Document:

Sale and Servicing Agreement

 EXHIBIT 10.19 
  
 STRUCTURED ASSET MORTGAGE INVESTMENTS II INC., 
 as Depositor 
  
 HOMEBANC MORTGAGE
TRUST 2004-1, 
 as Issuer 
  
 U.S. BANK NATIONAL ASSOCIATION, 
 as Indenture
Trustee 
  
 WELLS FARGO BANK, NATIONAL ASSOCIATION, 
 as Master Servicer and Securities Administrator 
  
 and 
  
 EMC MORTGAGE CORPORATION, 
 as Seller and Company 
  

  
 SALE AND SERVICING AGREEMENT 
  
 Dated as of July 30, 2004 
  

  
 Structured Asset Mortgage Investments II Inc. 
 HomeBanc Mortgage Trust 2004-1, 
 Mortgage-Backed Notes, Series 2004-1 

 TABLE OF CONTENTS 
  

							
	 	  	 	  	 	  	Page

	 ARTICLE IDefinitions
	  	 
	 	  	Section 1.01	  	Definitions	  	2
	 	  	Section 1.02	  	Other Definitional Provisions	  	2
		
	 ARTICLE IIConveyance of Mortgage Loans;
	  	 
	 	  	Section 2.01	  	Conveyance of Mortgage Loans to Issuer	  	3
	 	  	Section 2.02	  	Acceptance of Mortgage Loans by the Issuer	  	5
	 	  	Section 2.03	  	Assignment of Interest in the Mortgage Loan Purchase Agreement	  	7
	 	  	Section 2.04	  	Substitution of Mortgage Loans	  	8
	 	  	Section 2.05	  	Representations and Warranties Concerning the Depositor	  	9
	 	  	Section 2.06	  	Representations and Warranties Regarding the Master Servicer.	  	10
	 	  	Section 2.07	  	Assignment of Agreement	  	11
		
	 ARTICLE IIIAdministration and Servicing of Mortgage Loans
	  	 
	 	  	Section 3.01	  	Master Servicer	  	12
	 	  	Section 3.02	  	[Reserved]	  	13
	 	  	Section 3.03	  	Monitoring of Servicer	  	13
	 	  	Section 3.04	  	Fidelity Bond	  	14
	 	  	Section 3.05	  	Power to Act; Procedures	  	14
	 	  	Section 3.06	  	Due-on-Sale Clauses; Assumption Agreements	  	15
	 	  	Section 3.07	  	Release of Mortgage Files	  	15
	 	  	Section 3.08	  	Documents, Records and Funds in Possession of Master Servicer To Be Held for Issuer and Indenture Trustee	  	16
	 	  	Section 3.09	  	Standard Hazard Insurance and Flood Insurance Policies	  	17
	 	  	Section 3.10	  	Presentment of Claims and Collection of Proceeds	  	17
	 	  	Section 3.11	  	Maintenance of the Primary Mortgage Insurance Policies	  	17
	 	  	Section 3.12	  	Indenture Trustee to Retain Possession of Certain Insurance Policies and Documents	  	18
	 	  	Section 3.13	  	Realization Upon Defaulted Mortgage Loans	  	18
	 	  	Section 3.14	  	Compensation for the Master Servicer	  	19
	 	  	Section 3.15	  	REO Property	  	19
	 	  	Section 3.16	  	Annual Officer’s Certificate as to Compliance	  	20
	 	  	Section 3.17	  	Annual Independent Accountant’s Servicing Report	  	20
	 	  	Section 3.18	  	Reports Filed with Securities and Exchange Commission	  	20
	 	  	Section 3.19	  	The Company	  	21
	 	  	Section 3.20	  	UCC	  	21
	 	  	Section 3.21	  	Optional Purchase of Defaulted Mortgage Loans	  	22
	 	  	Section 3.22	  	Monthly Advances.	  	22
	 	  	Section 3.23	  	Compensating Interest Payments	  	22
		
	 ARTICLE IVAccounts
	  	 
	 	  	Section 4.01	  	Protected Accounts	  	23

  

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	 	  	Section 4.02	  	Master Servicer Collection Account	  	24
	 	  	Section 4.03	  	Permitted Withdrawals and Transfers from the Master Servicer Collection Account	  	25
	 	  	Section 4.04	  	Payment Account	  	26
	 	  	Section 4.05	  	Permitted Withdrawals and Transfers from the Payment Account	  	26
		
	 ARTICLE VThe Master Servicer
	  	 
	 	  	Section 5.01	  	Liabilities of the Master Servicer	  	29
	 	  	Section 5.02	  	Merger or Consolidation of the Master Servicer	  	29
	 	  	Section 5.03	  	Indemnification of the Indenture Trustee, Owner Trustee, the Master Servicer and the Securities Administrator	  	29
	 	  	Section 5.04	  	Limitations on Liability of the Master Servicer and Others	  	30
	 	  	Section 5.05	  	Master Servicer Not to Resign	  	31
	 	  	Section 5.06	  	Successor Master Servicer	  	31
	 	  	Section 5.07	  	Sale and Assignment of Master Servicing	  	31
		
	 ARTICLE VIDefault
	  	 
	 	  	Section 6.01	  	Master Servicer Events of Default	  	33
	 	  	Section 6.02	  	Indenture Trustee to Act; Appointment of Successor	  	34
	 	  	Section 6.03	  	Notification to Noteholders	  	35
	 	  	Section 6.04	  	Waiver of Defaults	  	36
		
	 ARTICLE VIIMiscellaneous Provisions
	  	 
	 	  	Section 7.01	  	Amendment	  	37
	 	  	Section 7.02	  	Recordation of Agreement	  	38
	 	  	Section 7.03	  	Governing Law	  	38
	 	  	Section 7.04	  	Notices	  	38
	 	  	Section 7.05	  	Severability of Provisions	  	39
	 	  	Section 7.06	  	Successors and Assigns	  	39
	 	  	Section 7.07	  	Article and Section Headings	  	39
	 	  	Section 7.08	  	Counterparts	  	39
	 	  	Section 7.09	  	Notice to Rating Agencies	  	39
	 	  	Section 7.10	  	Termination	  	39
	 	  	Section 7.11	  	No Petition	  	40
	 	  	Section 7.12	  	No Recourse	  	40

  

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 EXHIBITS 
  

							
	Exhibit A	 	-  	 	Mortgage Loan Schedule	 	A-1
	Exhibit B	 	-  	 	Request for Release of Documents	 	B-1
	Exhibit C	 	-  	 	HomeBanc Servicing Agreement	 	C-1
	Exhibit D	 	-  	 	Assignment Agreement	 	D-1
	Exhibit E	 	-  	 	Mortgage Loan Purchase Agreement	 	E-1
	Exhibit F	 	-  	 	Special Servicing Agreement	 	F-1

  

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 SALE AND SERVICING AGREEMENT 
  
 Sale and Servicing Agreement dated as of July 30, 2004 (the “Agreement”), among Structured Asset Mortgage
Investments II Inc., a Delaware corporation, as depositor (the “Depositor”), HomeBanc Mortgage Trust 2004-1, a Delaware statutory trust, as issuer (the “Issuer”), U.S. Bank National Association, a national banking association,
not in its individual capacity but solely as indenture trustee (the “Indenture Trustee”), Wells Fargo Bank, National Association, as master servicer (in such capacity, the “Master Servicer”) and as securities administrator (in
such capacity, the “Securities Administrator”), and EMC Mortgage Corporation, as seller (in such capacity, the “Seller”) and as company (in such capacity, the “Company”). 
  
 PRELIMINARY STATEMENT 
  
 On or prior to the Closing Date, the Depositor acquired the Mortgage Loans
from the Seller pursuant to the Mortgage Loan Purchase Agreement. Prior to the Closing Date, pursuant to a Trust Agreement, as amended and restated on the Closing Date, the Depositor created HomeBanc Mortgage Trust 2004-1, a Delaware statutory
trust, for the purpose of holding the Mortgage Loans and issuing the Trust Certificates (the “Certificates”), pursuant to the Trust Agreement, and the Notes, pursuant to the Indenture. Pursuant to this Agreement, on the Closing Date, the
Depositor will sell the Mortgage Loans and certain other property to the Issuer and pursuant to the Indenture, the Issuer will pledge all of its right, title and interest in and to the Mortgage Loans and other property acquired from the Depositor
pursuant to this Agreement to the Indenture Trustee to secure the Notes issued pursuant to the Indenture. In consideration for the Mortgage Loans and other property conveyed pursuant to this Agreement, the Depositor will receive from the Issuer the
Certificates evidencing the entire beneficial ownership interest in the Issuer and the Notes representing indebtedness of the Issuer. 
  
 The Mortgage Loans will have an Outstanding Principal Balance as of the Cut-off Date, after deducting all Scheduled Principal due on or before the Cut-off
Date, of $992,673,226.36. 
  
 In consideration of the mutual
agreements herein contained, each of the Depositor, the Issuer, the Master Servicer, the Securities Administrator, the Seller, the Company and the Indenture Trustee undertakes and agrees to perform their respective duties hereunder as follows:

 ARTICLE I 
 Definitions 
  
 Section I.01
Definitions. For all purposes of this Agreement, except as otherwise expressly provided herein or unless the context otherwise requires, capitalized terms not otherwise defined herein shall have the meanings assigned to such terms in the
Definitions contained in Appendix A to the Indenture which is incorporated by reference herein. All other capitalized terms used herein shall have the meanings specified herein. 
  
 Section I.02 Other Definitional Provisions. 
  
 (01) All terms defined in this Agreement shall have the defined meanings when used in any certificate or other document made
or delivered pursuant hereto unless otherwise defined therein. 
  
 (02) As used in this Agreement and in any certificate or other document made or delivered pursuant hereto or thereto, accounting terms not defined in this Agreement or in any such certificate or other document, and accounting terms partly
defined in this Agreement or in any such certificate or other document, to the extent not defined, shall have the respective meanings given to them under generally accepted accounting principles. To the extent that the definitions of accounting
terms in this Agreement or in any such certificate or other document are inconsistent with the meanings of such terms under generally accepted accounting principles, the definitions contained in this Agreement or in any such certificate or other
document shall control. 
  
 (03) The words “hereof,”
“herein,” “hereunder” and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement; Section and Exhibit references contained in this
Agreement are references to Sections and Exhibits in or to this Agreement unless otherwise specified; and the term “including” shall mean “including without limitation”. 
  
 (04) The definitions contained in this Agreement are applicable to the
singular as well as the plural forms of such terms and to the masculine as well as the feminine and neuter genders of such terms. 
  
 (05) Any agreement, instrument or statute defined or referred to herein or in any instrument or certificate delivered in connection herewith means such
agreement, instrument or statute as from time to time amended, modified or supplemented and includes (in the case of agreements or instruments) references to all attachments thereto and instruments incorporated therein; references to a Person are
also to its permitted successors and assigns. 
  

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 ARTICLE II 
 Conveyance of Mortgage Loans; 
  
 Section II.01 Conveyance of Mortgage Loans to Issuer. (01) The Depositor concurrently with the execution and delivery of this Agreement, sells, transfers and assigns to the Issuer without recourse all its right, title and interest in
and to (i) the Mortgage Loans identified in the Mortgage Loan Schedule, including all interest and principal due with respect to the Mortgage Loans after the Cut-off Date, but excluding any payments of principal and interest due on or prior to the
Cut-off Date; (ii) such assets as shall from time to time be credited or are required by the terms of this Agreement to be credited to the Master Servicer Collection Account, (iii) such assets relating to the Mortgage Loans as from time to time may
be held by the Servicer in the Protected Account, the Master Servicer in the Master Servicer Collection Account and the Indenture Trustee in the Payment Account, (iv) any REO Property, (v) the Required Insurance Policies and any amounts paid or
payable by the insurer under any Insurance Policy (to the extent the mortgagee has a claim thereto), (vi) the Mortgage Loan Purchase Agreement to the extent provided in Subsection 2.03(a), (vii) the rights with respect to the HomeBanc Servicing
Agreement as assigned to the Issuer by the Assignment Agreement and (viii) any proceeds of the foregoing. Although it is the intent of the Depositor and the Issuer that the conveyance of the Depositor’s right, title and interest in and to the
Mortgage Loans and other assets in the Trust Estate to the Issuer pursuant to this Agreement shall constitute a purchase and sale and not a loan, in the event that such conveyance is deemed to be a loan, it is the intent of the parties to this
Agreement that the Depositor shall be deemed to have granted to the Issuer a first priority perfected security interest in all of the Depositor’s right, title and interest in, to and under the Mortgage Loans and other assets in the Trust
Estate, and that this Agreement shall constitute a security agreement under applicable law. 
  
 (02) In connection with the above transfer and assignment, the Depositor hereby delivers to the Custodian, on behalf of the Issuer, with respect to each Mortgage Loan: 
  
 (01) the original Mortgage Note, endorsed without recourse in blank or to
the order of the Indenture Trustee and showing an unbroken chain of endorsements from the originator thereof to the Person endorsing it in blank or to the Indenture Trustee, or lost note affidavit together with a copy of the related Mortgage Note;

  
 (02) the original Mortgage and, if the related Mortgage Loan
is a MOM Loan, noting the presence of the MIN and language indicating that such Mortgage Loan is a MOM Loan, which shall have been recorded (or if the original is not available, a copy), with evidence of such recording indicated thereon (or if
clause (w) in the proviso below applies, shall be in recordable form); 
  
 (03) unless the Mortgage Loan is a MOM Loan, a certified copy of the assignment (which may be in the form of a blanket assignment if permitted in the jurisdiction in which the Mortgaged Property is located) in blank or to “U.S. Bank
National Association, as Indenture Trustee, on behalf of the Noteholders”, with evidence of recording with respect to each Mortgage Loan in the name of the Indenture Trustee thereon (or if clause (w) in the proviso below applies or for Mortgage
Loans with respect to which the related Mortgaged Property is located in a state other than Maryland or an Opinion of Counsel has been provided as set forth in this Section 2.01(b), shall be in recordable form); 
  

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 (04) all intervening assignments of the Security Instrument, if applicable and only to the extent
available to the Depositor with evidence of recording thereon; 
  
 (05) the original or a copy of the policy or certificate of primary mortgage guaranty insurance, to the extent available, if any; 
  
 (06) the original or a copy of the policy of title insurance or mortgagee’s certificate of title insurance or commitment or binder for title
insurance; and 
  
 (07) originals of all modification agreements,
if applicable and available; 
  
 provided, however, that in lieu of
the foregoing, the Depositor may deliver to the Custodian, the following documents, under the circumstances set forth below: (w) in lieu of the original Security Instrument (including the Mortgage), assignments to the Indenture Trustee or
intervening assignments thereof which have been delivered, are being delivered or will, upon receipt of recording information relating to such documents required to be included thereon, be delivered to recording offices for recording and have not
been returned to the Depositor in time to permit their delivery as specified above, the Depositor may deliver a true copy thereof with a certification by the Servicer, or its agent on its behalf, substantially to the effect that such copy is a true
and correct copy of the original; (x) in lieu of the Security Instrument, assignment in blank or to the Indenture Trustee or intervening assignments thereof, if the applicable jurisdiction retains the originals of such documents (as evidenced by a
certification from the Depositor to such effect) the Depositor may deliver photocopies of such documents containing an original certification by the judicial or other governmental authority of the jurisdiction where such documents were recorded or
from the Depositor’s agent, escrow agent or closing attorney; (y) in lieu of the Mortgage Notes relating to the Mortgage Loans identified on Exhibit 5 to the Mortgage Loan Purchase Agreement, the Depositor may deliver lost note affidavits from
the Seller; and (z) the Depositor shall not be required to deliver intervening assignments or Mortgage Note endorsements between the Underlying Seller and the Seller, between the Seller and the Depositor, between the Depositor and the Issuer, and
between the Issuer and the Indenture Trustee; and provided, further, however, that in the case of Mortgage Loans which have been prepaid in full after the Cut-off Date and prior to the Closing Date, the Depositor, in lieu of delivering the above
documents, may deliver to the Indenture Trustee, a certification to such effect and shall deposit all amounts paid in respect of such Mortgage Loans in the Master Servicer Collection Account on the Closing Date. The Depositor shall deliver such
original documents (including any original documents as to which certified copies had previously been delivered) to the Custodian, promptly after they are received. The Depositor shall cause the Seller, at its expense, to cause each assignment of
the Security Instrument to the Indenture Trustee to be recorded not later than 180 days after the Closing Date, unless (a) such recordation is not required by the Rating Agencies as evidenced in writing or an Opinion of Counsel addressed to the
Indenture Trustee has been provided to the Indenture Trustee and the Issuer which states that recordation of such Security Instrument is not required to protect the interests of the Noteholders in the related Mortgage Loans or (b) MERS is identified
on the Mortgage or on a properly recorded assignment of the Mortgage as the mortgagee of record solely as nominee for the Seller and its successor and assigns; provided, 
  

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 however, notwithstanding the foregoing, each assignment shall be submitted for recording by the Seller in the manner
described above, at no expense to the Issuer or the Indenture Trustee, upon the earliest to occur of: (i) reasonable direction by the Holders of Notes aggregating at least 25% of the Note Principal Balance of the Notes, (ii) the occurrence of a
Master Servicer Event of Default or an Event of Default, (iii) the occurrence of a bankruptcy, insolvency or foreclosure relating to the Seller and (iv) the occurrence of a servicing transfer as described in Section 6.02 hereof. Notwithstanding the
foregoing, if the Seller fails to pay the cost of recording the assignments, such expense will be paid by the Indenture Trustee and the Indenture Trustee shall be reimbursed for such expenses by the Trust Estate in accordance with Section 6.07 of
the Indenture. 
  
 Section II.02 Acceptance of Mortgage Loans
by the Issuer. (01) The Issuer acknowledges the sale, transfer and assignment of the Trust Estate to it by the Depositor and receipt of, subject to further review by the Custodian, on its behalf, and the exceptions which may be noted by the
Custodian, on its behalf, pursuant to the procedures described below, and the Issuer will cause the Custodian to hold, the documents (or certified copies thereof) delivered to the Custodian, pursuant to Section 2.01, and any amendments, replacements
or supplements thereto and all other assets of the Trust Estate delivered to it, in trust for the use and benefit of all present and future Holders of the Notes issued pursuant to the Indenture. On the Closing Date, in accordance with the Custodial
Agreement, the Custodian shall acknowledge with respect to each Mortgage Loan by delivery to the Depositor, the Seller, the Indenture Trustee and the Issuer of an Initial Certification, receipt of the Mortgage File, but without review of such
Mortgage File, except to the extent necessary to confirm that such Mortgage File contains the related Mortgage Note or lost note affidavit. No later than 90 days after the Closing Date (or, with respect to any Substitute Mortgage Loan, within five
Business Days after the receipt by the Custodian thereof), the Custodian, in accordance with the Custodial Agreement, shall review each Mortgage File delivered to it and shall execute and deliver to the Depositor, the Seller, the Indenture Trustee
and Issuer an Interim Certification. In conducting such review, the Custodian will ascertain whether all documents required to be reviewed by it have been executed and received, and based on the Mortgage Loan Schedule, whether the Mortgage Notes
relate, determined on the basis of the Mortgagor name, original principal balance and loan number, to the Mortgage Loans it has received, as identified in the Mortgage Loan Schedule. In performing any such review, the Custodian may conclusively rely
on the purported due execution and genuineness of any such document and on the purported genuineness of any signature thereon. If the Custodian finds any document constituting part of the Mortgage File has not been executed or received, or is
unrelated, determined on the basis of the Mortgagor name, original principal balance and loan number, to the Mortgage Loans identified in Exhibit A or does not conform on its face to the review criteria specified in this Section (a “Material
Defect”), the Custodian shall notify the Seller and the Indenture Trustee of such Material Defect in writing. In accordance with the Mortgage Loan Purchase Agreement, the Seller shall correct or cure any such Material Defect within ninety (90)
days from the date of notice from the Indenture Trustee of the defect and if the Seller fails to correct or cure the Material Defect within such period, the Indenture Trustee shall enforce the Seller’s obligation under the Mortgage Loan
Purchase Agreement to, within 90 days from the Indenture Trustee’s notification, provide a Substitute Mortgage Loan or purchase such Mortgage Loan at the Repurchase Price; provided, however, that if such Material Defect relates solely to the
inability of the Seller to deliver the original Security Instrument or intervening assignments thereof, or a certified copy because the originals of such documents, or a certified copy have not been returned by the applicable jurisdiction, the
Seller shall not be required to purchase such Mortgage Loan if the Seller 
  

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 delivers such original documents or certified copy promptly upon receipt, but in no event later than 360 days after the
Closing Date. The foregoing repurchase obligation shall not apply in the event that the Seller cannot deliver such original or copy of any document submitted for recording to the appropriate recording office in the applicable jurisdiction because
such document has not been returned by such office; provided that the Seller shall instead deliver a recording receipt of such recording office or, if such receipt is not available, a certificate confirming that such documents have been accepted for
recording, and delivery to the Custodian shall be effected by the Seller within thirty days of its receipt of the original recorded document. 
  
 (02) No later than 180 days after the Closing Date, the Custodian, in accordance with the Custodial Agreement, will review, for the benefit of the
Noteholders, the Mortgage Files delivered to it and will execute and deliver or cause to be executed and delivered to the Depositor, the Seller, the Indenture Trustee and the Issuer a Final Certification. In conducting such review, the Custodian
will ascertain whether an original of each document required to be recorded has been returned from the recording office with evidence of recording thereon or a certified copy has been obtained from the recording office. If the Custodian finds a
Material Defect, the Custodian shall promptly notify the Seller and the Indenture Trustee in writing (provided, however, that with respect to those documents described in subsections (b)(iv), (v) and (vii) of Section 2.01, the Custodian’s
obligations shall extend only to the documents actually delivered to the Custodian pursuant to such subsections). In accordance with the Mortgage Loan Purchase Agreement, the Seller shall correct or cure any such Material Defect within 90 days from
the date of notice from the Custodian or the Indenture Trustee of the Material Defect and if the Seller is unable to cure such Material Defect within such period, and if such Material Defect materially and adversely affects the interests of the
Noteholders in the related Mortgage Loan, the Indenture Trustee shall enforce the Seller’s obligation under the Mortgage Loan Purchase Agreement to, within 90 days from the Custodian’s or Indenture Trustee’s notification, provide a
Substitute Mortgage Loan or purchase such Mortgage Loan at the Repurchase Price; provided, however, that if such defect relates solely to the inability of the Seller to deliver the original Security Instrument or intervening assignments thereof, or
a certified copy, because the originals of such documents or a certified copy, have not been returned by the applicable jurisdiction, the Seller shall not be required to purchase such Mortgage Loan, if the Seller delivers such original documents or
certified copy promptly upon receipt, but in no event later than 360 days after the Closing Date. The foregoing repurchase obligation shall not apply in the event that the Seller cannot deliver such original or copy of any document submitted for
recording to the appropriate recording office in the applicable jurisdiction because such document has not been returned by such office; provided that the Seller shall instead deliver a recording receipt of such recording office or, if such receipt
is not available, a certificate confirming that such documents have been accepted for recording, and delivery to the Indenture Trustee shall be effected by the Seller within thirty days of its receipt of the original recorded document. 

 
 (03) In the event that a Mortgage Loan is purchased by the Seller in
accordance with Subsections 2.02(a) or (b) above, the Seller shall remit to the Master Servicer the Repurchase Price for deposit in the Master Servicer Collection Account and the Seller shall provide to the Securities Administrator and the Indenture
Trustee written notification detailing the components of the Repurchase Price. Upon deposit of the Repurchase Price in the Master Servicer Collection Account, the Depositor shall notify the Indenture Trustee and the Custodian and, the Indenture
Trustee (upon receipt of a Request for Release in the form of Exhibit B attached hereto with respect to such 
  

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 Mortgage Loan and certification that the Repurchase Price has been deposited in the Master Servicer Collection Account),
shall cause the Custodian to release to the Seller the related Mortgage File and the Indenture Trustee shall execute and deliver all instruments of transfer or assignment, without recourse, representation or warranty, furnished to it by the Seller,
as are necessary to vest in the Seller title to and rights under the Mortgage Loan. Such purchase shall be deemed to have occurred on the date on which the Repurchase Price in available funds is deposited in the Master Servicer Collection Account.
The Master Servicer shall amend the Mortgage Loan Schedule, which was previously delivered to it by the Depositor in a form agreed to between the Depositor, the Indenture Trustee and the Custodian, to reflect such repurchase and shall promptly
deliver to the Rating Agencies, the Indenture Trustee, the Custodian and the Issuer a copy of such amendment. The obligation of the Seller to repurchase or substitute for any Mortgage Loan a Substitute Mortgage Loan as to which such a Material
Defect in a constituent document exists shall be the sole remedy respecting such Material Defect available to the Issuer, the Noteholders or to the Indenture Trustee on their behalf. 
  
 Section II.03 Assignment of Interest in the Mortgage Loan Purchase Agreement. (01) The Depositor hereby assigns to
the Issuer, all of its right, title and interest in the Mortgage Loan Purchase Agreement, including but not limited to the Depositor’s rights and obligations pursuant to the HomeBanc Servicing Agreement (noting that the Seller has retained the
right in the event of breach of the representations, warranties and covenants, if any, with respect to the Mortgage Loans of the Servicer under the HomeBanc Servicing Agreement to enforce the provisions thereof and to seek all or any available
remedies). The Depositor hereby acknowledges that such right, title and interest in the Mortgage Loan Purchase Agreement, will be pledged by the Issuer to the Indenture Trustee pursuant to the Indenture. The obligations of the Seller to substitute
or repurchase, as applicable, a Mortgage Loan shall be the Issuer’s, the Indenture Trustee’s and the Noteholders’ sole remedy for any breach thereof. At the request of the Issuer or the Indenture Trustee, the Depositor shall take such
actions as may be necessary to enforce the above right, title and interest on behalf of the Issuer, the Indenture Trustee and the Noteholders and shall execute such further documents as the Issuer or the Indenture Trustee may reasonably require in
order to enable the Indenture Trustee to carry out such enforcement. 
  
 (02) If the Depositor, the Securities Administrator, the Issuer or the Indenture Trustee discovers a breach of any of the representations and warranties set forth in the Mortgage Loan Purchase Agreement, which breach materially and
adversely affects the value of the interests of the Issuer, the Noteholders or the Indenture Trustee in the related Mortgage Loan, the party discovering the breach shall give prompt written notice of the breach to the other parties. Any breach of a
representation or warranty contained in clauses (xviii) or (xxvi) through (xxx) of Section 7 of the Mortgage Loan Purchase Agreement in respect of a Group I Loan, shall be deemed to materially adversely affect the interests of the Noteholders. The
Seller, within 90 days of its discovery or receipt of notice that such breach has occurred (whichever occurs earlier), shall cure the breach in all material respects or, subject to the Mortgage Loan Purchase Agreement and Section 2.04 of this
Agreement, shall purchase the Mortgage Loan or any property acquired with respect thereto from the Issuer; provided, however, that if there is a breach of any representation set forth in the Mortgage Loan Purchase Agreement, and the Mortgage Loan or
the related property acquired with respect thereto has been sold, then the Seller shall pay, in lieu of the Repurchase Price, any excess of the Repurchase Price over the Net Liquidation Proceeds received upon such sale. If the Net Liquidation
Proceeds exceed the Repurchase Price, any excess shall be paid to the Seller to the extent not required by law 
  

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 to be paid to the borrower. Any such purchase by the Seller shall be made by providing an amount equal to the Repurchase
Price to the Master Servicer for deposit in the Master Servicer Collection Account and written notification detailing the components of such Repurchase Price. The Depositor shall submit to the Indenture Trustee and the Custodian a Request for
Release, and the Indenture Trustee shall cause the Custodian to release, upon receipt of certification from the Master Servicer that the Repurchase Price has been deposited in the Master Servicer Collection Account, to the Seller the related
Mortgage File and the Indenture Trustee shall execute and deliver all instruments of transfer or assignment furnished to it by the Seller, without recourse, representation or warranty as are necessary to vest in the Seller title to and rights under
the Mortgage Loan or any property acquired with respect thereto. Such purchase shall be deemed to have occurred on the date on which the Repurchase Price in available funds is deposited in the Master Servicer Collection Account. The Master Servicer
shall amend the Mortgage Loan Schedule to reflect such repurchase and shall promptly deliver to the Issuer, Indenture Trustee, the Custodian and the Rating Agencies a copy of such amendment. Enforcement of the obligation of the Seller to purchase
(or substitute a Substitute Mortgage Loan for) any Mortgage Loan or any property acquired with respect thereto (or pay the Repurchase Price as set forth in the above proviso) as to which a breach has occurred and is continuing shall constitute the
sole remedy respecting such breach available to the Issuer, the Noteholders or the Indenture Trustee on their behalf. 
  
 Section II.04 Substitution of Mortgage Loans. Notwithstanding anything to the contrary in this Agreement, in lieu of purchasing a Mortgage Loan
pursuant to the Mortgage Loan Purchase Agreement or Sections 2.02 or 2.03 of this Agreement, the Seller may, no later than the date by which such purchase by the Seller would otherwise be required, tender to the Indenture Trustee a Substitute
Mortgage Loan accompanied by a certificate of an authorized officer of the Seller that such Substitute Mortgage Loan conforms to the requirements set forth in the definition of “Substitute Mortgage Loan” in this Agreement. The Indenture
Trustee shall cause the Custodian to examine the Mortgage File for any Substitute Mortgage Loan in the manner set forth in Section 2.02(a) and the Indenture Trustee shall cause the Custodian to notify the Seller, in writing, within five Business
Days after receipt, whether or not the documents relating to the Substitute Mortgage Loan satisfy the requirements of the fifth sentence of Subsection 2.02(a). Within two Business Days after such notification, the Seller shall provide to the Master
Servicer for deposit in the Master Servicer Collection Account the amount, if any, by which the Outstanding Principal Balance as of the next preceding Due Date of the Mortgage Loan for which substitution is being made, after giving effect to the
Scheduled Principal due on such date, exceeds the Outstanding Principal Balance as of such date of the Substitute Mortgage Loan, after giving effect to Scheduled Principal due on such date, which amount shall be treated for the purposes of this
Agreement as if it were the payment by the Seller of the Repurchase Price for the purchase of a Mortgage Loan by the Seller. After such notification to the Seller and, if any such excess exists, upon receipt of certification from the Master Servicer
that such excess has been deposited in the Master Servicer Collection Account, the Indenture Trustee shall accept such Substitute Mortgage Loan which shall thereafter be deemed to be a Mortgage Loan hereunder. In the event of such a substitution,
accrued interest on the Substitute Mortgage Loan for the month in which the substitution occurs and any Principal Prepayments made thereon during such month shall be the property of the Trust Estate and accrued interest for such month on the
Mortgage Loan for which the substitution is made and any Principal Prepayments made thereon during such month shall be the property of the Seller. The Scheduled Principal on a Substitute Mortgage Loan due on the Due Date in the month of substitution
shall be the property of the Seller and the Scheduled 
  

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 Principal on the Mortgage Loan for which the substitution is made due on such Due Date shall be the property of the Trust
Estate. Upon acceptance of the Substitute Mortgage Loan (and delivery to the Indenture Trustee and the Custodian of a Request for Release for such Mortgage Loan), the Indenture Trustee shall cause the Custodian to release to the Seller the related
Mortgage File related to any Mortgage Loan released pursuant to the Mortgage Loan Purchase Agreement or Section 2.04 of this Agreement, as applicable, and shall execute and deliver all instruments of transfer or assignment, without recourse,
representation or warranty in form as provided to it as are necessary to vest in the Seller title to and rights under any Mortgage Loan released pursuant to the Mortgage Loan Purchase Agreement or Section 2.04 of this Agreement, as applicable. The
Seller shall deliver to the Custodian the documents related to the Substitute Mortgage Loan in accordance with the provisions of the Mortgage Loan Purchase Agreement and Subsections 2.01(b) and 2.02(b) of this Agreement, as applicable, with the date
of acceptance of the Substitute Mortgage Loan deemed to be the Closing Date for purposes of the time periods set forth in those Subsections. The representations and warranties set forth in the Mortgage Loan Purchase Agreement shall be deemed to have
been made by the Seller with respect to each Substitute Mortgage Loan as of the date of acceptance of such Mortgage Loan by the Indenture Trustee. The Master Servicer shall amend the Mortgage Loan Schedule to reflect such substitution and shall
provide a copy of such amended Mortgage Loan Schedule to the Issuer, the Indenture Trustee, the Custodian and the Rating Agencies. 
  
 Section II.05 Representations and Warranties Concerning the Depositor. The Depositor hereby represents and warrants to the Issuer, the Indenture
Trustee, the Master Servicer and the Securities Administrator as follows: 
  
 (01) the Depositor (a) is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware and (b) is qualified and in good standing as a foreign corporation to do business
in each jurisdiction where such qualification is necessary, except where the failure so to qualify would not reasonably be expected to have a material adverse effect on the Depositor’s business as presently conducted or on the Depositor’s
ability to enter into this Agreement and to consummate the transactions contemplated hereby; 
  
 (02) the Depositor has full corporate power to own its property, to carry on its business as presently conducted and to enter into and perform its obligations under this Agreement; 
  
 (03) the execution and delivery by the Depositor of this Agreement have been
duly authorized by all necessary corporate action on the part of the Depositor; and neither the execution and delivery of this Agreement, nor the consummation of the transactions herein contemplated, nor compliance with the provisions hereof, will
conflict with or result in a breach of, or constitute a default under, any of the provisions of any law, governmental rule, regulation, judgment, decree or order binding on the Depositor or its properties or the articles of incorporation or by-laws
of the Depositor, except those conflicts, breaches or defaults which would not reasonably be expected to have a material adverse effect on the Depositor’s ability to enter into this Agreement and to consummate the transactions contemplated
hereby; 
  
 (04) the execution, delivery and performance by the
Depositor of this Agreement and the consummation of the transactions contemplated hereby do not require the consent or approval of, the giving of notice to, the registration with, or the taking of any other action in respect of, any state, federal
or other governmental authority or agency, except those consents, approvals, notices, registrations or other actions as have already been obtained, given or made; 
  

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 (05) this Agreement has been duly executed and delivered by the Depositor and, assuming due
authorization, execution and delivery by the other parties hereto, constitutes a valid and binding obligation of the Depositor enforceable against it in accordance with its terms (subject to applicable bankruptcy and insolvency laws and other
similar laws affecting the enforcement of the rights of creditors generally); 
  
 (06) there are no actions, suits or proceedings pending or, to the knowledge of the Depositor, threatened against the Depositor, before or by any court, administrative agency, arbitrator or governmental body (i) with
respect to any of the transactions contemplated by this Agreement or (ii) with respect to any other matter which in the judgment of the Depositor will be determined adversely to the Depositor and will if determined adversely to the Depositor
materially and adversely affect the Depositor’s ability to enter into this Agreement or perform its obligations under this Agreement; and the Depositor is not in default with respect to any order of any court, administrative agency, arbitrator
or governmental body so as to materially and adversely affect the transactions contemplated by this Agreement; and 
  
 (07) immediately prior to the transfer and assignment to the Issuer, each Mortgage Note and each Mortgage were not subject to an assignment or pledge, and
the Depositor had good and marketable title to and was the sole owner thereof and had full right to transfer and sell such Mortgage Loan to the Issuer free and clear of any encumbrance, equity, lien, pledge, charge, claim or security interest.

  
 Section II.06 Representations and Warranties Regarding the
Master Servicer. The Master Servicer represents and warrants to the Issuer, the Depositor, the Seller and the Indenture Trustee for the benefit of the Noteholders, as follows: 
  
 (01) The Master Servicer is a national banking association duly organized, validly existing and in good standing under the
laws of the Untied States of America and has the corporate power to own its assets and to transact the business in which it is currently engaged. The Master Servicer is duly qualified to do business as a foreign corporation 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 the business, properties,
assets, or condition (financial or other) of the Master Servicer or the validity or enforceability of this Agreement; 
  
 (02) The Master Servicer has the power and authority to make, execute, deliver and perform this Agreement and all of the transactions contemplated under
this Agreement, and has taken all necessary corporate action to authorize the execution, delivery and performance of this Agreement. When executed and delivered, this Agreement will constitute the legal, valid and binding obligation of the Master
Servicer enforceable in accordance with its terms, except as enforcement of such terms may be limited by bankruptcy, insolvency or similar laws affecting the enforcement of creditors’ rights generally and by the availability of equitable
remedies; 
  

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 (03) The Master Servicer is not required to obtain the consent of any other Person 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
consent, license, approval or authorization, or registration or declaration, as shall have been obtained or filed, as the case may be; 
  
 (04) The execution and delivery of this Agreement and the performance of the transactions contemplated hereby by the Master Servicer will not violate any
provision of any existing law or regulation or any order or decree of any court applicable to the Master Servicer or any provision of the certificate of incorporation or bylaws of the Master Servicer, or constitute a material breach of any mortgage,
indenture, contract or other agreement to which the Master Servicer is a party or by which the Master Servicer may be bound; and 
  
 (05) No litigation or administrative proceeding of or before any court, tribunal or governmental body is currently pending (other than litigation with
respect to which pleadings or documents have been filed with a court, but not served on the Master Servicer), or to the knowledge of the Master Servicer threatened, against the Master Servicer or any of its properties or with respect to this
Agreement or the Notes or the Certificates which, to the knowledge of the Master Servicer, has a reasonable likelihood of resulting in a material adverse effect on the transactions contemplated by this Agreement. 
  
 The foregoing representations and warranties shall survive any termination of
the Master Servicer hereunder. 
  
 Section II.07 Assignment of
Agreement. The Seller, the Depositor and the Master Servicer hereby acknowledge and agree that the Issuer may assign its interest under this Agreement to the Indenture Trustee, for the benefit of the Noteholders, as may be required to effect the
purposes of the Indenture, without further notice to, or consent of, the Seller, the Depositor or the Master Servicer, and the Indenture Trustee shall succeed to such of the rights of the Issuer hereunder as shall be so assigned. The Issuer shall,
pursuant to the Indenture, assign all of its right, title and interest in and to the Mortgage Loans and its right to exercise the remedies created by Article II of this Agreement for breaches of the representations, warranties, agreements and
covenants of the Seller contained in the Mortgage Loan Purchase Agreement, to the Indenture Trustee, for the benefit of the Noteholders. The Seller agrees that, upon such assignment to the Indenture Trustee, such representations, warranties,
agreements and covenants will run to and be for the benefit of the Indenture Trustee and the Indenture Trustee may enforce, without joinder of the Depositor or the Issuer, the repurchase obligations of the Seller set forth herein and in the Mortgage
Loan Purchase Agreement with respect to breaches of such representations, warranties, agreements and covenants. Any such assignment to the Indenture Trustee shall not be deemed to constitute an assignment to the Indenture Trustee of any obligations
or liabilities of the Issuer under this Agreement. 
  

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 ARTICLE III 
 Administration and Servicing of Mortgage Loans 
  
 Section III.01 Master Servicer. The Master Servicer shall supervise, monitor and oversee the obligations of the Servicer to service and administer the Mortgage Loans in accordance with the terms of the
Servicing Agreement and shall have full power and authority to do any and all things which it may deem necessary or desirable in connection with such master servicing and administration. In performing its obligations hereunder, the Master Servicer
shall act in a manner consistent with Accepted Master Servicing Practices. Furthermore, the Master Servicer shall oversee and consult with the Servicer as necessary from time-to-time to carry out the Master Servicer’s obligations hereunder,
shall receive, review and evaluate all reports, information and other data provided to the Master Servicer by the Servicer and shall cause the Servicer to perform and observe the covenants, obligations and conditions to be performed or observed by
such Servicer under the Servicing Agreement. The Master Servicer shall independently and separately monitor the Servicer’s servicing activities with respect to the Mortgage Loans, reconcile the results of such monitoring with such information
provided in the previous sentence on a monthly basis and coordinate corrective adjustments to the Servicer’s and Master Servicer’s records, and based on such reconciled and corrected information, the Master Servicer shall provide such
information to the Securities Administrator as shall be necessary in order for it to prepare the statements specified in Section 7.03 of the Indenture, and prepare any other information and statements required to be forwarded by the Master Servicer
hereunder. The Master Servicer shall reconcile the results of its Mortgage Loan monitoring with the actual remittances of the Servicer pursuant to the Servicing Agreement. 
  
 The Indenture Trustee shall furnish the Servicer and the Master Servicer with any powers of attorney and other documents in
form as provided to it necessary or appropriate to enable the Servicer and the Master Servicer to service and administer the related Mortgage Loans and REO Property. The Indenture Trustee shall not be liable for the Servicer’s or the Master
Servicer’s use or misuse of such powers of attorney. 
  
 The
Indenture Trustee shall provide access to the records and documentation in possession of the Indenture Trustee regarding the related Mortgage Loans and REO Property and the servicing thereof to the Noteholders, the FDIC, and the supervisory agents
and examiners of the FDIC, such access being afforded only upon reasonable prior written request and during normal business hours at the office of the Indenture Trustee; provided, however, that, unless otherwise required by law, the Indenture
Trustee shall not be required to provide access to such records and documentation to the Noteholders if the provision thereof would violate the legal right to privacy of any Mortgagor. The Indenture Trustee shall allow representatives of the above
entities to photocopy any of the records and documentation and shall provide equipment for that purpose at a charge that covers the Indenture Trustee’s actual costs. 
  
 The Indenture Trustee shall execute and deliver to the Servicer or the Master Servicer, as applicable based on the
requesting party, any court pleadings, requests for trustee’s sale or other documents necessary or reasonably desirable to (i) the foreclosure or trustee’s sale with respect to a Mortgaged Property; (ii) any legal action brought to obtain
judgment against any Mortgagor on the Mortgage Note or Security Instrument; (iii) obtain a deficiency judgment against the Mortgagor; or (iv) enforce any other rights or remedies provided by the Mortgage Note or Security Instrument or otherwise
available at law or equity. 
  

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 Section III.02 [Reserved] 
  
 Section III.03 Monitoring of Servicer. (01) The Master Servicer shall be responsible for reporting to the Issuer, the
Indenture Trustee and the Depositor the compliance by the Servicer with its duties under the Servicing Agreement. In the review of the Servicer’s activities, the Master Servicer may rely upon an officer’s certificate of the Servicer (or
similar document signed by an officer of the Servicer) with regard to such Servicer’s compliance with the terms of the Servicing Agreement. In the event that the Master Servicer, in its judgment, determines that the Servicer should be
terminated in accordance with the Servicing Agreement, or that a notice should be sent pursuant to the Servicing Agreement with respect to the occurrence of an event that, unless cured, would constitute grounds for such termination, the Master
Servicer shall notify the Depositor, the Issuer and the Indenture Trustee thereof and the Master Servicer shall issue such notice or take such other action as it deems appropriate. 
  
 (02) The Master Servicer, for the benefit of the Issuer, the Indenture Trustee and the Noteholders, shall enforce the
obligations of the Servicer under the Servicing Agreement, and shall, in the event that the Servicer fails to perform its obligations in accordance with the Servicing Agreement, subject to the preceding paragraph, terminate the rights and
obligations of the Servicer thereunder and act as servicer of the related Mortgage Loans or cause the Issuer and the Indenture Trustee to enter in to a new Servicing Agreement with a successor Servicer selected by the Master Servicer; provided,
however, it is understood and acknowledged by the parties hereto that there will be a period of transition (not to exceed 90 days) before the actual servicing functions can be fully transferred to such successor Servicer. Such enforcement,
including, without limitation, the legal prosecution of claims, termination of the Servicing Agreement and the pursuit of other appropriate remedies, shall be in such form and carried out to such an extent and at such time as the Master Servicer, in
its good faith business judgment, would require were it the owner of the related Mortgage Loans. The Master Servicer shall pay the costs of such enforcement at its own expense, provided that the Master Servicer shall not be required to prosecute or
defend any legal action except to the extent that the Master Servicer shall have received reasonable indemnity for its costs and expenses in pursuing such action. 
  
 (03) To the extent that the costs and expenses of the Master Servicer related to any termination of the Servicer,
appointment of a successor Servicer or the transfer and assumption of servicing by the Master Servicer with respect to the Servicing Agreement (including, without limitation, (i) all legal costs and expenses and all due diligence costs and expenses
associated with an evaluation of the potential termination of the Servicer as a result of an event of default by the Servicer and (ii) all costs and expenses associated with the complete transfer of servicing, including all servicing files and all
servicing data and the completion, correction or manipulation of such servicing data as may be required by the successor servicer to correct any errors or insufficiencies in the servicing data or otherwise to enable the successor service to service
the Mortgage Loans in accordance with the Servicing Agreement) are not fully and timely reimbursed by the terminated Servicer, the Master Servicer shall be entitled to reimbursement of such costs and expenses from the Master Servicer Collection
Account. 
  

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 (04) The Master Servicer shall require the Servicer to comply with the remittance requirements and other
obligations set forth in the Servicing Agreement. 
  
 (05) If the
Master Servicer acts as Servicer, it will not assume liability for the representations and warranties of the Servicer, if any, that it replaces. 
  
 (06) In accordance with Section 10.02 of the HomeBanc Servicing Agreement and the provisions of the Special Servicing Agreement, upon the occurrence of a
Servicing Termination Trigger, the Master Servicer shall terminate the Servicer as servicer with respect to each Mortgage Loan that is (i) 60 or more days delinquent, (ii) in bankruptcy and 60 or more days delinquent, (iii) in foreclosure and 60 or
more days delinquent or (iv) an REO Property, and each Mortgage Loan which becomes 60 or more days delinquent on any future Payment Date (each such Mortgage Loan, a “Specially Serviced Mortgage Loan”) and shall cause the Servicer to
transfer the servicing with respect to each such Mortgage Loan to the Special Servicer in accordance with the terms of the Special Servicing Agreement. Anything to the contrary in this Agreement notwithstanding, from and after the Effective Date (as
defined in the Special Servicing Agreement) with respect to the first occurrence of a transfer of servicing of any Specially Serviced Mortgage Loan, all references in this Agreement to (x) “the Servicer” shall be deemed to include each of
HomeBanc Corp. as servicer under the HomeBanc Servicing Agreement and the Special Servicer, as servicer under the Special Servicing Agreement, (y) “the Servicing Agreement” shall refer to each of the HomeBanc Servicing Agreement and the
Special Servicing Agreement and (z) the “Mortgage Loans” shall mean, with respect to the Servicer, the Mortgage Loans other than the Specially Serviced Mortgage Loans, and with respect to the Special Servicer, the Specially Serviced
Mortgage Loans; with the result that the Master Servicer shall master service in accordance with the provisions of this Agreement, the servicing of the Mortgage Loans, other than the Specially Serviced Mortgage Loans, by the Servicer and the
servicing of the Specially Serviced Mortgage Loans by the Special Servicer. 
  
 Section III.04 Fidelity Bond. The Master Servicer, at its expense, shall maintain in effect a blanket fidelity bond and an errors and omissions insurance policy, affording coverage with respect to all
directors, officers, employees and other Persons acting on such Master Servicer’s behalf, and covering errors and omissions in the performance of the Master Servicer’s obligations hereunder. The errors and omissions insurance policy and
the fidelity bond shall be in such form and amount generally acceptable for entities serving as master servicers or trustees. 
  
 Section III.05 Power to Act; Procedures. The Master Servicer shall master service the Mortgage Loans and shall have full power and authority to do
any and all things that it may deem necessary or desirable in connection with the master servicing and administration of the Mortgage Loans, including but not limited to the power and authority (i) to execute and deliver, on behalf of the Issuer,
Noteholders and the Indenture Trustee, customary consents or waivers and other instruments and documents, (ii) to consent to transfers of any Mortgaged Property and assumptions of the Mortgage Notes and related Mortgages, (iii) to collect any
Insurance Proceeds and Liquidation Proceeds, and (iv) to effectuate foreclosure or other conversion of the ownership of the Mortgaged Property securing any Mortgage Loan, in each case, in accordance with the provisions of this Agreement and the
Servicing Agreement, as applicable. The Indenture Trustee shall furnish the Master Servicer, upon written request from a Servicing Officer, with any powers of attorney 
  

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 empowering the Master Servicer or the Servicer to execute and deliver instruments of satisfaction or cancellation, or of
partial or full release or discharge, and to foreclose upon or otherwise liquidate Mortgaged Property, and to appeal, prosecute or defend in any court action relating to the Mortgage Loans or the Mortgaged Property, in accordance with the Servicing
Agreement and this Agreement, and the Indenture Trustee shall execute and deliver such other documents, as the Master Servicer may request, to enable the Master Servicer to master service and administer the Mortgage Loans and carry out its duties
hereunder, in each case in accordance with Accepted Master Servicing Practices (and the Indenture Trustee shall have no liability for use or misuse of any such powers of attorney by the Master Servicer or the Servicer). If the Master Servicer or the
Indenture Trustee has been advised that it is likely that the laws of the state in which action is to be taken prohibit such action if taken in the name of the Indenture Trustee or that the Indenture Trustee would be adversely affected under the
“doing business” or tax laws of such state if such action is taken in its name, the Master Servicer shall join with the Indenture Trustee in the appointment of a co-trustee pursuant to Section 6.10 of the Indenture. In the performance of
its duties hereunder, the Master Servicer shall be an independent contractor and shall not, except in those instances where it is taking action in the name of the Issuer or the Indenture Trustee, be deemed to be the agent of the Issuer or the
Indenture Trustee. 
  
 Section III.06 Due-on-Sale Clauses;
Assumption Agreements. To the extent provided in the Servicing Agreement, to the extent Mortgage Loans contain enforceable due-on-sale clauses, the Master Servicer shall cause the Servicer to enforce such clauses in accordance with the Servicing
Agreement. If applicable law prohibits the enforcement of a due-on-sale clause or such clause is otherwise not enforced in accordance with the Servicing Agreement, and, as a consequence, a Mortgage Loan is assumed, the original Mortgagor may be
released from liability in accordance with the Servicing Agreement. 
  
 Section III.07 Release of Mortgage Files. (01) Upon becoming aware of the payment in full of any Mortgage Loan, or the receipt by the Servicer of a notification that payment in full has been escrowed in a manner customary for such
purposes for payment to Noteholders on the next Payment Date, the Servicer will, if required under the Servicing Agreement, promptly furnish to the Indenture Trustee two copies of a certification substantially in the form of Exhibit B hereto signed
by a Servicing Officer or in a mutually agreeable electronic format which will, in lieu of a signature on its face, originate from a Servicing Officer (which certification shall include a statement to the effect that all amounts received in
connection with such payment that are required to be deposited in the Protected Account maintained by the Servicer pursuant to the Servicing Agreement have been so deposited) and shall request that the Indenture Trustee deliver or cause the
Custodian to deliver to the Servicer the related Mortgage File. Upon receipt of such certification and request, the Indenture Trustee shall promptly release or cause the Custodian to release the related Mortgage File to the Servicer and the
Indenture Trustee shall have no further responsibility with regard to such Mortgage File. Upon any such payment in full, the Servicer is authorized, to give, as agent for the Indenture Trustee, as the mortgagee under the Mortgage that secured the
Mortgage Loan, an instrument of satisfaction (or assignment of mortgage without recourse) regarding the Mortgaged Property subject to the Mortgage, which instrument of satisfaction or assignment, as the case may be, shall be delivered to the Person
or Persons entitled thereto against receipt therefor of such payment, it being understood and agreed that no expenses incurred in connection with such instrument of satisfaction or assignment, as the case may be, shall be chargeable to the Protected
Account. 
  

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 (02) From time to time and as appropriate for the servicing or foreclosure of any Mortgage Loan and in
accordance with the Servicing Agreement, the Indenture Trustee shall execute such documents as shall be prepared and furnished to the Indenture Trustee by the Servicer or the Master Servicer (in form reasonably acceptable to the Indenture Trustee)
and as are necessary to the prosecution of any such proceedings. The Indenture Trustee shall, upon the request of the Servicer or the Master Servicer, and delivery to the Indenture Trustee, of two copies of a request for release signed by a
Servicing Officer substantially in the form of Exhibit B (or in a mutually agreeable electronic format which will, in lieu of a signature on its face, originate from a Servicing Officer), release or cause the Custodian to release the related
Mortgage File held in its or the Custodian’s possession or control to the Servicer or the Master Servicer, as applicable. The Servicer or the Master Servicer shall be obligated to return the Mortgage File to the Indenture Trustee or the
Custodian when the need therefor by the Servicer or the Master Servicer, as it reasonably determines, no longer exists unless the Mortgage Loan shall be liquidated, in which case, upon receipt of a certificate of a Servicing Officer similar to that
hereinabove specified, the Mortgage File shall be released by the Indenture Trustee or the Custodian to the Servicer or the Master Servicer. 
  
 Section III.08 Documents, Records and Funds in Possession of Master Servicer To Be Held for Issuer and Indenture Trustee. 
  
 (01) The Master Servicer shall transmit and the Servicer (to the extent
required by the Servicing Agreement) shall transmit to the Indenture Trustee such documents and instruments coming into the possession of the Master Servicer or the Servicer from time to time as are required by the terms hereof, or in the case of
the Servicer, the Servicing Agreement, to be delivered to the Indenture Trustee. Any funds received by the Master Servicer or by the Servicer in respect of any Mortgage Loan or which otherwise are collected by the Master Servicer or by the Servicer
as Liquidation Proceeds or Insurance Proceeds in respect of any Mortgage Loan shall be held for the benefit of the Issuer and the Indenture Trustee subject to the Master Servicer’s right to retain or withdraw from the Master Servicer Collection
Account the Master Servicing Compensation and other amounts provided in this Agreement and the right of the Servicer to retain its Servicing Fee (and, if the Special Servicer is servicing such Mortgage Loan, the Special Servicing Fee) and other
amounts as provided in the Servicing Agreement. The Master Servicer shall, and (to the extent provided in the Servicing Agreement) shall cause the Servicer to, provide access to information and documentation regarding the Mortgage Loans to the
Issuer, the Indenture Trustee, and their respective agents and accountants at any time upon reasonable request and during normal business hours, and to Noteholders that are savings and loan associations, banks or insurance companies, the Office of
Thrift Supervision, the FDIC and the supervisory agents and examiners of such Office and Corporation or examiners of any other federal or state banking or insurance regulatory authority if so required by applicable regulations of the Office of
Thrift Supervision or other regulatory authority, such access to be afforded without charge but only upon reasonable request in writing and during normal business hours at the offices of the Master Servicer designated by it. In fulfilling such a
request the Master Servicer shall not be responsible for determining the sufficiency of such information. 
  
 (02) All Mortgage Files and funds collected or held by, or under the control of, the Master Servicer, in respect of any Mortgage Loans, whether from the
collection of principal and interest payments or from Liquidation Proceeds or Insurance Proceeds, shall be held by the Master Servicer for and on behalf of the Issuer, the Indenture Trustee and the Noteholders and shall be and remain the 

 

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 sole and exclusive property of the Issuer, subject to the pledge to the Indenture Trustee; provided, however, that the
Master Servicer and the Servicer shall be entitled to setoff against, and deduct from, any such funds any amounts that are properly due and payable to the Master Servicer or the Servicer under this Agreement or the Servicing Agreement. 

 
 Section III.09 Standard Hazard Insurance and Flood Insurance
Policies. 
  
 (01) For each Mortgage Loan, the Master
Servicer shall enforce any obligation of the Servicer under the Servicing Agreement to maintain or cause to be maintained standard fire and casualty insurance and, where applicable, flood insurance, all in accordance with the provisions of the
Servicing Agreement. It is understood and agreed that such insurance shall be with insurers meeting the eligibility requirements set forth in the Servicing Agreement and that no earthquake or other additional insurance is to be required of any
Mortgagor or to be maintained on property acquired in respect of a defaulted loan, other than pursuant to such applicable laws and regulations as shall at any time be in force and as shall require such additional insurance. 
  
 (02) Pursuant to Section 4.01 and 4.02, any amounts collected by the Servicer
or the Master Servicer, under any insurance policies (other than amounts to be applied to the restoration or repair of the property subject to the related Mortgage or released to the Mortgagor in accordance with the Servicing Agreement) shall be
deposited into the Master Servicer Collection Account, subject to withdrawal pursuant to Section 4.02 and 4.03. Any cost incurred by the Master Servicer or the Servicer in maintaining any such insurance if the Mortgagor defaults in its obligation to
do so shall be added to the amount owing under the Mortgage Loan where the terms of the Mortgage Loan so permit; provided, however, that the addition of any such cost shall not be taken into account for purposes of calculating the distributions to
be made to Noteholders and shall be recoverable by the Master Servicer or such Servicer pursuant to Section 4.02 and 4.03. 
  
 Section III.10 Presentment of Claims and Collection of Proceeds. The Master Servicer shall (to the extent provided in the Servicing Agreement)
cause the Servicer to prepare and present on behalf of the Issuer, the Indenture Trustee and the Noteholders all claims under the Insurance Policies and take such actions (including the negotiation, settlement, compromise or enforcement of the
insured’s claim) as shall be necessary to realize recovery under such policies. Any proceeds disbursed to the Master Servicer (or disbursed to the Servicer and remitted to the Master Servicer) in respect of such policies, bonds or contracts
shall be promptly deposited in the Master Servicer Collection Account upon receipt, except that any amounts realized that are to be applied to the repair or restoration of the related Mortgaged Property as a condition precedent to the presentation
of claims on the related Mortgage Loan to the insurer under any applicable Insurance Policy need not be so deposited (or remitted). 
  
 Section III.11 Maintenance of the Primary Mortgage Insurance Policies. 
  
 (01) The Master Servicer shall not take, or permit the Servicer (to the extent such action is prohibited under the Servicing
Agreement) to take, any action that would result in noncoverage under any applicable Primary Mortgage Insurance Policy of any loss which, but for the actions of the Master Servicer or the Servicer, would have been covered thereunder. The Master
Servicer shall use its best reasonable efforts to cause the Servicer (to the extent required under the Servicing Agreement) to 
  

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 keep in force and effect (to the extent that the Mortgage Loan requires the Mortgagor to maintain such insurance),
primary mortgage insurance applicable to each Mortgage Loan in accordance with the provisions of this Agreement and the Servicing Agreement, as applicable. The Master Servicer shall not, and shall not permit the Servicer (to the extent required
under the Servicing Agreement) to, cancel or refuse to renew any such Primary Mortgage Insurance Policy that is in effect at the date of the initial issuance of the Mortgage Note and is required to be kept in force hereunder except in accordance
with the provisions of this Agreement and the Servicing Agreement, as applicable. 
  
 (02) The Master Servicer agrees to present, or to cause the Servicer (to the extent required under the Servicing Agreement) to present, on behalf of the Issuer, the Indenture Trustee and the Noteholders, claims to the
insurer under any Primary Mortgage Insurance Policies and, in this regard, to take such reasonable action as shall be necessary to permit recovery under any Primary Mortgage Insurance Policies respecting defaulted Mortgage Loans. Pursuant to Section
4.01 and 4.02, any amounts collected by the Master Servicer or the Servicer under any Primary Mortgage Insurance Policies shall be deposited in the Master Servicer Collection Account, subject to withdrawal pursuant to Sections 4.02 and 4.03.

  
 Section III.12 Indenture Trustee to Retain Possession of
Certain Insurance Policies and Documents. 
  
 The Indenture
Trustee shall retain or shall cause the Custodian to retain possession and custody of the originals (to the extent available) of any Primary Mortgage Insurance Policies, or certificate of insurance if applicable, and any certificates of renewal as
to the foregoing as may be issued from time to time as contemplated by this Agreement. Until all amounts distributable in respect of the Notes have been distributed in full and the Indenture has been satisfied and discharged in accordance with
Section 4.10 of the Indenture, the Indenture Trustee shall also retain, or shall cause the Custodian to retain, possession and custody of each Mortgage File in accordance with and subject to the terms and conditions of this Agreement. The Master
Servicer shall promptly deliver or cause to be delivered to the Indenture Trustee upon the execution or receipt thereof the originals of any Primary Mortgage Insurance Policies, any certificates of renewal, and such other documents or instruments
that constitute portions of the Mortgage File that come into the possession of the Master Servicer from time to time. 
  
 Section III.13 Realization Upon Defaulted Mortgage Loans. For each Mortgage Loan that comes into and continues in default and as to which no
satisfactory arrangements can be made for collection of delinquent payments, the Master Servicer shall cause the Servicer (to the extent required under the Servicing Agreement) to either (i) foreclose upon, repossess or otherwise comparably convert
the ownership of Mortgaged Properties securing such Mortgage Loans, all in accordance with the Servicing Agreement or (ii) as an alternative to foreclosure, sell such defaulted Mortgage Loans at fair market value to third-parties, if the Servicer
reasonably believes that such sale would maximize proceeds to the Trust (on a present value basis) with respect to those Mortgage Loans. The Servicer shall be responsible for all costs and expenses incurred by it in any such proceedings or sale;
provided, however, that such costs and expenses will be recoverable as servicing advances by the Servicer as contemplated in Section 4.05. 
  

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 Section III.14 Compensation for the Master Servicer. 
  
 On each Payment Date the Master Servicer will be entitled to all income and
gain realized from any investment of funds in the Master Servicer Collection Account and the Payment Account, pursuant to Article IV, for the performance of its activities hereunder (the “Master Servicer Compensation”). Servicing
compensation in the form of assumption fees, if any, late payment charges, as collected, if any, or otherwise (but not including any prepayment premium or penalty) shall be retained by the Servicer and shall not be deposited in the Protected
Account. The Master Servicer shall be required to pay all expenses incurred by it in connection with its activities hereunder and shall not be entitled to reimbursement therefor except as provided in this Agreement. 
  
 Section III.15 REO Property. 
  
 (01) In the event the Trust Estate acquires ownership of any REO Property in
respect of any related Mortgage Loan, the deed or certificate of sale shall be issued to the Indenture Trustee, or to its nominee, on behalf of the Noteholders. The Master Servicer shall, to the extent provided in the Servicing Agreement, cause the
Servicer to sell any REO Property as expeditiously as possible and in accordance with the provisions of the Servicing Agreement, as applicable. Pursuant to its efforts to sell such REO Property, the Master Servicer shall cause the the Servicer to
protect and conserve, such REO Property in the manner and to the extent required by the Servicing Agreement. 
  
 (02) The Master Servicer shall, to the extent required by the Servicing Agreement, cause the Servicer to deposit all funds collected and received in
connection with the operation of any REO Property in the Protected Account. 
  
 (03) The Master Servicer and the Servicer, upon the final disposition of any REO Property, shall be entitled to reimbursement for any related unreimbursed Monthly Advances and other unreimbursed advances as well as
any unpaid Servicing Fees (and, in the case of the Special Servicer, the Special Servicing Fees, if any) from Liquidation Proceeds received in connection with the final disposition of such REO Property; provided, that any such unreimbursed Monthly
Advances as well as any unpaid Servicing Fees (and, in the case of the Special Servicer, the Special Servicing Fees, if any) may be reimbursed or paid, as the case may be, prior to final disposition, out of any net rental income or other net amounts
derived from such REO Property. 
  
 (04) To the extent provided in
the Servicing Agreement, the Liquidation Proceeds from the final disposition of the REO Property, net of any payment to the Master Servicer and the Servicer as provided above shall be deposited in the Protected Account on or prior to the
Determination Date in the month following receipt thereof and be remitted by wire transfer in immediately available funds to the Master Servicer for deposit into the related Master Servicer Collection Account on the next succeeding Servicer
Remittance Date. 
  

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 Section III.16 Annual Officer’s Certificate as to Compliance. 
  
 (01) The Master Servicer shall deliver to the Issuer, the Indenture Trustee
and the Rating Agencies on or before March 1 of each year, commencing on March 1, 2005, an Officer’s Certificate, certifying that with respect to the period ending December 31 of the prior year: (i) such Servicing Officer has reviewed the
activities of such Master Servicer during the preceding calendar year or portion thereof and its performance under this Agreement, (ii) to the best of such Servicing Officer’s knowledge, based on such review, such Master Servicer has performed
and fulfilled its duties, responsibilities and obligations under this Agreement in all material respects throughout such year, or, if there has been a default in the fulfillment of any such duties, responsibilities or obligations, specifying each
such default known to such Servicing Officer and the nature and status thereof, (iii) nothing has come to the attention of such Servicing Officer to lead such Servicing Officer to believe that the Servicer has failed to perform any of its duties,
responsibilities and obligations under the Servicing Agreement in all material respects throughout such year, or, if there has been a material default in the performance or fulfillment of any such duties, responsibilities or obligations, specifying
each such default known to such Servicing Officer and the nature and status thereof. 
  
 (02) Copies of such statements shall be provided to any Noteholder upon request, by the Master Servicer or by the Indenture Trustee at the Master Servicer’s expense if the Master Servicer failed to provide such
copies (unless (i) the Master Servicer shall have failed to provide the Indenture Trustee with such statement or (ii) the Indenture Trustee shall be unaware of the Master Servicer’s failure to provide such statement). 
  
 Section III.17 Annual Independent Accountant’s Servicing Report.
If the Master Servicer has, during the course of any fiscal year, directly serviced any of the Mortgage Loans, then the Master Servicer at its expense shall cause a nationally recognized firm of independent certified public accountants to furnish a
statement to the Issuer, the Indenture Trustee, the Rating Agencies and the Depositor on or before March 1 of each year, commencing on March 1, 2005 to the effect that, with respect to the most recently ended fiscal year, such firm has examined
certain records and documents relating to the Master Servicer’s performance of its servicing obligations under this Agreement and pooling and servicing and trust agreements in material respects similar to this Agreement and to each other and
that, on the basis of such examination conducted substantially in compliance with the audit program for mortgages serviced for Freddie Mac or the Uniform Single Attestation Program for Mortgage Bankers, such firm is of the opinion that the Master
Servicer’s activities have been conducted in compliance with this Agreement, or that such examination has disclosed no material items of noncompliance except for (i) such exceptions as such firm believes to be immaterial, (ii) such other
exceptions as are set forth in such statement and (iii) such exceptions that the Uniform Single Attestation Program for Mortgage Bankers or the Audit Program for Mortgages Serviced by Freddie Mac requires it to report. Copies of such statements
shall be provided to any Noteholder upon request by the Master Servicer, or by the Indenture Trustee at the expense of the Master Servicer if the Master Servicer shall fail to provide such copies. If such report discloses exceptions that are
material, the Master Servicer shall advise the Indenture Trustee whether such exceptions have been or are susceptible of cure, and will take prompt action to do so. 
  
 Section III.18 Reports Filed with Securities and Exchange Commission. Within 15 days after each Payment Date, the
Securities Administrator shall, in accordance with industry standards, file 
  

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 with the Commission via the Electronic Data Gathering and Retrieval System (“EDGAR”), a Form 8-K (or other
comparable Form containing the same or comparable information or other information mutually agreed upon) with a copy of the statement to the Noteholders for such Payment Date as an exhibit thereto. Prior to January 30 in any year, the Securities
Administrator shall, in accordance with industry standards and only if instructed by the Depositor, file a Form 15 Suspension Notice with respect to the Trust Estate, if applicable. Prior to (i) March 15, 2005 and (ii) unless and until a Form 15
Suspension Notice shall have been filed, prior to March 15 of each year thereafter, the Master Servicer shall provide the Securities Administrator with a Master Servicer Certification, together with a copy of the annual independent accountant’s
servicing report and annual statement of compliance of the Servicer, in each case, required to be delivered pursuant to the Servicing Agreement, and, if applicable, the annual independent accountant’s servicing report and annual statement of
compliance to be delivered by the Master Servicer pursuant to Sections 3.16 and 3.17. Prior to (i) March 31, 2005, or such earlier filing date as may be required by the Commission, and (ii) unless and until a Form 15 Suspension Notice shall have
been filed, March 31 of each year thereafter, or such earlier filing date as may be required by the Commission, the Securities Administrator shall file a Form 10-K, in substance conforming to industry standards, with respect to the Trust. Such Form
10-K shall include the Master Servicer Certification and other documentation provided by the Master Servicer pursuant to the second preceding sentence. The Depositor hereby grants to the Securities Administrator a limited power of attorney to
execute and file each such document on behalf of the Depositor. Such power of attorney shall continue until either the earlier of (i) receipt by the Securities Administrator from the Depositor of written termination of such power of attorney and
(ii) the termination of the Trust Estate. The Depositor agrees to promptly furnish to the Securities Administrator, from time to time upon request, such further information, reports and financial statements within its control related to this
Agreement and the Mortgage Loans as the Securities Administrator reasonably deems appropriate to prepare and file all necessary reports with the Commission. The Securities Administrator shall have no responsibility to file any items other than those
specified in this Section 3.18; provided, however, the Securities Administrator will cooperate with the Depositor and the Issuer in connection with any additional filings with respect to the Trust Estate as the Depositor deems necessary under the
Securities Exchange Act of 1934, as amended (the “Exchange Act”). Fees and expenses incurred by the Securities Administrator in connection with this Section 3.18 shall not be reimbursable from the Trust Estate. 
  
 Section III.19 The Company. On the Closing Date, the Company will
receive from the Depositor a payment of $5,000. 
  
 Section III.20
UCC. The Depositor shall inform the Indenture Trustee in writing of any Uniform Commercial Code financing statements that were filed on the Closing Date in connection with the Trust Estate with stamped recorded copies of such financing
statements to be delivered to the Indenture Trustee promptly upon receipt by the Depositor. If directed by the Depositor in writing, the Indenture Trustee will execute any continuation statements and deliver them as directed solely at the expense of
the Depositor. The Depositor shall file any financing statements or amendments thereto required by any change in the Uniform Commercial Code. 
  

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 Section III.21 Optional Purchase of Defaulted Mortgage Loans. 
  
 (01) With respect to any Mortgage Loan which as of the first day of a
Calendar Quarter is delinquent in payment by 90 days or more or is an REO Property, the Servicer (which, notwithstanding Section 3.03(f), for purposes of this Section shall only refer to HomeBanc and not the Special Servicer) shall have the right to
purchase such Mortgage Loan from the Trust Estate at a price equal to the Repurchase Price; provided however (i) that such Mortgage Loan is still 90 days or more delinquent or is an REO Property as of the date of such purchase and (ii) this purchase
option, if not theretofore exercised, shall terminate on the date prior to the last day of the related Calendar Quarter. This purchase option, if not exercised, shall not be thereafter reinstated unless the delinquency is cured and the Mortgage Loan
thereafter again becomes 90 days or more delinquent or becomes an REO Property, in which case the option shall again become exercisable as of the first day of the related Calendar Quarter. 
  
 (02) If at any time the Servicer remits to the Master Servicer a payment for
deposit in the Master Servicer Collection Account covering the amount of the Repurchase Price for such a Mortgage Loan, and the Master Servicer provides to the Indenture Trustee a certification signed by a Servicing Officer stating that the amount
of such payment has been deposited in the Master Servicer Collection Account, then the Indenture Trustee shall execute the assignment of such Mortgage Loan to the Servicer, without recourse, representation or warranty and the Servicer shall succeed
to all of the Indenture Trustee’s right, title and interest in and to such Mortgage Loan, and all security and documents relative thereto. Such assignment shall be an assignment outright and not for security. The Servicer will thereupon own
such Mortgage, and all such security and documents, free of any further obligation to the Issuer, the Indenture Trustee or the Noteholders with respect thereto. 
  

Section III.22 Monthly Advances. If the Scheduled Payment on a Mortgage Loan that was due on a related Due Date is delinquent other than as a
result of application of the Relief Act and for which the Servicer was required to make an advance pursuant to the Servicing Agreement exceeds the amount deposited in the Master Servicer Collection Account which will be used for an advance with
respect to such Mortgage Loan, the Master Servicer will deposit in the Master Servicer Collection Account not later than the Payment Account Deposit Date immediately preceding the related Payment Date an amount equal to such deficiency, net of the
Servicing Fee (and, if the Special Servicer is servicing such Mortgage Loan, the Special Servicing Fee) for such Mortgage Loan except to the extent the Master Servicer determines any such advance to be a Nonrecoverable Advance. Subject to the
foregoing, the Master Servicer shall continue to make such advances through the date that the Servicer is required to do so under the Servicing Agreement. If the Master Servicer deems an advance to be a Nonrecoverable Advance, on the Payment Account
Deposit Date, the Master Servicer shall present an Officer’s Certificate to the Indenture Trustee (i) stating that the Master Servicer elects not to make a Monthly Advance in a stated amount and (ii) detailing the reason it deems the advance to
be a Nonrecoverable Advance. 
  
 Section III.23 Compensating
Interest Payments. The Master Servicer shall deposit in the Master Servicer Collection Account not later than each Payment Account Deposit Date an amount equal to the lesser of (i) the sum of the aggregate amounts required to be paid by the
Servicer under the Servicing Agreement with respect to subclauses (a) and (b) of the definition of Interest Shortfalls with respect to the Mortgage Loans for the related Prepayment Period, and not so paid by the Servicer and (ii) the Master Servicer
Compensation for such Payment Date (such amount, the “Compensating Interest Payment”). The Master Servicer shall not be entitled to any reimbursement of any Compensating Interest Payment. 
  

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 ARTICLE IV 
 Accounts 
  
 Section IV.01
Protected Accounts. (01) The Master Servicer shall enforce the obligation of the Servicer to establish and maintain a Protected Account in accordance with the Servicing Agreement, with records to be kept with respect thereto on a Mortgage
Loan by Mortgage Loan basis, into which account shall be deposited within 48 hours (or as of such other time specified in the Servicing Agreement) of receipt, all collections of principal and interest on any Mortgage Loan and any REO Property
received by the Servicer, including Principal Prepayments, Insurance Proceeds, Liquidation Proceeds, and advances made from the Servicer’s own funds (less servicing compensation as permitted by the Servicing Agreement in the case of the
Servicer) and all other amounts to be deposited in the Protected Account. The Servicer is hereby authorized to make withdrawals from and deposits to the Protected Account for purposes required or permitted by this Agreement. To the extent provided
in the Servicing Agreement, the Protected Account shall be held by a Designated Depository Institution and segregated on the books of such institution in the name of the Indenture Trustee for the benefit of the Noteholders. 
  
 (02) To the extent provided in the Servicing Agreement, amounts on deposit in
the Protected Account may be invested in Permitted Investments in the name of the Indenture Trustee for the benefit of Noteholders and, except as provided in the preceding paragraph, not commingled with any other funds. Such Permitted Investments
shall mature, or shall be subject to redemption or withdrawal, no later than the date on which such funds are required to be withdrawn for deposit in the Master Servicer Collection Account, and shall be held until required for such deposit. The
income earned from Permitted Investments made pursuant to this Section 4.01 shall be paid to the Servicer under the Servicing Agreement, and the risk of loss of moneys required to be distributed to the Noteholders resulting from such investments
shall be borne by and be the risk of the Servicer. The Servicer (to the extent required by the Servicing Agreement) shall deposit the amount of any such loss in the Protected Account within two Business Days of receipt of notification of such loss
but not later than the second Business Day prior to the Payment Date on which the moneys so invested are required to be distributed to the Noteholders. 
  
 (03) To the extent required by the Servicing Agreement and subject to this Article IV, on or before each Servicer Remittance Date, the Servicer shall
withdraw or shall cause to be withdrawn from its Protected Account and shall immediately deposit or cause to be deposited in the Master Servicer Collection Account amounts representing the following collections and payments (other than with respect
to principal of or interest on the Mortgage Loans due on or before the Cut-off Date): 
  
 (01) Scheduled Payments on the Mortgage Loans received or any related portion thereof advanced by the Servicer pursuant to the Servicing Agreement which were due on or before the related Due Date, net of the amount
thereof comprising the Servicing Fee (and, if the Special Servicer is servicing such Mortgage Loan, the Special Servicing Fee) or any fees with respect to any lender-paid primary mortgage insurance policy; 
  
 (02) Principal Prepayments in full and any Liquidation Proceeds received by
the Servicer with respect to the Mortgage Loans in the related Prepayment Period, with interest to the date of prepayment or liquidation, net of the amount thereof comprising the Servicing Fee (and, if the Special Servicer is servicing such Mortgage
Loan, the Special Servicing Fee); 
  

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 (03) Principal Prepayments in part received by the Servicer for the Mortgage Loans in the related
Prepayment Period; and 
  
 (04) Any amount to be used as a Monthly
Advance. 
  
 (04) Withdrawals may be made from the Protected
Account only to make remittances as provided in Section 4.01(c), 4.02 and 4.03; to reimburse the Master Servicer or the Servicer for Monthly Advances which have been recovered by subsequent collections from the related Mortgagor; to remove amounts
deposited in error; to remove fees, charges or other such amounts deposited on a temporary basis; or to clear and terminate the account at the termination of this Agreement in accordance with Section 7.10. As provided in Sections 4.01(a) and 4.02(b)
certain amounts otherwise due to the Servicer may be retained by it and need not be deposited in the Master Servicer Collection Account. 
  
 Section IV.02 Master Servicer Collection Account. (01) The Master Servicer shall establish and maintain in the name of the Indenture Trustee, for
the benefit of the Noteholders, the Master Servicer Collection Account as a segregated trust account or accounts. The Master Servicer Collection Account shall be an Eligible Account. The Master Servicer will deposit in the Master Servicer Collection
Account as identified by the Master Servicer and as received by the Master Servicer, the following amounts: 
  
 (01) Any amounts withdrawn from the Protected Account; 
  
 (02) Any Monthly Advance and any Compensating Interest Payments; 
  

(03) Any Insurance Proceeds or Net Liquidation Proceeds received by or on behalf of the Master Servicer or which were not deposited in the Protected
Account; 
  
 (04) The Repurchase Price with respect to any
Mortgage Loans purchased by the Seller pursuant to the Mortgage Loan Purchase Agreement or Sections 2.02 or 2.03 hereof, any amounts which are to be treated pursuant to Section 2.04 of this Agreement as the payment of a Repurchase Price in
connection with the tender of a Substitute Mortgage Loan by the Seller and the Repurchase Price with respect to any Mortgage Loans purchased by the Servicer pursuant to Section 3.21; 
  
 (05) Any amounts required to be deposited with respect to losses on investments of deposits in the Master Servicer
Collection Account or Payment Account; and 
  
 (06) Any other
amounts received by or on behalf of the Master Servicer and required to be deposited in the Master Servicer Collection Account pursuant to this Agreement. 
  
 (02) All amounts deposited to the Master Servicer Collection Account shall be held by the Master Servicer in the name of the Indenture Trustee in trust
for the benefit of the Noteholders in 
  

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 accordance with the terms and provisions of this Agreement and the Indenture. The requirements for crediting the Master
Servicer Collection Account or the Payment Account shall be exclusive, it being understood and agreed that, without limiting the generality of the foregoing, payments in the nature of (i) prepayment or late payment charges or assumption, tax
service, statement account or payoff, substitution, satisfaction, release and other like fees and charges and (ii) the items enumerated in Subsections 4.05(a)(i), (ii), (iii), (iv), (vi), (vii), (viii), (ix), (x), (xi) and (xii), need not be
credited by the Master Servicer or the Servicer to the Master Servicer Collection Account or remitted by the Master Servicer or Servicer to the Indenture Trustee for deposit in the Payment Account, as applicable. In the event that the Master
Servicer shall remit or cause to be remitted to the Indenture Trustee for deposit to the Payment Account any amount not required to be credited thereto, the Indenture Trustee, upon receipt of a written request therefor signed by a Servicing Officer
of the Master Servicer, shall promptly transfer such amount to the Master Servicer, any provision herein to the contrary notwithstanding. 
  
 (03) The amount at any time credited to the Master Servicer Collection Account may be invested, in the name of the Indenture Trustee, or its nominee, for
the benefit of the Noteholders, in Permitted Investments as directed by Master Servicer. All Permitted Investments shall mature or be subject to redemption or withdrawal on or before, and shall be held until, the next succeeding Payment Account
Deposit Date. Any and all investment earnings on amounts on deposit in the Master Servicer Account from time to time shall be for the account of the Master Servicer. The Master Servicer from time to time shall be permitted to withdraw or receive
distribution of any and all investment earnings from the Master Servicer Account. The risk of loss of moneys required to be distributed to the Noteholders resulting from such investments shall be borne by and be the risk of the Master Servicer. The
Master Servicer shall deposit the amount of any such loss in the Master Servicer Collection Account within two Business Days of receipt of notification of such loss but not later than the second Business Day prior to the Payment Date on which the
moneys so invested are required to be distributed to the Noteholders. 
  
 Section IV.03 Permitted Withdrawals and Transfers from the Master Servicer Collection Account. (01) The Master Servicer will, from time to time on demand of the Servicer or the Securities Administrator, make or cause to be made such
withdrawals or transfers from the Master Servicer Collection Account as the Master Servicer has designated for such transfer or withdrawal pursuant to this Agreement and the Servicing Agreement. The Master Servicer may clear and terminate the Master
Servicer Collection Account pursuant to Section 7.10 and remove amounts from time to time deposited in error. 
  
 (02) On an ongoing basis, the Master Servicer shall withdraw from the Master Servicer Collection Account (i) any expenses, costs and liabilities
recoverable by the Master Servicer or the Securities Administrator pursuant to Sections 3.03 and 5.04 hereof and Section 6.07 of the Indenture and (ii) any amounts payable to the Master Servicer as set forth in Section 3.14; provided however, that
the Master Servicer shall be obligated to pay from its own funds any amounts which it is required to pay under Section 5.03(a). 
  
 (03) In addition, on or before each Payment Account Deposit Date, the Master Servicer shall deposit in the Payment Account any Monthly Advances required
to be made by the Master Servicer with respect to the Mortgage Loans. 
  

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 (04) No later than 3:00 p.m. New York time on each Payment Account Deposit Date, the Securities
Administrator will transfer all Available Funds on deposit in the Master Servicer Collection Account with respect to the related Payment Date to the Indenture Trustee for deposit in the Payment Account. 
  
 Section IV.04 Payment Account. (01) The Indenture Trustee shall
establish and maintain in the name of the Indenture Trustee, for the benefit of the Noteholders, the Payment Account as a segregated trust account or accounts. 
  

(02) All amounts deposited to the Payment Account shall be held by the Indenture Trustee in the name of the Indenture Trustee in trust for the benefit
of the Noteholders in accordance with the terms and provisions of this Agreement. 
  
 (03) The Payment Account shall constitute a non-interest bearing trust account of the Trust Estate segregated on the books of the Indenture Trustee and held by the Indenture Trustee in trust, and the Payment Account
and the funds deposited therein shall not be subject to, and shall be protected from, all claims, liens, and encumbrances of any creditors or depositors of the Indenture Trustee (whether made directly, or indirectly through a liquidator or receiver
of the Indenture Trustee). The Payment Account shall be an Eligible Account. The amount at any time credited to the Payment Account shall be held in cash and fully insured by the FDIC to the maximum coverage provided thereby. 
  
 (04) The amount at any time credited to the Payment Account shall be (i) held
in cash and fully insured by the FDIC to the maximum coverage provided thereby or (ii) invested, in the name of the Indenture Trustee, for the benefit of the Noteholders, in Permitted Investments as directed by Master Servicer. All Permitted
Investments shall mature or be subject to redemption or withdrawal on or before, and shall be held until, the next succeeding Payment Date if the obligor for such Permitted Investment is the Indenture Trustee, or if such obligor is any other Person,
the Business Day preceding such Payment Date. All investment earnings on amounts on deposit in the Payment Account or benefit from funds uninvested therein from time to time shall be for the account of the Master Servicer. The Indenture Trustee
shall remit all investment earnings from the Payment Account to the Master Servicer on each Payment Date. If there is any loss on a Permitted Investment, the Master Servicer shall remit the amount of the loss to the Indenture Trustee who shall
deposit such amount in the Payment Account. 
  
 (05) The Indenture
Trustee or its Affiliates are permitted to receive additional compensation that could be deemed to be in the Indenture Trustee’s economic self-interest for (i) servicing as investment advisor, administrator, shareholder, servicing agent,
custodian or sub-custodian with respect to certain of the Permitted Investments, (ii) using Affiliates to effect transactions in certain Permitted Investments and (iii) effecting transactions in certain Permitted Investments. Such compensation shall
not be considered an amount that is reimbursable or payable pursuant to Section 4.05. 
  
 Section IV.05 Permitted Withdrawals and Transfers from the Payment Account. (01) The Indenture Trustee will, from time to time on demand of the Master Servicer or the Securities 
  

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 Administrator, make or cause to be made such withdrawals or transfers from the Payment Account as the Master Servicer has
designated for such transfer or withdrawal pursuant to this Agreement and the Servicing Agreement or as the Securities Administrator has instructed hereunder for the following purposes (limited in the case of amounts due the Master Servicer to those
not withdrawn from the Master Servicer Collection Account as certified by the Securities Administrator in accordance with the terms of this Agreement but not in any order of priority): 
  
 (01) to reimburse the Master Servicer or the Servicer for any Monthly Advance of its own funds, the right of the Master
Servicer or the Servicer to reimbursement pursuant to this subclause (i) being limited to amounts received on a particular Mortgage Loan (including, for this purpose, the Repurchase Price therefor, Insurance Proceeds and Liquidation Proceeds) which
represent late payments or recoveries of the principal of or interest on such Mortgage Loan respecting which such Monthly Advance was made; 
  
 (02) to reimburse the Master Servicer or the Servicer from Insurance Proceeds or Liquidation Proceeds relating to a particular Mortgage Loan for amounts
expended by the Master Servicer or such Servicer in good faith in connection with the restoration of the related Mortgaged Property which was damaged by an Uninsured Cause or in connection with the liquidation of such Mortgage Loan; 
  
 (03) to reimburse the Master Servicer or the Servicer from Insurance Proceeds
relating to a particular Mortgage Loan for insured expenses incurred with respect to such Mortgage Loan and to reimburse the Master Servicer or the Servicer from Liquidation Proceeds from a particular Mortgage Loan for Liquidation Expenses incurred
with respect to such Mortgage Loan; provided that the Master Servicer shall not be entitled to reimbursement for Liquidation Expenses with respect to a Mortgage Loan to the extent that (i) any amounts with respect to such Mortgage Loan were paid as
Excess Liquidation Proceeds pursuant to clause (viii) of this Subsection 4.05 (a) to the Master Servicer; and (ii) such Liquidation Expenses were not included in the computation of such Excess Liquidation Proceeds; 
  
 (04) to reimburse the Master Servicer or the Servicer for advances of funds
(other than Monthly Advances) made with respect to the Mortgage Loans, and the right to reimbursement pursuant to this subclause being limited to amounts received on the related Mortgage Loan (including, for this purpose, the Repurchase Price
therefor, Insurance Proceeds and Liquidation Proceeds) which represent late recoveries of the payments for which such advances were made; 
  
 (05) to reimburse the Master Servicer or the Servicer for any Monthly Advance or advance, after a Realized Loss has been allocated with respect to the
related Mortgage Loan if the Monthly Advance or advance has not been reimbursed pursuant to clauses (i) and (iv); 
  
 (06) to pay the Master Servicer as set forth in Section 3.14; 
  
 (07) to reimburse the Master Servicer for expenses, costs and liabilities incurred by and reimbursable to it pursuant to Sections 3.03, 5.04(c) and (d),
to the extent that the Master Servicer has not already reimbursed itself for such amounts from the Master Servicer Collection Account; 
  

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 (08) to pay to the Master Servicer, as additional servicing compensation, any Excess Liquidation Proceeds
to the extent not retained by the Servicer; 
  
 (09) to reimburse
or pay the Servicer any such amounts as are due thereto under the Servicing Agreement and have not been retained by or paid to the Servicer, to the extent provided in the Servicing Agreement; 
  
 (10) to reimburse the Indenture Trustee, the Owner Trustee and the Securities
Administrator for expenses, costs and liabilities incurred by or reimbursable to it pursuant to this Agreement, the Indenture and the Trust Agreement, to the extent such amounts have not already been paid or reimbursed to such party from the Master
Servicer Collection Account; 
  
 (11) to remove amounts deposited
in error; and 
  
 (12) to clear and terminate the Payment Account
pursuant to Section 7.10. 
  
 (02) The Master Servicer shall keep
and maintain separate accounting, on a Mortgage Loan by Mortgage Loan basis, for the purpose of accounting for any reimbursement from the Payment Account pursuant to subclauses (i) through (iv) or with respect to any such amounts which would have
been covered by such subclauses had the amounts not been retained by the Master Servicer without being deposited in the Payment Account under Section 4.02(b). 
  

(03) On each Payment Date, pursuant to Section 3.05 of the Indenture, the Indenture Trustee shall distribute the Available Funds to the extent on
deposit in the Payment Account to the Holders of the Notes, in accordance with payment instructions provided to it by the Securities Administrator no later than two Business Days prior to such Payment Date, and determined by the Securities
Administrator in accordance with Section 3.03 of the Indenture. 
  

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 ARTICLE V 
 The Master Servicer 
  
 Section
V.01 Liabilities of the Master Servicer. The Master Servicer shall be liable in accordance herewith only to the extent of the obligations specifically imposed upon and undertaken by it herein. 
  
 Section V.02 Merger or Consolidation of the Master Servicer.

  
 (01) The Master Servicer will keep in full force and effect
its existence, rights and franchises as a corporation under the laws of the state of its incorporation, and will obtain and preserve its qualification to do business as a foreign corporation in each jurisdiction in which such qualification is or
shall be necessary to protect the validity and enforceability of this Agreement, the Notes or any of the Mortgage Loans and to perform its duties under this Agreement. 
  
 (02) Any Person into which the Master Servicer may be merged or consolidated, or any corporation resulting from any merger
or consolidation to which the Master Servicer shall be a party, or any Person succeeding to the business of the Master Servicer, shall be the successor of the Master Servicer hereunder, without the execution or filing of any paper or further act on
the part of any of the parties hereto, anything herein to the contrary notwithstanding. 
  
 Section V.03 Indemnification of the Indenture Trustee, Owner Trustee, the Master Servicer and the Securities Administrator. The Master Servicer agrees to indemnify the Indenture Trustee, Owner Trustee and
Securities Administrator (each an “Indemnified Person”) for, and to hold them harmless against, any loss, liability or expense (including reasonable legal fees and disbursements of counsel) incurred on their part that may be sustained in
connection with, arising out of, or relating to, any claim or legal action (including any pending or threatened claim or legal action) relating to this Agreement, the Indenture, the Servicing Agreement, the Assignment Agreement or the Notes or the
powers of attorney delivered by the Indenture Trustee hereunder (i) related to the Master Servicer’s failure to perform its duties in compliance with this Agreement (except as any such loss, liability or expense shall be otherwise reimbursable
pursuant to this Agreement) or (ii) incurred by reason of the Master Servicer’s willful misfeasance, bad faith or gross negligence in the performance of duties hereunder or by reason of reckless disregard of obligations and duties hereunder,
provided, in each case, that with respect to any such claim or legal action (or pending or threatened claim or legal action), the Indemnified Person shall have given the Master Servicer and the Depositor written notice thereof promptly after such
Indemnified Person shall have with respect to such claim or legal action knowledge thereof. The Master Servicer’s failure to receive any such notice shall not affect an Indemnified Persons’ right to indemnification hereunder, except to the
extent the Master Servicer is materially prejudiced by such failure to give notice. This indemnity shall survive the resignation or removal of the Indenture Trustee, Owner Trustee, Master Servicer and the Securities Administrator and the termination
of this Agreement. The Seller agrees to indemnify the Owner Trustee for any loss, liability or expense for which the Depositor is required to indemnify the Owner Trustee pursuant to Section 7.02 of the Trust Agreement, other than (x) any loss
liability or expense required to be covered by the Master Servicer pursuant to this Section 5.03 (y) and any loss, liability or expense already paid by the Depositor in accordance with Section 7.02 of the Trust Agreement. 
  

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 Section V.04 Limitations on Liability of the Master Servicer and Others. Subject to the obligation
of the Master Servicer to indemnify the Indemnified Persons pursuant to Section 5.03: 
  
 (01) Neither the Master Servicer nor any of the directors, officers, employees or agents of the Master Servicer shall be under any liability to the Indemnified Persons, the Depositor, the Trust Estate or the
Noteholders for taking any action or for refraining from taking any action in good faith pursuant to this Agreement, or for errors in judgment; provided, however, that this provision shall not protect the Master Servicer or any such Person against
any breach of warranties or representations made herein or any liability which would otherwise be imposed by reason of such Person’s willful misfeasance, bad faith or gross negligence in the performance of duties or by reason of reckless
disregard of obligations and duties hereunder. 
  
 (02) The Master
Servicer and any director, officer, employee or agent of the Master Servicer may rely in good faith on any document of any kind prima facie properly executed and submitted by any Person respecting any matters arising hereunder. 
  
 (03) The Master Servicer and any director, officer, employee or agent of the
Master Servicer shall be indemnified by the Trust Estate and held harmless thereby against any loss, liability or expense (including reasonable legal fees and disbursements of counsel) incurred on their part that may be sustained in connection with,
arising out of, or related to, any claim or legal action (including any pending or threatened claim or legal action) relating to this Agreement, the Indenture, the Notes or the Servicing Agreement (except to the extent that the Master Servicer is
indemnified by the Servicer thereunder), other than (i) any such loss, liability or expense related to the Master Servicer’s failure to perform its duties in compliance with this Agreement (except as any such loss, liability or expense shall be
otherwise reimbursable pursuant to this Agreement), or (ii) any such loss, liability or expense incurred by reason of the Master Servicer’s willful misfeasance, bad faith or gross negligence in the performance of duties hereunder or by reason
of reckless disregard of obligations and duties hereunder. 
  
 (04) The Master Servicer shall not be under any obligation to appear in, prosecute or defend any legal action that is not incidental to its duties under this Agreement and that in its opinion may involve it in any expense or liability;
provided, however, the Master Servicer may in its discretion undertake any such action which it may deem necessary or desirable with respect to this Agreement or the Indenture and the rights and duties of the parties hereto and the interests of the
Noteholders hereunder and thereunder. In such event, the legal expenses and costs of such action and any liability resulting therefrom shall be expenses, costs and liabilities of the Trust Estate, and the Master Servicer shall be entitled to be
reimbursed therefor out of the Master Servicer Collection Account as provided by Section 4.03. Nothing in this Subsection 5.04(d) shall affect the Master Servicer’s obligation to supervise, or to take such actions as are necessary to ensure,
the servicing and administration of the Mortgage Loans pursuant to Subsection 3.01(a). 
  
 (05) In taking or recommending any course of action pursuant to this Agreement, unless specifically required to do so pursuant to this Agreement, the Master Servicer shall not be required to investigate or make
recommendations concerning potential liabilities which the Trust Estate might incur as a result of such course of action by reason of the condition of the Mortgaged Properties but shall give written notice to the Indenture Trustee if it has notice
of such potential liabilities. 
  

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 (06) The Master Servicer shall not be liable for any acts or omissions of the Servicer, except as
otherwise expressly provided herein. 
  
 Section V.05 Master
Servicer Not to Resign. Except as provided in Section 5.07, the Master Servicer shall not resign from the obligations and duties hereby imposed on it except upon a determination that any such duties hereunder are no longer permissible under
applicable law and such impermissibility cannot be cured. Any such determination permitting the resignation of the Master Servicer shall be evidenced by an Opinion of Counsel addressed to the Indenture Trustee and the Issuer to such effect delivered
to the Indenture Trustee and the Issuer. No such resignation by the Master Servicer shall become effective until the Company or the Indenture Trustee or a successor to the Master Servicer reasonably satisfactory to the Indenture Trustee shall have
assumed the responsibilities and obligations of the Master Servicer in accordance with Section 6.02 hereof. The Indenture Trustee shall notify the Rating Agencies of the resignation of the Master Servicer. 
  
 Section V.06 Successor Master Servicer. In connection with the
appointment of any successor master servicer or the assumption of the duties of the Master Servicer, the Company or the Indenture Trustee may make such arrangements for the compensation of such successor master servicer out of payments on the
Mortgage Loans as the Company or the Indenture Trustee and such successor master servicer shall agree. If the successor master servicer does not agree that such market value is a fair price, such successor master servicer shall obtain two quotations
of market value from third parties actively engaged in the servicing of single-family mortgage loans. Notwithstanding the foregoing, the compensation payable to a successor master servicer may not exceed the compensation which the Master Servicer
would have been entitled to retain if the Master Servicer had continued to act as Master Servicer hereunder. 
  
 Section V.07 Sale and Assignment of Master Servicing. The Master Servicer may sell and assign its rights and delegate its duties and obligations in
its entirety as Master Servicer under this Agreement and the Company may terminate the Master Servicer without cause and select a new Master Servicer; provided, however, that: (i) the purchaser or transferee accepting such assignment and delegation
(a) shall be a Person which shall be qualified (or have an Affiliate that is qualified) to service mortgage loans for Fannie Mae or Freddie Mac; (b) shall have a net worth of not less than $10,000,000 (unless otherwise approved by each Rating Agency
pursuant to clause (ii) below); (c) shall be reasonably satisfactory to the Indenture Trustee (as evidenced in a writing signed by the Indenture Trustee); and (d) shall execute and deliver to the Indenture Trustee an agreement, in form and substance
reasonably satisfactory to the Issuer and the Indenture Trustee, which contains an assumption by such Person of the due and punctual performance and observance of each covenant and condition to be performed or observed by it as master servicer under
this Agreement; (ii) each Rating Agency shall be given prior written notice of the identity of the proposed successor to the Master Servicer and each Rating Agency’s rating of the Notes in effect immediately prior to such assignment, sale and
delegation will not be downgraded, qualified or withdrawn as a result of such assignment, sale and delegation, as evidenced by a letter to such effect delivered to the Master Servicer, the Issuer and the Indenture Trustee; (iii) the Master Servicer
assigning and selling the master servicing shall deliver to the Issuer and the Indenture Trustee an Officer’s Certificate and an Opinion of Counsel addressed to the Issuer and the Indenture Trustee, each stating that all conditions precedent to
such action under this Agreement have been completed and such action is permitted by 
  

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 and complies with the terms of this Agreement; and (iv) in the event the Master Servicer is terminated without cause by
the Company, the Company shall pay the terminated Master Servicer a termination fee equal to 0.25% of the aggregate Scheduled Principal Balance of the Mortgage Loans at the time the master servicing of the Mortgage Loans is transferred to the
successor Master Servicer. No such assignment or delegation shall affect any liability of the Master Servicer arising prior to the effective date thereof. 
  

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 ARTICLE VI 
 Default 
  
 Section VI.01
Master Servicer Events of Default. “Master Servicer Event of Default,” wherever used herein, means any one of the following events (whatever the reason for such Master Servicer Event of Default and whether it shall be voluntary or
involuntary or be effected by operation of law or pursuant to any judgment, decree or order of any court or any order, rule or regulation of any administrative or governmental body) and only with respect to the defaulting Master Servicer:

  
 (01) The Master Servicer fails to cause to be deposited in
the Payment Account any amount so required to be deposited pursuant to this Agreement (other than a Monthly Advance), and such failure continues unremedied for a period of three Business Days after the date upon which written notice of such failure,
requiring the same to be remedied, shall have been given to the Master Servicer; or 
  
 (02) The Master Servicer fails to observe or perform in any material respect any other material covenants and agreements set forth in this Agreement to be performed by it, which covenants and agreements materially
affect the rights of Noteholders, and such failure continues unremedied for a period of 60 days after the date on which written notice of such failure, properly requiring the same to be remedied, shall have been given to the Master Servicer by the
Indenture Trustee or to the Master Servicer and the Indenture Trustee by the Holders of Notes aggregating at least 25% of the Note Principal Balance of the Notes; or 
  
 (03) There is entered against the Master Servicer a decree or order by a court or agency or supervisory authority having
jurisdiction in the premises for the appointment of a conservator, receiver or liquidator in any insolvency, readjustment of debt, marshaling 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 is unstayed and in effect for a period of 60 consecutive days, or an involuntary case is commenced against the Master Servicer under any applicable insolvency or reorganization statute and the petition is
not dismissed within 60 days after the commencement of the case; or 
  
 (04) The Master Servicer consents to the appointment of a conservator or receiver or liquidator in any insolvency, readjustment of debt, marshaling of assets and liabilities or similar proceedings of or relating to the Master Servicer or
substantially all of its property; or the Master Servicer admits in writing its inability to pay its debts generally as they become due, files a petition to take advantage of any applicable insolvency or reorganization statute, makes an assignment
for the benefit of its creditors, or voluntarily suspends payment of its obligations; 
  
 (05) The Master Servicer assigns or delegates its duties or rights under this Agreement in contravention of the provisions permitting such assignment or delegation under Sections 5.05 or 5.07; or 
  
 (06) The Master Servicer fails to deposit, or cause to be deposited, in the
Payment Account any Monthly Advance (other than a Nonrecoverable Advance) by 5:00 p.m. New York City time on the Payment Account Deposit Date. 
  

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 In each and every such case, so long as such Master Servicer Event of Default with respect to the Master Servicer shall
not have been remedied, either the Indenture Trustee or the Holders of Notes aggregating at least 51% of the Note Principal Balance of the Notes, by notice in writing to the Master Servicer (and to the Indenture Trustee if given by such
Noteholders), with a copy to the Rating Agencies, and with the consent of the Company, may terminate all of the rights and obligations (but not the liabilities) of the Master Servicer under this Agreement and in and to the Mortgage Loans and/or the
REO Property serviced by the Master Servicer and the proceeds thereof. Upon the receipt by the Master Servicer of the written notice, all authority and power of the Master Servicer under this Agreement, whether with respect to the Notes, the
Mortgage Loans, REO Property or under any other related agreements (but only to the extent that such other agreements relate to the Mortgage Loans or related REO Property) shall, subject to Section 6.02, automatically and without further action pass
to and be vested in the Indenture Trustee pursuant to this Section 6.01; and, without limitation, the Trustee is hereby authorized and empowered to execute and deliver, on behalf of the Master Servicer as attorney-in-fact or otherwise, any and all
documents and other instruments and to do or accomplish all other acts or things necessary or appropriate to effect the purposes of such notice of termination, whether to complete the transfer and endorsement or assignment of the Mortgage Loans and
related documents, or otherwise. The Master Servicer agrees to cooperate with the Indenture Trustee in effecting the termination of the Master Servicer’s rights and obligations hereunder, including, without limitation, the transfer to the
Indenture Trustee of (i) the property and amounts which are then or should be part of the Trust Estate or which thereafter become part of the Trust Estate; and (ii) originals or copies of all documents of the Master Servicer reasonably requested by
the Indenture Trustee to enable it to assume the Master Servicer’s duties thereunder. In addition to any other amounts which are then, or, notwithstanding the termination of its activities under this Agreement, may become payable to the Master
Servicer under this Agreement, the Master Servicer shall be entitled to receive, out of any amount received on account of a Mortgage Loan or related REO Property, that portion of such payments which it would have received as reimbursement under this
Agreement if notice of termination had not been given. The termination of the rights and obligations of the Master Servicer shall not affect any obligations incurred by the Master Servicer prior to such termination. 
  
 Notwithstanding the foregoing, if an Event of Default described in clause
(vi) of this Section 6.01 shall occur of which a Responsible Officer of the Indenture Trustee has received written notice or has actual knowledge, the Indenture Trustee shall, by notice in writing to the Master Servicer, which may be delivered by
telecopy, immediately terminate all of the rights and obligations of the Master Servicer thereafter arising under this Agreement, but without prejudice to any rights it may have as a Noteholder or to reimbursement of Monthly Advances and other
advances of its own funds, and the Indenture Trustee shall thereupon become the successor Master Servicer as provided in Section 6.02 and carry out the duties of the Master Servicer, including the obligation to make any Monthly Advance the
nonpayment of which was an Event of Default described in clause (vi) of this Section 6.01. Any such action taken by the Indenture Trustee must be prior to the distribution on the relevant Payment Date. 
  
 Section VI.02 Indenture Trustee to Act; Appointment of Successor. (01)
Upon the receipt by the Master Servicer of a notice of termination pursuant to Section 6.01 or an Opinion of Counsel pursuant to Section 5.05 to the effect that the Master Servicer is legally unable to act or to delegate 
  

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 its duties to a Person which is legally able to act, the Indenture Trustee shall automatically become the successor in
all respects to the Master Servicer in its capacity under this Agreement and the transactions set forth or provided for herein and shall thereafter be subject to all the responsibilities, duties, liabilities and limitations on liabilities relating
thereto placed on the Master Servicer by the terms and provisions hereof; provided, however, that the Seller shall have the right to either (a) immediately assume the duties of the Master Servicer or (b) select a successor Master Servicer; provided
further, however, that the Indenture Trustee shall have no obligation whatsoever with respect to any liability (including advances deemed recoverable and not previously made with respect to the relevant Payment Date giving rise to the Master
Servicer Event of Default which shall be made by such successor Master Servicer ) incurred by the Master Servicer at or prior to the time of termination. As compensation therefor, but subject to Section 5.06, the Indenture Trustee shall be entitled
to compensation which the Master Servicer would have been entitled to retain if the Master Servicer had continued to act hereunder, except for those amounts due the Master Servicer as reimbursement permitted under this Agreement for advances
previously made or expenses previously incurred. Notwithstanding the above, the Indenture Trustee may, if it shall be unwilling so to act, or shall, if it is legally unable so to act, appoint or petition a court of competent jurisdiction to appoint,
any established housing and home finance institution which is a Fannie Mae- or Freddie Mac-approved servicer, and with respect to a successor to the Master Servicer only, having a net worth of not less than $10,000,000, as the successor to the
Master Servicer hereunder in the assumption of all or any part of the responsibilities, duties or liabilities of the Master Servicer hereunder; provided, that the Indenture Trustee shall obtain a letter from each Rating Agency that the ratings, if
any, on each of the Notes will not be lowered as a result of the selection of the successor to the Master Servicer. Pending appointment of a successor to the Master Servicer hereunder, the Indenture Trustee shall be the successor and act in such
capacity as hereinabove provided. In connection with such appointment and assumption, the Indenture Trustee may make such arrangements for the compensation of such successor out of payments on the Mortgage Loans as it and such successor shall agree;
provided, however, that the provisions of Section 5.06 shall apply, the compensation shall not be in excess of that which the Master Servicer would have been entitled to if the Master Servicer had continued to act hereunder, and that such successor
shall undertake and assume the obligations of the Master Servicer to pay compensation to any third Person acting as an agent or independent contractor in the performance of master servicing responsibilities hereunder. The Indenture Trustee and such
successor shall take such action, consistent with this Agreement, as shall be necessary to effectuate any such succession. 
  
 (02) If the Indenture Trustee shall succeed to any duties of the Master Servicer respecting the Mortgage Loans as provided herein, it shall do so in a
separate capacity and not in its capacity as Indenture Trustee and, accordingly, the provisions of Article VI of the Indenture shall be inapplicable to the Indenture Trustee in its duties as the successor to the Master Servicer in the servicing of
the Mortgage Loans (although such provisions shall continue to apply to the Indenture Trustee in its capacity as Indenture Trustee); the provisions of Article V, however, shall apply to it in its capacity as successor master servicer. 
  
 Section VI.03 Notification to Noteholders. Upon any termination or
appointment of a successor to the Master Servicer, the Indenture Trustee shall give prompt written notice thereof to Noteholders at their respective addresses appearing in the Note Register and to the Rating Agencies. 
  

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 Section VI.04 Waiver of Defaults. The Indenture Trustee shall transmit by mail to all Noteholders,
within 60 days after the occurrence of any Master Servicer Event of Default of which a Responsible Officer of the Indenture Trustee received written notice or has actual knowledge, unless such Master Servicer Event of Default shall have been cured,
notice of each such Master Servicer Event of Default. The Holders of Notes aggregating at least 51% of the Note Principal Balance of the Notes may, on behalf of all Noteholders, waive any default by the Master Servicer in the performance of its
obligations hereunder and the consequences thereof, except a default in the making of or the causing to be made any required distribution on the Notes, which default may only be waived by Holders of Notes aggregating 100% of the Note Principal
Balance of the Notes. Upon any such waiver of a past default, such default shall be deemed to cease to exist, and any Master Servicer Event of Default arising therefrom shall be deemed to have been timely remedied for every purpose of this
Agreement. No such waiver shall extend to any subsequent or other default or impair any right consequent thereon except to the extent expressly so waived. The Indenture Trustee shall give notice of any such waiver to the Rating Agencies. 

 

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 ARTICLE VII 
 Miscellaneous Provisions 
  
 Section VII.01 Amendment. (01) This Agreement may be amended from time to time by the Issuer, the Company, the Depositor, the Master Servicer, the Securities Administrator and the Indenture Trustee, without notice to or the consent
of any of the Noteholders, to cure any ambiguity, to correct or supplement any provisions herein or therein that may be defective or inconsistent with any other provisions herein or therein, to comply with any changes in the Code or 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 such action shall not, as evidenced by an Opinion of Counsel, addressed
to the Indenture Trustee, adversely affect in any material respect the interests of any Noteholder. 
  
 (02) This Agreement may also be amended from time to time by the Issuer, the Company, the Master Servicer, the Depositor, the Securities Administrator and
the Indenture Trustee, with the consent of the Holders of Notes aggregating at least 51% of Note Principal Balance of the Notes, 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 Noteholders; provided, however, that no such amendment shall (i) reduce in any manner the amount of, or delay the timing of, payments received on Mortgage Loans which are required to be
distributed on any Note without the consent of the Holder of such Note or (ii) reduce the aforesaid percentage of Notes the Holders of which are required to consent to any such amendment, without the consent of the Holders of all Notes then
outstanding. Notwithstanding any other provision of this Agreement, for purposes of the giving or withholding of consents pursuant to this Section 7.01(b), Notes registered in the name of or held for the benefit of the Issuer, the Depositor, the
Securities Administrator, the Master Servicer, or the Indenture Trustee or any Affiliate thereof shall be entitled to vote their Percentage Interests with respect to matters affecting such Notes. 
  
 (03) Promptly after the execution of any such amendment, the Indenture
Trustee shall furnish a copy of such amendment or written notification of the substance of such amendment to each Noteholder, with a copy to the Rating Agencies. 
  
 (04) In the case of an amendment under Subsection 7.01(b) above, it shall not be necessary for the Noteholders to approve
the particular form of such an amendment. Rather, it shall be sufficient if the Noteholders approve the substance of the amendment. The manner of obtaining such consents and of evidencing the authorization of the execution thereof by Noteholders
shall be subject to such reasonable regulations as the Indenture Trustee may prescribe. 
  
 (05) Prior to the execution of any amendment to this Agreement, the Indenture Trustee shall be entitled to receive and rely upon an Opinion of Counsel addressed to the Indenture Trustee stating that the execution of
such amendment is authorized or permitted by this Agreement. The Indenture Trustee, the Master Servicer and the Securities Administrator may, but shall not be obligated to, enter into any such amendment which affects its own respective rights,
duties or immunities under this Agreement. 
  

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 Section VII.02 Recordation of Agreement. To the extent permitted by applicable law, this Agreement
is subject to recordation in all appropriate public offices for real property records in all the counties or other comparable jurisdictions in which any or all of the Mortgaged Properties are situated, and in any other appropriate public recording
office or elsewhere. The Depositor shall effect such recordation, at the expense of the Trust Estate upon the request in writing of a Noteholder, but only if such direction is accompanied by an Opinion of Counsel (provided at the expense of the
Noteholder requesting recordation) to the effect that such recordation would materially and beneficially affect the interests of the Noteholders or is required by law. 
  
 Section VII.03 Governing Law. THIS AGREEMENT AND THE NOTES SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF NEW YORK WITHOUT REFERENCE TO ITS CONFLICT OF LAWS RULES (OTHER THAN SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW, WHICH THE PARTIES HERETO EXPRESSLY RELY UPON IN THE CHOICE OF SUCH LAW AS THE GOVERNING LAW HEREUNDER) AND THE OBLIGATIONS,
RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS. 
  
 Section VII.04 Notices. All demands and notices hereunder shall be in writing and shall be deemed given when delivered at (including delivery by facsimile) or mailed by registered mail, return receipt
requested, postage prepaid, or by recognized overnight courier, to (i) in the case of the Depositor, 383 Madison Avenue, New York, New York 10179, Attention: Vice President-Servicing, telecopier number: (212) 272-5591, or to such other address as
may hereafter be furnished to the other parties hereto in writing; (ii) in the case of the Indenture Trustee, at the Corporate Trust Office or such other address as may hereafter be furnished to the other parties hereto in writing; (iii) in the case
of the Company, 383 Madison Avenue, New York, New York 10179, Attention: Vice President-Servicing, telecopier number: (212) 272-5591, or to such other address as may hereafter be furnished to the other parties hereto in writing; (iv) in the case of
the Master Servicer or Securities Administrator, Wells Fargo Bank, National Association, P.O. Box 98, Columbia Maryland 21046 (or, in the case of overnight deliveries, 9062 Old Annapolis Road, Columbia, Maryland 21045) (Attention: Corporate Trust
Services - HomeBanc 2004-1), facsimile no.: (410) 715-2380, or such other address as may hereafter be furnished to the other parties hereto in writing; or (v) in the case of the Issuer, to HomeBanc Mortgage Trust 2004-1 c/o Wilmington Trust Company,
Rodney Square North, 1100 North Market Street, Wilmington, Delaware 19890, Attention: Corporate Trust Administration, or such other address as may hereafter be furnished to the other parties hereto in writing; (vi) in the case of the Owner Trustee,
to Wilmington Trust Company, Rodney Square North, 1100 North Market Street, Wilmington, Delaware 19890, Attention: Corporate Trust Administration, or such other address as may hereafter be furnished to the other parties hereto in writing; and (vii)
in the case of the Rating Agencies, Standard & Poor’s, a division of The McGraw-Hill Companies, Inc., 55 Water Street, New York, New York 10041 and Moody’s Investors Service, Inc., 99 Church Street, New York, New York 10007. Any notice
delivered to the Depositor, the Master Servicer, the Securities Administrator, the Indenture Trustee, the Issuer or the Owner Trustee under this Agreement shall be effective only upon receipt. Any notice required or permitted to be mailed to a
Noteholder, unless otherwise provided herein, shall be given by first-class mail, postage prepaid, at the address of such Noteholder as shown in the Note Register. Any notice so mailed within the time prescribed in this Agreement shall be
conclusively presumed to have been duly given when mailed, whether or not the Noteholder receives such notice. 
  

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 Section VII.05 Severability of Provisions. If any one or more of the covenants, agreements,
provisions or terms of this Agreement shall be for any reason whatsoever held invalid, then such covenants, agreements, provisions or terms shall be deemed severed 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 Notes or the rights of the Noteholders thereof. 
  
 Section VII.06 Successors and Assigns. The provisions of this Agreement shall be binding upon the parties hereto, the Noteholders and their
respective successors and assigns. The Indenture Trustee shall have the right to exercise all rights of the Issuer under this Agreement. 
  
 Section VII.07 Article and Section Headings. The article and section headings herein are for convenience of reference only, and shall not limit or
otherwise affect the meaning hereof. 
  
 Section VII.08
Counterparts. This Agreement may be executed in two or more counterparts each of which when so executed and delivered shall be an original but all of which together shall constitute one and the same instrument. 
  
 Section VII.09 Notice to Rating Agencies. The Indenture Trustee shall
promptly provide notice to each Rating Agency with respect to each of the following of which a Responsible Officer of the Indenture Trustee has actual knowledge: 
  
 01. Any material change or amendment to this Agreement; 
  
 02. The occurrence of any Master Servicer Event of Default
that has not been cured; 
  
 03. The resignation
or termination of the Master Servicer, the Indenture Trustee or the Securities Administrator; and 
  
 04. Any change in the location of the Master Servicer Collection Account or the Payment Account. 
  
 Section VII.10 Termination. The respective obligations and
responsibilities of the parties hereto created hereby shall terminate upon the satisfaction and discharge of the Indenture pursuant to Section 4.10 thereof and, if applicable, the optional redemption of the Notes pursuant to Section 8.07 thereof. In
the event that this Agreement is terminated by reason of the payment or liquidation of all Mortgage Loans or the disposition of all property acquired with respect to all Mortgage Loans under this Section, the Master Servicer shall deliver to the
Indenture Trustee for deposit in the Payment Account all distributable amounts remaining in the Master Servicer Collection Account. Upon the presentation and surrender of the Notes, the Indenture Trustee shall distribute to the remaining
Noteholders, pursuant to the written direction of the Securities Administrator and in accordance with their respective interests, all distributable amounts remaining in the Payment Account. Upon deposit by the Master Servicer of such distributable
amounts, and following such final Payment Date, the Indenture Trustee shall, or shall cause the Custodian to, release promptly to the Issuer or its designee 
  

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 the Mortgage Files for the remaining Mortgage Loans, and the Master Servicer Collection Account and the Payment Account
shall terminate, subject to the Indenture Trustee’s obligation to hold any amounts payable to the Noteholders in trust without interest pending final distributions pursuant to the Indenture. 
  
 Section VII.11 No Petition. Each party to this Agreement by entering
into this Agreement, hereby covenants and agrees that it will not at any time institute against the Issuer, or join in any institution against the Issuer, any bankruptcy proceedings under any United States federal or state bankruptcy or similar law
in connection with any obligations of the Issuer. This section shall survive the termination of this Agreement by one year. 
  
 Section VII.12 No Recourse. The Master Servicer acknowledges that no recourse may be had against the Issuer, except as may be expressly set forth
in this Agreement. 
  
 Section VII.13 Additional Terms
Regarding Indenture. The Indenture Trustee shall have only such duties and obligations under this Agreement as are expressly set forth herein, and no implied duties on its part shall be read into this Agreement. In entering into and acting under
this Agreement, the Indenture Trustee shall be entitled to all of the rights, immunities, indemnities and other protections set forth in Article VI of the Indenture. 
  

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 IN WITNESS WHEREOF, the Depositor, the Issuer, the Company, the Indenture Trustee, the Master Servicer
and the Securities Administrator have caused their names to be signed hereto by their respective officers thereunto duly authorized as of the day and year first above written. 
  

			
	STRUCTURED ASSET MORTGAGE
INVESTMENTS II INC., as Depositor
		
	By:	 	 /s/ Baron Silverstein

	Name:	 	Baron Silverstein
	Title:	 	Vice President
	
	HOMEBANC MORTGAGE TRUST
	2004-1, as Issuer
	
	By: WILMINGTON TRUST COMPANY, not in its individual capacity, but solely as Owner Trustee
		
	By:	 	 /s/ Heather L. Maier

	Name:	 	Heather L. Maier
	Title:	 	Financial Services Officer
	
	 U.S. BANK NATIONAL ASSOCIATION,
 as Indenture
Trustee

		
	By:	 	 /s/ Vaneta I Bernard

	Name:	 	Vaneta I. Bernard
	Title:	 	Vice President
	
	EMC MORTGAGE CORPORATION
		
	By:	 	 /s/ Dana Dillard

	Name:	 	Dana Dillard
	Title:	 	Senior Vice President

  

 -41- 

			
	WELLS FARGO BANK, NATIONAL ASSOCIATION, as Master Servicer
		
	By:	 	 /s/ Stacey Taylor

	Name:	 	Stacey Taylor
	Title:	 	Assistant Vice President
	
	WELLS FARGO BANK, NATIONAL ASSOCIATION, as Securities Administrator
		
	By:	 	 /s/ Stacey Taylor

	Name:	 	Stacey Taylor
	Title:	 	Assistant Vice President

  

 -42- 

			
	STATE OF NEW YORK	 	)
	 	 	) ss.:
	COUNTY OF NEW YORK	 	)

  
 On the 30th day of July, 2004 before me, a notary public in and for said State, personally appeared Baron Silverstein, known to me to be a
Vice President of Structured Asset Mortgage Investments II Inc., the 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. 
  
 Notary Public 
  
 [Notarial Seal] 
  

 -43- 

			
	STATE OF DELAWARE	 	)
	 	 	) ss.:
	COUNTY OF WILMINGTON	 	)

  
 On the 30th day of July, 2004 before me, a notary public in and for said State, personally appeared Heather L. Maier, known to me to be a
Financial Services Officer of Wilmington Trust Company, the entity that executed the within instrument, and also known to me to be the person who executed it on behalf of said entity, and acknowledged to me that such entity executed the within
instrument. 
  
 IN WITNESS WHEREOF, I have hereunto set my hand
and affixed my official seal the day and year in this certificate first above written. 
  
 Notary Public 
  
 [Notarial Seal] 
  

 -44- 

  

			
	STATE OF MASSACHUSETTS	 	)
	 	 	) ss.:
	COUNTY OF SUFFOLK	 	)

  
 On the 30th day of July, 2004 before me, a notary public in and for said State, personally appeared Vaneta I. Bernard, known to me to be a
Associate of U.S. Bank National Association, the entity that executed the within instrument, and also known to me to be the person who executed it on behalf of said entity, and acknowledged to me that such entity executed the within instrument.

  
 IN WITNESS WHEREOF, I have hereunto set my hand and affixed my
official seal the day and year in this certificate first above written. 
  
 Notary Public 
  
 [Notarial Seal] 
  

 -45- 

			
	STATE OF MARYLAND	 	)
	 	 	) ss.:
	COUNTY OF HOWARD	 	)

  
 On the 30th day of July, 2004 before me, a notary public in and for said State, personally appeared Stacey Taylor, known to me to be an
Assistant Vice President of Wells Fargo Bank, National Association, the entity that executed the within instrument, and also known to me to be the person who executed it on behalf of said entity, and acknowledged to me that such entity executed the
within instrument. 
  
 IN WITNESS WHEREOF, I have hereunto set my
hand and affixed my official seal the day and year in this certificate first above written. 
  
 Notary Public 
  
 [Notarial Seal] 
  

 -46- 

			
	STATE OF MARYLAND	 	)
	 	 	) ss.:
	COUNTY OF HOWARD	 	)

  
 On the 30th day of July, 2004 before me, a notary public in and for said State, personally appeared Stacey Taylor, known to me to be an
Assistant Vice President of Wells Fargo Bank, National Association, the entity that executed the within instrument, and also known to me to be the person who executed it on behalf of said entity, and acknowledged to me that such entity executed the
within instrument. 
  
 IN WITNESS WHEREOF, I have hereunto set my
hand and affixed my official seal the day and year in this certificate first above written. 
  
 Notary Public 
  
 [Notarial Seal] 
  

 -47- 

			
	STATE OF TEXAS	 	)
	 	 	) ss.:
	COUNTY OF DALLAS	 	)

  
 On the 30th day of July, 2004 before me, a notary public in and for said State, personally appeared Dana Dillard, known to me to be an
Senior Vice President of EMC Mortgage Corporation, the 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. 
  
 Notary Public 
  
 [Notarial Seal] 
  

 -48- 

 EXHIBIT A 
  
 MORTGAGE LOAN SCHEDULE 
  
 [Provided Upon Request] 
  

 A-1 

 EXHIBIT B 
  
 REQUEST FOR RELEASE OF DOCUMENTS 
  

	To:	U.S. Bank National Association (the “Indenture Trustee”) 

 One Federal Street, 3rd Floor 
 Boston, Massachusetts 02110 
  
 JPMorgan Chase Bank (the “Custodian”) 
 1111 Fannin Street, 12th Floor 
 Houston, Texas 77002 
  

	RE:	Sale and Servicing Agreement, dated as of July 30, 2004 (the “Sale and Servicing Agreement”), among HomeBanc Mortgage Loan Trust 2004-1 as Issuer, Structured Asset
Mortgage Investments II Inc., as Depositor, U.S. Bank National Association, as Indenture Trustee, Wells Fargo Bank, National Associations, as Securities Administrator and Master Servicer and EMC Mortgage Corporation, as Seller.

  
 In connection with the administration of the
Mortgage Loans held by the Custodian for the benefit of the Indenture Trustee pursuant to the above-captioned Sale and Servicing Agreement, we request the release, and hereby acknowledge receipt, of the Mortgage File for the Mortgage Loan described
below, for the reason indicated. 
  
 Mortgage Loan Number: 
  
 Mortgagor Name, Address & Zip Code: 
  
 Reason for Requesting Documents (check one): 
  

	 	1.	Mortgage Paid in Full and proceeds have been deposited into the Master Servicer Collection Account 

  

	 	2.	Foreclosure 

  

	 	3.	Substitution 

  

	 	4.	Other Liquidation 

  

	 	5.	Nonliquidation             Reason:
                                        
                     

  

	 	6.	California Mortgage Loan paid in full 

  

			
	By:	 	  

	 	 	(authorized signer)
	 Issuer:
  
	 	  

	Address: 	 	  

	Date: 	 	  

  
  
  
  

 B-1 

 EXHIBIT C 
  

HOMEBANC SERVICING AGREEMENT 
  
 [Provided Upon Request] 
  

 C-1 

 EXHIBIT D 
  

ASSIGNMENT AGREEMENT 
  
 [Provided Upon Request] 
  

 D-1 

 EXHIBIT E 
  
 MORTGAGE LOAN PURCHASE AGREEMENT 
  
 MORTGAGE LOAN PURCHASE AGREEMENT 
  
 between 
  
 EMC MORTGAGE CORPORATION 
  
 as Mortgage Loan Seller 
  
 and

  
 STRUCTURED ASSET MORTGAGE INVESTMENTS II INC. 
  
 as Purchaser 
  
 Dated as of 
  
 July 30, 2004 
  

 E-1 

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page

			
	 Section 1.
	  	Definitions	  	E-4
	 Section 2.
	  	Purchase and Sale of the Mortgage Loans and Related Rights	  	E-6
	 Section 3.
	  	Mortgage Loan Schedules	  	E-6
	 Section 4.
	  	Mortgage Loan Transfer	  	E-7
	 Section 5.
	  	Examination of Mortgage Files	  	E-8
	 Section 6.
	  	Recordation of Assignments of Mortgage	  	E-10
	 Section 7.
	  	Representations and Warranties of Mortgage Loan Seller Concerning the Mortgage Loans	  	E-12
	 Section 8.
	  	Representations and Warranties Concerning the Mortgage Loan Seller	  	E-16
	 Section 9.
	  	Representations and Warranties Concerning the Purchaser	  	E-17
	 Section 10.
	  	Conditions to Closing	  	E-18
	 Section 11.
	  	Fees and Expenses	  	E-20
	 Section 12.
	  	Accountants’ Letters	  	E-21
	 Section 13.
	  	Indemnification	  	E-21
	 Section 14.
	  	Notices	  	E-23
	 Section 15.
	  	Transfer of Mortgage Loans	  	E-23
	 Section 16.
	  	Termination	  	E-24
	 Section 17.
	  	Representations, Warranties and Agreements to Survive Delivery	  	E-24
	 Section 18.
	  	Severability	  	E-24
	 Section 19.
	  	Counterparts	  	E-24
	 Section 20.
	  	Amendment	  	E-24
	 Section 21.
	  	GOVERNING LAW	  	E-24
	 Section 22.
	  	Further Assurances	  	E-25
	 Section 23.
	  	Successors and Assigns	  	E-25
	 Section 24.
	  	The Mortgage Loan Seller	  	E-25
	 Section 25.
	  	Entire Agreement	  	E-25
	 Section 26.
	  	No Partnership	  	E-25
	
	EXHIBITS AND SCHEDULE TO
	MORTGAGE LOAN PURCHASE AGREEMENT
			
	 Exhibit 1
	  	Contents of Mortgage File	  	 
	 Exhibit 2
	  	Mortgage Loan Schedule Information	  	 
	 Exhibit 3
	  	Mortgage Loan Seller’s Information	  	 
	 Exhibit 4
	  	Purchaser’s Information	  	 
	 Exhibit 5
	  	Schedule of Lost Notes	  	 
	 Exhibit 6
	  	Standard & Poor’s Levels Glossary, Version 5.6 Revised, Appendix E	  	 
	 Schedule A
	  	Required Ratings for Each Class of Notes	  	 
	 Schedule B
	  	Mortgage Loan Schedule	  	 

  

 E-2 

 MORTGAGE LOAN PURCHASE AGREEMENT 
  
 MORTGAGE LOAN PURCHASE AGREEMENT, dated as of July 30, 2004, as amended and supplemented by any and all amendments hereto
(collectively, the “Agreement”), by and between EMC MORTGAGE CORPORATION, a Delaware corporation (the “Mortgage Loan Seller”) and STRUCTURED ASSET MORTGAGE INVESTMENTS II INC., a Delaware corporation (the “Purchaser”).

  
 Upon the terms and subject to the conditions of this
Agreement, the Mortgage Loan Seller agrees to sell, and the Purchaser agrees to purchase, certain conventional, first lien mortgage loans secured primarily by one- to four-family residential properties and individual condominium units (collectively,
the “Mortgage Loans”) as described herein. The Purchaser has established HomeBanc Mortgage Trust 2004-1, a Delaware statutory trust (the “Issuer”) pursuant to a Trust Agreement, dated as of July 15, 2004, as amended and restated
on July 30, 2004, among the Purchaser, the Issuer and U.S. Bank National Association, as certificate registrar and certificate paying agent. The Purchaser intends to sell the Mortgage Loans to the Issuer pursuant to a Sale and Servicing Agreement,
dated as of July 30, 2004 among the Purchaser, the Issuer, the Mortgage Loan Seller, U.S. Bank National Association, as indenture trustee (the “Indenture Trustee”) and Wells Fargo Bank, National Association, as securities administrator (in
such capacity the “Securities Administrator”) and as master servicer (in such capacity the “Master Servicer”). The Issuer, pursuant to an Indenture, dated as of July 30, 2004 (the “Indenture”) among the Issuer, the
Indenture Trustee and the Securities Administrator, intends to pledge the Mortgage Loans to the Indenture Trustee and, issue and transfer to the Purchaser the HomeBanc Mortgage Trust 2004-1, Mortgage-Backed Notes, Series 2004-1 and the Certificates
issued pursuant to the Trust Agreement (the “Certificates”). The Certificates will be transferred by the Purchaser to the Mortgage Loan Seller as partial consideration for the sale of the Mortgage Loans. The Master Servicer will master
service the Mortgage Loans on behalf of the Issuer, pursuant to the Sale and Servicing Agreement. Primary servicing of the Mortgage Loans will be provided by HomeBanc Corp. (the “Servicer”) pursuant to a Purchase, Warranties and Servicing
Agreement, dated as of July 1, 2004 (the “HomeBanc Servicing Agreement”) between the Mortgage Loan Seller, the Servicer and HMB Acceptance Corp., which (other than with respect to certain rights of the Mortgage Loan Seller against the
Servicer) will be assigned to the Issuer on the Closing Date. 
  
 The Purchaser has filed with the Securities and Exchange Commission (the “Commission”) a registration statement on Form S-3 (Number 333-115122) relating to its Mortgage-Backed Notes and the offering of certain series thereof
(including certain classes of the Notes) from time to time in accordance with Rule 415 under the Securities Act of 1933, as amended, and the rules and regulations of the Commission promulgated thereunder (the “Securities Act”). Such
registration statement, when it became effective under the Securities Act, and the prospectus relating to the public offering of certain classes of the Notes by the Purchaser (the “Public Offering”), as each may be amended or supplemented
from time to time pursuant to the Securities Act or otherwise, are referred to herein as the “Registration Statement” and the “Prospectus,” respectively. The “Prospectus Supplement” shall mean that supplement, dated
July 29, 2004 to the Prospectus, dated May 14, 2004, relating to certain classes of the Notes. With respect to the Public Offering of certain classes of the Notes, the Purchaser, Bear, Stearns & Co. Inc. (“Bear Stearns”) and J.P.
Morgan Securities Inc. (“J.P. Morgan”; together with Bear Stearns, the “Underwriters”) have entered into a terms agreement dated as of July 29, 2004 to an underwriting agreement dated December 30, 2003, between the Purchaser and
Bear Stearns (collectively, the “Underwriting Agreement”). 
  

 E-3 

 Now, therefore, in consideration of the premises and the mutual agreements set forth herein, the parties
hereto agree as follows: 
  
 Section 1. Definitions.
Certain terms are defined herein. Capitalized terms used herein but not defined herein shall have the meanings specified in Appendix A to the Indenture. The following other terms are defined as follows: 
  
 Acquisition Price: Cash in an amount equal to
$    *         (plus $    *         in accrued interest). 
  
 Bear Stearns: Bear, Stearns & Co. Inc. 
  
 Closing Date: July 30, 2004. 
  
 Custodian: JPMorgan Chase Bank. 
  
 Cut-off Date: July 1, 2004. 
  
 Cut-off Date Balance: $992,673,226.36 
  
 Deleted Mortgage Loan: A Mortgage Loan replaced or to be replaced by a
Substitute Mortgage Loan. 
  
 Due Date: With respect to
each Mortgage Loan, the date in each month on which its scheduled payment is due if such due date is the first day of a month and otherwise is deemed to be the first day of the following month or such other date specified in the HomeBanc Servicing
Agreement. 
  
 Fannie Mae: The Federal National Mortgage
Association, or any successor thereto. 
  
 FHLMC: The
Federal Home Loan Mortgage Corporation, or any successor thereto. 
  
 J.P. Morgan: J.P. Morgan Securities Inc. 
  
 Master Servicer: Wells Fargo Bank, National Association. 
  
 MERS: Mortgage Electronic Registration Systems, Inc., a corporation organized and existing under the laws of the State of Delaware, or any successor thereto. 
  

	*	Please contact Bear, Stearns & Co. Inc. 

  

 E-4 

 MERS® System: The system of recording transfers of Mortgages electronically maintained by MERS. 
  
 Moody’s: Moody’s Investors Service, Inc., or its successors
in interest. 
  
 Mortgage: The mortgage or deed of trust
creating a first lien on an interest in real property securing a Mortgage Note. 
  
 Mortgage File: The items referred to in Exhibit 1 pertaining to a particular Mortgage Loan and any additional documents required to be added to such documents pursuant to this Agreement. 
  
 Mortgage Interest Rate: The annual rate of interest borne by a
Mortgage Note as stated therein. 
  
 Mortgagor: The
obligor(s) on a Mortgage Note. 
  
 Net Rate: For each
Mortgage Loan, the Mortgage Interest Rate for such Mortgage Loan less the sum of (x) the Servicing Fee Rate and (y) the Special Servicing Fee Rate, if any, in each case expressed as a per annum rate. 
  
 Opinion of Counsel: A written opinion of counsel, who may be counsel
for the Mortgage Loan Seller or the Purchaser, reasonably acceptable to the Indenture Trustee. 
  
 Person: Any legal person, including any individual, corporation, partnership, joint venture, association, joint stock company, trust, unincorporated organization or government or any agency or political
subdivision thereof. 
  
 Purchase Price: With respect to
any Mortgage Loan (or any property acquired with respect thereto) required to be repurchased by the Mortgage Loan Seller pursuant to this Agreement, an amount equal to the sum of (i)(a) 100% of the Outstanding Principal Balance of such Mortgage Loan
as of the date of repurchase (or if the related Mortgaged Property was acquired with respect thereto, 100% of the Outstanding Principal Balance at the date of the acquisition), plus (b) accrued but unpaid interest on the Outstanding Principal
Balance at the related Mortgage Interest Rate, through and including the last day of the month of repurchase, plus (c) any unreimbursed Monthly Advances and servicing advances payable to the Servicer with respect to such Mortgage Loan and (ii) any
costs and damages (if any) incurred by the Trust in connection with any violation of such Mortgage Loan of any predatory lending laws. 
  
 Rating Agencies: Standard & Poor’s and Moody’s, each a “Rating Agency.” 
  
 Securities Act: The Securities Act of 1933, as amended. 
  
 Security Instrument: A written instrument creating a valid first lien
on a Mortgaged Property securing a Mortgage Note, which may be any applicable form of mortgage, deed of trust, deed to secure debt or security deed, including any riders or addenda thereto. 
  

 E-5 

 Standard & Poor’s: Standard & Poor’s, a division of The McGraw-Hill Companies,
Inc. or its successors in interest. 
  
 Substitute Mortgage
Loan: A mortgage loan substituted for a Deleted Mortgage Loan, which is tendered to the Indenture Trustee or the Custodian on its behalf pursuant to this Agreement and Section 2.04 of the Sale and Servicing Agreement, (i) which has an
Outstanding Principal Balance not greater nor materially less than the Mortgage Loan for which it is to be substituted; (ii) which has a Mortgage Interest Rate and Net Rate not less than, and not materially greater than, such Mortgage Loan; (iii)
which has a maturity date not materially earlier or later than such Mortgage Loan and not later than the latest maturity date of any Mortgage Loan; (iv) which is of the same property type and occupancy type as such Mortgage Loan; (v) which has a
Loan-to-Value Ratio not greater than the Loan-to-Value Ratio of such Mortgage Loan; (vi) which is current in payment of principal and interest as of the date of substitution; (vii) as to which the payment terms do not vary in any material respect
from the payment terms of the Mortgage Loan for which it is to be substituted and (viii) which has a Gross Margin, Periodic Rate Cap and Maximum Lifetime Mortgage Rate no less than those of such Mortgage Loan, has the same Index and interval between
Interest Adjustment Dates as such Mortgage Loan, and a Minimum Lifetime Mortgage Rate no lower than that of such Mortgage Loan. Upon such substitution, such mortgage loan shall be a “Mortgage Loan” hereunder. 
  
 Value: The value of the Mortgaged Property at the time of origination
of the related Mortgage Loan, such value being the lesser of (i) the value of such property set forth in an appraisal accepted by the applicable originator of the Mortgage Loan or (ii) the sales price of such property at the time of origination.

  
 Section 2. Purchase and Sale of the Mortgage Loans and
Related Rights. (a) Upon satisfaction of the conditions set forth in Section 10 hereof, the Mortgage Loan Seller agrees to sell, and the Purchaser agrees to purchase Mortgage Loans having an aggregate outstanding principal balance as of the
Cut-off Date equal to the Cut-off Date Balance. 
  
 (b) The
closing for the purchase and sale of the Mortgage Loans and the closing for the issuance of the Notes will take place on the Closing Date at the office of the Purchaser’s counsel in New York, New York or such other place as the parties shall
agree. 
  
 (c) Upon the satisfaction of the conditions set forth
in Section 10 hereof, on the Closing Date, the Purchaser shall pay to the Mortgage Loan Seller the Acquisition Price for the Mortgage Loans in immediately available funds by wire transfer to such account or accounts as shall be designated by the
Mortgage Loan Seller and shall deliver the Certificates to, or at the direction of, the Mortgage Loan Seller. 
  
 (d) In addition to the foregoing, on the Closing Date the Mortgage Loan Seller assigns to the Purchaser all of its right, title and interest in the
HomeBanc Servicing Agreement (other than its right to enforce the representations and warranties set forth therein). 
  
 Section 3. Mortgage Loan Schedules. The Mortgage Loan Seller agrees to provide to the Purchaser as of the date hereof a preliminary listing of the
Mortgage Loans (the “Preliminary Mortgage Loan Schedule”) setting forth the information listed on Exhibit 2 to this Agreement with respect to each of the Mortgage Loans being sold by the Mortgage Loan Seller. If there are changes

  

 E-6 

 to the Preliminary Mortgage Loan Schedule, the Mortgage Loan Seller shall provide to the Purchaser as of the Closing Date
a final schedule (the “Final Mortgage Loan Schedule”) setting forth the information listed on Exhibit 2 to this Agreement with respect to each of the Mortgage Loans being sold by the Mortgage Loan Seller to the Purchaser. The Final
Mortgage Loan Schedule shall be delivered to the Purchaser on the Closing Date, shall be attached to an amendment to this Agreement to be executed on the Closing Date by the parties hereto and shall be in form and substance mutually agreed to by the
Mortgage Loan Seller and the Purchaser (the “Amendment”). If there are no changes to the Preliminary Mortgage Loan Schedule, the Preliminary Mortgage Loan Schedule shall be the Final Mortgage Loan Schedule for all purposes hereof.

  
 Section 4. Mortgage Loan Transfer. 
  
 (a) The Purchaser will be entitled to all scheduled payments of principal and
interest on the Mortgage Loans due after the Cut-off Date (regardless of when actually collected) and all payments thereon, other than scheduled principal and interest due on or before the Cut-off Date but received after the Cut-off Date. The
Mortgage Loan Seller will be entitled to all scheduled payments of principal and interest on the Mortgage Loans due on or before the Cut-off Date (including payments collected after the Cut-off Date) and all payments thereon, other than scheduled
principal and interest due after the Cut-off Date but received on or before the Cut-off Date. Such principal amounts and any interest thereon belonging to the Mortgage Loan Seller as described above will not be included in the aggregate outstanding
principal balance of the Mortgage Loans as of the Cut-off Date as set forth on the Final Mortgage Loan Schedule. 
  
 (b) Pursuant to the Sale and Servicing Agreement, the Purchaser will sell, assign and transfer on the Closing Date all of its right, title and interest in
and to the Mortgage Loans to the Issuer and, pursuant to the Indenture, the Issuer will assign all of its right, title and interest to the Mortgage Loans to the Indenture Trustee for the benefit of the Noteholders, to secure the Notes issued
pursuant to the Indenture. In connection with such transfers and assignments of the Mortgage Loans, the Mortgage Loan Seller has delivered or will deliver or cause to be delivered to the Indenture Trustee, or the Custodian on its behalf, by the
Closing Date or such later date as is agreed to by the Purchaser and the Mortgage Loan Seller (each of the Closing Date and such later date is referred to as a “Mortgage File Delivery Date”), the items of each Mortgage File, provided,
however, that in lieu of the foregoing, the Mortgage Loan Seller may deliver the following documents, under the circumstances set forth below: (w) in lieu of the original Security Instrument (including the Mortgage), assignments to the Indenture
Trustee or intervening assignments thereof which have been delivered, are being delivered or will, upon receipt of recording information relating to such documents required to be included thereon, be delivered to recording offices for recording and
have not been returned to the Mortgage Loan Seller in time to permit their delivery as specified above, the Mortgage Loan Seller may deliver a true copy thereof with a certification by the Mortgage Loan Seller, or its agent on its behalf,
substantially to the effect that such copy is a true and correct copy of the original; (x) in lieu of the Security Instrument, assignments to the Indenture Trustee or intervening assignments thereof, if the applicable jurisdiction retains the
originals of such documents (as evidenced by a certification from the Mortgage Loan Seller to such effect) the Mortgage Loan Seller may deliver photocopies of such documents containing an original certification by the judicial or other governmental
authority of the jurisdiction where such documents were recorded; (y) in lieu of the Mortgage Notes relating to the Mortgage Loans, each identified in the list delivered by the Purchaser to the Indenture Trustee on the Closing Date and attached
hereto as Exhibit 5, the Mortgage Loan 
  

 E-7 

 Seller may deliver lost note affidavits and indemnities of the Mortgage Loan Seller; and (z) the Mortgage Loan Seller
shall not be required to deliver intervening assignments or Mortgage Note endorsements between the related Underlying Seller and the Mortgage Loan Seller, between the Mortgage Loan Seller and the Depositor, between the Depositor and the Issuer and
between the Issuer and the Indenture Trustee; and provided further, however, that in the case of Mortgage Loans which have been prepaid in full after the Cut-off Date and prior to the Closing Date, the Mortgage Loan Seller, in lieu of delivering the
above documents, may deliver to the Indenture Trustee and the Custodian a certification by the Mortgage Loan Seller or the Master Servicer to such effect and shall deposit all amounts paid in respect of such Mortgage Loans in the Master Servicer
Collection Account on the Closing Date. The Mortgage Loan Seller shall deliver such original documents (including any original documents as to which certified copies had previously been delivered) or such certified copies to the Indenture Trustee
promptly after they are received. The Mortgage Loan Seller shall cause the Mortgage and intervening assignments, if any, and the assignment of the Security Instrument to be recorded not later than 180 days after the Closing Date, unless such
assignment is not required to be recorded under the terms set forth in Section 6(a) hereof. 
  
 (c) In connection with the assignment of any Mortgage Loan registered on the MERS® System, the Mortgage Loan Seller further agrees that it will cause, at the Mortgage Loan Seller’s own expense, within 30 days after the Closing Date, the MERS® System to indicate that such Mortgage Loans have been
assigned by the Mortgage Loan Seller to the Purchaser, by the Purchaser to the Issuer and by the Issuer to the Indenture Trustee in accordance with this Agreement for the benefit of the Noteholders by including (or deleting, in the case of Mortgage
Loans which are repurchased in accordance with this Agreement) in such computer files (a) the code in the field which identifies the specific Indenture Trustee and (b) the code in the field “Pool Field” which identifies the series of the
Notes issued in connection with such Mortgage Loans. The Mortgage Loan Seller further agrees that it will not, and will not permit any Servicer or the Master Servicer to, and the Master Servicer agrees that it will not, alter the codes referenced in
this paragraph with respect to any Mortgage Loan during the term of the Indenture unless and until such Mortgage Loan is repurchased in accordance with the terms of the Sale and Servicing Agreement. 
  
 (d) The Mortgage Loan Seller and the Purchaser acknowledge hereunder that all
of the Mortgage Loans and the related servicing will ultimately be assigned to U.S. Bank National Association, as Indenture Trustee on behalf of the Noteholders, on the date hereof. 
  
 Section 5. Examination of Mortgage Files. 
  
 (a) On or before the Mortgage File Delivery Date, the Mortgage Loan Seller will have made the Mortgage Files available to
the Purchaser or its agent for examination which may be at the offices of the Indenture Trustee or the Mortgage Loan Seller and/or the Mortgage Loan Seller’s custodian. The fact that the Purchaser or its agent has conducted or has failed to
conduct any partial or complete examination of the Mortgage Files shall not affect the Purchaser’s rights to demand cure, repurchase, substitution or other relief as provided in this Agreement. In furtherance of the foregoing, the Mortgage Loan
Seller shall make the Mortgage Files available to the Purchaser or its agent from time to time so as to permit the Purchaser to confirm the Mortgage Loan Seller’s compliance with the delivery and recordation requirements of this Agreement and
the Sale and Servicing Agreement. In addition, upon request of the Purchaser, the Mortgage Loan Seller agrees to provide to the Purchaser, the Underwriters and to any investors or prospective investors in the Notes information 
  

 E-8 

 regarding the Mortgage Loans and their servicing, to make the Mortgage Files available to the Purchaser, the Underwriters
and to such investors or prospective investors (which may be at the offices of the Mortgage Loan Seller and/or the Mortgage Loan Seller’s custodian) and to make available personnel knowledgeable about the Mortgage Loans for discussions with the
Purchaser, the Underwriters and such investors or prospective investors, upon reasonable request during regular business hours, sufficient to permit the Purchaser, the Underwriters and such investors or potential investors to conduct such due
diligence as any such party reasonably believes is appropriate. 
  
 (b) Pursuant to the Custodial Agreement, on the Closing Date the Custodian, on behalf of the Indenture Trustee, for the benefit of the Noteholders, will acknowledge receipt of each Mortgage Loan, by delivery to the Mortgage Loan Seller, the
Purchaser and the Issuer of an initial certification in the form attached as Exhibit One to the Custodial Agreement. 
  
 (c) Pursuant to the Custodial Agreement, within 90 days of the Closing Date (or, with respect to any Substitute Mortgage Loan, within five Business Days
after the receipt by the Indenture Trustee or Custodian thereof), the Custodian will review items of the Mortgage Files as set forth on Exhibit 1 and will deliver to the Mortgage Loan Seller, the Purchaser and the Indenture Trustee an interim
certification substantially in the form of Exhibit Two to the Custodial Agreement. If the Indenture Trustee or Custodian, as its agent, finds any document listed on Exhibit 1 has not been executed or received, or is unrelated, determined on the
basis of the Mortgagor name, original principal balance and loan number, to the Mortgage Loans identified in the Final Mortgage Loan Schedule does not conform on its face to review criteria specified in Section 2.01 of the Sale and Servicing
Agreement (a “Material Defect”), the Indenture Trustee in accordance with the Sale and Servicing Agreement or the Custodian, as its agent, shall promptly notify the Mortgage Loan Seller of such Material Defect. The Mortgage Loan Seller
shall correct or cure any such Material Defect within 90 days from the date of notice from the Indenture Trustee or the Custodian, as its agent, of the Material Defect and if the Mortgage Loan Seller fails to correct or cure such Material Defect
within such period and such defect materially and adversely affects the interests of the Noteholders in the related Mortgage Loan, the Mortgage Loan Seller will, in accordance with the terms of the Sale and Servicing Agreement, within 90 days of the
date of notice, provide the Indenture Trustee with a Substitute Mortgage Loan or purchase the related Mortgage Loan at the applicable Purchase Price; provided, however, that if such Material Defect relates solely to the inability of the Mortgage
Loan Seller to deliver the original Security Instrument or intervening assignments thereof, or a certified copy because the originals of such documents, or a certified copy, have not been returned by the applicable jurisdiction, the Mortgage Loan
Seller shall not be required to purchase such Mortgage Loan if the Mortgage Loan Seller delivers such original documents or certified copy promptly upon receipt, but in no event later than 360 days after the Closing Date. The foregoing repurchase
obligation shall not apply in the event that the Mortgage Loan Seller cannot deliver such original or copy of any document submitted for recording to the appropriate recording office in the applicable jurisdiction because such document has not been
returned by such office; provided that the Mortgage Loan Seller shall instead deliver a recording receipt of such recording office or, if such receipt is not available, a certificate confirming that such documents have been accepted for recording,
and delivery to the Indenture Trustee or the Custodian, as its agent, shall be effected by the Mortgage Loan Seller within thirty days of its receipt of the original recorded document. 
  

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 (d) Pursuant to the Custodial Agreement, within 180 days of the Closing Date (or, with respect to any
Substitute Mortgage Loan, within five Business Days after the receipt by the Indenture Trustee or Custodian thereof) the Custodian will review items of the Mortgage Files as set forth on Exhibit 1 and will deliver to the Mortgage Loan Seller, the
Purchaser, the Issuer and the Indenture Trustee a final certification substantially in the form of Exhibit Three to the Custodial Agreement. If the Indenture Trustee or Custodian, as its agent, finds a Material Defect, the Indenture Trustee or the
Custodian, as its agent, shall promptly notify the Mortgage Loan Seller of such Material Defect. The Mortgage Loan Seller shall correct or cure any such Material Defect within 90 days from the date of notice from the Indenture Trustee or the
Custodian, as its agent, of the Material Defect and if the Mortgage Loan Seller fails to correct or cure such Material Defect within such period and such defect materially and adversely affects the interests of the Noteholders in the related
Mortgage Loan, the Mortgage Loan Seller will, in accordance with the terms of the Sale and Servicing Agreement, within 90 days of the date of notice, provide the Indenture Trustee with a Substitute Mortgage Loan or purchase the related Mortgage Loan
at the applicable Purchase Price; provided, however, that if such Material Defect relates solely to the inability of the Mortgage Loan Seller to deliver the original Security Instrument or intervening assignments thereof, or a certified copy because
the originals of such documents, or a certified copy, have not been returned by the applicable jurisdiction, the Mortgage Loan Seller shall not be required to purchase such Mortgage Loan if the Mortgage Loan Seller delivers such original documents
or certified copy promptly upon receipt, but in no event later than 360 days after the Closing Date. The foregoing repurchase obligation shall not apply in the event that the Mortgage Loan Seller cannot deliver such original or copy of any document
submitted for recording to the appropriate recording office in the applicable jurisdiction because such document has not been returned by such office; provided that the Mortgage Loan Seller shall instead deliver a recording receipt of such recording
office or, if such receipt is not available, a certificate confirming that such documents have been accepted for recording, and delivery to the Indenture Trustee or the Custodian, as its agent, shall be effected by the Mortgage Loan Seller within
thirty days of its receipt of the original recorded document. 
  
 (e) At the time of any substitution, the Mortgage Loan Seller shall deliver or cause to be delivered the Substitute Mortgage Loan, the related Mortgage File and any other documents and payments required to be delivered in connection with a
substitution pursuant to the Sale and Servicing Agreement. At the time of any purchase or substitution, the Indenture Trustee in accordance with the terms of the Sale and Servicing Agreement shall (i) assign to the Mortgage Loan Seller and cause the
Custodian to release the documents (including, but not limited to, the Mortgage, Mortgage Note and other contents of the Mortgage File) in the possession of the Custodian relating to the Deleted Mortgage Loan and (ii) execute and deliver such
instruments of transfer or assignment, in each case without recourse, as shall be necessary to vest in the Mortgage Loan Seller title to such Deleted Mortgage Loan. 
  
 Section 6. Recordation of Assignments of Mortgage. 
  
 (a) The Mortgage Loan Seller shall cause each assignment of the Security Instrument from the Mortgage Loan Seller to the
Indenture Trustee to be recorded not later than 180 days after the Closing Date, unless (a) such recordation is not required by the Rating Agencies or an Opinion of Counsel has been provided to the Indenture Trustee (with a copy to the Custodian)
which states that the recordation of such assignments is not necessary to protect the interests of the Noteholders in the related Mortgage Loans or (b) MERS is identified on the Mortgage or a properly recorded assignment of the Mortgage, as the
Mortgagee of record solely as nominee for the Mortgage Loan Seller and its successors and assigns; provided, however, notwithstanding the foregoing, each 
  

 E-10 

 assignment shall be submitted for recording by the Mortgage Loan Seller in the manner described above, at no expense to
the Issuer or the Indenture Trustee, upon the earliest to occur of (i) reasonable direction by the Holders of Notes aggregating at least 25% of the Note Principal Balance of the Notes, (ii) the occurrence of a Master Servicer Event of Default or an
Event of Default, (iii) the occurrence of a bankruptcy, insolvency or foreclosure relating to the Mortgage Loan Seller and (iv) the occurrence of a servicing transfer as described in Section 6.02 of the Sale and Servicing Agreement. 
  
 While each such Mortgage or assignment is being recorded, if necessary, the
Mortgage Loan Seller shall leave or cause to be left with the Indenture Trustee a certified copy of such Mortgage or assignment. All customary recording fees and reasonable expenses relating to the recordation of the assignments of mortgage to the
Indenture Trustee or the Opinion of Counsel, as the case may be, shall be borne by the Mortgage Loan Seller. 
  
 (b) It is the express intent of the parties hereto that the conveyance of the Mortgage Loans by the Mortgage Loan Seller to the Purchaser, as contemplated
by this Agreement be, and be treated as, a sale. It is, further, not the intention of the parties that such conveyance be deemed a pledge of the Mortgage Loans by the Mortgage Loan Seller to the Purchaser to secure a debt or other obligation of the
Mortgage Loan Seller. However, in the event that, notwithstanding the intent of the parties, the Mortgage Loans are held by a court to continue to be property of the Mortgage Loan Seller, then (a) this Agreement shall also be deemed to be a security
agreement within the meaning of Articles 8 and 9 of the applicable Uniform Commercial Code; (b) the transfer of the Mortgage Loans provided for herein shall be deemed to be a grant by the Mortgage Loan Seller to the Purchaser of a security interest
in all of the Mortgage Loan Seller’s right, title and interest in and to the Mortgage Loans and all amounts payable to the holders of the Mortgage Loans in accordance with the terms thereof and all proceeds of the conversion, voluntary or
involuntary, of the foregoing into cash, instruments, securities or other property, to the extent the Purchaser would otherwise be entitled to own such Mortgage Loans and proceeds pursuant to Section 4 hereof, including all amounts, other than
investment earnings, from time to time held or invested in any accounts created pursuant to the Indenture or the Sale and Servicing Agreement, whether in the form of cash, instruments, securities or other property; (c) the possession by the
Purchaser, the Issuer or the Indenture Trustee of Mortgage Notes and such other items of property as constitute instruments, money, negotiable documents or chattel paper shall be deemed to be “possession by the secured party” for purposes
of perfecting the security interest pursuant to Section 9-313 (or comparable provision) of the applicable Uniform Commercial Code; and (d) notifications to persons holding such property, and acknowledgments, receipts or confirmations from persons
holding such property, shall be deemed notifications to, or acknowledgments, receipts or confirmations from, financial intermediaries, bailees or agents (as applicable) of the Purchaser for the purpose of perfecting such security interest under
applicable law. Any assignment of the interest of the Purchaser pursuant to any provision hereof or pursuant to the Sale and Servicing Agreement and any subsequent assignment pursuant to the Indenture shall also be deemed to be an assignment of any
security interest created hereby. The Mortgage Loan Seller and the Purchaser shall, to the extent consistent with this Agreement, take such actions as may be reasonably necessary to ensure that, if this Agreement were deemed to create a security
interest in the Mortgage Loans, such security interest would be deemed to be a perfected security interest of first priority under applicable law and will be maintained as such throughout the term of the Indenture. 
  

 E-11 

 Section 7. Representations and Warranties of Mortgage Loan Seller Concerning the Mortgage Loans.
The Mortgage Loan Seller hereby represents and warrants to the Purchaser as of the Closing Date or such other date as may be specified below with respect to each Mortgage Loan being sold by it: 
  
 (i) the information set forth in the Mortgage Loan Schedule
hereto is true and correct in all material respects and the information provided to the Rating Agencies, including the Mortgage Loan level detail, is true and correct according to the Rating Agencies’ requirements; 
  
 (ii) immediately prior to the transfer to the Purchaser, the
Mortgage Loan Seller was the sole owner of beneficial title and holder of each Mortgage and Mortgage Note relating to the Mortgage Loans and is conveying the same free and clear of any and all liens, claims, encumbrances, participation interests,
equities, pledges, charges or security interests of any nature and the Mortgage Loan Seller has full right and authority to sell or assign the same pursuant to this Agreement; 
  
 (iii) Each Mortgage Loan at the time it was made complied in all material respects with all applicable laws
and regulations, including, without limitation, usury, equal credit opportunity, disclosure and recording laws and all predatory lending laws; and each Mortgage Loan has been serviced in all material respects in accordance with all applicable laws
and regulations, including, without limitation, usury, equal credit opportunity, disclosure and recording laws and all predatory lending laws and the terms of the related Mortgage Note, the Mortgage and other loan documents; 
  
 (iv) there is no monetary default existing under any
Mortgage or the related Mortgage Note and there is no material event which, with the passage of time or with notice and the expiration of any grace or cure period, would constitute a default, breach or event of acceleration; and neither the Mortgage
Loan Seller, any of its affiliates nor any servicer of any related Mortgage Loan has taken any action to waive any default, breach or event of acceleration; no foreclosure action is threatened or has been commenced with respect to the Mortgage Loan;

  
 (v) the terms of the Mortgage Note and the
Mortgage have not been impaired, waived, altered or modified in any respect, except by written instruments, (i) if required by law in the jurisdiction where the Mortgaged Property is located, or (ii) to protect the interests of the Indenture Trustee
on behalf of the Noteholders; 
  
 (vi) no
selection procedure reasonably believed by the Mortgage Loan Seller to be adverse to the interests of the Noteholders was utilized in selecting the Mortgage Loans; 
  
 (vii) each Mortgage is a valid and enforceable first lien on the property securing the related Mortgage Note
and each Mortgaged Property is owned by the Mortgagor in fee simple (except with respect to common areas in the case of condominiums, PUDs and de minimis PUDs) or by leasehold for a term longer than the term of the related Mortgage, subject only to
(i) the lien of current real property taxes and assessments, (ii) covenants, conditions and restrictions, rights of way, easements and other matters of public record as of 
  

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 the date of recording of such Mortgage, such exceptions being acceptable to mortgage lending institutions
generally or specifically reflected in the appraisal obtained in connection with the origination of the related Mortgage Loan or referred to in the lender’s title insurance policy delivered to the originator of the related Mortgage Loan and
(iii) other matters to which like properties are commonly subject which do not materially interfere with the benefits of the security intended to be provided by such Mortgage; 
  
 (viii) there is no mechanics’ lien or claim for work, labor or material affecting the premises subject
to any Mortgage which is or may be a lien prior to, or equal with, the lien of such Mortgage except those which are insured against by the title insurance policy referred to in (xiii) below; 
  
 (ix) as of the Closing Date, to the best of the Mortgage
Loan Seller’s knowledge, there was no delinquent tax or assessment lien against the property subject to any Mortgage, except where such lien was being contested in good faith and a stay had been granted against levying on the property;

  
 (x) there is no valid offset, defense or
counterclaim to any Mortgage Note or Mortgage, including the obligation of the Mortgagor to pay the unpaid principal and interest on such Mortgage Note; 
  
 (xi) to the best of the Mortgage Loan Seller’s knowledge, except to the extent insurance is in place which will cover such damage,
the physical property subject to any Mortgage is free of material damage and is in good repair and there is no proceeding pending or threatened for the total or partial condemnation of any Mortgaged Property; 
  
 (xii) to the best of the Mortgage Loan Seller’s
knowledge, the Mortgaged Property and all improvements thereon comply with all requirements of any applicable zoning and subdivision laws and ordinances; 
  
 (xiii) a lender’s title insurance policy (on an ALTA or CLTA form) or binder, or other assurance of title customary in the relevant
jurisdiction therefor in a form acceptable to Fannie Mae or Freddie Mac, was issued on the date that each Mortgage Loan was created by a title insurance company which, to the best of the Mortgage Loan Seller’s knowledge, was qualified to do
business in the jurisdiction where the related Mortgaged Property is located, insuring the Mortgage Loan Seller and its successors and assigns that the Mortgage is a first priority lien on the related Mortgaged Property in the original principal
amount of the Mortgage Loan. The Mortgage Loan Seller is the sole insured under such lender’s title insurance policy, and such policy, binder or assurance is valid and remains in full force and effect, and each such policy, binder or assurance
shall contain all applicable endorsements including a negative amortization endorsement, if applicable; 
  
 (xiv) at the time of origination, each Mortgaged Property was the subject of an appraisal which conformed to the underwriting requirements
of the originator of the Mortgage Loan and, the appraisal is in a form acceptable to Fannie Mae or FHLMC; 
  

 E-13 

 (xv) as of the Closing Date, the improvements on each Mortgaged Property securing a
Mortgage Loan is insured (by an insurer which is acceptable to the Mortgage Loan Seller) against loss by fire and such hazards as are covered under a standard extended coverage endorsement in the locale in which the Mortgaged Property is located, in
an amount which is not less than the lesser of the maximum insurable value of the improvements securing such Mortgage Loan or the outstanding principal balance of the Mortgage Loan, but in no event in an amount less than an amount that is required
to prevent the Mortgagor from being deemed to be a co insurer thereunder; if the improvement on the Mortgaged Property is a condominium unit, it is included under the coverage afforded by a blanket policy for the condominium project; if upon
origination of the related Mortgage Loan, the improvements on the Mortgaged Property were in an area identified as a federally designated flood area, a flood insurance policy is in effect in an amount representing coverage not less than the least of
(i) the outstanding principal balance of the Mortgage Loan, (ii) the restorable cost of improvements located on such Mortgaged Property or (iii) the maximum coverage available under federal law; and each Mortgage obligates the Mortgagor thereunder
to maintain the insurance referred to above at the Mortgagor’s cost and expense; 
  
 (xvi) none of the Mortgage Loans are secured by an interest in a leasehold estate; 
  
 (xvii) each Mortgage Loan was originated or funded by (a) a
savings and loan association, savings bank, commercial bank, credit union, insurance company or similar institution which is supervised and examined by a federal or state authority (or originated by (i) a subsidiary of any of the foregoing
institutions which subsidiary is actually supervised and examined by applicable regulatory authorities or (ii) a mortgage loan correspondent of any of the foregoing and that was originated pursuant to the criteria established by any of the
foregoing) or (b) a mortgagee approved by the Secretary of Housing and Urban Development pursuant to sections 203 and 211 of the National Housing Act, as amended; 
  
 (xviii) none of the Mortgage Loans are (a) loans subject to 12 CFR Part 226.31, 12 CFR Part 226.32 or 12 CFR
Part 226.34 of Regulation Z, the regulation implementing TILA, which implements the Home Ownership and Equity Protection Act of 1994, as amended or (b) classified and/or defined as a “high cost home loan” under any federal, state or local
law, including, but not limited to, the States of Georgia or North Carolina; 
  
 (xix) the information set forth in Schedule A of the Prospectus Supplement with respect to the Mortgage Loans is true and correct in all material respects; 
  
 (xx) no Mortgage Loan is a High Cost Loan or Covered Loan,
as applicable (as such terms are defined in Standard & Poor’s LEVELS® Glossary, Version 5.6 Revised, Appendix E, attached hereto as Exhibit 6) and no Mortgage Loan originated on or after October 1, 2002 through March 6, 2003 is governed by the “Georgia Fair Lending Act”;

  
 (xxi) each Mortgage Loan was originated in
accordance with the underwriting guidelines of the related originator; 
  
 (xxii) each original Mortgage has been recorded or is in the process of being recorded in accordance with the requirements of Section 2.01 of the Sale and Servicing Agreement in the appropriate jurisdictions wherein
such recordation is required to perfect the lien thereof for the benefit of the Trust Fund; 
  

 E-14 

 (xxiii) the related Mortgage File contains each of the documents and instruments listed
in Section 2.01 of the Sale and Servicing Agreement, subject to any exceptions, substitutions and qualifications as are set forth in such Section; 
  
 (xxiv) the Mortgage Loans are currently being serviced in accordance with accepted servicing practices; 
  
 (xxv) at the time of origination, each Mortgaged Property
was the subject of an appraisal which conformed to the underwriting requirements of the originator of the Mortgage Loan, and the appraisal is in a form which was acceptable to Fannie Mae or FHLMC at the time of origination; 
  
 (xxvi) None of the Mortgage Loans originated on or after
October 1, 2002 and before March 7, 2003 was secured by property located in the State of Georgia; 
  
 (xxvii) No proceeds from any Group I Loan were used to finance single-premium credit insurance policies; 
  
 (xxviii) The servicer for each Group I Loan has fully
furnished, and will continue to fully furnish, in accordance with the Fair Credit Reporting Act and its implementing regulations, accurate and complete information (ie. favorable and unfavorable) on its borrower credit files to Equifax, Experian,
and Trans Union Credit Information Company (three of the credit repositories), on a monthly basis; 
  
 (xxix) The conforming one- to four-family mortgage loans in Loan Group I, which may include the balance of any subordinated lien, each
have an original principal balance that does not exceed Freddie Mac’s dollar amount limits; and 
  
 (xxx) No Mortgage Loan in the is a “high cost home,” “covered” (excluding home loans defined as “covered home
loans” in the New Jersey Home Ownership Security Act of 2002 that were originated between November 26, 2003 and July 7, 2004), “high risk home” or “predatory” loan under any applicable state, federal or local law (or a
similarly classified loan using different terminology under a law imposing heightened regulatory scrutiny or additional legal liability for residential mortgage loans having high interest rates, points and/or fees).” 
  
 It is understood and agreed that the representations and warranties set forth
in this Section 7 will inure to the benefit of the Purchaser, its successors and assigns, notwithstanding any restrictive or qualified endorsement on any Mortgage Note or assignment of Mortgage or the examination of any Mortgage File. Upon any
substitution for a Mortgage Loan, the representations and warranties set forth above shall be deemed to be made by the Mortgage Loan Seller as to any Substitute Mortgage Loan as of the date of substitution. 
  

 E-15 

 Upon discovery or receipt of notice by the Mortgage Loan Seller, the Purchaser, the Issuer or the
Indenture Trustee of a breach of any representation or warranty of the Mortgage Loan Seller set forth in this Section 7 which materially and adversely affects the value of the interests of the Purchaser, the Issuer, the Noteholders or the Indenture
Trustee in any of the Mortgage Loans delivered to the Purchaser pursuant to this Agreement, the party discovering or receiving notice of such breach shall give prompt written notice to the others. It is understood and agreed that a breach of any one
of the representations contained in clauses (xviii) and (xxvi) through (xxx) above in respect of a Group I Loan will be deemed to materially adversely affect the interests of the Noteholders. In the case of any such breach of a representation or
warranty set forth in this Section 7, within 90 days from the date of discovery by the Mortgage Loan Seller, or the date the Mortgage Loan Seller is notified by the party discovering or receiving notice of such breach (whichever occurs earlier), the
Mortgage Loan Seller will (i) cure such breach in all material respects, (ii) purchase the affected Mortgage Loan at the applicable Purchase Price or (iii) substitute a qualifying Substitute Mortgage Loan in exchange for such Mortgage Loan. The
obligations of the Mortgage Loan Seller to cure, purchase or substitute a qualifying Substitute Mortgage Loan shall constitute the Purchaser’s, the Issuer’s, the Indenture Trustee’s and the Noteholder’s sole and exclusive remedy
under this Agreement or otherwise respecting a breach of representations or warranties hereunder with respect to the Mortgage Loans, except for the obligation of the Mortgage Loan Seller to indemnify the Purchaser for such breach as set forth in and
limited by Section 13 hereof. 
  
 Any cause of action against the
Mortgage Loan Seller or relating to or arising out of a breach by the Mortgage Loan Seller of any representations and warranties made in this Section 7 shall accrue as to any Mortgage Loan upon (i) discovery of such breach by the Mortgage Loan
Seller or notice thereof by the party discovering such breach and (ii) failure by the Mortgage Loan Seller to cure such breach, purchase such Mortgage Loan or substitute a qualifying Substitute Mortgage Loan pursuant to the terms hereof. 

 
 Section 8. Representations and Warranties Concerning the Mortgage Loan
Seller. As of the date hereof and as of the Closing Date, the Mortgage Loan Seller represents and warrants to the Purchaser as to itself in the capacity indicated as follows: 
  
 (a) the Mortgage Loan Seller (i) is a corporation duly organized, validly existing and in good standing under the laws of
the State of Delaware and (ii) is qualified and in good standing to do business in each jurisdiction where such qualification is necessary, except where the failure so to qualify would not reasonably be expected to have a material adverse effect on
the Mortgage Loan Seller’s business as presently conducted or on the Mortgage Loan Sellers ability to enter into this Agreement and to consummate the transactions contemplated hereby; 
  
 (b) the Mortgage Loan Seller has full power to own its property, to carry on
its business as presently conducted and to enter into and perform its obligations under this Agreement; 
  
 (c) the execution and delivery by the Mortgage Loan Seller of this Agreement have been duly authorized by all necessary action on the part of the Mortgage
Loan Seller; and neither the execution and delivery of this Agreement, nor the consummation of the transactions herein contemplated, nor compliance with the provisions hereof, will conflict with or result in a breach of, or constitute a default
under, any of the provisions of any law, governmental rule, regulation, judgment, decree or order binding on the Mortgage Loan Seller or its properties or the charter or by-laws of the Mortgage Loan Seller, except those conflicts, breaches or
defaults which would not reasonably be expected to have a material adverse effect on the Mortgage Loan Seller’s ability to enter into this Agreement and to consummate the transactions contemplated hereby; 
  

 E-16 

 (d) the execution, delivery and performance by the Mortgage Loan Seller of this Agreement and the
consummation of the transactions contemplated hereby do not require the consent or approval of, the giving of notice to, the registration with, or the taking of any other action in respect of, any state, federal or other governmental authority or
agency, except those consents, approvals, notices, registrations or other actions as have already been obtained, given or made and, in connection with the recordation of the Mortgages, powers of attorney or assignments of Mortgages not yet
completed; 
  
 (e) this Agreement has been duly executed and
delivered by the Mortgage Loan Seller and, assuming due authorization, execution and delivery by the Purchaser, constitutes a valid and binding obligation of the Mortgage Loan Seller enforceable against it in accordance with its terms (subject to
applicable bankruptcy and insolvency laws and other similar laws affecting the enforcement of the rights of creditors generally); 
  
 (f) there are no actions, suits or proceedings pending or, to the knowledge of the Mortgage Loan Seller, threatened against the Mortgage Loan Seller,
before or by any court, administrative agency, arbitrator or governmental body (i) with respect to any of the transactions contemplated by this Agreement or (ii) with respect to any other matter which in the judgment of the Mortgage Loan Seller will
be determined adversely to the Mortgage Loan Seller and will if determined adversely to the Mortgage Loan Seller materially and adversely affect the Mortgage Loan Seller’s ability to perform its obligations under this Agreement; and the
Mortgage Loan Seller is not in default with respect to any order of any court, administrative agency, arbitrator or governmental body so as to materially and adversely affect the transactions contemplated by this Agreement; and 
  
 (g) the Mortgage Loan Seller’s Information (as defined in Section 13(a)
hereof) does not include any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements made, in light of the circumstances under which they were made, not misleading. 
  
 Section 9. Representations and Warranties Concerning the Purchaser. As
of the date hereof and as of the Closing Date, the Purchaser represents and warrants to the Mortgage Loan Seller as follows: 
  
 (a) the Purchaser (i) is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware and (ii) is qualified
and in good standing as a foreign corporation to do business in each jurisdiction where such qualification is necessary, except where the failure to so qualify would not reasonably be expected to have a material adverse effect on the
Purchaser’s business as presently conducted or on the Purchaser’s ability to enter into this Agreement and to consummate the transactions contemplated hereby; 
  
 (b) the Purchaser has full corporate power to own its property, to carry on its business as presently conducted and to enter
into and perform its obligations under this Agreement; 
  
 (c) the
execution and delivery by the Purchaser of this Agreement have been duly authorized by all necessary corporate action on the part of the Purchaser; and neither the execution 
  

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 and delivery of this Agreement, nor the consummation of the transactions herein contemplated, nor compliance with the
provisions hereof, will conflict with or result in a breach of, or constitute a default under, any of the provisions of any law, governmental rule, regulation, judgment, decree or order binding on the Purchaser or its properties or the articles of
incorporation or by-laws of the Purchaser, except those conflicts, breaches or defaults which would not reasonably be expected to have a material adverse effect on the Purchaser’s ability to enter into this Agreement and to consummate the
transactions contemplated hereby; 
  
 (d) the execution, delivery
and performance by the Purchaser of this Agreement and the consummation of the transactions contemplated hereby do not require the consent or approval of, the giving of notice to, the registration with, or the taking of any other action in respect
of, any state, federal or other governmental authority or agency, except those consents, approvals, notices, registrations or other actions as have already been obtained, given or made; 
  
 (e) this Agreement has been duly executed and delivered by the Purchaser and, assuming due authorization, execution and
delivery by the Mortgage Loan Seller, constitutes a valid and binding obligation of the Purchaser enforceable against it in accordance with its terms (subject to applicable bankruptcy and insolvency laws and other similar laws affecting the
enforcement of the rights of creditors generally); 
  
 (f) there
are no actions, suits or proceedings pending or, to the knowledge of the Purchaser, threatened against the Purchaser, before or by any court, administrative agency, arbitrator or governmental body (i) with respect to any of the transactions
contemplated by this Agreement or (ii) with respect to any other matter which in the judgment of the Purchaser will be determined adversely to the Purchaser and will if determined adversely to the Purchaser materially and adversely affect the
Purchaser’s ability to perform its obligations under this Agreement; and the Purchaser is not in default with respect to any order of any court, administrative agency, arbitrator or governmental body so as to materially and adversely affect the
transactions contemplated by this Agreement; and 
  
 (g) the
Purchaser’s Information (as defined in Section 13(b) hereof) does not include any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements made, in light of the circumstances under which
they were made, not misleading. 
  
 Section 10. Conditions to
Closing. 
  
 (a) The obligations of the Purchaser under this
Agreement will be subject to the satisfaction, on or prior to the Closing Date, of the following conditions: 
  
 (1) Each of the obligations of the Mortgage Loan Seller required to be performed at or prior to the Closing Date pursuant to the terms of
this Agreement shall have been duly performed and complied with in all material respects; all of the representations and warranties of the Mortgage Loan Seller under this Agreement shall be true and correct as of the date or dates specified in all
material respects; and no event shall have occurred which, with notice or the passage of time, would constitute a default under this Agreement or the Sale and Servicing Agreement; and the Purchaser shall have received certificates to that effect
signed by authorized officers of the Mortgage Loan Seller. 
  

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 (2) The Purchaser shall have received all of the following closing documents, in such
forms as are agreed upon and reasonably acceptable to the Purchaser, duly executed by all signatories (other than the Purchaser) as required pursuant to the respective terms thereof: 
  
 (i) If required pursuant to Section 3 hereof, the Amendment dated as of the Closing Date and any documents
referred to therein; 
  
 (ii) If required
pursuant to Section 3 hereof, the Final Mortgage Loan Schedule containing the information set forth on Exhibit 2 hereto, one copy to be attached to each counterpart of the Amendment; 
  
 (iii) The Trust Agreement, in form and substance reasonably satisfactory to the Purchaser, and all documents
required thereby duly executed by all signatories; 
  
 (iv) The Sale and Servicing Agreement, in form and substance reasonably satisfactory to the Indenture Trustee, the Issuer and the Purchaser, and all documents required thereby duly executed by all signatories; 
  
 (v) The Indenture, in form and substance reasonably
satisfactory to the Indenture Trustee, the Issuer and the Purchaser, and all documents required thereby duly executed by all signatories; 
  
 (vi) A certificate of an officer of the Mortgage Loan Seller dated as of the Closing Date, in a form reasonably acceptable to the
Purchaser, and attached thereto the resolutions of the Mortgage Loan Seller authorizing the transactions contemplated by this Agreement, together with copies of the charter and by-laws of the Mortgage Loan Seller; 
  
 (vii) One or more opinions of counsel from the Mortgage Loan
Seller’s counsel otherwise in form and substance reasonably satisfactory to the Purchaser, the Issuer, the Indenture Trustee and each Rating Agency; 
  
 (viii) A letter from each of the Rating Agencies giving each Class of Notes set forth on Schedule A the rating set forth on Schedule A;
and 
  
 (ix) Such other documents, certificates
(including additional representations and warranties) and opinions as may be reasonably necessary to secure the intended ratings from each Rating Agency for the Notes. 
  
 (3) The Notes to be sold to the Underwriters pursuant to the Underwriting Agreement shall have been issued
and sold to the Underwriters. 
  
 (4) The
Mortgage Loan Seller shall have furnished to the Purchaser such other certificates of its officers or others and such other documents and opinions of counsel to evidence fulfillment of the conditions set forth in this Agreement and the transactions
contemplated hereby as the Purchaser and its counsel may reasonably request. 
  

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 (b) The obligations of the Mortgage Loan Seller under this Agreement shall be subject to the
satisfaction, on or prior to the Closing Date, of the following conditions: 
  
 (1) The obligations of the Purchaser required to be performed by it on or prior to the Closing Date pursuant to the terms of this Agreement shall have been duly performed and complied with in all material respects,
and all of the representations and warranties of the Purchaser under this Agreement shall be true and correct in all material respects as of the date hereof and as of the Closing Date, and no event shall have occurred which would constitute a breach
by it of the terms of this Agreement, and the Mortgage Loan Seller shall have received a certificate to that effect signed by an authorized officer of the Purchaser. 
  
 (2) The Mortgage Loan Seller shall have received copies of all of the following closing documents, in such
forms as are agreed upon and reasonably acceptable to the Mortgage Loan Seller, duly executed by all signatories other than the Mortgage Loan Seller as required pursuant to the respective terms thereof: 
  
 (i) If required pursuant to Section 3 hereof, the Amendment
dated as of the Closing Date and any documents referred to therein; 
  
 (ii) The Trust Agreement, in form and substance reasonably satisfactory to the Mortgage Loan Seller, and all documents required thereby duly executed by all signatories; 
  
 (iii) The Sale and Servicing Agreement, in form and
substance reasonably satisfactory to the Mortgage Loan Seller, and all documents required thereby duly executed by all signatories; 
  
 (iv) The Indenture, in form and substance reasonably satisfactory to the Mortgage Loan Seller, and all documents required thereby duly
executed by all signatories; 
  
 (v) A
certificate of an officer of the Purchaser dated as of the Closing Date, in a form reasonably acceptable to the Mortgage Loan Seller, and attached thereto the resolutions of the Purchaser authorizing the transactions contemplated by this Agreement
and the Sale and Servicing Agreement, together with copies of the Purchaser’s articles of incorporation, and evidence as to the good standing of the Purchaser dated as of a recent date; 
  
 (vi) One or more opinions of counsel from the
Purchaser’s counsel in form and substance reasonably satisfactory to the Mortgage Loan Seller; and 
  
 (vii) Such other documents, certificates (including additional representations and warranties) and opinions as may be reasonably necessary
to secure the intended rating from each Rating Agency for the Notes; 
  
 (3) The Certificates shall have been transferred to, or at the direction of, the Mortgage Loan Seller. 
  
 Section 11. Fees and Expenses. Subject to Section 16 hereof, the Mortgage Loan Seller shall pay on the Closing Date or such later date as may be
agreed to by the Purchaser (i) the fees and 
  

 E-20 

 expenses of the Mortgage Loan Seller’s attorneys and the reasonable fees and expenses of the Purchaser’s
attorneys, (ii) the fees and expenses of Deloitte & Touche LLP, (iii) the fee for the use of Purchaser’s Registration Statement based on the aggregate original principal amount of the Certificates and the filing fee of the Commission as in
effect on the date on which the Registration Statement was declared effective, (iv) the fees and expenses including counsel’s fees and expenses in connection with any “blue sky” and legal investment matters, (v) the fees and expenses
of the Indenture Trustee which shall include without limitation the fees and expenses of the Indenture Trustee (and the fees and disbursements of its counsel) with respect to (A) legal and document review of this Agreement, the Trust Agreement, the
Indenture, the Sale and Servicing Agreement, the Notes and related agreements, (B) attendance at the Closing and (C) review of the Mortgage Loans to be performed by the Custodian, (vi) the expenses for printing or otherwise reproducing the Notes,
the Prospectus and the Prospectus Supplement, (vii) the fees and expenses of each Rating Agency (both initial and ongoing), (viii) the fees and expenses relating to the preparation and recordation of mortgage assignments (including intervening
assignments, if any and if available, to evidence a complete chain of title from the originator to the Indenture Trustee) from the Mortgage Loan Seller to the Indenture Trustee or the expenses relating to the Opinion of Counsel referred to in
Section 6(a) hereof, as the case may be, and (ix) Mortgage File due diligence expenses and other out-of-pocket expenses incurred by the Purchaser in connection with the purchase of the Mortgage Loans and by Bear Stearns in connection with the sale
of the Notes. The Mortgage Loan Seller additionally agrees to pay directly to any third party on a timely basis the fees provided for above which are charged by such third party and which are billed periodically. 
  
 Section 12. Accountants’ Letters. 
  
 (a) Deloitte & Touche LLP will review the characteristics of a sample of
the Mortgage Loans described in the Final Mortgage Loan Schedule and will compare those characteristics to the description of the Mortgage Loans contained in the Prospectus Supplement under the captions “Summary of Prospectus Supplement-The
Mortgage Loans” and “The Mortgage Pool” and in Schedule A thereto. The Mortgage Loan Seller will cooperate with the Purchaser in making available all information and taking all steps reasonably necessary to permit such accountants to
complete the review and to deliver the letters required of them under the Underwriting Agreement. Deloitte & Touche LLP will also confirm certain calculations as set forth under the caption “Yield On The Notes” in the Prospectus
Supplement. 
  
 (b) To the extent statistical information with
respect to the Master Servicer’s or a Servicer’s servicing portfolio is included in the Prospectus Supplement under the caption “The Master Servicer and the Servicer,” a letter from the certified public accountant for the Master
Servicer and such Servicer or Servicers will be delivered to the Purchaser dated the date of the Prospectus Supplement, in the form previously agreed to by the Mortgage Loan Seller and the Purchaser, with respect to such statistical information.

  
 Section 13. Indemnification. 
  
 (a) The Mortgage Loan Seller shall indemnify and hold harmless the Purchaser
and its directors, officers and controlling persons (as defined in Section 15 of the Securities Act) from and against any loss, claim, damage or liability or action in respect thereof, to which they or any of them may become subject, under the
Securities Act or otherwise, insofar as such loss, claim, damage, 
  

 E-21 

 liability or action arises out of, or is based upon (i) any untrue statement of a material fact contained in the Mortgage
Loan Seller’s Information as identified in Exhibit 3, the omission to state in the Prospectus Supplement or Prospectus (or any amendment thereof or supplement thereto approved by the Mortgage Loan Seller and in which additional Mortgage Loan
Seller’s Information is identified), in reliance upon and in conformity with Mortgage Loan Seller’s Information a material fact required to be stated therein or necessary to make the statements therein in light of the circumstances in
which they were made, not misleading, (ii) any representation or warranty assigned or made by the Mortgage Loan Seller in Section 7 or Section 8 hereof being, or alleged to be, untrue or incorrect, or (iii) any failure by the Mortgage Loan Seller to
perform its obligations under this Agreement; and the Mortgage Loan Seller shall reimburse the Purchaser and each other indemnified party for any legal and other expenses reasonably incurred by them in connection with investigating or defending or
preparing to defend against any such loss, claim, damage, liability or action. 
  
 The foregoing indemnity agreement is in addition to any liability which the Mortgage Loan Seller otherwise may have to the Purchaser or any other such indemnified party. 
  
 (b) The Purchaser shall indemnify and hold harmless the Mortgage Loan Seller
and its respective directors, officers and controlling persons (as defined in Section 15 of the Securities Act) from and against any loss, claim, damage or liability or action in respect thereof, to which they or any of them may become subject,
under the Securities Act or otherwise, insofar as such loss, claim, damage, liability or action arises out of, or is based upon (i) any untrue statement of a material fact contained in the Purchaser’s Information as identified in Exhibit 4, the
omission to state in the Prospectus Supplement or Prospectus (or any amendment thereof or supplement thereto approved by the Purchaser and in which additional Purchaser’s Information is identified), in reliance upon and in conformity with the
Purchaser’s Information, a material fact required to be stated therein or necessary to make the statements therein in light of the circumstances in which they were made, not misleading, (ii) any representation or warranty made by the Purchaser
in Section 9 hereof being, or alleged to be, untrue or incorrect, or (iii) any failure by the Purchaser to perform its obligations under this Agreement; and the Purchaser shall reimburse the Mortgage Loan Seller, and each other indemnified party for
any legal and other expenses reasonably incurred by them in connection with investigating or defending or preparing to defend any such loss, claim, damage, liability or action. The foregoing indemnity agreement is in addition to any liability which
the Purchaser otherwise may have to the Mortgage Loan Seller, or any other such indemnified party, 
  
 (c) Promptly after receipt by an indemnified party under subsection (a) or (b) above of notice of the commencement of any action, such indemnified party
shall, if a claim in respect thereof is to be made against the indemnifying party under such subsection, notify each party against whom indemnification is to be sought in writing of the commencement thereof (but the failure so to notify an
indemnifying party shall not relieve it from any liability which it may have under this Section 13 except to the extent that it has been prejudiced in any material respect by such failure or from any liability which it may have otherwise). In case
any such action is brought against any indemnified party, and it notifies an indemnifying party of the commencement thereof, the indemnifying party will be entitled to participate therein and, to the extent it may elect by written notice delivered
to the indemnified party promptly (but, in any event, within 30 days) after receiving the aforesaid notice from such indemnified party, to assume the defense thereof with counsel reasonably satisfactory to such indemnified party. Notwithstanding the
foregoing, the indemnified party or parties shall have the right to employ its or their own counsel in any such case, but the fees and expenses of such counsel 
  

 E-22 

 shall be at the expense of such indemnified party or parties unless (i) the employment of such counsel shall have been
authorized in writing by one of the indemnifying parties in connection with the defense of such action, (ii) the indemnifying parties shall not have employed counsel to have charge of the defense of such action within a reasonable time after notice
of commencement of the action, or (iii) such indemnified party or parties shall have reasonably concluded that there is a conflict of interest between itself or themselves and the indemnifying party in the conduct of the defense of any claim or that
the interests of the indemnified party or parties are not substantially co-extensive with those of the indemnifying party (in which case the indemnifying parties shall not have the right to direct the defense of such action on behalf of the
indemnified party or parties), in any of which events such fees and expenses shall be borne by the indemnifying parties; provided, however, that the indemnifying party shall be liable only for the fees and expenses of one counsel in addition to one
local counsel in the jurisdiction involved. Anything in this subsection to the contrary notwithstanding, an indemnifying party shall not be liable for any settlement or any claim or action effected without its written consent; provided, however,
that such consent was not unreasonably withheld. 
  
 (d) If the
indemnification provided for in paragraphs (a) and (b) of this Section 13 shall for any reason be unavailable to an indemnified party in respect of any loss, claim, damage or liability, or any action in respect thereof, referred to in Section 13,
then the indemnifying party shall in lieu of indemnifying the indemnified party contribute to the amount paid or payable by such indemnified party as a result of such loss, claim, damage or liability, or action in respect thereof, in such proportion
as shall be appropriate to reflect the relative benefits received by the Mortgage Loan Seller on the one hand and the Purchaser on the other from the purchase and sale of the Mortgage Loans, the transfer of the Certificates to the Mortgage Loan
Seller, the offering of the Notes and the other transactions contemplated hereunder. No person found liable for a fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any
person who is not also found liable for such fraudulent misrepresentation. 
  
 (e) The parties hereto agree that reliance by an indemnified party on any publicly available information or any information or directions furnished by an indemnifying party shall not constitute negligence, bad faith
or willful misconduct by such indemnified party. 
  
 Section 14.
Notices. All demands, notices and communications hereunder shall be in writing but may be delivered by facsimile transmission subsequently confirmed in writing. Notices to the Mortgage Loan Seller shall be directed to EMC Mortgage
Corporation, Mac Arthur Ridge II, 909 Hidden Ridge Drive, Suite 200, Irving, Texas 75038 (Telecopy: (972-444-2880)), and notices to the Purchaser shall be directed to Structured Asset Mortgage Investments II Inc., 383 Madison Avenue, New York, New
York 10179 (Telecopy: (212-272-7206)), Attention: Baron Silverstein; or to any other address as may hereafter be furnished by one party to the other party by like notice. Any such demand, notice or communication hereunder shall be deemed to have
been received on the date received at the premises of the addressee (as evidenced, in the case of registered or certified mail, by the date noted on the return receipt) provided that it is received on a business day during normal business hours and,
if received after normal business hours, then it shall be deemed to be received on the next business day. 
  
 Section 15. Transfer of Mortgage Loans. The Purchaser retains the right to assign the Mortgage Loans and any or all of its interest under this
Agreement to the Issuer, with the understanding that the Issuer will then assign such rights to the Indenture Trustee pursuant to the 
  

 E-23 

 Indenture, without the consent of the Mortgage Loan Seller, and, upon such assignment, the Indenture Trustee, as the
ultimate assignee, shall succeed to the applicable rights and obligations of the Purchaser hereunder; provided, however, the Purchaser shall remain entitled to the benefits set forth in Sections 11, 13 and 17 hereto and as provided in Section 2(a).
Notwithstanding the foregoing, the sole and exclusive right and remedy of the Issuer or the Indenture Trustee with respect to a breach of representation or warranty of the Mortgage Loan Seller shall be the purchase or substitution obligations of the
Mortgage Loan Seller contained in Sections 5 and 7 hereof. 
  
 Section 16. Termination. This Agreement may be terminated (a) by the mutual consent of the parties hereto prior to the Closing Date, (b) by the Purchaser, if the conditions to the Purchaser’s obligation to close set forth under
Section 10(a) hereof are not fulfilled as and when required to be fulfilled or (c) by the Mortgage Loan Seller, if the conditions to the Mortgage Loan Seller’s obligation to close set forth under Section 10(b) hereof are not fulfilled as and
when required to be fulfilled. In the event of termination pursuant to clause (b), the Mortgage Loan Seller shall pay, and in the event of termination pursuant to clause (c), the Purchaser shall pay, all reasonable out-of-pocket expenses incurred by
the other in connection with the transactions contemplated by this Agreement. In the event of a termination pursuant to clause (a), each party shall be responsible for its own expenses. 
  
 Section 17. Representations, Warranties and Agreements to Survive Delivery. All representations, warranties and
agreements contained in this Agreement, or contained in certificates of officers of the Mortgage Loan Seller submitted pursuant hereto, shall remain operative and in full force and effect and shall survive delivery of the Mortgage Loans to the
Purchaser, delivery by the Purchaser to the Issuer and the pledge by the Issuer to the Indenture Trustee on behalf of the Noteholders. Subsequent to the delivery of the Mortgage Loans to the Purchaser, the Mortgage Loan Seller’s representations
and warranties contained herein with respect to the Mortgage Loans shall be deemed to relate to the Mortgage Loans actually delivered to the Purchaser and included in the Final Mortgage Loan Schedule and any Substitute Mortgage Loan and not to those
Mortgage Loans deleted from the Preliminary Mortgage Loan Schedule pursuant to Section 3 hereof prior to the Closing. 
  
 Section 18. Severability. If any provision of this Agreement shall be prohibited or invalid under applicable law, the Agreement shall be
ineffective only to such extent, without invalidating the remainder of this Agreement. 
  
 Section 19. Counterparts. This Agreement may be executed in counterparts, each of which will be an original, but which together shall constitute one and the same agreement. 
  
 Section 20. Amendment. This Agreement cannot be amended or modified in
any manner without the prior written consent of each party. 
  
 Section 21. GOVERNING LAW. THIS AGREEMENT SHALL BE DEEMED TO HAVE BEEN MADE AND PERFORMED IN THE STATE OF NEW YORK AND SHALL BE INTERPRETED IN ACCORDANCE WITH THE LAWS OF SUCH STATE, WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES OF
SUCH STATE. 
  

 E-24 

 Section 22. Further Assurances. Each of the parties agrees to execute and deliver such instruments
and take such actions as another party may, from time to time, reasonably request in order to effectuate the purpose and to carry out the terms of this Agreement including any amendments hereto which may be required by each of the Rating Agencies.

  
 Section 23. Successors and Assigns. This Agreement
shall bind and inure to the benefit of and be enforceable by the Mortgage Loan Seller and the Purchaser and their permitted successors and assigns and, to the extent specified in Section 13 hereof, Bear Stearns, and their directors, officers and
controlling persons (within the meaning of federal securities laws). The Mortgage Loan Seller acknowledges and agrees that the Purchaser may assign its rights under this Agreement (including, without limitation, with respect to the Mortgage Loan
Seller’s representations and warranties respecting the Mortgage Loans) to Issuer and that the Issuer may further assign such rights to the Indenture Trustee. Any person into which the Mortgage Loan Seller may be merged or consolidated (or any
person resulting from any merger or consolidation involving the Mortgage Loan Seller), any person resulting from a change in form of the Mortgage Loan Seller or any person succeeding to the business of the Mortgage Loan Seller, shall be considered
the “successor” of the Mortgage Loan Seller hereunder and shall be considered a party hereto without the execution or filing of any paper or any further act or consent on the part of any party hereto. Except as provided in the two
preceding sentences, this Agreement cannot be assigned, pledged or hypothecated by either party hereto without the written consent of the other parties to this Agreement and any such assignment or purported assignment shall be deemed null and void.

  
 Section 24. The Mortgage Loan Seller. The Mortgage Loan
Seller will keep in full effect all rights as are necessary to perform their respective obligations under this Agreement. 
  
 Section 25. Entire Agreement. This Agreement contains the entire agreement and understanding between the parties with respect to the subject matter
hereof, and supersedes all prior and contemporaneous agreements, understandings, inducements and conditions, express or implied, oral or written, of any nature whatsoever with respect to the subject matter hereof. 
  
 Section 26. No Partnership. Nothing herein contained shall be deemed
or construed to create a partnership or joint venture between the parties hereto. 
  
 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 
  

 E-25 

 IN WITNESS WHEREOF, the parties hereto have caused their names to be signed hereto by their respective
duly authorized officers as of the date first above written. 
  

			
	 EMC MORTGAGE CORPORATION
  

	 By:
	 	  

	 Name:
	 	 Dana Dillard

	 Title:
	 	 Senior Vice President
  

	 STRUCTURED ASSET MORTGAGE
 INVESTMENTS II INC.
  

	 By:
	 	  

	 Name:
	 	 Baron Silverstein

	 Title:
	 	 Vice President

  

 E-26 

 EXHIBIT 1 
  
 CONTENTS OF MORTGAGE FILE 
  
 With respect to each Mortgage Loan, the Mortgage File shall include each of the following items, which shall be available for inspection by the Purchaser
or its designee, and which shall be delivered to the Purchaser or its designee pursuant to the terms of the Agreement. 
  
 (a) with respect to each Mortgage Loan: 
  
 1. The original Mortgage Note, endorsed without recourse in blank or to the order of the Indenture Trustee and showing an unbroken chain
of endorsements from the originator thereof to the Person endorsing it in blank or to the Indenture Trustee, or a lost note affidavit together with a copy of the related Mortgage Note; 
  
 2. The original Mortgage and, if the related Mortgage Loan is a MOM Loan, noting the presence of the MIN and
language indicating that such Mortgage Loan is a MOM Loan, which shall have been recorded (or if the original is not available, a copy), with evidence of such recording indicated thereon (or if the original Security Instrument, assignments to the
Indenture Trustee or intervening assignments thereof which have been delivered, are being delivered or will, upon receipt of recording information relating to the Security Instrument required to be included thereon, be delivered to recording offices
for recording and have not been returned to the Seller in time to permit their recording as specified in Section 2.01(b) of the Sale and Servicing Agreement, shall be in recordable form); 
  
 3. unless the Mortgage Loan is a MOM Loan, a certified copy
of the assignment (which may be in the form of a blanket assignment if permitted in the jurisdiction in which the Mortgaged Property is located) in blank or to “U.S. Bank National Association, as Indenture Trustee”, with evidence of
recording with respect to each Mortgage Loan in the name of the Indenture Trustee thereon (or if (A) the original Security Instrument, assignments to the Indenture Trustee or intervening assignments thereof which have been delivered, are being
delivered or will, upon receipt of recording information relating to the Security Instrument required to be included thereon, be delivered to recording offices for recording and have not been returned to the Seller in time to permit their delivery
as specified in Section 2.01(b) of the Sale and Servicing Agreement, the Seller may deliver a true copy thereof with a certification by the Seller, on the face of such copy, substantially as follows: “Certified to be a true and correct copy of
the original, which has been transmitted for recording” or (B) the related Mortgaged Property is located in a state other than Maryland and an Opinion of Counsel has been provided as set forth in Section 2.01(b) of the Sale and Servicing
Agreement, shall be in recordable form); 
  
 4.
all intervening assignments of the Security Instrument, if applicable and only to the extent available to the Mortgage Loan Seller with evidence of recording thereon; 
  
 5. the original or a copy of the policy or certificate of primary mortgage guaranty insurance, to the extent
available, if any; 
  

 E-27 

 6. the original or copy of the policy of title insurance or mortgagee’s certificate
of title insurance or commitment or binder for title insurance; and 
  
 7. originals of all modification agreements, if applicable and available. 
  

 E-28 

 EXHIBIT 2 
  
 MORTGAGE LOAN SCHEDULE INFORMATION 
  
 The Preliminary and Final Mortgage Loan Schedules shall set forth the following information with respect to each Mortgage Loan: 
  

	 	(a)	the loan number; 

  

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

  

	 	(c)	the property type; 

  

	 	(d)	the Mortgage Interest Rate; 

  

	 	(e)	the Servicing Fee Rate; 

  

	 	(f)	the Net Rate; 

  

	 	(g)	the original term to maturity; 

  

	 	(h)	the maturity date; 

  

	 	(i)	the stated remaining term to maturity; 

  

	 	(j)	the original principal balance; 

  

	 	(k)	the first payment date; 

  

	 	(l)	the Monthly Payment in effect as of the Cut-off Date; 

  

	 	(m)	the Cut-off Date Principal Balance; 

  

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

  

	 	(o)	the paid-through date of the Mortgage Loan; 

  

	 	(p)	the insurer of any Primary Mortgage Insurance Policy; 

  

	 	(q)	the Index and Gross Margin, if applicable; 

  

	 	(r)	the Maximum Lifetime Mortgage Rate, if applicable; 

  

	 	(s)	the Minimum Lifetime Mortgage Rate, if applicable; 

  

	 	(t)	the Adjustment Date frequency, if applicable; 

  

	 	(u)	the number of days delinquent, if any; and 

  

	 	(v)	the Loan Group. 

  

 E-29 

 Such schedule also shall set forth the total number of Mortgage Loans, the total of each of the amounts
described under (k) and (n) above for all of the Mortgage Loans, the weighted average by principal balance as of the Cut-off Date of each of the rates described under (e), (f) and (g) above for all of the Mortgage Loans, and the weighted average
remaining term to maturity by unpaid principal balance as of the Cut-off Date for all of the Mortgage Loans. 
  

 E-30 

 EXHIBIT 3 
  
 MORTGAGE LOAN SELLER’S INFORMATION 
  
 All information in the Prospectus Supplement described under the following Sections: “SUMMARY OF PROSPECTUS SUPPLEMENT - The Mortgage Loans,”
“THE MORTGAGE POOL” and “SCHEDULE A - CERTAIN CHARACTERISTICS OF THE MORTGAGE LOANS.” 
  

 E-31 

 EXHIBIT 4 
  
 PURCHASER’S INFORMATION 
  
 All information in the Prospectus Supplement and the Prospectus, except the Mortgage Loan Seller’s Information. 
  

 E-32 

 EXHIBIT 5 
  
 SCHEDULE OF LOST NOTES 
  
 Available Upon Request 
  

 E-33 

 EXHIBIT 6 
  
 STANDARD & POOR’S LEVELS GLOSSARY, 
  
 VERSION 5.6 REVISED, APPENDIX E 
  
 APPENDIX E: Standard & Poor’s Predatory Lending Categorization 
  
 REVISED July 7, 2004 
  
 Standard & Poor’s has categorized loans governed by anti-predatory lending laws in the Jurisdictions listed below into three categories based upon a combination
of factors that include (a) the risk exposure associated with the assignee liability and (b) the tests and thresholds set forth in those laws. Note that certain loans classified by the relevant statute as Covered are included in Standard &
Poor’s High Cost Loan Category because they included thresholds and tests that are typical of what is generally considered High Cost by the industry. 
  

					
	 State/Jurisdiction

	 	 Name of Anti-Predatory Lending
 Law/Effective Date

	 	 Category under Applicable
 Anti-Predatory Lending Law

	 Arkansas
	 	 Arkansas Home Loan Protection Act, Ark. Code Ann. §§ 23-53-101 et seq.
 Effective July 16, 2003
	 	High Cost Home Loan
			
	 Cleveland Heights, OH
	 	 Ordinance No. 72-2003 (PSH), Mun. Code §§ 757.01 et seq.
 Effective June 2, 2003
	 	Covered Loan
			
	 Colorado
	 	 Consumer Equity Protection, Colo. Stat. Ann. §§ 5-3.5-101 et seq.
 Effective for covered loans offered or entered into on or after January 1, 2003. Other provisions of the Act took effect on June 7, 2002
	 	Covered Loan
			
	 Connecticut
	 	 Connecticut Abusive Home Loan Lending Practices Act, Conn. Gen. Stat. §§ 36a-746 et seq.
 Effective October 1, 2001
	 	High Cost Home Loan
			
	 District of Columbia
	 	 Home Loan Protection Act, D.C. Code §§ 26-1151.01 et seq.
 Effective for loans closed on or after January 28, 2003
	 	Covered Loan
			
	 Florida
	 	 Fair Lending Act, Fla. Stat. Ann. §§ 494.0078 et seq.
 Effective October 2, 2002
	 	High Cost Home Loan
			
	 Georgia (Oct. 1, 2002 - Mar. 6, 2003)
	 	 Georgia Fair Lending Act, Ga. Code Ann. §§ 7-6A-1 et seq.
 Effective October 1, 2002 - March 6, 2003
	 	High Cost Home Loan

  

 E-34 

					
			
	Georgia as amended (Mar. 7, 2003 - current)	 	 Georgia Fair Lending Act, Ga. Code Ann. §§ 7-6A-1 et seq.
 Effective for loans closed on or after March 7, 2003
	 	High Cost Home Loan
			
	 HOEPA Section 32
	 	 Home Ownership and Equity Protection Act of 1994, 15 U.S.C. § 1639, 12 C.F.R. §§ 226.32 and 226.34
 Effective October 1, 1995, amendments October 1, 2002
	 	High Cost Loan
			
	 Illinois
	 	 High Risk Home Loan Act, Ill. Comp. Stat. tit. 815, §§ 137/5 et seq.
 Effective January 1, 2004 (prior to this date, regulations under Residential Mortgage License Act effective from May 14, 2001)
	 	High Risk Home Loan
			
	 Kansas
	 	 Consumer Credit Code, Kan. Stat. Ann. §§ 16a-1-101 et seq.
 Sections 16a-1-301 and 16a-3-207 became effective April 14, 1999; Section 16a-3-308a became effective July 1, 1999
	 	 High Loan to Value Consumer Loan (id. § 16a-3-207) and;
 High APR Consumer Loan (id. § 16a-3-308a)

			
	 Kentucky
	 	 2003 KY H.B. 287 - High Cost Home Loan Act, Ky. Rev. Stat. §§ 360.100 et seq.
 Effective June 24, 2003
	 	High Cost Home Loan
			
	 Maine
	 	 Truth in Lending, Me. Rev. Stat. tit. 9-A, §§ 8-101 et seq.
 Effective September 29, 1995 and as amended from time to time
	 	High Rate High Fee Mortgage
			
	 Massachusetts
	 	 Part 40 and Part 32, 209 C.M.R. §§ 32.00 et seq. and 209 C.M.R. §§ 40.01 et seq.
 Effective March 22, 2001 and amended from time to time
	 	High Cost Home Loan
			
	 Nevada
	 	 Assembly Bill No. 284, Nev. Rev. Stat. §§ 598D.010 et seq.
 Effective October 1, 2003
	 	Home Loan
			
	 New Jersey
	 	 New Jersey Home Ownership Security Act of 2002, N.J. Rev. Stat. §§ 46:10B-22 et seq.
 Effective for loans closed on or after November 27, 2003
	 	High Cost Home Loan

  

 E-35 

					
			
	 New Mexico
	 	 Home Loan Protection Act, N.M. Rev. Stat. §§ 58-21A-1 et seq.
 Effective as of January 1, 2004; Revised as of February 26, 2004
	 	High Cost Home Loan
			
	 New York
	 	 N.Y. Banking Law Article 6-l
 Effective for applications
made on or after April 1, 2003
	 	High Cost Home Loan
			
	 North Carolina
	 	 Restrictions and Limitations on High Cost Home Loans, N.C. Gen. Stat. §§ 24-1.1E et seq.
 Effective July 1, 2000; amended October 1, 2003 (adding open-end lines of credit)
	 	High Cost Home Loan
			
	 Ohio
	 	 H.B. 386 (codified in various sections of the Ohio Code), Ohio Rev. Code Ann. §§ 1349.25 et seq.
 Effective May 24, 2002
	 	Covered Loan
			
	 Oklahoma
	 	 Consumer Credit Code (codified in various sections of Title 14A)
 Effective July 1, 2000; amended effective January 1, 2004
	 	Subsection 10 Mortgage
			
	 South Carolina
	 	 South Carolina High Cost and Consumer Home Loans Act, S.C. Code Ann. §§ 37-23-10 et seq.
 Effective for loans taken on or after January 1, 2004
	 	High Cost Home Loan
			
	 West Virginia
	 	 West Virginia Residential Mortgage Lender, Broker and Servicer Act, W. Va. Code Ann. §§ 31-17-1 et seq.
 Effective June 5, 2002
	 	West Virginia Mortgage Loan Act Loan
			
	 Georgia (Oct. 1, 2002 - Mar. 6, 2003)
	 	 Georgia Fair Lending Act, Ga. Code Ann. §§ 7-6A-1 et seq.
 Effective October 1, 2002 - March 6, 2003
	 	Covered Loan
			
	 New Jersey
	 	 New Jersey Home Ownership Security Act of 2002, N.J. Rev. Stat. §§ 46:10B-22 et seq.
 Effective November 27, 2003 - July 5, 2004
	 	Covered Home Loan
			
	 North Carolina
	 	 Restrictions and Limitations on High Cost Home Loans, N.C. Gen. Stat. §§ 24-1.1E et seq.
 Effective July 1, 2000; amended October 1, 2003 (adding open-end lines of credit)
	 	Consumer Home Loan
			
	 South Carolina
	 	 South Carolina High Cost and Consumer Home Loans Act, S.C. Code Ann. §§ 37-23-10 et seq.
 Effective for loans taken on or after January 1, 2004
	 	Consumer Home Loan

  

 E-36 

 SCHEDULE A 
  
 REQUIRED RATINGS FOR EACH CLASS OF NOTES 
  
 Notes 
  

			
	 Class

	  	S&P/Moody’s

	 Class A
	  	AAA/Aaa
	 Class M-1
	  	AA/Aa2
	 Class M-2
	  	A/A2
	 Class B
	  	BBB/Baa2

  
 None of the above
ratings has been lowered since the respective dates of such letters. 
  

 E-37 

 SCHEDULE B 
  
 MORTGAGE LOAN SCHEDULE 
  
 [Provided upon request] 
  

 E-38 

 EXHIBIT F 
  

SPECIAL SERVICING AGREEMENT 
  
 [Provided Upon Request] 
  

 F -1Indenture, dated as of July 30, 2004

 EXHIBIT 10.20 
  
 HOMEBANC MORTGAGE TRUST 2004-1 
  
 Issuer 
  
 WELLS FARGO BANK, NATIONAL ASSOCIATION, 
  
 Securities Administrator 
  
 and

  
 U.S. BANK NATIONAL ASSOCIATION 
  
 Indenture Trustee 
  

  
 INDENTURE 
  
 Dated as of July 30, 2004 
  

  

MORTGAGE-BACKED NOTES 
  

  

 TABLE OF CONTENTS 
  

							
	 Section

	  	Page

	 ARTICLE I Definitions
	  	 
	 	  	Section 1.01	  	Definitions	  	2
	 	  	Section 1.02	  	Incorporation by Reference of Trust Indenture Act	  	2
	 	  	Section 1.03	  	Rules of Construction	  	2
		
	 ARTICLE II Original Issuance of Notes
	  	 
	 	  	Section 2.01	  	Form	  	4
	 	  	Section 2.02	  	Execution, Authentication and Delivery	  	4
		
	 ARTICLE III Covenants
	  	 
	 	  	Section 3.01	  	Maintenance of Payment Account	  	5
	 	  	Section 3.02	  	Maintenance of Office or Agency	  	5
	 	  	Section 3.03	  	Money for Payments To Be Held in Trust; Paying Agent	  	5
	 	  	Section 3.04	  	Existence	  	7
	 	  	Section 3.05	  	Payment of Principal and Interest	  	7
	 	  	Section 3.06	  	Protection of Trust Estate	  	11
	 	  	Section 3.07	  	Opinions as to Trust Estate	  	12
	 	  	Section 3.08	  	Performance of Obligations	  	13
	 	  	Section 3.09	  	Negative Covenants	  	13
	 	  	Section 3.10	  	Annual Statement as to Compliance	  	14
	 	  	Section 3.11	  	[Reserved]	  	14
	 	  	Section 3.12	  	Representations and Warranties Concerning the Mortgage Loans	  	14
	 	  	Section 3.13	  	Amendments to Sale and Servicing Agreement	  	15
	 	  	Section 3.14	  	Master Servicer as Agent and Bailee of the Indenture Trustee	  	15
	 	  	Section 3.15	  	Investment Company Act	  	15
	 	  	Section 3.16	  	Issuer May Consolidate, etc	  	16
	 	  	Section 3.17	  	Successor or Transferee	  	18
	 	  	Section 3.18	  	No Other Business	  	18
	 	  	Section 3.19	  	No Borrowing	  	18
	 	  	Section 3.20	  	Guarantees, Loans, Advances and Other Liabilities	  	18
	 	  	Section 3.21	  	Capital Expenditures	  	18
	 	  	Section 3.22	  	Determination of Note Interest Rate	  	18
	 	  	Section 3.23	  	Restricted Payments	  	19
	 	  	Section 3.24	  	Notice of Events of Default	  	19
	 	  	Section 3.25	  	Further Instruments and Acts	  	19
	 	  	Section 3.26	  	Certain Representations Regarding the Trust Estate	  	19
	 	  	Section 3.27	  	Allocation of Realized Losses.	  	20
		
	 ARTICLE IV The Notes; Satisfaction and Discharge of Indenture
	  	 
	 	  	Section 4.01	  	The Notes	  	22
	 	  	Section 4.02	  	Registration of and Limitations on Transfer and Exchange of Notes; Appointment of Note Registrar and Certificate Registrar	  	22

  

 i 

							
	 	  	 Section 4.03
	  	Mutilated, Destroyed, Lost or Stolen Notes	  	23
	 	  	Section 4.04	  	Persons Deemed Owners	  	24
	 	  	Section 4.05	  	Cancellation	  	24
	 	  	Section 4.06	  	Book-Entry Notes	  	24
	 	  	Section 4.07	  	Notices to Depository	  	25
	 	  	Section 4.08	  	Definitive Notes	  	25
	 	  	Section 4.09	  	Tax Treatment	  	26
	 	  	Section 4.10	  	Satisfaction and Discharge of Indenture	  	26
	 	  	Section 4.11	  	Application of Trust Money	  	28
	 	  	Section 4.12	  	[Reserved]	  	28
	 	  	Section 4.13	  	Repayment of Monies Held by Paying Agent	  	28
	 	  	Section 4.14	  	Temporary Notes	  	28
	 	  	Section 4.15	  	Representation Regarding ERISA	  	28
		
	ARTICLE V Default and Remedies	  	 
	 	  	Section 5.01	  	Events of Default	  	29
	 	  	Section 5.02	  	Acceleration of Maturity; Rescission and Annulment	  	29
	 	  	Section 5.03	  	Collection of Indebtedness and Suits for Enforcement by Indenture Trustee	  	30
	 	  	Section 5.04	  	Remedies; Priorities	  	32
	 	  	Section 5.05	  	Optional Preservation of the Trust Estate	  	34
	 	  	Section 5.06	  	Limitation of Suits	  	34
	 	  	Section 5.07	  	Unconditional Rights of Noteholders To Receive Principal and Interest	  	35
	 	  	Section 5.08	  	Restoration of Rights and Remedies	  	36
	 	  	Section 5.09	  	Rights and Remedies Cumulative	  	36
	 	  	Section 5.10	  	Delay or Omission Not a Waiver	  	36
	 	  	Section 5.11	  	Control By Noteholders.	  	36
	 	  	Section 5.12	  	Waiver of Past Defaults	  	37
	 	  	Section 5.13	  	Undertaking for Costs	  	37
	 	  	Section 5.14	  	Waiver of Stay or Extension Laws	  	37
	 	  	Section 5.15	  	Sale of Trust Estate	  	38
	 	  	Section 5.16	  	Action on Notes	  	40
	 	  	Section 5.17	  	Performance and Enforcement of Certain Obligations	  	40
		
	 ARTICLE VI The Indenture Trustee and Securities Administrator
	  	 
	 	  	Section 6.01	  	Duties of Indenture Trustee and Securities Administrator	  	41
	 	  	Section 6.02	  	Rights of Indenture Trustee and Securities Administrator	  	42
	 	  	Section 6.03	  	Individual Rights of Indenture Trustee	  	45
	 	  	Section 6.04	  	Indenture Trustee’s and Securities Administrator’s Disclaimers	  	45
	 	  	Section 6.05	  	Notice of Event of Default	  	46
	 	  	Section 6.06	  	Reports by Indenture Trustee to Holders and Tax Administration	  	46
	 	  	Section 6.07	  	Compensation	  	46
	 	  	Section 6.08	  	Replacement of Indenture Trustee and the Securities Administrator	  	47
	 	  	Section 6.09	  	Successor Indenture Trustee and Securities Administrator by Merger	  	48
	 	  	Section 6.10	  	Appointment of Co-Indenture Trustee or Separate Indenture Trustee	  	49
	 	  	Section 6.11	  	Eligibility; Disqualification	  	50
	 	  	Section 6.12	  	Preferential Collection of Claims Against Issuer	  	50

  

 ii 

							
	 	  	Section 6.13	  	Representations and Warranties	  	50
	 	  	Section 6.14	  	Directions to Indenture Trustee	  	51
	 	  	Section 6.15	  	The Agents	  	51
		
	ARTICLE VII Noteholders’ Lists and Reports	  	 
	 	  	Section 7.01	  	Issuer To Furnish Indenture Trustee Names and Addresses of Noteholders	  	52
	 	  	Section 7.02	  	Preservation of Information; Communications to Noteholders	  	52
	 	  	Section 7.03	  	Statements to Noteholders	  	52
		
	ARTICLE VIII Accounts, Disbursements and Releases	  	 
	 	  	Section 8.01	  	Collection of Money	  	57
	 	  	Section 8.02	  	Reserved	  	57
	 	  	Section 8.03	  	Officer’s Certificate	  	57
	 	  	Section 8.04	  	Termination Upon Distribution to Noteholders	  	57
	 	  	Section 8.05	  	Release of Trust Estate	  	57
	 	  	Section 8.06	  	Surrender of Notes Upon Final Payment	  	58
	 	  	Section 8.07	  	Optional Redemption of the Notes	  	58
		
	ARTICLE IX Supplemental Indentures	  	 
	 	  	Section 9.01	  	Supplemental Indentures Without Consent of Noteholders	  	60
	 	  	Section 9.02	  	Supplemental Indentures With Consent of Noteholders	  	61
	 	  	Section 9.03	  	Execution of Supplemental Indentures	  	63
	 	  	Section 9.04	  	Effect of Supplemental Indenture	  	63
	 	  	Section 9.05	  	Conformity with Trust Indenture Act	  	63
	 	  	Section 9.06	  	Reference in Notes to Supplemental Indentures	  	64
		
	ARTICLE X Miscellaneous	  	 
	 	  	Compliance Certificates and Opinions, etc	  	65
	 	  	Section 10.02	  	Form of Documents Delivered to Indenture Trustee	  	66
	 	  	Section 10.03	  	Acts of Noteholders	  	67
	 	  	Section 10.04	  	Notices etc., to Indenture Trustee, Securities Administrator, Issuer and Rating Agencies	  	68
	 	  	Section 10.05	  	Notices to Noteholders; Waiver	  	69
	 	  	Section 10.06	  	Conflict with Trust Indenture Act	  	69
	 	  	Section 10.07	  	Effect of Headings	  	69
	 	  	Section 10.09	  	Separability	  	70
	 	  	Section 10.10	  	[Reserved]	  	70
	 	  	Section 10.11	  	Legal Holidays	  	70
	 	  	Section 10.12	  	GOVERNING LAW	  	70
	 	  	Section 10.13	  	Counterparts	  	70
	 	  	Section 10.14	  	Recording of Indenture	  	70
	 	  	Section 10.15	  	Issuer Obligation	  	70
	 	  	Section 10.16	  	No Petition	  	71
	 	  	Section 10.17	  	Inspection	  	71

  

 iii 

 EXHIBITS 
  

					
			
	Exhibit A-1	  	—	  	Form of Class [I][II]-A Notes
	Exhibit A-2	  	—	  	Form of Class [I][II]-B Notes
	Exhibit A-3	  	—	  	Form of Class [I][II]-M-[1][2] Notes
			
	Appendix A	  	—	  	Definitions

  

 iv 

 This Indenture, dated as of July 30, 2004, is entered into between HomeBanc Mortgage Trust 2004-1, a
Delaware statutory trust, as Issuer (the “Issuer”), Wells Fargo Bank, National Association, as Securities Administrator (the “Securities Administrator”), and U.S. Bank National Association, a national banking association, as
Indenture Trustee (the “Indenture Trustee”). 
  
 WITNESSETH THAT: 
  
 Each party hereto agrees as follows
for the benefit of the other party and for the equal and ratable benefit of the Holders of the Issuer’s HomeBanc Mortgage Trust 2004-1, Mortgage-Backed Notes, Series 2004-1 (the “Notes”). 
  
 GRANTING CLAUSE 
  
 The Issuer hereby Grants to the Indenture Trustee at the Closing Date, as trustee for the benefit of the Holders of the
Notes, all of the Issuer’s right, title and interest in and to whether now existing or hereafter created by (a) the Mortgage Loans, Substitute Mortgage Loans and the proceeds thereof and all rights under the Related Documents; (b) all funds on
deposit from time to time in the Protected Account excluding any investment income from such funds; (c) all funds on deposit from time to time in the Master Servicer Collection Account allocable to the Mortgage Loans excluding any investment income
from such funds; (d) all funds on deposit from time to time in the Payment Account; (e) any REO Property, (f) the Required Insurance Policies and any amounts paid or payable by the insurer under any Insurance Policy (to the extent the mortgagee has
a claim thereto), (g) all rights under (i) the Mortgage Loan Purchase Agreement as assigned to the Issuer to the extent provided in Subsection 2.03(a) of the Sale and Servicing Agreement and (ii) the rights with respect to the HomeBanc Servicing
Agreement as assigned to the Issuer by the Assignment Agreement; and (h) all present and future claims, demands, causes and choses in action in respect of any or all of the foregoing and all payments on or under, and all proceeds of every kind and
nature whatsoever in respect of, any or all of the foregoing and all payments on or under, and all proceeds of every kind and nature whatsoever in the conversion thereof, voluntary or involuntary, into cash or other liquid property, all cash
proceeds, accounts, accounts receivable, notes, drafts, acceptances, checks, deposit accounts, rights to payment of any and every kind, and other forms of obligations and receivables, instruments and other property which at any time constitute all
or part of or are included in the proceeds of any of the foregoing (collectively, the “Trust Estate” or the “Collateral”). 
  
 The foregoing Grant is made in trust to secure the payment of principal of and interest on, and any other amounts owing in respect of, the Notes, equally
and ratably without prejudice, priority or distinction, and to secure compliance with the provisions of this Indenture, all as provided in this Indenture. 
  
 The Indenture Trustee, as trustee on behalf of the Holders of the Notes, acknowledges such Grant, accepts the trust under this Indenture in accordance
with the provisions hereof and each of the Indenture Trustee and the Securities Administrator agree to perform their respective duties as Indenture Trustee and Securities Administrator as required herein. 

 ARTICLE I 
  
 Definitions 
  
 Section I.01 Definitions. For all purposes of this Indenture, except as otherwise expressly provided herein or unless the context otherwise
requires, capitalized terms not otherwise defined herein shall have the meanings assigned to such terms in the Definitions attached hereto as Appendix A which is incorporated by reference herein. All other capitalized terms used herein shall have
the meanings specified herein. 
  
 Section I.02 Incorporation
by Reference of Trust Indenture Act. Whenever this Indenture refers to a provision of the Trust Indenture Act (the “TIA”), the provision is incorporated by reference in and made a part of this Indenture. The following TIA terms used in
this Indenture have the following meanings: 
  
 “Commission” means the Securities and Exchange Commission. 
  
 “indenture securities” means the Notes. 
  
 “indenture security holder” means a Noteholder. 
  
 “indenture to be qualified” means this Indenture. 
  
 “indenture trustee” or “institutional
trustee” means the Indenture Trustee. 
  
 “obligor” on the indenture securities means the Issuer and any other obligor on the indenture securities. 
  
 All other TIA terms used in this Indenture that are defined by the TIA, defined by TIA reference to another statute or defined by Commission rules have
the meanings assigned to them by such definitions. 
  
 Section
I.03 Rules of Construction. Unless the context otherwise requires: 
  
 (i) a term has the meaning assigned to it; 
  
 (ii) an accounting term not otherwise defined has the meaning assigned to it in accordance with generally accepted accounting principles as in effect from time to time; 
  
 (iii) “or” is not exclusive; 
  

 2 

 (iv) “including” means including without limitation; 
  
 (v) words in the singular include the plural and words in
the plural include the singular; and 
  
 (vi) any
agreement, instrument or statute defined or referred to herein or in any instrument or certificate delivered in connection herewith means such agreement, instrument or statute as from time to time amended, modified or supplemented and includes (in
the case of agreements or instruments) references to all attachments thereto and instruments incorporated therein; references to a Person are also to its permitted successors and assigns. 
  

 3 

 ARTICLE II 
  
 Original Issuance of Notes 
  
 Section II.01 Form. The Class A Notes, Class M Notes and Class B Notes, together with the Indenture Trustee’s certificate of authentication,
shall be in substantially the form set forth in Exhibits A-1, A-2 and A-3 to this Indenture, respectively, with such appropriate insertions, omissions, substitutions and other variations as are required or permitted by this Indenture. 
  
 The Notes shall be typewritten, printed, lithographed or engraved or produced
by any combination of these methods (with or without steel engraved borders). 
  
 The terms of the Notes set forth in Exhibits A-1, A-2 and A-3 to this Indenture are part of the terms of this Indenture. 
  
 Section II.02 Execution, Authentication and Delivery. The Notes shall be executed on behalf of the Issuer by any of its Authorized Officers. The
signature of any such Authorized Officer on the Notes may be manual or facsimile. 
  
 Notes bearing the manual or facsimile signature of individuals who were at any time Authorized Officers of the Issuer shall bind the Issuer, notwithstanding that such individuals or any of them have ceased to hold
such offices prior to the authentication and delivery of such Notes or did not hold such offices at the date of such Notes. 
  
 The Indenture Trustee shall upon Issuer Request authenticate and deliver the Class I-A, Class II-A, Class I-M-1, Class II-M-1, Class I-M-2, Class II-M-2,
Class I-B and Class II-B Notes for original issue in an aggregate initial principal amount of $989,196,000. The Class I-A Notes shall be issued in an aggregate initial principal amount of $200,000,000, the Class II-A Notes shall be issued in an
aggregate initial principal amount of $680,790,000, the Class I-M-1 Notes shall be issued in an aggregate initial principal amount of $9,551,000, the Class II-M-1 Notes shall be issued in an aggregate initial principal amount of $32,637,000, the
Class I-M-2 Notes shall be issued in an aggregate initial principal amount of $9,439,000, the Class II-M-2 Notes shall be issued in an aggregate initial principal amount of $32,637,000, the Class I-B Notes shall be issued in an aggregate initial
principal amount of $4,944,000 and the Class II-B Notes shall be issued in an aggregate initial principal amount of $19,198,000. 
  
 Each of the Notes shall be dated the date of its authentication. The Notes shall be issuable as registered Notes and the Notes shall be issuable in the
minimum initial Note Principal Balances of $25,000 and in integral multiples of $1,000 in excess thereof. 
  
 No Note shall be entitled to any benefit under this Indenture or be valid or obligatory for any purpose, unless there appears on such Note a certificate
of authentication substantially in the form provided for herein executed by the Indenture Trustee by the manual signature of one of its authorized signatories, and such certificate upon any Note shall be conclusive evidence, and the only evidence,
that such Note has been duly authenticated and delivered hereunder. 
  

 4 

 ARTICLE III 
  
 Covenants 
  
 Section III.01 Maintenance of Payment Account. The Indenture Trustee shall maintain the Payment Account established pursuant to Section 4.04 of the
Sale and Servicing Agreement in accordance with the requirements of such Section. The Indenture Trustee shall make all payments of principal of and interest on the Notes, subject to Section 3.03 as provided in Section 3.05 herein from monies on
deposit in the Payment Account. 
  
 Section III.02 Maintenance
of Office or Agency. The Issuer will maintain an office or agency where, subject to satisfaction of conditions set forth herein, Notes may be surrendered for registration of transfer or exchange, and where notices and demands to or upon the
Issuer in respect of the Notes and this Indenture may be served. The Issuer hereby initially appoints the Indenture Trustee to serve as its agent for the foregoing purposes. If at any time the Issuer shall fail to maintain any such office or agency
or shall fail to furnish the Indenture Trustee with the address thereof, such surrenders may be made at the Corporate Trust Office and notices and demands may be made or delivered to the Corporate Trust Office, and the Issuer hereby appoints the
Indenture Trustee as its agent to receive all such surrenders, notices and demands. 
  
 Section III.03 Money for Payments To Be Held in Trust; Paying Agent. (a) As provided in Section 3.01, all payments of amounts due and payable with respect to any Notes that are to be made from amounts withdrawn
from the Payment Account pursuant to Section 3.05 shall be made on behalf of the Issuer by the Indenture Trustee or by the Paying Agent, based on information provided by the Securities Administrator to the Indenture Trustee or Paying Agent, as
applicable, and no amounts so withdrawn from the Payment Account for payments of Notes shall be paid over to the Issuer except as provided in this Section 3.03. The Securities Administrator shall calculate the amount to be distributed to each Class
and, based on such amounts, the Securities Administrator shall determine the amount to be distributed to each Noteholder. All of the Securities Administrator’s calculations of payments shall be based solely on information provided to the
Securities Administrator by the Master Servicer pursuant to Section 3.01 of the Sale and Servicing Agreement. Neither the Securities Administrator nor the Indenture Trustee shall be required to confirm, verify or recompute any such information but
shall be entitled to rely conclusively on such information. The Issuer hereby appoints the Indenture Trustee as its Paying Agent. 
  
 The Issuer will cause each Paying Agent other than the Indenture Trustee to execute and deliver to the Indenture Trustee an instrument in which such
Paying Agent shall agree with the Indenture Trustee (and if the Indenture Trustee acts as Paying Agent it hereby so agrees), subject to the provisions of this Section 3.03, that such Paying Agent will: 
  
 (i) hold all sums held by it for the payment of amounts due
with respect to the Notes in trust for the benefit of the Persons entitled thereto until such sums shall be paid to such Persons or otherwise disposed of as herein provided and pay such sums to such Persons as herein provided; 
  

 5 

 (ii) give the Indenture Trustee notice of any default by the Issuer of which it has
actual knowledge in the making of any payment required to be made with respect to the Notes; 
  
 (iii) at any time during the continuance of any such default, upon the written request of the Indenture Trustee, forthwith pay to the
Indenture Trustee all sums so held in trust by such Paying Agent; 
  
 (iv) immediately resign as Paying Agent and forthwith pay to the Indenture Trustee all sums held by it in trust for the payment of Notes if at any time it ceases to meet the standards required to be met by a Paying
Agent at the time of its appointment; 
  
 (v)
comply with all requirements of the Code with respect to the withholding from any payments made by it on any Notes of any applicable withholding taxes imposed thereon and with respect to any applicable reporting requirements in connection therewith;
and 
  
 (vi) not commence a bankruptcy proceeding
against the Issuer in connection with this Indenture. 
  
 The
Issuer may at any time, for the purpose of obtaining the satisfaction and discharge of this Indenture or for any other purpose, by Issuer Request direct any Paying Agent to pay to the Indenture Trustee all sums held in trust by such Paying Agent,
such sums to be held by the Indenture Trustee upon the same trusts as those upon which the sums were held by such Paying Agent; and upon such payment by any Paying Agent to the Indenture Trustee, such Paying Agent shall be released from all further
liability with respect to such money. 
  
 Subject to applicable
laws with respect to escheat of funds, any money held by the Indenture Trustee or any Paying Agent in trust for the payment of any amount due with respect to any Note and remaining unclaimed for one year after such amount has become due and payable
shall be discharged from such trust and be paid to the Issuer; and the Holder of such Note shall thereafter, as an unsecured general creditor, look only to the Issuer for payment thereof (but only to the extent of the amounts so paid to the Issuer),
and all liability of the Indenture Trustee or such Paying Agent with respect to such trust money shall thereupon cease; provided, however, that the Indenture Trustee or such Paying Agent, before being required to make any such repayment,
shall at the expense and direction of the Issuer cause to be published once, in an Authorized Newspaper published in the English language, notice that such money remains unclaimed and that, after a date specified therein 
  

 6 

 which shall not be less than 30 days from the date of such publication, any unclaimed balance of such money then
remaining will be repaid to the Issuer. The Indenture Trustee may also adopt and employ, at the expense and direction of the Issuer, any other reasonable means of notification of such repayment (including, but not limited to, mailing notice of such
repayment to Holders whose Notes have been called but have not been surrendered for redemption or whose right to or interest in monies due and payable but not claimed is determinable from the records of the Indenture Trustee or of any Paying Agent,
at the last address of record for each such Holder). 
  
 Section
III.04 Existence. The Issuer will keep in full effect its existence, rights and franchises as a statutory trust under the laws of the State of Delaware (unless it becomes, or any successor Issuer hereunder is or becomes, organized under the
laws of any other state or of the United States of America, in which case the Issuer will keep in full effect its existence, rights and franchises under the laws of such other jurisdiction) and will obtain and preserve its qualification to do
business in each jurisdiction in which such qualification is or shall be necessary to protect the validity and enforceability of this Indenture, the Notes, the Mortgage Loans and each other instrument or agreement included in the Trust Estate.

  
 Section III.05 Payment of Principal and Interest. (a)
On each Payment Date from amounts on deposit in the Payment Account, in accordance with payment instructions provided to it by the Securities Administrator no later than two Business Days prior to such Payment Date the Indenture Trustee shall pay to
the Persons specified below the Available Funds for such Payment Date. 
  
 (b) On each Payment Date, the Group I Available Funds shall be distributed in the following order of priority, in each case to the extent of the Group I Available Funds remaining for such Payment Date: 
  
 (i) to the Holders of the Class I-A Notes, the related
Accrued Note Interest for such Class for such Payment Date; 
  
 (ii) to the Holders of the Class I-M-1 Notes, the related Accrued Note Interest for such Class for such Payment Date; 
  
 (iii) to the Holders of the Class I-M-2 Notes, the related Accrued Note Interest for such Class for such Payment Date; and 
  
 (iv) to the Holders of the Class I-B Notes, the related
Accrued Note Interest for such Class for such Payment Date. 
  

 7 

 (c) On each Payment Date, the Holders of the Class I-A, Class I-M-1, Class I-M-2 and Class I-B Notes
shall be entitled to receive payments in respect of principal equal the related Principal Distribution Amount for that Payment Date, allocated on a pro rata basis, based on the Note Principal Balances thereof, in reduction of the Note Principal
Balances thereof, until the Note Principal Balances thereof have been reduced to zero. 
  
 (d) On each Payment Date, any Net Monthly Excess Cashflow in respect of the Group I Loans shall be paid as follows, in each case to the extent of such remaining Net Monthly Excess Cashflow: 
  
 (i) to the Holders of the Group I Notes, pro rata, in an
amount equal to any related Undercollateralization Amount, payable to such Holders as part of the related Principal Distribution Amount as described under Section 3.05(c) above; 
  
 (ii) to the Holders of the Group II Notes, pro rata, in an amount equal to any Crossable
Undercollateralization Amount for Loan Group II, payable to such Holders as part of the related Principal Distribution Amount as described under Section 3.05(f) below; 
  
 (iii) to the Holders of the Group I Notes, pro rata, in an amount equal to any related Overcollateralization
Increase Amount, payable to such Holders as part of the related Principal Distribution Amount as described under Section 3.05(c) above; 
  
 (iv) to the Holders of the Group II Notes, pro rata, in an amount equal to any Crossable Losses for Loan group II, payable to such Holders
as part of the related Principal Distribution Amount as described under Section 3.05(f) below; 
  
 (v) sequentially, in the following order, to the Holders of the Class I-M-1, Class I-M-2 and Class I-B Notes in an amount equal to the
Allocated Realized Loss Amount for such Notes, to the extent not previously reimbursed; 
  
 (vi) sequentially, in the following order, to the Holders of the Class II-M-1, Class II-M-2 and Class II-B Notes in an amount equal to any
Allocated Realized Loss Amount for such Notes remaining after giving effect to payments pursuant to Section 3.05(g)(v) below; 
  
 (vii) sequentially, in the following order, to the Holders of the Class I-A, Class I-M-1, Class I-M-2 and Class I-B Notes any related
Basis Risk Shortfall Carry-Forward Amount for such Notes on such Payment Date; and 
  

 8 

 (viii) any remaining amounts will be distributed to the Certificate Paying Agent, as
designee of the Issuer, for the benefit of the Holders of the Trust Certificates. 
  
 (e) On each Payment Date, the Group II Available Funds shall be distributed in the following order of priority, in each case to the extent of the Group II Available Funds remaining for such Payment Date: 

 
 (i) to the Holders of the Class II-A Notes, the related
Accrued Note Interest for such Class for such Payment Date; 
  
 (ii) to the Holders of the Class II-M-1 Notes, the related Accrued Note Interest for such Class for such Payment Date; 
  
 (iii) to the Holders of the Class II-M-2 Notes, the related Accrued Note Interest for such Class for such Payment Date; and 
  
 (iv) to the Holders of the Class II-B Notes, the related
Accrued Note Interest for such Class for such Payment Date. 
  
 (f) On each Payment Date, the Holders of the Class II-A, Class II-M-1, Class II-M-2 and Class II-B Notes shall be entitled to receive payments in respect of principal equal the related Principal Distribution Amount for that Payment Date,
allocated on a pro rata basis, based on the Note Principal Balances thereof, in reduction of the Note Principal Balances thereof, until the Note Principal Balances thereof have been reduced to zero. 
  
 (g) On each Payment Date, any Net Monthly Excess Cashflow in respect of the
Group II Loans shall be paid as follows, in each case to the extent of such remaining Net Monthly Excess Cashflow: 
  
 (i) to the Holders of the Group II Notes, pro rata, in an amount equal to any related Undercollateralization Amount, payable to such
Holders as part of the related Principal Distribution Amount as described under Section 3.05(f) above; 
  

 9 

 (ii) to the Holders of the Group I Notes, pro rata, in an amount equal to any Crossable
Undercollateralization Amount for Loan Group I, payable to such Holders as part of the related Principal Distribution Amount as described under Section 3.05(c) above; 
  
 (iii) to the Holders of the Group II Notes, pro rata, in an amount equal to any related
Overcollateralization Increase Amount, payable to such Holders as part of the related Principal Distribution Amount as described under Section 3.05(f) above; 
  

(iv) to the Holders of the Group I Notes, pro rata, in an amount equal to any Crossable Losses for Loan group I, payable to such
Holders as part of the related Principal Distribution Amount as described under Section 3.05(c) above; 
  
 (v) sequentially, in the following order, to the Holders of the Class II-M-1, Class II-M-2 and Class II-B Notes in an amount equal to the
Allocated Realized Loss Amount for such Notes, to the extent not previously reimbursed; 
  
 (vi) sequentially, in the following order, to the Holders of the Class I-M-1, Class I-M-2 and Class I-B Notes in an amount equal to any
Allocated Realized Loss Amount for such Notes remaining after giving effect to payments pursuant to section 3.05(d)(v) above; 
  
 (vii) sequentially, in the following order, to the Holders of the Class II-A, Class II-M-1, Class II-M-2 and Class II-B Notes any related
Basis Risk Shortfall Carry-Forward Amount for such Notes on such Payment Date; and 
  
 (viii) any remaining amounts will be distributed to the Certificate Paying Agent, as designee of the Issuer, for the benefit of the
Holders of the Trust Certificates. 
  
 (h) Each distribution with
respect to a Book-Entry Note shall be paid to the Depository, as Holder thereof, and the Depository shall be responsible for crediting the amount of such distribution to the accounts of its Depository Participants in accordance with its normal
procedures. Each Depository Participant shall be responsible for disbursing such distribution to the Note Owners that it represents and to each indirect participating brokerage firm (a “brokerage firm” or “indirect participating
firm”) for which it acts as agent. Each brokerage firm shall be responsible for disbursing funds to the Note Owners that it represents. None of the Indenture Trustee, the Note Registrar, the Paying Agent, the Depositor, the Securities
Administrator or the Master Servicer shall have any responsibility therefor except as otherwise provided by this Indenture. 
  

 10 

 (i) On each Payment Date, the Certificate Paying Agent shall deposit in the Certificate Distribution
Account all amounts it received pursuant to Sections 3.05(d)(viii) and 3.05(g)(viii) for the purpose of distributing such funds to the Certificateholders. The Certificate Paying Agent shall make distributions to the Certificateholders under the
Trust Agreement as directed by the Securities Administrator hereunder. 
  
 (j) Any installment of interest or principal, if any, payable on any Note that is punctually paid or duly provided for by the Issuer on the applicable Payment Date shall, if such Holder shall have so requested at least five Business Days
prior to the related Record Date, be paid to each Holder of record on the preceding Record Date, by wire transfer to an account specified in writing by such Holder as of the preceding Record Date or in all other cases or if no such instructions have
been delivered to the Indenture Trustee, by check to such Noteholder mailed to such Holder’s address as it appears in the Note Register in the amount required to be distributed to such Holder on such Payment Date pursuant to such Holder’s
Notes; provided, however, that the Indenture Trustee shall not pay to such Holders any amount required to be withheld from a payment to such Holder by the Code. 
  
 (k) The principal of each Note shall be due and payable in full on the Final Scheduled Payment Date for such Note as
provided in the forms of Note set forth in Exhibits A-1, A-2 and A-3 to this Indenture. All principal payments on the Notes shall be made to the Noteholders entitled thereto in accordance with the Percentage Interests represented by such Notes. Upon
notice to the Indenture Trustee by the Issuer, the Indenture Trustee shall notify the Person in whose name a Note is registered at the close of business on the Record Date preceding the Final Scheduled Payment Date or other final Payment Date
(including any final Payment Date resulting from any redemption pursuant to Section 8.07 hereof). Such notice shall to the extent practicable be mailed no later than five Business Days prior to such Final Scheduled Payment Date or other final
Payment Date and shall specify that payment of the principal amount and any interest due with respect to such Note at the Final Scheduled Payment Date or other final Payment Date will be payable only upon presentation and surrender of such Note and
shall specify the place where such Note may be presented and surrendered for such final payment. No interest shall accrue on the Notes on or after the Final Scheduled Payment Date or any such other final Payment Date. 
  
 Section III.06 Protection of Trust Estate. (a) The Issuer will from
time to time prepare, execute and deliver all such supplements and amendments hereto and all such financing statements, continuation statements, instruments of further assurance and other instruments, and will take such other action necessary or
advisable to: 
  
 (i) maintain or preserve the
lien and security interest (and the priority thereof) of this Indenture or carry out more effectively the purposes hereof; 
  
 (ii) perfect, publish notice of or protect the validity of any Grant made or to be made by this Indenture; 
  

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 (iii) cause the Issuer or the Indenture Trustee to enforce any of the rights to the
Mortgage Loans; or 
  
 (iv) preserve and defend
title to the Trust Estate and the rights of the Indenture Trustee and the Noteholders in the Trust Estate against the claims of all persons and parties. 
  
 (b) Except as otherwise provided in this Indenture, the Indenture Trustee shall not remove or permit the Custodian to remove any portion of the Trust
Estate that consists of money or is evidenced by an instrument, certificate or other writing from the jurisdiction in which it was held at the date of the most recent Opinion of Counsel delivered pursuant to Section 3.07 hereof (or from the
jurisdiction in which it was held as described in the Opinion of Counsel delivered on the Closing Date pursuant to Section 3.07(a) hereof, or if no Opinion of Counsel has yet been delivered pursuant to Section 3.07(b) hereof, unless the Indenture
Trustee shall have first received an Opinion of Counsel to the effect that the lien and security interest created by this Indenture with respect to such property will continue to be maintained after giving effect to such action or actions).

  
 The Issuer hereby designates the Indenture Trustee its agent
and attorney-in-fact to sign any financing statement, continuation statement or other instrument required to be signed pursuant to this Section 3.06 upon the Issuer’s preparation thereof and delivery to the Indenture Trustee with appropriate
instructions. 
  
 Section III.07 Opinions as to Trust
Estate. (a) On the Closing Date, the Issuer shall furnish to the Indenture Trustee and the Owner Trustee an Opinion of Counsel either stating that, in the opinion of such counsel, such action has been taken with respect to the recording and
filing of this Indenture, any indentures supplemental hereto, and any other requisite documents, and with respect to the execution and filing of any financing statements and continuation statements, as are necessary to perfect and make effective the
lien and first priority security interest in the Collateral and reciting the details of such action, or stating that, in the opinion of such counsel, no such action is necessary to make such lien and first priority security interest effective.

  
 (b) On or before April 15 in each calendar year, beginning in
2005, the Issuer shall furnish to the Indenture Trustee an Opinion of Counsel at the expense of the Issuer either stating that, in the opinion of such counsel, such action has been taken with respect to the recording, filing, re-recording and
refiling of this Indenture, any indentures supplemental hereto and any other requisite documents and with respect to the execution and filing of any financing statements and continuation statements as is necessary to maintain the lien and first
priority security interest in the Collateral and reciting the details of such action or stating that in the opinion of such counsel no such action is necessary to maintain such lien and security interest. Such Opinion of Counsel shall also describe
the recording, filing, re-recording and refiling of this Indenture, any indentures supplemental hereto and any other 
  

 12 

 requisite documents and the execution and filing of any financing statements and continuation statements that will, in
the opinion of such counsel, be required to maintain the lien and security interest in the Collateral until December 31 in the following calendar year. 
  
 Section III.08 Performance of Obligations. (a) The Issuer will punctually perform and observe all of its obligations and agreements contained in
this Indenture, the Basic Documents and in the instruments and agreements included in the Trust Estate. 
  
 (b) The Issuer may contract with other Persons to assist it in performing its duties under this Indenture, and any performance of such duties by a Person
identified to the Indenture Trustee in an Officer’s Certificate of the Issuer shall be deemed to be action taken by the Issuer. 
  
 (c) The Issuer will not take any action or permit any action to be taken by others which would release any Person from any of such Person’s covenants
or obligations under any of the documents relating to the Mortgage Loans or under any instrument included in the Trust Estate, or which would result in the amendment, hypothecation, subordination, termination or discharge of, or impair the validity
or effectiveness of, any of the documents relating to the Mortgage Loans or any such instrument, except such actions as the Master Servicer is expressly permitted to take in the Sale and Servicing Agreement. The Indenture Trustee, as pledgee of the
Mortgage Loans, may exercise the rights of the Issuer to direct the actions of the Master Servicer pursuant to the Sale and Servicing Agreement. 
  
 (d) The Issuer may retain an administrator and may enter into contracts with other Persons for the performance of the Issuer’s obligations hereunder,
and performance of such obligations by such Persons shall be deemed to be performance of such obligations by the Issuer. 
  
 Section III.09 Negative Covenants. So long as any Notes are Outstanding, the Issuer shall not: 
  
 (i) except as expressly permitted by this Indenture, sell,
transfer, exchange or otherwise dispose of the Trust Estate, unless directed to do so by the Indenture Trustee; 
  
 (ii) claim any credit on, or make any deduction from the principal or interest payable in respect of, the Notes (other than amounts
properly withheld from such payments under the Code) or assert any claim against any present or former Noteholder by reason of the payment of the taxes levied or assessed upon any part of the Trust Estate; 
  

 13 

 (iii) (A) permit the validity or effectiveness of this Indenture to be impaired, or
permit the lien of this Indenture to be amended, hypothecated, subordinated, terminated or discharged, or permit any Person to be released from any covenants or obligations with respect to the Notes under this Indenture except as may be expressly
permitted hereby, (B) permit any lien, charge, excise, claim, security interest, mortgage or other encumbrance (other than the lien of this Indenture) to be created on or extend to or otherwise arise upon or burden the Trust Estate or any part
thereof or any interest therein or the proceeds thereof or (C) permit the lien of this Indenture not to constitute a valid first priority security interest in the Trust Estate; or 
  
 (iv) waive or impair, or fail to assert rights under, the Mortgage Loans, or impair or cause to be impaired
the Issuer’s interest in the Mortgage Loans, the Mortgage Loan Purchase Agreement or in any Basic Document, if any such action would materially and adversely affect the interests of the Noteholders. 
  
 Section III.10 Annual Statement as to Compliance. The Issuer will
deliver to the Indenture Trustee, by March 1 of each year commencing with the calendar year 2005, an Officer’s Certificate stating, as to the Authorized Officer signing such Officer’s Certificate, that: 
  
 (i) a review of the activities of the Issuer during the
previous calendar year and of its performance under this Indenture has been made under such Authorized Officer’s supervision; and 
  
 (ii) to the best of such Authorized Officer’s knowledge, based on such review, the Issuer has complied with all conditions and
covenants under this Indenture throughout such year, or, if there has been a default in its compliance with any such condition or covenant, specifying each such default known to such Authorized Officer and the nature and status thereof. 

 
 Section III.11 [Reserved]. 
  
 Section III.12 Representations and Warranties Concerning the Mortgage
Loans. The Indenture Trustee, as pledgee of the Mortgage Loans, has the benefit of the representations and warranties made by the Seller in the Mortgage Loan Purchase Agreement concerning the Seller and the Mortgage Loans to the same extent as
though such representations and warranties were made directly to the Indenture Trustee. If a Responsible Officer of the Indenture Trustee has actual knowledge of any breach of any representation or warranty made by the Seller in the Mortgage Loan
Purchase Agreement, the Indenture Trustee shall promptly notify the Seller of such finding and the Seller’s obligation to cure such defect or repurchase or substitute for the related Mortgage Loan. 
  

 14 

 Section III.13 Amendments to Sale and Servicing Agreement. The Issuer covenants with the Indenture
Trustee that it will not enter into any amendment or supplement to the Sale and Servicing Agreement without the prior written consent of the Indenture Trustee. 
  

Section III.14 Master Servicer as Agent and Bailee of the Indenture Trustee. (a) Solely for purposes of perfection under Section 9-305 of the
Uniform Commercial Code or other similar applicable law, rule or regulation of the state in which such property is held by the Master Servicer, the Issuer and the Indenture Trustee hereby acknowledge that the Master Servicer is acting as bailee of
the Indenture Trustee in holding amounts on deposit in the Master Servicer Collection Account, as well as its bailee in holding any Related Documents released to the Master Servicer, and any other items constituting a part of the Trust Estate which
from time to time come into the possession of the Master Servicer. It is intended that, by the Master Servicer’s acceptance of such bailee arrangement, the Indenture Trustee, as a secured party of the Mortgage Loans, will be deemed to have
possession of such Related Documents, such monies and such other items for purposes of Section 9-305 of the Uniform Commercial Code of the state in which such property is held by the Master Servicer. The Indenture Trustee shall not be liable with
respect to such documents, monies or items while in possession of the Master Servicer and the Master Servicer shall not otherwise be deemed to be the agent of the Indenture Trustee. 
  
 (b) Solely for purposes of perfection under Section 9-305 of the Uniform Commercial Code or other similar applicable law,
rule or regulation of the state in which such property is held by the Servicer, the Issuer and the Indenture Trustee hereby acknowledge that the Servicer is acting as bailee of the Indenture Trustee in holding amounts on deposit in the Protected
Account, as well as its bailee in holding any Related Documents released to the Servicer, and any other items constituting a part of the Trust Estate which from time to time come into the possession of the Servicer. It is intended that, by the
Servicer’s acceptance of such bailee arrangement, the Indenture Trustee, as a secured party of the Mortgage Loans, will be deemed to have possession of such Related Documents, such monies and such other items for purposes of Section 9-305 of
the Uniform Commercial Code of the state in which such property is held by the Servicer. The Indenture Trustee shall not be liable with respect to such documents, monies or items while in possession of the Servicer and the Servicer shall not
otherwise be deemed to be the agent of the Indenture Trustee. 
  
 Section III.15 Investment Company Act. The Issuer shall not become an “investment company” or be under the “control” of an “investment company” as such terms are defined in the Investment Company Act of
1940, as amended (or any successor or amendatory statute), and the rules and regulations thereunder (taking into account not only the general definition of the term “investment company” but also any available exceptions to such general
definition); provided, however, that the Issuer shall be in compliance with this Section 3.15 if it shall have obtained an order exempting it from regulation as an “investment company” so long as it is in compliance with the
conditions imposed in such order. 
  

 15 

 Section III.16 Issuer May Consolidate, etc. (a) The Issuer shall not consolidate or merge with or
into any other Person, unless: 
  
 (i) the Person
(if other than the Issuer) formed by or surviving such consolidation or merger shall be a Person organized and existing under the laws of the United States of America or any state or the District of Columbia and shall expressly assume, by an
indenture supplemental hereto, executed and delivered to the Indenture Trustee, in form reasonably satisfactory to the Indenture Trustee, the due and punctual payment of the principal of and interest on all Notes, and all other amounts payable to
the Indenture Trustee and the Securities Administrator, the payment to the Certificate Paying Agent of all amounts due to the Certificateholders, and the performance or observance of every agreement and covenant of this Indenture on the part of the
Issuer to be performed or observed, all as provided herein; 
  
 (ii) immediately after giving effect to such transaction, no Event of Default shall have occurred and be continuing; 
  
 (iii) each of the Rating Agencies shall have notified the Issuer that such transaction shall not cause the rating of the Notes to be
reduced, suspended or withdrawn or to be considered by such Rating Agency to be below investment grade; 
  
 (iv) the Issuer shall have received an Opinion of Counsel (and shall have delivered a copy thereof to the Indenture Trustee) to the effect
that such transaction will not (A) result in a “significant modification” of the Notes under Treasury Regulation section 1.1001-3, or adversely affect the status of the Notes as indebtedness for federal income tax purposes and (B) cause
the Trust to be subject to an entity level tax for federal income tax purposes; 
  
 (v) any action that is necessary to maintain the lien and security interest created by this Indenture shall have been taken; and

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

 16 

 (b) The Issuer shall not convey or transfer any of its properties or assets, including those included in
the Trust Estate, to any Person, unless: 
  
 (i)
the Person that acquires by conveyance or transfer the properties and assets of the Issuer, the conveyance or transfer of which is hereby restricted, shall (A) be a United States citizen or a Person organized and existing under the laws of the
United States of America or any state thereof, (B) expressly assume, by an indenture supplemental hereto, executed and delivered to the Indenture Trustee, in form satisfactory to the Indenture Trustee, the due and punctual payment of the principal
of and interest on all Notes and the performance or observance of every agreement and covenant of this Indenture on the part of the Issuer to be performed or observed, all as provided herein, (C) expressly agree by means of such supplemental
indenture that all right, title and interest so conveyed or transferred shall be subject and subordinate to the rights of the Holders of the Notes, (D) unless otherwise provided in such supplemental indenture, expressly agree to indemnify, defend
and hold harmless the Issuer and the Indenture Trustee against and from any loss, liability or expense arising under or related to this Indenture and the Notes and (E) expressly agree by means of such supplemental indenture that such Person (or if a
group of Persons, then one specified Person) shall make all filings with the Commission (and any other appropriate Person) required by the Exchange Act in connection with the Notes; 
  
 (ii) immediately after giving effect to such transaction, no Default or Event of Default shall have occurred
and be continuing; 
  
 (iii) each of the Rating
Agencies shall have notified the Issuer that such transaction shall not cause the ratings of the Notes to be reduced, suspended or withdrawn; 
  
 (iv) the Issuer shall have received an Opinion of Counsel (and shall have delivered a copy thereof to the Indenture Trustee) to the effect
that such transaction will not (A) result in a “significant modification” of the Notes under Treasury Regulation section 1.1001-3, or adversely affect the status of the Notes as indebtedness for federal income tax purposes, and (B) cause
the Trust to be subject to an entity level tax for federal income tax purposes; 
  
 (v) any action that is necessary to maintain the lien and security interest created by this Indenture shall have been taken; and

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

 17 

 Section III.17 Successor or Transferee. (a) Upon any consolidation or merger of the Issuer in
accordance with Section 3.16(a), the Person formed by or surviving such consolidation or merger (if other than the Issuer) shall succeed to, and be substituted for, and may exercise every right and power of, the Issuer under this Indenture with the
same effect as if such Person had been named as the Issuer herein. 
  
 (b) Upon a conveyance or transfer of all the assets and properties of the Issuer pursuant to Section 3.16(b), the Issuer will be released from every covenant and agreement of this Indenture to be observed or performed on the part of the
Issuer with respect to the Notes immediately upon the delivery of written notice to the Indenture Trustee of such conveyance or transfer. 
  
 Section III.18 No Other Business. The Issuer shall not engage in any business other than financing, purchasing, owning and selling and managing the
Mortgage Loans and the issuance of the Notes and Certificates in the manner contemplated by this Indenture and the Basic Documents and all activities incidental thereto. 
  
 Section III.19 No Borrowing. The Issuer shall not issue, incur, assume, guarantee or otherwise become liable,
directly or indirectly, for any indebtedness except for the Notes under this Indenture. 
  
 Section III.20 Guarantees, Loans, Advances and Other Liabilities. Except as contemplated by this Indenture or the Basic Documents, the Issuer shall not make any loan or advance or credit to, or guarantee
(directly or indirectly or by an instrument having the effect of assuring another’s payment or performance on any obligation or capability of so doing or otherwise), endorse or otherwise become contingently liable, directly or indirectly, in
connection with the obligations, stocks or dividends of, or own, purchase, repurchase or acquire (or agree contingently to do so) any stock, obligations, assets or securities of, or any other interest in, or make any capital contribution to, any
other Person. 
  
 Section III.21 Capital Expenditures. The
Issuer shall not make any expenditure (by long-term or operating lease or otherwise) for capital assets (either realty or personalty). 
  
 Section III.22 Determination of Note Interest Rate. On each Interest Determination Date the Securities Administrator shall determine One-Month
LIBOR and the related Note Interest Rate for each Class of Notes for the following Accrual Period. The establishment of One-Month LIBOR on each Interest Determination Date by the Securities Administrator and the Securities Administrator’s
calculation of the rate of interest applicable to each Class of Notes for the related Accrual Period shall (in the absence of manifest error) be final and binding. 
  

 18 

 Section III.23 Restricted Payments. The Issuer shall not, directly or indirectly, (i) pay any
dividend or make any distribution (by reduction of capital or otherwise), whether in cash, property, securities or a combination thereof, to the Owner Trustee or any owner of a beneficial interest in the Issuer or otherwise with respect to any
ownership or equity interest or security in or of the Issuer, (ii) redeem, purchase, retire or otherwise acquire for value any such ownership or equity interest or security or (iii) set aside or otherwise segregate any amounts for any such purpose;
provided, however, that the Issuer may make, or cause to be made, (x) distributions and payments to the Owner Trustee, the Indenture Trustee, Noteholders and the Certificateholders as contemplated by, and to the extent funds are available for
such purpose under this Indenture, the Sale and Servicing Agreement and the Trust Agreement and (y) payments to the Master Servicer, the Servicer and the Special Servicer pursuant to the terms of the Sale and Servicing Agreement. The Issuer will
not, directly or indirectly, make payments to or distributions from the Master Servicer Collection Account or the Payment Account except in accordance with this Indenture and the Basic Documents. 
  
 Section III.24 Notice of Events of Default. The Issuer shall give the
Indenture Trustee, the Securities Administrator and the Rating Agencies prompt written notice of each Event of Default hereunder and under the Trust Agreement. 
  

Section III.25 Further Instruments and Acts. Upon request of the Indenture Trustee, the Issuer will execute and deliver such further instruments
and do such further acts as may be reasonably necessary or proper to carry out more effectively the purpose of this Indenture. 
  
 Section III.26 Certain Representations Regarding the Trust Estate. 
  
 (a) With respect to that portion of the Collateral described in clauses (a) through (h) of the definition of Trust Estate,
the Issuer represents to the Indenture Trustee that: 
  
 (i) This Indenture creates a valid and continuing security interest (as defined in the applicable UCC) in the Collateral in favor of the Indenture Trustee, which security interest is prior to all other liens, and is enforceable as such as
against creditors of and purchasers from the Issuer. 
  
 (ii) In each case, within the meaning of the applicable UCC: (A) the Collateral described in clauses (a) through (d) constitutes “deposit accounts” or “instruments,” as applicable; (B) the Collateral described in clause
(e) constitutes “real property;”(C) the Collateral described in clause (f) constitutes “accounts;” and (D) the Collateral described in clause (h) constitutes “general intangibles.” 
  

 19 

 (iii) The Issuer owns and has good and marketable title to the Collateral, free and clear
of any lien, claim or encumbrance of any Person. 
  
 (iv) The Issuer has taken all steps necessary to cause the Indenture Trustee to become the account holder of the Collateral. 
  
 (v) Other than the security interest granted to the Indenture Trustee pursuant to this Indenture, the Issuer has not pledged, assigned,
sold, granted a security interest in, or otherwise conveyed any of the Collateral. 
  
 (vi) The Collateral is not in the name of any Person other than the Issuer or the Indenture Trustee. The Issuer has not consented to the
bank maintaining the Collateral to comply with instructions of any Person other than the Indenture Trustee. 
  
 (b) With respect to any Collateral in which a security interest may be perfected by filing, the Issuer has not authorized the filing of, and is not aware
of any financing statements against, the Issuer, that include a description of collateral covering such Collateral, other than any financing statement relating to the security interest granted to the Indenture Trustee hereunder or that has been
terminated. The Issuer is not aware of any judgment or tax lien filings against the Issuer. 
  
 (c) The Issuer has caused or will have caused, within ten days, the filing of all appropriate financing statements in the proper filing office in the appropriate jurisdictions under applicable law in order to perfect
the security interest in all Collateral granted to the Indenture Trustee hereunder in which a security interest may be perfected by filing. Any financing statement that is filed in connection with this Section 3.26 shall contain a statement that a
purchase or security interest in any collateral described therein will violate the rights of the secured party named in such financing statement. 
  
 (d) The foregoing representations may not be waived and shall survive the issuance of the Notes. 
  
 Section III.27 Allocation of Realized Losses. (a) Prior to each
Payment Date, the Master Servicer shall determine, based solely on information provided to it by the Servicer, the total amount of Realized Losses that occurred during the related Prepayment Period. 
  
 (b) Any realized Losses on the Mortgage Loans will be allocated or covered on
any payment date as follows first, to the related Net Monthly Excess Cashflow, by an increase in the related Overcollateralization Increase Amount for that Payment Date as provided in Section 3.05 
  

 20 

 hereof; second, to the non-related Net Monthly Excess Cashflow, to the extent described in Section 3.05 hereof;
third, in reduction of the Overcollateralized Amount for the related and non-related Loan Group, until reduced to zero (meaning, no losses will be allocated to the Class M Notes or Class B Notes until the aggregate Note Principal Balance of
the Notes equals the aggregate Scheduled Principal Balance of the Mortgage Loans); and fourth, if such Realized Loss is on a (x) Group I Loan, to the Class I-B, Class I-M-2 and Class I-M-1 Notes, in that order, in reduction of the Note
Principal Balances thereof, until the Note Principal Balance thereof have been reduced to zero and (y) Group II Loan, to the Class II-B, Class II-M-2 and Class II-M-1 Notes, in that order, in reduction of the Note Principal Balances thereof, until
the Note Principal Balance thereof have been reduced to zero. For purposes of clause third all Realized Losses will be allocated among both Loan Groups to their respective Overcollateralization Amounts on a pro rata basis, based on the amount
of Realized Losses incurred during the related Prepayment Period which were not covered on that Payment Date through a payment of Net Monthly Excess Cashflow, until the aggregate Note Principal Balance of the Notes equals the aggregate Scheduled
Principal Balance of the Mortgage Loans (even if this results in an Undercollateralization Amount) before being allocated to the related Notes as provided in clause fourth. Realized Losses shall not be allocated to the Class A Notes. All
Realized Losses allocated to a Class of Notes will be allocated in proportion to the Percentage Interests evidenced thereby. 
  
 (b) In addition, in the event that the Master Servicer receives any Subsequent Recoveries from the Servicer, the Master Servicer shall deposit such funds
into the Master Servicer Collection Account in accordance with Section 4.02 of the Sale and Servicing Agreement. If, after taking into account such Subsequent Recoveries, the amount of a Realized Loss is reduced, the amount of such Subsequent
Recoveries will be applied to increase the Note Principal Balance of the related Class of Class M Notes or Class B Notes with the highest payment priority to which Realized Losses have been allocated and not previously reimbursed through the payment
of an Allocated Realized Loss Amount pursuant to Sections 3.05(d)(v) or (vi) or Sections 3.05(g)(v) or (vi), as applicable, but not by more than the amount of Realized Losses previously allocated to that Class of Class M Notes or Class B Notes
pursuant to this Section 3.27. The amount of any remaining Subsequent Recoveries will be applied to sequentially increase the Note Principal Balance of the related Class of Class M Notes or the Class B Notes, beginning with the Class of Notes with
the next highest payment priority, up to the amount of such Realized Losses previously allocated (but only to the extent not previously reimbursed through the payment of an Allocated Realized Loss Amount pursuant to Sections 3.05(d)(v) or (vi) or
Sections 3.05(g)(v) or (vi)) to such Class of Class M Notes or the Class B Notes pursuant to this Section 3.27. Holders of such Notes will not be entitled to any payment in respect of current interest on the amount of such increases for any Accrual
Period preceding the Payment Date on which such increase occurs. Any such increases shall be applied to the Note Principal Balance of each Class of Class M Notes of such Class and the Class B Notes in accordance with its respective Percentage
Interest. 
  

 21 

 ARTICLE IV 
  
 The Notes; Satisfaction and Discharge of Indenture 
  
 Section IV.01 The Notes. Each Class of Notes shall be registered in the name of a nominee designated by the Depository. Beneficial Owners will hold
interests in the Notes through the book-entry facilities of the Depository in minimum initial Note Principal Balances of $25,000 and integral multiples of $1,000 in excess thereof. 
  
 The Indenture Trustee may for all purposes (including the making of payments due on the Notes) deal with the Depository as
the authorized representative of the Beneficial Owners with respect to the Notes for the purposes of exercising the rights of Holders of the Notes hereunder. Except as provided in the next succeeding paragraph of this Section 4.01, the rights of
Beneficial Owners with respect to the Notes shall be limited to those established by law and agreements between such Beneficial Owners and the Depository and Depository Participants. Except as provided in Section 4.08 hereof, Beneficial Owners shall
not be entitled to definitive certificates for the Notes as to which they are the Beneficial Owners. Requests and directions from, and votes of, the Depository as Holder of the Notes shall not be deemed inconsistent if they are made with respect to
different Beneficial Owners. The Indenture Trustee may establish a reasonable record date in connection with solicitations of consents from or voting by Noteholders and give notice to the Depository of such record date. Without the consent of the
Issuer and the Indenture Trustee, no Note may be transferred by the Depository except to a successor Depository that agrees to hold such Note for the account of the Beneficial Owners. 
  
 In the event the Depository Trust Company resigns or is removed as Depository, the Depositor may appoint a successor
Depository. If no successor Depository has been appointed within 30 days of the effective date of the Depository’s resignation or removal, each Beneficial Owner shall be entitled to certificates representing the Notes it beneficially owns in
the manner prescribed in Section 4.08. 
  
 The Notes shall, on
original issue, be executed on behalf of the Issuer by the Owner Trustee, not in its individual capacity but solely as Owner Trustee, authenticated by the Indenture Trustee and delivered by the Indenture Trustee to or upon the order of the Issuer.

  
 Section IV.02 Registration of and Limitations on Transfer
and Exchange of Notes; Appointment of Note Registrar and Certificate Registrar. The Issuer shall cause to be kept at the office of the Note Registrar (which shall be the office specified in Section 3.02) a Note Register in which, subject to such
reasonable regulations as it may prescribe, the Note Registrar shall provide for the registration of Notes and of transfers and exchanges of Notes as herein provided. 
  
 Subject to the restrictions and limitations set forth below, upon surrender for registration of transfer of any Note at the
office specified in Section 3.02, the Issuer shall execute and the Note 
  

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 Registrar shall authenticate and deliver, in the name of the designated transferee or transferees, one or more new Notes
in authorized initial Note Principal Balances evidencing the same Class and aggregate Percentage Interests. 
  
 Subject to the foregoing, at the option of the Noteholders, Notes may be exchanged for other Notes of like tenor and in authorized initial Note Principal
Balances evidencing the same Class and aggregate Percentage Interests upon surrender of the Notes to be exchanged at the office specified in Section 3.02. Whenever any Notes are so surrendered for exchange, the Issuer shall execute and the Indenture
Trustee shall authenticate and deliver the Notes which the Noteholder making the exchange is entitled to receive. Each Note presented or surrendered for registration of transfer or exchange shall (if so required by the Note Registrar) be duly
endorsed by, or be accompanied by a written instrument of transfer in form reasonably satisfactory to the Note Registrar duly executed by the Holder thereof or his attorney duly authorized in writing with such signature guaranteed by a commercial
bank or trust company located or having a correspondent located in the city of New York. Notes delivered upon any such transfer or exchange will evidence the same obligations, and will be entitled to the same rights and privileges, as the Notes
surrendered. 
  
 No service charge shall be made for any
registration of transfer or exchange of Notes, but the Note Registrar shall require payment of a sum sufficient to cover any tax or governmental charge that may be imposed in connection with any registration of transfer or exchange of Notes.

  
 The Issuer hereby appoints the Indenture Trustee as (i)
Certificate Registrar to keep at the office of its designated agent as specified in Section 3.02, a Certificate Register pursuant to Section 3.09 of the Trust Agreement in which, subject to such reasonable regulations as it may prescribe, the
Certificate Registrar shall provide for the registration of Certificates and of transfers and exchanges thereof pursuant to Section 3.05 of the Trust Agreement and (ii) Note Registrar under this Indenture. The Indenture Trustee hereby accepts such
appointments. 
  
 Section IV.03 Mutilated, Destroyed, Lost or
Stolen Notes. If (i) any mutilated Note is surrendered to the Indenture Trustee, or the Indenture Trustee receives evidence to its satisfaction of the destruction, loss or theft of any Note, and (ii) there is delivered to the Indenture Trustee
such security or indemnity as may be required by it to hold the Issuer and the Indenture Trustee harmless, then, in the absence of notice to the Issuer, the Note Registrar or the Indenture Trustee that such Note has been acquired by a bona fide
purchaser, and provided that the requirements of Section 8-405 of the UCC are met, the Issuer shall execute, and upon its request the Indenture Trustee shall authenticate and deliver, in exchange for or in lieu of any such mutilated, destroyed, lost
or stolen Note, a replacement Note; provided, however, that if any such destroyed, lost or stolen Note, but not a mutilated Note, shall have become or within seven days shall be due and payable, instead of issuing a replacement Note,
the Issuer may pay such destroyed, lost or stolen Note when so due or payable without surrender thereof. If, after the delivery of such replacement Note or payment of a destroyed, lost or stolen Note pursuant to the proviso to the preceding
sentence, a bona fide purchaser of the original Note in lieu of which such replacement Note was issued presents for payment such original Note, the Issuer and the Indenture Trustee shall be entitled to recover such replacement Note (or such payment)
from the Person to whom it was delivered or any Person taking such replacement Note from such Person to whom such replacement Note was delivered or any assignee of such Person, except a bona fide purchaser, and shall be entitled to recover upon the
security or indemnity provided therefor to the extent of any loss, damage, cost or expense incurred by the Issuer or the Indenture Trustee in connection therewith. 
  

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

  
 Every replacement Note issued pursuant to this Section 4.03 in
replacement of any mutilated, destroyed, lost or stolen Note shall constitute an original additional contractual obligation of the Issuer, whether or not the mutilated, destroyed, lost or stolen Note shall be at any time enforceable by anyone, and
shall be entitled to all the benefits of this Indenture equally and proportionately with any and all other Notes duly issued hereunder. 
  
 The provisions of this Section 4.03 are exclusive and shall preclude (to the extent lawful) all other rights and remedies with respect to the replacement
or payment of mutilated, destroyed, lost or stolen Notes. 
  
 Section IV.04 Persons Deemed Owners. Prior to due presentment for registration of transfer of any Note, the Issuer, the Indenture Trustee, the Paying Agent and any agent of the Issuer or the Indenture Trustee may treat the Person in
whose name any Note is registered (as of the day of determination) as the owner of such Note for the purpose of receiving payments of principal of and interest, if any, on such Note and for all other purposes whatsoever, whether or not such Note be
overdue, and neither the Issuer, the Indenture Trustee, the Paying Agent nor any agent of the Issuer or the Indenture Trustee shall be affected by notice to the contrary. 
  
 Section IV.05 Cancellation. All Notes surrendered for payment, registration of transfer, exchange or redemption
shall, if surrendered to any Person other than the Indenture Trustee, be delivered to the Indenture Trustee and shall be promptly cancelled by the Indenture Trustee. The Issuer may at any time deliver to the Indenture Trustee for cancellation any
Notes previously authenticated and delivered hereunder which the Issuer may have acquired in any manner whatsoever, and all Notes so delivered shall be promptly cancelled by the Indenture Trustee. No Notes shall be authenticated in lieu of or in
exchange for any Notes cancelled as provided in this Section 4.05, except as expressly permitted by this Indenture. All cancelled Notes may be held or disposed of by the Indenture Trustee in accordance with its standard retention or disposal policy
as in effect at the time unless the Issuer shall direct by an Issuer Request that they be destroyed or returned to it; provided, however, that such Issuer Request is timely and the Notes have not been previously disposed of by the
Indenture Trustee. 
  
 Section IV.06 Book-Entry Notes. The
Notes, upon original issuance, will be issued in the form of typewritten Notes representing the Book-Entry Notes, to be delivered to The Depository Trust Company, the initial Depository, by, or on behalf of, the Issuer. The Notes shall initially be
registered on the Note Register in the name of Cede & Co., the nominee of the initial Depository, and 
  

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 no Beneficial Owner will receive a Definitive Note representing such Beneficial Owner’s interest in such Note,
except as provided in Section 4.08. With respect to such Notes, unless and until definitive, fully registered Notes (the “Definitive Notes”) have been issued to Beneficial Owners pursuant to Section 4.08: 
  
 (i) the provisions of this Section 4.06 shall be in full
force and effect; 
  
 (ii) the Note Registrar,
the Paying Agent and the Indenture Trustee shall be entitled to deal with the Depository for all purposes of this Indenture (including the payment of principal of and interest on the Notes and the giving of instructions or directions hereunder) as
the sole holder of the Notes, and shall have no obligation to the Beneficial Owners of the Notes; 
  
 (iii) to the extent that the provisions of this Section 4.06 conflict with any other provisions of this Indenture, the provisions of this
Section 4.06 shall control; 
  
 (iv) the rights
of Beneficial Owners shall be exercised only through the Depository and shall be limited to those established by law and agreements between such Owners of Notes and the Depository and/or the Depository Participants. Unless and until Definitive Notes
are issued pursuant to Section 4.08, the initial Depository will make book-entry transfers among the Depository Participants and receive and transmit payments of principal of and interest on the Notes to such Depository Participants; and 

 
 (v) whenever this Indenture requires or permits actions
to be taken based upon instructions or directions of Holders of Notes evidencing a specified percentage of the Note Principal Balances of the Notes, the Depository shall be deemed to represent such percentage with respect to the Notes only to the
extent that it has received instructions to such effect from Beneficial Owners and/or Depository Participants owning or representing, respectively, such required percentage of the beneficial interest in the Notes and has delivered such instructions
to the Indenture Trustee. 
  
 Section IV.07 Notices to
Depository. Whenever a notice or other communication to the Note Holders is required under this Indenture, unless and until Definitive Notes shall have been issued to Beneficial Owners pursuant to Section 4.08, the Indenture Trustee shall give
all such notices and communications specified herein to be given to Holders of the Notes to the Depository, and shall have no obligation to the Beneficial Owners. 
  
 Section IV.08 Definitive Notes. If (i) the Depositor advises the Indenture Trustee in writing that the Depository is
no longer willing or able to properly discharge its responsibilities with respect to the Book-Entry Notes and the Depositor is unable to locate a qualified successor within 30 days or 
  

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 (ii) the Depositor, at its option (with the consent of the Indenture Trustee, such consent not to be unreasonably
withheld) elects to terminate the book-entry system through the Depository, then the Indenture Trustee shall request that the Depository notify all Beneficial Owners of the occurrence of any such event and of the availability of Definitive Notes to
Beneficial Owners requesting the same. Upon surrender to the Indenture Trustee of the typewritten Notes representing the Book-Entry Notes by the Depository, accompanied by registration instructions, the Issuer shall execute and the Indenture Trustee
shall authenticate the Definitive Notes in accordance with the instructions of the Depository. None of the Issuer, the Note Registrar or the Indenture Trustee shall be liable for any delay in delivery of such instructions and may conclusively rely
on, and shall be protected in relying on, such instructions. Upon the issuance of Definitive Notes, the Indenture Trustee shall recognize the Holders of the Definitive Notes as Noteholders. 
  
 In addition, if an Event of Default has occurred and is continuing, each Note
Owner materially adversely affected thereby may at its option request a Definitive Note evidencing such Noteholder’s interest in the related Class of Notes. In order to make such request, such Noteholder shall, subject to the rules and
procedures of the Depository, provide the Depository or the related Depository Participant with directions for the Indenture Trustee to exchange or cause the exchange of the Noteholder’s interest in such Class of Notes for an equivalent
interest in fully registered definitive form. Upon receipt by the Indenture Trustee of instructions from the Depository directing the Indenture Trustee to effect such exchange (such instructions to contain information regarding the Class of Notes
and the Note Principal Balance being exchanged, the Depository Participant account to be debited with the decrease, the registered holder of and delivery instructions for the Definitive Note, and any other information reasonably required by the
Indenture Trustee), (i) the Indenture Trustee shall instruct the Depository to reduce the related Depository Participant’s account by the aggregate Note Principal Balance of the Definitive Note, (ii) the Indenture Trustee shall execute,
authenticate and deliver, in accordance with the registration and delivery instructions provided by the Depository, a Definitive Note evidencing such Noteholder’s interest in such Class of Notes and (iii) the Indenture Trustee shall execute and
authenticate a new Book-Entry Note reflecting the reduction in the Note Principal Balance of such Class of Notes by the amount of the Definitive Notes. 
  
 Section IV.09 Tax Treatment. The Issuer has entered into this Indenture, and the Notes will be issued with the intention that, for federal, state
and local income, single business and franchise tax purposes, the Notes will qualify as indebtedness. The Issuer and the Securities Administrator (in accordance with Section 6.06 hereof), by entering into this Indenture, and each Noteholder, by its
acceptance of its Note (and each Beneficial Owner by its acceptance of an interest in the applicable Book-Entry Note), agree to treat the Notes for federal, state and local income, single business and franchise tax purposes as indebtedness.

  
 Section IV.10 Satisfaction and Discharge of Indenture.
This Indenture shall cease to be of further effect with respect to the Notes except as to (i) rights of registration of transfer and exchange, (ii) substitution of mutilated, destroyed, lost or stolen Notes, (iii) rights of Noteholders to receive
payments of principal thereof and interest thereon, (iv) Sections 3.03, 3.04, 3.06, 3.09, 3.17, 3.19 and 3.20, (v) the rights, obligations (to the extent applicable to the provisions of the Indenture remaining in effect) and immunities of the
Indenture Trustee and Securities Administrator hereunder (including 
  

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 the rights of the Indenture Trustee and Securities Administrator under Section 6.07 and the obligations of the Indenture
Trustee under Section 4.11), and (vi) the rights of Noteholders as beneficiaries hereof with respect to the property so deposited with the Indenture Trustee payable to all or any of them, and the Indenture Trustee, on demand of and at the expense of
the Issuer, shall execute proper instruments acknowledging satisfaction and discharge of this Indenture with respect to the Notes and shall release and deliver, or cause the Custodian to deliver, the Collateral to or upon the order of the Issuer,
when 
  
 (A) either 
  
 (1) all Notes theretofore authenticated and delivered (other
than (i) Notes that have been destroyed, lost or stolen and that have been replaced or paid as provided in Section 4.03 hereof and (ii) Notes for whose payment money has theretofore been deposited in trust or segregated and held in trust by the
Issuer and thereafter repaid to the Issuer or discharged from such trust, as provided in Section 3.03) have been delivered to the Indenture Trustee for cancellation; or 
  
 (2) all Notes not theretofore delivered to the Indenture Trustee for cancellation 
  
 a. have become due and payable, 
  
 b. will become due and payable at the Final Scheduled
Payment Date within one year, or 
  
 c. have been
called for early redemption and the Trust has been terminated pursuant to Section 8.07 hereof, 
  
 and the Issuer, in the case of a. or b. above, has irrevocably deposited or caused to be irrevocably deposited with the Indenture Trustee cash or direct
obligations of or obligations guaranteed by the United States of America (which will mature prior to the date such amounts are payable), in trust for such purpose, in an amount sufficient to pay and discharge the entire indebtedness on such Notes
then outstanding not theretofore delivered to the Indenture Trustee for cancellation when due on the Final Scheduled Payment Date or other final Payment Date and has delivered to the Indenture Trustee a verification report from a nationally
recognized accounting firm certifying that the amounts deposited with the Indenture Trustee are sufficient to pay and discharge the entire indebtedness of such Notes, or, in the case of c. above, the Issuer shall have complied with all requirements
of Section 8.07 hereof, 
  
 (B) the Issuer has
paid or caused to be paid all other sums payable hereunder; and 
  
 (C) the Issuer has delivered to the Indenture Trustee an Officer’s Certificate and an Opinion of Counsel, each meeting the applicable requirements of Section 10.01 hereof, each stating that all conditions
precedent herein provided for relating to the satisfaction and discharge of this Indenture have been complied with and, if the Opinion of Counsel relates to 
  

 27 

 a deposit made in connection with Section 4.10(A)(2)b. above, such opinion shall further be to the effect
that such deposit will constitute an “in-substance defeasance” within the meaning of Revenue Ruling 85-42, 1985-1 C.B. 36, and in accordance therewith, the Issuer will be the owner of the assets deposited in trust for federal income tax
purposes. 
  
 Section IV.11 Application of Trust Money. All
monies deposited with the Indenture Trustee pursuant to Section 4.10 hereof shall be held in trust and applied by it, in accordance with the provisions of the Notes and this Indenture, to the payment, either directly or through any Paying Agent or
the Issuer, Certificate Paying Agent as designee of the Issuer, as the Indenture Trustee may determine, to the Holders of Securities, of all sums due and to become due thereon for principal and interest or otherwise; but such monies need not be
segregated from other funds except to the extent required herein or required by law. 
  
 Section IV.12 [Reserved]. 
  
 Section IV.13 Repayment of Monies Held by Paying Agent. In connection with the satisfaction and discharge of this Indenture with respect to the Notes, all monies then held by any Person other than the Indenture Trustee under the
provisions of this Indenture with respect to such Notes shall, upon demand of the Issuer, be paid to the Indenture Trustee to be held and applied according to Section 3.05 and thereupon such Person shall be released from all further liability with
respect to such monies. 
  
 Section IV.14 Temporary Notes.
Pending the preparation of any Definitive Notes, the Issuer may execute and upon its written direction, the Indenture Trustee may authenticate and make available for delivery, temporary Notes that are printed, lithographed, typewritten, photocopied
or otherwise produced, in any denomination, substantially of the tenor of the Definitive Notes in lieu of which they are issued and with such appropriate insertions, omissions, substitutions and other variations as the officers executing such Notes
may determine, as evidenced by their execution of such Notes. 
  
 If temporary Notes are issued, the Issuer will cause Definitive Notes to be prepared without unreasonable delay. After the preparation of the Definitive Notes, the temporary Notes shall be exchangeable for Definitive Notes upon surrender of
the temporary Notes at the Corporate Trust Office, without charge to the Holder. Upon surrender for cancellation of any one or more temporary Notes, the Issuer shall execute and the Indenture Trustee shall authenticate and make available for
delivery, in exchange therefor, Definitive Notes of authorized denominations and of like tenor, class and aggregate principal amount. Until so exchanged, such temporary Notes shall in all respects be entitled to the same benefits under this
Indenture as Definitive Notes. 
  
 Section IV.15 Representation
Regarding ERISA. By acquiring a Note or interest therein, each Holder of such Note or Beneficial Owner of any such interest will be deemed to represent that either (1) it is not acquiring the Note with Plan Assets or (2) (A) the acquisition,
holding and transfer 
  

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 of such Note will not give rise to a nonexempt prohibited transaction under Section 406 of ERISA or Section 4975 of the
Code and (B) the Notes are rated investment grade or better and such person believes that the Notes are properly treated as indebtedness without substantial equity features for purposes of the Department of Labor regulation 29 C.F.R. §
2510.3-101, and agrees to so treat the Notes. Alternatively, regardless of the rating of the Notes, such person may provide the Indenture Trustee and the Owner Trustee with an Opinion of Counsel, which Opinion of Counsel will not be at the expense
of the Issuer, the Depositor, the Seller, any Underwriter, the Owner Trustee, the Indenture Trustee, the Securities Administrator, the Master Servicer, the Servicer or the Special Servicer which opines that the acquisition, holding and transfer of
such Note or interest therein is permissible under applicable law, will not constitute or result in a non-exempt prohibited transaction under ERISA or Section 4975 of the Code and will not subject the Issuer, the Seller, the Depositor, any
Underwriter, the Owner Trustee, the Indenture Trustee, the Securities Administrator, the Master Servicer, the Servicer or the Special Servicer to any obligation in addition to those undertaken in the Indenture and the other Basic Documents.

  
  
 ARTICLE V 
  
 Default and Remedies

  
 Section V.01 Events of Default. The Issuer shall
deliver to the Indenture Trustee, within five days after learning of the occurrence of an Event of Default, written notice in the form of an Officer’s Certificate of any event which with the giving of notice and the lapse of time would become
an Event of Default under clause (iii), (iv) or (v) of the definition of “Event of Default”, its status and what action the Issuer is taking or proposes to take with respect thereto. The Indenture Trustee shall not be deemed to have
knowledge of any Event of Default unless a Responsible Officer has actual knowledge thereof or unless written notice of such Event of Default is received by a Responsible Officer and such notice references the Notes, the Trust Estate or this
Indenture. 
  
 Section V.02 Acceleration of Maturity;
Rescission and Annulment. If an Event of Default should occur and be continuing, then and in every such case the Indenture Trustee at the written direction of the Holders of Notes representing not less than a majority of the aggregate Note
Principal Balance of the Notes may declare the Notes to be immediately due and payable, by a notice in writing to the Issuer (and to the Indenture Trustee if such notice is given by Noteholders), and upon any such declaration the unpaid Note
Principal Balance of the Notes, together with accrued and unpaid interest thereon through the date of acceleration, shall become immediately due and payable. 
  
 At any time after such declaration of acceleration of maturity with respect to an Event of Default has been made and before a judgment or decree for
payment of the money due has been obtained by the Indenture Trustee as hereinafter in this Article V provided, Holders of the Notes representing not less than a majority of the aggregate Note Principal Balance of the Notes, by written 
  

 29 

 notice to the Issuer and the Indenture Trustee, may, subject to Section 5.12, waive the related Event of Default and
rescind and annul such declaration and its consequences if 
  
 (i) the Issuer has paid or deposited with the Indenture Trustee a sum sufficient to pay: 
  
 (A) all payments of principal of and interest on the Notes and all other amounts that would then be due hereunder or upon the Notes if
the Event of Default giving rise to such acceleration had not occurred; 
  
 (B) all sums paid or advanced by the Indenture Trustee hereunder and the reasonable compensation, expenses, disbursements and advances of the Indenture Trustee and its agents and counsel; and 
  
 (ii) all Events of Default, other than the nonpayment of the
principal of the Notes that has become due solely by such acceleration, have been cured or waived as provided in Section 5.12. 
  
 No such rescission shall affect any subsequent default or impair any right consequent thereto. 
  
 Section V.03 Collection of Indebtedness and Suits for Enforcement by Indenture Trustee. 
  
 (a) The Issuer covenants that if (i) default is made in the payment of any
interest on any Note when the same becomes due and payable, and such default continues for a period of five days, or (ii) default is made in the payment of the principal of or any installment of the principal of any Note when the same becomes due
and payable, the Issuer shall, upon demand of the Indenture Trustee, acting at the direction of the Holders of a majority of the aggregate Note Principal Balances of the Notes, pay to the Indenture Trustee, for the benefit of the Holders of Notes,
the whole amount then due and payable on the Notes for principal and interest, with interest at the applicable Note Interest Rate upon the overdue principal, and in addition thereto such further amount as shall be sufficient to cover the costs and
expenses of collection, including the reasonable compensation, expenses, disbursements and advances of the Indenture Trustee and its agents and counsel. 
  
 (b) In case the Issuer shall fail forthwith to pay such amounts upon such demand, the Indenture Trustee, in its own name and as trustee of an express
trust, subject to the provisions of Section 10.16 hereof may institute a Proceeding for the collection of the sums so due and unpaid, and may prosecute such Proceeding to judgment or final decree, and may enforce the same against the Issuer or other
obligor upon the Notes and collect in the manner provided by law out of the property of the Issuer or other obligor the Notes, wherever situated, the monies adjudged or decreed to be payable. 
  

 30 

 (c) If an Event of Default occurs and is continuing, the Indenture Trustee, subject to the provisions of
Section 10.16 hereof may, as more particularly provided in Section 5.04 hereof, in its discretion, proceed to protect and enforce its rights and the rights of the Noteholders, by such appropriate Proceedings, as directed in writing by Holders of a
majority of the aggregate Note Principal Balances of the Notes, to protect and enforce any such rights, whether for the specific enforcement of any covenant or agreement in this Indenture or in aid of the exercise of any power granted herein, or to
enforce any other proper remedy or legal or equitable right vested in the Indenture Trustee by this Indenture or by law. 
  
 (d) In case there shall be pending, relative to the Issuer or any other obligor upon the Notes or any Person having or claiming an ownership interest in
the Trust Estate, Proceedings under Title 11 of the United States Code or any other applicable federal or state bankruptcy, insolvency or other similar law, or in case a receiver, assignee or trustee in bankruptcy or reorganization, liquidator,
sequestrator or similar official shall have been appointed for or taken possession of the Issuer or its property or such other obligor or Person, or in case of any other comparable judicial Proceedings relative to the Issuer or other obligor upon
the Notes, or to the creditors or property of the Issuer or such other obligor, the Indenture Trustee, as directed in writing by Holders of a majority of the aggregate Note Principal Balances of the Notes, irrespective of whether the principal of
any Notes shall then be due and payable as therein expressed or by declaration or otherwise and irrespective of whether the Indenture Trustee shall have made any demand pursuant to the provisions of this Section, shall be entitled and empowered, by
intervention in such Proceedings or otherwise: 
  
 (i) to file and prove a claim or claims for the whole amount of principal and interest owing and unpaid in respect of the Notes and to file such other papers or documents as may be necessary or advisable in order to have the claims of the
Indenture Trustee (including any claim for reasonable compensation to the Indenture Trustee and each predecessor Indenture Trustee, and their respective agents, attorneys and counsel, and for reimbursement of all expenses and liabilities incurred,
and all advances made, by the Indenture Trustee and each predecessor Indenture Trustee, except as a result of negligence or bad faith) and of the Noteholders allowed in such Proceedings; 
  
 (ii) unless prohibited by applicable law and regulations, to vote on behalf of the Holders of Notes in any
election of a trustee, a standby trustee or Person performing similar functions in any such Proceedings; 
  
 (iii) to collect and receive any monies or other property payable or deliverable on any such claims and to distribute all amounts received
with respect to the claims of the Noteholders and of the Indenture Trustee on their behalf, and 
  

 31 

 (iv) to file such proofs of claim and other papers or documents as may be necessary or
advisable in order to have the claims of the Indenture Trustee or the Holders of Notes allowed in any judicial proceedings relative to the Issuer, its creditors and its property; 
  
 and any trustee, receiver, liquidator, custodian or other similar official in any such Proceeding is hereby authorized by each of such
Noteholders to make payments to the Indenture Trustee and, in the event that the Indenture Trustee shall consent to the making of payments directly to such Noteholders, to pay to the Indenture Trustee such amounts as shall be sufficient to cover
reasonable compensation to the Indenture Trustee, each predecessor Indenture Trustee and their respective agents, attorneys and counsel, and all other expenses and liabilities incurred, and all advances made, by the Indenture Trustee and each
predecessor Indenture Trustee. 
  
 (e) Nothing herein contained
shall be deemed to authorize the Indenture Trustee to authorize or consent to or vote for or accept or adopt on behalf of any Noteholder any plan of reorganization, arrangement, adjustment or composition affecting the Notes or the rights of any
Holder thereof or to authorize the Indenture Trustee to vote in respect of the claim of any Noteholder in any such proceeding except, as aforesaid, to vote for the election of a trustee in bankruptcy or similar Person. 
  
 (f) All rights of action and of asserting claims under this Indenture, or
under any of the Notes, may be enforced by the Indenture Trustee without the possession of any of the Notes or the production thereof in any trial or other Proceedings relative thereto, and any such action or proceedings instituted by the Indenture
Trustee shall be brought in its own name as trustee of an express trust, and any recovery of judgment, subject to the payment of the expenses, disbursements and compensation of the Indenture Trustee, each predecessor Indenture Trustee and their
respective agents and attorneys, shall be for the ratable benefit of the Holders of the Notes, subject to Section 5.05 hereof. 
  
 (g) In any Proceedings brought by the Indenture Trustee (and also any Proceedings involving the interpretation of any provision of this Indenture to which
the Indenture Trustee shall be a party), the Indenture Trustee shall be held to represent all the Holders of the Notes, and it shall not be necessary to make any Noteholder a party to any such Proceedings. 
  
 Section V.04 Remedies; Priorities. (a) If an Event of Default shall
have occurred and be continuing and if an acceleration has been declared and not rescinded pursuant to Section 5.02 hereof, the Indenture Trustee subject to the provisions of Section 10.16 hereof may, and shall, at the written direction of the
Holders of a majority of the aggregate Note Principal Balances of the Notes (subject to Section 6.02(k)) do one or more of the following (subject to Section 5.05 hereof): 
  
 (i) institute Proceedings in its own name and as trustee of an express trust for the collection of all
amounts then payable on the Notes or under this Indenture with respect thereto, whether by declaration or otherwise, enforce any judgment obtained and collect from the Issuer and any other obligor upon such Notes monies adjudged due; 
  

 32 

 (ii) institute Proceedings from time to time for the complete or partial foreclosure of
this Indenture with respect to the Trust Estate; 
  
 (iii) exercise any remedies of a secured party under the UCC and take any other appropriate action to protect and enforce the rights and remedies of the Indenture Trustee and the Holders of the Notes; and 
  
 (iv) sell the Trust Estate or any portion thereof or rights
or interest therein, at one or more public or private sales called and conducted in any manner permitted by law; 
  
 provided, however, that the Indenture Trustee may not sell or otherwise liquidate the Trust Estate following an Event of Default, unless (A) the Indenture
Trustee obtains the consent of the Holders of 100% of the aggregate Note Principal Balance of the Notes, (B) the proceeds of such sale or liquidation distributable to the Holders of the Notes are sufficient to discharge in full all amounts then due
and unpaid upon such Notes for principal and interest or (C) the Indenture Trustee determines that the Mortgage Loans will not continue to provide sufficient funds for the payment of principal of and interest on the applicable Notes as they would
have become due if the Notes had not been declared due and payable, and the Indenture Trustee obtains the consent of Holders of 662/3% of the aggregate Note Principal Balance of the Notes. In determining such sufficiency or insufficiency with
respect to clause (B) and (C), the Indenture Trustee may, but need not, obtain and rely upon an opinion (obtained at the expense of the Trust) of an Independent investment banking or accounting firm of national reputation as to the feasibility of
such proposed action and as to the sufficiency of the Trust Estate for such purpose. Notwithstanding the foregoing, so long as an “Event of Default” under the HomeBanc Servicing Agreement has not occurred, any Sale of the Trust Estate
shall be made subject to the continued servicing of the Mortgage Loans by the Servicer as provided in the HomeBanc Servicing Agreement. 
  
 (b) If the Indenture Trustee collects any money or property pursuant to this Article V, it shall pay out the money or property in the following order:

  
 FIRST: to the Indenture Trustee and the
Securities Administrator for amounts due under Section 6.07 hereof or the Sale and Servicing Agreement, to the Master Servicer for amounts due under the Sale and Servicing Agreement and to the Custodian for amounts due under Section 3.4 of the
Custodial Agreement; 
  
 SECOND: to the
Noteholders for amounts due and unpaid on the Notes with respect to interest (not including any Basis Risk Shortfall Carry-Forward Amounts), first, to the Class I-A Noteholders and Class II-A Noteholders, second, to the Class I-M-1 Noteholders and

  

 33 

 Class II-M-1 Noteholders, third, to the Class II-M-1 Noteholders and Class II-M-2 Noteholders and fourth,
to the Class I-B Noteholders and Class II-B Noteholders according to the amounts due and payable on the Notes for interest; 
  
 THIRD: to the Noteholders for amounts due and unpaid on the Notes with respect to principal, and to each Noteholder ratably, without
preference or priority of any kind, according to the amounts due and payable on such Notes for principal, until the Note Principal Balance of each such Class is reduced to zero; 
  
 FOURTH: to the Noteholders, first to the Class I-M-1 Noteholders and Class II-M-1 Noteholders, second to the
Class I-M-2 Noteholders and Class II-M-2 Noteholders and third, to the Class I-B Noteholders and Class II-B Noteholders, the amount of any related Allocated Realized Loss Amount not previously paid; 
  
 FIFTH: to the Noteholders for amounts due and unpaid on the
Notes with respect to any related Basis Risk Shortfall Carry-Forward Amounts, (x) from amount remaining with respect to the Group I Loans, first, to the Class I-A Noteholders, second, to the Class I-M-1 Noteholders, third, to the Class I-M-2
Noteholders and fourth, to the Class I-B Noteholders and (y) from amount remaining with respect to the Group II Loans, first, to the Class II-A Noteholders, second, to the Class II-M-1 Noteholders, third, to the Class II-M-2 Noteholders and fourth,
to the Class II-B Noteholders; and 
  
 SIXTH: to
the payment of the remainder, if any to the Certificate Paying Agent on behalf of the Issuer or to any other person legally entitled thereto. 
  
 The Indenture Trustee may fix a record date and Payment Date for any payment to Noteholders pursuant to this Section 5.04. At least 15 days before such
record date, the Indenture Trustee shall mail to each Noteholder a notice that states the record date, the Payment Date and the amount to be paid. 
  
 Section V.05 Optional Preservation of the Trust Estate. If the Notes have been declared to be due and payable under Section 5.02 following an Event
of Default and such declaration and its consequences have not been rescinded and annulled, the Indenture Trustee may elect to take and maintain possession of the Trust Estate. It is the desire of the parties hereto and the Noteholders that there be
at all times sufficient funds for the payment of principal of and interest on the Notes and other obligations of the Issuer and, the Indenture Trustee shall take such desire into account when determining whether or not to take and maintain
possession of the Trust Estate. In determining whether to take and maintain possession of the Trust Estate, the Indenture Trustee may, but need not, obtain and rely upon an opinion of an Independent investment banking or accounting firm of national
reputation as to the feasibility of such proposed action and as to the sufficiency of the Trust Estate for such purpose. 
  
 Section V.06 Limitation of Suits. No Holder of any Note shall have any right to institute any Proceeding, judicial or otherwise, with respect to
this Indenture, or for the appointment of a receiver 
  

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 or trustee, or for any other remedy hereunder, unless and subject to the provisions of Section 10.16 hereof 

 
 (i) such Holder has previously given written notice to
the Indenture Trustee of a continuing Event of Default; 
  
 (ii) the Holders of not less than 25% of the aggregate Note Principal Balances of the Notes have made a written request to the Indenture Trustee to institute such Proceeding in respect of such Event of Default in its
own name as Indenture Trustee hereunder; 
  
 (iii) such Holder or Holders have offered to the Indenture Trustee reasonable indemnity against the costs, expenses and liabilities to be incurred in complying with such request; 
  
 (iv) the Indenture Trustee for 60 days after its receipt of
such notice of request and offer of indemnity has failed to institute such Proceedings; and 
  
 (v) no direction inconsistent with such written request has been given to the Indenture Trustee during such 60-day period by the Holders
of a majority of the Note Principal Balances of the Notes. 
  
 It is understood
and intended that no one or more Holders of Notes shall have any right in any manner whatever by virtue of, or by availing of, any provision of this Indenture to affect, disturb or prejudice the rights of any other Holders of Notes or to obtain or
to seek to obtain priority or preference over any other Holders or to enforce any right under this Indenture, except in the manner herein provided. 
  
 Subject to the last paragraph of Section 5.11 herein, in the event the Indenture Trustee shall receive conflicting or inconsistent requests and indemnity from two or more
groups of Holders of Notes, each representing less than a majority of the Note Principal Balances of the Notes, the Indenture Trustee shall take such action as requested by the Holders representing the highest amount (in the aggregate) of Note
Principal Balances notwithstanding any other provisions of this Indenture. 
  
 Section V.07 Unconditional Rights of Noteholders To Receive Principal and Interest. Notwithstanding any other provisions in this Indenture, the Holder of any Note shall have the right, which is absolute and
unconditional, to receive payment of the principal of and interest, if any, on such Note on or after the respective due dates thereof expressed in such Note or in this Indenture and to institute suit for the enforcement of any such payment, and such
right shall not be impaired without the consent of such Holder. 
  

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 Section V.08 Restoration of Rights and Remedies. If the Indenture Trustee or any Noteholder has
instituted any Proceeding to enforce any right or remedy under this Indenture and such Proceeding has been discontinued or abandoned for any reason or has been determined adversely to the Indenture Trustee or to such Noteholder, then and in every
such case the Issuer, the Indenture Trustee and the Noteholders shall, subject to any determination in such Proceeding, be restored severally and respectively to their former positions hereunder, and thereafter all rights and remedies of the
Indenture Trustee and the Noteholders shall continue as though no such Proceeding had been instituted. 
  
 Section V.09 Rights and Remedies Cumulative. No right or remedy herein conferred upon or reserved to the Indenture Trustee or to the Noteholders is
intended to be exclusive of any other right or remedy, and every right and remedy shall, to the extent permitted by law, be cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity
or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other appropriate right or remedy. 
  
 Section V.10 Delay or Omission Not a Waiver. No delay or omission of
the Indenture Trustee or any Holder of any Note to exercise any right or remedy accruing upon any Event of Default shall impair any such right or remedy or constitute a waiver of any such Event of Default or an acquiescence therein. Every right and
remedy given by this Article V or by law to the Indenture Trustee or to the Noteholders may be exercised from time to time, and as often as may be deemed expedient, by the Indenture Trustee or by the Noteholders, as the case may be. 
  
 Section V.11 Control By Noteholders. The Holders of a majority of the
aggregate Note Principal Balances of Notes shall have the right to direct the time, method and place of conducting any Proceeding for any remedy available to the Indenture Trustee with respect to the Notes or exercising any trust or power conferred
on the Indenture Trustee (subject to the Indenture Trustee’s right to receive indemnity, as provided herein); provided that: 
  
 (i) such direction shall not be in conflict with any rule of law or with this Indenture; 
  
 (ii) any direction to the Indenture Trustee to sell or
liquidate the Trust Estate shall be by Holders of Notes representing not less than 100% of the Note Principal Balances of the Notes; and 
  

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 (iii) the Indenture Trustee may take any other action deemed proper by the Indenture
Trustee that is not inconsistent with such direction of the Holders of Notes representing a majority of the Note Principal Balances of the Notes. 
  
 Notwithstanding the rights of Noteholders set forth in this Section 5.11 the Indenture Trustee need not take any action that it deems unduly prejudicial to any Noteholder
or that it determines might subject it to liability. 
  
 Section
V.12 Waiver of Past Defaults. Prior to the declaration of the acceleration of the maturity of the Notes as provided in Section 5.02 hereof, the Holders of Notes representing not less than a majority of the aggregate Note Principal Balance of
the Notes may waive any past Event of Default and its consequences except an Event of Default (a) with respect to payment of principal of or interest on any of the Notes or (b) in respect of a covenant or provision hereof which cannot be modified or
amended without the consent of the Holder of each Note. In the case of any such waiver, the Issuer, the Indenture Trustee and the Holders of the Notes shall be restored to their former positions and rights hereunder, respectively, but no such waiver
shall extend to any subsequent or other Event of Default or impair any right consequent thereto. 
  
 Upon any such waiver, any Event of Default arising therefrom shall be deemed to have been cured and not to have occurred, for every purpose of this
Indenture; but no such waiver shall extend to any subsequent or other Event of Default or impair any right consequent thereto. 
  
 Section V.13 Undertaking for Costs. All parties to this Indenture agree, and each Holder of any Note and each Beneficial Owner of any interest
therein by such Holder’s or Beneficial Owner’s acceptance thereof shall be deemed to have agreed, that any court may in its discretion require, in any suit for the enforcement of any right or remedy under this Indenture, or in any suit
against the Indenture Trustee for any action taken, suffered or omitted by it as Indenture Trustee, the filing by any party litigant in such suit of an undertaking to pay the costs of such suit, and that such court may in its discretion assess
reasonable costs, including reasonable attorneys’ fees, against any party litigant in such suit, having due regard to the merits and good faith of the claims or defenses made by such party litigant; but the provisions of this Section 5.13 shall
not apply to (a) any suit instituted by the Indenture Trustee, (b) any suit instituted by any Noteholder, or group of Noteholders, in each case holding in the aggregate more than 10% of the Note Principal Balances of the Notes or (c) any suit
instituted by any Noteholder for the enforcement of the payment of principal of or interest on any Note on or after the respective due dates expressed in such Note and in this Indenture. 
  
 Section V.14 Waiver of Stay or Extension Laws. The Issuer covenants (to the extent that it may lawfully do so) that
it will not at any time insist upon, or plead or in any manner whatsoever, claim or take the benefit or advantage of, any stay or extension law wherever enacted, now or at any time hereafter in force, that may affect the covenants or the performance
of this Indenture; and the Issuer (to the extent that it may lawfully do so) hereby expressly waives all benefit or advantage of any such law, and covenants that it shall not hinder, delay or impede the execution of any power herein granted to the
Indenture Trustee, but will suffer and permit the execution of every such power as though no such law had been enacted. 
  

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 Section V.15 Sale of Trust Estate. (a) The power to effect any sale or other disposition (a
“Sale”) of any portion of the Trust Estate pursuant to Section 5.04 hereof is expressly subject to the provisions of Section 5.05 hereof and this Section 5.15. The power to effect any such Sale shall not be exhausted by any one or more
Sales as to any portion of the Trust Estate remaining unsold, but shall continue unimpaired until the entire Trust Estate shall have been sold or all amounts payable on the Notes and under this Indenture shall have been paid. The Indenture Trustee
may from time to time postpone any public Sale by public announcement made at the time and place of such Sale. The Indenture Trustee hereby expressly waives its right to any amount fixed by law as compensation for any Sale. 
  
 (b) The Indenture Trustee shall not in any private Sale sell the Trust
Estate, or any portion thereof, unless 
  
 (1)
the Holders of all Notes consent to or direct the Indenture Trustee to make, such Sale, or 
  
 (2) the proceeds of such Sale would be not less than the entire amount which would be payable to the Noteholders under the Notes, in full
payment thereof in accordance with Section 5.02 hereof, on the Payment Date next succeeding the date of such Sale, or 
  
 (3) the Indenture Trustee determines that the conditions for retention of the Trust Estate set forth in Section 5.05 hereof cannot be
satisfied (in making any such determination, the Indenture Trustee may rely upon an opinion of an Independent investment banking firm obtained and delivered as provided in Section 5.05 hereof) and the Holders of Notes representing at least 66-2/3%
of the Note Principal Balances of the Notes consent to such Sale. 
  
 The purchase
by the Indenture Trustee of all or any portion of the Trust Estate at a private Sale shall not be deemed a Sale or other disposition thereof for purposes of this Section 5.15(b). 
  
 (c) Unless the Holders representing at least 66 2/3% of the Note Principal Balances of the Notes have otherwise consented or directed the Indenture Trustee, at any public Sale of all or any portion of the Trust Estate at which a
minimum bid equal to or greater than the amount described in paragraph (2) of subsection (b) of this Section 5.15 has not been established by the Indenture Trustee and no Person bids an amount equal to or greater than such amount, the Indenture
Trustee, acting in its capacity as Indenture Trustee on behalf of the Noteholders, shall bid an amount (which shall include the Indenture Trustee’s right, in its capacity as Indenture Trustee, to credit bid) at least $1.00 more than the highest
other bid in order to preserve the Trust Estate on behalf of the Noteholders. 
  

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 (d) In connection with a Sale of all or any portion of the Trust Estate, 
  
 (1) any Holder or Holders of Notes may bid for and purchase
the property offered for sale, and upon compliance with the terms of sale may hold, retain and possess and dispose of such property, without further accountability, and may, in paying the purchase money therefor, deliver any Notes or claims for
interest thereon in lieu of cash up to the amount which shall, upon distribution of the net proceeds of such sale, be payable thereon, and such Notes, in case the amounts so payable thereon shall be less than the amount due thereon, shall be
returned to the Holders thereof after being appropriately stamped to show such partial payment; 
  
 (2) the Indenture Trustee, may bid for and acquire the property offered for Sale in connection with any Sale thereof, and, subject to any
requirements of, and to the extent permitted by, applicable law in connection therewith, may purchase all or any portion of the Trust Estate in a private sale, and, in lieu of paying cash therefor, may make settlement for the purchase price by
crediting the gross Sale price against the sum of (A) the amount which would be distributable to the Holders of the Notes and Holders of Certificates as a result of such sale on the Payment Date next succeeding the date of such Sale and (B) the
expenses of the Sale and of any Proceedings in connection therewith which are reimbursable to it, without being required to produce the Notes in order to complete any such Sale or in order for the net Sale price to be credited against such Notes,
and any property so acquired by the Indenture Trustee shall be held and dealt with by it in accordance with the provisions of this Indenture; 
  
 (3) the Indenture Trustee shall execute and deliver an appropriate instrument of conveyance, prepared by the Issuer and satisfactory to
the Indenture Trustee, transferring its interest in any portion of the Trust Estate in connection with a Sale thereof; 
  
 (4) the Indenture Trustee is hereby irrevocably appointed the agent and attorney-in-fact of the Issuer to transfer and convey its interest
in any portion of the Trust Estate in connection with a Sale thereof, and to take all action necessary to effect such Sale; and 
  
 (5) no purchaser or transferee at such a Sale shall be bound to ascertain the Indenture Trustee’s authority, inquire into the
satisfaction of any conditions precedent or see to the application of any monies. 
  

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 Section V.16 Action on Notes. The Indenture Trustee’s right to seek and recover judgment on
the Notes or under this Indenture shall not be affected by the seeking, obtaining or application of any other relief under or with respect to this Indenture. Neither the lien of this Indenture nor any rights or remedies of the Indenture Trustee or
the Noteholders shall be impaired by the recovery of any judgment by the Indenture Trustee against the Issuer or by the levy of any execution under such judgment upon any portion of the Trust Estate or upon any of the assets of the Issuer. Any money
or property collected by the Indenture Trustee shall be applied in accordance with Section 5.04(b) hereof. 
  
 Section V.17 Performance and Enforcement of Certain Obligations. (a) Promptly following a request from the Indenture Trustee to do so, the Issuer
in its capacity as holder of the Mortgage Loans, shall take all such lawful action as the Indenture Trustee may request to cause the Issuer to compel or secure the performance and observance by the Seller and the Master Servicer, as applicable, of
each of their obligations to the Issuer under or in connection with the Mortgage Loan Purchase Agreement and the Sale and Servicing Agreement, and to exercise any and all rights, remedies, powers and privileges lawfully available to the Issuer under
or in connection with the Mortgage Loan Purchase Agreement and the Sale and Servicing Agreement to the extent and in the manner directed by the Indenture Trustee, as pledgee of the Mortgage Loans, including the transmission of notices of default on
the part of the Seller or the Master Servicer thereunder and the institution of legal or administrative actions or proceedings to compel or secure performance by the Seller or the Master Servicer of each of their obligations under the Mortgage Loan
Purchase Agreement and the Sale and Servicing Agreement. 
  
 (b)
The Indenture Trustee, as pledgee of the Mortgage Loans, may, and at the direction (which direction shall be in writing or by telephone (confirmed in writing promptly thereafter)) of the Holders of 66-2/3% of the Note Principal Balances of the Notes
(subject to Section 6.02(k)) shall, exercise all rights, remedies, powers, privileges and claims of the Issuer against the Seller or the Master Servicer under or in connection with the Mortgage Loan Purchase Agreement and the Sale and Servicing
Agreement, including the right or power to take any action to compel or secure performance or observance by the Seller or the Master Servicer, as the case may be, of each of their obligations to the Issuer thereunder and to give any consent,
request, notice, direction, approval, extension or waiver under the Mortgage Loan Purchase Agreement and the Sale and Servicing Agreement, as the case may be, and any right of the Issuer to take such action shall not be suspended. 
  

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 ARTICLE VI 
  
 The Indenture Trustee and Securities Administrator 
  
 Section VI.01 Duties of Indenture Trustee and Securities Administrator. (a) If an Event of Default of which the Indenture Trustee has actual
knowledge or has received written notice has occurred and is continuing, the Indenture Trustee shall exercise the rights and powers vested in it by this Indenture, and use the same degree of care and skill in its exercise as a prudent person would
exercise or use under the circumstances in the conduct of such person’s own affairs. 
  
 (b) Except during the continuance of an Event of Default of which the Indenture Trustee has actual knowledge or has received written notice, in the case of the Indenture Trustee and, at any time, in the case of the
Securities Administrator: 
  
 (i) the Indenture
Trustee and the Securities Administrator undertake to perform such duties and only such duties as are specifically set forth in this Indenture and the other Basic Documents to which it is a party and no implied covenants or obligations shall be read
into this Indenture and the other Basic Documents against the Indenture Trustee or the Securities Administrator; and 
  
 (ii) in the absence of bad faith on its part, the Indenture Trustee and the Securities Administrator may each conclusively rely, as to the
truth of the statements and the correctness of the opinions expressed therein, upon certificates or opinions furnished to each of the Indenture Trustee and the Securities Administrator and conforming to the requirements of this Indenture; however,
the Indenture Trustee and the Securities Administrator shall each examine the certificates and opinions to determine whether or not they conform on their face to the requirements of this Indenture. 
  
 (c) The Indenture Trustee and the Securities Administrator may not be
relieved from liability for each of its own negligent action, its own negligent failure to act or its own willful misconduct, except that: 
  
 (i) this paragraph does not limit the effect of paragraph (b) of this Section 6.01; 
  
 (ii) neither the Indenture Trustee nor the Securities
Administrator shall be liable for any error of judgment made in good faith by a Responsible Officer unless it is proved that the Indenture Trustee or the Securities Administrator was negligent in ascertaining the pertinent facts; and 
  

 41 

 (iii) neither the Indenture Trustee nor the Securities Administrator shall be liable with
respect to any action it takes or omits to take in good faith in accordance with a direction received by it from Noteholders or from the Issuer, which they are entitled to give under the Basic Documents. 
  
 (d) The Indenture Trustee shall not be liable for interest on any money
received by it except as the Indenture Trustee may agree in writing with the Issuer. 
  
 (e) Money held in trust by the Indenture Trustee need not be segregated from other trust funds except to the extent required by law or the terms of this Indenture, the Sale and Servicing Agreement or the Trust
Agreement. 
  
 (f) No provision of this Indenture shall require
the Indenture Trustee or the Securities Administrator to expend or risk its own funds or otherwise incur financial liability in the performance of any of its duties hereunder or in the exercise of any of its rights or powers, if it shall have
reasonable grounds to believe that repayment of such funds or indemnity satisfactory to it against such risk or liability is not reasonably assured to it. 
  
 (g) Every provision of this Indenture relating to the conduct or affecting the liability of or affording protection to the Indenture Trustee shall be
subject to the provisions of this Section and to the provisions of the TIA. 
  
 (h) The Indenture Trustee shall act in accordance with Sections 6.03 and 6.04 of the Sale and Servicing Agreement and shall act as successor to the Master Servicer or appoint a successor Master Servicer in accordance
with Section 6.02 of the Sale and Servicing Agreement. 
  
 Section
VI.02 Rights of Indenture Trustee and Securities Administrator. Except as provided in Section 6.01: (a) The Indenture Trustee and the Securities Administrator may rely on any document believed by it to be genuine and to have been signed or
presented by the proper person. The Indenture Trustee and the Securities Administrator need not investigate any fact or matter stated in the document. 
  
 (b) Before the Indenture Trustee or the Securities Administrator acts or refrains from acting, it may require an Officer’s Certificate or an Opinion
of Counsel. Neither the Indenture Trustee nor the Securities Administrator shall be liable for any action it takes or omits to take in good faith in reliance on an Officer’s Certificate or Opinion of Counsel. 
  

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 (c) Neither the Indenture Trustee nor the Securities Administrator shall be liable for any action it
takes or omits to take in good faith which it believes to be authorized or within its rights or powers; provided, however, that the Indenture Trustee’s or Securities Administrator’s conduct does not constitute willful
misconduct, negligence or bad faith. 
  
 (d) The Indenture Trustee
or the Securities Administrator may each consult with counsel, and the advice or Opinion of Counsel (which shall not be at the expense of the Indenture Trustee or the Securities Administrator) with respect to legal matters relating to this Indenture
and the Notes shall be full and complete authorization and protection from liability in respect to any action taken, omitted or suffered by it hereunder in good faith and in accordance with the advice or opinion of such counsel. 
  
 (e) For the limited purpose of effecting any action to be undertaken by each
of the Indenture Trustee and the Securities Administrator, but not specifically as a duty of the Indenture Trustee or the Securities Administrator in the Indenture, each of the Indenture Trustee and the Securities Administrator may execute any of
the trusts or powers hereunder or perform any duties hereunder, either directly or by or through agents, attorneys, custodians or nominees appointed with due care, and shall not be responsible for any willful misconduct or negligence on the part of
any agent, attorney, custodian or nominee so appointed. 
  
 (f)
The Indenture Trustee or its Affiliates are permitted to receive additional compensation that could be deemed to be in the Indenture Trustee’s economic self-interest for (i) serving as investment adviser, administrator, shareholder servicing
agent, custodian or sub-custodian with respect to certain of the Permitted Investments, (ii) using Affiliates to effect transactions in certain Permitted Investments and (iii) effecting transactions in certain Permitted Investments. Such
compensation shall not be considered an amount that is reimbursable or payable to the Indenture Trustee (i) pursuant to Sections 3.05(d), 5.04(b) or 6.07 hereunder or (ii) out of Available Funds. 
  
 (g) Anything in this Indenture to the contrary notwithstanding, in no event
shall the Indenture Trustee or the Securities Administrator be liable for special, indirect or consequential loss or damage of any kind whatsoever (including but not limited to lost profits), even if the Indenture Trustee or the Securities
Administrator, respectively, has been advised of the likelihood of such loss or damage and regardless of the form of action. 
  
 (h) None of the Securities Administrator, the Issuer or the Indenture Trustee shall be responsible for the acts or omissions of the other, it being
understood that this Indenture shall not be construed to render them partners, joint venturers or agents of one another. 
  

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 (i) Neither the Indenture Trustee nor the Securities Administrator shall 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 Indenture shall in any event require the Indenture Trustee or the Securities Administrator to perform, or be responsible for the
manner of performance of, any of the obligations of the Master Servicer under the Sale and Servicing Agreement, except during such time, if any, as the Indenture Trustee shall be the successor to, and be vested with the rights, duties, powers and
privileges of, the Master Servicer in accordance with the terms of the Sale and Servicing Agreement. 
  
 (j) Except for those actions that the Indenture Trustee or the Securities Administrator are required to take hereunder, neither the Indenture Trustee nor
the Securities Administrator shall have any obligation or liability to take any action or to refrain from taking any action hereunder in the absence of written direction as provided hereunder. 
  
 (k) Neither the Indenture Trustee nor the Securities Administrator shall be
under any obligation to exercise any of the trusts or powers vested in it by this Indenture, other than its obligation to give notices pursuant to this Indenture, or to institute, conduct or defend any litigation hereunder or in relation hereto at
the request, order or direction of any of the Noteholders pursuant to the provisions of this Indenture, unless such Noteholders shall have offered to the Indenture Trustee reasonable security or indemnity against the costs, expenses and liabilities
which may be incurred therein or thereby. Nothing contained herein shall, however, relieve the Indenture Trustee of the obligation, upon the occurrence of an Event of Default of which a Responsible Officer of the Indenture Trustee has actual
knowledge (which has not been cured or waived), to exercise such of the rights and powers vested in it by this Indenture and to use the same degree of care and skill in their exercise as a prudent person would exercise under the circumstances in the
conduct of his own affairs. 
  
 (l) Neither the Indenture Trustee
nor the Securities Administrator shall be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement, instrument, opinion, report, notice, request, consent, order, approval, bond or other paper or
document, unless requested in writing to do so by Holders of Notes representing not less than 25% of the Note Principal Balance of the Notes and provided that the payment within a reasonable time to the Indenture Trustee or the Securities
Administrator, as applicable, of the costs, expenses or liabilities likely to be incurred by it in the making of such investigation is, in the opinion of the Indenture Trustee or the Securities Administrator, as applicable, reasonably assured to the
Indenture Trustee or the Securities Administrator, as applicable, by the security afforded to it by the terms of this Indenture. The Indenture Trustee or the Securities Administrator may require reasonable indemnity against such expense or liability
as a condition to taking any such action. The reasonable expense of every such examination shall be paid by the Noteholders requesting the investigation. 
  

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 (m) Should the Indenture Trustee or the Securities Administrator deem the nature of any action required
on its part to be unclear, the Indenture Trustee or the Securities Administrator, respectively, may require prior to such action that it be provided by the Depositor with reasonable further instructions. 
  
 (n) The right of the Indenture Trustee or the Securities Administrator to
perform any discretionary act enumerated in this Indenture shall not be construed as a duty, and neither the Indenture Trustee nor the Securities Administrator shall be accountable for other than its negligence or willful misconduct in the
performance of any such act. 
  
 (o) Neither the Indenture Trustee
nor the Securities Administrator shall be required to give any bond or surety with respect to the execution of the trust created hereby or the powers granted hereunder. 
  
 (p) Neither the Indenture Trustee nor the Securities Administrator shall have any duty to conduct any affirmative
investigation as to the occurrence of any condition requiring the repurchase of any Mortgage Loan by the Seller pursuant to this Indenture or the Mortgage Loan Purchase Agreement, as applicable, or the eligibility of any Mortgage Loan for purposes
of this Indenture. 
  
 (q) The Indenture Trustee shall not be
deemed to have notice or actual knowledge of any Event of Default unless actually known to a Responsible Officer of the Indenture Trustee or written notice thereof (making reference to this Indenture or the Notes) is received by the Indenture
Trustee at the Corporate Trust Office. 
  
 Section VI.03
Individual Rights of Indenture Trustee. (a) The Indenture Trustee in its individual or any other capacity may become the owner or pledgee of Notes and may otherwise deal with the Issuer or its Affiliates with the same rights it would have if
it were not Indenture Trustee, subject to the requirements of the Trust Indenture Act. Any Note Registrar, co-registrar or co-paying agent may do the same with like rights. However, the Indenture Trustee must comply with Sections 6.11 and 6.12
hereof. 
  
 (b) The Securities Administrator in its individual or
any other capacity may become the owner or pledgee of Notes and may otherwise deal with the Issuer or its Affiliates with the same rights it would have if it were not Securities Administrator, subject to the requirements of the Trust Indenture Act.

  
 SectionVI.04 Indenture Trustee’s and Securities
Administrator’s Disclaimers. Neither the Indenture Trustee nor the Securities Administrator shall be responsible for and makes no representation as to the validity or adequacy of this Indenture, the Notes or the other Basic Documents,
neither shall be accountable for the Issuer’s use of the proceeds from the Notes, and 
  

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 neither shall be responsible for any statement of the Issuer in the Indenture or in any document issued in connection
with the sale of the Notes or in the Notes other than, with respect to the Indenture Trustee only, the Indenture Trustee’s certificate of authentication. 
  

Section VI.05 Notice of Event of Default. Subject to Section 5.01, the Indenture Trustee shall promptly mail to each Noteholder notice of the
Event of Default after a Responsible Officer of the Indenture Trustee obtains actual knowledge or written notice of such event, unless such Event of Default shall have been waived or cured. Except in the case of an Event of Default in payment of
principal of or interest on any Note, the Indenture Trustee may withhold the notice if and so long as a committee of its Responsible Officers in good faith determines that withholding the notice is in the interests of Noteholders. 
  
 Section VI.06 Reports by Indenture Trustee to Holders and Tax
Administration. The Securities Administrator shall deliver to each Noteholder such information as may be required and such other customary information as the Securities Administrator may determine and/or to be required by the Internal Revenue
Service or by a federal or state law or rules or regulations to enable such holder to prepare its federal and state income tax returns. 
  
 The Securities Administrator shall prepare and file (or cause to be prepared and filed), on behalf of the Owner Trustee, all tax returns (if any) and
information reports, tax elections and such annual or other reports of the Issuer as are necessary for preparation of tax returns and information reports as provided in Section 5.03 of the Trust Agreement, including without limitation Form 1099. All
tax returns and information reports shall be signed by the Owner Trustee as provided in Section 5.03 of the Trust Agreement. 
  
 Section VI.07 Compensation. The fees of the Indenture Trustee shall be paid by the Securities Administrator pursuant to a separate agreement
between the Indenture Trustee and Securities Administrator. In addition, the Indenture Trustee and the Securities Administrator will each be entitled to recover from the Payment Account pursuant to Section 4.05(a) of the Sale and Servicing Agreement
all reasonable out-of-pocket expenses, disbursements and advances and the expenses of the Indenture Trustee and the Securities Administrator, respectively, in connection with any breach of this Agreement or any claim or legal action (including any
pending or threatened claim or legal action) or otherwise incurred or made by the Indenture Trustee or the Securities Administrator, respectively, in the administration of the trusts hereunder (including the reasonable compensation, expenses and
disbursements of its counsel) except any such expense, disbursement or advance as may arise from its negligence or intentional misconduct or which is the responsibility of the Noteholders as provided herein. Such compensation and reimbursement
obligation shall not be limited by any provision of law in regard to the compensation of a trustee of an express trust. Additionally, each of the Indenture Trustee and the Securities Administrator and any director, officer, employee or agent of the
Indenture Trustee or the Securities Administrator shall be indemnified by the Trust and held harmless against any loss, liability or expense (including reasonable attorney’s fees and expenses) incurred in the administration of this Agreement
(other than its ordinary 
  

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 out of pocket expenses incurred hereunder) or in connection with any claim or legal action relating to (a) the Basic
Agreements or (b) the Notes, other than any loss, liability or expense incurred by reason of its negligence or intentional misconduct, or which is the responsibility of the Noteholders as provided herein. Such indemnity and agreement to hold
harmless shall survive the termination of this Agreement or the resignation or removal of the Indenture Trustee and the Securities Administrator, as applicable, hereunder. 
  
 The Issuer’s payment obligations to the Indenture Trustee and Securities Administrator pursuant to this Section 6.07
shall survive the discharge of this Indenture and the termination or resignation of the Indenture Trustee or Securities Administrator. When the Indenture Trustee or the Securities Administrator incurs expenses after the occurrence of an Event of
Default with respect to the Issuer, the expenses are intended to constitute expenses of administration under Title 11 of the United States Code or any other applicable federal or state bankruptcy, insolvency or similar law. 
  
 Section VI.08 Replacement of Indenture Trustee and the Securities
Administrator. No resignation or removal of the Indenture Trustee or the Securities Administrator and no appointment of a successor Indenture Trustee or successor Securities Administrator shall become effective until the acceptance of
appointment by the successor Indenture Trustee or successor Securities Administrator pursuant to this Section 6.08. The Indenture Trustee or the Securities Administrator may resign at any time by so notifying the Issuer. Holders of a majority of
Note Principal Balances of the Notes may remove either of the Indenture Trustee or the Securities Administrator by so notifying the Indenture Trustee or the Securities Administrator and may appoint a successor Indenture Trustee or successor
Securities Administrator. The Issuer shall remove the Indenture Trustee or the Securities Administrator, as applicable, if: 
  
 (i) the Indenture Trustee or the Securities Administrator fails to comply with Section 6.11 hereof; 
  
 (ii) the Indenture Trustee or the Securities Administrator
is adjudged a bankrupt or insolvent; 
  
 (iii) a
receiver or other public officer takes charge of the Indenture Trustee or the Securities Administrator or its property; or 
  
 (iv) the Indenture Trustee or the Securities Administrator otherwise becomes incapable of acting. 
  
 If the Indenture Trustee or the Securities Administrator resigns or is
removed or if a vacancy exists in the office of the Indenture Trustee or the Securities Administrator for any reason (the Indenture Trustee or the Securities Administrator in such event being referred to herein as the retiring Indenture Trustee or
the retiring Securities Administrator), the Issuer shall promptly appoint a successor Indenture Trustee or successor Securities Administrator. 
  

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 Each of a successor Indenture Trustee or successor Securities Administrator shall deliver a written
acceptance of its appointment to the retiring Indenture Trustee or the retiring Securities Administrator, as applicable, and to the Issuer. Thereupon, the resignation or removal of the retiring Indenture Trustee or the retiring Securities
Administrator shall become effective, and the successor Indenture Trustee or successor Securities Administrator shall have all the rights, powers and duties of the Indenture Trustee or the Securities Administrator, as applicable, under this
Indenture. The successor Indenture Trustee or successor Securities Administrator shall each mail a notice of its succession to Noteholders. The retiring Indenture Trustee or the retiring Securities Administrator shall promptly transfer all property
held by it as Indenture Trustee or Securities Administrator, as applicable, to the successor Indenture Trustee or successor Securities Administrator. 
  
 If a successor Indenture Trustee or successor Securities Administrator does not take office within 60 days after the retiring Indenture Trustee or the
retiring Securities Administrator, as applicable, resigns or is removed, the retiring Indenture Trustee or the retiring Securities Administrator, the Issuer or the Holders of a majority of Note Principal Balances of the Notes may petition any court
of competent jurisdiction for the appointment of a successor Indenture Trustee or successor Securities Administrator. 
  
 Notwithstanding the replacement of the Indenture Trustee or the Securities Administrator pursuant to this Section, the Issuer’s obligations under
Section 6.07 shall continue for the benefit of the retiring Indenture Trustee or the retiring Securities Administrator. 
  
 Section VI.09 Successor Indenture Trustee and Securities Administrator by Merger. If the Indenture Trustee or the Securities Administrator
consolidates with, merges or converts into, or transfers all or substantially all of its corporate trust business or assets to, another corporation or banking association, the resulting, surviving or transferee corporation, without any further act,
shall be the successor Indenture Trustee or successor Securities Administrator, as applicable; provided, that such corporation or banking association shall be otherwise qualified and eligible under Section 6.11 hereof. The Indenture Trustee and the
Securities Administrator shall each provide the Rating Agencies with prior written notice of any such transaction. 
  
 If at the time such successor or successors by merger, conversion or consolidation to the Indenture Trustee shall succeed to the trusts created by this
Indenture and any of the Notes shall have been authenticated but not delivered, any such successor to the Indenture Trustee may adopt the certificate of authentication of any predecessor trustee and deliver such Notes so authenticated; and if at
that time any of the Notes shall not have been authenticated, any successor to the Indenture Trustee may authenticate such Notes either in the name of any predecessor hereunder or in the name of the successor to the Indenture Trustee; and in all
such cases such certificates shall have the full force which it is in the Notes or in this Indenture provided that the certificate of the Indenture Trustee shall have. 
  

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 Section VI.10 Appointment of Co-Indenture Trustee or Separate Indenture Trustee. (a)
Notwithstanding any other provisions of this Indenture, at any time, for the purpose of meeting any legal requirement of any jurisdiction in which any part of the Trust Estate may at the time be located, the Indenture Trustee shall have the power
and may execute and deliver all instruments to appoint one or more Persons to act as a co-trustee or co-trustees, or separate trustee or separate trustees, of all or any part of the Trust Estate, and to vest in such Person or Persons, in such
capacity and for the benefit of the Noteholders, such title to the Trust Estate, or any part hereof, and, subject to the other provisions of this Section, such powers, duties, obligations, rights and trusts as the Indenture Trustee may consider
necessary or desirable. No co-trustee or separate trustee hereunder shall be required to meet the terms of eligibility as a successor trustee under Section 6.11 hereof. 
  
 (b) Every separate trustee and co-trustee shall, to the extent permitted by law, be appointed and act subject to the
following provisions and conditions: 
  
 (i) all
rights, powers, duties and obligations conferred or imposed upon the Indenture Trustee shall be conferred or imposed upon and exercised or performed by the Indenture Trustee and such separate trustee or co-trustee jointly (it being understood that
such separate trustee or co-trustee is not authorized to act separately without the Indenture Trustee joining in such act), except to the extent that under any law of any jurisdiction in which any particular act or acts are to be performed the
Indenture Trustee shall be incompetent or unqualified to perform such act or acts, in which event such rights, powers, duties and obligations (including the holding of title to the Trust Estate or any portion thereof in any such jurisdiction) shall
be exercised and performed singly by such separate trustee or co-trustee, but solely at the direction of the Indenture Trustee; 
  
 (ii) no trustee hereunder shall be personally liable by reason of any act or omission of any other trustee hereunder; and 
  
 (iii) the Indenture Trustee may at any time accept the
resignation of or remove any separate trustee or co-trustee. 
  
 (c) Any notice, request or other writing given to the Indenture Trustee shall be deemed to have been given to each of the then separate trustees and co-trustees, as effectively as if given to each of them. Every instrument appointing any
separate trustee or co-trustee shall refer to this Indenture and the conditions of this Article VI. Each separate trustee and co-trustee, upon its acceptance of the trusts conferred, shall be vested with the estates or property specified in its
instrument of appointment, either jointly with the Indenture Trustee or separately, as may be provided therein, subject to all the provisions of this Indenture, specifically including every provision of this Indenture relating to the conduct of,
affecting the liability of, or affording protection to, the Indenture Trustee. Every such instrument shall be filed with the Indenture Trustee. 
  

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 (d) Any separate trustee or co-trustee may at any time constitute the Indenture Trustee, its agent or
attorney-in-fact with full power and authority, to the extent not prohibited by law, to do any lawful act under or in respect of this Indenture on its behalf and in its name. If any separate trustee or co-trustee shall die, become incapable of
acting, resign or be removed, all of its estates, properties, rights, remedies and trusts shall vest in and be exercised by the Indenture Trustee, to the extent permitted by law, without the appointment of a new or successor trustee. 
  
 Section VI.11 Eligibility; Disqualification. The Indenture Trustee
shall at all times satisfy the requirements of TIA § 310(a). The Indenture Trustee and the Securities Administrator shall each have a combined capital and surplus of at least $50,000,000 as set forth in its most recent published annual report
of condition and it or its parent shall have a long-term debt rating of Baa3 or better by Moody’s and BBB or better by Standard & Poor’s. The Indenture Trustee shall comply with TIA § 310(b), including the optional provision
permitted by the second sentence of TIA § 310(b)(9); provided, however, that there shall be excluded from the operation of TIA § 310(b)(1) any indenture or indentures under which other securities of the Issuer are outstanding
if the requirements for such exclusion set forth in TIA § 310(b)(1) are met. 
  
 Section VI.12 Preferential Collection of Claims Against Issuer. The Indenture Trustee shall comply with TIA § 311(a), excluding any creditor relationship listed in TIA § 311(b). An Indenture Trustee
who has resigned or been removed shall be subject to TIA § 311(a) to the extent indicated. 
  
 Section VI.13 Representations and Warranties. The Indenture Trustee hereby represents that: 
  
 (i) The Indenture Trustee is duly organized and validly
existing as a national banking association in good standing under the laws of the United States with power and authority to own its properties and to conduct its business as such properties are currently owned and such business is presently
conducted; 
  
 (ii) The Indenture Trustee has the
power and authority to execute and deliver this Indenture and to carry out its terms; and the execution, delivery and performance of this Indenture have been duly authorized by the Indenture Trustee by all necessary corporate action; 
  
 (iii) The consummation of the transactions contemplated by
this Indenture and the fulfillment of the terms hereof do not conflict with, result in any breach of any of the terms and provisions of, or constitute (with or without notice or lapse of time) a default under, the articles of incorporation or bylaws
of the Indenture Trustee or any agreement or other instrument to which the Indenture Trustee is a party or by which it is bound; and 
  

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 (iv) There are no proceedings or investigations pending or to, the Indenture
Trustee’s knowledge, threatened before any court, regulatory body, administrative agency or other governmental instrumentality having jurisdiction over the Indenture Trustee or its properties: (A) asserting the invalidity of this Indenture (B)
seeking to prevent the consummation of any of the transactions contemplated by this Indenture or (C) seeking any determination or ruling that might materially and adversely affect the performance by the Indenture Trustee of its obligations under, or
the validity or enforceability of, this Indenture. 
  
 Section
VI.14 Directions to Indenture Trustee. The Indenture Trustee is hereby directed: 
  
 (a) to accept the pledge of the Mortgage Loans and hold the assets of the Trust Estate in trust for the Noteholders; 
  
 (b) to authenticate and deliver the Notes substantially in the form prescribed by Exhibits A-1 and A-2 to this Indenture in accordance with the terms of
this Indenture; and 
  
 (c) to take all other actions as shall be
required to be taken by the terms of this Indenture and the Sale and Servicing Agreement. 
  
 Section VI.15 The Agents. The provisions of this Indenture relating to the limitations of the Indenture Trustee’s liability and to its rights and protections shall inure also to the Paying Agent, Note
Registrar and Certificate Registrar. 
  
 Section VI.16 Other
Basic Documents. The Indenture Trustee is hereby authorized and directed to execute and deliver the Sale and Servicing Agreement and any other Basic Documents (other than this Indenture) naming it as a party. The Indenture Trustee shall not be
responsible for the sufficiency of the terms of any of the Basic Documents. In entering into and acting under the other Basic Documents, the Indenture Trustee shall be entitled to all of the rights, immunities, indemnities and other protections set
forth in this Article VI. 
  

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 ARTICLE VII 
  
 Noteholders’ Lists and Reports 
  
 Section VII.01 Issuer To Furnish Indenture Trustee Names and Addresses of Noteholders. The Issuer will furnish or cause to be furnished to the
Indenture Trustee (a) not more than five days after each Record Date, a list, in such form as the Indenture Trustee may reasonably require, of the names and addresses of the Holders of Notes as of such Record Date, (b) at such other times as the
Indenture Trustee may request in writing, within 30 days after receipt by the Issuer of any such request, a list of similar form and content as of a date not more than 10 days prior to the time such list is furnished; provided,
however, that so long as the Indenture Trustee is the Note Registrar, no such list shall be required to be furnished to the Indenture Trustee. 
  
 Section VII.02 Preservation of Information; Communications to Noteholders. (a) The Indenture Trustee shall preserve, in as current a form as is
reasonably practicable, the names and addresses of the Holders of Notes contained in the most recent list furnished to the Indenture Trustee as provided in Section 7.01 hereof and the names and addresses of Holders of Notes received by the Indenture
Trustee in its capacity as Note Registrar. The Indenture Trustee may destroy any list furnished to it as provided in such Section 7.01 upon receipt of a new list so furnished. 
  
 (b) Noteholders may communicate pursuant to TIA § 312(b) with other Noteholders with respect to their rights under this
Indenture or under the Notes. 
  
 (c) The Issuer, the Indenture
Trustee and the Note Registrar shall have the protection of TIA § 312(c). 
  
 Section VII.03 Statements to Noteholders. (a) With respect to each Payment Date, the Securities Administrator shall make available to each Noteholder and each Certificateholder, the Depositor, the Owner
Trustee, the Indenture Trustee, the Certificate Paying Agent and each Rating Agency, a statement setting forth the following information as to the Notes, to the extent applicable: 
  
 (i) the Note Principal Balance of each Class of Notes immediately prior to such Payment Date; 
  
 (ii) the Group I Available Funds, Group II Available Funds
and Net Monthly Excess Cash Flow, with respect to Loan Group I and Loan Group II, payable to each Class of Noteholders for such Payment Date, and the Basis Risk Shortfall Carry-Forward Amount on each Class of Notes for such Payment Date; 

 

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 (iii) the amount of such distribution to each Class of Notes applied to reduce the Note
Principal Balance thereof; 
  
 (iv) the amount of
such distribution to Holders of each Class of Notes allocable to interest and the aggregate amount of Accrued Note Interest with respect to each Class during the related Accrual Period; 
  
 (v) the Note Rates for each Class of Notes with respect to such Payment Date; 
  
 (vi) the Note Principal Balance of each Class of Notes
immediately after such Payment Date; 
  
 (vii)
the amount of such distribution to the Certificates; 
  
 (viii) the number and the aggregate Scheduled Principal Balance of the Mortgage Loans in each Loan Group and in the aggregate as of the end of the related Due Period; 
  
 (ix) the amount of Scheduled Principal and Principal Prepayments, (including but separately identifying the
principal amount of Principal Prepayments, Insurance Proceeds, the purchase price in connection with the purchase of Mortgage Loans, cash deposits in connection with substitutions of Mortgage Loans and Excess Liquidation Proceeds) and the number and
principal balance of Mortgage Loans purchased or substituted for during the relevant period and cumulatively since the Cut-off Date for each Loan Group and in the aggregate; 
  
 (x) the aggregate Note Principal Balance of each Class of Notes, after giving effect to the amounts
distributed on such Payment Date, separately identifying any reduction thereof due to Realized Losses other than pursuant to an actual distribution of principal and the aggregate Note Principal Balance of the Group I Notes, the Group II Notes and
the Notes in the aggregate after giving effect to the distribution of principal on such Payment Date; 
  
 (xi) information regarding any Mortgage Loan delinquencies as of the end of the related Prepayment Period, including the aggregate number
and aggregate Outstanding Principal Balance of Mortgage Loans (a) delinquent 30 to 59 days on a contractual basis, (b) 
  

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 delinquent 60 to 89 days on a contractual basis, and (c) delinquent 90 or more days on a contractual
basis, in each case as of the close of business on the last Business Day of the immediately preceding month, for each Loan Group and in the aggregate; 
  
 (xii) the Overcollateralization Increase Amount with respect to each Loan Group, Overcollateralization Target Amount with respect to each
Loan Group and Overcollateralized Amount with respect to each Loan Group, if any, in each case as the end of the related Payment Date; 
  
 (xiii) the amount of any Monthly Advances, Compensating Interest Payments and outstanding unreimbursed advances by the Master Servicer or
Servicer; 
  
 (xiv) the aggregate Realized Losses
with respect to the related Payment Date and cumulative Realized Losses since the Closing Date, for each Loan Group and in the aggregate; 
  
 (xv) with respect to each Mortgage Loan which incurred a Realized Loss during the related Prepayment Period, (i) the loan number, (ii) the
Scheduled Principal Balance of such Mortgage Loan as of the Cut-off Date, (ii) the Scheduled Principal Balance of such Mortgage Loan as of the beginning of the related Due Period, (iii) the Excess Liquidation Proceeds with respect to such Mortgage
Loan and (iv) the amount of the Realized Loss with respect to such Mortgage Loan; 
  
 (xvi) the number and aggregate Scheduled Principal Balance of Mortgage Loans repurchased by the Seller pursuant to the Mortgage Loan
Purchase Agreement for the related Payment Date and cumulatively since the Closing Date determined in the aggregate for each Loan Group and in the aggregate; 
  

(xvii) the number and aggregate Outstanding Principal Balance of all Mortgage Loans as to which the Mortgaged Property was REO Property
as of the end of the related Due Period for each Loan Group and in the aggregate; 
  
 (xviii) the book value (the sum of (A) the Outstanding Principal Balance of the Mortgage Loan, (B) accrued interest through the date of
foreclosure and (C) foreclosure expenses) of any REO Property; provided that, in the event that such information is not available to the Securities Administrator on the Payment Date, such information shall be furnished promptly after it becomes
available; 
  

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 (xix) the Average Loss Severity Percentage; 
  
 (xx) the number of Mortgage Loans in the foreclosure process
as of the end of the related Due Period and the aggregate Outstanding Principal Balance of such Mortgage Loans for each Loan Group and in the aggregate; 
  
 (xxi) the amount of any Interest Shortfalls less any Compensating Interest paid by the Servicer or Master Servicer to cover Interest
Shortfalls for such Payment Date; 
  
 (xxii) the
aggregate Scheduled Principal Balance of Mortgage Loans purchased by the Servicer pursuant to Section 3.21 of the Sale and Servicing Agreement for the related Payment Date and cumulatively since the Closing Date for each Loan Group and in the
aggregate; 
  
 (xxiii) the aggregate Scheduled
Principal Balance of defaulted Mortgage Loans sold by the Servicer pursuant to Section 3.13 of the Sale and Servicing Agreement or Section 4.03 of the HomeBanc Servicing Agreement for the related Payment Date and cumulatively since the Closing Date
for each Loan Group and in the aggregate; and 
  
 (xxiv) whether a Servicing Termination Trigger has occurred. 
  
 In addition, by January 31 of each calendar year following any year during which the Notes are outstanding, the Securities Administrator shall furnish a report to each Noteholder of record if so requested in writing at any time during each
calendar year as to the aggregate of amounts reported pursuant to (iii) and (iv) with respect to the Notes for such calendar year. 
  
 The Securities Administrator may conclusively rely upon the information provided by the Master Servicer pursuant to Section 3.01 of the Sale and Servicing
Agreement in its preparation of monthly statements to Noteholders. In addition, the Securities Administrator shall furnish statements to Certificateholders on each Payment Date in accordance with Section 5.04 of the Trust Agreement. 
  
 The Securities Administrator may make available each month, to any interested
party, the monthly statement to Noteholders via the Securities Administrator’s website initially located at “www.ctslink.com.” Assistance in using the website can be obtained by calling the Securities Administrator’s customer
service desk at (301) 815-6600. Parties that are unable to use the above distribution option are entitled to have a paper copy mailed to them via first class mail by calling the Securities Administrator’s customer service desk and indicating
such. The Securities Administrator shall have the right to change the way such reports are distributed in order to make such distribution more convenient and/or more accessible to the parties, and the Securities Administrator shall provide timely
and adequate notification to all parties regarding any such change. 
  

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 To the extent timely received from the Securities Administrator, the Indenture Trustee will also make
monthly statements available each month to Noteholders and Certificateholders via the Indenture Trustee’s internet website. The Indenture Trustee’s internet website will initially be located at
“https://trustinvestorreporting.usbank.com”. Assistance in using the Indenture Trustee’s website service can be obtained by calling the Indenture Trustee’s customer service desk at (800) 934-6802. 
  

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 ARTICLE VIII 
  
 Accounts, Disbursements and Releases 
  
 Section VIII.01 Collection of Money. Except as otherwise expressly provided herein, the Indenture Trustee may demand payment or delivery of, and
shall receive and collect, directly and without intervention or assistance of any fiscal agent or other intermediary, all money and other property payable to or receivable by the Indenture Trustee pursuant to this Indenture. The Indenture Trustee
shall apply all such money received by it as provided in this Indenture. Except as otherwise expressly provided in this Indenture, if any default occurs in the making of any payment or performance under any agreement or instrument that is part of
the Trust Estate, the Indenture Trustee may take such action as may be appropriate to enforce such payment or performance, including the institution and prosecution of appropriate Proceedings. Any such action shall be without prejudice to any right
to claim a Default or Event of Default under this Indenture and any right to proceed thereafter as provided in Article V. 
  
 SectionVIII.02 Reserved. 
  
 Section VIII.03 Officer’s Certificate. The Indenture Trustee shall receive at least seven Business Days’ notice when requested by the
Issuer to take any action pursuant to Section 8.05(a) hereof, accompanied by copies of any instruments to be executed, and the Indenture Trustee shall, except in the case of a repurchase of a Mortgage Loan pursuant to Sections 2.02 or 3.21 of the
Sale and Servicing Agreement, also require, as a condition to such action, an Officer’s Certificate, in form and substance satisfactory to the Indenture Trustee, stating the legal effect of any such action, outlining the steps required to
complete the same, and concluding that all conditions precedent to the taking of such action have been complied with. 
  
 Section VIII.04 Termination Upon Distribution to Noteholders. This Indenture and the respective obligations and responsibilities of the Issuer, the
Securities Administrator and the Indenture Trustee created hereby shall terminate upon the distribution to Noteholders, the Certificate Paying Agent on behalf of the Certificateholders, the Securities Administrator and the Indenture Trustee of all
amounts required to be distributed pursuant to Article III; provided, however, that in no event shall the trust created hereby continue beyond the expiration of 21 years from the death of the survivor of the descendants of Joseph P. Kennedy,
the late ambassador of the United States to the Court of St. James, living on the date hereof. 
  
 Section VIII.05 Release of Trust Estate. (a) Subject to the payment of its fees, expenses and indemnities, the Indenture Trustee may, and when required by the provisions of this Indenture shall, execute
instruments to release property from the lien of this Indenture, or convey the Indenture Trustee’s interest in the same, in a manner and under circumstances that are not inconsistent with the provisions of this Indenture, including for the
purposes of any repurchase by the 
  

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 Seller of a Mortgage Loan pursuant to Section 2.02 of the Sale and Servicing Agreement or any repurchase by the Servicer
of a Mortgage Loan pursuant to Section 3.21 of the Sale and Servicing Agreement; provided, however, any such conveyance shall be without recourse to the Indenture Trustee and without any obligation on its part to make any representations or
warranties with respect to such property released from the lien of this Indenture. No party relying upon an instrument executed by the Indenture Trustee as provided in Article VIII hereunder shall be bound to ascertain the Indenture Trustee’s
authority, inquire into the satisfaction of any conditions precedent, or see to the application of any monies. 
  
 (b) The Indenture Trustee shall, at such time as (i) there are no Notes Outstanding and (ii) all sums due to the Indenture Trustee pursuant to this
Indenture have been paid, release any remaining portion of the Trust Estate that secured the Notes from the lien of this Indenture. 
  
 (c) The Indenture Trustee shall release property from the lien of this Indenture pursuant to this Section 8.05 only upon receipt of a request from the
Issuer which, except in the case of a repurchase of a Mortgage Loan pursuant to Sections 2.02 or 3.21 of the Sale and Servicing Agreement, shall also be accompanied by an Officers’ Certificate and an Opinion of Counsel stating that all
applicable requirements have been satisfied. 
  
 Section VIII.06
Surrender of Notes Upon Final Payment. By acceptance of any Note, the Holder thereof agrees to surrender such Note to the Indenture Trustee promptly, prior to such Noteholder’s receipt of the final payment thereon. 
  
 Section VIII.07 Optional Redemption of the Notes. (a) The Holder of
the Certificates, or, if there is no single Holder, the Majority Certificateholder, shall have the option to redeem the Notes in whole, but not in part, on any Payment Date on or after the Payment Date on which the aggregate Scheduled Principal
Balance of the Mortgage Loans as of the end of the prior Due Period is less than or equal to 20% of the aggregate Scheduled Principal Balance of the Mortgage Loans as of the Cut-off Date. The aggregate redemption price for the Notes will be equal to
the unpaid Note Principal Balance of the Notes as of the Payment Date on which the proposed redemption will take place in accordance with the foregoing, together with accrued and unpaid interest thereon at the applicable Note Interest Rate through
such Payment Date (including any Basis Risk Shortfall Carry-Forward Amounts), plus an amount sufficient to pay in full all amounts owing to the Indenture Trustee, the Master Servicer and the Securities Administrator pursuant to any Basic Document
(which amounts shall be specified by such Person in writing upon request of the Issuer, the Master Servicer and the Securities Administrator, as applicable). 
  
 (b) In order to exercise the foregoing option, the Holder of the Certificates, or the Majority Certificateholder, as applicable, shall provide written
notice of its exercise of such option to the Indenture Trustee, the Securities Administrator, the Owner Trustee and the Master Servicer at least 15 days prior to its exercise. Following receipt of the notice, the Indenture Trustee shall provide

  

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 notice to the Noteholders of the final payment on the Notes. In addition, the Holder of the Certificates, or the Majority
Certificateholder, as applicable shall, not less than one Business Day prior to the proposed Payment Date on which such redemption is to be made, deposit the aggregate redemption price specified in (a) above with the Indenture Trustee, who shall
deposit the aggregate redemption price into the Payment Account and shall, on the Payment Date after receipt of the funds, apply such funds to make final payments of principal and interest on the Notes in accordance with the instructions of the
Securities Administrator and Section 3.05 hereof and payment in full to the Indenture Trustee, and this Indenture shall be discharged subject to the provisions of Section 4.10 hereof. If for any reason the amount deposited by the Holder of the
Certificates, or the Majority Certificateholder, as applicable is not sufficient to make such redemption or such redemption cannot be completed for any reason, the amount so deposited by the Holder of the Certificates, or the Majority
Certificateholder, as applicable with the Indenture Trustee shall be immediately returned to the Holder of the Certificates, or the Majority Certificateholder, as applicable in full and shall not be used for any other purpose or be deemed to be part
of the Trust Estate. 
  

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 ARTICLE IX 
  
 Supplemental Indentures 
  
 Section IX.01 Supplemental Indentures Without Consent of Noteholders. (a) Without the consent of the Holders of any Notes but with prior notice to
the Rating Agency, the Issuer, the Securities Administrator and the Indenture Trustee, when authorized by an Issuer Request in the case of the Securities Administrator and the Indenture Trustee, at any time and from time to time, may enter into one
or more indentures supplemental hereto (which shall conform to the provisions of the TIA as in force at the date of the execution thereof), in form satisfactory to the Indenture Trustee and the Securities Administrator, for any of the following
purposes: 
  
 (i) to correct or amplify the
description of any property at any time subject to the lien of this Indenture, or better to assure, convey and confirm unto the Indenture Trustee any property subject or required to be subjected to the lien of this Indenture, or to subject to the
lien of this Indenture additional property; 
  
 (ii) to evidence the succession, in compliance with the applicable provisions hereof, of another person to the Issuer, and the assumption by any such successor of the covenants of the Issuer herein and in the Notes contained; 
  
 (iii) to add to the covenants of the Issuer, for the benefit
of the Holders of the Notes, or to surrender any right or power herein conferred upon the Issuer; 
  
 (iv) to convey, transfer, assign, mortgage or pledge any property to or with the Indenture Trustee; 
  
 (v) to cure any ambiguity, to correct or supplement any
provision herein or in any supplemental indenture that may be inconsistent with any other provision herein or in any supplemental indenture; 
  
 (vi) to make any other provisions with respect to matters or questions arising under this Indenture or in any supplemental indenture;
provided, that such action shall not materially and adversely affect the interests of the Holders of the Notes; 
  
 (vii) to evidence and provide for the acceptance of the appointment hereunder by a successor trustee with respect to the Notes and to add
to or change any of the provisions of this Indenture as shall be necessary to facilitate the administration of the trusts hereunder by more than one trustee, pursuant to the requirements of Article VI hereof; or 
  

 60 

 (viii) to modify, eliminate or add to the provisions of this Indenture to such extent as
shall be necessary to effect the qualification of this Indenture under the TIA or under any similar federal statute hereafter enacted and to add to this Indenture such other provisions as may be expressly required by the TIA; 
  
 provided, however, that no such indenture supplements shall be entered into unless the
Indenture Trustee and the Securities Administrator shall have received an Opinion of Counsel not at the expense of the Indenture Trustee or the Securities Administrator as to the enforceability of any such indenture supplement against the Issuer and
to the effect that (i) such indenture supplement is authorized or permitted hereunder and (ii) entering into such indenture supplement will not result in a “significant modification” of the Notes under Treasury Regulation Section 1.1001-3
or adversely affect the status of the Notes as indebtedness for federal income tax purposes. 
  
 The Indenture Trustee and the Securities Administrator are hereby authorized to join in the execution of any such supplemental indenture and to make any further appropriate agreements and stipulations that may be
therein contained. 
  
 (b) The Issuer, the Securities
Administrator and the Indenture Trustee, when authorized by an Issuer Request in the case of the Securities Administrator and the Indenture Trustee and the Indenture Trustee, may, also without the consent of any of the Holders of the Notes and prior
notice to the Rating Agency, enter into an indenture or indentures supplemental hereto for the purpose of adding any provisions to, or changing in any manner or eliminating any of the provisions of, this Indenture or of modifying in any manner the
rights of the Holders of the Notes under this Indenture; provided, however, that such action as evidenced by an Opinion of Counsel, (i) is authorized or permitted by this Indenture, and shall not (ii) adversely affect in any material respect
the interests of any Noteholder and (iii) will not cause the Issuer to be subject to an entity level tax for federal income tax purposes. 
  
 Section IX.02 Supplemental Indentures With Consent of Noteholders. The Issuer, the Securities Administrator and the Indenture Trustee, when
authorized by an Issuer Request in the case of the Securities Administrator and the Indenture Trustee, also may, with prior notice to the Rating Agency and, with the consent of the Holders of not less than a majority of the Note Principal Balance of
each Class of Notes affected thereby, by Act (as defined in Section 10.03 hereof) of such Holders delivered to the Issuer, the Securities Administrator and the Indenture Trustee, enter into an indenture or indentures supplemental hereto for the
purpose of adding any provisions to, or changing in any manner or eliminating any of the provisions of, this Indenture or of modifying in any manner the rights of the Holders of the Notes under this Indenture; provided, however, that no such
supplemental indenture shall, without the consent of the Holder of each Note affected thereby: 
  
 (i) change the date of payment of any installment of principal of or interest on any Note, or reduce the principal amount thereof or the
interest rate thereon, change the provisions of this Indenture relating to the application of collections 
  

 61 

 on, or the proceeds of the sale of, the Trust Estate to payment of principal of or interest on the Notes,
or change any place of payment where, or the coin or currency in which, any Note or the interest thereon is payable, or impair the right to institute suit for the enforcement of the provisions of this Indenture requiring the application of funds
available therefor, as provided in Article V, to the payment of any such amount due on the Notes on or after the respective due dates thereof; 
  
 (ii) reduce the percentage of the Note Principal Balances of the Notes, the consent of the Holders of which is required for any such
supplemental indenture, or the consent of the Holders of which is required for any waiver of compliance with certain provisions of this Indenture or certain defaults hereunder and their consequences provided for in this Indenture; 
  
 (iii) modify or alter the provisions of the proviso to the
definition of the term “Outstanding” or modify or alter the exception in the definition of the term “Holder”; 
  
 (iv) reduce the percentage of the Note Principal Balances of the Notes required to direct the Indenture Trustee to direct the Issuer to
sell or liquidate the Trust Estate pursuant to Section 5.04 hereof; 
  
 (v) modify any provision of this Section 9.02 except to increase any percentage specified herein or to provide that certain additional provisions of this Indenture or the Basic Documents cannot be modified or waived
without the consent of the Holder of each Note affected thereby; 
  
 (vi) modify any of the provisions of this Indenture in such manner as to affect the calculation of the amount of any payment of interest or principal due on any Note on any Payment Date (including the calculation of
any of the individual components of such calculation); or 
  
 (vii) permit the creation of any lien ranking prior to or on a parity with the lien of this Indenture with respect to any part of the Trust Estate or, except as otherwise permitted or contemplated herein, terminate
the lien of this Indenture on any property at any time subject hereto or deprive the Holder of any Note of the security provided by the lien of this Indenture; 
  

and provided, further, that such action shall not, as evidenced by an Opinion of Counsel, cause the Issuer to be subject to an entity level tax. 
  

 62 

 Any such action shall not adversely affect in any material respect the interest of any Holder (other than
a Holder who shall consent to such supplemental indenture) as evidenced by an Opinion of Counsel (provided by, and at the expense of, the Person requesting such supplemental indenture) delivered to the Indenture Trustee and the Securities
Administrator. 
  
 It shall not be necessary for any Act of
Noteholders under this Section 9.02 to approve the particular form of any proposed supplemental indenture, but it shall be sufficient if such Act shall approve the substance thereof. 
  
 Promptly after the execution by the Issuer, the Securities Administrator and the Indenture Trustee of any supplemental
indenture pursuant to this Section 9.02, the Indenture Trustee shall mail to the Holders of the Notes to which such amendment or supplemental indenture relates a notice setting forth in general terms the substance of such supplemental indenture. Any
failure of the Indenture Trustee to mail such notice, or any defect therein, shall not, however, in any way impair or affect the validity of any such supplemental indenture. 
  
 Section IX.03 Execution of Supplemental Indentures. In executing, or permitting the additional trusts created by, any
supplemental indenture permitted by this Article IX or the modification thereby of the trusts created by this Indenture, the Indenture Trustee and the Securities Administrator shall be entitled to receive, and subject to Sections 6.01 and 6.02
hereof, shall be fully protected in relying upon, an Opinion of Counsel not at the expense of the Indenture Trustee or the Securities Administrator stating that the execution of such supplemental indenture is authorized or permitted by this
Indenture. The Indenture Trustee and the Securities Administrator each may, but shall not be obligated to, enter into any such supplemental indenture that affects the Indenture Trustee’s or the Securities Administrator’s own rights,
duties, liabilities or immunities under this Indenture or otherwise. 
  
 Section IX.04 Effect of Supplemental Indenture. Upon the execution of any supplemental indenture pursuant to the provisions hereof, this Indenture shall be and shall be deemed to be modified and amended in accordance therewith with
respect to the Notes affected thereby, and the respective rights, limitations of rights, obligations, duties, liabilities and immunities under this Indenture of the Indenture Trustee, the Securities Administrator, the Issuer and the Holders of the
Notes shall thereafter be determined, exercised and enforced hereunder subject in all respects to such modifications and amendments, and all the terms and conditions of any such supplemental indenture shall be and be deemed to be part of the terms
and conditions of this Indenture for any and all purposes. 
  
 Section IX.05 Conformity with Trust Indenture Act. Every amendment of this Indenture and every supplemental indenture executed pursuant to this Article IX shall conform to the requirements of the Trust Indenture Act as then in effect
so long as this Indenture shall then be qualified under the Trust Indenture Act. 
  

 63 

 Section IX.06 Reference in Notes to Supplemental Indentures. Notes authenticated and delivered
after the execution of any supplemental indenture pursuant to this Article IX may, and if required by the Indenture Trustee shall, bear a notation in form approved by the Indenture Trustee as to any matter provided for in such supplemental
indenture. If the Issuer or the Indenture Trustee shall so determine, new Notes so modified as to conform, in the opinion of the Indenture Trustee and the Issuer, to any such supplemental indenture may be prepared and executed by the Issuer and
authenticated and delivered by the Indenture Trustee in exchange for Outstanding Notes. 
  

 64 

 ARTICLE X 
  
 Miscellaneous 
  
 Section X.01 Compliance Certificates and Opinions, etc. (a) Upon any application or request by the Issuer to the Indenture Trustee or the
Securities Administrator to take any action under any provision of this Indenture, the Issuer shall furnish to the Indenture Trustee and the Securities Administrator (i) an Officer’s Certificate stating that all conditions precedent, if any,
provided for in this Indenture relating to the proposed action have been complied with and (ii) an Opinion of Counsel stating that in the opinion of such counsel all such conditions precedent, if any, have been complied with, except that, in the
case of any such application or request as to which the furnishing of such documents is specifically required by any provision of this Indenture, no additional certificate or opinion need be furnished. 
  
 Every certificate or opinion with respect to compliance with a condition or
covenant provided for in this Indenture shall include: 
  
 (1) a statement that each signatory of such certificate or opinion has read or has caused to be read such covenant or condition and the definitions herein relating thereto; 
  
 (2) a brief statement as to the nature and scope of the examination or investigation upon which the
statements or opinions contained in such certificate or opinion are based; 
  
 (3) a statement that, in the opinion of each such signatory, such signatory has made such examination or investigation as is necessary to enable such signatory to express an informed opinion as to whether or not such
covenant or condition has been complied with; 
  
 (4) a statement as to whether, in the opinion of each such signatory, such condition or covenant has been complied with; and 
  
 (5) if the signatory of such certificate or opinion is required to be Independent, the statement required by the definition of the term
“Independent Certificate”. 
  
 (b) (i)
Prior to the deposit of any Collateral or other property or securities with the Indenture Trustee that is to be made the basis for the release of any property or securities subject to the lien of this Indenture, the Issuer shall, in addition to any
obligation imposed in Section 10.01 (a) or elsewhere in this Indenture, furnish to the Indenture Trustee an Officer’s Certificate certifying or stating the opinion of each person signing such certificate as to the fair value (within 90 days
prior to such deposit) to the Issuer of the Collateral or other property or securities to be so deposited and a report from a nationally recognized accounting firm verifying such value. 
  

 65 

 (ii) Whenever the Issuer is required to furnish to the Indenture Trustee an
Officer’s Certificate certifying or stating the opinion of any signer thereof as to the matters described in clause (b)(i) above, the Issuer shall also deliver to the Indenture Trustee an Independent Certificate from a nationally recognized
accounting firm as to the same matters, if the fair value of the securities to be so deposited and of all other such securities made the basis of any such withdrawal or release since the commencement of the then current fiscal year of the Issuer, as
set forth in the certificates delivered pursuant to clause (i) above and this clause (ii), is 10% or more of the Note Principal Balances of the Notes, but such a certificate need not be furnished with respect to any securities so deposited, if the
fair value thereof as set forth in the related Officer’s Certificate is less than $25,000 or less than one percent of the Note Principal Balances of the Notes. 
  
 (iii) Whenever any property or securities are to be released from the lien of this Indenture, the Issuer
shall also furnish to the Indenture Trustee an Officer’s Certificate certifying or stating the opinion of each person signing such certificate as to the fair value (within 90 days prior to such release) of the property or securities proposed to
be released and stating that in the opinion of such person the proposed release will not impair the security under this Indenture in contravention of the provisions hereof. 
  
 (iv) Whenever the Issuer is required to furnish to the Indenture Trustee an Officer’s Certificate
certifying or stating the opinion of any signer thereof as to the matters described in clause (iii) above, the Issuer shall also furnish to the Indenture Trustee an Independent Certificate as to the same matters if the fair value of the property or
securities and of all other property or securities released from the lien of this Indenture since the commencement of the then-current calendar year, as set forth in the certificates required by clause (iii) above and this clause (iv), equals 10% or
more of the Note Principal Balances of the Notes, but such certificate need not be furnished in the case of any release of property or securities if the fair value thereof as set forth in the related Officer’s Certificate is less than $25,000
or less than one percent of the then Note Principal Balances of the Notes. 
  
 Section X.02 Form of Documents Delivered to Indenture Trustee. In any case where several matters are required to be certified by, or covered by an opinion of, any specified Person, it is not necessary that all
such matters be certified by, or covered by the opinion of, only one such Person, or that they be so certified or covered by only one document, but one such Person may certify or give an opinion with respect to some matters and one or more other
such Persons as to other matters, and any such Person may certify or give an opinion as to such matters in one or several documents. 
  

 66 

 Any certificate or opinion of an Authorized Officer of the Issuer may be based, insofar as it relates to
legal matters, upon a certificate or opinion of, or representations by, counsel, unless such officer knows, or in the exercise of reasonable care should know, that the certificate or opinion or representations with respect to the matters upon which
his certificate or opinion is based are erroneous. Any such certificate of an Authorized Officer or Opinion of Counsel may be based, insofar as it relates to factual matters, upon a certificate or opinion of, or representations by, an officer or
officers of the Seller or the Issuer, stating that the information with respect to such factual matters is in the possession of the Seller or the Issuer, unless such counsel knows, or in the exercise of reasonable care should know, that the
certificate or opinion or representations with respect to such matters are erroneous. 
  
 Where any Person is required to make, give or execute two or more applications, requests, consents, certificates, statements, opinions or other instruments under this Indenture, they may, but need not, be consolidated
and form one instrument. 
  
 Whenever in this Indenture, in
connection with any application or certificate or report to the Indenture Trustee, it is provided that the Issuer shall deliver any document as a condition of the granting of such application, or as evidence of the Issuer’s compliance with any
term hereof, it is intended that the truth and accuracy, at the time of the granting of such application or at the effective date of such certificate or report (as the case may be), of the facts and opinions stated in such document shall in such
case be conditions precedent to the right of the Issuer to have such application granted or to the sufficiency of such certificate or report. The foregoing shall not, however, be construed to affect the Indenture Trustee’s right to rely upon
the truth and accuracy of any statement or opinion contained in any such document as provided in Article VI. 
  
 Section X.03 Acts of Noteholders. (a) Any request, demand, authorization, direction, notice, consent, waiver or other action provided by this
Indenture to be given or taken by Noteholders may be embodied in and evidenced by one or more instruments of substantially similar tenor signed by such Noteholders in person or by agents duly appointed in writing; and except as herein otherwise
expressly provided, such action shall become effective when such instrument or instruments are delivered to the Indenture Trustee, and, where it is hereby expressly required, to the Issuer. Such instrument or instruments (and the action embodied
therein and evidenced thereby) are herein sometimes referred to as the “Act” of the Noteholders signing such instrument or instruments. Proof of execution of any such instrument or of a writing appointing any such agent shall be sufficient
for any purpose of this Indenture and (subject to Section 6.01 hereof) conclusive in favor of the Indenture Trustee and the Issuer, if made in the manner provided in this Section 10.03 hereof. 
  
 (b) The fact and date of the execution by any person of any such instrument
or writing may be proved in any manner that the Indenture Trustee deems sufficient. 
  
 (c) The ownership of Notes shall be proved by the Note Registrar. 
  

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 (d) Any request, demand, authorization, direction, notice, consent, waiver or other action by the Holder
of any Notes shall bind the Holder of every Note issued upon the registration thereof or in exchange therefor or in lieu thereof, in respect of anything done, omitted or suffered to be done by the Indenture Trustee or the Issuer in reliance thereon,
whether or not notation of such action is made upon such Note. 
  
 Section X.04 Notices etc., to Indenture Trustee, Securities Administrator, Issuer and Rating Agencies. Any request, demand, authorization, direction, notice, consent, waiver or act of Noteholders or other documents provided or
permitted by this Indenture shall be in writing and if such request, demand, authorization, direction, notice, consent, waiver or act of Noteholders is to be made upon, given or furnished to or filed with: 
  
 (i) the Indenture Trustee by any Noteholder or by the Issuer
shall be sufficient for every purpose hereunder if in writing and made, given, furnished or filed to or with the Indenture Trustee at the Corporate Trust Office. The Indenture Trustee shall promptly transmit any notice received by it from the
Noteholders to the Issuer; 
  
 (ii) the
Securities Administrator by any Noteholder or by the Issuer shall be sufficient for every purpose hereunder if made, given, furnished or filed in writing to or with the Securities Administrator at Wells Fargo Bank, National Association, P.O. Box 98,
Columbia Maryland 21046 (or, in the case of overnight deliveries, 9062 Old Annapolis Road, Columbia, Maryland 21045) (Attention: Corporate Trust Services - HomeBanc 2004-1), facsimile no.: (410) 715-2380, or such other address as may hereafter be
furnished to the other parties hereto in writing. The Securities Administrator shall promptly transmit any notice received by it from the Noteholders to the Issuer 
  
 (iii) the Issuer by the Indenture Trustee or by any Noteholder shall be sufficient for every purpose
hereunder if in writing and mailed first-class, postage prepaid to the Issuer addressed to: HomeBanc Mortgage Trust 2004-1, in care of Wilmington Trust Company, Rodney Square North, 1100 North Market Street, Wilmington, Delaware 19990-0001,
Attention: Corporate Trust Administration, or at any other address previously furnished in writing to the Indenture Trustee by the Issuer. The Issuer shall promptly transmit any notice received by it from the Noteholders to the Indenture Trustee.

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

 68 

 Section X.05 Notices to Noteholders; Waiver. Where this Indenture provides for notice to
Noteholders of any event, such notice shall be sufficiently given (unless otherwise herein expressly provided) if in writing and mailed, first-class, postage prepaid to each Noteholder affected by such event, at such Person’s address as it
appears on the Note Register, not later than the latest date, and not earlier than the earliest date, prescribed for the giving of such notice. In any case where notice to Noteholders is given by mail, neither the failure to mail such notice nor any
defect in any notice so mailed to any particular Noteholder shall affect the sufficiency of such notice with respect to other Noteholders, and any notice that is mailed in the manner herein provided shall conclusively be presumed to have been duly
given regardless of whether such notice is in fact actually received. 
  
 Where this Indenture provides for notice in any manner, such notice may be waived in writing by any Person entitled to receive such notice, either before or after the event, and such waiver shall be the equivalent of such notice. Waivers of
notice by Noteholders shall be filed with the Indenture Trustee but such filing shall not be a condition precedent to the validity of any action taken in reliance upon such a waiver. 
  
 In case, by reason of the suspension of regular mail service as a result of a strike, work stoppage or similar activity, it
shall be impractical to mail notice of any event to Noteholders when such notice is required to be given pursuant to any provision of this Indenture, then any manner of giving such notice as shall be satisfactory to the Indenture Trustee shall be
deemed to be a sufficient giving of such notice. 
  
 Where this
Indenture provides for notice to the Rating Agencies, failure to give such notice shall not affect any other rights or obligations created hereunder, and shall not under any circumstance constitute an Event of Default. 
  
 Section X.06 Conflict with Trust Indenture Act. If any provision
hereof limits, qualifies or conflicts with another provision hereof that is required to be included in this Indenture by any of the provisions of the Trust Indenture Act, such required provision shall control. 
  
 The provisions of TIA §§ 310 through 317 that impose duties on any
Person (including the provisions automatically deemed included herein unless expressly excluded by this Indenture) are a part of and govern this Indenture, whether or not physically contained herein. 
  
 Section X.07 Effect of Headings. The Article and Section headings
herein are for convenience only and shall not affect the construction hereof. 
  
 Section X.08 Successors and Assigns. All covenants and agreements in this Indenture and the Notes by the Issuer shall bind its successors and assigns, whether so expressed or not. All agreements of the
Indenture Trustee in this Indenture shall bind its successors, co-trustees and agents. 
  

 69 

 Section X.09 Separability. In case any provision in this Indenture or in the Notes shall be
invalid, illegal or unenforceable, the validity, legality, and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. 
  

Section X.10 [Reserved]. 
  
 Section X.11 Legal Holidays. In any case where the date on which any payment is due shall not be a Business Day, then (notwithstanding any other
provision of the Notes or this Indenture) payment need not be made on such date, but may be made on the next succeeding Business Day with the same force and effect as if made on the date on which nominally due, and no interest shall accrue for the
period from and after any such nominal date. 
  
 Section X.12
GOVERNING LAW. THIS INDENTURE SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED
IN ACCORDANCE WITH SUCH LAWS. 
  
 Section X.13
Counterparts. This Indenture may be executed in any number of counterparts, each of which so executed shall be deemed to be an original, but all such counterparts shall together constitute but one and the same instrument. 
  
 Section X.14 Recording of Indenture. If this Indenture is subject to
recording in any appropriate public recording offices, such recording is to be effected by the Issuer and at its expense accompanied by an Opinion of Counsel at its expense (which may be counsel to the Issuer, the Indenture Trustee or any other
counsel reasonably acceptable to the Indenture Trustee) to the effect that such recording is necessary either for the protection of the Noteholders or any other Person secured hereunder or for the enforcement of any right or remedy granted to the
Indenture Trustee under this Indenture. 
  
 Section X.15 Issuer
Obligation. No recourse may be taken, directly or indirectly, with respect to the obligations of the Issuer, the Securities Administrator, the Owner Trustee or the Indenture Trustee on the Notes or under this Indenture or any certificate or
other writing delivered in connection herewith or therewith, against (i) the Indenture Trustee or the Owner Trustee in its individual capacity, (ii) any owner of a beneficial interest in the Issuer or (iii) any partner, owner, beneficiary, agent,
officer, director, employee or agent of the Indenture Trustee or the Owner Trustee in its individual capacity, any holder of a beneficial interest in the Issuer, the Securities Administrator, the Owner Trustee or the Indenture Trustee or of any
successor or assign of the Indenture Trustee or the Owner Trustee in its individual capacity, except as any such Person may have expressly agreed (it being understood that the Indenture Trustee and the Owner Trustee have no such obligations in their

  

 70 

 individual capacity) and except that any such partner, owner or beneficiary shall be fully liable, to the extent provided
by applicable law, for any unpaid consideration for stock, unpaid capital contribution or failure to pay any installment or call owing to such entity. For all purposes of this Indenture, in the performance of any duties or obligations of the Issuer
hereunder, the Owner Trustee shall be subject to, and entitled to the benefits of, the terms and provisions of Article VI, VII and VIII of the Trust Agreement. 
  

Section X.16 No Petition. The Indenture Trustee and the Securities Administrator, by entering into this Indenture, each Noteholder, by accepting
a Note, and each Certificateholder, by accepting a Certificate, hereby covenant and agree that they will not at any time prior to one year from the date of termination hereof, institute against the Depositor or the Issuer, or join in any institution
against the Depositor or the Issuer of, any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings, or other proceedings under any United States federal or state bankruptcy or similar law in connection with any obligations
relating to the Notes, this Indenture or any of the Basic Documents; provided however, that nothing herein shall prohibit the Indenture Trustee from filing proofs of claim in any proceeding. 
  
 Section X.17 Inspection. The Issuer agrees that, at its expense, on
reasonable prior notice, it shall permit any representative of the Indenture Trustee or the Securities Administrator, during the Issuer’s normal business hours, to examine all the books of account, records, reports and other papers of the
Issuer, to make copies and extracts therefrom, to cause such books to be audited by Independent certified public accountants, and to discuss the Issuer’s affairs, finances and accounts with the Issuer’s officers, employees, and Independent
certified public accountants, all at such reasonable times and as often as may be reasonably requested. The Indenture Trustee shall cause its representatives to hold in confidence all such information except to the extent disclosure may be required
by law, regulation, judicial process or made to the Indenture Trustee’s auditors, regulators, attorneys or other governmental authorities and except to the extent that the Indenture Trustee or the Securities Administrator may reasonably
determine that such disclosure is consistent with its obligations hereunder. 
  

 71 

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

			
	 HOMEBANC MORTGAGE TRUST

	 2004-1, as Issuer

	 BY: Wilmington Trust Company, not in its
 individual capacity but solely as Owner
 Trustee

		
	 By:
	 	 /s/ Heather L. Maier

	 Name:
	 	 Heather L. Maier

	 Title:
	 	 Financial Services Officer

	
	 U.S. BANK NATIONAL ASSOCIATION,
 as Indenture Trustee

		
	 By:
	 	 /s/ Vaneta I. Bernard

	 Name:
	 	 Vaneta I. Bernard

	 Title:
	 	 Vice President

	
	 WELLS FARGO BANK, NATIONAL
 ASSOCIATION, as Securities Administrator

		
	 By:
	 	 /s/ Stacey Taylor

	 Name:
	 	 Stacey Taylor

	 Title:
	 	 Assistance Vice President

			
	 STATE OF MASSACHUSETTES
	 	 )

	 	 	 ) ss.:

	 COUNTY OF SUFFOLK
	 	 )

  
 On this 30th day of
July 2004, before me personally appeared Vaneta Bernard to me known, who being by me duly sworn, did depose and say, that s/he is a Vice President of the Indenture Trustee, one of the corporations described in and which executed the above
instrument; and that he signed his name thereto by like order. 
  

	
	 Notary Public

	
	 
	 NOTARY PUBLIC

  
 [NOTARIAL SEAL] 

			
	 STATE OF DELAWARE
	 	 )

	 	 	 ) ss.:

	 COUNTY OF NEW CASTLE
	 	 )

  
 On this 30th day of
July 2004, before me personally appeared Heather L. Maier to me known, who being by me duly sworn, did depose and say, that s/he is a Financial Services Officer of the Owner Trustee, one of the entities described in and which executed the above
instrument; and that she signed her name thereto by like order. 
  

	
	 Notary Public

	
	 
	 NOTARY PUBLIC

  
 [NOTARIAL SEAL] 

			
	 STATE OF MARYLAND
	 	 )

	 	 	 ) ss.:

	 COUNTY OF HOWARD
	 	 )

  
 On this 30th day of
July 2004 before me, a notary public in and for said State, personally appeared Stacey Taylor, known to me to be an Assistant Vice President of Wells Fargo Bank, National Association, the entity that executed the within instrument, and also known to
me to be the person who executed it on behalf of said entity, and acknowledged to me that such entity executed the within instrument. 
  
 IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year in this certificate first above written. 
  

	
	 Notary Public

  
 [Notarial Seal] 

 EXHIBIT A-1 
  
 FORM OF CLASS [I][II]-A NOTES 
  
 UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE INDENTURE TRUSTEE OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO
SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN. 
  
 THE HOLDER OF THIS NOTE OR BENEFICIAL OWNER OF ANY INTEREST HEREIN
WILL BE DEEMED TO REPRESENT TO ONE OF THE REPRESENTATIONS CONTAINED IN SECTION 4.15 OF THE INDENTURE. 
  
 THIS NOTE IS A NON-RECOURSE OBLIGATION OF THE ISSUER, AND IS LIMITED IN RIGHT OF PAYMENT TO AMOUNTS AVAILABLE FROM THE TRUST AS PROVIDED IN THE INDENTURE REFERRED TO BELOW. THE ISSUER IS NOT OTHERWISE PERSONALLY
LIABLE FOR PAYMENTS ON THIS NOTE. 
  
 PRINCIPAL OF THIS NOTE IS PAYABLE OVER TIME
AS SET FORTH HEREIN. ACCORDINGLY, THE OUTSTANDING PRINCIPAL OF THIS NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF. 
  

 A–1–1 

 HOMEBANC MORTGAGE TRUST 2004-1 
 MORTGAGE-BACKED NOTES 
 CLASS [I][II]-A 
  

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

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

		
	 PERCENTAGE INTEREST: 100%
	 	 CUSIP NO. [             ]

  
 HomeBanc Mortgage
Trust 2004-1 (the “Issuer”), a Delaware statutory trust, for value received, hereby promises to pay to Cede & Co. or registered assigns, the principal sum of
($                     ) in monthly installments on the twenty-fifth day of each month or, if such day is not a Business Day, the next
succeeding Business Day (each a “Payment Date”), commencing in August 2004 and ending on or before the Payment Date occurring in August 2029 (the “Final Scheduled Payment Date”) and to pay interest on the Note Principal Balance
of this Note (this “Note”) outstanding from time to time as provided below. 
  
 This Note is one of a duly authorized issue of the Issuer’s Mortgage-Backed Notes, Series 2004-1 (the “Notes”), issued under an Indenture dated as of July 30, 2004 (the “Indenture”), among the
Issuer, Wells Fargo Bank, National Association (the “Securities Administrator”) and U.S. Bank National Association, as indenture trustee (the “Indenture Trustee”, which term includes any successor Indenture Trustee under the
Indenture), to which Indenture and all indentures supplemental thereto reference is hereby made for a statement of the respective rights thereunder of the Issuer, the Indenture Trustee, and the Holders of the Notes and the terms upon which the Notes
are to be authenticated and delivered. All terms used in this Note which are defined in the Indenture shall have the meanings assigned to them in the Indenture. 
  

Payments of principal and interest on this Note will be made on each Payment Date to the Noteholder of record as of the related Record Date. The
“Note Principal Balance” of a Note as of any date of determination is equal to the initial Note Principal Balance thereof, reduced by the aggregate of all amounts previously paid with respect to such Note on account of principal and the
aggregate amount of cumulative Realized Losses allocated to such Note on all prior Payment Dates. 
  
 The principal of, and interest on, this Note are due and payable as described in the Indenture, in such coin or currency of the United States of America
as at the time of payment is legal tender for payment of public and private debts. All payments made by the Issuer with respect to this Note shall be equal to this Note’s pro rata share of the aggregate payments on all Class [I][II]-A Notes as
described above, and shall be applied as between interest and principal as provided in the Indenture. 
  

 A–1–2 

 All principal and interest accrued on the Notes, if not previously paid, will become finally due and
payable at the Final Scheduled Payment Date. 
  
 The Notes are
subject to redemption in whole, but not in part, by the Holder of the Certificates, or, if there is no single Holder, the Majority Certificateholder, on any Payment Date on or after the Payment Date on which the aggregate Scheduled Principal Balance
of the Mortgage Loans as of the end of the prior Due Period is less than or equal to 20% of the aggregate Scheduled Principal Balance of the Mortgage Loans as of the Cut-off Date. 
  
 The Issuer shall not be liable upon the indebtedness evidenced by the Notes except to the extent of amounts available from
the Trust Estate which constitutes security for the payment of the Notes. The assets included in the Trust Estate will be the sole source of payments on the Class [I][II]-A Notes, and each Holder hereof, by its acceptance of this Note, agrees that
(i) such Note will be limited in right of payment to amounts available from the Trust Estate as provided in the Indenture and (ii) such Holder shall have no recourse to the Issuer, the Securities Administrator, the Owner Trustee, the Indenture
Trustee, the Depositor, EMC Mortgage Corporation, the Master Servicer, the Servicer, the Special Servicer or any of their respective affiliates, or to the assets of any of the foregoing entities, except the assets of the Issuer pledged to secure the
[I][II]-A Notes pursuant to the Indenture and the rights conveyed by the Issuer under the Indenture. 
  
 Any payment of principal or interest payable on this Note which is punctually paid on the applicable Payment Date shall be paid to the Person in whose
name such Note is registered at the close of business on the Record Date for such Payment Date by check mailed to such person’s address as it appears in the Note Register on such Record Date, except for the final installment of principal and
interest payable with respect to such Note, which shall be payable as provided below. Notwithstanding the foregoing, upon written request with appropriate instructions by the Holder of this Note delivered to the Indenture Trustee at least five
Business Days prior to the Record Date, any payment of principal or interest, other than the final installment of principal or interest, shall be made by wire transfer to an account in the United States designated by such Holder. All scheduled
reductions in the principal amount of a Note (or one or more predecessor Notes) effected by payments of principal made on any Payment Date shall be binding upon all Holders of this Note and of any note issued upon the registration of transfer
thereof or in exchange therefor or in lieu thereof, whether or not such payment is noted on such Note. The final payment of this Note shall be payable upon presentation and surrender thereof on or after the Payment Date thereof at the office
designated by the Indenture Trustee or the office or agency of the Issuer maintained by it for such purpose pursuant to Section 3.02 of the Indenture. 
  
 Subject to the foregoing provisions, each Note delivered under the Indenture, upon registration of transfer of or in exchange for or in lieu of any other
Note shall carry the right to unpaid principal and interest that were carried by such other Note. 
  
 If an Event of Default as defined in the Indenture shall occur and be continuing with respect to the Notes, the Notes may become or be declared due and
payable in the manner and with the effect provided in the Indenture. If any such acceleration of maturity occurs prior to the payment of the entire unpaid Note Principal Balance of the Notes, the amount payable to the Holder of this Note will be
equal to the sum of the unpaid Note Principal Balance of the Notes, together with accrued and 
  

 A–1–3 

 unpaid interest thereon as described in the Indenture. The Indenture provides that, notwithstanding the acceleration of
the maturity of the Notes, under certain circumstances specified therein, all amounts collected as proceeds of the Trust Estate securing the Notes or otherwise shall continue to be applied to payments of principal of and interest on the Notes as if
they had not been declared due and payable. 
  
 The Holder of this
Note or Beneficial Owner of any interest herein is deemed to represent that either (1) it is not acquiring the Note with Plan Assets or (2) (A) the acquisition, holding and transfer of a Note will not give rise to a nonexempt prohibited transaction
under Section 406 of ERISA or Section 4975 of the Code and (B) the Notes are rated investment grade or better and such person believes that the Notes are properly treated as indebtedness without substantial equity features for purposes of the DOL
Regulations, and agrees to so treat the Notes. Alternatively, regardless of the rating of the Notes, such person may provide the Indenture Trustee and the Owner Trustee with an Opinion of Counsel, which Opinion of Counsel will not be at the expense
of the Issuer, the Seller, any Underwriter, the Owner Trustee, the Indenture Trustee, the Securities Administrator, the Master Servicer, the Special Servicer or any successor servicer which opines that the acquisition, holding and transfer of such
Note or interest therein is permissible under applicable law, will not constitute or result in a non-exempt prohibited transaction under ERISA or Section 4975 of the Code and will not subject the Issuer, the Seller, the Depositor, any Underwriter,
the Owner Trustee, the Indenture Trustee, the Master Servicer, the Securities Administrator, the Servicer or the Special Servicer to any obligation in addition to those undertaken in the Indenture. 
  
 As provided in the Indenture and subject to certain limitations therein set
forth, the transfer of this Note may be registered on the Note Register of the Issuer. Upon surrender for registration of transfer of, or presentation of a written instrument of transfer for, this Note at the office or agency designated by the
Issuer pursuant to the Indenture, accompanied by proper instruments of assignment in form satisfactory to the Indenture Trustee, one or more new Notes of any authorized denominations and of a like aggregate initial Note Principal Balance, will be
issued to the designated transferee or transferees. 
  
 Prior to
the due presentment for registration of transfer of this Note, the Issuer, the Indenture Trustee and any agent of the Issuer or the Indenture Trustee may treat the Person in whose name this Note is registered as the owner of such Note (i) on the
applicable Record Date for the purpose of making payments and interest of such Note, and (ii) on any other date for all other purposes whatsoever, as the owner hereof, whether or not this Note be overdue, and neither the Issuer, the Indenture
Trustee nor any such agent of the Issuer or the Indenture Trustee shall be affected by notice to the contrary. 
  
 The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of the Issuer
and the rights of the Holders of the Notes under the Indenture at any time by the Issuer and the Holders of a majority of all Notes at the time outstanding. The Indenture also contains provisions permitting the Holders of Notes representing
specified percentages of the aggregate Note Principal Balance of the Notes on behalf of the Holders of all the Notes, to waive any past Default under the Indenture and its consequences. Any such waiver by the Holder, at the time of the giving
thereof, of this Note (or any one or more predecessor Notes) shall bind the Holder of every Note issued upon the registration of transfer hereof 
  

 A–1–4 

 or in exchange hereof or in lieu hereof, whether or not notation of such consent or waiver is made upon such Note. The
Indenture also permits the Issuer and the Indenture Trustee to amend or waive certain terms and conditions set forth in the Indenture without the consent of the Holders of the Notes issued thereunder. 
  
 Initially, the Notes will be registered in the name of Cede & Co. as
nominee of DTC, acting in its capacity as the Depository for the Notes. The Notes will be delivered by the clearing agency in denominations as provided in the Indenture and subject to certain limitations therein set forth. The Notes are exchangeable
for a like aggregate initial Note Principal Balance of Notes of different authorized denominations, as requested by the Holder surrendering same. 
  
 Unless the Certificate of Authentication hereon has been executed by the Indenture Trustee by manual signature, this Note shall not be entitled to any
benefit under the Indenture, or be valid or obligatory for any purpose. 
  
 AS PROVIDED IN THE INDENTURE, THIS NOTE AND THE INDENTURE CREATING THIS NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH, AND GOVERNED BY, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED THEREIN. 
  

 A–1–5 

 IN WITNESS WHEREOF, the Issuer has caused this instrument to be duly executed by Wilmington Trust
Company, not in its individual capacity but solely as Owner Trustee. 
  
 Dated:
July     , 2004 
  

			
	 HOMEBANC MORTGAGE TRUST 2004-1

	
	BY: WILMINGTON TRUST COMPANY, not in its individual capacity but solely in its capacity as Owner Trustee
		
	 By:
	 	  

	 Authorized Signatory

  
 INDENTURE
TRUSTEE’S CERTIFICATE OF AUTHENTICATION 
  
 This is one of the Class
[I][II]-A Notes referred to in the within-mentioned Indenture. 
  
 U.S. BANK
NATIONAL ASSOCIATION, as Indenture Trustee 
  

			
	 By:
	 	  

	 	 	 Authorized Signatory

  

 A–1–6 

 ABBREVIATIONS 
  
 The following abbreviations, when used in the inscription on the face of the Note, shall be construed as though they were
written out in full according to applicable laws or regulations: 
  

					
			
	TEN COM	  	—	  	as tenants in common
			
	TEN ENT	  	—	  	as tenants by the entireties
			
	JT TEN	  	—	  	as joint tenants with right of survivorship and not as tenants in common
			
	UNIF GIFT MIN ACT	  	—	  	                     Custodian
			
	 	  	 	  	  

			
	 	  	 	  	            (Cust)                          
                              (Minor)
			
	 	  	 	  	under Uniform Gifts to Minor Act
	 	  	 	  	  

			
	 	  	 	  	(State)            

  
 Additional
abbreviations may also be used though not in the above list. 
  

 A–1–7 

 ASSIGNMENT 
  

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto 
  
 PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF 
 ASSIGNEE: 
  

							
	

	  

	  

 (Please print or typewrite name and address, including zip code, of assignee) 
  
                                       
                                        
                                        
                                        
                                        
                    
 the within Note and all rights
thereunder, and hereby irrevocably constitutes and appoints                  attorney to transfer said Note on the books kept for registration thereof,
with full power of substitution in the premises. 
  

	Dated:                                    
                                        
                                        
    	 

  
 Signature Guaranteed
by                                       
                                        
           
  
 NOTICE: The signature(s) to this assignment must correspond with the name as it appears upon the face of the within Note in every particular, without alteration or enlargement or any change whatsoever. Signature(s) must be guaranteed by a
commercial bank or by a member firm of the New York Stock Exchange or another national securities exchange. Notarized or witnessed signatures are not acceptable. 
  

 A–1–8 

 EXHIBIT A-2 
  
 FORM OF CLASS [I][II]-M-[_] NOTES 
  
 THIS NOTE IS SUBORDINATED IN RIGHT OF PAYMENT TO THE CLASS [I][II]-A NOTES [AND CLASS [I][II]-M-1 NOTES] AS DESCRIBED IN THE INDENTURE. 
  
 UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE INDENTURE TRUSTEE OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 
  
 THE HOLDER OF THIS NOTE OR BENEFICIAL OWNER OF ANY INTEREST HEREIN WILL BE DEEMED TO REPRESENT TO ONE OF THE REPRESENTATIONS CONTAINED IN SECTION 4.15 OF THE INDENTURE. 
  
 THIS NOTE IS A NON-RECOURSE OBLIGATION OF THE ISSUER, AND IS LIMITED IN RIGHT OF PAYMENT TO
AMOUNTS AVAILABLE FROM THE TRUST ESTATE AS PROVIDED IN THE INDENTURE REFERRED TO BELOW. THE ISSUER IS NOT OTHERWISE PERSONALLY LIABLE FOR PAYMENTS ON THIS NOTE. 
  

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

 A–2–1 

 HOMEBANC MORTGAGE TRUST 2004-1 
 MORTGAGE-BACKED NOTES 
 CLASS [I][II]-M-[_] 
  

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

		
	 INITIAL NOTE PRINCIPAL
 BALANCE OF THIS NOTE: $[             ]
	 	NOTE NO. 1
		
	 PERCENTAGE INTEREST: 100%
	 	CUSIP NO. [             ]

  
 HomeBanc Mortgage
Trust 2004-1 (the “Issuer”), a Delaware statutory trust, for value received, hereby promises to pay to Cede & Co. or registered assigns, the principal sum of
                                        
($                    ) in monthly installments on the twenty-fifth day of each month or, if such day is not a Business Day, the next
succeeding Business Day (each a “Payment Date”), commencing in August 2004 and ending on or before the Payment Date occurring in August 2029 (the “Final Scheduled Payment Date”) and to pay interest on the Note Principal Balance
of this Note (this “Note”) outstanding from time to time as provided below. 
  
 This Note is one of a duly authorized issue of the Issuer’s Mortgage-Backed Notes, Series 2004-1 (the “Notes”), issued under an Indenture dated as of July 30, 2004 (the “Indenture”), among the
Issuer, Wells Fargo Bank, National Association (the “Securities Administrator”) and U.S. Bank National Association, as indenture trustee (the “Indenture Trustee”, which term includes any successor Indenture Trustee under the
Indenture), to which Indenture and all indentures supplemental thereto reference is hereby made for a statement of the respective rights thereunder of the Issuer, the Indenture Trustee, and the Holders of the Notes and the terms upon which the Notes
are to be authenticated and delivered. All terms used in this Note which are defined in the Indenture shall have the meanings assigned to them in the Indenture. 
  

Payments of principal and interest on this Note will be made on each Payment Date to the Noteholder of record as of the related Record Date. The
“Note Principal Balance” of a Note as of any date of determination is equal to the initial Note Principal Balance thereof, reduced by the aggregate of all amounts previously paid with respect to such Note on account of principal and the
aggregate amount of cumulative Realized Losses allocated to such Note on all prior Payment Dates. 
  
 The principal of, and interest on, this Note are due and payable as described in the Indenture, in such coin or currency of the United States of America
as at the time of payment is legal tender for payment of public and private debts. All payments made by the Issuer with respect to this Note shall be equal to this Note’s pro rata share of the aggregate payments on all Class [I][II]-M-[_] Notes
as described above, and shall be applied as between interest and principal as provided in the Indenture. 
  
 All principal and interest accrued on the Notes, if not previously paid, will become finally due and payable at the Final Scheduled Payment Date.

  

 A-2-2 

 The Notes are subject to redemption in whole, but not in part, by the Holder of the Certificates, or, if
there is no single Holder, the Majority Certificateholder, on any Payment Date on or after the Payment Date on which the aggregate Scheduled Principal Balance of the Mortgage Loans is less than or equal to 20% of aggregate Scheduled Principal
Balance of the Mortgage Loans as of the Cut-off Date. 
  
 The
Issuer shall not be liable upon the indebtedness evidenced by the Notes except to the extent of amounts available from the Trust Estate which constitutes security for the payment of the Notes. The assets included in the Trust Estate will be the sole
source of payments on the Class [I][II]-M-[_] Notes, and each Holder hereof, by its acceptance of this Note, agrees that (i) such Note will be limited in right of payment to amounts available from the Trust Estate as provided in the Indenture and
(ii) such Holder shall have no recourse to the Issuer, the Securities Administrator, the Owner Trustee, the Indenture Trustee, the Depositor, EMC Mortgage Corporation, the Master Servicer, the Servicer, the Special Servicer or any of their
respective affiliates, or to the assets of any of the foregoing entities, except the assets of the Issuer pledged to secure the Class [I][II]-M-[_] Notes pursuant to the Indenture and the rights conveyed by the Issuer under the Indenture.

  
 Any payment of principal or interest payable on this Note
which is punctually paid on the applicable Payment Date shall be paid to the Person in whose name such Note is registered at the close of business on the Record Date for such Payment Date by check mailed to such person’s address as it appears
in the Note Register on such Record Date, except for the final installment of principal and interest payable with respect to such Note, which shall be payable as provided below. Notwithstanding the foregoing, upon written request with appropriate
instructions by the Holder of this Note delivered to the Indenture Trustee at least five Business Days prior to the Record Date, any payment of principal or interest, other than the final installment of principal or interest, shall be made by wire
transfer to an account in the United States designated by such Holder. All scheduled reductions in the principal amount of a Note (or one or more predecessor Notes) effected by payments of principal made on any Payment Date shall be binding upon all
Holders of this Note and of any note issued upon the registration of transfer thereof or in exchange therefor or in lieu thereof, whether or not such payment is noted on such Note. The final payment of this Note shall be payable upon presentation
and surrender thereof on or after the Payment Date thereof at the office designated by the Indenture Trustee or the office or agency of the Issuer maintained by it for such purpose pursuant to Section 3.02 of the Indenture. 
  
 Subject to the foregoing provisions, each Note delivered under the Indenture,
upon registration of transfer of or in exchange for or in lieu of any other Note shall carry the right to unpaid principal and interest that were carried by such other Note. 
  
 If an Event of Default as defined in the Indenture shall occur and be continuing with respect to the Notes, the Notes may
become or be declared due and payable in the manner and with the effect provided in the Indenture. If any such acceleration of maturity occurs prior to the payment of the entire unpaid Note Principal Balance of the Notes, the amount payable to the
Holder of this Note will be equal to the sum of the unpaid Note Principal Balance of the Notes, together with accrued and unpaid interest thereon as described in the Indenture. The Indenture provides that, notwithstanding the acceleration of the
maturity of the Notes, under certain circumstances specified therein, all amounts collected as proceeds of the Trust Estate securing the Notes or otherwise shall continue to be applied to payments of principal of and interest on the Notes as if they
had not been declared due and payable. 
  

 A-2-3 

 The Holder of this Note or Beneficial Owner of any interest herein is deemed to represent that either (1)
it is not acquiring the Note with Plan Assets or (2) (A) the acquisition, holding and transfer of a Note will not give rise to a nonexempt prohibited transaction under Section 406 of ERISA or Section 4975 of the Code and (B) the Notes are rated
investment grade or better and such person believes that the Notes are properly treated as indebtedness without substantial equity features for purposes of the DOL Regulations, and agrees to so treat the Notes. Alternatively, regardless of the
rating of the Notes, such person may provide the Indenture Trustee and the Owner Trustee with an Opinion of Counsel, which Opinion of Counsel will not be at the expense of the Issuer, the Seller, any Underwriter, the Owner Trustee, the Indenture
Trustee, the Securities Administrator, the Master Servicer, the Special Servicer or any successor servicer which opines that the acquisition, holding and transfer of such Note or interest therein is permissible under applicable law, will not
constitute or result in a non-exempt prohibited transaction under ERISA or Section 4975 of the Code and will not subject the Issuer, the Seller, the Depositor, any Underwriter, the Owner Trustee, the Indenture Trustee, the Master Servicer, the
Servicer, the Special Servicer or any successor servicer to any obligation in addition to those undertaken in the Indenture. 
  
 As provided in the Indenture and subject to certain limitations therein set forth, the transfer of this Note may be registered on the Note Register of the
Issuer. Upon surrender for registration of transfer of, or presentation of a written instrument of transfer for, this Note at the office or agency designated by the Issuer pursuant to the Indenture, accompanied by proper instruments of assignment in
form satisfactory to the Indenture Trustee, one or more new Notes of any authorized denominations and of a like aggregate initial Note Principal Balance, will be issued to the designated transferee or transferees. 
  
 Prior to the due presentment for registration of transfer of this Note, the
Issuer, the Indenture Trustee and any agent of the Issuer or the Indenture Trustee may treat the Person in whose name this Note is registered as the owner of such Note (i) on the applicable Record Date for the purpose of making payments and interest
of such Note, and (ii) on any other date for all other purposes whatsoever, as the owner hereof, whether or not this Note be overdue, and neither the Issuer, the Indenture Trustee nor any such agent of the Issuer or the Indenture Trustee shall be
affected by notice to the contrary. 
  
 The Indenture permits,
with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of the Issuer and the rights of the Holders of the Notes under the Indenture at any time by the Issuer and the Holders of a
majority of all Notes at the time outstanding. The Indenture also contains provisions permitting the Holders of Notes representing specified percentages of the aggregate Note Principal Balance of the Notes on behalf of the Holders of all the Notes,
to waive any past Default under the Indenture and its consequences. Any such waiver by the Holder, at the time of the giving thereof, of this Note (or any one or more predecessor Notes) shall bind the Holder of every Note issued upon the
registration of transfer hereof or in exchange hereof or in lieu hereof, whether or not notation of such consent or waiver is made upon such Note. The Indenture also permits the Issuer and the Indenture Trustee to amend or waive certain terms and
conditions set forth in the Indenture without the consent of the Holders of the Notes issued thereunder. 
  

 A-2-4 

 Initially, the Notes will be registered in the name of Cede & Co. as nominee of DTC, acting in its
capacity as the Depository for the Notes. The Notes will be delivered by the clearing agency in denominations as provided in the Indenture and subject to certain limitations therein set forth. The Notes are exchangeable for a like aggregate initial
Note Principal Balance of Notes of different authorized denominations, as requested by the Holder surrendering same. 
  
 Unless the Certificate of Authentication hereon has been executed by the Indenture Trustee by manual signature, this Note shall not be entitled to any
benefit under the Indenture, or be valid or obligatory for any purpose. 
  
 AS PROVIDED IN THE INDENTURE, THIS NOTE AND THE INDENTURE CREATING THIS NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH, AND GOVERNED BY, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED THEREIN. 
  

 A-2-5 

 IN WITNESS WHEREOF, the Issuer has caused this instrument to be duly executed by Wilmington Trust
Company, not in its individual capacity but solely as Owner Trustee. 
  
 Dated: July     , 2004 
  

			
	 HOMEBANC MORTGAGE TRUST 2004-1

		
	 BY:
	 	 WILMINGTON TRUST COMPANY, not in
 its individual capacity but solely in its capacity
 as Owner Trustee

		
	 By:
	 	  

	 	 	 Authorized Signatory

  
 INDENTURE
TRUSTEE’S CERTIFICATE OF AUTHENTICATION 
  
 This is one of the Class
[I][II]-M-[_] Notes referred to in the within-mentioned Indenture. 
  
 U.S. BANK
NATIONAL ASSOCIATION, as Indenture Trustee 
  

			
		
	 By:
	 	  

	 	 	 Authorized Signatory

  

 A-2-6 

 ABBREVIATIONS 
  
 The following abbreviations, when used in the inscription on the face of the Note, shall be construed as though they were
written out in full according to applicable laws or regulations: 
  

					
			
	TEN COM	  	—	  	as tenants in common
			
	TEN ENT	  	—	  	as tenants by the entireties
			
	JT TEN	  	—	  	as joint tenants with right of survivorship and not as tenants in common
			
	UNIF GIFT MIN ACT	  	—	  	                     Custodian
			
	 	  	 	  	  

			
	 	  	 	  	        (Cust)                              
                          (Minor)
			
	 	  	 	  	under Uniform Gifts to Minor Act
	 	  	 	  	  

			
	 	  	 	  	(State)            

  
 Additional
abbreviations may also be used though not in the above list. 
  

 A–2–7 

 ASSIGNMENT 
  

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto 
  
 PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE: 
  
 (Please print or typewrite name and address, including zip code, of assignee)

  
 the within Note and all rights thereunder, and hereby irrevocably constitutes
and appoints
                                        
attorney to transfer said Note on the books kept for registration thereof, with full power of substitution in the premises. 
  

	

					
	 Dated:                                   
     
	 	                                      
                                	 	 
	 SignatureGuaranteed by _____________________________________________________

  
 NOTICE: The
signature(s) to this assignment must correspond with the name as it appears upon the face of the within Note in every particular, without alteration or enlargement or any change whatsoever. Signature(s) must be guaranteed by a commercial bank or by
a member firm of the New York Stock Exchange or another national securities exchange. Notarized or witnessed signatures are not acceptable. 
  

 A–2–8 

 EXHIBIT A-3 
  
 FORM OF CLASS [I][II]-B NOTES 
  
 THIS NOTE IS SUBORDINATED IN RIGHT OF PAYMENT TO THE CLASS [I][II]-A, CLASS [I][II]-M-1 AND CLASS [I][II]-M-2 NOTES AS DESCRIBED IN THE INDENTURE. 
  
 UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE INDENTURE TRUSTEE OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 
  
 THE HOLDER OF THIS NOTE OR BENEFICIAL OWNER OF ANY INTEREST HEREIN WILL BE DEEMED TO REPRESENT TO ONE OF THE REPRESENTATIONS CONTAINED IN SECTION 4.15 OF THE INDENTURE. 
  
 THIS NOTE IS A NON-RECOURSE OBLIGATION OF THE ISSUER, AND IS LIMITED IN RIGHT OF PAYMENT TO
AMOUNTS AVAILABLE FROM THE TRUST ESTATE AS PROVIDED IN THE INDENTURE REFERRED TO BELOW. THE ISSUER IS NOT OTHERWISE PERSONALLY LIABLE FOR PAYMENTS ON THIS NOTE. 
  

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

 A–3–1 

 HOMEBANC MORTGAGE TRUST 2004-1 
 MORTGAGE-BACKED NOTES 
 CLASS [I][II]-B 
  

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

		
	 INITIAL NOTE PRINCIPAL
 BALANCE OF THIS NOTE: $[
            ]
	 	NOTE NO. 1
		
	PERCENTAGE INTEREST: 100%	 	CUSIP NO. [             ]

  
 HomeBanc Mortgage
Trust 2004-1 (the “Issuer”), a Delaware statutory trust, for value received, hereby promises to pay to Cede & Co. or registered assigns, the principal sum of
                                        
($                    ) in monthly installments on the twenty-fifth day of each month or, if such day is not a Business Day, the next
succeeding Business Day (each a “Payment Date”), commencing in August 2004 and ending on or before the Payment Date occurring in August 2029 (the “Final Scheduled Payment Date”) and to pay interest on the Note Principal Balance
of this Note (this “Note”) outstanding from time to time as provided below. 
  
 This Note is one of a duly authorized issue of the Issuer’s Mortgage-Backed Notes, Series 2004-1 (the “Notes”), issued under an Indenture dated as of July 30, 2004 (the “Indenture”), among the
Issuer, Wells Fargo Bank, National Association (the “Securities Administrator”) and U.S. Bank National Association, as indenture trustee (the “Indenture Trustee”, which term includes any successor Indenture Trustee under the
Indenture), to which Indenture and all indentures supplemental thereto reference is hereby made for a statement of the respective rights thereunder of the Issuer, the Indenture Trustee, and the Holders of the Notes and the terms upon which the Notes
are to be authenticated and delivered. All terms used in this Note which are defined in the Indenture shall have the meanings assigned to them in the Indenture. 
  

Payments of principal and interest on this Note will be made on each Payment Date to the Noteholder of record as of the related Record Date. The
“Note Principal Balance” of a Note as of any date of determination is equal to the initial Note Principal Balance thereof, reduced by the aggregate of all amounts previously paid with respect to such Note on account of principal and the
aggregate amount of cumulative Realized Losses allocated to such Note on all prior Payment Dates. 
  
 The principal of, and interest on, this Note are due and payable as described in the Indenture, in such coin or currency of the United States of America
as at the time of payment is legal tender for payment of public and private debts. All payments made by the Issuer with respect to this Note shall be equal to this Note’s pro rata share of the aggregate payments on all Class [I][II]-B Notes as
described above, and shall be applied as between interest and principal as provided in the Indenture. 
  
 All principal and interest accrued on the Notes, if not previously paid, will become finally due and payable at the Final Scheduled Payment Date.

  

 A–3–2 

 The Notes are subject to redemption in whole, but not in part, by the Holder of the Certificates, or, if
there is no single Holder, the Majority Certificateholder, on any Payment Date on or after the Payment Date on which the aggregate Scheduled Principal Balance of the Mortgage Loans is less than or equal to 20% of aggregate Scheduled Principal
Balance of the Mortgage Loans as of the Cut-off Date. 
  
 The
Issuer shall not be liable upon the indebtedness evidenced by the Notes except to the extent of amounts available from the Trust Estate which constitutes security for the payment of the Notes. The assets included in the Trust Estate will be the sole
source of payments on the Class [I][II]-B Notes, and each Holder hereof, by its acceptance of this Note, agrees that (i) such Note will be limited in right of payment to amounts available from the Trust Estate as provided in the Indenture and (ii)
such Holder shall have no recourse to the Issuer, the Securities Administrator, the Owner Trustee, the Indenture Trustee, the Depositor, EMC Mortgage Corporation, the Master Servicer, the Servicer, the Special Servicer or any of their respective
affiliates, or to the assets of any of the foregoing entities, except the assets of the Issuer pledged to secure the Class [I][II]-B Notes pursuant to the Indenture and the rights conveyed by the Issuer under the Indenture. 
  
 Any payment of principal or interest payable on this Note which is punctually
paid on the applicable Payment Date shall be paid to the Person in whose name such Note is registered at the close of business on the Record Date for such Payment Date by check mailed to such person’s address as it appears in the Note Register
on such Record Date, except for the final installment of principal and interest payable with respect to such Note, which shall be payable as provided below. Notwithstanding the foregoing, upon written request with appropriate instructions by the
Holder of this Note delivered to the Indenture Trustee at least five Business Days prior to the Record Date, any payment of principal or interest, other than the final installment of principal or interest, shall be made by wire transfer to an
account in the United States designated by such Holder. All scheduled reductions in the principal amount of a Note (or one or more predecessor Notes) effected by payments of principal made on any Payment Date shall be binding upon all Holders of
this Note and of any note issued upon the registration of transfer thereof or in exchange therefor or in lieu thereof, whether or not such payment is noted on such Note. The final payment of this Note shall be payable upon presentation and surrender
thereof on or after the Payment Date thereof at the office designated by the Indenture Trustee or the office or agency of the Issuer maintained by it for such purpose pursuant to Section 3.02 of the Indenture. 
  
 Subject to the foregoing provisions, each Note delivered under the Indenture,
upon registration of transfer of or in exchange for or in lieu of any other Note shall carry the right to unpaid principal and interest that were carried by such other Note. 
  
 If an Event of Default as defined in the Indenture shall occur and be continuing with respect to the Notes, the Notes may
become or be declared due and payable in the manner and with the effect provided in the Indenture. If any such acceleration of maturity occurs prior to the payment of the entire unpaid Note Principal Balance of the Notes, the amount payable to the
Holder of this Note will be equal to the sum of the unpaid Note Principal Balance of the Notes, together with accrued and unpaid interest thereon as described in the Indenture. The Indenture provides that, notwithstanding the acceleration of the
maturity of the Notes, under certain circumstances specified therein, all 
  

 A–3–3 

 amounts collected as proceeds of the Trust Estate securing the Notes or otherwise shall continue to be applied to
payments of principal of and interest on the Notes as if they had not been declared due and payable. 
  
 The Holder of this Note or Beneficial Owner of any interest herein is deemed to represent that either (1) it is not acquiring the Note with Plan Assets or
(2) (A) the acquisition, holding and transfer of a Note will not give rise to a nonexempt prohibited transaction under Section 406 of ERISA or Section 4975 of the Code and (B) the Notes are rated investment grade or better and such person believes
that the Notes are properly treated as indebtedness without substantial equity features for purposes of the DOL Regulations, and agrees to so treat the Notes. Alternatively, regardless of the rating of the Notes, such person may provide the
Indenture Trustee and the Owner Trustee with an Opinion of Counsel, which Opinion of Counsel will not be at the expense of the Issuer, the Seller, any Underwriter, the Owner Trustee, the Indenture Trustee, the Securities Administrator, the Master
Servicer, the Servicer, the Special Servicer or any successor servicer which opines that the acquisition, holding and transfer of such Note or interest therein is permissible under applicable law, will not constitute or result in a non-exempt
prohibited transaction under ERISA or Section 4975 of the Code and will not subject the Issuer, the Seller, the Depositor, any Underwriter, the Owner Trustee, the Indenture Trustee, the Master Servicer, the Servicer, the Special Servicer or any
successor servicer to any obligation in addition to those undertaken in the Indenture. 
  
 As provided in the Indenture and subject to certain limitations therein set forth, the transfer of this Note may be registered on the Note Register of the Issuer. Upon surrender for registration of transfer of, or
presentation of a written instrument of transfer for, this Note at the office or agency designated by the Issuer pursuant to the Indenture, accompanied by proper instruments of assignment in form satisfactory to the Indenture Trustee, one or more
new Notes of any authorized denominations and of a like aggregate initial Note Principal Balance, will be issued to the designated transferee or transferees. 
  
 Prior to the due presentment for registration of transfer of this Note, the Issuer, the Indenture Trustee and any agent of the Issuer or the Indenture
Trustee may treat the Person in whose name this Note is registered as the owner of such Note (i) on the applicable Record Date for the purpose of making payments and interest of such Note, and (ii) on any other date for all other purposes
whatsoever, as the owner hereof, whether or not this Note be overdue, and neither the Issuer, the Indenture Trustee nor any such agent of the Issuer or the Indenture Trustee shall be affected by notice to the contrary. 
  
 The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the Issuer and the rights of the Holders of the Notes under the Indenture at any time by the Issuer and the Holders of a majority of all Notes at the time outstanding. The
Indenture also contains provisions permitting the Holders of Notes representing specified percentages of the aggregate Note Principal Balance of the Notes on behalf of the Holders of all the Notes, to waive any past Default under the Indenture and
its consequences. Any such waiver by the Holder, at the time of the giving thereof, of this Note (or any one or more predecessor Notes) shall bind the Holder of every Note issued upon the registration of transfer hereof or in exchange hereof or in
lieu hereof, whether or not notation of such consent or waiver is made upon such Note. The Indenture also permits the Issuer and the Indenture Trustee to amend or waive certain terms and conditions set forth in the Indenture without the consent of
the Holders of the Notes issued thereunder. 
  

 A–3–4 

 Initially, the Notes will be registered in the name of Cede & Co. as nominee of DTC, acting in its
capacity as the Depository for the Notes. The Notes will be delivered by the clearing agency in denominations as provided in the Indenture and subject to certain limitations therein set forth. The Notes are exchangeable for a like aggregate initial
Note Principal Balance of Notes of different authorized denominations, as requested by the Holder surrendering same. 
  
 Unless the Certificate of Authentication hereon has been executed by the Indenture Trustee by manual signature, this Note shall not be entitled to any
benefit under the Indenture, or be valid or obligatory for any purpose. 
  
 AS PROVIDED IN THE INDENTURE, THIS NOTE AND THE INDENTURE CREATING THIS NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH, AND GOVERNED BY, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED THEREIN. 
  

 A–3–5 

 IN WITNESS WHEREOF, the Issuer has caused this instrument to be duly executed by Wilmington Trust
Company, not in its individual capacity but solely as Owner Trustee. 
  
 Dated:
July             , 2004 
  

			
	HOMEBANC MORTGAGE TRUST 2004-1
		
	BY:	 	WILMINGTON TRUST COMPANY, not in its individual capacity but solely in its capacity as Owner Trustee
		
	By:	 	  

	 	 	Authorized Signatory

  
 INDENTURE
TRUSTEE’S CERTIFICATE OF AUTHENTICATION 
  
 This is one of the Class
[I][II]-B Notes referred to in the within-mentioned Indenture. 
  
 U.S. BANK
NATIONAL ASSOCIATION, as Indenture Trustee 
  

			
	By:	 	  

	 	 	Authorized Signatory

  

 A–3–6 

 ABBREVIATIONS 
  
 The following abbreviations, when used in the inscription on the face of the Note, shall be construed as though they were
written out in full according to applicable laws or regulations: 
  

					
			
	TEN COM	  	—	  	as tenants in common
			
	TEN ENT	  	—	  	as tenants by the entireties
			
	JT TEN	  	—	  	as joint tenants with right of survivorship and not as tenants in common
			
	UNIF GIFT MIN ACT	  	—	  	                     Custodian
			
	 	  	 	  	  

			
	 	  	 	  	        (Cust)                              
                          (Minor)
			
	 	  	 	  	under Uniform Gifts to Minor Act
	 	  	 	  	  

			
	 	  	 	  	(State)            

  
 Additional
abbreviations may also be used though not in the above list. 
  

 A–3–7 

 ASSIGNMENT 
  
 FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto 
  
 PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE:

  
 (Please print or typewrite name and address, including zip
code, of assignee) 
  
 the within Note and all rights thereunder, and hereby
irrevocably constitutes and appoints
                                        
attorney to transfer said Note on the books kept for registration thereof, with full power of substitution in the premises. 
  

	

					
	 Dated:                                   
     
	 	                                      
                              	 	 
	 SignatureGuaranteed by ____________________________________________________

  
 NOTICE: The
signature(s) to this assignment must correspond with the name as it appears upon the face of the within Note in every particular, without alteration or enlargement or any change whatsoever. Signature(s) must be guaranteed by a commercial bank or by
a member firm of the New York Stock Exchange or another national securities exchange. Notarized or witnessed signatures are not acceptable. 
  

 A–3–8

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