Document:

Filed by Bowne Pure Compliance

 

EXHIBIT 10.22

COMMERCIAL SECURITY AGREEMENT

BUSINESS LOAN AGREEMENT

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Principal
	 	Loan Date
	 	Maturity
	 	Loan No.
	 	Call / Coll
	 	 	 	Officer	 	 
	$300,000.00
	 	03-27-2007
	 	07-31-2008
	 	50096995
	 	520
	 	Account
	 	080
	 	Initials

References in the shaded area are for Lender’s use only and do not limit the applicability of this document to any
particular loan or item. Any item above containing “***” has been omitted due to text length limitations.

	 	 	 	 	 	 	 
	Grantor:

	 	Broadview Institute, Inc. (TIN:
	 	Lender:
	 	American Bank of St. Paul
	 

	 	41-0641789)
	 	 	 	Midway Branch
	 

	 	4455 West 77th Street
	 	 	 	1578 University Avenue West
	 

	 	Minneapolis, MN 55535
	 	 	 	St. Paul, MN 55104
	 

	 	 	 	 	 	(651) 628-2661

THIS COMMERCIAL SECURITY AGREEMENT dated March 27, 2007, is made and executed between Broadview
Institute, Inc. (“Grantor”) and American Bank of St. Paul (“Lender”).

GRANT OF SECURITY INTEREST. For valuable consideration, Grantor grants to Lender a security
interest in the Collateral to secure the Indebtedness and agrees that Lender shall have the rights
stated in this Agreement with respect to the Collateral, in addition to all other rights which
Lender may have by law.

COLLATERAL DESCRIPTION. The word “Collateral” as used in this Agreement means the following
described property, whether now owned or hereafter acquired, whether now existing or hereafter
arising, and wherever located, in which Grantor is giving to Lender a security interest for the
payment of the Indebtedness and performance of all other obligations under the Note and this
Agreement:

All Inventory, Chattel Paper, Accounts, Equipment, General Intangibles and Fixtures

In addition, the word “Collateral” also includes all the following, whether now owned or hereafter
acquired, whether now existing or hereafter arising, and wherever located:

(A) All accessions, attachments, accessories, tools, parts, supplies, replacements of and
additions to any of the collateral described herein, whether added now or later.

(B) All products and produce of any of the property described in this Collateral section.

(C) All accounts, general intangibles, instruments, rents, monies, payments, and all other
rights, arising out of a sale, lease, consignment or other disposition of any of the property
described in this Collateral section.

(D) All proceeds (including insurance proceeds) from the sale, destruction, loss, or other
disposition of any of the property described in this Collateral section, and sums due from a
third party who has damaged or destroyed the Collateral or from that party’s Insurer, whether
due to judgment, settlement or other process.

(E) All records and data relating to any of the property described in this Collateral section,
whether in the form of a writing, photograph, microfilm, microfiche, or electronic media,
together with all of Grantor’s right, title, and interest in and to all computer software
required to utilize, create, maintain, and process any such records or data on electronic media.

 

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RIGHT OF SETOFF. To the extent permitted by applicable law, Lender reserves a right of setoff in
all Grantor’s accounts with Lender (whether checking, savings, or some other account). This
includes all accounts Grantor holds jointly with someone else and all accounts Grantor may open in
the future. However, this does not include any IRA or Keogh accounts, or any trust accounts for
which setoff would be prohibited by law. Grantor authorizes Lender, to the extent permitted by
applicable law, to charge or setoff all sums owing on the Indebtedness against any and all such
accounts.

GRANTOR’S REPRESENTATIONS AND WARRANTIES WITH RESPECT TO THE COLLATERAL. With respect to the
Collateral, Grantor represents and promises to Lender that:

Perfection of Security Interest. Grantor agrees to take whatever actions are requested by
Lender to perfect and continue Lender’s security interest in the Collateral. Upon request of
Lender, Grantor will deliver to Lender any and all of the documents evidencing or constituting
the Collateral, and Grantor will note Lender’s interest upon any and all chattel paper and
instruments if not delivered to Lender for possession by Lender. This is a continuing Security
Agreement and will continue in effect even though all or any part of the Indebtedness is paid in
full and even though for a period of time Grantor may not be Indebted to Lender.

Notices to Lender. Grantor will promptly notify Lender in writing at Lender’s address shown
above (or such other addresses as Lender may designate from time to time) prior to any (1)
change in Grantor’s name; (2) change in Grantor’s assumed business name(s); (3) change in the
management of the Corporation Grantor; (4) change in the authorized signer(s); (5) change in
Grantor’s principal office address; (6) change in Grantor’s state of organization; (7)
conversion of Grantor to a new or different type of business entity; or (8) change in any other
aspect of Grantor that directly or indirectly relates to any agreements between Grantor and
Lender. No change in Grantor’s name or state of organization will take affect until after
Lender has received notice.

No Violation. The execution and delivery of this Agreement will not violate any law or
agreement governing Grantor or to which Grantor is a party, and its certificate or articles of
incorporation and bylaws do not prohibit any term or condition of this Agreement.

Enforceability of Collateral. To the extent the Collateral consists of accounts, chattel paper,
or general intangibles, as defined by the Uniform Commercial Code, the Collateral is enforceable
in accordance with its terms, is genuine, and fully complies with all applicable laws and
regulations concerning form, content and manner of preparation and execution, and all persons
appearing to be obligated on the Collateral have authority and capacity to contract and are in
fact obligated as they appear to be on the Collateral. At the time any account becomes subject
to a security interest in favor of Lender, the account shall be a good and valid account
representing an undisputed, bona fide indebtedness incurred by the account debtor, for
merchandise held subject to delivery instructions or previously shipped or delivered pursuant to
a contract of sale, or for services previously performed by Grantor with or for the account
debtor. So long as this Agreement remains in affect, Grantor shall not, without Lenders prior
written consent, compromise, settle, adjust, or extend payment under or with regard to any such
Accounts. There shall be no setoffs or counterclaims against any of the Collateral, and no
agreement shall have been made under which any deductions or
discounts may be claimed concerning the Collateral except those disclosed to Lender in writing.

 

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Location of the Collateral. Except in the ordinary course of Grantor’s business, Grantor agrees
to keep me Collateral (or to the extent the Collateral consists of intangible property such as
accounts or general intangibles, the records concerning the Collateral) at Grantor’s address
shown above or at such other locations as are acceptable to Lender. Upon Lender’s request,
Grantor will deliver to Lender in form satisfactory to Lender a schedule of real properties and
Collateral locations relating to Grantor’s operations, including without limitation the
following; (1) all real property Grantor owns or is purchasing; (2) all real property Grantor is
renting or leasing: (3) all storage facilities Grantor owns, rents, leases, or uses; and (4) all
other properties where Collateral is or may be located.

Removal of the Collateral. Except in the ordinary course of Grantor’s business, including the
sales of inventory, Grantor shall not remove the Collateral from its existing location without
Lender’s prior written consent. To the extent that the Collateral consists of vehicles, or
other titled property, Grantor shall not take or permit any action which would require
application for certificates of title for the vehicles outside the State of Minnesota, without
Lender’s prior written consent. Grantor shall, whenever requested, advise Lender of the exact
location of the Collateral.

Transactions Involving Collateral. Except for inventory sold or accounts collected in the
ordinary course of Grantor’s business, or as otherwise provided for in this Agreement, Grantor
shall not sell, offer to sell, or otherwise transfer or dispose of the Collateral. While
Grantor is not in default under this Agreement, Grantor may sell inventory, but only in the
ordinary course of its business and only to buyers who qualify as a buyer in the ordinary course
of business. A sale in the ordinary course of Grantor’s business does not include a transfer in
partial or total satisfaction of a debt or any bulk sale. Grantor shall not pledge, mortgage,
encumber or otherwise permit the Collateral to be subject to any lien, security interest,
encumbrance, or charge, other than the security interest provided for in this Agreement, without
the prior written consent of Lender. This includes security interests even if junior in right
to the security interests granted under this Agreement. Unless waived by Lender, all proceeds
from any disposition of the Collateral (for whatever reason) shall be held in trust for Lender
and shall not be commingled with any other funds; provided however, this requirement shall not
constitute concern by Lender to any sale or other disposition. Upon receipt, Grantor shall
immediately deliver any such proceeds to Lender.

Title. Grantor represents and warrants to Lender that Grantor holds good and marketable title
to the Collateral, free and clear of all liens and encumbrances except for the lien of this
Agreement. No financing statement covering any of the Collateral is on file in any public
office other than those which reflect the security interest created by this Agreement or to
which Lender has specifically consented. Grantor shall defend Lender’s rights in the Collateral
against the claims and demands of all other persons.

Repairs and Maintenance. Grantor agrees to keep and maintain, and to cause others to keep and
maintain, the Collateral in good order, repair and condition at all times while this Agreement
remains in effect. Grantor further agrees to pay when due all claims for work done on, or
services rendered or material furnished in connection with the Collateral so that no lien or
encumbrance may ever attach to or be filed against the Collateral.

 

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Inspection of Collateral. Lender and Lender’s designated representatives and agents shall have
the right at all reasonable times to examine and inspect the Collateral wherever located.

Taxes, Assessments and Liens. Grantor will pay when due all taxes, assessments and liens upon
the Collateral, its use or operation, upon this Agreement, upon any promissory note or notes
evidencing the Indebtedness, or upon any of the other Related Documents. Grantor may withhold
any such payment or may elect to contest any lien if Grantor is in good faith conducting an
appropriate proceeding to contest the obligation to pay and so long as Lender’s interest in the
Collateral is not jeopardized in Lender’s sole opinion. If the Collateral is subjected to a
lien which is not discharged within fifteen (15) days, Grantor shall deposit with Lender cash, a
sufficient corporate surety bond or other security satisfactory to Lender in an amount adequate
to provide for the discharge of the lien plus any interest, costs, reasonable attorneys’ fees or
other charges that could accrue as a result of foreclosure or sale of the Collateral. In any
contest Grantor shall defend itself and Lender and shall satisfy any final adverse judgment
before enforcement against the Collateral. Grantor shall name Lender as an additional obligee
under any surety bond furnished in the contest proceedings. Grantor further agrees to furnish
Lender with evidence that such taxes, assessments, and governmental and other charges have been
paid in full and in a timely manner. Grantor may withhold any such payment or may elect to
contest any lien if Grantor is in good faith conducting an appropriate proceeding to contest the
obligation to pay and so long as Lender’s interest in the Collateral is not jeopardized.

Compliance with Governmental Requirements. Grantor shall comply promptly with all laws,
ordinances, rules and regulations of all governmental authorities, now or hereafter in effect,
applicable to the ownership, production, disposition, or use of the Collateral, including all
laws or regulations relating to the undue erosion of highly-erodible land or relating to the
conversion of wetlands for the production of an agricultural product or commodity. Grantor may
contest in good faith any such law, ordinance or regulation and withhold compliance during any
proceeding, including appropriate appeals, so long as Lender’s interest in the Collateral, in
Lender’s opinion, is not jeopardized.

Hazardous Substances. Grantor represents and warrants that the Collateral never has been, and
never will be so long as this Agreement remains a lien on the Collateral, used in violation of
any Environmental Laws or for the generation, manufacture, storage, transportation, treatment,
disposal, release or threatened release of any Hazardous Substance. The representations and
warranties contained herein are based on Grantor’s due diligence in investigating the Collateral
for Hazardous Substances. Grantor hereby (1) releases and waives any future claims against
Lender for indemnity or contribution in the event Grantor becomes liable for cleanup or other
costs under any Environmental Laws, and (2) agrees to indemnify, defend, and hold harmless
Lender against any and all claims and losses resulting from a breach of this provision of this
Agreement. This obligation to indemnify and defend shall survive the payment of the
Indebtedness and the satisfaction of this Agreement.

Maintenance of Casualty Insurance. Grantor shall procure and maintain all risks insurance,
including without limitation fire, theft and liability coverage together with such other
insurance as Lender may require with respect to the Collateral, in form, amounts, coverages and
basis reasonably acceptable to Lender and issued by a company or companies reasonably acceptable
to Lender. Grantor, upon request of Lender, will deliver to Lender from time to time the
policies or certificates of insurance in form satisfactory to Lender,

 

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including stipulations that coverages will not be cancelled or diminished without at least
thirty (30) days’ prior written notice to Lender and not including any declaimer of the
insurer’s liability for failure to give such a notice. Each insurance policy also shall include
an endorsement providing that coverage in favor of Lender will not be impaired in any way by any
act, omission or default of Grantor or any other person. In connection with all policies
covering assets in which Lender holds or is offered a security interest, Grantor will provide
Lender with such loss payable or other endorsements as Lender may require. If Grantor at any
time falls to obtain or maintain any insurance as required under this Agreement, Lender may (but
shall not be obligated to) obtain such insurance as Lender deems appropriate, including if
Lender so chooses “single interest insurance,” which will cover only Lender’s interest in the
Collateral.

Application of Insurance Proceeds. Grantor shall promptly notify Lender of any lose or damage
to the Collateral, whether or not such casualty or loss is covered by insurance. Lender may
make proof of loss if Grantor fails to do so within fifteen (15) days of the casualty. All
proceeds of any insurance on the Collateral, including accrued proceeds thereon, shall be held
by Lender as part of the Collateral. If Lender consents to repair or replacement of the damaged
or destroyed Collateral, Lender shall, upon satisfactory proof of expenditure, pay or reimburse
Grantor from the proceeds for the reasonable cost of repair or restoration. If Lender does not
consent to repair or replacement of the Collateral, Lender shall retain a sufficient amount of
the proceeds to pay all of the Indebtedness, and shall pay the balance to Grantor. Any proceeds
which have not been disbursed within six (6) months after their receipt and which Grantor has
not committed to the repair or restoration Of the Collateral shall be used to prepay the
Indebtedness.

Insurance Reserves. Lender may require Grantor to maintain with Lender reserves for payment of
insurance premiums, which reserves shall be created by monthly payments from Grantor of a sum
estimated by Lender to be sufficient to produce, at least fifteen (15) days before the premium
due date, amounts at least equal to the insurance premiums to be paid. If fifteen (15) days
before payment is due, the reserve funds are insufficient, Grantor shall upon demand pay any
deficiency to Lender. The reserve funds shall be held by Lender as a general deposit and shall
constitute a non-interest-bearing account which Lender may satisfy by payment of the insurance
premiums required to be paid by Grantor as they become due. Lender does not hold the reserve
funds in trust for Grantor, and Lender is not the agent of Grantor for payment of the insurance
premiums required to be paid by Grantor. The responsibility for the payment of premiums shall
remain Grantor’s sole responsibility.

Insurance Reports. Grantor, upon request of Lender, shall furnish to Lender reports on each
existing policy of insurance showing such information as Lender may reasonably request including
the following: (1) the name of the insurer; (2) the risks insured; (3) the amount of the policy;
(4) the property insured; (5) the then current value on the basis of which Insurance has been
obtained and the manner of determining that value; and (6) the expiration date of the policy.
In addition, Grantor shall upon request by Lender (however not more often than annually) have an
independent appraiser satisfactory to Lender determine, as applicable, the cash value or
replacement cost of the Collateral.

Financing Statements. Grantor authorizes Lender to file a UCC financing statement, or
alternatively, a copy of this Agreement to perfect Lender’s security interest. At Lender’s
request, Grantor additionally agrees to sign all other documents that are necessary to perfect,

 

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protect, and continue Lender’s security interest in the Property. Grantor will pay all filing
fees, title transfer fees, and other fees and costs involved unless prohibited by law or unless
Lender is required by law to pay such fees and costs. Grantor irrevocably appoints Lender to
execute documents necessary to transfer title if there is a default. Lender may file a copy of
this Agreement as a financing statement. If Grantor changes Grantor’s name or address, or the
name or address of any person granting a security interest under this Agreement changes, Grantor
will promptly notify the Lender of such change.

GRANTOR’S RIGHT TO POSSESSION AND TO COLLECT ACCOUNTS. Until default and except as otherwise
provided below with respect to accounts, Grantor may have possession of the tangible personal
property and beneficial use of all the Collateral and may use it in any lawful manner not
inconsistent with this Agreement or the Related Documents, provided that Grantor’s right to
possession and beneficial use shall not apply to any Collateral where possession of the Collateral
by Lender is required by law to perfect Lender’s security interest in such Collateral. Until
otherwise notified by Lender, Grantor may collect any of the Collateral consisting of accounts. At
any time and even though no Event of Default exists, Lender may exercise its rights to collect the
accounts and to notify account debtors to make payments directly to Lender for application to the
indebtedness. If Lender at any time has possession of any Collateral, whether before or after an
Event of Default. Lender shall be deemed to have exercised reasonable care in the custody and
preservation of the Collateral if Lender takes such action for that purpose as Grantor shall
request or as Lender, in Lender’s sole discretion, shall deem appropriate under the circumstances,
but failure to honor any request by Grantor shall not of itself be deemed to be a failure to
exercise reasonable care. Lender shall not be required to take any steps necessary to preserve any
rights in the Collateral against prior parties, nor to protect, preserve or maintain any security
interest given to secure the Indebtedness.

LENDER’S EXPENDITURES. If any action or proceeding is commenced that would materially affect
Lender’s interest in the Collateral or if Grantor fails to comply with any provision of this
Agreement or any Related Documents, including but not limited to Grantor’s failure to discharge or
pay when due any amounts Grantor is required to discharge or pay under this Agreement or any
Related Documents, Lender on Grantor’s behalf may (but shall not be obligated to) take any action
that Lender deems appropriate, including but not limited to discharging or paying all taxes, liens,
security interests, encumbrances and other claims, at any time levied or placed on the Collateral
and paying all costs for insuring, maintaining and preserving the Collateral. All such
expenditures incurred or paid by Lender for such purposes will then bear interest at the rate
charged under the Note from the date incurred or paid by Lender to the date of repayment by
Grantor. All such expenses will become a part of the Indebtedness and, at Lender’s option, will
(A) be payable on demand; (B) be added to the balance of the Note and be apportioned among and be
payable with any Installment payments to become due during either (1) the term of any applicable
insurance policy; or (2) the remaining term of the Note; or (C) be treated as a balloon payment
which will be due and payable at the Note’s maturity. The Agreement also will secure payment of
these amounts. Such right shall be in addition to all other rights and remedies to which Lender
may be entitled upon Default,

DEFAULT. Each of the following shall constitute an Event of Default under this Agreement:

Payment Default. Grantor fails to make any payment when due under the Indebtedness.

 

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Other Defaults. Grantor fails to comply with or to perform any other term, obligation, covenant
or condition contained in this Agreement or in any of the Related Documents or to comply with or
to perform any term, obligation, covenant or condition contained in any other agreement between
Lender and Grantor.

Default in Favor of Third Parties. Should Borrower or any Grantor default under any loan,
extension of credit, security agreement, purchase or sales agreement, or any other agreement, in
favor of any other creditor or person that may materially affect any or Grantor’s property or
Grantors or any Grantor’s ability to repay the Indebtedness or perform their respective
obligations under this Agreement or any of the Related Documents.

False Statements. Any warranty, representation or statement made or furnished to Lender by
Grantor or on Grantor’s behalf under this Agreement or the Related Documents is false or
misleading in any material respect, either now or at the time made or furnished or becomes false
or misleading at any time thereafter.

Defective Collateralization. This Agreement or any of the Related Documents ceases to be in
full force and effect (including failure of any collateral document to create a valid and
perfected security interest or lien) at any time and for any reason.

Insolvency. The dissolution or termination of Grantor’s existence as a going business, the
Insolvency of Grantor, the appointment of a receiver for any part of Grantor’s property, any
assignment for the benefit of creditors, any type of creditor workout, or the commencement of
any proceeding under any bankruptcy or insolvency laws by or against Grantor.

Creditor or Forfeiture Proceeding. Commencement of foreclosure or forfeiture proceedings,
whether by judicial proceeding, self-help, repossession or any other method, by any creditor of
Grantor or by any governmental agency against any collateral securing the indebtedness. This
includes a garnishment of any of Grantor’s accounts, including deposit accounts, with Lender.
However, this Event of Default shall not apply if there is a good faith dispute by Grantor as to
the validity or reasonableness of the claim which is the basis of the creditor or forfeiture
proceeding and if Grantor gives Lender written notice of the creditor or forfeiture proceeding
and deposits with Lender monies or a surety bond for the creditor or forfeiture proceeding, in
an amount determined by Lender, in its sole discretion, as being an adequate reserve or bond for
the dispute.

Events Affecting Guarantor. Any of the preceding events occurs with respect to any Guarantor of
any of the Indebtedness or Guarantor dies or becomes incompetent or revokes or disputes the
validity of, or liability under any Guaranty of the Indebtedness.

Adverse Change. A material adverse change occurs in Grantor’s financial condition, or Lender
believes the prospect of payment or performance of the Indebtedness is impaired.

Insecurity. Lender in good faith believes itself insecure.

Cure Provision. If any default, other than a default in payment is curable and if Grantor has
not been given a notice of a breach of the same provision of this Agreement within the preceding
twelve (12) months, it may be cured if Grantor, after receiving written notice from Lender
demanding cure of such default: (1) cures the default within ten (10) days; or (2) if the cure
requires more than ten (10) days, immediately initiates steps which Lender deems in

 

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Lender’s sole discretion to be sufficient to cure the default and thereafter continues and
completes all reasonable and necessary steps sufficient to produce compliance as soon as
reasonably practical.

RIGHTS AND REMEDIES ON DEFAULT. If an Event of Default occurs under this Agreement, at any time
thereafter, Lender shall have all the rights of a secured party under the Minnesota Uniform
Commercial Code. In addition and without limitation, Lender may exercise any one or more of the
following rights and remedies:

Accelerate Indebtedness. Lender may declare the entire Indebtedness, including any prepayment
penalty which Grantor would be required to pay, immediately due and payable, without notice of
any kind to Grantor.

Assemble Collateral. Lender may require Grantor to deliver to Lender all or any portion of the
Collateral and any and all certificates of title and other documents relating to the Collateral.
Lender may require Grantor to assemble the Collateral and make it available to Lender at a
place to be designated by Lender. Lender also shall have full power to enter upon the property
of Grantor to take possession of and remove the Collateral. If the Collateral contains other
goods not covered by this Agreement at the time of repossession, Grantor agrees Lender may take
such other goods, provided that Lender makes reasonable efforts to return them to Grantor after
repossession.

Sell the Collateral. Lender shall have full power to sell, lease, transfer, or otherwise deal
with the Collateral or proceeds thereof in Lender’s own name or that of Grantor. Lender may
sell the Collateral at public auction or private sale. Unless the Collateral threatens to
decline speedily in value or is of a type customarily sold on a recognized market, Lender will
give Grantor, and other persons as required by law, reasonable notice of the time and place of
any public sale, or the time after which any private sale or any other disposition of the
Collateral is to be made. However, no notice need be provided to any person who, after Event of
Default occurs, enters into and authenticates an agreement waiving that person’s right to
notification of sale. The requirements of reasonable notice shall be met if such notice is
given at least ten (10) days before the time of the sale or disposition. All expenses relating
to the disposition of the Collateral, including without limitation the expenses of retaking,
holding, insuring, preparing for sale and selling the Collateral, shall become a part of the
Indebtedness secured by this Agreement and shall be payable on demand, with interest at the Note
rate from date of expenditure until repaid.

Appoint Receiver. Lender shall have the right to have a receiver appointed to take possession
of all or any part of the Collateral, with the power to protect and preserve the Collateral, to
operate the Collateral preceding foreclosure or sale, and to collect the Rents from the
Collateral and apply the proceeds, over and above the cost of the receivership, against the
Indebtedness. The receiver may serve without bond if permitted by law. Lender’s right to the
appointment of a receiver shall exist whether or not the apparent value of the Collateral
exceeds the Indebtedness by a substantial amount. Employment by Lender shall not disqualify a
person from serving as a receiver.

Collect Revenues, Apply Accounts. Lender, either itself or through a receiver, may Collect the
payments, rents, income, and revenues from the Collateral. Lender may at any time in Lender’s
discretion transfer any Collateral into Lender’s own name or that of Lender’s

 

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nominee and receive the payments, rents, income, and revenues therefrom and hold the same as
security for the Indebtedness or apply it to payment of the Indebtedness in such order of
preference as Lender may determine. Insofar as the Collateral consists of accounts, general
intangibles, insurance policies, instruments, chattel paper, theses in action, or similar
property. Lender may demand, collect, receipt for, settle, compromise, adjust, sue for,
foreclose, or realize on the Collateral as Lender may determine, whether or not Indebtedness or
Collateral is then due. For these purposes, Lender may, on behalf of and in the name of
Grantor, receive, open and dispose of mail addressed to Grantor; change any address to which
mail and payments are to be sent; and endorse notes, checks, drafts, money orders, documents of
title, instruments and items pertaining to payment, shipment or storage of any Collateral. To
facilitate collection, Lender may notify account debtors and obligors on any Collateral to make
payments directly to Lender.

Obtain Deficiency. If Lender chooses to sell any or all of the Collateral, Lender may obtain a
judgment against Grantor for any deficiency remaining on the Indebtedness due to Lender after
application of all amounts received from the exercise of the rights provided in this Agreement.
Grantor shall be liable for a deficiency even if the transaction described in this subsection is
a sale of accounts or chattel paper.

Other Rights and Remedies. Lender shall have all the rights and remedies of a secured creditor
under the provisions of the Uniform Commercial Code, as may be amended from time to time. In
addition, Lender shall have and may exercise any or all other rights and remedies it may have
available at law, in equity, or otherwise.

Election of Remedies. Except as may be prohibited by applicable law, all of Lender’s rights and
remedies, whether evidenced by this Agreement, the Related Documents, or by any other writing,
shall be cumulative and may be exercised singularly or concurrently. Election by Lender to
pursue any remedy shall not exclude pursuit of any other remedy, and an election to make
expenditures or to take action to perform an obligation of Grantor under this Agreement, after
Grantor’s failure to perform, shall not effect Lender’s right to declare a default and exercise
its remedies.

MISCELLANEOUS PROVISIONS. The following miscellaneous provisions are a part of this Agreement:

Amendments. This Agreement, together with any Related Documents, constitutes the entire
understanding and agreement of the parties as to the matters set forth in this Agreement. No
alteration of or amendment to this Agreement shall be effective unless given in writing and
signed by the party or parties sought to be charged or bound by the alteration or amendment.

Attorneys’ Fees; Expenses. Grantor agrees to pay upon demand all of Lender’s costs
and-expenses, including Lender’s reasonable attorneys’ fees and Lender’s legal expenses,
incurred in connection with the enforcement of this Agreement. Lender may hire or pay someone
else to help enforce this Agreement, and Grantor shall pay the costs and expanses of such
enforcement Costs and expenses include Lender’s reasonable attorneys’ fees and legal expenses
whether or not there is a lawsuit, including reasonable attorneys’ fees and legal expenses for
bankruptcy proceedings (including efforts to modify or vacate any automatic stay or injunction),
appeals, and any anticipated post-judgment collection services. Grantor also shall pay all
court costs and such additional fees as may be directed by the court.

 

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Caption Headings. Caption headings in this Agreement are for convenience purposes only and are
not to be used to interpret or define the provisions of this Agreement.

Governing Law. This Agreement will be governed by federal law applicable to Lender and, to the
extent not preempted by federal law, the laws of the State of Minnesota without regard to its
conflicts of law provisions. This Agreement has been accepted by Lender in the State of
Minnesota.

Choice of Venue. If there is a lawsuit, Grantor agrees upon Lender’s request to submit to the
jurisdiction of the courts of Ramsey County, State of Minnesota.

No Waiver by Lender. Lender shall not be deemed to have waived any rights under this Agreement
unless such waiver is given in writing and signed by Lender. No delay or omission on the part
of Lender in exercising any right shall operate as a waiver of such right or any other right. A
waiver by Lender of a provision of this Agreement shall not prejudice or constitute a waiver of
Lender’s right otherwise to demand strict compliance with that provision or any other provision
of this Agreement. No prior waiver by Lender, nor any course of dealing between Lender and
Grantor, shall constitute a waiver of any of Lender’s rights or of any of Grantor’s obligations
as to any future transactions. Whenever the consent of Lender is required under this Agreement,
the granting of such consent by Lender in any instance shall not constitute continuing consent
to subsequent instance; where such consent is required and in all cases such consent may be
granted or withheld in the sole discretion of Lender.

Notices. Any notice required to be given under this Agreement shall be given in writing, and
shall be effective when actually delivered, when actually received by telefacsimile (unless
otherwise required by law), when deposited with a nationally recognized overnight courier, or,
if mailed, when deposited in the United States mail, as first class, certified or registered
mail postage prepaid, directed to the addresses shown near the beginning of this Agreement. Any
party may change its address for notices under this Agreement by giving formal written notice to
the other parties, specifying that the purpose of the notice is to change the party’s address.
For notice purposes, Grantor agrees to keep Lender informed at all times of Grantor’s current
address. Unless otherwise provided or required by law, if there is more than one Grantor, any
notice given by Lender to any Grantor is deemed to be notice given to all Grantors.

Power of Attorney. Grantor hereby appoints Lender as Grantor’s irrevocable attorney-in-fact for
the purpose of executing any documents necessary to perfect, amend, or to continue the security
interest granted in this Agreement or to demand termination of filings of other secured parties.
Lender may at any time, and without further authorization from Grantor, file a carbon,
photographic or other reproduction of any financing statement or of this Agreement for use as a
financing statement. Grantor will reimburse Lender for all expenses for the perfection and the
continuation of the perfection of Lender’s security interest in the Collateral.

Severability. If a court of competent jurisdiction finds any provision of this Agreement to be
illegal, invalid, or unenforceable as to any circumstance, that finding shall not make the
offending provision illegal, invalid, or unenforceable as to any other circumstance. If
feasible, the offending provision shall be considered modified so that it becomes legal, valid

 

10

 

and enforceable. If the offending provision cannot be so modified, it shall be considered
deleted from this Agreement. Unless otherwise required by law, the illegality, invalidity, or
unenforceability of any provision of this Agreement shall not effect the legality, validity or
enforceability of any other provision of this Agreement.

Successors and Assigns. Subject to any limitations stated in this Agreement on transfer of
Grantor’s interest, this Agreement shall be binding upon and inure to the benefit of the
parties, their successors and assigns. If ownership of the Collateral becomes vested in a
person other than Grantor, Lender, without notice to Grantor, may deal with Grantor’s successors
with reference to this Agreement and the indebtedness by way of forbearance or extension without
releasing Grantor from the obligations of this Agreement or liability under the Indebtedness.

Survival of Representations and Warranties. All representations, warranties, and agreements
made by Grantor in this Agreement shall survive the execution and delivery of this Agreement,
shall be continuing in nature, and shall remain in full force and effect until such time as
Grantor’s indebtedness shall be paid in full.

Time is of the Essence. Time is of the essence in the performance of this Agreement.

DEFINITIONS. The following capitalized words and terms shall have the following meanings when used
in this Agreement. Unless specifically stated to the contrary, all references to dollar amounts
shall mean amounts in lawful money of the United States of America. Words and terms used in the
singular shall include the plural, and the plural shall include the singular, as the context may
require. Words and terms not otherwise defined in this Agreement shall have the meanings
attributed to such terms in the Uniform Commercial Code:

Agreement. The word “Agreement” means this Commercial Security Agreement, as this Commercial
Security Agreement may be amended or modified from time to time, together with all exhibits and
schedules attached to this Commercial Security Agreement from time to time.

Borrower. The word “Borrower” means Broadview institute, Inc. and includes all co-signers and
co-makers signing the Note and all their successors and assigns.

Collateral. The word “Collateral” means all of Grantor’s right, title and interest in and to
all the Collateral as described in the Collateral Description section of this Agreement.

Default. The word “Default” means the Default set forth in this Agreement in the section titled
“Default”.

Environmental Laws. The words “Environmental Laws” mean any and all state, federal and local
statutes, regulations and ordinances relating to the protection of human health or the
environment, including without limitation the Comprehensive Environmental Response,
Compensation, and Liability Act of 1980, as amended, 42 U.S.C. Section 9601, et seq. (“CERCLA”),
the Superfund Amendments and Reauthorization Act of 1986, Pub. L. No. 99-499 (“SARA”), the
Hazardous Materials Transportation Act, 48 U.S.C. Section 1801, et seq., the Resource
Conservation and Recovery Act, 42 U.S.C. Section 6901, et seq., or other applicable state or
federal laws, rules, or regulations adopted pursuant thereto or common
law, and shall also include pollutants, contaminants, polychlorinated biphenyls, asbestos, urea
formaldehyde, petroleum and petroleum products, and agricultural chemicals.

 

11

 

Event of Default. The words “Event of Default” mean any of the events of default set forth in
this Agreement in the default section of this Agreement.

Grantor. The word “Grantor” means Broadview Institute, Inc.

Guarantor. The word “Guarantor” means any guarantor, surety, or accommodation parry of any or
all of the Indebtedness.

Guaranty. The word “Guaranty” means the guaranty from Guarantor to Lender, including without
limitation a guaranty of all or part of the Note.

Hazardous Substances. The words “Hazardous Substances” mean materials that, because of their
quantity, concentration or physical, chemical or infectious characteristics, may cause or pose a
present or potential hazard to human health or the environment when improperly used, treated,
stored, disposed of, generated, manufactured, transported or otherwise handled. The words
“Hazardous Substances” are used in their very broadest sense and include without limitation any
and all hazardous or toxic substances, materials or waste as defined by or listed under the
Environmental Laws. The term “Hazardous Substances” also includes, without limitation,
petroleum and petroleum by-products or any fraction thereof and asbestos.

Indebtedness. The word “Indebtedness” means the indebtedness evidenced by the Note or Related
Documents, including all principal and interest together with all other indebtedness and costs
and expenses for which Grantor is responsible under this Agreement or under any of the Related
Documents.

Lender. The word “Lender” means American Bank of St. Paul, its successors and assigns.

Note. The word “Note” means the Note executed by Broadview Institute, Inc. in the principal
amount of $300,000.00 dated March 27, 2007, together with all renewals of, extensions of,
modifications of, refinancings of, consolidations of, and substitutions for the note or credit
agreement.

Property. The word “Property” means all of Grantor’s right, title and interest in and to all
the Property as described in the “Collateral Description” section of this Agreement.

Related Documents. The words “Related Documents” mean all promissory notes, credit agreements,
loan agreements, environmental agreements, guaranties, security agreements, mortgage, deeds of
trust, security deeds, collateral mortgages, and all other instruments, agreements and
documents, whether now or hereafter existing, executed in connection with the indebtedness.

 

12

 

GRANTOR HAS READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS COMMERCIAL SECURITY AGREEMENT AND AGREES
TO ITS TERMS. THIS AGREEMENT IS DATED MARCH 27, 2007.

	 	 	 	 	 
	GRANTOR:	 	 
	 

	 	 	 	 
	BROADVIEW INSTITUTE, INC.	 	 
	 

	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	 

	 	Terry L. Myhre, CEO of Broadview Institute, Inc.	 	 

 

13Unassociated Document

    Execution
      Copy        

    

    
      

      

    

     

     

    ASSET
      BACKED FUNDING CORPORATION,

    Depositor

     

    CREDIT-BASED
      ASSET SERVICING AND SECURITIZATION LLC,

    Seller

     

    LITTON
      LOAN SERVICING LP,

    Servicer

     

    and

     

    LASALLE
      BANK NATIONAL ASSOCIATION,

    Trustee

     

    POOLING
      AND SERVICING AGREEMENT

     

    Dated
      as
      of May 1, 2007

     

    2007-CB5
      Trust

     

    C-BASS
      Mortgage Loan Asset-Backed Certificates, Series 2007-CB5

     

     

    

     

    
      

      

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    TABLE
      OF
      CONTENTS

    Page

    

      
        	
                ARTICLE
                  I DEFINITIONS

              	
                11

              
	 	 	 
	
                Section
                  1.01.

              	
                Defined
                  Terms.

              	
                11

              
	
                Section
                  1.02.

              	
                Accounting.

              	
                62

              
	 	 
	
                ARTICLE
                  II CONVEYANCE OF MORTGAGE LOANS; ORIGINAL ISSUANCE OF
                  CERTIFICATES

              	
                62

              
	 	 	 
	
                Section
                  2.01.

              	
                Conveyance
                  of Mortgage Loans.

              	
                62

              
	
                Section
                  2.02.

              	
                Acceptance
                  by Trustee.

              	
                65

              
	
                Section
                  2.03.

              	
                Repurchase
                  or Substitution of Mortgage Loans by the Seller.

              	
                66

              
	
                Section
                  2.04.

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

              	
                69

              
	
                Section
                  2.05.

              	
                Representations,
                  Warranties and Covenants of the Servicer.

              	
                70

              
	
                Section
                  2.06.

              	
                Representations
                  and Warranties of the Depositor.

              	
                72

              
	
                Section
                  2.07.

              	
                Issuance
                  of Certificates and the Uncertificated Regular Interests.

              	
                73

              
	
                Section
                  2.08.

              	
                Representations
                  and Warranties of the Seller.

              	
                74

              
	
                Section
                  2.09.

              	
                Covenants
                  of the Seller.

              	
                76

              
	 	 
	
                ARTICLE
                  III ADMINISTRATION AND SERVICING OF
                  THE TRUST FUND

              	
                76

              
	 	 	 
	
                Section
                  3.01.

              	
                Servicer
                  to Act as Servicer.

              	
                76

              
	
                Section
                  3.02.

              	
                Collection
                  of Mortgage Loan Payments.

              	
                79

              
	
                Section
                  3.03.

              	
                Realization
                  Upon Defaulted Mortgage Loans.

              	
                79

              
	
                Section
                  3.04.

              	
                Collection
                  Account, Distribution Account and Cap Carryover Reserve
                  Account.

              	
                80

              
	
                Section
                  3.05.

              	
                Permitted
                  Withdrawals From the Collection Account.

              	
                83

              
	
                Section
                  3.06.

              	
                Establishment
                  of Escrow Account; Deposits in Escrow Account.

              	
                84

              
	
                Section
                  3.07.

              	
                Permitted
                  Withdrawals From Escrow Account.

              	
                85

              
	
                Section
                  3.08.

              	
                Payment
                  of Taxes, Insurance and Other Charges; Collections
                  Thereunder.

              	
                85

              
	
                Section
                  3.09.

              	
                Transfer
                  of Accounts.

              	
                86

              
	
                Section
                  3.10.

              	
                Maintenance
                  of Hazard Insurance.

              	
                86

              
	
                Section
                  3.11.

              	
                Maintenance
                  of Mortgage Impairment Insurance Policy.

              	
                87

              
	
                Section
                  3.12.

              	
                Fidelity
                  Bond, Errors and Omissions Insurance.

              	
                88

              
	
                Section
                  3.13.

              	
                Title,
                  Management and Disposition of REO Property and Certain Delinquent
                  Mortgage
                  Loans.

              	
                88

              
	
                Section
                  3.14.

              	
                Due-on-Sale
                  Clauses; Assumption and Substitution Agreements.

              	
                90

              
	
                Section
                  3.15.

              	
                Notification
                  of Adjustments.

              	
                91

              
	
                Section
                  3.16.

              	
                Optional
                  Purchases and Sales of Mortgage Loans by Servicer.

              	
                91

              
	
                Section
                  3.17.

              	
                Trustee
                  to Cooperate; Release of Files.

              	
                92

              
	
                Section
                  3.18.

              	
                Servicing
                  Compensation.

              	
                93

              
	
                Section
                  3.19.

              	
                Annual
                  Statement as to Compliance.

              	
                93

              
	
                Section
                  3.20.

              	
                Assessment
                  of Compliance with Servicing Criteria; Independent Public Accountants’
                  Attestation.

              	
                94

              

      

       

      
        
           

        

        
          i

          
            

          

        

        
           

        

      

       

      
        	
                Section
                  3.21.

              	
                Access
                  to Certain Documentation and Information Regarding the Mortgage
                  Loans.

              	
                96

              
	
                Section
                  3.22.

              	
                Reserved.

              	
                96

              
	
                Section
                  3.23.

              	
                Obligations
                  of the Servicer in Respect of Compensating Interest.

              	
                96

              
	
                Section
                  3.24.

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

              	
                96

              
	
                Section
                  3.25.

              	
                Investment
                  of Funds in the Collection Account and the Distribution
                  Account.

              	
                96

              
	
                Section
                  3.26.

              	
                Liability
                  of Servicer; Indemnification.

              	
                98

              
	
                Section
                  3.27.

              	
                Reports
                  of Foreclosure and Abandonment of Mortgaged Properties.

              	
                99

              
	
                Section
                  3.28.

              	
                Protection
                  of Assets.

              	
                99

              
	
                Section
                  3.29.

              	
                Periodic
                  Filings.

              	
                99

              
	
                Section
                  3.30.

              	
                Subservicing
                  Agreements between the Servicer and Subservicers.

              	
                105

              
	
                Section
                  3.31.

              	
                Successor
                  Subservicers.

              	
                108

              
	
                Section
                  3.32.

              	
                No
                  Contractual Relationship between Subservicers and the
                  Trustee.

              	
                108

              
	
                Section
                  3.33.

              	
                Assumption
                  or Termination of Subservicing Agreements by Trustee.

              	
                108

              
	
                Section
                  3.34.

              	
                Subservicing
                  Accounts.

              	
                109

              
	 	 
	
                ARTICLE
                  IV FLOW OF FUNDS

              	
                109

              
	 	 	 
	
                Section
                  4.01.

              	
                Interest
                  Distributions.

              	
                109

              
	
                Section
                  4.02.

              	
                Distributions
                  of Principal and Monthly Excess Cashflow Amounts.

              	
                111

              
	
                Section
                  4.03.

              	
                Allocation
                  of Losses.

              	
                116

              
	
                Section
                  4.04.

              	
                Method
                  of Distribution.

              	
                117

              
	
                Section
                  4.05.

              	
                Distributions
                  on Book-Entry Certificates.

              	
                117

              
	
                Section
                  4.06.

              	
                Statements.

              	
                117

              
	
                Section
                  4.07.

              	
                Remittance
                  Reports; Advances.

              	
                121

              
	
                Section
                  4.08.

              	
                REMIC
                  Distributions.

              	
                122

              
	
                Section
                  4.09.

              	
                Supplemental
                  Interest Trust.

              	
                127

              
	 	 
	
                ARTICLE
                  V THE CERTIFICATES

              	
                131

              
	 	 	 
	
                Section
                  5.01.

              	
                The
                  Certificates.

              	
                131

              
	
                Section
                  5.02.

              	
                Registration
                  of Transfer and Exchange of Certificates.

              	
                132

              
	
                Section
                  5.03.

              	
                Mutilated,
                  Destroyed, Lost or Stolen Certificates.

              	
                137

              
	
                Section
                  5.04.

              	
                Persons
                  Deemed Owners.

              	
                138

              
	
                Section
                  5.05.

              	
                Appointment
                  of Paying Agent.

              	
                138

              
	 	 
	
                ARTICLE
                  VI THE SELLER, THE SERVICER AND THE DEPOSITOR

              	
                138

              
	 	 	 
	
                Section
                  6.01.

              	
                Liability
                  of the Seller, the Servicer and the Depositor.

              	
                138

              
	
                Section
                  6.02.

              	
                Merger
                  or Consolidation of, or Assumption of the Obligations of, the Seller,
                  the
                  Servicer or the Depositor.

              	
                138

              
	
                Section
                  6.03.

              	
                Limitation
                  on Liability of the Servicer and Others.

              	
                139

              
	
                Section
                  6.04.

              	
                Servicer
                  Not to Resign.

              	
                140

              
	
                Section
                  6.05.

              	
                Advance
                  Facility.

              	
                141

              
	 	 
	
                ARTICLE
                  VII DEFAULT

              	
                143

              
	 	 	 
	
                Section
                  7.01.

              	
                Servicer
                  Events of Termination.

              	
                143

              

      

       

      
        
           

        

        
          ii

          
            

          

        

        
           

        

      

       

      
        	
                Section
                  7.02.

              	
                Trustee
                  to Act; Appointment of Successor.

              	
                145

              
	
                Section
                  7.03.

              	
                Waiver
                  of Defaults.

              	
                146

              
	
                Section
                  7.04.

              	
                Notification
                  to Certificateholders.

              	
                147

              
	
                Section
                  7.05.

              	
                Survivability
                  of Servicer Liabilities.

              	
                147

              
	 	 
	
                ARTICLE
                  VIII THE TRUSTEE

              	
                147

              
	 	 	 
	
                Section
                  8.01.

              	
                Duties
                  of Trustee.

              	
                147

              
	
                Section
                  8.02.

              	
                Certain
                  Matters Affecting the Trustee.

              	
                149

              
	
                Section
                  8.03.

              	
                Trustee
                  Not Liable for Certificates or Mortgage Loans.

              	
                150

              
	
                Section
                  8.04.

              	
                Trustee
                  May Own Certificates.

              	
                151

              
	
                Section
                  8.05.

              	
                Seller
                  to Pay Trustee Fees and Expenses.

              	
                151

              
	
                Section
                  8.06.

              	
                Eligibility
                  Requirements for Trustee.

              	
                152

              
	
                Section
                  8.07.

              	
                Resignation
                  or Removal of Trustee.

              	
                152

              
	
                Section
                  8.08.

              	
                Successor
                  Trustee.

              	
                153

              
	
                Section
                  8.09.

              	
                Merger
                  or Consolidation of Trustee.

              	
                153

              
	
                Section
                  8.10.

              	
                Appointment
                  of Co-Trustee or Separate Trustee.

              	
                153

              
	
                Section
                  8.11.

              	
                Limitation
                  of Liability.

              	
                155

              
	
                Section
                  8.12.

              	
                Trustee
                  May Enforce Claims Without Possession of Certificates.

              	
                155

              
	
                Section
                  8.13.

              	
                Suits
                  for Enforcement.

              	
                155

              
	
                Section
                  8.14.

              	
                Waiver
                  of Bond Requirement.

              	
                156

              
	
                Section
                  8.15.

              	
                Waiver
                  of Inventory, Accounting and Appraisal Requirement.

              	
                156

              
	 	 
	
                ARTICLE
                  IX REMIC ADMINISTRATION

              	
                156

              
	 	 	 
	
                Section
                  9.01.

              	
                REMIC
                  Administration.

              	
                156

              
	
                Section
                  9.02.

              	
                Prohibited
                  Transactions and Activities.

              	
                158

              
	
                Section
                  9.03.

              	
                Indemnification
                  with Respect to Certain Taxes and Loss of REMIC Status.

              	
                159

              
	
                Section
                  9.04.

              	
                REO
                  Property.

              	
                159

              
	 	 
	
                ARTICLE
                  X TERMINATION

              	
                160

              
	 	 	 
	
                Section
                  10.01.

              	
                Termination.

              	
                160

              
	
                Section
                  10.02.

              	
                Additional
                  Termination Requirements.

              	
                162

              
	 	 
	
                ARTICLE
                  XI MISCELLANEOUS PROVISIONS

              	
                162

              
	 	 	 
	
                Section
                  11.01.

              	
                Amendment.

              	
                162

              
	
                Section
                  11.02.

              	
                Recordation
                  of Agreement; Counterparts.

              	
                164

              
	
                Section
                  11.03.

              	
                Limitation
                  on Rights of Certificateholders.

              	
                164

              
	
                Section
                  11.04.

              	
                Governing
                  Law; Jurisdiction.

              	
                165

              
	
                Section
                  11.05.

              	
                Notices.

              	
                165

              
	
                Section
                  11.06.

              	
                Severability of Provisions.

              	
                166

              
	
                Section
                  11.07.

              	
                Article
                  and Section References.

              	
                166

              
	
                Section
                  11.08.

              	
                Notice
                  to the Rating Agencies.

              	
                166

              
	
                Section
                  11.09.

              	
                Further
                  Assurances.

              	
                167

              
	
                Section
                  11.10.

              	
                Benefits
                  of Agreement.

              	
                167

              
	
                Section
                  11.11.

              	
                Acts
                  of Certificateholders.

              	
                167

              
	
                Section
                  11.12.

              	
                Regulation
                  AB Compliance; Intent of the Parties; Reasonableness.

              	
                168

              

      

    

    

      
        
           

        

        
          iii

          
            

          

        

        
           

        

      

    EXHIBITS:

     

    
      	
              Exhibit
                A-1

            	
              Form
                of Class A-1 Certificates

            

    

    
      	
              Exhibit
                A-2

            	
              Form
                of Class A-2 Certificates

            

    

    
      	
              Exhibit
                A-3

            	
              Form
                of Class A-3 Certificates

            

    

    
      	
              Exhibit
                B-1

            	
              Form
                of Class M-1 Certificates

            

    

    
      	
              Exhibit
                B-2

            	
              Form
                of Class M-2 Certificates

            

    

    
      	
              Exhibit
                B-3

            	
              Form
                of Class M-3 Certificates

            

    

    
      	
              Exhibit
                B-4

            	
              Form
                of Class M-4 Certificates

            

    

    
      	
              Exhibit
                B-5

            	
              Form
                of Class M-5 Certificates

            

    

    
      	
              Exhibit
                B-6

            	
              Form
                of Class M-6 Certificates

            

    

    
      	
              Exhibit
                B-7

            	
              Form
                of Class M-7 Certificates

            

    

    
      	
              Exhibit
                B-8

            	
              Form
                of Class M-8 Certificates

            

    

    
      	
              Exhibit
                B-9

            	
              Form
                of Class M-9 Certificates

            

    

    
      	
              Exhibit
                B-10

            	
              Form
                of Class B-1 Certificates

            

    

    
      	
              Exhibit
                C-1

            	
              Form
                of Class CE-1 Certificates

            

    

    
      	
              Exhibit
                C-2

            	
              Form
                of Class CE-2 Certificates

            

    

    
      	
              Exhibit
                C-3

            	
              Form
                of Class P Certificates

            

    

    
      	
              Exhibit
                C-4

            	
              Form
                of Class R Certificate

            

    

    
      	
              Exhibit
                C-5

            	
              Form
                of Class R-X Certificate

            

    

    
      	
              Exhibit
                D

            	
              Mortgage
                Loan Schedule

            

    

    
      	
              Exhibit
                E

            	
              Form
                of Request for Release of Documents

            

    

    
      	
              Exhibit
                F-1

            	
              Form
                of Initial Certification

            

    

    
      	
              Exhibit
                F-2

            	
              Form
                of Final Certification

            

    

    
      	
              Exhibit
                F-3

            	
              Form
                of Receipt of Mortgage Note

            

    

    
      	
              Exhibit
                G

            	
              Mortgage
                Loan Purchase Agreement

            

    

    
      	
              Exhibit
                H

            	
              Form
                of Lost Note Affidavit

            

    

    
      	
              Exhibit
                I

            	
              Form
                of ERISA Representation

            

    

    
      	
              Exhibit
                J-1

            	
              Form
                of Investment Letter [Non-Rule
                144A]

            

    

    
      	
              Exhibit
                J-2

            	
              Form
                of Rule 144A Investment Letter

            

    

    
      	
              Exhibit
                K

            	
              Form
                of Residual Certificate Transfer
                Affidavit

            

    

    
      	
              Exhibit
                L

            	
              Form
                of Transferor Certificate

            

    

    
      	
              Exhibit
                M

            	
              Form
                of Officer’s Certificate with Respect to
                Prepayments

            

    

    
      	
              Exhibit
                N

            	
              [RESERVED]

            

    

    
      	
              Exhibit
                O-1

            	
              Cap
                Agreement

            

    

    
      	
              Exhibit
                O-2

            	
              Swap
                Agreement

            

    

    
      	
              Exhibit
                P-1

            	
              Form
                of Sarbanes Certification

            

    

    
      	
              Exhibit
                P-2

            	
              Form
                of Certification to be Provided by
                Trustee

            

    

    
      	
              Exhibit
                Q

            	
              Schedule
                of Mortgage Loans without Title
                Policies

            

    

    
      	
              Exhibit
                R

            	
              Form
                of Power of Attorney

            

    

    
      	
              Exhibit
                S

            	
              Servicing
                Criteria

            

    

    
      	
              Exhibit
                T-1

            	
              Form
                8-K Disclosure Information

            

    

    
      	
              Exhibit
                T-2

            	
              Additional
                Form 10-D Disclosure

            

    

    
      	
              Exhibit
                T-3

            	
              Additional
                Form 10-K Disclosure

            

    

    
      	
              Exhibit
                U

            	
              Additional
                Disclosure Notification

            

    

    

    
      
         

      

      
        iv

        
          

        

      

      
         

      

    

    This
      Pooling and Servicing Agreement is dated as of May 1, 2007 (the “Agreement”),
      among
      ASSET BACKED FUNDING CORPORATION, as depositor (the “Depositor”),
      CREDIT-BASED ASSET SERVICING AND SECURITIZATION LLC, as seller (the
“Seller”),
      LITTON LOAN SERVICING LP, as servicer (the “Servicer”),
      and
      LASALLE BANK NATIONAL ASSOCIATION, as trustee (the “Trustee”).

     

    PRELIMINARY
      STATEMENT

     

    The
      Depositor intends to sell pass-through certificates (collectively, the
“Certificates”),
      to be
      issued hereunder in multiple Classes, which in the aggregate will evidence
      the
      entire beneficial ownership interest in the Trust Fund created hereunder. The
      Certificates will consist of eighteen Classes of Certificates, designated as
      (i) the Class A-1, Class A-2 and Class A-3 Certificates, (ii) 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, (iii) the Class B-1
      Certificates, (iv) the Class P Certificates, (v) the Class CE-1 and Class
      CE-2 Certificates and (vi) the Class R and Class R-X
      Certificates.

     

    The
      descriptions of each REMIC that follow are part of the Preliminary Statement.
      Any inconsistencies or ambiguities in this Agreement or in the administration
      of
      this Agreement shall be resolved pursuant to the terms of Section 11.01 hereof
      in a manner that preserves the validity of such REMIC elections described
      below.

     

    REMIC
      1

     

    As
      provided herein, the Trustee will make an election to treat the segregated
      pool
      of assets consisting of the Mortgage Loans and certain other related assets
      subject to this Agreement (but exclusive of the Swap Agreement, the Cap
      Agreement, the Swap Account, the Cap Carryover Reserve Account, the Cap Account,
      the Supplemental Interest Trust and any amounts paid by the Servicer in respect
      of improperly waived prepayment Penalties) as a real estate investment conduit
      (a “REMIC”)
      for
      federal income tax purposes, and such segregated pool of assets will be
      designated as “REMIC 1.” The Class R-1 Interest will represent the sole
      class of “residual interests” in REMIC 1 for purposes of the REMIC
      Provisions under federal income tax law. The following table irrevocably sets
      forth the designation, the Uncertificated REMIC 1 Pass-Through Rate, the
      initial Uncertificated Principal Balance, and solely for purposes of satisfying
      Treasury Regulations Section 1.860G-1(a)(4)(iii), the “latest possible maturity
      date” for each of the REMIC 1 Regular Interests. None of the REMIC 1
      Regular Interests will be certificated.

    

      
        	
                Designation

              	
                Initial
                  Uncertificated 

                Principal
                  or Notional 

                Balance

              	
                Uncertificated
                  REMIC 1 

                Pass-Through
                  Rate

              	
                Latest
                  Possible

                Maturity
                  Date(1)

              
	
                I

              	
                $13,154,811.88

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                I-1-A

              	
                $3,296,832.50

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                I-1-B

              	
                $3,296,832.50

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                I-2-A

              	
                $3,908,508.50

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                I-2-B

              	
                $3,908,508.50

              	
                Variable(2)

              	
                April
                  25, 2047

              

      

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

      
        	
                Designation

              	
                Initial
                  Uncertificated 

                Principal
                  or Notional 

                Balance

              	
                Uncertificated
                  REMIC 1 

                Pass-Through
                  Rate

              	
                Latest
                  Possible

                Maturity
                  Date(1)

              
	
                I-3-A

              	
                $4,486,497.00

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                I-3-B

              	
                $4,486,497.00

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                I-4-A

              	
                $5,040,772.50

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                I-4-B

              	
                $5,040,772.50

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                I-5-A

              	
                $5,585,050.00

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                I-5-B

              	
                $5,585,050.00

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                I-6-A

              	
                $6,022,742.50

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                I-6-B

              	
                $6,022,742.50

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                I-7-A

              	
                $6,350,009.00

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                I-7-B

              	
                $6,350,009.00

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                I-8-A

              	
                $6,311,928.00

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                I-8-B

              	
                $6,311,928.00

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                I-9-A

              	
                $6,113,950.50

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                I-9-B

              	
                $6,113,950.50

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                I-10-A

              	
                $5,859,696.00

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                I-10-B

              	
                $5,859,696.00

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                I-11-A

              	
                $5,591,517.00

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                I-11-B

              	
                $5,591,517.00

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                I-12-A

              	
                $5,341,629.50

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                I-12-B

              	
                $5,341,629.50

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                I-13-A

              	
                $5,102,104.00

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                I-13-B

              	
                $5,102,104.00

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                I-14-A

              	
                $4,866,455.50

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                I-14-B

              	
                $4,866,455.50

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                I-15-A

              	
                $4,668,616.50

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                I-15-B

              	
                $4,668,616.50

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                I-16-A

              	
                $4,655,763.00

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                I-16-B

              	
                $4,655,763.00

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                I-17-A

              	
                $4,579,802.00

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                I-17-B

              	
                $4,579,802.00

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                I-18-A

              	
                $6,269,337.00

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                I-18-B

              	
                $6,269,337.00

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                I-19-A

              	
                $22,455,550.00

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                I-19-B

              	
                $22,455,550.00

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                I-20-A

              	
                $11,798,160.50

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                I-20-B

              	
                $11,798,160.50

              	
                Variable(2)

              	
                April
                  25, 2047

              

      

    

    

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    

     

      
        	
                Designation

              	
                Initial
                  Uncertificated 

                Principal
                  or Notional 

                Balance

              	
                Uncertificated
                  REMIC 1 

                Pass-Through
                  Rate

              	
                Latest
                  Possible

                Maturity
                  Date(1)

              
	
                I-21-A

              	
                $5,888,908.00

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                I-21-B

              	
                $5,888,908.00

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                I-22-A

              	
                $3,449,633.00

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                I-22-B

              	
                $3,449,633.00

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                I-23-A

              	
                $1,595,739.50

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                I-23-B

              	
                $1,595,739.50

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                I-24-A

              	
                $1,439,665.00

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                I-24-B

              	
                $1,439,665.00

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                I-25-A

              	
                $1,323,537.00

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                I-25-B

              	
                $1,323,537.00

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                I-26-A

              	
                $1,208,943.00

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                I-26-B

              	
                $1,208,943.00

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                I-27-A

              	
                $1,155,175.00

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                I-27-B

              	
                $1,155,175.00

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                I-28-A

              	
                $1,103,974.00

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                I-28-B

              	
                $1,103,974.00

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                I-29-A

              	
                $1,147,583.50

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                I-29-B

              	
                $1,147,583.50

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                I-30-A

              	
                $1,146,693.50

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                I-30-B

              	
                $1,146,693.50

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                I-31-A

              	
                $2,478,728.00

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                I-31-B

              	
                $2,478,728.00

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                I-32-A

              	
                $1,471,955.50

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                I-32-B

              	
                $1,471,955.50

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                I-33-A

              	
                $1,189,698.00

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                I-33-B

              	
                $1,189,698.00

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                I-34-A

              	
                $1,163,161.50

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                I-34-B

              	
                $1,163,161.50

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                I-35-A

              	
                $630,274.50

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                I-35-B

              	
                $630,274.50

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                I-36-A

              	
                $606,158.50

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                I-36-B

              	
                $606,158.50

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                I-37-A

              	
                $583,006.00

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                I-37-B

              	
                $583,006.00

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                I-38-A

              	
                $560,775.00

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                I-38-B

              	
                $560,775.00

              	
                Variable(2)

              	
                April
                  25, 2047

              

      

    

    

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    

      
        	
                Designation

              	
                Initial
                  Uncertificated 

                Principal
                  or Notional 

                Balance

              	
                Uncertificated
                  REMIC 1 

                Pass-Through
                  Rate

              	
                Latest
                  Possible

                Maturity
                  Date(1)

              
	
                I-39-A

              	
                $539,428.00

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                I-39-B

              	
                $539,428.00

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                I-40-A

              	
                $518,927.00

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                I-40-B

              	
                $518,927.00

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                I-41-A

              	
                $499,236.50

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                I-41-B

              	
                $499,236.50

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                I-42-A

              	
                $480,323.00

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                I-42-B

              	
                $480,323.00

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                I-43-A

              	
                $462,153.50

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                I-43-A

              	
                $462,153.50

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                I-44-A

              	
                $444,698.00

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                I-44-B

              	
                $444,698.00

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                I-45-A

              	
                $427,926.50

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                I-45-B

              	
                $427,926.50

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                I-46-A

              	
                $411,810.00

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                I-46-B

              	
                $411,810.00

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                I-47-A

              	
                $10,766,967.50

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                I-47-B

              	
                $10,766,967.50

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                I-CE-2

              	
                (3)    

              	
                Variable(2)

              	
                April
                  25, 2047

              

      

    

    ________________

    
      	
              (1)

            	
              Solely
                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 1 Regular
                Interest.

            

    

    
      	
              (2)
                

            	
              Calculated
                in accordance with the definition of “Uncertificated REMIC 1 Pass-Through
                Rate” herein.

            

    

    
      	
              (3)
                

            	
              The
                Class I-CE-2 Interest will accrue interest on its Uncertificated
                Notional
                Amount.

            

    

    

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    REMIC
      2

     

    As
      provided herein, the Trustee shall make an election to treat the segregated
      pool
      of assets consisting of the REMIC 1 Regular Interests as a REMIC for
      federal income tax purposes, and such segregated pool of assets will be
      designated as “REMIC 2.” The Class R-2 Interest will represent the sole
      class of “residual interests” in REMIC 2 for purposes of the REMIC
      Provisions. The following table irrevocably sets forth the designation, the
      Uncertificated REMIC 2 Pass-Through Rate, the initial Uncertificated Balance,
      and solely for purposes of satisfying Treasury Regulations
      Section 1.860G-1(a)(4)(iii), the “latest possible maturity date” for each
      of the Uncertificated REMIC 2 Regular Interests. None of the Uncertificated
      REMIC 2 Interests will be certificated.

    

      
        	
                 

                Designation

              	
                Initial

                Uncertificated
                  

                Principal
                  or Notional 

                Balance

              	
                Uncertificated
                  REMIC 

                2
                  Pass-Through Rate(1)

              	
                Latest
                  Possible

                Maturity
                  Date(1)

              
	
                LT2AA

              	
                $348,051,617.64

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                LT2A1

              	
                $164,951.00

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                LT2A2

              	
                $91,350.00

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                LT2A3

              	
                $22,851.00

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                LT2M1

              	
                $12,963.00

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                LT2M2

              	
                $12,253.00

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                LT2M3

              	
                $6,926.00

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                LT2M4

              	
                $6,215.00

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                LT2M5

              	
                $5,860.00

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                LT2M6

              	
                $5,505.00

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                LT2M7

              	
                $5,327.00

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                LT2M8

              	
                $3,729.00

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                LT2M9

              	
                $4,084.00

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                LT2B1

              	
                $3,552.00

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                LT2ZZ

              	
                $3,647,433.24

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                LT2P

              	
                $100.00

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                LT2IO

              	
                (3)

              	
                Variable(2)

              	
                April
                  25, 2047

              
	
                LT2CE2

              	
                (4)

              	
                Variable(2)

              	
                April
                  25, 2047

              

      

    

    ________________

    
      	
              (1)

            	
              Solely
                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 2 Regular
                Interest.

            

    

    
      	
              (2)

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

            

    

    
      	
              (3)

            	
              The
                Class LT2IO Interest will not have a principal balance but will instead
                accrue interest on the basis of its Uncertificated Notional
                Balance.

            

    

    
      	
              (4)

            	
              The
                Class LT2CE2 Interest will be entitled to 100% of the amounts received
                in
                respect of the REMIC 1 Regular Interest
                I-CE-2.

            

    

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    REMIC
      3

     

    As
      provided herein, the Trustee shall make an election to treat the segregated
      pool
      of assets consisting of the REMIC 2 Regular Interests as a REMIC for federal
      income tax purposes, and such segregated pool of assets will be designated
      as
“REMIC 3.” The Class R-3 Interest represents the sole class of “residual
      interests” in REMIC 3 for purposes of the REMIC Provisions.

     

    The
      following table sets forth (or describes) the Class designation, Uncertificated
      REMIC 3 Pass-Through Rate and initial uncertified Balance for each Class of
      REMIC 3 Regular Interests comprising the “regular interests” in REMIC 3 for
      purposes of the REMIC Provisions:

    

      
        	
                REMIC
                  3 Regular Interest

              	
                Initial
                  Uncertificated Balance

              	
                Pass-Through

                Rate

              	
                Latest
                  Possible

                Maturity
                  Date(1)

              
	
                A-1

              	
                $164,951,000.00

              	
                (2)

              	
                April
                  25, 2047

              
	
                A-2

              	
                 $91,350,000.00

              	
                (2)

              	
                April
                  25, 2047

              
	
                A-3

              	
                 $22,851,000.00

              	
                (2)

              	
                April
                  25, 2047

              
	
                M-1

              	
                 $12,963,000.00

              	
                (2)

              	
                April
                  25, 2047

              
	
                M-2

              	
                 $12,253,000.00

              	
                (2)

              	
                April
                  25, 2047

              
	
                M-3

              	
                 
                   $6,926,000.00

              	
                (2)

              	
                April
                  25, 2047

              
	
                M-4

              	
                  
                  $6,215,000.00

              	
                (2)

              	
                April
                  25, 2047

              
	
                M-5

              	
                  
                  $5,860,000.00

              	
                (2)

              	
                April
                  25, 2047

              
	
                M-6

              	
                  
                  $5,505,000.00

              	
                (2)

              	
                April
                  25, 2047

              
	
                M-7

              	
                  
                  $5,327,000.00

              	
                (2)

              	
                April
                  25, 2047

              
	
                M-8

              	
                  
                  $3,729,000.00

              	
                (2)

              	
                April
                  25, 2047

              
	
                M-9

              	
                  
                  $4,084,000.00

              	
                (2)

              	
                April
                  25, 2047

              
	
                B-1

              	
                  
                  $3,552,000.00

              	
                (2)

              	
                April
                  25, 2047

              
	
                CE-1

              	
                (3)

              	
                (3)

              	
                April
                  25, 2047

              
	
                CE-2

              	
                (4)

              	
                (4)

              	
                April
                  25, 2047

              
	
                P(5)

              	
                $100.00

              	
                N/A

              	
                April
                  25, 2047

              
	
                SWAP-IO

              	
                (6)

              	
                (6)

              	
                April
                  25, 2047

              

      

    

    ________________

    

    
      	
              (1)

            	
              Solely
                for purposes of Treasury Regulations Section 1.860G-1(a)(4)(iii),
                the
                Distribution Date in the month 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 REMIC 3 Regular
                Interests.

            

    

    
      	
              (2)

            	
              Interest
                will accrue on these REMIC 3 Regular Interests at a per annum rate
                equal
                to the lesser of (i) the related Pass-Through Rate of the Corresponding
                Class of Certificates and (ii) the REMIC 3
                Cap.

            

    

     

    
      	 	
              On
                any Distribution Date on which the Certificate Interest Rate for
                the
                Corresponding Class of Certificates exceeds the REMIC 3 Cap, interest
                accruals based on such excess shall be treated as having been paid
                from
                Cap Carryover Reserve Account or the Supplemental Interest Trust,
                as
                applicable. On any Distribution Date on which the Certificate Interest
                Rate on a Class of Certificates is based on the Rate Cap, the excess
                of
                the amount of interest that would have accrued on such Class of
                Certificates if the REMIC 3 Cap were substituted for the Rate Cap
                over the
                interest accruals based on the Rate Cap shall be treated as having
                been
                paid by the related Class of Certificates to the Supplemental Interest
                Trust, all pursuant to and as further provided in Section
                4.09
                herein.

            

    

    
      	
              (3)

            	
              Solely
                for federal income tax purposes, the Class CE-1 Regular Interest
                will have
                an Original Class Certificate Principal Balance equal to the Initial
                Overcollateralization Amount. The Class CE-1 Regular Interest will
                bear
                interest at its Pass-Through Rate based on its Notional
                Amount.

            

    

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    
      	
              (4)

            	
              The
                Class CE-2 Regular Interests will be entitled to 100% of the amounts
                received with respect to the REMIC 2 Regular Interest
                LT2CE2.

            

    

    
      	
              (5)

            	
              The
                Class P REMIC 3 Regular Interests will not bear
                interest.

            

    

    
      	
              (6)

            	
              The
                Class SWAP-IO Interest will not have a principal balance but will
                accrue
                interest on the basis of its Uncertificated Notional
                Balance.

            

    

     

    REMIC
      A

     

    As
      provided herein, the Trustee shall make an election to treat the segregated
      pool
      of assets consisting of the REMIC 3 Class CE-1 Interest as a REMIC for federal
      income tax purposes, and such segregated pool of assets will be designated
      as
“REMIC A.” The REMIC A Class CE-1 Interest represents the sole class of regular
      interests and the Class R-A Interest represents the sole class of “residual
      interests” in REMIC A for purposes of the REMIC Provisions. The REMIC A Class
      CE-1 Interest shall have a principal balance equal to the REMIC 3 Class CE-1
      Interest and shall bear interest at the same rate as the REMIC 3 Class CE-1
      Interest.

     

    REMIC
      B

     

    As
      provided herein, the Trustee shall make an election to treat the segregated
      pool
      of assets consisting of the REMIC 3 Class P Interest as a REMIC for federal
      income tax purposes, and such segregated pool of assets will be designated
      as
“REMIC B.” The REMIC B Class P Interest represents the sole class of regular
      interests and the Class R-B Interest represents the sole class of “residual
      interests” in REMIC B for purposes of the REMIC Provisions. The REMIC B Class P
      Interest shall have a principal balance equal to the REMIC 3 Class P Interest
      and shall bear interest at the same rate as the REMIC 3 Class P
      Interest.

     

    REMIC
      C

     

    As
      provided herein, the Trustee shall make an election to treat the segregated
      pool
      of assets consisting of the REMIC 3 Class B-1 Interest as a REMIC for federal
      income tax purposes, and such segregated pool of assets will be designated
      as
“REMIC C.” The Class B-1 Certificates (exclusive of the right to Cap Carryover
      Amounts) represent the sole class of “regular interests” and the Class R-C
      Interest represents the sole class of “residual interests” in REMIC C for
      purposes of the REMIC Provisions. The Class B-1 Certificates shall have a
      principal balance equal to the REMIC 3 Class B-1 Interest and shall bear
      interest at the same rate as the REMIC 3 Class B-1 Interest.

     

    REMIC
      D

     

    As
      provided herein, the Trustee shall make an election to treat the segregated
      pool
      of assets consisting of the REMIC 3 Class CE-2 Interest as a REMIC for federal
      income tax purposes, and such segregated pool of assets will be designated
      as
“REMIC D.” The Class CE-2 Certificates represent the sole class of “regular
      interests” and the Class R-D Interest represents the sole class of “residual
      interests” in REMIC D for purposes of the REMIC Provisions. The REMIC D Class
      CE-2 Interest shall have a notional balance equal to the REMIC 3 Class CE-2
      Interest and shall bear interest at the same rate as the REMIC 3 Class CE-2
      Interest.

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    Solely
      for purposes of Treasury Regulations Section 1.860G-1(a)(4)(iii), the
      Distribution Date 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 that represents one or more of the “regular
      interests” in REMIC 3, REMIC A, REMIC B, REMIC C or REMIC D.

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    SUMMARY
      OF CERTIFICATES

     

    The
      following table sets forth (or describes) the Class designation, Certificate
      Interest Rate and the Original Class Certificate Principal Balance for each
      Class of Certificates comprising the interests in the Trust Fund created
      hereunder:

    

      
        	
                Class

              	
                Issuing
                  REMIC

              	
                Original
                  Class Certificate

                Principal
                  Balance or Notional Amount

              	
                Certificate
                  Interest

                Rate

              	
                Assumed
                  Final

                Maturity
                  Dates

              
	
                A-1

              	
                3

              	
                $164,951,000.00

              	
                (1)

              	
                April
                  25, 2037

              
	
                A-2

              	
                3

              	
                  $91,350,000.00

              	
                (2)

              	
                April
                  25, 2037

              
	
                A-3

              	
                3

              	
                  $22,851,000.00

              	
                (3)

              	
                April
                  25, 2037

              
	
                M-1

              	
                3

              	
                  $12,963,000.00

              	
                (4)

              	
                April
                  25, 2037

              
	
                M-2

              	
                3

              	
                  $12,253,000.00

              	
                (5)

              	
                April
                  25, 2037

              
	
                M-3

              	
                3

              	
                    $6,926,000.00

              	
                (6)

              	
                April
                  25, 2037

              
	
                M-4

              	
                3

              	
                    $6,215,000.00

              	
                (7)

              	
                April
                  25, 2037

              
	
                M-5

              	
                3

              	
                    $5,860,000.00

              	
                (8)

              	
                April
                  25, 2037

              
	
                M-6

              	
                3

              	
                    $5,505,000.00

              	
                (9)

              	
                April
                  25, 2037

              
	
                M-7

              	
                3

              	
                    $5,327,000.00

              	
                (10)

              	
                April
                  25, 2037

              
	
                M-8

              	
                3

              	
                    $3,729,000.00

              	
                (11)

              	
                April
                  25, 2037

              
	
                M-9

              	
                3

              	
                    $4,084,000.00

              	
                (12)

              	
                April
                  25, 2037

              
	
                B-1

              	
                C

              	
                    $3,552,000.00

              	
                (13)

              	
                April
                  25, 2037

              
	
                CE-1(14)

              	
                A

              	
                (15)

              	
                (14)

              	
                N/A

              
	
                CE-2

              	
                D

              	
                (16)

              	
                (16)

              	
                N/A

              
	
                P(17)

              	
                B

              	
                $100.00(17)

              	
                N/A

              	
                N/A

              
	
                R

              	
                1,
                  2, 3(18)

              	
                N/A

              	
                N/A

              	
                N/A

              
	
                R-X

              	
                A,
                  B, C, D(19)

              	
                N/A

              	
                N/A

              	
                N/A

              
	
                Total

              	
                $345,566,100(20)

              	 	 

      

    

    ________________

    

    
      	
              (1)

            	
              Interest
                will accrue on the Class A-1 Certificates at a rate equal to the
                lesser of: (i) the Class A-1 Pass-Through Rate and (ii) the Rate
                Cap for such Distribution Date.

            

    

    
      	
              (2)

            	
              Interest
                will accrue on the Class A-2 Certificates at a rate equal to the
                lesser
                of: (i) the Class A-2 Pass-Through Rate and (ii) the Rate Cap
                for such Distribution Date.

            

    

    
      	
              (3)

            	
              Interest
                will accrue on the Class A-3 Certificates at a rate equal to the
                lesser
                of: (i) the Class A-3 Pass-Through Rate and (ii) the Rate Cap
                for such Distribution Date.

            

    

    
      	
              (4)

            	
              Interest
                will accrue on the Class M-1 Certificates at a rate equal to the
                lesser of: (i) the Class M-1 Pass-Through Rate and (ii) the
                Rate Cap for such Distribution
                Date.

            

    

    
      	
              (5)

            	
              Interest
                will accrue on the Class M-2 Certificates at a rate equal to the
                lesser of: (i) the Class M-2 Pass-Through Rate and (ii) the
                Rate Cap for such Distribution
                Date.

            

    

    
      	
              (6)

            	
              Interest
                will accrue on the Class M-3 Certificates at a rate equal to the
                lesser of: (i) the Class M-3 Pass-Through Rate and (ii) the
                Rate Cap for such Distribution
                Date.

            

    

    
      	
              (7)

            	
              Interest
                will accrue on the Class M-4 Certificates at a rate equal to the
                lesser of: (i) the Class M-4 Pass-Through Rate and (ii) the
                Rate Cap for such Distribution
                Date.

            

    

    
      	
              (8)

            	
              Interest
                will accrue on the Class M-5 Certificates at a rate equal to the
                lesser of: (i) the Class M-5 Pass-Through Rate and (ii) the
                Rate Cap for such Distribution
                Date.

            

    

    
      	
              (9)

            	
              Interest
                will accrue on the Class M-6 Certificates at a rate equal to the
                lesser of: (i) the Class M-6 Pass-Through Rate and (ii) the
                Rate Cap for such Distribution
                Date.

            

    

    
      	
              (10)

            	
              Interest
                will accrue on the Class M-7 Certificates at a rate equal to the
                lesser of: (i) the Class M-7 Pass-Through Rate and (ii) the
                Rate Cap for such Distribution
                Date.

            

    

    
      	
              (11)

            	
              Interest
                will accrue on the Class M-8 Certificates at a rate equal to the
                lesser of: (i) the Class M-8 Pass-Through Rate and (ii) the
                Rate Cap for such Distribution
                Date.

            

    

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    
      	
              (12)

            	
              Interest
                will accrue on the Class M-9 Certificates at a rate equal to the
                lesser of: (i) the Class M-9 Pass-Through Rate and (ii) the
                Rate Cap for such Distribution
                Date.

            

    

    
      	
              (13)

            	
              Interest
                will accrue on the Class B-1 Certificates at a rate equal to the
                lesser
                of: (i) the Class B-1 Pass-Through Rate and (ii) the Rate
                Cap for such Distribution Date.

            

    

    
      	
              (14)

            	
              The
                Class CE-1 Certificates represent the beneficial ownership of the
                Class
                CE-1 Interest. REMIC 3 will issue the REMIC 3 Class CE-1 Interest,
                which
                will be an asset of REMIC A. REMIC A will issue the REMIC A Class
                CE
                Interest. The REMIC 3 Class CE-1 Interest and the REMIC A Class CE-1
                Interest will have a principal balance equal to the Class CE-1
                Uncertificated Principal Balance but will not bear interest on that
                balance. The REMIC 3 Class CE-1 Interest and the REMIC A Class CE-1
                Interest will bear interest on the Notional Amount therefor at the
                Pass
                Through Rate therefor. The Class CE-1 Certificates will represent
                the
                rights as indicated herein.

            

    

    
      	
              (15)

            	
              Solely
                for federal income tax purposes, the Class CE-1 Certificates will
                have an
                Original Class Certificate Principal Balance equal to the Initial
                Overcollateralization Amount. The Class CE-1 Certificates will bear
                interest on their Notional Amount.

            

    

    
      	
              (16)

            	
              The
                Class CE-2 Certificates represent the beneficial ownership of the
                Class
                CE-2 Interest. REMIC 3 will issue the REMIC 3 Class CE-2 Interest,
                which
                will be an asset of REMIC D. REMIC D will issue the REMIC D Class
                CE-2
                Interest.

            

    

    
      	
              (17)

            	
              The
                Class P Certificates represent the beneficial ownership of the Class
                P
                Interest. REMIC 3 will issue the REMIC 3 Class P Interest, which
                will be
                an asset of REMIC B. REMIC B will issue the Class P Interest. The
                Class P
                Certificates are also entitled to any amounts paid by the Servicer
                in
                respect of improperly waived Prepayment Penalties pursuant to Section
                3.01.

            

    

    
      	
              (18)

            	
              The
                Class R Certificate will represent beneficial ownership of the Class
                R-1
                Interest, the Class R-2 Interest and the Class R-3
                Interest.

            

    

    
      	
              (19)

            	
              The
                Class R-X Certificate will represent beneficial ownership of the
                Class R-A
                Interest, the Class R-B Interest, the Class R-C Interest and the
                Class R-D
                Interest.

            

    

    
      	
              (20)

            	
              Exclusive
                of the Class CE Notional
                Amount.

            

    

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    ARTICLE
      I

    

    DEFINITIONS

    

    Section
      1.01. Defined
      Terms.

    

    Whenever
      used in this Agreement or in the Preliminary Statement, the following words
      and
      phrases, unless the context otherwise requires, shall have the meanings
      specified in this Article. Unless otherwise specified, interest on the Floating
      Rate Certificates will be calculated on the basis of the actual number of days
      in the related Interest Accrual Period and a 360-day year. Interest on the
      Fixed-Rate Certificates will be calculated on the basis of a 360-day year
      consisting of twelve 30-day months.

    

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

    

    40-Year
      Trigger Event:
      With
      respect to any Distribution Date beginning with the 241st
      Distribution Date or any Distribution Date thereafter, if (i) the aggregate
      Principal Balance of the Mortgage Loans with 40-year original terms to maturity
      as of the last day of the related Collection Period after giving effect to
      principal prepayments in the related Prepayment Period, exceeds (ii) the
      Overcollateralization Amount for such Distribution Date (after giving effect
      to
      all principal distributions on such Distribution Date other than principal
      distributions resulting from this event).

    

    60+
      Day Delinquent Loan:
      Each
      Mortgage Loan with respect to which any portion of a Monthly Payment is, as
      of
      the last day of the prior Collection Period, two months or more past due, each
      Mortgage Loan in foreclosure, all REO Property and each Mortgage Loan for which
      the Mortgagor has filed for bankruptcy after the Closing Date.

    

    Account:
      Any of
      the Collection Account, the Distribution Account, the Escrow Account, the Swap
      Account, the Cap Account and the Cap Carryover Reserve Account.

    

    Accrued
      Certificate Interest:
      With
      respect to each Distribution Date and Class of Certificates, an amount equal
      to
      the interest accrued at the applicable rate set forth or described for such
      Class in the table in the Preliminary Statement during the related Interest
      Accrual Period on the Certificate Principal Balance of such Class of
      Certificates, reduced by such Class’s Interest Percentage of Relief Act Interest
      Shortfalls for such Distribution Date.

    

    Additional
      Form 10-D Disclosure:
      As
      defined in Section 3.29(b) hereof.

    

    Additional
      Form 10-K Disclosure:
      As
      defined in Section 3.29(b) hereof.

    

    Adjustable-Rate
      Mortgage Loan:
      A
      Mortgage Loan which has a rate at which interest accrues that adjusts based
      on
      the applicable Index plus a related Gross Margin, as set forth and subject
      to
      the limitations in the related Mortgage Note.

    

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    Adjustment
      Date:
      With
      respect to each Adjustable-Rate Mortgage Loan, each adjustment date, on which
      the Mortgage Interest 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.

    

    Administrative
      Fee:
      The sum
      of (i) the Trustee Fee (ii) the Servicing Fee and (ii) the Excess
      Servicing Fee.

    

    Administrative
      Fee Rate:
      The sum
      of (i) the Trustee Fee Rate, (ii) the Servicing Fee Rate and (iii) the
      Excess Servicing Fee Rate.

    

    Advance:
      As to
      any Mortgage Loan or REO Property, any advance made by the Servicer in respect
      of any Distribution Date pursuant to Section 4.07.

    

    Advance
      Facility:
      As
      defined in Section 6.05(a) hereof.

    

    Advance
      Facility Notice:
      As
      defined in Section 6.05(b) hereof.

    

    Advance
      Financing Person:
      As
      defined in Section 6.05(a) hereof.

    

    Advance
      Reimbursement Amounts:
      As
      defined in Section 6.05(b) hereof.

    

    Adverse
      REMIC Event:
      As
      defined in Section 9.01(f) hereof.

    

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

    

    Aggregate
      Overcollateralization Release Amount:
      With
      respect to any Distribution Date, the lesser of (i) the Principal Remittance
      Amount and (ii) the Overcollateralization Release Amount.

    

    Agreement:
      This
      Pooling and Servicing Agreement and all amendments and supplements
      hereto.

    

    Applicable
      Regulations:
      As to
      any Mortgage Loan, all federal, state and local laws, statutes, rules and
      regulations applicable thereto.

    

    Applied
      Realized Loss Amount:
      With
      respect to each Distribution Date, the excess, if any, of (a) the aggregate
      of the Certificate Principal Balances of the Certificates (after giving effect
      to the distribution of the Principal Distribution Amount on such Distribution
      Date and any increase of any Certificate Principal Balance as a result of
      Subsequent Recoveries) over (b) the Pool Balance as of the end of the
      related Collection Period, after giving effect to principal prepayments in
      the
      related Prepayment Period.

    

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    Assignment:
      An
      assignment of Mortgage, notice of transfer or equivalent instrument, in
      recordable form, which is sufficient under the laws of the jurisdiction wherein
      the related Mortgaged Property is located to reflect or record the sale of
      the
      Mortgage.

    

    Assumed
      Final Maturity Date:
      As to
      each Class of Certificates, the date set forth as such in the Preliminary
      Statement.

    

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

    

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

    

    Bankruptcy
      Code:
      Title 11 of the United States Code, as amended.

    

    Book-Entry
      Certificates:
      Any of
      the Certificates that shall be registered in the name of the Depository or
      its
      nominee, the ownership of which is reflected on the books of the Depository
      or
      on the books of a Person maintaining an account with the Depository (directly,
      as a “Depository Participant,” or indirectly, as an indirect participant in
      accordance with the rules of the Depository and as described in
      Section 5.02 hereof). On the Closing Date, the Offered Certificates and the
      Class B-1 Certificates shall be Book-Entry Certificates.

    

    Business
      Day:
      Any day
      other than a Saturday, a Sunday or a day on which banking institutions in the
      State of Delaware, the State of New York, the State of Texas, the State of
      Illinois 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.

    

    Cap
      Account:
      As
      defined in Section 4.09.

    

    Cap
      Agreement:
      The
      interest rate cap agreement, dated May 31, 2007, between the Cap Provider and
      the Supplemental Interest Trust Trustee, a copy of which is attached hereto
      as
Exhibit
      O-1.

    

    Cap
      Carryover Amount:
      If on
      any Distribution Date the Accrued Certificate Interest for any Certificate
      is
      based on the Rate Cap, the excess of (i) the amount of interest such Certificate
      would have been entitled to receive on such Distribution Date if the related
      Certificate Interest Rate had not been limited by the Rate Cap, up to but not
      exceeding the related Maximum Rate Cap, over (ii) the amount of interest such
      Certificate received on such Distribution Date based on the Rate Cap, together
      with the unpaid portion of any such excess from prior Distribution Dates (and
      interest accrued thereon at the then-applicable Certificate Interest Rate on
      such Certificate without regard to the Rate Cap but subject to the Maximum
      Rate
      Cap).

    

    Cap
      Carryover Reserve Account:
      The
      trust account created and maintained by the Trustee pursuant to Section 3.04(f)
      which shall be entitled “Cap Carryover Reserve Account, LaSalle Bank National
      Association, as Trustee, in trust for registered Holders of C-BASS Mortgage
      Loan
      Asset-Backed Certificates, Series 2007-CB5” and which must be an Eligible
      Account. Amounts on deposit in the Cap Carryover Reserve Account shall not
      be
      invested. The Cap Carryover Reserve Account shall not be an asset of any REMIC
      formed under this Agreement.

    

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    Cap
      Payment:
      With
      respect to the Cap Agreement and for any Distribution Date, the amount, if
      any,
      required to be paid by the Cap Provider one Business Day prior to such
      Distribution Date under the Cap Agreement.

    

    Cap
      Provider:
      JPMorgan Chase Bank, N.A.

    

    Certificate:
      Any
      Offered Certificate, Class B-1 Certificate, Class CE-1 Certificate, Class CE-2
      Certificate, Class P Certificate or Residual Certificate.

    

    Certificate
      Custodian:
      Initially, LaSalle Bank National Association; thereafter any other Certificate
      Custodian acceptable to the Depository and selected by the Trustee.

    

    Certificate
      Interest Rate:
      As to
      any Class of Certificates other than the Class CE-1, Class CE-2, Class P, Class
      R and Class R-X Certificates or the Class Swap-IO Interest and any Distribution
      Date, the lesser of (i) the Pass-Through Rate for such Class and (ii) the Rate
      Cap. With respect to the Class CE-1 Certificates, Class CE-2 Certificates and
      Class SWAP-IO Interest and each Distribution Date, the related Pass-Through
      Rate. The Class P, Class R and Class R-X Certificates do not have a Certificate
      Interest Rate.

    

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

    

    Certificate
      Principal Balance:
      With
      respect to any Class of Certificates (other than the Class CE or Residual
      Certificates or the Class Swap-IO Interest) and any Distribution Date, the
      Original Class Certificate Principal Balance (a) reduced by the sum of
      (i) all amounts actually distributed in respect of principal of such Class
      on all prior Distribution Dates and (ii) Applied Realized Loss Amounts
      allocated thereto for previous Distribution Dates and (b) increased by any
      Subsequent Recoveries allocated to such Class for previous Distribution Dates.
      Other than as described below, the Class CE and Residual Certificates do not
      have a Certificate Principal Balance. With respect to any Certificate (other
      than a Class CE or Residual Certificate or the Class Swap-IO Interest) of a
      Class and any Distribution Date, the portion of the Certificate Principal
      Balance of such Class represented by such Certificate equal to the product
      of
      the Percentage Interest evidenced by such Certificate and the Certificate
      Principal Balance of such Class. With respect to any Class of REMIC 3 Regular
      Interests (other than the Class SWAP-IO Interest) and any Distribution Date,
      the
      Certificate Principal Balances of the corresponding Class of
      Certificates.

    

    Certificate
      Register
      and
Certificate
      Registrar:
      The
      register maintained and registrar appointed pursuant to Section 5.02
      hereof.

    

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

    

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

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

    

    Class A-1
      Certificate Margin:
      For
      each Distribution Date (i) on or prior to the Optional Termination Date,
      0.060% per annum, and (ii) following the Optional Termination Date, 0.120%
      per annum.

    

    Class A-1
      Pass-Through Rate:
      For
      each Distribution Date, LIBOR as of the related LIBOR Determination Date plus
      the Class A-1 Certificate Margin.

    

    Class A-2
      Certificate Margin:
      For
      each Distribution Date (i) on or prior to the Optional Termination Date,
      0.170% per annum, and (ii) following the Optional Termination Date, 0.340%
      per annum.

    

    Class A-2
      Pass-Through Rate:
      For
      each Distribution Date, LIBOR as of the related LIBOR Determination Date plus
      the Class A-2 Certificate Margin.

    

    Class A-3
      Certificate Margin:
      For
      each Distribution Date (i) on or prior to the Optional Termination Date,
      0.250% per annum, and (ii) following the Optional Termination Date, 0.500%
      per annum.

    

    Class A-3
      Pass-Through Rate:
      For
      each Distribution Date, LIBOR as of the related LIBOR Determination Date plus
      the Class A-3 Certificate Margin.

    

    Class A
      Certificate:
      Any one
      of the Certificates with an “A” designated on the face thereof substantially in
      the form annexed hereto as Exhibits A-1,
      A-2 and A-3
      executed
      by the Trustee on behalf of the Trust and authenticated and delivered by the
      Certificate Registrar, representing the right to distributions as set forth
      herein and therein. Each Class A Certificate will represent (i) the
      corresponding REMIC 3 Regular Interest for purposes of the REMIC Provisions,
      (ii) the right to receive the Cap Carryover Amounts and (iii) the obligation
      to
      pay the Class SWAP-IO Distribution Amount.

    

    Class A
      Certificateholders:
      Collectively, the Holders of the Class A Certificates.

    

    Class B-1
      Certificate:
      The
      Certificates with a “B-1” designated on the face thereof substantially in the
      form annexed hereto as Exhibit B-10,
      executed by the Trustee on behalf of the Trust and authenticated and delivered
      by the Certificate Registrar, representing the right to distributions as set
      forth herein and therein. Each Class B-1 Certificate will represent (i) the
      corresponding REMIC C Regular Interest for purposes of the REMIC Provisions,
      (ii) the right to receive the Cap Carryover Amounts and (iii) the obligation
      to
      pay the Class SWAP-IO Distribution Amount.

    

    Class B-1
      Certificateholders:
      Collectively, the Holders of the Class B-1 Certificates.

    

    Class B-1
      Pass-Through Rate:
      For
      each Distribution Date, (i) on or prior to the Optional Termination Date, 7.000%
      per annum, and (ii) following the Optional Termination Date, 7.500% per
      annum.

    

    
      
         

      

      
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    Class B-1
      Principal Distribution Amount:
      As of
      any Distribution Date on or after the Stepdown Date and as long as a Trigger
      Event is not in effect, the excess of (x) the sum of (i) the sum of the
      Certificate Principal Balances of the Class A Certificates and the Class M
      Certificates (after taking into account the payment of the Senior Principal
      Distribution Amount and 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 Principal Distribution
      Amounts on such Distribution Date) and (ii) the Certificate Principal Balance
      of
      the Class B-1 Certificates immediately prior to such Distribution Date over
      (y)
      the lesser of (a) the product of (i) 94.60% and (ii) the Pool Balance as of
      the
      last day of the related Collection Period after giving effect to principal
      prepayments in the related Prepayment Period and (b) the amount by which the
      Pool Balance as of the last day of the related Collection Period after giving
      effect to principal prepayments in the related Prepayment Period exceeds the
      Overcollateralization Floor.

    

    Class B-1
      Realized Loss Amortization Amount:
      As to
      the Class B-1 Certificates and as of any Distribution Date, the lesser of
      (x) the Unpaid Realized Loss Amount for the Class B-1 Certificates as
      of such Distribution Date and (y) the excess of (i) the Monthly Excess
      Cashflow Amount over (ii) the sum of the amounts described in Section
      4.02(b)(i) through (xxxi) hereof, in each case for such Distribution
      Date.

    

    Class
      CE Certificate:
      Any one
      of the Certificates with a “CE” designated on the face thereof substantially in
      the form annexed hereto as Exhibit C-1
      and Exhibit C-2,
      executed by the Trustee on behalf of the Trust and authenticated and delivered
      by the Certificate Registrar, representing the right to distributions as set
      forth herein and therein. (A) The Class CE-1 Certificates represent (i) the
      corresponding REMIC A Regular Interest for purposes of the REMIC Provisions,
      (ii) the obligation to pay Cap Carryover Amounts, Swap Termination Payments
      and
      Class SWAP-IO Distribution Amounts and (iii) the right to receive the Class
      SWAP-IO Distribution Amount and amounts from the Cap Carryover Reserve Account,
      the Swap Account and the Cap Account and (B) the Class CE-2 Certificates
      represent the corresponding REMIC D Regular Interest.

    

    Class
      CE-1 Distributable Amount:
      With
      respect to any Distribution Date, the sum of (i) the interest accrued on such
      Class CE-1 Certificate at its Pass-Through Rate calculated on its Notional
      Amount less the amount (without duplication) of Cap Carryover Amounts paid
      pursuant to Section 4.02(b)(xxxiii), any Defaulted Swap Termination Payments
      paid pursuant to Section 4.02(b)(xxxiv), and any amounts paid pursuant to
      Section 4.02(b)(xxxv), (ii) any remaining Aggregate Overcollateralization
      Release Amounts and (iii) the amounts remaining in the Cap Carryover Reserve
      Account after the distributions in Section
      3.04(f),
      and the
      Supplemental Interest Trust in respect of the Swap Account and Cap Account
      after
      distributions in Section
      4.09(i) through (viii).

    

    Class
      CE Uncertificated Principal Balance:
      As of
      any date of determination, the Initial Overcollateralization Amount minus the
      sum of (i) any Realized Losses allocated thereto and (ii) any amounts
      distributed (or deemed distributed) to the Class CE-1 Certificates with respect
      thereto.

    

    Class M
      Certificate:
      Any one
      of the Certificates with a “M” designated on the face thereof substantially in
      the form annexed hereto as Exhibits B-1,
      B-2, B-3, B-4, B-5, B-6, B-7, B-8 and B-9,
      executed by the Trustee on behalf of the Trust and authenticated and delivered
      by the Certificate Registrar, representing the right to distributions as set
      forth herein and therein. Each Class M Certificate will represent (i) the
      corresponding REMIC 3 Regular Interest for purposes of the REMIC Provisions,
      (ii) the right to receive the Cap Carryover Amounts and (iii) the obligation
      to
      pay the Class SWAP-IO Distribution Amount.

    

    
      
         

      

      
        16

        
          

        

      

      
         

      

    

    Class M
      Certificateholders:
      Collectively, the Holders of the Class M Certificates.

    

    Class M-1
      Certificate Margin:
      For
      each Distribution Date (i) on or prior to the Optional Termination Date,
      0.240% per annum, and (ii) following the Optional Termination Date, 0.360%
      per annum.

    

    Class M-1
      Pass-Through Rate:
      For
      each Distribution Date, LIBOR as of the related LIBOR Determination Date plus
      the Class M-1 Certificate Margin.

    

    Class
      M-1 Principal Distribution Amount:
      As of
      any Distribution Date on or after the Stepdown Date and as long as a Trigger
      Event is not in effect, the excess of (x) the sum of (i) the sum of the
      Certificate Principal Balances of the Class A Certificates (after taking into
      account the payment of the Senior Principal Distribution Amount on such
      Distribution Date) and (ii) the Certificate Principal Balance of the Class
      M-1
      Certificates immediately prior to such Distribution Date over (y) the lesser
      of
      (a) the product of (i) 64.50% and (ii) the Pool Balance as of the last day
      of
      the related Collection Period after giving effect to principal prepayments
      in
      the related Prepayment Period and (b) the amount by which the Pool Balance
      as of
      the last day of the related Collection Period after giving effect to principal
      prepayments in the related Prepayment Period exceeds the Overcollateralization
      Floor.

    

    Class M-1
      Realized Loss Amortization Amount:
      As to
      the Class M-1 Certificates and as of any Distribution Date, the lesser of
      (x) the Unpaid Realized Loss Amount for the Class M-1 Certificates as
      of such Distribution Date and (y) the excess of (i) the Monthly Excess
      Cashflow Amount over (ii) the sum of the amounts described in
      Section 4.02(b)(i) through (iv) hereof, in each case for such Distribution
      Date.

    

    Class M-2
      Certificate Margin:
      For
      each Distribution Date (i) on or prior to the Optional Termination Date,
      0.250% per annum, and (ii) following the Optional Termination Date, 0.375%
      per annum.

    

    Class M-2
      Pass-Through Rate:
      For
      each Distribution Date, LIBOR as of the related LIBOR Determination Date plus
      the Class M-2 Certificate Margin.

    

    Class M-2
      Principal Distribution Amount:
      As of
      any Distribution Date on or after the Stepdown Date and as long as a Trigger
      Event is not in effect, the excess of (x) the sum of (i) the sum of the
      Certificate Principal Balances of the Class A Certificates and the Class M-1
      Certificates (after taking into account the payment of the Senior Principal
      Distribution Amount and the Class M-1 Principal Distribution Amount on such
      Distribution Date) and (ii) the Certificate Principal Balance of the Class
      M-2
      Certificates immediately prior to such Distribution Date over (y) the lesser
      of
      (a) the product of (i) 71.40% and (ii) the Pool Balance as of the last day
      of
      the related Collection Period after giving effect to principal prepayments
      in
      the related Prepayment Period and (b) the amount by which the Pool Balance
      as of
      the last day of the related Collection Period after giving effect to principal
      prepayments in the related Prepayment Period exceeds the Overcollateralization
      Floor.

    

    
      
         

      

      
        17

        
          

        

      

      
         

      

    

    Class M-2
      Realized Loss Amortization Amount:
      As to
      the Class M-2 Certificates and as of any Distribution Date, the lesser of
      (x) the Unpaid Realized Loss Amount for the Class M-2 Certificates as
      of such Distribution Date and (y) the excess of (i) the Monthly Excess
      Cashflow Amount over (ii) the sum of the amounts described in
      Section 4.02(b)(i) through (vii) hereof, in each case for such Distribution
      Date.

    

    Class M-3
      Certificate Margin:
      For
      each Distribution Date (i) on or prior to the Optional Termination Date,
      0.280% per annum, and (ii) following the Optional Termination Date, 0.420%
      per annum.

    

    Class M-3
      Pass-Through Rate:
      For
      each Distribution Date, LIBOR as of the related LIBOR Determination Date plus
      the Class M-3 Certificate Margin.

    

    Class M-3
      Principal Distribution Amount:
      As of
      any Distribution Date on or after the Stepdown Date and as long as a Trigger
      Event is not in effect, the excess of (x) the sum of (i) the sum of the
      Certificate Principal Balances of the Class A Certificates and Class M-1 and
      Class M-2 Certificates (after taking into account the payment of the Senior
      Principal Distribution Amount and the Class M-1 and Class M-2 Principal
      Distribution Amounts on such Distribution Date) and (ii) the Certificate
      Principal Balance of the Class M-3 Certificates immediately prior to such
      Distribution Date over (y) the lesser of (a) the product of (i) 75.30% and
      (ii)
      the Pool Balance as of the last day of the related Collection Period after
      giving effect to principal prepayments in the related Prepayment Period and
      (b)
      the amount by which the Pool Balance as of the last day of the related
      Collection Period after giving effect to principal prepayments in the related
      Prepayment Period exceeds the Overcollateralization Floor.

    

    Class M-3
      Realized Loss Amortization Amount:
      As to
      the Class M-3 Certificates and as of any Distribution Date, the lesser of
      (x) the Unpaid Realized Loss Amount for the Class M-3 Certificates as
      of such Distribution Date and (y) the excess of (i) the Monthly Excess
      Cashflow Amount over (ii) the sum of the amounts described in
      Section 4.02(b)(i) through (x) hereof, in each case for such Distribution
      Date.

    

    Class M-4
      Certificate Margin:
      For
      each Distribution Date (i) on or prior to the Optional Termination Date,
      0.400% per annum, and (ii) following the Optional Termination Date, 0.600%
      per annum.

    

    Class M-4
      Pass-Through Rate:
      For
      each Distribution Date, LIBOR as of the related LIBOR Determination Date plus
      the Class M-4 Certificate Margin.

    

    Class M-4
      Principal Distribution Amount:
      As of
      any Distribution Date on or after the Stepdown Date and as long as a Trigger
      Event is not in effect, the excess of (x) the sum of (i) the sum of the
      Certificate Principal Balances of the Class A Certificates and the Class M-1,
      Class M-2 and Class M-3 Certificates (after taking into account the payment
      of
      the Senior Principal Distribution Amount and the Class M-1, Class M-2 and Class
      M-3 Principal Distribution Amounts on such Distribution Date) and (ii) the
      Certificate Principal Balance of the Class M-4 Certificates immediately prior
      to
      such Distribution Date over (y) the lesser of (a) the product of (i) 78.80%
      and
      (ii) the Pool Balance as of the last day of the related Collection Period after
      giving effect to principal prepayments in the related Prepayment Period and
      (b)
      the amount by which the Pool Balance as of the last day of the related
      Collection Period after giving effect to principal prepayments in the related
      Prepayment Period exceeds the Overcollateralization Floor.

    

    
      
         

      

      
        18

        
          

        

      

      
         

      

    

    Class M-4
      Realized Loss Amortization Amount:
      As to
      the Class M-4 Certificates and as of any Distribution Date, the lesser of
      (x) the Unpaid Realized Loss Amount for the Class M-4 Certificates as
      of such Distribution Date and (y) the excess of (i) the Monthly Excess
      Cashflow Amount over (ii) the sum of the amounts described in
      Section 4.02(b)(i) through (xiii) hereof, in each case for such
      Distribution Date.

    

    Class M-5
      Certificate Margin:
      For
      each Distribution Date (i) on or prior to the Optional Termination Date,
      0.450% per annum, and (ii) following the Optional Termination Date, 0.675%
      per annum.

    

    Class M-5
      Pass-Through Rate:
      For
      each Distribution Date, LIBOR as of the related LIBOR Determination Date plus
      the Class M-5 Certificate Margin.

    

    Class M-5
      Principal Distribution Amount:
      As of
      any Distribution Date on or after the Stepdown Date and as long as a Trigger
      Event is not in effect, the excess of (x) the sum of (i) the sum of the
      Certificate Principal Balances of the Class A Certificates and the Class M-1,
      Class M-2, Class M-3 and Class M-4 Certificates (after taking into account
      the
      payment of the Senior Principal Distribution Amount and the Class M-1, Class
      M-2, Class M-3 and Class M-4 Principal Distribution Amounts on such Distribution
      Date) and (ii) the Certificate Principal Balance of the Class M-5 Certificates
      immediately prior to such Distribution Date over (y) the lesser of (a) the
      product of (i) 82.10% and (ii) the Pool Balance as of the last day of the
      related Collection Period after giving effect to principal prepayments in the
      related Prepayment Period and (b) the amount by which the Pool Balance as of
      the
      last day of the related Collection Period after giving effect to principal
      prepayments in the related Prepayment Period exceeds the Overcollateralization
      Floor.

    

    Class M-5
      Realized Loss Amortization Amount:
      As to
      the Class M-5 Certificates and as of any Distribution Date, the lesser of
      (x) the Unpaid Realized Loss Amount for the Class M-5 Certificates as
      of such Distribution Date and (y) the excess of (i) the Monthly Excess
      Cashflow Amount over (ii) the sum of the amounts described in
      Section 4.02(b)(i) through (xvi) hereof, in each case for such Distribution
      Date.

    

    Class M-6
      Certificate Margin:
      For
      each Distribution Date (i) on or prior to the Optional Termination Date,
      0.670% per annum, and (ii) following the Optional Termination Date, 1.005%
      per annum.

    

    Class M-6
      Pass-Through Rate:
      For
      each Distribution Date, LIBOR as of the related LIBOR Determination Date plus
      the Class M-6 Certificate Margin.

    

    Class M-6
      Principal Distribution Amount:
      As of
      any Distribution Date on or after the Stepdown Date and as long as a Trigger
      Event is not in effect, the excess of (x) the sum of (i) the sum of the
      Certificate Principal Balances of the Class A Certificates and the Class M-1,
      Class M-2, Class M-3, Class M-4 and Class M-5 Certificates (after taking into
      account the payment of the Senior Principal Distribution Amount and the Class
      M-1, Class M-2, Class M-3, Class M-4 and Class M-5 Principal Distribution
      Amounts on such Distribution Date) and (ii) the Certificate Principal Balance
      of
      the Class M-6 Certificates immediately prior to such Distribution Date over
      (y)
      the lesser of (a) the product of (i) 85.20% and (ii) the Pool Balance as of
      the
      last day of the related Collection Period after giving effect to principal
      prepayments in the related Prepayment Period and (b) the amount by which the
      Pool Balance as of the last day of the related Collection Period after giving
      effect to principal prepayments in the related Prepayment Period exceeds the
      Overcollateralization Floor.

    

    
      
         

      

      
        19

        
          

        

      

      
         

      

    

    Class M-6
      Realized Loss Amortization Amount:
      As to
      the Class M-6 Certificates and as of any Distribution Date, the lesser of
      (x) the Unpaid Realized Loss Amount for the Class M-6 Certificates as
      of such Distribution Date and (y) the excess of (i) the Monthly Excess
      Cashflow Amount over (ii) the sum of the amounts described in
      Section 4.02(b)(i) through (xix) hereof, in each case for such Distribution
      Date.

    

    Class M-7
      Certificate Margin:
      For
      each Distribution Date (i) on or prior to the Optional Termination Date,
      1.150% per annum, and (ii) following the Optional Termination Date, 1.725%
      per annum.

    

    Class M-7
      Pass-Through Rate:
      For
      each Distribution Date, LIBOR as of the related LIBOR Determination Date plus
      the Class M-7 Certificate Margin.

    

    Class M-7
      Principal Distribution Amount:
      As of
      any Distribution Date on or after the Stepdown Date and as long as a Trigger
      Event is not in effect, the excess of (x) the sum of (i) the sum of the
      Certificate Principal Balances of the Class A Certificates and the Class M-1,
      Class M-2, Class M-3, Class M-4, Class M-5 and Class M-6 Certificates (after
      taking into account the payment of the Senior Principal Distribution Amount
      and
      the Class M-1, Class M-2, Class M-3, Class M-4, Class M-5 and Class M-6
      Principal Distribution Amounts on such Distribution Date) and (ii) the
      Certificate Principal Balance of the Class M-7 Certificates immediately prior
      to
      such Distribution Date over (y) the lesser of (a) the product of (i) 88.20%
      and
      (ii) the Pool Balance as of the last day of the related Collection Period after
      giving effect to principal prepayments in the related Prepayment Period and
      (b)
      the amount by which the Pool Balance as of the last day of the related
      Collection Period after giving effect to principal prepayments in the related
      Prepayment Period exceeds the Overcollateralization Floor.

    

    Class M-7
      Realized Loss Amortization Amount:
      As to
      the Class M-7 Certificates and as of any Distribution Date, the lesser of
      (x) the Unpaid Realized Loss Amount for the Class M-7 Certificates as
      of such Distribution Date and (y) the excess of (i) the Monthly Excess
      Cashflow Amount over (ii) the sum of the amounts described in
      Section 4.02(b)(i) through (xxii) hereof, in each case for such
      Distribution Date.

    

    Class M-8
      Certificate Margin:
      For
      each Distribution Date (i) on or prior to the Optional Termination Date,
      1.700% per annum, and (ii) following the Optional Termination Date, 2.550%
      per annum.

    

    Class M-8
      Pass-Through Rate:
      For
      each Distribution Date, LIBOR as of the related LIBOR Determination Date plus
      the Class M-8 Certificate Margin.

    

    
      
         

      

      
        20

        
          

        

      

      
         

      

    

    Class M-8
      Principal Distribution Amount:
      As of
      any Distribution Date on or after the Stepdown Date and as long as a Trigger
      Event is not in effect, the excess of (x) the sum of (i) the sum of the
      Certificate Principal Balances of the Class A Certificates and the Class M-1,
      Class M-2, Class M-3, Class M-4, Class M-5, Class M-6 and Class M-7 Certificates
      (after taking into account the payment of the Senior Principal Distribution
      Amount and the Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class
      M-6
      and Class M-7 Principal Distribution Amounts on such Distribution Date) and
      (ii)
      the Certificate Principal Balance of the Class M-8 Certificates immediately
      prior to such Distribution Date over (y) the lesser of (a) the product of (i)
      90.30% and (ii) the Pool Balance as of the last day of the related Collection
      Period after giving effect to principal prepayments in the related Prepayment
      Period and (b) the amount by which the Pool Balance as of the last day of the
      related Collection Period after giving effect to principal prepayments in the
      related Prepayment Period exceeds the Overcollateralization Floor.

    

    Class M-8
      Realized Loss Amortization Amount:
      As to
      the Class M-8 Certificates and as of any Distribution Date, the lesser of
      (x) the Unpaid Realized Loss Amount for the Class M-8 Certificates as
      of such Distribution Date and (y) the excess of (i) the Monthly Excess
      Cashflow Amount over (ii) the sum of the amounts described in
      Section 4.02(b)(i) through (xxv) hereof, in each case for such Distribution
      Date.

    

    Class M-9
      Certificate Margin:
      For
      each Distribution Date (i) on or prior to the Optional Termination Date,
      2.000% per annum, and (ii) following the Optional Termination Date, 3.500%
      per annum.

    

    Class M-9
      Pass-Through Rate:
      For
      each Distribution Date, LIBOR as of the related LIBOR Determination Date plus
      the Class M-9 Certificate Margin.

    

    Class M-9
      Principal Distribution Amount:
      As of
      any Distribution Date on or after the Stepdown Date and as long as a Trigger
      Event is not in effect, the excess of (x) the sum of (i) the sum of the
      Certificate Principal Balances of the Class A Certificates and the Class M-1,
      Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class M-7 and Class
      M-8
      Certificates (after taking into account the payment of the Senior Principal
      Distribution Amount and the Class M-1, Class M-2, Class M-3, Class M-4, Class
      M-5, Class M-6, Class M-7 and Class M-8 Principal Distribution Amounts on such
      Distribution Date) and (ii) the Certificate Principal Balance of the Class
      M-9
      Certificates immediately prior to such Distribution Date over (y) the lesser
      of
      (a) the product of (i) 92.60% and (ii) the Pool Balance as of the last day
      of
      the related Collection Period after giving effect to principal prepayments
      in
      the related Prepayment Period and (b) the amount by which the Pool Balance
      as of
      the last day of the related Collection Period after giving effect to principal
      prepayments in the related Prepayment Period exceeds the Overcollateralization
      Floor.

    

    Class M-9
      Realized Loss Amortization Amount:
      As to
      the Class M-9 Certificates and as of any Distribution Date, the lesser of
      (x) the Unpaid Realized Loss Amount for the Class M-9 Certificates as
      of such Distribution Date and (y) the excess of (i) the Monthly Excess
      Cashflow Amount over (ii) the sum of the amounts described in
      Section 4.02(b)(i) through (xxviii) hereof, in each case for such
      Distribution Date.

    

    Class
      P Certificate:
      Any one
      of the Certificates with a “P” designated on the face thereof substantially in
      the form annexed hereto as Exhibit C-3,
      executed by the Trustee on behalf of the Trust and authenticated and delivered
      by the Certificate Registrar, representing the right to distributions as set
      forth herein and therein. The Class P Certificate represents (i) the
      corresponding REMIC B regular interest for purposes of the REMIC Provisions
      and
      (ii) the right to receive amounts paid by the servicer in respect of improperly
      waived Prepayment Penalties pursuant to Section 3.01.

    

    
      
         

      

      
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    Class R
      Certificate:
      The
      Class R Certificate executed by the Trustee on behalf of the Trust, and
      authenticated and delivered by the Certificate Registrar, substantially in
      the
      form annexed hereto as Exhibit C-4
      and
      evidencing the ownership of the Residual Interest in each of REMIC 1, REMIC
      2
      and REMIC 3. The Class R Certificate represents the ownership of the Class
      R-1 Interest, Class R-2 Interest and Class R-3 Interest.

    

    Class
      R-1 Interest:
      The
      uncertificated residual interest in REMIC 1 for purpose of the REMIC
      Provisions.

    

    Class
      R-2 Interest:
      The
      uncertificated residual interest in REMIC 2 for purpose of the REMIC
      Provisions.

    

    Class
      R-3 Interest:
      The
      uncertificated residual interest in REMIC 3 for purposes of the REMIC
      Provisions.

    

    Class
      R-A Interest:
      The
      uncertificated residual interest in REMIC A for purpose of the REMIC
      Provisions.

    

    Class
      R-B Interest:
      The
      uncertificated residual interest in REMIC B for purpose of the REMIC
      Provisions.

    

    Class
      R-C Interest:
      The
      uncertificated residual interest in REMIC C for purpose of the REMIC
      Provisions.

    

    Class
      R-D Interest:
      The
      uncertificated residual interest in REMIC D for purpose of the REMIC
      Provisions.

    

    Class
      R-X Certificate:
      The
      Class R-X Certificate executed by the Trustee on behalf of the Trust, and
      authenticated and delivered by the Certificate Registrar, substantially in
      the
      form annexed hereto as Exhibit C-5
      and
      evidencing the ownership of the Residual Interest in each of REMIC A, REMIC
      B,
      REMIC C and REMIC D. The Class R-X Certificate represents the ownership of
      the
      Class R-A Interest, Class R-B Interest, Class R-C Interest and Class R-D
      Interest.

    

    Class
      SWAP-IO Distribution Amount:
      As
      defined in Section 4.09 hereof. For purposes of clarity, the Class SWAP-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 SWAP-IO Interest on such Distribution Date, all
      as
      further provided in Section 4.09 hereof.

    

    Class
      SWAP-IO Interest:
      An
      uncertificated interest evidencing a REMIC 3 Regular Interest for purposes
      of
      the REMIC Provisions.

    

    
      
         

      

      
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    Closing
      Date:
      May 31,
      2007.

    

    Code:
      The
      Internal Revenue Code of 1986, as it may be amended from time to
      time.

    

    Collection
      Account:
      The
      account or accounts created and maintained by the Servicer pursuant to
      Section 3.04, which shall be entitled “Collection Account, Litton Loan
      Servicing LP, as Servicer in trust for registered Holders of C-BASS 2007-CB5
      Trust, C-BASS Mortgage Loan Asset-Backed Certificates, Series 2007-CB5,” and
      which must be an Eligible Account.

    

    Collection
      Period:
      With
      respect to any Distribution Date, the period from the second day of the calendar
      month preceding the month in which such Distribution Date occurs through the
      first day of the month in which such Distribution Date occurs.

    

    Combined
      Loan-to-Value Ratio:
      As of
      any date and Mortgage Loan, the fraction, expressed as a percentage, the
      numerator of which is the Principal Balance of the Mortgage Loan as of such
      date
      of determination plus the principal balance of any related senior mortgage
      loan,
      if any, at origination of the Mortgage Loan and the denominator of which is
      the
      Value of the related Mortgaged Property.

    

    Commission:
      The
      United States Securities and Exchange Commission.

    

    Compensating
      Interest:
      As
      defined in Section 3.23 hereof.

    

    Condemnation
      Proceeds:
      All
      awards or settlements in respect of a taking of a Mortgaged Property by exercise
      of the power of eminent domain or condemnation.

    

    Corporate
      Trust Office:
      With
      respect to the Trustee, the principal corporate trust office of the Trustee
      at
      which at any particular time its corporate trust business in connection with
      this Agreement shall be administered and Certificates may be presented for
      transfer and exchange and for purpose of surrender for the final distribution
      thereon, which office at the date of the execution of this instrument is located
      at 135
      South LaSalle Street, Suite 1511, Chicago, Illinois 60603, Attention: Global
      Securities and Trust Services — C-BASS 2007-CB5,
      or at
      such other address as the Trustee may designate from time to time by notice
      to
      the Certificateholders, the Depositor, the Servicer and the Seller.

    

    Corresponding
      Classes:
      With
      respect to REMIC 2 and REMIC 3, the following Classes shall be Corresponding
      Classes:

     

    
      	
              Corresponding
                REMIC 2 Classes

            	
              Corresponding
                REMIC 3 Regular Interests

            
	
              LT2A1

            	
              Class
                A-1 Regular Interest

            
	
              LT2A2

            	
              Class
                A-2 Regular Interest

            
	
              LT2A3

            	
              Class
                A-3 Regular Interest

            
	
              LT2M1

            	
              Class
                M-1 Regular Interest

            

    

    

    

    
      
         

      

      
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              LT2M2

            	
              Class
                M-2 Regular Interest

            
	
              LT2M3

            	
              Class
                M-3 Regular Interest

            
	
              LT2M4

            	
              Class
                M-4 Regular Interest

            
	
              LT2M5

            	
              Class
                M-5 Regular Interest

            
	
              LT2M6

            	
              Class
                M-6 Regular Interest

            
	
              LT2M7

            	
              Class
                M-7 Regular Interest

            
	
              LT2M8

            	
              Class
                M-8 Regular Interest

            
	
              LT2M9

            	
              Class
                M-9 Regular Interest

            
	
              LT2B1

            	
              REMIC
                3 Class B-1 Interest

            

    

     

    Custodial
      Agreement:
      The
      Custodial Agreement, dated as of May 1, 2007, among the Trustee, the Servicer
      and the Custodian, as the same may be amended or supplemented pursuant to the
      terms thereof.

    

    Custodian:
      The
      Bank of New York, a New York banking corporation, or any successor custodian
      appointed pursuant to the terms of the Custodial Agreement.

    

    Cut-off
      Date:
      May 1,
      2007.

    

    Cut-off
      Date Principal Balance:
      With
      respect to any Mortgage Loan, the unpaid principal balance thereof as of the
      Cut-off Date after application of funds received or advanced on or before such
      date (or as of the applicable date of substitution with respect to an Eligible
      Substitute Mortgage Loan).

    

    Cut-off
      Date Pool Balance:
      $355,154,811.88.

    

    DBRS:
      DBRS
      and its successors, and if such company shall for any reason no longer perform
      the functions of a securities rating agency, “DBRS” shall be deemed to refer to
      any other “nationally recognized statistical rating organization” as set forth
      on the most current list of such organizations released by the Securities and
      Exchange Commission.

    

    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.

    

    Defaulted
      Swap Termination Payment:
      Any
      Swap Termination Payment required to be paid by the Supplemental Interest Trust
      to the Swap Provider pursuant to the Swap Agreement as a result of an Event
      of
      Default (as defined in the Swap Agreement) with respect to which the Swap
      Provider is the defaulting party or 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).

    

    
      
         

      

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

    

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

    

    Definitive
      Certificates:
      As
      defined in Section 5.02(c) hereof.

    

    Delinquent:
      Any
      Mortgage Loan with respect to which the Monthly Payment and/or any Escrow
      Payment due on a Due Date is not made by the close of business on the next
      scheduled Due Date for such Mortgage Loan.

    

    Depositor:
      Asset
      Backed Funding Corporation, a Delaware corporation, or any successor in
      interest.

    

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

    

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

    

    Determination
      Date:
      With
      respect to any Distribution Date, the 16th day of the calendar month in which
      such Distribution Date occurs or, if such 16th day is not a Business Day, the
      Business Day immediately succeeding such 16th day.

    

    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 the Trust other than through an Independent Contractor;
provided,
      however,
      that
      the Trustee (or the Servicer under this Agreement) shall not be considered
      to
      Directly Operate an REO Property solely because the Trustee (or the
      Servicer under this Agreement) 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
      Non-U.S. Person:
      With
      respect to a Residual Certificate, any (A) non-U.S. Person or agent thereof
      or
      (B) U.S. Person with respect to whom income from a Residual Certificate is
      attributable to a foreign permanent establishment or fixed base, within the
      meaning of an applicable income tax treaty, of such Person or any other U.S.
      Person.

    

    
      
         

      

      
        25

        
          

        

      

      
         

      

    

    Disqualified
      Organization:
      A
“disqualified organization” under Section 860E of the Code, which as of the
      Closing Date is any of: (i) the United States, any state or political
      subdivision thereof, any possession of the United States, any foreign
      government, any international organization, or any agency or instrumentality
      of
      any of the foregoing, (ii) any organization (other than a cooperative
      described in Section 521 of the Code) which 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, (iii) any organization described
      in Section 1381(a)(2)(C) of the Code, or (iv) any other Person so designated
      by
      the Trustee based upon an Opinion of Counsel provided by nationally recognized
      counsel to the Trustee that the holding of an ownership interest in a Residual
      Certificate by such Person may cause the Trust Fund or any Person having an
      ownership interest in any Class of Certificates (other than such Person) to
      incur liability for any federal tax imposed under the Code that would not
      otherwise be imposed but for the transfer of an ownership interest in a Residual
      Certificate to such Person. A corporation will not be treated as an
      instrumentality of the United States or of any state or political subdivision
      thereof if all of its activities are subject to tax and a majority of its board
      of directors is not selected by a governmental unit. The term “United States,”
“state” and “international organization” shall have the meanings set forth in
      Section 7701 of the Code.

    

    Distribution
      Account:
      The
      trust account or accounts created and maintained by the Trustee pursuant to
      Section 3.04(b) which shall be entitled “Distribution Account, LaSalle Bank
      National Association, as Trustee, in trust for the registered Holders of C-BASS
      2007-CB5 Trust, C-BASS Mortgage Loan Asset-Backed Certificates, Series 2007-CB5”
and which must be an Eligible Account.

    

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

    

    Distribution
      Information:
      The items calculated and reported by the Trustee pursuant to Section
      4.06(a)(iii), (iv), (v) and (xvi) through (xxvi) and any other information
      included in the Monthly Statement to certificateholders set forth in Section
      4.06 hereof aggregated and/or calculated by the Trustee from (a) information
      contained in the Remittance Report or (b) other information furnished to the
      Trustee by the Servicer pursuant to Section 4.07.

    

    Downgrade
      Termination Event:
      An event whereby (x) the Swap Provider (or its guarantor) ceases to have short
      term unsecured and/or long term debt ratings at least equal to the levels
      specified in the Swap Agreement, and (y) at least one of the following events
      has not occurred (except to the extent otherwise approved by the Rating
      Agencies): (i) within the time period specified in the Swap Agreement with
      respect to such downgrade, the Swap Provider shall transfer the Swap Agreement,
      in whole, but not in part, to a substitute swap provider that satisfied the
      requirements set forth in the Swap Agreement, subject to the satisfaction of
      the
      rating agency condition or (ii) within the time period specified in the Swap
      Agreement with respect to such downgrade, the Swap Provider shall collateralize
      its exposure to the Issuing Entity pursuant to an ISDA Credit Support Annex,
      subject to the satisfaction of the rating agency condition; provided that such
      ISDA Credit Support Annex shall be made a credit support document for the Swap
      Provider pursuant to an amendment to the Swap Agreement.

    

    
      
         

      

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

    

    Eligible
      Account:
      Any of
      (i) an account or accounts maintained with a federal or state chartered
      depository institution or trust company the short-term unsecured debt
      obligations of which (or, in the case of a depository institution or trust
      company that is the principal subsidiary of a holding company, the short-term
      unsecured debt obligations of such holding company) are rated “A-2” (or the
      equivalent) by each of the Rating Agencies at the time any amounts are held
      on
      deposit therein, (ii) an account or accounts the deposits in which are
      fully insured by the FDIC (to the limits established by such corporation),
      the
      uninsured deposits in which account are otherwise secured such that, as
      evidenced by an Opinion of Counsel delivered to the Trustee and to each Rating
      Agency, the Certificateholders will have a claim with respect to the funds
      in
      such account or a perfected first priority security interest against such
      collateral (which shall be limited to Permitted Investments) securing such
      funds
      that is superior to claims of any other depositors or creditors of the
      depository institution with which such account is maintained, (iii) a trust
      account or accounts maintained with the trust department of a federal or state
      chartered depository institution, national banking association or trust company
      acting in its fiduciary capacity or (iv) an account otherwise acceptable to
      each Rating Agency without reduction or withdrawal of their then current ratings
      of the Certificates as evidenced by a letter from each Rating Agency to the
      Trustee. Eligible Accounts may bear interest.

    

    Eligible
      Substitute Mortgage Loan:
      A
      mortgage loan substituted for a Defective Mortgage Loan pursuant to the terms
      of
      this Agreement which must, on the date of such substitution, (i) have an
      outstanding principal balance, after application of all scheduled payments
      of
      principal and interest due during or prior to the month of substitution, not
      in
      excess of, and not more than 5% less than, the outstanding principal balance
      of
      the Defective Mortgage Loan as of the Due Date in the calendar month during
      which the substitution occurs, (ii) have a Mortgage Interest Rate, with respect
      to a Fixed-Rate Mortgage Loan, not less than the Mortgage Interest Rate of
      the
      Defective Mortgage Loan and not more than 1% in excess of the Mortgage Interest
      Rate of such Defective Mortgage Loan, (iii) if an Adjustable-Rate Mortgage
      Loan,
      have a Maximum Mortgage Interest Rate not less than the Maximum Mortgage
      Interest Rate for the Defective Mortgage Loan, (iv) if an Adjustable-Rate
      Mortgage Loan, have a Minimum Mortgage Interest Rate not less than the Minimum
      Mortgage Interest Rate of the Defective Mortgage Loan, (v) if an Adjustable-Rate
      Mortgage Loan, have the same Index as the Defective Mortgage Loan, (vi) if
      an
      Adjustable-Rate Mortgage Loan, have a Gross Margin equal to or greater than
      the
      Gross Margin of the Defective Mortgage Loan, (vii) if an Adjustable-Rate
      Mortgage Loan, have a next Adjustment Date not more than two months later than
      the next Adjustment Date on the Defective Mortgage Loan, (viii) have a remaining
      term to maturity not greater than (and not more than one year less than) that
      of
      the Defective Mortgage Loan, (ix) be current as of the date of substitution,
      (x) have a Combined Loan-to-Value Ratio as of the date of substitution
      equal to or lower than the Combined Loan-to-Value Ratio of the Defective
      Mortgage Loan as of such date, (xi) have a risk grading determined by the Seller
      at least equal to the risk grading assigned on the Defective Mortgage Loan,
      (xii) have been reunderwritten by the Seller in accordance with the same
      underwriting criteria and guidelines as the Defective Mortgage Loan, (xiii)
      have
      the same Due Date as the Defective Mortgage Loan and (xiv) conform to each
      representation and warranty set forth in Section 3.01 of the Mortgage Loan
      Purchase Agreement applicable to the Defective Mortgage Loan. In the event
      that
      one or more mortgage loans are substituted for one or more Defective Mortgage
      Loans, the amounts described in clause (i) hereof shall be determined on the
      basis of aggregate principal balances, the Mortgage Interest Rates described
      in
      clause (ii) hereof shall be determined on the basis of weighted average Mortgage
      Interest Rates, the risk gradings described in clause (xi) hereof shall be
      satisfied as to each such mortgage loan, the terms described in clause (viii)
      hereof shall be determined on the basis of weighted average remaining term
      to
      maturity, the Combined Loan-to-Value Ratios 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 (xiv) hereof must be satisfied as to each Eligible Substitute Mortgage
      Loan or in the aggregate, as the case may be.

    

    
      
         

      

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

    

    ERISA-Restricted
      Certificates:
      Any of
      the Class B-1, Class CE-1, Class CE-2, Class P, Class R and Class R-X
      Certificates or any of the Offered Certificates that no longer has the
      applicable credit rating required by the Underwriter’s Exemption.

    

    Escrow
      Account:
      The
      account or accounts created and maintained pursuant to
      Section 3.06.

    

    Escrow
      Payments:
      The
      amounts constituting taxes, mortgage insurance premiums, fire and hazard
      insurance premiums and other payments required to be escrowed by the Mortgagor
      with the mortgagee pursuant to any Mortgage Loan.

    

    Estate
      in Real Property:
      A fee
      simple estate in a parcel of real property.

    

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

    

    Excess
      Servicing Fee:
      With
      respect to each Mortgage Loan (including each REO Property) and for any calendar
      month, an amount equal to one month’s interest (or in the event of any payment
      of interest which accompanies a Principal Prepayment in full made by the
      Mortgagor during such calendar month, interest for the number of days covered
      by
      such payment of interest) at the Excess Servicing Fee Rate on the same principal
      amount on which interest on such Mortgage Loan accrues for such calendar month.
      The Excess Servicing Fee shall only be payable for so long as Litton Loan
      Servicing LP is the Servicer of the Mortgage Loans.

    

    Excess
      Servicing Fee Rate:
      So long
      as Litton Loan Servicing LP is the Servicer, with respect to each Mortgage
      Loan,
      0.35% per annum. At any time Litton Loan Servicing LP is not the servicer,
      with
      respect to each Mortgage Loan, 0.00% per annum.

    

    Extended
      Period:
      As
      defined in Section 9.04(b).

    

    Extra
      Principal Distribution Amount:
      As of
      any Distribution Date, the lesser of (x) the Monthly Excess Interest Amount
      for such Distribution Date and (y) the Overcollateralization Deficiency for
      such Distribution Date.

    

    
      
         

      

      
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    FDIC:
      Federal
      Deposit Insurance Corporation or any successor thereto.

    

    Fidelity
      Bond:
      Shall
      have the meaning assigned thereto in Section 3.12.

    

    Final
      Recovery Determination:
      With
      respect to any defaulted Mortgage Loan or any REO Property (other than a
      Mortgage Loan or REO Property purchased by the Seller or the Servicer pursuant
      to or as contemplated by Section 2.03 or 10.01), a determination made by
      the Servicer that all Insurance Proceeds, Liquidation Proceeds and other
      payments or recoveries which the Servicer, in its reasonable good faith
      judgment, expects to be finally recoverable in respect thereof have been so
      recovered. The Servicer shall maintain records, prepared by a Servicing Officer,
      of each Final Recovery Determination made thereby.

    

    First
      Lien Mortgage Loan:
      Any of
      the Mortgage Loans which are secured by a first mortgage lien that is senior
      to
      a junior lien, if any, on the related Mortgaged Property.

    

    Fixed
      Payer Rate:
      The
      fixed rate payable with respect to each of the first 47 Distribution Dates,
      which is 5.20%.

    

    Fixed-Rate
      Certificates:
      The
      Class B-1 Certificates.

    

    Fixed-Rate
      Mortgage Loan:
      A
      Mortgage Loan which has a constant annual rate at which interest accrues in
      accordance with the provisions of the related Mortgage Note.

    

    Floating
      Rate Certificates:
      Any of
      the Class A-1, Class A-2, Class A-3, 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.

    

    Foreclosure
      Price:
      The
      amount reasonably expected to be received from the sale of the related Mortgaged
      Property net of any expenses associated with foreclosure
      proceedings.

    

    Form
      8-K Disclosure Information:
      As
      defined in Section 3.29(c) hereof.

    

    Gross
      Margin:
      With
      respect to each Adjustable-Rate Mortgage Loan, the fixed percentage, if any,
      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 Interest Rate for such Mortgage Loan.

    

    HUD:
      The
      United States Department of Housing and Urban Development, or any successor
      thereto, including the Federal Housing Commissioner and the Secretary of Housing
      and Urban Development where appropriate under the FHA Regulations.

    

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

    

    
      
         

      

      
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    Independent
      Contractor:
      Either
      (i) any Person (other than the Servicer) that would be an “independent
      contractor” with respect to the Trust Fund within the meaning of
      Section 856(d)(3) of the Code if the Trust Fund 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 percent or more of any Class of Certificates), so long as the Trust Fund
      does
      not receive or derive any income from such Person and provided that the
      relationship between such Person and the Trust Fund is at arm’s length, all
      within the meaning of Treasury Regulations Section 1.856-4(b)(5), or
      (ii) any other Person (including the Servicer) if the Trustee has received
      an Opinion of Counsel, which Opinion of Counsel shall be an expense of the
      Trust
      Fund, 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.

    

    Index:
      With
      respect to each Adjustable-Rate Mortgage Loan and with respect to each related
      Adjustment Date, the index as specified in the related Mortgage
      Note.

    

    Initial
      Certificate Principal Balance:
      With
      respect to any Certificate of a Class other than a Class CE or Residual
      Certificate, the amount designated “Initial Certificate Principal Balance” on
      the face thereof.

    

    Initial
      Overcollateralization Amount:
      $9,588,711.88

    

    Insurance
      Proceeds:
      Proceeds of any title policy, hazard policy or other insurance policy covering
      a
      Mortgage Loan, to the extent such proceeds are not to be applied to the
      restoration of the related Mortgaged Property or released to the Mortgagor
      in
      accordance with the procedures that the Servicer would follow in servicing
      mortgage loans held for its own account, subject to the terms and conditions
      of
      the related Mortgage Note and Mortgage.

    

    Interest
      Accrual Period:
      With
      respect to any Distribution Date and (i) with respect to the Floating Rate
      Certificates, the period from the preceding Distribution Date through the day
      prior to the current Distribution Date (or, in the case of the first
      Distribution Date, the period from the Closing Date through and including the
      day prior to the initial Distribution Date), and (ii) with respect to (a)
      the Fixed-Rate Certificates, the REMIC 3 Class CE-1 Interest, the REMIC 3 Class
      CE-2 Interest, the REMIC 3 Class P Interest, the REMIC A Class CE-1 Interest,
      the REMIC B Class P Interest and the REMIC D Class CE-2 Interest and (b) the
      REMIC 1 Regular Interests and the REMIC 2 Regular Interests, the calendar month
      immediately preceding the month in which such Distribution Date
      occurs.

    

    Interest
      Carry Forward Amount:
      For any
      Class of Certificates (other than the Class CE, Class P and Residual
      Certificates) and any Distribution Date, the sum of (a) the excess, if any,
      of the Accrued Certificate Interest for such Distribution Date and any Interest
      Carry Forward Amount for such Class for the prior Distribution Date, over the
      amount in respect of interest actually distributed on such Class on such
      Distribution Date and (b) interest on such excess at the applicable
      Certificate Interest Rate (x) with respect to the Floating Rate
      Certificates, on the basis of the actual number of days elapsed on the basis
      of
      a 360-day year since the prior Distribution Date, and (y) with respect to
      the Fixed-Rate Certificates, on the basis of a 360-day year consisting of twelve
      30-day months.

    

    
      
         

      

      
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    Interest
      Percentage:
      With
      respect to any Class of Certificates and any Distribution Date, the ratio
      (expressed as a decimal carried to six places) of the Accrued Certificate
      Interest for such Class to the sum of the Accrued Certificate Interest for
      all
      Classes of Certificates, in each case with respect to such Distribution Date
      and
      without regard to Relief Act Interest Shortfalls.

    

    Interest
      Remittance Amount:
      As of
      any Distribution Date, (A) the sum, without duplication, of (i) all interest
      collected or advanced with respect to the related Collection Period on the
      Mortgage Loans received by the Servicer on or prior to the Determination Date
      for such Distribution Date (less the Administrative Fees for such Mortgage
      Loans, amounts available for reimbursement of Advances and Servicing Advances
      pursuant to Section 3.05, expenses reimbursable pursuant to Section 6.03
      and indemnification payments pursuant to Sections 3.26 and 8.05), (ii) all
      Compensating Interest paid by the Servicer on such Distribution Date with
      respect to the Mortgage Loans, (iii) the portion of any payment in connection
      with any Principal Prepayment (other than any Prepayment Interest Excess),
      any
      Substitution Adjustment Amount, Termination Price, Purchase Price, Net
      Liquidation Proceeds, Insurance Proceeds or Condemnation Proceeds relating
      to
      interest with respect to the Mortgage Loans received during the related
      Prepayment Period and (iv) any Reimbursement Amount relating to the Mortgage
      Loans received during the related Prepayment Period less (B) any amounts payable
      to the Swap Provider (including any Net Swap Payment and any Swap Termination
      Payment owed to the Swap Provider but excluding any Defaulted Swap Termination
      Payment).

    

    Issuing
      Entity:
      C-BASS
      2007-CB5 Trust.

    

    Late
      Collections:
      With
      respect to any Mortgage Loan, all amounts received subsequent to the
      Determination Date immediately following any related Collection Period, 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 on a contractual basis for
      such Collection Period and not previously recovered.

    

    Lender:
      As
      defined in Section 6.05(a).

    

    LIBOR:
      With
      respect to each Interest Accrual Period, the rate determined by the Trustee
      on
      the related LIBOR Determination Date on the basis of the offered rate for
      one-month United States dollar deposits, as such rate appears on the Reuters
      Screen LIBOR01 Page, as of 11:00 a.m. (London time) on such LIBOR Determination
      Date. If no such quotations are available on an LIBOR Determination Date, LIBOR
      for the related Interest Accrual Period will be established by the Trustee
      as
      follows:

    

    
      
         

      

      
        31

        
          

        

      

      
         

      

    

    (i) If
      on
      such LIBOR Determination Date two or more Reference Banks provide quotations
      as
      to the rate at which deposits in U.S. Dollars are offered as of 11:00 a.m.
      (London time) to prime banks in the London interbank market for a period of
      one
      month in amounts approximately equal to the aggregate Certificate Principal
      Balance of the Floating Rate Certificates, 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 0.001%);

    

    (ii) If
      on
      such LIBOR Determination Date fewer than two Reference Banks provide such
      offered quotations, LIBOR for the related Interest Accrual Period shall be
      the
      arithmetic mean of the rates quoted by one or more major banks in New York
      City,
      selected by the Trustee, as of 11:00 a.m., New York City time, on such date
      for loans in U.S. Dollars to leading European banks for a period of one month
      in
      amounts approximately equal to the aggregate Certificate Principal Balance
      of
      the Floating Rate Certificates; and

    

    (iii) If
      no
      such quotations can be obtained, LIBOR for the related Interest Accrual Period
      shall be LIBOR for the prior Distribution Date.

    

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

    

    LIBOR
      Determination Date:
      With
      respect to the Floating Rate Certificates, (i) for the first Distribution
      Date, the second LIBOR Business Day preceding the Closing Date and (ii) for
      each subsequent Distribution Date, the second LIBOR Business Day prior to the
      immediately preceding Distribution Date.

    

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

    

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

    

    Liquidation
      Proceeds:
      The
      amount (other than amounts received in respect of the rental of any REO Property
      prior to REO Disposition) received by the 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 or (ii) the liquidation of a
      defaulted Mortgage Loan by means of a trustee’s sale, foreclosure sale or
      otherwise.

    

    
      
         

      

      
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    Losses:
      As
      defined in Section 9.03.

    

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

    

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

    

    Majority
      Class R Certificateholders:
      The
      Holders of Class R Certificates evidencing at least a 51% Percentage
      Interest in the Class R Certificates.

    

    Marker
      Rate:
      With
      respect to the Class CE Interest and any Distribution Date, a per annum rate
      equal to two (2) times the weighted average of the Uncertificated REMIC 2
      Pass-Through Rates for REMIC 2 Regular Interest LT2A1, REMIC 2 Regular Interest
      LT2A2, REMIC 2 Regular Interest LT2A3, REMIC 2 Regular Interest LT2M1, REMIC
      2
      Regular Interest LT2M2, REMIC 2 Regular Interest LT2M3, REMIC 2 Regular Interest
      LT2M4, REMIC 2 Regular Interest LT2M5, REMIC 2 Regular Interest LT2M6, REMIC
      2
      Regular Interest LT2M7, REMIC 2 Regular Interest LT2M8, REMIC 2 Regular Interest
      LT2M9, REMIC 2 Regular Interest LT2B1 and REMIC 2 Regular Interest LT2ZZ, (i)
      with the rate on each such REMIC Regular Interest (other than REMIC 2 Regular
      Interest LT2ZZ) subject to a cap equal to the lesser of the Pass-Through Rate
      of
      its Corresponding Class and the REMIC 3 Cap for the purposes of this calculation
      and (ii) with the rate on REMIC 2 Regular Interest LT2ZZ subject to a cap of
      zero for the purpose of this calculation; provided, however, that for this
      purpose, calculations of the Uncertificated REMIC 2 Pass-Through Rate and the
      REMIC 3 Cap with respect to each such REMIC Regular Interest (other than REMIC
      2
      Regular Interest LT2B1 and REMIC 2 Regular Interest LT2ZZ) shall be multiplied
      by a fraction, the numerator of which is the actual number of days in the
      Interest Accrual Period and the denominator of which is 30.

    

    Maximum
      LT2ZZ Uncertificated Accrued Interest Deferral Amount:
      With
      respect to any Distribution Date, the excess of (a) accrued interest at the
      Uncertificated REMIC 2 Pass-Through Rate applicable to REMIC 2 Regular Interest
      LT2ZZ for such Distribution Date on a balance equal to the Uncertificated
      Balance of REMIC 2 Regular Interest LT2ZZ minus the REMIC 2 Overcollateralized
      Amount, in each case for such Distribution Date, over (b) Uncertificated Accrued
      Interest on REMIC 2 Regular Interest LT2A1, REMIC 2 Regular Interest LT2A2,
      REMIC 2 Regular Interest LT2A3, REMIC 2 Regular Interest LT2M1, REMIC 2 Regular
      Interest LT2M2, REMIC 2 Regular Interest LT2M3, REMIC 2 Regular Interest LT2M4,
      REMIC 2 Regular Interest LT2M5, REMIC 2 Regular Interest LT2M6, REMIC 2 Regular
      Interest LT2M7, REMIC 2 Regular Interest LT2M8, REMIC 2 Regular Interest LT2M9
      and REMIC 2 Regular Interest LT2B1, each subject to a cap equal to the lesser
      of
      the Pass-Through Rate of the related Corresponding Class and the REMIC 3 Cap
      for
      the purpose of this calculation; provided, however, that for this purpose,
      calculations of the Uncertificated REMIC 2 Pass-Through Rate and the related
      caps with respect to Uncertificated Accrued Interest on REMIC 2 Regular Interest
      LT2A1, REMIC 2 Regular Interest LT2A2, REMIC 2 Regular Interest LT2A3, REMIC
      2
      Regular Interest LT2M1, REMIC 2 Regular Interest LT2M2, REMIC 2 Regular Interest
      LT2M3, REMIC 2 Regular Interest LT2M4, REMIC 2 Regular Interest LT2M5, REMIC
      2
      Regular Interest LT2M6, REMIC 2 Regular Interest LT2M7, REMIC 2 Regular Interest
      LT2M8 and REMIC 2 Regular Interest LT2M9 shall be multiplied by a fraction,
      the
      numerator of which is the actual number of days in the Interest Accrual Period
      and the denominator of which is 30.

    

    
      
         

      

      
        33

        
          

        

      

      
         

      

    

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

    

    Maximum
      Rate Cap:
      With
      respect to any Distribution Date and the Class A and Class M Certificates,
      a per
      annum rate (expressed on the basis of an assumed 360-day year and the actual
      number of days elapsed during the related Interest Accrual Period) equal to
      (i)
      the Net Maximum WAC plus (ii) 12 times the quotient of (a) the Net Swap Payment
      and Swap Termination Payment (other than a Defaulted Swap Termination Payment),
      if any, made to the Supplemental Interest Trust and (b) the Pool Balance as
      of
      the first day of the related Collection Period. 

    

    Minimum
      Mortgage Interest Rate:
      With
      respect to each Adjustable-Rate Mortgage Loan, either the percentage set forth
      in the related Mortgage Note as the minimum Mortgage Interest Rate thereunder
      or
      if no such percentage is set forth in the related Mortgage Note, the Gross
      Margin set forth in the related Mortgage Note.

    

    Monthly
      Excess Cashflow Amount:
      The sum
      of the Monthly Excess Interest Amount, the Overcollateralization Release Amount
      and (without duplication) any portion of the Principal Distribution Amount
      remaining after principal distributions pursuant to Section
      4.02(a).

    

    Monthly
      Excess Interest Amount:
      With
      respect to each Distribution Date, the amount, if any, by which the Interest
      Remittance Amount for such Distribution Date exceeds the aggregate amount
      distributed on such Distribution Date pursuant to paragraphs (i)
      through (xii) under Section 4.01.

    

    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 Relief Act Interest Shortfalls;
      (b) without giving effect to any extension granted or agreed to by the
      Servicer pursuant to Section 3.01; and (c) on the assumption that all
      other amounts, if any, due under such Mortgage Loan are paid when
      due.

    

    Monthly
      Statement:
      As
      defined in Section 4.06.

    

    Moody’s:
      Moody’s
      Investors Service, Inc. and its successors, and if such company shall for any
      reason no longer perform the functions of a securities rating agency, “Moody’s”
shall be deemed to refer to any other “nationally recognized statistical rating
      organization” as set forth on the most current list of such organizations
      released by the Securities and Exchange Commission.

    

    
      
         

      

      
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    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 documents listed in Section 2.01 pertaining to a particular
      Mortgage Loan and any additional documents required to be added to the Mortgage
      File pursuant to this Agreement.

    

    Mortgage
      Interest Rate:
      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 (i) in the case of each Fixed-Rate Mortgage Loan
      shall
      remain constant at the rate set forth in the Mortgage Loan Schedule as the
      Mortgage Interest Rate in effect immediately following the Cut-off Date and
      (ii)
      in the case of 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 Interest
      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, to equal the sum, rounded to the nearest 0.125% as provided
      in
      the Mortgage Note, of the Index, determined as set forth in the related Mortgage
      Note, plus the related Gross Margin subject to the limitations set forth in
      the
      related Mortgage Note. 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.

    

    Mortgage
      Loan:
      Each
      mortgage loan transferred and assigned to the Trustee pursuant to
      Section 2.01 or Section 2.03(d) as from time to time held as a part of
      the Trust Fund, the Mortgage Loans so held being identified in the Mortgage
      Loan
      Schedule and set forth in Exhibit
      D
      attached
      hereto.

    

    Mortgage
      Loan Purchase Agreement:
      The
      agreement between the Seller and the Depositor, dated as of May 1, 2007,
      regarding the transfer of the Mortgage Loans by the Seller to or at the
      direction of the Depositor.

    

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

    

    (1) the
      Seller’s Mortgage Loan identifying number;

    

    (2) the
      city,
      state, and zip code of the Mortgaged Property;

    

    (3) the
      type
      of Residential Dwelling constituting the Mortgaged Property or a designation
      that the Mortgaged Property is a multi-family property;

    

    (4) the
      occupancy status of the Mortgaged Property at origination;

    

    (5) the
      original months to maturity;

    

    
      
         

      

      
        35

        
          

        

      

      
         

      

    

    (6) the
      date
      of origination;

    

    (7) the
      first
      payment date;

    

    (8) the
      stated maturity date;

    

    (9) the
      stated remaining months to maturity;

    

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

    

    (11) the
      Principal Balance of each Mortgage Loan as of the Cut-off Date;

    

    (12) the
      Mortgage Interest Rate of the Mortgage Loan as of the Cut-off Date;

    

    (13) the
      current principal and interest payment of the Mortgage Loan as of the Cut-off
      Date;

    

    (14) the
      contractual interest paid to date of the Mortgage Loan;

    

    (15) the
      Combined Loan-to-Value Ratio at origination;

    

    (16) a
      code
      indicating the loan performance status of the Mortgage Loan as of the Cut-off
      Date;

    

    (17) a
      code
      indicating whether the Mortgaged Property is in bankruptcy or in its forbearance
      period as of the Cut-off Date;

    

    (18) a
      code
      indicating the Index that is associated with such Mortgage Loan;

    

    (19) the
      Gross
      Margin;

    

    (20) the
      Periodic Rate Cap;

    

    (21) the
      Minimum Mortgage Interest Rate;

    

    (22) the
      Maximum Mortgage Interest Rate;

    

    (23) a
      code
      indicating whether the Mortgage Loan has a Prepayment Penalty and the type
      of
      Prepayment Penalty;

    

    (24) the
      first
      Adjustment Date immediately following the Cut-off Date;

    

    (25) the
      rate
      adjustment frequency;

    

    (26) the
      payment adjustment frequency; and

    

    
      
         

      

      
        36

        
          

        

      

      
         

      

    

    (27) a
      code
      indicating whether the Mortgage Loan is a Second Lien Mortgage
      Loan.

    

    The
      Mortgage Loan Schedule shall set forth the following information, as of the
      Cut-off Date, with respect to the Mortgage Loans in the aggregate: (1) the
      number of Mortgage Loans; (2) the current Principal Balance of the Mortgage
      Loans; (3) the weighted average Mortgage Interest 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 Seller in
      accordance with the provisions of this Agreement. With respect to any Eligible
      Substitute Mortgage Loan, 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 indebtedness evidencing the
      indebtedness of a Mortgagor under a Mortgage Loan.

    

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

    

    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
      or
      multi-family dwelling.

    

    Mortgagor:
      The
      obligor on a Mortgage Note.

    

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

    

    Net
      Maximum Mortgage Interest Rate:
      With
      respect to any Adjustable-Rate Mortgage Loan, the applicable Maximum Mortgage
      Interest Rate minus the Administrative Fee Rate. With respect to any Fixed-Rate
      Mortgage Loan, the Mortgage Interest Rate for such Mortgage Loan minus the
      Administrative Fee Rate.

    

    Net
      Maximum WAC:
      With
      respect to any Distribution Date, the average of the Net Maximum Mortgage
      Interest Rates for the Mortgage Loans, weighted on the basis of the Principal
      Balances of the Mortgage Loans as of the first day of the related Collection
      Period.

    

    Net
      Mortgage Interest Rate:
      With
      respect to any Mortgage Loan, the Mortgage Interest Rate borne by such Mortgage
      Loan minus the Administrative Fee Rate.

    

    Net
      Swap Payment:
      With
      respect to any Distribution Date, any net payment (other than a Swap Termination
      Payment) payable by the Supplemental Interest Trust to the Swap Provider on
      the
      related Fixed Rate Payer Payment Date (as defined in the Swap Agreement).

    

    Net
      Swap Receipt:
      With
      respect to any Distribution Date, any net payment (other than a Swap Termination
      Payment) made by the Swap Provider to the Supplemental Interest Trust on the
      related Floating Rate Payer Payment Date (as defined in the Swap Agreement),
      or
      any amount withdrawn from the Swap Account that is required under that paragraph
      to be treated as a Net Swap Receipt for purposes of determining the
      distributions from the Supplemental Interest Trust.

    

    
      
         

      

      
        37

        
          

        

      

      
         

      

    

    Net
      WAC:
      With
      respect to any Distribution Date, the average of the Net Mortgage Interest
      Rates
      for the Mortgage Loans, weighted on the basis of the Principal Balances of
      the
      Mortgage Loans as of the first day of the related Collection
      Period.

    

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

    

    Nonrecoverable
      Advance:
      Any
      Advance or 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 Servicer, will not or, in the case of a proposed Advance or Servicing
      Advance, would not be ultimately recoverable from Late Collections on such
      Mortgage Loan or REO Property as provided herein.

    

    Notional
      Amount:
      With
      respect to the Class CE-1 Certificates, the REMIC 3 Class CE-1 Interest and
      the
      REMIC A Class CE-1 Interest, an amount equal to the aggregate Uncertificated
      Principal Balance of the REMIC 2 Regular Interests other than REMIC 2 Regular
      Interest LT2P.

    

    Offered
      Certificates:
      The
      Class A-1, Class A-2, Class A-3, 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.

    

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

    

    Opinion
      of Counsel:
      A
      written opinion of counsel, who may, without limitation, be a salaried counsel
      for the Depositor or the Servicer 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 Servicer may opt to terminate the Mortgage
      Pool pursuant to Section 10.01.

    

    Original
      Class Certificate Principal Balance:
      With
      respect to each Class of Certificates, the Certificate Principal Balance thereof
      on the Closing Date, as set forth opposite such Class in the Preliminary
      Statement, except (i) with respect to the Class CE-1 and Class CE-2 Certificates
      and the Residual Certificates, which have an Original Class Certificate
      Principal Balance of zero, (ii) with respect to any Class A, Class M, Class
      B or
      Class P REMIC 3 Regular Interest, the amount set forth opposite such Class
      in
      the Preliminary Statement, (iii) with respect to the REMIC 3 Class CE Regular
      Interest, which, solely for federal income tax purposes, has an Original Class
      Certificate Principal Balance equal to the Initial Overcollateralization
      Amount.

    

    
      
         

      

      
        38

        
          

        

      

      
         

      

    

    Overcollateralization
      Amount:
      As of
      any Distribution Date, the excess, if any, of (x) the Pool Balance as of the
      last day of the immediately preceding Collection Period after giving effect
      to
      Principal Prepayments in the related Prepayment Period over (y) the
      aggregate Certificate Principal Balances of all Classes of Offered Certificates,
      the Class B-1 Certificates and the Class P Certificates (after taking into
      account all distributions of principal on such Distribution Date and the
      increase of any Certificate Principal Balance as a result of Subsequent
      Recoveries).

    

    Overcollateralization
      Deficiency:
      As of
      any Distribution Date, the excess, if any, of (x) the Targeted
      Overcollateralization Amount for such Distribution Date over (y) the
      Overcollateralization Amount for such Distribution Date, calculated for this
      purpose after taking into account the reduction on such Distribution Date of
      the
      Certificate Principal Balances of all Classes of Offered Certificates and the
      Class B-1 Certificates resulting from the distribution of the Principal
      Distribution Amount (but not the Extra Principal Distribution Amount) on such
      Distribution Date, but prior to taking into account any Applied Realized Loss
      Amounts on such Distribution Date.

    

    Overcollateralization
      Floor:
      The
      product of 0.50% and the Pool Balance as of the Cut-off Date.

    

    Overcollateralization
      Release Amount:
      With
      respect to any Distribution Date on and after the Stepdown Date on which a
      Trigger Event is not in effect, the lesser of (x) the Principal Remittance
      Amount for such Distribution Date and (y) the excess, if any, of
      (i) the Overcollateralization Amount for such Distribution Date, assuming
      that 100% of the Principal Remittance Amount is applied as a principal payment
      on the Offered Certificates and the Class B-1 Certificates on such Distribution
      Date, over (ii) the Targeted Overcollateralization Amount for such
      Distribution Date. With respect to any Distribution Date on which a Trigger
      Event is in effect, the Overcollateralization Release Amount will be
      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.

    

    Pass-Through
      Rate:
      Any of
      the Class A-1 Pass-Through Rate, Class A-2 Pass-Through Rate, the
      Class A-3 Pass-Through Rate, the Class M-1 Pass-Through Rate, the
      Class M-2 Pass-Through Rate, the Class M-3 Pass-Through Rate, the
      Class M-4 Pass-Through Rate, the Class M-5 Pass-Through Rate, the
      Class M-6 Pass-Through Rate, the Class M-7 Pass-Through Rate, the
      Class M-8 Pass-Through Rate, the Class M-9 Pass-Through Rate and the
      Class B-1 Pass-Through Rate.

    

    With
      respect to the REMIC 1 Regular Interests, the Uncertificated REMIC 1
      Pass-Through Rate. With respect to the REMIC 2 Regular Interests, the
      Uncertificated REMIC 2 Pass-Through Rate. With respect to the REMIC 3 Regular
      Interests (other than the Class CE-1 REMIC 3 Regular Interest and Class SWAP-IO
      REMIC 3 Regular Interest), the Uncertificated REMIC 3 Pass-Through
      Rate.

    

    With
      respect to the Class CE-1 REMIC 3 Regular Interest and any Distribution Date,
      a
      per annum rate equal to the percentage equivalent of a fraction,
      the numerator of which is the sum of the amounts calculated pursuant to clauses
      (A) through (P) below, and the denominator of which is the aggregate of the
      Uncertificated Principal Balances of REMIC 2 Regular Interest LT2A1, REMIC
      2
      Regular Interest LT2A2, REMIC 2 Regular Interest LT2A3, REMIC 2 Regular Interest
      LT2M1, REMIC 2 Regular Interest LT2M2, REMIC 2 Regular Interest LT2M3, REMIC
      2
      Regular Interest LT2M4, REMIC 2 Regular Interest LT2M5, REMIC 2 Regular Interest
      LT2M6, REMIC 2 Regular Interest LT2M7, REMIC 2 Regular Interest LT2M8, REMIC
      2
      Regular Interest LT2M9, REMIC 2 Regular Interest LT2B1 and REMIC 2 Regular
      Interest LT2ZZ. For purposes of calculating the Pass-Through Rate for the REMIC
      3 Class CE-1 Regular Interest, the numerator is equal to the sum of the
      following components:

    

    
      
         

      

      
        39

        
          

        

      

      
         

      

    

    (A) the
      Uncertificated REMIC 2 Pass-Through Rate for REMIC 2 Regular Interest LT2AA
      minus the Marker Rate, applied to an amount equal to the Uncertificated Balance
      of REMIC 2 Regular Interest LT2AA;

    

    (B) the
      Uncertificated REMIC 2 Pass-Through Rate for REMIC 2 Regular Interest LT2A1
      minus the Marker Rate, applied to an amount equal to the Uncertificated
      Principal Balance of REMIC 2 Regular Interest LT2A1;

    

    (C) the
      Uncertificated REMIC 2 Pass-Through Rate for REMIC 2 Regular Interest LT2A2
      minus the Marker Rate, applied to an amount equal to the Uncertificated
      Principal Balance of REMIC 2 Regular Interest LT2A2;

    

    (D) the
      Uncertificated REMIC 2 Pass-Through Rate for REMIC 2 Regular Interest LT2A3
      minus the Marker Rate, applied to an amount equal to the Uncertificated
      Principal Balance of REMIC 2 Regular Interest LT2A3;

    

    (E) the
      Uncertificated REMIC 2 Pass-Through Rate for REMIC 2 Regular Interest LT2M1
      minus the Marker Rate, applied to an amount equal to the Uncertificated
      Principal Balance of REMIC 2 Regular Interest LT2M1;

    

    (F) the
      Uncertificated REMIC 2 Pass-Through Rate for REMIC 2 Regular Interest LT2M2
      minus the Marker Rate, applied to an amount equal to the Uncertificated
      Principal Balance of REMIC 2 Regular Interest LT2M2;

    

    (G) the
      Uncertificated REMIC 2 Pass-Through Rate for REMIC 2 Regular Interest LT2M3
      minus the Marker Rate, applied to an amount equal to the Uncertificated
      Principal Balance of REMIC 2 Regular Interest LT2M3;

    

    (H) the
      Uncertificated REMIC 2 Pass-Through Rate for REMIC 2 Regular Interest LT2M4
      minus the Marker Rate, applied to an amount equal to the Uncertificated
      Principal Balance of REMIC 2 Regular Interest LT2M4;

    

    (I) the
      Uncertificated REMIC 2 Pass-Through Rate for REMIC 2 Regular Interest LT2M5
      minus the Marker Rate, applied to an amount equal to the Uncertificated
      Principal Balance of REMIC 2 Regular Interest LT2M5;

    

    (J) the
      Uncertificated REMIC 2 Pass-Through Rate for REMIC 2 Regular Interest LT2M6
      minus the Marker Rate, applied to an amount equal to the Uncertificated
      Principal Balance of REMIC 2 Regular Interest LT2M6;

    

    
      
         

      

      
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    (K) the
      Uncertificated REMIC 2 Pass-Through Rate for REMIC 2 Regular Interest LT2M7
      minus the Marker Rate, applied to an amount equal to the Uncertificated
      Principal Balance of REMIC 2 Regular Interest LT2M7;

    

    (L) the
      Uncertificated REMIC 2 Pass-Through Rate for REMIC 2 Regular Interest LT2M8
      minus the Marker Rate, applied to an amount equal to the Uncertificated
      Principal Balance of REMIC 2 Regular Interest LT2M8;

    

    (M) the
      Uncertificated REMIC 2 Pass-Through Rate for REMIC 2 Regular Interest LT2M9
      minus the Marker Rate, applied to an amount equal to the Uncertificated
      Principal Balance of REMIC 2 Regular Interest LT2M9;

    

    (N) the
      Uncertificated REMIC 2 Pass-Through Rate for REMIC 2 Regular Interest LT2B1
      minus the Marker Rate, applied to an amount equal to the Uncertificated
      Principal Balance of REMIC 2 Regular Interest LT2B1;

    

    (O) the
      Uncertificated REMIC 2 Pass-Through Rate for REMIC 2 Regular Interest LT2ZZ
      minus the Marker Rate, applied to an amount equal to the Uncertificated
      Principal Balance of REMIC 2 Regular Interest LT2ZZ; and

    

    (P) 100%
      of
      the Uncertificated Accrued Interest on REMIC 2 Regular Interest
      LT2P.

    

    For
      federal income tax purposes, the Pass-Through Rate for the Class CE-1
      Certificates shall be an amount equal to 100% of the amounts distributable
      to
      the Class CE-1 REMIC A Regular Interest for such Distribution Date. The Class
      CE-1 REMIC A Regular Interest will be entitled to 100% of the amounts
      distributable to the Class CE-1 REMIC 3 Regular Interest.

    

    The
      Class
      SWAP-IO Interest shall not have a Pass-Through Rate, but interest for such
      regular interest and each Distribution Date shall be an amount equal to 100%
      of
      the amounts distributable to REMIC 2 Regular Interest LT2IO for such
      Distribution Date.

    

    Paying
      Agent:
      Any
      paying agent appointed pursuant to Section 5.05.

    

    Percentage
      Interest:
      With
      respect to any Certificate (other than a Class CE, Class P or Residual
      Certificate), a fraction, expressed as a percentage, the numerator of which
      is
      the Initial Certificate Principal Balance represented by such Certificate and
      the denominator of which is the Original Class Certificate Principal Balance
      of
      the related Class. With respect to a Class CE Certificate, the undivided
      percentage interest obtained by dividing the Initial Class CE Notional Amount
      by
      the Original Class CE Notional Amount of such Class. With respect to a Class
      P
      or Residual Certificate, the portion of the Class evidenced thereby, expressed
      as a percentage, as stated on the face of such Certificate; provided,
      however,
      that
      the sum of all such percentages for each such Class totals 100%.

    

    
      
         

      

      
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    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 Interest Rate for such Mortgage Loan may
      increase or decrease (without regard to the Maximum Mortgage Interest Rate
      or
      the Minimum Mortgage Interest Rate) on such Adjustment Date from the Mortgage
      Interest 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 or managed by the
      Depositor, the Servicer, the Trustee or any of their respective Affiliates
      or
      for which an Affiliate of the Trustee serves as an advisor:

    

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

    

    (ii) (A) demand
      and time deposits in, certificates of deposit of, bankers’ acceptances issued by
      or federal funds sold by any depository institution or trust company (including
      the Trustee or its agents acting in their respective commercial capacities)
      incorporated under the laws of the United States of America or any state thereof
      and subject to supervision and examination by federal and/or state authorities,
      so long as, at the time of such investment or contractual commitment providing
      for such investment, such depository institution or trust company or its
      ultimate parent has a short-term uninsured debt rating in one of the two highest
      available rating categories of S&P, Moody’s and DBRS and provided that each
      such investment has an original maturity of no more than 365 days and
      (B) any other demand or time deposit or deposit which is fully insured by
      the FDIC;

    

    (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 or higher by S&P
      and DBRS and rated 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 or (B) pursuant to such
      valuation, be equal, at all times, to 105% of the cash transferred by the
      Trustee in exchange for such collateral and (C) be delivered to the Trustee
      or, if the Trustee is supplying the collateral, an agent for the Trustee, 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 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 in its highest short-term unsecured debt rating available at the time
      of
      such investment;

    

    
      
         

      

      
        42

        
          

        

      

      
         

      

    

    (vi) units
      of
      money market funds registered under the Investment Company Act of 1940 including
      funds managed or advised by the Trustee or affiliates thereof having the highest
      rating category by the applicable Rating Agency; and

    

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

    

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

    

    Permitted
      Transferee:
      Any
      transferee of a Residual Certificate other than a Disqualified Organization
      or a
      Disqualified Non-U.S. Person.

    

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

    

    Pool
      Balance:
      As of
      any date of determination, the aggregate Principal Balance of the Mortgage
      Loans.

    

    Prepayment
      Interest Excess:
      With
      respect to any Distribution Date, any interest collected by the Servicer with
      respect to any Mortgage Loan as to which a Principal Prepayment in Full occurs
      from the 1st day of the month through the 15th day of the month in which such
      Distribution Date occurs and that represents interest that accrues from the
      1st
      day of such month to the date of such Principal Prepayment in Full.

    

    Prepayment
      Interest Shortfall:
      With
      respect to any Distribution Date, for each Mortgage Loan that was the subject
      of
      a Principal Prepayment in Full during the portion of the related Prepayment
      Period occurring in the prior calendar month that was applied by the Servicer
      to
      reduce the outstanding Principal Balance of such Mortgage Loan on a date
      preceding the related Due Date, an amount equal to interest at the applicable
      Net Mortgage Interest Rate on the amount of such Principal Prepayment in Full
      for the number of days commencing on the date on which the Principal Prepayment
      is applied and ending on the last day of the calendar month in which
      applied.

    

    Prepayment
      Penalty:
      With
      respect to any Prepayment Period, any prepayment premium, fee or charge payable
      by a Mortgagor in connection with any principal prepayment pursuant to the
      terms
      of the related Mortgage Note. 

    

    
      
         

      

      
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    Prepayment
      Period:
      With
      respect to any Distribution Date, the period commencing on the 16th day of
      the
      calendar month preceding the calendar month in which such Distribution Date
      occurs (or, in the case of the first Distribution Date, from May 1, 2007) and
      ending on the 15th day of the calendar month in which the related Distribution
      Date occurs.

    

    Primary
      Insurance Policy:
      Each
      policy of primary guaranty mortgage insurance issued by a Qualified Insurer
      in
      effect with respect to any Mortgage Loan, or any replacement policy therefor
      obtained by the Servicer pursuant to Section 3.08.

    

    Principal
      Balance:
      As to
      any Mortgage Loan and any day, other than a Liquidated Mortgage Loan, the
      related Cut-off Date Principal Balance, minus
      the sum
      of (i) all collections and other amounts credited against the principal balance
      of any such Mortgage Loan, (ii) the principal portion of Advances, (iii) any
      Deficient Valuation and (iv) any principal reduction resulting from a Servicer
      Modification. For purposes of this definition, a Liquidated Mortgage Loan shall
      be deemed to have a Principal Balance equal to the Principal Balance of the
      related Mortgage Loan as of the final recovery of related Liquidation Proceeds
      and a Principal Balance of zero thereafter. As to any REO Property and any
      day,
      the Principal Balance of the related Mortgage Loan immediately prior to such
      Mortgage Loan becoming REO Property minus any REO Principal Amortization
      received with respect thereto on or prior to such day.

    

    Principal
      Distribution Amount:
      As to
      any Distribution Date, the sum of (i) the Principal Remittance Amount
minus
      the
      Overcollateralization Release Amount, if any, and (ii) the Extra Principal
      Distribution Amount, if any.

    

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

    

    Principal
      Remittance Amount:
      With
      respect to any Distribution Date, the amount equal to (A) the sum (less amounts
      available for reimbursement of Advances and Servicing Advances pursuant to
      Section 3.05 and expenses and indemnification payments pursuant to
      Sections 6.03 and 8.05) of the following amounts (without duplication) with
      respect to the Mortgage Loans: (i) each payment of principal on a Mortgage
      Loan
      due during the immediately preceding Collection Period and received by the
      Servicer on or prior to the Determination Date for that Distribution Date,
      including any Advances with respect thereto, (ii) all full and partial Principal
      Prepayments received by the Servicer during the related Prepayment Period,
      (iii)
      the Insurance Proceeds, Subsequent Recoveries and Liquidation Proceeds (net
      of
      certain expenses) allocable to principal actually collected by the Servicer
      during the related Prepayment Period, (iv) the portion of the Purchase Price
      allocable to principal of all repurchased Defective Mortgage Loans with respect
      to that Prepayment Period, (v) any Substitution Adjustment Amount received
      during the related Prepayment Period and (vi) on the Distribution Date on which
      the Trust is to be terminated in accordance with Section 10.01 hereof, that
      portion of the Termination Price in respect of principal less
      (B) any
      amounts payable to the Swap Provider (including any Net Swap Payment and any
      Swap Termination Payment owed to the Swap Provider, other than a Defaulted
      Swap
      Termination Payment) not covered by the Interest Remittance Amount.

    

    
      
         

      

      
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    Private
      Certificates:
      Any of
      the Class B-1, Class CE-1, Class CE-2, Class P and Residual
      Certificates.

    

    Property
      Insurance Proceeds:
      Proceeds of any title policy, hazard policy or other insurance policy covering
      a
      Mortgage Loan, to the extent such proceeds are received by the Servicer and
      are
      not to be applied to the restoration of the related Mortgaged Property or
      released to the Mortgagor in accordance with the Servicer’s servicing
      procedures, subject to the terms and conditions of the related Mortgage Note
      and
      Mortgage.

    

    Prospectus
      Supplement:
      That
      certain Prospectus Supplement dated May 29, 2007 relating to the public offering
      of the Offered Certificates.

    

    Purchase
      Price:
      With
      respect to any Mortgage Loan or REO Property to be purchased pursuant to or
      as
      contemplated by Section 2.03 or 10.01, and as confirmed by an Officers’
Certificate from the Servicer to the Trustee, an amount equal to the sum of
      (i) 100% of the Principal Balance thereof as of the date of purchase (or
      such other price as provided in Section 10.01), (ii) in the case of
      (x) a Mortgage Loan, accrued interest on such Principal Balance at the
      applicable Mortgage Interest Rate in effect from time to time from the Due
      Date
      as to which interest was last covered by a payment by the Mortgagor or an
      Advance by the Servicer, which payment or Advance had as of the date of purchase
      been distributed pursuant to Section 4.01, through the end of the calendar
      month
      in which the purchase is to be effected, and (y) an REO Property, its fair
      market value, determined in good faith by the Servicer, (iii) any unreimbursed
      Servicing Advances and Advances and any unpaid Servicing Fees and Excess
      Servicing Fees allocable to such Mortgage Loan or REO Property, (iv) any
      amounts previously withdrawn from the Collection Account in respect of such
      Mortgage Loan or REO Property pursuant to Section 3.13, and (v) 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 Servicer or the Trustee
      in
      respect of the breach or defect giving rise to the purchase
      obligation.

    

    Qualified
      Insurer:
      Any
      insurance company acceptable to Fannie Mae or Freddie Mac.

    

    Rate
      Cap:
      With
      respect to any Distribution Date and the Certificates, a per annum rate
      (expressed, in the case of the Floating Rate Certificates, on the basis of
      an
      assumed 360-day year and the actual number of days elapsed during the related
      accrual period) equal to (i) the Net WAC less (ii) 12 times the quotient of
      (a)
      the Net Swap Payment and Swap Termination Payment (other than a Defaulted Swap
      Termination Payment), if any, made to the Swap Provider and (b) the Pool Balance
      as of the first day of the related Collection Period. 

    

    Rating
      Agency
      or
Rating
      Agencies:
      Moody’s, S&P and DBRS, or their respective successors. If such agencies or
      their successors are no longer in existence, “Rating Agencies” shall be such
      nationally recognized statistical rating organizations as set forth on the
      most
      current list of such organizations released by the Securities and Exchange
      Commission and designated by the Depositor, notice of which designation shall
      be
      given to the Trustee and the Servicer.

    

    
      
         

      

      
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    Realized
      Loss:
      With
      respect to a Liquidated Mortgage Loan, the amount by which the remaining unpaid
      Principal Balance of the Mortgage Loan plus accrued and unpaid interest thereon
      at the Mortgage Interest Rate through the last day of the month of liquidation,
      exceeds the amount of Net Liquidation Proceeds applied to the principal balance
      of the related Mortgage Loan. With respect to any Mortgage Loan, a Deficient
      Valuation or a reduction in the Principal Balance thereof resulting from a
      Servicer Modification.

    

    Realized
      Loss Amortization Amount:
      Any of
      the Class M-1 Realized Loss Amortization Amount, the Class M-2
      Realized Loss Amortization Amount, the Class M-3 Realized Loss Amortization
      Amount, the Class M-4 Realized Loss Amortization Amount, the Class M-5
      Realized Loss Amortization Amount, the Class M-6 Realized Loss Amortization
      Amount, the Class M-7 Realized Loss Amortization Amount, the Class M-8
      Realized Loss Amortization Amount, the Class M-9 Realized Loss Amortization
      Amount and the Class B-1 Realized Loss Amortization Amount.

    

    Record
      Date:
      With
      respect to the Floating Rate Certificates, the Business Day immediately
      preceding such Distribution Date; provided,
      however,
      that if
      any such Certificate becomes a Definitive Certificate, the Record Date for
      such
      Certificate shall be the last Business Day of the month immediately preceding
      the month in which the related Distribution Date occurs. With respect to the
      Fixed-Rate Certificates and the Class CE, Class P and Residual Certificates,
      the
      last Business Day of the month immediately preceding the month in which the
      related Distribution Date occurs.

    

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

    

    Regulation
      AB:
      Subpart
      229.1100 - Asset Backed Securities (Regulation AB), 17 C.F.R.
§§229.1100-229.1123, as such may be amended from time to time, and subject to
      such clarification and interpretation as have been provided by the Commission
      in
      the adopting release (Asset-Backed Securities, Securities Act Release No.
      33-8518, 70 Fed. Reg. 1,506, 1,631 (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.

    

    Reimbursement
      Amount:
      As
      defined in Section 2.03.

    

    Related
      Documents:
      With
      respect to any Mortgage Loan, the related Mortgage Notes, Mortgages and other
      related documents.

    

    Relief
      Act:
      The
      Servicemembers Civil Relief Act.

    

    Relief
      Act Interest Shortfall:
      With
      respect to any Distribution Date, for any Mortgage Loan with respect to which
      there has been a reduction in the amount of interest collectible thereon for
      the
      most recently ended Collection Period as a result of the application of the
      Relief Act or similar state or local laws, the amount by which (i) interest
      collectible on such Mortgage Loan during such Collection Period is less than
      (ii) one month’s interest on the Principal Balance of such Mortgage Loan at
      the Mortgage Interest Rate for such Mortgage Loan before giving effect to the
      application of the Relief Act or similar state or local laws.

    

    
      
         

      

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

    

    REMIC
      1 Regular Interests:
      REMIC 1 Regular Interest I and REMIC 1 Regular Interest I-1-A through REMIC
      1
      Regular Interest I-47-B and REMIC 1 Regular Interest I-CE-2 as designated in
      the
      Preliminary Statement hereto. Each REMIC 1 Regular Interest shall accrue
      interest at the related Uncertificated REMIC 1 Pass-Through 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 Principal Balance as set forth in the Preliminary Statement
      hereto.

    

    REMIC 2
      Interest Loss Allocation Amount:
      With
      respect to any Distribution Date, an amount equal to (a) the product of (i)
      the
      sum of the aggregate Principal Balance of the Mortgage Loans and related REO
      Properties then outstanding and (ii) the Uncertificated REMIC 2
      Pass-Through Rate for REMIC 2 Regular Interest LT2AA minus the Marker Rate,
      divided by (b) 12.

    

    REMIC
      2 Overcollateralization Target Amount:
      1.00%
      of the Targeted Overcollateralization Amount.

    

    REMIC
      2 Overcollateralized Amount:
      With
      respect to any date of determination, (i) 1.00% of the aggregate Uncertificated
      Principal Balances of the REMIC 2 Regular Interests minus (ii) the aggregate
      of
      the Uncertificated Principal Balances of REMIC 2 Regular Interest LT2A1, REMIC
      2
      Regular Interest LT2A2, REMIC 2 Regular Interest LT2A3, REMIC 2 Regular Interest
      LT2M1, REMIC 2 Regular Interest LT2M2, REMIC 2 Regular Interest LT2M3, REMIC
      2
      Regular Interest LT2M4, REMIC 2 Regular Interest LT2M5, REMIC 2 Regular Interest
      LT2M6, REMIC 2 Regular Interest LT2M7, REMIC 2 Regular Interest LT2M8, REMIC
      2
      Regular Interest LT2M9, REMIC 2 Regular Interest LT2B1 and 1.00% of REMIC 2
      Regular Interest LTP, in each case as of such date of
      determination.

    

    REMIC
      2 Principal Loss Allocation Amount:
      With
      respect to any Distribution Date, an amount equal to the product of (i) the
      aggregate Principal Balance of the Mortgage Loans and related REO Properties
      then outstanding and (ii) 1 minus a fraction, the numerator of which is two
      times the aggregate of the Uncertificated Principal Balances of REMIC 2 Regular
      Interest LT2A1, REMIC 2 Regular Interest LT2A2, REMIC 2 Regular Interest LT2A3,
      REMIC 2 Regular Interest LT2M1, REMIC 2 Regular Interest LT2M2, REMIC 2 Regular
      Interest LT2M3, REMIC 2 Regular Interest LT2M4, REMIC 2 Regular Interest LT2M5,
      REMIC 2 Regular Interest LT2M6, REMIC 2 Regular Interest LT2M7, REMIC 2 Regular
      Interest LT2M8, REMIC 2 Regular Interest LT2M9 and REMIC 2 Regular Interest
      LT2B1 and the denominator of which is the aggregate of the Uncertificated
      Principal Balances of REMIC 2 Regular Interest LT2A1, REMIC 2 Regular Interest
      LT2A2, REMIC 2 Regular Interest LT2A3, REMIC 2 Regular Interest LT2M1, REMIC
      2
      Regular Interest LT2M2, REMIC 2 Regular Interest LT2M3, REMIC 2 Regular Interest
      LT2M4, REMIC 2 Regular Interest LT2M5, REMIC 2 Regular Interest LT2M6, REMIC
      2
      Regular Interest LT2M7, REMIC 2 Regular Interest LT2M8, REMIC 2 Regular Interest
      LT2M9, REMIC 2 Regular Interest LT2B1 and REMIC 2 Regular Interest
      LT2ZZ.

    

    
      
         

      

      
        47

        
          

        

      

      
         

      

    

    REMIC
      2 Regular Interests:
      REMIC 2
      Regular Interest LT2AA, REMIC 2 Regular Interest LT2A1, REMIC 2 Regular Interest
      LT2A2, REMIC 2 Regular Interest LT2A3, REMIC 2 Regular Interest LT2M1, REMIC
      2
      Regular Interest LT2M2, REMIC 2 Regular Interest LT2M3, REMIC 2 Regular Interest
      LT2M4, REMIC 2 Regular Interest LT2M5, REMIC 2 Regular Interest LT2M6, REMIC
      2
      Regular Interest LT2M7, REMIC 2 Regular Interest LT2M8, REMIC 2 Regular Interest
      LT2M9, REMIC 2 Regular Interest LT2B1, REMIC 2 Regular Interest LT2P, REMIC
      2
      Regular Interest LT2IO, REMIC 2 Regular Interest LT2CE2 and REMIC 2 Regular
      Interest LT2ZZ as designated in the Preliminary Statement hereto. Each REMIC
      2
      Regular Interest shall accrue interest at the related Uncertificated REMIC
      2
      Pass-Through Rate in effect from time to time, and shall be entitled to
      distributions of principal (other than REMIC 2 Regular Interest LT2IO and REMIC
      2 Regular Interest LT2CE2), 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
      3 Regular Interests:
      Class
      A-1 REMIC 3 Regular Interest, Class A-2 REMIC 3 Regular Interest, Class A-3
      REMIC 3 Regular Interest, Class M-1 REMIC 3 Regular Interest, Class M-2 REMIC
      3
      Regular Interest, Class M-3 REMIC 3 Regular Interest, Class M-4 REMIC 3 Regular
      Interest, Class M-5 REMIC 3 Regular Interest, Class M-6 REMIC 3 Regular
      Interest, Class M-7 REMIC 3 Regular Interest, Class M-8 REMIC 3 Regular
      Interest, Class M-9 REMIC 3 Regular Interest, Class B-1 REMIC 3 Regular
      Interest, Class CE-1 REMIC 3 Regular Interest, Class CE-2 REMIC 3 Regular
      Interest, Class P REMIC 3 Regular Interest and Class SWAP-IO REMIC 3 Regular
      Interest as designated in the Preliminary Statement. Each REMIC 3 Regular
      Interest shall accrue interest at the related Uncertificated REMIC 3
      Pass-Through Rate in effect from time to time, and shall be entitled to
      distributions of principal (other than Class CE-2 REMIC 3 Regular Interest
      and
      Class SWAP-IO REMIC 3 Regular Interest), subject to the terms and conditions
      hereof, in an aggregate amount equal to its initial Uncertificated Principal
      Balance as set forth in the Preliminary Statement hereto or with respect to
      Class CE-1 REMIC 3 Regular Interest, the Class CE-1 Uncertificated Principal
      Balance (in all cases, subject to the obligation of the Class CE-1 Certificates
      to pay Cap Carryover Amounts, Swap Termination Payments and Class SWAP-IO
      Distributions).

    

    REMIC
      3 Cap:
      With
      respect to any Distribution Date, the weighted average (other than with respect
      to calculations in respect of the REMIC Regular Interests corresponding to
      the
      Fixed Rate Certificates, adjusted for the actual number of days in the Interest
      Accrual Period) of the Uncertificated REMIC 2 Pass-Through Rates on the REMIC
      2
      Regular Interests (other than the REMIC 2 Regular Interest LT2IO and REMIC
      2
      Regular Interest LT2CE2), weighted on the basis of the Uncertificated Principal
      Balance of each such REMIC 2 Regular Interest.

    

    REMIC
      Regular Interest:
      Any
      regular interest in REMIC 1, REMIC 2, REMIC 3, REMIC A, REMIC B, REMIC C or
      REMIC D.

    

    Remittance
      Report:
      A
      report prepared by the Servicer and delivered to the Trustee pursuant to
      Section 4.07.

    

    
      
         

      

      
        48

        
          

        

      

      
         

      

    

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

    

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

    

    REO
      Principal Amortization:
      With
      respect to any REO Property, for any calendar month, 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 that is allocable to such REO Property) or otherwise, net of any portion
      of such amounts (i) payable pursuant to Section 3.13 in respect of the
      proper operation, management and maintenance of such REO Property or (ii)
      payable or reimbursable to the Servicer pursuant to Section 3.13 for unpaid
      Servicing Fees and Excess Servicing Fees in respect of the related Mortgage
      Loan
      and unreimbursed Servicing Advances and Advances in respect of such REO Property
      or the related Mortgage Loan.

    

    REO
      Property:
      A
      Mortgaged Property acquired by the Servicer on behalf of the Trust Fund through
      foreclosure or deed-in-lieu of foreclosure, as described in
      Section 3.13.

    

    Reportable
      Event:
      An
      event requiring disclosure on Form 8-K.

    

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

    

    Residential
      Dwelling:
      Any one
      of the following: (i) a one-family dwelling, (ii) a two- to
      four-family dwelling, (iii) a one-family dwelling unit in a Fannie Mae
      eligible condominium project, (iv) a one-family dwelling in a planned unit
      development, which is not a co-operative, or (v) a mobile or manufactured home
      (as defined in 42 United States Code, Section 5402(6)).

    

    Residual
      Certificates:
      The
      Class R and Class R-X Certificates.

    

    Residual
      Interest:
      The
      sole Class of “residual interests” in each REMIC within the meaning of
      Section 860G(a)(2) of the Code.

    

    Responsible
      Officer:
      When
      used with respect to the Trustee, any officer assigned to the Corporate Trust
      Division (or any successor thereto), including any Vice President,
      Assistant Vice President, Trust Officer, any Assistant Secretary, any trust
      officer or any other officer of the Trustee customarily performing functions
      similar to those performed by any of the above designated officers and in each
      case having direct responsibility for the administration of this
      Agreement.

    

    Reuters
      Screen LIBOR01 Page:
      The
      display page currently so designated on the Reuters Monitor Rates Service (or
      such other page as may replace such page on that service for the purpose of
      displaying comparable rates or prices).

    

    S&P:
      Standard & Poor’s, a division of The McGraw-Hill Companies, Inc., and its
      successors, and if such company shall for any reason no longer perform the
      functions of a securities rating agency, “S&P” shall be deemed to refer to
      any other “nationally recognized statistical rating organization” as set forth
      on the most current list of such organizations released by the Securities and
      Exchange Commission.

    

    
      
         

      

      
        49

        
          

        

      

      
         

      

    

    Second
      Lien Mortgage Loan:
      Any of
      the of the Mortgage Loans which are secured by a second mortgage lien that
      is
      junior to a first lien on the related Mortgaged Property.

    

    Seller:
      Credit-Based Asset Servicing and Securitization LLC, or its successor in
      interest, in its capacity as seller under the Mortgage Loan Purchase
      Agreement.

    

    Senior
      Certificates:
      The
      Class A-1, Class A-2 and Class A-3 Certificates.

    

    Senior
      Enhancement Percentage:
      For any
      Distribution Date, the percentage obtained by dividing (x) the sum of (i) the
      aggregate Certificate Principal Balances of the Class M and Class B-1
      Certificates, before taking into account the distribution of the Principal
      Distribution Amount on such Distribution Date and (ii) the Overcollateralization
      Amount, calculated for this purpose only after taking into account the reduction
      of the Certificate Principal Balances of all Classes of Certificates resulting
      from the distribution of the Principal Distribution Amount (but not the Extra
      Principal Distribution Amount), by (y) the Pool Balance as of the last day
      of
      the related Collection Period after giving effect to Principal Prepayments
      in
      the related Prepayment Period.

    

    Senior
      Principal Distribution Amount:
      As of
      any Distribution Date (i) before the Stepdown Date or on which a Trigger Event
      is in effect, the Principal Distribution Amount and (ii) on or after the
      Stepdown Date and as long as a Trigger Event is not in effect, the excess of
      (a)
      the sum of the Certificate Principal Balances of the Class A Certificates
      immediately prior to such Distribution Date over (b) the lesser of (x) the
      product of (1) 57.20% and (2) the Pool Balance as of the last day of the related
      Collection Period after giving effect to Principal Prepayments in the related
      Prepayment Period and (y) the amount by which Pool Balance as of the last day
      of
      the related Collection Period after giving effect to Principal Prepayments
      in
      the related Prepayment Period exceeds the Overcollateralization
      Floor.

    

    Senior
      Specified Enhancement Percentage:
      On any
      date of determination thereof, 42.80%.

    

    Servicer:
      Litton
      Loan Servicing LP, a Delaware limited partnership, or any successor servicer
      appointed as herein provided, in its capacity as Servicer
      hereunder.

    

    Servicer
      Affiliate:
      A
      Person (i) controlling, controlled by or under common control with the
      Servicer or which is 50% or more owned by the Servicer and (ii) which is
      qualified to service residential mortgage loans.

    

    Servicer
      Event of Termination:
      One or
      more of the events described in Section 7.01.

    

    Servicer
      Modification:
      A
      modification to the terms of a Mortgage Loan, in accordance with the terms
      of
      Section 3.01, as to which the Mortgagor is in default or as to which, in the
      judgment of the Servicer, default is reasonably foreseeable.

    

    
      
         

      

      
        50

        
          

        

      

      
         

      

    

    Servicer
      Remittance Date:
      With
      respect to any Distribution Date, one Business Day prior to such Distribution
      Date.

    

    Servicer’s
      Assignee:
      As
      defined in Section 6.05(b) hereof.

    

    Servicing
      Advances:
      All
      customary, reasonable and necessary “out of pocket” costs and expenses
      (including legal fees) incurred 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 the Mortgaged Property,
      (ii) any enforcement or judicial proceedings, including foreclosures,
      (iii) the management and liquidation of the REO Property and
      (iv) compliance with the obligations under Section 3.08.

    

    Servicing
      Criteria:
      The
“servicing criteria” set forth in Item 1122(d) of Regulation AB, as such may be
      amended from time to time a form of which as of the Closing Date is listed
      on
Exhibit
      S.

    

    Servicing
      Fee:
      With
      respect to each Mortgage Loan (including each REO Property) and for any calendar
      month, an amount equal to one month’s interest (or in the event of any payment
      of interest which accompanies a Principal Prepayment in Full made by the
      Mortgagor during such calendar month, interest for the number of days covered
      by
      such payment of interest) at the Servicing Fee Rate on the same principal amount
      on which interest on such Mortgage Loan accrues for such calendar
      month.

    

    Servicing
      Fee Rate:
      So long
      as Litton Loan Servicing LP is the Servicer, with respect to each Mortgage
      Loan,
      0.15% per annum. At anytime Litton Loan Servicing LP is not the Servicer and
      with respect to each Mortgage Loan, 0.50% per annum.

    

    Servicing
      Function Participant:
      Any
      Subservicer, Subcontractor or other Person engaged by the Servicer or the
      Trustee that is participating in the servicing function with respect to the
      Mortgage Loans, within the meaning of Item 1122 of Regulation AB.

    

    Servicing
      Officer:
      Any
      officer of the Servicer involved in, or responsible for, the administration
      and
      servicing of Mortgage Loans, whose name appears on a list of servicing officers
      furnished by the Servicer to the Trustee and the Depositor on the Closing Date,
      as such list may from time to time be amended.

    

    Servicing
      Rights Pledgee:
      One or
      more lenders, selected by the Servicer, to which the Servicer may pledge and
      assign all of its right, title and interest in, to and under this Agreement,
      including JPMorgan Chase Bank, National Association, as the representative
      of
      certain lenders.

    

    Servicing
      Standard:
      Shall
      mean the standards set forth in Section 3.01.

    

    Special
      Hazard Loss:
      Any
      Realized Losses that result from direct physical damage to Mortgaged Properties
      caused by natural disasters and other hazards (i) which are not covered by
      hazard insurance policies (such as earthquakes) and (ii) for which claims have
      been submitted and rejected by the related hazard insurer and any shortfall
      in
      insurance proceeds for partial damage due to the application of the co-insurance
      clauses contained in hazard insurance policies.

    

    
      
         

      

      
        51

        
          

        

      

      
         

      

    

    SPV:
      As
      defined in Section 6.05(b).

    

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

    

    Stayed
      Funds:
      Any
      payment required to be made under the terms of the Certificates and this
      Agreement but which is not remitted by the Servicer because the Servicer is
      the
      subject of a proceeding under the Bankruptcy Code and the making of such
      remittance is prohibited by Section 362 of the Bankruptcy Code.

    

    Stepdown
      Date:
      The
      earlier to occur of (A) the Distribution Date on which the aggregate Certificate
      Principal Balance of the Class A Certificates is reduced to zero, and (B) the
      later to occur of (x) Distribution Date in June 2010, and (y) the first
      Distribution Date on which the Senior Enhancement Percentage is greater than
      or
      equal to the Senior Specified Enhancement Percentage.

    

    Subcontractor:
      Any
      third-party or Affiliated vendor, subcontractor or other Person utilized by
      the
      Servicer, a Subservicer, the Trustee or the Custodian, as applicable, that
      is
      not responsible for the overall servicing (as “servicing” is commonly understood
      by participants in the mortgage-backed securities market) of Mortgage Loans
      but
      performs one or more discrete functions identified in Item 1122(d) of Regulation
      AB with respect to Mortgage Loans.

    

    Subordinated
      Certificates:
      The
      Class M, Class B-1, Class CE-1, Class P and Residual
      Certificates.

    

    Subsequent
      Recovery:
      Any
      amount (net of reimbursable expenses) received on a Mortgage Loan subsequent
      to
      such Mortgage Loan being determined to be a Liquidated Mortgage Loan that
      resulted in a Realized Loss in a prior month.

    

    Subservicer:
      Any
      Person that services Mortgage Loans on behalf of the Servicer or any Subservicer
      and is responsible for the performance (whether directly or through Subservicers
      or Subcontractors) of a substantial portion of the material servicing functions
      required to be performed by the Servicer under this Agreement, with respect
      to
      some or all of the Mortgage Loans, that are identified in Item 1122(d) of
      Regulation AB.

    

    Subservicing
      Accounts:
      As
      defined in Section 3.34.

    

    Subservicing
      Agreements:
      As
      defined in Section 3.30.

    

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

    

    Supplemental
      Interest Trust:
      The
      corpus of a trust created pursuant to Section 4.09 of this Agreement and
      designated as the “Supplemental Interest Trust,” consisting of the Swap
      Agreement, the Cap Agreement, the Swap Account, the Cap Account, the Class
      SWAP-IO REMIC 3 Regular Interest and the right to receive any Net Swap Receipt
      and Swap Termination Payments from the Swap Provider and any Cap Payments from
      the Cap Provider, subject to the obligation to pay the amounts specified in
      Section 4.09. The Supplemental Interest Trust is not an asset of any REMIC
      created hereunder.

    

    
      
         

      

      
        52

        
          

        

      

      
         

      

    

    Supplemental
      Interest Trust Trustee:
      LaSalle
      Bank National Association, a national banking association organized under the
      laws of the United States, in its capacity as trustee of the Supplemental
      Interest Trust, or any successor Supplemental Interest Trust Trustee appointed
      as herein provided.

    

    Swap
      Account:
      The
      trust account created and maintained by the Supplemental Interest Trust Trustee
      pursuant to Section 4.09 which shall be entitled “Swap Account, LaSalle Bank
      National Association, as Supplemental Interest Trust Trustee, in trust for
      registered Holders of C-BASS Mortgage Loan Asset-Backed Certificates, Series
      2007-CB5” and which must be an Eligible Account. Amounts on deposit in the Swap
      Account shall not be invested. The Swap Account shall not be an asset of any
      REMIC formed under this Agreement.

    

    Swap
      Agreement:
      The
      interest rate swap agreement, dated May 31, 2007, between the Swap Provider
      and
      the Supplemental Interest Trust Trustee, a copy of which is attached hereto
      as
Exhibit
      O-2.

    

    Swap
      LIBOR:
      A per
      annum rate equal to the floating rate payable by the Swap Provider under the
      Swap Agreement.

    

    Swap
      Notional Balance:
      With
      respect to each Distribution Date, an amount equal to the amount set forth
      for
      such period on Schedule I of the Swap Agreement.

    

    Swap
      Provider:
      JPMorgan Chase Bank, N.A.

    

    Swap
      Termination Payment:
      Any
      payment payable by the Supplemental Interest Trust or the Swap Provider upon
      termination of the Swap Agreement as a result of an Event of Default (as defined
      in the Swap Agreement) or a Termination Event (as defined in the Swap
      Agreement).

    

    Targeted
      Overcollateralization Amount:
      As of
      any Distribution Date, (x) prior to the Stepdown Date, 2.70% of the Pool Balance
      on the Cut-off Date and (y) on and after the Stepdown Date, (A) if a Trigger
      Event has not occurred, the greater of (x) the lesser of (i) 2.70% of the Pool
      Balance on the Cut-off Date and (ii) 5.40% of the Pool Balance as of the last
      day of the related Collection Period after giving effect to Principal
      Prepayments in the related Prepayment Period and (y) 0.50% of the Pool Balance
      on the Cut-off Date and (B) if a Trigger Event has occurred, the Targeted
      Overcollateralization Amount for the immediately preceding Distribution Date.
      On
      any Distribution Date following the reduction of the aggregate Certificate
      Principal Balance of the Offered Certificates and the Class B-1 Certificates
      to
      zero, the Targeted Overcollateralization Amount shall be zero.

    

    Tax
      Matters Person:
      The tax
      matters person appointed pursuant to Section 9.01(e) hereof.

    

    Tax
      Returns:
      The
      federal income tax returns on Internal Revenue Service Form 1066, U.S. Real
      Estate Mortgage Investment Conduit Income Tax Return, including Schedule Q
      thereto, Quarterly Notice to Residual Interest Holders of the REMIC Taxable
      Income or Net Loss Allocation, or any successor forms, to be filed on behalf
      of
      the Trust for each of the eight REMICs created pursuant to this Agreement 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.

    

    
      
         

      

      
        53

        
          

        

      

      
         

      

    

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

    

    Trigger
      Event:
      With
      respect to any Distribution Date, if (i) the six-month rolling average of 60+
      Day Delinquent Loans equals or exceeds 37.38% of the Senior Enhancement
      Percentage or (ii) the aggregate amount of Realized Losses incurred since the
      Cut-off Date through the last day of the related Collection Period (reduced
      by
      the aggregate amount of Subsequent Recoveries received since the Cut-off Date
      through the last day of the related Collection Period) divided by the Pool
      Balance as of the Cut-off Date exceeds the applicable percentages set forth
      below with respect to such Distribution Date:

     

    
      	
              Distribution
                Date Occurring In

            	
              Percentage

            
	
              June
                2009 through May 2010

            	
              1.50%
                for the first month, plus an additional 1/12th of 2.00% for each
                month
                thereafter,

            
	
              June
                2010 through May 2011

            	
              3.50%
                for the first month, plus an additional 1/12th of 1.95% for each
                month
                thereafter,

            
	
              June
                2011 through May 2012

            	
              5.45%
                for the first month, plus an additional 1/12th of 1.60% for each
                month
                thereafter,

            
	
              June
                2012 through May 2013

            	
              7.05%
                for the first month, plus an additional 1/12th of 0.90% for each
                month
                thereafter,

            
	
              June
                2013 through May 2014

            	
              7.95%
                for the first month, plus an additional 1/12th of 0.15% for each
                month
                thereafter,

            
	
              June
                2014 through May 2015

            	
              8.10%
                for the first month, plus an additional 1/12th of 0.05% for each
                month
                thereafter, and

            
	
              June
                2015 and thereafter

            	
              8.15%

            

    

     

    Trust:
      C-BASS
      2007-CB5 Trust, the trust created hereunder.

    

    Trust
      Fund:
      The
      segregated pool of assets subject hereto, constituting the primary trust created
      hereby and to be administered hereunder, with respect to a portion of which
      eight REMIC elections are to be made, such entire Trust Fund consisting of:
      (i) such Mortgage Loans as from time to time are subject to this Agreement,
      together with the Mortgage Files relating thereto, and together with all
      collections thereon and proceeds thereof, (ii) any REO Property, together
      with all collections thereon and proceeds thereof, (iii) the Trustee’s
      rights with respect to the Mortgage Loans under all insurance policies required
      to be maintained pursuant to this Agreement and any proceeds thereof,
      (iv) the Depositor’s rights under the Mortgage Loan Purchase Agreement
      (including any security interest created thereby) and (v) the Collection
      Account, the Distribution Account, the Cap Carryover Reserve 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.

    

    Trustee:
      LaSalle
      Bank National Association, a national banking association organized under the
      laws of the United States, or any successor Trustee appointed as herein
      provided.

    

    
      
         

      

      
        54

        
          

        

      

      
         

      

    

    Trustee
      Fee:
      With
      respect to any Distribution Date, the product of (x) one-twelfth of the
      Trustee Fee Rate and (y) the aggregate of the Principal Balances of all
      Mortgage Loans as of the opening of business on the first day of the related
      Collection Period.

    

    Trustee
      Fee Rate:
      With
      respect to any Distribution Date, 0.01% per annum.

    

    Uncertificated
      Accrued Interest:
      With
      respect to each REMIC Regular Interest, REMIC 2 Regular Interest or REMIC 3
      Regular Interest (other than Class CE-1 Regular Interest and Class SWAP-IO
      Regular Interest) on each Distribution Date, an amount equal to one month’s
      interest at the related Pass-Through Rate on the Uncertificated Principal
      Balance or Uncertificated Notional Amount of such REMIC Regular Interest. With
      respect to the Class CE REMIC 3 Regular Interest on each Distribution Date,
      an
      amount equal to one month’s interest at its Pass-Through Rate on its Notional
      Amount. In each case, Uncertificated Accrued Interest will be reduced by any
      Relief Act Interest Shortfalls (allocated to such REMIC 1 Regular Interest,
      REMIC 2 Regular Interest, or REMIC 3 Regular Interest based on their respective
      entitlements to interest irrespective of any Relief Act Interest Shortfalls
      for
      such Distribution Date).

    

    Uncertificated
      Notional Amount:
      With
      respect to REMIC 2 Regular Interest LT2IO and each Distribution Date listed
      below, a notional amount equal to the aggregate Uncertificated Principal Balance
      of the REMIC 1 Regular Interests ending with the designation “A” listed
      below:

    
      	
              Distribution
                Date

            	 	
              REMIC
                1 Regular Interests

            
	
              1

            	 	
              I-1-A
                through I-47-A

            
	
              2

            	 	
              I-2-A
                through I-47-A

            
	
              3

            	 	
              I-3-A
                through I-47-A

            
	
              4

            	 	
              I-4-A
                through I-47-A

            
	
              5

            	 	
              I-5-A
                through I-47-A

            
	
              6

            	 	
              I-6-A
                through I-47-A

            
	
              7

            	 	
              I-7-A
                through I-47-A

            
	
              8

            	 	
              I-8-A
                through I-47-A

            
	
              9

            	 	
              I-9-A
                through I-47-A

            
	
              10

            	 	
              I-10-A
                through I-47-A

            
	
              11

            	 	
              I-11-A
                through I-47-A

            
	
              12

            	 	
              I-12-A
                through I-47-A

            
	
              13

            	 	
              I-13-A
                through I-47-A

            
	
              14

            	 	
              I-14-A
                through I-47-A

            
	
              15

            	 	
              I-15-A
                through I-47-A

            
	
              16

            	 	
              I-16-A
                through I-47-A

            
	
              17

            	 	
              I-17-A
                through I-47-A

            
	
              18

            	 	
              I-18-A
                through I-47-A

            
	
              19

            	 	
              I-19-A
                through I-47-A

            
	
              20

            	 	
              I-20-A
                through I-47-A

            
	
              21

            	 	
              I-21-A
                through I-47-A

            
	
              22

            	 	
              I-22-A
                through I-47-A

            
	
              23

            	 	
              I-23-A
                through I-47-A

            
	
              24

            	 	
              I-24-A
                through I-47-A

            
	
              25

            	 	
              I-25-A
                through I-47-A

            
	
              26

            	 	
              I-26-A
                through I-47-A

            
	
              27

            	 	
              I-27-A
                through I-47-A

            
	
              28

            	 	
              I-28-A
                through I-47-A

            
	
              29

            	 	
              I-29-A
                through I-47-A

            
	
              30

            	 	
              I-30-A
                through I-47-A

            
	
              31

            	 	
              I-31-A
                through I-47-A

            
	
              32

            	 	
              I-32-A
                through I-47-A

            

    

    

    

    
      
         

      

      
        55

        
          

        

      

      
         

      

    

    

    
      	
              Distribution
                Date

            	 	
              REMIC
                1 Regular Interests

            
	
              33

            	 	
              I-33-A
                through I-47-A

            
	
              34

            	 	
              I-34-A
                through I-47-A

            
	
              35

            	 	
              I-35-A
                through I-47-A

            
	
              36

            	 	
              I-36-A
                through I-47-A

            
	
              37

            	 	
              I-37-A
                through I-47-A

            
	
              38

            	 	
              I-38-A
                through I-47-A

            
	
              39

            	 	
              I-39-A
                through I-47-A

            
	
              40

            	 	
              I-40-A
                through I-47-A

            
	
              41

            	 	
              I-41-A
                through I-47-A

            
	
              42

            	 	
              I-42-A
                through I-47-A

            
	
              43

            	 	
              I-43-A
                through I-47-A

            
	
              44

            	 	
              I-44-A
                through I-47-A

            
	
              45

            	 	
              I-45-A
                through I-47-A

            
	
              46

            	 	
              I-46-A
                through I-47-A

            
	
              47

            	 	
              I-47-A

            
	
              Thereafter

            	 	
              $0.00

            

    

     

    With
      respect to the Class SWAP-IO Interest and any Distribution Date, an amount
      equal
      to the Uncertificated Notional Amount of REMIC 2 Regular Interest
      LT2IO.

    

    With
      respect to the REMIC 1 Regular Interest I-CE-2, REMIC 2 Regular Interest LT2CE2
      and Class CE-2 REMIC 3 Regular Interest, the sum of the aggregate principal
      balances of the Mortgage Loans serviced by Litton Loan Servicing LP pursuant
      to
      the terms of this Agreement for such Distribution Date.

    

    Uncertificated
      Principal Balance:
      The
      principal amount of any REMIC Regular Interest outstanding as of any date of
      determination. As of the Closing Date, the Uncertificated Principal Balance
      of
      each REMIC Regular Interest shall equal the amount set forth in the Preliminary
      Statement hereto as its initial uncertificated principal balance. On each
      Distribution Date, the Uncertificated Principal Balance of each REMIC Regular
      Interest shall be reduced by all distributions of principal made on such REMIC
      Regular Interest on such Distribution Date pursuant to Section 4.08 and, if
      and
      to the extent necessary and appropriate, shall be further reduced on such
      Distribution Date by Realized Losses as provided in Section 4.08(b) and shall
      be
      increased by all Subsequent Recoveries allocated to such REMIC Regular Interest
      on such Distribution Date pursuant to Section 4.08. The Uncertificated Principal
      Balance of REMIC 2 Regular Interest LT2ZZ shall be increased by interest
      deferrals as provided in Section 4.08(a)(i). The Uncertificated Principal
      Balance of each REMIC 2 Regular Interest shall never be less than
      zero.

    

    Uncertificated
      REMIC 1 Pass-Through Rate:
      With
      respect to REMIC 1 Regular Interest I, a per annum rate equal to the weighted
      average of the Net Mortgage Interest Rates of the Mortgage Loans. With respect
      to each REMIC 1 Regular Interest ending with the designation “A”, a per annum
      rate equal to the weighted average of the Net Mortgage Interest Rates of the
      Mortgage Loans multiplied by 2, subject to a maximum rate of the Fixed Payer
      Rate multiplied by 2. With respect to each REMIC 1 Regular Interest ending
      with
      the designation “B”, a per annum rate equal to the excess, if any, of (i) 2
      multiplied by the weighted average of the Net Mortgage Interest Rates of the
      Mortgage Loans over (ii) the Fixed Payer Rate multiplied by 2 (or 0.00% if
      there
      is no such excess). With respect to the REMIC 1 Regular Interest I-CE-2, a
      weighted average per annum rate, determined on a Mortgage Loan by Mortgage
      Loan
      basis (and solely with respect to the Mortgage Loans serviced by Litton Loan
      Servicing LP pursuant to the terms of this Agreement), equal to the excess,
      if
      any, of (i) the excess of (a) the Mortgage Interest Rate for each such Mortgage
      Loan over (b) the sum of the (x) Servicing Fee Rate and (y) Trustee Fee Rate,
      over (ii) the Net Mortgage Interest Rate of each such Mortgage
      Loan.

    

    
      
         

      

      
        56

        
          

        

      

      
         

      

    

    Uncertificated
      REMIC 2 Pass-Through Rate:
      With
      respect to REMIC 2 Regular Interest LT2AA, REMIC 2 Regular Interest LT2A1,
      REMIC
      2 Regular Interest LT2A2, REMIC 2 Regular Interest LT2A3, REMIC 2 Regular
      Interest LT2M1, REMIC 2 Regular Interest LT2M2, REMIC 2 Regular Interest LT2M3,
      REMIC 2 Regular Interest LT2M4, REMIC 2 Regular Interest LT2M5, REMIC 2 Regular
      Interest LT2M6, REMIC 2 Regular Interest LT2M7, REMIC 2 Regular Interest LT2M8,
      REMIC 2 Regular Interest LT2M9, REMIC 2 Regular Interest LT2B1, REMIC 2 Regular
      Interest LT2P and REMIC 2 Regular Interest LT2ZZ, a per annum rate (but not
      less
      than zero) equal to the weighted average of: (x) with respect to REMIC 1 Regular
      Interest I and each REMIC 1 Regular Interest ending with the designation “B”,
      the weighted average of the Uncertificated REMIC 1 Pass-Through Rates for such
      REMIC 1 Regular Interests, weighted on the basis of the Uncertificated Principal
      Balances of such REMIC 1 Regular Interests for each such Distribution Date
      and
      (y) with respect to REMIC 1 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 1 Regular Interest listed below, weighted
      on
      the basis of the Uncertificated Principal Balances of each such REMIC 1 Regular
      Interest for each such Distribution Date:

     

    
      	
              Distribution
                Date

            	 	
              REMIC
                1 Regular Interest

            	 	
              Rate

            
	
              1

            	 	
              I-1-A
                through I-47-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	 	 	 	 
	
              2

            	 	
              I-2-A
                through I-47-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	 	 	 	 
	 	 	
              I-1-A

            	 	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	 	 	 	 
	
              3

            	 	
              I-3-A
                through I-47-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	 	 	 	 
	 	 	
              I-1-A
                and I-2-A

            	 	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	 	 	 	 
	
              4

            	 	
              I-4-A
                through I-47-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	 	 	 	 
	 	 	
              I-1-A
                through I-3-A

            	 	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	 	 	 	 
	
              5

            	 	
              I-5-A
                through I-47-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	 	 	 	 
	 	 	
              I-1-A
                through I-4-A

            	 	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	 	 	 	 
	
              6

            	 	
              I-6-A
                through I-47-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	 	 	 	 
	 	 	
              I-1-A
                through I-5-A

            	 	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	 	 	 	 
	
              7

            	 	
              I-7-A
                through I-47-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	 	 	 	 
	 	 	
              I-1-A
                through I-6-A

            	 	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	 	 	 	 
	
              8

            	 	
              I-8-A
                through I-47-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC 1 Pass-Through Rate

            

    

    

      
        
           

        

        
          57

          
            

          

        

        
           

        

      

    
      	
              Distribution
                Date

            	 	
              REMIC
                1 Regular Interest

            	 	
              Rate

            
	 	 	 	 	 
	 	 	
              I-1-A
                through I-7-A

            	 	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	 	 	 	 
	
              9

            	 	
              I-9-A
                through I-47-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	 	 	 	 
	 	 	
              I-1-A
                through I-8-A

            	 	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	 	 	 	 
	
              10

            	 	
              I-10-A
                through I-47-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	 	 	 	 
	 	 	
              I-1-A
                through I-9-A

            	 	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	 	 	 	 
	
              11

            	 	
              I-11-A
                through I-47-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	 	 	 	 
	 	 	
              I-1-A
                through I-10-A

            	 	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	 	 	 	 
	
              12

            	 	
              I-12-A
                through I-47-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC 1 Pass-Through Rate

               

            
	 	 	 	 	 
	 	 	
              I-1-A
                through I-11-A

            	 	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	 	 	 	 
	
              13

            	 	
              I-13-A
                through I-47-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	 	 	 	 
	 	 	
              I-1-A
                through I-12-A

            	 	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	 	 	 	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              14

            	 	
              I-14-A
                through I-47-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	 	 	 	 
	 	 	
              I-1-A
                through I-13-A

            	 	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	 	 	 	 
	
              15

            	 	
              I-15-A
                through I-47-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	 	 	 	 
	 	 	
              I-1-A
                through I-14-A

            	 	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	 	 	 	 
	
              16

            	 	
              I-16-A
                through I-47-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	 	 	 	 
	 	 	
              I-1-A
                through I-15-A

            	 	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	 	 	 	 
	
              17

            	 	
              I-17-A
                through I-47-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	 	 	 	 
	 	 	
              I-1-A
                through I-16-A

            	 	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	 	 	 	 
	
              18

            	 	
              I-18-A
                through I-47-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	 	 	 	 
	 	 	
              I-1-A
                through I-17-A

            	 	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	 	 	 	 
	
              19

            	 	
              I-19-A
                through I-47-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	 	 	 	 
	 	 	
              I-1-A
                through I-18-A

            	 	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	 	 	 	 
	
              20

            	 	
              I-20-A
                through I-47-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	 	 	 	 
	 	 	
              I-1-A
                through I-19-A

            	 	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	 	 	 	 
	
              21

            	 	
              I-21-A
                through I-47-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	 	 	 	 
	 	 	
              I-1-A
                through I-20-A

            	 	
              Uncertificated
                REMIC 1 Pass-Through Rate

            

    

    

    

    
      
         

      

      
        58

        
          

        

      

      
         

      

    

    

    
      	
              Distribution
                Date

            	 	
              REMIC
                1 Regular Interest

            	 	
              Rate

            
	 	 	 	 	 
	
              22

            	 	
              I-22-A
                through I-47-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	 	 	 	 
	 	 	
              I-1-A
                through I-21-A

            	 	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	 	 	 	 
	
              23

            	 	
              I-23-A
                through I-47-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	 	 	 	 
	 	 	
              I-1-A
                through I-22-A

            	 	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	 	 	 	 
	
              24

            	 	
              I-24-A
                through I-47-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	 	 	 	 
	 	 	
              I-1-A
                through I-23-A

            	 	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	 	 	 	 
	
              25

            	 	
              I-25-A
                through I-47-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	 	 	 	 
	 	 	
              I-1-A
                through I-24-A

            	 	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	 	 	 	 
	
              26

            	 	
              I-26-A
                through I-47-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	 	 	 	 
	 	 	
              I-1-A
                through I-25-A

            	 	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	 	 	 	 
	
              27

            	 	
              I-27-A
                through I-47-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	 	 	 	 
	 	 	
              I-1-A
                through I-26-A

            	 	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	 	 	 	 
	
              28

            	 	
              I-28-A
                through I-47-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	 	 	 	 
	 	 	
              I-1-A
                through I-27-A

            	 	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	 	 	 	 
	
              29

            	 	
              I-29-A
                through I-47-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	 	 	 	 
	 	 	
              I-1-A
                through I-28-A

            	 	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	 	 	 	 
	
              30

            	 	
              I-30-A
                through I-47-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	 	 	 	 
	 	 	
              I-1-A
                through I-29-A

            	 	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	 	 	 	 
	
              31

            	 	
              I-31-A
                through I-47-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	 	 	 	 
	 	 	
              I-1-A
                through I-30-A

            	 	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	 	 	 	 
	
              32

            	 	
              I-32-A
                through I-47-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	 	 	 	 
	 	 	
              I-1-A
                through I-31-A

            	 	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	 	 	 	 
	
              33

            	 	
              I-33-A
                through I-47-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	 	 	 	 
	 	 	
              I-1-A
                through I-32-A

            	 	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	 	 	 	 
	
              34

            	 	
              I-34-A
                through I-47-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	 	 	 	 
	 	 	
              I-1-A
                through I-33-A

            	 	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	 	 	 	 
	
              35

            	 	
              I-35-A
                through I-47-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC 1 Pass-Through Rate

            

    

    

    

    
      
         

      

      
        59

        
          

        

      

      
         

      

    

    

    
      	
              Distribution
                Date

            	 	
              REMIC
                1 Regular Interest

            	 	
              Rate

            
	 	 	 	 	 
	 	 	
              I-1-A
                through I-34-A

            	 	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	 	 	 	 
	
              36

            	 	
              I-36-A
                through I-47-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	 	 	 	 
	 	 	
              I-1-A
                through I-35-A

            	 	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	 	 	 	 
	
              37

            	 	
              I-37-A
                through I-47-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	 	 	 	 
	 	 	
              I-1-A
                through I-36-A

            	 	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	 	 	 	 
	
              38

            	 	
              I-38-A
                through I-47-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	 	 	 	 
	 	 	
              I-1-A
                through I-37-A

            	 	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	 	 	 	 
	
              39

            	 	
              I-39-A
                through I-47-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	 	 	 	 
	 	 	
              I-1-A
                through I-38-A

            	 	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	 	 	 	 
	
              40

            	 	
              I-40-A
                through I-47-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	 	 	 	 
	 	 	
              I-1-A
                through I-39-A

            	 	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	 	 	 	 
	
              41

            	 	
              I-41-A
                through I-47-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	 	 	 	 
	 	 	
              I-1-A
                through I-40-A

            	 	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	 	 	 	 
	
              42

            	 	
              I-42-A
                through I-47-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	 	 	 	 
	 	 	
              I-1-A
                through I-41-A

            	 	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	 	 	 	 
	
              43

            	 	
              I-43-A
                through I-47-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	 	 	 	 
	 	 	
              I-1-A
                through I-42-A

            	 	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	 	 	 	 
	
              44

            	 	
              I-44-A
                through I-47-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	 	 	 	 
	 	 	
              I-1-A
                through I-43-A

            	 	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	 	 	 	 
	
              45

            	 	
              I-45-A
                through I-47-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	 	 	 	 
	 	 	
              I-1-A
                through I-44-A

            	 	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	 	 	 	 
	
              46

            	 	
              I-46-A
                and I-47-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	 	 	 	 
	 	 	
              I-1-A
                through I-45-A

            	 	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	 	 	 	 
	
              47

            	 	
              I-47-A

            	 	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	 	 	 	 
	 	 	
              I-1-A
                through I-46-A

            	 	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	 	 	 	 
	 	 	 	 	 
	
              thereafter

            	 	
              I-1-A
                through I-47-A

            	 	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	 	 	 	 

    

    

    

    
      
         

      

      
        60

        
          

        

      

      
         

      

    

    With
      respect to REMIC 2 Regular Interest LT2IO, and (i) the first Distribution Date
      through the 47th Distribution Date, the excess, if any, of (x) the weighted
      average of the Uncertificated REMIC 1 Pass-Through Rates for REMIC 1 Regular
      Interests including the designation “A,” over (y) 2 multiplied by Swap LIBOR (or
      0.00% if there is no such excess) and (ii) thereafter, 0.00%.

    

    With
      respect to the REMIC 2 Regular Interest LT2CE2, REMIC 2 Regular Interest LT2CE2
      will be entitled to 100% of the amounts distributable with respect to the REMIC
      1 Regular Interest I-CE-2.

    

    Uncertificated
      REMIC 3 Pass-Through Rate:
      As set
      forth in the Preliminary Statement.

    

    Underwriters:
      Banc of
      America Securities LLC and Barclays Capital Inc., as underwriters with respect
      to the Offered Certificates.

    

    Underwriter’s
      Exemption:
      Any
      exemption listed in footnote 1 of, and amended by, PTCE 2007-05 at 72 Fed.
      Reg.
      13130 (March 20, 2007) or any substantially similar successor administrative
      exemption granted by the U.S. Department of Labor.

    

    United
      States Person
      or
U.S.
      Person:
      (i) A citizen or resident of the United States, (ii) a corporation,
      partnership or other entity treated as a corporation or partnership for United
      States federal income tax purposes organized in or under the laws of the United
      States or any state thereof or the District of Columbia (unless, in the case
      of
      a partnership, Treasury regulations provide otherwise) or (iii) an estate
      the income of which is includible in gross income for United States tax
      purposes, regardless of its source, or (iv) a trust if a court within the
      United States is able to exercise primary supervision over the
      administration of the trust and one or more United States persons have authority
      to control all substantial decisions of the trust. Notwithstanding the preceding
      sentence, to the extent provided in Treasury regulations, certain Trusts in
      existence on August 20, 1996, and treated as United States persons prior to
      such date, that elect to continue to be treated as United States persons will
      also be a U.S. Person; provided, that for purposes of the definition of a
“Permitted Transferee,” a U.S. Person shall not include any person whose income
      is attributable to a foreign permanent establishment or fixed base, within
      the
      meaning of an applicable income tax treaty, of such Person or any other
      Person.

    

    Unpaid
      Realized Loss Amount:
      For any
      Class M and Class B-1 Certificates and as to any Distribution Date, the excess
      of (x) the cumulative amount of related Applied Realized Loss Amounts with
      respect to such Class for all prior Distribution Dates over (y) the sum of
      (a) the cumulative amount of any Subsequent Recoveries allocated to such
      Class, (b) the aggregate Realized Loss Amortization Amounts with respect to
      such
      Class for all prior Distribution Dates and (c) the cumulative amount of Unpaid
      Realized Loss Amounts reimbursed to such Class for all prior Distribution Dates
      from the Supplemental Interest Trust.

    

    Value:
      With
      respect to any Mortgaged Property, the lower of the value thereof as determined
      by an independent appraisal made at the time of the origination of the related
      Mortgage Loan or the sale price.

    

    Voting
      Rights:
      The
      portion of the voting rights of all of the Certificates which is allocated
      to
      any Certificate. The Voting Rights allocated among Holders of the Certificates
      (other than the Class CE-1, Class CE-2, Class P and Residual Certificates)
      shall
      be 98%, and shall be allocated among each such Class according to the fraction,
      expressed as a percentage, the numerator of which is the aggregate Certificate
      Principal Balance of all the Certificates of such Class then outstanding and
      the
      denominator of which is the aggregate Certificate Principal Balance of all
      the
      Certificates (other than the Class CE-1, Class CE-2, Class P and Residual
      Certificates) then outstanding. The Voting Rights allocated to each such Class
      of Certificates shall be allocated among all holders of each such Class in
      proportion to the outstanding Certificate Principal Balance of such
      Certificates; provided,
      however,
      that
      any Certificate registered in the name of the Servicer, the Depositor or the
      Trustee or any of their respective affiliates shall not be included in the
      calculation of Voting Rights; provided that only such Certificates as are known
      by a Responsible Officer of the Trustee to be so registered will be so excluded.
      The percentage of all the Voting Rights allocated among the Holders of the
      Class
      CE-1 and Class P Certificates shall be 2%. The Class CE-2 and Residual
      Certificates shall have no Voting Rights.

    

    
      
         

      

      
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    Weighted
      Average Net Mortgage Rate:
      The
      weighted average (based on Principal Balance as of the first day of the related
      Collection Period or, in the case of the first Distribution Date, the Cut-Off
      Date) of the Net Mortgage Interest Rates of the Mortgage Loans, expressed as
      an
      annual rate and calculated on the basis of twelve months consisting of 30 days
      each and a 360-day year.

    

    Written
      Order to Authenticate:
      A
      written order by which the Depositor directs the Trustee to execute,
      authenticate and deliver the Certificates.

    

    Section
      1.02. Accounting.

    

    Unless
      otherwise specified herein, for the purpose of any definition or calculation,
      whenever amounts are required to be netted, subtracted or added or any
      distributions are taken into account such definition or calculation and any
      related definitions or calculations shall be determined without duplication
      of
      such functions.

    

    ARTICLE
      II

    

    CONVEYANCE
      OF MORTGAGE LOANS;

    ORIGINAL
      ISSUANCE OF CERTIFICATES

    

    Section
      2.01. Conveyance
      of Mortgage Loans.

    

    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 (i) each Mortgage Loan identified
      on the Mortgage Loan Schedule, including the related Cut-off Date Principal
      Balance, all interest accruing thereon after the Cut-off Date and all
      collections in respect of interest and principal due after the Cut-off Date;
      (ii) property which secured each such Mortgage Loan and which has been
      acquired by foreclosure or deed in lieu of foreclosure; (iii) its interest
      in any insurance policies in respect of the Mortgage Loans; (iv) all
      proceeds of any of the foregoing; (v) the rights of the Depositor under the
      Mortgage Loan Purchase Agreement, and (vi) all other assets included or to
      be included in the Trust Fund. Such assignment includes all interest and
      principal due to the Depositor or the Servicer after the Cut-off Date with
      respect to the Mortgage Loans. On the Closing Date, the Depositor shall pay,
      without any right of reimbursement from the Trust, to the Cap Provider the
      “Fixed Amount” (as defined in the Cap Agreement) due and payable to the Cap
      Provider pursuant to the terms of the Cap Agreement.

    

    
      
         

      

      
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    It
      is
      agreed and understood by the parties hereto that it is not intended that any
      mortgage loan be included in the Trust that is a “High-Cost Home Loan” as
      defined in any
      of (i) the
      New Jersey Home Ownership Act effective November 27, 2003, (ii) the
      New Mexico Home Loan Protection Act effective January 1, 2004, (iii) the
      Massachusetts Predatory Home Loan Practices Act effective November 7, 2004,
      (iv)
      the Indiana Home Loan Practices Act, effective January 1, 2005 or (v) the
      Illinois High Risk Home Loan Act, effective January 1, 2004.

    

    In
      connection with such transfer and assignment, the Seller, on behalf of the
      Depositor, does hereby deliver to, and deposit with the Custodian, the following
      documents or instruments with respect to each Mortgage Loan (a “Mortgage
      File”)
      so
      transferred and assigned:

    

    (i) the
      original Mortgage Note, endorsed either (A) in blank or (B) in the
      following form: “Pay to the order of LaSalle Bank National Association, as
      Trustee for the C-BASS Mortgage Loan Asset-Backed Certificates, Series 2007-CB5,
      without recourse,” or with respect to any lost Mortgage Note, an original Lost
      Note Affidavit, together with a copy of the related Mortgage Note;

    

    (ii) the
      original Mortgage with evidence of recording thereon, and the original recorded
      power of attorney, if the Mortgage was executed pursuant to a power of attorney,
      with evidence of recording thereon or, if such Mortgage or power of attorney
      has
      been submitted for recording but has not been returned from the applicable
      public recording office, has been lost or is not otherwise available, a copy
      of
      such Mortgage or power of attorney, as the case may be, certified to be a true
      and complete copy of the original submitted for recording;

    

    (iii) an
      original Assignment of Mortgage, in form and substance acceptable for recording.
      The Mortgage shall be assigned either (A) in blank or (B) to “LaSalle
      Bank National Association, as Trustee for the C-BASS Mortgage Loan Asset-Backed
      Certificates, Series 2007-CB5, without recourse”;

    

    (iv) an
      original or copy of any intervening assignment of Mortgage showing a complete
      chain of assignments;

    

    (v) the
      original or a certified copy of lender’s title insurance policy except with
      respect to those Mortgage Loans identified on Exhibit
      Q
      hereto;
      and

    

    (vi) the
      original or copies of each assumption, modification, written assurance or
      substitution agreement, if any.

    

    On
      or
      prior to the Closing Date, the Custodian agrees, pursuant to the terms of the
      Custodial Agreement, to deliver to the Depositor an acknowledgment of receipt
      of
      the original Mortgage Note (with any exceptions noted), substantially in the
      form attached as Exhibit
      F-3
      hereto.

    

    
      
         

      

      
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    If
      any of the documents referred to in Section 2.01(ii), (iii) or
      (iv) above has as of the Closing Date 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 to deliver such documents shall
      be deemed to be satisfied upon (1) delivery to the Custodian no later than
      the Closing Date, of a copy of each such document certified by the Seller in
      the
      case of (x) above or the applicable public recording office in the case of
      (y) above
      to be a true and complete copy of the original that was submitted for recording
      and (2) if such copy is certified by the Seller, delivery to the Custodian,
      promptly upon receipt thereof 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. The Seller shall deliver or cause to be delivered to
      the
      Custodian promptly upon receipt thereof any other documents constituting a
      part
      of a Mortgage File received with respect to any Mortgage Loan, including, but
      not limited to, any original documents evidencing an assumption or modification
      of any Mortgage Loan.

    

    Upon
      discovery or receipt of notice of any materially defective document in, or
      that
      a document is missing from, a Mortgage File, the Seller shall have 120 days
      to
      cure such defect or 150 days following the Closing Date, in the case of missing
      Mortgages or Assignments or deliver such missing document to the Trustee or
      the
      Custodian. If the Seller does not cure such defect or deliver such missing
      document within such time period and such defect or the absence of such document
      materially and adversely affects Certificateholders, the Seller shall either
      repurchase or substitute for such Mortgage Loan in accordance with
      Section 2.03.

    

    The
      Servicer shall cause the Assignments of Mortgage which were delivered in blank
      to be completed and shall cause all Assignments referred to in
      Section 2.01(iii) hereof and, to the extent necessary, in
      Section 2.01(iv) hereof to be recorded at the expense of the Servicer;
provided,
      however,
      the
      Servicer need not cause to be recorded any Assignment which relates to a
      Mortgage Loan in any jurisdiction under the laws of which, as evidenced by
      an
      Opinion of Counsel delivered by the Servicer to the Trustee and the Rating
      Agencies, the recordation of such assignment is not necessary to protect the
      Trustee’s interest, on behalf of the Trust, in the related Mortgage Loan. The
      Servicer shall be required to deliver such assignments for recording within
      30
      days of the Closing Date. The Servicer shall furnish the Custodian with a copy
      of each assignment of Mortgage submitted for recording. In the event that any
      such Assignment is lost or returned unrecorded because of a defect therein,
      the
      Servicer shall promptly have a substitute Assignment prepared or have such
      defect cured, as the case may be, and thereafter cause each such Assignment
      to
      be duly recorded. In the event that any Mortgage Note is endorsed in blank
      as of
      the Closing Date, promptly following the Closing Date the Servicer shall cause
      to be completed such endorsements “Pay to the order of LaSalle Bank National
      Association, as Trustee for the C-BASS Mortgage Loan Asset-Backed Certificates,
      Series 2007-CB5, without recourse.”

    

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

    

    
      
         

      

      
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    Section
      2.02. Acceptance
      by Trustee.

    

    The
      Trustee acknowledges the Custodian’s receipt of, subject to the provisions of
      Section 2.01 and subject to the review described below and any exceptions noted
      on the exception report described in this Section
      2.02,
      the
      Mortgage File and declares that the Custodian holds and will hold the documents
      delivered to it constituting a Mortgage File, and that the Custodian holds
      or
      will hold all such assets in trust for the exclusive use and benefit of all
      present and future Certificateholders.

    

    The
      Trustee acknowledges the receipt of, subject to the provisions of Section 2.01
      and the
      preceding paragraph, the assets included in the definition of “Trust Fund” and
      declares that it holds and will hold the assets included in the definition
      of
“Trust Fund” in trust for the exclusive use and benefit of all present and
      future Certificateholders.

    

    Pursuant
      to the terms of the Custodial Agreement, the Custodian shall review each
      Mortgage File within 60 days after the Closing Date (or, with respect to any
      document delivered after the Startup Day, within 60 days of receipt and with
      respect to any Qualified Substitute Mortgage, within 60 days after the
      assignment thereof) and certify in substantially the form attached hereto as
      Exhibit
      F-1
      that, as
      to each Mortgage Loan listed in the Mortgage Loan Schedule (other than any
      Mortgage Loan paid in full or any Mortgage Loan specifically identified in
      the
      exception report annexed thereto as not being covered by such certification),
      (i) all documents required to be delivered to it pursuant to
      Section 2.01 of this Agreement are in its possession, (ii) such
      documents have been reviewed by it and have not been mutilated, damaged or
      torn
      and relate to such Mortgage Loan and (iii) based on its examination and
      only as to the foregoing, the information set forth in the Mortgage Loan
      Schedule that corresponds to items (1), (2), (3), (5), (13) and (23) (in the
      case of (23), only as to whether there is a Prepayment Penalty) of the Mortgage
      Loan Schedule accurately reflects information set forth in the Mortgage File.
      It
      is herein acknowledged that, in conducting such review, the Custodian is under
      no duty or obligation to inspect, review or examine any such documents,
      instruments, certificates or other papers to determine that they are genuine,
      enforceable, or appropriate for the represented purpose or that they have
      actually been recorded or that they are other than what they purport to be
      on
      their face.

    

    Prior
      to
      the first anniversary date of this Agreement the Custodian agrees, pursuant
      to
      the terms of the Custodial Agreement, to deliver to the Depositor and the
      Servicer a final certification in the form annexed hereto as Exhibit F-2
      evidencing the completeness of the Mortgage Files, with any applicable
      exceptions noted thereon.

    

    If
      in the
      process of reviewing the Mortgage Files and making or preparing, as the case
      may
      be, the certifications referred to above, the Custodian finds any document
      or
      documents constituting a part of a Mortgage File to be missing or defective
      in
      any material respect, at the conclusion of its review the Custodian, pursuant
      to
      the terms of the Custodial Agreement, shall so notify the Seller, the Depositor,
      the Trustee and the Servicer. In addition, upon the discovery by the Seller,
      Depositor, the Trustee or the Servicer (or upon receipt by the Trustee of
      written notification of such breach) of a breach of any of the representations
      and warranties made by the Seller in the related Mortgage Loan Purchase
      Agreement in respect of any Mortgage Loan which materially adversely affects
      such Mortgage Loan or the interests of the related Certificateholders in such
      Mortgage Loan, the party discovering such breach shall give prompt written
      notice to the other parties.

    

    
      
         

      

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

    

    The
      Trustee is hereby directed to execute, deliver and perform its obligations
      under
      the Swap Agreement and the Cap Agreement as Supplemental Interest Trust Trustee
      on behalf of the Supplemental Interest Trust (including making any
      representations on behalf of the Supplemental Interest Trust) in the forms
      presented to it by the Depositor. The Seller, the Servicer and the Depositor
      acknowledge and agree that (i) the Trustee shall execute, deliver and perform
      its obligations under the Swap Agreement and the Cap Agreement and shall do
      so
      solely in its capacity as Supplemental Interest Trust Trustee of the
      Supplemental Interest Trust and not in its individual capacity, and
      (ii) the Trustee shall have no responsibility for the contents of such Swap
      Agreement and the Cap Agreement, including, without limitation, the
      representations and warranties contained therein. Any funds payable by the
      Supplemental Interest Trust or Supplemental Interest Trust Trustee under the
      Swap Agreement and the Cap Agreement at closing shall be paid by the Depositor.
      Notwithstanding anything to the contrary contained herein or in the Swap
      Agreement and the Cap Agreement, neither the Trustee nor the Supplemental
      Interest Trust Trustee shall be required to make any payments to the Cap
      Provider or Swap Provider.

    

    Section
      2.03. Repurchase
      or Substitution of Mortgage Loans by the Seller.

    

    (a) Upon
      discovery or receipt of written notice of any materially defective document
      in,
      or that a document is missing from, a Mortgage File or of the breach by the
      Seller of any representation, warranty or covenant under the Mortgage Loan
      Purchase Agreement or in Section 2.04 in respect of any Mortgage Loan, the
      Trustee (or the Custodian, as applicable) shall promptly notify the Seller,
      the
      Servicer and the Trustee of such defect, missing document or breach and request
      that the Seller deliver such missing document or cure such defect or breach
      within 120 days or 150 days following the Closing Date, in the case of missing
      Mortgages or Assignments from the date the Seller was notified of such missing
      document, defect or breach, and if the Seller does not deliver such missing
      document or cure such defect or breach in all material respects during such
      period and such missing document, defect or breach materially and adversely
      affects Certificateholders, the Trustee shall enforce the Seller’s obligation
      under the Mortgage Loan Purchase Agreement and cause the Seller to repurchase
      such Mortgage Loan from the Trust Fund at the Purchase Price on or prior to
      the
      Determination Date following the expiration of such 120 day period (subject
      to
      Section 2.03(e)); provided that, in connection with any such breach that
      could not reasonably have been cured within such 120 day or 150 day period,
      if
      the Seller shall have commenced to cure such breach within such 120 day or
      150
      day period, the Seller shall be permitted to proceed thereafter diligently
      and
      expeditiously to cure the same within the additional period provided under
      the
      Mortgage Loan Purchase Agreement. The Purchase Price for the repurchased
      Mortgage Loan shall be deposited in the Collection Account, and the Custodian,
      upon receipt of written certification from the Servicer of such deposit, shall
      release to the Seller the related Mortgage File and shall execute and deliver
      such instruments of transfer or assignment, in each case without recourse,
      as
      the Seller shall furnish to it and as shall be necessary to vest in the Seller
      any Mortgage Loan released pursuant hereto and the Custodian shall have no
      further responsibility with regard to such Mortgage File. In lieu of
      repurchasing any such Mortgage Loan as provided above, the Seller may cause
      such
      Mortgage Loan to be removed from the Trust Fund (in which case it shall become
      a
      Defective Mortgage Loan) and substitute one or more Eligible Substitute Mortgage
      Loans in the manner and subject to the limitations set forth in
      Section 2.03(d). In addition to the foregoing, in the case of a breach of
      the Seller’s representation set forth in Section 3.01(f) or 3.01(yy) of the
      Mortgage Loan Purchase Agreement, the Seller shall reimburse the Trust for
      all
      costs or damages incurred by the Trust as a result of the violation of such
      law
      (such amount, the “Reimbursement
      Amount”).
      The
      Reimbursement Amount shall be delivered to the Servicer for deposit into the
      Collection Account within 10 days from the date the Seller was notified by
      the
      Trustee of the amount of such costs and damages. It is understood and agreed
      that the obligation of the Seller to pay the Reimbursement Amount and to either
      cure or repurchase (or substitute for) any Mortgage Loan as to which a document
      is missing, a material defect in a constituent document exists or as to which
      such a breach has occurred and is continuing shall constitute the sole remedy
      against the Seller respecting such omission, defect or breach available to
      the
      Trustee and the Trustee on behalf of the Certificateholders.

    

    
      
         

      

      
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    (b) [Reserved].

    

    (c) Within
      90
      days of the earlier of discovery by the Servicer or receipt of notice by the
      Servicer of the breach of any representation, warranty or covenant of the
      Servicer set forth in Section 2.05 which materially and adversely affects
      the interests of the Certificateholders in any Mortgage Loan, the Servicer
      shall
      cure such breach in all material respects.

    

    (d) Any
      substitution of Eligible Substitute Mortgage Loans for Defective Mortgage Loans
      made pursuant to Section 2.03(a) must be effected prior to the last
      Business Day that is within two years after the Closing Date. As to any
      Defective Mortgage Loan for which the Seller substitutes a Eligible Substitute
      Mortgage Loan or Loans, such substitution shall be effected by the Seller
      delivering to the Custodian for such Eligible Substitute Mortgage Loan or Loans,
      the Mortgage Note, the Mortgage, the Assignment to the Trustee, and such other
      documents and agreements, with all necessary endorsements thereon, as are
      required by Section 2.01, together with an Officers’ Certificate providing that
      each such Eligible Substitute Mortgage Loan satisfies the definition thereof
      and
      specifying the Substitution Adjustment Amount (as described below), if any,
      in
      connection with such substitution. The Custodian shall acknowledge receipt
      for
      such Eligible Substitute Mortgage Loan or Loans and, within ten Business Days
      thereafter, pursuant to the terms of the Custodial Agreement, review such
      documents as specified in Section 2.02 and deliver to the Servicer, with
      respect to such Eligible Substitute Mortgage Loan or Loans, a certification
      substantially in the form attached hereto as Exhibit
      F-1,
      with
      any applicable exceptions noted thereon. Within one year of the date of
      substitution, pursuant to the terms of the Custodial Agreement, the Custodian
      shall deliver to the Servicer a certification substantially in the form of
      Exhibit F-2
      hereto
      with respect to such Eligible Substitute Mortgage Loan or Loans, with any
      applicable exceptions noted thereon. Monthly Payments due with respect to
      Eligible Substitute Mortgage Loans in the month of substitution are not part
      of
      the Trust Fund and will be retained by the Seller. For the month of
      substitution, distributions to Certificateholders will reflect the collections
      and recoveries in respect of such Defective Mortgage Loan in the Collection
      Period preceding the month of substitution and the Depositor or the Seller,
      as
      the case may be, shall thereafter be entitled to retain all amounts subsequently
      received in respect of such Defective Mortgage Loan. The Seller shall give
      or
      cause to be given written notice to the Certificateholders that such
      substitution has taken place, shall amend the Mortgage Loan Schedule to reflect
      the removal of such Defective Mortgage Loan from the terms of this Agreement
      and
      the substitution of the Eligible Substitute Mortgage Loan or Loans and shall
      deliver a copy of the amended Mortgage Loan Schedule to the Trustee. Upon such
      substitution, such Eligible Substitute Mortgage Loan or Loans shall constitute
      part of the Mortgage Pool and shall be subject in all respects to the terms
      of
      this Agreement and, in the case of a substitution effected by the Seller, the
      Mortgage Loan Purchase Agreement, including, in the case of a substitution
      effected by the Seller all applicable representations and warranties thereof
      included in the Mortgage Loan Purchase Agreement and all applicable
      representations and warranties thereof set forth in Section 2.04, in each
      case as of the date of substitution.

    

    
      
         

      

      
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    For
      any
      month in which the Seller substitutes one or more Eligible Substitute Mortgage
      Loans for one or more Defective Mortgage Loans, the Servicer will determine
      the
      amount (the “Substitution
      Adjustment Amount”),
      if
      any, by which the aggregate Purchase Price of all such Defective Mortgage Loans
      exceeds the aggregate, as to each such Eligible Substitute Mortgage Loan, of
      the
      principal balance thereof as of the date of substitution, together with one
      month’s interest on such principal balance at the applicable Net Mortgage
      Interest Rate. On the date of such substitution, the Seller will deliver or
      cause to be delivered to the Servicer for deposit in the Collection Account
      an
      amount equal to the Substitution Adjustment Amount, if any, and the Trustee,
      upon receipt by it or the Custodian of the related Eligible Substitute Mortgage
      Loan or Loans and certification by the Servicer of such deposit, shall cause
      the
      Custodian to release to the Seller the related Mortgage File or Files and shall
      execute and deliver such instruments of transfer or assignment, in each case
      without recourse, representation or warranty as the Seller shall deliver to
      it
      and as shall be necessary to vest therein any Defective Mortgage Loan released
      pursuant hereto.

    

    In
      addition, the Seller 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 the Trust Fund, including without
      limitation, any federal tax imposed on “prohibited transactions” under
      Section 860F(a)(l) of the Code or on “contributions after the startup date”
under Section 860G(d)(l) of the Code, or (b) any REMIC formed under
      this Agreement to fail to qualify as a REMIC at any time that any Certificate
      is
      outstanding. If such Opinion of Counsel can not be delivered, then such
      substitution may only be effected at such time as the required Opinion of
      Counsel can be given.

    

    (e) Upon
      discovery by the Seller, the Servicer or the Trustee that any Mortgage Loan
      does
      not constitute a “qualified mortgage” within the meaning of
      Section 860G(a)(3) of the Code, the party discovering such fact shall
      within two Business Days give written notice thereof to the other parties.
      In
      connection therewith, the Seller shall repurchase or, subject to the limitations
      set forth in Section 2.03(d), substitute one or more Eligible Substitute
      Mortgage Loans for the affected Mortgage Loan within 90 days of the earlier
      of
      discovery or receipt of such notice with respect to such affected Mortgage
      Loan.
      In addition, upon discovery that a Mortgage Loan is defective in a manner that
      would cause it to be a “defective obligation” within the meaning of Treasury
      regulations relating to REMICs, the Seller shall cure the defect or make the
      required purchase or substitution no later than 90 days after the discovery
      of
      the defect. Any such repurchase or substitution shall be made in the same manner
      as set forth in Section 2.03(a), if made by the Seller. The Trustee and
      Custodian shall reconvey to the Seller the Mortgage Loan to be released pursuant
      hereto in the same manner, and on the same terms and conditions, as it would
      a
      Mortgage Loan repurchased for breach of a representation or
      warranty.

    

    
      
         

      

      
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    Notwithstanding
      anything to the contrary contained herein, the parties hereto acknowledge that
      the functions of the Custodian with respect to the custody, acceptance,
      inspection and release of the Mortgage Files pursuant to Sections 2.01,
      2.02 and 2.03 and preparation and delivery of the certifications in the form
      of
Exhibit F-1
      and
Exhibit F-2
      shall be
      performed by the Custodian pursuant to the terms and conditions of the Custodial
      Agreement. The fees and expenses of the Custodian shall be paid by the
      Servicer.

    

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

    

    The
      Seller hereby represents and warrants to the Trustee for the benefit of the
      Certificateholders that as of the Closing Date or as of such other date
      specifically provided herein:

    

    (a) The
      representations and warranties made by the Seller pursuant to Section 3.01
      of the Mortgage Loan Purchase Agreement are hereby being made to the Trustee
      and
      are true and correct as of the Closing Date.

    

    (b) Any
      written agreement between the Mortgagor in respect of a Mortgage Loan and the
      Servicer modifying such Mortgagor’s obligation to make payments under the
      Mortgage Loan (such modified Mortgage Loan, a “Modified
      Mortgage Loan”)
      involved some assessment of the Mortgagor’s ability to repay the Modified
      Mortgage Loan.

    

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

    

    Upon
      discovery by the Depositor, the Seller, the Servicer or the Trustee of a breach
      of any of the representations and warranties contained in this Section that
      materially and adversely affects the value of any Mortgage Loan or the interest
      therein of the Certificateholders, the party discovering the breach shall give
      prompt written notice to the others and in no event later than two Business
      Days
      from the date of such discovery. Within ninety days of its discovery or its
      receipt of notice of any such missing or materially defective documentation
      or
      any such breach of a representation or warranty, the Seller shall promptly
      deliver such missing document or cure such defect or breach in all material
      respects, or in the event such defect or breach cannot be cured, the Seller
      shall repurchase the affected Mortgage Loan or cause the removal of such
      Mortgage Loan from the Trust Fund and substitute for it one or more Eligible
      Substitute Mortgage Loans, in either case, in accordance with
      Section 2.03.

    

    
      
         

      

      
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    It
      is
      understood and agreed that the representations and warranties set forth in
      this
      Section 2.04 shall survive delivery of the Mortgage Files to the Trustee
      and shall inure to the benefit of the Certificateholders notwithstanding any
      restrictive or qualified endorsement or assignment. It is understood and agreed
      that the obligations of the Seller set forth in Section 2.03(a) to cure,
      substitute for or repurchase a Mortgage Loan pursuant to the Mortgage Loan
      Purchase Agreement and to reimburse the Trust the Reimbursement Amount,
      constitute the sole remedies available to the Certificateholders or to the
      Trustee on their behalf respecting a breach of the representations and
      warranties contained in this Section 2.04.

    

    Section
      2.05. Representations,
      Warranties and Covenants of the Servicer.

    

    The
      Servicer hereby represents, warrants and covenants to the Trustee, for the
      benefit of each of the Trustee and the Certificateholders and to the Depositor
      that as of the Closing Date or as of such date specifically provided
      herein:

    

    (i) The
      Servicer is duly organized, validly existing, and in good standing under the
      laws of the jurisdiction of its formation and has all licenses necessary to
      carry on its business as now being conducted, except for such licenses,
      certificates and permits the absence of which, individually or in the aggregate,
      would not have a material adverse effect on the ability of the Servicer to
      conduct its business as it is presently conducted, and is licensed, qualified
      and in good standing in the states where the Mortgaged Property is located
      if
      the laws of such state require licensing or qualification in order to conduct
      business of the type conducted by the Servicer or to ensure the enforceability
      or validity of each Mortgage Loan; the Servicer has the power and authority
      to
      execute and deliver this Agreement and to perform in accordance herewith; the
      execution, delivery and performance of this Agreement (including all instruments
      of transfer to be delivered pursuant to this Agreement) by the Servicer and
      the
      consummation of the transactions contemplated hereby have been duly and validly
      authorized; this Agreement evidences the valid, binding and enforceable
      obligation of the Servicer, subject to applicable bankruptcy, insolvency,
      reorganization, moratorium or other similar laws affecting the enforcement
      of
      creditors’ rights generally; and all requisite corporate action has been taken
      by the Servicer to make this Agreement valid and binding upon the Servicer
      in
      accordance with its terms;

    

    (ii) The
      consummation of the transactions contemplated by this Agreement are in the
      ordinary course of business of the Servicer and will not result in the breach
      of
      any term or provision of the certificate of formation or the partnership
      agreement of the Servicer or result in the breach of any term or provision
      of,
      or conflict with or constitute a default under or result in the acceleration
      of
      any obligation under, any agreement, indenture or loan or credit agreement
      or
      other instrument to which the Servicer or its property is subject, or result
      in
      the violation of any law, rule, regulation, order, judgment or decree to which
      the Servicer or its property is subject;

    

    
      
         

      

      
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    (iii) The
      Servicer is an approved servicer of conventional mortgage loans for Fannie
      Mae
      and has the facilities, procedures and experienced personnel necessary for
      the
      sound servicing of mortgage loans of the same type as the Mortgage Loans. The
      Servicer is, and shall remain for as long as it is servicing the Mortgage Loans
      hereunder, in good standing to servicer mortgage loans for HUD, Fannie Mae
      or
      Freddie Mac, and no event has occurred, including but not limited to a change
      in
      insurance coverage, which would make the Servicer unable to comply with HUD,
      Fannie Mae or Freddie Mac or which would require notification to any of HUD,
      Fannie Mae or Freddie Mac;

    

    (iv) This
      Agreement, and all documents and instruments contemplated hereby which are
      executed and delivered by the Servicer, constitute and will constitute valid,
      legal and binding obligations of the Servicer, enforceable in accordance with
      their respective terms, except as the enforcement thereof may be limited by
      applicable bankruptcy laws and general principles of equity;

    

    (v) The
      Servicer 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;

    

    (vi) There
      is
      no action, suit, proceeding or investigation pending or, to its knowledge,
      threatened against the Servicer that, either individually or in the aggregate,
      may result in any material adverse change in the business, operations, financial
      condition, properties or assets of the Servicer, or in any material impairment
      of the right or ability of the Servicer to carry on its business substantially
      as now conducted, or in any material liability on the part of the Servicer,
      or
      that would draw into question the validity or enforceability of this Agreement
      or of any action taken or to be taken in connection with the obligations of
      the
      Servicer contemplated herein, or that would be likely to impair materially
      the
      ability of the Servicer to perform under the terms of this
      Agreement;

    

    (vii) No
      consent, approval or order of any court or governmental agency or body is
      required for the execution, delivery and performance by the Servicer of or
      compliance by the Servicer with this Agreement or the consummation of the
      transactions contemplated by this Agreement, except for such consents,
      approvals, authorizations and orders, if any, that have been
      obtained;

    

    (viii) Neither
      this Agreement nor any information, certificate of an officer, statement
      furnished in writing or report delivered to the Trustee by the Servicer in
      connection with the transactions contemplated hereby contains or will contain
      any untrue statement of a material fact or omits or will omit to state a
      material fact necessary in order to make the statements contained therein,
      in
      light of the circumstances under which they were made, not misleading;
      and

    

    
      
         

      

      
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    (ix) The
      Servicer has fully furnished, and shall continue to fully furnish for so long
      as
      it is servicing the Mortgage Loans hereunder, in accordance with the Fair Credit
      Reporting Act and its implementing regulations, accurate and complete
      information on the Mortgagor credit files to Equifax, Experian and Trans Union
      Credit Information Company on a monthly basis.

    

    It
      is
      understood and agreed that the representations, warranties and covenants set
      forth in this Section 2.05 shall survive delivery of the Mortgage Files to
      the Custodian and shall inure to the benefit of the Trustee, the Depositor
      and
      the Certificateholders. Upon discovery by any of the Depositor, the Servicer,
      the Seller or the Trustee of a breach of any of the foregoing representations,
      warranties and covenants which materially and adversely affects the value of
      any
      Mortgage Loan or the interests therein of the Certificateholders, the party
      discovering such breach shall give prompt written notice (but in no event later
      than two Business Days following such discovery) to the other parties
      hereto.

    

    Section
      2.06. Representations
      and Warranties of the Depositor.

    

    The
      Depositor represents and warrants to the Trust and the Trustee on behalf of
      the
      Certificateholders as follows:

    

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

    

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

    

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

    

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

    

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

    

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

    

    
      
         

      

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

    

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

    

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

    

    Section
      2.07. Issuance
      of Certificates and the Uncertificated Regular Interests.

    

    The
      Trustee acknowledges the assignment to it of the Mortgage Loans and the delivery
      to it (or the Custodian, as bailee and Custodian of the Trustee) of the Mortgage
      Files, subject to the provisions of Sections 2.01 and 2.02, and the Trustee
      acknowledges the assignment to it of all other assets included in the Trust
      Fund, receipt of which is hereby acknowledged. Concurrently with such assignment
      and delivery and in exchange therefor, the Trustee, pursuant to the Written
      Order to Authenticate executed by an officer of the Depositor, has executed,
      and
      the Certificate Registrar has authenticated and delivered to or upon the order
      of the Depositor, the Certificates (other than the Residual Certificates) in
      minimum dollar denominations of $100,000 and integral dollar multiples of $1
      in
      excess. The Class CE and Class P Certificates are issuable only in minimum
      Percentage Interests of 10%. The Class R and Class R-X Certificates are
      issuable only in minimum Percentage Interests of 100%. The Trustee acknowledges
      the issuance of the uncertificated REMIC 1 Regular Interests and declares that
      it holds such regular interests as assets of REMIC 2. The Trustee
      acknowledges the issuance of the uncertificated REMIC 2 Regular Interests and
      declares that it holds such regular interests as assets of REMIC 3. The Trustee
      acknowledges the obligation of the Class CE-1 Certificates to pay Cap Carryover
      Amounts, and declares that it holds the same on behalf of the Holders of the
      Class A, Class B and Class M Certificates, respectively, which shall be treated
      as beneficially owning the right to receive the Cap Carryover Amounts. The
      interests evidenced by the Certificates constitute the entire beneficial
      ownership interest in the Trust Fund. The Trustee acknowledges the issuance
      of
      the uncertificated REMIC 3 Class CE-1 Interest and declares that it holds such
      regular interest as the asset of REMIC A. The Trustee acknowledges the
      issuance of the uncertificated REMIC 3 Class P Interest and declares that it
      holds such regular interest as the asset of REMIC B. The Trustee
      acknowledges the issuance of the uncertificated REMIC 3 Class B-1 Regular
      Interest and declares that it holds such regular interest as the asset of REMIC
      C. The Trustee acknowledges the issuance of the uncertificated REMIC 3 Class
      CE-2 Interest and declares that it holds such regular interest as the asset
      of
      REMIC D. The Trustee acknowledges the obligation of the Class CE Certificate
      to
      pay Cap Carryover Amounts, Swap Termination Payments and Class Swap-IO
      Distribution Amounts. The Trustee also acknowledges the obligation of the
      Offered Certificates and Class B-1 Certificates to pay Class SWAP-IO
      Distribution Amounts. The “latest possible maturity date” for all REMIC Regular
      Interests pursuant to Section 1.860G-1(a)(4)(iii) of the Treasury Regulations
      is
      the Distribution Date immediately following the maturity date for the Mortgage
      Loan with the latest maturity date.

    

    
      
         

      

      
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    Section
      2.08. Representations
      and Warranties of the Seller.

    

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

    

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

    

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

    

    
      
         

      

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

    

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

    

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

    

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

    

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

    

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

    

    
      
         

      

      
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    (ix) There
      are
      no actions or proceedings against, or investigations of, the Seller pending
      or,
      to its knowledge, threatened, before any court, administrative agency or other
      tribunal (i) that, if determined adversely, would prohibit the Seller from
      entering into this Agreement, (ii) seeking to prevent the consummation of
      any of the transactions contemplated by this Agreement or (iii) that, if
      determined adversely, would prohibit or materially and adversely affect the
      Seller’s performance of any of its respective obligations under, or the validity
      or enforceability of, this Agreement.

    

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

    

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

    

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

    

    Section
      2.09. Covenants
      of the Seller.

    

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

    

    ARTICLE
      III

    

    ADMINISTRATION
      AND SERVICING

    OF
      THE TRUST FUND

    

    Section
      3.01. Servicer
      to Act as Servicer.

    

    The
      Servicer, as independent contract servicer, shall service and administer the
      Mortgage Loans in accordance with this Agreement and the normal and usual
      standards of practice of prudent mortgage servicers, and shall have full power
      and authority, acting alone, to do or cause to be done any and all things in
      connection with such servicing and administration which the Servicer may deem
      necessary or desirable and consistent with the terms of this Agreement (the
      “Servicing
      Standards”).

    

    
      
         

      

      
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    Consistent
      with the terms of this Agreement, the Servicer may waive, modify or vary any
      term of any Mortgage Loan or consent to the postponement of strict compliance
      with any such term or in any manner grant indulgence to any Mortgagor if in
      the
      Servicer’s reasonable and prudent determination such waiver, modification,
      postponement or indulgence is not materially adverse to the Certificateholders;
      provided,
      however,
      that
      the Servicer shall not make future advances and (unless the Mortgagor is in
      default with respect to the Mortgage Loan or such default is, in the judgment
      of
      the Servicer, reasonably foreseeable) the Servicer shall not permit any
      modification with respect to any Mortgage Loan that would (i) change the
      Mortgage Interest Rate, defer or forgive the payment thereof of any principal
      or
      interest payments, reduce the outstanding principal amount (except for actual
      payments of principal) or extend the final maturity date with respect to such
      Mortgage Loan, (ii) affect adversely the status of any REMIC constituting part
      of the Trust Fund as a REMIC or (iii) cause any REMIC to be subject to a
      tax on “prohibited transactions” or “contributions” pursuant to the REMIC
      Provisions. Notwithstanding the foregoing, the Servicer shall not permit any
      modification with respect to any Mortgage Loan that would both (x) effect
      an exchange or reissuance of such Mortgage Loan under Section 1.860G-2(b)
      of the Treasury Regulations and (y) cause any REMIC constituting part of
      the 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 Day
      under the REMIC Provisions. Without limiting the generality of the foregoing,
      the Servicer shall continue, and is hereby authorized and empowered to execute
      and deliver on behalf of itself, and the Trustee, all instruments of
      satisfaction or cancellation, or of partial or full release, discharge and
      all
      other comparable instruments, with respect to the Mortgage Loans and with
      respect to the Mortgaged Property. The Servicer shall make all required
      Servicing Advances and shall service and administer the Mortgage Loans in
      accordance with Applicable Regulations, and shall provide to the Mortgagors
      any
      reports required to be provided to them thereby. If reasonably required by
      the
      Servicer, the Trustee shall furnish the Servicer with a power of attorney
      (substantially in the form annexed hereto as Exhibit
      R)
      and
      other documents necessary or appropriate to enable the Servicer to carry out
      its
      servicing and administrative duties under this Agreement. The Trustee shall
      not
      be liable for the actions of the Servicer or any Subservicers under such powers
      of attorney and shall be indemnified by Servicer for any costs, liabilities
      or
      expenses incurred by the Trustee in connection with the Servicer’s misuse of
      such power of attorney.

    

    Notwithstanding
      anything contained herein to the contrary, the Servicer shall not, without
      the
      Trustee’s written consent: (i) initiate any action, suit or proceeding directly
      relating to the servicing of a Mortgage Loan solely under the Trustee’s name
      without indicating the Servicer’s representative capacity (provided that the
      Servicer shall not be required to sign the Power of Attorney in order to perform
      the functions enumerated therein), (ii) initiate any other action, suit or
      proceeding not directly relating to the servicing of a Mortgage Loan (including
      but not limited to actions, suits or proceedings against Certificateholders,
      or
      against the Depositor or the Seller for breaches of representations and
      warranties) solely under the Trustee’s name, (iii) engage counsel to represent
      the Trustee in any action, suit or proceeding not directly related to the
      servicing of any Mortgage Loan (including but not limited to actions, suits
      or
      proceedings against Certificateholders, or against the Depositor or the Seller
      for breaches of representations and warranties, or (iv) prepare, execute or
      deliver any government filings, forms, permits, registrations or other documents
      or take any action with the intent to cause, and that actually causes, the
      Trustee to be registered to do business in any state.

    

    
      
         

      

      
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    In
      connection with any modification pursuant to this Section 3.01 and to the extent
      there are any unreimbursed Advances or Servicing Advances, the Servicer shall
      reimburse itself for such amounts from the Collection Account.

    

    In
      servicing and administering the Mortgage Loans, the Servicer shall employ
      procedures including collection procedures and exercise the same care that
      it
      customarily employs and exercises in servicing and administering mortgage loans
      for its own account giving due consideration to accepted mortgage servicing
      practices of prudent lending institutions and the Certificateholders’ reliance
      on the Servicer.

    

    The
      Servicer shall give prompt notice to the Trustee of any action, of which the
      Servicer has actual knowledge, which action purports to (i) assert a claim
      against the Trust Fund or (ii) assert jurisdiction over the Trust
      Fund.

    

    Notwithstanding
      anything in this Agreement to the contrary, in the event of a Principal
      Prepayment in Full, the Servicer may not waive any Prepayment Penalty or portion
      thereof required by the terms of the related Mortgage Note unless (i) the
      related Mortgage Loan is in default or foreseeable default and such waiver
      (A)
      is standard and customary in servicing mortgage loans similar to the Mortgage
      Loans and (B) the Servicer determines that such waiver would maximize recovery
      of Liquidation Proceeds for such Mortgage Loan, taking into account the value
      of
      such prepayment penalty, (ii) (A) the enforceability thereof is limited (1)
      by
      bankruptcy, insolvency, moratorium, receivership, or other similar law relating
      to creditors’ rights generally or (2) due to acceleration in connection with a
      foreclosure or other involuntary payment, or (B) the enforceability is otherwise
      limited or prohibited by applicable law, (iii) the Servicer has not been
      provided with information sufficient to enable it to collect the Prepayment
      Penalty, (iv) if the collection of such Prepayment Penalty would be considered
      “predatory” pursuant to written guidance published or issued by an applicable
      federal, state, or local regulatory authority acting in its official capacity
      and having jurisdiction over such matters or (v) there is a certified class
      action in which a similar type of prepayment penalty is being challenged. In
      the
      event of a Principal Prepayment in Full with respect to any Mortgage Loan,
      the
      Servicer shall deliver to the Trustee an Officer’s Certificate substantially in
      the form of Exhibit
      M
      no later
      than the third Business Day following the immediately succeeding Determination
      Date with a copy to the Class P Certificateholder. If the Servicer has waived
      or
      does not collect all or a portion of a Prepayment Penalty relating to a
      Principal Prepayment in Full due to any action or omission of the Servicer,
      other than as provided above, the Servicer shall (a), on or prior to the
      Distribution Date immediately following the date on which the Principal
      Prepayment in Full is remitted to the Trustee or (b) if the Servicer is notified
      that its waiver was not in accordance with subparts (i), (ii), (iii), (iv)
      or
      (v) above, and it is determined by the notifying party and the Servicer that
      its
      waiver was not in accordance with such subparts, on or prior to the Distribution
      Date immediately following such date of determination, deliver to the Trustee
      the amount of such Prepayment Penalty (or such portion thereof as had been
      waived for deposit) into the Distribution Account for distribution to the Class
      P Certificates in accordance with the terms of this Agreement.

    

    
      
         

      

      
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    Section
      3.02. Collection
      of Mortgage Loan Payments.

    

    Continuously
      from the date hereof until the principal and interest on all Mortgage Loans
      are
      paid in full, the Servicer will diligently collect all payments due under each
      Mortgage Loan when the same shall become due and payable and shall, to the
      extent such procedures shall be consistent with this Agreement and the terms
      and
      provisions of any related Primary Insurance Policy and Applicable Regulations,
      follow such collection procedures as it follows with respect to mortgage loans
      comparable to the Mortgage Loans and held for its own account. Further, the
      Servicer will take special care in ascertaining and estimating taxes, fire
      and
      hazard insurance premiums, mortgage insurance premiums, and all other charges
      that, as provided in the Mortgage, will become due and payable to that end
      that
      the installments payable by the Mortgagors will be sufficient to pay such
      charges as and when they become due and payable.

    

    Section
      3.03. Realization
      Upon Defaulted Mortgage Loans.

    

    In
      the
      event that any payment due under any Mortgage Loan is not paid when the same
      becomes due and payable, or in the event the Mortgagor fails to perform any
      other covenant or obligation under the Mortgage Loan and such failure continues
      beyond any applicable grace period, the Servicer shall take such action as
      it
      shall deem to be in the best interest of the Certificateholders, including
      either foreclosing on any such Mortgage Loan or working out an agreement with
      the Mortgagor, which may involve waiving or modifying certain terms of the
      Mortgage Loan, subject to the second paragraph of Section 3.01. With respect
      to
      any defaulted Mortgage Loan, the Servicer shall have the right to review the
      status of the related forbearance plan and, subject to the second paragraph
      of
      Section 3.01, may modify such forbearance plan; including, extending the
      Mortgage Loan repayment date for a period of one year or reducing the Mortgage
      Interest Rate.

    

    In
      connection with a foreclosure or other conversion, the Servicer shall exercise
      such rights and powers vested in it hereunder and use the same degree of care
      and skill in its exercise as prudent mortgage servicers would exercise or use
      under the circumstances in the conduct of their own affairs and consistent
      with
      Applicable Regulations and the servicing standards set forth in the Fannie
      Mae
      Guide, including, without limitation, advancing funds for the payment of taxes
      and insurance premiums with respect to first lien Mortgage Loans.

    

    Notwithstanding
      the foregoing provisions of this Section 3.03, with respect to any Mortgage
      Loan as to which the 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 Servicer shall not 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
      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 Servicer has also
      previously determined, based on its reasonable judgment and a prudent report
      prepared by a Person who regularly conducts environmental audits using customary
      industry standards, that:

    

    
      
         

      

      
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    A. such
      Mortgaged Property is in compliance with applicable environmental laws or,
      if
      not, that it would be in the best economic interest of the Certificateholders
      to
      take such actions as are necessary to bring the Mortgaged Property into
      compliance therewith; and

    

    B. 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 Certificateholders to take such actions with respect
      to
      the affected Mortgaged Property.

    

    The
      cost
      of the environmental audit report contemplated by this Section 3.03 shall be
      advanced by the Servicer, subject to the Servicer’s right to be reimbursed
      therefor from the Collection Account as provided in
      Section 3.05(ii).

    

    If
      the
      Servicer determines, as described above, that it is in the best economic
      interest of the Certificateholders 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 the
      Servicer shall take such action as it deems to be in the best economic interest
      of the Certificateholders. The cost of any such compliance, containment, cleanup
      or remediation shall be advanced by the Servicer, subject to the Servicer’s
      right to be reimbursed therefor from the Collection Account as provided in
      Section 3.05(ii).

    

    Section
      3.04. Collection
      Account, Distribution Account and Cap Carryover Reserve Account.

    

    (a) The
      Servicer shall segregate and hold all funds collected and received pursuant
      to
      each Mortgage Loan separate and apart from any of its own funds and general
      assets and shall establish and maintain one or more Collection Accounts. Each
      Collection Account shall be an Eligible Account.

    

    The
      Servicer shall deposit in the Collection Account on a daily basis within two
      Business Days after determining the proper cash application after receipt of
      such funds, and retain therein, the following payments and collections received
      or made by it after the Cut-off Date with respect to the Mortgage
      Loans:

    

    (i) all
      payments on account of principal, including Principal Prepayments, on the
      Mortgage Loans;

    

    (ii) all
      payments on account of interest on the Mortgage Loans adjusted to the Mortgage
      Interest Rate less the Servicing Fee Rate;

    

    (iii) all
      proceeds from a Cash Liquidation and any Subsequent Recoveries;

    

    
      
         

      

      
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    (iv) all
      Insurance Proceeds including amounts required to be deposited pursuant to
      Section 3.10, other than proceeds to be held in the Escrow Account and
      applied to the restoration or repair of the Mortgaged Property or released
      to
      the Mortgagor in accordance with the Servicer’s normal servicing procedures, the
      loan documents or applicable law;

    

    (v) all
      Condemnation Proceeds affecting any Mortgaged Property which are not released
      to
      the Mortgagor in accordance with the Servicer’s normal servicing procedures, the
      loan documents or applicable law; and

    

    (vi) any
      amounts required to be deposited by the Servicer in connection with any REO
      Property pursuant to Section 3.13.

    

    Any
      interest paid on funds deposited in the Collection Account, subject to
      Section 3.25, shall accrue to the benefit of the Servicer and the Servicer
      shall be entitled to retain and withdraw such interest from the Collection
      Account pursuant to Section 3.05(v). The foregoing requirements for deposit
      from the Collection Account shall be exclusive, it being understood and agreed
      that, without limiting the generality of the foregoing, payments in the nature
      of late payment charges, prepayment charges that are not Prepayment Penalties,
      and assumption fees need not be deposited by the Servicer in the Collection
      Account.

    

    (b) On
      behalf
      of the Trust Fund, the Trustee shall establish and maintain one or more accounts
      (such account or accounts, the “Distribution
      Account”),
      held
      in trust for the benefit of the Certificateholders. On behalf of the Trust
      Fund,
      the Servicer shall deliver to the Trustee in immediately available funds for
      deposit in the Distribution Account by 3:00 PM New York time on the Servicer
      Remittance Date, that portion of the Interest Remittance Amount and Principal
      Remittance Amount (calculated without regard to the references in the definition
      thereof to amounts that may be deposited to the Distribution Account from a
      different source as provided herein) then on deposit in the Collection Account;
      provided, further, in connection with any failure by the Servicer to make any
      remittance required to be made by the Servicer to the Distribution Account
      on
      the day and by the time such remittance is required to be made under the terms
      of this Agreement (without giving effect to any grace or sure period), the
      Servicer shall pay to the Trustee for the account of the Trustee interest at
      the
      Prime Rate (as set forth in The Wall Street Journal) or such other rate mutually
      agreed to between the Servicer and the Trustee or any amount not timely remitted
      from and including the day such remittance was required to be made to, but
      not
      including, the day on which such remittance was actually made. Amounts in the
      Distribution Account (other than non-REMIC assets) shall be deemed to be held
      on
      behalf of the related REMICs in accordance with the REMIC distributions set
      forth in Section 4.08.

    

    (c) Funds
      in
      the Collection Account and the Distribution Account may be invested in Permitted
      Investments in accordance with the provisions set forth in Section 3.25. The
      Servicer shall give notice to the Trustee of the location of the Collection
      Account maintained by it when established and prior to any change thereof.
      The
      Trustee shall give notice to the Servicer and the Depositor of the location
      of
      the Distribution Account when established and prior to any change
      thereof.

    

    
      
         

      

      
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    (d) In
      the
      event the Servicer shall deliver to the Trustee for deposit in the Distribution
      Account any amount not required to be deposited therein, it may at any time
      request in writing that the Trustee withdraw such amount from the Distribution
      Account and remit to the Servicer any such amount, any provision herein to
      the
      contrary notwithstanding. In addition, the Servicer shall deliver to the Trustee
      from time to time for deposit, and the Trustee shall so deposit, in the
      Distribution Account in respect of REMIC 1:

    

    (i) any
      Advances, as required pursuant to Section 4.07;

    

    (ii) any
      Stayed Funds, as soon as permitted by the federal bankruptcy court having
      jurisdiction in such matters;

    

    (iii) any
      Prepayment Penalties or amounts in connection with the waiver of such Prepayment
      Penalties, in each case required to be deposited pursuant to
      Section 3.01;

    

    (iv) any
      amounts required to be deposited in the Distribution Account pursuant to
      Sections 2.03, 3.04, 3.15, 3.16, 3.23 or 4.07; and

    

    (v) any
      amounts required to be deposited by the Servicer pursuant to Section 3.11
      in connection with the deductible clause in any blanket hazard insurance policy,
      such deposit being made from the Servicer’s own funds, without reimbursement
      therefor.

    

    (e) Promptly
      upon receipt of any Stayed Funds, whether from the Servicer, a trustee in
      bankruptcy, or federal bankruptcy court or other source, the Trustee shall
      notify the Servicer of such receipt and deposit such funds in the Distribution
      Account, subject to withdrawal thereof as permitted hereunder. In addition,
      the
      Trustee shall deposit in the Distribution Account any amounts required to be
      deposited pursuant to Section 3.25(b) in connection with losses realized on
      Permitted Investments with respect to funds held in the Distribution
      Account.

    

    (f) No
      later
      than the Closing Date, the Trustee shall establish and maintain with itself
      a
      separate, segregated trust account which will be the Cap Carryover Reserve
      Account.

    

    On
      each
      Distribution Date as to which there is a Cap Carryover Amount payable to the
      Offered Certificates, the Trustee has been directed by the Class CE-1
      Certificateholders to, and therefore will, deposit into the Cap Carryover
      Reserve Account the amounts described in Section 4.02(b)(xxxiii), rather than
      distributing such amounts to the Class CE-1 Certificateholders. On each such
      Distribution Date, the Trustee shall hold all such amounts for the benefit
      of
      the Holders of the Offered Certificates, and will distribute such amounts to
      the
      Holders of the Offered Certificates in the amounts and priorities set forth
      in
      Sections 4.01 and 4.02.

    

    For
      federal and state income tax purposes, the Class CE-1 Certificateholders will
      be
      deemed to be the owners of the Cap Carryover Reserve Account and all amounts
      deposited into the Cap Carryover Reserve Account shall be treated as amounts
      distributed by REMIC 3 with respect to the Class CE REMIC 3 Regular Interests.
      Upon the termination of the Trust Fund, or the payment in full of the Offered
      Certificates, all amounts remaining on deposit in the Cap Carryover Reserve
      Account will be released by the Trust Fund and distributed to the Class CE-1
      Certificateholders or their designees. The Cap Carryover Reserve Account will
      be
      part of the Trust Fund but not part of any REMIC and any payments to the Holders
      of the Offered Certificates of Cap Carryover Amounts will not be payments with
      respect to a “regular interest” in a REMIC within the meaning of Code Section
      860G(a)(1).

    

    
      
         

      

      
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    By
      accepting a Class CE-1 Certificate, each Class CE-1 Certificateholder hereby
      agrees to direct the Trustee, and the Trustee hereby is directed, to deposit
      into the Cap Carryover Reserve Account the amounts described above on each
      Distribution Date as to which there is any Cap Carryover Amount 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
      such direction is given for good and valuable consideration, the receipt and
      sufficiency of which is acknowledged by such acceptance. Amounts held in the
      Cap
      Carryover Reserve Account shall be held uninvested.

    

    Any
      Cap
      Carryover Amounts paid by the Trustee pursuant to this Section 3.04(f) to the
      applicable Offered Certificates shall be accounted for by the Trustee as amounts
      paid first to the Holder of the Class CE-1 Interest and then to such Class
      or
      Classes of Offered Certificates. In addition, the Trustee shall account for
      the
      Fixed-Rate and Floating Rate Certificates’ rights to receive payments of Cap
      Carryover Amounts as rights in a limited recourse interest rate cap contract
      written by the Holders of the Class CE-1 Interest in favor of such
      Certificates.

    

    For
      federal tax return and information reporting, the value of the right of the
      Holders of the Offered Certificates to receive payments from the Cap Carryover
      Reserve Account in respect of any Cap Carryover Amount shall be de
      minimis unless
      and until required otherwise by an applicable taxing authority.

    

    Section
      3.05. Permitted
      Withdrawals From the Collection Account.

    

    The
      Servicer may, from time to time, withdraw from the Collection Account for the
      following purposes:

    

    (i) to
      remit
      to the Trustee for deposit in the Distribution Account the amounts required
      to
      be so remitted pursuant to Section 3.04(b) or permitted to be so remitted
      pursuant to clause (ii) of first sentence of the second paragraph of Section
      4.07(b);

    

    (ii) to
      reimburse itself for (a) Advances and Servicing Advances to the extent of
      amounts received on the related Mortgage Loan which represent payments of (x)
      principal and/or interest respecting which any such Advance was made or (y)
      Condemnation Proceeds, Insurance Proceeds or Liquidation Proceeds respecting
      which any such Servicing Advance was made; including in connection with the
      modification of a Mortgage Loan to the extent that such amounts have not
      previously been reimbursed; or (b) any unreimbursed Advances or Servicing
      Advances to the extent of funds held in the Collection Account for future
      distribution that were not included in Available Funds for the preceding
      Distribution Date; provided,
      however,
      any
      funds so applied will be replaced by the Servicer by deposit in the Collection
      Account no later than one Business Day prior to the Distribution Date on which
      such funds are required to be distributed;

    

    
      
         

      

      
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    (iii) to
      reimburse itself for unreimbursed Servicing Advances, any unpaid Servicing
      Fees
      and for unreimbursed Advances to the extent that such amounts are deemed to
      be
      Nonrecoverable Advances and to reimburse itself for such amounts to the extent
      that such amounts are nonrecoverable from the disposition of REO Property or
      have been written-off pursuant to Section 3.13;

    

    (iv) to
      reimburse itself for any amounts paid pursuant to Section 3.03 (and not
      otherwise previously reimbursed);

    

    (v) to
      pay to
      itself as servicing compensation (a) any interest earned on funds in the
      Collection Account (all such interest to be withdrawn monthly not later than
      each Servicer Remittance Date) and (b) the Servicing Fee from that portion
      of any payment or recovery as to interest to a particular Mortgage Loan to
      the
      extent not retained pursuant to Section 3.04(ii);

    

    (vi) to
      pay or
      reimburse itself for any amounts payable or paid pursuant to Section 6.03
      (and not otherwise previously reimbursed) and to reimburse itself as set forth
      in Section 9.01(c); and

    

    (vii) to
      clear
      and terminate the Collection Account upon the termination of this
      Agreement.

    

    The
      foregoing requirements for withdrawal from the Collection Account shall be
      exclusive. In the event the Servicer shall deposit in the Collection Account
      any
      amount not required to be deposited therein, it may at any time withdraw such
      amount from the Collection Account, any provision herein to the contrary
      notwithstanding.

    

    Section
      3.06. Establishment
      of Escrow Account; Deposits in Escrow Account.

    

    The
      Servicer shall segregate and hold all funds collected and received pursuant
      to
      each Mortgage Loan which constitute Escrow Payments separate and apart from
      any
      of its own funds and general assets and shall establish and maintain one or
      more
      Escrow Accounts, in the form of time deposit or demand accounts. A copy of
      such
      letter agreement shall be furnished to the Trustee upon request. The Escrow
      Account shall be an Eligible Account.

    

    The
      Servicer shall deposit in the Escrow Account on a daily basis within two
      Business Days after determining the proper cash application after receipt of
      such funds, and retain therein, (i) all Escrow Payments collected on
      account of the Mortgage Loans, for the purpose of effecting timely payment
      of
      any such items as required under the terms of this Agreement, and (ii) all
      Insurance Proceeds which are to be applied to the restoration or repair of
      any
      Mortgaged Property. The Servicer shall make withdrawals therefrom only to effect
      such payments as are required under this Agreement, and for such other purposes
      as shall be set forth in, or in accordance with, Section 3.07. The Servicer
      shall be entitled to retain any interest paid on funds deposited in the Escrow
      Account by the depository institution other than interest on escrowed funds
      required by law to be paid to the Mortgagor and, to the extent required by
      the
      related Mortgage Loan or Applicable Regulations, the Servicer shall pay interest
      on escrowed funds to the Mortgagor notwithstanding that the Escrow Account
      is
      non-interest bearing or that interest paid thereon is insufficient for such
      purposes.

    

    
      
         

      

      
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    Section
      3.07. Permitted
      Withdrawals From Escrow Account.

    

    Withdrawals
      from the Escrow Account may be made by the Servicer (i) to effect timely
      payments of taxes, fire, flood and hazard insurance premiums, Primary Insurance
      Policy premiums, if applicable, and comparable items, (ii) to reimburse the
      Servicer for any Servicing Advance made by the Servicer with respect to a
      related Mortgage Loan but only from amounts received on the related Mortgage
      Loan which represent late payments or Late Collections of Escrow Payments
      thereunder, (iii) to refund to the Mortgagor any funds as may be determined
      to be overages, (iv) for transfer to the Collection Account in accordance
      with the terms of this Agreement, (v) for application to restoration or
      repair of the Mortgaged Property, (vi) to pay to the Servicer, or to the
      Mortgagor to the extent required by the related Mortgage Loan or Applicable
      Regulations, any interest paid on the funds deposited in the Escrow Account,
      (vii) to clear and terminate the Escrow Account on the termination of this
      Agreement or (viii) to transfer to the Collection Account any insurance
      proceeds. As part of its servicing duties, the Servicer shall pay to the
      Mortgagor interest on funds in the Escrow Account, to the extent required by
      the
      related Mortgage Loan or Applicable Regulations, and to the extent that interest
      earned on funds in the Escrow Account is insufficient, shall pay such interest
      from its own funds, without any reimbursement therefor.

    

    In
      the
      event the Servicer shall deposit in the Escrow Account any amount not required
      to be deposited therein, it may at any time withdraw such amount from the Escrow
      Account, any provision herein to the contrary notwithstanding.

    

    Section
      3.08. Payment
      of Taxes, Insurance and Other Charges; Collections Thereunder.

    

    With
      respect to each first lien Mortgage Loan, the Servicer shall maintain accurate
      records reflecting the status of taxes and other charges which are or may become
      a lien upon the Mortgaged Property and the status of Primary Insurance Policy
      premiums and fire, flood and hazard insurance coverage and shall obtain, from
      time to time, all bills for the payment of such charges (including renewal
      premiums) and shall effect payment thereof prior to the applicable penalty
      or
      termination date and at a time appropriate for securing maximum discounts
      allowable, employing for such purpose deposits of the Mortgagor in the Escrow
      Account which shall have been estimated and accumulated by the Servicer in
      amounts sufficient for such purposes, as allowed under the terms of the Mortgage
      or Applicable Regulations. To the extent that a Mortgage does not provide for
      Escrow Payments, the Servicer shall (i) 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) 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 Servicer receives notice of a tax lien with
      respect to the Mortgage Loan being imposed, the Servicer will, 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.
      The 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 from its own funds to effect such
      payments.

    

    
      
         

      

      
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    The
      Servicer, on behalf of the Trustee, as mortgagee, will maintain in full force
      and effect (to the extent a Mortgage Loan has a Primary Insurance Policy) a
      Primary Insurance Policy issued by a Qualified Insurer with respect to each
      Mortgage Loan for which such coverage is required. Such coverage will be
      maintained until the Combined Loan-to-Value Ratio of the related Mortgage Loan
      is reduced to 80% or less. The Servicer will not cancel or refuse to renew
      any
      Primary Insurance Policy in effect on the Closing Date that is required to
      be
      kept in force under this Agreement unless a replacement Primary Insurance Policy
      for such cancelled or non-renewed policy is obtained from and maintained with
      a
      Qualified Insurer. The Servicer shall not take any action which would result
      in
      non-coverage under any applicable Primary Insurance Policy of any loss which,
      but for the actions of the Servicer, would have been covered thereunder. In
      connection with any assumption or substitution agreement entered into or to
      be
      entered into pursuant to Section 3.14, the Servicer shall promptly notify
      the insurer under the related Primary Insurance Policy, if any, of such
      assumption or substitution of liability in accordance with the terms of such
      policy and shall take all actions which may be required by such insurer as
      a
      condition to the continuation of coverage under the Primary Insurance Policy.
      If
      such Primary Insurance Policy is terminated as a result of such assumption
      or
      substitution of liability, the Servicer shall obtain a replacement Primary
      Insurance Policy as provided above.

    

    In
      connection with its activities as servicer, the Servicer agrees to prepare
      and
      present, on behalf of itself and the Trustee, claims to the insurer under any
      Primary Insurance Policy in a timely fashion in accordance with the terms of
      such policies and, in this regard, to take such action as shall be necessary
      to
      permit recovery under any Primary Insurance Policy respecting a defaulted
      Mortgage Loan. Pursuant to Section 3.04, any amounts collected by the
      Servicer under any Primary Insurance Policy shall be deposited in the Collection
      Account, subject to withdrawal pursuant to Section 3.05.

    

    Section
      3.09. Transfer
      of Accounts.

    

    The
      Servicer may transfer the Collection Account or the Escrow Account to a
      different depository institution from time to time. Upon such transfer, the
      Servicer shall deliver to the Trustee and the Depositor, a certification or
      letter agreement, as the case may be, as required pursuant to Sections 3.04
      and 3.06.

    

    Section
      3.10. Maintenance
      of Hazard Insurance.

    

    The
      Servicer shall cause to be maintained for each first lien Mortgage Loan 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 (i) the amount necessary to fully compensate for any damage or loss to
      the improvements which are a part of such property on a replacement cost basis
      or (ii) the Principal Balance of the Mortgage Loan, in each case in an
      amount not less than such amount as is necessary to prevent the Mortgagor and/or
      the Mortgagee from becoming a co-insurer. If the Mortgaged Property is in an
      area identified in the Federal Register by the Flood Emergency Management Agency
      as having special flood hazards and flood insurance has been made available,
      the
      Servicer will cause to be maintained a flood insurance policy meeting the
      requirements of the current guidelines of the Federal Insurance Administration
      with a generally acceptable insurance carrier, in an amount representing
      coverage not less than the least of (i) the Principal Balance of the
      Mortgage Loan, (ii) the maximum insurable value of the improvements
      securing such Mortgage Loan or (iii) the maximum amount of insurance which
      is available under the Flood Disaster Protection Act of 1973, as amended. The
      Servicer shall also maintain on the REO Property for the benefit of the
      Certificateholders, (x) fire and hazard insurance with extended coverage in
      an amount which is at least equal to the replacement cost of the improvements
      which are a part of such property, (y) public liability insurance and,
      (z) to the extent required and available under the Flood Disaster
      Protection Act of 1973, as amended, flood insurance in an amount as provided
      above. Any amounts collected by the Servicer under any such policies other
      than
      amounts to be deposited in the Escrow Account and applied to the restoration
      or
      repair of the Mortgaged Property or REO Property, or released to the Mortgagor
      in accordance with the Servicer’s normal servicing procedures, shall be
      deposited in the Collection Account, subject to withdrawal pursuant to
      Section 3.05. It is understood and agreed that no earthquake or other
      additional insurance is required to be maintained by the Servicer or the
      Mortgagor or maintained on property acquired in respect of the Mortgage Loan,
      other than pursuant to such Applicable Regulations as shall at any time be
      in
      force and as shall require such additional insurance. All such policies shall
      be
      endorsed with standard mortgagee clauses with loss payable to the Servicer
      and
      shall provide for at least thirty days prior written notice of any cancellation,
      reduction in the amount of or material change in coverage to the Servicer.
      The
      Servicer shall not interfere with the Mortgagor’s freedom of choice in selecting
      either his insurance carrier or agent, provided,
      however,
      that
      the Servicer shall not accept any such insurance policies from insurance
      companies unless such companies currently reflect a general policy rating of
      B:VI or better in Best’s Key Rating Guide and are licensed to do business in the
      state wherein the property subject to the policy is located.

    

    
      
         

      

      
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    Section
      3.11. Maintenance
      of Mortgage Impairment Insurance Policy.

    

    In
      the
      event that the Servicer shall obtain and maintain a blanket policy issued by
      an
      insurer that has a general policy rating of B:VI or better in Best’s Key Rating
      Guide insuring against hazard losses on all of the Mortgage Loans, then, to
      the
      extent such policy provides coverage in an amount equal to the amount required
      pursuant to Section 3.10 and otherwise complies with all other requirements
      of Section 3.10, it shall conclusively be deemed to have satisfied its
      obligations as set forth in Section 3.10, it being understood and agreed that
      such policy may contain a deductible clause, in which case the Servicer shall,
      in the event that there shall not have been maintained on the related Mortgaged
      Property or REO Property a policy complying with Section 3.10, and there
      shall have been a loss which would have been covered by such policy, deliver
      to
      the Trustee for deposit in the Distribution Account the amount not otherwise
      payable under the blanket policy because of such deductible clause, which amount
      shall not be reimbursable to the Servicer from the Trust Fund. In connection
      with its activities as servicer of the Mortgage Loans, the Servicer agrees
      to
      prepare and present, on behalf of the Trustee, claims under any such blanket
      policy in a timely fashion in accordance with the terms of such policy. Upon
      request of the Trustee, the Servicer shall cause to be delivered to the Trustee
      a certified true copy of such policy and a statement from the insurer thereunder
      that such policy shall in no event be terminated or materially modified without
      thirty days prior written notice to the Trustee.

    

    
      
         

      

      
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    Section
      3.12. Fidelity
      Bond, Errors and Omissions Insurance.

    

    The
      Servicer shall maintain, at its own expense, a blanket fidelity bond (the
“Fidelity
      Bond”)
      and an
      errors and omissions insurance policy, with broad coverage with financially
      responsible companies on all officers, employees or other persons acting in
      any
      capacity with regard to the Mortgage Loans to handle funds, money, documents
      and
      papers relating to the Mortgage Loans. The Fidelity Bond and errors and
      omissions insurance shall be in the form of the Mortgage Banker’s Blanket Bond
      and shall protect and insure the Servicer against losses, including forgery,
      theft, embezzlement, fraud, errors and omissions and negligent acts of such
      persons. Such Fidelity Bond shall also protect and insure the Servicer against
      losses in connection with the failure to maintain any insurance policies
      required pursuant to this Agreement and the release or satisfaction of a
      Mortgage Loan without having obtained payment in full of the indebtedness
      secured thereby. No provision of this Section 3.12 requiring the Fidelity Bond
      and errors and omissions insurance shall diminish or relieve the Servicer from
      its duties and obligations as set forth in this Agreement. The minimum coverage
      under any such bond and insurance policy shall be at least equal to the
      corresponding amounts required by Fannie Mae in the Fannie Mae MBS Selling
      and
      Servicing Guide or by Freddie Mac in the Freddie Mac Servicer’s Guide. Upon the
      Trustee’s request, the Servicer shall cause to be delivered to the requesting
      party proof of coverage of the Fidelity Bond and errors and omissions insurance
      policy and a statement that the surety and the insurer shall endeavor to notify
      the Trustee within thirty (30) days prior to such Fidelity Bond and errors
      and
      omissions insurance policy’s termination or material modification.

    

    Section
      3.13. Title,
      Management and Disposition of REO Property and Certain Delinquent Mortgage
      Loans.

    

    (a) In
      the
      event that title to a Mortgaged Property is acquired in foreclosure or by deed
      in lieu of foreclosure, the deed or certificate of sale shall be taken (pursuant
      to a limited power of attorney to be provided by the Trustee to the Servicer)
      in
      the name of the Trustee or a nominee thereof (which nominee shall not be the
      Servicer), on behalf of the Certificateholders, or in the event the Trustee
      or a
      nominee thereof (which nominee shall not be the Servicer) is not authorized
      or
      permitted to hold title to real property in the state where the REO Property
      is
      located, or would be adversely affected under the “doing business” or tax laws
      of such state by so holding title, the deed or certificate of sale shall be
      taken in the name of such Person or Persons as shall be consistent with an
      Opinion of Counsel obtained by the Servicer from an attorney duly licensed
      to
      practice law in the state where the REO Property is located. Any Person or
      Persons holding such title other than the Trustee shall acknowledge in writing
      that such title is being held as nominee for the benefit of the Trustee. The
      Trustee’s name shall be placed on the title to such REO Property solely as the
      Trustee hereunder and not in its individual capacity. The Servicer shall ensure
      that such title to such REO Property references this Agreement and the Trustee’s
      capacity hereunder.

    

    (b) In
      the
      event that the Trust Fund acquires any REO Property as aforesaid or otherwise
      in
      connection with a default or imminent default on a Mortgage Loan, the Servicer
      shall dispose of such REO Property before the end of the third calendar year
      beginning after the year of its acquisition by the Trust Fund for purposes
      of
      Section 860G(a)(8) of the Code or, at the expense of the Trust Fund,
      request from the Internal Revenue Service, more than 60 days before the day
      on
      which the above-mentioned grace period would otherwise expire, an extension
      of
      the above-mentioned grace period, unless the Servicer obtains an Opinion of
      Counsel, addressed to the Servicer and the Trustee, to the effect that the
      holding by the Trust Fund of such REO Property subsequent to such period will
      not: (i) result in the imposition of any tax on “prohibited transactions”
as defined in Section 860F of the Code; or (ii) cause any REMIC
      constituting part of the Trust Fund to fail to qualify as a REMIC at any time
      that any Certificates are outstanding, in which case the Trust Fund may continue
      to hold such REO Property (subject to any conditions contained in such
      Opinion of Counsel). The Servicer shall be entitled to be reimbursed from the
      Collection Account for any costs incurred in obtaining such Opinion of Counsel,
      as provided in Section 3.05.

    

    
      
         

      

      
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    Subject
      to compliance with applicable laws and regulations as shall at any time be
      in
      force, and notwithstanding any other provisions of this Agreement, no REO
      Property acquired by the Trust Fund shall be rented (or allowed to continue
      to
      be rented) or otherwise used by or on behalf of the Trust Fund in such a manner
      or pursuant to any terms that would: (i) cause such REO Property to fail to
      qualify as “foreclosure property” within the meaning of Section 860G(a)(8)
      of the Code; or (ii) subject any REMIC constituting part of the Trust Fund
      to
      the imposition of any federal income taxes on the income earned from such REO
      Property, including any taxes imposed by reason of Sections 860F or 860G(c)
      of the Code, unless the Servicer has agreed to indemnify and hold harmless
      the
      Trust Fund with respect to the imposition of any such taxes.

    

    The
      Servicer shall manage, conserve, protect and operate each REO Property for
      the
      Certificateholders and the Trust Fund 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 the related
      REMIC 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. The Servicer
      shall cause each REO Property to be inspected promptly upon the acquisition
      of
      title thereto and shall cause each REO Property to be inspected at least
      annually thereafter. The Servicer shall make or cause to be made a written
      report of each such inspection. Such reports shall be retained in the servicing
      file and copies thereof shall be forwarded by the Servicer to the Trustee upon
      request. The Servicer shall attempt to sell the same (and may temporarily rent
      the same) on such terms and conditions as the Servicer deems to be in the best
      interest of the Certificateholders and the Trust Fund.

    

    With
      respect to each REO Property, the Servicer shall account separately for each
      REO
      Property with respect to all funds collected and received in connection with
      the
      operation of such REO Property.

    

    The
      Servicer shall deposit or cause to be deposited, on a daily basis, within two
      Business Days after determining the proper cash application after receipt of
      such funds, in the Collection Account, all revenues received with respect to
      each REO Property and shall withdraw therefrom funds necessary for the proper
      operation, management and maintenance of the related REO Property, including
      the
      cost of maintaining any hazard insurance pursuant to Section 3.10 hereof
      and the fees of any managing agent acting on behalf of the
      Servicer.

    

    
      
         

      

      
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    The
      Servicer shall furnish to the Trustee, on each Servicer Remittance Date, an
      operating statement for each REO Property covering the operation of each REO
      Property for the previous month. Such operating statement shall be accompanied
      by such other information as the Trustee shall reasonably request.

    

    The
      Servicer shall use its best efforts to dispose of the REO Property as promptly
      as is practically consistent with protecting the Certificateholders’
interests.

    

    Each
      REO
      Disposition shall be carried out by the Servicer at such price and upon such
      terms and conditions as the Servicer deems to be in the best interest of the
      Certificateholders. If as of the date title to any REO Property was acquired
      by
      the Servicer there were outstanding unreimbursed Servicing Advances with respect
      to the REO Property or the related Mortgage Loan, the Servicer, upon an REO
      Disposition of such REO Property, shall be entitled to reimbursement for any
      related unreimbursed Servicing Advances from proceeds received in connection
      with such REO Disposition. The proceeds from the REO Disposition, net of any
      payment to the Servicer as provided above, shall be deposited in the Collection
      Account for distribution on the succeeding Servicer Remittance Date in
      accordance with Section 4.01.

    

    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 and an
      Opinion of Counsel is obtained by the Servicer to the effect that such sale
      shall not cause any REMIC constituting part of the Trust Fund to fail to qualify
      as a REMIC).

    

    (c) The
      Servicer may write-off any Second Lien Mortgage Loan that has been Delinquent
      for a period of 180 days or more.

    

    Section
      3.14. Due-on-Sale
      Clauses; Assumption and Substitution Agreements.

    

    When
      a
      Mortgaged Property has been or is about to be conveyed by the Mortgagor, the
      Servicer shall, except as set forth below, to the extent it has knowledge of
      such conveyance or prospective conveyance, exercise its rights to accelerate
      the
      maturity of the related Mortgage Loan under any “due-on-sale” clause contained
      in the related Mortgage or Mortgage Note; provided,
      however,
      that
      the Servicer shall not exercise any such right if the “due-on-sale” clause, in
      the reasonable belief of the Servicer, is not enforceable under applicable
      law.
      An Opinion of Counsel at the expense of the Servicer (which expense shall
      constitute a Servicing Advance) delivered to the Trustee and the Depositor
      to
      the foregoing effect shall conclusively establish the reasonableness of such
      belief. In such event, the Servicer shall make reasonable efforts to enter
      into
      an assumption and modification agreement with the Person to whom such property
      has been or is about to be conveyed, pursuant to which such Person becomes
      liable under the Mortgage Note and, unless prohibited by applicable law or
      the
      Mortgage, the Mortgagor remains liable thereon. If the foregoing is not
      permitted under applicable law, the Servicer is 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
      Mortgagor and becomes liable under the Note. In addition to the foregoing,
      the
      Servicer shall not be required to enforce any “due-on-sale” clause if, in the
      reasonable judgment of the Servicer, entering into an assumption and
      modification agreement with a person to whom such Mortgaged Property shall
      be
      conveyed and releasing the original Mortgagor from liability would be in the
      best interests of the Certificateholders. The Mortgage Loan, as assumed, shall
      conform in all respects to the requirements, representations and warranties
      of
      this Agreement. The Servicer shall notify the Trustee that any such assumption
      or substitution agreement has been completed by forwarding to the Trustee (or
      the Custodian, as the case may be) the original copy of such assumption or
      substitution agreement (indicating the Mortgage File to which it relates) which
      copy shall be added by the Trustee (or the Custodian, as the case may be) to
      the
      related Mortgage File and which 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. The Servicer shall be responsible for recording
      any
      such assumption or substitution agreements. In connection with any such
      assumption or substitution agreement, the Monthly Payment on the related
      Mortgage Loan shall not be changed but shall remain as in effect immediately
      prior to the assumption or substitution, the stated maturity or outstanding
      principal amount of such Mortgage Loan shall not be changed nor shall any
      required monthly payments of principal or interest be deferred or forgiven.
      Any
      fee collected by the Servicer for consenting to any such conveyance or entering
      into an assumption or substitution agreement shall be retained by or paid to
      the
      Servicer as additional servicing compensation.

    

    
      
         

      

      
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    Notwithstanding
      the foregoing paragraph or any other provision of this Agreement, the 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 any assumption which the Servicer may be restricted by
      law
      from preventing, for any reason whatsoever.

    

    Section
      3.15. Notification
      of Adjustments.

    

    On
      each
      Adjustment Date, the Servicer shall make Mortgage Interest Rate adjustments
      for
      each Adjustable-Rate Mortgage Loan in compliance with the requirements of the
      related Mortgage and Mortgage Note and Applicable Regulations. The Servicer
      shall execute and deliver the notices required by each Mortgage and Mortgage
      Note and Applicable Regulations regarding Mortgage Interest Rate adjustments.
      The Servicer also shall provide timely notification to the Trustee of all
      applicable data and information regarding such Mortgage Interest Rate
      adjustments and the Servicer’s methods of implementing such Mortgage Interest
      Rate adjustments. Upon the discovery by the Servicer, the Trustee that the
      Servicer has failed to adjust or has incorrectly adjusted a Mortgage Interest
      Rate or a Monthly Payment pursuant to the terms of the related Mortgage Note
      and
      Mortgage, the Servicer shall deliver to the Trustee for deposit in the
      Distribution Account from its own funds the amount of any interest loss caused
      thereby without reimbursement therefor; provided,
      however,
      the
      Servicer shall be held harmless with respect to any Mortgage Interest Rate
      adjustments made by any servicer prior to the Servicer. Under no circumstances
      shall the Trustee be responsible for monitoring or recalculating any Mortgage
      Interest Rate adjustment by the Servicer.

    

    Section
      3.16. Optional
      Purchases and Sales of Mortgage Loans by Servicer.

    

    The
      Servicer (or an affiliate of the Servicer) may, at its option, purchase a
      Mortgage Loan or REO Property which becomes 120 or more days Delinquent or
      for
      which the Servicer has accepted a deed in lieu of foreclosure, during the period
      commencing on the first day of the calendar quarter succeeding the calendar
      quarter in which the Initial Delinquency Date occurred with respect to such
      Mortgage Loan and ending on the last Business Day of such calendar quarter.
      If
      the Servicer (or an affiliate of the Servicer) does not exercise its purchase
      right with respect to a Mortgage Loan during the period specified in the
      preceding sentence, such Mortgage Loan shall thereafter again become eligible
      for purchase pursuant to the preceding sentence only after the Mortgage Loan
      ceases to be 120 days or more Delinquent and thereafter becomes 120 days
      Delinquent again. The “Initial
      Delinquency Date”
of
      a
      Mortgage Loan shall mean the date on which the Mortgage Loan first became 120
      days Delinquent. Prior to repurchase pursuant to this Section 3.16, the
      Servicer shall be required to continue to make monthly advances pursuant to
      Section 4.07. The Servicer shall not use any procedure in selecting
      Mortgage Loans to be repurchased which is materially adverse to the interests
      of
      the Certificateholders. The Servicer shall purchase such (i) delinquent Mortgage
      Loan at a price equal to the Principal Balance of the Mortgage Loan plus accrued
      interest thereon at the Mortgage Interest Rate from the date to which interest
      has last been paid to the Trust Fund to the date of purchase plus any
      unreimbursed Servicing Advances and Advances or (ii) REO Property at its fair
      market value as determined in good faith by the Servicer. Any such repurchase
      of
      a Mortgage Loan or REO Property pursuant to this Section 3.16 shall be
      accomplished by delivery to the Trustee for deposit in the Distribution Account
      of the amount of the purchase price. The Trustee shall immediately effectuate
      the conveyance of such delinquent Mortgage Loan or REO Property to the Servicer
      to the extent necessary, including the prompt delivery of all documentation
      to
      the Servicer.

    

    
      
         

      

      
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    Section
      3.17. Trustee
      to Cooperate; Release of Files.

    

    (a) Upon
      the
      payment in full of any Mortgage Loan (including any liquidation of such Mortgage
      Loan through foreclosure or otherwise, or the receipt by the Servicer of a
      notification that payment in full will be escrowed in a manner customary for
      such purposes), the Servicer shall deliver to the Custodian two executed copies
      of a completed “Request for Release” in the form of Exhibit
      E.
      Upon
      receipt of such Request for Release of Documents, the Custodian shall promptly
      release the related Mortgage File, in trust to (i) the Servicer, or
      (ii) such other party identified in the related Request for Release. Upon
      any such payment in full, or the receipt of such notification that such funds
      have been placed in escrow, the Servicer shall direct the Trustee in writing
      to
      execute an instrument of satisfaction (or assignment of Mortgage without
      recourse, representation or warranty) regarding the Mortgaged Property relating
      to such 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 payment in full, it being understood and agreed that no
      expense incurred in connection with such instrument of satisfaction or
      assignment, as the case may be, shall be chargeable to the Collection Account.
      In lieu of executing any such satisfaction or assignment, as the case may be,
      the Servicer may prepare and submit to the Trustee a satisfaction (or assignment
      without recourse, representation or warranty if requested by the Person or
      Persons entitled thereto) in form for execution by the Trustee with all
      requisite information completed by the Servicer; in such event, the Trustee
      shall execute and acknowledge such satisfaction or assignment, as the case
      may
      be, and deliver the same with the related Mortgage File, as
      aforesaid.

    

    (b) From
      time
      to time and as appropriate in the servicing of any Mortgage Loan, including,
      without limitation, foreclosure or other comparable conversion of a Mortgage
      Loan or collection under any insurance policy relating to a Mortgage Loan,
      the
      Trustee shall (except in the case of the payment or liquidation pursuant to
      which the related Mortgage File is released to an escrow agent or an employee,
      agent or attorney of the Trustee), upon written request of the Servicer and
      delivery to the Custodian of two executed copies of a “Request for Release” in
      the form of Exhibit
      E
      signed
      by a Servicing Officer, release the related Mortgage File to the Servicer and
      shall execute such documents as shall be necessary to the prosecution of any
      such proceedings, including, without limitation, an assignment without recourse,
      representation or warranty of the related Mortgage to the Servicer. Such receipt
      shall obligate the Servicer to return the Mortgage File to the Custodian when
      the need therefor by the Servicer no longer exists unless the Mortgage Loan
      shall be liquidated, in which case, upon receipt of a Request for Release
      evidencing such liquidation, the receipt shall be released by the Trustee (or
      the Custodian, as the case may be) to the Servicer.

    

    
      
         

      

      
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    (c) Subject
      to Section 3.01, the Servicer shall have the right to accept applications of
      Mortgagors for consent to (i) partial releases of Mortgages,
      (ii) alterations, (iii) removal, demolition or division of properties
      subject to Mortgages and (iv) second mortgage subordination agreements. No
      application for approval shall be considered by the Servicer unless: (w) it
      has received an Opinion of Counsel, addressed to the Trustee (which opinion
      shall not be an expense of the Trustee or the Trust Fund) that such sale,
      disposition, substitution, acquisition or contribution will not affect adversely
      the status of any REMIC constituting part of the Trust Fund as a REMIC or cause
      any REMIC constituting part of the Trust Fund to be subject to a tax on
“prohibited transactions” or “contributions” pursuant to the REMIC Provisions;
      (x) the provisions of the related Note and Mortgage have been complied
      with; (y) the Combined Loan-to-Value Ratio and debt-to-income ratio after
      any release does not exceed the maximum Combined Loan-to-Value Ratio and
      debt-to-income ratio established in accordance with the underwriting standards
      of the Mortgage Loans; and (z) the lien priority of the related Mortgage is
      not affected. Upon receipt by the Trustee of a Servicing Officer’s certificate
      setting forth the action proposed to be taken in respect of a particular
      Mortgage Loan and certifying that the criteria set forth in the immediately
      preceding sentence have been satisfied, the Trustee shall execute and deliver
      to
      the Servicer the consent or partial release so requested by the Servicer. A
      proposed form of consent or partial release, as the case may be, shall accompany
      any Servicing Officer’s certificate delivered by the Servicer pursuant to this
      paragraph.

    

    Section
      3.18. Servicing
      Compensation.

    

    As
      compensation for its activities hereunder, the Servicer shall be entitled to
      retain the amount of the Servicing Fee with respect to each Mortgage Loan
      (including REO Properties). The Servicer shall be entitled to retain additional
      servicing compensation in the form of Prepayment Interest Excess, release fees,
      bad check charges, assumption fees, modification or extension fees, late payment
      charges, customary real estate referral fees or any other service-related fees,
      Insurance Proceeds and Liquidation Proceeds not required to be deposited in
      the
      Collection Account or the Distribution Account and similar items, to the extent
      collected from Mortgagors.

    

    Section
      3.19. Annual
      Statement as to Compliance.

    

    The
      Servicer shall deliver or cause to be delivered, and shall cause each
      Subservicer engaged by the Servicer to deliver or cause to be delivered to
      the
      Depositor, the Rating Agencies and the Trustee on or before March 15th of each
      calendar year, commencing in 2008, an Officer’s Certificate stating, as to each
      signatory thereof, that (i) a review of the activities of the Servicer or such
      Subservicer, as applicable, during the preceding calendar year and of
      performance under this Agreement, or the applicable Subservicing Agreement,
      as
      the case may be, has been made under such officer’s supervision, and (ii) to the
      best of such officer’s knowledge, based on such review, the Servicer or any
      Subservicer, and each Subcontractor utilized by the Servicer and determined
      by
      the Servicer pursuant to Section 3.30(e) to be “participating in a servicing
      function” within the meaning of Item 1122 of Regulation AB, as applicable, has
      fulfilled all of its obligations under this Agreement in all material respects
      throughout such year, or, if there has been a failure to fulfill any such
      obligation in any material respect, specifying each such failure known to such
      officers and the nature and status thereof. Promptly after receipt of such
      Officer’s Certificate, the Depositor shall review each such Officer’s
      Certificate and, if applicable, consult with the Servicer as to the nature
      of
      any defaults by the Servicer or any related Subservicer in the fulfillment
      of
      the Servicer’s or any related Subservicer’s obligations. The obligations of the
      Servicer or a Subservicer under this Section apply to any Servicer that serviced
      a Mortgage Loan during the applicable period, whether or not the Servicer or
      a
      Subservicer is acting as the Servicer or a Subservicer at the time such
      Officer’s Certificate is required to be delivered. For purposes of (ii) above,
      the Servicer or Subservicer will be entitled to rely reasonably upon a
      certification of any Subcontractor not affiliated with the Servicer or
      Subservicer. Notwithstanding anything to the contrary set forth herein, the
      statement required under this Section 3.19 with respect to any Subservicer
      or
      Subcontractor shall not be required to be delivered with respect to any year
      in
      which an annual report on Form 10-K for the Trust is not required to be filed
      pursuant to the Exchange Act.

    

    
      
         

      

      
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    Section
      3.20. Assessment
      of Compliance with Servicing Criteria; Independent Public Accountants’
Attestation.

    

    (a) Not
      later
      than March 15th of each calendar year commencing in 2008, the Servicer and
      the
      Custodian (pursuant to the Custodial Agreement), each shall deliver, and the
      Servicer shall cause each Subservicer engaged by the Servicer and the Servicer
      shall cause each Subcontractor utilized by the Servicer and determined by the
      Servicer pursuant to Section 3.30(e) to be “participating in a servicing
      function” within the meaning of Item 1122 of Regulation AB, to deliver, and not
      later than March 15th of each calendar year in which the annual report on Form
      10-K for the Trust contemplated by this Agreement is required to be filed in
      accordance with the Exchange Act and the rules and regulations of the
      Commission, (or, if such March 15th is not a Business Day, the immediately
      preceding Business Day), the Trustee shall deliver, and the Trustee shall cause
      each Subcontractor utilized by the Trustee and determined by the Trustee to
      be
“participating in a servicing function” within the meaning of Item 1122 of
      Regulation AB, to deliver, each at its own expense, to the Depositor and the
      Trustee, with a copy to the Rating Agencies, a report on an assessment of
      compliance with the Servicing Criteria that contains (A) a statement by such
      party of its responsibility for assessing compliance with the Servicing Criteria
      applicable to it, (B) a statement that such party used the Servicing Criteria
      to
      assess compliance with the applicable Servicing Criteria, (C) such party’s
      assessment of compliance with the applicable Servicing Criteria as of and for
      the period ending the end of the fiscal year covered by the Form 10-K required
      to be filed pursuant to Section 3.29, setting forth any material instance of
      noncompliance with the applicable Servicing Criteria, and (D) a statement that
      a
      registered public accounting firm has issued an attestation report on such
      Person’s assessment of compliance with the applicable Servicing Criteria as of
      and for such period. Each such assessment of compliance report shall be
      delivered to the Depositor and shall address each of the Servicing Criteria
      applicable to such party specified on a certification substantially in the
      form
      of Exhibit
      S
      hereto
      delivered to the Depositor on the Closing Date. Notwithstanding anything to
      the
      contrary set forth herein, the statements and attestations required under this
      Section 3.20 with respect to any Subservicer or Subcontractor shall not be
      required to be delivered with respect to any year in which an annual report
      on
      Form 10-K for the Trust is not required to be filed pursuant to the Exchange
      Act.

    

    
      
         

      

      
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    (b) Not
      later
      than March 15th of each calendar year commencing in 2008, the Servicer and
      the
      Custodian (pursuant to the Custodial Agreement) shall, and the Servicer shall
      cause each Subservicer engaged by the Servicer and each Subcontractor utilized
      by the Servicer and determined by the Servicer pursuant to Section 3.30(e)
      to be
“participating in a servicing function” within the meaning of Item 1122 of
      Regulation AB, to, cause, and not later than March 15 of each calendar year
      in
      which the Depositor’s annual report on Form 10-K with respect to the
      transactions contemplated by this Agreement is required to be filed in
      accordance with the Exchange Act and the rules and regulations of the Commission
      (or, if such March 15 is not a Business Day, the immediately preceding Business
      Day), the Trustee shall cause, each at its own expense, a registered public
      accounting firm (which may also render other services to such party) and that
      is
      a member of the American Institute of Certified Public Accountants to furnish
      a
      report to the Trustee and the Depositor, with a copy to the Rating Agencies,
      to
      the effect that (i) it has obtained a representation regarding certain matters
      from the management of such Person, which includes an assertion that such Person
      has complied with the Servicing Criteria and (ii) on the basis of an examination
      conducted by such firm in accordance with standards for attestation engagements
      issued or adopted by The Public Company Accounting Oversight Board, it is
      expressing an opinion as to whether such Person’s compliance with the Servicing
      Criteria was fairly stated in all material respects, or it cannot express an
      overall opinion regarding such Person’s assessment of compliance with the
      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. Each such related accountant’s
      attestation report shall be in accordance with Rules 1-02(a)(3) and 2-02(g)
      of
      Regulation S-X under the Securities Act and the Exchange Act. Notwithstanding
      anything to the contrary set forth herein, the statements and attestations
      required under this Section 3.20 with respect to any Subservicer or
      Subcontractor shall not be required to be delivered with respect to any year
      in
      which an annual report on Form 10-K for the Trust is not required to be filed
      pursuant to the Exchange Act.

    

    (c) On
      the
      Closing Date, the Servicer, the Trustee and the Custodian (pursuant to the
      Custodial Agreement) shall furnish to the Depositor the Servicing Criteria,
      substantially in the form of Exhibit
      S
      hereto
      appropriately completed, to be subject of the assessment of compliance to be
      delivered pursuant to Section 3.20(a) by each of them (and in the case of the
      Servicer, each Subservicer engaged by such Servicer and in the case of the
      Servicer and Trustee each Subcontractor utilized by the Servicer or the Trustee,
      as applicable, and determined by the Servicer pursuant to Section 3.30(e) or
      the
      Trustee, as applicable, to be “participating in a servicing function” within the
      meaning of Item 1122 of Regulation AB).

    

    
      
         

      

      
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    Section
      3.21. Access
      to Certain Documentation and Information Regarding the Mortgage
      Loans.

    

    The
      Servicer shall provide to the Trustee, Certificateholders that are federally
      insured savings and loan associations, the Office of Thrift Supervision, the
      FDIC and the supervisory agents and examiners of each of the foregoing (which,
      in the case of supervisory agents and examiners, may be required by applicable
      state and federal regulations) access to the documentation regarding the
      Mortgage Loans, such access being afforded without charge but only upon
      reasonable request and during normal business hours at the offices of the
      Servicer designated by it.

    

    Section
      3.22. Reserved.

    

    Section
      3.23. Obligations
      of the Servicer in Respect of Compensating Interest.

    

    Not
      later
      than the close of business on each Servicer Remittance Date, the Servicer shall
      deliver to the Trustee for deposit in the Distribution Account an amount
      (“Compensating
      Interest”)
      equal
      to the lesser of (A) the aggregate of the Prepayment Interest Shortfalls on
      the Mortgage Loans for the related Distribution Date resulting from Principal
      Prepayments in Full on the Mortgage Loans during the related Prepayment Period
      and (B) 50% of (x) its aggregate Servicing Fee received in the related
      Collection Period and (y) the Excess Servicing Fee with respect to such
      Distribution Date. The Servicer shall apply Compensating Interest to offset
      any
      Prepayment Interest Shortfalls. The Servicer shall not have the right to
      reimbursement for any amounts remitted to the Trustee in respect of Compensating
      Interest. Such amounts so remitted shall be included in the Interest Remittance
      Amount and distributed therewith on the next Distribution Date. The Servicer
      shall not be obligated to pay Compensating Interest with respect to Relief
      Act
      Interest Shortfalls, shortfalls due to bankruptcy proceedings or Principal
      Prepayments in part.

    

    Section
      3.24. Obligations
      of the Servicer in Respect of Mortgage Interest 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
      Interest Rates, Monthly Payments or Principal Balances that were made by the
      Servicer in a manner not consistent with the terms of the related Mortgage
      Note
      and this Agreement, the Servicer, upon discovery or receipt of notice thereof,
      immediately shall deliver to the Trustee 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 Depositor and any successor servicer
      in respect of any such liability. Such indemnities shall survive the termination
      or discharge of this Agreement.

    

    Section
      3.25. Investment
      of Funds in the Collection Account and the Distribution Account.

    

    (a) The
      Servicer (with respect to the Collection Account) and the Trustee (with respect
      to the Distribution Account) may direct any depository institution maintaining
      the Collection Account or Distribution Account, as the case may be, to invest
      the funds in the Collection 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 Trustee 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 Trustee is the
      obligor thereon. In the absence of such direction, funds in the Collection
      Account and the Distribution Account shall remain uninvested. All such Permitted
      Investments shall be held to maturity, unless payable on demand. Any investment
      of funds in the Collection Account or Distribution Account shall be made in
      the
      name of the Trustee or in the name of a nominee of the Trustee. The Trustee
      shall be entitled to sole possession (except with respect to investment
      direction of funds held in the Collection Account) over each such investment
      and
      the income thereon, and any certificate or other instrument evidencing any
      such
      investment shall be delivered directly to the Trustee 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 the Collection
      Account are at any time invested in a Permitted Investment payable on demand,
      the Trustee shall at the direction of the Servicer:

    

    
      
         

      

      
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              (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 determination
                by a
                Responsible Officer of the Trustee that such Permitted Investment
                would
                not constitute a Permitted Investment in respect of funds thereafter
                on
                deposit in the Collection Account.

            

    

    

    (b) All
      income and gain realized from the investment of funds in the Collection Account
      shall be for the benefit of the Servicer. All income and gain realized from
      the
      investment of funds in the Distribution Account shall be for the benefit of
      the
      Trustee. The Servicer shall deposit in the Collection Account and the Trustee
      shall deposit in the Distribution 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.

    

    (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 8.01 and Section 8.02(a)(v), upon the
      request of the Holders of Certificates representing more than 50% of the Voting
      Rights allocated to any Class of Certificates, shall take such action as may
      be
      appropriate to enforce such payment or performance, including the institution
      and prosecution of appropriate proceedings.

    

    Except
      as
      set forth in clause (b) above with respect to the Distribution Account, the
      Trustee shall not in any way be held liable by reason of any insufficiency
      in
      any Account held by the Trustee resulting from any investment loss on any
      Permitted Investment included therein (except to the extent that the Trustee
      is
      the obligor and has defaulted thereon).

    

    
      
         

      

      
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    Section
      3.26. Liability
      of Servicer; Indemnification.

    

    (a) Subject
      to clause (b) below and Section 6.03, the Servicer (except the Trustee if it
      is
      required to succeed the Servicer hereunder) indemnifies and holds the Trustee,
      the Seller, the Depositor and each Certificateholder harmless against any and
      all claims, losses, penalties, fines, forfeitures, reasonable legal fees and
      related costs, judgments, and any other costs, fees and expenses that the
      Trustee, the Depositor and any Certificateholder may sustain in any way related
      to the failure of the Servicer to perform its duties and service the Mortgage
      Loans in compliance with the Servicing Standards. The Servicer shall immediately
      notify the Trustee, the Depositor and each Certificateholder if a claim is
      made
      that may result in such claims, losses, penalties, fines, forfeitures, legal
      fees or related costs, judgments, or any other costs, fees and expenses, and
      the
      Servicer shall assume (with the consent of the Trustee) the defense of any
      such
      claim and pay all expenses in connection therewith, including reasonable counsel
      fees, and promptly pay, discharge and satisfy any judgment or decree which
      may
      be entered against the Servicer, Trustee, the Depositor and/or Certificateholder
      in respect of such claim. The provisions of this Section 3.26 shall survive
      the
      termination of this Agreement and the payment of the outstanding
      Certificates.

    

    (b) None
      of
      the Depositor, the Seller, the Servicer, or any of the directors, officers,
      employees or agents of the Depositor, the Seller or the 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 Seller or the Servicer
      or
      any such Person against any breach of warranties or representations made herein,
      or against any specific liability imposed on the Servicer for a breach of the
      Servicing Standard, or against any liability which would otherwise be imposed
      by
      reason of its respective willful misfeasance, bad faith, fraud or negligence
      in
      the performance of its duties or by reasons of negligent disregard of its
      respective obligations or duties hereunder.

    

    The
      Depositor, the Servicer, the Seller and any director, officer, employee or
      agent
      of the Depositor, the Seller or the Servicer, may rely in good faith on any
      document of any kind which, prima facie, is properly executed and submitted
      by
      any appropriate Person with respect to any matters arising hereunder. The
      Depositor, the Servicer, the Seller, and any director, officer, employee or
      agent of the Depositor, the Seller or the 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 or the Certificates,
      other than any loss, liability or expense incurred in connection with any legal
      action incurred by reason of its respective misfeasance, bad faith, fraud or
      negligence, a breach of a representation or warranty hereunder or (in the case
      of the Servicer) a breach of the Servicing Standard in the performance of its
      respective duties or by reason of negligent disregard of its respective
      obligations or duties hereunder. Neither the Depositor, the Seller nor the
      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 expose it to any expense or liability;
      provided,
      however,
      that
      the Depositor, the Seller or the Servicer may in its discretion undertake any
      action related to its obligations hereunder 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.

    

    
      
         

      

      
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    Section
      3.27. Reports
      of Foreclosure and Abandonment of Mortgaged Properties.

    

    On
      or
      before the last day of February of each year beginning in 2008, the Servicer
      shall file the reports of foreclosure and abandonment of any Mortgaged Property
      required by Section 6050J of the Code with the Internal Revenue Service and
      provide an Officer’s Certificate certifying its compliance with this Section
      3.27 to the Trustee. The reports from the Servicer shall be in form and
      substance sufficient to meet the reporting requirements imposed by such
      Section 6050J.

    

    Section
      3.28. Protection
      of Assets.

    

    (a) Except
      for transactions and activities entered into in connection with the
      securitization that is the subject of this Agreement, the Trust is not
      authorized and has no power to:

    

    (1) borrow
      money or issue debt;

    

    (2) merge
      with another entity, reorganize, liquidate or sell assets; or

    

    (3) engage
      in
      any business or activities.

    

    (b) Each
      party to this Agreement agrees that it will not file an involuntary bankruptcy
      petition against the Trustee or the Trust Fund or initiate any other form of
      insolvency proceeding until after the Certificates have been paid.

    

    Section
      3.29. Periodic
      Filings.

    

    (a) The
      Trustee and the Servicer shall reasonably cooperate with the Depositor in
      connection with the reporting requirements of the Trust under the Exchange
      Act.
      As set forth below, the Trustee shall prepare for execution by the Servicer
      any
      Form 10-K and shall prepare for execution by the Depositor any Forms 8-K, 10-D
      or 12b-25 required by the Exchange Act and the rules and regulations of the
      Commission thereunder, in order to permit the timely filing thereof, and the
      Trustee shall file (via the Commission’s Electronic Data Gathering and Retrieval
      System) such Forms executed by the Servicer or Depositor, as the case may
      be.

    

    (b) Each
      Form
      10-D shall be filed by the Trustee within 15 days after each Distribution Date,
      including (i) a copy of the Monthly Statement to the Certificateholders for
      such
      Distribution Date as an exhibit thereto; and (ii) such other information
      (“Additional
      Form 10-D Disclosure”)
      as is
      required by Form 10-D as listed on Exhibit
      T-2
      and
      provided by the party listed on Exhibit
      T-2
      to the
      Trustee, the Servicer and the Depositor in the manner provided in the following
      paragraph; provided that such information is provided to the Trustee no later
      than the fifth Business Day immediately following the related Distribution
      Date.
      The Trustee shall not be responsible for determining what information is
      required to be filed on Form 10-D (unless such information is specific to the
      Trustee or any Servicing Function Participant utilized by the Trustee, in which
      case the Trustee will be responsible for making such a determination) or for
      any
      filing that is not made on a timely basis in accordance with Regulation AB
      in
      the event that such information is not delivered to the Trustee on or prior
      to
      the date specified in Section 4.07 hereof. The Trustee will have no duty or
      liability for any failure hereunder to determine or prepare any Additional
      Form
      10-D Disclosure, except as set forth in the next paragraph.

    

    
      
         

      

      
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    As
      set
      forth on Exhibit
      T-2
      hereto,
      within 5 calendar days after the related Distribution Date, (i) the parties
      described on Exhibit
      T-2
      shall be
      required to provide to the Trustee and to the Depositor, to the extent known
      by
      a responsible officer thereof, in EDGAR-compatible format, or in such other
      format as otherwise agreed upon by the Trustee and such party, the form and
      substance of any Additional Form 10-D Disclosure, if applicable, together with
      an Additional Disclosure Notification in the form of Exhibit
      U
      hereto
      (an “Additional
      Disclosure Notification”)
      and
      (ii) the Depositor will approve, as to form and substance, or disapprove, as
      the
      case may be, the inclusion of the Additional Form 10-D Disclosure on Form 10-D.
      The Trustee has no duty under this Agreement to monitor or enforce the
      performance by the parties listed on Exhibit
      T-2
      (other
      than with respect to the Trustee or any Servicing Function Participant utilized
      by the Trustee) of their duties under this paragraph or proactively solicit
      or
      procure from such parties any Additional Form 10-D Disclosure.

    

    After
      preparing the Form 10-D, the Trustee shall forward electronically a copy of
      the
      Form 10-D to the Depositor and the Servicer no later than the 10th
      calendar
      day after the related Distribution Date. Within two Business Days after receipt
      of such copy, but no later than the 12th calendar day after the Distribution
      Date, the Depositor and the Servicer shall notify the Trustee in writing (which
      may be furnished electronically) of any changes to or approval of such Form
      10-D
      and the Depositor 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 Trustee will
      follow the procedures set forth in Section 3.29(h). Promptly (but no later
      than
      one Business Day) after filing with the Commission, the Trustee will make
      available on its internet website a final executed copy of each Form 10-D filed
      by the Trustee. Each party to this Agreement acknowledges that the performance
      by the Trustee of its duties under this Section 3.29(b) related to the timely
      preparation, arrangement for execution and filing of Form 10-D is contingent
      upon such parties strictly observing all applicable deadlines in the performance
      of their duties under this Section 3.29(b). The Trustee shall not 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 Trustee’s inability or failure to obtain or
      receive, on a timely basis, any information from any other party hereto (other
      than any Servicing Function Participant engaged by the Trustee) or any Servicing
      Function Participant of any 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.

    

    On
      or
      prior to the 90th
      day
      after the end of each year commencing in 2008 (or such earlier date as may
      be
      required by the Exchange Act and the Rules and Regulations of the Commission),
      the Trustee shall file a Form 10-K. Such Form 10-K shall include the information
      listed on Exhibit
      T-3
      and each
      party shall provide the information they are responsible for pursuant to
Exhibit
      T-3.
      Such
      Form 10-K shall include as exhibits (to the extent they have been delivered
      to
      the Trustee in accordance with the timeframes contained in this Agreement)
      (i)
      each annual statement as to compliance described under Section 3.19 of this
      Agreement and (ii) the annual report on assessments of compliance and annual
      independent public accountant’s servicing reports described under Section 3.20
      of the Agreement, in each case to the extent they have been timely delivered
      to
      the Trustee. Promptly upon receipt by the Servicer of (i) (A) any Officer’s
      Certificate relating to the Trustee’s or Subservicer’s annual statement as to
      compliance delivered pursuant to Section 3.19 of this Agreement and (B) any
      annual report on assessment of compliance and annual independent public
      accountant’s servicing report, pursuant to Section 3.20 of this Agreement, the
      Servicer shall review such Officer’s Certificate’s and reports. As part of the
      Form 10-K required to be filed pursuant to this Section 3.29, the Servicer
      shall
      include (i) each such annual statement as to compliance, annual report on
      assessment of servicing compliance with servicing criteria and annual
      independent public accountant’s servicing report required to be delivered under
      this Agreement. In addition, if there is any material instance of non-compliance
      disclosed in a report delivered pursuant to Section 3.19 or 3.20 of this
      Agreement, a description of each material instance of non-compliance shall
      be
      provided to the Trustee and the Trustee shall include such disclosure in the
      Form 10-K required to be filed pursuant to this Section 3.29. If the Trustee
      is
      unable to file such Form 10-K by the applicable due date, the Trustee shall
      prepare for execution by the Servicer and file a Form 12b-25 not later than
      one
      Business Day following the due date for such Form 10-K. Within 5 days following
      the filing of such Form 12b-25, the Trustee shall prepare and file the related
      Form 10-K. The Form 10-K shall also include a certification in the form attached
      hereto as Exhibit
      P-1,
      with
      such changes as may be necessary or appropriate as a result of changes
      promulgated by the Commission (the “Sarbanes
      Certification”),
      which
      shall, except as described below, be signed by the senior officer in charge
      of
      the servicing function of the Servicer. The Trustee shall have no liability
      with
      respect to any failure to properly prepare or file such periodic reports
      resulting from or relating to the Trustee’s inability or failure to obtain any
      information not resulting from its own negligence, willful misconduct or bad
      faith. If an annual report on assessment of compliance and the related annual
      independent public accountant’s servicing report described under Section 3.20 of
      this Agreement is not included as an exhibit to such Form 10-K, the party
      responsible for delivering such report shall provide disclosure that such report
      is not included and an explanation why such report is not included.

    

    
      
         

      

      
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    Any
      disclosure or information in addition to the attachments listed 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
      T-3
      to the
      Depositor, the Servicer and the Trustee and directed and approved by the
      Depositor and the Servicer pursuant to the following paragraph, and the Trustee
      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.

    

    As
      set
      forth on Exhibit
      T-3
      hereto,
      no later than March 15 of each year, commencing in 2008, (i) the parties
      described on Exhibit
      T-3
      shall be
      required to provide to the Trustee, the Servicer and the Depositor, to the
      extent known by a responsible officer thereof, in EDGAR-compatible format,
      or in
      such other format as otherwise agreed upon by the Trustee and such party, the
      form and substance of any Additional Form 10-K Disclosure, together with an
      Additional Disclosure Notification, and (ii) the Depositor and the Servicer
      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 Trustee
      has
      no duty under this Agreement to monitor or enforce the performance by the
      parties listed on Exhibit
      T-3
      (other
      than with respect to the Trustee or any Servicing Function Participant engaged
      by the Trustee) of their duties under this paragraph or proactively solicit
      or
      procure from such parties any Additional Form 10-K Disclosure information.
      The
      Servicer will be responsible for any reasonable fees and expenses assessed
      or
      incurred by the Trustee in connection with including any Additional Form 10-K
      Disclosure on Form 10-K pursuant to this paragraph unless the party required
      to
      provide the Additional Form 10-K Disclosure information is the Depositor as
      specified in Exhibit T-3, in which case the Depositor shall be responsible
      for
      such fees and expenses.

    

    
      
         

      

      
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    After
      preparing the Form 10-K, the Trustee shall forward electronically a copy of
      the
      Form 10-K to the Depositor and the Servicer. Within three Business Days after
      receipt of such copy, but no later than March 25th, the Depositor and the
      Servicer shall notify the Trustee in writing (which may be furnished
      electronically) of any changes to or approval of such Form 10-K and the Servicer
      shall cause a senior officer in charge of the servicing function of the Servicer
      shall return a signed copy of the Form 10-K to the Trustee. If a Form 10-K
      cannot be filed on time or if a previously filed Form 10-K needs to be amended,
      the Trustee will follow the procedures set forth in Section 3.29(e). Promptly
      (but no later than one Business Day) after filing with the Commission, the
      Trustee will make available on its internet website a final executed copy of
      each Form 10-K filed by the Trustee. The parties to this Agreement acknowledge
      that the performance by the Trustee of its duties under this Section 3.29(c)
      related to the timely preparation, arrangement for execution and filing of
      Form
      10-K is contingent upon such parties strictly observing all applicable deadlines
      in the performance of their duties under this Section 3.29(c), Section 3.29(d),
      Section 3.19 and Section 3.20. The Trustee shall not have any liability for
      any
      loss, expense, damage or claim arising out of or with respect to any failure
      to
      properly prepare, arrange for execution and/or timely file such Form 10-K,
      where
      such failure results from the Trustee’s inability or failure to obtain or
      receive, on a timely basis, any information from any other party hereto or
      any
      Servicing Function Participant (other than the Trustee or any Servicing Function
      Participant utilized by the Trustee) needed to prepare, arrange for execution
      or
      file such Form 10-K, not resulting from its own negligence, bad faith or willful
      misconduct.

    

    In
      connection with the Form 10-K, the Trustee shall sign a back-up certification
      (in the form attached hereto as Exhibit
      P-2)
      for the
      benefit of the Servicer and its officers, directors and Affiliates. Each such
      back-up certification shall be delivered to the Servicer no later than March
      15th of each year (or if such day is not a Business Day, the immediately
      preceding Business Day) and the Servicer shall deliver the Sarbanes
      Certification to be filed with each Form 10-K to the Trustee and the Depositor
      no later than March 20th of each year (or if such day is not a Business Day,
      the
      immediately preceding Business Day). In the event that prior to the filing
      date
      of the Form 10-K in March of each year, if any party hereto has actual knowledge
      of information material to the Sarbanes Certification, that party shall promptly
      notify the Servicer and each of the other parties signing the
      certifications.

    

    In
      addition, (i) the Trustee shall, subject to Sections 8.01 and 8.02 hereof,
      indemnify and hold harmless the Depositor, the Servicer and their 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 (other than punitive damages) arising out of or
      based upon (A) any inaccuracy in the Assessment of Compliance with the Servicing
      Criteria pursuant to Section 3.20 provided by the Trustee or any Servicing
      Function Participant appointed by the Trustee and (B) any inaccuracy in the
      back-up certification provided by the Trustee pursuant to this Section 3.29(b),
      and (C) any breach by the Trustee of its obligations (or of the obligations
      of
      any Servicing Function Participant appointed by the Trustee) under Sections
      3.20
      and 3.29 or the Trustee’s or such Servicing Function Participant’s negligence,
      bad faith or willful misconduct in connection therewith and (ii) Servicer shall
      indemnify and hold harmless the Depositor and the Trustee and any of 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 (other than punitive
      damages) arising out of or based upon any breach of the Servicer’s obligations
      under Section 3.29 or any any material misstatement contained in any Assessment
      of Compliance provided on its behalf pursuant to Section 3.20 or the Sarbanes
      Certification. If the indemnification provided for herein is unavailable or
      insufficient to hold harmless the Depositor, the Servicer, the Trustee and
      their
      officers, directors and Affiliates, then the indemnifying party agrees that
      it
      shall contribute to the amount paid or payable by the indemnified party and
      any
      of their officers, directors or Affiliates as a result of the losses, claims,
      damages or liabilities of the indemnified party, any of their officers,
      directors or Affiliates in such proportion as is appropriate to reflect the
      relative fault of the indemnifying party and each of their officers, directors
      and Affiliates on the one hand and the indemnified party on the other in
      connection with a breach of the indemnifying party’s obligations under this
      Section 3.29(b) or Section 3.20 or the indemnifying party’s negligence, bad
      faith or willful misconduct in connection therewith.

    

    
      
         

      

      
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    (c) Within
      four (4) Business Days after the occurrence of a Reportable Event, and if
      requested by the Depositor, the Trustee shall prepare and file on behalf of
      the
      Trust any 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
      T-1
      to the
      Depositor, the Servicer and the Trustee (unless such item is specific to the
      Trustee, in which case the Trustee will be deemed to have notice) and directed
      and approved by the Depositor pursuant to the following paragraph, and the
      Trustee 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.

    

    As
      set
      forth on Exhibit
      T-1
      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 described on
Exhibit
      T-1
      shall be
      required to provide to the Trustee, the Servicer and to 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 Trustee and such party, the
      form
      and substance of any Form 8-K Disclosure Information, if applicable, together
      with an Additional Disclosure Notification in the form attached hereto as
Exhibit
      U
      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 Trustee has
      no
      duty under this Agreement to monitor or enforce the performance by the parties
      listed on Exhibit
      T-1
      (other
      than with respect to the Trustee or any Servicing Function Participant utilized
      by the Trustee) of their duties under this paragraph or proactively solicit
      or
      procure from such parties any Form 8-K Disclosure information. The Servicer
      will
      be responsible for any reasonable fees and expenses assessed or incurred by
      the
      Trustee in connection with including any Form 8-K Disclosure Information on
      Form
      8-K pursuant to this paragraph unless the party required to provide the Form
      8-K
      Disclosure Information is the Depositor as specified in Exhibit T-1, in which
      case the Depositor shall be responsible for such fees and expenses.

    

    
      
         

      

      
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    After
      preparing the Form 8-K, the Trustee shall 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 Trustee in writing (which may be furnished electronically) of any changes
      to
      or approval of such Form 8-K and the Depositor shall return a signed copy of
      the
      Form 8-K to the Trustee. If a Form 8-K cannot be filed on time or if a
      previously filed Form 8-K needs to be amended, the Trustee will follow the
      procedures set forth in Section 3.29(e). Promptly (but no later than one
      Business Day) after filing with the Commission, the Trustee will make available
      on its internet website a final executed copy of each Form 8-K filed by it.
      The
      parties to this Agreement acknowledge that the performance by the Trustee of
      its
      duties under this Section 3.29(c) related to the timely preparation, arrangement
      for execution and filing of Form 8-K is contingent upon such parties strictly
      observing all applicable deadlines in the performance of their duties under
      this
      Section 3.29(c). The Trustee shall not have any liability for any loss, expense,
      damage, claim arising out of or with respect to any failure to properly prepare,
      arrange for execution and/or timely file such Form 8-K, where such failure
      results from the Trustee’s inability or failure to obtain or receive, on a
      timely basis, any information from any other party hereto (unless such item
      is
      specific to the Trustee or any Servicing Function Participant utilized by the
      Trustee, in which case the Trustee will be deemed to have notice) or any
      Servicing Function Participant needed to prepare, arrange for execution or
      file
      such Form 8-K, not resulting from its own negligence, bad faith or willful
      misconduct.

    

    (d) Upon
      any
      filing with the Commission, the Trustee shall promptly deliver to the Depositor
      and Servicer a copy of any executed report, statement or
      information.

    

    (e) The
      obligations set forth in paragraphs (a) through (d) of this Section shall only
      apply with respect to periods for which reports are required to be filed with
      respect to the Trust under the Exchange Act. Prior to January 30 of the first
      year in which the Trustee is able to do so under applicable law, the Trustee
      shall file a Form 15 Suspension Notification with respect to the Trust. At
      any
      time after the filing of a Form 15 Suspension Notification, if the number of
      Certificateholders of record exceeds the number set forth in Section 15(d)
      of
      the Exchange Act or the regulations promulgated pursuant thereto which would
      cause the Trust to again become subject to the reporting requirements of the
      Exchange Act, the Trustee shall recommence preparing and filing reports on
      Form
      10-K and Form 10-D as required pursuant to this Section 3.29 and the parties
      hereto shall have the obligations set forth in this Section.

    

    In
      the
      event that the Trustee 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 Trustee will promptly notify the Depositor and the
      Servicer. In the case of Form 10-D and 10-K, the parties to this Agreement
      will
      cooperate to prepare and file a Form 12b-25 and a 10-D/A and 10-K/A as
      applicable, pursuant to Rule 12b-25 of the Exchange Act. In the case of Form
      8-K, the Trustee will, upon receipt of all required Form 8-K Disclosure
      Information and upon the approval and direction of the Depositor, either include
      such Form 8-K Information in a Form 8-K and file such Form 8-K or include such
      disclosure information on the next Form 10-D. In the event that any previously
      filed Form 8-K, 10-D or 10-K needs to be amended in connection with any
      Additional Form 10-D Disclosure (other than, in the case of Form 10-D, for
      the
      purpose of restating any Monthly Statement), Additional Form 10-K Disclosure
      or
      Form 8-K Disclosure Information, the Trustee will notify the Depositor and
      the
      Servicer and such other parties to the transaction as are affected by such
      amendment, and such parties will cooperate to prepare any necessary 8-K/A,
      10-D/A or 10-K/A. Any Form 15, Form 12b-25 or amendment to Form 10-D or 8-K
      shall be signed by the Depositor and any amendment to 10-K shall be signed
      by a
      senior officer in charge of the servicing function of the Servicer, as
      applicable, . The parties to this Agreement acknowledge that the performance
      by
      the Trustee of its duties under this Section 3.29(e) related to the timely
      preparation, arrangement for execution and filing of Form 15, a Form 12b-25
      or
      any amendment to Form 8-K, 10-D or 10-K is contingent upon each such party
      performing its duties under this Section. The Trustee shall not have any
      liability for any loss, expense, damage, claim arising out of or with respect
      to
      any failure to properly prepare, arrange for execution 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 Trustee’s inability or failure to obtain or
      receive, on a timely basis, any information from any other party hereto (other
      than the Trustee or any Servicing Function Participant utilized by the Trustee)
      or any Servicing Function Participant needed to prepare, arrange for execution
      or file such Form 15, Form 12b-25 or any amendments to Forms 8-K, 10-D or 10-K,
      not resulting from its own negligence, bad faith or willful
      misconduct.

    

    
      
         

      

      
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    (f) For
      so
      long as reports are required to be filed with the Commission under the Exchange
      Act with respect to the Trust, each of the Depositor, the Trustee and the
      Servicer shall notify the Depositor, the Servicer and the Trustee in writing
      of
      any litigation (material to Certificateholders) or proceeding pending against
      such notifying person (or in the case of the Servicer, against the Servicer
      or
      any Subservicer engaged by it), or any affiliations or relationships that
      develop following the Closing Date between such notifying person, or in the
      case
      of the Servicer, between the Servicer or any Subservicer engaged by it) and
      any
      other party hereto or any originator, that may have to be reported on a Form
      8-K, Form 10-K or Form 10-D with respect to the Trust.

    

    (g) To
      the
      extent that, following the Closing Date, the Depositor certifies that reports
      and certifications differing from those required under this Section 3.29 comply
      with the reporting requirements under the Exchange Act, the Trustee and the
      Servicer hereby agree that they will reasonably cooperate to amend the
      provisions of this Section 3.29 in order to comply with such amended reporting
      requirements and such amendment of this Section 3.29. Any such amendment may
      result in the reduction of the reports filed by the Depositor under the Exchange
      Act. Notwithstanding the foregoing, no party hereto shall be obligated to enter
      into any amendment pursuant to this Section 3.29 that adversely affects its
      obligations and immunities under this Agreement.

    

    Section
      3.30. Subservicing
      Agreements between the Servicer and Subservicers.

    

    (a) The
      Servicer may enter into subservicing agreements with Subservicers, for the
      servicing and administration of the Mortgage Loans (“Subservicing
      Agreements”).
      The
      Servicer represents and warrants to the other parties hereto that, except as
      otherwise set forth herein, no Subservicing Agreement is in effect as of the
      Closing Date with respect to any Mortgage Loans required to be serviced by
      it
      hereunder. The Servicer shall give notice to the Depositor and the Trustee
      of
      any such Subservicer and Subservicing Agreement, which notice shall contain
      all
      information (including without limitation a copy of the Subservicing Agreement)
      reasonably necessary to enable the Trustee, pursuant to Section 3.29(g), to
      accurately and timely report the event under Item 6.02 of Form 8-K pursuant
      to
      the Exchange Act (if such reports under the Exchange Act are required to be
      filed under the Exchange Act). During the period when reports are required
      to be
      filed for the Trust under the Exchange Act, no Subservicing Agreement shall
      be
      effective until 30 days after such written notice is received by both the
      Depositor and the Trustee and thereafter shall be effective at the time the
      Servicer and any Subservicer enter into any such Subservicing Agreement. The
      Trustee shall not be required to review or consent to such Subservicing
      Agreements and shall have no liability in connection therewith.

    

    
      
         

      

      
        105

        
          

        

      

      
         

      

    

    (b) Each
      Subservicer shall be (i) authorized to transact business in the state or states
      in which the related Mortgaged Properties it is to service are situated, if
      and
      to the extent required by applicable law to enable the Subservicer to perform
      its obligations hereunder and under the Subservicing Agreement and (ii) a
      Freddie Mac or Fannie Mae approved mortgage servicer. Each Subservicing
      Agreement must impose on the Subservicer requirements conforming to the
      provisions set forth in Section 3.34 and provide for servicing of the Mortgage
      Loans consistent with the terms of this Agreement. The Servicer will examine
      each Subservicing Agreement and will be familiar with the terms thereof. The
      terms of any Subservicing Agreement will not be inconsistent with any of the
      provisions of this Agreement. The Servicer and the Subservicers may enter into
      and make amendments to the Subservicing Agreements or enter into different
      forms
      of Subservicing Agreements; provided, however, that any such amendments or
      different forms shall be consistent with and not violate the provisions of
      this
      Agreement, and that no such amendment or different form shall be made or entered
      into which could be reasonably expected to be materially adverse to the
      interests of the Trustee, without the consent of the Trustee. Any variation
      without the consent of the Trustee from the provisions set forth in Section
      3.34
      relating to insurance or priority requirements of Subservicing Accounts, or
      credits and charges to the Subservicing Accounts or the timing and amount of
      remittances by the Subservicers to the Servicer, are conclusively deemed to
      be
      inconsistent with this Agreement and therefore prohibited. The Servicer shall
      deliver to the Trustee and the Depositor copies of all Subservicing Agreements,
      and any amendments or modifications thereof, within a reasonable time period
      after the Servicer’s execution and delivery of such instruments.

    

    (c) As
      part
      of its servicing activities hereunder, the Servicer (except as otherwise
      provided in the last sentence of this paragraph), for the benefit of the
      Trustee, shall enforce the obligations of each Subservicer under the related
      Subservicing Agreement, including, without limitation, any obligation to make
      advances in respect of delinquent payments as required by a Subservicing
      Agreement. Such enforcement, including, without limitation, the legal
      prosecution of claims, termination of Subservicing Agreements, and the pursuit
      of other appropriate remedies, shall be in such form and carried out to such
      an
      extent and at such time as the Servicer, in its good faith business judgment,
      would require were it the owner of the related Mortgage Loans. The Servicer
      shall pay the costs of such enforcement at its own expense, and shall be
      reimbursed therefor only (i) from a general recovery resulting from such
      enforcement, to the extent, if any, that such recovery exceeds all amounts
      due
      in respect of the related Mortgage Loans or (ii) from a specific recovery of
      costs, expenses or attorneys’ fees against the party against whom such
      enforcement is directed.

    

    (d) The
      Servicer shall cause any Subservicer engaged by the Servicer (or by any
      Subservicer) for the benefit of the Depositor to comply with the provisions
      of
      this Section 3.30 and with Sections 3.19, 3.20, 6.02 and 6.04 of this Agreement
      to the same extent as if such Subservicer were the Servicer, and to provide
      the
      information required with respect to such Subservicer under Section 3.29(f)
      of
      this Agreement. The Servicer shall be responsible for obtaining from each such
      Subservicer and delivering to applicable Persons any servicer compliance
      statement required to be delivered by such Subservicer under Section 3.19 and
      any assessment of compliance report and related accountant’s attestation
      required to be delivered by such Subservicer under Section 3.20, in each case
      as
      and when required to be delivered.

    

    
      
         

      

      
        106

        
          

        

      

      
         

      

    

    (e) Subject
      to the conditions set forth in this Section 3.30(e), the Servicer and any
      Subservicer engaged by the Servicer is permitted to utilize one or more
      Subcontractors to perform certain of its obligations hereunder. As a condition
      to the utilization by the Servicer or any such Subservicer of any Subcontractor
      determined to be “participating in the servicing function” within the meaning of
      Item 1122 of Regulation AB, the Servicer shall cause any such Subcontractor
      used
      by the Servicer (or by any such Subservicer) for the benefit of the Depositor
      to
      comply with the provisions of Section 3.20 of this Agreement to the same extent
      as if such Subcontractor were the Servicer. The Servicer shall be responsible
      for obtaining from each such Subcontractor and delivering to the applicable
      Persons any assessment of compliance report and related accountant’s attestation
      required to be delivered by such Subcontractor under Section 3.20, in each
      case
      as and when required to be delivered.

    

    Notwithstanding
      the foregoing, if the Servicer engages a Subcontractor in connection with the
      performance of any of its duties under this Agreement, the Servicer shall be
      responsible for determining whether such Subcontractor is a “servicer” within
      the meaning of Item 1101 of Regulation AB and whether any such affiliate or
      third-party vendor meets the criteria in Item 1108(a)(2)(i) through (iii) of
      Regulation AB. If the Servicer determines, pursuant to the preceding sentence,
      that such Subcontractor is a “servicer” within the meaning of Item 1101 of
      Regulation AB and meets any of the criteria in Item 1108(a)(2)(i) through (iii)
      of Regulation AB, then such Subcontractor shall be deemed to be a Subservicer
      for purposes of this Agreement (and shall not be required to meet the
      requirements of a Subservicer set forth in Section 3.30(b)), the engagement
      of
      such Subservicer shall not be effective unless and until notice is given
      pursuant to Section 3.30(a) and the Servicer shall comply with Section 3.30(d)
      with respect thereto.

    

    (f) Notwithstanding
      any Subservicing Agreement, any of the provisions of this Agreement relating
      to
      agreements or arrangements between the Servicer and a Subservicer or reference
      to actions taken through a Subservicer or otherwise, the Servicer shall remain
      obligated and primarily liable to the Trustee for the servicing and
      administering of the Mortgage Loans in accordance with the provisions of Section
      3.01 without diminution of such obligation or liability by virtue of such
      Subservicing Agreements or arrangements or by virtue of indemnification from
      the
      Subservicer and to the same extent and under the same terms and conditions
      as if
      the Servicer alone were servicing and administering the Mortgage Loans. The
      Servicer shall be entitled to enter into any agreement with a Subservicer for
      indemnification of the Servicer by such Subservicer and nothing contained in
      this Agreement shall be deemed to limit or modify such
      indemnification.

    

    (g) Notwithstanding
      anything to the contrary contained in this Agreement, the Servicer shall
      indemnify the Depositor, the Trustee and any director, officer, employee or
      agent of the Depositor or the Trustee and hold them harmless against any and
      all
      claims, economic losses, damages, penalties, fines, forfeitures, reasonable
      and
      necessary legal fees and related costs, judgments, and any other related costs,
      fees and expenses that any of them actually sustain, in each case that are
      likely foreseeable and directly related to any failure by the Servicer or any
      Subservicer engaged by such Servicer or any Subcontractor utilized by such
      Servicer to deliver any information, report, certification or accountants’
letter when and as required under Sections 3.19, 3.20, 3.29 or 6.02, including,
      without limitation, any failure by the Servicer to determine correctly that
      any
      Subcontractor is “participating in the servicing function” within the meaning of
      Item 1122 of Regulation AB; provided, however, the Servicer shall not be liable
      for any punitive damages.

    

    
      
         

      

      
        107

        
          

        

      

      
         

      

    

    Section
      3.31. Successor
      Subservicers.

    

    The
      Servicer shall be entitled to terminate any Subservicing Agreement and the
      rights and obligations of any Subservicer pursuant to any Subservicing Agreement
      in accordance with the terms and conditions of such Subservicing Agreement;
      provided, however, that during the period when reports are required to be filed
      for the Trust under the Exchange Act, the termination, resignation or removal
      of
      a Subservicer shall be not be effective until 30 days after written notice
      is
      received by both the Depositor and the Trustee that contains all information
      reasonably necessary to enable the Trustee, pursuant to Section 3.29(g), to
      accurately and timely report the event under Item 6.02 of Form 8-K pursuant
      to
      the Exchange Act (if such reports under the Exchange Act are required to be
      filed under the Exchange Act). In the event of termination of any Subservicer,
      all servicing obligations of such Subservicer shall be assumed simultaneously
      by
      the Servicer without any act or deed on the part of such Subservicer or the
      Servicer, and the Servicer either shall service directly the related Mortgage
      Loans or shall enter into a Subservicing Agreement with a successor Subservicer
      which qualifies under Section 3.30.

    

    Any
      Subservicing Agreement shall include the provision that such agreement may
      be
      immediately terminated by the Depositor or the Trustee without fee, in
      accordance with the terms of this Agreement, in the event that the Servicer
      shall, for any reason, no longer be the Servicer (including termination due
      to a
      Servicer Event of Termination).

    

    Section
      3.32. No
      Contractual Relationship between Subservicers and the Trustee.

    

    Any
      Subservicing Agreement that may be entered into and any transactions or services
      relating to the Mortgage Loans involving a Subservicer in its capacity as such
      shall be deemed to be between the Subservicer and the Servicer alone, and the
      Trustee (or any successor Servicer) shall not be deemed a party thereto and
      shall have no claims, rights, obligations, duties or liabilities with respect
      to
      the Subservicer except as set forth in Section 3.33. The Servicer shall be
      solely liable for all fees owed by it to any Subservicer, irrespective of
      whether the Servicer’s compensation pursuant to this Agreement is sufficient to
      pay such fees.

    

    Section
      3.33. Assumption
      or Termination of Subservicing Agreements by Trustee.

    

    In
      the
      event the Servicer at any time shall for any reason no longer be the Servicer
      (including by reason of the occurrence of a Servicer Event of Termination),
      the
      Trustee, or its designee or the successor Servicer if the successor is not
      the
      Trustee, shall thereupon assume all of the rights and obligations of the
      Servicer under each Subservicing Agreement that the Servicer may have entered
      into, with copies thereof provided to the Trustee or the successor Servicer
      if
      the successor is not the Trustee, prior to the Trustee or the successor Servicer
      if the successor is not the Trustee, assuming such rights and obligations,
      unless the Trustee elects to terminate any Subservicing Agreement in accordance
      with its terms as provided in Section 3.31.

    

    
      
         

      

      
        108

        
          

        

      

      
         

      

    

    Upon
      such
      assumption, the Trustee, its designee or the successor servicer shall be deemed,
      subject to Section 3.31, to have assumed all of the Servicer’s interest therein
      and to have replaced the Servicer as a party to each Subservicing Agreement
      to
      the same extent as if each Subservicing Agreement had been assigned to the
      assuming party, except that (i) the Servicer shall not thereby be relieved
      of
      any liability or obligations under any Subservicing Agreement that arose before
      it ceased to be the Servicer and (ii) none of the Depositor, the Trustee, their
      designees or any successor Servicer shall be deemed to have assumed any
      liability or obligation of the Servicer that arose before it ceased to be the
      Servicer.

    

    The
      Servicer at its expense shall, upon request of the Trustee, its designee or
      the
      successor Servicer deliver to the assuming party all documents and records
      relating to each Subservicing Agreement and the Mortgage Loans then being
      serviced and an accounting of amounts collected and held by or on behalf of
      it,
      and otherwise use its best efforts to effect the orderly and efficient transfer
      of the Subservicing Agreements to the assuming party.

    

    Section
      3.34. Subservicing
      Accounts.

    

    In
      those
      cases where a Subservicer is servicing a Mortgage Loan pursuant to a
      Subservicing Agreement, the Subservicer will be required to establish and
      maintain one or more segregated accounts (collectively, the “Subservicing
      Account”). The Subservicing Account shall be an Eligible Account and shall
      otherwise be acceptable to the Servicer. The Subservicer shall deposit in the
      clearing account (which account must be an Eligible 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 Subservicer’s receipt thereof, all proceeds
      of Mortgage Loans received by the Subservicer less its servicing compensation
      to
      the extent permitted by the Subservicing Agreement, and shall thereafter deposit
      such amounts in the Subservicing Account, in no event more than two Business
      Days after the deposit of such funds into the clearing account. The Subservicer
      shall thereafter deposit such proceeds in the Collection Account or remit such
      proceeds to the Servicer for deposit in the Collection Account not later than
      two Business Days after the deposit of such amounts in the Subservicing Account.
      For purposes of this Agreement, the Servicer shall be deemed to have received
      payments on the Mortgage Loans when the Subservicer receives such
      payments.

    

    ARTICLE
      IV

    

    FLOW
      OF FUNDS

    

    Section
      4.01. Interest
      Distributions.

    

    On
      each
      Distribution Date, for so long as Litton is the Servicer of the Mortgage Loans,
      the Trustee shall distribute to the Holders of the Class CE-2 Certificates,
      with
      respect to each Mortgage Loan and for each such calendar month, the Excess
      Servicing Fee. Following such distribution, the Trustee shall withdraw from
      the
      Distribution Account the Trustee Fee and pay it to itself and then withdraw
      the
      Interest Remittance Amount and apply it in the following order of priority
      (based upon the Mortgage Loan information provided to it in the Remittance
      Report, upon which the Trustee may conclusively rely), and the calculations
      required to be made by the Trustee, to the extent available:

    

    
      
         

      

      
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    (i) concurrently,
      to the Class A-1, Class A-2 and Class A-3 Certificates, pro
      rata,
      the
      applicable Accrued Certificate Interest thereon for such Distribution
      Date;

    

    (ii) concurrently,
      to the Class A-1, Class A-2 and Class A-3 Certificates, pro
      rata,
      the
      applicable Interest Carry Forward Amount thereon for such Distribution
      Date;

    

    (iii) to
      the
      Class M-1 Certificates, the Accrued Certificate Interest thereon for such
      Distribution Date;

    

    (iv) to
      the
      Class M-2 Certificates, the Accrued Certificate Interest thereon for such
      Distribution Date;

    

    (v) to
      the
      Class M-3 Certificates, the Accrued Certificate Interest thereon for such
      Distribution Date;

    

    (vi) to
      the
      Class M-4 Certificates, the Accrued Certificate Interest thereon for such
      Distribution Date;

    

    (vii) to
      the
      Class M-5 Certificates, the Accrued Certificate Interest thereon for such
      Distribution Date;

    

    (viii) to
      the
      Class M-6 Certificates, the Accrued Certificate Interest thereon for such
      Distribution Date;

    

    (ix) to
      the
      Class M-7 Certificates, the Accrued Certificate Interest thereon for such
      Distribution Date;

    

    (x) to
      the
      Class M-8 Certificates, the Accrued Certificate Interest thereon for such
      Distribution Date;

    

    (xi) to
      the
      Class M-9 Certificates, the Accrued Certificate Interest thereon for such
      Distribution Date;

    

    (xii) to
      the
      Class B-1 Certificates, the Accrued Certificate Interest thereon for such
      Distribution Date; and

    

    (xiii) the
      amount, if any, of the Interest Remittance Amount remaining after application
      with respect to the priorities set forth above will be applied as described
      under Section 4.02(b) hereof.

    

    
      
         

      

      
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    Section
      4.02. Distributions
      of Principal and Monthly Excess Cashflow Amounts.

    

    (a) On
      each
      Distribution Date, the Trustee shall withdraw from the Distribution Account
      the
      Principal Distribution Amount and apply it in the following order of priority
      (based upon the Mortgage Loan information provided to it in the Remittance
      Report, upon which the Trustee may conclusively rely), and the calculations
      required to be made by the Trustee, to the extent available:

    

    (i) before
      the Stepdown Date or on which a Trigger Event is in effect, sequentially, as
      follows:

    

    (A) sequentially,
      to the Class A-1, Class A-2 and Class A-3 Certificates, in that order, the
      Senior Principal Distribution Amount until the Certificate Principal Balances
      thereof have been reduced to zero;

    

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

    

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

    

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

    

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

    

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

    

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

    

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

    

    (I) to
      the
      Class M-8 Certificates, until the Certificate Principal Balance thereof has
      been reduced to zero;

    

    (J) to
      the
      Class M-9 Certificates, until the Certificate Principal Balance thereof has
      been reduced to zero;

    

    (K) to
      the
      Class B-1 Certificates, until the Certificate Principal Balance thereof has
      been reduced to zero; and

    

    (L) any
      remaining amount of the Principal Distribution Amount shall be applied as part
      of the Monthly Excess Cashflow Amount as set forth in Section
      4.02(b).

    

    
      
         

      

      
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    (ii) on
      or
      after the Stepdown Date and as long as a Trigger Event is not in
      effect:

    

    (A) sequentially,
      to the Class A-1, Class A-2 and Class A-3 Certificates, in that order, the
      Senior Principal Distribution Amount until the Certificate Principal Balances
      thereof have been reduced to zero;

    

    (B) to
      the
      Class M-1 Certificates, up to the Class M-1 Principal Distribution Amount,
      until
      the Certificate Principal Balance thereof has been reduced to zero;

    

    (C) to
      the
      Class M-2 Certificates, up to the Class M-2 Principal Distribution Amount,
      until
      the Certificate Principal Balance thereof has been reduced to zero;

    

    (D) to
      the
      Class M-3 Certificates, up to the Class M-3 Principal Distribution Amount,
      until
      the Certificate Principal Balance thereof has been reduced to zero;

    

    (E) to
      the
      Class M-4 Certificates, up to the Class M-4 Principal Distribution Amount,
      until
      the Certificate Principal Balance thereof has been reduced to zero;

    

    (F) to
      the
      Class M-5 Certificates, up to the Class M-5 Principal Distribution Amount,
      until
      the Certificate Principal Balance thereof has been reduced to zero;

    

    (G) to
      the
      Class M-6 Certificates, up to the Class M-6 Principal Distribution Amount,
      until
      the Certificate Principal Balance thereof has been reduced to zero;

    

    (H) to
      the
      Class M-7 Certificates, up to the Class M-7 Principal Distribution Amount,
      until
      the Certificate Principal Balance thereof has been reduced to zero;

    

    (I) to
      the
      Class M-8 Certificates, up to the Class M-8 Principal Distribution Amount,
      until
      the Certificate Principal Balance thereof has been reduced to zero;

    

    (J) to
      the
      Class M-9 Certificates, up to the Class M-9 Principal Distribution Amount,
      until
      the Certificate Principal Balance thereof has been reduced to zero;

    

    (K) to
      the
      Class B-1 Certificates, up to the Class B-1 Principal Distribution Amount,
      until
      the Certificate Principal Balance thereof has been reduced to zero;
      and

    

    
      
         

      

      
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    (L) any
      remaining amount of the Principal Distribution Amount shall be applied as part
      of the Monthly Excess Cashflow Amount as set forth in Section
      4.02(b).

    

    (b) On
      each
      Distribution Date, any Monthly Excess Cashflow Amount shall be distributed,
      to
      the extent available, in the following order of priority on such Distribution
      Date:

    

    (i) to
      the
      Class A Certificates, pro
      rata,
      any
      remaining Accrued Certificate Interest for such Classes for such Distribution
      Date;

    

    (ii) to
      the
      Class A Certificates, pro
      rata,
      any
      Interest Carry Forward Amounts for such Classes for such Distribution
      Date;

    

    (iii) to
      the
      Class M-1 Certificates, any remaining Accrued Certificate Interest for such
      Class for such Distribution Date;

    

    (iv) to
      the
      Class M-1 Certificates, any Interest Carry Forward Amount for such Class for
      such Distribution Date;

    

    (v) to
      the
      Class M-1 Certificates, any Class M-1 Realized Loss Amortization Amount for
      such
      Distribution Date;

    

    (vi) to
      the
      Class M-2 Certificates, any remaining Accrued Certificate Interest for such
      Class for such Distribution Date;

    

    (vii) to
      the
      Class M-2 Certificates, any Interest Carry Forward Amount for such Class for
      such Distribution Date;

    

    (viii) to
      the
      Class M-2 Certificates, any Class M-2 Realized Loss Amortization Amount for
      such
      Distribution Date;

    

    (ix) to
      the
      Class M-3 Certificates, any remaining Accrued Certificate Interest for such
      Class for such Distribution Date;

    

    (x) to
      the
      Class M-3 Certificates, any Interest Carry Forward Amount for such Class for
      such Distribution Date;

    

    (xi) to
      the
      Class M-3 Certificates, any Class M-3 Realized Loss Amortization Amount for
      such
      Distribution Date;

    

    (xii) to
      the
      Class M-4 Certificates, any remaining Accrued Certificate Interest for such
      Class for such Distribution Date;

    

    (xiii) to
      the
      Class M-4 Certificates, any Interest Carry Forward Amount for such Class for
      such Distribution Date;

    

    (xiv) to
      the
      Class M-4 Certificates, any Class M-4 Realized Loss Amortization Amount for
      such
      Distribution Date;

    

    
      
         

      

      
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    (xv) to
      the
      Class M-5 Certificates, any remaining Accrued Certificate Interest for such
      Class for such Distribution Date;

    

    (xvi) to
      the
      Class M-5 Certificates, any Interest Carry Forward Amount for such Class for
      such Distribution Date;

    

    (xvii) to
      the
      Class M-5 Certificates, any Class M-5 Realized Loss Amortization Amount for
      such
      Distribution Date;

    

    (xviii) to
      the
      Class M-6 Certificates, any remaining Accrued Certificate Interest for such
      Class for such Distribution Date;

    

    (xix) to
      the
      Class M-6 Certificates, any Interest Carry Forward Amount for such Class for
      such Distribution Date;

    

    (xx) to
      the
      Class M-6 Certificates, any Class M-6 Realized Loss Amortization Amount for
      such
      Distribution Date;

    

    (xxi) to
      the
      Class M-7 Certificates, any remaining Accrued Certificate Interest for such
      Class for such Distribution Date;

    

    (xxii) to
      the
      Class M-7 Certificates, any Interest Carry Forward Amount for such Class for
      such Distribution Date;

    

    (xxiii) to
      the
      Class M-7 Certificates, any Class M-7 Realized Loss Amortization Amount for
      such
      Distribution Date;

    

    (xxiv) to
      the
      Class M-8 Certificates, any remaining Accrued Certificate Interest for such
      Class for such Distribution Date;

    

    (xxv) to
      the
      Class M-8 Certificates, any Interest Carry Forward Amount for such Class for
      such Distribution Date;

    

    (xxvi) to
      the
      Class M-8 Certificates, any Class M-8 Realized Loss Amortization Amount for
      such
      Distribution Date;

    

    (xxvii) to
      the
      Class M-9 Certificates, any remaining Accrued Certificate Interest for such
      Class for such Distribution Date;

    

    (xxviii) to
      the
      Class M-9 Certificates, any Interest Carry Forward Amount for such Class for
      such Distribution Date;

    

    (xxix) to
      the
      Class M-9 Certificates, any Class M-9 Realized Loss Amortization Amount for
      such
      Distribution Date;

    

    (xxx) to
      the
      Class B-1 Certificates, any remaining Accrued Certificate Interest for such
      Class for such Distribution Date;

    

    
      
         

      

      
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    (xxxi) to
      the
      Class B-1 Certificates, any Interest Carry Forward Amount for such Class for
      such Distribution Date;

    

    (xxxii) to
      the
      Class B-1 Certificates, any Class B-1 Realized Loss Amortization Amount for
      such
      Distribution Date;

    

    (xxxiii) 
      from
      amounts otherwise distributable to the Class CE-1 Certificates, to the Cap
      Carryover Reserve Account, first, to the Class A Certificates, pro
      rata,
      based
      on Cap Carryover Amount, and then 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, Class M-9
      and
      Class B-1 Certificates, any Cap Carryover Amount for such Class;

    

    (xxxiv) 
      from
      amounts otherwise distributable to the Class CE-1 Certificates, to the
      Supplemental Interest Trust, to fund any Defaulted Swap Termination
      Payment;

    

    (xxxv) from
      amounts otherwise distributable to the Class CE-1 Certificates, if a 40-Year
      Trigger Event is in effect, sequentially, to the Class A-1, Class A-2, Class
      A-3, 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 and Class B-1 Certificates, in that order, until
      the
      earlier of (a) the Overcollateralization Amount (after giving effect to all
      principal distributions on such Distribution Date other than principal
      distributions resulting from this Section 4.02(b)(xxxv)) equals the aggregate
      Principal Balance of the Mortgage Loans with 40-year original terms to maturity
      as of the last day of the related Collection Period after giving effect to
      Principal Prepayments in the related Prepayment Period or (b) the Certificate
      Principal Balances of such Certificates have been reduced to zero; 

    

    (xxxvi) to
      the
      Class CE-1 Certificates, up to the Class CE Distributable Amount for
      such Distribution Date; and

    

    (xxxvii) on
      the
      sixtieth Distribution Date (or the final Distribution Date, if earlier), to
      the
      holders of the Class P Certificates $100.00 in reduction of the Certificate
      Principal Balance of such Class.

    

    On
      each
      Distribution Date, there shall be distributed to the Holders of the Class R
      Certificates in respect of the Class R-1 Interest, the Class R-2 Interest and
      the Class R-3 Interest and to the Class R-X Certificates in respect of the
      Class
      R-A Interest, the Class R-B Interest and the Class R-C Interest and Class R-D
      Interest, any remaining amount in the Distribution Account from the related
      REMIC on such date after the application pursuant to Sections 4.01, 4.02(a),
      4.02(b)(i)-(xxxvii) and 4.02(c).

    

    (c) On
      each
      Distribution Date, all Prepayment Penalties (including amounts deposited in
      connection with the full or partial waiver of such Prepayment Penalties pursuant
      to Section 3.01) shall be allocated to the Class P Certificates. Such
      amounts shall not reduce the Certificate Principal Balance of such
      Class.

    

    (d) Any
      amounts distributed to the Certificates in respect of Cap Carryover Amounts
      pursuant to Sections 4.02(b)(xxxiii) (to the extent such payments are not from
      the Cap Agreement or the Swap Agreement) shall first be deemed distributed
      by
      REMIC 3 as a distribution in respect of the REMIC 3 Class CE Interest, to REMIC
      A and distributed thereby as a distribution to the REMIC A Class CE Certificates
      as payments on notional principal contracts in the nature of interest rate
      cap
      contracts.

    

    
      
         

      

      
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    (e) Any
      amounts distributed to the Class B-1 Certificates pursuant to Section 4.01
      or
      this Section 4.02, other than Cap Carryover Amounts, shall be deemed distributed
      by REMIC 3 in respect of the REMIC 3 Class B-1 Interest to REMIC C, and
      distributed thereby as a distribution in respect of the Class B-1
      Certificates.

    

    (f) On
      each
      Distribution Date, Unpaid Realized Loss Amounts on the Class M and Class B-1
      Certificates will be reduced by the amount of any Subsequent Recoveries received
      during the related Prepayment Period in the same order as Realized Loss
      Amortization Amounts are paid to such Certificates pursuant to Section 4.02(b)
      above.

    

    (g) Notwithstanding
      the priority of distributions set forth in Section 4.02(a)(i)(A) and (B) and
      Section 4.02(a)(ii)(A) and (B), on any Distribution Date on and after the
      Distribution Date on which the Overcollateralization Amount is zero and the
      Certificate Principal Balances of the Class M and Class B-1 Certificates have
      been reduced to zero, any principal distributions to the Class A Certificates
      will be made concurrently on a pro
      rata basis,
      based on their Certificate Principal Balances immediately prior to such
      Distribution Date.

    

    Section
      4.03. Allocation
      of Losses.

    

    Realized
      Losses shall be allocated against the Overcollateralization Amount until the
      Overcollateralization Amount has been reduced to zero. If, after giving effect
      to the distribution of the Principal Distribution Amount on any Distribution
      Date and the increase of any Certificate Principal Balances as a result of
      Subsequent Recoveries, the aggregate Certificate Principal Balance of the
      Offered Certificates and the Class B-1 Certificates exceeds the Pool Balance
      as
      of the end of the related Collection Period, after giving effect to Principal
      Prepayments in the related Prepayment Period, any Applied Realized Loss Amount
      for such Distribution Date will be allocated against the Class B-1, Class M-9,
      Class M-8, Class M-7, Class M-6, Class M-5, Class M-4, Class M-3, Class M-2
      and Class M-1 Certificates, in that order, until the respective Certificate
      Principal Balances thereof are reduced to zero.

    

    Special
      Hazard Losses will be allocated as described above, provided that if the
      cumulative amount of such losses, as of any date of determination, exceeds
      the
      greatest of (i) 1.0% of the Pool Balance as of the Cut-off Date, (ii) two times
      the amount of the principal balance of the largest Mortgage Loan as of the date
      of determination and (iii) an amount equal to the aggregate Principal Balances
      of the Mortgage Loans in the largest zip-code concentration in the State of
      California as of the date of determination, such excess will be allocated among
      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, Class M-9 and Class B-1 Certificates, pro
      rata,
      based
      on their respective Certificate Principal Balances. For the avoidance of doubt,
      any losses allocated pursuant to this paragraph shall not be reimbursed pursuant
      to Section 4.02(b) as Realized Loss Amortization Amounts.

    

    
      
         

      

      
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    Section
      4.04. Method
      of Distribution.

    

    The
      Trustee shall make distributions in respect of a Distribution Date to each
      Certificateholder of record on the related Record Date (other than as provided
      in Section 10.01 respecting the final distribution), in the case of
      Certificateholders of the Certificates, by wire transfer in immediately
      available funds to the account of the Person entitled thereto if such Person
      shall have so notified the Trustee in writing at least five Business Days prior
      to the Record Date immediately prior to such Distribution Date and is the
      registered owner of such Certificates the aggregate initial Certificate
      Principal Balance of which is in excess of $5,000,000 (or the aggregate
      Percentage Interest of which is in excess of 66% Percentage Interest in the
      case
      of the Class CE, Class P and Residual Certificates), or 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, provided that the Trustee
      may
      deduct a reasonable wire transfer fee from any payment made by wire transfer.
      Distributions among Certificateholders shall be made in proportion to the
      Percentage Interests evidenced by the Certificates held by such
      Certificateholders.

    

    Section
      4.05. Distributions
      on Book-Entry Certificates.

    

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

    

    Section
      4.06. Statements.

    

    (a) On
      each
      Distribution Date, based on the Mortgage Loan information contained in the
      Remittance Report, the Trustee shall prepare and post on its website at
      http://www.etrustee.net, a statement as to the distributions made on such
      Distribution Date (a “Monthly
      Statement”):

    

    (i) the
      date
      of such Distribution Date and the Determination Date and LIBOR Determination
      Date for such Distribution Date;

    

    (ii) for
      each
      Class, the applicable Record Date and Interest Accrual Period;

    

    (iii) the
      amount of the distribution made on such Distribution Date to the Holders of
      each
      Class of Certificates allocable to principal or reduction of Notional Amount,
      separately identified;

    

    
      
         

      

      
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    (iv) the
      amount of the distribution made on such Distribution Date to the Holders of
      each
      Class of Certificates allocable to interest or Class CE Distributable Amount,
      separately identified;

    

    (v) the
      Overcollateralization Amount, the Overcollateralization Release Amount, the
      Overcollateralization Deficiency and the Targeted Overcollateralization Amount
      as of such Distribution Date and the Monthly Excess Interest Amount and Monthly
      Excess Cashflow Amount for such Distribution Date;

    

    (vi) the
      aggregate amount of servicing compensation received by the Servicer during
      the
      related Collection Period;

    

    (vii) the
      aggregate amount of Advances for the related Collection Period;

    

    (viii) the
      Pool
      Balance at the close of business at the end of the related Collection
      Period;

    

    (ix) the
      number, weighted average remaining term to maturity and weighted average
      Mortgage Interest Rate of the Mortgage Loans as of the related Due
      Date;

    

    (x) the
      number and aggregate unpaid principal balance of Mortgage Loans (a) 30 to
      59 days past due on a contractual basis, (b) 60 to 89 days past due on a
      contractual basis, (c) 90 or more days past due on a contractual basis,
      (d) as to which foreclosure proceedings have been commenced and (e) in
      bankruptcy as of the close of business on the last day of the calendar month
      preceding such Distribution Date;

    

    (xi) with
      respect to any Mortgage Loan that became an REO Property during the preceding
      calendar month, the loan number of such Mortgage Loan, the unpaid principal
      balance and the Principal Balance of such Mortgage Loan as of the date it became
      an REO Property;

    

    (xii) the
      book
      value of any REO Property as of the close of business on the last Business
      Day
      of the calendar month preceding the Distribution Date, and, cumulatively, the
      total number and cumulative principal balance of all REO Properties as of the
      close of business of the last day of the preceding Collection
      Period;

    

    (xiii) the
      aggregate amount of Principal Prepayments made during the related Prepayment
      Period;

    

    (xiv) the
      aggregate amount of Prepayment Penalties collected (including amounts deposited
      in connection with the full or partial waiver of such Prepayment Penalties
      pursuant to Section 3.01) during the related Collection Period and the
      amounts thereof allocable to the Class P Certificates;

    

    (xv) the
      aggregate amount of Realized Losses incurred during the related Collection
      Period and the cumulative amount of Realized Losses;

    

    
      
         

      

      
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    (xvi) the
      Certificate Principal Balance, or Notional Amount, as applicable, of each Class
      of Certificates, after giving effect to the distributions, and allocations
      of
      Realized Losses or Applied Realized Loss Amounts, as applicable, made on such
      Distribution Date, separately identifying any reduction thereof due to
      allocations of Realized Losses or Applied Realized Loss Amounts;

    

    (xvii) the
      Accrued Certificate Interest in respect of each Class of Fixed-Rate and Floating
      Rate Certificates for such Distribution Date, separately identifying the
      portions thereof attributable to Cap Carryover Amounts, and the respective
      portions thereof, if any, remaining unpaid following the distributions made
      in
      respect of such Certificates on such Distribution Date;

    

    (xviii) the
      aggregate amount of any Prepayment Interest Shortfalls for such Distribution
      Date, to the extent not covered by payments by the Servicer pursuant to
      Section 3.23;

    

    (xix) the
      number, weighted average remaining term to maturity and weighted average
      Mortgage Interest Rate of the Mortgage Loans as of the last day of the related
      Collection Period;

    

    (xx) the
      amount of any Cap Payment, Net Swap Payments, Net Swap Receipts, Swap
      Termination Payments or Defaulted Swap Termination Payments, for such
      Distribution Date;

    

    (xxi) the
      amount of the Trustee Fee paid;

    

    (xxii) the
      Cap
      Carryover Amounts distributed on such Distribution Date and the portion thereof
      constituting Cap Carryover Amounts, the amount of all Cap Carryover Amounts
      covered by withdrawals from the Cap Carryover Reserve Account and the Swap
      Account and the amounts remaining after giving effect to distributions thereof
      on such Distribution Date;

    

    (xxiii) any
      Overcollateralization Deficiency after giving effect to the distribution of
      principal on such Distribution Date;

    

    (xxiv) whether
      a
      Trigger Event has occurred and is continuing (including the calculation thereof
      and the aggregate outstanding balance of all 60+ Day Delinquent Mortgage Loans)
      and the cumulative Realized Losses, as a percentage of the original Pool
      Balance;

    

    (xxv) the
      Interest Remittance Amount and the Principal Remittance Amount;

    

    (xxvi) the
      rate
      at which interest accrues for each Class of Certificates for such Distribution
      Date;

    

    (xxvii) [Reserved];

    

    
      
         

      

      
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    (xxviii) the
      aggregate Principal Balance of Mortgage Loans purchased by the Servicer or
      Seller during the related Collection Period and indicating the Section of this
      Agreement requiring or allowing the purchase of each such Mortgage
      Loan;

    

    (xxix) the
      aggregate Principal Balance of the Mortgage Loans repurchased by the Servicer
      (or an affiliate) during the related Collection Period in connection with
      Section 3.16;

    

    (xxx) the
      amount of Subsequent Recoveries received during the related Prepayment
      Period;

    

    (xxxi) whether
      a
      40-Year Trigger Event has occurred and is continuing;

    

    (xxxii) material
      breaches of Mortgage Loan representations and warranties of which the Trustee
      or
      Servicer has knowledge or has received written notice; and

    

    (xxxiii) material
      breaches of any covenants under this Agreement of which the Trustee or Servicer
      has knowledge or has received written notice.

    

    Parties
      that are unable to use http://www.etrustee.net are entitled to have a paper
      copy
      mailed to them via first class mail by calling the Trustee’s transaction manager
      at (312) 904-4373 and indicating such. The Trustee 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
      Trustee shall provide timely and adequate notification to all above parties
      regarding any such changes.

    

    The
      Trustee may fully rely upon and shall have no liability with respect to
      information with respect to the Mortgage Loans provided by the
      Servicer.

    

    In
      the
      case of information furnished pursuant to subclauses (iii) through (v)
      above, the amounts shall be expressed in a separate section of the report as
      a
      dollar amount for each Class for each $1,000 original dollar amount as of the
      Cut-off Date.

    

    (b) Within
      a
      reasonable period of time after the end of each calendar year, the Trustee
      shall
      furnish to each Person who at any time during the calendar year was a
      Certificateholder (other than the Residual Certificateholders), if requested
      in
      writing by such Person, such information as is reasonably necessary to provide
      to such Person a statement containing the information set forth in
      subclauses (iii), (iv), (xvii) and (xxii) above, aggregated for such
      calendar year or applicable portion thereof during which such Person was a
      Certificateholder. Such obligation of the Trustee shall be deemed to have been
      satisfied to the extent that substantially comparable information shall be
      prepared and furnished by the Trustee to Certificateholders pursuant to any
      requirements of the Code as are in force from time to time.

    

    (c) On
      each
      Distribution Date, the Trustee shall make available to the Residual
      Certificateholders a copy of the reports made available to the
      Certificateholders pursuant to Section 4.06(b) in respect of such Distribution
      Date with such other information as the Trustee deems necessary or appropriate.
      Such obligation of the Trustee shall be deemed to have been satisfied to the
      extent that substantially comparable information shall be prepared and furnished
      to Residual Certificateholders by the Trustee pursuant to any requirements
      of
      the Code as from time to time in force.

    

    
      
         

      

      
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    Section
      4.07. Remittance
      Reports; Advances.

    

    (a) On
      the
      second Business Day following each Determination Date but in no event less
      than
      four Business Days prior to the related Distribution Date, the Servicer shall
      deliver to the Trustee electronically (or by such other means as the Servicer
      and the Trustee may agree from time to time) a Remittance Report with respect
      to
      the related Distribution Date and, in addition to the information provided
      on
      the Remittance Report, such other information reasonably available to it with
      respect to the Mortgage Loans as the Trustee may reasonably request or order
      in
      order for the Trustee to perform the calculations necessary to make the
      distributions contemplated by Section 4.01, 4.02 and 4.03 and to prepare
      the statements to Certificateholders contemplated by Section 4.06. The
      Trustee shall not be responsible to recompute, recalculate or verify any
      information provided to it by the Servicer.

    

    (b) The
      amount of Advances to be made by the Servicer for any Distribution Date shall
      equal, subject to Section 4.07(d), the sum of (i) the aggregate amount of
      Monthly Payments (net of the related Servicing Fee and the Excess Servicing
      Fee), due during the related Collection Period, which Monthly Payments were
      delinquent on a contractual basis as of the close of business on the related
      Determination Date and (ii) with respect to each REO Property, which REO
      Property was acquired during or prior to the related Prepayment Period and
      as to
      which such REO Property an REO Disposition did not occur during the related
      Prepayment Period, an amount equal to the excess, if any, of the interest
      portion of Monthly Payments (net of the related Servicing Fee and Excess
      Servicing Fee) that would have been due on the related Due Date in respect
      of
      the related Mortgage Loans, over the net income from such REO Property deposited
      in the Collection Account pursuant to Section 3.13 for distribution on such
      Distribution Date. 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 the such Balloon Mortgage
      Loan. The Servicer shall not make any Advances with respect to the principal
      portion of the Monthly Payments that would have been due on the related Due
      Date
      with respect to REO Properties and is required to advance only interest payments
      with respect to Second Lien Mortgage Loans. Notwithstanding anything to the
      contrary herein, the Sevicer will not make any Advances with respect to
      shortfalls in interest due to bankruptcy proceedings or Relief Act Interest
      Shortfalls.

    

    On
      or
      before 3:00 PM New York time on the Servicer Remittance Date, the Servicer
      shall
      remit in immediately available funds to the Trustee for deposit in the
      Distribution Account an amount equal to the aggregate amount of Advances, if
      any, to be made in respect of the Mortgage Loans and REO Properties for the
      related Distribution Date either (i) from its own funds or (ii) from
      the Collection Account, to the extent of funds held therein for future
      distribution (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 4.07, used by the Servicer in discharge
      of any such Advance) or (iii) in the form of any combination of
      (i) and (ii) aggregating the total amount of Advances to be made by
      the Servicer with respect to the Mortgage Loans and REO Properties. In addition,
      the Servicer shall have the right to reimburse itself for any Advances or
      Servicing Advances previously made from amounts held from time to time in the
      Collection Account for future distribution pursuant to Section 3.05(ii). Any
      amounts held for future distribution and so used shall be appropriately
      reflected in the Servicer’s records and replaced by the Servicer by deposit in
      the Collection Account on or before any future Servicer Remittance Date to
      the
      extent that the Interest Remittance Amount and Principal Remittance Amount
      for
      the related Distribution Date (determined without regard to Advances to be
      made
      on the Servicer Remittance Date) shall be less than the total amount that would
      be distributed to the Classes of Certificateholders pursuant to
      Section 4.01 and 4.02 on such Distribution Date if such amounts held for
      future distributions had not been so used to make Advances. The Trustee will
      provide notice to the Servicer by telecopy by the close of business on any
      Servicer Remittance Date in the event that the amount remitted by the Servicer
      to the Trustee on such date is less than the Advances required to be made by
      the
      Servicer for the related Distribution Date, as set forth in the related
      Remittance Report.

    

    
      
         

      

      
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    (c) The
      obligation of the Servicer to make such Advances is mandatory, notwithstanding
      any other provision of this Agreement but subject to (d) below, and, with
      respect to any Mortgage Loan or REO Property, shall continue until the earlier
      of such time as the Trust acquires title to the related Mortgaged Property
      or
      such Mortgage Loan is paid in full by the Mortgagor or disposed of by the Trust,
      or until the recovery of all Liquidation Proceeds thereon.

    

    (d) Notwithstanding
      anything herein to the contrary, no Advance or Servicing Advance shall be
      required to be made hereunder by the Servicer if such Advance would, if made,
      constitute a Nonrecoverable Advance. The determination by the Servicer that
      it
      has made a Nonrecoverable Advance or that any proposed Advance, if made, would
      constitute a Nonrecoverable Advance, shall be evidenced by an Officer’s
      Certificate of the Servicer delivered to the Depositor and the
      Trustee.

    

    Section
      4.08. REMIC
      Distributions.

    

    (a) On
      each
      Distribution Date, the Trustee shall be deemed to cause in the following order
      of priority, the following amounts to be distributed to REMIC 2 on account
      of
      the REMIC 1 Regular Interests or withdrawn from the Distribution Account and
      distributed to the Holders of the Class R Certificates (in respect of the Class
      R-1 Interest ), as the case may be:

    

    (i) to
      Holders of REMIC 1 Regular Interest I-CE-2, in an amount equal to (A)
      Uncertificated Accrued Interest for such REMIC 1 Regular Interest for such
      Distribution Date, plus (B) any amounts payable in respect thereof remaining
      unpaid from previous Distribution Dates; and then to Holders of REMIC 1 Regular
      Interest I and each of REMIC 1 Regular Interest I-1-A through I-47-B, pro rata,
      in an amount equal to (A) Uncertificated Accrued Interest for such REMIC 1
      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, payments of principal shall be allocated as follows: first, to REMIC
      1
      Regular Interest I, then to REMIC 1 Regular Interests I-1-A through I-47-B
      starting with the lowest numerical denomination until the Uncertificated
      Principal Balance of each such REMIC 1 Regular Interest is reduced to zero,
      provided that, for REMIC 1 Regular Interests with the same numerical
      denomination, such payments of principal shall be allocated pro rata between
      such REMIC 1 Regular Interests, and second, to the extent of any
      Overcollateralization Release Amounts to REMIC 1 Regular Interest I until the
      Uncertificated Principal Balance of such REMIC 1 Regular Interest is reduced
      to
      zero, then to REMIC 1 Regular Interests I-1-A through I-47-B starting with
      the
      lowest numerical denomination until the Uncertificated Principal Balance of
      each
      such REMIC 1 Regular Interest is reduced to zero; and

    

    
      
         

      

      
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    (iii) to
      the
      Holders of REMIC 1 Regular Interest I-47-B, all amounts representing Prepayment
      Penalties in respect of the Mortgage Loans received during the related
      Prepayment Period.

    

    (b) On
      each
      Distribution Date, the Trustee shall cause in the following order of priority,
      the following amounts to be distributed by REMIC 2 to REMIC 3 on account of
      the
      REMIC 2 Regular Interests or withdrawn from the Distribution Account and
      distributed to the Holders of the Class R Certificates (in respect of the Class
      R-2 Interest), as the case may be:

    

    (i) first,
      to
      the Holders of REMIC 2 Regular Interest LT2CE2, 100% of the amounts received
      in
      respect of REMIC 1 Regular Interest I-CE-2; second, to the Holders of REMIC
      2
      Regular Interest LT2IO, in an amount equal to (A) Uncertificated Accrued
      Interest for such REMIC 2 Regular Interest for such Distribution Date, plus
      (B)
      any amounts in respect thereof remaining unpaid from previous Distribution
      Dates
      and third, to Holders of REMIC 2 Regular Interest LT2AA, REMIC 2 Regular
      Interest LT2A1, REMIC 2 Regular Interest LT2A2, REMIC 2 Regular Interest LT2A3,
      REMIC 2 Regular Interest LT2M1, REMIC 2 Regular Interest LT2M2, REMIC 2 Regular
      Interest LT2M3, REMIC 2 Regular Interest LT2M4, REMIC 2 Regular Interest LT2M5,
      REMIC 2 Regular Interest LT2M6, REMIC 2 Regular Interest LT2M7, REMIC 2 Regular
      Interest LT2M8, REMIC 2 Regular Interest LT2M9, REMIC 2 Regular Interest LT2B1,
      REMIC 2 Regular Interest LT2P and REMIC 2 Regular Interest LT2ZZ, pro rata,
      in
      an amount equal to (A) the Uncertificated Accrued Interest for such Distribution
      Date, plus (B) any amounts in respect thereof remaining unpaid from previous
      Distribution Dates. Amounts payable as Uncertificated Accrued Interest in
      respect of REMIC 2 Regular Interest LT2ZZ shall be reduced and deferred when
      the
      REMIC 2 Overcollateralized Amount is less than the REMIC 2 Overcollateralization
      Target Amount, by the lesser of (x) the amount of such difference and (y) the
      Maximum LT2ZZ Uncertificated Accrued Interest Deferral Amount and such amount
      will be payable to the Holders of REMIC 2 Regular Interest LT2A1, REMIC 2
      Regular Interest LT2A2, REMIC 2 Regular Interest LT2A3, REMIC 2 Regular Interest
      LT2M1, REMIC 2 Regular Interest LT2M2, REMIC 2 Regular Interest LT2M3, REMIC
      2
      Regular Interest LT2M4, REMIC 2 Regular Interest LT2M5, REMIC 2 Regular Interest
      LT2M6, REMIC 2 Regular Interest LT2M7, REMIC 2 Regular Interest LT2M8, REMIC
      2
      Regular Interest LT2M9 and REMIC 2 Regular Interest LT2B1, in the same
      proportion as the Overcollateralization Deficiency is allocated to the
      Corresponding Certificates and the Uncertificated Principal Balance of REMIC
      2
      Regular Interest LT2ZZ shall be increased by such amount;

    

    
      
         

      

      
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    (ii) to
      the
      Holders of REMIC 2 Regular Interests, in an amount equal to the remainder of
      the
      Available Funds for such Distribution Date after the distributions made pursuant
      to clause (i) above, allocated as follows:

    

    (A) to
      REMIC
      2 Regular Interest LT2AA, 98.00% of such remainder, until the Uncertificated
      Principal Balance of such Uncertificated REMIC 2 Regular Interest is reduced
      to
      zero provided, however, that REMIC 2 Regular Interest LT2P shall not be reduced
      until the Distribution Date immediately following the expiration of the latest
      Prepayment Penalty or any Distribution Date thereafter, at which point such
      amount shall be distributed to REMIC 2 Regular Interest LT2P, until $100 has
      been distributed pursuant to this clause;

    

    (B) to
      REMIC
      2 Regular Interest LT2A1, REMIC 2 Regular Interest LT2A2, REMIC 2 Regular
      Interest LT2A3, REMIC 2 Regular Interest LT2M1, REMIC 2 Regular Interest LT2M2,
      REMIC 2 Regular Interest LT2M3, REMIC 2 Regular Interest LT2M4, REMIC 2 Regular
      Interest LT2M5, REMIC 2 Regular Interest LT2M6, REMIC 2 Regular Interest LT2M7,
      REMIC 2 Regular Interest LT2M8, REMIC 2 Regular Interest LT2M9 and REMIC 2
      Regular Interest LT2B1, 1.00% of such remainder, in the same proportion as
      principal payments are allocated to the Corresponding Certificates, until the
      Uncertificated Principal Balances of such REMIC 2 Regular Interests are reduced
      to zero; then

    

    (C) to
      REMIC
      2 Regular Interest LT2ZZ, 1.00% of such remainder, until the Uncertificated
      Principal Balance of such REMIC 2 Regular Interest is reduced to
      zero;

    

    (D) any
      remaining amount to the Holders of the Class R Certificates (in respect of
      the
      Class R-2 Interest);

    

    provided,
      however,
      that
      (i) 98.00% and (ii) 2.00% of any principal payments that are attributable to
      an
      Aggregate Overcollateralization Release Amount shall be allocated to (i) REMIC
      2
      Regular Interest LT2AA and REMIC 2 Regular Interest LT2P and (ii) REMIC 2
      Regular Interest LT2ZZ, respectively.

    

    (iii) to
      REMIC
      2 Regular Interest LT2P, all amounts representing Prepayment Penalties received
      in respect of the REMIC 1 Regular Interest I-47-B for such Distribution
      Date.

    

    On
      each
      Distribution Date, 100% of the amounts distributed on REMIC 2 Regular Interest
      LT2IO shall be deemed distributed by REMIC 3 in respect of the Class SWAP-IO
      Interest. Such amounts shall be deemed distributed by REMIC 3 to the
      Supplemental Interest Trust for deposit into the Swap Account. On each
      Distribution Date, 100% of the amounts distributed on REMIC 2 Regular Interest
      LT2CE2 shall be deemed distributed by REMIC 3 in respect of the Class CE-2
      REMIC
      3 Regular Interest. On each Distribution Date, 100% of the amounts distributed
      on REMIC 2 Regular Interest LT2P, including Prepayment Penalties, shall be
      deemed distributed by REMIC 3 in respect of the Class P REMIC 3 Regular
      Interest. Other amounts deemed distributed by REMIC 2 to REMIC 3 shall be deemed
      distributed with respect to REMIC 3 Regular Interests (other than the Class
      SWAP-IO Interest) so as to (i) pay the Uncertificated Accrued Interest on such
      REMIC 3 Regular Interests and (ii) reduce the Certificate Principal Balance
      or
      Notional Amount of each such REMIC 3 Regular Interest to the extent necessary
      so
      that it equals the Certificate Principal Balance or Notional Amount of the
      corresponding Class of Certificates. Any remaining amounts will be deemed
      distributed with respect to the Class R-3 Interest.

    

    
      
         

      

      
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    (c) The
      Trustee shall be deemed to cause the following allocation of
      losses:

    

    (i) (A) For
      purposes of calculating the amount of Uncertificated Accrued Interest for the
      REMIC 1 Regular Interests for any Distribution Date, the aggregate amount of
      any
      Prepayment Interest Shortfalls (to the extent not covered by payments by the
      Servicer) and any Relief Act Interest Shortfalls shall be allocated first,
      to
      REMIC 1 Regular Interest I and to the REMIC 1 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 Uncertificated REMIC 1 Pass-Through Rates
      on
      the respective Uncertificated Principal Balances of each such REMIC 1 Regular
      Interest, and then, to REMIC 1 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 Uncertificated REMIC 1 Pass-Through Rates on the
      respective Uncertificated Principal Balances of each such REMIC 1 Regular
      Interest.

    

    (B) The
      aggregate amount of any Relief Act Interest Shortfalls incurred in respect
      of
      the Mortgage Loans for any Distribution Date shall be allocated first, to
      Uncertificated Accrued Interest payable to (i) REMIC 2 Regular Interest LT2AA
      and REMIC 2 Regular Interest LT2P and (ii) REMIC 2 Regular Interest LT2ZZ up
      to
      an aggregate amount equal to the REMIC 2 Interest Loss Allocation Amount, 98%
      and 2%, respectively, and thereafter among REMIC 2 Regular Interest LT2AA,
      REMIC
      2 Regular Interest LT2A1, REMIC 2 Regular Interest LT2A2, REMIC 2 Regular
      Interest LT2A3, REMIC 2 Regular Interest LT2M1, REMIC 2 Regular Interest LT2M2,
      REMIC 2 Regular Interest LT2M3, REMIC 2 Regular Interest LT2M4, REMIC 2 Regular
      Interest LT2M5, REMIC 2 Regular Interest LT2M6, REMIC 2 Regular Interest LT2M7,
      REMIC 2 Regular Interest LT2M8, REMIC 2 Regular Interest LT2M9, REMIC 2 Regular
      Interest LT2B1 and REMIC 2 Regular Interest LT2ZZ, pro rata based on, and to
      the
      extent of, one month’s interest at the then applicable respective Uncertificated
      REMIC 2 Pass-Through Rate on the respective Uncertificated Principal Balance
      of
      each such REMIC 2 Regular Interest;

    

    (C) The
      aggregate amount of any Relief Act Interest Shortfalls incurred in respect
      of
      the Mortgage Loans for any Distribution Date shall be allocated to the REMIC
      3
      Regular Interests (other than the Class CE-2 Interest and Class SWAP-IO
      Interest) pro rata based on, and to the extent of, the Uncertificated Accrued
      Interest for such REMIC 3 Regular Interest for such Distribution
      Date.

    

    
      
         

      

      
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    (ii) (A) All
      Realized Losses on the Mortgage Loans shall be allocated on each Distribution
      Date first, to REMIC 1 Regular Interest I until the Uncertificated Principal
      Balance of such REMIC 1 Regular Interest has been reduced to zero and second,
      to
      REMIC 1 Regular Interest I-1-A through REMIC 1 Regular Interest I-47-B, starting
      with the lowest numerical denomination until such REMIC 2 Regular Interest
      has
      been reduced to zero, provided that, for REMIC 2 Regular Interests with the
      same
      numerical denomination, such Realized Losses shall be allocated pro rata between
      such REMIC 1 Regular Interests.

    

    (B) All
      Realized Losses on the Mortgage Loans shall be allocated by the Trustee on
      each
      Distribution Date to the following REMIC 2 Regular Interests in the specified
      percentages, as follows: first, to Uncertificated Accrued Interest payable
      to
      (i) REMIC 2 Regular Interest LT2AA and REMIC 2 Regular Interest LT2P and (ii)
      REMIC 2 Regular Interest LT2ZZ up to an aggregate amount equal to the REMIC
      2
      Interest Loss Allocation Amount, 98% and 2%, respectively; second, to the
      Uncertificated Principal Balances of REMIC 2 Regular Interest LT2AA and REMIC
      2
      Regular Interest LT2ZZ up to an aggregate amount equal to the REMIC 2 Principal
      Loss Allocation Amount, 98% and 2%, respectively; third, to the Uncertificated
      Principal Balances of REMIC 2 Regular Interest LT2AA, REMIC 2 Regular Interest
      LT2B1 and REMIC 2 Regular Interest LT2ZZ, 98%, 1% and 1%, respectively, until
      the Uncertificated Principal Balance of REMIC 2 Regular Interest LT2B1 has
      been
      reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC
      2
      Regular Interest LT2AA, REMIC 2 Regular Interest LT2M9 and REMIC 2 Regular
      Interest LT2ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal
      Balance of REMIC 2 Regular Interest LT2M9 has been reduced to zero; fifth,
      to
      the Uncertificated Principal Balances of REMIC 2 Regular Interest LT2AA, REMIC
      2
      Regular Interest LT2M8 and REMIC 2 Regular Interest LT2ZZ, 98%, 1% and 1%,
      respectively, until the Uncertificated Principal Balance of REMIC 2 Regular
      Interest LT2M8 has been reduced to zero; seventh, to the Uncertificated
      Principal Balances of REMIC 2 Regular Interest LT2AA, REMIC 2 Regular Interest
      LT2M7 and REMIC 2 Regular Interest LT2ZZ, 98%, 1% and 1%, respectively, until
      the Uncertificated Principal Balance of REMIC 2 Regular Interest LT2M7 has
      been
      reduced to zero; eighth, to the Uncertificated Principal Balances of REMIC
      2
      Regular Interest LT2AA, REMIC 2 Regular Interest LT2M6 and REMIC 2 Regular
      Interest LT2ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal
      Balance of REMIC 2 Regular Interest LT2M6 has been reduced to zero; ninth,
      to
      the Uncertificated Principal Balances of REMIC 2 Regular Interest LT2AA, REMIC
      2
      Regular Interest LT2M5 and REMIC 2 Regular Interest LT2ZZ, 98%, 1% and 1%,
      respectively, until the Uncertificated Principal Balance of REMIC 2 Regular
      Interest LT2M5 has been reduced to zero; tenth, to the Uncertificated Principal
      Balances of REMIC 2 Regular Interest LT2AA, REMIC 2 Regular Interest LT2M4
      and
      REMIC 2 Regular Interest LT2ZZ, 98%, 1% and 1%, respectively, until the
      Uncertificated Principal Balance of REMIC 2 Regular Interest LT2M4 has been
      reduced to zero; eleventh, to the Uncertificated Principal Balances of REMIC
      2
      Regular Interest LT2AA, REMIC 2 Regular Interest LT2M3 and REMIC 2 Regular
      Interest LT2ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal
      Balance of REMIC 2 Regular Interest LT2M3 has been reduced to zero; twelfth,
      to
      the Uncertificated Principal Balances of REMIC 2 Regular Interest LT2AA, REMIC
      2
      Regular Interest LT2M2 and REMIC 2 Regular Interest LT2ZZ, 98%, 1% and 1%,
      respectively, until the Uncertificated Principal Balance of REMIC 2 Regular
      Interest LT2M2 has been reduced to zero; and thirteenth, to the Uncertificated
      Principal Balances of REMIC 2 Regular Interest LT2AA, REMIC 2 Regular Interest
      LT2M1 and REMIC 2 Regular Interest LT2ZZ, 98%, 1% and 1%, respectively, until
      the Uncertificated Principal Balances of REMIC 2 Regular Interest LT2M1 has
      been
      reduced to zero.

    

    
      
         

      

      
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    (C) All
      Realized Losses on the Mortgage Loans shall be allocated by the Trustee on
      each
      Distribution Date to the REMIC 3 Regular Interests such that the Uncertificated
      Principal Balance of each such REMIC 3 Regular Interest equals the Certificate
      Principal Balance of the corresponding Class of Certificates.

    

    (d) On
      each
      Distribution Date, all amounts representing Prepayment Penalties will be
      distributed from REMIC 2 Regular Interest LT2P to the holder of the Class P
      Interest. Such amount shall not reduce the Certificate Balance of the Class
      P
      Interest.

    

    (e) All
      distributions in respect of the Class CE-1, Class CE-2, Class P and Class B-1
      Certificates shall be treated as having been made first from REMIC 3 and then
      to
      the Class CE-1, Class P, Class B-1 and Class CE-2 Certificates by REMIC A,
      REMIC
      B, REMIC C and REMIC D, respectively. Any remaining amounts from any of REMIC
      A,
      REMIC B, REMIC C and REMIC D shall be distributed to the Class R-X Certificates,
      respectively.

    

    (f) Notwithstanding
      anything to the contrary contained herein, the above distributions in this
      Section 4.08 (other than on the Certificates are deemed distributions, and
      distributions of funds from the Distribution Account shall be made only in
      accordance with Sections 4.01 and 4.02 hereof.

    

    Section
      4.09. Supplemental
      Interest Trust.

    

    (a) A
      separate trust is hereby established (the “Supplemental
      Interest Trust”),
      the
      corpus of which shall be held by the Supplemental Interest Trust Trustee, in
      trust, for the benefit of the holders of the Offered Certificates and the Class
      CE-1 Certificates. On the Closing Date, the Supplemental Interest Trust Trustee
      shall establish and maintain in its name, two separate accounts for the benefit
      of the holders of the Certificates (the “Cap
      Account”
and
      the
“Swap
      Account”).
      Funds
      on deposit in the Cap Account and Swap Account shall be held separate and apart
      from, and shall not be commingled with, any other moneys, including, without
      limitation, other moneys of the Trust held pursuant to this
      Agreement.

    

    On
      any
      Distribution Date, Cap Payments for such Distribution Date will be deposited
      into the Cap Account and Swap Termination Payments, Net Swap Payments owed
      to
      the Swap Provider and Net Swap Receipts for that Distribution Date will be
      deposited into the Swap Account. For federal income tax purposes, any amounts
      paid to the Swap Provider on each Distribution Date shall first be deemed paid
      to the Supplemental Interest Trust in respect of the Class SWAP-IO Interest
      to
      the extent of the amount distributable on the Class SWAP-IO Interest on such
      Distribution Date, and any remaining amount shall be deemed paid to the
      Supplemental Interest Trust for the benefit of the Swap Provider in respect
      of a
      Class SWAP-IO Distribution Amount (as defined below). Funds in the Cap Account
      and Swap Account will be distributed in the following order of
      priority:

    

    
      
         

      

      
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    (i) to
      the
      Swap Provider, all Net Swap Payments, if any, owed to the Swap Provider for
      such
      Distribution Date;

    

    (ii) to
      the
      Swap Provider, any Swap Termination Payment, other than a Defaulted Swap
      Termination Payment, if any, owed to the Swap Provider;

    

    (iii) concurrently,
      to the Class A Certificates, on a pro
      rata
      basis,
      any remaining applicable Accrued Certificate Interest and Interest Carry Forward
      Amounts for such Distribution Date to the extent unpaid from the Interest
      Remittance Amount and Monthly Excess Cashflow Amounts;

    

    (iv) sequentially,
      to each Class 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,
      any
      remaining Accrued Certificate Interest and Interest Carry Forward Amounts for
      such Distribution Date to the extent unpaid from Interest Remittance Amounts
      and
      Monthly Excess Cashflow Amounts;

    

    (v) to
      the
      Class A-1, Class A-2, Class A-3, 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 and Class B-1
      Certificates, to pay principal as described in Section 4.02(a), as applicable,
      in order to maintain amounts in respect of the Targeted Overcollateralization
      Amount, after giving effect to distributions of the Principal Distribution
      Amount for each such Class;

    

    (vi) sequentially,
      to each Class 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,
      any
      remaining Unpaid Realized Loss Amount for such Distribution Date;

    

    (vii) first,
      to
      the Class A Certificates, pro
      rata,
      based
      on Cap Carryover Amounts, and then 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, any Cap Carryover Amount for such Classes;

    

    (viii) to
      the
      Swap Provider, to fund any Defaulted Swap Termination Payment, to the extent
      not
      already paid; and

    

    (ix) to
      the
      Class CE-1 Certificates, any remaining amounts.

    

    Amounts
      distributed in respect of clauses (v) and (vi) above, together with amounts
      distributed in respect of such clauses on prior Distribution Dates, shall not
      exceed the aggregate of current or prior Realized Losses not previously
      reimbursed by Subsequent Recoveries or through the Monthly Excess Cashflow
      Amount.

    

    
      
         

      

      
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    Upon
      the
      occurrence of an “Early Termination Date” under the Swap Agreement or the Cap
      Agreement, and at the direction of the Depositor, the Supplemental Interest
      Trust Trustee shall use reasonable efforts to replace the Swap Agreement or
      the
      Cap Agreement, as the case may be, with one that is furnished by a replacement
      for the Swap Provider or the Cap Provider, as applicable, acceptable to each
      Rating Agency, and the Supplemental Interest Trust Trustee shall hold in trust
      any amount that is paid to it by the Swap Provider or the Cap Provider, as
      the
      case may be, in respect of any such “Early Termination Date” and apply such
      amount to the purchase of the related replacement. If such amount is
      insufficient to purchase a replacement for the Swap Agreement or the Cap
      Agreement, as applicable, the Supplemental Interest Trust Trustee shall apply
      such amount to replace so much of the Swap Agreement or the Cap Agreement,
      as
      applicable, as it is possible to replace with such amount. If the Swap Provider
      or the Cap Provider, as applicable, transfers its rights and obligations under
      the Swap Agreement or the Cap Agreement, as the case may be, to another party
      in
      accordance therewith or the Supplemental Interest Trust Trustee replaces the
      Swap Agreement or the Cap Agreement with one that is furnished by a replacement
      for the Swap Provider or the Cap Provider, as the case may be, acceptable to
      each Rating Agency in accordance with this Agreement, then the Supplemental
      Interest Trust Trustee shall execute and deliver the related replacement for
      or
      novation of the Swap Agreement or the Cap Agreement, as applicable.

    

    Notwithstanding
      the foregoing, if any portion of the amount that is paid to the Supplemental
      Interest Trust Trustee by the Swap Provider or the Cap Provider in respect
      of
      any “Early Termination Date” cannot be used to find a replacement Swap Agreement
      or Cap Agreement, as the case may be (either because a replacement for the
      Swap
      Agreement or the Cap Agreement, as the case may be, is not available or such
      amount exceeds the amount necessary to purchase such replacement), the
      Supplemental Interest Trust Trustee shall (i) in the case of the Swap Agreement,
      deposit such amount into a reserve account that is a sub-account of the Swap
      Account and on each subsequent Distribution Date (so long as funds are available
      in such reserve account), withdraw from the reserve account and deposit into
      the
      Swap Account an amount equal to the amount of any Net Swap Receipt due the
      Supplemental Interest Trust (calculated in accordance with the terms of the
      original Swap Agreement) and treat such amount as a Net Swap Receipt for
      purposes of determining the distributions from the Swap Account or (ii) in
      the
      case of the Cap Agreement, deposit such amount into a reserve account that
      is a
      sub-account of the Cap Account and on each subsequent Distribution Date (so
      long
      as funds are available in such reserve account), withdraw from the reserve
      account and deposit into the Cap Account an amount equal to the amount of any
      Cap Payment due the Supplemental Interest Trust (calculated in accordance with
      the terms of the original Cap Agreement) and treat such amount as a Cap Payment
      for purposes of determining the distributions from the Cap Account. Upon
      termination of the Trust, any amounts remaining in the Swap Account and the
      Cap
      Account shall be distributed pursuant to the priorities set forth in this
      Section 4.09.

    

    (b) For
      federal income tax purposes, each of the Swap Account and the Cap Account shall
      be owned by the majority Holder of the Class CE-1 Certificates. It is the
      intention and direction 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 and direction 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 Trustee shall be entitled to additional reasonable
      compensation for preparing any required partnership tax filings. The
      Supplemental Interest Trust will be an “outside reserve fund” within the meaning
      of Treasury Regulation Section 1.860G−2(h). The Trustee shall not be responsible
      for the filing of any entity level tax filings of the majority Holders of the
      Class CE-1 Certificates.

    

    
      
         

      

      
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    (c) The
      Trustee shall treat the Holders of Certificates (other than the Class P, Class
      CE-1, Class CE-2, Class R and Class R-X 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, Class R and Class
      R-X 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 3 Regular Interest corresponding to such Class of Certificates over (ii)
      the amount payable on such Class of Certificates on such Distribution Date
      (such
      excess, a “Class SWAP-IO Distribution Amount”). A Class Swap-IO Distribution
      Amount payable from interest collections shall be allocated pro rata among
      such
      Certificates based on the excess of (a) the amount of interest otherwise payable
      to such Certificates over (ii) the amount of interest payable to such
      Certificates at a per annum rate equal to the REMIC 3 Cap, and a Class SWAP-IO
      Distribution Amount payable from principal collections shall be allocated to
      the
      most subordinate Class of 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 Cap Carryover Amounts to the Holders of the Certificates (other
      than the Class B-1, Class CE-1, Class CE-2, Class P, Class R and Class R-X
      Certificates) in accordance with the terms of this Agreement. Any payments
      to
      the 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, Class R and
      Class R-X Certificates) of a Class SWAP-IO Distribution Amount shall be treated
      for tax purposes as having been received by the Holders of such Certificates
      in
      respect of the corresponding REMIC 3 Regular Interest and as having been paid
      by
      such Holders to the Supplemental Interest Trust Trustee pursuant to the notional
      principal contract. Thus, each Certificate (other than the Class CE-2, Class
      P,
      Class R and Class R-X Certificates) shall be treated as representing not only
      ownership of a REMIC 3 Regular Interest, but also ownership of an interest
      in,
      and obligations with respect to, a notional principal contract.

    

    (d) For
      federal income tax purposes, each holder of a Class A, Class M and Class B-1
      Certificate is deemed to own an undivided beneficial ownership interest in
      a
      REMIC 3 Regular Interest and the right to receive payments from either the
      Cap
      Carryover Reserve Account or the Supplemental Interest Trust Swap Account or
      Cap
      Account in respect of the Cap Carryover Amount or the obligation to make
      payments to the Supplemental Interest Trust in respect of the Class SWAP-IO
      Distribution Amount or Swap Termination Payment. For federal income tax
      purposes, the Trustee will account for payments to each Class A, Class M and
      Class B-1 Certificate as follows: each Class A, Class M and Class B-1
      Certificate will be treated as receiving their entire payment from the
      corresponding REMIC 3 Regular Interest (regardless of any Swap Termination
      Payment, Class SWAP-IO Distribution Amount or obligation under the Swap
      Agreement) and subsequently paying their portion of any Swap Termination Payment
      or Class SWAP-IO Distribution Amount in respect of each such Class’ obligation
      under the Swap Agreement. In the event that any such Class is resecuritized
      in
      another REMIC, the obligation under the Swap Agreement to pay any such Swap
      Termination Payment (or any shortfall in the 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 Class A, Class B-1 or Class M Certificate. Resecuritization of any Class
      A,
      Class B-1 or Class M Certificate in a REMIC will be permissible only if the
      Trustee hereunder is the trustee in such resecuritization.

    

    
      
         

      

      
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    (e) The
      REMIC
      3 Regular Interest corresponding to a Class A, Class M or Class B-1 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 the maximum interest rate payable on that REMIC 3 Regular Interest
      will equal the REMIC 3 Cap. As a result of the foregoing, the amount of
      distributions and taxable income on the REMIC 3 Regular Interest corresponding
      to a Class A, Class M or Class B-1 Certificate may exceed the actual amount
      of
      distributions on the Class A, Class M, Class B-1 Certificate.

    

    ARTICLE
      V

    

    THE
      CERTIFICATES

    

    Section
      5.01. The
      Certificates.

    

    Each
      of
      the Class A-1, Class A-2, Class A- 3, 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 B-1, Class CE-1, Class CE-2, Class P, Class R and Class R-X
      Certificates shall be substantially in the forms annexed hereto as exhibits,
      and
      shall, on original issue, be executed by the Trustee and authenticated and
      delivered by the Certificate Registrar to or upon the receipt of a Written
      Order
      to Authenticate from the Depositor concurrently with the sale and assignment
      to
      the Trustee of the Trust Fund. Each Class of the Offered Certificates and the
      Class B-1 Certificates shall be initially evidenced by one or more Certificates
      representing a Percentage Interest with a minimum dollar denomination of
      $100,000 and integral multiples of $1 in excess thereof. The minimum
      denomination for each of the Class P, Class CE-1 and Class CE-2 Certificates
      will be a 10% Percentage Interest in such Class, and the minimum denomination
      for the Class R and Class R-X Certificates shall be 100% Percentage Interest
      in
      such Class.

    

    The
      Certificates shall be executed on behalf of the Trust by manual or facsimile
      signature on behalf of the Trustee by a Responsible Officer. Certificates
      bearing the manual or facsimile signatures of individuals who were, at the
      time
      when such signatures were affixed, authorized to sign on behalf of the Trustee
      shall bind the Trust, notwithstanding that such individuals or any of them
      have
      ceased to be so authorized prior to the authentication and delivery of such
      Certificates or did not hold such offices at the date of such Certificate.
      No
      Certificate shall be entitled to any benefit under this Agreement or be valid
      for any purpose, unless such Certificate shall have been manually authenticated
      by the Certificate Registrar substantially in the form provided for herein,
      and
      such authentication upon any Certificate shall be conclusive evidence, and
      the
      only evidence, that such Certificate has been duly authenticated and delivered
      hereunder. All Certificates shall be dated the date of their authentication.
      Subject to Section 5.02(c), the Offered Certificates and the Class B-1
      Certificates shall be Book-Entry Certificates. The Class CE-1, Class CE-2,
      Class P, Class R and Class R-X Certificates shall not be Book-Entry
      Certificates but shall be issued in fully registered certificate
      form.

    

    
      
         

      

      
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    Section
      5.02. Registration
      of Transfer and Exchange of Certificates.

    

    (a) The
      Certificate Registrar shall cause to be kept at the Corporate Trust Office
      of
      the Trustee a Certificate Register in which, subject to such reasonable
      regulations as it may prescribe, the Certificate Registrar shall provide for
      the
      registration of Certificates and of transfers and exchanges of Certificates
      as
      herein provided. The Trustee shall initially serve as Certificate Registrar
      for
      the purpose of registering Certificates and transfers and exchanges of
      Certificates as herein provided. The Trustee as Certificate Registrar shall
      be
      subject to the same standards of care, limitations on liability and rights
      to
      indemnity as the Trustee, and the provisions of Sections 8.01, 8.02, 8.03,
      8.04,
      8.05, 8.14, 8.15 and 8.16 shall apply to the Certificate Registrar to the same
      extent as they apply to the Trustee. Any Certificate Registrar appointed in
      accordance with this Section 5.02(a) may at any time resign by giving at least
      30 days’ advance written notice of resignation to the Trustee, the Servicer and
      the Depositor, such resignation to become effective upon appointment of a
      successor Certificate Registrar.

    

    Upon
      surrender for registration of transfer of any Certificate at any office or
      agency of the Certificate Registrar maintained for such purpose pursuant to
      the
      foregoing paragraph and, in the case of a Residual Certificate, upon
      satisfaction of the conditions set forth below, the Trustee on behalf of the
      Trust shall execute and the Certificate Registrar shall authenticate and
      deliver, in the name of the designated transferee or transferees, one or more
      new Certificates of the same aggregate Percentage Interest.

    

    At
      the
      option of the Certificateholders, Certificates may be exchanged for other
      Certificates in authorized denominations and the same aggregate Percentage
      Interests, upon surrender of the Certificates to be exchanged at any such office
      or agency. Whenever any Certificates are so surrendered for exchange, the
      Trustee shall execute on behalf of the Trust and the Certificate Registrar
      shall
      authenticate and deliver the Certificates which the Certificateholder making
      the
      exchange is entitled to receive. Every Certificate presented or surrendered
      for
      registration of transfer or exchange shall (if so required by the Trustee or
      the
      Certificate Registrar) be duly endorsed by, or be accompanied by a written
      instrument of transfer satisfactory to the Trustee and the Certificate Registrar
      duly executed by, the Holder thereof or his attorney duly authorized in
      writing.

    

    (b) Upon
      original issuance, the Book-Entry Certificates shall be issued in the form
      of
      one or more typewritten certificates, to be delivered to the Depository, the
      initial Depository, by, or on behalf of, the Depositor; or to, and deposited
      with the Certificate Custodian, on behalf of the Depository, if directed to
      do
      so pursuant to instructions from the Depository. Except as provided in paragraph
      (c) below, the Book-Entry Certificates shall at all times remain registered
      in
      the name of the Depository or its nominee and at all times:
      (i) registration of such Certificates may not be transferred by the Trustee
      except to another Depository; (ii) the Depository shall maintain book-entry
      records with respect to the Certificate Owners and with respect to ownership
      and
      transfers of such Certificates; (iii) ownership and transfers of
      registration of such Certificates on the books of the Depository shall be
      governed by applicable rules established by the Depository; (iv) the
      Depository may collect its usual and customary fees, charges and expenses from
      its Depository Participants; (v) the Trustee shall for all purposes deal
      with the Depository as representative of the Certificate Owners of the
      Certificates for purposes of exercising the rights of Holders under this
      Agreement, and requests and directions for and votes of such representative
      shall not be deemed to be inconsistent if they are made with respect to
      different Certificate Owners; (vi) the Trustee may rely and shall be fully
      protected in relying upon information furnished by the Depository with respect
      to its Depository Participants and furnished by the Depository Participants
      with
      respect to indirect participating firms and Persons shown on the books of such
      indirect participating firms as direct or indirect Certificate Owners; and
      (vii) the direct participants of the Depository shall have no rights under
      this Agreement under or with respect to any of the Certificates held on their
      behalf by the Depository, and the Depository may be treated by the Trustee
      and
      their agents, employees, officers and directors as the absolute owner of the
      Certificates for all purposes whatsoever.

    

    
      
         

      

      
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    All
      transfers by Certificate Owners of Book-Entry Certificates shall be made in
      accordance with the procedures established by the Depository Participant or
      brokerage firm representing such Certificate Owners. Each Depository Participant
      shall only transfer Book-Entry Certificates of Certificate Owners that it
      represents or of brokerage firms for which it acts as agent in accordance with
      the Depository’s normal procedures. The parties hereto are hereby authorized to
      execute a Letter of Representations with the Depository or take such other
      action as may be necessary or desirable to register a Book-Entry Certificate
      to
      the Depository. In the event of any conflict between the terms of any such
      Letter of Representation and this Agreement, the terms of this Agreement shall
      control.

    

    (c) If
      the
      Depository or the Depositor advises the Trustee in writing that the Depository
      is no longer willing or able to discharge properly its responsibilities as
      Depository and the Trustee or the Depositor is unable to locate a qualified
      successor, the Trustee shall notify all Certificate Owners of Book-Entry
      Certificates, through the Depository, of the occurrence of such event and of
      the
      availability of definitive, fully registered certificates (the “Definitive
      Certificates”)
      to
      Certificate Owners requesting the same. Upon surrender to the Certificate
      Registrar of the Book-Entry Certificates by the Depository, accompanied by
      registration instructions from the Depository for registration, the Trustee
      shall, at the Seller’s expense, execute on behalf of the Trust and the
      Certificate Registrar shall authenticate the Definitive Certificates. Neither
      the Depositor nor the Trustee shall be liable for any delay in delivery of
      such
      instructions and may conclusively rely on, and shall be protected in relying
      on,
      such instructions. Upon the issuance of Definitive Certificates, the Trustee,
      the Certificate Registrar, the Servicer, any Paying Agent and the Depositor
      shall recognize the Holders of the Definitive Certificates as Certificateholders
      hereunder.

    

    (d) No
      transfer, sale, pledge or other disposition of any Private Certificate shall
      be
      made unless such disposition is exempt from the registration requirements of
      the
      Securities Act of 1933, as amended (the “1933
      Act”),
      and
      any applicable state securities laws or is made in accordance with the 1933
      Act
      and laws. In the event of any such transfer, other than the initial transfer
      of
      the Private Certificates by the Depositor, (i) unless such transfer is made
      in reliance upon Rule 144A (as evidenced by the investment letter delivered
      to the Certificate Registrar, in substantially the form attached hereto as
      Exhibit J-2)
      under
      the 1933 Act, the Certificate Registrar and the Depositor may require a written
      Opinion of Counsel (which may be in-house counsel) acceptable to and in form
      and
      substance reasonably satisfactory to the Certificate Registrar and the Depositor
      that such transfer may be made pursuant to an exemption, describing the
      applicable exemption and the basis therefor, from the 1933 Act or is being
      made
      pursuant to the 1933 Act, which Opinion of Counsel shall not be an expense
      of
      the Certificate Registrar, the Trustee or the Depositor or (ii) the
      Certificate Registrar shall require the transferor to execute a transferor
      certificate (in substantially the form attached hereto as Exhibit L)
      and the
      transferee to execute an investment letter in substantially the form attached
      hereto as Exhibit J-1
      or J-2
      acceptable to and in form and substance reasonably satisfactory to the Depositor
      and the Certificate Registrar certifying to the Depositor and the Certificate
      Registrar the facts surrounding such transfer, which investment letter shall
      not
      be an expense of the Certificate Registrar or the Depositor. The Holder of
      a
      Private Certificate desiring to effect such transfer shall, and does hereby
      agree to, indemnify the Certificate Registrar and the Depositor against any
      liability that may result if the transfer is not so exempt or is not made in
      accordance with such federal and state laws. For purposes of this Section
      5.02(d) the representations required in any transferor certificate
      (substantially in the form of Exhibit
      L
      hereto)
      and any investment letter (substantially in the form of Exhibit
      J-1 or J-2
      hereto)
      shall be deemed to have been made in connection with the transfer of any Private
      Certificate that is a Book-Entry Certificate.

    

    
      
         

      

      
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    For
      so
      long as the Supplemental Interest Trust is in existence, each beneficial owner
      of a Class A or a Class M Certificate or any interest therein, shall be deemed
      to have represented, by virtue of its acquisition or holding of such
      Certificate, or interest therein, that either (i) it is not a Plan (as defined
      below) nor a person acting on behalf of any such Plan or using the assets of
      any
      such Plan or (ii) (A) it is an accredited investor within the meaning of the
      Underwriter’s Exemption and (B) the acquisition and holding of such certificate
      and the separate right to receive payments from the Supplement Interest Trust
      are eligible for the exemptive relief available under Department of Labor
      Prohibited Transaction Class Exemption (“PTCE”)
      84-14
      (for transactions by independent “qualified professional asset managers”), PTCE
      91-38 (for transactions by bank collective investment funds), PTCE 90-1 (for
      transactions by insurance company pooled separate accounts), PTCE 95-60 (for
      transactions by insurance company general accounts), PTCE 96-23 (for
      transactions effected by “in-house asset managers”) or the statutory exemption
      under Section 408(b)(17) of ERISA (for transactions with certain service
      providers).

    

    No
      transfer of an ERISA-Restricted Certificate, other than the initial transfer
      of
      the Private Certificates by the Depositor, shall be made unless the Certificate
      Registrar shall have received a representation from the transferee of such
      Certificate, acceptable to and in form and substance satisfactory to the Trustee
      and the Depositor (such requirement is satisfied only by the Certificate
      Registrar’s receipt of a representation letter from the transferee substantially
      in the form of Exhibit
      I
      hereto,
      as appropriate), to the effect that such transferee (i) is not an employee
      benefit plan or arrangement subject to Title I of ERISA or a plan subject to
      Section 4975 of the Code (each, a “Plan”),
      nor a
      person acting on behalf of any such Plan nor using the assets of any such Plan
      to effect such transfer or (ii) (except in the case of a Class R, Class R-X,
      Class P or Class CE Certificate) if the purchaser is an insurance company,
      using
      funds from an “insurance company general account” (as such term is defined in
      Section V(e) of Prohibited Transaction Class Exemption 95-60 (60 Fed. Reg.
      35925
      (July 12, 1995) (“PTCE
      95-60”)
      to
      purchase such Certificates, that the purchase and holding of such Certificates
      are covered under Sections I and III of PTCE 95-60 or (iii) (except in the
      case
      of the Class R or R-X Certificate) in the case of any such ERISA-Restricted
      Certificate presented for registration in the name of a Plan, or any person
      acting on behalf of any such Plan or using assets of any such Plan, an Opinion
      of Counsel satisfactory to the Trustee and the Depositor which Opinion of
      Counsel shall not be at the expense of the Trust, the Trustee, the Certificate
      Registrar, the Depositor, the Sponsor or the Servicer, to the effect that the
      purchase or holding of such ERISA Restricted Certificate will not constitute
      or
      result in a non-exempt prohibited transaction within the meaning of ERISA or,
      Section 4975 of the Code and will not subject the Trustee, the Certificate
      Registrar, the Depositor, the Sponsor or the Servicer to any obligation in
      addition to those expressly undertaken in this Agreement. For purposes of clause
      (i) of the preceding sentence, such representation shall be deemed to have
      been
      made to the Trustee by the acceptance by a Certificate Owner of the beneficial
      interest in any such Class of ERISA-Restricted Certificates, unless the Trustee
      shall have received from the transferee an alternative representation acceptable
      in form and substance to the Depositor.

    

    
      
         

      

      
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    Notwithstanding
      anything else to the contrary herein, any purported transfer of an
      ERISA-Restricted Certificate to or on behalf of or with assets of a Plan without
      the delivery to the Trustee of an Opinion of Counsel satisfactory to the Trustee
      and the Depositor as described above shall be void and of no
      effect.

    

    Any
      representations required to be made with in subsection (i) and (ii) above in
      the
      case of an ERISA-Restricted Certificate or with respect to the Class A or Class
      M Certificates and the Supplemental Interest Trust which is also a Book-Entry
      Certificate shall be deemed to have been made by the acquisition of such
      Certificate.

    

    No
      transfer of the Class CE-1 Certificates shall be made unless the proposed
      transferee of such Certificates provides to the Trustee a duly executed IRS
      Form
      W-9, W-8BEN, W-8IMY orW-8ECI (or applicable successor form) and agrees to update
      any such form (i) upon expiration of any such form, (ii) as required under
      then
      applicable U.S. Treasury regulations and (ii) promptly upon learning than any
      such form has become obsolete or incorrect. Upon receipt of any such form,
      the
      Trustee shall provide a copy of such form to the Supplemental Interest Trustee
      and the Supplemental Interest Trust Trustee shall provide a copy of such form
      to
      the Swap Provider. Each holder of a Class CE-1 Certificate and each transferee
      shall be deemed to have consented to the Supplemental Interest Trust Trustee
      forwarding to the Swap Provider any tax certification form it has provided
      and
      updated in accordance with the terms hereof.

    

    Each
      Person who has or who acquires any Ownership Interest in a Residual Certificate
      shall be deemed by the acceptance or acquisition of such Ownership Interest
      to
      have agreed to be bound by the following provisions and to have irrevocably
      appointed the Depositor or its designee as its attorney-in-fact to negotiate
      the
      terms of any mandatory sale under clause (v) below and to execute all
      instruments of transfer and to do all other things necessary in connection
      with
      any such sale, and the rights of each Person acquiring any Ownership Interest
      in
      a Residual Certificate are expressly subject to the following
      provisions:

    

    (i) Each
      Person holding or acquiring any Ownership Interest in a Residual Certificate
      shall be a Permitted Transferee and shall promptly notify the Certificate
      Registrar of any change or impending change in its status as a Permitted
      Transferee.

    

    
      
         

      

      
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    (ii) No
      Person
      shall acquire an Ownership Interest in a Residual Certificate unless such
      Ownership Interest is a pro
      rata
      undivided interest.

    

    (iii) In
      connection with any proposed transfer of any Ownership Interest in a Residual
      Certificate, the Certificate Registrar shall as a condition to registration
      of
      the transfer, require delivery to it, in form and substance satisfactory to
      it,
      of each of the following:

    

    A. an
      affidavit in the form of Exhibit
      K
      hereto
      from the proposed transferee to the effect that, among other things, such
      transferee is a Permitted Transferee and 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 who is not a Permitted
      Transferee; and

    

    B. a
      covenant of the proposed transferee to the effect that the proposed transferee
      agrees to be bound by and to abide by the transfer restrictions applicable
      to
      the Residual Certificates.

    

    (iv) Any
      attempted or purported transfer of any Ownership Interest in a Residual
      Certificate in violation of the provisions of this Section shall be absolutely
      null and void and shall vest no rights in the purported transferee. If any
      purported transferee shall, in violation of the provisions of this Section,
      become a Holder of a Residual Certificate, then the prior Holder of such
      Residual Certificate that is a Permitted Transferee shall, upon discovery that
      the registration of transfer of such Residual Certificate was not in fact
      permitted by this Section, be restored to all rights as Holder thereof
      retroactive to the date of registration of transfer of such Residual
      Certificate. The Certificate Registrar 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 or for making any distributions due on such Residual
      Certificate to the Holder thereof or taking any other action with respect to
      such Holder under the provisions of this Agreement so long as the Certificate
      Registrar received the documents specified in clause (iii). The Trustee
      shall be entitled to recover from any Holder of a Residual Certificate that
      was
      in fact not a Permitted Transferee at the time such distributions were made
      all
      distributions made on such Residual Certificate. Any such distributions so
      recovered by the Trustee shall be distributed and delivered by the Trustee
      to
      the prior Holder of such Residual Certificate that is a Permitted
      Transferee.

    

    (v) If
      any
      Person other than a Permitted Transferee acquires any Ownership Interest in
      a
      Residual Certificate in violation of the restrictions in this Section, then
      the
      Certificate Registrar shall have the right but not the obligation, without
      notice to the Holder of such Residual Certificate or any other Person having
      an
      Ownership Interest therein, to notify the Depositor to arrange for the sale
      of
      such Residual Certificate. The proceeds of such sale, net of commissions (which
      may include commissions payable to the Depositor or its affiliates in connection
      with such sale), expenses and taxes due, if any, will be remitted by the Trustee
      to the previous Holder of such Residual Certificate that is a Permitted
      Transferee, except that in the event that the Trustee determines that the Holder
      of such Residual Certificate may be liable for any amount due under this Section
      or any other provisions of this Agreement, the Trustee may withhold a
      corresponding amount from such remittance as security for such claim. The terms
      and conditions of any sale under this clause (v) shall be determined in the
      sole discretion of the Trustee and it shall not be liable to any Person having
      an Ownership Interest in a Residual Certificate as a result of its exercise
      of
      such discretion.

    

    
      
         

      

      
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    (vi) If
      any
      Person other than a Permitted Transferee acquires any Ownership Interest in
      a
      Residual Certificate in violation of the restrictions in this Section, then
      the
      Trustee will provide to the Internal Revenue Service, and to the persons
      specified in Sections 860E(e)(3) and (6) of the Code, information
      needed to compute the tax imposed under Section 860E(e)(5) of the Code on
      transfers of residual interests to disqualified organizations. The Trustee
      shall
      be entitled to reasonable compensation for providing such information from
      the
      person to whom it is provided.

    

    The
      foregoing provisions of this Section shall cease to apply to transfers occurring
      on or after the date on which there shall have been delivered to the Certificate
      Registrar, in form and substance satisfactory to the Certificate Registrar,
      (i) written notification from each Rating Agency that the removal of the
      restrictions on Transfer set forth in this Section will not cause such Rating
      Agency to downgrade its rating of the Certificates and (ii) an Opinion of
      Counsel to the effect that such removal will not cause any REMIC created
      hereunder to fail to qualify as a REMIC.

    

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

    

    All
      Certificates surrendered for registration of transfer or exchange shall be
      cancelled by the Certificate Registrar and disposed of pursuant to its standard
      procedures.

    

    Section
      5.03. Mutilated,
      Destroyed, Lost or Stolen Certificates.

    

    If
      (i) any mutilated Certificate is surrendered to the Certificate Registrar
      or the Certificate Registrar receives evidence to its satisfaction of the
      destruction, loss or theft of any Certificate and (ii) there is delivered
      to the Trustee, the Depositor and the Certificate Registrar such security or
      indemnity as may be required by them to save each of them harmless, then, in
      the
      absence of notice to the Trustee or the Certificate Registrar that such
      Certificate has been acquired by a bona fide purchaser, the Trustee shall
      execute on behalf of the Trust, and the Certificate Registrar shall authenticate
      and deliver, in exchange for or in lieu of any such mutilated, destroyed, lost
      or stolen Certificate, a new Certificate of like tenor and Percentage Interest.
      Upon the issuance of any new Certificate under this Section, the Trustee or
      the
      Certificate Registrar may require the payment of a sum sufficient to cover
      any
      tax or other governmental charge that may be imposed in relation thereto and
      any
      other expenses (including the fees and expenses of the Trustee and the
      Certificate Registrar) in connection therewith. Any duplicate Certificate issued
      pursuant to this Section, shall constitute complete and indefeasible evidence
      of
      ownership in the Trust, as if originally issued, whether or not the lost, stolen
      or destroyed Certificate shall be found at any time.

    

    
      
         

      

      
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    Section
      5.04. Persons
      Deemed Owners.

    

    The
      Servicer, the Depositor, the Trustee, the Certificate Registrar, any Paying
      Agent and any agent of the Servicer, the Depositor, the Certificate Registrar,
      any Paying Agent or the Trustee may treat the Person, including a Depository,
      in
      whose name any Certificate is registered as the owner of such Certificate for
      the purpose of receiving distributions pursuant to Section 4.01 and 4.02
      and for all other purposes whatsoever, and none of the Servicer, the Trust,
      the
      Trustee, any Paying Agent nor any agent of any of them shall be affected by
      notice to the contrary.

    

    Section
      5.05. Appointment
      of Paying Agent.

    

    The
      Paying Agent shall make distributions to Certificateholders from the
      Distribution Account pursuant to Section 4.01 and 4.02 and shall report the
      amounts of such distributions to the Trustee. The duties of the Paying Agent
      may
      include the obligation (i) to withdraw funds from the Collection Account
      pursuant to Section 3.05 and for the purpose of making the distributions
      referred to above and (ii) to distribute statements and provide information
      to Certificateholders as required hereunder. The Paying Agent hereunder shall
      at
      all times be an entity duly incorporated and validly existing under the laws
      of
      the United States of America or any state thereof, authorized under such laws
      to
      exercise corporate trust powers and subject to supervision or examination by
      federal or state authorities. The Paying Agent shall initially be the Trustee.
      The Trustee may appoint a successor to act as Paying Agent, which appointment
      shall be reasonably satisfactory to the Depositor and the Rating Agencies.
      The
      Trustee as Paying Agent shall be subject to the same standards of care,
      limitations on liability and rights to indemnity as the Trustee, and the
      provisions of Sections 8.01, 8.02, 8.03, 8.04, 8.05, 8.14, 8.15 and 8.16 shall
      apply to the Paying Agent to the same extent as they apply to the Trustee.
      Any
      Paying Agent appointed in accordance with this Section 5.05 may at any time
      resign by giving at least 30 days’ advance written notice of resignation to the
      Trustee, the Servicer and the Depositor, such resignation to become effective
      upon appointment of a successor Paying Agent.

    

    ARTICLE
      VI

    

    THE
      SELLER, THE SERVICER AND THE DEPOSITOR

    

    Section
      6.01. Liability
      of the Seller, the Servicer and the Depositor.

    

    The
      Seller and the Servicer shall be liable in accordance herewith only to the
      extent of the obligations specifically imposed upon and undertaken by the Seller
      or Servicer, as the case may be, herein. The Depositor shall be liable in
      accordance herewith only to the extent of the obligations specifically imposed
      upon and undertaken by the Depositor.

    

    Section
      6.02. Merger
      or Consolidation of, or Assumption of the Obligations of, the Seller, the
      Servicer or the Depositor.

    

    Any
      entity into which the Seller, the Servicer or the Depositor may be merged or
      consolidated, or any entity resulting from any merger, conversion or
      consolidation to which the Seller, the Servicer or the Depositor shall be a
      party, or any corporation succeeding to the business of the Seller, the Servicer
      or the Depositor, shall be the successor of the Seller, the Servicer or the
      Depositor, 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
      the successor Servicer shall satisfy all the requirements of Section 7.02
      with respect to the qualifications of a successor Servicer.

    

    
      
         

      

      
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    As
      a
      condition to the succession to the Servicer under this Agreement by any Person
      (i) into which a Servicer may be merged or consolidated, or (ii) which may
      be
      appointed as a successor to a Servicer, such Servicer shall provide to the
      Depositor, at least 30 calendar days (or 10 Business Days in the case of the
      appointment of the Servicing Rights Pledgee or its designee as successor
      servicer); provided, however that the 30 calendar days or 10 Business Days
      notice period shall not apply once the Depositor is not required to file reports
      pursuant to the Exchange Act) prior to the effective date of such succession
      or
      appointment, (x) written notice to the Depositor of such succession or
      appointment and (y) in writing and in form and substance reasonably satisfactory
      to the Depositor, all information reasonably necessary to enable the Trustee,
      pursuant to Section 3.29(g), to accurately and timely report the event under
      Item 6.02 of Form 8-K pursuant to the Exchange Act (if such reports under the
      Exchange Act are required to be filed under the Exchange Act).

    

    Section
      6.03. Limitation
      on Liability of the Servicer and Others.

    

    Neither
      the Servicer nor any of the directors or officers or employees or agents of
      the
      Servicer shall be under any liability to the Trust or the Certificateholders
      for
      any action taken or for refraining from the taking of any action by the Servicer
      in good faith pursuant to this Agreement, or for errors in judgment;
provided,
      however,
      that
      this provision shall not protect the Servicer or any such Person against any
      liability which would otherwise be imposed by reason of its willful misfeasance,
      bad faith or gross negligence in the performance of duties of the Servicer
      or by
      reason of its reckless disregard of its obligations and duties of the Servicer
      hereunder; provided,
      further,
      that
      this provision shall not be construed to entitle the Servicer to indemnity
      in
      the event that amounts advanced by the Servicer to retire any senior lien exceed
      Liquidation Proceeds (in excess of related liquidation expenses) realized with
      respect to the related Mortgage Loan. The Servicer and any director or officer
      or employee or agent of the Servicer may rely in good faith on any document
      of
      any kind prima facie
      properly
      executed and submitted by any Person respecting any matters arising hereunder.
      The Servicer and any director or officer or employee or agent of the Servicer
      shall be indemnified by the Trust and held harmless against any loss, liability
      or expense incurred in connection with any legal action relating to this
      Agreement or the Certificates, other than any loss, liability or expense
      incurred by reason of its willful misfeasance, bad faith or negligence in the
      performance of duties hereunder or by reason of its reckless disregard of
      obligations and duties hereunder. The Servicer may undertake any such action
      which it may deem necessary or desirable in respect of this Agreement, and
      the
      rights and duties of the parties hereto and the interests of the
      Certificateholders hereunder. In such event, the reasonable legal expenses
      and
      costs of such action and any liability resulting therefrom shall be expenses,
      costs and liabilities of the Trust and the Servicer shall be entitled to pay
      such expenses from the proceeds of the Trust or to be reimbursed therefor
      pursuant to Section 3.05 upon presentation to the Trustee of documentation
      of such expenses, costs and liabilities. The Servicer’s right to indemnity or
      reimbursement pursuant to this Section shall survive any resignation or
      termination of the Servicer pursuant to Section 6.04 or 7.01 with respect
      to any losses, expenses, costs or liabilities arising prior to such resignation
      or termination (or arising from events that occurred prior to such resignation
      or termination). This paragraph shall apply to the Servicer solely in its
      capacity as Servicer hereunder and in no other capacities.

    

    
      
         

      

      
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    Section
      6.04. Servicer
      Not to Resign.

    

    Subject
      to the provisions of Section 7.01, the second paragraph of Section 7.02,
      Section 6.02 and the second paragraph of Section 6.04, the Servicer shall
      not resign from the obligations and duties hereby imposed on it except
      (i) upon determination that the performance of its obligations or duties
      hereunder are no longer permissible under applicable law or are in material
      conflict by reason of applicable law with any other activities carried on by
      it
      or its subsidiaries or Affiliates, the other activities of the Servicer so
      causing such a conflict being of a type and nature carried on by the Servicer
      or
      its subsidiaries or Affiliates at the date of this Agreement or (ii) upon
      satisfaction of the following conditions: (a) either (x) the Servicer has
      proposed a successor servicer to the Trustee in writing and such proposed
      successor servicer is reasonably acceptable to the Trustee or (y) the Servicing
      Rights Pledgee has delivered to the Trustee a letter signed by the Servicer
      whereunder the Servicer resigns as Servicer under this Agreement pursuant to
      the
      second paragraph of this Section 6.04 or the second paragraph of Section
      7.02(a); and (b) each Rating Agency shall have delivered a letter to the
      Trustee prior to the appointment of the successor servicer stating that the
      proposed appointment of such successor servicer as Servicer hereunder will
      not
      result in the reduction or withdrawal of the then current rating of the Offered
      Certificates and Class B-1 Certificates or the ratings that are in effect;
      provided,
      however,
      that no
      such resignation by the Servicer shall become effective until such successor
      servicer or, in the case of (i) above, the Trustee shall have assumed the
      Servicer’s responsibilities and obligations hereunder or the Trustee shall have
      designated a successor servicer in accordance with Section 7.02. Any such
      resignation shall not relieve the Servicer of responsibility for any of the
      obligations specified in Sections 7.01 and 7.02 as obligations that survive
      the resignation or termination of the Servicer. Any such determination
      permitting the resignation of the Servicer pursuant to clause (i) above
      shall be evidenced by an Opinion of Counsel to such effect delivered to the
      Trustee. Any such determination permitting the resignation of the Servicer
      shall
      be evidenced by an Opinion of Counsel to such effect delivered to the
      Trustee.

    

    Notwithstanding
      anything to the contrary set forth above, the Trustee and the Depositor hereby
      specifically (i) consent to the pledge and assignment by the Servicer of
      all the Servicer’s right, title and interest in, to and under this Agreement to
      the Servicing Rights Pledgee, for the benefit of certain lenders, and
      (ii) provided that no Servicer Event of Termination exists, agree that upon
      delivery to the Trustee by the Servicing Rights Pledgee of a letter signed
      by
      the Servicer whereunder the Servicer shall resign as Servicer under this
      Agreement, the Trustee shall appoint the Servicing Rights Pledgee or its
      designee as successor Servicer, provided that at the time of such appointment,
      the Servicing Rights Pledgee or such designee meets the requirements of a
      successor Servicer pursuant to Section 7.02(a) and agrees to be subject to
      the terms of this Agreement. If, pursuant to any provision hereof, the duties
      of
      the Servicer are transferred to a successor, the entire amount of the Servicing
      Fee and other compensation payable to the Servicer pursuant hereto shall
      thereafter be payable to such successor.

    

    
      
         

      

      
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    Section
      6.05. Advance
      Facility.

    

    (a) The
      Servicer is hereby authorized to enter into a financing or other facility (any
      such arrangement, an “Advance
      Facility”),
      the
      documentation for which complies with Section 6.05(e) below, under which (1)
      the
      Servicer assigns or pledges its rights under this Agreement to be reimbursed
      for
      any or all Advances and/or Servicing Advances to (i) a Person, which may be
      a
      special-purpose bankruptcy-remote entity (an “SPV”),
      (ii)
      a Person, which may simultaneously assign or pledge such rights to an SPV or
      (iii) a lender (a “Lender”),
      which, in the case of any Person or SPV of the type described in either of
      the
      preceding clauses (i) or (ii), may directly or through other assignees and/or
      pledgees, assign or pledge such rights to a Person, which may include a trustee
      acting on behalf of holders of debt instruments (any such Person or any such
      Lender, an “Advance
      Financing Person”),
      and/or (2) an Advance Financing Person agrees to fund all the Advances and/or
      Servicing Advances required to be made by the Servicer pursuant to this
      Agreement. No consent of the Trustee, Certificateholders or any other party
      shall be required before the Servicer may enter into an Advance Facility nor
      shall the Trustee or the Certificateholders be a third party beneficiary of
      any
      obligation of an Advance Financing Person to the Servicer. Notwithstanding
      the
      existence of any Advance Facility under which an Advance Financing Person agrees
      to fund Advances and/or Servicing Advances, (A) the Servicer (i) shall remain
      obligated pursuant to this Agreement to make Advances and/or Servicing Advances
      pursuant to and as required by this Agreement and (ii) shall not be relieved
      of
      such obligations by virtue of such Advance Facility and (B) neither the Advance
      Financing Person nor any Servicer’s Assignee (as hereinafter defined) shall have
      any right to proceed against or otherwise contact any Mortgagor for the purpose
      of collecting any payment that may be due with respect to any related Mortgage
      Loan or enforcing any covenant of such Mortgagor under the related Mortgage
      Loan
      documents.

    

    (b) If
      the
      Servicer enters into an Advance Facility, the Servicer and the related Advance
      Financing Person shall deliver to the Trustee at the address set forth in
      Section 11.05 hereof a written notice (an “Advance
      Facility Notice”),
      stating (a) the identity of the Advance Financing Person and (b) the identity
      of
      the Person (the “Servicer’s
      Assignee”)
      that
      will, subject to Section 6.05(c) hereof, have the right to make withdrawals
      from
      the Collection Account pursuant to Section 3.05 hereof to reimburse previously
      unreimbursed Advances and/or Servicing Advances (“Advance
      Reimbursement Amounts”).
      Advance Reimbursement Amounts (i) shall consist solely of amounts in respect
      of
      Advances and/or Servicing Advances for which the Servicer would be permitted
      to
      reimburse itself in accordance with Section 3.05 hereof, assuming the Servicer
      had made the related Advance(s) and/or Servicing Advance(s) and (ii) shall
      not
      consist of amounts payable to a successor Servicer in accordance with Section
      3.05 hereof to the extent permitted under Section 6.05(e) below.

    

    (c) Notwithstanding
      the existence of an Advance Facility, the Servicer, on behalf of the Advance
      Financing Person, shall be entitled to receive reimbursements of Advances and/or
      Servicing Advances in accordance with Section 3.05 hereof, which entitlement
      may
      be terminated by the Advance Financing Person pursuant to a written notice
      to
      the Trustee in the manner set forth in Section 11.05 hereof. Upon receipt of
      such written notice, the Servicer shall no longer be entitled to receive
      reimbursement for any Advance Reimbursement Amounts and the Servicer’s Assignee
      shall immediately have the right to receive from the Collection Account all
      Advance Reimbursement Amounts. Notwithstanding the foregoing, and for the
      avoidance of doubt, (i) the Servicer and/or the Servicer’s Assignee shall only
      be entitled to reimbursement of Advance Reimbursement Amounts hereunder pursuant
      to Section 3.05 of this Agreement and shall not otherwise be entitled to make
      withdrawals of, or receive, Advance Reimbursement Amounts that shall be
      deposited in the Distribution Account pursuant to Section 3.04(b) hereof, and
      (ii) none of the Trustee or the Certificateholders shall have any right to,
      or
      otherwise be entitled to, receive any Advance Reimbursement Amounts to which
      the
      Servicer or Servicer’s Assignee, as applicable, shall be entitled pursuant to
      Section 3.05 hereof. Without limiting the foregoing, none of the Trustee or
      the
      Certificateholders shall have any right to set off against Advance Reimbursement
      Amounts hereunder. An Advance Facility may be terminated by the joint written
      direction of the Servicer and the related Advance Financing Person. Written
      notice of such termination shall be delivered to the Trustee in the manner
      set
      forth in Section 11.05 hereof. The Trustee shall have no duty or liability
      with
      respect to the calculation of any Advance Reimbursement Amount and shall be
      entitled to rely without independent investigation on the Advance Facility
      Notice and on such Servicer’s report of the amount of Advance Reimbursement
      Amounts and Servicing Advance Reimbursement Amounts that were included in the
      remittance from such Servicer to the Trustee pursuant to Section 4.07. Such
      Servicer shall maintain and provide to any successor Servicer 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.

    

    
      
         

      

      
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    (d) [Reserved].

    

    (e) As
      between a predecessor Servicer and its Advance Financing Person, on the one
      hand, and a successor Servicer and its Advance Financing Person, if any, on
      the
      other hand, Advance Reimbursement Amounts on a loan-by-loan basis with respect
      to each Mortgage Loan as to which an Advance and/or Servicing Advance shall
      have
      been made and be outstanding shall be allocated on a “first-in, first out”
basis. In the event the Servicer’s Assignee shall have received some or all of
      an Advance Reimbursement Amount related to Advances and/or Servicing Advances
      that were made by a Person other than such predecessor Servicer or its related
      Advance Financing Person in error, then such Servicer’s Assignee shall be
      required to remit any portion of such Advance Reimbursement Amount to each
      Person entitled to such portion of such Advance Reimbursement Amount. Without
      limiting the generality of the foregoing, the Servicer shall remain entitled
      to
      be reimbursed by the Advance Financing Person for all Advances and/or Servicing
      Advances funded by the Servicer to the extent the related Advance Reimbursement
      Amounts have not been assigned or pledged to such Advance Financing Person
      or
      Servicer’s Assignee.

    

    (f) For
      purposes of any certification of a Servicing Officer of the Servicer made
      pursuant to Section 4.07(d), any Nonrecoverable Advance referred to therein
      may
      have been made by such Servicer or any predecessor Servicer. In making its
      determination that any Advance or Servicing Advance theretofore made has become
      a Nonrecoverable Advance, the Servicer shall apply the same criteria in making
      such determination regardless of whether such Advance or Servicing Advance
      shall
      have been made by the Servicer or any predecessor Servicer.

    

    
      
         

      

      
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    (g) The
      Trustee shall not, as a result of the existence of any Advance Facility, have
      any additional responsibility to track or monitor Advance Reimbursement Amounts
      or any Advance Facility, and, except as expressly provided in Section 6.05(c)
      above, is not and shall not be obligated to make any payment with respect to
      any
      Advance Reimbursement Amount. The Servicer hereby indemnifies the Trustee,
      the
      Trust Fund and any successor Servicer, as applicable, from and against any
      claims, losses, liabilities or damages resulting from any claim by the related
      Advancing Person, except to the extent that such claim, loss, liability or
      damage resulted from or arose out of negligence, recklessness or willful
      misconduct on the part of the Trustee or the successor Servicer, or failure
      by
      the successor Servicer or the Trustee to remit funds as required by this
      Agreement or the commission of an act or omission to act by the successor
      Servicer or the Trustee, and the passage of any applicable cure or grace period,
      such that a Servicer Event of Termination under this Agreement occurs or such
      entity is subject to termination for cause under this Agreement.

    

    ARTICLE
      VII

    

    DEFAULT

    

    Section
      7.01. Servicer
      Events of Termination.

    

    (a) If
      any
      one of the following events (each, a “Servicer
      Event of Termination”)
      shall
      occur and be continuing:

    

    (i) (A) The
      failure by the Servicer to make any required Advance; or (B) any other
      failure by the Servicer to deposit in the Collection Account or Distribution
      Account any deposit required to be made under the terms of this Agreement which
      continues unremedied for a period of one Business Day after the date upon which
      written notice of such failure shall have been given to the Servicer by the
      Trustee or by any Holder of a Certificate (other than the Residual Certificates)
      evidencing at least 25% of the Voting Rights; or

    

    (ii) The
      failure by the Servicer to make any required Servicing Advance which failure
      continues unremedied for a period of 30 days, or the failure by the Servicer
      duly to observe or perform, in any material respect, any other covenants,
      obligations or agreements of the Servicer as set forth in this Agreement, which
      failure continues unremedied for a period of 30 days, after the date (A) on
      which written notice of such failure, requiring the same to be remedied, shall
      have been given to the Servicer by the Trustee or by any Holder of a Certificate
      (other than a Residual Certificate) evidencing at least 25% of the Voting Rights
      or (B) actual knowledge of such failure by a Servicing Officer of the
      Servicer; or

    

    (iii) The
      entry
      against the Servicer of a decree or order by a court or agency or supervisory
      authority having jurisdiction in the premises for the appointment of a trustee,
      conservator, receiver or liquidator in any insolvency, conservatorship,
      receivership, readjustment of debt, marshalling of assets and liabilities or
      similar proceedings, or for the winding up or liquidation of its affairs, and
      the continuance of any such decree or order unstayed and in effect for a period
      of 60 days; or

    

    
      
         

      

      
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    (iv) The
      Servicer shall voluntarily go into liquidation, consent to the appointment
      of a
      conservator or receiver or liquidator or similar person in any insolvency,
      readjustment of debt, marshalling of assets and liabilities or similar
      proceedings of or relating to the Servicer or of or relating to all or
      substantially all of its property; or a decree or order of a court or agency
      or
      supervisory authority having jurisdiction in the premises for the appointment
      of
      a conservator, receiver, liquidator or similar person in any insolvency,
      readjustment of debt, marshalling of assets and liabilities or similar
      proceedings, or for the winding-up or liquidation of its affairs, shall have
      been entered against the Servicer and such decree or order shall have remained
      in force undischarged, unbonded or unstayed for a period of 60 days; or the
      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) The
      aggregate amount of cumulative Realized Losses incurred since the Cut-off Date
      through the last day of the related Collection Period (reduced by the aggregate
      amount of Subsequent Recoveries received since the Cut-off Date through the
      last
      day of the related Collection Period) divided by the Pool Balance as of the
      Cut-off Date exceeds the applicable percentages set forth below with respect
      to
      such Distribution Date:

     

    
      	
              Distribution
                Date Occurring In

            	
              Percentage

            
	
              June
                2010 through May 2011

            	
              5.250%
                for the first month, plus an additional 1/12th of 2.925% for each
                month
                thereafter,

            
	
              June
                2011 through May 2012

            	
              8.175%
                for the first month, plus an additional 1/12th of 2.400% for each
                month
                thereafter,

            
	
              June
                2012 through May 2013

            	
              10.575%
                for the first month, plus an additional 1/12th of 1.350% for each
                month
                thereafter,

            
	
              June
                2013 and thereafter

            	
              11.925%

            

    

     

    (b) Then,
      and
      in each and every such case, so long as a Servicer Event of Termination shall
      not have been remedied within the applicable grace period, (x) with respect
      solely to clause (i)(A) above, if such Advance is not made by 11:00 AM, New
      York
      time, on the Business Day immediately following the Servicer Remittance Date,
      the Trustee may terminate all of the rights and obligations of the Servicer
      under this Agreement and the Trustee, or a successor servicer appointed in
      accordance with Section 7.02, shall immediately make such Advance and
      assume, pursuant to Section 7.02, the duties of a successor Servicer and
      (y) in the case of (i)(B), (ii), (iii), (iv) and (v) above, the Trustee
      shall, at the direction of the Holders of each Class of Certificates (other
      than
      the Residual Certificates) evidencing Percentage Interests aggregating not
      less
      than 51%, by notice then given in writing to the Servicer (and to the Trustee
      if
      given by Holders of Certificates), terminate all of the rights and obligations
      of the Servicer as servicer under this Agreement. Any such notice to the
      Servicer shall also be given to each Rating Agency, the Depositor and the
      Seller. On or after the receipt by the Servicer (and by the Trustee if such
      notice is given by the Holders) of such written notice, all authority and power
      of the Servicer under this Agreement, whether with respect to the Certificates
      or the Mortgage Loans or otherwise, shall pass to and be vested in the Trustee
      pursuant to and under this Section; and, without limitation, the Trustee is
      hereby authorized and empowered to execute and deliver, on behalf of the
      Servicer, as attorney-in-fact or otherwise, any and all documents and other
      instruments, and to do or accomplish all other acts or things necessary or
      appropriate to effect the purposes of such notice of termination, whether to
      complete the transfer and endorsement of each Mortgage Loan and Related
      Documents or otherwise. The Servicer agrees to cooperate with the Trustee (or
      the applicable successor Servicer) in effecting the termination of the
      responsibilities and rights of the Servicer hereunder, including, without
      limitation, the delivery to the Trustee (or the applicable successor Servicer)
      of all documents and records requested by it to enable it to assume the
      Servicer’s functions under this Agreement within ten Business Days subsequent to
      such notice, the transfer within one Business Day subsequent to such notice
      to
      the applicable successor Servicer for the administration by it of all cash
      amounts that shall at the time be held by the Servicer and to be deposited
      by it
      in the Collection Account, the Distribution Account, any REO Account or any
      Escrow Account or that have been deposited by the Servicer in such accounts
      or
      thereafter received by the Servicer with respect to the Mortgage Loans or any
      REO Property received by the Servicer. All reasonable costs and expenses
      (including attorneys’ fees) incurred in connection with transferring the
      servicing to the successor Servicer and amending this Agreement to reflect
      such
      succession as Servicer pursuant to this Section shall be paid by the predecessor
      Servicer (or if the predecessor Servicer is the Trustee, the initial Servicer)
      upon presentation of reasonable documentation of such costs and expenses, and
      if
      such predecessor Servicer defaults in its obligation to pay such costs, such
      costs shall be borne by the Trust.

    

    
      
         

      

      
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    Section
      7.02. Trustee
      to Act; Appointment of Successor.

    

    (a) Within
      90
      days of the time the Servicer (and the Trustee, if notice is sent by the
      Holders) receives a notice of termination pursuant to Section 7.01 or 6.04,
      the
      Trustee (or such other successor Servicer as is approved in accordance with
      this
      Agreement) shall be the successor in all respects to the Servicer in its
      capacity as servicer under this Agreement and the transactions set forth or
      provided for herein and shall be subject to all the responsibilities, duties
      and
      liabilities relating thereto placed on the Servicer by the terms and provisions
      hereof arising on and after its succession except that the Trustee shall not
      be
      (i) liable for any acts or omissions of the predecessor Servicer hereunder,
      (ii)
      responsible for expenses of the predecessor Servicer pursuant to Section 2.03,
      (iii) obligated to make Advances if it is prohibited from doing so by applicable
      law or (iv) deemed to have made any representations and warranties of the
      Servicer hereunder. As compensation therefor, the Trustee (or such other
      successor Servicer) shall be entitled to such compensation as the Servicer
      would
      have been entitled to hereunder if no such notice of termination had been given.
      Notwithstanding the above, (i) if the Trustee is unwilling to act as
      successor Servicer or (ii) if the Trustee is legally unable so to act, the
      Trustee shall appoint or petition a court of competent jurisdiction to appoint,
      any established housing and home finance institution, bank or other mortgage
      loan or home equity loan servicer having a net worth of not less than
      $50,000,000 as the successor to the Servicer hereunder in the assumption of
      all
      or any part of the responsibilities, duties or liabilities of the Servicer
      hereunder; provided,
      that
      the appointment of any such successor Servicer will not result in the
      qualification, reduction or withdrawal of the ratings assigned to the
      Certificates or the ratings that are in effect by the Rating Agencies as
      evidenced by a letter to such effect from the Rating Agencies. Pending
      appointment of a successor to the Servicer hereunder, unless the Trustee is
      prohibited by law from so acting, the Trustee shall act in such capacity as
      hereinabove provided. In connection with such appointment and assumption, the
      successor shall be entitled to receive compensation out of payments on Mortgage
      Loans in an amount equal to the compensation which the Servicer would otherwise
      have received pursuant to Section 3.18 (or such other compensation as the
      Trustee and such successor shall agree, not to exceed the Servicing Fee). The
      successor servicer shall be entitled to withdraw from the Collection Account
      all
      costs and expenses associated with the transfer of the servicing to the
      successor servicer. The appointment of a successor servicer shall not affect
      any
      liability of the predecessor Servicer which may have arisen under this Agreement
      prior to its termination as Servicer to pay any deductible under an insurance
      policy pursuant to Section 3.12 or to indemnify the parties indicated in
      Section 3.26 pursuant to the terms thereof, nor shall any successor
      Servicer be liable for any acts or omissions of the predecessor Servicer or
      for
      any breach by such Servicer of any of its representations or warranties
      contained herein or in any related document or agreement. The Trustee and such
      successor shall take such action, consistent with this Agreement, as shall
      be
      necessary to effectuate any such succession.

    

    
      
         

      

      
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    In
      the
      event of a Servicer Event of Termination, notwithstanding anything to the
      contrary above, the Trustee and the Depositor hereby agree that upon delivery
      to
      the Trustee by the Servicing Rights Pledgee of a letter signed by the Servicer
      within ten Business Days of when notification of such event shall have been
      provided to the Trustee, whereunder the Servicer shall resign as Servicer under
      this Agreement, the Servicing Rights Pledgee or its designee shall be appointed
      as successor Servicer (provided that at the time of such appointment the
      Servicing Rights Pledgee or such designee meets the requirements of a successor
      Servicer set forth above) and the Servicing Rights Pledgee agrees to be subject
      to the terms of this Agreement.

    

    (b) Any
      successor, including the Trustee, to the Servicer as servicer shall during
      the
      term of its service as servicer continue to service and administer the Mortgage
      Loans for the benefit of Certificateholders, and maintain in force a policy
      or
      policies of insurance covering errors and omissions in the performance of its
      obligations as Servicer hereunder and a Fidelity Bond in respect of its
      officers, employees and agents to the same extent as the Servicer is so required
      pursuant to Section 3.12.

    

    Section
      7.03. Waiver
      of Defaults.

    

    The
      Holders of Certificates entitled to at least 66 2/3% of the Voting Rights
      allocated to the Class of Certificates affected by a Servicer Event of
      Termination may, on behalf of all Certificateholders, waive any events
      permitting removal of the Servicer as servicer pursuant to this
      Article VII, provided,
      however,
      that
      such Holders may not waive a default in making a required distribution on a
      Certificate without the consent of the Holder of such Certificate. Upon any
      waiver of a past default, such default shall cease to exist and any Servicer
      Event of Termination arising therefrom shall be deemed to have been remedied
      for
      every purpose of this Agreement. No such waiver shall extend to any subsequent
      or other default or impair any right consequent thereto except to the extent
      expressly so waived. Notice of any such waiver shall be given by the Trustee
      to
      the Rating Agencies.

    

    
      
         

      

      
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    Section
      7.04. Notification
      to Certificateholders.

    

    (a) On
      any
      termination or appointment of a successor the Servicer pursuant to this
      Article VII or Section 6.04, the Trustee shall give prompt written
      notice thereof to the Certificateholders at their respective addresses appearing
      in the Certificate Register and each Rating Agency.

    

    (b) No
      later
      than 60 days after the occurrence of any event which constitutes or which,
      with
      notice or a lapse of time or both, would constitute a Servicer Event of
      Termination for five Business 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 Certificateholders notice of such occurrence unless such default
      or
      Servicer Event of Termination shall have been waived or cured. Such notice
      shall
      be given to the Rating Agencies promptly after any such occurrence.

    

    Section
      7.05. Survivability
      of Servicer Liabilities.

    

    Notwithstanding
      anything herein to the contrary, upon termination of the Servicer hereunder,
      any
      liabilities of the Servicer which accrued prior to such termination shall
      survive such termination.

    

    ARTICLE
      VIII

    

    THE
      TRUSTEE

    

    Section
      8.01. Duties
      of Trustee.

    

    The
      Trustee, prior to the occurrence of a Servicer Event of Termination of which
      a
      Responsible Officer of the Trustee shall have actual knowledge and after the
      curing of all Servicer Events of Termination which may have occurred, undertakes
      to perform such duties and only such duties as are specifically set forth in
      this Agreement. If a Servicer Event of Termination has occurred (which has
      not
      been cured) of which a Responsible Officer has actual knowledge, the Trustee
      shall exercise such of the rights and powers vested in it by this Agreement,
      and
      use the same degree of care and skill in their exercise, as a prudent person
      would exercise or use under the circumstances in the conduct of such person’s
      own affairs.

    

    The
      Trustee, upon receipt of all resolutions, certificates, statements, opinions,
      reports, documents, orders or other instruments furnished to the Trustee which
      are specifically required to be furnished pursuant to any provision of this
      Agreement, shall examine them to determine whether they conform to the
      requirements of this Agreement; provided,
      however,
      that
      that the Trustee shall not be responsible for the accuracy or content of any
      resolution, certificate, statement, opinion, report, document, order or other
      instrument furnished by the Servicer, the Seller or the Depositor hereunder.
      If
      any such instrument is found not to conform in any material respect to the
      requirements of this Agreement, the Trustee shall notify the Certificateholders
      of such instrument in the event that the Trustee, after so requesting, does
      not
      receive a satisfactorily corrected instrument.

    

    
      
         

      

      
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    No
      provision of this Agreement shall be construed to relieve the Trustee 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 Servicer Event of Termination, and after the curing of
      all
      such Servicer Events of Termination which may have occurred, the duties and
      obligations of the Trustee shall be determined solely by the express provisions
      of this Agreement, the Trustee shall not 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 and, in the absence of bad faith on the part of the Trustee, the Trustee
      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 and conforming to the requirements of this Agreement;

    

    (ii) the
      Trustee shall not be liable for an error of judgment made in good faith by
      a
      Responsible Officer of the Trustee unless it shall be proved that the Trustee
      was negligent in ascertaining or investigating the facts related
      thereto;

    

    (iii) the
      Trustee shall not 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
      Majority Certificateholders relating to the time, method and place of conducting
      any proceeding for any remedy available to the Trustee or exercising or omitting
      to exercise any trust or power conferred upon the Trustee under this Agreement;
      and

    

    (iv) the
      Trustee shall not be charged with knowledge of any failure by the Servicer
      to
      comply with the obligations of the Servicer referred to in clauses (i)
      and (ii) of Section 7.01(a) or any Servicer Event of Termination
      unless a Responsible Officer of the Trustee at the applicable Corporate Trust
      Office obtains actual knowledge of such failure or the Trustee receives written
      notice of such failure from the Servicer or the Majority Certificateholders.
      In
      the absence of such receipt of such notice, the Trustee may conclusively assume
      that there is no Servicer Event of Termination.

    

    The
      Trustee shall not be required to expend or risk its own funds or otherwise
      incur
      financial liability in the performance of any of its duties hereunder, or in
      the
      exercise of any of its rights or powers, if there is reasonable ground for
      believing that the repayment of such funds or adequate indemnity against such
      risk or liability is not reasonably assured to it, and none of the provisions
      contained in this Agreement shall in any event require the Trustee to perform,
      or be responsible for the manner of performance of, any of the obligations
      of
      the Servicer under this Agreement, except during such time, if any, as the
      Trustee shall be the successor to, and be vested with the rights, duties, powers
      and privileges of, the Servicer in accordance with the terms of this
      Agreement.

    

    The
      Trustee shall not have any duty (A) to see any recording, filing, or
      depositing of this Agreement or any agreement referred to herein or any
      financing statement or continuation statement evidencing a security interest,
      or
      to see to the maintenance of any such recording or filing or depositing or
      to
      any rerecording, refiling or redepositing of any thereof, (B) to see to any
      insurance or (C) to see to the payment or discharge of any tax, assessment,
      or other governmental charge or any lien or encumbrance of any kind owing with
      respect to, assessed or levied against, any part of the Trust Fund other than
      from funds available in the Distribution Account.

    

    
      
         

      

      
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    The
      Trustee shall have no duty hereunder with respect to any complaint, claim,
      demand, notice or other document it may receive or which may be alleged to
      have
      been delivered to or served upon it by the parties as a consequence of the
      assignment of any Mortgage Loan hereunder; provided, however, that the Trustee
      shall promptly remit to the Servicer upon receipt any such complaint, claim,
      demand, notice or other document (i) which is delivered to the Trustee at its
      Corporate Trust Office; (ii) of which a Responsible Officer has actual knowledge
      and (iii) which contains information sufficient to permit the Trustee to make
      a
      determination that the real property to which such document relates to is a
      Mortgaged Property.

    

    Section
      8.02. Certain
      Matters Affecting the Trustee.

    

    (a) Except
      as
      otherwise provided in Section 8.01:

    

    (i) the
      Trustee may request and rely upon, and shall be protected in acting or
      refraining from acting upon, any resolution, Officer’s 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 may consult with counsel and any advice or 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) the
      Trustee shall not be under any obligation to exercise any of the rights or
      powers vested in it by this Agreement, or to institute, conduct or defend any
      litigation hereunder or in relation hereto, at the request, order or direction
      of the Certificateholders pursuant to the provisions of this Agreement, unless
      such Certificateholders shall have offered to the Trustee reasonable security
      or
      indemnity against the costs, expenses and liabilities which may be incurred
      therein or thereby; the right of the Trustee to perform any discretionary act
      enumerated in this Agreement shall not be construed as a duty, and the Trustee
      shall not be answerable for other than its negligence or willful misconduct
      in
      the performance of any such act;

    

    (iv) the
      Trustee shall not 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 Servicer Event of Termination and after the curing of all
      Servicer Events of Termination which may have occurred, the Trustee shall not
      be
      bound to make any investigation into the facts or matters stated in any
      resolution, certificate, statement, instrument, opinion, report, notice,
      request, consent, order, approval, bond or other paper or documents, unless
      requested in writing to do so by the Majority Certificateholder; provided,
      however,
      that if
      the payment within a reasonable time to the Trustee 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 not reasonably assured to the Trustee by the
      security afforded to it by the terms of this Agreement, the Trustee may require
      reasonable indemnity against such cost, expense or liability as a condition
      to
      such proceeding. The reasonable expense of every such examination shall be
      paid
      by the Servicer or, if paid by the Trustee shall be reimbursed by the Servicer
      upon demand. Nothing in this clause (v) shall derogate from the obligation
      of the Servicer to observe any applicable law prohibiting disclosure of
      information regarding the Mortgagors;

    

    
      
         

      

      
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    (vi) the
      Trustee shall not be accountable, shall not have any liability and shall not
      make any representation as to any acts or omissions hereunder of the Servicer
      until such time as the Trustee may be required to act as Servicer pursuant
      to
      Section 7.02;

    

    (vii) 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 or a custodian
      and the Trustee shall not be responsible for any misconduct or negligence on
      the
      part of the Custodian or any such agent, attorney or custodian appointed by
      it
      with due care; and

    

    (viii) the
      right
      of the Trustee to perform any discretionary act enumerated in this Agreement
      shall not be construed as a duty, and the Trustee shall not be answerable for
      other than its negligence or willful misconduct in the performance of such
      act.

    

    Section
      8.03. Trustee
      Not Liable for Certificates or Mortgage Loans.

    

    The
      recitals contained herein and in the Certificates (other than the authentication
      of the Trustee on the Certificates) shall be taken as the statements of the
      Seller, and the Trustee does not assumes any responsibility for the correctness
      of the same. The Trustee makes no representations as to the validity or
      sufficiency of this Agreement or of the Certificates (other than the signature
      and authentication of the Trustee on the Certificates) or of any Mortgage Loan
      or Related Document. The Trustee shall not be accountable for the use or
      application by the Servicer, or for the use or application of any funds paid
      to
      the Servicer in respect of the Mortgage Loans or deposited in or withdrawn
      from
      the Collection Account by the Servicer. The Trustee shall not at any time have
      any responsibility or liability for or with respect to the legality, validity
      and enforceability of any Mortgage or any Mortgage Loan, or the perfection
      and
      priority of any Mortgage or the maintenance of any such perfection and priority,
      or for or with respect to the sufficiency of the Trust or its ability to
      generate the payments to be distributed to Certificateholders under this
      Agreement, including, without limitation: the existence, condition and ownership
      of any Mortgaged Property; the existence and enforceability of any hazard
      insurance thereon (other than if the Trustee shall assume the duties of the
      Servicer pursuant to Section 7.02); the validity of the assignment of any
      Mortgage Loan to the Trustee or of any intervening assignment; the completeness
      of any Mortgage Loan; the performance or enforcement of any Mortgage Loan (other
      than if the Trustee shall assume the duties of the Servicer pursuant to
      Section 7.02); the compliance by the Depositor, the Seller or the Servicer
      with any warranty or representation made under this Agreement or in any related
      document or the accuracy of any such warranty or representation prior to the
      Trustee’s receipt of notice or other discovery of any non-compliance therewith
      or any breach thereof; any investment of monies by or at the direction of the
      Servicer or any loss resulting therefrom; the acts or omissions of the Servicer
      (other than if the Trustee shall assume the duties of the Servicer pursuant
      to
      Section 7.02), or any Mortgagor; any action of the Servicer (other than if
      the Trustee shall assume the duties of the Servicer pursuant to
      Section 7.02), taken in the name of the Trustee; the failure of the
      Servicer to act or perform any duties required of it as agent of the Trustee
      hereunder; or any action by the Trustee taken at the instruction of the Servicer
      (other than if the Trustee shall assume the duties of the Servicer pursuant
      to
      Section 7.02); provided,
      however,
      that
      the foregoing shall not relieve the Trustee of its obligation to perform its
      duties under this Agreement. The Trustee shall not have any responsibility
      for
      filing any financing or continuation statement in any public office at any
      time
      or to otherwise perfect or maintain the perfection of any security interest
      or
      lien granted to it hereunder.

    

    
      
         

      

      
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    Section
      8.04. Trustee
      May Own Certificates.

    

    The
      Trustee in its individual or any other capacity may become the owner or pledgee
      of Certificates with the same rights as it would have if it were not Trustee
      and
      may transact any banking and trust business with the Seller, the Servicer,
      the
      Depositor or their Affiliates.

    

    Section
      8.05. Seller
      to Pay Trustee Fees and Expenses.

    

    The
      Trustee shall withdraw from the Distribution Account on each Distribution Date
      and pay to itself the Trustee Fee and, to the extent the Interest Remittance
      Amount is at any time insufficient for such purpose, the Seller shall pay such
      fees as reasonable compensation (which shall not be limited by any provision
      of
      law in regard to the compensation of a trustee of an express trust) for all
      services rendered by it in the execution of the trusts hereby created and in
      the
      exercise and performance of any of the powers and duties hereunder of the
      Trustee, and the Seller will pay or reimburse the Trustee upon their request
      for
      all reasonable expenses, disbursements and advances incurred or made by the
      Trustee in accordance with any of the provisions of this Agreement (including
      the reasonable compensation and the expenses and disbursements of its counsel
      and of all persons not regularly in its employ) except any such expense,
      disbursement or advance as may arise from such party’s negligence or bad faith
      or which is the responsibility of Certificateholders or the Trustee hereunder.
      Notwithstanding any other provision of this Agreement, including
      Section 2.03(a) and Section 2.04, to the contrary, the Seller
      covenants and agrees to indemnify the Trustee and its officers, directors,
      employees and agents from, and hold each of them harmless against, any and
      all
      losses, liabilities, damages, claims or expenses incurred in connection with
      (a)
      any legal action relating to this Agreement, the Custodial Agreement, the
      Certificates or incurred in connection with the administration of the Trust,
      other than with respect to a party, any loss, liability or expense incurred
      by
      reason of willful misfeasance, bad faith or negligence of such party in the
      performance of its duties hereunder or by reason of such party’s reckless
      disregard of obligations and duties hereunder and (b) the second paragraph
      of
      Section 2.01. Anything in this Agreement to the contrary notwithstanding, in
      no
      event shall the Trustee be liable for special, indirect or consequential loss
      or
      damage of any kind whatsoever (including but not limited to lost profits),
      even
      if the Trustee has been advised of the likelihood of such loss or damage and
      regardless of the form of action. The Trustee and any director, officer,
      employee or agent of the Trustee shall be indemnified, to the extent not paid
      by
      the Seller pursuant to this Section, by the Trust Fund and held harmless against
      any loss, liability or expense (not including expenses, disbursements and
      advances incurred or made by the Trustee, in the ordinary course of the
      Trustee’s performance in accordance with the provisions of this Agreement)
      incurred by the Trustee or such party arising out of or in connection with
      the
      acceptance or administration of its duties under this Agreement, other than
      any
      loss, liability or expense incurred by reason of willful misfeasance, bad faith
      or negligence in the performance by the Trustee of its duties under this
      Agreement or by reason of the reckless disregard of the Trustee’s obligations
      and duties under this Agreement. This section shall survive termination of
      this
      Agreement or the resignation or removal of any Trustee hereunder.

    

    
      
         

      

      
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    Section
      8.06. Eligibility
      Requirements for Trustee.

    

    The
      Trustee hereunder shall at all times be an entity duly organized and validly
      existing under the laws of the United States of America or any state thereof,
      authorized under such laws to exercise corporate trust powers, having a combined
      capital and surplus of at least $50,000,000 and a minimum long-term debt rating
      of BBB by S&P, a long term debt rating of at least A1 or better by Moody’s
      and a short-term rating of A-1 by S&P, and subject to supervision or
      examination by federal or state authority. If such entity publishes reports
      of
      condition at least annually, pursuant to law or to the requirements of the
      aforesaid supervising or examining authority, then for the purposes of this
      Section 8.06, the combined capital and surplus of such entity shall be
      deemed to be its combined capital and surplus as set forth in its most recent
      report of condition so published. The principal office of the Trustee (other
      than the initial Trustee) shall be in a state with respect to which an Opinion
      of Counsel has been delivered to such Trustee at the time such Trustee is
      appointed Trustee to the effect that the Trust will not be a taxable entity
      under the laws of such state. In case at any time the Trustee shall cease to
      be
      eligible in accordance with the provisions of this Section 8.06, the
      Trustee shall resign immediately in the manner and with the effect specified
      in
      Section 8.07.

    

    Section
      8.07. Resignation
      or Removal of Trustee.

    

    The
      Trustee may at any time resign and be discharged from the trusts hereby created
      by giving written notice thereof to the Depositor, the Servicer and each Rating
      Agency. Upon receiving such notice of resignation, the Depositor shall promptly
      appoint a successor Trustee by written instrument, in duplicate, one copy of
      which instrument shall be delivered to the resigning Trustee and one copy to
      the
      successor Trustee. If no successor Trustee shall have been so appointed and
      having accepted appointment within 30 days after the giving of such notice
      of
      resignation, the resigning Trustee may petition any court of competent
      jurisdiction for the appointment of a successor Trustee.

    

    If
      at any
      time the Trustee shall cease to be eligible in accordance with the provisions
      of
      Section 8.06 and shall fail to resign after written request therefor by the
      Depositor, or if at any time the Trustee shall be legally unable to act, or
      shall be adjudged a bankrupt or insolvent, or a receiver of the Trustee or
      of
      its property shall be appointed, or any public officer shall take charge or
      control of the Trustee or of its property or affairs for the purpose of
      rehabilitation, conservation or liquidation, then the Depositor may remove
      the
      Trustee. If the Depositor or the Servicer removes the Trustee under the
      authority of the immediately preceding sentence, the Depositor shall promptly
      appoint a successor Trustee by written instrument, in duplicate, one copy of
      which instrument shall be delivered to the Trustee so removed and one copy
      to
      the successor Trustee.

    

    
      
         

      

      
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    The
      Majority Certificateholders may at any time remove the Trustee by written
      instrument or instruments delivered to the Servicer, the Depositor and the
      Trustee; the Depositor shall thereupon use its best efforts to appoint a
      successor Trustee in accordance with this Section.

    

    Any
      resignation or removal of the Trustee and appointment of a successor Trustee
      pursuant to any of the provisions of this Section 8.07 shall not become
      effective until acceptance of appointment by the successor Trustee as provided
      in Section 8.08.

    

    Section
      8.08. Successor
      Trustee.

    

    Any
      successor Trustee appointed as provided in Section 8.07 shall execute,
      acknowledge and deliver to the Depositor, the Rating Agencies, the Servicer
      and
      to its predecessor Trustee an instrument accepting such appointment hereunder,
      and thereupon the resignation or removal of the predecessor Trustee shall become
      effective, and such successor Trustee, without any further act, deed or
      conveyance, shall become fully vested with all the rights, powers, duties and
      obligations of its predecessor hereunder, with like effect as if originally
      named as Trustee. The Depositor, the Servicer and the predecessor Trustee shall
      execute and deliver such instruments and do such other things as may reasonably
      be required for fully and certainly vesting and confirming in the successor
      Trustee all such rights, powers, duties and obligations.

    

    No
      successor Trustee shall accept appointment as provided in this Section 8.08
      unless at the time of such acceptance such successor Trustee shall be eligible
      under the provisions of Section 8.06 and the appointment of such successor
      Trustee shall not result in a downgrading of the Offered Certificates or Class
      B-1 Certificates by either Rating Agency, as evidenced by a letter from each
      Rating Agency.

    

    Upon
      acceptance of appointment by a successor Trustee as provided in this
      Section 8.08, the successor Trustee shall mail notice of the appointment of
      a successor Trustee hereunder to all Holders of Certificates at their addresses
      as shown in the Certificate Register and to each Rating Agency.

    

    Section
      8.09. Merger
      or Consolidation of Trustee.

    

    Any
      entity into which the Trustee may be merged or converted or with which it may
      be
      consolidated, or any entity resulting from any merger, conversion or
      consolidation to which the Trustee shall be a party, or any entity succeeding
      to
      the business of the Trustee, shall be the successor of the Trustee hereunder,
      provided such entity shall be eligible under the provisions of Section 8.06
      and 8.08, without the execution or filing of any paper or any further act on
      the
      part of any of the parties hereto, anything herein to the contrary
      notwithstanding.

    

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

    

    Notwithstanding
      any other provisions of this Agreement, at any time, for the purpose of meeting
      any legal requirements of any jurisdiction in which any part of the Trust or
      any
      Mortgaged Property may at the time be located, the Depositor and the Trustee
      acting jointly shall have the power and shall execute and deliver all
      instruments to appoint one or more Persons approved by the Trustee to act as
      co-trustee or co-trustees, jointly with the Trustee, or separate trustee or
      separate trustees, of all or any part of the Trust, and to vest in such Person
      or Persons, in such capacity and for the benefit of the Certificateholders,
      such
      title to the Trust, or any part thereof, and, subject to the other provisions
      of
      this Section 8.10, such powers, duties, obligations, rights and trusts as
      the Servicer and the Trustee may consider necessary or desirable. Any such
      co-trustee or separate trustee shall be subject to the written approval of
      the
      Servicer. If the Servicer shall not have joined in such appointment within
      15
      days after the receipt by it of a request so to do, or in the case a Servicer
      Event of Termination shall have occurred and be continuing, 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 8.06, and no notice to Certificateholders of the
      appointment of any co-trustee or separate trustee shall be required under
      Section 8.08. The Servicer shall be responsible for the fees of any
      co-trustee or separate trustee appointed hereunder.

    

    
      
         

      

      
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    Every
      separate trustee and co-trustee shall, to the extent permitted by law, be
      appointed and act subject to the following provisions and
      conditions:

    

    (i) all
      rights, powers, duties and obligations conferred or imposed upon the Trustee
      shall be conferred or imposed upon and exercised or performed by the Trustee
      and
      such separate trustee or co-trustee jointly (it being understood that such
      separate trustee or co-trustee is not authorized to act separately without
      the
      Trustee joining in such act), except to the extent that under any law of any
      jurisdiction in which any particular act or acts are to be performed (whether
      as
      Trustee hereunder or as successor to the Servicer hereunder), the Trustee shall
      be incompetent or unqualified to perform such act or acts, in which event such
      rights, powers, duties and obligations (including the holding of title to the
      Trust or any portion thereof in any such jurisdiction) shall be exercised and
      performed singly by such separate trustee or co-trustee, but solely at the
      direction of the Trustee;

    

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

    

    (iii) the
      Servicer and the Trustee, acting jointly may at any time accept the resignation
      of or remove any separate trustee or co-trustee except that following the
      occurrence of a Servicer Event of Termination, the Trustee acting alone may
      accept the resignation or remove any separate trustee or
      co-trustee.

    

    Any
      notice, request or other writing given to the Trustee shall be deemed to have
      been given to each of the then separate trustees and co-trustees, as effectively
      as if given to each of them. Every instrument appointing any separate trustee
      or
      co-trustee shall refer to this Agreement and the conditions of this
      Article VIII. Each separate trustee and co-trustee, upon its acceptance of
      the trusts conferred, shall be vested with the estates or property specified
      in
      its instrument of appointment, either jointly with the Trustee or separately,
      as
      may be provided therein, subject to all the provisions of this Agreement,
      specifically including every provision of this Agreement relating to the conduct
      of, affecting the liability of, or affording protection to, the Trustee. Every
      such instrument shall be filed with the Trustee and a copy thereof given to
      the
      Depositor, the Rating Agencies and the Servicer.

    

    
      
         

      

      
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    Any
      separate trustee or co-trustee may, at any time, constitute the Trustee, its
      agent or attorney-in-fact, with full power and authority, to the extent not
      prohibited by law, to do any lawful act under or in respect of this Agreement
      on
      its behalf and in its name. If any separate trustee or co-trustee shall die,
      become incapable of acting, resign or be removed, all of its estates,
      properties, rights, remedies and trusts shall vest in and be exercised by the
      Trustee, to the extent permitted by law, without the appointment of a new or
      successor Trustee.

    

    Section
      8.11. Limitation
      of Liability.

    

    The
      Certificates are executed by the Trustee, not in its individual capacity but
      solely as Trustee of the Trust, in the exercise of the powers and authority
      conferred and vested in it by this Agreement. Each of the undertakings and
      agreements made on the part of the Trustee in the Certificates is made and
      intended not as a personal undertaking or agreement by the Trustee but is made
      and intended for the purpose of binding only the Trust.

    

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

    

    (a) All
      rights of action and claims under this Agreement or the Certificates may be
      prosecuted and enforced by the Trustee without the possession of any of the
      Certificates or the production thereof in any proceeding relating thereto,
      and
      such proceeding instituted by the Trustee shall be brought in its own name
      or in
      its capacity as Trustee for the benefit of all Holders of such Certificates,
      subject to the provisions of this Agreement. Any recovery of judgment shall,
      after provision for the payment of the reasonable compensation, expenses,
      disbursement and advances of the Trustee, its agents and counsel, be for the
      ratable benefit of the Certificateholders in respect of which such judgment
      has
      been recovered.

    

    (b) The
      Trustee shall afford the Seller, the Depositor, the Servicer and each
      Certificateholder upon reasonable notice during normal business hours, access
      to
      all records maintained by the Trustee in respect of its duties hereunder and
      access to officers of the Trustee responsible for performing such duties. The
      Trustee shall cooperate fully with the Seller, the Servicer, the Depositor
      and
      such Certificateholder and shall make available to the Seller, the Servicer,
      the
      Depositor and such Certificateholder for review and copying at the expense
      of
      the party requesting such copies, such books, documents or records as may be
      requested with respect to the Trustee’s duties hereunder. The Seller, the
      Depositor, the Servicer and the Certificateholders shall not have any
      responsibility or liability for any action or failure to act by the Trustee
      and
      are not obligated to supervise the performance of the Trustee under this
      Agreement or otherwise.

    

    Section
      8.13. Suits
      for Enforcement.

    

    In
      case a
      Servicer Event of Termination or other default by the Servicer or the Seller
      hereunder shall occur and be continuing, the Trustee may proceed to protect
      and
      enforce its rights and the rights of the Certificateholders under this Agreement
      by a suit, action or proceeding in equity or at law or otherwise, whether for
      the specific performance of any covenant or agreement contained in this
      Agreement or in aid of the execution of any power granted in this Agreement
      or
      for the enforcement of any other legal, equitable or other remedy, as the
      Trustee, being advised by counsel, and subject to the foregoing, shall deem
      most
      effectual to protect and enforce any of the rights of the Trustee and the
      Certificateholders.

    

    
      
         

      

      
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    Section
      8.14. Waiver
      of Bond Requirement.

    

    The
      Trustee shall be relieved of, and each Certificateholder hereby waives, any
      requirement of any jurisdiction in which the Trust, or any part thereof, may
      be
      located that the Trustee post a bond or other surety with any court, agency
      or
      body whatsoever.

    

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

    

    The
      Trustee shall be relieved of, and each Certificateholder hereby waives, any
      requirement of any jurisdiction in which the Trust, or any part thereof, may
      be
      located that the Trustee file any inventory, accounting or appraisal of the
      Trust with any court, agency or body at any time or in any manner
      whatsoever.

    

    ARTICLE
      IX

    

    REMIC
      ADMINISTRATION

    

    Section
      9.01. REMIC
      Administration.

    

    (a) The
      Trustee shall make or cause to be made REMIC elections for each of REMIC 1,
      REMIC 2, REMIC 3, REMIC A, REMIC B, REMIC C and REMIC D as set forth in the
      Preliminary Statement on Forms 1066 or other appropriate federal tax or
      information return for the taxable year ending on the last day of the calendar
      year in which the Certificates are issued and shall apply for a taxpayer ID
      number for each legal entity created under this Agreement. The regular interests
      and residual interest in each REMIC shall be as designated in the Preliminary
      Statement.

    

    (b) The
      Closing Date is hereby designated as the “Startup Day” of each REMIC within the
      meaning of section 860G(a)(9) of the Code.

    

    (c) The
      Servicer shall pay any and all tax related expenses (not including taxes) of
      each REMIC, including but not limited to any professional fees or expenses
      related to audits or any administrative or judicial proceedings with respect
      to
      such REMIC that involve the Internal Revenue Service or state tax authorities,
      but only to the extent that (i) such expenses are ordinary or routine
      expenses, including expenses of a routine audit but not expenses of litigation
      (except as described in (ii)); or (ii) such expenses or liabilities
      (including taxes and penalties) are attributable to the negligence or willful
      misconduct of the Servicer in fulfilling its duties hereunder. The Servicer
      shall be entitled to reimbursement of expenses to the extent provided in
      clause (i) above from the Collection Account.

    

    (d) The
      Trustee shall prepare or cause to be prepared, sign and file or cause to be
      filed, each REMIC’s federal and state tax and information returns as such
      REMIC’s direct representative. The expenses of preparing and filing such returns
      shall be borne by the Trustee.

    

    
      
         

      

      
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    (e) The
      Holder of the Residual Certificates with respect to the Residual Interest in
      the
      related REMIC holding the largest Percentage Interest shall be the “tax matters
      person” as defined in the REMIC Provisions (the “Tax
      Matters Person”)
      with
      respect to the applicable REMICs, and the Trustee is irrevocably designated
      as
      and shall act as attorney-in-fact and agent for such Tax Matters Person for
      each
      REMIC. The Trustee, as agent for the Tax Matters Person, shall perform, on
      behalf of each REMIC, all reporting and other tax compliance duties that are
      the
      responsibility of such REMIC under the Code, the REMIC Provisions, or other
      compliance guidance issued by the Internal Revenue Service or any state or
      local
      taxing authority. Among its other duties, if required by the Code, the REMIC
      Provisions, or other such guidance, the Trustee, as agent for the Tax Matters
      Person, shall provide (i) to the Treasury or other governmental authority
      such information as is necessary for the application of any tax relating to
      the
      transfer of a Residual Certificate to any disqualified person or organization
      and (ii) to the Certificateholders such information or reports as are
      required by the Code or REMIC Provisions.

    

    (f) The
      Trustee, the Servicer, and the Holders of Certificates shall take any action
      or
      cause any REMIC to take any action necessary to create or maintain the status
      of
      such REMIC as a REMIC under the REMIC Provisions and shall assist each other
      as
      necessary to create or maintain such status within the scope of their duties
      as
      described herein. Neither the Trustee, the Servicer, nor the Holder of any
      Residual Certificate shall take any action or cause any REMIC to take any action
      or fail to take (or fail to cause to be taken) any action that, under the REMIC
      Provisions, if taken or not taken, as the case may be, could (i) endanger
      the status of such REMIC as a REMIC or (ii) result in the imposition of a
      tax upon such REMIC (including but not limited to the tax on prohibited
      transactions as defined in Code Section 860F(a)(2) and the tax on
      prohibited contributions set forth on Section 860G(d) of the Code) (either
      such event, an “Adverse
      REMIC Event”)
      unless
      such action or failure to take such action is expressly permitted under the
      terms of this Agreement or the Trustee and the Servicer have received an Opinion
      of Counsel (at the expense of the party seeking to take such action) to the
      effect that the contemplated action will not endanger such status or result
      in
      the imposition of such a tax. In addition, prior to taking any action with
      respect to any REMIC or the assets therein, or causing such REMIC to take any
      action, which is not expressly permitted under the terms of this Agreement,
      any
      Holder of a Residual Certificate will consult with the Trustee and the Servicer,
      or their respective designees, in writing, with respect to whether such action
      could cause an Adverse REMIC Event to occur with respect to such REMIC, and
      no
      such Person shall take any such action or cause such REMIC to take any such
      action as to which the Trustee or the Servicer has advised it in writing that
      an
      Adverse REMIC Event could occur.

    

    (g) Each
      Holder of a Residual Certificate shall pay when due its
      pro
      rata share
      of
      any and all taxes imposed on any related REMIC by federal or state governmental
      authorities. To the extent that such REMIC taxes are not paid by Residual
      Certificateholders, the Trustee shall pay any remaining REMIC taxes out of
      current or future amounts otherwise distributable to the Holder of the Residual
      Certificate in respect of the related REMIC or, if no such amounts are
      available, out of other amounts held in the Collection Account, and shall reduce
      amounts otherwise payable to Holders of the REMIC Regular Interests or the
      Certificates, as the case may be.

    

    
      
         

      

      
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    (h) The
      Trustee, shall, for federal income tax purposes, maintain or cause to be
      maintained books and records with respect to each REMIC on a calendar year
      and
      on an accrual basis.

    

    (i) No
      additional contributions of assets shall be made to any REMIC, except as
      expressly provided in this Agreement with respect to Eligible Substitute
      Mortgage Loans.

    

    (j) Neither
      the Trustee nor the Servicer shall enter into any arrangement by which any
      REMIC
      will receive a fee or other compensation for services.

    

    (k) On
      or
      before April 15 of each calendar year beginning in 2008, the Servicer shall
      deliver to the Trustee and each Rating Agency an Officer’s Certificate stating
      the Servicer’s compliance with the provisions of this
      Section 9.01.

    

    (l) In
      order
      to enable the Trustee to perform its duties as set forth herein, the Depositor
      shall provide, or cause to be provided, to the Trustee within 10 days of written
      request all information or data that the Trustee requests and determines to
      be
      relevant for tax purposes to the valuations and offering prices of the
      Certificates, including, without limitation, the price, yield, prepayment
      assumption and projected cash flows of the Certificates and the Mortgage Loans;
      provided,
      however,
      that
      the Trustee shall not be required to prepare and file partnership tax returns
      on
      behalf of the Supplemental Interest Trust unless it receives written
      notification recognizing the creation of a partnership for federal income tax
      purposes due to the transfer and additional reasonable compenation, including
      any third party accounting fees, for the preparation of such filings or for
      any
      future revisions to any partneship agreement. Thereafter, the Depositor shall
      provide to the Trustee promptly upon written request therefor, any such
      additional information or data that the Trustee may, from time to time, request
      in order to enable the Trustee to perform its duties as set forth
      herein.

    

    Section
      9.02. Prohibited
      Transactions and Activities.

    

    Neither
      the Seller, the Depositor, the Servicer nor the Trustee shall sell, dispose
      of,
      or substitute for any of the Mortgage Loans, except in a disposition pursuant
      to
      (i) the foreclosure of a Mortgage Loan, (ii) the bankruptcy of the
      Trust Fund, (iii) the termination of any REMIC pursuant to Article X of
      this Agreement, (iv) a substitution pursuant to Article II of this
      Agreement or (v) a repurchase of Mortgage Loans pursuant to Article II
      of this Agreement, nor acquire any assets for any REMIC constituting part of
      the
      Trust Fund, nor sell or dispose of any investments in the Distribution Account
      for gain, nor accept any contributions to any REMIC constituting part of the
      Trust Fund after the Closing Date, unless it has received an Opinion of Counsel
      (at the expense of the party causing such sale, disposition, or substitution)
      that such disposition, acquisition, substitution, or acceptance will not
      (a) affect adversely the status of such REMIC as a REMIC or of the
      interests therein other than the Residual Certificates as the regular interests
      therein, (b) affect the distribution of interest or principal on the
      Certificates, (c) result in the encumbrance of the assets transferred or
      assigned to the Trust Fund (except pursuant to the provisions of this Agreement)
      or (d) cause such REMIC to be subject to a tax on prohibited transactions
      or prohibited contributions pursuant to the REMIC Provisions.

    

    
      
         

      

      
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    Section
      9.03. Indemnification
      with Respect to Certain Taxes and Loss of REMIC Status.

    

    In
      the
      event that any REMIC formed hereunder fails to qualify as a REMIC, loses its
      status as a REMIC, or incurs federal, state or local taxes as a result of a
      prohibited transaction or prohibited contribution under the REMIC Provisions
      due
      to the negligent performance by the Servicer of its duties and obligations
      set
      forth herein, the Servicer shall indemnify the Holder of the related Residual
      Certificate against any and all losses, claims, damages, liabilities or expenses
      (“Losses”)
      resulting from such negligence; provided,
      however,
      that
      the Servicer shall not be liable for any such Losses attributable to the action
      or inaction of the Trustee, the Depositor or the Holder of such Residual
      Certificate, as applicable, nor for any such Losses resulting from
      misinformation provided by the Holder of such Residual Certificate on which
      the
      Servicer has relied. The foregoing shall not be deemed to limit or restrict
      the
      rights and remedies of the Holder of such Residual Certificate now or hereafter
      existing at law or in equity. Notwithstanding the foregoing, however, in no
      event shall the Servicer have any liability (1) for any action or omission
      that is taken in accordance with and in compliance with the express terms of,
      or
      which is expressly permitted by the terms of, this Agreement, (2) for any
      Losses other than arising out of a negligent performance by the Servicer of
      its
      duties and obligations set forth herein, and (3) for any special or
      consequential damages to Certificateholders (in addition to payment of principal
      and interest on the Certificates).

    

    Section
      9.04. REO
      Property.

    

    (a) Subject
      to compliance with applicable laws and regulations as shall at any time be
      in
      force, and notwithstanding any other provision of this Agreement, the Servicer,
      acting on behalf of the Trust hereunder, shall not rent, lease, or otherwise
      earn income on behalf of any REMIC constituting part of the Trust Fund with
      respect to any REO Property which might cause such REO Property to fail to
      qualify as “foreclosure” property within the meaning of section 860G(a)(8)
      of the Code or result in the receipt by any REMIC constituting part of the
      Trust
      Fund of any “income from non-permitted assets” within the meaning of
      section 860F(a)(2) of the Code or any “net income from foreclosure
      property” which is subject to tax under the REMIC Provisions unless the Servicer
      has advised, or has caused the applicable Servicer to advise, the Trustee in
      writing to the effect that, under the REMIC Provisions, such action would not
      adversely affect the status of any REMIC constituting part of the Trust Fund
      as
      a REMIC and any income generated for such REMIC by the REO Property would not
      result in the imposition of a tax upon such REMIC.

    

    (b) The
      Servicer shall make reasonable efforts to sell any REO Property for its fair
      market value. In any event, however, the Servicer shall dispose of any REO
      Property before the close of the third calendar year beginning after the year
      of
      its acquisition by the Trust Fund unless the Servicer has received a grant
      of
      extension from the Internal Revenue Service to the effect that, under the REMIC
      Provisions and any relevant proposed legislation and under applicable state
      law,
      any REMIC constituting part of the Trust Fund may hold REO Property for a longer
      period without adversely affecting its REMIC status or causing the imposition
      of
      a Federal or state tax upon any REMIC. If the Servicer has received such an
      extension, then the Servicer shall continue to attempt to sell the REO Property
      for its fair market value as determined in good faith by the Servicer for such
      longer period as such extension permits (the “Extended
      Period”).
      If
      the Servicer has not received such an extension and the Servicer is unable
      to
      sell the REO Property within 33 months after its acquisition by the Trust Fund
      or if the Servicer has received such an extension, and the Servicer is unable
      to
      sell the REO Property within the period ending three months before the close
      of
      the Extended Period, the Servicer shall, before the end of the applicable
      period, (i) purchase such REO Property at a price equal to the REO
      Property’s fair market value as determined in good faith by the Servicer or
      (ii) auction the REO Property to the highest bidder (which may be the
      Servicer) in an auction reasonably designed to produce a fair price prior to
      the
      expiration of the applicable period.

    

    
      
         

      

      
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    ARTICLE
      X

    

    TERMINATION

    

    Section
      10.01. Termination.

    

    (a) The
      respective obligations and responsibilities of the Seller, the Servicer, the
      Depositor, the Trustee and the Certificate Registrar created hereby (other
      than
      the obligation of the Trustee to make certain payments to Certificateholders
      after the final Distribution Date and the obligation of the Servicer to send
      certain notices as hereinafter set forth) shall terminate upon notice to the
      Trustee upon the earliest of (i) the Distribution Date on which the
      Certificate Principal Balance of each Class of Certificates has been reduced
      to
      zero, (ii) the final payment or other liquidation of the last Mortgage Loan
      in the Trust Fund, and (iii) the optional purchase by the Servicer of the
      Mortgage Loans as described below. Notwithstanding the foregoing, in no event
      shall the trust created hereby continue beyond the expiration of 21 years from
      the death of the last survivor of the descendants of Joseph P. Kennedy, the
      late
      ambassador of the United States to the Court of St. James, living on the date
      hereof.

    

    The
      Servicer (or an Affiliate) may, at its option, terminate the Mortgage Loans
      in
      the Trust Fund and retire the Certificates on the next succeeding Distribution
      Date upon which the current Pool Balance is 10% or less than the Pool Balance
      of
      the Mortgage Loans as of the Cut-off Date by purchasing all of the outstanding
      (i) Mortgage Loans in the Trust Fund at a price equal to the sum of the
      outstanding Principal Balance of the Mortgage Loans and except to the extent
      previously advanced by the Servicer, accrued and unpaid interest thereon at
      the
      weighted average of the Mortgage Interest Rates through the end of the
      Collection Period preceding the final Distribution Date plus unreimbursed
      Servicing Advances, Advances and any unpaid Servicing Fees and Excess Servicing
      Fees allocable to such Mortgage Loans, (ii) REO Properties in the Trust Fund
      at
      a price equal to their fair market value as determined in good faith by the
      Servicer and (iii) any Swap Termination Payment owed to the Swap Provider
      pursuant to the Swap Agreement (the “Termination
      Price”).
      Notwithstanding the foregoing, the Servicer (or an Affiliate) may not exercise
      its optional purchase right unless any Reimbursement Amount owed to the Trust
      pursuant to Section 2.03 hereof has been paid.

    

    In
      connection with any such purchase pursuant to the preceding paragraph, the
      Servicer shall deliver to the Trustee for deposit in the Distribution Account
      all amounts then on deposit in the Collection Account (less amounts permitted
      to
      be withdrawn by the Servicer pursuant to Section 3.07), which deposit shall
      be deemed to have occurred immediately following such purchase.

    

    
      
         

      

      
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    Any
      such
      purchase shall be accomplished by delivery to the Trustee for deposit into
      the
      Distribution Account as part of the Interest Remittance Amount and the Principal
      Distribution Amount on the Determination Date before such Distribution Date
      of
      the Termination Price.

    

    (b) Notice
      of
      any termination, specifying the Distribution Date (which shall be a date that
      would otherwise be a Distribution Date) upon which the Certificateholders may
      surrender their Certificates to the Trustee for payment of the final
      distribution and cancellation, shall be given promptly by the Trustee upon
      the
      Trustee receiving notice of such date from the Servicer, by letter to the
      Certificateholders mailed not earlier than the 15th day of the month preceding
      the month of such final distribution and not later than the 15th day of the
      month of such final distribution specifying (1) the Distribution Date upon
      which final distribution of the Certificates will be made upon presentation
      and
      surrender of such Certificates at the office or agency of the Trustee therein
      designated, (2) the amount of any such final distribution and (3) that
      the Record Date otherwise applicable to such Distribution Date is not
      applicable, distributions being made only upon presentation and surrender of
      the
      Certificates at the office or agency of the Trustee therein specified. Not
      less
      than five (5) Business Days prior to such Determination Date relating to such
      Distribution Date, the Trustee shall notify the Seller of the amount of any
      unpaid Reimbursement Amount owed to the Trust.

    

    (c) Upon
      presentation and surrender of the Certificates, the Trustee shall cause to
      be
      distributed to the Holders of the Certificates on the Distribution Date for
      such
      final distribution, in proportion to the Percentage Interests of their
      respective Class and to the extent that funds are available for such purpose,
      an
      amount equal to the amount required to be distributed to such Holders in
      accordance with the provisions of Sections 4.01 and 4.02 for such
      Distribution Date.

    

    (d) In
      the
      event that all Certificateholders shall not surrender their Certificates for
      final payment and cancellation on or before such final Distribution Date, the
      Trustee shall promptly following such date cause all funds in the Distribution
      Account not distributed in final distribution to Certificateholders to be
      withdrawn therefrom and credited to the remaining Certificateholders by
      depositing such funds in a separate escrow account for the benefit of such
      Certificateholders, and the Servicer (if the Servicer has exercised its right
      to
      purchase the Mortgage Loans) or the Trustee (in any other case) shall give
      a
      second written notice to the remaining Certificateholders, to surrender their
      Certificates for cancellation and receive the final distribution with respect
      thereto. If within nine months after the second notice, all the Certificates
      shall not have been surrendered for cancellation, the Class R
      Certificateholders shall be entitled to all unclaimed funds and other assets
      which remain subject hereto (except with respect to the Class B-1, Class CE-1,
      Class CE-2 and Class P Certificates and the assets of REMIC A, REMIC B, REMIC
      C
      and REMIC D) and the Trustee upon transfer of such funds shall be discharged
      of
      any responsibility for such funds, and such Certificateholders shall look to
      the
      Class R Certificateholders for payment. The Class R-X Certificateholders
      shall be entitled to all unclaimed funds and other assets with respect to REMIC
      A, REMIC B, REMIC C and REMIC D. Holders of the Class CE Certificates and the
      Class B-1 Certificates shall be entitled to look only to the Class R-X
      Certificateholder (in respect of the Class R-X Interest) for
      payment.

    

    
      
         

      

      
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    Section
      10.02. Additional
      Termination Requirements.

    

    (a) In
      the
      event that the Servicer exercises its purchase option as provided in
      Section 10.01, the Trust shall be terminated in accordance with the
      following additional requirements, unless the Trustee shall have been furnished
      with an Opinion of Counsel to the effect that the failure of the Trust to comply
      with the requirements of this Section will not (i) result in the imposition
      of taxes on “prohibited transactions” of the Trust as defined in Section 860F of
      the Code or (ii) cause any REMIC constituting part of the Trust Fund to
      fail to qualify as a REMIC at any time that any Certificates are
      outstanding:

    

    (i) The
      Trustee shall designate a date within 90 days prior to the final Distribution
      Date as the date of adoption of plans of complete liquidation of each of REMIC
      1, REMIC 2, REMIC 3, REMIC A, REMIC B, REMIC C and REMIC D and shall specify
      such date in the final federal income tax return of each REMIC;

    

    (ii) After
      the
      date of adoption of such plans of complete liquidation and at or prior to the
      final Distribution Date, the Trustee shall sell all of the assets of the Trust
      to the Servicer for cash; and

    

    (iii) At
      the
      time of the making of the final payment on the Certificates, the Trustee shall
      distribute or credit, or cause to be distributed or credited in the following
      order of priority (A) (i) to the Holders of each of the Class A-1, Class
      A-2 and Class A-3, pro
      rata
      and (ii)
      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, Class M-9 and Class B-1 Certificates, the related Certificate
      Principal Balance, as applicable, plus one month’s interest thereon at the
      applicable Certificate Interest Rate, (B) to the Class CE-1 Certificates in
      respect of the Class CE Interest, the amount of any remaining Class CE
      Distributable Amount not previously distributed thereon, (C) to the
      remaining REMIC Regular Interests the amounts allocable thereto pursuant to
      Section 4.08 and (D) to the Class R and Class R-X Certificateholders,
      all cash on hand in respect of the related REMICs after such payment (other
      than
      cash retained to meet claims) and the Trust shall terminate at such
      time.

    

    (b) By
      their
      acceptance of Certificates, the Holders thereof hereby appoint the Trustee
      as
      their attorney in fact to: (i) designate such date of adoption of plans of
      complete liquidation and (ii) to take such other action in connection
      therewith as may be reasonably required to carry out such plans of complete
      liquidation all in accordance with the terms hereof.

    

    ARTICLE
      XI

    

    MISCELLANEOUS
      PROVISIONS

    

    Section
      11.01. Amendment.

    

    This
      Agreement may be amended from time to time by the Seller, the Depositor, the
      Servicer and the Trustee; and without the consent of the Certificateholders,
      (i) to cure any ambiguity, (ii) to correct or supplement any
      provisions herein which may be defective or inconsistent with any other
      provisions herein, (iii) to comply with the provisions of 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; provided,
      however,
      that
      any such action listed in clause (i) through (iv) above shall not
      adversely affect in any respect the interests of any Certificateholder, as
      evidenced by (i) notice in writing to the Depositor, the Servicer and the
      Trustee from the Rating Agencies that such action will not result in the
      reduction or withdrawal of the rating of any outstanding Class of Certificates
      with respect to which it is a Rating Agency, or (ii) an Opinion of Counsel
      delivered to the Servicer and the Trustee (at the expense of the Person seeking
      such amendment).

    

    
      
         

      

      
        162

        
          

        

      

      
         

      

    

    In
      addition, this Agreement may be amended from time to time by Seller, the
      Depositor, the Servicer and the Trustee, with the consent of the Majority
      Certificateholders for the purpose of adding any provisions to or changing
      in
      any manner or eliminating any of the provisions of this Agreement or of
      modifying in any manner the rights of the Holders of Certificates; provided,
      however,
      that no
      such amendment or waiver shall (x) reduce in any manner the amount of, or
      delay the timing of, payments on the Certificates which are required to be
      made
      on any Certificate without the consent of the Holder of such Certificate,
      (y) adversely affect in any material respect the interests of the Holders
      of any Class of Certificates in a manner other than as described in
      clause (x) above, without the consent of the Holders of Certificates of
      such Class evidencing at least a 66 2/3% Percentage Interest in such Class,
      or
      (z) reduce the percentage of Voting Rights required by
      clause (y) above without the consent of the Holders of all
      Certificates of such Class then outstanding. Upon approval of an amendment,
      a
      copy of such amendment shall be sent to the Rating Agencies. Prior to the
      execution of any amendment to this Agreement, the Trustee shall be entitled
      to
      receive and rely upon an Opinion of Counsel (at the expense of the Person
      seeking such amendment) stating that the execution of such amendment is
      authorized or permitted by this Agreement. The Trustee may, but shall not be
      obligated to, enter into any such amendment which affects the Trustee’s own
      rights, duties or immunities under this Agreement.

    

    Notwithstanding
      any provision of this Agreement to the contrary, the Trustee shall not consent
      to any amendment to this Agreement unless it shall have first received an
      Opinion of Counsel, delivered by (and at the expense of) the Person seeking
      such
      Amendment, to the effect that such amendment will not result in the imposition
      of a tax on any REMIC constituting part of the Trust Fund pursuant to the REMIC
      Provisions or cause any REMIC constituting part of the Trust to fail to qualify
      as a REMIC at any time that any Certificates are outstanding and that the
      amendment is being made in accordance with the terms hereof.

    

    Promptly
      after the execution of any such amendment the Trustee shall furnish, at the
      expense of the Person that requested the amendment if such Person is the Seller
      or the Servicer (but in no event at the expense of the Trustee), otherwise
      at
      the expense of the Trust, a copy of such amendment and the Opinion of Counsel
      referred to in the immediately preceding paragraph to the Servicer and each
      Rating Agency.

    

    It
      shall
      not be necessary for the consent of Certificateholders under this
      Section 11.01 to approve the particular form of any proposed amendment;
      instead it shall be sufficient if such consent shall approve the substance
      thereof. The manner of obtaining such consents and of evidencing the
      authorization of the execution thereof by Certificateholders shall be subject
      to
      such reasonable regulations as the Trustee may prescribe.

    

    
      
         

      

      
        163

        
          

        

      

      
         

      

    

    Notwithstanding
      the foregoing, any amendment to this Agreement shall require the prior written
      consent of the Swap Provider if such amendment materially and adversely affects
      the rights or interests of the Swap Provider, and such consent shall not be
      unreasonably withheld or delayed.

    

    Section
      11.02. 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 Servicer at the expense
      of
      the Trust, but only upon direction of Certificateholders, accompanied by an
      Opinion of Counsel to the effect that such recordation materially and
      beneficially affects the interests of the Certificateholders.

    

    For
      the
      purpose of facilitating the recordation of this Agreement as herein provided
      and
      for other purposes, this Agreement may be executed simultaneously in any number
      of counterparts, each of which counterparts shall be deemed to be an original,
      and such counterparts shall together constitute but one and the same
      instrument.

    

    Section
      11.03. Limitation
      on Rights of Certificateholders.

    

    The
      death
      or incapacity of any Certificateholder shall not (i) operate to terminate
      this Agreement or the Trust, (ii) entitle such Certificateholder’s legal
      representatives or heirs to claim an accounting or to take any action or
      proceeding in any court for a partition or winding up of the Trust, or
      (iii) otherwise affect the rights, obligations and liabilities of the
      parties hereto or any of them.

    

    Except
      as
      expressly provided for herein, no Certificateholder shall have any right to
      vote
      or in any manner otherwise control the operation and management of the Trust,
      or
      the obligations of the parties hereto, nor shall anything herein set forth
      or
      contained in the terms of the Certificates be construed so as to constitute
      the
      Certificateholders from time to time as partners or members of an association;
      nor shall any Certificateholder be under any liability to any third person
      by
      reason of any action taken by the parties to this Agreement pursuant to any
      provision hereof.

    

    No
      Certificateholder shall have any right by virtue of any provision of this
      Agreement to institute any suit, action or proceeding in equity or at law upon
      or under or with respect to this Agreement, unless such Holder previously shall
      have given to the Trustee a written notice of default and of the continuance
      thereof, as herein 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 whatever by virtue of any provision of this
      Agreement to affect, disturb or prejudice the rights of the Holders of any
      other
      of such Certificates, or to obtain or seek to obtain priority over or preference
      to any other such Holder, which priority or preference is not otherwise provided
      for herein, or to enforce any right under this Agreement, except in the manner
      herein provided and for the equal, ratable and common benefit of all
      Certificateholders. For the protection and enforcement of the provisions of
      this
      Section 11.03 each and every Certificateholder and the Trustee shall be
      entitled to such relief as can be given either at law or in equity.

    

    
      
         

      

      
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    Section
      11.04. Governing
      Law; Jurisdiction.

    

    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. With respect to any claim arising
      out
      of this Agreement, each party irrevocably submits to the exclusive jurisdiction
      of the courts of the State of New York and the United States District Court
      located in the Borough of Manhattan in The City of New York, and each party
      irrevocably waives any objection which it may have at any time to the laying
      of
      venue of any suit, action or proceeding arising out of or relating hereto
      brought in any such courts, irrevocably waives any claim that any such suit,
      action or proceeding brought in any such court has been brought in any
      inconvenient forum and further irrevocably waives the right to object, with
      respect to such claim, suit, action or proceeding brought in any such court,
      that such court does not have jurisdiction over such party, provided that
      service of process has been made by any lawful means.

    

    Section
      11.05. Notices.

    

    All
      directions, demands and notices hereunder shall be in writing and shall be
      deemed to have been duly given if personally delivered at or mailed by first
      class mail, postage prepaid, or by express delivery service, to (a) in the
      case of the Seller, Credit-Based Asset Servicing and Securitization LLC, 335
      Madison Avenue, 19th Floor, New York, New York 10017, Attention: Director -
      Mortgage Finance (telecopy number (212) 850-7760), or such other address or
      telecopy number as may hereafter be furnished to the Depositor and the Trustee
      in writing by the Seller, (b) in the case of the Trustee, LaSalle Bank
      National Association, 135
      South LaSalle Street, Suite 1511, Chicago, Illinois, 60603. Attention: Global
      Securities and Trust Services — C-BASS 2007-CB5,
      or such
      other address as may hereafter be furnished to the Depositor, the Seller and
      the
      Servicer in writing by the Trustee, (c)  in the case of the Depositor,
      Asset Backed Funding Corporation, 214 North Tryon Street, Charlotte, North
      Carolina 28255 Attention: Chris Schiavone, with a copy to Bank of America Legal
      Department, 101 South Tryon Street, 101 S. Tryon St., 30th Floor, NC1-002-29-01,
      Charlotte, North Carolina 28255, Attention: Associate General Counsel, or such
      other address as may be furnished to the Seller, the Servicer and the Trustee
      in
      writing by the Depositor, and (d) in the case of the Servicer, Litton Loan
      Servicing LP, 4828 Loop Central Drive, Houston, Texas 77081, Attention: Janice
      McClure, or such other address as may be furnished to the Seller, the Depositor
      and the Trustee in writing by the Servicer. Any notice required or permitted
      to
      be mailed to a Certificateholder shall be given by first class mail, postage
      prepaid, at the address of such Holder as shown in the Certificate Register.
      Notice of any Servicer Event of Termination shall be given by telecopy and
      by
      certified mail. Any notice so mailed within the time prescribed in this
      Agreement shall be conclusively presumed to have duly been given when mailed,
      whether or not the Certificateholder receives such notice. A copy of any notice
      required to be telecopied hereunder shall also be mailed to the appropriate
      party in the manner set forth above.

    

    
      
         

      

      
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    Section
      11.06. Severability of Provisions.

    

    If
      any
      one or more of the covenants, agreements, provisions or terms of this Agreement
      shall for any reason whatsoever be held invalid, then such covenants,
      agreements, provisions or terms shall be deemed severable from the remaining
      covenants, agreements, provisions or terms of this Agreement and shall in no
      way
      affect the validity or enforceability of the other provisions of this Agreement
      or of the Certificates or the rights of the Holders thereof.

    

    Section
      11.07. Article
      and Section References.

    

    All
      article and section references used in this Agreement, unless otherwise
      provided, are to articles and sections in this Agreement.

    

    Section
      11.08. Notice
      to the Rating Agencies.

    

    (a) Each
      of
      the Trustee and the Servicer shall be obligated to use its best reasonable
      efforts promptly to provide notice to the Rating Agencies with respect to each
      of the following of which a Responsible Officer of the Trustee or the Servicer,
      as the case may be, has actual knowledge:

    

    (i) any
      material change or amendment to this Agreement;

    

    (ii) the
      occurrence of any Servicer Event of Termination that has not been cured or
      waived;

    

    (iii) the
      resignation or termination of the Servicer or the Trustee;

    

    (iv) the
      final
      payment to Holders of the Certificates of any Class;

    

    (v) any
      change in the location of any Account; and

    

    (vi) if
      the
      Trustee is acting as successor Servicer pursuant to Section 7.02 hereof,
      any event that would result in the inability of the Trustee to make
      Advances.

    

    (vii) In
      addition, the Servicer shall promptly furnish to each Rating Agency copies
      of
      the following:

    

    (A) each
      annual statement as to compliance described in Section 3.19
      hereof;

    

    (B) each
      annual independent public accountants’ servicing report described in Section
      3.20 hereof; and

    

    (C) each
      notice delivered pursuant to Section 7.01(a) hereof which relates to the
      fact that the Servicer has not made an Advance.

    

    
      
         

      

      
        166

        
          

        

      

      
         

      

    

    Any
      such
      notice pursuant to this Section 11.08 shall be in writing and shall be
      deemed to have been duly given if personally delivered or mailed by first class
      mail, postage prepaid, or by express delivery service to DBRS, One Exchange
      Plaza, 55 Broadway, 15th
      Floor,
      New York, New York 10006; Moody’s Investors Service, Inc., 99 Church Street, New
      York, New York 10007, Attention: Managing Director, Residential Mortgage-Backed
      Securities; and Standard & Poor’s, a division of The McGraw-Hill Companies,
      Inc., 55 Water Street, New York, New York 10041, Attention: Mortgage
      Surveillance Group.

    

    Section
      11.09. Further
      Assurances.

    

    Notwithstanding
      any other provision of this Agreement, neither the Certificateholders (other
      than the Residual Certificateholders), nor the Trustee shall have any obligation
      to consent to any amendment or modification of this Agreement unless they have
      been provided reasonable security or indemnity against their out-of-pocket
      expenses (including reasonable attorneys’ fees) to be incurred in connection
      therewith.

    

    Section
      11.10. Benefits
      of Agreement.

    

    Nothing
      in this Agreement or in the Certificates, expressed or implied, shall give
      to
      any Person, other than the Certificateholders and the parties hereto and their
      successors hereunder, and the Swap Provider, any benefit or any legal or
      equitable right, remedy or claim under this Agreement.

    

    Section
      11.11. Acts
      of Certificateholders.

    

    (a) Any
      request, demand, authorization, direction, notice, consent, waiver or other
      action provided by this Agreement to be given or taken by the Certificateholders
      may be embodied in and evidenced by one or more instruments of substantially
      similar tenor signed by such Certificateholders in person or by agent duly
      appointed in writing; and such action shall become effective when such
      instrument or instruments are delivered to the Trustee, the Seller and the
      Servicer. Such instrument or instruments (and the action embodied therein and
      evidenced thereby) are herein sometimes referred to as the “act” of the
      Certificateholders signing such instrument or instruments. Proof of execution
      of
      any such instrument or of a writing appointing any such agent shall be
      sufficient for any purpose of this Agreement and conclusive in favor of the
      Trustee and the Trust, if made in the manner provided in this
      Section 11.11.

    

    (b) The
      fact
      and date of the execution by any Person of any such instrument or writing may
      be
      proved by the affidavit of a witness of such execution or by the certificate
      of
      a notary public or other officer authorized by law to take acknowledgments
      of
      deeds, certifying that the individual signing such instrument or writing
      acknowledged to him the execution thereof. Whenever such execution is by a
      signer acting in a capacity other than his or her individual capacity, such
      certificate or affidavit shall also constitute sufficient proof of his
      authority.

    

    (c) Any
      request, demand, authorization, direction, notice, consent, waiver or other
      action by any Certificateholder shall bind every future Holder of such
      Certificate and the Holder of every Certificate issued upon the registration
      of
      transfer thereof or in exchange therefor or in lieu thereof, in respect of
      anything done, omitted or suffered to be done by the Trustee or the Trust in
      reliance thereon, whether or not notation of such action is made upon such
      Certificate.

    

    
      
         

      

      
        167

        
          

        

      

      
         

      

    

    Section
      11.12. Regulation
      AB Compliance; Intent of the Parties; Reasonableness.

    

    The
      parties hereto acknowledge that interpretations of the requirements of
      Regulation AB may change over time, whether due to interpretive guidance
      provided by the Securities and Exchange Commission or its staff, consensus
      among
      participants in the asset-backed securities markets, advice of counsel, or
      otherwise, and agree to comply with requests made by the Depositor in good
      faith
      for delivery of information under these provisions on the basis of evolving
      interpretations of Regulation AB. In connection with the C-BASS 2007-CB5 Trust,
      the Servicer, the Seller and the Trustee shall cooperate fully with the
      Depositor to deliver to the Depositor (including its assignees or designees),
      any and all statements, reports, certifications, records and any other
      information available to such party and reasonably necessary in the good faith
      determination of the Depositor to permit the Depositor to comply with the
      provisions of Regulation AB, together with such disclosures relating to the
      Servicer, the Seller, the Custodian and the Trustee, as applicable, reasonably
      believed by the Depositor to be necessary in order to effect such
      compliance.

    

    
      
         

      

      
        168

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF, the Seller, the Depositor, the Servicer and the Trustee have
      caused their names to be signed hereto by their respective officers thereunto
      duly authorized, all as of the day and year first above written.

     

    ASSET
      BACKED FUNDING CORPORATION,

    as
      Depositor

     

    By: 
      /s/
      Juanita L. Deane-Warner        

    Name:
      Juanit L. Deane-Warner

    Title:
      Vice President

     

    CREDIT-BASED
      ASSET SERVICING AND SECURITIZATION LLC,
      as Seller

     

    By: 
      /s/
      David A. Chin              

    Name:
      David A. Chin

    Title:
      Vice President

     

    LITTON
      LOAN SERVICING LP,
      as Servicer

     

    By: 
      /s/
      Janice McClure              

    Name:
      Janice McClure

    Title:
      Senior Vice President

     

    LASALLE
      BANK NATIONAL ASSOCIATION, not in its individual capacity but solely
as
      Trustee for the 2007-CB5 Trust, C-BASS Mortgage Loan Asset-Backed Certificates,
      Series 2007-CB5

     

    By:
      /s/
      Susan L. Feld                

    Name:
      Susan L. Feld

    Title:
      Vice President

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
              STATE
                OF NEW YORK

            	
              )

            
	 	
              )
                ss.:

            
	
              COUNTY
                OF NEW YORK 

            	
              )

            

    

    

    On
      the
      31st day of May, 2007 before me, a notary public in and for said State,
      personally appeared Juanit L. Deane-Warner, known to me to be a Vice President
      of Asset Backed Funding Corporation, a Delaware corporation 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/
      Lisa McClain            

    Notary
      Public

     

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
              STATE
                OF NEW YORK

            	
              )

            
	 	
              )
                ss.:

            
	
              COUNTY
                OF NEW YORK

            	
              )

            

    

    

    On
      the
      31st day of May, 2007 before me, a notary public in and for said State,
      personally appeared David A. Chin known to me to be a Vice President of
      Credit-Based Asset Servicing and Securitization LLC, a limited liability company
      that executed the within instrument, and also known to me to be the person
      who
      executed it on behalf of said limited liability company, and acknowledged to
      me
      that such limited liability company 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/
      Carmen Mercado            

    Notary
      Public

     

     

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
              STATE
                OF ILLINOIS

            	
              )

            
	 	
              )
                ss.:

            
	
              COUNTY
                OF COOK

            	
              )

            

    

    

    On
      the
      31st day of May, 2007 before me, a notary public in and for said State,
      personally appeared Susan L. Feld, known to me to be a Vice President of LaSalle
      Bank National Association, a national banking association that executed the
      within instrument, and also known to me to be the person who executed it on
      behalf of said association, and acknowledged to me that such 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/
      Christine M. Orsi            

    Notary
      Public

     

     

     

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
              STATE
                OF TEXAS

            	
              )

            
	 	
              )
                ss.:

            
	
              COUNTY
                OF HARRIS

            	
              )

            

    

    

    On
      the
      31st day of May, 2007 before me, a notary public in and for said State,
      personally appeared Janice McClure, known to me to be a Senior Vice President
      of
      Litton Loan Servicing LP, a Delaware limited partnership, that executed the
      within instrument, and also known to me to be the person who executed it on
      behalf of said limited partnership, and acknowledged to me that such limited
      partnership 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/
      Tammy Kaye Jones                

    Notary
      Public

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