
                  Party B.

              

      

      

      
        	(d)   	
                Termination
                  Events.

              

      

      

      The
        statement below that a Termination Event will apply to a specific party means
        that upon the occurrence of such a Termination Event, if such specific party
        is
        the Affected Party with respect to a Tax Event, the Burdened Party with respect
        to a Tax Event Upon Merger (except as noted below) or the non-Affected Party
        with respect to a Credit Event Upon Merger, as the case may be, such specific
        party shall have the right to designate an Early Termination Date in accordance
        with Section 6 of this Agreement; conversely, the statement below that such
        an
        event will not apply to a specific party means that such party shall not
        have
        such right; provided, however, with respect to “Illegality” the statement that
        such event will apply to a specific party means that upon the occurrence
        of such
        a Termination Event with respect to such party, either party shall have the
        right to designate an Early Termination Date in accordance with Section 6
        of
        this Agreement.

      

      
        	
              	(i)	
                The
                  “Illegality”
                  provisions of Section 5(b)(i) will apply to Party A and will apply
                  to
                  Party B.

              

      

      

      
        
          
            	
                  	(ii)	
                    The
                      “Tax
                      Event”
                      provisions of Section 5(b)(ii) will apply to Party A except
                      that, for
                      purposes of the application of Section 5(b)(ii) to Party A,
                      Section
                      5(b)(ii) is hereby amended by deleting the words “(x) any action taken by
                      a taxing authority, or brought in a court of competent jurisdiction,
                      on or
                      after the date on which a Transaction is entered into (regardless
                      of
                      whether such action is taken or brought with respect to a party
                      to this
                      Agreement) or (y)”, and the “Tax
                      Event”
                      provisions of Section 5(b)(ii) will apply to Party B.
                      

                  

          

        

      

      

      
        
          
            	
                  	(iii)	
                    The
                      “Tax
                      Event Upon Merger”
                      provisions of Section 5(b)(iii) will apply to Party A and will
                      apply to
                      Party B, provided that Party A shall not be entitled to designate
                      an Early
                      Termination Date by reason of a Tax Event upon Merger in respect
                      of which
                      it is the Affected Party.

                  

          

           

        

      

      
        
          
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                  	(iv)	
                    The
                      “Credit
                      Event Upon Merger”
                      provisions of Section 5(b)(iv) will not apply to Party A and
                      will not
                      apply to Party B.

                  

          

        

      

      

      
        
          
            	(e)   	
                    The
                      “Automatic
                      Early Termination”
                      provision of Section 6(a) will not apply to Party A and will
                      not apply to
                      Party B.

                  

          

        

      

      

      
        	(f)   	
                Payments
                  on Early Termination.
                  For the purpose of Section 6(e) of this
                  Agreement:

              

      

      

      
        	
              	(i)	
                Market
                  Quotation will apply, provided, however, that, in the event of
                  a
                  Derivative Provider Trigger Event, the following provisions will
                  apply:

              

      

      

      
        
          
            	
                  	(A)	
                    The
                      definition of Market Quotation in Section 14 shall be deleted
                      in its
                      entirety and replaced with the
                      following:

                  

          

        

      

      

      “Market
        Quotation” means,
        with respect to one or more Terminated Transactions, a Firm Offer which is
        (1)
        made by a Reference Market-maker that is an Eligible Replacement, (2) for
        an
        amount that would be paid to Party B (expressed as a negative number) or
        by
        Party B (expressed as a positive number) in consideration of an agreement
        between Party B and such Reference Market-maker to enter into a Replacement
        Transaction, and (3) made on the basis that Unpaid Amounts in respect of
        the
        Terminated Transaction or group of Transactions are to be excluded but, without
        limitation, any payment or delivery that would, but for the relevant Early
        Termination Date, have been required (assuming satisfaction of each applicable
        condition precedent) after that Early Termination Date is to be
        included.

      

      
        
          
            	
                  	(B)	
                    The
                      definition of Settlement Amount shall be deleted in its entirety
                      and
                      replaced with the
                      following:

                  

          

        

      

      

      “Settlement
        Amount”
        means,
        with respect to any Early Termination Date, an amount (as determined by Party
        B)
        equal to: 

      

      
        
          
            	
                  	(a)	
                    If
                      a Market Quotation for the relevant Terminated Transaction
                      or group of
                      Terminated Transactions is accepted by Party B so as to become
                      legally
                      binding on or before the day falling ten Local Business Days
                      after the day
                      on which the Early Termination Date is designated, or such
                      later day as
                      Party B may specify in writing to Party A, but in either case
                      no later
                      than one Local Business Day prior to the Early Termination
                      Date (such day,
                      the “Latest Settlement Amount Determination Day”), the Termination
                      Currency Equivalent of the amount (whether positive or negative)
                      of such
                      Market Quotation; 

                  

          

        

      

      

      
        
          
            	
                  	(b)	
                    If,
                      on the Latest Settlement Amount Determination Day, no Market
                      Quotation for
                      the relevant Terminated Transaction or group of Terminated
                      Transactions
                      has been accepted by Party B so as to become legally binding
                      and one or
                      more Market Quotations from
                      Approved Replacements have
                      been made and remain capable of becoming legally binding upon
                      acceptance,
                      the Settlement Amount shall equal the Termination Currency
                      Equivalent of
                      the amount (whether positive or negative) of the lowest of
                      such Market
                      Quotations (for the avoidance of doubt, the lowest of such
                      Market
                      Quotations shall be the lowest Market Quotation of
                      such Market Quotations
                      expressed as a positive number or, if any of such Market Quotations
                      is
                      expressed as a negative number, the Market Quotation expressed
                      as a
                      negative number with the largest absolute value);
                      or

                  

          

        

      

      

      
        
          
            	
                  	(c)	
                    If,
                      on the Latest Settlement Amount Determination Day, no Market
                      Quotation for
                      the relevant Terminated Transaction or group of Terminated
                      Transactions is
                      accepted by Party B so as to become legally binding and no
                      Market
                      Quotation from an Approved Replacement remains capable of becoming
                      legally
                      binding upon acceptance, the Settlement Amount shall equal
                      Party B’s Loss
                      (whether positive or negative and without reference to any
                      Unpaid Amounts)
                      for the relevant Terminated Transaction or group of Terminated
                      Transactions.

                  

          

        

      

      
         

        
          
            
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                (C)

              	
                If
                  Party B requests Party A in writing to obtain Market Quotations,
                  Party A
                  shall use its reasonable efforts to do so before the Latest Settlement
                  Amount Determination Day.

              

      

      

      
        	 	
                (D)

              	
                If
                  the Settlement Amount is a negative number, Section 6(e)(i)(3)
                  shall be
                  deleted in its entirety and replaced with the
                  following:

              

      

      

      “(3)
        Second
        Method and Market Quotation.
        If the
        Second Method and Market Quotation apply, (I) Party B shall pay to Party
        A an
        amount equal to the absolute value of the Settlement Amount in respect of
        the
        Terminated Transactions, (II) Party B shall pay to Party A the Termination
        Currency Equivalent of the Unpaid Amounts owing to Party A and (III) Party
        A
        shall pay to Party B the Termination Currency Equivalent of the Unpaid Amounts
        owing to Party B; provided, however, that (x) the amounts payable under the
        immediately preceding clauses (II) and (III) shall be subject to netting
        in
        accordance with Section 2(c) of this Agreement and (y) notwithstanding any
        other
        provision of this Agreement, any amount payable by Party A under the immediately
        preceding clause (III) shall not be netted-off against any amount payable
        by
        Party B under the immediately preceding clause (I).”

       

      
        	 	
                (E)

              	
                At
                  any time on or before the Latest Settlement Amount Determination
                  Day at
                  which two or more Market Quotations from Approved Replacements
                  remain
                  capable of becoming legally binding upon acceptance, Party B shall
                  be
                  entitled to accept only the lowest of such Market Quotations (for
                  the
                  avoidance of doubt, the lowest of such Market Quotations shall
                  be the
                  lowest Market Quotation of such Market Quotations expressed as
                  a positive
                  number or, if any of such Market Quotations is expressed as a negative
                  number, the Market Quotation expressed as a negative number with
                  the
                  largest absolute value).

              

      

      

      
        	
              	(ii)	
                The
                  Second Method will apply.

              

      

      

      
        	(g)   	
                “Termination
                  Currency”
                  means USD.

              

      

      

      
        	(h)   	
                Additional
                  Termination Events.
                  Additional Termination Events will apply as provided in Part 5(c).
                  

              

      

      
         

        
          
            
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      Part
        2.  Tax
        Matters.

      

      
        	(a)   	
                Tax
                  Representations. 

              

      

      

      
        	 	
                (i)

              	
                Payer
                  Representations.
                  For the purpose of Section 3(e) of this Agreement:
                  

              

      

       

      
        	
              	(A)	
                Party
                  A makes the following
                  representation(s):

              

      

      

      It
        is not
        required by any applicable law, as modified by the practice of any relevant
        governmental revenue authority, of any Relevant Jurisdiction to make any
        deduction or withholding for or on account of any Tax from any payment (other
        than interest under Section 2(e), 6(d)(ii) or 6(e) of this Agreement) to
        be made
        by it to the other party under this Agreement. In making this representation,
        it
        may rely on: the accuracy of any representations made by the other party
        pursuant to Section 3(f) of this Agreement; (ii) the satisfaction of the
        agreement contained in Section 4(a)(i) or 4(a)(iii) of this Agreement and
        the
        accuracy and effectiveness of any document provided by the other party pursuant
        to Section 4(a)(i) or 4(a)(iii) of this Agreement; and (iii) the satisfaction
        of
        the agreement of the other party contained in Section 4(d) of this Agreement,
        provided that it shall not be a breach of this representation where reliance
        is
        placed on clause (ii) and the other party does not deliver a form or document
        under Section 4(a)(iii) by reason of material prejudice to its legal or
        commercial position.

       

      
        	
              	(B)	
                Party
                  B makes the following
                  representation(s):

              

      

      

      None.

      

      
        	
              	(ii)	
                Payee
                  Representations.
                  For the purpose of Section 3(f) of this Agreement:
                  

              

      

       

      
        	
              	(A)	
                Party
                  A makes the following
                  representation(s):

              

      

      

      It
        is a
“foreign person” within the meaning of the applicable U.S. Treasury Regulations
        concerning information reporting and backup withholding tax (as in effect
        on
        January 1, 2001), unless Party A provides written notice to Party B that
        it is
        no longer a foreign person. In respect of any Transaction it enters into
        through
        an office or discretionary agent in the United States or which otherwise
        is
        allocated for United States federal income tax purposes to such United States
        trade or business, each payment received or to be received by it under such
        Transaction will be effectively connected with its conduct of a trade or
        business in the United States.

       

      
        	
              	(B)	
                Party
                  B makes the following
                  representation(s):

              

      

      

      None. 

      

      
        	
                (b)

              	
                Tax
                  Provisions.

              

      

      

      
        	 	
                (i)

              	
                Gross
                  Up.
                  Section 2(d)(i)(4) shall not apply to Party B as X, and Section
                  2(d)(ii)
                  shall not apply to Party B as Y, in each case such that Party B
                  shall not
                  be required to pay any additional amounts referred to
                  therein.

              

      

      

      
        	 	
                (ii)

              	
                Indemnifiable
                  Tax.
                  The definition of “Indemnifiable Tax” in Section 14 is deleted in its
                  entirety and replaced with the
                  following:

              

      

      

      “Indemnifiable
        Tax”
        means,
        in relation to payments by Party A, any Tax and, in relation to payments
        by
        Party B, no Tax. 

      
         

        
          
            
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       Part
        3.  Agreement
        to Deliver Documents.  

      

      
        	(a)    	
                For
                  the purpose of Section 4(a)(i), tax forms, documents, or certificates
                  to
                  be delivered are:

              

      

      

      
        	
                Party
                  required to deliver document

              	 	
                Form/Document/

                Certificate

              	 	
                Date
                  by which to

                be
                  delivered

              
	 	 	 	 	 
	
                Party
                  A

                 

              	 	
                A
                  correct, complete and duly executed U.S. Internal Revenue Service
                  Form
                  W-8ECI or other applicable form (or successor thereto), together
                  with
                  appropriate attachments, that eliminates U.S. federal withholding
                  and
                  backup withholding Tax on payments to Party A under this
                  Agreement.

              	 	
                (i)
                  upon execution of this Agreement, (ii) on or before the first payment
                  date
                  under this Agreement, including any Credit Support Document, (iii)
                  promptly upon the reasonable demand by Party B, (iv) prior to the
                  expiration or obsolescence of any previously delivered form, and
                  (v)
                  promptly upon the information on any such previously delivered
                  form
                  becoming inaccurate or incorrect.

              
	 	 	 	 	 
	
                Party
                  B

                 

              	 	
                Party
                  B will deliver at closing an original properly completed and executed
                  United States Internal Revenue Service Form W-9 or other applicable
                  form
                  (or any successor thereto) with respect to any payments received
                  or to be
                  received by Party A, that eliminates U.S. federal withholding and
                  backup
                  withholding Tax on payments to Party A under this Agreement, and
                  may
                  deliver other tax forms relating to the beneficial owner of payments
                  to
                  Party B under this Agreement from time to time.

              	 	
                (i)
                  upon execution of this Agreement, (ii) on or before the first payment
                  date
                  under this Agreement, including any Credit Support Document, (iii)
                  promptly upon the reasonable demand by Party B, (iv) prior to the
                  expiration or obsolescence of any previously delivered form, and
                  (v)
                  promptly upon the information on any such previously delivered
                  form
                  becoming inaccurate or incorrect.

                 

              

      

      
         

        
          
            
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        	(b)   	
                For
                  the purpose of Section 4(a)(ii), other documents to be delivered
                  (unless
                  otherwise publicly available) are:

              

      

      

      
        	
                Party
                  required to deliver document

              	 	
                Form/Document/Certificate

              	 	
                Date
                  by which to be
                  delivered

              	 	
                Covered
                  by Section 3(d) Representation

              
	 	 	 	 	 	 	 
	
                Party
                  A and Party
                  B

                 

              	 	
                Any
                  documents required by the receiving party to evidence the authority
                  of the
                  delivering party or its Credit Support Provider, if any, for it
                  to execute
                  and deliver the Agreement, this Confirmation, and any Credit Support
                  Documents to which it is a party, and to evidence the authority
                  of the
                  delivering party or its Credit Support Provider to perform its
                  obligations
                  under the Agreement, this Confirmation and any Credit Support Document,
                  as
                  the case may be

              	 	
                Upon
                  the execution and delivery of this Agreement

                 

              	 	
                Yes

                 

              
	 	 	 	 	 	 	 
	
                Party
                  A and Party
                  B

                 

              	 	
                A
                  certificate of an authorized officer of the party, as to the incumbency
                  and authority of the respective officers of the party signing the
                  Agreement, this Confirmation, and any relevant Credit Support Document,
                  as
                  the case may be

              	 	
                Upon
                  the execution and delivery of this Agreement

              	 	
                Yes

              
	 	 	 	 	 	 	 
	
                Party
                  A

                 

              	 	
                Annual
                  Report of Party A containing consolidated financial statements
                  certified
                  by independent certified public accountants and prepared in accordance
                  with generally accepted accounting principles in the country in
                  which
                  Party A is organized

              	 	
                Promptly
                  upon becoming publicly available

                 

              	 	
                Yes

              
	 	 	 	 	 	 	 
	
                Party
                  A

                 

              	 	
                Quarterly
                  Financial Statements of Party A containing unaudited, consolidated
                  financial statements of Party A’s fiscal quarter prepared in accordance
                  with generally accepted accounting principles in the country in
                  which
                  Party A is organized

              	 	
                Promptly
                  upon becoming publicly available

                 

              	 	
                 

                Yes

              
	 	 	 	 	 	 	 
	
                Party
                  A

                 

              	 	
                An
                  opinion of counsel to Party A acceptable in form and substance
                  to Party
                  B

              	 	
                Upon
                  the execution and delivery of this Agreement

              	 	
                No

              

      

      

      Part
        4. Miscellaneous. 

      

      
        	
                (a)

              	
                Address
                  for Notices:
                  For the purposes of Section 12(a) of this
                  Agreement:

              

      

      

      Address
        for notices or communications to Party A: 

       

      Any
        notice to Party A relating to a particular Transaction shall be delivered
        to the
        address or facsimile number specified in the Confirmation of such Transaction.
        Any notice delivered for purposes of Sections 5 and 6 (other than notices
        under
        Section 5(a)(i) with respect to Party A) of this Agreement shall be delivered
        to
        the following address: 

      
 

      
        
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      Deutsche
        Bank AG, Head Office 

      Taunusanlage
        12 

      60262
        Frankfurt   

      GERMANY
        

      Attention:
        Legal Department 

      Fax
        No:
        0049 69 910 36097

      

      (For
        all
        purposes)

      

      Address
        for notices or communications to Party B: 

      

        
          	 	 
	
                  Address:

                	
                  HSBC
                    BANK USA, National Association 

                
	 	
                  CTLA
                    - Structured Finance

                
	 	
                  452
                    Fifth Avenue 

                
	 	
                  New
                    York, NY  10018

                
	
                  Attention:

                	
                  Susie
                    Moy

                
	
                  Tel:

                	
                  212-525-1362

                
	 	 
	
                  with
                    a copy to:

                	 
	 	 
	
                  Address:

                	
                  Wells
                    Fargo Bank, N.A.

                
	 	
                  9062
                    Old Annapolis Road

                
	 	
                  Columbia,
                    Maryland 21045

                
	
                  Attention:

                	
                  Client
                    Manager Ace 2007-HE4

                
	
                  Tel:

                	
                  410-884-2000

                
	
                  Fax:

                	
                  410-715-2380

                
	
                  (For
                    all purposes)

                	
                

        

      
        	(b)   	
                Process
                  Agent.
                  For the purpose of Section 13(c):

              

      

      

      Party
        A
        appoints as its Process Agent: Not applicable.

      

      Party
        B
        appoints as its Process Agent: Not applicable.

      

      
        	
                (c)

              	
                Offices.
                  The provisions of Section 10(a) will apply to this Agreement; neither
                  Party A nor Party B has any Offices other than as set forth in
                  the Notices
                  Section and Party A agrees that, for purposes of Section 6(b) of
                  this
                  Agreement, it shall not in the future have any Office other than
                  one in
                  the United States.

              

      

      

      
        	
                (d)

              	
                Multibranch
                  Party.
                  For the purpose of Section 10(c) of this
                  Agreement:

              

      

      

      Party
        A
        is not a Multibranch Party.

      

      
        	 	
                Party
                  B is not a Multibranch Party.

              

      

      

      
        	
                (e)

              	
                Calculation
                  Agent.
                  The Calculation Agent is Party A; provided, however, that if an
                  Event of
                  Default shall have occurred with respect to Party A, Party B shall
                  have
                  the right to appoint as Calculation Agent a third party, reasonably
                  acceptable to Party A, the cost for which shall be borne by Party
                  A.

              

      

      

      
        	(f)   	
                Credit
                  Support Document. 

              

      

    

    
      

      
        
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              Party
                A:

            	
              The
                Credit Support Annex, and any guarantee in support of Party A’s
                obligations under this Agreement.

            

    

    

    
      	
            	Party
              B:	
              The
                Credit Support Annex, solely in respect of Party B’s obligations under
                Paragraph 3(b) of the Credit Support
                Annex.

            

    

    

    
      	
              (g)

            	
              Credit
                Support Provider.

            

    

    

    
      	
            	Party
              A:	
              The
                guarantor under any guarantee in support of Party A’s obligations under
                this Agreement.

            

    

    

    
      	
            	PartyB:	
              None.

            

    

    

    
      	
              (h)

            	
              Governing
                Law.
                The parties to this Agreement hereby agree that the law of the State
                of
                New York shall govern their rights and duties in whole, without regard
                to
                the conflict of law provisions thereof other than New York General
                Obligations Law Sections 5-1401 and 5-1402.

            

    

    

    
      	
              (i)

            	
              Netting
                of Payments.
                The parties agree that subparagraph (ii) of Section 2(c) will apply
                to
                each Transaction hereunder. 

            

    

    

    
      	
              (j)

            	
              Affiliate.“Affiliate”
                shall have the meaning assigned thereto in Section 14; provided,
                however,
                that Party B shall be deemed to have no Affiliates for purposes of
                this
                Agreement, including for purposes of Section
                6(b)(ii).

            

    

    
      

      
        
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    Part
      5.  Others
      Provisions.

    

    
      	
              (a)

            	
              Definitions.
                Unless
                otherwise specified in a Confirmation, this Agreement and each Transaction
                under this Agreement are subject to the 2000 ISDA Definitions as
                published
                and copyrighted in 2000 by the International Swaps and Derivatives
                Association, Inc. (the “Definitions”),
                and will be governed in all relevant respects by the provisions set
                forth
                in the Definitions, without regard to any amendment to the Definitions
                subsequent to the date hereof. The provisions of the Definitions
                are
                hereby incorporated by reference in and shall be deemed a part of
                this
                Agreement, except that (i) references in the Definitions to a “Swap
                Transaction” shall be deemed references to a “Transaction” for purposes of
                this Agreement, and (ii) references to a “Transaction” in this Agreement
                shall be deemed references to a “Swap Transaction” for purposes of the
                Definitions. Each term capitalized but not defined in this Agreement
                shall
                have the meaning assigned thereto in the Pooling and Servicing
                Agreement.

            

    

     

    
      	(b)   	
              Amendments
                to ISDA Master Agreement.

            

    

    

    
      	 	
              (i)

            	
              Single
                Agreement.
                Section 1(c) is hereby amended by the adding the words “including, for the
                avoidance of doubt, the Credit Support Annex” after the words “Master
                Agreement”. 

            

    

    

    
      	
            	(ii)	
              Conditions
                Precedent. Section
                2(a)(iii) is hereby amended by adding the following at the end thereof:
                

            

    

    

    Notwithstanding
      anything to the contrary in Section 2(a)(iii)(1), if an Event of Default with
      respect to Party B or Potential Event of Default with respect to Party B has
      occurred and been continuing for more than 30 Local Business Days and no Early
      Termination Date in respect of the Affected Transactions has occurred or been
      effectively designated by Party A, the obligations of Party A under Section
      2(a)(i) shall cease to be subject to the condition precedent set forth in
      Section 2(a)(iii)(1) with respect to such specific occurrence of such Event
      of
      Default or such Potential Event of Default (the “Specific
      Event”);
      provided, however, for the avoidance of doubt, the obligations of Party A under
      Section 2(a)(i) shall be subject to the condition precedent set forth in Section
      2(a)(iii)(1) (subject to the foregoing) with respect to any subsequent
      occurrence of the same Event of Default with respect to Party B or Potential
      Event of Default with respect to Party B after the Specific Event has ceased
      to
      be continuing and with respect to any occurrence of any other Event of Default
      with respect to Party B or Potential Event of Default with respect to Party
      B
      that occurs subsequent to the Specific Event. 

    

    
      	 	
              (iii)

            	
              Change
                of Account.
                Section 2(b) is hereby amended by the addition of the following after
                the
                word “delivery” in the first line
                thereof:

            

    

     

    “to
      another account in the same legal and tax jurisdiction as the original
      account”.

    

    
      	 	
              (iv)

            	
              Representations.
                Section 3 is hereby amended by adding at the end thereof the following
                subsection (g): 

            

    

    

    
      	 	
              “(g)

            	
              Relationship
                Between Parties. 

            

    

    

    
      	 	
              (1)

            	
              Nonreliance.
                (i) It is not relying on any statement or representation of the other
                party regarding the Transaction (whether written or oral), other
                than the
                representations expressly made in this Agreement or the Confirmation
                in
                respect of that Transaction and (ii) it has consulted with its own
                legal,
                regulatory, tax, business, investment, financial and accounting advisors
                to the extent it has deemed necessary, and it has made its own investment,
                hedging and trading decisions based upon its own judgment and upon
                any
                advice from such advisors as it has deemed necessary and not upon
                any view
                expressed by the other party.

            

    

    
      

      
        
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              (2)

            	
              Evaluation
                and Understanding. (i) It has the capacity to evaluate (internally
                or
                through independent professional advice) the Transaction and has
                made its
                own decision to enter into the Transaction and (ii) It understands
                the
                terms, conditions and risks of the Transaction and is willing and
                able to
                accept those terms and conditions and to assume those risks, financially
                and otherwise. 

            

    

    

    
      	 	
              (3)

            	
              Purpose.
                It is entering into the Transaction for the purposes of managing
                its
                borrowings or investments, hedging its underlying assets or liabilities
                or
                in connection with a line of business.

            

    

    

    
      	 	
              (4)

            	
              Status
                of Parties. The other party is not acting as an agent, fiduciary
                or
                advisor for it in respect of the Transaction.

            

    

    

    
      	 	
              (5)

            	
              Eligible
                Contract Participant. It is an “eligible swap participant” as such term is
                defined in, Section 35.1(b)(2) of the regulations (17 C.F.R. 35)
                promulgated under, and an “eligible contract participant” as defined in
                Section 1(a)(12) of the Commodity Exchange Act, as
                amended.”

            

    

    

    
      	 	
              (v)

            	
              Transfer
                to Avoid Termination Event.
                Section 6(b)(ii) is hereby amended by (i) deleting the words “or if a Tax
                Event Upon Merger occurs and the Burdened Party is the Affected Party,”
                and (ii) by deleting the words “to transfer” and inserting the words “to
                effect a Permitted Transfer” in lieu
                thereof.

            

    

    

    
      	 	
              (vi)

            	
              Jurisdiction.
                Section
                13(b) is hereby amended by: (i) deleting in the second line of
                subparagraph (i) thereof the word "non-", (ii) deleting “; and” from the
                end of subparagraph 1 and inserting “.” in lieu thereof, and (iii)
                deleting the final paragraph
                thereof.

            

    

    

    
      	 	
              (vii)

            	
              Local
                Business Day.
                The definition of Local Business Day in Section 14 is hereby amended
                by
                the addition of the words “or any Credit Support Document” after “Section
                2(a)(i)” and the addition of the words “or Credit Support Document” after
                “Confirmation”. 

            

    

    

    
      	
              (c)

            	
              Additional
                Termination Events.
                The following Additional Termination Events will
                apply:

            

    

    

    
      	
            	(i)	
              First
                Rating Trigger Collateral.
                If
                (A) it is not the case that a Moody’s Second Trigger Ratings Event has
                occurred and been continuing for 30 or more Local Business Days and
                (B)
                Party
                A has failed to comply with or perform any obligation to be complied
                with
                or performed by Party A in accordance with the Credit Support Annex,
                then
                an Additional Termination Event shall have occurred with respect
                to Party
                A and Party A shall be the sole Affected Party with respect to such
                Additional Termination Event. 

            

    

    

    
      	
            	(ii)	
              Second
                Rating Trigger Replacement.
                If
                (A) a Required Ratings Downgrade Event has occurred and been continuing
                for 30 or more Local Business Days and (B) (i) at least one Eligible
                Replacement has made a Firm Offer to be the transferee of all of
                Party A’s
                rights and obligations under this Agreement (and such Firm Offer
                remains
                an offer that will become legally binding upon such Eligible Replacement
                upon acceptance by the offeree) and/or (ii) an Eligible Guarantor
                has made
                a Firm Offer to provide an Eligible Guarantee (and such Firm Offer
                remains
                an offer that will become legally binding upon such Eligible Guarantor
                immediately upon acceptance by the offeree), then an Additional
                Termination Event shall have occurred with respect to Party A and
                Party A
                shall be the sole Affected Party with respect to such Additional
                Termination Event. 

            

    

    
      

      
        
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            	(iii)	
              Amendment
                of Pooling and Servicing Agreement.
                If, without the prior written consent of Party A where such consent
                is
                required under the Pooling and Servicing Agreement (such consent
                not to be
                unreasonably withheld), an amendment is made to the Pooling and Servicing
                Agreement which amendment could reasonably be expected to have a
                material
                adverse effect on the interests of Party A (excluding, for the avoidance
                of doubt, any amendment to the Pooling and Servicing Agreement that
                is
                entered into solely for the purpose of appointing a successor servicer,
                master servicer, securities administrator, trustee or other service
                provider) under the Credit Support Annex, an Additional Termination
                Event
                shall have occurred with respect to Party B and Party B shall be
                the sole
                Affected Party with respect to such Additional Termination Event.
                

            

    

    

    
      	 	
              (iv)

            	
              Failure
                to Comply with Regulation AB Requirements. If,
                upon the occurrence of a Disclosure Event (as defined in Part 5(e)
                below)
                Party A has not complied with any of the provisions set forth in
                clause
                (iii) of Part 5(e) below, then an Additional Termination Event shall
                have
                occurred with respect to Party A and Party A shall be the sole Affected
                Party with respect to such Additional Termination
                Event.

            

    

    

    
      	 	
              (v)

            	
              Optional
                Termination of Securitization. An
                Additional Termination Event shall occur upon the notice to
                Certificateholders of an Optional Termination becoming unrescindable
                in
                accordance with Article X of the Pooling and Servicing Agreement.
                Party B
                shall be the sole Affected Party with respect to such Additional
                Termination Event; provided, however, that notwithstanding anything
                to the
                contrary in Section 6(b)(iv), only Party B may designate an Early
                Termination Date in respect of this Additional Termination
                Event.

            

    

    

    

    
      	
              (d)

            	
              Required
                Ratings Downgrade Event.
                In
                the event that no Relevant Entity has credit ratings at least equal
                to the
                Required Ratings Threshold, then Party A shall, as soon as reasonably
                practicable and so long as a Required Ratings Downgrade Event is
                in
                effect, at its own expense, using commercially reasonable efforts,
                procure
                either (A) a Permitted Transfer or (B) an Eligible
                Guarantee.

            

    

    

    
      	(e)   	
              Compliance
                with Regulation AB. 

            

    

    

    (i) Party
      A
      agrees and acknowledges that Ace Securities Corp. (“ACE”) is required under
      Regulation AB under the Securities Act of 1933, as amended, and the Securities
      Exchange Act of 1934, as amended (the “Exchange Act”) (“Regulation AB”), to
      disclose certain financial information regarding Party A or its group of
      affiliated entities, if applicable, depending on the aggregate “significant
      percentage” of this Agreement and any other derivative contracts between Party A
      or its group of affiliated entities, if applicable, and Counterparty, as
      calculated from time to time in accordance with Item 1115 of Regulation
      AB.

    

    (ii) It
      shall
      be a swap disclosure event (“Swap Disclosure Event”) if, on any Business Day
      after the date hereof, ACE requests from Party A the applicable financial
      information described in Item 1115 of Regulation AB (such request to be based
      on
      a reasonable determination by ACE, in good faith, that such information is
      required under Regulation AB) (the “Swap Financial Disclosure”).

    

    (iii)
       Upon
      the
      occurrence of a Swap Disclosure Event, Party A, at its own expense, shall (1)(a)
      either (i) provide to ACE the current Swap Financial Disclosure in an
      EDGAR-compatible format (for example, such information may be provided in
      Microsoft Word® or Microsoft Excel® format but not in .pdf format) or (ii)
      provide written consent to ACE to incorporation by reference of such current
      Swap Financial Disclosure as is filed with the Securities and Exchange
      Commission in the Exchange Act Reports of ACE, (b) if applicable, cause its
      outside accounting firm to provide its consent to filing or incorporation by
      reference in the Exchange Act Reports of ACE of such accounting firm’s report
      relating to their audits of such current Swap Financial Disclosure, and (c)
      provide to ACE any updated Swap Financial Disclosure with respect to Party
      A or
      any entity that consolidates Party A within five days of the release of any
      such
      updated Swap Financial Disclosure; (2) secure
      an
      Eligible Replacement, which entity complies with the requirements of Item 1115
      of Regulation AB, including providing the information contemplated by Part
      5(e)(iii)(1) above, to enter a Replacement Transaction by way of a Permitted
      Transfer or (3) obtain an Eligible Guarantee of Party A’s obligations under this
      Agreement from an affiliate of Party A that is able to comply with the financial
      information disclosure requirements of Item 1115 of Regulation AB, including
      providing the information contemplated by Part 5(e)(iii)(1) above, such that
      disclosure provided in respect of the affiliate will satisfy any disclosure
      requirements applicable to Party A, and cause such affiliate to provide Swap
      Financial Disclosure. If permitted by Regulation AB, any required Swap Financial
      Disclosure may be provided by incorporation by reference from reports filed
      pursuant to the Exchange Act.

    
      

      
        
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    (iv) Party
      A
      and the primary obligor under any Credit Support Document agree that, in the
      event that Party A provides Swap Financial Disclosure to ACE in accordance
      with
      Part 5(e)(iii)(a) or causes its affiliate to provide Swap Financial Disclosure
      to ACE in accordance with Part 5(e)(iii)(c), Party A and such primary obligor
      will indemnify and hold harmless ACE, its respective directors or officers
      and
      any person controlling ACE, from and against any and all losses, claims, damages
      and liabilities caused by any untrue statement or alleged untrue statement
      of a
      material fact contained in such Swap Financial Disclosure or caused by any
      omission or alleged omission to state in such Swap Financial Disclosure a
      material fact, when considered in conjunction with any other information
      regarding Party A or the derivative instrument being written by Party A in
      the
      final prospectus for ACE-2007-HE4, required to be stated therein or necessary
      to
      make the statements therein, in light of the circumstances under which they
      were
      made, not misleading.

    

    (v)
      Third
      Party Beneficiary. ACE shall be an express third party beneficiary of this
      Agreement as if a party hereto to the extent of ACE’s rights explicitly
      specified herein.

    

    

    
      	
              (f)

            	
              Transfers. 

            

    

     

    
      	
            	(i)	
              Section
                7 is hereby amended to read in its entirety as
                follows:

            

    

     

    “Except
      with respect to any Permitted Transfer pursuant to Section 6(b)(ii), Part 5(d),
      and Part 5(e), or the succeeding sentence, neither Party A nor Party B is
      permitted to assign, novate or transfer (whether by way of security or
      otherwise) as a whole or in part any of its rights, obligations or interests
      under the Agreement or any Transaction unless (a) the prior written consent
      of
      the other party is obtained and (b) each Rating Agency has been given prior
      written notice of such transfer. At any time at which no Relevant Entity has
      credit ratings at least equal to the Approved Ratings Threshold, Party A may
      make a Permitted Transfer.” 

     

    
      	 	
              (ii)

            	
              If
                an Eligible Replacement has made a Firm Offer (which remains an offer
                that
                will become legally binding upon acceptance by Party B) to be the
                transferee pursuant to a Permitted Transfer, Party B shall, at Party
                A’s
                written request and at Party A’s expense, take any reasonable steps
                required to be taken by Party B to effect such transfer.
                

            

    

     

    
      	
              (g)

            	
              [Reserved]

            

    

    

    
      	
              (h)

            	
              Timing
                of Payments
                by Party B upon Early Termination.
                Notwithstanding anything to the contrary in Section 6(d)(ii), to
                the
                extent that all or a portion (in either case, the “Unfunded Amount”) of
                any amount that is calculated as being due in respect of any Early
                Termination Date under Section 6(e) from Party B to Party A will
                be paid
                by Party B from amounts other than any upfront payment paid to Party
                B by
                an Eligible Replacement that has entered a Replacement Transaction
                with
                Party B, then such Unfunded Amount shall be due on the next subsequent
                Distribution Date following the date on which the payment would have
                been
                payable as determined in accordance with Section 6(d)(ii), and on
                any
                subsequent Distribution Dates until paid in full (or if such Early
                Termination Date is the final Distribution Date, on such final
                Distribution Date); provided, however, that if the date on which
                the
                payment would have been payable as determined in accordance with
                Section
                6(d)(ii) is a Distribution Date, such payment will be payable on
                such
                Distribution Date.

            

    

    
      

      
        
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              (i)

            	
              Rating
                Agency Notifications. Notwithstanding
                any other provision of this Agreement, no Early Termination Date
                shall be
                effectively designated hereunder by Party B and no transfer of any
                rights
                or obligations under this Agreement shall be made by either party
                unless
                each Rating Agency has been given prior written notice of such designation
                or transfer. 

            

    

    

    
      	
              (j)

            	
              No
                Set-off.
                Except as expressly provided for in Section 2(c), Section 6 or Part
                1(f)(i)(D) hereof, and notwithstanding any other provision of this
                Agreement or any other existing or future agreement, each party
                irrevocably waives any and all rights it may have to set off, net,
                recoup
                or otherwise withhold or suspend or condition payment or performance
                of
                any obligation between it and the other party hereunder against any
                obligation between it and the other party under any other agreements.
                Section 6(e) shall be amended by deleting the following sentence:
“The
                amount, if any, payable in respect of an Early Termination Date and
                determined pursuant to this Section will be subject to any
                Set-off.”.

            

    

     

    
      	
              (k)

            	
              Amendment.
                Notwithstanding any provision to the contrary in this Agreement,
                no
                amendment of either this Agreement or any Transaction under this
                Agreement
                shall be permitted by either party unless each of the Rating Agencies
                has
                been provided prior written notice of the
                same.

            

    

    

    
      	
              (l)

            	
              Notice
                of Certain Events or Circumstances.
                Each Party agrees, upon learning of the occurrence or existence of
                any
                event or condition that constitutes (or that with the giving of notice
                or
                passage of time or both would constitute) an Event of Default or
                Termination Event with respect to such party, promptly to give the
                other
                Party and to each Rating Agency notice of such event or condition;
                provided that failure to provide notice of such event or condition
                pursuant to this Part 5(l) shall not constitute an Event of Default
                or a
                Termination Event.

            

    

     

    
      	(m)   	
              Proceedings.
                No
                Relevant Entity shall institute against, or cause any other person
                to
                institute against, or join any other person in instituting against
                Party B
                or the trust formed pursuant to the Pooling and Servicing Agreement,
                in
                any bankruptcy, reorganization, arrangement, insolvency or liquidation
                proceedings or other proceedings under any federal or state bankruptcy
                or
                similar law for a period of one year (or, if longer, the applicable
                preference period) and one day following payment in full of the
                Certificates and any Notes. This provision will survive the termination
                of
                this Agreement. 

            

    

    

    
      	
              (n)

            	
              Trustee
                Liability Limitations.
                It
                is expressly understood and agreed by the parties hereto that (a)
                this
                Agreement is executed by HSBC Bank USA, National Association (“HSBC”)
                not in its individual capacity, but solely as Trustee under the Pooling
                and Servicing Agreement in the exercise of the powers and authority
                conferred and invested in it thereunder; (b) HSBC has been directed
                pursuant to the Pooling and Servicing Agreement to enter into this
                Agreement and to perform its obligations hereunder; (c) each of the
                representations, undertakings and agreements herein made on behalf
                of
                Party B is made and intended not as personal representations of HSBC
                but
                is made and intended for the purpose of binding only Party B; and
                (d)
                under no circumstances shall HSBC
                in its individual capacity be personally liable for any payments
                hereunder
                or for the breach or failure of any obligation, representation, warranty
                or covenant made or undertaken under this
                Agreement.

            

    

    

    
      	
              (o)

            	
              Severability.
                If
                any term, provision, covenant, or condition of this Agreement, or
                the
                application thereof to any party or circumstance, shall be held to
                be
                invalid or unenforceable (in whole or in part) in any respect, the
                remaining terms, provisions, covenants, and conditions hereof shall
                continue in full force and effect as if this Agreement had been executed
                with the invalid or unenforceable portion eliminated, so long as
                this
                Agreement as so modified continues to express, without material change,
                the original intentions of the parties as to the subject matter of
                this
                Agreement and the deletion of such portion of this Agreement will
                not
                substantially impair the respective benefits or expectations of the
                parties; provided, however, that this severability provision shall
                not be
                applicable if any provision of Section 2, 5, 6, or 13 (or any definition
                or provision in Section 14 to the extent it relates to, or is used
                in or
                in connection with any such Section) shall be so held to be invalid
                or
                unenforceable. 

            

    

    

    The
      parties shall endeavor to engage in good faith negotiations to replace any
      invalid or unenforceable term, provision, covenant or condition with a valid
      or
      enforceable term, provision, covenant or condition, the economic effect of
      which
      comes as close as possible to that of the invalid or unenforceable term,
      provision, covenant or condition. 

    
      
        

        
          
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              (p)

            	
              Agent
                for Party B. Party
                A acknowledges that the Depositor has appointed
                the Trustee
                and the Securities Administrator as its agents under the Pooling
                and
                Servicing Agreement to carry out certain functions on behalf of Party
                B,
                and that the Trustee and Securities Administrator shall be entitled
                to
                give notices and to perform and satisfy the obligations of Party
                B
                hereunder on behalf of Party B.

            

    

     

    
      	
              (q)

            	
              Escrow
                Payments.
                If
                (whether by reason of the time difference between the cities in which
                payments are to be made or otherwise) it is not possible for simultaneous
                payments to be made on any date on which both parties are required
                to make
                payments hereunder, either Party may at its option and in its sole
                discretion notify the other Party that payments on that date are
                to be
                made in escrow. In this case deposit of the payment due earlier on
                that
                date shall be made by 2:00 pm (local time at the place for the earlier
                payment) on that date with an escrow agent selected by the notifying
                party, accompanied by irrevocable payment instructions (i) to release
                the
                deposited payment to the intended recipient upon receipt by the escrow
                agent of the required deposit of any corresponding payment payable
                by the
                other party on the same date accompanied by irrevocable payment
                instructions to the same effect or (ii) if the required deposit of
                the
                corresponding payment is not made on that same date, to return the
                payment
                deposited to the party that paid it into escrow. The party that elects
                to
                have payments made in escrow shall pay all costs of the escrow
                arrangements.

            

    

     

    
      	
              (r)

            	
              Consent
                to Recording.
                Each party hereto consents to the monitoring or recording, at any
                time and
                from time to time, by the other party of any and all communications
                between trading, marketing, and operations personnel of the parties
                and
                their Affiliates, waives any further notice of such monitoring or
                recording, and agrees to notify such personnel of such monitoring
                or
                recording. 

            

    

    

    
      	
              (s)

            	
              Waiver
                of Jury Trial.
                Each party waives any right it may have to a trial by jury in respect
                of
                any suit, action or proceeding relating to this Agreement or any
                Credit
                Support Document. 

            

    

    

    
      	
              (t)

            	
              Form
                of ISDA Master Agreement. Party
                A and Party B hereby agree that the text of the body of the ISDA
                Master
                Agreement is intended to be the printed form of the ISDA Master Agreement
                (Multicurrency -
                Crossborder) as published and copyrighted in 1992 by the International
                Swaps and Derivatives Association,
                Inc.

            

    

    

    
      	
              (u)

            	
              Payment
                Instructions.
                Party A hereby agrees that, unless notified in writing by Party B
                of other
                payment instructions, any and all amounts payable by Party A to Party
                B
                under this Agreement shall be paid to the account specified in Item
                4 of
                this Confirmation, below. 

            

    

    

    
      	
              (v)

            	
              Additional
                representations.

            

    

    

    
      	 	
              (i)

            	
              Representations
                of Party A.
                Party A represents to Party B on the date on which Party A enters
                into
                each Transaction that:--

            

    

     

    Party
      A’s
      obligations under this Agreement rank pari passu with all of Party A’s other
      unsecured, unsubordinated obligations except those obligations preferred by
      operation of law.

    

    
      	 	
              (ii)

            	
              Capacity.
                Party A represents to Party B on the date on which Party A enters
                into
                this Agreement that it is entering into the Agreement and the Transaction
                as principal and not as agent of any person. The Trustee represents
                to
                Party A on the date on which the Trustee executes this Agreement
                that it
                is executing the Agreement in its capacity as the Trustee pursuant
                to the
                Pooling and Servicing Agreement.

            

    

     

    
      	
              (w)

            	
              Acknowledgements.

            

    

    

    
      	 	
              (i)

            	
              Substantial
                financial transactions.
                Each party hereto is hereby advised and acknowledges as of the date
                hereof
                that the other party has engaged in (or refrained from engaging in)
                substantial financial transactions and has taken (or refrained from
                taking) other material actions in reliance upon the entry by the
                parties
                into the Transaction being entered into on the terms and conditions
                set
                forth herein and in the Pooling and Servicing Agreement relating
                to such
                Transaction, as applicable. This paragraph shall be deemed repeated
                on the
                trade date of each Transaction.

            

    

    
      
        

        
          
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              (ii)

            	
              Bankruptcy
                Code.
                Subject to Part 5(m), without limiting the applicability if any,
                of any
                other provision of the U.S. Bankruptcy Code as amended (the “Bankruptcy
                Code”) (including without limitation Sections 362, 546, 556, and 560
                thereof and the applicable definitions in Section 101 thereof), the
                parties acknowledge and agree that all Transactions entered into
                hereunder
                will constitute “forward contracts” or “swap agreements” as defined in
                Section 101 of the Bankruptcy Code or “commodity contracts” as defined in
                Section 761 of the Bankruptcy Code, that the rights of the parties
                under
                Section 6 of this Agreement will constitute contractual rights to
                liquidate Transactions, that any margin or collateral provided under
                any
                margin, collateral, security, pledge, or similar agreement related
                hereto
                will constitute a “margin payment” as defined in Section 101 of the
                Bankruptcy Code, and that the parties are entities entitled to the
                rights
                under, and protections afforded by, Sections 362, 546, 556, and 560
                of the
                Bankruptcy Code.

            

    

     

    
      	
              (x)

            	
              Limitation
                on Events of Default.
                Notwithstanding the provisions of Sections 5 and 6, with respect
                to any
                Transaction, if at any time and so long as Party B has satisfied
                in full
                all its payment obligations under Section 2(a)(i) in respect of each
                Transaction hereunder and has at the time no future payment obligations,
                whether absolute or contingent, under such Section in respect of
                such
                Transaction, then unless Party A is required pursuant to appropriate
                proceedings to return to Party B or otherwise returns to Party B
                upon
                demand of Party B any portion of any such payment in respect of such
                Transaction, (a) the occurrence of an event described in Section
                5(a) with
                respect to Party B shall not constitute an Event of Default or Potential
                Event of Default with respect to Party B as Defaulting Party in respect
                of
                such Transaction and (b) Party A shall be entitled to designate an
                Early
                Termination Date pursuant to Section 6 in respect of such Transaction
                only
                as a result of the occurrence of a Termination Event set forth in
                either
                Section 5(b)(i) or 5(b)(ii) with respect to Party A as the Affected
                Party,
                or Section 5(b)(iii) with respect to Party A as the Burdened Party.
                For
                purposes of each Transaction identified by reference number in the
                preceding sentence, Party A acknowledges and agrees that Party B’s only
                payment obligation under Section 2(a)(i) in respect of such Transaction
                is
                to pay the related Fixed Amount on the related Fixed Rate Payer Payment
                Date.

            

    

     

    
      	
              (y)

            	
              [Reserved]

            

    

     

    (z) Additional
      Definitions. 

     

    As
      used
      in this Agreement, the following terms shall have the meanings set forth below,
      unless the context clearly requires otherwise: 

     

    “Approved
      Ratings Threshold”
      means
      each of the S&P Approved Ratings Threshold and the Moody’s First Trigger
      Ratings Threshold.

    

    “Approved
      Replacement” means,
      with respect to a Market Quotation, an entity making such Market Quotation,
      which entity would satisfy conditions (a), (b), (c) and (e) of the definition
      of
      Permitted Transfer (as determined by Party B in its sole discretion, acting
      in a
      commercially reasonable manner) if such entity were a Transferee, as defined
      in
      the definition of Permitted Transfer.

    

    “Derivative
      Provider Trigger Event”
      means
      (i) an Event of Default with respect to which Party A is a Defaulting Party,
      (ii) a Termination Event with respect to which Party A is the sole Affected
      Party or (iii) an Additional Termination Event with respect to which Party
      A is
      the sole Affected Party.

    

    “Eligible
      Guarantee”
      means an
      unconditional and irrevocable guarantee of all present and future obligations
      (for the avoidance of doubt, not limited to payment obligations) of Party A
      or
      an Eligible Replacement to Party B under this Agreement that is provided by
      an
      Eligible Guarantor as principal debtor rather than surety and that is directly
      enforceable by Party B, the form and substance of which guarantee are provided
      in advance to Moody’s and S&P, and either (A) a law firm has given a legal
      opinion confirming that none of the guarantor’s payments to Party B under such
      guarantee will be subject to Tax
      collected by withholding or
      (B)
      such guarantee provides that, in the event that any of such guarantor’s payments
      to Party B are subject to Tax collected by withholding, such guarantor is
      required to pay such additional amount as is necessary to ensure that the net
      amount actually received by Party B (free and clear of any Tax collected by
      withholding) will equal the full amount Party B would have received had no
      such
      withholding been required.

    
      
        

        
          
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    “Eligible
      Guarantor” means
      an
      entity that (A) has credit ratings from S&P at least equal to the S&P
      Approved Ratings Threshold and (B) has credit ratings from Moody’s at least
      equal to the Moody’s Second Trigger Ratings Threshold, provided, for the
      avoidance of doubt, that an Eligible Guarantee of an Eligible Guarantor with
      credit ratings below the Moody’s First Trigger Ratings Threshold will not cause
      a Collateral Event (as defined in the Credit Support Annex) not to occur or
      continue with respect to Moody’s. 

    

    “Eligible
      Replacement”
      means an
      entity (A) (i) (a) that has credit ratings from S&P at least equal to the
      S&P Approved Ratings Threshold, and (b) has credit ratings from Moody’s at
      least equal to the Moody’s Second Trigger Ratings Threshold, provided, for the
      avoidance of doubt, that an Eligible Replacement with credit ratings below
      the
      Moody’s First Trigger Ratings Threshold will not cause a Collateral Event (as
      defined in the Credit Support Annex) not to occur or continue with respect
      to
      Moody’s, or (ii) the present and future obligations (for the avoidance of doubt,
      not limited to payment obligations) of which entity to Party B under this
      Agreement are guaranteed pursuant to an Eligible Guarantee and (B) that has
      executed an Item 1115 Agreement with the Depositor.

    

    “Firm
      Offer”
      means
      (A) with respect to an Eligible Replacement, a quotation from such Eligible
      Replacement (i) in an amount equal to the actual amount payable by or to Party
      B
      in consideration of an agreement between Party B and such Eligible Replacement
      to replace Party A as the counterparty to this Agreement by way of novation
      or,
      if such novation is not possible, an agreement between Party B and such Eligible
      Replacement to enter into a Replacement Transaction (assuming that all
      Transactions hereunder become Terminated Transactions), and (ii) that
      constitutes an offer by such Eligible Replacement to replace Party A as the
      counterparty to this Agreement or enter a Replacement Transaction that will
      become legally binding upon such Eligible Replacement upon acceptance by Party
      B, and (B) with respect to an Eligible Guarantor, an offer by such Eligible
      Guarantor to provide an Eligible Guarantee that will become legally binding
      upon
      such Eligible Guarantor upon acceptance by the offeree.

    

    “Moody’s”
      means
      Moody’s Investors Service, Inc., or any successor thereto. 

    

    “Moody’s
      First Trigger Ratings Event” means
      that no Relevant Entity has credit ratings from Moody’s at least equal to the
      Moody’s First Trigger Ratings Threshold. 

    

    “Moody’s
      First Trigger Ratings
      Threshold” means,
      with respect to Party A, the guarantor under an Eligible Guarantee or an
      Eligible Replacement, (i) if such entity has a short-term unsecured and
      unsubordinated debt rating from Moody’s, a long-term unsecured and
      unsubordinated debt rating or counterparty rating from Moody’s of “A2” and a
      short-term unsecured and unsubordinated debt rating from Moody’s of “Prime-1”,
      or (ii) if such entity does not have a short-term unsecured and unsubordinated
      debt rating or counterparty rating from Moody’s, a long-term unsecured and
      unsubordinated debt rating or counterparty rating from Moody’s of
“A1”.

    

    “Moody’s
      Second Trigger Ratings Event” means
      that no
      Relevant Entity has credit ratings from Moody’s at least equal to the Moody’s
      Second Trigger Ratings Threshold. 

    
      
        

        
          
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    “Moody’s
      Second Trigger Ratings Threshold” means,
      with respect to Party A, the guarantor under an Eligible Guarantee or an
      Eligible Replacement, (i) if such entity has a short-term unsecured and
      unsubordinated debt rating from Moody’s, a long-term unsecured and
      unsubordinated debt rating or counterparty rating from Moody’s of “A3” and a
      short-term unsecured and unsubordinated debt rating from Moody’s of “Prime-2”,
      or (ii) if such entity does not have a short-term unsecured and unsubordinated
      debt rating from Moody’s, a long-term unsecured and unsubordinated debt rating
      or counterparty rating from Moody’s of “A3”.

    

    “Permitted
      Transfer” means
      a
      transfer by novation by Party A pursuant to Section 6(b)(ii), Part 5(d), Part
      5(e), or the second sentence of Section 7 (as amended herein) to a transferee
      (the “Transferee”)
      of all,
      but not less than all, of Party A’s rights, liabilities, duties and obligations
      under this Agreement, with
      respect to which transfer each of the following conditions is
      satisfied:
      (a) the
      Transferee is an Eligible Replacement that is a recognized dealer in interest
      rate swaps organized under the laws of the United States of America or a
      jurisdiction located in the United States of America (or another jurisdiction
      reasonably acceptable to Party B), (b) as of the date of such transfer the
      Transferee would not be required to withhold or deduct on account of Tax from
      any payments under this Agreement or would be required to gross up for such
      Tax
      under Section 2(d)(i)(4), (c) an Event of Default or Termination Event would
      not
      occur as a result of such transfer, (d) Party B has consented in writing to
      the
      transfer, such consent not to be unreasonably withheld, (e) the transfer would
      not give rise to a taxable event or any other adverse Tax consequences to Party
      B or its interest holders, as determined by Party B in its sole discretion,
      (f)
      pursuant to a written instrument (the “Transfer
      Agreement”),
      the
      Transferee acquires and assumes all rights and obligations of Party A under
      the
      Agreement and the relevant Transaction, (g) Party B shall have determined,
      in
      its sole discretion, acting in a commercially reasonable manner, that such
      Transfer Agreement is effective to transfer to the Transferee all, but not
      less
      than all, of Party A’s rights and obligations under the Agreement and all
      relevant Transactions; (h) Party A will be responsible for any costs or expenses
      incurred in connection with such transfer (including any replacement cost of
      entering into a replacement transaction); (i) each Rating Agency has been given
      prior written notice of such transfer; and (j) such transfer otherwise complies
      with the terms of the Pooling and Servicing Agreement.

     

    “Rating
      Agencies”
      means,
      with respect to any date of determination, each of S&P and Moody’s, to the
      extent that each such rating agency is then providing a rating for any of the
      ACE Securities Corp. Home Equity Loan Trust, Series 2007-HE4 Asset Backed
      Pass-Through Certificates (the “Certificates”) or any notes backed by the
      Certificates (the “Notes”).

    

    “Relevant
      Entity” means
      Party A and, to the extent applicable, a guarantor under an Eligible
      Guarantee.

    

    “Replacement
      Transaction”
      means,
      with respect to any Terminated Transaction or group of Terminated Transactions,
      a transaction or group of transactions that (i) would have the effect of
      preserving for Party B the economic equivalent of any payment or delivery
      (whether the underlying obligation was absolute or contingent and assuming
      the
      satisfaction of each applicable condition precedent) by the parties under
      Section 2(a)(i) in respect of such Terminated Transaction or group of Terminated
      Transactions that would, but for the occurrence of the relevant Early
      Termination Date, have been required after that Date, and (ii) has terms which
      are substantially the same as this Agreement, including, without limitation,
      rating triggers, Regulation AB compliance, and credit support documentation,
      save for the exclusion of provisions relating to Transactions that are not
      Terminated Transactions, as determined by Party B in its sole discretion, acting
      in a commercially reasonable manner.

    

    “Required
      Ratings Downgrade Event”
      means
      that no Relevant Entity has credit ratings at least equal to the Required
      Ratings Threshold. 

    
      
        

        
          
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    “Required
      Ratings Threshold” means
      each of the S&P Required Ratings Threshold and the Moody’s Second Trigger
      Ratings Threshold.

    

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

    

    “S&P
      Approved Ratings Threshold”
      means,
      with respect to Party A, the guarantor under an Eligible Guarantee or an
      Eligible Replacement, a short-term unsecured and unsubordinated debt rating
      from
      S&P of “A-1”, or, if such entity does not have a short-term unsecured and
      unsubordinated debt rating from S&P, a long-term unsecured and
      unsubordinated debt rating or counterparty rating from S&P of
“A+”.

    

    “S&P
      Required Ratings Threshold”
      means,
      with respect to Party A, the guarantor under an Eligible Guarantee or an
      Eligible Replacement, a long-term unsecured and unsubordinated debt rating
      or
      counterparty rating from S&P of “BBB+”. 

    

    [Remainder
      of this page intentionally left blank.]

    
      
        

        
          
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      	4.   	
              Account
                Details and Settlement
                Information: 

            

    

     

    
      
        	
                Payments
                  to Party A:

              	
                Account
                  with bank:

              
	 	
                DB
                  Trust Co Americas

              
	 	
                ABA
                  021001033

              
	 	
                BKTRUS33

              
	 	 
	 	
                Beneficiary:

              
	 	
                Deutsche
                  Bank AG New York

              
	 	
                a/c:
                  01473969 

              
	 	
                Global
                  No. N606257N

              
	 	 
	
                Payments
                  to Party B:

              	
                Wells
                  Fargo Bank, N.A.

              
	 	
                ABA
                  # 121000248

              
	 	
                Account
                  Name: Corporate Trust Clearing

              
	 	
                Account
                  # 3970771416

              
	 	
                FFC
                  to: ACE 2007-HE4 Reserve Acct #
                  53147601

              

      

    

     

    This
      Agreement may be executed in several counterparts, each of which shall be deemed
      an original but all of which together shall constitute one and the same
      instrument.

    
      
        
          

          
            
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    We
      are
      very pleased to have executed this Transaction with you and we look forward
      to
      completing other transactions with you in the near future.

    

    Very
      truly yours,

    

    DEUTCSHE
      BANK AG, NEW YORK BRANCH

    

    

    

    By: 
      /s/
      Christopher Flanagan   

     
      Christopher Flanagan 

     
      Authorized Signatory

    

    Party
      B,
      acting through its duly authorized signatory, hereby agrees to, accepts and
      confirms the terms of the foregoing as of the date hereof.

    

    HSBC
      Bank USA, National Association, not in its individual capacity, but solely
      as
      Trustee for the ACE Securities Corp. Home Equity Loan Trust, Series 2007-HE4
      Asset Backed Pass-Through Certificates

    

    By: /s/
      Fernando Acebedo

     Fernando
      Acebedo

     Vice
      President

    

    
      
        Global
          No. N606257N

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Page 25
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    SCHEDULE
      I

    (all
      such
      dates subject to adjustment in accordance with the Following Business Day
      Convention with respect to Floating Rate Payer Period End Dates)

    

    
      	
              From
                and including

            	
              To
                but excluding

            	
              Notional
                Amount (USD)

            
	
              Effective
                Date

            	
              5/25/2007

            	
              612,334,844.00

            
	
              5/25/2007

            	
              6/25/2007

            	
              606,716,719.00

            
	
              6/25/2007

            	
              7/25/2007

            	
              600,045,264.00

            
	
              7/25/2007

            	
              8/25/2007

            	
              592,331,774.00

            
	
              8/25/2007

            	
              9/25/2007

            	
              583,593,456.00

            
	
              9/25/2007

            	
              Termination
                Date

            	
              573,854,289.00

            

    

     

     

    
      
        Global
          No. N606257N

        
        

      

      
        
        

        
          

        

      

      
        
        

      

      Page 26
of
        26

       

    

    Annex
      A

    

    Paragraph
      13 of the Credit Support Annex

     

     

     

    
      
        Global
          No. N606257N

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

      ANNEX
        A

      

      ISDA®

      CREDIT
        SUPPORT ANNEX

      to
        the
        Schedule to the

      ISDA
        Master Agreement

      dated
        as
        of April 30, 2007 
        between

      Deutsche
        Bank AG (hereinafter referred to as “Party
        A”
        or
“Pledgor”)

      and

      HSBC
        Bank
        USA, National Association, not in its individual capacity, but solely as
        Trustee
        for the ACE Securities Corp. Home Equity Loan Trust, Series 2007-HE4 Asset
        Backed Pass-Through Certificates
        (hereinafter referred to as “Party
        B”
        or
“Secured
        Party”).

      

      For
        the
        avoidance of doubt, and notwithstanding anything to the contrary that may
        be
        contained in the Agreement, this Credit Support Annex shall relate solely
        to the
        Transaction documented in the Confirmation dated April 30, 2007, between
        Party A
        and Party B, Global No. N606257N.

       

      Paragraph
        13. Elections and Variables.

       

      
        	(a)   	
                Security
                  Interest for “Obligations”.
                  The term “Obligations”
                  as
                  used in this Annex includes the following additional
                  obligations:

              

      

       

      With
        respect to Party A: not applicable.

       

      With
        respect to Party B: not applicable.

       

      
        	(b)   	
                Credit
                  Support Obligations.

              

      

       

      
        	
              	(i)	
                Delivery
                  Amount, Return Amount and Credit Support
                  Amount.

              

      

       

      
        	
              	(A)	
                “Delivery
                  Amount”
                  has the meaning specified in Paragraph 3(a) as amended (I) by deleting
                  the
                  words “upon a demand made by the Secured Party on or promptly following
                  a
                  Valuation Date” and inserting in lieu thereof the words “not later than
                  the close of business on each Valuation Date” and (II) by deleting in its
                  entirety the sentence beginning “Unless otherwise specified in Paragraph
                  13” and ending “(ii) the Value as of that Valuation Date of all Posted
                  Credit Support held by the Secured Party.” and inserting in lieu thereof
                  the following:

              

      

       

      The
        “Delivery
        Amount”
        applicable to the Pledgor for any Valuation Date will equal the greatest
        of

       

      
        	 	
                (1)
                  

              	
                the
                  amount by which (a) the S&P Credit Support Amount for such Valuation
                  Date exceeds (b) the S&P Value as of such Valuation Date of all Posted
                  Credit Support held by the Secured Party,

              

      

       

      
        	 	
                (2)
                  

              	
                the
                  amount by which (a) the Moody’s First Trigger Credit Support Amount for
                  such Valuation Date exceeds (b) the Moody’s First Trigger Value as of such
                  Valuation Date of all Posted Credit Support held by the Secured
                  Party,
                  and

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          Global
            No. N606257N

        

      

       

      
        	 	
                (3)
                  

              	
                the
                  amount by which (a) the Moody’s Second Trigger Credit Support Amount for
                  such Valuation Date exceeds (b) the Moody’s Second Trigger Value as of
                  such Valuation Date of all Posted Credit Support held by the Secured
                  Party.

              

      

       

      
        	
              	(B)	
                “Return
                  Amount”
                  has the meaning specified in Paragraph 3(b) as amended by deleting
                  in its
                  entirety the sentence beginning “Unless otherwise specified in Paragraph
                  13” and ending “(ii) the Credit Support Amount.” and inserting in lieu
                  thereof the following:

              

      

       

      The
        “Return
        Amount”
        applicable to the Secured Party for any Valuation Date will equal the least
        of

       

      
        	 	
                (1)
                  

              	
                the
                  amount by which (a) the S&P Value as of such Valuation Date of all
                  Posted Credit Support held by the Secured Party exceeds (b) the
                  S&P
                  Credit Support Amount for such Valuation Date,

              

      

       

      
        	 	
                (2)
                  

              	
                the
                  amount by which (a) the Moody’s First Trigger Value as of such Valuation
                  Date of all Posted Credit Support held by the Secured Party exceeds
                  (b)
                  the Moody’s First Trigger Credit Support Amount for such Valuation Date,
                  and

              

      

       

      
        	 	
                (3)
                  

              	
                the
                  amount by which (a) the Moody’s Second Trigger Value as of such Valuation
                  Date of all Posted Credit Support held by the Secured Party exceeds
                  (b)
                  the Moody’s Second Trigger Credit Support Amount for such Valuation
                  Date.

              

      

       

      
        	
              	(C)	
                “Credit
                  Support Amount”
                  shall not apply. For purposes of calculating any Delivery Amount
                  or Return
                  Amount for any Valuation Date, reference shall be made to the S&P
                  Credit Support Amount, the Moody’s First Trigger Credit Support Amount, or
                  the Moody’s Second Trigger Credit Support Amount, in each case for such
                  Valuation Date, as provided in Paragraphs 13(b)(i)(A) and 13(b)(i)(B),
                  above.

              

      

       

      
        	
              	(ii)	
                Eligible
                  Collateral.
                  

              

      

       

      On
        any
        date, the following items will qualify as “Eligible
        Collateral”
(for
        the avoidance of doubt, all Eligible Collateral to be denominated in
        USD):

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

          Global
            No. N606257N

        

      

       

      
        	
                Collateral
                  

              	 	
                S&P

                Valuation
                  

                Percentage

              	 	
                Moody’s
                  

                First
                  Trigger Valuation
                  Percentage

              	 	
                Moody’s
                  

                Second
                  Trigger Valuation
                  Percentage

              	 
	 	 	 	 	 	 	 	 	 	 	 
	
                (A)  Cash

              	 	 	
                100

              	
                %

              	 	
                100

              	
                %

              	 	
                100

              	
                %

              
	 	 	 	 	 	 	 	 	 	 	 
	
                (B)  Fixed-rate
                  negotiable debt obligations issued by the U.S. Treasury Department
                  having
                  a remaining maturity on such date of not more than one
                  year

              	 	 	
                98.5

              	
                %

              	 	
                100

              	
                %

              	 	
                100

              	
                %

              
	 	 	 	 	 	 	 	 	 	 	 
	
                (C)  Fixed-rate
                  negotiable debt obligations issued by the U.S. Treasury Department
                  having
                  a remaining maturity on such date of more than one year but not
                  more than
                  ten years

              	 	 	
                89.9

              	
                %

              	 	
                100

              	
                %

              	 	
                94

              	
                %

              
	 	 	 	 	 	 	 	 	 	 	 
	
                (D)  Fixed-rate
                  negotiable debt obligations issued by the U.S. Treasury Department
                  having
                  a remaining maturity on such date of more than ten years

              	 	 	
                83.9

              	
                %

              	 	
                100

              	
                %

              	 	
                87

              	
                %

              

      

      

       

      
        	
              	(iii)	
                Other
                  Eligible Support. 

              

      

       

      The
        following items will qualify as “Other
        Eligible Support”
        for the
        party specified: 

       

      Not
        applicable.

       

      
        	
              	(iv)	
                Threshold.

              

      

       

      
        	
              	(A)	
                “Independent
                  Amount”
                  means zero with respect to Party A and Party
                  B.

              

      

       

      
        	
              	(B)	
                “Threshold”
                  means, with respect to Party A and any Valuation Date, zero if
                  (i) a
                  Collateral Event has occurred and has been continuing (x) for at
                  least 30
                  days or (y) since this Annex was executed, or (ii) a Required Ratings
                  Downgrade Event has occurred and is continuing; otherwise,
                  infinity.

              

      

       

      
        
          “Threshold”
            means,
            with respect to Party B and any Valuation Date,
            infinity.

        

      

       

      
        	
              	(C)	
                “Minimum
                  Transfer Amount” means
                  USD 100,000 with respect to Party A and Party B; provided, however,
                  that
                  if the aggregate Certificate Principal Balance of the Certificates
                  and the
                  aggregate principal balance of any Notes rated by S&P is at the time
                  of any transfer less than USD 50,000,000, the “Minimum
                  Transfer Amount”
                  shall be USD 50,000.

              

      

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

          Global
            No. N606257N

        

      

       

      
        	
              	(D)	
                Rounding:
                  The Delivery Amount will be rounded up to the nearest integral
                  multiple of
                  USD 10,000. The Return Amount will be rounded down to the nearest
                  integral
                  multiple of USD 10,000.

              

      

       

      
        	(c)   	
                Valuation
                  and Timing.

              

      

       

      
        	
              	(i)	
                “Valuation
                  Agent”
                  means Party A; provided, however, that if an Event of Default shall
                  have
                  occurred with respect to which Party A is the Defaulting Party,
                  Party B
                  shall have the right to designate as Valuation Agent an independent
                  party,
                  reasonably acceptable to Party A, the cost for which shall be borne
                  by
                  Party A. All calculations by the Valuation Agent must be made in
                  accordance with standard market practice, including, in the event
                  of a
                  dispute as to the Value of any Eligible Credit Support or Posted
                  Credit
                  Support, by making reference to quotations received by the Valuation
                  Agent
                  from one or more Pricing Sources.

              

      

       

      
        	
              	(ii)	
                “Valuation
                  Date” means
                  the first Local Business Day in each week on which any of the S&P
                  Credit Support Amount, the Moody’s First Trigger Credit Support Amount or
                  the Moody’s Second Trigger Credit Support Amount is greater than
                  zero.

              

      

       

      
        	
              	(iii)	
                “Valuation
                  Time” means
                  the close of business in the city of the Valuation Agent on the
                  Local
                  Business Day immediately preceding the Valuation Date or date of
                  calculation, as applicable; provided
                  that the calculations of Value and Exposure will be made as of
                  approximately the same time on the same date.

              

      

       

      
        	
              	(iv)	
                “Notification
                  Time” means
                  11:00 a.m., New York time, on a Local Business Day.
                  

              

      

       

      
        	
              	(v)	
                External
                  Verification.
                  Notwithstanding anything to the contrary in the definitions of
                  Valuation
                  Agent or Valuation Date, at any time at which Party A (or, to the
                  extent
                  applicable, its Credit Support Provider) does not have a long-term
                  unsubordinated and unsecured debt rating of at least “BBB+” from S&P,
                  the Valuation Agent shall (A) calculate the Secured Party’s Exposure and
                  the S&P Value of Posted Credit Support on each Valuation Date based on
                  internal marks and (B) verify such calculations with external marks
                  monthly by obtaining on the last Local Business Day of each calendar
                  month
                  two external marks for each Transaction to which this Annex relates
                  and
                  for all Posted Credit Support; such verification of the Secured
                  Party’s
                  Exposure shall be based on the higher of the two external marks.
                  Each
                  external mark in respect of a Transaction shall be obtained from
                  an
                  independent Reference Market-maker that would be eligible and willing
                  to
                  enter into such Transaction in the absence of the current derivative
                  provider, provided that an external mark may not be obtained from
                  the same
                  Reference Market-maker more than four times in any 12-month period.
                  The
                  Valuation Agent shall obtain these external marks directly or through
                  an
                  independent third party, in either case at no cost to Party B.
                  The
                  Valuation Agent shall calculate on each Valuation Date (for purposes
                  of
                  this paragraph, the last Local Business Day in each calendar month
                  referred to above shall be considered a Valuation Date) the Secured
                  Party’s Exposure based on the greater of the Valuation Agent’s internal
                  marks and the external marks received. If the S&P Value on any such
                  Valuation Date of all Posted Credit Support then held by the Secured
                  Party
                  is less than the S&P Credit Support Amount on such Valuation Date (in
                  each case as determined pursuant to this paragraph), Party A shall,
                  within
                  three Local Business Days of such Valuation Date, Transfer to the
                  Secured
                  Party Eligible Credit Support having an S&P Value as of the date of
                  Transfer at least equal to such deficiency.

              

      

       

      
        	
              	(vi)	
                Notice
                  to S&P.
                  At
                  any time at which Party A (or, to the extent applicable, its Credit
                  Support Provider) does not have a long-term unsubordinated and
                  unsecured
                  debt rating of at least “BBB+” from S&P, the Valuation Agent shall
                  provide to S&P not later than the Notification Time on the Local
                  Business Day following each Valuation Date its calculations of
                  the Secured
                  Party’s Exposure and the S&P Value of any Eligible Credit Support or
                  Posted Credit Support for that Valuation Date. The Valuation Agent
                  shall
                  also provide to S&P any external marks received pursuant to the
                  preceding paragraph.

              

      

       

      
        
          
          

        

        
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          Global
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        	(d)   	
                Conditions
                  Precedent and Secured Party’s Rights and
                  Remedies.
                  The following Termination Events will be a “Specified
                  Condition”
                  for the party specified (that party being the Affected Party if
                  the
                  Termination Event occurs with respect to that party): With respect
                  to
                  Party A: any Additional Termination Event with respect to which
                  Party A is
                  the sole Affected Party. With respect to Party B:
                  None.

              

      

       

      
        	(e)   	
                Substitution.

              

      

       

      
        	
              	(i)	
                “Substitution
                  Date”
                  has the meaning specified in Paragraph
                  4(d)(ii).

              

      

       

      
        	
              	(ii)	
                Consent.
                  If
                  specified here as applicable, then the Pledgor must obtain the
                  Secured
                  Party’s consent for any substitution pursuant to Paragraph 4(d):
                  Inapplicable.

              

      

       

      
        	(f)   	
                Dispute
                  Resolution.

              

      

       

      
        	
              	(i)	
                “Resolution
                  Time”
                  means 1:00 p.m. New York time on the Local Business Day following
                  the date
                  on which the notice of the dispute is given under Paragraph
                  5.

              

      

       

      
        	
              	(ii)	
                Value.
                  Notwithstanding anything to the contrary in Paragraph 12, for the
                  purpose
                  of Paragraphs 5(i)(C) and 5(ii), the S&P Value, Moody’s First Trigger
                  Value, and Moody’s Second Trigger Value, on any date, of Eligible
                  Collateral other than Cash will be calculated as follows:
                  

              

      

       

      For
        Eligible Collateral in the form of securities listed in Paragraph 13(b)(ii):
        the
        sum of (A) the product of (1)(x) the bid price at the Valuation Time for
        such
        securities on the principal national securities exchange on which such
        securities are listed, or (y) if such securities are not listed on a national
        securities exchange, the bid price for such securities quoted at the Valuation
        Time by any principal market maker for such securities selected by the Valuation
        Agent, or (z) if no such bid price is listed or quoted for such date, the
        bid
        price listed or quoted (as the case may be) at the Valuation Time for the
        day
        next preceding such date on which such prices were available and (2) the
        applicable Valuation Percentage for such Eligible Collateral, and (B) the
        accrued interest on such securities (except to the extent Transferred to
        the
        Pledgor pursuant to Paragraph 6(d)(ii) or included in the applicable price
        referred to in the immediately preceding clause (A)) as of such
        date.

       

      
        	
              	(iii)	
                Alternative.
                  The provisions of Paragraph 5 will
                  apply.

              

      

       

      
        	(g)   	
                Holding
                  and Using Posted
                  Collateral.

              

      

       

      
        	
              	(i)	
                Eligibility
                  to Hold Posted Collateral; Custodians.  Party
                  B (or any Custodian) will be entitled to hold Posted Collateral
                  pursuant
                  to Paragraph 6(b). 

              

      

       

      Party
        B
        may appoint as Custodian (A) the entity then serving as Securities Administrator
        or (B) any entity other than the entity then serving as Securities Administrator
        if such other entity (or, to the extent applicable, its parent company or
        credit
        support provider) shall then have a short-term unsecured and unsubordinated
        debt
        rating from S&P of at least “A-1.”

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

          Global
            No. N606257N

        

      

       

      Initially,
        the Custodian
        for
        Party B is: Securities Administrator

       

      
        	
              	(ii)	
                Use
                  of Posted Collateral. The
                  provisions of Paragraph 6(c)(i) will not apply to Party B, but
                  the
                  provisions of Paragraph 6(c)(ii) will apply to Party B or its Custodian.
                  Posted
                  Collateral in the form of Cash shall be invested in such overnight
                  (or
                  redeemable within two Local Business Days of demand) Permitted
                  Investments
                  rated at least (x) AAAm or AAAm-G by S&P and (y) Prime-1 by Moody’s or
                  Aaa by Moody’s, as directed by Party A (unless (x) an Event of Default or
                  an Additional Termination Event has occurred with respect to which
                  Party A
                  is the defaulting or sole Affected Party or (y) an Early Termination
                  Date
                  has been designated, in which case such Posted Collateral shall
                  be held
                  uninvested). Gains and losses incurred in respect of any investment
                  of
                  Posted Collateral in the form of Cash in Permitted Investments
                  as directed
                  by Party A shall be for the account of Party A. If no investment
                  direction
                  is received, the Posted Collateral in the form of Cash shall be
                  held
                  uninvested. 

              

      

       

      
        	(h)   	
                Distributions
                  and Interest Amount.

              

      

       

      
        	
              	(i)	
                Interest
                  Rate.
                  The “Interest
                  Rate”
                  will be the actual interest rate earned on Posted Collateral in
                  the form
                  of Cash that is held by Party B or its
                  Custodian.

              

      

       

      
        	
              	(ii)	
                Transfer
                  of Interest Amount.
                  The Transfer of the Interest Amount will be made on the second
                  Local
                  Business Day following the end of each calendar month and on any
                  other
                  Local Business Day on which Posted Collateral in the form of Cash
                  is
                  Transferred to the Pledgor pursuant to Paragraph 3(b); provided,
                  however,
                  that the obligation of Party B to Transfer any Interest Amount
                  to Party A
                  shall be limited to the extent that Party B has earned and received
                  such
                  funds and such funds are available to Party B.

              

      

       

      
        	
              	(iii)	
                Alternative
                  to Interest Amount.
                  The provisions of Paragraph 6(d)(ii) will
                  apply.

              

      

       

      
        	(i)    	
                Additional
                  Representation(s).
                  There are no additional representations by either
                  party.

              

      

       

      
        	(j)    	
                Other
                  Eligible Support and Other Posted Support.

              

      

       

      
        	
              	(i)	
                “Value”
                  with respect to Other Eligible Support and Other Posted Support
                  means: not
                  applicable. 

              

      

       

      
        	
              	(ii)	
                “Transfer”
                  with respect to Other Eligible Support and Other Posted Support
                  means: not
                  applicable.

              

      

       

      
        	(k)   	
                Demands
                  and Notices.All
                  demands, specifications and notices under this Annex will be made
                  pursuant
                  to the Notices Section of this Agreement, except that any demand,
                  specification or notice shall be given to or made at the following
                  addresses, or at such other address as the relevant party may from
                  time to
                  time designate by giving notice (in accordance with the terms of
                  this
                  paragraph) to the other party:

              

      

       

      If
        to
        Party A, at the address specified pursuant to the Notices Section of this
        Agreement.

       

      If
        to
        Party B, at the address specified pursuant to the Notices Section of this
        Agreement.

       

      If
        to
        Party B’s Custodian: 

      

        
          	
                  Address:

                	
                  Wells
                    Fargo Bank, N.A.

                
	 	
                  9062
                    Old Annapolis Road

                
	 	
                  Columbia,
                    MD 21045

                
	
                  Attention:

                	
                  Client
                    Manager Ace 2007-HE4

                
	
                  Tel:

                	
                  410-884-2000

                
	
                  Fax:

                	
                  410-715-2380

                

        

         

        
          
            
            

          

          
            6

            
              

            

          

          
            
            

            Global
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                (l)

              	
                Address
                  for Transfers.
                  Each Transfer hereunder shall be made to the address specified
                  below or to
                  an address specified in writing from time to time by the party
                  to which
                  such Transfer will be made.

              

      

       

      Party
        A
        account details for holding collateral: to be provided by Party A in
        writing.

       

      Party
        B’s
        Custodian account details for holding collateral:

      

        
          	
                  
                    Wells
                      Fargo Bank, N.A.

                    ABA
                      # 121000248

                    Account
                      Name: Corporate Trust Clearing

                    Account
                      # 3970771416

                    FFC
                      to: ACE 2007-HE4 Cap Collateral Account #
                      53147605

                  

                

        

      

      

      
        	(m)   	
                Other
                  Provisions.

              

      

       

      
        	
              	(i)	
                Collateral
                  Account.
                  Party B shall open and maintain a segregated account, which shall
                  be an
                  Eligible Account, and hold, record and identify all Posted Collateral
                  in
                  such segregated account, in accordance with the Pooling and Servicing
                  Agreement. 

              

      

       

      
        	
              	(ii)	
                Agreement
                  as to Single Secured Party and Single Pledgor.
                  Party A and Party B hereby agree that, notwithstanding anything
                  to the
                  contrary in this Annex, (a) the term “Secured Party” as used in this Annex
                  means only Party B, (b) the term “Pledgor” as used in this Annex means
                  only Party A, (c) only Party A makes the pledge and grant in Paragraph
                  2,
                  the acknowledgement in the final sentence of Paragraph 8(a) and
                  the
                  representations in Paragraph 9.

              

      

       

      
        	
              	(iii)	
                Calculation
                  of Value.
                  Paragraph 4(c) is hereby amended by deleting the word “Value” and
                  inserting in lieu thereof “S&P Value, Moody’s First Trigger Value,
                  Moody’s Second Trigger Value”. Paragraph 4(d)(ii) is hereby amended by (A)
                  deleting the words “a Value” and inserting in lieu thereof “an S&P
                  Value, Moody’s First Trigger Value, and Moody’s Second Trigger Value” and
                  (B) deleting the words “the Value” and inserting in lieu thereof “S&P
                  Value, Moody’s First Trigger Value, and Moody’s Second Trigger Value”.
                  Paragraph 5 (flush language) is hereby amended by deleting the
                  word
                  “Value” and inserting in lieu thereof “S&P Value, Moody’s First
                  Trigger Value, or Moody’s Second Trigger Value”. Paragraph 5(i) (flush
                  language) is hereby amended by deleting the word “Value” and inserting in
                  lieu thereof “S&P Value, Moody’s First Trigger Value, and Moody’s
                  Second Trigger Value”. Paragraph 5(i)(C) is hereby amended by deleting the
                  word “the Value, if” and inserting in lieu thereof “any one or more of the
                  S&P Value, Moody’s First Trigger Value, or Moody’s Second Trigger
                  Value, as may be”. Paragraph 5(ii) is hereby amended by (1) deleting the
                  first instance of the words “the Value” and inserting in lieu thereof “any
                  one or more of the S&P Value, Moody’s First Trigger Value, or Moody’s
                  Second Trigger Value” and (2) deleting the second instance of the words
                  “the Value” and inserting in lieu thereof “such disputed S&P Value,
                  Moody’s First Trigger Value, or Moody’s Second Trigger Value”. Each of
                  Paragraph 8(b)(iv)(B) and Paragraph 11(a) is hereby amended by
                  deleting
                  the word “Value” and inserting in lieu thereof “least of the S&P
                  Value, Moody’s First Trigger Value, and Moody’s Second Trigger Value”.
                  

              

      

       

      
        	
              	(iv)	
                Form
                  of Annex. Party
                  A and Party B hereby agree that the text of Paragraphs 1 through
                  12,
                  inclusive, of this Annex is intended to be the printed form of
                  ISDA Credit
                  Support Annex (Bilateral Form - ISDA Agreements Subject to New
                  York Law
                  Only version) as published and copyrighted in 1994 by the International
                  Swaps and Derivatives Association,
                  Inc.

              

      

       

      
        
          
          

        

        
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          Global
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              	(v)	
                Events
                  of Default.
                  Paragraph 7 will not apply to cause any Event of Default to exist
                  with
                  respect to Party B except that Paragraph 7(i) will apply to Party
                  B solely
                  in respect of Party B’s obligations under Paragraph 3(b) of the Credit
                  Support Annex. Notwithstanding anything to the contrary in Paragraph
                  7,
                  any failure by Party A to comply with or perform any obligation
                  to be
                  complied with or performed by Party A under the Credit Support
                  Annex shall
                  only be an Event of Default if (A) Required
                  Ratings Downgrade Event has occurred and been continuing for 30
                  or more
                  Local Business Days, and (B) such failure is not remedied on or
                  before the
                  third Local Business Day after notice of such failure is given
                  to Party
                  A.

              

      

       

      
        	
              	(vi)	
                Expenses.
                  Notwithstanding anything to the contrary in Paragraph 10, the Pledgor
                  will
                  be responsible for, and will reimburse the Secured Party for, all
                  transfer
                  and other taxes and other costs involved in any Transfer of Eligible
                  Collateral.

              

      

       

      
        	
              	(vii)	
                Withholding.
                  Paragraph 6(d)(ii) is hereby amended by inserting immediately after
“the
                  Interest Amount” in the fourth line thereof the words “less any applicable
                  withholding taxes.”

              

      

       

      
        	
              	(viii)	
                Additional
                  Definitions.
                  As used in this Annex:

              

      

       

      “Collateral
        Event” means
        that no Relevant Entity has credit ratings at least equal to the Approved
        Ratings Threshold.

       

      “Exposure”
        has the
        meaning specified in Paragraph 12, except that after the word “Agreement” the
        words “(assuming, for this purpose only, that Part 1(f) of the Schedule is
        deleted)” shall be inserted. 

       

      “Local
        Business Day”
means
        for purposes of this Annex: any day on which (A) commercial banks are open
        for
        business (including dealings in foreign exchange and foreign currency deposits)
        in New York and the location of Party A, Party B and any Custodian, and (B)
        in
        relation to a Transfer of Eligible Collateral, any day on which the clearance
        system agreed between the parties for the delivery of Eligible Collateral
        is
        open for acceptance and execution of settlement instructions (or in the case
        of
        a Transfer of Cash or other Eligible Collateral for which delivery is
        contemplated by other means a day on which commercial banks are open for
        business (including dealings in foreign exchange and foreign deposits) in
        New
        York and the location of Party A, Party B and any Custodian. 

       

      “Moody’s
        First Trigger Credit Support Amount” means,
        for any Valuation Date, the excess, if any, of

       

      
        	 	
                (I)

              	
                (A)

              	
                for
                  any Valuation Date on which (I) a Moody’s First Trigger Ratings Event has
                  occurred and has been continuing (x) for at least 30 Local Business
                  Days
                  or (y) since this Annex was executed and (II) it is not the case
                  that a
                  Moody’s Second Trigger Ratings Event has occurred and been continuing
                  for
                  at least 30 Local Business Days, an amount equal to the greater
                  of (a)
                  zero and (b) the sum of (i) the Secured Party’s Exposure for such
                  Valuation Date and (ii) the sum, for each Transaction to which
                  this Annex
                  relates, of the product of (i) the applicable Moody’s First Trigger Factor
                  set forth in Table 1, (ii) the Scale Factor, if any, for such Transaction,
                  or, if no Scale Factor is applicable for such Transaction, one,
                  (iii) the
                  Notional Amount for such Transaction for the Calculation Period
                  for such
                  Transaction (each as defined in the related Confirmation) which
                  includes
                  such Valuation Date; or 

              

      

       

      
        
          
          

        

        
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                (B)

              	
                for
                  any other Valuation Date, zero,
                  over

              

      

       

      
        	
              	(II)	
                the
                  Threshold for Party A such Valuation
                  Date.

              

      

       

      “Moody’s
        First Trigger Value”
        means,
        on any date and with respect to any Eligible Collateral other than Cash,
        the bid
        price obtained by the Valuation Agent multiplied by the Moody’s First Trigger
        Valuation Percentage for such Eligible Collateral set forth in Paragraph
        13(b)(ii).

       

      “Moody’s
        Second Trigger Event” means
        that no Relevant Entity has credit ratings from Moody’s at least equal to the
        Moody’s Second Trigger Ratings Threshold.

       

      “Moody’s
        Second Trigger Credit Support Amount”
        means,
        for any Valuation Date, the excess, if any, of

       

      
        	 	
                (I)

              	
                (A)

              	
                for
                  any Valuation Date on which it is the case that a Moody’s Second Trigger
                  Ratings Event has occurred and been continuing for at least 30
                  Local
                  Business Days, an amount equal to the greatest of (a) zero, (b)
                  the
                  aggregate amount of the next payment due to be paid by Party A
                  under each
                  Transaction to which this Annex relates, and (c) the sum of (x)
                  the
                  Secured Party’s Exposure for such Valuation Date and (y) the sum, for each
                  Transaction to which this Annex relates, of

              

      

       

      (1)
        if
        such Transaction is not a Transaction-Specific Hedge, the product of (i)
        the
        applicable Moody’s Second Trigger Factor set forth in Table 2, (ii) the Scale
        Factor, if any, for such Transaction, or, if no Scale Factor is applicable
        for
        such Transaction, one, and (iii) the Notional Amount for such Transaction
        for
        the Calculation Period for such Transaction (each as defined in the related
        Confirmation) which includes such Valuation Date;
        or

       

      (2)
        if
        such Transaction is a Transaction-Specific Hedge, the product of (i) the
        applicable Moody’s Second Trigger Factor set forth in Table 3, (ii) the Scale
        Factor, if any, for such Transaction, or, if no Scale Factor is applicable
        for
        such Transaction, one, and (iii) the Notional Amount for such Transaction
        for
        the Calculation Period which includes such Valuation Date; or 

       

      
        	 	
                (B)

              	
                for
                  any other Valuation Date, zero,
                  over

              

      

       

      
        	
              	(II)	
                the
                  Threshold for Party A for such Valuation
                  Date.

              

      

       

      “Moody’s
        Second Trigger Value”
        means,
        on any date and with respect to any Eligible Collateral other than Cash,
        the bid
        price obtained by the Valuation Agent multiplied by the Moody’s Second Trigger
        Valuation Percentage for such Eligible Collateral set forth in Paragraph
        13(b)(ii).

       

      “Next
        Payment”
        means,
        in respect of each Next Payment Date, the greater of (i) the amount of any
        payments due to be made by Party A under Section 2(a) on such Next Payment
        Date
        less any payments due to be made by Party B under Section 2(a) on such Next
        Payment Date (in each case, after giving effect to any applicable netting
        under
        Section 2(c)) and (ii) zero.

       

      
        
          
          

        

        
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      “Next
        Payment Date”
        means
        each date on which the next scheduled payment under any Transaction is due
        to be
        paid.

       

      “Pricing
        Sources”
        means
        the sources of financial information commonly known as Bloomberg, Bridge
        Information Services, Data Resources Inc., Interactive Data Services,
        International Securities Market Association, Merrill Lynch Securities Pricing
        Service, Muller Data Corporation, Reuters, Wood Gundy, Trepp Pricing, JJ
        Kenny,
        S&P and Telerate.

       

      “Remaining
        Weighted Average Maturity” means,
        with respect to a Transaction, the expected weighted average maturity for
        such
        Transaction as determined by the Valuation Agent.

      

      “S&P
        Approved Ratings Downgrade Event”
        means
        that no Relevant Entity has credit ratings at least equal to the S&P
        Approved Ratings Threshold.

       

      “S&P
        Credit Support Amount”
        means,
        for any Valuation Date, the excess, if any, of

       

      
        	 	
                (I)

              	
                (A)
                  

              	
                for
                  any Valuation Date on which (i) an S&P Required Ratings Downgrade
                  Event, has occurred and been continuing for at least 30 days, or
                  (ii) a
                  S&P Required Ratings Downgrade Event has occurred and is continuing,
                  an amount equal to the sum of (1) 100.0% of the Secured Party’s Exposure
                  for such Valuation Date and (2) the sum, for each Transaction to
                  which
                  this Annex relates, of the product of (i) the Volatility Buffer
                  for such
                  Transaction, (ii) the Scale Factor, if any, for such Transaction,
                  or, if
                  no Scale Factor is applicable for such Transaction, one, and (iii)
                  the
                  Notional Amount of such Transaction for the Calculation Period
                  of such
                  Transaction (each as defined in the related Confirmation) which
                  includes
                  such Valuation Date, or 

              

      

       

      
        	 	
                (B)

              	
                for
                  any other Valuation Date, zero,
                  over

              

      

       

      
        	
              	(II)	
                the
                  Threshold for Party A for such Valuation
                  Date.

              

      

       

      “S&P
        Required Ratings Downgrade Event”
        means
        that on any date, no Relevant Entity has credit ratings at least equal to
        the
        S&P Required Ratings Threshold.

       

      “S&P
        Value”
        means,
        on any date and with respect to any Eligible Collateral other than Cash,
        the
        product of (A) the bid price obtained by the Valuation Agent for such Eligible
        Collateral and (B) the S&P Valuation Percentage for such Eligible Collateral
        set forth in paragraph 13(b)(ii).

       

      “Transaction
        Exposure”
        means,
        for any Transaction, Exposure determined as if such Transaction were the
        only
        Transaction between the Secured Party and the Pledgor.

       

      “Transaction-Specific
        Hedge” means
        any
        Transaction that is (i) an interest rate swap in respect of which (x) the
        notional amount of the interest rate swap is “balance guaranteed” or (y) the
        notional amount of the interest rate swap for any Calculation Period (as
        defined
        in the related Confirmation) otherwise is not a specific dollar amount that
        is
        fixed at the inception of the Transaction, (ii) an interest rate cap, (iii)
        an
        interest rate floor or (iv) an interest rate swaption.

       

      “Valuation
        Percentage”
        shall
        mean, for purposes of determining the S&P Value, Moody’s First Trigger
        Value, or Moody’s Second Trigger Value with respect to any Eligible Collateral
        or Posted Collateral, the applicable S&P Valuation Percentage, Moody’s First
        Trigger Valuation Percentage, or Moody’s Second Trigger Valuation Percentage for
        such Eligible Collateral or Posted Collateral, respectively, in each case
        as set
        forth in Paragraph 13(b)(ii).

       

      
        
          
          

        

        
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      “Value”
        shall
        mean, in respect of any date, the related S&P Value, the related Moody’s
        First Trigger Value, and the related Moody’s Second Trigger Value.

       

      “Volatility
        Buffer”
        means,
        for any Transaction, the related percentage set forth in the following table.
        

       

      
        	
                The
                  higher of the S&P credit rating of (i) Party A and (ii) the Credit
                  Support Provider of Party A, if applicable

              	
                Remaining
                  Weighted Average Maturity of such Transaction 

                up
                  to 3 years

              	
                Remaining
                  Weighted Average Maturity of such Transaction

                up
                  to 5 years

              	
                Remaining
                  Weighted Average Maturity of such Transaction

                up
                  to 10 years

              	
                Remaining
                  Weighted Average Maturity of such Transaction

                up
                  to 30 years

              
	
                “A-2”
                  or higher 

              	
                2.75%

              	
                3.25%

              	
                4.00%

              	
                4.75%

              
	
                “A-3”

              	
                3.25%

              	
                4.00%

              	
                5.00%

              	
                6.25%

              
	
                “BB+”
                  or
                  lower

              	
                3.50%

              	
                4.50%

              	
                6.75%

              	
                7.50%

              

      

      

       

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        of this page intentionally left blank]

       

      
        
          
          

        

        
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      Table
        1

       

      Moody’s
        First Trigger Factor

       

      
        	
                Remaining

                Weighted
                  Average Life 

                of
                  Hedge in Years

              	
                Weekly

                Collateral

                Posting

              
	
                1
                  or less

              	
                0.25%

              
	
                More
                  than 1 but not more than 2

              	
                0.50%

              
	
                More
                  than 2 but not more than 3

              	
                0.70%

              
	
                More
                  than 3 but not more than 4

              	
                1.00%

              
	
                More
                  than 4 but not more than 5

              	
                1.20%

              
	
                More
                  than 5 but not more than 6

              	
                1.40%

              
	
                More
                  than 6 but not more than 7

              	
                1.60%

              
	
                More
                  than 7 but not more than 8

              	
                1.80%

              
	
                More
                  than 8 but not more than 9

              	
                2.00%

              
	
                More
                  than 9 but not more than 10

              	
                2.20%

              
	
                More
                  than 10 but not more than 11

              	
                2.30%

              
	
                More
                  than 11 but not more than 12

              	
                2.50%

              
	
                More
                  than 12 but not more than 13

              	
                2.70%

              
	
                More
                  than 13 but not more than 14

              	
                2.80%

              
	
                More
                  than 14 but not more than 15

              	
                3.00%

              
	
                More
                  than 15 but not more than 16

              	
                3.20%

              
	
                More
                  than 16 but not more than 17

              	
                3.30%

              
	
                More
                  than 17 but not more than 18

              	
                3.50%

              
	
                More
                  than 18 but not more than 19

              	
                3.60%

              
	
                More
                  than 19 but not more than 20

              	
                3.70%

              
	
                More
                  than 20 but not more than 21

              	
                3.90%

              
	
                More
                  than 21 but not more than 22

              	
                4.00%

              
	
                More
                  than 22 but not more than 23

              	
                4.00%

              
	
                More
                  than 23 but not more than 24

              	
                4.00%

              
	
                More
                  than 24 but not more than 25

              	
                4.00%

              
	
                More
                  than 25 but not more than 26

              	
                4.00%

              
	
                More
                  than 26 but not more than 27

              	
                4.00%

              
	
                More
                  than 27 but not more than 28

              	
                4.00%

              
	
                More
                  than 28 but not more than 29

              	
                4.00%

              
	
                More
                  than 29

              	
                4.00%

              

      

       

      
        
          
          

        

        
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      Table
        2

       

      Moody’s
        Second Trigger Factor for Interest Rate Swaps with Fixed Notional
        Amounts

       

      
        	
                Remaining

                Weighted
                  Average Life 

                of
                  Hedge in Years

              	
                Weekly

                Collateral
                  

                Posting

              
	
                1
                  or less

              	
                0.60%

              
	
                More
                  than 1 but not more than 2

              	
                1.20%

              
	
                More
                  than 2 but not more than 3

              	
                1.70%

              
	
                More
                  than 3 but not more than 4

              	
                2.30%

              
	
                More
                  than 4 but not more than 5

              	
                2.80%

              
	
                More
                  than 5 but not more than 6

              	
                3.30%

              
	
                More
                  than 6 but not more than 7

              	
                3.80%

              
	
                More
                  than 7 but not more than 8

              	
                4.30%

              
	
                More
                  than 8 but not more than 9

              	
                4.80%

              
	
                More
                  than 9 but not more than 10

              	
                5.30%

              
	
                More
                  than 10 but not more than 11

              	
                5.60%

              
	
                More
                  than 11 but not more than 12

              	
                6.00%

              
	
                More
                  than 12 but not more than 13

              	
                6.40%

              
	
                More
                  than 13 but not more than 14

              	
                6.80%

              
	
                More
                  than 14 but not more than 15

              	
                7.20%

              
	
                More
                  than 15 but not more than 16

              	
                7.60%

              
	
                More
                  than 16 but not more than 17

              	
                7.90%

              
	
                More
                  than 17 but not more than 18

              	
                8.30%

              
	
                More
                  than 18 but not more than 19

              	
                8.60%

              
	
                More
                  than 19 but not more than 20

              	
                9.00%

              
	
                More
                  than 20 but not more than 21

              	
                9.00%

              
	
                More
                  than 21 but not more than 22

              	
                9.00%

              
	
                More
                  than 22 but not more than 23

              	
                9.00%

              
	
                More
                  than 23 but not more than 24

              	
                9.00%

              
	
                More
                  than 24 but not more than 25

              	
                9.00%

              
	
                More
                  than 25 but not more than 26

              	
                9.00%

              
	
                More
                  than 26 but not more than 27

              	
                9.00%

              
	
                More
                  than 27 but not more than 28

              	
                9.00%

              
	
                More
                  than 28 but not more than 29

              	
                9.00%

              
	
                More
                  than 29

              	
                9.00%

              

      

       

      
        
          
          

        

        
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      Table
        3

       

      Moody’s
        Second Trigger Factor for Transaction-Specific Hedges

       

      
        	
                Remaining

                Weighted
                  Average Life 

                of
                  Hedge in Years

              	
                Weekly

                Collateral

                Posting

              
	
                1
                  or less

              	
                0.75%

              
	
                More
                  than 1 but not more than 2

              	
                1.50%

              
	
                More
                  than 2 but not more than 3

              	
                2.20%

              
	
                More
                  than 3 but not more than 4

              	
                2.90%

              
	
                More
                  than 4 but not more than 5

              	
                3.60%

              
	
                More
                  than 5 but not more than 6

              	
                4.20%

              
	
                More
                  than 6 but not more than 7

              	
                4.80%

              
	
                More
                  than 7 but not more than 8

              	
                5.40%

              
	
                More
                  than 8 but not more than 9

              	
                6.00%

              
	
                More
                  than 9 but not more than 10

              	
                6.60%

              
	
                More
                  than 10 but not more than 11

              	
                7.00%

              
	
                More
                  than 11 but not more than 12

              	
                7.50%

              
	
                More
                  than 12 but not more than 13

              	
                8.00%

              
	
                More
                  than 13 but not more than 14

              	
                8.50%

              
	
                More
                  than 14 but not more than 15

              	
                9.00%

              
	
                More
                  than 15 but not more than 16

              	
                9.50%

              
	
                More
                  than 16 but not more than 17

              	
                9.90%

              
	
                More
                  than 17 but not more than 18

              	
                10.40%

              
	
                More
                  than 18 but not more than 19

              	
                10.80%

              
	
                More
                  than 19 but not more than 20

              	
                11.00%

              
	
                More
                  than 20 but not more than 21

              	
                11.00%

              
	
                More
                  than 21 but not more than 22

              	
                11.00%

              
	
                More
                  than 22 but not more than 23

              	
                11.00%

              
	
                More
                  than 23 but not more than 24

              	
                11.00%

              
	
                More
                  than 24 but not more than 25

              	
                11.00%

              
	
                More
                  than 25 but not more than 26

              	
                11.00%

              
	
                More
                  than 26 but not more than 27

              	
                11.00%

              
	
                More
                  than 27 but not more than 28

              	
                11.00%

              
	
                More
                  than 28 but not more than 29

              	
                11.00%

              
	
                More
                  than 29

              	
                11.00%

              

      

      

      
        
          
          

        

        
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      IN
        WITNESS WHEREOF, the parties have executed this Annex by their duly authorized
        representatives as of the date of the Agreement.

       

      
        	
                Deutsche
                  Bank AG

                 

              	
                HSBC
                  Bank USA, National Association, not in its individual capacity,
                  but solely
                  as Trustee for the ACE Securities Corp. Home Equity Loan Trust,
                  Series
                  2007-HE4 Asset Backed Pass-Through Certificates

                 

              
	
                By: /s/
                  Chris Flanagan

                Chris
                  Flanagan

                Authorized
                  Representative

              	
                By: /s/
                  Fernando Acebedo

                Fernando
                  Acebedo

                Vice
                  President

              

      

      

       

      
        
          
          

        

        
          15

          
            

          

        

        
          
          

        

      

       

    

    EXHIBIT
      K

     

    FORM
      OF
      SUBSEQUENT TRANSFER FOR INSTRUMENT

     

    Pursuant
      to this Subsequent Transfer Instrument, dated ________, 2007 (the “Instrument”),
      between ACE Securities Corp. as seller (the “Depositor”), and HSBC Bank USA,
      National Association as trustee of the ACE Securities Corp. Home Equity Loan
      Trust, Series 2007-HE4, Asset Backed Pass-Through Certificates, as purchaser
      (the “Trustee”), and pursuant to the Pooling and Servicing Agreement, dated as
      of April 1, 2007 (the “Pooling and Servicing Agreement”), among the Depositor,
      Ocwen Loan Servicing, LLC as a servicer, GMAC Mortgage, LLC as a servicer,
      Wells
      Fargo Bank, N.A. as Master Servicer and Securities Administrator and the
      Trustee, the Depositor and the Trustee agree to the sale by the Depositor and
      the purchase by the Trustee in trust, on behalf of the Trust, of the Mortgage
      Loans listed on the attached Schedule of Mortgage Loans (the “Subsequent
      Mortgage Loans”).

     

    Capitalized
      terms used but not otherwise defined herein shall have the meanings set forth
      in
      the Pooling and Servicing Agreement.

     

    Section
      1. Conveyance
      of Subsequent Mortgage Loans.

     

    (a) The
      Depositor does hereby sell, transfer, assign, set over and convey to the Trustee
      in trust, on behalf of the Trust, without recourse, all of its right, title
      and
      interest in and to the Subsequent Mortgage Loans, and including all amounts
      due
      on the Subsequent Mortgage Loans after the related Subsequent Cut-off Date,
      and
      all items with respect to the Subsequent Mortgage Loans to be delivered pursuant
      to Section 2.01 of the Pooling and Servicing Agreement; provided, however that
      the Depositor reserves and retains all right, title and interest in and to
      amounts due on the Subsequent Mortgage Loans on or prior to the related
      Subsequent Cut-off Date. The Depositor, contemporaneously with the delivery
      of
      this Agreement, has delivered or caused to be delivered to the Trustee each
      item
      set forth in Section 2.01 of the Pooling and Servicing Agreement. The transfer
      to the Trustee by the Depositor of the Subsequent Mortgage Loans identified
      on
      the Mortgage Loan Schedule shall be absolute and is intended by the Depositor,
      the Trustee and the Certificateholders to constitute and to be treated as a
      sale
      by the Depositor to the Trust Fund.

     

    (b) The
      Depositor, concurrently with the execution and delivery hereof, does hereby
      transfer, assign, set over and otherwise convey to the Trustee without recourse
      for the benefit of the Certificateholders all the right, title and interest
      of
      the Depositor, in, to and under the Subsequent Mortgage Loan Purchase Agreement,
      dated the date hereof, between the Depositor as purchaser and DB Structured
      Products, Inc. as seller, to the extent of the Subsequent Mortgage
      Loans.

     

    (c) Additional
      terms of the sale are set forth on Attachment A hereto.

     

    Section
      2. Representations
      and Warranties; Conditions Precedent.

     

    (a) The
      Depositor hereby confirms that each of the conditions and the representations
      and warranties set forth in Section 2.09 of the Pooling and Servicing Agreement
      are satisfied as of the date hereof.

     

    
      
        
        

      

      
        K-1

        
          

        

      

      
        
        

      

    

     

    (b) All
      terms
      and conditions of the Pooling and Servicing Agreement 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 Pooling
      and Servicing Agreement.

     

    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 Depositor at the
      Certificateholders’ expense on direction of the related Certificateholders, but
      only when accompanied by an Opinion of Counsel to the effect that such
      recordation materially and beneficially affects the interests of the
      Certificateholders or is necessary for the administration or servicing of the
      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. The parties hereto intend that the provisions of Section
      5-1401 of the New York General Obligations Law shall apply to this
      Instrument.

     

    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 Depositor
      and
      the Trustee and their respective successors and assigns.

     

    
      
        
        

      

      
        K-2

        
          

        

      

      
        
        

      

    

     

    
      	 	 	 	
              ACE
                SECURITIES CORP.

            
	 	 	 	 
	 	 	 	 
	
            	 	 	
              By:

            
	
            	 	 	
              
                

              

              Name:

            
	
            	 	 	
              Title:

            
	 	 	 	 
	 	 	 	 
	 	 	 	
              By: 

            
	 	 	 	
              
                

              

              Name:

            
	 	 	 	
              Title:

            
	 	 	 	 
	 	 	 	 
	 	 	 	
              HSBC
                BANK USA, NATIONAL ASSOCIATION, as Trustee for ACE Securities Corp.
                Home
                Equity Loan Trust, Series 2007-HE4, Asset Backed Pass-Through
                Certificates

            
	 	 	 	 
	 	 	 	 
	 	 	 	
              By:

            
	 	 	 	
              
                

              

              Name:

            
	 	 	 	
              Title:

            

    

     

    Attachments

     

    
      	A.	
              Additional
                terms of sale.

            

    

     

    
      
        
          	B.	
                  Schedule
                    of Subsequent Mortgage
                    Loans.

                

        

      

    

     

    
      
        
        

      

      
        K-3

        
          

        

      

      
        
        

      

       

    

    EXHIBIT
      L

     

    FORM
      OF
      ADDITION NOTICE

     

    [Date]

     

    
      	
              HSBC
                Bank USA, National Association 

              452
                Fifth Avenue

              New
                York, New York 10018

              Attention:
                ACE Securities Corp., 2007-HE4

            	 

    

     

    
      	 	
              Re:
                

            	
              Pooling
                and Servicing Agreement dated as of April 1, 2007 among ACE Securities
                Corp. as depositor, Ocwen Loan Servicing LLC as a servicer, GMAC
                Mortgage,
                LLC as a servicer, Wells Fargo Bank, N.A. as Master Servicer and
                Securities Administrator and HSBC Bank USA, National Association
                as
                trustee

            

    

     

    Ladies
      and Gentlemen:

     

    Pursuant
      to Section 2.09 of the referenced Pooling and Servicing Agreement, Ace
      Securities Corp. has designated Subsequent Mortgage Loans to be sold to the
      Trust on __________, 2007, with an aggregate principal balance of $                        
      .
      Capitalized terms not otherwise defined herein have the meaning set forth in
      the
      Pooling and Servicing Agreement.

    

    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.

     

    
      	 	 	 	
              Very
                truly yours,

            
	 	 	 	 
	
            	 	 	
              ACE
                SECURITIES CORP.

            
	 	 	 	 
	 	 	 	
              By:

            
	
            	 	 	
              
                

              

              Name:

            
	
            	 	 	
              Title:

            
	 	 	 	 
	 	 	 	
              By:

            
	 	 	 	
              
                

              

              Name:

            
	 	 	 	
              Title:

            

    

     

     

    
      	
              Acknowledged
                and Agreed:

            	 	 	 
	 	 	 	 
	
              HSBC
                BANK USA, NATIONAL ASSOCIATION, as trustee

            	 	 	
            
	 	 	 	 
	 	 	 	 
	
              By:

            	 	 	 
	
              
                

              

              Name:

            	 	 	
            
	
              Title:

            	 	 	
            

    

     

    
      
        
        

      

      
        L-1

        
          

        

      

      
        
        

      

       

    

    EXHIBIT
      M

     

    IDENTIFIED
      SUBSEQUENT MORTGAGE LOANS

    

    [PROVIDED
      UPON REQUEST]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    EXHIBIT
      N

    

    ASSIGNMENT
      AGREEMENT AND SERVICING AGREEMENT

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ASSIGNMENT,
      ASSUMPTION AND RECOGNITION AGREEMENT

     

    THIS
      ASSIGNMENT, ASSUMPTION AND RECOGNITION AGREEMENT, dated April 30, 2007 (this
      “AAR
      Agreement”),
      among
      DB Structured Products, Inc. (“Assignor”),
      ACE
      Securities Corp. (“Assignee”)
      and
      Countrywide Home Loans Servicing LP (the “Servicer”),
      and
      acknowledged and agreed to by Wells Fargo Bank, N.A., as master servicer
      (“Master
      Servicer”).

     

    For
      and
      in consideration of the mutual promises contained herein and other good and
      valuable consideration, the receipt and sufficiency of which are hereby
      acknowledged, and of the mutual covenants herein contained, the parties hereto
      hereby agree as follows:

     

    1. Assignment,
      Assumption and Conveyance

     

    The
      Assignor hereby conveys, sells, grants, transfers and assigns to the Assignee
      all of the right, title and interest (other than those rights specifically
      retained by the Assignor pursuant to this AAR Agreement) of the Assignor, as
      purchaser, in, to and under (a) those certain Mortgage Loans listed on the
      schedule (the “Mortgage
      Loan Schedule”)
      attached hereto as Exhibit A (the “Mortgage
      Loans”),
      and
      (b) solely insofar as it relates to the Mortgage Loans, that certain Flow
      Servicing Agreement, dated as of June 30, 2006 (the “Flow
      Servicing Agreement”),
      by
      and between the Assignor (in such capacity, the “Owner”)
      and
      the Servicer attached hereto as Attachment 1, as modified by that certain
      Commitment Letter, dated April 30, 2007 (the “Commitment
      Letter”
and
      together with the Flow Servicing Agreement, the “Servicing
      Agreement”),
      between the Owner and the Servicer attached here to as Attachment
      2.

     

    The
      Assignor specifically reserves and does not assign to the Assignee hereunder
      (i) any and all right, title and interest in, to and under and any
      obligations of the Assignor with respect to any mortgage loans subject to the
      Servicing Agreement that are not the Mortgage Loans set forth on the Mortgage
      Loan Schedule and are not the subject of this AAR Agreement, (ii) any rights
      and
      obligations of the Assignor pursuant to the Servicing Agreement arising prior
      to
      the date hereof, (iii) the rights and obligations of the Owner under
      Section 6.01(c) (relating to the Owner’s right to terminate the Servicer),
      and Section 13.14 (relating to the Owner’s obligation to execute certain
      confidentiality agreements) or (iv) any rights of the Assignor under the
      Commitment Letter, which rights shall survive the execution and delivery of
      this
      AAR Agreement.

     

    The
      Assignee hereby assumes all of the Assignor’s obligations under the Mortgage
      Loans and the Servicing Agreement solely insofar as such obligations relate
      to
      the Mortgage Loans, other than the obligations set forth in clauses (ii) and
      (iii) of the preceding paragraph.

     

    The
      parties hereto agree that, notwithstanding anything to the contrary contained
      in
      the Commitment Letter, with respect to the Mortgage Loans being serviced under
      the Servicing Agreement: (a) the Servicing Fee Rate for the Mortgage Loans
      shall
      be the rate set forth in the Commitment Letter, (b) any Prepayment Penalties
      collected by the Servicer shall be remitted to the Trustee (hereinafter defined)
      and (c) Servicer shall be entitled to withdraw from the Custodial Account any
      amounts payable to Servicer in connection with the repurchase of any Mortgage
      Loan pursuant to the related Purchase Agreement.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    2. Recognition
      of the Servicer

     

    From
      and
      after the date hereof (the “Securitization
      Closing Date”),
      the
      Servicer shall and does hereby recognize that the Assignee will transfer the
      Mortgage Loans and assign its rights under the Servicing Agreement (solely
      to
      the extent set forth herein) and this AAR Agreement to HSBC Bank USA, National
      Association, as trustee (including its successors in interest and any successor
      trustees under the Pooling Agreement, the “Trustee”),
      of
      the ACE Securities Corp. Home Equity Loan Trust, Series 2007-HE4 Asset-Backed
      Certificates (the “Trust”)
      created pursuant to a Pooling and Servicing Agreement, dated as of April 1,
      2007
      (the “Pooling
      Agreement”),
      among
      the Assignee as depositor, Ocwen Loan Servicing, LLC as a servicer, GMAC
      Mortgage, LLC as a servicer, the Trustee and Wells Fargo Bank, N.A., as master
      servicer (including its successors in interest and any successor servicer under
      the Pooling Agreement, the “Master
      Servicer”)
      and as
      securities administrator.  

     

    The
      Servicer hereby acknowledges and agrees that from and after the date hereof
      (i) the Trust will be the owner of the Mortgage Loans pursuant to the terms
      set forth in the Pooling Agreement and the Servicer will be the servicer of
      the
      Mortgage Loans, (ii) the Servicer shall look solely to the Trust (including
      the Trustee and the Master Servicer acting on the Trust’s behalf) for
      performance of any obligations of the Assignor under the Mortgage Loans and
      the
      Servicing Agreement (solely insofar as it relates to the Mortgage Loans) (except
      for such obligations of the Assignor retained by the Assignor hereunder),
      (iii) the Trust (including the Trustee and the Master Servicer acting on
      the Trust’s behalf) shall have all the rights and remedies available to the
      Assignor, insofar as they relate to the Mortgage Loans under the Servicing
      Agreement, including, without limitation, the enforcement of the document
      delivery requirements set forth in Section 6.02 of the Servicing Agreement,
      and
      shall be entitled to enforce all of the obligations of the Servicer thereunder
      insofar as they relate to the Mortgage Loans, including without limitation,
      the
      remedies for breaches of representations and warranties set forth in
      Article 10 of the Servicing Agreement (except for the rights and remedies
      retained by the Assignor hereunder), (iv) all references to the Owner under
      the Servicing Agreement insofar as they relate to the Mortgage Loans shall
      be
      deemed to refer to the Trust (except to the extent of the rights and obligations
      retained by the Assignor hereunder) (including the Trustee and the Master
      Servicer acting on the Trust’s behalf) and (v) the Mortgage Loans will be
      part of a REMIC, and the Servicer shall service the Mortgage Loans and any
      real
      property acquired upon default thereof (including, without limitation, making
      or
      permitting any modification, waiver or amendment of any term of any Mortgage
      Loan) in accordance with the Servicing Agreement but in no event in a manner
      that would (A) cause the REMIC to fail to qualify as a REMIC or
      (B) result in the imposition of a tax upon the REMIC (including but not
      limited to the tax on prohibited transactions as defined in
      Section 860F(a)(2) of the Code, the tax on contributions to a REMIC set
      forth in Section 860G(d) of the Code, and the tax on “net income from
      foreclosure property” as set forth in Section 860G(c) of the Code).
 

     

    Neither
      the Servicer nor the Assignor shall amend or agree to amend, modify, waive,
      or
      otherwise alter any of the terms or provisions of the Servicing Agreement which
      amendment, modification, waiver or other alteration would in any way affect
      the
      Mortgage Loans or the Servicer’s performance under the Servicing Agreement with
      respect to the Mortgage Loans without the prior written consent of the Trustee
      and the Master Servicer.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    3. Representations
      and Warranties of the Servicer

     

    The
      Servicer warrants and represents to and covenants with, the Assignor, the
      Assignee and the Trust as of the date hereof that:

     

    (a) The
      Servicer is duly organized, validly existing and in good standing under the
      laws
      of the jurisdiction of its formation; 

     

    (b) The
      Servicer has full power and authority to execute, deliver and perform its
      obligations under this AAR Agreement and has full power and authority to perform
      its obligations under this AAR Agreement and the Servicing Agreement.  The
      execution by the Servicer of this AAR Agreement is in the ordinary course of
      the
      Servicer’s business and will not conflict with, or result in a breach of, any of
      the terms, conditions or provisions of the Servicer’s charter or bylaws or any
      legal restriction, or any material agreement or instrument to which the Servicer
      is now a party or by which it is bound, or result in the violation of any law,
      rule, regulation, order, judgment or decree to which the Servicer or its
      property is subject.  The execution, delivery and performance by the
      Servicer of this AAR Agreement have been duly authorized by all necessary
      corporate action on part of the Servicer.  This AAR Agreement has been duly
      executed and delivered by the Servicer, and, upon the due authorization,
      execution and delivery by the Assignor and the Assignee, will constitute the
      valid and legally binding obligation of the Servicer, enforceable against the
      Servicer in accordance with its terms except as enforceability may be limited
      by
      bankruptcy, reorganization, insolvency, moratorium or other similar laws now
      or
      hereafter in effect relating to creditors’ rights generally, and by general
      principles of equity regardless of whether enforceability is considered in
      a
      proceeding in equity or at law; 

     

    (c) No
      consent, approval, order or authorization of, or declaration, filing or
      registration with, any governmental entity is required to be obtained or made
      by
      the Servicer in connection with the execution, delivery or performance by the
      Servicer of this AAR Agreement or the consummation by it of the transaction
      contemplated hereby;

     

    (d) From
      and
      after the Securitization Closing Date, the Servicer shall service the Mortgage
      Loans in accordance with the terms and provisions of the Servicing Agreement
      and
      this AAR Agreement. The Servicer shall establish a Custodial Account and an
      Escrow Account under the Servicing Agreement in favor of the Trust entitled
      “Countrywide Home Loans Servicing LP, as Servicer in trust for ACE Securities
      Corp. Home Equity Loan Trust, Series 2007-HE4” with respect to the Mortgage
      Loans separate from the Custodial Account and Escrow Account previously
      established under the Servicing Agreement in favor of the Assignor;

     

    (e) There
      is
      no action, suit, proceeding or investigation pending or threatened against
      the
      Servicer, before any court, administrative agency or other tribunal, which
      would
      draw into question the validity of this AAR Agreement or the Servicing
      Agreement, or which, either in any one instance or in the aggregate, is likely
      to result in any material adverse change in the ability of the Servicer to
      perform its obligations under this AAR Agreement or the Servicing Agreement,
      and
      the Servicer is solvent; 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (f) The
      Servicer has serviced the Mortgage Loans in accordance with the Servicing
      Agreement and has provided accurate “paid through” data (assuming the
      correctness of all “paid through” data provided by the Assignor to the Servicer
      at the time the Servicer began servicing the Mortgage Loans) with respect to
      the
      Mortgage Loans to the Assignor; 

     

    (g) Except
      as
      reflected in the “paid through” data delivered to the Assignor (assuming the
      correctness of all “paid through” data provided by the Assignor to the Servicer
      at the time the Servicer began servicing the Mortgage Loans), there is no
      payment default existing under any Mortgage or any Mortgage Note as of the
      Securitization Closing Date; 

     

    (h) To
      the
      Servicer’s knowledge, there is no non-payment default existing under any
      Mortgage or Mortgage Note, or any event which, with the passage of time or
      with
      notice and the termination of any grace or cure period, would constitute a
      non-payment default, breach, violation or event which would permit acceleration
      as of the Securitization Closing Date; 

     

    (i) The
      Servicing Agreement is in full force and effect as of the date hereof and its
      provisions have not been waived, amended or modified in any respect except
      as
      contemplated under this AAR Agreement, nor has any notice of termination been
      given thereunder; and

     

    (j) Pursuant
      to Section 13.12 of the Servicing Agreement, the Servicer hereby represents
      and warrants, for the benefit of the Assignor, the Assignee and the Trust,
      that
      the representations and warranties set forth in Article X of the Servicing
      Agreement are true and correct as of the date hereof as if such representations
      and warranties were made on the date hereof.

     

    4. Modification
      of Servicing Agreement

     

    (a) Section
      1.01 of the Servicing Agreement is modified by deleting the definition of
“Business Day” in its entirety and replacing it with the following:

     

    Business
      Day:
      Any day
      other than (i) a Saturday or Sunday, or (ii) a day on which banking and savings
      and loan institutions in either the States of New York, California, Maryland,
      Minnesota, Texas or in the city in which the Corporate Trust Office of the
      Trustee is located, are authorized or obligated by law or executive order to
      be
      closed.

     

    (b) Section
      1.01 of the Servicing Agreement is modified by deleting the definition of
“Cut-off Date” in its entirety and replacing it with the following:

     

    Cut-off
      Date:
      April
      1, 2007.

     

    (c) Section
      1.01 of the Servicing Agreement is modified by deleting the definition of
“Determination Date” in its entirety and replacing it with the
      following:

     

    Determination
      Date:
      the
      18th
      day of
      the calendar month in which such Remittance Date occurs, or if such
      18th
      day is
      not a Business Day, the Business Day immediately preceding such 18th
      day.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (d) Section
      1.01 of the Servicing Agreement is modified by deleting the definition of “Due
      Period” in its entirety and replacing it with the following:

     

    Due
      Period:
      With
      respect to each Remittance Date, the period commencing on the second day of
      the
      month preceding the month of the Remittance Date and ending on the first day
      of
      the month of the Remittance Date.

     

    (e) Section
      1.01 of the Servicing Agreement is modified by deleting the definition of
“Master Servicer” in its entirety and replacing it with the
      following:

     

    Master
      Servicer:
      Wells
      Fargo Bank, National Association and thereafter, its respective successors
      in
      interest that meet the qualifications of the Pooling and Servicing Agreement.
      The Securities Administrator and the Master Servicer shall at all times be
      the
      same Person or Affiliates.

     

    (f) Section
      1.01 of the Servicing Agreement is modified by deleting the definition of
“Monthly Advances” in its entirety and replacing it with the
      following:

     

    Monthly
      Advance:
       The advances made or required to be made by the Servicer on any Remittance
      Date pursuant to Section 3.04.

     

    (g) Section
      1.01 of the Servicing Agreement is modified by deleting the definition of
“Nonrecoverable Advance” in its entirety and replacing it with the
      following:

     

    Nonrecoverable
      Advance:
      Any
      Servicing Advance or Monthly Advance previously made or proposed to be made
      in
      respect of a Mortgage Loan or REO Property which, in the good faith judgment
      of
      the Servicer, will not or, in the case of a proposed advance, would not, be
      ultimately recoverable from related Insurance Proceeds, Liquidation Proceeds
      or
      otherwise from such Mortgage Loan or REO Property. The determination by the
      Servicer that it has made a Nonrecoverable Advance or that any proposed
      Servicing Advance or Monthly Advance, if made, would constitute a Nonrecoverable
      Advance shall be evidenced by an Officer’s Certificate delivered to the Master
      Servicer, the Depositor and the Trustee.

     

    (h) Section
      1.01 of the Servicing Agreement is modified by deleting the definition of
“Principal Prepayment Period” in its entirety and replacing it with the
      following:

     

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

     

    (i) Section
      1.01 of the Servicing Agreement is modified by deleting the definition of
“Remittance Date” in its entirety and replacing it with the
      following:

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Remittance
      Date:
      The
      22nd
      day of
      any month; provided that if such 22nd
      day of a
      given month is not a Business Day, the Remittance Date for such month shall
      be
      the Business Day immediately preceding such 22nd
      day;
      provided further, that if the Remittance Date falls on a Friday, the Remittance
      Date shall be the Business Day immediately preceding such Friday.

     

    (j) Section
      1.01 of the Servicing Agreement is modified by adding (in alphabetical order)
      the following definitions:

     

    Depositor:
      ACE
      Securities Corp. 

     

    Prepayment
      Interest Excess:
      With
      respect to each Mortgage Loan that was the subject of a Principal Prepayment
      in
      full during the portion of the related Principal Prepayment Period occurring
      between the first day of the calendar month in which such Distribution Date
      occurs and the fifteenth (15th)
      day of
      the calendar month in which such Distribution Date occurs, an amount equal
      to
      interest (to the extent received) at the applicable Net Mortgage Rate on the
      amount of such Principal Prepayment for the number of days commencing on the
      first day of the calendar month in which such Remittance Date occurs and ending
      on the last date through which interest is collected from the related Mortgagor.
      The Servicer may withdraw such Prepayment Interest Excess from the Custodial
      Account in accordance with Section 2.05(ii) of this Agreement.

     

    Prepayment
      Interest Shortfall Amount:
       With respect to any Remittance Date and Mortgage Loan that was subject to
      a Principal Prepayment in full or in part during the related Principal
      Prepayment Period, which Principal Prepayment was applied to such Mortgage
      Loan
      prior to such Mortgage Loan's Due Date in such calendar month, the amount of
      interest (at the Mortgage Loan Remittance Rate) that would have accrued on
      the
      amount of such Principal Prepayment during the period commencing on the date
      as
      of which such Principal Prepayment was applied to such Mortgage Loan and ending
      on the day immediately preceding such Due Date, inclusive.

     

    Securities
      Administrator:
      Wells
      Fargo Bank, National Association and thereafter, its respective successors
      in
      interest that meet the qualifications of the Pooling and Servicing Agreement.
      The Securities Administrator and the Master Servicer shall at all times be
      the
      same Person or Affiliates.

     

    Trustee:
      HSBC
      Bank USA, National Association, its successors and assigns.

     

    (k) Section
      2.01 of the Agreement is modified by adding the following to the end of the
      third paragraph of such Section:

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    or
      (iii)
      make or permit any modification, waiver or amendment of any term of any Mortgage
      Loan that would both (i) effect an exchange or reissuance of such Mortgage
      Loan
      under Section 1001 of the Code (or Treasury regulations promulgated thereunder)
      or (ii) cause the related trust fund to fail to qualify as a REMIC under the
      Code or the imposition of any tax on “prohibited transactions” or
“contributions” after the startup date under the REMIC Provisions.

     

    (l) Section
      2.04(ii) of the Servicing Agreement is modified by adding the following to
      the
      end of such provision: “and net of any Prepayment Interest Excess;”

     

    (m) Section
      2.04(vii) of the Servicing Agreement is modified by deleting “[Reserved]” and
      adding, “the Prepayment Interest Shortfall Amount, if any, for the month of
      distribution (such deposit shall be made by the Servicer from its own funds,
      without reimbursement therefor up to a maximum amount per month equal to the
      Servicer’s Servicing Fee);”.

     

    (n) Section
      2.04(viii) of the Servicing Agreement is modified by deleting “[Reserved]” and
      adding, “all Monthly Advances;”.

     

    (o) Section
      2.05(ii) of the Servicing Agreement is modified by deleting “[Reserved]” and
      adding, “to pay to itself any Prepayment Interest Excess on the related Mortgage
      Loans to the extent not retained pursuant to Section 2.04(ii)) of this
      Agreement;”

     

    (p) Article
      II of the Servicing Agreement is modified by adding the following Section 2.28
      to the end of such Article:

     

    Section
      2.28 Compliance
      with REMIC Provisions.

     

    If
      a
      REMIC election has been made with respect to the arrangement under which the
      Mortgage Loans and REO Property are held, the Servicer shall not take any
      action, cause the REMIC to take any action or fail to take (or fail to cause
      to
      be taken) any action that, under the REMIC Provisions, if taken or not taken,
      as
      the case may be, could (i) endanger the status of the REMIC as a REMIC or (ii)
      result in the imposition of a tax upon the REMIC (including but not limited
      to
      the tax on “prohibited transactions” as defined in Section 860F(a)(2) of
      the Code and the tax on “contributions” to a REMIC set forth in
      Section 860G(d) of the Code) unless the Servicer has received an Opinion of
      Counsel (at the expense of the party seeking to take such action) to the effect
      that the contemplated action will not endanger such REMIC status or result
      in
      the imposition of any such tax.

     

    Prior
      to
      taking any action with respect to the Mortgage Loans which is not contemplated
      under the terms of this Agreement, the Servicer will obtain an Opinion of
      Counsel acceptable to the Trustee with respect to whether such action could
      result in the imposition of a tax upon the REMIC (including but not limited
      to
      the tax on prohibited transactions as defined in Section 860F(a)(2) of the
      Code
      and the tax on contributions to a REMIC set forth in Section 860G(d) of the
      Code) (either such event, an “Adverse REMIC Event”), and the Servicer shall not
      take any such action or cause the related trust fund to take any such action
      as
      to which it has been advised that an Adverse REMIC Event could
      occur.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    The
      Servicer
      shall
      not
      permit the creation of any “interests” (within the meaning of Section 860G of
      the Code) in the REMIC. The Servicer shall not enter into any arrangement by
      which the REMIC will receive a fee or other compensation for services nor permit
      the REMIC to receive any income from assets other than “qualified mortgages” as
      defined in Section 860G(a)(3) of the Code or “permitted investments” as defined
      in Section 860G(a)(5) of the Code.

     

    (q) Section
      3.02 of the Servicing Agreement is modified by changing all references to
“Owner” to “Master Servicer and Securities Administrator”. 

     

    (r) Section
      3.02 of the Servicing Agreement is modified by deleting the first paragraph
      in
      its entirety and replacing it with the following:

     

    On
      the
      5th Business Day of each month, the Servicer shall, deliver to the Master
      Servicer and the Securities Administrator by telecopy or electronic mail (or
      by
      such other means as the Servicer, the Master Servicer and the Securities
      Administrator may agree from time to time) a remittance report containing
      information specified in Exhibit 16 (or otherwise in form and substance
      acceptable to the Master Servicer, Securities Administrator and the Servicer)
      with respect to the Mortgage Loans and the related Remittance Date as is
      reasonably available to the Servicer as the Master Servicer or the Securities
      Administrator may reasonably require so as to enable the Master Servicer to
      master service the related Mortgage Loans and oversee the servicing by the
      Servicer and the Securities Administrator to fulfill its obligations hereunder
      with respect to securities and tax reporting.

     

    (s) Section
      3.04 of the Servicing Agreement is modified by deleting the section in its
      entirety and replacing it with the following:

     

    Section
      3.04.   Monthly
      Advances.

     

    Not
      later
      than the close of business on the Determination Date preceding each Remittance
      Date, the Servicer shall deposit in the Custodial Account an amount equal to
      all
      payments not previously advanced by the Servicer, whether or not deferred
      pursuant to Section 3.01, of principal (due after the Cut-off Date) and interest
      not allocable to the period prior to the Cut-off Date, adjusted to the Mortgage
      Loan Remittance Rate, which were due on a Mortgage Loan and delinquent as of
      the
      close of business on the Business Day prior to the related Determination Date.
       Notwithstanding anything to the contrary herein, the Servicer may use
      amounts on deposit in the Custodial Account for future distribution to the
      Owner
      to satisfy its obligation, if any, to deposit delinquent amounts pursuant to
      the
      preceding sentence.  To the extent the Servicer uses any funds being held
      for future distribution to the Owner to satisfy its obligations under this
      Section 3.04, the Servicer shall deposit in the Custodial Account an amount
      equal to such used funds no later than the Determination Date prior to the
      following Remittance Date to the extent that funds in the Custodial Account
      on
      such Remittance Date are less than the amounts to be remitted to the Owner
      pursuant to Section 3.01.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    The
      Servicer’s obligation to make such advances as to any Mortgage Loan will
      continue through the earliest of:  (a) the last Monthly Payment due prior
      to the payment in full of the Mortgage Loan; or (b) the Remittance Date prior
      to
      the Remittance Date for the distribution of any Liquidation Proceeds, Insurance
      Proceeds or Condemnation Proceeds which, in the case of Insurance Proceeds
      and
      Condemnation Proceeds, satisfy in full the indebtedness of such Mortgage Loan.
       In no event shall the Servicer be obligated to make an advance under this
      Section 3.04 if at the time of such advance it reasonably determines that such
      advance will be unrecoverable.   The determination by the Servicer that it
      has made an unrecoverable Monthly Advance or that any proposed Monthly Advance,
      if made, would constitute an unrecoverable Monthly Advance, shall be evidenced
      by an Officers’ Certificate delivered to the Owner.

     

    (t) Section
      4.04 of the Servicing Agreement is modified by deleting the first reference
      therein to the words “the Servicer shall deliver to the Owner”.

     

    (u) Section
      4.05 of the Servicing Agreement is modified by adding the words “, any Master
      Servicer” following the words “shall deliver to the Owner”.

     

    (v) Section
      4.05 of the Servicing Agreement is further modified by adding the words, “and
      Item 1122 of Regulation AB” following the first reference therein to “Securities
      Exchange Act,”.

     

    (w) The
      last
      paragraph of Section 4.10 of the Servicing Agreement is modified by adding
      the
      words “or any Master Servicer” after the words “If reasonably requested by the
      Owner”.

     

    (x) Sections
      4.11(a) and 4.11(b) of the Servicing Agreement are modified by deleting the
      words “after reasonable notice from the Owner or the parties involved in the
      Owner’s Securitization Transaction” following the words “If required by
      Regulation AB”.

     

    (y) Section
      5.02(a) of the Servicing Agreement is modified by adding the words “such
      Servicer and” after the words “the Servicer shall provide such information
      regarding”.

     

    (z) Section
      5.02(f) of
      the
      Servicing Agreement is modified by adding the parenthetical “(as specified in
      the provisions of Regulation AB referenced below)” to the end of the
      paragraph.

     

    (aa) Section
      5.02(f)(i) of the Servicing Agreement is modified by adding the words “or that
      have cumulatively become material over time (Item 1121(a)(11) of Regulation
      AB)”
after the words “distribution period”.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (bb) Section
      5.02(f)(ii) of the Servicing Agreement is modified by adding the parenthetical
      “(Item 1121(a)(12) of Regulation AB)” after the words “under this AAR
      Agreement”.

     

    (cc) Section
      5.02(f)(iii) of the Servicing Agreement is modified by adding the parenthetical
      “(Item 1121(a)(14) of Regulation AB)”.

     

    (dd) Paragraph
      (i) of Section 8.01(c) of the Servicing Agreement is modified by deleting all
      instances of the clause “this Article VIII” and replacing them with the clause
“Sections 4.04, 4.05, 4.06, 4.10, 4.11 and 5.02”.

     

    (ee) Section
      8.01 of the Servicing Agreement is modified by deleting all references therein,
      except for the reference in Section 8.01(d)(i), to “Article XIV” and replacing
      them with the clause “Sections 4.04, 4.05, 4.06, 4.10, 4.11 and
      5.02.”

     

    (ff) Section
      8.01(d)(i) of the Servicing Agreement is hereby modified by deleting the
      reference to “Article XIV” therein and replacing it with “Sections 4.11 and
      5.02”.

     

    (gg) Paragraph
      (ii)(A) of Section 8.01(d) of the Servicing Agreement is modified by adding
      the
      phrase “any Master Servicer” after the words “shall entitle the
      Owner”.

     

    (hh) Paragraph
      (ii)(B) of Section 8.01(d) of the Servicing Agreement is modified by adding
      the
      phrase “any Master Servicer” after the words “shall entitle the
      Owner”.

     

    (ii) Paragraph
      (ii)B of Section 8.01(d) of the Servicing Agreement is further modified by
      adding “4.05” after the reference to “4.04” therein.

     

    (jj) Paragraph
      (ii)(B) of Section 8.01(d) of the Servicing Agreement is further modified by
      deleting the words “nine calendar days after receipt by the Servicer of written
      notice of such failure from the Owner or Depositor” and replacing them with the
      words “ten calendar days after the date on which such information, report
      certification or accountant’s letter is required to be delivered”.

     

    (kk) The
      last
      paragraph of Section 8.01 of the Servicing Agreement is modified by deleting
      the
      words “this Section” and replacing them with the words “this Article
      VIII”.

     

    (ll) The
      Servicing Agreement is modified by inserting Attachment
      4
      hereto
      as Exhibit
      16.
      

     

    5. Prepayment
      Penalty Verification

     

    On
      or
      prior to each Servicer Remittance Date, the Servicer shall provide in an
      electronic format acceptable to the Master Servicer the data necessary for
      the
      Master Servicer to perform its verification duties agreed to by the Master
      Servicer and the Assignee. The Master Servicer or a third party reasonably
      acceptable to the Master Servicer and the Depositor (the “Verification Agent”)
      will perform such verification duties and will use its best efforts to issue
      its
      findings in a report (the “Verification Report”) delivered to the Master
      Servicer and the Depositor within ten (10) Business Days following the related
      Distribution Date; provided, however, that if the Verification Agent is unable
      to issue the Verification Report within ten (10) Business Days following the
      Distribution Date, the Verification Agent may issue and deliver to the Master
      Servicer and the Depositor the Verification Report upon the completion of its
      verification duties. The Master Servicer shall forward the Verification Report
      to the Servicer and shall notify the Servicer if the Master Servicer has
      determined that the Servicer did not deliver the appropriate Prepayment Penalty
      to the Securities Administrator in accordance with this Agreement. Such written
      notification from the Master Servicer shall include the loan number, prepayment
      penalty code and prepayment penalty amount as calculated by the Master Servicer
      or the Verification Agent, as applicable, of each Mortgage Loan for which there
      is a discrepancy. If the Servicer agrees with the verified amounts, the Servicer
      shall adjust the immediately succeeding Servicer Report and the amount remitted
      to the Securities Administrator with respect to prepayments accordingly. If
      the
      Servicer disagrees with the determination of the Master Servicer, the Servicer
      shall, within five (5) Business Days of its receipt of the Verification Report,
      notify the Master Servicer of such disagreement and provide the Master Servicer
      with detailed information to support its position. The Servicer and the Master
      Servicer shall cooperate to resolve any discrepancy on or prior to the
      immediately succeeding Servicer Remittance Date, and the Servicer will indicate
      the effect of such resolution on the Servicer Report and shall adjust the amount
      remitted with respect to prepayments on such Servicer Remittance Date
      accordingly.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    During
      such time as the Servicer and the Master Servicer are resolving discrepancies
      with respect to the Prepayment Penalties, no payments in respect of any disputed
      Prepayment Penalties will be remitted to the Securities Administrator for
      deposit in the distribution account and the Master Servicer shall not be
      obligated to deposit such payments, unless otherwise required pursuant to the
      Pooling and Servicing Agreement. In connection with such duties, the Master
      Servicer shall be able to rely solely on the information provided to it by
      the
      Servicer in accordance with this Section. The Master Servicer shall not be
      responsible for verifying the accuracy of any of the information provided to
      it
      by the Servicer.

     

    6. Miscellaneous

     

    (a) All
      demands, notices and communications related to the Mortgage Loans, the Servicing
      Agreement and this AAR Agreement shall be in writing and shall be deemed to
      have
      been duly given if personally delivered at or mailed by registered mail, postage
      prepaid, as follows:

     

    In
      the case of Servicer,

    

    Countrywide
      Home Loans Servicing LP

    400
      Countrywide Way

    Simi
      Valley, California 93065

    Attention:
       Gabe Barroso, SVP Investor Accounting

     

    In
      the case of Assignor,

    DB
      Structured Products, Inc.

    60
      Wall Street

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    New
      York, New York 10005

    Attention:
      Susan Valenti

     

    In
      the case of Assignee,

    

    Deutsche
      Alt-A Securities, Inc. 

    c/o
      Deutsche Bank Securities, Inc.

    60
      Wall Street

    New
      York, New York 10005

    Attention:
      Susan Valenti

    

    In
      the case of the Master Servicer,

    

    Wells
      Fargo Bank, N.A.

    9062
      Old Annapolis Road

    Columbia,
      Maryland  21045

    Attention:
      Client Manager - ACE 2007-HE4

    Telecopier:
      (410) 715-2380

    

    (b) Each
      party will pay any commissions it has incurred and the Assignor shall pay the
      fees of its attorneys and the reasonable fees of the attorneys of the Assignee
      and the Servicer in connection with the negotiations for, documenting of and
      closing of the transactions contemplated by this AAR Agreement.

     

    (c) The
      Servicer hereby acknowledges that, Wells Fargo Bank, N.A. has been appointed
      as
      the Master Servicer of the Mortgage Loans pursuant to the Pooling and Servicing
      Agreement and, therefore, has the right to enforce all obligations of the
      Servicer under the Servicing Agreement as modified by this AAR Agreement.
 Such rights will include, without limitation, the right to terminate the
      Servicer under the Servicing Agreement upon the occurrence of an Event of
      Default thereunder, the right to receive all remittances required to be made
      by
      the Servicer under the Servicing Agreement, the right to receive all monthly
      reports and other data required to be delivered by the Servicer under the
      Servicing Agreement, the right to examine the books and records of the Servicer,
      and the right to exercise certain rights of consent and approval relating to
      actions taken by the Servicer.  Notwithstanding the foregoing, it is
      understood that the Servicer shall not be obligated to defend and indemnify
      and
      hold harmless the Master Servicer, the Assignor and the Assignee against any
      losses, damages, penalties, fines, forfeitures, judgments and any related costs
      including, without limitation, reasonable and necessary legal fees, resulting
      from (i) action or inactions of the Servicer which were taken or omitted upon
      the instruction or direction of the Master Servicer or Assignee, as applicable,
      or (ii) the failure of the Master Servicer or the Assignee, as applicable,
      to
      perform the obligations of the Assignee or “Owner” with respect to the servicing
      provisions of the Servicing Agreement. A copy of all assessments, attestations,
      reports and certifications required to be delivered by the Servicer under this
      AAR Agreement and the Servicing Agreement shall be delivered to the Master
      Servicer, and where such documents are required to be addressed to any party
      other than the Servicer, such addressee(s) shall include the Master Servicer
      and
      the Master Servicer shall be entitled to rely on such documents.  The
      Servicer shall make all distributions under the Servicing Agreement to the
      Master Servicer by wire transfer of immediately available funds to:

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Wells
      Fargo Bank, N.A.

    ABA
      Number: 121000248

    Account
      Name: SAS Clearing

    Account
      Number: 3970771416

    For
      further credit to: ACE 2007-HE4; Account #53147600

    

    The
      Servicer shall deliver all reports required to be delivered under the Servicing
      Agreement to the Assignee and the Master Servicer at their respective addresses
      set forth in Section 6 herein.

    

    (d) This
      AAR
      Agreement shall be construed in accordance with the laws of the State of New
      York, without regard to conflicts of law principles, and the obligations, rights
      and remedies of the parties hereunder shall be determined in accordance with
      such laws.

     

    (e) No
      term
      or provision of this AAR Agreement may be waived or modified unless such waiver
      or modification is in writing and signed by the party against whom such waiver
      or modification is sought to be enforced, with the prior written consent of
      the
      Trustee.

     

    (f) This
      AAR
      Agreement shall inure to the benefit of (i) the successors and assigns of
      the parties hereto and (ii) the Trust (including the Trustee and the
      Servicer acting on the Trust’s behalf).  Any entity into which the
      Assignor, Assignee or Servicer may be merged or consolidated shall, without
      the
      requirement for any further writing, be deemed Assignor, Assignee or Servicer,
      respectively, hereunder.

     

    (g) Each
      of
      this AAR Agreement and the Servicing Agreement shall survive the conveyance
      of
      the Mortgage Loans and the assignment of the Servicing Agreement (to the extent
      assigned hereunder) by the Assignor to the Assignee and by Assignee to the
      Trust
      and nothing contained herein shall supersede or amend the terms of the Servicing
      Agreement.

     

    (h) This
      AAR
      Agreement may be executed simultaneously in any number of counterparts.
 Each counterpart shall be deemed to be an original and all such
      counterparts shall constitute one and the same instrument.

     

    (i) In
      the
      event that any provision of this AAR Agreement conflicts with any provision
      of
      the Servicing Agreement with respect to the Mortgage Loans, the terms of this
      AAR Agreement shall control.

     

    (j) Capitalized
      terms used in this AAR Agreement (including the exhibits hereto) but not defined
      in this AAR Agreement shall have the meanings given to such terms in the
      Servicing Agreement.

     

    (k) For
      purposes of this AAR Agreement, the Master Servicer shall be considered a third
      party beneficiary to this AAR Agreement entitled to all the rights and benefits
      accruing to the Master Servicer as if it were a direct party to this AAR
      Agreement.

     

     

    [SIGNATURE
      PAGE FOLLOWS]

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, the parties have caused this AAR Agreement to be executed
      by
      their duly authorized officers as of the date first above written.

    

    DB
      STRUCTURED PRODUCTS, INC. as Assignor

     

    By:
      /s/ Ernest Calabrese        

    Name:
      Ernest Calabrese

    Title:
      Director

     

    By:
      /s/ Susan Valenti          

    Name:
      Susan Valenti

    Title:
      Director

     

    ACE
      SECURITIES CORP., as Assignee

     

    By:
      /s/ Evelyn Echevarria        

    Name:
      Evelyn Echevarria

    Title:
      Vice President

     

    By:
      /s/ Doris J. Hearn          

    Name:
      Doris J. Hearn

    Title:
      Vice President

     

    COUNTRYWIDE
      HOME LOANS SERVICING LP, as Servicer

    By:
      Countrywide GP, Inc., its General Partner

     

    By:
      /s/ Thomas P. Lin          

    Name:
      Thomas P. Lin

    Title:
      Senior Vice President

     

    ACKNOWLEDGED
      AND AGREED TO:

     

    WELLS
      FARGO BANK, N.A., as Master Servicer

     
      

    By:
      /s/ Stacey M. Taylor        

    Name:
      Stacey M. Taylor

    Title:
      Vice President

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      A

    

    MORTGAGE
      LOANS

    

    [ON
      FILE WITH THE SPONSOR]

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ATTACHMENT
      1

    

    FLOW
      SERVICING AGREEMENT

    

    [ON
      FILE]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ATTACHMENT
      2 

    

    COMMITMENT
      LETTER

    

    [ON
      FILE]

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ATTACHMENT
      4

     

    EXHIBIT
      16

     

    STANDARD
      FILE LAYOUT - DELINQUENCY REPORTING AND REALIZED LOSSES AND GAINS

    

    Exhibit
      1 : Standard
      File Layout - Delinquency Reporting

    
 

    
      	
              Column
                Name

            	
              Description

            	
              Decimal

            	
              Format
                Comment

            
	
              SER_INVESTOR_NBR

            	
              A
                value assigned by the Servicer to define a group of loans.

            	
               

            	
              Text
                up to 10 digits

            
	
              LOAN_NBR

            	
              A
                unique identifier assigned to each loan by the investor.

            	
               

            	
              Text
                up to 10 digits

            
	
              SERVICER_LOAN_NBR

            	
              A
                unique number assigned to a loan by the Servicer. This may be different
                than the LOAN_NBR.

            	
               

            	
              Text
                up to 10 digits

            
	
              BORROWER_NAME

            	
              The
                borrower name as received in the file. It is not separated by first
                and
                last name.

            	
               

            	
              Maximum
                length of 30 (Last, First)

            
	
              SCHED_PAY_AMT

            	
              Scheduled
                monthly principal and scheduled interest payment that a borrower
                is
                expected to pay, P&I constant.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
              NOTE_INT_RATE

            	
              The
                loan interest rate as reported by the Servicer.

            	
              4

            	
              Max
                length of 6

            
	
              NET_INT_RATE

            	
              The
                loan gross interest rate less the service fee rate as reported by
                the
                Servicer.

            	
              4

            	
              Max
                length of 6

            
	
              SERV_FEE_RATE

            	
              The
                servicer's fee rate for a loan as reported by the Servicer.
                

            	
              4

            	
              Max
                length of 6

            
	
              SERV_FEE_AMT

            	
              The
                servicer's fee amount for a loan as reported by the Servicer.
                

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
              NEW_PAY_AMT

            	
              The
                new loan payment amount as reported by the Servicer. 

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
              NEW_LOAN_RATE

            	
              The
                new loan rate as reported by the Servicer. 

            	
              4

            	
              Max
                length of 6

            
	
              ARM_INDEX_RATE

            	
              The
                index the Servicer is using to calculate a forecasted
                rate.

            	
              4

            	
              Max
                length of 6

            
	
              ACTL_BEG_PRIN_BAL

            	
              The
                borrower's actual principal balance at the beginning of the processing
                cycle.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
              ACTL_END_PRIN_BAL

            	
              The
                borrower's actual principal balance at the end of the processing
                cycle.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
              BORR_NEXT_PAY_DUE_DATE

            	
              The
                date at the end of processing cycle that the borrower's next payment
                is
                due to the Servicer, as reported by Servicer.

            	
               

            	
              MM/DD/YYYY

            
	
              SERV_CURT_AMT_1

            	
              The
                first curtailment amount to be applied.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
              SERV_CURT_DATE_1

            	
              The
                curtailment date associated with the first curtailment amount.
                

            	
               

            	
              MM/DD/YYYY

            
	
              CURT_ADJ_
                AMT_1

            	
              The
                curtailment interest on the first curtailment amount, if
                applicable.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
              SERV_CURT_AMT_2

            	
              The
                second curtailment amount to be applied.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
              SERV_CURT_DATE_2

            	
              The
                curtailment date associated with the second curtailment
                amount.

            	
               

            	
              MM/DD/YYYY

            
	
              CURT_ADJ_
                AMT_2

            	
              The
                curtailment interest on the second curtailment amount, if
                applicable.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
              SERV_CURT_AMT_3

            	
              The
                third curtailment amount to be applied.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
              SERV_CURT_DATE_3

            	
              The
                curtailment date associated with the third curtailment
                amount.

            	
               

            	
              MM/DD/YYYY

            
	
              CURT_ADJ_AMT_3

            	
              The
                curtailment interest on the third curtailment amount, if
                applicable.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
              PIF_AMT

            	
              The
                loan "paid in full" amount as reported by the Servicer.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
              PIF_DATE

            	
              The
                paid in full date as reported by the Servicer.

            	
               

            	
              MM/DD/YYYY

            
	
               

            	
               

            	
               

            	
              Action
                Code Key: 15=Bankruptcy, 30=Foreclosure, , 60=PIF, 63=Substitution,
                65=Repurchase,70=REO 

            

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    
      	
              Column
                Name

            	
              Description

            	
              Decimal

            	
              Format
                Comment

            
	
              ACTION_CODE

            	
              The
                standard FNMA numeric code used to indicate the default/delinquent
                status
                of a particular loan.

            	 	 
	
              INT_ADJ_AMT

            	
              The
                amount of the interest adjustment as reported by the
                Servicer.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
              SOLDIER_SAILOR_ADJ_AMT

            	
              The
                Soldier and Sailor Adjustment amount, if applicable.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
              NON_ADV_LOAN_AMT

            	
              The
                Non Recoverable Loan Amount, if applicable.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
              LOAN_LOSS_AMT

            	
              The
                amount the Servicer is passing as a loss, if applicable.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
              SCHED_BEG_PRIN_BAL

            	
              The
                scheduled outstanding principal amount due at the beginning of the
                cycle
                date to be passed through to investors.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
              SCHED_END_PRIN_BAL

            	
              The
                scheduled principal balance due to investors at the end of a processing
                cycle.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
              SCHED_PRIN_AMT

            	
              The
                scheduled principal amount as reported by the Servicer for the current
                cycle -- only applicable for Scheduled/Scheduled Loans.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
              SCHED_NET_INT

            	
              The
                scheduled gross interest amount less the service fee amount for the
                current cycle as reported by the Servicer -- only applicable for
                Scheduled/Scheduled Loans.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
              ACTL_PRIN_AMT

            	
              The
                actual principal amount collected by the Servicer for the current
                reporting cycle -- only applicable for Actual/Actual
                Loans.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
              ACTL_NET_INT

            	
              The
                actual gross interest amount less the service fee amount for the
                current
                reporting cycle as reported by the Servicer -- only applicable for
                Actual/Actual Loans.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
              PREPAY_PENALTY_
                AMT

            	
              The
                penalty amount received when a borrower prepays on his loan as reported
                by
                the Servicer. 

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
              PREPAY_PENALTY_
                WAIVED

            	
              The
                prepayment penalty amount for the loan waived by the
                servicer.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
               

            	
               

            	
               

            	
               

            
	
              MOD_DATE

            	
              The
                Effective Payment Date of the Modification for the loan.

            	
               

            	
              MM/DD/YYYY

            
	
              MOD_TYPE

            	
              The
                Modification Type.

            	
               

            	
              Varchar
                - value can be alpha or numeric

            
	
              DELINQ_P&I_ADVANCE_AMT

            	
              The
                current outstanding principal and interest advances made by
                Servicer.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            

    

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    

    Exhibit
      2: Standard
      File Codes - Delinquency Reporting

     

    The
      Loss
      Mit Type
      field
      should show the approved Loss Mitigation Code as follows: 

    
       

      
        	 	
                ·     
                  ASUM-

              	
                Approved
                  Assumption

              

      

       

      
        	 	
                ·     
                  BAP-

              	
                Borrower
                  Assistance Program

              

      

       

      
        	 	
                ·     
                  CO-

              	
                Charge
                  Off

              

      

       

      
        	 	
                ·     
                  DIL-

              	
                Deed-in-Lieu

              

      

       

      
        	 	
                ·     
                  FFA-

              	
                Formal
                  Forbearance Agreement

              

      

       

      
        	 	
                ·     
                  MOD-

              	
                Loan
                  Modification

              

      

       

      
        	 	
                ·     
                  PRE-

              	
                Pre-Sale

              

      

       

      
        	 	
                ·     
                  SS-

              	
                Short
                  Sale

              

      

       

      
        	 	
                ·     
                  MISC-

              	
                Anything
                  else approved by the PMI or Pool
                  Insurer

              

      

    

       

    NOTE:
      Wells
      Fargo Bank will accept alternative Loss Mitigation Types to those above,
      provided that they are consistent with industry standards. If Loss Mitigation
      Types other than those above are used, the Servicer must supply Wells Fargo
      Bank
      with a description of each of the Loss Mitigation Types prior to sending the
      file.

     

    The
      Occupant
      Code
      field
      should show the current status of the property code as follows:

     

    
      	 	
              ·

            	
              Mortgagor

            

    

     

    
      	 	
              ·

            	
              Tenant

            

    

     

    
      	 	
              ·

            	
              Unknown
                

            

    

     

    
      	 	
              ·

            	
              Vacant

            

    

     

    The
      Property
      Condition
      field
      should show the last reported condition of the property as follows:

     

    
      	 	
              ·

            	
              Damaged

            

    

     

    
      	 	
              ·

            	
              Excellent

            

    

     

    
      	 	
              ·

            	
              Fair

            

    

     

    
      	 	
              ·

            	
              Gone

            

    

     

    
      	 	
              ·

            	
              Good

            

    

     

    
      	 	
              ·

            	
              Poor

            

    

     

    
      	 	
              ·

            	
              Special
                Hazard

            

    

     

    
      	 	
              ·

            	
              Unknown

            

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    

      Exhibit
        2: Standard
        File Codes - Delinquency Reporting, Continued

       

      The
        FNMA
        Delinquent Reason Code
        field
        should show the Reason for Delinquency as follows: 

      

      
        	
                Delinquency
                  Code

              	
                Delinquency
                  Description

              
	
                001

              	
                FNMA-Death
                  of principal mortgagor

              
	
                002

              	
                FNMA-Illness
                  of principal mortgagor

              
	
                003

              	
                FNMA-Illness
                  of mortgagor’s family member

              
	
                004

              	
                FNMA-Death
                  of mortgagor’s family member

              
	
                005

              	
                FNMA-Marital
                  difficulties

              
	
                006

              	
                FNMA-Curtailment
                  of income

              
	
                007

              	
                FNMA-Excessive
                  Obligation

              
	
                008

              	
                FNMA-Abandonment
                  of property

              
	
                009

              	
                FNMA-Distant
                  employee transfer

              
	
                011

              	
                FNMA-Property
                  problem

              
	
                012

              	
                FNMA-Inability
                  to sell property

              
	
                013

              	
                FNMA-Inability
                  to rent property

              
	
                014

              	
                FNMA-Military
                  Service

              
	
                015

              	
                FNMA-Other

              
	
                016

              	
                FNMA-Unemployment

              
	
                017

              	
                FNMA-Business
                  failure

              
	
                019

              	
                FNMA-Casualty
                  loss

              
	
                022

              	
                FNMA-Energy
                  environment costs

              
	
                023

              	
                FNMA-Servicing
                  problems

              
	
                026

              	
                FNMA-Payment
                  adjustment

              
	
                027

              	
                FNMA-Payment
                  dispute

              
	
                029

              	
                FNMA-Transfer
                  of ownership pending

              
	
                030

              	
                FNMA-Fraud

              
	
                031

              	
                FNMA-Unable
                  to contact borrower

              
	
                INC

              	
                FNMA-Incarceration

              

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      Exhibit
        2: Standard
        File Codes - Delinquency Reporting, Continued

       

      The
        FNMA
        Delinquent Status Code
        field
        should show the Status of Default as follows: 

      

      
        	
                Status
                  Code

              	
                Status
                  Description

              
	
                09

              	
                Forbearance

              
	
                17

              	
                Pre-foreclosure
                  Sale Closing Plan Accepted

              
	
                24

              	
                Government
                  Seizure

              
	
                26

              	
                Refinance

              
	
                27

              	
                Assumption

              
	
                28

              	
                Modification

              
	
                29

              	
                Charge-Off

              
	
                30

              	
                Third
                  Party Sale

              
	
                31

              	
                Probate

              
	
                32

              	
                Military
                  Indulgence

              
	
                43

              	
                Foreclosure
                  Started

              
	
                44

              	
                Deed-in-Lieu
                  Started

              
	
                49

              	
                Assignment
                  Completed

              
	
                61

              	
                Second
                  Lien Considerations

              
	
                62

              	
                Veteran’s
                  Affairs-No Bid

              
	
                63

              	
                Veteran’s
                  Affairs-Refund

              
	
                64

              	
                Veteran’s
                  Affairs-Buydown

              
	
                65

              	
                Chapter
                  7 Bankruptcy

              
	
                66

              	
                Chapter
                  11 Bankruptcy

              
	
                67

              	
                Chapter
                  13 Bankruptcy

              

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Exhibit
        : Calculation
        of Realized Loss/Gain Form 332- Instruction Sheet

      

      NOTE:
        Do not net or combine items. Show all expenses individually and all credits
        as
        separate line items. Claim packages are due on the remittance report date.
        Late
        submissions may result in claims not being passed until the following month.
        

       

      The
        numbers on the 332 form correspond with the numbers listed below.

       

      Liquidation
        and Acquisition Expenses:

       

      
        	 	
                1.

              	
                The
                  Actual Unpaid Principal Balance of the Mortgage Loan. For documentation,
                  an Amortization Schedule from date of default through liquidation
                  breaking
                  out the net interest and servicing fees advanced is
                  required.

              

      

       

      
        	 	
                2.

              	
                The
                  Total Interest Due less the aggregate amount of servicing fee that
                  would
                  have been earned if all delinquent payments had been made as agreed.
                  For
                  documentation, an Amortization Schedule from date of default through
                  liquidation breaking out the net interest and servicing fees advanced
                  is
                  required.

              

      

       

      
        	 	
                3.
                  

              	
                Accrued
                  Servicing Fees based upon the Scheduled Principal Balance of the
                  Mortgage
                  Loan as calculated on a monthly basis. For documentation, an Amortization
                  Schedule from date of default through liquidation breaking out
                  the net
                  interest and servicing fees advanced is
                  required.

              

      

       

      
        	 	
                4-12.

              	
                Complete
                  as applicable. Required
                  documentation:

              

      

       

      *
        For
        taxes and insurance advances - see page 2 of 332 form - breakdown required
        showing period

      of
        coverage, base tax, interest, penalty. Advances prior to default require
        evidence of servicer efforts to recover advances.

       

      *
        For
        escrow advances - complete payment history 

      (to
        calculate advances from last positive escrow balance forward)

       

      *
        Other
        expenses -  copies of corporate advance history showing all payments

       

      *
        REO
        repairs > $1500 require explanation

       

      *
        REO
        repairs >$3000 require evidence of at least 2 bids.

       

      *
        Short
        Sale or Charge Off require P&L supporting the decision and
        WFB’s approved Officer Certificate 

       

      *
        Unusual
        or extraordinary items may require further documentation. 

       

      
        	 	
                13.

              	
                The
                  total of lines 1 through 12.

              

      

       

      Credits:
        

       

      
        	 	
                14-21.

              	
                Complete
                  as applicable. Required
                  documentation:

              

      

       

      *
        Copy of
        the HUD 1 from the REO sale. If a 3rd
        Party
        Sale, bid instructions and Escrow
        Agent / Attorney

       

      Letter
        of
        Proceeds
        Breakdown.

       

      *
        Copy of
        EOB for any MI or gov't guarantee 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      *
        All
        other credits need to be clearly defined on the 332
        form            

       

      
        	 	
                22.

              	
                The
                  total of lines 14 through 21.

              

      

       

      Please
        Note:  For
        HUD/VA loans, use line (18a) for Part A/Initial proceeds and line (18b) for
        Part
        B/Supplemental proceeds.

       

      Total
        Realized Loss (or Amount of Any Gain)

      23.    The
        total
        derived from subtracting line 22 from 13. If the amount represents a realized
        gain, show
        the
        amount in parenthesis ( ). 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Exhibit
        3A: Calculation
        of Realized Loss/Gain Form 332

       

      Prepared
        by: __________________   Date:
        _______________

      Phone:
        ______________________ Email Address:_____________________

      
        	 	 	 	 	 
	
                Servicer
                  Loan No.

              	 	
                Servicer
                  Name

              	 	
                Servicer
                  Address 

                 

              

      

       

      WELLS
        FARGO BANK, N.A. Loan No._____________________________

       

      Borrower's
        Name: _________________________________________________________

      Property
        Address: _________________________________________________________

       

      Liquidation
        Type: REO Sale  
        3rd
        Party Sale  Short
        Sale     Charge
        Off 

       

      Was
        this loan granted a Bankruptcy deficiency or cramdown  Yes      No

      If
“Yes”,
        provide deficiency or cramdown amount
        _______________________________

       

      
        	
                Liquidation
                  and Acquisition Expenses:

              	 	 
	
                (1)

              	
                Actual
                  Unpaid Principal Balance of Mortgage Loan

              	
                $
                  ______________

              	
                (1)

              
	
                (2)

              	
                Interest
                  accrued at Net Rate

              	
                ________________

              	
                (2)

              
	
                (3)

              	
                Accrued
                  Servicing Fees

              	
                ________________

              	
                (3)

              
	
                (4)

              	
                Attorney's
                  Fees

              	
                ________________

              	
                (4)

              
	
                (5)

              	
                Taxes
                  (see page 2)

              	
                ________________

              	
                (5)

              
	
                (6)

              	
                Property
                  Maintenance

              	
                ________________

              	
                (6)

              
	
                (7)

              	
                MI/Hazard
                  Insurance Premiums (see page 2)

              	
                ________________

              	
                (7)

              
	
                (8)

              	
                Utility
                  Expenses

              	
                ________________

              	
                (8)

              
	
                (9)

              	
                Appraisal/BPO

              	
                ________________

              	
                (9)

              
	
                (10)

              	
                Property
                  Inspections

              	
                ________________

              	
                (10)

              
	
                (11)

              	
                FC
                  Costs/Other Legal Expenses

              	
                ________________

              	
                (11)

              
	
                (12)

              	
                Other
                  (itemize)

              	
                ________________

              	
                (12)

              
	 	
                Cash
                  for Keys__________________________

              	
                ________________

              	
                (12)

              
	 	
                HOA/Condo
                  Fees_______________________

              	
                ________________

              	
                (12)

              
	 	
                ______________________________________

              	
                ________________

              	
                (12)

              
	 	 	 	 
	 	
                Total
                  Expenses

              	
                $
                  _______________

              	
                (13)

              
	
                Credits:

              	 	 	 
	
                (14)

              	
                Escrow
                  Balance

              	
                $
                  _______________

              	
                (14)

              
	
                (15)

              	
                HIP
                  Refund

              	
                ________________

              	
                (15)

              
	
                (16)

              	
                Rental
                  Receipts

              	
                ________________

              	
                (16)

              
	
                (17)

              	
                Hazard
                  Loss Proceeds

              	
                ________________

              	
                (17)

              
	
                (18)

              	
                Primary
                  Mortgage Insurance / Gov’t Insurance

              	
                ________________

              	
                (18a)
                  HUD Part A

              
	 	 	
                ________________
                  

              	
                (18b)
                  HUD Part B

              
	
                (19)

              	
                Pool
                  Insurance Proceeds

              	
                ________________

              	
                (19)

              
	
                (20)

              	
                Proceeds
                  from Sale of Acquired Property

              	
                ________________

              	
                (20)

              
	
                (21)

              	
                Other
                  (itemize)

              	
                ________________

              	
                (21)

              
	 	
                _________________________________________

              	
                ________________

              	
                (21)

              
	 	 	 	 
	 	
                Total
                  Credits

              	
                $________________

              	
                (22)

              
	
                Total
                  Realized Loss (or Amount of Gain)

              	
                $________________

              	
                (23)

              

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Escrow
        Disbursement Detail

      

      
        	
                Type

                (Tax
                  /Ins.)

              	
                Date
                  Paid

              	
                Period
                  of Coverage

              	
                Total
                  Paid

              	
                Base
                  Amount

              	
                Penalties

              	
                Interest

              
	
                 

                 

              	 	 	 	 	 	 
	
                 

                 

              	 	 	 	 	 	 
	
                 

                 

              	 	 	 	 	 	 
	
                 

                 

              	 	 	 	 	 	 
	
                 

                 

              	 	 	 	 	 	 
	
                 

                 

              	 	 	 	 	 	 
	
                 

                 

              	 	 	 	 	 	 
	
                 

                 

              	 	 	 	 	 	 

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      Standard
        File Layout - Delinquency Reporting

      

      REPORTING
        DATA FOR DEFAULTED LOANS 

       

      Data
        must
        be submitted to Wells Fargo Bank in an Excel
        spreadsheet format with fixed field names and data type. The Excel
        spreadsheet should be used as a template consistently every month when
        submitting data. 

       

      
        	 	 	 
	
                Table:
                  Delinquency 

              	 	 
	
                Name
                  

              	
                Type
                  

              	
                Size
                  

              
	
                Servicer
                  Loan # 

              	
                Number
                  

              	
                8
                  

              
	 	
                (Double)
                  

              	 
	
                Investor
                  Loan # 

              	
                Number
                  

              	
                8
                  

              
	 	
                (Double)
                  

              	 
	
                Borrower
                  Name 

              	
                Text
                  

              	
                20
                  

              
	
                Address
                  

              	
                Text
                  

              	
                30
                  

              
	
                State
                  

              	
                Text
                  

              	
                2
                  

              
	
                Due
                  Date 

              	
                Date/Time
                  

              	
                8
                  

              
	
                Action
                  Code 

              	
                Text
                  

              	
                2
                  

              
	
                FC
                  Received 

              	
                Date/Time
                  

              	
                8
                  

              
	
                File
                  Referred to Atty 

              	
                Date/Time
                  

              	
                8
                  

              
	
                NOD
                  

              	
                Date/Time
                  

              	
                8
                  

              
	
                Complaint
                  Filed 

              	
                Date/Time
                  

              	
                8
                  

              
	
                Sale
                  Published 

              	
                Date/Time
                  

              	
                8
                  

              
	
                Target
                  Sale Date 

              	
                Date/Time
                  

              	
                8
                  

              
	
                Actual
                  Sale Date 

              	
                Date/Time
                  

              	
                8
                  

              
	
                Loss
                  Mit Approval Date 

              	
                Date/Time
                  

              	
                8
                  

              
	
                Loss
                  Mit Type 

              	
                Text
                  

              	
                5
                  

              
	
                Loss
                  Mit Estimated Completion 

              	
                Date/Time
                  

              	
                8
                  

              
	
                Date
                  

              	 	 
	
                Loss
                  Mit Actual Completion Date 

              	
                Date/Time
                  

              	
                8
                  

              
	
                Loss
                  Mit Broken Plan Date 

              	
                Date/Time
                  

              	
                8
                  

              
	
                BK
                  Chapter 

              	
                Text
                  

              	
                6
                  

              
	
                BK
                  Filed Date 

              	
                Date/Time
                  

              	
                8
                  

              
	
                Post
                  Petition Due 

              	
                Date/Time
                  

              	
                8
                  

              
	
                Motion
                  for Relief 

              	
                Date/Time
                  

              	
                8
                  

              
	
                Lift
                  of Stay 

              	
                Date/Time
                  

              	
                8
                  

              
	
                RFD
                  

              	
                Text
                  

              	
                10
                  

              
	
                Occupant
                  Code 

              	
                Text
                  

              	
                10
                  

              
	
                Eviction
                  Start Date 

              	
                Date/Time
                  

              	
                8
                  

              
	
                Eviction
                  Completed Date 

              	
                Date/Time
                  

              	
                8
                  

              
	
                List
                  Price 

              	
                Currency
                  

              	
                8
                  

              
	
                List
                  Date 

              	
                Date/Time
                  

              	
                8
                  

              
	
                Accepted
                  Offer Price 

              	
                Currency
                  

              	
                8
                  

              
	
                Accepted
                  Offer Date 

              	
                Date/Time
                  

              	
                8
                  

              
	
                Estimated
                  REO Closing Date 

              	
                Date/Time
                  

              	
                8
                  

              
	
                Actual
                  REO Sale Date

              	
                Date/Time

              	
                8

              

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      •  Items
        in bold are MANDATORY FIELDS. We must receive information in those fields
        every
        month in order for your file to be accepted.
        

       

      The
        Action Code Field should show the applicable numeric code to indicate that
        a
        special action is being taken. The Action Codes are the following: 

       

      12-Relief
        Provisions 

      15-Bankruptcy/Litigation
        

      20-Referred
        for Deed-in-Lieu 

      30-Referred
        fore Foreclosure 

      60-Payoff
        

      65-Repurchase
        

      70-REO-Held
        for Sale 

      71-Third
        Party Sale/Condemnation 

      72-REO-Pending
        Conveyance-Pool Insurance claim filed 

       

      Wells
        Fargo Bank will accept alternative Action Codes to those above, provided
        that
        the Codes are consistent with industry standards. If Action Codes other than
        those above are used, the Servicer must supply Wells Fargo Bank with a
        description of each of the Action Codes prior to sending the file. 

       

      Description
        of Action Codes: 

       

      Action
        Code 12
        - To report a Mortgage Loan for which the Borrower has been granted relief
        for
        curing a delinquency. The Action Date is the date the relief is expected
        to end.
        For military indulgence, it will be three months after the Borrower’s discharge
        from military service. 

       

      Action
        Code 15
        - To report the Borrower’s filing for bankruptcy or instituting some other type
        of litigation that will prevent or delay liquidation of the Mortgage Loan.
        The
        Action Date will be either the date that any repayment plan (or forbearance)
        instituted by the bankruptcy court will expire or an additional date by which
        the litigation should be resolved. 

       

      Action
        Code 20
        - To report that the Borrower has agreed to a deed-in-lieu or an assignment
        of
        the property. The Action Date is the date the Servicer decided to pursue
        a
        deed-in-lieu or the assignment. 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Action
        Code 30
        - To report that the decision has been made to foreclose the Mortgage Loan.
        The
        Action Date is the date the Servicer referred the case to the foreclosure
        attorney.

      

      Action
        Code 60
        - To report that a Mortgage Loan has been paid in full either at, or prior
        to,
        maturity. The Action Date is the date the pay-off funds were remitted to
        the
        Master Servicer. 

       

      Action
        Code 65
        - To report that the Servicer is repurchasing the Mortgage Loan. The Action
        Date
        is the date the repurchase proceeds were remitted to the Master Servicer.
        

       

      Action
        Code 70
        - To report that a Mortgage Loan has been foreclosed or a deed-in-lieu of
        foreclosure has been accepted, and the Servicer, on behalf of the owner of
        the
        Mortgage Loan, has acquired the property and may dispose of it. The Action
        Date
        is the date of the foreclosure sale or, for deeds-in-lieu, the date the deed
        is
        recorded on behalf of the owner of the Mortgage Loan. 

       

      Action
        Code 71
        - To report that a Mortgage Loan has been foreclosed and a third party acquired
        the property, or a total condemnation of the property has occurred. The Action
        Date is the date of the foreclosure sale or the date the condemnation award
        was
        received. 

       

      Action
        Code 72
        - To report that a Mortgage Loan has been foreclosed, or a deed-in-lieu has
        been
        accepted, and the property may be conveyed to the mortgage insurer and the
        pool
        insurance claim has been filed. The Action Date is the date of the foreclosure
        sale, or, for deeds-in-lieu, the date of the deed for conventional mortgages.
        

       

      The
        Loss Mit Type field should show the approved Loss Mitigation arrangement.
        The
        following are acceptable: 

       

      ASUM-Approved
        Assumption 

      BAP-Borrower
        Assistance Program 

      CO-Charge
        Off 

      DIL-Deed-in-Lieu
        

      FFA-Formal
        Forbearance Agreement 

      MOD-Loan
        Modification 

      PRE-Pre-Sale
        

      SS-Short
        Sale 

      MISC-Anything
        else approved by the PMI or Pool Insurer 

       

      Wells
        Fargo Bank will accept alternative Loss Mitigation Types to those above,
        provided that they are consistent with industry standards. If Loss Mitigation
        Types other than those above are used, the Servicer must supply Wells Fargo
        Bank
        with a description of each of the Loss Mitigation Types prior to sending
        the
        file.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      The
        Occupant Code field should show the current status of the property. The
        acceptable codes are: 

       

      Mortgagor
        

      Tenant
        

      Unknown
        

      Vacant
        

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Exhibit
        3A: Calculation
        of Realized Loss/Gain Form 332

       

      REALIZED
        LOSS CALCULATION INFORMATION 

       

      WELLS
        FARGO BANK, N.A. Form 332

      

      Calculation
        of Realized Loss 

       

      Purpose
        

       

      To
        provide the Servicer with a form for the calculation of any Realized Loss
        (or
        gain) as a result of a Mortgage Loan having been foreclosed and Liquidated.
        

       

      Distribution
        

       

      The
        Servicer will prepare the form in duplicate and send the original together
        with
        evidence of conveyance of title and appropriate supporting documentation
        to the
        Master Servicer with the Monthly Accounting Reports which supports the Mortgage
        Loan’s removal from the Mortgage Loan Activity Report. The Servicer will retain
        the duplicate for its own records. 

       

      Due
        Date 

       

      With
        respect to any liquidated Mortgage Loan, the form will be submitted to the
        Master Servicer no later than the date on which statements are due to the
        Master
        Servicer under Section 4.02 of this Agreement (the “Statement Date”) in the
        month following receipt of final liquidation proceeds and supporting
        documentation relating to such liquidated Mortgage Loan; provided, that if
        such
        Statement Date is not at least 30 days after receipt of final liquidation
        proceeds and supporting documentation relating to such liquidated Mortgage
        Loan,
        then the form will be submitted on the first Statement Date occurring after
        the
        30th
        day
        following receipt of final liquidation proceeds and supporting documentation.
        

       

      Preparation
        Instructions 

       

      The
        numbers on the form correspond with the numbers listed below. 

       

      1. The
        actual Unpaid Principal Balance of the Mortgage Loan. 

      2. The
        Total Interest Due less the aggregate amount of servicing fee that would
        have
        been earned if all delinquent payments had been made as agreed. 

      

      1.    3-7.
         Complete
        as necessary. All line entries must be supported by copies of appropriate
        statements, 

      (a) vouchers,
        receipts, canceled checks, etc., to document the expense. Entries not properly
        

      documented
        will not be reimbursed to the Servicer. 

       

      2.    8.
         Accrued
        Servicing Fees based upon the Scheduled Principal Balance of the Mortgage
        Loan
        as calculated on a monthly basis. 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
        	
                10.
                  

              	
                The
                  total of lines 1 through 9. 

              

      

       

      Credits
        

       

      
        	
                11-17.
                  

              	
                Complete
                  as necessary. All line entries must be supported by copies of the
                  appropriate claims forms, statements, payment checks, etc. to document
                  the
                  credit. If the Mortgage Loan is subject to a Bankruptcy Deficiency,
                  the
                  difference between the Unpaid Principal Balance of the Note prior
                  to the
                  Bankruptcy Deficiency and the Unpaid Principal Balance as reduced
                  by the
                  Bankruptcy Deficiency should be input on line 16.
                  

              

      

       

      
        	
                18.

              	
                The
                  total of lines 11 through 17. 

              

      

       

      Total
        Realized Loss (or Amount of Any Gain) 

       

      3.    19.
         The
        total
        derived from subtracting line 18 from 10. If the amount represents a realized
        gain, show the amount in parenthesis ( ). 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      WELLS
        FARGO BANK, N.A. 

      CALCULATION
        OF REALIZED LOSS

       

      WELLS
        FARGO BANK, N.A. Trust: ___________________________

       

      Prepared
        by: __________________ Date: _______________ 

       

      Phone:
        ______________________ 

       

      (1) Servicer
        Loan No.   Servicer
        Name    Servicer
        Address 

       

      WELLS
        FARGO BANK, N.A. 

      Loan
        No._____________________________ 

      Borrower’s
        Name:________________________________________________________ 

      Property

      Address:________________________________________________________________
        

      

      
        	
                Liquidation
                  and Acquisition Expenses: 

              	 
	
                Actual
                  Unpaid Principal Balance of Mortgage Loan 

              	
                $
                  _______________(1) 

              
	
                Interest
                  accrued at Net Rate 

              	
                ________________(2)
                  

              
	
                Attorney’s
                  Fees 

              	
                ________________(3)
                  

              
	
                Taxes
                  

              	
                ________________(4)
                  

              
	
                Property
                  Maintenance 

              	
                ________________(5)
                  

              
	
                MI/Hazard
                  Insurance Premiums 

              	
                ________________(6)
                  

              
	
                Hazard
                  Loss Expenses 

              	
                ________________(7)
                  

              
	
                Accrued
                  Servicing Fees 

              	
                ________________(8)
                  

              
	
                Other
                  (itemize) 

              	
                ________________(9)
                  

              
	 	
                $
                  _________________ 

              
	 	 
	 	 
	
                Total
                  Expenses

              	
                $
                  ______________(10) 

              
	
                Credits:
                  

              	 
	
                Escrow
                  Balance 

              	
                $
                  ______________(11) 

              
	
                HIP
                  Refund 

              	
                ________________(12)
                  

              
	
                Rental
                  Receipts 

              	
                ________________(13)
                  

              
	
                Hazard
                  Loss Proceeds 

              	
                ________________(14)
                  

              
	
                Primary
                  Mortgage Insurance Proceeds 

              	
                ________________(15)
                  

              
	
                Proceeds
                  from Sale of Acquired Property 

              	
                ________________(16)
                  

              
	
                Other
                  (itemize) 

              	
                ________________(17)
                  

              
	 	
                ___________________
                  

              
	 	
                ___________________
                  

              
	
                Total
                  Credits

              	
                $________________(18)
                  

              

      

      

      Total
        Realized Loss (or Amount
        of Gain)
        $________________

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      STANDARD
        FILE LAYOUT- MASTER SERVICING 

      

      
        	
                Standard
                  File Layout - Master Servicing 

              	  
	  
	  

	
                Column
                  Name

              	
                Description

              	
                Decimal

              	
                Format
                  Comment

              	
                Max
                  Size

              
	
                SER_INVESTOR_NBR

              	
                A
                  value assigned by the Servicer to define a group of loans.

              	
                 

              	
                Text
                  up to 10 digits

              	
                20

              
	
                LOAN_NBR

              	
                A
                  unique identifier assigned to each loan by the investor.

              	
                 

              	
                Text
                  up to 10 digits

              	
                10

              
	
                SERVICER_LOAN_NBR

              	
                A
                  unique number assigned to a loan by the Servicer. This may be different
                  than the LOAN_NBR.

              	
                 

              	
                Text
                  up to 10 digits

              	
                10

              
	
                BORROWER_NAME

              	
                The
                  borrower name as received in the file. It is not separated by first
                  and
                  last name.

              	
                 

              	
                Maximum
                  length of 30 (Last, First)

              	
                30

              
	
                SCHED_PAY_AMT

              	
                Scheduled
                  monthly principal and scheduled interest payment that a borrower
                  is
                  expected to pay, P&I constant.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                NOTE_INT_RATE

              	
                The
                  loan interest rate as reported by the Servicer.

              	
                4

              	
                Max
                  length of 6

              	
                6

              
	
                NET_INT_RATE

              	
                The
                  loan gross interest rate less the service fee rate as reported
                  by the
                  Servicer.

              	
                4

              	
                Max
                  length of 6

              	
                6

              
	
                SERV_FEE_RATE

              	
                The
                  servicer's fee rate for a loan as reported by the Servicer.
                  

              	
                4

              	
                Max
                  length of 6

              	
                6

              
	
                SERV_FEE_AMT

              	
                The
                  servicer's fee amount for a loan as reported by the Servicer.
                  

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                NEW_PAY_AMT

              	
                The
                  new loan payment amount as reported by the Servicer. 

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                NEW_LOAN_RATE

              	
                The
                  new loan rate as reported by the Servicer. 

              	
                4

              	
                Max
                  length of 6

              	
                6

              
	
                ARM_INDEX_RATE

              	
                The
                  index the Servicer is using to calculate a forecasted
                  rate.

              	
                4

              	
                Max
                  length of 6

              	
                6

              
	
                ACTL_BEG_PRIN_BAL

              	
                The
                  borrower's actual principal balance at the beginning of the processing
                  cycle.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                ACTL_END_PRIN_BAL

              	
                The
                  borrower's actual principal balance at the end of the processing
                  cycle.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                BORR_NEXT_PAY_DUE_DATE

              	
                The
                  date at the end of processing cycle that the borrower's next payment
                  is
                  due to the Servicer, as reported by Servicer.

              	
                 

              	
                MM/DD/YYYY

              	
                10

              
	
                SERV_CURT_AMT_1

              	
                The
                  first curtailment amount to be applied.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SERV_CURT_DATE_1

              	
                The
                  curtailment date associated with the first curtailment amount.
                  

              	
                 

              	
                MM/DD/YYYY

              	
                10

              
	
                CURT_ADJ_
                  AMT_1

              	
                The
                  curtailment interest on the first curtailment amount, if
                  applicable.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SERV_CURT_AMT_2

              	
                The
                  second curtailment amount to be applied.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SERV_CURT_DATE_2

              	
                The
                  curtailment date associated with the second curtailment
                  amount.

              	
                 

              	
                MM/DD/YYYY

              	
                10

              
	
                CURT_ADJ_
                  AMT_2

              	
                The
                  curtailment interest on the second curtailment amount, if
                  applicable.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SERV_CURT_AMT_3

              	
                The
                  third curtailment amount to be applied.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SERV_CURT_DATE_3

              	
                The
                  curtailment date associated with the third curtailment
                  amount.

              	
                 

              	
                MM/DD/YYYY

              	
                10

              

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	
                Standard
                  File Layout - Master Servicing 

              	  
	  
	  

	
                Column
                  Name

              	
                Description

              	
                Decimal

              	
                Format
                  Comment

              	
                Max
                  Size

              
	
                CURT_ADJ_AMT_3

              	
                The
                  curtailment interest on the third curtailment amount, if
                  applicable.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                PIF_AMT

              	
                The
                  loan "paid in full" amount as reported by the Servicer.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                PIF_DATE

              	
                The
                  paid in full date as reported by the Servicer.

              	
                 

              	
                MM/DD/YYYY

              	
                10

              
	
                 

              	
                 

              	
                 

              	
                Action
                  Code Key: 15=Bankruptcy, 30=Foreclosure, , 60=PIF, 63=Substitution,
                  65=Repurchase,70=REO 

              	
                2

              
	
                ACTION_CODE

              	
                The
                  standard FNMA numeric code used to indicate the default/delinquent
                  status
                  of a particular loan.

              
	
                INT_ADJ_AMT

              	
                The
                  amount of the interest adjustment as reported by the
                  Servicer.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SOLDIER_SAILOR_ADJ_AMT

              	
                The
                  Soldier and Sailor Adjustment amount, if applicable.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                NON_ADV_LOAN_AMT

              	
                The
                  Non Recoverable Loan Amount, if applicable.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                LOAN_LOSS_AMT

              	
                The
                  amount the Servicer is passing as a loss, if applicable.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SCHED_BEG_PRIN_BAL

              	
                The
                  scheduled outstanding principal amount due at the beginning of
                  the cycle
                  date to be passed through to investors.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SCHED_END_PRIN_BAL

              	
                The
                  scheduled principal balance due to investors at the end of a processing
                  cycle.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SCHED_PRIN_AMT

              	
                The
                  scheduled principal amount as reported by the Servicer for the
                  current
                  cycle -- only applicable for Scheduled/Scheduled Loans.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SCHED_NET_INT

              	
                The
                  scheduled gross interest amount less the service fee amount for
                  the
                  current cycle as reported by the Servicer -- only applicable for
                  Scheduled/Scheduled Loans.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                ACTL_PRIN_AMT

              	
                The
                  actual principal amount collected by the Servicer for the current
                  reporting cycle -- only applicable for Actual/Actual
                  Loans.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                ACTL_NET_INT

              	
                The
                  actual gross interest amount less the service fee amount for the
                  current
                  reporting cycle as reported by the Servicer -- only applicable
                  for
                  Actual/Actual Loans.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                PREPAY_PENALTY_
                  AMT

              	
                The
                  penalty amount received when a borrower prepays on his loan as
                  reported by
                  the Servicer. 

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                PREPAY_PENALTY_
                  WAIVED

              	
                The
                  prepayment penalty amount for the loan waived by the
                  servicer.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              
	
                MOD_DATE

              	
                The
                  Effective Payment Date of the Modification for the loan.

              	
                 

              	
                MM/DD/YYYY

              	
                10

              
	
                MOD_TYPE

              	
                The
                  Modification Type.

              	
                 

              	
                Varchar
                  - value can be alpha or numeric

              	
                30

              
	
                DELINQ_P&I_ADVANCE_AMT

              	
                The
                  current outstanding principal and interest advances made by
                  Servicer.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	 	 	 	 	 

      

       
 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

    

    SCHEDULE
      1

    

    MORTGAGE
      LOAN SCHEDULE

    

    [PROVIDED
      UPON REQUEST]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    SCHEDULE
      2

    

    PREPAYMENT
      CHARGE SCHEDULE

    

    [PROVIDED
      UPON REQUEST]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    SCHEDULE
      3

    

    [RESERVED]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    SCHEDULE
      4

    

    STANDARD
      FILE LAYOUT - DELINQUENCY REPORTING AND REALIZED LOSSES AND
      GAINS

    

    Exhibit
      : Standard
      File Layout - Delinquency Reporting

    
      

        
          	
                  Column/Header
                    Name

                	
                  Description

                	
                  Decimal

                	
                  Format
                    Comment

                
	
                  SERVICER_LOAN_NBR

                	
                  A
                    unique number assigned to a loan by the Servicer. This may be
                    different
                    than the LOAN_NBR

                	 	
                   

                
	
                  LOAN_NBR

                	
                  A
                    unique identifier assigned to each loan by the originator.

                	 	
                   

                
	
                  CLIENT_NBR

                	
                  Servicer
                    Client Number

                	 	 
	
                  SERV_INVESTOR_NBR

                	
                  Contains
                    a unique number as assigned by an external servicer to identify
                    a group of
                    loans in their system.

                	 	
                   

                
	
                  BORROWER_FIRST_NAME

                	
                  First
                    Name of the Borrower.

                	 	 
	
                  BORROWER_LAST_NAME

                	
                  Last
                    name of the borrower.

                	 	 
	
                  PROP_ADDRESS

                	
                  Street
                    Name and Number of Property

                	 	
                   

                
	
                  PROP_STATE

                	
                  The
                    state where the property located.

                	 	
                   

                
	
                  PROP_ZIP

                	
                  Zip
                    code where the property is located.

                	 	
                   

                
	
                  BORR_NEXT_PAY_DUE_DATE

                	
                  The
                    date that the borrower's next payment is due to the servicer
                    at the end of
                    processing cycle, as reported by Servicer.

                	 	
                  MM/DD/YYYY

                
	
                  LOAN_TYPE

                	
                  Loan
                    Type (i.e. FHA, VA, Conv)

                	 	
                   

                
	
                  BANKRUPTCY_FILED_DATE

                	
                  The
                    date a particular bankruptcy claim was filed.

                	 	
                  MM/DD/YYYY

                
	
                  BANKRUPTCY_CHAPTER_CODE

                	
                  The
                    chapter under which the bankruptcy was filed.

                	 	
                   

                
	
                  BANKRUPTCY_CASE_NBR

                	
                  The
                    case number assigned by the court to the bankruptcy
                    filing.

                	 	
                   

                
	
                  POST_PETITION_DUE_DATE

                	
                  The
                    payment due date once the bankruptcy has been approved by the
                    courts

                	 	
                  MM/DD/YYYY

                
	
                  BANKRUPTCY_DCHRG_DISM_DATE

                	
                  The
                    Date The Loan Is Removed From Bankruptcy. Either by Dismissal,
                    Discharged
                    and/or a Motion For Relief Was Granted. 

                	 	
                  MM/DD/YYYY

                
	
                  LOSS_MIT_APPR_DATE

                	
                  The
                    Date The Loss Mitigation Was Approved By The Servicer

                	 	
                  MM/DD/YYYY

                
	
                  LOSS_MIT_TYPE

                	
                  The
                    Type Of Loss Mitigation Approved For A Loan Such As;

                	 	 
	
                  LOSS_MIT_EST_COMP_DATE

                	
                  The
                    Date The Loss Mitigation /Plan Is Scheduled To End/Close

                	 	
                  MM/DD/YYYY

                
	
                  LOSS_MIT_ACT_COMP_DATE

                	
                  The
                    Date The Loss Mitigation Is Actually Completed

                	 	
                  MM/DD/YYYY

                
	
                  FRCLSR_APPROVED_DATE

                	
                  The
                    date DA Admin sends a letter to the servicer with instructions
                    to begin
                    foreclosure proceedings.

                	 	
                  MM/DD/YYYY

                
	
                  ATTORNEY_REFERRAL_DATE

                	
                  Date
                    File Was Referred To Attorney to Pursue Foreclosure

                	 	
                  MM/DD/YYYY

                
	
                  FIRST_LEGAL_DATE

                	
                  Notice
                    of 1st legal filed by an Attorney in a Foreclosure Action

                	 	
                  MM/DD/YYYY

                
	
                  FRCLSR_SALE_EXPECTED_DATE

                	
                  The
                    date by which a foreclosure sale is expected to occur.

                	 	
                  MM/DD/YYYY

                
	
                  FRCLSR_SALE_DATE

                	
                  The
                    actual date of the foreclosure sale.

                	 	
                  MM/DD/YYYY

                
	
                  FRCLSR_SALE_AMT

                	
                  The
                    amount a property sold for at the foreclosure sale.

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                
	
                  EVICTION_START_DATE

                	
                  The
                    date the servicer initiates eviction of the borrower.

                	 	
                  MM/DD/YYYY

                
	
                  EVICTION_COMPLETED_DATE

                	
                  The
                    date the court revokes legal possession of the property from
                    the
                    borrower.

                	 	
                  MM/DD/YYYY

                
	
                  LIST_PRICE

                	
                  The
                    price at which an REO property is marketed.

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                
	
                  LIST_DATE

                	
                  The
                    date an REO property is listed at a particular price.

                	 	
                  MM/DD/YYYY

                

        

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        
          	
                  OFFER_AMT

                	
                  The
                    dollar value of an offer for an REO property.

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                
	
                  OFFER_DATE_TIME

                	
                  The
                    date an offer is received by DA Admin or by the Servicer.

                	 	
                  MM/DD/YYYY

                
	
                  REO_CLOSING_DATE

                	
                  The
                    date the REO sale of the property is scheduled to close.

                	 	
                  MM/DD/YYYY

                
	
                  REO_ACTUAL_CLOSING_DATE

                	
                  Actual
                    Date Of REO Sale

                	 	
                  MM/DD/YYYY

                
	
                  OCCUPANT_CODE

                	
                  Classification
                    of how the property is occupied.

                	 	
                   

                
	
                  PROP_CONDITION_CODE

                	
                  A
                    code that indicates the condition of the property.

                	 	
                   

                
	
                  PROP_INSPECTION_DATE

                	
                  The
                    date a property inspection is performed.

                	 	
                  MM/DD/YYYY

                
	
                  APPRAISAL_DATE

                	
                  The
                    date the appraisal was done.

                	 	
                  MM/DD/YYYY

                
	
                  CURR_PROP_VAL

                	
                   The
                    current "as is" value of the property based on brokers price
                    opinion or
                    appraisal.

                	
                  2

                	
                   

                
	
                  REPAIRED_PROP_VAL

                	
                  The
                    amount the property would be worth if repairs are completed pursuant
                    to a
                    broker's price opinion or appraisal.

                	
                  2

                	
                   

                
	
                  If
                    applicable:

                	
                   

                	 	
                   

                
	
                  DELINQ_STATUS_CODE

                	
                  FNMA
                    Code Describing Status of Loan

                	 	 
	
                  DELINQ_REASON_CODE

                	
                  The
                    circumstances which caused a borrower to stop paying on a loan.
                    Code
                    indicates the reason why the loan is in default for this
                    cycle.

                	 	 
	
                  MI_CLAIM_FILED_DATE

                	
                  Date
                    Mortgage Insurance Claim Was Filed With Mortgage Insurance
                    Company.

                	 	
                  MM/DD/YYYY

                
	
                  MI_CLAIM_AMT

                	
                  Amount
                    of Mortgage Insurance Claim Filed

                	 	
                  No
                    commas(,) or dollar signs ($)

                
	
                  MI_CLAIM_PAID_DATE

                	
                  Date
                    Mortgage Insurance Company Disbursed Claim Payment

                	 	
                  MM/DD/YYYY

                
	
                  MI_CLAIM_AMT_PAID

                	
                  Amount
                    Mortgage Insurance Company Paid On Claim

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                
	
                  POOL_CLAIM_FILED_DATE

                	
                  Date
                    Claim Was Filed With Pool Insurance Company

                	 	
                  MM/DD/YYYY

                
	
                  POOL_CLAIM_AMT

                	
                  Amount
                    of Claim Filed With Pool Insurance Company

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                
	
                  POOL_CLAIM_PAID_DATE

                	
                  Date
                    Claim Was Settled and The Check Was Issued By The Pool
                    Insurer

                	 	
                  MM/DD/YYYY

                
	
                  POOL_CLAIM_AMT_PAID

                	
                  Amount
                    Paid On Claim By Pool Insurance Company

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                
	
                  FHA_PART_A_CLAIM_FILED_DATE

                	
                   Date
                    FHA Part A Claim Was Filed With HUD

                	 	
                  MM/DD/YYYY

                
	
                  FHA_PART_A_CLAIM_AMT

                	
                   Amount
                    of FHA Part A Claim Filed

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                
	
                  FHA_PART_A_CLAIM_PAID_DATE

                	
                   Date
                    HUD Disbursed Part A Claim Payment

                	 	
                  MM/DD/YYYY

                
	
                  FHA_PART_A_CLAIM_PAID_AMT

                	
                   Amount
                    HUD Paid on Part A Claim

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                
	
                  FHA_PART_B_CLAIM_FILED_DATE

                	
                    Date
                    FHA Part B Claim Was Filed With HUD

                	 	
                  MM/DD/YYYY

                
	
                  FHA_PART_B_CLAIM_AMT

                	
                    Amount
                    of FHA Part B Claim Filed

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                
	
                  FHA_PART_B_CLAIM_PAID_DATE

                	
                     Date
                    HUD Disbursed Part B Claim Payment

                	 	
                  MM/DD/YYYY

                
	
                  FHA_PART_B_CLAIM_PAID_AMT

                	
                   Amount
                    HUD Paid on Part B Claim

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                
	
                  VA_CLAIM_FILED_DATE

                	
                   Date
                    VA Claim Was Filed With the Veterans Admin

                	 	
                  MM/DD/YYYY

                
	
                  VA_CLAIM_PAID_DATE

                	
                   Date
                    Veterans Admin. Disbursed VA Claim Payment

                	 	
                  MM/DD/YYYY

                
	
                  VA_CLAIM_PAID_AMT

                	
                   Amount
                    Veterans Admin. Paid on VA Claim

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                

        

      

      *The column/header names in bold
        are the
        minimum fields Wells Fargo must receive from every
        Servicer

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

    

    
      
        
          	
                  MOTION_FOR_RELIEF_DATE

                	
                  The
                    date the Motion for Relief was filed

                	
                  10

                	
                  MM/DD/YYYY

                
	
                  FRCLSR_BID_AMT

                	
                  The
                    foreclosure sale bid amount

                	
                  11

                	
                  No
                    commas(,) or dollar signs ($)

                
	
                  FRCLSR_SALE_TYPE

                	
                  The
                    foreclosure sales results: REO, Third Party, Conveyance to
                    HUD/VA

                	
                   

                	
                   

                
	
                  REO_PROCEEDS

                	
                  The
                    net proceeds from the sale of the REO property. 

                	
                   

                	
                  No
                    commas(,) or dollar signs ($)

                
	
                  BPO_DATE

                	
                  The
                    date the BPO was done.

                	
                   

                	
                   

                
	
                  CURRENT_FICO

                	
                  The
                    current FICO score

                	
                   

                	
                   

                
	
                  HAZARD_CLAIM_FILED_DATE

                	
                  The
                    date the Hazard Claim was filed with the Hazard Insurance
                    Company.

                	
                  10

                	
                  MM/DD/YYYY

                
	
                  HAZARD_CLAIM_AMT

                	
                  The
                    amount of the Hazard Insurance Claim filed.

                	
                  11

                	
                  No
                    commas(,) or dollar signs ($)

                
	
                  HAZARD_CLAIM_PAID_DATE

                	
                  The
                    date the Hazard Insurance Company disbursed the claim
                    payment.

                	
                  10

                	
                  MM/DD/YYYY

                
	
                  HAZARD_CLAIM_PAID_AMT

                	
                  The
                    amount the Hazard Insurance Company paid on the claim.

                	
                  11

                	
                  No
                    commas(,) or dollar signs ($)

                
	
                  ACTION_CODE

                	
                  Indicates
                    loan status

                	 	
                  Number

                
	
                  NOD_DATE

                	
                   

                	
                   

                	
                  MM/DD/YYYY

                
	
                  NOI_DATE

                	
                   

                	
                   

                	
                  MM/DD/YYYY

                
	
                  ACTUAL_PAYMENT_PLAN_START_DATE

                	
                   

                	
                   

                	
                  MM/DD/YYYY

                
	
                  ACTUAL_PAYMENT_
                    PLAN_END_DATE

                	
                   

                	
                   

                	
                   

                
	
                  ACTUAL_REO_START_DATE

                	
                   

                	
                   

                	
                  MM/DD/YYYY

                
	
                  REO_SALES_PRICE

                	
                   

                	
                   

                	
                  Number

                
	
                  REALIZED_LOSS/GAIN

                	
                  As
                    defined in the Servicing Agreement

                	
                   

                	
                  Number

                

        

      

    

     

    Exhibit
      2: Standard
      File Codes - Delinquency Reporting

     

    The
      Loss
      Mit Type
      field
      should show the approved Loss Mitigation Code as follows: 

     

    
      	
            	·	
              ASUM- Approved
                Assumption

            

    

     

    
      	
            	·	
              BAP-  Borrower
                Assistance Program

            

    

     

    
      	
            	·	
              CO- 
                Charge Off

            

    

     

    
      	
            	·	
              DIL-
                Deed-in-Lieu

            

    

     

    
      	
            	·	
              FFA- 
                Formal Forbearance Agreement

            

    

     

    
      	
            	·	
              MOD- 
                Loan Modification

            

    

    
      
         

        
          	
                	·	
                  PRE-
                    Pre-Sale

                

        

         

      

    

    
      
        
          	
                	·	
                  SS-
                    Short Sale

                

        

         

        
          	
                	·	
                  MISC-  Anything
                    else approved by the PMI or Pool
                    Insurer

                

        

      

    

     

    NOTE:
      Wells
      Fargo Bank will accept alternative Loss Mitigation Types to those above,
      provided that they are consistent with industry standards. If Loss Mitigation
      Types other than those above are used, the Servicer must supply Wells Fargo
      Bank
      with a description of each of the Loss Mitigation Types prior to sending the
      file.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    The
      Occupant
      Code
      field
      should show the current status of the property code as follows:

     

    
      	 	
              ·

            	
              Mortgagor

            

    

     

    
      	 	
              ·

            	
              Tenant

            

    

     

    
      	 	
              ·

            	
              Unknown
                

            

    

     

    
      	 	
              ·

            	
              Vacant

            

    

     

    The
      Property
      Condition
      field
      should show the last reported condition of the property as follows:

     

    
      	
            	·	
              Damaged

            

    

     

    
      	
            	·	
              Excellent

            

    

     

    
      	
            	·	
              Fair

            

    

     

    
      	
            	·	
              Gone

            

    

     

    
      	
            	·	
              Good

            

    

     

    
      	
            	·	
              Poor

            

    

     

    
      	
            	·	
              Special
                Hazard

            

    

     

    
      	
            	·	
              Unknown

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
Exhibit
      2: Standard
      File Codes - Delinquency Reporting, Continued

     

    The
      FNMA
      Delinquent Reason Code
      field
      should show the Reason for Delinquency as follows: 

    

      
        	
                Delinquency
                  Code

              	 	
                Delinquency
                  Description

              
	
                001

              	 	
                FNMA-Death
                  of principal mortgagor

              
	
                002

              	 	
                FNMA-Illness
                  of principal mortgagor

              
	
                003

              	 	
                FNMA-Illness
                  of mortgagor’s family member

              
	
                004

              	 	
                FNMA-Death
                  of mortgagor’s family member

              
	
                005

              	 	
                FNMA-Marital
                  difficulties

              
	
                006

              	 	
                FNMA-Curtailment
                  of income

              
	
                007

              	 	
                FNMA-Excessive
                  Obligation

              
	
                008

              	 	
                FNMA-Abandonment
                  of property

              
	
                009

              	 	
                FNMA-Distant
                  employee transfer

              
	
                011

              	 	
                FNMA-Property
                  problem

              
	
                012

              	 	
                FNMA-Inability
                  to sell property

              
	
                013

              	 	
                FNMA-Inability
                  to rent property

              
	
                014

              	 	
                FNMA-Military
                  Service

              
	
                015

              	 	
                FNMA-Other

              
	
                016

              	 	
                FNMA-Unemployment

              
	
                017

              	 	
                FNMA-Business
                  failure

              
	
                019

              	 	
                FNMA-Casualty
                  loss

              
	
                022

              	 	
                FNMA-Energy
                  environment costs

              
	
                023

              	 	
                FNMA-Servicing
                  problems

              
	
                026

              	 	
                FNMA-Payment
                  adjustment

              
	
                027

              	 	
                FNMA-Payment
                  dispute

              
	
                029

              	 	
                FNMA-Transfer
                  of ownership pending

              
	
                030

              	 	
                FNMA-Fraud

              
	
                031

              	 	
                FNMA-Unable
                  to contact borrower

              
	
                INC

              	 	
                FNMA-Incarceration

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      
 

    Exhibit
      2: Standard
      File Codes - Delinquency Reporting, Continued

     

    The
      FNMA
      Delinquent Status Code
      field
      should show the Status of Default as follows: 

    

      
        	
                Status
                  Code

              	 	
                Status
                  Description

              
	
                09

              	 	
                Forbearance

              
	
                17

              	 	
                Pre-foreclosure
                  Sale Closing Plan Accepted

              
	
                24

              	 	
                Government
                  Seizure

              
	
                26

              	 	
                Refinance

              
	
                27

              	 	
                Assumption

              
	
                28

              	 	
                Modification

              
	
                29

              	 	
                Charge-Off

              
	
                30

              	 	
                Third
                  Party Sale

              
	
                31

              	 	
                Probate

              
	
                32

              	 	
                Military
                  Indulgence

              
	
                43

              	 	
                Foreclosure
                  Started

              
	
                44

              	 	
                Deed-in-Lieu
                  Started

              
	
                49

              	 	
                Assignment
                  Completed

              
	
                61

              	 	
                Second
                  Lien Considerations

              
	
                62

              	 	
                Veteran’s
                  Affairs-No Bid

              
	
                63

              	 	
                Veteran’s
                  Affairs-Refund

              
	
                64

              	 	
                Veteran’s
                  Affairs-Buydown

              
	
                65

              	 	
                Chapter
                  7 Bankruptcy

              
	
                66

              	 	
                Chapter
                  11 Bankruptcy

              
	
                67

              	 	
                Chapter
                  13 Bankruptcy

              

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Exhibit
      3A: Calculation
      of Realized Loss/Gain Form 332

    

    Prepared
      by: __________________   Date:
      _______________

    Phone:
      ______________________ Email Address:_____________________

    

    

    
      	 	 	 	 	 
	
              Servicer
                Loan No.

            	 	
              Servicer
                Name

            	 	
              Servicer
                Address 

               

            

    

     

    WELLS
      FARGO BANK, N.A. Loan No._____________________________

    

    Borrower's
      Name: _________________________________________________________

    Property
      Address: _________________________________________________________

    

    Liquidation
      Type: REO Sale  
      3rd
      Party Sale  Short
      Sale Charge
      Off 

    

    Was
      this loan granted a Bankruptcy deficiency or cramdown  Yes      No

     

    If
“Yes”,
      provide deficiency or cramdown amount
      _______________________________

    

      Liquidation
        and Acquisition Expenses:

      
        	
                (1)

              	 	
                Actual
                  Unpaid Principal Balance of Mortgage Loan

              	 	
                $
                  ______________

              	 	
                (1)

              
	
                (2)

              	 	
                Interest
                  accrued at Net Rate

              	 	
                ________________

              	 	
                (2)

              
	
                (3)

              	 	
                Accrued
                  Servicing Fees

              	 	
                ________________

              	 	
                (3)

              
	
                (4)

              	 	
                Attorney's
                  Fees

              	 	
                ________________

              	 	
                (4)

              
	
                (5)

              	 	
                Taxes
                  (see page 2)

              	 	
                ________________

              	 	
                (5)

              
	
                (6)

              	 	
                Property
                  Maintenance

              	 	
                ________________

              	 	
                (6)

              
	
                (7)

              	 	
                MI/Hazard
                  Insurance Premiums (see page 2)

              	 	
                ________________

              	 	
                (7)

              
	
                (8)

              	 	
                Utility
                  Expenses

              	 	
                ________________

              	 	
                (8)

              
	
                (9)

              	 	
                Appraisal/BPO

              	 	
                ________________

              	 	
                (9)

              
	
                (10)

              	 	
                Property
                  Inspections

              	 	
                ________________

              	 	
                (10)

              
	
                (11)

              	 	
                FC
                  Costs/Other Legal Expenses

              	 	
                ________________

              	 	
                (11)

              
	
                (12)

              	 	
                Other
                  (itemize)

              	 	
                ________________

              	 	
                (12)

              
	 	 	
                Cash
                  for Keys__________________________

              	 	
                ________________

              	 	
                (12)

              
	 	 	
                HOA/Condo
                  Fees_______________________

              	 	
                ________________

              	 	
                (12)

              
	 	 	
                ______________________________________

              	 	
                ________________

              	 	
                (12)

              
	 	 	 	 	 	 	 
	 	 	
                Total
                  Expenses

              	 	
                $
                  _______________

              	 	
                (13)

              
	
                Credits:

              	 	 	 	 	 	 
	
                (14)

              	 	
                Escrow
                  Balance

              	 	
                $
                  _______________

              	 	
                (14)

              
	
                (15)

              	 	
                HIP
                  Refund

              	 	
                ________________

              	 	
                (15)

              
	
                (16)

              	 	
                Rental
                  Receipts

              	 	
                ________________

              	 	
                (16)

              
	
                (17)

              	 	
                Hazard
                  Loss Proceeds

              	 	
                ________________

              	 	
                (17)

              
	
                (18)

              	 	
                Primary
                  Mortgage Insurance / Gov’t Insurance

              	 	
                ________________

              	 	(18a)
	
                HUD
                  Part A

              	 	 	 	 
	 	 	 	 	
                ________________
                  

              	 	
                (18b)

              
	
                HUD
                  Part B

              	 	 	 	 	 	 
	
                (19)

              	 	
                Pool
                  Insurance Proceeds

              	 	
                ________________

              	 	
                (19)

              
	
                (20)

              	 	
                Proceeds
                  from Sale of Acquired Property

              	 	
                ________________

              	 	
                (20)

              
	
                (21)

              	 	
                Other
                  (itemize)

              	 	
                ________________

              	 	
                (21)

              
	 	 	
                _________________________________________

              	 	
                ________________

              	 	
                (21)

              
	 	 	 	 	 	 	 
	 	 	
                Total
                  Credits

              	 	
                $________________

              	 	
                (22)

              
	Total
                Realized Loss (or Amount of Gain)	 	
                $________________

              	 	
                (23)

              

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Escrow
      Disbursement Detail

    

      
        	
                Type

                (Tax
                  /Ins.)

              	
                Date
                  Paid

              	
                Period
                  of 

                Coverage

              	
                Total
                  Paid

              	
                Base
                  

                Amount

              	
                Penalties

              	
                Interest

              
	
                 

                 

              	 	 	 	 	 	 
	
                 

                 

              	 	 	 	 	 	 
	
                 

                 

              	 	 	 	 	 	 
	
                 

                 

              	 	 	 	 	 	 
	
                 

                 

              	 	 	 	 	 	 
	
                 

                 

              	 	 	 	 	 	 
	
                 

                 

              	 	 	 	 	 	 
	
                 

                 

              	 	 	 	 	 	 

      

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    SCHEDULE
      5

    

    STANDARD
      FILE LAYOUT- MASTER SERVICING 

    
      

        
          	 	
                  Standard
                    Loan Level File Layout - Master Servicing

                	
                   

                	
                   

                	
                   

                
	 	 	
                   

                	
                   

                	
                   

                
	
                  Exhibit
                    1: 
                    Layout

                	 	
                   

                	
                   

                	
                   

                
	
                  Column
                    Name

                	
                  Description

                	
                  Decimal

                	
                  Format
                    Comment

                	
                  Max
                    Size

                
	
                  Each
                    file requires the following fields:

                	
                   

                	
                   

                	
                   

                
	
                  SER_INVESTOR_NBR

                	
                  A
                    value assigned by the Servicer to define a group of loans.

                	
                   

                	
                  Text
                    up to 20 digits

                	
                  20

                
	
                  LOAN_NBR

                	
                  A
                    unique identifier assigned to each loan by the investor.

                	
                   

                	
                  Text
                    up to 10 digits

                	
                  10

                
	
                  SERVICER_LOAN_NBR

                	
                  A
                    unique number assigned to a loan by the Servicer. This may be
                    different
                    than the LOAN_NBR.

                	
                   

                	
                  Text
                    up to 10 digits

                	
                  10

                
	
                  SCHED_PAY_AMT

                	
                  Scheduled
                    monthly principal and scheduled interest payment that a borrower
                    is
                    expected to pay, P&I constant.

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                	
                  11

                
	
                  NOTE_INT_RATE

                	
                  The
                    loan interest rate as reported by the Servicer.

                	
                  4

                	
                  Max
                    length of 6

                	
                  6

                
	
                  NET_INT_RATE

                	
                  The
                    loan gross interest rate less the service fee rate as reported
                    by the
                    Servicer.

                	
                  4

                	
                  Max
                    length of 6

                	
                  6

                
	
                  SERV_FEE_RATE

                	
                  The
                    servicer's fee rate for a loan as reported by the Servicer.
                    

                	
                  4

                	
                  Max
                    length of 6

                	
                  6

                
	
                  SERV_FEE_AMT

                	
                  The
                    servicer's fee amount for a loan as reported by the Servicer.
                    

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                	
                  11

                
	
                  NEW_PAY_AMT

                	
                  The
                    new loan payment amount as reported by the Servicer. 

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                	
                  11

                
	
                  NEW_LOAN_RATE

                	
                  The
                    new loan rate as reported by the Servicer. 

                	
                  4

                	
                  Max
                    length of 6

                	
                  6

                
	
                  ARM_INDEX_RATE

                	
                  The
                    index the Servicer is using to calculate a forecasted
                    rate.

                	
                  4

                	
                  Max
                    length of 6

                	
                  6

                
	
                  ACTL_BEG_PRIN_BAL

                	
                  The
                    borrower's actual principal balance at the beginning of the processing
                    cycle.

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                	
                  11

                
	
                  ACTL_END_PRIN_BAL

                	
                  The
                    borrower's actual principal balance at the end of the processing
                    cycle.

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                	
                  11

                

        

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        
          	
                  BORR_NEXT_PAY_DUE_DATE

                	
                  The
                    date at the end of processing cycle that the borrower's next
                    payment is
                    due to the Servicer, as reported by Servicer.

                	
                   

                	
                  MM/DD/YYYY

                	
                  10

                
	
                  SERV_CURT_AMT_1

                	
                  The
                    first curtailment amount to be applied.

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                	
                  11

                
	
                  SERV_CURT_DATE_1

                	
                  The
                    curtailment date associated with the first curtailment amount.
                    

                	
                   

                	
                  MM/DD/YYYY

                	
                  10

                
	
                  CURT_ADJ_
                    AMT_1

                	
                  The
                    curtailment interest on the first curtailment amount, if
                    applicable.

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                	
                  11

                
	
                  SERV_CURT_AMT_2

                	
                  The
                    second curtailment amount to be applied.

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                	
                  11

                
	
                  SERV_CURT_DATE_2

                	
                  The
                    curtailment date associated with the second curtailment
                    amount.

                	
                   

                	
                  MM/DD/YYYY

                	
                  10

                
	
                  CURT_ADJ_
                    AMT_2

                	
                  The
                    curtailment interest on the second curtailment amount, if
                    applicable.

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                	
                  11

                

        

      

    

    

      
        	
                Standard
                  File Layout - Master Servicing 

              	 	 	 
	
                Column
                  Name

              	
                Description

              	
                Decimal

              	
                Format
                  Comment

              	
                Max
                  Size

              
	
                SER_INVESTOR_NBR

              	
                A
                  value assigned by the Servicer to define a group of loans.

              	
                 

              	
                Text
                  up to 10 digits

              	
                20

              
	
                LOAN_NBR

              	
                A
                  unique identifier assigned to each loan by the investor.

              	
                 

              	
                Text
                  up to 10 digits

              	
                10

              
	
                SERVICER_LOAN_NBR

              	
                A
                  unique number assigned to a loan by the Servicer. This may be different
                  than the LOAN_NBR.

              	
                 

              	
                Text
                  up to 10 digits

              	
                10

              
	
                BORROWER_NAME

              	
                The
                  borrower name as received in the file. It is not separated by first
                  and
                  last name.

              	
                 

              	
                Maximum
                  length of 30 (Last, First)

              	
                30

              
	
                SCHED_PAY_AMT

              	
                Scheduled
                  monthly principal and scheduled interest payment that a borrower
                  is
                  expected to pay, P&I constant.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                NOTE_INT_RATE

              	
                The
                  loan interest rate as reported by the Servicer.

              	
                4

              	
                Max
                  length of 6

              	
                6

              
	
                NET_INT_RATE

              	
                The
                  loan gross interest rate less the service fee rate as reported
                  by the
                  Servicer.

              	
                4

              	
                Max
                  length of 6

              	
                6

              
	
                SERV_FEE_RATE

              	
                The
                  servicer's fee rate for a loan as reported by the Servicer.
                  

              	
                4

              	
                Max
                  length of 6

              	
                6

              
	
                SERV_FEE_AMT

              	
                The
                  servicer's fee amount for a loan as reported by the Servicer.
                  

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                NEW_PAY_AMT

              	
                The
                  new loan payment amount as reported by the Servicer. 

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                NEW_LOAN_RATE

              	
                The
                  new loan rate as reported by the Servicer. 

              	
                4

              	
                Max
                  length of 6

              	
                6

              
	
                ARM_INDEX_RATE

              	
                The
                  index the Servicer is using to calculate a forecasted
                  rate.

              	
                4

              	
                Max
                  length of 6

              	
                6

              
	
                ACTL_BEG_PRIN_BAL

              	
                The
                  borrower's actual principal balance at the beginning of the processing
                  cycle.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                ACTL_END_PRIN_BAL

              	
                The
                  borrower's actual principal balance at the end of the processing
                  cycle.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	
                BORR_NEXT_PAY_DUE_DATE

              	
                The
                  date at the end of processing cycle that the borrower's next payment
                  is
                  due to the Servicer, as reported by Servicer.

              	
                 

              	
                MM/DD/YYYY

              	
                10

              
	
                SERV_CURT_AMT_1

              	
                The
                  first curtailment amount to be applied.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SERV_CURT_DATE_1

              	
                The
                  curtailment date associated with the first curtailment amount.
                  

              	
                 

              	
                MM/DD/YYYY

              	
                10

              
	
                CURT_ADJ_
                  AMT_1

              	
                The
                  curtailment interest on the first curtailment amount, if
                  applicable.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SERV_CURT_AMT_2

              	
                The
                  second curtailment amount to be applied.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SERV_CURT_DATE_2

              	
                The
                  curtailment date associated with the second curtailment
                  amount.

              	
                 

              	
                MM/DD/YYYY

              	
                10

              
	
                CURT_ADJ_
                  AMT_2

              	
                The
                  curtailment interest on the second curtailment amount, if
                  applicable.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SERV_CURT_AMT_3

              	
                The
                  third curtailment amount to be applied.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SERV_CURT_DATE_3

              	
                The
                  curtailment date associated with the third curtailment
                  amount.

              	
                 

              	
                MM/DD/YYYY

              	
                10

              
	
                CURT_ADJ_AMT_3

              	
                The
                  curtailment interest on the third curtailment amount, if
                  applicable.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                PIF_AMT

              	
                The
                  loan "paid in full" amount as reported by the Servicer.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                PIF_DATE

              	
                The
                  paid in full date as reported by the Servicer.

              	
                 

              	
                MM/DD/YYYY

              	
                10

              
	
                 

              	
                 

              	
                 

              	
                Action
                  Code Key: 15=Bankruptcy, 30=Foreclosure, , 60=PIF, 63=Substitution,
                  65=Repurchase,70=REO 

              	
                2

              
	
                ACTION_CODE

              	
                The
                  standard FNMA numeric code used to indicate the default/delinquent
                  status
                  of a particular loan.

              
	
                INT_ADJ_AMT

              	
                The
                  amount of the interest adjustment as reported by the
                  Servicer.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SOLDIER_SAILOR_ADJ_AMT

              	
                The
                  Soldier and Sailor Adjustment amount, if applicable.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                NON_ADV_LOAN_AMT

              	
                The
                  Non Recoverable Loan Amount, if applicable.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                LOAN_LOSS_AMT

              	
                The
                  amount the Servicer is passing as a loss, if applicable.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SCHED_BEG_PRIN_BAL

              	
                The
                  scheduled outstanding principal amount due at the beginning of
                  the cycle
                  date to be passed through to investors.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SCHED_END_PRIN_BAL

              	
                The
                  scheduled principal balance due to investors at the end of a processing
                  cycle.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SCHED_PRIN_AMT

              	
                The
                  scheduled principal amount as reported by the Servicer for the
                  current
                  cycle -- only applicable for Scheduled/Scheduled Loans.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	
                SCHED_NET_INT

              	
                The
                  scheduled gross interest amount less the service fee amount for
                  the
                  current cycle as reported by the Servicer -- only applicable for
                  Scheduled/Scheduled Loans.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                ACTL_PRIN_AMT

              	
                The
                  actual principal amount collected by the Servicer for the current
                  reporting cycle -- only applicable for Actual/Actual
                  Loans.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                ACTL_NET_INT

              	
                The
                  actual gross interest amount less the service fee amount for the
                  current
                  reporting cycle as reported by the Servicer -- only applicable
                  for
                  Actual/Actual Loans.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                PREPAY_PENALTY_
                  AMT

              	
                The
                  penalty amount received when a borrower prepays on his loan as
                  reported by
                  the Servicer. 

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                PREPAY_PENALTY_
                  WAIVED

              	
                The
                  prepayment penalty amount for the loan waived by the
                  servicer.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              
	
                MOD_DATE

              	
                The
                  Effective Payment Date of the Modification for the loan.

              	
                 

              	
                MM/DD/YYYY

              	
                10

              
	
                MOD_TYPE

              	
                The
                  Modification Type.

              	
                 

              	
                Varchar
                  - value can be alpha or numeric

              	
                30

              
	
                DELINQ_P&I_ADVANCE_AMT

              	
                The
                  current outstanding principal and interest advances made by
                  Servicer.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                 

                BREACH_FLAG

              	
                Flag
                  to indicate if the repurchase of a loan is due to a breach of
                  Representations and Warranties

              	 	
                Y=Breach

                N=NO
                  Breach

                Let
                  blank if N/A

              	
                1

              

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    

    
      	
              Exhibit
                2: Monthly
                Summary Report by Single Investor

            

    

     

    
      	
              MONTHLY
                SUMMARY REPORT

            	 	 
	 	 	 
	
              For
                Month Ended: mm/dd/yyyy

            	 	
              Servicer
                Name _________________

            
	
              Prepared
                by: ______________

            	 	
              Investor
                Nbr __________________

            

    

     

    
      	
              Section
                1. Remittances and Ending Balances - Required Data
                

            	
               

            

    

     

    
      	
            	 	
            	 	
              Total
                Monthly

            	 	
              Total
                Ending Unpaid

            	 	
              Total
                Monthly 

            	 
	
              
                Beginning
Loan
                Count

            	 	
              
                Ending
                  
Loan Count

            	 	
              Remittance
                Amount

            	 	
              Principal
                Balance

            	 	
              Principal

              Balance

            	 
	
              0

            	 	 	
              0

            	 	
              $

            	
              0.00

            	 	
              $

            	
              0.00

            	 	
              $

            	
              0.00

            	 

    

     

    
      
        	
                Principal
                  Calculation

              	 	 	 	 	 	 	 
	
                1.
                  Monthly Principal Due

              	 	 	 	 	 	
                +

              	 	
                $

              	
                0.00

              	 
	
                2.
                  Current Curtailments

              	 	 	 	 	 	
                +

              	 	
                $

              	
                0.00

              	 
	
                3.
                  Liquidations

              	 	 	 	 	 	
                +

              	 	
                $

              	
                0.00

              	 
	
                4.
                  Other (attach explanation)

              	 	 	 	 	 	
                +

              	 	
                $

              	
                0.00

              	 
	
                5.
                  Principal Due

              	 	 	 	 	 	 	 	
                $

              	
                0.00

              	 
	
                6.
                  Interest (reported
                  "gross")

              	 	 	 	 	 	
                +

              	 	
                $

              	
                0.00

              	 
	
                7.
                  Interest Adjustments on Curtailments

              	 	 	 	 	 	
                +

              	 	
                $

              	
                0.00

              	 
	
                8.
                  Servicing Fees 

              	 	 	 	 	 	
                -

              	 	
                $

              	
                0.00

              	 
	
                9.
                  Other Interest (attach explanation)

              	 	 	 	 	 	
                +

              	 	
                $

              	
                0.00

              	 
	
                10.
                  Interest Due

              	 	 	
                (need
                  to subtract ser fee)

              	 	
                $

              	
                0.00

              	 
	
                Remittance
                  Calculation

              	 	 	 	 	 	 	 	 	 	 
	
                11.
                  Total Principal and Interest Due (lines 5+10)

              	 	 	 	 	 	
                +

              	 	
                $

              	
                0.00

              	 
	
                12.
                  Reimbursement of Non-Recoverable Advances

              	 	 	 	 	 	
                -

              	 	
                $

              	
                0.00

              	 
	
                13.
                  Total Realized gains 

              	 	 	 	 	 	
                +

              	 	
                $

              	
                0.00

              	 
	
                14.
                  Total Realized Losses

              	 	 	 	 	 	
                -

              	 	
                $

              	
                0.00

              	 
	
                15.
                  Total Prepayment Penalties

              	 	 	 	 	 	
                +

              	 	
                $

              	
                0.00

              	 
	
                16.
                  Total Non-Supported Compensating Interest

              	 	 	 	 	 	
                -

              	 	
                $

              	
                0.00

              	 
	
                17.
                  Other (attach explanation)

              	 	 	 	 	 	 	 	
                $

              	
                0.00

              	 
	
                18.
                  Net Funds Due on or before Remittance Date

              	 	 	 	 	 	 	 	
                $

              	
                $0.00

              	 

      
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      
        	
                Section
                  2. Delinquency Report - Optional Data for Loan Accounting
                  

              

      

       

      
        	
                Installments
                  Delinquent

              	 

      

       

      
        	
                
                  Total
                    No.
of

              	 	
                
                  Total
                    No.
of 

              	 	
                30-

              	 	
                60-

              	 	
                90
                  or more

              	 	
                
                  In
Foreclosure

              	 	
                
                  Real
                    Estate
Owned

              	 	
                
                  Total
                    Dollar
Amount of

              	 
	
                Loans

              	 	
                Delinquencies

              	 	
                Days

              	 	
                Days

              	 	
                Days

              	 	
                (Optional)

              	 	
                (Optional)

              	 	
                Delinquencies

              	 
	
                0

              	 	 	
                0

              	 	 	
                0

              	 	 	
                0

              	 	 	
                0

              	 	 	
                0

              	 	 	
                0

              	 	
                $

              	
                0.00

              	 

      

    

     

    
      
        	
                Section
                  3. REG AB Summary Reporting - REPORT ALL APPLICABLE
                  FIELDS

              

      

       

      
        	
                REG
                  AB FIELDS

              	 	
                LOAN
                  COUNT

              	 	
                BALANCE

              	 
	
                PREPAYMENT
                  PENALTY AMT

              	 	 	
                0

              	 	
                $

              	
                0.00

              	 
	
                PREPAYMENT
                  PENALTY AMT WAIVED

              	 	 	
                0

              	 	
                $

              	
                0.00

              	 
	
                DELINQUENCY
                  P&I AMOUNT

              	 	 	
                0

              	 	
                $

              	
                0.00

              	 

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

         

      

    

    SCHEDULE
      6

    

    DATA
      REQUIREMENTS OF SERVICING ADVANCES INCURRED PRIOR TO CUT-OFF
      DATE

    

    
      	
              [LOAN
                NUMBER]

            	
              [PRE-CUT-OFF
                DATE ADVANCE AMOUNT]

            

    

     

    [PROVIDED
      UPON REQUEST]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00125-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00125-of-00352.parquet"}]]