Document:

Unassociated Document

    
Lease
      Agreement

    
      

      This
        Lease is made by and between LESSOR: Wang, Rei-Bi (hereinafter referred to
        as
        "Party A") and LESSEE : Kid Castle Internet Technology Corporation (hereinafter
        referred to as "Party B"). Both parties agree to abide by the terms and
        conditions set forth as follows:

      

      
        	1.    	
                Premises
                  under the Lease: 8th F-5, No. 251, Ming-Chuan 1 Road,
                  KaohsiungCity.

              

      

      

      
        	2.    	
                The
                  term of the Lease shall be two years, commencing from June 1st,
                  2007to
                  Nov. 30, 2007.

              

      

      

      
        	3.    	
                Rent:

              

      

      

      
        	
              	A.	
                The
                  monthly rent shall be NT$48,000 (including value added tax) and
                  shall be
                  paid on the first day of each
                  month.

              

      

      

      
        	
              	B.	
                Party
                  B shall pay a rental deposit of NT$165,000 to Party A. The said
                  rental
                  deposit shall be returned to Party B without interest upon expiration
                  of
                  this Lease, when Party B vacates and surrenders the Premises to
                  Party
                  A.

              

      

      

      
        	4.    	
                Use
                  of the Premises:

              

      

      

      
        	
              	A.	
                Party
                  B shall use the Premises only for the business
                  operation.

              

      

      

      
        	
              	B.	
                Prior
                  to consent by Party A during the term of this Lease, Party B shall
                  not, in
                  whole or in part, have the Premises lent, subleased, transferred,
                  to any
                  third party, or in any other way provided for use by any third
                  party.

              

      

      

      
        	
              	C.	
                Upon
                  expiration of this Lease, Party B shall not request moving costs
                  and/or
                  other expenses from Party A, and is obligated to vacate and surrender
                  the
                  Premises to Party A.

              

      

      

      
        	
              	D.	
                Party
                  B shall not use the Premises for any illegal use, nor for storing
                  hazardous articles that will cause public
                  danger.

              

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      
        	
              	E.	
                If
                  Party B desires to make improvement and/or change of facilities
                  in the
                  Premises, construction work can only begin upon consent given by
                  Party A
                  and shall not damage the main structure and the facilities of the
                  Building. Upon expiration of the terms of this Lease, Party B shall
                  be
                  responsible for the restoration of the
                  Premises.

              

      

      

      
        	5.    	
                Rights
                  and Obligations: Party B shall use the Premises with the degree
                  of care of
                  a responsible administrator. Unless the Premises are damaged or
                  destroyed
                  due to act of God or any other force majeure, Party B shall be
                  responsible
                  for the damages attributed to Party B's negligence. If the damage
                  or
                  destruction is caused in the course of nature or due to normal
                  wear and
                  tear, Party A shall be responsible for the
                  reparation.

              

      

      

      
        	6.    	
                Default
                  and Penalty:

              

      

      

      
        	
              	A.	
                Party
                  A may terminate the Lease in the event that Party B violates any
                  provisions of this Lease or delays in paying rent payable over
                  two terms
                  of payment and fails to pay the rent within a time limit upon a
                  warning
                  given by Party A.

              

      

      

      
        	
              	B.	
                Upon
                  the expiration or termination of the Lease term, in the event Party
                  B
                  delays in surrendering the Premises, Party B shall be liable for
                  a default
                  penalty equivalent to one month of the rental commencing from the
                  following date of expiration or
                  termination.

              

      

      

      
        	7.    	
                Special
                  Agreements:

              

      

      

      
        	
              	A.	
                All
                  taxes relating to the Premises shall be borne by Party A; whereas
                  the
                  expenses involved in the water supply, electricity and taxes relating
                  to
                  business operations shall be borne by Party
                  B.

              

      

      

      
        	
              	B.	
                Any
                  article or furniture left inside the Premises after Party B has
                  vacated
                  and returned the Premises, shall be deemed to be abandoned at the
                  disposal
                  of Party A as waste.

              

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

         

      

      
        	
              	
                C.

              	
                If
                  the parties hereto provide a guarantor(s) with this Lease, the
                  parties and
                  their guarantor(s) respectively shall be jointly liable to the
                  responsibility for the performance of the
                  Lease.

              

      

      

      
        	
              	D.	
                The
                  termination of this Lease during the Lease term by either party
                  shall be
                  subject to consent by the other
                  party.

              

      

      

      
        	8.    	
                Forcible
                  execution to be taken: (blank)

              

      

      

      The
        Parties:

      

      
        	
                Lessor
                  (Party A): 

              	 	
                /s/
                  Wang, Rei-Bi

              
	 	 	 
	
                Address:
                  

              	 	
                14th
                  Floor, No. 1, Lane 228, Nanking

              
	
                 

              	 	
                Road,
                  Feng Shan City, Kaohsiung County

              
	 	 	 
	
                ID
                  No.: 

              	 	
                T202439142

              
	 	 	 
	
                Lessee
                  (Party B) 

              	 	
                /s/
                  Kid Castle Internet Technology Corporation

              
	 	 	 
	
                Address:
                  

              	 	
                8th
                  Floor, No. 98, Ming-Chuan Road,

              
	
                 

              	 	
                Hsintien
                  City, Taipei County

              
	 	 	 
	
                Business
                  Uniform No.: 

              	 	
                70676630

              
	 	 	 
	
                Party
                  B's Guarantor (Party C):

              	 	
                (Intentionally
                  Blank)

              
	 	 	 
	
                ID
                  No.: 

              	 	
                (Intentionally
                  Blank)

              
	 	 	 
	
                Address:
                  

              	 	
                (Intentionally
                  Blank)FIRST
      HORIZON ASSET SECURITIES INC.

     

    Depositor

     

    FIRST
      HORIZON HOME LOAN CORPORATION

     

    Master
      Servicer

     

    and

     

    THE
      BANK
      OF NEW YORK

     

    Trustee

     

    
      
        

      

    

     

    POOLING
      AND SERVICING AGREEMENT

     

    Dated
      as
      of May 1, 2007

     

    
      
        

      

    

     

    FIRST
      HORIZON MORTGAGE PASS-THROUGH TRUST 2007-3

     

    MORTGAGE
      PASS-THROUGH CERTIFICATES, SERIES 2007-3

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    TABLE
      OF
      CONTENTS

    

      
        	 	 	 	
                Page 

              	 
	
                ARTICLE
                  I DEFINITIONS

              	 	 	
                8

              	 
	 	 	 	 	 
	
                ARTICLE
                  II CONVEYANCE OF MORTGAGE LOANS; REPRESENTATIONS AND
                  WARRANTIES

              	 	 	
                40

              	 
	 	 	 	 	 
	
                SECTION
                  2.1 Conveyance of Mortgage Loans.

              	 	 	
                40

              	 
	
                SECTION
                  2.2 Acceptance by Trustee of the Mortgage Loans.

              	 	 	
                44

              	 
	
                SECTION
                  2.3 Representations and Warranties of the Master Servicer; Covenants
                  of
                  the Seller.

              	 	 	
                46

              	 
	
                SECTION
                  2.4 Representations and Warranties of the Depositor as to the Mortgage
                  Loans.

              	 	 	
                49

              	 
	
                SECTION
                  2.5 Delivery of Opinion of Counsel in Connection with
                  Substitutions.

              	 	 	
                49

              	 
	
                SECTION
                  2.6 Execution and Delivery of Certificates.

              	 	 	
                50

              	 
	
                SECTION
                  2.7 REMIC Matters.

              	 	 	
                50

              	 
	
                SECTION
                  2.8 Covenants of the Master Servicer.

              	 	 	
                50

              	 
	 	 	 	 	 
	
                ARTICLE
                  III ADMINISTRATION AND SERVICING OF MORTGAGE LOANS

              	 	 	
                50

              	 
	 	 	 	 	 
	
                SECTION
                  3.1 Master Servicer to Service Mortgage Loans.

              	 	 	
                50

              	 
	
                SECTION
                  3.2 Subservicing; Enforcement of the Obligations of
                  Servicers.

              	 	 	
                52

              	 
	
                SECTION
                  3.3 Rights of the Depositor and the Trustee in Respect of the Master
                  Servicer.

              	 	 	
                52

              	 
	
                SECTION
                  3.4 Trustee to Act as Master Servicer.

              	 	 	
                53

              	 
	
                SECTION
                  3.5 Collection of Mortgage Loan Payments; Certificate Account;
                  Distribution Account.

              	 	 	
                53

              	 
	
                SECTION
                  3.6 Collection of Taxes, Assessments and Similar Items; Escrow
                  Accounts.

              	 	 	
                56

              	 
	
                SECTION
                  3.7 Access to Certain Documentation and Information Regarding the
                  Mortgage
                  Loans.

              	 	 	
                57

              	 
	
                SECTION
                  3.8 Permitted Withdrawals from the Certificate Account and Distribution
                  Account.

              	 	 	
                57

              	 
	
                SECTION
                  3.9 Maintenance of Hazard Insurance; Maintenance of Primary Insurance
                  Policies.

              	 	 	
                59

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

              	 	 	
                60

              	 
	
                SECTION
                  3.11 Realization Upon Defaulted Mortgage Loans; Repurchase of Certain
                  Mortgage Loans.

              	 	 	
                62

              	 
	
                SECTION
                  3.12 Trustee to Cooperate; Release of Mortgage Files.

              	 	 	
                64

              	 
	
                SECTION
                  3.13 Documents Records and Funds in Possession of Master Servicer
                  to be
                  Held for the Trustee.

              	 	 	
                65

              	 
	
                SECTION
                  3.14 Master Servicing Compensation.

              	 	 	
                65

              	 
	
                SECTION
                  3.15 Access to Certain Documentation.

              	 	 	
                66

              	 
	
                SECTION
                  3.16 Annual Statement as to Compliance.

              	 	 	
                66

              	 
	
                SECTION
                  3.17 Errors and Omissions Insurance; Fidelity Bonds.

              	 	 	
                67

              	 
	 	 	 	 	 
	
                ARTICLE
                  IV DISTRIBUTIONS AND ADVANCES BY THE MASTER SERVICER

              	 	 	
                67

              	 
	 	 	 	 	 
	
                SECTION
                  4.1 Advances.

              	 	 	
                67

              	 
	
                SECTION
                  4.2 Priorities of Distribution.

              	 	 	
                67

              	 
	
                SECTION
                  4.3 Method of Distribution.

              	 	 	
                72

              	 
	
                SECTION
                  4.4 Allocation of Losses.

              	 	 	
                73

              	 

      

       

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

       

      
        	
                SECTION
                  4.5 Reserved.

              	 	 	
                75

              	 
	
                SECTION
                  4.6 Monthly Statements to Certificateholders.

              	 	 	
                75

              	 
	 	 	 	 	 
	
                ARTICLE
                  V THE CERTIFICATES

              	 	 	
                77

              	 
	 	 	 	 	 
	
                SECTION
                  5.1 The Certificates.

              	 	 	
                77

              	 
	
                SECTION
                  5.2 Certificate Register; Registration of Transfer and Exchange
                  of
                  Certificates.

              	 	 	
                77

              	 
	
                SECTION
                  5.3 Mutilated, Destroyed, Lost or Stolen Certificates.

              	 	 	
                84

              	 
	
                SECTION
                  5.4 Persons Deemed Owners.

              	 	 	
                85

              	 
	
                SECTION
                  5.5 Access to List of Certificateholders’ Names and
                  Addresses.

              	 	 	
                85

              	 
	
                SECTION
                  5.6 Maintenance of Office or Agency.

              	 	 	
                85

              	 
	 	 	 	 	 
	
                ARTICLE
                  VI THE DEPOSITOR AND THE MASTER SERVICER

              	 	 	
                85

              	 
	 	 	 	 	 
	
                SECTION
                  6.1 Respective Liabilities of the Depositor and the Master
                  Servicer.

              	 	 	
                85

              	 
	
                SECTION
                  6.2 Merger or Consolidation of the Depositor or the Master
                  Servicer.

              	 	 	
                86

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

              	 	 	
                86

              	 
	
                SECTION
                  6.4 Limitation on Resignation of Master Servicer.

              	 	 	
                87

              	 
	 	 	 	 	 
	
                ARTICLE
                  VII DEFAULT

              	 	 	
                87

              	 
	 	 	 	 	 
	
                SECTION
                  7.1 Events of Default.

              	 	 	
                87

              	 
	
                SECTION
                  7.2 Trustee to Act; Appointment of Successor.

              	 	 	
                89

              	 
	
                SECTION
                  7.3 Notification to Certificateholders.

              	 	 	
                91

              	 
	 	 	 	 	 
	
                ARTICLE
                  VIII CONCERNING THE TRUSTEE

              	 	 	
                91

              	 
	 	 	 	 	 
	
                SECTION
                  8.1 Duties of Trustee.

              	 	 	
                91

              	 
	
                SECTION
                  8.2 Certain Matters Affecting the Trustee.

              	 	 	
                93

              	 
	
                SECTION
                  8.3 Trustee Not Liable for Certificates or Mortgage Loans.

              	 	 	
                95

              	 
	
                SECTION
                  8.4 Trustee May Own Certificates.

              	 	 	
                95

              	 
	
                SECTION
                  8.5 Trustee’s Fees and Expenses.

              	 	 	
                95

              	 
	
                SECTION
                  8.6 Eligibility Requirements for Trustee.

              	 	 	
                96

              	 
	
                SECTION
                  8.7 Resignation and Removal of Trustee.

              	 	 	
                96

              	 
	
                SECTION
                  8.8 Successor Trustee.

              	 	 	
                97

              	 
	
                SECTION
                  8.9 Merger or Consolidation of Trustee.

              	 	 	
                98

              	 
	
                SECTION
                  8.10 Appointment of Co-Trustee or Separate Trustee.

              	 	 	
                98

              	 
	
                SECTION
                  8.11 Tax Matters.

              	 	 	
                99

              	 
	 	 	 	 	 
	
                ARTICLE
                  IX TERMINATION

              	 	 	
                101

              	 
	 	 	 	 	 
	
                SECTION
                  9.1 Termination upon Liquidation or Purchase of all Mortgage
                  Loans.

              	 	 	
                101

              	 
	
                SECTION
                  9.2 Final Distribution on the Certificates.

              	 	 	
                102

              	 
	
                SECTION
                  9.3 Additional Termination Requirements.

              	 	 	
                103

              	 
	 	 	 	 	 
	
                ARTICLE
                  X EXCHANGE ACT REPORTING

              	 	 	
                104

              	 
	 	 	 	 	 
	
                SECTION
                  10.1 Filing Obligations.

              	 	 	
                104

              	 
	
                SECTION
                  10.2 Form 10-D Filings.

              	 	 	
                104

              	 
	
                SECTION
                  10.3 Form 8-K Filings.

              	 	 	
                105

              	 
	
                SECTION
                  10.4 Form 10-K Filings.

              	 	 	
                105

              	 
	
                SECTION
                  10.5 Sarbanes-Oxley Certification.

              	 	 	
                106

              	 
	
                SECTION
                  10.6 Form 15 Filing.

              	 	 	
                107

              	 
	
                SECTION
                  10.7 Report on Assessment of Compliance and Attestation.

              	 	 	
                107

              	 
	
                SECTION
                  10.8 Use of Subservicers and Subcontractors.

              	 	 	
                108

              	 
	
                SECTION
                  10.9 Amendments.

              	 	 	
                109

              	 
	 	 	 	 	 

      

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      
        	
                ARTICLE
                  XI MISCELLANEOUS PROVISIONS

              	 	 	
                109

              	 
	 	 	 	 	 
	
                SECTION
                  11.1 Amendment.

              	 	 	
                109

              	 
	
                SECTION
                  11.2 Recordation of Agreement; Counterparts.

              	 	 	
                111

              	 
	
                SECTION
                  11.3 Governing Law.

              	 	 	
                111

              	 
	
                SECTION
                  11.4 Intention of Parties.

              	 	 	
                112

              	 
	
                SECTION
                  11.5 Notices.

              	 	 	
                112

              	 
	
                SECTION
                  11.6 Severability of Provisions.

              	 	 	
                113

              	 
	
                SECTION
                  11.7 Assignment.

              	 	 	
                113

              	 
	
                SECTION
                  11.8 Limitation on Rights of Certificateholders.

              	 	 	
                113

              	 
	
                SECTION
                  11.9 Inspection and Audit Rights.

              	 	 	
                114

              	 
	
                SECTION
                  11.10 Certificates Nonassessable and Fully Paid.

              	 	 	
                114

              	 
	
                SECTION
                  11.11 Limitations on Actions; No Proceedings.

              	 	 	
                115

              	 
	
                SECTION
                  11.12 Acknowledgment of Seller.

              	 	 	
                115

              	 

      

       

      
        
          	
                   SCHEDULES

                
	 
	
                  Schedule
                    I:

                	 	
                  Mortgage
                    Loan Schedule

                	 	
                  S-I-1

                
	
                  Schedule
                    II:

                	 	
                  Representations
                    and Warranties of the Master Servicer

                	 	
                  S-II-1

                
	
                  Schedule
                    III:

                	 	
                  Form
                    of Monthly Master Servicer Report

                	 	
                  S-III-1

                
	 	 	 	 	
                   

                
	
                   EXHIBITS

                
	 
	
                  Exhibit
                    A-1:

                	 	
                  Form
                    of Senior Certificate

                	 	
                  A-1-1

                
	
                  Exhibit
                    A-2:

                	 	
                  Form
                    of Senior Certificate/Class A-PO Certificate

                	 	
                  A-2-1

                
	
                  Exhibit
                    B:

                	 	
                  Form
                    of Subordinated Certificate

                	 	
                  B-1

                
	
                  Exhibit
                    C:

                	 	
                  Form
                    of Residual Certificate

                	 	
                  C-1

                
	
                  Exhibit
                    D:

                	 	
                  Form
                    of Reverse of Certificates

                	 	
                  D-1

                
	
                  Exhibit
                    E:

                	 	
                  Form
                    of Initial Certification

                	 	
                  E-1

                
	
                  Exhibit
                    F:

                	 	
                  Form
                    of Delay Delivery Certification

                	 	
                  F-1

                
	
                  Exhibit
                    G:

                	 	
                  Form
                    of Subsequent Certification of Custodian

                	 	
                  G-1

                
	
                  Exhibit
                    H:

                	 	
                  Transfer
                    Affidavit

                	 	
                  H-1

                
	
                  Exhibit
                    I:

                	 	
                  Form
                    of Transferor Certificate

                	 	
                  I-1

                
	
                  Exhibit
                    J:

                	 	
                  Form
                    of Investment Letter [Non-Rule 144A]

                	 	
                  J-1

                
	
                  Exhibit
                    K:

                	 	
                  Form
                    of Rule 144A Letter

                	 	
                  K-1

                
	
                  Exhibit
                    L:

                	 	
                  Request
                    for Release (for Trustee)

                	 	
                  L-1

                
	
                  Exhibit
                    M:

                	 	
                  Request
                    for Release (Mortgage Loan)

                	 	
                  M-1

                
	
                  Exhibit
                    N-1:

                	 	
                  Form
                    of Annual Certification (Subservicer)

                	 	
                  N-1-1

                
	
                  Exhibit
                    N-2:

                	 	
                  Form
                    of Annual Certification (Trustee)

                	 	
                  N-2-1

                
	
                  Exhibit
                    O:

                	 	
                  Form
                    of Servicing Criteria to be Addressed in Assessment of
                    Compliance

                	 	
                  O-1

                
	
                  Exhibit
                    P:

                	 	
                  List
                    of Item 1119 Parties

                	 	
                  P-1

                
	
                  Exhibit
                    Q:

                	 	
                  Form
                    of Sarbanes-Oxley Certification

                	 	
                  Q-1

                

        

      

    

     

    THIS
      POOLING AND SERVICING AGREEMENT, dated as of May 1, 2007, among FIRST HORIZON
      ASSET SECURITIES INC., a Delaware corporation, as depositor (the “Depositor”),
      FIRST HORIZON HOME LOAN CORPORATION, a Kansas corporation, as master servicer
      (the “Master Servicer”), and THE BANK OF NEW YORK, a banking corporation
      organized under the laws of the State of New York, as trustee (the
“Trustee”).

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    WITNESSETH
      THAT

     

    In
      consideration of the mutual agreements herein contained, the parties hereto
      agree as follows:

     

    PRELIMINARY
      STATEMENT

     

    The
      Depositor is the owner of the Trust Fund that is hereby conveyed to the Trustee
      in return for the Certificates. The Trust Fund for federal income tax purposes
      will consist of a single REMIC, the “2007-3 REMIC.” The Certificates will
      represent the entire beneficial ownership interest in the Trust Fund. The
      Regular Certificates will represent “regular interests” in the 2007-3 REMIC. The
      Class A-R Certificates will represent the residual interest in the 2007-3 REMIC.
      The “latest possible maturity date” for federal income tax purposes of the
      2007-3 REMIC regular interests created hereby will be the Latest Possible
      Maturity Date.

     

    The
      following table sets forth characteristics of the Certificates, together with
      the minimum denominations and integral multiples in excess thereof in which
      such
      Classes shall be issuable (except that one Certificate of each Class of
      Certificates may be issued in a different amount and, in addition, one Residual
      Certificate representing the Tax Matters Person Certificate may be issued in
      a
      different amount):

     

    [Remainder
      of Page Intentionally Left Blank]

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    
      	
              Class
                Designation

            	 	
              Initial
                Class 

              Certificate
                Balance

            	 	
              Pass-Through
                Rate

            	 	
              Minimum
                Denominations

            	 	
              Integral
                Multiples in Excess Minimum

            	 	
              Final
                Scheduled Distribution Date(1)

            
	
              Class
                A-1

            	 	
              $50,000.00

            	 	
              6.00%

            	 	
              $1,000

            	 	
              $1,000

            	 	
              June
                2037

            
	
              Class
                A-2

            	 	
              $128,000,000.00

            	 	
              6.00%

            	 	
              $1,000

            	 	
              $1,000

            	 	
              June
                2037

            
	
              Class
                A-3

            	 	
              $
                12,063,000.00

            	 	
              6.00%

            	 	
              $1,000

            	 	
              $1,000

            	 	
              June
                2024

            
	
              Class
                A-4

            	 	
              $
                20,116.900.00

            	 	
              6.00%

            	 	
              $25,000

            	 	
              $1,000

            	 	
              June
                2037

            
	
              Class
                A-5

            	 	
              $6,787,000.00

            	 	
              6.00%

            	 	
              $25,000

            	 	
              $1,000

            	 	
              June
                2037

            
	
              Class
                A-PO

            	 	
              $1,593,623.89

            	 	
              (2)

            	 	
              $25,000

            	 	
              $1,000

            	 	
              June
                2037

            
	
              Class
                A-R

            	 	
              $100.00

            	 	
              6.00%

            	 	
              $100

            	 	
              N/A

            	 	
              June
                2037

            
	
              Class
                B-1

            	 	
              $3,605,000.00

            	 	
              6.00%

            	 	
              $100,000

            	 	
              $1,000

            	 	
              June
                2037

            
	
              Class
                B-2

            	 	
              $1,352,000.00

            	 	
              6.00%

            	 	
              $100,000

            	 	
              $1,000

            	 	
              June
                2037

            
	
              Class
                B-3

            	 	
              $676,000.00

            	 	
              6.00%

            	 	
              $100,000

            	 	
              $1,000

            	 	
              June
                2037

            
	
              Class
                B-4

            	 	
              $450,000.00

            	 	
              6.00%

            	 	
              $100,000

            	 	
              $1,000

            	 	
              June
                2037

            
	
              Class
                B-5

            	 	
              $338,000.00

            	 	
              6.00%

            	 	
              $100,000

            	 	
              $1,000

            	 	
              June
                2037

            
	
              Class
                B-6

            	 	
              $338,691.57

            	 	
              6.00%

            	 	
              $100,000

            	 	
              $1,000

            	 	
              June
                2037

            

    

     

    (1)
      The
      actual final payment on the Certificates could occur earlier or later than
      the
      Final Scheduled Distribution Date.

     

    (2)
      The
      Class A-PO Certificates are Principal Only Certificates and will not accrue
      interest.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    
      	
              Accretion
                Directed Certificates

            	 	
              The
                Class A-3 Certificates.

            
	 	 	 
	
              Accrual
                Certificates

            	 	
              The
                Class A-5 Certificates.

            
	 	 	 
	
              Accrual
                Components

            	 	
              None.

            
	 	 	 
	
              Book-Entry
                Certificates

            	 	
              All
                Classes of Certificates other than the Physical
                Certificates.

            
	 	 	 
	
              COFI
                Certificates

            	 	
              None.

            
	 	 	 
	
              Component
                Certificates

            	 	
              None.

            
	 	 	 
	
              Components

            	 	
              None.

            
	 	 	 
	
              Delay
                Certificates

            	 	
              All
                interest-bearing Classes of Certificates other than the Non-Delay
                Certificates, if any.

            
	 	 	 
	
              ERISA-Restricted
                Certificates

            	 	
              The
                Residual Certificates, Private Certificates and Certificates of any
                Class
                that no longer satisfy the applicable rating requirement of the
                Underwriters’ Exemption.

            
	 	 	 
	
              ERISA
                Restricted Yield Supplemented Certificates

            	 	
               

              None.

            
	 	 	 
	
              Floating
                Rate Certificates

            	 	
              None.

            
	 	 	 
	
              Inverse
                Floating Rate Certificates

            	 	
               

              None.

            
	
              LIBOR
                Certificates

            	 	
              None.

            
	 	 	 
	
              NAS
                Certificates

            	 	
              The
                Class A-4 Certificates.

            
	 	 	 
	
              Non-Delay
                Certificates

            	 	
              None.

            
	 	 	 
	
              Notional
                Amount Certificates

            	 	
              None.

            
	 	 	 
	
              Offered
                Certificates

            	 	
              All
                Classes of Certificates other than the Private
                Certificates.

            
	 	 	 
	
              PAC
                Certificates

            	 	
              None.

            
	 	 	 
	
              Physical
                Certificates

            	 	
              The
                Principal Only Certificates and the Residual
                Certificates.

            
	 	 	 
	
              Principal
                Only Certificates

            	 	
              The
                Class A-PO Certificates.

            
	 	 	 
	
              Private
                Certificates

            	 	
              The
                Class A-PO, Class B-4, Class B-5 and Class B-6
                Certificates.

            
	 	 	 
	
              Rating
                Agencies

            	 	
              Fitch
                and S&P; except for the purposes of the Class B-1, Class B-2, Class
                B-3, Class B-4 and Class B-5 Certificates, Fitch shall be the sole
                Rating
                Agency. The Class B-6 Certificates will not be rated.

            
	 	 	 
	
              Regular
                Certificates

            	 	
              All
                Classes of Certificates, other than the Residual
                Certificates.

            
	 	 	 
	
              Residual
                Certificates

            	 	
              The
                Class A-R Certificates.

            
	 	 	 
	
              Retail/Lottery
                Certificates

            	 	
              None.
                

            
	 	 	 
	
              Scheduled
                Certificates

            	 	
              None.

            
	 	 	 
	
              Senior
                Certificates

            	 	
              The
                Class A-1, Class A-2, Class A-3, Class A-4, Class A-5, Class A-PO
                and
                Class A-R Certificates.

            
	 	 	 

    

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    
      	
              Senior
                Mezzanine Certificates

            	 	
              None.

            
	 	 	 
	
              Subordinated
                Certificates

            	 	
              The
                Class B-1, Class B-2, Class B-3, Class B-4, Class B-5 and Class B-6
                Certificates.

            
	 	 	 
	
              Super
                Senior Certificates

            	 	
              None.

            
	 	 	 
	
              Support
                Classes

            	 	
              None.

            
	 	 	 
	
              TAC
                Certificates

            	 	
              None.
                

            
	 	 	 
	
              Underwriters

            	 	
              Credit
                Suisse Securities (USA) LLC
                and Lehman Brothers, Inc.

            

    

     

    With
      respect to any of the foregoing designations as to which the corresponding
      reference is “None,” all defined terms and provisions herein relating solely to
      such designations shall be of no force or effect, and any calculations herein
      incorporating references to such designations shall be interpreted without
      reference to such designations and amounts. Defined terms and provisions herein
      relating to statistical rating agencies not designated above as Rating Agencies
      shall be of no force or effect.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    
      ARTICLE
        I

    

    DEFINITIONS

     

    Whenever
      used in this Agreement, the following words and phrases, unless the context
      otherwise requires, shall have the following meanings:

     

    2007-3
      REMIC: The segregated pool of assets consisting of the Trust Fund.

     

    Accretion
      Directed Certificates: As specified in the Preliminary Statement. 

     

    Accretion
      Termination Date: For the class of Accrual Certificates, the earlier of (x)
      the
      Cross-over Date and (y) the Distribution Date on which the Class Certificate
      Balance of the Accretion Directed Certificates has been reduced to
      zero.

     

    Accrual
      Amount: For each Distribution Date through the Accretion Termination Date and
      each class of Accrual Certificates, an amount equal to the sum of (x) Accrued
      Certificate Interest in respect of such class of Accrual Certificates in
      accordance with clause (i) of Section 4.2(a), and (y) amounts allocable to
      such
      class of Accrual Certificates in accordance with clause (ii) of Section 4.2(a),
      in each case on such Distribution Date.

     

    Accrual
      Certificates: As specified in the Preliminary Statement.

     

    Accrued
      Certificate Interest: For any Class of Certificates entitled to distributions
      of
      interest for any Distribution Date, the interest accrued during the related
      Interest Accrual Period at the applicable Pass-Through Rate on the Class
      Certificate Balance of such Class of Certificates immediately prior to such
      Distribution Date, less such Class’ share of any Net Interest Shortfall,
      allocable between the outstanding Classes of Certificates based on the Accrued
      Certificate Interest otherwise distributable thereto.

     

    Additional
      Designated Information: As defined in Section 10.2.

     

    Adjusted
      Mortgage Rate: As to each Mortgage Loan, and at any time, the per annum rate
      equal to the Mortgage Rate less the Master Servicing Fee Rate.

     

    Adjusted
      Net Mortgage Rate: As to each Mortgage Loan, and at any time, the per annum
      rate
      equal to the Mortgage Rate less the related Expense Fee Rate.

     

    Advance:
      The payment required to be made by the Master Servicer with respect to any
      Distribution Date pursuant to Section 4.1, the amount of any such payment being
      equal to the aggregate of payments of principal and interest (net of the Master
      Servicing Fee and net of any net income in the case of any REO Property) on
      the
      Mortgage Loans that were due on the related Due Date and not received as of
      the
      close of business on the related Determination Date, less the aggregate amount
      of any such delinquent payments that the Master Servicer has determined would
      constitute a Nonrecoverable Advance if advanced.

     

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

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    Allocable
      Share: With respect to any Class of Subordinated Certificates on any
      Distribution Date, such Class’ pro rata share (based on the Class Certificate
      Balance of each Class entitled thereto) of each of the components of the
      Subordinated Optimal Principal Amount; provided that, solely for purposes of
      this definition, the Subordinated Optimal Principal Amount will be reduced
      by
      the amounts required to be distributed to the Class PO Certificates in respect
      of the Class PO Deferred Amount on such Distribution Date, and any such
      reduction in the Subordinate Optimal Principal Amount shall reduce the amounts
      calculated pursuant to clauses (1), (4), (2), (3) and (5) of the definition
      thereof, in that order, and the Class Certificate Balances of each Class of
      Subordinated Certificates will be reduced by such amounts in reverse order
      of
      priority until the respective Class Certificate Balances of each Class of
      Subordinated Certificates has been reduced to zero; provided further,
that,
      except
      as
      provided in this Agreement, no Subordinated Certificates (other than the Class
      of Subordinated Certificates with the highest priority of distribution) shall
      be
      entitled on any Distribution Date to receive distributions pursuant to clauses
      (2), (3) and (5) of the definition of Subordinated Optimal Principal Amount
      unless the Class Prepayment Distribution Trigger for such Class is satisfied
      for
      such Distribution Date.

     

    Alternative
      Title Product: Any
      one
      of the following: (i) Lien Protection Insurance issued by Integrated Loan
      Services or ATM Corporation of America, (ii) a Mortgage Lien Report issued
      by
      EPN Solutions/ACRAnet, (iii) a Property Plus Report issued by Rapid Refinance
      Service through SharperLending.com, or (iv) such other alternative title
      insurance product that the Seller utilizes in connection with its then current
      underwriting criteria.

     

    Amount
      Held for Future Distribution: As to any Distribution Date, the aggregate amount
      held in the Certificate Account at the close of business on the related
      Determination Date on account of (i) Principal Prepayments received after the
      related Prepayment Period and Liquidation Proceeds received in the month of
      such
      Distribution Date and (ii) all Scheduled Payments due after the Due
      Date.

     

    Appraised
      Value: With respect to any Mortgage Loan, the Appraised Value of the related
      Mortgaged Property shall be: (i) with respect to a Mortgage Loan other than
      a
      Refinancing Mortgage Loan, the lesser of (a) the value of the Mortgaged Property
      based upon the appraisal made at the time of the origination of such Mortgage
      Loan and (b) the sales price of the Mortgaged Property at the time of the
      origination of such Mortgage Loan; (ii) with respect to a Refinancing Mortgage
      Loan other than a Streamlined Documentation Mortgage Loan, the value of the
      Mortgaged Property based upon the appraisal made at the time of the origination
      of such Refinancing Mortgage Loan; and (iii) with respect to a Streamlined
      Documentation Mortgage Loan, (a) if the loan-to-value ratio with respect to
      the
      Original Mortgage Loan at the time of the origination thereof was 90% or less,
      the value of the Mortgaged Property based upon the appraisal made at the time
      of
      the origination of the Original Mortgage Loan and (b) if the loan-to-value
      ratio
      with respect to the Original Mortgage Loan at the time of the origination
      thereof was greater than 90%, the value of the Mortgaged Property based upon
      the
      appraisal (which may be a drive-by appraisal) made at the time of the
      origination of such Streamlined Documentation Mortgage Loan.

     

    Available
      Funds: With respect to any Distribution Date, an amount equal to the sum
      of:

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    
       

      
        	 	
                (a)

              	
                all
                  scheduled installments of interest, net of the Master Servicing
                  Fee, the
                  Trustee Fee, any expenses, reimbursements and indemnities payable
                  to the
                  Master Servicer, and any Retained Yield on such Distribution Date,
                  and all
                  scheduled installments of principal due in respect of the Mortgage
                  Loans
                  on the Due Date in the month in which the Distribution Date occurs
                  and
                  received before the related Determination Date, together with any
                  Advances
                  in respect thereof;

              

      

       

      
        	 	
                (b)

              	
                all
                  Insurance Proceeds, Liquidation Proceeds and Unanticipated Recoveries
                  received in respect of the Mortgage Loans during the calendar month
                  before
                  the Distribution Date, which in each case is net of unreimbursed
                  expenses
                  incurred in connection with a liquidation or foreclosure and unreimbursed
                  Advances, if any;

              

      

       

      
        	 	
                (c)

              	
                all
                  Principal Prepayments received in respect of the Mortgage Loans
                  during the
                  related Prepayment Period, plus interest received thereon, net
                  of any
                  Prepayment Interest Excess;

              

      

       

      
        	 	
                (d)

              	
                any
                  Compensating Interest in respect of Principal Prepayments in Full
                  received
                  in respect of the Mortgage Loans during the related Prepayment
                  Period (or,
                  in the case of the first Distribution Date, from the Cut-off Date);
                  and

              

      

       

      
        	 	
                (e)

              	
                any
                  Substitution Adjustment Amount or the Purchase Price for any Deleted
                  Mortgage Loan or a Mortgage Loan repurchased by the Seller or the
                  Master
                  Servicer as of such Distribution Date, reduced by amounts in reimbursement
                  for Advances previously made and other amounts that the Master
                  Servicer is
                  entitled to be reimbursed for out of the Certificate Account pursuant
                  to
                  this Agreement.

              

      

       

      Bankruptcy
        Code: The United States Bankruptcy Reform Act of 1978, as amended.

       

      Bankruptcy
        Coverage Termination Date: The date on which the Bankruptcy Loss Coverage
        Amount
        is reduced to zero.

       

      Bankruptcy
        Loss: With respect to any Mortgage Loan, a Deficient Valuation or Debt Service
        Reduction; provided, however, that a Bankruptcy Loss shall not be deemed
        a
        Bankruptcy Loss hereunder so long as the Master Servicer has notified the
        Trustee in writing that the Master Servicer is diligently pursuing any remedies
        that may exist in connection with the related Mortgage Loan and either (A)
        the
        related Mortgage Loan is not in default with regard to payments due thereunder
        or (B) delinquent payments of principal and interest under the related Mortgage
        Loan and any related escrow payments in respect of such Mortgage Loan are
        being
        advanced on a current basis by the Master Servicer, in either case without
        giving effect to any Debt Service Reduction or Deficient Valuation.

       

      Bankruptcy
        Loss Coverage Amount: As of any Determination Date, the Bankruptcy Loss Coverage
        Amount shall equal the Initial Bankruptcy Coverage Amount as reduced by (i)
        the
        aggregate amount of Bankruptcy Losses allocated to the Certificates since
        the
        Cut-off Date and (ii) any permissible reductions in the Bankruptcy Loss Coverage
        Amount as evidenced by a letter of each Rating Agency to the Trustee to the
        effect that any such reduction will not result in a downgrading of the then
        current ratings assigned to the Classes of Certificates rated by it. As of
        any
        Distribution Date on or after the Cross-over Date, the Bankruptcy Loss Coverage
        Amount will be zero.

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

       

      Blanket
        Mortgage: The mortgage or mortgages encumbering the Cooperative
        Property.

       

      Book-Entry
        Certificates: As specified in the Preliminary Statement.

       

      Business
        Day: Any day other than (i) a Saturday or a Sunday, or (ii) a day on which
        banking institutions in the City of Dallas, or the State of Texas or the
        city in
        which the Corporate Trust Office of the Trustee is located are authorized
        or
        obligated by law or executive order to be closed.

       

      Certificate:
        Any one of the Certificates executed by the Trustee in substantially the
        forms
        attached hereto as exhibits.

       

      Certificate
        Account: The separate Eligible Account or Accounts created and maintained
        by the
        Master Servicer pursuant to Section 3.5 with a depository institution in
        the
        name of the Master Servicer for the benefit of the Trustee on behalf of
        Certificateholders and designated “First Horizon Home Loan Corporation in trust
        for the registered holders of First Horizon Asset Securities Inc. Mortgage
        Pass-Through Certificates, Series 2007-3.”

       

      Certificate
        Owner: With respect to a Book-Entry Certificate, the Person who is the
        beneficial owner of such Book-Entry Certificate.

       

      Certificate
        Principal Balance: With respect to any Certificate and as of any Distribution
        Date, the principal balance of such Certificate on the date of the initial
        issuance of such Certificate, as reduced by:

       

      
        	 	
                (a)

              	
                all
                  amounts distributed on previous Distribution Dates on such Certificate
                  on
                  account of principal,

              

      

       

      
        	 	
                (b)

              	
                the
                  principal portion of all Realized Losses previously allocated to
                  such
                  Certificate, and

              

      

       

      
        	 	
                (c)

              	
                in
                  the case of a Subordinated Certificate, such Certificate’s pro rata share,
                  if any, of the Subordinated Certificate Writedown Amount for previous
                  Distribution Dates.

              

      

       

      Certificate
        Register: The register maintained pursuant to Section 5.2 hereof.

       

      Certificateholder
        or Holder: The person in whose name a Certificate is registered in the
        Certificate Register, except that, solely for the purpose of giving any consent
        pursuant to this Agreement, any Certificate registered in the name of the
        Depositor or the Seller or any affiliate or agent of the Depositor or the
        Seller
        shall be deemed not to be Outstanding and the Percentage Interest evidenced
        thereby shall not be taken into account in determining whether the requisite
        amount of Percentage Interests necessary to effect such consent has been
        obtained; provided, however, that if any such Person (including the Depositor)
        owns 100% of the Percentage Interests evidenced by a Class of Certificates,
        such
        Certificates shall be deemed to be Outstanding for purposes of any provision
        hereof that requires the consent of the Holders of Certificates of a particular
        Class as a condition to the taking of any action hereunder. The Trustee is
        entitled to rely conclusively on a certification of the Depositor or any
        affiliate of the Depositor in determining which Certificates are registered
        in
        the name of an affiliate of the Depositor.

       

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

       

      Certification
        Party: As defined in Section 10.5.

       

      Certifying
        Person: As defined in Section 10.5.

       

      Class:
        All Certificates bearing the same class designation as set forth in the
        Preliminary Statement.

       

      Class
        Certificate Balance: With respect to any Class of Certificates and as of
        any
        Distribution Date the aggregate of the Certificate Principal Balances of
        all
        Certificates of such Class as of such date, plus the amount of any Unanticipated
        Recoveries added to the Class Certificate Balance of such Class of Certificates
        pursuant to Section 4.2(g).

       

      Class
        PO
        Certificates: The Class
        A-PO Certificates.

       

      Class
        PO
        Deferred Amount: With
        respect to the Class PO Certificates and any Distribution Date through the
        Cross-over Date, the sum of (1) the PO Percentage of the principal portion
        of
        Non-Excess Losses on a Discount Mortgage Loan and (2) all amounts previously
        allocated to the Class PO Certificates in respect of such losses and not
        distributed to the Class PO Certificates on prior Distribution
        Dates.

       

      Class
        PO
        Deferred Payment Writedown Amount: For any Distribution Date and the Class
        PO
        Certificates, the amount, if any, distributed on such date in respect of
        the
        Class PO Deferred Amount pursuant to Section 4.2(a)(iv) herein. The Subordinated
        Certificate Writedown Amount and the Class PO Deferred Payment Writedown
        Amount
        will be allocated to the Classes of Subordinated Certificates in inverse
        order
        of priority, until the Class Certificate Balance of each such Class has been
        reduced to zero. 

       

      Class
        PO
        Principal Distribution Amount: With respect to each Distribution Date and
        the
        Class PO Certificates, an amount equal to the sum of:

       

      (1) the
        PO
        Percentage of all Scheduled Payments of principal due on each Mortgage Loan
        on
        the first day of the month in which the Distribution Date occurs, as specified
        in the amortization schedule at the time applicable thereto, after adjustment
        for previous principal prepayments and the principal portion of Debt Service
        Reductions after the Bankruptcy Loss Coverage Amount has been reduced to
        zero,
        but before any adjustment to such amortization schedule by reason of any
        other
        bankruptcy or similar proceeding or any moratorium or similar waiver or grace
        period;

       

      (2) the
        PO
        Percentage of the Stated Principal Balance of each Mortgage Loan which was
        the
        subject of a Principal Prepayment in Full received by the Master Servicer
        during
        the related Prepayment Period;

       

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

       

      (3) the
        PO
        Percentage of the sum of (a) all partial Principal Prepayments for each Mortgage
        Loan received by the Master Servicer during the related Prepayment Period
        and
        (b) all Unanticipated Recoveries in respect of each Mortgage Loan received
        by
        the Master Servicer during the calendar month preceding such Distribution
        Date;

       

      (4) the
        PO
        Percentage of the sum of (a) the net Liquidation Proceeds allocable to
        principal on each Mortgage Loan which became a Liquidated Mortgage Loan during
        the related Prepayment Period, other than Mortgage Loans described in
        clause (b), and (b) the principal balance of each Mortgage Loan that
        was purchased by a private mortgage insurer during the related Prepayment
        Period
        as an alternative to paying a claim under the related mortgage insurance
        policy;
        and

       

      (5) the
        PO
        Percentage of the sum of (a) the Stated Principal Balance of each Mortgage
        Loan which was repurchased by the Seller in connection with such Distribution
        Date, and (b) the difference, if any, between the Stated Principal Balance
        of a
        Mortgage Loan that has been replaced by the Seller with a Substitute Mortgage
        Loan pursuant to this Agreement in connection with such Distribution Date
        and
        the Stated Principal Balance of such Substitute Mortgage Loan.

       

      For
        purposes of clauses (2) and (5) above, the Stated Principal Balance of a
        Mortgage Loan will be reduced by the amount of any Deficient Valuation that
        occurred prior to the reduction of the Bankruptcy Loss Coverage Amount to
        zero.

       

      Class
        Prepayment Distribution Trigger: For a Class of Subordinated Certificates
        (other
        than the Class of Subordinated Certificates with the highest priority of
        distribution), a trigger that is satisfied on any Distribution Date on which
        a
        fraction (expressed as a percentage), the numerator of which is the aggregate
        of
        the Class Certificate Balance of such Class and each Class subordinate thereto,
        if any, and the denominator of which is the Pool Principal Balance with respect
        to such Distribution Date, equals or exceeds such percentage calculated as
        of
        the Closing Date.

       

      Closing
        Date: May 30, 2007.

       

      Code:
        The
        Internal Revenue Code of 1986, including any successor or amendatory
        provisions.

       

      COFI:
        Not
        applicable.

       

      COFI
        Certificates: Not applicable.

       

      Compensating
        Interest: As to any Distribution Date and any Principal Prepayment in respect
        of
        a Mortgage Loan that is received during the period from the sixteenth day
        of the
        month (or, in the case of the first Distribution Date, from the Cut-off Date)
        prior to the month of such Distribution Date through the last day of such
        month,
        an additional payment made by the Master Servicer, to the extent funds are
        available from the Master Servicing Fee, equal to the amount of interest
        at the
        Adjusted Net Mortgage Rate for that Mortgage Loan from the date of the
        prepayment to the related Due Date; provided that the aggregate of all such
        payments as to the Mortgage Loans shall not exceed 0.0083% of the Pool Principal
        Balance as of the related Determination Date, and provided further that if
        a
        partial Principal Prepayment is applied on or after the first day of the
        month
        following the month of receipt, no additional payment is required for such
        Principal Prepayment.

       

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

       

      Components:
        Not applicable.

       

      Component
        Certificates: Not applicable.

       

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

       

      Coop
        Shares: Shares issued by a Cooperative Corporation.

       

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

       

      Cooperative
        Property: The real property and improvements owned by the Cooperative
        Corporation, including the allocation of individual dwelling units to the
        holders of the Coop Shares of the Cooperative Corporation.

       

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

       

      Corporate
        Trust Office: The designated office of the Trustee in the State of New York
        at
        which at any particular time its corporate trust business with respect to
        this
        Agreement shall be administered, which office at the date of the execution
        of
        this Agreement is located at The Bank of New York, 101 Barclay Street, 4W,
        New
        York, New York 10286 (Attn: Corporate Trust Administration - First Horizon
        Asset
        Securities Inc. Series 2007-3), facsimile no. (212) 815-3986, and which is
        the
        address to which notices to and correspondence with the Trustee should be
        directed.

       

      Cross-over
        Date: The Distribution Date on which the Class Certificate Balance of each
        Class
        of Subordinated Certificates has been reduced to zero.

       

      Custodial
        Agreement: The Custodial Agreement dated as of May 30, 2007 by and among
        the
        Trustee, the Master Servicer and the Custodian.

       

      Custodian:
        First Tennessee Bank National Association, a national banking association,
        and
        its successors and assigns, as custodian under the Custodial
        Agreement.

       

      Cut-off
        Date: May 1, 2007.

       

      Cut-off
        Date Pool Principal Balance: $225,320,315.46.

       

      Cut-off
        Date Principal Balance: As to any Mortgage Loan, the Stated Principal Balance
        thereof as of the close of business on the Cut-off Date.

       

      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

       

      Debt
        Service Reduction: With respect to any Mortgage Loan, a reduction by a court
        of
        competent jurisdiction in a proceeding under the Bankruptcy Code in the
        Scheduled Payment for such Mortgage Loan which became final and non-appealable,
        except such a reduction resulting from a Deficient Valuation or any reduction
        that results in a permanent forgiveness of principal.

       

      Defective
        Mortgage Loan: Any Mortgage Loan which is required to be repurchased pursuant
        to
        Section 2.2 or 2.3.

       

      Deficient
        Valuation: With respect to any Mortgage Loan, a valuation by a court of
        competent jurisdiction of the Mortgaged Property in an amount less than the
        then-outstanding indebtedness under the Mortgage Loan, or any reduction in
        the
        amount of principal to be paid in connection with any Scheduled Payment that
        results in a permanent forgiveness of principal, which valuation or reduction
        results from an order of such court which is final and non-appealable in
        a
        proceeding under the Bankruptcy Code.

       

      Definitive
        Certificates: Any Certificate evidenced by a Physical Certificate and any
        Certificate issued in lieu of a Book-Entry Certificate pursuant to Section
        5.2(e).

       

      Delay
        Certificates: As specified in the Preliminary Statement.

       

      Delay
        Delivery Mortgage Loans: The Mortgage Loans for which all or a portion of
        a
        related Mortgage File is not delivered to the Trustee on the Closing Date.
        The
        number of Delay Delivery Mortgage Loans shall not exceed 25% of the aggregate
        number of Mortgage Loans as of the Closing Date.

       

      Deleted
        Mortgage Loan: As defined in Section 2.3(b) hereof.

       

      Denomination:
        With respect to each Certificate, the amount set forth on the face thereof
        as
        the “Initial Certificate Balance of this Certificate” or the Percentage Interest
        appearing on the face thereof.

       

      Depositor:
        First Horizon Asset Securities Inc., a Delaware corporation, or its successor
        in
        interest.

       

      Depository:
        The initial Depository shall be The Depository Trust Company, the nominee
        of
        which is CEDE & Co., as the registered Holder of the Book-Entry
        Certificates. The Depository shall at all times be a “clearing corporation” as
        defined in Section 8-102(a)(5) of the Uniform Commercial Code of the State
        of
        New York.

       

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

       

      Determination
        Date: As to any Distribution Date, the earlier of (i) the third Business
        Day
        after the 15th day of each month, and (ii) the second Business Day prior
        to the
        related Distribution Date.

       

      
        
          
          

        

        
          15

          
            

          

        

        
          
          

        

      

       

      Discount
        Mortgage Loan: Any Mortgage Loan with an Adjusted Net Mortgage Rate of less
        than
        6.00%.

       

      Distribution
        Account: The separate Eligible Account created and maintained by the Trustee
        pursuant to Section 3.5 in the name of the Trustee for the benefit of the
        Certificateholders and designated “The Bank of New York, in trust for registered
        Holders of First Horizon Asset Securities Inc. Mortgage Pass-Through
        Certificates, Series 2007-3.” Funds in the Distribution Account shall be held in
        trust for the Certificateholders for the uses and purposes set forth in this
        Agreement.

       

      Distribution
        Account Deposit Date: As to any Distribution Date, 1:30 p.m. Central time
        on the
        Business Day immediately preceding such Distribution Date.

       

      Distribution
        Date: The 25th day of each calendar month after the initial issuance of the
        Certificates, or if such 25th day is not a Business Day, the next succeeding
        Business Day, commencing in June 2007.

       

      Due
        Date:
        With respect to any Distribution Date, the first day of the month in which
        the
        related Distribution Date occurs.

       

      EDGAR:
        The SEC’s Electronic Data Gathering, Analysis and Retrieval system.

       

      Eligible
        Account: Any of (i) an account or accounts maintained with a federal or state
        chartered depository institution or trust company the short-term unsecured
        debt
        obligations of which (or, in the case of a depository institution or trust
        company that is the principal subsidiary of a holding company, the debt
        obligations of such holding company) have the highest short-term ratings
        of each
        Rating Agency at the time any amounts are held on deposit therein, or (ii)
        an
        account or accounts in a depository institution or trust company in which
        such
        accounts are insured by the FDIC or the SAIF (to the limits established by
        the
        FDIC or the SAIF, as applicable) and the uninsured deposits in which accounts
        are otherwise secured such that, as evidenced by an Opinion of Counsel delivered
        to the Trustee and to each Rating Agency, the Certificateholders have a claim
        with respect to the funds in such account or a perfected first priority security
        interest against any collateral (which shall be limited to Permitted
        Investments) securing such funds that is superior to claims of any other
        depositors or creditors of the depository institution or trust company in
        which
        such account is maintained, or (iii) a trust account or accounts maintained
        with
        (a) the trust department of a federal or state chartered depository institution
        or (b) a trust company, acting in its fiduciary capacity. Eligible Accounts
        may
        bear interest, and may include, if otherwise qualified under this definition,
        accounts maintained with the Trustee.

       

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

       

      ERISA-Qualifying
        Underwriting: With respect to any ERISA-Restricted Certificate, a best efforts
        or firm commitment underwriting or private placement that meets the requirements
        of the Underwriters’ Exemption.

       

      ERISA-Restricted
        Certificate: As specified in the Preliminary Statement.

       

      
        
          
          

        

        
          16

          
            

          

        

        
          
          

        

      

       

      ERISA
        Restricted Yield Supplemented Certificates: Not applicable.

       

      Escrow
        Account: The Eligible Account or Accounts established and maintained pursuant
        to
        Section 3.6(a) hereof.

       

      Event
        of
        Default: As defined in Section 7.1 hereof.

       

      Excess
        Loss: The amount of any (i) Fraud Loss realized after the Fraud Loss Coverage
        Termination Date, (ii) Special Hazard Loss realized after the Special Hazard
        Coverage Termination Date or (iii) Deficient Valuation realized after the
        Bankruptcy Coverage Termination Date.

       

      Excess
        Proceeds: With respect to any Liquidated Mortgage Loan, the amount, if any,
        by
        which the sum of any Liquidation Proceeds, Insurance Proceeds and/or
        Unanticipated Recoveries in respect of such Mortgage Loan received in the
        calendar month in which such Mortgage Loan became a Liquidated Mortgage Loan,
        net of any amounts previously reimbursed to the Master Servicer as
        Nonrecoverable Advance(s) with respect to such Mortgage Loan pursuant to
        Section
        3.8(a)(iii), exceeds (i) the unpaid principal balance of such Liquidated
        Mortgage Loan as of the Due Date in the month in which such Mortgage Loan
        became
        a Liquidated Mortgage Loan plus (ii) accrued interest at the Mortgage Rate
        from
        the Due Date as to which interest was last paid or advanced (and not reimbursed)
        to Certificateholders up to the Due Date applicable to the Distribution Date
        immediately following the calendar month during which such liquidation
        occurred.

       

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

       

      Exchange
        Act Reports: Any reports on Form 10-D, Form 8-K and Form 10-K required to
        be
        filed by the Depositor with respect to the Trust Fund under the Exchange
        Act.

       

      Expense
        Fee Rate: As to each Mortgage Loan, the sum of the related Master Servicing
        Fee
        Rate and the Trustee Fee Rate.

       

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

       

      FHLMC:
        The Federal Home Loan Mortgage Corporation, a corporate instrumentality of
        the
        United States created and existing under Title III of the Emergency Home
        Finance
        Act of 1970, as amended, or any successor thereto.

       

      Final
        Scheduled Distribution Date: For each Certificate, as specified in the
        Preliminary Statement.

       

      FIRREA:
        The Financial Institutions Reform, Recovery, and Enforcement Act of
        1989.

       

      First
        Horizon: First Horizon Home Loan Corporation, a Kansas corporation and an
        indirect wholly owned subsidiary of First Horizon National Corporation, a
        Tennessee corporation.

       

      
        
          
          

        

        
          17

          
            

          

        

        
          
          

        

      

       

      Fitch:
        Fitch Ratings and its successors and/or assigns. If Fitch is designated as
        a
        Rating Agency in the Preliminary Statement, for purposes of Section 11.5(b)
        the
        address for notices to Fitch shall be Fitch, Inc., One State Street Plaza,
        New
        York, New York 10004, Attention: Residential Mortgage Surveillance Group,
        or
        such other address as Fitch may hereafter furnish to the Depositor and the
        Master Servicer.

       

      Floating
        Rate Certificates: Not applicable.

       

      FNMA:
        The
        Federal National Mortgage Association, a federally chartered and privately
        owned
        corporation organized and existing under the Federal National Mortgage
        Association Charter Act, or any successor thereto.

       

      Form
        10-D
        Disclosure Item: With respect to any Person, any material litigation or
        governmental proceedings pending against such Person, or against any of the
        Trust Fund, the Depositor, the Trustee, any co-trustee, the Master Servicer
        or
        any Subservicer that is material to the Certificateholders if such Person,
        as
        applicable, has actual knowledge thereof.

       

      Form
        10-K
        Disclosure Item: With respect to any Person, (a) any Form 10-D Disclosure
        Item,
        and (b) any affiliations or relationships between such Person and any Item
        1119
        Party other than the Depositor, the Master Servicer or any affiliate of
        either.

       

      Fraud
        Loan: A Liquidated Mortgage Loan as to which a Fraud Loss has
        occurred.

       

      Fraud
        Loss Coverage Amount: As of the Closing Date, $6,759,609. As of any Distribution
        Date from the first anniversary of the Cut-off Date and prior to the third
        anniversary of the Cut-off Date, the Fraud Loss Coverage Amount will equal
        $4,506,406 minus the aggregate amount of Fraud Losses that would have been
        allocated to the Subordinated Certificates in the absence of the Loss Allocation
        Limitation since the Cut-off Date. As of any Distribution Date from the third
        anniversary of the Cut-off Date and prior to the fifth anniversary of the
        Cut-off Date, the Fraud Loss Coverage Amount will equal $2,253,203 minus
        the
        aggregate amount of Fraud Losses that would have been allocated to the
        Subordinated Certificates in the absence of the Loss Allocation Limitation
        since
        the Cut-off Date. As of any Distribution Date on or after the earlier of
        the
        Cross-over Date or the fifth anniversary, the Fraud Loss Coverage Amount
        shall
        be zero.

       

      Fraud
        Loss Coverage Termination Date: The date on which the Fraud Loss Coverage
        Amount
        is reduced to zero.

       

      Fraud
        Losses: Realized Losses on Mortgage Loans as to which a loss is sustained
        by
        reason of a default arising from fraud, dishonesty or misrepresentation in
        connection with the related Mortgage Loan, including a loss by reason of
        the
        denial of coverage under any related Primary Insurance Policy because of
        such
        fraud, dishonesty or misrepresentation.

       

      FTBNA:
        First Tennessee Bank National Association, a national banking
        association.

       

      Indirect
        Participant: A broker, dealer, bank or other financial institution or other
        Person that clears through or maintains a custodial relationship with a
        Depository Participant.

       

      
        
          
          

        

        
          18

          
            

          

        

        
          
          

        

      

       

      Initial
        Bankruptcy Coverage Amount: $150,000.

       

      Initial
        Component Balance: Not applicable.

       

      Insurance
        Policy: With respect to any Mortgage Loan included in the Trust Fund, any
        insurance policy, including all riders and endorsements thereto in effect,
        including any replacement policy or policies for any Insurance
        Policies.

       

      Insurance
        Proceeds: Proceeds paid by an insurer pursuant to any Insurance Policy, in
        each
        case other than any amount included in such Insurance Proceeds (a) in respect
        of
        Insured Expenses, (b) that is applied to the restoration of the related
        Mortgaged Property, or (c) that is released to the Mortgagor in accordance
        with
        the Master Servicer’s normal servicing procedures.

       

      Insured
        Expenses: Expenses covered by an Insurance Policy or any other insurance
        policy
        with respect to the Mortgage Loans.

       

      Interest
        Accrual Period: With respect to each Class of Delay Certificates and any
        Distribution Date, the calendar month prior to the month of such Distribution
        Date. With respect to any Non-Delay Certificates and any Distribution Date,
        the
        one month period commencing on the 25th day of the month preceding the month
        in
        which such Distribution Date occurs and ending on the 24th day of the month
        in
        which such Distribution Date occurs.

       

      Inverse
        Floating Rate Certificates: Not applicable.

       

      Item
        1119
        Party: The Depositor, the Seller, the Master Servicer, the Trustee, any
        Subservicer, any originator identified in the Prospectus Supplement and any
        other material transaction party, as identified in Exhibit P hereto, as updated
        pursuant to Section 10.4.

       

      Latest
        Possible Maturity Date: As to each Class of Certificates, the Distribution
        Date
        following the third anniversary of the scheduled maturity date of the Mortgage
        Loan having the latest scheduled maturity date as of the Cut-off Date.

       

      Lender
        PMI Mortgage Loan: Not applicable.

       

      LIBOR
        Certificates: Not applicable.

       

      Limited
        Exchange Act Reporting Obligations: The obligations of the Master Servicer
        under
        Section 3.16(b), Section 8.7 and Section 8.9 with respect to notice and
        information to be provided to the Depositor and Article X (except Section
        10.7(a)(i) and (ii)).

       

      Liquidated
        Mortgage Loan: With respect to any Distribution Date, a defaulted Mortgage
        Loan
        (including any REO Property) which was liquidated in the calendar month
        preceding the month of such Distribution Date and as to which the Master
        Servicer has determined (in accordance with this Agreement) that it has received
        all amounts it expects to receive in connection with the liquidation of such
        Mortgage Loan, including the final disposition of an REO Property.

       

      
        
          
          

        

        
          19

          
            

          

        

        
          
          

        

      

       

      Liquidation
        Proceeds: All cash amounts, other than Insurance Proceeds and Unanticipated
        Recoveries, received in connection with the partial or complete liquidation
        of
        defaulted Mortgage Loans, whether through trustee’s sale, foreclosure sale or
        otherwise or amounts received in connection with any condemnation or partial
        release of a Mortgaged Property and any other proceeds received in connection
        with an REO Property, less the sum of related unreimbursed Master Servicing
        Fees, Servicing Advances and Advances.

       

      Loan-to-Value
        Ratio: With respect to any Mortgage Loan and as of any date of determination,
        the fraction (expressed as a percentage) the numerator of which is the principal
        balance of the related Mortgage Loan at such date of determination and the
        denominator of which is the Appraised Value of the related Mortgaged
        Property.

       

      Loss
        Allocation Limitation: As defined in Section 4.4(g).

       

      Lost
        Mortgage Note: Any Mortgage Note, the original of which was permanently lost
        or
        destroyed and has not been replaced.

       

      Maintenance:
        With respect to any Cooperative Unit, the rent paid by the Mortgagor to the
        Cooperative Corporation pursuant to the Proprietary Lease.

       

      Majority
        in Interest: As to any Class of Regular Certificates, the Holders of
        Certificates of such Class evidencing, in the aggregate, at least 51% of
        the
        Percentage Interests evidenced by all Certificates of such Class.

       

      Master
        Servicer: First Horizon Home Loan Corporation, a Kansas corporation, and
        its
        successors and assigns, in its capacity as master servicer
        hereunder.

       

      Master
        Servicer Advance Date: As to any Distribution Date, 1:30 p.m. Central time
        on
        the Business Day immediately preceding such Distribution Date.

       

      Master
        Servicing Fee: As to each Mortgage Loan and any Distribution Date, an amount
        payable out of each full payment of interest received on such Mortgage Loan
        and
        equal to one-twelfth of the Master Servicing Fee Rate multiplied by the Stated
        Principal Balance of such Mortgage Loan as of the Due Date in the month of
        such
        Distribution Date (prior to giving effect to any Scheduled Payments due on
        such
        Mortgage Loan on such Due Date), subject to reduction as provided in Section
        3.14.

       

      Master
        Servicing Fee Rate: For each Mortgage Loan a per annum rate equal to 0.244%.
        

       

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

       

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

       

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

       

      
        
          
          

        

        
          20

          
            

          

        

        
          
          

        

      

       

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

       

      MLPA:
        The
        Mortgage Loan Purchase Agreement dated as of May 30, 2007, by and between
        First
        Horizon Home Loan Corporation, as seller, and First Horizon Asset Securities
        Inc., as purchaser, as related to the transfer, sale and conveyance of the
        Mortgage Loans.

       

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

       

      Monthly
        Statement: The statement delivered to the Certificateholders pursuant to
        Section
        4.6.

       

      Moody’s:
        Moody’s Investors Service, Inc. and its successors and/or assigns. If Moody’s is
        designated as a Rating Agency in the Preliminary Statement, for purposes
        of
        Section 11.5(b) the address for notices to Moody’s shall be Moody’s Investors
        Service, Inc., 99 Church Street, New York, New York 10007, Attention:
        Residential Pass-Through Monitoring, or such other address as Moody’s may
        hereafter furnish to the Depositor or the Master Servicer.

       

      Mortgage:
        The mortgage, deed of trust or other instrument creating a first lien on
        an
        estate in fee simple or leasehold interest in real property securing a Mortgage
        Note.

       

      Mortgage
        File: The mortgage documents listed in Section 2.1(b) hereof pertaining to
        a
        particular Mortgage Loan and any additional documents delivered to the Trustee
        to be added to the Mortgage File pursuant to this Agreement.

       

      Mortgage
        Loan Schedule: The list of Mortgage Loans (as from time to time amended by
        the
        Master Servicer to reflect the addition of Substitute Mortgage Loans and
        the
        deletion of Deleted Mortgage Loans pursuant to the provisions of this Agreement)
        transferred to the Trustee as part of the Trust Fund and from time to time
        subject to this Agreement, attached hereto as Schedule I, setting forth the
        following information with respect to each Mortgage Loan:

       

      
        	 	
                (1)

              	
                the
                  loan number;

              

      

       

      
        	 	
                (2)

              	
                the
                  Mortgagor’s name and the street address of the Mortgaged Property,
                  including the zip code;

              

      

       

      
        	 	
                (3)

              	
                the
                  maturity date;

              

      

       

      
        	 	
                (4)

              	
                the
                  original principal balance;

              

      

       

      
        	 	
                (5)

              	
                the
                  Cut-off Date Principal Balance;

              

      

       

      
        	 	
                (6)

              	
                the
                  first payment date of the Mortgage
                  Loan;

              

      

       

      
        	 	
                (7)

              	
                the
                  Scheduled Payment in effect as of the Cut-off
                  Date;

              

      

       

      
        	 	
                (8)

              	
                the
                  Loan-to-Value Ratio at origination;

              

      

       

      
        
          
          

        

        
          21

          
            

          

        

        
          
          

        

      

       

      
        	 	
                (9)

              	
                a
                  code indicating whether the residential dwelling at the time of
                  origination was represented to be
                  owner-occupied;

              

      

       

      
        	 	
                (10)

              	
                a
                  code indicating whether the residential dwelling is either (a)
                  a detached
                  single family dwelling (b) a dwelling in a de minimis PUD, (c)
                  a
                  condominium unit or PUD (other than a de minimis PUD), (d) a two-to-four
                  unit residential property or (e) a Cooperative
                  Unit;

              

      

       

      
        	 	
                (11)

              	
                the
                  Mortgage Rate;

              

      

       

      
        	 	
                (12)

              	
                the
                  purpose for the Mortgage Loan;

              

      

       

      
        	 	
                (13)

              	
                the
                  type of documentation program pursuant to which the Mortgage Loan
                  was
                  originated;

              

      

       

      
        	 	
                (14)

              	
                the
                  Master Servicing Fee for the Mortgage Loan;
                  and

              

      

       

      
        	 	
                (15)

              	
                a
                  code indicating whether the Mortgage Loan is a MERS Mortgage
                  Loan.

              

      

       

      Such
        schedule shall also set forth the total of the amounts described under (4)
        and
        (5) above for all of the Mortgage Loans.

       

      Mortgage
        Loans: Such of the mortgage loans transferred and assigned to the Trustee
        pursuant to the provisions hereof as from time to time are held as a part
        of the
        Trust Fund (including any REO Property), the mortgage loans so held being
        identified in the Mortgage Loan Schedule, notwithstanding foreclosure or
        other
        acquisition of title of the related Mortgaged Property.

       

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

       

      Mortgage
        Pool: The aggregate of the Mortgage Loans identified in the Mortgage Loan
        Schedule.

       

      Mortgage
        Rate: The annual rate of interest borne by a Mortgage Note from time to time,
        net of any insurance premium charged by the mortgagee to obtain or maintain
        any
        Primary Insurance Policy.

       

      Mortgaged
        Property: The underlying property securing a Mortgage Loan, which, with respect
        to a Cooperative Loan, is the related Coop Shares and Proprietary
        Lease.

       

      Mortgagor:
        The obligor(s) on a Mortgage Note.

       

      NAS
        Certificates: As specified in the Preliminary Statement.

       

      NAS
        Distribution Percentage: 0% through the Distribution Date in May 2012; 30%
        of
        the applicable NAS Percentage thereafter through the Distribution Date in
        May
        2013; 40% of the applicable NAS Percentage thereafter through the Distribution
        Date in May 2014; 60% of the applicable NAS Percentage thereafter through
        the
        Distribution Date in May 2015; 80% of the applicable NAS Percentage thereafter
        through the Distribution Date in May 2016; and 100% of the applicable NAS
        Percentage thereafter.

       

      
        
          
          

        

        
          22

          
            

          

        

        
          
          

        

      

       

      NAS
        Percentage: For any Distribution Date, the lesser of (x) 100% and (y) the
        percentage (carried to six decimal places) obtained by dividing (1) the Class
        Certificate Balance of the NAS Certificates immediately preceding such
        Distribution Date by (2) the Pool Principal Balance (excluding the PO Percentage
        of the principal balance of each Discount Mortgage Loan included therein)
        for
        such Distribution Date.

       

      NAS
        Principal Distribution Amount: For any Distribution Date, the total of the
        amounts described in clauses (1) through (5) of the definition of Senior
        Optimal
        Principal Amount (determined without the application of the related Senior
        Percentage and Senior Prepayment Percentage, as applicable) for such
        Distribution Date, multiplied by the NAS Distribution Percentage for such
        Distribution Date. 

       

      Net
        Interest Shortfall: For any Distribution Date, the sum of (a) the amount
        of
        interest which would otherwise have been received for any Mortgage Loan that
        was
        the subject of (x) a Relief Act Reduction or (y) a Special Hazard Loss, Fraud
        Loss, or Deficient Valuation, after the exhaustion of the respective amounts
        of
        coverage for those types of losses provided by the Subordinated Certificates;
        and (b) any Net Prepayment Interest Shortfalls.

       

      Net
        Prepayment Interest Shortfalls: As to any Distribution Date, the amount by
        which
        the aggregate of Prepayment Interest Shortfalls in respect of the Mortgage
        Loans
        during the related Prepayment Period exceeds an amount equal to the Compensating
        Interest paid in respect of such Mortgage Loans, if any, for such Distribution
        Date.

       

      Non-Delay
        Certificates: As specified in the Preliminary Statement.

       

      Non-Discount
        Mortgage Loan: Any Mortgage Loan with an Adjusted Net Mortgage Rate that
        is
        equal to or greater than 6.00% per annum. 

       

      Non-Excess
        Loss: Any Realized Loss other than an Excess Loss.

       

      Non-PO
        Percentage: (a) With respect to a Discount Mortgage Loan, the fraction,
        expressed as a percentage equal to the NMR divided by 6.00%, and (b) with
        respect to each Non-Discount Mortgage Loan, 100%.

       

      Nonrecoverable
        Advance: Any portion of an Advance previously made or proposed to be made
        by the
        Master Servicer that, in the good faith judgment of the Master Servicer,
        will
        not be ultimately recoverable by the Master Servicer from the related Mortgagor,
        related Liquidation Proceeds or otherwise.

       

      Notice
        of
        Final Distribution: The notice to be provided pursuant to Section 9.2 to
        the
        effect that final distribution on any of the Certificates shall be made only
        upon presentation and surrender thereof.

       

      Notional
        Amount: Not applicable.

       

      
        
          
          

        

        
          23

          
            

          

        

        
          
          

        

      

       

      Notional
        Amount Certificates: Not applicable.

       

      Notional
        Amount Component: Not applicable.

       

      Offered
        Certificates: As specified in the Preliminary Statement.

       

      Officer’s
        Certificate: A Certificate (i) signed by the Chairman of the Board, the Vice
        Chairman of the Board, the President, a Managing Director, a Vice President
        (however denominated), an Assistant Vice President, the Treasurer, the
        Secretary, or one of the Assistant Treasurers or Assistant Secretaries of
        the
        Depositor or the Master Servicer, or (ii), if provided for in this Agreement,
        signed by a Servicing Officer, as the case may be, and delivered to the
        Depositor and the Trustee, as the case may be, as required by this
        Agreement.

       

      Opinion
        of Counsel: A written opinion of counsel, who may be counsel for the Depositor
        or the Master Servicer, including, in-house counsel, reasonably acceptable
        to
        the Trustee; provided, however, that with respect to the interpretation or
        application of the REMIC Provisions, such counsel must (i) in fact be
        independent of the Depositor and the Master Servicer, (ii) not have any direct
        financial interest in the Depositor or the Master Servicer or in any affiliate
        of either, and (iii) not be connected with the Depositor or the Master Servicer
        as an officer, employee, promoter, underwriter, trustee, partner, director
        or
        person performing similar functions.

       

      Optional
        Termination: The termination of the trust created hereunder in connection
        with
        the purchase of the Mortgage Loans pursuant to Section 9.1(a)
        hereof.

       

      Original
        Mortgage Loan: The Mortgage Loan refinanced in connection with the origination
        of a Refinancing Mortgage Loan.

       

      Original
        Subordinated Principal Balance: The
        aggregate of the Class Certificate Balances of the Subordinated Certificates
        as
        of the Closing Date.

       

      OTS:
        The
        Office of Thrift Supervision.

       

      Outside
        Reference Date: Not applicable.

       

      Outstanding:
        With respect to the Certificates as of any date of determination, all
        Certificates theretofore executed and authenticated under this Agreement
        except:

       

      
        	 	
                (a)

              	
                Certificates
                  theretofore canceled by the Trustee or delivered to the Trustee
                  for
                  cancellation; and

              

      

       

      
        	 	
                (b)

              	
                Certificates
                  in exchange for which or in lieu of which other Certificates have
                  been
                  executed and delivered by the Trustee pursuant to this
                  Agreement.

              

      

       

      Outstanding
        Mortgage Loan: As of any Due Date, a Mortgage Loan with a Stated Principal
        Balance greater than zero which was not the subject of a Principal Prepayment
        in
        Full prior to such Due Date and which did not become a Liquidated Mortgage
        Loan
        prior to such Due Date.

       

      
        
          
          

        

        
          24

          
            

          

        

        
          
          

        

      

       

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

       

      PAC
        Certificates: Not applicable.

       

      Pass-Through
        Rate: For any interest bearing Class of Certificates, the per annum rate
        set
        forth or calculated in the manner described in the Preliminary
        Statement.

       

      Percentage
        Interest: As to any Certificate, the percentage interest evidenced thereby
        in
        distributions required to be made on the related Class, such percentage interest
        being set forth on the face thereof or equal to the percentage obtained by
        dividing the Denomination of such Certificate by the aggregate of the
        Denominations of all Certificates of the same Class.

       

      Performance
        Certification: As defined in Section 10.5.

       

      Permitted
        Investments: At any time, any one or more of the following obligations and
        securities:

       

      
        	 	
                (i)

              	
                obligations
                  of the United States or any agency thereof, provided such obligations
                  are
                  backed by the full faith and credit of the United
                  States;

              

      

       

      
        	 	
                (ii)

              	
                general
                  obligations of or obligations guaranteed by any state of the United
                  States
                  or the District of Columbia receiving the highest long-term debt
                  rating of
                  each Rating Agency;

              

      

       

      
        	 	
                (iii)

              	
                commercial
                  or finance company paper which is then receiving the highest commercial
                  or
                  finance company paper rating of each Rating
                  Agency;

              

      

       

      
        	 	
                (iv)

              	
                certificates
                  of deposit, demand or time deposits, or bankers’ acceptances issued by any
                  depository institution or trust company incorporated under the
                  laws of the
                  United States or of any state thereof and subject to supervision
                  and
                  examination by federal and/or state banking authorities, provided
                  that the
                  commercial paper and/or long term unsecured debt obligations of
                  such
                  depository institution or trust company (or in the case of the
                  principal
                  depository institution in a holding company system, the commercial
                  paper
                  or long-term unsecured debt obligations of such holding company,
                  but only
                  if Moody’s is not a Rating Agency) are then rated one of the two highest
                  long-term and/or the highest short-term ratings of each Rating
                  Agency for
                  such securities;

              

      

       

      
        	 	
                (v)

              	
                demand
                  or time deposits or certificates of deposit issued by any bank
                  or trust
                  company or savings institution to the extent that such deposits
                  are fully
                  insured by the FDIC and receiving the highest short-term debt rating
                  of
                  each Rating Agency;

              

      

       

      
        	 	
                (vi)

              	
                guaranteed
                  reinvestment agreements issued by any bank, insurance company or
                  other
                  corporation and receiving the highest short-term debt rating of
                  each
                  Rating Agency and containing, at the time of the issuance of such
                  agreements, such terms and conditions as will not result in the
                  downgrading or withdrawal of the rating then assigned to the Certificates
                  by either Rating Agency;

              

      

       

      
        
          
          

        

        
          25

          
            

          

        

        
          
          

        

      

       

      
        	 	
                (vii)

              	
                repurchase
                  obligations with respect to any security described in clauses (i)
                  and (ii)
                  above, in either case entered into with a depository institution
                  or trust
                  company (acting as principal) described in clause (iv)
                  above;

              

      

       

      
        	 	
                (viii)

              	
                securities
                  (other than stripped bonds, stripped coupons or instruments sold
                  at a
                  purchase price in excess of 115% of the face amount thereof) bearing
                  interest or sold at a discount issued by any corporation incorporated
                  under the laws of the United States or any state thereof which,
                  at the
                  time of such investment, have one of the two highest ratings of
                  each
                  Rating Agency (except if the Rating Agency is Moody’s or S&P, such
                  rating shall be the highest commercial paper rating of Moody’s or S&P,
                  as applicable, for any such
                  securities);

              

      

       

      
        	 	
                (ix)

              	
                units
                  of a taxable money-market portfolio having the highest rating assigned
                  by
                  each Rating Agency (except if Fitch is a Rating Agency and has
                  not rated
                  the portfolio, the highest rating assigned by Moody’s) and restricted to
                  obligations issued or guaranteed by the United States of America
                  or
                  entities whose obligations are backed by the full faith and credit
                  of the
                  United States of America and repurchase agreements collateralized
                  by such
                  obligations; and

              

      

       

      
        	 	
                (x)

              	
                such
                  other investments bearing interest or sold at a discount as will
                  not
                  result in the downgrading or withdrawal of the rating then assigned
                  to the
                  Certificates by either Rating Agency, as evidenced by a signed
                  writing
                  delivered by each Rating Agency;

              

      

       

      provided that
        no such
        instrument shall be a Permitted Investment if such instrument evidences the
        right to receive interest only payments with respect to the obligations
        underlying such instrument.

       

      Permitted
        Transferee: Any person other than (i) the United States, any State or political
        subdivision thereof, or any agency or instrumentality of any of the foregoing,
        (ii) a foreign government, International Organization or any agency or
        instrumentality of either of the foregoing, (iii) an organization (except
        certain farmers’ cooperatives described in section 521 of the Code) which is
        exempt from tax imposed by Chapter 1 of the Code (including the tax imposed
        by
        section 511 of the Code on unrelated business taxable income) on any excess
        inclusions (as defined in section 860E(c)(l) of the Code) with respect to
        any
        Residual Certificate, (iv) rural electric and telephone cooperatives described
        in section 1381(a)(2)(C) of the Code, (v) an “electing large partnership” as
        defined in section 775 of the Code, (vi) a Person that is not (a) a citizen
        or
        resident of the United States, (b) a corporation, partnership, or other entity
        created or organized in or under the laws of the United States, any state
        thereof or the District of Columbia, (c) an estate whose income from sources
        without the United States is includible in gross income for United States
        federal income tax purposes regardless of its connection with the conduct
        of a
        trade or business within the United States or (d) a trust if a court within
        the
        United States is able to exercise primary supervision over the administration
        of
        the trust and one or more United States persons have the authority to control
        all substantial decisions of the trust, unless such Person has furnished
        the
        transferor and the Trustee with a duly completed Internal Revenue Service
        Form
        W-8ECI or any applicable successor form, and (vii) any other Person so
        designated by the Depositor based upon an Opinion of Counsel that the Transfer
        of an Ownership Interest in a Residual Certificate to such Person may cause
        the
        REMIC created hereunder to fail to qualify as a REMIC at any time that the
        Certificates are outstanding; provided, however, that if a person is classified
        as a partnership under the Code, such person shall only be a Permitted
        Transferee if all of its beneficial owners are described in subclauses (a),
        (b),
        (c) or (d) of clause (vi) and the governing documents of such person prohibits
        a
        transfer of any interest in such person to any person described in clause
        (vi).
        The terms “United States,” “State” and “International Organization” shall have
        the meanings set forth in section 7701 of the Code or successor provisions.
        A
        corporation will not be treated as an instrumentality of the United States
        or of
        any State or political subdivision thereof for these purposes if all of its
        activities are subject to tax and, with the exception of the Federal Home
        Loan
        Mortgage Corporation, a majority of its board of directors is not selected
        by
        such government unit.

       

      
        
          
          

        

        
          26

          
            

          

        

        
          
          

        

      

       

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

       

      Physical
        Certificates: As specified in the Preliminary Statement.

       

      Plan:
        An
        employee benefit plan or other retirement arrangement which is subject to
        Section 406 of ERISA and/or Section 4975 of the Code or any entity whose
        underlying assets include such plan’s or arrangement’s assets by reason of their
        investment in the entity.

       

      PO
        Percentage: (a) With respect to any Discount Mortgage Loan, the fraction,
        expressed as a percentage, equal to (6.00% - NMR) divided by 6.00%, and (b)
        with
        respect to any Non-Discount Mortgage Loan, 0%.

       

      Pool
        Principal Balance: With respect to any Distribution Date, the aggregate of
        the
        Stated Principal Balances of the Mortgage Loans which were Outstanding Mortgage
        Loans on the Due Date in the month preceding the month of such Distribution
        Date, and for the first Distribution Date, as of the Closing Date, less any
        Principal Prepayments received on or after such Due Date and distributed
        to
        Certificateholders on the prior Distribution Date.

       

      Prepayment
        Interest Excess: As to any Principal Prepayment received by the Master Servicer
        from the first day through the fifteenth day of any calendar month (other
        than
        the calendar month in which the Cut-off Date occurs), all amounts paid by
        the
        related Mortgagor in respect of interest on such Principal Prepayment. All
        Prepayment Interest Excess shall be paid to the Master Servicer as additional
        master servicing compensation.

       

      Prepayment
        Interest Shortfall: As to any Distribution Date, Mortgage Loan and Principal
        Prepayment received (a) during the period from the sixteenth day of the month
        preceding the month of such Distribution Date (or, in the case of the first
        Distribution Date, from the Cut-off Date) through the last day of such month,
        in
        the case of a Principal Prepayment in Full, or (b) during the month preceding
        the month of such Distribution Date, in the case of a partial Principal
        Prepayment, the amount, if any, by which one month’s interest at the related
        Adjusted Mortgage Rate on such Principal Prepayment exceeds the amount of
        interest actually paid by the Mortgagor in connection with such Principal
        Prepayment.

       

      
        
          
          

        

        
          27

          
            

          

        

        
          
          

        

      

       

      Prepayment
        Period: (a) With respect to any Principal Prepayments in Full and any
        Distribution Date, the period from the sixteenth day of the month preceding
        the
        month of such Distribution Date (or, in the case of the first Distribution
        Date,
        from the Cut-off Date) through the fifteenth day of the month of such
        Distribution Date, and (b) with respect to any other Principal Prepayments
        and
        any Distribution Date, the month preceding the month of such Distribution
        Date.

       

      Primary
        Insurance Policy: Each policy of primary mortgage guaranty insurance or any
        replacement policy therefor with respect to any Mortgage Loan.

       

      Principal
        Only Certificates: As specified in the Preliminary Statement.

       

      Principal
        Prepayment: Any payment of principal by a Mortgagor on a Mortgage Loan that
        is
        received in advance of its scheduled Due Date and is not accompanied by an
        amount representing scheduled interest due on any date or dates in any month
        or
        months subsequent to the month of prepayment. Partial Principal Prepayments
        shall be applied by the Master Servicer in accordance with the terms of the
        related Mortgage Note.

       

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

       

      Private
        Certificates: As specified in the Preliminary Statement.

       

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

       

      Prospectus:
        The Prospectus dated October 12, 2006 generally relating to mortgage
        pass-through certificates to be sold by the Depositor.

       

      Prospectus
        Supplement: The Prospectus Supplement, dated May 22, 2007, relating to the
        Offered Certificates.

       

      PUD:
        Planned Unit Development.

       

      Purchase
        Price: With respect to any Mortgage Loan required to be purchased by the
        Seller
        pursuant to Section 2.2 or 2.3 hereof or purchased at the option of the Master
        Servicer pursuant to Section 3.11, an amount equal to the sum of (i) 100%
        of the
        unpaid principal balance of the Mortgage Loan on the date of such purchase,
        (ii)
        accrued interest thereon at the applicable Mortgage Rate (or at the applicable
        Adjusted Mortgage Rate if the purchaser is the Master Servicer) from the
        date
        through which interest was last paid by the Mortgagor to the Due Date in
        the
        month in which the Purchase Price is to be distributed to Certificateholders,
        and (iii) any costs and damages incurred by the Trust in connection with
        the
        noncompliance of such Mortgage Loan with any specifically applicable predatory
        or abusive lending law.

       

      
        
          
          

        

        
          28

          
            

          

        

        
          
          

        

      

       

      Qualified
        Insurer: A mortgage guaranty insurance company duly qualified as such under
        the
        laws of the state of its principal place of business and each state having
        jurisdiction over such insurer in connection with the insurance policy issued
        by
        such insurer, duly authorized and licensed in such states to transact a mortgage
        guaranty insurance business in such states and to write the insurance provided
        by the insurance policy issued by it, approved as a FNMA-approved mortgage
        insurer and having a claims paying ability rating of at least “AA” or equivalent
        rating by a nationally recognized statistical rating organization. Any
        replacement insurer with respect to a Mortgage Loan must have at least as
        high a
        claims paying ability rating as the insurer it replaces had on the Closing
        Date.

       

      Rating
        Agency: Each of the Rating Agencies specified in the Preliminary Statement.
        If
        any such organization or a successor is no longer in existence, “Rating Agency”
shall be such nationally recognized statistical rating organization, or other
        comparable Person, as is designated by the Depositor, notice of which
        designation shall be given to the Trustee. References herein to a given rating
        category of a Rating Agency shall mean such rating category without giving
        effect to any modifiers.

       

      Realized
        Loss: With respect to each Liquidated Mortgage Loan, an amount (not less
        than
        zero or more than the Stated Principal Balance of the Mortgage Loan) as of
        the
        date of such liquidation, equal to (i) the Stated Principal Balance of the
        Liquidated Mortgage Loan as of the date of such liquidation, plus (ii) interest
        at the Adjusted Net Mortgage Rate from the Due Date as to which interest
        was
        last paid or advanced (and not reimbursed) to Certificateholders up to the
        Due
        Date in the month in which Liquidation Proceeds are required to be distributed
        on the Stated Principal Balance of such Liquidated Mortgage Loan from time
        to
        time, minus (iii) any Liquidation Proceeds, Insurance Proceeds and/or
        Unanticipated Recoveries received during the month in which such liquidation
        occurred (or during the calendar month preceding the related Distribution
        Date,
        as applicable), to the extent applied as recoveries of interest at the Adjusted
        Net Mortgage Rate and to principal of the Liquidated Mortgage Loan. With
        respect
        to each Mortgage Loan, other than a Liquidated Mortgage Loan, which has become
        the subject of a Deficient Valuation, if the principal amount due under the
        related Mortgage Note has been reduced, the difference between the principal
        balance of the Mortgage Loan outstanding immediately prior to such Deficient
        Valuation and the principal balance of the Mortgage Loan as reduced by the
        Deficient Valuation.

       

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

       

      Record
        Date: With respect to any Distribution Date, the close of business on the
        last
        Business Day of the month preceding the month in which such Distribution
        Date
        occurs.

       

      Reference
        Bank: A leading bank with an established place of business in London engaged
        in
        transactions in Eurodollar deposits in the international Eurocurrency market,
        not controlled by, or under the common control with, the Trustee.

       

      
        
          
          

        

        
          29

          
            

          

        

        
          
          

        

      

       

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

       

      Regular
        Certificates: As specified in the Preliminary Statement.

       

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

       

      Relief
        Act: The Servicemembers Civil Relief Act, as amended, or any similar state
        or
        local legislation or regulations.

       

      Relief
        Act Reductions: With respect to any Distribution Date and any Mortgage Loan
        as
        to which there has been a reduction in the amount of interest collectible
        thereon for the most recently ended calendar month as a result of the
        application of the Relief Act, the amount, if any, by which interest collectible
        on such Mortgage Loan for the most recently ended calendar month is less
        than
        interest accrued thereon for such month pursuant to the Mortgage
        Note.

       

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

       

      REMIC
        Change of Law: Any proposed, temporary or final regulation, revenue ruling,
        revenue procedure or other official announcement or interpretation relating
        to
        REMICs and the REMIC Provisions issued after the Closing Date.

       

      REMIC
        Pool: The 2007-3 REMIC.

       

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

       

      REO
        Property: A Mortgaged Property acquired by the Trust Fund through foreclosure
        or
        deed-in-lieu of foreclosure in connection with a defaulted Mortgage
        Loan.

       

      Reportable
        Event: Any event required to be reported on Form 8-K, and in any event, the
        following:

       

      (a) entry
        into a definitive agreement related to the Trust Fund, the Certificates or
        the
        Mortgage Loans, or an amendment to a Transaction Document, even if the Depositor
        is not a party to such agreement (e.g., a servicing agreement with a servicer
        contemplated by Item 1108(a)(3) of Regulation AB);

       

      (b) termination
        of this Agreement or any other document entered into in connection with the
        Trust Fund, the Certificates or the Mortgage Loans (other than by expiration
        of
        the applicable agreement on its stated termination date or as a result of
        all
        parties completing their obligations under such agreement), even if the
        Depositor is not a party to such agreement (e.g., a servicing agreement with
        a
        servicer contemplated by Item 1108(a)(3) of Regulation AB);

       

      
        
          
          

        

        
          30

          
            

          

        

        
          
          

        

      

       

      (c) with
        respect to the Master Servicer only, if the Master Servicer becomes aware
        of any
        bankruptcy or receivership with respect to First Horizon, the Depositor,
        the
        Master Servicer, any Subservicer, the Trustee, any co-trustee, any enhancement
        or support provider contemplated by Items 1114(b) or 1115 of Regulation AB,
        or
        any other material party contemplated by Item 1101(d)(1) of Regulation
        AB;

       

      (d) with
        respect to the Trustee, the Master Servicer and the Depositor only, the
        occurrence of an early amortization, performance trigger or other event,
        including an Event of Default under this Agreement;

       

      (e) the
        resignation, removal, replacement, substitution of the Trustee, the Master
        Servicer, any Subservicer, the Trustee or any co-trustee;

       

      (f) with
        respect to the Master Servicer only, if the Master Servicer becomes aware
        that
        (i) any material enhancement or support specified in Item 1114(a)(1) through
        (3)
        of Regulation AB or Item 1115 of Regulation AB that was previously applicable
        regarding one or more classes of the Certificates has terminated other than
        by
        expiration of the contract on its stated termination date or as a result
        of all
        parties completing their obligations under such agreement; (ii) any material
        enhancement specified in Item 1114(a)(1) through (3) of Regulation AB or
        Item
        1115 of Regulation AB has been added with respect to one or more classes
        of the
        Certificates; or (iii) any existing material enhancement or support specified
        in
        Item 1114(a)(1) through (3) of Regulation AB or Item 1115 of Regulation AB
        with
        respect to one or more classes of the Certificates has been materially amended
        or modified; and 

       

      (g) with
        respect to the Trustee, the Master Servicer and the Depositor only, a required
        distribution to Holders of the Certificates is not made as of the required
        Distribution Date under this Agreement.

       

      Reporting
        Subcontractor: With respect to the Master Servicer or the Trustee, any
        Subcontractor determined by such Person pursuant to Section 10.8(b) to be
        materially “participating in the servicing function” within the meaning of Item
        1122 of Regulation AB. References to a Reporting Subcontractor shall refer
        only
        to the Subcontractor of such Person and shall not refer to Subcontractors
        generally.

       

      Request
        for Release: The Request for Release submitted by the Master Servicer to
        the
        Trustee, substantially in the form of Exhibits L and M, as
        appropriate.

       

      Required
        Coupon: 6.2500% per annum.

       

      Required
        Insurance Policy: With respect to any Mortgage Loan, any insurance policy
        that
        is required to be maintained from time to time under this
        Agreement.

       

      Required
        Recordation States: The states of Florida, Maryland and
        Mississippi.

       

      
        
          
          

        

        
          31

          
            

          

        

        
          
          

        

      

       

      Residual
        Certificates: As specified in the Preliminary Statement.

       

      Responsible
        Officer: When used with respect to the Trustee, any Vice President, any
        Assistant Vice President, the Secretary, any Assistant Secretary, any Trust
        Officer or any other officer of the Trustee customarily performing functions
        similar to those performed by any of the above designated officers and having
        direct responsibility for the administration of this Agreement and also to
        whom,
        with respect to a particular matter, such matter is referred because of such
        officer’s knowledge of and familiarity with the particular subject.

       

      Retail/Lottery
        Certificates: Not applicable.

       

      Retained
        Yield: As
        to
        each Mortgage Loan and any Distribution Date, an amount payable to (i) First
        Horizon Home Loan Corporation, in its individual capacity as Seller, or (ii)
        the
        subsequent owner of such amount though Seller’s sale, assignment, or
        certification of its rights to such amount, out of each full payment of interest
        received on such Mortgage Loan and equal to one-twelfth of the Retained Yield
        Rate multiplied by the Stated Principal Balance of such Mortgage Loan as
        of the
        Due Date in the month of such Distribution Date (prior to giving effect to
        any
        Scheduled Payments due on such Mortgage Loan on such Due Date)..

       

      Retained
        Yield Rate: For any Non-Discount Mortgage Loan, a per annum rate equal to
        the
        excess of (a) the applicable Mortgage Rate over (b) the Required Coupon.
        For any
        Discount Mortgage Loan, 0%. 

       

      Sarbanes-Oxley
        Certification: As defined in Section 10.5.

       

      Scheduled
        Balances: Not applicable.

       

      Scheduled
        Certificates: Not applicable.

       

      Scheduled
        Payment: The scheduled monthly payment on a Mortgage Loan due on any Due
        Date
        allocable to principal and/or interest on such Mortgage Loan which, unless
        otherwise specified herein, shall give effect to any related Debt Service
        Reduction and any Deficient Valuation that affects the amount of the monthly
        payment due on such Mortgage Loan.

       

      SEC:
        The
        U.S. Securities and Exchange Commission.

       

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

       

      Security
        Agreement: The
        security agreement with respect to a Cooperative Loan.

       

      Seller:
        First Horizon Home Loan Corporation, a Kansas corporation, and its successors
        and assigns, in its capacity as seller of the Mortgage Loans pursuant to
        the
        MLPA.

       

      Senior
        Certificates: As specified in the Preliminary Statement.

       

      Senior
        Final Distribution Date: For the Senior Certificates, the Distribution Date
        on
        which the Class Certificate Balance of each Class of Senior Certificates
        has
        been reduced to zero.

       

      
        
          
          

        

        
          32

          
            

          

        

        
          
          

        

      

       

      Senior
        Mezzanine Certificates: Not applicable.

       

      Senior
        Optimal Principal Amount: With respect to each Distribution Date, an amount
        equal to the sum of:

       

      (1) the
        Senior Percentage of the Non-PO Percentage of all Scheduled Payments of
        principal due on each Mortgage Loan on the first day of the month in which
        the
        Distribution Date occurs, as specified in the amortization schedule at the
        time
        applicable thereto after adjustment for previous principal prepayments and
        the
        principal portion of Debt Service Reductions after the Bankruptcy Loss Coverage
        Amount has been reduced to zero, but before any adjustment to such amortization
        schedule by reason of any other bankruptcy or similar proceeding or any
        moratorium or similar waiver or grace period;

       

      (2) the
        Senior Prepayment Percentage of the Non-PO Percentage of the Stated Principal
        Balance of each Mortgage Loan which was the subject of a Principal Prepayment
        in
        Full received by the Master Servicer during the applicable Prepayment
        Period;

       

      (3) the
        Senior Prepayment Percentage of the Non-PO Percentage of the sum of (a) all
        partial Principal Prepayments in respect of each Mortgage Loan received during
        the applicable Prepayment Period and (b) all Unanticipated Recoveries in
        respect
        of each Mortgage Loan received during the calendar month preceding such
        Distribution Date;

       

      (4) the
        lesser of:

       

      
        	 	
                (a)

              	
                the
                  Senior Prepayment Percentage of the sum of (x) the Non-PO Percentage
                  of
                  the Liquidation Proceeds allocable to principal on each Mortgage
                  Loan
                  which became a Liquidated Mortgage Loan during the related Prepayment
                  Period, other than Mortgage Loans described in clause (y), and
                  (y) the
                  Non-PO Percentage of the Stated Principal Balance of each Mortgage
                  Loan
                  that was purchased by a private mortgage insurer during the related
                  Prepayment Period as an alternative to paying a claim under the
                  related
                  Insurance Policy; and

              

      

       

      
        	 	
                (b)

              	
                (i)
                  the Senior Percentage of the sum of (x) the Non-PO Percentage of
                  the
                  Stated Principal Balance of each Mortgage Loan which became a Liquidated
                  Mortgage Loan during the related Prepayment Period, other than
                  Mortgage
                  Loans described in clause (y), and (y) the Non-PO Percentage of
                  the Stated
                  Principal Balance of each Mortgage Loan that was purchased by a
                  private
                  mortgage insurer during the related Prepayment Period as an alternative
                  to
                  paying a claim under the related Insurance Policy minus (ii) the
                  Non-PO
                  Percentage of the related Senior Percentage of the principal portion
                  of
                  the related Senior Percentage of the principal portion of Excess
                  Losses
                  (other than Debt Service Reductions) during the related Prepayment
                  Period;
                  and

              

      

       

      (5) the
        Senior Prepayment Percentage of the sum of (a) the Non-PO Percentage of the
        Stated Principal Balance of each Mortgage Loan which was repurchased by the
        seller in connection with such Distribution Date and (b) the difference,
        if any,
        between the Non-PO Percentage of the Stated Principal Balance of each Mortgage
        Loan that has been replaced by the seller with a Substitute Mortgage Loan
        pursuant to this Agreement in connection with such Distribution Date and
        the
        Stated Principal Balance of such Substitute Mortgage Loan.

       

      
        
          
          

        

        
          33

          
            

          

        

        
          
          

        

      

       

      Senior
        Percentage: On any Distribution Date, the lesser of 100% and the percentage
        obtained by dividing the aggregate Class Certificate Balances of all Classes
        of
        Senior Certificates (other than the Class PO Certificates) immediately preceding
        such Distribution Date by the Pool Principal Balance (excluding the aggregate
        of
        the PO Percentage of the principal balance of each Discount Mortgage Loan)
        for
        the immediately preceding Distribution Date.

       

      Senior
        Prepayment Percentage: On any Distribution Date occurring during the periods
        set
        forth below, the Senior Prepayment Percentages described below:

      

        
          	
                  Period
                    (Dates Inclusive)

                	 	
                  Senior
                    Prepayment Percentage

                
	
                  June
                    2007 - May 2012

                	 	
                  100%

                
	
                  June
                    2012 - May 2013

                	 	
                  The
                    Senior Percentage plus 70% of the Subordinated
                    Percentage.

                
	
                  June
                    2013 - May 2014

                	 	
                  The
                    Senior Percentage plus 60% of the Subordinated
                    Percentage.

                
	
                  June
                    2014 - May 2015

                	 	
                  The
                    Senior Percentage plus 40% of the Subordinated
                    Percentage.

                
	
                  June
                    2015 - May 2016

                	 	
                  The
                    Senior Percentage plus 20% of the Subordinated
                    Percentage.

                
	
                  June
                    2016 and thereafter

                	 	
                  The
                    Senior Percentage.

                

        

      

       

      Notwithstanding
        the foregoing, if the Senior Percentage on any Distribution Date exceeds
        the
        initial Senior Percentage, the Senior Prepayment Percentage for such
        Distribution Date will equal 100%.

       

      In
        addition, no reduction of the Senior Prepayment Percentage below the level
        in
        effect for the most recent prior period specified in the table above shall
        be
        effective on any Distribution Date, unless both of the following step-down
        conditions are satisfied, as of the last day of the month preceding such
        Distribution Date:

       

      (1) the
        aggregate Stated Principal Balance of Mortgage Loans delinquent 60 days or
        more
        (including for this purpose any Mortgage Loans in foreclosure or subject
        to
        bankruptcy proceedings and Mortgage Loans with respect to which the related
        Mortgaged Property, including REO Property, has been acquired by the Trust)
        does
        not exceed 50% of the aggregate Class Certificate Balances of the Subordinated
        Certificates as of that date; and

       

      (2) cumulative
        Realized Losses do not exceed:

       

      
        	 	
                (a)

              	
                30%
                  of the Original Subordinated Principal Balance if such Distribution
                  Date
                  occurs between and including June 2012 and May
                  2013;

              

      

       

      
        	 	
                (b)

              	
                35%
                  of the Original Subordinated Principal Balance if such Distribution
                  Date
                  occurs between and including June 2013 and May
                  2014;

              

      

       

      
        
          
          

        

        
          34

          
            

          

        

        
          
          

        

      

       

      
        	 	
                (c)

              	
                40%
                  of the Original Subordinated Principal Balance if such Distribution
                  Date
                  occurs between and including June 2014 and May
                  2015;

              

      

       

      
        	 	
                (d)

              	
                45%
                  of the Original Subordinated Principal Balance if such Distribution
                  Date
                  occurs between and including June 2015 and May 2016;
                  and

              

      

       

      
        	 	
                (e)

              	
                50%
                  of the related Original Subordinated Principal Balance if such
                  Distribution Date occurs during or after June
                  2016.

              

      

       

      Servicing
        Advances: All customary, reasonable and necessary “out of pocket” costs and
        expenses incurred in the performance by the Master Servicer of its servicing
        obligations, including, but not limited to, the cost of (i) the preservation,
        restoration and protection of a Mortgaged Property, (ii) any expenses
        reimbursable to the Master Servicer pursuant to Section 3.11 and any enforcement
        or judicial proceedings, including foreclosures, (iii) the management and
        liquidation of any REO Property and (iv) compliance with the obligations
        under
        Section 3.9.

       

      Servicing
        Agreement: The servicing agreement, dated as of November 26, 2002 by and
        between First Horizon Asset Securities Inc. and its assigns, as owner, and
        First
        Tennessee Mortgage Services, Inc., as servicer, as the same may be amended
        from
        time to time in accordance with its terms.

       

      Servicing
        Criteria: The “servicing criteria” set forth in Item 1122(d) of Regulation
        AB.

       

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

       

      Servicing
        Rights Transfer and Subservicing Agreement: The servicing rights transfer
        and
        subservicing agreement, dated as of November 26, 2002, by and between First
        Horizon Home Loan Corporation, as transferor and subservicer, and First
        Tennessee Mortgage Services, Inc., as transferee and servicer, as the same
        may
        be amended from time to time in accordance with its terms.

       

      Special
        Hazard Coverage Termination Date: The date on which the Special Hazard Loss
        Coverage Amount is reduced to zero.

       

      Special
        Hazard Loss: Any Realized Loss suffered by a Mortgaged Property on account
        of
        direct physical loss but not including (i) any loss of a type covered by
        a
        hazard insurance policy or a flood insurance policy required to be maintained
        with respect to such Mortgaged Property pursuant to Section 3.9 to the extent
        of
        the amount of such loss covered thereby, (ii) any shortfall in Insurance
        Proceeds for partial damage due to the application of the co-insurance clauses
        contained in a hazard insurance policy, or (iii) any loss caused by or resulting
        from:

       

      (1) normal
        wear and tear;

       

      
        
          
          

        

        
          35

          
            

          

        

        
          
          

        

      

       

      (2) fraud,
        conversion or other dishonest act on the part of the Trustee, the Master
        Servicer or any of their agents or employees (without regard to any portion
        of
        the loss not covered by any errors and omissions policy);

       

      (3) errors
        in
        design, faulty workmanship or faulty materials, unless the collapse of the
        property or a part thereof ensues and then only for the ensuing
        loss;

       

      (4) nuclear
        or chemical reaction or nuclear radiation or radioactive or chemical
        contamination, all whether controlled or uncontrolled, and whether such loss
        be
        direct or indirect, proximate or remote or be in whole or in part caused
        by,
        contributed to or aggravated by a peril covered by the definition of the
        term
“Special Hazard Loss”;

       

      (5) hostile
        or warlike action in time of peace and war, including action in hindering,
        combating or defending against an actual, impending or expected
        attack:

       

      
        	 	
                (i)

              	
                by
                  any government or sovereign power, de jure or de facto, or by any
                  authority maintaining or using military, naval or air
                  forces;

              

      

       

      
        	 	
                (ii)

              	
                by
                  military, naval or air forces; or

              

      

       

      
        	 	
                (iii)

              	
                by
                  an agent of any such government, power, authority or
                  forces;

              

      

       

      (6) any
        weapon of war employing nuclear fission, fusion or other radioactive force,
        whether in time of peace or war; or

       

      (7) insurrection,
        rebellion, revolution, civil war, usurped power or action taken by governmental
        authority in hindering, combating or defending against such an occurrence,
        seizure or destruction under quarantine or customs regulations, confiscation
        by
        order of any government or public authority or risks of contraband or illegal
        transportation or trade.

       

      Special
        Hazard Loss Coverage Amount: Upon the initial issuance of the Certificates,
        $4,995,695.
        As of any Distribution Date, the Special Hazard Loss Coverage Amount will
        equal
        the greater of

       

      (a) 1.00%
        (or
        if greater than 1.00%, the highest percentage of Mortgage Loans by principal
        balance secured by Mortgaged Properties in any single California zip code)
        of
        the outstanding principal balance of all the Mortgage Loans as of the related
        Determination Date; and

       

      (b) twice
        the
        outstanding principal balance of the Mortgage Loan which has the largest
        outstanding principal balance as of the related Determination Date,

       

      less,
        in
        each case, the aggregate amount of Special Hazard Losses that would have
        been
        previously allocated to the Subordinated Certificates in the absence of the
        Loss
        Allocation Limitation. As of any Distribution Date on or after the Cross-over
        Date, the Special Hazard Loss Coverage Amount will be zero.

       

      
        
          
          

        

        
          36

          
            

          

        

        
          
          

        

      

       

      Special
        Hazard Mortgage Loan: A Liquidated Mortgage Loan as to which a Special Hazard
        Loss has occurred.

       

      S&P:
        Standard & Poor’s, a division of The McGraw-Hill Companies, Inc., and its
        successors and/or assigns. If S&P is designated as a Rating Agency in the
        Preliminary Statement, for purposes of Section 11.5(b) the address for notices
        to S&P shall be Standard & Poor’s, 55 Water Street, 41st Floor, New
        York, New York 10041, Attention: Mortgage Surveillance Monitoring, or such
        other
        address as S&P may hereafter furnish to the Depositor and the Master
        Servicer.

       

      Startup
        Day: The Closing Date.

       

      Stated
        Principal Balance: As to any Mortgage Loan and Due Date, the unpaid principal
        balance of such Mortgage Loan as of such Due Date as specified in the
        amortization schedule at the time relating thereto (before any adjustment
        to
        such amortization schedule by reason of any moratorium or similar waiver
        or
        grace period) after giving effect to any previous partial Principal Prepayments
        and Liquidation Proceeds allocable to principal (other than with respect
        to any
        Liquidated Mortgage Loan) and to the payment of principal due on such Due
        Date
        and irrespective of any delinquency in payment by the related
        Mortgagor.

       

      Streamlined
        Documentation Mortgage Loan: Any Mortgage Loan originated pursuant to the
        Seller’s Streamlined Loan Documentation Program then in effect.

       

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

       

      Subordinated
        Certificates: As specified in the Preliminary Statement.

       

      Subordinated
        Certificate Writedown Amount: As of any Distribution Date, the amount by
        which
        (a) the sum of the Class Certificate Balances of all the Certificates, after
        giving effect to the distribution of principal and the allocation of Realized
        Losses in reduction of the Class Certificate Balances of all of the Certificates
        on such Distribution Date, exceeds (b) the Pool Principal Balance on the
        first
        day of the month of such Distribution Date, less any Deficient Valuations
        occurring before the Bankruptcy Loss Coverage Amount has been reduced to
        zero.

       

      Subordinated
        Optimal Principal Amount: With respect to each Distribution Date, an amount
        equal to the sum of the following (but in no event greater than the aggregate
        Class Certificate Balances of the Subordinated Certificates immediately prior
        to
        such Distribution Date):

       

      (1) the
        Subordinated Percentage of the Non-PO Percentage of all Scheduled Payments
        of
        principal due on each outstanding Mortgage Loan on the first day of the month
        in
        which the Distribution Date occurs, as specified in the amortization schedule
        at
        the time applicable thereto, after adjustment for previous principal prepayments
        and the principal portion of Debt Service Reductions after the Bankruptcy
        Loss
        Coverage Amount has been reduced to zero, but before any adjustment to such
        amortization schedule by reason of any other bankruptcy or similar proceeding
        or
        any moratorium or similar waiver or grace period;

       

      
        
          
          

        

        
          37

          
            

          

        

        
          
          

        

      

       

      (2) the
        Subordinated Prepayment Percentage of the Non-PO Percentage of the Stated
        Principal Balance of each Mortgage Loan which was the subject of a Principal
        Prepayment in Full received by the Master Servicer during the related Prepayment
        Period;

       

      (3) the
        Subordinated Prepayment Percentage of the Non-PO Percentage of the sum of
        (a)
        all partial Principal Prepayments received in respect of each Mortgage Loan
        during the related Prepayment Period, (b) all Unanticipated Recoveries received
        in respect of each Mortgage Loan during the calendar month prior to such
        Distribution Date, and (c) on the Senior Final Distribution Date, 100% of
        any
        related Senior Optimal Principal Amount remaining undistributed on such
        date;

       

      (4) the
        amount, if any, by which the sum of (a) the Non-PO Percentage of the net
        Liquidation Proceeds allocable to principal received during the related
        Prepayment Period in respect of each Liquidated Mortgage Loan, other than
        Mortgage Loans described in clause (b), and (b) the Non-PO Percentage of
        the
        Stated Principal Balance of each Mortgage Loan that was purchased by a private
        mortgage insurer during the related Prepayment Period as an alternative to
        paying a claim under the related Insurance Policy exceeds (c) the sum of
        the
        amounts distributable to the Senior Certificateholders (other than the holders
        of the Class PO Certificates) under clause (4) of the definition of applicable
        Senior Optimal Principal Amount on such Distribution Date; and

       

      (5) the
        Subordinated Prepayment Percentage of the sum of (a) the Non-PO Percentage
        of
        the Stated Principal Balance of each Mortgage Loan which was repurchased
        by the
        seller in connection with such Distribution Date and (b) the difference,
        if any,
        between the Non-PO Percentage of the Stated Principal Balance of each Mortgage
        Loan that has been replaced by the seller with a Substitute Mortgage Loan
        pursuant to this Agreement in connection with such Distribution Date and
        the
        Stated Principal Balance of each such Substitute Mortgage Loan.

       

      Subordinated
        Percentage: For any Distribution Date, 100% minus the Senior
        Percentage.

       

      Subordinated
        Prepayment Percentage: For any Distribution Date, 100% minus the Senior
        Prepayment Percentage.

       

      Subservicer:
        Any person to whom the Master Servicer has contracted for the servicing of
        all
        or a portion of the Mortgage Loans pursuant to Section 3.2 hereof.

       

      Substitute
        Mortgage Loan: A Mortgage Loan substituted by the Seller for a Deleted Mortgage
        Loan which must, on the date of such substitution, as confirmed in a Request
        for
        Release, substantially in the form of Exhibit L, (i) have a Stated Principal
        Balance, after deduction of the principal portion of the Scheduled Payment
        due
        in the month of substitution, not in excess of, and not more than 10% less
        than
        the Stated Principal Balance of the Deleted Mortgage Loan; (ii) have an Adjusted
        Net Mortgage Rate not lower than the lower of (a) the Adjusted Net Mortgage
        Rate
        of the Deleted Mortgage Loan or (b) 6.25%, provided that the Master Servicing
        Fee for the Substitute Mortgage Loan shall be equal to or greater than that
        of
        the Deleted Mortgage Loan; (iii) be accruing interest at a rate no lower
        than
        and not more than 1% per annum higher than, that of the Deleted Mortgage
        Loan;
        (iv) have a Loan-to-Value Ratio no higher than that of the Deleted Mortgage
        Loan; (v) have a remaining term to maturity no greater than (and not more
        than
        one year less than that of) the Deleted Mortgage Loan; (vi) not be a Cooperative
        Loan unless the Deleted Mortgage Loan was a Cooperative Loan and (vii) comply
        with each representation and warranty set forth in Section 2.3
        hereof.

       

      
        
          
          

        

        
          38

          
            

          

        

        
          
          

        

      

       

      Substitution
        Adjustment Amount: The meaning ascribed to such term pursuant to Section
        2.3.

       

      Super
        Senior Certificates: Not applicable.

       

      Support
        Classes: Not applicable.

       

      TAC
        Certificates: Not applicable.

       

      Tax
        Matters Person: The person designated as “tax matters person” in the manner
        provided under Treasury regulation § 1.860F-4(d) and Treasury regulation §
301.6231(a)(7)-1. Initially, the Tax Matters Person shall be the
        Trustee.

       

      Tax
        Matters Person Certificate: The Class A-R Certificates with a Denomination
        of
        $0.01.

       

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

       

      Trust
        Fund: The corpus of the trust created hereunder consisting of (i) the Mortgage
        Loans and all interest and principal received on or with respect thereto
        after
        the Cut-off Date to the extent not applied in computing the Cut-off Date
        Principal Balance thereof; (ii) all of the Depositor’s rights as purchaser under
        the MLPA; (iii) the Certificate Account and the Distribution Account and
        all
        amounts deposited therein pursuant to the applicable provisions of this
        Agreement; (iv) property that secured a Mortgage Loan and has been acquired
        by
        foreclosure, deed-in-lieu of foreclosure or otherwise; and (v) all proceeds
        of
        the conversion, voluntary or involuntary, of any of the foregoing; provided
        that
        the Trust Fund shall exclude the Retained Yield.

       

      Trustee:
        The Bank of New York and its successors and, if a successor trustee is appointed
        hereunder, such successor.

       

      Trustee
        Fee: As to any Distribution Date, an amount equal to one-twelfth of the Trustee
        Fee Rate multiplied by the Pool Principal Balance with respect to such
        Distribution Date.

       

      Trustee
        Fee Rate: With respect to each Mortgage Loan, the per annum rate equal to
        0.006%.

       

      Unanticipated
        Recovery: As defined in Section 4.2(g).

       

      Underwriters:
        As specified in the Preliminary Statement.

       

      
        
          
          

        

        
          39

          
            

          

        

        
          
          

        

      

       

      Underwriters’
        Exemption: An individual administrative exemption granted by the U.S. Department
        of Labor to the Underwriters providing exceptions from some of the prohibited
        transaction rules of ERISA with respect to the initial purchase, the holding
        and
        the subsequent resale by employee benefit plans in certificates in pass-through
        trusts having assets and meeting conditions described therein, as amended
        by
        Prohibited Transaction Exemption 2000-58 (65 Fed. Reg. 67765, November 13,
        2000), as amended, and Prohibited Transaction Exemption 2002-41 (67 Fed.
        Reg.
        54487, August 22, 2002), as amended (or any successor thereto), or any
        substantially similar administrative exemption granted by the U.S. Department
        of
        Labor.

       

      Voting
        Rights: The portion of the voting rights of all of the Certificates which
        is
        allocated to any Certificate. As of any date of determination, (a) 99% of
        all
        Voting Rights will be allocated among all Holders of the Certificates, other
        than the Class A-R Certificates, in proportion to their then outstanding
        Class
        Certificate Balance; and (b) 1.0% of all Voting Rights will be allocated
        to the
        Class A-R Certificates (such Voting Rights to be allocated among the Holders
        of
        Certificates of such Class in accordance with their respective Percentage
        Interests).

       

      ARTICLE
        II

      CONVEYANCE
        OF MORTGAGE LOANS; 

      REPRESENTATIONS
        AND WARRANTIES

       

      SECTION
        2.1 Conveyance of Mortgage Loans. 

       

      
        	 	
                (a)

              	
                The
                  Depositor, concurrently with the execution and delivery hereof,
                  hereby
                  sells, transfers, assigns, sets over and otherwise conveys to the
                  Trustee
                  for the benefit of the Certificateholders, without recourse, all
                  the
                  right, title and interest of the Depositor in and to the Trust
                  Fund
                  together with (i) the Depositor’s right to (A) require the Seller to
                  cure any breach of a representation or warranty made by the Seller
                  pursuant to the MLPA, or (B) repurchase or substitute for any affected
                  Mortgage Loan in accordance herewith, and (ii) all right, title and
                  interest of the Depositor in, to and under the Servicing Agreement,
                  which
                  right has been assigned to the Depositor pursuant to the
                  MLPA.

              

      

       

      
        	 	
                (b)

              	
                In
                  connection with the transfer and assignment set forth in clause
                  (a) above,
                  the Depositor has delivered or caused to be delivered to the Trustee
                  or
                  the Custodian on its behalf (or, in the case of the Delay Delivery
                  Mortgage Loans, will deliver or cause to be delivered to the Trustee
                  or
                  the Custodian on its behalf within thirty (30) days following the
                  Closing
                  Date) for the benefit of the Certificateholders the following documents
                  or
                  instruments with respect to each Mortgage Loan so
                  assigned:

              

      

       

      
        	 	
                (i)

              	
                (A)
                  the original Mortgage Note endorsed by manual or facsimile signature
                  in
                  blank in the following form: “Pay to the order of ________________,
                  without recourse,” with all intervening endorsements showing a complete
                  chain of endorsement from the originator to the Person endorsing
                  the
                  Mortgage Note (each such endorsement being sufficient to transfer
                  all
                  right, title and interest of the party so endorsing, as noteholder
                  or
                  assignee thereof, in and to that Mortgage Note);
                  or

              

      

       

      
        
          
          

        

        
          40

          
            

          

        

        
          
          

        

         

      

      (B)
        with
        respect to any Lost Mortgage Note, a lost note affidavit from the  Seller
        stating that the original Mortgage Note was lost or destroyed,  together
        with a copy of such Mortgage Note; 

       

      
        	 	
                (ii)

              	
                except
                  as provided below and for each Mortgage Loan that is not a MERS
                  Mortgage
                  Loan, the original recorded Mortgage or a copy of such Mortgage
                  certified
                  by the Seller as being a true and complete copy of the Mortgage,
                  and in
                  the case of each MERS Mortgage Loan, the original recorded Mortgage,
                  noting the presence of the MIN of the Mortgage Loans and either
                  language
                  indicating that the Mortgage Loan is a MOM Loan if the Mortgage
                  Loan is a
                  MOM Loan or if the Mortgage Loan was not a MOM Loan at origination,
                  the
                  original Mortgage and the assignment thereof to MERS, with evidence
                  of
                  recording indicated thereon, or a copy of the Mortgage certified
                  by the
                  Seller as being a true and complete copy of the
                  Mortgage;

              

      

       

      
        	 	
                (iii)

              	
                in
                  the case of a Mortgage Loan that is not a MERS Mortgage Loan, a
                  duly executed assignment of the Mortgage, or a copy of such assignment
                  certified by the Seller as being a true and complete copy of the
                  assignment, in blank (which may be included in a blanket assignment
                  or
                  assignments), together with, except as provided below, all interim
                  recorded assignments, or copies of such interim assignments certified
                  by
                  the Seller as being true and complete copies of the interim assignments,
                  of such Mortgage (each such assignment, when duly and validly completed,
                  to be in recordable form and sufficient to effect the assignment
                  of and
                  transfer to the assignee thereof, under the Mortgage to which the
                  assignment relates); provided that, if the related Mortgage has
                  not been
                  returned from the applicable public recording office, such assignment
                  of
                  the Mortgage may exclude the information to be provided by the
                  recording
                  office;

              

      

       

      
        	 	
                (iv)

              	
                the
                  original or copies of each assumption, modification, written assurance
                  or
                  substitution agreement, if any;

              

      

       

      
        	 	
                (v)

              	
                either
                  the original or duplicate original title policy, or a copy of such
                  title
                  policy certified by the Seller as being a true and complete copy
                  of the
                  title policy (including all riders thereto), with respect to the
                  related
                  Mortgaged Property, if available, provided that the title policy
                  (including all riders thereto) will be delivered as soon as it
                  becomes
                  available, and if the title policy is not available, and to the
                  extent
                  required pursuant to the second paragraph below or otherwise in
                  connection
                  with the rating of the Certificates, a written commitment or interim
                  binder or preliminary report of the title issued by the title insurance
                  or
                  escrow company with respect to the Mortgaged Property, or in
                  lieu
                  thereof, an Alternative Title Product or a copy of such Alternative
                  Title
                  Product certified by the Seller as being a true and complete copy
                  of the
                  Alternative Title Product;
                  and

              

      

       

      
        
          
          

        

        
          41

          
            

          

        

        
          
          

        

      

       

      
        	 	
                (vi)

              	
                in
                  the case of a Cooperative Loan, the originals of the following
                  documents
                  or instruments:

              

      

       

      
        	 	
                1.

              	
                The
                  Coop Shares, together with a stock power in
                  blank;

              

      

       

      
        	 	
                2.

              	
                The
                  executed Security Agreement;

              

      

       

      
        	 	
                3.

              	
                The
                  executed Proprietary Lease;

              

      

       

      
        	 	
                4.

              	
                The
                  executed Recognition Agreement;

              

      

       

      
        	 	
                5.

              	
                The
                  executed UCC-1 financing statement with evidence of recording thereon
                  which have been filed in all places required to perfect the Seller’s
                  interest in the Coop Shares and the Proprietary Lease;
                  and

              

      

       

      
        	 	
                6.

              	
                Executed
                  UCC-3 financing statements or other appropriate UCC financing statements
                  required by state law, evidencing a complete and unbroken line
                  from the
                  mortgagee to the Trustee with evidence of recording thereon (or
                  in a form
                  suitable for recordation)

              

      

       

      In
        the
        event that in connection with any Mortgage Loan that is not a MERS Mortgage
        Loan
        the Depositor cannot deliver (a) the original recorded Mortgage or (b) all
        interim recorded assignments satisfying the requirements of clause (ii) or
        (iii)
        above, respectively, concurrently with the execution and delivery hereof
        because
        such document or documents have not been returned from the applicable public
        recording office, the Depositor shall promptly deliver or cause to be delivered
        to the Trustee or the Custodian on its behalf such original Mortgage or such
        interim assignment, as the case may be, with evidence of recording indicated
        thereon upon receipt thereof from the public recording office, or a copy
        thereof, certified, if appropriate, by the relevant recording office, but
        in no
        event shall any such delivery of the original Mortgage and each such interim
        assignment or a copy thereof, certified, if appropriate, by the relevant
        recording office, be made later than one year following the Closing Date;
        provided, however, in the event the Depositor is unable to deliver or cause
        to
        be delivered by such date each Mortgage and each such interim assignment
        by
        reason of the fact that any such documents have not been returned by the
        appropriate recording office, or, in the case of each such interim assignment,
        because the related Mortgage has not been returned by the appropriate recording
        office, the Depositor shall deliver or cause to be delivered such documents
        to
        the Trustee or the Custodian on its behalf as promptly as possible upon receipt
        thereof and, in any event, within 720 days following the Closing Date. The
        Depositor shall forward or cause to be forwarded to the Trustee or the Custodian
        on its behalf (a) from time to time additional original documents evidencing
        an
        assumption or modification of a Mortgage Loan and (b) any other documents
        required to be delivered by the Depositor or the Master Servicer to the Trustee.
        In the event that the original Mortgage is not delivered and in connection
        with
        the payment in full of the related Mortgage Loan and the public recording
        office
        requires the presentation of a “lost instruments affidavit and indemnity” or any
        equivalent document, because only a copy of the Mortgage can be delivered
        with
        the instrument of satisfaction or reconveyance, the Master Servicer shall
        execute and deliver or cause to be executed and delivered such a document
        to the
        public recording office. In the case where a public recording office retains
        the
        original recorded Mortgage or in the case where a Mortgage is lost after
        recordation in a public recording office, the Depositor shall deliver or
        cause
        to be delivered to the Trustee or the Custodian on its behalf a copy of such
        Mortgage certified by such public recording office to be a true and complete
        copy of the original recorded Mortgage.

       

      
        
          
          

        

        
          42

          
            

          

        

        
          
          

        

      

       

      In
        addition, in the event that in connection with any Mortgage Loan the Depositor
        cannot deliver or cause to be delivered the original or duplicate original
        lender’s title policy (together with all riders thereto), satisfying the
        requirements of clause (v) above, concurrently with the execution and delivery
        hereof because the related Mortgage has not been returned from the applicable
        public recording office, the Depositor shall promptly deliver or cause to
        be
        delivered to the Trustee or the Custodian on its behalf such original or
        duplicate original lender’s title policy (together with all riders thereto) upon
        receipt thereof from the applicable title insurer, but in no event shall
        any
        such delivery of the original or duplicate original lender’s title policy be
        made later than one year following the Closing Date; provided, however, in
        the
        event the Depositor is unable to deliver or cause to be delivered by such
        date
        the original or duplicate original lender’s title policy (together with all
        riders thereto) because the related Mortgage has not been returned by the
        appropriate recording office, the Depositor shall deliver or cause to be
        delivered such documents to the Trustee or the Custodian on its behalf as
        promptly as possible upon receipt thereof and, in any event, within 720 days
        following the Closing Date; provided further, however, that the Depositor
        shall
        not be required to deliver an original or duplicate lender’s title policy
        (together with all riders thereto) if the Depositor delivers an Alternative
        Title Product in lieu thereof. Notwithstanding the preceding, in connection
        with
        any Mortgage Loan for which either the original or duplicate original title
        policy has not been delivered to the Trust, if at any time during the term
        of
        this Agreement the parent company of the Seller does not have a long term
        senior
        debt rating of A- or higher from S&P and A- or higher from Fitch (if rated
        by Fitch), then the Depositor shall within 30 days deliver or cause to be
        delivered to the Trustee or the Custodian on its behalf (if it has not
        previously done so) a written commitment or interim binder or preliminary
        report
        of the title issued by the title insurance or escrow company with respect
        to the
        Mortgaged Property.

       

      Subject
        to the immediately following sentence, as promptly as practicable subsequent
        to
        such transfer and assignment, and in any event, within thirty (30) days
        thereafter, the Master Servicer shall (i) complete each assignment of Mortgage,
        as follows: “First Horizon Mortgage Pass-Through Certificates, Series 2007-3,
        The Bank of New York, as trustee for the holders of the Certificates”, (ii)
        cause such assignment to be in proper form for recording in the appropriate
        public office for real property records and (iii) cause to be delivered for
        recording in the appropriate public office for real property records the
        assignments of the Mortgages to the Trustee, except that, with respect to
        any
        assignments of Mortgage as to which the Master Servicer has not received
        the
        information required to prepare such assignment in recordable form, the Master
        Servicer’s obligation to do so and to deliver the same for such recording shall
        be as soon as practicable after receipt of such information and in any event
        within thirty (30) days after receipt thereof. Notwithstanding the foregoing,
        the Master Servicer need not cause to be recorded any assignment which relates
        to a Mortgage Loan in any state other than the Required Recordation
        States.

       

      
        
          
          

        

        
          43

          
            

          

        

        
          
          

        

      

       

      In
        the
        case of Mortgage Loans that have been prepaid in full as of the Closing Date,
        the Depositor, in lieu of delivering the above documents to the Trustee or
        the
        Custodian on its behalf, will deposit in the Certificate Account the portion
        of
        such payment that is required to be deposited in the Certificate Account
        pursuant to Section 3.8 hereof.

       

      Notwithstanding
        anything to the contrary in this Agreement, within thirty days after the
        Closing
        Date, the Depositor shall either (i) deliver or cause to be delivered to
        the
        Trustee or the Custodian on its behalf the Mortgage File as required pursuant
        to
        this Section 2.1 for each Delay Delivery Mortgage Loan or (ii) (A) substitute
        or
        cause to be substituted a Substitute Mortgage Loan for the Delay Delivery
        Mortgage Loan or (B) repurchase or cause to be repurchased the Delay Delivery
        Mortgage Loan, which substitution or repurchase shall be accomplished in
        the
        manner and subject to the conditions set forth in Section 2.3 (treating each
        Delay Delivery Mortgage Loan as a Deleted Mortgage Loan for purposes of such
        Section 2.3), provided, however, that if the Depositor fails to deliver a
        Mortgage File for any Delay Delivery Mortgage Loan within the thirty-day
        period
        provided in the prior sentence, the Depositor shall use its best reasonable
        efforts to effect or cause to be effected a substitution, rather than a
        repurchase of, such Deleted Mortgage Loan and provided further that the cure
        period provided for in Section 2.2 or in Section 2.3 shall not apply to the
        initial delivery of the Mortgage File for such Delay Delivery Mortgage Loan,
        but
        rather the Depositor shall have five (5) Business Days to cure or cause to
        be
        cured such failure to deliver. At the end of such thirty-day period, the
        Trustee
        or the Custodian, on its behalf shall send a Delay Delivery Certification
        for
        the Delay Delivery Mortgage Loans delivered during such thirty-day period
        in
        accordance with the provisions of Section 2.2. Notwithstanding anything to
        the
        contrary contained in this Agreement, none of the Mortgage Loans in the Trust
        Fund is or will be Delay Delivery Mortgage Loans.

       

      SECTION
        2.2 Acceptance by Trustee of the Mortgage Loans.

       

      The
        Trustee or the Custodian, on behalf of the Trustee, acknowledges receipt
        of the
        documents identified in the Initial Certification in the form annexed hereto
        as
        Exhibit E and declares that it or the Custodian holds and will hold such
        documents and the other documents delivered to it or the Custodian, as
        applicable, constituting the Mortgage Files, and that it or the Custodian,
        as
        applicable, holds or will hold such other assets as are included in the Trust
        Fund, in trust for the exclusive use and benefit of all present and future
        Certificateholders. The Trustee acknowledges that the Custodian will maintain
        possession of the Mortgage Notes in the State of Texas, unless otherwise
        permitted by the Rating Agencies.

       

      The
        Trustee agrees to execute and deliver or to cause the Custodian to execute
        and
        deliver on the Closing Date to the Depositor and the Master Servicer an Initial
        Certification in the form annexed hereto as Exhibit E. Based on its or the
        Custodian’s review and examination, and only as to the documents identified in
        such Initial Certification, the Custodian, on behalf of the Trustee,
        acknowledges that such documents appear regular on their face and relate
        to such
        Mortgage Loan. Neither the Trustee nor the Custodian shall be under any duty
        or
        obligation to inspect, review or examine said documents, instruments,
        certificates or other papers to determine that the same are genuine, enforceable
        or appropriate for the represented purpose or that they have actually been
        recorded in the real estate records or that they are other than what they
        purport to be on their face.

       

      
        
          
          

        

        
          44

          
            

          

        

        
          
          

        

      

       

      On
        or
        about the thirtieth (30th) day after the Closing Date, the Trustee shall
        deliver
        or shall cause the Custodian to deliver to the Depositor and the Master Servicer
        a Delay Delivery Certification in the form annexed hereto as Exhibit F, with
        any
        applicable exceptions noted thereon. Notwithstanding anything to the contrary
        contained in this Agreement, none of the Mortgage Loans in the Trust Fund
        is or
        will be Delay Delivery Mortgage Loans.

       

      Not
        later
        than 90 days after the Closing Date, the Trustee shall deliver or shall cause
        the Custodian to deliver to the Depositor and the Master Servicer a Subsequent
        Certification in the form annexed hereto as Exhibit G, with any applicable
        exceptions noted thereon.

       

      If,
        in
        the course of such review, the Trustee or the Custodian, on behalf of the
        Trustee, finds any document constituting a part of a Mortgage File which
        does
        not meet the requirements of Section 2.1, the Trustee shall list or shall
        cause
        the Custodian to list such as an exception in the Subsequent Certification;
        provided, however that neither the Trustee nor the Custodian shall make any
        determination as to whether (i) any endorsement is sufficient to transfer
        all
        right, title and interest of the party so endorsing, as noteholder or assignee
        thereof, in and to that Mortgage Note or (ii) any assignment is in recordable
        form or is sufficient to effect the assignment of and transfer to the assignee
        thereof under the mortgage to which the assignment relates. The Seller shall
        promptly correct or cure such defect within 90 days from the date it was
        so
        notified of such defect and, if the Seller does not correct or cure such
        defect
        within such period, the Seller shall either (a) substitute for the related
        Mortgage Loan a Substitute Mortgage Loan, which substitution shall be
        accomplished in the manner and subject to the conditions set forth in Section
        2.3, or (b) purchase such Mortgage Loan from the Trustee within 90 days from
        the
        date the Seller was notified of such defect in writing at the Purchase Price
        of
        such Mortgage Loan; provided, however, that in no event shall such substitution
        or purchase occur more than 540 days from the Closing Date, except that if
        the
        substitution or purchase of a Mortgage Loan pursuant to this provision is
        required by reason of a delay in delivery of any documents by the appropriate
        recording office, and there is a dispute between either the Master Servicer
        or
        the Seller and the Trustee over the location or status of the recorded document,
        then such substitution or purchase shall occur within 720 days from the Closing
        Date. The Trustee shall deliver or shall cause the Custodian to deliver written
        notice to each Rating Agency within 270 days from the Closing Date indicating
        each Mortgage Loan (a) which has not been returned by the appropriate recording
        office or (b) as to which there is a dispute as to location or status of
        such
        Mortgage Loan. Such notice shall be delivered every 90 days thereafter until
        the
        related Mortgage Loan is returned to the Trustee or the Custodian on its
        behalf.
        Any such substitution pursuant to (a) above or purchase pursuant to (b) above
        shall not be effected prior to the delivery to the Trustee of the Opinion
        of
        Counsel required by Section 2.5 hereof, if any, and any substitution pursuant
        to
        (a) above shall not be effected prior to the additional delivery to the Trustee
        of a Request for Release substantially in the form of Exhibit L. No substitution
        is permitted to be made in any calendar month after the Determination Date
        for
        such month. The Purchase Price for any such Mortgage Loan shall be deposited
        by
        the Seller in the Certificate Account on or prior to the Distribution Account
        Deposit Date for the Distribution Date in the month following the month of
        repurchase and, upon receipt of such deposit and certification with respect
        thereto in the form of Exhibit M hereto (delivery of which to the Custodian
        will
        be by electronic data transmission or email), the Trustee shall cause the
        Custodian to release the related Mortgage File to the Seller and shall execute
        and deliver at the Seller’s request such instruments of transfer or assignment
        prepared by the Seller, in each case without recourse, as shall be necessary
        to
        vest in the Seller, or a designee, the Trustee’s interest in any Mortgage Loan
        released pursuant hereto. If pursuant to the foregoing provisions the Seller
        repurchases a Mortgage Loan that is a MERS Mortgage Loan, the Master Servicer
        shall either (i) cause MERS to execute and deliver an assignment of the Mortgage
        in recordable form to transfer the Mortgage from MERS to the Seller and shall
        cause such Mortgage to be removed from registration on the MERS® System in
        accordance with MERS’ rules and regulations or (ii) cause MERS to designate on
        the MERS® System the Seller as the beneficial holder of such Mortgage
        Loan.

       

      
        
          
          

        

        
          45

          
            

          

        

        
          
          

        

      

       

      The
        Trustee shall 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 set forth herein. The Master Servicer shall promptly deliver to
        the
        Trustee or the Custodian on its behalf, upon the execution or receipt thereof,
        the originals of such other documents or instruments constituting the Mortgage
        File as come into the possession of the Master Servicer from time to
        time.

       

      It
        is
        understood and agreed that the obligation of the Seller to substitute for
        or to
        purchase any Mortgage Loan which does not meet the requirements of Section
        2.1
        above shall constitute the sole remedy respecting such defect available to
        the
        Trustee, the Depositor and any Certificateholder against the
        Seller.

       

      The
        mortgage loans permitted by the terms of this Agreement to be included in
        the
        Trust Fund are limited to (i) the Mortgage Loans (which the Depositor acquired
        pursuant to the MLPA, which contains, among other representations and
        warranties, a representation and warranty of the Seller that no Mortgage
        Loan is
        a “high cost loan” as defined by the specific applicable local, state or federal
        predatory and abusive lending laws, and (ii) Substitute Mortgage Loans (which,
        by definition as set forth in this Agreement and referred to in the MLPA,
        are
        required to conform to, among other representations and warranties, a
        representation and warranty of the Seller set forth in the MLPA that no
        Substitute Mortgage Loan is a “high cost loan” as defined by the specific
        applicable local, state or federal predatory and abusive lending laws). It
        is
        therefore understood and agreed by the parties hereto that it is not intended
        that any Mortgage Loan be included in the Trust Fund that is a “high cost loan”
as defined by the specific applicable local, state or federal predatory and
        abusive lending laws.

       

      SECTION
        2.3 Representations and Warranties of the Master Servicer; Covenants of the
        Seller. 

       

      
        	 	
                (a)

              	
                The
                  Master Servicer hereby makes the representations and warranties
                  set forth
                  in Schedule II hereto and by this reference incorporated herein,
                  to the
                  Depositor and the Trustee, as of the Closing Date, or if so specified
                  therein, as of the Cut-off Date.

              

      

       

      
        	 	
                (b)

              	
                Upon
                  discovery by any of the parties hereto of a breach of a representation
                  or
                  warranty made pursuant to Schedule B to the MLPA that materially
                  and
                  adversely affects the interests of the Certificateholders in any
                  Mortgage
                  Loan, the party discovering such breach shall give prompt notice
                  thereof
                  to the other parties. The Seller hereby covenants that within 90
                  days of
                  the earlier of its discovery or its receipt of written notice from
                  any
                  party of a breach of any representation or warranty made pursuant
                  to
                  Schedule B to the MLPA which materially and adversely affects the
                  interests of the Certificateholders in any Mortgage Loan, it shall
                  cure
                  such breach in all material respects, and if such breach is not
                  so cured,
                  shall, (i) if such 90-day period expires prior to the second anniversary
                  of the Closing Date, remove such Mortgage Loan (a “Deleted Mortgage Loan”)
                  from the Trust Fund and substitute in its place a Substitute Mortgage
                  Loan, in the manner and subject to the conditions set forth in
                  this
                  Section; or (ii) repurchase the affected Mortgage Loan or Mortgage
                  Loans
                  from the Trustee at the Purchase Price in the manner set forth
                  below;
                  provided, however, that any such substitution pursuant to (i) above
                  shall
                  not be effected prior to the delivery to the Trustee of the Opinion
                  of
                  Counsel required by Section 2.5 hereof, if any, and any such
                  substitution pursuant to (i) above shall not be effected prior
                  to the
                  additional delivery to the Trustee or the Custodian on its behalf
                  of a
                  Request for Release substantially in the form of Exhibit M (delivery
                  of
                  which to the Custodian will be by electronic data transmission
                  or email)
                  and the Mortgage File for any such Substitute Mortgage Loan. The
                  Seller
                  shall promptly reimburse the Master Servicer and the Trustee for
                  any
                  expenses reasonably incurred by the Master Servicer or the Trustee
                  in
                  respect of enforcing the remedies for such breach. With respect
                  to the
                  representations and warranties described in this Section which
                  are made to
                  the best of the Seller’s knowledge, if it is discovered by either the
                  Depositor, the Seller or the Trustee that the substance of such
                  representation and warranty is inaccurate and such inaccuracy materially
                  and adversely affects the value of the related Mortgage Loan or
                  the
                  interests of the Certificateholders therein, notwithstanding the
                  Seller’s
                  lack of knowledge with respect to the substance of such representation
                  or
                  warranty, such inaccuracy shall be deemed a breach of the applicable
                  representation or warranty.

              

      

       

      
        
          
          

        

        
          46

          
            

          

        

        
          
          

        

      

       

      With
        respect to any Substitute Mortgage Loan or Loans, the Seller shall deliver
        to
        the Trustee or the Custodian on its behalf for the benefit of the
        Certificateholders the Mortgage Note, the Mortgage, the related assignment
        of
        the Mortgage, and such other documents and agreements as are required by
        Section
        2.1, with the Mortgage Note endorsed and the Mortgage assigned as required
        by
        Section 2.1. No substitution is permitted to be made in any calendar month
        after
        the Determination Date for such month. Scheduled Payments due with respect
        to
        Substitute Mortgage Loans in the month of substitution shall not be part
        of the
        Trust Fund and will be retained by the Seller on the next succeeding
        Distribution Date. For the month of substitution, distributions to
        Certificateholders will include the monthly payment due on any Deleted Mortgage
        Loan for such month and thereafter the Seller shall be entitled to retain
        all
        amounts received in respect of such Deleted Mortgage Loan. The Master Servicer
        shall amend the Mortgage Loan Schedule for the benefit of the Certificateholders
        to reflect the removal of such Deleted Mortgage Loan and the substitution
        of the
        Substitute Mortgage Loan or Loans and the Master Servicer shall deliver the
        amended Mortgage Loan Schedule to the Trustee. Upon such substitution, the
        Substitute Mortgage Loan or Loans shall be subject to the terms of this
        Agreement in all respects, and the Seller shall be deemed to have made with
        respect to such Substitute Mortgage Loan or Loans, as of the date of
        substitution, the representations and warranties made pursuant to Schedule
        B to
        the MLPA with respect to such Mortgage Loan. Upon any such substitution and
        the
        deposit to the Certificate Account of the amount required to be deposited
        therein in connection with such substitution as described in the following
        paragraph, the Trustee shall , upon the delivery to the Trustee of a Request
        for
        Release in the form of Exhibit L, release or shall cause the Custodian to
        release the Mortgage File held for the benefit of the Certificateholders
        relating to such Deleted Mortgage Loan to the Seller and shall execute and
        deliver at the Seller’s direction such instruments of transfer or assignment
        prepared by the Seller, in each case without recourse, as shall be necessary
        to
        vest title in the Seller, or its designee, the Trustee’s interest in any Deleted
        Mortgage Loan substituted for pursuant to this Section 2.3.

       

      
        
          
          

        

        
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      For
        any
        month in which the Seller substitutes one or more Substitute Mortgage Loans
        for
        one or more Deleted Mortgage Loans, the Master Servicer will determine the
        amount (if any) by which the aggregate principal balance of all such Substitute
        Mortgage Loans as of the date of substitution is less than the aggregate
        Stated
        Principal Balance of all such Deleted Mortgage Loans (after application of
        the
        scheduled principal portion of the monthly payments due in the month of
        substitution). The amount of such shortage (the “Substitution Adjustment
        Amount”) plus an amount equal to the aggregate of any unreimbursed Advances with
        respect to such Deleted Mortgage Loans shall be deposited in the Certificate
        Account by the Seller on or before the Distribution Account Deposit Date
        for the
        Distribution Date in the month succeeding the calendar month during which
        the
        related Mortgage Loan became required to be purchased or replaced
        hereunder.

       

      In
        the
        event that the Seller shall have repurchased a Mortgage Loan, the Purchase
        Price
        therefor shall be deposited in the Certificate Account pursuant to Section
        3.5
        on or before the Distribution Account Deposit Date for the Distribution Date
        in
        the month following the month during which the Seller became obligated hereunder
        to repurchase or replace such Mortgage Loan and upon such deposit of the
        Purchase Price, the delivery of the Opinion of Counsel required by Section
        2.5
        and receipt of a Request for Release in the form of Exhibit M hereto, the
        Trustee shall release or shall cause the Custodian to release the related
        Mortgage File held for the benefit of the Certificateholders to such Person,
        and
        the Trustee shall execute and deliver or shall cause the Custodian to execute
        and deliver at such Person’s direction such instruments of transfer or
        assignment prepared by such Person, in each case without recourse, as shall
        be
        necessary to transfer title from the Trustee. It is understood and agreed
        that
        the obligation under this Agreement of the Seller to cure, repurchase or
        replace
        any Mortgage Loan as to which a breach has occurred and is continuing shall
        constitute the sole remedy against the Seller respecting such breach available
        to Certificateholders, the Depositor or the Trustee on their
        behalf.

       

      After
        giving effect to the sale of the Certificates by the Depositor to the
        Underwriters, and thereafter, so long as any Certificates remain outstanding,
        the Seller, its affiliates and agents, collectively, shall not beneficially
        own
        Certificates the aggregate fair value of which would represent 90% or more
        of
        the beneficial interests in the Trust Fund.

       

      The
        representations and warranties made pursuant to this Section 2.3 shall survive
        delivery of the respective Mortgage Files to the Trustee or the Custodian
        for
        the benefit of the Certificateholders.

       

      
        
          
          

        

        
          48

          
            

          

        

        
          
          

        

      

       

      SECTION
        2.4 Representations and Warranties of the Depositor as to the Mortgage
        Loans.

       

      The
        Depositor hereby represents and warrants to the Trustee with respect to each
        Mortgage Loan as of the date hereof or such other date set forth herein that
        as
        of the Closing Date, and following the transfer of the Mortgage Loans to
        it
        pursuant to the MLPA and immediately prior to the conveyance of the Mortgage
        Loans by it to the Trustee pursuant to Section 2.1(a) hereof, the Depositor
        had
        good title to the Mortgage Loans and the Mortgage Notes were subject to no
        offsets, defenses or counterclaims.

       

      It
        is
        understood and agreed that the representations and warranties set forth in
        this
        Section 2.4 shall survive delivery of the Mortgage Files to the Trustee.
        Upon
        discovery by the Depositor or the Trustee of a breach of any of the foregoing
        representations and warranties set forth in this Section 2.4 (referred to
        herein
        as a “breach”), which breach materially and adversely affects the interest of
        the Certificateholders, the party discovering such breach shall give prompt
        written notice to the others and to each Rating Agency.

       

      SECTION
        2.5 Delivery of Opinion of Counsel in Connection with
        Substitutions.

       

      
        	 	
                (a)

              	
                Notwithstanding
                  any contrary provision of this Agreement, no substitution pursuant
                  to
                  Section 2.2 or Section 2.3 shall be made more than 90 days after
                  the
                  Closing Date unless the Depositor delivers to the Trustee an Opinion
                  of
                  Counsel, which Opinion of Counsel shall not be at the expense of
                  either
                  the Trustee or the Trust Fund, addressed to the Trustee, to the
                  effect
                  that such substitution will not (i) result in the imposition of
                  the tax on
                  “prohibited transactions” on the Trust Fund or contributions after the
                  Startup Date, as defined in Sections 860F(a)(2) and 860G(d) of
                  the Code,
                  respectively, or (ii) cause the REMIC created hereunder to fail
                  to qualify
                  as a REMIC at any time that any Certificates are
                  outstanding.

              

      

       

      
        	 	
                (b)

              	
                Upon
                  discovery by the Depositor, the Master Servicer or the Trustee
                  that any
                  Mortgage Loan does not constitute a “qualified mortgage” within the
                  meaning of Section 860G(a)(3) of the Code, the party discovering
                  such fact
                  shall promptly (and in any event within five (5) Business Days
                  of
                  discovery) give written notice thereof to the other parties. In
                  connection
                  therewith, the Trustee shall require the Depositor to cause the
                  Seller,
                  pursuant to the MLPA and at the Seller’s option, to either (i) substitute,
                  if the conditions in Section 2.3(b) with respect to substitutions
                  are
                  satisfied, a Substitute Mortgage Loan for the affected Mortgage
                  Loan, or
                  (ii) repurchase the affected Mortgage Loan within 90 days of such
                  discovery in the same manner as it would a Mortgage Loan for a
                  breach of
                  representation or warranty made pursuant to Section 2.3. The Trustee
                  shall
                  reconvey or shall cause the Custodian to reconvey to the Seller
                  the
                  Mortgage Loan to be released pursuant hereto in the same manner,
                  and on
                  the same terms and conditions, as it would a Mortgage Loan repurchased
                  for
                  breach of a representation or warranty contained in Section
                  2.3.

              

      

       

      
        
          
          

        

        
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      SECTION
        2.6 Execution and Delivery of Certificates.

       

      The
        Trustee acknowledges the transfer and assignment to it of the Trust Fund
        and,
        concurrently with such transfer and assignment, has executed and delivered
        to or
        upon the order of the Depositor, the Certificates in authorized denominations
        evidencing directly or indirectly the entire ownership of the Trust Fund.
        The
        Trustee agrees to hold the Trust Fund and exercise the rights referred to
        above
        for the benefit of all present and future Holders of the Certificates and
        to
        perform the duties set forth in this Agreement to the best of its ability,
        to
        the end that the interests of the Holders of the Certificates may be
        adequately
        and
        effectively protected.

       

      SECTION
        2.7 REMIC Matters.

       

      The
        Preliminary Statement sets forth the “latest possible maturity date” for federal
        income tax purposes of all REMIC regular interests created hereby. 

       

      The
        assets of the 2007-3 REMIC shall be the assets in the Trust Fund. 

       

      The
        “Startup Day” for purposes of the REMIC Provisions for the 2007-3 REMIC shall be
        the Closing Date. The Tax Matters Person with respect to the 2007-3 REMIC
        shall
        be the Trustee and the Trustee shall hold the Tax Matters Person Certificate.
        The 2007-3 REMIC’s taxable year shall be the calendar year and its accounts
        shall be maintained using the accrual method.

       

      SECTION
        2.8 Covenants of the Master Servicer.

       

      The
        Master Servicer hereby covenants to the Depositor and the Trustee as
        follows:

       

      
        	 	
                (a)

              	
                the
                  Master Servicer shall comply in the performance of its obligations
                  under
                  this Agreement with all reasonable rules and requirements of the
                  insurer
                  under each Required Insurance Policy;
                  and

              

      

       

      
        	 	
                (b)

              	
                no
                  written information, certificate of an officer, statement furnished
                  in
                  writing or written report delivered to the Depositor, any affiliate
                  of the
                  Depositor or the Trustee and prepared by the Master Servicer pursuant
                  to
                  this Agreement will contain any untrue statement of a material
                  fact or
                  omit to state a material fact necessary to make such information,
                  certificate, statement or report not
                  misleading.

              

      

       

      ARTICLE
        III

      ADMINISTRATION
        AND SERVICING OF MORTGAGE LOANS

       

      SECTION
        3.1 Master Servicer to Service Mortgage Loans.

       

      For
        and
        on behalf of the Certificateholders, the Master Servicer shall service and
        administer the Mortgage Loans in accordance with the terms of (i) the
        Servicing Rights Transfer and Subservicing Agreement, pursuant to which First
        Tennessee Mortgage Services, Inc. engaged the Master Servicer to subservice
        the
        Mortgage Loans, (ii) this Agreement and (iii) the customary and usual standards
        of practice of prudent mortgage loan servicers;
        provided that if there is a conflict between the terms of the Servicing
        Agreement and the Servicing Rights Transfer and Subservicing Agreement, on
        the
        one hand, and this Agreement, on the other hand, the terms of this Agreement
        shall prevail.
        In
        connection with such servicing and administration, the Master Servicer shall
        have full power and authority, acting alone and/or through Subservicers as
        provided in Section 3.2 hereof, to do or cause to be done any and all things
        that it may deem necessary or desirable in connection with such servicing
        and
        administration, including but not limited to, the power and authority, subject
        to the terms hereof (i) to execute and deliver, on behalf of the
        Certificateholders and the Trustee, customary consents or waivers and other
        instruments and documents, (ii) to consent to transfers of any Mortgaged
        Property and assumptions of the Mortgage Notes and related Mortgages (but
        only
        in the manner provided in this Agreement), (iii) to collect any Insurance
        Proceeds and other Liquidation Proceeds, and (iv) to effectuate foreclosure
        or
        other conversion of the ownership of the Mortgaged Property securing any
        Mortgage Loan; provided that the Master Servicer shall not take any action
        that
        is inconsistent with or prejudices the interests of the Trust Fund or the
        Certificateholders in any Mortgage Loan or the rights and interests of the
        Depositor, the Trustee and the Certificateholders under this Agreement. The
        Master Servicer shall represent and protect the interests of the Trust Fund
        in
        the same manner as it protects its own interests in mortgage loans in its
        own
        portfolio in any claim, proceeding or litigation regarding a Mortgage Loan,
        and
        shall not make or permit any modification, waiver or amendment of any Mortgage
        Loan which would cause the REMIC created hereunder to fail to qualify as
        a REMIC
        or result in the imposition of any tax under Section 860F(a) or Section 860G(d)
        of the Code. Without limiting the generality of the foregoing, the Master
        Servicer, in its own name or in the name of the Depositor and the Trustee,
        is
        hereby authorized and empowered by the Depositor and the Trustee, when the
        Master Servicer believes it appropriate in its reasonable judgment, to execute
        and deliver, on behalf of the Trustee, the Depositor, the Certificateholders
        or
        any of them, any and all instruments of satisfaction or cancellation, or
        of
        partial or full release or discharge and all other comparable instruments,
        with
        respect to the Mortgage Loans, and with respect to the Mortgaged Properties
        held
        for the benefit of the Certificateholders. The Master Servicer shall prepare
        and
        deliver to the Depositor and/or the Trustee such documents requiring execution
        and delivery by either or both of them as are necessary or appropriate to
        enable
        the Master Servicer to service and administer the Mortgage Loans to the extent
        that the Master Servicer is not permitted to execute and deliver such documents
        pursuant to the preceding sentence. Upon receipt of such documents, the
        Depositor and/or the Trustee shall execute such documents and deliver them
        to
        the Master Servicer. The Master Servicer further is authorized and empowered
        by
        the Trustee, on behalf of the Certificateholders and the Trustee, in its
        own
        name or in the name of the Subservicer, when the Master Servicer or the
        Subservicer as the case may be, believes it appropriate in its best judgment
        to
        register any Mortgage Loan on the MERS® System, or cause the removal from the
        registration of any Mortgage Loan on the MERS® System, to execute and deliver,
        on behalf of the Trustee and the Certificateholders or any of them, any and
        all
        instruments of assignment and other comparable instruments with respect to
        such
        assignment or re-recording of a Mortgage in the name of MERS, solely as nominee
        for the Trustee and its successors and assigns.

       

      
        
          
          

        

        
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      In
        accordance with the standards of the preceding paragraph, the Master Servicer
        shall advance or cause to be advanced funds as necessary for the purpose
        of
        effecting the payment of taxes and assessments on the Mortgaged Properties,
        which advances shall be reimbursable in the first instance from related
        collections from the Mortgagors pursuant to Section 3.6, and further as provided
        in Section 3.8. The costs incurred by the Master Servicer, if any, in effecting
        the timely payments of taxes and assessments on the Mortgaged Properties
        and
        related insurance premiums shall not, for the purpose of calculating monthly
        distributions to the Certificateholders, be added to the Stated Principal
        Balances of the related Mortgage Loans, notwithstanding that the terms of
        such
        Mortgage Loans so permit.

       

      
        
          
          

        

        
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      SECTION
        3.2 Subservicing; Enforcement of the Obligations of Servicers.

       

      
        	 	
                (a)

              	
                The
                  Master Servicer may arrange for the subservicing of any Mortgage
                  Loan by a
                  Subservicer pursuant to a subservicing agreement; provided, however,
                  that
                  such subservicing arrangement and the terms of the related subservicing
                  agreement must provide for the servicing of such Mortgage Loans
                  in a
                  manner consistent with the servicing arrangements contemplated
                  hereunder.
                  Unless the context otherwise requires, references in this Agreement
                  to
                  actions taken or to be taken by the Master Servicer in servicing
                  the
                  Mortgage Loans include actions taken or to be taken by a Subservicer
                  on
                  behalf of the Master Servicer. Notwithstanding the provisions of
                  any
                  subservicing agreement, any of the provisions of this Agreement
                  relating
                  to agreements or arrangements between the Master Servicer and a
                  Subservicer or reference to actions taken through a Subservicer
                  or
                  otherwise, the Master Servicer shall remain obligated and liable
                  to the
                  Depositor, the Trustee and the Certificateholders for the servicing
                  and
                  administration of the Mortgage Loans in accordance with the provisions
                  of
                  this Agreement without diminution of such obligation or liability
                  by
                  virtue of such subservicing agreements or arrangements or by virtue
                  of
                  indemnification from the Subservicer and to the same extent and
                  under the
                  same terms and conditions as if the Master Servicer alone were
                  servicing
                  and administering the Mortgage Loans. All actions of each Subservicer
                  performed pursuant to the related subservicing agreement shall
                  be
                  performed as an agent of the Master Servicer with the same force
                  and
                  effect as if performed directly by the Master
                  Servicer.

              

      

       

      
        	 	
                (b)

              	
                For
                  purposes of this Agreement, the Master Servicer shall be deemed
                  to have
                  received any collections, recoveries or payments with respect to
                  the
                  Mortgage Loans that are received by a Subservicer regardless of
                  whether
                  such payments are remitted by the Subservicer to the Master
                  Servicer.

              

      

       

      SECTION
        3.3 Rights of the Depositor and the Trustee in Respect of the Master
        Servicer.

       

      The
        Depositor may, but is not obligated to, enforce the obligations of the Master
        Servicer hereunder and may, but is not obligated to, perform, or cause a
        designee to perform, any defaulted obligation of the Master Servicer hereunder
        and in connection with any such defaulted obligation to exercise the related
        rights of the Master Servicer hereunder; provided that the Master Servicer
        shall
        not be relieved of any of its obligations hereunder by virtue of such
        performance by the Depositor or its designee. Neither the Trustee nor the
        Depositor shall have any responsibility or liability for any action or failure
        to act by the Master Servicer nor shall the Trustee or the Depositor be
        obligated to supervise the performance of the Master Servicer hereunder or
        otherwise.

       

      
        
          
          

        

        
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      SECTION
        3.4 Trustee to Act as Master Servicer.

       

      In
        the
        event that the Master Servicer shall for any reason no longer be the Master
        Servicer hereunder (including by reason of an Event of Default), the Trustee
        or
        its successor shall thereupon assume all of the rights and obligations of
        the
        Master Servicer hereunder arising thereafter (except that the Trustee shall
        not
        be (i) liable for losses of the Master Servicer pursuant to Section 3.9
        hereof or any acts or omissions of the predecessor Master Servicer hereunder),
        (ii) obligated to make Advances if it is prohibited from doing so by applicable
        law, (iii) obligated to effectuate repurchases or substitutions of Mortgage
        Loans hereunder including, but not limited to, repurchases or substitutions
        of
        Mortgage Loans pursuant to Section 2.2 or 2.3 hereof, (iv) responsible for
        expenses of the Master Servicer pursuant to Section 2.3 or (v) deemed to
        have
        made any representations and warranties of the Master Servicer hereunder).
        Any
        such assumption shall be subject to Section 7.2 hereof. If the Master Servicer
        shall for any reason no longer be the Master Servicer (including by reason
        of
        any Event of Default), the Trustee or its successor shall succeed to any
        rights
        and obligations of the Master Servicer under each subservicing
        agreement.

       

      The
        Master Servicer shall, upon request of the Trustee, but at the expense of the
        Master Servicer, deliver to the assuming party all documents and records
        relating to each subservicing agreement or substitute subservicing agreement
        and
        the Mortgage Loans then being serviced thereunder and an accounting of amounts
        collected or held by it and otherwise use its best efforts to effect the
        orderly
        and efficient transfer of the substitute subservicing agreement to the assuming
        party.

       

      SECTION
        3.5 Collection of Mortgage Loan Payments; Certificate Account; Distribution
        Account.

       

      
        	 	
                (a)

              	
                The
                  Master Servicer shall make reasonable efforts in accordance with
                  the
                  customary and usual standards of practice of prudent mortgage servicers
                  to
                  collect all payments called for under the terms and provisions
                  of the
                  Mortgage Loans to the extent such procedures shall be consistent
                  with this
                  Agreement and the terms and provisions of any related Required
                  Insurance
                  Policy. Consistent with the foregoing, the Master Servicer may
                  in its
                  discretion (i) waive any late payment charge or any prepayment
                  charge or
                  penalty interest in connection with the prepayment of a Mortgage
                  Loan and
                  (ii) extend the due dates for payments due on a Mortgage Note for
                  a period
                  not greater than 180 days; provided, however, that the Master Servicer
                  cannot extend the maturity of any such Mortgage Loan past the date
                  on
                  which the final payment is due on the latest maturing Mortgage
                  Loan as of
                  the Cut-off Date. In the event of any such arrangement, the Master
                  Servicer shall make Advances on the related Mortgage Loan in accordance
                  with the provisions of Section 4.1 during the scheduled period
                  in
                  accordance with the amortization schedule of such Mortgage Loan
                  without
                  modification thereof by reason of such arrangements. The Master
                  Servicer
                  shall not be required to institute or join in litigation with respect
                  to
                  collection of any payment (whether under a Mortgage, Mortgage Note
                  or
                  otherwise or against any public or governmental authority with
                  respect to
                  a taking or condemnation) if it reasonably believes that enforcing
                  the
                  provision of the Mortgage or other instrument pursuant to which
                  such
                  payment is required is prohibited by applicable
                  law.

              

      

       

      
        
          
          

        

        
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                (b)

              	
                The
                  Master Servicer shall establish and maintain the Certificate Account
                  into
                  which the Master Servicer shall deposit or cause to be deposited
                  no later
                  than two Business Days after receipt, except as otherwise specifically
                  provided herein, the following payments and collections remitted
                  by
                  Subservicers or received by it in respect of the Mortgage Loans
                  subsequent
                  to the Cut-off Date (other than in respect of principal and interest
                  due
                  on the Mortgage Loans on or before the Cut-off Date) and the following
                  amounts required to be deposited
                  hereunder:

              

      

       

      
        	 	
                (i)

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

              

      

       

      
        	 	
                (ii)

              	
                all
                  payments on account of interest on the Mortgage Loans in the Mortgage
                  Pool, net of the related Master Servicing Fee, any Prepayment Interest
                  Excess and any Retained Yield;

              

      

       

      
        	 	
                (iii)

              	
                all
                  Insurance Proceeds and Liquidation Proceeds in respect of the related
                  Mortgage Loans, other than proceeds to be applied to the restoration
                  or
                  repair of the Mortgaged Property or released to the Mortgagor in
                  accordance with the Master Servicer’s normal servicing
                  procedures;

              

      

       

      
        	 	
                (iv)

              	
                any
                  amount required to be deposited by the Master Servicer pursuant
                  to Section
                  3.5(c) in connection with any losses on Permitted
                  Investments;

              

      

       

      
        	 	
                (v)

              	
                any
                  amounts required to be deposited by the Master Servicer pursuant
                  to
                  Sections 3.9(b) and 3.9(d);

              

      

       

      
        	 	
                (vi)

              	
                any
                  Substitution Adjustment Amounts or the Purchase Price for any Deleted
                  Mortgage Loan;

              

      

       

      
        	 	
                (vii)

              	
                all
                  Advances made by the Master Servicer pursuant to Section 4.1;
                  and

              

      

       

      
        	 	
                (viii)

              	
                any
                  other amounts required to be deposited
                  hereunder.

              

      

       

      In
        addition, with respect to any Mortgage Loan that is subject to a buydown
        agreement, on each Due Date for such Mortgage Loan, in addition to the monthly
        payment remitted by the Mortgagor, the Master Servicer shall cause funds
        to be
        deposited into the Certificate Account in an amount required to cause an
        amount
        of interest to be paid with respect to such Mortgage Loan equal to the amount
        of
        interest that has accrued on such Mortgage Loan from the preceding Due Date
        at
        the related Adjusted Mortgage Rate on such date.

       

      The
        foregoing requirements for remittance by the Master Servicer shall be exclusive,
        it being understood and agreed that, without limiting the generality of the
        foregoing, payments in the nature of prepayment penalties, late payment charges,
        assumption fees or amounts attributable to reimbursements of Advances, if
        collected, need not be remitted by the Master Servicer. In the event that
        the
        Master Servicer shall remit any amount not required to be remitted, it may
        at
        any time withdraw or direct the institution maintaining the Certificate Account
        to withdraw such amount from the Certificate Account, any provision herein
        to
        the contrary notwithstanding. Such withdrawal or direction may be accomplished
        by delivering written notice thereof to the Trustee or such other institution
        maintaining the Certificate Account which describes the amounts deposited
        in
        error in the Certificate Account. The Master Servicer shall maintain adequate
        records with respect to all withdrawals made pursuant to this Section. All
        funds
        deposited in the Certificate Account shall be held in trust for the
        Certificateholders until withdrawn in accordance with Section 3.8.

       

      
        
          
          

        

        
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                (c)

              	
                The
                  Trustee shall establish and maintain, on behalf of the Certificateholders,
                  the Distribution Account, into which the Trustee shall, promptly
                  upon
                  receipt, deposit and retain therein the
                  following:

              

      

       

      
        	 	
                (i)

              	
                the
                  aggregate amount remitted by the Master Servicer to the Trustee
                  pursuant
                  to Section 3.8(a)(ix);

              

      

       

      
        	 	
                (ii)

              	
                any
                  amount deposited by the Master Servicer pursuant to this Section
                  3.5(c) in
                  connection with any losses on Permitted Investments;
                  and

              

      

       

      
        	 	
                (iii)

              	
                any
                  other amounts deposited hereunder which are required to be deposited
                  in
                  the Distribution Account.

              

      

       

      In
        the
        event that the Master Servicer shall remit any amount not required to be
        remitted, it may at any time direct the Trustee to withdraw such amount from
        the
        Distribution Account, any provision herein to the contrary notwithstanding.
        Such
        direction may be accomplished by delivering an Officer’s Certificate to the
        Trustee which describes the amounts deposited in error in the Distribution
        Account. All funds deposited in the Distribution Account shall be held by
        the
        Trustee in trust for the Certificateholders until disbursed in accordance
        with
        this Agreement or withdrawn in accordance with Section 3.8. In no event shall
        the Trustee incur liability for withdrawals from the Distribution Account
        at the
        direction of the Master Servicer.

       

      (iv) The
        institution at which the Certificate Account is maintained shall invest funds
        as
        directed by the Master Servicer in Permitted Investments which shall mature
        not
        later than the second Business Day next preceding the related Distribution
        Account Deposit Date (except that if such Permitted Investment is an obligation
        of the institution that maintains such account, then such Permitted Investment
        shall mature not later than the Business Day next preceding such Distribution
        Account Deposit Date) and, shall not be sold or disposed of prior to its
        maturity. If the Master Servicer does not provide such prior written investment
        direction, the funds in the Certificate Account will be held uninvested.
        All
        such Permitted Investments shall be made in the name of the Trustee, for
        the
        benefit of the Certificateholders. All income and gain net of any losses
        realized from any such investment of funds on deposit in the Certificate
        Account
        shall be for the benefit of the Master Servicer as servicing compensation.
        The
        amount of any losses in the Certificate Account in respect of any such
        investments shall promptly be deposited by the Master Servicer in the
        Certificate Account. The funds in the Distribution Account shall be held
        uninvested. The Trustee in its fiduciary capacity shall not be liable for
        the
        amount of any loss incurred in respect of any investment or lack of investment
        of funds held in the Certificate Account or the Distribution Account and
        made in
        accordance with this Section 3.5.

       

      
        
          
          

        

        
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      (v) The
        Master Servicer shall give notice to the Trustee, the Seller, each Rating
        Agency
        and the Depositor of any proposed change of the location of the Certificate
        Account prior to any change thereof. The Trustee shall give notice to the
        Master
        Servicer, the Seller, each Rating Agency and the Depositor of any proposed
        change of the location of the Distribution Account prior to any change
        thereof.

       

      SECTION
        3.6 Collection of Taxes, Assessments and Similar Items; Escrow
        Accounts.

       

      
        	 	
                (a)

              	
                To
                  the extent required by the related Mortgage Note and not violative
                  of
                  current law, the Master Servicer shall establish and maintain one
                  or more
                  accounts (each, an “Escrow Account”) and deposit and retain therein all
                  collections from the Mortgagors (or advances by the Master Servicer)
                  for
                  the payment of taxes, assessments, hazard insurance premiums or
                  comparable
                  items for the account of the Mortgagors. Nothing herein shall require
                  the
                  Master Servicer to compel a Mortgagor to establish an Escrow Account
                  in
                  violation of applicable law.

              

      

       

      
        	 	
                (b)

              	
                Withdrawals
                  of amounts so collected from the Escrow Accounts may be made only
                  to
                  effect timely payment of taxes, assessments, hazard insurance premiums,
                  condominium or PUD association dues, or comparable items, to reimburse
                  the
                  Master Servicer out of related collections for any payments made
                  pursuant
                  to Sections 3.1 hereof (with respect to taxes and assessments and
                  insurance premiums) and 3.9 hereof (with respect to hazard insurance),
                  to
                  refund to any Mortgagors any sums determined to be overages, to
                  pay
                  interest, if required by law or the terms of the related Mortgage
                  or
                  Mortgage Note, to Mortgagors on balances in the Escrow Account
                  or to clear
                  and terminate the Escrow Account at the termination of this Agreement
                  in
                  accordance with Section 9.1 hereof. The Escrow Accounts shall not
                  be a
                  part of the Trust Fund.

              

      

       

      
        	 	
                (c)

              	
                The
                  Master Servicer shall advance any payments referred to in Section
                  3.6(a)
                  that are not timely paid by the Mortgagors on the date when the
                  tax,
                  premium or other cost for which such payment is intended is due,
                  but the
                  Master Servicer shall be required so to advance only to the extent
                  that
                  such advances, in the good faith judgment of the Master Servicer,
                  will be
                  recoverable by the Master Servicer out of Insurance Proceeds, Liquidation
                  Proceeds or otherwise.

              

      

       

      
        
          
          

        

        
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      SECTION
        3.7 Access to Certain Documentation and Information Regarding the Mortgage
        Loans.

       

      The
        Master Servicer shall afford the Depositor and the Trustee reasonable access
        to
        all records and documentation regarding the Mortgage Loans and all accounts,
        insurance information and other matters relating to this Agreement, such
        access
        being afforded without charge, but only upon reasonable request and during
        normal business hours at the office designated by the Master
        Servicer.

       

      Upon
        reasonable advance notice in writing, the Master Servicer will provide to
        each
        Certificateholder or Certificate Owner which is a savings and loan association,
        bank or insurance company certain reports and reasonable access to information
        and documentation regarding the Mortgage Loans sufficient to permit such
        Certificateholder or Certificate Owner to comply with applicable regulations
        of
        the OTS or other regulatory authorities with respect to investment in the
        Certificates; provided that the Master Servicer shall be entitled to be
        reimbursed by each such Certificateholder or Certificate Owner for actual
        expenses incurred by the Master Servicer in providing such reports and
        access.

       

      SECTION
        3.8 Permitted Withdrawals from the Certificate Account and Distribution
        Account.

       

      
        	 	
                (a)

              	
                The
                  Master Servicer may from time to time, or shall (in the case of
                  Section
                  3.8(a)(ix)), make withdrawals from the Certificate Account for
                  the
                  following purposes:

              

      

       

      
        	 	
                (i)

              	
                to
                  the extent not previously retained by the Master Servicer, to pay
                  the
                  Retained Yield to (a) First Horizon, in its individual capacity
                  as Seller,
                  or (b) a
                  subsequent owner of such Retained Yield through Seller’s sale, assignment,
                  or certification of its rights to such Retained Yield,
                  and to pay to the Master Servicer the master servicing compensation
                  to
                  which it is entitled pursuant to Section 3.14, and earnings on
                  or
                  investment income with respect to funds in or credited to the Certificate
                  Account as additional master servicing
                  compensation;

              

      

       

      
        	 	
                (ii)

              	
                to
                  the extent not previously retained by the Master Servicer, to reimburse
                  the Master Servicer for unreimbursed Advances made by it, such
                  right of
                  reimbursement pursuant to this subclause (ii) being limited to
                  amounts
                  received on the Mortgage Loan(s) in respect of which any such Advance
                  was
                  made;

              

      

       

      
        	 	
                (iii)

              	
                to
                  reimburse the Master Servicer for any Nonrecoverable Advance previously
                  made;

              

      

       

      
        	 	
                (iv)

              	
                to
                  reimburse the Master Servicer for Insured Expenses from the related
                  Insurance Proceeds;

              

      

       

      
        	 	
                (v)

              	
                to
                  reimburse the Master Servicer for (a) unreimbursed Servicing Advances,
                  the
                  Master Servicer’s right to reimbursement pursuant to this clause (a) with
                  respect to any Mortgage Loan being limited to amounts received
                  on such
                  Mortgage Loan(s) which represent late recoveries of the payments
                  for which
                  such advances were made pursuant to Section 3.1 or Section 3.6
                  and (b) for
                  unpaid Master Servicing Fees as provided in Section 3.11
                  hereof;

              

      

       

      
        
          
          

        

        
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                (vi)

              	
                to
                  pay to the Seller or Master Servicer, as applicable, with respect
                  to each
                  Mortgage Loan or property acquired in respect thereof that has
                  been
                  purchased pursuant to Section 2.2, 2.3 or 3.11, all amounts received
                  thereon after the date of such
                  purchase;

              

      

       

      
        	 	
                (vii)

              	
                to
                  reimburse the Seller, the Master Servicer or the Depositor for
                  expenses
                  incurred by any of them and reimbursable pursuant to Section 6.3
                  hereof;

              

      

       

      
        	 	
                (viii)

              	
                to
                  withdraw any amount deposited in the Certificate Account and not
                  required
                  to be deposited therein; 

              

      

       

      
        	 	
                (ix)

              	
                on
                  or prior to the Distribution Account Deposit Date, to withdraw
                  an amount
                  equal to the related Available Funds and the Trustee Fee for such
                  Distribution Date and remit such amount to the Trustee for deposit
                  in the
                  Distribution Account; and

              

      

       

      
        	 	
                (x)

              	
                to
                  clear and terminate the Certificate Account upon termination of
                  this
                  Agreement pursuant to Section 9.1
                  hereof.

              

      

       

      The
        Master Servicer shall keep and maintain separate accounting, on a Mortgage
        Loan-by-Mortgage Loan basis, for the purpose of justifying any withdrawal
        from
        the Certificate Account pursuant to such subclauses (i), (ii), (iv), (v)
        and
        (vi). Prior to making any withdrawal from the Certificate Account pursuant
        to
        subclause (iii), the Master Servicer shall deliver to the Trustee an Officer’s
        Certificate of a Servicing Officer indicating the amount of any previous
        Advance
        determined by the Master Servicer to be a Nonrecoverable Advance and identifying
        the related Mortgage Loans(s), and their respective portions of such
        Nonrecoverable Advance.

       

      The
        Master Servicer shall distribute the Retained Yield, if any, to (i) First
        Horizon, in its individual capacity as Seller, or (ii) a
        subsequent owner of the Retained Yield through Seller’s sale, assignment, or
        certification of its rights to such Retained Yield,
        on each
        Distribution Account Deposit Date during the term of this
        Agreement.

       

      
        	 	
                (b)

              	
                The
                  Trustee shall withdraw funds from the Distribution Account for
                  distributions to the Certificateholders in the manner specified
                  in this
                  Agreement (and to withhold from the amounts so withdrawn, the amount
                  of
                  any taxes that it is authorized to withhold pursuant to the last
                  paragraph
                  of Section 8.11). In addition, the Trustee may (and with respect
                  to
                  clauses (i) and (ii) below, shall), prior to making the distribution
                  pursuant to Section 4.2 from time to time make withdrawals from
                  the
                  Distribution Account for the following purposes:
                  

              

      

       

      
        	 	
                (i)

              	
                to
                  pay to itself the Trustee Fee for the related Distribution
                  Date;

              

      

       

      
        
          
          

        

        
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                (ii)

              	
                to
                  withdraw and return to the Master Servicer any amount deposited
                  in the
                  Distribution Account and not required to be deposited therein;
                  and

              

      

       

      
        	 	
                (iii)

              	
                to
                  clear and terminate the Distribution Account upon termination of
                  the
                  Agreement pursuant to Section 9.1
                  hereof.

              

      

       

      SECTION
        3.9 Maintenance of Hazard Insurance; Maintenance of Primary Insurance
        Policies.

       

      
        	 	
                (a)

              	
                The
                  Master Servicer shall cause to be maintained, for each Mortgage
                  Loan,
                  hazard insurance with extended coverage in an amount not to exceed
                  the
                  highest value placed by the insurer on the improvements securing
                  such
                  Mortgage Loan. The required coverage under any such hazard insurance
                  policy will be equal to the lesser of (i) the aggregate principal
                  amount
                  of all liens against the related Mortgaged Property, including
                  the
                  proposed loan/line amount as long as it equals at least 80% of
                  the value
                  of the improvements/replacement cost of the structure, and (ii)
                  the
                  replacement cost of the insurable improvements securing such Mortgage
                  Loan. Each such policy of standard hazard insurance shall contain,
                  or have
                  an accompanying endorsement that contains, a standard mortgagee
                  clause.
                  Any amounts collected by the Master Servicer under any such policies
                  (other than the amounts to be applied to the restoration or repair
                  of the
                  related Mortgaged Property or amounts released to the Mortgagor
                  in
                  accordance with the Master Servicer’s normal servicing procedures) shall
                  be deposited in the Certificate Account. Any cost incurred by the
                  Master
                  Servicer in maintaining any such insurance shall not, for the purpose
                  of
                  calculating monthly distributions to the Certificateholders or
                  remittances
                  to the Trustee for their benefit, be added to the principal balance
                  of the
                  Mortgage Loan, notwithstanding that the terms of the Mortgage Loan
                  so
                  permit. Such costs shall be recoverable by the Master Servicer
                  out of late
                  payments by the related Mortgagor or out of Liquidation Proceeds
                  to the
                  extent permitted by Section 3.8 hereof. It is understood and agreed
                  that
                  no earthquake or other additional insurance is to be required of
                  any
                  Mortgagor or maintained on property acquired in respect of a Mortgage
                  other than pursuant to such applicable laws and regulations as
                  shall at
                  any time be in force and as shall require such additional insurance.
                  If
                  the Mortgaged Property is located at the time of origination of
                  the
                  Mortgage Loan in a federally designated special flood hazard area
                  and such
                  area is participating in the national flood insurance program,
                  the Master
                  Servicer shall cause flood insurance to be maintained with respect
                  to such
                  Mortgage Loan. Such flood insurance shall be in an amount equal
                  to the
                  least of (i) the original principal balance of the related Mortgage
                  Loan,
                  (ii) the replacement value of the improvements which are part of
                  such
                  Mortgaged Property, and (iii) the maximum amount of such insurance
                  available for the related Mortgaged Property under the national
                  flood
                  insurance program.

              

      

       

      
        	 	
                (b)

              	
                In
                  the event that the Master Servicer shall obtain and maintain a
                  blanket
                  policy insuring against hazard losses on all of the Mortgage Loans,
                  it
                  shall conclusively be deemed to have satisfied its obligations
                  as set
                  forth in the first sentence of this Section, it being understood
                  and
                  agreed that such policy may contain a deductible clause on terms
                  substantially equivalent to those commercially available and maintained
                  by
                  comparable servicers. If such policy contains a deductible clause,
                  the
                  Master Servicer shall, in the event that there shall not have been
                  maintained on the related Mortgaged Property a policy complying
                  with the
                  first sentence of this Section, and there shall have been a loss
                  that
                  would have been covered by such policy, deposit in the Certificate
                  Account
                  the amount not otherwise payable under the blanket policy because
                  of such
                  deductible clause. In connection with its activities as Master
                  Servicer of
                  the Mortgage Loans, the Master Servicer agrees to present, on behalf
                  of
                  itself, the Depositor, and the Trustee for the benefit of the
                  Certificateholders, claims under any such blanket
                  policy.

              

      

       

      
        
          
          

        

        
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                (c)

              	
                The
                  Master Servicer shall not take any action which would result in
                  non-coverage under any applicable Primary Insurance Policy of any
                  loss
                  which, but for the actions of the Master Servicer, would have been
                  covered
                  thereunder. The Master Servicer shall not cancel or refuse to renew
                  any
                  such Primary Insurance Policy that is in effect at the date of
                  the initial
                  issuance of the Certificates and is required to be kept in force
                  hereunder
                  unless the replacement Primary Insurance Policy for such canceled
                  or
                  non-renewed policy is maintained with a Qualified
                  Insurer.

              

      

       

      The
        Master Servicer shall not be required to maintain any Primary Insurance Policy
        (i) with respect to any Mortgage Loan with a Loan-to-Value Ratio less than
        or
        equal to 80% as of any date of determination or, based on a new appraisal,
        the
        principal balance of such Mortgage Loan represents 80% or less of the new
        appraised value or (ii) if maintaining such Primary Insurance Policy is
        prohibited by applicable law.

       

      The
        Master Servicer agrees to effect the timely payment of the premiums on each
        Primary Insurance Policy, and such costs not otherwise recoverable shall
        be
        recoverable by the Master Servicer from the related liquidation
        proceeds.

       

      
        	 	
                (d)

              	
                In
                  connection with its activities as Master Servicer of the Mortgage
                  Loans,
                  the Master Servicer agrees to present on behalf of itself, the
                  Trustee and
                  Certificateholders, claims to the insurer under any Primary Insurance
                  Policies and, in this regard, to take such reasonable action as
                  shall be
                  necessary to permit recovery under any Primary Insurance Policies
                  respecting defaulted Mortgage Loans. Any amounts collected by the
                  Master
                  Servicer under any Primary Insurance Policies shall be deposited
                  in the
                  Certificate Account.

              

      

       

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

       

      
        	 	
                (a)

              	
                Except
                  as otherwise provided in this Section, when any property subject
                  to a
                  Mortgage has been conveyed by the Mortgagor, the Master Servicer
                  shall to
                  the extent that it has knowledge of such conveyance, enforce any
                  due-on-sale clause contained in any Mortgage Note or Mortgage,
                  to the
                  extent permitted under applicable law and governmental regulations,
                  but
                  only to the extent that such enforcement will not adversely affect
                  or
                  jeopardize coverage under any Required Insurance Policy. Notwithstanding
                  the foregoing, the Master Servicer is not required to exercise
                  such rights
                  with respect to a Mortgage Loan if the Person to whom the related
                  Mortgaged Property has been conveyed or is proposed to be conveyed
                  satisfies the terms and conditions contained in the Mortgage Note
                  and
                  Mortgage related thereto and the consent of the mortgagee under
                  such
                  Mortgage Note or Mortgage is not otherwise so required under such
                  Mortgage
                  Note or Mortgage as a condition to such transfer. In the event
                  that the
                  Master Servicer is prohibited by law from enforcing any such due-on-sale
                  clause, or if coverage under any Required Insurance Policy would
                  be
                  adversely affected, or if nonenforcement is otherwise permitted
                  hereunder,
                  the Master Servicer is authorized, subject to Section 3.10(b),
                  to take or
                  enter into an assumption and modification agreement from or with
                  the
                  person to whom such property has been or is about to be conveyed,
                  pursuant
                  to which such person becomes liable under the Mortgage Note and,
                  unless
                  prohibited by applicable state law, the Mortgagor remains liable
                  thereon,
                  provided that the Mortgage Loan shall continue to be covered (if
                  so
                  covered before the Master Servicer enters such agreement) by the
                  applicable Required Insurance Policies. The Master Servicer, subject
                  to
                  Section 3.10(b), is also authorized with the prior approval of
                  the
                  insurers under any Required Insurance Policies to enter into a
                  substitution of liability agreement with such Person, pursuant
                  to which
                  the original Mortgagor is released from liability and such Person
                  is
                  substituted as Mortgagor and becomes liable under the Mortgage
                  Note.
                  Notwithstanding the foregoing, the Master Servicer shall not be
                  deemed to
                  be in default under this Section by reason of any transfer or assumption
                  which the Master Servicer reasonably believes it is restricted
                  by law from
                  preventing, for any reason
                  whatsoever.

              

      

       

      
        
          
          

        

        
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                (b)

              	
                Subject
                  to the Master Servicer’s duty to enforce any due-on-sale clause to the
                  extent set forth in Section 3.10(a) hereof, in any case in which
                  a
                  Mortgaged Property has been conveyed to a Person by a Mortgagor,
                  and such
                  Person is to enter into an assumption agreement or modification
                  agreement
                  or supplement to the Mortgage Note or Mortgage that requires the
                  signature
                  of the Trustee, or if an instrument of release signed by the Trustee
                  is
                  required releasing the Mortgagor from liability on the Mortgage
                  Loan, the
                  Master Servicer shall prepare and deliver or cause to be prepared
                  and
                  delivered to the Trustee for signature and shall direct, in writing,
                  the
                  Trustee to execute the assumption agreement with the Person to
                  whom the
                  Mortgaged Property is to be conveyed and such modification agreement
                  or
                  supplement to the Mortgage Note or Mortgage or other instruments
                  as are
                  reasonable or necessary to carry out the terms of the Mortgage
                  Note or
                  Mortgage or otherwise to comply with any applicable laws regarding
                  assumptions or the transfer of the Mortgaged Property to such Person.
                  In
                  connection with any such assumption, no material term of the Mortgage
                  Note
                  may be changed. In addition, the substitute Mortgagor and the Mortgaged
                  Property must be acceptable to the Master Servicer in accordance
                  with its
                  underwriting standards as then in effect. Together with each such
                  substitution, assumption or other agreement or instrument delivered
                  to the
                  Trustee for execution by it, the Master Servicer shall deliver
                  an
                  Officer’s Certificate signed by a Servicing Officer stating that the
                  requirements of this subsection have been met in connection therewith.
                  The
                  Master Servicer shall notify the Trustee that any such substitution
                  or
                  assumption agreement has been completed by forwarding to the Trustee
                  the
                  original of such substitution or assumption agreement, which in
                  the case
                  of the original shall be added to the related Mortgage File and
                  shall, for
                  all purposes, be considered a part of such Mortgage File to the
                  same
                  extent as all other documents and instruments constituting a part
                  thereof.
                  Any fee collected by the Master Servicer for entering into an assumption
                  or substitution of liability agreement will be retained by the
                  Master
                  Servicer as additional servicing
                  compensation.

              

      

       

      
        
          
          

        

        
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      SECTION
        3.11 Realization Upon Defaulted Mortgage Loans; Repurchase of Certain Mortgage
        Loans.

       

      The
        Master Servicer shall use reasonable efforts to foreclose upon or otherwise
        comparably convert the ownership of properties securing such of the Mortgage
        Loans as come into and continue in default and as to which no satisfactory
        arrangements can be made for collection of delinquent payments. In connection
        with such foreclosure or other conversion, the Master Servicer shall follow
        such
        practices and procedures as it shall deem necessary or advisable and as shall
        be
        normal and usual in its general mortgage servicing activities and meet the
        requirements of the insurer under any Required Insurance Policy; provided,
        however, that the Master Servicer shall not be required to expend its own
        funds
        in connection with any foreclosure or towards the restoration of any property
        unless it shall determine (i) that such restoration and/or foreclosure will
        increase the proceeds of liquidation of the Mortgage Loan after reimbursement
        to
        itself of such expenses and (ii) that such expenses will be recoverable to
        it
        through Liquidation Proceeds (respecting which it shall have priority for
        purposes of withdrawals from the Certificate Account). The Master Servicer
        shall
        be responsible for all other costs and expenses incurred by it in any such
        proceedings; provided, however, that it shall be entitled to reimbursement
        thereof from the liquidation proceeds with respect to the related Mortgaged
        Property, as provided in the definition of Liquidation Proceeds. If the Master
        Servicer has knowledge that a Mortgaged Property which the Master Servicer
        is
        contemplating acquiring in foreclosure or by deed in lieu of foreclosure
        is
        located within a 1 mile radius of any site listed in the Expenditure Plan
        for
        the Hazardous Substance Clean Up Bond Act of 1984 or other site with
        environmental or hazardous waste risks known to the Master Servicer, the
        Master
        Servicer will, prior to acquiring the Mortgaged Property, consider such risks
        and only take action in accordance with its established environmental review
        procedures.

       

      With
        respect to any REO Property, the deed or certificate of sale shall be taken
        in
        the name of the Trust Fund for the benefit of the Certificateholders, or
        its
        nominee, on behalf of the Certificateholders. The Master Servicer shall ensure
        that the title to such REO Property references the Pooling and Servicing
        Agreement and the Trust Fund’s capacity thereunder. Pursuant to its efforts to
        sell such REO Property, the Master Servicer shall either itself or through
        an
        agent selected by the Master Servicer protect and conserve such REO Property
        in
        the same manner and to such extent as is customary in the locality where
        such
        REO Property is located. The Master Servicer shall perform the tax reporting
        and
        withholding required by Sections 1445 and 6050J of the Code with respect
        to
        foreclosures and abandonments, the tax reporting required by Section 6050H
        of
        the Code with respect to the receipt of mortgage interest from individuals
        and
        any tax reporting required by Section 6050P of the Code with respect to the
        cancellation of indebtedness by certain financial entities, by preparing
        such
        tax and information returns as may be required, in the form required, and
        delivering the same to the Trustee for filing.

       

      
        
          
          

        

        
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      In
        the
        event that the Trust Fund acquires any Mortgaged Property as aforesaid or
        otherwise in connection with a default or imminent default on a Mortgage
        Loan,
        the Master Servicer shall dispose of such Mortgaged Property prior to the
        close
        of the third taxable year after the taxable year of its acquisition by the
        Trust
        Fund unless the Trustee shall have been supplied with an Opinion of Counsel
        to
        the effect that the holding by the Trust Fund of such Mortgaged Property
        subsequent to such three-year period will not result in the imposition of
        taxes
        on “prohibited transactions” of the REMIC created hereunder as defined in
        Section 860F of the Code or cause the REMIC created hereunder to fail to
        qualify
        as a REMIC at any time that any Certificates are outstanding, in which case
        the
        Trust Fund may continue to hold such Mortgaged Property (subject to any
        conditions contained in such Opinion of Counsel). Notwithstanding any other
        provision of this Agreement, no Mortgaged Property acquired by the Trust
        Fund
        shall be rented (or allowed to continue to be rented) or otherwise used for
        the
        production of income by or on behalf of the Trust Fund in such a manner or
        pursuant to any terms that would (i) cause such Mortgaged Property to fail
        to
        qualify as “foreclosure property” within the meaning of Section 860G(a)(8) of
        the Code or (ii) subject the REMIC created hereunder to the imposition of
        any
        federal, state or local income taxes on the income earned from such Mortgaged
        Property under Section 860G(c) of the Code or otherwise, unless the Master
        Servicer has agreed to indemnify and hold harmless the Trust Fund with respect
        to the imposition of any such taxes.

       

      In
        the
        event of a default on a Mortgage Loan one or more of whose obligor is not
        a
        United States Person, as that term is defined in Section 7701(a)(30) of the
        Code, in connection with any foreclosure or acquisition of a deed in lieu
        of
        foreclosure (together, “foreclosure”) in respect of such Mortgage Loan, the
        Master Servicer will cause compliance with the provisions of Treasury Regulation
        Section 1.1445-2(d)(3) (or any successor thereto) necessary to assure that
        no
        withholding tax obligation arises with respect to the proceeds of such
        foreclosure except to the extent, if any, that proceeds of such foreclosure
        are
        required to be remitted to the obligors on such Mortgage Loan.

       

      The
        decision of the Master Servicer to foreclose on a defaulted Mortgage Loan
        shall
        be subject to a determination by the Master Servicer that the proceeds of
        such
        foreclosure would exceed the costs and expenses of bringing such a proceeding.
        The income earned from the management of any REO Properties, net of
        reimbursement to the Master Servicer for expenses incurred (including any
        property or other taxes) in connection with such management and net of
        unreimbursed Master Servicing Fees, Advances and Servicing Advances, shall
        be
        applied to the payment of principal of and interest on the related defaulted
        Mortgage Loans (with interest accruing as though such Mortgage Loans were
        still
        current) and all such income shall be deemed, for all purposes in this
        Agreement, to be payments on account of principal and interest on the related
        Mortgage Notes and shall be deposited into the Certificate Account. To the
        extent the net income received during any calendar month is in excess of
        the
        amount attributable to amortizing principal and accrued interest at the related
        Mortgage Rate on the related Mortgage Loan for such calendar month, such
        excess
        shall be considered to be a partial prepayment of principal of the related
        Mortgage Loan.

       

      The
        proceeds from any liquidation of a Mortgage Loan, as well as any income from
        an
        REO Property, will be applied in the following order of priority: first,
        to
        reimburse the Master Servicer for any related unreimbursed Servicing Advances
        and Master Servicing Fees; second, to reimburse the Master Servicer for any
        unreimbursed Advances; third, to reimburse the Certificate Account for any
        Nonrecoverable Advances (or portions thereof) that were previously withdrawn
        by
        the Master Servicer pursuant to Section 3.8(a)(iii) that related to such
        Mortgage Loan; fourth, to accrued and unpaid interest (to the extent no Advance
        has been made for such amount or any such Advance has been reimbursed) on
        the
        Mortgage Loan or related REO Property, at the Adjusted Net Mortgage Rate
        to the
        Due Date occurring in the month in which such amounts are required to be
        distributed; and fifth, as a recovery of principal of the Mortgage Loan.
        Excess
        Proceeds, if any, from the liquidation of a Liquidated Mortgage Loan will
        be
        retained by the Master Servicer as additional servicing compensation pursuant
        to
        Section 3.14.

       

      
        
          
          

        

        
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      The
        Master Servicer, with the consent of the Trustee, shall have the right to
        purchase for its own account from the Trust Fund any Mortgage Loan which
        is 91
        days or more delinquent at a price equal to the Purchase Price. The Purchase
        Price for any Mortgage Loan purchased hereunder shall be deposited in the
        Certificate Account and the Trustee, upon receipt of a certificate from the
        Master Servicer in the form of Exhibit M hereto, shall release or cause to
        be
        released to the purchaser of such Mortgage Loan the related Mortgage File
        and
        shall execute and deliver such instruments of transfer or assignment prepared
        by
        the purchaser of such Mortgage Loan, in each case without recourse, as shall
        be
        necessary to vest in the purchaser of such Mortgage Loan any Mortgage Loan
        released pursuant hereto and the purchaser of such Mortgage Loan shall succeed
        to all the Trustee’s right, title and interest in and to such Mortgage Loan and
        all security and documents related thereto. Such assignment shall be an
        assignment outright and not for security. The purchaser of such Mortgage
        Loan
        shall thereupon own such Mortgage Loan, and all security and documents, free
        of
        any further obligation to the Trustee or the Certificateholders with respect
        thereto.

       

      SECTION
        3.12 Trustee to Cooperate; Release of Mortgage Files.

       

      Upon
        the
        payment in full of any Mortgage Loan, or the receipt by the Master Servicer
        of a
        notification that payment in full will be escrowed in a manner customary
        for
        such purposes, the Master Servicer will immediately notify the Trustee by
        delivering, or causing to be delivered a “Request for Release” substantially in
        the form of Exhibit M. Upon receipt of such request, the Trustee shall or
        shall
        cause the Custodian to promptly release the related Mortgage File to the
        Master
        Servicer, and the Trustee shall at the Master Servicer’s direction execute and
        deliver to the Master Servicer the request for reconveyance, deed of
        reconveyance or release or satisfaction of mortgage or such instrument releasing
        the lien of the Mortgage in each case provided by the Master Servicer, together
        with the Mortgage Note with written evidence of cancellation thereon. Expenses
        incurred in connection with any instrument of satisfaction or deed of
        reconveyance shall be chargeable to the related Mortgagor. From time to time
        and
        as shall be appropriate for the servicing or foreclosure of any Mortgage
        Loan,
        including for such purpose, collection under any policy of flood insurance,
        any
        fidelity bond or errors or omissions policy, or for the purposes of effecting
        a
        partial release of any Mortgaged Property from the lien of the Mortgage or
        the
        making of any corrections to the Mortgage Note or the Mortgage or any of
        the
        other documents included in the Mortgage File, the Trustee shall, upon delivery
        to the Trustee of a Request for Release in the form of Exhibit L signed by
        a
        Servicing Officer, release the Mortgage File to the Master Servicer. Subject
        to
        the further limitations set forth below, the Master Servicer shall cause
        the
        Mortgage File or documents so released to be returned to the Trustee or its
        Custodian when the need therefor by the Master Servicer no longer exists,
        unless
        the Mortgage Loan is liquidated and the proceeds thereof are deposited in
        the
        Certificate Account, in which case the Master Servicer shall deliver to the
        Trustee a Request for Release in the form of Exhibit M, signed by a Servicing
        Officer.

       

      
        
          
          

        

        
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      If
        the
        Master Servicer at any time seeks to initiate a foreclosure proceeding in
        respect of any Mortgaged Property as authorized by this Agreement, the Master
        Servicer shall deliver or cause to be delivered to the Trustee, for signature,
        as appropriate, any court pleadings, requests for trustee’s sale or other
        documents necessary to effectuate such foreclosure or any legal action brought
        to obtain judgment against the Mortgagor on the Mortgage Note or the Mortgage
        or
        to obtain a deficiency judgment or to enforce any other remedies or rights
        provided by the Mortgage Note or the Mortgage or otherwise available at law
        or
        in equity.

       

      SECTION
        3.13 Documents Records and Funds in Possession of Master Servicer to be Held
        for
        the Trustee.

       

      Notwithstanding
        any other provisions of this Agreement, the Master Servicer shall transmit
        to
        the Trustee as required by this Agreement all documents and instruments in
        respect of a Mortgage Loan coming into the possession of the Master Servicer
        from time to time and shall account fully to the Trustee for any funds received
        by the Master Servicer or which otherwise are collected by the Master Servicer
        as Liquidation Proceeds or Insurance Proceeds in respect of any Mortgage
        Loan.
        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, including but
        not
        limited to, any funds on deposit in the Certificate Account, shall be held
        by
        the Master Servicer for and on behalf of the Trustee and shall be and remain
        the
        sole and exclusive property of the Trustee, subject to the applicable provisions
        of this Agreement. The Master Servicer also agrees that it shall not create,
        incur or subject any Mortgage File or any funds that are deposited in the
        Certificate Account, Distribution Account or any Escrow Account, or any funds
        that otherwise are or may become due or payable to the Trustee for the benefit
        of the Certificateholders, to any claim, lien, security interest, judgment,
        levy, writ of attachment or other encumbrance, or assert by legal action
        or
        otherwise any claim or right of setoff against any Mortgage File or any funds
        collected on, or in connection with, a Mortgage Loan, except, however, that
        the
        Master Servicer shall be entitled to set off against and deduct from any
        such
        funds any amounts that are properly due and payable to the Master Servicer
        under
        this Agreement.

       

      SECTION
        3.14 Master Servicing Compensation.

       

      As
        compensation for its activities as Master Servicer hereunder and as a
        subservicer pursuant to the Servicing Rights Transfer and Subservicing
        Agreement, the Master Servicer shall be entitled to retain or withdraw from
        the
        Certificate Account an amount equal to the Master Servicing Fee for each
        Mortgage Loan, provided that the aggregate Master Servicing Fee with respect
        to
        any Distribution Date shall be reduced (i) by the amount of any Compensating
        Interest paid by the Master Servicer with respect to such Distribution Date,
        and
        (ii) with respect to the first Distribution Date, an amount equal to any
        amount
        to be deposited into the Distribution Account by the Depositor pursuant to
        Section 2.1(a) and not so deposited.

       

      
        
          
          

        

        
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      Additional
        servicing compensation in the form of (i) Excess Proceeds, Prepayment Interest
        Excess and all income and gain net of any losses realized from Permitted
        Investments and (ii) prepayment penalties, assumption fees and late payment
        charges in each case under the circumstances and in the manner set forth
        in the
        applicable Mortgage Note or Mortgage shall be retained by the Master Servicer
        to
        the extent not required to be deposited in the Certificate Account pursuant
        to
        Section 3.5 hereof. The Master Servicer shall be required to pay all expenses
        incurred by it in connection with its master servicing activities hereunder
        (including payment of any premiums for hazard insurance and any Primary
        Insurance Policy and maintenance of the other forms of insurance coverage
        required by this Agreement) and shall not be entitled to reimbursement therefor
        except as specifically provided in this Agreement.

       

      SECTION
        3.15 Access to Certain Documentation.

       

      The
        Master Servicer shall provide to the OTS and the FDIC and to comparable
        regulatory authorities supervising Holders of Certificates or Certificate
        Owners
        and the examiners and supervisory agents of the OTS, the FDIC and such other
        authorities, access to the documentation regarding the Mortgage Loans required
        by applicable regulations of the OTS and the FDIC. Such access shall be afforded
        without charge, but only upon reasonable and prior written request and during
        normal business hours at the offices designated by the Master Servicer. Nothing
        in this Section shall limit the obligation of the Master Servicer to observe
        any
        applicable law prohibiting disclosure of information regarding the Mortgagors
        and the failure of the Master Servicer to provide access as provided in this
        Section as a result of such obligation shall not constitute a breach of this
        Section.

       

      SECTION
        3.16 Annual Statement as to Compliance.

       

      
        	 	
                (a)

              	
                The
                  Master Servicer shall deliver to the Depositor and the Trustee
                  on or
                  before March 15th
                  of
                  each year, commencing in 2008, an Officer’s Certificate stating, as to the
                  signer thereof, that (i) a review of the activities of the Master
                  Servicer
                  during the preceding calendar year (or applicable portion thereof)
                  and of
                  the performance of the Master Servicer under this Agreement has
                  been made
                  under such officer’s supervision and (ii) to the best of such officer’s
                  knowledge, based on such review, the Master Servicer has fulfilled
                  all its
                  obligations under this Agreement in all material respects throughout
                  such
                  year (or applicable portion thereof), or, if there has been a failure
                  to
                  fulfill any such obligation in any material respect, specifying
                  each such
                  failure known to such officer and the status
                  thereof.

              

      

       

      
        	 	
                (b)

              	
                The
                  Master Servicer shall cause each Subservicer that is a Reporting
                  Subcontractor to deliver to the Depositor and the Trustee on or
                  before
                  March 15th
                  of
                  each year, commencing in 2008, an Officer’s Certificate stating, as to the
                  signer thereof, that (i) a review of the activities of such Subservicer
                  during the preceding calendar year (or applicable portion thereof)
                  and of
                  the performance of the Subservicer under the applicable Subservicing
                  Agreement or primary servicing agreement, has been made under such
                  officer’s supervision and (ii) to the best of such officer’s knowledge,
                  based on such review, such Subservicer has fulfilled all its obligations
                  under the applicable Subservicing Agreement or primary servicing
                  agreement, in all material respects throughout such year (or applicable
                  portion thereof), or, if there has been a failure to fulfill any
                  such
                  obligation in any material respect, specifying each such failure
                  known to
                  such officer and the nature and status
                  thereof.

              

      

       

      
        
          
          

        

        
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      SECTION
        3.17 Errors and Omissions Insurance; Fidelity Bonds.

       

      The
        Master Servicer shall for so long as it acts as master servicer under this
        Agreement, obtain and maintain in force (a) a policy or policies of insurance
        covering errors and omissions in the performance of its obligations as Master
        Servicer hereunder and (b) a fidelity bond in respect of its officers, employees
        and agents. Each such policy or policies and bond shall, together, comply
        with
        the requirements from time to time of FNMA or FHLMC for persons performing
        servicing for mortgage loans purchased by FNMA or FHLMC. In the event that
        any
        such policy or bond ceases to be in effect, the Master Servicer shall obtain
        a
        comparable replacement policy or bond from an insurer or issuer, meeting
        the
        requirements set forth above as of the date of such replacement.

       

      ARTICLE
        IV

       

      DISTRIBUTIONS
        AND ADVANCES BY THE MASTER SERVICER

       

      SECTION
        4.1 Advances.

       

      The
        Master Servicer shall determine on the Business Day prior to each Master
        Servicer Advance Date whether it is required to make an Advance pursuant
        to the
        definition thereof. If the Master Servicer determines it is required to make
        an
        Advance, it shall, on or before the Master Servicer Advance Date, either
        (i)
        deposit into the Certificate Account an amount equal to the Advance or (ii)
        make
        an appropriate entry in its records relating to the Certificate Account that
        any
        Amount Held for Future Distribution has been used by the Master Servicer
        in
        discharge of its obligation to make any such Advance. Any funds so applied
        shall
        be replaced by the Master Servicer by deposit in the Certificate Account
        no
        later than the close of business on the next Business Day preceding the next
        Master Servicer Advance Date. The Master Servicer shall be entitled to be
        reimbursed from the Certificate Account for all Advances of its own funds
        made
        pursuant to this Section as provided in Section 3.8. The obligation to make
        Advances with respect to any Mortgage Loan shall continue until the ultimate
        disposition of the REO Property or Mortgaged Property relating to such Mortgage
        Loan. As to any Distribution Date, the Master Servicer shall inform the Trustee
        in writing of the amount of the Advance to be made by the Master Servicer
        on
        each Master Servicer Advance Date no later 1:30 p.m. Central time on the
        second
        Business Day immediately preceding such Distribution Date.

       

      The
        Master Servicer shall deliver to the Trustee on the related Master Servicer
        Advance Date an Officer’s Certificate of a Servicing Officer indicating the
        amount of any proposed Advance determined by the Master Servicer to be a
        Nonrecoverable Advance.

       

      SECTION
        4.2 Priorities of Distribution.

       

      
        	 	
                (a)

              	
                On
                  each Distribution Date, the Trustee shall withdraw the Available
                  Funds
                  from the Distribution Account and apply such funds to distributions
                  on the
                  Certificates in the following order and priority and, in each case,
                  to the
                  extent of Available Funds
                  remaining:

              

      

       

      
        
          
          

        

        
          67

          
            

          

        

        
          
          

        

      

       

      
        	 	
                (i)

              	
                to
                  the Classes of Senior Certificates entitled to distributions of
                  interest,
                  the Accrued Certificate Interest on each such Class for such Distribution
                  Date, any shortfall in available amounts being allocated among
                  such
                  Classes in proportion to the amount of Accrued Certificate Interest
                  otherwise distributable thereon (or added to the balance thereof)
                  provided,
                  however,
                  that on each Distribution Date through the Accretion Termination
                  Date,
                  such amounts with respect to the Accrual Certificates will not
                  be
                  distributed to such Certificates under this priority (i) but will
                  instead
                  be added to the Class Certificate Balance thereof and distributed
                  in the
                  manner described below in subsection
                  (c);

              

      

       

      
        	 	
                (ii)

              	
                to
                  the Classes of Senior Certificates, any Accrued Certificate Interest
                  thereon remaining undistributed from previous Distribution Dates,
                  to the
                  extent of remaining Available Funds, any shortfall in available
                  amounts
                  being allocated among such Classes in proportion to the amount
                  of such
                  Accrued Certificate Interest remaining undistributed for each such
                  Class
                  for such Distribution Date; provided,
                  however,
                  that on each Distribution Date through the Accretion Termination
                  Date,
                  such amounts with respect to the Accrual Certificates will not
                  be
                  distributed to such Certificates under this priority (ii) but will
                  instead
                  be added to the Class Certificate Balance thereof, to the extent
                  not
                  previously added pursuant to priority first above, and distributed
                  in the
                  manner described below in subsection
                  (c);

              

      

       

      
        	 	
                (iii)

              	
                (1)
                  to the Classes of Senior Certificates entitled to distributions
                  of
                  principal, other than the Class PO Certificates, in reduction of
                  the Class
                  Certificate Balances thereof, to the extent of remaining Available
                  Funds,
                  the Senior Optimal Principal Amount for such Distribution Date,
                  (in
                  the order of priority set forth below in Section 4.2(b)),
                  until the respective Class Certificate Balances thereof have been
                  reduced
                  to zero, and (2) concurrently with the Senior Certificates, from
                  the
                  Available Funds, to the Class PO Certificates, in reduction of
                  the Class
                  Certificate Balance thereof, the Class PO Principal Distribution
                  Amount
                  for such Distribution Date until the Class Certificate Balance
                  thereof has
                  been reduced to zero; 

              

      

       

      
        	 	
                (iv)

              	
                to
                  the Class PO Certificates, the Class PO Deferred Amount for such
                  Distribution Date, until the Class Certificate Balance thereof
                  has been
                  reduced to zero; provided that, (1) on any Distribution Date,
                  distributions pursuant to this Section 4.2(a)(iv) shall not exceed
                  the
                  Subordinated Optimal Principal Amount for such Distribution Date,
                  (2) such
                  distributions shall not reduce the Class Certificate Balances of
                  the Class
                  PO Certificates and (3) no distribution will be made in respect
                  of the
                  Class PO Deferred Amount after the Cross-over
                  Date;

              

      

       

      
        
          
          

        

        
          68

          
            

          

        

        
          
          

        

      

       

      
        	 	
                (v)

              	
                to
                  the Class B-1 Certificates, to the extent of remaining Available
                  Funds, in
                  the following order: (1) the Accrued Certificate Interest thereon
                  for such
                  Distribution Date, (2) any Accrued Certificate Interest thereon
                  remaining
                  undistributed from previous Distribution Dates and (3) such Class’
                  Allocable Share for such Distribution
                  Date;

              

      

       

      
        	 	
                (vi)

              	
                to
                  the Class B-2 Certificates, to the extent of remaining Available
                  Funds, in
                  the following order: (1) the Accrued Certificate Interest thereon
                  for such
                  Distribution Date, (2) any Accrued Certificate Interest thereon
                  remaining
                  undistributed from previous Distribution Dates and (3) such Class’
                  Allocable Share for such Distribution
                  Date;

              

      

       

      
        	 	
                (vii)

              	
                to
                  the Class B-3 Certificates, to the extent of remaining Available
                  Funds, in
                  the following order: (1) the Accrued Certificate Interest thereon
                  for such
                  Distribution Date, (2) any Accrued Certificate Interest thereon
                  remaining
                  undistributed from previous Distribution Dates and (3) such Class’
                  Allocable Share for such Distribution
                  Date;

              

      

       

      
        	 	
                (viii)

              	
                to
                  the Class B-4 Certificates, to the extent of remaining Available
                  Funds, in
                  the following order: (1) the Accrued Certificate Interest thereon
                  for such
                  Distribution Date, (2) any Accrued Certificate Interest thereon
                  remaining
                  undistributed from previous Distribution Dates and (3) such Class’
                  Allocable Share for such Distribution
                  Date;

              

      

       

      
        	 	
                (ix)

              	
                to
                  the Class B-5 Certificates, to the extent of remaining Available
                  Funds, in
                  the following order: (1) the Accrued Certificate Interest thereon
                  for such
                  Distribution Date, (2) any Accrued Certificate Interest thereon
                  remaining
                  undistributed from previous Distribution Dates and (3) such Class’
                  Allocable Share for such Distribution Date;
                  and

              

      

       

      
        	 	
                (x)

              	
                to
                  the Class B-6 Certificates, to the extent of remaining Available
                  Funds, in
                  the following order: (1) the Accrued Certificate Interest thereon
                  for such
                  Distribution Date, (2) any Accrued Certificate Interest thereon
                  remaining
                  undistributed from previous Distribution Dates and (3) such Class’
                  Allocable Share for such Distribution
                  Date;

              

      

       

      
        	 	
                (b)

              	
                Amounts
                  allocated to the Senior Certificates pursuant to clause (1) of
                  Section
                  4.2(a)(iii) above will be distributed sequentially, in the following
                  order
                  of priority:

              

      

       

      
        	 	
                (i)

              	
                to
                  the Class A-R Certificates, until the Class Certificate Balance
                  thereof
                  has been reduced to zero;

              

      

       

      
        	 	
                (ii)

              	
                concurrently,
                  as follows:

              

      

       

      
        	 	
                (A)

              	
                23.0449898118%
                  of the remaining Senior Optimal Principal Amount for such Distribution
                  Date, to the Class A-1 Certificates, until the Class Certificate
                  Balance
                  thereof has been reduced to zero;

              

      

       

      
        
          
          

        

        
          69

          
            

          

        

        
          
          

        

      

       

      
        	 	
                (B)

              	
                76.9550101882%
                  of the remaining Senior Optimal Principal Amount for such Distribution
                  Date, to the Class A-2, Class A-3, Class A-4 and Class A-5 Certificates,
                  in the following order of priority:

              

      

       

      
        	 	
                i.

              	
                to
                  the Class A-4 Certificates, in an amount up to the NAS Principal
                  Distribution Amount for such Distribution Date, until the Class
                  Certificate Balance thereof has been reduced to
                  zero;

              

      

       

      
        	 	
                ii.

              	
                sequentially,
                  to the Class A-2, Class A-3 and Class A-5 Certificates, in that
                  order,
                  until the respective Class Certificate Balances of each has been
                  reduced
                  to zero; and

              

      

       

      
        	 	
                iii.

              	
                to
                  the Class A-4 Certificates, without regard to the NAS Principal
                  Distribution Amount for such Distribution Date, until the Class
                  Certificate Balance thereof has been reduced to
                  zero.

              

      

       

      
        	 	
                (c)

              	
                On
                  each distribution date prior to the Accretion Termination Date
                  for the
                  Class A-5 Certificates, the Accrual Amount related to the Class
                  A-5
                  Certificates on such date will be distributed (prior to giving
                  effect to
                  the distributions above), sequentially, as follows:
                  

              

      

       

      
        	 	
                (i)

              	
                to
                  the Class A-3 Certificates, until the Class Certificate Balance
                  thereof
                  has been reduced to zero; and

              

      

       

      
        	 	
                (ii)

              	
                to
                  the Class A-5 Certificates, until the Class Certificate Balance
                  thereof
                  has been reduced to zero.

              

      

       

      
        	 	
                (d)

              	
                On
                  each Distribution Date, the Trustee shall distribute to the Holders
                  of the
                  Class A-R Certificates, any Available Funds remaining in the REMIC
                  created
                  hereunder for such Distribution Date after application of all amounts
                  described in clauses (a) through (c) and (e). Any distributions
                  pursuant
                  to this subsection (d) shall not reduce the Class Certificate Balance
                  of
                  the Class A-R Certificates.

              

      

       

      
        	 	
                (e)

              	
                On
                  and after the Cross-Over Date, the amount distributable to the
                  Senior
                  Certificates pursuant to Section 4.2(a)(iii) for the related Distribution
                  Date shall be allocated among the Classes of Senior Certificates
                  (other
                  than the Class PO Certificates), pro
                  rata,
                  on the basis of their respective Class Certificate Balances immediately
                  prior to such Distribution Date, regardless of the priorities and
                  amounts
                  set forth in Sections 4.2(a) through (c)
                  above.

              

      

       

      
        	 	
                (f)

              	
                If
                  on any Distribution Date (i) the Class Certificate Balance of any
                  Class of
                  Subordinated Certificates (other than the Class of Subordinated
                  Certificates with the highest priority of distribution) for which
                  the
                  related Class Prepayment Distribution Trigger was satisfied on
                  such
                  Distribution Date is reduced to zero and (ii) amounts distributable
                  to
                  such Class or Classes of Subordinated Certificates pursuant to
                  clauses
                  (2), (3) and (5) of the applicable Subordinated Optimal Principal
                  Amount
                  remain undistributed on such Distribution Date after all amounts
                  otherwise
                  distributable on such date pursuant to clauses (v) through (x)
                  of Section
                  4.2(a) have been distributed, such amounts, to the extent of such
                  Class’
                  remaining Allocable Share, shall be distributed on such Distribution
                  Date
                  to the remaining Classes of Subordinated Certificates on a pro
                  rata basis,
                  subject to the priority of payments described in clauses (v) through
                  (x)
                  of Section 4.2(a) .

              

      

       

      
        
          
          

        

        
          70

          
            

          

        

        
          
          

        

      

       

      
        	 	
                (g)

              	
                In
                  the event that in any calendar month the Master Servicer recovers
                  an
                  amount, net of reimbursable expenses (an “Unanticipated Recovery”), in
                  respect of principal of a Mortgage Loan which had previously been
                  allocated as a Realized Loss to any Class of Certificates pursuant
                  to
                  Section 4.4, on the Distribution Date in the next succeeding calendar
                  month, the Trustee shall withdraw the Unanticipated Recovery from
                  the
                  Distribution Account and sequentially increase, in order of payment
                  priority, the Class Certificate Balance of each Class of Certificates
                  to
                  which such Realized Losses were previously allocated by the amount
                  of such
                  Unanticipated Recovery, but not to exceed the amount of Realized
                  Losses
                  previously allocated to such Class pursuant to Section 4.4, and
                  shall
                  distribute the amount of such Unanticipated Recovery in the order
                  of
                  payment priority described in Section 4.2(a) of this Agreement.
                  Holders of
                  any Class of Certificates for which the Class Certificate Balance
                  has been
                  increased by the amount of any Unanticipated Recovery will not
                  be entitled
                  to any payment in respect of Accrued Certificate Interest on the
                  amount of
                  any such increase for any Interest Accrual Period preceding the
                  Distribution Date on which such increase occurs. When the Class
                  Certificate Balance of a Class of Certificates has been reduced
                  to zero,
                  the Holders of such Class shall not be entitled to any share of
                  an
                  Unanticipated Recovery, and such Unanticipated Recovery shall be
                  allocated
                  among all outstanding Classes of Certificates entitled thereto
                  in
                  accordance with the preceding sentence, subject to the remainder
                  of this
                  subsection (g). In the event that (i) any Unanticipated Recovery
                  remains
                  undistributed in accordance with the preceding sentence or (ii)
                  the amount
                  of an Unanticipated Recovery exceeds the amount of the Realized
                  Loss
                  previously allocated to any outstanding Classes with respect to
                  the
                  related Mortgage Loan, on the applicable Distribution Date the
                  Trustee
                  shall distribute such Unanticipated Recoveries in accordance with
                  the
                  priorities set forth in Section 4.2(a)(iii).

              

      

       

      For
        purposes of the preceding paragraph, the share of an Unanticipated Recovery
        allocable to any Class of Certificates with respect to a Mortgage Loan shall
        be
        (i) with
        respect to the Class PO Certificates, based on the PO Percentage of the
        principal portion of the Realized Loss previously allocated thereto with
        respect
        to such Mortgage Loan (or all Mortgage Loans for purposes of the next to
        last
        sentence of the preceding paragraph), and (ii) with respect to any other
        Class
        of Certificates, based on its pro
        rata
        share
        (in proportion to the Class Certificate Balances thereof with respect to
        such
        Distribution Date) of the Non-PO Percentage of the principal portion of any
        such
        Realized Loss previously allocated with respect to such Mortgage Loan (or
        Loans); provided
        however, that (i) the share of an Unanticipated Recovery allocable to a
        Principal Only Certificate with respect to any Mortgage Loan (or Loans) shall
        be
        reduced by the PO Percentage of the aggregate amount previously distributed
        to
        such Class in respect of such Mortgage Loan (or Loans) and (ii) the amount
        by
        which the distributions to the Class PO Certificates have been so reduced
        shall
        be distributed to the Classes of Certificates described in clause (ii) of
        the
        preceding paragraph in the same proportion as described in such clause (ii).
        For
        purposes of the preceding sentence, any Class PO Deferred Amount distributable
        to a Class PO Certificate on previous Distribution Dates shall be deemed
        to have
        been allocated in respect of the Mortgage Loans as to which the PO Percentage
        of
        the principal portion of Realized Losses has previously been allocated to
        such
        Class on a pro
        rata
        basis
        (based on the amount of Realized Losses so allocated).

       

      
        
          
          

        

        
          71

          
            

          

        

        
          
          

        

      

       

      SECTION
        4.3 Method of Distribution.

       

      
        	 	
                (a)

              	
                All
                  distributions with respect to each Class of Certificates on each
                  Distribution Date shall be made pro
                  rata
                  among the outstanding Certificates of such Class, based on the
                  Percentage
                  Interest in such Class represented by each Certificate. Payments
                  to the
                  Certificateholders on each Distribution Date will be made by the
                  Trustee
                  to the Certificateholders of record on the related Record Date
                  by check or
                  money order mailed to a Certificateholder at the address appearing
                  in the
                  Certificate Register, or upon written request by such Certificateholder
                  to
                  the Trustee made not later than the applicable Record Date, by
                  wire
                  transfer to a U.S. depository institution acceptable to the Trustee,
                  or by
                  such other means of payment as such Certificateholder and the Trustee
                  shall agree. 

              

      

       

      
        	 	
                (b)

              	
                Each
                  distribution with respect to a Book-Entry Certificate shall be
                  paid to the
                  Depository, which shall credit the amount of such distribution
                  to the
                  accounts of its Depository Participants in accordance with its
                  normal
                  procedures. Each Depository Participant shall be responsible for
                  disbursing such distribution to the Certificate Owners that it
                  represents
                  and to each financial intermediary for which it acts as agent.
                  Each such
                  financial intermediary shall be responsible for disbursing funds
                  to the
                  Certificate Owners that it represents. All such credits and disbursements
                  with respect to a Book-Entry Certificate are to be made by the
                  Depository
                  and the Depository Participants in accordance with the provisions
                  of the
                  applicable Certificates. Neither the Trustee nor the Master Servicer
                  shall
                  have any responsibility therefor except as otherwise provided by
                  applicable law.

              

      

       

      
        	 	
                (c)

              	
                The
                  Trustee shall withhold or cause to be withheld such amounts as
                  it
                  reasonably determines are required by the Code (giving full effect
                  to any
                  exemptions from withholding and related certifications required
                  to be
                  furnished by Certificateholders or Certificate Owners and any reductions
                  to withholding by virtue of any bilateral tax treaties and any
                  applicable
                  certification required to be furnished by Certificateholders or
                  Certificate Owners with respect thereto) from distributions to
                  be made to
                  Non-U.S. Persons. If the Trustee reasonably determines that a more
                  accurate determination of the amount required to be withheld for
                  a
                  distribution can be made within a reasonable period after the scheduled
                  date for such distribution, it may hold such distribution in trust
                  for a
                  Holder of a Residual Certificate until such determination can be
                  made. For
                  the purposes of this paragraph, a “Non-U.S. Person” is (i) an individual
                  other than a citizen or resident of the United States, (ii) a partnership,
                  corporation or entity treated as a partnership or corporation for
                  U.S.
                  federal income tax purposes not formed under the laws of the United
                  States, any state thereof or the District of Columbia (unless,
                  in the case
                  of a partnership, Treasury regulations provide otherwise), (iii)
                  any
                  estate, the income of which is not subject to U.S. federal income
                  taxation, regardless of source, and (iv) any trust, other than
                  a trust
                  that a court within the United States is able to exercise primary
                  supervision over the administration of the trust and one or more
                  U.S.
                  Persons have the authority to control all substantial decisions
                  of the
                  trust.

              

      

       

      
        
          
          

        

        
          72

          
            

          

        

        
          
          

        

      

       

      SECTION
        4.4 Allocation of Losses. 

       

      
        	 	
                (a)

              	
                On
                  or prior to each Determination Date, the Master Servicer shall
                  determine
                  the amount of any Realized Loss in respect of each Mortgage Loan
                  that
                  occurred during the immediately preceding calendar
                  month.

              

      

       

      
        	 	
                (b)

              	
                The
                  principal portion of each Realized Loss shall be allocated as
                  follows:

              

      

       

      
        	 	
                (i)

              	
                with
                  respect to any Distribution Date, the PO Percentage of the principal
                  portion of any such Realized Loss on a Discount Mortgage Loan shall
                  be
                  allocated to the Class PO Certificates until the Class Certificate
                  Balance
                  thereof has been reduced to zero;
                  and

              

      

       

      
        	 	
                (ii)

              	
                prior
                  to the Cross-over Date, the
                  Non-PO Percentage of the principal portion of any such Realized
                  Loss
                  (except Excess Losses) (or the PO Percentage thereof, in the case
                  of the
                  Class PO Certificates) shall be allocated in the following order
                  of
                  priority:

              

      

       

      first,
        to
        the
        Class B-6 Certificates until the Class Certificate Balance thereof has been
        reduced to zero;

       

      second,
        to
        the
        Class B-5 Certificates until the Class Certificate Balance thereof has been
        reduced to zero;

       

      third,
        to
        the
        Class B-4 Certificates until the Class Certificate Balance thereof has been
        reduced to zero;

       

      fourth,
        to
        the
        Class B-3 Certificates until the Class Certificate Balance thereof has been
        reduced to zero;

       

      fifth,
        to the
        Class B-2 Certificates until the Class Certificate Balance thereof has been
        reduced to zero;

       

      sixth,
        to
        the
        Class B-1 Certificates until the Class Certificate Balance thereof has been
        reduced to zero; and

       

      
        
          
          

        

        
          73

          
            

          

        

        
          
          

        

      

       

      seventh,
        to the
        Classes of Senior Certificates (other than the Class PO
        Certificates),
        pro
        rata,
        in
        accordance with their Class Certificate Balances; and

       

      
        	 	
                (iii)

              	
                From
                  and after the Cross-over Date, the Non-PO Percentage of the principal
                  portion of any Realized Loss for the Mortgage Pool will be allocated
                  among
                  the outstanding Classes of Senior Certificates entitled to principal
                  distributions (other than the Class PO Certificates), pro
                  rata,
                  based upon their Class Certificate
                  Balances.

              

      

       

      
        	 	
                (c)

              	
                With
                  respect to any Distribution Date, the Non-PO Percentage of the
                  principal
                  portion of any Excess Loss (other than Excess Bankruptcy Losses
                  attributable to Debt Service Reductions) shall be allocated pro
                  rata
                  to
                  each Class of Certificates (other than the Class PO Certificates)
                  based on
                  their respective Class Certificate
                  Balances.

              

      

       

      
        	 	
                (d)

              	
                Any
                  Realized Losses allocated to a Class of Certificates pursuant to
                  Section
                  4.4(b) shall be allocated among the Certificates of such Class in
                  proportion to their respective Class Certificate Balances. Any
                  allocation
                  of Realized Losses pursuant to this paragraph (d) shall be accomplished
                  by
                  reducing the Class Certificate Balances of
                  the related Certificates on the related Distribution Date in accordance
                  with Section 4.4(e).

              

      

       

      
        	 	
                (e)

              	
                Realized
                  Losses allocated in accordance with this Section 4.4 shall be allocated
                  on
                  the Distribution Date in the month following the month in which
                  such loss
                  was incurred and in the case of the principal portion thereof,
                  after
                  giving effect to the distributions made on such Distribution Date.
                  The
                  aggregate amount of Realized Losses to be allocated to the Class
                  PO
                  Certificates on such Distribution Date will be taken into account
                  in
                  determining distributions in respect of any Class PO Deferred Amount
                  for
                  such Distribution Date.

              

      

       

      
        	 	
                (f)

              	
                On
                  each Distribution Date, the Master Servicer shall determine the
                  Subordinated Certificate Writedown Amount, if any. Any such Subordinated
                  Certificate Writedown Amount shall effect, without duplication
                  of any
                  other provision in this Section 4.4 that provides for a reduction
                  in the
                  Class Certificate Balance of the Subordinated Certificates, a
                  corresponding reduction in the Class Certificate Balance of the
                  Subordinated Certificates, which reduction shall occur on such
                  Distribution Date after giving effect to distributions made on
                  such
                  Distribution Date.

              

      

       

      
        	 	
                (g)

              	
                Notwithstanding
                  the foregoing, no such allocation of any Realized Loss shall be
                  made on a
                  Distribution Date to a Class of Certificates to the extent that
                  such
                  allocation would result in the reduction of the aggregate Class
                  Certificate Balances of all the Senior Certificates as of such
                  Distribution Date plus the Class Certificate Balances of the Subordinated
                  Certificates as of such Distribution Date, after giving effect
                  to all
                  distributions and prior allocations of Realized Losses on such
                  date, to an
                  amount less than the Stated Principal Balance of the Mortgage Loans
                  as of
                  the first day of the month of such Distribution Date, less any
                  Deficient
                  Valuations occurring on or prior to the Bankruptcy Coverage Termination
                  Date (such limitation, the “Loss Allocation
                  Limitation”).

              

      

       

      
        
          
          

        

        
          74

          
            

          

        

        
          
          

        

         

      

      SECTION
        4.5 Reserved.

       

      SECTION
        4.6 Monthly Statements to Certificateholders.

       

      
        	 	
                (a)

              	
                Not
                  later than each Distribution Date, the Trustee shall prepare and
                  cause to
                  be forwarded by first class mail to each Certificateholder, the
                  Master
                  Servicer, the Depositor and each Rating Agency a statement, that
                  complies
                  with Item 1121 of Regulation AB, setting forth, among other things,
                  with
                  respect to the related distribution and/or may post such statement
                  on its
                  website located at
                  www.bnyinvestorreporting.com:

              

      

       

      
        	 	
                (i)

              	
                the
                  amount thereof allocable to principal, separately identifying the
                  aggregate amount of any Principal Prepayments and Liquidation Proceeds
                  included therein;

              

      

       

      
        	 	
                (ii)

              	
                the
                  amount thereof allocable to interest, the amount of any Compensating
                  Interest included in such distribution and any remaining Net Interest
                  Shortfalls after giving effect to such
                  distribution;

              

      

       

      
        	 	
                (iii)

              	
                if
                  the distribution to the Holders of such Class of Certificates is
                  less than
                  the full amount that would be distributable to such Holders if
                  there were
                  sufficient funds available therefor, the amount of the shortfall
                  and the
                  allocation thereof as between principal and
                  interest;

              

      

       

      
        	 	
                (iv)

              	
                the
                  Class Certificate Balance of each Class of Certificates after giving
                  effect to the distribution of principal on such Distribution
                  Date;

              

      

       

      
        	 	
                (v)

              	
                the
                  Pool Principal Balance for the following Distribution
                  Date;

              

      

       

      
        	 	
                (vi)

              	
                the
                  Senior Percentage and Subordinated Percentage for the following
                  Distribution Date;

              

      

       

      
        	 	
                (vii)

              	
                the
                  amount of the Master Servicing Fees paid to or retained by the
                  Master
                  Servicer with respect to such Distribution
                  Date;

              

      

       

      
        	 	
                (viii)

              	
                the
                  Pass-Through Rate for each such Class of Certificates with respect
                  to such
                  Distribution Date;

              

      

       

      
        	 	
                (ix)

              	
                the
                  amount of Advances included in the distribution on such Distribution
                  Date
                  and the aggregate amount of Advances outstanding as of the close
                  of
                  business on such Distribution Date;

              

      

       

      
        	 	
                (x)

              	
                the
                  number and aggregate principal amounts of Mortgage Loans (A) delinquent
                  (exclusive of Mortgage Loans in foreclosure) (1) 1 to 30 days (2)
                  31 to 60
                  days (3) 61 to 90 days and (4) 91 or more days and (B) in foreclosure
                  and
                  delinquent (1) 1 to 30 days (2) 31 to 60 days (3) 61 to 90 days
                  and (4) 91
                  or more days, as of the close of business on the last day of the
                  calendar
                  month preceding such Distribution
                  Date;

              

      

       

      
        
          
          

        

        
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                (xi)

              	
                with
                  respect to any Mortgage Loan that became an REO Property during
                  the
                  preceding calendar month, the loan number and Stated Principal
                  Balance of
                  such Mortgage Loan as of the close of business on the Determination
                  Date
                  preceding such Distribution Date and the date of acquisition
                  thereof;

              

      

       

      
        	 	
                (xii)

              	
                the
                  total number and principal balance of any REO Properties (and market
                  value, if available) as of the close of business on the Determination
                  Date
                  preceding such Distribution Date;

              

      

       

      
        	 	
                (xiii)

              	
                the
                  Senior Prepayment Percentage for the following Distribution
                  Date;

              

      

       

      
        	 	
                (xiv)

              	
                the
                  aggregate amount of Realized Losses incurred during the preceding
                  calendar
                  month;

              

      

       

      
        	 	
                (xv)

              	
                the
                  cumulative amount of Realized Losses applied in reduction of the
                  principal
                  balance of each Class of Certificates since the Closing
                  Date;

              

      

       

      
        	 	
                (xvi)

              	
                the
                  Special Hazard Loss Coverage Amount, the Fraud Loss Coverage Amount
                  and
                  the Bankruptcy Loss Coverage Amount, in each case as of the related
                  Determination Date; and

              

      

       

      
        	 	
                (xvii)

              	
                with
                  respect to the second Distribution Date, the number and aggregate
                  balance
                  of any Delay Delivery Mortgage Loans not delivered within thirty
                  days
                  after the Closing Date.

              

      

       

      
        	 	
                (b)

              	
                The
                  Trustee’s responsibility for disbursing the above information to the
                  Certificateholders is limited to the availability, timeliness and
                  accuracy
                  of the information provided by the Master
                  Servicer.

              

      

       

      
        	 	
                (c)

              	
                On
                  or before the fifth Business Day following the end of each Prepayment
                  Period (but in no event later than the third Business Day prior
                  to the
                  related Distribution Date), the Master Servicer shall deliver to
                  the
                  Trustee (which delivery may be by electronic data transmission)
                  a report
                  in substantially the form set forth as Schedule III
                  hereto.

              

      

       

      
        	 	
                (d)

              	
                Within
                  a reasonable period of time after the end of each calendar year,
                  the
                  Trustee shall cause to be furnished to each Person who at any time
                  during
                  the calendar year was a Certificateholder, a statement containing
                  the
                  information set forth in clauses (a)(i), (a)(ii) and (a)(vii) of
                  this
                  Section 4.6 aggregated for such calendar year or applicable portion
                  thereof during which such Person was a Certificateholder. Such
                  obligation
                  of the Trustee shall be deemed to have been satisfied to the extent
                  that
                  substantially comparable information shall be provided by the Trustee
                  pursuant to any requirements of the Code as from time to time in
                  effect.
                  

              

      

       

      
        
          
          

        

        
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      ARTICLE
        V

      THE
        CERTIFICATES

       

      SECTION
        5.1 The Certificates.

       

      The
        Certificates shall be substantially in the forms attached hereto as exhibits.
        The Certificates shall be issuable in registered form, in the minimum
        denominations, integral multiples in excess thereof (except that one Certificate
        in each Class may be issued in a different amount which must be in excess
        of the
        applicable minimum denomination) and aggregate denominations per Class set
        forth
        in the Preliminary Statement.

       

      Subject
        to Section 9.2 hereof respecting the final distribution on the Certificates,
        on
        each Distribution Date the Trustee shall make distributions to each
        Certificateholder of record on the preceding Record Date either (x) by wire
        transfer in immediately available funds to the account of such Holder at
        a bank
        or other entity having appropriate facilities therefor, if (i) such Holder
        has
        so notified the Trustee at least five Business Days prior to the related
        Record
        Date and (ii) such Holder shall hold (A) 100% of the Class Certificate Balance
        of any Class of Certificates or (B) Certificates of any Class with aggregate
        principal Denominations of not less than $1,000,000 or (y) by check mailed
        by
        first class mail to such Certificateholder at the address of such Holder
        appearing in the Certificate Register.

       

      The
        Certificates shall be executed by manual or facsimile signature on behalf
        of the
        Trustee by an authorized officer. Certificates bearing the manual or facsimile
        signatures of individuals who were, at the time when such signatures were
        affixed, authorized to sign on behalf of the Trustee shall bind the Trustee,
        notwithstanding that such individuals or any of them have ceased to be so
        authorized prior to the countersignature and delivery of such Certificates
        or
        did not hold such offices at the date of such Certificate. No Certificate
        shall
        be entitled to any benefit under this Agreement, or be valid for any purpose,
        unless countersigned by the Trustee by manual signature, and such
        countersignature upon any Certificate shall be conclusive evidence, and the
        only
        evidence, that such Certificate has been duly executed and delivered hereunder.
        All Certificates shall be dated the date of their countersignature. On the
        Closing Date, the Trustee shall countersign the Certificates to be issued
        at the
        direction of the Depositor, or any affiliate thereof.

       

      The
        Depositor shall provide, or cause to be provided, to the Trustee on a continuous
        basis, an adequate inventory of Certificates to facilitate
        transfers.

       

      SECTION
        5.2 Certificate Register; Registration of Transfer and Exchange of
        Certificates.

       

      
        	 	
                (a)

              	
                The
                  Trustee shall maintain, or cause to be maintained in accordance
                  with the
                  provisions of Section 5.6 hereof, a Certificate Register for the
                  Trust
                  Fund in which, subject to the provisions of subsections (b) and
                  (c) below
                  and to such reasonable regulations as it may prescribe, the Trustee
                  shall
                  provide for the registration of Certificates and of transfers and
                  exchanges of Certificates as herein provided. Upon surrender for
                  registration of transfer of any Certificate, the Trustee shall
                  execute and
                  deliver, in the name of the designated transferee or transferees,
                  one or
                  more new Certificates of the same Class and aggregate Percentage
                  Interest.

              

      

       

      
        
          
          

        

        
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      At
        the
        option of a Certificateholder, Certificates may be exchanged for other
        Certificates of the same Class in authorized denominations and evidencing
        the
        same aggregate Percentage Interest upon surrender of the Certificates to
        be
        exchanged at the office or agency of the Trustee. Whenever any Certificates
        are
        so surrendered for exchange, the Trustee shall execute, authenticate, and
        deliver the Certificates which the Certificateholder making the exchange
        is
        entitled to receive. Every Certificate presented or surrendered for registration
        of transfer or exchange shall be accompanied by a written instrument of transfer
        in form satisfactory to the Trustee duly executed by the Holder thereof or
        his
        attorney duly authorized in writing.

       

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

       

      All
        Certificates surrendered for registration of transfer or exchange shall be
        cancelled and subsequently destroyed by the Trustee in accordance with the
        Trustee’s customary procedures.

       

      
        	 	
                (b)

              	
                No
                  transfer of a Private Certificate shall be made unless such transfer
                  is
                  made pursuant to an effective registration statement under the
                  Securities
                  Act and any applicable state securities laws or is exempt from
                  the
                  registration requirements under said Act and such state securities
                  laws.
                  In the event that a transfer is to be made in reliance upon an
                  exemption
                  from the Securities Act and such laws, in order to assure compliance
                  with
                  the Securities Act and such laws, any Holder of a Private Certificate
                  (other than a Private Certificate that is a Book-Entry Certificate)
                  desiring to effect such transfer and such Certificateholder’s prospective
                  transferee shall each certify to the Trustee in writing the facts
                  surrounding the transfer in substantially the forms set forth in
                  Exhibit I
                  (the “Transferor Certificate”) and (i) deliver a letter in substantially
                  the form of either Exhibit J (the “Investment Letter”) or Exhibit K (the
                  “Rule 144A Letter”) or (ii) there shall be delivered to the Trustee at the
                  expense of the transferor an Opinion of Counsel that such transfer
                  may be
                  made pursuant to an exemption from the Securities Act.
                  

              

      

       

      Each
        Holder of a Private Certificate that is a Book-Entry Certificate, by its
        acquisition thereof (or a beneficial interest therein), shall be deemed to
        have
        represented and warranted for the benefit of the Depositor, the Servicer
        and the
        Trustee that (a) it understands that the Private Certificates are not being
        registered under the Securities Act, or any state securities laws and are
        being
        transferred to it in a transaction that is exempt from the registration
        requirements of the Securities Act and any such laws, (b) it has such knowledge
        and experience in financial and business matters that it is capable of
        evaluating the merits and risks of investments in the Private Certificates,
        (c)
        it has had the opportunity to ask questions of and receive answers from the
        Depositor concerning the purchase of the Private Certificates and all matters
        relating thereto or any additional information deemed necessary to its decision
        to purchase the Private Certificates, (d) neither it, nor any anyone acting
        on
        its behalf, has offered, transferred, pledged, sold or otherwise disposed
        of the
        Private Certificates or any interest therein, or solicited any offer to buy
        or
        accept a transfer, pledge or other disposition of the Private Certificates
        or
        any interest therein from, or otherwise approached or negotiated with respect
        to
        the Private Certificates or any interest therein with, any person in any
        manner,
        or made any general solicitation by means of general advertising or in any
        other
        manner, or taken any other action, that would constitute a distribution of
        the
        Private Certificates under the Securities Act or that would render the
        disposition of the Private Certificates a violation of Section 5 of the
        Securities Act or require registration pursuant thereto, nor will it act,
        nor
        has it authorized or will authorize any person to act, in such manner with
        respect to the Private Certificates, (e) it is a “qualified institutional buyer”
as that term is defined in Rule 144A under the Securities Act (“Rule 144A”), (f)
        it is aware that the sale of the Private Certificates to it is being made
        in
        reliance on Rule 144A, (g) it is acquiring the Private Certificates for its
        own
        account or for resale pursuant to Rule 144A and it understands that the Private
        Certificates may be resold, pledged or transferred only (A) to a person whom
        it
        reasonably believes to be a qualified institutional buyer that purchases
        for its
        own account or for the account of a qualified institutional buyer to whom
        notice
        is given that the resale, pledge or transfer is being made in reliance on
        Rule
        144A, or (B) pursuant to another exemption from registration under the
        Securities Act; and (h) it understands that no representation is made as
        to the
        availability of the exemption provided by Rule 144A for resales of the Private
        Certificates.

       

      
        
          
          

        

        
          78

          
            

          

        

        
          
          

        

      

       

      The
        Depositor shall provide to any Holder of a Private Certificate and any
        prospective transferee designated by any such Holder, information regarding
        the
        related Certificates and the Mortgage Loans and such other information as
        shall
        be necessary to satisfy the condition to eligibility set forth in Rule
        144A(d)(4) for transfer of any such Certificate without registration thereof
        under the Securities Act pursuant to the registration exemption provided
        by Rule
        144A. The Trustee and the Master Servicer shall cooperate with the Depositor
        in
        providing the Rule 144A information referenced in the preceding sentence,
        including providing to the Depositor such information regarding the
        Certificates, the Mortgage Loans and other matters regarding the Trust Fund
        as
        the Depositor shall reasonably request to meet its obligation under the
        preceding sentence. Each Holder of a Private Certificate desiring to effect
        such
        transfer shall, and by its acceptance of a Private Certificate does hereby
        agree
        to, indemnify the Trustee and the Depositor, the Seller and the Master Servicer
        against any liability that may result if the transfer is not so exempt or
        is not
        made in accordance with such federal and state laws.

       

      No
        transfer of an ERISA-Restricted Certificate (in the form of a Definitive
        Certificate) shall be made unless the Trustee shall have received a Transferor
        Certificate from the related transferor and either (i) a representation from
        the
        transferee of such Certificate acceptable to and in form and substance
        satisfactory to the Trustee (in the event such Certificate is a Private
        Certificate, such requirement is satisfied only by the Trustee’s receipt of a
        representation letter from the transferee substantially in the form of Exhibit
        J
        or Exhibit K), to the effect that such transferee is not an employee benefit
        plan or arrangement subject to Section 406 of ERISA or a plan or arrangement
        subject to Section 4975 of the Code, nor a person acting on behalf of any
        such
        plan or arrangement, nor using the assets of any such plan or arrangement
        to
        effect such transfer, (ii) in the case of a Private Certificate (that has
        been
        subject to an ERISA-Qualified Underwriting) or a Residual Certificate, if
        the
        purchaser is an insurance company, a representation that the purchaser is
        an
        insurance company which is purchasing such Certificates with funds contained
        in
        an “insurance company general account” (as such term is defined in Section V(e)
        of Prohibited Transaction Class Exemption 95-60 (“PTCE 95-60”)) and that the
        purchase and holding of such Certificates are covered under Sections I and
        III
        of PTCE 95-60 or (iii) in the case of any such ERISA-Restricted Certificate
        presented for registration in the name of an employee benefit plan subject
        to
        ERISA, or a plan or arrangement subject to Section 4975 of the Code (or
        comparable provisions of any subsequent enactments), or a trustee of any
        such
        plan or any other person acting on behalf of any such plan or arrangement,
        or
        using such plan’s or arrangement’s assets, an Opinion of Counsel satisfactory to
        the Trustee, which Opinion of Counsel shall not be an expense of either the
        Trustee, the Depositor, the Master Servicer or the Trust Fund, addressed
        to the
        Trustee to the effect that the purchase or holding of such ERISA-Restricted
        Certificate will not result in prohibited transactions under Title I of ERISA
        and Section 4975 of the Code and will not subject the Trustee, the Depositor
        or
        the Master Servicer to any obligation in addition to those expressly undertaken
        in this Agreement or to any liability. Notwithstanding anything else to the
        contrary herein, any purported transfer of an ERISA-Restricted Certificate
        to or
        on behalf of an employee benefit plan subject to ERISA or to the Code without
        the delivery to the Trustee of an Opinion of Counsel satisfactory to the
        Trustee
        as described above shall be void and of no effect.

       

      
        
          
          

        

        
          79

          
            

          

        

        
          
          

        

      

       

      Each
        Holder of a Private Certificate that is a Book-Entry Certificate, by its
        acquisition thereof (or a beneficial interest therein) shall be deemed to
        have
        represented and warranted for the benefit of the Depositor, the Servicer,
        the
        Trustee and the other Certificateholders, that (a) it is not an employee
        benefit
        plan or arrangement that is subject to Section 406 of ERISA, or a plan or
        arrangement that is subject to Section 4975 of the Internal Revenue Code
        of
        1986, as amended, nor is it acting on behalf of any such plan or arrangement
        or
        using the assets of any such plan or arrangement to effect such acquisition,
        or
        (b) if it is an insurance company, in the case of Private Certificates that
        have
        been the subject of an ERISA-Qualifying Underwriting, it is purchasing the
        Private Certificates with funds contained in an “insurance company general
        account” (as defined in Section V(e) of Prohibited Transaction Class Exemption
        95-60 (“PTCE 95-60”)) and its purchase and holding of the Private Certificates
        are covered under Sections I and III of PTCE 95-60.

       

      To
        the
        extent permitted under applicable law (including, but not limited to, ERISA),
        the Trustee shall be under no liability to any Person for any registration
        of
        transfer of any ERISA-Restricted Certificate that is in fact not permitted
        by
        this Section 5.2(b) or for making any payments due on such Certificate to
        the
        Holder thereof or taking any other action with respect to such Holder under
        the
        provisions of this Agreement so long as the transfer was registered by the
        Trustee in accordance with the foregoing requirements. The Trustee shall
        be
        entitled, but not obligated, to recover from any Holder of any ERISA-Restricted
        Certificate that was in fact a Plan or a Person acting on behalf of any such
        Plan any payments made on such ERISA-Restricted Certificate at and after
        either
        such time. Any such payments so recovered by the Trustee shall be paid and
        delivered by the Trustee to the last preceding Holder of such Certificate
        that
        is not such a Plan or Person acting on behalf of a Plan. 

       

      
        
          
          

        

        
          80

          
            

          

        

        
          
          

        

      

       

      No
        transfer of an ERISA-Restricted Yield Supplemented Certificate in the form
        of a
        Definitive Certificate shall be made unless the Trustee shall have received
        a
        representation letter from the transferee of such Certificate to the effect
        that
        either (i) such transferee is neither a Plan nor a Person acting on behalf
        of
        any such Plan or using the assets of any such Plan to effect such transfer
        or
        (ii) the acquisition and holding of the ERISA-Restricted Yield Supplemented
        Certificate are eligible for exemptive relief under Prohibited Transaction
        Class
        Exemption (“PTCE”) 84-14, PTCE 90-1, PTCE 91-38, PTCE 95-60 or PTCE 96-23. Any
        purported transfer of an ERISA-Restricted Yield Supplemented Certificate
        in the
        form of a Definitive Certificate on behalf of a Plan without the delivery
        to the
        Trustee of a representation letter as described above shall be void and of
        no
        effect. If the ERISA-Restricted Yield Supplemented Certificate is a Book-Entry
        Certificate, the transferee will be deemed to have made a representation
        as
        provided in clause (i) or (ii) of this paragraph, as applicable.

       

      If
        any
        ERISA-Restricted Yield Supplemented Certificate, or any interest therein,
        is
        acquired or held in violation of the provisions of the preceding paragraph,
        the
        next preceding permitted beneficial owner will be treated as the beneficial
        owner of that Certificate, retroactive to the date of transfer to the purported
        beneficial owner. Any purported beneficial owner whose acquisition or holding
        of
        an ERISA-Restricted Yield Supplemented Certificate, or interest therein,
        was
        effected in violation of the provisions of the preceding paragraph shall
        indemnify to the extent permitted by law and hold harmless the Depositor,
        Custodian, the Trustee, and the Master Servicer from and against any and
        all
        liabilities, claims, costs or expenses incurred by such parties as a result
        of
        such acquisition or holding.

       

      To
        the
        extent permitted under applicable law (including, but not limited to, ERISA),
        the Trustee shall be under no liability to any Person for any registration
        of
        transfer of any ERISA-Restricted Yield Supplemented Certificate that is in
        fact
        not permitted by this Section 5.2(b) or for making any payments due on such
        Certificate to the Holder thereof or taking any other action with respect
        to
        such Holder under the provisions of this Agreement so long as the transfer
        was
        registered by the Trustee in accordance with the foregoing
        requirements.

       

      Notwithstanding
        the foregoing, no opinion or certificate shall be required for the initial
        issuance of any ERISA-Restricted Certificate or ERISA-Restricted Yield
        Supplemented Certificate that is registered in the name of the Depository
        or its
        nominee.

       

      
        	 	
                (c)

              	
                Each
                  Person who has or who acquires any Ownership Interest in a Residual
                  Certificate shall be deemed by the acceptance or acquisition of
                  such
                  Ownership Interest to have agreed to be bound by the following
                  provisions,
                  and the rights of each Person acquiring any Ownership Interest
                  in a
                  Residual Certificate are expressly subject to the following
                  provisions:

              

      

       

      
        
          
          

        

        
          81

          
            

          

        

        
          
          

        

      

       

      
        	 	
                (i)

              	
                Each
                  Person holding or acquiring any Ownership Interest in a Residual
                  Certificate shall be a Permitted Transferee and shall promptly
                  notify the
                  Trustee of any change or impending change in its status as a Permitted
                  Transferee.

              

      

       

      
        	 	
                (ii)

              	
                No
                  Ownership Interest in a Residual Certificate may be registered
                  on the
                  Closing Date or thereafter transferred, and the Trustee shall not
                  register
                  the Transfer of any Residual Certificate unless, in addition to
                  the
                  certificates required to be delivered to the Trustee under subparagraph
                  (b) above, the Trustee shall have been furnished with an affidavit
                  (a
                  “Transfer Affidavit”) of the initial owner or the proposed transferee in
                  the form attached hereto as Exhibit H and with a certificate of
                  the
                  proposed transferor in the form attached hereto as Exhibit
                  I.

              

      

       

      
        	 	
                (iii)

              	
                Each
                  Person holding or acquiring any Ownership Interest in a Residual
                  Certificate shall agree (A) to obtain a Transfer Affidavit from
                  any other
                  Person to whom such Person attempts to Transfer its Ownership Interest
                  in
                  a Residual Certificate, (B) to obtain a Transfer Affidavit from
                  any Person
                  for whom such Person is acting as nominee, trustee or agent in
                  connection
                  with any Transfer of a Residual Certificate and (C) not to Transfer
                  its
                  Ownership Interest in a Residual Certificate or to cause the Transfer
                  of
                  an Ownership Interest in a Residual Certificate to any other Person
                  if it
                  has actual knowledge that such Person is not a Permitted
                  Transferee.

              

      

       

      
        	 	
                (iv)

              	
                Any
                  attempted or purported Transfer of any Ownership Interest in a
                  Residual
                  Certificate in violation of the provisions of this Section 5.2(c)
                  shall be
                  absolutely null and void and shall vest no rights in the purported
                  Transferee. If any purported transferee shall become a Holder of
                  a
                  Residual Certificate in violation of the provisions of this Section
                  5.2(c), then the last preceding Permitted Transferee shall be restored
                  to
                  all rights as Holder thereof retroactive to the date of registration
                  of
                  Transfer of such Residual Certificate. The Trustee shall be under
                  no
                  liability to any Person for any registration of Transfer of a Residual
                  Certificate that is in fact not permitted by Section 5.2(b) and
                  this
                  Section 5.2(c) or for making any payments due on such Certificate
                  to the
                  Holder thereof or taking any other action with respect to such
                  Holder
                  under the provisions of this Agreement so long as the Transfer
                  was
                  registered after receipt of the related Transfer Affidavit, Transferor
                  Certificate and, in the case of a Residual Certificate which is
                  also a
                  Private Certificate, either the Rule 144A Letter or the Investment
                  Letter.
                  The Trustee shall be entitled but not obligated to recover from
                  any Holder
                  of a Residual Certificate that was in fact not a Permitted Transferee
                  at
                  the time it became a Holder or, at such subsequent time as it became
                  other
                  than a Permitted Transferee, all payments made on such Residual
                  Certificate at and after either such time. Any such payments so
                  recovered
                  by the Trustee shall be paid and delivered by the Trustee to the
                  last
                  preceding Permitted Transferee of such
                  Certificate.

              

      

       

      
        
          
          

        

        
          82

          
            

          

        

        
          
          

        

      

       

      
        	 	
                (v)

              	
                The
                  Depositor shall use its best efforts to make available, upon receipt
                  of
                  written request from the Trustee, all information necessary to
                  compute any
                  tax imposed under Section 860E(e) of the Code as a result of a
                  Transfer of
                  an Ownership Interest in a Residual Certificate to any Holder who
                  is not a
                  Permitted Transferee.

              

      

       

      The
        restrictions on Transfers of a Residual Certificate set forth in this Section
        5.2(c) shall cease to apply (and the applicable portions of the legend on
        a
        Residual Certificate may be deleted) with respect to Transfers occurring
        after
        delivery to the Trustee of an Opinion of Counsel, which Opinion of Counsel
        shall
        not be an expense of the Trust Fund, the Trustee, the Seller or the Master
        Servicer, to the effect that the elimination of such restrictions will not
        cause
        the REMIC created hereunder to fail to qualify as a REMIC at any time that
        the
        Certificates are outstanding or result in the imposition of any tax on the
        Trust
        Fund, a Certificateholder or another Person. Each Person holding or acquiring
        any Ownership Interest in a Residual Certificate hereby consents to any
        amendment of this Agreement which, based on an Opinion of Counsel furnished
        to
        the Trustee, is reasonably necessary (a) to ensure that the record ownership
        of,
        or any beneficial interest in, a Residual Certificate is not transferred,
        directly or indirectly, to a Person that is not a Permitted Transferee and
        (b)
        to provide for a means to compel the Transfer of a Residual Certificate which
        is
        held by a Person that is not a Permitted Transferee to a Holder that is a
        Permitted Transferee.

       

      
        	 	
                (d)

              	
                The
                  preparation and delivery of all certificates and opinions referred
                  to
                  above in this Section 5.2 in connection with transfer shall be
                  at the
                  expense of the parties to such
                  transfers.

              

      

       

      
        	 	
                (e)

              	
                Except
                  as provided below, the Book-Entry Certificates shall at all times
                  remain
                  registered in the name of the Depository or its nominee and at
                  all times:
                  (i) registration of the Certificates may not be transferred by
                  the Trustee
                  except to another Depository; (ii) the Depository shall maintain
                  book-entry records with respect to the Certificate Owners and with
                  respect
                  to ownership and transfers of such Book-Entry Certificates; (iii)
                  ownership and transfers of registration of the Book-Entry Certificates
                  on
                  the books of the Depository shall be governed by applicable rules
                  established by the Depository; (iv) the Depository may collect
                  its usual
                  and customary fees, charges and expenses from its Depository Participants;
                  (v) the Trustee shall deal with the Depository, Depository Participants
                  and indirect participating firms as representatives of the Certificate
                  Owners of the Book-Entry Certificates for purposes of exercising
                  the
                  rights of holders under this Agreement, and requests and directions
                  for
                  and votes of such representatives shall not be deemed to be inconsistent
                  if they are made with respect to different Certificate Owners;
                  and (vi)
                  the Trustee may rely and shall be fully protected in relying upon
                  information furnished by the Depository with respect to its Depository
                  Participants and furnished by the Depository Participants with
                  respect to
                  indirect participating firms and persons shown on the books of
                  such
                  indirect participating firms as direct or indirect Certificate
                  Owners.

              

      

       

      
        
          
          

        

        
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      All
        transfers by Certificate Owners of Book-Entry Certificates shall be made
        in
        accordance with the procedures established by the Depository Participant
        or
        brokerage firm representing such Certificate Owner. Each Depository Participant
        shall only transfer Book-Entry Certificates of Certificate Owners it represents
        or of brokerage firms for which it acts as agent in accordance with the
        Depository’s normal procedures.

       

      If
        (x)
        (i) the Depository or the Depositor advises the Trustee in writing that the
        Depository is no longer willing or able to properly discharge its
        responsibilities as Depository, and (ii) the Trustee or the Depositor is
        unable
        to locate a qualified successor, (y) the Depositor at its option advises
        the
        Trustee in writing that it elects to terminate the book-entry system through
        the
        Depository or (z) after the occurrence of an Event of Default, Certificate
        Owners representing at least 51% of the Class Certificate Balance of the
        Book-Entry Certificates together advise the Trustee and the Depository through
        the Depository Participants in writing that the continuation of a book-entry
        system through the Depository is no longer in the best interests of the
        Certificate Owners, the Trustee shall notify all Certificate Owners, through
        the
        Depository, of the occurrence of any such event and of the availability of
        definitive, fully-registered Certificates (the “Definitive Certificates”) to
        Certificate Owners requesting the same. Upon surrender to the Trustee of
        the
        related Class of Certificates by the Depository, accompanied by the instructions
        from the Depository for registration, the Trustee shall issue the Definitive
        Certificates. Neither the Master Servicer, the Depositor nor the Trustee
        shall
        be liable for any delay in delivery of such instruction and each may
        conclusively rely on, and shall be protected in relying on, such instructions.
        The Master Servicer shall provide the Trustee with an adequate inventory
        of
        certificates to facilitate the issuance and transfer of Definitive Certificates.
        Upon the issuance of Definitive Certificates all references herein to
        obligations imposed upon or to be performed by the Depository shall be deemed
        to
        be imposed upon and performed by the Trustee, to the extent applicable with
        respect to such Definitive Certificates and the Trustee shall recognize the
        Holders of the Definitive Certificates as Certificateholders hereunder; provided
        that the Trustee shall not by virtue of its assumption of such obligations
        become liable to any party for any act or failure to act of the
        Depository.

       

      SECTION
        5.3 Mutilated, Destroyed, Lost or Stolen Certificates.

       

      If
        (a)
        any mutilated Certificate is surrendered to the Trustee, or the Trustee receives
        evidence to its satisfaction of the destruction, loss or theft of any
        Certificate and (b) there is delivered to the Master Servicer and the Trustee
        such security or indemnity as may be required by them to save each of them
        harmless, then, in the absence of notice to the Trustee that such Certificate
        has been acquired by a bona fide purchaser, the Trustee shall execute,
        countersign and deliver, in exchange for or in lieu of any such mutilated,
        destroyed, lost or stolen Certificate, a new Certificate of like Class, tenor
        and Percentage Interest. In connection with the issuance of any new Certificate
        under this Section 5.3, the Trustee may require the payment of a sum sufficient
        to cover any tax or other governmental charge that may be imposed in relation
        thereto and any other expenses (including the fees and expenses of the Trustee)
        connected therewith. Any replacement Certificate issued pursuant to this
        Section
        5.3 shall constitute complete and indefeasible evidence of ownership, as
        if
        originally issued, whether or not the lost, stolen or destroyed Certificate
        shall be found at any time.

       

      
        
          
          

        

        
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      SECTION
        5.4 Persons Deemed Owners.

       

      The
        Master Servicer, the Trustee and any agent of the Master Servicer or the
        Trustee
        may treat the Person in whose name any Certificate is registered as the owner
        of
        such Certificate for the purpose of receiving distributions as provided in
        this
        Agreement and for all other purposes whatsoever, and neither the Master
        Servicer, the Trustee nor any agent of the Master Servicer or the Trustee
        shall
        be affected by any notice to the contrary.

       

      SECTION
        5.5 Access to List of Certificateholders’ Names and Addresses.

       

      If
        three
        or more Certificateholders or Certificate Owners (a) request such information
        in
        writing from the Trustee, (b) state that such Certificateholders or Certificate
        Owners desire to communicate with other Certificateholders with respect to
        their
        rights under this Agreement or under the Certificates, and (c) provide a
        copy of
        the communication which such Certificateholders or Certificate Owners propose
        to
        transmit, or if the Depositor or Master Servicer shall request such information
        in writing from the Trustee, then the Trustee shall, within ten Business
        Days
        after the receipt of such request, provide the Depositor, the Master Servicer
        or
        such Certificateholders or Certificate Owners at such recipients’ expense the
        most recent list of the Certificateholders of such Trust Fund held by the
        Trustee, if any. The Depositor and every Certificateholder or Certificate
        Owner,
        by receiving and holding a Certificate, agree that the Trustee shall not
        be held
        accountable by reason of the disclosure of any such information as to the
        list
        of the Certificateholders hereunder, regardless of the source from which
        such
        information was derived.

       

      SECTION
        5.6 Maintenance of Office or Agency.

       

      The
        Trustee will maintain or cause to be maintained at its expense an office
        or
        offices or agency or agencies in New York City where Certificates may be
        surrendered for registration of transfer or exchange. The Trustee initially
        designates its Corporate Trust Office for such purposes. The Trustee will
        give
        prompt written notice to the Certificateholders of any change in such location
        of any such office or agency.

       

      ARTICLE
        VI

      THE
        DEPOSITOR AND THE MASTER SERVICER

       

      SECTION
        6.1 Respective Liabilities of the Depositor and the Master
        Servicer.

       

      The
        Depositor and the Master Servicer shall each be liable in accordance herewith
        only to the extent of the obligations specifically and respectively imposed
        upon
        and undertaken by them herein.

       

      
        
          
          

        

        
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      SECTION
        6.2 Merger or Consolidation of the Depositor or the Master
        Servicer.

       

      The
        Depositor and the Master Servicer will each keep in full effect its existence,
        rights and franchises as a corporation under the laws of the United States
        or
        under the laws of one of the states thereof and will each 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, or any of the Mortgage Loans and to perform
        its respective duties under this Agreement.

       

      Any
        Person into which the Depositor or the Master Servicer may be merged or
        consolidated, or any Person resulting from any merger or consolidation to
        which
        the Depositor or the Master Servicer shall be a party, or any person succeeding
        to the business of the Depositor or the Master Servicer, shall be the successor
        of the Depositor or the Master Servicer, as the case may be, hereunder, without
        the execution or filing of any paper or any further act on the part of any
        of
        the parties hereto, anything herein to the contrary notwithstanding; provided,
        however, that the successor or surviving Person to the Master Servicer shall
        be
        qualified to sell mortgage loans to, and to service mortgage loans on behalf
        of,
        FNMA or FHLMC.

       

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

       

      None
        of
        the Depositor, the Master Servicer or any of the directors, officers, employees
        or agents of the Depositor or the Master Servicer shall be under any liability
        to the Certificateholders for any action taken or for refraining from the
        taking
        of any action in good faith pursuant to this Agreement, or for errors in
        judgment; provided, however, that this provision shall not protect the
        Depositor, the Master Servicer or any such Person against any breach of
        representations or warranties made by it herein or protect the Depositor,
        the
        Master Servicer or any such Person from any liability which would otherwise
        be
        imposed by reasons of willful misfeasance, bad faith or gross negligence
        in the
        performance of duties or by reason of reckless disregard of obligations and
        duties hereunder. The Depositor, the Master Servicer and any director, officer,
        employee or agent of the Depositor or 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. The Depositor, the Master
        Servicer and any director, officer, employee or agent of the Depositor or
        the
        Master Servicer shall be indemnified by the Trust Fund and held harmless
        against
        any loss, liability or expense incurred in connection with any audit,
        controversy or judicial proceeding relating to a governmental taxing authority
        or any legal action relating to this Agreement or the Certificates, other
        than
        any loss, liability or expense related to any specific Mortgage Loan or Mortgage
        Loans (except as any such loss, liability or expense shall be otherwise
        reimbursable pursuant to this Agreement) and any loss, liability or expense
        incurred by reason of willful misfeasance, bad faith or gross negligence
        in the
        performance of duties hereunder or by reason of reckless disregard of
        obligations and duties hereunder. Neither the Depositor nor the Master Servicer
        shall be under any obligation to appear in, prosecute or defend any legal
        action
        that is not incidental to its respective duties hereunder and which in its
        opinion may involve it in any expense or liability; provided, however, that
        either the Depositor or the Master Servicer may in its discretion undertake
        any
        such action that it may deem necessary or desirable in respect of this Agreement
        and the rights and duties of the parties hereto and interests of the Trustee
        and
        the Certificateholders hereunder. In such event, the legal expenses and costs
        of
        such action and any liability resulting therefrom shall be expenses, costs
        and
        liabilities of the Trust Fund, and the Depositor and the Master Servicer
        shall
        be entitled to be reimbursed therefor out of the Certificate
        Account.

       

      
        
          
          

        

        
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      SECTION
        6.4 Limitation on Resignation of Master Servicer.

       

      The
        Master Servicer shall not resign from the obligations and duties hereby imposed
        on it except (a) upon appointment of a successor servicer and receipt by
        the
        Trustee of a letter from each Rating Agency that such a resignation and
        appointment will not result in a downgrading of the rating of any of the
        Certificates, or (b) upon determination that its duties hereunder are no
        longer
        permissible under applicable law. Any such determination under clause (b)
        permitting the resignation of the Master Servicer shall be evidenced by an
        Opinion of Counsel to such effect delivered to the Trustee. No such resignation
        shall become effective until the Trustee or a successor master servicer shall
        have assumed the Master Servicer’s responsibilities, duties, liabilities and
        obligations hereunder.

       

      ARTICLE
        VII

      DEFAULT

       

      SECTION
        7.1 Events of Default.

       

      “Event
        of
        Default,” wherever used herein, means any one of the following
        events:

       

      
        	 	
                (i)

              	
                any
                  failure by the Master Servicer to deposit in the Certificate Account
                  or
                  remit to the Trustee any payment required to be made under the
                  terms of
                  this Agreement, which failure shall continue unremedied for five
                  days
                  after the date upon which written notice of such failure shall
                  have been
                  given to the Master Servicer by the Trustee or the Depositor or
                  to the
                  Master Servicer and the Trustee by the Holders of Certificates
                  having not
                  less than 25% of the Voting Rights evidenced by the Certificates;
                  or

              

      

       

      
        	 	
                (ii)

              	
                any
                  failure by the Master Servicer to observe or perform in any material
                  respect any other of the covenants or agreements on the part of
                  the Master
                  Servicer contained in this Agreement (except with respect to failure
                  related to a Limited Exchange Act Reporting Obligation), which
                  failure
                  materially affects the rights of Certificateholders, which failure
                  continues unremedied for a period of 60 days after the date on
                  which
                  written notice of such failure shall have been given to the Master
                  Servicer by the Trustee or the Depositor, or to the Master Servicer
                  and
                  the Trustee by the Holders of Certificates evidencing not less
                  than 25% of
                  the Voting Rights evidenced by the Certificates; provided, however,
                  that
                  the 60-day cure period shall not apply to the initial delivery
                  of the
                  Mortgage File for Delay Delivery Mortgage Loans nor the failure
                  to
                  substitute or repurchase in lieu thereof;
                  or

              

      

       

      
        	 	
                (iii)

              	
                a
                  decree or order of a court or agency or supervisory authority having
                  jurisdiction in the premises for the appointment of a receiver
                  or
                  liquidator in any insolvency, readjustment of debt, marshalling
                  of assets
                  and liabilities or similar proceedings, or for the winding-up or
                  liquidation of its affairs, shall have been entered against the
                  Master
                  Servicer and such decree or order shall have remained in force
                  undischarged or unstayed for a period of 60 consecutive days;
                  or

              

      

       

      
        
          
          

        

        
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                (iv)

              	
                the
                  Master Servicer shall consent to the appointment of a receiver
                  or
                  liquidator in any insolvency, readjustment of debt, marshalling
                  of assets
                  and liabilities or similar proceedings of or relating to the Master
                  Servicer or all or substantially all of the property of the Master
                  Servicer; or

              

      

       

      
        	 	
                (v)

              	
                the
                  Master Servicer shall admit in writing its inability to pay its
                  debts
                  generally as they become due, file a petition to take advantage
                  of, or
                  commence a voluntary case under, any applicable insolvency or
                  reorganization statute, make an assignment for the benefit of its
                  creditors, or voluntarily suspend payment of its obligations;
                  or

              

      

       

      
        	 	
                (vi)

              	
                the
                  failure of the Master Servicer to remit any Advance required to
                  be
                  remitted by the Master Servicer pursuant to Section 4.1 which failure
                  continues unremedied at 11:00 a.m., Central time, on the related
                  Distribution Date.

              

      

       

      If
        an
        Event of Default described in clauses (i) to (v) of this Section shall occur,
        then, and in each and every such case, so long as such Event of Default shall
        not have been remedied, the Trustee may, or at the direction of the Holders
        of
        Certificates evidencing not less than 66 2/3% of the Voting Rights evidenced
        by
        the Certificates, the Trustee shall by notice in writing to the Master Servicer
        (with a copy to each Rating Agency), terminate all of the rights and obligations
        of the Master Servicer under this Agreement and in and to the Mortgage Loans
        and
        the proceeds thereof, other than its rights as a Certificateholder hereunder.
        If
        an Event of Default described in clause (vi) of this Section shall occur,
        the
        Trustee shall immediately, by notice in writing to the Master Servicer (with
        a
        copy to each Rating Agency), terminate all of the rights and obligations
        of the
        Master Servicer under this Agreement and in and to the Mortgage Loans and
        proceeds thereof, other than its rights as a Certificateholder hereunder.
        In
        addition, if during the period that the Depositor is required to file Exchange
        Act Reports with respect to the Trust Fund, the Master Servicer shall fail
        to
        observe or perform any of the obligations set forth in Section 3.16(a) or
        Section 10.1(a)(i) and (ii), and such failure continues for the lesser of
        ten
        (10) calendar days or such period in which the applicable Exchange Act Report
        can be filed timely (without taking into account any extensions), so long
        as
        such failure shall not have been remedied, the Trustee shall, but only at
        the
        direction of the Depositor, terminate all of the rights and obligations of
        the
        Master Servicer under this Agreement and in and to the Mortgage Loans and
        the
        proceeds thereof, other than its rights as a Certificateholder hereunder.
        The
        Depositor shall not be entitled to terminate the rights and obligations of
        the
        Master Servicer if a failure of the Master Servicer to identify a Subcontractor
        “participating in the servicing function” within the meaning of Item 1122 of
        Regulation AB was attributable solely to the role or functions of such
        Subcontractor with respect to mortgage loans other than the Mortgage Loans.
        On
        and after the receipt by the Master Servicer of such written notice, all
        authority and power of the Master Servicer hereunder, whether with respect
        to
        the Mortgage Loans or otherwise, shall pass to and be vested in the
        Trustee or
        another successor to the Master Servicer appointed by the Trustee pursuant
        to
        Section 7.2. The Trustee, in its capacity as successor to the Master Servicer,
        shall thereupon make any Advance which the Master Servicer failed to make
        subject to Section 4.1 hereof. 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. Unless
        expressly provided in such written notice, no such termination shall affect
        any
        obligation of the Master Servicer to pay amounts owed pursuant to Article
        VIII.
        The Master Servicer agrees to cooperate with the Trustee in effecting the
        termination of the Master Servicer’s responsibilities and rights hereunder,
        including, without limitation, the transfer to the Trustee of all cash amounts
        which shall at the time be credited to the Certificate Account, or thereafter
        be
        received with respect to the Mortgage Loans. All expenses incurred in the
        transferring of the servicing duties from the Master Servicer to a Successor
        Servicer shall be paid by the Master Servicer, and if not paid by the Master
        Servicer, shall be paid from amounts on deposit in the Certificate
        Account.

       

      
        
          
          

        

        
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      Notwithstanding
        any termination of the activities of the Master Servicer hereunder, the Master
        Servicer shall be entitled to receive, out of any late collection of a Scheduled
        Payment on a Mortgage Loan which was due prior to the notice terminating
        such
        Master Servicer’s rights and obligations as Master Servicer hereunder and
        received after such notice, that portion thereof to which such Master Servicer
        would have been entitled pursuant to Sections 3.8(a)(i) through (viii),and
        any
        other amounts payable to such Master Servicer hereunder the entitlement to
        which
        arose prior to the termination of its activities hereunder. Any termination
        of
        the activities of the Master Servicer hereunder will simultaneously result
        in
        the termination of the Master Servicer’s duties as a subservicer pursuant to the
        Servicing Rights Transfer and Subservicing Agreement.

       

      If
        the
        Master Servicer is terminated, the Trustee shall provide the Depositor in
        writing and in form and substance reasonably satisfactory to the Depositor,
        all
        information reasonably requested by the Depositor in order to comply with
        its
        reporting obligation under Item 6.02 of Form 8-K with respect to a successor
        master servicer in the event the Trustee should succeed to the duties of
        the
        Master Servicer as set forth herein.

       

      In
        the
        event the Master Servicer is terminated pursuant to this Section 7.1, the
        Retained Yield shall remain payable to (a) First Horizon, in its individual
        capacity as Seller, or (b) a
        subsequent owner of such Retained Yield through Seller’s sale, assignment, or
        certification of its rights to such Retained Yield,
        and
        shall not be payable to the Trustee or any successor to the Master Servicer.
        Seller’s exclusive right to receive payments of Retained Yield or sell, assign,
        certificate or otherwise dispose of such right to receive such Retained Yield
        is
        enforceable against the Master Servicer or its successor thereto.

       

      SECTION
        7.2 Trustee to Act; Appointment of Successor.

       

      On
        and
        after the time the Master Servicer receives a notice of termination pursuant
        to
        Section 7.1 hereof, the Trustee shall, subject to and to the extent provided
        in
        Section 3.4, be the successor to the Master Servicer under this Agreement
        and
        the transactions set forth or provided for herein and shall be subject to
        all
        the responsibilities, duties and liabilities relating thereto placed on the
        Master Servicer by the terms and provisions hereof and applicable law including
        the obligation to make Advances pursuant to Section 4.1. As compensation
        therefor, the Trustee shall be entitled to all funds relating to the Mortgage
        Loans that the Master Servicer would have been entitled to charge to the
        Certificate Account or Distribution Account if the Master Servicer had continued
        to act hereunder. Notwithstanding the foregoing, if the Trustee has become
        the
        successor to the Master Servicer in accordance with Section 7.1 hereof, the
        Trustee may, if it shall be unwilling to so act, or shall, if it is prohibited
        by applicable law from making Advances pursuant to Section 4.1 hereof or
        if it
        is otherwise unable to so act appoint, or petition a court of competent
        jurisdiction to appoint, any established mortgage loan servicing institution
        the
        appointment of which does not adversely affect the then current rating of
        the
        Certificates by each Rating Agency 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. Any successor to the Master
        Servicer shall be an institution which is a FNMA and FHLMC approved
        seller/servicer in good standing, which has a net worth of at least $10,000,000,
        and which is willing to service the Mortgage Loans and executes and delivers
        to
        the Depositor and the Trustee an agreement accepting such delegation and
        assignment, which contains an assumption by such Person of the rights, powers,
        duties, responsibilities, obligations and liabilities of the Master Servicer
        (other than liabilities of the Master Servicer under Section 6.3 hereof incurred
        prior to termination of the Master Servicer under Section 7.1), with like
        effect
        as if originally named as a party to this Agreement; and provided further
        that
        each Rating Agency acknowledges that its rating of the Certificates in effect
        immediately prior to such assignment and delegation will not be qualified
        or
        reduced, as a result of such assignment and delegation. The Trustee shall
        provide written notice to the Depositor of such successor pursuant to this
        Section. The successor to the Master Servicer shall provide to the Depositor
        in
        writing, fifteen (15) days prior to the effective date of such appointment,
        and
        in form and substance reasonably satisfactory to the Depositor, all information
        reasonably requested by the Depositor in order to comply with its reporting
        obligation under Item 6.02 of Form 8-K with respect to a replacement master
        servicer. The Trustee shall not resign as servicer until a successor servicer
        has been appointed and has accepted such appointment. Pending appointment
        of a
        successor to the Master Servicer hereunder, the Trustee, unless the Trustee
        is
        prohibited by law from so acting, shall, subject to Section 3.4 hereof, act
        in
        such capacity as provided above. In connection with such appointment and
        assumption, the Trustee may make such arrangements for the compensation of
        such
        successor out of payments on Mortgage Loans as it and such successor shall
        agree; provided, however, that no such compensation shall be in excess of
        the
        Master Servicing Fee permitted the Master Servicer hereunder. The Trustee
        and
        such successor shall take such action, consistent with this Agreement, as
        shall
        be necessary to effectuate any such succession. Neither the Trustee nor any
        other successor master servicer shall be deemed to be in default hereunder
        by
        reason of any failure to make, or any delay in making, any distribution
        hereunder or any portion thereof or any failure to perform, or any delay
        in
        performing, any duties or responsibilities hereunder, in either case caused
        by
        the failure of the Master Servicer to deliver or provide, or any delay in
        delivering or providing, any cash, information, documents or records to
        it.

       

      
        
          
          

        

        
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      Any
        successor to the Master Servicer as master servicer shall give notice to
        the
        Mortgagors of such change of servicer and shall, during the term of its service
        as master servicer maintain in force the policy or policies that the Master
        Servicer is required to maintain pursuant to Section 3.17.

       

      
        
          
          

        

        
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      In
        connection with the termination or resignation of the Master Servicer hereunder,
        either (i) the successor Master Servicer, including the Trustee if the Trustee
        is acting as successor Master Servicer, shall represent and warrant that
        it is a
        member of MERS in good standing and shall agree to comply in all material
        respects with the rules and procedures of MERS in connection with the servicing
        of the Mortgage Loans that are registered with MERS, or (ii) the predecessor
        Master Servicer shall cooperate with the successor Master Servicer either
        (x) in
        causing MERS to execute and deliver an assignment of Mortgage in recordable
        form
        to transfer the Mortgage from MERS to the Trustee and to execute and deliver
        such other notices, documents and other instruments as may be necessary or
        desirable to effect a transfer of such Mortgage Loan or servicing of such
        mortgage Loan on the MERS® System to the successor Master Servicer or (y) in
        causing MERS to designate on the MERS® System the successor Master Servicer as
        the servicer of such Mortgage Loan. The predecessor Master Servicer shall
        file
        or cause to be filed any such assignment in the appropriate recording office.
        The successor Master Servicer shall cause such assignment to be delivered
        to the
        Trustee promptly upon receipt of the original with evidence of recording
        thereon
        or a copy certified by the public recording office in which such assignment
        was
        recorded.

       

      SECTION
        7.3 Notification to Certificateholders.

       

      
        	 	
                (a)

              	
                Upon
                  any termination of or appointment of a successor to the Master
                  Servicer,
                  the Trustee shall give prompt written notice thereof to Certificateholders
                  and to each Rating Agency.

              

      

       

      
        	 	
                (b)

              	
                Within
                  60 days after the occurrence of any Event of Default, the Trustee
                  shall
                  transmit by mail to all Certificateholders notice of each such
                  Event of
                  Default hereunder known to the Trustee, unless such Event of Default
                  shall
                  have been cured or waived.

              

      

       

      ARTICLE
        VIII

      CONCERNING
        THE TRUSTEE

       

      SECTION
        8.1 Duties of Trustee.

       

      The
        Trustee, prior to the occurrence of an Event of Default of which a Responsible
        Officer of the Trustee has actual knowledge and after the curing of all Events
        of Default that may have occurred, shall undertake to perform such duties
        and
        only such duties as are specifically set forth in this Agreement. In case
        an
        Event of Default of which a Responsible Officer of the Trustee has actual
        knowledge has occurred and remains uncured, the Trustee shall exercise such
        of
        the rights and powers vested in it by this Agreement, and use the same degree
        of
        care and skill in their exercise as a prudent person would exercise or use
        under
        the circumstances in the conduct of such person’s own affairs.

       

      The
        Trustee, upon receipt of all resolutions, certificates, statements, opinions,
        reports, documents, orders or other instruments furnished to the Trustee
        that
        are specifically required to be furnished pursuant to any provision of this
        Agreement shall examine them to determine whether they are in the form required
        by this Agreement; provided, however, that the Trustee shall not be responsible
        for the accuracy or content of any such resolution, certificate, statement,
        opinion, report, document, order or other instrument. If any such instrument
        is
        found not to conform in any material respect to the requirements of this
        Agreement, the Trustee shall notify the Certificateholders of such instrument
        in
        the event that the Trustee, after so requesting, does not receive a
        satisfactorily corrected instrument.

       

      
        
          
          

        

        
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      The
        Trustee is hereby directed to execute and deliver to The Depository Trust
        Company the Issuer Letter of Representations dated as of the Closing Date
        on
        behalf of the trust created hereunder. The Depositor and the Master Servicer
        acknowledge and agree that the Trustee is executing and delivering the Issuer
        Letter of Representations on behalf of the trust created hereunder and shall
        do
        so solely in its capacity as Trustee and not in its individual
        capacity.

       

      No
        provision of this Agreement shall be construed to relieve the Trustee from
        liability for its own negligent action, its own negligent failure to act
        or its
        own willful misconduct; provided, however, that:

       

      
        	 	
                (i)

              	
                unless
                  an Event of Default of which a Responsible Officer of the Trustee
                  has
                  actual knowledge shall have occurred and be continuing, the duties
                  and
                  obligations of the Trustee shall be determined solely by the express
                  provisions of this Agreement, the Trustee shall not be liable except
                  for
                  the performance of such duties and obligations as are specifically
                  set
                  forth in this Agreement, no implied covenants or obligations shall
                  be read
                  into this Agreement against the Trustee and the Trustee may conclusively
                  rely, as to the truth of the statements and the correctness of
                  the
                  opinions expressed therein, upon any certificates or opinions furnished
                  to
                  the Trustee and conforming to the requirements of this Agreement
                  which it
                  believed in good faith to be genuine and to have been duly executed
                  by the
                  proper authorities respecting any matters arising
                  hereunder;

              

      

       

      
        	 	
                (ii)

              	
                the
                  Trustee shall not be liable for an error of judgment made in good
                  faith by
                  a Responsible Officer or Responsible Officers of the Trustee, unless
                  it
                  shall be finally proven that the Trustee was negligent in ascertaining
                  the
                  pertinent facts;

              

      

       

      
        	 	
                (iii)

              	
                the
                  Trustee shall not be liable with respect to any action taken, suffered
                  or
                  omitted to be taken by it in good faith in accordance with the
                  direction
                  of Holders of Certificates evidencing not less than 25% of the
                  Voting
                  Rights of Certificates relating to the time, method and place of
                  conducting any proceeding for any remedy available to the Trustee,
                  or
                  exercising any trust or power conferred upon the Trustee under
                  this
                  Agreement;

              

      

       

      
        	 	
                (iv)

              	
                the
                  Trustee shall not be required to expend or risk its own funds or
                  otherwise
                  incur financial liability in the performance of any of its duties
                  hereunder or 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 assured
                  to it,
                  and none of the provisions contained in this Agreement shall in
                  any event
                  require the Trustee to perform, or be responsible for the manner
                  of
                  performance of, any of the obligations of the Master Servicer under
                  this
                  Agreement except during such time, if any, as the Trustee shall
                  be the
                  successor to, and be vested with the rights, duties, powers and
                  privileges
                  of, the Master Servicer; and

              

      

       

      
        
          
          

        

        
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                (v)

              	
                without
                  limiting the generality of this Section 8.1, the Trustee shall
                  have no
                  duty (A) to see to any recording, filing, or depositing of this
                  Agreement
                  or any agreement referred to herein or any financing statement
                  or
                  continuation statement evidencing a security interest, or to see
                  to the
                  maintenance of any such recording or filing or deposit or to any
                  rerecording, refiling or redepositing of any thereof, (B) to see
                  to any
                  insurance, (C) to see to the payment or discharge of any tax, assessment,
                  or other governmental charge or any lien or encumbrance of any
                  kind owing
                  with respect to, assessed or levied against, any part of the Trust
                  Fund
                  other than from funds available in the Distribution Account (D)
                  to confirm
                  or verify the contents of any reports or certificates of the Servicer
                  delivered to the Trustee pursuant to this Agreement believed by
                  the
                  Trustee to be genuine and to have been signed or presented by the
                  proper
                  party or parties.

              

      

       

      SECTION
        8.2 Certain Matters Affecting the Trustee.

       

      Except
        as
        otherwise provided in Section 8.1:

       

      
        	 	
                (i)

              	
                the
                  Trustee may request and rely upon and shall be protected in acting
                  or
                  refraining from acting upon any resolution, Officers’ Certificate,
                  certificate of auditors or any other certificate, statement, instrument,
                  opinion, report, notice, request, consent, order, appraisal, bond
                  or other
                  paper or document believed by it to be genuine and to have been
                  signed or
                  presented by the proper party or parties and the Trustee shall
                  have no
                  responsibility to ascertain or confirm the genuineness of any signature
                  of
                  any such party or parties;

              

      

       

      
        	 	
                (ii)

              	
                the
                  Trustee may consult with counsel, financial advisers or accountants
                  and
                  the advice of any such counsel, financial advisers or accountants
                  and any
                  Opinion of Counsel shall be full and complete authorization and
                  protection
                  in respect of any action taken or suffered or omitted by it hereunder
                  in
                  good faith and in accordance with such Opinion of
                  Counsel;

              

      

       

      
        	 	
                (iii)

              	
                the
                  Trustee shall not be liable for any action taken, suffered or omitted
                  by
                  it in good faith and believed by it to be authorized or within
                  the
                  discretion or rights or powers conferred upon it by this
                  Agreement;

              

      

       

      
        	 	
                (iv)

              	
                the
                  Trustee shall not be bound to make any investigation into the facts
                  or
                  matters stated in any resolution, certificate, statement, instrument,
                  opinion, report, notice, request, consent, order, approval, bond
                  or other
                  paper or document, unless requested in writing so to do by Holders
                  of
                  Certificates evidencing not less than 25% of the Voting Rights
                  allocated
                  to each Class of Certificates; provided, however, that if the payment
                  within a reasonable time to the Trustee of the costs, expenses
                  or
                  liabilities likely to be incurred by it in the making of such
                  investigation is, in the opinion of the Trustee, not assured to
                  the
                  Trustee by the security afforded to it by the terms of this Agreement,
                  the
                  Trustee may require indemnity satisfactory to the Trustee against
                  such
                  cost, expense or liability as a condition to taking any such action.
                  The
                  reasonable expense of every such examination shall be paid by the
                  Master
                  Servicer or, if paid by the Trustee, shall be repaid by the Master
                  Servicer upon demand from the Servicer’s own
                  funds.

              

      

       

      
        
          
          

        

        
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                (v)

              	
                the
                  Trustee may execute any of the trusts or powers hereunder or perform
                  any
                  duties hereunder either directly or by or through agents, accountants
                  or
                  attorneys and the Trustee shall not be responsible for any misconduct
                  or
                  negligence on the part of such agent, accountant or attorney appointed
                  by
                  the Trustee with due care;

              

      

       

      
        	 	
                (vi)

              	
                the
                  Trustee shall not be required to risk or expend its own funds or
                  otherwise
                  incur any financial liability in the performance of any of its
                  duties or
                  in the exercise of any of its rights or powers hereunder if it
                  shall have
                  reasonable grounds for believing that repayment of such funds or
                  adequate
                  indemnity against such risk or liability is not assured to
                  it;

              

      

       

      
        	 	
                (vii)

              	
                the
                  Trustee shall not be liable for any loss on any investment of funds
                  pursuant to this Agreement (other than as issuer of the investment
                  security);

              

      

       

      
        	 	
                (viii)

              	
                the
                  Trustee shall not be deemed to have knowledge of an Event of Default
                  until
                  a Responsible Officer of the Trustee shall have received written
                  notice
                  thereof and in the absence of such notice, the Trustee may conclusively
                  assume that there is no Event of
                  Default;

              

      

       

      
        	 	
                (ix)

              	
                the
                  Trustee shall be under no obligation to exercise any of the trusts,
                  rights
                  or powers vested in it by this Agreement or to institute, conduct
                  or
                  defend any litigation hereunder or in relation hereto at the request,
                  order or direction of any of the Certificateholders, pursuant to
                  the
                  provisions of this Agreement, unless such Certificateholders shall
                  have
                  offered to the Trustee reasonable security or indemnity satisfactory
                  to
                  the Trustee against the costs, expenses and liabilities which may
                  be
                  incurred therein or thereby;

              

      

       

      
        	 	
                (x)

              	
                the
                  right of the Trustee to perform any discretionary act enumerated
                  in this
                  Agreement shall not be construed as a duty, and the Trustee shall
                  not be
                  answerable for other than its negligence or willful misconduct
                  in the
                  performance of such act; and 

              

      

       

      
        
          
          

        

        
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                (xi)

              	
                the
                  Trustee shall not be required to give any bond or surety in respect
                  of the
                  execution of the Trust Fund created hereby or the powers granted
                  hereunder.

              

      

       

      SECTION
        8.3 Trustee Not Liable for Certificates or Mortgage Loans.

       

      The
        recitals contained herein and in the Certificates shall be taken as the
        statements of the Depositor and the Trustee assumes no responsibility for
        their
        correctness. The Trustee makes no representations as to the validity or
        sufficiency of this Agreement or of the Certificates or of any Mortgage Loan
        or
        related document or of MERS or the MERS® System other than with respect to the
        Trustee’s execution and counter-signature of the Certificates. The Trustee shall
        not be accountable for the use or application by the Depositor or the Master
        Servicer of any funds paid to the Depositor or the Master Servicer in respect
        of
        the Mortgage Loans or deposited in or withdrawn from the Certificate Account
        by
        the Depositor or the Master Servicer.

       

      SECTION
        8.4 Trustee May Own Certificates.

       

      The
        Trustee in its individual or any other capacity may become the owner or pledgee
        of Certificates with the same rights as it would have if it were not the
        Trustee.

       

      SECTION
        8.5 Trustee’s Fees and Expenses.

       

      The
        Trustee, as compensation for its activities prior to making the distributions
        pursuant to Section 4.2 hereunder, shall be entitled to withdraw from the
        Distribution Account on each Distribution Date an amount equal to the Trustee
        Fee for such Distribution Date. The Trustee and any director, officer, employee
        or agent of the Trustee shall be indemnified by the Master Servicer and held
        harmless against any loss, liability or expense (including reasonable attorney’s
        fees) (i) incurred in connection with any claim or legal action relating
        to (a)
        this Agreement, (b) the Certificates or (c) in connection with the performance
        of any of the Trustee’s duties hereunder, other than any loss, liability or
        expense incurred by reason of willful misfeasance, bad faith or negligence
        in
        the performance of any of the Trustee’s duties hereunder or incurred by reason
        of any action of the Trustee taken at the direction of the Certificateholders
        and (ii) resulting from any error in any tax or information return prepared
        by
        the Master Servicer. Such indemnity shall survive the termination of this
        Agreement or the resignation or removal of the Trustee hereunder. Without
        limiting the foregoing, the Master Servicer covenants and agrees, except
        as
        otherwise agreed upon in writing by the Depositor and the Trustee, and except
        for any such expense, disbursement or advance as may arise from the Trustee’s
        negligence, bad faith or willful misconduct, to pay or reimburse the Trustee,
        for all reasonable expenses, disbursements and advances incurred or made
        by the
        Trustee in accordance with any of the provisions of this Agreement with respect
        to: (A) the reasonable compensation and the expenses and disbursements of
        its
        counsel not associated with the closing of the issuance of the Certificates,
        (B)
        the reasonable compensation, expenses and disbursements of any accountant,
        engineer or appraiser that is not regularly employed by the Trustee, to the
        extent that the Trustee must engage such persons to perform acts or services
        hereunder and (C) printing and engraving expenses in connection with preparing
        any Definitive Certificates. Except as otherwise provided herein, the Trustee
        shall not be entitled to payment or reimbursement for any routine ongoing
        expenses incurred by the Trustee in the ordinary course of its duties as
        Trustee, Registrar, Tax Matters Person or Paying Agent hereunder or for any
        other expenses.

       

      
        
          
          

        

        
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      SECTION
        8.6 Eligibility Requirements for Trustee.

       

      The
        Trustee hereunder shall at all times be a corporation or association organized
        and doing business under the laws of a state or the United States of America,
        authorized under such laws to exercise corporate trust powers, having a combined
        capital and surplus of at least $50,000,000, subject to supervision or
        examination by federal or state authority and with a credit rating which
        would
        not cause either of the Rating Agencies to reduce their respective then current
        ratings of the Certificates (or having provided such security from time to
        time
        as is sufficient to avoid such reduction). If such corporation or association
        publishes reports of condition at least annually, pursuant to law or to the
        requirements of the aforesaid supervising or examining authority, then for
        the
        purposes of this Section 8.6 the combined capital and surplus of such
        corporation or association shall be deemed to be its combined capital and
        surplus as set forth in its most recent report of condition so published.
        In
        case at any time the Trustee shall cease to be eligible in accordance with
        the
        provisions of this Section 8.6, the Trustee shall resign immediately in the
        manner and with the effect specified in Section 8.7 hereof. The entity serving
        as Trustee may have normal banking and trust relationships with the Depositor
        and its affiliates or the Master Servicer and its affiliates; provided, however,
        that such entity cannot be an affiliate of the Master Servicer other than
        the
        Trustee in its role as successor to the Master Servicer.

       

      SECTION
        8.7 Resignation and Removal of Trustee.

       

      The
        Trustee may at any time resign and be discharged from the trusts hereby created
        by giving written notice of resignation to the Depositor and the Master Servicer
        and each Rating Agency not less than 60 days before the date specified in
        such
        notice when, subject to Section 8.8, such resignation is to take effect,
        and
        acceptance by a successor trustee in accordance with Section 8.8 meeting
        the
        qualifications set forth in Section 8.6. If no successor trustee meeting
        such
        qualifications shall have been so appointed and have accepted appointment
        within
        30 days after the giving of such notice or resignation, the resigning Trustee
        may petition any court of competent jurisdiction for the appointment of a
        successor trustee.

       

      As
        a
        condition to the effectiveness of any such resignation, at least 15 calendar
        days prior to the effective date of such resignation, the Trustee shall provide
        (x) written notice to the Depositor of any successor pursuant to this Section
        and (y) in writing and in form and substance reasonably satisfactory to the
        Depositor, all information reasonably requested by the Depositor in order
        to
        comply with its reporting obligation under Item 6.02 of Form 8-K with respect
        to
        the resignation of the Trustee.

       

      If
        at any
        time (i) the Trustee shall cease to be eligible in accordance with the
        provisions of Section 8.6 hereof and shall fail to resign after written request
        thereto by the Depositor, (ii) the Trustee shall become incapable of acting,
        or
        shall be adjudged as bankrupt or insolvent, or a receiver of the Trustee
        or of
        its property shall be appointed, or any public officer shall take charge
        or
        control of the Trustee or of its property or affairs for the purpose of
        rehabilitation, conservation or liquidation, (iii)(A) a tax is imposed with
        respect to the Trust Fund by any state in which the Trustee or the Trust
        Fund is
        located, (B) the imposition of such tax would be avoided by the appointment
        of a
        different trustee and (C) the Trustee fails to indemnify the Trust Fund against
        such tax, or (iv) during the period that the Depositor is required to file
        Exchange Act Reports with respect to the Trust Fund, the Trustee fails to
        comply
        with its obligations under the last sentence of Section 7.1, Section 8.9
        or
        Article X and such failure is not remedied within the lesser of ten (10)
        calendar days or such period in which the applicable Exchange Act Report
        can be
        filed timely (without taking into account any extensions), then, in the case
        of
        clauses (i) through (iii), then the Depositor or the Master Servicer may
        remove
        the Trustee and appoint a successor trustee by written instrument, in
        triplicate, one copy of which instrument shall be delivered to the Trustee,
        one
        copy of which shall be delivered to the Master Servicer and one copy to the
        successor trustee.

       

      
        
          
          

        

        
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      The
        Holders of Certificates entitled to at least 51% of the Voting Rights may
        at any
        time remove the Trustee and appoint a successor trustee by written instrument
        or
        instruments, in triplicate, signed by such Holders or their attorneys-in-fact
        duly authorized, one complete set of which instruments shall be delivered
        by the
        successor Trustee to the Master Servicer, one complete set to the Trustee
        so
        removed and one complete set to the successor so appointed. Notice of any
        removal of the Trustee shall be given to each Rating Agency by the Successor
        Trustee.

       

      Any
        resignation or removal of the Trustee and appointment of a successor trustee
        pursuant to any of the provisions of this Section 8.7 shall become effective
        upon acceptance of appointment by the successor trustee as provided in Section
        8.8 hereof.

       

      SECTION
        8.8 Successor Trustee.

       

      Any
        successor trustee appointed as provided in Section 8.7 hereof shall execute,
        acknowledge and deliver to the Depositor and to its predecessor trustee and
        the
        Master Servicer an instrument accepting such appointment hereunder and thereupon
        the resignation or removal of the predecessor trustee shall become effective
        and
        such successor trustee, without any further act, deed or conveyance, shall
        become fully vested with all the rights, powers, duties and obligations of
        its
        predecessor hereunder, with the like effect as if originally named as trustee
        herein. The Depositor, the Master Servicer and the predecessor trustee shall
        execute and deliver such instruments and do such other things as may reasonably
        be required for more fully and certainly vesting and confirming in the successor
        trustee all such rights, powers, duties, and obligations.

       

      No
        successor trustee shall accept appointment as provided in this Section 8.8
        unless at the time of such acceptance such successor trustee shall be eligible
        under the provisions of Section 8.6 hereof and its appointment shall not
        adversely affect the then current rating of the Certificates.

       

      Upon
        acceptance of appointment by a successor trustee as provided in this Section
        8.8, the Depositor shall mail notice of the succession of such trustee hereunder
        to all Holders of Certificates. If the Depositor fails to mail such notice
        within 10 days after acceptance of appointment by the successor trustee,
        the
        successor trustee shall cause such notice to be mailed at the expense of
        the
        Depositor.

       

      
        
          
          

        

        
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      SECTION
        8.9 Merger or Consolidation of Trustee.

       

      Any
        corporation into which the Trustee may be merged or converted or with which
        it
        may be consolidated or any corporation resulting from any merger, conversion
        or
        consolidation to which the Trustee shall be a party, or any corporation
        succeeding to the business of the Trustee, shall be the successor of the
        Trustee
        hereunder, provided that such corporation shall be eligible under the provisions
        of Section 8.6 hereof 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.

       

      The
        Trustee shall provide (x) written notice to the Depositor of any successor
        due
        to merger or consolidation of the trustee pursuant to this Section within
        five
        (5) days of the effectiveness of such merger or consolidation and (y) in
        writing
        and in form and substance reasonably satisfactory to the Depositor, all
        information reasonably requested by the Depositor in order to comply with
        its
        reporting obligation under Item 6.02 of Form 8-K with respect to a replacement
        Trustee.

       

      SECTION
        8.10 Appointment of Co-Trustee or Separate Trustee.

       

      Notwithstanding
        any other provisions of this Agreement, at any time, for the purpose of meeting
        any legal requirements of any jurisdiction in which any part of the Trust
        Fund
        or property securing any Mortgage Note may at the time be located, the Master
        Servicer and the Trustee acting jointly shall have the power and shall execute
        and deliver all instruments to appoint one or more Persons approved by the
        Trustee to act as co-trustee or co-trustees jointly with the Trustee, or
        separate trustee or separate trustees, of all or any part of the Trust Fund,
        and
        to vest in such Person or Persons, in such capacity and for the benefit of
        the
        Certificateholders, such title to the Trust Fund or any part thereof, whichever
        is applicable, and, subject to the other provisions of this Section 8.10,
        such
        powers, duties, obligations, rights and trusts as the Master Servicer and
        the
        Trustee may consider necessary or desirable. If the Master Servicer shall
        not
        have joined in such appointment within 15 days after the receipt by it of
        a
        request to do so, or in the case an Event of Default shall have occurred
        and be
        continuing, the Trustee alone shall have the power to make such appointment.
        No
        co-trustee or separate trustee hereunder shall be required to meet the terms
        of
        eligibility as a successor trustee under Section 8.6 and no notice to
        Certificateholders of the appointment of any co-trustee or separate trustee
        shall be required under Section 8.8.

       

      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)

              	
                To
                  the extent necessary to effectuate the purposes of this Section
                  8.10, all
                  rights, powers, duties and obligations conferred or imposed upon
                  the
                  Trustee shall be conferred or imposed upon and exercised or performed
                  by
                  the Trustee and such separate trustee or co-trustee jointly (it
                  being
                  understood that such separate trustee or co-trustee is not authorized
                  to
                  act separately without the Trustee joining in such act), except
                  to the
                  extent that under any law of any jurisdiction in which any particular
                  act
                  or acts are to be performed (whether as Trustee hereunder or as
                  successor
                  to the Master Servicer hereunder), the Trustee shall be incompetent
                  or
                  unqualified to perform such act or acts, in which event such rights,
                  powers, duties and obligations (including the holding of title
                  to the
                  applicable Trust Fund or any portion thereof in any such jurisdiction)
                  shall be exercised and performed singly by such separate trustee
                  or
                  co-trustee, but solely at the direction of the
                  Trustee;

              

      

       

      
        
          
          

        

        
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                (ii)

              	
                No
                  trustee hereunder shall be held personally liable by reason of
                  any act or
                  omission of any other trustee hereunder and such appointment shall
                  not,
                  and shall not be deemed to, constitute any such separate trustee
                  or
                  co-trustee as agent of the Trustee;

              

      

       

      
        	 	
                (iii)

              	
                The
                  Trustee may at any time accept the resignation of or remove any
                  separate
                  trustee or co-trustee; and

              

      

       

      
        	 	
                (iv)

              	
                The
                  Master Servicer, and not the Trustee, shall be liable for the payment
                  of
                  reasonable compensation, reimbursement and indemnification to any
                  such
                  separate trustee or co-trustee.

              

      

       

      Any
        notice, request or other writing given to the Trustee shall be deemed to
        have
        been given to each of the separate trustees and co-trustees, when and as
        effectively as if given to each of them. Every instrument appointing any
        separate trustee or co-trustee shall refer to this Agreement and the conditions
        of this Article VIII. Each separate trustee and co-trustee, upon its acceptance
        of the trusts conferred, shall be vested with the estates or property specified
        in its instrument of appointment, either jointly with the Trustee or separately,
        as may be provided therein, subject to all the provisions of this Agreement,
        specifically including every provision of this Agreement relating to the
        conduct
        of, affecting the liability of, or affording protection to, the Trustee.
        Every
        such instrument shall be filed with the Trustee and a copy thereof given
        to the
        Master Servicer and the Depositor.

       

      Any
        separate trustee or co-trustee may, at any time, constitute the Trustee its
        agent or attorney-in-fact, with full power and authority, to the extent not
        prohibited by law, to do any lawful act under or in respect of this Agreement
        on
        its behalf and in its name. If any separate trustee or co-trustee shall die,
        become incapable of acting, resign or be removed, all of its estates,
        properties, rights, remedies and trusts shall vest in and be exercised by
        the
        Trustee, to the extent permitted by law, without the appointment of a new
        or
        successor trustee.

       

      SECTION
        8.11 Tax Matters.

       

      It
        is
        intended that the assets with respect to which the REMIC election is to be
        made,
        as set forth in the preliminary statement shall constitute, and that the
        conduct
        of matters relating to such assets shall be such as to qualify such assets
        as, a
“real estate mortgage investment conduit” as defined in and in accordance with
        the REMIC Provisions. In furtherance of such intention, the Trustee covenants
        and agrees that it shall act as agent (and the Trustee is hereby appointed
        to
        act as agent) on behalf of the 2007-3 REMIC and that in such capacity it
        shall:
        (a) prepare and file, or cause to be prepared and filed, in a timely manner,
        a
        U.S. Real Estate Mortgage Investment Conduit Income Tax Return (Form 1066
        or any
        successor form adopted by the Internal Revenue Service) and prepare and file
        or
        cause to be prepared and filed with the Internal Revenue Service and applicable
        state or local tax authorities income tax or information returns for each
        taxable year with respect to the 2007-3 REMIC, containing such information
        and
        at the times and in the manner as may be required by the Code or state or
        local
        tax laws, regulations, or rules, and furnish or cause to be furnished to
        Certificateholders the schedules, statements or information at such times
        and in
        such manner as may be required thereby; (b) within thirty days of the Closing
        Date, furnish or cause to be furnished to the Internal Revenue Service, on
        Forms
        8811 or as otherwise may be required by the Code, the name, title, address,
        and
        telephone number of the person that the Holders of the Certificates may contact
        for tax information relating thereto, together with such additional information
        as may be required by such Form, and update such information at the time
        or
        times in the manner required by the Code; (c) make or cause to be made elections
        that such assets be treated as a REMIC on the federal tax return for its
        first
        taxable year (and, if necessary, under applicable state law); (d) prepare
        and
        forward, or cause to be prepared and forwarded, to the Certificateholders
        and to
        the Internal Revenue Service and, if necessary, state tax authorities, all
        information returns and reports as and when required to be provided to them
        in
        accordance with the REMIC Provisions, including without limitation, the
        calculation of any original issue discount using the prepayment assumption;
        (e)
        provide information necessary for the computation of tax imposed on the transfer
        of a Residual Certificate to a Person that is not a Permitted Transferee,
        or an
        agent (including a broker, nominee or other middleman) of a Non-Permitted
        Transferee, or a pass-through entity in which a Non-Permitted Transferee
        is the
        record holder of an interest (the reasonable cost of computing and furnishing
        such information may be charged to the Person liable for such tax); (f) to
        the
        extent that they are under its control conduct matters relating to such assets
        at all times that any Certificates are outstanding so as to maintain the
        status
        as a REMIC under the REMIC Provisions; (g) not knowingly or intentionally
        take
        any action or omit to take any action that would cause the termination of
        the
        2007-3 REMIC’s REMIC status; (h) pay, from the sources specified in the last
        paragraph of this Section 8.11, the amount of any federal or state tax,
        including prohibited transaction taxes as described below, imposed on any
        such
        REMIC prior to its termination when and as the same shall be due and payable
        (but such obligation shall not prevent the Trustee or any other appropriate
        Person from contesting any such tax in appropriate proceedings and shall
        not
        prevent the Trustee from withholding payment of such tax, if permitted by
        law,
        pending the outcome of such proceedings); (i) ensure that federal, state
        or
        local income tax or information returns shall be signed by the Trustee or
        such
        other person as may be required to sign such returns by the Code or state or
        local laws, regulations or rules; (j) maintain records relating to any such
        REMIC, including but not limited to the income, expenses, assets and liabilities
        thereof and the fair market value and adjusted basis of the assets determined
        at
        such intervals as may be required by the Code, as may be necessary to prepare
        the foregoing returns, schedules, statements or information; and (k) as and
        when
        necessary and appropriate, represent any such REMIC in any administrative
        or
        judicial proceedings relating to an examination or audit by any governmental
        taxing authority, request an administrative adjustment as to any taxable
        year of
        any such REMIC, enter into settlement agreements with any governmental taxing
        agency, extend any statute of limitations relating to any tax item of any
        such
        REMIC, and otherwise act on behalf of any such REMIC in relation to any tax
        matter or controversy involving it.

       

      
        
          
          

        

        
          99

          
            

          

        

        
          
          

        

      

       

      In
        order
        to enable the Trustee to perform its duties as set forth herein, the Depositor
        shall provide, or cause to be provided, to the Trustee within ten (10) days
        after the Closing Date all information or data that the Trustee requests
        in
        writing and determines to be relevant for tax purposes to the valuations
        and
        offering prices of the Certificates, including, without limitation, the price,
        yield, prepayment assumption and projected cash flows of the Certificates
        and
        the Mortgage Loans. Thereafter, the Depositor shall provide to the Trustee
        promptly upon written request therefor, any such additional information or
        data
        that the Trustee may, from time to time, reasonably request in order to enable
        the Trustee to perform its duties as set forth herein. The Depositor hereby
        indemnifies the Trustee for any losses, liabilities, damages, claims or expenses
        of the Trustee arising from any errors or miscalculations of the Trustee
        that
        result from any failure of the Depositor to provide, or to cause to be provided,
        accurate information or data to the Trustee on a timely basis.

       

      
        
          
          

        

        
          100

          
            

          

        

        
          
          

        

      

       

      In
        the
        event that any tax is imposed on “prohibited transactions” of the REMIC as
        defined in Section 860F(a)(2) of the Code, on the “net income from foreclosure
        property” of the REMIC as defined in Section 860G(c) of the Code, on any
        contribution to the REMIC after the Startup Day pursuant to Section 860G(d)
        of
        the Code, or any other tax is imposed, if not paid as otherwise provided
        for
        herein, such tax shall be paid by (i) the Trustee, if any such other tax
        arises
        out of or results from a breach by the Trustee of any of its obligations
        under
        this Agreement which breach was caused by its negligence or willful misconduct,
        (ii) the Master Servicer, in the case of any such minimum tax, or if such
        tax
        arises out of or results from a breach by the Master Servicer of any of their
        obligations under this Agreement, (iii) the Seller, if any such tax arises
        out
        of or results from the Seller’s obligation to repurchase a Mortgage Loan
        pursuant to Section 2.2 or 2.3 or (iv) in all other cases, or in the event
        that
        the Trustee, the Master Servicer or the Seller fails to honor its obligations
        under the preceding clauses (i), (ii) or (iii), any such tax will be paid
        with
        amounts otherwise to be distributed to the Certificateholders, as provided
        in
        Section 3.8(b). 

       

      ARTICLE
        IX

      TERMINATION

       

      SECTION
        9.1 Termination upon Liquidation or Purchase of all Mortgage Loans.

       

      Subject
        to Section 9.3, the obligations and responsibilities of the Depositor, the
        Master Servicer and the Trustee created hereby with respect to the Trust
        Fund
        shall terminate upon the earlier of (a) the purchase by the Master Servicer
        of
        all Mortgage Loans (and REO Properties) remaining in the Trust Fund at the
        price
        equal to the sum of (i) 100% of the Stated Principal Balance of each Mortgage
        Loan (other than a Mortgage Loan that has been foreclosed and subject to
        clause
        (ii)) plus one month’s accrued interest thereon at the applicable Adjusted
        Mortgage Rate, (ii) the lesser of (x) the appraised value of any REO Property
        as
        determined by the higher of two appraisals completed by two independent
        appraisers selected by the Master Servicer at the expense of the Master Servicer
        and (y) the Stated Principal Balance of each Mortgage Loan related to any
        REO
        Property, plus accrued and unpaid interest thereon at the applicable Adjusted
        Mortgage Rate, and (iii) any costs and damages incurred by the Trust in
        connection with the noncompliance of such Mortgage Loan with any specifically
        applicable predatory or abusive lending law, and (b) the later of (i) the
        maturity or other liquidation (or any Advance with respect thereto) of the
        last
        Mortgage Loan remaining in the Trust Fund and the disposition of all REO
        Property and (ii) the distribution to Certificateholders of all amounts required
        to be distributed to them pursuant to this Agreement. In no event shall the
        trusts created hereby continue beyond the earlier of (i) 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’s, living on
        the date hereof, and (ii) the Latest Possible Maturity Date. The right to
        purchase all Mortgage Loans and REO Properties pursuant to clause (a) above
        shall be conditioned upon the Pool Principal Balance, at the time of any
        such
        repurchase, being less than ten percent (10%) of the Cut-off Date Pool Principal
        Balance. The Master Servicer will deposit the funds for such purchase into
        the
        Certificate Account pursuant to Section 3.5(b)(viii).

       

      
        
          
          

        

        
          101

          
            

          

        

        
          
          

        

      

       

      SECTION
        9.2 Final Distribution on the Certificates.

       

      If
        on any
        Determination Date, the Master Servicer determines that there are no Outstanding
        Mortgage Loans and no other funds or assets in the Trust Fund other than
        the
        funds in the Certificate Account, the Master Servicer shall direct the Trustee
        promptly to send a final distribution notice to each Certificateholder. If
        the
        Master Servicer elects to terminate the Trust Fund pursuant to clause (a)
        of
        Section 9.1, at least 20 days prior to the date notice is to be mailed to
        the
        affected Certificateholders, the Master Servicer shall notify the Depositor
        and
        the Trustee of the date the Master Servicer intends to terminate the Trust
        Fund
        and of the applicable repurchase price of the Mortgage Loans and REO
        Properties.

       

      Notice
        of
        any termination of the Trust Fund, specifying the Distribution Date on which
        Certificateholders may surrender their Certificates for payment of the final
        distribution and cancellation, shall be given promptly by the Trustee by
        letter
        to Certificateholders mailed not earlier than the 10th day and no later than
        the
        15th day of the month next preceding the month of such final distribution.
        Any
        such notice shall specify (a) the Distribution Date upon which final
        distribution on the Certificates will be made upon presentation and surrender
        of
        Certificates at the office therein designated, (b) the amount of such final
        distribution, (c) the location of the office or agency at which such
        presentation and surrender must be made, and (d) that the Record Date otherwise
        applicable to such Distribution Date is not applicable, distributions being
        made
        only upon presentation and surrender of the Certificates at the office therein
        specified. The Master Servicer will give such notice to each Rating Agency
        at
        the time such notice is given to Certificateholders.

       

      In
        the
        event such notice is given, the Master Servicer shall cause all funds in
        the
        Certificate Account to be remitted to the Trustee for deposit in the
        Distribution Account on the Business Day prior to the applicable Distribution
        Date in an amount equal to the final distribution in respect of the
        Certificates. Upon such final deposit with respect to the Trust Fund and
        the
        receipt by the Trustee of a Request for Release therefor, the Trustee shall
        promptly release to the Master Servicer the Mortgage Files for the Mortgage
        Loans.

       

      Upon
        presentation and surrender of the Certificates, the Trustee shall cause to
        be
        distributed to the Certificateholders of each Class, in the order set forth
        in
        Section 4.2 hereof, on the final Distribution Date, in the case of the
        Certificateholders, in proportion to their respective Percentage Interests,
        with
        respect to Certificateholders of the same Class, an amount equal to (i) as
        to
        each Class of Regular Certificates, the Class Certificate Balance thereof
        plus
        accrued interest thereon in the case of an interest bearing Certificate,
        and
        (ii) as to the Residual Certificates, the amount, if any, which remains on
        deposit in the Distribution Account (other than the amounts retained to meet
        claims) after application pursuant to clause (i) above. 

       

      
        
          
          

        

        
          102

          
            

          

        

        
          
          

        

      

       

      In
        the
        event that any affected Certificateholders shall not surrender Certificates
        for
        cancellation within six months after the date specified in the above mentioned
        written notice, the Trustee shall give a second written notice to the remaining
        Certificateholders to surrender their Certificates for cancellation and receive
        the final distribution with respect thereto. If within six months after the
        second notice all the applicable Certificates shall not have been surrendered
        for cancellation, the Trustee may take appropriate steps, or may appoint
        an
        agent to take appropriate steps, to contact the remaining Certificateholders
        concerning surrender of their Certificates, and the cost thereof shall be
        paid
        out of the funds and other assets which remain a part of the Trust Fund.
        If
        within one year after the second notice all Certificates shall not have been
        surrendered for cancellation, the Holders of each of the Class A-R Certificates
        shall be entitled to all unclaimed funds and other assets of the Trust Fund,
        held for distribution to such Certificateholders, which remain subject
        hereto.

       

      SECTION
        9.3 Additional Termination Requirements.

       

      
        	 	
                (a)

              	
                In
                  the event the Master Servicer exercises its purchase option as
                  provided in
                  Section 9.1, the Trust Fund and the REMIC created hereunder shall
                  be
                  terminated in accordance with the following additional requirements,
                  unless the Trustee has been supplied with an Opinion of Counsel,
                  at the
                  expense of the Master Servicer, to the effect that the failure
                  to comply
                  with the requirements of this Section 9.3 will not (i) result in
                  the
                  imposition of taxes on “prohibited transactions” on the REMIC as defined
                  in Section 860F of the Code, or (ii) cause the REMIC to fail to
                  qualify as
                  a REMIC at any time that any Certificates are
                  outstanding:

              

      

       

      
        	 	
                (i)

              	
                Within
                  90 days prior to the final Distribution Date set forth in the notice
                  given
                  by the Master Servicer under Section 9.2, the Master Servicer shall
                  prepare and the Trustee, at the expense of the “tax matters person,” shall
                  adopt a plan of complete liquidation within the meaning of Section
                  860F(a)(4) of the Code for the REMIC created hereunder which, as
                  evidenced
                  by an Opinion of Counsel addressed to the Trustee (which opinion
                  shall not
                  be an expense of the Trustee or the Tax Matters Person), meets
                  the
                  requirements of a qualified liquidation;
                  and

              

      

       

      
        	 	
                (ii)

              	
                Within
                  90 days after the time of adoption of such plans of complete liquidation,
                  the Trustee shall sell all of the assets of the Trust Fund to the
                  Master
                  Servicer for cash in accordance with Section
                  9.1.

              

      

       

      
        	 	
                (b)

              	
                The
                  Trustee as agent for the REMIC established hereunder hereby agrees
                  to
                  adopt and sign such a plan of complete liquidation upon the written
                  request of the Master Servicer, and the receipt of the Opinion
                  of Counsel
                  referred to in Section 9.3(a)(1) and to take such other action
                  in
                  connection therewith as may be reasonably requested by the Master
                  Servicer.

              

      

       

      
        	 	
                (c)

              	
                By
                  their acceptance of the Certificates, the Holders thereof hereby
                  authorize
                  the Master Servicer to prepare and the Trustee to adopt and sign
                  plans of
                  complete liquidation.

              

      

       

      
        
          
          

        

        
          103

          
            

          

        

        
          
          

        

      

       

      ARTICLE
        X

      EXCHANGE
        ACT REPORTING

       

      SECTION
        10.1 Filing Obligations.

       

      The
        Master Servicer, the Trustee and the Seller shall reasonably cooperate with
        the
        Depositor in connection with the satisfaction of the Depositor’s reporting
        requirements under the Exchange Act with respect to the Trust Fund. In addition
        to the information specified below, if so requested by the Depositor for
        the
        purpose of satisfying its reporting obligation under the Exchange Act, the
        Master Servicer, the Trustee and the Seller shall (and the Master Servicer
        shall
        cause each Subservicer to) provide the Depositor with (a) such information
        which
        is available to such Person without unreasonable effort or expense and within
        such timeframe as may be reasonably requested by the Depositor to comply
        with
        the Depositor’s reporting obligations under the Exchange Act and (b) to the
        extent such Person is a party (and the Depositor is not a party) to any
        agreement or amendment requested of it by the Depositor and required to be
        filed, copies of such agreement or amendment in EDGAR-compatible
        form.

       

      SECTION
        10.2 Form 10-D Filings.

       

      
        	 	
                (a)

              	
                Although
                  the Depositor is responsible under Regulation AB for filing the
                  Form 10-D,
                  the Trustee hereby agrees it shall prepare for filing and file
                  within
                  fifteen days after each Distribution Date (subject to permitted
                  extensions
                  under the Exchange Act) with the SEC with respect to the Trust
                  Fund, a
                  Form 10-D with copies of the Monthly Report and, to the extent
                  delivered
                  to the Trustee, no later than ten days following the Distribution
                  Date,
                  such other information identified by the Depositor or the Master
                  Servicer,
                  in writing, to be filed with the SEC (such other information, the
                  “Additional Designated Information”). If the Depositor or Master Servicer
                  directs that any Additional Designated Information is to be filed
                  with any
                  Form 10-D, the Depositor or Master Servicer, as the case may be,
                  shall
                  specify the Item on Form 10-D to which such information is responsive
                  and,
                  with respect to any Exhibit to be filed on Form 10-D, the Exhibit
                  number.
                  Any information to be filed on Form 10-D shall be delivered to
                  the Trustee
                  in EDGAR-compatible form or as otherwise agreed upon by the Trustee
                  and
                  the Depositor or the Master Servicer, as the case may be, at the
                  Depositor’s expense, and any necessary conversion to EDGAR-compatible
                  format will be at the Depositor’s expense. At the reasonable request of,
                  and in accordance with the reasonable directions of, the Depositor
                  or the
                  Master Servicer, subject to the two preceding sentences, the Trustee
                  shall
                  prepare for filing and file an amendment to any Form 10-D previously
                  filed
                  with the SEC with respect to the Trust Fund. The Master Servicer
                  shall
                  sign the Form 10-D filed on behalf of the Trust
                  Fund.

              

      

       

      
        	 	
                (b)

              	
                No
                  later than each Distribution Date, each of the Master Servicer
                  and the
                  Trustee shall notify (and the Master Servicer shall cause any Subservicer
                  to notify) the Depositor and the Master Servicer of any Form 10-D
                  Disclosure Item relating to it, together with a description of
                  any such
                  Form 10-D Disclosure Item in form and substance reasonably acceptable
                  to
                  the Depositor. In addition to such information as the Master Servicer
                  and
                  the Trustee are obligated to provide pursuant to other provisions
                  of this
                  Agreement, if so requested by the Depositor, each of the Master
                  Servicer
                  and the Trustee shall provide such information which is available
                  to the
                  Master Servicer and the Trustee, as applicable, without unreasonable
                  effort or expense regarding the performance or servicing of the
                  Mortgage
                  Loans (in the case of the Trustee, based on the information provided
                  by
                  the Master Servicer) as is reasonably required of the Depositor
                  to
                  facilitate preparation of distribution reports in accordance with
                  Item
                  1121 of Regulation AB. Such information shall be provided concurrently
                  with the delivering of the reports specified in Section 4.6 in
                  the case of
                  the Master Servicer and the Monthly Statement in the case of the
                  Trustee,
                  commencing with the first such report due not less than five (5)
                  Business
                  Days following such request.

              

      

       

      
        
          
          

        

        
          104

          
            

          

        

        
          
          

        

      

       

      
        	 	
                (c)

              	
                The
                  Trustee shall not have any responsibility to file any items (other
                  than
                  those generated by it) that have not been received in a format
                  suitable
                  (or readily convertible into a format suitable) for electronic
                  filing via
                  the EDGAR system and shall not have any responsibility to convert
                  any such
                  items to such format (other than those items generated by it or
                  that are
                  readily convertible to such format). The Trustee shall have no
                  liability
                  to the Certificateholders, the Trust Fund, the Master Servicer or the
                  Depositor with respect to any failure to properly prepare or file
                  any of
                  Form 10-D to the extent that such failure is not the result of
                  any
                  negligence, bad faith or willful misconduct on its part. For avoidance
                  of
                  doubt, the Trustee shall have no liability whatsoever under the
                  Securities
                  Act or the Exchange Act

              

      

       

      SECTION
        10.3 Form 8-K Filings.

       

      The
        Master Servicer shall prepare and file on behalf of the Trust Fund any Form
        8-K
        required by the Exchange Act. Each Form 8-K must be signed by the Master
        Servicer. Each of the Trustee and the Master Servicer shall (and the Master
        Servicer shall cause any Subservicer to), promptly notify the Depositor and
        the
        Master Servicer (if the notifying party is not the Master Servicer), but
        in no
        event later than one (1) Business Day after its occurrence, of any Reportable
        Event related to it, of which it has actual knowledge. The Master Servicer
        shall
        notify the Depositor if any material pool characteristic of the actual asset
        pool at the time of issuance of the Certificates differs by five percent
        or more
        (other than as a result of the pool assets converting into cash in accordance
        with their terms) from the description of the asset pool in the Prospectus
        Supplement.

       

      SECTION
        10.4 Form 10-K Filings.

       

      Prior
        to
        March 30th of each year, commencing in 2008 (or such earlier date as may
        be
        required by the Exchange Act), the Depositor shall prepare and file on behalf
        of
        the Trust Fund a Form 10-K, in form and substance as required by the Exchange
        Act. A senior officer in charge of the servicing function of the Master Servicer
        shall sign each Form 10-K filed on behalf of the Trust Fund. Such Form 10-K
        shall include as exhibits each (i) annual compliance statement described
        under
        Section 3.16(a), (ii) annual report on assessments of compliance with servicing
        criteria described under Section 10.7 and (iii) accountant’s report described
        under Section 10.7. Each Form 10-K shall also include any Sarbanes-Oxley
        Certification required to be included therewith, as described in Section
        10.5.

       

      
        
          
          

        

        
          105

          
            

          

        

        
          
          

        

      

       

      If
        the
        Item 1119 Parties listed on Exhibit P have changed since the Closing Date,
        no
        later than March 1st of each year, the Depositor shall provide each of the
        Master Servicer (and the Master Servicer shall provide any Subservicer) and
        the
        Trustee with an updated Exhibit P setting forth the Item 1119 Parties. No
        later
        than March 15th
        of each
        year, commencing in 2008, the Master Servicer and the Trustee shall notify
        (and
        the Master Servicer shall cause any Subservicer to notify) the Depositor
        of any
        Form 10-K Disclosure Item related to it, together with a description of any
        such
        Form 10-K Disclosure Item in form and substance reasonably acceptable to
        the
        Depositor. Additionally, each of the Master Servicer and the Trustee shall
        provide to the Depositor, and shall cause each Reporting Subcontractor retained
        by the Master Servicer or the Trustee, as applicable, and in the case of
        the
        Master Servicer shall cause each Subservicer that is a Reporting Subcontractor,
        to provide to the Depositor, the following information no later than March
        15th
        of each
        year in which a Form 10-K is required to be filed on behalf of the Trust
        Fund:
        (i) if such Person’s report on assessment of compliance with servicing criteria
        described under Section 10.7 or related registered public accounting firm
        attestation report described under Section 10.7 identifies any material instance
        of noncompliance, notification of such instance of noncompliance and (ii)
        if any
        such Person’s report on assessment of compliance with servicing criteria or
        related registered public accounting firm attestation report is not provided
        to
        be filed as an exhibit to such Form 10-K, information detailing the explanation
        why such report is not included.

       

      SECTION
        10.5 Sarbanes-Oxley Certification.

       

      Each
        Form
        10-K shall include a certification (the “Sarbanes-Oxley Certification”) required
        by Rules 13a-14(d) and 15d-14(d) under the Exchange Act (pursuant to Section
        302
        of the Sarbanes-Oxley Act of 2002 and the rules and regulations of the SEC
        promulgated thereunder (including any interpretations thereof by the SEC’s
        staff)). No later than March 15th of each year in which a Form 10-K is required
        to be filed on behalf of the Trust Fund, beginning in 2008, the Master Servicer
        (unless such Person is the Certifying Person) and the Trustee shall, and
        the
        Master Servicer shall cause each Subservicer to, provide to the Person who
        signs
        the Sarbanes-Oxley Certification (the “Certifying Person”) a certification
        (each, a “Performance Certification”), substantially in the form attached hereto
        as Exhibit N-1 (in the case of a Subservicer) and Exhibit N-2 (in the case
        of
        the Trustee), unless such other form is mutually agreed upon, on which the
        Certifying Person, the entity for which the Certifying Person acts as an
        officer, and such entity’s officers, directors and Affiliates (collectively with
        the Certifying Person, “Certification Parties”) can reasonably rely. The senior
        officer in charge of the servicing function of the Master Servicer shall
        serve
        as the Certifying Person on behalf of the Trust Fund. Neither the Master
        Servicer nor the Depositor will request delivery of a certification under
        this
        clause unless the Depositor is required under the Exchange Act to file an
        annual
        report on Form 10-K with respect to the Trust Fund. In the event that prior
        to
        the filing date of the Form 10-K in March of each year, a Responsible Officer
        of
        the Trustee or the Depositor has actual knowledge of information material
        to the
        Sarbanes-Oxley Certification, the Trustee or the Depositor, as the case may
        be,
        shall promptly notify the Master Servicer and the Depositor. The respective
        parties hereto agree to cooperate with all reasonable requests made by any
        Certifying Person or Certification Party in connection with such Person’s
        attempt to conduct any due diligence that such Person reasonably believes
        to be
        appropriate in order to allow it to deliver any Sarbanes-Oxley Certification
        or
        portion thereof with respect to the Trust Fund.

       

      
        
          
          

        

        
          106

          
            

          

        

        
          
          

        

      

       

      SECTION
        10.6 Form 15 Filing.

       

      Prior
        to
        January 31st of the first year in which the Depositor is able to do so under
        applicable law, the Depositor shall file a Form 15 relating to the automatic
        suspension of reporting in respect of the Trust Fund under the Exchange
        Act.

       

      SECTION
        10.7 Report on Assessment of Compliance and Attestation.

       

      
        	 	
                (a)

              	
                On
                  or before March 15th
                  of
                  each calendar year in which a Form 10-K is required to be filed
                  on behalf
                  of the Trust Fund, commencing in
                  2008:

              

      

       

      (i) Each
        of
        the Master Servicer and the Trustee shall deliver to the Depositor and the
        Master Servicer a report (in form and substance reasonably satisfactory to
        the
        Depositor) regarding the Master Servicer’s or the Trustee’s, as applicable,
        assessment of compliance with the Servicing Criteria during the immediately
        preceding calendar year, as required under Rules 13a-18 and 15d-18 of the
        Exchange Act and Item 1122 of Regulation AB. Such report shall be signed
        by an
        authorized officer of such Person and shall address each of the Servicing
        Criteria specified on a certification substantially in the form of Exhibit
        O
        hereto, unless such other form is mutually agreed upon and delivered to the
        Depositor concurrently with the execution of this Agreement. To the extent
        any
        of the Servicing Criteria are not applicable to such Person, with respect
        to
        asset-backed securities transactions taken as a whole involving such Person
        and
        that are backed by the same asset type backing the Certificates, such report
        shall include such a statement to that effect. The Depositor and the Master
        Servicer, and each of their respective officers and directors shall be entitled
        to rely upon each such servicing criteria assessment.

       

      (ii) Each
        of
        the Master Servicer and the Trustee shall deliver to the Depositor and the
        Master Servicer a report of a registered public accounting firm reasonably
        acceptable to the Depositor that attests to, and reports on, the assessment
        of
        compliance made by Master Servicer or the Trustee, as applicable, and delivered
        pursuant to the preceding paragraphs. Such attestation shall be in accordance
        with Rules 1-02(a)(3) and 2-02(g) of Regulation S-X under the Securities
        Act and
        the Exchange Act, including, without limitation that in the event that an
        overall opinion cannot be expressed, such registered public accounting firm
        shall state in such report why it was unable to express such an opinion.
        Such
        report must be available for general use and not contain restricted use
        language. To the extent any of the Servicing Criteria are not applicable
        to such
        Person, with respect to asset-backed securities transactions taken as a whole
        involving such Person and that are backed by the same asset type backing
        the
        Certificates, such report shall include such a statement that that
        effect.

       

      
        
          
          

        

        
          107

          
            

          

        

        
          
          

        

      

       

      (iii) The
        Master Servicer shall cause each Subservicer that is a Reporting Subcontractor
        engaged by it to deliver to the Depositor an assessment of compliance and
        accountants’ attestation as and when provided in paragraphs (a) and (b) of this
        Section 10.7.

       

      (iv) The
        Trustee shall cause each Reporting Subcontractor engaged by it to deliver
        to the
        Depositor and the Master Servicer an assessment of compliance and accountants’
attestation as and when provided in paragraphs (a) and (b) of this
        Section.

       

      
        	 	
                (b)

              	
                Each
                  assessment of compliance provided by a Subservicer pursuant to
                  Section
                  10.7(a)(iii) shall address each of the Servicing Criteria specified
                  on a
                  certification substantially in the form of Exhibit O hereto delivered
                  to
                  the Depositor concurrently with the execution of this Agreement
                  or, in the
                  case of a Subservicer subsequently appointed as such, on or prior
                  to the
                  date of such appointment. An assessment of compliance provided
                  by a
                  Subcontractor pursuant to Section 10.7(a)(iii) or (iv) need not
                  address
                  any elements of the Servicing Criteria other than those specified
                  by the
                  Master Servicer or the Trustee, as applicable, pursuant to Section
                  10.7(a)(i).

              

      

       

      SECTION
        10.8 Use of Subservicers and Subcontractors.

       

      
        	 	
                (a)

              	
                The
                  Master Servicer shall cause any Subservicer that is a Reporting
                  Subcontractor used by the Master Servicer (or by any Subservicer)
                  for the
                  benefit of the Depositor to comply with the provisions of Section
                  3.16 and
                  this Article X to the same extent as if such Subservicer were the
                  Master
                  Servicer (except with respect to the Master Servicer’s duties with respect
                  to preparing and filing any Exchange Act Reports or as the Certifying
                  Person). The Master Servicer shall be responsible for obtaining
                  from each
                  Subservicer that is a Reporting Subcontractor and delivering to
                  the
                  Depositor any servicer compliance statement required to be delivered
                  by
                  such Subservicer under Section 3.16, any assessment of compliance
                  and
                  attestation required to be delivered by such Subservicer under
                  Section
                  10.7 and any certification required to be delivered to the Certifying
                  Person under Section 10.5 as and when required to be delivered.
                  As a
                  condition to the succession to any Subservicer as subservicer under
                  this
                  Agreement by any Person (i) into which such Subservicer may be
                  merged or
                  consolidated, or (ii) which may be appointed as a successor to
                  any
                  Subservicer, the Master Servicer shall provide to the Depositor,
                  at least
                  fifteen (15) calendar days prior to the effective date of such
                  succession
                  or appointment, (x) written notice to the Depositor of such succession
                  or
                  appointment and (y) in writing and in form and substance reasonably
                  satisfactory to the Depositor, all information reasonably requested
                  by the
                  Depositor in order to comply with its reporting obligation under
                  Item 6.2
                  of Form 8-K.

              

      

       

      
        	 	
                (b)

              	
                It
                  shall not be necessary for the Master Servicer or any Subservicer
                  to seek
                  the consent of the Depositor or any other party hereto to the utilization
                  of any Subcontractor. The Master Servicer shall promptly upon request
                  provide to the Depositor (or any designee of the Depositor, such
                  as the
                  Master Servicer or administrator) a written description (in form
                  and
                  substance satisfactory to the Depositor) of the role and function
                  of each
                  Subcontractor utilized by such Person (or in the case of the Master
                  Servicer or any Subservicer), specifying (i) the identity of each
                  such
                  Subcontractor, (ii) which (if any) of such Subcontractors are
                  “participating in the servicing function” within the meaning of Item 1122
                  of Regulation AB, and (iii) which elements of the Servicing Criteria
                  will
                  be addressed in assessments of compliance provided by each Subcontractor,
                  who is a Reporting Subcontractor, identified pursuant to clause
                  (ii) of
                  this paragraph.

              

      

       

      
        
          
          

        

        
          108

          
            

          

        

        
          
          

        

      

       

      
        	 	
                (c)

              	
                As
                  a condition to the utilization of any Subcontractor determined
                  to be a
                  Reporting Subcontractor, the Master Servicer shall cause any such
                  Subcontractor used by such Person (or in the case of the Master
                  Servicer
                  or any Subservicer) for the benefit of the Depositor to comply
                  with the
                  provisions of Sections 10.7 and 10.9 of this Agreement to the same
                  extent
                  as if such Subcontractor were the Master Servicer (except with
                  respect to
                  the Master Servicer’s duties with respect to preparing and filing any
                  Exchange Act Reports or as the Certifying Person). The Master Servicer
                  shall be responsible for obtaining from each Subcontractor and
                  delivering
                  to the Depositor and the Master Servicer, any assessment of compliance
                  and
                  attestation required to be delivered by such Subcontractor under
                  Section
                  10.7, in each case as and when required to be
                  delivered.

              

      

       

      SECTION
        10.9 Amendments.

       

      In
        the
        event the parties to this Agreement desire to further clarify or amend any
        provision of this Article X, this Agreement shall be amended to reflect the
        new
        agreement between the parties covering matters in this Article X pursuant
        to
        Section 11.1, which amendment shall not require any Opinion of Counsel or
        Rating
        Agency confirmations or the consent of any Certificateholder. If, during
        the
        period that the Depositor is required to file Exchange Act Reports with respect
        to the Trust Fund, the Master Servicer is no longer an Affiliate of the
        Depositor, the Depositor shall assume the obligations and responsibilities
        of
        the Master Servicer in this Article X with respect to the preparation and
        filing
        of the Exchange Act Reports and/or acting as the Certifying Person, if the
        Depositor has received indemnity from such successor Master Servicer
        satisfactory to the Depositor, and such Master Servicer has agreed to provide
        a
        Sarbanes-Oxley Certification to the Depositor substantially in the form of
        Exhibit Q.

       

      ARTICLE
        XI

      MISCELLANEOUS
        PROVISIONS

       

      SECTION
        11.1 Amendment.

       

      This
        Agreement may be amended from time to time by the Depositor, the Master Servicer
        and the Trustee without the consent of any of the Certificateholders (i)
        to cure
        any ambiguity or mistake, (ii) to correct any defective provision herein
        or to
        supplement any provision herein which may be inconsistent with any other
        provision herein, (iii) to add to the duties of the Depositor, the Seller
        or the
        Master Servicer, (iv) to add any other provisions with respect to matters
        or
        questions arising hereunder or (v) to modify, alter, amend, add to or rescind
        any of the terms or provisions contained in this Agreement; provided that
        any
        action pursuant to clauses (iv) or (v) above shall not, as evidenced by an
        Opinion of Counsel delivered to the Trustee (which Opinion of Counsel shall
        not
        be an expense of the Trustee or the Trust Fund), adversely affect in any
        material respect the interests of any Certificateholder; provided, however,
        that
        the amendment shall not be deemed to adversely affect in any material respect
        the interests of the Certificateholders if the Person requesting the amendment
        obtains a letter from each Rating Agency stating that the amendment would
        not
        result in the downgrading or withdrawal of the respective ratings then assigned
        to the Certificates; it being understood and agreed that any such letter
        in and
        of itself will not represent a determination as to the materiality of any
        such
        amendment and will represent a determination only as to the credit issues
        affecting any such rating. The Trustee, the Depositor and the Master Servicer
        also may at any time and from time to time amend this Agreement without the
        consent of the Certificateholders to modify, eliminate or add to any of its
        provisions to such extent as shall be necessary or helpful to (i) maintain
        the
        qualification of the REMIC established hereunder as a REMIC under the Code,
        (ii)
        avoid or minimize the risk of the imposition of any tax on the REMIC established
        hereunder pursuant to the Code that would be a claim at any time prior to
        the
        final redemption of the Certificates or (iii) comply with any other requirements
        of the Code, provided that the Trustee has been provided an Opinion of Counsel,
        which opinion shall be an expense of the party requesting such opinion but
        in
        any case shall not be an expense of the Trustee or the Trust Fund, to the
        effect
        that such action is necessary or helpful to, as applicable, (i) maintain
        such
        qualification, (ii) avoid or minimize the risk of the imposition of such
        a tax
        or (iii) comply with any such requirements of the Code.

       

      
        
          
          

        

        
          109

          
            

          

        

        
          
          

        

      

       

      This
        Agreement may also be amended from time to time by the Depositor, the Master
        Servicer and the Trustee with the consent of the Holders of a Majority in
        Interest of each Class of Certificates affected thereby for the purpose of
        adding any provisions to or changing in any manner or eliminating any of
        the
        provisions of this Agreement or of modifying in any manner the rights of
        the
        Holders of Certificates; provided, however, that no such amendment shall
        (i)
        reduce in any manner the amount of, or delay the timing of, payments required
        to
        be distributed on any Certificate without the consent of the Holder of such
        Certificate, (ii) adversely affect in any material respect the interests
        of the
        Holders of any Class of Certificates in a manner other than as described
        in (i),
        without the consent of the Holders of Certificates of such Class evidencing,
        as
        to such Class, Percentage Interests aggregating 66%, or (iii) reduce the
        aforesaid percentages of Certificates the Holders of which are required to
        consent to any such amendment, without the consent of the Holders of all
        such
        Certificates then outstanding. In addition, the permitted activities of the
        Trust under this Agreement cannot be significantly modified without the approval
        of Holders of Certificates evidencing a Majority in Interest.

       

      Notwithstanding
        any contrary provision of this Agreement, the Trustee shall not consent to
        any
        amendment to this Agreement unless it shall have first received an Opinion
        of
        Counsel, which opinion shall not be an expense of the Trustee or the Trust
        Fund,
        to the effect that such amendment will not cause the imposition of any tax
        on
        the REMIC established hereunder or the Certificateholders or cause the REMIC
        established hereunder to fail to qualify as a REMIC at any time that any
        Certificates are outstanding.

       

      
        
          
          

        

        
          110

          
            

          

        

        
          
          

        

      

       

      Promptly
        after the execution of any amendment to this Agreement requiring the consent
        of
        Certificateholders, the Trustee shall furnish written notification of the
        substance or a copy of such amendment to each Certificateholder and each
        Rating
        Agency.

       

      It
        shall
        not be necessary for the consent of Certificateholders under this Section
        to
        approve the particular form of any proposed amendment, but it shall be
        sufficient if such consent shall approve the substance thereof. The manner
        of
        obtaining such consents and of evidencing the authorization of the execution
        thereof by Certificateholders shall be subject to such reasonable regulations
        as
        the Trustee may prescribe.

       

      Nothing
        in this Agreement shall require the Trustee to enter into an amendment without
        receiving an Opinion of Counsel (which Opinion shall not be an expense of
        the
        Trustee or the Trust Fund), satisfactory to the Trustee that (i) such amendment
        is permitted and is not prohibited by this Agreement and that all requirements
        for amending this Agreement have been complied with; and (ii) either (A)
        the
        amendment does not adversely affect in any material respect the interests
        of any
        Certificateholder or (B) the conclusion set forth in the immediately preceding
        clause (A) is not required to be reached pursuant to this Section
        11.1.

       

      SECTION
        11.2 Recordation of Agreement; Counterparts.

       

      This
        Agreement is subject to recordation in all appropriate public offices for
        real
        property records in all the counties or other comparable jurisdictions in
        which
        any or all of the properties subject to the Mortgages are situated, and in
        any
        other appropriate public recording office or elsewhere, such recordation
        to be
        effected by the Master Servicer at its expense, but only upon direction a
        majority of the Certificateholders to the effect that such recordation
        materially and beneficially affects the interests of the
        Certificateholders.

       

      For
        the
        purpose of facilitating the recordation of this Agreement as herein provided
        and
        for other purposes, this Agreement may be executed (by facsimile or otherwise)
        simultaneously in any number of counterparts, each of which counterparts
        shall
        be deemed to be an original, and such counterparts shall constitute but one
        and
        the same instrument.

       

      SECTION
        11.3 Governing Law.

       

      THIS
        AGREEMENT (OTHER THAN SECTION 2.1 HEREOF) SHALL BE CONSTRUED IN ACCORDANCE
        WITH
        AND GOVERNED BY THE SUBSTANTIVE LAWS OF THE STATE OF NEW YORK APPLICABLE
        TO
        AGREEMENTS MADE AND TO BE PERFORMED IN THE STATE OF NEW YORK AND THE
        OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HERETO AND THE
        CERTIFICATEHOLDERS SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS. SECTION
        2.1
        OF THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE
        SUBSTANTIVE LAWS OF THE STATE OF DELAWARE APPLICABLE TO AGREEMENTS MADE AND
        TO
        BE PERFORMED IN THE STATE OF DELAWARE AND THE OBLIGATIONS, RIGHTS AND REMEDIES
        OF THE PARTIES HERETO AND THE CERTIFICATEHOLDERS UNDER SUCH SECTION SHALL
        BE
        DETERMINED IN ACCORDANCE WITH SUCH LAWS.

       

      
        
          
          

        

        
          111

          
            

          

        

        
          
          

        

      

       

      SECTION
        11.4 Intention of Parties.

       

      It
        is the
        express intent of the parties hereto that the conveyance of the Trust Fund
        by
        the Depositor to the Trustee be, and be construed as, absolute sales thereof
        to
        the Trustee. It is, further, not the intention of the parties that such
        conveyances be deemed a pledge thereof by the Depositor to the Trustee. However,
        in the event that, notwithstanding the intent of the parties, such assets
        are
        held to be the property of the Depositor, or if for any other reason this
        Agreement is held or deemed to create a security interest in such assets,
        then
        (i) this Agreement shall be deemed to be a security agreement within the
        meaning
        of the Uniform Commercial Code of the State of New York and (ii) the conveyance
        provided for in this Agreement shall be deemed to be an assignment and a
        grant
        by the Depositor to the Trustee, for the benefit of the Certificateholders,
        of a
        security interest in all of the assets that constitute the Trust Fund, whether
        now owned or hereafter acquired.

       

      The
        Depositor, for the benefit of the Certificateholders, shall, to the extent
        consistent with this Agreement, take such actions as may be necessary to
        ensure
        that, if this Agreement were deemed to create a security interest in the
        Trust
        Fund, 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 Agreement. The Depositor shall arrange for filing any Uniform
        Commercial Code financing and continuation statements in connection with
        any
        security interest granted or assigned to the Trustee for the benefit of the
        Certificateholders.

       

      SECTION
        11.5 Notices.

       

      
        	 	
                (a)

              	
                The
                  Trustee shall use its best efforts to promptly provide notice to
                  each
                  Rating Agency with respect to each of the following of which it
                  has actual
                  knowledge:

              

      

       

      
        	 	
                (i)

              	
                Any
                  material change or amendment to this
                  Agreement;

              

      

       

      
        	 	
                (ii)

              	
                The
                  occurrence of any Event of Default that has not been
                  cured;

              

      

       

      
        	 	
                (iii)

              	
                The
                  resignation or termination of the Master Servicer or the Trustee
                  and the
                  appointment of any successor;

              

      

       

      
        	 	
                (iv)

              	
                The
                  repurchase or substitution of Mortgage Loans pursuant to Section
                  2.3;
                  

              

      

       

      
        	 	
                (v)

              	
                The
                  final payment to Certificateholders;
                  and

              

      

       

      
        	 	
                (vi)

              	
                Any
                  rating action involving the long-term credit rating of the Master
                  Servicer, which notice shall be made by first-class mail within
                  two
                  Business Days after the Trustee gains actual knowledge
                  thereof.

              

      

       

      In
        addition, the Trustee shall promptly furnish to each Rating Agency copies
        of the
        following:

       

      
        	 	
                (i)

              	
                Each
                  report to Certificateholders described in Section
                  4.6;

              

      

       

      
        
          
          

        

        
          112

          
            

          

        

        
          
          

        

         

      

      (ii) Each
        annual statement as to compliance described in Section 3.16; and

       

      (iii) Any
        notice of a purchase of a Mortgage Loan pursuant to Section 2.2, 2.3 or
        3.11.

       

      
        	 	
                (b)

              	
                All
                  directions, demands, authorizations, consents, waivers, communications
                  and
                  notices hereunder shall be in writing and shall be deemed to have
                  been
                  duly given when delivered to by first class mail, facsimile or
                  courier (a)
                  in the case of the Depositor, First Horizon Asset Securities Inc.,
                  4000
                  Horizon Way, Irving, Texas 75063, Attention: Alfred Chang; (b)
                  in the case
                  of the Master Servicer, First Horizon Home Loan Corporation, 4000
                  Horizon
                  Way, Irving, Texas 75063, Attention: Larry P. Cole or such other
                  address
                  as may be hereafter furnished to the Depositor and the Trustee
                  by the
                  Master Servicer in writing; (c) in the case of the Trustee, The
                  Bank of
                  New York, 101 Barclay Street, 4W, New York, New York 10286, Attention:
                  Corporate Trust Administration - First Horizon 2007-3, or such
                  other
                  address as the Trustee may hereafter furnish to the Depositor or
                  Master
                  Servicer, and (d) in the case of the Rating Agencies, the address
                  specified therefor in the definition corresponding to the name
                  of such
                  Rating Agency. Notices to Certificateholders shall be deemed given
                  when
                  mailed, first class postage prepaid, to their respective addresses
                  appearing in the Certificate
                  Register.

              

      

       

      SECTION
        11.6 Severability of Provisions.

       

      If
        any
        one or more of the covenants, agreements, provisions or terms of this Agreement
        shall be for any reason whatsoever held invalid, then such covenants,
        agreements, provisions or terms shall be deemed severable from the remaining
        covenants, agreements, provisions or terms of this Agreement and shall in
        no way
        affect the validity or enforceability of the other provisions of this Agreement
        or of the Certificates or the rights of the Holders thereof.

       

      SECTION
        11.7 Assignment.

       

      Notwithstanding
        anything to the contrary contained herein, except as provided in Section
        6.2,
        this Agreement may not be assigned by the Master Servicer without the prior
        written consent of the Trustee and Depositor.

       

      SECTION
        11.8 Limitation on Rights of Certificateholders.

       

      The
        death
        or incapacity of any Certificateholder shall not operate to terminate this
        Agreement or the trust created hereby, nor entitle such Certificateholder’s
        legal representative or heirs to claim an accounting or to take any action
        or
        commence any proceeding in any court for a petition or winding up of the
        trust
        created hereby, or otherwise affect the rights, obligations and liabilities
        of
        the parties hereto or any of them.

       

      No
        Certificateholder shall have any right to vote (except as provided herein)
        or in
        any manner otherwise control the operation and management of the Trust Fund,
        or
        the obligations of the parties hereto, nor shall anything herein set forth
        or
        contained in the terms of the Certificates be construed so as to constitute
        the
        Certificateholders from time to time as partners or members of an association;
        nor shall any Certificateholder be under any liability to any third party
        by
        reason of any action taken by the parties to this Agreement pursuant to any
        provision hereof.

       

      
        
          
          

        

        
          113

          
            

          

        

        
          
          

        

      

       

      No
        Certificateholder shall have any right by virtue or by availing itself of
        any
        provisions of this Agreement to institute any suit, action or proceeding
        in
        equity or at law upon or under or with respect to this Agreement, unless
        such
        Holder previously shall have given to the Trustee a written notice of an
        Event
        of Default and of the continuance thereof, as herein provided, and unless
        the
        Holders of Certificates evidencing not less than 25% of the Voting Rights
        evidenced by the Certificates shall also have made written request to the
        Trustee to institute such action, suit or proceeding in its own name as Trustee
        hereunder and shall have offered to the Trustee such reasonable indemnity
        as it
        may require against the costs, expenses, and liabilities to be incurred therein
        or thereby, and the Trustee, for 60 days after its receipt of such notice,
        request and offer of indemnity shall have neglected or refused to institute
        any
        such action, suit or proceeding; it being understood and intended, and being
        expressly covenanted by each Certificateholder with every other
        Certificateholder and the Trustee, that no one or more Holders of Certificates
        shall have any right in any manner whatever by virtue or by availing itself
        or
        themselves of any provisions of this Agreement to affect, disturb or prejudice
        the rights of the Holders of any other of the Certificates, or to obtain
        or seek
        to obtain priority over or preference to any other such Holder or to enforce
        any
        right under this Agreement, except in the manner herein provided and for
        the
        common benefit of all Certificateholders. For the protection and enforcement
        of
        the provisions of this Section 11.8, each and every Certificateholder and
        the
        Trustee shall be entitled to such relief as can be given either at law or
        in
        equity.

       

      SECTION
        11.9 Inspection and Audit Rights.

       

      The
        Master Servicer agrees that, on reasonable prior notice, it will permit and
        will
        cause each Subservicer to permit any representative of the Depositor or the
        Trustee during the Master Servicer’s normal business hours, to examine all the
        books of account, records, reports and other papers of the Master Servicer
        relating to the Mortgage Loans, to make copies and extracts therefrom, to
        cause
        such books to be audited by independent certified public accountants selected
        by
        the Depositor or the Trustee and to discuss its affairs, finances and accounts
        relating to the Mortgage Loans with its officers, employees and independent
        public accountants (and by this provision the Master Servicer hereby authorizes
        said accountants to discuss with such representative such affairs, finances
        and
        accounts), all at such reasonable times and as often as may be reasonably
        requested. Any out-of-pocket expense incident to the exercise by the Depositor
        or the Trustee of any right under this Section 11.9 shall be borne by the
        party
        requesting such inspection; all other such expenses shall be borne by the
        Master
        Servicer or the related Subservicer.

       

      SECTION
        11.10 Certificates Nonassessable and Fully Paid.

       

      It
        is the
        intention of the Depositor that Certificateholders shall not be personally
        liable for obligations of the Trust Fund, that the interests in the Trust
        Fund
        represented by the Certificates shall be nonassessable for any reason
        whatsoever, and that the Certificates, upon due authentication thereof by
        the
        Trustee pursuant to this Agreement, are and shall be deemed fully
        paid.

       

      
        
          
          

        

        
          114

          
            

          

        

        
          
          

        

      

       

      SECTION
        11.11 Limitations on Actions; No Proceedings.

       

      
        	 	
                (a)

              	
                Other
                  than pursuant to this Agreement, or in connection with or incidental
                  to
                  the provisions or purposes of this Agreement, the trust created
                  hereunder
                  shall not (i) issue debt or otherwise borrow money, (ii) merge
                  or
                  consolidate with any other entity reorganize, liquidate or transfer
                  all or
                  substantially all of its assets to any other entity, or (iii) otherwise
                  engage in any activity or exercise any power not provided for in
                  this
                  Agreement.

              

      

       

      
        	 	
                (b)

              	
                Notwithstanding
                  any prior termination of this Agreement, the Trustee, the Master
                  Servicer
                  and the Depositor shall not, prior to the date which is one year
                  and one
                  day after the termination of this Agreement, acquiesce, petition
                  or
                  otherwise invoke or cause any Person to invoke the process of any
                  court or
                  government authority for the purpose of commencing or sustaining
                  a case
                  against the Depositor or the Trust Fund under any federal or state
                  bankruptcy, insolvency or other similar law or appointing a receiver,
                  liquidator, assignee, trustee, custodian, sequestrator or other
                  similar
                  official of the Depositor or the Trust Fund or any substantial
                  part of
                  their respective property, or ordering the winding up or liquidation
                  of
                  the affairs of the Depositor or the Trust
                  Fund.

              

      

       

      SECTION
        11.12 Acknowledgment of Seller.

       

      Seller
        hereby acknowledges the provisions of this Agreement, including the obligations
        under Sections 2.1(a), 2.2, 2.3(b) and 8.11 of this Agreement and further
        acknowledges the Depositor’s assignment of its rights and remedies for the
        breach of the representations and warranties made by the Seller under the
        MLPA.

       

      *
        * * * *
        *

      
        
          
          

        

        
          115

          
            

          

        

        
          
          

        

      

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

      
        	 	 	 
	 	
                FIRST
                  HORIZON ASSET SECURITIES INC.,

                as
                  Depositor

              
	 
 	 
 	 
 
	 	By:  	 
	 	
                

                Alfred
                  Chang

                Vice
                  President 

              
	 	
              

      

      
        	 	 	 
	 	
                THE
                  BANK OF NEW YORK,

                not
                  in its individual capacity, but solely as Trustee

              
	 
 	 
 	 
 
	 	By:  	 
	 	
                
                  

                

                Name: 

                
                  

                
Title: 
	 	
                
                  
 

              

        	 	 	 
	 	FIRST
                HORIZON HOME
                LOAN CORPORATION, in its capacity as Master Servicer
	 
 	 
 	 
 
	 	By:  	
              
	 	
                

                Terry
                  L. McCoy

                Executive
                  Vice President

              
	 	
              

        	
                The
                  foregoing agreement is hereby

                acknowledged
                  and accepted as of the

                date
                  first above written:

                 

                FIRST
                  HORIZON HOME LOAN CORPORATION,

                in
                  its capacity as Seller

                 

                 

              	 	 	 
	By:	 	 	 
	
                
                  

                

                Terry
                  L. McCoy

                Executive
                  Vice President

              	 	 	
              
	 	 	 	 
	 	 	 	 
	 	 	 	 
	
                FHASI 2007-3

                Pooling and Servicing Agreement -
                  Signature Page
                  

              	 	 	 

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      SCHEDULE
        I

       

      First
        Horizon Asset Securities Inc.

      Mortgage
        Pass-Through Certificates Series 2007-3

       

      Mortgage
        Loan Schedule

       

      [Available
        Upon Request from Trustee]

      
        
          
          

        

        
          I-I

          
            

          

        

        
          
          

        

      

      SCHEDULE
        II

       

      First
        Horizon Asset Securities Inc.

      Mortgage
        Pass-Through Certificates Series 2007-3

       

      Representations
        and Warranties of the Master Servicer

       

      First
        Horizon Home Loan Corporation (“First Horizon”) hereby makes the representations
        and warranties set forth in this Schedule II to the Depositor and the Trustee,
        as of the Closing Date, or if so specified herein, as of the Cut-off Date.
        Capitalized terms used but not otherwise defined in this Schedule II shall
        have
        the meanings ascribed thereto in the Pooling and Servicing Agreement (the
        “Pooling and Servicing Agreement”) relating to the above-referenced Series,
        among First Horizon, as master servicer, First Horizon Asset Securities Inc.,
        as
        depositor, and The Bank of New York, as trustee. 

       

      (1) First
        Horizon is duly organized as a Kansas corporation and is validly existing
        and in
        good standing under the laws of the State of Kansas and is duly authorized
        and
        qualified to transact any and all business contemplated by the Pooling and
        Servicing Agreement to be conducted by First Horizon in any state in which
        a
        Mortgaged Property is located or is otherwise not required under applicable
        law
        to effect such qualification and, in any event, is in compliance with the
        doing
        business laws of any such state, to the extent necessary to ensure its ability
        to enforce each Mortgage Loan, to service the Mortgage Loans in accordance
        with
        the terms of the Pooling and Servicing Agreement and to perform any of its
        other
        obligations under the Pooling and Servicing Agreement in accordance with
        the
        terms thereof. 

       

      (2) 
        First
        Horizon has the full corporate power and authority to service each Mortgage
        Loan, and to execute, deliver and perform, and to enter into and consummate
        the
        transactions contemplated by the Pooling and Servicing Agreement and has
        duly
        authorized by all necessary corporate action on the part of First Horizon
        the
        execution, delivery and performance of the Pooling and Servicing Agreement;
        and
        the Pooling and Servicing Agreement, assuming the due authorization, execution
        and delivery thereof by the other parties thereto, constitutes a legal, valid
        and binding obligation of First Horizon, enforceable against First Horizon
        in
        accordance with its terms, except that (a) the enforceability thereof may
        be
        limited by bankruptcy, insolvency, moratorium, receivership and other similar
        laws relating to creditors’ rights generally and (b) the remedy of specific
        performance and injunctive and other forms of equitable relief may be subject
        to
        equitable defenses and to the discretion of the court before which any
        proceeding therefor may be brought. 

       

      (3) The
        execution and delivery of the Pooling and Servicing Agreement by First Horizon,
        the servicing of the Mortgage Loans by First Horizon under the Pooling and
        Servicing Agreement, the consummation of any other of the transactions
        contemplated by the Pooling and Servicing Agreement, and the fulfillment
        of or
        compliance with the terms thereof are in the ordinary course of business
        of
        First Horizon and will not (A) result in a material breach of any term or
        provision of the charter or by-laws of First Horizon or (B) materially conflict
        with, result in a material breach, violation or acceleration of, or result
        in a
        material default under, the terms of any other material agreement or instrument
        to which First Horizon is a party or by which it may be bound, or (C) constitute
        a material violation of any statute, order or regulation applicable to First
        Horizon of any court, regulatory body, administrative agency or governmental
        body having jurisdiction over First Horizon; and First Horizon is not in
        breach
        or violation of any material indenture or other material agreement or
        instrument, or in violation of any statute, order or regulation of any court,
        regulatory body, administrative agency or governmental body having jurisdiction
        over it which breach or violation may materially impair First Horizon’s ability
        to perform or meet any of its obligations under the Pooling and Servicing
        Agreement. 

       

      
        
          
          

        

        
          II-1

          
            

          

        

        
          
          

        

      

       

      (4) No
        litigation is pending or, to the best of First Horizon’s knowledge, threatened
        against First Horizon that would prohibit the execution or delivery of, or
        performance under, the Pooling and Servicing Agreement by First Horizon.
        

       

      (5) First
        Horizon is a member of MERS in good standing, and will comply in all material
        respects with the rules and procedures of MERS in connection with the servicing
        of the MERS Mortgage Loans for as along as such Mortgage Loans are registered
        with MERS.

       

      
        
          
          

        

        
          II-2

          
            

          

        

        
          
          

        

      

    

    SCHEDULE
      III

     

    First
      Horizon Asset Securities Inc.

    Mortgage
      Pass-Through Certificates Series 2007-3

     

    Form
      of Monthly Master Servicer Report

     

    [Begins
      on Next Page]

     

    
      
        
        

      

      
        III-1

        
          

        

      

      
        
        

      

    

    EXHIBIT
      A-1

     

    [FORM
      OF
      SENIOR CERTIFICATE

     

    OTHER
      THAN THE CLASS A-PO CERTIFICATES]

     

    UNLESS
      THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
      TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE ISSUER OR ITS AGENT FOR
      REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE 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.

     

    SOLELY
      FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A “REGULAR INTEREST”
IN A “REAL ESTATE MORTGAGE INVESTMENT CONDUIT,” AS THOSE TERMS ARE DEFINED,
      RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF 1986,
      AS
      AMENDED (THE “CODE”).

     

    [In
      the
      case of an ERISA Restricted Yield Supplemented Certificate the following legend
      shall appear:

     

    NEITHER
      THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED UNLESS THE
      TRANSFEREE REPRESENTS IN WRITING TO THE TRUSTEE THAT SUCH
      TRANSFEREE IS NEITHER A PLAN NOR A PERSON ACTING ON BEHALF OF ANY SUCH PLAN
      OR
      USING THE ASSETS OF ANY SUCH PLAN TO EFFECT SUCH TRANSFER, OR THAT THE
      ACQUISITION AND HOLDING OF THE ERISA-RESTRICTED YIELD SUPPLEMENTED CERTIFICATE
      ARE ELIGIBLE FOR EXEMPTIVE RELIEF UNDER PROHIBITED TRANSACTION CLASS EXEMPTION
      (“PTCE”) 84-14, PTCE 90-1, PTCE 91-38, PTCE 95-60 OR PTCE 96-23.
      SUCH
      REPRESENTATION SHALL BE DEEMED TO HAVE BEEN MADE TO THE TRUSTEE BY THE
      TRANSFEREE’S ACCEPTANCE OF A CERTIFICATE OF THIS CLASS AND BY A BENEFICIAL
      OWNER’S ACCEPTANCE OF ITS INTEREST IN A CERTIFICATE OF THIS CLASS.
      NOTWITHSTANDING ANYTHING ELSE TO THE CONTRARY HEREIN, ANY PURPORTED TRANSFER
      OF
      THIS CERTIFICATE TO OR ON BEHALF OF AN EMPLOYEE BENEFIT PLAN SUBJECT TO ERISA
      OR
      TO THE CODE WITHOUT THE WRITTEN REPRESENTATION AS DESCRIBED ABOVE SHALL BE
      VOID
      AND OF NO EFFECT.]

     

    
      
        
        

      

      
        A-I-1

        
          

        

      

      
        
        

      

    

    
      	
              Certificate
                No.

            	 	:
	
              Cut-off
                Date

            	 	:
	
              First
                Distribution Date

            	 	:
	
              Initial
                Certificate Balance of this Certificate (“Denominations”)

            	 	
               

              : 
                $

            
	
              Initial
                Certificate 

              Balances
                of all 

              Certificate
                of this 

              Class

            	 	
              : 
                $

            
	
              CUSIP

            	 	: 

    

     

    First
      Horizon Mortgage Pass-Through Trust 2007-3

    Mortgage
      Pass-Through Certificates, Series 2007-3

    Class
      [________]

     

    evidencing
      a percentage interest in the distributions allocable to the Certificates of
      the
      above-referenced Class with respect to a Trust Fund consisting primarily of
      one
      or more pools of conventional mortgage loans (the “Mortgage Loans”) secured by
      first liens on one- to four-family residential properties.

     

    First
      Horizon Asset Securities Inc., as Depositor

     

    [Principal
      in respect of this Certificate is distributable monthly as set forth herein.
      Accordingly, the Certificate Balance at any time may be less than the
      Certificate Balance as set forth herein.] This Certificate does not evidence
      an
      obligation of, or an interest in, and is not guaranteed by the Depositor, the
      Master Servicer or the Trustee referred to below or any of their respective
      affiliates. Neither this Certificate nor the Mortgage Loans are guaranteed
      or
      insured by any governmental agency or instrumentality.

     

    This
      certifies that __________________ is the registered owner of the Percentage
      Interest evidenced by this Certificate (obtained by dividing the denomination
      of
      this Certificate by the aggregate Initial Certificate Balances of all
      Certificates of the Class to which this Certificate belongs) in certain monthly
      distributions with respect to a Trust Fund consisting primarily of the Mortgage
      Loans deposited by First Horizon Asset Securities Inc. (the “Depositor”). The
      Trust Fund was created pursuant to a Pooling and Servicing Agreement dated
      as of
      the Cut-off Date specified above (the “Agreement”) among the Depositor, First
      Horizon Home Loan Corporation, as master servicer (the “Master Servicer”), and
      The Bank of New York, as trustee (the “Trustee”). To the extent not defined
      herein, the capitalized terms used herein have the meanings assigned in the
      Agreement. This Certificate is issued under and is subject to the terms,
      provisions and conditions of the Agreement, to which Agreement the Holder of
      this Certificate by virtue of the acceptance hereof assents and by which such
      Holder is bound.

     

    
      
        
        

      

      
        A-I-2

        
          

        

      

      
        
        

      

    

     

    Reference
      is hereby made to the further provisions of this Certificate set forth on the
      reverse hereof, which further provisions shall for all purposes have the same
      effect as if set forth at this place.

     

    This
      Certificate shall not be entitled to any benefit under the Agreement or be
      valid
      for any purpose unless manually countersigned by an authorized signatory of
      the
      Trustee.

     

    
      
        
        

      

      
        A-I-3

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
      executed.

     

    Dated:
      May __, 2007

    
      	 	 	 
	 	
              THE
                BANK OF NEW YORK, 
                not
                  in its individual capacity, but solely as Trustee

              

            
	 
 	 
 	 
 
	
            	By:  	 
	 	
              

              Authorized
                Signatory of 

              THE
                BANK OF NEW YORK

              not
                in its individual capacity,

              but
                solely as Trustee

            

    

     

    
      	 	 	 	 	 
	 Countersigned:	 	 	 
	 	 	 	 	 
	 By   	 	 	 	
            
	 	
              

              Authorized
                Signatory of 

            	 	 	
            
	 	THE BANK OF NEW YORK, 
              not
                in its individual capacity,

              
                but
                  solely as Trustee

              

            	 	 	
            

    

    

    
      
        
        

      

      
        A-I-4

        
          

        

      

      
        
        

      

    

    EXHIBIT
      A-2

     

    [FORM
      OF
      SENIOR CERTIFICATE

     

    [CLASS
      A-PO CERTIFICATE]

     

    SOLELY
      FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A “REGULAR INTEREST”
IN A “REAL ESTATE MORTGAGE INVESTMENT CONDUIT,” AS THOSE TERMS ARE DEFINED,
      RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF 1986,
      AS
      AMENDED (THE “CODE”).

     

    NEITHER
      THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED UNLESS THE
      TRANSFEREE REPRESENTS TO THE TRUSTEE THAT SUCH TRANSFEREE IS NOT AN EMPLOYEE
      BENEFIT PLAN SUBJECT TO SECTION 406 OF THE EMPLOYEE RETIREMENT INCOME SECURITY
      ACT OF 1974, AS AMENDED (“ERISA”), OR A PLAN SUBJECT TO SECTION 4975 OF THE
      CODE, OR, IF THE CERTIFICATE HAS BEEN SUBJECT TO AN ERISA-QUALIFYING
      UNDERWRITING, A REPRESENTATION IN ACCORDANCE WITH THE PROVISIONS OF THE
      AGREEMENT REFERRED TO HEREIN, OR DELIVERS TO THE TRUSTEE AN OPINION OF COUNSEL
      IN ACCORDANCE WITH THE PROVISIONS OF THE AGREEMENT REFERRED TO HEREIN. SUCH
      REPRESENTATION SHALL BE DEEMED TO HAVE BEEN MADE TO THE TRUSTEE BY THE
      TRANSFEREE’S ACCEPTANCE OF A CERTIFICATE OF THIS CLASS AND BY A BENEFICIAL
      OWNER’S ACCEPTANCE OF ITS INTEREST IN A CERTIFICATE OF THIS CLASS.

     

    THIS
      CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT
      OF
      1933, AS AMENDED (THE “SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY STATE OF
      THE UNITED STATES (“BLUE SKY LAWS”), AND SUCH CERTIFICATE MAY NOT BE OFFERED,
      RESOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT (A) TO A PERSON WHOM THE SELLER
      REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF
      RULE 144A UNDER THE SECURITIES ACT IN A TRANSACTION MEETING THE REQUIREMENTS
      OF
      RULE 144A, (B) PURSUANT TO AN EXEMPTION FROM REGISTRATION PROVIDED BY RULE
      144
      UNDER THE SECURITIES ACT (IF AVAILABLE) OR (C) TO AN INSTITUTIONAL ACCREDITED
      INVESTOR AS DEFINED IN RULE 501(a)(1), (2), (3) OR (7) OF REGULATION D UNDER
      THE
      SECURITIES ACT IN A TRANSACTION EXEMPT FROM THE REGISTRATION REQUIREMENTS OF
      THE
      SECURITIES ACT, IN EACH CASE IN ACCORDANCE WITH ANY APPLICABLE BLUE SKY LAWS.
      NO
      REPRESENTATION IS MADE AS TO THE AVAILABILITY OF THE EXEMPTION PROVIDED BY
      RULE
      144 FOR RESALES OF THIS CERTIFICATE. 

     

    THIS
      CLASS A-PO CERTIFICATE SHALL NOT BE ENTITLED TO ANY PAYMENTS IN RESPECT OF
      INTEREST.

     

    
      
        
        

      

      
        A-I-5

        
          

        

      

      
        
        

      

    

     

    
      	
              Certificate
                No.

            	 	:
	
              Cut-off
                Date

            	 	: 
	
              First
                Distribution Date

            	 	: 
	
              Initial
                Certificate Balance of this Certificate (“Denominations”)

            	 	
               

              : 
                $

            
	
              Initial
                Certificate 

              Balances
                of all 

              Certificate
                of this 

              Class

            	 	
              : 
                $

            
	
              CUSIP

            	 	:

    

    

    First
      Horizon Mortgage Pass-Through Trust 2007-3

    Mortgage
      Pass-Through Certificates, Series 2007-3

    Class
      A-PO

     

    evidencing
      a percentage interest in the distributions allocable to the Certificates of
      the
      above-referenced Class with respect to a Trust Fund consisting primarily of
      one
      or more pools of conventional mortgage loans (the “Mortgage Loans”) secured by
      first liens on one- to four-family residential properties.

     

    First
      Horizon Asset Securities Inc., as Depositor

     

    Principal
      in respect of this Certificate is distributable monthly as set forth herein.
      Accordingly, the Certificate Balance at any time may be less than the
      Certificate Balance as set forth herein. This Certificate does not evidence
      an
      obligation of, or an interest in, and is not guaranteed by the Depositor, the
      Master Servicer or the Trustee referred to below or any of their respective
      affiliates. Neither this Certificate nor the Mortgage Loans are guaranteed
      or
      insured by any governmental agency or instrumentality.

     

    This
      certifies that __________________ is the registered owner of the Percentage
      Interest evidenced by this Certificate (obtained by dividing the denomination
      of
      this Certificate by the aggregate Initial Certificate Balances of all
      Certificates of the Class to which this Certificate belongs) in certain monthly
      distributions with respect to a Trust Fund consisting primarily of the Mortgage
      Loans deposited by First Horizon Asset Securities Inc. (the “Depositor”). The
      Trust Fund was created pursuant to a Pooling and Servicing Agreement dated
      as of
      the Cut-off Date specified above (the “Agreement”) among the Depositor, First
      Horizon Home Loan Corporation, as master servicer (the “Master Servicer”), and
      The Bank of New York, as trustee (the “Trustee”). To the extent not defined
      herein, the capitalized terms used herein have the meanings assigned in the
      Agreement. This Certificate is issued under and is subject to the terms,
      provisions and conditions of the Agreement, to which Agreement the Holder of
      this Certificate by virtue of the acceptance hereof assents and by which such
      Holder is bound.

     

    
      
        
        

      

      
        A-I-6

        
          

        

      

      
        
        

      

    

     

    Reference
      is hereby made to the further provisions of this Certificate set forth on the
      reverse hereof, which further provisions shall for all purposes have the same
      effect as if set forth at this place.

     

    This
      Certificate shall not be entitled to any benefit under the Agreement or be
      valid
      for any purpose unless manually countersigned by an authorized signatory of
      the
      Trustee.

     

    
      
        
        

      

      
        A-I-7

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
      executed.

     

    Dated:
      May __, 2007

    
      
        	 	 	 
	 	
                THE
                  BANK OF NEW YORK, 
                  not
                    in its individual capacity, but solely as Trustee

                

              
	 
 	 
 	 
 
	
              	By:  	 
	 	
                

                Authorized
                  Signatory of 

                THE
                  BANK OF NEW YORK

                not
                  in its individual capacity,

                but
                  solely as Trustee

              

      

       

      
        	 	 	 	 	 
	 Countersigned:	 	 	 
	 	 	 	 	 
	 By   	 	 	 	
              
	 	
                

                Authorized
                  Signatory of 

              	 	 	
              
	 	THE BANK OF NEW YORK, 
                not
                  in its individual capacity,

                
                  but
                    solely as Trustee

                

              	 	 	
              

      

       

      
        
          
          

        

        
          A-I-8

          
            

          

        

        
          
          

        

         

      

    

    EXHIBIT
      B

     

    [FORM
      OF
      SUBORDINATED CERTIFICATE]

     

    [UNLESS
      THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
      TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE ISSUER OR ITS AGENT FOR
      REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE 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.]

     

    SOLELY
      FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A “REGULAR INTEREST”
IN A “REAL ESTATE MORTGAGE INVESTMENT CONDUIT,” AS THOSE TERMS ARE DEFINED,
      RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF 1986,
      AS
      AMENDED (THE “CODE”).

     

    THIS
      CERTIFICATE IS SUBORDINATED IN RIGHT OF PAYMENT TO CERTAIN CERTIFICATES AS
      DESCRIBED IN THE AGREEMENT REFERRED TO HEREIN.

     

    [THIS
      CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT
      OF
      1933, AS AMENDED (THE “SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY STATE OF
      THE UNITED STATES (“BLUE SKY LAWS”), AND SUCH CERTIFICATE MAY NOT BE OFFERED,
      RESOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT (A) TO A PERSON WHOM THE SELLER
      REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF
      RULE 144A UNDER THE SECURITIES ACT IN A TRANSACTION MEETING THE REQUIREMENTS
      OF
      RULE 144A, (B) PURSUANT TO AN EXEMPTION FROM REGISTRATION PROVIDED BY RULE
      144
      UNDER THE SECURITIES ACT (IF AVAILABLE) OR (C) TO AN INSTITUTIONAL ACCREDITED
      INVESTOR AS DEFINED IN RULE 501(a)(1), (2), (3) OR (7) OF REGULATION D UNDER
      THE
      SECURITIES ACT IN A TRANSACTION EXEMPT FROM THE REGISTRATION REQUIREMENTS OF
      THE
      SECURITIES ACT, IN EACH CASE IN ACCORDANCE WITH ANY APPLICABLE BLUE SKY LAWS.
      NO
      REPRESENTATION IS MADE AS TO THE AVAILABILITY OF THE EXEMPTION PROVIDED BY
      RULE
      144 FOR RESALES OF THIS CERTIFICATE.]

     

    
      
        
        

      

      
        B-1

        
          

        

      

      
        
        

      

    

     

    [NEITHER
      THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED UNLESS THE
      TRANSFEREE REPRESENTS TO THE TRUSTEE THAT SUCH TRANSFEREE IS NOT AN EMPLOYEE
      BENEFIT PLAN OR ARRANGEMENT SUBJECT TO THE EMPLOYEE RETIREMENT INCOME SECURITY
      ACT OF 1974, AS AMENDED (“ERISA”), OR A PLAN OR ARRANGEMENT SUBJECT TO SECTION
      4975 OF THE CODE, OR, IF SUCH PURCHASER IS AN INSURANCE COMPANY AND THE
      CERTIFICATE HAS BEEN SUBJECT TO AN ERISA-QUALIFYING UNDERWRITING, A
      REPRESENTATION IN ACCORDANCE WITH THE PROVISIONS OF THE AGREEMENT REFERRED
      TO
      HEREIN, OR DELIVERS TO THE TRUSTEE AN OPINION OF COUNSEL IN ACCORDANCE WITH
      THE
      PROVISIONS OF THE AGREEMENT REFERRED TO HEREIN. SUCH REPRESENTATION SHALL BE
      DEEMED TO HAVE BEEN MADE TO THE TRUSTEE BY THE TRANSFEREE’S ACCEPTANCE OF A
      CERTIFICATE OF THIS CLASS AND BY A BENEFICIAL OWNER’S ACCEPTANCE OF ITS INTEREST
      IN A CERTIFICATE OF THIS CLASS. NOTWITHSTANDING ANYTHING ELSE TO THE CONTRARY
      HEREIN, ANY PURPORTED TRANSFER OF THIS CERTIFICATE TO OR ON BEHALF OF AN
      EMPLOYEE BENEFIT PLAN SUBJECT TO ERISA OR TO THE CODE WITHOUT THE OPINION OF
      COUNSEL SATISFACTORY TO THE TRUSTEE AS DESCRIBED ABOVE SHALL BE VOID AND OF
      NO
      EFFECT.]

     

    
      
        
        

      

      
        B-2

        
          

        

      

      
        
        

      

    

     

    
      	
              Certificate
                No.

            	 	:
	
              Cut-off
                Date

            	 	:
	
              First
                Distribution Date

            	 	:
	
              Initial
                Certificate Balance of this Certificate (“Denominations”)

            	 	
               

              : 
                $

            
	
              Initial
                Certificate 

              Balances
                of all 

              Certificate
                of this 

              Class

            	 	
              : 
                $

            
	
              CUSIP

            	 	: 

    

     

    First
      Horizon Mortgage Pass-Through Trust 2007-3

    Mortgage
      Pass-Through Certificates, Series 2007-3 

    Class
      [___]

     

    evidencing
      a percentage interest in the distributions allocable to the Certificates of
      the
      above-referenced Class with respect to a Trust Fund consisting primarily of
      one
      or more pools of conventional mortgage loans (the “Mortgage Loans”) secured by
      first liens on one- to four-family residential properties.

     

    First
      Horizon Asset Securities Inc., as Depositor

     

    Principal
      in respect of this Certificate is distributable monthly as set forth herein.
      Accordingly, the Certificate Balance at any time may be less than the
      Certificate Balance as set forth herein. This Certificate does not evidence
      an
      obligation of, or an interest in, and is not guaranteed by the Depositor, the
      Master Servicer or the Trustee referred to below or any of their respective
      affiliates. Neither this Certificate nor the Mortgage Loans are guaranteed
      or
      insured by any governmental agency or instrumentality.

     

    This
      certifies that ___________ is the registered owner of the Percentage Interest
      evidenced by this Certificate (obtained by dividing the denomination of this
      Certificate by the aggregate Initial Certificate Balances of the denominations
      of all Certificates of the Class to which this Certificate belongs) in certain
      monthly distributions with respect to a Trust Fund consisting primarily of
      the
      Mortgage Loans deposited by First Horizon Asset Securities Inc. (the
“Depositor”). The Trust Fund was created pursuant to a Pooling and Servicing
      Agreement dated as of the Cut-off Date specified above (the “Agreement”) among
      the Depositor, First Horizon Home Loan Corporation, as master servicer (the
      “Master Servicer”), and The Bank of New York, as trustee (the “Trustee”). To the
      extent not defined herein, the capitalized terms used herein have the meanings
      assigned in the Agreement. This Certificate is issued under and is subject
      to
      the terms, provisions and conditions of the Agreement, to which Agreement the
      Holder of this Certificate by virtue of the acceptance hereof assents and by
      which such Holder is bound.

     

    
      
        
        

      

      
        B-3

        
          

        

      

      
        
        

      

    

     

    [No
      transfer of a Certificate of this Class shall be made unless such transfer
      is
      made pursuant to an effective registration statement under the Securities Act
      and any applicable state securities laws or is exempt from the registration
      requirements under said Act and such laws. In the event that a transfer is
      to be
      made in reliance upon an exemption from the Securities Act and such laws, in
      order to assure compliance with the Securities Act and such laws, the
      Certificateholder desiring to effect such transfer and such Certificateholder’s
      prospective transferee shall each certify to the Trustee in writing the facts
      surrounding the transfer. In the event that such a transfer is to be made within
      two years from the date of the initial issuance of Certificates pursuant hereto,
      there shall also be delivered (except in the case of a transfer pursuant to
      Rule
      144A of the Securities Act) to the Trustee an Opinion of Counsel that such
      transfer may be made pursuant to an exemption from the Securities Act and such
      state securities laws, which Opinion of Counsel shall not be obtained at the
      expense of the Trustee, the Seller, the Master Servicer or the Depositor. The
      Holder hereof desiring to effect such transfer shall, and does hereby agree
      to,
      indemnify the Trustee and the Depositor against any liability that may result
      if
      the transfer is not so exempt or is not made in accordance with such federal
      and
      state laws.]

     

    [No
      transfer of a Certificate of this Class shall be made unless the Trustee shall
      have received either (i) a representation [letter] from the transferee of such
      Certificate, acceptable to and in form and substance satisfactory to the
      Trustee, to the effect that such transferee is not an employee benefit plan
      or
      arrangement subject to Section 406 of ERISA or Section 4975 of the Code, nor
      a
      person acting on behalf of any such plan, which representation letter shall
      not
      be an expense of the Trustee , the Depositor or the Master Servicer, (ii) if
      the
      purchaser is an insurance company and the certificate has been subject to an
      ERISA-Qualifying Underwriting, a representation that the purchaser is an
      insurance company which is purchasing such Certificates with funds contained
      in
      an “insurance company general account” (as such term is defined in Section V(e)
      of Prohibited Transaction Class Exemption 95-60 (“PTCE 95-60”)) and that the
      purchase and holding of such Certificates are covered under Sections I and
      III
      of PTCE 95-60 or (iii) in the case of any such Certificate presented for
      registration in the name of an employee benefit plan subject to ERISA or Section
      4975 of the Code (or comparable provisions of any subsequent enactments), or
      a
      trustee of any such plan or any other person acting on behalf of any such plan,
      an Opinion of Counsel satisfactory to the Trustee to the effect that the
      purchase or holding of such Certificate will not result in prohibited
      transactions under Section 406 of ERISA and Section 4975 of the Code and will
      not subject the Trustee, the Depositor or the Master Servicer to any obligation
      in addition to those undertaken in the Agreement, which Opinion of Counsel
      shall
      not be an expense of the Trustee, the Depositor or the Master Servicer. [Such
      representation shall be deemed to have been made to the Trustee by the
      Transferee’s acceptance of a Certificate of this Class and by a beneficial
      owner’s acceptance of its interest in a Certificate of this Class.]
      Notwithstanding anything else to the contrary herein, any purported transfer
      of
      a Certificate of this Class to or on behalf of an employee benefit plan subject
      to ERISA or to the Code without the opinion of counsel satisfactory to the
      Trustee as described above shall be void and of no effect.]Reference is hereby
      made to the further provisions of this Certificate set forth on the reverse
      hereof, which further provisions shall for all purposes have the same effect
      as
      if set forth at this place.

     

    
      
        
        

      

      
        B-4

        
          

        

      

      
        
        

      

    

     

    Reference
      is hereby made to the further provisions of this Certificate set forth on the
      reverse hereof, which further provisions shall for all purposes have the same
      effect as if set forth at this place.

     

    This
      Certificate shall not be entitled to any benefit under the Agreement or be
      valid
      for any purpose unless manually countersigned by an authorized signatory of
      the
      Trustee.

     

    IN
      WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
      executed.

     

    Dated:
      May __, 2007

    
      
        	 	 	 
	 	
                THE
                  BANK OF NEW YORK, 
                  not
                    in its individual capacity, but solely as Trustee

                

              
	 
 	 
 	 
 
	
              	By:  	 
	 	
                

                Authorized
                  Signatory of 

                THE
                  BANK OF NEW YORK

                not
                  in its individual capacity,

                but
                  solely as Trustee

              

      

       

      
        	 	 	 	 	 
	 Countersigned:	 	 	 
	 	 	 	 	 
	 By   	 	 	 	
              
	 	
                

                Authorized
                  Signatory of 

              	 	 	
              
	 	THE BANK OF NEW YORK, 
                not
                  in its individual capacity,

                
                  but
                    solely as Trustee

                

              	 	 	
              

      

    

     

    
      
        
        

      

      
        B-5

        
          

        

      

      
        
        

      

       

    

    EXHIBIT
      C

     

    [FORM
      OF
      RESIDUAL CERTIFICATE]

     

    SOLELY
      FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS ONE OR MORE
      “RESIDUAL INTERESTS” IN A “REAL ESTATE MORTGAGE INVESTMENT CONDUIT,” AS THOSE
      TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL
      REVENUE CODE OF 1986, AS AMENDED (THE “CODE”).

     

    NEITHER
      THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED UNLESS THE PROPOSED
      TRANSFEREE DELIVERS TO THE TRUSTEE A TRANSFER AFFIDAVIT IN ACCORDANCE WITH
      THE
      PROVISIONS OF THE AGREEMENT REFERRED TO HEREIN.

     

    [THIS
      CERTIFICATE REPRESENTS THE “TAX MATTERS PERSON RESIDUAL INTEREST” ISSUED UNDER
      THE POOLING AND SERVICING AGREEMENT REFERRED TO BELOW AND MAY NOT BE TRANSFERRED
      TO ANY PERSON EXCEPT IN CONNECTION WITH THE ASSUMPTION BY THE TRANSFEREE OF
      THE
      DUTIES OF THE SERVICER UNDER SUCH AGREEMENT.]

     

    NEITHER
      THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED UNLESS THE
      TRANSFEREE REPRESENTS TO THE TRUSTEE THAT SUCH TRANSFEREE IS NOT AN EMPLOYEE
      BENEFIT PLAN OR ARRANGEMENT SUBJECT TO THE EMPLOYEE RETIREMENT INCOME SECURITY
      ACT OF 1974, AS AMENDED (“ERISA”), OR A PLAN OR ARRANGEMENT SUBJECT TO SECTION
      4975 OF THE CODE, OR, IF SUCH PURCHASER IS AN INSURANCE COMPANY, A
      REPRESENTATION IN ACCORDANCE WITH THE PROVISIONS OF THE AGREEMENT REFERRED
      TO
      HEREIN, OR DELIVERS TO THE TRUSTEE AN OPINION OF COUNSEL IN ACCORDANCE WITH
      THE
      PROVISIONS OF THE AGREEMENT REFERRED TO HEREIN. SUCH REPRESENTATION SHALL BE
      DEEMED TO HAVE BEEN MADE TO THE TRUSTEE BY THE TRANSFEREE’S ACCEPTANCE OF A
      CERTIFICATE OF THIS CLASS AND BY A BENEFICIAL OWNER’S ACCEPTANCE OF ITS INTEREST
      IN A CERTIFICATE OF THIS CLASS. NOTWITHSTANDING ANYTHING ELSE TO THE CONTRARY
      HEREIN, ANY PURPORTED TRANSFER OF THIS CERTIFICATE TO OR ON BEHALF OF AN
      EMPLOYEE BENEFIT PLAN SUBJECT TO ERISA OR TO THE CODE WITHOUT THE OPINION OF
      COUNSEL SATISFACTORY TO THE TRUSTEE AS DESCRIBED ABOVE SHALL BE VOID AND OF
      NO
      EFFECT.

     

    
      
        
        

      

      
        C-1

        
          

        

      

      
        
        

      

    

     

    
      	
              Certificate
                No.

            	 	: 
	
              Cut-off
                Date

            	 	: 
	
              First
                Distribution Date

            	 	: 
	
              Initial
                Certificate Balance of this Certificate (“Denominations”)

            	 	
               

              : 
                $

            
	
              Initial
                Certificate 

              Balances
                of all 

              Certificate
                of this 

              Class

            	 	
              : 
                $

            
	
              CUSIP 

            	 	:

    

     

    First
      Horizon Mortgage Pass-Through Trust 2007-3

    Mortgage
      Pass-Through Certificates, Series 2007-3

     

    evidencing
      the distributions allocable to the [Class A-R] Certificates with respect to
      a
      Trust Fund consisting primarily of one or more pools of conventional mortgage
      loans (the “Mortgage Loans”) secured by first liens on one- to four-family
      residential properties.

     

    First
      Horizon Asset Securities Inc., as Depositor

     

    Principal
      in respect of this Certificate is distributable monthly as set forth herein.
      Accordingly, the Certificate Balance at any time may be less than the
      Certificate Balance as set forth herein. This Certificate does not evidence
      an
      obligation of, or an interest in, and is not guaranteed by the Depositor, the
      Master Servicer or the Trustee referred to below or any of their respective
      affiliates. Neither this Certificate nor the Mortgage Loans are guaranteed
      or
      insured by any governmental agency or instrumentality.

     

    This
      certifies that _________________ is the registered owner of the Percentage
      Interest (obtained by dividing the denomination of this Certificate by the
      aggregate Initial Certificate Balances of the denominations of all Certificates
      of the Class to which this Certificate belongs) in certain monthly distributions
      with respect to a Trust Fund consisting of the Mortgage Loans deposited by
      First
      Horizon Asset Securities Inc. (the “Depositor”). The Trust Fund was created
      pursuant to a Pooling and Servicing Agreement dated as of the Cut-off Date
      specified above (the “Agreement”) among the Depositor, First Horizon Home Loan
      Corporation, as master servicer (the “Master Servicer”), and The Bank of New
      York, as trustee (the “Trustee”). To the extent not defined herein, the
      capitalized terms used herein have the meanings assigned in the Agreement.
      This
      Certificate is issued under and is subject to the terms, provisions and
      conditions of the Agreement, to which Agreement the Holder of this Certificate
      by virtue of the acceptance hereof assents and by which such Holder is
      bound.

     

    
      
        
        

      

      
        C-2

        
          

        

      

      
        
        

      

    

     

    Any
      distribution of the proceeds of any remaining assets of the Trust Fund will
      be
      made only upon presentment and surrender of this [Class A-R] Certificate at
      the
      Corporate Trust Office or the office or agency maintained by the Trustee in
      New
      York, New York.

     

    No
      transfer of a [Class A-R] Certificate shall be made unless the Trustee shall
      have received either (i) a representation [letter] from the transferee of such
      Certificate, acceptable to and in form and substance satisfactory to the
      Trustee, to the effect that such transferee is not an employee benefit plan
      or
      arrangement subject to Section 406 of ERISA or Section 4975 of the Code, nor
      a
      person acting on behalf of any such plan, which representation letter shall
      not
      be an expense of the Trustee, the Depositor or the Master Servicer, (ii) if
      the
      purchaser is an insurance company, a representation that the purchaser is an
      insurance company which is purchasing such Certificate with funds contained
      in
      an “insurance company general account” (as such term is defined in Section V(e)
      of Prohibited Transaction Class Exemption 95-60 (“PTCE 95-60”)) and that the
      purchase and holding of such Certificate are covered under Sections I and III
      of
      PTCE 95-60 or (iii) in the case of any such Certificate presented for
      registration in the name of an employee benefit plan subject to ERISA or Section
      4975 of the Code (or comparable provisions of any subsequent enactments), or
      a
      trustee of any such plan or any other person acting on behalf of any such plan,
      an Opinion of Counsel satisfactory to the Trustee to the effect that the
      purchase or holding of such Class A-R Certificate will not result in prohibited
      transactions under Section 406 of ERISA and Section 4975 of the Code and will
      not subject the Trustee, the Depositor and the Master Servicer to any obligation
      in addition to those undertaken in the Agreement, which Opinion of Counsel
      shall
      not be an expense of the Trustee, the Depositor or the Master Servicer. [Such
      representation shall be deemed to have been made to the Trustee by the
      Transferee’s acceptance of this Class A-R Certificate and by a beneficial
      owner’s acceptance of its interest in such Certificate.] Notwithstanding
      anything else to the contrary herein, any purported transfer of a Class A-R
      Certificate to or on behalf of an employee benefit plan subject to ERISA or
      to
      the Code without the opinion of counsel satisfactory to the Trustee as described
      above shall be void and of no effect.

     

    Each
      Holder of this [Class A-R] Certificate will be deemed to have agreed to be
      bound
      by the restrictions of the Agreement, including but not limited to the
      restrictions that (i) each person holding or acquiring any Ownership Interest
      in
      this [Class A-R] Certificate must be a Permitted Transferee, (ii) no Ownership
      Interest in this [Class A-R] Certificate may be transferred without delivery
      to
      the Trustee of (a) a transfer affidavit of the proposed transferee and (b)
      a
      transfer certificate of the transferor, each of such documents to be in the
      form
      described in the Agreement, (iii) each person holding or acquiring any Ownership
      Interest in this [Class A-R] Certificate must agree to require a transfer
      affidavit and to deliver a transfer certificate to the Trustee as required
      pursuant to the Agreement, (iv) each person holding or acquiring an Ownership
      Interest in this [Class A-R] Certificate must agree not to transfer an Ownership
      Interest in this [Class A-R] Certificate if it has actual knowledge that the
      proposed transferee is not a Permitted Transferee and (v) any attempted or
      purported transfer of any Ownership Interest in this [Class A-R] Certificate
      in
      violation of such restrictions will be absolutely null and void and will vest
      no
      rights in the purported transferee.

    
       

      Reference
        is hereby made to the further provisions of this Certificate set forth on
        the
        reverse hereof, which further provisions shall for all purposes have the
        same
        effect as if set forth at this place.

       

    

    
      
        
        

      

      
        C-3

        
          

        

      

      
        
        

      

    

     

    This
      Certificate shall not be entitled to any benefit under the Agreement or be
      valid
      for any purpose unless manually countersigned by an authorized signatory of
      the
      Trustee.

     

    
      
        
        

      

      
        C-4

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
      executed.

     

    Dated:
      May __, 2007

    
      
        
          	 	 	 
	 	
                  THE
                    BANK OF NEW YORK,
                    not
                      in its individual capacity, but solely as Trustee

                  

                
	 
 	 
 	 
 
	
                	By:  	 
	 	
                  

                  Authorized
                    Signatory of 

                  THE
                    BANK OF NEW YORK

                  not
                    in its individual capacity,

                  but
                    solely as Trustee

                

        

         

        
          	 	 	 	 	 
	 Countersigned:	 	 	 
	 	 	 	 	 
	 By   	 	 	 	
                
	 	
                  

                  Authorized
                    Signatory of 

                	 	 	
                
	 	THE BANK OF NEW YORK, 
                  not
                    in its individual capacity,

                  
                    but
                      solely as Trustee

                  

                	 	 	
                

        

      

    

     

    
      
        
        

      

      
        C-5

        
          

        

      

      
        
        

      

       

    

    EXHIBIT
      D

     

    [Form
      of
      Reverse of Certificates]

     

    First
      Horizon Mortgage Pass-Through Trust 2007-3

    Mortgage
      Pass-Through Certificates

     

    This
      Certificate is one of a duly authorized issue of Certificates designated as
      First Horizon Mortgage Pass-Through Trust 2007-3 Mortgage Pass-Through
      Certificates, of the Series specified on the face hereof (herein collectively
      called the “Certificates”), and representing a beneficial ownership interest in
      the Trust Fund created by the Agreement.

     

    The
      Certificateholder, by its acceptance of this Certificate, agrees that it will
      look solely to the funds on deposit in the Distribution Account for payment
      hereunder and that the Trustee is not liable to the Certificateholders for
      any
      amount payable under this Certificate or the Agreement or, except as expressly
      provided in the Agreement, subject to any liability under the
      Agreement.

     

    This
      Certificate does not purport to summarize the Agreement and reference is made
      to
      the Agreement for the interests, rights and limitations of rights, benefits,
      obligations and duties evidenced thereby, and the rights, duties and immunities
      of the Trustee.

     

    Pursuant
      to the terms of the Agreement, a distribution will be made on the 25th day
      of
      each month or, if such 25th day is not a Business Day, the Business Day
      immediately following (the “Distribution Date”), commencing on the first
      Distribution Date specified on the face hereof, to the Person in whose name
      this
      Certificate is registered at the close of business on the applicable Record
      Date
      in an amount equal to the product of the Percentage Interest evidenced by this
      Certificate and the amount required to be distributed to Holders of Certificates
      of the Class to which this Certificate belongs on such Distribution Date
      pursuant to the Agreement. The Record Date applicable to each Distribution
      Date
      is the last Business Day of the month next preceding the month of such
      Distribution Date.

     

    Distributions
      on this Certificate shall be made by wire transfer of immediately available
      funds to the account of the Holder hereof at a bank or other entity having
      appropriate facilities therefor, if such Certificateholder shall have so
      notified the Trustee in writing at least five Business Days prior to the related
      Record Date and such Certificateholder shall satisfy the conditions to receive
      such form of payment set forth in the Agreement, or, if not, by check mailed
      by
      first class mail to the address of such Certificateholder appearing in the
      Certificate Register. The final distribution on each Certificate will be made
      in
      like manner, but only upon presentment and surrender of such Certificate at
      the
      Corporate Trust Office or such other location specified in the notice to
      Certificateholders of such final distribution.

     

    The
      Agreement permits, with certain exceptions therein provided, the amendment
      thereof and the modification of the rights and obligations of the Trustee and
      the rights of the Certificateholders under the Agreement at any time by the
      Depositor, the Master Servicer and the Trustee with the consent of the Holders
      of Certificates affected by such amendment evidencing the requisite Percentage
      Interest, as provided in the Agreement. Any such consent by the Holder of this
      Certificate shall be conclusive and binding on such Holder and upon all future
      Holders of this Certificate and of any Certificate issued upon the transfer
      hereof or in exchange therefor or in lieu hereof whether or not notation of
      such
      consent is made upon this Certificate. The Agreement also permits the amendment
      thereof, in certain limited circumstances, without the consent of the Holders
      of
      any of the Certificates.

     

    
      
        
        

      

      
        D-1

        
          

        

      

      
        
        

      

       

    

    As
      provided in the Agreement and subject to certain limitations therein set forth,
      the transfer of this Certificate is registrable in the Certificate Register
      of
      the Trustee upon surrender of this Certificate for registration of transfer
      at
      the Corporate Trust Office or the office or agency maintained by the Trustee
      in
      New York, New York, accompanied by a written instrument of transfer in form
      satisfactory to the Trustee and the Certificate Registrar duly executed by
      the
      holder hereof or such holder’s attorney duly authorized in writing, and
      thereupon one or more new Certificates of the same Class in authorized
      denominations and evidencing the same aggregate Percentage Interest in the
      Trust
      Fund will be issued to the designated transferee or transferees.

     

    The
      Certificates are issuable only as registered Certificates without coupons in
      denominations specified in the Agreement. As provided in the Agreement and
      subject to certain limitations therein set forth, Certificates are exchangeable
      for new Certificates of the same Class in authorized denominations and
      evidencing the same aggregate Percentage Interest, as requested by the Holder
      surrendering the same.

     

    No
      service charge will be made for any such registration of transfer or exchange,
      but the Trustee may require payment of a sum sufficient to cover any tax or
      other governmental charge payable in connection therewith.

     

    The
      Depositor, the Master Servicer and the Trustee and any agent of the Depositor
      or
      the Trustee may treat the Person in whose name this Certificate is registered
      as
      the owner hereof for all purposes, and neither the Depositor, the Trustee,
      nor
      any such agent shall be affected by any notice to the contrary.

     

    On
      any
      Distribution Date on which the Pool Principal Balance is less than 10% of the
      Cut-off Date Pool Principal Balance, the Master Servicer will have the option
      to
      repurchase, in whole, from the Trust Fund all remaining Mortgage Loans and
      all
      property acquired in respect of the Mortgage Loans at a purchase price
      determined as provided in the Agreement. In the event that no such optional
      termination occurs, the obligations and responsibilities created by the
      Agreement will terminate upon the later of the maturity or other liquidation
      (or
      any advance with respect thereto) of the last Mortgage Loan remaining in the
      Trust Fund or the disposition of all property in respect thereof and the
      distribution to Certificateholders of all amounts required to be distributed
      pursuant to the Agreement. In no event, however, will the trust created by
      the
      Agreement continue beyond the expiration of 21 years from the death of the
      last
      survivor of the descendants living at the date of the Agreement of a certain
      person named in the Agreement.

     

    Any
      term
      used herein that is defined in the Agreement shall have the meaning assigned
      in
      the Agreement, and nothing herein shall be deemed inconsistent with that
      meaning.

     

    
      
        
        

      

      
        D-2

        
          

        

      

      
        
        

      

    

     

    ASSIGNMENT

     

    FOR
      VALUE
      RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto

     

    ______________________________

    (Please
      insert social security or

    other
      identifying number of assignee)

     

    ________________________________________________________________________

     

    ________________________________________________________________________

    (Please
      print or typewrite name and address

    including
      postal zip code of assignee)

     

    ________________________________________________________________________

    the
      Percentage Interest evidenced by the within Certificate and hereby authorizes
      the transfer of registration of such Percentage Interest to assignee on the
      Certificate Register of the Trust Fund.

     

    I
      (We)
      further direct the Trustee to issue a new Certificate of a like denomination
      and
      Class, to the above named assignee and deliver such Certificate to the following
      address:

     

    ________________________________________________________________________

     

    ________________________________________________________________________

     

    ________________________________________________________________________

     

    Dated: __________________

     

    
      	 	 	 	 
	
            	 	 	
            
	
            	 	 	
              
Signature
              by or on behalf of
              assignor

    

     

    DISTRIBUTION
      INSTRUCTIONS

     

    The
      assignee should include the following for purposes of distribution:

     

    Distributions
      shall be made, by wire transfer or otherwise, in immediately available funds
      to
      ________________________________________, for the account of
      _____________________, account number ___________, or, if mailed by check,
      to
      ___________________________. Applicable statements should be mailed to
      __________________________. 

     

    This
      information is provided by ________________________________________, the
      assignee named above, or _________________, as its agent.

     

    
      
        
        

      

      
        D-3

        
          

        

      

      
        
        

      

       

    

    EXHIBIT
      E

     

    FORM
      OF
      INITIAL CERTIFICATION OF CUSTODIAN

     

    [date]

     

    First
      Horizon Asset Securities Inc. 

    First
      Horizon Home Loan Corporation 

    4000
      Horizon Way 

    Irving,
      Texas 75063

     

    The
      Bank
      of New York 

    101
      Barclay Street, 4W 

    New
      York,
      New York 10286

     

    
      	 	
              Re:

            	
              Custodial
                Agreement dated as of May 30, 2007 by and among The Bank of New York,
                as
                Trustee, First Horizon Home Loan Corporation, as Servicer and First
                Tennessee Bank National Association, as
                Custodian

            

    

     

    Gentlemen:

     

    In
      accordance with Section 2 of the above-captioned Custodial Agreement (the
      "Custodial Agreement"), the undersigned, as Custodian, hereby certifies that,
      as
      to each Mortgage Loan listed in the Mortgage Loan Schedule (other than any
      Mortgage Loan listed in the attached schedule), it has received:

     

    (i)
       the
      original Mortgage Note, endorsed as provided in the following form: “Pay to the
      order of ________, without recourse”; and

     

    (ii)
       a
      duly
      executed assignment, or a copy of such assignment certified by the Seller as
      being a true and complete copy of the assignment, of the Mortgage (which may
      be
      included in a blanket assignment or assignments); provided, however, that it
      has
      received no assignment with respect to any Mortgage for which the related
      Mortgaged Property is located in the Commonwealth of Puerto Rico.

     

    Based
      on
      its review and examination and only as to the foregoing documents, such
      documents appear regular on their face and related to such Mortgage
      Loan.

     

    The
      Custodian has made no independent examination of any documents contained in
      each
      Mortgage File beyond the review specifically required in the Custodial
      Agreement. The Custodian makes no representations as to: (i) the validity,
      legality, sufficiency, enforceability or genuineness of any of the documents
      contained in each Mortgage File of any of the Mortgage Loans identified on
      the
      Mortgage Loan Schedule, or (ii) the collectability, insurability, effectiveness
      or suitability of any such Mortgage Loan. 

     

    
      
        
        

      

      
        E-1

        
          

        

      

      
        
        

      

    

    Capitalized
      words and phrases used herein shall have the respective meanings assigned to
      them in the Custodial Agreement.

    
      	 	 	 
	 	
              FIRST
                TENNESSEE BANK NATIONAL ASSOCIATION,
                
                as
                  Custodian

              

            
	 
 	 
 	 
 
	
            	By:  	
            
	 	
              

            
	 	Name:	
            
	 	Title:	
              
 
	 	 	
              

            
	 	 	 

    

     

    
      
        
        

      

      
        E-2

        
          

        

      

      
        
        

      

       

    

    EXHIBIT
      F

     

    FORM
      OF
      DELAY DELIVERY CERTIFICATION

     

    [date]

     

    First
      Horizon Asset Securities Inc. 

    First
      Horizon Home Loan Corporation 

    4000
      Horizon Way 

    Irving,
      Texas 75063

     

    The
      Bank
      of New York 

    101
      Barclay Street, 4W 

    New
      York,
      New York 10286

     

    
      	 	
              Re:

            	
              Custodial
                Agreement dated as of May 30, 2007 by and among The Bank of New York,
                as
                Trustee, First Horizon Home Loan Corporation, as Servicer, and First
                Tennessee Bank National Association, as
                Custodian

            

    

     

    Ladies
      and Gentlemen:

     

    In
      accordance with Section 3 of the above-captioned Custodial Agreement (the
“Custodial Agreement”), the undersigned, as Custodian, hereby certifies that, as
      to each Delay Delivery Mortgage Loan listed in the Mortgage Loan Schedule (other
      than any Delay Delivery Mortgage Loan listed in the attached schedule), it
      has
      received:

     

    (i) the
      original Mortgage Note, endorsed as provided in the following form: “Pay to the
      order of_______, without recourse”; 

     

    (ii) in
      the
      case of each Mortgage Loan, the original recorded Mortgage, or a copy of such
      Mortgage certified by the Seller as being a true and complete copy of the
      Mortgage, [and in the case of each Mortgage Loan that is a MERS Mortgage Loan,
      the original Mortgage, or a copy of such Mortgage certified by the Seller as
      being a true and complete copy of the Mortgage, noting thereon the presence
      of
      the MIN of the Mortgage Loan and language indicating that the Mortgage Loan
      is a
      MOM Loan if the Mortgage Loan is a MOM Loan, with evidence of recording
      indicated thereon]; and

     

    (iii) in
      the
      case of each Mortgage Loan, a duly executed assignment, or a copy of such
      assignment certified by the Seller as a true and complete copy of the
      assignment, of the Mortgage (which may be included in a blanket assignment
      or
      assignments); provided, however, that it has received no assignment with respect
      to any Mortgage for which the related Mortgage Property is located in the
      Commonwealth of Puerto Rico.

     

    Based
      on
      its review and examination and only as to the foregoing documents, such
      documents appear regular on their face and related to such Delay Delivery
      Mortgage Loan.

     

    
      
        
        

      

      
        F-1

        
          

        

      

      
        
        

      

    

     

    The
      Custodian has made no independent examination of any documents contained in
      each
      Mortgage File beyond the review specifically required in the Custodial
      Agreement. The Custodian makes no representations as to: (i) the validity,
      legality, sufficiency, enforceability or genuineness of any of the documents
      contained in each Mortgage File of any of the Delay Delivery Mortgage Loans
      identified on the Mortgage Loan Schedule, or (ii) the collectability,
      insurability, effectiveness or suitability of any such Delay Delivery Mortgage
      Loan.

     

    Capitalized
      words and phrases used herein shall have the respective meanings assigned to
      them in the above-captioned Custodial Agreement.

     

    
      
        	 	 	 
	 	
                FIRST
                  TENNESSEE BANK NATIONAL ASSOCIATION,
                  
                  as
                    Custodian

                

              
	 
 	 
 	 
 
	
              	By:  	
              
	 	
                

              
	 	Name:	
              
	 	Title:	
                
 
	 	
              	
                

              
	 	 	 

      

       

      
        
          
          

        

        
          F-2

          
            

          

        

        
          
          

        

      

    

    EXHIBIT
      G

     

    FORM
      OF
      SUBSEQUENT CERTIFICATION OF CUSTODIAN

     

    [date]

     

    First
      Horizon Asset Securities Inc. 

    First
      Horizon Home Loan Corporation 

    4000
      Horizon Way 

    Irving,
      Texas 75063

     

    The
      Bank
      of New York 

    101
      Barclay Street, 4W 

    New
      York,
      New York 10286

     

    
      	 	
              Re:

            	
              Custodial
                Agreement dated as of May 30, 2007 by and among The Bank of New York,
                as
                Trustee, First Horizon Home Loan Corporation, as Servicer, and First
                Tennessee Bank National Association, as
                Custodian

            

    

     

    Ladies
      and Gentlemen:

     

    In
      accordance with Section 3 of the above-captioned Custodial Agreement (the
“Custodial Agreement”), the undersigned, as Custodian hereby certifies that as
      to each Mortgage Loan listed in the Mortgage Loan Schedule (other than any
      Mortgage Loan paid in full or listed on the attached exception report) it has
      received, unless otherwise provided in Section 2 of the Custodial
      Agreement:

     

    
      	
            	(A)	
              The
                original Mortgage Note endorsed by manual or facsimile signature
                in blank
                in the following form: “Pay to the order of ____________without recourse,”
                with all intervening endorsements showing a complete chain of endorsements
                from the originator to the Person endorsing the Mortgage Note (each
                such
                endorsement being sufficient to transfer all right, title and interest
                of
                the party so endorsing, as noteholder or assignee thereof, in and
                to that
                Mortgage Note); or

            

    

     

    
      	 	 	
              (B)
                with respect to any Lost Mortgage Note, a lost note affidavit from
                the
                Seller stating that the original Mortgage Note was lost or destroyed,
                together with a copy of such Mortgage
                Note;

            

    

     

    
      	 	
              (ii)

            	
              except
                as provided in Section 2(c) of the Custodial Agreement and for each
                Mortgage Loan that is not a MERS Mortgage Loan, the
                original recorded Mortgage or a copy of such Mortgage certified by
                the
                Seller as being a true and complete copy of the Mortgage, and in
                the case
                of each MERS Mortgage Loan, the original recorded Mortgage, noting
                the
                presence of the MIN of the Mortgage Loans and either language indicating
                that the Mortgage Loan is a MOM Loan if the Mortgage Loan is a MOM
                Loan or
                if the Mortgage Loan was not a MOM Loan at origination, the original
                Mortgage and the assignment thereof to MERS, with evidence of recording
                indicated thereon, or a copy of the Mortgage certified by the Seller
                as
                being a true and complete copy of the Mortgage;

            

    

     

    
      
        
        

      

      
        G-1

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (iii)

            	
              in
                the case of each Mortgage Loan that is not a MERS Mortgage Loan,
                a duly
                executed assignment of the Mortgage, or a copy of such assignment
                certified by the Seller as being a true and complete copy of the
                assignment, in blank (which may be included in a blanket assignment
                or
                assignments), together with, except as provided below, all interim
                recorded assignments, or copies of such interim assignments certified
                by
                the Seller as being true and complete copies of the interim assignments,
                of such Mortgage (each such assignment, when duly and validly completed,
                to be in recordable form and sufficient to effect the assignment
                of and
                transfer to the assignee thereof, under the Mortgage to which the
                assignment relates); provided that, if the related Mortgage has not
                been
                returned from the applicable public recording office, such assignment
                of
                the Mortgage may exclude the information to be provided by the recording
                office;

            

    

     

    
      	 	
              (iv)

            	
              the
                original or copies of each assumption, modification, written assurance
                or
                substitution agreement, if any;

            

    

     

    
      	 	
              (v)

            	
              either
                the original or duplicate original title policy, or a copy of such
                title
                policy certified by the Seller as being a true and complete copy
                of the
                title policy (including all riders thereto), with respect to the
                related
                Mortgaged Property, if available, provided that the title policy
                (including all riders thereto) will be delivered as soon as it becomes
                available, and if the title policy is not available, and to the extent
                required pursuant to the second paragraph below or otherwise in connection
                with the rating of the Certificates, a written commitment or interim
                binder or preliminary report of the title issued by the title insurance
                or
                escrow company with respect to the Mortgaged Property, or in lieu
                thereof,
                an Alternative Title Product or a copy of such Alternative Title
                Product
                certified by the Seller as being a true and complete copy of the
                Alternative Title Product; and

            

    

     

    
      	 	
              (vi)

            	
              in
                the case of a Cooperative Loan, the originals of the following documents
                or instruments:

            

    

     

    
      	 	
              (a)

            	
              The
                Coop Shares, together with a stock power in
                blank;

            

    

     

    
      	 	
              (b)

            	
              The
                executed Security Agreement;

            

    

     

    
      	 	
              (c)

            	
              The
                executed Proprietary Lease;

            

    

     

    
      	 	
              (d)

            	
              The
                executed UCC-1 financing statement with evidence of recording thereon
                which have been filed in all places required to perfect the Seller’s
                interest in the Coop Shares and the Proprietary Lease;
                and

            

    

     

    
      	 	
              (e)

            	
              Executed
                UCC-3 financing statements or their appropriate UCC financing statements
                required by state law, evidencing a complete and unbroken line from
                the
                mortgagee to the Trustee with evidence of recording thereon (or in
                a form
                suitable for recordation).

            

    

     

    
      
        
        

      

      
        G-2

        
          

        

      

      
        
        

      

    

     

    Based
      on
      its review and examination and only as to the foregoing documents, (a) such
      documents appear regular on their face and related to such Mortgage Loan, and
      (b) the information set forth in items (i), (ii), (iii), (iv), (vi) and (xi)
      of
      the definition of the “Mortgage Loan Schedule” in Article I of the Pooling and
      Servicing Agreement accurately reflects information set forth in the Mortgage
      File.

     

    The
      Custodian has made no independent examination of any documents contained in
      each
      Mortgage File beyond the review specifically required in the Custodial
      Agreement. The Custodian makes no representations as to: (i) the validity,
      legality, sufficiency, enforceability or genuineness of any of the documents
      contained in each Mortgage File of any of the Mortgage Loans identified on
      the
      Mortgage Loan Schedule, or (ii) the collectability, insurability, effectiveness
      or suitability of any such Mortgage Loan. Notwithstanding anything herein to
      the
      contrary, the Custodian has made no determination and makes no representations
      as to whether (i) any endorsement is sufficient to transfer all right, title,
      and interest of the party so endorsing, as noteholder or assignee thereof,
      in
      and to that Mortgage Note or (ii) any assignment is in recordable form or
      sufficient to effect the assignment of and transfer to the assignee thereof,
      under the Mortgage to which the assignment relates.

     

    Capitalized
      words and phrases used herein shall have the respective meanings assigned to
      them in the Custodial Agreement.

    
      
        	 	 	 
	 	
                FIRST
                  TENNESSEE BANK NATIONAL ASSOCIATION,
                  
                  as
                    Custodian

                

              
	 
 	 
 	 
 
	
              	By:  	
              
	 	
                

              
	 	Name:	
              
	 	Title:	
                
 
	 	 	
                

              

      

       

      
        
          
          

        

        
          G-3

          
            

          

        

        
          
          

        

      

    

    EXHIBIT
      H

     

    TRANSFER
      AFFIDAVIT

     

    First
      Horizon Mortgage Pass-Through Trust 2007-3

    Mortgage
      Pass-Through Certificates

    Series
      2007-3

     

    
      	STATE OF	)	 
	 	) ss.:	 
	COUNTY OF	)	 

    

     

    The
      undersigned, being first duly sworn, deposes and says as follows:

     

    1. The
      undersigned is an officer of __________, the proposed Transferee of an Ownership
      Interest in a [Class A-R] Certificate (the “Certificate”) issued pursuant to the
      Pooling and Servicing Agreement, (the “Agreement”), relating to the
      above-referenced Series, by and among First Horizon Asset Securities Inc.,
      as
      depositor (the “Depositor”), First Horizon Home Loan Corporation, as master
      servicer, and The Bank of New York, as trustee. Capitalized terms used, but
      not
      defined herein or in Exhibit 1 hereto, shall have the meanings ascribed to
      such
      terms in the Agreement. The Transferee has authorized the undersigned to make
      this affidavit on behalf of the Transferee.

     

    2. The
      Transferee is, as of the date hereof, and will be, as of the date of the
      Transfer, a Permitted Transferee. The Transferee is acquiring its Ownership
      Interest in the Certificate either (i) for its own account or (ii) as nominee,
      trustee or agent for another Person and has attached hereto an affidavit from
      such Person in substantially the same form as this affidavit. The Transferee
      has
      no knowledge that any such affidavit is false. The Transferee does not hold
      REMIC residual interests as nominee to facilitate the clearance and settlement
      of such interests through electronic book-entry changes in accounts of
      participating organizations.

     

    3. The
      Transferee has been advised of, and understands that (i) a tax may be imposed
      on
      Transfers of the Certificate to Persons that are not Permitted Transferees;
      (ii)
      such tax will be imposed on the transferor, or, if such Transfer is through
      an
      agent (which includes a broker, nominee or middleman) for a Person that is
      not a
      Permitted Transferee, on the agent; and (iii) the Person otherwise liable for
      the tax shall be relieved of liability for the tax if the subsequent transferee
      furnished to such Person an affidavit that such subsequent transferee is a
      Permitted Transferee and, at the time of Transfer, such Person does not have
      actual knowledge that the affidavit is false.

     

    4. The
      Transferee has been advised of, and understands that a tax may be imposed on
      a
“pass-through entity” holding the Certificate if at any time during the taxable
      year of the pass-through entity a Person that is not a Permitted Transferee
      is
      the record holder of an interest in such entity. The Transferee understands
      that
      such tax will not be imposed for any period with respect to which the record
      holder furnishes to the pass-through entity an affidavit that such record holder
      is a Permitted Transferee and the pass-through entity does not have actual
      knowledge that such affidavit is false. (For this purpose, a “pass-through
      entity” includes a regulated investment company, a real estate investment trust
      or common trust fund, a partnership, trust or estate, and certain cooperatives
      and, except as may be provided in Treasury Regulations, persons holding
      interests in pass-through entities as a nominee for another
      Person.)

     

    
      
        
        

      

      
        H-1

        
          

        

      

      
        
        

      

       

    

    5. The
      Transferee has reviewed the provisions of Section 5.2(c) of the Agreement
      (attached hereto as Exhibit 2 and incorporated herein by reference) and
      understands the legal consequences of the acquisition of an Ownership Interest
      in the Certificate including, without limitation, the restrictions on subsequent
      Transfers and the provisions regarding voiding the Transfer and mandatory sales.
      The Transferee expressly agrees to be bound by and to abide by the provisions
      of
      Section 5.2(c) of the Agreement and the restrictions noted on the face of the
      Certificate. The Transferee understands and agrees that any breach of any of
      the
      representations included herein shall render the Transfer to the Transferee
      contemplated hereby null and void.

     

    6. The
      Transferee agrees to require a Transfer Affidavit from any Person to whom the
      Transferee attempts to Transfer its Ownership Interest in the Certificate,
      and
      in connection with any Transfer by a Person for whom the Transferee is acting
      as
      nominee, trustee or agent, and the Transferee will not Transfer its Ownership
      Interest or cause any Ownership Interest to be Transferred to any Person that
      the Transferee knows is not a Permitted Transferee. In connection with any
      such
      Transfer by the Transferee, the Transferee agrees to deliver to the Trustee
      a
      certificate substantially in the form set forth as Exhibit I to the Agreement
      (a
“Transferor Certificate”) to the effect that such Transferee has no actual
      knowledge that the Person to which the Transfer is to be made is not a Permitted
      Transferee.

     

    7. The
      Transferee does not have the intention to impede the assessment or collection
      of
      any tax legally required to be paid with respect to the
      Certificate.

     

    8. The
      Transferee’s taxpayer identification number is ______.

     

    9. The
      Transferee is either a U.S. Person as defined in Code Section 7701(a)(30) or
      the
      Transferee has furnished the Transferor a properly completed Internal Revenue
      Service Form W-8ECI.

     

    10. The
      Transferee is aware that the Certificate may represent one or more interests
      in
      a “noneconomic residual interest” within the meaning of Treasury regulations
      promulgated pursuant to the Code and that the transferor of a noneconomic
      residual interest will remain liable for any taxes due with respect to the
      income on such residual interest, unless no significant purpose of the transfer
      was to impede the assessment or collection of tax.

     

    11. The
      Transferee is not an employee benefit plan or arrangement subject to Section
      406
      of ERISA or a plan or arrangement subject to Section 4975 of the Code, nor
      a
      person acting on behalf of any such plan or arrangement, nor using the assets
      of
      any such plan or arrangement to effect such transfer.

     

    12. The
      Transferee has historically paid its debts as they came due and the Transferee
      will continue to pay its debts as they come due in the future; the Transferee
      understands that, as the holder of the Certificate, the Transferee may incur
      tax
      liabilities in excess of any cash flows generated by the Certificate and the
      Transferee intends to pay taxes associated with holding the Certificate as
      they
      become due.

     

    
      
        
        

      

      
        H-2

        
          

        

      

      
        
        

      

    

     

    13. The
      Transferee is a domestic corporation taxable as a regular corporation for U.S.
      federal income tax purposes (a “taxable domestic C corporation”) and is not a
      real estate investment trust, regulated investment company or REMIC. The
      Transferee will not cause income from the Certificate to be attributable, for
      U.S. federal income tax purposes, to a non-U.S. permanent establishment or
      fixed
      base (within the meaning of an applicable income tax treaty) of the Transferee
      or another U.S. taxpayer. At the time of the Transfer, and at the close of
      each
      of the Transferee’s two fiscal years preceding the year of the Transfer, the
      Transferee’s gross assets for financial reporting purposes exceeded $10 million
      (together, the “Asset Requirements”), and the Transferee hereby covenants that
      any subsequent Transfer of its Ownership Interest in the Certificate will be
      to
      another taxable, domestic C corporation satisfying the Asset
      Requirements

     

    IN
      WITNESS WHEREOF, the Transferee has caused this instrument to be executed on
      its
      behalf, pursuant to authority of its Board of Directors, by its duly authorized
      officer and its corporate seal to be hereunto affixed, duly attested, this
      ___
      day of _________, 20__.

     

    
      
        
          	 	 	 
	 	
                  
                    
                      

                    

                  
Print Name of Transferee
	 
 	 
 	 
 
	
                	By:  	
                
	 	
                  

                
	 	Name:	
                
	 	Title:	
                  
 
	 	 	
                  

                

        

         

      

    

    Personally
      appeared before me the above-named ________________, known or proved to me
      to be
      the same person who executed the foregoing instrument and to be the
      _________________ of the Transferee, and acknowledged that he executed the
      same
      as his free act and deed and the free act and deed of the
      Transferee.

     

    Subscribed
      and sworn before me this _____ day of ___________, 20____.

    
       

      
        
          
            	 	 	 
	 	
                    
                      
                        

                      

                    

                    NOTARY
                      PUBLIC

                  
	 
 	 
 	 
 
	
                  	My Commission expires
                    the ___ day
                    of ________________,
                    20___.
	 	
                  	 
	 	 	 

          

           

          
            
              
              

            

            
              H-3

              
                

              

            

            
              
              

            

          

           

        

      

    

    EXHIBIT
      1
      to EXHIBIT H

     

    Certain
      Definitions

     

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

     

    “Permitted
      Transferee”: Any Person other than (i) the United States, any State or political
      subdivision thereof, or any agency or instrumentality of any of the foregoing,
      (ii) a foreign government, International Organization or any agency or
      instrumentality of either of the foregoing, (iii) an organization (except
      certain farmers’ cooperatives described in section 521 of the Code) which is
      exempt from tax imposed by Chapter 1 of the Code (including the tax imposed
      by
      section 511 of the Code on unrelated business taxable income) on any excess
      inclusions (as defined in section 860E(c)(l) of the Code) with respect to any
      Certificate, (iv) rural electric and telephone cooperatives described in section
      1381(a)(2)(C) of the Code, (v) an “electing large partnership” as defined in
      section 775 of the Code, (vi) a Person that is not (a) a citizen or resident
      of
      the United States, (b) a corporation, partnership, or other entity created
      or
      organized in or under the laws of the United States, any state thereof or the
      District of Columbia, (c) an estate whose income from sources without the United
      States is includible in gross income for United States federal income tax
      purposes regardless of its connection with the conduct of a trade or business
      within the United States or (d) a trust if a court within the United States
      is
      able to exercise primary supervision over the administration of the trust and
      one or more United States persons have the authority to control all substantial
      decisions of the trust, unless such Person has furnished the transferor and
      the
      Trustee with a duly completed Internal Revenue Service Form W-8ECI or any
      applicable successor form, and (vii) any other Person so designated by the
      Depositor based upon an Opinion of Counsel that the Transfer of an Ownership
      Interest in a Certificate to such Person may cause the REMIC created pursuant
      to
      the Agreement to fail to qualify as a REMIC at any time that the Certificates
      (as defined in the Agreement) are outstanding; provided, however, that if a
      person is classified as a partnership or a disregarded entity under the Code,
      such person shall only be a Permitted Transferee if all of its beneficial owners
      are described in subclauses (a), (b), (c) or (d) of clause (vi) and the
      governing documents of such person prohibits a transfer of any interest in
      such
      person to any person described in clause (vi). The terms “United States,”
“State” and “International Organization” shall have the meanings set forth in
      section 7701 of the Code or successor provisions. A corporation will not be
      treated as an instrumentality of the United States or of any State or political
      subdivision thereof for these purposes if all of its activities are subject
      to
      tax and, with the exception of the Federal Home Loan Mortgage Corporation,
      a
      majority of its board of directors is not selected by such government unit.
      

     

    “Person”:
      Any individual, corporation, partnership, joint venture, association, bank,
      joint-stock company, trust (including any beneficiary thereof), unincorporated
      organization or government or any agency or political subdivision
      thereof.

     

    “Transfer”:
      Any direct or indirect transfer or sale of any Ownership Interest in a
      Certificate, including the acquisition of a Certificate by the
      Depositor.

     

    
      
        
        

      

      
        H-4

        
          

        

      

      
        
        

      

    

     

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

     

    
      
        
        

      

      
        H-5

        
          

        

      

      
        
        

      

    

    EXHIBIT
      2
      to EXHIBIT H

     

    Section
      5.2(c) of the Agreement

     

    (c)
       Each
      Person who has or who acquires any Ownership Interest in a Residual Certificate
      shall be deemed by the acceptance or acquisition of such Ownership Interest
      to
      have agreed to be bound by the following provisions, and the rights of each
      Person acquiring any Ownership Interest in a Residual Certificate are expressly
      subject to the following provisions: 

     

    (i) Each
      Person holding or acquiring any Ownership Interest in a Residual Certificate
      shall be a Permitted Transferee and shall promptly notify the Trustee of any
      change or impending change in its status as a Permitted Transferee.

     

    (ii) No
      Ownership Interest in a Residual Certificate may be registered on the Closing
      Date or thereafter transferred, and the Trustee shall not register the Transfer
      of any Residual Certificate unless, in addition to the certificates required
      to
      be delivered to the Trustee under subparagraph (b) above, the Trustee shall
      have
      been furnished with an affidavit (a “Transfer Affidavit”) of the initial owner
      or the proposed transferee in the form attached hereto as Exhibit H. The
      Transferee does not hold REMIC residual interests as nominee to facilitate
      the
      clearance and settlement of such interests through electronic book-entry changes
      in accounts of participating organizations. 

     

    (iii) Each
      Person holding or acquiring any Ownership Interest in a Residual Certificate
      shall agree (A) to obtain a Transfer Affidavit from any other Person to whom
      such Person attempts to Transfer its Ownership Interest in a Residual
      Certificate, (B) to obtain a Transfer Affidavit from any Person for whom such
      Person is acting as nominee, trustee or agent in connection with any Transfer
      of
      a Residual Certificate and (C) not to Transfer its Ownership Interest in a
      Residual Certificate or to cause the Transfer of an Ownership Interest in a
      Residual Certificate to any other Person if it has actual knowledge that such
      Person is not a Permitted Transferee. 

     

    (iv) Any
      attempted or purported Transfer of any Ownership Interest in a Residual
      Certificate in violation of the provisions of this Section 5.2(c) shall be
      absolutely null and void and shall vest no rights in the purported Transferee.
      If any purported transferee shall become a Holder of a Residual Certificate
      in
      violation of the provisions of this Section 5.2(c), then the last preceding
      Permitted Transferee shall be restored to all rights as Holder thereof
      retroactive to the date of registration of Transfer of such Residual
      Certificate. The Trustee shall be under no liability to any Person for any
      registration of Transfer of a Residual Certificate that is in fact not permitted
      by Section 5.2(b) and this Section 5.2(c) or for making any payments due on
      such
      Certificate to the Holder thereof or taking any other action with respect to
      such Holder under the provisions of this Agreement so long as the Transfer
      was
      registered after receipt of the related Transfer Affidavit, Transferor
      Certificate, and in the case of a Residual Certificate which is also a Private
      Certificate, either the Rule 144A Letter or the Investment Letter. The Trustee
      shall be entitled but not obligated to recover from any Holder of a Residual
      Certificate that was in fact not a Permitted Transferee at the time it became
      a
      Holder or, at such subsequent time as it became other than a Permitted
      Transferee, all payments made on such Residual Certificate at and after either
      such time. Any such payments so recovered by the Trustee shall be paid and
      delivered by the Trustee to the last preceding Permitted Transferee of such
      Certificate.

     

    
      
        
        

      

      
        H-6

        
          

        

      

      
        
        

      

       

    

    (v) The
      Depositor shall use its best efforts to make available, upon receipt of written
      request from the Trustee, all information necessary to compute any tax imposed
      under Section 860E(e) of the Code as a result of a Transfer of an Ownership
      Interest in a Residual Certificate to any Holder who is not a Permitted
      Transferee.

     

    The
      restrictions on Transfers of a Residual Certificate set forth in this Section
      5.2(c) shall cease to apply (and the applicable portions of the legend on a
      Residual Certificate may be deleted) with respect to Transfers occurring after
      delivery to the Trustee of an Opinion of Counsel, which Opinion of Counsel
      shall
      not be an expense of the Trust Fund, the Trustee or the Master Servicer, to
      the
      effect that the elimination of such restrictions will not cause the REMIC
      created hereunder to fail to qualify as a REMIC at any time that the
      Certificates are outstanding or result in the imposition of any tax on the
      Trust
      Fund, a Certificateholder or another Person. Each Person holding or acquiring
      any Ownership Interest in a Residual Certificate hereby consents to any
      amendment of this Agreement which, based on an Opinion of Counsel furnished
      to
      the Trustee, is reasonably necessary (a) to ensure that the record ownership
      of,
      or any beneficial interest in, a Residual Certificate is not transferred,
      directly or indirectly, to a Person that is not a Permitted Transferee and
      (b)
      to provide for a means to compel the Transfer of a Residual Certificate which
      is
      held by a Person that is not a Permitted Transferee to a Holder that is a
      Permitted Transferee. 

     

    
      
        
        

      

      
        H-7

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      I

     

    FORM
      OF
      TRANSFEROR CERTIFICATE

     

    _______________,
      20___

    

    First
      Horizon Asset Securities Inc.

    First
      Horizon Home Loan Corporation

    4000
      Horizon Way

    Irving,
      Texas 75063

     

    The
      Bank
      of New York

    101
      Barclay Street, 4W

    New
      York,
      New York 10286

    
       

      
        	 	
                Re:

              	
                First
                  Horizon Mortgage Pass-Through Trust 2007-3 Mortgage Pass-Through
                  Certificates, Series 2007-3, Class

              

      

       

    

    Ladies
      and Gentlemen:

     

    In
      connection with our disposition of the above Certificates we certify that (a)
      to
      the extent we are disposing of a Private Certificate, we understand that the
      Private Certificate has not been registered under the Securities Act of 1933,
      as
      amended (the “Act”), and is being disposed of by us in a transaction that is
      exempt from the registration requirements of the Act, (b) we have not offered
      or
      sold any Certificates to, or solicited offers to buy any Certificates from,
      any
      person, or otherwise approached or negotiated with any person with respect
      thereto, in a manner that would be deemed, or taken any other action which
      would
      result in, a violation of Section 5 of the Act, and (c) to the extent we are
      disposing of a Residual Certificate, we have no knowledge the transferee is
      not
      a Permitted Transferee.

     

    Capitalized
      terms used herein shall have the meaning ascribed to such terms in the Pooling
      and Servicing Agreement dated as of May 1, 2007, by and among First Horizon
      Asset Securities Inc., as depositor, First Horizon Home Loan Corporation, as
      master servicer, and The Bank of New York, as trustee, pursuant to which the
      Residual Certificates were issued. 

     

    
      	 	 	 
	 	
              Very
                truly yours,

            
	 	 
	 	 
	 	
              
Print
              Name of Transferor
	 
 	 
 	 
 
	 	By:  	 
	 	
              
Authorized
              Officer
	 	 

    

    

    
      
        
        

      

      
        I-1

        
          

        

      

      
        
        

      

       

    

    EXHIBIT
      J

     

    FORM
      OF
      INVESTMENT LETTER (NON-RULE 144A)

     

    _____________,
      20___

     

    First
      Horizon Asset Securities Inc.

    4000
      Horizon Way

    Irving,
      Texas 75063

     

    The
      Bank
      of New York

    101
      Barclay Street, 4W

    New
      York,
      New York 10286

    Attention:
      Mortgage-Backed Securities Group 

     

    
      	 	
              Re:

            	
              First
                Horizon Mortgage Pass-Through Trust 2007-3 Mortgage Pass-Through
                Certificates, Series 2007-3, Class
                ___

            

    

     

    Ladies
      and Gentlemen:

     

    In
      connection with our acquisition of the above Certificates we certify that (a)
      we
      understand that the Certificates are not being registered under the Securities
      Act of 1933, as amended (the “Act”), or any state securities laws and are being
      transferred to us in a transaction that is exempt from the registration
      requirements of the Act and any such laws, (b) we are an “accredited investor,”
as defined in Regulation D under the Act, and have such knowledge and experience
      in financial and business matters that we are capable of evaluating the merits
      and risks of investments in the Certificates, (c) we have had the opportunity
      to
      ask questions of and receive answers from the Depositor concerning the purchase
      of the Certificates and all matters relating thereto or any additional
      information deemed necessary to our decision to purchase the Certificates,
      (d)
      either (i) we are not an employee benefit plan or arrangement that is subject
      to
      the Employee Retirement Income Security Act of 1974, as amended, or a plan
      or
      arrangement that is subject to Section 4975 of the Internal Revenue Code of
      1986, as amended, nor are we acting on behalf of any such plan or arrangement
      nor are we using the assets of any such plan or arrangement to effect such
      acquisition or (ii) if, in the case of ERISA-Restricted Certificates that have
      been the subject of an ERISA-Qualifying Underwriting, we are an insurance
      company, a representation that we are an insurance company which is purchasing
      such Certificates with funds contained in an “insurance company general account”
(as such term is defined in Section V(e) of Prohibited Transaction Class
      Exemption 95-60 (“PTCE 95-60”)) and that the purchase and holding of such
      Certificates are covered under Sections I and III PTCE 95-60, (e) we are
      acquiring the Certificates for investment for our own account and not with
      a
      view to any distribution of such Certificates (but without prejudice to our
      right at all times to sell or otherwise dispose of the Certificates in
      accordance with clause (g) below), (f) we have not offered or sold any
      Certificates to, or solicited offers to buy any Certificates from, any person,
      or otherwise approached or negotiated with any person with respect thereto,
      or
      taken any other action which would result in a violation of Section 5 of the
      Act, and (g) we will not sell, transfer or otherwise dispose of any Certificates
      unless (1) such sale, transfer or other disposition is made pursuant to an
      effective registration statement under the Act or is exempt from such
      registration requirements, and if requested, we will at our expense provide
      an
      opinion of counsel satisfactory to the addressees of this Certificate that
      such
      sale, transfer or other disposition may be made pursuant to an exemption from
      the Act, (2) the purchaser or transferee of such Certificate has executed and
      delivered to you a certificate to substantially the same effect as this
      certificate, and (3) the purchaser or transferee has otherwise complied with
      any
      conditions for transfer set forth in the Pooling and Servicing
      Agreement.

     

    
      
        	 	 	 
	 	
                Very
                  truly yours,

              
	 	 
	 	 
	 	
                
Print
                Name of Transferee
	 
 	 
 	 
 
	 	By:  	 
	 	
                
Authorized
                Officer
	 	 

      

       

      
        
          
          

        

        
          J-1

          
            

          

        

        
          
          

        

      

    

     

    EXHIBIT
      K

     

    FORM
      OF
      RULE 144A LETTER

     

    ___________,
      20__

    First
      Horizon Asset Securities Inc.

    4000
      Horizon Way

    Irving,
      Texas 75063

     

    The
      Bank
      of New York

    101
      Barclay Street, 4W

    New
      York,
      New York 10286

    Attention:
      Mortgage-Backed Securities Group

     

    
      	 	
              Re:

            	
              First
                Horizon Mortgage Pass-Through Trust 2007-3 Mortgage Pass-Through
                Certificates, Series 2007-3, Class
                ___

            

    

     

    Ladies
      and Gentlemen:

     

    In
      connection with our acquisition of the above Certificates we certify that (a)
      we
      understand that the Certificates are not being registered under the Securities
      Act of 1933, as amended (the “Act”), or any state securities laws and are being
      transferred to us in a transaction that is exempt from the registration
      requirements of the Act and any such laws, (b) we have such knowledge and
      experience in financial and business matters that we are capable of evaluating
      the merits and risks of investments in the Certificates, (c) we have had the
      opportunity to ask questions of and receive answers from the Depositor
      concerning the purchase of the Certificates and all matters relating thereto
      or
      any additional information deemed necessary to our decision to purchase the
      Certificates, (d) we are not an employee benefit plan or arrangement that is
      subject to the Employee Retirement Income Security Act of 1974, as amended,
      or a
      plan or arrangement that is subject to Section 4975 of the Internal Revenue
      Code
      of 1986, as amended, nor are we acting on behalf of any such plan or arrangement
      nor using the assets of any such plan or arrangement to effect such acquisition,
      (e) if an insurance company, in the case of ERISA-restricted Certificates that
      have been the subject of an ERISA-Qualifying Underwriting, we are purchasing
      the
      Certificates with funds contained in an “insurance company general account” (as
      defined in Section V(e) of Prohibited Transaction Class Exemption 95-60 (“PTCE
      95-60”)) and our purchase and holding of the Certificates are covered under
      Sections I and III of PTCE 95-60, (f) we have not, nor has anyone acting on
      our
      behalf offered, transferred, pledged, sold or otherwise disposed of the
      Certificates, any interest in the Certificates or any other similar security
      to,
      or solicited any offer to buy or accept a transfer, pledge or other disposition
      of the Certificates, any interest in the Certificates or any other similar
      security from, or otherwise approached or negotiated with respect to the
      Certificates, any interest in the Certificates or any other similar security
      with, any person in any manner, or made any general solicitation by means of
      general advertising or in any other manner, or taken any other action, that
      would constitute a distribution of the Certificates under the Act or that would
      render the disposition of the Certificates a violation of Section 5 of the
      Act
      or require registration pursuant thereto, nor will act, nor has authorized
      or
      will authorize any person to act, in such manner with respect to the
      Certificates, (g) we are a “qualified institutional buyer” as that term is
      defined in Rule 144A under the Act (“Rule 144A”) and have completed either of
      the forms of certification to that effect attached hereto as Annex 1 or Annex
      2,
      (h) we are aware that the sale to us is being made in reliance on Rule 144A,
      and
      (i) we are acquiring the Certificates for our own account or for resale pursuant
      to Rule 144A and further, understand that such Certificates may be resold,
      pledged or transferred only (A) to a person reasonably believed to be a
      qualified institutional buyer that purchases for its own account or for the
      account of a qualified institutional buyer to whom notice is given that the
      resale, pledge or transfer is being made in reliance on Rule 144A, or (B)
      pursuant to another exemption from registration under the Act.

     

    
      
        
          	 	 	 
	 	
                  Very
                    truly yours,

                
	 	 
	 	 
	 	
                  
Print
                  Name of Transferee
	 
 	 
 	 
 
	 	By:  	 
	 	
                  
Authorized
                  Officer
	 	 

        

         

        
          
            
            

          

          
            K-1

            
              

            

          

          
            
            

          

        

      

    

    ANNEX
      1
      TO EXHIBIT K

     

    QUALIFIED
      INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

     

    [For
      Transferees Other Than Registered Investment Companies]

     

    The
      undersigned (the “Buyer”) hereby certifies as follows to the parties listed in
      the Rule 144A Transferee Certificate to which this certification relates with
      respect to the Certificates described therein:

     

    1.
       As
      indicated below, the undersigned is the President, Chief Financial Officer,
      Senior Vice President or other executive officer of the Buyer.

     

    2.
       In
      connection with purchases by the Buyer, the Buyer is a “qualified institutional
      buyer” as that term is defined in Rule 144A under the Securities Act of 1933, as
      amended (“Rule 144A”) because (i) the Buyer owned and/or invested on a
      discretionary basis $ ______1 
      in
      securities (except for the excluded securities referred to below) as of the
      end
      of the Buyer’s most recent fiscal year (such amount being calculated in
      accordance with Rule 144A and (ii) the Buyer satisfies the criteria in the
      category marked below.

     

    ___ Corporation,
      etc.
      The
      Buyer is a corporation (other than a bank, savings and loan association or
      similar institution), Massachusetts or similar business trust, partnership,
      or
      charitable organization described in Section 501(c)(3) of the Internal Revenue
      Code of 1986, as amended.

     

    ___ Bank.
      The
      Buyer (a) is a national bank or banking institution organized under the laws
      of
      any State, territory or the District of Columbia, the business of which is
      substantially confined to banking and is supervised by the State or territorial
      banking commission or similar official or is a foreign bank or equivalent
      institution, and (b) has an audited net worth of at least $25,000,000 as
      demonstrated in its latest annual financial statements, a
      copy
      of which is attached hereto.

     

    ___ Savings
      and Loan.
      The
      Buyer (a) is a savings and loan association, building and loan association,
      cooperative bank, homestead association or similar institution, which is
      supervised and examined by a State or Federal authority having supervision
      over
      any such institutions or is a foreign savings and loan association or equivalent
      institution and (b) has an audited net worth of at least $25,000,000 as
      demonstrated in its latest annual financial statements, a
      copy
      of which is attached hereto.

     

    ___ Broker-dealer.
      The
      Buyer is a dealer registered pursuant to Section 15 of the Securities Exchange
      Act of 1934.

     

      

    

    1
      Buyer
      must own and/or invest on a discretionary basis at least $100,000,000 in
      securities unless Buyer is a dealer, and, in that case, Buyer must own and/or
      invest on a discretionary basis at least $10,000,000 in
      securities.

     

    
      
        
        

      

      
        K-3

        
          

        

      

      
        
        

      

       

    

    ___ Insurance
      Company.
      The
      Buyer is an insurance company whose primary and predominant business activity
      is
      the writing of insurance or the reinsuring of risks underwritten by insurance
      companies and which is subject to supervision by the insurance commissioner
      or a
      similar official or agency of a State, territory or the District of
      Columbia.

     

    ___ State
      or Local Plan.
      The
      Buyer is a plan established and maintained by a State, its political
      subdivisions, or any agency or instrumentality of the State or its political
      subdivisions, for the benefit of its employees.

     

    ___ ERISA
      Plan.
      The
      Buyer is an employee benefit plan within the meaning of Title I of the Employee
      Retirement Income Security Act of 1974.

     

    ___ Investment
      Advisor.
      The
      Buyer is an investment advisor registered under the Investment Advisors Act
      of
      1940.

     

    ___ Small
      Business Investment Company.
      Buyer
      is a small business investment company licensed by the U.S. Small Business
      Administration under Section 301(c) or (d) of the Small Business Investment
      Act
      of 1958.

     

    ___ Business
      Development Company.
      Buyer
      is a business development company as defined in Section 202(a)(22) of the
      Investment Advisors Act of 1940.

     

    3.
       The
      term
“securities”
as
      used
      herein does
      not include
      (i)
      securities of issuers that are affiliated with the Buyer, (ii) securities that
      are part of an unsold allotment to or subscription by the Buyer, if the Buyer
      is
      a dealer, (iii) securities issued or guaranteed by the U.S. or any
      instrumentality thereof, (iv) bank deposit notes and certificates of deposit,
      (v) loan participations, (vi) repurchase agreements, (vii) securities owned
      but
      subject to a repurchase agreement and (viii) currency, interest rate and
      commodity swaps.

     

    4.
       For
      purposes of determining the aggregate amount of securities owned and/or invested
      on a discretionary basis by the Buyer, the Buyer used the cost of such
      securities to the Buyer and did not include any of the securities referred
      to in
      the preceding paragraph, except (i) where the Buyer reports its securities
      holdings in its financial statements on the basis of their market value, and
      (ii) no current information with respect to the cost of those securities has
      been published. If clause (ii) in the preceding sentence applies, the securities
      may be valued at market. Further, in determining such aggregate amount, the
      Buyer may have included securities owned by subsidiaries of the Buyer, but
      only
      if such subsidiaries are consolidated with the Buyer in its financial statements
      prepared in accordance with generally accepted accounting principles and if
      the
      investments of such subsidiaries are managed under the Buyer’s direction.
      However, such securities were not included if the Buyer is a majority-owned,
      consolidated subsidiary of another enterprise and the Buyer is not itself a
      reporting company under the Securities Exchange Act of 1934, as
      amended.

     

    5.
       The
      Buyer
      acknowledges that it is familiar with Rule 144A and understands that the seller
      to it and other parties related to the Certificates are relying and will
      continue to rely on the statements made herein because one or more sales to
      the
      Buyer may be in reliance on Rule 144A.

     

    
      
        
        

      

      
        K-4

        
          

        

      

      
        
        

      

    

     

    6.
       Until
      the
      date of purchase of the Rule 144A Securities, the Buyer will notify each of
      the
      parties to which this certification is made of any changes in the information
      and conclusions herein. Until such notice is given, the Buyer’s purchase of the
      Certificates will constitute a reaffirmation of this certification as of the
      date of such purchase. In addition, if the Buyer is a bank or savings and loan
      is provided above, the Buyer agrees that it will furnish to such parties updated
      annual financial statements promptly after they become available.

     

    
      
        
          
            	 	 	 
	 	 
	 	
                    
Print
                    Name of Transferee
	 
 	 
 	 
 
	 	By:  	 
	 	
                    
                      

                    

                    Name:

                  
	 	
                    
                      

                    
Title:
	 	
                    
                      

                    
Date:  
	 	
                    
                      

                    

                  

          

        

      

    

     

    
      
        
        

      

      
        K-5

        
          

        

      

      
        
        

      

    

     

    ANNEX
      2
      TO EXHIBIT K

     

    QUALIFIED
      INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

     

    [For
      Transferees That are Registered Investment Companies]

     

    The
      undersigned (the “Buyer”) hereby certifies as follows to the parties listed in
      the Rule 144A Transferee Certificate to which this certification relates with
      respect to the Certificates described therein:

     

    1.
       As
      indicated below, the undersigned is the President, Chief Financial Officer
      or
      Senior Vice President of the Buyer or, if the Buyer is a “qualified
      institutional buyer” as that term is defined in Rule 144A under the Securities
      Act of 1933, as amended (“Rule 144A”) because Buyer is part of a Family of
      Investment Companies (as defined below), is such an officer of the
      Adviser.

     

    2.
       In
      connection with purchases by Buyer, the Buyer is a “qualified institutional
      buyer” as defined in SEC Rule 144A because (i) the Buyer is an investment
      company registered under the Investment Company Act of 1940, as amended and
      (ii)
      as marked below, the Buyer alone, or the Buyer’s Family of Investment Companies,
      owned at least $100,000,000 in securities (other than the excluded securities
      referred to below) as of the end of the Buyer’s most recent fiscal year. For
      purposes of determining the amount of securities owned by the Buyer or the
      Buyer’s Family of Investment Companies, the cost of such securities was used,
      except (i) where the Buyer or the Buyer’s Family of Investment Companies reports
      its securities holdings in its financial statements on the basis of their market
      value, and (ii) no current information with respect to the cost of those
      securities has been published. If clause (ii) in the preceding sentence applies,
      the securities may be valued at market.

     

    ___ The
      Buyer
      owned $ in securities (other than the excluded securities referred to below)
      as
      of the end of the Buyer’s most recent fiscal year (such amount being calculated
      in accordance with Rule 144A).

     

    ___ The
      Buyer
      is part of a Family of Investment Companies which owned in the aggregate $
      in
      securities (other than the excluded securities referred to below) as of the
      end
      of the Buyer’s most recent fiscal year (such amount being calculated in
      accordance with Rule 144A).

     

    3.
       The
      term
“Family
      of Investment Companies”
as
      used
      herein means two or more registered investment companies (or series thereof)
      that have the same investment adviser or investment advisers that are affiliated
      (by virtue of being majority owned subsidiaries of the same parent or because
      one investment adviser is a majority owned subsidiary of the
      other).

     

    4.
       The
      term
“securities”
as
      used
      herein does not include (i) securities of issuers that are affiliated with
      the
      Buyer or are part of the Buyer’s Family of Investment Companies, (ii) securities
      issued or guaranteed by the U.S. or any instrumentality thereof, (iii) bank
      deposit notes and certificates of deposit, (iv) loan participations, (v)
      repurchase agreements, (vi) securities owned but subject to a repurchase
      agreement and (vii) currency, interest rate and commodity swaps.

     

    
      
        
        

      

      
        K-6

        
          

        

      

      
        
        

      

    

     

    5.
       The
      Buyer
      is familiar with Rule 144A and understands that the parties listed in the Rule
      144A Transferee Certificate to which this certification relates are relying
      and
      will continue to rely on the statements made herein because one or more sales
      to
      the Buyer will be in reliance on Rule 144A. In addition, the Buyer will only
      purchase for the Buyer’s own account.

     

    6.
       Until
      the
      date of purchase of the Certificates, the undersigned will notify the parties
      listed in the Rule 144A Transferee Certificate to which this certification
      relates of any changes in the information and conclusions herein. Until such
      notice is given, the Buyer’s purchase of the Certificates will constitute a
      reaffirmation of this certification by the undersigned as of the date of such
      purchase.

     

    
      
        
          
            
              	 	 	 
	 	 
	 	
                      
Print
                      Name of Transferee
	 
 	 
 	 
 
	 	By:  	 
	 	
                      
                        

                      

                      Name:

                    
	 	
                      
                        

                      
Title:
	 	
                      
                        

                      

                    
	 	 
	 	 
	 	IF AN ADVISER:
	 	 
	 	
                      
Print
                      Name of Buyer
	 	 
	 	
                      Date:  

                    
	 	
                      
                        

                      

                    

            

          

        

      

       

      
        
          
          

        

        
          K-7

          
            

          

        

        
          
          

        

      

      
        
          
            
              
                 

              

            

          

        

      

    

    EXHIBIT
      L

     

    REQUEST
      FOR RELEASE

     

    [Substitution
      of Deleted Mortgage Loans

     

    or

     

    Mortgage
      Loans Paid in Full]

     

    ____________________________________
      Mortgage Loan Files

     

    _____________________
      hereby certifies that he/she is an officer of _____________________, holding
      the
      office set forth beneath his/her signature, and hereby further certifies as
      follows:

     

    (Check
      One)

     

    
      	
              o

            	
              With
                respect to the mortgage loans described in the attached schedule,
                each
                such mortgage loan constitutes a “Substitute Mortgage Loan” (as the term
                is defined in the Pooling and Servicing
                Agreement).

            

    

     

    
      	
              o

            	
              With
                respect to the “Mortgage Loans” (as the term is defined in the custodial
                agreement) described in the attached
                schedule:

            

    

     

    All
      payments of principal, premium (if any), and interest have been made with
      respect to the following:

     

    Loan
      Number: _________________________________

     

    Borrower’s
      Name: ______________________________

     

    County:
      ______________________________________

     

    We
      hereby
      certify that all amounts to be received in connection with such payments have
      been received.

     

    ______________________________

     

    Dated:
      ______________________

     

    /
      / Vice
      President

     

    /
      /
      Assistant Vice President

     

    
      
        
        

      

      
        L-1

        
          

        

      

      
        
        

      

       

    

    EXHIBIT
      M

     

    REQUEST
      FOR RELEASE AND RECEIPT

     

    [For
      Servicing and Foreclosure]

     

    _____________________________________
      Mortgage Loan Files

     

    LOAN
      INFORMATION

     

    Name
      of
      Mortgagor:  __________________________________       

     

    Loan
      No.:
  __________________________________ 

     

    The
      undersigned hereby acknowledges that it has received from FIRST TENNESSEE BANK
      NATIONAL ASSOCIATION, as Custodian for ____________________ Mortgage Loan Files,
      the documents referred to below (the “Documents”). All capitalized terms not
      otherwise defined in this Request for Release and Receipt shall have the
      meanings ascribed to them in the Custodial Agreement dated as of
      __________________ among ___________________ and FIRST TENNESSEE BANK NATIONAL
      ASSOCIATION, as Custodian (the “Custodial Agreement”).

     

    [complete
      as necessary]

     

    The
      undersigned hereby acknowledges an agrees as follows:

     

    (1) The
      undersigned shall hold and retain possession of the Documents in trust for
      the
      benefit of __________________, solely for the purposes provided in the Custodial
      Agreement.

     

    (2) The
      undersigned shall not cause or permit the Documents to become subject to, or
      encumbered by, any claim, liens, security interest, charges, writs of attachment
      or other impositions nor shall the undersigned assert or seek to assert any
      claims or rights of setoff to or against the Documents or any proceeds
      thereof.

     

    (3) The
      undersigned shall return each and every Document previously requested from
      the
      Mortgage File to the Custodian when the need therefor no longer exists, unless
      the Mortgage Loan relating to the Documents has been liquidated.

     

    Date: _____________________   

    
       

      
        
          
            
              	 	 	 
	 	NAME
	 
 	 
 	 
 
	 	By:  	 
	 	
                      
                        

                      

                      Name:

                    
	 	
                      
                        

                      
Title:
	 	
                      
                        

                      

                    

            

          

        

      

    

     

    
      
        
        

      

      
        M-1

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      N-1

     

    FORM
      OF
      ANNUAL CERTIFICATION

     

    (Subservicer)

     

    Re: First
      Horizon Mortgage Pass-Through Trust 2007-3 (the “Trust”),
      Mortgage Pass-Through Certificates, Series 2007-3, issued pursuant to the
      Pooling and Servicing Agreement, dated as of May 1, 2007 (the “Pooling
      and Servicing Agreement”),
      among
      First Horizon Asset Securities Inc., as depositor (the “Depositor”),
      First
      Horizon Home Loan Corporation, as master servicer (the “Master Servicer”) and
      The Bank of New York, as trustee (the “Trustee”)

     

    I,
      [identify the certifying individual], a [title of certifying individual] of
      [name of company] (the “Company”), hereby certify to the Depositor, the Trustee,
      the Master Servicer, and their officers, directors and affiliates, and with
      the
      knowledge and intent that they will rely upon this certification,
      that:

     

    1. I
      have
      reviewed the servicer compliance statement of the Company provided in accordance
      with Item 1123 of Regulation AB (the “Compliance
      Statement”),
      the
      report on assessment of the Company’s compliance with the servicing criteria set
      forth in Item 1122(d) of Regulation AB (the “Servicing
      Criteria”),
      provided in accordance with Rules 13a-18 and 15d-18 under Securities Exchange
      Act of 1934, as amended (the “Exchange
      Act”)
      and
      Item 1122 of Regulation AB (the “Servicing
      Assessment”),
      the
      registered public accounting firm’s attestation report provided in accordance
      with Rules 13a-18 and 15d-18 under the Exchange Act and Section 1122(b) of
      Regulation AB (the “Attestation
      Report”),
      and
      all servicing reports, officer’s certificates and other information relating to
      the servicing of the Mortgage Loans by the Company during 200[ ] that were
      delivered by the Company to the [Depositor] [Master Servicer] [Trustee] pursuant
      to the Pooling and Servicing Agreement (collectively, the “Company
      Servicing Information”);

     

    2. Based
      upon my knowledge, the Company Servicing Information, taken as a whole, does
      not
      contain any untrue statement of a material fact or omit to state a material
      fact
      necessary to make the statements made, in light of the circumstances under
      which
      such statements were made, not misleading with respect to the period of time
      covered by the Company Servicing Information;

     

    3. Based
      on
      my knowledge, all of the Company Servicing Information required to be provided
      by the Company under the Pooling and Servicing Agreement has been provided
      to
      the [Depositor] [Master Servicer] [Trustee];

     

    4. I
      am
      responsible for reviewing the activities performed by the Company as a servicer
      under the Pooling and Servicing Agreement, and based on my knowledge and the
      compliance review conducted in preparing the Compliance Statement and except
      as
      disclosed in the Compliance Statement, the Servicing Assessment or the
      Attestation Report, the Company has fulfilled its obligations under the Pooling
      and Servicing Agreement in all material respects; and

     

    
      
        
        

      

      
        N-1-1

        
          

        

      

      
        
        

      

    

     

    5. The
      Compliance Statement required to be delivered by the Company pursuant to the
      Pooling and Servicing Agreement, and the Servicing Assessment and Attestation
      Report required to be provided by the Company and by any Subservicer or
      Subcontractor pursuant to the Pooling and Servicing Agreement, have been
      provided to the [Depositor] [Master Servicer]. Any material instances of
      noncompliance described in such reports have been disclosed to the [Depositor]
      [Master Servicer]. Any material instance of noncompliance with the Servicing
      Criteria has been disclosed in such reports.

     

    
      
        
          
            
              
                	 	 	 
	
                         Date:

                      	
                      
	 
 	
                        

                      
	 	
                        
                          

                        

                        
                          [Signature]

                        

                      
	 	
                        [Title]

                      
	 	
                         

                      

              

            

          

        

      

    

     

    
      
        
        

      

      
        N-1-2

        
          

        

      

      
        
        

      

       

    

    EXHIBIT
      N-2

     

    FORM
      OF
      ANNUAL CERTIFICATION

     

    (Trustee)

     

    Re: First
      Horizon Mortgage Pass-Through Trust 2007-3 (the “Trust”),
      Mortgage Pass-Through Certificates, Series 2007-3, issued pursuant to the
      Pooling and Servicing Agreement, dated as of May 1, 2007 (the “Pooling
      and Servicing Agreement”),
      among
      First Horizon Asset Securities Inc., as depositor (the “Depositor”),
      First
      Horizon Home Loan Corporation, as master servicer (the “Master Servicer”) and
      The Bank of New York, as trustee (the “Trustee”)

     

    I,
      [identify the certifying individual], a [title of certifying individual] of
      the
      Trustee, hereby certify to the Depositor, the Master Servicer, and their
      officers, directors and affiliates, and with the knowledge and intent that
      they
      will rely upon this certification, that:

     

    1. I
      have
      reviewed the report on assessment of the Trustee’s compliance with the servicing
      criteria set forth in Item 1122(d) of Regulation AB (the “Servicing
      Criteria”),
      provided in accordance with Rules 13a-18 and 15d-18 under Securities Exchange
      Act of 1934, as amended (the “Exchange
      Act”)
      and
      Item 1122 of Regulation AB (the “Servicing
      Assessment”),
      and
      the registered public accounting firm’s attestation report provided in
      accordance with Rules 13a-18 and 15d-18 under the Exchange Act and Section
      1122(b) of Regulation AB (the “Attestation
      Report”)
      (collectively, the “Trustee
      Information”);

     

    2. Based
      upon my knowledge, the Trustee Information, taken as a whole, does not contain
      any untrue statement of a material fact or omit to state a material fact
      necessary to make the statements made, in light of the circumstances under
      which
      such statements were made, not misleading with respect to the period of time
      covered by the Trustee Information;

     

    3. Based
      on
      my knowledge, all of the Trustee Information required to be provided by the
      Trustee under the Pooling and Servicing Agreement has been provided to the
      [Depositor] [Master Servicer];

     

    4. I
      am
      responsible for reviewing the activities performed by the Trustee as trustee
      under the Pooling and Servicing Agreement, and based on my knowledge and the
      compliance review conducted in preparing the Compliance Statement and except
      as
      disclosed in the Servicing Assessment or the Attestation Report, the Trustee
      has
      fulfilled its obligations under the Pooling and Servicing Agreement in all
      material respects; and

     

    
      
        
        

      

      
        N-2-1

        
          

        

      

      
        
        

      

    

     

    5. The
      Servicing Assessment and Attestation Report required to be provided by the
      Trustee pursuant to the Pooling and Servicing Agreement have been provided
      to
      the [Depositor] [Master Servicer]. Any material instances of noncompliance
      described in such reports have been disclosed to the [Depositor] [Master
      Servicer]. Any material instance of noncompliance with the Servicing Criteria
      has been disclosed in such reports.

     

    
      
        
          
            
              
                
                  	 	 	 
	
                           Date:

                        	
                        
	 
 	
                          

                        
	 	
                          
                            

                          

                          
                            [Signature]

                          

                        
	 	
                          [Title]

                        
	 	
                           

                        

                

              

            

          

        

      

       

      
        
          
          

        

        
          N-2-2

          
            

          

        

        
          
          

        

         

      

    

    EXHIBIT
      O

     

    [FORM
      OF]
      SERVICING CRITERIA TO BE ADDRESSED IN ASSESSMENT OF COMPLIANCE
      STATEMENT

     

    The
      assessment of compliance to be delivered by [the Master Servicer] [Trustee]
      [Name of Subservicer] shall address, at a minimum, the criteria identified
      as
      below as “Applicable Servicing Criteria”:

     

    
      	
              SERVICING
                CRITERIA

            

    

     

    
      	
              Reference

            	 	
              Criteria

            	 	
              Responsible

              Party*

            
	 	 	 	 	 
	 	 	
              General
                Servicing Considerations

            	 	 
	 	 	 	 	 
	
              1122(d)(1)(i)

               

            	 	
              Policies
                and procedures are instituted to monitor any performance or other
                triggers
                and events of default in accordance with the transaction
                agreements.

            	 	
              Master
                

              Servicer

              Trustee

            
	 	 	 	 	 
	
              1122(d)(1)(ii)

               

            	 	
              If
                any material servicing activities are outsourced to third parties,
                policies and procedures are instituted to monitor the third party’s
                performance and compliance with such servicing activities.

            	 	
              Master
                

              Servicer

              Trustee

            
	 	 	 	 	 
	
              1122(d)(1)(iii)

               

            	 	
              Any
                requirements in the transaction agreements to maintain a back-up
                servicer
                for the mortgage loans are maintained.

            	 	
              N/A

               

            
	 	 	 	 	 
	
              1122(d)(1)(iv)

               

            	 	
              A
                fidelity bond and errors and omissions policy is in effect on the
                party
                participating in the servicing function throughout the reporting
                period in
                the amount of coverage required by and otherwise in accordance with
                the
                terms of the transaction agreements.

            	 	
              Master
                

              Servicer

               

            
	 	 	 	 	 
	 	 	
              Cash
                Collection and Administration

            	 	 
	 	 	 	 	 
	
              1122(d)(2)(i)

               

            	 	
              Payments
                on mortgage loans are deposited into the appropriate custodial bank
                accounts and related bank clearing accounts no more than two business
                days
                following receipt, or such other number of days specified in the
                transaction agreements.

            	 	
              Master/Sub

              Servicer
                

              (Certificate

               Account)

            
	 	 	 	 	 
	
              1122(d)(2)(ii)

               

            	 	
              Disbursements
                made via wire transfer on behalf of an obligor or to an investor
                are made
                only by authorized personnel.

            	 	
              Master
                

              Servicer

              Trustee

            
	 	 	 	 	 
	
              1122(d)(2)(iii)

               

            	 	
              Advances
                of funds or guarantees regarding collections, cash flows or distributions,
                and any interest or other fees charged for such advances, are made,
                reviewed and approved as specified in the transaction
                agreements.

            	 	
              Master/Sub
                

              Servicer

            

    

     

    
      
        
        

      

      
        O-1

        
          

        

      

      
        
        

      

    

     

    
      	
              1122(d)(2)(iv)

               

            	 	
              The
                related accounts for the transaction, such as cash reserve accounts
                or
                accounts established as a form of overcollateralization, are separately
                maintained (e.g., with respect to commingling of cash) as set forth
                in the
                transaction agreements.

            	 	
              Master/Sub
                

              Servicer

              Trustee

            
	 	 	 	 	 
	
              1122(d)(2)(v)

               

            	 	
              Each
                custodial account is maintained at a federally insured depository
                institution as set forth in the transaction agreements. For purposes
                of
                this criterion, “federally insured depository institution” with respect to
                a foreign financial institution means a foreign financial institution
                that
                meets the requirements of Rule 13k-1(b)(1) of the Securities Exchange
                Act.

            	 	
              Trustee
                (Distribution Account)*; Master/Sub Servicer (Certificate
                Account)

            
	 	 	 	 	 
	
              1122(d)(2)(vi)

            	 	
              Unissued
                checks are safeguarded so as to prevent unauthorized
                access.

            	 	
              N/A

            
	 	 	 	 	 
	
              1122(d)(2)(vii)

               

            	 	
              Reconciliations
                are prepared on a monthly basis for all asset-backed securities related
                bank accounts, including custodial accounts and related bank clearing
                accounts. These reconciliations are (A) mathematically accurate;
                (B)
                prepared within 30 calendar days after the bank statement cutoff
                date, or
                such other number of days specified in the transaction agreements;
                (C)
                reviewed and approved by someone other than the person who prepared
                the
                reconciliation; and (D) contain explanations for reconciling items.
                These
                reconciling items are resolved within 90 calendar days of their original
                identification, or such other number of days specified in the transaction
                agreements.

            	 	
              Master/Sub
                Servicer

              Trustee

               

            
	 	 	 	 	 
	 	 	
              Investor
                Remittances and Reporting

            	 	 

    

    
      	 	 	 	 	 
	
              1122(d)(3)(i)

               

            	 	
              Reports
                to investors, including those to be filed with the Commission, are
                maintained in accordance with the transaction agreements and applicable
                Commission requirements. Specifically, such reports (A) are prepared
                in
                accordance with timeframes and other terms set forth in the transaction
                agreements; (B) provide information calculated in accordance with
                the
                terms specified in the transaction agreements; (C) are filed with
                the
                Commission as required by its rules and regulations; and (D) agree
                with
                investors’ or the trustee’s records as to the total unpaid principal
                balance and number of mortgage loans serviced by the
                Servicer.

            	 	
              Trustee

               

            
	 	 	 	 	 
	
              1122(d)(3)(ii)

               

            	 	
              Amounts
                due to investors are allocated and remitted in other terms set forth
                in
                the transaction agreements.

               

            	 	
              Master
                

              Servicer

              Trustee

            

    

    

      *Pending
        further clarification from the SEC.

       

    

    
      
        
        

      

      
        O-2

        
          

        

      

      
        
        

      

    

     

    
      	
              1122(d)(3)(iii)

               

            	 	
              Disbursements
                made to an investor are posted within two business days to the Servicer’s
                investor records, or such other number of days specified in the
                transaction agreements.

            	 	
              Trustee

               

            
	 	 	 	 	
               

            
	
              1122(d)(3)(iv)

               

            	 	
              Amounts
                remitted to investors per the investor reports agree with cancelled
                checks, or other form of payment, or custodial bank
                statements.

            	 	
              Trustee

               

            
	 	 	 	 	 
	 	 	
              Pool
                Asset Administration

            	 	 
	 	 	 	 	 
	
              1122(d)(4)(i)

               

            	 	
              Collateral
                or security on mortgage loans is maintained as required by the transaction
                agreements or related mortgage loan documents.

            	 	
              Master/Sub
                

              Servicer

            
	 	 	 	 	 
	
              1122(d)(4)(ii)

            	 	
              Mortgage
                loan and related documents are safeguarded as required by the transaction
                agreements.

            	 	
              Master/Sub
                

              Servicer

            
	 	 	 	 	 
	
              1122(d)(4)(iii)

               

            	 	
              Any
                additions, removals or substitutions to the asset pool are made,
                reviewed
                and approved in accordance with any conditions or requirements in
                the
                transaction agreements.

            	 	
              Master/Sub
                

              Servicer

            
	 	 	 	 	 
	
              1122(d)(4)(iv)

               

            	 	
              Payments
                on mortgage loans, including any payoffs, made in accordance with
                the
                related mortgage loan documents are posted to the Servicer’s obligor
                records maintained no more than two business days after receipt,
                or such
                other number of days specified in the transaction agreements, and
                allocated to principal, interest or other items (e.g., escrow) in
                accordance with the related mortgage loan documents.

            	 	
              Master/Sub
                

              Servicer

               

            
	 	 	 	 	 
	
              1122(d)(4)(v)

               

            	 	
              The
                Servicer’s records regarding the mortgage loans agree with the Servicer’s
                records with respect to an obligor’s unpaid principal
                balance.

            	 	
              Master/Sub
                

              Servicer

            
	 	 	 	 	 
	
              1122(d)(4)(vi)

               

            	 	
              Changes
                with respect to the terms or status of an obligor’s mortgage loans (e.g.,
                loan modifications or re-agings) are made, reviewed and approved
                by
                authorized personnel in accordance with the transaction agreements
                and
                related pool asset documents.

            	 	
              Master/Sub
                

              Servicer

               

            
	 	 	 	 	 

    

    
      	
              1122(d)(4)(vii)

               

            	 	
              Loss
                mitigation or recovery actions (e.g., forbearance plans, modifications
                and
                deeds in lieu of foreclosure, foreclosures and repossessions, as
                applicable) are initiated, conducted and concluded in accordance
                with the
                timeframes or other requirements established by the transaction
                agreements

            	 	
              Master/Sub
                

              Servicer

               

            

    

     

    
      
        
        

      

      
        O-3

        
          

        

      

      
        
        

      

    

     

    
      	
              1122(d)(4)(viii)

               

            	 	
              Records
                documenting collection efforts are maintained during the period a
                mortgage
                loan is delinquent in accordance with the transaction agreements.
                Such
                records are maintained on at least a monthly basis, or such other
                period
                specified in the transaction agreements, and describe the entity’s
                activities in monitoring delinquent mortgage loans including, for
                example,
                phone calls, letters and payment rescheduling plans in cases where
                delinquency is deemed temporary (e.g., illness or
                unemployment).

            	 	
              Master/Sub
                

              Servicer

               

            
	 	 	 	 	 
	
              1122(d)(4)(ix)

               

            	 	
              Adjustments
                to interest rates or rates of return for mortgage loans with variable
                rates are computed based on the related mortgage loan
                documents.

            	 	
              Master/Sub
                

              Servicer

            
	 	 	 	 	 
	
              1122(d)(4)(x)

               

            	 	
              Regarding
                any funds held in trust for an obligor (such as escrow accounts):
                (A) such
                funds are analyzed, in accordance with the obligor’s mortgage loan
                documents, on at least an annual basis, or such other period specified
                in
                the transaction agreements; (B) interest on such funds is paid, or
                credited, to obligors in accordance with applicable mortgage loan
                documents and state laws; and (C) such funds are returned to the
                obligor
                within 30 calendar days of full repayment of the related mortgage
                loans,
                or such other number of days specified in the transaction
                agreements.

            	 	
              Master/Sub

              Servicer

               

            
	 	 	 	 	 
	
              1122(d)(4)(xi)

               

            	 	
              Payments
                made on behalf of an obligor (such as tax or insurance payments)
                are made
                on or before the related penalty or expiration dates, as indicated
                on the
                appropriate bills or notices for such payments, provided that such
                support
                has been received by the servicer at least 30 calendar days prior
                to these
                dates, or such other number of days specified in the transaction
                agreements.

            	 	
              Master/Sub
                

              Servicer

               

            
	 	 	 	 	 
	
              1122(d)(4)(xii)

               

            	 	
              Any
                late payment penalties in connection with any payment to be made
                on behalf
                of an obligor are paid from the servicer’s funds and not charged to the
                obligor, unless the late payment was due to the obligor’s error or
                omission.

            	 	
              Master/Sub
                

              Servicer

            
	 	 	 	 	 
	
              1122(d)(4)(xiii)

               

            	 	
              Disbursements
                made on behalf of an obligor are posted within two business days
                to the
                obligor’s records maintained by the servicer, or such other number of days
                specified in the transaction agreements.

            	 	
              Master/Sub

              Servicer

            
	 	 	 	 	 
	
              1122(d)(4)(xiv)

               

            	 	
              Delinquencies,
                charge-offs and uncollectible accounts are recognized and recorded
                in
                accordance with the transaction agreements.

            	 	
              Master/Sub

               Servicer

            
	 	 	 	 	 

    

    
      	
              1122(d)(4)(xv)

               

            	 	
              Any
                external enhancement or other support, identified in Item 1114(a)(1)
                through (3) or Item 1115 of Regulation AB, is maintained as set forth
                in
                the transaction agreements.

            	 	
              Trustee*;

              Master/Sub
                

              Servicer

            

    

    
       

      *Solely
        with respect to disbursements to the enhancement provider required by the
        transaction documents.

    

     

    
      	 	 	 
	 	
              [NAME
                OF MASTER SERVICER] [NAME OF 

              TRUSTEE]
                [NAME OF
                CO-TRUSTEE] 

              [SUBSERVICER]

            
	 	 	 
	 	Date:  	 
	 
 	 
 	 
 
	 	By:  	 
	 	
              
                

              
Name: 
	 	
              
                

              
Title: 
	 	
              
                

              

            

    

     

    
      
        
        

      

      
        O-4

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      P

     

    FORM
      OF
      LIST OF ITEM 1119 PARTIES

    MORTGAGE
      PASS-THROUGH TRUST 200_-___

     

    Mortgage
      Pass-Through Certificates,

    Series
      200__-___

     

    
      	
              Party

            	 	 	
              Contact
                Information

            	 
	 	 	 	 	 

    

     

    
      
        
        

      

      
        P-1

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      Q

     

    FORM
      OF
      SARBANES-OXLEY CERTIFICATION

    (Replacement
      of the Master Servicer) 

     

    I,
      [identify the certifying individual], a [title of certifying individual] of
      First Horizon Home Loan Corporation (the “Company”),
      hereby certify that:

     

    6. I
      have
      reviewed the report on Form 10-K and all reports on Form 10-D required to be
      filed in respect of the period covered by this report on Form 10-K of First
      Horizon Mortgage Pass-Through Trust 2007-3 (the “Exchange
      Act Reports”);

     

    7. Based
      upon my knowledge, the Exchange Act Reports, taken as a whole, do not contain
      any untrue statement of a material fact or omit to state a material fact
      necessary to make the statements made, in light of the circumstances under
      which
      such statements were made, not misleading with respect to the period covered
      by
      this report;

     

    8. Based
      on
      my knowledge, all of the distribution, servicing and other information required
      to be provided under Form 10-D for the period covered by this report is included
      in the Exchange Act Reports;

     

    9. I
      am
      responsible for reviewing the activities performed by the Company as master
      servicer under the Pooling and Servicing Agreement and, based on my knowledge
      and the compliance review(s) conducted in preparing the servicer compliance
      statement(s) required in this report under Item 1123 of Regulation AB (the
      “Compliance
      Statements”),
      and
      except as disclosed in the Exchange Act Reports, the Company has fulfilled
      its
      obligations as master servicer under the Pooling and Servicing Agreement; and
      

     

    10. All
      of
      the reports on assessment of compliance with servicing criteria for asset-backed
      securities and their related attestation reports on assessment of compliance
      with servicing criteria for asset-backed securities required to be included
      in
      this report in accordance with Item 1122 of Regulation AB and Exchange Act
      Rules
      13a-18 and 15d-18 have been included as an exhibit to this report, except as
      otherwise disclosed in this report. Any material instances of noncompliance
      described in such reports have been disclosed in this report on Form 10-K.
      [In
      giving the certifications above, I have reasonably relied on information
      provided to me by the following unaffiliated parties [name of servicer,
      sub-servicer, co-servicer, depositor or trustee].

    
       

      
        
          
            
              
                
                  	 	 	 
	
                           Date:

                        	
                        
	 
 	
                          

                        
	 	
                          
                            

                          

                          
                            [Signature]

                          

                        
	 	
                          [Title]

                        
	 	
                           

                        

                

              

            

          

        

      

       

      
        
          
          

        

        
          Q-1

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